Document:

exv4w2

[***] Indicates
text has been omitted from this Exhibit pursuant to a confidential treatment
request and has been filed separately with the Securities and Exchange Commission.

Exhibit 4.2

FLUIDIGM CORPORATION

SERIES E PREFERRED STOCK PURCHASE AGREEMENT

First Closing: June 13, 2006

Second Closing: December 22, 2006

Third Closing: March 30, 2007

Fourth Extended Closing: October 10, 2007

Fifth Extended Closing: October 26, 2007

Sixth Extended Closing: December 31, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1.	 	Purchase and Sale of Preferred Stock	 	 	1	 
	 
	 	1.1	 	Authorization of the Shares	 	 	1	 
	 
	 	1.2	 	Purchase and Sale of the Shares	 	 	1	 
	 
	 	1.3	 	Closing Date	 	 	1	 
	 
	 	1.4	 	Delivery	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	2.	 	Representations and Warranties of the Company	 	 	2	 
	 
	 	2.1	 	Organization, Good Standing and Qualification	 	 	2	 
	 
	 	2.2	 	Corporate Power	 	 	2	 
	 
	 	2.3	 	Subsidiaries	 	 	2	 
	 
	 	2.4	 	Capitalization	 	 	2	 
	 
	 	2.5	 	Authorization	 	 	3	 
	 
	 	2.6	 	Valid Issuance of Preferred and Common Stock	 	 	3	 
	 
	 	2.7	 	Governmental Consents	 	 	4	 
	 
	 	2.8	 	Litigation	 	 	4	 
	 
	 	2.9	 	Employees	 	 	4	 
	 
	 	2.10	 	Patents and Other Intangible Assets	 	 	5	 
	 
	 	2.11	 	Compliance with Other Instruments	 	 	7	 
	 
	 	2.12	 	Permits	 	 	7	 
	 
	 	2.13	 	Environmental and Safety Laws	 	 	7	 
	 
	 	2.14	 	Title to Property and Assets	 	 	7	 
	 
	 	2.15	 	Agreements; Action	 	 	7	 
	 
	 	2.16	 	Financial Statements	 	 	8	 
	 
	 	2.17	 	Changes	 	 	9	 
	 
	 	2.18	 	Brokers or Finders	 	 	9	 
	 
	 	2.19	 	Qualified Small Business Stock	 	 	9	 
	 
	 	2.20	 	Employee Benefit Plans	 	 	10	 
	 
	 	2.21	 	Tax Matters	 	 	10	 
	 
	 	2.22	 	Insurance	 	 	10	 
	 
	 	2.23	 	Corporate Documents	 	 	10	 
	 
	 	2.24	 	Disclosure	 	 	10	 
	 
	 	2.25	 	Offering	 	 	11	 
	 
	 	2.26	 	Returns and Complaints	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	3.	 	Representations and Warranties of the Purchasers	 	 	11	 
	 
	 	3.1	 	Experience	 	 	11	 
	 
	 	3.2	 	Investment	 	 	11	 
	 
	 	3.3	 	Rule 144	 	 	11	 
	 
	 	3.4	 	Legends	 	 	12	 
	 
	 	3.5	 	No Public Market	 	 	12	 
	 
	 	3.6	 	Access to Data	 	 	12	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	3.7	 	Authorization	 	 	12	 
	 
	 	3.8	 	Accredited Investor	 	 	12	 
	 
	 	3.9	 	Public Solicitation	 	 	12	 
	 
	 	3.10	 	Tax Advisors	 	 	12	 
	 
	 	3.11	 	Purchaser Counsel	 	 	12	 
	 
	 	3.12	 	Brokers or Finders	 	 	13	 
	 
	 	3.13	 	Non-United States Persons	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	4.	 	Conditions of Purchaser’s Obligations at Closing	 	 	13	 
	 
	 	4.1	 	Representations and Warranties	 	 	13	 
	 
	 	4.2	 	Performance	 	 	13	 
	 
	 	4.3	 	Compliance Certificate	 	 	13	 
	 
	 	4.4	 	Blue Sky	 	 	13	 
	 
	 	4.5	 	Opinion of Company Counsel	 	 	13	 
	 
	 	4.6	 	Investor Rights Agreement	 	 	14	 
	 
	 	4.7	 	Restated Articles	 	 	14	 
	 
	 	4.8	 	Corporate Proceedings; Waivers and Consents	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	5.	 	Conditions of the Company’s Obligations at Closing	 	 	14	 
	 
	 	5.1	 	Representations and Warranties	 	 	14	 
	 
	 	5.2	 	Payment of Purchase Price	 	 	14	 
	 
	 	5.3	 	Blue Sky	 	 	14	 
	 
	 	5.4	 	Investor Rights Agreements	 	 	14	 
	 
	 	5.5	 	Restated Articles	 	 	14	 
	 
	 	5.6	 	Proceedings and Documents	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	6.	 	Miscellaneous	 	 	14	 
	 
	 	6.1	 	Governing Law; Jurisdiction	 	 	14	 
	 
	 	6.2	 	Indemnification	 	 	15	 
	 
	 	6.3	 	Survival	 	 	15	 
	 
	 	6.4	 	Successors and Assigns	 	 	15	 
	 
	 	6.5	 	Entire Agreement; Amendment	 	 	15	 
	 
	 	6.6	 	Notices, Etc	 	 	15	 
	 
	 	6.7	 	Delays or Omissions	 	 	16	 
	 
	 	6.8	 	California Corporate Securities Law	 	 	16	 
	 
	 	6.9	 	Finder’s Fee	 	 	16	 
	 
	 	6.10	 	Expenses	 	 	16	 
	 
	 	6.11	 	Waiver of Conflict	 	 	16	 
	 
	 	6.12	 	Severability	 	 	17	 
	 
	 	6.13	 	Counterparts; Facsimile	 	 	17	 
	 
	 	6.14	 	Titles and Subtitles	 	 	17	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	6.15	 	Exculpation Among Purchasers	 	 	17	 
	 
	 	6.16	 	Like Treatment of Holders	 	 	17	 
	 
	 	6.17	 	Jury Trial	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	EXHIBITS	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Exhibit A	 	Schedule of Purchasers	 	 	 	 
	Exhibit B	 	Form of Amended and Restated Articles of Incorporation	 	 	 	 
	Exhibit C	 	Schedule of Exceptions	 	 	 	 
	Exhibit D	 	Form of Eighth Amended and Restated Investor Rights Agreement	 	 	 	 
	Exhibit E	 	Form of Legal Opinion	 	 	 	 

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SERIES E PREFERRED STOCK PURCHASE AGREEMENT

     THIS SERIES E PREFERRED STOCK PURCHASE AGREEMENT is made as of June 13, 2006, by and among
Fluidigm Corporation, a California corporation (the “Company”), and the purchasers listed on the
Schedule of Purchasers attached hereto as EXHIBIT A (the “Schedule of Purchasers”). The
persons or entities listed thereon are hereinafter referred to collectively as the “Purchasers” and
individually as a “Purchaser.”

     THE PARTIES HEREBY AGREE AS FOLLOWS:

     1. Purchase and Sale of Preferred Stock.

          1.1 Authorization of the Shares. The Company will on or before the Closing
(as defined below) authorize the sale and issuance pursuant to this Agreement of up
to 5,000,000 shares (the “Shares”) of its Series E Preferred Stock (the “Series E
Preferred”), having the rights, preferences and privileges as set forth in the
Amended and Restated Articles of Incorporation attached hereto as EXHIBIT B
(the “Restated Articles”).

          1.2 Purchase and Sale of the Shares. Subject to the terms and conditions
hereof and in reliance upon the representations, warranties and agreements contained
herein, the Company will issue and sell to each Purchaser, severally and not jointly,
and each Purchaser will purchase from the Company, severally and not jointly, at the
Closing, the number of Shares set forth opposite the Purchaser’s name on the Schedule
of Purchasers, at a purchase price of Four Dollars ($4.00) per Share. The Company
shall be entitled to sell any unpurchased Shares to any Purchaser or to a person who
is not a Purchaser and to amend the Schedule of Purchasers to include the information
relating to such sales, and such purchasers shall be considered “Purchasers” and
parties to this Agreement; provided that (i) such sales are made pursuant to this
Agreement or an agreement identical to this one except for the Closing Date and
exhibits, and (ii) such sales are completed within 120 days of the Initial Closing
(as defined below). The Company’s agreement with each Purchaser is a separate
agreement, and the sale of the Shares to each Purchaser is a separate sale.

          1.3 Closing Date. The first closing of the purchase and sale of the Shares
hereunder (the “Initial Closing”) shall be held at the offices of Wilson Sonsini
Goodrich & Rosati, 650 Page Mill Road, Palo Alto, California 94304 on June 13, 2006
(the “Closing Date”) or such other date as the Company and a majority-in-interest of
the Purchasers may agree. Subject to Section 1.2 above, subsequent closings under
this Agreement may be held from time to time after the Initial Closing at such time
and place as the Company and the relevant Purchasers agree (“Subsequent Closings”).
For the purposes of this Agreement, the term “Closing” and “Closing Date” unless
otherwise indicated, refers to the closing or date of closing
of the purchase and sale of the Shares with respect to a particular Purchaser or
group of Purchasers, whether such closing occurs at the Initial Closing or at a
Subsequent Closing.

          1.4 Delivery. At Closing, the Company shall deliver to each Purchaser a
certificate, in such denomination and registered in Purchaser’s name as set forth on
the Schedule of Purchasers, representing the number of Shares which Purchaser is
purchasing from the Company

 

 

against delivery to the Company of a check or wire
transfer payable to the order of the Company in the amount of the purchase price of
the Shares to be purchased by such Purchaser.

     2. Representations and Warranties of the Company. The Company hereby represents
and warrants to Purchaser that, except as set forth in the Schedule of Exceptions attached
hereto as EXHIBIT C (the “Schedule of Exceptions”), which has been delivered to each
Purchaser prior to Purchaser’s execution hereof, each of the representations, warranties and
statements contained in this Section 2 is true and correct as of the date of this Agreement and
will be true and correct on and as of the Closing Date. For all purposes of this Agreement,
the statements contained in the Schedule of Exceptions shall also be deemed to be
representations and warranties made and given by Company under this Agreement.

          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 currently conducted. The Company is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure to so
qualify, individually or in the aggregate, would have a material adverse effect on
its business (as now conducted), properties, or financial condition.

          2.2 Corporate Power. The Company will have at the Closing all requisite
legal and corporate power and authority to (i) execute and deliver this Agreement;
(ii) sell and issue the Shares hereunder; (iii) issue the Common Stock issuable upon
conversion of the Shares (the “Conversion Shares”); and (iv) carry out and perform
its obligations under the terms of this Agreement.

          2.3 Subsidiaries. The Company does not presently own or control, directly or
indirectly, any interest in any other corporation, association, or other business
entity.

          2.4 Capitalization. The authorized capital stock of the Company consists, or
immediately prior to the Initial Closing will consist, of 77,857,144 shares of Common
Stock (“Common Stock”), of which 9,274,356 shares are issued and outstanding
immediately prior to the Initial Closing and 51,687,948 shares of Preferred Stock
(“Preferred Stock”), 2,727,273 of which are designated Series A Preferred Stock of
which 2,727,273 are outstanding immediately prior to the Initial Closing; 6,460,675
of which are designated Series B Preferred Stock of which 6,460,675 are outstanding
immediately prior to the Initial Closing; 17,000,000 of which are designated Series C
Preferred Stock, 16,364,832 of which are issued and outstanding immediately prior to
the Initial Closing; and 15,500,000 of which are designated Series D Preferred Stock,
11,714,048 of which are issued and outstanding immediately prior to the Initial
Closing; and 10,000,000 of which are designated Series E Preferred Stock, none of
which will be outstanding immediately prior to the Initial Closing. All such issued
and outstanding shares have been duly authorized and validly issued in compliance
with applicable laws, and are fully paid and nonassessable.

     The Company has reserved: (i) 5,000,000 shares of Series E Preferred for issuance hereunder
and 5,000,000 shares of Common Stock for issuance upon conversion of such shares of Series E
Preferred; (ii) 11,714,048 shares of Common Stock for issuance upon conversion of the outstanding

-2-

 

shares of Series D Preferred; (iii) 916,335 shares of Series D Preferred for issuance upon exercise
of outstanding warrants and 916,335 shares of Common Stock for issuance upon conversion of such
Series D Preferred; (iv) 16,364,832 shares of Common Stock for issuance upon conversion of the
outstanding shares of Series C Preferred Stock; (v) 294,868 shares of Series C Preferred Stock for
issuance upon exercise of outstanding warrants and 294,868 shares of Common Stock for issuance upon
conversion of such Series C Preferred Stock; (vi) 6,460,675 shares of Common Stock for issuance
upon conversion of the outstanding Series B Preferred Stock; (vii) 2,727,273 shares of Common Stock
for issuance upon conversion of the outstanding Series A Preferred Stock; and (viii) an aggregate
of 10,800,000 shares of Common Stock for issuance to employees and consultants of the Company
pursuant to the Company’s 1999 Stock Option Plan, pursuant to which options to purchase 5,597,763
shares are granted and outstanding and 1,554,643 shares are available for future grant. Other than
with respect to the shares reserved for issuance in the preceding sentence, or as set forth in the
Ancillary Agreements (as defined below), there are no outstanding rights, options, warrants,
conversion rights, preemptive rights, rights of first refusal or similar rights for the purchase or
acquisition from the Company of any securities of the Company. There are no outstanding
obligations of the Company to repurchase or redeem any of its securities.

     Except as contemplated in the Investor Rights Agreement (as defined below), the Company has
not granted or agreed to grant any registration rights, including piggyback rights, to any person
or entity. Except as contemplated in the Second Amended and Restated Voting Agreement dated as of
August 16, 2005, the Company is not a party or subject to any agreement or understanding, and to
the Company’s knowledge, there is no agreement or understanding between any person or entities,
which relates to the voting or the giving of written consents with respect to any security of the
Company or by a director of the Company.

          2.5 Authorization. All corporate action on the part of the Company, its
officers, directors and shareholders necessary for the authorization, execution and
delivery of this Agreement, the Eighth Amended and Restated Investor Rights Agreement
in the form attached hereto as EXHIBIT D (the “Investor Rights Agreement”),
the performance of all obligations of the Company under this Agreement and the
Investor Rights Agreement (other than those registration obligations contained in
Section 1 of the Investor Rights Agreement), and any other agreements to which the
Company is a party, the execution and delivery of which is a contemplated hereby (the
“Ancillary
Agreements”) and the authorization, issuance (or reservation for issuance), sale and
delivery of the Shares and the Conversion Shares has been taken or will be taken
prior to the Closing. This Agreement and the Investor Rights Agreement constitute
valid and legally binding obligations of the Company, enforceable against the Company
in accordance with their respective terms, subject to: (i) judicial principles
limiting the availability of specific performance, injunctive relief, and other
equitable remedies; (ii) bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect generally relating to or affecting creditors’
rights; and (iii) limitations on the enforceability of the indemnification provisions
of the Investor Rights Agreement.

          2.6 Valid Issuance of Preferred and Common Stock. The Shares that are being purchased by the Purchasers hereunder, when issued, sold and
delivered in accordance with the

-3-

 

terms of this Agreement for the consideration expressed herein,
will be duly and validly issued, fully paid, and nonassessable, and will be free of restrictions on
transfer other than restrictions on transfer under this Agreement and the Investor Rights Agreement
and under applicable state and federal securities laws. The Conversion Shares have been duly and
validly reserved for issuance, and, upon issuance in accordance with the terms of the Restated
Articles, will be duly and validly issued, fully paid, and nonassessable and will be free of
restrictions on transfer other than restrictions on transfer under this Agreement and the Investor
Rights Agreement and under applicable state and federal securities laws. The Conversion Shares may
be issued without any registration or qualification under state and federal securities laws as such
laws are currently in effect.

          2.7 Governmental Consents. No consent, approval, order or authorization of,
or registration, qualification, designation, declaration or filing with, any federal,
state or local governmental authority on the part of the Company is required in
connection with the offer, sale or issuance of the Shares or the Conversion Shares or
the consummation of any other transaction contemplated hereby, except for (a) the
filing of the Restated Articles with the Secretary of State of the State of
California prior to the Closing and (b) filings required pursuant to applicable
federal and state securities laws and blue sky laws, which filings, the Company
covenants to complete within the required statutory period.

          2.8 Litigation. There is no action, suit, proceeding or investigation
pending or, to the Company’s knowledge, currently threatened against the Company
before any court, administrative agency or other governmental body which questions
the validity of this Agreement or the Investor Rights Agreement or the right of the
Company to enter into any of them, or to consummate the transactions contemplated
hereby or thereby, or which could result, either individually or in the aggregate, in
any material adverse change in the condition (financial or otherwise), business,
property, assets or liabilities of the Company, nor is the Company aware that there
is any basis for the foregoing. The Company is not a party or subject to, and none
of its assets is bound
by, the provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality. There is no action, suit, proceeding or
investigation by or involving the Company currently pending or that the Company
intends to initiate.

          2.9 Employees. Each employee of the Company has executed a proprietary
information and invention assignment agreement substantially in the form or forms
made available to the Purchasers. To the Company’s knowledge, no officer or key
employee is in violation of any prior employee contract or proprietary information
agreement. No employees of the Company are represented by any labor union or covered
by any collective bargaining agreement. There is no pending or, to the Company’s
knowledge, threatened labor dispute involving the Company and any group of its
employees. The Company is not aware that any officer or key employee intends to
terminate his or her employment with the Company within the six months after Closing.
The Company does not have a present intention to terminate the employment of any
officer or key employee. Each officer and key employee is devoting 100% of his or
her business time to the conduct of the business of the Company. The Company is not
aware that any officer or key employee intends to work less than full time during the
six months after Closing. Subject to general

-4-

 

principles related to wrongful
termination of employees, the employment of each officer and employee of the Company
is terminable at will.

          2.10 Patents and Other Intangible Assets.

               (a) The Company owns, or is licensed or otherwise has the legally enforceable right to use,
all copyrights, domain names, maskworks, applications for the issuance or registration of any of
the foregoing, trade secrets, confidential or proprietary know-how, data and information, ideas,
inventions, designs, developments, algorithms, processes, schematics, techniques, computer
programs, applications and other software, works of authorship, creative effort and, to the
Company’s knowledge after such investigation as the Company deemed reasonable, patents, patent
applications, trademarks (including service marks and design marks) and applications therefor,
tradenames (all of the foregoing generically, “Intellectual Property Rights”) utilized in, or
necessary for, its business as now conducted (collectively, the “Company Intellectual Property”)
without infringing upon the right of any person, corporation or other entity.

               (b) Section 2.10 of the Schedule of Exceptions lists (i) all patents and patent applications
and all registered and unregistered trademarks, trade names, copyrights and maskworks and
registered domain names included in the Company Intellectual Property, including the jurisdictions
in which each such intellectual property right has been issued or registered or in which any
application for such issuance or registration has been filed, (ii) all licenses, sublicenses,
collaborations and other agreements (or options for any of the foregoing) to which the Company is a
party and pursuant to which any person, corporation or other entity is authorized to use any of the
Company Intellectual Property, and (iii) all licenses, sublicenses, collaborations and other
agreements (or options for any of the foregoing) to which the Company is a party and pursuant
to which the Company is authorized to use any Intellectual Property Right of any third party (other
than standard licenses for commercially available software). Each of the agreements in (ii) and
(iii) above remain in full force and effect and, to the Company’s knowledge, no party to any such
agreement is in material breach or default under such agreement, and the Company is not aware of
any act or failure to act by a party which would constitute a material breach or default under any
such agreement, give rise to a right of the licensor to terminate any such agreement or otherwise
result in termination of, or suspension or loss of exclusive rights under, any such agreement.

               (c) To the Company’s knowledge, the Company has not infringed or misappropriated any
Intellectual Property Right of any other person, corporation or other entity. The Company has not
received any communication or otherwise received any information alleging any such conduct by the
Company or asserting a claim by any third party to the ownership of, or right to use, any of the
Company Intellectual Property, and the Company does not know of any basis for any such claim. The
Company is not aware of any action, suit, proceeding or investigation pending or currently
threatened against the Company (or any third party owner or licensor of rights to the Company of
any of the Company Intellectual Property) which would have a material impact on the Company’s
ownership of or exclusive or co-exclusive rights to use, the Company Intellectual Property.

-5-

 

               (d) The Company is not aware that any of its employees is obligated under any agreement, or
subject to any judgment, decree or order of any court or administrative agency, that would
materially interfere with his or her ability to fully and freely perform their duties to the
Company or that would conflict with the Company’s business. To the Company’s knowledge, neither
the filing of the Restated Articles nor the execution and delivery of this Agreement or the
Investor Rights Agreement, nor the carrying on of the Company’s business by the employees of the
Company, will conflict with or result in a material breach of the terms, conditions, or provisions
of, or constitute a default under, any agreement under which any such employee is now obligated.
The Company does not utilize, and will not be required to utilize, any invention, development or
work of authorship of any of its employees (or persons it currently intends to hire) made prior to
their employment by the Company.

               (e) Except as described in Schedule 2.10, (i) the Company is not obligated, or under any
liability whatsoever to make any payments by way of royalties, fees or otherwise, to any owner or
licensor of, or other claimant to, any Company Intellectual Property, and (ii) the Company is not a
party to any agreement concerning the Company Intellectual Property or any other Intellectual
Property Right used or to be used by the Company in its business as conducted. No founder,
director, officer or employee of the Company, or, to the Company’s knowledge, no shareholder of the
Company has any interest in the Company Intellectual Property.

               (f) Except with respect to any rights granted under the agreements described in Schedule 2.10,
the Company owns exclusively all rights arising from or associated with the research and
development efforts of the Company, its founders, employees and independent contractors relating to
the Company’s business as now conducted, and all such rights form part of
the Company Intellectual Property. The Company has secured valid written assignments from all
employees and independent contractors who contributed to the creation or development of any of the
Company Intellectual Property of the rights to such contributions that the Company does not already
own by operation of law. The Company has not received notice of any claim being asserted by any
current or former employee, independent contractor or other third party to the ownership, of or
right to use, any of the Company Intellectual Property, or challenging or questioning the validity
of any of the Company Intellectual Property, and the Company is not aware of any basis for any such
claim.

               (g) The Company has taken reasonable steps to protect and preserve the confidentiality of all
material trade secrets included in Company Intellectual Property not otherwise protected by patents
or copyright (“Confidential Information”). All disclosure of Confidential Information to a third
party has been pursuant to the terms of a written confidentiality or non-disclosure agreement
between the Company and such third party.

               (h) The Company hereby represents and warrants that the data, written and oral reports and
other representations and information that the Company provided to its investors (or their counsel)
pertaining to the Company Intellectual Property, when taken as a whole, were truthful and, to the
Company’s knowledge, accurate in all material respects, and there was no omission therefrom which
made such information misleading, or incomplete in any material way.

-6-

 

          2.11 Compliance with Other Instruments. The Company is not in violation or default of any provision of its Articles of
Incorporation or Bylaws, each as amended and in effect on and as of the Closing. The Company is
not in violation or default of any material provision of any instrument, mortgage, deed of trust,
loan, contract, commitment, judgment, decree, order or obligation to which it is a party or by
which it or any of its properties or assets are bound or, to the best of its knowledge, of any
provision of any federal, state or local statute, rule or governmental regulation. The execution,
delivery and performance of and compliance with this Agreement and the Investor Rights Agreement,
and the issuance and sale of the Shares, will not result in any such violation, be in conflict with
or constitute, with or without the passage of time or giving of notice, a default under any such
provision, license, indenture, instrument, mortgage, deed of trust, loan, contract, commitment,
judgment, decree, order or obligation; or require any consent or waiver under any such provision,
license, indenture, instrument, mortgage, deed of trust, loan, contract, commitment, judgment,
decree, order or obligation (other than any consents or waivers that have been obtained); or result
in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or
assets of the Company pursuant to any such provision, license, indenture, instrument, mortgage,
deed of trust, loan, contract, commitment, judgment, decree, order or obligation.

          2.12 Permits. The Company has all franchises, permits, licenses, and any
similar authority necessary for the conduct of its business as now being conducted by
it. The Company is not in default in any material respect under any of such
franchises, permits, licenses, or other similar authority.

          2.13 Environmental and Safety Laws. To its knowledge, the Company is not in violation of any applicable statute, law, or regulation
relating to the environment or occupational health and safety, and to its knowledge, no material
expenditures by the Company are or will be required in order to comply with any such existing
statute, law, or regulation.

          2.14 Title to Property and Assets. The Company has good and marketable title
to all of its properties and assets free and clear of all pledges, mortgages, liens
security interests, charges and encumbrances, except liens for current taxes and
assessments not yet due and possible minor liens and encumbrances which do not, in
any case, individually or in the aggregate, materially detract from the value of the
property subject thereto or materially impair the ownership or use of said property
or assets, or the operations of the Company. With respect to the property and assets
it leases, the Company is in compliance with such leases and, to the best of its
knowledge, holds a valid leasehold interest free of all liens, claims or
encumbrances. The Company’s properties and assets are in good condition and repair
in all material respects.

          2.15 Agreements; Action.

               (a) Except for agreements contemplated by this Agreement, there are no agreements,
understandings or proposed transactions between the Company and any of its officers, directors,
affiliates, or any affiliate thereof other than standard option grants and stock purchase
agreements entered into prior to the date of this Agreement.

-7-

 

               (b) There are no agreements, understandings, instruments, contracts, proposed transactions,
judgments, orders, writs or decrees to which the Company is a party or by which it is bound that
may involve (i) obligations (contingent or otherwise) of, or payments by the Company in excess of,
$100,000, other than in the ordinary course of business, (ii) the license of any patent, copyright,
trade secret or other proprietary right to or from the Company other than standard commercial
software licenses, (iii) provisions restricting or adversely affecting the development, manufacture
or distribution of the Company’s products or services, or (iv) indemnification by the Company with
respect to infringements of proprietary rights other than indemnifications entered into in the
ordinary course of business.

               (c) For the purposes of subsection (b) above, all indebtedness, liabilities, agreements,
understandings, instruments, contracts and proposed transactions involving the same person or
entity (including persons or entities the Company has reason to believe are affiliated therewith)
shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such
subsection.

               (d) The Company is not a party to and is not bound by any contract, agreement or instrument,
or subject to any restriction under its Restated Articles or its Bylaws that adversely affects its
business as now conducted, its properties or its financial condition.

               (e) The Company is not a guarantor or indemnitor of any indebtedness of any other person or
entity.

               (f) The Company has not engaged in the past three months in any discussion (i) with any
representative of any entity or entities regarding the merger of the Company with or into any such
entity or entities or any affiliate thereof, (ii) with any representative of any entity or any
individual regarding the sale, conveyance or disposition of all or substantially all of the assets
of the Company or a transaction or series of related transactions in which more than fifty percent
(50%) of the voting power of the Company would be disposed of, or (iii) regarding any other form of
liquidation, dissolution or winding up of the Company.

          2.16 Financial Statements. The Company has made available to each Purchaser
its unaudited balance sheet dated as of December 31, 2005 and the unaudited statement
of operations for the fiscal year then ended, its unaudited balance sheet as of March
31, 2006, and its unaudited statement of operations and cash flow statement covering
the three month period then ended (collectively, the “Financial Statements”). The
Financial Statements are complete and correct in all material respects and have been
prepared in accordance with generally accepted accounting principles applied on a
consistent basis throughout the periods indicated. The Financial Statements
accurately set out and describe the financial condition and operating results of the
Company as of the date, and during the periods, indicated therein. Except as set
forth in the Financial Statements, the Company has no material liabilities,
contingent or otherwise, other than (i) liabilities incurred in the ordinary course
of business subsequent to March 31, 2006 and (ii) obligations under contracts and
commitments incurred in the ordinary course of business and not required under
generally accepted accounting principles to be reflected in the Financial Statements,
which, in both cases, individually or in the aggregate are not material to the
financial condition or operating results of the Company.

-8-

 

          2.17 Changes. Since March 31 2006:

          (a) the Company has not (i) declared or paid any dividends or authorized or made any
distribution upon or with respect to any class or series of its capital stock, (ii) incurred any
indebtedness for money borrowed or any other liabilities outside the ordinary course of its
business individually in excess of $100,000 or, in the case of indebtedness and/or liabilities
individually less than $100,000, in excess of $200,000 in the aggregate, (iii) made any loans or
advances to any person, other than ordinary advances for reimbursable businesses expenses,
(iv) sold, exchanged, assigned, transferred, licensed or otherwise disposed of any of its assets or
rights (including Company Intellectual Property), other than the sale of its inventory in the
ordinary course of business, (v) waived or compromised a valuable right or a material debt owed to
it, (vi) materially changed any compensation arrangement or agreement with any employee, officer,
director or shareholder, or (vii) arranged or committed to do any of the things described in this
subsection (a); and

          (b) there has not been (i) a loss of, or a material order cancellation by, any major customer
of the Company, (ii) any damage, destruction or loss, whether or not covered by insurance,
materially and adversely affecting the business, properties, or financial condition of the Company,
(iii) any change in the assets, liabilities, financial condition or operating results of the
Company from that reflected in the Financial Statements, except changes in the ordinary course of
business that have not been, in the aggregate, materially adverse, (iv) any resignation or
termination of any officer or key employee of the Company, and the Company is not aware of the
impending resignation or termination of employment of any such officer, or (v) to the best of the
Company’s knowledge, any other event or condition of any character that would materially and
adversely affect the business, properties, or financial condition of the Company.

          2.18 Brokers or Finders. The Company has not agreed to incur, directly or
indirectly, any liability for brokerage or finders’ fees, agents’ commissions or
other similar charges in connection with this Agreement or any of the transactions
contemplated hereby.

          2.19 Qualified Small Business Stock.

          (a) As of and immediately following the Closing, the Shares will meet each of the requirements
for qualification as “qualified small business stock” set forth in Section 1202(c) of the Internal
Revenue Code of 1986, as amended (the “Code”), including without limitation the following: (i) the
Company will be a domestic C corporation, (ii) the Company will not have made any purchases of its
own stock described in Code Section 1202(c)(3)(B) during the one-year period preceding the Closing,
and (iii) the Company’s (and any predecessor’s) aggregate gross assets, as defined by Code Section
1202(d)(2), at no time from the date of incorporation of the Company and through the Closing have
exceeded or will exceed $50 million, taking into account the assets of any corporations required to
be aggregated with the Company in accordance with Code Section 1202(d)(3).

          (b) As of the Closing, at least 80% (by value) of the assets of the Company are used by it in
the active conduct of one or more qualified trades or businesses, as defined by Code

-9-

 

Section
1202(e)(3), and the Company is an eligible corporation, as defined by Code Section 1202(e)(4).

          2.20 Employee Benefit Plans. The Company does not have any Employee Benefit
Plan as defined in the Employee Retirement Income Security Act of 1974 other than the
Company’s 401(k) Plan. The Company is in material compliance with the terms of the
Company’s 401(k) Plan and has not received notice of any material increase in the
costs of such plans.

          2.21 Tax Matters. The Company has filed all tax returns and reports as
required by law. These returns and reports are true and correct in all material
respects. The Company has paid all taxes and other assessments due. The Company has
not elected
pursuant to the Code, to be treated as a Subchapter S corporation or a collapsible
corporation pursuant to Section 1362(a) or Section 341(f) of the Code, nor has it
made any other elections pursuant to the Code (other than elections that relate
solely to methods of accounting, depreciation or amortization) that would have a
material effect on the business, properties or condition (financial or otherwise) of
the Company. None of the Company’s tax returns have ever been audited by any
governmental authorities. The Company has withheld or collected from each payment
made to its employees the amount of all taxes (including without limitation, federal
income taxes, Federal Insurance Contribution Act taxes and Federal Unemployment Tax
Act taxes) required to be withheld or collected therefrom, and has paid the same to
the proper tax receiving officers or authorized depositories.

          2.22 Insurance. The Company has in full force and effect fire and casualty
insurance policies, with extended coverage, sufficient in amount (subject to
reasonable deductibles) to allow it to replace any of its properties that might be
damaged or destroyed. The Company has obtained term life insurance payable to the
Company on the lives of Stephen Quake and Gajus Worthington in the amount of
$500,000. The Company has in full force and effect directors and officers liability
insurance, covering all of its directors, with aggregate coverage in the amount of
$2,000,000.

          2.23 Corporate Documents. The Restated Articles and Bylaws of the Company
are in the form made available to the Purchasers. The copy of the minute books of
the Company made available to the Purchasers’ counsel contains true and correct
minutes of all meetings of directors (including any committees thereof) and
shareholders and all actions by written consent taken without a meeting by the
directors and shareholders since December 18, 2003.

          2.24 Disclosure. The Company has fully provided each Purchaser with all the
information which such Purchaser has requested in connection with the purchase of the
Shares hereunder, as well as all information which the Company in its judgment
believes is reasonably necessary to enable such Purchaser to make a decision as to
whether to invest in the Company. Neither this Agreement with the Exhibits hereto,
nor any other statements, certificates or documents made or delivered in connection
herewith or therewith, contains any untrue statement of a material fact or omits to
state a material fact necessary to make the statements herein or therein not
misleading in light of the circumstances under which they were made. The financial
projections made available to the Purchasers (the “Projections”) were prepared in
good faith and based upon assumptions that the Company believes are reasonable, and
represent the Company’s good faith

-10-

 

estimate of its future plans and results; provided
however that the Company does not represent or warrant that it will achieve any of
the Projections.

          2.25 Offering. Subject in part to the truth and accuracy of each Purchaser’s representations set forth in
this Agreement, the offer, sale and issuance of the Shares as contemplated by this Agreement is
exempt from the registration requirements of the Securities Act of 1933, as amended (the
“Securities Act”), and from the registration or qualification requirements of applicable state
securities laws or blue sky laws, and neither the Company nor any authorized agent acting on its
behalf will take any action hereafter that would cause the loss of such exemption.

          2.26 Returns and Complaints. The Company has not received customer
complaints concerning alleged defects in the design of its products that, if true,
would have, individually or in the aggregate, a material adverse effect on its
business, properties, or financial condition.

     3. Representations and Warranties of the Purchasers. Each Purchaser, individually
and not jointly, hereby represents and warrants as of the Closing Date that:

          3.1 Experience. Such Purchaser is experienced in evaluating start-up
companies such as the Company, is able to evaluate and represent its own interests in
transactions such as the one contemplated by this Agreement, has such knowledge and
experience in financial and business matters such that Purchaser is capable of
evaluating the merits and risks of Purchaser’s prospective investment in the Company,
and has the ability to bear the economic risks of its investment.

          3.2 Investment. Such Purchaser is acquiring the Shares, and the Conversion
Shares, for investment for such Purchaser’s own account and not with the view to, or
for resale in connection with, any distribution thereof. Such Purchaser understands
that the Shares, and the Conversion Shares have not been 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 as expressed herein. Such Purchaser further represents that it
does not have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participation to any third person with respect to any of the
Shares, or the Conversion Shares, other than a transfer not involving a change of
beneficial ownership. Such Purchaser understands and acknowledges that the offering
of the Shares pursuant to this Agreement will not be registered under the Securities
Act on the ground that the sale provided for in this Agreement is exempt from the
registration requirements of the Securities Act.

          3.3 Rule 144. Such Purchaser acknowledges that the Shares and the Conversion
Shares must be held indefinitely unless subsequently registered under the Securities
Act or an exemption from such registration is available. Such Purchaser is aware of
the provisions of Rule 144 promulgated under the Securities Act which permit limited
resale of shares purchased in a private placement subject to the satisfaction of
certain conditions. Such Purchaser covenants that, in the absence of an effective
registration statement covering the stock in question, such Purchaser will sell,
transfer, or otherwise dispose of the Shares or the Conversion Shares only in a
manner consistent
with applicable securities laws and such Purchaser’s representations and covenants
set forth in this Section 3. In connection therewith, such Purchaser acknowledges
that the Company

-11-

 

will make a notation on its stock books regarding the restrictions
on transfers set forth in this Section 3 and will transfer securities on the books of
the Company only to the extent not inconsistent therewith.

          3.4 Legends. Purchaser understands and acknowledges that the certificate
evidencing its Shares and the Conversion Shares will be imprinted with legends in the
form set forth in Section 1.3 of the Investor Rights Agreement.

          3.5 No Public Market. Such 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 Shares or the Conversion
Shares.

          3.6 Access to Data. Such Purchaser has received and reviewed information
about the Company and has had an opportunity to discuss the Company’s business,
management and financial affairs with its management and to review the Company’s
facilities. The foregoing, however, does not limit or modify the representations and
warranties of the Company in Section 2 of this Agreement or the right of the
Purchasers to rely thereon.

          3.7 Authorization. This Agreement when executed and delivered by such
Purchaser will constitute a valid and legally binding obligation of the Purchaser,
enforceable against the Purchaser in accordance with its terms, subject to:
(i) judicial principles respecting election of remedies or limiting the availability
of specific performance, injunctive relief, and other equitable remedies;
(ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect generally relating to or affecting creditors’ rights; and
(iii) limitations on the enforceability of the indemnification provisions of the
Investor Rights Agreement.

          3.8 Accredited Investor. Such Purchaser acknowledges that it is an
“accredited investor” as defined in Rule 501 of Regulation D as promulgated by the
Securities and Exchange Commission under the Securities Act and shall submit to the
Company such further assurances of such status as may be reasonably requested by the
Company. The principal address of such Purchaser is as set forth on the Schedule of
Purchasers.

          3.9 Public Solicitation. Purchaser knows of no public solicitation or
advertisement of an offer in connection with the proposed issuance and sale of the
Shares.

          3.10 Tax Advisors. Purchaser has reviewed with Purchaser’s own tax advisors
the federal, state and local tax consequences of this investment, where applicable,
and the transactions contemplated by this Agreement. Each Purchaser is relying
solely on
such advisors and not on any statements or representations of the Company or any of
its agents and understands that each Purchaser (and not the Company) shall be
responsible for the Purchaser’s own tax liability that may arise as a result of this
investment or the transactions contemplated by this Agreement.

          3.11 Purchaser Counsel. Purchaser acknowledges that it has had the
opportunity to review this Agreement, the exhibits and the schedules attached hereto
and the transactions contemplated by this Agreement with Purchaser’s own legal
counsel. Each Purchaser is relying

-12-

 

solely on such counsel and not on any statements
or representations of the Company or any of its agents for legal advice with respect
to this investment or the transactions contemplated by this Agreement.

          3.12 Brokers or Finders. The Company has not incurred and will not incur,
directly or indirectly, as a result of any action taken by such Purchaser, any
liability for brokerage or finders’ fees or agents’ commissions or any similar
changes in connection with this Agreement.

          3.13 Non-United States Persons. If Purchaser is not a United States person, such Purchaser hereby represents that such
Purchaser is satisfied as to the full observance of the laws of such Purchaser’s jurisdiction in
connection with any invitation to subscribe for the Shares and the Conversion Shares or any use of
this Agreement, the Investor Rights Agreement and the Voting Agreement, including (i) the legal
requirements within such Purchaser’s jurisdiction for the purchase of Shares and the Conversion
Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental
or other consents that may need to be obtained and (iv) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, redemption, sale or transfer of such
securities. Such Purchaser’s subscription and payment for, and such Purchaser’s continued
beneficial ownership of, the Shares and the Conversion Shares will not violate any applicable
securities or other laws of such Purchaser’s jurisdiction.

     4. Conditions of Purchaser’s Obligations at Closing. The obligations of each
Purchaser under this Agreement are subject to the fulfillment on or before the Closing of each
of the following conditions, the waiver of which shall not be effective against any Purchaser
who does not consent in writing thereto:

          4.1 Representations and Warranties. The representations and warranties of
the Company contained in Section 2 shall be true 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 Closing.

          4.2 Performance. The Company shall have performed and complied with all
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 Compliance Certificate. The President of the Company shall deliver to
each Purchaser at the Closing a certificate stating that the conditions specified in
Sections 4.1 and 4.2 have been fulfilled and stating that as of the Closing there
shall have been no adverse change in the business, affairs, operations, properties,
assets or condition of the Company.

          4.4 Blue Sky. The Company shall have obtained all necessary permits and
qualifications, if any, or secured an exemption therefrom, required by any state or
country prior to the offer and sale of the Shares.

          4.5 Opinion of Company Counsel. Each Purchaser in the Initial Closing shall
have received from Wilson Sonsini Goodrich & Rosati, Professional Corporation,
counsel for the Company, an opinion, dated as of the Initial Closing, in the form
attached hereto as EXHIBIT E.

-13-

 

          4.6 Investor Rights Agreement. The Company and each Purchaser shall have
entered into the Investor Rights Agreement.

          4.7 Restated Articles. The Restated Articles shall have been accepted for
filing by the California Secretary of State and shall be in full force and effect as
of the Closing Date.

          4.8 Corporate Proceedings; Waivers and Consents. All corporate and other
proceedings to be taken and all waivers, consents and permits necessary or
appropriate for the consummation of the transactions contemplated by this Agreement
will have been taken or obtained.

     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 by that Purchaser:

          5.1 Representations and Warranties. The representations and warranties of
the Purchasers contained in Section 3 shall be true 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 Payment of Purchase Price. Each Purchaser shall have delivered the
purchase price against delivery of the Shares as set forth in Section 1.4 by the
Company to such Purchaser.

          5.3 Blue Sky. The Company shall have obtained all necessary permits and
qualifications, if any, or secured an exemption therefrom, required by any state or
country for the offer and sale of the Shares.

          5.4 Investor Rights Agreements. The Company and each Purchaser shall have
entered into the Investor Rights Agreement.

          5.5 Restated Articles . The Restated Articles shall have been accepted for
filing by the California Secretary of State and shall be in full force and effect as
of the Closing Date.

          5.6 Proceedings and Documents. All corporate and other proceedings in
connection with the transactions contemplated at the Closing hereby, and all
documents and instruments incident to these transactions, shall be reasonably
satisfactory in substance to the Company and its counsel.

     6. Miscellaneous.

          6.1 Governing Law; Jurisdiction. This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties hereto
shall be governed in all respects by the laws of the State of California, without
regard to any provisions thereof relating to conflicts of laws among different
jurisdictions. The parties hereto agree to submit to the exclusive jurisdiction of
the federal and state courts of San Mateo County, California with respect to the
breach or interpretation of this Agreement or the enforcement of any and all rights,
duties, liabilities, obligations, powers, and other relations between the parties
arising under this Agreement.

-14-

 

          6.2 Indemnification. The Company shall indemnify, defend and hold each
Purchaser harmless against all liability, loss or damage (collectively, “Losses” and
individually, a “Loss”) arising from any litigation, proceeding or dispute arising
from such Purchaser’s status as a shareholder of the Company other than Losses
arising from such Purchaser’s gross negligence or willful misconduct, provided that
such indemnification shall apply only to litigation, proceedings or disputes arising
prior to the Company’s Initial Public Offering (as defined in the Investor Rights
Agreement) and the Company’s obligation to indemnify any Purchaser shall be limited
in amount to the amount paid by such Purchaser for the purchase of such Purchaser’s
Shares as set forth on EXHIBIT A. The foregoing indemnity is not intended to
supercede or replace the indemnification obligations of the parties set forth in
Section 1.10 of the Investor Rights Agreement nor shall it be construed to limit any
other rights and remedies of the Purchasers under this Agreement or any other
indemnification to which such Purchaser may be entitled under any other agreement of
the Company. The foregoing indemnification rights are transferable only to
Affiliates (as defined in the Investor Rights Agreement) of a Purchaser.

          6.3 Survival. The representations, warranties, covenants and agreements made
herein shall survive any investigation made by any Purchaser or the Company and the
Closing of the transactions contemplated hereby; provided, however, that such
representations and warranties are only made as of the date of such execution and
delivery and as of such Closing.

          6.4 Successors and Assigns. Except as otherwise provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the parties hereto; provided,
however, that the rights of a Purchaser to purchase Shares at the Closing shall not
be assignable without the consent of the Company.

          6.5 Entire Agreement; Amendment. This Agreement and the other documents
delivered pursuant hereto constitute the full and entire understanding and agreement
among the parties with regard to the subjects hereof and thereof relating to the
purchase of the Shares. Neither this Agreement nor any term hereof may be amended,
waived, discharged or terminated other than by a written instrument signed by the
Company and the holder or holders of greater than fifty percent (50%) of the
then-outstanding Shares or the Conversion Shares. Notwithstanding the foregoing, any
additional purchaser pursuant to Section 1.2 may become a party to this Agreement by
executing and delivering an additional counterpart signature page to this Agreement
and such purchaser shall be deemed a Purchaser hereunder. The parties agree that the
Schedule of Purchasers attached hereto as Exhibit A shall be updated
automatically without any formal amendment to reflect the addition of any such
additional Purchaser. Any amendment or waiver effected in accordance with this
Section 6.5 shall be binding upon the Purchasers and each transferee of the Shares
(or the Common Stock issuable upon conversion thereof), each future holder of all
such securities, and the Company.

          6.6 Notices, Etc. All notices and other communications required or permitted
hereunder, shall be in writing and shall be personally delivered, sent by facsimile,
mailed by registered or certified mail, postage prepaid, return receipt requested, or
delivered by a nationally recognized overnight courier, addressed (a) if to a
Purchaser, at such Purchaser’s address or

-15-

 

facsimile number set forth on the Schedule
of Purchasers, or at such other address or facsimile number as such Purchaser shall
have furnished to the Company in writing, or (b) if to the Company, at its address or
facsimile number set forth on the signature page to this Agreement addressed to the
attention of the Corporate Secretary, or at such other address or facsimile number as
the Company shall have furnished to the Purchasers. Any such notice or communication
shall be deemed to have been received (A) in the case of personal delivery or
delivery by telecopier, on the date of such delivery, (B) in the case of a commercial
overnight courier, on the next business day after the date when sent and (C) in the
case of mailing, on the fifth business day following that on which the piece of mail
containing such communication is posted.

          6.7 Delays or Omissions. No delay or omission to exercise any right, power
or remedy accruing to any holder of any Shares upon any breach or default of the
Company under this Agreement shall impair any such right, power or remedy of such
holder, 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 holder of any breach or
default under this Agreement, or any waiver on the part of any holder 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 or as provided in this
Agreement. All remedies, either under this Agreement or by law or otherwise afforded
to any holder, shall be cumulative and not alternative.

          6.8 California 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 SUCH SECURITIES OR THE
PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH
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 SUCH
QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

          6.9 Finder’s Fee. The Company and each Purchaser shall each indemnify and
hold the other harmless from any liability for any commission or compensation in the
nature of a finder’s fee (including the costs, expenses and legal fees of defending
against such liability) for which the Company or the Purchasers, or any of their
respective partners, employees, or representatives, as the case may be, is
responsible.

          6.10 Expenses. The Company and each Purchaser shall bear its own expenses
and legal fees incurred on its behalf with respect to this Agreement and the
transactions contemplated hereby.

          6.11 Waiver of Conflict. Each of the Purchasers and the Company acknowledges
that Wilson Sonsini Goodrich & Rosati, Professional Corporation (“WSGR”) may have
represented and may currently represent Purchasers. In the course of such
representation, WSGR may have

-16-

 

come into possession of confidential information
relating to such Purchasers. Each of the Purchasers and the Company acknowledges
that WSGR is representing only the Company in this transaction. Pursuant to Rule
3-310 of the Rules of Professional Conduct promulgated by the State Bar of
California, an attorney must avoid representations in which the attorney has or had a
relationship with another party interested in the representation without the informed
written consent of all parties affected. By executing this Agreement, each of the
Purchasers
and the Company hereby waives any actual or potential conflict of interest that may
arise in this financing as a result of WSGR’s representation of such persons or
entities, WSGR’s possession of such confidential information and the participation by
WSGR’s affiliate in the financing. Each of the Purchasers and the Company represents
that it has had the opportunity to consult with independent counsel concerning the
giving of this waiver.

          6.12 Severability. In the event that any provision of this Agreement becomes
or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said provision;
provided that no such severability shall be effective if it materially changes the
economic benefit of this Agreement to any party.

          6.13 Counterparts; Facsimile. This Agreement may be executed in any number
of counterparts, each of which may be executed by less than all Purchasers, each of
which shall be enforceable against the parties actually executing such counterparts,
and all of which together shall constitute one instrument. This Agreement may be
executed by facsimile signature.

          6.14 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.

          6.15 Exculpation Among Purchasers. Each Purchaser acknowledges that it is
not relying upon any person, firm or corporation (including without limitation any
other Purchaser), other than the Company and its officers and directors (acting in
their capacity as representatives of the Company), in deciding to invest and in
making its investment in the Company. Each Purchaser agrees that no other Purchaser
nor the respective controlling persons, officers, directors, partners, agents or
employees of any other Purchaser shall be liable to such Purchaser for any losses
incurred by such Purchaser in connection with its investment in the Company.

          6.16 Like Treatment of Holders. The Company shall not directly or indirectly
pay or cause to be paid any consideration, whether by way of interest, fee, payment
for the redemption or exchange of Preferred Stock, or otherwise to any holder of
Preferred Stock for or as inducement to, any consent, waiver or amendment of any term
or provision of the Preferred Stock, this Agreement or the Investor Rights Agreement
unless equivalent consideration is offered on equivalent terms and conditions to all
Purchasers of Preferred Stock under this Agreement bound by such consent, waiver or
amendment.

          6.17 Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING (WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT.

-17-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	FLUIDIGM CORPORATION

 	 
	 	By:  	/s/ Gajus Worthington
 	 
	 	 	Gajus Worthington 	 
	 	 	President and Chief Executive Officer

7100 Shoreline Court

South San Francisco, CA 94080

FAX: (650) 871-7195 	 
	 

[FLUIDIGM CORPORATION SERIES E PREFERRED STOCK PURCHASE AGREEMENT]

 

 

	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 
	 	 	AllianceBernstein L.P.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Adam Spilka
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Adam Spilka
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	SVP, Counsel, Secretary
	 

	 	 	 	 

[FLUIDIGM CORPORATION SERIES E PREFERRED STOCK PURCHASE AGREEMENT]

 

 

EXHIBIT A

SCHEDULE OF PURCHASERS

	 	 	 	 	 	 	 	 	 
	Name and Address	 	Shares of Series E	 	Purchase Price
	AllianceBernstein L.P.
	 	 	1,250,000	 	 	$	5,000,000.00	 
	TOTALS
	 	 	1,250,000	 	 	$	5,000,000.00	 

 

 

FLUIDIGM CORPORATION

AMENDMENT NO. 1 TO

SERIES E PREFERRED STOCK PURCHASE AGREEMENT

     This Amendment No. 1 (the “Amendment”) to that certain Series E Preferred Stock Purchase
Agreement, dated as of June 13, 2006 (the “Purchase Agreement”), is made and entered into effective
as of December 22, 2006 (the “Effective Date”) by and among Fluidigm Corporation, a California
corporation (the “Company”), and the Purchasers named therein. Capitalized terms used in this
Amendment that are not otherwise defined herein shall have the respective meanings assigned to them
in the Purchase Agreement.

RECITALS

     WHEREAS, the Company previously sold and issued an aggregate of 1,250,000 shares of Series E
Preferred Stock of the Company (the “Series E Preferred”) pursuant to the terms of the Purchase
Agreement at the Initial Closing held on June 13, 2006;

     WHEREAS, the Company and the Purchaser now desire to amend the terms of the Purchase Agreement
to provide that the Company may sell and issue additional shares of Series E Preferred pursuant to
the Purchase Agreement, at one or more additional Subsequent Closings, provided that any such
additional Subsequent Closings shall take place no later than March 31, 2007.

     WHEREAS, pursuant to Section 6.5 of the Purchase Agreement, the terms of the Purchase
Agreement may be amended upon the written consent of the Company and the holder or holders of
greater than fifty percent (50%) of the outstanding Shares or the Conversion Shares; and

     WHEREAS, the Purchaser who has signed below holds greater than fifty percent (50%) of the
outstanding Shares purchased under the Purchase Agreement as of the Effective Date and consents to
the changes as set forth in this Amendment.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
mutually agree as follows:

AGREEMENT

     1. Amendment to Section 1.1. Section 1.1 (Authorization of the Shares) of the
Purchase Agreement is hereby amended and restated in its entirety as follows:

     “1.1 Authorization of the Shares. The Company will on or
before the Closing (as defined below) authorize the sale and issuance
pursuant to this Agreement of up to 6,318,333 shares (the “Shares”) of its

- 1 -

 

Series E Preferred Stock (the “Series E Preferred”), having the rights,
preferences and privileges as set forth in the Amended and Restated Articles
of Incorporation attached hereto as EXHIBIT B (the “Restated
Articles”).”

     2. Amendment to Section 1.2. Section 1.2 (Purchase and Sale of the Shares) of the
Purchase Agreement is hereby amended and restated in its entirety as follows:

     “1.2 Purchase and Sale of the Shares. Subject to the terms and
conditions hereof and in reliance upon the representations, warranties and
agreements contained herein, the Company will issue and sell to each
Purchaser, severally and not jointly, and each Purchaser will purchase from
the Company, severally and not jointly, at the Closing, the number of Shares
set forth opposite the Purchaser’s name on the Schedule of Purchasers, at a
purchase price of Four Dollars ($4.00) per Share. The Company shall be
entitled to sell any unpurchased Shares to any Purchaser or to a person who
is not a Purchaser and to amend the Schedule of Purchasers to include the
information relating to such sales, and such purchasers shall be considered
“Purchasers” and parties to this Agreement; provided that (i) such sales are
made pursuant to this Agreement or an agreement identical to this one except
for the Closing Date and exhibits, and (ii) such sales are completed on or
prior to March 31, 2007. The Company’s agreement with each Purchaser is a
separate agreement, and the sale of the Shares to each Purchaser is a
separate sale.”

     3. Governing Law. This Amendment shall be governed in all respects by the laws of the
State of California, without regard to any provisions thereof relating to conflicts of laws among
different jurisdictions.

     4. Purchase Agreement. Wherever necessary, all other terms of the Purchase Agreement
are hereby amended to be consistent with the terms of this Amendment. Except as specifically set
forth herein, the Purchase Agreement shall remain in full force and effect.

     5. Counterparts; Facsimile. This Amendment may be executed in any number of
counterparts, each of which shall be an original, and all of which together shall constitute one
instrument. Executed signatures transmitted via facsimile will be accepted and considered duly
executed.

     6. Effect of Execution of Amendment by Certain Purchaser. This Amendment, when
executed and delivered by the Company and a Purchaser purchasing shares of Series E Preferred at a
Subsequent Closing held on or after the date hereof, shall also constitute and shall be deemed a
counterpart signature page to the Purchase Agreement. Consequently, each undersigned Purchaser
purchasing shares of Series E Preferred at a Subsequent Closing held on or after the date hereof
acknowledges and agrees that he, she or it is bound by the terms and

- 2 -

 

conditions contained in the Purchase Agreement, as amended by this Amendment, with respect to
the purchase of such shares.

[Remainder of page intentionally left blank]

- 3 -

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

	 	 	 	 	 
	COMPANY:	FLUIDIGM CORPORATION

a California corporation

 	 
	 	By:  	/s/ Gajus Worthington
 	 
	 	 	Gajus Worthington, 	 
	 	 	President and Chief Executive Officer 	 
	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	Cross Creek Capital, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc. 

Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Karey Barker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	Cross Creek Capital Employees’ Fund, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Karey Barker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	WASATCH FUNDS, INC.

Wasatch Small Cap Growth Fund	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	Its:
	 	Investment Adviser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dan Thurber
 

Name: Dan Thurber
	 	 
	 

	 	 	 	Title: Vice President	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	SMALLCAP World Fund, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Capital Research and Management Company,	 	 
	 

	 	 	 	its, investment adviser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Downer
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Downer	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	AllianceBernstein Venture Fund I, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AllianceBernstein ESG Venture Management, L.P.,
its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AllianceBernstein Global Derivatives Corporation,
its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James D. Kiggen
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	James D. Kiggen	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 

	 	Versant
	 	Affiliates Fund 1-A, L.P.	 	 
	 

	 	Versant
	 	Affiliates Fund 1-B, L.P.	 	 
	 

	 	Versant
	 	Side Fund I, L.P.	 	 
	 

	 	Versant
	 	Venture Capital I, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Versant Ventures I, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Samuel D. Colella
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Samuel D. Colella	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	Lehman Brothers Healthcare Venture Capital L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Lehman Brothers HealthCare Venture Capital Associates L.P.,	 	 
	 

	 	 	 	its General Partner	 	 
	 

	 	By:
	 	LB I Group Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Odrich
 

	 	 
	 

	 	Name:
	 	Michael Odrich	 	 
	 

	 	Its:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers P.A. LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Odrich
 

	 	 
	 

	 	Name:
	 	Michael Odrich	 	 
	 

	 	Its:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers Partnership Account 

2000/2001, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LB I Group Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Odrich
 

	 	 
	 

	 	Name:
	 	Michael Odrich	 	 
	 

	 	Its:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers Offshore Partnership Account 2000/2001, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LB I Offshore Partners Group Ltd., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Odrich
 

	 	 
	 

	 	Name:
	 	Michael Odrich	 	 
	 

	 	Its:
	 	Senior Vice President	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	EuclidSR Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EuclidSR Associates, L.P.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elaine V. Jones
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Elaine V. Jones	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	EuclidSR Biotechnology Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EuclidSR Biotechnology Associates, L.P.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elaine V. Jones
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Elaine V. Jones	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	General Partner	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	Iinterwest Partners VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	InterWest Management Partners VII, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Sweeney
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Sweeney	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	As agent for the general partner	 	 
	 
	 	 	 	 	 	 
	 	 	Interwest Investors VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	InterWest Management Partners VII, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Sweeney
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Sweeney	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	As agent for the general partner	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	Lilly Bioventures, Eli Lilly & Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas W. Grein
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas W. Grein	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	Alloy Ventures 2005, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Alloy Ventures 2005, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tony DiBona
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Toni DiBona	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Member of Alloy Ventures
2005 LLC	 	 
	 
	 	 	 	 	 	 
	 	 	Alloy Ventures 2002, L.P.	 	 
	 	 	Alloy Partners 2002, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Alloy Ventures 2002, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tony DiBona
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Tony DiBona	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Member of Alloy
Ventures
2002, LLC, the general partner of Alloy
Partners 2002, L.P. and Alloy Ventures
2002, L.P.	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	SightLine Healthcare Fund III, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth E. Higgins
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Kenneth E. Higgins	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director of Sightline
Partners
LLC, general partner of its general partner	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASER:

	 	 	 	 	 
	 	 	 
	 	/s/ Bruce Burrows
 	 
	 	Bruce Burrows 	 
	 	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

	 	 	 	 	 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 
	 	 	 
	 	/s/ John M. Harland
 	 
	 	John M. Harland 	 
	 	 	 
	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	Ferguson/Egan Family Trust dated 6/28/99	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Rodney A. Ferguson
 

Rodney A. Ferguson
	 	 
	 

	 	Title:
	 	Trustee	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	Health Care Administration Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary L. Bowers
 

	 	 
	 

	 	Name:
	 	Gary L. Bowers	 	 
	 

	 	Title:
	 	President	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	The Condon Family Trust	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas J. Condon
 

	 	 
	 

	 	Name:
	 	Thomas J. Condon	 	 
	 

	 	Title:
	 	Trustee	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	In-Q-Tel, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott G. Yancey
 

	 	 
	 

	 	Name:
	 	Scott G. Yancey	 	 
	 

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	In-Q-Tel Employee Fund, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott G. Yancey	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Scott G. Yancey	 	 
	 

	 	Title:
	 	EVP of In-Q-Tel, Inc., the manager of the
fund	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 	 	 
	 	 	The V Foundation for Cancer Research	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Nicholas Valvano
 

Nicholas Valvano
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 
	 

	 	/s/ Fredrick H. Stern
 

Fredrick H. Stern
	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 
	 

	 	/s/ Alfred J. Mandel
 

Alfred J. Mandel
	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 
	 

	 	/s/ Pauline E. van Ysendoorn
 

Pauline E. van Ysendoorn
	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 
	 

	 	/s/ Rhett E. Brown
 

	 	 
	 

	 	Rhett E. Brown	 	 

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 1 to
Series E Preferred Stock Purchase Agreement as of the 30th day of March, 2007.

