Document:

EXHIBIT
10.2

NEITHER THESE SECURITIES NOR THE
SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH
THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.  THESE SECURITIES AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES, SUBJECT TO THE TERMS
OF THIS LEGEND AND THE SECURITIES ACT.

SATCON TECHNOLOGY CORPORATION

WARRANT C

	
  Warrant C No. [   ]

  	
  Dated: July 17, 2007

  

 

SatCon Technology Corporation, a Delaware corporation
(the “Company”), hereby certifies
that, for value received, [Name of Holder] or its registered assigns (the “Holder”), is entitled to purchase from the
Company up to a total of [       ] shares of
common stock, $0.01 par value per share (the “Common
Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at an exercise price equal
to $1.815 per share (as adjusted from time to time as provided in Section 9,
the “Exercise Price”), at any time
and from time to time from and after the six month anniversary of date of
issuance hereof and through and including the date that is seven years from the
date of issuance hereof (the “Expiration Date”),
and subject to the following terms and conditions.  This Warrant (this “Warrant”) is one of a series of similar
warrants issued pursuant to that certain Securities Purchase Agreement, dated
as of July 19, 2006, by and among the Company and the Purchasers identified
therein (the “Purchase Agreement”).  All such warrants are referred to herein,
collectively, as the “Warrants.”

1.             Definitions.  In addition to the terms defined elsewhere in
this Warrant, capitalized terms that are not otherwise defined herein have the
meanings given to such terms in the Purchase Agreement.

2.             Registration of Warrant.  The Company shall register this Warrant, upon
records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the
record Holder hereof from time to time. 
The Company may deem and treat the registered Holder 

 

of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to
the contrary.

3.             Registration of Transfers.  The Company shall register the assignment and
transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant, with the Form of Assignment attached hereto on Annex B
duly completed and signed, to the Company at its address specified herein.  Upon any such registration or transfer, a new
warrant to purchase Common Stock, in substantially the form of this Warrant
(any such new warrant, a “New Warrant”),
evidencing the portion of this Warrant so transferred shall be issued to the
transferee and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring Holder.  The acceptance of the New Warrant by the
transferee thereof shall be deemed the acceptance by such transferee of all of
the rights and obligations of a holder of a Warrant.

4.             Exercise and Duration of
Warrants.

(a)           This
Warrant shall be exercisable by the registered Holder at any time and from time
to time on or after the six month anniversary of the date of issuance hereof to
and including the Expiration Date.  At
6:30 P.M., New York City time on the Expiration Date, the portion of this
Warrant not exercised prior thereto shall be and become void and of no value;
provided that, if the average of the Closing Prices for the five Trading Days
immediately prior to (but not including) the Expiration Date exceeds the
Exercise Price on the Expiration Date, then this Warrant shall be deemed to
have been exercised in full (to the extent not previously exercised) on a “cashless
exercise” basis at 6:30 P.M. New York City time on the Expiration Date if a “cashless
exercise” may occur at such time pursuant to Section 10 below.

(b)           A
Holder may exercise this Warrant by delivering to the Company (i) an exercise
notice, in the form attached hereto on Annex A (the “Exercise Notice”), appropriately completed and duly signed,
and (ii) payment of the Exercise Price for the number of Warrant Shares as
to which this Warrant is being exercised (which may take the form of a “cashless
exercise” if so indicated in the Exercise Notice and if a “cashless exercise”
may occur at such time pursuant to this Section 10 below), and the date such
items are delivered to the Company (as determined in accordance with the notice
provisions hereof) is an “Exercise Date.”  The Holder shall not be required to deliver
the original Warrant in order to effect an exercise hereunder.  Execution and delivery of the Exercise Notice
shall have the same effect as cancellation of the original Warrant and issuance
of a New Warrant evidencing the right to purchase the remaining number of
Warrant Shares.

5.             Delivery of Warrant Shares.

(a)           Upon
exercise of this Warrant, the Company shall promptly (but in no event later
than three Trading Days after the Exercise Date) issue or cause to be issued
and cause to be delivered to or upon the written order of the Holder and in
such name or names as the Holder may designate, a certificate for the Warrant
Shares issuable upon such exercise, free of restrictive legends unless a registration
statement covering the resale of the Warrant Shares and naming the Holder as a
selling stockholder thereunder is not then effective and the Warrant Shares are
not freely transferable without volume restrictions pursuant to Rule 144 under
the 

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Securities Act.  The Holder, or
any Person so designated by the Holder to receive Warrant Shares, shall be
deemed to have become holder of record of such Warrant Shares as of the
Exercise Date.  The Company shall, upon
request of the Holder, use its best efforts to deliver Warrant Shares hereunder
electronically through the Depository Trust Corporation or another established
clearing corporation performing similar functions.

(b)           This
Warrant is exercisable, either in its entirety or, from time to time, for a
portion of the number of Warrant Shares. 
Upon surrender of this Warrant following one or more partial exercises,
the Company shall issue or cause to be issued, at its expense, a New Warrant
evidencing the right to purchase the remaining number of Warrant Shares.

(c)           In
addition to any other rights available to a Holder, if the Company fails to
deliver to the Holder a certificate representing Warrant Shares by the third
Trading Day after exercise of this Warrant in full compliance with Section
4(b), and if after such third Trading Day the Holder purchases (in an open
market transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares that the Holder
anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three Trading Days
after the Holder’s request and in the Holder’s discretion, either (i) pay cash
to the Holder in an amount equal to the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so
purchased (the “Buy-In Price”), at which point
the Company’s obligation to deliver such certificate (and to issue such Common
Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the
Holder a certificate or certificates representing such Common Stock and pay
cash to the Holder in an amount equal to the excess (if any) of the Buy-In
Price over the product of (A) such number of shares of Common Stock, times (B)
the Closing Price on the date of the event giving rise to the Company’s
obligation to deliver such certificate.

