Document:

Exhibit

Exhibit 4.2
Execution Version

PULMONX CORPORATION
AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT
This Amended and Restated Investors’ Rights Agreement (the “Agreement”) is made as of April 16, 2019 (the “Effective Date”), by and among Pulmonx Corporation, a Delaware corporation (the “Company”), the holders of the Company’s Series A‐1 Preferred Stock (the “Series A‐1 Preferred Stock”) set forth on Exhibit A hereto (the “Series A‐1 Holders”), the holders of the Company’s Series B‐1 Preferred Stock (the “Series B‐1 Preferred Stock”) set forth on Exhibit A hereto (the “Series B‐1 Holders”), the holders of the Company’s Series C‐1 Preferred Stock (the “Series C‐1 Preferred Stock”) set forth on Exhibit A hereto (the “Series C-1 Holders”), the holders of the Company’s Series D-1 Preferred Stock (the “Series D-1 Preferred Stock”) set forth on Exhibit A hereto (the “Series D‐1 Holders”), the holders of the Company’s Series E-1 Preferred Stock (the “Series E-1 Preferred Stock”) set forth on Exhibit A hereto (the “Series E‐1 Holders”), the holders of the Company’s Series F-1 Preferred Stock (the “Series F-1 Preferred Stock”) set forth on Exhibit A hereto (the “Series F‐1 Holders”) and the holders of the Company’s Series G-1 Preferred Stock (the “Series G-1 Preferred Stock,” and together with the Series A-1 Preferred Stock, the Series B-1 Preferred Stock, the Series C-1 Preferred Stock, the Series D-1 Preferred Stock, the Series E-1 Preferred Stock and the Series F-1 Preferred Stock, the “Preferred Stock”) set forth on Exhibit A hereto (the “Series G‐1 Holders,” and together with the Series A‐1 Holders, the Series B-1 Holders, the Series C-1 Holders, the Series D-1 Holders, the Series E-1 Holders and the Series F-1 Holders, the “Investors”), and Glendon E. French, Dr. Rodney Perkins and Michael A. Baker, each of whom is herein referred to as “Common Holder.”
RECITALS
A.    The Company, the Common Holders, the Series A-1 Holders, the Series B-1 Holders, the Series C-1 Holders, the Series D-1 Holders, the Series E-1 Holders and the Series F-1 Holders have previously entered into an Amended and Restated Investors Rights Agreement dated as of June 8, 2015 (the “Prior Rights Agreement”), pursuant to which the Company granted certain rights to the Common Holders, the Series A-1 Holders, the Series B-1 Holders, Series C-1 Holders, the Series D-1 Holders, the Series E-1 Holders and the Series F-1 Holders.
B.    The Company and the Series G-1 Holders have entered into a Series G-1 Preferred Stock  Purchase Agreement (the “Purchase Agreement”) of even date herewith pursuant to which the Company desires to sell to the Series G‐1 Holders and the Series G-1 Holders desire to purchase from the Company shares of the Series G-1 Preferred Stock.  A condition to the Series G-1 Holders’ obligations under the Purchase Agreement is that the Company, the Common Holders, and the Investors enter into this Agreement in order to provide the Series G-1 Holders with, among other rights, (i) certain rights to register shares of the Company’s Common Stock issuable upon conversion of the Series G-1 Preferred Stock held by the Series G-1 Holders, (ii) certain rights to receive or inspect information pertaining to the Company and (iii) a right of first offer with respect to certain issuances by the Company of its

securities.  The Company, the Common Holders, the Series A-1 Holders, the Series B-1 Holders, the Series C-1 Holders, the Series D-1 Holders, the Series E-1 Holders and the Series F-1 Holders each desire to induce the Series G-1 Holders to purchase shares of Series G-1 Preferred Stock pursuant to the Purchase Agreement by agreeing to the terms and conditions set forth herein.
C.    The Company, the Common Holders, the Series A-1 Holders, the Series B-1 Holders, the Series C-1 Holders, the Series D-1 Holders, the Series E-1 Holders and the Series F-1 Holders each desire to amend and restate the Prior Rights Agreement to add the Series G-1 Holders as parties to this Agreement and make certain other changes.
AGREEMENT
The parties hereby agree as follows:
A.    Amendments of Prior Rights Agreement; Waiver of Right of First Offer.  Effective and contingent upon execution of this Agreement by the Company and the holders of at least a majority of the then outstanding shares of Preferred Stock, voting together as a single class, and upon 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 Common Holders and the Investors hereby agree to be bound by the provisions hereof as the sole agreement of the Company, the Common Holders and the Investors with respect to registration rights of the Company’s securities and certain other rights, as set forth herein.  The Major Investors (as defined herein) 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 G-1 Preferred Stock.
1.    Registration Rights.  The Company and the Investors covenant and agree as follows:
1.1    Definitions.  For purposes of this Section 1:
(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 “Common Holders’ Stock” means the shares of Common Stock issued to the Common Holders;

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(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 “Qualified IPO” has the meaning given to such term in the Restated Certificate;
(f)    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;
(g)    The term “Registrable Securities” means (i) the shares of Common Stock issuable or issued upon conversion of (I) the Series A-1 Preferred Stock, (II) the Series B‐1 Preferred Stock (including the Series B‐1 Preferred Stock issuable or issued upon exercise of the warrants to purchase Series B‐1 Preferred Stock), (III) the Series C‐1 Preferred Stock (including the Series C‐1 Preferred Stock issuable or issued upon exercise of the warrants to purchase Series C‐1 Preferred Stock), (IV) the Series D-1 Preferred Stock, (V) the Series E-1 Preferred Stock, (VI) the Series F-1 Preferred Stock and (VII) the Series G-1 Preferred Stock, in each case, other than shares for which registration rights have terminated pursuant to Section 1.15 hereof, provided, however, that for purposes of Section 1.2, the shares of Common Stock issuable or issued upon conversion of the Series B-1 Preferred Stock issuable to Silicon Valley Bank (“SVB”) upon exercise of its warrant shall not be deemed Registrable Securities and SVB shall not be deemed a Holder; (ii) the shares of Common Holders’ Stock, provided, however, that for the purposes of Section 1.2, 1.4 or 1.13, the Common Holders’ Stock shall not be deemed Registrable Securities and the Common Holders shall not be deemed Holders; and (iii) 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) and (ii); provided, however, that the foregoing definition shall exclude in all cases any Registrable Securities sold by a person in a transaction in 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, and (C) the Holder thereof is entitled to exercise any right provided in Section 1 in accordance with Section 1.15 below;
(h)    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;

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(i)    The term “Restated Certificate” means the Company’s Amended and Restated Certificate of Incorporation, as amended from time to time;
(j)    The term “SEC” means the Securities and Exchange Commission; and
(k)    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 fifth anniversary date of this 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 at least 25% of the Registrable Securities then outstanding (or a lesser percent if the anticipated aggregate offering price, net of underwriting discounts and commissions, would exceed $10,000,000), 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 its reasonable best efforts to file as soon as practicable, and in any event within 90 days of the receipt of such request, a registration statement under the Securities Act covering all Registrable Securities which the Holders request to be registered within 20 days of 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 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

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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 shareholders 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, 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
(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.  If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for shareholders 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, or a registration in which the only stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered), 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, cause to be registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered.
1.4    Form S-3 Registration.  In case the Company shall receive from any Holder or Holders of not less than 25% of the Registrable Securities then outstanding, a written

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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)    as soon as practicable, 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 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 $1,000,000; (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 shareholders 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 twelve (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

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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; provided, however, that such 120 day period shall be extended for a period of time equal to the period a Holder refrains from selling any securities included in such registration at the request of the underwriters.
(c)    Furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus and any issuer free writing 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 reasonable 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.
(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.

