Document:

EX-10.4

 Exhibit 10.4 
 INDEMNITY AGREEMENT 
 THIS INDEMNITY
AGREEMENT (this “Agreement”) dated as of                      ,
20         is made by and between BIOCEPT, INC., a California corporation (the “Company”), and
                (“Indemnitee”). 
 RECITALS 

A.        The Company desires to attract and retain the services of highly
qualified individuals as directors, officers, employees and agents.  

B.        The Company’s Amended and Restated Bylaws (the
“Bylaws”) provide that the Company shall indemnify its directors and executive officers, and empowers the Company to indemnify its other officers, employees and agents, as authorized by the California Corporations Code, as amended
(the “Code”), under which the Company is organized and such Bylaws expressly provide that the indemnification provided therein is not exclusive and contemplates that the Company may enter into separate agreements with its directors,
officers and other persons to set forth specific indemnification provisions. 

C.        Indemnitee does not regard the protection currently provided by
applicable law, the Company’s governing documents and available insurance as adequate under the present circumstances, and the Company has determined that Indemnitee and other directors, officers, employees and agents of the Company may not be
willing to serve or continue to serve in such capacities without additional protection. 

D.        The Company desires and has requested Indemnitee to serve or
continue to serve as a director, officer, employee or agent of the Company, as the case may be, and has proffered this Agreement to Indemnitee as an additional inducement to serve in such capacity. 

E.        Indemnitee is willing to serve, or to continue to serve, as a
director, officer, employee or agent of the Company, as the case may be, if Indemnitee is furnished the indemnity provided for herein by the Company. 
 AGREEMENT 
 NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to be legally bound, hereby agree as follows: 

 

	 	1.	 Definitions. 

 (a)        Agent.  For purposes of this Agreement, the term “agent” of the Company means any person who: (i) is or was a director,
officer, employee or other fiduciary of the Company or a subsidiary of the Company; or (ii) is or was serving at the request or for the convenience of, or representing the interests of, the Company or a subsidiary of the Company, as a director,
officer, employee or other fiduciary of a foreign or domestic corporation, partnership, joint venture, trust or other enterprise. 

  
 1. 

 (b)         Expenses.
  For purposes of this Agreement, the term “expenses” shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all
attorneys’, witness, or other professional fees and related disbursements, and other out-of-pocket costs of whatever nature), actually and reasonably incurred by Indemnitee in connection with the investigation, defense or appeal of a proceeding
or establishing or enforcing a right to indemnification under this Agreement, the Code or otherwise, and amounts paid in settlement by or on behalf of Indemnitee, but shall not include any judgments, fines or penalties actually levied against
Indemnitee for such individual’s violations of law. The term “expenses” shall also include reasonable compensation for time spent by Indemnitee for which he is not compensated by the Company or any subsidiary or third party
(i) for any period during which Indemnitee is not an agent, in the employment of, or providing services for compensation to, the Company or any subsidiary; and (ii) if the rate of compensation and estimated time involved is approved by the
directors of the Company who are not parties to any action with respect to which expenses are incurred, for Indemnitee while an agent of, employed by, or providing services for compensation to, the Company or any subsidiary. 

(c)         Proceedings.   For purposes of this Agreement, the
term “proceeding” shall be broadly construed and shall include, without limitation, any threatened, pending, or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or
any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, and whether formal or informal in any case, in which Indemnitee
was, is or will be involved as a party or otherwise by reason of: (i) the fact that Indemnitee is or was a director, officer or agent of the Company; (ii) the fact that any action taken by Indemnitee or of any action on Indemnitee’s
part while acting as director, officer, employee or agent of the Company; or (iii) the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise, and in any such case described above, whether or not serving in any such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of
expenses may be provided under this Agreement. 
 (d)
        Subsidiary.   For purposes of this Agreement, the term “subsidiary” means any corporation or limited liability company of which more than 50% of the outstanding voting
securities or equity interests are owned, directly or indirectly, by the Company and one or more of its subsidiaries, and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise
of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary. 
 (e)         Independent Counsel.   For purposes of this Agreement, the term “independent counsel” means a law firm, or a partner (or, if
applicable, member) of such a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such
party, or (ii) any other party to the proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “independent counsel” shall not include any person who, under the applicable standards of
professional conduct then 