(d)           The
Company’s obligations to issue and deliver Warrant Shares in accordance with
the terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same, any waiver or consent with respect
to any provision hereof, the recovery of any judgment against any Person or any
action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by the Holder or any other
Person of any obligation to the Company or any violation or alleged violation
of law by the Holder or any other Person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the
Holder in connection with the issuance of Warrant Shares.  Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or injunctive
relief with respect to the Company’s failure to timely deliver certificates
representing shares of Common Stock upon exercise of the Warrant  as required pursuant to the terms hereof.

6.             Charges, Taxes and Expenses.   Issuance and delivery of certificates for
shares of Common Stock upon exercise of this Warrant shall be made without
charge to the Holder for any issue or transfer tax, withholding tax, transfer
agent fee or other incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company;
provided, however, that the Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the registration of any
certificates for Warrant 

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Shares or Warrants in a
name other than that of the Holder or an Affiliate thereof.  The Holder shall be responsible for all other
tax liability that may arise as a result of holding or transferring this
Warrant or receiving Warrant Shares upon exercise hereof.

7.             Replacement of Warrant.  If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary
and reasonable indemnity, if requested.

8.             Reservation of Warrant Shares.  The Company covenants that it will at all
times reserve and keep available out of the aggregate of its authorized but
unissued and otherwise unreserved Common Stock, solely for the purpose of
enabling it to issue Warrant Shares upon exercise of this Warrant as herein
provided, the number of Warrant Shares which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive rights or any
other contingent purchase rights of persons other than the Holder (taking into
account the adjustments and restrictions of Section 9). The Company
covenants that all Warrant Shares so issuable and deliverable shall, upon
issuance and the payment of the applicable Exercise Price in accordance with
the terms hereof, be duly and validly authorized, issued and fully paid and
nonassessable.  The Company will take all
such action as may be necessary to assure that such shares of Common Stock may
be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of any securities exchange or automated
quotation system upon which the Common Stock may be listed.

9.             Certain Adjustments.  The Exercise Price and number of Warrant
Shares issuable upon exercise of this Warrant are subject to adjustment from
time to time as set forth in this Section 9.

(a)           Stock
Dividends and Splits.  If the
Company, at any time while this Warrant is outstanding, (i) pays a stock
dividend on its Common Stock or otherwise makes a distribution on any class of
capital stock that is payable in shares of Common Stock, (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, or (iii)
combines outstanding shares of Common Stock into a smaller number of shares,
then in each such case the Exercise Price shall be multiplied by a fraction of
which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number
of shares of Common Stock outstanding immediately after such event.  Any adjustment made pursuant to clause (i) of
this paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or
distribution, and any adjustment pursuant to clause (ii) or (iii) of this
paragraph shall become effective immediately after the effective date of such
subdivision or combination.

(b)           Pro
Rata Distributions.  If the Company,
at any time while this Warrant is outstanding, distributes to holders of Common
Stock (i) evidences of its indebtedness, (ii) any security (other than a
distribution of Common Stock covered by the preceding paragraph),
(iii) rights or warrants to subscribe for or purchase any security, or
(iv) any other asset (in each case, “Distributed
Property”), then in each such case the Exercise Price in effect
immediately prior to the record date fixed for determination of stockholders
entitled to receive such 

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distribution shall be adjusted (effective on such record date) to equal
the product of such Exercise Price times a fraction of which the denominator
shall be the average of the Closing Prices for the five Trading Days
immediately prior to (but not including) such record date and of which the
numerator shall be such average less the then fair market value of the
Distributed Property distributed in respect of 
one outstanding share of Common Stock, as determined by the Company’s
independent certified public accountants that regularly examine the financial
statements of the Company, (an “Appraiser”).  In such event, the Holder, after receipt of
the determination by the Appraiser, shall have the right to select an
additional appraiser (which shall be a nationally recognized accounting firm),
in which case such fair market value shall be deemed to equal the average of
the values determined by each of the Appraiser and such appraiser.  As an alternative to the foregoing adjustment
to the Exercise Price, at the request of the Holder delivered to the Company in
writing before the 45th day after such record date, the Company will deliver to
such Holder, within five Trading Days after such request (or, if later, on the
effective date of such distribution), the Distributed Property that such Holder
would have been entitled to receive in respect of the Warrant Shares for which
this Warrant could have been exercised immediately prior to such record
date.  If such Distributed Property is
not delivered to a Holder pursuant to the preceding sentence, then upon
expiration of or any exercise of the Warrant that occurs after such record
date, such Holder shall remain entitled to receive, in addition to the Warrant
Shares otherwise issuable upon such exercise (if applicable), such Distributed
Property.

(c)           Fundamental
Transactions.  If, at any time while
this Warrant is outstanding, (i) the Company effects any merger or
consolidation of the Company with or into another Person, (ii) the Company
effects any sale of all or substantially all of its assets in one or a series
of related transactions, (iii) any tender offer or exchange offer (whether by
the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities,
cash or property, or (iv) the Company effects any reclassification of the
Common Stock or any compulsory share exchange pursuant to which the Common Stock
is effectively converted into or exchanged for other securities, cash or
property (other than as a result of a subdivision or combination of shares of
Common Stock covered by Section 9(a) above) (in any such case, a “Fundamental Transaction”), then the Holder shall have the
right thereafter to receive, upon exercise of this Warrant, the same amount and
kind of securities, cash or property as it would have been entitled to receive
upon the occurrence of such Fundamental Transaction if it had been, immediately
prior to such Fundamental Transaction, the holder of the number of Warrant
Shares then issuable upon exercise in full of this Warrant (the “Alternate Consideration”). 
The aggregate Exercise Price for this Warrant will not be affected by
any such Fundamental Transaction, but the Company shall apportion such
aggregate Exercise Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the
Alternate Consideration.  If holders of
Common Stock are given any choice as to the securities, cash or property to be
received in a Fundamental Transaction, then the Holder shall be given the same
choice as to the Alternate Consideration it receives upon any exercise of this
Warrant following such Fundamental Transaction. 
In the event of a Fundamental Transaction, the Company or the successor
or purchasing Person, as the case may be, shall execute with the Holder a
written agreement providing that:

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(x)            this Warrant shall thereafter
entitle the Holder to purchase the Alternate Consideration in accordance with
this section 9(c),

(y)           in the case of any such successor or
purchasing Person, upon such consolidation, merger, statutory exchange,
combination, sale or conveyance such successor or purchasing Person shall be
jointly and severally liable with the Company for the performance of all of the
Company’s obligations under this Warrant and the Purchase Agreement, and

(z)            if registration or qualification is
required under the Exchange Act or applicable state law for the public resale
by the Holder of shares of stock and other securities so issuable upon exercise
of this Warrant, such registration or qualification shall be completed prior to
such reclassification, change, consolidation, merger, statutory exchange,
combination or sale.

