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Exhibit 4.02    
    

OMNEON VIDEO NETWORKS, INC.

FOURTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

March 26, 2004  

   TABLE OF CONTENTS  

	 
	 	 
	 	Page

	SECTION 1. Restrictions on Transferability; Registration Rights	 	2
	1.1.	 	Certain Definitions	 	2
	1.2.	 	Restrictions	 	3
	1.3.	 	Restrictive Legend	 	3
	1.4.	 	Notice of Proposed Transfers	 	4
	1.5.	 	Requested Registration	 	4
	1.6.	 	Company Registration	 	6
	1.7.	 	Registration on Form S-3	 	7
	1.8.	 	Limitations on Subsequent Registration Rights	 	9
	1.9.	 	Expenses of Registration	 	9
	1.10.	 	Registration Procedures	 	9
	1.11.	 	Indemnification	 	10
	1.12.	 	Information by Holder	 	12
	1.13.	 	Rule 144 Reporting	 	12
	1.14.	 	Transfer of Registration Rights	 	13
	1.15.	 	Standoff Agreement	 	13
	1.16.	 	Termination of Rights	 	13
	

SECTION 2. Right of First Offer	
 	

14
	2.1.	 	Right of First Offer	 	14
	2.2.	 	Termination of Right of First Offer	 	16
	

SECTION 3. Affirmative Covenants of the Company	
 	

16
	3.1.	 	Financial Information	 	16
	3.2.	 	Operating Plan and Budget	 	17
	3.3.	 	Inspection	 	17
	3.4.	 	Assignment of Rights to Financial Information	 	18
	3.5.	 	Termination of Covenants	 	18
	3.6.	 	Delivery of Qualified Small Business Stock Representations	 	18
	3.7.	 	Definition of Investor	 	18
	3.8.	 	Certain Covenants Relating to SBA Matters	 	18
	

SECTION 4. Miscellaneous	
 	

19
	4.1.	 	Assignment	 	19
	4.2.	 	Third Parties	 	19
	4.3.	 	Governing Law	 	19
	4.4.	 	Aggregation of Shares	 	19
	4.5.	 	Counterparts	 	19
	4.6.	 	Notices	 	19
	4.7.	 	Severability	 	19
	4.8.	 	Amendment and Waiver	 	20
	4.9.	 	Rights of Parties	 	20
	4.10.	 	Delays or Omissions	 	20
	4.11.	 	Entire Agreement; Effect on Prior Rights Agreement; Attorneys' Fees; Waiver of Rights	 	20
	4.12.	 	Specific Performance	 	21

i

 
EXHIBITS  

Exhibit A    Certificate
of Representations Regarding Qualified Small Business Stock 

ii

  

 
 

FOURTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT    
    

        THIS FOURTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this "Agreement") is entered into as of the 26th day
of March 2004 ("Effective Date"), by and among (i) OMNEON VIDEO NETWORKS, INC., a Delaware corporation (the
"Company"), (ii) Donald M. Craig, Michael M. Gilbert, Edward P. Hobson, II and Lawrence R. Kaplan (each a
"Founder" and collectively the "Founders"), (iii) Comerica Bank (f/k/a Imperial Bank)
("Comerica"), as the holder of a warrant to purchase Common Stock, (iv) holders of outstanding shares of the Company's
Series A-1 Preferred Stock (the "Series A-1 Holders") acquired pursuant to the Company's
Series A-1, Series A-2.1 and Series A-2.2 Preferred Stock Purchase Agreement dated October 29, 2002 (the
"Series A Stock Purchase Agreement"), (v) the Former Preferred Holders (as defined below), (vi) holders of outstanding shares of
the Company's Series A-2.1 Preferred Stock (the "Series A-2.1 Holders") acquired pursuant to the Series A
Stock Purchase Agreement and the Company's Loan Restructuring Agreement dated October 29, 2002 with Lighthouse Capital Partners II, L.P. and Lighthouse Capital Partners III, L.P.,
(vii) purchasers of the Company's Series B-1 Preferred Stock ("Series B-1 Investors") pursuant to the
Company's Series B-1 Preferred Stock Purchase Agreement dated March 26, 2004 (the "Stock Purchase Agreement"), and
(viii) BMC Software, Inc. ("BMC" and together with the Series B-1 Investors, the Series A-1 Holders
and the Series A-2.1 Holders, the "Investors"), as the holder of a warrant to purchase Series A-6 Preferred Stock. 

 
 

RECITALS    
    

        A.    Certain
stockholders of the Company (collectively, the "Former Preferred Holders") held shares of the Company's
Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, which they acquired pursuant to the Company's Series A Preferred Stock Purchase Agreement
dated May 22, 1998, Series B Preferred Stock Purchase Agreement dated June 30, 1999, and Series C Preferred Stock Purchase Agreement dated October 10, 2000,
respectively. 

        B.    Such
Former Preferred Holders had such shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock (the
"Former Preferred Stock") converted into shares of Common Stock, Series A-3 Preferred Stock, Series A-4 Preferred
Stock and/or Series A-5 Preferred Stock of the Company pursuant to the Company's certificate of incorporation, as amended and restated on October 28, 2002 in connection with
the Company's sale of shares of its Series A-1 Preferred Stock pursuant to the Series A Stock Purchase Agreement. 

        C.    The
Company shall as of the Effective Date sell to certain entities and individuals shares of the Company's Series B-1 Preferred Stock, and execution
of this Agreement is a condition precedent to the purchase and sale of such Series B-1 Preferred Stock. 

        D.    The
Founders, Comerica, the Series A-1 Holders, the Series A-2.1 Holders, the Former Preferred Holders, and BMC are parties to the
Company's Third Amended and Restated Investor Rights Agreement dated as of October 29, 2002 (the "Prior Rights Agreement"), pursuant to which
such parties were granted certain rights. 

        E.    Those
Former Preferred Holders who acquired Series A-1 Preferred Stock pursuant to the Series A-1 Stock Purchase Agreement,
continued as parties to the Prior Rights Agreement, and, as such, have the right to enter into this Agreement. 

        F.     The
Company and Series B-1 Investors have requested and the holders of a majority of the aggregate outstanding Registrable Securities (as defined in
the Prior Rights Agreement) held by the Investors (as defined in the Prior Rights Agreement) and of a majority of the aggregate outstanding Shares (as defined in the Prior Rights Agreement) held by
the Founders (such holders, the "Amending Parties") have agreed, pursuant to Section 4.8 of the
Prior Rights Agreement, to amend and restate in its entirety the Prior Rights Agreement in the manner set forth herein. 

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        G.    The
Company and Comerica are parties to that certain Amended and Restated Loan Agreement dated January 28, 2000 pursuant to which Comerica was granted a warrant to
purchase 6,875 shares of Common Stock (the "Comerica Shares"), which shares have registration rights contained in  Section 1.6 herein. Comerica
is a party to this Agreement for purposes of Sections 1 (with the
exception of Sections 1.5 and 1.7) and 4 only. The
Founders are parties to this Agreement for purposes of Sections 1 and 4 only. 

        NOW,
THEREFORE, the parties agree as follows: 

 
 

SECTION 1.    

 
  Restrictions on Transferability; Registration Rights    
    

        1.1.    Certain Definitions.    As used in this Agreement, the following terms shall have the following respective
meanings: 

        "Commission" shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act. 

        "Common Stock" shall mean the Company's common stock, par value $0.001 per share. 

        "Conversion Shares" shall mean the Common Stock issued or issuable upon conversion of the Former Preferred Stock, the
Series B-1 Preferred Stock and the Company's Series A-1 Preferred Stock, Series A-2.1 Preferred Stock, Series A-3 Preferred
Stock, Series A-4 Preferred Stock, Series A-5 Preferred Stock and Series A-6 Preferred Stock. 

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute, and the rules and
regulations thereunder, all as the same shall be in effect from time to time. 

        "Holder" shall mean (i) any Founder, Former Preferred Holder or Investor holding Registrable Securities and (ii) any person
holding Registrable Securities to whom the rights under this Agreement have been transferred in accordance with Section 1.14 hereof, provided,
however, that for purposes of this Agreement, a record holder of shares of Preferred Stock (or warrants to purchase Preferred Stock) of the Company that is convertible into such Registrable Securities
shall be deemed to be the Holder of such Registrable Securities; and provided, further, that the Company shall in no event be obligated to register shares of Preferred Stock or warrants of the
Company, and that Holders of Registrable Securities will not be required to exercise their warrants or convert their shares of Preferred Stock into Common Stock in order to exercise the registration
rights granted hereunder, until immediately before
the closing of the offering to which the registration relates. "Holder" shall also mean Comerica except with respect to Sections 1.5 and  1.7 hereof.

        "Initiating Holders" shall mean (i) any Investors (or transferees of Investors under  Section 1.14 hereof) who in the aggregate are Holders of not less than
twenty percent (20%) of the Registrable Securities then held (or deemed
held) by all Investors (or transferees of Investors under Section 1.14 hereof) and (ii) who propose to register securities the aggregate
offering price of which, net of underwriting discounts and commissions, exceeds $10,000,000. 

        The
terms "register", "registered" and
"registration" refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the
declaration or ordering of the effectiveness of such registration statement. 

        "Registrable Securities" shall mean (i) Common Stock held by the Founders free of any right of repurchase in favor of the Company,
(ii) the Conversion Shares, (iii) any Common Stock of the Company issued or issuable in respect of the Conversion Shares upon any stock split, stock dividend, recapitalization, or
similar event, or any Common Stock otherwise issued or issuable with respect to the 

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Conversion
Shares and (iv) the Comerica Shares for the purposes of Section 1, with the exception of Sections
1.5 and 1.7, only; provided, however, that shares of Common Stock or other
securities shall only be treated as Registrable Securities if and so long as they have not been (A) sold to or through a broker or dealer or underwriter in a public distribution or a public
securities transaction, (B) sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof so that all transfer
restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale, or (C) transferred in a transaction pursuant to which the registration rights are not
also assigned in accordance with Section 1.14 hereof. 

        "Registration Expenses" shall mean all expenses incurred by the Company in complying with Sections
1.5, 1.6 and 1.7 hereof, including, without limitation, all registration,
qualification, listing and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and the expense of any special audits incident to
or required by any such registration (but excluding the compensation of regular employees of the Company which shall be paid in any event by the Company) and excluding the Selling Expenses. 

        "Restricted Securities" shall mean the securities of the Company required to bear the legend set forth in  Section 1.3(a) hereof. 

        "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder or any similar
federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 

        "Selling Expenses" shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the securities
registered by the Holders and all fees and disbursements of counsel for the Holders (other than as specified in Section 1.9). 

        "Shares" shall mean any shares of capital stock of the Company or any securities of the Company convertible into or exchangeable for such
capital stock held by any Founder, Investor or Comerica as of the date of this Agreement. 

        1.2.    Restrictions.    None of the Founders, Investors, Former Preferred Holders and Comerica shall sell, assign,
transfer or pledge any Shares except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act. Each Founder,
Investor and Former Preferred Holder and Comerica will cause any proposed purchaser, assignee, transferee or pledgee of any Shares held by such Founder, Investor, Former Preferred Holder or Comerica
to agree to take and hold such Shares subject to the provisions and upon the conditions specified in this Agreement. 

        1.3.    Restrictive Legend.    Each certificate representing the Shares held by the Founders, Investors, Former
Preferred Holders and Comerica and any other securities issued in respect of such Shares upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless
otherwise permitted by the provisions of Section 1.4 below) be stamped or otherwise imprinted with legends in substantially the following form (in addition to any legend required under
applicable state securities laws): 

	(a)
	"THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD,
TRANSFERRED OR PLEDGED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL (WHICH MAY BE COUNSEL FOR THE COMPANY) STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM
THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT." 

3

 

	(b)
	"THE
SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF ONE OR MORE AGREEMENTS BETWEEN THE COMPANY AND THE STOCKHOLDER, COPIES OF WHICH ARE
ON FILE WITH THE SECRETARY OF THE COMPANY." 

        Each
Founder, Investor and Former Preferred Holder and Comerica consents to the Company making a notation on its records and giving instructions to any transfer agent of the Restricted
Securities in order to implement the restrictions on transfer established in this Section 1. 

        1.4.    Notice of Proposed Transfers.    The holder of each certificate representing Restricted Securities, by
acceptance thereof, agrees to comply in all respects with the provisions of this Section 1. Prior to any proposed sale, assignment, transfer or pledge of any Restricted Securities, unless there
is in effect a registration statement under the Securities Act covering the proposed transfer, the holder thereof shall give written notice to the Company of such holder's intention to effect such
transfer, sale, assignment or pledge. Each such notice shall describe the manner and circumstances of the proposed transfer, sale, assignment or pledge in sufficient detail, and if reasonably
requested by the Company shall be accompanied at such holder's expense by either (i) an unqualified written opinion of legal counsel who shall, and whose legal opinion shall, be satisfactory to
the Company, addressed to the Company to the effect that the proposed transfer of the Restricted Securities may be effected without registration under the Securities Act, or (ii) a "no action"
letter from the Commission to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the Commission that action be taken with respect
thereto, or (iii) any other evidence satisfactory to counsel to the Company, whereupon the holder of such Restricted Securities shall be entitled to transfer such Restricted Securities in
accordance with the terms of the notice delivered by the holder to the Company. The Company will not require such a legal opinion, "no action" letter or other evidence satisfactory to counsel to the
Company (a) in any transaction in compliance with Rule 144 under the Securities Act ("Rule 144"), (b) in any transaction in
which an Investor which is a corporation distributes Restricted Securities solely to its majority owned subsidiaries or affiliates for no consideration, or (c) in any transaction in which an
Investor which is a partnership or limited liability company distributes Restricted Securities solely to partners, affiliates (as defined in the Securities Act) or members thereof for no
consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 1.4. Each certificate evidencing the Restricted Securities transferred as above
provided shall bear, except if such transfer is made pursuant to Rule 144, the restrictive legends set forth in Section 1.3 above, except that such certificate shall not bear the
restrictive legend set forth in Section 1.3(a) above if, in the opinion of counsel for such holder and the Company, such legend is not required in order to establish compliance with any
provisions of the Securities Act. In either such case, the Company shall be obligated to reissue promptly legended or unlegended certificates at the request of any holder thereof. 

        1.5.    Requested Registration.    

        (a)    Request for Registration.    If the Company shall receive from the Initiating Holders a written request with
respect to the Registrable Securities held by such Initiating Holders that the Company effect any registration, qualification or compliance, the Company will: 

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

         (ii)  as
soon as practicable thereafter, use its best efforts to effect such registration, qualification or compliance (including, without limitation, the execution of an
undertaking to file post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws and appropriate compliance with applicable regulations
issued under the Securities Act and any other governmental requirements or regulations) as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of
such Registrable 

4

 

Securities
as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders joining in such request as are specified in a written request
received by the Company within thirty (30) days after the deemed receipt of such written notice from the Company; provided,  however, that the Company
shall not be obligated to take any action to effect any such registration, qualification or compliance pursuant to this  Section 1.5: 

	(1)
	In
any particular jurisdiction in which the Company would be required 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 Securities Act;

	(2)
	Prior
to the earlier of (A) six (6) months following the effective date of the first public offering of the Common Stock of the Company to the general public which is
effected pursuant to a registration statement filed with, and declared effective by, the Commission under the Securities Act (the "IPO") or
(B) three (3) years following the closing of the sale and issuance of the Series B-1 Preferred Stock pursuant to the Series B-1 Purchase Agreement;

	(3)
	During
the period starting with the date sixty (60) days prior to the Company's estimated date of filing of, and ending on the later of (A) six months from the date
sixty (60) days prior to the Company's estimated date of filing of any registration statement pertaining to securities of the Company (other than a registration of securities in a
Rule 145 transaction or with respect to an employee benefit plan), provided that the registration statement has not become effective during such time period or (B) the date six
(6) months immediately following the effective date of, any registration statement pertaining to securities of the Company (other than a registration of securities in a Rule 145
transaction or with respect to an employee benefit plan), provided in the case of clauses (A) or (B) that the Company is actively employing in good faith all reasonable efforts to cause
such registration statement to become effective and that the Company's estimate of the date of filing such registration statement is made in good faith;

	(4)
	After
the Company has effected two (2) such registrations pursuant to this subparagraph 1.5(a), such registrations having been declared or ordered effective and the securities
offered pursuant to such registrations having been sold; or

	(5)
	If
the Company shall furnish to such Holders a certificate, signed by the President or Chief Executive Officer of the Company, stating that in the good faith judgment of the board of
directors of the Company (the "Board of Directors") it would be seriously detrimental to the Company or its stockholders for a registration statement to
be filed in the near future, then the Company's obligation to use its best efforts to register, qualify or comply under this Section 1.5 shall be
deferred for a period not to exceed one-hundred and twenty (120) days from the date of receipt of written request from the Initiating Holders;  provided, however, that the Company may not utilize this right more than once in any twelve
(12) month period; provided further that the Company shall not register any securities for the account of itself or any other stockholder during
such one hundred twenty (120) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate
reorganization or transaction under Rule 145 of the Act, a registration on any form that 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 a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities
that are also being registered). 