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(i)    Use its reasonable best 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.
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 exceeding $35,000 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.
(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 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 exceeding $35,000 of one counsel for the selling Holder or Holders selected

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by them with the approval of the Company, which approval shall not be unreasonably withheld, shall be borne by the Company.
(c)    Registration on Form S-3.  All expenses other than underwriting discounts and commissions incurred in connection with a registration requested pursuant to Section 1.4, including all registration, filing, qualification, printers’ and accounting fees and the reasonable fees and disbursements not exceeding $35,000 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.
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 shareholders 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 shareholders according to the total amount of securities entitled to be included therein owned by each selling shareholder or in such other proportions as shall mutually be agreed to by such selling shareholders) but in no event shall (i) the amount of securities of the selling Holders included in the offering be reduced below 20% 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 shareholders may be excluded if the underwriters make the determination described above and no other shareholder’s securities are included, (ii) any securities held by a Common Holder be included if any securities held by any other selling Holder are excluded or (iii) any securities of any other shareholders be included in the offering if any securities of the Holders are excluded from the offering.  For purposes of the preceding parenthetical concerning apportionment, for any selling shareholder which is a holder of Registrable Securities and which is a partnership or corporation, the partners, retired partners and shareholders of such holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling shareholder,” and any pro-rata reduction with respect to such “selling shareholder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling shareholder,” as defined in this sentence.
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.

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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 (or incorporated by reference therein), including any preliminary prospectus, issuer free writing 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 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

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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 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) 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 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.

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(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 or any similar or analogous rule promulgated under the Securities Act, 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 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 100,000 shares (or if less than 100,000 shares, all of the shares held by such Holder) of such securities (subject to adjustment for stock splits, stock dividends, reclassification or the like), (ii) that is a subsidiary, parent, partner, limited partner, retired partner, member, retired member or shareholder of a Holder, (iii) that is an affiliated fund or entity of the Holder, which means with respect to a limited liability company or a limited liability partnership, a fund or entity managed by the same manager or managing member or

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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 (such a fund or entity, an “Affiliated Fund”), (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), (v) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member or (vi) that is an affiliate of the Holder, 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 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 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 holders of at least a majority of the then outstanding shares of Preferred Stock, voting together as a single class, 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 filed under Section 1.2 hereof, 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 his securities will not reduce the amount of the Registrable Securities of the Holders which is included, (b) to make a demand registration which could result in such registration statement being declared effective prior to the earlier of either of the dates set forth in subsection 1.2(a) or within 120 days of the effective date of any registration effected pursuant to Section 1.2 or (c) not to be bound by the obligations of the Holders set forth in the reimbursement provision of Section 1.7(a) and Sections 1.8, 1.10 or 1.14.
1.14    Lock-Up Agreement.
(a)    Lock-Up Period; Agreement.  Subject to Section 1.14(b), 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 plus up to an additional 18 days to the extent requested by such managing underwriter in order to address Rule

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2241 of the Financial Industry Regulatory Authority, Inc. or NYSE Rule 472(f)(4) or any similar successor provisions) 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.  Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Company stockholders that are subject to such agreements, based on the number of shares subject to such agreements.
(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 of the Company 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.
(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 prior to the Company’s initial public offering 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.
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) such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares 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.  The Company shall deliver to each person (other than a person reasonably deemed by the Company to be a competitor of the Company, provided that in no event shall Boston Scientific Corporation (“BSC”) and any of its affiliates, or RTW Master Fund, Ltd. or RTW Innovation Master Fund, Ltd. (together, the “RTW Funds”) or any of their respective affiliates, be deemed to be a competitor of the Company) who holds at least 4,000,000 shares of Preferred Stock or the Common Stock issued upon conversion thereof (subject to adjustment for stock splits, stock dividends, reclassifications or the like):
(a)    as soon as practicable, but in any event within 90 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 shareholder’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

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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 income statement for such fiscal quarter, a statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter;
(c)    within thirty (30) days of the end of each month, an unaudited income statement and a statement of cash flows and balance sheet for and as of the end of such month, in reasonable detail; and
(d)    as soon as practicable, but in any event at least thirty (30) days prior to the end of each fiscal year, a budget and business plan for the new fiscal year, prepared on a monthly basis, and, as soon as prepared, any other budgets or revised budgets prepared by the Company.
2.2    Inspection.  The Company shall permit each Major Investor (as such term is defined in Section 2.4) (except for a Major Investor reasonably deemed by the Company to be a competitor of the Company, provided that in no event shall BSC and any of its affiliates, or the RTW Funds or any of their respective affiliates, be deemed to be a competitor of the Company), at such Holder’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 to provide access to any information to the extent that the Board of Directors determines in good faith that withholding such information is required (a) to preserve the attorney-client privilege between the Company and its legal counsel, (b) to protect disclosure of trade secrets under circumstances that might jeopardize the Company's ability to claim or take advantage of any trade secret protection law or other similar protection, (c) to avoid disclosure of competitively sensitive information to a competitor of the Company; provided that in no event shall BSC and any of its affiliates be deemed to be a competitor of the Company, (d) to avoid a violation of any law or the fiduciary duties of the Board of Directors, (e) to avoid disclosure of information that represents a potential or actual conflict between the interests of the Company and the interests of BSC or (f) to preserve the confidentiality of personnel matters.
2.3    Board Observer. 
(a)    So long as BSC continues to own at least 15,151,515 shares of Series F-1 Preferred (as adjusted for any stock dividend, stock split, combination of shares, reorganization, recapitalization, reclassification or other similar event), then (i) one (1) representative of BSC (the “BSC Board Observer”) shall be permitted to attend each meeting of the Board of Directors in a nonvoting observer capacity and to participate in all discussions during each such meeting, (ii) the Company shall send to the BSC Board Observer the notice of the time and place of any such meeting in the same manner and at the same time as it shall send such notice to its directors and (iii) the Company shall also provide to the BSC Board Observer

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copies of all notices, reports, minutes, consents and other materials and information given to the members of the Board of Directors in connection with any such meeting at the same time and in the same manner as they are provided to the members of the Board of Directors; provided, however, that the BSC Board Observer shall not be entitled to receive any notices, reports, minutes, consents or other materials or information, or be in attendance for any meeting (or any portion thereof) of the Board of Directors if the Board of Directors determines in good faith that withholding such information is required (a) to preserve the attorney-client privilege between the Company and its legal counsel, (b) to protect disclosure of trade secrets under circumstances that might jeopardize the Company's ability to claim or take advantage of any trade secret protection law or other similar protection, (c) to avoid a violation of any law or the fiduciary duties of the Board of Directors or (d) to avoid disclosure of information that represents a potential or actual conflict between the interests of the Company and the interests of BSC.
(b)    So long as Kaiser Permanente Ventures LLC - Series A, Kaiser Permanente Ventures LLC - Series B, The Permanente Federation LLC – Series I and The Permanente Federation LLC – Series J (together, the “Kaiser Funds”) continue to own at least 1,725,608 shares of Preferred Stock (as adjusted for any stock dividend, stock split, combination of shares, reorganization, recapitalization, reclassification or other similar event), then (i) one (1) representative of the Kaiser Funds (the “Kaiser Board Observer”) shall be permitted to attend each meeting of the Board of Directors in a nonvoting observer capacity and to participate in all discussions during each such meeting, (ii) the Company shall send to the Kaiser Board Observer the notice of the time and place of any such meeting in the same manner and at the same time as it shall send such notice to its directors and (iii) the Company shall also provide to the Kaiser Board Observer copies of all notices, reports, minutes, consents and other materials and information given to the members of the Board of Directors in connection with any such meeting at the same time and in the same manner as they are provided to the members of the Board of Directors; provided, however, that the Kaiser Board Observer shall not be entitled to receive any notices, reports, minutes, consents or other materials or information, or be in attendance for any meeting (or any portion thereof) of the Board of Directors if the Board of Directors determines in good faith that withholding such information is required (a) to preserve the attorney-client privilege between the Company and its legal counsel, (b) to protect disclosure of trade secrets under circumstances that might jeopardize the Company's ability to claim or take advantage of any trade secret protection law or other similar protection, (c) to avoid a violation of any law or the fiduciary duties of the Board of Directors or (d) to avoid disclosure of information that represents a potential or actual conflict between the interests of the Company and the interests of the Kaiser Funds.
(c)    So long as Shea Ventures Opportunity Fund II, LP, Shea Ventures LLC, and Survivor’s Trust U/A Eighth – E&M Shea Revocable Trust (together, the “Shea Funds”) continue to own at least 1,334,736 shares of Preferred Stock (as adjusted for any stock dividend, stock split, combination of shares, reorganization, recapitalization, reclassification or other similar event), then (i) one (1) representative of the Shea Funds (the “Shea Board Observer”) shall be permitted to attend each meeting of the Board of Directors in a nonvoting observer capacity and to participate in all discussions during each such meeting, (ii) the Company shall send to the Shea Board Observer the notice of the time and place of any such