PURCHASER:

	 	 	 	 	 
	 	 	SMALLCAP World Fund, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	Capital Research and Management Company,
its investment adviser
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Timothy D. Amour
	 

	 	 	 	 
	 

	 	Name:
	 	Timothy D. Armour
	 

	 	Title:
	 	President

[Signature Page to Amendment No. 1 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

EXHIBIT A

SCHEDULE OF PURCHASERS

SERIES E PREFERED STOCK FINANCING

DECEMBER 22, 2006

	 	 	 	 	 	 	 	 	 
	 	 	Shares of Series E	 	 
	Name	 	Preferred Stock	 	Purchase Price
	CLIPPERBAY & CO.

SMALLCAP World Fund, Inc.
	 	 	1,875,000	 	 	$	7,500,000.00	 
	PACO c/o 80-16-200-1037662

Cross Creek Capital, L.P.
	 	 	569,074	 	 	$	2,276,296.00	 
	PACO c/o 80-16-200-1037670
	 	 	55,926	 	 	$	223,704.00	 
	CLEARMOON & CO.
	 	 	625,000	 	 	$	2,500,000.00	 
	ALLIANCEBERNSTEIN VENTURE FUND I, L.P.
	 	 	62,500	 	 	$	250,000.00	 
	ALLOY VENTURES 2005, L.P.
	 	 	80,625	 	 	$	322,500.00	 
	ALLOY VENTURES 2002, L.P.
	 	 	78,505	 	 	$	314,020.00	 
	ALLOY PARTNERS 2002, L.P.
	 	 	2,120	 	 	$	8,480.00	 
	INTERWEST INVESTORS VII, L.P.
	 	 	2,285	 	 	$	9,140.00	 
	INTERWEST PARTNERS VII, L.P.
	 	 	47,715	 	 	$	190,860.00	 
	EUCLIDSR BIOTECHNOLOGY PARTNERS, L.P.
	 	 	105,875	 	 	$	423,500.00	 
	EUCLIDSR PARTNERS, L.P.
	 	 	105,875	 	 	$	423,500.00	 
	VERSANT AFFLIATES FUND 1-A, L.P.
	 	 	5,000	 	 	$	20,000.00	 
	VERSANT AFFLIATES FUND 1-B, L.P.
	 	 	10,500	 	 	$	42,000.00	 

 

 

EXHIBIT A

SCHEDULE OF PURCHASERS

SERIES E PREFERED STOCK FINANCING

DECEMBER 22, 2006

	 	 	 	 	 	 	 	 	 
	 	 	Shares of Series E	 	 
	Name	 	Preferred Stock	 	Purchase Price
	VERSANT SIDE FUND I, L.P.
	 	 	4,500	 	 	$	18,000.00	 
	VERSANT VENTURE CAPITAL I, L.P.
	 	 	230,000	 	 	$	920,000.00	 
	LILLY BIO VENTURES, ELI LILLY AND COMPANY
	 	 	89,750	 	 	$	359,000.00	 
	SIGHTLINE HEALTHCARE FUND III, L.P.
	 	 	30,000	 	 	$	120,000.00	 
	BRUCE BURROWS
	 	 	144,750	 	 	$	579,000.00	 
	LEHMAN BROTHERS HEALTHCARE VENTURE CAPITAL, L.P.
	 	 	39,937	 	 	$	159,748.00	 
	LEHMAN BROTHERS OFFSHORE PARTNERSHIP ACCOUNT 2000/2001, L.P.
	 	 	8,932	 	 	$	35,728.00	 
	LEHMAN BROTHERS P.A., LLC
	 	 	76,440	 	 	$	305,760.00	 
	LEHMAN BROTHERS PARTNERSHIP ACCOUNT 2000/2001, L.P.
	 	 	34,440	 	 	$	137,760.00	 
	TOTALS
	 	 	4,284,749	 	 	$	17,138,996.00	 

 

 

EXHIBIT A

SCHEDULE OF PURCHASERS

SERIES E PREFERED STOCK FINANCING

MARCH 30, 2007

	 	 	 	 	 	 	 	 	 
	 	 	Shares of Series E	 	 
	Name	 	Preferred Stock	 	Purchase Price
	JOHN M. HARLAND
	 	 	5,000	 	 	$	20,000.00	 
	FERGUSON/EGAN FAMILY TRUST DATED 6/28/99
	 	 	15,000	 	 	$	60,000.00	 
	HEALTH CARE ADMINISTRATION COMPANY
	 	 	25,000	 	 	$	100,000.00	 
	THE CONDON FAMILY TRUST
	 	 	12,500	 	 	$	50,000.00	 
	IN-Q-TEL, INC.
	 	 	10,125	 	 	$	40,500.00	 
	IN-Q-TEL EMPLOYEE FUND, LLC
	 	 	3,375	 	 	$	13,500.00	 
	THE V FOUNDATION FOR CANCER RESEARCH
	 	 	6,250	 	 	$	25,000.00	 
	FREDRICK H. STERN
	 	 	37,500	 	 	$	150,000.00	 
	ALFRED J. MANDEL
	 	 	1,000	 	 	$	4,000.00	 
	PAULINE E. van YSENDOORN 
	 	 	2,500	 	 	$	10,000.00	 
	RHETT E. BROWN
	 	 	12,500	 	 	$	50,000.00	 
	CLIPPERBAY & CO.
	 	 	350,000	 	 	$	1,400,000.00	 
	TOTALS
	 	 	480,750	 	 	$	1,923,000.00	 

 

 

FLUIDIGM CORPORATION

AMENDMENT NO. 2 TO

SERIES E PREFERRED STOCK PURCHASE AGREEMENT

     This Amendment No. 2 (the “Amendment”) to that certain Series E Preferred Stock Purchase
Agreement, dated as of June 13, 2006, as amended December 22, 2006, by and among Fluidigm
Corporation, a California corporation (“Fluidigm California”) and the Purchasers named therein (the
“Purchase Agreement”), is made and entered into effective as of October 10, 2007 (the “Effective
Date”) by and among Fluidigm Corporation, a Delaware corporation (the “Company”), and the
Purchasers named herein. Capitalized terms used in this Amendment that are not otherwise defined
herein shall have the respective meanings assigned to them in the Purchase Agreement.

RECITALS

     WHEREAS, Fluidigm California previously sold and issued an aggregate of 1,250,000 shares of
Series E Preferred Stock (the “Series E Preferred”) pursuant to the terms of the Purchase Agreement
at the Initial Closing held on June 13, 2006 and an additional 6,015,499 shares of Series E
Preferred at Subsequent Closings held on December 22, 2006 and March 30, 2007;

     WHEREAS, on July 18, 2007, Fluidigm California was merged with and into the Company, with the
Company being the surviving corporation such that the Company succeeded to all of Fluidigm
California’s rights and obligations under the Purchase Agreement and all outstanding shares of
Series E Preferred of Fluidigm California were exchanged on a one for one basis for shares of
Series E Preferred of the Company;

     WHEREAS, the Company and the Purchasers now desire to amend the terms of the Purchase
Agreement to provide that the Company may sell and issue up to 7,375,000 additional shares of
Series E Preferred (the “Additional Shares”) pursuant to the Purchase Agreement, at one or more
additional Subsequent Closings, provided that any such additional Subsequent Closings shall take
place no later than December 31, 2007.

     WHEREAS, pursuant to Section 6.5 of the Purchase Agreement, the terms of the Purchase
Agreement may be amended upon the written consent of the Company and the holder or holders of
greater than fifty percent (50%) of the outstanding Shares or the Conversion Shares;

     WHEREAS, the Purchasers who have signed below hold greater than fifty percent (50%) of the
outstanding Shares purchased under the Purchase Agreement as of the Effective Date and consent to
the changes as set forth in this Amendment;

     WHEREAS, in connection with the execution of this Amendment, the Company is amending the
Amended and Restated Certificate of Incorporation of the Company to increase the

 

 

number of
authorized shares of capital stock of the Company to facilitate the sale of the Additional Shares.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
mutually agree as follows:

AGREEMENT

     1. Amendment to Section 1.1. Section 1.1 (Authorization of the Shares) of the
Purchase Agreement is hereby amended and restated in its entirety as follows:

     “1.1 Authorization of the Shares. The Company will on or
before the Closing (as defined below) authorize the sale and issuance
pursuant to this Agreement of up to 17,956,252 shares (the “Shares”) of its
Series E Preferred Stock (the “Series E Preferred”), having the rights,
preferences and privileges as set forth in the Amended and Restated
Certificate of Incorporation, as amended by Amendment No. 1 to Amended and
Restated Certificate of Incorporation and Amendment No. 2 to Amended and
Restated Certificate of Incorporation, as attached hereto as EXHIBITS
B-1 AND B-2, respectively (together for purposes of this
Agreement, the “Restated Certificate”).”

     2. Amendment to Section 1.2. Section 1.2 (Purchase and Sale of the Shares) of the
Purchase Agreement is hereby amended and restated in its entirety as follows:

     “1.2 Purchase and Sale of the Shares. Subject to the terms and
conditions hereof and in reliance upon the representations, warranties and
agreements contained herein, the Company will issue and sell to each
Purchaser, severally and not jointly, and each Purchaser will purchase from
the Company, severally and not jointly, at the applicable Closing, the
number of Shares set forth opposite the Purchaser’s name on the Schedule of
Purchasers, at a purchase price of Four Dollars ($4.00) per Share. The
Company shall be entitled to sell any unpurchased Shares to any Purchaser or
to a person who is not a Purchaser and to amend the Schedule of Purchasers
to include the information relating to such sales, and such purchasers shall
be considered “Purchasers” and parties to this Agreement; provided that (i)
such sales are made pursuant to this Agreement or an agreement identical to
this one except for the Closing Date and exhibits, and (ii) such sales are
completed on or prior to December 31, 2007. The Company’s agreement with
each Purchaser is a separate agreement, and the sale of the Shares to each
Purchaser is a separate sale.”

-2-

 

     3. Amendment to Section 2. Section 2 (Representations and Warranties of the Company)
of the Purchase Agreement is hereby amended to add the following sentence to the end of the
paragraph which reads in its entirety as follows:

     “At each Subsequent Closing, the Company shall provide an updated
Schedule of Exceptions and EXHIBIT C shall be concurrently amended
and restated for purposes of such Subsequent Closing.”

     4. Amendment to Section 2.4. Solely in connection with the sale of Additional Shares
pursuant to this Amendment, Section 2.4 (Capitalization) of the Purchase Agreement is hereby
amended and restated in its entirety as follows:

     “The authorized capital stock of the Company consists, or immediately
prior to the Closing will consist, of 85,232,144 shares of Common Stock
(“Common Stock”), of which 9,760,848 shares are issued and outstanding
immediately prior to the Closing and 57,961,085 shares of Preferred Stock
(“Preferred Stock”), 2,727,273 of which are designated Series A Preferred
Stock of which 2,727,273 are outstanding immediately prior to the Closing;
6,460,675 of which are designated Series B Preferred Stock of which
6,460,675 are outstanding immediately prior to the Closing; 16,854,624 of
which are designated Series C Preferred Stock, 16,364,832 of which are
issued and outstanding immediately prior to the Closing; and 13,962,261 of
which are designated Series D Preferred Stock, 13,353,333 of which are
issued and outstanding immediately prior to the Closing; and 17,956,252 of
which are designated Series E Preferred Stock, 8,969,836 of which are issued
and outstanding immediately prior to the Closing. All such issued and
outstanding shares have been duly authorized and validly issued in
compliance with applicable laws, and are fully paid and nonassessable.

     The Company has reserved: (i) 17,956,252 shares of Series E Preferred
for issuance hereunder and 17,956,252 shares of Common Stock for issuance
upon conversion of such shares of Series E Preferred; (ii) 13,353,333
shares of Common Stock for issuance upon conversion of the outstanding
shares of Series D Preferred; (iii) 408,928 shares of Series D Preferred for
issuance upon exercise of outstanding warrants and 408,928 shares of Common
Stock for issuance upon conversion of such Series D Preferred; (iv)
16,364,832 shares of Common Stock for issuance upon conversion of the
outstanding shares of Series C Preferred Stock; (v) 289,792shares of Series
C Preferred Stock for issuance upon exercise of outstanding warrants and
289,792 shares of Common Stock for issuance upon conversion of such Series C
Preferred Stock; (vi) 6,460,675 shares of Common Stock for issuance upon
conversion of the outstanding Series B Preferred Stock; (vii) 2,727,273
shares of Common Stock for issuance upon conversion of the outstanding
Series A Preferred Stock; and (viii) an aggregate of 12,800,000 shares of
Common Stock for issuance to

-3-

 

employees and consultants of the Company
pursuant to the Company’s 1999 Stock Option Plan, pursuant to which options
to purchase 7,247,691 shares are granted and outstanding and 1,518,223
shares are available for future grant. As of the date hereof and after
giving effect to the purchase of Shares hereunder, each share of each series
of the Company’s Preferred Stock is convertible into one share of the
Company’s Common Stock. Other than with respect to the shares reserved for
issuance in this paragraph, or as set forth in the Ancillary Agreements (as
defined below), there are no outstanding rights, options, warrants,
conversion rights, preemptive rights, rights of first refusal or similar
rights for the purchase or acquisition from the Company of any securities of
the Company. There are no outstanding obligations of the Company to
repurchase or redeem any of its securities.”

     5. Amendment to Section 2.16. Solely in connection with the sale of Additional Shares
pursuant to this Amendment, Section 2.16 (Financial Statements) of the Purchase Agreement is hereby
amended and restated in its entirety as follows:

     “The Company has made available to each Purchaser its audited balance
sheet dated as of December 31, 2004. The Company has also made available to
each Purchaser unaudited balance sheets dated December 31, 2005 and December
31, 2006 and the unaudited statements of operations for the fiscal years
then ended (collectively, the “Financial Statements”). The Financial
Statements are complete and correct in all material respects and have been
prepared in accordance with generally accepted accounting principles applied
on a consistent basis throughout the periods indicated. The Financial
Statements accurately set out and describe the financial condition and
operating results of the Company as of the date, and during the periods,
indicated therein. Except as set forth in the Financial Statements, the
Company has no material liabilities, contingent or otherwise, other than (i)
liabilities incurred in the ordinary course of business subsequent to
December 31, 2006 and (ii) obligations under contracts and commitments
incurred in the ordinary course of business and not required under generally
accepted accounting principles to be reflected in the Financial Statements,
which, in both cases, individually or in the aggregate are not material to
the financial condition or operating results of the Company.”

     6. Deletion of Sections 6.9 and 6.11. Solely in connection with the sale of
Additional Shares pursuant to this Amendment, the Purchase Agreement is hereby amended to delete
Section 6.9 (Finder’s Fee) and Section 6.11 (Waiver of Conflict), each in its entirety.

-4-

 

     7. Amendment to Section 6.10. Solely in connection with the sale of Additional Shares
pursuant to this Amendment, Section 6.10 of the Purchase Agreement is hereby amended and restated
in its entirety to read as follows:

     “6.10 Expenses. The Company and each Purchaser shall bear its
own expenses and legal fees incurred on its behalf with respect to this
Agreement and the transactions contemplated hereby, provided, however, that
if a Closing is effected, the Company shall reimburse the reasonable
documented fees of one counsel for the Purchasers, such amount not to exceed
$25,000, by wire transfer at such Closing.”

     8. Addition of Section 6.17. The Purchase Agreement is hereby amended to add the
following Section 6.17 which reads in its entirety as follows:

     “6.17 Reincorporation. Each Purchaser hereunder acknowledges
that the Company completed a reincorporation into the State of Delaware on
July 18, 2007 and each Purchaser hereby consents to the assignment of this
Agreement to Fluidigm Corporation, a Delaware corporation effective as of
July 18, 2007.”

     9. Restated Certificate. All references in the Purchase Agreement to the term
“Restated Articles” are hereby deleted and replaced with the term “Restated Certificate.”

     10. Governing Law. This Amendment shall be governed in all respects by the laws of
the State of California, without regard to any provisions thereof relating to conflicts of laws
among different jurisdictions.

     11. Purchase Agreement. Wherever necessary, all other terms of the Purchase Agreement
are hereby amended to be consistent with the terms of this Amendment. Except as specifically set
forth herein, the Purchase Agreement shall remain in full force and effect.

     12. Counterparts; Facsimile. This Amendment may be executed in any number of
counterparts, each of which shall be an original, and all of which together shall constitute one
instrument. Executed signatures transmitted via facsimile will be accepted and considered duly
executed.

     13. Effect of Execution of Amendment by Certain Purchasers. This Amendment, when
executed and delivered by the Company and a Purchaser purchasing shares of Series E Preferred at a
Subsequent Closing held on or after the date hereof, shall also constitute and shall be deemed a
counterpart signature page to the Purchase Agreement. Consequently, each undersigned Purchaser
purchasing shares of Series E Preferred at a Subsequent Closing held on or after the date hereof
acknowledges and agrees that he, she or it is bound by the terms and conditions contained in the
Purchase Agreement, as amended by this Amendment, with respect to the purchase of such shares.

[Remainder of page intentionally left blank]

-5-

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2
to Series E Preferred Stock Purchase Agreement as of the Effective Date.

COMPANY:

	 	 	 	 	 
	 	FLUIDIGM CORPORATION

a Delaware corporation

 	 
	 	By:  	/s/ Gajus Worthington
 	 
	 	 	Gajus Worthington, 	 
	 	 	President and Chief Executive Officer 	 
	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Fidelity Contrafund: 	 	 
	 	 	Fidelity Advisor New Insights Fund	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary Ryan
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Gary Ryan	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Fidelity Contrafund: Fidelity Contrafund	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary Ryan	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Gary Ryan	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Variable Insurance Products Fund II:	 	 
	 	 	Contrafund Portfolio	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary Ryan	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Gary Ryan	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Leerink Swann Holdings, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeffrey A. Leerink
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey A. Leerink	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Leerink Swann Holdings, LLC 	 	 
	 	 	Co-Investment Fund, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donald D. Notman, Jr.	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Donald D. Notman, Jr.	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	PURCHASERS:	 	Cross Creek Capital, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Karey Barker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 
	 	 	Cross Creek Capital Employees’ Fund, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Karey Barker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	 Wasatch Funds, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dan Thurber
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Dan Thurber	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	SMALLCAP World Fund, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Capital Research and Management Company,	 	 
	 

	 	 	 	its, investment adviser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Downer
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Downer	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	AllianceBernstein Venture Fund I, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AllianceBernstein ESG Venture 

Management, L.P., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AllianceBernstein Global
Derivatives 

Corporation, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James D. Kiggen
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	James D. Kiggen	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Versant Affiliates Fund 1-A, L.P.	 	 
	 	 	Versant Affiliates Fund1-B, L.P.	 	 
	 	 	Versant Side Fund I, L.P.	 	 
	 	 	Versant Venture Capital I, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Versant Ventures I, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Samuel D. Colella
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Samuel D. Colella	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Lehman
Brothers Healthcare Venture Capital 
L.P.	 	
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Lehman Brothers HealthCare Venture Capital	 	 
	 

	 	 	 	Associates L.P.,	 	 
	 

	 	 	 	its General Partner	 	 
	 

	 	By:
	 	LB I Group Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Steven Berkenfeld
 

Steven Berkenfeld
	 	 
	 

	 	Its:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers P.A. LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven Berkenfeld	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Steven Berkenfeld	 	 
	 

	 	Its:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers Partnership Account 2000/2001,

L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LB I Group Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven Berkenfeld	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Steven Berkenfeld	 	 
	 

	 	Its:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman
Brothers Offshore Partnership Account
2000/2001, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LB I Offshore Partners Group Ltd., its General	 	 
	 

	 	 	 	Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven Berkenfeld	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Steven Berkenfeld	 	 
	 

	 	Its:
	 	Senior Vice President	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	EuclidSR Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EuclidSR Associates, L.P.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elaine V. Jones
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Elaine V. Jones	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	 General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	EuclidSR Biotechnology Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EuclidSR Biotechnology Associates, L.P.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elaine V. Jones	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Elaine V. Jones	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	 General Partner	 	 
	 
	 	 	 	 	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Interwest Partners VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	InterWest Management Partners VII,
LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Sweeney
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Sweeney	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	As agent for the general partner	 	 
	 
	 	 	 	 	 	 
	 	 	Interwest Investors VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	InterWest Management Partners VII,
LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Sweeney	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Sweeney	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	As agent for the general partner	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Lilly Bioventures, Eli Lilly & Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Darren J. Carroll
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Darren J. Carroll	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Director	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Bruce Burrows
 

Bruce Burrows
	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Biomedical Sciences Investment Fund Pte Ltd	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Chu Swee Yeok
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Chu Swee Yeok	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	Singapore Bio-Innovations Pte Ltd	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sim Sze Kuan	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Sim Sze Kuan	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Director	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 2 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Invus, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Invus Advisors LLC	 	 
	 

	 	 	 	General Partner of Invus LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Aflalo Guimaraes
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Aflalo Guimaraes	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature Page to Amendment No. 2 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

EXHIBIT A

SCHEDULE OF PURCHASERS

SERIES E PREFERED STOCK FINANCING

OCTOBER 10, 2007

	 	 	 	 	 	 	 	 	 
	 	 	Shares of Series E	 	 	 	 
	Name	 	Preferred Stock	 	 	Purchase Price	 
	FIDELITY CONTRAFUND:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	FIDELITY ADVISOR NEW INSIGHTS FUND
	 	 	481,170	 	 	$	1,924,679.00	 
	 
	 	 	 	 	 	 	 	 
	FIDELITY CONTRAFUND: FIDELITY CONTRAFUND
	 	 	4,389,865	 	 	$	17,559,461.00	 
	 
	 	 	 	 	 	 	 	 
	VARIABLE INSURANCE PRODUCTS FUND II:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CONTRAFUND PORTFOLIO
	 	 	1,378,965	 	 	$	5,515,860.00	 
	 
	 	 	 	 	 	 	 	 
	LEERICK SWANN HOLDINGS, LLC
	 	 	62,500	 	 	$	250,000.00	 
	 
	 	 	 	 	 	 	 	 
	LEERICK SWANN CO-INVESTMENT FUND, LLC
	 	 	78,750	 	 	$	315,000.00	 
	 
	 	 	 	 	 	 	 	 
	TOTALS
	 	 	6,391,250	 	 	$	25,565,000.00	 

 

 

FLUIDIGM CORPORATION

AMENDMENT NO. 3 TO

SERIES E PREFERRED STOCK PURCHASE AGREEMENT

     This Amendment No. 3 (the “Amendment”) to that certain Series E Preferred Stock Purchase
Agreement, dated as of June 13, 2006, as amended December 22, 2006 and further amended October 10,
2007, by and among Fluidigm Corporation, a California corporation (“Fluidigm California”) and the
Purchasers named therein (the “Purchase Agreement”), is made and entered into effective as of
October 26, 2007 (the “Effective Date”) by and among Fluidigm Corporation, a Delaware corporation
(the “Company”), and the Purchasers named herein. Capitalized terms used in this Amendment that
are not otherwise defined herein shall have the respective meanings assigned to them in the
Purchase Agreement.

RECITALS

     WHEREAS, Fluidigm California previously sold and issued an aggregate of 1,250,000 shares of
Series E Preferred Stock (the “Series E Preferred”) pursuant to the terms of the Purchase Agreement
at the Initial Closing held on June 13, 2006, an additional 4,284,749 shares of Series E Preferred
at a Subsequent Closing held on December 22, 2006, an additional 480,750 shares of Series E
Preferred at a Subsequent Closing held on March 30, 2007, and an additional 6,391,250 shares of
Series E Preferred at a Subsequent Closing held on October 10, 2007;

     WHEREAS, on July 18, 2007, Fluidigm California was merged with and into the Company, with the
Company being the surviving corporation such that the Company succeeded to all of Fluidigm
California’s rights and obligations under the Purchase Agreement and all outstanding shares of
Series E Preferred of Fluidigm California were exchanged on a one for one basis for shares of
Series E Preferred of the Company;

     WHEREAS, the Company and the Purchasers now desire to amend the terms of the Purchase
Agreement to provide that the Company may sell and issue up to 2,153,695 additional shares of
Series E Preferred (the “Additional Shares”) pursuant to the Purchase Agreement, at one or more
additional Subsequent Closings, provided that any such additional Subsequent Closings shall take
place no later than December 31, 2007.

     WHEREAS, pursuant to Section 6.5 of the Purchase Agreement, the terms of the Purchase
Agreement may be amended upon the written consent of the Company and the holder or holders of
greater than fifty percent (50%) of the outstanding Shares or the Conversion Shares;

     WHEREAS, the Purchasers who have signed below hold greater than fifty percent (50%) of the
outstanding Shares purchased under the Purchase Agreement as of the Effective Date and consent to
the changes as set forth in this Amendment;

 

 

     WHEREAS, in connection with the execution of this Amendment, the Company is amending the
Amended and Restated Certificate of Incorporation of the Company to increase the number of
authorized shares of capital stock of the Company to facilitate the sale of the Additional Shares.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
mutually agree as follows:

AGREEMENT

     1. Amendment to Section 1.1. Section 1.1 (Authorization of the Shares) of the
Purchase Agreement is hereby amended and restated in its entirety as follows:

     “1.1 Authorization of the Shares. The Company will on or
before the Closing (as defined below) authorize the sale and issuance
pursuant to this Agreement of up to 18,498,531 shares (the “Shares”) of its
Series E Preferred Stock (the “Series E Preferred”), having the rights,
preferences and privileges as set forth in the Amended and Restated
Certificate of Incorporation, as amended by a Certificate of Amendment to
Amended and Restated Certificate of Incorporation dated October 10, 2007 and
a Certificate of Amendment to Amended and Restated Certificate of
Incorporation dated October 26, 2007, as attached hereto as EXHIBITS
B-1 AND B-2, respectively (together for purposes of this
Agreement, the “Restated Certificate”).”

     2. Amendment to Section 2.4. Solely in connection with the sale of Additional Shares
pursuant to this Amendment, Section 2.4 (Capitalization) of the Purchase Agreement is hereby
amended and restated in its entirety as follows:

     “The authorized capital stock of the Company consists, or immediately
prior to the Closing will consist, of 87,385,839 shares of Common Stock
(“Common Stock”), of which 9,760,848 shares are issued and outstanding
immediately prior to the Closing and 60,114,780 shares of Preferred Stock
(“Preferred Stock”), 2,727,273 of which are designated Series A Preferred
Stock of which 2,727,273 are outstanding immediately prior to the Closing;
6,460,675 of which are designated Series B Preferred Stock of which
6,460,675 are outstanding immediately prior to the Closing; 16,854,624 of
which are designated Series C Preferred Stock, 16,364,832 of which are
issued and outstanding immediately prior to the Closing; and 13,962,261 of
which are designated Series D Preferred Stock, 13,353,333 of which are
issued and outstanding immediately prior to the Closing; and 20,109,947 of
which are designated Series E Preferred Stock, 15,361,086 of which are
issued and outstanding immediately prior to the Closing. All such issued
and outstanding shares have been duly

- 2 -

 

authorized and validly issued in compliance with applicable laws, and
are fully paid and nonassessable.

     The Company has reserved: (i) 18,498,531 shares of Series E Preferred
for issuance hereunder and 20,109,947 shares of Common Stock for issuance
upon conversion of all shares of Series E Preferred; (ii)  13,353,333 shares
of Common Stock for issuance upon conversion of the outstanding shares of
Series D Preferred; (iii) 408,928 shares of Series D Preferred for issuance
upon exercise of outstanding warrants and 408,928 shares of Common Stock for
issuance upon conversion of such Series D Preferred; (iv) 16,364,832 shares
of Common Stock for issuance upon conversion of the outstanding shares of
Series C Preferred Stock; (v) 289,792 shares of Series C Preferred Stock for
issuance upon exercise of outstanding warrants and 289,792 shares of Common
Stock for issuance upon conversion of such Series C Preferred Stock;
(vi) 6,460,675 shares of Common Stock for issuance upon conversion of the
outstanding Series B Preferred Stock; (vii) 2,727,273 shares of Common Stock
for issuance upon conversion of the outstanding Series A Preferred Stock;
and (viii) an aggregate of 12,800,000 shares of Common Stock for issuance to
employees and consultants of the Company pursuant to the Company’s 1999
Stock Option Plan, pursuant to which options to purchase 7,247,691 shares
are granted and outstanding and 1,518,223 shares are available for future
grant. As of the date hereof and after giving effect to the purchase of
Shares hereunder, each share of each series of the Company’s Preferred Stock
is convertible into one share of the Company’s Common Stock. Other than
with respect to the shares reserved for issuance in this paragraph, or as
set forth in the Ancillary Agreements (as defined below), there are no
outstanding rights, options, warrants, conversion rights, preemptive rights,
rights of first refusal or similar rights for the purchase or acquisition
from the Company of any securities of the Company. There are no outstanding
obligations of the Company to repurchase or redeem any of its securities.”

     3. Amendment to Section 2.16. Solely in connection with the sale of Additional Shares
pursuant to this Amendment, Section 2.16 (Financial Statements) of the Purchase Agreement is hereby
amended and restated in its entirety as follows:

     “The Company has made available to each Purchaser its audited balance
sheet dated as of December 31, 2004. The Company has also made available to
each Purchaser unaudited balance sheets dated December 31, 2005 and December
31, 2006 and the unaudited statements of operations for the fiscal years
then ended (collectively, the “Financial Statements”). The Financial
Statements are complete and correct in all material respects and have been
prepared in accordance with generally

- 3 -

 

accepted accounting principles applied on a consistent basis throughout
the periods indicated. The Financial Statements accurately set out and
describe the financial condition and operating results of the Company as of
the date, and during the periods, indicated therein. Except as set forth in
the Financial Statements, the Company has no material liabilities,
contingent or otherwise, other than (i) liabilities incurred in the ordinary
course of business subsequent to December 31, 2006 and (ii) obligations
under contracts and commitments incurred in the ordinary course of business
and not required under generally accepted accounting principles to be
reflected in the Financial Statements, which, in both cases, individually or
in the aggregate are not material to the financial condition or operating
results of the Company.”

     4. Governing Law. This Amendment shall be governed in all respects by the laws of the
State of California, without regard to any provisions thereof relating to conflicts of laws among
different jurisdictions.

     5. Purchase Agreement. Wherever necessary, all other terms of the Purchase Agreement
are hereby amended to be consistent with the terms of this Amendment. Except as specifically set
forth herein, the Purchase Agreement shall remain in full force and effect.

     6. Counterparts; Facsimile. This Amendment may be executed in any number of
counterparts, each of which shall be an original, and all of which together shall constitute one
instrument. Executed signatures transmitted via facsimile will be accepted and considered duly
executed.

     7. Effect of Execution of Amendment by Certain Purchasers. This Amendment, when
executed and delivered by the Company and a Purchaser purchasing shares of Series E Preferred at a
Subsequent Closing held on or after the date hereof, shall also constitute and shall be deemed a
counterpart signature page to the Purchase Agreement. Consequently, each undersigned Purchaser
purchasing shares of Series E Preferred at a Subsequent Closing held on or after the date hereof
acknowledges and agrees that he, she or it is bound by the terms and conditions contained in the
Purchase Agreement, as amended by this Amendment, with respect to the purchase of such shares.

[Remainder of page intentionally left blank]

- 4 -

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3
to Series E Preferred Stock Purchase Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	COMPANY:	 	FLUIDIGM CORPORATION
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gajus Worthington	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gajus Worthington,	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Fidelity Contrafund: 
	 	 	Fidelity Advisor New Insights Fund
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Lydecker
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter Lydecker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Fidelity Contrafund: Fidelity Contrafund
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Lydecker	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter Lydecker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Variable Insurance Products Fund II:
	 	 	Contrafund Portfolio
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Lydecker	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter Lydecker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Leerink Swann Holdings, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeffrey Leerink	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey Leerink	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Chairman	 	 
	 
	 	 	 	 	 	 
	 	 	Leerink Swann Holdings, LLC 
	 	 	Co-Investment Fund, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donald D. Notman, Jr.	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Donald D. Notman, Jr.	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	PURCHASERS:	 	Cross Creek Capital, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Karey Barker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Cross Creek Capital Employees’ Fund, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital GP, L.P.	 	 
	 

	 	 	 	Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Cross Creek Capital, LLC

Its Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karey Barker	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Karey Barker	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Wasatch Funds, Inc.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wasatch Advisors, Inc.	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Venice Edwards
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Venice Edwards	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Secretary	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	SMALLCAP World Fund, Inc.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Capital Research and Management Company,	 	 
	 

	 	 	 	its, investment adviser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul Haaga
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Paul Haaga	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	AllianceBernstein Venture Fund I, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AllianceBernstein ESG Venture	 	 
	 

	 	 	 	Management, L.P., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AllianceBernstein Global Derivatives	 	 
	 

	 	 	 	Corporation, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James D. Kiggen
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	James D. Kiggen	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Versant Affiliates Fund 1-A, L.P.
	 	 	Versant Affiliates Fund1-B, L.P.
	 	 	Versant Side Fund I, L.P.
	 	 	Versant Venture Capital I, L.P.
	 

	 	By:
	 	Versant Ventures I, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Samuel D. Colella
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Samuel D. Colella	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Lehman Brothers Healthcare Venture Capital
	 	 	L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Lehman Brothers HealthCare Venture Capital	 	 
	 

	 	 	 	Associates L.P.,	 	 
	 

	 	 	 	its General Partner	 	 
	 

	 	By:
	 	LB I Group Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Ashvin Rao
 

Ashvin Rao
	 	 
	 

	 	Its:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers P.A. LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Deborah Nordell	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Deborah Nordell	 	 
	 

	 	Its:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers Partnership Account 2000/2001,
	 	 	L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LB I Group Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ashvin Rao	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Ashvin Rao	 	 
	 

	 	Its:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Lehman Brothers Offshore Partnership Account
	 	 	2000/2001, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LB I Offshore Partners Group Ltd., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ashvin Rao	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Ashvin Rao	 	 
	 

	 	Its:
	 	Vice President	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	EuclidSR Partners, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EuclidSR Associates, L.P.	 	 
	 

	 	its
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elaine V. Jones
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Elaine V. Jones	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	EuclidSR Biotechnology Partners, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	EuclidSR Biotechnology Associates, L.P.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elaine V. Jones	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Elaine V. Jones	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	General Partner	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Interwest Partners VII, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	InterWest Management Partners VII, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Sweeney
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Sweeney	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	As agent for the general partner	 	 
	 
	 	 	 	 	 	 
	 	 	Interwest Investors VII, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	InterWest Management Partners VII, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Sweeney	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael Sweeney	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	As agent for the general partner	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Lilly Bioventures, Eli Lilly & Company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Darren J. Carroll
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Darren J. Carroll	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Director	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Alloy Ventures 2005, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Alloy Ventures 2005, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tony DiBona	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Toni DiBona	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Member of Alloy Ventures	 	 
	 

	 	 	 	2005 LLC	 	 
	 
	 	 	 	 	 	 
	 	 	Alloy Ventures 2002, L.P.
	 	 	Alloy Partners 2002, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Alloy Ventures 2002, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tony DiBona	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Tony DiBona	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Member of Alloy Ventures	 	 
	 

	 	 	 	2002, LLC, the general partner of Alloy	 	 
	 

	 	 	 	Partners 2002, L.P. and Alloy Ventures	 	 
	 

	 	 	 	2002, L.P.	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 
	 

	 	/s/ Bruce Burrows
 

Bruce Burrows
	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	SightLine Healthcare Fund III, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Maureen Harder
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Maureen Harder	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Biomedical Sciences Investment Fund Pte Ltd
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Chu Swee Yeok
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Chu Swee Yeok	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	Singapore Bio-Innovations Pte Ltd
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sim Sze Kuan	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Sim Sze Kuan	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Director	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3 to
Series E Preferred Stock Purchase Agreement as of the Effective Date.

PURCHASERS:

	 	 	 	 	 	 	 
	 	 	Invus, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Invus Advisors LLC	 	 
	 

	 	 	 	General Partner of Invus LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Aflalo Guimaraes
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Aflalo Guimaraes	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

EXHIBIT A

SCHEDULE OF PURCHASERS

SERIES E PREFERRED STOCK FINANCING – SECOND EXTENDED CLOSING

OCTOBER 26, 2007

	 	 	 	 	 	 	 	 	 
	 	 	Shares of Series E	 	 
	Name	 	Preferred Stock	 	Purchase Price
	CLIPPERBAY & CO.
	 	 	 	 	 	 	 	 
	SMALLCAP World Fund, Inc.
	 	 	2,153,695	 	 	$	8,614,780.00	 
	 
	 	 	 	 	 	 	 	 
	TOTALS
	 	 	2,153,695	 	 	$	8,614,780.00	 

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3
to Series E Preferred Stock Purchase Agreement as of the 31st day of December, 2007.

	 	 	 	 	 	 	 
	COMPANY:	 	FLUIDIGM CORPORATION
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gajus Worthington
 

Gajus Worthington,
	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment No. 3
to Series E Preferred Stock Purchase Agreement as of the 31st day of December, 2007.

PURCHASER:

	 	 	 	 	 
	 

	 	/s/ Bruce Burrows
 

Bruce Burrows
	 	 

[Signature
Page to Amendment No. 3 to Fluidigm Corporation Series E Preferred Stock Purchase Agreement]

 

 

EXHIBIT A

SCHEDULE OF PURCHASER

SERIES E PREFERRED STOCK FINANCING – THIRD EXTENDED CLOSING

DECEMBER 31, 2007

	 	 	 	 	 	 	 	 	 
	 	 	Shares of Series E	 	 
	Name	 	Preferred Stock	 	Purchase Price
	BRUCE BURROWS
	 	 	250,000	 	 	$	1,000,000.00	 
	 
	 	 	 	 	 	 	 	 
	TOTALS
	 	 	250,000	 	 	$	1,000,000.00	 

 

 

EXHIBIT
B

FORM
OF AMENDED AND RESTATED ARTICLES OF INCORPORATION

 

FORM OF AMENDED AND RESTATED

ARTICLES OF INCORPORATION OF

FLUIDIGM CORPORATION

     Gajus V. Worthington and William Smith each certify that:

     1. They are the President and Secretary, respectively, of Fluidigm Corporation, a California
corporation (the “Corporation”).

     2. The Amended and Restated Articles of Incorporation of the Corporation are hereby amended
and restated in full to read as set forth in EXHIBIT A attached hereto, which is
incorporated by reference as if fully set forth herein.

     3. Said Amended and Restated Articles of Incorporation have been duly approved by the
Corporation’s Board of Directors.

     4. Said Amended and Restated Articles of Incorporation have been duly approved by the required
vote of shareholders in accordance with Sections 902 and 903 of the Corporations Code. The total
number of outstanding shares of the corporation is 9,274,356 shares of Common Stock, 2,727,273
shares of Series A Preferred Stock, 6,460,675 shares of Series B Preferred Stock, 16,364,832 shares
of Series C Preferred Stock, and 11,714,048 shares of Series D Preferred Stock. The number of
shares voting in favor of the amendment equaled or exceeded the vote required. The percentage vote
required was more than 50% of the outstanding Common Stock, voting as a single class; more than 50%
of the outstanding Series A Preferred Stock, voting as a single class; at least 662/3% of the
outstanding Series B Preferred Stock, voting as a single class; at least 662/3% of the outstanding
Series C Preferred Stock, voting as a single class; at least 60% of the outstanding Series D
Preferred Stock, voting as a single class; more than 662/3% of the outstanding Preferred Stock,
voting as a single class; and more than 50% of the outstanding Common Stock and Preferred Stock,
voting together as a single class.

     I further declare under penalty of perjury that the matters set forth in the foregoing
certificate are true and correct of my own knowledge.

     Executed at Palo Alto, California, this ___ day of June 2006.

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Gajus V. Worthington 	 
	 	 	President 	 
	 	 	 
	 	  	 	 
	 	 	William M. Smith 	 
	 	 	Secretary 	 
	 

 

 

Exhibit A

FORM OF AMENDED AND RESTATED

ARTICLES OF INCORPORATION OF

FLUIDIGM CORPORATION

ARTICLE I

     The name of the corporation is Fluidigm Corporation.

ARTICLE II

     The purpose of this corporation is to engage in any lawful act or activity for which a
corporation may be organized under the General Corporation Law of California other than the banking
business, the trust company business or the practice of a profession permitted to be incorporated
under the California Corporations Code.

ARTICLE III

     The total number of shares of stock that the corporation shall have authority to issue is One
Hundred Twenty-Nine Million Five Hundred Forty-Five Thousand Ninety-Two (129,545,092) consisting of
Seventy-Seven Million Eight Hundred Fifty-Seven Thousand One Hundred Forty-Four (77,857,144) shares
of Common Stock, $0.001 par value per share, and Fifty-One Million Six Hundred Eighty-Seven
Thousand Nine Hundred Forty-Eight (51,687,948) shares of Preferred Stock, $0.001 par value per
share. The first series of Preferred Stock shall be designated “Series A Preferred Stock” and
shall consist of Two Million Seven Hundred Twenty—Seven Thousand Two Hundred Seventy—Three
(2,727,273) shares. The second series of Preferred Stock shall be designated “Series B Preferred
Stock” and shall consist of Six Million Four Hundred Sixty Thousand Six Hundred Seventy-Five
(6,460,675) shares. The third series of Preferred Stock shall be designated “Series C Preferred
Stock” and shall consist of Seventeen Million (17,000,000) shares. The fourth series of Preferred
Stock shall be designated “Series D Preferred Stock” and shall consist of Fifteen Million Five
Hundred Thousand (15,500,000) shares. The fifth series of Preferred Stock shall be designated
“Series E Preferred Stock” and shall consist of Ten Million (10,000,000) shares.

ARTICLE IV

     The terms and provisions of the Common Stock and Preferred Stock are as follows:

     1. Definitions. For purposes of this Article IV, the following definitions shall
apply:

          (a) “Conversion Price” shall mean $1.10 per share for the Series A Preferred Stock,
$1.78 per share for the Series B Preferred Stock, $2.58 per share for the Series C Preferred

 

 

Stock, $2.80 per share for the Series D Preferred Stock, and $4.00 for the Series E Preferred
Stock (each subject to adjustment from time to time as set forth elsewhere herein).

          (b) “Convertible Securities” shall mean any evidences of indebtedness, shares or other
securities (other than shares of Common Stock) convertible into or exchangeable for Common Stock.

          (c) “Corporation” shall mean Fluidigm Corporation.

          (d) “Dividend Rate” shall mean an annual rate of $0.11 per share for the Series A
Preferred Stock, an annual rate of $0.18 for the Series B Preferred Stock, an annual rate of $0.26
per share for the Series C Preferred Stock, an annual rate of $0.30 per share for the Series D
Preferred Stock, and an annual rate of $0.43 per share for the Series E Preferred Stock (each
subject to adjustment from time to time as set forth elsewhere herein).

          (e) “Liquidation Preference” shall mean $1.10 per share for the Series A Preferred
Stock, $1.78 per share for the Series B Preferred Stock, $2.58 per share for the Series C Preferred
Stock, $2.80 per share for the Series D Preferred Stock, and $4.00 per share for the Series E
Preferred Stock (each subject to adjustment from time to time as set forth elsewhere herein).

          (f) “Options” shall mean rights, options or warrants to subscribe for, purchase or
otherwise acquire Common Stock or Convertible Securities.

          (g) “Original Issue Price” shall mean $1.10 per share for the Series A Preferred
Stock, $1.78 for the Series B Preferred Stock, $2.58 per share for the Series C Preferred Stock,
$2.80 per share for the Series D Preferred Stock, and $4.00 per share for the Series E Preferred
Stock (each subject to adjustment from time to time as set forth elsewhere herein).

          (h) “Preferred Stock” shall mean the Series A Preferred Stock, the Series B Preferred
Stock, the Series C Preferred Stock, the Series D Preferred Stock, and the Series E Preferred
Stock.

     2. Dividends.

          (a) Series D and Series E Preferred Stock. The holders of outstanding shares of
Series D Preferred Stock and the holders of outstanding shares of Series E Preferred Stock shall be
entitled to receive dividends, when and as declared by the Board of Directors, out of any assets at
the time legally available therefor, at the Dividend Rates specified for such shares of Preferred
Stock, payable in preference and priority to any declaration or payment of any distribution on
Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or Common Stock
(collectively, the “Junior Stock”) of the Corporation other than a dividend payable solely in
Common Stock. No distributions shall be made with respect to the Junior Stock during any fiscal
year of the Corporation, other than dividends on the Common Stock payable solely in Common Stock,
until all dividends at the applicable Dividend Rate on the Series E Preferred Stock and Series D
Preferred Stock have been declared and paid or set apart for payment to the holders of Series E
Preferred Stock and the holders of Series D Preferred Stock. Payment of any dividends to the
holders of the Series E Preferred Stock and the Series D Preferred Stock shall be on a pro
rata, pari passu basis in proportion to the Dividend Rates for the Series E Preferred Stock
and Series D Preferred Stock, as applicable.

-2-

 

The right to receive dividends on shares of Series E Preferred Stock and Series D Preferred
Stock shall not be cumulative, and no right to such dividends shall accrue to holders of Series E
Preferred Stock and Series D Preferred Stock by reason of the fact that dividends on said shares
are not declared or paid in any year.

          (b) Series C Preferred Stock. The holders of outstanding shares of Series C Preferred
Stock shall be entitled to receive dividends, when and as declared by the Board of Directors, out
of any assets at the time legally available therefor, at the Dividend Rate specified for such
shares of Preferred Stock payable in preference and priority to any declaration or payment of any
distribution on Series A Preferred Stock, Series B Preferred Stock or Common Stock of the
Corporation other than a dividend payable solely in Common Stock. No distributions shall be made
with respect to the Series A Preferred Stock, Series B Preferred Stock or Common Stock during any
fiscal year of the Corporation, other than dividends on the Common Stock payable solely in Common
Stock, until all dividends at the applicable Dividend Rate on the Series C Preferred Stock have
been declared and paid or set apart for payment to the holders of Series C Preferred Stock. The
right to receive dividends on shares of Series C Preferred Stock shall not be cumulative, and no
right to such dividends shall accrue to holders of Series C Preferred Stock by reason of the fact
that dividends on said shares are not declared or paid in any year.

          (c) Series A Preferred Stock and Series B Preferred Stock. The holders of outstanding
shares of Series A Preferred Stock and the holders of outstanding shares of Series B Preferred
Stock shall be entitled to receive dividends, when and as declared by the Board of Directors, out
of any assets at the time legally available therefor, at the Dividend Rate specified for such
shares of Preferred Stock payable in preference and priority to any declaration or payment of any
distribution on Common Stock of the Corporation other than a dividend payable solely in Common
Stock. No distributions shall be made with respect to the Common Stock, other than dividends
payable solely in Common Stock, until all dividends at the applicable Dividend Rate on the
Preferred Stock have been declared and paid or set apart for payment to the Preferred Stock
holders. Payment of any dividends to the holders of the Series A Preferred Stock and Series B
Preferred Stock shall be on a pro rata, pari passu basis in proportion to the
Dividend Rates for the Series A Preferred Stock and Series B Preferred Stock, as applicable. The
right to receive dividends on shares of Series A Preferred Stock and Series B Preferred Stock shall
not be cumulative, and no right to such dividends shall accrue to holders of Series A Preferred
Stock or Series B Preferred Stock by reason of the fact that dividends on said shares are not
declared or paid in any year.

          (d) Distribution. For purposes of this Section 2, unless the context otherwise
requires, a “distribution” shall mean the transfer of cash or other property without consideration
whether by way of dividend or otherwise, payable other than in Common Stock, or the purchase or
redemption of shares of the Corporation other than (i) repurchase of shares of Common Stock issued
to or held by employees, consultants, officers and directors of the Corporation or its subsidiaries
upon termination of their employment or services pursuant to agreements providing for the right of
said repurchase and at the original purchase price paid by such employees, consultants, officers
and directors; and (ii) repurchase of Common Stock issued to or held by employees, officers,
directors or consultants of the Corporation or its subsidiaries pursuant to rights of first refusal
contained in agreements providing for such rights, provided that such repurchase is unanimously
approved by the Board of Directors; and (iii) any other repurchase or redemption of capital stock
of the corporation unanimously approved by the Board of Directors and approved by the holders of
the majority of the

-3-

 

Common Stock and the holders of more than two-thirds (2/3) of the outstanding shares of the
Preferred Stock, voting as separate classes.

          (e) Common Stock. Dividends may be paid on the Common Stock as and when declared by
the Board of Directors, subject to the prior dividend rights of the Preferred Stock and Section 6
below.

          (f) Non-Cash Distributions. Whenever a distribution provided for in this Section 2
shall be payable in property other than cash, the value of such distribution shall be deemed to be
the fair market value of such property as determined in good faith by the Board of Directors.

          (g) Consent to Certain Repurchases. As authorized by Section 402.5(c) of the
California Corporations Code, Sections 502 and 503 of the California Corporations Code shall not
apply with respect to payments made by the Corporation in connection with (i) repurchase of shares
of Common Stock issued to or held by employees, consultants, officers and directors of the
Corporation or its subsidiaries upon termination of their employment or services pursuant to
agreements providing for the right of said repurchase and at the original purchase price paid by
such employees, consultants, officers and directors, and (ii) repurchase of Common Stock issued to
or held by employees, officers, directors or consultants of the Corporation or its subsidiaries
pursuant to rights of first refusal contained in agreements providing for such rights, provided
that such repurchase is unanimously approved by the Board of Directors, and (iii) any other
repurchase or redemption of Common Stock unanimously approved by the Board of Directors and
approved by the holders of more than two-thirds (2/3) of the outstanding shares of Preferred Stock
voting together as a single class.

     3. Liquidation Rights.

     In the event of any liquidation, dissolution or winding up of the Corporation, either
voluntary or involuntary, distribution of the assets of the Corporation legally available for
distribution to the Corporation’s shareholders shall be made in the following manner:

          (a) Series E Liquidation Preference. The holders of the Series E Preferred Stock
shall be entitled to receive, prior and in preference to any distribution of any of the assets of
the Corporation to the holders of the Common Stock, the Series A Preferred Stock, the Series B
Preferred Stock, the Series C Preferred Stock, or the Series D Preferred Stock, by reason of their
ownership of such stock, an amount per share for each share of Series E Preferred Stock held by
them equal to the sum of (i) the Liquidation Preference for such shares and (ii) all declared and
unpaid dividends on such share of Series E Preferred Stock. If the assets of the Corporation
legally available for distribution to the holders of the Series E Preferred Stock are insufficient
to permit the payment to such holders of the full amounts specified in this Section 3(a), then the
entire assets of the Corporation legally available for distribution shall be distributed with equal
priority and pro rata among the holders of the Series E Preferred Stock in
proportion to the full amounts they would otherwise be entitled to receive pursuant to this Section
3(a).

          (b) Series D Liquidation Preference. After payment to the holders of Series E
Preferred Stock of the full amounts specified in Section 3(a) above, the holders of the Series D
Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of
the

-4-

 

assets of the Corporation to the holders of the Common Stock, the Series A Preferred Stock,
the Series B Preferred Stock or the Series C Preferred Stock by reason of their ownership of such
stock, an amount per share for each share of Series D Preferred Stock held by them equal to the sum
of (i) the Liquidation Preference for such shares and (ii) all declared and unpaid dividends on
such share of Series D Preferred Stock. If the remaining assets of the Corporation legally
available for distribution to the holders of Series D Preferred Stock are insufficient to permit
the payment to such holders of the full amounts specified in this Section 3(b), then the entire
remaining assets of the Corporation legally available for distribution shall be distributed with
equal priority and pro rata among the holders of the Series D Preferred Stock in
proportion to the full amounts they would otherwise be entitled to receive pursuant to this Section
3(b).

          (c) Series C Liquidation Preference. After payment to the holders of Series E
Preferred Stock and to the holders of Series D Preferred Stock of the full amounts specified in
Sections 3(a) and 3(b) above, the holders of the Series C Preferred Stock shall be entitled to
receive, prior and in preference to any distribution of any of the assets of the Corporation to the
holders of the Common Stock, the Series A Preferred Stock or the Series B Preferred Stock by reason
of their ownership of such stock, an amount per share for each share of Series C Preferred Stock
held by them equal to the sum of (i) the Liquidation Preference for such shares and (ii) all
declared and unpaid dividends on such share of Series C Preferred Stock. If the remaining assets
of the Corporation legally available for distribution to the holders of the Series C Preferred
Stock are insufficient to permit the payment to such holders of the full amounts specified in this
Section 3(c), then the entire remaining assets of the Corporation legally available for
distribution shall be distributed with equal priority and pro rata among the
holders of the Series C Preferred Stock in proportion to the full amounts they would otherwise be
entitled to receive pursuant to this Section 3(c).

          (d) Series B Liquidation Preference. After the payment to the holders of Series E
Preferred Stock, the holders of Series D Preferred Stock, and the holders of Series C Preferred
Stock of the full amounts specified in Sections 3(a), 3(b), and 3(c) above, the holders of the
Series B Preferred Stock shall be entitled to receive, prior and in preference to any distribution
of any of the remaining assets of the Corporation to the holders of the Common Stock or Series A
Preferred Stock by reason of their ownership of such stock, an amount per share for each share of
Series B Preferred Stock held by them equal to the sum of (i) the Liquidation Preference for such
shares and (ii) all declared and unpaid dividends on such share of Series B Preferred Stock. If
the remaining assets of the Corporation legally available for distribution to the holders of the
Series B Preferred Stock are insufficient to permit the payment to such holders of the full amounts
specified in this Section 3(d), then the entire remaining assets of the Corporation legally
available for distribution shall be distributed with equal priority and pro rata
among the holders of the Series B Preferred Stock in proportion to the full amounts they would
otherwise be entitled to receive pursuant to this Section 3(d).

          (e) Series A Liquidation Preference. After the payment to the holders of Series E
Preferred Stock, the holders of Series D Preferred Stock, the holders of Series C Preferred Stock,
and the holders of Series B Preferred Stock of the full amounts specified in Sections 3(a), 3(b),
3(c) and 3(d) above, the holders of the Series A Preferred Stock shall be entitled to receive,
prior and in preference to any distribution of any of the remaining assets of the Corporation to
the holders of the Common Stock by reason of their ownership of such stock, an amount per share for
each share of

-5-

 

Series A Preferred Stock held by them equal to the sum of (i) the Liquidation Preference for
such shares and (ii) all declared and unpaid dividends on such share of Series A Preferred Stock.
If the remaining assets of the Corporation legally available for distribution to the holders of the
Series A Preferred Stock are insufficient to permit the payment to such holders of the full amounts
specified in this Section 3(e), then the entire remaining assets of the Corporation legally
available for distribution shall be distributed with equal priority and pro rata
among the holders of the Series A Preferred Stock in proportion to the full amounts they would
otherwise be entitled to receive pursuant to this Section 3(e).

          (f) Remaining Assets. After the payment to the holders of Preferred Stock of the full
amounts specified in Sections 3(a), 3(b), 3(c), 3(d) and 3(e) above, the entire remaining assets of
the Corporation legally available for distribution shall be distributed pro rata to
holders of the Common Stock of the Corporation in proportion to the number of shares of Common
Stock held by them.

          (g) Shares Not Treated as Both Preferred Stock and Common Stock in Any Distribution.
Shares of Preferred Stock shall not be entitled to be converted into shares of Common Stock in
order to participate in any distribution, or series of distributions, as shares of Common Stock,
without first foregoing participation in the distribution, or series of distributions, as shares of
Preferred Stock.

          (h) Reorganization. For purposes of this Section 3, a liquidation, dissolution or
winding up of the Corporation shall be deemed to be occasioned by, or to include, (i) the
acquisition of the Corporation by another entity by means of any transaction or series of related
transactions (including, without limitation, any stock acquisition, reorganization, merger or
consolidation but excluding any merger effected exclusively for the purpose of changing the
domicile of the Corporation) other than a transaction or series of transactions in which the
holders of the voting securities of the Corporation outstanding immediately prior to such
transaction or series of transactions continue to retain (either by such voting securities
remaining outstanding or by such voting securities being converted into voting securities of the
surviving entity), as a result of shares in the Corporation held by such holders prior to such
transaction, at least fifty percent (50%) of the total voting power represented by the voting
securities of the Corporation or such surviving entity outstanding immediately after such
transaction or series of transactions; or (ii) a sale, transfer, lease or other conveyance of all
or substantially all of the assets of the Corporation.

          (i) Valuation of Non-Cash Consideration. If any assets of the Corporation distributed
to shareholders in connection with any liquidation, dissolution, or winding up of the Corporation
are other than cash, then the value of such assets shall be their fair market value as determined
in good faith by the Board of Directors, except that any securities to be distributed to
shareholders in a liquidation, dissolution, or winding up of the Corporation shall be valued as
follows:

               (i) If the securities are then traded on a national securities exchange or the Nasdaq Stock
Market System (or a similar national quotation system), then the value of the securities shall be
deemed to be to the average of the closing prices of the securities on such exchange or system over
the ten (10) trading day period ending five (5) trading days prior to the distribution;

-6-

 

               (ii) if the securities are actively traded over-the-counter, then the value of the securities
shall be deemed to be the average of the closing bid prices of the securities over the ten (10)
trading day period ending five (5) trading days prior to the distribution; or

               (iii) if there is no active public market for the securities, then the value of the securities
shall be deemed to be the fair market value thereof as determined in good faith by the Board of
Directors which determination shall include consideration of the illiquidity of the securities.

     In the event of a merger or other acquisition of the Corporation by another entity, the
distribution date shall be deemed to the date such transaction closes.

     For the purposes of this Section 3(i), “trading day” shall mean any day on which the exchange
or system on which the securities to be distributed are traded is open, and “closing prices” or
“closing bid prices” shall be deemed to be: (i) for securities traded primarily on the New York
Stock Exchange, the American Stock Exchange or Nasdaq, the last reported trade price or sale price,
as the case may be, at 4:00 p.m., New York time, on that day and (ii) for securities listed or
traded on other exchanges, markets and systems, the market price as of the end of the “regular
hours” trading period that is generally accepted as such for such exchange, market or system. If,
after the date hereof, the benchmark times generally accepted in the securities industry for
determining the market price of a stock as of a given trading day shall change from those set forth
above, the fair market value shall be determined as of such other generally accepted benchmark
times.

     4. Conversion. The holders of the Preferred Stock shall have conversion rights as
follows (the “Conversion Rights”):

          (a) Right to Convert. Subject to Section 4(c), each share of Preferred Stock shall be
convertible, at the option of the holder thereof, at any time after the date of issuance of such
share at the office of the Corporation or any transfer agent for the Preferred Stock, into that
number of fully-paid, nonassessable shares of Common Stock determined by dividing the Original
Issue Price for the relevant series by the Conversion Price for such series. (The number of shares
of Common Stock into which each share of Preferred Stock of a series may be converted is
hereinafter referred to as the “Conversion Rate” for each such series.) Upon any decrease or
increase in the Conversion Price for any series of Preferred Stock, as described in this Section 4,
the Conversion Rate for such series shall be appropriately increased or decreased.

          (b) Automatic Conversion. Each share of Preferred Stock shall automatically be
converted into fully-paid, non-assessable shares of Common Stock at the then effective Conversion
Rate for such share (i) immediately prior to the closing of a firm commitment underwritten initial
public offering on Form S-1 (or successor form) filed under the Securities Act of 1933, as amended
(the “Securities Act”), covering the offer and sale of the Corporation’s Common Stock, provided
that the offering price per share is not less than $5.69 (as adjusted for subdivisions and
combinations of the Common Stock and changes in the Common Stock as set forth in Sections 4(e) and
4(g)) and the aggregate gross proceeds to the Corporation are not less than $25,000,000, or (ii)
upon the receipt by the Corporation of a written consent or request for such conversion from the
holders of two-thirds of the shares of Preferred Stock then outstanding, or, if later, the
effective date for

-7-

 

conversion specified in such requests (each of the events referred to in (i) and (ii) being
hereinafter referred to as an “Automatic Conversion Event”).

