Document:

Employment Agreement between the Registrant and Surendra Pai

 Exhibit 10.2 
  

 EMPLOYMENT AGREEMENT 
 AGREEMENT made as of the 1st day of January, 2007 by and between Surendra Pai, residing at              (hereinafter referred to
as the “Employee”) and Authentidate Holding Corp., a Delaware corporation with principal offices located at 300 Connell Drive, Berkeley Heights, NJ 07922. 
 W I T N E S S E T H: 
 WHEREAS, Authentidate Holding Corp. and its subsidiaries (the
“Company”) are engaged in the business of the manufacture and distribution of document imaging systems, providing Internet and software-based document authentication services and related business enterprises; and 
 WHEREAS, the Company desires to continue the employment of the Employee for the purpose of securing for the Company the experience, ability and services
of the Employee; and 
 WHEREAS, the Employee desires to continue employment with the Company pursuant to the terms and conditions herein set
forth, superseding all prior oral and written employment agreements and term sheets and letters between the Company, its subsidiaries and/or predecessors and Employee. 
 NOW, THEREFORE, it is mutually agreed by and between the parties hereto as follows: 
 ARTICLE I

 DEFINITIONS 
 1.1
Accrued Compensation. “Accrued Compensation” shall mean an amount which shall include all amounts earned or accrued through the “Termination Date” (as defined below) but not paid as of the Termination Date, including
(i) Base Salary, 

  

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(ii) reimbursement for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement policy
in effect at such time, (iii) expense allowance, (iv) vacation pay per Company Policy, and (v) bonuses and incentive compensation earned and awarded prior to the Termination Date. 
 1.2 Cause. “Cause” shall mean: (i) willful disobedience by the Employee of a reasonable, material and lawful instruction of the
Board of Directors of the Company consistent with the duties and functions of Employee’s position; (ii) conviction of the Employee of any misdemeanor involving fraud or embezzlement or similar crime, or any felony; (iii) fraud, gross
negligence or willful misconduct in the performance of any material duties to the Company; or (iv) excessive absences from work, other than for illness or Disability; provided that the Company shall not have the right to terminate the
employment of Employee pursuant to the foregoing clauses (i), (iii) or (iv) above unless written notice specifying such breach shall have been given to the Employee and, in the case of breach which is capable of being cured, the Employee
shall have failed to cure such breach within thirty (30) days after his receipt of such notice. 
 1.3 Change in Control.
“Change in Control” shall mean any of the following events: 
 a. (i) An acquisition (other than directly from the Company) of any
voting securities of the Company (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”))
immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated 

  

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under the 1934 Act) of twenty percent (20%) or more of the combined voting power of the Company’s then outstanding Voting Securities; provided,
however, that in determining whether a Change in Control has occurred, Voting Securities which are acquired in a “Non-Control Acquisition” (as defined below) shall not constitute an acquisition which would cause a Change in Control. A
“Non-Control Acquisition” shall mean an acquisition by (1) an employee benefit plan (or a trust forming a part thereof) maintained by (x) the Company or (y) any corporation or other Person of which a majority of its voting
power or its equity securities or equity interest is owned directly or indirectly by the Company (a “Subsidiary”), or (2) the Company or any Subsidiary. 
 (ii) Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because a Person (the “Subject Person”) gained Beneficial Ownership of more than the permitted amount of the
outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person,
provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes the Beneficial
Owner of any additional Voting Securities which increases the percentage of the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 
 b. The individuals who, as of the date this Agreement is approved by the Board, are members of the Board (the “Incumbent Board”), cease for any
reason to constitute at least two-thirds of the Board; provided, however, that if the election, or nomination for election by the Company’s stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board,

  

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such new director shall, for purposes of this Agreement, be considered and defined as a member of the Incumbent Board; and provided, further, that no
individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual “Election Contest” (as described in Rule 14a-11 promulgated under the 1934 Act) or other
solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”); or 
 c. Approval by
stockholders of the Company of: 
 (i) A merger, consolidation or reorganization involving the Company, unless: (1) the stockholders of
the Company, immediately before such merger, consolidation or reorganization, own, directly or indirectly immediately following such merger, consolidation or reorganization, at least sixty percent (60%) of the combined voting power of the
outstanding voting securities of the corporation resulting from such merger or consolidation or reorganization (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately
before such merger, consolidation or reorganization, (2) the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger, consolidation or reorganization constitute at least
two-thirds of the members of the board of directors of the Surviving Corporation, and (3) no Person (other than the Company, any Subsidiary, any employee benefit plan (or any trust forming a part thereof) maintained by the Company, the
Surviving Corporation or any Subsidiary) becomes Beneficial Owner of twenty percent (20%) or more of the combined voting power of the Surviving Corporation’s then outstanding voting securities as a result of such merger, consolidation or
reorganization, a transaction described in clauses (1) through (3) shall herein be referred to as a “Non-Control Transaction”; or 
  

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 (ii) An agreement for the sale or other disposition of all or substantially all of the assets of the
Company, to any Person, other than 1) a transfer to a Subsidiary, in one transaction or a series of related transactions; or 2) the sale, spin-off or divestiture of a subsidiary or business unit other than the US security software business unit.

 (iii) The stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company. 
 d. Notwithstanding anything contained in this Agreement to the contrary, if the Employee’s employment is terminated prior to a Change in Control and
the Employee reasonably demonstrates that such termination (i) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control (a “Third Party”) or
(ii) otherwise occurred in connection with, or in anticipation of, a Change in Control, then for all purposes of this Agreement, the date of a Change in Control with respect to the Employee shall mean the date immediately prior to the date of
such termination of the Employee’s employment. 
 1.4 Continuation Benefits. “Continuation Benefits” shall be the
continuation of the Benefits, as defined in Section 5.1, for the period from the Termination Date to either (i) the later of the Expiration Date, or the end of the month in which the one-year anniversary of the Termination Date occurs, or
(ii) such other period as specifically stated by this Agreement (the “Continuation Period”), at the Company’s expense, less any normal payroll deductions, on behalf of the Employee and his dependents; provided, however, if any of
the Benefits required to be provided by the Company during the Continuation Period under the Company’s benefit 

  