If, in the
case of any Fundamental Transaction, the Alternate Consideration includes
shares of stock, other securities, other property or assets of a Person other
than the Company or any such successor or purchasing Person, as the case may
be, in such Fundamental Transaction, then such written agreement shall also be
executed by such other Person and shall contain such additional provisions to
protect the interests of the Holder as the Board of Directors of the Company
shall reasonably consider necessary by reason of the foregoing.  At the Holder’s request, any successor to the
Company or surviving entity in such Fundamental Transaction shall issue to the
Holder a new warrant consistent with the foregoing provisions and evidencing the
Holder’s right to purchase the Alternate Consideration for the aggregate
Exercise Price upon exercise thereof. 
The terms of any agreement pursuant to which a Fundamental Transaction
is effected shall include terms requiring any such successor or surviving
entity to comply with the provisions of this paragraph (c) and insuring that
the Warrant (or any such replacement security) will be similarly adjusted upon
any subsequent transaction analogous to a Fundamental Transaction. If any
Fundamental Transaction constitutes or results in a Change of Control, then at
the request of the Holder delivered to the Company in writing before the 45th
day after such Fundamental Transaction, the Company (or any such successor or
surviving entity) will purchase this Warrant from the Holder for a purchase
price, payable in cash within five Trading Days after such request (or, if
later, on the effective date of the Fundamental Transaction), equal to the
Black-Scholes value of the remaining unexercised portion of this Warrant on the
date of such request.

(d)           Subsequent
Equity Sales.

(i)            For so long as this Warrant is
outstanding, the Company or any Subsidiary shall not issue additional shares of
Common Stock or rights, warrants, options or other securities or debt
convertible, exercisable or exchangeable for shares of Common Stock or
otherwise entitling any Person to acquire shares of Common Stock (collectively,
“Common Stock Equivalents”)
at an effective price per share of Common Stock (prior to deducting fees,
commissions and other expenses related to such issuance) (the “Effective Price”) less than the Conversion Price (as defined
in the Notes) (as adjusted to such date) (a “Prohibited
Issuance”).  For purposes of
this paragraph, in connection with any issuance of any Common Stock
Equivalents, (A) the maximum number of shares of Common Stock potentially
issuable at any time upon conversion, exercise or exchange of 

 6
 

 

such Common
Stock Equivalents (the “Deemed
Number”) shall be deemed to be outstanding upon issuance of such Common
Stock Equivalents, (B) the Effective Price applicable to such Common Stock
shall equal the minimum dollar value of consideration payable to the Company to
purchase such Common Stock Equivalents and to convert, exercise or exchange
them into Common Stock (prior to deducting any fees, commissions and other
expenses related thereto), divided by the Deemed Number, and (C) the actual
issuance of Common Stock upon conversion, exercise or exchange of such Common
Stock Equivalents shall not be subject again to this Section 9(d)(i).

(ii)           If, at any time while this Warrant is
outstanding, the Company or any Subsidiary issues Common Stock Equivalents with
an Effective Price or a number of underlying shares that floats or resets or
otherwise varies or is subject to adjustment based (directly or indirectly) on
market prices of the Common Stock (a “Floating
Price Security”), then for purposes of applying the preceding
paragraph, whether Section 9(d)(i) has been violated will be determined
separately each time such adjustment occurs.

(iii)          In the event the Company breaches Section
9(d)(i), then at the request of the Holder delivered to the Company in
writing before the 45th day after such Prohibited Issuance, the Company (or any
such successor or surviving entity) will purchase this Warrant from the Holder
for a purchase price, payable in cash within five Trading Days after such
request, equal to the Black-Scholes value of the remaining unexercised portion
of this Warrant on the date of such request.

(iv)          Notwithstanding the foregoing, the
Company shall be permitted to issue Excluded Stock.

(e)           Number
of Warrant Shares.  Simultaneously
with any adjustment to the Exercise Price pursuant to paragraphs (a) or (b) of
this Section, the number of Warrant Shares that may be purchased upon exercise
of this Warrant shall be increased or decreased proportionately, so that after
such adjustment the aggregate Exercise Price payable hereunder for the
increased or decreased number of Warrant Shares shall be the same as the
aggregate Exercise Price in effect immediately prior to such adjustment.

(f)            Calculations.  All calculations under this Section 9
shall be made to the nearest cent or the nearest 1/100th of a share, as
applicable.  The number of shares of
Common Stock outstanding at any given time shall not include shares owned or
held by or for the account of the Company, and the disposition of any such
shares shall be considered an issue or sale of Common Stock.

(g)           Notice
of Adjustments.  Upon the occurrence
of each adjustment pursuant to this Section 9, the Company at its
expense will promptly compute such adjustment in accordance with the terms of
this Warrant and prepare a certificate setting forth such adjustment, including
a statement of the adjusted Exercise Price and adjusted number or type of
Warrant Shares or other securities issuable upon exercise of this Warrant (as
applicable), describing the transactions giving rise to such adjustments and
showing in detail the facts upon which such adjustment is based.  The Company will promptly deliver a copy of
each such certificate to the Holder within 10 Trading Days of the occurrence of
such adjustment.

 7

 

(h)           Notice
of Corporate Events.  If the
Company  (i) declares a dividend or any
other distribution of cash, securities or other property in respect of its
Common Stock, including without limitation any granting of rights or warrants
to subscribe for or purchase any capital stock of the Company or any
Subsidiary, (ii) authorizes or approves, enters into any agreement
contemplating or solicits stockholder approval for any Fundamental Transaction
or (iii) authorizes the voluntary dissolution, liquidation or winding up of the
affairs of the Company, then the Company shall deliver to the Holder a notice
describing the material terms and conditions of such transaction, at least 20
calendar days prior to the applicable record or effective date on which a
Person would need to hold Common Stock in order to participate in or vote with
respect to such transaction, and the Company will take all steps reasonably
necessary in order to insure that the Holder is given the practical opportunity
to exercise this Warrant prior to such time so as to participate in or vote
with respect to such transaction; provided, however, that the failure to
deliver such notice or any defect therein shall not affect the validity of the
corporate action required to be described in such notice.

