Document:

Exhibit 10.5

 

PRODUCT SUPPLY AND DEVELOPMENT AGREEMENT

 

This PRODUCT SUPPLY AND DEVELOPMENT AGREEMENT (“Agreement”), effective as of April 15, 2009 (the “Effective Date”), is by and between EaglePicher Medical Power LLC (“EPMP LLC”), a Delaware Corporation having an address of “C” and Porter Streets, Joplin, MO 64801 and Nevro Corporation (“Buyer”), a Delaware Corporation, having its principal place of business at 411 Acacia Avenue, Palo Alto, CA 94306.

 

WHEREAS, Buyer wishes to purchase batteries and related products for use in preclinical status and clinical trials of its proprietary medical implantable devices;

 

WHEREAS, EPMP LLC agrees to manufacture and sell such batteries and related products to Buyer in accordance with, and subject to, the specifications, delivery schedules and other terms and conditions set forth in this Agreement; and

 

WHEREAS, at a future date, if Buyer desires to develop a custom battery, the parties will cooperate in the development of such custom battery pursuant to this Agreement.

 

NOW, THEREFORE, EPMP LLC and Buyer hereby agree as follows:

 

1.                                     DEFINITIONS. As used in this Agreement, the following defined terms shall have the meanings provided for in this Article 1:

 

1.1.                            “Affiliate” means with respect to either party, any Person controlling, controlled by or under common control with such party, for so long as such control exists.  For purposes of this Section 1.1, “control” means (a) direct or indirect ownership of fifty percent (50%) or more (or, if less than fifty percent (50%), the maximum ownership interest permitted by applicable law) of the stock or shares having the right to vote for the election of directors of such corporate entity or (b) the possession, directly or indirectly, of the power to direct, or cause the direction of, the management or policies of such entity, whether through the ownership of voting securities, by contract or otherwise

 

1.2.                            “Battery Technology” means all inventions, know-how, processes, chemistry, data, test results, formulas, trade secrets, non-public specifications, and other proprietary information relating to the composition, article of manufacture, or methods of making or using batteries, whether or not patentable.

 

1.3.                            “Buyer Technology” means any invention, know-how, design, plan, idea, technique, discovery, technical, trade secret or other proprietary information, whether or not patentable or copyrightable, including but not limited to manufacturing technology and processes, either Controlled by 

 

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Buyer or one of its Affiliates as of the Effective Date, or by Buyer or one of its Affiliates during the term of but outside the scope of this Agreement or thereafter, and any Improvements thereto.

 

1.4.                            “Control” means, with respect to an item or intellectual property rights, the ability and authority of a party or its Affiliate, whether arising by ownership, possession, or pursuant to a license or sublicense, to grant licenses, sublicenses, or other rights to the other party under or to the subject item or intellectual property rights as provided for in this Agreement, without breaching the terms of any agreement between such party and any third party.

 

1.5.                            “Development Phase” means the period beginning from initiation of the creation of a Modified Product pursuant to Article 3 and continuing until completion of the design and prototype tasks relating to such Modified Product, also referred to as “Phase 1” development, as set forth in the relevant Development Plan.

 

1.6.                            “Development Plan” means a development plan to be created by the parties at a later date if the parties agree to develop a Modified Product pursuant to Article 3, under which EPMP LLC will perform its obligations to develop a Modified Product, including time lines and deliverables for the Development Phase for any Modified Product.  Any future Development Plan will be attached hereto as Exhibit D.

 

1.7.                            “EPMP LLC Technology” means any invention, know-how, design, plan, idea, technique, discovery, technical, trade secret or other proprietary information, whether or not patentable or copyrightable, including but not limited to manufacturing technology and processes, either owned by or licensed to EPMP LLC or one of its Affiliates as of the Effective Date, or solely developed or licensed by EPMP LLC or one of its Affiliates during the term of but outside the scope of this Agreement or thereafter, and any Improvements thereto.

 

1.8.                            “Improvement” means any modification, enhancement, inventions or other desirable change to the respective technology (Buyer Technology, Battery Technology, or EPMP LLC Technology) developed by either party hereto pursuant to this Agreement.

 

1.9.                            “Interface Invention” means any Invention relating to connections to, interfaces with, or attachments to batteries or Product.

 

1.10.                     “Pre-Production Phase” means, for any Modified Product developed pursuant to Article 3 below, the period immediately after the Development Phase and immediately prior to the Production Phase during which all preparations are completed for final approval by Buyer or its designee and production readiness of such Modified Product.

 

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1.11.                     “Production Phase” means, for any Modified Product developed pursuant to Article 3 below, the period beginning when all Product designs for such Modified Product have been completed and approved in writing by both parties and continuing for the term of this Agreement.

 

1.12.                     “Person” means any individual and any corporation, partnership, limited liability company, business or other trust, governmental agency or authority, association or other entity.

 

1.13.                     “Product” means any cell or battery, whether those being made as of the Effective Date by EPMP LLC or specifically designed to meet Buyer’s specifications pursuant to a Development Plan, for use in Buyer’s implantable medical devices.  Products include without limitation any Modified Products that the parties develop pursuant to Article 3.

 

1.14.                     “Specifications” means the specifications for the Product set forth in Exhibit A, which may be modified from time to time by written agreement of the parties.

 

2.0                              SCOPE OF AGREEMENT.  EPMP LLC shall use its best efforts during the term of this Agreement to supply Products to Buyer in the quantities ordered by Buyer from time to time and in accordance with the Specifications and with the schedules for deliveries thereof established pursuant to this Agreement. If requested by Buyer, EPMP LLC shall develop Modified Products as provided in Article 3.  It is understood that Buyer shall be free to enter into cooperation, development, and supply agreements with third parties with respect to other batteries and related products.

 

3.0                              NEW PRODUCT DEVELOPMENT.

 

3.1                               If Buyer desires to have EPMP LLC conduct development of a modified version of Product to have specific characteristics of use to Buyer (a “Modified Product”), it shall so notify EPMP LLC in writing.  Within [***] days after Buyer makes such request, the parties shall agree upon a Development Plan for developing such Modified Product, including timelines and related budgets for such activities.

 

3.2                               Without limiting Section 3.1, EPMP LLC agrees that it will dedicate sufficient personnel, materials and facilities to diligently develop Modified Products under this Agreement in accordance with the relevant Development Plan.

 

3.3                               During the Development Phase, EPMP LLC will use its best efforts to develop Modified Products (i) to comply with all of the relevant Specifications, and (ii) in accordance with the relevant Development Plan.

 

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Development Phase and the relevant Pre-Production Phase at times mutually agreed upon by the parties.

 

3.5                               Buyer may, from time to time, request modifications to the project objectives under any Development Plan, specifications or tasks, which EPMP LLC will consider in good faith, but which EPMP LLC reserves the right to approve in its reasonable discretion.  EPMP LLC will promptly provide Buyer in writing with notice of any projected resulting change in costs associated with Buyer’s requested modifications to project objectives, specifications, or tasks.  Buyer shall be obligated to pay such change in cost only if Buyer accepts such changes in cost in writing.  Buyer and EPMP LLC will mutually agree in writing upon such timetable changes as are necessitated by such modifications, and any other implications of such modifications, and update the relevant Development Plan to reflect such agreed changes.

 

3.6                               Each of EPMP LLC and Buyer will cooperate fully and closely with the other to facilitate the fastest possible development of any Modified Products, including but not limited to designating technical personnel to attend and participate in regularly scheduled design review meetings.  Each of EPMP LLC and Buyer will designate in writing from time to time a Project Engineer to act as liaison with the other party to coordinate and respond to questions and inquiries regarding technical matters, personnel and intellectual property matters.

 

4.                                      ORDER AND DELIVERY.

 

4.1                              Purchase Orders for Products, Forecasts, and Releases.

 

a.                    Within [***] days prior to commencement of the Production Phase for any Modified Product, or within [***] days after the Effective Date for other Products, Buyer shall submit to EPMP LLC in writing, whether by mail, telecopy, facsimile, or electronic data interchange format approved by EPMP LLC, a purchase order for Product for a time period of not less than [***] months commencing from the beginning of the Production Phase for any Modified Product, or commencing from [***] days after the Effective Date for other Products.  Each such purchase order shall represent and constitute a “Purchase Order.”  At least [***] prior to the expiration of each Purchase Order, Buyer shall issue a Purchase Order for the contiguous time period of not less than [***] months immediately following expiration of such prior Purchase Order.  Buyer may, at its discretion, satisfy this objective by extending the time period covered by the existing Purchase Order.  All Purchase Orders shall at a minimum: (i) identify Products ordered, (ii) state Product price, (iii) state Product quantity ordered with intended delivery schedule, (iv) 

 

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state the location to which the Product is to be shipped, (v) state the shipping schedule for the period of the Purchase Order, and (iv) state that this Agreement shall govern and control all purchase orders.

 

b.                    Within [***] days prior to commencement of the Production Phase for any Modified Product, or within [***] days after the Effective Date for other Products, Buyer will provide EPMP LLC with an initial twelve (12) calendar month forecast indicating Buyer’s forecasted purchases of Products from EPMP LLC during that period (the “Initial Twelve (12) Calendar Month Forecast”). Subsequent to Buyer providing EPMP LLC the Initial Twelve (12) Calendar Month Forecast, by the first day of the first month in each of January, April, July, and September thereafter, Buyer shall provide EPMP LLC with an updated rolling twelve (12) calendar month forecast indicating Buyer’s forecast purchases of Products from EPMP LLC during the immediately following twelve (12) month period (each such forecast being a “Twelve Month Forecast”).  The Initial Twelve (12) Calendar Month Forecast and the Twelve Month Forecasts shall be used for purposes of facilitating each party’s planning and in order to meet the lead times required by certain of EPMP LLC’s suppliers.  The first three (3) months of each Twelve Month Forecast will be firm.

 

4.2                               Changes and Cancellations. Purchase Orders may be modified or canceled by Buyer by giving [***] days prior written notice.  Modifications must be approved in writing by EPMP.  In the event of a cancellation, Buyer will be responsible for purchasing finished product and work-in-progress according to quantities in the firm three (3) month period of the Initial Twelve (12) Calendar Month Forecast or the Twelve Month Forecast, as applicable, and for the cost of raw material purchased by EPMP LLC based on the most recent six months of either the Initial Twelve (12) Calendar Month Forecast or a Twelve Month Forecast, as applicable.

 

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4.3                               Order Limitations. An “Excess Product Quantity” is those quantities of Product ordered in a Purchase Order for delivery within a certain month that are greater than [***] of the quantities of Product forecasted by Buyer for that month. EPMP LLC shall not be obligated to supply Excess Product Quantities; however, EPMP LLC shall use all commercially reasonable efforts to supply Excess Product Quantities, it being understood that in the supply of any such excess beyond the permitted coverage EPMP LLC may take into account its then existing delivery commitments to other customers.  Buyer shall reimburse EPMP LLC for any reasonable costs actually paid by EPMP LLC in order to facilitate the production of Excess Product Quantities, but only costs directly related to the Excess Product Quantities actually delivered to Buyer and only if EPMP LLC obtains prior approval in writing from Buyer to commence such excess production at such increased cost.

 

4.4                               Packaging. EPMP LLC will mark all containers with necessary lifting, handling, storage, and shipping information and with Purchase Order numbers, date of shipment, and the names of the Buyer and EPMP LLC. EPMP’s standard Certificate of Compliance and an itemized packing list, which shall include (i) the Purchase Order number, and (ii) the description, part number, revision level, and quantity of the Product(s) so shipped, must accompany each shipment.

 

4.5                               Shipping. All deliveries of Products shall be [***] (Incoterms 2000) [***]. Title to the Products and all risk of damage to or loss or delay of Products purchased under this Agreement shall pass to Buyer upon [***].

 

4.6                           Cancellation Costs in General. Production cancellation costs will not be in excess of the purchase price of the Products actually cancelled in a purchase order. EPMP LLC shall use best efforts to mitigate all cancellation costs. Upon Buyer’s request, EPMP LLC shall deliver to Buyer any materials or unfinished Products for which full reimbursement was received by EPMP LLC.

 

5.0                               PRODUCT ACCEPTANCE.

 

5.1                               Inspections. Any inspection by Buyer or its designee of Products purchased under this Agreement shall be made at Buyer’s or its designee’s facility and at Buyer’s expense. Buyer shall notify EPMP LLC in writing within [***] calendar days after receipt at Buyer’s or its designee’s facility (the “Acceptance Period”) of any Product rejections based on damage, discrepancy, or nonconformity with the Specifications. Buyer’s failure to inspect or failure to notify EPMP LLC of any rejection of Product in writing due to any damage, discrepancy, or nonconformity

 

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with the Specifications during the Acceptance Period shall be deemed acceptance of the Products. In the event of any nonconformity with the Specifications discovered after acceptance, EPMP LLC’s sole obligation and liability, and Buyer’s sole remedy, shall be limited to the provisions set forth in Article 10, Warranty, below.

 

5.2                               Return Procedure. In the event that Buyer rejects a Product pursuant to Section 5.1, Buyer may, at Buyer’s option, return any rejected Product to EPMP LLC.