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meeting in the same manner and at the same time as it shall send such notice to its directors and (iii) the Company shall also provide to the Shea Board Observer copies of all notices, reports, minutes, consents and other materials and information given to the members of the Board of Directors in connection with any such meeting at the same time and in the same manner as they are provided to the members of the Board of Directors; provided, however, that the Shea Board Observer shall not be entitled to receive any notices, reports, minutes, consents or other materials or information, or be in attendance for any meeting (or any portion thereof) of the Board of Directors if the Board of Directors determines in good faith that withholding such information is required (a) to preserve the attorney-client privilege between the Company and its legal counsel, (b) to protect disclosure of trade secrets under circumstances that might jeopardize the Company's ability to claim or take advantage of any trade secret protection law or other similar protection, (c) to avoid a violation of any law or the fiduciary duties of the Board of Directors or (d) to avoid disclosure of information that represents a potential or actual conflict between the interests of the Company and the interests of the Shea Funds.
2.4    Right of First Offer.
(a)    The Company hereby grants to ABG-Pulmonx Limited (“ABG”) a primary right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined) of up to 50% of the Shares offered at such future sale (the “ABG Pro Rata”) until ABG has purchased $50,000,000 in aggregate of equity securities of the Company, whether pursuant to the ABG Pro Rata or otherwise, and which shall include the Stock (as defined in Purchase Agreement) purchased by ABG pursuant to the Purchase Agreement (the “ABG Limit”) in accordance with the provisions of Section 2.4(a)(i) and (ii). 
(i)    The Company shall deliver a notice (the “ABG RFO Notice”) to ABG stating (i) its bona fide intention to offer such Shares, (ii) the price and terms, if any, upon which it proposes to offer such Shares and (iii) the maximum number of Shares that ABG may purchase under its ABG Pro Rata (the “ABG Maximum Shares”).
(ii)    Within 10 business days after delivery of the ABG RFO Notice (the “ABG Pro Rata Period”), ABG may elect to purchase or obtain, at the price and on the terms specified in the ABG RFO Notice, up to the ABG Maximum Shares. 
(b)    Subject to the terms and conditions specified in this Section 2.4, and after the ABG Pro Rata Period, the Company hereby grants to each Major Investor (as hereinafter defined) a secondary right of first offer with respect to future sales by the Company of its Shares.  For purposes of this Section 2.4, a “Major Investor” shall mean any person who holds at least 500,000 shares of Preferred Stock or the Common Stock issued upon conversion thereof (subject to adjustment for stock splits, stock dividends, reclassifications or the like).  For purposes of this Section 2.4, the definition of Major Investor includes any general partners, managing members or 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 ABG until it has reached the ABG Limit in accordance with Section 2.4(a) and then to each Major Investor in accordance with the following provisions:
(c)    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, excluding any Shares that may be sold pursuant to Section 2.4(a).
(d)    Within 10 business 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 of all convertible securities then held, by such Major Investor bears to the total number of shares of Common Stock then outstanding (assuming full conversion and exercise of all outstanding convertible or exercisable securities).  The Company shall promptly, in writing, inform ABG of any other Major Investor’s failure to elect to purchase all the shares available to it.  During the 10-business-day period commencing after receipt of such information, ABG shall be entitled to elect to purchase or obtain that portion of the Shares for which all Major Investors were entitled to subscribe but which were not subscribed for by the Major Investors up to the ABG Limit (the “ABG Under-Subscription Right”). Following such 10-day-business period in the preceding sentence, the Company shall promptly, in writing, inform each Major Investor (other than ABG) that elects to purchase all the shares available to it (each, a “Fully-Exercising Investor”) of any other Major Investor’s failure to do likewise. During the subsequent 10-day-business period after receipt of such information, each Fully-Exercising Investor shall be entitled to elect to purchase or obtain the remaining portion of the Shares (after taking into account any Shares purchased by ABG under this Section 2.4(d)) for which all 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 of all convertible securities then held, by such Fully-Exercising Investor bears to the total number of shares of Common Stock (assuming full conversion of all outstanding convertible securities then outstanding) held by all Fully Exercising Investors. In the event that ABG does not purchase all of ABG’s pro rata amount of the Shares allocated to ABG under the ABG Pro Rata and ABG Under-Subscription Right up to the ABG Limit, then the rights afforded to ABG under the ABG Pro Rata and the ABG Under-Subscription Right shall terminate; provided however, that ABG shall be able to participate in any rights of first offer that are generally afforded to the Major Investors. 
(e)    The Company may, during the 45 calendar day period following the expiration of the period provided in subsection 2.4(d) hereof, offer the remaining unsubscribed portion of the Shares to any persons or entities at a price not less than, and upon terms no more favorable to the offeree than those specified in the RFO Notice.  No Major Investor that has elected to purchase or otherwise obtain any such Shares pursuant to the exercise of the right of first offer set forth in this Section 2.4 shall be obligated to consummate such

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purchase or acquisition unless and until such Shares available for issuance or sale to such persons or entities have actually been issued or sold in accordance with the terms set forth in the RFO Notice, in which event a closing with respect to both the purchase by such Major Investors and such persons or entities shall occur simultaneously.  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 calendar 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.
(f)    The right of first offer in this Section 2.4 shall not be applicable to, and the definition of “Shares” shall not include any securities issued as a result of, (i) the issuance of securities in connection with stock dividends, stock splits or similar transactions; (ii) the issuance or sale of Common Stock (or options therefor) to employees, consultants and directors of the Company, directly or pursuant to a stock option plan, restricted stock plan or other similar plan or agreement, which issuance and plan or agreement are approved by the Board of Directors; (iii) the issuance of capital stock, or options or warrants to purchase capital stock, to financial institutions or lessors in connection with commercial credit arrangements, equipment financings, commercial property lease transactions or similar transactions, the terms of which issuances and transactions are approved by the Board of Directors; (iv) the issuance of securities in connection with bona fide acquisitions of other corporations or entities pursuant to a merger, consolidation, purchase of assets, reorganization or similar transactions in which the Company acquires all or substantially all of the assets of such corporation or entity or 50% or more of the equity ownership in such corporation or entity, the terms of which issuance and transaction are approved by the Board of Directors; (v) the issuance of Common Stock issuable upon conversion of the Preferred Stock; (vi) the consummation of a Qualified IPO; (vii) the issuance of securities to an entity as a component of any corporate strategic relationship with such entity primarily for the purpose of (A) joint venture, technology licensing or development activities, (B) distribution, supply or manufacture of the Company’s products or services or (C) any other arrangements involving corporate partners that are primarily for purposes other than raising capital, the terms of which issuance to and business relationship with such entity are approved by the Board of Directors; (viii) the issuance of shares of Common Stock or Preferred Stock issued or issuable upon exercise of warrants or options outstanding as of the Effective Date; (ix) the issuance of shares of Common Stock issued or issuable in connection with any transaction where the securities so issued are excepted from the definition “Shares” as it pertains to the rights of first offer pursuant to this Section 2.4 by (Y) the holders of at least a majority of the then outstanding shares of Preferred Stock, voting together as a single class, and (Z) a majority of the Preferred Directors (as such term is defined in the Restated Certificate); and (x) the issuance of shares of Series G-1 Preferred Stock pursuant to the Purchase Agreement.  In addition to the foregoing, the right of first offer in this Section 2.4 shall not be applicable with respect to any Major Investor and any subsequent securities issuance, if (i) at the time of such subsequent securities issuance, the Major Investor is not an “accredited investor,” as that term is then defined in Rule 501(a) under the Securities Act, and (ii) such subsequent securities issuance is otherwise being offered only to accredited investors.