  
 2. 

 
prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 

2.        Agreement to Serve.  Indemnitee will serve, or
continue to serve, as a director, officer, employee or agent of the Company or any subsidiary, as the case may be, faithfully and to the best of his ability, at the will of such corporation (or under separate agreement, if such agreement exists), in
the capacity Indemnitee currently serves as an agent of such corporation, so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the bylaws or other applicable charter documents of such
corporation, or until such time as Indemnitee tenders his or her resignation in writing; provided, however, that nothing contained in this Agreement is intended as an employment agreement between Indemnitee and the Company or any of its subsidiaries
or to create any right to continued employment of Indemnitee with the Company or any of its subsidiaries in any capacity. 
 The Company acknowledges that it has entered into this Agreement and assumes the obligations imposed on it hereby, in addition to and separate from its obligations to Indemnitee under the Bylaws, to
induce Indemnitee to serve, or continue to serve, as a director, officer, employee or agent of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director, officer, employee or agent of the
Company. 
  

	 	3.	 Indemnification. 

 (a)        Indemnification in Third Party Proceedings.  Subject to Section 10 below, the Company shall indemnify Indemnitee to the fullest
extent permitted by the Code, as the same may be amended from time to time (but, only to the extent that such amendment permits Indemnitee to broader indemnification rights than the Code permitted prior to adoption of such amendment), if Indemnitee
is a party to or threatened to be made a party to or otherwise involved in any proceeding, for any and all expenses, actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of such
proceeding. 
 (b)        Indemnification in Derivative Actions and
Direct Actions by the Company.  Subject to Section 10 below, the Company shall indemnify Indemnitee to the fullest extent permitted by the Code, as the same may be amended from time to time (but, only to the extent that such
amendment permits Indemnitee to broader indemnification rights than the Code permitted prior to adoption of such amendment), if Indemnitee is a party to or threatened to be made a party to or otherwise involved in any proceeding by or in the right
of the Company to procure a judgment in its favor, against any and all expenses actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement, or appeal of such proceedings. 

(c)        Indemnification of Related Parties.  If
(i) Indemnitee is or was affiliated with one or more entities that has invested in the Company (an “Appointing Shareholder”), (ii) the Appointing Shareholder is, or is threatened to be made, a party to or a participant in any
proceeding, and (iii) the Appointing Shareholder’s involvement in the proceeding is related to Indemnitee’s service to the Company as a director or other agent of the Company or any direct or indirect subsidiaries of the Company,
then, to the extent resulting from any claim based on the 

  
 3. 

 
Indemnitee’s service to the Company as a director or other fiduciary of the Company, the Appointing Shareholder will be entitled to indemnification hereunder for reasonable expenses to the
same extent as Indemnitee. 
 4.        Indemnification of Expenses
of Successful Party.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any proceeding or in defense of any claim, issue or matter therein,
including the dismissal of any action without prejudice, the Company shall indemnify Indemnitee against all expenses actually and reasonably incurred in connection with the investigation, defense or appeal of such proceeding. 

5.        Partial Indemnification.  If Indemnitee is entitled
under any provision of this Agreement to indemnification by the Company for some or a portion of any expenses actually and reasonably incurred by Indemnitee in the investigation, defense, settlement or appeal of a proceeding, but is precluded by
applicable law or the specific terms of this Agreement to indemnification for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. 

