Document:

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EXHIBIT
10.3

GUARANTY AGREEMENT

     GUARANTY AGREEMENT (as amended, restated, supplemented or otherwise modified, this
“Guaranty”), dated as of December 15, 2006, is made by certain Domestic Subsidiaries of
JACK IN THE BOX INC., a Delaware corporation (such subsidiaries, collectively, the
“Guarantors”, each a “Guarantor”), in favor of WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent (in such capacity, the “Administrative Agent”) and the Secured
Parties.

STATEMENT OF PURPOSE

     Pursuant to the terms of the Credit Agreement dated as of December 15, 2006 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”)
among Jack in the Box Inc., a Delaware corporation, as borrower (the “Borrower”), the
financial institutions (the “Lenders”) from time to time party thereto and the
Administrative Agent, the Lenders have agreed to make Extensions of Credit to the Borrower upon the
terms and subject to the conditions set forth therein.

     The Borrower and the Guarantors, though separate legal entities, comprise one integrated
financial enterprise, and all Extensions of Credit to the Borrower will inure, directly or
indirectly, to the benefit of each of the Guarantors.

     It is a condition precedent to the obligation of the Lenders to make their respective
Extensions of Credit to the Borrower under the Credit Agreement that the Guarantors shall have
executed and delivered this Guaranty to the Administrative Agent and the Secured Parties.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, and to induce the Administrative Agent and the Lenders
to enter into the Credit Agreement and to induce the Lenders to make their respective Extensions of
Credit to the Borrower thereunder, the Guarantors hereby agree with the Administrative Agent and
the Secured Parties, as follows:

     SECTION 1. Definitions.

     (a) The following terms when used in this Guaranty shall have the meanings assigned to them
below:

     “Additional Guarantor” means each Domestic Subsidiary of the Borrower which hereafter
becomes a Guarantor pursuant to Section 26 hereof and Section 9.9 of the Credit Agreement.

     “Applicable Insolvency Laws” means all Applicable Law governing bankruptcy,
reorganization, arrangement, adjustment of debts, relief of debtors, dissolution, insolvency,
fraudulent transfers or conveyances or other similar laws (including, without limitation, 11 U.S.C.
Sections 547, 548 and 550 and other “avoidance” provisions of Title 11 of the United States Code).

 

 

     “Guaranteed Obligations” has the meaning set forth in Section 2(a) hereof.

     “Guaranty” means this Guaranty Agreement, as amended, restated, supplemented or
otherwise modified from time to time.

     “Permitted Liens” means those Liens permitted pursuant to Section 11.2 of the Credit
Agreement.

     (b) Unless otherwise indicated herein, capitalized terms used and not otherwise defined in
this Guaranty including the preambles and recitals hereof shall have the meanings ascribed to them
in the Credit Agreement. In the event of a conflict between capitalized terms defined herein and
in the Credit Agreement, the Credit Agreement shall control.

     (c) The words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import when
used in this Guaranty shall refer to this Guaranty as a whole and not to any particular provision
of this Guaranty, and Section references are to this Guaranty unless otherwise specified. The
meanings given to terms defined herein shall be equally applicable to both the singular and plural
forms of such terms. Where the context requires, terms relating to the Collateral or any part
thereof, when used in relation to a Guarantor, shall refer to such Guarantor’s Collateral or the
relevant part thereof.

     SECTION 2. Guaranty of Obligations of Guarantors.

     (a) Nature of Guaranty. Each Guarantor hereby, jointly and severally with the other
Guarantors, unconditionally guarantees to the Administrative Agent and the Secured Parties, and
their respective permitted successors, endorsees, transferees and assigns, the prompt payment and
performance of all Obligations of the Borrower, whether primary or secondary (whether by way of
endorsement or otherwise), whether now existing or hereafter arising, whether or not from time to
time reduced or extinguished (except by payment thereof) or hereafter increased or incurred,
whether enforceable or unenforceable as against the Borrower, whether or not discharged, stayed or
otherwise affected by any Applicable Insolvency Law or proceeding thereunder, whether created
directly with the Administrative Agent or any Secured Party or acquired by the Administrative Agent
or any Secured Party through assignment or endorsement, whether matured or unmatured, whether joint
or several, as and when the same become due and payable (whether at maturity or earlier, by reason
of acceleration, mandatory repayment or otherwise), in accordance with the terms of any such
instruments evidencing any such obligations, including all renewals, extensions or modifications
thereof (all Obligations of the Borrower, including all of the foregoing, being hereinafter
collectively referred to as the “Guaranteed Obligations”).

     (b) Bankruptcy Limitations on Guarantors. Notwithstanding anything to the contrary
contained in paragraph (a) above, it is the intention of each Guarantor and the Secured Parties
that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts,
relief of debtors, dissolution or insolvency or any similar proceeding with respect to any
Guarantor or its assets, the amount of such Guarantor’s obligations with respect to the

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Guaranteed Obligations shall be in, but not in excess of, the maximum amount thereof not
subject to avoidance or recovery by operation of Applicable Insolvency Laws after giving effect to
subsection (c) below. To that end, but only in the event and to the extent that after giving
effect to subsection (c) below, such Guarantor’s obligations with respect to the Guaranteed
Obligations or any payment made pursuant to the Guaranteed Obligations would, but for the operation
of the first sentence of this subsection (b), be subject to avoidance or recovery in any such
proceeding under Applicable Insolvency Laws after giving effect to subsection (c) below, the amount
of such Guarantor’s obligations with respect to the Guaranteed Obligations shall be limited to the
largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws,
render such Guarantor’s obligations with respect to such Guaranteed Obligations unenforceable or
avoidable or otherwise subject to recovery under Applicable Insolvency Laws. To the extent any
payment actually made pursuant to the Guaranteed Obligations exceeds the limitation of first
sentence of this subsection (b), and is otherwise subject to avoidance and recovery in any such
proceeding under Applicable Insolvency Laws, the amount subject to avoidance shall in all events be
limited to the amount by which such actual payment exceeds such limitation and the Guaranteed
Obligations as limited by the first sentence of this subsection (b) shall in all events remain in
full force and effect and be fully enforceable against such Guarantor. The first sentence of this
subsection (b) is intended solely to preserve the rights of the Administrative Agent and the
Secured Parties hereunder against such Guarantor in such proceeding to the maximum extent permitted
by Applicable Insolvency Laws and neither such Guarantor, the Borrower, any other Guarantor nor any
other Person shall have any right or claim under such sentence that would not otherwise be
available under Applicable Insolvency Laws in such proceeding.

     (c) Agreements for Contribution.

          (i) To the extent any Guarantor is required, by reason of its obligations hereunder, to pay to
any Secured Party an amount greater than the amount of value (as determined in accordance with
Applicable Insolvency Laws) actually made available to or for the benefit of such Guarantor on
account of the Credit Agreement, this Guaranty or any other Loan Document, such Guarantor shall
have an enforceable right of contribution against the Borrower and the remaining Guarantors, and
the Borrower and the remaining Guarantors shall be jointly and severally liable, for repayment of
the full amount of such excess payment. Subject only to the subordination provided in the
following clause (iv) below, such Guarantor further shall be subrogated to any and all rights of
the Secured Parties against the Borrower and the remaining Guarantors to the extent of such excess
payment.

          (ii) To the extent that any Guarantor would, but for the operation of this subsection (c) and
by reason of its obligations hereunder or its obligations to other Guarantors under this subsection
(c), be rendered insolvent for any purpose under Applicable Insolvency Laws, each of the Guarantors
hereby agrees to indemnify such Guarantor and commits to make a contribution to such Guarantor’s
capital in an amount at least equal to the amount necessary to prevent such Guarantor from having
been rendered insolvent by reason of the incurrence of any such obligations.

          (iii) To the extent that any Guarantor would, but for the operation of this subsection (c), be
rendered insolvent under any Applicable Insolvency Law by reason of its

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incurring of obligations to any other Guarantors under the foregoing clauses (i) and (ii) above,
such Guarantor shall, in turn, have rights of contribution and indemnity, to the full extent
provided in the foregoing clauses (i) and (ii) above, against the Borrower and the remaining
Guarantors, such that all obligations of all of the Guarantors hereunder and under this subsection
(c) shall be allocated in a manner such that no Guarantor shall be rendered insolvent for any
purpose under Applicable Insolvency Law by reason of its incurrence of such obligations.

          (iv) Notwithstanding any payment or payments by any of the Guarantors hereunder, or any
set-off or application of funds of any of the Guarantors by the Administrative Agent or any Secured
Party, or the receipt of any amounts by the Administrative Agent or any Secured Party with respect
to any of the Guaranteed Obligations, none of the Guarantors shall be entitled to be subrogated to
any of the rights of the Administrative Agent or any Secured Party against the Borrower or the
other Guarantors or any other guarantors or against any collateral security held by the
Administrative Agent or any Secured Party for the payment of the Guaranteed Obligations, nor shall
any of the Guarantors seek any reimbursement from the Borrower or any of the other Guarantors in
respect of payments made by such Guarantor in connection with the Guaranteed Obligations, until all
amounts owing to the Administrative Agent and the Secured Parties on account of the Guaranteed
Obligations (other than any contingent indemnification obligations) are paid in full and the
Commitments, are terminated. If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all of the Guaranteed Obligations shall not have been paid in
full, such amount shall be held by such Guarantor in trust for the Administrative Agent, segregated
from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned
over to the Administrative Agent in the exact form received by such Guarantor (duly endorsed by
such Guarantor to the Administrative Agent, if required) to be applied against the Guaranteed
Obligations, whether matured or unmatured, in such order as set forth in the Credit Agreement.

     SECTION 3. Nature of Guaranty.

     (a) Each Guarantor agrees that this Guaranty is a continuing, unconditional guaranty of
payment and performance and not of collection, and that its obligations under this Guaranty shall
be primary, absolute and unconditional, irrespective of, and unaffected by:

     (i) the genuineness, validity, regularity, enforceability or any future amendment of,
or change in, the Credit Agreement or any other Loan Document or any other agreement,
document or instrument to which the Borrower or any Subsidiary thereof is or may become a
party;

     (ii) the absence of any action to enforce this Guaranty, the Credit Agreement or any
other Loan Document or the waiver or consent by the Administrative Agent or any Secured
Party with respect to any of the provisions of this Guaranty, the Credit Agreement or any
other Loan Document;

     (iii) the existence, value or condition of, or failure to perfect its Lien against, any
security for or other guaranty of the Guaranteed Obligations or any action, or the absence
of any action, by the Administrative Agent or any Secured Party in respect of

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such security or guaranty (including, without limitation, the release of any such security
or guaranty); or

     (iv) any other action or circumstances which might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor;

it being agreed by each Guarantor that, subject to the first sentence in Section 2(b) hereof, its
obligations under this Guaranty shall not be discharged until the final indefeasible payment and
performance, in full, of the Guaranteed Obligations and the termination of the Commitments.

     (b) Each Guarantor represents, warrants and agrees that its obligations under this Guaranty
are not and shall not be subject to any counterclaims, offsets or defenses of any kind against the
Administrative Agent, the Secured Parties or the Borrower whether now existing or hereafter
arising.

