Document:

EX-10.3

 Exhibit 10.3 
  

 
 May 1, 2015 

Mr. Thomas G. Mitchell 
 310 San Marco Drive 

Fort Lauderdale, FL 33301
 Dear Tom: 

This letter agreement (the “Agreement”), which is effective on the Effective Date as defined below, confirms the terms, mutually agreed upon by you
and Violin Memory, Inc. (the “Company”), of your transition of employment and eventual separation from the Company as a regular full-time employee. You and the Company agree as follows: 

 

	1.	Change of Control and Severance Agreement. The Change of Control and Severance Agreement between you and the Company, effective February 14, 2014, is terminated, effective immediately, and is of no further
force or effect. 

  

	2.	Transition. You will remain employed by the Company until October 31, 2015 (the “Transition Period”). During the Transition Period, there will be no change in your current base annual compensation
or health and welfare benefits, but you will not be eligible for any bonus payment, and your equity grants and awards will continue to vest in accordance with the terms and conditions of the grants and awards. During the Transition Period, you will
provide such services as the Company reasonably may request in connection with the required transition to your successor as the Company’s Senior Vice President, Global Field Operations. 

 

	3.	Termination of Employment. On October 31, 2015, your employment by the Company will terminate (the “Termination Date”). If you elect to continue your present coverage pursuant to the provisions of
the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company will reimburse you for your COBRA expenses for a period of six (6) months following the Separation Date, or through April, 2016, conditioned upon your
providing to the Company an additional standard release of claims, in a form reasonably acceptable to the Company, and effective October 31, 2015. 

  

	4.	Exercise of Vested Stock Options. Following the Termination Date, you will have ninety (90) days during which you may exercise any vested stock options in accordance with the provisions of your stock option
agreement(s) with the Company. 

 Thomas Mitchell 

May 2015 
  Page
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	5.	Payments on the Termination Date. On the Termination Date, the Company will pay you all accrued salary, and all accrued and unused PTO earned through the Termination Date, subject to all required payroll
deductions and withholdings. You are entitled to these payments regardless of whether or not you sign this Agreement. 

  

	6.	Tax Matters. The Company will withhold required federal, state and local taxes from all payments contemplated by this Agreement. Other than the Company’s obligation and right to withhold, you will be
responsible for any and all taxes, interest, and penalties that may be imposed with respect to the payments contemplated by this Agreement, including but not limited to those imposed under Internal Revenue Code Section 409A. 

 

	7.	Other Compensation or Benefits. You acknowledge and agree that, except as expressly provided in this Agreement, you will not receive, and are not owed or entitled to, any additional compensation, benefits or
termination pay after the Termination Date. Thus, for any employee benefits sponsored by the Company not specifically referenced in this Agreement, you acknowledge and agree that you will be treated as a terminated employee effective on your
Termination Date. This includes but is not limited to the 401(k) plan, life insurance, accidental death and dismemberment insurance, and short and long-term disability insurance. 

 

	8.	Expense Reimbursement. You agree that, within ten (10) days of the Termination Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred
through the Termination Date, if any, for which you seek reimbursement. The Company will reimburse you for these expenses in accordance with its regular expense reimbursement practices and procedures. 

 

	9.	Return of Company Property. When requested by the Company, you agree to return to the Company all hard copy and electronic documents (and all copies thereof) and all other Company property that you have had in
your possession at any time, including, but not limited to, files, notes, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded information (including email), tangible property (laptop computer,
cell phone, PDA, etc.), credit cards, entry cards, identification badges and keys; and, any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). If you discover
after the Termination Date that you have retained any Company proprietary or confidential information, you agree, immediately upon discovery to contact the Company and make arrangements for returning the information. 

 

	10.	Post-Employment Restrictions. You acknowledge and agree that your Proprietary Information and Inventions Agreement with the Company, a copy of which is attached as Exhibit A, as amended below,
remains in full force and effect including but not limited to your continuing obligations that prohibit your use or disclosure of any confidential or proprietary information of the Company and solicitation of Company employees and customers. You
and the Company agree that, effective upon the 

 Thomas Mitchell 

May 2015 
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Termination Date, the last sentence of Section 4.a.(i) of the PIIA is amended to read as follows: “Solicit means to (i) service, take orders from or solicit the
business of or patronage of any Business Partner, which business or patronage relates to enterprise data storage, (see Exhibit B for a list of Companies considered, however not all inclusive), for myself or any other person or entity other than the
Company, (ii) divert, entice or otherwise take away from the Company any enterprise data storage business or patronage of any Business Partner, or attempt to do so, or (iii) solicit, induce or encourage any Business Partner to terminate or
reduce its relationship with the Company.” 

  

	11.	Confidentiality. You agree to hold the facts of the existence of this Agreement and its provisions in the strictest confidence and that you will not be publicize or disclose that information in any manner
whatsoever; provided, however, that you may disclose this Agreement confidence: (a) to your immediate family; (b) to your attorneys, accountants, tax preparers, and financial advisors; and (c) provided such disclosure is
necessary to enforce its terms or as otherwise required by law. You agree not to disclose the existence or terms of this Agreement to any current or former Company employee. 

 

	12.	Mutual Non-disparagement. You agree not to disparage the Company, its officers, directors, employees or agents; provided, however, that statements which are made in good faith in response to any question, inquiry
or request for information required by legal process shall not violate this paragraph. The Company agrees not disparage you in statements which are made in good faith in response to any question, inquiry or request for information required by legal
process. 

