Document:

EX-10.8 Performance Award Agreement 2015.01.07

Exhibit 10.8

AZZ INCORPORATED
PERFORMANCE SHARE

AWARD AGREEMENT

This Award, granted on ________________ (“Grant Date”), by AZZ incorporated, a Texas corporation (hereinafter called the “Corporation”), to ________________ (the “Participant) is subject to the terms and conditions of the 2014 Long Term Incentive Plan, as amended from time to time (the “2014 Plan”), and this Award Agreement. 

W I T N E S S E T H:

WHEREAS, the Corporation has adopted the 2014 Plan, effective as of July 8, 2014, with the objective of advancing the best interests of the Corporation and its shareholders in order to attract, retain and motivate key employees with additional incentives through the award of Performance Shares.

NOW, THEREFORE, it is agreed as follows: 

1. Award of Performance Shares. 

(a)    Award.  The Corporation hereby grants to the Participant the right to receive all or any part of Performance Awards at the target level of _________ shares of Common Stock (the “Target Amount”), subject to the terms, conditions and restrictions set forth herein and in the 2014 Plan and to the level of achievement of the Performance Goals established by the Committee as set forth on Appendix A (the “Performance Goals”). The actual number of shares of Common Stock, or the cash equivalent thereof, earned by the Participant at the end of the Restricted Period (the “Performance Shares”) may range from 0 to 200% of the Target Amount.  The right to receive such Performance Shares is referred to herein as the “Award.”

(b)    2014 Plan.  The Award and this Award Agreement are each subject to all of the terms, conditions and restrictions set forth in the 2014 Plan.  In the event of a conflict between the Award Agreement and the 2014 Plan, the 2014 Plan shall prevail.  Terms that are capitalized but not defined herein shall have the same meaning ascribed to such terms in the 2014 Plan.

(c)    Rights to Common Stock.  Prior to the registration of Performance Shares as described in paragraph 2, holders of the Award shall have none of the rights of a shareholder with respect to such Performance Shares (including, but not limited to, voting and tender rights and any right to receive dividends in cash or other property or other distribution or rights in respect of such shares) except as otherwise provided in this Award Agreement or the 2014 Plan.  During the Restricted Period (as defined below), the dividend equivalents will accrue on the Awards but will not be paid unless and until the underlying Awards vest.  In determining the number of Performance Shares, or the cash equivalent thereof, issuable to the Participant based on the level of achievement of the Performance Goals as of the end of the Restricted Period, the Committee will provide the Participant with credit for, and shall otherwise take into account, any dividends declared on the Corporation’s Common Stock during the Restricted Period. 

2. Vesting and Payment of Award.  

(a)     Restricted Period. Except as provided under paragraph 2, the Award shall be subject to forfeiture until the Participant becomes vested in such Award based on the level of achievement of the Performance Goals at the end of the Restricted Period as approved and authorized by the Committee, in each case as described in this Award Agreement. As used herein, the term “Restricted Period” shall mean the period of time beginning on the Grant Date and ending on the earlier of (i) the three (3)-year anniversary of the Grant Date or (ii) the date on which the Participant dies, terminates employment due to Permanent Disability, or has a Qualified Termination of Employment.  Unless vested in accordance with the foregoing, unvested Awards shall be forfeited upon the termination of a Participant’s employment with the Corporation and all Affiliates.

(b)     Payment of Awards. If the Participant remains continuously employed by the Corporation or an Affiliate through the Restricted Period, the Award shall vest at the end of the Restricted Period. Upon the vesting of such Award, the Committee shall determine the level of achievement of the Performance Goals as of the end of the Restricted Period and, based on such determination, the number of Performance Shares issuable to the Participant, if any, and the Corporation shall electronically register any such Performance Shares in the Participant’s name, provided that, notwithstanding paragraph 1 or any other provision herein to the contrary, the Committee, in its sole discretion, may elect to cause the Corporation to pay the Participant cash, in an amount equal to the Fair Market Value of such Performance Shares, in lieu of such registration of Performance Shares.  If the Restricted Period ends prior to the third anniversary of the Grant date pursuant to paragraph 2(a)(ii), the Committee shall, in its sole discretion, determine the level of achievement of the Performance Goals as of the end of the accelerated vesting date (in which case the Committee may make equitable adjustments in the Performance Goals to reflect the early termination) or deem the Award to be payable at the Target Amount (that is, 100% achievement of the Performance Goals).  In determining the number of Performance Shares issuable to the Participant, the Committee shall multiply (i) the Target Amount (taking into account any dividend declared during the Restricted Period pursuant to paragraph 1) by (ii) the percentage by which the Performance Goals have been achieved as of the end of the Restricted Period.  For purposes of example only, if the Target Amount consisted of 500 shares of Common Stock and the level of achievement of the Performance Goals was determined to be 120%, 600 Performance Shares would be issuable to Participant.  Notwithstanding the foregoing, no Performance Shares will be issued with respect to the Award if the Committee determines that the relevant level of achievement of the Performance Goals is less than ______%.

3. Administration. Any decision, interpretations or determinations made or actions taken by the Corporation, the Board or the Committee arising out of or in connection with the construction, administration, interpretation and effect of this Award Agreement or the 2014 Plan shall be within the sole and absolute discretion of the Corporation, the Board or the Committee, as the case may be, and shall be final and conclusive upon all persons.  

4. Governing Law. The 2014 Plan and this Award Agreement are each governed by and subject to the laws of the United States of America and the State of Texas. All questions pertaining to the construction, interpretation, regulation, validity and effect of the provisions of this Award Agreement and any rights under the 2014 Plan shall be determined in accordance with the laws of the State of Texas. 

5. Notices. Any notice to be given to the Corporation under this Award Agreement shall be addressed to the Corporation in care of its Chief Legal Officer at the Corporation’s then current corporate headquarters unless the Corporation, in writing or electronically, directs the Participant otherwise.  Any notice to be given to the Participant under the terms of this Award Agreement may be addressed to him or her at his or her address as it appears on the Corporation’s records, or at such other address as either party may hereafter designate in writing to the other party. 

6. Discretionary Nature of Award. The grant of the Award is a one-time benefit and does not create any contractual or other right to receive a grant of awards or benefits in lieu of awards in the future. Future grants, if any, and the terms thereof will be at the sole discretion of the Corporation. The Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy payment in lieu of notice, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.  

7. Successors. This Award Agreement shall be binding upon and inure to the benefit of any successor or assigns of the Corporation.  

8. Non-Transferability.  The Award granted under this Award Agreement shall not be transferable other than by will or the laws of descent and distribution upon the Participant’s death.

9. Amendments. The Committee may at any time alter or amend this Award Agreement to the extent (1) permitted or required by law, (2) permitted or required by the rules of any stock exchange on which the Common Stock or any other security of the Corporation is listed, and (3) permitted or required under applicable provisions of the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (including Rule 16b-3 thereof).  

10. For U.S. Participants Only. To the extent the Participant is a resident of the United States of America and has not previously signed a noncompete agreement for the benefit of the Corporation or its Affiliates, then the Participant has until the end of the one hundred twenty (120) day period beginning from the Grant Date to sign and return such a noncompete agreement in the form provided to such Participant by the Corporation. If the U.S. Participant does not sign and return such noncompete agreement on or before the end of such one hundred twenty (120) day period, then this Award Agreement and the grant of the Award shall not be binding on and shall be voidable by the Corporation, in which case neither this Award Agreement nor the Award shall have any further force or effect. 

11. Section 409A of the Code. The Award is intended to be exempt from section 409A of the Code because the value of the Award is included in the Participant’s income in the year in which the Award vests. 