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plans are, pursuant to the terms of such plans, not available to non-employees of the Company, the Company, at its sole cost and expense, less any normal
payroll deductions, shall be required to provide such benefits as shall be reasonably available and substantially similar to the benefits provided to employees of the Company. The Company’s obligation hereunder with respect to the foregoing
benefits shall also be limited to the extent that if the Employee obtains such benefits pursuant to a subsequent employer’s benefit plan, the Company may reduce the coverage of any benefits it is required to provide the Employee hereunder as
long as the aggregate coverage and benefits of the combined benefit plans is no less favorable to the Employee than the coverage and benefits required to be provided hereunder. This definition of Continuation Benefits shall not be interpreted so as
to limit any benefits to which the Employee, his dependents or beneficiaries may be entitled under any of the Company’s employee benefit plans, programs or practices following the Employee’s termination of employment, including, without
limitation, retiree medical and life insurance benefits. 
 1.5 Disability. “Disability” shall mean a physical or mental
infirmity which impairs the Employee’s ability to substantially perform his duties with the Company for a period of three consecutive months, and the Employee has not returned to his full time employment prior to the Termination Date as stated
in the “Notice of Termination” (as defined below). 
 1.6 Good Reason. “Good Reason” shall mean without the
written consent of the Employee: (A) a material breach of any provision of this Agreement by the Company; (B) failure by the Company to pay when due any compensation to the Employee; (C) a reduction in the Employee’s Base Salary;
(D) failure by the Company to maintain the Employee in the positions referred to in 

  

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Section 2.1 of this Agreement; (E) assignment to the Employee of any duties materially and adversely inconsistent with the Employee’s
positions, authority, duties, responsibilities, powers, functions, reporting relationship or title as contemplated by Section 2.1 of this Agreement or any other action by the Company that results in a material diminution of such positions,
authority, duties, responsibilities, powers, functions, reporting relationship or title; (F) relocation of the principal office of the Company or the Employee’s principal place of employment to a location outside a 15 (fifteen) mile radius
of the present location in Berkeley Heights, New Jersey, without the Employee’s written consent; or (G) a Change in Control, provided the event on which the Change of Control is predicated occurs within 120 days of the service of the
Notice of Termination by the Employee, it being understood that Employee shall have the right to terminate his employment under this Section 1.6 (G) for any reason or no reason within such 120 day period; and provided further, however,
that the Employee agrees not to terminate his employment for Good Reason pursuant to clauses (A) through (F) unless (a) the Employee has given the Company at least 30 days’ prior written notice of his intent to terminate his
employment for Good Reason, which notice shall specify the facts and circumstances constituting Good Reason; and (b) the Company has not remedied such facts and circumstances constituting Good Reason to the reasonable and good faith
satisfaction of the Employee within a 30-day period after receipt of such notice. 
 1.7 Notice of Termination. “Notice of
Termination” shall mean a written notice from the Company, or the Employee, of termination of the Employee’s employment which indicates the specific termination provision in this Agreement relied upon, if any, and which sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated. 
  

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 1.8 Severance Payment. “Severance Payment” shall mean an amount equal to the sum of
(i) 12 months of the greater of (A) the Employee’s Base Salary in effect on the Termination Date and (B) the highest Base Salary in effect at any time during the ninety (90) day period prior to the Termination Date; and
(ii) $187,500 multiplied by the quotient determined by dividing the number of days from January 1, 2007 to the Date of Termination by 365. The Severance Payment shall be payable as provided in Section 9. For purposes of computing the
Severance Payment, Base Salary shall include any automatic increases to Base Salary to which the Employee would have been entitled had this Agreement not been terminated. 
 1.9 Termination Date. Termination Date shall mean (i) in the case of the Employee’s death, his date of death; (ii) in the case of Good Reason, 30 days from the date the Notice of Termination is
given to the Company, provided the Company has not remedied such facts and circumstances constituting Good Reason to the reasonable and good faith satisfaction of the Employee; (iii) in the case of termination of employment on or after the
Expiration Date, the last day of employment; and (iv) in all other cases, the date specified in the Notice of Termination; provided, however, if the Employee’s employment is terminated by the Company for any reason except Cause, the date
specified in the Notice of Termination shall be at least 30 days from the date the Notice of Termination is given to the Employee, and provided further that in the case of Disability, the Employee shall not have returned to the full-time performance
of his duties during such period of at least 30 days. 
  

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 ARTICLE II 
 EMPLOYMENT 
 2.1 Subject to and upon the terms and conditions of this Agreement, the Company hereby
agrees to continue the employment of the Employee, and the Employee hereby accepts such continued employment in his capacity as President and Chief Executive Officer. The Company shall nominate Employee, and use its best efforts to have Employee
elected to the Board of Directors of the Company (the “Board”) throughout the term of this Agreement. The Employee agrees to resign from the Board upon the termination of employment for any reason. 
 ARTICLE III 
 DUTIES 

3.1 The Employee shall, during the term of his employment with the Company, and subject to the direction and control of the Board, report directly to
the Board and shall exercise such authority, perform such executive duties and functions and discharge such responsibilities as are reasonably associated with his executive position or as may be reasonably assigned or delegated to him from time to
time by the Board, consistent with his position as President and Chief Executive Officer. In general, Employee shall have management authority with respect to, and responsibility for, the overall operations and day-to-day business and affairs of the
Company and all major operating units and executives of the Company shall report, either directly or indirectly (through other executives of the Company or its subsidiaries who report directly to the Employee) to the Employee. 
 3.2 During the term of this Agreement and excluding periods of vacation and sick leave to which the Employee is entitled, the Employee agrees to devote
substantially all of his business time and attention to the affairs of the Company and, to the extent 

  

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necessary to discharge the responsibilities assigned hereunder, use his best efforts in the performance of his duties for the Company and any subsidiary
corporation of the Company. During the term of this Agreement the Employee may, so long as it does not materially interfere with his duties hereunder: (i) subject to Article VII hereof, serve on the board of directors (or equivalent bodies) of
civic, non-profit, or charitable organizations or entities unaffiliated with the Company, (ii) deliver lectures or otherwise participate in speaking engagements, and (iii) manage his personal investments and affairs. 
 3.3 Employee shall undertake regular travel to the Company’s executive and operational offices, and such other occasional travel within or outside
the United States as is or may be reasonably necessary in the interests of the Company. All such travel shall be at the sole cost and expense of the Company and all airplane travel shall be first or business class, or otherwise fully reimbursed at
cost, to the extent that such reimbursements do not exceed the approximate equivalent published fare for first or business class travel. 
 ARTICLE IV 
 COMPENSATION 
 4.1 During the term of this Agreement, Employee shall be compensated at the rate of $375,000 per annum, subject to such increases to be determined by the Board, or if the Board so designates, the Compensation
Committee, in its discretion, at the commencement of each of the Company’s fiscal years during the term of this Agreement (the “Base Salary”). Base Salary shall be paid to the Employee in regular installments on each of the
Company’s regular pay dates for executives, but no less frequently than monthly. 
  