10.           Payment of Exercise Price.  The Holder shall pay the Exercise Price in
cash in immediately available funds; provided, however, that if a
Registration Statement covering the resale of the Warrant Shares is not
effective at the time of exercise, the Holder may satisfy its obligation to pay
the Exercise Price through a “cashless exercise,” in which event the Company
shall issue to the Holder the number of Warrant Shares determined as follows:

	
  

  	
  X = Y [(A-B)/A]

  
	
  where:

  	
   

  
	
   

  	
  X = the number of Warrant Shares to be issued to the
  Holder.

  
	
   

  	
   

  
	
   

  	
  Y = the number of Warrant Shares with respect to
  which this Warrant is being exercised.

  
	
   

  	
   

  
	
   

  	
  A = the arithmetic average of the VWAP for the five
  Trading Days immediately prior to (but not including) the Exercise Date.

  
	
   

  	
   

  
	
   

  	
  B = the Exercise Price.

  

 

For purposes of
Rule 144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for
the Warrant Shares shall be deemed to have commenced, on the date this Warrant
was originally issued pursuant to the Purchase Agreement.

11.           Limitation
on Exercise.

(a)           Notwithstanding anything to the contrary contained herein,
the number of shares of Common Stock that may
be acquired by the Holder upon any exercise of this Warrant (or otherwise in
respect hereof) shall be limited to the extent necessary to insure that,
following such exercise (or other issuance), the total number of shares of
Common Stock then beneficially owned by such Holder and its Affiliates and any
other Persons whose beneficial ownership of 

 8
 

 

Common Stock would be aggregated
with the Holder’s for purposes of Section 13(d) of the Exchange Act, does not
exceed 4.999%  (the “Threshold Percentage”) or 9.999% (the “Maximum Percentage”) of the
total number of issued and outstanding shares of Common Stock (including for
such purpose the shares of Common Stock issuable upon such exercise).  For such purposes, beneficial ownership shall
be determined in accordance with Section 13(d) of the Exchange Act and the
rules and regulations promulgated thereunder. 
Each delivery of an Exercise Notice hereunder will constitute a
representation by the Holder that it has evaluated the limitations set forth in
this paragraph and determined that issuance of the full number of Warrant
Shares requested in such Exercise Notice is permitted under this
paragraph.  The Company’s obligation to
issue shares of Common Stock in excess of the limitation referred to in this
Section shall be suspended (and shall not terminate or expire notwithstanding
any contrary provisions hereof) until such time, if any, as such shares of
Common Stock may be issued in compliance with such limitation.  By written notice to the Company, the Holder
shall have the right (x) at any time and from time to time to reduce its
Maximum Percentage immediately upon notice to the Company in the event and only
to the extent that Section 16 of the Exchange Act or the rules promulgated
thereunder (or any successor statute or rules) is changed to reduce the
beneficial ownership percentage threshold thereunder to a percentage less than
9.999% and (y) at any time and from time to time, to waive the provisions of
this Section insofar as they relate to the Threshold Percentage or to increase
or decrease its Threshold Percentage (but not in excess of the Maximum
Percentage) unless the Holder shall have, by written instrument delivered to
the Company, irrevocably waived its rights to so increase or decrease its
Threshold Percentage, but (i) any such waiver, increase or decrease will not be
effective until the 61st day after such notice is delivered to the Company, and
(ii) any such waiver or increase or decrease will apply only to the Holder and
not to any other holder of Warrants.

(b)           Notwithstanding
anything to the contrary contained herein, the
number of shares of Common Stock that may be acquired by the Holder upon any
exercise of this Warrant (or otherwise in respect hereof) shall be limited to
the extent necessary to insure that, following such exercise (or other
issuance), the total number of shares of Common Stock then beneficially owned
by such Holder and its Affiliates and any other Persons whose beneficial ownership
of Common Stock would be aggregated with the Holder’s for purposes of Section
13(d) of the Exchange Act, does not exceed 19.999% of the total number of
issued and outstanding shares of Common Stock (including for such purpose the
shares of Common Stock issuable upon such exercise).  For such purposes, beneficial ownership shall
be determined in accordance with Section 13(d) of the Exchange Act and the
rules and regulations promulgated thereunder.

12.           Fractional Shares.  The Company shall not be required to issue or
cause to be issued fractional Warrant Shares on the exercise of this
Warrant.  If any fraction of a Warrant
Share would, except for the provisions of this Section, be issuable upon
exercise of this Warrant, the number of Warrant Shares to be issued will be
rounded up to the nearest whole share or right to purchase the nearest whole share, as the case may be.

13.           Notices.  Any and all notices or other communications
or deliveries hereunder (including without limitation any Exercise Notice)
shall be in writing and shall be deemed given and effective on the earliest of
(i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 6:30 p.m.
(New 

 9
 

 

York City time) on a Trading Day, (ii) the next
Trading Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in this Section on a
day that is not a Trading Day or later than 6:30 p.m. (New York City time) on
any Trading Day, (iii) the Trading Day following the date of mailing, if sent
by a nationally recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is required to be given.  The address for such notices or
communications shall be as set forth in the Purchase Agreement.

14.           Call
Right.

(a)           If
following the later of the (i) Effective Date and (ii) the six month
anniversary of the date hereof, the Closing Prices for any 20 consecutive
Trading Days exceeds 200% of the Exercise Price (the “Threshold I Price”, and such 20 day period,
the “Threshold I Period”), then
the Company will have the right, but not obligation (the “Call I Right”), on prior written notice in
accordance with Section 14(c) below to require the Holder to exercise up to 50%
of any unexercised portion of this Warrant for which an Exercise Notice has not
yet been delivered (the “Call I Amount”);
provided that the Call I Right must be exercised within 20 Trading Days of the
last day of the Threshold I Period.

