Document:

exv10w5

 

Exhibit 10.5

Hansen Medical, Inc.

2006 Employee Stock Purchase Plan

Adopted
by the Board of Directors: August 4, 2006

Amended by the Board of Directors: September 21, 2006

Approved by the
Stockholders: October 30, 2006

1. General.

     (a) The purpose of the Plan is to provide a means by which Employees of the Company and
certain designated Related Corporations may be given an opportunity to purchase shares of the
Common Stock of the Company.

     (b) The Company, by means of the Plan, seeks to retain the services of such Employees, to
secure and retain the services of new Employees and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its Related Corporations.

     (c) The Company intends that the Purchase Rights be considered options issued under an
Employee Stock Purchase Plan.

2. Administration.

     (a) The Board shall administer the Plan unless and until the Board delegates administration of
the Plan to a Committee, as provided in Section 2(c).

     (b) The Board shall have the power, subject to, and within the limitations of, the express
provisions of the Plan:

          (i) To determine when and how Purchase Rights to purchase shares of Common Stock shall be
granted and the provisions of each Offering of such Purchase Rights (which need not be identical).

          (ii) To designate from time to time which Related Corporations of the Company shall be
eligible to participate in the Plan.

          (iii) To construe and interpret the Plan and Purchase Rights, and to establish, amend and
revoke rules and regulations for its administration. The Board, in the exercise of this power, may
correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it shall
deem necessary or expedient to make the Plan fully effective.

          (iv) To adopt such procedures and sub-plans as are necessary or appropriate to permit
participation in the Plan by Employees who are foreign nationals or employed outside the United
States.

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          (v) To amend the Plan as provided in Section 13.

          (vi) Generally, to exercise such powers and to perform such acts as it deems necessary or
expedient to promote the best interests of the Company and its Related Corporations and to carry
out the intent that the Plan be treated as an Employee Stock Purchase Plan.

     (c) The Board may delegate some or all of the administration of the Plan to a Committee or
Committees. If administration is delegated to a Committee, the Committee shall have, in connection
with the administration of the Plan, the powers theretofore possessed by the Board that have been
delegated to the Committee, including the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and references in this Plan to the
Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions,
not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.
The Board may retain the authority to concurrently administer the Plan with the Committee and may,
at any time, revest in the Board some or all of the powers previously delegated.

     (d) All determinations, interpretations and constructions made by the Board in good faith
shall not be subject to review by any person and shall be final, binding and conclusive on all
persons.

3. Shares of Common Stock Subject to the Plan.

     (a) Subject to the provisions of Section 12(a) relating to Capitalization Adjustments, the
shares of Common Stock that may be sold pursuant to Purchase Rights shall not exceed in the
aggregate six hundred twenty-five thousand (625,000) shares of Common Stock, plus an annual
increase to be added on January 1st each year for a period of ten (10) years, commencing
on January 1, 2007 and ending on (and including) January 1,
2016, in an amount equal to the lesser of (i) two percent (2%) of the total number of shares of Common Stock outstanding on December 31st
of the preceding calendar year (rounded down to the nearest whole
share), or (ii) seven hundred fifty thousand (750,000) Shares of
Common Stock. Notwithstanding the foregoing, the Board may act,
prior to the first day of any calendar year, to increase the share reserve by such number of shares
of Common Stock as the Board shall determine, which number shall be
less than each of (i) and (ii).

     (b) If any Purchase Right granted under the Plan shall for any reason terminate without having
been exercised, the shares of Common Stock not purchased under such Purchase Right shall again
become available for issuance under the Plan.

     (c) The stock purchasable under the Plan shall be shares of authorized but unissued or
reacquired Common Stock, including shares repurchased by the Company on the open market.

4. Grant of Purchase Rights; Offering.

     (a) The Board may from time to time grant or provide for the grant of Purchase Rights to
purchase shares of Common Stock under the Plan to Eligible Employees in an Offering (consisting of
one or more Purchase Periods) on an Offering Date or Offering Dates selected by the Board. Each
Offering shall be in such form and shall contain such terms and conditions as

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the Board shall deem appropriate, which shall comply with the requirement of Section 423(b)(5)
of the Code that all Employees granted Purchase Rights shall have the same rights and privileges.
The terms and conditions of an Offering shall be incorporated by reference into the Plan and
treated as part of the Plan. The provisions of separate Offerings need not be identical, but each
Offering shall include (through incorporation of the provisions of this Plan by reference in the
document comprising the Offering or otherwise) the period during which the Offering shall be
effective, which period shall not exceed twenty-seven (27) months beginning with the Offering Date,
and the substance of the provisions contained in Sections 5 through 8, inclusive.