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(g)    The right of first offer of each Major Investor under this Section 2.4 may be assigned to the same parties, subject to the same restrictions, as any assignment of registration rights pursuant to Section 1.12.
2.5    Director and Officer Liability Insurance.  The Company will maintain director and officer liability insurance with levels of coverage of at least $1 million and otherwise as deemed customary and appropriate by the Company’s Board of Directors.
2.6    Qualified Small Business Stock Status.  In the event that the Company proposes to take an action or engage in a transaction that would reasonably be expected to result in the Preferred Stock no longer being “qualified small business stock” within the meaning of Section 1202(c) of the Internal Revenue Code of 1986, as amended (the “Code”), the Company shall notify the Investors and consult in good faith to devise a mutually agreeable and reasonable alternative course of action or transaction structure that would preserve such status.
2.7    Confidential Information and Invention Agreement.  The Company shall require all employees and consultants to execute and deliver a Confidential Information and Invention Agreement substantially in a form approved by the Company’s counsel or Board of Directors.
2.8    Affiliate Transactions.  The Company shall not, directly or indirectly, engage in any transaction with any officer, director, employee, stockholder or affiliate of the Company (other than transactions relating to existing agreements with such person) unless approved by the Board of Directors, not including the vote of any interested director.
2.9    Directors' Expenses.  The reasonable out-of-pocket and travel expenses of any non-employee directors that are incurred in attending Board meetings (or meetings of committees thereof) or in connection with the performance of their duties as directors shall be paid or reimbursed promptly by the Company.  Such expenses shall likewise be reimbursed when incurred by (i) the non-voting representative selected by HealthCap V L.P. (“HealthCap”) pursuant to paragraph 3 of the Management Rights Letter dated as of February 9, 2010, in attending Board meetings not attended by the director designated by HealthCap pursuant to Section 1.1(e) of the Amended and Restated Voting Agreement dated as of the date hereof (the “A&R Voting Agreement”) and (ii) the BSC Board Observer selected by BSC, the Kaiser Board Observer selected by the Kaiser Funds and the Shea Board Observer selected by the Shea Funds pursuant to Section 2.3 of this Agreement, in attending Board meetings.  The Board of Directors will establish a budget for out-of-pocket and travel expenses, with the understanding that only those expenses incurred up to the established budget will be reimbursed by the Company pursuant to this Section 2.10.
2.10    Termination of Covenants.
(a)    The covenants set forth in Sections 2.1 through Section 2.9 shall terminate as to each Holder and be of no further force or effect (i) immediately prior to the consummation of an initial public offering, and (ii) upon termination of the Agreement, as provided in Section 3.1.

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(b)    The covenants set forth in Sections 2.1 and 2.2 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 2.11(a) above.
3.    Miscellaneous.
3.1    Termination.  This Agreement shall terminate, and have no further force and effect, upon the consummation of a transaction or series of related transactions deemed to be a Liquidation Transaction (as such term is defined in the Restated Certificate) in connection with which the shareholders of the Company receive cash and/or unrestricted securities that are actively traded on a national securities exchange and are of an entity subject to and in compliance with the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act.
3.2    Entire Agreement.  This Agreement 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, including the Prior Rights Agreement.
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 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 (i) the Company and (ii) the holders of at least a majority of the then outstanding shares of Preferred Stock, voting together as a single class; provided, that if such amendment or waiver has the effect of affecting the Common Holders’ Stock (i) in a manner different than securities issued to the Investors and (ii) in a manner adverse to the interests of the holders of the Common Holders’ Stock, then such amendment shall require the consent of the holder or holders of a majority of the Common Holders’ Stock then providing services to the Company as officers, employees or consultants; provided further, that no such amendment or waiver shall adversely affect any Investor in a different or disproportionate manner relative to the other Investors of the same class or series unless such amendment or waiver is agreed to in writing by such adversely and differently/disproportionately affected Investor; provided further, that no such amendment or waiver shall adversely affect any Major Investor in a different or disproportionate manner relative to the other Major Investors unless such amendment or waiver is agreed to in writing by such adversely and differently/disproportionately affected Major Investor; and provided further, that the Company shall provide prior written notice to BSC of any amendment or waiver of this Agreement at the same time the Company seeks any other Investor’s consent for such amendment or waiver.  Without limiting the generality of the foregoing proviso, if such

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amendment or waiver materially and adversely affects the rights of BSC as set forth in Sections 2.1, 2.2, 2.3, 2.5 and 2.10, the rights of the RTW Funds as set forth in Section 2.1 or 2.2, the rights of the Kaiser Funds in Section 2.3, or the rights of the Shea Funds in Section 2.3, in a manner different or disproportionate relative to the other Investors or amends or waives this sentence, such amendment or waiver will require the separate written approval of BSC, the Kaiser Funds, the Shea Funds or the RTW Funds, as applicable.  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.
3.5    Notices.  Unless otherwise provided, any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by overnight courier or sent by facsimile or other form of electronic transmission (upon customary confirmation of receipt), or 48 hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address as set forth on Exhibit A hereto or as subsequently modified by written notice complying with this Section 3.5.
3.6    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.
3.7    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.
3.8    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. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
3.9    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.
3.10    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.
[Signature Pages Follow.]

-22-

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

	 

	PULMONX CORPORATION

	 
	 

	 
	 

	By:
	/s/ Glendon E. French

	Name:
	Glendon E. French

	Title:
	Chief Executive Officer

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 
	 

	 
	 

	By:
	/s/ Glendon E. French

	Name:
	Glendon E. French

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 
	 

	 
	 

	By:
	/s/ Rodney Perkins

	Name:
	Rodney C. Perkins, M.D.

	 
	 

	 
	 

	 
	 

	RODNEY C. PERKINS, AS TRUSTEE OF THE PERKINS FAMILY REVOCABLE TRUST, DATED FEBRUARY 28, 1986

	 
	 

	 
	 

	By:
	/s/ Rodney Perkins

	Name:
	Rodney C. Perkins, M.D.

	Title:
	Trustee

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	ABG-PULMONX LIMITED

	 
	 

	 
	 

	By:
	/s/ Andrew Pang

	Name:
	Andrew Pang

	Title:
	Director

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	ABG YY LIMITED

	 
	 

	 
	 

	By:
	/s/ HAO Xiaohui

	Name:
	HAO Xiaohui

	Title:
	Director

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	RTW MASTER FUND, LTD.

	 
	 

	 
	 

	By:
	/s/ Roderick Wong

	Name:
	Roderick Wong, M.D.

	Title:
	Director

	 
	 

	 
	 

	 
	 

	RTW INNOVATION MASTER FUND, LTD.

	 
	 

	 
	 

	By:
	/s/ Roderick Wong

	Name:
	Roderick Wong, M.D.

