Document:

Series A Stock Purchase Agreement

 Exhibit 10.15 
  
 Nanotechnica, Inc. 
  
 SERIES A PREFERRED STOCK PURCHASE AGREEMENT 
  
 September 10, 2004 
  

 Table of Contents 
  

							
	 	 	 	  	 	  	Page

	1.	 	Purchase and Sale of Preferred Stock	  	1
				
	 	 	1.1	  	 Sale and Issuance of Series A Preferred Stock
	  	1
				
	 	 	1.2	  	 Closing; Delivery
	  	1
				
	 	 	1.3	  	 Defined Terms Used in this Agreement
	  	1
			
	2.	 	Representations and Warranties of the Company	  	2
				
	 	 	2.1	  	 Organization, Good Standing and Qualification
	  	2
				
	 	 	2.2	  	 Subsidiaries
	  	2
				
	 	 	2.3	  	 Authorization
	  	2
				
	 	 	2.4	  	 Valid Issuance of Securities
	  	2
				
	 	 	2.5	  	 Governmental Consents and Filings
	  	3
				
	 	 	2.6	  	 Disclosure
	  	3
				
	 	 	2.7	  	 Confidential Information and Invention Assignment Agreements
	  	3
				
	 	 	2.8	  	 Capitalization
	  	3
				
	 	 	2.9	  	 Financial Liabilities
	  	3
				
	 	 	2.10	  	 No Claims
	  	3
			
	3.	 	Representations and Warranties of the Purchasers	  	3
				
	 	 	3.1	  	 Authorization
	  	3
				
	 	 	3.2	  	 Purchase Entirely for Own Account
	  	4
				
	 	 	3.3	  	 Disclosure of Information
	  	4
				
	 	 	3.4	  	 Restricted Securities
	  	4
				
	 	 	3.5	  	 No Public Market
	  	4
				
	 	 	3.6	  	 Legends
	  	4
				
	 	 	3.7	  	 Accredited Investor
	  	5
				
	 	 	3.8	  	 No General Solicitation
	  	5
			
	4.	 	Conditions of the Purchasers’ Obligations at Closing	  	5
				
	 	 	4.1	  	 Representations and Warranties
	  	5
				
	 	 	4.2	  	 Performance
	  	5
				
	 	 	4.3	  	 Board of Directors
	  	5
				
	 	 	4.4	  	 Agreement to Provide Additional Capital
	  	5
				
	 	 	4.5	  	 Board Observation Letter
	  	5
				
	 	 	4.6	  	 Voting Agreement; Right of First Refusal and Investor Rights Agreement
	  	5

  
 Nanotechnica Inc. 
 Series A Preferred Stock Purchase Agreement 
  

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	 	 	4.7	  	 Certificate
	  	5
				
	 	 	4.8	  	 Confidential Information and Invention Assignment Agreement
	  	5
				
	 	 	4.9	  	 Proceedings and Documents
	  	5
			
	5.	 	Conditions of the Company’s Obligations at Closing	  	6
				
	 	 	5.1	  	 Representations and Warranties
	  	6
				
	 	 	5.2	  	 Performance
	  	6
				
	 	 	5.3	  	 Qualifications
	  	6
			
	6.	 	Miscellaneous	  	6
				
	 	 	6.1	  	 Survival of Warranties
	  	6
				
	 	 	6.2	  	 Transfer; Successors and Assigns
	  	6
				
	 	 	6.3	  	 Governing Law
	  	6
				
	 	 	6.4	  	 Counterparts
	  	6
				
	 	 	6.5	  	 Titles and Subtitles
	  	6
				
	 	 	6.6	  	 Notices
	  	6
				
	 	 	6.7	  	 Finder’s Fee
	  	6
				
	 	 	6.8	  	 Attorney’s Fees
	  	7
				
	 	 	6.9	  	 Amendments and Waivers
	  	7
				
	 	 	6.10	  	 Severability
	  	7
				
	 	 	6.11	  	 Delays or Omissions
	  	7
				
	 	 	6.12	  	 Entire Agreement
	  	7
				
	 	 	6.13	  	 Corporate Securities Law
	  	7
				
	 	 	6.14	  	 Confidentiality
	  	7

  

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 Nanotechnia, Inc. 
  
 SERIES A PREFERRED STOCK PURCHASE AGREEMENT 
  
 This Series A Preferred Stock Purchase Agreement (the “Agreement”) is made as of September 10, 2004 by and
between Nanotechnica, Inc., a California corporation (the “Company”) and the investors listed on Exhibit A attached hereto (each a “Purchaser” and together the “Purchasers” ). 
  