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        Subject
to the foregoing clauses (1) through (5), the Company shall file a registration statement covering the Registrable Securities so requested to be registered as soon
as practicable after receipt of the request or requests of the Initiating Holders. 

        (b)    Underwriting.    In the event that a registration pursuant to  Section 1.5 is for a registered public offering involving
an underwriting, the Company shall so advise the Holders as part of the notice given
pursuant to Section 1.5(a)(i). The right of any Holder to registration pursuant to  Section 1.5 shall be conditioned upon such Holder's
participation in the underwriting arrangements required by this  Section 1.5 and the inclusion of such Holder's Registrable Securities in the underwriting, to the extent requested, to the extent
provided
herein. 

        The
Company shall (together with all Holders proposing to distribute their securities through such underwriting) enter into and perform its obligations under an underwriting agreement in
customary form with the managing underwriter selected for such underwriting by the Company (which managing underwriter shall be reasonably acceptable to the Holders of a majority of the Registrable
Securities to be registered). Notwithstanding any other provision of this Section 1.5, if the managing underwriter advises the Initiating Holders
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 and the number of shares of Registrable Securities that may be included in the registration and underwriting shall
be allocated among all Holders desiring to participate in such registration and underwriting in proportion, as nearly as practicable, to the respective amounts of Registrable Securities held by all
such Holders at the time of filing the registration statement; provided, however, that the number of
shares of Registrable Securities to be included in such underwriting and registration shall not be reduced unless all other securities to be registered by the Company for its own account or by any
other holders of the Company's securities are first entirely excluded from the underwriting and registration. No Registrable Securities excluded from the underwriting by reason of the underwriter's
marketing limitation shall be included in such registration. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of
shares allocated to any Holder to the nearest 100 shares. The Company may include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting
involved therein, (i) authorized but unissued shares of Common Stock or shares of Common Stock held by the Company or (ii) shares of Common Stock held by holders other than the Holders
of Registrable Securities but only to the extent that such inclusion of securities in Sections 1.5(b)(i) and  (ii) will not diminish the number of
securities included by the Holders of Registrable Securities who have requested their securities to be included in
such registration. 

        If
any Holder of Registrable Securities disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written notice to the Company, the managing
underwriter and the Initiating Holders. The Registrable Securities and/or other securities so withdrawn shall also be withdrawn from registration, and such Registrable Securities shall not be
transferred in a public distribution prior to ninety (90) days after the effective date of such registration. 

        1.6.    Company Registration.    

        (a)   Notice of Registration. If at any time or from time to time, the Company shall determine to register any of its
securities, either for its own account or the account of a security holder or holders other than (i) a registration relating solely to employee benefit plans, (ii) a registration
relating solely to a Commission Rule 145 transaction, or (iii) a registration on any registration form that does not permit secondary sales, the Company will: 

          (i)  promptly
give to each Holder written notice thereof; and 

         (ii)  include
in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Registrable
Securities 

6

 

specified
in a written request or requests made within fifteen (15) days after the deemed receipt of such written notice from the Company by any Holder, but only to the extent set forth in  Section 1.6(b) herein. 

        (b)   Underwriting. If the registration of which the Company gives notice is for a registered public offering involving an
underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section 1.6(a)(i). In such event, the
right of any Holder to registration pursuant to Section 1.6 shall be conditioned upon such Holder's participation in such underwriting and the
inclusion of Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company
and the other holders distributing their securities through such underwriting) enter into and perform their obligations under an underwriting agreement in customary form with the managing underwriter
selected for such underwriting by the Company. Notwithstanding any other provision of this Section 1.6, if the managing underwriter determines
that marketing factors require a limitation of the number of shares to be underwritten, the managing underwriter may limit the number of Registrable Securities to be included in the registration and
underwriting on a pro rata basis based on the total number of securities (including, without limitation, Registrable Securities) entitled to
registration pursuant to registration rights granted to the participating Holders by the Company; provided, that, (i) with respect to the IPO,
the managing underwriter may exclude all of such Registrable Securities and (ii) with respect to any registration following the IPO, the managing underwriter may exclude only such number of
Registrable Securities as would provide the Holders requesting registration with at least thirty percent (30%) of the total number of shares to be registered and sold pursuant to such registration;  provided
further that (X) in no event shall any Registrable Securities be excluded from such offering unless all other shareholders' securities
are first excluded and (Y) any Registrable Securities held by a Founder shall be excluded before any other Registrable Securities are excluded. To facilitate the allocation of shares in
accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder or other holder to the nearest 100 shares. For purposes of the preceding
sentence concerning apportionment, for any selling stockholder that is a Holder of Registrable Securities and that is a venture capital fund, partnership or corporation, the affiliated venture capital
funds, partners, retired partners and stockholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing
persons shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the
aggregate amount of Registrable Securities owned by all such related entities and individuals. 

If
any Holder or other holder disapproves of the terms of any such underwriting, he or she may elect to withdraw therefrom by written notice to the Company and the managing underwriter. Any securities
excluded or withdrawn from such underwriting shall be withdrawn from such registration, and shall not be transferred in a public distribution prior to ninety (90) days after the effective date
of the registration statement relating thereto. 

        (c)   Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by
it under this Section 1.6 prior to the effectiveness of such registration, whether or not any Holder has elected to include Registrable
Securities in such registration. The expenses of such withdrawn registration shall be born by the Company in accordance with Section 1.9 hereof. 

        1.7.    Registration on Form S-3.    

        (a)   The
Company shall use its best efforts to qualify for registration on Form S-3 or any comparable or successor form. To that end the Company shall
register (whether or not required by law to do so) its Common Stock under the Exchange Act in accordance with the provisions of the 

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Exchange
Act following the effective date of the first registration of any securities of the Company on Form S-1 or any comparable or successor form or forms. 

        (b)   If,
at any time after the Company is entitled to use Form S-3 (or any successor form to Form S-3) for a public offering of
Registrable Securities, any Holder or Holders request that the Company file a registration statement on Form S-3, the reasonably anticipated aggregate price to the public of
which, net of underwriting discounts and commissions, would exceed $500,000, the Company shall use its best efforts to cause such Registrable Securities to be registered for the offering on such form.
The Company will (i) promptly give written notice of the proposed registration to all other Holders, and (ii) as soon as practicable, use its best efforts to effect such registration
(including, without limitation, the execution of an undertaking to file post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws and
appropriate compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as may be so requested and as would permit or facilitate the
sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders
joining in such request as are specified in a written request received by the Company within thirty (30) days after the deemed receipt of the written notice from the Company referred in the
preceding clause (i). The applicable substantive provisions of Section 1.5(b) shall be applicable to each registration initiated under
this Section 1.7. 

        (c)   Notwithstanding
the foregoing, the Company shall not be obligated to take any action pursuant to this Section 1.7:
(i) in any particular jurisdiction in which the Company would be required 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 Securities Act; (ii) during the period starting with the date sixty (60) days prior to
the filing of, and ending on the later of (x) six months from the date sixty (60) days prior to the Company's estimated date of filing of any registration statement pertaining to
securities of the Company (other than a registration of securities in a Rule 145 transaction or with respect to an employee benefit plan), provided that the registration statement has not
become effective during such time period, or (y) a date six (6) months following the effective date of any registration statement (other than with respect to a registration statement
relating to a Rule 145 transaction, an offering solely to employees or any other registration which is not appropriate for the registration of Registrable Securities), provided in the case of
clauses (A) or (B) that the Company is actively employing in good faith all reasonable efforts to cause such registration statement to become effective; or (iii) if the Company
shall furnish to such Holder a certificate signed by the President or Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of Directors, it would be seriously
detrimental to the Company or its stockholders for registration statements to be filed in the near future, then the Company's obligation to use its best efforts to file a registration statement
shall be deferred for a period not to exceed one-hundred twenty (120) days from the receipt of the request to file such registration by such Holder or Holders;  provided, however, that the Company may not utilize this right more than once in any twelve
(12) month period; and provided further that the Company shall not register any securities for the account of itself or any other stockholder
during such one hundred twenty (120) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a
corporate reorganization or transaction under Rule 145 of the Act, a registration on any form that 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 a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities
that are also being registered). 

8

 

        (d)   Registrations
effected pursuant to this Section 1.7 shall not be counted as a request for registration pursuant to  Section 1.5. 

        1.8.    Limitations on Subsequent Registration Rights.    From and after the date hereof, the Company shall not,
without the prior written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement granting any holder or prospective holder of any securities of
the Company registration rights with respect to such securities unless such new registration rights, including standoff obligations, are on a pari passu
basis or are subordinate to the registration rights granted to the Holders hereunder. 

        1.9.    Expenses of Registration.    All Registration Expenses incurred in connection with any registration pursuant
to Sections 1.5, 1.6 and 1.7 and the reasonable cost of one special legal counsel to represent all of the Holders together in any such registration shall be borne by the Company, provided that the
Company shall not be required to pay the Registration Expenses of any registration proceeding begun
pursuant to Section 1.5, the request of which has been subsequently withdrawn by the Initiating Holders, unless the withdrawal is based upon material adverse information concerning the Company
of which the Initiating Holders were not aware at the time of such request, in which case the Company shall pay all Registration Expenses. In such case, (i) the Holders of Registrable
Securities to have been registered shall bear all such Registration Expenses pro rata on the basis of the number of shares to have been registered, and (ii) the Company shall be deemed not to
have effected a registration pursuant to subparagraph 1.5(a) of this Agreement. Unless otherwise agreed, all Selling Expenses relating to securities registered on behalf of the Holders shall be borne
by the Holders of the registered securities included in such registration pro rata on the basis of the number of shares so registered. 

        1.10.    Registration Procedures.    In the case of each registration, qualification or compliance effected by the
Company pursuant to this Section 1, the Company will keep each Holder advised in writing as to the initiation of each registration, qualification and compliance and as to the completion thereof
and, at its expense, the Company will: 

        (a)   Prepare
and file with the Commission a registration statement with respect to such securities and use its best efforts to cause such registration statement to become and
remain effective for at least ninety (90) days or until the distribution described in the registration statement has been completed; provided,  however,
 that in the case of any registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous
or delayed basis, such period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold, provided that if Rule 415, or any
successor rule under the Securities Act, permits an offering on a continuous or delayed basis, and provided further that if applicable rules under the Securities Act governing the obligation to
file a post-effective amendment permit, in lieu of filing a post-effective amendment which (y) includes any prospectus required by Section 10(a)(3) of the
Securities Act or (z) reflects facts or events representing a material or fundamental change in the information set forth in the registration statement, the incorporation by reference of
information required to be included in (y) and (z) above shall be contained in periodic reports filed pursuant to Section 13 or 15(d) of the Exchange Act in the registration
statement; 

        (b)   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; 

        (c)   Furnish
to the Holders participating in such registration and to the underwriters of the securities being registered such reasonable number of copies of the registration
statement, preliminary prospectus, final prospectus and such other documents as such underwriters may reasonably request in order to facilitate the public offering of such securities; 

9

 

        (d)   Prepare
and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration
statements as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement; 

        (e)   Notify
each seller of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the
Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing, and at the request of any
such seller, prepare and furnish to such seller a reasonable number of copies of 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 shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading or incomplete in light of the circumstances then existing; 

        (f)    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; 

        (g)   Cause
all such Registrable Securities to be listed on each securities exchange or trading system on which similar securities issued by the Company are then listed; 

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

        (i)    Make
available for inspection by any Holder participating in such registration, any underwriter participating in any disposition pursuant to such registration, and any
attorney or accountant retained by any such Holder or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company's officers and
directors to supply all information reasonably requested by any such Holder, underwriter, attorney or accountant in connection with such registration statement; provided, however, that such Holder,
underwriter, attorney or accountant shall agree in writing to hold in confidence and trust all non-public information so provided. 

        1.11.    Indemnification.    

        (a)   The
Company will indemnify each Holder, each of its officers and directors and partners, and each person controlling such Holder within the meaning of Section 15
of the Securities Act, with respect to which registration, qualification or compliance has been effected pursuant to this Section 1, and each
underwriter, if any, and each person who controls any underwriter within the meaning of Section 15 of the Securities Act, against all expenses, claims, losses, damages or liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus, offering circular or
other document, or any amendment or supplement thereto, incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of any rule or
regulation promulgated under the Securities Act or any state securities laws, rules or regulations applicable to the Company in connection with any such registration, qualification or compliance, and
the Company will reimburse each such Holder, each of its 

10

 

officers,
directors and partners, and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, as such expenses are incurred, provided that the Company will not be liable in any
such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission, made in reliance
upon and in conformity with written information furnished to the Company by an instrument duly executed by such Holder, controlling person or underwriter and stated to be specifically for use therein. 

        (b)   Each
Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or compliance is being
effected, indemnify the Company, each of its directors and officers, each underwriter, if any, of the Company's securities covered by such a registration statement, each person who controls the
Company or such underwriter within the meaning of Section 15 of the Securities Act, and each other such Holder, each of its officers, directors and partners and each person controlling such
Holder within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company, such Holders, such directors, partners, officers,
persons, underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, as
such expenses are incurred, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration
statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by an instrument duly executed by such Holder and stated
to be specifically for use therein; provided that in no event shall any indemnity under this subparagraph 1.11(b) exceed the net proceeds received by such Holder in such registration. 

        (c)   Each
party entitled to indemnification under this Section 1.11 (the "Indemnified
Party") shall give notice to the party required to provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting
therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld), and the Indemnified Party may participate in such defense at such party's expense; 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 of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this
Section 1.11 unless the failure to give such notice is materially prejudicial to an Indemnifying Party's ability to defend such action (and then only to the extent of such prejudice). 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. 

11

 

        (d)   If
the indemnification provided for in this Section 1.11 is held by a court of competent jurisdiction to be
unavailable to an Indemnified Party with respect to any claim, loss, damage, liability or action referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party
hereunder, shall contribute to the amount paid or payable to such Indemnified Party as a result of such claim, loss, damage, liability or action in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party on the one hand and the Indemnified Party on the other in connection with the actions that resulted in such claims, loss, damage, liability or action, as well
as any other relevant equitable considerations. 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 related to information supplied by the Indemnifying Party or by the Indemnified Party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission, provided that in no event shall any contribution by a Holder under this  Section 1.11(d) exceed the net proceeds received by such Holder in such registration. The Company and the Holders agree that it would not be just
and equitable if contribution pursuant to this Section 1.11(d) were based solely upon the number of entities from whom contribution was requested
or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 1.11(d). 