 

a. Buyer may return any Products rejected pursuant to Section 5.1 to EPMP LLC at EPMP LLC’s risk and cost unless EPMP LLC acknowledges any defect or non-conformance in writing and requests Buyer to not return such rejected Products within [***] days after receipt of the written rejection.  In such cases, EPMP LLC shall reimburse buyer’s costs of disposing of such Product.  EPMP LLC may issue a RA number (Return Authorization number) which is procedural only and is no way an admission that the Products are defective or nonconforming.

 

b. At Buyer’s option, EPMP LLC shall then either replace the rejected Products or credit Buyer for the rejected Products. In the case of either replacement or credit, title to the rejected Product shall pass to EPMP LLC on return shipment by Buyer of the rejected Products to EPMP LLC pursuant to Section 5.2(a).

 

c. If EPMP LLC is to replace the product(s), EPMP LLC shall transport the replacement products at EPMP LLC’s cost to an air freight or overnight carrier within [***] days after receipt of Buyer’s replacement request.

 

5.3                               EPMP LLC’s Quality Assurance. EPMP LLC will maintain and use in manufacturing Products quality assurance systems of at least industry standard for the control of material quality, processing, assembly, testing, packing, and shipping in accordance with its usual policies and practices. The parties will endeavor to meet quarterly to discuss and resolve any issues, which may have arisen with respect to quality assurance, including those relating to quality, performance, engineering changes, industry changes, or surpluses.

 

6.                                      PRICE.

 

6.1                              Pricing. The initial prices for Products that are not Modified Products are set out on Exhibit C hereto, and are subject to adjustment as provided for in Section 6.3.

 

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6.2                               Production Payment Terms. Payment terms are net [***] days from date of the invoice. Except in the case of good faith disagreements about amounts invoiced, EPMP LLC may charge interest in the amount of [***] per annum, or the maximum amount permitted by law, whichever is less, on any unpaid balance after the net [***] day payment term, until such balance is paid in full.

 

6.3                               Price Adjustments. If EPMP LLC incurs increases or decreases in its direct cost of materials for use in manufacturing the Product of [***] or more per Product unit during the term of this Agreement, EPMP LLC shall send a notice to Buyer detailing such change. The parties agree to negotiate in good faith after delivery of such notice with respect to an adjustment to Product pricing in view of such increase or decreases, but no modification of such pricing shall occur unless and until the parties have both signed an amendment hereto.

 

6.4                               Taxes. Prices are in U.S. dollars and do not include any Canadian, U.S. federal or state sales taxes, duties, or export or import charges, which shall be paid solely by Buyer.

 

7.0                               INTELLECTUAL PROPERTY.

 

7.1                               Existing Technology. All Battery Technology rights Controlled by Buyer as of the Effective Date and Buyer Technology will continue to be Controlled by Buyer. All Battery Technology rights Controlled by EPMP LLC as of the Effective Date and EPMP LLC Technology will continue to be Controlled by EPMP LLC.

 

7.2                               New Intellectual Property Arising Under Agreement. Ownership of all discoveries, technology, and inventions arising during and in the course of the parties’ performance under the Agreement, and intellectual property rights therein (together, “Inventions”) shall be as follows: (i) any [***] shall be owned by EPMP LLC, and (ii) Nevro shall own all other Inventions.  Both parties shall cooperate with the other party to execute documents and take any actions necessary to effect the intent of the foregoing sentence in this Section 7.2.  EPMP LLC hereby grants to Buyer a nonexclusive, perpetual, irrevocable, sublicenseable, fully paid up, royalty-free, worldwide license under EPMP LLC Technology and any Inventions owned by EPMP LLC pursuant to this Section 7.2 to make, use, sell, offer for sale, import, copy, modify, distribute and otherwise exploit any medical devices developed, made, or sold by or on behalf of Buyer, its Affiliates, or sublicensees.

 

7.3                               No Other License. Subject to the right to use and sell the Products as integrated into Buyer’s products as set forth in Section 7.2, nothing in

 

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this Agreement grants or can be capable of granting to either party (whether directly or by implication, estoppel or otherwise) any rights to any Battery Technology Controlled by the other party or any Affiliate of the other party. Further, EPMP LLC grants no license of any EPMP LLC Technology to Buyer, except the right to use and sell the Products as integrated into Buyer’s products as set forth in Section 7.2.

 

8.                                      COMPLIANCE WITH LAWS.

 

8.1                               Compliance. EPMP LLC shall comply with all applicable laws, rules and regulations of Canada, the USA, Europe, and all other jurisdictions in which the Products are sold by Buyer and as to which Buyer notifies EPMP LLC in writing (“Applicable Laws”) in its performance under this Agreement.

 

8.2                               Reports. EPMP LLC shall cooperate with Buyer and provide any information reasonably requested or required by Buyer for Buyer’s compliance with regulatory approvals or actions for any products in which the Products will be incorporated.  EPMP LLC specifically agrees to cooperate with any inspection by the FDA or other regulatory authority.  EPMP LLC shall keep complete, accurate, and authentic accounts, notes, data, and records of the work performed under this Agreement (“Records”) and shall provide Buyer with a copy of all Records at Buyer’s request.

 

9.                                      PRODUCT SPECIFICATIONS; CHANGES.

 

9.1                               Specifications. The initial specifications for the Products are set forth in the specification for EPMP LLC Battery (Source Control Document Number) (see Exhibit A, attached hereto). Subject to written agreement between the parties as to Specifications and price for additional Products that may be developed pursuant to Article 3, this Agreement may be amended to include additional Products by attaching additional exhibits, but only upon written mutual consent of both parties.

 

9.2                               Changes. In the event Buyer wishes to make any changes to the Specification or the Product, Buyer shall inform EPMP LLC in writing, and EPMP LLC shall advise Buyer within [***] days after receiving such notice of the likely impact of such change on scheduling, pricing and manufacturing of Products, and whether such changes are feasible. EPMP LLC shall have the right to review and approve such changes to the Specifications, in order to determine whether EPMP LLC can reasonably comply with any requirement contained in such change. The parties may thereafter meet to discuss incorporating such change into the manufacturing process, including the allocation between the parties of additional costs related to such changes, however, [***].

 

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9.3                                     Engineering Change Approval. EPMP LLC shall not make any changes to any manufacturing source, production process, controlled process parameters or sources, or types or grade classifications of materials used, which may alter the form, fit, or function of any Product, without first obtaining from Buyer an engineering change approval in writing.

 

9.4                                     Cost of Engineering Changes. The parties shall mutually agree in writing upon the allocation of cost of engineering changes not necessary to remedy defects in the Products or nonconformities with the Specifications before such changes are made. All engineering changes to remedy defects in the Products or nonconformities with the Specifications shall be implemented [***] including, but not limited to, providing [***]. However, EPMP LLC shall examine Buyer’s Specifications and any other actions or instructions provided by Buyer to apply [***] of such Specifications in writing.

 

10.                              WARRANTY AND LIMITATION OF LIABILITY.

 

10.1                              Warranty. EPMP LLC represents and warrants to Buyer that: (i) the Product shall be free and clear from all liens and encumbrances, (ii) the manufacture, sale, lease, transfer or use of the Product will not infringe any intellectual property rights of a third party, and no action, suit or claim has been, or will have been, initiated or threatened against EPMP LLC with respect to the Products or EPMP LLC’s right to enter into and perform its obligations under this Agreement, (iii) the Products will meet the Specifications (for Modified Products, after such time as the Specifications are established for such Products), (iv) the manufacturing process and all materials used to manufacture the Products shall comply with all applicable Restriction of Hazardous Substance (“RoHS”) provisions, (v) EPMP LLC is not now nor has in the past been using in any capacity the services of any individual, corporation, partnership or association which has been debarred under 21 U.S.C. § 335a; (vi) the manufacturing process and all materials used in the manufacture of the Products will comply with all use restrictions, labeling requirements, inventory registration requirements and all other health and safety requirements imposed under Applicable Laws, and (vii) the Products will be free from defects in material and workmanship for a period of [***] months after the date of delivery to Buyer (the “Warranty Period”); provided, however, that Buyer gives notice to EPMP LLC of any defect within [***] days after discovering the defect within the Warranty Period. The return procedure outlined in Section 5.2 will be used with the exception that, in some cases, it may be impractical to return suspect Product to EPMP LLC for evaluation. In this case, following issuance of an RA by EPMP LLC, Buyer and EPMP LLC will work together to determine the appropriate means to make the suspect Product available for evaluation to determine the validity of the warranty claim, provided in this Section 10.1.  EPMP LLC covenants that it will not use in

 

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any capacity the services of any individual, corporation, partnership or association which is debarred or becomes debarred during the term of this Agreement, under 21 U.S.C. § 335a.

 

10.2                              Exceptions. EPMP LLC’s obligation under the warranties in Section 10.1 shall not apply to any Product or part thereof, if the alleged defect or other problem with the Product has been caused by: (a) Buyer’s improper storage, installation, use, maintenance, or modifications not complying with EPMP LLC’s written instructions, or Buyer’s improper testing not approved in writing by EPMP LLC, or (b) physical damage to Product after receipt by Buyer.

 

10.3                              Epidemic Failure. For the purpose of this Agreement, “Epidemic Failure” will be deemed to have occurred if more than [***] of Product units shipped pursuant to Article 4 in any 360 day period should fail to meet the relevant Specifications, whether occurring inside or outside any Warranty Period. Buyer and EPMP LLC acknowledge the common goal and expectation that the failure rate should decrease over the [***] subsequent to any Epidemic Failure.

 

Epidemic Failure Policy. In the case of Epidemic Failure, Buyer and EPMP LLC will cooperate to implement the following procedure:

 

a.        Buyer will promptly notify EPMP LLC in writing upon discovery of the Epidemic Failure.

 

b.        Within [***] working days, EPMP LLC will give an initial written response indicating its preliminary plan for diagnosing the problem.

 

c.         EPMP LLC and Buyer will jointly exert all commercially reasonable efforts to diagnose the problem and plan a work-around as an interim solution if one is needed, and a permanent solution.

 

d.        EPMP LLC will apply its engineering change procedure, described in Section 9.3, in appropriate circumstances for hardware problems related to the design of the Product, or originating in the manufacturing process.

 

e.         EPMP LLC will prepare and consult with Buyer regarding an appropriate recovery plan as well as an appropriate work-around, as an interim solution, if one is needed. EPMP LLC will any time upon Buyer’s request report in writing on the progress made.

 

f.          EPMP LLC and Buyer will mutually agree on a recovery plan to cure or prevent Epidemic Failures. If such plan is not effected within [***] after an Epidemic Failure has been reported by Buyer, Buyer shall have the right to terminate this Agreement with immediate effect without liability

 

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so long as the failure was solely or partially a result of acts or omissions by EPMP LLC.

 

10.4                              Limited Warranty. THE WARRANTIES SET FORTH ABOVE ARE IN LIEU OF ALL OTHER WARRANTIES, AND EACH PARTY MAKES NO OTHER WARRANTIES WHETHER WRITTEN ORAL, WRITTEN, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE.

 

10.5                              Remedies for Breach of Warranty.  EPMP LLC’s [***] obligation and liability under the warranties in Section 10.1 shall be [***]. Replacement Products will have a new Warranty Period based on their delivery date.

 

10.6                              Limitation of liability. Except for a breach of Sections 11 (Indemnification) and 12 (Confidentiality), the liability of each party is limited as follows:

 

a.        The total liability of EPMP LLC for any and all claims by Buyer arising under this Agreement, including but not limited to claims based on tort, breach of contract, warranty, or any other theory of recovery, shall not exceed the cumulative value of the purchase orders in a continuous prior [***] period containing the Product(s) giving rise to the claim and any such liability shall [***].

 

b.        The total liability of Buyer for any and all claims by EPMP LLC arising under this Agreement, including but not limited to claims based on tort, breach of contract, warranty, or any other theory of recovery, shall not exceed [***], and any such liability shall [***].

 

c.         In no event, however with the exception of [***], shall either party be liable for special,  indirect, incidental, exemplary, punitive or consequential damages including, but not limited to, loss of profits or revenue, even if warned of the possibility of such damages and notwithstanding the failure of essential purpose of any remedy.

 

10.7                              EPMP LLC Liability Insurance. EPMP LLC shall procure and maintain product liability and general liability insurance in such amounts as ordinary good business practice for its type of business would make advisable, but not less than [***] dollars, and EPMP LLC shall provide Buyer with written evidence of this coverage within ten business (10) days after the Effective Date.

 

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11.                              INDEMNIFICATION

 

11.1                              Buyer’s Indemnification. Buyer shall indemnify, defend and hold harmless EPMP LLC and its Affiliates, agents, officers, directors and employees (“EPMP Indemnitees”) from and against any and all claims, losses, damages, liabilities, legal actions, settlements, or expenses (including reasonable legal expenses), to the extent resulting from or arising out of any third party claims (“Losses”) that result in any way from (a) any breach by Buyer of this Agreement, or (b) Buyer’s use of the Products in such a way that constitutes or may constitute an infringement of any patent, trade secret, trademark, service mark, copyright, or related application, or other intellectual property or confidential and proprietary information infringement, except in each case to the extent caused by EPMP LLC’s or any EPMP Indemnitee’s gross negligence or willful misconduct or the Products as delivered to Buyer, breach of this Agreement by EPMP LLC or any action for which EPMP LLC must indemnify Buyer under Section 11.2; provided, however, that EPMP LLC: (i) promptly notifies Buyer in writing of any such notice or claim, and (ii) permits Buyer to control, in a manner not adverse to EPMP LLC, the defense, settlement, adjustment or compromise of any such claim using counsel of Buyer’s own choice. EPMP LLC may employ counsel, at its own expense (provided that, if such counsel is necessary because of a conflict of interest of either Buyer or its counsel, or because Buyer does not assume control, in which case Buyer will bear such expense), to assist it with respect to any such claim. Buyer shall not enter into any settlement for any intellectual property infringement claim that affects EPMP LLC’s rights or interest without EPMP LLC’s prior written approval.