 A. The parties have entered into that certain Agreement to Provide Additional
Capital dated September 10, 2003. 
  
 B. The parties desire to
enter into this Agreement regarding the sale and purchase of the Stock. 
  
 The parties hereby agree as follows: 
  
 1.
Purchase and Sale of Preferred Stock. 
  
 1.1 Sale and Issuance of Series A Preferred Stock. 
  
 (a) The Company shall adopt and file with the Secretary of State of the State of California on or before the Closing (as defined below)
the Certificate of Designation of Rights, Preferences, Privileges and Restriction of Series A Convertible Preferred Stock in the form attached hereto as Exhibit B (the “Certificate”). 
  
 (b) Subject to the terms and conditions of this Agreement
and the terms and conditions of the Agreement to Provide Additional Capital, Purchaser agrees to purchase at the Closing and the Company agrees to sell and issue to Purchaser at the Closing that number of shares of Series Preferred Stock set forth
opposite such Purchaser’s name on Exhibit A attached hereto at a purchase price of $4.00 per share. The shares of Series A Preferred Stock issued to the Purchaser pursuant to this Agreement shall be hereinafter referred to as the
“Stock.” 
  
 1.2 Closing;
Delivery. 
  
 (a) The purchase and sale
of the Stock shall take place at the Office of Technology Transfer of the California Institute of Technology, Pasadena, California, at 4 p.m., on September 10, 2004, or at such other time and place as the Company and the Purchasers mutually agree
upon, orally or in writing (which time and place are designated as the “Initial Closing”). In the event there is more than one closing, the term “Closing” shall apply to each such closing unless otherwise specified herein.

  
 (b) At each Closing, the Company shall
deliver to each Purchaser a certificate representing the Stock being purchased thereby against payment of the purchase price therefor by check payable to the Company or by wire transfer to a bank account designated by the Company. 
  
 1.3 Defined Terms Used in this Agreement. In
addition to the terms defined above, the following terms used in this Agreement shall be construed to have the meanings set forth or referenced below. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  

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 “Agreement to Provide Additional Capital” means the agreement between
the Company and the Purchasers, dated as of the date of the Initial Closing, in the form of Exhibit C attached hereto. 
  
 “Material Adverse Effect” means a material adverse effect on the business, assets (including intangible assets),
liabilities, financial condition, property or results of operation of the Company. 
  
 “Purchaser” means each of the Purchasers who are initially party to this Agreement. 
  
 “Securities Act” means the Securities Act
of 1933, as amended. 
  
 “Transaction
Agreements” means this Agreement, the Agreement to Provide Additional Capital and the Voting Agreement. 
  
 “Voting Agreement” means the agreement between the Company and the Purchasers, dated as of the date of the Initial
Closing, in the form of Exhibit D attached hereto. 
  
 2. Representations and Warranties of the Company. The Company hereby represents and warrants to each Purchaser that the following representations are true and complete as of the date of the Initial Closing, except as
otherwise indicated. 
  
 For purposes of these
representations and warranties, the phrase “to the Company’s knowledge” shall mean the actual knowledge of Michael L Roukes.  
  
 2.1 Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of California and has all requisite corporate power and authority to carry on its business as presently conducted or proposed to be conducted. 
  
 2.2 Subsidiaries. The Company does not currently own or control, directly or indirectly, any
interest in any other corporation, partnership, trust, joint venture, limited liability company, association or other business entity. The Company is not a participant in any joint venture, partnership or similar arrangement. 
  
 2.3 Authorization. All corporate action on the
part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement and the Transaction Agreements, the performance of all obligations of the Company hereunder and thereunder and
the authorization, issuance and delivery of the Stock and the Common Stock issuable upon conversion of the Stock (together, the “Securities”) has been taken or will be taken prior to the Closing, and the Transaction Agreements, when
executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies, or (iii) to the extent of any indemnification provisions contained in the Transaction Agreement may be limited by applicable federal or state securities laws. 
  
 2.4 Valid Issuance of Securities. The Stock,
when issued, sold and delivered in accordance with the terms hereof for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under
this Agreement, the Voting Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by a Purchaser. Based in part upon the representations of the Purchasers in Section 3 of this Agreement and subject to
the provisions of Section 2.5 below, the Stock will be issued in compliance with all applicable federal and state securities laws. The Common Stock issuable upon conversion of the Stock has been duly and validly reserved for issuance, and upon
issuance in accordance with the terms of the Certificate, will be duly and validly issued, fully paid and 

  

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nonassessable and free of restrictions on transfer other than restrictions on transfer under this Agreement, the Voting Agreement, applicable federal and
state securities laws and liens or encumbrances created by or imposed by a Purchaser. Based in part upon the representations of the Purchasers in Section 3 of this Agreement, and subject to Section 2, below, the Common Stock issuable upon conversion
of the Stock will be issued in compliance with all applicable federal and state securities laws. 
  