12. Acceptance of Award Terms and Conditions. The Participant has until the end of the one hundred twenty (120) day period beginning from the Grant Date of this Award to sign and return this Award Agreement as evidence of the Participant’s acceptance of the terms and conditions of this Award. 

13. Invalidity and Enforceability. The provisions of this Award Agreement are severable and if one or more of the provisions of this Award Agreement shall be held invalid, illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nonetheless be binding and enforceable; provided, however, that to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so as to foster the intent of this Award Agreement and the 2014 Plan.

14. Participant Acknowledgment of Conditions. The Participant understands, acknowledges and agrees to the following conditions with respect to the Award granted to the Participant under this Award Agreement: 

(a)     No claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from termination of the Participant’s employment by the Corporation or an Affiliate of the Corporation (the “Employer”) (for any reason whatsoever and whether or not in breach of local labor laws) and in consideration of the grant of the Award, to which the Participant is otherwise not entitled, the Participant irrevocably agrees never to institute any claim against the Corporation or the Employer, waive his or her ability, if any, to bring any such claim, and releases the Corporation and the Employer from any such claim. 
 
(b)     In the event of termination of the Participant’s employment (whether or not in breach of local labor laws and except as otherwise explicitly provided in the Award Agreement), the Participant’s rights with respect to the Award, including with respect to the vesting thereof, will terminate effective as of the date that the Participant is no longer actively employed and will not be extended by any notice period mandated under local law (i.e., active employment would not include a period of “garden leave” or similar period pursuant to local law).  The Committee shall have the exclusive discretion to determine when the Participant is no longer actively employed for purposes of the Award. 
 
(c)     The right to receive Performance Shares is merely a contractual right under this Award Agreement and does not constitute actual shares of Common Stock, and therefore the Participant may not make and agrees not to make an election under section 83(b) of the Code with respect to the grant of the Award.  The Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding participation in the 2014 Plan or the Participant’s acquisition or sale of any of the Performance Shares issuable upon the vesting of the Award. Further, the Participant is advised to consult with his or her own advisors regarding participation in the 2014 Plan before taking any action related to the 2014 Plan. Regardless of any action the Corporation or the Employer takes with respect to any or all income tax (including federal, state and local taxes), social insurance, payroll tax, payment on account or other tax-related items related to the Participant’s participation in the 2014 Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the responsibility of the Participant and may exceed the amount actually withheld by the Corporation or the Employer. 

(d)     The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this Award Agreement (including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of Common Stock or details of the Award or any other entitlement to shares awarded, canceled, vested, unvested or outstanding (the “Data”) by and among, as applicable, the Participant’s Employer, the Corporation, and its Affiliates for the exclusive purpose of implementing, administering and managing the Participant’s participation in the 2014 Plan. 

(e)     The Participant understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the 2014 Plan, that these recipients may be located in the Participant’s country or elsewhere, and that the Participant’s country may have different data privacy laws and protections than the country or countries in which such recipients are located. The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. The Participant authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the 2014 Plan, including any requisite transfer of such Data as may be required to a broker, escrow agent or other third party with whom the Performance Shares, if any, received upon vesting of the Award may be deposited. The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the 2014 Plan. The Participant understands that he or she may, at any time, view Data, request additional information about the storage and processing of Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. 

(f)     The Corporation reserves the right to impose other requirements (including the execution of additional agreements or undertakings) on the Participant’s participation in the 2014 Plan, on the Award and on any shares of Common Stock acquired under the 2014 Plan, to the extent the Corporation determines it is necessary or advisable in order to comply with local law or facilitate the administration of the 2014 Plan. 

(g)     The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the 2014 Plan by electronic means. The Participant hereby consents to receive such documents by on-line delivery and agrees to participate in the 2014 Plan through an on-line or electronic system established and maintained by the Corporation or a third-party designated by the Corporation. 
 
(h)     The Participant certifies that he or she has received and read a copy of the 2014 Plan and understands and agrees to the terms, conditions and restriction set forth in the 2014 Plan, the provisions of this Award Agreement and all other applicable documents (including any country-specific terms applicable to the Participant’s Award). 

(i)     The Award will be subject to any policy adopted by the Corporation or the Committee relating to the recovery of such Award (including any Performance Shares issued, or any cash equivalent thereof paid, in connection therewith) to the extent it is subsequently determined that the Performance Goals were not actually achieved.

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

AZZ INCORPORATED

By _____________________________
Name: 
Title: 

PARTICIPANT:

________________________________
Name:

Appendix A

[To be determined by the Committee]

1Exhibit 4.2

 

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

THIS FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT is made as of August 26, 2014, by and among Invitae Corporation, a Delaware corporation (the “Company”), and each of the investors listed on Schedule A hereto, referred to hereinafter as the “Investors” and each individually as an “Investor.”

 

RECITALS

 

WHEREAS, certain of the Investors (the “Series F Investors”) are purchasing shares of the Company’s Series F Preferred Stock, $0.0001 par value per share (the “Series F Preferred Stock”), pursuant to that certain Series F Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”);

 

WHEREAS, certain of the Investors are (i) holders of the Company’s Series A Preferred Stock, $0.0001 par value per share (the “Series A Preferred Stock”), Series B Preferred Stock, $0.0001 par value per share (the “Series B Preferred Stock”), Series C Preferred Stock, $0.0001 par value per share (the “Series C Preferred Stock”), Series D Preferred Stock, $0.0001 par value per share (the “Series D Preferred Stock”) or Series E Preferred Stock, $0.0001 par value per share (the “Series E Preferred Stock”), and (ii) parties, together with the Company, to a Fourth Amended and Restated Investors’ Rights Agreement dated as of October 17, 2013 (the “Prior Agreement”); and

 

WHEREAS, in order to induce the Series F Investors to enter into the Purchase Agreement and consummate the purchase and sale of Series F Preferred Stock contemplated thereby, upon delivery of executed signature pages to this Agreement by (i) the Company, (ii) the holders of a majority of the Registrable Securities then outstanding (for this purpose, as defined in the Prior Agreement and determined as of immediately prior to the date hereof) and (iii) the Series F Investors participating in the Initial Closing (as defined in the Purchase Agreement), this Agreement shall supersede and replace the Prior Agreement.

 

NOW, THEREFORE, the parties hereby agree as follows:

 

1.                    Definitions.  For purposes of this Agreement: “Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.

 

“Common Stock” means shares of the Company’s common stock, $0.0001 par value per share.

 

“Damages” means any loss, damage, or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, or liability (or any action in respect thereof) arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final

 

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prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

 

“Derivative Securities” means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Excluded Registration” means (i) a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) 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 (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

 

“Form S-1” means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.

 

“Form S-3” means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits incorporation of substantial information by reference to other documents filed by the Company with the SEC.

 

“GAAP” means generally accepted accounting principles in the United States.

 

“Holder” means any holder of Registrable Securities who is a party to this Agreement.

 

“Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a natural person referred to herein.

 

“Initiating Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.

 

“IPO” means the Company’s first underwritten public offering of its Common Stock under the Securities Act.

 

“Key Employee” means any executive-level employee (including division director and vice president-level positions) as well as any employee who, either alone or in concert with others, develops, invents, programs, or designs any Company Intellectual Property (as defined in the Purchase Agreement).

 

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“Major Investor” means any Investor that, individually or together with such Investor’s Affiliates, holds at least 500,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

 

“New Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities; provided, however, that shares of Series F Preferred Stock sold pursuant to the Purchase Agreement as it may be amended from time to time are excluded from this definition.