 

11.2                              EPMP LLC’s Indemnification. EPMP LLC shall indemnify, defend and hold harmless Buyer and its Affiliates, agents, officers, directors, employees and  direct and indirect customers (“Buyer Indemnitees”) from and against any and all Losses that result in any way from (a) infringement or misappropriation of the Products provided by EPMP LLC to Buyer under this Agreement of any patent, copyright, trademark, trade secret or other intellectual property right, private right, or any other proprietary or personal interest of any third party, (b) defects or nonconformity with the Specifications of the Products that are not solely the result of any acts or omissions by Buyer, (c) any breach by EPMP LLC of this Agreement, except in each case to the extent caused by Buyer’s or any Buyer Indemnitee’s gross negligence or willful misconduct or breach of this Agreement by Buyer; provided, however, that Buyer: (i) promptly notifies EPMP LLC in writing of any such notice or claim, and (ii) permits EPMP LLC to control, in a manner not adverse to Buyer, the defense, settlement, adjustment or compromise of any such claim using counsel of EPMP LLC’s own choice. Buyer may employ counsel, at its own expense (provided that, if such counsel is necessary because of a conflict of interest of either EPMP LLC or its counsel, or because EPMP LLC does not assume control, in which case EPMP LLC will bear such expense), to assist it with respect to any such

 

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13

 

claim. EPMP LLC shall not enter into any settlement that affects Buyer’s rights or interest without Buyer’s prior written approval.

 

12.                               CONFIDENTIALITY.

 

Confidentiality Agreement. The parties agree that the terms of the Mutual Nondisclosure Agreement between EPMP LLC and Nevro (the “NDA,” as attached at Exhibit B), shall continue in effect during the term of this Agreement, apply to all information disclosed under this Agreement, apply thereafter as provided for in the NDA, and the Purpose (as defined in the NDA) is hereby expanded to include the performance of obligations and exercise of rights pursuant to this Agreement.  Furthermore, Section 4 of the NDA is hereby amended so that the following language is added at the end of Section 4: “If a court or government authority requires the Receiving Party to disclose any Proprietary Information, the Receiving Party may disclose such Proprietary Information only to the extent required by law or requirement and will use reasonable efforts to seek confidential treatment of any information so required to be disclosed.”  Permitted use and disclosure of Proprietary Information is limited to each party’s ability to use Proprietary Information only as necessary on a need to know basis to exercise its rights and fulfill its obligations under this Agreement and only in compliance with the standards and safeguards set forth in the NDA.

 

13.                         TERM AND TERMINATION

 

13.1                        Term. This Agreement shall commence on the Effective Date and have an initial term ending on November 1, 2010 (the “Initial Term”).  After the Initial Term, this Agreement will automatically renew for period of one year unless a Party notifies the other Party in writing of its intent to terminate the Agreement at least sixty (60) days prior to the end of the renewal term.

 

13.2                        Termination. Notwithstanding the provisions of Section 13.1, this Agreement may be terminated in accordance with any of the following provisions:

 

13.3                        Default. A party may terminate this Agreement upon giving written notice to the other party in the event that the other party is in breach of any material provision of this Agreement and shall have failed to cure such breach within sixty (60) days after receipt of written notice describing such material breach from the non-breaching party. A non-breaching party shall be entitled to an extension of time for performance of its obligations equaling the period of time of the breaching party’s default, to the extent such default affects the non-breaching party’s ability to perform hereunder.

 

13.4                        Bankruptcy, Insolvency. and Cessation. Either party may terminate this Agreement without liability by giving advance written notice to the other party, which termination shall be effective if such condition is not cured within sixty (60) days after any: (i) imminent filing of a bankruptcy petition of any type by the other party, (ii) declaration by the other party that it has

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

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or will become bankrupt or insolvent, (iii) assignment for the benefit of creditors of the other party, liquidation or receivership; or (iv) cessation of business or proof of the other party’s intent to cease to do business.

 

13.5                        Force Majeure. If an event of Force Majeure continues for more than ninety (90) consecutive days as provided in Article 14, then either party may terminate this Agreement, without liability to the other, immediately upon written notice. Each Party shall exercise commercially reasonable efforts to abate or remedy a condition of Force Majeure.

 

13.6                        Termination for Convenience. Either party may terminate this Agreement for convenience, in whole or in part and without liability for such termination, other than (for termination by Buyer) raw materials already purchased, finished Product, and work-in-progress as described in Section 4.2, by giving three(3) months prior written notice to the other party. In such event all terms and conditions of this Agreement shall remain in full force and effect until the termination takes effect three (3) months after notice.

 

13.7                        Rights and Obligations on Termination. If a party does not terminate for cause, termination of this Agreement shall not release that party from its obligation under this agreement. Any Purchase Orders pending or being effectively placed, pursuant to Section 4.1(b) during the notice period are to be fulfilled by EPMP LLC.

 

14.                               FORCE MAJEURE.

 

“Force Majeure” shall mean any event or condition, not existing as of the date of signature of this Agreement, not reasonably foreseeable as of such date or thereafter, and not reasonably within the control of either party, which prevents in whole or in material part the performance by one of the parties of its obligations hereunder, including, but not limited to, flood, storm, earthquake, embargoes, and acts of God, acts of government (other than government business), war, and/or public enemy. Force Majeure does not necessarily include the business dealings of government, but does include acts of government outside the course of ordinary business that legally prohibit or mandate certain business and manufacturing activities by EPMP LLC. If a party wishes to declare Force Majeure, it shall notify the other party immediately. Such notice shall include information with respect to the actual hindrance and, where possible, the duration of such hindrance. Upon giving notice to the other party, a party affected by an event of Force Majeure shall be suspended without any liability on its part from the performance of its obligations under this Agreement provided it uses reasonable efforts to overcome such delay or failure, except that it may not suspend any obligation to pay any amounts due and owing hereunder, but only to the extent and only for the period that its performance of such obligations is prevented by the event of Force Majeure. During the period that

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

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the performance by one of the parties of its obligations under this Agreement has been suspended by reason of an event of Force Majeure, the other party may likewise suspend the performance of all or part of its obligations hereunder to the extent that such suspension is commercially reasonable and such other party may take provisional precautions which would otherwise have constituted a violation of this Agreement for the purpose of limiting its losses caused by the Force Majeure.

 

15.                               MISCELLANEOUS.

 

15.1                        Governing Law. The rights and obligations of the parties shall not be governed by the UN Convention of Contracts for the International Sale of Goods (“CISG”). Rather, this Agreement shall be interpreted, construed and governed by and in accordance with the laws of the state of Delaware without regard to its conflict of law provisions, and jurisdiction shall lie exclusively therein.

 

15.2                        Assignment. Neither party shall, without the prior written consent of the other party, which shall not be unreasonably withheld, assign this Agreement or any part hereof, or sell, offer for sale, transfer, divest, or otherwise dispose of its rights hereunder, to a third party, except that either party may assign this Agreement to its affiliate or to a third party which succeeds to substantially all of its assets to which this Agreement relates or equity, unless such successor is a Direct Competitor of the other party. For the purpose of this clause, a “Direct Competitor” of EPMP LLC is a company that derives a substantial portion of its revenues from [***], some of which are [***] and a “Direct Competitor” of Buyer is a company that derives a substantial portion of its revenues from [***].  Nonetheless, in the event of an assignment of this Agreement, the assignment shall be subject to the assigning party requiring that: (a) its successors, heirs or assigns assume all of its obligations and responsibilities under this Agreement, and (b) this Agreement and all of its terms and conditions shall inure to benefit of and be binding on any such successor, heir or assign. The respective rights of the parties under this Agreement shall survive transfer of title and possession of any assets of the transferring or assigning party, except to the extent that the non-transferring party may otherwise specifically waive in writing.

 

15.3                        Integration. This Agreement, the NDA, and all Exhibits attached hereto, constitute the entire understanding and agreement of the parties with respect to the subject matter hereof and supersede all previous agreements or proposals, oral or written, and all negotiations, conversations or discussions heretofore had between the parties related to the subject matter of this Agreement.

 

15.4                        Survival. The obligations described in Sections 7.2, 7.3, 10.1 (for the period described therein), 13.7, 15.1, 15.2, and Articles 11 and 12 shall survive termination of this Agreement and continue thereafter in full force and effect,

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

[***] CERTAIN INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION

 

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subject to applicable statute of limitations.

 

15.5                        Amendment Waiver. This Agreement may not be released, discharged, abandoned, changed or modified in any manner, except by an instrument in writing signed on behalf of each of the parties to this Agreement by their duly authorized representative.  The failure of either party to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part of it or the right of either party after any such failure to enforce to enforce each and every such provision.  No waiver of any breach of this Agreement shall be held to be a waiver of any other or subsequent breach.

 

15.6                        Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement.  This Agreement shall become a binding agreement when one or more counterparts have been signed by each party and delivered to the other party pursuant to Section 15.9.

 

15.7                        Headings. The titles and headings to Articles and Sections herein are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. This Agreement shall be construed without regard to any presumption or other rule requiring construction hereof against the party causing this Agreement to be drafted.

 

15.8                        No Third Party Beneficiaries. Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties to this Agreement, or their respective successors or assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

15.9                        Notices. Any notice or other communication hereunder must be given in writing and either (a) delivered in person, (b) transmitted by telex, facsimile or telecopy mechanism, provided that any notice so given is also mailed as provided in clause (c), or (c) mailed, postage prepaid, receipt requested as follows:

 

If to EPMP LLC:

EaglePicher Medical Power LLC

13136-82A Avenue,

Surrey, B.C., Canada V3W 9Y6.

Facsimile: 604 597-0814

Attention: Director of Marketing

 

If to Buyer:

Nevro Corporation
 411 Acacia Avenue

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

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Palo Alto, CA 94306
 Attention: Andre Walker

 

or to such other address or to such other person as either party shall have last designated by such notice to the other party. Each such notice or other communication shall be effective (i) if given by telecommunication, when transmitted to applicable number so specified in (or pursuant to) this Section 15.9 and an appropriate receipt is received, (ii) if given by mail, three (3) days after such communication is deposited in the mail with first class or priority postage prepaid, addressed as aforesaid or (iii) if given by any other means, when actually received at such address.

 

15.10                 Severability. If any provision of this Agreement is held invalid by a court of competent jurisdiction, the remaining provisions shall nonetheless be enforceable according to their terms. Further, if any provision is held to be overbroad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to Applicable Law and shall be enforced as amended.

 

15.11                 Relationship. This Agreement does not make either party the employee, agent or legal representative of the other for any purpose whatsoever. Neither party is granted any right or authority to assume or to create any obligation or responsibility, express or implied, on behalf of or in the name of the other party. In fulfilling its obligations pursuant to this Agreement, each party shall be acting as an independent contractor.

 

15.12                 Effective Terms and Precedence. Should there be a conflict between the language of this Agreement and the language contained in any Purchase Order, the language of this Agreement shall control.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their authorized representatives.

 

	
EAGLE   PICHER MEDICAL POWER LLC
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Emily Russell
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Senior   Counsel
    	
 
    

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

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NEVRO   CORPORATION
    
	
 
    	
 
    
	
By:
    	
/s/   Konstantinos Alataris
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
CEO
    	
 
    

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

19

 

Exhibit A

 

Specifications

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

 

[***]

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

[***] CERTAIN INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION

 

 

Exhibit B

 

Non-Disclosure Agreement

 

[Provided Separately]

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

 

Exhibit C

 

Pricing Terms

 

	
Product Description
    	
 
    	
Quantity
    	
 
    	
Unit Price
    
	
[***]
    	
 
    	
[***]
    	
 
    	
$
    	
[***]
    

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVRO

 

[***] CERTAIN INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION

 

 

Exhibit D

 

Development Plan(s)

 

[Blank]

 

PRODUCT DEVELOPMENT AND SUPPLY AGREEMENT EAGLEPICHER-NEVROExhibit 10.15(a)

 

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

This AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT (this “Agreement”), dated as of February 8, 2013, is by and among Nevro Corp., a Delaware corporation (the “Corporation”), those certain holders of Common Stock of the Corporation and holders of options to acquire shares of Common Stock of the Corporation listed on Schedule 1 hereto (together with any other Person who hereafter becomes party hereto pursuant to Section 11 hereof, each, individually, a “Significant Common Stockholder” and, collectively, the “Significant Common Stockholders”), and each holder of the Corporation’s Preferred Stock (as such term is defined below) listed on Schedule 1 hereto (together with any other Person who hereafter becomes party hereto pursuant to Section 11 hereof, each, individually, an “Investor” and, collectively, the “Investors” and together collectively with the Significant Common Stockholders, the “Stockholders”).  A list of the name, address and shares of each class of capital stock of the Corporation owned by each Stockholder is attached hereto as Schedule 1 (which Schedule 1 shall be amended from time to time to reflect changes and additions thereto).