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 4.2 Employee shall be eligible to receive a bonus (the “Bonus”) in the discretion of the Board,
or if the Board so designates, the Compensation Committee of the Board based on the annual performance of the Company. Employee will have an opportunity to earn a Bonus targeted at 50% of Employee’s Base Salary for each fiscal year of
employment. The Bonus will be based on Employee’s achievement of revenue and income targets and other key objectives established at the commencement of each fiscal year by the Board or if the Board so designates, the Compensation Committee of
the Board and reasonably acceptable to the Employee. 
 4.3 The Bonus shall be paid to the Employee on the earlier to occur of (x) the
first pay period after the filing of the Company’s report on Form 10-K with the Securities and Exchange Commission or (y) at such time as the amount of the Bonus for such period can reasonably be audited by the Company’s independent
accountants. The Company shall deduct from Employee’s compensation all federal, state, and local taxes which it may now or may hereafter be required to deduct under applicable law. 
 4.4 Employee may receive such other additional compensation as may be determined from time to time by the Board including bonuses and other long term
compensation plans. Nothing in this subparagraph 4.4 shall be deemed or construed to require the Board to award any bonus or additional compensation. 
 4.5 In the event it shall be determined that any payment or distribution by the Company or any other person or entity to or for the benefit of the Employee is a “parachute payment” within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, 

  

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in connection with, or arising out of, his employment with the Company or a change in control of the Company or a substantial portion of its assets (a
“Payment”), and would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), and further, if the event which caused the imposition of the Excise Tax is either (i) a transaction approved by
the Board; or (ii) a Change of Control as defined in Section 1.3, concurrent with the making of such Payment, the Company shall pay to the Employee an additional payment (the “Gross-Up Payment”) in an amount such that the net
amount retained by the Employee after deduction of any Excise Tax on such Payment and any federal, state or local income tax and Excise Tax on the Gross-Up Payment shall equal the amount of such Payment. In the event the Internal Revenue Service
subsequently may assess or seek to assess from the Employee an amount of Excise Tax in excess of that determined in accordance with the foregoing, the Company shall pay to the Employee an additional Gross-Up Payment, calculated as described above in
respect of such excess Excise Tax, including a Gross-Up Payment in respect of any interest or penalties imposed by the Internal Revenue Service with respect to such excess Excise Tax. The Gross-Up Payment shall be paid as soon as practicable after
it is determined by the Company or the Employee and reviewed for accuracy by the Company’s certified public accountants and in no event later than thirty (30) days after the conclusion of the transaction to which this paragraph applies.

  

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 ARTICLE V 
 BENEFITS 
 5.1 During the term hereof, the Company shall provide Employee with the following
benefits, as such benefits may change from time to time (the “Benefits”): (i) group health care and insurance benefits as generally made available to the Company’s senior management; and (ii) such other benefits (including
insurance related benefits, holiday, sick leave, personal days, etc.) obtained by the Company or made generally available to the Company’s senior management; 
 5.2 The Employee shall receive an expense allowance for automobile and other living expenses of $2,500 per month, prorated and payable with each payroll check. In addition, the Company shall reimburse Employee, upon
presentation of the Company’s standard expense report accompanied by appropriate vouchers and other suitable documentation, incurred by Employee on behalf of the Company, provided such expenditure is consistent with Company policy. 

5.3 In the event the Company wishes to obtain Key Man life insurance on the life of Employee, Employee agrees to cooperate with the Company in
completing any applications necessary to obtain such insurance and promptly submit to such physical examinations and furnish such information as any proposed insurance carrier may request. 
 5.4 For the term of this Agreement, Employee shall be entitled to paid vacation at the rate of (4) weeks per annum. 
  

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 ARTICLE VI 
 NON-DISCLOSURE 
 6.1 The Employee shall not, at any time during or after the termination of his
employment hereunder, except when acting on behalf of and with the authorization of the Company, or when required by law or legal process, or where appropriate in response to regulatory authorities, make use of or disclose to any person,
corporation, or other entity, for any purpose whatsoever, any trade secret or other confidential information concerning the Company’s business, finances, marketing, computerized payroll, accounting and information business, personnel and/or
employee leasing business of the Company and its subsidiaries, including information relating to any customer of the Company, or any other nonpublic business information of the Company and/or its subsidiaries learned as a consequence of
Employee’s employment with the Company, except for information available publicly or from other non-confidential sources (collectively referred to as the “Proprietary Information”). The Employee acknowledges that Proprietary
Information, as they may exist from time to time, are valuable and unique assets of the Company, and that disclosure of any such information would cause substantial injury to the Company. Proprietary Information shall cease to be Proprietary
Information, as applicable, at such time as such information becomes public other than through disclosure, directly or indirectly, by Employee in violation of this Agreement. 
 6.2 If Employee is requested or required (by oral questions, interrogatories, requests for information or document subpoenas, civil investigative
demands, or similar process) to disclose any Proprietary Information, Employee shall, unless prohibited by law, promptly notify the Company of such request(s) so that the Company may seek an appropriate protective order. 
  