          (c) Mechanics of Conversion. No fractional shares of Common Stock shall be issued
upon conversion of Preferred Stock. In lieu of any fractional shares to which the holder would
otherwise be entitled, the Corporation shall pay cash equal to such fraction multiplied by the then
fair market value of a share of Common Stock as determined by the Board of Directors. For such
purpose, all shares of Preferred Stock held by each holder of Preferred Stock shall be aggregated,
and any resulting fractional share of Common Stock shall be paid in cash. Before any holder of
Preferred Stock shall be entitled to convert the same into full shares of Common Stock, and to
receive certificates therefor, he shall either surrender the certificate or certificates therefor,
duly endorsed, at the office of the Corporation or of any transfer agent for the Preferred Stock,
or notify the Corporation or its transfer agent that such certificate or certificates have been
lost, stolen or destroyed and execute an agreement satisfactory to the Corporation to indemnify the
Corporation from any loss incurred by it in connection with such certificate or certificates, and
shall give written notice to the Corporation at such office that he elects to convert the same;
provided, however, that on the date of an Automatic Conversion Event, the
outstanding shares of Preferred Stock shall be converted automatically without any further action
by the holders of such shares and whether or not the certificates representing such shares are
surrendered to the Corporation or its transfer agent; provided further, however, that the
Corporation shall not be obligated to issue certificates evidencing the shares of Common Stock
issuable upon such Automatic Conversion Event unless either the certificates evidencing such shares
of Preferred Stock are delivered to the Corporation or its transfer agent as provided above, or the
holder notifies the Corporation or its transfer agent that such certificates have been lost, stolen
or destroyed and executes an agreement satisfactory to the Corporation to indemnify the Corporation
from any loss incurred by it in connection with such certificates. On the date of the occurrence
of an Automatic Conversion Event, each holder of record of shares of Preferred Stock shall be
deemed to be the holder of record of the Common Stock issuable upon such conversion,
notwithstanding that the certificates representing such shares of Preferred Stock shall not have
been surrendered at the office of the Corporation, that notice from the Corporation shall not have
been received by any holder of record of shares of Preferred Stock, or that the certificates
evidencing such shares of Common Stock shall not then be actually delivered to such holder.

     The Corporation shall, as soon as practicable after such delivery, or after such agreement and
indemnification, issue and deliver at such office to such holder of Preferred Stock, a certificate
or certificates for the number of shares of Common Stock to which he shall be entitled as aforesaid
and a check payable to the holder in the amount of any cash amounts payable as the result of a
conversion into fractional shares of Common Stock, plus any declared and unpaid dividends on the
converted Preferred Stock. Such conversion shall be deemed to have been made immediately prior to
the close of business on the date of such surrender of the shares of Preferred Stock to be
converted, and the person or persons entitled to receive the shares of Common Stock issuable upon
such conversion shall be treated for all purposes as the record holder or holders of such shares of
Common Stock on such date; provided, however, that if the conversion is in
connection with an underwritten offer of securities registered pursuant to the Securities Act the
conversion may, at the option of any holder tendering Preferred Stock for conversion, be
conditioned upon the closing of the sale of securities pursuant to such offering, in which event
the person(s) entitled to receive the

-8-

 

Common Stock issuable upon such conversion of the Preferred Stock shall not be deemed to have
converted such Preferred Stock until immediately prior to the closing of the sale of such
securities.

          (d) Adjustments to Conversion Price for Diluting Issues.

               (i) Special Definition. For purposes of this Section 4(d), “Additional Shares of
Common” shall mean all shares of Common Stock issued (or, pursuant to Section 4(d)(iii), deemed to
be issued) by the Corporation after the filing of these Articles of Incorporation, other than:

                    (1) [omitted];

                    (2) shares of Common Stock issued or issuable to officers, directors and employees of, or
consultants and other service providers to, the Corporation pursuant to stock grants, option plans,
purchase plans or other employee stock incentive programs or arrangements approved by the Board of
Directors or upon exercise of options or warrants granted to such parties pursuant to any such
plan, program or arrangement;

                    (3) shares of Common Stock issued upon the exercise or conversion of Options or Convertible
Securities outstanding as of the date of the filing of these Articles of Incorporation;

                    (4) shares of Common Stock issued or issuable as a dividend or distribution on Preferred Stock
or pursuant to any event for which adjustment is made pursuant to Section 4(e), 4(f) or 4(g)
hereof;

                    (5) shares of Common Stock issued in a registered public offering under the Securities Act
pursuant to which all outstanding shares of Preferred Stock are automatically converted into Common
Stock pursuant to an Automatic Conversion Event;

                    (6) shares of Common Stock issued or issuable pursuant to the acquisition of another
corporation by the Corporation by merger, purchase of substantially all of the assets or other
reorganization or to a joint venture agreement, provided, that such issuances are unanimously
approved by the Board of Directors;

                    (7) shares of Common Stock issued or issuable to banks, equipment lessors or other financial
institutions pursuant to a commercial leasing or debt financing transaction approved by the Board
of Directors;

                    (8) shares of Common Stock issued or issuable in connection with sponsored research,
collaboration, technology license, development, OEM, marketing or other similar agreements, or
strategic partnerships or relationships, if the issuance is approved by the Board of Directors; and

                    (9) shares of Common Stock issued or issuable upon conversion of up to $18 million in
aggregate principal amount (plus interest) of convertible promissory notes originally issued or
issuable to Biomedical Sciences Investment Fund Pte Ltd. or its affiliates (“BMSIF”) and upon
conversion of up to $3 million in aggregate principal amount (plus interest) of convertible
promissory notes originally issued or issuable to Invus, L.P. or its affiliates, provided

-9-

 

that with respect to any shares of Common Stock issued or issuable upon conversion of
convertible promissory notes issued or issuable to BMSIF after the filing of these Articles of
Incorporation with an aggregate principal amount in excess of $3.0 million, such shares of Common
Stock shall only be excluded from the definition of Additional Shares of Common pursuant to this
section if and to the extent the applicable conversion price for such shares equals or exceeds
$3.60 (as adjusted for stock splits, subdivisions, combinations or stock dividends).

               (ii) No Adjustment of Conversion Price. No adjustment in the Conversion Price of a
particular series of Preferred Stock shall be made in respect of the issuance of Additional Shares
of Common unless the consideration per share (as determined pursuant to Section 4(d)(vii)) for an
Additional Share of Common issued or deemed to be issued by the Corporation is less than the
Conversion Price in effect on the date of, and immediately prior to such issue, for such series of
Preferred Stock.

               (iii) Deemed Issue of Additional Shares of Common. In the event the Corporation at
any time or from time to time after the date of the filing of these Articles of Incorporation shall
issue any Options or Convertible Securities or shall fix a record date for the determination of
holders of any class of securities entitled to receive any such Options or Convertible Securities,
then the maximum number of shares (as set forth in the instrument relating thereto without regard
to any provisions contained therein for a subsequent adjustment of such number) of Common Stock
issuable upon the exercise of such Options or, in the case of Convertible Securities, the
conversion or exchange of such Convertible Securities or, in the case of Options for Convertible
Securities, the exercise of such Options and the conversion or exchange of the underlying
securities, shall be deemed to have been issued as of the time of such issue or, in case such a
record date shall have been fixed, as of the close of business on such record date, provided that
in any such case in which shares are deemed to be issued:

                    (1) no further adjustment in the Conversion Price of the Preferred Stock shall be made upon
the subsequent issue of Convertible Securities or shares of Common Stock in connection with the
exercise of such Options or conversion or exchange of such Convertible Securities pursuant to the
terms of such Options or Convertible Securities;

                    (2) if no adjustment in the Conversion Price of the Preferred Stock was made upon the original
issue of (or upon the occurrence of a record date with respect to) such Options or Convertible
Securities and such Options or Convertible Securities are revised to provide, or by their terms
provide, with the passage of time or otherwise, for any increase or decrease in the consideration
payable to the Corporation, or any increase or decrease in the number of shares of Common Stock
issuable, upon the exercise, conversion or exchange thereof, then such Options or Convertible
Securities as so revised (and the Additional Shares of Common subject thereto) shall be deemed to
have been issued effective upon such increase or decrease becoming effective;

                    (3) if such Options or Convertible Securities are revised to provide, or by their terms
provide, with the passage of time or otherwise, for any increase or decrease in the consideration
payable to the Corporation, or any increase or decrease in the number of shares of Common Stock
issuable, upon the exercise, conversion or exchange thereof, the Conversion Price of the Preferred
Stock computed upon the original issue thereof (or upon the occurrence of a record date with
respect thereto), and any subsequent adjustments based thereon,

-10-

 

shall, upon any such increase or decrease becoming effective, be recomputed to reflect such
increase or decrease insofar as it affects such Options or the rights of conversion or exchange
under such Convertible Securities;

                    (4) no readjustment pursuant to clause (3) above shall have the effect of increasing the
Conversion Price of the Preferred Stock to an amount which exceeds the lower of (i) the Conversion
Price of the Preferred Stock on the original adjustment date, or (ii) the Conversion Price of the
Preferred Stock that would have resulted from any issuance of Additional Shares of Common between
the original adjustment date and such readjustment date;

                    (5) upon the expiration of any such Options or any rights of conversion or exchange under such
Convertible Securities which shall not have been exercised, the Conversion Price computed upon the
original issue thereof (or upon the occurrence of a record date with respect thereto) and any
subsequent adjustments based thereon shall, upon such expiration, be recomputed as if:

                         (A) in the case of Convertible Securities or Options for Common Stock, the only Additional
Shares of Common issued were the shares of Common Stock, if any, actually issued upon the exercise
of such Options or the conversion or exchange of such Convertible Securities and the consideration
received therefor was the consideration actually received by the Corporation for the issue of such
exercised Options plus the consideration actually received by the Corporation upon such exercise or
for the issue of all such Convertible Securities which were actually converted or exchanged, plus
the additional consideration, if any, actually received by the Corporation upon such conversion or
exchange, and

                         (B) in the case of Options for Convertible Securities, only the Convertible Securities, if
any, actually issued upon the exercise thereof were issued at the time of issue of such Options,
and the consideration received by the Corporation for the Additional Shares of Common deemed to
have been then issued was the consideration actually received by the Corporation for the issue of
such exercised Options, plus the consideration deemed to have been received by the Corporation
(determined pursuant to Section 4(d)(vii)) upon the issue of the Convertible Securities with
respect to which such Options were actually exercised; and

                    (6) if such record date shall have been fixed and such Options or Convertible Securities are
not issued on the date fixed therefor, the adjustment previously made in the Conversion Price which
became effective on such record date shall be canceled as of the close of business on such record
date, and thereafter the Conversion Price shall be adjusted pursuant to this Section 4(d)(iii) as
of the actual date of their issuance.

               (iv) Adjustment of Conversion Price of Series E Preferred Stock Upon Issuance of
Additional Shares of Common.

                    (1) For so long as the Conversion Price of the Series E Preferred Stock is greater than $2.58
(as adjusted for subdivisions and combinations of the Common Stock and changes in the Common Stock
as set forth in Sections 4(e) and 4(g)) (the “Series D/E Ratchet Amount”), in the event this
Corporation shall issue Additional Shares of Common (including Additional Shares of Common deemed
to be issued pursuant to Section 4(d)(iii)) for a consideration

-11-

 

per share less than the applicable Conversion Price of the Series E Preferred Stock in effect
on the date of and immediately prior to such issue, but for a consideration per share equal to or
greater than the Series D/E Ratchet Amount, then the Conversion Price of the Series E Preferred
Stock shall be reduced concurrently with such issue to a price (calculated to the nearest cent)
equal to the per share price of the Additional Shares of Common.

                    (2) In the event this Corporation shall issue Additional Shares of Common (including
Additional Shares of Common deemed to be issued pursuant to Section 4(d)(iii)) without
consideration or for a consideration per share less than the Series D/E Ratchet Amount, then the
Conversion Price of the Series E Preferred Stock immediately prior to such issue shall be deemed to
be equal to the Series D/E Ratchet Amount (the “Series E Adjusted Conversion Price”), and such
Series E Adjusted Conversion Price shall be further reduced, concurrently with such issue, to a
price (calculated to the nearest cent) determined by multiplying such Series E Adjusted Conversion
Price by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of shares of Common Stock which the
aggregate consideration received by the Corporation for the total number of Additional Shares of
Common so issued would purchase at such Adjusted Conversion Price, and the denominator of which
shall be the number of shares of Common Stock outstanding immediately prior to such issue plus the
number of such Additional Shares of Common so issued. For the purposes of this Section
4(d)(iv)(2), all shares of Common Stock issuable upon exercise of outstanding Options or the
conversion of outstanding Convertible Securities and shares of Preferred Stock, and all Additional
Shares of Common deemed issued pursuant to Section 4(d)(iii) hereof, shall be deemed to be
outstanding. Section 4(d)(iv)(3) shall govern adjustments to the Conversion Price of the Series E
Preferred Stock after the first adjustment to the Conversion Price of the Series E Preferred Stock
pursuant to this Section 4(d)(iv)(2).

                    (3) After any adjustment to the Conversion Price of the Series E Preferred Stock pursuant to
Section 4(d)(iv)(2), in the event this Corporation shall issue Additional Shares of Common
(including Additional Shares of Common deemed to be issued pursuant to Section 4(d)(iii)) without
consideration or for a consideration per share less than Conversion Price of the Series E Preferred
Stock in effect on the date of and immediately prior to such issue, then, the Conversion Price of
the Series E Preferred Stock shall be reduced concurrently with such issue, to a price (calculated
to the nearest cent) determined by multiplying such Conversion Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately prior to such issue
plus the number of shares of Common Stock which the aggregate consideration received by the
Corporation for the total number of Additional Shares of Common so issued would purchase at such
Conversion Price, and the denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of such Additional Shares of Common so
issued. For the purposes of this Section 4(d)(iv)(3), all shares of Common Stock issuable upon
exercise of outstanding Options or the conversion of outstanding Convertible Securities and shares
of Preferred Stock, and all Additional Shares of Common deemed issued pursuant to Section 4(d)(iii)
hereof, shall be deemed to be outstanding.

-12-

 

               (v) Adjustment of Conversion Price of Series D Preferred Stock Upon Issuance of Additional
Shares of Common.

                    (1) For so long as the Conversion Price of the Series D Preferred Stock is greater than the
Series D/E Ratchet Amount, in the event this Corporation shall issue Additional Shares of Common
(including Additional Shares of Common deemed to be issued pursuant to Section 4(d)(iii)) for a
consideration per share less than the applicable Conversion Price of the Series D Preferred Stock
in effect on the date of and immediately prior to such issue, but for a consideration per share
equal to or greater than the Series D/E Ratchet Amount, then the Conversion Price of the Series D
Preferred Stock shall be reduced concurrently with such issue to a price (calculated to the nearest
cent) equal to the per share price of the Additional Shares of Common.

                    (2) In the event this Corporation shall issue Additional Shares of Common (including
Additional Shares of Common deemed to be issued pursuant to Section 4(d)(iii)) without
consideration or for a consideration per share less than the Series D/E Ratchet Amount, then the
Conversion Price of the Series D Preferred Stock immediately prior to such issue shall be deemed to
be equal to the Series D/E Ratchet Amount (the “Series D Adjusted Conversion Price”), and such
Series D Adjusted Conversion Price shall be further reduced, concurrently with such issue, to a
price (calculated to the nearest cent) determined by multiplying such Series D Adjusted Conversion
Price by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of shares of Common Stock which the
aggregate consideration received by the Corporation for the total number of Additional Shares of
Common so issued would purchase at such Series D Adjusted Conversion Price, and the denominator of
which shall be the number of shares of Common Stock outstanding immediately prior to such issue
plus the number of such Additional Shares of Common so issued. For the purposes of this Section
4(d)(v)(2), all shares of Common Stock issuable upon exercise of outstanding Options or the
conversion of outstanding Convertible Securities and shares of Preferred Stock, and all Additional
Shares of Common deemed issued pursuant to Section 4(d)(iii) hereof, shall be deemed to be
outstanding. Section 4(d)(v)(3) shall govern adjustments to the Conversion Price of the Series D
Preferred Stock after the first adjustment to the Conversion Price of the Series D Preferred Stock
pursuant to this Section 4(d)(v)(2).

                    (3) After any adjustment to the Conversion Price of the Series D Preferred Stock pursuant to
Section 4(d)(v)(2), in the event this Corporation shall issue Additional Shares of Common
(including Additional Shares of Common deemed to be issued pursuant to Section 4(d)(iii)) without
consideration or for a consideration per share less than Conversion Price of the Series D Preferred
Stock in effect on the date of and immediately prior to such issue, then, the Conversion Price of
the Series D Preferred Stock shall be reduced concurrently with such issue, to a price (calculated
to the nearest cent) determined by multiplying such Conversion Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately prior to such issue
plus the number of shares of Common Stock which the aggregate consideration received by the
Corporation for the total number of Additional Shares of Common so issued would purchase at such
Conversion Price, and the denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of such Additional Shares of Common so
issued. For the purposes of this Section 4(d)(v)(3), all shares of Common Stock issuable upon
exercise of outstanding Options or the conversion of outstanding Convertible

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Securities and shares of Preferred Stock, and all Additional Shares of Common deemed issued
pursuant to Section 4(d)(iii) hereof, shall be deemed to be outstanding.

               (vi) Adjustment of Conversion Price of Series A, B and C Preferred Stock. In the
event this Corporation shall issue Additional Shares of Common (including Additional Shares of
Common deemed to be issued pursuant to Section 4(d)(iii)) without consideration or for a
consideration per share less than the applicable Conversion Price of the Series A Preferred Stock,
Series B Preferred Stock or Series C Preferred Stock in effect on the date of and immediately prior
to such issue, then, the Conversion Price of the Series A Preferred Stock, Series B Preferred Stock
or Series C Preferred Stock (if affected) shall be reduced, concurrently with such issue, to a
price (calculated to the nearest cent) determined by multiplying such Conversion Price by a
fraction, the numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such issue plus the number of shares of Common Stock which the aggregate
consideration received by the Corporation for the total number of Additional Shares of Common so
issued would purchase at such Conversion Price, and the denominator of which shall be the number of
shares of Common Stock outstanding immediately prior to such issue plus the number of such
Additional Shares of Common so issued. For the purposes of this Section 4(d)(vi), all shares of
Common Stock issuable upon exercise of outstanding Options or the conversion of outstanding
Convertible Securities and shares of Preferred Stock, and all Additional Shares of Common deemed
issued pursuant to Section 4(d)(iii) hereof, shall be deemed to be outstanding.

               (vii) Determination of Consideration. For purposes of this Section 4(d), the
consideration received by the Corporation for the issue (or deemed issue) of any Additional Shares
of Common shall be computed as follows:

                    (1) Cash and Property. Such consideration shall:

                         (A) insofar as it consists of cash, be computed at the aggregate amount of cash received by
the Corporation before deducting reasonable discounts, commissions or other expenses allowed, paid
or incurred by the Corporation for any underwriting or otherwise in connection with such issue (or
deemed issue);

                         (B) insofar as it consists of property other than cash, be computed at the fair market value
thereof at the time of such issue, as determined in good faith by the Board of Directors; and

                         (C) in the event Additional Shares of Common are issued together with other shares or
securities or other assets of the Corporation for consideration which covers both, be the
proportion of such consideration so received, computed as provided in clauses (A) and (B) above, as
reasonably determined in good faith by the Board of Directors.

                    (2) Options and Convertible Securities. The consideration per share received by the
Corporation for Additional Shares of Common deemed to have been issued pursuant to Section
4(d)(iii) shall be determined by dividing

                         (X) the total amount, if any, received or receivable by the Corporation as consideration for
the issue of such Options or Convertible Securities, plus the minimum aggregate amount of
additional consideration (as set forth in the instruments relating

-14-

 

thereto, without regard to any provision contained therein for a subsequent adjustment of such
consideration) payable to the Corporation upon the exercise of such Options or the conversion or
exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the
exercise of such Options for Convertible Securities and the conversion or exchange of such
Convertible Securities by

                         (Y) the maximum number of shares of Common Stock (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a subsequent adjustment of such
number) issuable upon the exercise of such Options or the conversion or exchange of such
Convertible Securities.

          (e) Adjustments for Subdivisions or Combinations of Common Stock. In the event the
outstanding shares of Common Stock shall be subdivided (by stock split, by payment of a stock
dividend or otherwise), into a greater number of shares of Common Stock, the Conversion Price of
each series of Preferred Stock in effect immediately prior to such subdivision shall, concurrently
with the effectiveness of such subdivision, be proportionately decreased. In the event the
outstanding shares of Common Stock shall be combined (by reclassification or otherwise) into a
lesser number of shares of Common Stock, the Conversion Prices in effect immediately prior to such
combination shall, concurrently with the effectiveness of such combination, be proportionately
increased.

          (f) Adjustments for Subdivisions or Combinations of Preferred Stock. In the event the
outstanding shares of Preferred Stock or a series of Preferred Stock shall be subdivided (by stock
split, by payment of a stock dividend or otherwise), into a greater number of shares of Preferred
Stock, the Dividend Rate, Original Issue Price and Liquidation Preference of the affected series of
Preferred Stock in effect immediately prior to such subdivision shall, concurrently with the
effectiveness of such subdivision, be proportionately decreased. In the event the outstanding
shares of Preferred Stock or a series of Preferred Stock shall be combined (by reclassification or
otherwise) into a lesser number of shares of Preferred Stock, the Dividend Rate, Original Issue
Price and Liquidation Preference of the affected series of Preferred Stock in effect immediately
prior to such combination shall, concurrently with the effectiveness of such combination, be
proportionately increased.

          (g) Adjustments for Reclassification, Exchange and Substitution. Subject to Section 3
above (“Liquidation Rights”), if the Common Stock issuable upon conversion of the Preferred Stock
shall be changed into the same or a different number of shares of any other class or classes of
stock, whether by capital reorganization, reclassification or otherwise (other than a subdivision
or combination of shares provided for above), then, in any such event, in lieu of the number of
shares of Common Stock which the holders would otherwise have been entitled to receive, each holder
of such Preferred Stock shall have the right thereafter to convert such shares of Preferred Stock
into a number of shares of such other class or classes of stock which a holder of the number of
shares of Common Stock deliverable upon conversion of such series of Preferred Stock immediately
before that change would have been entitled to receive in such reorganization or reclassification,
all subject to further adjustment as provided herein with respect to such other shares.

          (h) No Impairment. The Corporation will not through any reorganization, transfer of
assets, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or
seek

-15-

 

to avoid the observance or performance of any of the terms to be observed or performed
hereunder by the Corporation but will at all times in good faith assist in the carrying out of all
the provisions of this Section 4 and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the holders of Preferred Stock against
impairment. Notwithstanding the foregoing, nothing in this Section 4(h) shall prohibit the
Corporation from amending its Articles of Incorporation with the requisite consent of its
shareholders and the board of directors.

          (i) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment of the Conversion Price pursuant to this Section 4, the Corporation at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and
furnish to each holder of Preferred Stock a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or readjustment is based.
The Corporation shall, upon the written request at any time of any holder of Preferred Stock,
furnish or cause to be furnished to such holder a like certificate setting forth (i) such
adjustments and readjustments, (ii) the Conversion Price at the time in effect and (iii) the number
of shares of Common Stock and the amount, if any, of other property which at the time would be
received upon the conversion of Preferred Stock.

          (j) Notices of Record Date. In the event that this Corporation shall propose at any
time:

               (i) to declare any dividend or distribution upon its Common Stock, whether in cash, property,
stock or other securities, whether or not a regular cash dividend and whether or not out of
earnings or earned surplus;

               (ii) to effect any reclassification or recapitalization of its Common Stock outstanding
involving a change in the Common Stock; or

               (iii) to voluntarily liquidate or dissolve or to enter into any transaction deemed to be a
liquidation, dissolution or winding up of the corporation pursuant to Section 3(f);

then, in connection with each such event, this Corporation shall send to the holders of the
Preferred Stock at least 14 days’ prior written notice of the date on which a record shall be taken
for such dividend or distribution (and specifying the date on which the holders of Common Stock
shall be entitled thereto) or for determining rights to vote in respect of the matters referred to
in (ii) and (iii) above.

     Each such written notice shall be given by first class mail, postage prepaid, addressed to the
holders of Preferred Stock at the address for each such holder as shown on the books of this
Corporation.

     The right of the holders of the Preferred Stock to notice hereunder may be waived by the
holders of more than two-thirds (2/3) of the outstanding shares of the Preferred Stock voting
together as a single class.

          (k) Reservation of Stock Issuable Upon Conversion. The Corporation shall at all times
reserve and keep available out of its authorized but unissued shares of Common Stock solely

-16-

 

for the purpose of effecting the conversion of the shares of the Preferred Stock, such number
of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of
all then outstanding shares of the Preferred Stock; and if at any time the number of authorized but
unissued shares of Common Stock shall not be sufficient to effect the conversion of all then
outstanding shares of the Preferred Stock, the Corporation will take such corporate action as may,
in the opinion of its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purpose.

          (l) Waiver of Adjustment of Conversion Price. Notwithstanding anything herein to the
contrary, any downward adjustment of the Conversion Price of any series of Preferred Stock may be
waived by the consent or vote of the holders of more than two-thirds (2/3) of the outstanding shares
of such series. Any such waiver shall bind all future holders of shares of such series of
Preferred Stock.

     5. Voting.

          (a) Restricted Class Voting. Except as otherwise expressly provided herein or as
required by law, the holders of Preferred Stock and the holders of Common Stock shall vote together
and not as separate classes.

          (b) No Series Voting. Other than as provided herein or required by law, there shall
be no series voting.

          (c) Preferred Stock. Each holder of Preferred Stock shall be entitled to the number
of votes equal to the number of shares of Common Stock into which the shares of Preferred Stock
held by such holder could be converted as of the record date. The holders of shares of the
Preferred Stock shall be entitled to vote on all matters on which the Common Stock shall be
entitled to vote. Holders of Preferred Stock shall be entitled to notice of any shareholders’
meeting in accordance with the Bylaws of the Corporation. Fractional votes shall not, however, be
permitted and any fractional voting rights resulting from the above formula (after aggregating all
shares into which shares of Preferred Stock held by each holder could be converted), shall be
disregarded.

          (d) Common Stock. Each holder of shares of Common Stock shall be entitled to one vote
for each share thereof held.

          (e) Election of Directors. So long as at least 2,000,000 shares of Series D Preferred
Stock (as adjusted for stock splits, subdivisions, combinations or stock dividends with respect to
such shares) remain outstanding, the holders of the Series D Preferred Stock, voting as a separate
class, shall be entitled to elect two (2) members of the Corporation’s Board of Directors at each
meeting or pursuant to each consent of the Corporation’s shareholders for the election of
directors. So long as at least 2,000,000 shares of Series C Preferred Stock (as adjusted for stock
splits, subdivisions, combinations or stock dividends with respect to such shares) remain
outstanding, the holders of Series C Preferred Stock, voting as a separate class, shall be entitled
to elect three (3) members of the Corporation’s Board of Directors at each meeting or pursuant to
each consent of the Corporation’s shareholders for the election of directors. Any additional
members of the Corporation’s Board of Directors shall be elected by the holders of Common Stock,
Series A

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Preferred Stock, Series B Preferred Stock, and Series E Preferred Stock, voting together as a
single class.

     6. Amendments and Changes Requiring Approval of Preferred Stock. As long as any of
the Preferred Stock shall be issued and outstanding, the Corporation shall not, without first
obtaining the approval (by vote or written consent as provided by law) of the holders of at least
two-thirds (2/3) of the outstanding shares of the Preferred Stock voting together as a single class:

          (a) amend, alter or repeal any provision of the Articles of Incorporation or By-laws of the
Corporation if such action would adversely alter the rights, preferences, privileges or powers of,
or restrictions provided for the benefit of the Preferred Stock or any series thereof;

          (b) enter into any transaction or series of related transactions deemed to be a liquidation,
dissolution or winding up of the Corporation pursuant to Section 3(f) above;

          (c) voluntarily liquidate or dissolve;

          (d) declare or pay any distribution (as defined in Section 2(d) except for distributions upon
a liquidation or dissolution) with respect to the Common Stock of the Corporation;

          (e) permit any subsidiary of the Corporation to sell securities to a third party (other than
directors’ qualifying shares in the case of subsidiaries outside the United States);

          (f) increase or decrease (other than for decreases resulting from conversion of the Preferred
Stock) the authorized number of shares of Preferred Stock;

          (g) authorize or create (by reclassification or otherwise) any new class or series of capital
stock having rights, preferences or privileges with respect to dividends, liquidation, redemption,
conversion or other rights senior to or on a parity with any series of Preferred Stock or with
respect to voting senior to any series of Preferred Stock;

          (h) increase or decrease the authorized number of directors of the Corporation; or

          (i) amend this Section 6.

     7. Amendments and Changes Requiring the Approval of the Series E Preferred Stock.

          (a) As long as any of the Series E Preferred Stock shall be issued and outstanding, the
Corporation shall not, without first obtaining the approval (by vote or written consent as provided
by law) of the holders of at least 60% of the outstanding shares of the Series E Preferred Stock:

               (i) amend, alter or repeal any provision of the Articles of Incorporation of the Corporation
if such action would adversely alter the rights, preferences, privileges or powers of, or
restrictions provided for the benefit of the Series E Preferred Stock in a manner different from
any other series of Preferred Stock; or

-18-

 

               (ii) amend this Section 7(a).

          (b) As long as any of the Series E Preferred Stock shall be issued and outstanding, 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 outstanding shares of the Series E Preferred
Stock:

               (i) declare or pay any distribution (as defined in Section 2(d) except for distributions upon
a liquidation or dissolution) with respect to the Common Stock or Preferred Stock of the
Corporation; or

               (ii) amend this Section 7(b).

          (c) As long as any of the Series E Preferred Stock shall be issued and outstanding, the
Corporation shall not, without first obtaining the approval (by vote or written consent as provided
by law) of the holders of at least 66 2/3% of the outstanding shares of the Series D Preferred
Stock and Series E Preferred Stock voting together as a single class on an as converted to Common
Stock basis:

               (i) increase or decrease (other than for decreases resulting from conversion of the Preferred
Stock) the authorized number of shares of Series E Preferred Stock;

               (ii) authorize or create (by reclassification or otherwise) any new class or series of capital
stock having rights, preferences or privileges with respect to dividends, payments upon liquidation
or other rights senior to or on a parity with the Series E Preferred Stock or with respect to
voting senior to the Series E Preferred Stock; or

               (iii) amend this Section 7(c).

     8. Amendments and Changes Requiring the Approval of the Series D Preferred Stock.

          (a) As long as any of the Series D Preferred Stock shall be issued and outstanding, the
Corporation shall not, without first obtaining the approval (by vote or written consent as provided
by law) of the holders of at least 60% of the outstanding shares of the Series D Preferred Stock:

               (i) amend, alter or repeal any provision of the Articles of Incorporation of the Corporation
if such action would adversely alter the rights, preferences, privileges or powers of, or
restrictions provided for the benefit of the Series D Preferred Stock in a manner different from
any other series of Preferred Stock; or

               (ii) amend this Section 8(a).

          (b) As long as any of the Series D Preferred Stock shall be issued and outstanding, 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 outstanding shares of the Series D Preferred
Stock:

-19-

 

               (i) increase or decrease (other than for decreases resulting from conversion of the Preferred
Stock) the authorized number of shares of Series D Preferred Stock;

               (ii) authorize or create (by reclassification or otherwise) any new class or series of capital
stock having rights, preferences or privileges with respect to dividends, payments upon liquidation
or other rights senior to or on a parity with the Series D Preferred Stock or with respect to
voting senior to the Series D Preferred Stock;

               (iii) declare or pay any distribution (as defined in Section 2(d) except for distributions
upon a liquidation or dissolution) with respect to the Common Stock or Preferred Stock of the
Corporation;

               (iv) increase the authorized number of directors of the Corporation above eleven (11); or

               (v) amend this Section 8(b).

     9. Amendments and Changes Requiring the Approval of the Series C Preferred Stock. As
long as any of the Series C Preferred Stock shall be issued and outstanding, the Corporation shall
not, without first obtaining the approval (by vote or written consent as provided by law) of the
holders of at least two-thirds (2/3) of the outstanding shares of the Series C Preferred Stock:

          (a) amend, alter or repeal any provision of the Articles of Incorporation of the Corporation
if such action would adversely alter the rights, preferences, privileges or powers of, or
restrictions provided for the benefit of the Series C Preferred Stock in a manner different from
any other series of Preferred Stock;

          (b) increase or decrease (other than for decreases resulting from conversion of the Preferred
Stock) the authorized number of shares of Series C Preferred Stock;

          (c) authorize or create (by reclassification or otherwise) any new class or series of capital
stock having rights, preferences or privileges with respect to dividends, payments upon liquidation
or other rights senior to or on a parity with the Series C Preferred Stock or with respect to
voting senior to the Series C Preferred Stock;

          (d) declare or pay any distribution (as defined in Section 2(d) except for distributions upon
a liquidation or dissolution) with respect to the Common Stock or Preferred Stock of the
Corporation;

          (e) increase the authorized number of directors of the Corporation above eleven (11); or

          (f) amend this Section 9.

     10. Amendments and Changes Requiring the Approval of the Series B Preferred Stock. As
long as any of the Series B Preferred Stock shall be issued and outstanding, the Corporation shall
not, without first obtaining the approval (by vote or written consent as provided by law) of the
holders of at least two-thirds of the outstanding shares of the Series B Preferred Stock:

-20-

 

          (a) amend, alter or repeal any provision of the Articles of Incorporation of the Corporation
if such action would adversely alter the rights, preferences, privileges or powers of, or
restrictions provided for the benefit of the Series B Preferred Stock in a manner different from
any other series of Preferred Stock;

          (b) increase or decrease (other than for decreases resulting from conversion of the Preferred
Stock) the authorized number of shares of Series B Preferred Stock; or

          (c) amend this Section 10.

     11. Status of Converted Stock. In the event any shares of Preferred Stock shall be
converted pursuant to Article 4 hereof, then the shares so converted shall be cancelled and shall
not be issuable by the Corporation. The Articles of Incorporation shall be appropriately amended
to effect the corresponding reduction in the Corporation’s authorized capital stock.

     12. Notices. Any notice required by the provisions of this Article IV to be given to
the holders of Preferred Stock shall be deemed given if deposited in the United States mail,
postage prepaid, and addressed to each holder of record at such holder’s address appearing on the
books of the Corporation.

ARTICLE V

     1. Limitation of Directors’ Liability. The liability of the directors of this
Corporation for monetary damages shall be eliminated to the fullest extent permissible under
California law.

     2. Indemnification of Corporate Agents. This Corporation is authorized to provide
indemnification of agents (as defined in Section 317 of the California Corporations Code) through
bylaw provisions, agreements with agents, votes of shareholders or disinterested directors or
otherwise, in excess of the indemnification otherwise permitted by Section 317 of the California
Corporations Code, subject only to the applicable limits set forth in Section 204 of the California
Corporations Code with respect to actions for breach of duty to this Corporation and its
shareholders.

     3. Repeal or Modification. Any repeal or modification of the foregoing provisions of
this Article V shall not adversely affect any right of indemnification or limitation of liability
permitted under California law relating to acts or omissions occurring prior to such repeal or
modification.

-21-

 

EXHIBIT
C

SCHEDULE
OF EXCEPTIONS

 

FLUIDIGM CORPORATION

SERIES E PREFERRED STOCK PURCHASE AGREEMENT

UPDATED SCHEDULE OF EXCEPTIONS

October 26, 2007

     FLUIDIGM CORPORATION, a Delaware corporation (the “Company”), hereby makes the
following exceptions and additional disclosure to the representations and warranties set forth in
Section 2 of the Series E Preferred Stock Purchase Agreement dated as of June 13, 2007 between the
Company and the Purchasers thereunder, as amended by that certain Amendment No.1 dated December 22,
2006, and further amended by Amendment No. 2 dated October 10, 2007 and Amendment No. 3 dated
October 26, 2007 (as amended, the “Agreement”). Except as otherwise defined herein, all
capitalized terms used herein shall have the meanings given them in the Agreement. The section
numbers below correspond to the section numbers of the representations and warranties in the
Agreement; provided that any information disclosed herein under any section number shall be deemed
to be disclosed and incorporated under any other section number under the Agreement where such
disclosure would be appropriate.

     Nothing in this Schedule of Exceptions is intended to broaden the scope of any representation
or warranty contained in the Agreement or to create any covenant. Inclusion of any item in this
Schedule of Exceptions (1) does not represent a determination that such item is material or
establish a standard of materiality, (2) does not represent a determination that such item did not
arise in the ordinary course of business, (3) does not represent a determination that the
transactions contemplated by the Agreement require the consent of third parties, and (4) shall not
constitute, or be deemed to be, an admission to any third party concerning such item. This
Schedule of Exceptions includes brief descriptions or summaries of certain agreements and
instruments, copies of which are available upon reasonable request. Such descriptions do not
purport to be comprehensive, and are qualified in their entirety by reference to the text of the
documents described.

     This Schedule of Exceptions reflects exceptions and additional disclosure to the
representations and warranties made by the Company set forth in Section 2 of the Agreement as of
October 26, 2007, and has not been updated for Subsequent Closings. The Purchaser acknowledges
that there may be changes to such exceptions and additional disclosure since October 26, 2007, and
accepts the Schedule of Exceptions as of October 26, 2007.

     2.1 Organization, Good Standing and Qualification

     On July 18, 2007, Fluidigm Corporation, a California corporation (“Fluidigm California”) was
merged with and into the Company, with the Company being the surviving corporation such that the
Company succeeded to all of Fluidigm California’s rights and obligations, including those under the
Purchase Agreement.

     2.3 Subsidiaries

     The Company has a wholly-owned subsidiary in Singapore, Fluidigm Singapore Pte. Ltd.

     The Company has a wholly-owned subsidiary in the Netherlands, Fluidigm Europe, B.V., which has
a wholly-owned subsidiary in France, Fluidigm France, S.A.R.L.

 

 

     The Company has a wholly-owned subsidiary in Japan, Fluidigm Japan K.K.

     2.4 Capitalization

     The Company has extended offers of option grants for up to approximately 200,000 shares of
Common Stock to certain of the Company’s employees and consultants in addition to the options that
are currently outstanding. In addition, the Company is currently negotiating or has entered into
agreements with consultants and employees for the issuance of options to purchase shares of the
Company’s Common Stock under the Company’s 1999 Stock Option Plan.

     In connection with a Development Collaboration and License Agreement (the “Collaboration
Agreement”) entered into on September 22, 2003 between the Company and Glaxo Group Limited
(“Glaxo”) and SmithKline Beecham Corporation (“SKB”), the Company issued warrants to purchase
90,000 shares of Series C Preferred Stock and 90,000 shares of Series C Preferred Stock to Glaxo
and warrants to purchase 110,000 and 110,000 shares of Series C Preferred Stock to SKB. One of the
warrants to purchase 90,000 shares of Series C Preferred Stock issued to Glaxo and one of the
warrants to purchase 110,000 shares of Series C Preferred Stock issued to SKB expired pursuant to
their terms and are not shown as outstanding in the Agreement.

     The Company entered into various agreements with Lighthouse Capital Partners V, L.P.
(“Lighthouse”) as described in Section 2.14 below. In connection with these transactions, the
Company borrowed $13,000,000 under the loan and security agreement and issued a warrant to
Lighthouse to purchase 371,428 shares of the Company’s Series D Preferred Stock. As of September
30, 2007, the Company owed approximately $9,601,037 under the notes.

     The Company is a party to a License Agreement between the Company and the California Institute
of Technology (“Caltech”) dated May 1, 2000, which was amended and restated in June 2002 effective
as of May 1, 2002, further amended in June 2003, with a restatement date of May 1, 2004, as further
amended March 29, 2007 (collectively, the “Caltech License Agreement”). Pursuant to the Caltech
License Agreement, the Company was obligated on an annual basis to issue to Caltech 50,000 shares
of the Company’s Common Stock on each occasion that the Company determined to add patent rights to
the license.

     The Company and Biomedical Sciences Investment Fund Pte Ltd. (“BMSIF”) are parties to a
Convertible Note Purchase Agreement dated as of December 18, 2003, as amended by Amendment No. 1 to
Convertible Note Purchase Agreement dated December 17, 2004 and as further amended by a letter
agreement dated June 30, 2005 (collectively, the “CNPA”). Pursuant to the CNPA, the Company
issued a Convertible Promissory Note, as amended by Amendment to Convertible Promissory Note dated
December 17, 2004, and as further amended by Amendment No. 2 to Convertible Promissory Note dated
June 30, 2005 (collectively, the “Note”) to BMSIF in exchange for $2,000,000. In December 2005,
upon the successful completion of certain specified milestones by the Company, the principal amount
of and the accrued interest under the Note were converted into 832,635 shares of Series D Preferred
Stock at a conversion price per share of $2.80.

     In addition, as a result of the Company’s achieving of such specified milestones, the Company
has required BMSIF to purchase an additional convertible promissory note (the “Supplemental Note”)
in the aggregate principal amount of $3,000,000 on June 20, 2006.

     The principal amount of and interest on the Supplemental Note was convertible into shares of
Series D Preferred Stock of the Company at a conversion price of $2.80 per share (subject to
adjustment) upon the earlier of an initial public offering in connection with which the Company’s

 

 

Preferred Stock has converted into Common Stock or the satisfaction of certain specified
milestones. In addition, BMSIF may electively convert the Supplemental Note into shares of Series
D Preferred Stock at any time. The principal amount and interest under the Supplemental Note could
not be prepaid except under limited circumstances. In July, 2007 upon completion of certain
specified milestones by the Company, the principal amount of and the accrued interest under the
Supplemental Note were converted into 1,157,142 shares of Series D Preferred Stock at a conversion
price per share of $2.80.

     The Company and Invus, L.P. are parties to a Convertible Note Agreement dated December 18,
2003, as amended by Amendment No. 1 to Convertible Note Agreement executed in November 2005 (the
“CNA”). The CNA provides that in the event the Company issues to BMSIF Supplemental Notes in the
aggregate principal amount of $3,000,000 upon the happening of certain events, Invus has the right
to purchase a convertible promissory note in the principal amount of $3,000,000 (the “Invus Note”)
from the Company. Recently, Invus, L.P. and the Company decided not to issue the Invus Note.

     The Company and BMSIF entered into a Convertible Note Purchase Agreement, dated as of August
7, 2006, as amended by that certain Letter Agreement dated November 15, 2006 and as further amended
by that certain Letter Agreement dated January 31, 2007 (as amended, the “2006 CNPA”). The 2006
CNPA permits the Company to borrow up to $15 million in three $5 million tranches, subject to
availability based on the achievement of specified milestones. The Company has sold and issued to
BMSIF all three convertible promissory notes, each in the principal amount of $5 million. The
initial two convertible promissory notes converted into 1,460,730 and 1,493,607 shares of Series E
Preferred Stock on March 31, 2007. Upon conversion of the second convertible promissory note,
BMSIF purchased the third (and final) convertible promissory note in the principal amount of $5
million.

     In March 2003, the Company entered into (i) a Master Closing Agreement (the “Master Closing
Agreement”) with Oculus Pharmaceuticals, Inc. (“Oculus”) and the University of Alabama Research
Foundation (“UABRF”); (ii) a License Agreement with UABRF; and (iii) a Sponsored Research Agreement
with UABRF. The Company is obligated to issue up to $2,100,000 of additional shares of its stock
to UABRF in connection with the satisfaction of certain milestones. If the Company is a private
Company at the time a milestone is achieved, upon achievement of a milestone, the Company is to
issue shares of the series of Preferred Stock that was issued in the Company’s most recent
financing and the shares are to be valued at the price the shares were sold in such financing. If
the Company is a public company at the time a milestone is achieved, upon achievement of a
milestone, the Company is to issue shares of Common stock valued at the average closing price of
the Company’s Common Stock over the five trading days preceding the achievement of the milestone.
In February 2005, UABRF sent a letter to the Company requesting issuance of the shares in relation
to the milestones. The Company replied in writing that the milestones had not been satisfied and
that it had no obligation to issue the shares at that time. The Company achieved a milestone in
2006 and as a result issued $600,000 worth of shares of its Series D Preferred Stock to UABRF and
other designated parties. Following the satisfaction of the milestone, the parties have been
negotiating the Company’s continuing obligations, if any, under the agreements identified above,
which may include an obligation on the part of the Company to issue additional shares of its stock
to UABRF.

     The Company is party to an offer letter with Richard DeLateur, the Company’s Chief Financial
Officer, which provides that in the event of a Change of Control (as defined in the offer letter)
50% of the shares subject to the option granted to Mr. DeLateur in connection with his acceptance
of

 

 

employment with the Company that are unvested at the time of such Change of Control shall
become immediately vested.

     The Company has approved an issuance of 6,000 shares of the Company’s Common Stock to Stanford
University. Such issuance has not been completed.

     See Section 2.10(f) regarding Dr. Stephen R. Quake.

     2.7 Government Consents

     The Company makes no representation or warranty with respect to any consent, approval, order
or authorization of, or registration, qualification, designation, declaration or filing with any
foreign governmental entity and has assumed for purposes of the Agreement that none of the
foregoing is required.

     2.8 Litigation

     See Section 2.10(a).

     The Company has received a letter from a supplier of certain materials used in the Company’s
Topaz and certain other products requesting that the Company cease and desist using a lid with the
materials or obtain a license from the supplier for using the design of the lid. Upon
investigation, the Company determined that it had developed the lid design independently from the
supplier and also began developing alternates to the materials, which are currently approved for
manufacturing. The Company wrote a letter explaining these opinions to the supplier and the
parties have been in negotiations regarding this matter resulting in the supplier providing a
proposed settlement agreement with a $55,000 buy-out option for the Company and the Company replied
with a revised draft settlement agreement. The Company is currently waiting for the supplier to
comment on the revised draft settlement agreement.

     2.9 Employees

     William Smith, the Company’s general counsel, is currently working for the Company and also
remains a partner at Townsend and Townsend and Crew LLP. Mr. Smith serves on the Board of
Directors of two private companies, Theracos Corporation and Arbor Vita Corporation.

     Richard DeLateur, the Company’s Chief Financial Officer, currently works four days a week and
it is anticipated that Mr. DeLateur’s service will decrease and his employment with the Company
will terminate. Mr. DeLateur and the Company do not have a schedule for the eventual termination
of Mr. DeLateur’s employment.

     2.10 Patents and Other Intangible Assets

     2.10(a)

     The Company has rights to the patents, trademarks and applications listed on Schedule
2.10 attached hereto, although some of the patent rights listed may not currently be being
utilized by the Company in, and may not be necessary for, the Company’s business as now conducted.
The Company’s registered domain names are fluidigm.com, fluidigm.net, fluidigm.biz, fluidigm.info
and mycometrix.com.

 

 

     The Company currently is selling two product lines: (i) the Topaz crystallization
microprocessors (also referred to as Integrated Fluidic Circuits or IFCs) and certain associated
apparatuses; and (ii) the BioMark System, including certain IFCs, such as Dynamic Array chips,
Digital Array chips (also referred to as DID chips) and ImmunoMatrix chips, as well as certain
associated apparatuses. The Company has not completed investigations with respect to the
Intellectual Property Rights required for the BioMark System product line or for additional
applications of the Company’s technology. In conjunction with this analysis, the Company has
sought and will continue to seek opinions from counsel with respect to potentially relevant third
party patent rights directed to, e.g., certain RealTime PCR and other PCR reagents and instruments,
such as assigned to Roche Molecular Systems and/or Applied BioSystems, an Applera Corporation
Business. The Company, therefore, may need to acquire additional Intellectual Property Rights to
pursue those lines of business, particularly with respect to microfluidic devices for PCR and other
assays, although the Company has not presently determined that blocking Intellectual Property
Rights of others exist in this regard.

     The Company has entered into a Collaboration Agreement dated January 24, 2005 (the “CTI
Collaboration Agreement”) with CTI Molecular Imaging, Inc. (subsequently acquired by Siemens)
(“CTI”), under which the parties are to develop microfluidic chips and associated apparatuses for
use in positron emission tomography (“PET”). Under the CTI Collaboration Agreement, both CTI and
the Company have granted licenses to the other as necessary to conduct the research and development
program contemplated by the CTI Collaboration Agreement. The Company has also granted CTI an
option under certain of the Company’s intellectual property to manufacture chips developed during
the collaboration. The Company also has rights to intellectual property developed under the
Collaboration Agreement, subject to certain restrictions under which CTI and certain other
collaborating entities have specified rights in the defined PET and associated fields. Recently,
Siemens notified the Company that it does not intend to exercise the option or continue the
research and development program. Discussions are underway relating to the early termination of
the Collaboration Agreement, and for the Company to obtain all rights to intellectual property
developed under the CTI Collaboration Agreement, including intellectual property rights arising
from (i) a patent application filed by Siemens and Caltech in which the Company believes that
certain Company scientists should have been named as co-inventors; (ii) additional patent
applications in the PET field allegedly filed by or on behalf of Siemens potentially with Caltech
inventors; and (iii) CTI activities with third parties. The Company and Siemens have agreed
starting in 2007 to not engage in further funded research under the CTI Collaboration Agreement.

     The Company is licensee under a series of agreements with the President and Fellows of Harvard
College, under which the Company pays royalties to Harvard. The Company renegotiated the terms of
its agreements with Harvard and reduced the number of licenses from five to three, effective in
January 2005. The Company and Harvard will be discussing potential royalty obligations of the
Company to Harvard relating to transactions where the Company has received revenue but has not
directly charged for product transfers, such as for certain microfluidic chips.

     In January 2003, the Company entered into a Patent License Agreement with Gyros pursuant to
which the Company received a non-exclusive license to certain patents from Gyros relating to the
Company’s products. In exchange for the license, the Company has made certain payments to Gyros.
In January 2004, the Company exercised an option to add an additional field of use to the scope of
the license agreement in exchange for a cash payment. In January 2007, the Company did not elect
or pay for another additional field for, e.g., ImmunoMatrix chips, for which the Company has
conducted and is continuing to conduct research and development activities. The Company and Gyros
have had discussions regarding the extension of the field and Gyros has offered such extension
pursuant to the terms of the Patent License Agreement. In addition, the Company is obligated to
make royalty

 

 

payments on certain Company products incorporating the technology licensed from Gyros. The
amounts otherwise paid by the Company may be used as a credit with respect to the royalty payments.
The agreement provides for certain indemnity obligations of the Company.

     With respect to certain patent filings then-controlled by Oculus Pharmaceuticals with
overlapping claims to the Syrrx patent referred to in the paragraph below, the Company entered into
in March 2003 (i) the Master Closing Agreement; (ii) a License Agreement with UABRF (the “UABRF
License Agreement”); and (iii) a Sponsored Research Agreement with UABRF. The license is an
exclusive license, subject to certain exceptions (including rights UABRF may have previously
granted Diversified Scientific, Inc. so that Diversified Scientific could perform research
obligations under grants). UABRF and affiliated entities have the right to internal use of the
intellectual property rights and to fulfill obligations under a National Institutes of Health
grant. Pursuant to the Master Closing Agreement, the Company made an up-front payment to UABRF and
granted UABRF shares of the Company’s Series C Preferred Stock. The Company is obligated to issue
additional shares of its stock to UABRF in the event certain milestones are achieved as described
in Section 2.4 hereof. In connection with the satisfaction of a milestone, the Company may become
obligated to enter into a non-transferable site license so that an entity will have the right to
use the technology licensed to the Company for internal drug discovery efforts. Pursuant to the
Sponsored Research Agreement, the Company agreed to support a UABRF research program. The
Sponsored Research Program Agreement contains certain terms relating to the license of intellectual
property rights arising out of the program. The Company has certain indemnification obligations
pursuant to the agreements referred to in this paragraph.

     In conjunction with the development of the Company’s protein crystallization microprocessor
prototype, the Company became aware of U.S. Patent no. 6,296,673, issued to the Regents of the
University of California (the “Regents”) and apparently exclusively licensed to Syrrx Corporation
(note: Sam Colella of Versant Ventures, Chairman of the Company’s Board of Directors, used to be
Chairman of Syrrx, which has been acquired by Takeda Pharmaceutical Company Limited). Based on
Syrrx’s contentions of infringement with respect to the patent, related patent applications and the
Company’s products, the Company has sought and obtained a patent opinion from counsel with respect
to the patent and entered into license negotiations with Syrrx for a license/sublicense to the
patent and other patent filings assigned to the Regents and Syrrx. In December 2003, the Company
entered into a license agreement with Syrrx (the “Syrrx License Agreement”), pursuant to which, in
exchange for a field restricted and nonexclusive license under intellectual property owned or
controlled by Syrrx, the Company issued Syrrx shares of the Company’s Common Stock, made an
up-front payment and annual minimum payments. In addition, the Company is obligated to pay a
royalty in connection with the sale of certain products of the Company that incorporate the
intellectual property licensed and is obligated to indemnify Syrrx for matters relating to the
practice by the Company of any license or sublicense under the agreement. In January 2006, an
interference was declared by the USPTO between a patent application licensed to the Company under
the UABRF License Agreement and the above-identified patent and other related patents. While the
interference was ongoing, the Company, Syrrx, UABRF and Athersys, Inc. (a company that allegedly
acquired certain rights from Oculus) were in negotiations to settle the interference and modify the
parties’ obligations under the Syrrx License Agreement, the Master Closing Agreement, and the UABRF
License Agreement. Recently, in an appealable decision, the USPTO invalidated all claims of both
parties in the interference, and Syrrx decided not to appeal. Due to this decision and these
negotiations, the Company may decide not to maintain the Syrrx License Agreement in 2008.

     The Company is aware of patents and patent applications controlled by Micronics Corporation
and Diversified Scientific, Inc. that potentially relate to the Company’s protein crystallization
product

 

 

line. The Company has sought and obtained opinions from patent counsel regarding such patents
and has conducted preliminary discussions with each of these entities regarding the possibility of
obtaining a license to the relevant intellectual property. The necessity of obtaining a license
from each and the outcome of such negotiations remain uncertain although in certain Micronics
patent applications watched by the Company, the claims have been amended to not cover the Company’s
protein crystallization product line. In February 2005, Diversified Scientific announced a plan to
auction its recently broadened (by USPTO re-examination) patent and other intellectual property
related to crystal image analysis. The Company indicated interest to Diversified Scientific in
submitting a bid. Diversified Scientific replied that it would respond to the Company and
additional interested bidders after checking with their counsel on certain legal issues relating to
the apparently improper broadening of patents by re-examination. The Company has not received a
further response from Diversified Scientific.

     With respect to the patents and patent filings described in the foregoing paragraph, those
relating to the BioMark System described above and those not subject to the CTI Collaboration
Agreement, there can be no assurance that the Company will be able to obtain licenses on terms
acceptable to the Company. In addition, there can be no assurance that the holders of such patents
or patent filings will not initiate and prevail in litigation against the Company with respect to
the patents or patent filings.

     The Company routinely investigates patents held by third parties to determine whether there
may be any conflict with the Company Intellectual Property Rights. While such investigations are
ongoing, the Company is not currently aware of any conflict except as disclosed herein.

     With respect to certain microfluidics protein crystallization technology licensed to the
Company from Caltech, a University of California scientist, Dr. James Berger, is a co-inventor of
this technology along with certain Caltech scientists. Therefore, the Regents of the University
of California own certain rights in the invention which the Company understands have been licensed
to Caltech. The Company has sublicensed these rights from Caltech. As the Company is a
sublicensee, if Caltech’s license from the Regents were to be revoked or terminated for any reason,
the Company’s ability to practice and license this technology internationally would be subject to
certain limitations.

     See also the discussion of the possible new collaboration agreement in Section 2.17 below, the
Company’s license agreement with Caltech in Section 2.10(b) below and the discussion of the
Company’s letter from a supplier in Section 2.8 above.

     2.10(b)

     See Section 2.10(a) above and Schedule 2.10 attached hereto. In addition, in
connection with sales of the Company’s products, the Company’s standard terms and conditions
include limited licenses to use the Company’s products, including licenses to the Company’s
software. The Company also has entered into (i) several prototype and other evaluation agreements
and material transfer agreements with third parties, which agreements provide for the third party’s
use of the Company’s products for a limited period of time typically in return for grant-back
licenses to the Company of improvements, and (ii) material transfer agreements in which the parties
may assign to each other certain intellectual property rights. The Company has sold BioMark System
prototypes and products and is entering into agreements with respect to additional sales,
evaluations and development agreements relating to the BioMark System. The Company typically
negotiates either standstill, grant-back or other rights to certain inventions made by the Company
or third parties using the prototypes. The Company intends to continue to negotiate collaboration
or other agreements with third parties.

 

 

     The Exclusive Patent License Agreement dated November 2, 2000 with the Regents listed in
Schedule 2.10 requires the Company to make efforts to commercialize products relating to
the technology licensed to the Company. The Regents sent the Company a notice of termination of
the agreement in part due to the alleged failure of the Company to make such efforts. The Regents
rescinded the notice of termination and the Company intended to renegotiate the agreement to modify
the requirement that the Company make efforts to commercialize the technology. The Company has
received a request from the Regents for reports and diligence relating to the agreement. The
Company and Regents agreed to terminate the agreement with no further obligations of either party.

     In connection with entering into the most recent amendment to the Caltech License Agreement,
and in response to a request from Caltech, the Company terminated its license of certain patent
rights that it deemed not material to the Company’s business as currently conducted in exchange for
a cash payment from Caltech and a reduction in the Company’s potential obligation to issue stock to
Caltech. The Company understands that Caltech has licensed these patent rights to another entity,
Helicos Biosciences Corporation. Dr. Steve Quake, a former director of and former consultant to
the Company, co-founded Helicos, and Versant Ventures, a significant investor in the Company, is
also a significant investor in Helicos. The Company believes that a conflict could exist between
the license Caltech granted to Helicos and Caltech’s license of patent rights to the Company, if
Caltech’s license with Helicos does not specifically exclude the patent rights granted to the
Company. The patent rights licensed from Caltech to Helicos include a cross-reference to, and
disclosure relating to, the patent rights the Company licenses from Caltech. Effective April 23,
2007, as amended May 11, 2007, the Company executed an Intellectual Property Agreement with Caltech
and Helicos.

     2.10(c)

     See discussions in Sections 2.10(a) and (b) above.

     2.10(d)

     The Company utilizes certain inventions developed by Steve Quake (See discussions in Section
2.10(f) below) prior to the formation of the Company and the inventions of certain employees
developed while they were working or studying at Caltech. The Company has rights to these
inventions pursuant to its license agreements with Caltech described in Schedule 2.10
attached hereto.

     See discussion in Section 2.9 relating to William Smith. Townsend and Townsend and Crew LLP
from time to time provides legal services to Caltech and other parties with whom the Company has
business relationships.

     2.10(e)

     See discussion in Section 2.10(b).

     Steve Quake and certain employees of the Company who previously worked at or studied at
Caltech have a right, pursuant to their agreements with Caltech, to receive a portion of the
royalties Caltech receives under its license agreements with the Company described in Schedule
2.10 attached hereto.

     The Company has license agreements with shareholders of the Company. Those license agreements
are listed on Schedule 2.10 attached hereto.

 

 

     The Company’s employees have executed proprietary information and invention assignment
agreements in favor of the Company. The Company has executed consulting agreements with its
consultants and non-disclosure agreements with third parties.

     From time to time university collaborators may be on the Company’s premises conducting
research with the Company’s chips. The Company typically does not enter into agreements relating
to these arrangements. The Company has entered into an agreement with a collaborator from Regents.

     2.10(f)

     See discussion in Sections 2.10(a), 2.10(b) and Section 2.10(e).

     The Company’s rights with respects to the research and development efforts of Steve Quake are
limited to those rights it has obtained through its licenses with Caltech described in Schedule
2.10 attached hereto and its consulting agreement with Steve Quake. As Dr. Quake has
transferred to Stanford University effective in early 2005, the Company negotiated with Caltech to
modify the Company’s right to receive license rights from the Quake laboratory at Caltech. The
Company also has negotiated a Material Transfer Agreement with Stanford University to obtain, for a
limited term, license rights to certain inventions made by the Quake laboratory at Stanford
University and is in negotiations for additional such agreements. Dr. Quake has been appointed an
investigator by the Howard Hughes Medical Institute (“HHMI”). In connection with such appointment,
Dr. Quake’s affiliation with the Company (including, without limitation, stock ownership and status
as a member of the Board of Directors of the Company) and the Company’s rights to inventions from
the Quake laboratory at Stanford University and Caltech have been eliminated or substantially
curtailed. The Company has negotiated a new consulting agreement with Dr. Quake in accordance with
HHMI guidelines; such consulting agreement provides for certain guaranteed payments over a
multi-year time period. In addition, Dr. Quake has resigned from the Company’s Board of Directors
and on June 5, 2006 the Company has repurchased 123,974 shares of Dr. Quake’s Common Stock holding
in the Company to comport with HHMI guidelines.

     2.10(h)

     The Company notes that it has given the opportunity to the Purchasers to conduct any due
diligence investigation that such Purchasers deemed necessary and has provided each Purchaser with
all of the information that such Purchaser has requested.

     2.11 Compliance with Other Instruments

     See discussions in Section 2.10(a) regarding the Syrrx License Agreement and in Section
2.10(b).

     2.12 Permits

     The Company’s subsidiary in Singapore has applied for various permits relating to the conduct
of business in Singapore, some of which may not been granted.