 

RECITALS

 

WHEREAS, certain of the Investors (the “Existing Investors”) hold shares of the Corporation’s Series A Convertible Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) and/or shares of Common Stock issued upon conversion thereof and/or  shares of the Corporation’s Series B Convertible Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”) and/or shares of Common Stock issued upon conversion thereof and possess information rights, preemptive rights, rights of first offer and other rights and are subject to certain obligations pursuant to an Amended and Restated Stockholders’ Agreement dated as of July 15, 2011 by and among the Corporation and such Existing Investors (the “Prior Agreement”);

 

WHEREAS, pursuant to Section 13(b) of the Prior Agreement, the Prior Agreement may be amended, and any provision therein waived, with the written consent of not less than 55% of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted basis;

 

WHEREAS, the undersigned Existing Investors constituting not less than 55% of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted basis desire to amend and restate the Prior Agreement and to accept the rights created pursuant hereto in lieu of the rights granted to them under the Prior Agreement;

 

WHEREAS, pursuant to a Series C Convertible Preferred Stock Purchase Agreement, dated of even date herewith, between the Corporation and certain of the Investors (the “Series C Stock Purchase Agreement”), the Corporation has agreed to issue and sell to certain of the Investors, and certain of the Investors have agreed to purchase from the Corporation, shares of the Corporation’s Series C Convertible Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”); and

 

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WHEREAS, in connection with the issuance of the Series C Preferred Stock, the Corporation and the Stockholders deem it desirable to enter into this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the recitals and the mutual premises, covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                Definitions; Rules of Construction.

 

(a)                                 In addition to capitalized terms defined elsewhere in this Agreement, the following capitalized terms shall have the following meanings when used in this Agreement:

 

“Affiliate” — when used with respect to a specified Person, another Person that either directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the Person specified.  For purposes of this definition, “control” (and its derivatives) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of equity, voting or other interests, as trustee or executor, by contract or otherwise.

 

“Affiliated Fund” — with respect to a Stockholder that is a limited liability company or a limited liability partnership, a fund or entity managed by the same manager or managing member or general partner or management company or by an entity controlling, controlled by, or under common control with such manager or managing member or general partner or management company.

 

“Board” and “Board of Directors” — the Board of Directors of the Corporation.

 

“Common Stock” — means the common stock, par value $0.001 per share, of the Corporation.

 

“Conversion Shares” — shares of Common Stock issued upon conversion of shares of Preferred Stock pursuant to the Restated Certificate.

 

“Director” — a member of the Board of Directors of the Corporation.

 

“Exchange Act” — the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rule and regulations of the Securities and Exchange Commission thereunder, as the same shall be in effect from time to time.

 

“Exempt Issuances” —  (i) the issuance or sale of Common Stock or options therefor, and the issuance of shares upon exercise of such options, up to 97,913,908 shares of Common Stock and such additional shares of Common Stock in excess of 97,913,908 as are approved by the Board, under the Corporation’s current equity incentive plan or any successor equity incentive plan or program thereto; (ii) the issuance of 500,000 shares of Common Stock

 

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issuable to Mayo Foundation for Medical Education and Research (“Mayo”) pursuant to Section 3.06 of the License Agreement; (iii) the Series A Preferred Stock or the issuance of Common Stock issuable upon conversion of such Series A Preferred Stock; (iv) the Series B Preferred Stock or the issuance of Common Stock issuable upon conversion of such Series B Preferred Stock; (v) the issuance or sale of Series C Preferred Stock pursuant to the Series C Stock Purchase Agreement or the issuance of Common Stock issuable upon conversion of such Series C Preferred Stock; (vi) the issuance of Common Stock in a Qualified Public Offering; (vii) the issuance of securities to financial institutions, equipment lessors, brokers or similar persons in connection with commercial credit arrangements, equipment financings, commercial property lease transactions or similar transactions approved by the Board, which shall include the approval of at least a majority of the Preferred Directors; (viii) issuance of equity securities or rights to purchase equity securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition or similar business combination approved by the Board, which shall include the approval of at least a majority of the Preferred Directors; (ix) issuance of securities to an entity as a component of any business relationship with such entity primarily for the purpose of (A) joint venture, technology or licensing development activities, (B) distribution, supply or manufacture of the Corporation’s products or services or (C) any other arrangements involving corporate partners primarily for purposes other than raising capital, the terms of which business relationship with such entity are approved by the Board, which shall include the approval of at least a majority of the Preferred Directors; and (x) the issuance of securities with the affirmative vote of the Requisite Holders.

 

“GAAP” — generally accepted accounting principals as in effect in the United States from time to time.

 

“Immediate Family” — with respect to any Stockholder, the parents, siblings, spouse and issue, spouses of issue and any trust for the benefit of, or the legal representative (in such capacity) of, any of the preceding persons, or any partnership substantially all of the partners of which are one or more of such persons or the Stockholder or any limited liability company substantially all of the members of which are one or more of such persons or the Stockholder.

 

“IPO” — a firm commitment underwritten public offering of Common Stock of the Corporation.

 

“License Agreement” — that certain Amended and Restated License Agreement, dated October 2, 2006, among the Corporation, Mayo and Venturi Group, LLC.

 

“Overall Percentage Interest” — with respect to any Stockholder, the percentage equivalent of a fraction the numerator of which is the total number of shares of Common Stock held by such Stockholder (including, for such purposes shares, any shares of Common Stock that such Stockholder has the right to acquire pursuant to any securities held by such Stockholder that are convertible into or exchangeable for shares of Common Stock), and the denominator of which is the total number of shares of Common Stock held by all Stockholders (including, for such purposes shares, any shares of Common Stock that any Stockholder has the right to acquire pursuant to any securities that are convertible into or exchangeable for shares of Common Stock).

 

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“Person” — an individual, a corporation, a partnership, a joint venture, a limited liability company or limited liability partnership, an association, a trust, estate or other fiduciary, any other legal entity, and any government or governmental entity.

 

“Preferred Stock” — shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and of any other series of capital stock of the Corporation issued and outstanding from time to time after the date hereof designated as preferred stock by the Corporation.

 

“Qualified Public Offering” — a firm commitment underwritten public offering of Common Stock of the Corporation that yields net proceeds to the Corporation of not less than $50,000,000 (before deduction of underwriters commissions and expenses) at an equivalent price per share of Common Stock of not less than 2.5 times the Series C Original Purchase Price (as adjusted for any equity split, equity combination, in-kind equity distribution, recapitalization or similar transaction).

 

“Registration Rights Agreement” — the Amended and Restated Registration Rights Agreement, dated as of even date herewith, among the Corporation and those Stockholders party thereto, as the same may be amended, restated or modified from time to time hereafter.

 

“Requisite Holders” — at any relevant time, Stockholders holding not less than 70% of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted basis, or if no shares of Preferred Stock are then outstanding, Stockholders holding 70% of the outstanding Conversion Shares, or if no Conversion Shares are then outstanding, Stockholders holding 70% of the shares of outstanding Common Stock (other than Conversion Shares).

 

“Restated Certificate” — the Amended and Restated Certificate of Incorporation of the Corporation, as filed with the Secretary of State of the State of Delaware on February 8, 2013, as amended from time to time.

 

“Securities Act” — the Securities Act of 1933, as amended, or any successor federal statute, and the rule and regulations of the Securities and Exchange Commission thereunder, as the same shall be in effect from time to time.

 

“Series C Original Purchase Price” — $0.463 per share for each share of Series C Preferred Stock.

 

“Shares” — shares of Common Stock, Preferred Stock and any other capital stock of the Corporation, and securities directly or indirectly exercisable for or convertible into Common Stock, Preferred Stock or any other capital stock of the Corporation.

 

“Subsidiary” — with respect to the Corporation, any Person of which securities or other ownership interests representing more than fifty percent (50%) of the ordinary voting power are, at the time as of which any determination is being made, owned or controlled by the Corporation or one or more Subsidiaries of the Corporation or by the Corporation and one or more Subsidiaries of the Corporation.

 

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(b)                                 The following provisions shall be applied wherever appropriate herein:

 

(i)                                     “herein,” “hereby,” “hereunder,” “hereof” and other equivalent words shall refer to this Agreement as an entirety and not solely to the particular portion of this Agreement in which any such word is used;

 

(ii)                                  all definitions set forth herein shall be deemed applicable whether the words defined are used herein in the singular or the plural;

 

(iii)                               wherever used herein, any pronoun or pronouns shall be deemed to include both the singular and plural and to cover all genders;

 

(iv)                              all accounting terms not specifically defined herein shall be construed in accordance with GAAP;

 

(v)                                 neither this Agreement nor any other agreement, document or instrument referred to herein or executed and delivered in connection herewith shall be construed against any party as the principal draftsperson hereof or thereof;

 

(vi)                              the descriptive headings of this Agreement are inserted for convenience of reference only and do not constitute a part of and shall not be utilized in interpreting this Agreement;

 

(vii)                           any references herein to a particular Section, Article, Exhibit or Schedule means a Section or Article of, or an Exhibit or Schedule to, this Agreement unless another agreement is specified;

 

(viii)                        the Exhibits and Schedules attached hereto are incorporated herein by reference and shall be considered part of this Agreement; and

 

(ix)                              all references to “$” or “Dollars” shall mean United States Dollars.

 

2.                          Information Rights.  Holders of not less than a number of shares of Preferred Stock representing 5% of the Preferred Stock then outstanding shall have the following rights:

 

(a)                                 upon reasonable notice to, and at times reasonably convenient for the Corporation, visit and inspect the Corporation’s properties and examine its books of account and records; provided, however, that the Corporation shall not be obligated pursuant to this Section 2(a) to provide access to any information which it reasonably considers to be a trade secret or similar confidential information or which it reasonably believes will result in a waiver of attorney-client or similar privilege;

 

(b)                                 within 120 days after the end of each fiscal year of the Corporation, an income statement for such fiscal year, a balance sheet of the Corporation and statement of stockholder’s equity as of the end of such year and a statement of cash flows for such year, such year-end financial reports to be audited and certified by a nationally recognized independent public accounting firm selected by the Corporation and reasonably acceptable to the Requisite Holders;

 

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(c)                                  within 45 days after the end of each fiscal quarter of the Corporation, an unaudited balance sheet, statements of income and cash flows and schedule of total expenses by account for such fiscal quarter, including, with respect to the statements of income, the unaudited comparative statements of income of the Corporation for the year-to-date and the current budget of the Corporation for the year-to-date, including revised projections, if any;

 

(d)                                 within 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, compared to budget and comparable period in the prior year (if applicable), as well as a written summary of operations;

 

(e)                                  within 30 days prior to the end of each fiscal year, a budget for the next fiscal year prepared on a monthly and quarterly basis;

 

(f)                                   with respect to any proposed Deemed Liquidation (as defined in the Restated Certificate), IPO or other significant corporate event (each, a “Proposed Transaction”), prior notice of such Proposed Transaction; and

 

(g)                                  with respect to the financial statements discussed in subsections (c) and (d) of this Section 2, an instrument executed by the chief financial officer or President of the Corporation and certifying that such financials were prepared in accordance with GAAP consistently applied with prior practice for earlier periods (with the exception of footnotes that may be required by GAAP); provided, that the foregoing shall not restrict the right of the Corporation to change its accounting principles consistent with GAAP.

 

3.                                Board of Directors; Observer Rights.

 

(a)                                 Each Stockholder hereby agrees to take all action necessary, including, but not limited to, the voting of any and all of such Stockholder’s Shares, the execution of written consents, the calling of special meetings, the removal of directors, the filling of vacancies on the Board, the waiving of notice and the attending of meetings, so as to cause the Board to be at all times comprised of six (6) persons to be elected/appointed as follows:

 

(i)                                     one (1) Director who shall be appointed by Bay City Capital Fund IV, L.P. (“Bay City”), so long as Bay City holds shares of Series A Preferred Stock, who shall initially be Nathan Pliam (the “Bay City Director”);

 

(ii)                                  one (1) Director who shall be appointed by Three Arch Partners IV, L.P. (“Three Arch”), so long as Three Arch holds shares of Series A Preferred Stock, who shall initially be Wilf Jaeger (the “Three Arch Director”);

 

(iii)                               one (1) Director who shall be appointed by Johnson & Johnson Development Corporation (“JJDC”), so long as JJDC holds shares of Series B Preferred Stock, who shall initially be Brad Vale (the “JJDC Director”);

 

(iv)                              one (1) Director who shall be appointed by Novo A/S (“Novo”), so long as Novo holds shares of Series C Preferred Stock, who shall initially be Peter Bisgaard (the

 

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“Novo Director” and together with the Bay City Director, Three Arch Director and JJDC Director, the “Preferred Directors”);

 

(v)                                 one (1) Director who shall be the then current Chief Executive Officer of the Corporation as appointed from time to time by the Board (the “CEO Director”), who shall initially be Michael DeMane; and

 

(vi)                              one (1) Director who shall (a) be neither an employee nor a consultant of the Corporation, and otherwise be independent of the Corporation (as defined under NYSE rules), (b) shall be elected by the holders of at least a majority of the shares of Common Stock and Preferred Stock, voting together as a single class on an as-converted basis, and (c) shall be acceptable to each of the JJDC Director and the Novo Director, who shall initially be Frank Fischer (the “Independent Director”).