6.        Advancement of Expenses.  To the extent not prohibited
by law, the Company shall advance the expenses incurred by Indemnitee in connection with any proceeding, and such advancement shall be made within 20 days after the receipt by the Company of a statement or statements requesting such advances (which
shall include invoices received by Indemnitee in connection with such expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditures made that would cause Indemnitee to waive any
privilege accorded by applicable law shall not be included with the invoice) and upon request of the Company, an undertaking to repay the advancement of expenses if and to the extent that it is ultimately determined by a court of competent
jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. Advances shall be unsecured, interest free and without regard to Indemnitee’s ability to repay the expenses. Advances
shall include any and all expenses actually and reasonably incurred by Indemnitee pursuing an action to enforce Indemnitee’s right to indemnification under this Agreement, or otherwise and this right of advancement, including expenses incurred
preparing and forwarding statements to the Company to support the advances claimed. Indemnitee acknowledges that the execution and delivery of this Agreement shall constitute an undertaking providing that Indemnitee shall, to the fullest extent
required by law, repay the advance if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to
advances under this Section shall continue until final disposition of any proceeding, including any appeal therein. This Section 6 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 10(b).

  

	 	7.	 Notice and Other Indemnification Procedures. 

(a)        Notification of Proceeding.  Indemnitee will notify
the Company in writing promptly upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any proceeding or matter which may be subject to indemnification or advancement of expenses
covered hereunder. The failure of 

  
 4. 

 
Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise, except to the extent such failure is
prejudicial to the Company’s ability to defend Indemnitee in any proceeding. 

(b)        Request for Indemnification and Indemnification
Payments.  Indemnitee shall notify the Company promptly in writing upon receiving notice of any demand, judgment or other requirement for payment that Indemnitee reasonably believes to be subject to indemnification under the terms of
this Agreement, and shall request payment thereof by the Company. Indemnification payments requested by Indemnitee under Section 3 hereof shall be made by the Company no later than 60 days after receipt of the written request of Indemnitee.
Claims for advancement of expenses shall be made under the provisions of Section 6 herein. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement
or otherwise, except to the extent such failure is prejudicial to the Company’s ability to defend Indemnitee in any proceeding. 
 (c)        Application for Enforcement.  In the event the Company fails to make timely payments as set forth in Sections 6 or 7(b) above,
Indemnitee shall have the right to apply to any court of competent jurisdiction for the purpose of enforcing Indemnitee’s right to indemnification or advancement of expenses pursuant to this Agreement. In such an enforcement hearing or
proceeding, the burden of proof shall be on the Company to prove that indemnification or advancement of expenses to Indemnitee is not required under this Agreement or permitted by applicable law. Any determination by the Company (including its Board
of Directors, shareholders or independent counsel) that Indemnitee is not entitled to indemnification hereunder, shall not be a defense by the Company to the action nor create any presumption that Indemnitee is not entitled to indemnification or
advancement of expenses hereunder. 
 (d)        Indemnification of
Certain Expenses.  The Company shall indemnify Indemnitee against all expenses incurred in connection with any hearing or proceeding under this Section 7 unless the Company prevails in such hearing or proceeding on the merits in
all material respects. 
 8.        Assumption of
Defense.  In the event the Company shall be requested by Indemnitee to pay the expenses of any proceeding, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, or to participate to the extent
permissible in such proceeding, with counsel reasonably acceptable to Indemnitee. Upon assumption of the defense by the Company and the retention of such counsel by the Company, the Company shall not be liable to Indemnitee under this Agreement for
any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that Indemnitee shall have the right to employ separate counsel in such proceeding at Indemnitee’s sole cost and expense. Notwithstanding the
foregoing, if Indemnitee’s counsel delivers a written notice to the Company stating that such counsel has reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense or the
Company shall not, in fact, have employed counsel or otherwise actively pursued the defense of such proceeding within a reasonable time, then in any such event the fees and expenses of Indemnitee’s counsel to defend such proceeding shall be
subject to the indemnification and advancement of expenses provisions of this Agreement. 

  
 5. 

