Document:

Exhibit 4.2

 

CARDIODX, INC.

 

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

August 16, 2012

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Registration Rights
    	
2
    
	
 
    	
 
    	
 
    
	
 
    	
1.1
    	
Definitions
    	
2
    
	
 
    	
1.2
    	
Request for Registration
    	
4
    
	
 
    	
1.3
    	
Company Registration
    	
6
    
	
 
    	
1.4
    	
Form S-3 Registration
    	
6
    
	
 
    	
1.5
    	
Obligations of the Company
    	
7
    
	
 
    	
1.6
    	
Furnish Information
    	
9
    
	
 
    	
1.7
    	
Expenses of Registration
    	
9
    
	
 
    	
1.8
    	
Underwriting Requirements
    	
10
    
	
 
    	
1.9
    	
Delay of Registration
    	
11
    
	
 
    	
1.10
    	
Indemnification
    	
11
    
	
 
    	
1.11
    	
Reports Under the Exchange Act
    	
13
    
	
 
    	
1.12
    	
Assignment of Registration Rights
    	
14
    
	
 
    	
1.13
    	
Limitations on Subsequent Registration Rights
    	
15
    
	
 
    	
1.14
    	
Lock-Up Agreement
    	
15
    
	
 
    	
1.15
    	
Termination of Registration Rights
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Covenants of the Company
    	
16
    
	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Delivery of Financial Statements
    	
16
    
	
 
    	
2.2
    	
Inspection
    	
17
    
	
 
    	
2.3
    	
Right of First Offer
    	
18
    
	
 
    	
2.4
    	
Proprietary Information Agreements
    	
20
    
	
 
    	
2.5
    	
Employee and Consultant Stock
    	
20
    
	
 
    	
2.6
    	
Directors’ Expenses and Compensation
    	
20
    
	
 
    	
2.7
    	
Qualified Small Business Stock
    	
20
    
	
 
    	
2.8
    	
Future Rights of First Refusal; Assignment of Rights of   First Refusal
    	
21
    
	
 
    	
2.9
    	
Insurance
    	
21
    
	
 
    	
2.10
    	
Affiliated Transactions
    	
21
    
	
 
    	
2.11
    	
Tax Treatment of the Series BB Preferred Stock and   Series CC Preferred Stock
    	
21
    
	
 
    	
2.12
    	
Termination of Covenants
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Miscellaneous
    	
22
    
	
 
    	
 
    	
 
    
	
 
    	
3.1
    	
Termination
    	
22
    
	
 
    	
3.2
    	
Entire Agreement
    	
22
    
	
 
    	
3.3
    	
Successors and Assigns
    	
22
    
	
 
    	
3.4
    	
Amendments and Waivers
    	
22
    
	
 
    	
3.6
    	
Notices
    	
23
    
	
 
    	
3.7
    	
Severability
    	
24
    
	
 
    	
3.8
    	
Governing Law
    	
24
    

 

i

 

	
 
    	
3.9
    	
Counterparts
    	
24
    
	
 
    	
3.10
    	
Titles and Subtitles
    	
24
    
	
 
    	
3.11
    	
Aggregation of Stock
    	
24
    

 

ii

 

CARDIODX, INC

 

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

This Amended and Restated Investors’ Rights Agreement (the “Agreement”) is made as of the 16th day of August, 2012, by and among CardioDx, Inc., a Delaware corporation (the “Company”), the investors listed on Exhibit A hereto, each of which is herein referred to as an “Investor,” and, collectively, the “Investors,” David Levison and The Christopher R. Burrow Living Trust, dated 12/05/2007, each of whom is herein referred to as a “Founder,” and, collectively, as the “Founders.”

 

RECITALS

 

The Company, the Founders and certain of the Investors (the “Existing Investors”) are parties to an Amended and Restated Investors’ Rights Agreement dated as of February 17, 2011 (the “Prior Rights Agreement”).  The undersigned Existing Investors are holders of at least 60% of the “Registrable Securities” now outstanding not including the Founders’ Stock or the Loan Agreement Warrant Stock (as such terms are defined in the Prior Rights Agreement), which constitute the consent required to amend and restate the Prior Rights Agreement pursuant to Sections 1.13, 2.3 and 3.4 thereof.  The Company and certain of the Investors (the “Series CC Investors”) have entered into a Series CC Preferred Stock Purchase Agreement dated as of August 13, 2012 (the “Purchase Agreement”) pursuant to which the Company desires to sell to the Series CC Investors and the Series CC Investors desire to purchase from the Company shares of the Company’s Series CC-1 Preferred Stock and Series CC-2 Preferred Stock (together, the “Series CC Preferred Stock”).  In order to induce the Series CC Investors to purchase Series CC Preferred Stock of the Company pursuant to the Purchase Agreement, the Company, the Founders, the holders of at least 60% of the “Registrable Securities” now outstanding (as defined in the Prior Rights Agreement) and the Series CC Investors have indicated their willingness to enter into this Agreement upon the terms and conditions set forth below, which amends, restates and supersedes the Prior Rights Agreement in its entirety.

 

AGREEMENT

 

The parties hereby agree as follows:

 

A.                                    Amendments of Prior Rights Agreement; Waiver of Right of First Offer.                        Effective and contingent (i) upon execution of this Agreement by the Company and the Existing Investors holding at least 60% of the outstanding Registrable Securities not including the Founders’ Stock or the Loan Agreement Warrant Stock (as such terms are defined in the Prior Rights Agreement), and (ii) upon the initial closing of the transactions contemplated by the Purchase Agreement, the Prior Rights Agreement is hereby amended and restated in its entirety to read as set forth in this Agreement, and the Company, the Founders, and the Investors hereby agree to be bound by the provisions hereof as the sole agreement of the Company, the Founders and the Investors with respect to registration rights of the Company’s securities and certain other 

 

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rights, as set forth herein.  The Existing Investors that are Major Investors (as defined in the Prior Rights Agreement) hereby waive the Right of First Offer, including the notice requirements, set forth in the Prior Rights Agreement with respect to the issuance of Series CC Preferred Stock pursuant to the Purchase Agreement.

 

1.                                      Registration Rights.  The Company, the Founders and the Investors covenant and agree as follows:

 

1.1                               Definitions.  For purposes of this Agreement:

 

(a)                                 The term “Exchange Act” means the Securities Exchange Act of 1934, as amended (and any successor thereto) and the rules and regulations promulgated thereunder;

 

(b)                                 The term “Form S-3” means such form under the Securities Act as in effect on the date hereof or any successor form under the Securities Act that permits significant incorporation by reference of the Company’s subsequent public filings under the Exchange Act;

 

(c)                                  The term “Founders’ Stock” means the shares of Common Stock issued to the Founders;

 

(d)                                 The term “Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.12 of this Agreement;

 

(e)                                  The term “Major Investor” means each Holder (or transferee of such Holder) of at least 1,000,000 shares (as adjusted for stock splits, dividends, combinations, recapitalizations or the like with respect to such shares) of Registrable Securities.  Notwithstanding the foregoing, “Major Investor” shall not include any Holder reasonably deemed by the Company to be a competitor of the Company, provided that neither GE Capital Equity Investments, Inc. nor GE Healthcare, a division of General Electric Company (together with their respective affiliates, “GE”) shall be deemed a competitor of the Company during such time as GE is not in material breach of its covenants to (1) treat as confidential, in accordance with the terms of the Side Letter, dated as of May 6, 2010, between the Company and GE, any non-public information received from the Company (the “Information”), (2) use safeguards for protecting such Information, and (3) disclose or make such Information available to any third party solely in connection with GE’s investment decisions concerning the Company;

 

(f)                                   The term “Qualified IPO” means a firm commitment underwritten public offering by the Company of shares of its Common Stock in connection with which all the then-outstanding shares of Preferred Stock are converted into shares of Common Stock pursuant to the Company’s Amended and Restated Certificate of Incorporation as amended from time to time (the “Restated Certificate”);

 

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(g)                                  The terms “register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document;

 

(h)                                 The term “Registrable Securities” means (i) the shares of Common Stock issuable or issued upon conversion of the Company’s Series AA Preferred Stock, Series BB Preferred Stock, and Series CC Preferred Stock (other than Common Stock issued upon conversion of Series CC Preferred Stock in connection with a Special Mandatory Conversion (as defined in the Restated Certificate)); (ii) the shares of Founders’ Stock, provided, however, that for the purposes of Section 1.2, 1.4, 1.13, 2.1, 2.2 and 2.3 the Founders’ Stock shall not be deemed Registrable Securities and the Founders shall not be deemed Holders; (iii) the shares of Common Stock issuable or issued upon conversion of the Series AA Preferred Stock issuable or issued upon exercise of that certain warrant issued by the Company to Lighthouse Capital Partners V, L.P. in August, 2005 (the “Loan Agreement Warrant Stock”), provided, however, that for the purposes of Sections 1.2, 1.4, 1.13, 2.1, 2.3 and 3.4 the Loan Agreement Warrant Stock shall not be deemed Registrable Securities and the holders thereof shall not be deemed Holders; (iv) the shares of Common Stock issuable or issued upon conversion of the Preferred Stock issuable or issued upon exercise of the warrants issued by the Company pursuant to that certain Convertible Note and Warrant Purchase Agreement, among the Company and the other parties thereto, dated as of August 1, 2008; (v) the shares of Common Stock issuable or issued upon conversion of the Series AA Preferred Stock issuable or issued upon exercise of the warrants issued by the Company pursuant to that certain Convertible Note and Warrant Purchase Agreement, among the Company and the other parties thereto, dated as of May 5, 2009, as amended by that certain Amendment No. 1 to Convertible Note and Warrant Purchase Agreement, dated as of November 9, 2009, that certain Amendment No. 2 to Convertible Note and Warrant Purchase Agreement, dated as of January 28, 2010, and that certain Amendment No. 3 to Convertible Note and Warrant Purchase Agreement, dated as of March 16, 2010; (vi) the shares of Common Stock issuable or issued upon conversion of the Series AA Preferred Stock issuable or issued upon exercise of the warrants issued by the Company pursuant to that certain Convertible Note and Warrant Purchase Agreement, among the Company and the other parties thereto, dated as of August 26, 2010; (vii) the shares of Common Stock issuable or issued upon conversion of the Series AA Preferred Stock issuable or issued upon exercise of the warrants issued by the Company pursuant to that certain Short-Term Note and Warrant Purchase Agreement, among the Company and the other parties thereto, dated as of September 27, 2010; (viii) the shares of Common Stock issuable or issued upon conversion of the Series AA Preferred Stock issuable or issued upon exercise of the warrants issued by the Company pursuant to that certain Convertible Note and Warrant Purchase Agreement, among the Company and the other parties thereto, dated as of October 26, 2010; and (ix) any other shares of Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares listed in (i) — (viii); provided further, however, that the foregoing definition shall exclude in all cases any Registrable Securities sold by a person in a transaction in 

 

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which his or her rights under this Agreement are not assigned.  Notwithstanding the foregoing, Common Stock or other securities shall only be treated as Registrable Securities if and so long as (A) they have not been sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction, (B) they have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof so that all transfer restrictions, and restrictive legends with respect thereto, if any, are removed upon the consummation of such sale, or (C) the rights of the Holder thereof have not been terminated in accordance with Section 1.15 below;

 

(i)                                     Except as modified pursuant to Section 1.1(h), clauses (ii) and (iii), the number of shares of “Registrable Securities then outstanding” shall be determined by the number of shares of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities;

 

(j)                                    The term “Required Investors” means Investors holding at least 60% of the Registrable Securities then outstanding (not including the Founders’ Stock or the Loan Agreement Warrant Stock).

 

(k)                                 The term “SEC” means the Securities and Exchange Commission; and

 

(l)                                     The term “Securities Act” means the Securities Act of 1933, as amended (and any successor thereto) and the rules and regulations promulgated thereunder.

 

1.2                               Request for Registration.

 

(a)                                 If the Company shall receive at any time after the earlier of (i) the fourth anniversary of the latest to occur of the Initial Closing, the last Elective Closing, or the Milestone Closing (each as defined in the Purchase Agreement) or (ii) six months after the effective date of the first registration statement for a public offering of securities of the Company (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or an SEC Rule 145 transaction), a written request from the Holders of a majority of the Registrable Securities then outstanding that the Company file a registration statement under the Securities Act covering the registration of Registrable Securities with anticipated aggregate offering price, net of underwriting discounts and commissions, of at least $5,000,000, then the Company shall, within 10 days of the receipt thereof, give written notice of such request to all Holders and shall, subject to the limitations of subsection 1.2(b), use commercially reasonable efforts to be registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered within 20 days after the mailing of such notice by the Company.

 

(b)                                 If the Holders initiating the registration request hereunder (“Initiating Holders”) intend to distribute the Registrable Securities covered by their request by 

 

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means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.2 and the Company shall include such information in the written notice referred to in subsection 1.2(a).  The underwriter will be selected by a majority in interest of the Initiating Holders and shall be reasonably acceptable to the Company.  In such event, the right of any Holder to include his Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in subsection 1.5(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting.  Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all participating Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each participating Holder; provided, however, that the number of shares of Registrable Securities to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting.