     (c) Each Guarantor hereby agrees and acknowledges that the Guaranteed Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon this Guaranty, and all dealings between the Borrower
and any of the Guarantors, on the one hand, and the Administrative Agent and the Secured Parties,
on the other hand, likewise shall be conclusively presumed to have been had or consummated in
reliance upon this Guaranty.

     SECTION 4. Waivers. To the extent permitted by law, each Guarantor expressly waives
all of the following rights and defenses (and agrees not to take advantage of or assert any such
right or defense):

     (a) any rights it may now or in the future have under any statute, or at law or in equity, or
otherwise, to compel the Administrative Agent or any Secured Party to proceed in respect of the
Guaranteed Obligations against the Borrower or any other party or against any security for or other
guaranty of the payment and performance of the Guaranteed Obligations before proceeding against, or
as a condition to proceeding against, such Guarantor;

     (b) any defense based upon the failure of the Administrative Agent or any Secured Party to
commence an action in respect of the Guaranteed Obligations against the Borrower, such Guarantor,
any other guarantor or any other party or any security for the payment and performance of the
Guaranteed Obligations;

     (c) any right to insist upon, plead or in any manner whatever claim or take the benefit or
advantage of, any appraisal, valuation, stay, extension, marshalling of assets or redemption laws,
or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise
affect the performance by such Guarantor of its obligations under, or the enforcement by the
Administrative Agent or the Secured Parties of, this Guaranty;

     (d) any right of diligence, presentment, demand, protest and notice (except as specifically
required herein) of whatever kind or nature with respect to any of the Guaranteed

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Obligations and waives, to the extent permitted by Applicable Laws, the benefit of all
provisions of law which are or might be in conflict with the terms of this Guaranty and

     (e) any and all right to notice of the creation, renewal, extension, or accrual of any of the
Obligations and notice of or proof of reliance by the Administrative Agent or any Secured Party
upon, or acceptance of, this Guaranty.

Each Guarantor agrees that any notice or directive given at any time to the Administrative Agent or
any Secured Party which is inconsistent with any of the foregoing waivers shall be null and void
and may be ignored by the Administrative Agent or such Secured Party, and, in addition, may not be
pleaded or introduced as evidence in any litigation relating to this Guaranty for the reason that
such pleading or introduction would be at variance with the written terms of this Guaranty, unless
the Administrative Agent and the Required Lenders have specifically agreed otherwise in writing.
The foregoing waivers are of the essence of the transaction contemplated by the Credit Agreement
and the other Loan Documents and, but for this Guaranty and such waivers, the Administrative Agent
and Lenders would decline to enter into the Credit Agreement and the other Loan Documents.

     SECTION 5. Modification of Loan Documents, etc. Neither the Administrative Agent nor
any Secured Party shall incur any liability to any Guarantor as a result of any of the following,
and none of the following shall impair or release this Guaranty or any of the obligations of any
Guarantor under this Guaranty:

     (a) any change or extension of the manner, place or terms of payment of, or renewal or
alteration of all or any portion of, the Guaranteed Obligations;

     (b) any action under or in respect of the Credit Agreement or the other Loan Documents in the
exercise of any remedy, power or privilege contained therein or available to any of them at law, in
equity or otherwise, or waiver or forebearance from exercising any such remedies, powers or
privileges;

     (c) any amendment or modification, in any manner whatsoever, of the Credit Agreement or the
other Loan Documents;

     (d) any extension or waiver of the time for performance by any Guarantor, the Borrower or any
other Person of, or compliance with, any term, covenant or agreement on its part to be performed or
observed under the Credit Agreement or any other Loan Document, or waiver of such performance or
compliance or consent to a failure of, or departure from, such performance or compliance;

     (e) any taking and holding security or collateral for the payment of the Guaranteed
Obligations or any sale, exchange, release, disposal of, or other dealing with, any property
pledged, mortgaged or conveyed, or in which the Administrative Agent or any Secured Party have been
granted a Lien, to secure any Indebtedness of any Guarantor, the Borrower or any other Person to
the Administrative Agent or the Secured Parties;

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     (f) any release of anyone who may be liable in any manner for the payment of any amounts owed
by any Guarantor, the Borrower or any other Person to the Administrative Agent or any Secured
Party;

     (g) any modification or termination of the terms of any intercreditor or subordination
agreement pursuant to which claims of other creditors of any Guarantor, the Borrower or any other
Person are subordinated to the claims of the Administrative Agent or any Secured Party; or

     (h) any application of any sums by whomever paid or however realized to any amounts owing by
any Guarantor, the Borrower or any other Person to the Administrative Agent or any Secured Party on
account of the Guaranteed Obligations in such manner as the Administrative Agent or any Secured
Party shall determine in its reasonable discretion.

     SECTION 6. Demand by the Administrative Agent. In addition to the terms set forth in
Section 2, and in no manner imposing any limitation on such terms, if all or any portion of the
then outstanding Guaranteed Obligations under the Credit Agreement are declared to be immediately
due and payable, then the Guarantors shall, upon demand in writing therefor by the Administrative
Agent to the Guarantors, pay all or such portion of the outstanding Guaranteed Obligations then
declared due and payable.

     SECTION 7. Remedies. Upon the occurrence and during the continuance of any Event of
Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the
request of the Required Lenders, the Administrative Agent shall, enforce against the Guarantors
their respective obligations and liabilities hereunder and exercise such other rights and remedies
as may be available to the Administrative Agent and the Secured Parties hereunder, under the Loan
Documents or otherwise.

     SECTION 8. Benefits of Guaranty. The provisions of this Guaranty are for the benefit
of the Administrative Agent and the Secured Parties and their respective permitted successors,
transferees, endorsees and assigns, and nothing herein contained shall impair, as between the
Borrower, the Administrative Agent and the Secured Parties, the obligations of the Borrower under
the Loan Documents. In the event all or any part of the Guaranteed Obligations are transferred,
endorsed or assigned by the Administrative Agent or any Secured Party to any Person or Persons as
permitted under the Credit Agreement, any reference to an “Administrative Agent” or “Secured Party”
herein shall be deemed to refer equally to such Person or Persons.

     SECTION 9. Termination.

     (a) Subject to clause (c) below, this Guaranty shall remain in full force and effect until all
the Guaranteed Obligations and all the obligations of the Guarantors hereunder (other than any
contingent indemnification obligations) shall have been paid in full and the Commitments
terminated.

     (b) No payment made by the Borrower, any Guarantor or any other Person received or collected
by the Administrative Agent or any Secured Party from the Borrower, any Guarantor or any other
Person by virtue of any action or proceeding or any set-off or appropriation or

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application at any time or from time to time in reduction of or in payment of the Guaranteed
Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any
Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by
such Guarantor in respect of the obligations of the Guarantors or any payment received or collected
from such Guarantor in respect of the obligations of the Guarantors), remain liable for the
obligations of the Guarantors up to the maximum liability of such Guarantor hereunder until the
Guaranteed Obligations and all the obligations of the Guarantors (other than any contingent
indemnification obligations) shall have been paid in full and the Commitments terminated.

     (c) Each Guarantor agrees that, if any payment made by the Borrower or any other Person
applied to the Obligations is at any time annulled, set aside, rescinded, invalidated, declared to
be fraudulent or preferential or otherwise required to be refunded or repaid or the proceeds of any
Collateral are required to be refunded by the Administrative Agent or any Secured Party to the
Borrower, its estate, trustee, receiver or any other party, including, without limitation, any
Guarantor, under any Applicable Law or equitable cause, then, to the extent of such payment or
repayment, each Guarantor’s liability hereunder (and any Lien securing such liability) shall be and
remain in full force and effect, as fully as if such payment had never been made, and, if prior
thereto, this Guaranty shall have been canceled or surrendered (and if any Lien or Collateral
securing such Guarantor’s liability hereunder shall have been released or terminated by virtue of
such cancellation or surrender), this Guaranty (and such Lien) shall be reinstated in full force
and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair
or otherwise affect the obligations of such Guarantor in respect of the amount of such payment (or
any Lien or Collateral securing such obligation).

     SECTION 10. Payments. Payments by the Guarantors shall be made to the Administrative
Agent, to be credited and applied upon the Guaranteed Obligations, in immediately available Dollars
to an account designated by the Administrative Agent or at the Administrative Agent’s Office or at
any other address that may be specified in writing from time to time by the Administrative Agent.

     SECTION 11. Representations and Warranties. To induce the Lenders to make any
Extensions of Credit, each Guarantor hereby represents and warrants that:

     (a) each Guarantor is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation or formation, has the requisite power and authority to own
its properties and to carry on its business as now being and hereafter proposed to be conducted and
is duly qualified and authorized to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification and authorization other than
in such jurisdiction where failure to so qualify could not reasonably be expected to have a
Material Adverse Effect;

     (b) each Guarantor has the right, power and authority and has taken all necessary corporate
and other action to authorize the execution, delivery and performance of, this Guaranty. This
Guaranty has been duly executed and delivered by the duly authorized officers of each Guarantor and
this Guaranty constitutes the legal, valid and binding obligation of the

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Guarantors enforceable in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws
from time to time in effect which affect the enforcement of creditors’ rights in general and the
availability of equitable remedies. The execution, delivery and performance by the Guarantors of
this Guaranty will not, by the passage of time, the giving of notice or otherwise, violate any
Applicable Law or Material Contract and will not result in the creation or imposition of any Lien,
other than the Security Interests (as defined in the Collateral Agreement), upon or with respect to
any property or revenues of any Guarantor;

     (c) no consent or authorization of, filing with, or other act by or in respect of, any
arbitrator or Governmental Authority and no consent of any other Person is required in connection
with the execution, delivery, performance, validity or enforceability against any Guarantor party
to this Guaranty, except (a) as may be required by laws affecting the offering and sale of
securities generally, (b) filings under the UCC, and (c) for such consents, authorizations and
filings that have been obtained or made prior to the date hereof;

     (d) no actions, suits or proceedings before any arbitrator or Governmental Authority are
pending or, to the knowledge of such Guarantor, threatened by or against such Guarantor or against
any of its properties with respect to this Guaranty or any of the transactions contemplated hereby;

     (e) each Guarantor has such title to the real property owned or leased by it as is necessary
or desirable to the conduct of its business, and valid and legal title to all of its personal
property and assets, except those which have been disposed of by the Borrower or its Subsidiaries
subsequent to such date which dispositions have been in the ordinary course of business or as
otherwise expressly permitted under the Credit Agreement;

     (f) except for the Security Interests (as defined in the Collateral Agreement), each Guarantor
has rights in each item of the Collateral free and clear of any and all Liens or claims other than
Permitted Liens. No Collateral is in the possession or Control of any Person asserting any claim
thereto or security interest therein, except that the Administrative Agent or its designee may
obtain possession or Control of Collateral as contemplated hereby; and

     (g) as of the Closing Date (or such later date upon which such Guarantor became a party
hereto), such Guarantor (i) has capital sufficient to carry on its business and transactions and
all business and transactions in which it engages and is able to pay its debts as they mature, (ii)
owns property having a value, both at fair valuation on a going concern basis and at present fair
saleable value on a going concern basis, greater than the amount required to pay its probable
liabilities (including contingencies) and (iii) does not believe that it will incur debts or
liabilities beyond its ability to pay such debts or liabilities as they mature, subject in each
case to the first sentence of Section 2(b) hereof.