  

	13.	 Release of All Claims. Except as set forth in this section and as otherwise set forth in this Agreement, to the fullest extent permitted by
applicable law, you hereby release, acquit and forever discharge the Company, and their affiliates, officers, agents, administrators, servants, employees, attorneys, successors, parent, subsidiaries, assigns and affiliates (the “Released
Party” or “Released Parties”), of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise,
known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements, events, acts, omissions, or conduct at any time prior to and including the date you sign this Agreement. This general
release includes, but is not limited to: (i) claims and demands arising out of or in any way connected with your employment with the Company, or the termination of that employment; (ii) claims or demands related to your compensation or
benefits with the Company, including but not limited to, wages, salary, bonuses, commissions, vacation pay, fringe benefits, expense reimbursements, incentive pay, severance pay, or any other form of compensation; (iii) claims pursuant to any
federal, state or local law, statute, or cause of action including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees or other claim arising under the federal Civil Rights Act of 1964, as amended; the
federal Americans with Disabilities Act of 1990, as amended; the federal Age Discrimination in Employment Act of 1967, as amended (the “ADEA”); the federal Family Medical Leave Act, as amended; the federal Worker

 Thomas Mitchell 

May 2015 
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Adjustment and Retraining Notification Act, as amended; the Employee Retirement Income Security Act of 1974, as amended; California Fair Employment and Housing Act (Cal. Gov’t Code
§12900 et seq.); California Family Rights Act (Cal. Gov. Code §12945.2); California Spousal Military Leave Law (Cal. Mil. & Vet. Code §395.10); California WARN Act (Cal. Lab. Code §1400 et seq.); Massachusetts Fair
Employment Practices Law; Pennsylvania Human Relations Act; New Hampshire Revised Statute Annotated 354-A, as amended; (iv) all tort claims, including without limitation, claims for fraud, defamation, emotional distress, and discharge in
violation of public policy; and (v) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing, including claims arising out of an Employment Agreement, sales commission plan or
incentive compensation plan applicable to your employment with the Company (the “Release”). To the extent permitted by law, you also agree never directly or indirectly to bring or participate in an action against any Released Party under
California Business & Professions Code Section 17200 or any unfair competition law of any jurisdiction. 

 You
and the Company acknowledge and agree that any claims which by law cannot be waived in a private agreement between an employer and employee are excluded from the Release. In addition, you and the Company acknowledge and agree that the Release does
not prohibit you from filing a charge with the Equal Employment Opportunity Commission (the “EEOC”) or equivalent state agency in your state or from participating in an EEOC or state agency investigation. You agree to waive your right to
monetary or other recovery should any claim be pursued with the EEOC, state agency, or any other federal, state or local administrative agency on your behalf arising out of or in connection with your employment by or separation from the Company.

  

	14.	ADEA Waiver. You acknowledge and agree that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA, as amended. You also acknowledge and agree that the consideration
provided for in this Agreement is sufficient consideration for the Release and is in addition to anything of value to which you were already entitled. You further acknowledge and agree that you have been advised by this section of the Agreement, as
required by the ADEA, that: (a) your waiver and release do not apply to any rights or claims that may arise after the execution date of this Agreement; (b) you have the right to consult with an attorney prior to executing this Agreement;
(c) you waive your right to any legally required period of time from the date of this Agreement to execute this Agreement; (d) you have seven (7) days following the execution of this Agreement by the parties to revoke the Agreement;
and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Agreement is executed by you, provided that the Company has also executed this Agreement by that
date (the “Effective Date”); and (f) this Agreement does not affect your ability to test the knowing and voluntary nature of this Agreement.  

 Thomas Mitchell 

May 2015 
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	15.	No Actions or Claims. You represent that you have not filed any charges, complaints, grievances, arbitrations, lawsuits, or claims against the Company, with any local, state or federal agency, union or court from
the beginning of time to the date of execution of this Agreement and that you will not do so at any time hereafter, based upon events occurring prior to the date of execution of this Agreement. In the event any agency, union, or court ever assumes
jurisdiction of any lawsuit, claim, charge, grievance, arbitration, or complaint, or purports to bring any legal proceeding on your behalf, you will ask any such agency, union, or court to withdraw from and/or dismiss any such action, grievance, or
arbitration, with prejudice. 

  

	16.	Waiver. In agreeing to the Release, you acknowledge and agree that you understand that the Release includes a release of all claims known or unknown. In agreeing to the Release, which includes claims which may be
unknown to you at present, you acknowledge and agree that you have read and understand Section 1542 of the California Civil Code which reads as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” You hereby expressly waive and relinquish all rights and benefits under that section
and any law of any jurisdiction of similar effect with respect to the release of any unknown or unsuspected claims you may have against the Company. 

  

	17.	Acknowledgements and Representations. You acknowledge, agree and represent that you have not suffered any discrimination or harassment by any of the Released Parties on account of your race, gender, national
origin, religion, marital or registered domestic partner status, sexual orientation, age, disability, medical condition or any other characteristic protected by law. You acknowledge and represent that you have not been denied any leave, benefits or
rights to which you may have been entitled under the FMLA or any other federal or state law, and that you have not suffered any job-related wrongs or injuries for which you might still be entitled to compensation or relief. You further acknowledge
and represent that, except as expressly provided in this Agreement, you have been paid all wages, bonuses, compensation, benefits and other amounts that any of the Released Parties have ever owed to you, and you understand that you will not receive
any additional compensation, severance, or benefits after the Termination Date. 