(b)           If
following the 24 month anniversary of the date hereof, the Closing Prices for
any 20 consecutive Trading Days exceeds 300% of the Exercise Price (the “Threshold II Price”, and together with the
Threshold I Price, each a “Threshold Price”
and such 20 day period, the “Threshold II
Period”), then the Company will have the right, but not obligation
(the “Call II Right”, and together
with the Call I Right, each a “Call Right”),
on prior written notice in accordance with Section 14(c) below to require the
Holder to exercise any unexercised portion of this Warrant for which an
Exercise Notice has not yet been delivered (the “Call II Amount”, and together with the Call I Amount, each a “Call Amount”); provided that the Call II
Right must be exercised within 20 Trading Days of the last day of the Threshold
II Period.

(c)           To
exercise a Call Right, the Company shall deliver to the Holder an irrevocable
written notice (a “Call Notice”),
indicating the applicable Call Amount. 
The date that the Company delivers the Call Notice to the Holders will
be referred to as the “Call Date.”
Within 15 Trading Days of receipt of the Call Notice, the Holder shall exercise
this Warrant for up to the applicable Call Amount in accordance with Section
4(b) above.  Any portion of the Call
Amount that is not exercised by 6:30 p.m. (New York City time) on the 15th
Trading Day following the date of receipt of the Call Notice (the “Forced Exercise Date”) shall be cancelled.  Any unexercised portion of this Warrant to
which the Call Notice does not pertain (the “Remaining
Portion”) will be unaffected by such Call Notice.  The Company covenants and agrees that it will
honor any Exercise Notice with respect to the Call Amount that are tendered
from the Call Date through and including 6:30 p.m. (New York City time) on the
Forced Exercise Date.

(d)           Notwithstanding
anything to the contrary set forth in this Warrant, the Company may not require
the cancellation of any unexercised Call Amount (and any Call Notice will be
void), unless from the beginning of the 20 consecutive Trading Days used to
determine whether the Common Stock has achieved the applicable Threshold Price
through the Forced 

 10
 

 

Exercise Date (the “Call Period”)
(i) the Closing Prices for each Trading Day during such Call Period exceeds
such Threshold Price, (ii) the Company shall have honored in accordance with
the terms of this Warrant any Exercise Notice delivered by 6:30 p.m. (New York
City time) on the Forced Exercise Date, (iii) the Equity Conditions (as defined
in the Notes) are satisfied (or waived in writing by the applicable Holder) on
each Trading Day with respect to all Underlying Shares issuable upon exercise
of the Call Amount, and (iv) the average daily trading volume as reported on
Bloomberg, L.P. during such Call Period (determined by calculating the
arithmetic average of the daily trading volume for each Trading Day in such
Call Period) is greater than 100,000 shares.

(e)           Notwithstanding
anything herein to the contrary, (i) in connection with the Company’s exercise
of a Call Right, the Threshold Percentage limitation on exercise set forth in
Section 11 shall not apply and (ii) if after the Call Right is exercised, the
stated Expiration Date of this Warrant would occur prior to the Forced Exercise
Date, the “Expiration Date” hereof shall be extended to end of the Forced
Exercise Date solely to the extent necessary to enable this Warrant to be
exercised for the Call Amount on the Forced Exercise Date.

15.           Warrant Agent.  The Company shall serve as warrant agent
under this Warrant.  Upon 30 days’ notice
to the Holder, the Company may appoint a new warrant agent.  Any corporation into which the Company or any
new warrant agent may be merged or any corporation resulting from any
consolidation to which the Company or any new warrant agent shall be a party or
any corporation to which the Company or any new warrant agent transfers
substantially all of its corporate trust or stockholders services business
shall be a successor warrant agent under this Warrant without any further
act.  Any such successor warrant agent
shall promptly cause notice of its succession as warrant agent to be mailed (by
first class mail, postage prepaid) to the Holder at the Holder’s last address
as shown on the Warrant Register.

16.           Miscellaneous.

(a)           Subject
to the restrictions on transfer set forth on the first page hereof, this
Warrant may be assigned by the Holder. 
This Warrant may not be assigned by the Company except to a successor in
the event of a Fundamental Transaction. 
This Warrant shall be binding on and inure to the benefit of the parties
hereto and their respective successors and assigns.  Subject to the preceding sentence, nothing in
this Warrant shall be construed to give to any Person other than the Company
and the Holder any legal or equitable right, remedy or cause of action under
this Warrant.  This Warrant may be
amended only in writing signed by the Company and the Holder and their
successors and assigns.

(b)           The
Company will not, by amendment of its governing documents or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder against impairment.  Without limiting the generality of the
foregoing, the Company (i) will not increase the par value of any Warrant
Shares above the amount payable therefor on such exercise, (ii) will take all
such action as may be reasonably necessary or appropriate in order that the
Company may validly and legally issue fully paid and 

 11
 

 

nonassessable Warrant Shares on the exercise of this Warrant, and (iii)
will not close its stockholder books or records in any manner which interferes
with the timely exercise of this Warrant.

(C)           GOVERNING
LAW; VENUE; WAIVER OF JURY TRIAL. 
ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE
EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF
NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR
DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE
TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT
IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT
TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS
IMPROPER.  EACH PARTY HEREBY IRREVOCABLY
WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY
SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR
CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY
AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT
SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE
THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT
TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.  THE COMPANY HEREBY WAIVES ALL RIGHTS TO A
TRIAL BY JURY.

(d)           The
headings herein are for convenience only, do not constitute a part of this
Warrant and shall not be deemed to limit or affect any of the provisions
hereof.

(e)           In
case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Warrant shall not in any way be affected or
impaired thereby and the parties will attempt in good faith to agree upon a
valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

 12
 

 

IN WITNESS WHEREOF, the
Company has caused this Warrant C to be duly executed by its authorized officer
as of the date first indicated above.