 

(b)                                 A Director may be removed either (i) with or without cause by the Stockholder or group of Stockholders who appointed such Director, or (ii) by the affirmative vote or written consent of a majority of the remaining Directors (y) if such Director becomes incapable of fulfilling his or her obligations because of injury or physical or mental illness and such incapacity shall exist for 30 working days in the aggregate during any consecutive six (6) month period or (z) if a Director ceases to satisfy the requirements of clauses 3(a)(v) or 3(b).  Any deceased, removed or resigning Director shall be replaced by the Stockholder or group of Stockholders, as the case may be, entitled to appoint such deceased, removed or resigning Director.

 

(c)                                  The Corporation shall invite a representative of each Stockholder with Observer Rights to attend all meetings of its Board of Directors in a nonvoting observer capacity and, in this respect, shall give each such Stockholder with Observer Rights copies of all notices, minutes, consents and other materials that it provides to its directors; provided, however, that each representative of a Stockholder with Observer Rights shall agree to hold in confidence and trust all information so provided; and, provided further, that the Corporation reserves the right to withhold any information and to exclude any or all such representative from any meeting or portion thereof if the Corporation (i) believes in good faith, upon the advice of counsel, that access to such information or attendance at such meeting or portion thereof is reasonably necessary to preserve the attorney-client privilege, (ii) believes in good faith is reasonably necessary to protect highly confidential proprietary information or (iii) is discussing a matter involving or relating to such Stockholder with Observer Rights.  The representatives must be persons acceptable to the Corporation.  “Stockholder with Observer Rights” means each of AMV Partners II, L.P., JJDC and Novo.

 

(d)                                 In the event the Corporation creates any committee of the Board, including but not limited to an audit committee and/or compensation committee of the Board, the JJDC Director and the Novo Director shall each have the right to be a member of such committee(s) of the Board.

 

(e)                                  Upon request, the Corporation will reimburse its directors and representatives of the Stockholders with Observer Rights for reasonable travel expenses incurred traveling to and from any meetings of the Company’s Board of Directors.  To the extent reimbursement is

 

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requested, the Corporation will make payments for such expenses within 30 days after receipt of an invoice therefor.

 

4.                                Pre-Emptive Rights.

 

(a)                                 Each holder of shares of Preferred Stock, including any applicable Conversion Shares (for the purpose of this Section 4, each a “Pre-Emptive Right Holder”) shall have the right to purchase such Pre-Emptive Right Holder’s Overall Percentage Interest (for the purpose of this Section 4, the “Pre-Emptive Allocation”), or any lesser number, of any new Shares, or any other equity securities of the Corporation, including, without limitation, securities convertible into or exchangeable for equity securities of the Corporation, to purchase any of the foregoing that the Corporation may, from time to time, propose to sell and issue, in each case, other than Exempt Issuances, stock splits, stock dividends, in-kind equity distributions and recapitalizations (collectively, “New Securities”).

 

(b)                                 In the event the Corporation proposes to undertake an issuance of New Securities, it will give each Pre-Emptive Right Holder written notice of such issuance (which notice shall be delivered at least 15 days prior to such issuance), describing the New Securities and the price and terms upon which the Corporation proposes to issue the same, and setting forth the number of shares or other number of New Securities which such Stockholder is entitled to purchase pursuant to such Stockholder’s Pre-Emptive Allocation and the aggregate purchase price therefor.  Each Pre-Emptive Right Holder will have ten (10) days from the date of delivery of any notice to agree to purchase such New Securities, respectively, up to such Stockholder’s Pre-Emptive Allocation, or any lesser number, for the price and upon the terms specified in the notice (provided that the Pre-Emptive Right Holders shall be entitled to pay cash in lieu of any non-cash consideration) by giving written notice to the Corporation and stating therein the quantity of New Securities to be purchased.  If not all of the Pre-Emptive Right Holders elect to purchase their full Pre-Emptive Allocation of New Securities, then the Corporation shall notify in writing the fully-participating Pre-Emptive Right Holders of such and offer such holders the right to acquire such unsubscribed New Securities.  Each fully-participating Pre-Emptive Right Holder so notified shall have the right to purchase its pro rata share of the unsubscribed New Securities (in proportion to the Overall Percentage Interests of all participating Pre-Emptive Right Holders) within five (5) days from the date of such notice from the Corporation by giving written notice to the Corporation and stating therein the quantity of unsubscribed New Securities to be purchased.

 

(c)                                  In the event any Pre-Emptive Right Holder fails to exercise such right of first refusal within said ten (10) day period (or, as applicable, such 15-day period), the Corporation will have 75 days thereafter to sell the New Securities as to which such Pre-Emptive Right Holder’s right was not exercised, at a price and upon such other terms no more favorable to the purchasers thereof than those specified in the Corporation’s notice.  In the event the Corporation has not sold such New Securities within said 75-day period, the Corporation will not thereafter issue or sell any New Securities without first offering such New Securities to each Pre-Emptive Rights Holder in the manner provided above.

 

(d)                                 The pre-emptive rights granted by this Section 4 shall be exercisable only by “accredited investors” as defined under Section 501 of Regulation D of the Securities Act.

 

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(e)                                  The closing of any sale of New Securities shall be on the date set forth in the notice provided by the Corporation in Section 4(b); provided, that such date shall be extended as to any participating Pre-Emptive Right Holder for up to 30 days (or such longer period as may be approved by the Corporation, which approval shall not be unreasonably delayed or withheld) for purposes of obtaining any necessary governmental approvals and to call capital from limited partners, if applicable.  The exercise or non-exercise of the rights of the Pre-Emptive Right Holders under this Section 4 shall not adversely affect their rights to participate in subsequent offerings of New Securities subject to Section 4.

 

5.                                Restrictions on Transfer.  Except as expressly permitted in Sections 6, 7 and 8 of this Agreement, no Stockholder shall in any way sell, exchange, transfer, hypothecate, negotiate, gift, convey in trust, pledge, assign, encumber, or otherwise dispose of all or any portion of its Shares, including by operation of law (a “Transfer”), without the prior written consent of the Corporation, which may be granted or withheld in the Corporation’s sole discretion.  Under no circumstances shall a Transfer be made to a competitor of the Corporation. Any Transfer not expressly permitted herein shall be void and of no effect.

 

6.                                Certain Permitted Transfers.

 

(a)                                 Except as otherwise provided in this Section 6 and subject only to Sections 7 and 8 hereof, and to any restrictions set forth in any other agreement between a Stockholder and the Corporation, a Stockholder may Transfer all or a portion of its Shares (i) to one or more Affiliated Funds, or to any director, officer, partner, retired partner, member, retired member or stockholder of such Affiliated Funds, (ii) to the Corporation in accordance with any agreement with the Corporation and (iii) to such Stockholder’s Immediate Family and/or for estate planning purposes.

 

(b)                                 Except as otherwise provided herein or in any other agreement a Stockholder may have with the Corporation, a Stockholder may sell Shares to an unaffiliated third party only if (i) such third party makes a “bona fide” offer to purchase such Shares, and (ii) the Corporation and the other Stockholders decline their right of first refusal under Section 7 hereof to purchase such Shares.

 

(c)                                  For the purposes of Sections 6(b),  7(a) and 8(a), no offer to purchase shall be considered “bona fide” unless, at a minimum, the offer (i) is not assignable by the proposed buyer; (ii) provides for a closing not less than 30 days nor more than 120 days from the date of the offer to purchase; and (iii) is for cash or other consideration the value of which may readily be determined by the Board.  In the event the Board properly raises an objection that the proposed offer is not “bona fide”, the selling Stockholder shall be accorded one opportunity to provide, within ten (10) days, such additional assurances as the Board (or any applicable committee thereof) may request with respect to such proposed buyer.

 

(d)                                 No Transfer may be made pursuant to this Section 6 which would violate or be inconsistent with any agreement a Stockholder may have with the Corporation or violate, or which would result in registration being required under, any applicable federal or state laws relating to securities or investment companies or advisors.  No Transfer may be made unless the transferee (i) agrees in writing with the Corporation to be bound by the provisions of this

 

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Agreement as though it were a Stockholder and to be subject to the terms of the Stock Purchase Agreement and other related agreements for the benefit of the Corporation as though it were a purchaser thereunder; (ii) unless waived by the Board (or any applicable committee thereof), causes to be delivered to the Corporation, at such transferee’s sole cost and expense, a favorable opinion of legal counsel reasonably acceptable to the Board (or such committee), to the effect that such Transfer does not violate or result in registration being required under, any applicable federal or state laws relating to securities or investment companies or advisors; (iii) executes and delivers such other instruments and documents, in form and substance reasonably satisfactory to the Board (or any applicable committee thereof), necessary to cause the transferee to become a Stockholder; and (iv) unless waived by the Board (or any applicable committee thereof), pays all reasonable expenses in connection therewith, including, but not limited to, the cost of preparation and filing of any amendment of this Agreement or the Restated Certificate necessary or desirable in connection therewith.  Upon compliance with all provisions hereof, all other Stockholders agree to execute and deliver such amendments hereto as are necessary to cause such transferee to become a Stockholder of the Corporation.

 

(e)                            A transferee who becomes a Stockholder pursuant to this Section 6 shall have, to the extent transferred, the rights and powers, and shall be subject to the restrictions and liabilities, of a Stockholder under this Agreement.

 

7.                                Right of First Refusal.

 

(a)                                 Subject to any repurchase or similar rights or obligations the Corporation may have in any agreement with a Stockholder, if any Stockholder desires to Transfer all or any portion of its Shares in accordance with this Agreement (other than (i) a Transfer pursuant to Section 6, (ii) shares of Series B Preferred Stock or Common Stock issued upon conversion of the Series B Preferred Stock or (iii) shares of Series C Preferred Stock or Common Stock issued upon conversion of the Series C Preferred Stock, which shall not be considered Shares for purposes of this Section 7), then such Stockholder (the “Section 7 Selling Stockholder”) shall first offer in a written notice to Transfer such Shares to the Corporation, specifying the terms and conditions of such Transfer as offered by the third party in a “bona fide” offer (the “Section 7 Offer Notice”).  The Corporation shall have thirty (30) days from the date written notice was received to accept the offer to Transfer all or a portion of the Shares subject to the Section 7 Offer Notice, and if the Corporation does not accept the offer provided in the Section 7 Offer Notice within such period it shall be deemed to have rejected the offer.  If the Corporation does not accept such offer, or only accepts the offer with respect to a portion of the offered Shares, then at the expiration of the thirty (30) day notice period (or during the thirty (30) day notice period to the extent the right of first refusal has earlier been expressly rejected in writing by the Corporation during such period), the Section 7 Selling Stockholder shall offer to Transfer such Shares, or the portion of such Shares which the Corporation did not accept, as applicable, to the holders of Preferred Stock who are not Section 7 Selling Stockholders (the “Non-Transferring Holders”) and shall deliver to such Non-Transferring Holders a subsequent Section 7 Offer Notice (the “Subsequent Offer Notice”).  The Non-Transferring Holders shall have thirty (30) days from the date the Subsequent Offer Notice is received to accept the offer to Transfer all or a portion of the Shares subject to the Subsequent Offer Notice, and any Non-Transferring Holder who does not accept the offer provided in the Subsequent Offer Notice within such period shall be deemed to have rejected the offer.  In the event that more than one Non-Transferring Holder

 

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wishes to accept such offer with respect to all or a portion of the Shares in such offer, and if there are enough Shares available for each such Non-Transferring Holder to be allocated its desired number of Shares, then each such Non-Transferring Holder shall receive the number of Shares it requested.  In the event that more than one Non-Transferring Holder wishes to accept such offer with respect to all or a portion of the Shares in such offer, and there are not enough Shares available for each such Non-Transferring Holder to be allocated its desired number of Shares, then each such Non-Transferring Holder shall have the right to purchase the offered Shares pro rata based on the Overall Percentage Interest of each such Non-Transferring Holder to the combined Overall Percentage Interest of all Non-Transferring Holders purchasing the Shares pursuant to this Section 7(a) or as the Non-Transferring Holders may otherwise agree in writing.  If any Shares remain unallocated thereafter and there remains at least one (1) Non-Transferring Holder that still wishes to be allocated Shares, any such Non-Transferring Holder(s) shall be allocated such Shares by repeating the procedures described in the preceding two sentences.  The closing of any Transfer pursuant to this Section 7(a) shall occur in accordance with the terms and provisions of the offer (provided that the Corporation and the Non-Transferring Holder, as the case may be, shall be entitled to pay cash in lieu of any non-cash consideration in an amount equal to the non-cash consideration) and this Agreement.  With respect to the Shares which are to be Transferred pursuant to this Section 7(a), each Section 7 Selling Stockholder shall cause such Shares to be Transferred free and clear of all liens, claims, encumbrances and other restrictions (other than as set forth in this Agreement). If neither the Corporation nor the Non-Transferring Holders accept such offer pursuant to this Section 7(a), or if they accept such offer only with respect to a portion of the offered Shares, then at the expiration of the thirty (30) day notice period applicable to the Non-Transferring Holders (or during such thirty (30) day notice period to the extent the right of first refusal has earlier been expressly rejected in writing by all Non-Transferring Holders during such period), subject only to Sections 5,  6 and 7, the Section 7 Selling Stockholder may Transfer the offered Shares, or the portion of the offered Shares remaining, as applicable, to the proposed Transferee, provided that such Transfer occurs within sixty (60) days after the expiration of such thirty (30) day period and is made on terms and conditions no more favorable to the Transferee than the terms and conditions specified in the Section 7 Offer Notice.