     SECTION 12. Amendments. None of the terms or provisions of this Guaranty may be
waived, amended, supplemented or otherwise modified except in accordance with Section 14.11 of the
Credit Agreement.

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     SECTION 13. Notices. All notices, requests and demands to or upon the Administrative
Agent or any Guarantor hereunder shall be effected in the manner provided for in Section 14.1 of
the Credit Agreement.

     SECTION 14. Enforcement Expenses, Indemnification.

     (a) Each Guarantor agrees to pay or reimburse each Secured Party and the Administrative Agent
for all its costs and expenses incurred in connection with enforcing or preserving any rights under
this Guaranty and the other Loan Documents to which such Guarantor is a party, (including, without
limitation, in connection with any workout, restructuring, bankruptcy or other similar proceeding)
including, without limitation, the fees and disbursements of counsel to each Secured Party and of
counsel to the Administrative Agent.

     (b) Each Guarantor agrees to pay, and to save the Administrative Agent and the Secured Parties
harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any
and all stamp, excise, sales or other taxes (in each case, to the same extent that the Borrower
would be required to do so under Section 5.11 of the Credit Agreement) which may be payable or
determined to be payable with respect to any of the Collateral or in connection with any of the
transactions contemplated by this Guaranty.

     (c) Each Guarantor agrees to pay, and to save the Administrative Agent and the Secured Parties
harmless from any and all liabilities, obligations, losses, damages, penalties, costs and expenses
in connection with actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement, performance and
administration of this Guaranty to the extent any Guarantor would be required to do so pursuant to
Section 14.2 of the Credit Agreement.

     (d) The agreements in this Section 14 shall survive termination of the Commitments and
repayment of the Obligations and all other amounts payable under the Credit Agreement and the other
Loan Documents. All amounts due under this Section shall be payable promptly after demand
therefor.

     SECTION 15. Governing Law. THIS GUARANTY, UNLESS EXPRESSLY SET FORTH HEREIN, SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (INCLUDING SECTION
5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT
REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.

     SECTION 16. Consent to Jurisdiction and Venue.

     (a) Each Guarantor irrevocably and unconditionally submits for itself and its property, to the
nonexclusive jurisdiction of the state and federal courts located in Mecklenburg County, North
Carolina and New York, New York, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Guaranty or any other Loan Document, or for
recognition or enforcement of any judgment, and each of the parties hereto irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard

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and determined in such North Carolina or New York state court or, to the fullest extent
permitted by Applicable Law, in such federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Guaranty or in any other Loan Document shall affect any right that the Administrative Agent or any
Secured Party may otherwise have to bring any action or proceeding relating to this Guaranty or any
other Loan Document against the Company or any other Guarantor or its properties in the courts of
any jurisdiction.

     (b) Each Guarantor irrevocably and unconditionally waives, to the fullest extent permitted by
Applicable Law, any objection that it may now or hereafter have to the laying of venue of any
action or proceeding arising out of or relating to this Guaranty or any other Loan Document in any
court referred to in paragraph (a) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

     (c) Each Guarantor irrevocably consents to service of process in the manner provided for
notices in Section 14.1 of the Credit Agreement. Nothing in this Guaranty will affect the right of
any party hereto to serve process in any other manner permitted by Applicable Law.

     SECTION 17. Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     SECTION 18. No Waiver by Course of Conduct, Cumulative Remedies. Neither the
Administrative Agent nor any Secured Party shall by any act (except by a written instrument
pursuant to Section 12), delay, indulgence, omission or otherwise be deemed to have waived any
right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure to
exercise, nor any delay in exercising on the part of the Administrative Agent or any Secured Party,
of any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. A waiver by the Administrative
Agent or any Secured Party of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Administrative Agent or such Secured Party
would otherwise have on any future occasion. The rights and remedies

11

 

herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

     SECTION 19. Successors and Assigns. This Guaranty shall be binding upon the
successors and assigns of each Guarantor and shall inure to the benefit of each Guarantor (and
shall bind all Persons who become bound as a Guarantor to this Guaranty), the Administrative Agent
and the Secured Parties and their successors and assigns; provided that no Guarantor may
assign, transfer or delegate any of its rights or obligations under this Guaranty without the prior
written consent of the Administrative Agent (given in accordance with Section 12).

     SECTION 20. Severability. Any provision of this Guaranty or any other Loan Document
which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective only to the extent of such prohibition or unenforceability without invalidating the
remainder of such provision or the remaining provisions hereof or thereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

     SECTION 21. Headings. The Section headings used in this Guaranty are for convenience
of reference only and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

     SECTION 22. Counterparts. This Guaranty may be executed in counterparts (and by
different parties hereto in different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page of this Guaranty by telecopy shall be effective as delivery of a
manually executed counterpart of this Guaranty.

     SECTION 23. Set-Off. Each Guarantor hereby irrevocably authorizes the Administrative
Agent and each Secured Party at any time and from time to time pursuant to Section 14.3 of the
Credit Agreement, without notice to such Guarantor or any other Guarantor, any such notice being
expressly waived by each Guarantor, to set-off and appropriate and apply any and all deposits
(general or special, time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by the Administrative Agent or such
Secured Party to or for the credit or the account of such Guarantor, or any part thereof in such
amounts as the Administrative Agent or such Secured Party may elect, against and on account of the
obligations and liabilities of such Guarantor to the Administrative Agent or such Secured Party
hereunder and claims of every nature and description of the Administrative Agent or such Secured
Party against such Guarantor, in any currency, whether arising hereunder, under the Credit
Agreement, any other Loan Document or otherwise, as the Administrative Agent or such Secured Party
may elect, whether or not the Administrative Agent or any Secured Party has made any demand for
payment and although such obligations, liabilities and claims may be contingent or unmatured. The
Administrative Agent and each Secured Party shall notify such Guarantor promptly of any such
set-off and the application made by the Administrative Agent or such Secured Party of the proceeds
thereof; provided that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of the Administrative Agent and each Secured Party under
this Section 23 are in addition to other rights and remedies (including,

12

 

without limitation, other rights of set-off) which the Administrative Agent or such Secured Party
may have.

     SECTION 24. Integration. This Guaranty, any Hedging Agreement between the Borrower
and a Secured Party and the other Loan Documents, and any separate letter agreements with respect
to fees payable to the Administrative Agent and the Arrangers, constitute the entire contract among
the parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matters hereof. In the event of any
conflict between the provisions of this Guaranty and the Credit Agreement, the provisions of the
Credit Agreement shall control; provided that the inclusion of supplemental rights or
remedies in favor of the Administrative Agent or the Secured Parties in this Guaranty shall not be
deemed a conflict with the Credit Agreement.

     SECTION 25. Acknowledgements. Each Guarantor hereby acknowledges that: (i) it has
discussed this Guaranty with its counsel, (ii) neither the Administrative Agent nor any Secured
Party has any fiduciary relationship with or duty to any Guarantor arising out of or in connection
with this Guaranty or any of the other Loan Documents, and the relationship between the Guarantors,
on the one hand, and the Administrative Agent and Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor, and (iii) no joint venture is created
hereby or by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby or thereby among the Secured Parties or among the Guarantors and the Secured
Parties.

     SECTION 26. Additional Guarantors. Each Subsidiary of the Borrower that is required
to become a party to this Guaranty pursuant to Section 9.9 of the Credit Agreement shall
become a Guarantor for all purposes of this Guaranty upon execution and delivery by such Subsidiary
of a supplement in form and substance satisfactory to the Administrative Agent.

     SECTION 27. Releases.

     (a) At such time as the Guaranteed Obligations shall have been paid in full (other than any
contingent indemnification obligations) and the Commitments have been terminated, this Guaranty and
all obligations (other than those expressly stated to survive such termination) of the
Administrative Agent and each Guarantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party.

     (b) If any Guarantor shall cease to be a Restricted Subsidiary as a result of a transaction
permitted under the Credit Agreement, then, at the request of the Borrower and at the expense of
the Guarantors, such Guarantor shall be released from its obligations hereunder.

[Signature Pages to Follow]

13

 

     IN WITNESS WHEREOF, each of the Guarantors has executed and delivered this Guaranty under seal
by their duly authorized officers, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	JBX GENERAL PARTNER LLC, as Guarantor
	 
	 	 	 	 	 	 
	 	 	By:	 	Jack in the Box Inc.,

as sole member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Harold L. Sachs
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Harold L. Sachs
	 

	 	 	 	Title:
	 	Vice President and Treasurer
	 
	 	 	 	 	 	 
	 	 	JBX LIMITED PARTNER LLC, as Guarantor
	 
	 	 	 	 	 	 
	 	 	By:	 	Jack in the Box Inc.,

as sole member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Harold L. Sachs
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Harold L. Sachs
	 

	 	 	 	Title:
	 	Vice President and Treasurer

	 	 	 	 	 	 	 	 	 
	 	 	JACK IN THE BOX EASTERN
DIVISION L.P., as 
Guarantor
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	JBX General Partner LLC,

as general partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Jack in the Box Inc.,

as sole member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Harold L. Sachs
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Harold L. Sachs
	 

	 	 	 	 	 	Title:
	 	Vice President and Treasurer

 

 

	 	 	 	 	 
	 	 	QDOBA RESTAURANT
CORPORATION, as Guarantor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gary Beisler
	 

	 	 	 	 
	 

	 	Name:
	 	Gary Beisler
	 

	 	Title:
	 	President
	 
	 	 	 	 
	 	 	STORED VALUE CARD,
INC., as Guarantor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Harold L. Sachs
	 

	 	 	 	 
	 

	 	Name:
	 	Harold L. Sachs
	 

	 	Title:
	 	Vice President and Treasurerexv4w2

 

EXHIBIT 4.2

OREXIGEN THERAPEUTICS, INC.

 

SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

November 20, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1.

	 	Registration Rights
	 	 	1	 
	 

	 	1.1 Definitions
	 	 	1	 
	 

	 	1.2 Request for Registration
	 	 	2	 
	 

	 	1.3 Company Registration
	 	 	4	 
	 

	 	1.4 Obligations of the Company
	 	 	4	 
	 

	 	1.5 Furnish Information
	 	 	6	 
	 

	 	1.6 Expenses of Demand Registration
	 	 	6	 
	 

	 	1.7 Expenses of Company Registration
	 	 	7	 
	 

	 	1.8 Underwriting Requirements
	 	 	7	 
	 

	 	1.9 Delay of Registration
	 	 	8	 
	 

	 	1.10 Indemnification
	 	 	8	 
	 

	 	1.11 Form S-3 Registration
	 	 	10	 
	 

	 	1.12 Limitations on Subsequent Registration Rights
	 	 	11	 
	 

	 	1.13 “Market Stand-Off” Agreement
	 	 	11	 
	 

	 	1.14 Assignment of Registration Rights
	 	 	12	 
	 

	 	1.15 Reports Under the Securities Exchange Act of 1934
	 	 	12	 
	 

	 	1.16 Termination of Registration Rights
	 	 	13	 
	 
	 	 	 	 	 	 
	2.