     (b) If a Participant has more than one Purchase Right outstanding under the Plan, unless he or
she otherwise indicates in agreements or notices delivered hereunder: (i) each agreement or notice
delivered by that Participant shall be deemed to apply to all of his or her Purchase Rights under
the Plan, and (ii) a Purchase Right with a lower exercise price (or an earlier-granted Purchase
Right, if different Purchase Rights have identical exercise prices) shall be exercised to the
fullest possible extent before a Purchase Right with a higher exercise price (or a later-granted
Purchase Right if different Purchase Rights have identical exercise prices) shall be exercised.

     (c) The Board shall have the discretion to structure an Offering so that if the Fair Market
Value of the shares of Common Stock on the first day of a new Purchase Period within that Offering
is less than or equal to the Fair Market Value of the shares of Common Stock on the Offering Date,
then (i) that Offering shall terminate immediately, and (ii) the Participants in such terminated
Offering shall be automatically enrolled in a new Offering beginning on the first day of such new
Purchase Period.

5. Eligibility.

     (a) Purchase Rights may be granted only to Employees of the Company or, as the Board may
designate as provided in Section 2(b), to Employees of a Related Corporation. Except as provided
in Section 5(b), an Employee shall not be eligible to be granted Purchase Rights under the Plan
unless, on the Offering Date, such Employee has been in the employ of the Company or the Related
Corporation, as the case may be, for such continuous period preceding such Offering Date as the
Board may require, but in no event shall the required period of continuous employment be greater
than two (2) years. In addition, the Board may provide that no Employee shall be eligible to be
granted Purchase Rights under the Plan unless, on the Offering Date, such Employee’s customary
employment with the Company or the Related Corporation is more than twenty (20) hours per week and
more than five (5) months per calendar year or such other criteria as the Board may determine
consistent with Section 423 of the Code.

     (b) The Board may provide that each person who, during the course of an Offering, first
becomes an Eligible Employee shall, on a date or dates specified in the Offering which coincides
with the day on which such person becomes an Eligible Employee or which occurs thereafter, receive
a Purchase Right under that Offering, which Purchase Right shall thereafter be deemed to be a part
of that Offering. Such Purchase Right shall have the same characteristics as any Purchase Rights
originally granted under that Offering, as described herein, except that:

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          (i) the date on which such Purchase Right is granted shall be the “Offering Date” of such
Purchase Right for all purposes, including determination of the exercise price of such Purchase
Right;

          (ii) the period of the Offering with respect to such Purchase Right shall begin on its
Offering Date and end coincident with the end of such Offering; and

          (iii) the Board may provide that if such person first becomes an Eligible Employee within a
specified period of time before the end of the Offering, he or she shall not receive any Purchase
Right under that Offering.

     (c) No Employee shall be eligible for the grant of any Purchase Rights under the Plan if,
immediately after any such Purchase Rights are granted, such Employee owns stock possessing five
percent (5%) or more of the total combined voting power or value of all classes of stock of the
Company or of any Related Corporation. For purposes of this Section 5(c), the rules of Section
424(d) of the Code shall apply in determining the stock ownership of any Employee, and stock which
such Employee may purchase under all outstanding Purchase Rights and options shall be treated as
stock owned by such Employee.

     (d) As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted
Purchase Rights under the Plan only if such Purchase Rights, together with any other rights granted
under all Employee Stock Purchase Plans of the Company and any Related Corporations, do not permit
such Eligible Employee’s rights to purchase stock of the Company or any Related Corporation to
accrue at a rate which exceeds twenty five thousand dollars ($25,000) of Fair Market Value of such
stock (determined at the time such rights are granted, and which, with respect to the Plan, shall
be determined as of their respective Offering Dates) for each calendar year in which such rights
are outstanding at any time.

     (e) Officers of the Company and any designated Related Corporation, if they are otherwise
Eligible Employees, shall be eligible to participate in Offerings under the Plan. Notwithstanding
the foregoing, the Board may provide in an Offering that Employees who are highly compensated
Employees within the meaning of Section 423(b)(4)(D) of the Code shall not be eligible to
participate.

6. Purchase Rights; Purchase Price.

     (a) On each Offering Date, each Eligible Employee, pursuant to an Offering made under the
Plan, shall be granted a Purchase Right to purchase up to that number of shares of Common Stock
purchasable either with a percentage or with a maximum dollar amount, as designated by the Board,
but in either case not exceeding fifteen percent (15%) of such Employee’s earnings (as defined by
the Board in each Offering) during the period that begins on the Offering Date (or such later date
as the Board determines for a particular Offering) and ends on the date stated in the Offering,
which date shall be no later than the end of the Offering.

     (b) The Board shall establish one (1) or more Purchase Dates during an Offering as of which
Purchase Rights granted pursuant to that Offering shall be exercised and purchases of shares of
Common Stock shall be carried out in accordance with such Offering.