9.        Insurance.  To the extent that the Company maintains an
insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Company or of any subsidiary (“D&O Insurance”), Indemnitee shall be covered by such policy or policies in accordance
with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company
has D&O Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or
desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies. 

[Alternative: To the extent that the Company maintains an insurance policy or policies providing liability
insurance for directors, officers, employees, or agents of the Company or of any other Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any
such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give
prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.] 
  

	 	10.	 Exceptions. 

 (a)        Certain Matters.  Any provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this
Agreement to indemnify Indemnitee on account of any proceeding with respect to (i) remuneration paid to Indemnitee if it is determined by final judgment or other final adjudication that such remuneration was in violation of law (and, in this
respect, both the Company and Indemnitee have been advised that the Securities and Exchange Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable
and that claims for indemnification should be submitted to appropriate courts for adjudication, as indicated in Section 10(d) below); (ii) a final judgment rendered against Indemnitee for an accounting, disgorgement or repayment of profits
made from the purchase or sale by Indemnitee of securities of the Company against Indemnitee or in connection with a settlement by or on behalf of Indemnitee to the extent it is acknowledged by Indemnitee and the Company that such amount paid in
settlement resulted from Indemnitee’s conduct from which Indemnitee received monetary personal profit, pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended, or other provisions of any federal,
state or local statute or rules and regulations thereunder; (iii) a final judgment or other final adjudication that Indemnitee’s conduct was in bad faith, knowingly fraudulent or deliberately dishonest or constituted willful misconduct
(but only to the extent of such specific determination); or (iv) on account of conduct that is established by a final judgment as constituting a breach of Indemnitee’s duty of loyalty to the Company or resulting in any personal profit or
advantage to which Indemnitee is not legally entitled. For purposes of the foregoing sentence, a final judgment or other adjudication may be 

  
 6. 

 
reached in either the underlying proceeding or action in connection with which indemnification is sought or a separate proceeding or action to establish rights and liabilities under this
Agreement. 
 (b)        Claims Initiated by
Indemnitee.  Any provision herein to the contrary notwithstanding, the Company shall not be obligated to indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought by Indemnitee against the
Company or its directors, officers, employees or other agents and not by way of defense, except (i) with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or under any other agreement,
provision in the Bylaws or Amended and Restated Articles of Incorporation of the Company or applicable law, or (ii) with respect to any other proceeding initiated by Indemnitee that is either approved by the Board of Directors or
Indemnitee’s participation is required by applicable law. However, indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors determines it to be appropriate. 

(c)        Unauthorized Settlements.  Any provision herein to
the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee under this Agreement for any amounts paid in settlement of a proceeding effected without the Company’s written
consent. Neither the Company nor Indemnitee shall unreasonably withhold consent to any proposed settlement; provided, however, that the Company may in any event decline to consent to (or to otherwise admit or agree to any liability for
indemnification hereunder in respect of) any proposed settlement if the Company is also a party in such proceeding and determines in good faith that such settlement is not in the best interests of the Company and its shareholders. 

(d)        Securities Act Liabilities.  Any provision herein to
the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee or otherwise act in violation of any undertaking appearing in and required by the rules and regulations promulgated
under the Securities Act of 1933, as amended (the “Act”), or in any registration statement filed with the Securities and Exchange Commission under the Act. Indemnitee acknowledges that paragraph (h) of Item 512 of Regulation S-K
currently generally requires the Company to undertake in connection with any registration statement filed under the Act to submit the issue of the enforceability of Indemnitee’s rights under this Agreement in connection with any liability under
the Act on public policy grounds to a court of appropriate jurisdiction and to be governed by any final adjudication of such issue. Indemnitee specifically agrees that any such undertaking shall supersede the provisions of this Agreement and to be
bound by any such undertaking. 
 11.        Nonexclusivity and
Survival of Rights.  The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may at any time be entitled under any provision of
applicable law, the Amended and Restated Articles of Incorporation of the Company, Bylaws or other agreements, both as to action in Indemnitee’s official capacity and Indemnitee’s action as an agent of the Company, in any court in which a
proceeding is brought, and Indemnitee’s rights hereunder shall continue after Indemnitee has ceased acting as an agent of the Company and shall inure to the benefit of the heirs, executors, administrators and assigns of Indemnitee. The
obligations and 