     2.13 Environmental and Safety Laws

     The Company has received the following environmental reports pertaining to property that the
Company leases.

 

 

	 	1.	 	ENVIRONMENTAL DUE DILIGENCE REVIEW OF THE SIERRA POINT ASSOCIATES
TWO PROPERTIES BRISBANE AND SOUTH SAN FRANCISCO, CALIFORNIA, dated February 4,
1998, prepared by ENVIRON Corporation, Emeryville, California
	 
	 	2.	 	UPDATE OF ENVIRONMENTAL DUE DILIGENCE REVIEW, PARCEL 10,
SHORELINE COURT, SIERRA POINT, SOUTH SAN FRANCISCO, CALIFORNIA, dated December
14, 1998, prepared by Harding Lawson Associates, Novato, California
	 
	 	3.	 	FIRST AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS
AND ENVIRONMENTAL RESTRICTIONS RELATING TO ENVIRONMENTAL COMPLIANCE FOR SIERRA
POINT, dated August 5, 1999, recorded by Luce, Forward, Hamilton and Scripps,
San Diego, California
	 
	 	4.	 	SUPPLEMENTAL ENVIRONMENTAL DUE DILIGENCE, PARCEL 10, SHORELINE
COURT, SIERRA POINT, SOUTH SAN FRANCISCO, CALIFORNIA, dated August 24, 1999,
prepared by Harding Lawson Associates, Novato, California

     Each of the reports has been made available to the Purchasers. The Company has not
investigated any of the matters contained in the reports.

     2.14 Title to Property and Assets

     The Company and General Electric Capital Corporation (“GECC”) entered into a Master Security
Agreement (which was amended in February 2004), pursuant to which the Company has borrowed an
aggregate principal amount of $6,230,152 (out of an aggregate available under the Master Security
Agreement of $11,000,000) from GECC pursuant to the terms of the Master Security Agreement and
series of promissory notes. The loans relate to purchases of the Company of certain equipment and
software (subject to certain restrictions). The notes bear interest at rates between 8% and 9% per
annum and are repaid in periodic monthly installments over 42 months from the date of issuance of
each respective promissory note (except with respect to loans relating to computer equipment and
software, which must be paid over 36 months). The Company’s obligations under the notes and Master
Security Agreement are secured by a lien on fixed assets financed with the loans. In addition,
Comerica Bank has issued a letter of credit in the amount of $500,000 for the benefit of GECC as
security for the loans, which is secured by a $500,000 cash account of the Company’s at Comerica
Bank. As of September 30, 2007, the Company owed approximately $1,340,433 under the notes.

     In March 2005, the Company and Lighthouse entered into a Loan and Security Agreement, a
Management Rights letter agreement, a Negative Pledge Agreement and certain other agreements
(collectively, the “Lighthouse Agreements”). Pursuant to the Lighthouse Agreements, the Company
has borrowed $13,000,000 from Lighthouse, $9,601,037 of which was outstanding as of September 30,
2007. The amounts loaned bear interest at the prime rate plus 2.5% and are to be repaid in 48
monthly installments from the execution date of March 2005. Pursuant to the Loan and Security
Agreement, the Company granted Lighthouse a lien on and security interest in all of the Company’s
assets (subject to certain limited exceptions and excluding intellectual property rights (but not
proceeds from the sale thereof) as set forth in the Lighthouse Agreements). Pursuant to the
Negative Pledge Agreement, the Company is generally prohibited from transferring or encumbering
intellectual property and certain other assets. The Lighthouse Agreements contain various
affirmative and negative covenants of the

 

 

Company. In connection with the Lighthouse Agreements, the Company issued to Lighthouse a
warrant as described in Section 2.4 hereof. The Company’s ability to pay amounts that may arise
under convertible promissory notes issued, or that may be issued, to BMSIF and Invus is limited
under the Lighthouse Agreements, and BMSIF and Invus entered into a Subordination Agreement with
Lighthouse (which limits their right to receive payment on the convertible promissory notes).

     The Company has issued letters of credit of $250,000 and $137,527 for security deposits under
the subleases for its headquarters facility in South San Francisco, California (see Section
2.15(b)). In addition, the Company has issued a letter of credit for the benefit of GECC in the
amount of $500,000. These letters of credit are secured by cash accounts of the Company in those
amounts.

     2.15 Agreements; Actions

     2.15(a)

     The Company has been a party to consulting agreements with Lincoln McBride, the Company’s
former Chief Technology Officer and vice president of engineering, and Paul Wyatt, the Company’s
former vice president of Topaz development and operations.

     See 2.10(f) regarding Dr. Steve Quake’s consulting agreements.

     The Company has entered or intends to enter into indemnification agreements with each of the
Company’s existing officers and directors.

     The Company is a party to offer letters with each of its officers.

     The Company has entered into agreements relating to confidentiality and assignment of
inventions with employees and enters into various agreements with employees of its subsidiaries
(including, without limitation, employment agreements) customary in the jurisdiction of
incorporation of the subsidiary.

     The Company and/or a subsidiary of the Company have entered into agreements with third parties
relating to their service on the Board of Directors of subsidiaries of the Company (due to
requirements that a citizen of the place of incorporation of the subsidiary be a member of the
subsidiary’s Board of Directors). Among other things, such agreements contain provisions relating
to indemnification.

     The Company has entered into a letter agreement with Marc Unger, an employee, regarding Mr.
Unger’s ownership of shares and options to purchase shares of the Company’s Common Stock.

     In connection with the October 2001 Series C Preferred Stock financing, the Company entered
into letter agreements with GE Equity Capital Investments, Inc., containing certain confidentiality
and indemnification provisions and with Piper Jaffray Healthcare Venture Fund III, L. P. providing
for certain matters with regard to the Small Business Investment Act.

     In January 2004, the Company lent Gajus V. Worthington, the Company’s Chief Executive Officer,
$250,000 to be used in connection with Mr. Worthington’s purchase of a residence. The loan bears
interest at a rate of 3.52% per annum and the principal and interest are not due and payable for 7
years after the date of the loan (or earlier upon the happening of certain events). The loan is
secured by 833,334 shares of the Company’s Common Stock, which are the only recourse of the Company
in the event of a default under the loan. The number of shares of Common Stock that secure the
loan is

 

 

subject to reduction at Mr. Worthington’s election in the event that fair market value of the
Company’s Common Stock (as determined by the Company’s Board of Directors) exceeds the outstanding
principal and interest due under the loan.

     See Sections 2.4 and 2.15(b) below relating to agreements with BMSIF.

     2.15(b)

     See Schedule 2.10 attached hereto and discussion in Section 2.10. Each of the
agreements described or listed on Schedule 2.10 or in Section 2.10 may involve payments or
obligations in excess of $100,000 and/or the license of proprietary rights.

     See Section 2.14 regarding the GECC and Lighthouse loans.

     In March 2004, the Company entered into a new sublease agreement with Genome Therapeutics
Corporation (now Oscient Pharmaceuticals) relating to a portion of the Company’s headquarters in
South San Francisco, California. The term of the sublease expires in December 2007. The monthly
rental payments were approximately $70,000 per month between March 2004 through September 2004.
The monthly payments thereafter decreased to approximately $44,000 per month and increased
approximately 3.5% annually beginning January 2006. In addition to these amounts, the Company is
obligated to pay its share of common area maintenance and other costs and taxes.

     In addition to the sublease agreement with Genome Therapeutics, the Company entered into a
second sublease in March 2004 with MJ Research, Inc. (subsequently assigned to Are-San Francisco
No. 17, LLC) relating to an additional portion of the Company’s headquarters in South San
Francisco, California. The term of the sublease expires in December 2007. The monthly rental
payments were approximately $56,000 between April 2004 through December 2004. The monthly payments
thereafter increased to approximately $58,000 per month and further increase annually by
approximately 3.5% beginning in April 2005. In addition to these amounts, the Company is obligated
to pay its share of common area maintenance and other costs and taxes.

     The Company has entered into negotiations to extend each of the above leases from January 2008
to February 2011.

     The Company has entered into leases or subleases relating to its subsidiaries in Osaka, Japan,
Tokyo, Japan, Singapore and Hamburg, Germany, the last of which has terminated.

     See Section 2.4, in particular with respect to the Company and BMSIF in conjunction with the
convertible notes.

     In certain instances, the Company has agreed to indemnify purchasers of the Company’s products
and certain of the Company’s suppliers (such as Eppendorf AG) with respect to infringements of
proprietary rights.

     2.15(e)

     A limited number of the Company’s employees hold corporate purchasing credit cards. The
Company is liable to the credit card company for the amounts charged.

     2.15(f)

 

 

     The Company has from time to time had discussions regarding mergers, acquisitions and sales of
all or substantially all of the assets of the Company.

     2.16 Financial Statements

     The Company has made available unaudited Financial Statements for the periods ended December
31, 2005 and December 31, 2006.

     The unaudited Financial Statements do not contain the footnotes required by generally accepted
accounting principles and are subject to year-end audit adjustments.

     2.17 Changes

     Changes are reflected since December 31, 2007.

     See Section 2.10 and Schedule 2.10 attached hereto.

     The Company has entered into licenses of its intellectual property in the ordinary course of
business.

     The Company may enter into a collaboration agreement related to the development of certain
specialized Dynamic Array chips for a third party that may involve revenue and liabilities in
excess of $100,000, such as for indemnification.

     2.18 Brokers or Finders

     The Company entered into an engagement letter with Leerink Swann & Company, dated August 13,
2007.

     In June 2006, Fluidigm was the recipient of a Small Technology Transfer Innovation Research
(STTR) grant from the National Institutes of Health in the amount of $1,000,000 over two years.
Under the grant, the Company will perform research and development activities to design a
diffraction capable Topaz screening chip.

     2.19 Qualified Small Business Stock

     With respect to the qualification of the Shares as “qualified small business stock” under
Section 1202(c) of the Code, the Company makes the following representations, each as of the date
hereof: (a) the Company is a domestic C corporation, provided that the Company wholly owns non-U.S.
corporate subsidiaries; (b) the Company’s gross assets have not exceeded $50 million in value at
any time through the time immediately following the issuance of the Shares within the meaning of
Section 1202(d); (c) the Company has not made any purchases of its own stock during the one-year
period preceding the Closing with an aggregate value exceeding 5% of the aggregate value of all its
stock as of the beginning of such period, disregarding de minimus redemptions within the meaning of
Treasury Regulation Section 1.1202-2(b)(2); (d) the Company is engaged in a qualified trade or
business as defined in Section 1202(e); and (e) 80% of the Company’s assets are used in the active
conduct of that qualified trade or business.

     2.20 Employee Benefit Plans

     The Company offers health, vision and dental benefits, paid time off and sick leave.

 

 

     The Company’s subsidiaries are subject to certain statutory requirements in their jurisdiction
of incorporation relating to employee benefits. Such requirements differ from requirements in the
United States.

     2.21 Tax Matters

     The Company’s subsidiaries in the Netherlands and Singapore have received extensions to file
tax returns in the respective countries.

     2.24 Disclosure

     The Company notes that it has given the opportunity to the Purchasers to conduct any due
diligence investigation that such Purchasers deemed necessary.

     The Company has provided projections to certain Purchasers at their request. For purposes of
these projections, the Company has assumed, among other things, that the Company is granted tax
incentives and research and development grants in Singapore that are acceptable to the Company and
that the workforce to be employed at the Company’s subsidiary in Singapore is capable of delivering
upon the Company’s plans in Singapore. In addition, the Company’s revenues were lower than the
Company’s plan/forecasts. Moreover, actuals provided are currently under audit and subject to
revision. The Company is unable to predict with any certainty its revenue for any future period,
including the present quarter, and its ability to generate revenue is subject to risks and
uncertainties.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	License Agreement

Amended and
Restated License
Agreement

First Amendment to
Amended and
Restated License
Agreement

Second Amended and
Restated License
Agreement

	 	May 1, 2000

Restatement Date of
June 1, 2002

Effective Date of
June 19, 2003

Effective Date May
1, 2004
	 	California
Institute of
Technology
(Licensor) and the
Company (Licensee)
	 	Exclusive license
of intellectual
property from
Licensor to the
Company
	 	The Company to pay
Licensor royalties
ranging from [***]% to
[***]% on sales of the
Company products
incorporating the
technology or other
transfers of the
technology.

Also, the Company can
include, on an annual
basis, certain new
inventions made by
the Licensor by
granting additional
stock to the
Licensor.
	 	The U.S. Government
and Licensor
retained certain
rights, including
the right to
practice the
underlying
inventions. With
respect to the
Licensor, such
rights are limited
to non-commercial
uses.

In an invention
licensed pursuant
to this License
Agreement relating
to certain protein
crystallization
technology in
microfluidics, a
University of
California
scientist, Dr.
James Berger, was
added as an
inventor to related
patent
applications.
Therefore, the
Regents of the
University of
California own
certain rights in
the invention,
which rights have
not been licensed
to the Company,
and, therefore, the
Company’s ability
to practice and
license this
technology
internationally is
subject to certain
limitations.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Exclusive Patent 

License Agreement

	 	November 2, 2000

Amended on July 12,
2001
	 	The Regents of the
University of
California
(Licensor) and the
Company (Licensee)
	 	Exclusive license
of intellectual
property from
Licensor to the
Company
	 	The Company to pay
Licensor [***]% royalty
on sales of the
Company products
incorporating the
technology.
	 	The Licensor and
the U.S. Government
retains certain
rights, including
the right to
practice the
underlying
inventions. With
respect to the
Licensor, such
rights are limited
to non-commercial
uses.

In addition, the
Company has agreed
to indemnify
Licensor for claims
arising out of the
agreement.

This Agreement has
been terminated.
	 
	 	 	 	 	 	 	 	 	 	 
	Co-Exclusive 

License Agreements
(a series totaling
3)
[reduced from 5]

	 	October 15, 2000
	 	President and
Fellows of Harvard
College (Licensor)
and the Company
(Licensee)
	 	Co-exclusive
license of
intellectual
property from
Licensor to the
Company
	 	The Company to pay
Licensor royalties
ranging from [***]% to
[***]% on sales of the
Company products
incorporating the
technology or other
transfers of the
technology.
	 	The Licensor and
the U.S. Government
retains certain
rights, including
the right to
practice the
underlying
inventions. With
respect to the
Licensor, such
rights are limited
to non-commercial
uses.

In addition, the
Company has agreed
to indemnify
Licensor for claims
arising out of the
series of
agreements.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	License Option 

Agreement

	 	July 20, 2001
	 	Princeton
University and the
Company
	 	Grant of option to
Company to
negotiate a
royalty-bearing
license to certain
technologies in
exchange for paying
reasonable
associated patent
costs
	 	N/A
	 	The Company expects
that the U.S.
Government will
retain certain
rights, including
the right to
practice the
underlying
inventions.

The option period
has expired and the
Company has funded
certain
prosecution. The
Company did not
renew the option.
	 
	 	 	 	 	 	 	 	 	 	 
	Agreement

	 	July 1, 2002
	 	Farmal LLC and the
Company
	 	Research Agreement 
	 	See Other Information
	 	Farmal was to
conduct research at
Caltech within the
Company’s field of
exclusivity under
its license
agreement with
Caltech. The
agreement contains
a license to the
Company of
intellectual
property resulting
from certain
aspects of the
research, but the
Company is
uncertain whether
any intellectual
property was
created. Farmal is
not presently
performing under
the agreement due
to its financial
condition and the
agreement has
terminated.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Supply Agreement

	 	December 3, 2001

Amended June 27,
2002
	 	GlaxoSmithKline and
the Company
	 	The Company has
supplied equipment
and chips to GSK
	 	The Company had

received payments in

exchange for chips
	 	The Company
provided certain
indemnities
(including relating
to the infringement
of proprietary
rights) to GSK
associated with the
product sales.
	 
	 	 	 	 	 	 	 	 	 	 
	Development
Collaboration And 

License Agreement

	 	September 22, 2003
	 	Glaxo Group Limited
and SmithKline
Beecham Corporation
(GSK) and the
Company
	 	A collaboration and
cross-licenses
agreement for the
development of
certain products,
which may be
commercialized by
the Company
	 	In addition to an
up-front stock grant,
the Company issued
warrants to GSK
exercisable upon
achievement of
certain milestones.
Also, the Company
agreed to pay
royalties on products
emanating from the
collaboration.
	 	The Company
provides certain
indemnities
(including relating
to the infringement
of proprietary
rights) to GSK
associated with
activities in
accordance with the
Agreement.

Discussions between
the Company and GSK
have begun to
ascertain milestone
achievement and
other matters.
	 
	 	 	 	 	 	 	 	 	 	 
	Supply Agreement

	 	September 22, 2003
	 	GlaxoSmithKline
Research &
Development Limited
(GSK) and the
Company
	 	The Company has
supplied equipment
and chips to GSK 
	 	GSK made an up-front
payment to the
Company for future
product orders.
	 	The Company
provides certain
indemnities to GSK
associated with the
product sales, as
well as a [***]
clause with respect
to infringement
indemnity in an
accompanying stock
purchase agreement.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	License Agreement

Amendment No. 1

	 	January 9, 2003

January 9, 2005
	 	Gyros AB and the
Company
	 	The Company
licensed

field-specific
patent rights from
Gyros
	 	In addition to annual
minimums and payments
to add licenses in
several fields, the
Company pays a [***]%
royalty on certain
products.
	 	The Company
provides certain
indemnities to
Gyros associated
with licensed
product sales. See
the disclosure in
Section 2.10(a) of
this Schedule of
Exceptions for a
further description
of the agreement.
	 
	 	 	 	 	 	 	 	 	 	 
	Master Closing 

Agreement

	 	March 7, 2003
	 	UAB Research
Foundation, Oculus
Pharmaceuticals,
Inc. and the
Company
	 	Relates to the
License Agreement
and Sponsored
Research Agreement
with UAB Research
Foundation
described below
	 	The Company issued
shares of its stock
to the UAB Research
Foundation in
connection with the
transaction and is
obligated to make
milestone payments of
stock and cash to UAB
Research Foundation
upon the happening of
certain events.
	 	See Section 3.10(a)
and 2.4 of this
Schedule of
Exceptions relating
to the Company’s
agreements with UAB
Research Foundation
and Oculus.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	License Agreement

	 	March 7, 2003
	 	UAB Research
Foundation
(Licensor) and the
Company
	 	The Company is
licensing certain
patent rights from
Licensor 
	 	When due, the Company
will make milestone
payments to Licensor
in stock in addition
to cash and stock
payments up-front. 
	 	The Licensor, the
U.S. Government and
a third party
retain certain
rights to practice
the underling
inventions with
respect to
Licensor, such
rights are limited
to non-commercial
uses.

In addition, the
Company has agreed
to indemnify
(including relating
to infringement of
proprietary rights)
Licensor under
certain conditions.
	 
	 	 	 	 	 	 	 	 	 	 
	Sponsored Research 

Agreement

	 	March 7, 2003
	 	UAB Research
Foundation (UAB)
and the Company
	 	The Company funds

certain research at

UAB
	 	The Company makes
quarterly research
payments.
	 	The Company has
rights to license
inventions
developed under the
funding.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Research License 

Agreement

	 	August 2, 2002
	 	Vanderbilt
University
(University) and
the Company
	 	The Company
sub-licensed the
University to
conduct research
under certain
Caltech
intellectual
property
	 	The Company received
a license to certain
intellectual property
for research purposes
and was granted a
right of first
refusal on
improvements to the
intellectual property
it licensed to the
University (including
improvements to
chips). In the event
the Company exercises
its right of first
refusal, it will have
to pay certain
royalties and license
fees against a
credit.
	 	The Company will
consider proposals
from the University
to commercialize
products developed
at the University.
The agreement had a
three-year term and
the parties are
discussing an
extension.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	December 12, 2003
	 	[***]	 	The Company is
testing proprietary
materials
	 	N/A
	 	The Company has
agreed to indemnify
the material
provider under
certain conditions
and not to file for
patent protection
encompassing the
material in certain
areas.

 

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	License Agreement

	 	December 19, 2003
	 	Syrrx, Inc. (Syrrx)
	 	The Company
licensed certain
patent filings
assigned to Syrrx
and sublicensed
patent filings
assigned to the
Regents of
University of
California in a
specific field.
	 	The Company granted
common stock to Syrrx
and makes annual
payments for three
years (then quarterly
thereafter), which
payments may be
reduced if the
Company’s common
stock is traded on a
securities exchange
or through NASDAQ.
The Company also owes
royalties on the
license and
sublicense.
	 	The Company
provides certain
indemnities to
Syrrx associated
with the license
and sublicense.
	 
	 	 	 	 	 	 	 	 	 	 
	Development 

Agreement

	 	June 23, 2004
	 	In-Q-Tel and the
Company
	 	The Company
provides defined
services and
deliverables in
accordance with a
statement of work;
and the parties (as
well as the U.S.
Government) agreed
to make licenses
available to
certain IP rights
on a limited basis.
	 	The Company receives
payments based on
completion of the
project.
	 	The Company has
agreed to indemnify
In-Q-Tel for
certain claims
arising under the
agreement.

Standard U.S.
Government rights
and license clauses
are included.
	 
	 	 	 	 	 	 	 	 	 	 
	Development 

Agreement

	 	September 30, 2005
	 	In-Q-Tel and the
Company
	 	The Company
provides defined
services and
deliverables in
accordance with a
statement of work;
and the parties (as
well as the U.S.
Government) agreed
to make licenses
available to
certain IP rights
on a limited basis.
	 	The Company receives
payments based on
completion of the
project.
	 	The Company has
agreed to indemnify
In-Q-Tel for
certain claims
arising under the
agreement.

Standard U.S.
Government rights
and license clauses
are included.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Development 

Agreement

	 	October 1, 2007
	 	In-Q-Tel and the
Company
	 	The Company
provides defined
services and
deliverables in
accordance with a
statement of work;
and the parties (as
well as the U.S.
Government) agreed
to make licenses
available to
certain IP rights
on a limited basis.
	 	The Company receives
payments based on
completion of the
project.
	 	The Company has
agreed to indemnify
In-Q-Tel for
certain claims
arising under the
agreement.

Standard U.S.
Government rights
and license clauses
are included.
	 
	 	 	 	 	 	 	 	 	 	 
	Collaboration 

Agreement

	 	January 24, 2005
	 	CTI Molecular Imaging, Inc. and
the Company
	 	The Company
provides defined
services and
deliverables in the
PET field in
accordance with a
Work Plan under
development, as
well as a
manufacturing
option to CTI under
certain Fluidigm
IP. Also, the
parties
cross-licensed each
other on certain
past and future IP.
	 	The Company received
an upfront payment,
an option payment if
exercised, and
royalties on certain
products.
	 	The Company has
agreed to indemnify
CTI for certain
claims arising from
the Agreement.
	 
	 	 	 	 	 	 	 	 	 	 
	Standard User
Agreement 

Non-Proprietary

	 	 	 	The Regents of the
University of
California for LBNL
and the Company
	 	The Company is
permitted to use
certain LBNL
facilities to
conduct
experiments.
	 	N/A
	 	The Company has
agreed to indemnify
LBNL for certain
claims arising
under the
agreement.
Standard U.S.
Government rights
and license clauses
are included.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Work for Others 

Agreement

Amendment

	 	January 6, 2005

February 4, 2005
	 	The Regents of the
University of
California for LBNL
(“DOE Contractor”) and
the Company
	 	The Company is a Sponsor of federal grants,
under which the Contractor is to perform
certain research in accordance with a
Statement of Work.
	 	N/A
	 	The Company has agreed to indemnify the
DOE Contractor and the U.S. Government
under certain product liability,
intellectual property and general
liability provisions. Standard U.S.
Government rights and license clauses are
included.
	 
	 	 	 	 	 	 	 	 	 	 
	Work for Others 

Agreement

	 	November 15, 2006
	 	 	 	 	 	 	 	The Agreement has been extended to
December 31, 2006, and another similar
Agreement extended into, as noted.
	 
	 	 	 	 	 	 	 	 	 	 
	Industry-University 

Cooperative Research 

Program UC Discovery 

Grant Research Agreement

	 	February 1, 2007
	 	The Regents of the
University of
California (“UC”) and
the Company
	 	UC and the Company are collaborating on
certain research specified in a joint
proposal.
	 	The Company makes bi-monthly
payments and provides in-kind
contributions of Company
products.
	 	The Company has agreed to indemnify UC
under certain circumstances against
liability, loss or expense.
	 
	 	 	 	 	 	 	 	 	 	 
	Evaluation Agreement

	 	November 16, 2004
	 	[***]
Pharmaceuticals,
Inc. and the
Company
	 	[***] to evaluate certain
Company products as specified
in a Work Plan.
	 	[***] to make a
payment for the
evaluation period.
	 	The Company has
agreed to indemnify
[***] for
certain claims
arising under the
agreement.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Material Transfer
and Evaluation
Agreement

	 	September 24, 2004
	 	[***], Inc. and
the Company
	 	Company to receive certain
biological materials from
[***] and use the materials
with Company products in
accordance with a research
plan. The parties agreed on
ownership rights for certain
inventions made when conducting
the research, as well as
associated assignment
requirements.
	 	N/A
	 	The Company has
agreed to indemnify
[***] for certain
claims arising under
this agreement.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	July 18, 2005
	 	Board of Trustees
of the Leland
Stanford Junior
University and the
Company
	 	Company to provide certain
prototype microfluidic chips to
the Quake laboratory at
Stanford University for use in
specified research programs.
The parties agreed on handling
license rights to inventions
generated under the agreement.
	 	The Company receives
payments for chips
provided to the Quake
lab (under separate
invoice).
	 	The agreement expires
August 31, 2005.
	 
	 	 	 	 	 	 	 	 	 	 
	Equipment Loan

	 	January 11, 2006
	 	Board of Trustees
of the Leland
Stanford Junior
University and the
Company
	 	Company loaned certain
equipment to the laboratory of
Dr. Steve Quake.
	 	N/A
	 	The Company shall
have no right to
inventions made with
the loaned equipment.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	March 31, 2006
	 	[***] and the Company
	 	[***] to evaluate assay results
run by Company on certain
prototype-chips.
	 	[***] to pay the Company
for certain work done
under this Agreement.
	 	[***] and the Company
agreed not to file
for patent protection
using the other
party’s confidential
information.

 

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Material Transfer
and Evaluation
Agreement

	 	March 29, 2006
	 	[***] and the
Company
	 	[***] to provide proteins for
crystallization in certain
Company prototype chips. The
parties agreed on handling
invention ownership and license
rights arising under the
Agreement.
	 	N/A
	 	The Company and [***]
have agreed to
cross-indemnify each
other for certain
claims arising under
the Agreement.
	 
	 	 	 	 	 	 	 	 	 	 
	Distribution 

Agreement (and 

Sublicense)

	 	April 1, 2005
	 	Eppendorf
Deutschland and the
Company
	 	Company to distribute
thermalcyclers incorporated in
the BioMark reader.
	 	The Company makes
minimum product
purchases based on
Company estimates.
	 	The Company provides
certain indemnities
(including certain
product liability,
intellectual
property, and general
liability) to
Eppendorf associated
with the distribution
and sublicense.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	March 30, 2006
	 	[***] and the
Company
	 	Company and [***] to
explore contract manufacturing
opportunities.
	 	N/A
	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer
Agreement

Microfluidic’s
Customer Sample 

Agreement

	 	March 10, 2006

November 8, 2006
	 	[***] and
the Company
	 	Company to test certain
material from [***].
	 	N/A
	 	The Company has
agreed to indemnify
specified
universities for
certain claims
arising under this
Agreement. The
Company assigns to
[***] certain
improvement invention
made under this
Material Transfer
Agreement. Under
the Sample Agreement,
the Company and [***] agree to not
file IP concerning
the sample material.

 

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Bioautomation
Development Program
Terms of Business

	 	September 23, 2005

November 10, 2005

January 24, 2006
	 	[***]
and the Company
	 	[***] is developing certain
Company instrumentation
products.
	 	The Company makes
regular payments
based on work at
[***].
	 	The Company provides
certain indemnities
to [***].
	 
	 	 	 	 	 	 	 	 	 	 
	Letter of Intent

Amendment No. 1

	 	May 1, 2006

December 7, 2006
	 	[***] and the
Company
	 	Company to assist [***] in
evaluating certain Company
products for possible
collaboration.
	 	[***] makes regular
payments to the
Company
	 	The Company has
agreed to not enter
certain exclusive
agreements with third
parties during the
amended term of the
LOI.
	 
	 	 	 	 	 	 	 	 	 	 
	Collaboration 

Agreement

	 	June 1, 2006
	 	The Regents of the
University of
California (UCSF)
and the Company
	 	A collaboration regarding
certain Company products.
	 	N/A
	 	The University and
the Company agreed to
certain
cross-indemnification
provisions. Under
the Agreement, the
Company will be
provided an option to
license certain
developed technology.
	 
	 	 	 	 	 	 	 	 	 	 
	Technology
Evaluation and
Services Agreement

	 	August 25, 2006
	 	[***] Inc. and the
Company
	 	[***] is evaluating certain
Company products.
	 	N/A
	 	[***] and the Company
agreed to certain
cross-indemnification
provisions and
division of right to
any new intellectual
property rights
arising under the
Agreement.

 

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Material Transfer 

Agreement

	 	October 5, 2006
	 	MedImmune, Inc.
	 	MedImmune is evaluating certain
Company products.
	 	N/A
	 	Company agreed to
indemnify, MedImmune
for certain
activities associated
with the evaluation
and the Company
agrees to assign
certain developed
technology.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer
Agreement for
Transfers to
Companies

	 	November 16, 2006
	 	University of
Washington and Howard Hughes Medical Institute
and the Company
	 	The University is evaluating
certain Company products.
	 	N/A
	 	Company agreed to
indemnify University
for certain
activities relating
to the Agreement.
	 
	 	 	 	 	 	 	 	 	 	 
	Materials and
Information
Transfer Agreement

	 	November 22, 2006
	 	[***],
Inc. and the
Company
	 	[***] is evaluating certain
Company products.
	 	N/A
	 	Company agreed to
indemnify [***] for
certain activities
relating to the
evaluation and the
parties agreed to
divide rights to any
new intellectual
property arising
under the Agreement
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	December 7, 2006
	 	Fred Hutchinson
Cancer Research
Center and the
Company
	 	FHCRC and the Company are
collaborating to evaluate
certain Company products.
	 	N/A
	 	Company agreed to
indemnify FHCRC for
certain activities
associated with the
Collaboration and
FHCRC agrees to give
Company an option to
certain developed
technology.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	March 15, 2007
	 	[***], Inc.
	 	[***] is evaluating certain
Company products.
	 	N/A
	 	Company agreed to
indemnify, [***]
for certain
activities associated
with the evaluation
and the Company may
assign certain
developed technology.

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Material Transfer 

Agreement

	 	May 9, 2007
	 	Myriad Genetics
	 	Myriad is evaluating certain
Company products.
	 	N/A
	 	Company agreed to
indemnify, Myriad for
certain activities
associated with the
evaluation and the
Company may assign
certain developed
technology.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	May 20, 2007
	 	[***]
	 	[***] is evaluating certain
Company products.
	 	N/A
	 	Company agreed to
indemnify, [***]
for certain
activities associated
with the evaluation
and the Company may
assign certain
developed technology.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	June 6, 2007
	 	[***]
	 	[***] is evaluating certain
Company products.
	 	N/A
	 	Company agreed to
indemnify, [***] for
certain activities
associated with the
evaluation and the
Company may assign
certain developed
technology.
	 
	 	 	 	 	 	 	 	 	 	 
	Material Transfer 

Agreement

	 	September 3, 2007
	 	[***]
	 	[***] is evaluating certain
Company products.
	 	N/A
	 	Company agreed to
indemnify, [***]
for certain
activities associated
with the evaluation
and the Company may
assign certain
developed technology.
	 
	 	 	 	 	 	 	 	 	 	 
	Study Agreement

	 	January 2, 2007
	 	Merck & Co., Inc.
	 	Merck is providing samples to
the Company for testing Company
products.
	 	N/A
	 	Company agrees to
assign certain
inventions to Merck
related to the
samples.
	 
	 	 	 	 	 	 	 	 	 	 
	Evaluation Agreement

	 	March 12, 2007
	 	[***]
	 	[***] to evaluate certain
Company products.
	 	N/A
	 	N/A

 

 

 

SCHEDULE 2.10

FLUIDIGM CORPORATION

AGREEMENTS

October 2007

	 	 	 	 	 	 	 	 	 	 	 
	Agreement Title	 	Date	 	Parties	 	Purpose of Agreement	 	Payments	 	Other Information
	Exclusive 

Distribution 

Agreement

	 	May 31, 2007
	 	Bioke
	 	Exclusive Distribution Agreement
	 	N/A
	 	Each party
indemnifies the other
party with respect to
certain acts.
	 
	 	 	 	 	 	 	 	 	 	 
	Exclusive Sales 

Representative
Agreement

	 	June 1, 2007
	 	Fuentes Bono
Negocios
Tecnologicos S.L.
	 	Exclusive Sales Representative
	 	The Company to pay
[***] commission of the
[***] for
each Fluidigm Product
that is sold and
shipped to a
Designated End-User
during the term of
Agreement.
	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 
	Development 

Agreement

	 	October 1, 2007
	 	In-Q-Tel and the
Company
	 	The Company provides defined
services and deliverables in
accordance with a statement of
work; and the parties (as well
as the U.S. Government) agreed
to make licenses available to
certain IP rights on a limited
basis.
	 	The Company receives
payments based on
completion of the
project.
	 	The Company has
agreed to indemnify
In-Q-Tel for certain
claims arising under
the agreement.

Standard U.S.
Government rights and
license clauses are
included.
	 
	 	 	 	 	 	 	 	 	 	 
	Intellectual 

Property Agreement

	 	May 11, 2007
	 	Helicos
BioSciences, Inc.
and California
Institute of
Technology
	 	The agreement confirms and
clarifies intellectual property
rights licensed to Helicos and
the Company by Caltech.
	 	N/A
	 	See Section 2.10(b)
of Schedule of
Exceptions.

 

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-1-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-2-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-3-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-4-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-5-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-6-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-7-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-8-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-9-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-10-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-11-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-12-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-13-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-14-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-15-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-16-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-17-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-18-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-19-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-20-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-21

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-22-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-23

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-24-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-25-

 

Schedule 2.10 – Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm

	 	[***]
	 	Microfluidic Apparatus Having a Vaporizer and Method of Using Same

	 	EPO
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm

	 	[***]
	 	Microfluidic Apparatus Having a Vaporizer and Method of Using Same

	 	Japan
	 	Nelson, James
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm

	 	[***]
	 	MICROFLUIDIC APPARATUS HAVING A VAPORIZER AND METHOD OF USING SAME

	 	PCT
	 	Nelson, James
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm

	 	[***]
	 	Microfluidic apparatus having a vaporizer and method of using same

	 	US
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm)

	 	[***]
	 	Microfluidic Apparatus and Method
	 	United Kingdom
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Thermal Reaction Device and Method for Using the Same

	 	Singapore
	 	 	 	New
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	[***]
	 	[***]
	 	 	 	[***]
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	DRUG DELIVERY SYSTEM
	 	US
	 	Nat, Avtar
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	DRUG DELIVERY SYSTEM
	 	US
	 	Nat, Avtar
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	A MICROFLUIDIC DESIGN AUTOMATION METHOD AND SYSTEM

	 	PCT
	 	Lee, Michael

Worthington, Gajus
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	A MICROFLUIDIC DESIGN AUTOMATION METHOD AND SYSTEM

	 	US
	 	Lee, Michael

Worthington, Gajus

Harris, Greg

Montgomery, James
	 	Issued

-26-

 

Schedule 2.10 – Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	Fluidigm Corporation

	 	[***]
	 	A MICROFLUIDIC DESIGN AUTOMATION METHOD AND SYSTEM
	 	US
	 	Lee , Michael

Worthington, Gajus

Harris, Greg

Montgomery, James
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	A COMPUTER AIDED DESIGN METHOD AND SYSTEM FOR DEVELOPING A MICROFLUIDIC SYSTEM
	 	US
	 	Lee , Michael

Worthington, Gajus
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	A COMPUTER AIDED DESIGN METHOD AND SYSTEM FOR DEVELOPING A MICROFLUIDIC SYSTEM
	 	US
	 	Lee , Michael

Worthington, Gajus
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	COMPUTER AIDED DESIGN METHOD AND SYSTEM FOR DEVELOPING A MICROFLUIDIC SYSTEM
	 	US
	 	Harris , Greg 

Montgomery, James

Lee, Michael

Worthington, Gajus
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	COMPUTER AIDED DESIGN METHOD AND SYSTEM FOR DEVELOPING A MICROFLUIDIC SYSTEM
	 	US
	 	Harris , Greg 

Montgomery, James

Lee, Michael

Worthington, Gajus
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	BIOLOGICAL DESIGN AUTOMATION SYSTEM
	 	US
	 	Lee , Michael 

Worthington, Gajus
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC-BASED ELECTROSPRAY SOURCE FOR ANALYTICAL DEVICES
	 	PCT
	 	Manger , Ian David 

Hao, Cunsheng (Casey)

Unger, Marc
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC-BASED ELECTROSPRAY SOURCE FOR ANALYTICAL DEVICES
	 	US
	 	Manger , Ian David 

Hao, Cunsheng (Casey)

Unger, Marc
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES FOR INTRODUCING AND DISPENSING FLUIDS FROM MICROFLUIDIC SYSTEMS
	 	EPO
	 	Unger , Marc 

Chou, Hou-Pu

Manger, Ian David

Fernandez, Dave

Yi, Yong
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES FOR INTRODUCING AND DISPENSING FLUIDS FROM MICROFLUIDIC SYSTEMS
	 	PCT
	 	Unger , Marc

Chou, Hou-Pu

Manger, Ian David

Fernandez, Dave
	 	Done

-27-

 

Schedule 2.10 – Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES FOR INTRODUCING AND DISPENSING FLUIDS FROM MICROFLUIDIC SYSTEMS
	 	US
	 	Unger , Marc 

Chou, Hou-Pu

Manger, Ian David

Fernandez, Dave

Yi, Yong
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES FOR INTRODUCING AND DISPENSING FLUIDS FROM MICROFLUIDIC SYSTEMS
	 	US
	 	Unger , Marc 

Chou, Hou-Pu

Manger, Ian David

Fernandez, Dave

Yi, Yong
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES FOR INTRODUCING AND DISPENSING FLUIDS FROM MICROFLUIDIC SYSTEMS
	 	US
	 	Unger , Marc 

Chou, Hou-Pu

Manger, Ian David

Fernandez, Dave
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC CHROMATOGRAPHY
	 	US
	 	Huang , Jiang 

Chou, Hou-Pu

Unger, Marc
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Chromatograhpy
	 	US
	 	Huang , Jiang
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC CHROMATOGRAPHY
	 	US
	 	Huang , Jiang 

Chou, Hou-Pu

Unger, Marc
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	POLYMER SURFACE MODIFICATION
	 	EPO
	 	Huang , Jiang 

Xiao, Shaoujun

Unger, Marc
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	POLYMER SURFACE MODIFICATION
	 	Japan
	 	Huang , Jiang 

Xiao, Shaoujun

Unger, Marc
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	POLYMER SURFACE MODIFICATION
	 	PCT
	 	Huang , Jiang 

Xiao, Shaoujun

Unger, Marc
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	POLYMER SURFACE MODIFICATION
	 	US
	 	Huang , Jiang 

Xiao, Shaoujun

Unger, Marc
	 	Issued

-28-

 

Schedule 2.10 – Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	Fluidigm Corporation

	 	[***]
	 	POLYMER SURFACE MODIFICATION
	 	US
	 	Huang , Jiang

	 	Pending
	 

	 	 	 	 	 	 	 	Xiao, Shaoujun	 	 
	 

	 	 	 	 	 	 	 	Unger, Marc	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	POLYMER SURFACE MODIFICATION
	 	EPO
	 	Huang , Jiang

	 	New
	 

	 	 	 	 	 	 	 	Xiao, Shaoujun	 	 
	 

	 	 	 	 	 	 	 	Unger, Marc	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	POLYMER SURFACE MODIFICATION
	 	US
	 	Huang , Jiang
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Particle — Analysis Systems
	 	Australia
	 	Chou , Hou-Pu

	 	Pending
	 

	 	 	 	 	 	 	 	Daridon, Antoine	 	 
	 

	 	 	 	 	 	 	 	Farrell, Kevin	 	 
	 

	 	 	 	 	 	 	 	Fowler, Brian	 	 
	 

	 	 	 	 	 	 	 	Hao, Cunsheng (Casey)	 	 
	 

	 	 	 	 	 	 	 	Javadi, Shervin	 	 
	 

	 	 	 	 	 	 	 	Liau, Yish-Hann	 	 
	 

	 	 	 	 	 	 	 	Manger, Ian David	 	 
	 

	 	 	 	 	 	 	 	Nassef, Hany Ramez	 	 
	 

	 	 	 	 	 	 	 	Norton, Pierce	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Particle — Analysis Systems
	 	EPO
	 	Chou , Hou-Pu

	 	Pending
	 

	 	 	 	 	 	 	 	Daridon, Antoine	 	 
	 

	 	 	 	 	 	 	 	Farrell, Kevin	 	 
	 

	 	 	 	 	 	 	 	Fowler, Brian	 	 
	 

	 	 	 	 	 	 	 	Hao, Cunsheng (Casey)	 	 
	 

	 	 	 	 	 	 	 	Javadi, Shervin	 	 
	 

	 	 	 	 	 	 	 	Liau, Yish-Hann	 	 
	 

	 	 	 	 	 	 	 	Manger, Ian David	 	 
	 

	 	 	 	 	 	 	 	Nassef, Hany Ramez	 	 
	 

	 	 	 	 	 	 	 	Norton, Pierce	 	 
	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC PARTICLE-BASED SYSTEMS
	 	Japan
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 

-29-

 

Schedule 2.10 – Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC PARTICLE-BASED SYSTEMS
	 	PCT
	 	Chou , Hou-Pu

	 	Done
	 

	 	 	 	 	 	 	 	Daridon, Antoine	 	 
	 

	 	 	 	 	 	 	 	Farrell, Kevin	 	 
	 

	 	 	 	 	 	 	 	Fowler, Brian	 	 
	 

	 	 	 	 	 	 	 	Hao, Cunsheng (Casey)	 	 
	 

	 	 	 	 	 	 	 	Javadi, Shervin	 	 
	 

	 	 	 	 	 	 	 	Liau, Yish-Hann	 	 
	 

	 	 	 	 	 	 	 	Manger, Ian David	 	 
	 

	 	 	 	 	 	 	 	Nassef, Hany Ramez	 	 
	 

	 	 	 	 	 	 	 	Norton, Pierce	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC PARTICLE-ANALYSIS SYSTEMS
	 	US
	 	Chou , Hou-Pu 

	 	Allowed
	 

	 	 	 	 	 	 	 	Daridon, Antoine	 	 
	 

	 	 	 	 	 	 	 	Farrell, Kevin	 	 
	 

	 	 	 	 	 	 	 	Fowler, Brian	 	 
	 

	 	 	 	 	 	 	 	Liau, Yish-Hann	 	 
	 

	 	 	 	 	 	 	 	Manger, Ian David	 	 
	 

	 	 	 	 	 	 	 	Nassef, Hany Ramez	 	 
	 

	 	 	 	 	 	 	 	Throndset, William	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC PARTICLE-ANALYSIS SYSTEMS
	 	US
	 	Chou , Hou-Pu

	 	Pending
	 

	 	 	 	 	 	 	 	Daridon, Antoine	 	 
	 

	 	 	 	 	 	 	 	Farrell, Kevin	 	 
	 

	 	 	 	 	 	 	 	Fowler, Brian	 	 
	 

	 	 	 	 	 	 	 	Liau, Yish-Hann	 	 
	 

	 	 	 	 	 	 	 	Manger, Ian David	 	 
	 

	 	 	 	 	 	 	 	Nassef, Hany Ramez	 	 
	 

	 	 	 	 	 	 	 	Throndset, William	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC PARTICLE-ANALYSIS SYSTEMS
	 	US
	 	Daridon , Antoine
	 	Pending

-30-

 

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC PARTICLE-ANALYSIS SYSTEMS
	 	US
	 	Chou , Hou-Pu
Daridon, Antoine
Farrell, Kevin
Fowler, Brian
Hao, Cunsheng (Casey)
Javadi, Shervin
Liau,
Yish-Hann
Manger, Ian David
Nassef, Hany Ramez
Norton, Pierce
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC PARTICLE-ANALYSIS SYSTEMS
	 	US
	 	Chou , Hou-Pu
Daridon, Antoine
Farrell, Kevin
Fowler, Brian
Hao, Cunsheng (Casey)
Javadi, Shervin
Liau,
Yish-Hann
Manger, Ian David
Nassef, Hany Ramez
Norton, Pierce
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	Switzerland and Liechtens
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	Germany
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	EPO
	 	Fernandez , Dave
Chou, Hou-Pu
Unger, Marc
	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	France
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	United Kingdom
	 	 	 	New
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	Ireland
	 	 	 	Pending

-31-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	PCT
	 	Fernandez , Dave
Chou, Hou-Pu
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	US
	 	Fernandez , Dave
Chou, Hou-Pu
Unger, Marc
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfabricated Fluidic Circuit Elements and Applications
	 	US
	 	Fernandez , Dave
Chou, Hou-Pu
Unger, Marc
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	EPO
	 	Fernandez , Dave
Chou, Hou-Pu
Unger, Marc
	 	New
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfabricated Fluidic Circuit Elements and Applications
	 	US
	 	Fernandez , Dave
Chou, Hou-Pu
Unger, Marc
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFABRICATED FLUIDIC CIRCUIT ELEMENTS AND APPLICATIONS
	 	US
	 	Fernandez , Dave
Chou, Hou-Pu
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	FLUIDIC TAPER ICON FOR A DISPLAY SCREEN
	 	US
	 	Lee , Michael
Yi, Yong
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	FLUIDIC ROTARY MIXER SQUARE ICON FOR A DISPLAY SCREEN
	 	US
	 	LEE , MICHAEL
YI, YONG
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	FLUIDIC BRIDGE ICON FOR A DISPLAY SCREEN
	 	US
	 	Lee , Michael
Yi, Yong
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	ELECTROSTATIC/ELECTROSTRICTIVE ACTUATION OF ELASTOMER STRUCTURES USING COMPLIANT ELECTRODES
	 	US
	 	Unger , Marc
	 	Issued
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	ELECTROSTATIC/ELECTROSTRICTIVE ACTUATION OF ELASTOMER STRUCTURES USING COMPLIANT ELECTRODES
	 	US
	 	Unger , Marc
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	ELECTROSTRICTIVE ACTUATION OF ELASTOMER STRUCTURES USING COMPLIANT ELECTRODES
	 	US
	 	Unger , Marc
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	METHODS AND DEVICES FOR ELECTRONIC AND MAGNETIC SENSING OF THE CONTENTS OF MICROFLUIDIC FLOW CHANNELS
	 	US
	 	Nassef , Hany Ramez
Unger, Marc
Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	METHODS AND DEVICES FOR ELECTRONIC AND MAGNETIC SENSING OF THE CONTENTS OF MICROFLUIDIC FLOW CHANNELS
	 	US
	 	Nassef , Hany Ramez
Unger, Marc
Facer, Geoffrey
	 	Converted

-32-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation

	 	[***]
	 	HIGH THROUGHPUT PCR
	 	US
	 	Unger , Marc

Manger, Ian David

Lucero, Michael
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Device and Methods of Using Same
	 	Australia
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE AND METHODS OF USING SAME
	 	Canada
	 	Unger , Marc

Manger, Ian David

Lucero, Michael

Yi, Yong

Miyashita-Lin, Emily

Weinecke, Anja

Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Device and Methods of Using Same
	 	EPO
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Device and Methods of Using Same
	 	Japan
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE AND METHODS OF USING SAME
	 	PCT
	 	Unger , Marc

Manger, Ian David

Lucero, Michael

Yi, Yong

Miyashita-Lin, Emily

Weinecke, Anja

Facer, Geoffrey
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Device and Methods of Using Same
	 	Singapore
	 	 	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE AND METHODS OF USING SAME
	 	US
	 	Unger , Marc

Manger, Ian David

Lucero, Michael

Yi, Yong

Miyashita-Lin, Emily

Weinecke, Anja

Facer, Geoffrey
	 	Issued

-33-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE AND METHODS OF USING SAME
	 	US
	 	Unger , Marc

Manger, Ian David

Lucero, Michael

Yi, Yong

Miyashita-Lin, Emily

Weinecke, Anja

Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE AND METHODS OF USING SAME
	 	US
	 	Unger , Marc

Manger, Ian David

Lucero, Michael

Yi, Yong

Miyashita-Lin, Emily

Weinecke, Anja

Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE AND METHODS OF USING SAME
	 	US
	 	Unger , Marc

Manger, Ian David

Lucero, Michael

Yi, Yong

Miyashita-Lin, Emily

Weinecke, Anja

Facer, Geoffrey
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	RECIRCULATING FLUIDIC NETWORK AND METHODS FOR USING THE SAME
	 	US
	 	Manger , Ian David

Barco, Joseph W.

Nassef, Hany Ramez
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Recirculating Fluidic Network and Methods for Using the Same
	 	US
	 	Manger , Ian David

Barco, Joseph W.

Nassef, Hany Ramez
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Recirculating Fluidic Network and Methods for Using the Same
	 	Japan
	 	Manger , Ian David

Barco, Joseph W.

Nassef, Hany Ramez
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	RECIRCULATING FLUIDIC NETWORK AND METHODS FOR USING THE SAME
	 	PCT
	 	Manger , Ian David

Barco, Joseph W.

Nassef, Hany Ramez
	 	Done

-34-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation

	 	[***]
	 	RECIRCULATING FLUIDIC NETWORK AND
METHODS FOR USING THE SAME
	 	US
	 	Manger , Ian David
Barco, Joseph W.
Nassef, Hany Ramez
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND METHODS OF USING SAME
	 	Australia
	 	 	 	New
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND METHODS OF USING SAME
	 	Canada
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND METHODS OF USING SAME
	 	EPO
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND METHODS OF USING SAME
	 	Japan
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND METHODS OF USING SAME
	 	Singapore
	 	 	 	New
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND METHODS OF USING SAME
	 	US
	 	McBride , Lincoln

Unger, Marc

Lucero, Michael

Nassef, Hany Ramez

Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND METHODS OF USING SAME
	 	US
	 	Unger , Marc

Huang, Jiang

Quan, Emerson
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Thermal Reaction Device and Method for Using The Same
	 	US
	 	Goodsaid , Federico
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Thermal Reaction Device and Method for Using the Same
	 	PCT
	 	Unger , Marc

McBride, Lincoln

Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Thermal Reaction Device and Method for Using the Same
	 	US
	 	Unger , Marc

McBride, Lincoln

Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE AND METHODS OF USING SAME
	 	PCT
	 	 	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Microfluidic Device and Methods of Using Same
	 	US
	 	 	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Growth Devices and Systems, and Methods for
Using Same
	 	EPO
	 	Nassef , Hany Ramez
Barco, Joseph W.
Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	CRYSTAL GROWTH DEVICES AND SYSTEMS,
AND METHODS FOR USING SAME
	 	PCT
	 	Nassef , Hany Ramez
Barco, Joseph W.
Facer, Geoffrey
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	CRYSTAL GROWTH DEVICES AND SYSTEMS,
AND METHODS FOR USING SAME
	 	US
	 	Nassef , Hany Ramez
Barco, Joseph W.
Facer, Geoffrey
	 	Pending

-35-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation

	 	[***]
	 	CRYSTAL GROWING DEVICES AND METHODS
FOR USING THE
SAME
	 	US
	 	Nassef , Hany Ramez
Barco, Joseph W.
Facer, Geoffrey
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	CRYSTAL GROWTH DEVICES AND METHODS FOR USING THE SAME
	 	US
	 	Nassef , Hany Ramez
Barco, Joseph W.
Facer, Geoffrey
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	CRYSTAL GROWTH DEVICES AND METHODS FOR USING THE SAME
	 	US
	 	Nassef , Hany Ramez
Barco, Joseph W.
Facer, Geoffrey
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	METHOD AND SYSTEM FOR MICROFLUIDIC
DEVICE AND IMAGING THEREOF
	 	Australia
	 	Quan , Emerson
Taylor, Colin J.
Lee, Michael
Ceasar, Christopher
Harris, Greg
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	METHOD AND SYSTEM FOR MICROFLUIDIC
DEVICE AND IMAGING THEREOF
	 	Canada
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	METHOD AND SYSTEM FOR MICROFLUIDIC
DEVICE AND IMAGING THEREOF
	 	EPO
	 	Quan , Emerson
Taylor, Colin J.
Lee, Michael
Ceasar, Christopher
Harris, Greg
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	METHOD AND SYSTEM FOR MICROFLUIDIC
DEVICE AND IMAGING THEREOF
	 	Japan
	 	Quan , Emerson
Taylor, Colin J.
Lee, Michael
Ceasar, Christopher
Harris, Greg
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	METHOD AND SYSTEM FOR MICROFLUIDIC
DEVICE AND IMAGING THEREOF
	 	PCT
	 	Quan , Emerson
Taylor, Colin J.
Lee, Michael
Ceasar, Christopher
Harris, Greg
	 	Done

-36-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation

	 	[***]
	 	METHOD AND SYSTEM FOR MICROFLUIDIC DEVICE AND IMAGING THEREOF
	 	US
	 	Quan , Emerson

Taylor, Colin J.

Lee, Michael

Ceasar, Christopher

Harris, Greg
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	CRYSTAL GROWTH IMAGING SYSTEM AND METHODS FOR USING THE SAME
	 	US
	 	Lee , Michael

Taylor, Colin J.

Ceasar, Christopher

Harris, Greg
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Image Processing Method and System for Microfluidic Devices
	 	Australia
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Image Processing Method and System for Microfluidic Devices
	 	Europe
	 	Taylor , Colin J.

Sun, Gang

Dube, Simant
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Image Processing Method and System for Microfluidic Devices
	 	Japan
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Image Processing Method and System for Microfluidic Devices
	 	PCT
	 	 	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Image Processing Method and System for Microfluidic Devices
	 	Singapore
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Image Processing Method and System for Microfluidic Devices
	 	US
	 	Taylor , Colin J.