	Title:
	Director

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	 

	MERIDIAN SMALL CAP GROWTH FUND

	 
	 

	By: its Investment Adviser
ArrowMark Colorado Holdings, LLC

	 
	 

	 
	 

	By:
	/s/ David Corkins

	Name:
	David Corkins

	Title:
	Managing Member

	 
	 

	 
	 

	ARROWMARK LIFE SCIENCE FUND, LP

	 
	 

	By: its General Partner
AMP Life Science GP, LLC

	 
	 

	 
	 

	By:
	/s/ David Corkins

	Name:
	David Corkins

	Title:
	Managing Member

	 
	 

	 
	 

	ARROWMARK FUNDAMENTAL
OPPORTUNITY FUND L.P.

	 

	By: its General Partner
ArrowMark Partners GP, LLC

	 
	 

	 
	 

	By:
	/s/ David Corkins

	Name:
	David Corkins

	Title:
	Managing Member

SIGNATURE PAGE TO 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:

	 

	LVP LIFE SCIENCE VENTURES III, L.P.

	 
	 

	By:
	LVP GP III, LLC

	Its:
	General Partner

	 
	 

	By:
	/s/ Patrick F. Latterell

	Name:
	Patrick F. Latterell

	Title:
	Managing Member

	 
	 

	 
	 

	LVP III ASSOCIATES, L.P.

	 
	 

	By:
	LVP GP III, LLC

	Its:
	General Partner

	 
	 

	By:
	/s/ Patrick F. Latterell

	Name:
	Patrick F. Latterell

	Title:
	Managing Member

	 
	 

	 
	 

	LVP III PARTNERS, L.P.

	 

	By:
	LVP GP III, LLC

	Its:
	General Partner

	 
	 

	By:
	/s/ Patrick F. Latterell

	Name:
	Patrick F. Latterell

	Title:
	Managing Member

SIGNATURE PAGE TO 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:

	 

	KAISER PERMANENTE VENTURES LLC – SERIES A

	 
	 

	 
	 

	By:
	/s/ Thomas Meier

	Name:
	Thomas Meier

	Title:
	SVP & Treasurer

	 
	 

	 
	 

	 
	 

	THE PERMANENTE FEDERATION LLC – SERIES I

	 
	 

	 
	 

	By:
	/s/ Pauline Fox

	Name:
	Pauline Fox

	Title:
	EVP & CLO

	 
	 

	 
	 

	 
	 

	THE PERMANENTE FEDERATION LLC – SERIES J

	 

	 

	By:
	/s/ Pauline Fox

	Name:
	Pauline Fox

	Title:
	EVP & CLO

	 
	 

	 
	 

	 
	 

	KAISER PERMANENTE VENTURES LLC – SERIES B

	 
	 

	 
	 

	By:
	/s/ Thomas Meier

	Name:
	Thomas Meier

	Title:
	Member, Management Committee

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	SHEA VENTURES OPPORTUNITY FUND II, LP

	 
	 

	By:
	SVO GP II, LLC

	Its:
	General Partner

	 
	 

	 
	 

	By:
	/s/ Jason Schoettler

	Name:
	 

	Title:
	 

	 
	 

	 
	 

	SHEA VENTURES LLC

	 

	 

	By:
	/s/ John Morrissey

	Name:
	John Morrissey

	Title:
	Managing Director

	 
	 

	 
	 

	SURVIVOR’S TRUST U/A EIGHTH- E&M SHEA
REVOCABLE TRUST

	 
	 

	 
	 

	By:
	/s/ John Morrissey

	Name:
	John Morrissey

	Title:
	Trustee

SIGNATURE PAGE TO 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:

	 

	MONTREUX EQUITY PARTNERS II SBIC, L.P.

	 
	 

	By:
	Montreux Equity Management II, LLC

	Its:
	General Partner 

	 
	 

	 
	 

	By:
	/s/ Daniel K. Turner III

	Name:
	Daniel K. Turner III

	Title:
	Managing Member

	 
	 

	 
	 

	 
	 

	MONTREUX EQUITY PARTNERS III SBIC, L.P.

	 
	 

	By:
	Montreux Equity Management III, LLC

	Its:
	General Partner 

	 
	 

	 
	 

	By:
	/s/ Daniel K. Turner III

	Name:
	Daniel K. Turner III

	Title:
	Managing Member

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	DE NOVO VENTURES III LIQUIDATING TRUST

	 
	 

	By:
	/s/ Richard Ferrari

	Name:
	Richard Ferrari

	Title:
	Managing Director

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	HEALTHCAP V L.P.

	 
	 

	By:
	HealthCap V GP SA

	Its:
	General Partner

	 
	 

	 
	 

	By:
	/s/ Dag Richter                    /s/ Fabrice Bernhard

	Name:
	Dag Richter                              Fabrice Bernhard

	Title:
	Director                                    General Manager

	 
	 

	 
	 

	 
	 

	OFP V ADVISOR AB, as a member and on behalf
of all members, if any, of OFCO ClubV

	 
	 

	 
	 

	By:
	/s/ Staffan Lindstrand

	Name:
	Staffan Lindstrand

	Title:
	Partner

	 
	 

	 
	 

	By:
	/s/ Per Samuelsson

	Name:
	Per Samuelsson

	Title:
	Partner

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	KPCB HOLDINGS, INC.,
as nominee

	 
	 

	By:
	/s/ Jason Doren

	Name:
	Jason Doren

	Title:
	President

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

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

	 

	BOSTON SCIENTIFIC CORPORATION

	 
	 

	By:
	/s/ Art Butcher

	Name:
	Art Butcher

	Title:
	SVP & President

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of April 25, 2019.
	
		
	INVESTOR:

	 

	MONTREUX GROWTH PARTNERS II, L.P.

	 

	By:
	Montreux Growth Management II, LLC

	Its:
	General Partner

	 
	 

	 
	 

	By:
	/s/ Daniel K. Turner III

	Name:
	Daniel K. Turner III

	Title:
	Managing Member

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of April 25, 2019.
	
		
	INVESTOR:

	 

	ASHLAND UNIVERSITY

	 

	 

	By:
	/s/ Marc P. Pasteris

	Name:
	Marc P. Pasteris

	Title:
	Vice President and Chief Financial Officer

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

The parties have executed this Amended and Restated Investors’ Rights Agreement as of April 25, 2019.
	
		
	INVESTOR:

	 

	DRIEHAUS LIFE SCIENCES FUND, L.P.

	 

	By:
	/s/ Janet McWilliams

	Name:
	Janet McWilliams

	Title:
	Senior Vice President of Driehaus Capital Management (USVI) LLC, General Partner

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

Exhibit A
Series A-1 Holders
Dr. David C. Auth
Michael A. and Jan M. Baker
Jan P. Barker
Boston Scientific Corporation
Bowman Living Trust
Harry B. Bremond Sep Prop Trust
Fred & Melody Bubank Family Trust
Buch Revocable Trust
Annette Campbell-White
Andrew Chase
George Y. Choi
Charles R. Clark III
Morgan Stanley Smith Barney LLC, Custodian
For F/B/O Ronald C. Conway IRA
Wallace H. Coulter Foundation
CVF, LLC
De Novo Ventures III Liquidating Trust
DeSoto Securities Company
Carol Dickey
Edgemere LLC
Frank M. Fischer
Peggy Woodford Forbes Sep Prop Trust
The Gould Family 1994 Trust
Robert & Susan Green Revocable Trust
James E. Guth Revocable Trust
James E. Guth, IRA
Ephraim Heller, Trustee, Ephraim Heller Sep. Prop Trust dated 10-6-06
Higgerson Revocable Trust UAD 4/6/90
David R. Holbrooke
David Reese Holbrooke Rev. Trust
Grant M. Inman & Suanne B. Inman,
Trustees Inman Living Trust
Amir P. Izadpanah
Susan Jackson Trust dated September 15, 1989
Jupiter Partners
Christopher Kaster
LVP Life Science Ventures III, L.P.
LVP III Associates, L.P.
LVP III Partners, L.P.
Leerink Revelation Healthcare Fund I, L.P.
Charles T. Liamos