 

(b)           Any proposed Transfer by a Section 7 Selling Stockholder not consummated within the time periods set forth in this Section 7 shall again be subject to this Section 7 and shall require compliance by a Section 7 Selling Stockholder with the procedures described in this Section 7.  The exercise or non-exercise of the rights of the Corporation and the Non-Transferring Holders under this Section 7 with respect to any proposed Transfer shall not adversely affect their rights with respect to subsequent Transfers by Section 7 Selling Stockholders under this Section 7.

 

(c)         The provisions of this Section 7 shall not apply to a Transfer otherwise permitted by Section 6.

 

8.           Co-Sale Right.

 

(a)           Subject to the limitations of this Section 8, to the extent that the Corporation and the Non-Transferring Holders do not exercise their respective Rights of First Refusal with respect to all or any part of the offered Shares pursuant to Section 7 hereof, then to the extent that

 

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the Section 7 Selling Holder is a person or entity listed on Schedule 2 attached hereto (a “Section 8 Seller”), such Section 8 Seller shall deliver an additional notice (the “Co-Sale Notice”) upon expiration of the 30 day period following delivery of the Subsequent Offer Notice to each holder of Preferred Stock who has not exercised its Right of First Refusal pursuant to Section 7 (a “Co-Sale Preferred Stock Holder”) setting forth the number of Shares which are not being purchased by the Corporation and the Non-Transferring Holders pursuant to their respective Rights of First Refusal (“Residual Shares”), and each Co-Sale Preferred Stock Holder shall have the right to sell up to its Pro Rata Co-Sale Share (as defined below) of the Residual Shares on the same terms and conditions as specified in the Section 7 Offer Notice.  To exercise its rights hereunder, each Co-Sale Preferred Stock Holder (a “Selling Preferred Stock Holder”) must have provided a written notice to the Section 8 Seller within ten (10) days after delivery of the Co-Sale Notice, indicating the number of shares it holds that it wishes to sell pursuant to this Section 8(a).

 

(b)           A Selling Preferred Stock Holder’s “Pro Rata Co-Sale Share” shall be equal to that number of Residual Shares equal to the product obtained by multiplying (x) the number of Residual Shares by (y) a fraction, (i) the numerator of which shall be the number of Shares (calculated on an as-converted to Common Stock basis) held on the date of the Section 7 Offer Notice by such Selling Preferred Stock Holder and (ii) the denominator of which shall be the sum of (A) the number of Shares (calculated on an as-converted to Common Stock basis) held on the date of the Section 7 Offer Notice by all Selling Preferred Stock Holders participating in such sale and (B) the total number of Shares held by the Section 8 Seller on the date of the Section 7 Offer Notice by such Section 8 Seller.

 

(c)           Within fifteen (15) days after the delivery of the Co-Sale Notice, the Section 8 Seller will give written notice to the Corporation and each Selling Preferred Stock Holder specifying the number of Residual Shares to be sold by each Selling Preferred Stock Holder exercising its Right of Co-Sale (the “Co-Sale Confirmation Notice”).

 

(d)           Subject to compliance with applicable state and federal securities laws, the sale of the Residual Shares by the Selling Preferred Stock Holders shall occur within ten (10) days after delivery of the Co-Sale Confirmation Notice (the “Co-Sale Closing”).  If a Selling Preferred Stock Holder exercised the Right of Co-Sale in accordance with this Section 8, then such Selling Preferred Stock Holder shall deliver to the Section 8 Seller at or before the Co-Sale Closing one or more certificates, properly endorsed for Transfer, representing the number of Residual Shares to which the Selling Preferred Stock Holder is entitled to sell pursuant to this Section 8 (or that number of shares of Preferred Stock which is at such time convertible into such number of Residual Shares).  At the Co-Sale Closing, the Section 8 Seller shall cause such certificates or other instruments to be Transferred and delivered to the Transferee pursuant to the terms and conditions specified in the Section 7 Offer Notice, and the Section 8 Seller will remit, or will cause to be remitted, to each Selling Preferred Stock Holder, at the Co-Sale Closing, that portion of the proceeds of the Transfer to which each Selling Preferred Stock Holder is entitled by reason of each Selling Preferred Stock Holder’s participation in such Transfer pursuant to the Right of Co-Sale.

 

(e)           If any of the Shares that were the subject of the Section 7 Offer Notice remain available after the exercise of all Rights of First Refusal and all Rights of Co-Sale under Sections

 

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7 and 8 hereof, then the Section 8 Seller shall be free to Transfer, any such remaining shares to the proposed Transferee on the terms set forth in the Section 7 Offer Notice; provided, however, that if such Shares are not so Transferred during the seventy five (75) day period following the deemed delivery of the Section 7 Offer Notice, then the Section 8 Seller may not Transfer any of such remaining Shares without complying again in full with the provisions of this Agreement.

 

(f)          The provisions of this Section 8 shall not apply to and shall be subordinate to any Transfer or exercise of rights contemplated by Section 7.  The provisions of this Section 8 shall not apply to any Transfer permitted by Section 6(a).  In the event of any transfer pursuant to this Section 8, the transferee of the Shares shall hold the Shares so acquired with all the rights conferred by, and subject to, all the restrictions imposed by this Agreement.

 

9.           Additional Covenants.

 

(a)           JJDC and Novo Information Rights; Disclosure.

 

(i)            So long as JJDC owns at least 50% of the Shares issued to JJDC pursuant to the Series B Preferred Stock Purchase Agreement dated July 15, 2011, once each fiscal year, upon request by JJDC, an appropriate officer of the Corporation shall meet with an appropriate representative from JJDC, or one or more of its Affiliates, at a to be mutually agreed upon time and place to update such person with respect to significant corporate events.  In addition, the Corporation will not make any written or other public disclosure regarding JJDC without the prior written consent of JJDC, except as may be required by law (including applicable federal and state securities laws).

 

(ii)           So long as Novo owns at least 50% of the Shares issued to Novo pursuant to the Series C Stock Purchase Agreement, once each fiscal year, upon request by Novo, an appropriate officer of the Corporation shall meet with an appropriate representative from Novo, or one or more of its Affiliates, at a to be mutually agreed upon time and place to update such person with respect to significant corporate events.  In addition, the Corporation will not make any written or other public disclosure regarding Novo without the prior written consent of Novo, except as may be required by law (including applicable federal and state securities laws).

 

(b)           Key Man Insurance.  The Corporation will use all commercially reasonable efforts to maintain in full force key man insurance on the Corporation’s Chief Executive Officer in the amount of at least $2,000,000.

 

(c)           Product Liability Insurance.  The Corporation will use all commercially reasonable efforts to maintain in full force product liability insurance in the amount of at least $3,000,000.

 

(d)           Directors and Officers Insurance.  The Corporation will use all commercially reasonable efforts to maintain in full force directors and officers liability insurance in the amount of at least $5,000,000.

 

(e)           Novo Approval.  The Corporation shall not alter or change the powers, preferences, or special rights of the Series C Preferred Stock so as to affect the shares of Series C Preferred Stock adversely without the prior written consent of Novo.  For the sake of clarity, the

 

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sale and issuance of a new series of Preferred Stock shall not be deemed an alteration or change of the powers, preferences, or special rights of the Series C Preferred Stock.

 

(f)            Limitation of Liability.  Any liability of an Investor (to the Corporation or any other person) under this Agreement (i) shall not be joint and several with the other Investors and (ii) to the extent money damages are determined to provide an adequate remedy for any breach of the provisions of this Agreement, such money damages shall be capped at the amount of such Investor’s aggregate investment in the Preferred Stock.

 

10.        Drag Along Rights.

 

(a)           If the holders of at least 70% of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted basis (the “Triggering Stockholders”), shall approve in writing or by meeting, as evidenced by a writing reflecting such approval, (i) the sale, lease, exchange, license, or other disposition of all or substantially all of the Corporation’s assets, including, without limitation, the sale or license of all or substantially all of the Corporation’s intellectual property other than the ordinary course, in one transaction or a series of related transactions, which if held directly by the Corporation would constitute all or substantially all of the Corporation’s assets to be followed promptly by the distribution of the proceeds, if any; (ii) a merger, tender offer, reorganization, business combination or other transaction as a result of which the holders of the Corporation’s issued and outstanding voting securities immediately before such transaction (including a sale of securities) own or control less than a majority of the voting securities of the continuing or surviving entity immediately after such transaction (other than in connection with an internal restructuring, reorganization or recapitalization of the capital stock of the Corporation where there is no substantial change to the relative ownership percentages of the Corporation’s stockholders or any other rights, as applicable to any successor entity or an equity financing in which the Corporation is the surviving corporation) or (iii) the acquisition (in one or more transactions) by any Person or Persons acting together or constituting a “group” under Section 13(d) of the Exchange Act together with any affiliates thereof (other than stockholders as of the date of this Agreement and their respective affiliates) of beneficial ownership (as defined in Rule 13d-3 under such Exchange Act) or control, directly or indirectly, of more than 50% of the total voting power of all classes of capital stock entitled to vote generally in the election of members of the Board (clauses (i), (ii) and (iii) collectively referred to as a “Liquidation Transaction”), then the Corporation shall provide written notice of such approval (the “Sale Notice”) to the other Stockholders (the “Non-Triggering Stockholders”), which notice shall describe the Liquidation Transaction in reasonable detail, including the proposed time and place of the closing and the consideration to be received by the Corporation and/or its stockholders. Thereafter, each of the Stockholders shall be obligated to and shall: (A) sell, transfer and deliver, or cause to be sold, transferred and delivered, to such third party all of its shares of each class of capital stock of the Corporation in the Liquidation Transaction at the closing thereof on the same terms and for the same consideration as that received by the Triggering Stockholders for shares of such class of capital stock (and deliver certificates for such shares at the closing, free and clear of all liens and encumbrances); and (B) if stockholder approval of the Liquidation Transaction is required, vote all of its shares of capital stock of the Corporation, or provide an irrevocable proxy (which shall be deemed to be coupled with an interest) to vote its shares, in favor thereof.

 

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(b)           The Non-Triggering Stockholders shall take all actions reasonably requested by the Triggering Stockholders in connection with the consummation of the Liquidation Transaction, including, without limitation, the execution and delivery of such certificates, agreements, and instruments and the taking of such other actions reasonably necessary to effectuate the Liquidation Transaction; provided, however, (i) that no Non-Triggering Stockholder shall be required to make any representation, covenant (including any covenant restricting its business operations) or warranty in connection with such Liquidation Transaction other than representations and warranties related to ownership of the Shares held by such Non-Triggering Stockholder and the authority and ability to convey title to such Shares; (ii) that a Non-Triggering Stockholder shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with the Liquidation Transaction, other than the Corporation; and (iii) that the liability for indemnification, if any, of such Non-Triggering Stockholder in the Liquidation Transaction and for the inaccuracy of any representations and warranties made by the Corporation in connection with such Liquidation Transaction, is several and not joint with any other Person, and is pro rata in proportion to, and does not exceed, the amount of consideration actually paid to such Non-Triggering Stockholder in connection with such Liquidation Transaction.

 

(c)           The closing of any Liquidation Transaction shall be held at such time and place as the Corporation (if a merger, consolidation, or sale of assets) or the Triggering Stockholders (if a sale of stock) shall reasonably specify.  At such closing, the Stockholders shall deliver certificates representing the Shares to be sold, if any, duly endorsed for transfer and accompanied by all requisite stock transfer taxes, if any, and the Shares to be transferred shall be free and clear of any liens, claims or encumbrances (other than restrictions imposed by this Agreement and other agreements among the Corporation and its stockholders).  In addition to any representations and warranties set forth above, each of the Stockholders shall further represent and warrant that it is the record and beneficial owner of such Shares and make such additional representations and warranties and related indemnities relating to its ownership of the Shares as shall be customary in transactions of a similar nature.

 

11.        Subsequent Stockholders.  No Stockholder will transfer any Shares to any Person unless such Person agrees by a written consent or joinder to be bound by the terms of this Agreement in the same capacity as though he or she or it were an original signatory hereto.  In the event that after the date of this Agreement, the Corporation enters into an agreement to issue shares of capital stock to (a) any member of the Board, (b) any executive officer of the Corporation or (c) any other Person, following which such Person shall hold Shares constituting one percent (1%) or more of the Corporation’s then outstanding capital stock (treating for this purpose all shares of Common Stock issuable upon exercise of or conversion of outstanding options, warrants or convertible securities, as if exercised and/or converted or exchanged), then, the Corporation shall cause such member of the Board, executive officer of the Corporation or such other Person, as a condition precedent to entering into such agreement, to become a party to this Agreement, agreeing to be bound by and subject to the terms of this Agreement as a Stockholder hereunder and thereafter such member of the Board, executive officer of the Corporation or such other Person shall be deemed to be an Investor and Stockholder, or Significant Common Stockholder and Stockholder, for all purposes hereunder, as applicable.