Sun, Gang

Dube, Simant
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	IMAGE PROCESSING METHOD AND SYSTEM FOR MICROFLUIDIC DEVICES
	 	US
	 	Taylor , Colin J.
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICE INCLUDING FIDUCIAL MARKINGS METHOD AND SUBSTRATE
	 	US
	 	Quan , Emerson
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	IMAGE CAPTURING METHOD AND SYSTEM FOR MICROFLUIDIC DEVICES
	 	US
	 	Taylor , Colin J.
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	DEVICES AND METHODS FOR HOLDING MICROFLUIDIC DEVICES
	 	US
	 	Nassef , Hany Ramez

Facer, Geoffrey
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	DEVICES AND METHODS FOR HOLDING MICROFLUIDIC DEVICES
	 	US
	 	Nassef , Hany Ramez

Facer, Geoffrey
	 	Converted
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Forming Devices and Systems and Methods for Using the Same
	 	Australia
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Forming Devices and Systems and Methods for Using the Same
	 	China
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Forming Devices and Systems and Methods for Using the Same
	 	EPO
	 	Unger , Marc

Grossman, Robert
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Forming Devices and Systems and Methods for Using the Same
	 	Japan
	 	 	 	Pending

-37-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Forming Devices and Systems and Methods for Using the Same
	 	Mexico
	 	 	 	New
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Forming Devices and Systems and Methods for Using the Same
	 	PCT
	 	Unger , Marc

Grossman, Robert
	 	Done
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Crystal Forming Devices and Systems and Methods for Using the Same
	 	Singapore
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	MICROFLUIDIC DEVICES AND SYSTEMS AND METHODS FOR USING THE SAME
	 	US
	 	Unger , Marc

Grossman, Robert

Lam, Phillip

Chou, Hou-Pu

Kimball, Jake

Pieprzyk, Martin
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	INTEGRATED CHIP CARRIERS WITH
THERMOCYCLER INTERFACES AND METHODS OF USING THE SAME
	 	US
	 	Facer , Geoffrey

Grossman, Robert

Unger, Marc

Lam, Phillip

Chou, Hou-Pu

Kimball, Jake

Pieprzyk, Martin

Daridon, Antoine
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	INTEGRATED CHIP CARRIERS WITH
THERMOCYCLER INTERFACES AND METHODS OF USING THE SAME
	 	US
	 	Facer , Geoffrey

Grossman, Robert

Unger, Marc

Lam, Phillip

Chou, Hou-Pu

Kimball, Jake

Pieprzyk, Martin

Daridon, Antoine
	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Thermal Reaction Device and Method for Using the Same
	 	China
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Thermal Reaction Device and Method for Using the Same
	 	EPO
	 	 	 	Pending
	 
	 	 	 	 	 	 	 	 	 	 
	Fluidigm Corporation

	 	[***]
	 	Thermal Reaction Device and Method for Using the Same
	 	Japan
	 	 	 	Pending

-38-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation
	 	[***]
	 	Thermal Reaction Device and Method for Using the Same

	 	PCT
	 	Unger , Marc

Grossman, Robert

Lam, Phillip

Chou, Hou-Pu

Kimball, Jake

Pieprzyk, Martin

Daridon, Antoine
	 	Done
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC DEVICES AND SYSTEMS AND METHODS FOR USING THE SAME

	 	US
	 	Unger , Marc

Grossman, Robert
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC DEVICES AND SYSTEMS AND METHODS FOR USING THE SAME

	 	US
	 	Unger , Marc
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC DEVICES AND SYSTEMS AND METHODS FOR USING THE SAME

	 	US
	 	Unger , Marc
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	METHOD AND SYSTEM FOR FABRICATING VIA STRUCTURES FOR FLUIDIC MICROCHIPS

	 	US
	 	Unger , Marc

Chou, Hou-Pu

Clerkson, Barry

Halderman, Jonathan
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	METHOD AND SYSTEM FOR FABRICATING VIA STRUCTURES FOR 

FLUIDIC MICROCHIPS

	 	US
	 	Unger , Marc
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	CRYSTALLIZATION SCALE-UP METHODS AND SYSTEMS FOR 

PERFORMING THE SAME

	 	US
	 	May  , Andrew
Nassef, Hany Ramez
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	CRYSTALLIZATION SCALE-UP METHODS AND SYSTEMS FOR 

PERFORMING THE SAME

	 	US
	 	Nassef , Hany Ramez
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Optical Lens System and Method for Microfluidic Devices

	 	China
	 	 	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Optical Lens System and Method for Microfluidic Devices

	 	EPO
	 	 	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Optical Lens System and Method for Microfluidic Devices

	 	Japan
	 	 	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Optical Lens System and Method for Microfluidic Devices

	 	PCT
	 	 	 	Done
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Optical Lens System and Method for Microfluidic Devices

	 	Singapore
	 	 	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Optical Lens System and Method for Microfluidic Devices

	 	US
	 	Unger , Marc

Facer, Geoffrey

Clerkson, Barry

Ceasar, Christopher

Switz, Neil
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Optical Lens System and Method for Microfluidic Devices

	 	US
	 	Unger , Marc
	 	Converted

-39-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation
	 	[***]
	 	Via Valve for Creation of 3-D Control Lines

	 	US
	 	 	 	New
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Devices, Compositions, and Methods Used for
Manufacturing Microfluidic Devices

	 	US
	 	Fowler , Brian
	 	New
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Analysis Using Microfluidic Partitioning Devices

	 	PCT
	 	Heid , Christian A.
Daridon, Antoine
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Analysis Using Microfluidic Partitioning Devices

	 	US
	 	Heid , Christian A.
Daridon, Antoine
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Systems for Crystallizing Molecules

	 	US
	 	Sun , Gang
	 	New
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	ANALYSIS ENGINE AND DATABASE FOR MANIPULATING 

PARAMETERS FOR FLUIDIC SYSTEMS ON A CHIP

	 	PCT
	 	 	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	ANALYSIS ENGINE AND DATABASE FOR MANIPULATING 

PARAMETERS FOR FLUIDIC SYSTEMS ON A CHIP

	 	US
	 	Sun , Gang

Harris, Greg

May, Andrew

Self, Kyle

Farrell, Kevin

Wyatt, Paul
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	ANALYSIS ENGINE AND DATABASE FOR MANIPULATING 

PARAMETERS FOR FLUIDIC SYSTEMS ON A CHIP

	 	US
	 	Sun , Gang

Harris, Greg

May, Andrew

Self, Kyle

Farrell, Kevin

Wyatt, Paul
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC ASSAY DEVICES AND METHODS

	 	PCT
	 	Nassef , Hany Ramez

Chou, Hou-Pu

Lucero, Michael

May, Andrew

Yokobata, Kathy
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC ASSAY DEVICES AND METHODS

	 	US
	 	Nassef , Hany Ramez

Chou, Hou-Pu

Lucero, Michael

May, Andrew

Yokobata, Kathy
	 	Pending

-40-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC DEVICES FOR PERFORMING IMMUNOLOGICAL ASSAYS

	 	US
	 	Nassef , Hany Ramez

Lucero, Michael

Manger, Ian David
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	DEVICES AND METHODS FOR MICROFLUIDIC CHROMATOGRAPHY

	 	US
	 	Daridon , Antoine

Huang, Jiang

Phi, Oai

May, Andrew
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	FLUIDIC DEVICES HAVING ELASTOMERIC VALVES AND METHODS FOR MANUFACTURING SUCH DEVICES

	 	US
	 	Cohen , David

May, Andrew

Fowler, Brian
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	FLUIDIC DEVICES HAVING ELASTOMERIC VALVES AND METHODS FOR MANUFACTURING SUCH DEVICES

	 	US
	 	Cohen , David

May, Andrew

Fowler, Brian
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC REACTION APPARATUS FOR HIGH THROUGHPUT SCREENING

	 	US
	 	Jones , Robert

Wyatt, Paul

Daridon, Antoine

Wang, Jing

May, Andrew

Cohen, David
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	MICROFLUIDIC REACTION APPARATUS FOR HIGH THROUGHPUT SCREENING

	 	US
	 	Jones , Robert

Wyatt, Paul

Daridon, Antoine
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Assay Methods

	 	US
	 	Lucero , Michael

Unger, Marc
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Assay Methods

	 	US
	 	Lucero , Michael

Unger, Marc
	 	Converted
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Image Analysis System for Microfluidic Devices

	 	US
	 	Dube , Simant

Sun, Gang

Zhao, Lian-She
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Microfluidic Check Valves

	 	US
	 	Wang , Jing

Nassef, Hany Ramez
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	Method and Apparatus for Biological Sample Analysis

	 	US
	 	Sun , Gang

Jones, Robert

Ramakrishnan, Ramesh
	 	Pending

-41-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	Fluidigm Corporation
	 	[***]
	 	High Efficiency and high Precision Microfluidic Devices and Methods

	 	US
	 	Cohen , David

Wang, Jing
	 	Pending
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	[***]

	 	[***]
	 	[***]
	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	[***]

	 	[***]
	 	[***]	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	Fluidigm Corporation
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	[***]
	 	[***]
	 	[***]

	 	[***]
	 	[***]
	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	[***]
	 	[***]
	 	[***]

	 	[***]
	 	[***]
	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	[***]
	 	[***]
	 	[***]

	 	[***]
	 	[***]
	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	[***]
	 	[***]
	 	[***]

	 	[***]
	 	[***]
	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	[***]
	 	[***]
	 	[***]

	 	[***]
	 	[***]
	 	[***]
	 	 	 	 	 
	 	 	 	 	 	 
	[***]
	 	[***]
	 	[***]

	 	[***]
	 	[***]
	 	[***]

-42-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-43-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-44-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-45

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-46-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-47-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-48-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-49-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-50-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-51-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-52-

 

Schedule 2.10 — Patents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case No.	 	 	 	 	 	 	 	 
	Assignee/Licensor	 	Client Case #	 	Title	 	Country	 	Inventor Names	 	Status
	 
	 	 
	 	 	 	 	 	 	 	 

[***]

-53-

 

EXHIBIT D

FORM OF EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

FLUIDIGM CORPORATION

FORM
OF

EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

June 13, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	SECTION 1 Restrictions on Transferability; Registration Rights	 	 	1	 
	 
	 	1.1	 	Certain Definitions	 	 	1	 
	 
	 	1.2	 	Restrictions	 	 	4	 
	 
	 	1.3	 	Restrictive Legend	 	 	5	 
	 
	 	1.4	 	Notice of Proposed Transfers	 	 	5	 
	 
	 	1.5	 	Requested Registration	 	 	6	 
	 
	 	1.6	 	Company Registration	 	 	8	 
	 
	 	1.7	 	Registration on Form S-3	 	 	9	 
	 
	 	1.8	 	Expenses of Registration	 	 	10	 
	 
	 	1.9	 	Registration Procedures	 	 	10	 
	 
	 	1.10	 	Indemnification	 	 	12	 
	 
	 	1.11	 	Information by Holder	 	 	14	 
	 
	 	1.12	 	Reports Under Securities Exchange Act of 1934	 	 	14	 
	 
	 	1.13	 	Transfer of Registration Rights	 	 	15	 
	 
	 	1.14	 	Standoff Agreement	 	 	15	 
	 
	 	1.15	 	No Right to Delay Registration	 	 	16	 
	 
	 	1.16	 	Termination of Rights	 	 	16	 
	 
	 	1.17	 	Limitations on Subsequent Registration Rights	 	 	16	 
	SECTION 2 Affirmative Covenants of the Company	 	 	16	 
	 
	 	2.1	 	Delivery of Financial Statements	 	 	17	 
	 
	 	2.2	 	Additional Information Rights	 	 	17	 
	 
	 	2.3	 	Confidentiality	 	 	18	 
	 
	 	2.4	 	Visitation Rights	 	 	18	 
	 
	 	2.5	 	Stock Option Vesting	 	 	18	 
	 
	 	2.6	 	Insurance	 	 	18	 
	 
	 	2.7	 	Proprietary Information Agreements	 	 	19	 
	 
	 	2.8	 	Invention Assignments	 	 	19	 
	 
	 	2.9	 	Key-Man Life Insurance	 	 	19	 
	 
	 	2.10	 	Compliance with Laws	 	 	19	 
	 
	 	2.11	 	Termination of Covenants	 	 	19	 
	SECTION 3 Right of First Offer For Company Securities	 	 	19	 
	 
	 	3.1	 	Right of First Offer	 	 	19	 
	 
	 	3.2	 	Sale of Securities by Company	 	 	20	 
	 
	 	3.3	 	Offer Amount	 	 	20	 
	 
	 	3.4	 	Financing	 	 	20	 
	 
	 	3.5	 	Termination of Right of First Offer	 	 	21	 
	SECTION 4 Right of First Offer with Respect to Founder Shares	 	 	22	 
	 
	 	4.1	 	Notice of Sales	 	 	22	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 	4.2	 	Purchase Right	 	 	22	 
	 
	 	4.3	 	Sale of Securities by Founder	 	 	23	 
	 
	 	4.4	 	Termination and Transfer	 	 	23	 
	 
	 	4.5	 	Prohibited Transfer	 	 	23	 
	SECTION 5 Right of Co-Sale	 	 	23	 
	 
	 	5.1	 	Notice of Sales	 	 	23	 
	 
	 	5.2	 	Participation Right	 	 	24	 
	 
	 	5.3	 	Sale of Securities by Founder	 	 	25	 
	 
	 	5.4	 	Termination and Transfer	 	 	25	 
	 
	 	5.5	 	Prohibited Transfers	 	 	25	 
	SECTION 6 Miscellaneous	 	 	26	 
	 
	 	6.1	 	Governing Law; Jurisdiction	 	 	26	 
	 
	 	6.2	 	Successors and Assigns	 	 	26	 
	 
	 	6.3	 	Notices, Etc	 	 	26	 
	 
	 	6.4	 	Delays or Omissions	 	 	27	 
	 
	 	6.5	 	Third Parties	 	 	27	 
	 
	 	6.6	 	Severability	 	 	27	 
	 
	 	6.7	 	Amendment and Waiver	 	 	27	 
	 
	 	6.8	 	Rights of Holders	 	 	28	 
	 
	 	6.9	 	Counterparts	 	 	28	 
	 
	 	6.10	 	Titles and Subtitles	 	 	28	 
	 
	 	6.11	 	Amendment and Restatement of Prior Agreement	 	 	28	 
	 
	 	6.12	 	Waiver of Right of First Offer	 	 	28	 
	 
	 	6.13	 	Aggregation of Stock	 	 	28	 
	 
	 	6.14	 	Jury Trial	 	 	29	 

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EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     THIS EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (the “Agreement”) is entered into
as of June   , 2006 by and among Fluidigm Corporation, a California corporation (the “Company”),
the persons set forth on EXHIBIT A hereto (the “New Investors”), the persons set forth on
the Schedule of Founders attached hereto as EXHIBIT B (the “Founders”), and the persons set
forth on EXHIBIT C hereto (the “Prior Investors”). The Prior Investors and the New
Investors are referred to herein collectively as the “Investors.”

RECITALS

     WHEREAS, the Company and the New Investors have entered into a Series E Preferred Stock
Purchase Agreement of even date herewith (the “Purchase Agreement”) pursuant to which the Company
shall sell, and the New Investors shall acquire, shares of the Company’s Series E Preferred Stock;

     WHEREAS, the Company has granted certain registration rights and other rights to the Founders
and the Prior Investors pursuant to that certain Seventh Amended and Restated Investor Rights
Agreement dated August 16, 2005 (the “Prior Agreement”); and

     WHEREAS, as an inducement to the New Investors to purchase shares of the Company’s Series E
Preferred Stock pursuant to the Purchase Agreement, the Company, the Prior Investors and the
Founders desire to amend and restate the Prior Agreement to allow the New Investors to become a
party to this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth,
the parties agree as follows:

SECTION 1

Restrictions on Transferability; Registration Rights

          1.1 Certain Definitions. As used in this Agreement, the following terms shall have
the following meanings:

          “Affiliate” shall have the meaning set forth in Rule 405 of the Securities Act;
provided that for AllianceBernstein L.P. and its permitted transferees, the
definition of “Affiliate” shall also include (i) any general partner, officer or director of such
person, (ii) any private equity or venture capital fund now or hereafter existing (a “Fund”) for
which such person or an Affiliate of such person is a general partner or management company, and
(iii) if such person is a Fund, any other Fund that is directly or indirectly controlled by or
under common control with one or more general partners of such person, or that shares the same
management company with such person or an Affiliated management company.

 

 

          “Commission” shall mean the Securities and Exchange Commission or any other federal agency at
the time administering the Securities Act.

          “Eligible Securities” shall mean (i) the Series A Preferred Stock issued pursuant to the
Series A Preferred Stock Purchase Agreement dated December 1, 1999; (ii) the Series B Preferred
Stock issued pursuant to the Series B Preferred Stock Purchase Agreement dated July 5, 2000; (iii)
the Series C Preferred Stock issued pursuant to the Series C Preferred Stock Purchase Agreement
dated October 23, 2001; (iv) the Series C Preferred Stock issued pursuant to the Series C Preferred
Stock Purchase Agreement dated November 1, 2002; (v) the Series C Preferred Stock issued pursuant
to the Series C Preferred Stock and Warrant Purchase Agreement dated September 22, 2003; (vi) the
Series D Preferred Stock issued pursuant to the Series D Preferred Stock Purchase Agreement dated
December 18, 2003; (vii) the Series D Preferred Stock issued pursuant to the Series D Preferred
Stock Purchase Agreement dated August 16, 2005; (viii) the Series D Preferred Stock issued upon
conversion of convertible promissory note(s) issued pursuant to the Convertible Promissory Note
Purchase Agreement (the “CNPA”) dated December 18, 2003, as amended by Amendment No. 1 to
Convertible Note Purchase Agreement dated December 17, 2004, between the Company and Biomedical
Sciences Investment Fund Pte Ltd (the “BMSIF”); (ix) the Series D Preferred Stock issued upon
conversion of convertible promissory note(s) issued in connection with the Convertible Note
Agreement (the “CNA”) dated December 18, 2003, between the Company and Invus, L.P. (the “Invus”);
(x) the Series E Preferred Stock issued pursuant to the Purchase Agreement; (xi) all Securities
acquired by any Investor pursuant to the rights of first offer described in Sections 3 or 4 of this
Agreement; and (xii) any Securities issued with respect to the foregoing upon any stock split,
stock dividend, recapitalization, or similar event or upon any exercise or conversion, as
applicable.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all as the same shall
be in effect at the time.

          “Founders Shares” shall mean the shares of Common Stock of the Company issued to the Founders
as of the date of this Agreement or at any time in the future.

          “Holder” shall mean (i) any Investor and any person to whom registration rights under this
Agreement have been transferred in accordance with Section 1.13 hereof, (ii) for the purposes of
Section 1.6 (and other portions of this Section 1, to the extent they relate to rights of
registration under Section 1.6), any Founder or holder of Other Shares and (iii) for the purposes
of Sections 1.5, 1.6 and 1.7 (and other portions of this Section 1, to the extent they relate to
rights of registration under Sections 1.5, 1.6 and 1.7), Warrantholders.

          “Initial Public Offering” shall mean the first sale of Securities of the Company pursuant to
an effective registration statement under the Securities Act.

          “Initiating Holders” shall mean Holders who in the aggregate hold a majority of the
Registrable Securities then held by Holders assuming conversion or exercise, as applicable, of all
Eligible Securities.

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          “Lighthouse Preferred Warrant” shall mean the Preferred Stock Purchase Warrant dated March 29,
2005, pursuant to which Lighthouse Capital Partners V, L.P. (“Lighthouse”) may purchase shares of
the Company’s authorized Series D Preferred Stock.

          “Other Shares” shall mean the shares of Common Stock of the Company issued pursuant to the
Common Stock Purchase Agreements dated July 17, 2001 and February 2005 by and between the Company
and President and Fellows of Harvard College.

          “Permitted Transferee” shall mean (i) any general partner or retired general partner of any
Holder which is a partnership; (ii) any family member of a Holder or trust for the benefit of any
individual Holder; (iii) any Investor; (iv) an Affiliate of an Investor; or (v) any transferee who
acquires at least 40,000 shares of Eligible Securities.

          The terms “register,” “registered” and “registration” refer to a registration effected by
preparing and filing a registration statement in compliance with the Securities Act, and the
declaration or ordering of the effectiveness of such registration statement.

          “Registration Expenses” shall mean all expenses incurred by the Company in complying with
Sections 1.5, 1.6 and 1.7 hereof, including, without limitation, all registration, qualification,
stock exchange and filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company and accountants and other persons retained by or for the Company (including the
fees of one counsel for the Holders, not to exceed $25,000), blue sky fees and expenses, accounting
fees and the expense of any special audits incident to or required by any such registration (but
excluding the compensation of regular employees of the Company which shall be paid in any event by
the Company).

          “Registrable Securities” means (i) any shares of Common Stock which are Eligible Securities,
(ii) any shares of Common Stock issuable upon the exercise or conversion, as applicable, of
Eligible Securities, (iii) for the purposes of Section 1.6 (and other portions of this Section 1,
to the extent they relate to rights of registration under Section 1.6) any shares of Common Stock
which are Founder Shares or Other Shares, and (iv) for the purposes of Sections 1.5, 1.6 and 1.7
(and other portions of this Section 1, to the extent they relate to rights of registration under
Sections 1.5, 1.6 and 1.7) any shares of Common Stock which are Warrant Shares; provided,
however, that shares of Common Stock shall be treated as Registrable Securities only if and
so long as they have not been (A) sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction, (B) sold in a transaction exempt from the
registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof
so that all transfer restrictions and restrictive legends with respect thereto are removed upon the
consummation of such sale or (C) sold in a transaction in which the rights granted under this
Section 1 are not assigned in accordance with this Agreement.

          “Restricted Securities” shall mean the securities of the Company required to bear the legends
set forth in Section 1.3 hereof.

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          “Securities” shall mean shares of, or securities convertible into or exercisable for any
shares of, any class of capital stock of the Company.

          “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal
statute and the rules and regulations of the Commission thereunder, all as the same shall be in
effect at the time.

          “Selling Expenses” shall mean all underwriting discounts and selling commissions and
applicable to the securities registered by the Holders and any fees and disbursements of counsel
for the Holders not included in the definition of Registration Expenses.

          “Voting Agreement” shall mean the Second Amended and Restated Voting Agreement dated August
16, 2005 among the Company and certain stockholders of the Company.

          “Warrant Shares” shall mean the shares of Common Stock of the Company issued or issuable upon
conversion of the (i) Series C Preferred Stock issued or issuable upon exercise or conversion of
(A) the warrant to purchase up to 17,500 shares of Series C Preferred Stock issued to TBCC Funding
Trust II (“TBCC”) pursuant to the Master Loan and Security Agreement dated March 27, 2002 by and
between the Company and Transamerica Technology Finance Corporation; (B) the warrant to purchase
up to 31,008 shares of Series C Preferred Stock issued to General Electric Capital Corporation (“GE
Capital”) in connection with the Master Security Agreement dated as of November 8, 2002, as amended
(the “Master Security Agreement”) by and between the Company and GE Capital; (C) the warrants to
purchase an aggregate of up to 90,000 shares of Series C Preferred Stock issued to Glaxo Group
Limited (“GGL”) in connection with the Development Collaboration and License Agreement dated
September 22, 2003 (the “License Agreement”); and (D) the warrants to purchase an aggregate of up
to 110,000 shares of Series C Preferred Stock issued to SmithKline Beecham Corporation (“SBC”) in
connection with the License Agreement; and (ii) the Series D Preferred Stock issued or issuable
upon exercise or conversion of (A) the warrant to purchase up to 37,500 shares of Series D
Preferred Stock dated March 18, 2004 and issued to GE Capital in connection with extensions of
credit to the Company; (B) the warrant to purchase up to 380,556 shares of Series D Preferred Stock
dated June 30, 2004 and issued to In-Q-Tel, Inc. (“In-Q-Tel”); (C) the Lighthouse Preferred
Warrant; and (D) the warrant to purchase up to 126,851 shares of Series D Preferred Stock dated
June 30, 2004 and issued to In-Q-Tel Employee Fund, LLC (“Employee Fund”) . GGL, SBC, TBCC, GE
Capital, In-Q-Tel, Employee Fund, and Lighthouse are collectively referred to herein as
“Warrantholders.”

          “Worthington Shares” shall mean the Founder Shares issued to Gajus Worthington.

          1.2 Restrictions. No Restricted Securities shall be sold, assigned, transferred or
pledged except upon the conditions specified in this Agreement. Each Holder will cause any
proposed purchaser, assignee, transferee or pledgee of its Restricted Securities to agree in
writing to
take and hold such securities subject to the provisions and upon the conditions specified in
this Agreement, including, without limitation, Section 1.14, except where such Restricted
Securities would cease to be Restricted Securities in connection with such proposed purchase,
assignment, transfer or pledge.

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          1.3 Restrictive Legend. Each certificate representing Registrable Securities shall
(unless otherwise permitted by the provisions of Section 1.4 below) be stamped or otherwise
imprinted with a legend in the following form (in addition to any legend required under applicable
state securities laws):

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”). SUCH SHARES MAY NOT BE SOLD, TRANSFERRED OR PLEDGED IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL
(WHICH MAY BE COUNSEL FOR THE COMPANY), OR OTHER EVIDENCE, REASONABLY ACCEPTABLE TO
IT STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF THE SECURITIES ACT.”

“THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE
WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY OF
WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.”

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A MARKET STAND-OFF
AGREEMENT IN THE EVENT OF A PUBLIC OFFERING, A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF THE COMPANY.”

          Each Holder consents to the Company making a notation on its records and giving instructions
to any transfer agent of the Restricted Securities in order to implement the restrictions on
transfer established in this Section 1.

          1.4 Notice of Proposed Transfers. Each Holder of each certificate representing
Restricted Securities, by acceptance thereof, agrees to comply in all respects with the
restrictions on transfer contained in Sections 1.2, 1.3, 1.4 and 1.14 of this Agreement. Solely
for purposes of the foregoing sentence and for the sake of clarification, the term “Holder” shall
also include and the term “Restricted Securities” shall also apply to any Founder, holder of Other
Shares or Warrantholders. Prior to any proposed sale, assignment, transfer or pledge of any
Restricted Securities (other than any transfer not involving a change in beneficial ownership),
unless there is in effect a registration statement under the Securities Act covering the proposed
transfer, the Holder thereof shall give written notice to the Company of such Holder’s intention to
effect such transfer, sale, assignment or
pledge. Each such notice shall describe the manner and circumstances of the proposed
transfer, sale, assignment or pledge in sufficient detail, and shall be accompanied at such
Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal
opinion shall be, reasonably satisfactory to the Company, addressed to the Company, to the effect
that the proposed transfer of the Restricted Securities may be effected without registration under
the Securities Act and applicable state securities laws, or (ii) a “no action” letter from the
Commission

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to the effect that the transfer of such securities without registration will not result
in a recommendation by the staff of the Commission that action be taken with respect thereto, or
(iii) any other evidence reasonably satisfactory to counsel to the Company, whereupon the Holder of
such Restricted Securities shall be entitled to transfer such Restricted Securities in accordance
with the terms of the notice delivered by the Holder to the Company; provided,
however, that no such legal opinion, “no action” letter or other evidence shall be required
with respect to a transfer to an Affiliate. Each certificate evidencing the Restricted Securities
transferred as above provided shall bear, except if such transfer is made pursuant to Rule 144, the
appropriate restrictive legend set forth in Section 1.3 above, except that such certificate shall
not bear such restrictive legend if, in the opinion of counsel for such Holder and reasonably
acceptable to the Company, such legend is not required in order to establish compliance with any
provisions of the Securities Act or this Agreement.

          1.5 Requested Registration.

               (a) Request for Registration. In case the Company shall receive from Initiating
Holders a written request that the Company effect any registration with respect to a public
offering of at least 50% of the Registrable Securities, the reasonably anticipated aggregate price
to the public of which, net of underwriting discounts and commissions, would exceed $20,000,000,
the Company will:

                    (i) promptly give written notice of the proposed registration to all other Holders; and

                    (ii) use its best efforts to effect as soon as practicable such registration (including,
without limitation, the execution of an undertaking to file post-effective amendments, appropriate
qualification under applicable blue sky or other state securities laws and appropriate compliance
with applicable regulations issued under the Securities Act and any other governmental requirements
or regulations) as may be so requested and as would permit or facilitate the sale and distribution
of all or such portion of such Registrable Securities as are specified in such request, together
with all or such portion of the Registrable Securities of any Holder or Holders joining in such
request as are specified in a written request received by the Company within 15 days after receipt
of the written notice from the Company; provided, however, that the Company shall
not be obligated to take any action to effect any such registration pursuant to this Section 1.5:

                         (1) Prior to six months following the closing of the Company’s Initial Public Offering;

                         (2) During the period starting with the date 60 days prior to the Company’s estimated date of
filing of, and ending on the date three months immediately following the effective date of, any
registration statement (other than a registration of Securities in a Rule 145 transaction or with
respect to an employee benefit plan) pertaining to Securities of the Company (subject to Section
1.6(a) hereof), provided that the Company is actively employing in good faith all reasonable
efforts to cause such registration statement to be filed and become effective and that the Company
provides the Initiating Holders written notice of its intent to file such

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registration statement
within 30 days of receiving the request for registration from the Initiating Holders and provided
further, however, that the Company may not utilize this right more than once in any 12-month
period.

                         (3) After the Company has effected two registrations pursuant to this Section 1.5; or

                         (4) If the Company shall furnish to such Holders a certificate, signed by the President of the
Company, stating that in the good faith judgment of the Board of Directors it would be seriously
detrimental to the Company or its shareholders for a registration statement to be filed in the near
future, in which case the Company’s obligation to use its best efforts to register under this
Section 1.5 shall be deferred for a period not to exceed 90 days from the date of receipt of
written request from the Initiating Holders; provided, however, that the Company may not utilize
this right more than once in any 12-month period.

               (b) Underwriting. If the Initiating Holders intend to distribute the Registrable
Securities covered by their request by means of an underwriting, they shall so advise the Company
as part of their request made under Section 1.5(a), and the Company shall so advise the Holders as
part of the notice given pursuant to Section 1.5(a)(i). The right of any Holder to registration
pursuant to Section 1.5 shall be conditioned upon such Holder’s participation in the underwriting
arrangements required by this Section 1.5 and the inclusion of such Holder’s Registrable Securities
in the underwriting, to the extent requested and provided herein.

     The Company shall (together with all Holders proposing to distribute their securities through
such underwriting) enter into an underwriting agreement in customary form with the managing
underwriter selected for such underwriting by the Company and a majority of the Holders.
Notwithstanding any other provision of this Section 1.5, if the managing underwriter advises the
Company in writing that marketing factors require a limitation of the number of shares to be
underwritten, then the Company shall so advise all Holders of Registrable Securities who indicated
their intent to participate in the registration in a timely manner, and the number of shares of
Registrable Securities that may be included in the registration and underwriting shall be allocated
among such Holders in proportion, as nearly as practicable, to the respective number of Registrable
Securities held by such Holders at the time of filing the registration statement, provided,
however, that the number of shares of Registrable Securities to be included in such
underwriting shall not be reduced unless all Worthington Shares, all Other Shares and all other
Securities that are not Registrable Securities (other than Securities to be sold for the account of
the Company) are first
entirely excluded from the underwriting. No Registrable Securities excluded from the
underwriting by reason of the underwriter’s marketing limitation shall be included in such
registration. To facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any Holder to the nearest
100 shares.

     If any Holder of Registrable Securities disapproves of the terms of the underwriting, such
person may elect to withdraw therefrom by written notice to the Company, the managing underwriter
and the Initiating Holders. The Registrable Securities so withdrawn shall also be withdrawn from
registration.

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          1.6 Company Registration.

               (a) Notice of Registration. If at any time or from time to time, the Company shall
determine to register any Common Stock, either for its own account or the account of a security
holder or holders other than (i) a registration relating to employee benefit plans, (ii) a
registration relating to the offer and sale of debt securities, (iii) a registration relating to a
Commission Rule 145 transaction, or (iv) a registration pursuant to Sections 1.5 or 1.7 hereof, the
Company will:

                    (i) promptly give to each Holder written notice thereof; and

                    (ii) include in such registration (and any related qualification under blue sky laws or other
compliance), and in any underwriting involved therein, all the Registrable Securities specified in
a written request or requests made within 15 days after receipt of such written notice from the
Company by any Holder.

               (b) Underwriting. If the registration of which the Company gives notice is for a
registered public offering involving an underwriting, the Company shall so advise the Holders in a
written notice given pursuant to this Section 1.6. In such event, the right of any Holder to
registration pursuant to this Section 1.6 shall be conditioned upon such Holder’s participation in
such underwriting and the inclusion of Registrable Securities in the underwriting to the extent
provided herein.

     All Holders proposing to distribute their securities through such underwriting shall (together
with the Company and the other holders distributing their securities through such underwriting)
enter into an underwriting agreement in customary form with the managing underwriter selected for
such underwriting by the Company. Notwithstanding any other provision of this Section 1.6, if the
managing underwriter advises the Company in writing that marketing factors require a limitation of
the number of shares to be underwritten, then the Company shall so advise all Holders of
Registrable Securities and the number of shares of Registrable Securities that may be included in
the registration and underwriting shall be allocated among all Holders thereof in proportion, as
nearly as practicable, to the respective number of Registrable Securities held by such Holders at
the time of filing the registration statement; provided, however, that, no
Registrable Securities shall be excluded until all Worthington Shares, all Other Shares and all
other Securities that are not Registrable Securities
(other than Securities to be sold for the account of the Company) are first excluded, and
provided further, that, except in the case of the Company’s Initial Public Offering
(where Registrable Securities may be excluded entirely), the number of Registrable Securities
included in such underwriting shall not be reduced below 25% of the total number of shares in the
underwriting. No Registrable Securities excluded from the underwriting by reason of the
underwriter’s marketing limitation shall be included in such registration. To facilitate the
allocation of shares in accordance with the above provisions, the Company or the underwriters may
round the number of shares allocated to any Holder to the nearest 100 shares. The Company may
include shares of Common Stock held by shareholders other than Holders in a registration statement
pursuant to this Section 1.6 to the extent that the amount of Registrable Securities otherwise
includible in such registration statement would not thereby be diminished.

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     If any Holder or other holder disapproves of the terms of any such underwriting, he or she may
elect to withdraw therefrom by written notice to the Company and the managing underwriter. The
Registrable Securities so withdrawn shall also be withdrawn from such registration and, in the case
of the Company’s Initial Public Offering, shall be subject to Section 1.14.

               (c) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 1.6 prior to the effectiveness of such
registration, whether or not any Holder has elected to include securities in such registration.

          1.7 Registration on Form S-3.

               (a) If any Holder or Holders request that the Company file a registration statement on Form
S-3 (or any successor form to Form S-3) for a public offering of Registrable Securities, the
reasonably anticipated aggregate price to the public of which, net of underwriting discounts and
commissions, would exceed $2,000,000, and the Company is then entitled to use Form S-3 under
applicable Commission rules to register the Registrable Securities for such an offering, the
Company will:

                    (i) promptly give written notice of the proposed registration to all other Holders; and

                    (ii) use its best efforts to effect as soon as practicable such registration (including,
without limitation, the execution of an undertaking to file post-effective amendments, appropriate
qualification under applicable blue sky or other state securities laws and appropriate compliance
with applicable regulations issued under the Securities Act and any other governmental requirements
or regulations) as may be so requested and as would permit or facilitate the sale and distribution
of all or such portion of such Registrable Securities as are specified in such request, together
with all or such portion of the Registrable Securities of any Holder or Holders joining in such
request as are specified in a written request received by the Company within 15 days after receipt
of the written notice from the Company; provided, however, that the Company shall
not be obligated to take any action to effect any such registration pursuant to this Section 1.7:

                         (1) if the Company, within ten (10) days of the receipt of the request for registration
pursuant to this Section 1.7, gives notice of its bona fide intention to effect the filing of a
registration statement with the Commission within ninety (90) days of receipt of such request
(other than with respect to a registration statement relating to a Rule 145 transaction or an
employee benefit plan or any other registration which is not appropriate for the registration of
Registrable Securities);

                         (2) during the period starting with the date sixty (60) days prior to the Company’s estimated
date of filing of, and ending on the date three months immediately following, the effective date of
any registration statement pertaining to Securities of the Company (other than with respect to a
registration statement relating to a Rule 145 transaction or an employee benefit plan), provided
that the Company is actively employing in good faith all reasonable efforts to cause such
registration statement to be filed and become effective; or

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                         (3) if the Company shall furnish to such Holder or Holders a certificate signed by the
President of the Company stating that in the good faith judgment of the Board of Directors it would
be seriously detrimental to the Company or its shareholders for registration statements to be filed
in the near future, then the Company’s obligation to use its best efforts to file a registration
statement shall be deferred for a period not to exceed 90 days from the receipt of the request to
file such registration by such Holder or Holders; provided further, however, that
the Company may not utilize the rights provided for in subsections (1) and (2) above and this
subsection (3) more than once in total in any twelve month period. For the avoidance of doubt, if
the Company utilizes any of the rights provided for in subsections (1), (2) and (3), it shall not
have the right to utilize the same right again; nor shall it have the right to utilize any of the
other rights provided in subsections (1), (2) and (3) for twelve months.

               (b) Underwriting. If the Holders requesting registration intend to distribute the
Registrable Securities covered by their request by means of an underwriting, they shall so advise
the Company as part of their request made under Section 1.7(a), and the Company shall so advise the
Holders as part of the notice given pursuant to Section 1.7(a)(i). The substantive provisions of
Section 1.5(b) shall otherwise apply to such registration.

          1.8 Expenses of Registration. All Registration Expenses incurred in connection with
any registration pursuant to Sections 1.5, 1.6 and 1.7 shall be borne by the Company. If a
registration proceeding is begun upon the request of Holders pursuant to Section 1.5 or 1.7, but
such request is subsequently withdrawn at the request of the Holders, then the Holders of
Registrable Securities to have been registered may either: (i) bear all Registration Expenses of
such proceeding, pro rata on the basis of the number of shares to have been registered, in which
case the Company shall be deemed not to have effected a registration pursuant to Section 1.5(a) or
1.7(a) of this Agreement as applicable; provided, however, that the Company, and
not the Holders, shall be required to pay for the Registration Expenses if the Holders learn of a
materially adverse change in the condition, business, or prospects of the Company from that known
to the Holders at the time of their request and have withdrawn the request promptly following
discovery of such material adverse
change; or (ii) if the registration is being effected pursuant to Section 1.5, require the
Company to bear all Registration Expenses of such proceeding, in which case the Company shall be
deemed to have effected a registration pursuant to Section 1.5(a). Unless otherwise stated, all
other Selling Expenses relating to securities registered on behalf of the Holders shall be borne by
the Holders of the registered securities included in such registration pro rata on the basis of the
number of shares so registered, provided that to the extent a Holder elects to
retain its own counsel (an “Additional Counsel”) separate from the counsel for all the Holders
permitted pursuant to the definition of “Registration Expenses” under Section 1.1, then such Holder
shall exclusively bear the costs of such Additional Counsel.

          1.9 Registration Procedures. In the case of each registration, qualification or
compliance effected by the Company pursuant to this Section 1, the Company will keep each Holder
advised in writing as to the initiation of each registration, qualification and compliance and as
to the completion thereof. At its expense the Company will, as expeditiously as reasonably
possible:

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               (a) Prepare and file with the Commission a registration statement with respect to such
Registrable Securities and use its best efforts to cause such registration statement to become
effective, and, upon the request of the Holders of a majority of the Registrable Securities
registered thereunder, keep such registration statement effective for a period of up to one hundred
twenty (120) days or until the distribution described in the registration statement has been
completed; provided, however, that such 120-day period shall be extended for a
period of time equal to the period the Holder refrains from selling any securities included in such
registration at the request of an underwriter of Common Stock (or other securities) of the Company.

               (b) Prepare and file with the Commission, in consultation with the Holders, such amendments
and supplements to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration statement.

               (c) Furnish to the Holders participating in such registration and to the underwriters of the
securities being registered such reasonable number of copies of the registration statement,
preliminary prospectus, final prospectus and such other documents as such underwriters may
reasonably request in order to facilitate the public offering of such securities.

               (d) Use its best efforts to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by the Holders; provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent to service of
process in any such states or jurisdictions, unless the Company is already subject to service in
such jurisdiction and except as may be required by the Securities Act.

               (e) In the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing
underwriter of such offering. Each Holder participating in such underwriting shall also enter
into and perform its obligations under such an agreement.

               (f) Notify each Holder of Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the Securities Act of the
happening of any event as a result of which the prospectus included in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein not misleading or
incomplete in light of the circumstances then existing, and at the request of any such Holder,
prepare and furnish to such Holder a reasonable number of copies of a supplement to or an amendment
of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such
shares, such prospectus shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading or incomplete in the light of the circumstances then existing.

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               (g) Cause all such Registrable Securities registered pursuant hereunder to be listed on each
securities exchange, or quoted in a U.S. automated inter-dealer quotation system, as the case may
be, on which similar securities issued by the Company are then listed or quoted.

               (h) Provide a transfer agent and registrar for all Registrable Securities registered pursuant
hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the
effective date of such registration.

               (i) In the event of any underwritten public offering, cooperate with the selling Holders, the
underwriters participating in the offering and their counsel in any due diligence investigation
reasonably requested by the selling Holders or the underwriters in connection therewith, and
participate, to the extent reasonably requested by the managing underwriter for the offering or the
selling Holder, in efforts to sell the Registrable Securities under the offering (including,
without limitation, participating in “roadshow” meetings with prospective investors) that would be
customary for underwritten primary offerings of a comparable amount of equity securities by the
Company.

          1.10 Indemnification.

               (a) The Company will indemnify and defend each Holder, each of its officers and directors and
partners, and each person controlling such Holder within the meaning of Section 15 of the
Securities Act, with respect to which registration, qualification or compliance is being effected
pursuant to this Section 1, and each underwriter, if any, and each person who controls any
underwriter within the meaning of Section 15 of the Securities Act, against all expenses, claims,
losses, damages or liabilities (or actions in respect thereof), including any of the foregoing
incurred in settlement of any litigation, commenced or threatened, arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in any registration
statement, prospectus, preliminary prospectus, offering circular or other document, or any
amendment or supplement thereto, incident to any such registration, qualification or compliance, or
based on any
omission (or alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances in which they were made,
not misleading, or any violation or any alleged violation by the Company of the Securities Act or
the Exchange Act or any state securities law, or any rule or regulation promulgated thereunder,
applicable to the Company in connection with any such registration, qualification or compliance,
and the Company will reimburse each such Holder, each of its officers and directors, and each
person controlling such Holder, each such underwriter and each person who controls any such
underwriter, for any legal and any other expenses reasonably incurred in connection with
investigating, preparing or defending any such claim, loss, damage, liability or action, as such
expenses are incurred, provided that the Company will not be liable in any such case to the extent
that any such claim, loss, damage, liability or expense arises out of or is based on any untrue
statement or omission or alleged untrue statement or omission, made in reliance upon and in
conformity with written information furnished to the Company by an instrument duly executed by such
Holder, controlling person or underwriter and stated to be specifically for use therein.

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               (b) Each Holder will, if Registrable Securities held by such Holder are included in the
securities as to which such registration, qualification or compliance is being effected, indemnify
the Company, each of its directors and officers, each underwriter, if any, of the Company’s
securities covered by such a registration statement, each person who controls the Company or such
underwriter within the meaning of Section 15 of the Securities Act, and each other such Holder,
each of its officers and directors and each person controlling such Holder within the meaning of
Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement)
of a material fact contained in any such registration statement, prospectus, offering circular or
other document, or any omission (or alleged omission) to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, persons, underwriters or control persons for
any legal or any other expenses reasonably incurred in connection with investigating or defending
any such claim, loss, damage, liability or action, as such expenses are incurred, in each case to
the extent, but only if and to the extent, that such untrue statement (or alleged untrue statement)
or omission (or alleged omission) is made in such registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with written information furnished to
the Company by an instrument duly executed by such Holder and stated to be specifically for use
therein; provided, however, that the liability of any Holder shall be limited to
the net proceeds received by such Holder from the sale of Securities pursuant to such registration.

               (c) Each party entitled to indemnification under this Section 1.10 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct
the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval
shall not unreasonably be withheld), and the Indemnified Party
may participate in such defense at such party’s expense; provided, however,
that an Indemnified Party (together with all other Indemnified Parties which may be represented
without conflict by one counsel) shall have the right to retain one separate counsel, with the fees
and expenses to be paid by the Indemnifying Party, if representation of such Indemnified Party by
the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential
differing interests between such Indemnified Party and any other party represented by such counsel
in such proceeding. The failure of any Indemnified Party to give notice as provided herein shall
not relieve the Indemnifying Party of its obligations under this Section 1 unless, and only to the
extent that, the failure to give such notice is materially prejudicial to an Indemnifying Party’s
ability to defend such action. No Indemnifying Party, in the defense of any such claim or
litigation, shall, except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in
respect to such claim or litigation.

               (d) If the indemnification provided for in this Section 1.10 is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party with respect to any loss,

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liability, claim,
damage, or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, liability, claim, damage, or expense in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions that resulted in such
loss, liability, claim, damage, or expense as well as any other relevant equitable considerations
(except to the extent that contribution is not permitted under Section 11(f) of the Securities
Act); provided, however, that, no Holder will be required to pay any amount under
this subsection 1.10(d) in excess of the net proceeds from the sale of all Registrable Securities
offered and sold by such Holder pursuant to such registration statement. The relative fault of the
Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission to state
a material fact relates to information supplied by the Indemnifying Party or by the Indemnified
Party and the parties’ relative intent, knowledge, access to information, and opportunity to
correct or prevent such statement or omission.

               (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control with respect to the rights and obligations of each of the
parties to such underwriting agreement.

               (f) The obligations of the Company and Holders under this Section 1.10 shall survive the
completion of any offering of Registrable Securities in a registration statement under this Section
1, and otherwise.

          1.11 Information by Holder. The Holder or Holders of Registrable Securities included
in any registration shall furnish to the Company such information regarding such Holder or Holders,
the Securities held by them and the distribution proposed by such Holder or Holders as the Company
may reasonably request in writing and as shall be required in connection with any registration
referred to in this Section 1.

          1.12 Reports Under Securities Exchange Act of 1934. With a view to making available
to the Holders the benefits of Rule 144 promulgated under the Securities Act and any other rule or
regulation of the Commission that may at any time permit a Holder to sell securities of the Company
to the public without registration or pursuant to a registration on Form S-3, the Company agrees to
use its best efforts to:

               (a) make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act, at all times after the effective date that the Company becomes
subject to the reporting requirements of the Securities Act or the Exchange Act;

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               (b) file with the Commission in a timely manner all reports and other documents required of
the Company under the Securities Act and the Exchange Act (at any time after it has become subject
to such reporting requirements);

               (c) register its Common Stock under Section 12 of the Exchange Act at such time as it is
required to do so pursuant to the Exchange Act; and

               (d) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company as to its compliance with the reporting
requirements of Rule 144 (at any time after ninety (90) days after the effective date of the first
registration statement filed by the Company), the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), or that it qualifies as a registrant
whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a
copy of the most recent annual or quarterly report of the Company and such other reports and
documents so filed by the Company, and (iii) such other information in the possession of or
reasonably obtainable by the Company as may be reasonably requested in availing any Holder of any
rule or regulation of the Commission which permits the selling of any such securities without
registration or pursuant to such form.

          1.13 Transfer of Registration Rights. The rights to cause the Company to register
Registrable Securities granted to the Investors under Sections 1.5, 1.6 and 1.7 may be assigned to
a transferee or assignee in connection with any transfer or assignment of Eligible Securities by an
Investor; provided that (a) such transfer may otherwise be effected in accordance with applicable
securities laws, (b) notice of such assignment is given to the Company, (c) such transferee is a
Permitted Transferee and (d) such transferee or assignee agrees to be bound by and subject to the
terms and conditions of this Agreement.

          1.14 Standoff Agreement.

               (a) Each Holder agrees in connection with the first sale of the Company’s Common Stock in a
firm commitment underwritten public offering pursuant to an effective registration statement under
the Securities Act, upon notice by the Company or the underwriters managing such public offering,
not to sell, make any short sale of, loan, pledge (or otherwise encumber or hypothecate), grant any
option for the purchase of, or otherwise directly or indirectly dispose of any Securities (other
than those included in the registration) without the prior written consent of the Company and such
managing underwriters for such period of time as the Board of Directors establishes pursuant to its
good faith negotiations with such managing underwriters; provided, however that:

                    (i) such agreement shall not exceed one hundred eighty (180) days;

                    (ii) such agreement shall not apply to transfers to an Affiliate, provided that such Affiliate
agrees to be bound by the terms of such agreement, to the same extent as if such transferee were
the original party thereunder;

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                    (iii) a Holder shall not be subject to such agreement unless (A) all executive officers and
directors of the Company, (B), all shareholders of the Company holding more than 1% of the
Company’s outstanding capital stock; and (C) all other Holders and holders of other registration
rights, are subject to or obligated to enter into similar agreements; and

                    (iv) if and when any person identified in clause (iii) is released, in whole or in part, from
such agreement (whether or not such release is contemplated at the time of the offering) or if any
such agreement is terminated, the Holder shall be concurrently released on a pro rata basis based
on the number of shares held by such person and the Holder.

               (b) Each Holder agrees that prior to the Initial Public Offering it will not transfer
securities of the Company unless each transferee agrees in writing to be bound by all of the
provisions of this Section 1.14; provided that this Section 1.14(b) shall not apply to transfers
pursuant to a registration statement.

               (c) Each Holder hereby consents to the placement of stop transfer orders with the Company’s
transfer agent in order to enforce the foregoing provision and agrees to execute a market standoff
agreement with said underwriters in customary form consistent with the provisions of this Section
1.14.

          1.15 No Right to Delay Registration. No holder shall restrain, enjoin, or otherwise
delay any registration hereunder, notwithstanding any controversy that might arise with respect to
the interpretation or implementation of this Agreement.

          1.16 Termination of Rights. No Holder shall be entitled to exercise any right
provided for in this Section 1 after the earlier of (i) five (5) years following the consummation
of the Initial Public Offering, and (ii) that date following the Initial Public Offering upon which
each Holder holds less than 1% of the then issued and outstanding shares of capital stock of the
Company and all such shares may be sold under Section 5 of the Securities Act whether pursuant to
Rule 144 or another applicable exemption during any 90 day period. All other provisions hereof
relating to registration rights shall continue to be effective despite any termination of such
registration rights pursuant to this section.

          1.17 Limitations on Subsequent Registration Rights. From and after the date of this
Agreement, the Company shall not enter into any agreement granting any holder or prospective holder
of any securities of the Company registration rights with respect to such securities unless (i)
such new registration rights, are subordinate to the registration rights granted Holders hereunder
and include similar market stand-off obligations or (ii) such new registration rights are approved
by the Holders of 50% of the Registrable Securities then held by Holders (assuming exercise or
conversion of all outstanding Eligible Securities); provided, however, that
Warrantholders may enter into this Agreement by executing and delivering a counterpart signature
page to this Agreement.

SECTION 2

Affirmative Covenants of the Company

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     The Company hereby covenants and agrees as follows:

          2.1 Delivery of Financial Statements. The Company will furnish to each Investor who
holds at least 40,000 shares of Eligible Securities (as adjusted for stock splits and
combinations):

               (a) as soon as reasonably practicable, an income statement for such fiscal year, a balance
sheet of the Company and statement of shareholder’s equity as of the end of such year, and a cash
flow statement for such year, such year-end financial reports to be in reasonable detail, prepared
in accordance with generally accepted accounting principles (“GAAP”), and audited and certified by
independent public accountants of nationally recognized standing selected by the Company; and

               (b) as soon as practicable, but in any event within forty-five (45) days after the end of each
of the first three (3) quarters of each fiscal year of the Company, an unaudited income statement,
cash flow statement for such fiscal quarter and an unaudited balance sheet as of the end of such
fiscal quarter.

          2.2 Additional Information Rights.

               (a) Budget and Operating Plan. The Company will furnish to each Investor who holds at
least 750,000 shares of Eligible Securities (as adjusted for stock splits and
combinations) as soon as practicable upon approval or adoption by the Company’s Board of
Directors, and in any event within 15 days prior to the start of a fiscal year, the Company’s
budget and operating plan for such fiscal year.

               (b) Other Information. The Company will furnish to each Investor who holds at least
750,000 shares of Eligible Securities (as adjusted for stock splits and combinations) such other
information relating to the financial condition, business, prospects or corporate affairs of the
Company as such Investor may from time to time request; provided, however, that the
Company shall not be obligated under this subsection (b) or any other subsection of Section 2.2 to
provide information which it deems in good faith to be a trade secret or similar confidential
information.

               (c) Inspection. The Company shall permit each Investor who holds at least 750,000
shares of Eligible Securities (as adjusted for stock splits and combinations), at such Investor’s
expense, to visit and inspect the Company’s properties, to examine its books of account and records
and to discuss the Company’s affairs, finances and accounts with its officers, all at such
reasonable times and during normal working hours as may be requested by such Investor;
provided, however, that the Company shall not be obligated under this subsection
(c) or any other subsection of Section 2.2 to provide access to information which it deems in good
faith to be a trade secret or similar confidential information.

               (d) Monthly Financial Statements. The Company will furnish to each Investor who holds
at least 750,000 shares of Eligible Securities (as adjusted for stock splits and combinations),
upon the request of such Investors, within thirty (30) days of the end of each month,

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an unaudited
income statement and cash flow statement and unaudited balance sheet for and as of the end of such
month, in reasonable detail.

          2.3 Confidentiality. Each Investor agrees to use commercially reasonable efforts to
maintain the confidentiality of information obtained pursuant to this Section 2, provided that such
obligation shall not apply to (i) information previously in possession or independently developed
by Investor, (ii) information publicly available other than as a result of breach of this provision
(iii) information required to be disclosed by statute, regulation or court or administrative order.

          2.4 Visitation Rights. One representative chosen collectively by LB I Group Inc.,
Lehman Brothers P.A. LLC, Lehman Brothers Partnership Account 2000/2001, L.P. and Lehman Brothers
Offshore Partnership Account 2000/2001, L.P. (collectively, “Lehman”), one representative chosen
collectively by EuclidSR Partners, L.P. and EuclidSR Biotechnology Partners, L.P. (collectively,
“EuclidSR”), one representative chosen by Piper Jaffray Healthcare Fund III, L.P. (“Piper
Jaffray”), one representative chosen by GE Capital Equity Investments, Inc. (“GE Capital”), one
representative chosen collectively by Interwest Investors VII, L. P. and Interwest Partners VII,
L.P. (collectively, “Interwest”), one representative chosen by AllianceBernstein L.P. (“Alliance”),
and one representative chosen by BMSIF shall have the right to attend all meetings of the Board of
Directors, including meetings of any committee of the Board and including the right to participate
in any telephonic board meetings, so long as such Investor holds at least 750,000 shares
of Eligible Securities (as adjusted for stock splits and combinations and the like). Said
representative(s) shall be provided with notice of the meetings in the same manner at the same time
as the members of the Board of Directors and shall be provided with any materials distributed to
the Board of Directors in connection with board meetings. The foregoing visitation rights may be
limited by the Board of Directors if (i), upon the advice of counsel, the Board of Directors
determines that exclusion is required by third party confidentiality agreements, (ii) the Board is
discussing engaging Investor or an affiliate of Investor as a financial advisor or underwriter; or
(iii) the Board is discussing a material transaction with an entity in which Investor or a private
equity fund affiliated with Investor is a 5% or greater shareholder, or (iv) the Board determines
in good faith upon advice of counsel that limitations are required to maintain attorney-client
privilege.

          2.5 Stock Option Vesting. Unless otherwise decided by the Board of Directors, all
option grants to employees shall vest over a four-year period with 25% of the shares subject to
each option vesting a year after commencement of employment and the remainder of the shares vesting
in equal amounts on a monthly basis thereafter.

          2.6 Insurance. The Company shall, subject to the approval of the Board of Directors,
maintain such fire, casualty and general liability insurance with coverages and in amounts as shall
be determined by the Board of Directors. The Company agrees to maintain in full force and effect
directors and officers liability insurance with coverage in the aggregate amount of amount of $2
million covering all of its directors. The Company will maintain coverage for the Series C
Directors (as defined in the Voting Agreement) and the Series D Directors (as defined in the Voting
Agreement) under such directors and officers liability insurance at all times commencing upon the
Closing (as defined in the Purchase Agreement).

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          2.7 Proprietary Information Agreements. Unless otherwise determined by the Board of
Directors, all future employees and consultants of the Company shall be required to execute and
deliver a proprietary information and invention assignment agreement.

          2.8 Invention Assignments. The Company agrees to use commercially reasonable efforts
to obtain from each of the individual contributing inventors for each invention that forms any part
of any patent or patent application owned by or licensed to the Company, executed invention
assignments in favor of the Company or the appropriate third party licensor, as the case may be.

          2.9 Key-Man Life Insurance. The Company shall obtain and maintain key-man life
insurance in such amount as is determined by the Company’s Board of Directors, on Gajus
Worthington. Such policy shall name the Company as loss payee and shall not be cancelable by the
Company without prior unanimous approval of the Board of Directors.

          2.10 Compliance with Laws. The Company shall use its best efforts to comply with the
requirements of all applicable laws, rules, regulations and orders of any governmental authority,
where noncompliance would have a material adverse effect on the Company’s business and financial
condition.

          2.11 Termination of Covenants. The covenants set forth in Section 2 shall terminate
on, and be of no further force or effect after, the closing of the Company’s Initial Public
Offering. The rights granted pursuant to this Section 2 are not transferable other than to
Affiliates of Holders.

SECTION 3

Right of First Offer For Company Securities

          3.1 Right of First Offer. Subject to the terms and conditions specified in this
Section 3, the Company hereby grants to each Investor a right of first offer with respect to future
sales by the Company of its Securities. An Investor shall be entitled to apportion the right of
first offer hereby granted among itself and its partners and Affiliates in such proportions as it
deems appropriate.

     Each time the Company proposes to offer any Securities in a Financing (as defined below), the
Company shall first make an offering of such Securities to each Investor in accordance with the
following provisions:

               (a) The Company shall deliver a notice (“Notice”) to each Investor stating (i) its intention
to offer such Securities for sale, (ii) the number of such Securities to be offered (the “Offered
Securities”), (iii) the price, if any, for which it proposes to offer such Securities, (iv) the
terms of such offer and (v) the Offer Amount (as defined below).

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               (b) Within fifteen (15) calendar days after receipt of the Notice, each Investor may elect to
purchase, at the price and on the terms specified in the Notice, such Securities in an amount up to
the Offer Amount by providing the Company with written notice of its election.

               (c) An election by an Investor pursuant to Section 3.1(b) to purchase Offered Securities shall
not be considered a binding commitment on the Investor unless and until the Company receives
binding commitments to purchase on the terms and conditions contained in the Notice substantially
all of the Offered Securities which the Investors have not elected to purchase.

     Notwithstanding the foregoing, the Company and each of the Investors acknowledge and agree
that Lighthouse shall have the opportunity to invest not less than $250,000 in connection with the
first Financing completed after the date of this Agreement that involves the sale and issuance by
the Company of shares of the Company’s convertible preferred stock with aggregate gross proceeds to
the Company of at least $3 million. In the event that Lighthouse’s right to purchase Offered
Securities as otherwise set forth in this Section 3.1 would not permit such $250,000 investment,
then each of the Investors agrees that its respective right to purchase Offered Securities pursuant
to this Section 3.1 may be cut-back (proportionately with all other Investors based on the number
of shares of Eligible Securities held by the Investors) in such amounts as may be necessary to
permit the exercise of Lighthouse’s rights as set forth herein.

          3.2 Sale of Securities by Company. Within 60 days of the expiration of the period
described in Section 3.1(b), any Offered Securities which the Investors have not elected to
purchase may be sold by the Company to any person or persons at a price not less than, and upon
terms no more favorable to the offeree than, those specified in the Notice. If the Company does
not complete the sale of all such Offered Securities within said 60-day period, the rights of the
Investors with respect to any such unsold Offered Securities shall be deemed to be revived.

          3.3 Offer Amount. The “Offer Amount” shall equal that percentage of the Offered
Securities equal to the number of shares of Eligible Securities held by an Investor which are
Registrable Securities divided by the total number of outstanding shares of Common Stock of the
Company. For the purposes of the foregoing calculations, all outstanding options and warrants
shall be deemed to be exercised and all Preferred Stock shall be deemed to have been converted into
Common Stock at the prevailing conversion rate.

          3.4 Financing. “Financing” shall mean an offering or series of related offerings of
Securities by the Company for purposes of raising working capital in a minimum amount of $250,000.
Financing shall not include (i) the issuance or sale of shares of Common Stock or options to
purchase Common stock to employees, officers, directors or consultants for the primary purpose of
soliciting or retaining their services in such amount as shall have been approved by the Board of
Directors, (ii) the issuance or sale of Securities to leasing entities or financial institutions in
connection with commercial leasing or borrowing transactions approved by the Board of Directors,
(iii) the issuance or sale of Securities to third party providers of goods or services in
connection with transactions approved by the Board of Directors; (iv) the sale of Securities in a
registered public offering, (v) any issuances of Securities in connection with any stock split,
stock dividend or recapitalization by the Company, (vi) the issuance of Securities at a price (on
an as converted to

-20-

 

Common Stock basis) below the original issue price of the Company’s Series E
Preferred Stock (as adjusted for stock splits, recapitalizations and like events) in connection
with sponsored research, collaboration, technology license, development, OEM, marketing or other
similar agreements or any joint venture or strategic alliance, if such issuance is approved
unanimously by the Board of Directors, provided that the issuance of the Company’s
Series E Preferred Stock to BMSIF or any Affiliate thereof or any related entity to the Singapore
Economic Development Board pursuant to Section 3.4(xii) below at a price below the original issue
price of the Company’s Series E Preferred Stock (as adjusted for stock splits, recapitalizations
and like events) shall also not be a Financing hereunder, (vii) the issuance of Securities at a
price (on an as converted to Common Stock basis) at or above the original issue price of the
Company’s Series E Preferred Stock (as adjusted for stock splits, recapitalizations and like
events) in connection with sponsored research, collaboration, technology license, development, OEM,
marketing or other similar agreements or any joint venture or strategic alliance, if such issuance
is approved by the Board of Directors, (viii) the issuance of Securities at a price (on an as
converted to Common Stock basis) below the original issue price of the Company’s Series E Preferred
Stock (as adjusted for stock splits, recapitalizations and like events) in connection with the
acquisition of another corporation by the Company by merger, consolidation, or purchase of all or
substantially all of the assets or shares of such corporation unanimously approved by the Board of
Directors, (ix) the issuance of Securities at a price (on an as
converted to Common Stock basis) at or above the original issue price of the Company’s Series
E Preferred Stock (as adjusted for stock splits, recapitalizations and like events) in connection
with the acquisition of another corporation by the Company by merger, consolidation, or purchase of
all or substantially all of the assets or shares of such corporation approved by the Board of
Directors; (x) shares of Series E Preferred Stock issued pursuant to the terms of the Purchase
Agreement; (xi) interest-bearing convertible promissory notes in the aggregate principal amount of
$8 million issued or issuable pursuant to the CNPA and/or the CNA and any Securities issued on
conversion thereof; and (xii) additional interest-bearing convertible promissory notes to be issued
after the date hereof in the aggregate principal amount of up to $15 million to BMSIF or any
Affiliate thereof or any related entity to the Singapore Economic Development Board, and any
Securities issued on conversion thereof.

          3.5 Termination of Right of First Offer. The right of first offer contained in this
section shall not apply to and shall terminate upon the closing of an Initial Public Offering. The
right of first offer granted under this Section 3 is transferable to transferees of at least
750,000 shares of Registrable Securities (as adjusted for stock splits, combinations and the like)
or to Affiliates.

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SECTION 4

Right of First Offer with Respect to Founder Shares

          4.1 Notice of Sales. Should a Founder (a “Seller”) propose to accept one or more bona
fide offers (collectively, the “Purchase Offer”) from any persons (“Purchasers”) to purchase
Founders Shares from such Seller (other than as set forth 4.2(d) hereof), then such Seller shall,
promptly after exercise or termination of any rights of first refusal held by the Company, deliver
a notice (the “Notice”) to the Company and all Investors holding more than 750,000 shares of
Eligible Securities (“Eligible Investors”).

          4.2 Purchase Right. Each Eligible Investor shall have the right, exercisable upon
written notice to such Seller within ten (10) business days after receipt of the Notice, to
purchase Founders Shares on the terms and conditions specified in the Purchase Offer. To the
extent an Eligible Investor exercises its right to purchase such shares in accordance with the
terms and conditions set forth below, the number of shares of stock which such Seller may sell to
the Purchasers pursuant to the Purchase Offer shall be correspondingly reduced. The purchase right
of each Eligible Investor shall be subject to the following terms and conditions:

               (a) Calculation of Shares. Each Eligible Investor may purchase all or any part of
that number of Founder Shares equal to the number obtained by multiplying (i) the aggregate number
of Founders Shares covered by the Purchase Offer by (ii) a fraction, the numerator of which is the
number of shares of Common Stock of the Company at the time owned by such Eligible Investor and the
denominator of which is the number of shares of Common Stock of the Company then outstanding. For
the purposes of the foregoing calculations, all outstanding options and
warrants shall be deemed to be exercised and all Preferred Stock shall be deemed to have been
converted into Common Stock at the prevailing conversion rate.

               (b) Delivery of Consideration. Each Eligible Investor may effect its purchase right
by promptly delivering to such Seller a written notice and a check or wire transfer equal to the
purchase price specified in the Purchase Offer for the number of shares the Eligible Investor
desires to purchase pursuant to this Section 4.2.

               (c) Certificate. Within ten (10) business days of receipt of Eligible Investor’s
funds pursuant to Section 4.2(c), Seller shall deliver to such Eligible Investor a certificate or
certificates representing the shares of Founder Shares purchased by such Eligible Investor.

               (d) Permitted Transactions. The participation rights in this Section 4 shall not
pertain or apply to:

                    (i) Any transfer to a revocable grantor trust with respect to which the Founder and members of
his family are the sole beneficiaries;

                    (ii) Any repurchase of Founders Shares by the Company;

-22-

 

                    (iii) Any exercise by the Company of a right or remedy under the terms of any loan, security
or stock pledge agreement where the Founders Shares serve as security for a loan made by the
Company;

                    (iv) Any transfer to any ancestors or descendants or spouse of a Founder or to a trustee for
their benefit or to a custodian for the benefit of a Founders’ issue; or

                    (v) Any bona fide gift;

provided, however, that such Founder shall inform the Eligible Investors of such transfer or gift
(other than a transfer pursuant to clause (ii) or (iii)) prior to effecting it and the transferee
or donee (if other than the Company) shall furnish the Company and the Eligible Investors with a
written agreement to be bound by and comply with all applicable provisions of this Agreement.