        (e)   The
amount paid or payable to an Indemnified Party as a result of the losses, claims, damages and liabilities referred to above in this  Section 1.11 shall be deemed to include any legal or other
expenses reasonably incurred by such Indemnified Party in connection with
investigating or defending any such action or claim, subject to the provisions of Section 1.11 hereof. Notwithstanding the provisions of this  Section 1.11, no Holder shall be required to contribute any amount or make any other payments under this Agreement which in the aggregate exceed
the net proceeds (after selling expenses) received by such Holder. No person guilty of fraudulent misrepresentation (within the meaning of the Securities
Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

        (f)    The
obligations of the Company and any Holders under this Section 1.11 shall survive the completion of any
offering of Registrable Securities in a registration statement under this Section 1. 

        1.12.    Information by Holder.    The Holder or Holders of Registrable Securities included in any registration shall
furnish to the Company such information regarding such Holder or Holders, the Registrable Securities held by them and the distribution proposed by such Holder or Holders as the Company may reasonably
request in writing and as shall be required in connection with any registration, qualification or compliance referred to in this Section 1. 

        1.13.    Rule 144 Reporting.    With a view to making available the benefits of certain rules and regulations
of the Commission which may at any time permit the sale of the Restricted Securities to the public without registration or pursuant to Form S-3, after such time as a public market
exists for the Common Stock of the Company, the Company agrees to: 

        (a)   Make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the effective date
that the Company becomes subject to the reporting requirements of the Securities Act or the Exchange Act; 

        (b)   File
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it
has become subject to such reporting requirements); and 

        (c)   So
long as a Holder owns any Restricted Securities, to furnish to such Holder forthwith upon request a written statement by the Company as to its compliance with the
reporting 

12

 

requirements
of said Rule 144 (at any time after ninety (90) days after the effective date of the first registration statement filed by the Company for an offering of its securities to
the general public), and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements) or that it qualifies as a registrant whose securities may
be resold pursuant to Form S-3 (at any time it so qualifies), a copy of the most recent annual or quarterly report of the Company, and such other reports and documents of the
Company and other information in the possession of or reasonably obtainable by the Company as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a
Holder to sell any such securities without registration or pursuant to such Form S-3. 

        1.14.    Transfer of Registration Rights.    The rights to cause the Company to register securities granted to any
party hereto under Sections 1.5, 1.6 and 1.7 may be assigned to a transferee or assignee in connection with any transfer or assignment of Registrable Securities by such party (together with any
affiliate); provided that (a) such transfer may otherwise be effected in accordance with applicable securities laws, (b) prior written notice of such assignment is given to the Company
and (c) such transferee or assignee (i) is a wholly-owned subsidiary or constituent partner or limited liability company member (including limited partners, retired partners, spouses and
ancestors, lineal descendants and siblings of such partners or spouses who acquire Registrable Securities by gift, will or intestate succession) or affiliate of such party, or (ii) acquires
from such party at least 500,000 of the Registrable Securities (as appropriately adjusted for any stock splits, consolidations, reorganizations and the like). Notice must be given to the Company and
the Company must give its consent in writing for any other assignment to occur and such consent shall not be unreasonably withheld. 

        1.15.    Standoff Agreement.    Each party hereto agrees in connection with the Company's IPO that, upon request of
the underwriters managing any underwritten offering of the Company's securities, not to sell, make any short sale of, loan, pledge or otherwise hypothecate or encumber, grant any option for the
purchase of, or otherwise dispose of any Shares (other than those included in the registration) without the prior written consent of such underwriters, as the case may be, for such period of time (not
to exceed one hundred eighty (180) days from the effective date of such registration) as may be requested by such managing underwriters, provided, however, that this Section 1.15 shall
apply only as long as all officers, directors and 1% stockholders of the Company enter into similar agreements. For purposes of this Section 1.15, the term "Company" shall include any
wholly-owned subsidiary of the Company into which the Company merges or consolidates. In order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the
certificates representing the shares subject to this section and to impose stop transfer instructions with respect to the Registrable Securities and such other shares of stock of each Holder (and the
shares or securities of every other person subject to the foregoing restriction) until the end of such period. Each Holder further agrees to enter into any agreement reasonably required by the
underwriters to implement the foregoing within any reasonable timeframe so requested. 

        1.16.    Termination of Rights.    The rights of any particular Holder to cause the Company to register securities
under Sections 1.5, 1.6 and 1.7 shall terminate with respect to such Holder on the earlier of (i) the five (5) year anniversary of the effective date of the Company's IPO and
(ii) such time at which all Registrable Securities held by such Holder (and any affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold in any
three (3)-month period without registration in compliance with Rule 144 of the Act and such Holder owns less than one percent (1%) of the Company's outstanding stock, and the Company's Common
Stock is listed on Nasdaq or other similar stock market. 

13

 

 
 

SECTION 2.    

 
  Right of First Offer

        2.1.    Right of First Offer.    

        (a)   Right of First Offer. Subject to the terms and conditions contained in this  Section 2.1, the Company hereby grants to each Investor the right of first offer to
purchase such Investor's Pro Rata Portion of any New
Securities (as defined in subsection 2.1(b)) which the Company may, from time to time, propose to sell and issue. An Investor's "Pro Rata Portion" for
purposes of this Section 2.1 is the ratio that (x) the sum of the number of shares of the Company's Common Stock held by the Investor or
issuable upon conversion of the Series B-1 Preferred Stock, Series A-1 Preferred Stock, Series A-2.1 Preferred Stock,
Series A-2.2 Preferred Stock, Series A-3 Preferred Stock, Series A-4 Preferred Stock, Series A-5 Preferred Stock and
Series A-6 Preferred Stock then held by such Investor bears to (y) the sum of the total number of shares of Common Stock then outstanding and the number of shares of the
Company's Common Stock issuable upon conversion of any then outstanding Preferred Stock of the Company. An Investor purchasing in full its Pro Rata Portion is hereinafter referred to as a
"Fully Exercising Investor". The sum of the Pro Rata Portions for all Investors equals the "Aggregate Pro Rata
Portion". 

        (b)   Definition of New Securities. Except as set forth below, "New Securities"
shall mean any shares of capital stock of the Company, including Common Stock and Preferred Stock, whether authorized or not, and rights, options or warrants to purchase said shares of Common Stock or
Preferred Stock, and securities of any type whatsoever that are, or may become, convertible into said shares of Common Stock or Preferred Stock. Notwithstanding the foregoing, New Securities does not
include: (i) shares of Common Stock issued or issuable upon conversion of outstanding shares of Preferred Stock; (ii) any shares of Common Stock or Preferred Stock (or options, warrants
or rights therefor) granted or issued hereafter to employees, officers, directors, contractors, consultants or advisers to, the Company or any subsidiary of the Company pursuant to incentive
agreements, stock purchase or stock option plans, stock bonuses or awards, warrants, contracts or other arrangements that are approved by the Board of Directors of the Company; (iii) any shares
of Common Stock or Preferred Stock (and/or options or warrants therefore) issued to parties that are (A) strategic partners investing in connection with a commercial relationship with the
Company or (B) providing the Company with equipment leases, real property leases, loans, credit lines, guaranties of indebtedness, cash price reductions or similar transactions, under
arrangements, in each case, approved by the Board of Directors of the Company; (iv) shares of Common Stock or Preferred Stock issued pursuant to the acquisition of another corporation or entity
by the Company by consolidation, merger, purchase of all or substantially all of the assets, or other reorganization in which the Company acquires, in a single transaction or series of related
transactions, all or substantially all of the assets of such other corporation or entity or fifty percent (50%) or more of the voting power of such other corporation or entity or fifty percent (50%)
or more of the equity ownership of such other entity; provided that such transaction or series of transactions has been approved by the Company's Board of Directors; (v) shares of Common Stock
or Preferred Stock issuable upon exercise of any options, warrants or rights to purchase any securities of the Company outstanding as of the date hereof and any securities issuable upon the conversion
thereof; (vi) shares of Common Stock issued pursuant to (A) the issue by the Company of additional shares of Common Stock as a dividend or other distribution on outstanding Common Stock,
(B) a subdivision of the outstanding shares of Common Stock into a greater number of shares of Common Stock, or (C) a combination of the outstanding shares of Common Stock into a smaller
number of shares of Common Stock, provided that for the purpose of clauses (A), (B) and (C), such issue, dividend or combination shall have been approved by the Board of Directors of the
Company; and (vii) shares of Common Stock issued or issuable in a public offering prior to or 

14

 

in
connection with which all outstanding shares of Preferred Stock are converted to Common Stock pursuant to the Company's certificate of incorporation. 

        (c)   Notice of Right. In the event the Company proposes to undertake an issuance of New Securities, it shall give each
Investor written notice of its intention, describing the type of New Securities and the price and terms upon which the Company proposes to issue the same. Each Investor shall have fifteen
(15) days from the date of the deemed receipt of any such notice to agree to purchase shares of such New Securities (up to the amount referred to in subsection 2.1(a) and, subject to the limits
described in this subsection (c), additional shares (if and to the extent available) of Unsubscribed Shares (as defined below)), for the price and upon the terms specified in the notice, by giving
written notice to the Company and stating therein the quantity of New Securities to be purchased. In the event that a Fully Exercising Investor's notice includes notice of such Fully Exercising
Investor's intent to purchase additional New Securities, should not all Investors choose to purchase their Pro Rata Portion set forth in subsection 2.1(a) (such number of New Securities, which
Investors have the right, but elect not, to purchase hereunder is referenced as the "Unsubscribed Shares"), each such Fully Exercising Investor shall be
entitled to purchase that number of Unsubscribed Shares equal to its pro rata portion of such
Unsubscribed Shares. For purposes of this Section 2.1(c), a Fully Exercising Investor's pro rata portion of Unsubscribed Shares is the ratio that
(x) the sum of the number of shares of the Company's Common Stock held by the Fully Exercising Investor or issuable upon conversion of the Series B-1 Preferred Stock,
Series A-1 Preferred Stock, Series A-2.1 Preferred Stock, Series A-2.2 Preferred Stock, Series A-3 Preferred Stock,
Series A-4 Preferred Stock, Series A-5 Preferred Stock and Series A-6 Preferred Stock then held by such Fully Exercising Investor bears to
(y) the sum of the number of shares of the Company's Common Stock held by all Fully Exercising Investors or issuable upon conversion of the Series B-1 Preferred Stock,
Series A-1 Preferred Stock, Series A-2.1 Preferred Stock, Series A-2.2 Preferred Stock, Series A-3 Preferred Stock,
Series A-4 Preferred Stock, Series A-5 Preferred Stock and Series A-6 Preferred Stock then held by all Fully Exercising Investors. For the sake
of clarity, the maximum amount of the New Securities that the Investors have the right hereunder to purchase shall not exceed the Aggregate Pro Rata Portion of the New Securities. 

        (d)   Exercise of Right. If any Investor exercises its right of first offer hereunder, the closing of the purchase of the New
Securities by such Investor with respect to which such right has been exercised shall take place within ninety (90) calendar days after the Investor gives notice of such exercise, which period
of time shall be extended in order to comply with applicable laws and regulations. Upon exercise of such right of first offer, the Company and such Investor shall be legally obligated to consummate
the purchase contemplated thereby and shall use their best efforts to secure any approvals required in connection therewith. 

        (e)   Lapse and Reinstatement of Right. In the event the Investors fail to exercise the right of first offer provided in this  Section 2.1 for all the New Securities
proposed to be sold by the Company within said fifteen (15) day period, the Company shall have
ninety (90) days thereafter to sell or enter into an agreement (pursuant to which the sale of New Securities covered thereby shall be closed, if at all, within sixty (60) days from the
date of said agreement) to sell the New Securities not elected to be purchased by such Investors at the price and upon the terms no more favorable to the purchasers of such securities than specified
in the Company's notice. In the event the Company has not sold the New Securities or entered into an agreement to sell the New Securities within said ninety (90) day period (or sold and issued
New Securities in accordance with the foregoing within sixty (60) days from the date of said agreement), the Company shall not thereafter issue or sell any New Securities without first offering
such securities to the Investors in the manner provided under this Section 2.1. 

        (f)    Assignment. The rights granted pursuant to Sections 2.1 may be assigned to a transferee or assignee in connection with
any transfer or assignment of Registrable Securities by such party 

15

 

(together
with any affiliate); provided that (a) such transfer may otherwise be effected in accordance with applicable securities laws, (b) prior written notice of such assignment is
given to the Company and (c) such transferee or assignee (i) is a wholly-owned subsidiary or constituent partner or limited liability company member (including limited partners, retired
partners, spouses and ancestors, lineal descendants and siblings of such partners or spouses who acquire Registrable Securities by gift, will or intestate succession) or affiliate of such party, or
(ii) acquires from such party at least 500,000 of the Registrable Securities (as appropriately adjusted for any stock splits, consolidations, reorganizations and the like). Notice must be given
to the Company and the Company must give its consent in writing for any other assignment to occur and such consent shall not be unreasonably withheld. 

        2.2.    Termination of Right of First Offer.    The right of first offer granted under Section 2.1 of this
Agreement shall terminate and be of no further force or effect immediately prior to the earliest of the following: 

        (a)   immediately
prior to the closing of a firm commitment underwritten public offering pursuant to an effective registration statement filed under the Securities Act of
1933, as amended, covering the offer and sale of Common Stock for the account of the Company in which (i) the per share price to the public is at least $4.10 (before deduction of underwriters'
discounts and commissions and which price shall be adjusted for any stock splits, combinations, reorganizations and the like), and (ii) the aggregate public offering price (before deduction of
underwriters' discounts and commissions) is at least $25,000,000; or 

        (b)   the
acquisition of the Company by any person or entity by means of any transaction or series of related transactions by the Company or its stockholders in which the
stockholders of the Company immediately prior to such transaction or series of related transactions own less than 50% of the Company's voting power immediately after such transaction or series of
related transactions (including, without limitation, any reorganization, merger or consolidation but excluding any merger effected exclusively for the purpose of changing the domicile of the Company);
(ii) the closing of the transfer (whether by merger, consolidation or otherwise), in one transaction or a series of related transactions, by stockholders of the Company to a person or group of
affiliated persons (other than an underwriter of the Company's securities), of the Company's then outstanding securities if, after such closing, such person or group of affiliated persons would hold
50% or more of the outstanding voting stock of the Company; or (iii) the sale, lease, assignment, transfer, conveyance, or disposal of all or substantially all of the assets of the Company or
the license of the Company's technology that would constitute a sale of all or substantially all of the assets of the Company (each of the foregoing, a "Liquidation Event"). 

 
 

SECTION 3.    

 
  Affirmative Covenants of the Company

        The
Company hereby covenants and agrees as follows: 

        3.1.    Financial Information.    The Company will maintain true books and records of account in which full and
correct entries will be made of all its business transactions pursuant to a system of accounting established and administered in accordance with generally accepted accounting principles consistently
applied, and will set aside on its books all such proper accruals and reserves as shall be required under generally accepted accounting principles consistently applied. So long as an Investor is a
holder of at least 400,000 shares of the Series B-1 Preferred Stock (as adjusted for any stock splits, consolidations, reorganizations and the like) or a number of Shares equal to
at least 1,000,000 of the 

16

 

Registrable
Securities (as appropriately adjusted for any stock splits, consolidations, reorganizations and the like), the Company will furnish to such Investor the following reports: 

        (a)   As
soon as practicable after the end of each fiscal year, and in any event within ninety (90) days thereafter, 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 cash flows of the Company and its subsidiaries, if any, for such year, prepared in accordance with
generally accepted accounting principles and setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and certified by independent public
accountants of national standing selected by the Company; and 

        (b)   As
soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year
of the Company, an unaudited profit or loss statement, schedule as to the sources and application of funds for such fiscal quarter and an unaudited balance sheet of the Company and its subsidiaries,
if any, prepared in accordance with generally accepted accounting principles, with the exception that no notes need be attached and year-end audit adjustments may not have been made, and a
statement of stockholder's equity, all for such quarter and for the current year to date and a statement showing the number of
shares of each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the end of the period, the number of common shares issuable
upon conversion or exercise of any outstanding securities convertible or exercisable for common shares and the exchange ratio or exercise price applicable thereto, all in sufficient detail as to
permit the Investor to calculate its percentage equity ownership in the Company. 