  

	18.	Miscellaneous. This Agreement, including Exhibit A, as amended, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to this subject matter;
provided however, that the Indemnification Agreement between you and the Company remains in full force and effect. This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly
contained herein, and it supersedes any other such promises, warranties or representations. This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company. This Agreement will bind
the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or
unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified by the court so as to be rendered enforceable. This Agreement will be deemed to have been
entered into and will be construed and enforced in accordance with the laws of the State of California, exclusive of conflicts of laws provisions. 

 Thomas Mitchell 

May 2015 
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 If this Agreement is acceptable to you, please sign below and return the original to Ms. Tracy Laboy,
Senior Director, Global Human Resources, at Violin Memory, Inc., 4555 Great America Parkway, Suite 150, Santa Clara, CA 95054 ATTN: Ms. Tracy Laboy. 
  

					
	Sincerely,				Agreed and Accepted:
			
	/s/ Gary Lloyd				/s/ Thomas G. Mitchell
			
	Gary Lloyd				Thomas G. Mitchell
	Vice President, General Counsel and				
	Secretary, Violin Memory, Inc.				

 Thomas Mitchell 

May 2015 
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 EXHIBIT A 

Proprietary Information Agreement 

 Thomas Mitchell 

May 2015 
  Page
 8
 
  

 EXHIBIT B 

Companies Considered to be Enterprise Storage Competitors 
  

			
	Dell		IBM
	Direct Data Networks (DDN)		Microsoft Windows Azure
	EMC		Nirvanix
	Fujitsu		Rackspace
	Hitachi Data Systems (HDS)		StorSimple
	HP		Zetta
	IBM		Solidfire
	NetApp		Kaminario
	NetGear		Nimbus
	Nutanix		Tegile
	Nimble		WD/HitachiGST
	Oracle		Seagate
	PureStorage		Fujitsu
	SanDisk		Facebook
	Tandberg Data		Huawei
	Cisco (Whiptail)		Simplivity
	X-IO		Dot Hill
	ADrive Enterprise		Intel
	Amazon Web Services		VMWare
	Box.com		Egnyte
	Google		

 PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT 

Effective as of the first day of my employment by the Company, the following confirms an agreement between me, the individual identified on the signature page
to this Agreement, and Violin Memory, Inc., a Delaware corporation (the Company). This Agreement is a material part of the consideration for my employment and continued employment by the Company. In exchange for the
foregoing, the parties agree as follows: 

 

 1. NO CONFLICTS. I have not made and agree not to make any agreement, oral or written, that is in
conflict with this Agreement or my employment with the Company. I will not violate any agreement with or the rights of any third party. When acting within the scope of my employment (or otherwise on behalf of the Company), I will not use or disclose
my own or any third party’s confidential information or intellectual property (collectively, Restricted Materials), except as expressly authorized by the Company in writing. Further, I have not retained anything
containing any confidential information of a prior employer or other third party, whether or not created by me. 
 2. INVENTIONS. 

a. Definitions. Intellectual Property Rights means any and all patent rights, copyright rights,
mask work rights, trade secret rights, sui generis database rights and all other intellectual and industrial property rights of any sort throughout the world (including any application therefor). Invention
means any idea, concept, discovery, invention, development, technology, work of authorship, trade secret, software, firmware, tool, process, technique, know-how, data, plan, device, apparatus, architecture, specification, design, circuit, layout,
mask work, algorithm, program, code, documentation or other material or information, tangible or intangible, whether or not it may be patented, copyrighted or otherwise protected (including all versions, modifications, enhancements and derivative
works thereof). 
 b. Assignment. To the fullest extent under applicable law, the Company shall own all right, title and
interest in and to all Inventions (including all Intellectual Property Rights therein or related thereto) that are made, conceived or reduced to practice, in whole or in part, by me during the term of my employment with the Company and which arise
out of any use of the Company’s facilities or assets or any research or other activity conducted by, for or under the direction of the Company (whether or not conducted at the Company’s facilities, during working hours or using Company
assets), or which are useful with or relate directly or indirectly to any Company Interest (meaning any product, service, other Invention or Intellectual Property Right that is sold, leased, used or under consideration or development
by the Company); provided, however, that the foregoing shall not require me to assign any Invention if Cal. Lab. Code § 28701 prohibits such assignment. I will
promptly 

 
disclose and provide all of the foregoing Inventions (the Assigned Inventions) to the Company. I hereby make and agree to make all assignments to the Company necessary to accomplish
the foregoing ownership. Assigned Inventions shall not include any Invention (i) that I develop entirely on my own time, (ii) without use of any Company assets and (iii) which is not useful with and does not relate to any Company
Interest. 
 c. Assurances. I will further assist the Company, at its expense, to evidence, record and perfect such assignments, and
to perfect, obtain, maintain, enforce and defend any rights specified to be so owned or assigned. I hereby irrevocably designate and appoint the Company as my agent and attorney-in-fact to act for and in my behalf to execute and file any document
and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by me. 

d. Other Inventions. If I wish to clarify that something created by me prior to my employment that relates to the Company’s
actual or proposed business is not within the scope of the assignment of Inventions under this Agreement, I have listed it on Appendix A. If (i) I use or disclose any Restricted Materials (including anything listed in
Appendix A) when acting within the scope of my employment (or otherwise on behalf of the Company), or (ii) any Assigned Invention cannot be fully made, used, reproduced or otherwise exploited without using or violating any
Restricted Materials, I hereby grant and agree to grant to the Company a perpetual, irrevocable, worldwide, royalty-free, non-exclusive, sublicensable right and license to exploit and exercise all such Restricted Materials and Intellectual Property
Rights therein. I will not use or disclose any Restricted Materials for which I am not fully authorized to grant the foregoing license. 