 

(c)                                  Notwithstanding the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2, a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be filed and it is therefore essential to defer the filing of such registration statement, the Company shall have the right to defer such filing for a period of not more than 120 days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve-month period.

 

(d)                                 In addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this Section 1.2:

 

(i)                                     After the Company has effected two registrations pursuant to this Section 1.2 and such registrations have been declared or ordered effective;

 

(ii)                                  During the period starting with the date 90 days prior to the Company’s good faith estimate of the date of filing of, and ending on a date 90 days after the effective date of, a registration subject to Section 1.3 hereof unless such offering is the initial public offering of the Company’s securities (“IPO”), in which case, ending on a date 180 days after the effective date of such registration subject to Section 1.3 hereof; provided that the Company is actively employing in good faith all reasonable efforts to cause such registration statement to become effective; or

 

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(iii)                               If the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 1.4 below.

 

1.3                               Company Registration.

 

(a)                                 If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its stock under the Securities Act in connection with the public offering of such securities solely for cash (other than a registration relating solely to the sale of securities to participants in a Company stock plan or a transaction covered by Rule 145 under the Securities Act, a registration in which the only stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered, or any registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities), the Company shall, at such time, promptly give each Holder written notice of such registration.  Upon the written request of each Holder given within 20 days after mailing of such notice by the Company in accordance with Section 3.5, the Company shall, subject to the provisions of Section 1.8, use commercially reasonable efforts to cause to be registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered, if any of the Company’s stock is registered in such registration.

 

(b)                                 The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration.  The expenses of such registration shall be borne by the Company, in accordance with Section 1.7 hereof.

 

1.4                               Form S-3 Registration.  In case the Company shall receive from any Holder or Holders a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company will:

 

(a)                                 promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and

 

(b)                                 use commercially reasonable efforts, as soon as practicable, to effect such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within 15 days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 1.4:  (i) if Form S-3 is not 

 

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available for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $500,000; (iii) if the Company shall furnish to the Holders a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Form S-3 Registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than 120 days after receipt of the request of the Holder or Holders under this Section 1.4; provided, however, that the Company shall not utilize this right more than once in any 12-month period; (iv) if the Company has, within the 12-month period preceding the date of such request, already effected two registrations on Form S-3 for the Holders pursuant to this Section 1.4; (v) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance; or (vi) during the period ending 180 days after the effective date of a registration statement subject to Section 1.3.

 

(c)                                  Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders.  Registrations effected pursuant to this Section 1.4 shall not be counted as demands for registration or registrations effected pursuant to Sections 1.2 or 1.3, respectively.

 

1.5                               Obligations of the Company.  Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

(a)                                 Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for up to 120 days, or until the distribution described in such registration statement is completed, if earlier.  The Company shall not be required to file, cause to become effective or maintain the effectiveness of any registration statement that contemplates a distribution of securities on a delayed or continuous basis pursuant to Rule 415 under the Securities Act.

 

(b)                                 Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for up to 120 days, or until the distribution described in such registration statement is completed, if earlier.

 

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(c)                                  Furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them.

 

(d)                                 Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

 

(e)                                  In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering.  Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 

(f)                                   Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, such obligation to continue for 120 days or until the distribution described in such registration statement is completed, if earlier.

 

(g)                                  Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then listed.

 

(h)                                 Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration.

 

(i)                                     Use its commercially reasonable efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being sold through underwriters, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters and (ii) a letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters.

 

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1.6                               Furnish Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s Registrable Securities.  The Company shall have no obligation with respect to any registration requested pursuant to Section 1.2 or Section 1.4 of this Agreement if, as a result of the application of the preceding sentence, the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in subsection 1.2(a) or subsection 1.4(b)(ii), whichever is applicable.

 

1.7                               Expenses of Registration.

 

(a)                                 Demand Registration.  All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to Section 1.2, including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company, and the reasonable fees and disbursements not to exceed $50,000 of one counsel for the selling Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld, shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 1.2; provided further, however, that if at the time of such withdrawal, the Holders (i) have learned of a material adverse change in the condition, business, or prospects of the Company that was not known to the Holders at the time of their request and (ii) have withdrawn the request with reasonable promptness following disclosure by the Company of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall not forfeit their rights pursuant to Section 1.2.

 

(b)                                 Company Registration.  All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications of Registrable Securities pursuant to Section 1.3 for each Holder (which right may be assigned as provided in Section 1.12), including (without limitation) all registration, filing, and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements not to exceed $50,000 of one counsel for the selling Holder or Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld, shall be borne by the Company.

 

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(c)                                  Registration on Form S-3.  All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to Section 1.4, including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company, and the reasonable fees and disbursements not to exceed $50,000 of one counsel for the selling Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld, shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.4 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one Form S-3 registration pursuant to Section 1.4; provided further, however, that if at the time of such withdrawal, the Holders (i) have learned of a material adverse change in the condition, business, or prospects of the Company that was not known to the Holders at the time of their request and (ii) have withdrawn the request with reasonable promptness following disclosure by the Company of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall not forfeit their rights pursuant to Section 1.4.

 

1.8                               Underwriting Requirements.  In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by other persons entitled to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company.  If the total amount of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling stockholders according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions as shall mutually be agreed to by such selling stockholders) but in no event shall (i) the amount of securities of the selling Holders included in the offering be reduced below 25% of the total amount of securities included in such offering, unless such offering is the initial public offering of the Company’s securities, in which case, the selling stockholders may be excluded if the underwriters make the determination described above and no other stockholder’s securities are included or (ii) any securities held by an employee or director of the Company or a Founder (including any transferees (other than the Investors) thereof) be included if any securities held by any selling Holder (other than a Founder or any transferee (other than the Investors) thereof) are excluded.  For purposes of the preceding parenthetical concerning apportionment, for any selling stockholder which is a holder of Registrable Securities and which is a venture capital fund, or a partnership, entity, corporation, or limited liability company, Affiliated Funds (as defined below),

 

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partners, retired partners, members, retired members and stockholders of such holder, or the estates and family members of any such partners, retired partners, members, retired members and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling stockholder,” and any pro-rata reduction with respect to such “selling stockholder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling stockholder,” as defined in this sentence.  The term “Affiliated Fund” means, (i) with respect to a Holder that is a limited liability company or a limited liability partnership, a fund or entity managed or advised by the same manager or managing member or general partner or management company or by an entity controlling, controlled by, or under common control with such manager or managing member or general partner or management company or adviser, (ii) with respect to a Holder that is not a limited liability company or a limited liability partnership, an entity controlling, controlled by, or under common control with such Holder, and (iii) with respect to GE, an entity controlling, controlled by, or under common control with GE Capital Equity Investments, Inc. and GE Healthcare, a division of the General Electric Company.

 

1.9                               Delay of Registration.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1.

 

1.10                        Indemnification.  In the event any Registrable Securities are included in a registration statement under this Section 1:

 

(a)                                 To the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”):  (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the Company will pay to each such Holder, underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected

 

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without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Holder, underwriter or controlling person for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person.

 

(b)                                 To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other Holder selling securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this subsection 1.10(b), in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, that in no event shall any indemnity under this subsection 1.10(b) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder.

 

(c)                                  Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.10, but the omission so to deliver written

 

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notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.10.

 

(d)                                 If the indemnification provided for in this Section 1.10 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided, that in no event shall any contribution by a Holder under this Subsection 1.10(d), when combined with any amounts paid by such Holder pursuant to Section 1.10(b), exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

 

(e)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 

(f)                                   The obligations of the Company and Holders under this Section 1.10 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise.

 

1.11                        Reports Under the Exchange Act .  With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:

 

(a)                                 make and keep public information available, as those terms are understood and defined in SEC Rule 144, at all times after 90 days after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public so long as the Company remains subject to the periodic reporting requirements under Sections 13 or 15(d) of the Exchange Act;

 

(b)                                 take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the Holders to

 

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utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its securities to the general public is declared effective;

 

(c)                                  file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; and

 

(d)                                 furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after 90 days after the effective date of the first registration statement filed by the Company), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form.

 

1.12                        Assignment of Registration Rights.  The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee (i) of at least 600,000 shares of Registrable Securities (subject to adjustment for stock splits, stock dividends, reclassification or the like) (or if the transferring Holder owns less than 600,000 shares of Registrable Securities, then all Registrable Securities held by the transferring Holder), (ii) that is a subsidiary, parent, partner, limited partner, retired partner, member, retired member or stockholder of a Holder, (iii) that is an Affiliated Fund of the Holder, (iv) who is a Holder’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (such a relation, a Holder’s “Immediate Family Member”, which term shall include adoptive relationships), or (v) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member, provided the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; and provided, further, that such assignment shall be effective only if the transferee agrees in writing to be bound by this Agreement and immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Securities Act.  For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings of transferees and assignees of (x) a partnership who are partners or retired partners of such partnership or (y) a limited liability company who are members or retired members of such limited liability company (including Immediate Family Members of such partners or members who acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership or limited liability company; provided that all assignees and transferees who would not qualify individually

 

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for assignment of registration rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under Section 1.

 

1.13                        Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior written consent of the Required Investors, enter into any agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder (a)  to include such securities in any registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the number of the Registrable Securities of the Holders that are included, or (b) to make a demand registration; provided that this limitation shall not apply to any additional Investor who becomes a party to this Agreement in accordance with Section 3.4.

 

1.14                        Lock-Up Agreement.

 

(a)                                 Lock-Up Period; Agreement.  In connection with the initial public offering of the Company’s securities and upon request of the Company or the underwriters managing such offering of the Company’s securities, each Holder agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company, however or whenever acquired (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date of such registration as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Company’s initial public offering regardless of whether Holder is participating in the initial public offering; provided, however, that if (i) during the last 17 days of the 180 day period, the Company releases earnings results or material news or a material event relating to the Company occurs or (ii) prior to the expiration of the 180 day period, the Company announces that it will release earnings results during the 16 day period beginning on the last day of the 180 day period, then in each case the transfer restrictions will be extended until the expiration of the 18 day period beginning on the date of release of the earnings results or the occurrence of the material news or material event, as applicable, unless the Company or the managing underwriters waive, in writing, such extension.

 

(b)                                 Limitations.  The obligations described in Section 1.14(a) shall apply only if all officers and directors of the Company and all one-percent securityholders (the “Restricted Securityholders”) enter into similar agreements, and shall not apply to a registration relating solely to employee benefit plans, or to a registration relating solely to a transaction pursuant to Rule 145 under the Securities Act.  In addition, to the extent any of the Restricted Securityholders have any of their respective securities of the Company released early or exempted from the obligations described in Section 1.14(a) (the “Released Securities”), then each other securityholder subject to the obligations described in Section 1.14(a) shall be similarly released or exempted from their obligations on a pro rata basis (based upon the number of

 

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Released Securities held by the released or exempted Restricted Securityholder relative to the total aggregate number of securities held by such Restricted Securityholder).

 

(c)                                  Stop-Transfer Instructions.  In order to enforce the foregoing covenants, the Company may impose stop-transfer instructions with respect to the securities of each Holder (and the securities of every other person subject to the restrictions in Section 1.14(a)).

 

(d)                                 Transferees Bound.  Each Holder agrees that it will not transfer securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of this Section 1.14, provided that this Section 1.14(d) shall not apply to transfers pursuant to a registration statement or transfers after the 12-month anniversary of the effective date of the Company’s initial registration statement subject to this Section 1.14.

 

(e)                                  Future Securityholders.  Unless otherwise approved by the Board of Directors (including the approval of at least a majority of the Preferred Directors (as defined in the Restated Certificate) then in office), the Company shall cause each future securityholder to enter into an agreement under which such securityholder agrees to be bound by a similar lock-up provision.

 

1.15                        Termination of Registration Rights.  No Holder shall be entitled to exercise any right provided for in this Section 1 after the earlier of (i) three years following the consummation of a Qualified IPO, (ii) beginning one year following the effective date of an IPO when under Rule 144 or another similar exemption under the Securities Act all of such Holder’s shares are available for sale during a three-month period without registration, or (iii) upon termination of the Agreement, as provided in Section 3.1.

 

2.                                      Covenants of the Company.

 

2.1                               Delivery of Financial Statements.  Commencing with the fiscal year beginning January 1, 2012, the Company shall deliver to each Major Investor:

 

(a)                                 as soon as practicable, but in any event within 150 days after the end of each fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the Company and statement of stockholder’s equity as of the end of such year, and a statement of cash flows for such year, such year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted accounting principles (“GAAP”), and, audited and certified by an independent public accounting firm of nationally recognized standing selected by the Company;

 

(b)                                 as soon as practicable, but in any event within 45 days after the end of each of the first three quarters of each fiscal year of the Company, an unaudited profit or loss statement, a statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter;

 

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(c)                                  as soon as practicable, but in any event within 30 days after the end of each calendar month, an unaudited profit or loss statement, a statement of cash flows for such calendar month and an unaudited balance sheet as of the end of such calendar month;

 

(d)                                 as soon as practicable, but in any event within 30 days prior to the end of each fiscal year of the Company, a preliminary annual budget of the Company;

 

(e)                                  as soon as practicable, but in any event within 90 days after the end of each fiscal year of the Company, a final annual budget of the Company approved by the Board of Directors;

 

(f)                                   with respect to the financial statements called for in subsections (b) and (c) of this Section 2.1, an instrument executed on behalf of the Company by the Chief Financial Officer or President of the Company and certifying on behalf of the Company that such financials fairly present the financial condition of the Company and its results of operation for the period specified, subject to year-end audit adjustment, provided that the foregoing shall not restrict the right of the Company to change its accounting principles consistent with GAAP, if the Board of Directors (or a committee thereof) determines that it is in the best interest of the Company to do so.