        (c)   No
later than sixty (60) days prior to the end of each fiscal year, an annual budget for the upcoming fiscal year. 

        (d)   As
soon as practicable after the end of each calendar month, and in any event within 30 days thereafter, unaudited consolidated balance sheets of the Company and
its subsidiaries, if any, as of the end of each calendar month, and unaudited consolidated statements of profit or loss and of cash flow for such period and for the current fiscal year to date and
setting forth in each case in comparative form the figures for the corresponding periods of the previous fiscal year. 

        (e)   Such
other information relating to the financial condition, business or corporate affairs of the Company as the Investor may from time to time request,  provided, however, that the Company shall not be obligated under this subsection (e) or any other
subsection of Section 3.1 to provide information that it deems in good faith to be a trade secret or similar confidential information. 

        3.2.    Operating Plan and Budget.    So long as an Investor holds at least 400,000 shares of the
Series B-1 Preferred Stock (as adjusted for any stock splits, consolidations, reorganizations and the like) or a number of Shares equal to at least 1,000,000 of the Registrable
Securities (as appropriately adjusted for any stock splits, consolidations, reorganizations and the like), as soon as practicable upon approval or adoption by the Board of Directors, the Company will
furnish such Investor with the Company's budget and operating plan (including projected balance sheets and profit and loss and cash flow statements) for such fiscal year. 

        3.3.    Inspection.    The Company shall permit each Investor, for so long as such Investor holds at least 400,000
shares of the Series B-1 Preferred Stock (as adjusted for any stock splits, consolidations, reorganizations and the like) or a number of Shares equal to at least 1,000,000 of the
Registrable Securities (as appropriately adjusted for any stock splits, consolidations, reorganizations and the like), at such Investor's expense, to visit and inspect the Company's properties, to
examine its books of account and records and to discuss the Company's affairs, finances and accounts with its officers, all at such reasonable times as may be requested by the Investor; provided,
however, that the Company shall 

17

 

not
be obligated pursuant to this Section 3.3 to provide access to any information which it reasonably considers to be a trade secret or similar confidential information. 

        3.4.    Assignment of Rights to Financial Information.    The rights granted pursuant to Sections 3.1, 3.2 and 3.3 may
be assigned to a transferee or assignee in connection with any transfer or assignment of Registrable Securities by such party (together with any affiliate); provided that (a) such transfer may
otherwise be effected in accordance with applicable securities laws, (b) prior written notice of such assignment is given to the Company, (c) such transferee or assignee (i) is a
wholly-owned subsidiary or constituent partner or limited liability company member (including limited partners, retired partners, spouses and ancestors, lineal descendants and siblings of such
partners or spouses who acquire Registrable Securities by gift, will or intestate succession) or affiliate of such party, or (ii) acquires from such party at least 500,000 of the Registrable
Securities (as appropriately adjusted for any stock splits, consolidations, reorganizations and the like) and (d) such transferee or assignee is not a competitor, or affiliated within the
meaning of Rule 144 under the Securities Act with a competitor, of the Company in the good faith judgment of the Company. Notice must be given to the Company and the Company must give its
consent in writing for any other assignment to occur and such consent shall not be unreasonably withheld. 

        3.5.    Termination of Covenants.    The covenants set forth in Sections 3.1 through 3.4 shall terminate on, and be of
no further force or effect after the earliest of the following: 

        (a)   the
date on which the Company is required to file reports with the Commission pursuant to Section 13 or 15(d) of the Exchange Act; or 

        (b)   the
date of the closing of any Liquidation Event. 

        3.6.    Delivery of Qualified Small Business Stock Representations.    The Company covenants and agrees, on the
reasonable request of any Investor, to conduct a reasonable investigation into the question of whether the Shares or Conversion Shares are "qualified small business stock" within the meaning of the
Internal Revenue Code of 1986, as amended, and to thereafter deliver to such Investor a duly executed Certificate of Representations in the form attached hereto as Exhibit A (the
"QSBS Certificate"). If the Company is unable to deliver an executed QSBS Certificate because representation statement 2 in the QSBS Certificate is
inaccurate, the Company covenants and agrees to deliver a statement explaining the reasons for such inaccuracy. 

        3.7.    Definition of Investor.    For purposes of determining the amount of Shares held by an Investor, all Investors
affiliated with, or controlling, controlled by or under common control with, any Investor shall be treated as a single Investor. 

        3.8.    Certain Covenants Relating to SBA Matters.    

        (a)   Use of Proceeds. The proceeds from the issuance and sale of the Series B-1 Preferred Stock pursuant to
the Stock Purchase Agreement (the "Proceeds") shall be used by the Company for its
growth, modernization or expansion. The Company shall provide each Investor which is a licensed Small Business Investment Company (an "SBIC Investor")
and the Small Business Administration reasonable access to the Company's books and records for the purpose of confirming the use of Proceeds. 

        (b)   Business Activity. For a period of one year following the Initial Closing, as defined in the Stock Purchase Agreement,
the Company shall not change the nature of its business activity if such change would render the Company ineligible as provided in Section 107.720 of Title 13 of the Code of Federal Regulations
(the "Federal Regulations"). 

        (c)   Compliance. So long as any SBIC Investor holds any securities of the Company, the Company will at all times comply with
the non-discrimination requirements of Parts 112, 113 and 117 of Title 13 of the Federal Regulations. 

18

 

        (d)   Information for SBIC Investor. Upon reasonable request, the Company agrees to promptly provide each SBIC Investor with
sufficient information to permit such SBIC Investor to comply with their obligations under the Small Business Investment Act of 1958, as amended, and the regulations promulgated thereunder and related
thereto; provided, however, each SBIC Investor agrees that it will protect any information which the Company labels as confidential to the extent permitted by law. Any submission of any financial
information to an SBIC Investor under this Section shall include a certificate of the Company's president, chief executive officer, treasurer or chief financial officer as to the accuracy of such
information. 

 
 

SECTION 4.    

 
  Miscellaneous

        4.1.    Assignment.    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 hereto. 

        4.2.    Third Parties.    Nothing in this Agreement, express or implied, is intended to confer upon any party, other
than the parties hereto, and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. 

        4.3.    Governing Law.    This Agreement shall be governed by and construed under the laws of the State of California
without regard to choice of laws or conflict of laws' provisions thereof. 

        4.4.    Aggregation of Shares.    For the purposes of determining the availability of any rights under this Agreement,
the holdings of (i) any transferee and assignee of an individual who is a spouse, ancestor, lineal descendant, adopted child, parent, grandparent or sibling of such individual, (ii) any
partnership and partners or retired partners of such partnership, any corporation or other business organization to which such partnership shall sell all or substantially all of its assets or with
which it shall be merged or affiliates of such partnership (including spouses and ancestors, lineal descendants and siblings of such partners or spouses who acquire Common Stock or Preferred Stock by
gift, will or intestate succession), (iii) any limited liability company and any of its members, any corporation or other business organization to which such limited liability company shall
sell all or substantially all of its assets or with which it shall be merged or any affiliate of such limited liability company, or (iv) any corporation and any corporation or other business
organization to which such corporation shall sell or transfer all or substantially all of its assets or with which it shall be merged and any affiliate of such corporation shall be aggregated together
with the individual, partnership, limited liability company or corporation as the case may be, for the purpose of exercising any rights or taking any action under this Agreement. 

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

        4.6.    Notices.    Any notice required or permitted by this Agreement shall be in writing and shall be sent by
prepaid registered or certified mail, return receipt requested, or otherwise delivered by hand or by messenger, or sent by facsimile or e-mail, addressed to the other party, in the case of
the Company or the Founders, to the Company, and in the case of the Investors, to the address set forth on the records of the Company, or at such other address or facsimile number for which such party
gives notice hereunder. Such notice shall be deemed to have been given three (3) days after deposit in the mail. 

        4.7.    Severability.    If one or more provisions of this Agreement are held to be unenforceable under applicable
law, portions of such provisions, or such provisions in their entirety, to the extent 

19

 

necessary,
shall be several from this Agreement, and the balance of this Agreement shall be enforceable in accordance with its terms. 

        4.8.    Amendment and Waiver.    Any provision of this Agreement may be amended or waived with the written consent of
(i) the Company, (ii) the holders of a majority of the aggregate outstanding Registrable Securities held by the Investors and (iii) the holders of a majority of the aggregate
outstanding Shares held by the Founders; provided that (i) no such amendment shall impose or increase any liability or obligation on a party hereto without the consent of such party and
(ii) no such amendment having a disproportionately adverse effect on any party in relation to the other parties may be made without consent of such party. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon each party to this Agreement. Notwithstanding anything herein to the contrary, if pursuant to Section 1.2 of the Stock Purchase Agreement,
additional parties may purchase shares of the Series B-1 Preferred Stock in any "Additional Closing" thereunder, then each such new "Investor" thereunder shall become a party to
this Agreement as a "Series B-1 Investor" hereunder, without the need for any consent, approval or signature of any Investor or any Founder when such new "Investor" thereunder has
both: (a) purchased shares of Series B-1 Preferred Stock under the Stock Purchase Agreement and paid the Company all consideration payable for such shares and
(b) executed one or more counterpart signature pages to this Agreement. 

        4.9.    Rights of Parties.    Each party to this Agreement shall have the absolute right to exercise or refrain from
exercising any right or rights that such party may have by reason of this Agreement, including, without limitation, the right to consent to the waiver or modification of any obligation under this
Agreement, and such party shall not incur any liability to any other party or other holder of any securities of the Company as a result of exercising or refraining from exercising any such right or
rights. 

        4.10.    Delays or Omissions.    No delay or omission to exercise any right, power or remedy accruing to any party to
this Agreement, upon any breach or default of the other party, shall impair any such right, power or remedy of such non-breaching party nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any
waiver on the part of any party of any provisions or conditions of this Agreement, must be made in writing and shall be effective only to the extent specifically set forth in such writing. All
remedies, either under this Agreement, or by law or otherwise afforded to any holder, shall be cumulative and not alternative. 

        4.11.    Entire Agreement; Effect on Prior Rights Agreement; Attorneys' Fees; Waiver of Rights.    

        (a)   Entire Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties
regarding the subject matter hereof and supersedes and cancels all prior agreements, negotiations, correspondence, undertakings and communications of the parties, oral or written, respecting such
subject matter. 

        (b)   Effect on Prior Rights Agreement. The provisions of this Agreement amend and supersede any rights or obligations under
the Prior Rights Agreement. 

        (c)   Attorneys' Fees. In the event that any suit or action is instituted to enforce any provision of this Agreement, the
prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this
Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 

        (d)   Waiver of Right of First Refusal. The undersigned Amending Parties hereby waive the right of first refusal set forth in  Section 2.1 of the Prior Rights Agreement
on behalf of all Investors 

20

 

otherwise
entitled to exercise such right of first refusal under the Prior Rights Agreement, including without limitation the 15-day response period thereunder, with respect to the
issuance of the Series B-1 Preferred Stock issued pursuant to the Stock Purchase Agreement, as it may be amended from time to time. 

        4.12.    Specific Performance.    Without limiting the rights of each party hereto to pursue all other legal and
equitable rights available to such party for any other party's failure to perform its obligations under this Agreement, each such party acknowledges and agrees that the remedy at law for any failure
to perform obligations hereunder would be inadequate and all such parties shall be entitled to specific performance, injunctive relief or other equitable remedies in the event of any such failure. 

*****

21

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

	 	 	THE COMPANY:
	

 	
 	

OMNEON VIDEO NETWORKS, INC.
	
 	
 	

By:	

/s/  JOSEPH KENNEDY      
 Joseph Kennedy

President and Chief Executive Officer
	
 	
 	
THE INVESTORS:
	

 	
 	

CHANCELLOR V, L.P.
	
 	
 	

By:	

IPC Direct Associates V, LLC, its general partner
	
 	
 	

By:	

INVESCO Private Capital, Inc., its managing member
	
 	
 	

By:	

/s/  ESFANDIAR LOHRASBPOUR      
 Name: Esfandiar Lohrasbpour

Title:
	

 	
 	
CHANCELLOR V-A, L.P.
	
 	
 	

By:	

IPC Direct Associates V, LLC, its general partner
	
 	
 	

By:	

INVESCO Private Capital, Inc., its managing member
	
 	
 	

By:	

/s/  ESFANDIAR LOHRASBPOUR      
 Name: Esfandiar Lohrasbpour

Title:
	

 	
 	
CITIVENTURE 2000, L.P.
	

 	
 	

By:	

IPC Direct Associates V, LLC, its general partner
	

 	
 	

By:	

INVESCO Private Capital, Inc., its managing member
	
 	
 	

By:	

/s/  ESFANDIAR LOHRASBPOUR      
 Name: Esfandiar Lohrasbpour

Title:
	 	 	 	 

22

 

	

 	
 	
EUROMEDIA VENTURE FUND (cotenancy of IPC Direct Associates V, LLC and EuroMedia Venture Belgique, S.A.)
	

 	
 	

By:	

IPC Direct Associates V, LLC, its general partner
	

 	
 	

By:	

INVESCO Private Capital, Inc., its managing member
	
 	
 	

By:	

/s/  ESFANDIAR LOHRASBPOUR      
 Name: Esfandiar Lohrasbpour

Title:
	

 	
 	
CENTRE PALISADES NON-QUALIFIED INVESTORS, L.P.
	

 	
 	

By:	

/s/  PAUL D'ADDARIO      
 Name: Paul D'Addario

Title: Senior Managing Director
	

 	
 	
CENTRE PALISADES QUALIFIED INVESTORS, L.P.
	

 	
 	

By:	

/s/  PAUL D'ADDARIO      
 Name: Paul D'Addario

Title: Senior Managing Director
	

 	
 	
CENTRE PALISADES VENTURES, L.P.
	

 	
 	

By:	

/s/  PAUL D'ADDARIO      
 Name: Paul D'Addario

Title: Senior Managing Director
	

 	
 	
ACCEL VI-S L.P.
	

 	
 	

By:	

Accel VI Associates L.L.C., its General Partner
	

 	
 	

By:	

/s/ [Illegible]
 Title: Attorney-in-Fact
	

 	
 	
ACCEL KEIRETSU VI L.P.
	

 	
 	

By:	

Accel Keiretsu VI L.L.C., its General Partner
	

 	
 	

By:	

/s/ [Illegible]
 Title: Attorney-in-Fact
	 	 	 	 

23

 

	

 	
 	
ACCEL INVESTORS '98 L.P.
	

 	
 	

By:	

/s/ [Illegible]
 Title: Attorney-in-Fact
	

 	
 	
ACCEL INVESTORS '98-S L.P.
	

 	
 	

By:	

Accel VI Associates L.L.C., its General Partner
	

 	
 	

By:	

/s/ [Illegible]
 Title: Attorney-in-Fact
	

 	
 	
NORWEST VENTURE PARTNERS VII-A, LP
	

 	
 	

By:	

Itasca VC Partners VII-A, LLP, its Managing Partner
	

 	
 	

By:	

/s/  PROMOD HAQUE      
 Name: Promod Haque

Title: Managing Director
	

 	
 	
ATV ENTREPRENEURS VII, L.P.
	

 	
 	

By:	

ATV Associates VII, L.L.C., its General Partner
	

 	
 	

By:	

/s/  WES RAFFEL      
 Print Name: Wes Raffel

Title: Managing Director
	

 	
 	
ATV ALLIANCE 2001, L.P.
	

 	
 	

By:	

ATV Alliance Associates, L.L.C., its General Partner
	

 	
 	

By:	

/s/  WES RAFFEL      
 Print Name: Wes Raffel

Title: Director
	

 	
 	
ATV ALLIANCE 2002, L.P.
	

 	
 	

By:	

ATV Alliance Associates, L.L.C., its General Partner
	

 	
 	

By:	

/s/  WES RAFFEL      
 Print Name: Wes Raffel

Title: Director
	 	 	 	 

24

 

	

 	
 	
ADVANCED TECHNOLOGY VENTURES VII, L.P.
	