          4.3 Sale of Securities by Founder. Within 60 days of the expiration of the period
described in the first paragraph of Section 4.2, any Founders Shares covered by the Purchase Offer
which the Eligible Investors have not elected to purchase may be sold by the Seller to the
Purchasers on the terms and conditions of the Purchase Offer. If the Seller does not complete the
sale of all Founders Shares covered by the Purchase Offer within such period, the rights of the
Eligible Investors with respect to any such unsold Founders Shares shall be deemed to be revived.

          4.4 Termination and Transfer. The restrictions imposed and rights granted by this
Section 4 shall not apply to and shall terminate immediately prior to the closing of the Company’s
Initial Public Offering. Securities received pursuant to any stock dividend, stock split,
recapitalization, or exercise of a conversion right shall be subject to this Section 4 to the
same extent as the shares of the Company with respect to which they were issued. The right of
first offer granted under this Section 4 is transferable to transferees of at least 750,000 shares
of Registrable Securities (as adjusted for stock splits, combinations and the like) or to
Affiliates.

          4.5 Prohibited Transfer. Any attempt by a Founder to transfer Founders Shares in
violation of Section 4 hereof shall be void and the Company agrees it will not effect such a
transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the
written consent of two-thirds (2/3) in interest of the Eligible Investors.

SECTION 5

Right of Co-Sale

          5.1 Notice of Sales. Should a Founder (a “Seller”) propose to accept one or more bona
fide offers (collectively, the “Purchase Offer”) from any persons (“Purchasers”) to purchase
Founders Shares from such Seller (other than as set forth 5.2(d)), then such Seller shall, promptly
after exercise or termination of any rights of first refusal held by the Company or the Eligible
Investors, deliver a notice (the “Notice”) to the Company and all Eligible Investors describing the
terms and conditions of the Purchase Offer.

-23-

 

          5.2 Participation Right. Each Eligible Investor shall have the right, exercisable
upon written notice to such Seller within fifteen (15) business days after receipt of the Notice,
to participate in such Seller’s sale of stock pursuant to the specified terms and conditions of
such Purchase Offer. To the extent an Eligible Investor exercises such right of participation in
accordance with the terms and conditions set forth below, the number of shares of stock which such
Seller may sell pursuant to such Purchase Offer shall be correspondingly reduced. The right of
participation of each Eligible Investor shall be subject to the following terms and conditions:

               (a) Calculation of Shares. Each Eligible Investor may sell all or any part of that
number of shares of Common Stock of the Company equal to the number obtained by multiplying (i) the
aggregate number of Founders Shares covered by the Purchase Offer by (ii) a fraction, the numerator
of which is the number of shares of Common Stock of the Company at the time owned by such Eligible
Investor and the denominator of which is the number of shares of Common Stock of the Company then
outstanding. For the purposes of the foregoing calculations, all outstanding options and warrants
shall be deemed to be exercised and all Preferred Stock shall be deemed to have been converted into
Common Stock at the prevailing conversion rate.

               (b) Delivery of Certificates. Each Eligible Investor may effect its participation in
the sale by delivering to such Seller for transfer to the Purchaser(s) one or more certificates,
properly endorsed for transfer, which represent at least the number of shares of Common Stock which
such Eligible Investor elects to sell pursuant to this Section 5.2.

               (c) Transfer. The stock certificate or certificates which the Eligible Investor
delivers to such Seller pursuant to Section 5.2 shall be delivered by the Seller to the
Purchaser(s) in consummation of the sale of the Securities pursuant to the terms and conditions
specified in the Notice, and such Seller shall promptly thereafter remit to such Eligible Investor
that portion of the sale proceeds to which such Eligible Investor is entitled by reason of its
participation in such sale.

               (d) Permitted Transactions. The participation rights in this Section 5 shall not
pertain or apply to:

                    (i) Any transfer to a revocable grantor trust with respect to which the Seller and members of
his family are the sole beneficiaries;

                    (ii) Any repurchase of Founders Shares by the Company;

                    (iii) Any exercise by the Company of a right or remedy under the terms of any loan, security
or stock pledge agreement where the Founders Shares serve as security for a loan made by the
Company;

                    (iv) Any transfer to any ancestors or descendants or spouse of a Founder or to a trustee for
their benefit or to a custodian for the benefit of a Founders’ issue; or

                    (v) Any bona fide gift;

-24-

 

provided, however, that such Founder shall inform the Eligible Investors of such transfer or gift
(other than a transfer pursuant to clause (ii) or (iii)) prior to effecting it and the transferee
or donee (if other than the Company) shall furnish the Company and the Eligible Investors with a
written agreement to be bound by and comply with all applicable provisions of this Agreement.

          5.3 Sale of Securities by Founder. Within 45 days of the expiration of the period
described in the first paragraph of Section 5.2, any Founders Shares covered by the Purchase Offer
which the Eligible Investors have not elected to purchase may be sold by the Seller to the
Purchasers on the terms and conditions of the Purchase Offer. If the Seller does not complete the
sale of all Founders Shares covered by the Purchase Offer within such period, the rights of the
Eligible Investors with respect to any such unsold Founders Shares shall be deemed to be revived.

          5.4 Termination and Transfer. The restrictions imposed and rights granted by this
Section 5 shall not apply to and shall terminate immediately prior to the closing of the Company’s
Initial Public Offering. Securities received pursuant to any stock dividend, stock split,
recapitalization, or exercise of a conversion right shall be subject to this Section 5 to the same
extent as the shares of the Company with respect to which they were issued. The co-sale right
granted under this Section 5 is transferable to transferees of at least 750,000 shares of
Registrable Securities (as adjusted for stock splits, combinations and the like) or to Affiliates.

          5.5 Prohibited Transfers.

               (a) In the event any Founder should sell any Founders Shares in contravention of the co-sale
rights of the Investors under Section 5 (a “Prohibited Transfer”), the Investors, in addition to
such other remedies as may be available at law, in equity or hereunder, shall have the put option
provided below, and the Founder shall be bound by the applicable provisions of such option.

               (b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell
to the Founder the type and number of shares of Common Stock equal to the number of shares that
such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under
Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the
terms thereof. Such sale shall be made on the following terms and conditions:

                    (i) The price per share at which the shares are to be sold to the Founder shall be equal to
the price per share paid by the third-party transferee(s) to the Founder in the Prohibited
Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder
received cash for his shares. If the Founder did not receive cash but received other property
instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of
the property received by the Founder for his shares, or (B) in cash equal to the fair market value
of the property received by such Founder as determined in good faith by the Company’s Board of
Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible
Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to
the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.

-25-

 

                    (ii) Within thirty (30) days after the later of the dates on which the Eligible Investor (A)
received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited
Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the
Founder the certificate or certificates representing shares to be sold, each certificate to be
properly endorsed for transfer.

                    (iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be
sold by an Eligible Investor pursuant to this Section 5, pay the aggregate purchase price therefor
and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash
or by other means acceptable to the Eligible Investor.

               (c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in
violation of Section 5 hereof shall be void and the Company agrees it will not effect such a
transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the
written consent of two-thirds (2/3) in interest of the Eligible Investors.

SECTION 6

Miscellaneous

          6.1 Governing Law; Jurisdiction. This Agreement shall be construed in accordance
with, and governed in all respects by, the laws of the State of California, as applied to
agreements entered into, and to be performed entirely in such state, between residents of such
state.

     The parties hereto agree to submit to the jurisdiction of the federal and state courts of San
Mateo County, California with respect to the breach or interpretation of this Agreement or the
enforcement of any and all rights, duties, liabilities, obligations, powers, and other relations
between the parties arising under this Agreement.

          6.2 Successors and Assigns. Except as otherwise provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs,
executors and administrators of the parties hereto.

          6.3 Notices, Etc. All notices and other communications required or permitted
hereunder, shall be in writing and shall be sent by facsimile personally delivered, mailed by
registered or certified mail, postage prepaid, return receipt requested, or otherwise delivered by
a nationally-recognized overnight courier, addressed (a) if to an Investor, at Investor’s facsimile
number or address as set forth in the records of the Company or (b) if to any other holder of any
Eligible Securities, at such address as such holder shall have furnished the Company in writing,
or, until any such holder so furnishes an address to the Company, then to and at the address of the
last holder of such Eligible Securities who has so furnished an address or facsimile number to the
Company, or (c) if to a Founder, at such Founder’s facsimile number or address set forth on
EXHIBIT B hereto, or a such other address as such Founder shall have furnished to the
Company in writing, or (d) if to the Company, at its facsimile number or address set forth on the
signature page hereto addressed to the attention of the Corporate Secretary, or at such other
address as the Company

-26-

 

shall have furnished to the Investors. Any such notice or communication
shall be deemed to have been received (A) in the case of personal delivery, on the date of such
delivery, (B) in the case of a nationally-recognized overnight courier, on the next business day
after the date when sent, (C) in the case of mailing, on the third business day following that on
which the piece of mail containing such communication is posted and (D) in the case of delivery via
facsimile, one (1) business day after the date of transmission provided that said transmission is
confirmed telephonically on the date of transmission.

          6.4 Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any holder of any Eligible Securities upon any breach or default of the Company under
this Agreement shall impair any such right, power or remedy of such holder, 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 holder of any
breach or default under this Agreement, or any waiver on the part of any holder 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 or as provided in this Agreement. All remedies, either under this Agreement or
by law or otherwise afforded to any holder, shall be cumulative and not alternative.

          6.5 Third Parties. Nothing in this Agreement, express or implied, is intended to
confer upon any party, other than the parties hereto, and their respective successors and assigns,
any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as
expressly provided herein.

          6.6 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, portions of such provisions, or such provisions in their
entirety, to the extent necessary, shall be severed from this Agreement, and the balance of this
Agreement shall be enforceable in accordance with its terms.

          6.7 Amendment and Waiver. Any provision of this Agreement may be amended or waived
with the written consent of the Company and the Holders of at least two-thirds of the outstanding
shares of the Registrable Securities then held by Holders (assuming the exercise or conversion of
all outstanding Eligible Securities); provided, however, (i) that in the event such
amendment or waiver adversely affects the rights and/or obligations of the Founders under this
Agreement in a different manner than the other Holders, such amendment or waiver shall also require
written consent of the Founders holding a majority of the then outstanding Founders Shares, (ii)
that in the event such amendment or waiver adversely affects the rights and/or obligations of
Lehman, EuclidSR, Piper Jaffray, GE Capital, Interwest, Alliance, and BMSIF under Section 2.4 of
this Agreement, such amendment or waiver shall not be effective as to Lehman, EuclidSR, Piper
Jaffray, GE Capital, Interwest or BMSIF, as the case may be, without the written consent of such
party, and (iii) that in the event such amendment or waiver adversely affects the rights and/or
obligations of Warrantholders under this Agreement in a different manner than the other Holders,
such amendment or waiver shall also require the written consent of Warrantholders holding a

-27-

 

majority of the then outstanding Warrant Shares. Notwithstanding the foregoing, any purchaser of
Series E Preferred Stock pursuant to the Purchase Agreement may become a party to this Agreement by
executing and delivering an additional counterpart signature page to this Agreement and such
purchaser shall be deemed a Holder and an Investor hereunder. The parties agree that Exhibit
A shall be updated automatically without any formal amendment to reflect the addition of any
such additional party. Any amendment or waiver effected in accordance with this paragraph shall be
binding upon each Holder, the Founders, the holder of the Other Shares, Warrantholders and the
Company. In addition, the Company may waive performance of any obligation owing to it, as to some
or all of the Holders, or agree to accept alternatives to such performance, without obtaining the
consent of any other Holder. In the event that an underwriting agreement is entered into between
the Company and any Holder, and such underwriting agreement contains terms differing from this
Agreement, as to any such Holder the terms of such underwriting agreement shall govern.

          6.8 Rights of Holders. Each Holder shall have the absolute right to exercise or
refrain from exercising any right or rights that such holder may have by reason of this Agreement,
including, without limitation, the right to consent to the waiver or modification of any obligation
under this Agreement, and such holder shall not incur any liability to any other holder of any
Securities as a result of exercising or refraining from exercising any such right or rights.

          6.9 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be enforceable against the parties actually executing such counterparts, and all of
which together shall constitute one instrument.

          6.10 Titles and Subtitles. The titles of the paragraphs and subparagraphs of this
Agreement are for convenience of reference only and are not to be considered in construing this
Agreement.

          6.11 Amendment and Restatement of Prior Agreement. The undersigned Prior Investors
who in the aggregate hold at least two-thirds of the outstanding Registrable Securities (as defined
in the Prior Agreement) and the undersigned Founders hereby amend and restate the Prior Agreement
pursuant to Section 6.7 thereof.

          6.12 Waiver of Right of First Offer. The undersigned Prior Investors who in the
aggregate hold at least two-thirds of the outstanding Registrable Securities (as defined in the
Prior Agreement) hereby waive on behalf of all Prior Investors any rights of participation or
notice under Section 3 of this Agreement and the Prior Agreement with respect to the securities
sold pursuant to the Purchase Agreement. By its execution below, Lighthouse waives any right of
participation or notice under Section 3 of this Agreement and Section 3 of the Prior Agreement with
respect to securities sold under the Purchase Agreement.

          6.13 Aggregation of Stock. All shares of Eligible Securities held or acquired by
Affiliated entities or persons shall be aggregated together for the purpose of determining the
availability of any rights under this Agreement.

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          6.14 Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING (WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT.

[Remainder
of Page Left Blank Intentionally]

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FLUIDIGM
CORPORATION
FORM OF

AMENDMENT NO. 1 TO

EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     THIS AMENDMENT NO. 1 (this “Amendment”) to that certain Eighth Amended and Restated Investor
Rights Agreement, dated as of June 13, 2006 (the “Rights Agreement”), by and among Fluidigm
Corporation, a California corporation (the “Company”), and the Investors and Founders named therein
is entered into this 22nd day of December, 2006 by and among the Company and the undersigned,
collectively the Holders of at least two-thirds of the outstanding shares of the Registrable
Securities then held by Holders (assuming the exercise or conversion of all outstanding Eligible
Securities). Capitalized terms not defined herein have the meanings set forth in the Rights
Agreement.

RECITALS

     A. It is contemplated that the Company will sell and issue additional shares of the Company’s
Series E Preferred Stock (“Series E Preferred Stock”) pursuant to that certain Series E Preferred
Stock Purchase Agreement, dated as of June 13, 2006 (the “Purchase Agreement”), by and among the
Company and the Purchasers named therein.

     B. In connection with the sale of additional shares of Series E Preferred Stock, the Company
and the Investors desire to (i) provide that the standoff agreement in Section 1.14 of the Rights
Agreement shall not apply to securities of the Company purchased by certain Holders in the Initial
Public Offering or in the public market for the Company’s securities following the Initial Public
Offering, and (ii) grant visitation rights pursuant to Section 2.4 of the Rights Agreement
collectively to Cross Creek Capital, L.P., Cross Creek Capital Employees’ Fund, L.P. and Wasatch
Small Cap Growth.

     C. The Company and the undersigned Holders of at least two-thirds of the outstanding shares of
the Registrable Securities then held by Holders (assuming the exercise or conversion of all
outstanding Eligible Securities) have agreed to amend the Rights Agreement to provide for the
foregoing changes to the standoff agreement in Section 1.14 and the visitation rights in Section
2.4.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, all of the parties
hereto mutually agree as follows:

     SECTION 7 Amendment to Section 1.14. Section 1.14 (Standoff Agreement) of the Rights
Agreement is hereby amended and restated in its entirety as follows:

               “1.14 Standoff Agreement.

 

 

               (a) Each Holder agrees in connection with the first sale of the Company’s
Common Stock in a firm commitment underwritten public offering pursuant to an
effective registration statement under the Securities Act, upon notice by the
Company or the underwriters managing such public offering, not to sell, make any
short sale of, loan, pledge (or otherwise encumber or hypothecate), grant any option
for the purchase of, or otherwise directly or indirectly dispose of any Securities
(other than those included in the registration) without the prior written consent of
the Company and such managing underwriters for such period of time as the Board of
Directors establishes pursuant to its good faith negotiations with such managing
underwriters; provided, however that:

                    (i) such agreement shall not exceed one hundred eighty (180) days;

                    (ii) such agreement shall not apply to transfers to an Affiliate, provided that
such Affiliate agrees to be bound by the terms of such agreement, to the same extent
as if such transferee were the original party thereunder;

                    (iii) such agreement shall not apply to securities of the Company purchased by
AllianceBernstein Venture Fund I, L.P., SmallCap World Fund, Inc., Cross Creek
Capital, L.P., Cross Creek Capital Employees’ Fund, L.P. or Wasatch Small Cap Growth
or their respective Affiliates in the Initial Public Offering or in the public
market for the Company’s securities following the Initial Public Offering;

                    (iv) a Holder shall not be subject to such agreement unless (A) all executive
officers and directors of the Company, (B), all shareholders of the Company holding
more than 1% of the Company’s outstanding capital stock; and (C) all other Holders
and holders of other registration rights, are subject to or obligated to enter into
similar agreements; and

                    (v) if and when any person identified in clause (iv) is released, in whole or
in part, from such agreement (whether or not such release is contemplated at the
time of the offering) or if any such agreement is terminated, the Holder shall be
concurrently released on a pro rata basis based on the number of shares held by such
person and the Holder.

               (b) Each Holder agrees that prior to the Initial Public Offering it will not
transfer securities of the Company unless each transferee agrees in writing to be
bound by all of the provisions of this Section 1.14; provided that this Section
1.14(b) shall not apply to transfers pursuant to a registration statement.

               (c) Each Holder hereby consents to the placement of stop transfer orders with
the Company’s transfer agent in order to enforce the foregoing provision and agrees
to execute a market standoff agreement with said

-2-

 

underwriters in customary form consistent with the provisions of this Section 1.14.

     SECTION 8 Amendment to Section 2.4. Section 2.4 (Visitation Rights) of the Rights
Agreement is hereby amended and restated in its entirety as follows:

               “2.4 Visitation Rights. One representative chosen collectively by LB I Group
Inc., Lehman Brothers P.A. LLC, Lehman Brothers Partnership Account 2000/2001, L.P. and
Lehman Brothers Offshore Partnership Account 2000/2001, L.P. (collectively, “Lehman”), one
representative chosen collectively by EuclidSR Partners, L.P. and EuclidSR Biotechnology
Partners, L.P. (collectively, “EuclidSR”), one representative chosen by Piper Jaffray
Healthcare Fund III, L.P. (“Piper Jaffray”), one representative chosen by GE Capital Equity
Investments, Inc. (“GE Capital”), one representative chosen collectively by Interwest
Investors VII, L. P. and Interwest Partners VII, L.P. (collectively, “Interwest”), one
representative chosen by AllianceBernstein Venture Fund I, L.P. (“Alliance”), one
representative chosen collectively by Cross Creek Capital, L.P., Cross Creek Capital
Employees’ Fund, L.P. and Wasatch Small Cap Growth (collectively, “Wasatch”), and one
representative chosen by BMSIF shall have the right to attend all meetings of the Board of
Directors, including meetings of any committee of the Board and including the right to
participate in any telephonic board meetings, so long as such Investor holds at least
750,000 shares of Eligible Securities (as adjusted for stock splits and combinations and the
like). Said representative(s) shall be provided with notice of the meetings in the same
manner at the same time as the members of the Board of Directors and shall be provided with
any materials distributed to the Board of Directors in connection with board meetings. The
foregoing visitation rights may be limited by the Board of Directors if (i), upon the advice
of counsel, the Board of Directors determines that exclusion is required by third party
confidentiality agreements, (ii) the Board is discussing engaging Investor or an affiliate
of Investor as a financial advisor or underwriter; or (iii) the Board is discussing a
material transaction with an entity in which Investor or a private equity fund affiliated
with Investor is a 5% or greater shareholder, or (iv) the Board determines in good faith
upon advice of counsel that limitations are required to maintain attorney-client privilege.”

     SECTION 9 Amendment to Section 6.7. Section 6.7 (Amendment and Waiver) of the Rights
Agreement is hereby amended and restated in its entirety as follows:

               “6.7 Amendment and Waiver. Any provision of this Agreement may be amended
or waived with the written consent of the Company and the Holders of at least
two-thirds of the outstanding shares of the Registrable Securities then held by
Holders (assuming the exercise or conversion of all outstanding Eligible
Securities); provided, however, (i) that in the event such amendment
or waiver adversely affects the rights and/or obligations of the Founders under this
Agreement in a different manner than the other Holders, such amendment or waiver
shall also require written consent of the Founders holding a majority of the

-3-

 

then outstanding Founders Shares, (ii) that in the event such amendment or waiver
adversely affects the rights and/or obligations of Lehman, EuclidSR, Piper Jaffray,
GE Capital, Interwest, Alliance, Wasatch or BMSIF under Section 2.4 of this
Agreement, such amendment or waiver shall not be effective as to Lehman, EuclidSR,
Piper Jaffray, GE Capital, Interwest, Alliance, Wasatch or BMSIF, as the case may
be, without the written consent of such party, and (iii) that in the event such
amendment or waiver adversely affects the rights and/or obligations of
Warrantholders under this Agreement in a different manner than the other Holders,
such amendment or waiver shall also require the written consent of Warrantholders
holding a majority of the then outstanding Warrant Shares. Notwithstanding the
foregoing, any purchaser of Series E Preferred Stock pursuant to the Purchase
Agreement may become a party to this Agreement by executing and delivering an
additional counterpart signature page to this Agreement and such purchaser shall be
deemed a Holder and an Investor hereunder. The parties agree that Exhibit A
shall be updated automatically without any formal amendment to reflect the addition
of any such additional party. Any amendment or waiver effected in accordance with
this paragraph shall be binding upon each Holder, the Founders, the holder of the
Other Shares, Warrantholders and the Company. In addition, the Company may waive
performance of any obligation owing to it, as to some or all of the Holders, or
agree to accept alternatives to such performance, without obtaining the consent of
any other Holder. In the event that an underwriting agreement is entered into
between the Company and any Holder, and such underwriting agreement contains terms
differing from this Agreement, as to any such Holder the terms of such underwriting
agreement shall govern.”

     SECTION 10 Governing Law. This Amendment shall be construed in accordance with, and
governed in all respects by, the laws of the State of California, as applied to agreements entered
into, and to be performed entirely in such state, between residents of such state.

     SECTION 11 Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be enforceable against the parties actually executing such
counterparts, and all of which together shall constitute one instrument.

[Remainder of Page Intentionally Blank]

-4-

 

FLUIDIGM CORPORATION

AMENDMENT NO. 2 TO

EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     THIS AMENDMENT NO. 2 (this “Amendment”) to that certain Eighth Amended and Restated Investor
Rights Agreement, dated as of June 13, 2006, as amended December 22, 2006 (the “Rights Agreement”),
by and among Fluidigm Corporation, a California corporation (“Fluidigm California”), and the
Investors and Founders named therein is entered into effective as of October 10, 2007 by and among
Fluidigm Corporation, a Delaware corporation (the “Company”), the undersigned Investors, and the
undersigned Holders, collectively the Holders of at least two-thirds of the outstanding shares of
the Registrable Securities held by Holders (assuming the exercise or conversion of all outstanding
Eligible Securities). Capitalized terms not defined herein have the meanings set forth in the
Rights Agreement.

RECITALS

     WHEREAS, on July 18, 2007, Fluidigm California was merged with and into the Company, with the
Company being the surviving corporation such that the Company succeeded to all of Fluidigm
California’s rights and obligations under the Rights Agreement;

     WHEREAS, it is contemplated that the Company will sell and issue additional shares of the
Company’s Series E Preferred Stock (“Series E Preferred Stock”) pursuant to that certain Series E
Preferred Stock Purchase Agreement, dated as of June 13, 2006, as amended December 22, 2006 and
further amended on the date hereof (the “Purchase Agreement”), by and among the Company and the
Purchasers named therein;

     WHEREAS, in connection with the sale of additional shares of Series E Preferred Stock, the
Company and the Holders desire to amend the Rights Agreement to include the additional shares of
Series E Preferred Stock to be issued pursuant to the Purchase Agreement and make certain other
changes as set forth herein; and

     WHEREAS, pursuant to Section 6.7 of the Rights Agreement, the Rights Agreement may be amended
with the written consent of the Company and Holders of at least two-thirds of the outstanding
shares of the Registrable Securities then held by Holders (assuming the exercise or conversion of
all outstanding Eligible Securities) and the Company and the undersigned Holders have agreed to
amend the Rights Agreement to provide for the foregoing changes.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, all of the parties
hereto mutually agree as follows:

 

 

AGREEMENT

     SECTION 12 Amendment to Recital. The first Recital of the Rights Agreement is hereby
amended and restated in its entirety as follows:

“WHEREAS, the Company and the New Investors have entered into a Series E Preferred Stock
Purchase Agreement of even date herewith, as amended from time to time (such agreement, as
amended from time to time, the “Purchase Agreement”), pursuant to which the Company shall
sell, and the New Investors shall acquire, shares of the Company’s Series E Preferred
Stock;”

     SECTION 13 Amendment to Section 1.14. Subsection (a)(i) of Section 1.14 (Standoff
Agreement) of the Rights Agreement is hereby amended and restated in its entirety as follows:

“(i) such agreement shall not exceed one hundred and eighty (180) days (or such greater
period, not to exceed 17 days, as may be requested by the Company or an underwriter to
accommodate regulatory restrictions on (i) the publication or other distribution of research
reports and (ii) analyst recommendations and opinions, including, but not limited to, the
restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor
provisions or amendments thereto);”

     SECTION 14 Deletion of Section 1.15. The Rights Agreement is hereby amended to delete
Section 1.15 (No Right to Delay Registration) in its entirety.

     SECTION 15 Amendment to Section 2.4. Section 2.4 (Visitation Rights) of the Rights
Agreement is hereby amended and restated in its entirety as follows:

               “2.4 Visitation Rights. One representative chosen collectively by LB I Group
Inc., Lehman Brothers P.A. LLC, Lehman Brothers Partnership Account 2000/2001, L.P. and
Lehman Brothers Offshore Partnership Account 2000/2001, L.P. (collectively, “Lehman”), one
representative chosen collectively by EuclidSR Partners, L.P. and EuclidSR Biotechnology
Partners, L.P. (collectively, “EuclidSR”), one representative chosen by Piper Jaffray
Healthcare Fund III, L.P. (“Piper Jaffray”), one representative chosen by GE Capital Equity
Investments, Inc. (“GE Capital”), one representative chosen collectively by Interwest
Investors VII, L. P. and Interwest Partners VII, L.P. (collectively, “Interwest”), one
representative chosen by AllianceBernstein Venture Fund I, L.P. (“Alliance”), one
representative chosen collectively by Cross Creek Capital, L.P., Cross Creek Capital
Employees’ Fund, L.P. and Wasatch Small Cap Growth (collectively, “Wasatch”), one
representative chosen by BMSIF, and one representative chosen collectively by the holders of
a majority of the Shares purchased under Amendment No. 2 to the Purchase Agreement
(collectively, the “October 2007 Representative”) shall have the right to attend all
meetings of the Board of Directors, including meetings of any committee of the Board and
including the right to participate in any telephonic board meetings, so long as such
Investor or the October 2007 Representative holds at least
750,000 shares of Eligible Securities (as adjusted for stock

-2-

 

splits and combinations and the like). Said representative(s) shall be provided with
notice of the meetings in the same manner at the same time as the members of the Board of
Directors and shall be provided with any materials distributed to the Board of Directors in
connection with board meetings. The foregoing visitation rights may be limited by the Board
of Directors if (i), upon the advice of counsel, the Board of Directors determines that
exclusion is required by third party confidentiality agreements, (ii) the Board is
discussing engaging Investor or an affiliate of Investor as a financial advisor or
underwriter; or (iii) the Board is discussing a material transaction with an entity in which
Investor or a private equity fund affiliated with Investor is a 5% or greater shareholder,
or (iv) the Board determines in good faith upon advice of counsel that limitations are
required to maintain attorney-client privilege.”

     SECTION 16 Amendment to Section 6.7. Section 6.7 (Amendment and Waiver) of the Rights
Agreement is hereby amended and restated in its entirety as follows:

               “6.7 Amendment and Waiver. Any provision of this Agreement may be amended or
waived with the written consent of the Company and the Holders of at least two-thirds of the
outstanding shares of the Registrable Securities then held by Holders (assuming the exercise
or conversion of all outstanding Eligible Securities); provided, however,
(i) that in the event such amendment or waiver adversely affects the rights and/or
obligations of the Founders under this Agreement in a different manner than the other
Holders, such amendment or waiver shall also require written consent of the Founders holding
a majority of the then outstanding Founders Shares, (ii) that in the event such amendment or
waiver adversely affects the rights and/or obligations of Lehman, EuclidSR, Piper Jaffray,
GE Capital, Interwest, Alliance, Wasatch, BMSIF or the October 2007 Representative under
Section 2.4 of this Agreement, such amendment or waiver shall not be effective as to Lehman,
EuclidSR, Piper Jaffray, GE Capital, Interwest, Alliance, Wasatch, BMSIF or the October 2007
Representative, as the case may be, without the written consent of such party, and (iii)
that in the event such amendment or waiver adversely affects the rights and/or obligations
of Warrantholders under this Agreement in a different manner than the other Holders, such
amendment or waiver shall also require the written consent of Warrantholders holding a
majority of the then outstanding Warrant Shares. Notwithstanding the foregoing, any
purchaser of Series E Preferred Stock pursuant to the Purchase Agreement may become a party
to this Agreement by executing and delivering an additional counterpart signature page to
this Agreement and such purchaser shall be deemed a Holder and an Investor hereunder. The
parties agree that Exhibit A shall be updated automatically without any formal
amendment to reflect the addition of any such additional party. Any amendment or waiver
effected in accordance with this paragraph shall be binding upon each Holder, the Founders,
the holder of the Other Shares, Warrantholders and the Company. In addition, the Company
may waive performance of any obligation owing to it, as to some or all of the Holders, or
agree to accept alternatives to such performance, without obtaining the
consent of any other Holder. In the event that an underwriting agreement is entered
into between the Company and any Holder, and such underwriting agreement contains terms

-3-

 

differing from this Agreement, as to any such Holder the terms of such underwriting
agreement shall govern.”

     SECTION 17 Addition of Section 6.15. The Rights Agreement is hereby amended to add
the following Section 6.15 which reads in its entirety as follows:

               “6.15 Reincorporation. Each Investor and Founder acknowledges that the Company
completed a reincorporation into the State of Delaware on July 18, 2007 and each Investor
and Founder hereby consents to the assignment of this Agreement to Fluidigm Corporation, a
Delaware corporation, effective as of July 18, 2007.”

     SECTION 18 Governing Law. This Amendment shall be construed in accordance with, and
governed in all respects by, the laws of the State of California, as applied to agreements entered
into, and to be performed entirely in such state, between residents of such state.

     SECTION 19 Rights Agreement. Wherever necessary, all other terms of the Rights
Agreement are hereby amended to be consistent with the terms of this Amendment. Except as
specifically set forth herein, the Rights Agreement shall remain in full force and effect

     SECTION 20 Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be enforceable against the parties actually executing such
counterparts, and all of which together shall constitute one instrument.

     SECTION 21 Effect of Execution of Amendment by Investor. This Amendment, when
executed and delivered by the Company and an Investor purchasing shares of Series E Preferred
pursuant to the Purchase Agreement as contemplated in the Recitals, shall also constitute and shall
be deemed a counterpart signature page to the Rights Agreement. Consequently, each undersigned
Investor purchasing shares of Series E Preferred acknowledges and agrees that he, she or it is
bound by the terms and conditions contained in the Rights Agreement, as amended by this Amendment.

[Remainder of Page Intentionally Blank]

-4-

 

FOUNDERS

Gajus V. Worthington

Stephen R. Quake

 

 

INVESTORS

Alejandro Berenstein, M.D.

Alfred J. Mandel

Allan Johnson

Allen May, Trustee, Intervivos Trust Dated 5/14/91

AllianceBernstein Venture Fund I, L.P.

Alloy Partners 2002, L.P.

Alloy Ventures 2002, L.P.

Alloy Ventures 2005, L.P.

Analiza, Inc.

Athersys, Inc.

Beveren Company

Biomedical Sciences Investment Fund Pte Ltd

Bradford S. Goodwin and Cathy W. Goodwin As Trustees of the Goodwin Family Trust U/A/D 7/30/97

Bradford W. Baer

Bruce Burrows

Burr & Forman LLP

Burwen Family Trust U/D/T Dated 9/30/88

Charles C. Moore

Charles R. Engles

Clark-Boyd Family Trust

Cross Creek Capital Employees’ Fund, L.P.

Cross Creek Capital, L.P.

David S. Frampton and Gaja Roberta Frampton, as Trustees of the Frampton Family Trust Dtd 4/25/03

Dwayne Hardy

Edward R. LeMoure

Erick Vanderburg

Erik T. Engelson, Trustee of the Elisabeth North Kuechler Engelson Trust UTA dated January 17, 2001

Erik T. Engelson, Trustee of the Erik T. Engelson Trust UTD dated March 29, 2000

EuclidSR Biotechnology Partners, L.P.

EuclidSR Partners, L.P.

Ferguson/Egan Family Trust Dated 6/28/99

Fidelity Contrafund: Fidelity Advisor New Insights Fund

Fidelity Contrafund: Fidelity Contrafund

Finnegan, Henderson, Farabow, Garrett & Dunner, LLP

Frances H. Arnold

Fred St. Goar

Fredrick Stern

 

 

Gary R. Bang

GE Capital Equity Investments, Inc.

General Electric Capital Corporation

George S. Taylor

Glaxo Group Limited

Health Care Administration Company

Heath Lukatch

Henry P. Massey, Jr. TTEE Massey Family Trust U/A DTD 7/06/88

Herbert L. Heyneker

Howard R. Engelson

Howard R. Engelson and Mariam T. Engelson, Ttees Engelson Fam Tr UA DTD 5/26/94

In-Q-Tel Employee Fund, LLC

In-Q-Tel, Inc.

Interwest Investors VII, L.P.

Interwest Partners VII, L.P.

Invus, L.P.

J.F. Shea Co., Inc. As Nominee 1999-114

Jacaranda Partners

James H. Eberwine

James W. Larrick, M.D.

John E. Strobeck, Ph.D., M.D.

John East

John M. Harland

Jonathan S. Hoot and Andrea T. Hoot, Trustees of the Hoot Family Revocable Trust DTD 3/16/99

Joseph M. Jacobson

Kenneth A. Clark

Kiley Revocable Trust

Kristin T. McClanahan Trust

Leerink Swann Co-Investment Fund, LLC

Leerink Swann Holdings, LLC

Lehman Brothers Healthcare Venture Capital L.P.

Lehman Brothers Offshore Partnership Account 2000/2001, L.P.

Lehman Brothers P.A. LLC

Lehman Brothers Partnership Account 2000/2001, L.P.

Leo J. Parry, Jr. and Roberta J. Parry TTEES Parry Family Revocable Trust DTD 01/22/97

Lighthouse Capital Partners V, L.P.

Lilly Bio Ventures, Eli Lilly and Company

Markwell Partners

Matthew Collier

Matthew Frank

Michael H. McKay

 

 

Michael J. Reardon Trust Agreement dated June 5, 1996

Needle & Rosenberg PC

Newman Family Investment Partnership

Oculus Pharmaceuticals, Inc.

Pamela East

Pat and Betsy Collins Revocable Trust

Patrick Tenney

Paul Machle

Pauline van Ysendoorn

Peter B. Dervan

Peter S. Heinecke

Rhett E. Brown

Robert D. McCulloch and Kathleen M. McCulloch, Trustee, or their successor(s)

Robert F. Kornegay, Jr. Revocable Trust u/d/t dated May 27, 2004, Robert F. Kornegay, Jr., Trustee

Security Trust Co., Custodian FBO Frank Ruderman IRA/RO

SightLine Healthcare Fund III, L.P.

Singapore Bio-Innovations Pte Ltd.

SMALLCAP World Fund, Inc.

SmithKline Beecham Corporation

Stanley D. Hayden, and his successor(s), as the Trustee of the Stanley D. Hayden Family Trust

Stephen J. Weiss

Stephen J. Weiss and Ursula G. Weiss, Trustees of the Weiss Family 1996 Trust

Stephen L. Parry

Technogen Liquidating Trust

The Condon Family Trust

The Heckmann Family Trust

The UAB Research Foundation

The V Foundation for Cancer Research

Thomas J. Parry

Thomas L. Barton

Tim L. Traff Trust

Timothy P. Lynch

TTC Fund I, LLC

Variable Insurance Products Fund II: Contrafund Portfolio

Versant Affiliates Fund 1-A, L.P.

Versant Affiliates Fund 1-B, L.P.

Versant Side Fund I, L.P.

Versant Venture Capital I, L.P.

Wasatch Funds, Inc.

William L. Caton III, M.D.

William L. Traff Trust

 

 

William S. Brown and Barbara G. Brown, or their successors, as Trustees of the Brown FRT DTD
3/10/99

WS Investment Company 2000B

WS Investment Company 99B

WS Investment Company, LLC (2001D)

 

 

EXHIBIT
E

FORM
OF LEGAL OPINION

 

June   , 2006

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

Ladies and Gentlemen:

     Reference is made to the Series E Preferred Stock Purchase Agreement dated as of June   , 2006
(the “Agreement”) by and among Fluidigm Corporation, a California corporation (the “Company”), and
the persons and entities listed in Exhibit A to the Agreement (the “Investors”), which provides for
the issuance by the Company to the Investors of shares of Series E Preferred Stock of the Company
(the “Shares”). This opinion is rendered to the Investors in the Initial Closing pursuant to
Section 4.5 of the Agreement, and all terms used herein have the meanings defined for them in the
Agreement unless otherwise defined herein. Reference in this opinion to the Agreement excludes any
schedule or substantive agreement attached as an exhibit to the Agreement, unless otherwise
indicated herein.

     We have acted as counsel for the Company in connection with the negotiation of the Agreement
and the Investor Rights Agreement (collectively, the “Transaction Documents”) and the issuance of
the Shares. As such counsel, we have made such legal and factual examinations and inquiries as we
have deemed advisable or necessary for the purpose of rendering this opinion. In addition, we have
examined originals or copies of such corporate records of the Company, certificates of public
officials and such other documents which we consider necessary or advisable for the purpose of
rendering this opinion. In such examination we have assumed the genuineness of all signatures on
original documents, the authenticity and completeness of all documents submitted to us as
originals, the conformity to original documents of all copies submitted to us and the due execution
and delivery of all documents (except as to due execution and delivery by the Company) where due
execution and delivery are a prerequisite to the effectiveness thereof.

     As used in this opinion, the expression “to our knowledge,” “known to us” or similar language
with reference to matters of fact refers to the current actual knowledge of attorneys of this firm
who have worked on matters for the Company in connection with the Agreement and the transactions
contemplated thereby. Except to the extent expressly set forth herein or as we otherwise believe
to be necessary to our opinion, we have not undertaken any independent investigation to determine
the existence or absence of any fact, and no inference as to our knowledge of the existence or
absence of any fact should be drawn from our representation of the Company or the rendering of the
opinion set forth below.

 

 

AllianceBernstein L.P.

Dated as of June   , 2006

Page 2

     For purposes of this opinion, we are assuming that each Investor has all requisite power and
authority, and has taken any and all necessary corporate or partnership action, to execute and
deliver the Transaction Documents and to effect any and all transactions related to or contemplated
thereby. In addition, we are assuming that the Investors have purchased the Shares for value, in
good faith and without notice of any adverse claims within the meaning of the California Uniform
Commercial Code.

     We are members of the Bar of the State of California and we express no opinion as to any
matter relating to the laws of any jurisdiction other than the federal laws of the United States of
America and the laws of the State of California.

     In rendering the opinion in paragraph 6 below, we note that we have not conducted a docket
search in any jurisdiction with respect to litigation that may be pending against the Company or
any of its officers or directors. We further note the disclosure under Section 2.10 of the
Schedule of Exceptions to the Agreement. Please be advised that we have not represented the
Company with respect to the matters disclosed in Section 2.10 of the Schedule of Exceptions and
express no opinion with respect to any matter discussed therein.

     The opinions hereinafter expressed are subject to the following additional qualifications:

          (a) We express no opinion as to the effect of applicable bankruptcy, insolvency,
reorganization, moratorium or other similar federal or state laws affecting the rights of
creditors.

          (b) We express no opinion as to the effect or availability of rules of law governing specific
performance, injunctive relief or other equitable remedies (regardless of whether any such remedy
is considered in a proceeding at law or in equity).

          (c) This opinion is qualified by the limitations imposed by statutes and principles of law and
equity that provide that certain covenants and provisions of agreements are unenforceable where
such covenants or provisions are unconscionable or contrary to public policy or where enforcement
of such covenants or provisions under the circumstances would violate the enforcing party’s implied
covenant of good faith and fair dealing.

          (d) Our opinion in the first sentence of paragraph 1 below is based solely on the certificates
of public officials and filing officers as to the corporate and tax good standing of the Company in
the State of California.

          (e) Our opinions set forth in paragraph 3 below relating to the outstanding capital stock of the
Company and outstanding options, warrants or similar rights to acquire shares of the Company’s
capital stock are based solely on (i) our review of a report from eProsper, Inc., the

 

 

AllianceBernstein L.P.

Dated as of June   , 2006

Page 3

Company’s transfer agent, detailing the holders of securities of the Company and the number
and type of securities held by such holders (the “Transfer Agent Report”) and (ii) a certificate
delivered to us by the Company regarding factual matters underlying the opinions set forth herein.
Our opinion in paragraph 3 below that the issued and outstanding shares of Common Stock and
Preferred Stock of the Company are fully paid and non-assessable is based solely on a certificate
of an officer of the Company that the Company received, in payment for such shares, the full
consideration required by the resolutions of the Board of Directors of the Company authorizing the
issuance of such shares.

          (f) For purposes of our opinions in paragraph 2 and paragraph 4 below, we have assumed that
the Transfer Agent Report is accurate and complete in all respects.

          (g) We express no opinion as to compliance with the anti-fraud provisions of applicable
securities laws.

          (h) We express no opinion as to the enforceability of any indemnification or contribution
provision, including, without limitation, the indemnification and contribution provisions of the
Investor Rights Agreement and the indemnification provision in the Agreement, to the extent the
provisions thereof may be subject to limitations of public policy and the effect of applicable
statutes and judicial decisions.

          (i) We express no opinion as to the enforceability of choice of law provisions, waivers of
jury trial or provisions relating to venue or jurisdiction.

          (j) We have made no inquiry into, and express no opinion with respect to, any federal or state
statute, rule, or regulation relating to any tax, antitrust, land use, safety, environmental,
hazardous material, patent, copyright, trademark or trade name matter, as to the statutes,
regulations, treaties or common laws of any other nation (other than the United States), state or
jurisdiction (other than the State of California), or the effect on the transactions contemplated
in the Transaction Documents of noncompliance under any such statues, regulations, treaties, or
common laws. Without limiting the foregoing, we express no opinion as to the effect of, or
compliance with, the Investment Advisors Act of 1940, as amended, or the Employee Retirement Income
Security Act of 1974, as amended. We further disclaim any opinion as to any statute, rule,
regulation, ordinance, order, or other promulgation of any regional or local governmental body or
as to any related judicial or administrative opinion.

          (k) Our opinions relate solely to the express written provisions of the Transaction Documents,
and we express no opinion as to any other oral or written agreements or understandings between the
Company or any of the Investors.

 

 

AllianceBernstein L.P.

Dated as of June   , 2006

Page 4

     Based upon and subject to the foregoing, and except as set forth in the Schedule of Exceptions
to the Agreement, we are of the opinion that:

     1. The Company is a corporation duly incorporated and validly existing under, and by virtue
of, the laws of the State of California and is in good standing under such laws. The Company has
requisite corporate power to own and operate its properties and assets, and to carry on its
business as presently conducted.

     2. The Company has all requisite legal and corporate power to execute and deliver the
Transaction Documents, to sell and issue the Shares under the Agreement, to issue the Common Stock
issuable upon conversion of the Shares and to carry out and perform its obligations under the terms
of the Transaction Documents.

     3. The authorized capital stock of the Company consists of 77,857,144 shares of Common Stock,
9,274,356 shares of which are issued and outstanding, and 51,687,948 shares of Preferred Stock,
2,727,273 of which are designated Series A Preferred Stock, 2,727,273 shares of which are issued
and outstanding, 6,460,675 of which are designated Series B Preferred Stock, 6,460,675 shares of
which are issued and outstanding, 17,000,000 of which are designated Series C Preferred Stock,
16,364,832 shares of which are issued and outstanding, 15,500,000 shares of Series D Preferred
Stock, 11,714,048 of which are issued and outstanding, and 10,000,000 shares of Series E Preferred
Stock, none of which has been issued or outstanding immediately prior to the Initial Closing. All
such issued and outstanding shares of Common Stock and Preferred Stock have been duly authorized
and validly issued and are fully paid and nonassessable.  The Company has reserved:
(i) 5,000,000 shares of Series E Preferred Stock for issuance pursuant to the Agreement and
5,000,000 shares of Common Stock for issuance upon conversion of such shares of Series E Preferred
Stock; (ii) 11,714,048 shares of Common Stock for issuance upon conversion of the Series D
Preferred Stock, (iii) 916,335 shares of Series D Preferred Stock for issuance upon exercise of
outstanding warrants and 916,335 shares of Common Stock for issuance upon conversion of such Series
D Preferred Stock; (iv) 16,364,832 shares of Common Stock for issuance upon conversion of the
Series C Preferred Stock; (v) 294,868 shares of Series C Preferred Stock for issuance upon exercise
of outstanding warrants and 294,868 shares of Common Stock for issuance upon conversion of such
Series C Preferred Stock; (vi) 6,460,675 shares of Common Stock for issuance upon
conversion of the Series B Preferred Stock; (vii) 2,727,273 shares of Common Stock for
issuance upon conversion of the Series A Preferred Stock; and (viii) an aggregate of 10,800,000
shares of Common Stock for issuance to employees and consultants of the Company pursuant to the
Company’s 1999 Stock Option Plan (the “Option Plan), pursuant to which options to purchase
5,597,763 shares are granted and outstanding and 1,554,643 shares are available for future grant.
The Common Stock issuable upon conversion of the Shares has been duly authorized and duly and
validly reserved, and when issued in accordance with the Company’s Articles of Incorporation, will

 

 

AllianceBernstein L.P.

Dated as of June   , 2006

Page 5

be validly issued, fully paid and nonassessable. The Shares issued under the
Agreement are duly authorized, validly issued, fully paid and nonassessable and are free of any
liens, encumbrances and preemptive or similar rights contained in the Articles of Incorporation or
Bylaws of the Company, or, to our knowledge, in any written agreement to which the Company is a
party, except as specifically provided in the Agreement (including its Exhibits) and except for
liens or encumbrances created by or imposed upon the Investors; provided, however, that
the Shares (and the Common Stock issuable upon conversion thereof) are subject to restrictions on
transfer under applicable state and federal securities laws. To our knowledge, except for rights
described above, in the Transaction Documents (including the Schedule of Exceptions to the
Agreement) or in the Articles of Incorporation of the Company, as of the date of the Agreement,
there are no other options, warrants, conversion privileges or other rights in writing presently
outstanding to purchase or otherwise acquire any authorized but unissued shares of capital stock or
other securities of the Company, or any other written agreements of the Company to issue any such
securities or rights; provided, however, we note the Company’s intent to comply
with Section 3 of the Investor Rights Agreement following the Initial Closing. 

     4. All corporate action on the part of the Company, its directors and shareholders necessary
for the authorization, execution and delivery of the Transaction Documents by the Company, the
authorization, sale, issuance and delivery of the Shares (and the Common Stock issuable upon
conversion thereof) and the performance by the Company of its obligations under the Transaction
Documents (other than those registration obligations contained in Section 1 of the Investor Rights
Agreement) has been taken. The Transaction Documents have been duly and validly executed and
delivered by the Company and constitute a valid and binding obligation of the Company, enforceable
against the Company in accordance with their terms.

     5. The execution and delivery by the Company of the Transaction Documents, the performance by
the Company of its obligations under the Transaction Documents, and the issuance of the Shares (and
the Common Stock issuable upon conversion thereof) do not violate any provision of the Articles of
Incorporation or Bylaws, or any provision of any applicable federal or state law, rule or
regulation known to us to be customarily applicable to transactions of this nature. The execution
and delivery by the Company of the Transaction Documents, the performance by the Company of its
obligations under the Transaction Documents, and the issuance of the Shares (and the Common Stock
issuable upon conversion thereof) do not violate any judgment or decree known to us that is binding
upon the Company.

     6. Except as identified in the Agreement (including the Schedule of Exceptions), to our
knowledge, there are no actions, suits, proceedings or investigations pending against the Company
or its properties before any court or governmental agency nor, to our knowledge, has the Company
received any written threat thereof.

 

 

AllianceBernstein L.P.

Dated as of June   , 2006

Page 6

     7. No consent, approval or authorization of or designation, declaration or filing with any
governmental authority on the part of the Company is required in connection with the valid
execution and delivery of the Transaction Documents, or the offer, sale or issuance of the Shares
(and the Common Stock issuable upon conversion thereof) or the consummation by the Company of any
other transaction contemplated by the Transaction Documents, except (a) the filing of the Amended
and Restated Articles of Incorporation in the Office of the Secretary of State of the State of
California, and (b) subject to the accuracy of the representations and warranties of the Investors
in Section 3 of the Agreement, (i) the filing after the Closing of a Form D pursuant to Regulation
D, promulgated by the United States Securities and Exchange Commission (the “SEC”) under the
Securities Act of 1933, as amended (the “Securities Act”), with the SEC, and (ii) the post-Closing
qualification (or the taking of such action post-Closing as may be necessary to secure an exemption
from qualification) under applicable state securities laws of the offer and sale of the Shares (and
the Common Stock issuable upon conversion thereof). The filing referred to in clause (a) above has
been accomplished and is effective. Our opinion herein is otherwise subject to the timely and
proper completion of all filings and other actions contemplated herein where such filings and
actions are to be undertaken on or after the date hereof.

     8. Subject to the accuracy of the Investors’ representations in Section 3 of the Agreement,
the offer, sale and issuance of the Shares (and the Common Stock issuable upon
conversion thereof) in conformity with the terms of the Agreement constitute transactions
exempt from the registration requirements of Section 5 of the Securities Act.

     This opinion is furnished to the Investors solely for their benefit in connection with the
purchase of the Shares, and may not be relied upon by any other person or for any other purpose
without our prior written consent. We assume no obligation to inform you of any facts,
circumstances, events or changes in the law that may arise or be brought to our attention after the
date of this opinion that may alter, affect or modify the opinions expressed herein.

	 	 	 	 	 
	 	Very truly yours,exv10w1

Exhibit 10.1

EXECUTION VERSION

AGREEMENT AND PLAN OF MERGER

by and among

MCAFEE, INC.,

SEABISCUIT ACQUISITION CORPORATION

and

SECURE COMPUTING CORPORATION

Dated as of September 21, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1 Certain Defined Terms
	 	 	2	 
	1.2 Additional Defined Terms
	 	 	10	 
	 
	 	 	 	 
	ARTICLE II THE MERGER
	 	 	11	 
	 
	 	 	 	 
	2.1 The Merger
	 	 	11	 
	2.2 Effective Time; Closing
	 	 	11	 
	2.3 Effect of the Merger
	 	 	12	 
	2.4 Certificate of Incorporation and Bylaws
	 	 	12	 
	2.5 Directors and Officers
	 	 	12	 
	2.6 Effect on Capital Stock
	 	 	12	 
	2.7 Dissenting Shares
	 	 	14	 
	2.8 Surrender of Certificates
	 	 	14	 
	2.9 No Further Ownership Rights in any Company Securities
	 	 	16	 
	2.10 Lost, Stolen or Destroyed Certificates
	 	 	16	 
	2.11 Further Action
	 	 	16	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	16	 
	 
	 	 	 	 
	3.1 Organization; Standing and Power; Charter Documents; Subsidiaries
	 	 	17	 
	3.2 Capital Structure
	 	 	17	 
	3.3 Authority; No Conflict; Necessary Consents
	 	 	19	 
	3.4 SEC Filings; Financial Statements; Internal Controls
	 	 	21	 
	3.5 Absence of Certain Changes or Events
	 	 	23	 
	3.6 Taxes
	 	 	25	 
	3.7 Title to Properties
	 	 	28	 
	3.8 Intellectual Property
	 	 	29	 
	3.9 Restrictions on Business Activities
	 	 	32	 
	3.10 Governmental Authorizations
	 	 	32	 
	3.11 Litigation
	 	 	33	 
	3.12 Compliance with Laws
	 	 	33	 
	3.13 Environmental Matters
	 	 	35	 
	3.14 Brokers’ and Finders’ Fees; Fees and Expenses
	 	 	36	 
	3.15 Transactions with Affiliates
	 	 	36	 
	3.16 Employee Benefit Plans and Compensation
	 	 	36	 
	3.17 Contracts
	 	 	40	 
	3.18 Insurance
	 	 	43	 
	3.19 Information Supplied
	 	 	44	 
	3.20 Fairness Opinion
	 	 	44	 
	3.21 Corporate Documents
	 	 	44	 
	3.22 Customers and Suppliers
	 	 	44	 
	3.23 Privacy
	 	 	45	 
	3.24 Takeover Statutes and Rights Plans
	 	 	45	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
	 	 	45	 
	 
	 	 	 	 
	4.1 Organization
	 	 	45	 
	4.2 Authority; No Conflict; Necessary Consents
	 	 	45	 
	4.3 Capital Resources
	 	 	46	 
	4.4 Stock Ownership
	 	 	46	 
	4.5 No Prior Merger Sub Operations
	 	 	46	 
	4.6 Information Supplied
	 	 	46	 
	 
	 	 	 	 
	ARTICLE V CONDUCT BY THE COMPANY PRIOR TO THE EFFECTIVE TIME
	 	 	47	 
	 
	 	 	 	 
	5.1 Conduct of Business by the Company
	 	 	47	 
	5.2 Procedures for Requesting Parent Consent
	 	 	50	 
	 
	 	 	 	 
	ARTICLE VI ADDITIONAL AGREEMENTS
	 	 	50	 
	 
	 	 	 	 
	6.1 Proxy Statement and Other Filings
	 	 	50	 
	6.2 Meeting of Company Stockholders; Board Recommendation
	 	 	51	 
	6.3 Alternative Transaction Proposals
	 	 	52	 
	6.4 Confidentiality; Access to Information
	 	 	55	 
	6.5 Public Disclosure
	 	 	56	 
	6.6 Regulatory Filings; Reasonable Efforts
	 	 	56	 
	6.7 Notification of Certain Matters
	 	 	58	 
	6.8 Third-Party Consents
	 	 	58	 
	6.9 Employee Matters
	 	 	58	 
	6.10 Indemnification
	 	 	60	 
	6.11 Section 16 Matters
	 	 	61	 
	6.12 No Modification of Representations, Warranties, Covenants or Agreements
	 	 	61	 
	6.13 State Takeover Statutes
	 	 	61	 
	6.14 Section 409A Compliance
	 	 	61	 
	6.15 Notice to Holders of Company Series A Preferred Stock
	 	 	61	 
	 
	 	 	 	 
	ARTICLE VII CONDITIONS TO THE MERGER
	 	 	61	 
	 
	 	 	 	 
	7.1 Conditions to the Obligations of Each Party to Effect the Merger
	 	 	61	 
	7.2 Additional Conditions to the Obligations of Parent and Merger Sub
	 	 	62	 
	7.3 Additional Conditions to the Obligations of the Company
	 	 	63	 
	 
	 	 	 	 
	ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER
	 	 	64	 
	 
	 	 	 	 
	8.1 Termination
	 	 	64	 
	8.2 Notice of Termination; Effect of Termination
	 	 	65	 
	8.3 Fees
	 	 	66	 
	8.4 Amendment
	 	 	66	 
	8.5 Extension; Waiver
	 	 	67	 
	 
	 	 	 	 
	ARTICLE IX GENERAL PROVISIONS
	 	 	67	 
	 
	 	 	 	 
	9.1 Non-Survival of Representations and Warranties
	 	 	67	 
	9.2 Notices
	 	 	67	 
	9.3 Interpretation; Rule of Construction
	 	 	68	 
	9.4 Counterparts
	 	 	69	 
	9.5 Entire Agreement; Third-Party Beneficiaries
	 	 	69	 

-ii-

 

	 	 	 	 	 
	 	 	Page	 
	9.6 Severability
	 	 	69	 
	9.7 Other Remedies
	 	 	69	 
	9.8 Governing Law; Consent to Jurisdiction
	 	 	69	 
	9.9 Assignment
	 	 	70	 
	9.10 Waiver of Jury Trial
	 	 	70	 

-iii-

 

INDEX OF EXHIBITS AND SCHEDULES

	 	 	 
	Exhibits
	 	 
	 
	 	 
	Exhibit A-1

	 	Form of Voting Agreement for Executive Officers and Directors
	Exhibit A-2

	 	Form of Voting Agreement for Warburg Pincus and its Director
	Exhibit B-1

	 	Form of Key Employee Non-Competition Agreements
	Exhibit B-2

	 	Form of Key Employee Offer Letters
	Exhibit C

	 	Form of Warrant Termination Agreement
	 
	 	 
	Schedules
	 	 
	 
	 	 
	Schedule 1

	 	Signatories to Voting Agreements
	Schedule 2

	 	Key Employees
	Schedule 7.1(c)

	 	Required Foreign Antitrust Approvals

-iv-

 

AGREEMENT AND PLAN OF MERGER

     This AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made and entered into as of September
21, 2008, by and among McAfee, Inc., a Delaware corporation (“Parent”), Seabiscuit Acquisition
Corporation, a Delaware corporation and direct wholly owned subsidiary of Parent (“Merger Sub”),
and Secure Computing Corporation, a Delaware corporation (the “Company”).

RECITALS

     A. The respective Boards of Directors of Parent, Merger Sub and the Company have deemed it
advisable and in the best interests of their respective corporations and stockholders that Parent
and the Company consummate the business combination and other transactions provided for herein.

     B. The respective Boards of Directors of Merger Sub and the Company have approved, in
accordance with the Delaware General Corporation Law (“Delaware Law”), this Agreement and the
transactions contemplated hereby, including the Merger.

     C. Contemporaneously with the execution and delivery of this Agreement by the parties hereto,
and as a condition and material inducement to Parent and Merger Sub to enter into this Agreement,
each of the Persons listed on Schedule 1 are entering into a Voting Agreement and an
irrevocable proxy in substantially the form attached hereto as Exhibits A-1 and A-2
(the “Voting Agreements”) pursuant to which, among other things, such stockholder agrees to vote
all shares of the Company’s capital stock owned by it, him or her in favor of the adoption of this
Agreement and the other transactions contemplated hereby.

     D. Contemporaneously with the execution and delivery of this Agreement by the parties hereto,
and as a condition and material inducement to Parent and Merger Sub to enter into this Agreement,
the Persons listed on Schedule 2 (the “Key Employees”) are entering into or executing, as
applicable (i) a non-competition and non-solicitation agreement with Parent, each in the form
attached hereto as Exhibit B-1 (collectively, the “Key Employee Non-Competition
Agreements”), and (ii) an offer letter, each in the form attached hereto as Exhibit B-2
(collectively, the “Key Employee Offer Letters”), each to be effective as of the Effective Time.

     E. The Board of Directors of the Company has resolved to recommend to its stockholders the
adoption of this Agreement.

     F. Parent, as the sole stockholder of Merger Sub, has approved and adopted this Agreement and
approved the Merger.

     G. Parent, Merger Sub and the Company desire to make certain representations, warranties and
agreements in connection with the Merger and also to prescribe certain conditions to the Merger.