 2.5 Governmental Consents and Filings. Assuming the accuracy of the representations made by the Purchasers in Section 3 of
this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with
the consummation of the transactions contemplated by this Agreement, except for filings pursuant to Section 25102(f) of the California Corporate Securities Law of 1968, as amended, and the rules thereunder, other applicable state securities laws and
Regulation D of the Securities Act. 
  
 2.6
Disclosure. The Company and the Purchasers have engaged in a due diligence process, and in connection with that process the Company has made available to the Purchasers all the information reasonably available to the Company that the
Purchasers have requested for deciding whether to acquire the Stock and all information that the Company believes is reasonably necessary to enable the Purchasers to make such a decision. Assuming the accuracy of the Purchasers’ representations
regarding their sophistication with respect to investments in companies similar to the Company and in light of the due diligence process mentioned above, to the Company’s knowledge, no representation or warranty of the Company contained in this
Agreement and the exhibits attached hereto, any certificate furnished or to be furnished to Purchasers at the Closing contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements
contained herein or therein not misleading in light of the circumstances under which they were made. 
  
 2.7 Confidential Information and Invention Assignment Agreements. Each employee, consultant and officer of the Company has
executed an agreement with the Company regarding confidentiality and proprietary information substantially in the form or forms delivered to the counsel for the Purchasers. The Company is not aware that any of its employees or consultants is in
violation thereof, and the Company will use its best efforts to prevent any such violation. 
  
 2.8 Capitalization. The authorized capital of the Company consists, or will consist, immediately prior to the Closing of
50,000,000 shares of Common Stock and 20,000,000 shares of Preferred Stock. 
  
 2.9 Financial Liabilities. Purchasers incurred certain expenses on behalf of the Company. A schedule of these expenses is attached as Exhibit D. The Company agrees to reimburse Purchasers for
these expenses. 
  
 2.10 No Claims.
These are no claims or actions, and to the Company’s knowledge no claims or actions have been threatened, against the Company or any of its assets or properties. 
  
 3. Representations and Warranties of the Purchasers. Purchaser hereby represents and warrants to the
Company that: 
  
 3.1
Authorization. The Purchaser has full power and authority to enter into the Transaction Agreements. The Transaction Agreements, when executed and delivered by the Purchaser, will constitute valid and legally binding obligations of the
Purchaser, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’
rights generally, and as limited by laws relating to the availability of a specific performance, injunctive relief, or 

  

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other equitable remedies, or (b) to the extent the indemnification provisions contained in the Transaction Agreements may be limited by applicable federal or
state securities laws. 
  
 3.2 Purchase
Entirely for Own Account. This Agreement is made with the Purchaser in reliance upon the Purchaser’s representation to the Company, which by the Purchaser’s execution of this Agreement, the Purchaser hereby confirms, that the
Securities to be acquired by the Purchaser will be acquired for investment for the Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present
intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities. The Purchaser has not been formed for the specific purpose of acquiring the Securities. 
  
 3.3 Disclosure of Information. The Purchaser
has had an opportunity to discuss the Company’s business, management, financial affairs and the terms and conditions of the offering of the Stock with the Company’s management and has had an opportunity to review the Company’s
facilities. The Purchaser understands that such discussions and other written information delivered by the Company to the Purchaser, were intended to describe the aspects of the Company’s business which the Purchaser believes to be material.

  
 3.4 Restricted Securities. The
Purchaser understands that the Securities have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona
fide nature of the investment intent and the accuracy of the Purchaser’s representations as expressed herein. The Purchaser understands that the Securities are “restricted securities” under applicable U.S. federal and state securities
laws and that, pursuant to these laws, the Purchaser must hold the Securities indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and
qualification requirements is available. The Purchaser acknowledges that the Company has no obligation to register or qualify the Securities for resale. The Purchaser further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which are outside of the Purchaser’s
control, and which the Company is under no obligation and may not be able to satisfy. 
  
 3.5 No Public Market. The Purchaser understands that no public market now exists for any of the securities issued by the
Company, and that the Company has made no assurances that a public market will ever exist for the Securities. 
  