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     (c) In connection with each Offering made under the Plan, the Board may specify a maximum
number of shares of Common Stock that may be purchased by any Participant on any Purchase Date
during such Offering. In connection with each Offering made under the Plan, the Board may specify
a maximum aggregate number of shares of Common Stock that may be purchased by all Participants
pursuant to such Offering. In addition, in connection with each Offering that contains more than
one Purchase Date, the Board may specify a maximum aggregate number of shares of Common Stock that
may be purchased by all Participants on any Purchase Date under the Offering. If the aggregate
purchase of shares of Common Stock issuable upon exercise of Purchase Rights granted under the
Offering would exceed any such maximum aggregate number, then, in the absence of any Board action
otherwise, a pro rata allocation of the shares of Common Stock available shall be made in as nearly
a uniform manner as shall be practicable and equitable.

     (d) The purchase price of shares of Common Stock acquired pursuant to Purchase Rights shall be
not less than the lesser of:

          (i) an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares of
Common Stock on the Offering Date; or

          (ii) an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares of
Common Stock on the applicable Purchase Date.

7. Participation; Withdrawal; Termination.

     (a) A Participant may elect to authorize payroll deductions pursuant to an Offering under the
Plan by completing and delivering to the Company, within the time specified in the Offering, an
enrollment form (in such form as the Company may provide). Each such enrollment form shall
authorize an amount of Contributions expressed as a percentage of the submitting Participant’s
earnings (as defined in each Offering) during the Offering (not to exceed the maximum percentage
specified by the Board). Each Participant’s Contributions shall be credited to a bookkeeping
account for such Participant under the Plan and shall be deposited with the general funds of the
Company except where applicable law requires that Contributions be deposited with a third party.
To the extent provided in the Offering, a Participant may begin such Contributions after the
beginning of the Offering. To the extent provided in the Offering, a Participant may thereafter
reduce (including to zero) or increase his or her Contributions. To the extent specifically
provided in the Offering, in addition to making Contributions by payroll deductions, a Participant
may make Contributions through the payment by cash or check prior to each Purchase Date of the
Offering.

     (b) During an Offering, a Participant may cease making Contributions and withdraw from the
Offering by delivering to the Company a notice of withdrawal in such form as the Company may
provide. Such withdrawal may be elected at any time prior to the end of the Offering, except as
provided otherwise in the Offering. Upon such withdrawal from the Offering by a Participant, the
Company shall distribute to such Participant all of his or her accumulated Contributions (reduced
to the extent, if any, such Contributions have been used to acquire shares of Common Stock for the
Participant) under the Offering, and such Participant’s Purchase Right in that Offering shall
thereupon terminate. A Participant’s withdrawal from an Offering shall

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have no effect upon such Participant’s eligibility to participate in any other Offerings under
the Plan, but such Participant shall be required to deliver a new enrollment form in order to
participate in subsequent Offerings.

     (c) Purchase Rights granted pursuant to any Offering under the Plan shall terminate
immediately upon a Participant ceasing to be an Employee for any reason or for no reason (subject
to any post-employment participation period required by law) or other lack of eligibility. The
Company shall distribute to such terminated or otherwise ineligible Employee all of his or her
accumulated Contributions (reduced to the extent, if any, such Contributions have been used to
acquire shares of Common Stock for the terminated or otherwise ineligible Employee) under the
Offering.

     (d) Purchase Rights shall not be transferable by a Participant except by will, the laws of
descent and distribution, or by a beneficiary designation as provided in Section 10. During a
Participant’s lifetime, Purchase Rights shall be exercisable only by such Participant.

     (e) Unless otherwise specified in an Offering, the Company shall have no obligation to pay
interest on Contributions.

8. Exercise of Purchase Rights.

     (a) On each Purchase Date during an Offering, each Participant’s accumulated Contributions
shall be applied to the purchase of shares of Common Stock up to the maximum number of shares of
Common Stock permitted pursuant to the terms of the Plan and the applicable Offering, at the
purchase price specified in the Offering. No fractional shares shall be issued upon the exercise
of Purchase Rights unless specifically provided for in the Offering.

     (b) If any amount of accumulated Contributions remains in a Participant’s account after the
purchase of shares of Common Stock and such remaining amount is less than the amount required to
purchase one share of Common Stock on the final Purchase Date of an Offering, then such remaining
amount shall be held in such Participant’s account for the purchase of shares of Common Stock under
the next Offering under the Plan, unless such Participant withdraws from such next Offering, as
provided in Section 7(b), or is not eligible to participate in such Offering, as provided in
Section 5, in which case such amount shall be distributed to such Participant after the final
Purchase Date, without interest. If the amount of Contributions remaining in a Participant’s
account after the purchase of shares of Common Stock is at least equal to the amount required to
purchase one (1) whole share of Common Stock on the final Purchase Date of the Offering, then such
remaining amount shall be distributed in full to such Participant at the end of the Offering,
without interest.