 

Notwithstanding the foregoing, even if GE is no longer a Major Investor, the Company agrees to deliver to GE the financial statements described in clauses (a), (b) and (c) so long as GE owns any securities of the Company, provided that GE is not in material breach of its covenants pursuant to the following sentence (such covenants, the “GE Confidentiality Covenants”).  By its execution of this Agreement, GE covenants that it will (1) treat as confidential any Information in accordance with the terms of the Side Letter, dated as of May 6, 2010, between the Company and GE, (2) use safeguards for protecting such Information, and (3) disclose or make such Information available to any third party solely in connection with GE’s investment decisions concerning the Company.

 

2.2                               Inspection.

 

(a)                                 The Company shall permit each Major Investor and such Major Investor’s employees, agents or representatives, at such Major Investor’s expense, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be requested by the Investor; provided, however, that the Company shall not be obligated pursuant to this Section 2.2(a) to provide access to any information which it reasonably considers to be a trade secret or similar confidential proprietary information unless the Major Investor (together with each of its employees, agents or representatives) executes a non-disclosure agreement in a form reasonable acceptable to the Company (an “NDA”); provided further, such NDA shall not require confidential proprietary information to be kept confidential if it (a) is known or becomes known to the public in general (other than as a result of a breach of a NDA), (b) is or has been

 

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independently developed or conceived by the Major Investor without use of or reference to the Company’s confidential proprietary information, or (c) is or has been made known or disclosed to the Major Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided further, pursuant to such NDA, a Major Investor may disclose confidential proprietary information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company, (ii) to any prospective purchaser of any Registrable Securities from such Major Investor, if such prospective purchaser agrees to be bound by the provisions of the NDA and provided that such prospective purchaser is not a competitor of the Company in the Company’s reasonable determination, (iii) to any Affiliated Fund, partner, member, stockholder, or wholly owned subsidiary of such Major Investor in the ordinary course of disclosing portfolio company performance, provided that such Major Investor informs each such permitted recipient that such information is confidential and directs each such permitted recipient to maintain the confidentiality of such information, or (iv) as may otherwise be required by law, provided that the Major Investor promptly notifies in writing the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.  Notwithstanding the foregoing, the Company shall have no obligation to provide information that it reasonably considers to be a trade secret or confidential to any Major Investor (or its employees, agents or representatives) who in the Company’s reasonable determination is a competitor of the Company, provided that this sentence does not apply to the Company’s obligation to provide Information to GE which obligation is subject to the GE Confidentiality Covenants set forth elsewhere in this Agreement.

 

(b)                                 In addition to the foregoing, the Company shall provide to V-Sciences Investments Pte Ltd or its affiliated funds (collectively, “V-Sciences”) (i) such financial and operational information regarding the Company as V-Sciences may reasonably require from time to time, including information necessary for the preparation of V-Sciences’ financial accounts and (ii) any other information regarding the Company that V-Sciences may reasonably require to make any filings that are legally required with any regulatory or governmental agency or any stock exchange in any jurisdictions as a result of being a stockholder of the Company, in each case as soon as reasonably practicable following the date of V-Sciences’ written request; provided, however, that the Company shall not be obligated pursuant to this Section 2.2(b) to provide access to any information which it reasonably considers to be a trade secret or similar confidential proprietary information unless V-Sciences (together with each of its employees, agents or representatives) executes an NDA.

 

2.3                               Right of First Offer.  Subject to the terms and conditions specified in this Section 2.3, the Company hereby grants to each Major Investor a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined).  For purposes of this Section 2.3, Major Investor includes any general partners, managing members and affiliates of a Major Investor, including Affiliated Funds.  A Major Investor who chooses to exercise the right of first offer may designate as purchasers under such right itself or its partners or affiliates, including Affiliated Funds, in such proportions as it deems appropriate.

 

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Each time the Company proposes to offer any shares of, or securities convertible into or exercisable for any shares of, any class of its capital stock (“Shares”), the Company shall first make an offering of such Shares to each Major Investor in accordance with the following provisions:

 

(a)                                 The Company shall deliver a notice (the “RFO Notice”) to the Major Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such Shares.

 

(b)                                 Within 20 calendar days after delivery of the RFO Notice, the Major Investor may elect to purchase or obtain, at the price and on the terms specified in the RFO Notice, up to that portion of such Shares which equals the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by such Major Investor bears to the sum of the total number of shares of Common Stock then outstanding (assuming full conversion and exercise of all convertible or exercisable securities).  Such purchase shall be completed at the same closing as that of any third party purchasers or at an additional closing thereunder.  The Company shall promptly, in writing, inform each Major Investor that purchases all the shares available to it (each, a “Fully-Exercising Investor”) of any other Major Investor’s failure to do likewise.  During the 10-day period commencing after receipt of such information, each Fully-Exercising Investor shall be entitled to obtain that portion of the Shares for which Major Investors were entitled to subscribe but which were not subscribed for by the Major Investors that is equal to the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by such Fully-Exercising Investor bears to the total number of shares of Common Stock then outstanding (assuming full conversion and exercise of all convertible or exercisable securities).

 

(c)                                  The Company may, during the 45-day period following the expiration of the period provided in subsection 2.3(b) hereof, offer the remaining unsubscribed portion of the Shares to any person or persons at a price not less than, and upon terms no more favorable to the offeree than those specified in the RFO Notice.  If the Company does not enter into an agreement for the sale of the Shares within such period, or if such agreement is not consummated within 60 days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Major Investors in accordance herewith.

 

(d)                                 The right of first offer in this Section 2.3 shall not be applicable to any issuance of Exempted Securities (as defined in the Restated Certificate).  In addition to the foregoing, the right of first offer in this Section 2.3 shall not be applicable with respect to any Major Investor and any subsequent securities issuance, if (x) at the time of such subsequent securities issuance, the Major Investor is not an “accredited investor,” as that term is then defined

 

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in Rule 501(a) under the Securities Act, and (y) such subsequent securities issuance is otherwise being offered only to accredited investors.

 

(e)                                  The right of first offer in this Section 2.3 may be waived with the written consent of the Company and the Required Investors.

 

2.4                               Proprietary Information Agreements.  After the date hereof, each employee and consultant of the Company shall, as a condition to the commencement and continuation of their employment or consulting relationship, as applicable, with the Company, execute a proprietary information agreement in a form satisfactory to the Company’s Board of Directors.

 

2.5                               Employee and Consultant Stock.  With respect to any shares issued or options or rights granted to any officer, director, employee of or consultant to the Company, unless the Board of Directors (by Super Board Approval (as defined in the Restated Certificate)) approves otherwise, the Company shall cause each such officer, director, employee of or consultant to the Company to enter into an agreement (i) providing for vesting of such shares or options or rights over forty-eight (48) months, with no shares or options or rights being vested for twelve (12) months from the date of issuance or grant, as the case may be, at which time 1/4th of the shares or options or rights shall be vested, and with 1/48th of the shares or options or right vesting per month thereafter; (ii) providing for the repurchase of any unvested restricted stock and similar equity grants (to the extent exercised) in the event the holder’s employment with or service to the Company terminates at a price per share no greater than cost; and (iii) under which the holder undertakes not to, or is otherwise not permitted to, transfer any unvested restricted stock or similar equity grant.

 

2.6                               Directors’ Expenses and Compensation. The Company will reimburse all non-employee directors for their reasonable out-of-pocket expenses related to attending meetings of the Board of Directors (and any committee thereof) and Board of Directors matters.

 

2.7                               Qualified Small Business Stock.  Upon the written request by an Investor holding shares of Series AA Preferred Stock issued, upon conversion of the Company’s former Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock purchased pursuant to the respective preferred stock purchase agreement among the Company and the other parties thereto (such Series AA Preferred Stock, the “QSBS Stock”), the Company shall conduct a reasonable investigation to determine whether the QSBS Stock qualifies as “qualified small business stock” within the meaning of Code Sections 1045 and 1202 and Sections 18152.5 and 18038.5 of the California Revenue and Taxation Code, and shall transmit, in writing, the results of such investigation (and, to the extent it so complies, a certificate to such effect in a form reasonably acceptable to such holder) to such holder as expeditiously as reasonably possible, but in no event later than 30 days following the Company’s receipt of such request.

 

2.8                               Future Rights of First Refusal; Assignment of Rights of First Refusal.

 

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(a)                                 In the event that after the date of this Agreement and subject to the Company’s obligation under that certain Amended and Restated Right of First Refusal and Co-Sale Agreement dated as of the date hereof among the Company, the Investors and the other parties thereto, the Company issues shares of Common Stock (other than shares of Common Stock issuable or issued upon conversion of Preferred Stock) to any employee or consultant, the Company shall, as a condition to such issuance, cause such shares of Common Stock to be subject to a right of first refusal on transfers (subject to customary exclusions for estate planning purposes) in favor of the Company, which right may be assignable by the Company.

 

(b)                                 If the Company has any right of first refusal to purchase shares of the Company’s Common Stock (including options exercisable for Common Stock) arising from any agreement or document (“Other Rights Agreement”) other than that certain Amended and Restated Right of First Refusal and Co-Sale Agreement dated as of the date hereof among the Company, the Investors and the other parties thereto, and the Company elects not to exercise such right thereunder in full, the Company agrees to assign such right to the Major Investors on a pro rata basis as permitted pursuant to the terms of such Other Rights Agreement.

 

2.9                               Insurance.  To the extent that and for so long as coverage is available on commercially reasonable terms, as determined by the Board of Directors, the Company shall maintain at all times (i) directors and officers liability insurance with coverage limits customary for similarly situated companies as determined by the Board of Directors (by Super Board Approval) and (ii) general commercial, product liability, fire and casualty insurance policies with coverage deemed appropriate by the Board of Directors.

 

2.10                        Affiliated Transactions.  The Company shall not enter into any transaction outside of the ordinary course of business involving its officers, directors, stockholders, employees or consultants, or any of their Affiliated Funds or any member of their immediate family, without Super Board Approval.

 

2.11                        Compensation Committee.  The Company shall maintain a Compensation Committee of the Board of Directors, and for so long as Longitude Venture Partners, L.P. or its affiliates (“Longitude”) is entitled to designate a director pursuant to the Amended and Restated Voting Agreement dated as of the date hereof, as amended from time to time, such Compensation Committee shall include as a member one individual designated by Longitude.

 

2.12                        Tax Treatment of the Series BB Preferred Stock and Series CC Preferred Stock.  The Company shall not treat the shares of Series BB Preferred Stock or Series CC Preferred Stock as “preferred stock” within the meaning of Section 305 of the Internal Revenue Code, as amended.

 

2.13                        Termination of Covenants.

 

(a)                                 The covenants set forth in Sections 2.1 through 2.12 shall terminate as to each Holder and be of no further force or effect (i) immediately prior to the

 

21

 

consummation of a Qualified IPO, or (ii) upon termination of the Agreement, as provided in Section 3.1.

 

(b)                                 The covenants set forth in Sections 2.1, 2.2, and 2.9 through 2.12 shall terminate as to each Holder and be of no further force or effect when the Company first becomes subject to the periodic reporting requirements of Sections 13 or 15(d) of the Exchange Act, if this occurs earlier than the events described in Section 2.13(a) above.

 

(c)                                  The covenants set forth in Sections 2.1 and 2.2 shall terminate as to GE (i) immediately at such time as GE ceases to own any Registrable Securities, or (ii) during such time as GE is in material breach of the GE Confidentiality Covenants, if either of these events occurs earlier than the events described in Section 2.13(a) or (b) above.

 

3.                                      Miscellaneous.

 

3.1                               Termination.  This Agreement shall terminate, and have no further force and effect, when the Company shall consummate a transaction or series of related transactions deemed to be a liquidation, dissolution or winding up of the Company pursuant to the Restated Certificate with a company subject to and in compliance with the reporting provisions of the Securities Exchange Act of 1934, as amended pursuant to which the Holders receive cash or freely tradable securities listed on the Nasdaq Stock Market, the New York Stock Exchange or any of their respective successor exchanges.

 

3.2                               Entire Agreement.  This Agreement together with (i) the Side Letter, dated as of May 6, 2010, between the Company and GE and (ii) the Side Letter, dated as of the date hereof, between the Company and Intel Capital Corporation, constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled.