 3.6 Legends. The Purchaser understands that the Securities and any securities issued in respect of or exchange for the
Securities, may bear one or all of the following legends: 
  
 (a) “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT OF 1933.” 
  
 (b) Any legend set forth
in or required by the other Transaction Agreements. 
  

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 (c) Any legend required by the securities laws of any state to the extent such laws are
applicable to the shares represented by the certificate so legended. 
  
 3.7 Accredited Investor. The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. 
  
 3.8 No General Solicitation. Neither the
Purchaser, nor any of its officers, employees, agents, directors, stockholders or partners has engaged the services of a broker, investment banker or finder to contact any potential investor nor has the Purchaser or any of the Purchaser’s
officers, employees, agents, directors, stockholders or partners, agreed to pay any commission, fee or other remuneration to any third party to solicit or contact any potential investor. Neither the Purchaser, nor any of its officers, directors,
employees, agents, stockholders or partners has (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and sale of the Stock. 
  
 4. Conditions of the Purchasers’ Obligations at Closing. The obligations of each Purchaser to the
Company under this Agreement are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived: 
  
 4.1 Representations and Warranties. The representations and warranties of the Company contained in Section 2 shall be true
and correct in all material respects on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the date of the Initial Closing. 
  
 4.2 Performance. The Company shall have
performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing. 
  
 4.3 Board of Directors. As of the Initial
Closing, the Board shall be comprised of R. Bruce Stewart, Michael L. Roukes and Edward W. Frykman. 
  
 4.4 Agreement to Provide Additional Capital. The Company and Arrowhead Research Corporation shall have executed and
delivered the Agreement to Provide Additional Capital in substantially the form attached as Exhibit C. 
  
 4.5 Board Observation Letter. The Company shall execute and deliver a board observation letter for Dr. Yu-Chong Tai.

  
 4.6 Voting Agreement; Right of First
Refusal and Investor Rights Agreement. The Company (and the respective parties thereto) shall have executed and delivered the Voting Agreement and the Right of First Refusal and Investor Rights Agreement in substantially the form attached as
Exhibit E and Exhibit F, respectively. 
  
 4.7 Certificate. The Company shall have filed the Certificate with the Secretary of State of California on or prior to the Closing Date, which shall continue to be in full force and effect as of the Closing Date. 

 
 4.8 Confidential Information and Invention
Assignment Agreement. The Company and each of its employees shall have entered into the Company’s standard form Confidential Information and Invention Assignment Agreement, in substantially the form approved by the Board of Directors of
the Company. 
  
 4.9 Proceedings and
Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to Purchaser, and Purchaser (or its
counsel) shall have received all such counterpart original and certified or other copies of such documents as reasonably requested. Such documents may include good standing certificates. 
  

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 5. Conditions of the Company’s Obligations at Closing. The obligations of the
Company to each Purchaser under this Agreement are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived: 
  
 5.1 Representations and Warranties. The representations and warranties of each Purchaser
contained in Section 3 shall be true and correct in all material respects on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing. 
  
 5.2 Performance. All covenants, agreements and
conditions contained in this Agreement to be performed by the Purchasers on or prior to the Closing shall have been performed or complied with in all material respects. 
  
 5.3 Qualifications. All authorizations, approvals or permits, if any, of any governmental
authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Stock pursuant to this Agreement shall be obtained and effective as of the Closing. 
  
 6. Miscellaneous. 
  
 6.1 Survival of Warranties. Unless otherwise
set forth in this Agreement, the warranties, representations and covenants of the Company and the Purchasers contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing for a period of
one (1) year following the Initial Closing. 
  
 6.2 Transfer; Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this
Agreement. 
  
 6.3 Governing Law.
This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to
principles of conflicts of law. 
  
 6.4
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 
  
 6.5 Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 6.6 Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon
delivery, when delivered personally or by overnight courier or sent by fax (upon customary confirmation of receipt), or 48 hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, addressed to the party to
be notified at such party’s address as set forth on the signature page or Exhibit A hereto, or as subsequently modified by written notice, and if to the Company, with a copy to Heller Ehrman/Venture Law Group, 601 South Figueroa Street,
40th Floor, Los Angeles, California, Attn: Jon Atzen. 
  
 6.7 Finder’s Fee. Each party represents that it neither is nor will be obligated for any finder’s fee or commission in connection with this transaction. Each Purchaser agrees to indemnify and to hold harmless the
Company from any liability for any commission or compensation in the nature of a finder’s fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which each Purchaser or any
of its officers, employees, or representatives is responsible. The Company agrees to indemnify and hold harmless each Purchaser from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising out
of this 

  

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transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or
representatives is responsible. 
  