 

“Person” means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

“Preferred Stock” means, collectively, shares of the Series A Preferred Stock, shares of the Series B Preferred Stock, shares of the Series C Preferred Stock, shares of the Series D Preferred Stock, shares of the Series E Preferred Stock and shares of the Series F Preferred Stock.

 

“Registrable Securities” means the following:  (i) the Common Stock issuable or issued upon conversion of the Preferred Stock; and (ii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in clause (i) above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Section 6.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Section 2.13 of this Agreement.

 

“Registrable Securities then outstanding” means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.

 

“Restricted Securities” means the securities of the Company required to bear the legend set forth in Section 2.12(b) hereof.

 

“SEC” means the Securities and Exchange Commission.

 

“SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

 

“SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of

 

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counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as provided in Section 2.6.

 

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

 

2.1                               Demand Registration.

 

(a)                                 Form S-1 Demand.  If at any time after the earlier of (i) three (3) years after the date of this Agreement or (ii) one hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from Holders of twenty-five percent (25%) of the Registrable Securities then outstanding that the Company file a Form S-1 registration statement with respect to the Registrable Securities then outstanding if the anticipated aggregate offering price, net of Selling Expenses, is not less than $5 million, then the Company shall (i) within ten (10) days after the date such request is given, give notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Sections 2.1 (c) and (d) and Section 2.3.

 

(b)                                 Form S-3 Demand.  If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders of at least ten percent (10%) of the Registrable Securities then outstanding that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $2 million, then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Sections 2.1 (c) and (d) and Section 2.3.

 

(c)                                  Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Section 2.1 a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Company’s Board of Directors (the “Board”) it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such

 

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filing, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly, for a period of not more than sixty (60) days after the request of the Initiating Holders is given; provided, however, that the Company may not invoke this right more than once in any twelve (12) month period; and provided further that the Company shall not register any securities for its own account or that of any other stockholder during such sixty (60) day period other than an Excluded Registration.

 

(d)                                 The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(a) (i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; (ii) after the Company has effected two registrations pursuant to Section 2.1(a); or (iii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 2.1(b).  The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(b) (i) during the period that is thirty (30) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or (ii) if the Company has effected two registrations pursuant to Section 2.1(b) within the twelve (12) month period immediately preceding the date of such request.  A registration shall not be counted as “effected” for purposes of this Section 2.1(d) until such time as the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one demand registration statement pursuant to Section 2.6, in which case such withdrawn registration statement shall be counted as “effected” for purposes of this Section 2.1(d).

 

2.2                               Company Registration.  If the Company proposes to register (including, for this purpose, a registration effected by the Company for stockholders other than the Holders) any of its Common Stock under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder notice of such registration.  Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of Section 2.3, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration.  The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration.  The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Section 2.6.

 

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2.3                               Underwriting Requirements.

 

(a)                                 If, pursuant to Section 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Section 2.1, and the Company shall include such information in the Demand Notice.  The underwriter(s) will be selected by the Initiating Holders, subject only to the reasonable approval of the Company.  In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting.  Notwithstanding any other provision of this Section 2.3, if the managing underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting.  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.

 

(b)                                 In connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Section 2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company.  If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering.  If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders.  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.  Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, or (ii) the

 

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number of Registrable Securities included in the offering be reduced below twenty-five percent (25%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s securities are included in such offering.  For purposes of the provision in this Section 2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such “selling Holder,” as defined in this sentence.

 

(c)                                  For purposes of Section 2.1, a registration shall not be counted as “effected” if, as a result of an exercise of the underwriter’s cutback provisions in Section 2.3(a), fewer than fifty percent (50%) of the total number of Registrable Securities that Holders have requested to be included in such registration statement are actually included.

 

2.4                               Obligations of the Company.  Whenever required under this Section 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

(a)                                 prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however, that such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration;

 

(b)                                 prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

 

(c)                                  furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

 

(d)                                 use its commercially reasonable 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 selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of

 

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process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

 

(e)                                  in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

 

(f)                                   use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

 

(g)                                  provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

 

(h)                                 promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

 

(i)                                     notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

 

(j)                                    after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus.

 

2.5                               Furnish Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder’s Registrable Securities.

 

2.6                               Expenses of Registration.  All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to Section 2, including all registration, filing, and qualification fees; printers’ and accounting fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements, not to exceed $30,000, of one counsel for the selling Holders (“Selling Holder Counsel”), shall be borne and paid by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 2.1 if the

 

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registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant to Section 2.1(a) or Section 2.1(b), as the case may be; provided further that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to Section 2.1(a) or Section 2.1(b).  All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

 

2.7                               Delay of Registration.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.

 

2.8                               Indemnification.  If any Registrable Securities are included in a registration statement under this Section 2:

 

(a)                                 To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration.

 

(b)                                 To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written

 

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information furnished by or on behalf of such selling Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(b) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under Sections 2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

 

(c)                                  Promptly after receipt by an indemnified party under this Section 2.8 of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.8, give the indemnifying party notice of the commencement thereof.  The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that 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 action.  The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 2.8, to the extent that such failure materially prejudices the indemnifying party’s ability to defend such action.  The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 2.8.

 

(d)                                 To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 2.8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this Section 2.8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Section 2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect 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

 

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untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case, (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event shall a Holder’s liability pursuant to this Section 2.8(d), when combined with the amounts paid or payable by such Holder pursuant to Section 2.8(b), exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder.

 

(e)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 

(f)                                   Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this Section 2.8 shall survive the completion of any offering of Registrable Securities in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.

 

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

 

(a)                                 make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO;

 

(b)                                 use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

 

(c)                                  furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the

 

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Company; and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

 

2.10                        Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company that (i) would provide to such holder the right to include securities in any registration on other than either a pro rata basis with respect to the Registrable Securities or on a subordinate basis after all Holders have had the opportunity to include in the registration and offering all shares of Registrable Securities that they wish to so include or (ii) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder; provided that this limitation shall not apply to any additional Investor who becomes a party to this Agreement in accordance with Section 6.10.

 

2.11                        “Market Stand-off” Agreement.  Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company for its own behalf of shares of its Common Stock or any other equity securities under the Securities Act on a registration statement on Form S-1 or Form S-3, and ending on the date specified by the Company and the managing underwriter (such period not to exceed (x) one hundred eighty (180) days in the case of the IPO, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto) or (y) ninety (90) days in the case of any registration other than the IPO, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock (whether such shares or any such securities are then owned by the Holder or are thereafter acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise.  The foregoing provisions of this Section 2.11:  (a) shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement; (b) with respect to the IPO, shall be applicable to the Holders only if all officers and directors of the Company and all stockholders individually owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock) are subject to the same restrictions; (c) with respect to

 

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any registration other than the IPO, shall only be applicable to directors and officers of the Company and their respective Affiliates, and then only if all officers and directors of the Company are subject to the same restrictions; and (d) shall not be applicable with respect to shares of Common Stock acquired in the IPO, in any registration other than the IPO or in the open market after effectiveness of the registration statement for the IPO or any registration other than the IPO, provided that with respect to any sales or other arrangements involving shares of Common Stock during any applicable lock-up period, no filing under the Exchange Act or otherwise or any public announcement by the Holder or any director of the Company affiliated with such Holder shall be required or shall be voluntarily made in connection therewith, other than any required beneficial ownership filings under Section 13 of the Exchange Act.  The underwriters in connection with such registration are intended third-party beneficiaries of this Section 2.11 and shall have the right, power, and authority to enforce the provisions hereof as though they were a party hereto.  Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 2.11 or that are necessary to give further effect thereto.  Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject to such agreements, based on the number of shares subject to such agreements.

 

2.12                        Restrictions on Transfer.

 

(a)                                 The Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act.  A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement.