  
 7. 

 
duties of the Company to Indemnitee under this Agreement shall be binding on the Company and its successors and assigns until terminated in accordance with its terms. The Company shall require
any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession had taken place. 
 No
amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her corporate status prior to
such amendment, alteration or repeal. To the extent that a change in the Code, whether by statute or judicial decision, permits greater indemnification or advancement of expenses than would be afforded currently under the Amended and Restated
Articles of Incorporation of the Company, Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is
intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion
or employment of any right or remedy hereunder, or otherwise, by Indemnitee shall not prevent the concurrent assertion or employment of any other right or remedy by Indemnitee. 

12.        Term.  This Agreement shall continue until and
terminate upon the later of: (a) five years after the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company; or (b) one year after the final termination of any proceeding, including any
appeal then pending, in respect to which Indemnitee was granted rights of indemnification or advancement of expenses hereunder. 
 No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against an Indemnitee or an Indemnitee’s estate, spouse, heirs, executors or personal or
legal representatives after the expiration of five years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal
action within such five-year period; provided, however, that if any shorter period of limitations is otherwise applicable to such cause of action, such shorter period shall govern. 

13.        Subrogation.  In the event of payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who, at the request and expense of the Company, shall execute all papers required and shall do everything that may be reasonably
necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 
 14.        Interpretation of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to
provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by law. 

15.        Severability.  If any provision of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of 

  
 8. 

 
the remaining provisions of the Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all
portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by
the provision held invalid, illegal or unenforceable and to give effect to Section 14 hereof. 

16.        Amendment and Waiver.  No supplement, modification,
amendment, or cancellation of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether
or not similar) nor shall such waiver constitute a continuing waiver. 

17.        Notice.  Except as otherwise provided herein, any notice or
demand which, by the provisions hereof, is required or which may be given to or served upon the parties hereto shall be in writing and, if by telegram, telecopy or telex, shall be deemed to have been validly served, given or delivered when sent, if
by overnight delivery, courier or personal delivery, shall be deemed to have been validly served, given or delivered upon actual delivery and, if mailed, shall be deemed to have been validly served, given or delivered three business days after
deposit in the United States mail, as registered or certified mail, with proper postage prepaid and addressed to the party or parties to be notified at the addresses set forth on the signature page of this Agreement (or such other address(es) as a
party may designate for itself by like notice). If to the Company, notices and demands shall be delivered to the attention of the Secretary of the Company. 
 18.        Governing Law.  This Agreement shall be governed exclusively by and construed according to the laws of the State of California, as applied to
contracts between California residents entered into and to be performed entirely within California. 

19.        Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be produced to evidence the existence of this Agreement.
Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other telecommunications mechanism will be effective as delivery of a manually executed counterpart of this Agreement. 

20.        Headings.  The headings of the sections of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof. 
 21.        Entire Agreement.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes
all prior agreements, understandings and negotiations, written and oral, between the parties with respect to the subject matter of this Agreement; provided, however, that this Agreement is a supplement to and in furtherance of the Amended and
Restated Articles of Incorporation of the Company, Bylaws, the 

  
 9. 

 
Code and any other applicable law, and shall not be deemed a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder. 

  
 10.

 IN WITNESS WHEREOF, the
parties hereto have entered into this Agreement effective as of the date first above written. 
  

			
	BIOCEPT, INC.
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 
	
	  
 INDEMNITEEEX-10.5

 Exhibit 10.5 

 

			
	 Mr. David F. Hale

17079 Circa Del Sur
 Rancho Santa Fe, California
92067
	  	March 10, 2011

 Re: Position as Executive Chairman of the Board of Directors of Biocept, Inc. 