     (c) No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be
issued upon such exercise under the Plan are covered by an effective registration statement
pursuant to the Securities Act and the Plan is in material compliance with all applicable federal,
state, foreign and other securities and other laws applicable to the Plan. If, on a Purchase Date
during any Offering hereunder, the shares of Common Stock are not so registered or the Plan is not
in such compliance, no Purchase Rights of any Offering shall be exercised on such Purchase Date,
and the Purchase Date shall be delayed until the shares of

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Common Stock are subject to such an effective registration statement and the Plan is in such
compliance, except that the Purchase Date shall not be delayed more than twelve (12) months and the
Purchase Date shall in no event be more than twenty-seven (27) months from the Offering Date. If,
on the Purchase Date under any Offering hereunder, as delayed to the maximum extent permissible,
the shares of Common Stock are not registered and the Plan is not in such compliance, no Purchase
Rights of any Offering shall be exercised and all Contributions accumulated during the Offering
(reduced to the extent, if any, such Contributions have been used to acquire shares of Common
Stock) shall be distributed to the Participants, without interest.

9. Covenants of the Company.

     The Company shall seek to obtain from each federal, state, foreign or other regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to issue
and sell shares of Common Stock upon exercise of the Purchase Rights. If, after commercially
reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency
the authority that counsel for the Company deems necessary for the lawful issuance and sale of
Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue
and sell Common Stock upon exercise of such Purchase Rights unless and until such authority is
obtained.

10. Designation of Beneficiary.

     (a) A Participant may file a written designation of a beneficiary who is to receive any shares
of Common Stock and/or cash, if any, from the Participant’s account under the Plan in the event of
such Participant’s death subsequent to the end of an Offering but prior to delivery to the
Participant of such shares of Common Stock or cash. In addition, a Participant may file a written
designation of a beneficiary who is to receive any cash from the Participant’s account under the
Plan in the event of such Participant’s death during an Offering. Any such designation shall be on
a form provided by or otherwise acceptable to the Company.

     (b) The Participant may change such designation of beneficiary at any time by written notice
to the Company. In the event of the death of a Participant and in the absence of a beneficiary
validly designated under the Plan who is living at the time of such Participant’s death, the
Company shall deliver such shares of Common Stock and/or cash to the executor or administrator of
the estate of the Participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its sole discretion, may deliver such shares of Common
Stock and/or cash to the spouse or to any one or more dependents or relatives of the Participant,
or if no spouse, dependent or relative is known to the Company, then to such other person as the
Company may designate.

11. Miscellaneous Provisions.

     (a) The Plan and Offering do not constitute an employment contract. Nothing in the Plan or in
the Offering shall in any way alter the at will nature of a Participant’s employment or be deemed
to create in any way whatsoever any obligation on the part of any Participant to

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continue in the employ of the Company or a Related Corporation, or on the part of the Company
or a Related Corporation to continue the employment of a Participant.

     (b) The provisions of the Plan shall be governed by the laws of the State of Delaware without
resort to that state’s conflicts of laws rules.

     (c) Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights shall
constitute general funds of the Company.

     (d) A Participant shall not be deemed to be the holder of, or to have any of the rights of a
holder with respect to, shares of Common Stock subject to Purchase Rights unless and until the
Participant’s shares of Common Stock acquired upon exercise of Purchase Rights are recorded in the
books of the Company (or its transfer agent).

12. Adjustments upon Changes in Common Stock; Corporate Transactions.

     (a) In the event of a Capitalization Adjustment, the Board shall equitably adjust: (i) the
class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a); (ii) the
class(es) and maximum number of securities by which the share reserve is to increase automatically
each year pursuant to Section 3(a); (iii) the class(es) and number of securities subject to
outstanding Purchase Rights; and (iv) the class(es) and number of securities imposed by purchase
limits under each ongoing Offering. The Board shall make such adjustments, and its determination
shall be final, binding and conclusive.

     (b) In the event of a Corporate Transaction, then: (i) any surviving corporation or acquiring
corporation (or the surviving or acquiring corporation’s parent company) may assume or continue
Purchase Rights outstanding under the Plan or may substitute similar rights (including a right to
acquire the same consideration paid to the stockholders in the Corporate Transaction) for those
outstanding under the Plan, or (ii) if any surviving or acquiring corporation (or its parent
company) does not assume or continue such Purchase Rights or does not substitute similar rights for
Purchase Rights outstanding under the Plan, then the Participants’ accumulated Contributions shall
be used to purchase shares of Common Stock within ten (10) business days prior to the Corporate
Transaction under any ongoing Offerings, and the Participants’ Purchase Rights under the ongoing
Offerings shall terminate immediately after such purchase.

13. Amendment of the Plan.

     (a) The Board at any time, and from time to time, may amend the Plan. However, except as
provided in Section 12(a) relating to Capitalization Adjustments and except as to amendments solely
to benefit the administration of the Plan, to take account of a change in legislation or to obtain
or maintain favorable tax, exchange control or regulatory treatment for Participants or the Company
or any Related Corporation, no amendment shall be effective unless approved by the stockholders of
the Company to the extent stockholder approval is necessary for the Plan to satisfy the
requirements of Section 423 of the Code or other applicable laws or regulations.