 

(b)                                 Each certificate or instrument representing (i) the Preferred Stock, (ii) the Registrable Securities, and (iii) any other securities issued in respect of the securities referenced in clauses (i) and (ii), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Section 2.12(c)) be stamped or otherwise imprinted with a legend substantially in the following form:

 

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

 

THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT

 

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BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this Section 2.12.

 

(c)                                  The holder of each certificate representing Restricted Securities, by acceptance thereof, agrees to comply in all respects with the provisions of this Section 2.  Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the Company of such Holder’s intention to effect such sale, pledge, or transfer.  Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company.  The Company will not require such a legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144 or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 2.12.  Each certificate or instrument evidencing the Restricted Securities transferred as above provided shall bear, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Section 2.12(b), except that such certificate shall not bear such restrictive legend 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.

 

2.13                        Termination of Registration Rights.  The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Section 2.1 or Section 2.2 shall terminate upon the earliest to occur of:

 

(a)                                 the closing of a Deemed Liquidation Event, as such term is defined in the Company’s Certificate of Incorporation; and

 

(b)                                 the fifth anniversary of the IPO.

 

3.                    Information and Observer Rights.

 

3.1                               Delivery of Financial Statements.  The Company shall deliver to each Major Investor:

 

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(a)                                 as soon as practicable, but in any event within one hundred fifty (150) days after the end of each fiscal year of the Company, (i) a balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and a comparison between (x) the actual amounts as of and for such fiscal year and (y) the comparable amounts for the prior year and as included in the Budget (as defined in Section 3.1(e)) for such year, with an explanation of any material differences between such amounts and a schedule as to the sources and applications of funds for such year, and (iii) a statement of stockholders’ equity as of the end of such year, all such financial statements to be audited and certified by independent public accountants of nationally recognized standing selected by the Board;

 

(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, unaudited statements of income and of cash flows for such fiscal quarter, and an unaudited balance sheet and a statement of stockholders’ equity as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP);

 

(c)                                  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, 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 Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock options and stock options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the Major Investors to calculate their respective percentage equity ownership in the Company, and certified by the chief financial officer or chief executive officer of the Company as being true, complete, and correct;

 

(d)                                 as soon as practicable, but in any event within thirty (30) days of the end of each month, an unaudited income statement and statement of cash flows for such month, and an unaudited balance sheet and statement of stockholders’ equity as of the end of such month, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP);

 

(e)                                  as soon as practicable, but in any event thirty (30) days before the end of each fiscal year, a budget and business plan for the next fiscal year (collectively, the “Budget”), approved by the Board and prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets prepared by the Company;

 

(f)                                   with respect to the financial statements called for in Section 3.1(a), Section 3.1(b) and Section 3.1(d), an instrument executed by the chief financial officer and chief executive officer of the Company certifying that such financial statements were prepared in accordance with GAAP consistently applied with prior practice for earlier periods (except as

 

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otherwise set forth in Section 3.1(b) and Section 3.1(d)) and fairly present the financial condition of the Company and its results of operation for the periods specified therein; and

 

(g)                                  such other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major Investor may from time to time reasonably request; provided, however, that the Company shall not be obligated under this Section 3.1 to provide information (i) that the Company reasonably determines in good faith to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or (ii) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

 

If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

 

Notwithstanding anything else in this Section 3.1 to the contrary, the Company may cease providing the information set forth in this Section 3.1 during the period starting with the date thirty (30) days before the Company’s good-faith estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related offering; provided that the Company’s covenants under this Section 3.1 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.

 

3.2                               Inspection.  The Company shall permit each Major Investor at such Major Investor’s expense, to visit and inspect the Company’s properties; examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor; provided, however, that the Company shall not be obligated pursuant to this Section 3.2 to provide access to any information (i) that it reasonably and in good faith considers to be a trade secret, (ii) confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company), or (iii) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

 

3.3                               Termination of Information.  The covenants set forth in Section 3.1 and Section 3.2 shall terminate and be of no further force or effect upon the earliest of:  (i) immediately before the consummation of the IPO, or (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon a Deemed Liquidation Event, as such term is defined in the Company’s Certificate of Incorporation, pursuant to which the Investors receive only cash and/or marketable securities.

 

3.4                               Confidentiality.  Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 3.4 by such Investor), (b) is or has been

 

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independently developed or conceived by the Investor without use of the Company’s confidential information, or (c) is or has been made known or disclosed to the Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Section 3.4; (iii) to any existing or prospective Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, provided that the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

 

3.5                               Observer Rights.

 

(a)                                 As long as Thomas, McNerney & Partners II, L.P. together with its affiliates (collectively, “TMP”) holds at least fifty percent (50%) of the shares of Series A Preferred Stock purchased by TMP from the Company, the Company shall invite a representative of TMP to attend all meetings of the Board in a non-voting capacity and, in this respect, shall give such representative copies of all notices, minutes, consents and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided that such representative shall agree to hold in confidence and trust all information so provided; and provided further that the Company reserves the right to exclude such representative from access to any of such materials or meetings or portions thereof if and to the extent that (i) in the good faith judgment of a majority of the directors of the Company after obtaining the advice of counsel such exclusion is reasonably necessary to preserve the attorney-client privilege, (ii) in the good faith judgment of a majority of the directors of the Company, such access would materially impair the due consideration by the Board of any matter, or (iii) any third party has, with respect to materials or information to be distributed to or considered by the Board, requested or required that such information not be shared beyond a group which does not include such representative.  The Company shall reimburse such TMP representative for all reasonable out-of-pocket travel expenses incurred (consistent with the Company’s travel policy) in connection with attending meetings of the Board.

 

(b)                                 With respect to any Holder of Series C Preferred Stock originally purchased from the Company (an “Original Series C Investor”) which continues to hold (together with its Affiliates) at least 2,000,000 shares of Series C Preferred Stock (as adjusted for stock splits, recapitalizations, etc.), other than TMP (which is addressed in Section 3.5(a) above) as well as any other Original Series C Investor for so long as such Original Series C Investor has the right (considered together with its Affiliates and whether pursuant to a contractual right, ownership of the requisite shares, or otherwise) to have its nominee elected to the Board, the Company shall invite a representative of such Original Series C Investor to attend all meetings of the Board in a non-voting capacity and, in this respect, shall give such representative copies of all notices, minutes, consents and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided, that such representative shall agree to hold in confidence and trust all information so provided; provided, further, that the

 

17

 

Company reserves the right to exclude such representative from access to any of such materials or meetings or portions thereof if and to the extent that (i) in the good faith judgment of a majority of the directors of the Company after obtaining the advice of counsel such exclusion is reasonably necessary to preserve the attorney-client privilege, (ii) in the good faith judgment of a majority of the directors of the Company, such access would materially impair the due consideration by the Board of any matter, or (iii) any third party has, with respect to materials or information to be distributed to or considered by the Board, requested or required that such information not be shared beyond a group which does not include such representative; and provided, finally, that the rights of any such holder pursuant to this Section 3.5(b) shall terminate in the event of any of the following:  (x) such Original Series C Investor (considered for this purpose together with all of its Affiliates) fails to participate in each additional financing of the Company on a pro rata basis (assuming and/or to the extent that such participation is made available to such Original Series C Investor with advance notice and a reasonable opportunity to participate, and “pro rata basis” is determined approximately in accordance with Section 4); or (y) an IPO.