 6.8
Attorney’s Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any of the Transaction Agreements, the prevailing party shall be entitled to reasonable attorney’s
fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 6.9 Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of the Company
and the holders of at least a majority of the Common Stock issued or issuable upon conversion of the Stock. Any amendment or waiver effected in accordance with this Section 6.10 shall be binding upon the Purchasers and each transferee of the Stock
(or the Common Stock issuable upon conversion thereof), each future holder of all such securities, and the Company. 
  
 6.10 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the
parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance
of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms. 
  
 6.11 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing
to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 
  
 6.12 Entire Agreement. This Agreement, and the
documents referred to herein constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties
hereto are expressly canceled. 
  
 6.13
Corporate Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR
RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES
TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT. 
  
 6.14 Confidentiality. Each Purchaser hereto agrees that, except with the prior written permission of the Company, it shall
at all times hold in confidence and trust and not use or disclose any confidential information of the Company provided to or learned by such Purchaser in connection with the Purchaser’s rights under the Agreements. Notwithstanding the
foregoing, each Purchaser may disclose any confidential information of the Company provided to or learned by such Purchaser in connection with 

  

 -7 

 
such rights to the minimum extent necessary (i) to evaluate or monitor such Purchaser ‘s investment in the Company; (ii) as required by federal
Securities Laws, including the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, (iii) as required by any court or other governmental body, provided that such Purchaser provides the Company with prompt notice
of such court order or requirement to the Company to enable the Company to seek a protective order or otherwise to prevent or restrict such disclosure; (iv) to legal counsel of such Purchaser; (v) in connection with the enforcement of this Agreement
or rights under this Agreement; or (vi) to comply with applicable law. The provisions of this Section 6.14 shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by the parties hereto
with respect to the transactions contemplated hereby. Notwithstanding anything in this Agreement or in any other written or oral understanding or agreement to which the parties hereto are parties or by which they are bound, each party (and its
representatives, agents and employees) may consult any tax advisor regarding the tax treatment and tax structure of the transaction contemplated by this Agreement and may at any time disclose to any person, without limitation of any kind, the tax
treatment and tax structure of such transaction and all materials (including opinions or other tax analyses) that are provided relating to such treatment or structure. The preceding sentence is intended to satisfy the requirements for the
transaction contemplated herein to avoid classification as a “confidential transaction” in accordance with Treasury Regulations Section 1.6011-4(b)(3) and shall be interpreted consistent with such intent. 
  
 This authorization is not intended to permit disclosure of any other
information relating to the transaction contemplated by this Agreement, including (without limitation) (i) any portion of any materials to the extent not related to the tax treatment or tax structure of the transaction, (ii) the identities of
participants or potential participants in the transaction, (iii) the existence or status of any negotiations, (iv) any pricing or financial information (except to the extent such pricing or financial information is related to the tax treatment or
tax structure of the transaction), or (v) any other term or detail not relevant to the tax treatment or the tax structure of the transaction.] 
  
 [Signature Pages Follow] 
  

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 The parties have executed this Series A Preferred Stock Purchase Agreement as of the date first written
above. 
  

			
	COMPANY:
	
	 Nanotechnica, Inc.

		
	 By:
	 	/S/    MICHAEL L.
ROUKES        
	 Name:
	 	Michael L. Roukes
	 Title:
	 	Chief Technical Officer

  

			
	PURCHASERS:
	
	 Arrowhead Research Corporation

		
	 By:
	 	/S/    R. BRUCE
STEWART        
	 Name:
	 	R. Bruce Stewart
	 Title:
	 	President

  

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 EXHIBITS 
  

			
		
	Exhibit A -	 	Schedule of Purchasers
		
	Exhibit B -	 	Form of Certificate of Designation
		
	Exhibit C -	 	Form of Agreement to Provide Additional Capital
		
	Exhibit D -	 	Expenses
		
	Exhibit E -	 	Form of Voting Agreement
		
	Exhibit F -	 	Form of Right of First Refusal and Investor Rights Agreement

  

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 EXHIBIT A 
  

SCHEDULE OF PURCHASERS 
  

					
	 Purchaser

	 	 Amount

	 	 Number of Shares of Stock

	 Arrowhead Research
 Corporation
	 	 Up to $20,000,000 (subject to the terms and conditions of the Agreement to
 Provide Additional Capital)
	 	5,000,000

  

 -11Agreement to Provide Additional Capital

 Exhibit 10.16 
  
 AGREEMENT TO PROVIDE ADDITIONAL CAPITAL 
  
 THIS AGREEMENT TO PROVIDE ADDITIONAL CAPITAL (this “Agreement”) is made and entered into as of September 10 ,
2004, by and between ARROWHEAD RESEARCH CORPORATION, a Delaware corporation (“Arrowhead”), and NANOTECHNICA, INC., a California corporation (the “Company”). 
  