	 	Covenants of the Company
	 	 	13	 
	 

	 	2.1 Financial Information
	 	 	13	 
	 

	 	2.2 Inspection
	 	 	14	 
	 

	 	2.3 Termination of Information and Inspection Rights
	 	 	14	 
	 

	 	2.4 Right of First Offer
	 	 	14	 
	 

	 	2.5 Vesting of Stock
	 	 	16	 
	 

	 	2.6 Qualified Small Business
	 	 	16	 
	 

	 	2.7 Indebtedness
	 	 	17	 
	 

	 	2.8 Board Committee Rights, Observer Rights
	 	 	17	 
	 

	 	2.9 Board of Directors Meetings
	 	 	17	 
	 

	 	2.10 Assignment of Other Rights of First Refusal
	 	 	18	 
	 

	 	2.11 Proprietary Rights Agreements
	 	 	18	 
	 

	 	2.12 Director & Officer Liability Insurance
	 	 	18	 
	 

	 	2.13 Market Stand-Off Agreement with Future Security Holders
	 	 	18	 
	 

	 	2.14 Termination of Covenants
	 	 	18	 
	 
	 	 	 	 	 	 
	3.

	 	Transfers of Securities by Investors
	 	 	18	 
	 

	 	3.1 Notices
	 	 	18	 
	 

	 	3.2 Acceptance of Offer
	 	 	19	 
	 

	 	3.3 Allocation of Securities and Payment
	 	 	19	 
	 

	 	3.4 Failure to Exercise
	 	 	19	 
	 

	 	3.5 Assignment
	 	 	19	 
	 

	 	3.6 Permitted Transfers
	 	 	19	 
	 

	 	3.7 Termination
	 	 	20	 
	 
	 	 	 	 	 	 
	4.

	 	Miscellaneous
	 	 	20	 
	 

	 	4.1 Successors and Assigns
	 	 	20	 
	 

	 	4.2 Governing Law
	 	 	20	 
	 

	 	4.3 Counterparts
	 	 	20	 

- i -

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	4.4 Titles and Subtitles
	 	 	20	 
	 

	 	4.5 Notices
	 	 	20	 
	 

	 	4.6 Expenses
	 	 	21	 
	 

	 	4.7 Amendments and Waivers
	 	 	21	 
	 

	 	4.8 Severability
	 	 	21	 
	 

	 	4.9 Aggregation of Stock
	 	 	21	 
	 

	 	4.10 Entire Agreement
	 	 	21	 

Schedule A – List of Investors

- ii -

 

OREXIGEN THERAPEUTICS, INC.

SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

          THIS SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is made as of
November 20, 2006, by and among Orexigen Therapeutics, Inc., a Delaware corporation (the
“Company”), the parties listed on Schedule A hereto (collectively, the “Investors” and each
individually, an “Investor”).

RECITALS

          WHEREAS, the Company and the Investors are parties to that certain Amended and Restated
Investor Rights Agreement, dated as of April 22, 2005 (the “Prior Rights Agreement”).

          WHEREAS, in connection with the purchase and sale of shares of Series C Preferred Stock
pursuant to the terms of a Series C Preferred Stock Purchase Agreement of even date herewith by and
among the Company and the other parties thereto (the “Purchase Agreement”) the Company and the
Investors desire to amend and restate the Prior Rights Agreement in its entirety and to provide for
the rights of the Investors with respect to information about the Company and with respect to
restriction.

AGREEMENT

          NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the
parties hereto agree as follows:

	 	1.	 	Registration Rights. The Company covenants and agrees as follows:

	 	1.1	 	Definitions. For purposes of this Agreement:

                (a) The term “Act” means the Securities Act of 1933, as amended.

                (b) The term “Change in Control” means any transaction or series of related transactions
deemed to be a liquidation, dissolution or winding up of the Company pursuant to the Company’s then
current Certificate of Incorporation.

                (c) The term “Common Stock” means the common stock of the Company.

                (d) The terms “Form S-1”, “Form S-3” and “Form S-8” mean such forms under the Act as in effect
on the date hereof or any successor registration form, document or policy subsequently adopted by
the SEC to replace such forms, or in the case of Form S-3, any
registration form under the Act subsequently adopted by the SEC which permits inclusion or
incorporation of substantial information by reference to other documents filed by the Company with
the SEC.

 

 

                (e) The term “Holder” means any person owning or having the right to acquire Registrable
Securities or any assignee thereof in accordance with Section 3 hereof.

                (f) The term “IPO” shall mean the closing of the Company’s first firm commitment, underwritten
public offering registered under the Act in connection with which all outstanding shares of
Preferred Stock are automatically converted into shares of Common Stock pursuant to the terms of
the Company’s then current Certificate of Incorporation.

                (g) The term “1934 Act” means the Securities Exchange Act of 1934, as amended.

                (h) The term “Preferred Stock” means collectively the Series A Preferred Stock, the Series B
Preferred Stock and the Series C Preferred Stock of the Company.

                (i) The term “register,” “registered,” and “registration” refer to a registration effected by
preparing and filing with the SEC a registration statement or similar document in compliance with
the Act, and the declaration or ordering of effectiveness of such registration statement or
document.

                (j) The term “Registrable Securities” means the Common Stock issuable or issued upon
conversion of the Preferred Stock, and any Common Stock of the Company issued upon any stock split,
stock dividend, recapitalization, or similar event, dividend or other distribution with respect to,
or in exchange for or in replacement of the Preferred Stock excluding in all cases, however (1) any
Registrable Securities sold by a person in a transaction in which such person’s rights under
Section 1 are not assigned or (2) any Common Stock held by a Holder that ceases to have
registration rights in accordance with Section 1.16.

               (k) The number of shares of “Registrable Securities then Outstanding” shall be the sum of (i)
the number of shares of Common Stock outstanding which are Registrable Securities, plus (ii) the
number of shares of Common Stock issuable pursuant to then exercisable or convertible securities
which are Registrable Securities.

                (l) The term “SEC” shall mean the Securities and Exchange Commission.

	 	1.2	 	Request for Registration

                (a) If the Company shall receive at any time after the earlier of (i) the fourth (4th)
anniversary of the date hereof or (ii) six (6) months after the effective date of the IPO (other
than a registration statement relating either to the sale of securities to employees of the Company
pursuant to a stock option, stock purchase or similar plan or a SEC Rule 145 transaction that does
not cause any securities of the Company similar to the Registrable Securities to be listed on a
securities exchange), a written request from the Holders of at least 30% of the Registrable
Securities then outstanding that the Company file a registration statement
under the Act covering the registration of at least twenty percent (20%) of the Registrable
Securities then outstanding (or such lesser number of shares of Registrable Securities, with an
anticipated aggregate offering price of which, net of underwriting discounts and commissions, would
exceed $5,000,000) then the Company shall:

 - 2 - 

 

               
(b) within ten (10) days of the receipt thereof, give written notice of such request to all
Holders; and

                (c) use its best efforts to effect as soon as practicable, the registration under the Act of
all Registrable Securities which the Holders request (within twenty (20) days of the mailing of
such notice by the Company in accordance hereof) to be registered, subject to the limitations of
subsection 1.2(d).

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

                (e) Notwithstanding the foregoing, if the Company shall furnish to Holders requesting a
registration statement pursuant to this Section 1.2, a certificate signed by the Chief Executive
Officer of the Company stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its stockholders for such
registration statement to be filed and it is therefore essential to defer the filing of such
registration statement, the Company shall have the right to defer taking action with respect to
such filing for a period of not more than 90 days after receipt of the request of the Initiating
Holders; provided, however, that the Company may not utilize this right more than once in any
twelve (12) month period.

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

                     (i) After the Company has effected two (2) registrations pursuant to this Section 1.2 and such
registrations have been declared or ordered effective provided that either (A) the conditions of
Section 1.4(a) have been satisfied or (B) the

 - 3 - 

 

registration statements continue to remain effective
and there are no stop orders in effect with respect to such registration statements;

                     (ii) During the period starting with the date thirty (30) days prior to the Company’s good
faith estimate of the date of filing of, and ending on a date 90 days after the effective date of a
registration subject to Section 1.3 hereof (unless such registration is the Company’s initial
public offering of its securities, in which event ending on a date 180 days after such effective
date); provided that the Company is actively employing in good faith all reasonable efforts to
cause such registration statement to become effective; or

                     (iii) If the Initiating Holders propose to dispose of shares of Registrable Securities that
may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 1.11
below.

     1.3 Company Registration. If (but without any obligation to do so) the Company
proposes to register (including for this purpose a registration effected by the Company for
stockholders other than the Holders) any of its stock or other securities under the Act in
connection with the public offering of such securities solely for cash (other than (i) a
registration relating solely to the sale of securities to participants in a Company stock option
plan or stock purchase plan, (ii) a registration on any form which does not include substantially
the same information as would be required to be included in a registration statement covering the
sale of the Registrable Securities or (iii) a registration in which the only Common Stock being
registered is Common Stock issuable upon conversion of debt securities which are also being
registered or (iv) an SEC Rule 145 transaction), the Company shall, at such time, promptly give
each Holder of shares of Registrable Securities, written notice of such registration. Upon the
written request of a Holder of shares of Registrable Securities, given within twenty (20) days
after receipt of such notice by the Company in accordance with Section 4.5, the Company shall,
subject to the provisions of Section 1.8, use its best efforts to cause to be registered under the
Act all of the Registrable Securities that each such Holder has requested to be registered. If a
Holder decides not to include all of its Registrable Securities in any registration statement
thereafter filed by the Company, such Holder shall nevertheless continue to have the right to
include any Registrable Securities in any subsequent registration statement or registration
statements as may be filed by the Company with respect to offerings of its securities, all upon the
terms and conditions set forth herein. The Company shall have the right to terminate or withdraw
any registration initiated by it under this Section 1.3 whether or not any Holder has elected to
include securities in such registration, and shall promptly notify any Holder that has elected to
include shares in such registration of such termination or withdrawal. The expenses of such
withdrawn registration shall be borne by the Company in accordance with Section 1.7 hereof.

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

                (a) Prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to become effective, and
keep such registration statement effective for a period of up to one hundred twenty (120) days or
until the distribution contemplated in the Registration Statement

 - 4 - 

 

has been completed; provided,
however, that such one hundred twenty (120) day period shall be extended for a period of time equal
to the period the Holder refrains from selling any securities included in such registration at the
request of the Company or an underwriter of Common Stock (or other securities) of the Company.

                (b) Prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Act with respect to the disposition of all
securities covered by such registration statement.

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

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

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

                (f) Notify each Holder of Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the Act of the happening
of any event as a result of which the prospectus included in such registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing. The Company shall promptly prepare and furnish to such
Holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may
be necessary so that, as thereafter delivered to the purchaser of such shares, such prospectus will
not include an untrue statement of material fact or omit to state a material fact necessary to make
statements therein, in light of the circumstances under which they were made, not misleading.