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 ARTICLE VII 
 RESTRICTIVE COVENANT 
 7.1 In the event of the termination of Employee’s employment with the
Company at any time, Employee agrees that he will not, for a period of one (1) year following such termination, directly or indirectly, enter into or become associated with or engage in any other business (whether as a partner, officer,
director, shareholder, employee, consultant, or otherwise), which business is primarily involved in the manufacture, development and/or distribution of document imaging systems, or digital image authentication or is otherwise engaged in the same or
similar business as the Company in direct competition with the Company, or which the Company was in the process of developing during the term of Employee’s employment with the Company and such development is based on actual or demonstrative
anticipated research. Notwithstanding the foregoing, (x) the ownership by Employee of less than five percent of the shares of any publicly held corporation shall not violate the provisions of this Article VII, and (y) the Employee shall
not be required to comply with any provision of this Article VII following termination of this Agreement if the amounts required to be paid under Article IX are not timely paid. 
 7.2 In furtherance of the foregoing, Employee shall not during the aforesaid period of non-competition, directly or indirectly, in connection with any
business primarily involved in the manufacture, development and/or distribution of document imaging systems, or digital image authentication services, or any business similar to the business in which the Company was engaged, or in the process

  

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of developing during Employee’s tenure with the Company and such development is based on actual or demonstrative anticipated research, solicit any
customer or employee of the Company who was a customer or employee of the Company within one year of the Termination Date. 
 7.3 Except as
otherwise may be agreed by the Company in writing, in consideration of the employment of Employee by the Company, and free of any additional obligations of the Company to make additional payment to Employee, Employee agrees to irrevocably assign to
the Company any and all inventions, software, manuscripts, documentation, improvements or other intellectual property whether or not protectable by any state or federal laws relating to the protection of intellectual property, relating to the
present or future business of the Company that are developed by Employee during the term of his/her employment with the Company, either alone or jointly with others, and whether or not developed during normal business hours or arising within the
scope of his/her duties of employment. Employee agrees that all such inventions, software, manuscripts, documentation, improvement or other intellectual property shall be and remain the sole and exclusive property of the Company and shall be deemed
the product of work for hire. Employee hereby agrees to execute such assignments and other documents as the Company may consider appropriate to vest all right, title and interest therein to the Company and hereby appoints the Company Employee’s
attorney-in-fact with full powers to execute such document itself in the event employee fails or is unable to provide the Company with such signed documents. Notwithstanding the foregoing, this provision does not apply to an invention for which no
equipment, supplies, facility, or trade secret information of the Company was used and which was developed entirely on Employee’s own time, unless (a) the invention relates 

  

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(i) to the business of the Company, or (ii) to the Company’s actual or demonstrably anticipated research or development, or (b) the
invention results from any work performed by Employee for the Company. 
 7.4 If any court shall hold that the duration of non-competition or
any other restriction contained in this Article VII is unenforceable, it is our intention that same shall not thereby be terminated but shall be deemed amended to delete therefrom such provision or portion adjudicated to be invalid or unenforceable
or, in the alternative, such judicially substituted term may be substituted therefor. 
 ARTICLE VIII 
 TERM 
 8.1 This Agreement shall be
effective upon execution by both parties hereto and the employment term (the “Initial Term”) shall commence on January 1, 2007 (the “Commencement Date”) and terminate on December 31, 2007 (the “Expiration
Date”), unless sooner terminated upon the death of the Employee, or as otherwise provided herein. 
 8.2 The Company shall notify in
writing the Employee of the Company’s intention to continue Employee’s employment after the Expiration Date no less than 90 days prior to the Expiration Date. 
 8.3 Upon termination of the Employee’s employment with the Company, the Company shall pay Employee, in addition to any other payments due hereunder, the amounts due under Article IX. 
  

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 ARTICLE IX 
 TERMINATION 
 9.1 The Company may terminate this Agreement by giving a Notice of Termination to the
Employee in accordance with this Agreement: 
  

	 	a.	for Disability; 

  

	 	b.	for Cause 

  

	 	c.	without Cause. 

 9.2 Employee may terminate this Agreement
at any time by giving 30 days prior written Notice of Termination to the Company in accordance with this Agreement. 
 9.3 If the
Employee’s employment with the Company shall be terminated, the Company shall pay and/or provide to the Employee the following compensation and benefits: 
  

	 	a.	if the Employee was terminated by the Company for Cause, or the Employee terminates without Good Reason, the Accrued Compensation; 

  

	 	b.	if the Employee was terminated by the Company for Disability, the Accrued Compensation, the Severance Payment and the Continuation Benefits; or 

  

	 	c.	if termination was due to the Employee’s death, the Accrued Compensation; or 

  

	 	d.	if the Employee was terminated by the Company without Cause or the Employee terminates this Agreement for Good Reason, (i ) the Accrued Compensation; (ii) the Severance
Payment; and (iii) the Continuation Benefits. 

  

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	 	e.	In the event the Company fails to notify the Employee in accordance with Section 8.2, or after notifying the Employee fails to reach an agreement on a new employment agreement
prior to the Expiration Date, Employee’s employment shall terminate on the Expiration Date and the Company shall pay the Employee the Severance Payment; Accrued Compensation, and the Continuation Benefits. 

  

	 	9.4	The amounts payable under this Section 9.3, shall be paid as follows: 

  

	 	a.	Accrued Compensation shall be paid on the first regular pay date after the Termination Date (or earlier, if required by applicable law). 

  

	 	b.	If the Continuation Benefits are paid in cash, the aggregate amount of the Continuation Benefits shall be paid as follows: 25% in one lump sum on the first regular pay date after
the Termination Date, and the balance in five equal monthly installments commencing one month after the Termination Date (or earlier, if required by applicable law) on the Company’s regular pay dates. 

  

	 	c.	The Severance Payments shall be paid as follows: 25% in one lump sum within five business days of the Termination Date, and the balance in five equal monthly installments commencing
one month after the Termination Date(or earlier, if required by applicable law) on the Company’s regular pay dates; 

  

	 	d.	 Notwithstanding the foregoing, in the event counsel for the Employee advises the Employee that any payments should be deferred for six months after the Termination
Date, the Company shall defer the payment of all such payments 

  

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for six months (the “Deferral Period”), and pay, in one lump sum on the sixth month anniversary of the Termination Date, all payments deferred
during the Deferral Period, and thereafter all payments shall continue as otherwise provided in this Agreement. 