A-1

Limit & Co.
Allan May Revocable Trust
James Meyer
Christopher Meyer Trust
Momsen Living Trust U/A/D 1/5/95
Montreux Equity Partners II SBIC, L.P.
Montreux Equity Partners III SBIC, L.P.
Robert Moreland
Philip E. Oyer
Penn Mutual Life Insurance Co.
Permalon Ltd.
Phoenix Companies, Inc. Employee Pension Plan Trust
Phoenix Life Insurance Company
Phoenix Life Insurance Company Employee Pension Plan
Stuart Mark Rosenberg
Shea Ventures LLC
Survivor’s Trust U/A Eighth-E & M Shea Revocable Trust
Daniel R. Skimore
Stetson Capital Fund, L.P.
Hira Thapliyal
Sally Goodwin Tully
US Bank National Association, Trustee of the 
Allete and Affiliate Companies Master Pension Trust
The Van Ness 1983 Revocable Trust
PENSCO Trust Company LLC Custodian FBO
William D. Van Ness IRAWS Investment Co, LLC (2002A)
WS Investment Co, LLC (2002C)
Series B-1 Holders
Michael A. and Jan M. Baker
Jan P. Barker
Boston Scientific Corporation
Bowman Living Trust
Harry B. Bremond Sep Prop Trust
Fred & Melody Bubank Family Trust
Buch Revocable Trust
Annette Campbell-White
Andrew Chase
George Y. Choi
Charles R. Clark III
Morgan Stanley Smith Barney LLC, Custodian
For F/B/O Ronald C. Conway IRA
Wallace H. Coulter Foundation
CVF, LLC
De Novo Ventures III Liquidating Trust

A-2

DeSoto Securities Company
Carol Dickey
Edgemere LLC
Frank M. Fischer
Peggy Woodford Forbes Sep Prop Trust
The Gould Family 1994 Trust
Robert & Susan Green Revocable Trust
James E. Guth Revocable Trust
James E. Guth, IRA
Ephraim Heller, Trustee, Ephraim Heller Sep. Prop Trust dated 10-6-06
Higgerson Revocable Trust UAD 4/6/90
David R. Holbrooke
David Reese Holbrooke Rev. Trust
Grant M. Inman & Suanne B. Inman,
Trustees Inman Living Trust
Amir P. Izadpanah
Susan Jackson Trust dated September 15, 1989
Jupiter Partners
Christopher Kaster
LVP Life Science Ventures III, L.P.
LVP III Associates, L.P.
LVP III Partners, L.P.
Leerink Revelation Healthcare Fund I, L.P.
Charles T. Liamos
Limit & Co.
Allan May Revocable Trust
James Meyer
Christopher Meyer Trust
Momsen Living Trust U/A/D 1/5/95
Montreux Equity Partners II SBIC, L.P.
Montreux Equity Partners III SBIC, L.P.
Robert Moreland
Philip E. Oyer
Penn Mutual Life Insurance Co.
Permalon Ltd.
Phoenix Companies, Inc. Employee Pension Plan Trust
Phoenix Life Insurance Company
Phoenix Life Insurance Company Employee Pension Plan
Stuart Mark Rosenberg
Shea Ventures LLC
Survivor’s Trust U/A Eighth-E & M Shea Revocable Trust
Daniel R. Skimore
Stetson Capital Fund, L.P.
Hira Thapliyal
Sally Goodwin Tully

A-3

US Bank National Association, Trustee of the 
Allete and Affiliate Companies Master Pension Trust
The Van Ness 1983 Revocable Trust
PENSCO Trust Company LLC Custodian FBO
William D. Van Ness IRA
Venture Lending & Leasing IV, LLC
Venture Lending & Leasing V, LLC
WS Investment Co, LLC (2002A)
WS Investment Co, LLC (2002C)
Series C-1 Holders
Michael A. and Jan M. Baker
Jan P. Barker
Boston Scientific Corporation
Bowman Living Trust
Harry B. Bremond Sep Prop Trust
Fred & Melody Bubank Family Trust
Buch Revocable Trust
Annette Campbell-White
Andrew Chase
George Y. Choi
Charles R. Clark III
Morgan Stanley Smith Barney LLC, Custodian
For F/B/O Ronald C. Conway IRA
Wallace H. Coulter Foundation
CVF, LLC
De Novo Ventures III Liquidating Trust
DeSoto Securities Company
Carol Dickey
Edgemere LLC
Frank M. Fischer
Peggy Woodford Forbes Sep Prop Trust
The Gould Family 1994 Trust
Robert & Susan Green Revocable Trust
James E. Guth Revocable Trust
James E. Guth, IRA
HealthCap V L.P.
Ephraim Heller, Trustee, Ephraim Heller Sep. Prop Trust dated 10-6-06
Higgerson Revocable Trust UAD 4/6/90
David R. Holbrooke
David Reese Holbrooke Rev. Trust
Grant M. Inman & Suanne B. Inman,
Trustees Inman Living Trust
Amir P. Izadpanah

A-4

Susan Jackson Trust dated September 15, 1989
Jupiter Partners
Kaiser Permanente Federation LLC – Series I
Kaiser Permanente Ventures LLC – Series A
Kaiser Permanente Ventures LLC – Series B
The Permanente Federation LLC – Series I
Christopher Kaster
KPCB Holdings, Inc., as nominee
LVP Life Science Ventures III, L.P.
LVP III Associates, L.P.
LVP III Partners, L.P.
Leerink Revelation Healthcare Fund I, L.P.
Henry F. Lenartz and Nona M. Lenartz, Trustees, the
Lenartz Family Trust, U/D/T dated January 25, 1990
Charles T. Liamos
Limit & Co.
Allan May Revocable Trust
James Meyer
Christopher Meyer Trust
Momsen Living Trust U/A/D 1/5/95
Montreux Equity Partners II SBIC, L.P.
Montreux Equity Partners III SBIC, L.P.
Robert Moreland
OFP V Advisor AB
Philip E. Oyer
Penn Mutual Life Insurance Co.
Permalon Ltd.
Phoenix Companies, Inc. Employee Pension Plan Trust
Phoenix Life Insurance Company
Phoenix Life Insurance Company Employee Pension Plan
Stuart Mark Rosenberg
Shea Ventures LLC
Survivor’s Trust U/A Eighth-E & M Shea Revocable Trust
Daniel R. Skimore
Stetson Capital Fund, L.P.
Hira Thapliyal
Sally Goodwin Tully
US Bank National Association, Trustee of the 
Allete and Affiliate Companies Master Pension Trust
The Van Ness 1983 Revocable Trust
PENSCO Trust Company LLC Custodian FBO
William D. Van Ness IRA
Venture Lending & Leasing IV, LLC
Venture Lending & Leasing V, LLC
WS Investment Co, LLC (2002A)