 

(c)                                  With respect to the Wellington Investors (defined below), as long as the Wellington Investors hold at least fifty percent (50%) of the shares of Series F Preferred Stock purchased from the Company, the Company shall invite one representative of the Wellington Investors to attend all meetings of the Board in a non-voting capacity and, in this respect, shall give such representative copies of all notices, minutes, consents and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided, that such representative shall agree to hold in confidence and trust all information so provided; provided, further, that the Company reserves the right to exclude such representative from access to any of such materials or meetings or portions thereof if and to the extent that (i) in the good faith judgment of a majority of the directors of the Company after obtaining the advice of counsel such exclusion is reasonably necessary to preserve the attorney-client privilege, (ii) in the good faith judgment of a majority of the directors of the Company, such access would materially impair the due consideration by the Board of any matter, or (iii) any third party has, with respect to materials or information to be distributed to or considered by the Board, requested or required that such information not be shared beyond a group which does not include such representative; and provided, finally, that the rights of any such holder pursuant to this Section 3.5(c) shall terminate in the event of an IPO.

 

4.                    Rights to Future Stock Issuances.

 

4.1                               Right of First Offer.  Subject to the terms and conditions of this Section 4.1 and applicable securities laws, if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor.  A Major Investor shall be entitled to apportion the right of first offer hereby granted to it among itself and its Affiliates in such proportions as it deems appropriate.

 

(a)                                 The Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities.

 

18

 

(b)                                 By notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by such Major Investor bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and other Derivative Securities). At the expiration of such twenty (20) day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each, a “Fully Exercising Investor”) of any other Major Investor’s failure to do likewise.  During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares.  The closing of any sale pursuant to this Section 4.1(b) shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to Section 4.1(c).

 

(c)                                  If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Section 4.1(b), the Company may, during the ninety (90) day period following the expiration of the periods provided in Section 4.1(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice.  If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this Section 4.1.

 

(d)                                 The right of first offer in this Section 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Company’s Certificate of Incorporation), except that for purposes of this Section 4.1(d), Exempted Securities shall not include securities that are otherwise excluded from the anti-dilution provisions of the Company’s Certificate of Incorporation by consent of the holders of a majority of the outstanding Preferred Stock and thus considered Exempted Securities under the Company’s Certificate of Incorporation (i.e., pursuant to Section 4.4.1(d)(xi) of Part B of Article Fourth of the Company’s Certificate of Incorporation as in effect on the date hereof); and (ii) shares of Common Stock issued in the IPO.

 

(e)                                  Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this Section 4.1, the Company may elect to give notice to the Major Investors within thirty (30) days after the issuance of New Securities.  Such notice shall

 

19

 

describe the type, price, and terms of the New Securities.  Each Major Investor shall have twenty (20) days from the date notice is given to elect to purchase up to the number of New Securities that would, if purchased by such Major Investor, maintain such Major Investor’s percentage-ownership position, calculated as set forth in Section 4.1(b) before giving effect to the issuance of such New Securities.  The closing of such sale shall occur within sixty (60) days of the date notice is given to the Major Investors.

 

4.2                               Termination.  The covenants set forth in Section 4.1 shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon a Deemed Liquidation Event, as such term is defined in the Company’s Certificate of Incorporation, whichever event occurs first.

 

5.                    Additional Covenants.

 

5.1                               Insurance.  Unless waived by the Board, the Company shall use its commercially reasonable efforts to maintain, with financially sound and reputable insurers, Directors and Officers liability insurance and term “key-person” insurance on Randal W. Scott, each in an amount and on terms and conditions satisfactory to the Board.  The key-person policy shall name the Company as loss payee, and neither policy shall be cancelable by the Company without prior approval by the Board.

 

5.2                               Employee Agreements.  The Company will cause each person now or hereafter employed by it or by any subsidiary (or engaged by the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or trade secrets to enter into a nondisclosure and proprietary rights assignment agreement.  In addition, the Company shall not amend, modify, terminate, waive, or otherwise alter, in whole or in part, any of the above-referenced agreements or any restricted stock agreement between the Company and any employee, without the consent of the Board.

 

5.3                               Employee Stock.  Unless otherwise approved by the Board, all future employees and consultants of the Company who purchase, receive options to purchase, or receive awards of shares of the Company’s capital stock after the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued employment or service, and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months, and (ii) a market stand-off provision substantially similar to that in Section 2.11.  In addition, unless otherwise approved by the Board, the Company shall retain a “right of first refusal” on employee transfers until the Company’s IPO and shall have the right to repurchase unvested shares at cost upon termination of employment of a holder of restricted stock.

 

5.4                               Board Matters.  Unless otherwise determined by the vote of a majority of the directors then in office, the Board shall meet at least quarterly in accordance with an agreed-upon schedule.  The Company shall reimburse the nonemployee directors for all reasonable out-of-pocket travel expenses incurred (consistent with the Company’s travel policy) in connection with attending meetings of the Board.  The Company shall cause to be established, as soon as

 

20

 

practicable after such request, and will maintain, an audit and compensation committee, each of which shall consist solely of non-management directors.  Each non-employee director shall be entitled in such person’s discretion to be a member of any Board committee.

 

5.5                               Successor Indemnification.  If the Company or any of its successors or assignees consolidates with or merges into any other Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members of the Board as in effect immediately before such transaction, whether such obligations are contained in the Company’s Bylaws, its Certificate of Incorporation, or elsewhere, as the case may be.

 

5.6                               Termination of Covenants.  The covenants set forth in this Section 5, except for Section 5.5, shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act or (iii) upon a Deemed Liquidation Event, as such term is defined in the Company’s Certificate of Incorporation, whichever event occurs first.

 

6.                    Miscellaneous.

 

6.1                               Successors and Assigns.  The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; or (iii) after such transfer, holds at least 250,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations, and other recapitalizations); provided, however, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Section 2.11.  For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member shall be aggregated together and with those of the transferring Holder; provided further that all transferees who would not qualify individually for assignment of rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement.  The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

 

21

 

6.2                               Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of California, regardless of the laws that might otherwise govern under applicable principles of conflicts of law.

 

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

 

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

 

6.5                               Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt.  All communications shall be sent to the respective parties at their addresses as set forth on Schedule A hereto, or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this Section 6.5.  If notice is given to the Company, a copy shall also be sent to Mike Hird, Pillsbury Winthrop Shaw Pittman LLP, 12255 El Camino Real, Suite 300, San Diego, CA 92130-4088, Fax: (858) 509-4010.

 

6.6                               Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of a majority of the Registrable Securities then outstanding; provided that the Company may in its sole discretion waive compliance with Section 2.12(c) (and the Company’s failure to object promptly in writing after notification of a proposed assignment allegedly in violation of Section 2.12(c) shall be deemed to be a waiver); and provided further that any provision hereof may be waived by any waiving party on such party’s own behalf, without the consent of any other party.  Notwithstanding the foregoing: (a) this Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same fashion, it being agreed that a waiver, amendment or termination of the provisions of Section 4 with respect to a particular transaction or financing shall be deemed to apply to all Investors in the same fashion if such waiver, amendment or termination does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company, purchase securities in such transaction or financing; provided, however, that if any Investor, individually or together with such Investor’s Affiliates, holding at least 2,500,000 shares of Registrable Securities (as adjusted for any stock

 

22

 

split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof) is allowed to participate in any such transaction or financing, then each other Investor, individually or together with such Investor’s Affiliates, holding at least 2,500,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof) will be offered the opportunity to participate on the same basis (although proportionate to their respective holdings of Registrable Securities); (b) the provisions of Section 6.9 may not be amended or waived without the prior written consent of the Wellington Investors holding a majority of the Registrable Securities then outstanding and held by the Wellington Investors; and (c) the proviso in the foregoing clause (a) regarding participation in financings may not be amended without the consent of each Investor holding (together with its Affiliates) at least 2,500,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).  The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination, or waiver.  Any amendment, termination, or waiver effected in accordance with this Section 6.6 shall be binding on all parties hereto, regardless of whether any such party has consented thereto.  No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

 

6.7                               Severability.  In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

 

6.8                               Aggregation of Stock.  All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement (including, without limitation, status as a Major Investor) and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

 

6.9                               Wellington.  Notwithstanding any provision herein to the contrary:  (a) each “Wellington Investor” (meaning an Investor that is an advisory or subadvisory client of Wellington Management Company, LLP, and any affiliated or successor investment advisor or subadvisor thereof to the Wellington Investors, or a transferee of Registrable Securities held by such an Investor) shall be deemed to be an Affiliate of each other Wellington Investor; and (b) an entity that is an Affiliate of a Wellington Investor shall not, solely by virtue thereof, be deemed to be an Affiliate of any other Wellington Investor unless such entity is a Wellington Investor (and, for the avoidance of doubt, an Affiliate of such entity shall not be deemed an Affiliate of any Wellington Investor solely by virtue of being an Affiliate of such entity).