Dear David: 
 It is my sincere
pleasure, on behalf of Biocept, Inc. (“Biocept”), to offer you the role of Executive Chairman of the Board of Directors of Biocept (the “Board”). Should you choose to accept this offer on the terms provided herein, your
appointment as Executive Chairman of the Board is contingent and effective upon your execution of this letter. The term of your appointment as the Executive Chairman shall be from the date of your execution of this letter through December 31,
2013 (the “Term”), unless earlier terminated due to your resignation or removal from the Board. 
 As Executive
Chairman, you will be expected to work closely with the Board and the executive team of Biocept to further the goals and objectives of the organization, consistent with the usual and customary duties of an executive chairman of the board of a
biotechnology company. The Board expects that in your role as Executive Chairman, you will initially maintain an office at Biocept’s San Diego, California headquarters, be involved in the day-to-day high level management decisions as guided by
the Board, serve as a facilitator of communications between the senior management team of Biocept and the non-employee directors, and spend an amount of time at Biocept commensurate with your duties and level of compensation set forth below. In
addition, you have agreed that, during your tenure as Executive Chairman of Biocept, you will promptly notify the Board if you accept employment as an executive officer of any other company or organization. The Board, in its sole discretion, will
determine whether any such employment is consistent with the duties undertaken pursuant to this letter. 
 As compensation for
your services as Executive Chairman, during your service as Executive Chairman and retroactive to January 1, 2011, you will be paid an Executive Chairman fee of (a) $25,000 per month for each month prior to the appointment by the Board of
a new Chief Executive Officer (“CEO”) and for each of the three months following the appointment of the new CEO, and (b) $12,500 per month for each month commencing with the fourth month following the appointment of the new CEO
(collectively, the “Chairman Fees”), which such fees shall be payable, less any required payroll deductions and withholdings, in regular periodic payments in accordance with Biocept policy. In the event that you are removed from the Board
without Cause (as defined in Biocept’s 2007 Equity Incentive Plan (the “Plan”)), you will continue to receive the applicable Chairman Fees for the remainder of the Term, subject to your furnishing to Biocept an effective waiver and
release of claims in a form specified by Biocept and consistent with standard practices. 
 As additional compensation,
contingent and effective upon the commencement of your services to Biocept, you will receive the following equity grants: 

  
 1. 

 (1) Biocept will grant to you an option (the “Option”) under the Plan to purchase
428,597 shares of Biocept’s common stock (the “Common Stock”) which shall vest in equal monthly installments over the four year period beginning on January 1, 2011. The Option will be early exercisable at your option and will
fully vest upon a Change in Control (as defined in the Plan) or an underwritten initial public offering of the Common Stock (“IPO”) occurring before the Option is fully vested and during your Continuous Service (as defined in the Plan). In
the event that your Continuous Service (as defined in the Plan) is involuntarily terminated by the Company or its shareholders without Cause (as defined in the Plan), the Option will fully vest, subject to your furnishing to Biocept an effective
waiver and release of claims in a form specified by Biocept and consistent with standard practices. You agree that you may, at your sole discretion, early exercise the Option in full within a reasonable time period following your execution of this
letter. The exercise price of the Option shall be the fair market value as of the date of grant, as determined by the Board. Additionally, if (i) Biocept issues and sells shares of its equity securities to investors in an equity financing (such
shares sold in such financing, the “Next Equity Securities”), (ii) you are providing Continuous Service (as defined in the Plan) immediately following the sale of the Next Equity Securities, and (iii) the number of shares subject
to the Option represent less than 1% of Biocept’s capitalization on a fully-diluted basis (assuming the exercise of all outstanding warrants and stock options and the unallocated pool of stock awards available for future issuance under the
Plan) following such sale of Next Equity Securities, then Biocept shall grant you an additional stock option such that the number of shares subject to such additional stock option will, when added to the number of shares subject to the Option,
result in stock option grants to you covering a number of shares equal to 1% of Biocept’s capitalization on a fully-diluted basis (assuming the exercise of all outstanding warrants and stock options and the unallocated pool of stock awards
available for future issuance under the Plan) following such sale of Next Equity Securities, which such additional stock options shall have (a) the same vesting terms as the Option, (b) the same vesting commencement date as the Option and
(c) an exercise price equal to the fair market value as of the date of grant, as determined by the Board (such right to receive an additional stock option grant, the “True-Up Right”). The foregoing True-Up Rights shall terminate upon
Biocept’s receipt of aggregate proceeds of $15,000,000 or more (the “Threshold”) from the sale of Next Equity Securities, excluding the conversion of any outstanding indebtedness. Notwithstanding the foregoing and for purposes of
clarity, the True-Up Rights shall apply with respect to the total amount of equity securities sold in the last sale of Next Equity Securities that results in the Threshold being exceeded; 