 

3.3                               Successors and Assigns.  Except as otherwise provided in this Agreement, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties (including transferees of any of the Company’s Series AA Preferred Stock, Series BB Preferred Stock, Series CC-1 Preferred Stock, Series CC-2 Preferred Stock, or any Common Stock issued upon conversion thereof).  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

3.4                               Amendments and Waivers.  Any term of this Agreement may be amended or waived only with the written consent of the Company and the Required Investors; provided, that if such amendment or waiver has the effect of affecting the registration rights of the holders of Founders’ Stock under Section 1 in a manner adverse to the interests of the holders

 

22

 

of the Founders’ Stock and in a manner materially different than to the interests of the holders of the other Registrable Securities, then such amendment shall require the consent of the holder or holders of a majority of the Founders’ Stock; and provided, further however, that if such amendment or waiver has the effect of affecting the registration rights of the holders of the Loan Agreement Warrant Stock under Section 1 in a manner adverse to the interests of the holders of the Loan Agreement Warrant Stock and in a manner materially different than to the interests of the holders of the other Registrable Securities, then such amendment shall require the consent of the holder or holders of a majority in interest of the Loan Agreement Warrant Stock; and provided, further, however, that no amendment or waiver may be made to (y) the proviso clause of the second sentence of Section 1.1(e) without the written consent of GE, if it is otherwise a “Major Investor” immediately prior to the time of such amendment or waiver or (z) Section 2.1(a) without the written consent of GE, if GE is otherwise an Investor immediately prior to the time of such Amendment; and provided, further however, that no amendment or waiver may be made to Section 2.2(b) that materially and adversely affects the rights of V-Sciences without the written consent of V-Sciences; and provided, further however, if an amendment or waiver (i) by its express terms does not apply to all Investors (or all Major Investors, as the case may be) and (ii) by its express terms, or is primarily intended to, materially and adversely affects the rights of an Investor (or a group of Investors) in a manner differently and more adversely than the effect of such amendment or waiver on the rights of all other Investors (or all other Major Investors, as the case may be), then such amendment or waiver shall require the consent of such differently affected Investor (or a majority in interest of such differently affected Investors or a majority in interest of such differently affected Major Investors, as applicable).  Notwithstanding the foregoing, any Investor may waive its own rights under this Agreement and this Agreement may be amended with only the written consent of the Company for the sole purpose of including additional purchasers of Series CC-1 Preferred Stock or Series CC-2 Preferred Stock as “Investors” and “Holders.”  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each party to the Agreement, whether or not such party has signed such amendment or waiver, each future holder of all such Registrable Securities, and the Company.  For avoidance of doubt, any amendment that only includes additional purchasers of the Company’s Preferred Stock to this Agreement shall not be deemed to affect an Investor, the Founders’ Stock or the Loan Agreement Warrant Stock in a manner adverse to the interests of other Investors, the holders of the Founders’ Stock or the holders of the Loan Agreement Warrant Stock, respectively.  The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination or waiver.

 

3.6                               Notices.  Unless otherwise provided, any notice required or permitted by this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or:  (a) personal delivery to the party to be notified, (b) upon confirmation of facsimile transfer, if sent by facsimile, (c) 72 hours after having been sent by registered or certified mail, return receipt requested, postage prepaid, (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt, or (e) upon confirmation of receipt, if sent by

 

23

 

electronic mail, provided however that with respect to any such notice sent to Intel Corporation or GE by electronic mail, a copy of such notice shall also be given in accordance with one of the other means permitted by this Section 3.6.  All communications shall be sent to the respective parties at their address, facsimile number or e-mail address as set forth on Exhibit A or the signature pages hereto, or to such address, facsimile number or e-mail address as subsequently modified by written notice given in accordance with this Section 3.6.

 

3.7                               Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith.  In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms.

 

3.8                               Governing Law.  This Agreement and all acts and transactions pursuant hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of laws.

 

3.9                               Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

3.10                        Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

3.11                        Aggregation of Stock.  All shares of the Preferred Stock held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

3.12                        Delays or Omissions.  It is agreed that no delay or omission to exercise any right, power, or remedy accruing to any party, upon any breach, default or noncompliance by another party under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring.  It is further agreed that any waiver, permit, consent, or approval of any kind or character on any party’s part of any breach, default or noncompliance under the Agreement or any waiver on such party’s part of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in such writing; provided, however, the foregoing shall not limit the ability of the Required Investors to waive any provision of this Agreement for all parties hereto as set forth in Section 3.4.  All remedies, either under this Agreement, by law, or otherwise afforded to any party, shall be cumulative and not alternative.

 

[Signature Pages Follow]

 

24

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
COMPANY:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CARDIODX, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   David Levison
    	
 
    
	
 
    	
David   Levison, President and Chief
    	
 
    
	
 
    	
Executive   Officer
    	
 
    

 

Address:           2500 Faber Place

Palo Alto, CA 94303

 

Fax:

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
FOUNDERS:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ David Levison
    	
 
    
	
DAVID LEVISON
    	
 
    

 

Address:           c/o CardioDx, Inc.

2500 Faber Place

Palo Alto, CA 94303

 

Fax:

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
V-SCIENCES   INVESTMENTS PTE LTD
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rohit Sipahimalani
    
	
 
    	
Name:
    	
Rohit   Sipahimalani
    
	
 
    	
Title:
    	
Authorised   Signatory
    
	
 
    	
 
    
	
 
    	
Address:
    	
60B   Orchard Road, #06-18 Tower 2
    
	
 
    	
 
    	
The   Atrium@Orchard, Singapore 238891
    
	
 
    	
 
    	
(Attention:   Fidah Alsagoff / Fazeela Rashid)
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
ARTIMAN   VENTURES III, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Artiman III, L.P., its General Partner
    
	
 
    	
By:   Artiman III, Ltd., its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yatin Mundkur
    
	
 
    	
Name:
    	
Yatin   Mundkur
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
ARTIMAN   VENTURES III AFFILIATES FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Artiman III, L.P., its General Partner
    
	
 
    	
By:   Artiman III, Ltd., its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yatin Mundkur
    
	
 
    	
Name:
    	
Yatin   Mundkur
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
ARTIMAN   VENTURES III PRINCIPALS FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Artiman III, L.P., its General Partner
    
	
 
    	
By:   Artiman III, Ltd., its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yatin Mundkur
    
	
 
    	
Name:
    	
Yatin   Mundkur
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
ARTIMAN   VENTURES SPECIAL OPPORTUNITIES FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Artiman SOF, L.L.C., its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yatin Mundkur
    
	
 
    	
Name:
    	
Yatin   Mundkur
    
	
 
    	
Title:
    	
Managing   Member
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
2000   University Ave, Suite 602
    
	
 
    	
East   Palo Alto, CA 94303
    

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LONGITUDE   VENTURE PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
LONGITUDE   CAPITAL PARTNERS, LLC, ITS GENERAL PARTNER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Patrick Enright
    
	
 
    	
 
    	
Patrick   Enright
    
	
 
    	
 
    	
Authorized   Member of the General Partner
    
	
 
    	
 
    
	
 
    	
Address:
    	
800   El Camino Real
    
	
 
    	
 
    	
Suite 220
    
	
 
    	
 
    	
Menlo   Park, CA 94025
    
	
 
    	
 
    	
Attn:   Patrick Enright
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 

 
    
	
 
    	
LONGITUDE   CAPITAL ASSOCIATES, L.P.
    
	
 
    	
 

 
    
	
 
    	
By:
    	
LONGITUDE   CAPITAL PARTNERS, LLC, ITS GENERAL PARTNER
    
	
 
    	
 

 
    
	
 
    	
By:
    	
/s/   Patrick Enright
    
	
 
    	
 
    	
Patrick   Enright
    
	
 
    	
 
    	
Authorized   Member of the General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    	
800   El Camino Real
    
	
 
    	
 
    	
Suite 220
    
	
 
    	
 
    	
Menlo   Park, CA 94025
    
	
 
    	
 
    	
Attn:   Patrick Enright
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
JPMORGAN   DIRECT VENTURE CAPITAL INSTITUTIONAL INVESTORS IV LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
J.P. Morgan Investment Management Inc.,
    
	
 
    	
Its:
    	
Investment Advisor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Taplitz
    
	
 
    	
Name:
    	
David Taplitz
    
	
 
    	
Its:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
JPMORGAN VENTURE   CAPITAL INSTITUTIONAL OFFSHORE INVESTORS IV L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
J.P. Morgan Investment Management Inc.,
    
	
 
    	
Its:
    	
Sub-Advisor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Taplitz
    
	
 
    	
Name:
    	
David Taplitz
    
	
 
    	
Its:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
522 FIFTH AVENUE FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
J.P. Morgan Investment Management Inc.,
    
	
 
    	
Its:
    	
Investment Advisor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Taplitz
    
	
 
    	
Name:
    	
David Taplitz
    
	
 
    	
Its:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
Address:
    	
c/o J.P. Morgan Investment Management Inc.
    
	
 
    	
 
    	
270 Park Avenue - 25th Floor
    
	
 
    	
 
    	
New York, NY 10117
    
	
 
    	
 
    	
Attention: Julian Shles
    
					

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INGANES VENTURES LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nataliya Zhmaylo Theocharous
    
	
 
    	
 
    
	
 
    	
Name:
    	
Nataliya   Zhmaylo Theocharous
    
	
 
    	
 
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
Address: c/o Trident Trust Company (B.V.I.)   Limited
    
	
 
    	
Trident Chambers
    
	
 
    	
P.O. Box 146
    
	
 
    	
Road Town
    
	
 
    	
Tortola
    
	
 
    	
British Virgin Islands
    

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACADIA   WOODS PARTNERS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Aryeh Davis
    
	
 
    	
 
    
	
 
    	
Name:
    	
Aryeh   Davis
    
	
 
    	
 
    
	
 
    	
Title:
    	
as   agent/attorney-in-fact for Jeffrey Samberg
    
	
 
    	
 
    
	
 
    	
Address:
    	
Acadia   Woods Partners, LLC
    
	
 
    	
 
    	
c/o   Pequot Capital Management, Inc.
    
	
 
    	
 
    	
187   Danbury Road
    
	
 
    	
 
    	
Wilton,   CT  06897
    
	
 
    	
 
    	
Attention:   Amy Jennings
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   JEFFREY SAMBERG AMENDED AND RESTATED TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey Samberg
    
	
 
    	
 
    
	
 
    	
Name:
    	
Jeffrey   S. Samberg
    
	
 
    	
 
    
	
 
    	
Title:
    	
as   Grantor and Trustee
    
	
 
    	
 
    
	
 
    	
Address:
    	
c/o   Hawkes Financial LLC
    
	
 
    	
 
    	
77   Bedord Road, Katonah, NY 10536
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Arthur Samberg
    
	
 
    	
ARTHUR   SAMBERG
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GE CAPITAL EQUITY   INVESTMENTS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rafael Torres
    
	
 
    	
 
    
	
 
    	
Name:
    	
Rafael Torres
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Address:
    	
201 Merritt 7
    
	
 
    	
 
    	
Norwalk,   Connecticut 06582
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GE HEALTHCARE,
    
	
 
    	
a division of General Electric   Company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Markus Ewert
    
	
 
    	
 
    
	
 
    	
Name:
    	
Markus Ewert
    
	
 
    	
Title:
    	
Executive Vice President, Business Development
    
	
 
    	
 
    
	
 
    	
Address:
    	
Pollards Wood, Nightingales Lane
    
	
 
    	
 
    	
Chalfont   St. Giles, HP8 4SP
    
	
 
    	
 
    	
Great   Britain
    
					

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
DAG   VENTURES IV-QP, L.P.
    
	
 
    	
 
    
	
 
    	
By: DAG Ventures   Management IV, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kendra Ragatz
    
	
 
    	
Name:
    	
Kendra Ragatz
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Address:
    	
251 Lytton Avenue
    
	
 
    	
 
    	
Suite 200
    
	
 
    	
 
    	
Palo   Alto, CA 94301
    
	
 
    	
 
    
	
 
    	
DAG VENTURES IV, L.P.
    
	
 
    	
 
    
	
 
    	
By: DAG Ventures Management IV, LLC, its General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kendra Ragatz
    
	
 
    	
Name:
    	
Kendra Ragatz
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Address:
    	
251 Lytton Avenue
    
	
 
    	
 
    	
Suite 200
    
	
 
    	
 
    	
Palo Alto, CA 94301
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
Gamla Livförsäkringsaktiebolaget   SEB Trygg Liv (publ)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Mr. Victor Lang
    
	
 
    	
Title:
    	
Head of Private Equity
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Anders Jöngard
    
	
 
    	
Name:
    	
Mr. Anders Jöngard
    
	
 
    	
Title:
    	
Director, Private Equity
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Mr. Erik Svanholm
    
	
 
    	
Title:
    	
Director, Private Equity
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Emilio Dauvin
    
	
 
    	
Name:
    	
Mr. Emilio Dauvin
    
	
 
    	
Title:
    	
Director, Private Equity
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    	
SEB Wealth Management
    
	
 
    	
 
    	
Sveavägen 8, ST S6
    
	
 
    	
 
    	
106 40 Stockholm
    
	
 
    	
 
    	
Sweden
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
KPCB   HOLDINGS, INC., AS NOMINEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul Vronsky
    
	
 
    	
 
    
	
 
    	
Name:
    	
Paul   Vronsky
    
	
 
    	
(print)
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
General   Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    	
c/o   Kleiner Perkins Caufield & Byers
    
	
 
    	
 
    	
2750   Sand Hill Road
    
	
 
    	
 
    	
Menlo   Park, CA 94025
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
TPG   BIOTECHNOLOGY PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   
    	
TPG   Biotechnology GenPar, L.P.,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
By:   
    	
TPG   Biotechnology GenPar Advisors, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Ronald Cami
    
	
 
    	
Name:   Ronald Cami
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    	
c/o   TPG Ventures, L.P.
    