 A. Arrowhead has entered into that certain Stock Purchase Agreement dated September 10, 2004 (the “Stock Purchase
Agreement”) by and between the Company and Arrowhead regarding the sale and issuance to Arrowhead of 5,000,000 shares of the Company’s Series A Preferred Stock. 
  
 B. Pursuant to the Stock Purchase Agreement, Arrowhead has agreed to enter into this Agreement to provide, upon the term and
conditions of this Agreement, additional capital contributions to the Company. 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements set forth below, the parties hereto agree as follows: 
  
 1. Commitment to Provide Additional Capital. In addition to the Four Million Dollars ($4,000,000) provided to the
Company as of the date of this Agreement, Arrowhead agrees to provide up to Sixteen Million Dollars ($16,000,000) of additional capital to the Company, on the following terms and subject to the following conditions: 
  
 (a) Arrowhead shall provide to the Company the additional capital
contributions (each a “Capital Contribution”) on the dates and in the specific amounts set forth in Appendix I attached hereto and incorporated herein by this reference. Each Capital Contribution must be made in the full amount set
forth in Appendix I. 
  
 (b) Notwithstanding the foregoing,
in the event Arrowhead is unable to provide the Company with a particular Capital Contribution in the amount set forth in Appendix I, Arrowhead shall provide written notice to the Company no later than 10 days prior to the date of a
particular Capital Contribution (each a “Capital Contribution Date”) requesting an extension to make a particular Capital Contribution (the “Notice”). Assuming proper receipt of the Notice, the Company shall grant and Arrowhead
shall be entitled to a 30-day extension (or such other period as mutually agreed by the Arrowhead and the Company) from the particular Capital Contribution Date to make such Capital Contribution (“Extended Capital Contribution Period”).
Arrowhead shall be entitled to make a particular Capital Contribution anytime during the Extended Capital Contribution Period. The procedures set forth in this Section 1(b) are intended to apply to each Capital Contribution. A failure to provide any
Capital Contribution in accordance with this Agreement shall cause a forfeiture by Arrowhead of the right to make the current Capital Contribution and any future Capital Contributions scheduled pursuant to Appendix I and all of
Arrowhead’s rights and obligations shall terminate hereunder in accordance with Section 2, below. 

 (c) Any and all Capital Contributions provided by Arrowhead to the Company pursuant to this Agreement
shall be deemed contributions to the capital of the Company by Arrowhead, as an existing holder of capital stock of the Company. It is understood and agreed that no capital stock or other security of the Company shall be issued to Arrowhead in
consideration or on account of any Capital Contributions provided by Arrowhead to the Company pursuant to the provisions of this Agreement, and that none of such funds shall be considered a loan by Arrowhead to the Company, or otherwise be repayable
by the Company to Arrowhead. The liquidation preference to which Arrowhead is entitled as holder of the Company’s Series A Preferred Stock will be computed as provided for in the Certificate of Determination of Rights, Preferences, Privileges
and Restrictions of Series A Preferred Stock of the Company (the “Certificate of Determination”) and will be equal to the aggregate amount of any and all Capital Contributions provided by Arrowhead. The number of shares of Common Stock
into which each share of Series A Preferred Stock may be converted shall not be affected by any Capital Contributions. 
  
 2. Failure of Arrowhead to Make a Required Capital Contribution. Except as set forth in Section 3, below, in the event that Arrowhead fails to
provide any Capital Contribution in accordance with Appendix I and pursuant to Section 1, above (the date of such event is hereinafter referred to as the “Forfeiture Date”), then in addition to any other consequences of such failure
set forth in the Company’s Articles of Incorporation or the Certificate of Determination, the parties agree as follows as of the Forfeiture Date: 
  
 (a) Arrowhead shall immediately be deemed to forfeit (i) that specific number of shares of Series A Preferred Stock set forth in Appendix I which
are attributable to a particular Capital Contribution and (ii) any remaining shares of Series A Preferred Stock set forth in Appendix I attributed to any future Capital Contribution. Nothing in this Agreement shall be construed or interpreted
to require the forfeiture at any time of the 1,000,000 shares of Series A Preferred Stock for which Arrowhead has purchased pursuant to the Stock Purchase Agreement as is set forth in Appendix I. 
  