 

6.10                        Additional Investors.  Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company’s Preferred Stock after the date hereof, whether pursuant to the Purchase Agreement or otherwise, any purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and delivering an

 

23

 

additional counterpart signature page to this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder.  No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.

 

6.11                        Entire Agreement.  This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

 

6.12                        Costs of Enforcement.  If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

 

6.13                        Delays or Omissions.  No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to 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.  All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

6.14                        Acknowledgment.  The Company acknowledges that the Investors are in the business of venture capital investing and therefore review the business plans and related proprietary information of many enterprises, including enterprises which may have products or services which compete directly or indirectly with those of the Company.  Nothing in this Agreement shall preclude or in any way restrict the Investors from investing or participating in any particular enterprise whether or not such enterprise has products or services which compete with those of the Company.

 

6.15                        Prior Agreement Superseded.  Upon delivery of executed signature pages to this Agreement by: (i) the Company; (ii) the holders of a majority of the Registrable Securities then outstanding (for this purpose, as defined in the Prior Agreement and determined as of immediately prior to the date hereof); and (iii) the Series F Investors participating in the Initial Closing (as defined in the Purchase Agreement), this Agreement shall supersede and replace the Prior Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

24

 

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

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
INVITAE   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Randal W. Scott
    
	
 
    	
 
    	
Randal   W. Scott
    
	
 
    	
 
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
458   Brannan Street
    
	
 
    	
San   Francisco, CA 94107
    
	
 
    	
Facsimile:   (415) 520-9486
    
	
 
    	
E-mail:   randy.scott@invitae.com
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
HAWKES BAY MASTER INVESTORS
    
	
 
    	
(CAYMAN) LP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Wellington Management Company, LLP, as investment adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven M. Hoffman
    
	
 
    	
Name:
    	
Steven M. Hoffman
    
	
 
    	
Its:
    	
Vice President and Counsel
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
NORTH RIVER INVESTORS (BERMUDA) L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Wellington Management Company, LLP, as investment adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven M. Hoffman
    
	
 
    	
Name:
    	
Steven M. Hoffman
    
	
 
    	
Its:
    	
Vice President and Counsel
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
NORTH RIVER PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Wellington Management Company, LLP, as investment adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven M. Hoffman
    
	
 
    	
Name:
    	
Steven M. Hoffman
    
	
 
    	
Its:
    	
Vice President and Counsel
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
SALTHILL INVESTORS (BERMUDA) L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Wellington Management Company, LLP, as investment adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven M. Hoffman
    
	
 
    	
Name:
    	
Steven M. Hoffman
    
	
 
    	
Its:
    	
Vice President and Counsel
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
SALTHILL PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Wellington Management Company, LLP, as investment adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven M. Hoffman
    
	
 
    	
Name:
    	
Steven M. Hoffman
    
	
 
    	
Its:
    	
Vice President and Counsel
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
ORBIMED PRIVATE INVESTMENTS V, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
OrbiMed Capital GP V LLC
    
	
 
    	
Its: 
    	
General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
OrbiMed Advisors LLC
    
	
 
    	
Its:
    	
Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carl Gordon
    
	
 
    	
Name:
    	
Carl Gordon
    
	
 
    	
Title: 
    	
Member
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
DECHENG CAPITAL CHINA LIFE SCIENCES USD FUND I, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Xiangmin Cui
    
	
 
    	
 
    	
Xiangmin Cui, Managing Director
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
ROCK SPRINGS CAPITAL MASTER FUND LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Rock Springs GP LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Graham McPhail
    
	
 
    	
Name:
    	
Graham McPhail
    
	
 
    	
Title: 
    	
Member/Authorized Signatory
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
DEERFIELD SPECIAL SITUATIONS FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Deerfield Mgmt, L.P.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
J.E. Flynn Capital, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Clark
    
	
 
    	
 
    	
David J. Clark
    
	
 
    	
 
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
DEERFIELD SPECIAL SITUATIONS INTERNATIONAL MASTER   FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Deerfield Mgmt, L.P.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
J.E. Flynn Capital, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Clark
    
	
 
    	
 
    	
David J. Clark
    
	
 
    	
 
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers (he Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below. which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
PERCEPTIVE LIFE SCIENCES   MASTER FUND, LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James Mannix
    
	
 
    	
 
    	
James Mannix
    
	
 
    	
Title: 
    	
C.O.O.
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
TITAN PERC LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Darren Ross
    
	
 
    	
 
    	
Darren Ross
    
	
 
    	
Title: 
    	
Director
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
BROE HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Claude Pumilia
    
	
 
    	
 
    	
Claude Pumilia
    
	
 
    	
 
    	
Chief Financial Officer and
    
	
 
    	
 
    	
Chief Operating Officer
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to  which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
BAKER BROTHERS LIFE   SCIENCES, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
BAKER BROS. ADVISORS LP,
    
	
 
    	
 
    	
management company and investment adviser to Baker Brothers Life Sciences, L.P., pursuant   to authority granted to it by Baker Brothers Life Sciences Capital, L.P.,   general partner to Baker Brothers Life Sciences, L.P., and not as the general   partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Scott Lessing
    
	
 
    	
 
    	
Scott Lessing, President
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
14159, L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
BAKER BROS. ADVISORS LP,
    
	
 
    	
 
    	
management company and   investment adviser to 14159, L.P., pursuant   to authority granted to it by 14159 Capital, L.P., general partner to 14159,   L.P., and not as the general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Scott Lessing
    
	
 
    	
Scott Lessing, President
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
667, L.P. (account #1)
    
	
 
    	
 
    
	
 
    	
By: 
    	
BAKER BROS. ADVISORS LP,
    
	
 
    	
 
    	
management company and investment adviser to 667, L,P., pursuant to authority granted   to it by Baker Biotech Capital, L.P., general partner to 667, L.P., and not   as the general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Scott Lessing
    
	
 
    	
 
    	
Scott Lessing, President
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

 

	
 
    	
667, L.P. (account #2)
    
	
 
    	
 
    
	
 
    	
By: 
    	
BAKER BROS. ADVISORS LP,
    
	
 
    	
 
    	
management company and investment adviser to 667, L,P., pursuant to authority granted   to it by Baker Biotech Capital, L.P., general partner to 667, L.P., and not   as the general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Scott Lessing
    
	
 
    	
 
    	
Scott Lessing, President
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all  counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
REDMILE CAPITAL OFFSHORE FUND   II, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeremy Green
    
	
 
    	
 
    	
Jeremy Green
    
	
 
    	
 