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

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

 - 5 - 

 

                (i) Furnish, at the request of any Holder requesting registration of Registrable Securities
pursuant to this Section 1, on the date that such Registrable Securities are delivered to the
underwriters for sale in connection with a registration pursuant to this Section 1, if such
securities are being sold through underwriters, or, if such securities are not being sold through
underwriters, on the date that the registration statement with respect to such securities becomes
effective, (i) an opinion, dated such date, of the counsel representing the Company for the
purposes of such registration, in form and substance as is customarily given to underwriters in an
underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities and (ii) a letter dated such date, from the independent
certified public accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to the Holders requesting registration of Registrable
Securities;

               
(j) Notify each Holder promptly after the Company receives notice thereof, of the time when
such registration statement has become effective or a supplement of such registration has been
filed;

                (k) Advise each Holder promptly after the Company shall receive notice or obtain knowledge
thereof, of the issuance of any stop order by the SEC suspending the effectiveness of such
registration statement or the threatening of any proceeding for such purpose and promptly use all
best efforts to prevent the issuance of any stop order should such be issued; and;

                (l) Make generally available to its security holders, and to deliver to the Holders an
earnings statement of the Company (that will satisfy the provisions of Section 11(a) of the Act)
covering a period of twelve (12) months beginning after the effective date of the registration
statement (as defined in Rule 158(c) under the Act) as soon as is reasonably practicable after the
termination of such twelve (12) month period.

     1.5 Furnish Information. It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of
any selling Holder that such Holder shall furnish to the Company such information regarding itself,
the Registrable Securities held by it, and the intended method of disposition of such securities as
shall be required to effect the registration of such Holder’s Registrable Securities.

     1.6 Expenses of Demand Registration. All expenses other than underwriting discounts and commissions, including (without
limitation) all registration, filing and qualification fees, printers’ and accounting fees,
reasonable fees and expenses of one special counsel to the Holders (such special counsel to be
selected by a majority in interest of the selling Holders based on the number of shares to be sold
in such registration) and fees and disbursements of counsel for the Company shall be borne by the
Company; provided, however, that the Company shall not be required to pay for any expenses of any
registration proceeding begun pursuant to Section 1.2 if the registration request is subsequently
withdrawn at the request of the Holders of a majority of the Registrable Securities to be
registered (in which case all participating Holders shall bear such expenses), unless the Holders
of a majority of the

 - 6 - 

 

Registrable Securities agree to forfeit their right to their demand
registration pursuant to Section 1.2; provided further, however, that if at the time of such
withdrawal, the Holders have learned of a material adverse change in the condition, business, or
prospects of the Company from that known to the Holders at the time of their request and have
withdrawn the request with reasonable promptness following disclosure of such material adverse
change, then the Holders shall not be required to pay any of such expenses and shall retain their
rights pursuant to Section 1.2.

     1.7 Expenses of Company Registration. The Company shall bear and pay all expenses
incurred in connection with any registration, filing or qualification of Registrable Securities
with respect to the registrations pursuant to Section 1.3 for each Holder (which right may be
assigned as provided in Section 3.1), including all registration, filing, and qualification fees,
and printers and accounting fees relating or apportionable thereto and the reasonable fees and
expenses incurred by one special counsel to such selling Holders selected by a majority in interest
of the selling Holders, but excluding underwriting discounts and commissions relating to the
Registrable Securities.

     1.8 Underwriting Requirements. In connection with any offering involving an
underwriting of shares of the Company’s capital stock, the Company shall not be required under
Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the
terms of the underwriting as agreed upon between the Company and the underwriters selected by it
(or by other persons entitled to select the underwriters), and then only in such quantity, if any,
as the underwriters determine in their sole discretion will not jeopardize the success of the
offering by the Company. If the total amount of securities, including Registrable Securities,
requested by stockholders to be included in such offering exceeds the amount of securities sold
other than by the Company that the underwriters determine in their sole discretion is compatible
with the success of the offering, then in such event the Company shall be required to include in
the offering only that number of such securities, including Registrable Securities, which the
underwriters determine in their sole discretion will not jeopardize the success of the offering;
provided, however, that any such limitation by the underwriters will be apportioned as follows: (i)
all securities other than Registrable Securities will be excluded from the registration first, and
(ii) to the extent still required by the underwriters, the Registrable Securities requested to be
registered by the Holders shall be excluded from such registration subject to the following
sentences. If a limitation on the number of shares is still required, the number of shares of
Registrable Securities that may be included in the registration and underwriting shall be allocated
among all participating Holders
in proportion, as nearly as practicable, to the respective amounts of Registrable Securities
held by such Holders at the time of filing the registration statement. For purposes of the
preceding sentence concerning apportionment, for any selling stockholder which is a Holder of
Registrable Securities and which is a partnership, limited liability company or corporation, the
affiliates, partners, retired partners, members, retired members and stockholders of such holder,
or the estates and family members of any such partners and retired partners, members and retired
members and any trusts for the benefit of any of the foregoing persons shall be deemed to be a
single “selling stockholder,” and any pro-rata reduction with respect to such “selling stockholder”
shall be based upon the aggregate amount of shares carrying registration rights owned by all
entities and individuals included in such “selling stockholder,” as defined in this sentence.
Notwithstanding the foregoing, the number of Registrable Securities included in such registration
and underwriting shall not be reduced below

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30% of the securities included in such registration
unless such offering is the initial public offering of the Company’s securities in which case the
selling Holders may be excluded entirely if the underwriters make the determination described above
and no securities other than those of the Company are included in such registration. No
Registrable Securities or other securities excluded from the underwriting by reason of this Section
1.8 shall be included in such registration statement.

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

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

          (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder,
each of such Holder’s officers, directors, partners, members and managers, any underwriter (as
defined in the Act) for such Holder and each person, if any, who controls such Holder or
underwriter within the meaning of the Act or the 1934 Act, against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the Act, the 1934 Act or
other federal or state law, insofar as such losses, claims, damages, or liabilities (joint or
several) (or actions, proceedings or settlements in respect thereof) arise out of or are based upon
any of the following statements, omissions or violations (collectively a “Violation”): (i) any
untrue statement or alleged untrue statement of a material fact contained in such registration
statement, including any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements therein not
misleading, or (iii) any violation or alleged violation by the Company of the Act, the 1934 Act,
any state securities law or any rule or regulation promulgated under the Act, the 1934 Act or any
state securities law; and the Company will reimburse each such Holder, officer, director, partner,
member, manager, underwriter or controlling person, any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such loss, claim, damage, liability, or
action, proceeding or settlement; provided, however, that the indemnity
agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability, or action or proceeding if such settlement is effected
without the consent of the Company (which consent shall not be unreasonably withheld or delayed),
nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or
action or proceeding to the extent that it arises out of or is based upon a Violation which occurs
in reliance upon and in conformity with written information furnished expressly for use in
connection with such registration, and duly executed, by any such Holder, underwriter or
controlling person.

          (b) To the extent permitted by law, each selling Holder will indemnify and hold harmless the
Company, each of its directors, each of its officers who has signed the registration statement,
each person, if any, who controls the Company within the meaning of the Act, any underwriter, any
other Holder selling securities in such registration statement and any controlling person of any
such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or
several) to which any of the foregoing persons may become subject, under

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the Act, the 1934 Act or
other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions,
proceeding or settlement in respect thereto) arise out of or are based upon any Violation, in each
case to the extent (and only to the extent) that such Violation occurs in reliance upon and in
conformity with written information expressly furnished, and duly executed, by such Holder for use
in connection with such registration; and each such Holder will pay any legal or other expenses
reasonably incurred by any person intended to be indemnified pursuant to this subsection 1.10(b),
in connection with investigating or defending any such loss, claim, damage, liability, or action,
proceeding or settlement; provided, however, that the indemnity agreement contained in this
subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action or proceeding if such settlement is effected without the consent of the Holder
(which consent shall not be unreasonably withheld); provided, that, in no event shall any indemnity
under this subsection 1.10(b) exceed the net proceeds from the offering received by such Holder.

          (c) Promptly after receipt by an indemnified party under this Section 1.10 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Section 1.10,
deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires,
jointly with any other indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without conflict by one
counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential differing interests
between such indemnified party and any other party represented by such counsel in such proceeding.
The failure to deliver written notice to the indemnifying party within a reasonable time after the
commencement of any such action, to the extent prejudicial to its ability to defend such action,
shall relieve such indemnifying party of any liability to the indemnified party under this Section
1.10, but the omission so to deliver written notice to the indemnifying party will not relieve it
of any liability that it may have to any indemnified party otherwise than under this Section 1.10.

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

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indemnified party
and the parties’ relative intent, knowledge, access to information, and opportunity to correct or
prevent such statement or omission.

          (e) The obligations of the Company and Holders under this Section 1.10 shall survive the
completion of any offering of Registrable Securities in a registration statement under this Section
1, and otherwise. No indemnifying party, in the defense of any such claim or litigation, shall,
except with the consent of each indemnified party, consent to entry of any judgment or enter into
any settlement which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to such indemnified party of a release from all liability in respect to such claim or
litigation.

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

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

          (b) use its best efforts to effect, as soon as practicable, such registration and all such
qualifications and compliances as may be so requested and as would permit or facilitate the sale
and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are
specified in such request, together with all or such portion of the Registrable Securities of any
other Holder or Holders joining in such request as are specified in a written request given within
15 days after receipt of such written notice from the Company; provided, however, that the Company
shall not be obligated to effect any such registration, qualification or compliance, pursuant to
this Section 1.11: (1) if Form S-3 is not available for such offering by the Holders; (2) if the
participating Holders, together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such other securities
(if any) at an anticipated aggregate price to the public (net of any underwriters’ discounts or
commissions) of less than $1,000,000; (3) if the Company shall furnish to the Holders a certificate
signed by the Chief Executive Officer of the
Company stating that in the good faith judgment of the Board of Directors of the Company, it
would be seriously detrimental to the Company and its stockholders for such Form S-3 Registration
to be effected at such time, in which event the Company shall have the right to defer the filing of
the Form S-3 registration statement for a period of not more than sixty (60) days after receipt of
the request of the Holder or Holders under this Section 1.11; provided, however, that the Company
shall not utilize this right more than once in any twelve (12) month period; (4) if the Company
has, within the twelve (12) month period preceding the date of such request, already effected two
registrations on Form S-3 for the Holders pursuant to this Section 1.11; or (5) in any particular
jurisdiction in which the Company would be required to qualify to do business or to execute a
general consent to service of process in effecting such registration, qualification or compliance
unless the Company is already subject to service in such jurisdiction and except as may be required
by the Act.

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          (c) Subject to the foregoing, the Company shall file a registration statement covering the
Registrable Securities and other securities so requested to be registered as soon as practicable
after receipt of the request or requests of the Holders. All expenses incurred in connection with
a registration requested pursuant to Section 1.11, including (without limitation) all registration,
filing, qualification, printer’s and accounting fees, reasonable fees and expenses for one special
counsel for the Holders associated with Registrable Securities (such special counsel to be selected
by a majority in interest of the Holders requesting such registration) and the fees and
disbursements of counsel for the Company, but excluding any underwriters’ discounts or commissions
shall be borne by the Company. Registrations effected pursuant to this Section 1.11 shall not be
counted as demands for registration or registrations effected pursuant to Sections 1.2 or 1.3,
respectively.