 

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12.        Legends.  Each certificate of the signatories hereto representing Shares shall bear the following legends until such time as the Shares represented thereby are no longer subject to the provisions hereof:

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

THE VOTING, SALE, TRANSFER, ENCUMBRANCE OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A STOCKHOLDERS’ AGREEMENT AMONG NEVRO CORP., AND CERTAIN HOLDERS OF ITS OUTSTANDING CAPITAL STOCK (AS THE SAME MAY BE AMENDED, MODIFIED, SUPPLEMENTED OR RESTATED FROM TIME TO TIME), A COPY OF WHICH MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF NEVRO CORP.”.

 

13.        Entire Agreement; Amendment; Waiver; Termination.

 

(a)           This Agreement, the Stock Purchase Agreement and the Registration Rights Agreement (and any other agreements contemplated hereby or thereby) among the Corporation and any Stockholder, constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements, understandings and negotiations, both written and oral, between the parties with respect to the subject matter hereof or thereof.  No representation, inducement, promise, understanding, condition or warranty not set forth in this Agreement or in the applicable agreement listed above has been made or relied upon by any party to this Agreement.  This Agreement is not intended to confer upon any Person other than the parties and the Corporation any rights or remedies hereunder.

 

(b)           Any provision of this Agreement may be amended or waived if such amendment or waiver is in writing and approved by the Requisite Holders and the Corporation; provided, however, that if any proposed amendment or waiver would reasonably be expected to have a

 

16

 

disproportionate adverse effect on the holders of Common Stock as compared to holders of Preferred Stock, then such proposed amendment or waiver shall also require the consent of holders of a majority of the shares of Common Stock.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Stockholder and the Corporation.  Notwithstanding the foregoing, (i) the provisions of Section 3(a)(i) may be amended and the observance of any term thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of Bay City, (ii) the provisions of Section 3(a)(ii) may be amended and the observance of any term thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of Three Arch, (iii) the provisions of Section 3(a)(iii) and Section 9(a) may be amended and the observance of any term thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of JJDC, (iv) the provisions of Section 3(a)(iv), Section 9(a)(ii), Section 9(e), Section 9(f) and Section 10(b) may be amended and the observance of any term thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of Novo and (v) a Stockholder may be removed from the list of Stockholder with Observer Rights in Section 3(c) (or have its observer rights amended such to its material detriment) only with the written consent of such Stockholder.

 

(c)           No failure or delay by any party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies in this Agreement provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

(d)           This Agreement shall automatically terminate upon the consummation of a Qualified Public Offering.

 

14.        Agreement for Further Execution.  Each Stockholder agrees upon request of the Board to sign and swear to any certificate, any amendment to or cancellation of such certificate, acknowledge similar certificates or affidavits or certificates of fictitious firm name or the like (and any amendments or cancellations thereof) required by the laws of the State of Delaware, or any other jurisdiction in which the Corporation does, or proposes to do, business.  This Section 14 shall not prejudice or affect the rights of the Stockholders to approve certain amendments to this Agreement pursuant to Section 13.

 

15.        Notices.  Any notices required or permitted to be sent hereunder shall be delivered personally, via facsimile transmission (with confirmation), or mailed, via certified mail (return receipt requested), or delivered by overnight courier service to the following addresses, or such other address as any party hereto designates by written notice to the Corporation, and shall be deemed to have been given upon delivery, if delivered personally or via facsimile, three (3) Business Days after mailing, if mailed, or one (1) Business Day after delivery to the courier, if delivered by overnight courier service:

 

17

 

	
If to the Corporation:
    	
Nevro Corp.
    
	
 
    	
4040 Campbell Avenue, Suite 210
    
	
 
    	
Menlo Park, California 94025
    
	
 
    	
Attention: Chief Executive Officer
    
	
 
    	
Telecopy:  (650) 251-0005
    
	
 
    	
 
    
	
with copies sent   concurrently to:
    	
Latham & Watkins LLP
    
	
 
    	
140 Scott Drive
    
	
 
    	
Menlo Park, California 94025
    
	
 
    	
Attention: Michael W. Hall, Esq.
    
	
 
    	
Telecopy: (650) 463-2600
    

 

If to any Stockholder, to such Stockholder at the address indicated on Schedule 1 attached hereto hereto, as from time to time amended.  The Corporation or any Stockholder may change its address for Notices hereunder by a Notice given pursuant to this Section 15.

 

16.        GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE (WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

17.        CONSENT TO JURISDICTION.  EACH PARTY HERETO HEREBY IRREVOCABLY AGREES THAT ANY SUIT, ACTION, PROCEEDING OR CLAIM AGAINST IT ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OF THE RELATED AGREEMENTS, OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT THEREOF, MAY BE BROUGHT OR ENFORCED IN THE STATE OR FEDERAL COURTS LOCATED IN SAN FRANCISCO, CALIFORNIA AND EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY PROCEEDING BROUGHT IN SAN FRANCISCO, CALIFORNIA AND FURTHER IRREVOCABLY WAIVES ANY CLAIMS THAT ANY SUCH PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

18.        WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT, POWER, OR REMEDY UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE RELATED AGREEMENTS OR UNDER OR IN CONNECTION WITH ANY AMENDMENT, INSTRUMENT, DOCUMENT, OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY RELATED AGREEMENT, AND AGREE THAT ANY SUCH ACTION SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THE TERMS AND PROVISIONS OF THIS SECTION CONSTITUTE A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT.

 

18

 

19.        Successors and Assigns.  Subject to the other provisions hereof, the provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.

 

20.        Disputed Matters.  Except as otherwise provided in this Agreement, any controversy or dispute arising out of this Agreement, interpretation of any of the provisions hereof, or the action of any Stockholder hereunder shall be submitted to arbitration in San Francisco, California before the American Arbitration Association under the commercial arbitration rules then obtaining of said Association.  Any award or decision obtained from any such arbitration proceeding shall be final and binding on the parties, and judgment upon any award thus obtained may be entered in any court having jurisdiction thereof.  No action at law or in equity based upon any claim arising out of or related to this Agreement shall be instituted in any court by any Stockholder except (i) an action to compel arbitration pursuant to this Section 20 or (ii) an action to enforce an award obtained in an arbitration proceeding in accordance with this Section 20, in which case, the provisions of Sections 17 and 18 shall apply.  For the avoidance of doubt, the provisions of Sections 17 and 18 shall be subordinate to and shall only apply in connection with an action at law or in equity based upon clauses (i) and/or (ii) of the immediately preceding sentence of this Section 20.

 

21.        No Other Relationships.  Nothing herein contained shall be construed to constitute any Stockholder the legal representative or agent of any other Stockholder.  No party to this Agreement shall have any right or authority to assume, create or incur any liability or any obligation of any kind, express or implied, against or in the name of or on behalf of any other party to this Agreement. This Agreement shall not limit in any manner the carrying on either by the Stockholders or their respective Affiliates of their own respective businesses and activities.  The provisions of this Section 21 are not intended to limit or modify the restrictions or prohibitions of any employment agreements or other agreements regarding non-competition to which any Stockholder is a party.  To the extent that at law or in equity, a Stockholder has duties (including fiduciary duties) and liabilities relating thereto to the Corporation or to any other Stockholder, a Stockholder acting under this Agreement shall not be liable to the Corporation or to any Stockholder for its good faith reliance on the provisions of this Agreement.  The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Stockholder otherwise existing at law or in equity, are agreed by the parties hereto to replace such other duties and liabilities of such Stockholder.

 

22.        Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

 

23.        Remedies.  Each of the parties to this Agreement will be entitled to enforce its rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any party shall be entitled to immediate injunctive relief or specific performance without bond or the necessity of showing actual

 

19

 

monetary damages in order to enforce or prevent any violations of the provisions of this Agreement.

 

24.        Confidentiality; Public Announcements, Etc.Each Stockholder agrees, and agrees to cause its Affiliates, to at all times hold in confidence and keep secret and inviolate all of the Corporation’s confidential information, including, without limitation, all unpublished matters relating to the business, property, accounts, books, records, customers and contracts of the Corporation, which the Stockholder or any such Affiliates may or hereafter come to know; provided, however, that, except as otherwise provided herein, the Stockholder may disclose any such information (a) to its representatives and agents who agree to be bound by such confidentiality provisions, (b) that otherwise is or has become generally available to the public (without breach of this Section 24), (c) as to which Stockholder has obtained knowledge from sources other than the Corporation or the Directors or the officers of the Corporation (provided, that such source is not bound by a confidentiality agreement with the Corporation), or (d) that it is required to disclose to any governmental authority by law or subpoena or judicial process or as is required to enforce its rights hereunder or that is required to be disclosed under the rules of any stock exchange to which any Stockholder or an Affiliate is subject, in which case, the disclosing Stockholder shall provide the Corporation with prompt advance notice of such disclosure so that the Corporation shall have the opportunity if it so desires to seek a protective order or other appropriate remedy and, in connection with any disclosure required by the Securities and Exchange Commission or the rules of any stock exchange to which a Stockholder or any Affiliate of a Stockholder is subject, the disclosing Stockholder shall use reasonable efforts to obtain confidential treatment for such disclosure (to the extent reasonably available). Each Stockholder and its Affiliates agree that such confidential information shall be used only in connection with the business of the Corporation, and the Stockholder’s investment therein, and not for any other purpose, including, without limitation, in connection with any competitive or potentially competitive activities.  Any publicity release, advertisement, filing, public statement or announcement made, regarding this Agreement or any of the transactions contemplated hereby is to be first reviewed by, and must be reasonably satisfactory to, the Corporation.

 

25.        Captions.  The captions in this Agreement are included for convenience or reference only and shall be ignored in the construction or interpretation hereof.

 

26.        Equity Splits.  All references to numbers of units in this Agreement shall be appropriately adjusted to reflect any dividend, split, combination or other recapitalization of equity of the Corporation occurring after the date of this Agreement.

 

27.        Aggregation of Equity. All Shares held by any Affiliates of any Stockholder shall be aggregated together for the purposes of determining the availability of any rights of such Stockholder under this Agreement.

 

28.        Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and such counterparts together shall constitute one instrument.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

 

20

 

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

 

 

	
 
    	
NEVRO   CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael DeMane
    
	
 
    	
 
    	
Name:
    	
Michael   DeMane
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
NOVO   A/S
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kim L. Dueholm
    
	
 
    	
 
    	
Name:
    	
Kim   L. Dueholm
    
	
 
    	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address:
    	
Tuborg   Havnevej 19
    
	
 
    	
 
    	
 
    	
DK   2900 Hellerup
    
	
 
    	
 
    	
 
    	
Denmark
    
					

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
JOHNSON &   JOHNSON DEVELOPMENT
    
	
 
    	
CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brad Vale
    
	
 
    	
 
    	
Name:
    	
Brad   Vale
    
	
 
    	
 
    	
Title:
    	
Vice   President, Head JJDC
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
6500   Paseo Padre Dr.
    
	
 
    	
 
    	
Fremont,   CA 94555
    
	
 
    	
 
    	
 
    
	
With a Copy to:
    	
 
    	
Attn:   Jayne Zall
    
	
 
    	
 
    	
Assistant   General Counsel
    
	
 
    	
 
    	
One   Johnson & Johnson Plaza
    
	
 
    	
 
    	
New   Brunswick, NJ 08933
    
						

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
ABERDARE   VENTURES III, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Aberdare   GP III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   John H. Odden
    
	
 
    	
 
    	
 
    	
Name:   John H. Odden
    
	
 
    	
 
    	
 
    	
Title:   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ABERDARE   PARTNERS III, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Aberdare   GP III, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   John H. Odden
    
	
 
    	
 
    	
 
    	
Name:   John H. Odden
    
	
 
    	
 
    	
 
    	
Title:   Manager
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
BAY   CITY CAPITAL FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Bay   City Capital Management IV LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Bay   City Capital LLC
    
	
 
    	
 
    	
Its:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Carl Goldfischer
    
	
 
    	
 
    	
 
    	
Name:   Carl Goldfischer
    
	
 
    	
 
    	
 
    	
Title:   Manager and Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BAY   CITY CAPITAL FUND IV
    
	
 
    	
CO-INVESTMENT   FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Bay   City Capital Management IV LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Bay   City Capital LLC
    
	
 
    	
 
    	
Its:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Carl Goldfischer
    
	
 
    	
 
    	
 
    	
Name:   Carl Goldfischer
    
	
 
    	
 
    	
 
    	
Title:   Manager and Managing Director
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
THREE   ARCH PARTNERS IV, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Three   Arch Management IV, L.L.C.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Wilfred Jaeger
    
	
 
    	
 
    	
 
    	
Name:   Wilfred Jaeger
    
	
 
    	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THREE   ARCH ASSOCIATES IV, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Three   Arch Management IV, L.L.C.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Wilfred Jaeger
    
	
 
    	
 
    	
 
    	
Name:   Wilfred Jaeger
    
	
 
    	
 
    	
 
    	
Title:   Managing Member
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

	
 