    	
Managing Member of the Investment Manager
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
REDMILE PRIVATE INVESTMENTS I, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeremy Green
    
	
 
    	
 
    	
Jeremy Green
    
	
 
    	
 
    	
Managing Member of the GP and/or Management   Company
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26,  2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the  “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
REDMILE PRIVATE INVESTMENTS   I AFFILIATES, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jeremy Green
    
	
 
    	
 
    	
Jeremy Green
    
	
 
    	
 
    	
Managing Member of the GP and/or Management   Company
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
REDMILE SPECIAL OPPORTUNITIES FUND, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeremy Green
    
	
 
    	
 
    	
Jeremy Green
    
	
 
    	
 
    	
Managing Member of the Investment Manager
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
CASDIN PARTNERS MASTER FUND, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Casdin Partners, GP, LLC
    
	
 
    	
Its:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eli Casdin
    
	
 
    	
Name:
    	
Eli Casdin
    
	
 
    	
Its:
    	
Managing Member
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
THOMAS, MCNERNEY & PARTNERS II, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Thomas, McNerney & Partners II, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Aguiar
    
	
 
    	
Name:
    	
Eric Aguiar
    
	
 
    	
Title:
    	
Manager
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
TMP ASSOCIATES II, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Thomas, McNerney & Partners II, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Aguiar
    
	
 
    	
Name:
    	
Eric Aguiar
    
	
 
    	
Title:
    	
Manager
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
TMP NOMINEE II, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Aguiar
    
	
 
    	
Name:
    	
Eric Aguiar
    
	
 
    	
Title:
    	
Manager
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
/s/ Randal W. Scott
    
	
 
    	
Randal W. Scott
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: August 26, 2014

 

	
 
    	
GENOMIC HEALTH, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kim Popovits
    
	
 
    	
Name:
    	
Kim Popovits
    
	
 
    	
Title:
    	
CEO
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
BLACKROCK GLOBAL ALLOCATION FUND, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    
				

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
BLACKROCK GLOBAL ALLOCATION V.I. FUND OF BLACKROCK   VARIABLE SERIES FUNDS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
BLACKROCK GLOBAL ALLOCATION
    
	
 
    	
PORTFOLIO OF BLACKROCK SERIES FUND, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
BLACKROCK GLOBAL ALLOCATION FUND (AUSTRALIA)
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Manager for BlackRock Investment Management (Australia)   Limited, the Responsible Entity of BlackRock Global Allocation Fund   (Australia)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
MASSMUTUAL SELECT BLACKROCK GLOBAL ALLOCATION FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
JNL/BLACKROCK GLOBAL ALLOCATION FUND OF JNL SERIES   TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
BLACKROCK GLOBAL FUNDS — GLOBAL ALLOCATION FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
BLACKROCK GLOBAL FUNDS — GLOBAL DYNAMIC EQUITY FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
AZL BLACKROCK GLOBAL ALLOCATION FUND, A SERIES OF   ALLIANZ VARIABLE INSURANCE PRODUCTS TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
Its:
    	
Investment Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
BLACKROCK GLOBAL ALLOCATION COLLECTIVE FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Institutional Trust Company, N.A.
    
	
 
    	
Its:
    	
Not in its individual capacity but as Trustee of the BlackRock Global   Allocation Collective Fund
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Clayton
    
	
 
    	
Name:
    	
David Clayton
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 7, 2014

 

	
 
    	
667, L.P. (account #1)
    
	
 
    	
 
    
	
 
    	
By:
    	
BAKER BROS. ADVISORS LP, management   company and investment adviser to 667,   L.P., pursuant to authority granted to it by Baker Biotech,   Capital, L.P., general partner to 667, L.P., and not as the general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Lessing
    
	
 
    	
 
    	
Scott Lessing, President
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 7, 2014

 

	
 
    	
667, L.P. (account #2)
    
	
 
    	
 
    
	
 
    	
By:
    	
BAKER BROS. ADVISORS LP, management   company and investment adviser to 667,   L.P., pursuant to authority granted to it by Baker Biotech   Capital, L.P., general partner to 667, L.P., and not as the general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Lessing
    
	
 
    	
 
    	
Scott Lessing, President
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 7, 2014

 

	
 
    	
BAKER BROTHERS LIFE SCIENCES, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
BAKER BROS. ADVISORS LP, management   company and investment adviser to Baker Brothers   Life Sciences, L.P., pursuant to authority granted to it by Baker   Brothers Life Sciences Capital L.P., general partner to Baker Brothers Life   Sciences, L.P., and not as the general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Lessing
    
	
 
    	
 
    	
Scott Lessing, President
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

ADDITIONAL SIGNATURE PAGE TO

INVITAE CORPORATION

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

DATED AS OF AUGUST 26, 2014

 

The undersigned hereby executes and delivers the Fifth Amended and Restated Investors’ Rights Agreement (the “Agreement”) to which this additional signature page is attached effective as the date set forth below, which, together with all counterparts thereto and signature pages of the other parties with respect thereto, shall constitute one and the same document in accordance with the terms of such Agreement.

 

Effective Date: October 9, 2014

 

	
 
    	
GENESYS VENTURES II LP
    
	
 
    	
 
    
	
 
    	
By its general partner, Genesys General Partner LP
    
	
 
    	
 
    
	
 
    	
By its general partner, Genesys General Partner Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kelly Holman
    
	
 
    	
Name:
    	
Kelly Holman
    
	
 
    	
Its:
    	
A/S
    

 

[Signature Page to Investors’ Rights Agreement]

 

 

SCHEDULE A

 

INVESTORS

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
667,   L.P., (account #1)

c/o   Baker Bros. Advisors LP

 
    	
 
    	
519,040   Series D Preferred

636,078   Series E Preferred

756,292   Series F Preferred
    
	
 
    	
 
    	
 
    
	
667,   L.P., (account #2)

c/o   Baker Bros. Advisors LP

 
    	
 
    	
363,200   Series D Preferred

445,098   Series E Preferred

535,374   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Baker   Brothers Life Sciences, L.P.

c/o   Baker Bros. Advisors LP

 
    	
 
    	
6,944,640   Series D Preferred

8,510,588   Series E Preferred

11,153,380   Series F Preferred
    
	
 
    	
 
    	
 
    
	
14159, L.P.

c/o Baker Bros. Advisors LP

 
    	
 
    	
173,120   Series D Preferred

212,157   Series E Preferred

54,954   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Thomas,   McNerney & Partners II, L.P.

 
    	
 
    	
11,206,817   Series A Preferred

5,190,524   Series C Preferred

3,222,221   Series E Preferred

2,478,250   Series F Preferred
    
	
 
    	
 
    	
 
    
	
TMP   Nominee II, LLC

 
    	
 
    	
117,046   Series A Preferred

54,210   Series C Preferred

33,660   Series E Preferred

12,500   Series F Preferred
    
	
 
    	
 
    	
 
    
	
TMP   Associates II, L.P.

 
    	
 
    	
39,773   Series A Preferred

18,421   Series C Preferred

12,092   Series E Preferred

9,250   Series F Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
Genomic   Health, Inc.
    	