          (d) The Company shall not be obligated to effect any registration pursuant to this Section
1.11 if the Company delivers to the Holders requesting registration under this Section 1.11 an
opinion, in form and substance acceptable to such Holders, of counsel satisfactory to such Holders,
that the Registrable Securities so requested to be registered may be sold or transferred pursuant
to Rule 144(k) under the Act.

     1.12 Limitations on Subsequent Registration Rights. From and after the date of this
Agreement, the Company shall not, without the prior written consent of the Holders of at least
two-thirds of the outstanding Registrable Securities, enter into any agreement with any holder or
prospective holder of any securities of the Company which would give such holder or prospective
holder any registration rights if (a) such registration rights would be pari passu with, or senior
to, any registration rights provided under this Agreement or (b) such holder would not be bound by
obligations similar to the obligations of the Holders set forth in Section 1.13.

     1.13 “Market Stand-Off” Agreement. Each Holder hereby agrees that, during the period
of duration specified by the Company and an underwriter of Common Stock or other securities of the
Company, following the effective date of a registration statement of the Company filed under the
Act, it shall not, to the extent requested by the Company and such underwriter, directly or
indirectly sell, offer to
sell, contract to sell (including, without limitation, any short sale), grant any option to
purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound)
any securities of the Company held by it at any time during such period except Common Stock
included in such registration; provided, however, that:

          (a) such agreement shall be applicable only to the first such registration statement of the
Company which covers Common Stock to be sold on its behalf to the public in a firmly underwritten
offering;

          (b) all officers, directors and 1% or greater stockholders of the Company enter into similar
agreements; and

          (c) such market stand-off time period shall not exceed one hundred eighty (180) days from the
effective date of the registration statement.

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          In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions
with respect to the Registrable Securities of each Holder (and the shares or securities of every
other person subject to the foregoing restriction) until the end of such period.

          Notwithstanding the foregoing, the obligations described in this Section 1.13 shall not apply
to a registration relating solely to employee benefit plans on Form S-l or Form S-8 or similar
forms which may be promulgated in the future, or a registration relating solely to a Commission
Rule 145 transaction on Form S-4 or similar forms which may be promulgated in the future.

     1.14 Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Section 1 may be assigned (but only with all related
obligations) by a Holder to a transferee or assignee of such securities provided: (a) the Company
is, within a reasonable time after such transfer, furnished with written notice of the name and
address of such transferee or assignee and the securities with respect to which such registration
rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and
subject to the terms and conditions of this Agreement, including without limitation the provisions
of Section 1.13 above; and (c) the transfer: (i) involves a transfer of all of Registrable
Securities of the transferor or at least Five Hundred Thousand (500,000) shares (as adjusted for
stock splits, stock dividends, reverse stock splits or the like after the date hereof) of
Registrable Securities, (ii) is to another holder of Registrable Securities, or (iii) is to current
or former limited or partners, members, managers, stockholders or other affiliates of the
transferor.

     1.15 Reports Under the Securities Exchange Act of 1934. With a view to making
available to the Holders the benefits of Rule 144 promulgated under the Act and any other rule or
regulation of the SEC that may at any time permit a Holder to sell Registrable Securities of the
Company to the public without registration or pursuant to a registration on Form S-3, the Company
agrees to:

          (a) make and keep public information available, as those terms are understood and defined in
SEC Rule 144, at all times after 90 days after the effective date of the first registration
statement filed by the Company for the offering of its securities to the general public;

          (b) take such action, including the voluntary registration of its Common Stock under Section
12 of the 1934 Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their
Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal
year in which the first registration statement filed by the Company for the offering of its
securities to the general public is declared effective;

          (c) file with the SEC in a timely manner all reports and other documents required of the
Company under the Act and the 1934 Act at any time after it has become subject to such reporting
requirements; and

          (d) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied with the reporting
requirements of SEC Rule 144 (at any time after ninety (90) days after the

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effective date of the
first registration statement filed by the Company), the Act and the 1934 Act (at any time after it
has become subject to such reporting requirements), or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of
the most recent annual or quarterly report of the Company and such other reports and documents so
filed by the Company, and (iii) such other information as may be reasonably requested in availing
any Holder of any rule or regulation of the SEC which permits the selling of any such securities
without registration or pursuant to such form.

          1.16 Termination of Registration Rights. No Holder shall be entitled to exercise any
right provided for in this Section 1 upon the earlier of the following to occur: (i) six (6) years
following the consummation of the sale of securities pursuant to the IPO or (ii) the date after the
closing of the IPO on which such Holder, together with its affiliates, holds less than one percent
(1%) of the Company’s outstanding capital stock and all Registrable Securities held by such Holder
may be sold under Rule 144 under the Act within a single ninety (90) day period.

     2. Covenants of the Company

          2.1 Financial Information. The Company will deliver the financial information
identified in Section 2.1(a) to each Investor, and for so long as an Investor holds at least Five
Hundred Thousand (500,000) shares (as adjusted for stock splits, stock dividends, reverse stock
splits or the like after the date hereof) of Registrable Securities (a “Major Holder”) the Company
shall also deliver to such Investor all of the reports and financial information identified in
Sections 2.1(b), (c) and (d).

               (a) As soon as practicable after the end of each fiscal year, and in any event within 120 days
thereafter, audited consolidated balance sheets of the Company and its
subsidiaries, if any, as of the end of such fiscal year, and consolidated statements of income
and consolidated statements of cash flow of the Company and its subsidiaries, if any, for such
year, prepared in accordance with generally accepted accounting principles, consistently applied,
and setting forth in each case in comparative form the figures for the previous fiscal year, all in
reasonable detail. Such financial statements shall be accompanied by a report and opinion thereon
by independent public accountants of national standing selected by the Board of Directors.

               (b) Contemporaneously with delivery to holders of Common Stock, a copy of each report of the
Company delivered to holders of the Company’s Common Stock.

               (c) As soon as practicable after the end of each month, and in any event within thirty (30)
days after the end of each month, an unaudited consolidated balance sheet of the Company as at the
end of such month, and unaudited consolidated statements of income and unaudited consolidated
statements of cash flow for such month and for the current fiscal year to date. Such financial
statements shall be prepared in accordance with generally accepted accounting principles
consistently applied (other than accompanying notes and subject to year-end adjustments), all in
reasonable detail, including detailed quarterly comparison to budget and such financial statements
shall be accompanied by an instrument executed by the Chief Financial Officer or President of the
Company and certifying that such financials fairly

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present the financial condition of the Company
and its results of operation for the period specified, subject to any year-end audit adjustment.

               (d) As soon as practicable, and in any event within sixty (60) days prior to the beginning of
the fiscal year, a copy of the Company’s annual operating plan and budget for the upcoming fiscal
year, which shall include without limitation forecasts of the Company’s revenues, expenses and cash
position on a month-to-month basis for such upcoming fiscal year together with any other budgets or
revised budgets as they become available throughout the fiscal year.

                (e) Each Investor agrees and will cause any representative of the Investor to hold in
confidence and trust and not use or disclose any information provided to or learned by it in
connection with its rights under this Section 2.1 (so long as such information is not in the public
domain), except that such Investor may disclose such information (i) to any partner, member,
subsidiary or parent of such Investor for the purpose of evaluating its investment in the Company
as long as (a) such partner, member, subsidiary or parent is advised of the confidentiality
provisions of this Section 2.1(e) and (b) such Investor uses its commercially reasonable best
efforts to ensure that such partner, member, subsidiary or parent holds such information in
confidence and trust and will not use or disclose any information provided to or learned by it
except as required by law; (ii) at such time as it enters the public domain through no fault of
such Investor; (iii) that is communicated to it free of any obligation of confidentiality; (iv)
that is developed by such Investor or its agents independently of and without reference to any
confidential information communicated by the Company; or (v) as required by applicable law.

          For so long as a Major Holder is eligible to receive reports under this Section 2.1, it shall
also have the right to discuss the affairs, finances and accounts of the Company with the
Company’s officers, all at such reasonable times and as often as may be reasonably requested;
provided, however, that the Company shall not be obligated to provide any information unless the
Major Holder agrees to sign a non-disclosure agreement in customary form.

          2.2 Inspection. The Company shall permit each Major Holder, upon reasonable prior
notice, at such Major Holder’s expense, to visit and inspect the Company’s properties, to examine
its books of account and records and to discuss the Company’s affairs, finances and accounts with
its officers, all at such reasonable times as may be requested by a Major Holder; provided,
however, that the Company shall not be obligated pursuant to this Paragraph 2.2 to provide access
to any information unless the Major Holder agrees to sign a non-disclosure agreement in customary
form.

          2.3 Termination of Information and Inspection Rights. The covenants set forth in
Sections 2.1 and 2.2 shall terminate as to each Major Holder and be of no further force or effect
upon the IPO or when the Company first becomes subject to the periodic reporting requirements of
Sections 12(g) or 15(d) of the 1934 Act, whichever event shall occur first.

          2.4 Right of First Offer. Subject to the terms and conditions specified in this
Section 2.4, the Company hereby grants to each Major Holder a right of first offer with respect to
future sales by the Company of its Shares (as hereinafter defined). A Major Holder shall be

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entitled to apportion the right of first offer hereby granted it among itself and its partners,
members and affiliates in such proportions as it deems appropriate.

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

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

          (b) Within fifteen (15) calendar days after delivery of the Notice, the Major Holder may elect
to purchase or obtain, at the price and on the terms specified in the Notice, up to that portion of
such Shares which equals the proportion that the number of shares of Common Stock issued and held,
or issuable upon conversion of the Preferred Stock then held, by such Major Holder bears to the
total number of shares of Common Stock of the Company then outstanding (assuming full conversion
and exercise of all convertible and exercisable securities outstanding as of the date of the
Notice) (“Pro-Rata Portion”). The Company shall promptly, in writing, inform each Major Holder
which purchases its Pro-Rata Portion (“Fully-Exercising Major Holder”) of any other Major Holder’s
failure to do likewise. During the ten-
day period commencing after such information is delivered to all fully-exercising Major
Holders, each Fully-Exercising Major Holder shall be entitled to obtain that portion of the Shares
not subscribed for by the Major Holders which is equal to the proportion that the number of shares
of Common Stock issued and held, or issuable upon conversion of Preferred Stock then held, by such
Fully-Exercising Major Holder bears to the total number of shares of Common Stock issued and held,
or issuable upon conversion of the Preferred Stock then held, by all Fully-Exercising Major Holders
who wish to purchase some of the unsubscribed Shares. This step shall be repeated until all
unsubscribed shares have been allocated or until the Fully-Exercising Investors no longer desire to
receive an allocation of the unsubscribed Shares.