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     (b) It is expressly contemplated that the Board may amend the Plan in any respect the Board
deems necessary or advisable to provide Employees with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated thereunder relating to
Employee Stock Purchase Plans and/or to bring the Plan and/or Purchase Rights into compliance
therewith.

     (c) The rights and obligations under any Purchase Rights granted before amendment of the Plan
shall not be impaired by any amendment of the Plan except: (i) with the consent of the person to
whom such Purchase Rights were granted, or (ii) as necessary to comply with any laws or
governmental regulations (including, without limitation, the provisions of the Code and the
regulations promulgated thereunder relating to Employee Stock Purchase Plans).

14. Termination or Suspension of the Plan.

     (a) The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the
Plan shall terminate at the time that all of the shares of Common Stock reserved for issuance under
the Plan, as increased and/or adjusted from time to time, have been issued under the terms of the
Plan. No Purchase Rights may be granted under the Plan while the Plan is suspended or after it is
terminated.

     (b) Any benefits, privileges, entitlements and obligations under any Purchase Rights while the
Plan is in effect shall not be impaired by suspension or termination of the Plan except (i) as
expressly provided in the Plan or with the consent of the person to whom such Purchase Rights were
granted, (ii) as necessary to comply with any laws, regulations or listing requirements, or (iii)
as necessary to ensure that the Plan and/or Purchase Rights comply with the requirements of Section
423 of the Code.

15. Effective Date of Plan.

     The Plan shall become effective on the IPO Date, but no Purchase Rights shall be exercised
unless and until the Plan has been approved by the stockholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

16. Definitions.

     As used in the Plan, the following definitions shall apply to the capitalized terms indicated
below:

     (a) “Board” means the Board of Directors of the Company.

     (b) “Capitalization Adjustment” means any change that is made in, or other events that occur
with respect to, the Common Stock subject to the Plan or subject to any Purchase Right after the
Effective Date without the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than
cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in
corporate structure or other transaction not involving the receipt of consideration by the
Company). Notwithstanding the foregoing, the conversion of any

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convertible securities of the Company shall not be treated as a transaction “without receipt
of consideration” by the Company.

     (c) “Code” means the Internal Revenue Code of 1986, as amended.

     (d) “Committee” means a committee of one (1) or more members of the Board to whom authority
has been delegated by the Board in accordance with Section 2(c).

     (e) “Common Stock” means the common stock of the Company.

     (f) “Company” means Hansen Medical, Inc., a Delaware corporation.

     (g) “Contributions” means the payroll deductions and other additional payments specifically
provided for in the Offering that a Participant contributes to fund the exercise of a Purchase
Right. A Participant may make additional payments into his or her account, if specifically provided
for in the Offering, and then only if the Participant has not already had the maximum permitted
amount withheld during the Offering through payroll deductions.

     (h) “Corporate Transaction” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events:

          (i) a sale or other disposition of all or substantially all, as determined by the Board in its
sole discretion, of the consolidated assets of the Company and its Subsidiaries;

          (ii) a sale or other disposition of at least ninety percent (90%) of the outstanding
securities of the Company;

          (iii) the consummation of a merger, consolidation or similar transaction following which the
Company is not the surviving corporation; or

          (iv) the consummation of a merger, consolidation or similar transaction following which the
Company is the surviving corporation but the shares of Common Stock outstanding immediately
preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of
the merger, consolidation or similar transaction into other property, whether in the form of
securities, cash or otherwise.

     (i) “Director” means a member of the Board.

     (j) “Eligible Employee” means an Employee who meets the requirements set forth in the Offering
for eligibility to participate in the Offering, provided that such Employee also meets the
requirements for eligibility to participate set forth in the Plan.

     (k) “Employee” means any person, including Officers and Directors, who is employed for
purposes of Section 423(b)(4) of the Code by the Company or a Related Corporation. However,
service solely as a Director, or payment of a fee for such services, shall not cause a Director to
be considered an “Employee” for purposes of the Plan.

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     (l) “Employee Stock Purchase Plan” means a plan that grants Purchase Rights intended to be
options issued under an “employee stock purchase plan,” as that term is defined in Section 423(b)
of the Code.

     (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (n) “Fair Market Value” means, as of any date, the value of the Common Stock determined as
follows:

          (i) If the Common Stock is listed on any established stock exchange or traded on the Nasdaq
National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock
shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as
quoted on such exchange or market (or the exchange or market with the greatest volume of trading in
the Common Stock) on the date of determination, as reported in The Wall Street Journal or such
other source as the Board deems reliable. Unless otherwise provided by the Board, if there is no
closing sales price (or closing bid if no sales were reported) for the Common Stock on the date of
determination, then the Fair Market Value shall be the closing selling price (or closing bid if no
sales were reported) on the last preceding date for which such quotation exists.