(2) Biocept will grant you a time-based restricted stock unit award (the “Time-Based RSU Award”) of up to 428,597 shares of
Biocept’s Series BB Preferred Stock (the “Series BB Preferred”). Under the Time-Based RSU Award, upon a Change in Control (as defined in the Plan) or IPO occurring during your Continuous Service (as defined in the Plan), all 428,597
shares of Series BB Preferred subject to the Time-Based RSU Award shall fully vest and be issued to you upon such event. In addition, if a Change in Control (as defined in the Plan) or IPO occurs within 10 years of January 1, 2011 but after the
involuntary termination of your Continuous Service (as defined in the Plan), a portion of the shares of Series BB Preferred subject to the Time-Based RSU Award will vest and be issued to you based upon the number of months you provided Continuous
Service (as defined in the Plan) divided by 48, such portion not to exceed the full 428,597 shares subject to the Time-Based RSU Award; provided, that in the event such involuntary termination of Continuous Service (as defined in the Plan) was
without 

  
 2. 

 
Cause (as defined in the Plan) and you furnished Biocept an effective waiver and release of claims in a form specified by Biocept and consistent with standard practices, the full 428,597 shares
subject to the Time-Based RSU Award will vest and be issued to you; and 
 (3) Biocept will grant you a
performance-based restricted stock unit award (the “Performance RSU Award”) for shares of Series BB Preferred. Under the Performance RSU Award, upon a Change in Control (as defined in the Plan) or IPO (a “Vesting Event”)
occurring within 10 years of January 1, 2011, a portion of shares of Series BB Preferred subject to the Performance RSU Award shall vest and be issued to you based upon achievement of the following Milestones (as defined below) prior to such
Vesting Event as set forth below; provided, that in the event your Continuous Service (as defined in the Plan) is involuntary terminated by the Company or its shareholders without Cause (as defined in the Plan) prior to the Vesting Event but before
all of the Milestones have been achieved, and you furnished Biocept an effective waiver and release of claims in a form specified by Biocept and consistent with standard practices, then (i) for each Milestone that has been achieved, a number of
shares of Series BB Preferred equal to that set forth below for the applicable Milestone shall vest and (ii) for each Milestone that has not been achieved, a number of shares of Series BB Preferred equal to 0.5% of Biocept’s capitalization
on a fully-diluted basis immediately prior to the Vesting Event (assuming the exercise of all outstanding warrants and stock options and the unallocated pool of stock awards available for future issuance under the Plan) shall vest upon such Vesting
Event. If, during your Continuous Service (as defined in the Plan) and prior to the Vesting Event, there has been commercial acceptance of Biocept’s OncoCEE-BRTM test, as determined by the Board in good faith (the “Commercial Milestone”), then a number of shares of
Series BB Preferred equal to 0.5% of Biocept’s capitalization on a fully-diluted basis immediately following achievement of the Commercial Milestone (assuming the exercise of all outstanding warrants and stock options and the unallocated pool
of stock awards available for future issuance under the Plan) shall vest upon such Vesting Event. If, during your Continuous Service (as defined in the Plan) and prior to the Vesting Event, Biocept has received an aggregate of at least $15,000,000
in new funds from: (a) the sale of Biocept’s securities to one or more outside investors who are not currently shareholders of Biocept; (b) third party collaborators or partners; and/or (c) grant, debt or other non-dilutive
funding from third parties (the “Funding Milestone”), then a number of shares of Series BB Preferred equal to 0.5% of Biocept’s capitalization on a fully-diluted basis immediately following achievement of the Funding Milestone
(assuming the exercise of all outstanding warrants and stock options and the unallocated pool of stock awards available for future issuance under the Plan) shall vest upon such Vesting Event. If, during your Continuous Service (as defined in the
Plan) and prior to the Vesting Event, all of the following objectives have been achieved, as determined by the Board in good faith (the “Leadership Milestone,” and collectively with the Commercial Milestone and the Funding Milestone, the
“Milestones”): 
  