	
 
    	
 
    	
301   Commerce Street
    
	
 
    	
 
    	
Suite 3300
    
	
 
    	
 
    	
Fort   Worth, TX 76102
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TPG   VENTURES, L.P.
    
	
 
    	
 
    
	
 
    	
By:   
    	
TPG   Ventures GenPar, L.P.,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
By:   
    	
TPG   Ventures GenPar Advisors, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Ronald Cami
    
	
 
    	
Name:   Ronald Cami
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
Address:
    	
c/o   TPG Ventures, L.P.
    
	
 
    	
 
    	
301   Commerce Street
    
	
 
    	
 
    	
Suite 3300
    
	
 
    	
 
    	
Fort   Worth, TX 76102
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
TPG BIOTECH REINVEST AIV, L.P.
    
	
 
    	
 
    
	
 
    	
By:   
    	
TPG   Biotechnology GenPar, L.P.,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
By:   
    	
TPG   Biotechnology GenPar Advisors, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Ronald Cami
    
	
 
    	
Name:    Ronald Cami
    
	
 
    	
Title:    Vice President
    
	
 
    	
 
    
	
 
    	
Address:   
    	
c/o   TPG Ventures, L.P.
    
	
 
    	
 
    	
301   Commerce Street
    
	
 
    	
 
    	
Suite 3300
    
	
 
    	
 
    	
Fort   Worth, TX 76102
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TPG VENTURES REINVEST AIV, L.P.
    
	
 
    	
 
    
	
 
    	
By:   
    	
TPG   Ventures GenPar, L.P.,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
By:   
    	
TPG   Ventures GenPar Advisors, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Ronald Cami
    
	
 
    	
Name:    Ronald Cami
    
	
 
    	
Title:    Vice President
    
	
 
    	
 
    
	
 
    	
Address:   
    	
c/o   TPG Ventures, L.P.
    
	
 
    	
 
    	
301   Commerce Street
    
	
 
    	
 
    	
Suite 3300
    
	
 
    	
 
    	
Fort   Worth, TX 76102
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties hereto have executed this Amended and Restated Investors’ Rights Agreement as of the date first written above.

 

 

	
 
    	
 
    	
 
    	
MDV   VIII, L.P. 
    as nominee for
    
	
 
    	
 
    	
 
    	
MDV   VIII, L.P.,
    
	
 
    	
 
    	
 
    	
MDV   VIII Leaders’ Fund, L.P., and
    
	
 
    	
 
    	
 
    	
MDV   ENF VIII, L.P.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
Eighth   MDV Partners, L.L.C., General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   P. B. Cleveland
    
	
 
    	
 
    	
 
    	
Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
Mohr,   Davidow Ventures 
   3000 Sand Hill Road 
   Bldg. 3, Suite 290 
   Menlo Park, CA 94025
    

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties hereto have executed this Amended and Restated Investors’ Rights Agreement as of the date first written above.

 

	
 
    	
INTEL   CAPITAL CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Douglas M. Lusk
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 Douglas M. Lusk
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 Assistant Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MIDDLEFIELD VENTURES, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Douglas M. Lusk
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 Douglas M. Lusk
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 Assistant Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
Address:   
    	
c/o   Intel Corporation
    
	
 
    	
 
    	
Attn:   Intel Capital Portfolio Manager
    
	
 
    	
 
    	
2200   Mission College Boulevard
    
	
 
    	
 
    	
M/S   RNB6-59
    
	
 
    	
 
    	
Santa   Clara, CA 95054-1549
    
				

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
A.M.   PAPPAS LIFE SCIENCE VENTURES IV, L.P.
    
	
 
    	
By:   
    	
AMP&A   Management IV, LLC
    
	
 
    	
Its:   
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ford S. Worthy
    
	
 
    	
Name:   
    	
Ford   S. Worthy
    
	
 
    	
Title:   
    	
Partner &   CFO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 PV IV CEO FUND, L.P. 
    
	
 
    	
By:   
    	
AMP&A   Management IV, LLC 
    
	
 
    	
Its:   
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ford S. Worthy
    
	
 
    	
Name:   
    	
Ford   S. Worthy
    
	
 
    	
Title:   
    	
Partner &   CFO
    
	
 
    	
 
    
	
 
    	
Address:
    	
c/o   Pappas Ventures
    
	
 
    	
 
    	
P.   O. Box 110287
    
	
 
    	
 
    	
Research   Triangle Park, NC 27709
    
					

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
/s/   Louis Lange
    
	
 
    	
Louis   Lange
    
	
 
    	
 
    
	
 
    	
Address:   c/o Asset Management Company Venture
    
	
 
    	
Fund,   LLC
    
	
 
    	
2100   Geng Road, Suite 200
    
	
 
    	
Palo   Alto, California 94303
    

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
ASSET MANAGEMENT COMPANY VENTURE FUND, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Bennet S. Dubin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:   
    	
Bennet   S. Dubin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:   
    	
Managing   Parter
    
	
 
    	
 
    
	
 
    	
Address:
    	
2100   Geng Road, Suite 200
    
	
 
    	
 
    	
Palo   Alto, California 94303
    
					

 

SIGNATURE PAGE TO CARDIODX, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

EXHIBIT A

 

INVESTORS

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
V-Sciences   Investments Pte Ltd 

60B   Orchard Road, #06-18 Tower 2 

The   Atrium@Orchard, Singapore 238891 

(Attention:   Fidah Alsagoff / Fazeela 

Rashid)   
    	
 
    	
0
    	
 
    	
0
    	
 
    	
13,318,113
    	
 
    	
11,986,301
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Artiman   Ventures III, L.P. 

2000   University Ave, Suite 602 

East   Palo Alto, CA 94303 
    	
 
    	
0
    	
 
    	
10,716,455
    	
 
    	
1,112,126
    	
 
    	
1,000,914
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Artiman   Ventures III Affiliates Fund, L.P. 

2000   University Ave, Suite 602 

East   Palo Alto, CA 94303 
    	
 
    	
0
    	
 
    	
96,475
    	
 
    	
10,012
    	
 
    	
9,011
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Artiman   Ventures III Principals Fund, L.P. 
   2000 University Ave, Suite 602 
   East Palo Alto, CA 94303 
    	
 
    	
0
    	
 
    	
187,070
    	
 
    	
19,414
    	
 
    	
17,472
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Artiman   Ventures Special Opportunities Fund, L.P.
   2000 University Ave, Suite 602 
   East Palo Alto, CA 94303 
    	
 
    	
0
    	
 
    	
0
    	
 
    	
2,378,235
    	
 
    	
2,140,411
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Longitude   Venture Partners, L.P. 
   800 El Camino Real 
   Suite 220 
   Menlo Park, CA 94025 
   Attn: Patrick Enright 
    	
 
    	
0
    	
 
    	
16,665,950
    	
 
    	
2,984,323
    	
 
    	
2,685,891
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Longitude Capital Associates, L.P.  
   800 El Camino Real 
   Suite 220 
   Menlo Park, CA 94025 
   Attn: Patrick Enright 
    	
 
    	
0
    	
 
    	
334,050
    	
 
    	
59,817
    	
 
    	
53,835
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
JPMorgan   Direct Venture Capital Institutional Investors IV LLC 
   c/o J.P. Morgan Investment Management Inc. 
   270 Park Avenue - 25th Floor 
   New York, NY 10117 
   Attention: Julian Shles 
    	
 
    	
0
    	
 
    	
6,636,000
    	
 
    	
576,291
    	
 
    	
518,662
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
JPMorgan   Venture Capital Institutional Offshore Investors IV L.P. 
   c/o J.P. Morgan Investment Management Inc. 
   270 Park Avenue - 25th Floor 
   New York, NY 10117 
   Attention: Julian Shles 
    	
 
    	
0
    	
 
    	
276,500
    	
 
    	
24,012
    	
 
    	
21,611
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
522   Fifth Avenue Fund, L.P. 
   c/o J.P. Morgan Investment Management Inc. 
   270 Park Avenue - 25th Floor 
   New York, NY 10117 
   Attention: Julian Shles 
    	
 
    	
0
    	
 
    	
87,500
    	
 
    	
7,599
    	
 
    	
6,839
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Inganes   Ventures Limited 
   c/o Trident Trust Company (B.V.I.) Limited 
   Trident Chambers 
   P.O. Box 146 
   Road Town 
   Tortola 
   British Virgin Islands
    	
 
    	
0
    	
 
    	
5,000,000
    	
 
    	
38,052
    	
 
    	
34,247
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Acadia   Woods Partners, LLC 
   c/o Pequot Capital Management, Inc. 
   187 Danbury Road 
   Wilton, CT  06897 
   Attention: Amy Jennings 
    	
 
    	
0
    	
 
    	
5,000,000
    	
 
    	
243,938
    	
 
    	
219,544
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Jeffrey Samberg Amended and Restated Trust 
   c/o Pequot Capital Management, Inc.  
    187 Danbury Road 
   Wilton, CT  06897 
   Attention: Amy Jennings 
    	
 
    	
0
    	
 
    	
0
    	
 
    	
95,139
    	
 
    	
85,625
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Arthur   Samberg 
   c/o Pequot Capital Management, Inc.  
    187 Danbury Road 
   Wilton, CT  06897 
   Attention: Amy Jennings 
    	
 
    	
0
    	
 
    	
0
    	
 
    	
95,139
    	
 
    	
85,625
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
GE   Capital Equity Investments, Inc. 
   201 Merritt 7 
   PO Box 5201 
   Norwalk, Connecticut 06851 
   Attn: Account Manager — CardioDX, Inc. 
    
   with a copy to: 
    
   GE Capital Equity Capital Group, Inc. 
   201 Merritt 7 
   PO Box 5201 
   Norwalk, Connecticut 06851 
   Attn: GE Equity General Counsel
    	
 
    	
499,156
    	
 
    	
0
    	
 
    	
32,511
    	
 
    	
29,260
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
GE   Healthcare,

a division of General Electric Company

101 Carnegie Center

Princeton, NJ 08540-6231

Attn:  General Counsel

 

With a copy to:

 

GE Healthcare,

a division of General Electric Company

9900 W   Innovation Dr. (RP 2166)

Wauwatosa, WI   53226

Attn:    Derek W. Vander Heide
    	
 
    	
499,156
    	
 
    	
0
    	
 
    	
32,511
    	
 
    	
29,260
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
DAG Ventures IV-QP,   L.P.

251 Lytton Avenue

Suite 200

Palo Alto, CA 94301

Attn: Kendra Ragatz
    	
 
    	
872,544
    	
 
    	
2,581,067
    	
 
    	
156,812
    	
 
    	
141,130
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
DAG Ventures IV, L.P.

251 Lytton Avenue

Suite 200 

Palo Alto, CA 94301

Attn: Kendra Ragatz
    	
 
    	
92,210
    	
 
    	
272,769
    	
 
    	
16,572
    	
 
    	
14,915
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gamla Livförsäkringsaktiebolaget SEB 

Trygg Liv (publ)

SEB Wealth Management

Sveavägen 8, ST S6

106 40 Stockholm

Sweden
    	
 
    	
199,662
    	
 
    	
686,729
    	
 
    	
39,750
    	
 
    	
35,775
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
GC&H Investments, LLC

c/o Cooley LLP

101 California Street

5th floor

San Francisco, CA 94111
    	
 
    	
9,982
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
KPCB   Holdings, Inc., as Nominee

c/o   Kleiner Perkins Caufield & Byers

2750   Sand Hill Road 

Menlo   Park, CA 94025
    	
 
    	
3,765,795
    	
 
    	
6,824,169
    	
 
    	
114,155
    	
 
    	
102,740
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TPG   Biotechnology Partners, L.P.

301   Commerce Street, Suite 3300

Fort   Worth, TX  76102

817-871-4000

Attn.:   John Viola
    	
 
    	
1,923,972
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TPG Ventures, L.P.

301 Commerce Street, Suite 3300

Fort   Worth, TX  76102

817-871-4000

Attn.:   John Viola
    	
 
    	
960,429
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TPG   Biotech Reinvest AIV, L.P.

301   Commerce Street, Suite 3300

Fort   Worth, TX  76102

817-871-4000

Attn.:   John Viola
    	
 
    	
555,519
    	
 
    	
1,400,000
    	
 
    	
171,729
    	
 
    	
154,556
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TPG Ventures Reinvest AIV, L.P.

301   Commerce Street, Suite 3300

Fort   Worth, TX  76102

817-871-4000

Attn.:   John Viola
    	
 
    	
99,676
    	
 
    	
600,000
    	
 
    	
73,598
    	
 
    	
66,238
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MDV   VIII, L.P.

as   nominee for

MDV   VIII, L.P.,

MDV   VIII Leaders’ Fund, L.P., and 

MDV   ENF VIII, L.P.