          (c) If all Shares which Major Holders are entitled to obtain pursuant to subsection 2.4(b) are
not elected to be obtained as provided in subsection 2.4(b) hereof, the Company may, during the
sixty (60)-day period following the expiration of the period provided in subsection 2.4(b) hereof,
consummate the sale of the remaining unsubscribed portion of such Shares to the person or persons
listed in the Notice upon terms specified in the Notice. If the Company does not consummate such
sale within such sixty (60)-day period, the right provided hereunder shall be deemed to be revived
and such Shares shall not be offered unless first reoffered to the Major Holders in accordance
herewith.

          (d) The right of first offer in this Section 2.4 shall not be applicable to (i) the issuance
or sale of shares of Common Stock (or options therefor) to officers, directors or employees of, or
consultants to, the Company or a subsidiary under a stock option or other equity incentive plan or
agreement approved by and in a manner determined by the Board of Directors (including stock grants
to officers, directors, employees or consultants); (ii) the issuance of securities pursuant to the
acquisition of another corporation or entity by the Company by way of

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merger, purchase of all or
substantially all of the assets of the other corporation or stock for stock exchange approved by
the Board of Directors; (iii) the issuance of securities, not primarily for equity financing
purposes, to academic research institutions, financial institutions, strategic partners or lessors
in connection with commercial credit arrangements, equipment financings, debt financings, strategic
partnerships, research and development partnerships, licensing or collaborative arrangements, joint
marketing agreements or similar transactions approved by the Board of Directors; (iv) shares issued
upon conversion of the Preferred Stock; (v) the issuance of securities pursuant to outstanding as
of the date hereof options, warrants, notes or other rights to acquire securities of the Company;
(vi) securities issued in connection with stock splits, stock dividends or like transactions for
which an adjustment to the respective conversion prices of the Preferred Stock is made pursuant to
the Company’s then current Certificate of Incorporation; or (vii) upon the closing of a public
offering of the Company’ securities pursuant to the Act in which all shares of Preferred Stock are
automatically converted to Common Stock pursuant to the Company’s then current Certificate of
Incorporation.

          (e) The right of first offer set forth in this Section 2.4 may not be assigned or transferred,
except that (i) such right is assignable by each Major Holder to any wholly owned subsidiary or
parent of, or to any corporation or entity that is, within the meaning of the Act, controlling,
controlled by or under common control with, any such Major Holder, (ii) any partner or retired
partner of any such Major Holder which is a partnership or any member or retired member of any
Major Holder which is a limited liability company, and (iii) such right is assignable between and
among any of the Major Holders.

          (f) The right of first offer granted under this Section 2.4 shall terminate and be of no
further force and effect upon the effective date of the Company’s registration statement filed in
connection with the IPO and shall not be applicable to any shares sold pursuant thereto.

     2.5 Vesting of Stock. Unless determined otherwise by the Board of Directors or a
disinterested/independent committee thereof, all shares of the Company’s Common Stock, or options
to purchase such Common Stock, issued after the date of this Agreement to employees, officers,
directors, consultants and other service providers of the Company shall vest according to the
following schedule: Twenty-five percent (25%) of the shares shall vest upon the completion of one
(1) year of service and the remaining seventy-five percent (75%) of the shares shall vest in
thirty-six (36) equal monthly installments thereafter.

     2.6 Qualified Small Business. The Company covenants that so long as any of Preferred
Stock or the Common Stock into which such shares are converted, are held by an Investor (in whose
hands such shares of Common Stock are eligible to qualify as “qualified small business stock” as
defined in Section 1202(c) of the of the Internal Revenue Code of 1986, as amended (the “Code”)
(“Qualified Small Business Stock”), it will (i) comply with any applicable filing or reporting
requirements imposed by the Code on issuers of Qualified Small Business Stock and (ii) execute and
deliver to each Investor, from time to time, such forms, documents, schedules and other instruments
as may be reasonably requested thereby to cause the Preferred Stock, or the Common Stock into which
such shares are converted, to qualify as Qualified Small Business Stock and in connection
therewith, execute and deliver to the Investors, from time to time, such forms, documents,
schedules and other instruments as may be

 - 16 - 

 

reasonably requested by an Investor to cause such shares
of capital stock to qualify as Qualified Small Business Stock.

     2.7 Indebtedness. The Company will not, without the approval of the Board of
Directors, incur any indebtedness in excess of $100,000 in a single transaction or a series of
related transactions.

     2.8 Board Committee Rights, Observer Rights. For so long as BAVP VII, L.P. and/or its
affiliated entities (“BAVP”) holds at least Two Million (2,000,000) shares of Registrable
Securities (equitably adjusted for all stock splits, subdivisions, stock dividends, combinations
and the like after the date hereof), the Company shall allow one (1) member of the Board of
Directors, designated by BAVP (the “BAVP Designee”) pursuant to Section 1.2(b)(i) of that certain
Amended and Restated Voting Agreement, dated of even date herewith, by and between the Company and
the stockholders party thereto, to be a member of any and all committees of the Board of Directors.
In addition, (i) for so long as BAVP holds at least Two Million (2,000,000) shares of Registrable
Securities (equitably adjusted for all stock splits, subdivisions, stock dividends, combinations
and the like after the date hereof), the Company shall allow one representative designated by BAVP
(the “BAVP Observer”) and (ii) for so long as Morgenthaler Ventures and/or its affiliated entities
(“Morgenthaler”) holds at least Eight Hundred Thousand (800,000) shares of Registrable Securities
(equitably adjusted for all stock splits, subdivisions, stock dividends, combinations and the like
after the date hereof), the Company shall allow one representative designated by Morgenthaler (the
“Morgenthaler Observer,” and together with the BAVP Observer, the “Observers”) to attend meetings
of the Board of Directors and its committees in a nonvoting capacity. BAVP shall maintain its
right to have the BAVP Observer attend meetings of the Board of Directors regardless of whether or
not the BAVP Designee is a member of the Board of Directors. The Company shall provide the
Observer with copies of all notes, minutes, consents or other materials that are provided by the
Company to its directors; provided, however, that the Company reserves the right to exclude any
Observer from access to any material or meeting or portion thereof if the Company believes upon
advice of counsel that such exclusion is reasonably necessary to preserve the attorney-client
privilege, to protect highly confidential proprietary information or for other similar reasons;
provided, further, that each of BAVP’s and Morgenthaler’s right to appoint an Observer to the Board
of Directors shall automatically expire upon the effectiveness of the registration statement for
the IPO. The Observer shall receive no compensation from the Company for services as an Observer
and shall not be reimbursed for any expenses incurred by the Observer in connection with attendance
of any meeting of the Board of Directors.

     2.9 Board of Directors Meetings. The Board shall meet not less frequently than
quarterly until otherwise agreed by Investors holding at least a majority of the then outstanding
Registrable Securities. All non-employee directors will be compensated by the Company identically,
and out-of-pocket and travel expenses of the directors incurred in attending Board meetings (or
meetings of committees thereof) or in connection with the performance of their duties as directors
shall be paid or reimbursed promptly by the Company. All shares of Common Stock of the Company
issued to non-employee directors shall be issued under a plan which is applicable to all
non-employee directors.

 - 17 - 

 

          2.10 Assignment of Other Rights of First Refusal. The Company covenants that if any
of its officers, directors, employees or consultants elect to sell shares of Common Stock covered
by a right of first refusal and the Company elects not to or is unable to exercise its right of
first refusal, the Company shall assign its right of first refusal on the transfer of the shares
held by such individual to the Investors. The procedures for handling the assigned right of first
refusal shall be substantially similar to the procedures set forth in Section 2.4 above.
Notwithstanding the foregoing, this Section 2.10 shall not apply to shares of capital stock of the
Company held by Michael Cowley, John F. Crowley, Kishore Gadde, M.D., Ranga Krishnan, Ph.D. and
Eckard Weber, M.D., which shares are covered by that certain Amended and Restated Right of First
Refusal and Co-Sale Agreement, dated of even date herewith, by and between the Company and the
parties thereto.

          2.11 Proprietary Rights Agreements. Each employee, officer and consultant of the Company shall enter into an invention
assignment agreement substantially in the forms previously provided to the special counsel for the
Investors.

          2.12 Director & Officer Liability Insurance. Within ninety (90) days after the date
hereof, the Company shall procure and thereafter maintain so long as the Board of Directors deems
commercially reasonable, a customary Director and Officer liability insurance policy in an amount
determined from time to time by the Board of Directors.

          2.13 Market Stand-Off Agreement with Future Security Holders. Unless otherwise
approved by the Investors who then are holders in interest of at least two-thirds of the then
outstanding Registrable Securities, the Company shall cause each future holder of its securities to
enter into an agreement substantially similar to the market stand-off agreement set forth in
Section 1.13 hereof.

          2.14 Termination of Covenants. The covenants set forth in Sections 2.5 and 2.7 to
2.13 shall terminate on, and be of no further force or effect upon (i) the effective date of the
IPO which results in the conversion of the Preferred Stock into Common Stock or (ii) a Change in
Control.

     3. Transfers of Securities by Investors

          3.1 Notices. If any Investor (the “Transferor”) proposes to sell, assign, hypothecate
or otherwise transfer (a “Transfer”) any securities of the Company owned by such Investor from and
after the date of this Agreement, other than pursuant to the provisions of Section 3.6 of this
Agreement, the Transferor shall first give each of the other Investors the right to purchase such
securities by delivering to them a written offer which shall state the price and other terms and
conditions of the proposed Transfer. If the Transferor proposes to Transfer the securities for
consideration other than solely cash and/or promissory notes, the offer to the Investors shall, to
the extent of such consideration, permit each Investor to pay in lieu thereof, cash equal to the
fair market value of such consideration, and the offer shall state the estimate of such fair market
value as determined by the Board. The Transferor shall fix the period of the offer which shall be a
minimum of twenty (20) days or such longer period as is necessary to determine the fair market
value of the consideration referred to in the preceding sentence.

 - 18 - 

 

     3.2
Acceptance of Offer. An Investor may accept an offer (“Purchasing Investor”) only
by giving written notice to the Transferor before the offer expires that such Purchasing Investor
has accepted the offer to purchase some or all of the securities offered (the “Accepted
Securities”); provided, however, that the maximum number or amount of Accepted Securities a
Purchasing Investor shall be entitled to purchase shall be equal to that number or amount of
securities to be
transferred multiplied by a fraction, the numerator of which shall be the number of
Registrable Securities held by such Purchasing Investor and the denominator of which shall be the
aggregate number of Registrable Securities held by all Investors, excluding the Transferor’s
Registrable Securities. Notwithstanding the foregoing, any Purchasing Investor may, at the time it
accepts the offer, subscribe to purchase any or all securities offered which may be available as a
result of the rejection, or partial rejection, of the offer by other Investors, which securities
shall be allocated on a pro rata basis among those Purchasing Investors subscribing to purchase
them based on their relative ownership of Preferred Stock prior to the proposed Transfer.
Notwithstanding any other provision of this Agreement, the Transferor shall be under no obligation
to sell shares to the Investors as described in this Section 3.2 unless the aggregate number of
Accepted Securities shall constitute all of the securities described in the Transferor’s notice
delivered to the Investors pursuant to Section 3.1.