 	
 	

By:	

ATV Associates VII, L.L.C., its General Partner
	

 	
 	

By:	

/s/  WES RAFFEL      
 Print Name: Wes Raffel

Title: Managing Director
	

 	
 	
ADVANCED TECHNOLOGY VENTURES VII (B), L.P.
	

 	
 	

By:	

ATV Associates VII, L.L.C., its General Partner
	

 	
 	

By:	

/s/  WES RAFFEL      
 Print Name: Wes Raffel

Title: Managing Director
	

 	
 	
ADVANCED TECHNOLOGY VENTURES VII (C), L.P.
	

 	
 	

By:	

ATV Associates VII, L.L.C., its General Partner
	

 	
 	

By:	

/s/  WES RAFFEL      
 Print Name: Wes Raffel

Title: Managing Director
	

 	
 	
IGNITE VENTURES I, L.P.
	

 	
 	

By:	

Ignite Venture Partners LLC—General Partner
	

 	
 	

By:	

/s/  NOBUO MII      
 Print Name: Nobuo Mii

Title: Managing Member
	

 	
 	
LUCENT VENTURE PARTNERS I LLC
	

 	
 	

By:	

/s/  PETER ROKKOS      
 Print Name: Peter Rokkos

Title: V.P.
	 	 	 	 

25

 

	

 	
 	
MERITECH CAPITAL PARTNERS II L.P.
	

 	
 	

By:	

/s/  MICHAEL B. GORDON      
 Print Name: Michael B. Gordon

Title: Managing Member
	

 	
 	
MERITECH CAPITAL AFFILIATES II L.P.
	

 	
 	

By:	

/s/  MICHAEL B. GORDON      
 Print Name: Michael B. Gordon

Title: Managing Member
	

 	
 	
MCP ENTREPRENEUR PARTNERS II
	

 	
 	

By:	

/s/  MICHAEL B. GORDON      
 Print Name: Michael B. Gordon

Title: Managing Member
	

 	
 	
ALFRED & GLADY'S PRATT TISCH TRUST FBO THOMAS TISCH
	

 	
 	

By:	

/s/  THOMAS A. TISCH      
 Print Name: Thomas A. Tisch

Title: Trustee
	

 	
 	
THOMAS A. & ROSEMARY S. TISCH TRUST
	

 	
 	

By:	

/s/  THOMAS A. TISCH      
 Print Name: Thomas A. Tisch

Title: Trustee
	

 	
 	
GC&H INVESTMENTS LLC
	

 	
 	

By:	

/s/  JOHN L. CARDOZA      
 Print Name: John L. Cardoza

Title: Managing Member
	

 	
 	
LIGHTHOUSE CAPITAL PARTNERS II, L.P.
	

 	
 	

By:	

Lighthouse Management Partners II, L.P., its General Partner
	

 	
 	

By:	

Lighthouse Capital Partners Inc., its General Partner
	

 	
 	

By:	

/s/  THOMAS CONNEELY      
 Name: Thomas Conneely

Title: Vice President
	 	 	 	 

26

 

	

 	
 	
LIGHTHOUSE CAPITAL PARTNERS III, L.P.
	

 	
 	

By:	

Lighthouse Management Partners III, L.L.C., its General Partner
	

 	
 	

By:	

/s/  THOMAS CONNEELY      
 Name: Thomas Conneely

Title: Vice President
	

 	
 	
INTEL CAPITAL CORPORATION
	

 	
 	

By:	

/s/  RAVI JACOB      
 Print Name: Ravi Jacob

Title: Vice President, Finance & Enterprise Services

Group Asst Treasurer, M & A
	

 	
 	
JP MORGAN PARTNERS (BHCA), L.P.
	

 	
 	

By:	

JPMP Master Fund Manager, L.P.

Its General Partner
	

 	
 	

By:	

JPMP Capital Corp.,

Its General Partner
	

 	
 	

By:	

/s/  THOMAS SZYMONIAK      
 Print Name: Thomas Szymoniak

Title: Assistant Secretary
	

 	
 	
MICHAEL GRANT WATTERS AND TERRI LYNN WATTERS TRUSTEES OF THE WATTERS FAMILY TRUST U/D/T DATED DECEMBER 17, 1999
	

 	
 	

By:	

/s/  MICHAEL WATTERS      
 Print Name: Michael Watters

Title: Trustee
	 	 	 	 

27

 

	

 	
 	
COMERICA INCORPORATED
	

 	
 	

By:	

/s/  ANTHONY G. MORROW      
 Print Name: Anthony G. Morrow

Title: Vice President, Corporate Counsel & Assistant Secretary
	

 	
 	
FOUNDERS:
	

 	
 	

 	

/s/  DONALD M. CRAIG      
 Donald M. Craig
	

 	
 	

 	

 Michael M. Gilbert
	

 	
 	

 	

 Edward P. Hobson, II
	

 	
 	

 	

/s/  LAWRENCE R. KAPLAN      
 Lawrence R. Kaplan

28

  

EXHIBIT A  

OMNEON VIDEO NETWORKS, INC.,

a Delaware corporation

CERTIFICATE OF REPRESENTATIONS

REGARDING QUALIFIED SMALL BUSINESS STOCK  

        THIS CERTIFICATE OF REPRESENTATIONS REGARDING QUALIFIED SMALL BUSINESS STOCK (this "Certificate") is executed as
of                        ,            by Omneon
Video Networks, Inc., a Delaware corporation (the "Company"), for the benefit
of                        (the
"Stockholder"). As used herein, the term "Stock" means those shares of Company stock issued by the Company to the Stockholder and described more fully
on Schedule A hereto. 

Representations  

        Subject to the limitations and qualifications set forth below, the Company hereby represents as follows: 

        1.     The
Company has conducted a reasonable investigation into the question of whether the Stock is "qualified small business stock"
("QSBS") within the meaning of Section 1202(c) of the Internal Revenue Code of 1986, as amended (the "Code"); and 

        2.     As
of the date first above written, and assuming that the Stockholder has not sold, distributed, or otherwise transferred the Stock, all of the Stock is QSBS. 

Qualifications and Limitations  

        1.     Qualification
of the Stock as QSBS is based, in part, on the value of Company stock or other assets at certain relevant times. For purposes of the representations made in
this Certificate, the Company has made a good faith determination of such values, taking into account all material facts and circumstances, but cannot guarantee that the Internal Revenue Service will
not successfully assert that such determination is incorrect. 

        2.     Qualification
of the Stock as QSBS is based, in part, on whether the Company has been engaged in the active conduct of one or more qualified trades or businesses. The
term "qualified trade or business" set forth in Section 1202(e)(3) of the Code is not clearly defined in all respects. For purposes of the representations made in this Certificate, the Company
has made a good faith effort to apply the definition of qualified trade or business set forth in Section 1202(e)(3) of the Code, but cannot guarantee that the Internal Revenue Service will not
successfully assert a contrary definition. 

        3.     Qualification
of the Stock as QSBS is based, in part, on whether at least eighty percent (by value) of the Company's assets have been used in the active conduct of one or
more qualified trades or businesses. For this purpose, assets held as "working capital" of a qualified trade or business within the meaning of Section 1202(e)(6) of the Code are treated as used
in the active conduct of such trade or business. The term "working capital" set forth in Section 1202(e)(6) of the Code is not clearly defined in all respects. For purposes of the
representations made in this Certificate, the Company has made a good faith effort to apply the definition of working capital set forth in Section 1202(e)(6) of the Code, but cannot guarantee
that the Internal Revenue Service will not successfully assert a contrary definition. 

        4.     Qualification
of the Stock as QSBS is based, in part, on whether the Company purchased any of its stock from a person related to the Stockholder during a relevant testing
period. For purposes of the representations made in this Certificate, the Company has made a good faith determination that such purchases did not occur, but cannot guarantee that the Internal Revenue
Service will not successfully assert that such determination is incorrect. 

29

 

        5.     While
the representations contained herein are made in good faith, the Company assumes no liability for the failure of the Stock to qualify as QSBS. 

        IN
WITNESS WHEREOF, the Company has executed this Certificate as of the date first above written. 

	 	 	BY:	 	

	
 	
 	

TITLE:	
 	

30

 
 
 

SCHEDULE A    
    

	Class/Type of Stock
	 	Certificate Number
	 	Number of Shares
	 	Issue Date

	
 	
 	

 	
 	

 	
 	

 

31

QuickLinks

Exhibit 4.02

FOURTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

RECITALS

SECTION 1.

Restrictions on Transferability; Registration Rights

SECTION 2.

Right of First Offer

SECTION 3.

Affirmative Covenants of the Company

SECTION 4.

Miscellaneous

SCHEDULE AQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.01    
    

OMNEON VIDEO NETWORKS, INC.  

1998 STOCK OPTION PLAN  

        1.    Purposes of the Plan.    The purposes of this 1998 Stock Option Plan are to attract and retain the best
available personnel for positions of substantial responsibility, to provide additional incentive to Employees and Consultants of the Company and its Subsidiaries and to promote the success of the
Company's business. Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant of an Option and subject to the
applicable provisions of Section 422 of the Code and the regulations promulgated thereunder. 

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

        (a)   "Administrator" means the Board or any of its Committees appointed pursuant to Section 4 of the Plan. 

        (b)   "Applicable Laws" means the legal requirements relating to the administration of stock option plans under U.S. state
corporate laws, U.S. federal and state securities laws, the Code and the applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under the Plan. 

        (c)   "Board" means the Board of Directors of the Company. 

        (d)   "Code" means the Internal Revenue Code of 1986, as amended. 

        (e)   "Committee" means a Committee appointed by the Board of Directors in accordance with Section 4 of the Plan. 

        (f)    "Common Stock" means the Common Stock of the Company. 

        (g)   "Company" means Omneon Video Networks, Inc., a Delaware corporation. 

        (h)   "Consultant" means any person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory
services and is compensated for such services, and any Director of the Company whether compensated for such services or not. If the Company registers any class of any equity security pursuant to the
Exchange Act, the term Consultant shall thereafter not include Directors who are not compensated for their services or are paid only a Director's fee by the Company. 

        (i)    "Continuous Status as an Employee or Consultant" means that the employment or consulting relationship with the Company,
any Parent or Subsidiary is not interrupted or terminated. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of (i) any leave of absence approved by
the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. A leave of absence approved by the Company shall include
sick leave, military leave, or any other personal leave approved by an authorized representative of the Company. For purposes of Incentive Stock Options, no such leave may exceed 90 days,
unless reemployment upon expiration of such leave is guaranteed by statute or contract, including Company policies. If reemployment upon expiration of a leave of absence approved by the Company is not
so guaranteed, on the 91st day of such leave any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option. 

        (j)    "Director" means a member of the Board of Directors of the Company. 

1

 

        (k)   "Employee" means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the
Company. The payment of a Director's fee by the Company shall not be sufficient to constitute "employment" by the Company. 

        (l)    "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (m)  "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

        (i)    If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation The Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

        (ii)   If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high
bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination; or 

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

        (n)   "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code. 

        (o)   "Nonstatutory Stock Option" means an Option not intended to qualify as an Incentive Stock Option. 

        (p)   "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder. 

        (q)   "Option" means a stock option granted pursuant to the Plan. 

        (r)   "Optioned Stock" means the Common Stock subject to an Option. 

        (s)   "Optionee" means an Employee or Consultant who receives an Option. 

        (t)    "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the
Code. 

        (u)   "Plan" means this 1998 Stock Option Plan. 

        (v)   "Section 16(b)" means Section 16(b) of the Securities Exchange Act of 1934, as amended. 

        (w)  "Share" means a share of the Common Stock, as adjusted in accordance with Section 12 below. 

        (x)   "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of
the Code. 

        3.    Stock Subject to the Plan.    Subject to the provisions of Section 12 of the Plan, the maximum aggregate
number of Shares that may be subject to option and sold under the Plan is Six Million Three Hundred Three Thousand Eight Hundred Twenty-One (6,303,821) Shares. The Shares may be authorized
but unissued, or reacquired Common Stock. 

        If
an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an option exchange program, the unpurchased Shares that were subject
thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). 

2

 

However,
Shares that have actually been issued under the Plan, upon exercise of an Option, shall not be returned to the Plan and shall not become available for future distribution under the Plan,
except that if Shares are repurchased by the Company at their original purchase price, and the original purchaser of such Shares did not receive any benefits of ownership of such Shares, such Shares
shall become available for future grant under the Plan. For purposes of the preceding sentence, voting rights shall not be considered a benefit of Share ownership. 

        4.    Administration of the Plan.    

        (a)   Initial Plan Procedure. Prior to the date, if any, upon which the Company becomes subject to the Exchange Act, the Plan
shall be administered by the Board or a Committee appointed by the Board. 

        (b)   Plan Procedure after the Date, if any, upon which the Company Becomes Subject to the Exchange Act. 

        (i)    Multiple Administrative Bodies. If permitted by Rule 16b-3, the Plan may be administered by different
bodies with respect to Directors, Officers and Employees who are neither Directors nor Officers. 

        (ii)   Administration with Respect to Directors and Officers. With respect to grants of Options to Employees who are also
Officers or Directors of the Company, the Plan shall be administered by (A) the Board if the Board may administer the Plan in compliance with the rules under Rule 16b-3
promulgated under the Exchange Act or any successor thereto ("Rule 16b-3") relating to the disinterested administration of employee
benefit plans under which Section 16(b) exempt discretionary grants and awards of equity securities are to be made, or (B) a Committee designated by the Board to administer the Plan,
which Committee shall be constituted to comply with the rules under Rule 16b-3 relating to the disinterested administration of employee benefit plans under which
Section 16(b) exempt discretionary grants and awards of equity securities are to be made. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by the rules under
Rule 16b-3 relating to the disinterested administration of employee benefit plans under which Section 16(b) exempt discretionary grants and awards of equity securities are to
be made. 

        (iii)  Administration with Respect to Other Employees and Consultants. With respect to grants of Options and to Employees or
Consultants who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which committee shall be
constituted in such a manner as to satisfy Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. From time to time
the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws. 

        (c)   Powers of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee, the specific duties
delegated by the Board to such Committee, and subject to the approval of any relevant authorities, including the approval, if required, of any stock exchange 

3

 

upon
which the Common Stock is listed, the Administrator shall have the authority in its discretion: 

        (i)    to
determine the Fair Market Value of the Common Stock, in accordance with Section 2(m) of the Plan; 

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

        (iii)  to
determine whether and to what extent Options are granted hereunder; 

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

        (v)   to
approve forms of agreement for use under the Plan; 

        (vi)  to
determine the terms and conditions of any award granted hereunder; 

        (vii) to
determine whether and under what circumstances an Option may be settled in cash under subsection 9(f) instead of Common Stock; 

        (viii) to
reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option has declined
since the date the Option was granted; 

        (ix)  to
provide for the early exercise of Options for the purchase of unvested shares subject to such terms and conditions as the Administrator may determine; and 

        (x)   to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan. 

        (d)   Effect of Administrator's Decision. All decisions, determinations and interpretations of the Administrator shall be final
and binding on all Optionees and any other holders of any Options. 

        5.    Eligibility.    

        (a)   Nonstatutory
Stock Options may be granted to Employees and Consultants. Incentive Stock Options may be granted only to Employees. An Employee or Consultant who has been
granted an Option may, if otherwise eligible, be granted additional Options. 

        (b)   Each
Option shall be designated in the written option agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such
designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year
(under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock
Options shall be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 

        (c)   Neither
the Plan nor any Option shall confer upon any Optionee any right with respect to continuation of his or her employment or consulting relationship with the
Company, nor shall it interfere in any way with his or her right or the Company's right to terminate his or her employment or consulting relationship at any time, with or without cause. 

        (d)   Upon
the Company or a successor corporation issuing any class of common equity securities required to be registered under Section 12 of the Exchange Act or upon
the Plan being assumed by a corporation having a class of common equity securities required to be registered 

4

 

under
Section 12 of the Exchange Act, the following limitations shall apply to grants of Options to Employees: 

        (i)    The
foregoing limitations shall be adjusted proportionately in connection with any change in the Company's capitalization as described in Section 11. 