    	
MPM   BIOVENTURES IV-QP, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
MPM   BioVentures IV GP LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
MPM   BioVentures IV LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James P. Scopa
    
	
 
    	
Name:
    	
James   P. Scopa
    
	
 
    	
Title:
    	
Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MPM   BIOVENTURES IV GMBH & CO. BETEILIGUNGS KG
    
	
 
    	
 
    
	
 
    	
By:
    	
MPM   BIOVENTURES IV GP LLC, in its capacity
    
	
 
    	
Its:
    	
as   the Managing Limited Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
MPM   BIOVENTURES IV LLC
    
	
 
    	
Its:
    	
Managing   Member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James P. Scopa
    
	
 
    	
Name:
    	
James   P. Scopa
    
	
 
    	
Title:
    	
Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MPM   ASSET MANAGEMENT INVESTORS BV4 LLC
    
	
 
    	
By:
    	
MPM   BIOVENTURES IV LLC, its Manager
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James P. Scopa
    
	
 
    	
Name:
    	
James   P. Scopa
    
	
 
    	
Title:
    	
Member
    
				

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
MAYO   FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James A. Rogers, III
    
	
 
    	
 
    	
Name:
    	
James   A. Rogers, III
    
	
 
    	
 
    	
Title:
    	
Chair,   MCV
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MAYO   CLINIC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James A. Rogers, III
    
	
 
    	
 
    	
Name:
    	
James   A. Rogers, III
    
	
 
    	
 
    	
Title:
    	
Chair,   MCV
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
AMV   PARTNERS II, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Accuitive   Medical Ventures II, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Charles Larsen
    
	
 
    	
 
    	
 
    	
Name:
    	
Charles   Larsen
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing   Director
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
/s/ Mark B. Knudson
    
	
 
    	
MARK B. KNUDSON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MARK   B. KNUDSON REVOCABLE TRUST U/A DTD 4/18/2003
    
	
 
    	
 
    
	
 
    	
By:
    	
Mark B. Knudson, Trustee
    
	
 
    	
 
    
	
 
    	
/s/ Mark B. Knudson
    
	
 
    	
Name:
    	
Mark B. Knudson
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Dorsey & Whitney Trust Company LLC, Trustee
    
	
 
    	
 
    
	
 
    	
/s/ Troy Steinbeck
    
	
 
    	
Name:
    	
Troy Steinbeck
    
	
 
    	
Title:
    	
Chief Investment Officer
    
				

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

	
 
    	
SUSAN   J. KNUDSON REVOCABLE TRUST U/A DTD 4/18/2003
    
	
 
    	
 
    
	
 
    	
By:
    	
Susan J. Knudson, Trustee
    
	
 
    	
 
    
	
 
    	
/s/ Susan J. Knudson
    
	
 
    	
Name: Susan J. Knudson
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Dorsey &   Whitney Trust Company LLC,
    
	
 
    	
 
    	
Trustee
    
	
 
    	
 
    
	
 
    	
/s/ Troy Steinbeck
    
	
 
    	
Name: Troy Steinbeck
    
	
 
    	
Title: Chief Investment Officer
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
/s/   Sarah Brenzel Conrad
    
	
 
    	
SARAH   BRENZEL CONRAD
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
/s/ Konstantinos Alataris
    
	
 
    	
KONSTANTINOS ALATARIS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Michael DeMane
    
	
 
    	
MICHAEL   DEMANE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Andrew Galligan
    
	
 
    	
ANDREW   GALLIGAN
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Andre Walker
    
	
 
    	
ANDRE   WALKER
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

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

 

 

	
 
    	
/s/   Robert S. Nickoloff
    
	
 
    	
ROBERT   S. NICKOLOFF
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

IN WITNESS WHEREOF, the party below has duly executed this Agreement as of March 5, 2013.

 

 

	
 
    	
NEA   VENTURES 2013, LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Louis S. Citron
    
	
 
    	
 
    	
Name:   Louis S. Citron
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEW   ENTERPRISE ASSOCIATES 14, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
NEA   Partners 14, L.P.
    
	
 
    	
By:
    	
NEA   14 GP, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Louis S. Citron
    
	
 
    	
 
    	
Name:   Louis S. Citron
    
	
 
    	
 
    	
Title:   Chief Legal Officer
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

IN WITNESS WHEREOF, the party below has duly executed this Agreement as of March 5, 2013.

 

 

	
 
    	
COVIDIEN   GROUP S.A.R.L.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michelangelo Federico Stefani
    
	
 
    	
 
    	
Name:   Michelangelo Federico Stefani
    
	
 
    	
 
    	
Title:   General Manager
    

 

SIGNATURE PAGE TO NEVRO CORP.

AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

SCHEDULE 1

 

STOCKHOLDER LEDGER

 

	
Name/Address:
    	
 
    	
No. of Shares
   of
   Common
   Stock
    	
 
    	
No. of Shares of
   Series A
   Preferred Stock
    	
 
    	
No. of Shares of
   Series B
   Preferred Stock
    	
 
    	
No. of Shares of
   Series C
   Preferred Stock
    	
 
    
	
Novo A/S 
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
43,196,544
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Johnson & Johnson   Development Corporation
    Attn: Brad Vale  
    6500 Paseo Padre Dr.  
    Fremont, CA 94555  

With a Copy to:  

Attn: Jayne Zall  

Assistant General Counsel  

One Johnson & Johnson   Plaza  

New Brunswick, NJ 08933 
    	
 
    	
—
    	
 
    	
—
    	
 
    	
66,964,285
    	
 
    	
5,923,871
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bay City Capital Fund IV, L.P.  
    Attention: Carl Goldfischer 
   750 Battery Street 
   Suite 400 
   San Francisco, CA 94111 
    	
 
    	
562,868
    	
 
    	
30,548,195
    	
 
    	
16,387,835
    	
 
    	
4,591,539
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bay   City Capital Fund IV Co-Investment Fund, L.P.  

Attention: Carl Goldfischer 
   750 Battery Street 
   Suite 400 
   San Francisco, CA 94111 
    	
 
    	
12,132
    	
 
    	
658,461
    	
 
    	
353,236
    	
 
    	
98,970
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Three Arch Partners IV, L.P.  
    Attention: Bill Harrington 
   3200 Alpine Road 
   Portola Valley, CA 94028 
    	
 
    	
97,840
    	
 
    	
30,532,495
    	
 
    	
16,379,412
    	
 
    	
4,897,841
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Three Arch Associates IV, L.P.  
    Attention: Bill Harrington 
   3200 Alpine Road 
   Portola Valley, CA 94028 
    	
 
    	
2,160
    	
 
    	
674,161
    	
 
    	
361,659
    	
 
    	
108,145
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mayo   Foundation for Medical Education and Research  

Attn: Jeffrey Torborg  
    200 1st Street SW 
   Rochester, MN 55905 
    	
 
    	
1,000,000
    	
 
    	
2,747,252
    	
 
    	
—
    	
 
    	
—
    	
 
    

 

 

	
Name/Address:
    	
 
    	
No. of Shares
   of
   Common
   Stock
    	
 
    	
No. of Shares of
   Series A
   Preferred Stock
    	
 
    	
No. of Shares of
   Series B
   Preferred Stock
    	
 
    	
No. of Shares of
   Series C
   Preferred Stock
    	
 
    
	
Mayo Clinic  
    Attn: Jeffrey Torborg  
    200 1st Street SW  
    Rochester, MN 55905 
    	
 
    	
—
    	
 
    	
2,747,252
    	
 
    	
1,116,071
    	
 
    	
621,875
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MPM   BioVentures IV GmBH & Co. Beteiligungs KG  

c/o MPM Capital 
   The John Hancock Tower 
   200 Clarendon Street, 54th Floor 
   Boston, MA 02116 
    	
 
    	
—
    	
 
    	
346,711
    	
 
    	
185,995
    	
 
    	
62,389
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MPM BioVentures IV-QP, L.P.  
    c/o MPM Capital 
   The John Hancock Tower 
   200 Clarendon Street, 54th Floor 
   Boston, MA 02116 
    	
 
    	
—
    	
 
    	
8,999,431
    	
 
    	
4,827,821
    	
 
    	
1,619,423
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MPM Asset Management Investors   BV4 LLC  
    c/o MPM Capital 
   The John Hancock Tower 
   200 Clarendon Street, 54th Floor 
   Boston, MA 02116 
    	
 
    	
—
    	
 
    	
255,904
    	
 
    	
137,282
    	
 
    	
46,049
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Konstantinos   Alataris  
    411 Acacia Avenue  
    Palo Alto, CA 94306  
    	
 
    	
12,151,745
    	
*
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Michael Masterson  
    750 Battery Street 
   Suite 400 
   San Francisco, CA 94111 
    	
 
    	
70,939
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Aberdare Ventures III, L.P.  
    Attention: Paul Klingenstein 
   Aberdare Ventures 
   One Embarcadero Center 
   Suite 4000 
   San Francisco, CA 94111 
    	
 
    	
—
    	
 
    	
26,972,070
    	
 
    	
10,904,468
    	
 
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Aberdare Partners III, L.P.  
    Attention: Paul Klingenstein 
   Aberdare Ventures 
   One Embarcadero Center 
   Suite 4000 
   San Francisco, CA 94111 
    	
 
    	
—
    	
 
    	
633,817
    	
 
    	
256,246
    	
 
    	
—
    	
 
    

 

 

	
Name/Address:
    	
 
    	
No. of Shares
   of
   Common
   Stock
    	
 
    	
No. of Shares of
   Series A
   Preferred Stock
    	
 
    	
No. of Shares of
   Series B
   Preferred Stock
    	
 
    	
No. of Shares of
   Series C
   Preferred Stock
    	
 
    
	
AMV Partners II, L.P.  
    Attention: John Deedrick 
   Accuitive Medical Ventures 
   3652 Hermann Court NE 
   Rochester, MN 55906 
    	
 
    	
—
    	
 
    	
24,005,120
    	
 
    	
12,877,747
    	
 
    	
3,565,327
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mark B. Knudson  
    c/o EnteroMedics 
   2800 Patton Road  
    St. Paul, MN 55113 
    	
 
    	
—
    	
 
    	
206,043
    	
 
    	
—
    	
 
    	
17,029
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mark B. Knudson Revocable Trust  
    Mark B. Knudson, Trustee 
   Dorsey & Whitney Trust 
   Company, LLC, Trustee 
   c/o EnteroMedics 
   2800 Patton Road 
   St. Paul, MN 55113
    	
 
    	
400,000
    	
 
    	
139,389
    	
 
    	
—
    	
 
    	
11,520
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Susan J. Knudson Revocable   Trust  
    Susan J. Knudson, -Trustee
   Dorsey & Whitney Trust 
   Company, LLC, Trustee 
   c/o EnteroMedics
   2800 Patton Road 
   St. Paul, MN 55113
    	
 
    	
—
    	
 
    	
138,325
    	
 
    	
—
    	
 
    	
11,433
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sarah Brenzel Conrad  
    12557 Riverview Road 
   Eden Prairie, MN 55347
    	
 
    	
290,000
    	
 
    	
144,972
    	
 
    	
61,988
    	
 
    	
17,105
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Adrianus P. Donders  
    15089 Crane Street 
   Andover, MN 55304
    	
 
    	
250,000
    	
 
    	
139,389
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Robert S. Nickoloff 
    	
 
    	
100,000
    	
 
    	
69,644
    	
 
    	
—
    	
 
    	
5,756
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
James R. Thacker and Kate Ward   Thacker  
    4529 Thunder Ridge 
   Eureka, MO 63025 
    	
 
    	
141,872
    	
 
    	
549,450
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Michael   DeMane  
    c/o Nevro Corp.  
    4040 Campbell Avenue #210 
   Menlo Park, California 94025 
    	
 
    	
13,403,954
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    

 

 

	
Name/Address:
    	
 
    	
No. of Shares
   of
   Common
   Stock
    	
 
    	
No. of Shares of
   Series A
   Preferred Stock
    	
 
    	
No. of Shares of
   Series B
   Preferred Stock
    	
 
    	
No. of Shares of
   Series C
   Preferred Stock
    	
 
    
	
Andrew   Galligan  
    c/o Nevro Corp.  
    4040 Campbell Avenue #210 
   Menlo Park, California 94025 
    	
 
    	
3,639,843
    	
**
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Andre Walker  
    c/o Nevro Corp.  
    4040 Campbell Avenue #210 
   Menlo Park, California 94025 
    	
 
    	
4,136,186
    	
**
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    

 

	
  *
    	
Includes   options to purchase 10,926,742 shares of Common Stock
    
	
 
    	
 
    
	
**
    	
Options   to purchase Common Stock
    

 

 

SCHEDULE 2

 

SECTION 8 SELLERS

 

1.                                Mayo Foundation for Medical Education and Research

 

2.                                Konstantinos Alataris

 

3.                                Michael Masterson

 

4.                                Mark B. Knudson Revocable Trust

 

5.                                Susan J. Knudson Revocable Trust

 

6.                                Timothy R. Conrad

 

7.                                Sarah Brenzel Conrad

 

8.                                Adrianus P. Donders

 

9.                                Robert S. Nickoloff

 

10.                               Michael DeMane

 

11.                               Andrew Galligan

 

12.                               Andre Walker

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]