Mohr,   Davidow Ventures 3000 Sand Hill 

Road   Bldg. 3, Suite 290 

Menlo   Park, CA 94025
    	
 
    	
2,846,761
    	
 
    	
3,556,499
    	
 
    	
38,052
    	
 
    	
34,247
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Intel   Capital Corporation

c/o   Intel Corporation

Attn:   Intel Capital Portfolio Manager

2200   Mission College Boulevard

M/S   RNB6-59

Santa   Clara, CA 95054-1549
    	
 
    	
1,218,992
    	
 
    	
1,755,000
    	
 
    	
38,052
    	
 
    	
34,247
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Middlefield   Ventures, Inc.

c/o   Intel Corporation

Attn:   Intel Capital Portfolio Manager

2200   Mission College Boulevard

M/S   RNB6-59

Santa   Clara, CA 95054-1549
    	
 
    	
960,111
    	
 
    	
1,399,165
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.M.   Pappas Life Science Ventures, IV, L.P.

c/o   Pappas Ventures

P.   O. Box 110287

Research   Triangle Park, NC 27709

 

Alternatively   to:

 

c/o   Pappas Ventures

2520 Meridian Parkway

Suite 400

Durham, NC 27713
    	
 
    	
1,037,974
    	
 
    	
2,852,235
    	
 
    	
270,200
    	
 
    	
243,180
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PV   IV CEO Fund, L.P.

c/o   Pappas Ventures

P.   O. Box 110287

Research   Triangle Park, NC 27709

 

Alternatively   to:

 

c/o Pappas Ventures

2520 Meridian Parkway

Suite 400

Durham,   NC 27713
    	
 
    	
49,403
    	
 
    	
135,756
    	
 
    	
12,861
    	
 
    	
11,575
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Louis   Lange

c/o   Asset Management Company Venture Fund, LLC

2100   Geng Road, Suite 200

Palo   Alto, CA 94303
    	
 
    	
123,760
    	
 
    	
159,571
    	
 
    	
21,437
    	
 
    	
19,293
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lockard/Marduel   Revocable Trust

153   Pfeiffer Street

San   Francisco, CA 94133
    	
 
    	
77,227
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Asset Management Company Venture Fund, LLC

2100   Geng Road, Suite 200

Palo   Alto, CA 94303
    	
 
    	
124,403
    	
 
    	
942,751
    	
 
    	
96,717
    	
 
    	
87,045
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Stanford   Venture Capital Holdings, Inc.

Stanford   Group Company

6075   Poplar Avenue, Third Floor

Memphis,   Tennessee 38119
    	
 
    	
264,115
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
David   Stubbs
    	
 
    	
3,386
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Brent   Milner
    	
 
    	
3,386
    	
 
    	
25,000
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
HEWM/VLG   Investments LLC

c/o   Mark Royer

P.O. Box   372

San   Mateo, CA 94401
    	
 
    	
10,422
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
VLG   Investments 2006 LLC 

c/o   Mark Royer

P.O. Box   372

San   Mateo, CA 94401
    	
 
    	
5,079
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mark   B. Weeks 

c/o   Cooley LLP

3175   Hanover Street

Palo   Alto, CA  94304-1130
    	
 
    	
917
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mark   Windfeld-Hansen

c/o   Cooley LLP

3175   Hanover Street

Palo   Alto, CA  94304-1130
    	
 
    	
338
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Steve   Tonsfeldt

c/o   O’Melveny & Myers LLP

2765   Sand Hill Road

Menlo   Park, CA 94025
    	
 
    	
338
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Richard   A. Kaufman and

Eyla   G. Boies JTWROS 
    	
 
    	
338
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Paye   Venuto Family Trust

[Address]
    	
 
    	
917
    	
 
    	
5,000
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Board of Trustees of the Leland

Stanford   Junior University (DAPER I)

2770   Sand Hill Road 

Menlo   Park, CA 94025
    	
 
    	
6,772
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Board of Trustees of the Leland 

Stanford   Junior University (SEVF II) 

2770   Sand Hill Road 

Menlo   Park, CA 94025
    	
 
    	
6,772
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lighthouse   Capital Partners V, LP 

Lighthouse   Capital

Attn:   Darren Haggerty

500   Drake’s Landing Road

Greenbrae,   CA 94904
    	
 
    	
20,317
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Elizabeth A. and Steven Rosenberg Trust,
   DTD 9/2000
    	
 
    	
0
    	
 
    	
25,000
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Christopher R. Burrow Living Trust,

DATED   12/05/2007
    	
 
    	
0
    	
 
    	
185,000
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Michael   J.  Danaher and Carol Lee 

Danaher,   Trustees of the Danaher Family 

Trust   dated June 29, 2004
    	
 
    	
0
    	
 
    	
35,000
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Littleford-Pearson Trust, Dated 9-Feb-2008
    	
 
    	
0
    	
 
    	
20,000
    	
 
    	
0
    	
 
    	
0
    	
 
    

 

 

	
Name and Address of Purchaser
    	
 
    	
No. of Series AA
   Shares
    	
 
    	
No. of Series BB
   Shares
    	
 
    	
No. of Series
   CC-1 Shares
    	
 
    	
No. of Series
   CC-2 Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Richard A. Kaufman
    	
 
    	
0
    	
 
    	
10,000
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TriplePoint Ventures LLC

2755 Sand Hill Road, Suite 150

Menlo Park, CA 94025
    	
 
    	
0
    	
 
    	
100,000
    	
 
    	
0
    	
 
    	
0
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTALS:
    	
 
    	
16,239,829
    	
 
    	
68,570,711
    	
 
    	
22,077,167
    	
 
    	
19,869,449Exhibit 10.1

 

CARDIODX, INC.

 

2004 STOCK PLAN

 

As amended November 29, 2007

As amended September 29, 2009

As amended May 4, 2010

As amended February 17, 2011

As amended May 6, 2011

As amended August 13, 2012

As amended October 9, 2012

 

1.                                      Purposes of the Plan.  The purposes of this 2004 Stock Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees and Consultants and to promote the success of the Company’s business.  Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant of an option and subject to the applicable provisions of Section 422 of the Code and the regulations and interpretations promulgated thereunder.  Stock purchase rights may also be granted under the Plan.

 

2.                                      Definitions.  As used herein, the following definitions shall apply:

 

(a)                                 “Administrator” means the Board or its Committee appointed pursuant to Section 4 of the Plan.

 

(b)                                 “Affiliate” means an entity other than a Subsidiary (as defined below) which, together with the Company, is under common control of a third person or entity.

 

(c)                                  “Applicable Laws” means the legal requirements relating to the administration of stock option and restricted stock purchase plans, including under applicable U.S. state corporate laws, U.S. federal and applicable state securities laws, other U.S. federal and state laws, the Code, any Stock Exchange rules or regulations and the applicable laws, rules and regulations of any other country or jurisdiction where Options or Stock Purchase Rights are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time.

 

(d)                                 “Board” means the Board of Directors of the Company.

 

(e)                                  “Cause” for termination of a Participant’s Continuous Service Status will exist if the Participant is terminated by the Company for any of the following reasons:  (i) Participant’s willful failure substantially to perform his or her duties and responsibilities to the Company or deliberate violation of a Company policy; (ii) Participant’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company; (iii) unauthorized use or disclosure by Participant of any proprietary information or trade secrets of the Company or any other party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company; or (iv) Participant’s willful breach of any of his or her obligations under any 

 

 

written agreement or covenant with the Company.  The determination as to whether a Participant is being terminated for Cause shall be made in good faith by the Company and shall be final and binding on the Participant.  The foregoing definition does not in any way limit the Company’s ability to terminate a Participant’s employment or consulting relationship at any time as provided in Section 5(d) below, and the term “Company” will be interpreted to include any Subsidiary, Parent or Affiliate, as appropriate.

 

(f)                                   “Change of Control” means (1) a sale of all or substantially all of the Company’s assets, or (2) any merger, consolidation or other business combination transaction of the Company with or into another corporation, entity or person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power represented by the shares of voting capital stock of the Company (or the surviving entity) outstanding immediately after such transaction, or (3) the direct or indirect acquisition (including by way of a tender or exchange offer) by any person, or persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of the Company (other than an equity financing in which the Company is the surviving corporation).

 

(g)                                  “Code” means the Internal Revenue Code of 1986, as amended.

 

(h)                                 “Committee” means one or more committees or subcommittees of the Board appointed by the Board to administer the Plan in accordance with Section 4 below.

 

(i)                                     “Common Stock” means the Common Stock of the Company.

 

(j)                                    “Company” means CardioDx, Inc., a Delaware corporation.

 

(k)                                 “Consultant” means any person, including an advisor, who is engaged by the Company or any Parent, Subsidiary or Affiliate to render services and is compensated for such services, and any director of the Company whether compensated for such services or not.

 

(l)                                     “Continuous Service Status” means the absence of any interruption or termination of service as an Employee or Consultant.  Continuous Service Status as an Employee or Consultant shall not be considered interrupted in the case of:  (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator, provided that such leave is for a period of not more than ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company, its Parents, Subsidiaries, Affiliates or their respective successors.  A change in status from an Employee to a Consultant or from a Consultant to an Employee will not constitute an interruption of Continuous Service Status.

 

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(m)                             “Corporate Transaction” means a sale of all or substantially all of the Company’s assets, or a merger, consolidation or other capital reorganization or business combination transaction of the Company with or into another corporation, entity or person, or the direct or indirect acquisition (including by way of a tender or exchange offer) by any person, or persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of the Company.

 

(n)                                 “Director” means a member of the Board.

 

(o)                                 “Employee” means any person employed by the Company or any Parent, Subsidiary or Affiliate, with the status of employment determined based upon such factors as are deemed appropriate by the Administrator in its discretion, subject to any requirements of the Code or the Applicable Laws.  The payment by the Company of a director’s fee to a Director shall not be sufficient to constitute “employment” of such Director by the Company.

 

(p)                                 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(q)                                 “Fair Market Value” means, as of any date, the fair market value of the Common Stock, as determined by the Administrator in good faith on such basis as it deems appropriate and applied consistently with respect to Participants.  Whenever possible, the determination of Fair Market Value shall be based upon the closing price for the Shares as reported in the Wall Street Journal for the applicable date.

 

(r)                                    “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code, as designated in the applicable Option Agreement.

 

(s)                                   “Involuntary Termination” means termination of a Participant’s Continuous Service Status under the following circumstances:  (i) termination without Cause by the Company or a Subsidiary, Parent or Affiliate, as appropriate; or (ii) voluntary termination by the Participant within 30 days following (A) a material reduction in the Participant’s job responsibilities, provided that neither a mere change in title alone nor reassignment following a Change of Control to a position that is substantially similar to the position held prior to the Change of Control shall constitute a material reduction in job responsibilities; (B) relocation by the Company or a Subsidiary, Parent or Affiliate, as appropriate, of the Participant’s work site to a facility or location more than 50  miles from the Participant’s principal work site for the Company at the time of the Change of Control; or (C) a reduction in Participant’s then-current base salary, provided that an across-the-board reduction in the salary level of all other employees or consultants in positions similar to the Participant’s by the same percentage amount as part of a general salary level reduction shall not constitute such a salary reduction.

 

(t)                                    “Listed Security” means any security of the Company that is listed or approved for listing on a national securities exchange or designated or approved for designation as a national market system security on an interdealer quotation system by the National Association of Securities Dealers, Inc.

 

3

 

(u)                                 “Named Executive” means any individual who, on the last day of the Company’s fiscal year, is the chief executive officer of the Company (or is acting in such capacity) or among the four most highly compensated officers of the Company (other than the chief executive officer).  Such officer status shall be determined pursuant to the executive compensation disclosure rules under the Exchange Act.

 

(v)                                 “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option, as designated in the applicable Option Agreement.

 

(w)                               “Option” means a stock option granted pursuant to the Plan.

 

(x)                                 “Option Agreement” means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of an Option granted under the Plan and includes any documents attached to or incorporated into such Option Agreement, including, but not limited to, a notice of stock option grant and a form of exercise notice.

 

(y)                                 “Option Exchange Program” means a program approved by the Administrator whereby outstanding Options are exchanged for Options with a lower exercise price or are amended to decrease the exercise price as a result of a decline in the Fair Market Value of the Common Stock.

 

(z)                                  “Optioned Stock” means the Common Stock subject to an Option.

 

(aa)                          “Optionee” means an Employee or Consultant who receives an Option.

 

(bb)                          “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code, or any successor provision.

 

(cc)                            “Participant” means any holder of one or more Options or Stock Purchase Rights, or the Shares issuable or issued upon exercise of such awards, under the Plan.

 

(dd)                          “Plan” means this 2004 Stock Plan.

 

(ee)                            “Reporting Person” means an officer, Director, or greater than ten percent stockholder of the Company within the meaning of Rule 16a-2 under the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange Act.

 

(ff)                              “Restricted Stock” means Shares of Common Stock acquired pursuant to a grant of a Stock Purchase Right under Section 11 below.

 

(gg)                            “Restricted Stock Purchase Agreement” means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of a Stock Purchase Right granted under the Plan and includes any documents attached to such agreement.