 
    	
4,181,818   Series B Preferred

4,796,968   Series C Preferred

3,267,973   Series E Preferred

1,000,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Randal   W. Scott
    	
 
    	
15,715,788   Series C Preferred

3,921,568   Series E Preferred

1,000,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Aaron   Scott

 
    	
 
    	
200,000   Series C Preferred

130,718   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Brandon   Scott
    	
 
    	
200,000   Series C Preferred
    
	
 
    	
 
    	
 
    
	
Taylor   Scott
    	
 
    	
200,000   Series C Preferred
    
	
 
    	
 
    	
 
    
	
Sean   E. George
    	
 
    	
11,363   Series A Preferred
    
	
 
    	
 
    	
 
    
	
Michele   Cargill
    	
 
    	
11,363   Series A Preferred
    
	
 
    	
 
    	
 
    
	
Alex   Furman
    	
 
    	
11,363   Series A Preferred
    
	
 
    	
 
    	
 
    
	
Jon   Parker
    	
 
    	
3,750   Series A Preferred
    
	
 
    	
 
    	
 
    
	
Braeden   Mass
    	
 
    	
3,750   Series A Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
Ravish   Bhalla
    	
 
    	
3,864   Series A Preferred
    
	
 
    	
 
    	
 
    
	
The   George Living Trust
    	
 
    	
284,090   Series A Preferred
    
	
 
    	
 
    	
 
    
	
Lisa Alderson
    	
 
    	
26,315   Series C Preferred

19,607   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Apoletto   Limited

c/o   Tulloch & Co.
    	
 
    	
526,315   Series C Preferred

 
    
	
 
    	
 
    	
 
    
	
Joffre   and Diana Baker 1998 Trust
    	
 
    	
210,526   Series C Preferred

65,359   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Deborah   E. Crowder
    	
 
    	
278,947   Series C Preferred
    
	
 
    	
 
    	
 
    
	
Genesys   Ventures II LP
    	
 
    	
3,157,895   Series C Preferred

1,307,189   Series E Preferred

500,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Todd L. Henderson
    	
 
    	
78,947   Series C Preferred
    
	
 
    	
 
    	
 
    
	
Maneesh   Jain
    	
 
    	
105,263   Series C Preferred

65,359   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Stephen   E. Lincoln
    	
 
    	
36,842   Series C Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
Donald   N. and Patricia E. Scott
    	
 
    	
105,263   Series C Preferred
    
	
 
    	
 
    	
 
    
	
Morgan   Stanley Custodian for Terri E. Todd

ROTH   IRA
    	
 
    	
105,263   Series C Preferred
    
	
 
    	
 
    	
 
    
	
Morgan   Stanley Custodian for Mike E. Todd

ROTH   IRA
    	
 
    	
105,263   Series C Preferred
    
	
 
    	
 
    	
 
    
	
Casdin   Partners Master Fund, LP
    	
 
    	
1,307,189   Series E Preferred

1,500,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Redmile   Private Investments I, LP
    	
 
    	
1,373,444   Series E Preferred

859,880   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Redmile   Private Investments I Affiliates, LP
    	
 
    	
640,120   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Redmile   Capital Fund, LP
    	
 
    	
152,433   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Redmile   Capital Offshore Fund, Ltd.
    	
 
    	
89,101   Series E Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
Redmile   Capital Offshore Fund II, Ltd.
    	
 
    	
319,159   Series E Preferred

450,443   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Redmile   Special Opportunities Fund, Ltd.
    	
 
    	
26,647   Series E Preferred

49,557   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Richard   E. Crowder IRA
    	
 
    	
202,   614 Series E Preferred
    
	
 
    	
 
    	
 
    
	
Brandon   D. Scott 1997 Trust
    	
 
    	
130,718   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Taylor   E. Scott 1997 Trust
    	
 
    	
130,718   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Terri   E. Todd
    	
 
    	
26,000   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Terri   E. Todd, IRA
    	
 
    	
85,039   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Mike   Todd, IRA
    	
 
    	
85,039   Series E Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
Diane   Logan & David Logan Family

Revocable   Living Trust
    	
 
    	
202,614   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Douglas   Andrew Gonzales

c/o   Coldwell Banker
    	
 
    	
65,359   Series E Preferred
    
	
 
    	
 
    	
 
    
	
April Lynch
    	
 
    	
32,679   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Geoffrey   B. Nilsen
    	
 
    	
22,875   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Fitzgerald   Tenancy-by-the-Entirety Trust
    	
 
    	
19,607   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Patty   Dumond
    	
 
    	
22,875   Series E Preferred
    
	
 
    	
 
    	
 
    
	
Hawkes   Bay Master Investors (Cayman) LP

c/o   Wellington Management Company, LLP
    	
 
    	
1,216,700   Series F Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
North   River Investors (Bermuda) LP

c/o   Wellington Management Company, LLP
    	
 
    	
765,100   Series F Preferred
    
	
 
    	
 
    	
 
    
	
North   River Partners, L.P.

c/o   Wellington Management Company, LLP
    	
 
    	
1,760,200   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Salthill   Investors (Bermuda) L.P.

c/o   Wellington Management Company, LLP
    	
 
    	
512,200   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Salthill   Partners, L.P.

c/o   Wellington Management Company, LLP
    	
 
    	
745,800   Series F Preferred
    
	
 
    	
 
    	
 
    
	
ORBIMED   PRIVATE INVESTMENTS V, L.P.
    	
 
    	
2,500,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Decheng   Capital China Life Sciences USD Fund I, L.P.
    	
 
    	
2,000,000   Series F Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
Rock   Springs Capital Master Fund LP
    	
 
    	
1,500,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Deerfield   Special Situations Fund, L.P.

c/o   Deerfield Management Company
    	
 
    	
555,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Deerfield   Special Situations International Master Fund, L.P.

c/o   Deerfield Management Company
    	
 
    	
445,000   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Perceptive   Life Sciences Master Fund, Ltd.
    	
 
    	
867,500   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Titan   Perc Ltd.
    	
 
    	
132,500   Series F Preferred
    
	
 
    	
 
    	
 
    
	
Broe   Holdings, LLC
    	
 
    	
1,000,000   Series F Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
AZL   BlackRock Global Allocation Fund, a Series of Allianz Variable Insurance   Products Trust

c/o   Global Allocation Group
    	
 
    	
186,439   Series F Preferred
    
	
 
    	
 
    	
 
    
	
BlackRock   Global Allocation Collective Fund

c/o   Global Allocation Group
    	
 
    	
429,424   Series F Preferred
    
	
 
    	
 
    	
 
    
	
BlackRock   Global Allocation Fund (Australia)

c/o   Global Allocation Group
    	
 
    	
247,498   Series F Preferred
    
	
 
    	
 
    	
 
    
	
BlackRock   Global Allocation Fund, Inc.

c/o   Global Allocation Group
    	
 
    	
14,195,190   Series F Preferred
    
	
 
    	
 
    	
 
    
	
BlackRock   Global Allocation Portfolio of BlackRock Series Fund, Inc.

c/o   Global Allocation Group
    	
 
    	
64,815   Series F Preferred
    

 

 

	
Name and Address
    	
 
    	
Number of Shares of Preferred Stock Held
    
	
 
    	
 
    	
 
    
	
BlackRock   Global Allocation V.I. Fund of BlackRock Variable   Series Funds, Inc.

c/o   Global Allocation Group
    	
 
    	
2,896,633   Series F Preferred
    
	
 
    	
 
    	
 
    
	
BlackRock   Global Funds — Global Allocation Fund

c/o   Global Allocation Group
    	
 
    	
5,603,429   Series F Preferred
    
	
 
    	
 
    	
 
    
	
BlackRock   Global Funds — Global Dynamic Equity Fund

c/o   Global Allocation Group
    	
 
    	
369,458   Series F Preferred
    
	
 
    	
 
    	
 
    
	
JNL/BlackRock   Global Allocation Fund of JNL Series Trust

c/o   Global Allocation Group
    	
 
    	
839,273   Series F Preferred
    
	
 
    	
 
    	
 
    
	
MassMutual   Select BlackRock Global Allocation Fund

c/o   Global Allocation Group
    	
 
    	
167,841   Series F Preferred

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]