 9.5 The
Employee shall not be required to mitigate the amount of any payment, including the value of any Continuation Benefit, provided for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the
amount of any compensation or benefits provided to the Employee in any subsequent employment except as provided in Sections 1.4. 
 9.6 For a
period of three years following the termination of this Agreement, Employee agrees that he will not make any negative or derogatory statements in verbal, written, electronic or any other form about the Company, including, but not limited to, a
negative or derogatory statement made in, or in connection with, any article or book, on a website, in a chat room or via the internet except where such statement is required by law or regulation. During such three year period, none of the executive
officers and directors shall make any negative or derogatory statements in verbal, written, electronic or any other form about the Employee, including, but not limited to, a negative or derogatory statement made in, or in connection with, any
article or book, on a website, in a chat room or via the internet except where such statement is required by law or regulation 
  

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 ARTICLE X 
 TERMINATION OF PRIOR AGREEMENTS 
 10.1 This Agreement, and the stock option, bonus plan and benefit
plans, sets forth the entire agreement between the parties and supersedes all prior agreements, letters and understandings between the parties, whether oral or written prior to the effective date of this Agreement, except for the terms of employee
stock option plans and option certificates. 
 ARTICLE XI 
 STOCK OPTIONS 
 11.1 As an inducement to Employee to enter into this Agreement the Company hereby
grants, as of the date of this Agreement, to Employee options to purchase shares of the Company’s Common Stock, $.001 par value, as follows: 
 Subject to the terms and conditions of the Company’s 2000 Employees’ Stock Option Plan (the “Plan”), and the terms and conditions set forth in the Stock Option Agreement which are incorporated herein by reference, the
Employee is hereby granted options to purchase 400,000 shares of the Company’s Common Stock, which shall vest monthly over a period of two years, as long as Employee continues to be an employee of the Company but subject to Section 11.2
hereto, as follows: 16,682 shall vest on January 31, 2007 and the remainder shall vest at the rate of 16,666 on the last day of each month for the next 23 months (the “Options”). The exercise price of the Options shall be the fair
market value per share of the Company’s Common Stock as of the date of grant and shall contain such other terms and conditions as set forth in the stock option agreement. The foregoing Options shall be qualified as incentive stock options to
the maximum as allowed by law. The Options provided for herein are not transferable by 

  

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Employee and shall be exercised only by Employee, or by his legal representative or executor, as provided in the Plan. Such Options shall terminate as
provided in the Plan, except as otherwise modified by this Agreement. 
 11.2 In the event of a termination of Employee’s employment
with the Company pursuant to Section 9.1(c) or 9.3(e) or by the Employee for Good Reason, notwithstanding anything herein or in any stock option agreement to the contrary, the options granted hereunder which shall have vested on the Date of
Termination, plus 200,000 options, will be deemed vested and exercisable for two years from the Date of Termination. The terms of such options shall be deemed amended to take into account the foregoing provisions. In the event of a termination of
Employee’s employment with the Company pursuant to Section 9.1(b), options granted and not exercised as of the Termination Date shall terminate immediately and be null and void. In the event of a termination of Employee’s employment
with the Company due to the Employee’s death, or Disability, the Employee’s (or his estate’s or legal representative’s) right to purchase shares of Common Stock of the Company pursuant to any stock option or stock option plan to
the extent vested as of the Termination Date shall remain exercisable for a period of twelve (12) months following the Termination Date, but in no event after the expiration of the exercise period. In the event of a termination of
Employee’s employment with the Company by the Employee other than for Good Reason, the Employee’s right to purchase shares of Common Stock of the Company pursuant to any stock option or stock option plan to the extent vested as of the
Termination Date shall remain exercisable for a period of three months following the Termination Date, but in no event after the expiration of the exercise period. 
  

 22 

 ARTICLE XII 
 ARBITRATION AND INDEMNIFICATION 
 12.1 Any dispute arising out of the interpretation, application,
and/or performance of this Agreement with the sole exception of any claim, breach, or violation arising under Articles VI or VII hereof shall be settled through final and binding arbitration before a single arbitrator in the State of New Jersey in
accordance with the Rules of the American Arbitration Association. The arbitrator shall be selected by the American Arbitration Association and shall be an attorney-at-law experienced in the field of corporate law. Any judgment upon any arbitration
award may be entered in any court, federal or state, having competent jurisdiction of the parties. 
 12.2 The Company hereby agrees to
indemnify, defend, and hold harmless the Employee for any and all claims arising from or related to his employment by the Company at any time asserted, at any place asserted, to the fullest extent permitted by law. The Company shall maintain such
insurance as is necessary and reasonable (with minimum coverage of not less than $5,000,000) to protect the Employee from any and all claims arising from or in connection with his employment by the Company during the term of Employee’s
employment with the Company and for a period of six (6) years after the date of termination of employment for any reason. The provisions of this Section are in addition to and not in lieu of any indemnification, defense or other benefit to
which Employee may be entitled by statute, regulation, common law or otherwise. 
  

 23 

 ARTICLE XIII 
 SEVERABILITY 
 If any provision of this Agreement shall be held invalid and unenforceable, the
remainder of this Agreement shall remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall remain in full force and effect in all other circumstances. 
 ARTICLE XIV 
 NOTICE 

For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when (a) personally delivered or (b) sent by (i) a nationally recognized overnight courier service or (ii) certified mail, return receipt requested, postage prepaid and in each case addressed to the respective
addresses as set forth below or to any such other address as the party to receive the notice shall advise by due notice given in accordance with this paragraph. All notices and communications shall be deemed to have been received on (A) if
delivered by personal service, the date of delivery thereof; (B) if delivered by a nationally recognized overnight courier service, on the first business day following deposit with such courier service; or (C) on the third business day
after the mailing thereof via certified mail. Notwithstanding the foregoing, any notice of change of address shall be effective only upon receipt. 
  

 24 

 The current addresses of the parties are as follows: 
  

					
	 	 	IF TO THE COMPANY:	 	Authentidate Holding Corp.
		 		 	Connell Corporate Center
		 		 	300 Connell Drive, Fifth Floor
		 		 	Berkeley Heights, NJ 07922
			
		 	WITH A COPY TO:	 	Victor J. DiGioia
		 		 	Goldstein & DiGioia, LLP
		 		 	45 Broadway
		 		 	New York, NY 10006
			
		 	IF TO THE EMPLOYEE:	 	Surendra Pai

 ARTICLE XV 
 BENEFIT 
 This Agreement shall inure to, and shall be binding upon, the parties hereto, the
successors and assigns of the Company, and the heirs and personal representatives of the Employee. 
 ARTICLE XVI 
 WAIVER 
 The waiver by either party of
any breach or violation of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of construction and validity. 
  