	
  

  	
  SATCON TECHNOLOGY CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  David B. Eisenhaure

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
				

 

 13

 

Annex A

FORM OF EXERCISE NOTICE

(To be executed by the Holder to exercise the right to
purchase shares of Common Stock under the foregoing Warrant)

To:  SATCON
TECHNOLOGY CORPORATION

The undersigned is the Holder of Warrant C No.        
(the “Warrant”) issued by SatCon
Technology Corporation, a Delaware corporation (the “Company”).  Capitalized
terms used herein and not otherwise defined have the respective meanings set
forth in the Warrant.

1.                                       The
Warrant is currently exercisable to purchase a total of               
Warrant Shares.

2.                                       The
undersigned Holder hereby exercises its right to purchase                  
Warrant Shares pursuant to the Warrant.

3.                                       The
Holder intends that payment of the Exercise Price shall be made as (check one):

o            “Cash Exercise” under Section 10

o            “Cashless Exercise” under Section 10
(if permitted)

4.                                       If
the holder has elected a Cash Exercise, the holder shall pay the sum of $            
to the Company in accordance with the terms of the Warrant.

5.                                       Pursuant
to this exercise, the Company shall deliver to the holder                
Warrant Shares in accordance with the terms of the Warrant.

6.                                       Following
this exercise, the Warrant shall be exercisable to purchase a total of               
Warrant Shares.

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
  Name of Holder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must conform in all respects to name of
  holder as specified on the face of the Warrant)

  
										

 

 

Annex B 

FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of
Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto                                 
the right represented by the within Warrant to purchase              
shares of Common Stock of SatCon Technology Corporation to which the within
Warrant relates and appoints                 
attorney to transfer said right on the books of SatCon Technology Corporation
with full power of substitution in the premises.

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature must conform in all respects to name of
  holder as specified on the face of the Warrant)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address of Transferee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  In the presence of:EXHIBIT 10.1

CONCEPTUS, INC.

UECKER EQUITY PLAN

STOCK APPRECIATION RIGHT
AGREEMENT

Grant Notice

Conceptus, Inc. (the “Company”) hereby grants you,
Darrin Uecker (the “Employee”), a Stock Appreciation Right (a “SAR”) under the Company’s Darrin Uecker
Stock Appreciation Right Agreement (the “Plan”), the terms of which are hereby
incorporated by reference. The effective date of this Stock Appreciation Right
Agreement, which includes the “Darrin Uecker Stock
Appreciation Right Agreement” attached hereto and incorporated herein (the “Agreement”),
is May 10, 2007 (the “Grant Date”). Subject to the remaining terms of this Agreement and of the Plan, the principal features
of this award are as follows:

Number of Shares subject to
the SAR:  125,000

Exercise
Price per Share: $ 18.41

Vesting
Commencement Date: May 02, 2007

Vesting
of the SAR:   The SAR will vest according
to the Agreement attached hereto.

Your signature below indicates your agreement and
understanding that this SAR is subject to all of the terms and conditions
contained in the Agreement.

	
  CONCEPTUS, INC.

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Gregory Lichtwardt

  	
   

  	
   

  
	
  Gregory Lichtwardt

  	
  /s/ Darrin Uecker

  	
   

  
	
  Executive Vice President

  	
  Darrin Uecker

  
				

 

CONCEPTUS,
INC.

DARRIN UECKER STOCK APPRECIATION RIGHT AGREEMENT

This DARRIN UECKER STOCK
APPRECIATION RIGHT AGREEMENT (the “Agreement”) is entered into effective
as of May 10, 2007 (the “Effective Date”) between Conceptus, Inc. (the “Company”) and Darrin
Uecker (the “Participant”).

This stock appreciation right (“SAR”) has been granted without
stockholder approval as a stand-alone inducement grant pursuant to NASDAQ
Marketplace Rule 4350(i)(l)(A)(iv). Certain capitalized terms used herein shall
have the meanings given such terms in paragraph 16 of this Agreement.

1.                    Grant. In consideration of the Participant’s agreement to commence and
remain in the employ of the Company or its
Subsidiaries and for other good and valuable consideration, effective as of the Effective Date, the Company
irrevocably grants to the Participant a SAR for 125,000 shares of common stock
(the “Common Stock”), par value $0.003 per share (the “Shares”),
at an exercise price of $18.41 per share (the “Exercise Price per Share”).

2.                    Company’s Obligation to Pay. Each SAR has a value equal to the
difference between the Fair Market Value of
a Share and the Exercise Price per Share on the date the SAR is exercised. Unless and until the SAR will have
vested in the manner set forth in paragraph 3, the Participant will have no
right to payment of the SAR. Prior to actual payment of any vested SAR, such SAR will represent an unsecured
obligation of the Company, payable (if at all) only from the general
assets of the Company.

3.                    Vesting Schedule. Subject to paragraph
4, the SAR awarded by this Agreement will vest in the Participant as follows: as to one-eighth (l/8th) of
the Shares on the six-month anniversary of
May 2, 2007 (the “Vesting Commencement Date”), with the remainder of the
Shares subject thereto vesting
monthly over the following forty-two (42) months, such that the SAR shall be fully vested on the four-year
anniversary of the Vesting Commencement Date.

4.                    Exercise and Term.

(a)       The SAR may be exercised by the
Participant (or in the event of the Participant’s
death by the Participant’s estate) during its term only to the extent vested. Any portion of the SAR in which the Participant is
vested shall be exercisable until the earlier of the following (the “Expiration
Date”):

(i) Twelve (12) months following the date the Participant
ceases to be a Service Provider by reason of death or as a result of total and
permanent disability as defined
in Section 22(e)(3) of the Code;

(ii) Ninety (90) days following
the date the Participant ceases to be a Service Provider for any reason other
than death or as a result of total and permanent disability as defined in Section 22(e)(3) of
the Code; or

 1
 

(iii)
the tenth anniversary of the Effective Date.

(b)           Any exercisable portion
of the SAR may be exercised in whole or in part at any time prior to the time
when the SAR becomes unexercisable under paragraph 4(a).

(c)           Any vested SAR or
portion of a SAR not exercised prior to its Expiration Date will be forfeited and will terminate.