 

	1 	Cal. Lab. Code § 2870 provides: (a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer
shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) relate at
the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or (2) result from any work performed by the employee for the
employer, (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of
this state and is unenforceable. 

 

  
 Page 1 

 e. Moral Rights.
To the fullest extent allowed by applicable law, the terms of this Section 2 include all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as moral rights,
artist’s rights, droit moral or the like (collectively, Moral Rights). To the extent I retain any such Moral Rights under applicable law, I hereby ratify and consent to any action
that may be taken with respect to such Moral Rights by or authorized by the Company and agree not to assert any Moral Rights with respect thereto. I will confirm any such ratification, consent or agreement from time to time as requested by the
Company. 
 3. PROPRIETARY INFORMATION. I agree that all Assigned Inventions and all other business, technical and financial
information, including the identity of and information relating to the Company’s employees, Affiliates and Business Partners (as such terms are defined below), which I develop, learn or obtain during my employment that relate to the Company or
the business or demonstrably anticipated business of the Company, or that are received by or for the Company in confidence, constitute Proprietary Information. I will hold in confidence and not disclose or, except within
the scope of my employment, use any Proprietary Information. Proprietary Information will not Include information that I can document is or becomes readily publicly available without restriction through no fault of mine. Upon termination of my
employment, I will promptly return to the Company all items containing or embodying Proprietary Information (including all copies), except that I may keep my personal copies of (a) my compensation records, (b) materials distributed to
shareholders generally and (c) this Agreement. I also recognize and agree that I have no expectation of privacy with respect to the Company’s networks, telecommunications systems or information processing systems (including, without
limitation, stored computer files, electronic mail messages and voice messages), and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice. 

4. RESTRICTED ACTIVITIES. For the purposes of this Section 4, the term Company includes the Company and all other persons or
entities that control, are controlled by or are under common control with the Company (Affiliates). 
 a.
Definitions. Any Capacity includes, without limitation, to (i) be an owner, founder, shareholder, partner, member, advisor, director, consultant, contractor, agent, employee, affiliate or co-venturer, (ii) otherwise
invest, engage or participate in, (iii) be compensated by or (iv) prepare to be or do any of the foregoing or to assist any third party to do so; provided, that the term Any Capacity will not include being a holder of less than
one percent (1%) of the outstanding equity of a public company. Business Partner means any past, present or prospective customer, vendor, supplier, distributor or other business partner of the Company with which I have contact
during my 

 
employment, Induce means to recruit, employ, retain or otherwise solicit, induce or influence (or to attempt to do so). Solicit means to
(i) service, take orders from or solicit the business or patronage of any Business Partner for myself or any other person or entity other than the Company, (ii) divert, entice or otherwise take away from the Company the business or patronage of
any Business Partner, or to attempt to do so, or (iii) solicit, induce or encourage any Business Partner to terminate or reduce its relationship with the Company. 

b. Acknowledgments. I acknowledge and agree that (i) the Company’s business is highly competitive, secrecy of the
Proprietary Information is of the utmost importance to the Company and I will learn and use Proprietary Information in performing my work for the Company and (ii) my position will require me to establish goodwill with Business Partners and employees
on behalf of the Company and such goodwill is extremely important to the Company’s success. 
 c. As an Employee. During my
employment with the Company, I will not, directly or indirectly (i) Induce any person to leave his or her employment with the Company (other than terminating subordinate employees in the course of my duties for the Company), (ii) Solicit
any Business Partner or (iii) act in Any Capacity in or with respect to any commercial activity that directly competes or is reasonably likely to directly compete with any business which the Company conducts, or demonstrably anticipates
conducting, at any time during my employment. 
 d. After Termination. For the period of 1 year immediately following termination of
my employment with the Company (for any or no reason, whether voluntary or involuntary), I will not, without the prior written consent of the Company, directly or indirectly (i) Induce any person to leave his or her employment with the Company
or (ii) Solicit any Business Partner. 
 e. Enforcement. I understand that the restrictions set forth in this Section 4 are
intended to protect the Company’s interest in its Proprietary Information and established relationships and goodwill with employees and Business Partners, and I agree that such restrictions are reasonable and appropriate for this purpose. If at
any time any of the provisions of this Section 4 are deemed invalid or unenforceable or are prohibited by the laws of the state or place where they are to be performed or enforced, by reason of being vague or unreasonable as to duration or
geographic scope or scope of activities restricted, or for any other reason, such provisions shall be considered divisible and shall become and be immediately amended to include only such restrictions and to such extent as shall be deemed to be
reasonable and enforceable by the court or other body having jurisdiction over this Agreement. The Company and I agree that the provisions of this Section 4, as so amended, shall be valid and binding as though any invalid or
unenforceable provision had not been included. 

 

  
 Page 2 

 5. EMPLOYMENT AT WILL. I agree that this Agreement is not an employment contract for any particular term.
I have the right to resign and the Company has the right to terminate my employment at will, at any time, for any or no reason, with or without cause. This Agreement does not purport to set forth all of the terms and conditions of my employment,
and, as an employee of the Company, I have obligations to the Company which are not described in this Agreement. However, the terms of this Agreement govern over any such terms that are inconsistent with this Agreement, and supersede the terms of
any similar form that I may have previously signed. This Agreement can only be changed by a subsequent written agreement signed by the President of the Company (or authorized designee). 