 25 

 ARTICLE XVII 
 GOVERNING LAW 
 This Agreement has been negotiated and executed in the State of New Jersey. The law
of the State of New Jersey shall govern the construction and validity of this Agreement. 
 ARTICLE XVIII 
 JURISDICTION 
 Any or all actions or
proceedings which may be brought by the Company or Employee under this Agreement shall be brought in courts having a situs within the State of New Jersey, and Employee and the Company each hereby consent to the jurisdiction of any local, state, or
federal court located within the State of New Jersey. 
 ARTICLE XIX 
 ENTIRE AGREEMENT 
 This Agreement contains the entire agreement between the
parties hereto. No change, addition, or amendment shall be made hereto, except by written agreement signed by the parties hereto. 
  

 26 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement and affixed their hands and
seals the day and year first above written. 
  

			
	Authentidate Holding Corp.
		
	 By:
	 	 /s/ J. Edward Sheridan
  

		 	J. Edward Sheridan
		 	Chairman of the Compensation Committee
	
	Employee
		
		 	 /s/ Surendra B. Pai
  

		 	Surendra B. Pai
		 	Employee

  

 27Form of Warrant to Purchase Shares

 Exhibit 4.3 
 THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW,
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE
SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION. 
 WARRANT TO PURCHASE STOCK 

 

			
	Company:	 	CardioMEMS, Inc., a Delaware corporation
	Number of Shares:	 	26,042 (or as adjusted pursuant to Article 2)
	Class of Stock:	 	Series B Preferred
	Warrant Price:	 	$0.96 per share
	Issue Date:	 	Is the Warrant Effective Date, which is the date in which the Holder executes this Warrant
	Expiration Date:	 	The 7th anniversary after the Issue Date

 THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good and valuable
consideration, SILICON VALLEY BANK (“Holder”) is entitled to purchase the number of fully paid and nonassessable shares of the class of stock (the “Shares”) of the company (the “Company”) at the Warrant Price all as set
forth above and as adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant. 
 ARTICLE 1. EXERCISE. 
 1.1 Method of Exercise. At any time prior to the Expiration Date, Holder may exercise this
Warrant by delivering this Warrant together with a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the Company at the address set forth in Article 5.6 hereof (or at such other address as the Company may designate
from time to time pursuant to Article 5.6 hereof). Unless Holder is exercising the conversion right set forth in Article 1.2, Holder shall also deliver to the Company a check, wire transfer (to an account designated by the Company), or other from of
payment acceptable to the Company for the aggregate Warrant Price for the Shares being purchased. 
 1.2 Conversion Right. In lieu of
exercising this Warrant as specified in Article 1.1, Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares issuable upon exercise
of this Warrant (or, if only a portion of this Warrant is being converted, the aggregate fair market value of the Shares issuable upon exercise of that portion of this Warrant being so converted) minus the aggregate Warrant Price of such Shares by
(b) the fair 

 
market value of one Share. The fair market value of the Shares shall be determined pursuant to Article 1.3. In order to exercise its conversion right
pursuant to this Article 1.2, Holder shall deliver this Warrant together with a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the Company at the address set forth in Article 5.6 hereof (or at such other address
as the Company may designate from time to time pursuant to Article 5.6 hereof). 
 1.3 Fair Market Value. If the Company’s common
stock is quoted on NASDAQ or listed on any national exchange and the Shares are preferred stock, the fair market value of a Share shall be the closing price of a share of the Company’s common stock as quoted on NASDAQ or listed on such national
exchange, as applicable, and reported for the business day immediately before Holder delivers its Notice of Exercise to the Company (or, in the instance where the Warrant is exercised immediately prior to the effectiveness of the Company’s
initial public offering, the initial “price to public” per share price specified in the final prospectus relating to such offering), in both cases, multiplied by the number of shares of the Company’s common stock into which a Share is
convertible. I f the Company’s common stock is not quoted on NASDAQ or listed on any national exchange, the Board of Directors of the Company shall determine the fair market value in its reasonable good faith judgment. 
 1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or converts this Warrant in accordance with the provisions of this
Article 1, and, if applicable, the Company receives payment of the aggregate Warrant Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised or converted and has not expired,
a new Warrant representing the Shares not so acquired. 
 1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of
mutilation, on surrender and cancellation of this Warrant, the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor. 
 1.6 Treatment of Warrant Upon Acquisition of Company. 
 1.6.1 “Acquisition”. For the
purpose of this Warrant, “Acquisition” means any sale, license, or other disposition of all or substantially all of the assets of the Company, or any acquisition, reorganization, consolidation, or merger of the Company where the holders of
the Company’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction. 
 1.6.2 Treatment of Warrant at Acquisition. 
 (a) In the event of an Acquisition in which the sole
consideration is cash, and, if, on the record date for the Acquisition, the fair market value of the Shares (or other securities issuable upon exercise of this Warrant) is equal to or greater than the Warrant price, Holder agrees that either
(a) Holder shall exercise its conversion or purchase right under this Warrant and such exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise the Warrant, this

  

 2 

 
Warrant will expire upon the consummation of such Acquisition. The Company shall provide the Holder with written notice of the contemplated Acquisition
(together with such information as the Company delivers to stockholders of the Company in connection with such contemplated Acquisition), which is to be delivered to Holder not less than ten (10) days prior to the closing of the proposed
Acquisition. 
 (b) Holder agrees that, in the event of an Acquisition of the Company by an acquirer whose stock is quoted on NASDAQ or
listed on any national exchange if, on the record date for the Acquisition, the fair market value of the Shares (or other securities issuable upon exercise of this Warrant) is equal to or greater than the Warrant Price and the consideration to be
paid in the Acquisition is either stock of the acquirer or a combination of cash and such stock, the Warrant will be deemed to be automatically exercised pursuant to Article 1.2 hereof, and the Holder shall participate in the Acquisition as a holder
of the Shares (or other securities issuable upon exercise of the Warrant) on the same terms as other holders of the same class of securities of the Company. 
 (c) Upon the closing of any Acquisition other than those particularly described in subsections (a) or (b) above, the successor entity shall assume the obligations of the Warrant, and the Warrant shall be
exercisable for the same securities, cash, and property as would be payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent
closing. The Warrant Price and/or number of Shares shall be adjusted accordingly. 
 ARTICLE 2. ADJUSTMENTS TO THE SHARES. 
 2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on the Shares payable in common stock, or other securities, then upon
exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend
occurred. If the Company subdivides the Shares by reclassification or otherwise into a greater number of shares, the number of Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased.
If the outstanding shares are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares purchasable hereunder shall be proportionately
decreased. 
 2.2 Reclassification, Exchange, Combinations or Substitution. Subject to the provisions of Article 1.6 hereof, upon any
reclassification, exchange, substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon exercise or conversion of
this Warrant, the number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. Such an event shall
include any automatic conversion of the outstanding or issuable securities of the Company of the same class or series as the Shares to common stock pursuant to the terms of the Company’s Certificate of Incorporation upon the closing of a
registered public offering of the Company’s common stock. The Company or its successor shall promptly issue to Holder an amendment to this Warrant setting forth the number 