 

4

 

(hh)                          “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from time to time, or any successor provision.

 

(ii)                                  “Share” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan.

 

(jj)                                “Stock Exchange” means any stock exchange or consolidated stock price reporting system on which prices for the Common Stock are quoted at any given time.

 

(kk)                          “Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 11 below.

 

(ll)                                  “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision.

 

(mm)                  “Ten Percent Holder” means a person who owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary.

 

3.                                      Stock Subject to the Plan.  Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares that may be sold under the Plan is 26,715,162 Shares of Common Stock.  The Shares may be authorized, but unissued, or reacquired Common Stock.  If an award should expire or become unexercisable for any reason without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares that were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan.  In addition, any Shares of Common Stock which are retained by the Company upon exercise of an award in order to satisfy the exercise or purchase price for such award or any withholding taxes due with respect to such exercise or purchase shall be treated as not issued and shall continue to be available under the Plan.  Shares issued under the Plan and later repurchased by the Company pursuant to any repurchase right which the Company may be available for future grant under the Plan.

 

4.                                      Administration of the Plan.

 

(a)                                 General.  The Plan shall be administered by the Board or a Committee, or a combination thereof, as determined by the Board.  The Plan may be administered by different administrative bodies with respect to different classes of Participants and, if permitted by the Applicable Laws, the Board may authorize one or more officers to make awards under the Plan.

 

(b)                                 Committee Composition.  If a Committee has been appointed pursuant to this Section 4, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.  From time to time the Board may increase the size of any Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies (however caused) and remove all members of a Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws and, in the case of a Committee administering the Plan in accordance with the 

 

5

 

requirements of Rule 16b-3 or Section 162(m) of the Code, to the extent permitted or required by such provisions.  The Committee shall in all events conform to any requirements of the Applicable Laws.

 

(c)                                  Powers of the Administrator.  Subject to the provisions of the Plan and in the case of a Committee, the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:

 

(i)                                     to determine the Fair Market Value of the Common Stock, in accordance with Section 2(q) of the Plan, provided that such determination shall be applied consistently with respect to Participants under the Plan;

 

(ii)                                  to select the Employees and Consultants to whom Plan awards may from time to time be granted;

 

(iii)                               to determine whether and to what extent Plan awards are granted;

 

(iv)                              to determine the number of Shares of Common Stock to be covered by each award granted;

 

(v)                                 to approve the form(s) of agreement(s) used under the Plan;

 

(vi)                              to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder, which terms and conditions include but are not limited to the exercise or purchase price, the time or times when awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, any pro rata adjustment to vesting as a result of a Participant’s transitioning from full- to part-time service (or vice versa), and any restriction or limitation regarding any Option, Optioned Stock, Stock Purchase Right or Restricted Stock, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

 

(vii)                           to determine whether and under what circumstances an Option may be settled in cash under Section 10(c) instead of Common Stock;

 

(viii)                        to implement an Option Exchange Program on such terms and conditions as the Administrator in its discretion deems appropriate, provided that no amendment or adjustment to an Option that would materially and adversely affect the rights of any Optionee shall be made without the prior written consent of the Optionee;

 

(ix)                              to adjust the vesting of an Option held by an Employee or Consultant as a result of a change in the terms or conditions under which such person is providing services to the Company;

 

(x)                                 to construe and interpret the terms of the Plan and awards granted under the Plan, which constructions, interpretations and decisions shall be final and binding on all Participants; and

 

6

 

(xi)                              in order to fulfill the purposes of the Plan and without amending the Plan, to modify grants of Options or Stock Purchase Rights to Participants who are foreign nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs.

 

5.                                      Eligibility.

 

(a)                                 Recipients of Grants.  Nonstatutory Stock Options and Stock Purchase Rights may be granted to Employees and Consultants.  Incentive Stock Options may be granted only to Employees, provided that Employees of Affiliates shall not be eligible to receive Incentive Stock Options.

 

(b)                                 Type of Option.  Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.

 

(c)                                  ISO $100,000 Limitation.  Notwithstanding any designation under Section 5(b), to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 5(c), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares subject to an Incentive Stock Option shall be determined as of the date of the grant of such Option.

 

(d)                                 No Employment Rights.  The Plan shall not confer upon any Participant any right with respect to continuation of an employment or consulting relationship with the Company, nor shall it interfere in any way with such Participant’s right or the Company’s right to terminate the employment or consulting relationship at any time for any reason.

 

6.                                      Term of Plan.  The Plan shall become effective upon its adoption by the Board of Directors.  It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 16 of the Plan.

 

7.                                      Term of Option.  The term of each Option shall be the term stated in the Option Agreement; provided that the term shall be no more than ten years from the date of grant thereof or such shorter term as may be provided in the Option Agreement and provided further that, in the case of an Incentive Stock Option granted to a person who at the time of such grant is a Ten Percent Holder, the term of the Option shall be five years from the date of grant thereof or such shorter term as may be provided in the Option Agreement.

 

8.                                      Limitation on Grants to Employees.  Subject to adjustment as provided in Section 14 below, the maximum number of Shares that may be subject to Options and Stock Purchase Rights granted to any one Employee under this Plan for any fiscal year of the Company shall be 1,000,000, provided that this Section 8 shall apply only after such time, if any, as the Common Stock becomes a Listed Security.

 

7

 

9.                                      Option Exercise Price and Consideration.

 

(a)                                 Exercise Price.  The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is determined by the Administrator and set forth in the Option Agreement, but shall be subject to the following:

 

(i)                                     In the case of an Incentive Stock Option

 

(A)                               granted to an Employee who at the time of grant is a Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant; or

 

(B)                               granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

 

(ii)                                  In the case of a Nonstatutory Stock Option

 

(A)                               granted on any date on which the Common Stock is not a Listed Security to a person who is at the time of grant is a Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant if required by the Applicable Laws and, if not so required, shall be such price as is determined by the Administrator;

 

(B)                               granted on any date on which the Common Stock is not a Listed Security to any other eligible person, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant if required by the Applicable Laws and, if not so required, shall be such price as is determined by the Administrator; or

 

(C)                               granted on any date on which the Common Stock is a Listed Security to any eligible person, the per share Exercise Price shall be such price as determined by the Administrator provided that if such eligible person is, at the time of the grant of such Option, a Named Executive of the Company, the per share Exercise Price shall be no less than 100% of the Fair Market Value on the date of grant if such Option is intended to qualify as performance-based compensation under Section 162(m) of the Code.

 

(iii)                               Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a merger or other corporate transaction.

 

(b)                                 Permissible Consideration.  The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of (1) cash; (2) check; (3) subject to any requirements of the Applicable Laws (including without limitation Section 153 of the Delaware General Corporation Law), delivery of Optionee’s promissory note having such recourse, interest, security and redemption provisions as the Administrator determines to be appropriate after taking into account the potential accounting consequences of permitting an Optionee to deliver a 

 

8

 

promissory note; (4) cancellation of indebtedness; (5) other Shares that have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is exercised, provided that in the case of Shares acquired, directly or indirectly, from the Company, such Shares must have been owned by the Optionee for more than six months on the date of surrender (or such other period as may be required to avoid the Company’s incurring an adverse accounting charge); (6) if, as of the date of exercise of an Option the Company then is permitting employees to engage in a “same-day sale” cashless brokered exercise program involving one or more brokers, through such a program that complies with the Applicable Laws (including without limitation the requirements of Regulation T and other applicable regulations promulgated by the Federal Reserve Board) and that ensures prompt delivery to the Company of the amount required to pay the exercise price and any applicable withholding taxes; or (7) any combination of the foregoing methods of payment.  In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company and the Administrator may, in its sole discretion, refuse to accept a particular form of consideration at the time of any Option exercise.

 

10.                               Exercise of Option.

 

(a)                                 General.

 

(i)                                     Exercisability. Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator, consistent with the term of the Plan and reflected in the Option Agreement, including vesting requirements and/or performance criteria with respect to the Company and/or the Optionee; provided however that, if required under the Applicable Laws, the Option (or Shares issued upon exercise of the Option) shall comply with the requirements of Section 260.140.41(f) and (k) of the Rules of the California Corporations Commissioner.

 

(ii)                                  Leave of Absence. The Administrator shall have the discretion to determine whether and to what extent the vesting of Options shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, vesting of Options shall be tolled during any such unpaid leave (unless otherwise required by the Applicable Laws).  In the event of military leave, vesting shall toll during any unpaid portion of such leave, provided that, upon a Participant’s returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to Options to the same extent as would have applied had the Participant continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave.

 

(iii)                               Minimum Exercise Requirements.  An Option may not be exercised for a fraction of a Share.  The Administrator may require that an Option be exercised as to a minimum number of Shares, provided that such requirement shall not prevent an Optionee from exercising the full number of Shares as to which the Option is then exercisable.

 

9

 

(iv)                              Procedures for and Results of Exercise.  An Option shall be deemed exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised.  Full payment may, as authorized by the Administrator, consist of any consideration and method of payment allowable under Section 9(b) of the Plan, provided that the Administrator may, in its sole discretion, refuse to accept any form of consideration at the time of any Option exercise.

 

Exercise of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 

(v)                                 Rights as Stockholder.  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 14 of the Plan.

 

(b)                                 Termination of Employment or Consulting Relationship.  Except as otherwise set forth in this Section 10(b), the Administrator shall establish and set forth in the applicable Option Agreement the terms and conditions upon which an Option shall remain exercisable, if at all, following termination of an Optionee’s Continuous Service Status, which provisions may be waived or modified by the Administrator at any time.  Unless the Administrator otherwise provides in the Option Agreement, to the extent that the Optionee is not vested in Optioned Stock at the date of termination of his or her Continuous Service Status, or if the Optionee (or other person entitled to exercise the Option) does not exercise the Option to the extent so entitled within the time specified in the Option Agreement or below (as applicable), the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option shall revert to the Plan.  In no event may any Option be exercised after the expiration of the Option term as set forth in the Option Agreement (and subject to Section 7).

 

The following provisions (1) shall apply to the extent an Option Agreement does not specify the terms and conditions upon which an Option shall terminate upon termination of an Optionee’s Continuous Service Status, and (2) establish the minimum post-termination exercise periods that may be set forth in an Option Agreement:

 

(i)                                     Termination other than Upon Disability or Death or for Cause.  In the event of termination of Optionee’s Continuous Service Status other than under the circumstances set forth in subsections (ii) through (v) below, such Optionee may exercise an Option for 30 days following such termination to the extent the Optionee was vested in the Optioned Stock as of the date of such termination.  No termination shall be deemed to occur and this Section 10(b)(i) shall not apply if (i) the Optionee is a Consultant who becomes an Employee, or (ii) the Optionee is an Employee who becomes a Consultant.

 

10

 

(ii)                                  Disability of Optionee.  In the event of termination of an Optionee’s Continuous Service Status as a result of his or her disability (including a disability within the meaning of Section 22(e)(3) of the Code), such Optionee may exercise an Option at any time within six months following such termination to the extent the Optionee was vested in the Optioned Stock as of the date of such termination.

 

(iii)                               Death of Optionee.  In the event of the death of an Optionee during the period of Continuous Service Status since the date of grant of the Option, or within thirty days following termination of Optionee’s Continuous Service Status, the Option may be exercised by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance at any time within twelve months following the date of death, but only to the extent the Optionee was vested in the Optioned Stock as of the date of death or, if earlier, the date the Optionee’s Continuous Service Status terminated.

 

(iv)                              Termination for Cause.  In the event of termination of an Optionee’s Continuous Service Status for Cause, any Option (including any exercisable portion thereof) held by such Optionee shall immediately terminate in its entirety upon first notification to the Optionee of termination of the Optionee’s Continuous Service Status.  If an Optionee’s employment or consulting relationship with the Company is suspended pending an investigation of whether the Optionee shall be terminated for Cause, all the Optionee’s rights under any Option likewise shall be suspended during the investigation period and the Optionee shall have no right to exercise any Option.  This Section 10(b)(iv) shall apply with equal effect to vested Shares acquired upon exercise of an Option granted on any date on which the Common Stock is not a Listed Security to a person other than an officer, Director or Consultant, in that the Company shall have the right to repurchase such Shares from the Participant upon the following terms:  (A) the repurchase is made within 90 days of termination of the Participant’s Continuous Service Status for Cause at the Fair Market Value of the Shares as of the date of termination, (B) consideration for the repurchase consists of cash or cancellation of purchase money indebtedness, and (C) the repurchase right terminates upon the effective date of the Company’s initial public offering of its Common Stock.  With respect to vested Shares issued upon exercise of an Option granted to any officer, Director or Consultant, the Company’s right to repurchase such Shares upon termination of the Participant’s Continuous Service Status for Cause shall be made at the Participant’s original cost for the Shares and shall be effected pursuant to such terms and conditions, and at such time, as the Administrator shall determine.  Nothing in this Section 10(b)(iv) shall in any way limit the Company’s right to purchase unvested Shares issued upon exercise of an Option as set forth in the applicable Option Agreement.

 

(c)                                  Buyout Provisions.  The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted under the Plan based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made.