        (ii)   If
an Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described in Section 11),
the cancelled Option shall be counted against the limit set forth in subsection (i) above. For this purpose, if the exercise price of an Option is reduced, such reduction will be treated as a
cancellation of the Option and the grant of a new Option. 

        6.    Term of Plan.    The Plan shall become effective upon the earlier to occur of its adoption by the Board of
Directors or its approval by the stockholders of the Company, as described in Section 17 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated
under Section 13 of the Plan. 

        7.    Term of Option.    The term of each Option shall be the term stated in the Option Agreement; provided, however,
that the term shall be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the
date of grant thereof or such shorter term as may be provided in the Option Agreement. 

        8.    Option Exercise Price and Consideration.    

        (a)   The
per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrator, but shall be subject to
the following: 

        (i)    In
the case of an Incentive Stock Option 

        (A)  granted
to an Employee who, at the time of grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 

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

        (ii)   In
the case of a Nonstatutory Stock Option 

        (A)  granted
to a person who, at the time of grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of the grant. 

        (B)  granted
to any other person, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant. 

        (b)   The
consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in
the case of an Incentive Stock Option, shall be determined at the time of grant). Such consideration may consist of (1) cash, (2) check, (3) promissory note, (4) other
Shares that (x) in the case of Shares acquired upon exercise of an Option, have been owned by the Optionee for more than six months on the date of surrender, and (y) have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised, (5) delivery of a properly executed exercise notice together with
such other documentation as the Administrator and a broker, if applicable, shall require to effect an 

5

 

exercise
of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price, or (6) any combination of the foregoing methods of payment. In making its
determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company. 

        9.    Exercise of Option.    

        (a)   Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable at such times and
under such conditions as determined by the Administrator, including performance criteria with respect to the Company and/or the Optionee, and as shall be permissible under the terms of the Plan.
Except in the case of Options granted to Officers, Directors and Consultants, Options shall become exercisable at a rate of no less than 20% per year over five (5) years from the date the
Options are granted. 

An
Option may not be exercised for a fraction of a Share. 

        An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise
the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 8(b) hereof. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right to vote, receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment shall be made for a dividend or other right for which
the record date is prior to the date the stock certificate is issued, except as provided in Section 11 hereof. 

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

        (b)   Termination of Employment or Consulting Relationship. In the event of termination of an Optionee's Continuous Status as
an Employee or Consultant (but not in the event of an Optionee's change of status from Employee to Consultant (in which case an Employee's Incentive Stock Option shall automatically convert to a
Nonstatutory Stock Option on the date three (3) months and one day following such change of status) or from Consultant to Employee), such Optionee may, but only within such period of time as is
determined by the Administrator, of at least thirty (30) days, with such determination in the case of an Incentive Stock Option not exceeding three (3) months after the date of such
termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise his or her Option to the extent that the Optionee was entitled to
exercise it at the date of such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of such termination, or if the Optionee does not exercise such Option
to the extent so entitled within the time specified herein, the Option shall terminate. 

        (c)   Disability of Optionee. In the event of termination of an Optionee's Continuous Status as an Employee or Consultant as a
result of his or her disability, the Optionee may within six (6) months of termination, or such longer period of time as specified in the Option Agreement not to exceed twelve
(12) months from the date of such termination (and in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent
otherwise entitled to exercise it at the date of such termination. If such disability is not a "disability" as such term is defined in Section 22(e)(3) of the Code, in the case 

6

 

of
an Incentive Stock Option such Incentive Stock Option shall automatically cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option on
the day three months and one day following such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of termination, or if the Optionee does not exercise
such Option to the extent so entitled within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

        (d)   Death of Optionee. In the event of the death of an Optionee, the Option may be exercised within six (6) months of
termination, or such longer period of time as specified in the Option Agreement not to exceed twelve (12) months following the date of death (but in no event later than the expiration of the
term of such Option as set forth in the Notice of Grant) by the Optionee's estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent that
the Optionee was entitled to exercise the Option on the date of death. If, at the time of death, the
Optionee was not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall immediately revert to the Plan. If, after the Optionee's death, the
Optionee's estate or a person who acquires the right to exercise the Option by bequest or inheritance does not exercise the Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan. 

        (e)   Rule 16b-3. Options granted to persons subject to Section 16(b) of the Exchange Act must comply
with Rule 16b-3 and shall contain such additional conditions or restrictions as may be required thereunder to qualify for the maximum exemption from Section 16 of the
Exchange Act with respect to Plan transactions. 

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

        10.    Non-Transferability of Options.    Options may. not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 

        11.    Adjustments Upon Changes in Capitalization or Merger.    

        (a)   Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of shares of
Common Stock covered by each outstanding Option, and the number of shares of Common Stock that have been authorized for issuance under the Plan but as to which no Option has yet been granted or that
has been returned to the Plan upon cancellation or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted
for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or
any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company. The conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. 

        (b)   Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator
shall notify the Optionee at least fifteen (15) days prior to such 

7

 

proposed
action. To the extent it has not been previously exercised, the Option shall terminate immediately prior to the consummation of such proposed action. 

        (c)   Merger. In the event of a merger of the Company with or into another corporation, each outstanding Option may be assumed
or an equivalent option or right may be substituted by such successor corporation or a parent or subsidiary of such successor corporation. If, in such event, an Option is not assumed or substituted,
the Option shall terminate as of the date of the closing of the merger. For the purposes of this paragraph, the Option shall be considered assumed if, following the merger, the Option confers the
right to purchase or receive, for each Share of Optioned Stock subject to the Option immediately prior to the merger, the consideration (whether stock, cash, or other securities or property) received
in the merger by holders of Common Stock for each Share held on the effective date of the transaction (and if the holders are offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares). If such consideration received in the merger is not solely common stock of the successor corporation or its Parent, the Administrator may, with the
consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock subject to the Option, to be solely common stock of
the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger. 

        12.    Time of Granting Options.    The date of grant of an Option shall, for all purposes, be the date on which the
Administrator makes the determination granting such Option, or such other date as is determined by the Administrator. Notice of the determination shall be given to each Employee or Consultant to whom
an Option is so granted within a reasonable time after the date of such grant. 

        13.    Amendment and Termination of the Plan.    

        (a)   Amendment and Termination. The Board may at any time amend, alter, suspend or discontinue the Plan, but no amendment,
alteration, suspension or discontinuation shall be made that would impair the rights of any Optionee under any grant theretofore made, without his or her consent. In addition, to the extent necessary
and desirable to comply with Rule 16b-3 under the Exchange Act or with Section 422 of the Code (or any other applicable law or regulation, including the requirements of the
NASD or an established stock exchange), the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required. 

        (b)   Effect of Amendment or Termination. Any such amendment or termination of the Plan shall not affect Options already
granted, and such Options shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Administrator, which
agreement must be in writing and signed by the Optionee and the Company. 

        14.    Conditions upon Issuance of Shares.    Shares shall not be issued pursuant to the exercise of an Option unless
the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933,
as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance. 

        As
a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned relevant provisions of law. 

8

 

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

        The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance
and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

        16.    Agreements.    Options shall be evidenced by written agreements in such form as the Administrator shall approve
from time to time. 

        17.    Stockholder Approval.    Continuance of the Plan shall be subject to approval by the stockholders of the
Company within twelve (12) months before or after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under Applicable Laws and the rules
of any stock exchange upon which the Common Stock is listed. 

        18.    Information to Optionees and Purchasers.    The Company shall provide to each Optionee and to each individual
who acquires Shares pursuant to the Plan, not less frequently than annually during the period such Optionee or purchaser has one or more Options outstanding, and, in the case of an individual who
acquires Shares pursuant to the Plan, during the period such individual owns such Shares, copies of annual financial statements. The Company shall not be required to provide such
statements to key employees whose duties in connection with the Company assure their access to equivalent information. 

9

  

	Notice of Stock Option Grant	 	Omneon Video Networks, Inc.
	 	 	965 Stewart Drive

Sunnyvale, CA 94086

Federal Tax ID: 77-0483655
	

	[Name of Optionee]	 	 
	[Address of Optionee]	 	Option Number:
	[Address of Optionee]	 	Plan:        1998 Stock Option Plan
	 	 	ID:
	

The undersigned Optionee has been granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan, and the attached Stock Option
Agreement. (Please see the attached Stock Option Agreement for definitions of capitalized terms used in this Notice of Stock Option Grant.) Information about the Option grant follows: 

	Date of Grant:	 	

	

Vesting Commencement Date:	
 	

	

Exercise Price Per Share:	
 	

	

Total Number of Shares Granted:	
 	

	

Total Exercise Price:	
 	

	

Expiration Date:	
 	

	 	 	(unless earlier terminated pursuant to the Stock Option Agreement)
	
Type of Option	
 	

 
	(Check one):	 	o Incentive Stock Option
	

 	
 	

o Nonstatutory Stock Option
	

Classification of Optionee	
 	

o Exempt Employee
	

 	
 	

o Nonexempt Employee

Vesting Schedule: 

The
Option is exercisable immediately, in whole or in part, conditioned upon Optionee entering into a Restricted Stock Purchase Agreement with respect to any unvested Option Shares. The Shares subject
to this Option shall vest and/or be released from the Company's repurchase option, as set forth in the Restricted Stock Purchase Agreement, according to the following schedule: 

[25]% of the Shares subject to the Option shall vest on the one (1) year anniversary of the Vesting Commencement Date,
and 1/[36]th of the remaining Shares subject to the Option shall vest each month thereafter, subject to Optionee
continuing to be an Employee or Consultant on such dates. 

Termination Period: 

This
Option may be exercised, to the extent vested, for thirty (30) days after termination of your employment or consulting relationship. A longer period may be applicable, however, upon your 

10

 

disability
or death as provided in this Stock Option Agreement, but in no event later than the expiration date as provided above. 

By
your signature and the Company's signature below, you and the Company agree that this Option is granted under and governed by the terms and conditions of the Stock Option Agreement and the Plan,
which are attached to and made a part of this document. 

	Signed: 

	

	
 	

,	

	
 	
[Type officer name/title]	
 	
Date
	

Signed: 

	
[TYPE OPTIONEE NAME]	

 	
 	

DATE	
 	

 

11

   OMNEON VIDEO NETWORKS, INC.

1998 STOCK OPTION PLAN

STOCK OPTION AGREEMENT  

        Unless otherwise defined herein, the terms defined in the 1998 Stock Option Plan shall have the same defined meanings in this Stock Option Agreement. 

        1.    Grant of Option.    The Company hereby grants to the Optionee an Option to purchase the number of shares of
Common Stock (the "Shares") set forth in the Notice of Stock Option Grant, at the exercise price per share set forth in the Notice of Stock Option Grant (the "Exercise Price"). This Option is
exercisable immediately in whole or in part, conditioned upon Optionee executing and delivering the Exercise Notice and Investment Representation in the form available from the Company's finance
department (the "Notice") and entering into a Restricted Stock Purchase Agreement with respect to any unvested Option Shares. The Shares subject to this Option shall vest and/or be released from the
Company's repurchase option, as set forth in the Notice of Stock Option Grant and the Restricted Stock Purchase Agreement. This grant of an Option is subject to the terms, definitions and provisions
of the 1998 Stock Option Plan (the "Plan") adopted by the Company, which is incorporated herein by reference. 

        OPTIONEE
ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH
THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S EMPLOYMENT OR CONSULTANCY AT
ANY TIME, WITH OR WITHOUT CAUSE. 

        If
designated in the Notice of Stock Option Grant as an Incentive Stock Option ("ISO"), this Option is intended to qualify as an ISO as defined in Section 422 of the Code. 

        2.    Exercise of Option.    This Option is exercisable as follows: 

        (i)    Right
to Exercise. 

	(a)
	Subject
to subsections 2(i)(b) through 2(i)(e) below, this Option shall be exercisable cumulatively according to the vesting schedule set out in the Notice of Stock Option Grant. At
the election of the Optionee, this Option may also be exercised in whole or in part at any time as to any Shares which have not yet vested. For purposes of this Stock Option Agreement, Shares subject
to this Option shall vest based on continued employment of or consulting services by Optionee with the Company. Vested Shares shall not be subject to the Company's repurchase right as set forth in the
Restricted Stock Purchase Agreement, available from the Company's finance department.

	(b)
	As
a condition to exercising this Option for unvested Shares, the Optionee shall execute the Restricted Stock Purchase Agreement.

	(c)
	This
Option may not be exercised for a fraction of a Share.

	(d)
	In
the event of Optionee's death, disability or other termination of the employment or consulting relationship, the exercisability of the Option is governed by Sections 6, 7 and 8
below, subject to the limitation contained in subsection 2(i)(g). 

12

 

	(e)
	Vesting
under this Stock Option Agreement shall be suspended during any approved leave of absence or following sixty (60) days of disability leave except to the extent such
suspension of vesting may be restricted under applicable Federal law. Upon an Optionee's return following any such period of leave, the dates (other than the date on which the Stock Option will
expire) set forth in the Notice of Stock Option Grant shall be adjusted to reflect the period during which vesting was suspended pursuant to the terms hereof.

	(f)
	Vesting
under this Stock Option Agreement shall be suspended during any period (other than due to vacations or holidays or due an absence described in Section 2(i)(d) hereof)
in which Optionee's regular hours worked falls below twenty (20) hours per week. Upon Optionee's return to regular full time work following any such period of reduced work, the dates (other
than the date on which the Stock Option will expire) set forth in the Notice of Stock Option Grant shall be adjusted to reflect the period during which vesting was suspended pursuant to the terms
hereof. If Optionee's regular hours worked fall below the level of regular full-time work, but remain greater that twenty (20) hours per week, vesting under this Stock Option may be
adjusted by the Administrator.

	(g)
	In
no event may this Option be exercised after the date of expiration of the term of this Option as set forth in the Notice of Stock Option Grant. 

        (ii)   Method of Exercise. This Option shall be exercisable by delivery of the Notice to the Company as specified herein. The
Notice must state the number of Shares for which the Option is being exercised, and such other representations and agreements with respect to such shares of Common Stock as may be required by the
Company pursuant to the provisions of the Plan. The Notice must be signed by the Optionee and, together with an executed copy of the Restricted Stock Purchase Agreement, if applicable, shall be
delivered in person or by certified mail to the Secretary of the Company. The Notice and Restricted Stock Purchase Agreement must be accompanied by payment of the Exercise Price. This Option shall be
deemed to be exercised upon receipt by the Company of such written Notice and Restricted Stock Purchase Agreement accompanied by the Exercise Price in a form permitted under Section 4 of this
Agreement. 

        No
Shares shall be issued pursuant to the exercise of an Option unless such issuance and such exercise comply with all relevant provisions of law and the requirements of any stock
exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares. 

        3.    Lock-Up Period.    Optionee hereby agrees that if so requested by the Company or any representative
of the underwriters (the "Managing Underwriter") in connection with any registration of the offering of any securities of the Company under the Securities Act, Optionee shall not sell or otherwise
transfer any Shares or other securities of the Company during the 180-day period (or such longer period as may be requested in writing by the Managing Underwriter and agreed to in writing
by the Company) (the "Market Standoff Period") following the effective date of a registration statement of the Company filed under the Securities Act; provided, however, that such restriction shall
apply only to the first registration statement of the Company to become effective under the Securities Act that includes securities to be sold on behalf of the Company to the public in an underwritten
public offering under the Securities Act. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market
Standoff Period. 

        4.    Method of Payment.    Payment of the Exercise Price shall be by any of the following, or a combination thereof,
at the election of the Optionee; 

        (i)    cash;
or 

        (ii)   check,
or 

13

 

        (iii)  surrender
of other shares of Common Stock of the Company which (A) in the case of Shares acquired pursuant to the exercise of a Company option, have been owned
by the Optionee for more than six (6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the Exercise Price of the Shares as to which the
Option is being exercised; or 

        (iv)  to
the extent permitted by the Administrator, delivery of a properly executed exercise notice together with such other documentation as the Administrator and the
broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the Exercise Price. 