     3.3 Allocation of Securities and Payment. Promptly following the expiration of an
offer, the Transferor shall allocate the Accepted Securities, as set forth in Section 3.2, and
shall by written notice (the “Acceptance Notice”) advise all Purchasing Investors of the number or
amount of securities allocated to each of the Purchasing Investors. Within ten (10) days following
receipt of the Acceptance Notice, each of the Purchasing Investors shall deliver to the Transferor
payment in full for the Accepted Securities purchased by it against delivery by the Transferor to
each Purchasing Investor of a certificate or certificates evidencing the Accepted Securities
purchased by it.

     3.4 Failure to Exercise. To the extent an offer pursuant to Section 3.1 is not
accepted by the other Investors, the Transferor may, for a period of ninety (90) days thereafter,
transfer the unaccepted securities, or any of them, upon terms no more favorable than specified in
such offer, to any Person or Persons; provided that such Person or Persons agrees in writing with
the Company and the Investors, prior to and as a condition precedent to such Transfer, to be bound
by all of the such provisions as the Company may deem reasonably necessary.

     3.5 Assignment. The right of first offer set forth in this Section 3 may not be
assigned or transferred, except that each Investor shall have the right to assign its rights to
purchase such securities under this Section 4 to any affiliate, partner, member, retired partner or
member or affiliate of such Investor; provided such affiliate, partner, member, retired partner or
member or affiliate agrees in writing with the Company and the Investors, prior to and as a
condition precedent to such assignment, to be bound by the terms of this Agreement.

     3.6 Permitted Transfers

          (a) Notwithstanding anything to the contrary contained herein, any Investor which is a
partnership or limited liability company may transfer, without first offering any securities of the
Company to any other Investor, all or any of its securities to a partner, limited partner, member,
retired partner or member of such partnership or limited liability

 - 19 - 

 

company or to the estate of any such partner or member or transfer by will or intestate
succession to his spouse or to the siblings, lineal descendants or ancestors of such partner or
member or his spouse, or to an affiliate; provided such transferee agrees in writing with the
Company and the Investors, prior to and as a condition precedent to such Transfer, to be bound by
the terms of this Agreement.

                (b) Notwithstanding anything to the contrary contained herein, any Investor which is a
corporation may transfer, without first offering any securities of the Company to any other
Investor, all or any of its securities to any of its affiliates, provided such affiliate agrees in
writing with the Company and the Investors, prior to and as a condition precedent to such Transfer,
to be bound by the terms of this Agreement.

                (c) Notwithstanding anything to the contrary contained herein, any Investor who is an
individual may Transfer, without first offering any securities of the Company to any other
Investor, all or any of his securities to his spouse or his or his spouse’s siblings, lineal
descendants or ancestors, or to any trust for any of the foregoing or any entity that is an
affiliate of such Investor (if such Investor is an entity), provided such transferee agrees in
writing with the Company and the Investors, prior to and as a condition precedent to such Transfer,
to be bound by the terms of this Agreement.

          3.7 Termination. The right of first offer granted under this Section 3 shall expire
upon the earlier of the effective date of (i) the IPO or (ii) a Change in Control.

     4. Miscellaneous

          4.1 Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties (including transferees of any shares of Registrable
Securities). Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

          4.2 Governing Law. This Agreement shall be governed by and construed under the
internal laws of the State of California without giving effect to the principles of conflicts of
laws thereof.

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

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

          4.5 Notices. Any notices required in connection with this Agreement shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the party to be
notified, (ii) when sent by confirmed by telex or facsimile if sent during normal business hours

 - 20 - 

 

of
the recipient; if not, then on the next business day, (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with written
notification of receipt. All notices shall be addressed to the holder appearing on the books of
the Company or at such address as such party may designate by ten (10) days advance written notice
to the other parties hereto.

     4.6 Expenses. If any action at law or in equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which such party may be
entitled.

     4.7 Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company
and Investors holding at least two-thirds of the Registrable Securities then outstanding. Any
amendment or waiver effected in accordance with this Section shall be binding upon each holder of
any Registrable Securities then outstanding, each future holder of all such Registrable Securities,
and the Company. Notwithstanding the foregoing, this Agreement may be amended with only the
written consent of the Company for the sole purpose of including additional purchasers of Preferred
Stock as “Investors.” Notwithstanding any provision herein to the contrary, the provisions of
Section 2.8 hereof may not be amended or the rights thereunder waived in a manner that adversely
affects the rights of BAVP to participate on board committees, or the rights of BAVP or
Morgenthaler to designate a board observer, without the written consent of BAVP or Morgenthaler, as
applicable.

     4.8 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

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

     4.10 Entire Agreement. This Agreement (including the Exhibits hereto, if any)
constitutes the full and entire understanding and agreement between the parties with regard to the
subjects hereof and thereof any and all other written or oral agreements relating to the subject
matter hereof existing among any of the parties hereto are expressly canceled. Upon the execution
and delivery of this Agreement by the Company and the Holders of at least two-thirds of the
Preferred Stock held by the Investors who are parties to the Prior Rights Agreement, the Prior
Rights Agreement shall thereafter be of no further force and effect and is hereby amended and
restated herein.

[Signature Pages Follow]

 - 21 - 

 

     IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Investors’
Rights Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Orexigen Therapeutics, Inc.,	 	 
	 

	 	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary D. Tollefson M.D., Ph.D.	 	 
	 

	 	 	 	 

Gary D. Tollefson, M.D., Ph.D.
	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	INVESTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	BAVP VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	BA Venture Partners VII, LLC,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lou C. Bock	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:	 	 
	 	 	Managing Director	 	 
	 	 	Lou C. Bock	 	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	INVESTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	Domain Partners V, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	One Palmer Square Associates V, L.L.C.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                     /s/ Kathleen K. Schoemaker
 	 
	 	 	Kathleen K. Schoemaker, 	 
	 	 	Managing Member 	 
	 

	 	 	 	 	 	 	 
	 	 	DP V Associates, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	One Palmer Square Associates V, L.L.C.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                     /s/ Kathleen K. Schoemaker
 	 
	 	 	Kathleen K. Schoemaker, 	 
	 	 	Managing Member 	 
	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 - 2 - 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Second Amended and
Restated Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 
	 	 	INVESTORS:
	 
	 	 	 	 
	 	 	Sofinnova Venture Partners VI, L.P.

as nominee for

Sofinnova Venture Partners VI, L.P.

Sofinnova Venture Partners VI GmbH & Co. K.G.
	 
	 	 	 	 
	 

	 	By: Sofinnova Management VI, L.L.C.
	 

	 	 	 	its General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ Michael Powell
 	 
	 	 	Managing Member 	 
	 	 	 	 
	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     In Witness Whereof, the parties hereto have executed this Second Amended and
Restated Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 
	 	INVESTORS:

KPCB Holdings, Inc.,

as nominee

 	 
	 	By:  	/s/ Joseph S. Lacob
 	 
	 	 	Title: Senior Vice President 	 
	 	 	 	 
	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     In Witness Whereof, the parties hereto have executed this Second Amended and
Restated Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	INVESTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	MONTREUX EQUITY PARTNERS II SBIC, LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: Montreux Equity Management II SBIC, LLC, its

General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel K. Turner	 	 
	 

	 	Name:
	 	 

Daniel K. Turner, III
	 	 
	 
	 

	 	Title:
	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	MONTREUX EQUITY PARTNERS III SBIC, LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: Montreux Equity Management III SBIC, LLC, its

General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel K. Turner	 	 
	 

	 	Name:
	 	 

Daniel K. Turner, III
	 	 
	 
	 

	 	Title:
	 	Managing Member	 	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     In Witness Whereof, the parties hereto have executed this Second Amended and
Restated Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	INVESTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	NIF VENTURES CO., LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tamiaki Hio	 	 
	 

	 	 	 	 

Tamiaki Hio,
	 	 
	 

	 	 	 	Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	VENTURE CAPITAL
INVESTMENT LIMITED 
PARTNERSHIP NIF JAPAN-USA-EUROPE BRIDGE FUND	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Shinichiro Hakuta	 	 
	 

	 	 	 	 

Shinichiro Hakuta,
	 	 
	 

	 	 	 	General Manager	 	 
	 
	 	 	 	 	 	 
	 	 	VENTURE CAPITAL INVESTMENT LIMITED 

PARTNERSHIP NIF GLOBAL FUND	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Shinichiro Hakuta	 	 
	 

	 	 	 	 

Shinichiro Hakuta,
	 	 
	 

	 	 	 	General Manager	 	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     In Witness Whereof, the parties hereto have executed this Second Amended and
Restated Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	INVESTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	MORGENTHALER PARTNERS VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Morgenthaler Management Partners VII, LLC,	 	 
	 

	 	 	 	its Managing Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Theodore A. Laufik	 	 
	 

	 	 	 	 

Theodore A. Laufik
	 	 
	 

	 	 	 	Partner and Managing Member	 	 

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     In Witness Whereof, the parties hereto have executed this Second Amended and
Restated Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 
	 	 	INVESTORS:
	 
	 	 	 	 
	 	 	CROSS CREEK CAPITAL, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.

Its Sole General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC
Its Sole General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.
Its Sole Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker
	 

	 	 	 	 
 Name:
Karey Barker
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	CROSS CREEK CAPITAL EMPLOYEES’ FUND, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.

Its Sole General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC

Its Sole General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.

Its Sole Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker
	 

	 	 	 	 
 Name:
Karey Barker
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	WASATCH FUNDS, INC.

Wasatch Small Cap Growth Fund
	 
	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.
	 

	 	Its:
	 	Investment Adviser
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jeff Cardon
	 

	 	 	 	 
 Name:
Jeff Cardon
	 

	 	 	 	Title: Vice President

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

     In Witness Whereof, the parties hereto have executed this Second Amended
and Restated Investors’ Rights Agreement as of the date first above written.

	 	 	 	 	 
	 	 	INVESTORS:
	 
	 	 	 	 
	 	 	MPM BIOEQUITIES MASTER FUND, LP
	 
	 	 	 	 
	 

	 	By:
	 	MPM BioEquities
GP, L.P., its General Partner
	 

	 	By:
	 	MPM BioEquities LLC, its General Partner
	 
	 

	 	By:
	 	/s/ Kurt Von Emster
	 

	 	 	 	 
 
	 	 	Name: Kurt von Emster
	 	 	Title: Manager

[Signature Page to Second Amended and Restated Investors’ Rights Agreement]

 

 

SCHEDULE A

LIST OF INVESTORS

Name of Investor

BAVP VII, L.P.

Domain Partners V, L.P.

DP V Associates, L.P.

KPCB Holdings, Inc.

Sofinnova Venture Partners VI, L.P.

Montreux Equity Partners II, SBIC, LP

Montreux Equity Partners III, SBIC, LP

NIF Ventures Co., Ltd.

Venture Capital Investment Limited Partnership NIF Japan-USA-Europe Bridge Fund

Venture Capital Investment Limited Partnership NIF Global Fund

Morgenthaler Partners VII, L.P.

Cross Creek Capital, L.P.

Cross Creek Capital Employees’ Fund, L.P.

Wasatch Small Cap Growth Fund

MPM BioEquities Master Fund, LP

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