  

 3 

 
and kind of such new securities or other property issuable upon exercise or conversion of this Warrant as a result of such reclassification, exchange,
substitution or other event that results in a change of the number and/or class of securities issuable upon exercise or conversion of this Warrant. The amendment to this Warrant shall provide for adjustments which shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new Warrant. The provisions of this
Article 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events. 
 2.3 Changes to
Antidilution Provisions. Until the earlier to occur of (i) the exercise or conversion in full of this Warrant, or (ii) the Expiration Date, the provisions set forth in Article IV.D.4.(i) of the Company’s Certificate of
Incorporation in effect as of the Issue Date may not be amended, modified or waived, without the prior written consent of Holder, unless such amendment, modification or waiver affects the rights associated with the Shares in the same manner as such
amendment, modification or waiver affects the rights associated with all other shares of the same series and class as the Shares issuable pursuant to this Warrant. 
 2.4 Adjustments Based on Loan Availability. If, under the Loan Agreement between Company and Silicon Valley Bank of even date herewith (the “Loan Agreement”), on the Commitment Termination Date (as
defined in the Loan Agreement), there is at least $250,000 that has not been Advanced to Company under the Committed Equipment Line, the number of Shares for which this Warrant is exercisable shall be reduced from 26,042 to 17,578 (taking into
consideration prior adjustments which may have been made pursuant to Sections 2.1 or 2.2 hereof). 
 2.5 Fractional Shares. No
fractional Shares shall be issuable upon exercise or conversion of the Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the
Warrant, the Company shall eliminate such fractional share interest by paying Holder the amount computed by multiplying the fractional interest by the fair market value of a full Share. 
 2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the Company shall promptly notify Holder in writing, and, at the
Company’s expense, promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company shall, upon written request,
furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 
 ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY. 
 3.1 Representations and Warranties. The Company represents
and warrants to the Holder as follows: 
 (a) The initial Warrant Price referenced on the first page of this Warrant is not greater than the
price per share at which the Shares were last issued in an arms-length transaction in which at least $500,000 of the Shares were sold. 
  

 4 

 (b) All Shares which may be issued upon the exercise of the purchase right represented by this Warrant,
and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for
herein or under applicable federal and state securities laws. 
 (c) The Capitalization Table previously provided to Holder on March
    , 2004 remains true and complete as of the Issue Date. 
 3.2 Notice of Certain Events. If the Company
proposes at any time (a) to declare any dividend or distribution upon any of its stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to effect any reclassification or
recapitalization of any of its stock; or (c) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up, then in connection with
each such event, the Company shall give Holder: (1) at least 10 days prior written notice of the date on which a record will be taken for such dividend or distribution (and specifying the date on which the holders of common stock will be
entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (b) and (c) above; and (2) in the case of the matters referred to in (b) and (c) above at least 10 days prior written
notice of the date when the same will take place (and specifying the date on which the holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event).

 3.3 Registration Under Securities Act of 1933, as amended. The Company agrees that the Shares issued upon the exercise of this
Warrant when so issued, or, if the Shares are convertible into common stock of the Company, such common stock when so issued, shall have the S-3 and “Piggyback,” registration rights pursuant to and as set forth in the Company’s
Investor Rights Agreement, dated November 10, 2003, as such may be amended from time to time (the “Investors’ Rights Agreement”). 
 3.4 No Shareholder Rights. Except as provided in this Warrant, the Holder will not have any rights as a shareholder of the Company until the exercise of this Warrant. 
 ARTICLE 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER. The Holder represents and warrants to the Company as follows: 
 4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon exercise of this Warrant by the Holder will be acquired for
investment for the Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act. Holder also represents that the Holder has not been formed for the specific purpose of
acquiring this Warrant or the Shares. 
 4.2 Disclosure of Information. The Holder has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. The Holder further has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to 

  

 5 

 
obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to
verify any information furnished to the Holder or to which the Holder has access. 
 4.3 Investment Experience. The Holder understands
that the purchase of this Warrant and its underlying securities involves substantial risk. The Holder has experience as an investor in securities of companies in the development stage and acknowledges that the Holder can bear the economic risk of
such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial or business matters that the Holder is capable of evaluating the merits and risks of its investment in this Warrant and
its underlying securities and/or has a preexisting personal or business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables the Holder to be aware of the character,
business acumen and financial circumstances of such persons. 
 4.4 Accredited Investor Status. The Holder is an “accredited
investor” within the meaning of Regulation D promulgated under the Act. 
 4.5 The Act. The Holder understands that this Warrant
and the Shares issuable upon exercise or conversion hereof have not been registered un the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment
intent as expressed herein. The Holder understands that this Warrant and the Shares issued upon any exercise or conversion hereof must be held indefinitely unless subsequently registered under the 1933 Act and qualified under applicable state
securities laws, or unless exemption from such registration and qualification are otherwise available. 
 ARTICLE 5. MISCELLANEOUS. 
 5.1 Term: This Warrant is exercisable in whole or in part at any time and from time to time on or before the Expiration Date. 
 5.2 Market Stand-Off. Holder agrees to be bound by the “Market Stand-Off” provision (the “Market Stand-Off Agreement”) in
Section 2.12 of the Company’s Investors’ Rights Agreement. Until the earlier to occur of (i) the exercise or conversion in full of this Warrant, or (ii) the Expiration Date, the Market Stand-Off Agreement provisions set
forth in the Investors’ Rights Agreement may not be amended, modified or waived, without the prior written consent of the Holder, unless such amendment, modification or waiver affects the rights associated with the Shares in the same manner as
such amendment, modification or waiver affects the rights associated with all other shares of the same series and class as the Shares issuable pursuant to this Warrant. 
  