	 	•	 	 Implementation of a change in the culture of Biocept from research to business; 

 

	 	•	 	 Hiring of a new CEO approved by the Board; 

  

	 	•	 	 Development of a two-year operating plan and a five-year strategic plan, each of which is approved by the Board; 

  
 3. 

	 	•	 	 Restructuring of the Board to support financing and long term growth; 

 

	 	•	 	 Completion and presentation to the Board of an assessment of Biocept’s senior management team and implementation of any changes that need to be
made following such assessment that are approved by the Board; 

  

	 	•	 	 Development and presentation to the Board of a plan for establishing the clinical value of circulating tumor cells (“CTCs”) in the treatment
of patients with cancer and implementation of the plan following approval by the Board; 

  

	 	•	 	 Development of an overall branding program for Biocept’s core business that is approved by the Board; 

 

	 	•	 	 Development of corporate objectives for 2011 that are approved by the Board; and 

 

	 	•	 	 Establishment of Biocept as the premiere partner of the Bio-Pharma industry in performing CTC tests for clinical trials; 

then a number of shares of Series BB Preferred equal to 0.5% of Biocept’s capitalization on a fully-diluted basis immediately following achievement
of the Leadership Milestone (assuming the exercise of all outstanding warrants and stock options and the unallocated pool of stock awards available for future issuance under the Plan) shall vest upon such Vesting Event. In addition, if a Vesting
Event occurs during your Continuous Service, but before all of the Milestones have been achieved, then (i) for each Milestone that has been achieved, a number of shares of Series BB Preferred equal to that set forth above for the applicable
Milestone shall vest and (ii) for each Milestone that has not been achieved, a number of shares of Series BB Preferred equal to 0.5% of Biocept’s capitalization on a fully-diluted basis immediately prior to the Vesting Event (assuming the
exercise of all outstanding warrants and stock options and the unallocated pool of stock awards available for future issuance under the Plan) shall vest upon such Vesting Event. 

Biocept will also reimburse you for reasonable out-of-pocket expenses incurred in connection with your service as a director in
accordance with Biocept’s established reimbursement policies. You will also receive indemnification under Biocept’s standard form of indemnity agreement for directors. 

This letter, along with the documentation reflecting the equity grants referred to herein, constitutes the entire agreement between you
and Biocept regarding the subject matter hereof. This agreement supersedes any other agreements or promises made to you by anyone, whether oral or written, and it may only be modified in a writing signed by a duly authorized officer of Biocept.

  
 4. 

 If the terms of this letter are acceptable to you, please sign and date this letter below
and return it to me in the enclosed return envelope, retaining a copy for your records. 
  

			
	Very truly yours,
	
	/s/ M. Faye Wilson
	M. Faye Wilson
	Lead Independent Director
	Biocept, Inc.

  

			
	Accepted and agreed:
	
	/s/ David F. Hale
	David F. Hale
	Date: March 10, 2011

  
 5.

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