6. SURVIVAL. I agree that any change or changes in my employment title, duties, compensation or equity interest after the signing of this Agreement
shall not affect the validity of scope of this Agreement. I agree that my obligations under Sections 2, 3 and 4 of this Agreement shall continue in effect after termination of my employment, regardless of the reason, and whether such termination is
voluntary or involuntary, and that the Company is entitled to communicate my obligations under this Agreement to any of my potential or future employers. My obligations under Sections 2, 3 and 4 also shall be binding upon my heirs, executors,
assigns and administrators, and shall inure to

 
the benefit of the Company, its Affiliates, successors and assigns. This Agreement may be freely assigned by the Company to any third party. 

7. GOVERNING LAW; REMEDIES. Any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State
of California without regard to the conflict of laws provisions thereof. The failure of either party to enforce its rights under this Agreement at any time for any period shall not be construed as a waiver of such rights. Unless expressly provided
otherwise, each right and remedy in this Agreement is in addition to any other right or remedy, at law or in equity, and the exercise of one right or remedy will not be deemed a waiver of any other right or remedy. I further agree that if one or
more provisions of this Agreement are held to be illegal or unenforceable under applicable law, such illegal or unenforceable portion shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall
otherwise remain in full force and effect and enforceable. I also understand that any breach or threatened breach of this Agreement will cause irreparable harm to the Company for which damages would not be an adequate remedy, and, therefore, the
Company will be entitled to injunctive relief with respect thereto (without the necessity of posting any bond) in addition to any other remedies.

 

  
 I HAVE READ THIS AGREEMENT CAREFULLY
AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE
UNDERSTANDING THAT ONE COUNTERPART WILL BE RETAINED BY THE COMPANY AND THE OTHER COUNTERPART WILL BE RETAINED BY ME. 
  

							
	VIOLIN MEMORY, INC.	 		 	EMPLOYEE
				
	By:	 	/s/ Mona Stefanik	 		 	/s/ Thomas G. Mitchell                     2/14/2014
		 	Name: Mona Stefanik	 		 	Name: Thomas G. Mitchell
		 	Title: Senior Human Resources Generalist	 		 	

  
 Page 3 

 Appendix A 

PRIOR MATTERS 
 None. 

  
 Page 4ex10-1.htm

Exhibit 10.1

 

AGREEMENT

 

THIS AGREEMENT (this “Agreement”) is entered into on May 5, 2015, by and between VistaGen Therapeutics, Inc., a Nevada corporation (the “Company”), and Platinum Long Term Growth VII, LLC, a Delaware limited liability corporation (“Platinum”).

 

WHEREAS, Platinum is the holder of certain Senior Secured Convertible Promissory Notes of the Company, issued on the dates and in the principal amounts and with accrued interest as set forth on Schedule A hereto (the “Platinum Notes”);

WHEREAS, in order to secure the Company’s obligations to Platinum under the terms of the Platinum Notes, the Company and Platinum entered into (i) the Amended and Restated Security Agreement (the “Security Agreement”), pursuant to which Platinum was granted a security interest in substantially all of the Company’s assets; and (ii) a Negative Covenant (the “Negative Covenant”), prohibiting VistaGen Therapeutics, Inc., a California corporation and wholly owned subsidiary of the Company (“VistaGen California”), and Artemis Neuroscience, Inc., a Maryland corporation and wholly owned subsidiary of VistaGen California (“Artemis) (together, the “Subsidiaries”), from incurring, among other things, certain kinds of liens or indebtedness, and from agreeing to any merger or other organizational change;

WHEREAS, in addition, the Company, the Subsidiaries and Platinum entered into the Intellectual Property and Stock Pledge Agreement (the “IP Security Agreement”), pursuant to which Platinum was granted a security interest in (i) all intellectual property of VistaGen California, and (ii) all of the capital stock and other equity interests of VistaGen California in Artemis;

WHEREAS, the Company has also issued to Platinum certain Exchange Warrants, Investment Warrants and Additional Warrants, as each is defined in that certain Note Exchange and Purchase Agreement, dated October 11, 2012, as amended (together, the “Warrants”), and issued on the dates and in the share amounts set forth on Schedule B;

WHEREAS, to provide for its working capital needs, the Company issued to certain investors, including Platinum (“Note Investors”) convertible promissory notes in the aggregate amount of $4,614,756.56, including aggregate accrued interest through May 8, 2015 of $317,873.23 (“Investor Notes”), which Investor Notes are due and payable between March 31, 2015 and May 15, 2015, and convertible into the Private Financing under the terms and conditions set forth in the Investor Notes; and

WHEREAS, the Company proposes to sell in a private financing contemplating aggregate gross proceeds, including cancellation of indebtedness, of up to $18.0 million (the “Private Financing”), units consisting of Series B Preferred Stock (“Series B Preferred”) and warrants to purchase shares of the Company’s common stock, par value $0.001 per share (“Common Stock Warrants” and together with the Series B Preferred, “Private Financing Securities”) in connection with Platinum’s agreement as set forth herein to (i) convert the principal balance and all accrued but unpaid interest due and owing Platinum under the terms of the Platinum Notes (the “Outstanding Balance”) into Series B Preferred;  (ii) terminate the Security Agreement, Negative Covenant and IP Security Agreement (together, the “Security Agreements”); (iii) purchase the Investor Notes from the Investors electing to sell, transfer and assign such Investor Notes to Platinum, for an aggregate amount, including principal and all accrued interest due thereunder, not to exceed $1.5 million; (v) purchase $1.0 million of the Private Financing Securities, (v) amend the Warrants to (y) fix the exercise price thereof and the number of shares exercisable and issuable thereunder, and (z) eliminate the cashless exercise option; (vi) exchange up to  30,000 shares of Common Stock currently beneficially owned or controlled by Platinum (the “Platinum Common Shares”) for an equal number of shares of Series B Preferred; and (vii) lock-up the sale of any Platinum Common Shares.