          (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined by the Board in good faith.

     (o) “IPO Date” means the date of the underwriting agreement between the Company and the
underwriter(s) managing the initial public offering of the Common Stock, pursuant to which the
Common Stock is priced for the initial public offering.

     (p) “Offering” means the grant of Purchase Rights to purchase shares of Common Stock under the
Plan to Eligible Employees.

     (q) “Offering Date” means a date selected by the Board for an Offering to commence.

     (r) “Officer” means a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

     (s) “Participant” means an Eligible Employee who holds an outstanding Purchase Right granted
pursuant to the Plan.

     (t) “Plan” means this Hansen Medical, Inc. 2006 Employee Stock Purchase Plan.

     (u) “Purchase Date” means one or more dates during an Offering established by the Board on
which Purchase Rights shall be exercised and as of which purchases of shares of Common Stock shall
be carried out in accordance with such Offering.

     (v) “Purchase Period” means a period of time specified within an Offering beginning on the
Offering Date or on the next day following a Purchase Date within an Offering and ending on a
Purchase Date. An Offering may consist of one or more Purchase Periods.

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     (w) “Purchase Right” means an option to purchase shares of Common Stock granted pursuant to
the Plan.

     (x) “Related Corporation” means any “parent corporation” or “subsidiary corporation” of the
Company whether now or subsequently established, as those terms are defined in Sections 424(e) and
424(f), respectively, of the Code.

     (y) “Securities Act” means the Securities Act of 1933, as amended.

     (z) “Trading Day” means any day on which the exchange(s) or market(s) on which shares of
Common Stock are listed, whether it be an established stock exchange or otherwise, is open for
trading.

 12.exv10w6

 

Exhibit 10.6

Hansen Medical, Inc.

2006 Employee Stock Purchase Plan

Offering Document

Adopted
by the Board of Directors: August 4, 2006

     In this document, capitalized terms not otherwise defined shall have the same definitions of
such terms as in the Hansen Medical, Inc. 2006 Employee Stock Purchase Plan.

1. Grant; Offering Date.

     (a) The Board hereby authorizes a series of Offerings pursuant to the terms of this Offering
document.

     (b) The first Offering hereunder (the “Initial Offering”) shall begin on the date the Common
Stock is first offered to the public under a registration statement declared effective under the
Securities Act and shall end on March 31, 2007, unless terminated earlier as provided below. The
Initial Offering shall consist of one (1) Purchase Period, with the first Purchase Period ending on
March 31, 2007.

     (c) After the Initial Offering commences, an Offering shall begin on April 1 and October 1
each year over the term of the Plan and shall be approximately six (6) months in duration. Each
Offering shall consist of one (1) Purchase Period which shall be approximately (6) months in length
ending on March 31 and September 30 each year. Except as provided below, a Purchase Date is the
last day of a Purchase Period and an Offering.

     (d) Notwithstanding the foregoing: (i) if any Offering Date falls on a day that is not a
Trading Day, then such Offering Date shall instead fall on the next subsequent Trading Day, and
(ii) if any Purchase Date falls on a day that is not a Trading Day, then such Purchase Date shall
instead fall on the immediately preceding Trading Day.

     (e) Prior to the commencement of any Offering, the Board may change any or all terms of such
Offering and any subsequent Offerings. The granting of Purchase Rights pursuant to each Offering
hereunder shall occur on each respective Offering Date unless prior to such date (i) the Board
determines that such Offering shall not occur, or (ii) no shares of Common Stock remain available
for issuance under the Plan in connection with the Offering.

2. Eligible Employees.

     (a) Each Eligible Employee who is an Employee on the Offering Date of an Offering hereunder
and is either (i) an employee of the Company; (ii) an employee of a Related Corporation
incorporated in the United States; or (iii) an employee of a Related Corporation that is not
incorporated in the United States, provided that the Board has designated the employees of

 1.

 

such Related Corporation as eligible to participate in the Offering, shall be granted a
Purchase Right on the Offering Date of such Offering.

     (b) Each person who first becomes an Eligible Employee during an Offering shall not be able to
participate in such Offering.

     (c) Notwithstanding the foregoing, the following Employees shall not be Eligible
Employees or be granted Purchase Rights under an Offering:

          (i) Employees whose customary employment is twenty (20) hours per week or less or five (5)
months per calendar year or less;

          (ii) five percent (5%) stockholders (including ownership through unexercised and/or unvested
stock options) as described in Section 5(c) of the Plan; or

          (iii) Employees in jurisdictions outside of the United States if, as of the Offering Date of
the Offering, the grant of such Purchase Rights would not be in compliance with the applicable laws
of any jurisdiction in which the Employee resides or is employed.