A-5

WS Investment Co, LLC (2002C)
Series D-1 Holders
Boston Scientific Corporation
Bowman Living Trust
Harry B. Bremond Sep Prop Trust
Annette Campbell-White
Andrew Chase
Todd Cornell
Wallace H. Coulter Foundation
CVF, LLC
De Novo Ventures III Liquidating Trust
DeSoto Securities Company
Sami El Hamdi
Frank M. Fischer
Peggy Woodford Forbes Sep Prop Trust
Werner Glockner
The Gould Family 1994 Trust
James E. Guth Revocable Trust
HealthCap V L.P.
Ephraim Heller, Trustee, Ephraim Heller Sep. Prop Trust dated 10-6-06
Higgerson Revocable Trust UAD 4/6/90
David R. Holbrooke
Grant M. Inman & Suanne B. Inman,
Trustees Inman Living Trust
Susan Jackson Trust dated September 15, 1989
Jupiter Partners
Kaiser Permanente Ventures LLC – Series A
Kaiser Permanente Ventures LLC – Series B
The Permanente Federation LLC – Series J
Christopher Kaster
KPCB Holdings, Inc., as nominee
LVP Life Science Ventures III, L.P.
LVP III Associates, L.P.
LVP III Partners, L.P.
Charles T. Liamos
Limit & Co.
Robert Moreland
OFP V Advisor AB
Philip E. Oyer
Phoenix Companies, Inc. Employee Pension Plan Trust
Phoenix Life Insurance Company
Stuart Mark Rosenberg
Survivor’s Trust U/A Eighth-E & M Shea Revocable Trust

A-6

Peter Svensson
Steven Thomas
The Van Ness 1983 Revocable Trust
Venture Lending & Leasing IV, LLC
Venture Lending & Leasing V, LLC
Series E-1 Holders
Jan P. Barker
Boston Scientific Corporation
Bowman Living Trust
Harry B. Bremond Sep Prop Trust
Annette Campbell-White
Andrew Chase
George Y. Choi
Wallace H. Coulter Foundation
CVF, LLC
De Novo Ventures III Liquidating Trust
DeSoto Securities Company
Carol Dickey
Edgemere LLC
Frank M. Fischer
Peggy Woodford Forbes Sep Prop Trust
The Gould Family 1994 Trust
Robert & Susan Green Revocable Trust
James E. Guth Revocable Trust
James E. Guth, IRA
HealthCap V L.P.
Ephraim Heller, Trustee, Ephraim Heller Sep. Prop Trust dated 10-6-06
Higgerson Revocable Trust UAD 4/6/90
David R. Holbrooke
Grant M. Inman & Suanne B. Inman,
Trustees Inman Living Trust
Susan Jackson Trust dated September 15, 1989
Jupiter Partners
Kaiser Permanente Ventures LLC – Series A
Kaiser Permanente Ventures LLC – Series B
The Permanente Federation LLC – Series J
Christopher Kaster
KPCB Holdings, Inc., as nominee
LVP Life Science Ventures III, L.P.
LVP III Associates, L.P.
LVP III Partners, L.P.
Leerink Revelation Healthcare Fund I, L.P.
Charles T. Liamos

A-7

Limit & Co.
James Meyer
Christopher Meyer Trust
Momsen Living Trust U/A/D 1/5/95
Montreux Equity Partners II SBIC, L.P.
Montreux Equity Partners III SBIC, L.P.
Robert Moreland
OFCO Club V
Philip E. Oyer
Penn Mutual Life Insurance Co.
Permalon Ltd.
Phoenix Companies, Inc. Employee Pension Plan Trust
Phoenix Life Insurance Company
Phoenix Life Insurance Company Employee Pension Plan
Stuart Mark Rosenberg
Shea Ventures LLC
Shea Ventures Opportunity Fund II, LP
Survivor’s Trust U/A Eighth-E & M Shea Revocable Trust
Hira Thapliyal
US Bank National Association, Trustee of the
Allete and Affiliate Companies Master Pension Trust
The Van Ness 1983 Revocable Trust
Venture Lending & Leasing IV, LLC
Venture Lending & Leasing V, LLC
WS Investment Co., LLC (2002A)
WS Investment Co., LLC (2002C)
Series F-1 Holders
Boston Scientific Corporation
Series G-1 Holders
ABG-Pulmonx Limited
ABG YY Limited
ArrowMark Life Science Fund, LP
ArrowMark Fundamental Opportunity Fund, L.P.
Ashland University
Boston Scientific Corporation
Driehaus Life Sciences Fund, L.P.
Kaiser Permanente Ventures, LLC – Series A
Kaiser Permanente Ventures, LLC – Series B
The Permanente Federation, LLC – Series J
LVP Life Science Ventures III, L.P.
LVP III Associates, L.P.

A-8

LVP III Partners, L.P.
Meridian Small Cap Growth Fund
Montreux Growth Partners II L.P.
RTW Master Fund, Ltd.
RTW Innovation Master Fund, Ltd.
Shea Ventures Opportunity Fund II, LP

A-9Exhibit

Exhibit 10.1

PULMONX CORPORATION
2010 STOCK PLAN
(Amended as of January 20, 2015)
1.Purposes of the Plan. The purposes of this 2010 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 promulgated thereunder. Stock purchase rights may also be granted under the Plan. The Plan shall become effective upon its approval by the Board (the “Effective Date”). The Plan shall supersede the Company’s Amended and Restated 2000 Stock Plan (the “2000 Plan”) effective as of the Effective Date such that no further awards shall be made under the 2000 Plan on or after such date. However, this Plan shall not, in any way, affect awards under the 2000 Plan that are outstanding as of the Effective Date.
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 under applicable U.S. state corporate laws, U.S. federal and applicable state securities laws, the Code, any Stock Exchange rules or regulations and the applicable laws 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, unless another applicable definition is provided in the Option Agreement, Restricted Stock Purchase Agreement, applicable employment agreement or other applicable agreement, if the Participant is terminated 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, Affiliate or successor thereto, if appropriate.
(f)    “Change of Control” means a sale of all or substantially all of the Company’s assets, or any merger or consolidation of the Company with or into another corporation other than a merger or consolidation in which the holders of more than 50% of the shares of capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by the voting securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company, or such surviving entity, outstanding immediately after such transaction.
(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 Pulmonx Corporation, 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.
(m)    “Corporate Transaction” means a sale of all or substantially all of the Company’s assets, or a merger, consolidation or other capital reorganization of the Company with or into another corporation and includes a Change of Control.
(n)    “Director” means a member of the Board.

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(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. Not withstanding anything herein to the contrary, the Fair Market Value of the Common Stock shall be determined consistent with Section 409A or Section 422 of the Code, to the extent applicable.
(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, Affiliate or successor thereto, as appropriate; or (ii) voluntary termination by the Participant within 90 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, Affiliate or successor thereto, 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 by at least 50%, 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.
(u)     “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option, as designated in the applicable Option Agreement.
(v)    “Option” means a stock option granted pursuant to the Plan.

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(w)    “Option Agreement” means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terns 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.
(x)    “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.
(y)    “Optioned Stock” means the Common Stock subject to an Option.
(z)    “Optionee” means an Employee or Consultant who receives an Option.
(aa)    “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code, or any successor provision.
(bb)    “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.
(cc)    “Plan” means this 2010 Stock Plan.
(dd)    “Reporting Person” means an officer, Director, or greater than ten percent shareholder 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.
(ee)    “Restricted Stock” means Shares of Common Stock acquired pursuant to a grant of a Stock Purchase Right under Section 11 below.
(ff)    “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.
(gg)    “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from time to time, or any successor provision.
(hh)    “Section 409A” means Section 409A of the Code and the regulations promulgated thereunder.
(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.

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(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 24,347,819 Shares of Common Stock. The foregoing limit shall be construed to comply with Section 422 of the Code. 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 have shall not 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 requirements of Rule 16b-3 or Section 162(m) of the Code, to the extent permitted or required by such provisions.

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(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 Options and Stock Purchase Rights may from time to time be granted;
(iii)    to determine whether and to what extent Options and Stock Purchase Rights 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, 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
(xi)    in order to fulfill the purposes of 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.

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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. Eligibility for Nonstatutory Stock Options is further limited to those otherwise eligible individuals as to whom the Company would be an “eligible issuer of service recipient stock” under Section 1.409A-1(b)(5)(iii)(E) of the Treasury Regulations.
(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 his or her employment or consulting relationship at any time, with or without Cause.
6.    Term of Plan. The Plan shall become effective upon its adoption by the Board. 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.    Reserved.