  

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

 

1.          Platinum Note Conversion. Upon receipt of confirmation from the Nevada Secretary of State of the filing of the Company’s Certificate of Determination or Rights and Preferences of the Series B Preferred (the “Closing Date”), the Outstanding Balance due Platinum under the terms of the Notes shall convert into 641,335 shares of Series B Preferred of the Company issued in connection with the Private Financing, in an amount equal to the Outstanding Balance on the Closing Date (the “Conversion Securities”).

  

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2.          Manner of Conversion/Termination of Platinum Notes. On the Closing Date, the Company shall deliver to the Company’s transfer agent an irrevocable notice to issue and deliver to Platinum a certificate or certificates or other document evidencing the Conversion Securities (the “Conversion Instructions”).  Upon receipt by Platinum of the Conversion Instructions and the Conversion Securities, the Platinum Notes shall be deemed paid in full, including accrued interest thereon, and all rights of Platinum under the Platinum Notes shall terminate and be of no further force and effect.

3.          Termination of the Security Agreements. On the Closing Date, the Security Agreements shall terminate and be of no further force and effect, and Platinum shall execute any release, termination statement, or other document reasonably requested by the Company necessary to release Platinum’s security or other interest in and to any and all assets of the Company and the Subsidiaries granted or issued to Platinum under the terms of the Security Agreements, including by way of example and not by limitation, Platinum’s security interest in and to any and all intellectual property of VistaGen California.

4.         Purchase of Investor Notes and Private Financing Securities.

4.1              During the period commencing on the Closing Date and continuing for fifteen (15) days (the “Transfer Period”), Platinum shall purchase directly from Note Investors who have elected to sell, transfer and assign to Platinum the Investor Notes listed on Schedule C hereto during the Transfer Period, which Investor Notes in aggregate amount equal approximately $1,487,913.73, which amount includes principal and accrued interest thereon (“Note Assignments”).  Upon the consummation of such Note Assignments, on the Closing Date, Platinum as the holder of all of the Investor Notes agrees to convert the aggregate amount of the Investor Notes purchased by Platinum from the Company and from the Note Investors into the securities issued in connection with the Private Financing under the terms set forth in the Investor Notes.

4.2              On the Closing Date, Platinum shall execute and deliver a subscription agreement providing for Platinum’s purchase of $1.0 million of Private Financing Securities. Prior to the later of (i) thirty (30) days after the Closing Date, or (ii) as requested by the Company, Platinum shall deliver to the Company by wire transfer or other immediately available funds $1.0 million pursuant to such subscription agreement.

5.         Amendment to Warrants.   On the Closing Date, (i) the exercise price of the Warrants shall be fixed at $7.00 per share, and no other adjustments shall be made to the Warrants, including any adjustments to the number of shares exercisable or issuable thereunder, in the event the Company thereafter issues Common Stock at a price less than $7.00 per share, or securities with an exercise or conversion price less than $7.00 per share; provided, that typical adjustments for splits, combinations and dividends shall apply, it being the intent hereof that Sections 4.1, 4.2 and 4.3 of the Warrants shall remain in effect; (ii) subject to the foregoing, any further terms set forth in the Warrants permitting any adjustments to the exercise price thereof or the number of shares issuable upon exercise of such Warrants shall be terminated and deleted; and (iii) any provision set forth in the Warrants permitting the cashless exercise of the Warrants shall be terminated and eliminated, so that all Warrants shall be solely exercised for cash.  To the extent of any conflicts between the terms and conditions set forth in the Warrants, and the terms and conditions set forth herein in this Section 5, the terms herein shall control.

6.          Lock-Up.  For the period commencing upon the Closing Date and continuing until the Registration Statement (as defined in the Securities Purchase Agreement dated May 8, 2015) is deemed effective, Platinum shall not sell any Platinum Common Stock for less than $15.00 per share.

7.         Issuance of Shares.  For and in consideration for the agreements of Platinum as set forth in this Agreement, effective on the Closing Date, the Company shall issue to Platinum (i) 400,000 shares of Series B Preferred (“New Shares”), and (ii) a warrant to purchase 1.2 million shares of Common Stock at an exercise price equal to $7.00 per share, which price shall equal the fixed exercise price of the warrants issued in connection with the Private Financing, and containing such additional terms and conditions as are set forth therein (“New Warrants”).

 

8.           Representations, Warranties and Covenants of Platinum.  Platinum hereby makes the following representations and warranties to the Company, and covenants for the benefit of the Company:

 

(a)           Platinum is a limited liability company validly existing and in good standing under the laws of the jurisdiction of its organization.

 

  

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(b)           This Agreement has been duly authorized, validly executed and delivered by Platinum and is a valid and binding agreement and obligation of Platinum enforceable against Platinum in accordance with its terms, subject to limitations on enforcement by general principles of equity and by bankruptcy or other laws affecting the enforcement of creditors’ rights generally, and Platinum has full power and authority to execute and deliver the Agreement and the other agreements and documents contemplated hereby and to perform its obligations hereunder and thereunder.