(d)           A vested SAR or portion
of a SAR may be exercised by completing a Stock Appreciation Right Exercise Notice in the
form attached hereto as Exhibit A and returning it to Gregory Lichtwardt prior to its Expiration Date. The
SAR may not be exercised more than once
with respect to any Share related thereto.

5.             Payment.

(a)           The Company shall settle
the exercise of all or any portion of the SAR in whole Shares within ten (10) days following such exercise.

(b)           To the extent
determined appropriate by the Company, any federal, state and local withholding
taxes with respect to such exercise will be paid by reducing the number of Shares actually paid to the Participant.

6.                    Rights as Stockholder. Neither the
Participant nor any person claiming under or through the Participant will have any of the
rights or privileges of a stockholder of the Company in respect of any
Shares deliverable upon exercise of the SAR unless and until certificates
representing such Shares will have been issued, recorded on the records of the
Company or its transfer agents
or registrars, and delivered to the Participant.

7.                    Address for Notices. Any notice to be given to the Company under
the terms of this Agreement will be
addressed to the Company at 331 East Evelyn Avenue, Mountain View, California
94041, Attn: Gregory Lichtwardt, or at such other address as the Company may
hereafter designate in writing. Any notices provided for in this Agreement or
the Plan shall be given in writing and
shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to the Participant, five
(5) days after deposit in the United States mail, postage prepaid, addressed to the Participant at
the address specified on the first page of this Agreement or at such other
address as the Participant may hereafter designate by written notice to
the Company.

8.                    Grant is Not Transferable. Except to the limited extent provided in
paragraph 4, this grant and the rights and
privileges conferred hereby, including without limitation the Shares issuable
upon exercise of the SAR, will not be transferred, assigned, pledged or
hypothecated in any way (whether by
operation of law or otherwise) and will not be subject to sale under execution,
attachment or similar process until, with respect to whole Shares issuable
following the exercise of the SAR, such Shares are issued pursuant to
paragraph 5 above. Upon any attempt to
transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or
any right or privilege conferred
hereby, or upon any attempted sale under any execution, attachment or similar
process, this grant and the rights and privileges conferred hereby immediately
will become null and void.

 2
 

9.                     Binding Agreement. Subject to the
limitation on the transferability of this grant contained herein, this
Agreement will be binding upon and inure to the benefit of the heirs, legatees,
legal representatives, successors and assigns of the parties hereto.

10.                  Additional Conditions to Issuance of Stock. If at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory authority
is necessary or desirable as a condition to the issuance of Shares to the Participant (or Participant’s
estate), such issuance will not occur unless and until such listing, registration, qualification, consent
or approval will have been effected or obtained free of any conditions not acceptable to the Company. The Company will make
all reasonable efforts to meet the requirements of any such state or federal
law or securities exchange and to obtain any such consent or approval of any
such governmental authority.

11.                  Captions. Captions provided
herein are for convenience only and are not to serve as a basis for interpretation or construction
of this Agreement.

12.                  Agreement Severable. In the event that any
provision in this Agreement will be held invalid or unenforceable, such
provision will be severable from, and such invalidity or unenforceability will
not be construed to have any effect on, the remaining provisions of this Agreement.

13.                  Material Inducement. The Participant agrees that the Participant
has not been previously employed in any
capacity by the Company or a Subsidiary, or if previously employed, has had a bona-fide period of non-employment, and
that the grant of this SAR is an inducement material to the Participant’s
agreement to enter into employment with the Company or Subsidiary.

14.                  Adjustments upon
Changes in Capitalization, Merger or Asset Sale.

(a)           In the event that the
Company determines that other than an Equity Restructuring any dividend or
other distribution (whether in the form of cash, Common Stock, other
securities, or other property), reclassification, reorganization, merger, consolidation, spin off,
combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other
disposition of all or substantially all of the assets of the Company, or
exchange of Common Stock or other securities of the Company, issuance of
warrants or other rights to purchase Common Stock or other securities of the
Company, or other similar
corporate transaction or event, in the Company’s sole discretion, affects the Common Stock such that an adjustment is
determined by the Company to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended by the Company to be
made available under this Agreement or with respect to the SAR, then the Company shall, in such manner as it may
deem equitable, adjust the number and kind
of shares of Common Stock (or other securities or property) subject to this Agreement.

(b)           In the event of any
transaction or event described in paragraph 14(a), the Company, in its sole
discretion, and on such terms and conditions as it deems

 3
 

appropriate,
and to the extent allowed by Section 409A of the Code and any applicable
regulations thereunder, to the extent applicable, either by the terms of the
Agreement or by action
taken prior to the occurrence of such transaction or event and either automatically or upon the Participant’s request,
is hereby authorized to take any one or more of the following actions whenever
the Company determines that such action is appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended by the
Company to be made available under this Agreement or to facilitate such
transaction or event:

(i)        To provide for either the purchase of
the SAR for an amount of cash equal to the
amount that could have been obtained upon the exercise of the SAR or realization
of the Participant’s rights had the SAR been currently exercisable or payable or fully vested or the replacement of the SAR with
other rights or property selected by the Company in its sole discretion;

(ii)       To
provide that the SAR shall be exercisable as to all shares covered thereby,
notwithstanding anything to the contrary in this Agreement;

(iii)      To
provide that the SAR be assumed by the successor or survivor corporation, or a parent or subsidiary
thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or
survivor corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices;

(iv)      To make
adjustments in the number and type of shares of Common Stock (or other
securities or property) subject to outstanding SAR, and/or in the terms and
conditions of (including the grant or exercise price), and the criteria included
in, outstanding SAR; or

(v)       To provide that immediately upon the
consummation of such event, the SAR shall
not be exercisable and shall terminate; provided, that for a specified period of time prior to such event, the SAR shall
be exercisable as to all Shares covered thereby, and the restrictions imposed under this Agreement upon some or
all Shares may be terminated,
notwithstanding anything to the contrary in this Agreement.

(c)           In connection with the occurrence of any Equity
Restructuring, and notwithstanding
anything to the contrary in paragraphs 14(a) and 14(b):

(i)        The
number and type of securities subject to the outstanding SAR and the exercise price
or grant price thereof, if applicable, will be proportionately adjusted. The adjustments provided under this
paragraph 14(c)(i) shall be nondiscretionary
and shall be final and binding on the affected the Participant and the Company.