     NOW, THEREFORE, in consideration of the covenants, promises and representations set forth
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

-1-

 

ARTICLE I

DEFINITIONS

     1.1 Certain Defined Terms.  For all purposes of and under this Agreement, the following
capitalized terms shall have the following respective meanings:

          (a) “Acquisition” shall mean, for the purposes of Section 8.3(b) only, with respect to
the Company, any of the following transactions (other than the transactions contemplated by this
Agreement): (i) any purchase or acquisition by any Person or “group” (as defined under
Section 13(d) of the Exchange Act and the rules and regulations thereunder) of a fifty percent
(50%) or more interest in the total outstanding voting securities of the Company or any of its
Subsidiaries, or any tender offer or exchange offer that if consummated would result in any Person
or “group” beneficially owning fifty percent (50%) or more of the total outstanding voting
securities of the Company or any of its Subsidiaries; (ii) any merger, consolidation, business
combination, recapitalization, liquidation, dissolution or similar transaction involving the
Company pursuant to which the equity interests held in the Company and retained following such
transaction or issued to or otherwise received in such transaction by the stockholders of the
Company immediately preceding such transaction constitute less than fifty percent (50%) of the
aggregate equity interests in the surviving or resulting entity of such transaction or any direct
or indirect parent thereof; or (iii) any sale, lease, exchange, transfer, license (other than in
the ordinary course of business consistent with past practices) or other disposition (including by
way of joint venture) by the Company of assets (including capital stock or other ownership
interests in Subsidiaries of the Company) representing fifty percent (50%) or more of the aggregate
fair market value of the consolidated assets of the Company and its Subsidiaries, taken as a whole,
immediately prior to such sale.

          (b) “Alternative Transaction Proposal” shall mean, with respect to the Company, any offer,
expression of interest or proposal (whether binding or non-binding), or any public announcement of
any intention to make any such offer, expression of interest or proposal, whether made to the
Company or its stockholders, relating to any transaction or series of related transactions
involving: (i) any purchase or acquisition by any Person or “group” (as defined under Section 13(d)
of the Exchange Act and the rules and regulations thereunder) of more than a fifteen percent (15%)
interest in the total outstanding voting securities of the Company or any of its Subsidiaries, or
any tender offer or exchange offer that if consummated would result in any Person or “group”
beneficially owning fifteen percent (15%) or more of the total outstanding voting securities of the
Company or any of its Subsidiaries; (ii) any merger, consolidation, business combination or similar
transaction involving the Company or any of its Subsidiaries; (iii) any sale, lease, exchange,
transfer, license (other than in the ordinary course of business consistent with past practices) or
other disposition (including by way of joint venture) of assets (including capital stock or other
ownership interests in Subsidiaries of the Company) representing fifteen percent (15%) or more of
the aggregate fair market value of the consolidated assets of the Company and its Subsidiaries,
taken as a whole; (iv) any liquidation, dissolution, reorganization or recapitalization of the
Company; or (v) the declaration or payment of any extraordinary dividend, whether of cash or other
property, by the Company; provided, however, for the sake of clarity, the
transactions among Parent, Merger Sub and the Company contemplated by this Agreement shall not be
deemed an Alternative Transaction Proposal.

          (c) “Anti-Corruption and Anti-Bribery Laws” shall mean the Foreign Corrupt Practices Act of
1977, as amended, any rules or regulations thereunder, or any other applicable United States or
non-U.S. anti-corruption or anti-bribery laws or regulations.

          (d) “Base Amount” shall mean one hundred dollars ($100).

          (e) “Bid” shall mean any bid, quotation or proposal submitted to any Governmental Entity in
connection with obtaining any current Contract between the Company, on the one hand, and any

-2-

 

Governmental Entity, on the other hand, and any outstanding bid, quotation or proposal by the
Company that if accepted or awarded would reasonably be expected to lead to a Contract between the
Company, on the one hand, and any Governmental Entity or any prime contractor or upper-tier
subcontractor for any Governmental Entity, on the other hand.

          (f) “Business Day” shall mean each day that is not a Saturday, Sunday or other day on which
Parent is closed for business or banking institutions located in San Francisco, California or
Minneapolis, Minnesota are authorized or obligated by law or executive order to close.

          (g) “Change of Recommendation” shall mean the withholding, withdrawal or amendment,
qualification or modification (in a manner adverse to Parent), by the Company’s Board or Directors
(or any committee thereof) of its recommendation in favor of adoption of this Agreement, and, in
the case of a tender or exchange offer made by a third party directly to the Company’s
stockholders, a failure to recommend that Company’s stockholders reject such tender or exchange
offer.

          (h) “COBRA” shall mean Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended.

          (i) “Common Stock Merger Consideration” shall mean an amount of cash equal to $5.75 per share,
without interest.

          (j) “Company Common Stock” shall mean the common stock, par value $0.01 per share, of the
Company.

          (k) “Company Employee Plan” shall mean any plan, program, policy, practice, contract,
agreement or other arrangement, whether written, unwritten or otherwise, providing for
compensation, severance benefits, termination pay, change of control pay, bonus pay, deferred
compensation, performance awards, stock or stock-related awards, phantom stock, commission pay,
vacation or paid time off, profit sharing, welfare benefits, retirement benefits, fringe benefits
or other employee benefits or remuneration of any kind, whether written, unwritten or otherwise,
funded or unfunded, including each “employee benefit plan,” within the meaning of Section 3(3) of
ERISA which is or has been maintained, contributed to, or required to be contributed to, by the
Company or any ERISA Affiliate for the benefit of any Employee, or with respect to which the
Company or any ERISA Affiliate has or may have any liability or obligation and any International
Employee Plan.

          (l) “Company Government Contract” shall mean any Contract between the Company, on the one
hand, and any Governmental Entity, on the other hand.

          (m) “Company Government Subcontract” shall mean any Contract between the Company, on the one
hand, and any prime contractor or upper-tier subcontractor, on the other hand, relating to a
Contract between such Person and any Governmental Entity.

          (n) “Company Financial Advisor” shall mean Citigroup Global Markets Inc.

          (o) “Company Intellectual Property” shall mean any and all Intellectual Property and
Intellectual Property Rights that are owned by, or claimed to be owned by, or exclusively licensed
to, the Company or its Subsidiaries.

-3-

 

          (p) “Company Options” shall mean all outstanding options to purchase Company Common Stock.

          (q) “Company Preferred Stock” shall mean the preferred stock, par value $0.01 per share, of
the Company.

          (r) “Company Products” shall mean all products, technologies and services developed (including
products, technologies and services under development), owned, made, provided, distributed,
imported, sold or licensed by or on behalf of the Company and any of its Subsidiaries.

          (s) “Company Registered Intellectual Property” shall mean all of the Registered Intellectual
Property owned by, or filed in the name of, the Company or any of its Subsidiaries.

          (t) “Company RSUs” shall mean restricted stock units of the Company issued from the Company
Stock Plans, whereby each restricted stock unit represents a bookkeeping entry representing the
equivalent of one (1) share of Company Common Stock.

          (u) “Company Series A Preferred Stock” shall mean the Series A convertible preferred stock,
par value $0.01 per share, of the Company.

          (v) “Company Stock” shall mean the Company Preferred Stock, the Company Series A Preferred
Stock and the Company Common Stock.

          (w) “Company Stock Plans” shall mean all stock option plans or other equity-related plans of
the Company, including: (i) the Company’s 2002 Stock Incentive Plan, (ii) the Company’s Amended and
Restated 1995 Omnibus Stock Option Plan, (iii) the Company’s 2000 Stock Option Plan, (iv) the N2H2
1997 Stock Option Plan, the (v) N2H2 1999 Stock Option Plan, (vi) the N2H2 1999 Non-Employee
Director Plan, (vii) the N2H2 1999/2000 Transition Plan, (viii) the N2H2 2000 Stock Option Plan,
(ix) the Howard Philip Welt Plan, (x) the CyberGuard 1994 Stock Option Plan, and (xi) the
CyberGuard 1998 Stock Option Plan.

          (x) “Company Unvested Common Stock” shall mean any shares of Company Common Stock outstanding
immediately prior to the Effective Time that are unvested or are subject to a repurchase option,
risk of forfeiture or other condition under any applicable restricted stock purchase agreement or
other agreement with the Company.

          (y) “Company Warrants” shall mean all warrants to purchase Company Common Stock issued by the
Company.

          (z) “Contract” shall mean any written or oral agreement, contract, subcontract, settlement
agreement, lease, binding understanding, instrument, note, option, warranty, purchase order,
license, sublicense, insurance policy, benefit plan or legally binding commitment or undertaking of
any nature, as in effect as of the date hereof or as may hereinafter be in effect.

          (aa) “DOJ” shall mean the United States Department of Justice.

          (bb) “DOL” shall mean the United States Department of Labor.

-4-

 

          (cc) “Employee” shall mean any current or former employee, consultant, adviser, independent
contractor or director of the Company or any ERISA Affiliate.

          (dd) “Employee Agreement” shall mean each management, employment, severance, separation,
change of control, settlement, bonus, consulting, contractor, relocation, repatriation,
expatriation, loan, visa, work permit or other agreement or Contract (including, any offer letter
which provides for any term of employment other than employment at will or any agreement providing
for acceleration of Company Options or Company Unvested Common Stock, or similar equity awards, or
any other agreement providing for compensation or benefits) between the Company or any ERISA
Affiliate and any Employee, whether written or unwritten or otherwise pursuant to which the
Company or ERISA Affiliate has or may have any current or future liability or obligation
(contingent or otherwise).

          (ee) “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

          (ff) “ERISA Affiliate” shall mean any Subsidiary of the Company and any other Person under
common control with the Company or any of its Subsidiaries, or that, together with the Company or
any Subsidiary of the Company, could be deemed a “single employer” within the meaning of Section
4001(b)(1) of ERISA or Section 414(b), (c), (m) or (o) of the Code, and the regulations issued
thereunder.

          (gg) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          (hh) “Exchange Ratio” shall mean the quotient obtained by dividing (i) the Common Stock Merger
Consideration, by (ii) the Parent Stock Price.

          (ii) “Export and Import Approvals” shall mean all export licenses, license exceptions,
consents, notices, waivers, approvals, orders, authorizations, registrations, declarations and
filings, from or with any Governmental Entity, that are required for compliance with Export and
Import Control Laws.

          (jj) “Export and Import Control Laws” shall mean any U.S. law, regulation, or order or
applicable non-U.S. law, regulation or order to the extent permitted under U.S. law governing
(i) imports, exports, re-exports, or transfers of products, services, software, or technologies
from or to the United States or another country; (ii) any release of technology or software in any
foreign country or to any foreign person (anyone other than a citizen or lawful permanent resident
of the United States, or a protected individual as defined by 8 U.S.C. § 1324b(a)(3)) located in
the United States or abroad; (iii) economic sanctions or embargoes; or (iv) compliance with
unsanctioned foreign boycotts.

          (kk) “FTC” shall mean the United States Federal Trade Commission.

          (ll) “Governmental Entity” shall mean any supranational, national, state, municipal, local or
foreign government, any instrumentality, subdivision, court, works council or other foreign labor
entity, administrative agency or commission or other governmental authority or instrumentality, or
any quasi-
governmental or private body exercising any regulatory, taxing, importing or other
governmental or quasi-governmental authority.

          (mm) “HIPAA” shall mean the Health Insurance Portability and Accountability Act of 1996, as
amended.

-5-

 

          (nn) “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended.

          (oo) “Intellectual Property” shall mean any or all of the following: (i) works of authorship
including computer programs, source code, and executable code, whether embodied in software,
firmware or otherwise, architecture, documentation, designs, files, records, and data,
(ii) inventions (whether or not patentable), discoveries, improvements, and technology,
(iii) proprietary and confidential information, trade secrets and know how, (iv) databases, data
compilations and collections and technical data, (v) logos, trade names, trade dress, trademarks
and service marks, (vi) domain names, web addresses and sites, (vii) tools, methods and processes,
(viii) devices, prototypes, schematics, breadboards, netlists, maskworks, test methodologies,
verilog files, emulation and simulation reports, test vectors and hardware development tools, and
(ix) any and all instantiations of the foregoing in any form and embodied in any media.

          (pp) “Intellectual Property Rights” shall mean worldwide common law and statutory rights
associated with (i) patents, patent applications and inventors’ certificates, (ii) copyrights,
copyright registrations and copyright applications, “moral” rights and mask work rights,
(iii) Trade Secrets, (iv) other proprietary rights relating to intangible intellectual property,
(v) trademarks, trade names and service marks, (vi) divisions, continuations, renewals, reissuances
and extensions of the foregoing (as applicable) and (vii) analogous rights to those set forth
above, including the right to enforce and recover remedies for any of the foregoing.

          (qq) “International Employee Plan” shall mean each Company Employee Plan or Employee Agreement
that has been adopted, contributed to, required to be contributed to, or maintained by the Company,
any of its Subsidiaries or any ERISA Affiliate, whether formally or informally, or with respect to
which the Company or any ERISA Affiliate will or may have any liability, for the benefit of
Employees who perform services outside the United States.

          (rr) “Intervening Event” shall mean a material event (other than (i) an Alternative
Transaction Proposal or a Superior Proposal, and (ii) events to the extent relating to developments
in the Company’s progress toward goals set forth in its business plan) arising after the date of
this Agreement, that was neither known to the Board of Directors of the Company as of the date
hereof nor reasonably foreseeable by the Board of Directors of the Company as of or prior to the
date hereof, which becomes known to the Board of Directors of the Company prior to the receipt of
the Company Stockholder Approval.

          (ss) “IRS” shall mean the United States Internal Revenue Service.

          (tt) “knowledge” shall mean, with respect to a party hereto, with respect to any fact,
circumstance, event or other matter in question, (i) the actual knowledge of any of the directors
of such party, and (ii) the actual knowledge of any of the executive officers of such party after
reasonable inquiry of the
senior employees of such party and its Subsidiaries who have primary administrative or
operational responsibility for such matter in question.

          (uu) “Legal Requirement” shall mean any federal, state, local, municipal, foreign or other
law, statute, constitution, principle of common law, resolution, ordinance, code, order, decree,
directive, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated,
implemented or otherwise put into effect by or under the authority of any Governmental Entity.

-6-

 

          (vv) “Liabilities” shall mean the debts, liabilities and other obligations of a Person,
whether accrued or fixed, absolute or contingent, matured or unmatured, determined or determinable,
known or unknown, including those arising under any Legal Requirement, action or order by any
Governmental Entity, and those arising under any Contract.

          (ww) “Lien” shall mean any mortgage, deed of trust, lien, pledge, charge, security interest,
title retention device, collateral assignment, restriction or other encumbrance of any kind in
respect of an asset, tangible or intangible (including any restriction on the voting of any
security, any restriction on the transfer of any security or other asset, any restriction on the
receipt of any income derived from any asset, any restriction on the use of any asset and any
restriction on the possession, exercise or transfer of any other attribute of ownership of any
asset).

          (xx) “Liquidation Amount” shall mean the sum of (i) the Base Amount, plus (ii) an amount of
interest on such Base Amount accreting daily at the annual rate of five percent (5.0%), compounded
semi-annually, computed on the basis of a three hundred sixty (360) day year of twelve (12) thirty
(30) day months from January 12, 2006 to the Closing Date, plus (iii) an amount equal to any
accrued but unpaid dividends on a share of Company Series A Preferred Stock as of the Closing Date.

          (yy) “made available” shall mean that the Company has posted such materials, on or before
11:59 p.m. Pacific time on September 21, 2008, to the virtual data room managed by the Company
hosted at the following IP address:

https://vault.netvoyage.com/neWeb2/cabinetHome.aspx?targetCabinet=NG-UPV0V4MI

          (zz) “Material Adverse Effect” shall mean, when used in connection with an entity, any change,
event, circumstance, condition or effect (any such item, an “Effect”), individually or when taken
together with all other Effects, (i) that is or is reasonably likely to be materially adverse to
the condition (financial or otherwise), business, assets (including intangible assets),
liabilities, operations or results of operations of such entity and its Subsidiaries, taken as a
whole, or (ii) that is reasonably likely to materially impede the authority or ability of such
entity to consummate the transactions contemplated by this Agreement in accordance with the terms
hereof and applicable Legal Requirements, except in each case to the extent that any such Effect
directly results from any of the following: (a) changes in general economic conditions or changes
affecting the industry generally in which such entity operates, or acts of war (including
escalation in conflicts involving the United States), acts of God (including natural disasters) or
terrorism (provided that such changes or acts do not affect such entity disproportionately as
compared to other companies operating in the same industries or geographies as such entity);
(b) changes in the trading volume or trading prices of such entity’s capital stock, or any failure
to meet published analyst estimates, in each case, in and of themselves (provided that such
exclusion shall not apply to any underlying Effect that may have caused such change in trading
prices or volumes or failure to meet estimates); (c) any changes in applicable Legal Requirements
or GAAP; (d) the announcement of this Agreement or the pendency or consummation of the transactions
contemplated hereby; or (e) any failure by the Company or any of its Subsidiaries to meet revenue
or earnings projections (provided that such exclusion shall not apply to any underlying
Effect that may have caused such failure to meet revenue or earnings projections).

          (aaa) “Merger Consideration” shall mean the Preferred Stock Merger Consideration and the
Common Stock Merger Consideration.

-7-

 

          (bbb) “Merger Sub Common Stock” shall mean the common stock, par value $0.01 per share, of
Merger Sub.

          (ccc) “NYSE” shall mean The New York Stock Exchange.

          (ddd) “Open Source” shall mean any open source, public source or freeware Intellectual
Property, or any modification or derivative thereof, including any version of any software licensed
pursuant to any GNU general public license or limited general public license or software that is
licensed pursuant to a license that purports to require the distribution of or access to Source
Code or purports to restrict the licensee’s ability to charge for distribution of or to use
software for commercial purposes or requires the inclusion of attribution notices in any
redistributed software.

          (eee) “Parent Common Stock” shall mean the common stock of Parent, par value $0.01 per share.

          (fff) “Parent Stock Price” shall mean the average of the closing sale prices for a share of
Parent Common Stock as quoted on NYSE for the ten (10) consecutive trading days ending with the
second trading day that precedes the Closing Date.

          (ggg) “Pension Plan” shall mean each Company Employee Plan that is an “employee pension
benefit plan,” within the meaning of Section 3(2) of ERISA.

          (hhh) “Permitted Liens” shall mean any of the following: (i) Liens for Taxes, assessments and
governmental charges or levies either not yet due and payable or which are being contested in good
faith by appropriate proceedings and for which appropriate reserves have been established in
accordance with GAAP; (ii) mechanics, carriers’, workmen’s, warehouseman’s, repairmen’s,
materialmen’s or other Liens or security interests that are not yet due; (iii) Liens to secure
obligations to landlords, lessors or renters under leases or rental agreements or underlying leased
property; (iv) Liens imposed by applicable Legal Requirements (other than Tax law); (v) pledges or
deposits to secure obligations under workers’ compensation laws or similar legislation or to secure
public or statutory obligations; (vi) pledges and deposits to secure the performance of bids, trade
contracts, leases, surety and appeal bonds, performance bonds and other obligations of a similar
nature, in each case in the ordinary course of business; and (vii) Liens the existence of which are
specifically disclosed in the notes to the consolidated financial statements of the Company
included in the Company SEC Reports.

          (iii) “Person” shall mean any individual, corporation (including any non-profit corporation),
general partnership, limited partnership, limited liability partnership, joint venture, estate,
trust, company (including any limited liability company or joint stock company), firm or other
enterprise, association, organization, entity or Governmental Entity.

          (jjj) “Preferred Stock Merger Consideration” shall mean the sum of (i) the Liquidation Amount
plus (ii) an amount equal to five percent (5%) of the Liquidation Amount, without interest.

          (kkk) “Proxy Statement” shall mean the proxy statement to be filed by the Company with the SEC
in connection with the solicitation of proxies from Company stockholders for the Company
Stockholder Approval, as amended or supplemented.

          (lll) “PTO” shall mean the United States Patent and Trademark Office.

-8-

 

          (mmm) “Registered Intellectual Property” shall mean applications, registrations and filings
for Intellectual Property Rights that have been registered, filed, certified or otherwise perfected
or recorded with or by any state, government or other public or quasi-public legal authority.

          (nnn) “SEC” shall mean the United States Securities and Exchange Commission.

          (ooo) “Securities Act” shall mean the Securities Act of 1933, as amended.

          (ppp) “Shrink-Wrapped Code” shall mean generally commercially available binary code (other
than development tools and development environments) where available for a cost of not more than
$10,000 for a perpetual license for a single user or work station (or $75,000 in the aggregate for
all users and work stations).

          (qqq) “Source Code” shall mean computer software and code, in form other than object code
form, including related programmer comments and annotations, help text, data and data structures,
instructions and procedural, object-oriented and other code, which may be printed out or displayed
in human readable form.

          (rrr) “Subsidiary” shall mean, when used with respect to any party, any corporation,
association, business entity, partnership, limited liability company or other Person of which such
party, either alone or together with one or more Subsidiaries or by one or more Subsidiaries
(i) directly or indirectly owns or controls securities or other interests representing more than
fifty percent (50%) of the voting power of such Person, or (ii) is entitled, by Contract or
otherwise, to elect, appoint or designate directors constituting a majority of the members of such
Person’s board of directors or other governing body.

          (sss) “Superior Proposal” shall mean, with respect to the Company, an unsolicited, bona fide
written Alternative Transaction Proposal that (i) the Board of Directors of the Company determines
in good faith (after consultation with its outside legal counsel and the Company Financial Advisor)
to be more favorable (taking into account all relevant legal, financial, regulatory, timing and
other aspects of such Alternative Transaction Proposal (including the conditions thereto) and the
identity of the Person making the proposal), and provides greater financial value, to the Company’s
stockholders than the transactions contemplated by this Agreement (after taking into account all of
the terms of any proposal by Parent to amend or modify the terms of the transactions contemplated
by this Agreement), (ii) provides for consideration consisting exclusively of cash and/or publicly
traded securities, and for which financing, to the extent required by the Person making the offer,
is then fully committed and not subject to any contingencies other than the conditions to such
Alternative Transaction Proposal, and (iii) is reasonably capable of being consummated on the terms
proposed without unreasonable delay relative to the transactions contemplated by this Agreement;
provided that, for purposes of this definition of “Superior Proposal,” that each reference to “15%”
in the definition of “Alternative Transaction Proposal” contained herein shall be deemed to be a
reference to “85%.”

          (ttt) “Termination Fee” shall mean an amount in cash equal to sixteen million one hundred
thirty five thousand dollars ($16,135,000.00).

          (uuu) “Trade Secrets” shall mean trade and industrial secrets and confidential information.

          (vvv) “Voting Debt” shall mean any bonds, debentures, notes or other indebtedness of the
Company or any of its Subsidiaries (i) having the right to vote on any matters on which
stockholders may

-9-

 

vote (or which is convertible into, or exchangeable for, securities having such right) or
(ii) the value of which is any way based upon or derived from capital or voting stock of the
Company.

          (www) “WARN” shall mean the Worker Adjustment and Retraining Notification Act, as amended.

     1.2 Additional Defined Terms.  The following capitalized terms shall have the respective
meanings set forth in the respective Sections of this Agreement set forth opposite each such
respective terms below:

	 	 	 
	Term	 	Section
	 
	401(k) Plan
	 	6.9(b)
	Agreement
	 	Preamble
	Antitrust Restraint
	 	6.6(e)
	Certificate of Designations
	 	3.1(b)
	Certificate of Merger
	 	2.2
	Certificates
	 	2.8(c)
	Change of Recommendation Notice
	 	6.3(d)(ii)
	Closing
	 	2.2
	Closing Date
	 	2.2
	Code
	 	2.8(d)
	Company
	 	Preamble
	Company Balance Sheet
	 	3.4(b)
	Company Charter Documents
	 	3.1(b)
	Company Disclosure Letter
	 	Article III
	Company Environmental Permits
	 	3.13(c)
	Company Financials
	 	3.4(b)
	Company Material Contract
	 	3.17(a)
	Company Purchase Plans
	 	3.2(c)
	Company SEC Reports
	 	3.4(a)
	Company Stockholder Approval
	 	3.3(a)
	Company Stockholders’ Meeting
	 	6.2(a)
	Confidentiality Agreement
	 	6.4(a)
	Continuation Notice
	 	6.3(e)
	Continuing Employees
	 	6.9(d)
	Cutoff Time
	 	3.2(a)
	Delaware Law
	 	RECITALS
	Dissenting Shares
	 	2.7(a)
	Dissenting Stockholder
	 	2.7(a)
	Effective Time
	 	2.2
	End Date
	 	8.1(b)
	Engagement Letter
	 	3.14
	Exchange Agent
	 	2.8(a)
	Exchange Fund
	 	2.8(b)
	Fairness Opinion
	 	3.20
	GAAP
	 	3.4(b)

-10-

 

	 	 	 
	Term	 	Section
	 
	Governmental Authorizations
	 	3.9
	Hazardous Material
	 	3.13(a)
	Hazardous Materials Activities
	 	3.13(b)
	Indemnified Parties
	 	6.10(a)
	Key Employee Non-Competition Agreements
	 	RECITALS
	Key Employee Offer Letters
	 	RECITALS
	Key Employees
	 	RECITALS
	Lease Documents
	 	3.7(b)
	Leased Real Property
	 	3.7(a)
	Medicare Part D
	 	3.16(b)
	Merger
	 	2.1
	Merger Sub
	 	Preamble
	Necessary Consents
	 	3.3(c)
	Parent
	 	Preamble
	Parent Plans
	 	6.9(d)
	Representatives
	 	6.3(a)
	Returns
	 	3.6(b)(i)
	RoHS
	 	3.13(a)
	Section 262
	 	2.7(a)
	Significant Customer
	 	3.22(a)
	Significant Supplier
	 	3.22(b)
	SOX
	 	3.4(a)
	Subsidiary Charter Documents
	 	3.1(b)
	Surviving Corporation
	 	2.1
	Tax
	 	3.6(a)
	Taxes
	 	3.6(a)
	Triggering Event
	 	8.1
	Voting Agreements
	 	RECITALS

ARTICLE II

THE MERGER

     2.1 The Merger.  At the Effective Time and subject to and upon the terms and conditions of
this Agreement and the applicable provisions of Delaware Law, Merger Sub shall be merged with and
into the Company (the “Merger”), the separate corporate existence of Merger Sub shall cease and the
Company shall continue as the surviving corporation and as a wholly owned subsidiary of Parent.
The surviving corporation after the Merger is hereinafter sometimes referred to as the “Surviving
Corporation.”

     2.2 Effective Time; Closing.  Subject to the provisions of this Agreement, the parties hereto
shall cause the Merger to be consummated by filing a Certificate of Merger with the Secretary of
State of the State of Delaware in accordance with the relevant provisions of Delaware Law (the
“Certificate of Merger”) (the time of such filing with the Secretary of State of the State of
Delaware, or such later time as may be agreed in writing by the Company and Parent and specified in
the Certificate of Merger, being the “Effective Time”) as soon as practicable on or after the
Closing Date. The closing of the Merger (the “Closing”) shall take place at the offices of Wilson
Sonsini Goodrich & Rosati, Professional Corporation, located at 650 Page Mill Road, Palo Alto,
California, at a time and date to be specified by the parties, which shall be no later than the
second

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Business Day after the satisfaction or waiver of the conditions set forth in Article V
(other than those that by their terms are to be satisfied or waived at the Closing), or at such
other time, date and location as the parties hereto agree in writing. The date on which the
Closing occurs is referred to herein as the “Closing Date.”

     2.3 Effect of the Merger.  At the Effective Time, the effect of the Merger shall be as
provided in this Agreement and the applicable provisions of Delaware Law. Without limiting the
generality of the foregoing, and subject thereto, at the Effective Time all the property, rights,
privileges, powers and franchises of the Company and Merger Sub shall vest in the Surviving
Corporation, and all debts, liabilities and duties of the Company and Merger Sub shall become the
debts, liabilities and duties of the Surviving Corporation.

     2.4 Certificate of Incorporation and Bylaws.  Unless otherwise determined by Parent prior to
the Effective Time, at the Effective Time, the Certificate of Incorporation of the Company shall be
amended and restated in its entirety to be identical to the Certificate of Incorporation of Merger
Sub, as in effect immediately prior to the Effective Time, until thereafter amended in accordance
with Delaware Law and as provided in such Certificate of Incorporation; provided,
however, that at the Effective Time, Article I of the Certificate of Incorporation
of the Surviving Corporation shall be amended and restated in its entirety to read as follows: “The
name of the corporation is Secure Computing Corporation” and the Certificate of Incorporation shall
be amended so as to comply with Section 6.10(a). Unless otherwise determined by Parent
prior to the Effective Time, at the Effective Time, the Bylaws of the Company shall be amended and
restated in their entirety to be identical to the Bylaws of Merger Sub, as in effect immediately
prior to the Effective Time, until thereafter amended in accordance with Delaware Law and as
provided in such Bylaws; provided, however, that at the Effective Time, the Bylaws shall be amended
so as to comply with Section 6.10(a).

     2.5 Directors and Officers.  Unless otherwise determined by Parent prior to the Effective
Time, (a) the initial directors of the Surviving Corporation shall be the directors of Merger Sub
immediately prior to the Effective Time, until their respective successors are duly elected or
appointed and qualified, (b) the initial officers of the Surviving Corporation shall be the
officers of Merger Sub immediately prior to the Effective Time, until their respective successors
are duly appointed, and (c) Parent, the Company and the Surviving Corporation shall cause the
directors and officers of Merger Sub immediately prior to the Effective Time to be the directors
and officers, respectively of each of the Company’s Subsidiaries immediately after the Effective
Time, each to hold office as a director or officer of each such Subsidiary in accordance with the
provisions of the laws of the respective jurisdiction of organization and the respective bylaws or
equivalent organizational documents of each such Subsidiary.

     2.6 Effect on Capital Stock.  Upon the terms and subject to the conditions of this Agreement,
at the Effective Time, by virtue of the Merger and without any action on the part of Parent, Merger
Sub, the Company or the holders of any shares of capital stock of the Company, the following shall
occur:

          (a) Company Common Stock. Each share of Company Common Stock issued and outstanding
immediately prior to the Effective Time, other than any shares of Company Common Stock to be
cancelled pursuant to Section 2.6(e), will be cancelled and extinguished and automatically
converted (subject to Section 2.7) into the right to receive the Common Stock Merger
Consideration upon surrender of the certificate representing such share of Company Common Stock in
the manner provided in Section 2.8 (or in the case of a lost, stolen or destroyed
certificate, upon delivery of an affidavit (and bond, if required) in the manner provided in
Section 2.10).

          (b) Company Preferred Stock. Each share of Company Series A Preferred Stock issued and
outstanding immediately prior to the Effective Time, will be redeemed, cancelled and extinguished
and

-12-

 

automatically converted (subject to Section 2.7) into the right to receive the
Preferred Stock Merger Consideration, upon surrender of the certificate representing such share of
Company Series A Preferred Stock in the manner provided in Section 2.8 (or in the case of a
lost, stolen or destroyed certificate, upon delivery of an affidavit (and bond, if required) in the
manner provided in Section 2.10).

          (c) Company Unvested Common Stock and Company RSUs. As of the Effective Time, each share of
Company Unvested Common Stock that is outstanding as of the Effective Time and each Company RSU
that is unexpired, unexercised, unvested (after giving effect to the waivers of acceleration
contained in the Key Employee Offer Letters) and outstanding as of the Effective Time, shall, on
the terms and subject to the conditions set forth in this Agreement, be assumed by Parent. Each
such share of Company Unvested Common Stock and each Company RSU so assumed by Parent under this
Agreement shall continue to have, and be subject to, the same terms and conditions (including, if
applicable, the vesting arrangements and other terms and conditions set forth in the Company Stock
Plans and the applicable purchase agreement) as are in effect immediately prior to the Effective
Time, except that such share of Company Unvested Common Stock or Company RSU shall represent that
number of whole shares of Parent Common Stock equal to the product (rounded down to the next whole
number of shares of Parent Common Stock, with no cash being payable for any fractional share
eliminated by such rounding) obtained by multiplying (i) the number of shares of Company Unvested
Common Stock or Company RSUs held by such Person immediately prior to the Effective Time by
(ii) the Exchange Ratio.

          (d) Company Warrants. Following the Effective Time, all Company Warrants outstanding at the
Effective Time shall be terminated and cancelled, and shall not represent any right to receive
consideration pursuant to the terms of this Agreement, and in no event shall such Company Warrants
continue to be or become exercisable for any equity securities of Parent, the Company or any of
their respective Subsidiaries, in each case pursuant to a Company Warrant termination agreement, in
the form attached hereto as Exhibit C, delivered by the holders of Company Warrants
contemporaneously with, or prior to, the execution of this Agreement by the parties hereto.

          (e) Cancellation of Treasury and Parent Owned Stock. Each share of Company Common Stock or
Company Series A Preferred Stock held by the Company or Parent, or any direct or indirect wholly
owned Subsidiary of the Company or of Parent, immediately prior to the Effective Time shall be
cancelled and extinguished without any conversion thereof.

          (f) Capital Stock of Merger Sub. Each share of Merger Sub Common Stock issued and outstanding
immediately prior to the Effective Time shall be converted into one validly issued, fully paid and
nonassessable share of common stock, no par value, of the Surviving Corporation. Each certificate
evidencing ownership of shares of Merger Sub Common Stock shall evidence ownership of such shares
of capital stock of the Surviving Corporation.

          (g) Stock Options. As of the Effective Time, each of the Company Options that is outstanding
(whether or not theretofore vested) will be terminated and cancelled in exchange for the right to
receive a single lump sum cash payment equal to the excess, if any, of (i) the product obtained by
multiplying (A) the Common Stock Merger Consideration by (B) the number of shares of Company Common
Stock subject to such Company Option, less (ii) the product obtained by multiplying (x) the
exercise price per share with respect to each share of Company Common Stock subject to such Company
Option by (y) the number of shares of Company Common Stock subject to such Company Option. Prior
to the Effective Time, the Company shall take or cause to be taken any and all actions reasonably
necessary to give effect to the treatment of the Company Options pursuant to this
Section 2.6(g).

-13-

 

          (h) Adjustments to Merger Consideration. The Merger Consideration shall be adjusted to
reflect fully the appropriate effect of any stock split, reverse stock split, stock dividend
(including any dividend or distribution of securities convertible into Company Common Stock or
Company Series A Preferred Stock, as the case may be), reorganization, recapitalization,
reclassification or other like change with respect to Company Common Stock or Company Series A
Preferred Stock, as the case may be, having a record date on or after the date hereof and prior to
the Effective Time.

     2.7 Dissenting Shares. 

          (a) Notwithstanding any other provisions of this Agreement to the contrary, any shares of
Company Common Stock or Company Series A Preferred Stock held by a holder who is entitled to
demand, and who properly demands, appraisal of such shares (a “Dissenting Stockholder”), pursuant
to, and also complies in all material respects with, Section 262 of Delaware Law (such Section,
“Section 262” and such shares, the “Dissenting Shares”), shall not be converted into or represent a
right to receive the applicable consideration for Company Common Stock or Company Series A
Preferred Stock set forth in Section 2.6, but rather, such Dissenting Stockholder shall
only be entitled to payment of the fair value of such Dissenting Shares in accordance with
Section 262 (and, at the Effective Time, such Dissenting Shares shall no longer be outstanding and
shall automatically be cancelled and shall cease to exist, and such Dissenting Stockholder shall
cease to have any right with respect thereto, except the right to receive the fair value of such
Dissenting Shares in accordance with Section 262).

          (b) Notwithstanding the provisions of Section 2.7(a), if any Dissenting Stockholder
shall effectively withdraw or lose (through failure to perfect or otherwise) such holder’s
appraisal rights under Section 262, then, as of the later of the Effective Time and the occurrence
of such event, such Dissenting Shares shall automatically be converted into and represent only the
right to receive the consideration for Company Common Stock or Company Series A Preferred Stock, as
applicable, set forth in Section 2.6, without interest thereon, upon surrender of the
certificate representing such shares.

          (c) The Company shall give Parent (i) prompt notice of any written demand for appraisal
received by the Company pursuant to Section 262, and (ii) the opportunity to participate in any
negotiations and proceedings with respect to such demands. The Company shall not, except with the
prior written consent of Parent, make any payment with respect to any such demands or offer to
settle or settle any such demands. Any communication to be made by the Company to any holder of
Company Common Stock with respect to such demands shall be submitted to Parent in advance and shall
not be presented to any holder of Company Common Stock prior to the Company receiving Parent’s
consent (not to be unreasonably withheld or delayed; and in no event delayed in a manner that
prevents the Company from timely complying with its obligations under Section 262 or other
applicable Legal Requirements).

     2.8 Surrender of Certificates. 

          (a) Exchange Agent. Parent shall select an institution reasonably acceptable to the Company
(whose consent shall not be unreasonably withheld or delayed) to act as the exchange agent (the
“Exchange Agent”) for the Merger and the payment of the Merger Consideration.

          (b) Parent to Provide Cash. Prior to the Effective Time, Parent shall enter into an agreement
with the Exchange Agent (to be effective as of the Effective Time) that shall provide that Parent
shall deposit with the Exchange Agent, in trust for the benefit of the Company’s stockholders and
for exchange in accordance with this Article II, the aggregate Merger Consideration payable
pursuant to

-14-

 

Section 2.6. Any cash deposited with the Exchange Agent shall hereinafter be referred
to as the “Exchange Fund.”

          (c) Exchange Procedures. Promptly following the Effective Time, Parent shall instruct the
Exchange Agent to mail to each holder of record of certificates or instruments evidencing the
Company Common Stock, Company Series A Preferred Stock, and, in Parent’s discretion, Company
Options, that were outstanding immediately prior to the Effective Time (collectively, the
“Certificates”) and which were converted into the right to receive the applicable portion of the
Merger Consideration pursuant to Section 2.6, (i) a letter of transmittal (which shall
specify that delivery shall be effected, and risk of loss and title to the Certificates shall pass,
only upon proper delivery of the Certificates to the Exchange Agent, and shall be in such form and
have such other provisions as Parent and/or the Exchange Agent may reasonably specify), and
(ii) instructions for use in effecting the surrender of the Certificates in exchange for the
applicable portion of the Merger Consideration. Upon surrender of Certificates for cancellation to
the Exchange Agent or to such other agent or agents as may be appointed by Parent, together with
such letter of transmittal, duly completed and validly executed in accordance with the instructions
thereto, and such other documents as may reasonably be required by Parent or the Exchange Agent
(including any required IRS Form W-9 or Form W-8), the holders of such Certificates shall be
entitled to receive in exchange therefor a check or wire transfer in the amount of U.S. dollars
representing the applicable portion of the Merger Consideration that such holders have the right to
receive pursuant to Section 2.6, and the Certificates so surrendered shall forthwith be
cancelled. Until so surrendered, outstanding Certificates will be deemed from and after the
Effective Time, for all corporate purposes, to evidence only the right to receive upon surrender
thereof the applicable portion of the Merger Consideration that the holders thereof have the right
to receive pursuant to Section 2.6. No interest will be paid or accrued on any cash
payable to holders of Certificates pursuant to this Agreement. In the event of a transfer of
ownership of shares of Company Common Stock or Company Series A Preferred Stock or Company Options
(if applicable) that is not registered in the transfer records of the Company, the applicable
portion of the Merger Consideration that the holder thereof has the right to receive pursuant to
Section 2.6 may paid to a transferee if the Certificate representing such shares of Company
Common Stock, Company Series A Preferred Stock or Company Options (if applicable) is presented to
the Exchange Agent, accompanied by all documents required to evidence and effect such transfer and
by evidence that any applicable stock transfer Taxes have been paid.

          (d) Required Withholding. Each of Parent, the Exchange Agent and the Surviving Corporation
shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable
pursuant to this Agreement such amounts as may be required to be deducted or withheld therefrom
under the Internal Revenue Code of 1986, as amended (the “Code”), or any other applicable Legal
Requirement. To the extent such amounts are so deducted or withheld, the amount of such
consideration shall be treated for all purposes under this Agreement as having been paid to the
Person to whom such consideration would otherwise have been paid.

          (e) No Liability. Notwithstanding anything to the contrary in this Section 2.8,
neither Parent, the Exchange Agent, the Surviving Corporation nor any party hereto shall be liable
to a holder of shares of Company Common Stock, Company Series A Preferred Stock or Company Options
for any amount paid to a public official pursuant to any applicable abandoned property, escheat or
similar law.

          (f) Investment of Exchange Fund. The Exchange Agent shall invest the cash included in the
Exchange Fund as directed by Parent on a daily basis; provided that no such investment or
loss thereon shall affect the amounts payable to Company stockholders pursuant to this
Article II. Any interest and other income resulting from such investment shall become a
part of the Exchange Fund, and any amounts in excess

-15-

 

of the amounts payable to Company stockholders or holders of Company Options pursuant to this
Article II shall promptly be paid to Parent. To the extent that there are any losses with
respect to any such investments, or the Exchange Fund diminishes for any reason below the level
required for the Exchange Agent to promptly pay the cash amounts contemplated by this
Article II, Parent shall, or shall cause the Surviving Corporation to, promptly replace or
restore the cash in the Exchange Fund so as to ensure that the Exchange Fund is at all times
maintained at a level sufficient for the Exchange Agent to make such payments contemplated by this
Article II.

          (g) Termination of Exchange Fund. Any portion of the Exchange Fund which remains
undistributed to the holders of Certificates twelve (12) months after the Effective Time shall, at
the request of the Surviving Corporation, be delivered to the Surviving Corporation or otherwise
according to the instruction of the Surviving Corporation, and any holders of the Certificates who
have not surrendered such Certificates in compliance with this Section 2.8 shall after such
delivery to the Surviving Corporation, subject to Section 2.8(e), look only to the
Surviving Corporation solely as general creditors for the cash constituting the Merger
Consideration (which shall not accrue interest) pursuant to Section 2.6(a).

     2.9 No Further Ownership Rights in any Company Securities.  All Merger Consideration paid upon
the surrender for exchange of Company Common Stock, Company Series A Preferred Stock and Company
Options in accordance with the terms hereof shall be deemed to have been paid in full satisfaction
of all rights pertaining to such Company Common Stock, Company Series A Preferred Stock and Company
Options, and there shall be no further registration of transfers on the records of the Surviving
Corporation of shares of Company Common Stock, Company Series A Preferred Stock and Company Options
which were outstanding immediately prior to the Effective Time. If, after the Effective Time,
Certificates are presented to the Surviving Corporation for any reason, they shall be cancelled and
exchanged as provided in this Article II.

     2.10 Lost, Stolen or Destroyed Certificates.  In the event any Certificates shall have been
lost, stolen or destroyed, the Exchange Agent shall issue in exchange for such lost, stolen or
destroyed Certificates, upon the making of an affidavit of that fact by the holder thereof, such
cash constituting the Merger Consideration; provided, however, that Parent or
Exchange Agent may, in its discretion and as a condition precedent to the issuance thereof, require
the owner of such lost, stolen or destroyed Certificates to deliver a bond in such sum as it may
reasonably direct as indemnity against any claim that may be made against Parent, the Company or
the Exchange Agent with respect to the Certificates alleged to have been lost, stolen or destroyed.

     2.11 Further Action.  At and after the Effective Time, the officers and directors of Parent
and the Surviving Corporation will be authorized to execute and deliver, in the name and on behalf
of the Company and Merger Sub, any deeds, bills of sale, assignments or assurances and to take and
do, in the name and on behalf of Company and Merger Sub, any other actions and things to vest,
perfect or confirm of record or otherwise in the Surviving Corporation any and all right, title and
interest in, to and under any of the rights, properties or assets acquired or to be acquired by the
Surviving Corporation as a result of, or in connection with, the Merger.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     Except as set forth in the disclosure letter of the Company addressed to Parent and Merger
Sub, dated as of the date hereof and delivered to Parent and Merger Sub concurrently with the
parties’ execution of this Agreement (the “Company Disclosure Letter”), referencing a
representation or warranty herein (it being

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understood that (i) the Company Disclosure Letter shall be arranged in sections and
subsections corresponding to the sections and subsections contained in this Article III,
(ii) the disclosures in any section or subsection of the Company Disclosure Letter shall qualify
the applicable representations and warranties in the corresponding section or subsection of this
Article III and, in addition, the representations and warranties in other sections or
subsections in this Article III to the extent it is reasonably apparent on the face of such
disclosures that such disclosures are applicable to such other sections or subsections, and (iii)
such disclosures in the Company Disclosure Letter relating to representations and warranties in
this Article III shall also be deemed to be representations and warranties made by the
Company under this Article III (to the extent required by such representations and
warranties)), the Company represents and warrants to Parent and Merger Sub as follows:

     3.1 Organization; Standing and Power; Charter Documents; Subsidiaries. 

          (a) Organization; Standing and Power. The Company and each of its Subsidiaries (i) is a
corporation or other organization duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation or organization (except, in the case of good
standing, for entities organized under the laws of any jurisdiction that does not recognize such
concept), (ii) has the requisite power and authority to own, lease and operate its properties and
to carry on its business as currently conducted, and (iii) is duly qualified or licensed to do
business and in good standing as a foreign corporation in each jurisdiction in which the character
or location of its assets or properties (whether owned, leased or licensed) or the nature of its
business makes such qualification or licensing necessary, except where the failure to be so
qualified or licensed to do business and to be in good standing would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect on the Company.

          (b) Charter Documents. The Company has made available to Parent (i) a true and correct copy
of the certificate of incorporation, the certificate of designations, preferences and rights of
Company Series A Preferred Stock (the “Certificate of Designations”), and bylaws of the Company,
each as amended to date (collectively, the “Company Charter Documents”) and (ii) the certificate of
incorporation and bylaws, or like organizational documents (collectively, “Subsidiary Charter
Documents”), of each of its Subsidiaries, and each such instrument is in full force and effect.
The Company is not in violation of any of the provisions of the Company Charter Documents and each
Subsidiary is not in violation of its respective Subsidiary Charter Documents.

          (c) Subsidiaries. Section 3.1(c) of the Company Disclosure Letter sets forth each
Subsidiary of the Company. The Company is the owner, directly or indirectly, of all of the
outstanding shares of capital stock of, or other equity or voting interests in, each such
Subsidiary and all such shares or interests have been duly authorized, validly issued and are fully
paid and nonassessable, free and clear of all Liens, including any restriction on the right to
vote, sell or otherwise dispose of such capital stock or other ownership interests, except for
restrictions imposed by applicable securities laws. Other than the Subsidiaries of the Company,
neither the Company nor any of its Subsidiaries owns any capital stock of, or other equity or
voting interests of any nature in, or any interest convertible, exchangeable or exercisable for,
capital stock of, or other equity or voting interests of any nature in, any other Person, except
for passive investments of less than 1% in the equity interests of public companies as part of the
Company’s cash management program.

     3.2 Capital Structure. 

          (a) Capital Stock. The authorized capital stock of Company consists of: (i) one hundred
million (100,000,000) shares of Company Common Stock and (ii) two million (2,000,000) shares of

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Company Preferred Stock, of which seven hundred thousand (700,000) shares are designated
Company Series A Preferred Stock. As of the close of business on September 18, 2008 (the “Cutoff
Time”): (i) 68,319,443 shares of Company Common Stock were issued and outstanding (excluding shares
of Company Common Stock held by the Company in its treasury and Company Unvested Common Stock),
(ii) 2,175,835 shares of Company Unvested Common Stock were issued and outstanding, (iii) 350,423
Company RSUs were issued and outstanding, (iv) 6,656,910 shares of Company Common Stock were issued
and held by the Company in its treasury and (v) seven hundred thousand (700,000) shares of Company
Series A Preferred Stock were issued and outstanding, and no other shares of Company Preferred
Stock were issued and outstanding. No shares of Company Common Stock or Company Series A Preferred
Stock are owned or held by any Subsidiary of the Company. All outstanding shares of Company Common
Stock and Company Series A Preferred Stock are duly authorized, validly issued, fully paid and
non-assessable and are not subject to preemptive rights created by statute, the Company Charter
Documents, or any agreement to which the Company is a party or by which it is bound. In the period
from the Cutoff Time to the date hereof, the Company has not issued any shares of Company Stock
other than pursuant to the exercise of Company Options, Company RSUs or Company Warrants
outstanding as of the Cutoff Time.

          (b) Company Unvested Common Stock and Company RSUs. Section 3.2(b) of the Company
Disclosure Letter sets forth, as of the Cutoff Time, a list of each holder of Company Unvested
Common Stock and Company RSUs, and (i) the name and address of the holder of such Company Unvested
Common Stock or Company RSUs, (ii) the number of shares of Company Unvested Common Stock or Company
RSUs held by such holder, (iii) the date of issuance of such shares of Company Unvested Common
Stock or Company RSUs, (iv) the repurchase price of such Company Unvested Common Stock, (v) the
applicable vesting schedule of such Company RSUs, and the applicable vesting schedule for such
Company Unvested Common Stock pursuant to which the Company’s right of repurchase or forfeiture
lapses, (vi) the extent to which such Company right of repurchase or forfeiture has lapsed as of
the date hereof and whether such right of repurchase or forfeiture will be accelerated or otherwise
affected by the transactions contemplated hereby with respect to the Company Unvested Common Stock,
and (vii) whether or not the holder of such shares of Company Unvested Common Stock or Company RSUs
is an employee of the Company or one of its Subsidiaries. There are no commitments or agreements
of any character to which the Company is bound obligating the Company to waive its right of
repurchase or forfeiture with respect to any Company Unvested Common Stock as a result of the
Merger (whether alone or upon the occurrence of any additional or subsequent events). In the
period from the Cutoff Time to the date hereof, the Company has not issued any shares of Company
Unvested Common Stock or Company RSUs.

          (c) Company Options and Company Warrants. As of the Cutoff Time: (i) 10,616,972 shares of
Company Common Stock are issuable upon the exercise of Company Options under the Company Stock
Plans, the weighted average exercise price of such Company Options is $8.89472, and 8,647,656
shares of Company Common Stock underlying such Company Options are vested and exercisable;
(ii) 4,627,408 shares of Company Common Stock are available for future grant under the Company
Stock Plans; (iii) 1,095,182 shares of Company Common Stock are available for issuance under the
Company’s Amended and Restated Employee Stock Purchase Plan and any other employee stock purchase
plan of the Company (the “Company Purchase Plans”); (iv) no shares of Company Common Stock are
issuable pursuant to outstanding options to purchase Company Common Stock (A) which are issued
other than pursuant to the Company Stock Plans and (B) other than shares reserved for issuance
under the Company Purchase Plans; and (v) 1,064,259 shares of Company Common Stock are issuable
upon the exercise of Company Warrants. Section 3.2(c) of the Company Disclosure Letter
sets forth a list of each outstanding Company Option and Company Warrant: (a) the particular
Company Stock Plan (if any) pursuant to which any such Company Option was granted; (b) the name and
address of the holder of such Company Option or Company Warrant;

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(c) the number of shares of Company Common Stock subject to such Company Option or Company
Warrant; (d) the exercise price of such Company Option or Company Warrant; (e) the date on which
such Company Option or Company Warrant was granted or issued; (f) the applicable vesting schedule,
if any, and the extent to which such Company Option or Company Warrant is vested and exercisable as
of the date hereof; and (g) the date on which such Company Option or Company Warrant expires. All
shares of Company Common Stock subject to issuance under the Company Stock Plans, the Company
Purchase Plans and the Company Warrants, upon issuance on the terms and conditions specified in the
instruments pursuant to which they are issuable, will be duly authorized, validly issued, fully
paid and nonassessable. There are no commitments or agreements of any character to which the
Company is bound obligating the Company to accelerate the vesting of any Company Option as a result
of the Merger (whether alone or upon the occurrence of any additional or subsequent events). As of
the end of the second most recent payroll period ending prior to the date hereof (which ended on
August 31, 2008), the aggregate amount credited to the accounts of participants in the Company
Purchase Plans was $172,940.26 and the aggregate amount credited to such accounts for such payroll
period was $65,782.30. There are no outstanding or authorized stock appreciation, phantom stock,
profit participation or other similar rights with respect to the Company. In the period from the
Cutoff Time to the date hereof, the Company has not granted any Company Options or issued any
Company Warrants.

          (d) Voting Debt. No Voting Debt is issued or outstanding as of the date hereof.

          (e) Other Securities. Except as otherwise set forth in Section 3.2(b),
Section 3.2(c) or Section 3.2(e) of the Company Disclosure Letter, as of the date
hereof, there are no securities, options, warrants, calls, rights, contracts, commitments,
agreements, instruments, arrangements, understandings, obligations or undertakings of any kind to
which the Company or any of its Subsidiaries is a party or by which any of them is bound obligating
the Company or any of its Subsidiaries to (including on a deferred basis) issue, deliver or sell,
or cause to be issued, delivered or sold, additional shares of Company Stock, Voting Debt or other
voting or non-voting securities of the Company or any of its Subsidiaries, or obligating the
Company or any of its Subsidiaries to issue, grant, extend or enter into any such security, option,
warrant, call, right, commitment, agreement, instrument, arrangement, understanding, obligation or
undertaking. All outstanding shares of Company Stock, Company Options, Company Warrants and all
outstanding shares of capital stock of each Subsidiary of the Company have been issued, granted or
repurchased in compliance with (i) all applicable securities laws and all other applicable Legal
Requirements, and (ii) all requirements set forth in applicable Contracts of the Company or any of
its Subsidiaries. Except for shares of Company Unvested Common Stock, there are no outstanding
Contracts of the Company or any of its Subsidiaries to (x) repurchase, redeem or otherwise acquire
any shares of capital stock of, or other equity or voting interests in, the Company or any of its
Subsidiaries or (y) dispose of any shares of the capital stock of, or other equity or voting
interests in, any of its Subsidiaries. The Company is not a party to any voting agreement with
respect to shares of the capital stock of, or other equity or voting interests in, the Company or
any of its Subsidiaries and, to the knowledge of the Company, other than the Voting Agreements and
the irrevocable proxies granted pursuant to the Voting Agreements, there are no irrevocable proxies
and no voting agreements, voting trusts, rights plans, anti-takeover plans or registration rights
agreements with respect to any shares of the capital stock of, or other equity or voting interests
in, the Company or any of its Subsidiaries.

     3.3 Authority; No Conflict; Necessary Consents. 

          (a) Authority. The Company has all requisite power and authority to enter into this Agreement
and to consummate the transactions contemplated hereby, subject, in the case of consummation of the
Merger, to obtaining Company Stockholder Approval (as defined below) as contemplated in
Section 6.2.

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The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary corporate action on the part of the
Company, and no further action is required on the part of the Company to authorize the execution
and delivery of this Agreement or to consummate the Merger and the other transactions contemplated
hereby, subject only to obtaining the Company Stockholder Approval and the filing of the
Certificate of Merger pursuant to Delaware Law. The vote of the Company’s stockholders that is
required by the Charter Documents, by applicable Legal Requirements and by any applicable Contracts
between the Company and any of its stockholders, to approve this Agreement, the Merger and the
transactions contemplated hereby by the Company stockholders is set forth in Section 3.3(a)
of the Company Disclosure Letter (such required vote set forth on Section 3.3(a) of the
Company Disclosure Letter, the “Company Stockholder Approval”). By resolution adopted by unanimous
vote at a meeting of all members of the Company’s Board of Directors duly called and held and not
subsequently rescinded or modified in any way, the Board of Directors of the Company has duly
(i) determined that the Merger is fair to, and in the best interests of, the Company and its
stockholders, and declared the Merger to be advisable, (ii) approved this Agreement and the
transactions contemplated hereby, including the Merger, and (iii) recommended that the stockholders
of the Company approve and adopt this Agreement and approve the Merger and directed that such
matter be submitted to the Company’s stockholders at the Company Stockholders’ Meeting. This
Agreement has been duly executed and delivered by the Company and, assuming due authorization,
execution and delivery by Parent and Merger Sub, constitutes the valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms, except that such
enforceability (a) may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other similar laws affecting or relating to creditors’ rights generally, and (b) is subject to
general principles of equity.

          (b) No Conflict. Neither the execution and delivery of this Agreement by the Company, nor the
consummation of the Merger or any other transaction contemplated hereby: (a) conflicts with, or
(with or without notice or lapse of time, or both) results in a termination, breach, impairment or
violation of, or constitutes a default under, or requires a consent, waiver or approval of any
Person under, (i) any provision of the Company Charter Documents or any Subsidiary Charter
Documents, each as currently in effect, (ii) subject to compliance with the requirements of the
Necessary Consents (as defined below), any Legal Requirement applicable to the Company, any of its
Subsidiaries, or any of their respective assets or properties, or (iii) any Company Material
Contract (as defined below) to which the Company or any of its Subsidiaries is a party or by which
the Company or any of its Subsidiaries or any of their respective assets or properties are bound,
(except in the case of clauses (ii) or (iii), where such conflicts, terminations, breaches,
impairments, violations or defaults, or failures to obtain such consents, waivers or approvals,
individually or in the aggregate, would not reasonably be expected to constitute a Material Adverse
Effect on the Company; or (b) will result in the creation of any Lien on any of the material
properties or assets of the Company or its Subsidiaries, except where such Liens, individually or
in the aggregate, would not reasonably be expected to constitute a Material Adverse Effect on the
Company.

          (c) Necessary Consents. No consent, waiver, approval, order or authorization of, or
registration, declaration or filing with any Governmental Entity is required to be obtained or made
by the Company in connection with the execution and delivery of this Agreement or the consummation
of the Merger and other transactions contemplated hereby and thereby, except for (i) the filing of
the Certificate of Merger with the Secretary of State of the State of Delaware and appropriate
documents, as required by applicable Legal Requirements, with the relevant authorities of other
states in which the Company and/or Parent are qualified to do business, (ii) the filing of the
Proxy Statement with the SEC in accordance with the Exchange Act and such other filings with
Governmental Entities as may be required by any federal or state securities laws, (iii) the filing
of the Notification and Report Forms with FTC and the Antitrust Division of

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the DOJ required by the HSR Act and the expiration or termination of the applicable waiting
period under the HSR Act and such consents, waivers, approvals, orders, authorizations,
registrations, declarations and filings as may be required under the foreign merger control
regulations, if applicable, and such consents, waivers, approvals, orders, authorizations,
registrations, declarations and filings as may be required under any required foreign merger
control regulations, if applicable, as reasonably determined Parent, and (iv) such other consents,
waivers, approvals, orders, authorizations, registrations, declarations and filings which if not
obtained or made would not have a Material Adverse Effect on the Company. The consents, approvals,
orders, authorizations, registrations, declarations and filings set forth in (i) through (iv) are
referred to herein as the “Necessary Consents.”

     3.4 SEC Filings; Financial Statements; Internal Controls. 

          (a) SEC Filings. Since January 1, 2005, the Company has filed all required registration
statements, prospectuses, reports, schedules, forms, statements, certifications and other documents
(including exhibits and all other information incorporated by reference) required to be filed by it
with, or furnished to, the SEC (all such required registration statements, prospectuses, reports,
schedules, forms, statements and other documents (including those that the Company may file
subsequent to the date hereof) are referred to herein as the “Company SEC Reports”). As of their
respective dates, the Company SEC Reports (i) were prepared in accordance and complied in all
material respects with the requirements of the Securities Act or the Exchange Act, as the case may
be, and the rules and regulations of the SEC thereunder applicable to such Company SEC Reports and
the disclosure requirements of Rule 4350 of the NASDAQ Global Select Market, in each case, as in
effect on the date such Company SEC Report was filed, and (ii) did not at the time they were filed
(or if amended or superseded by a filing prior to the date of this Agreement then on the date of
such filing) contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, unless corrected in a later filed
Company SEC Report. None of the Company’s Subsidiaries is required to file any forms, reports or
other documents with the SEC. The Company and each of its executive officers and directors are in
compliance with, and have complied, in each case in all material respects with (i) the applicable
provisions of the Sarbanes-Oxley Act of 2002 and the related rules and regulations promulgated
under or pursuant to such act (“SOX”), and (ii) the applicable listing and corporate governance
rules and regulations of the NASDAQ Global Select Market.