 

11.                               Stock Purchase Rights.

 

(a)                                 Rights to Purchase.  When the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing of the terms,

 

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conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within which such person must accept such offer.  In the case of a Stock Purchase Right granted prior to the date, if any, on which the Common Stock becomes a Listed Security and if required by the Applicable Laws at that time, the purchase price of Shares subject to such Stock Purchase Rights shall not be less than 85% of the Fair Market Value of the Shares as of the date of the offer, or, in the case of a Ten Percent Holder, the price shall not be less than 100% of the Fair Market Value of the Shares as of the date of the offer.  If the Applicable Laws do not impose the requirements set forth in the preceding sentence and with respect to any Stock Purchase Rights granted after the date, if any, on which the Common Stock becomes a Listed Security, the purchase price of Shares subject to Stock Purchase Rights shall be as determined by the Administrator.  The offer to purchase Shares subject to Stock Purchase Rights shall be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the Administrator.

 

(b)                                 Repurchase Option.

 

(i)                                     General.  Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s employment with the Company for any reason (including death or disability).  Subject to any requirements of the Applicable Laws (including without limitation Section 260.140.42(h) of the Rules of the California Corporations Commissioner), the terms of the Company’s repurchase option (including without limitation the price at which, and the consideration for which, it may be exercised, and the events upon which it shall lapse) shall be as determined by the Administrator in its sole discretion and reflected in the Restricted Stock Purchase Agreement.

 

(ii)                                  Leave of Absence. The Administrator shall have the discretion to determine whether and to what extent the lapsing of Company repurchase rights shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, such lapsing shall be tolled during any such unpaid leave (unless otherwise required by the Applicable Laws).  In the event of military leave, the lapsing of Company repurchase rights shall toll during any unpaid portion of such leave, provided that, upon a Participant’s returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she shall be given “vesting” credit with respect to Shares purchased pursuant to the Restricted Stock Purchase Agreement to the same extent as would have applied had the Participant continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave.

 

(iii)                               Termination for Cause.  In the event of termination of a Participant’s Continuous Service Status for Cause, the Company shall have the right to repurchase from the Participant vested Shares issued upon exercise of a Stock Purchase Right granted to any person other than an officer, Director or Consultant prior to the date, if any, upon which the Common Stock becomes a Listed Security upon the following terms:  (A) the repurchase must be made within 90 days of termination of the Participant’s Continuous Service Status for Cause at the Fair Market Value of the Shares as of the date of termination, (B)

 

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consideration for the repurchase consists of cash or cancellation of purchase money indebtedness, and (C) the repurchase right terminates upon the effective date of the Company’s initial public offering of its Common Stock. With respect to vested Shares issued upon exercise of a Stock Purchase Right granted to any officer, Director or Consultant, the Company’s right to repurchase such Shares upon termination of such Participant’s Continuous Service Status for Cause shall be made at the Participant’s original cost for the Shares and shall be effected pursuant to such terms and conditions, and at such time, as the Administrator shall determine.  Nothing in this Section 11(b)(ii) shall in any way limit the Company’s right to purchase unvested Shares as set forth in the applicable Restricted Stock Purchase Agreement.

 

(c)                              Other Provisions.  The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion.  In addition, the provisions of Restricted Stock Purchase Agreements need not be the same with respect to each purchaser.

 

(d)                                 Rights as a Stockholder.  Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a stockholder, and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 14 of the Plan.

 

12.                               Taxes.

 

(a)                                 As a condition of the grant, vesting or exercise of an Option or Stock Purchase Right granted under the Plan, the Participant (or in the case of the Participant’s death, the person exercising the Option or Stock Purchase Right) shall make such arrangements as the Administrator may require for the satisfaction of any applicable federal, state, local or foreign withholding tax obligations that may arise in connection with such grant, vesting or exercise of the Option or Stock Purchase Right or the issuance of Shares.  The Company shall not be required to issue any Shares under the Plan until such obligations are satisfied.  If the Administrator allows the withholding or surrender of Shares to satisfy a Participant’s tax withholding obligations under this Section 12 (whether pursuant to Section 12(c), (d) or (e), or otherwise), the Administrator shall not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes.

 

(b)                                 In the case of an Employee and in the absence of any other arrangement, the Employee shall be deemed to have directed the Company to withhold or collect from his or her compensation an amount sufficient to satisfy such tax obligations from the next payroll payment otherwise payable after the date of an exercise of the Option or Stock Purchase Right.

 

(c)                                  This Section 12(c) shall apply only after the date, if any, upon which the Common Stock becomes a Listed Security.  In the case of Participant other than an Employee (or in the case of an Employee where the next payroll payment is not sufficient to satisfy such tax obligations, with respect to any remaining tax obligations), in the absence of any other arrangement and to the extent permitted under the Applicable Laws, the Participant shall be

 

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deemed to have elected to have the Company withhold from the Shares to be issued upon exercise of the Option or Stock Purchase Right that number of Shares having a Fair Market Value determined as of the applicable Tax Date (as defined below) equal to the amount required to be withheld.  For purposes of this Section 12, the Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined under the Applicable Laws (the “Tax Date”).

 

(d)                                 If permitted by the Administrator, in its discretion, a Participant may satisfy his or her tax withholding obligations upon exercise of an Option or Stock Purchase Right by surrendering to the Company Shares that have a Fair Market Value determined as of the applicable Tax Date equal to the amount required to be withheld.  In the case of shares previously acquired from the Company that are surrendered under this Section 12(d), such Shares must have been owned by the Participant for more than six (6) months on the date of surrender (or such other period of time as is required for the Company to avoid adverse accounting charges).

 

(e)                                  Any election or deemed election by a Participant to have Shares withheld to satisfy tax withholding obligations under Section 12(c) or (d) above shall be irrevocable as to the particular Shares as to which the election is made and shall be subject to the consent or disapproval of the Administrator.  Any election by a Participant under Section 12(d) above must be made on or prior to the applicable Tax Date.

 

(f)                                   In the event an election to have Shares withheld is made by a Participant and the Tax Date is deferred under Section 83 of the Code because no election is filed under Section 83(b) of the Code, the Participant shall receive the full number of Shares with respect to which the Option or Stock Purchase Right is exercised but such Participant shall be unconditionally obligated to tender back to the Company the proper number of Shares on the Tax Date.

 

13.                               Non-Transferability of Options and Stock Purchase Rights.

 

(a)                                 General.  Except as set forth in this Section 13, Options and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution.  The designation of a beneficiary by an Optionee will not constitute a transfer.  An Option or Stock Purchase Right may be exercised, during the lifetime of the holder of an Option or Stock Purchase Right, only by such holder or a transferee permitted by this Section 13.

 

(b)                                 Limited Transferability Rights.  Notwithstanding anything else in this Section 13, the Administrator may in its discretion grant Nonstatutory Stock Options that may be transferred by instrument to an inter vivos or testamentary trust in which the Options are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift or pursuant to domestic relations orders to “Immediate Family Members” (as defined below) of the Optionee. “Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the 

 

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Optionee) control the management of assets, and any other entity in which these persons (or the Optionee) own more than fifty percent of the voting interests.

 

14.                               Adjustments Upon Changes in Capitalization, Merger or Certain Other Transactions.

 

(a)                                 Changes in Capitalization.  Subject to any action required under Applicable Laws by the stockholders of the Company, the number of Shares of Common Stock covered by each outstanding award, the numbers of Shares set forth in Sections 3 and 8 above, and the number of Shares of Common Stock that have been authorized for issuance under the Plan but as to which no awards have yet been granted or that have been returned to the Plan upon cancellation or expiration of an award, as well as the price per Share of Common Stock covered by each such outstanding award, shall be proportionately adjusted for any increase or decrease in the number of issued Shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination, recapitalization or reclassification of the Common Stock, or any other increase or decrease in the number of issued Shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.”  Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares of Common Stock subject to an award.

 

(b)                                 Dissolution or Liquidation.  In the event of the dissolution or liquidation of the Company, each Option and Stock Purchase Right will terminate immediately prior to the consummation of such action, unless otherwise determined by the Administrator.

 

(c)                                  Corporate Transaction.  In the event of a Corporate Transaction (including without limitation a Change of Control), each outstanding Option or Stock Purchase Right shall be assumed or an equivalent option or right shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation (the “Successor Corporation”), unless the Successor Corporation does not agree to assume the award or to substitute an equivalent option or right, in which case such Option or Stock Purchase Right shall terminate upon the consummation of the transaction.

 

Notwithstanding the above, in the event (i) of a Change of Control, and (ii) a Participant holding an Option or Stock Purchase Right assumed or substituted by the Successor Corporation in the Change of Control, or holding Restricted Stock issued upon exercise of an Option or Stock Purchase Right with respect to which the Successor Corporation has succeeded to a repurchase right as a result of the Change of Control, is Involuntarily Terminated by the Successor Corporation at the time of, or within six months following consummation of, the transaction, then any assumed or substituted Option or Stock Purchase Right held by the terminated Participant at the time of termination shall accelerate and become exercisable as to 50% of the Shares that are unvested as of the effective date of termination, and any repurchase right applicable to any Shares shall lapse as to 50% of the Shares as to which the repurchase right

 

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have not lapsed as of the effective date of termination.  The acceleration of vesting and lapse of repurchase rights provided for in the previous sentence shall occur immediately prior to the effective date of termination of the Participant’s Continuous Service Status, and it shall be subject to the Participant executing the Company’s standard form of release of all claims agreement..

 

For purposes of this Section 14(c), an Option or a Stock Purchase Right shall be considered assumed, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction or a Change of Control, as the case may be, each holder of an Option or Stock Purchase Right would be entitled to receive upon exercise of the award the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to such transaction, the holder of the number of Shares of Common Stock covered by the award at such time (after giving effect to any adjustments in the number of Shares covered by the Option or Stock Purchase Right as provided for in this Section 14); provided that if such consideration received in the transaction is not solely common stock of the Successor Corporation, the Administrator may, with the consent of the Successor Corporation, provide for the consideration to be received upon exercise of the award to be solely common stock of the Successor Corporation equal to the Fair Market Value of the per Share consideration received by holders of Common Stock in the transaction.

 

(d)                                 Certain Distributions.  In the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Administrator may, in its discretion, appropriately adjust the price per Share of Common Stock covered by each outstanding Option or Stock Purchase Right to reflect the effect of such distribution.

 

15.                               Time of Granting Options and Stock Purchase Rights.  The date of grant of an Option or Stock Purchase Right shall, for all purposes, be the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other date as is determined by the Administrator, provided that in the case of any Incentive Stock Option, the grant date shall be the later of the date on which the Administrator makes the determination granting such Incentive Stock Option or the date of commencement of the Optionee’s employment relationship with the Company.  Notice of the determination shall be given to each Employee or Consultant to whom an Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant.

 

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16.                               Amendment and Termination of the Plan.

 

(a)                                 Authority to Amend or Terminate.  The Board may at any time amend, alter, suspend or discontinue the Plan, but no amendment, alteration, suspension or discontinuation (other than an adjustment pursuant to Section 14 above) shall be made that would materially and adversely affect the rights of any Optionee or holder of Stock Purchase Rights under any outstanding grant, without his or her consent.  In addition, to the extent necessary and desirable to comply with the Applicable Laws, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required.

 

(b)                                 Effect of Amendment or Termination.  Except as to amendments which the Administrator has the authority under the Plan to make unilaterally, no amendment or termination of the Plan shall materially and adversely affect Options or Stock Purchase Rights already granted, unless mutually agreed otherwise between the Optionee or holder of the Stock Purchase Rights and the Administrator, which agreement must be in writing and signed by the Optionee or holder and the Company.

 

17.                               Conditions Upon Issuance of Shares.  Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with the Applicable Laws, with such compliance determined by the Company in consultation with its legal counsel.  As a condition to the exercise of an Option or Stock Purchase Right, the Company may require the person exercising the award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by law. Shares issued upon exercise of awards granted prior to the date on which the Common Stock becomes a Listed Security shall be subject to a right of first refusal in favor of the Company pursuant to which the Participant will be required to offer Shares to the Company before selling or transferring them to any third party on such terms and subject to such conditions as is reflected in the applicable Option Agreement or Restricted Stock Purchase Agreement.

 

18.                               Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

 

19.                               Agreements.  Options and Stock Purchase Rights shall be evidenced by Option Agreements and Restricted Stock Purchase Agreements, respectively, in such form(s) as the Administrator shall from time to time approve.

 

20.                               Stockholder Approval.  If required by the Applicable Laws, continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted.  Such stockholder approval shall be obtained in the manner and to the degree required under the Applicable Laws.

 

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21.                               Information and Documents to Optionees and Purchasers. Prior to the date, if any, upon which the Common Stock becomes a Listed Security and if required by the Applicable Laws, the Company shall provide financial statements at least annually to each Optionee and to each individual who acquired Shares pursuant to the Plan, during the period such Optionee or purchaser has one or more Options or Stock Purchase Rights outstanding, and in the case of an individual who acquired Shares pursuant to the Plan, during the period such individual owns such Shares.  The Company shall not be required to provide such information if the issuance of Options or Stock Purchase Rights under the Plan is limited to key employees whose duties in connection with the Company assure their access to equivalent information.

 

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