        5.    Restrictions on Exercise.    If the issuance of Shares upon such exercise or if the method of payment for such
shares would constitute a violation of any applicable federal or state securities or other law or regulation, then the Option may not be exercised. The Company may require Optionee to make any
representation and warranty to the Company as may be required by any applicable law or regulation before allowing the Option to be exercised. 

        6.    Termination of Relationship.    If an Optionee's Continuous Status as an Employee or Consultant terminates,
Optionee may exercise this Option during the period set out in the Notice of Stock Option Grant, to the extent the Option was vested at the date of such termination (the "Termination Date"). To the
extent that Optionee was not vested in this Option at the date of such termination, or if Optionee does not exercise this Option within the time specified herein, the Option shall terminate. 

        7.    Disability of Optionee.    Despite Section 6 above, if an Optionee's Continuous Status as an Employee or
Consultant terminates as a result of his or her disability, Optionee may exercise the Option to the extent the Option was vested at the date of such termination, but only within six (6) months
from the date of such termination (and in no event later than the expiration date of the term of such Option as set forth in the Stock Option Agreement). To the extent that Optionee is not vested in
the Option at
the date of termination, or if Optionee does not exercise such Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

        8.    Death of Optionee.    If Optionee's Continuous Status as an Employee or Consultant terminates as a result of the
death of Optionee, the vested portion of the Option may be exercised at any time within six (6) months following the date of death (but in no event later than the date of expiration of the term
of this Option as set forth in Section 10 below) by Optionee's estate or by a person who acquires the right to exercise the Option by bequest or inheritance. To the extent that Optionee is not
vested in the Option at the date of death, or if the Option is not exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the
Plan. 

        9.    Non-Transferability of Option.    This Option may not be transferred in any manner except by will or
by the laws of descent or distribution. It may be exercised during the lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee. 

        10.    Term of Option.    This Option may be exercised only within the term set out in the Notice of Stock Option
Grant. 

        11.    Tax Consequences.    Set forth below is a brief summary as of the Effective Date of the Plan of some of the
federal and California tax consequences of exercise of the Option and disposition of the Shares. This summary is necessarily incomplete, and the tax laws and regulations are
subject to change. The Optionee should consult a tax adviser before exercising the option or disposing of the shares.

14

 

        (i)    Exercise of ISO. If the Option qualifies as an ISO, there will be no regular federal or California income tax liability
upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as a tax preference item for
federal alternative minimum tax purposes and may subject the Participant to the alternative minimum tax in the year of exercise. 

        (ii)   Exercise of Nonstatutory Stock Option. If the Option does not qualify as an ISO, there may be a regular federal and
California income tax liability upon the exercise of the Option. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any,
of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company, the Company may be required to withhold from
Participant's compensation or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 

        (iii)  Disposition of Shares. The following tax consequences may apply upon disposition of the Shares. 

	(a)
	Incentive Stock Options. If the Shares are held for more than twelve (12) months after the date of purchase of the Shares
pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated as long term capital gain
for federal and California income tax purposes. If Vested Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain realized on
such disposition will be treated as compensation income (taxable at ordinary income rates in the year of the disposition) to the extent of the excess, if any, of the Fair Market Value of the Shares on
the date of exercise over the Exercise Price. To the extent the Option was exercised prior to vesting coincident with the filing of an 83(b) Election (as defined below), the amount taxed because of a
disqualifying disposition will be based upon the excess, if any, of the fair market value over the exercise price on the vesting date(s) for the Shares
that were disposed of in the disqualifying disposition.

	(b)
	Nonstatutory Stock Options. If the Shares are held for more than twelve (12) months after the date of purchase of the Shares
pursuant to the exercise of a nonstatutory stock option, any gain realized on disposition of the Shares will be treated as long-term capital gain.

	(c)
	Withholding. The Company may be required to withhold from the Participant's compensation or collect from the Participant and pay to the
applicable taxing authorities an amount equal to a percentage of this compensation income. 

        12.    Section 83(b) Election for Unvested Shares.    With respect to unvested Shares which are subject to the
Company's repurchase option, unless an election (an "83(b) Election") is filed by the Participant with the Internal Revenue Service (and, if necessary, the proper state taxing authorities),  within 30 days of the purchase of the unvested Shares, electing pursuant to Section 83(b) of the Code (and similar state tax provisions,
if applicable) to be taxed currently on any difference between the Exercise Price of the unvested Shares and their Fair Market Value on the date of purchase, there may be a recognition of taxable
income (including, where applicable, alternative minimum taxable income) to the Optionee, 

15

 

measured
by the excess, if any, of the Fair Market Value of the unvested Shares at the time they cease to be unvested Shares, over the Exercise Price of the unvested Shares. 

	 OMNEON VIDEO NETWORKS, INC.	 
	
 By:	

 	

 
	 	
	 

	
 Title:	

 	

 
	 	
	 
	 	 	 
	
 OPTIONEE	

 
	 	 	 
	

	

 

16

 
1998 STOCK OPTION PLAN

RESTRICTED STOCK PURCHASE AGREEMENT (UNVESTED SHARES)  

        THIS AGREEMENT (this "Agreement") is made
between                        (the "Purchaser") and Omneon Video Networks, Inc., a Delaware corporation (the
"Company"), as of                        , 20            . 

RECITALS  

        (1)    Pursuant
to the exercise of the stock option granted to Purchaser (the "Option") under the Company's 1998 Stock Option Plan and pursuant to the Stock Option Agreement
(the "Stock Option Agreement") dated                        by and between the Company and Purchaser with respect to such grant,
which Stock Option Agreement is hereby incorporated by reference, Purchaser
has elected to purchase                        of those shares of the Company's Common Stock subject to the Stock Option Agreement
which have not become vested under the vesting schedule set forth in the
Stock Option Agreement ("Unvested Shares"). The Unvested Shares and the shares subject to the Stock Option Agreement which have become vested are sometimes collectively referred to herein as the
"Shares". 

        (2)    As
a condition to Purchaser's election to exercise the option. Purchaser must execute this Restricted Stock Purchase Agreement, which sets forth the rights and
obligations of the parties with respect to Shares acquired upon exercise of the Option. 

        1.    Repurchase Option.    

	(a)
	If
Purchaser's employment or consulting relationship with the Company is terminated for any reason, including for cause, death, and disability, the Company shall have the right and
option to purchase from Purchaser, or Purchaser's personal representative, as the case may be, all of the Purchaser's Unvested Shares as of the date of such termination at the price paid by the
Purchaser for such Shares (the "Repurchase Option").

	(b)
	Upon
the occurrence of a termination, the Company may exercise its Repurchase Option by delivering personally or by registered mail, to Purchaser (or his transferee or legal
representative, as the case may be), within ninety (90) days of the termination, a notice in writing indicating the Company's intention to exercise the Repurchase Option and setting forth a
date for closing not later than thirty (30) days from the mailing of such notice. The closing shall take place at the Company's headquarters. At the closing, the holder of the certificates for
the Unvested Shares being transferred shall deliver the stock certificate or certificates evidencing the Unvested Shares, and the Company shall deliver the purchase price therefor.

	(c)
	At
its option, the Company may elect to make payment for the Unvested Shares to a bank selected by the Company. The Company shall avail itself of this option by a notice in writing to
Purchaser stating the name and address of the bank, date of closing, and waiving the closing at the Company's office.

	(d)
	If
the Company does not elect to exercise the Repurchase Option conferred above by giving the requisite notice within ninety (90) days following the termination, the Repurchase
Option shall terminate. 

        2.    Transferability of the Shares; Escrow.    

	(a)
	Purchaser
hereby authorizes and directs the secretary of the Company, or such other person designated by the Company, to transfer the Unvested Shares as to which the Repurchase Option
has been exercised from Purchaser to the Company. 

17

 

	(b)
	To
insure the availability for delivery of Purchaser's Unvested Shares upon repurchase by the Company purest to the Repurchase Option under Section 1, Purchaser hereby appoints
the secretary, or any other person designated by the Company as escrow agent, as its attorney-in-fact to sell, assign and transfer unto the Company, such Unvested Shares, if
any, repurchased by the Company pursuant to the Repurchase Option and shall, upon execution of this Agreement, deliver and deposit with the secretary of the Company, or such other person designated by
the Company, the share certificates representing the Unvested Shares, together with the stock assignment duly endorsed in blank, attached hereto as  Schedule 1. The Unvested Shares and stock
assignment shall be held by the secretary in escrow, pursuant to the Joint Escrow Instructions of the
Company and Purchaser attached as Schedule 2 hereto, until the Company exercises its Repurchase Option as provided in Section 1, until
such Unvested Shares are vested, or until such time as this Agreement no longer is in effect As a further condition to the Company's obligations under this Agreement, the spouse of the Purchaser, if
any, shall execute and deliver to the Company the Consent of Spouse attached hereto as Schedule 3. Upon vesting of the Unvested Shares, the
escrow agent shall promptly deliver to the Purchaser the certificate or certificates representing such Shares in the escrow agent's possession belonging to the Purchaser, and the escrow agent shall be
discharged of all further obligations hereunder; provided, however, that the escrow agent shall nevertheless retain such certificate or certificates as escrow agent if so required pursuant to other
restrictions imposed pursuant to this Agreement.

	(c)
	The
Company, or its designee, shall not be liable for any act it may do or omit to do with respect to holding the Shares in escrow and while acting in good faith and in the exercise
of its judgment.

	(d)
	Transfer
or sale of the Shares is subject to restrictions on transfer imposed by any applicable state and federal securities laws. Any transferee shall hold such Shares subject to all
the provisions hereof and the Exercise Notice executed by the Purchaser with respect to any Unvested Shares purchased by Purchaser and shall acknowledge the same by signing a copy of this Agreement. 

        3.    Ownership, Voting Rights, Duties.    This Agreement shall not affect in any way the ownership, voting rights or
other rights or duties of Purchaser, except as specifically provided herein. 

        4.    Legends.    The share certificate evidencing the Shares issued hereunder shall be endorsed with the following
legend (in addition to any legend required under applicable state securities laws); 

THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF
WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 

        5.    Adjustment for Stock Split.    All references to the number of Shares and the purchase price of the Shares in
this Agreement shall be appropriately adjusted to reflect any stock split, stock dividend or other change in the Shares which may be made by the Company after the date of this Agreement. 

        6.    Notices.    Notices required hereunder shall be given in person or by registered mail to the address of
Purchaser shown on the records of the Company, and to the Company at its principal executive office. 

        7.    Survival of Terms.    This Agreement shall apply to and bind Purchaser and the Company and their respective
permitted assignees and transferees, hairs, legatees, executors, administrators and legal successors. 

18

 

        8.    Section 83(b) Elections.    

	(a)
	Election for Unvested Shares Purchased Pursuant to Nonstatutory Stock Options. Purchaser hereby acknowledges that he or she has been
informed that, with respect to the exercise of a Nonstatutory Stock Option for Unvested Shares, that unless an election is' filed by the Purchaser with the Internal Revenue Service and, if necessary,
the proper state taxing authorities, within 30 days of the purchase of the Shares, electing pursuant to Section 83(b) of the Code (and
similar state tax provisions if applicable) to be taxed currently on any difference between the purchase price of the Shares and their Fair Market Value on the date of purchase, there will be a
recognition of taxable income to the Optionee, measured by the excess, if any, of the fair market value of the Shares, at the time the Company's Repurchase Option lapses over the purchase price for
the Shares. Optionee represents that Optionee has consulted any tax consultants) Optionee deems advisable in connection with the purchase of the Shares or the filing of the Election under
Section-83(b) and similar tax provisions. A form of Election under Section 83(b) is attached hereto as Schedule 4 for
reference.

	(b)
	Election for Unvested Shares Purchased Pursuant to Incentive Stock Options. Purchaser hereby acknowledges that he or she has been
informed that, with respect to the exercise of an Incentive Stock Option for Unvested Shares, that unless an election is filed by the Purchaser with the Internal Revenue Service and, if necessary, the
proper state taxing authorities, within 30 days of the purchase of the Shares, electing pursuant to Section 83(b) of the Code (and similar
state tax provisions if applicable) to be taxed currently on any difference between the purchase price of the Shares and their Fair Market Value on the date of purchase, there will be a recognition of
income to the Optionee, for alternative minimum tax purposes, measured by the excess, if any, of the fair market value of the Shares, at the time the Company's Repurchase Option lapses over the
purchase price for the Shares. Optionee represents that Optionee bar consulted any tax consultants) Optionee deems advisable in connection with the purchase of the Shares or the filing of the Election
under Section 83(b) and similar tax provisions. A form of Election under Section 83(b) for alternative minimum tax purposes is attached hereto as  Schedule 1 for reference. Purchaser
hereby further acknowledges that he or she has been informed that, to the extent the Option has been
exercised prior to vesting coincident with the filing of the Election under 83(b), the amount taxed because of a disqualifying disposition will be based
upon the excess, if any, of the fair market value over the exercise price on the vesting date(s) for the Shares that were disposed of in the
disqualifying disposition. 

PURCHASER
ACKNOWLEDGES THAT IT IS PURCHASER'S SOLE RESPONSIBILITY AND NOT THE COMPANY'S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF PURCHASER REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO
MAKE THUS FILING ON PURCHASER'S BEHALF. 

        9.    Representations.    Purchaser has reviewed with his own tax advisers the federal, state, local and foreign tax
consequences of this investment and the transactions contemplated by this Agreement. Purchaser is relying solely on such advisors and not on any statements or representations of the Company or any of
its agents. Purchaser understands that he (and not the Company) shall be responsible for his own tax liability that may arise as a result of this investment or the transactions contemplated by this
Agreement. 

        10.    Governing Law.    This Agreement shall be governed by the internal substantive laws but not the choice of law
rules of California. 

        [remainder of this page intentionally left blank]

19

 

        Purchaser
represents that he or she has read this Agreement and is familiar with its terms and provisions. Purchaser hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Board of Directors of the Company upon any questions arising under this Agreement. 

        IN
WITNESS WHEREOF, this Agreement is deemed made as of the date first set forth above. 

	 	 	"Company"

OMNEON VIDEO NETWORKS, INC.
	 	 	 	 
	
 	
 	

By:	

 
	 	 	

	
 	
 	

Title:	

 
	 	 	

	 	 	 	 
	
 	
 	

"PURCHASER"
	 	 	 	 
	
 	
 	

 Address:
	
 	
 	

	
 	
 	

20

  

 
 

SCHEDULE 1    
    
    ASSIGNMENT SEPARATE FROM CERTIFICATE    
    

        FOR VALUE RECEIVED I,
                                         
                                    , hereby sell assign and
transfer unto
                                         
                                          
        
(                   ) shares of the Common Stock of Omneon Video Networks, Inc., standing in my name of the books of said corporation
represented by Certificate No.
                    herewith and do hereby irrevocably constitute and appoint
                              to transfer the said stock on the books of the
within named corporation with full power of substitution in the premises. 

        This
Stock Assignment may be used only in accordance with the Restricted Stock Purchase Agreement between Omneon Video Networks, Inc. and the undersigned dated
                                         
       , 20          .
 

        Dated:
                                         
       , 20           

        Signature:
                                         
                           

        INSTRUCTIONS: Please do not fill in any blanks other than the signature line. The purpose of this assignment is to
enable the Company to exercise its "repurchase option," as set forth in the Agreement, without requiring additional signatures on to part of the Purchaser. 