3. Purchase Rights.

     (a) Subject to the limitations herein and in the Plan, a Participant’s Purchase Right shall
permit the purchase of the number of shares of Common Stock purchasable with up to fifteen percent
(15%) of such Participant’s Earnings paid during the period of such Offering beginning immediately
after such Participant first commences participation; provided, however, that no Participant may
have more than fifteen percent (15%) of such Participant’s Earnings applied to purchase shares of
Common Stock under all ongoing Offerings under the Plan and all other plans of the Company and
Related Corporations that are intended to qualify as Employee Stock Purchase Plans.

     (b) For Offerings hereunder, “Earnings” means the base compensation paid to a Participant,
including all salary, wages (including amounts elected to be deferred by such Participant, that
would otherwise have been paid, under any cash or deferred arrangement or other deferred
compensation program established by the Company or a Related Corporation), overtime pay,
commissions and bonuses; but excluding all other remuneration paid directly to such Participant,
profit sharing, the cost of employee benefits paid for by the Company or a Related Corporation,
education or tuition reimbursements, imputed income arising under any Company or Related
Corporation group insurance or benefit program, traveling expenses, business and moving expense
reimbursements, income received in connection with stock options, contributions made by the Company
or a Related Corporation under any employee benefit plan, and similar items of compensation.

     (c) Notwithstanding the foregoing, the maximum number of shares of Common Stock that a
Participant may purchase on any Purchase Date in an Offering shall be such number of shares as has
a Fair Market Value (determined as of the Offering Date for such Offering) equal to (x) $25,000
multiplied by the number of calendar years in which the Purchase Right under such Offering has been
outstanding at any time, minus (y) the Fair Market Value of any other shares of Common Stock
(determined as of the relevant Offering Date with respect to such

 2.

 

shares) that, for purposes of the limitation of Section 423(b)(8) of the Code, are attributed
to any of such calendar years in which the Purchase Right is outstanding. The amount in clause (y)
of the previous sentence shall be determined in accordance with regulations applicable under
Section 423(b)(8) of the Code based on (i) the number of shares previously purchased with respect
to such calendar years pursuant to such Offering or any other Offering under the Plan, or pursuant
to any other Company or Related Corporation plans intended to qualify as Employee Stock Purchase
Plans, and (ii) the number of shares subject to other Purchase Rights outstanding on the Offering
Date for such Offering pursuant to the Plan or any other such Company or Related Corporation
Employee Stock Purchase Plan.

     (d) The maximum aggregate number of shares of Common Stock available to be purchased by all
Participants on a Purchase Date shall be the number of shares of Common Stock then remaining
available under the Plan. If the aggregate purchase of shares of Common Stock upon exercise of
Purchase Rights granted under the Offering would exceed the maximum aggregate number of shares
available, the Board shall make a pro rata allocation of the shares available in a uniform and
equitable manner.

     (e) Notwithstanding the foregoing, the maximum number of shares of Common Stock that an
Eligible Employee may purchase during any Offering shall not exceed one thousand five hundred
(1,500) shares.

4. Purchase Price.

     The purchase price of shares of Common Stock under the Offering shall be the lesser of: (i)
eighty-five percent (85%) of the Fair Market Value of such shares of Common Stock on the Offering
Date, or (ii) eighty-five percent (85%) of the Fair Market Value of such shares of Common Stock on
the Purchase Date. For the Initial Offering, the Fair Market Value of the shares of Common Stock
at the time when the Offering commences shall be the price per share at which shares are first sold
to the public in the Company’s initial public offering as specified in the final prospectus for
that initial public offering.

5. Participation.

     (a) An Eligible Employee may elect to participate in an Offering on the Offering Date. An
Eligible Employee shall elect his or her payroll deduction percentage on such enrollment form as
the Company provides. The completed enrollment form must be delivered to the Company prior to the
date participation is to be effective, unless a later time for filing the enrollment form is set by
the Company for all Eligible Employees with respect to a given Offering. Payroll deduction
percentages must be expressed in whole percentages of Earnings, with a minimum percentage of one
percent (1%) and a maximum percentage of fifteen percent (15%). Except as provided in Section
5(e), a Participant may participate only by way of payroll deductions.

     (b) A Participant may not increase his or her participation level during an Offering. Subject
to Section 5(e), a Participant may decrease his or her participation level during an Offering,
provided that such decrease is to zero percent (0%). Any such decrease in participation level
shall be made by delivering a notice to the Company or a designated Related Corporation in

 3.

 

such form as the Company provides prior to the ten (10) day period (or such shorter period of
time as determined by the Company and communicated to Participants) immediately preceding the
payroll date for which it is to be effective.