 (b) In accordance with the Company’s Articles of Incorporation and the
Certificate of Determination, Arrowhead shall no longer be entitled to appoint the majority of the number of the directors of the Company’s Board of Directors and each such individual member appointed by Arrowhead shall immediately resign from
the Company’s Board of Directors. 
  
 (c) Arrowhead shall,
within five (5) business days of the Forfeiture Date, present to the Company Stock Certificate No. PA-1 representing 5,000,000 shares of Series A Preferred Stock (the “Series A Stock Certificate”). The Company shall have five (5) business
days to exchange such certificate for and reissue a new stock certificate which shall represent the aggregate number of Series A Preferred Stock to which Arrowhead is entitled pursuant to this Agreement. In the event Arrowhead provides all Capital
Contributions set forth on Appendix I, Arrowhead shall retain the Series A Stock Certificate. 
  
 (d) Following the issuance of the new stock certificate to Arrowhead pursuant to this Agreement, the parties agree that this Agreement shall terminate and
have no further force or effect. 
  

 2 

 (e) Any and all (i) options to purchase Common Stock of the Company then outstanding under the
Company’s stock option plan or (ii) shares of Common Stock purchased or issued pursuant to restricted stock purchase agreements that otherwise would not be exercisable or purchasable, as the case may be, pursuant to the provisions of applicable
stock option agreements or restricted stock purchase agreements would immediately and automatically accelerate with respect to any vesting imposed upon such options or shares and become immediately exercisable to purchase or purchasable, as the case
may be, notwithstanding any provision to the contrary contained in the stock option agreements or restricted stock purchase agreements, but on all of the other terms and conditions contained in the applicable stock option agreements or restricted
stock purchase agreements, all or any portion of the shares of Common Stock issuable upon exercise or purchase thereof. 
  
 3. Protective Provisions; Voting Agreement. Notwithstanding any provision in this Agreement to the contrary, the parties to this Agreement hereby
agree as follows: 
  
 (a) In the event Arrowhead provides the
Second Capital Contribution (as that term is defined in Appendix I attached hereto), the Company shall amend, within 30 days of the date of the Second Capital Contribution, the Certificate of Determination to include the protective provisions
set forth in Exhibit A attached hereto. This amendment may take the form of an amendment to the Certificate of Determination of Series A Preferred Stock or an amendment and restatement of the Articles of Incorporation. The parties hereto
agree to take all reasonable actions required to effectuate the amendment set forth in this Section 3(a) and Exhibit A. 
  
 (b) In the event Arrowhead fails to provide any Capital Contributions other than the Initial Capital Contribution (as that term is defined in Appendix I
attached hereto), the Company shall, simultaneously with the termination of this Agreement, amend the Voting Agreement with Arrowhead and all other shareholders of Arrowhead to provide for the election of one (1) director of the Board of Directors
of the Company designated by Arrowhead so long as Arrowhead holds 500,000 shares of Series A Preferred Stock of the Company. The parties hereto agree to take all reasonable actions required to amend the Voting Agreement contemplated by this Section
3(b). 
  
 4. Termination. Unless otherwise terminated by
the parties, this Agreement shall terminate and have no further force or effect following the earlier to occur of (i) the date of the Third Capital Contribution set forth in Appendix I or (ii) five (5) business days following any Forfeiture
Date. 
  
 5. Miscellaneous. 
  
 (a) Subject to the terms and conditions of this Agreement, each of the
parties hereto shall use its best efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things necessary, proper or advisable under applicable laws, rules and regulations to consummate and make effective the
transactions contemplated by this Agreement. . 
  

 3 

 (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto, the heirs,
personal representatives, successors and permitted assigns of each of the parties hereto, but shall not confer, expressly or by implication, any rights or remedies upon any other party. Neither this Agreement nor any of the rights, interests or
obligations of either party hereunder may be assigned without the prior written consent of the other party. 
  
 (c) This Agreement is made and shall be governed in all respects, including validity, interpretation and effect, by the laws of the State of California.

  
 (d) All notices, requests or demands and other communications
hereunder must be in writing and shall be deemed to have been duly made if personally delivered or mailed, postage prepaid, to the parties at their respective addresses set forth on the signature page hereof. Any party hereto may change its address
by written notice to the other party given in accordance with this subsection 5(d). 
  