 

(c)           Platinum understands that the Conversion Securities, New Shares and New Warrants (together, “New Securities”) are being offered and sold to it in reliance on specific provisions of Federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of Platinum set forth herein for purposes of qualifying for exemptions from registration under the Securities Act of 1933, as amended (the “Securities Act”) and applicable state securities laws.

 

(d)           Platinum is an “accredited investor” as defined under Rule 501 of Regulation D promulgated under the Securities Act.

 

(e)           Platinum is and will be acquiring the New Securities for Platinum’s own account, for investment purposes, and not with a view to any resale or distribution in whole or in part, in violation of the Securities Act or any applicable securities laws; provided, however, that notwithstanding the foregoing, Platinum does not covenant to hold the New Securities for any minimum period of time.

 

(f)           The offer and sale of the New Securities is intended to be exempt from registration under the Securities Act, by virtue of Section 3(a)(9) and/or 4(2) thereof.  Platinum understands that the New Securities are “restricted securities,” as that term is defined in the Securities Act and the rules thereunder, have not been registered under the Securities Act, and that none of the New Securities can be sold or transferred unless they are first registered under the Securities Act and such state and other securities laws as may be applicable or the Company receives an opinion of counsel reasonably acceptable to the Company that an exemption from registration under the Securities Act is available (and then the New Securities may be sold or transferred only in compliance with such exemption and all applicable state and other securities laws).

 

(g)           Platinum has not assigned, conveyed or otherwise transferred any interest in and to the Platinum Notes to any third party, and owns and holds, beneficially and of record, the entire right, title, and interest in and to the Notes free and clear of all rights and Encumbrances (as defined below). As used herein, “Encumbrances” shall mean any security or other property interest or right, claim, lien, pledge, option, charge, security interest, contingent or conditional sale, or other title claim or retention agreement, interest or other right or claim of third parties, whether perfected or not perfected, voluntarily incurred or arising by operation of law, and including any agreement (other than this Agreement) to grant or submit to any of the foregoing in the future.

 

9.           Representations, Warranties and Covenants of the Company.  The Company represents and warrants to Platinum, and covenants for the benefit of Platinum, as follows:

 

(h)           The Company has been duly incorporated and is validly existing and in good standing under the laws of the state of Nevada, with full corporate power and authority to own, lease and operate its properties and to conduct its business as currently conducted, and is duly registered and qualified to conduct its business and is in good standing in each jurisdiction or place where the nature of its properties or the conduct of its business requires such registration or qualification, except where the failure to register or qualify would not have a Material Adverse Effect.  For purposes of this Agreement, “Material Adverse Effect” shall mean any material adverse effect on the business, operations, properties, prospects, or financial condition of the Company and its subsidiaries and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company to perform any of its obligations under this Agreement in any material respect.

 

(i)           The New Securities have been duly authorized by all necessary corporate action and, when paid for or issued in accordance with the terms hereof, the New Securities shall be validly issued and outstanding, fully paid and nonassessable, free and clear of all liens, encumbrances and rights of refusal of any kind.

 

  

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(j)           This Agreement has been duly authorized, validly executed and delivered on behalf of the Company and is a valid and binding agreement and obligation of the Company enforceable against the Company in accordance with its terms, subject to limitations on enforcement by general principles of equity and by bankruptcy or other laws affecting the enforcement of creditors’ rights generally, and the Company has full power and authority to execute and deliver the Agreement and the other agreements and documents contemplated hereby and to perform its obligations hereunder and thereunder.

 

(k)           The execution and delivery of the Agreement and the consummation of the transactions contemplated by this Agreement by the Company, will not (i) conflict with or result in a breach of or a default under any of the terms or provisions of, (A) the Company’s certificate of incorporation or by-laws, or (B) of any material provision of any indenture, mortgage, deed of trust or other material agreement or instrument to which the Company is a party or by which it or any of its material properties or assets is bound, (ii) result in a violation of any provision of any law, statute, rule, regulation, or any existing applicable decree, judgment or order by any court, Federal or state regulatory body, administrative agency, or other governmental body having jurisdiction over the Company, or any of its material properties or assets or (iii) result in the creation or imposition of any material lien, charge or encumbrance upon any material property or assets of the Company or any of its subsidiaries pursuant to the terms of any agreement or instrument to which any of them is a party or by which any of them may be bound or to which any of their property or any of them is subject except in the case of clauses (i)(B), (ii) or (iii) for any such conflicts, breaches, or defaults or any liens, charges, or encumbrances which would not have a Material Adverse Effect.

 

(l)           The delivery and issuance of the New Securities in accordance with the terms of and in reliance on the accuracy of Platinum’s representations and warranties set forth in this Agreement will be exempt from the registration requirements of the Securities Act.

 

(m)           No consent, approval or authorization of or designation, declaration or filing with any governmental authority on the part of the Company is required in connection with the valid execution and delivery of this Agreement or the offer, sale or issuance of the Conversion Shares or the consummation of any other transaction contemplated by this Agreement.

 

(n)           The Company has complied and will comply with all applicable federal and state securities laws in connection with the offer, issuance and delivery of the New Securities hereunder.

 

 (o)           The Company shall cause its Common Stock to continue to be registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934 (the “Exchange Act”), and not take any action or file any document (whether or not permitted by the Securities Act or the rules promulgated thereunder) to terminate or suspend its reporting and filing obligations under the Exchange Act and the Securities Act, except as permitted herein.  The Company will take all action necessary to continue the listing or trading of its Common Stock on the OTC Bulletin Board or other exchange or market on which the Common Stock is trading.