     (c) A Participant may withdraw from an Offering and receive a refund of his or her
Contributions (reduced to the extent, if any, such Contributions have been used to acquire shares
of Common Stock for the Participant on any prior Purchase Date, if applicable) without interest, at
any time prior to the end of the Offering, excluding only each ten (10) day period immediately
preceding a Purchase Date (or such shorter period of time determined by the Company and
communicated to Participants), by delivering a withdrawal notice to the Company or a designated
Related Corporation in such form as the Company provides. A Participant who has withdrawn from an
Offering shall not again participate in such Offering, but may participate in subsequent Offerings
under the Plan in accordance with the terms of the Plan and the terms of such subsequent Offerings.

     (d) Notwithstanding the foregoing or any other provision of this Offering document or of the
Plan to the contrary, neither the enrollment of any Eligible Employee in the Plan nor any forms
relating to participation in the Plan shall be given effect until such time as a registration
statement covering the shares reserved under the Plan that are subject to the Offering has been
filed by the Company and has become effective.

     (e) If the provisions of Section 5(d) are applicable, the Company shall establish such
procedures as will enable the purposes of the Plan to be satisfied while complying with applicable
securities laws. Such procedures may include, for example, allowing Participants to participate
other than by means of payroll deduction and/or allowing Participants to decrease their level of
participation during an Offering to a level other than zero percent (0%).

     Except as otherwise provided by the Company pursuant to the preceding sentence, for the
Initial Offering ending March 31, 2007, no payroll deductions shall be required from the Eligible
Employee until such time as the Eligible Employee affirmatively elects to commence such payroll
deductions (which may be for a percentage that is less than fifteen percent (15%) of the Eligible
Employee’s Earnings) following the Eligible Employee’s receipt of the Securities Act prospectus for
the Plan. Each Eligible Employee shall automatically be enrolled in the Initial Offering with a
contribution rate equal to fifteen percent (15%) of the Eligible Employee’s Earnings, subject to
the limitations set forth in Sections 3(c)-(e). If an Eligible Employee elects not to authorize
payroll deductions for the purchase of shares during the Initial Offering, the Eligible Employee
instead may purchase shares of Common Stock under the Plan by delivering a single cash payment for
the purchase of such shares to the Company or a designated Related Corporation prior to the ten
(10) day period immediately preceding the Purchase Date under the Initial Offering (or such shorter
period of time determined by the Company and communicated to Participants). To the extent that the
Eligible Employee’s payroll deductions for the Initial Offering are less than fifteen percent (15%)
of Earnings paid to the Eligible Employee during the Initial Offering, the Eligible Employee may
make an additional cash payment at any time to the Company or a designated Related Corporation
prior to the ten (10) day period immediately preceding the Purchase Date under the Initial Offering
(or such shorter period of time determined by the Company and communicated to Participants) in
order to fund the purchase of shares of Common Stock purchased on behalf of the Eligible Employee
on the Purchase Date under the

 4.

 

Initial Offering. If an Eligible Employee neither elects to authorize payroll deductions nor
chooses to make a cash payment in accordance with the foregoing, then no shares shall be purchased
on behalf of the Eligible Employee on the Purchase Date under the Initial Offering.

     After the end of the Initial Offering, in order to participate in any subsequent Offerings, an
Eligible Employee must enroll and authorize payroll deductions prior to the commencement of the
Offering, in accordance with Section 5(a); provided, however, that once an Eligible Employee
enrolls in an Offering and authorizes payroll deductions (including in connection with the Initial
Offering), the Eligible Employee automatically shall be enrolled for all subsequent Offerings until
he or she elects to withdraw from an Offering pursuant to Section 5(c) above or terminates his or
her participation in the Plan.

6. Purchases.

     Subject to the limitations contained herein, on each Purchase Date, each Participant’s
Contributions (without any increase for interest) shall be applied to the purchase of whole shares,
up to the maximum number of shares permitted under the Plan and the Offering.

7. Notices and Agreements.

     Any notices or agreements provided for in an Offering or the Plan shall be given in writing,
in a form provided by the Company (including documents delivered in electronic form, if authorized
by the Committee), and unless specifically provided for in the Plan or this Offering, shall be
deemed effectively given upon receipt or, in the case of notices and agreements delivered by the
Company, five (5) days after deposit in the United States mail, postage prepaid.

8. Exercise Contingent on Stockholder Approval.

     The Purchase Rights granted under an Offering are subject to the approval of the Plan by the
stockholders of the Company as required for the Plan to obtain treatment as an Employee Stock
Purchase Plan.

9. Offering Subject to Plan.

     Each Offering is subject to all the provisions of the Plan, and the provisions of the Plan are
hereby made a part of the Offering. The Offering is further subject to all interpretations,
amendments, rules and regulations which may from time to time be promulgated and adopted pursuant
to the Plan. In the event of any conflict between the provisions of an Offering and those of the
Plan (including interpretations, amendments, rules and regulations which may from time to time be
promulgated and adopted pursuant to the Plan), the provisions of the Plan shall control.

 5.

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