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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 prior to the date, if any, on which the Common Stock becomes 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;
(B)    granted prior to the date, if any, on which the Common Stock becomes a Listed Security to any other eligible person, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant; or
(C)    granted on or after the date, if any, on which the Common Stock becomes a Listed Security to any eligible person, the per share Exercise Price shall be such price as determined by the Administrator provided the per share Exercise Price shall be no less than 100% of the Fair Market Value on the date of grant.
(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, to the extent permitted under Section 409A.
(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) delivery of Optionee’s promissory note with such recourse, interest, security and redemption provisions as the Administrator determines to be appropriate; (4) cancellation of indebtedness of the Company to Optionee; (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 determined by the Administrator); (6) delivery of a properly executed exercise notice together 

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with such other documentation as the Administrator and a securities broker approved by the Company shall require to effect exercise of the Option and prompt delivery to the Company of the sale or loan proceeds required to pay the exercise price and any applicable withholding taxes; (7) any combination of the foregoing methods of payment; or (8) such other consideration and method of payment permitted under Applicable Laws. 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 by the Applicable Laws, any Option granted prior to the date, if any, upon which the Common Stock becomes a Listed Security shall become exercisable at the rate of at least 20% per year over five years from the date the Option is granted. In the event that any of the Shares issued upon exercise of an Option (which exercise occurs prior to the date, if any, upon which the Common Stock becomes a Listed Security) should be subject to a right of repurchase in the Company’s favor, such repurchase right shall, if required by the Applicable Laws, lapse at the rate of at least 20% per year over five years from the date the Option is granted. Notwithstanding the above, in the case of an Option granted to an officer, Director or Consultant of the Company or any Parent, Subsidiary or Affiliate of the Company, the Option may become fully exercisable, or a repurchase right, if any, in favor of the Company shall lapse, at any time or during any period established by the Administrator. 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 leave.
(ii)    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.
(iii)    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.

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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.
(iv)    Rights as Shareholder. 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 shareholder 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.
(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. To the extent that the Optionee is not entitled to exercise an Option at the date of his or her termination of 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 with no consideration due to the Optionee 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 an Optionee’s Continuous Service Status, such Optionee may exercise an Option for 30 days following such termination to the extent the Optionee was entitled to exercise it at 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.
(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 entitled to exercise it at 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 

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bequest or inheritance, subject to delivery of proof of the same to the Administrator, at any time within twelve months following the date of death, but only to the extent of the right to exercise that had accrued at 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 with no consideration due to the Optionee 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.
(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. Any such buyout shall be done in a manner that complies with Applicable Laws, including the requirements of Section 409A.
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, 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. 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. The permissible consideration for Stock Purchase Rights shall be determined by the Administrator and shall be the same as is set forth in Section 9(b) with respect to exercise of Options.
(b)    Repurchase Option. 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). The purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the lower of (i) the original purchase price paid by the purchaser or (ii) the Fair Market Value of a Share on the day of the termination of employment, and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at such rate as the Administrator may determine, provided that with respect to a Stock Purchase Right granted prior to the date, if any, on which the Common Stock becomes a Listed Security to a purchaser who is not an officer, 

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Director or Consultant of the Company or of any Parent or Subsidiary of the Company, it shall lapse at a minimum rate of 20% per year if required by the Applicable Laws.
(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 Shareholder. Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a shareholder, and shall be a shareholder 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.
12.    Taxes.
(a)    As a condition of the 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 the exercise of the Option or Stock Purchase Right and 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 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 minimum statutory 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”).

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(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 minimum statutory 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 determined by the Administrator).
(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 postponed 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, prior to the date, if any, on which the Common Stock becomes a Listed Security, 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 to “Immediate Family” (as defined below), on such terms and conditions as the Administrator deems appropriate. Following the date, if any, on which the Common Stock becomes a Listed Security, the Administrator may in its discretion grant transferable Nonstatutory Stock Options pursuant to Option Agreements specifying the manner in which such Nonstatutory Stock Options are transferable. “Immediate Family ‘means any 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, and shall include adoptive relationships.

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14.    Adjustments Upon Changes in Capitalization, Merger or Certain Other Transactions.
(a)    Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares of Common Stock covered by each outstanding Option or Stock Purchase Right and the number of Shares of Common Stock that have been authorized for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or that have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right, as well as the price per Share of Common Stock covered by each such outstanding Option or Stock Purchase Right, 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 Option or Stock Purchase Right.
(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. Unless the Option Agreement, Stock Purchase Agreement, applicable employment agreement or other applicable agreement provides otherwise, in the event of a Corporate Transaction, 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, unless the Option Agreement, Stock Purchase Agreement, applicable employment agreement or other applicable agreement provides otherwise, 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 without Cause in connection with, or within 3 months following consummation of, the transaction, then any assumed or substituted Option or Stock Purchase Right held by the terminated Participant at the 

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time of termination shall accelerate and become exercisable as to the number of Shares that would otherwise have vested and been exercisable as of the date 30 days from the date of termination, and any repurchase right applicable to any Shares shall lapse as to the number of Shares as to which the repurchase right would otherwise have lapsed as of the date 30 days from the date of termination, in each case assuming the Participant remained in Continuous Service Status for such 30 day period. The acceleration of vesting and lapse of repurchase rights provided for in the previous sentence shall occur immediately prior to the effective date of the Participant’s termination.
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)    Limitation on Payments. In the event that the vesting acceleration or lapse of a repurchase right provided for in Section 14(c) above (x) constitutes “parachute payments” within the meaning of Section 280G of the Code, and (y) but for this Section 14(d) would be subject to the excise tax imposed by Section 4999 of the Code (or any corresponding provisions of state income tax law), then such vesting acceleration or lapse of a repurchase right shall be either
(A)    delivered in full, or
(B)    delivered as to such lesser extent which would result in no portion of such vesting acceleration being subject to excise tax under Code Section 4999, whichever amount, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Code Section 4999, results in the receipt by the Participant on an after-tax basis of the greater amount of acceleration or lapse of repurchase rights benefits, notwithstanding that all or some portion of such benefits may be taxable under Code Section 4999. Any determination required under this Section 14(d) shall be made in writing by the Company’s independent accountants, whose determination shall be conclusive and binding for all purposes on the Company and any affected Participant. In the event that (A) above applies, then the Participant shall be responsible for any excise taxes imposed with respect to such benefits. In the event that (B) above applies, then each benefit provided hereunder shall be proportionately reduced to the extent necessary to avoid imposition of such excise taxes.

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(e)    Certain Distributions. In the event of any distribution to the Company’s shareholders 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, to the extent permitted by Section 409A, 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. 
(f)    Section 409A. Any adjustments or actions contemplated by this Section 14 shall be done in a manner that complies with the requirements of Section 409A, to the extent applicable.
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 completes the corporate action necessary to create the legally binding right constituting such Option or Stock Purchase Right, or such other date as is determined by the Administrator. 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.
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 shareholder approval of any Plan amendment in such a manner and to such a degree as required.
(b)    Effect of Amendment or Termination. 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.

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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.    Shareholder Approval. If required by the Applicable Laws, continuance of the Plan shall be subject to approval by the shareholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such shareholder approval shall be obtained in the manner and to the degree required under the Applicable Laws.
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. 
22.    Limitation of Liability. The awards granted under the Plan are intended to be exempt from Section 409A. Notwithstanding the foregoing, or anything to the contrary in the Plan, neither the Company, any subsidiary, nor the Board, nor any person acting on behalf of the Company, any subsidiary, or the Board, shall be liable to any participant or to the estate or beneficiary of any participant or to any other holder of an Option by reason of any acceleration of income, or any additional tax, asserted by reason of the failure of an Option to satisfy the requirements of Section 409A or by reason of Section 4999 of the Code.

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