 (e) This Agreement, together with the exhibits attached hereto, contains the entire agreement between the parties and supersedes all prior agreements, understandings and writings between the parties with respect to
the subject matter hereof and thereof. Each party hereto acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any party, or anyone acting with authority on behalf of any party, which are not
embodied herein or in an exhibit hereto, and that no other agreement, statement or promise may be relied upon or shall be valid or binding. Neither this Agreement nor any term hereof may be changed, waived, discharged or terminated orally. This
Agreement may be modified or amended or any term hereof may be changed, waived, discharged or terminated only by an agreement in writing signed by each of the parties hereto; provided, however, that only the independent board member(s) of the
Company not affiliated with Arrowhead shall be entitled to vote with respect to any such amendment, change, waiver, discharge or termination affecting the Company. 
  
 (f) The captions and headings used herein are for convenience only and shall not be construed as a part of this Agreement.

  
 (g) This Agreement may be executed in counterparts, each of
which shall be deemed an original but all of which taken together shall constitute but one and the same document. 
  
 (h) The provisions of this Agreement are severable. In the event that any one or more of the provisions contained in this Agreement, or the application
thereof in any circumstances is held invalid, illegal, or unenforceable in any respect for any reason, the validity and enforceability of any such provision in every other respect and of the remaining provisions of this Agreement shall not be in any
way impaired or affected, it being intended that all of the rights and privileges contained in this Agreement shall be enforceable to the fullest extent permitted by law. 
  
 [SIGNATURES CONTAINED ON THE FOLLOWING PAGE] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the day and year first above
written. 
  

			
	The Company:
	
	NANOTECHNICA, INC.
		
	By:	 	 MICHAEL L. ROUKES

	 	 	Michael L. Roukes
	Title:	 	Vice President and Chief Technical Officer

  

			
	Arrowhead:
	
	ARROWHEAD RESEARCH CORPORATION
		
	By:	 	 R. BRUCE STEWART

	 	 	R. Bruce Stewart
	Title:	 	President

  

 5 

 Appendix I 
  

To 
  
 Agreement to Provide Additional Capital 
  

					
	 Amount of Capital
 Contribution

	  	Capital Contribution Date

	  	Number of Series A
Preferred Stock Subject to
Forfeiture on the
Forfeiture Date

	 $4,000,000 (the “Initial Capital Contribution”)
	  	September 10, 2004	  	-0-
	 $9,000,000 (the “Second Capital Contribution”)
	  	January 1, 2005	  	2,250,000
	 $7,000,000 (the “Third Capital Contribution”)
	  	March 31, 2005	  	1,750,000

  

 6 

 Exhibit A 
  

Protective Provisions 
  
 Protective Provisions. So long as Arrowhead owns 10% of the shares of Series A Preferred Stock initially acquired by Arrowhead, the
Corporation shall not without first obtaining the approval (by vote or written consent, as provided by law) of the holders of at least a majority of the Series A Preferred Stock, voting together as a single class: 
  
 (a) effect a Liquidation Transaction; 
  
 (b) alter or change the rights, preferences or privileges of the shares of
Series A Preferred Stock; 
  
 (c) increase or decrease (other
than by redemption, conversion or otherwise in accordance with these Restated Articles) the total number of authorized shares of Series A Preferred Stock or Common Stock; 
  
 (d) authorize or issue, or obligate itself to issue, any other equity security, including any security (other than Series A
Preferred Stock) convertible into or exercisable for any equity security, having a preference over, or being on a parity with, the Series A Preferred Stock with respect to any rights, preferences or privileges; 
  
 (e) redeem, purchase or otherwise acquire (or pay into or set funds aside
for a sinking fund for such purpose) any share or shares of Preferred Stock or Common Stock other than in accordance with the redemption provisions of this Restated Certificate; provided, however, that this restriction shall not apply
to the repurchase of shares of Common Stock from employees, officers, directors, consultants or other persons performing services for the Corporation or any subsidiary pursuant to agreements under which the Corporation has the option to repurchase
such shares at cost upon the occurrence of certain events, such as the termination of employment, or through the exercise of any right of first refusal, and which repurchase is unanimously approved by the Board of Directors); 
  
 (f) amend or waive any provision of the Certificate of Determination or the
Bylaws; 
  
 (g) increase or decrease the authorized number of
directors on the Board of Directors; 
  
 (h) take any action
which results in borrowing in excess of $750,000, unless such borrowing is unanimously approved by the Board of Directors; 
  
 (i) increase the number of shares of Common Stock reserved for issuance under the Corporation’s stock or option plans; or 
  
 (j) declare or pay any dividend on any shares of the Corporation’s
Common Stock or Preferred Stock, except in accordance with Section 1. 
  

 7

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