21

 
 
 

SCHEDULE 2    
    
    JOINT ESCROW INSTRUCTIONS    
    

                                        
        ,
20           

Fenwick &
West LLP

Attn: Thomas A. Trudell

Silicon Valley Center

801 California St.

Mountain View, CA 94041 

        To
the Escrow Agent for Omneon Video Networks, Inc. Common Stock: 

        As
Escrow Agent for both Omneon Video Networks, Inc., a Delaware corporation (the "Company"), and the undersigned purchaser of stock of the Company (the "Purchaser"), you are
hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock Purchase Agreement ("Agreement") between the Company and the undersigned,
in accordance with the following instructions: 

        1.     In
the event the Company and/or any assignee of the Company (referred to collectively for convenience herein as the "Company") exercises the Company's repurchase option
set forth in the Agreement, the Company shall give to Purchaser and you a written notice specifying the number of shares of stock to be purchased, the purchase price, and the time for a closing
hereunder at the principal office of the Company. Purchaser and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the
terms of said notice. 

        2.     At
the closing, you are directed (a) to date the stock assignments necessary for the transfer in question, (b) to fill in the number of shares being
transferred, and (c) to deliver the same, together with the certificate evidencing the shares of stock to be transferred, to the Company or its assignee, against the simultaneous delivery to
you of the purchase price (by cash, a check, or some combination thereof) for the number of shares of stock being purchased pursuant to the exercise of the Company's repurchase option. 

        3.     Purchaser
irrevocably authorizes the Company to deposit with you any certificates evidencing shares of stock to be held by you hereunder and any additions and
substitutions to said shares as defined in the Agreement. Purchaser does hereby irrevocably constitute and appoint you as Purchaser's attorney-in-fact and agent for the term of
this escrow to execute with respect to such securities all documents necessary or appropriate to make such securities negotiable and to complete any transaction herein contemplated, including but not
limited to the filing with any applicable state blue sky authority of any required applications for consent to, or notice of transfer of, the securities. Subject to the provisions of this
paragraph 3, Purchaser shall exercise all rights and privileges of a stockholder of the Company while the stock is held by you. 

        4.     Upon
written request of the Purchaser, but no more than once per calendar year, unless the Company's repurchase option has been exercised, you will deliver to Purchaser a
certificate or certificates representing so many shares of stock as are not then subject to the Company's repurchase option. Within 120 days after cessation of Purchaser's continuous employment
by or services to the Company, or any parent or subsidiary of the Company, you will deliver to Purchaser a certificate or certificates representing the aggregate number of shares held or issued
pursuant to the Agreement and not purchased by the Company or its assignees pursuant to exercise of the Company's repurchase option. 

22

 

        5.     If
at the time of termination of this escrow you should have in your possession any documents, securities, or other property belonging to Purchaser, you shall deliver all
of the same to Purchaser and shall be discharged of all further obligations hereunder. 

        6.     Your
duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto. 

        7.     You
shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from
acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be personally liable for any act you may do or omit
to do hereunder as Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith, and any act done or omitted by you pursuant to the advice of your own attorneys
shall be conclusive evidence of such good faith. 

        8.     You
are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting only orders or
process of courts of law and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree, you
shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently
reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction. 

        9.     You
shall not be liable in any respect on account of the identity, authorities or rights of the parties executing or delivering or purporting to execute or deliver the
Agreement or any documents or papers deposited or called for hereunder. 

        10.   You
shall not be liable for the outlawing of any rights under the Statute of Limitations with respect to these Joint Escrow Instructions or any documents deposited with
you. 

        11.   You
shall be entitled to employ such legal counsel and other experts as you may deem necessary properly to advise you in connection with your obligations hereunder, may
rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 

        12.   Your
responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an officer or agent of the Company or if you shall resign by written notice to
each party. In the event of any such termination, the Company shall appoint a successor Escrow Agent. 

        13.   If
you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto
shall join in furnishing such instruments. 

        14.   It
is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder,
you are authorized and directed to retain in your possession without liability to anyone all or any part of said securities until such disputes shall have been settled either by mutual written
agreement of the parties concerned or by a final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be
under no duty whatsoever to institute or defend any such proceedings. 

        15.   Any
notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States
Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties there unto 

23

 

entitled
at the following addresses or at such other addresses as a party may designate by an days' advance written notice to each of the other parties hereto. 

	 	 	COMPANY:	 	Omneon Video Networks, Inc.

Attn: Chief Financial Officer

965 Stewart Drive

Sunnyvale, CA 94086	 	 
	

 	
 	

PURCHASER:	
 	

	
 	

 
	
 	
 	

 	
 	

	
 	

 
	
 	
 	

 	
 	

	
 	

 
	
 	
 	

 	
 	

	
 	

 
	

 	
 	

ESCROW AGENT:	
 	

Fenwick & West LLP

Attn: Thomas A. Trudell

Silicon Valley Center

801 California St.

Mountain View, CA 94041	
 	

 

        16.   By
signing these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow instructions; you do not become a party to the Agreement. 

        17.   This
instrument shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. 

        18.   These
Joint Escrow Instructions shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 

	 	 	OMNEON VIDEO NETWORKS, INC.
	
 	
 	

By:

	 	 	Title:

	
 	
 	

PURCHASER:
	
 	
 	

	
 	
 	

ESCROW AGENT:
	
 	
 	

24

 
 
 

SCHEDULE 3
  
    CONSENT OF SPOUSE    
    

I,
                                         
                        , spouse of
                                         
                                     have read and approve the
foregoing Restricted Stock Purchase Agreement (the "Agreement"). In
consideration of granting of the right to my spouse to purchase shares of Omneon Video Networks, Inc. as set forth in the Agreement, I hereby appoint my spouse as my
attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said
Agreement or any shares issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of
the foregoing Agreement. 

        Dated:
                                         
       , 20          
 

                                        
                                        

25

 
 
 

SCHEDULE 4
  
    ELECTION UNDER SECTION 83(b)
  
    OF THE INTERNAL REVENUE CODE OF 1986

The
undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in taxpayer's gross income for the current taxable year the amount
of any compensation taxable to taxpayer in connection with taxpayer's receipt of the property described below: 

	1.
	The
name, address, taxpayer identification number and taxable year of the undersigned are as follows: 

	 	 	NAME:	 	TAXPAYER:	 	

	
 	
 	

 	
 	

SPOUSE:	
 	

	
 	
 	

ADDRESS:	
 	

	
 	
 	

IDENTIFICATION NO.:	
 	

TAXPAYER:	
 	

	
 	
 	

 	
 	

SPOUSE:	
 	

	
 	
 	

TAXABLE YEAR:	
 	

	2.
	The
property with respect to which the election is made is described as follows:                          shares (the "Shares")
of the Common Stock of Omneon Video
Networks, Inc. (the "Company").

	3.
	The
date on which the property was transferred is:
                                         
       , 20          .

	4.
	The
property is subject to the following restrictions: 

The
Shares may not be transferred and are subject to forfeiture under the terms of an agreement between the taxpayer and the Company. These restrictions lapse upon the satisfaction of certain
conditions contained in such agreement. 

	5.
	The
fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property is:
$                             .

	6.
	The
amount (if any) paid for such property is:
$                                         
       .
 

The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner. 

	Dated:
                                         
       , 20          	 	                                        
                                

Taxpayer
	
The undersigned spouse of taxpayer joins in this election.
	
 Dated:
                                         
       , 20          	
 	

                                         
                               

Spouse of Taxpayer

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   1998 STOCK OPTION PLAN  

EXERCISE NOTICE AND INVESTMENT REPRESENTATION (VESTED SHARES)  

Omneon
Video Networks, Inc.

965 Stewart Drive

Sunnyvale, CA 94085-3913 

        1.    Exercise of Option.    Effective as of today,
                        , the undersigned ("Optionee") hereby elects to
exercise Optionee's option to purchase                        shares of the Common Stock (the "Shares") of Omneon Video Networks,
 Inc., a Delaware corporation (the "Company"), under and pursuant to
the Company's 1998 Stock Option Plan (the "Plan") and the Stock Option Agreement dated                        (the "Stock Option
Agreement"). The aggregate Exercise Price for the above Shares is
$                        . 

        2.    Representations of Optionee.    Optionee acknowledges that Optionee has received, read and understood the Plan
and the Stock Option Agreement. Optionee agrees to abide by and be bound by their terms and conditions. Optionee represents to the Company the following: 

        (a)   Optionee
is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Shares. Optionee is acquiring these Shares for investment for Optionee's own account only and not with a view to, or for resale in connection with, any
"distribution" thereof within the meaning of the Securities Act of 1933, as amended (the "Securities Act"). 

        (b)   Optionee
acknowledges and understands that the Shares constitute "restricted securities" under the Securities Act and have not been registered under the Securities Act
in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee's investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee's representation was predicated solely upon a
present intention to hold the Shares for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Shares, or
for a period of one year or any other fixed period in the future. Optionee further understands that the Shares must be held indefinitely unless they are subsequently registered by the Company under
the Securities Act or an exemption from such registration is available. Optionee further acknowledges and understands that the Company is under no obligation to register the Shares. Optionee
understands that the certificate evidencing the Shares will be imprinted with a legend which prohibits the transfer of the Shares unless they are registered or such registration is not required in the
opinion of counsel satisfactory to the Company and any other legend required under applicable state securities laws. 

        (c)   Optionee
is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public
resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701
provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act. In the event
the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market
stand-off agreement may require) the Shares that were issued under the Rule 701 exemption may be resold, subject to the satisfaction of certain of the conditions specified by
Rule 144, including the resale being made through a broker in an unsolicited "broker's transaction" or in transactions directly with a market-maker (as said term is defined under the 

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Securities
Exchange Act of 1934, as amended) and, in the case of affiliates of the Company, (1) the availability of certain public information about the Company, (2) the amount of
Securities being sold during any three month period not exceeding the limitations specified in Rule 144(e), and (3) the timely filing of a Form 144, if applicable. 

        In
the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Shares may be resold in certain limited circumstances subject to the
provisions of Rule 144, which requires the resale to occur not less than one year after the later of the date the Shares were sold by the Company or the date the Shares were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Shares by an affiliate, or by a non-affiliate who subsequently holds the Shares less
than two years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above. 

        (d)   Optionee
further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act,
compliance with Regulation A, or compliance with some other exemption from registration will be required; and that, notwithstanding the fact that
Rules 144 and 701 are not exclusive, the staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than ins
registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or
sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that any such other
registration exemption will be available in such event. 

        3.    Rights as Stockholder.    Until the stock certificate evidencing such Shares is issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with
respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be
made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the Plan. 

        Optionee
shall enjoy rights as a stockholder until such time as Optionee disposes of the Shares or the Company and/or its assignee(s) exercises the Right of First Refusal hereunder. Upon
such exercise, Optionee shall have no further rights as a holder of the Shares so purchased except the right to receive payment for the Shares so purchased in accordance with the provisions of this
Agreement, and Optionee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation. 

        4.    Company's Right of First Refusal.    Before any Shares held by Optionee or any transferee (either being
sometimes referred to herein as the "Holder") may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal
to purchase the Shares on the terms and conditions set forth in this Section (the "Right of First Refusal"). 

        (a)   Notice of Proposed Transfer    The Holder of the Shares shall deliver to the Company a written notice (the
"Notice") stating: (i) the Holder's bona fide intention to sell or otherwise transfer such Share; (ii) the name of each proposed purchaser or other transferee ("Proposed Transferee");
(iii) the number of Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Shares
(the "Offered Price"), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s). 

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        (b)   Exercise of Right of First Refusal    Within thirty (30) days after receipt of the Notice, the Company
and/or its assignees) may elect in writing to purchase all, but not less than all, of the Shares proposed
to be transferred to any one or more of the Proposed Transferees. The purchase price will be determined in accordance with subsection (c) below. 

        (c)   Purchase Price    The purchase price ("Purchase Price") for the Shares repurchased under this Section shall be
the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the
Company in good faith. 

        (d)   Payment    Payment or the Purchase Price shall be made, at the option of the Company or its assignee(s), in
cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination
thereof within thirty (30) days after receipt of the Notice or in the manner and at the times set forth in the Notice. 

        (e)   Holder's Right to Transfer    If all of the Shares proposed in the Notice to be transferred to a given Proposed
Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered
Price or at a higher price, provided that such sale or other transfer is consummated within one hundred twenty (120) days after the date of the Notice and provided further that any such sale or
other transfer is effected in accordance with any applicable securities laws and the Proposed Transferee agrees in writing that the provisions of this Section shall continue to apply to the Shares in
the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the
Company and/or its assignees shall again be offered the Right of First Refusal as provided herein before any Shares held by the Holder may be sold or otherwise transferred. 

        (f)    Exception for Certain Family Transfers    Anything to the contrary contained in this Section notwithstanding,
the transfer of any or all of the Shares during the Optionee's lifetime or on the Optionee's death by will or intestacy to the Optionee's immediate family or a trust for the benefit of the Optionee's
immediate family shall be exempt from the provisions of this Section. "Immediate Family" as used herein shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister or
stepchild (whether or not adopted). In such case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section, and there shall be no
further transfer of such Shares except in accordance with the terms of this Section. 

        (g)   Termination of Right of First Refusal    The Right of First Refusal shall terminate as to any Shares ninety
(90) days after the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange
Commission under the Securities Act of 1933, as amended. 

        5.    Tax Consultation.    Optionee understands that Optionee may suffer adverse tax consequences as a result of
Optionee's purchase or disposition of the Shares. Optionee represents that Optionee has consulted
with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice. 

        6.    Restrictive Legend; and Stop-Transfer Orders.    

        (a)   Legends    Optionee understands and agrees that the Company shall cause the legends set forth below or legends
substantially equivalent thereto, to be placed upon any certificate(s) 

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evidencing
ownership of the Shares together with any other legends that may be required by state or federal securities laws: 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE
THEREWITH. 

THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE
BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON
TRANSFEREES OF THESE SHARES. 

        (b)   Stop-Transfer Notices    Optionee agrees that, in order to ensure compliance with the restrictions
referred to herein, the Company may issue appropriate "stop transfer" instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records. 

        (c)   Refusal to Transfer    The Company shall not be required (i) to transfer on its books any Shares that
have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so transferred. 

        7.    Successors and Assigns.    The Company may assign any of its rights under this Agreement to single or multiple
assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon
Optionee and his or her heirs, executors, administrators, successors and assigns. 

        8.    Interpretation.    Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or
by the Company forthwith to the Company's Board of Directors or the committee thereof that administers the Plan, which shall review such dispute at its next regular meeting. The resolution of such a
dispute by the Board or committee shall be final and binding on the Company and on Optionee. 

        9.    Governing Law; Severability.    This Agreement shall be governed by and construed in accordance with the laws of
the State of California excluding that body of low pertaining to conflicts of law. Should any provision of this Agreement be determined by a court of law to be illegal of unenforceable, the other
provisions shall nevertheless ruin effective and shall remain enforceable. 

        10.    Notices.    Any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath
its signature, or to such other address as such party may designate in writing from time to time to the other party. 

        11.    Further Instruments.    The parties agree to execute such further instruments and to take such further action
as may be reasonably necessary to carry out the purposes and intent of this Agreement. 

        12.    Delivery of Payment.    Optionee herewith delivers to the Company the full Exercise Price for the Shares. 

        [remainder of this page intentionally left blank]

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        13.    Entire Agreement.    The Plan and the Stock Option Agreement (including the Notice of Stock Option Grant) are
incorporated herein by reference. This Agreement, the Plan, the Stock Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties and
supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof. 

	Submitted by:	 	Accepted by:
	

OPTIONEE:	
 	

OMNEON VIDEO NETWORKS, INC.
	 	 	 	 
	 	 	By:	 
	
	 	 	

	 	 	 	 
	 	 	Its:	 
	 	 	 	

	
 Certificate Registration Name and Address:	
 	

 	

 
	

	
 	

 	

 
	

	
 	

 	

 
	

	
 	

 	

 
	

	
 	

 	

 
	

	
 	

 	

 
	

	
 	

 	

 
	

	
 	

 	

 

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QuickLinks

Exhibit 10.01

SCHEDULE 1 ASSIGNMENT SEPARATE FROM CERTIFICATE

SCHEDULE 2 JOINT ESCROW INSTRUCTIONS

SCHEDULE 3 CONSENT OF SPOUSE

SCHEDULE 4 ELECTION UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE OF 1986

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