 

(p)           In the event that the New Securities are sold in a manner that complies with an exemption from registration, the Company shall promptly cause its counsel (at its expense) to issue to the transfer agent an opinion permitting removal of the legend (indefinitely if pursuant to Rule 144(k) of the Securities Act (or its successor provisions, including any provision that permits unlimited resales after the relevant holding period set forth in Rule 144), or to permit sales of the New Securities if pursuant to the other provisions of Rule 144 of the Securities Act).

 

10.           Conditions Precedent to the Obligation of the Company.  The obligation hereunder of the Company to issue and deliver the New Securities to Platinum is subject to the satisfaction or waiver, at or before the Closing Date, of each of the conditions set forth below.  These conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion.

 

(a)           Platinum shall have executed and delivered this Agreement.

 

  

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(b)           Platinum shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by Platinum at or prior to the Closing Date.

 

(c)           The representations and warranties of Platinum shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time, except for representations and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects as of such date.

 

11.           Conditions Precedent to the Obligation of Platinum. The obligation hereunder of Platinum to surrender the Platinum Notes, purchase the Investor Notes and accept the New Securities is subject to the satisfaction or waiver, at or before the Closing Date, of each of the conditions set forth below.  These conditions are for Platinum’s sole benefit and may be waived by Platinum at any time in its sole discretion.

 

(a)           The Company shall have executed and delivered this Agreement.

 

(b)           The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 

(c)           Each of the representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time, except for representations and warranties that speak as of a particular date, which shall be true and correct in all material respects as of such date.

 

(d)           No statute, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement at or prior to the Closing Date.

 

(e)           As of the Closing Date, no action, suit or proceeding before or by any court or governmental agency or body, domestic or foreign, shall be pending against or affecting the Company, or any of its properties, which questions the validity of the Agreement or the transactions contemplated thereby or any action taken or to be taken pursuant thereto.  As of the Closing Date, no action, suit, claim or proceeding before or by any court or governmental agency or body, domestic or foreign, shall be pending against or affecting the Company, or any of its properties, which, if adversely determined, is reasonably likely to result in a Material Adverse Effect.

 

(f)           The Company shall have received confirmation from the Nevada Secretary of State of the filing of the Company’s Certificate of Determination or Rights and Preferences of the Series B Preferred, and shall have delivered to Platinum the Conversion Instructions.

 

12.           Governing Law; Consent to Jurisdiction.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York without giving effect conflicts of law principles that would result in the application of the substantive laws of another jurisdiction.  Each of the Parties consents to the exclusive jurisdiction of the Federal courts whose districts encompass any part of the State of New York in connection with any dispute arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to the bringing of any such proceeding in such jurisdictions.  Each Party waives its right to a trial by jury.  Each Party to this Agreement irrevocably consents to the service of process in any such proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to such Party at its address set forth herein.  Nothing herein shall affect the right of any Party to serve process in any other manner permitted by law.

  

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13.           Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, express overnight courier, registered first class mail, or telecopier (provided that any notice sent by telecopier shall be confirmed by other means pursuant to this Section 8), initially to the address set forth below, and thereafter at such other address, notice of which is given in accordance with the provisions of this Section.

 

if to the Company:

 

VistaGen Therapeutics, Inc.

Attention: Chief Executive Officer

343 Allerton Avenue

South San Francisco, CA 94080

Tel. No.: (650) 577-3613

Fax No.: (888) 482-2602

 

with a copy to:

 

Disclosure Law Group

600 West Broadway, Suite 700

San Diego, California 92101

Attention: Daniel W. Rumsey, Esquire

Tel No.: (619) 795-1134

Fax No.: (619) 330-2101

 

if to Platinum:

 

Platinum Long Term Growth VII, LLC

250 West 55th Street, 14th Floor

New York, NY 10019

Attention: David Steinberg

Tel. No.: (212) 582-2222

Fax No.: (212) 582-2424

 

 

 

All such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; when receipt is acknowledged, if telecopied; or when actually received or refused if sent by other means.

 

14.                 Disclosure of Transaction. The Company shall file with the Securities and Exchange Commission a Current Report on Form 8-K (the “Form 8-K”) describing the material terms of the transactions contemplated hereby as soon as practicable following the Closing Date but in no event more than two (2) business days following the Closing Date.

 

15.                 Entire Agreement.  This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter hereof and supersedes all prior and/or contemporaneous oral or written proposals or agreements relating thereto all of which are merged herein.  This Agreement may not be amended or any provision hereof waived in whole or in part, except by a written amendment signed by both of the Parties.

 

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

 

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IN WITNESS WHEREOF the parties have signed this instrument as of the date first set forth above.

	
ADDRESS:

	  	  	
VISTAGEN THERAPEUTICS, INC.

	
 

343 Allerton Avenue

South San Francisco, CA 94080

 

	  	  	
 

	  	  	  	
By: /s/ Shawn K. Singh

Name: Shawn K. Singh

Title:   Chief Executive Officer

 

	  	  	  	  
	  	  	  	  
	
ADDRESS:

	  	  	
PLATINUM LONG TERM GROWTH VII, LLC

	
 

250 West 55th Street, 14th Floor

New York, NY 10019

	  	  	  
	  	  	  	
By: /s/ David Steinberg

Name: David Steinberg

Title: Authorized Signatory

 

	  	  	  	  

 

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