(ii)     
Notwithstanding anything in this paragraph 14 to the contrary, this paragraph 14(c) shall
not apply to, and instead paragraph 14(a) shall apply to the SAR to the extent the
application of this paragraph 14(c) would result in a penalty tax under Section 409 A of the
Code and the proposed and final regulations and guidance issued by the Secretary of the Treasury thereunder.

(d)           If the Company undergoes an Acquisition, then any surviving corporation or
entity or acquiring corporation or entity, or affiliate of such corporation or
entity, may

 4
 

assume
the SAR or may substitute similar stock awards (including an award to acquire
the same consideration paid to the stockholders in the transaction described in
this paragraph 15(d)) for
those outstanding under the Plan. In the event any surviving corporation or
entity or acquiring corporation or entity in an Acquisition, or affiliate of such corporation or entity, does not assume the
SAR or does not substitute similar stock awards for the SAR, then if the
Participant’s status as a Service Provider has not terminated prior to such event, the vesting of the SAR (and the time
during which the SAR may be exercised) shall be accelerated and made fully
exercisable and all restrictions
thereon shall lapse at least ten (10) days prior to the closing of the
Acquisition (and the SAR terminated
if not exercised prior to the closing of such Acquisition).

(f)       The
existence of this Agreement shall not affect or restrict in any way the right or power of the
Company or the stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company’s capital structure or its
business, any merger or consolidation of the Company, any issue of stock or of options, warrants
or rights to purchase stock or of bonds, debentures, preferred or prior
preference stocks whose rights are superior to or affect the Common Stock or
the rights thereof or which are convertible into or exchangeable for Common
Stock, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise.

15.                 Amendment. The provisions of
this Agreement may be amended or waived only by written agreement between the
Company and the Participant, and no course of conduct or failure or delay in
enforcing the provisions of this Agreement will affect the validity, binding effect or enforceability of this Agreement.
Notwithstanding the foregoing, the Company may amend, terminate or revoke this Agreement in any respect to the extent
determined necessary or desirable by
the Company in its discretion to comply with the requirements of Section 409A
of the Internal Revenue Code of 1986, as amended. Participant expressly
understands and agrees that no additional
consent of Participant shall be required in connection with such amendment, termination
or revocation.

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

(a)           “ Acquisition”
means (i) any consolidation or merger of the Company with or into any other
corporation or other entity or person in which the stockholders of the Company
prior to such consolidation or merger own less than fifty percent (50%) of the
Company’s voting power immediately after such consolidation or merger, or (ii)
a sale of all or substantially all
of the assets of the Company.

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

(c)           “Code” means the
Internal Revenue Code of 1986, as amended, or any successor statute or statutes thereto.
Reference to any particular Code section shall include any successor section.

 5
 

(d)           “Consultant” means any consultant or
adviser if: (i) the consultant or adviser
renders bona fide services to the Company or any Parent or Subsidiary of the
Company; (ii) the services rendered by the consultant or adviser are not in
connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a
market for the Company’s securities; and (iii) the consultant or adviser is a natural person who has contracted directly
with the Company or any Parent or Subsidiary of the Company to render
such services.

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

(f)            “Employee” means
any person, including an Officer or Director, who is an employee (as defined in
accordance with Section 3401(c) of the Code) of the Company or any Parent or Subsidiary of the Company. A
Service Provider shall not cease to be an Employee
in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or
between the Company, its Parent, any Subsidiary, or any successor.
Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient, by
itself, to constitute “employment” by the Company.

(g)           “Equity Restructuring” shall mean a non-reciprocal transaction
between the Company and its stockholders, such as a stock dividend, stock
split, spin-off, rights offering or
recapitalization through a large, nonrecurring cash dividend, that affects shares
of Common Stock (or other securities of the Company) or the share price of Common Stock (or of other securities) and causes a
change in the per share value of the Common Stock underlying the SAR.

(h)       “Fair
Market Value” means, as of any date, the value of a share of Common Stock determined as follows:

(i)        If the
Common Stock is listed on any established stock exchange or a national market
system, including, without limitation, the Nasdaq Global Select Market, the
Nasdaq Global Market or the Nasdaq Capital Market, its Fair Market Value shall
be the closing sales price for a share of such stock (or the closing bid, if no
sales were
reported) as quoted on such exchange or system on the day of determination (or
the most
recent day on which sales were reported if none were reported on such date), as
reported in
The Wall Street Journal or such other source as the Company deems reliable;

(ii)       If the
Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for a share
of the Common Stock on the day of determination (or the most recent day on
which bid and asked prices were reported if none were reported on such date);
or

(iii)     In the
absence of an established market for the Common Stock, the Fair Market Value
thereof shall be determined in good faith by the Company.

(i)        “Parent”
means any corporation, whether now or hereafter existing (other than the
Company), in an unbroken chain of corporations ending with the Company if each
of

 6
 

the
corporations other than the last corporation in the unbroken chain owns stock
possessing more than fifty percent of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

(j)        “Service Provider” means an
Employee, Director or Consultant.

(k)       “Subsidiary” means any
corporation, whether now or hereafter existing (other than the Company), in an unbroken chain of corporations
beginning with the Company if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing more than fifty percent
of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

 7

EXHIBIT A

CONCEPTUS,
INC. 

STAND-ALONE STOCK APPRECIATION RIGHT EXERCISE NOTICE

Conceptus, Inc.

331 East Evelyn Avenue

Mountain
View, California 94041

Attention:                 

Effective as of today,                                     ,
the undersigned Participant hereby elects to exercise Participant’s vested Stock
Appreciation Right with respect to                              shares
of Common Stock pursuant to the Stand-Alone
Stock Appreciation Right Agreement dated May 10, 2007.

Participant
acknowledges that payment for the Stock Appreciation Right will be made in accordance with the terms set forth in the
Stand-Alone Stock Appreciation Right Agreement, less any legally
required withholdings.

	
  Submitted by:

  
	
   

  
	
  PARTICIPANT:

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  
	
  Address:

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