 6 

 5.3 Legends. The Shares (and the securities issuable, directly or indirectly, upon conversion of
the Shares, if any) shall be imprinted with a legend in substantially the following form: 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM SUCH REGISTRATION. 
 5.4 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon exercise of this Warrant (and the securities issuable,
directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by the transferor and the transferee (including, without
limitation, the delivery of investment representation letters (and, in the case of a transfer of this Warrant, an executed Assignment substantially in the form of Appendix 3 hereof) and legal opinions reasonably satisfactory to the Company, as
reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to Silicon Valley Bancshares (Holder’s parent company) or any other affiliate of Holder. Additionally, the Company
shall also not require an opinion of counsel if there is no material question as to the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the
selling broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of Holder’s notice of proposed sale. 
 5.5 Transfer Procedure. Upon receipt by Holder of the executed Warrant, Holder will transfer all of this Warrant to Silicon Valley Bancshares, Holder’s parent company, by execution of an Assignment substantially in the form of
Appendix 2. Subject to the provisions of Article 5.4 and upon providing Company with written notice, Silicon Valley Bancshares and any subsequent Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant
(or the Shares issuable directly or indirectly, upon conversion of the Shares, if any) to any transferee, provided, however, in connection with any such transfer, Silicon Valley Bancshares or any subsequent Holder will give the Company notice of
such transfer with the name, address and taxpayer identification number of the transferee and Holder will surrender this Warrant or the certificates representing the Shares issued upon the exercise of this Warrant (or the certificate representing
the securities issued on the conversion of such Shares) to the Company for reissuance to the transferee(s) (and Holder if applicable). The Company may refuse to transfer this Warrant or the Shares issued upon the exercise of this Warrant (or the
securities issued upon the conversion of such shares) to any person who directly competes with the Company. 
  

 7 

 5.6 Notices. All notices and other communications from the Company to the Holder, or vice versa,
shall be deemed delivered and effective (i) when given personally or mailed by first-class registered or certified mail, postage prepaid, or (ii) on the first business day after transmission by facsimile, at such address or such facsimile
number as may have been furnished to the Company or the Holder, as the case may be, in writing by the Company or such holder from time to time. Effective upon receipt of the fully executed Warrant and the initial transfer described in Article 5.5
above, all notices to the Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise: 
 Silicon Valley Bancshares 
 Attn: Treasury Department 
 3003 Tasman Drive, HA 200 
 Santa Clara, CA
95054 
 Telephone: 408-654-7400 
 Facsimile: 408-496-2405 
 Notice to the Company shall be addressed as follows until the Holder receives notice of a change in
address: 
 CardioMEMS, Inc. 
 75 Fifth St., Suite 205 
 Atlanta, GA 30308 
 Attn: David Stern, President and CEO 
 FAX: (404) 885-9974 
 5.7 Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the
Company and the Holder. 
 5.8 Attorney’s Fees. In the event of any dispute between the parties concerning the terms and
provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorney’s fees. 
 5.9 Automatic Conversion upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share (or other security
issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Exercise Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be converted pursuant to
Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised or converted, and the Company shall promptly deliver a certificate representing the Shares (or such other securities) issued
upon such conversion to the Holder. 
 5.10 Counterparts. This Warrant may be executed in counterparts, all of which together shall
constitute one and the same agreement. 
  

 8 

 5.11 Governing Law. This Warrant shall be governed by and construed in accordance with the laws of
the State of California, without giving effect to its principles regarding conflicts of law. 
  

			
	“COMPANY”
	
	CardioMEMS, Inc.
		
	By:	 	  

	Name:	 	  

		 	(Print)
	Title:	 	Chairman of the Board, President or Vice President
		
	By:	 	  

	Name:	 	
		 	(Print)
	Title:	 	Chief Financial Officer, Secretary, Assistant Treasurer or Assistant Secretary

  

 9 

			
	“HOLDER”
	
	Silicon Valley Bank
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Warrant Effective Date:

  

 10 

 APPENDIX 1 
 NOTICE OF EXERCISE 
 1. Holder elects to purchase
             shares of the Series B Preferred Stock of CardioMEMS, Inc. pursuant to the terms of the attached Warrant, and tenders payment of the purchase price of the shares in
full. 
 [or] 
 1. Holder elects
to convert the attached Warrant into Shares in the manner specified in the Warrant. This conversion is exercised for              of the Shares covered by the Warrant. 
 [Strike paragraph that does not apply.] 
 2.
Please issue a certificate or certificates representing the shares in the name specified below: 
  

	
	  

	Holders Name
	
	  

	  

	(Address)

 3. By its execution below and for the benefit of the Company, Holder hereby restates each of the
representations and warranties in Article 4 of the Warrant as the date hereof. 
  

			
	HOLDER:
	
	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	(Date):	 	  

 APPENDIX 2 
 ASSIGNMENT 
 For value received, Silicon Valley Bank hereby sells, assigns and transfers unto 
  

			
	Name:	    	Silicon Valley Bancshares
	Address:	    	3003 Tasman Drive (HA-200)
		    	Santa Clara, CA 95054
	Tax ID:	    	91-1962278

 that certain Warrant to Purchase Stock issued by CardioMEMS, Inc. (the “Company”), on
                , 2004 (the “Warrant”) together with all rights, title and interest therein. 
  

			
	SILICON VALLEY BANK
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	Date:	 	  

 By its execution below, and for the benefit of the Company, Silicon Valley Bancshares makes each
of the representations and warranties set forth in Article 4 of the Warrant as of the date hereof. 
  

			
	SILICON VALLEY BANCSHARES
		
	By	 	  

	Name:	 	  

	Title:	 	  

  

 2 

 APPENDIX 3 
 ASSIGNMENT 
 For value received,
                     hereby sells, assigns and transfers unto 
  

							
		 	Name:	 	  
	 	
		 	Address:	 	  
	 	
		 		 	  
	 	
		 	Tax ID:	 	  
	 	

 that certain Warrant to Purchase Stock issued by CardioMEMS, Inc. (the “Company”), on
                    , 2004 (the “Warrant”) together with all rights, title and interest therein. 
  

			
	[HOLDER]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	 Date:
	 	  

 By its execution below, and for the benefit of the Company,
                     makes each of the representations and warranties set forth in Article 4 of the Warrant as of the date hereof. 

 

			
	[Transferee]	 	
		
	By	 	  

	Name:	 	  

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]