          (b) Financial Statements. Each of the consolidated financial statements (including, in each
case, any related notes thereto) contained in the Company SEC Reports (the “Company Financials”),
including each Company SEC Report filed after the date hereof until the Closing: (i) complied, as
of their respective dates of filing with the SEC, as to form in all material respects with the
published rules and regulations of the SEC with respect thereto, (ii) was prepared in accordance
with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis
throughout the periods involved (except as may be indicated in the notes thereto or, in the case of
unaudited interim financial statements, as may be permitted by the SEC on Form 10-Q or 8-K under
the Exchange Act), and (iii) fairly and accurately presented, in all material respects, the
consolidated financial position of the Company and its consolidated Subsidiaries as at the
respective dates thereof and the consolidated results of the Company’s operations and cash flows
for the periods indicated (except that the unaudited interim financial statements were subject to
normal and recurring year-end and quarter-end adjustments which were not material). The Company
does not intend to correct or restate, nor, to the knowledge of the Company, is there any basis,
facts or circumstances that would reasonably be expected to result in any correction or restatement
of, any material aspect of the Company Financials. The audited balance sheet of the Company
contained in the Company SEC Reports as of June 30, 2008, is hereinafter referred to as the
“Company Balance Sheet.” The Company has not had any

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significant dispute with any of its auditors regarding accounting matters or policies during
any of its past five (5) full fiscal years or during the current fiscal year-to-date. The books
and records of the Company and each Subsidiary have been, and are being, maintained in all material
respects in accordance with applicable legal and accounting requirements, and the Company
Financials are consistent with such books and records. Neither the Company nor any of its
Subsidiaries is a party to, or has any commitment to become a party to, any joint venture,
off-balance sheet partnership or any similar Contract relating to any transaction or relationship
between or among the Company or any of its Subsidiaries, on the one hand, and any unconsolidated
affiliate, including any structured finance, special purpose or limited purpose Person, on the
other hand, including, without limitation, any “off-balance sheet arrangements” (as defined in
Item 303(a) of Regulation S-K promulgated by the SEC), where the result, purpose or intended effect
of such contract or arrangement is to avoid disclosure of any material transaction involving, or
material liabilities of, the Company or any of its Subsidiaries in the Company’s or such
Subsidiary’s published financial statements or other Company SEC Reports. The Company and its
Subsidiaries have made appropriate disclosures in the Financial Statements in accordance with the
requirements of Financial Interpretation No. 48 of FASB Statement No. 109.

          (c) No Undisclosed Liabilities. Except as reflected or reserved against in the Company
Balance Sheet, neither the Company nor any of its Subsidiaries has any Liabilities of any nature
that would be required by GAAP to be reflected on a consolidated balance sheet of the Company and
its Subsidiaries or described in the notes thereto which are, individually or in the aggregate,
material to the business, results of operations or financial condition of the Company and its
Subsidiaries, taken as a whole, except (i) Liabilities incurred since the date of the Company
Balance Sheet in the ordinary course of business consistent with past practice which are of the
type which ordinarily recur and, individually or in the aggregate, are not material in nature or
amount and do not result from any breach of Contract, tort or violation of any applicable Legal
Requirement, and (ii) Liabilities arising under this Agreement or incurred in connection with the
transactions contemplated by this Agreement.

          (d) Amendments. The Company has made available to Parent a complete and correct copy of any
amendments or modifications which have not yet been filed with, or furnished to, the SEC, but which
are required to be filed or furnished, to agreements, documents or other instruments which
previously had been filed by Company with the SEC, or furnished by the Company to the SEC, pursuant
to the Securities Act or the Exchange Act. Since January 1, 2005, no “material contract” (as such
term is defined in Item 601(b)(10) of Regulation S-K promulgated by the SEC) filed as an exhibit to
the Company SEC Reports has been amended or modified, except for amendments or modifications which
have been filed as an exhibit to a subsequently dated Company SEC Report. The Company has
responded to all comment letters of the staff of the SEC relating to the Company SEC Reports, and
the SEC has not advised the Company that any final responses are inadequate, insufficient or
otherwise non-responsive. To the Company’s knowledge, none of the Company SEC Reports is the
subject of ongoing SEC review or outstanding SEC comments. The Company has made available to
Parent true, correct and complete copies of all correspondence between the SEC, on the one hand,
and the Company and any of its Subsidiaries, on the other, including all SEC comment letters and
responses to such comment letters by or on behalf of the Company, since January 1, 2005.

          (e) Internal Controls. The Company has established and maintains a system of internal
accounting controls sufficient to provide reasonable assurances that (i) transactions, receipts and
expenditures of the Company and its Subsidiaries are being executed and made only in accordance
with appropriate authorizations of management and the Company’s Board of Directors,
(ii) transactions are recorded as necessary (A) to permit preparation of financial statements in
conformity with GAAP applied on a consistent basis and (B) to maintain accountability for assets,
(iii) provide reasonable assurance regarding prevention or

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timely detection of unauthorized acquisition, use or disposition of the assets of the Company
and its Subsidiaries, (iv) the amount recorded for assets on the books and records of the Company
is compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. There are no “significant deficiencies” or “material weaknesses” (as
defined by the Public Company Accounting Oversight Board) in the design or operation of the
Company’s internal controls and procedures which could adversely affect the Company’s ability to
record, process, summarize and report financial data. To the Company’s knowledge, there is no
fraud, whether or not material, that involves management or other current or former employees of
the Company or any of its Subsidiaries who have a role in the Company’s internal control over
financial reporting. The Company has established and maintains “disclosure controls and
procedures” (as defined in Rule 13a-15 promulgated under the Exchange Act) designed to ensure that
information required to be disclosed by the Company in the reports that it files under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s
rules and forms and that such information is accumulated and communicated to the Company’s
principal executive officer and principal financial officer, or persons performing similar
functions, as appropriate to allow timely decisions regarding required disclosure and to make the
certifications of the “principal executive officer” and the “principal financial officer” of the
Company required by Section 302 of the SOX with respect to such reports, and such controls are
effective for this purpose. Each of the principal executive officer of the Company and the
principal financial officer of the Company (or each former principal executive officer of the
Company and each former principal financial officer of the Company, as applicable) has made all
certifications required by Sections 302 and 906 of SOX and the rules and regulations promulgated
thereunder with respect to the Company SEC Reports and the statements contained in such
certifications are true and accurate as of the date hereof. The Company has established and
maintains “internal control over financial reporting” (as defined in Rule 13a-15 promulgated under
the Exchange Act) and such internal control over financial reporting is effective in providing
reasonable assurance regarding the reliability of the Company’s financial reporting and the
preparation of the Company’s financial statements in accordance with GAAP.

     3.5 Absence of Certain Changes or Events.  Since the date of the Company Balance Sheet, the
Company and its Subsidiaries have operated their businesses in the ordinary course consistent with
past practices, and since such date there has not been:

          (a) any amendment or change in the Company Charter Documents or Subsidiary Charter Documents;

          (b) any Material Adverse Effect on the Company;

          (c) any acquisition by the Company or any Subsidiary of the Company, or agreement by the
Company or any Subsidiary to acquire by merging or consolidating with, or by purchasing, any
material portion of assets or equity securities of, or by any other manner, any business or
corporation, partnership, association or other business organization or division thereof;

          (d) any Contract, agreement in principle, letter of intent, memorandum of understanding or
similar agreement with respect to any material joint venture, strategic partnership or alliance;

          (e) any declaration, setting aside or payment of any dividend on, or other distribution
(whether in cash, stock or property) in respect of, any of the Company’s or any of its
Subsidiaries’ capital stock, or any purchase, redemption or other acquisition by the Company or any
of its Subsidiaries of any of the Company’s capital stock or any other securities of the Company or
its Subsidiaries, or any Company Option, Company Warrant, calls or rights to acquire any such
shares or other securities, except for

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repurchases from, and forfeitures by, Employees following their termination pursuant to the
terms of their pre-existing stock option or purchase agreements and restricted stock award and
restricted stock unit award agreements;

          (f) any split, combination or reclassification of any of the Company’s or any of its
Subsidiaries’ capital stock;

          (g) any forgiveness by the Company or any of its Subsidiaries, whether orally or in writing,
of any loan to any Employee in an amount exceeding $10,000;

          (h) (i) any material increase or decrease in compensation or fringe benefits (except for
normal increases or decreases of cash compensation to current non-officer employees in the ordinary
course of business consistent with past practice) by the Company or any of its Subsidiaries,
whether orally or in writing, (ii) any promise, commitment or payment by the Company or any of its
Subsidiaries, whether orally or in writing, of any material bonus (except for bonuses made to
current non-officer employees in the ordinary course of business consistent with past practice),
(iii) any adoption, change, or termination by the Company or any of its Subsidiaries, whether
orally or in writing, of any severance, change of control, termination or bonus plan, policy or
practice, or (iv) the adoption, termination or amendment of any Company Employee Plan or collective
bargaining agreement;

          (i) any amendment or termination with respect to any Company Material Contract;

          (j) (i) entry into a customer Contract that provides for (or is reasonably expected to provide
for) revenues in excess of $250,000 annually and contains any material non-standard terms,
including but not limited to, non-standard discounts, provisions for unpaid future deliverables,
non-standard service requirements or future royalty payments other than in the ordinary course of
business consistent with past practice, or any material change in the manner in which the Company
or any of its Subsidiaries extends discounts, credits or warranties to customers or otherwise deals
with its customers, or (ii) entry into any reseller or distributor agreement that provides for (or
is reasonably expected to provide for) revenues in excess of $250,000 annually), in each case,
other than in the ordinary course of business consistent with past practice;

          (k) any change by the Company in its accounting methods, except as required by GAAP or
applicable Legal Requirements;

          (l) any debt, capital lease or other debt or equity financing transaction by the Company or
any of its Subsidiaries or entry into any agreement by the Company or any of its Subsidiaries in
connection with any such transaction;

          (m) any material restructuring activities by the Company or any of its Subsidiaries, including
any reductions in force, lease terminations, restructuring of contracts or similar actions;

          (n) any sale, lease, license, encumbrance or other disposition of any business lines or any
properties or assets, except the sale, lease, license or disposition of property or assets which
are not material, individually or in the aggregate, to the business of the Company or the licenses
of current Company Products, in each case, in the ordinary course of business and in a manner
consistent with past practice;

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          (o) (i) any loan or extension of credit by the Company or any of its Subsidiaries to any
Person other than in the ordinary course of business consistent with past practice, or (ii) any
loan, advance or capital contribution to, or any investment in, any of the Company’s or its
Subsidiaries’ executive officers, directors or 1% stockholders or any firm or business enterprise
in which the Company had knowledge that such officer, director or stockholder had a direct or
indirect material interest at the time of such loan, advance, capital contribution or investment;

          (p) adoption of or change in any Tax accounting method or Tax election, entering into any
closing agreement in respect of Taxes, settlement or compromise of any Tax claim or assessment, or
extension or waiver of the limitation period applicable to any Tax claim or assessment other than
with respect to any Tax liability that is in an amount less than $200,000 individually or $400,000
in the aggregate;

          (q) any expenditure, transaction or commitment by the Company or any of its Subsidiaries
exceeding $200,000 individually or $400,000 in the aggregate, other than in the ordinary course of
business consistent with past practice;

          (r) any material damage, destruction or loss of any material property or material asset of the
Company or any of its Subsidiaries, whether or not covered by insurance;

          (s) any termination of employment of a senior manager or key employee, or the termination of a
material number of employees;

          (t) any claims or matters raised by any individual, Governmental Entity, or workers’
representative organization, bargaining unit or union, regarding, claiming or alleging a labor
dispute, labor trouble, wrongful discharge or any other unlawful employment or labor practice or
action with respect to the Company or any of its Subsidiaries;

          (u) any material Liability incurred by it to any of its officers, directors or stockholders,
except for normal and customary compensation and expense allowances payable to officers and
directors in the ordinary course of its business consistent with its past practices;

          (v) any commencement or settlement of any material litigation by the Company or any of its
Subsidiaries;

          (w) any material revaluation, or any indication that such a revaluation was merited under
GAAP, by the Company of any of its material assets, other than in the ordinary course of business
consistent with past practice; or

          (x) announcement of, any negotiation by or any entry into any Contract to do any of the things
described in the preceding clauses (a) through (w) by the Company or any of its Subsidiaries (other
than negotiations and agreements with Parent and its representatives regarding the transactions
contemplated by this Agreement).

     3.6 Taxes. 

          (a) Definition of Taxes. For the purposes of this Agreement, the term “Tax” or, collectively,
“Taxes” shall mean any and all U.S. federal, state, local and non-U.S. taxes, assessments and other
governmental charges, duties, impositions and liabilities relating to taxes, including taxes based
upon or

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measured by gross receipts, income, profits, sales, use and occupation, value added, ad
valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property
taxes as well as social security charges (including health, unemployment, workers’ compensation and
pension insurance) and fees, together with all interest, penalties and additions imposed with
respect to such amounts.

          (b) Tax Returns and Audits.

               (i) The Company and each of its Subsidiaries have timely filed all U.S. federal, state, local
and non-U.S. returns, estimates, information statements and reports (“Returns”) relating to all
Taxes of the Company or any of its Subsidiaries and such Returns are true and correct in all
material respects and have been completed in accordance with applicable Legal Requirements.

               (ii) The Company and each of its Subsidiaries have complied in all material respects with all
applicable Legal Requirements relating to the payment and withholding of Taxes (including
withholding of Taxes in connection with amounts paid or owing to any employee, former employee or
independent contractor) and has duly and timely withheld and has paid over to the appropriate
Governmental Entity all amounts required to be so withheld and paid over on or prior to the due
date thereof under all applicable Legal Requirements.

               (iii) Neither the Company nor any of its Subsidiaries has been delinquent in the payment of
any material Tax, nor is there any material Tax deficiency outstanding, assessed or proposed
against the Company or any of its Subsidiaries, nor has the Company or any of its Subsidiaries
executed any waiver of any statute of limitations on or extending the period for the assessment or
collection of any Tax, which waiver or extension is currently in effect.

               (iv) No audit or other examination of any Return of the Company or any of its Subsidiaries is
currently in progress, nor has the Company or any of its Subsidiaries received written notice of
any request for such an audit or other examination. Neither the Company nor any of its
Subsidiaries has received written notice of a proposed material adjustment by any Tax authority
relating to any Return filed by it. Each of the Company and its Subsidiaries has in its possession
copies of all Tax settlement agreements or similar reports issued by a Tax authority as a result of
an auditor examination for all periods since its inception.

               (v) Neither the Company nor any of its Subsidiaries is or has been at any time, a “United
States Real Property Holding Corporation” within the meaning of Section 897(c)(2) of the Code.

               (vi) Neither the Company nor any of its Subsidiaries is required to include any income or gain
in or exclude any deduction or loss from income for any tax period (or portion thereof) after the
Closing (A) as a result of a closing agreement (within the meaning of Section 7121 of the Code or
any comparable provision of applicable law) executed prior to the Closing or (B) under
Section 481(a) of the Code by reason of a voluntary change in accounting method initiated by, or
with respect to, the Company or a Subsidiary. The IRS has not proposed in writing any such
adjustment or change in accounting method.

               (vii) Neither the Company nor any of its Subsidiaries has any Liabilities for unpaid Taxes
which have not been accrued or reserved on the Company Financials in accordance with GAAP, and
neither the Company nor any of its Subsidiaries has incurred any Liability for Taxes since the date
of the Company Balance Sheet other than in the ordinary course of business.

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               (viii) Neither the Company nor any of its Subsidiaries has (a) ever been a member of an
affiliated group (within the meaning of Code §1504(a)) filing a consolidated U.S. federal income
Tax Return (other than a group the common parent of which was Company), (b) ever been a party to
any Tax sharing, indemnification or allocation agreement, or (c) any liability for the Taxes of any
Person (other than Company or any of its Subsidiaries), under Treasury Regulation § 1.1502 6 (or
any similar provision of state, local or non-U.S. law including any arrangement for group or
consortium Tax relief or similar arrangement), as a transferee or successor, by contract or
agreement, by operation of law, or otherwise.

               (ix) Neither the Company nor any of its Subsidiaries has constituted either a “distributing
corporation” or a “controlled corporation” in a distribution of stock intended to qualify for
tax-free treatment under Section 355 of the Code.

               (x) Neither the Company nor any of its Subsidiaries has participated in any listed transaction
within the meaning of Section 1.6011-4(b)(2) of the Treasury Regulations, or, to the knowledge of
the Company, in a reportable transaction under Treasury Regulations Section 1.6011-4(b).

               (xi) Neither the Company nor any of its Subsidiaries has received written notice from a
Governmental Entity in a jurisdiction where the Company or a Subsidiary, as applicable, does not
file Returns to the effect that the Company or the Subsidiary is or may be subject to taxation by
that jurisdiction.

               (xii) The Company and its Subsidiaries are and have been in compliance in all material
respects with all applicable transfer pricing laws and regulations, including the execution and
maintenance of contemporaneous documentation substantiating transfer pricing practices of the
Company and its Subsidiaries. The prices for any property or services (or for the use of any
property) provided by or to the Company or any of its Subsidiaries are arm’s-length prices for
purposes of the relevant transfer pricing laws, including Treasury Regulations promulgated under
Section 482 of the Code.

               (xiii) The Company and each of its Subsidiaries have complied in all material respects with
all applicable escheat or unclaimed property laws, and neither the Company nor any of its
Subsidiaries has any liabilities for the payment of any amounts as a result of the application of
such laws that have not been reserved for in accordance with GAAP on the Company Financials.

               (xiv) The Company has provided to Parent all documentation relating to, and each of the
Company and its Subsidiaries is in compliance in all material respects with, all terms and
conditions of any Tax exemption, Tax holiday or other Tax reduction agreement or order.

          (c) Loss of Executive Compensation Deduction. There is no Contract to which the Company or
any of its ERISA Affiliates is a party, including the provisions of this Agreement, covering any
Employee of the Company or any ERISA Affiliate, which, individually or collectively with other
payments the Company makes, that will give rise to the payment of any amount that would not be
deductible pursuant to Sections 404 or 162(m) of the Code.

          (d) Section 409A. Section 3.6(d) of the Company Disclosure Letter lists each Contract
between the Company or any ERISA Affiliate and any Employee that is a “nonqualified deferred
compensation plan” subject to Section 409A of the Code. Each such nonqualified deferred
compensation plan, if any, has been operated since January 1, 2005 in good faith compliance with
Section 409A of the Code. No deferred compensation plan existing prior to January 1, 2005, which
would otherwise be subject to Section 409A, has been “materially modified” at any time after
October 3, 2004. No stock right (as defined in

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U.S. Treasury Department regulation 1.409A-1(l)) has been granted to any Employee that (i) has
an exercise price that has been or may be less than the fair market value of the underlying equity
as of the date such option or right was granted, (ii) has any feature for the deferral of
compensation other than the deferral of recognition of income until the later of exercise or
disposition of such option or rights, or (iii) has been granted after December 31, 2004, with
respect to any class of stock that is not “service recipient stock” (within the meaning of
applicable regulations under Section 409A of the Code). No compensation shall be includable in the
gross income of any Employee as a result of the operation of Section 409A of the Code with respect
to any arrangements or agreements in effect as of the Effective Time. There is no Contract,
agreement, plan or arrangement to which the Company or any of its ERISA Affiliates is a party,
including the provisions of this Agreement, covering any Employee of the Company, which
individually or collectively could require the Company or any of its Affiliates to pay a tax gross
up payment to any Employee for Tax-related payments under Section 409A of the Code.

          (e) Section 280G. None of the Company or any of its ERISA Affiliates has made any payment to
any Employee and is not party to a Contract, agreement or arrangement with any Employee to make
payment, individually or considered collectively with any other Contracts, that will, or could
reasonably be expected to, be characterized as a “parachute payment” within the meaning of Section
280G(b)(1) of the Code or that could not be deductible under Section 280G of the Code. There is no
Contract by which the Company or any of its ERISA Affiliates is bound to compensate any Employee
for excise taxes paid pursuant to Section 4999 of the Code. Section 3.6(e) of the Company
Disclosure Letter lists all Employees reasonably believed to be “disqualified individuals” (within
the meaning of Section 280G of the Code) as determined as of the date hereof.

     3.7 Title to Properties. 

          (a) Properties. Neither the Company nor any of its Subsidiaries owns or has ever owned any
real property. Section 3.7(a) of the Company Disclosure Letter sets forth a list of all
real property currently leased, licensed or subleased by the Company or any of its Subsidiaries or
otherwise used or occupied by the Company or any of its Subsidiaries (the “Leased Real Property”),
the name of the lessor, licensor, sublessor, master lessor and/or lessee, the date of the lease,
license, sublease or other occupancy right and each amendment thereto. All such current leases are
in full force and effect, are valid and effective in accordance with their respective terms (except
as such enforceability may be subject to laws of general application relating to bankruptcy,
insolvency, and the relief of debtors and rules of law governing specific performance, injunctive
relief, or other equitable remedies), and there is not, under any of such leases, any existing
material default or event of default (or event which with notice or lapse of time, or both, would
constitute a material default) by the Company or any of its Subsidiaries, or to the knowledge of
the Company, by any other party thereto. The Company or its Subsidiaries currently occupy all of
the Leased Real Property for the operation of its business. To the knowledge of the Company, no
parties other than the Company or any of its Subsidiaries have a right to occupy any Leased Real
Property. To the knowledge of the Company, the Leased Real Property is in compliance, in all
material respects, with Legal Requirements. The Company and each of its Subsidiaries has performed
all of its material obligations under any material termination agreements pursuant to which it has
terminated any leases of real property that are no longer in effect and has no material continuing
Liability with respect to such terminated real property leases. The physical assets of the Company
and the Subsidiaries are, in all material respects, in good condition and repair, subject to normal
wear and tear.

          (b) Documents. The Company has made available to Parent correct and complete copies of all
leases, lease guaranties, agreements for the leasing, use or occupancy of, or otherwise granting a
right in

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or relating to the Leased Real Property, including all amendments, terminations and
modifications thereof (“Lease Documents”); and there are no other Lease Documents affecting the
Leased Real Property or to which the Company or any of its Subsidiaries is bound, other than those
identified in Section 3.7(b) of the Company Disclosure Letter.

          (c) Valid Title. Each of the Company and each of its Subsidiaries has good and valid title
to, or, in the case of leased properties and assets, valid leasehold interests in, all of its
material tangible properties and assets, real, personal and mixed, used or held for use in its
business, free and clear of any Liens except (i) as reflected in the Company Balance Sheet, or
(ii) Permitted Liens.

          (d) Customer Information. The Company and each of its Subsidiaries has sole and exclusive
ownership, free and clear of any Liens (other than Permitted Liens), of its internally maintained
customer lists and internally maintained customer licensing and purchasing histories relating to
its current and former customers.

     3.8 Intellectual Property. 

          (a) Registered Intellectual Property; Proceedings. Section 3.8(a) of the Company
Disclosure Letter (i) lists all Company Registered Intellectual Property and (ii) lists any
proceedings or actions before any court or tribunal (including the PTO or equivalent authority
anywhere in the world) in which any of the Company Registered Intellectual Property is involved.

          (b) Company Products. Section 3.8(b) of the Company Disclosure Letter sets forth a
list (by name and version number) of all Company Products currently sold or distributed by the
Company or any of its Subsidiaries or that have been sold or distributed by the Company or any of
its Subsidiaries in the past twenty-four (24) months.

          (c) Registration. Each item of Company Registered Intellectual Property is valid and
subsisting, and all necessary registration, maintenance and renewal fees in connection with such
Company Registered Intellectual Property have been paid and all necessary documents and
certificates in connection with such Company Registered Intellectual Property have been filed with
the relevant patent, copyright, trademark or other authorities in the United States or foreign
jurisdictions, as the case may be, for the purposes of prosecuting and maintaining such Company
Registered Intellectual Property.

          (d) Further Actions. There are no actions that must be taken by the Company or any of its
Subsidiaries within one hundred twenty (120) days of the date hereof, including the payment of any
registration, maintenance or renewal fees or the filing of any documents, applications or
certificates for the purposes of maintaining, perfecting or preserving or renewing any Company
Registered Intellectual Property.

          (e) Assignments and Recordation. In each case in which the Company or any of its Subsidiaries
has acquired or sought to acquire any ownership of material Intellectual Property Rights from any
Person, including as a result of engaging any Person to develop or create any Intellectual Property
or Intellectual Property Rights for Company or any of its Subsidiaries, the Company or such
Subsidiary, as the case may be, has obtained a valid and enforceable assignment sufficient to
irrevocably transfer all such Intellectual Property Rights (including the right to seek past and
future damages with respect thereto) to the Company or such Subsidiary, as the case may be, and, to
the maximum extent provided for by, and in accordance with, applicable laws and regulations, the
Company or such Subsidiary, as the case may be, has

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recorded each such assignment with the relevant
governmental authorities, including the PTO, the U.S. Copyright Office, or their respective
equivalents in any relevant foreign jurisdiction, as the case may be.

          (f) Transferability. All Company Intellectual Property will be fully transferable, alienable
or licensable by Surviving Corporation and/or Parent without restriction and without payment of any
kind to any third party.

          (g) Absence of Liens. Each item of Company Intellectual Property (including all Company
Registered Intellectual Property) and all Intellectual Property licensed to the Company or its
Subsidiaries, is free and clear of any Liens other than Permitted Liens. The Company has the sole
and exclusive right to bring a claim or suit against a third party for infringement,
misappropriation or violation of all material Company Intellectual Property.

          (h) Transfer. Since January 1, 2005, neither the Company nor any of its Subsidiaries has
(i) transferred ownership of, or granted any exclusive license of or exclusive right to use, or
authorized the retention of any exclusive rights to use or joint ownership of, any material
Intellectual Property Rights that are or were Company Intellectual Property, to any other Person or
(ii) permitted the Company’s or any of its Subsidiaries’ rights in such material Company
Intellectual Property to lapse or enter into the public domain.

          (i) Licenses-In. Other than (i) Shrink-Wrapped Code, (ii) Open Source as set forth in
Section 3.8(r) of the Company Disclosure Letter, (iii) non-disclosure agreements entered
into in the ordinary course of business, and (iv) licenses incidental to purchases of hardware,
Section 3.8(i) of the Company Disclosure Letter lists all licenses to which the Company or
any of its Subsidiaries is a party and under which the Company or any of its Subsidiaries has been
granted or provided any Intellectual Property Rights by a third party.

          (j) Licenses-Out. Other than (i) written non-disclosure agreements, (ii) licenses incidental
to the sale of hardware, and (iii) non-exclusive licenses and related agreements with respect
thereto (including software and maintenance and support agreements) of Company Products to
end-users (in each case, pursuant to written “shrink-wrap” or “click-through” agreements that have
been entered into in the ordinary course of business that do not materially differ in substance
from the Company’s standard form(s) which are included in Section 3.8(j)(i) of the Company
Disclosure Letter), Section 3.8(j)(ii) of the Company Disclosure Letter lists all licenses
and cross-license to which the Company or any of its Subsidiaries is a party and under which the
Company or any of its Subsidiaries has either generated more than $100,000 in revenue in a fiscal
quarter in any of the last three (3) fiscal years or has granted or provided any material
Intellectual Property Rights and/or Company Products to third parties.

          (k) No Default/No Conflict. All Contracts relating to either (i) material Company
Intellectual Property, or (ii) Intellectual Property Rights of a third Person licensed to the
Company or any of its Subsidiaries that is material to the business of the Company and its
Subsidiaries, are in full force and effect, and enforceable in accordance with their terms except
that such enforceability (a) may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting or relating to creditors’ rights generally, and (b) is
subject to general principles of equity. The consummation of the transactions contemplated by this
Agreement will neither violate nor by their terms result in the breach, modification, cancellation,
termination, suspension of, or acceleration of any payments with respect to, such Contracts. Each
of the Company and its Subsidiaries is in material compliance with, and has not materially breached
any term of any such Contracts and, to the knowledge of the Company, all other parties to such
Contracts are in compliance with, and have not materially breached any term of, such Contracts.
Following

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the Closing Date, the Surviving Corporation will be permitted to exercise all of the
Company’s and its Subsidiaries’ rights under such Contracts to the same extent the Company and its
Subsidiaries would have been able to had the transactions contemplated by this Agreement not
occurred and without the payment of
any additional amounts or consideration other than ongoing fees, royalties or payments which
the Company or any of its Subsidiaries would otherwise be required to pay.

          (l) No Infringement. The operation of the business of the Company and its Subsidiaries as it
is currently conducted or is contemplated to be conducted by the Company and its Subsidiaries,
including the design, development, use, import, branding, advertising, promotion, marketing,
manufacture and sale of any Company Product does not infringe or misappropriate and will not
infringe or misappropriate when conducted by Parent and/or Surviving Corporation following the
Closing, any valid Intellectual Property Rights of any Person, violate any material right of any
Person (including any right to privacy or publicity), or constitute unfair competition or trade
practices under the laws of any jurisdiction. No third party that has licensed Intellectual
Property or Intellectual Property Rights to the Company or any of its Subsidiaries has ownership
rights or license rights to improvements or derivative works made by the Company or any of its
Subsidiaries in such Intellectual Property that has been licensed to the Company or any of its
Subsidiaries.

          (m) Notice. Except as set forth in Section 3.8(m) of the Company Disclosure Letter,
neither the Company nor any of its Subsidiaries has received notice from any Person claiming that
any Company Product or Company Intellectual Property infringes or misappropriates any Intellectual
Property Rights of any Person or constitutes unfair competition or trade practices under the laws
of any jurisdiction (nor does the Company have knowledge of any basis therefor).

          (n) No Third Party Infringement. To the knowledge of the Company, no person has infringed or
misappropriated, or is infringing or misappropriating, any material Company Intellectual Property.

          (o) Transaction. Neither this Agreement nor the transactions contemplated by this Agreement,
including the assignment to Parent by operation of law or otherwise of any Contracts to which the
Company or any of its Subsidiaries is a party, will result in: (i) Parent, any of its subsidiaries
or the Surviving Corporation granting to any third party any right to or with respect to any
Intellectual Property Rights (other than those acquired as a result hereof) owned by, or licensed
to, any of them, (ii) Parent, any of its subsidiaries or the Surviving Corporation, being bound by,
or subject to, any non-compete or other material restriction on the operation or scope of their
respective businesses, or (iii) Parent, any of its subsidiaries or the Surviving Corporation being
obligated to pay any royalties or other material amounts, or offer any discounts, to any third
party in excess of those payable by, or required to be offered by, any of them, respectively, in
the absence of this Agreement or the transactions contemplated hereby. The Company is not party
to, subject to, or bound by any Contract that would give any third party any option, right of first
refusal or offer, right of negotiation or similar right with respect to the acquisition of the
Company, any Subsidiary or any of their respective assets, or the exclusive licensing of any
Company Intellectual Property.

          (p) Confidentiality and Security. Each of the Company and its Subsidiaries has taken
commercially reasonable steps to protect the security of the Company’s Intellectual Property and
the Company’s rights in confidential information and trade secrets of the Company and any of its
Subsidiaries or provided by any other Person to the Company or any of its Subsidiaries. Without
limiting the foregoing, each of the Company and its Subsidiaries has, and enforces, a policy
requiring each current and former employees, consultants and contractors engaged or likely to be
engaged in the creation of any material Intellectual Property Rights or Intellectual Property to
execute sufficient proprietary information and confidentiality

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agreements and all current and
former employees, consultants and contractors of the Company or any Subsidiary have executed such
agreements.

          (q) No Order. No Company Intellectual Property or Company Product is subject to any
proceeding or outstanding decree, order, judgment, settlement agreement, forbearance to sue,
consent, stipulation or similar obligation that restricts in any manner the use, transfer or
licensing thereof by the Company or any of its Subsidiaries or may affect the validity, use or
enforceability of such Company Intellectual Property or Company Product.

          (r) Open Source. Except as set forth in Section 3.8(r) of the Company Disclosure
Letter, no Company Product contains, includes or constitutes Open Source.

          (s) Source Code. With the exception of SELinux, neither the Company, any of its Subsidiaries,
nor any other Person acting on any of their behalf has disclosed, delivered or licensed to any
Person, agreed to disclose, deliver or license to any Person, or permitted the disclosure or
delivery to any escrow agent or other Person of, any Source Code that is Company Intellectual
Property. No event has occurred, and no circumstance or condition exists, that (with or without
notice or lapse of time, or both) will, or would reasonably be expected to, result in the
disclosure or delivery by the Company, any of its Subsidiaries or any Person acting on their behalf
to any Person of any Source Code that is Company Intellectual Property. Section 3.8(s) of
the Company Disclosure Letter identifies each Contract pursuant to which the Company has deposited,
or is or may be required to deposit, with an escrow agent or any other Person, any Source Code that
is Company Intellectual Property, and describes whether the execution of this Agreement or any of
the other transactions contemplated by this Agreement, could result in the release from escrow of
any Source Code that is Company Intellectual Property.

          (t) Government Funding. Except as shown in Section 3.8(t) of the Company Disclosure
Schedule, no government funding, facilities or resources of a university, college, other
educational institution or research center or funding from third parties was used in the
development of the Company Intellectual Property, and no Governmental Entity, university, college,
other educational institution or research center has any claim or right in or to the Company
Intellectual Property.

     3.9 Restrictions on Business Activities.  Neither the Company nor any of its Subsidiaries is a party to, and no asset or property of
the Company or any Subsidiary is bound or affected by, any judgment, injunction, order, decree or
Contract (non-compete or otherwise) that restricts, in any significant respect, or prohibits the
Company or any of its Subsidiaries from freely engaging in the Company’s business, from competing
anywhere in the world, or from making use of any material Intellectual Property or Intellectual
Property Rights (including any judgments, injunctions, orders, decrees or Contracts restricting the
geographic area in which the Company or any of its Subsidiaries may sell, license, market,
distribute or support any products or technology or provide services or restricting the markets,
customers or industries that the Company or any of its Subsidiaries may address in operating the
Company’s business, or restricting the prices which the Company or any of its Subsidiaries may
charge for its products, technology or services (including most favored customer pricing
provisions), or the acquisition by the Company or any of its Subsidiaries of any property or
assets), or includes any grants by the Company or any of its Subsidiaries of exclusive rights or
licenses, rights of refusal, rights of first negotiation or similar rights.

     3.10 Governmental Authorizations.  Each consent, license, permit, grant, approval or other authorization from a Governmental
Entity which is material to the operation of the Company’s or any of its Subsidiaries’ business as
currently
conducted (collectively, “Governmental Authorizations”) has been

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issued or granted to the
Company or any of its Subsidiaries, as the case may be. The Governmental Authorizations are in
full force and effect. As of the date hereof, no suspension or cancellation of any of the
Governmental Authorizations is pending or, to the knowledge of the Company, threatened, except for
such suspensions or cancellations that would not, individually or in the aggregate, be material to
the Company and its Subsidiaries, taken as a whole. Neither the Company nor any of its
Subsidiaries has received any written notice or other written communication from any Governmental
Entity regarding any actual or possible violation of any Legal Requirement or any Governmental
Authorization. The Company and its Subsidiaries are in compliance in all material respects with
the terms of the Governmental Authorizations.

     3.11 Litigation.  There is no action, suit, claim, audit or proceeding of any nature pending or, to the
knowledge of the Company, threatened against the Company, any of its Subsidiaries, any of their
respective properties (tangible or intangible), or any of their respective officers or directors
(in their respective capacities as such) that (i) involves or alleges an amount in controversy in
excess of $200,000, (ii) seeks injunctive relief, or (iii) seeks to impose any legal restraint on
or prohibition against or limit the Surviving Corporation’s ability to operate the business of the
Company and its Subsidiaries as it was operated immediately prior to the date of this Agreement.
There is no investigation or other proceeding pending or, to the knowledge of the Company,
threatened against the Company, any of its Subsidiaries, any of their respective properties
(tangible or intangible), or any of their respective officers or directors by or before any
Governmental Entity, in each case, that any adverse findings pursuant to which would reasonably be
expected to be, individually or in the aggregate, material to the Company and its Subsidiaries,
taken as a whole. There has not been since January 1, 2005, nor are there currently, any internal
investigations or inquiries being conducted by the Company, the Company’s Board of Directors (or
any committee thereof) or any third party at the request of the Company or the Company’s Board of
Directors (or any committee thereof) concerning any financial, accounting, tax, conflict of
interest, illegal activity, fraudulent or deceptive conduct or other misfeasance or malfeasance
issues.

     3.12 Compliance with Laws. 

          (a) Compliance. Neither the Company nor any of its Subsidiaries is in violation, in any
material respect, or default of any Legal Requirements applicable to the Company or any of its
Subsidiaries or by which the Company or any of its Subsidiaries or any of their respective
properties is bound or affected.

          (b) Export and Import Control Laws. The Company and each of its Subsidiaries has at all times
conducted its export and import transactions in accordance, in all material respects, with all
applicable Export and Import Control Laws. Without limiting the foregoing:

               (i) the Company and each of its Subsidiaries has obtained and is in compliance, in all
material respects, with the terms of all applicable Export and Import Approvals;

               (ii) there are no pending or, to the Company’s knowledge, threatened claims, charges,
investigations, violations, settlements, civil or criminal enforcement actions, lawsuits, or other
court actions against the Company or any Subsidiary with respect to such Export and Import
Approvals;

               (iii) to the Company’s knowledge, there are no actions, conditions or circumstances pertaining
to the Company’s or any Subsidiary’s export or import transactions that would reasonably be
expected to give rise to any future claims, charges, investigations, violations, settlements, civil
or criminal actions, lawsuits, or other court actions under the Export and Import Control Laws;

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               (iv) the Company has established and maintains a compliance program and reasonable internal
controls and procedures appropriate to the requirements of Export and Import Control Laws; and

               (v) Section 3.12(b)(vi) of the Company Disclosure Letter sets forth the true,
complete, and correct export control classifications, Harmonized Tariff Schedule Codes, and
Schedule B Codes applicable to the Company’s products, services, software, and technologies.

          (c) Anti-Corruption and Anti-Bribery Laws.

               (i) Neither the Company nor any of its Subsidiaries (including any of their officers,
directors, agents, distributors, employees or other Person associated with or acting on their
behalf) has, directly or indirectly, used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity, made any unlawful payment
to foreign or domestic government officials or employees or made any bribe, rebate, payoff,
influence payment, kickback or other similar unlawful payment, or taken any action which would
cause it to be in violation of taken any action which would cause it to be in violation of any
Anti-Corruption or Anti-Bribery Laws.

               (ii) There are no pending or, to the Company’s knowledge, threatened claims, charges,
investigations, violations, settlements, civil or criminal enforcement actions, lawsuits, or other
court actions against the Company with respect to any Anti-Corruption and Anti-Bribery Laws.

               (iii) To the Company’s knowledge, there are no actions, conditions or circumstances pertaining
to the Company’s activities that may give rise to any future claims, charges, investigations,
violations, settlements, civil or criminal actions, lawsuits, or other court actions under any
Anti-Corruption and Anti-Bribery Laws.

               (iv) The Company has established and maintains a compliance program and reasonable internal
controls and procedures appropriate to the requirements of Anti-Corruption and Anti-Bribery Laws.

          (d) NASDAQ. The Company is in compliance with the applicable criteria for continued listing
of the Company Common Stock on the NASDAQ Global Select Market, including all applicable corporate
governance rules and regulations.

          (e) Certifications. The Company has sought and received:

               (i) for all Company Products sold or distributed in the United States that are eligible to
receive approval and certification with respect to safety or electromagnetic compatibility
compliance, or both, the approval and certification (A) as to safety by Underwriters Laboratories
(or equivalent certifying organization), and/or (B) as to electromagnetic compatibility compliance
by the United States Federal Communications Commission; and

               (ii) for all Company Products sold or distributed outside the United States that are eligible
to receive approval and certification with respect to safety or electromagnetic compatibility
compliance, or both, the approval and certification (A) as to safety and electromagnetic
compatibility compliance by (1) the appropriate Governmental Entity of the European Union (or any
of its member States), and/or (2) an internationally recognized certifying organization.

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     3.13 Environmental Matters. 

          (a) Hazardous Material. Except as would not be reasonably likely to result in a material
Liability to the Company and its Subsidiaries, taken as a whole, neither the Company nor any of its
Subsidiaries has: (i) operated any underground storage tanks at any property that the Company or
any of its Subsidiaries has at any time owned, operated, occupied or leased, or (ii) released any
amount of any substance that has been designated by any Governmental Entity or by applicable
foreign, federal, state or local law to be radioactive, toxic, hazardous or otherwise a danger to
health or the environment, including, without limitation, PCBs, asbestos, petroleum, toxic mold,
urea-formaldehyde and all substances listed as hazardous substances pursuant to the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended, or defined as a
hazardous waste pursuant to the United States Resource Conservation and Recovery Act of 1976, as
amended, and the regulations promulgated pursuant to said laws, but excluding office and janitorial
supplies properly and safely maintained, (a “Hazardous Material”), but excluding office and
janitorial supplies properly and safely maintained. Except as would not be reasonably likely to
result in material liability to the Company and its Subsidiaries, taken as a whole, no Hazardous
Materials are present, as a result of the actions of the Company or any of its Subsidiaries or any
affiliate of the Company, or, to the Company’s knowledge, as a result of any actions of any third
party or otherwise, in, on or under any property, including the land and the improvements, ground
water and surface water thereof, that the Company or any of its Subsidiaries has at any time owned,
operated, occupied or leased. Neither the Company nor any of its Subsidiaries currently sells
(i) any products containing Hazardous Materials that will be banned or restricted by the
Restrictions on the Use of Certain Hazardous Substances in Electrical and Electronic Equipment
(2002/95/EC) directive (“RoHS”) or (ii) any products for which it is required to pay a waste fee
under California law. To the knowledge of the Company, there are no facts or circumstances likely
to prevent or delay the ability of the Company or any of its Subsidiaries to comply, when required,
with RoHS and the Waste Electrical and Electronic Equipment Directive (2002/96/EC).

          (b) Hazardous Materials Activities. Neither the Company nor any of its Subsidiaries has
transported, stored, used, recycled, manufactured, disposed of, released, removed or exposed its
Employees or others to Hazardous Materials or manufactured or distributed for sale any product
containing a Hazardous Material (collectively “Hazardous Materials Activities”) in violation in any
material respect of any environmental Legal Requirement or in a manner which would reasonably be
expected to result in material Liability to the Company and its Subsidiaries, taken as a whole.

          (c) Permits. The Company and its Subsidiaries currently hold all Permits necessary for the
conduct of their Hazardous Material Activities and other businesses of each of the Company and each
of its Subsidiaries as such activities and businesses are currently being conducted (the “Company
Environmental Permits”), except for Permits, the absence of which could reasonably be expected to
result in a material Liability to the Company or any of its Subsidiaries.

          (d) Environmental Liabilities. No action, proceeding, revocation proceeding, amendment
procedure, writ, injunction or claim is pending, or to the Company’s knowledge threatened against
the Company or any of its Subsidiaries concerning any Company Environmental Permit, Hazardous
Material or any Hazardous Materials Activity of the Company or any of its Subsidiaries. The
Company is not aware of any fact or circumstance, which would, individually or in the aggregate,
reasonably be expected to result in any material environmental Liability to the Company and its
Subsidiaries, taken as a whole. Except as would not be reasonably likely to result in a material
liability to the Company or any of its Subsidiaries, neither the Company nor any of its
Subsidiaries have entered into any agreement that may require it to guarantee, reimburse, pledge,
defend, hold harmless or indemnify any other Person with respect to liabilities

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arising out of the
Hazardous Materials Activities or environmental liabilities of the Company, any of its Subsidiaries
or of any other Person.

     3.14 Brokers’ and Finders’ Fees; Fees and Expenses.  Except for fees payable to the Company Financial Advisor as set forth in engagement letter
between the Company and the Company Financial Advisor, dated September 9, 2008 (the “Engagement
Letter”), a true, correct and complete version of which has been made available by the Company to
Parent, neither the Company nor any affiliate of the Company is obligated for the payment of any
fees or expenses of any investment banker, broker, adviser or similar party in connection with the
origin, negotiation or execution of this Agreement or in connection with the Merger or any other
transaction contemplated by this Agreement, and Parent will not incur any liability, either
directly or indirectly, to any such investment banker, broker, adviser or similar party as a result
of this Agreement, the Merger or any act or omission of the Company, any of its affiliates or any
of their respective directors, officers, employees, stockholders or agents. A good faith estimate,
as of the date hereof, of the fees and expenses of any financial adviser and legal counsel retained
by the Company expected to be incurred by the Company or any of its Subsidiaries in connection with
the negotiation and effectuation of the terms and conditions of this Agreement and the transactions
contemplated hereby (such estimate of fees and expenses to be provided for the period through and
including the consummation of the transactions contemplated hereby), including the fees and
expenses payable pursuant to the Engagement Letter, is set forth on Section 3.14 of the
Company Disclosure Letter.

     3.15 Transactions with Affiliates.  Except as set forth in the Company SEC Reports, since the date of the Company’s last proxy
statement filed with the SEC, no event has occurred as of the date hereof that would be required to
be reported by the Company pursuant to Item 404 of Regulation S-K promulgated by the SEC.

     3.16 Employee Benefit Plans and Compensation. 

          (a) Schedule. Section 3.16(a)(i) of the Company Disclosure Letter contains an
accurate and complete list of each Company Employee Plan and each Employee Agreement.

          (b) Documents. The Company and each ERISA Affiliate has made available to Parent (i) correct
and complete copies of all documents embodying each Company Employee Plan and each Employee
Agreement including, without limitation, all amendments thereto and all related trust documents,
(ii) the three most recent annual reports (Form Series 5500 and all schedules, audit reports and
financial statements attached thereto), if any, required under ERISA or the Code in connection with
each Company
Employee Plan, (iii) if the Company Employee Plan is funded, the most recent annual and
periodic accounting of Company Employee Plan assets, (iv) the most recent summary plan description
together with the summary(ies) of material modifications thereto, if any, required under ERISA with
respect to each Company Employee Plan, (v) all material written agreements and contracts relating
to each Company Employee Plan, including administrative service agreements and group insurance
contracts, (vi) all communications material to any Employee or Employees relating to any Company
Employee Plan and any proposed Company Employee Plan, in each case, relating to any amendments,
terminations, establishments, increases or decreases in benefits, acceleration of payments or
vesting schedules or other events which would result in any liability to the Company or any of its
Subsidiaries, (vii) all material correspondence to or from any governmental agency relating to any
Company Employee Plan, (viii) all model COBRA forms and related notices, (ix) all policies
pertaining to fiduciary liability insurance covering the fiduciaries for each Company Employee
Plan, (x) all nondiscrimination tests and related reports and summaries for each Company Employee
Plan for the three most recent plan years, (xi) all registration statements, annual reports

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(Form 11-K and all attachments thereto) and prospectuses prepared in connection with each Company
Employee Plan, (xii) all HIPAA privacy notices and all business associate agreements to the extent
required under HIPAA, (xiii) all form notices to Medicare-eligible participants under Part D of the
Medicare Prescription Drug, Improvement and Modernization Act of 2003 (“Medicare Part D”), and
(xiv) all IRS determination or opinion letters, as applicable, issued with respect to each Company
Employee Plan.

          (c) Employee Plan Compliance.

               (i) The Company and each ERISA Affiliate has performed all material obligations required to be
performed by them under, is not in default or violation in any material respect of, and the Company
and each of its Subsidiaries has no knowledge of any material default or violation by any other
party to, any Company Employee Plan, and each Company Employee Plan has been registered,
established and maintained in all material respects in accordance with its terms and in material
compliance with all applicable Legal Requirements, including, but not limited to, ERISA or the
Code.

               (ii) Any Company Employee Plan intended to be qualified under Section 401(a) of the Code and
each trust intended to qualify under Section 501(a) of the Code (A) has either applied for, prior
to the expiration of the requisite period under applicable Treasury Regulations or IRS
pronouncements, or obtained a favorable determination, notification, advisory and/or opinion
letter, as applicable, as to its qualified status from the IRS or still has a remaining period of
time under applicable Treasury Regulations or IRS pronouncements in which to apply for such letter
and to make any amendments necessary to obtain a favorable determination, and (B) incorporates or
has been amended to incorporate all provisions required to comply with the Tax Reform Act of 1986
and subsequent legislation.

               (iii) No “prohibited transaction,” within the meaning of Section 4975 of the Code or
Sections 406 and 407 of ERISA, and not otherwise exempt under Section 408 of ERISA, has occurred
with respect to any Company Employee Plan.

               (iv) There are no actions, suits or claims pending or, to the knowledge of the Company,
threatened or reasonably anticipated (other than routine claims for benefits under fully insured
Company Employee Plans) against any Company Employee Plan or against the assets of any Company
Employee Plan.

               (v) Each Company Employee Plan can be amended, terminated or otherwise discontinued after the
Effective Time in accordance with its terms, without any Liability to Parent, the Company or any
ERISA Affiliate (other than ordinary administration expenses).

               (vi) There are no audits, inquiries or proceedings pending or to the knowledge of the Company,
threatened by the IRS, DOL, or any other Governmental Entity with respect to any Company Employee
Plan. Neither the Company nor any ERISA Affiliate is subject to any penalty or Tax with respect to
any Company Employee Plan under Section 502(i) of ERISA or Sections 4975 through 4980 of the Code.

               (vii) The Company and each ERISA Affiliate have timely made all contributions and other
payments required by and due under the terms of each Company Employee Plan.

          (d) No Pension Plan. Neither the Company nor any current or former ERISA Affiliate has ever
maintained, established, sponsored, participated in, or contributed to (i) any Pension Plan subject
to Part 3 of Subtitle B of Title I of ERISA, Title IV of ERISA or Section 412 of the Code, or
(ii) or any

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International Employee Plan that is not account-based with individual participant
accounts, and that is designed to accumulate or accrue a benefit, annuity payment or a cash balance
that a service provider of the Company could draw upon at a specific age, retirement or following
separation from service.

          (e) No Self-Insured Plan. Except as set forth in Section 3.15(e) of the Company
Disclosure Letter, neither the Company nor any ERISA Affiliate has ever maintained, established,
sponsored, participated in or contributed to any self-insured plan that provides benefits to
employees (including any such plan pursuant to which a stop-loss policy or contract applies).

          (f) No VEBA; MEWA. Neither the Company nor any ERISA Affiliate has ever maintained,
established, sponsored, participated in or contributed to (i) any “funded welfare plan” within the
meaning of Section 419 of the Code, nor (ii) any multiple employer welfare arrangement, as defined
under Section 3(40)(A) of ERISA (without regard to Section 514(b)(6)(B) of ERISA), established or
maintained for the purpose of offering or providing welfare plan benefits to the employees of two
or more employers (including one or more self-employed individuals), or to their beneficiaries.

          (g) Collectively Bargained, Multiemployer and Multiple-Employer Plan. At no time has the
Company or any ERISA Affiliate contributed to or been obligated to contribute to any multiemployer
plan (as defined in Section 3(37) of ERISA). Neither the Company nor any ERISA Affiliate has at
any time ever maintained, established, sponsored, participated in or contributed to any multiple
employer plan or any plan described in Section 413 of the Code.

          (h) No Post-Employment Obligations. No Company Employee Plan or Employee Agreement provides,
or reflects or represents any liability to provide, post-termination or retiree life insurance,
health or other employee welfare benefits to any Person for any reason, except as may be required
by COBRA or other applicable statute, and neither the Company nor any ERISA Affiliate has ever
represented, promised or contracted (whether in oral or written form) to any Employee (either
individually or to Employees as a group) or any other Person that such Employee(s) or other Person
would be provided with post-termination or retiree life insurance, health or other employee welfare
benefits, except to the extent required by COBRA or other applicable statute.

          (i) Effect of Transaction. Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby (either alone or in connection with any other
event,
contingent or otherwise) or any termination of employment or service in connection therewith
will (i) result in any payment (including severance, golden parachute, bonus or otherwise),
becoming due to any Employee, (ii) result in any forgiveness of indebtedness, (iii) materially
increase any benefits otherwise payable by the Company or any ERISA Affiliate or (iv) result in the
acceleration of the time of payment or vesting of any such benefits (including with regard to
Company Options), except as required under Section 411(d)(3) of the Code.

          (j) Employment Matters. The Company and each of its Subsidiaries is in compliance in all
material respects with all applicable foreign, federal, state and local Legal Requirements
respecting employment, employment practices, terms and conditions of employment, worker
classification, tax withholding, prohibited discrimination, equal employment, fair employment
practices, meal and rest periods, immigration status, employee safety and health, wages (including
overtime wages), compensation, and hours of work, and in each case, with respect to Employees:
(i) has withheld and reported all amounts required by law or by agreement to be withheld and
reported with respect to wages, salaries and other payments to Employees, (ii) is not liable for
any arrears of wages, severance pay or any Taxes or any penalty for failure to

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comply with any of
the foregoing, and (iii) is not liable for any payment to any trust or other fund governed by or
maintained by or on behalf of any governmental authority, with respect to unemployment compensation
benefits, social security or other benefits or obligations for Employees (other than routine
payments to be made in the normal course of business and consistent with past practice). There are
no actions, suits, claims or administrative matters pending, threatened or reasonably anticipated
against the Company, any of its Subsidiaries, or any of their Employees relating to any Employee,
Employee Agreement or Company Employee Plan. There are no pending or threatened or reasonably
anticipated claims or actions against Company, any of its Subsidiaries, any Company trustee or any
trustee of any Subsidiary under any worker’s compensation policy or long-term disability policy.
Neither the Company or and Subsidiary is party to a conciliation agreement, consent decree or other
agreement or order with any federal, state, or local agency or governmental authority with respect
to employment practices. The services provided by each of the Company’s, each Subsidiary’s and
their ERISA Affiliates’ Employees are terminable at the will of the Company and its ERISA
Affiliates and any such termination would result in no Liability to the Company or any ERISA
Affiliate. Section 3.16(j) of the Company Disclosure Letter lists all liabilities of the
Company to any Employee, that result from the termination by the Company, Parent or any of its
Subsidiaries of such Employee’s employment or provision of services, a change of control of the
Company, or a combination thereof. Neither the Company nor any of its Subsidiaries has any
material Liability with respect to any misclassification of: (i) any Person as an independent
contractor rather than as an employee, (ii) any employee leased from another employer, or (iii) any
employee currently or formerly classified as exempt from overtime wages.

          (k) Labor; WARN. No strike, labor dispute, slowdown, concerted refusal to work overtime, or
work stoppage against the Company or any of its Subsidiaries is pending, or to the knowledge of the
Company, threatened or reasonably anticipated. The Company has no knowledge of any activities or
proceedings of any labor union to organize any Employees. There are no actions, suits, claims,
labor disputes or grievances pending or threatened or reasonably anticipated relating to any labor
matters involving any Employee, including charges of unfair labor practices. Neither the Company
nor any of its Subsidiaries has engaged in any unfair labor practices within the meaning of the
National Labor Relations Act. Neither the Company nor any of its Subsidiaries is presently, nor
has it been in the past, a party to, or bound by, any collective bargaining agreement or union
contract with respect to Employees and no collective bargaining agreement is being negotiated by
the Company or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries is a party
to, bound by or subject to any labor-related agreement or arrangement with any foreign works
council or similar labor body. The consummation of the Merger and the other transactions
contemplated by this Agreement will not entitle any third party (including any works council,
labor union or similar labor organization) to any payments under any collective bargaining
agreement or any labor agreement or require the Company or any of its Subsidiaries to consult with
any union, works council or similar labor relations body. Neither the Company nor and Subsidiary
has taken any action which would constitute a “plant closing” or “mass layoff” within the meaning
of WARN or similar state or local law, issued any notification of a plant closing or mass layoff
required by WARN or similar state or local law, or incurred any liability or obligation under WARN
or any similar state or local law that remains unsatisfied. No terminations prior to the Closing
would trigger any notice or other obligations under WARN or similar state or local law.

          (l) International Employee Plan. Each International Employee Plan has been established,
maintained and administered in material compliance with its terms and conditions and with the
requirements prescribed by any and all statutory or regulatory Legal Requirements that are
applicable to such International Employee Plan. No International Employee Plan has unfunded
Liabilities, that as of the Effective Time, will not be offset by insurance or fully accrued.
Except as required by law, no condition

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exists that would prevent the Company, the Surviving
Corporation or Parent from terminating or amending any International Employee Plan at any time for
any reason.

     3.17 Contracts. 

          (a) Material Contracts. For purposes of this Agreement, “Company Material Contract” shall
mean any of the following to which the Company or any of its Subsidiaries is a party or by which
any of their assets are bound:

               (i) any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of
the SEC) with respect to the Company and its Subsidiaries;

               (ii) any Employee Agreement with any officer of the Company or any Employee of the Company
earning an annual base salary in excess of $225,000, or any Employee Agreement with any member of
the Company’s Board of Directors, or any Employee Agreement granting any change of control,
severance or termination pay (in cash or equity or otherwise), or any agreement the benefits of
which are contingent or the terms of which are materially altered upon the occurrence of a
transaction involving the Company of the nature contemplated hereby (either alone or upon the
occurrence of additional or subsequent events);

               (iii) any Contract or plan, including, without limitation, any stock option plan, stock
appreciation rights plan or stock purchase plan, or any plan providing similar equity awards, for
which any benefits will be increased, or for which the vesting of benefits will be accelerated, by
the occurrence of any of the transactions contemplated by this Agreement (either alone or upon the
occurrence of additional or subsequent events), or for which the value of any of the benefits of
which will be calculated on the basis of any of the transactions contemplated by this Agreement
(either alone or upon the occurrence of additional or subsequent events);

               (iv) any Contract relating to the sale, issuance, grant, exercise, award, purchase, repurchase
or redemption of any shares of its capital stock or other securities or any options, warrants or
other rights to purchase or otherwise acquire any shares of capital stock, other securities or
options, warrants or
other rights therefor, except for those Contracts conforming to the standard agreement under a
Company Stock Plan;

               (v) any agreement of indemnification or any guaranty (other than any agreement of
indemnification entered into in connection with the sale or license of Company Products in the
ordinary course of business pursuant to its standard customer agreement, the form of which has been
made available to Parent, or pursuant to substantially similar agreements);

               (vi) any Contract required to be disclosed under Section 3.9, any Contract granting any
exclusive distribution rights, or any Contract with a Significant Customer providing “most favored
nations” or other preferential pricing terms for Company Products;

               (vii) any Contract relating to the disposition or acquisition, after the date of this
Agreement, by the Company or any of its Subsidiaries of a material amount of assets or any material
ownership interest in any other Person or business unit or enterprise;

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               (viii) (A) any Contract between the Company or any of its Subsidiaries and (1) any Significant
Customer, (2) any Significant Supplier, (B) any Company Government Contract or Company Government
Subcontract, and (C) any material Contract with any dealer, distributor, OEM (original equipment
manufacturer), reseller, sales representative, or developer (the “Business Partners”) under which
the Company or any of its Subsidiaries have continuing material obligations to jointly market any
product, technology or service, or any material agreement pursuant to which the Company or any of
its Subsidiaries have continuing material obligations to jointly develop any Intellectual Property
or Intellectual Property Rights that will not be owned, in whole or in part, by the Company or any
of its Subsidiaries (other than Contracts entered into by the Company on the Company’s standard
form of agreement for Business Partners;

               (ix) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or
other Contracts relating to the borrowing of money or extension of credit, in each case in excess
of $300,000, other than accounts receivables and payables arising or incurred in the ordinary
course of business;

               (x) any material Lease Document;

               (xi) any material settlement agreement entered into within five (5) years prior to the date of
this Agreement, any litigation “standstill” agreement, or any tolling agreement;

               (xii) any Contract providing for payments (whether fixed, contingent or otherwise) by or to it
in an aggregate amount of $300,000 or more annually;

               (xiii) any Contract providing for the development of any material software, content (including
textual content and visual, photographic or graphics content) or Intellectual Property for (or for
the benefit or use of) it, or providing for the purchase by or license to (or for the benefit or
use of) it of any software, content (including textual content and visual, photographic or graphics
content) or Intellectual Property, which software, content or Intellectual Property is in any
manner used or incorporated (or is contemplated by it to be used or incorporated) in connection
with any aspect or element of any product, service or technology of it (other than software
generally available to the public at a per copy license fee of less than $10,000 per copy);

               (xiv) (A) any joint venture or partnership Contract that has involved, or is reasonably
expected to involve, a sharing of revenues, profits, cash flows, expenses or losses with any other
party or a payment of royalties to any other party, or (B) any Contract relating to the membership
of, or participation by it in, or the affiliation of it with, any industry standards group or
association that materially affects or may affect the Company’s Intellectual Property;

               (xv) any Contract with any works council or labor union, or any collective bargaining
agreement or similar Contract;

               (xvi) any Contract under which the Company’s entering into this Agreement or the consummation
of the Merger or the transactions contemplated thereby shall give rise to, or trigger the
application of, any rights of any third party or any obligations of the Company or any Company
Subsidiary that would come into effect upon the consummation of the Merger; or

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               (xvii) any other Contract the termination or breach of which would be reasonably expected to
have a Material Adverse Effect on the Company and is not disclosed pursuant to clauses (i) through
(xvi) above.

          (b) Schedule. Section 3.17(b) of the Company Disclosure Letter sets forth a list of
all Company Material Contracts and the subsections of Section 3.17(a) applicable to such
Company Material Contract. A true and complete copy of each Company Material Contract has been
made available to Parent. All Company Material Contracts are in written form and have been duly
executed by the parties thereto, and, to the Company’s knowledge, any other party or parties
thereto.

          (c) No Breach. The Company or the applicable Subsidiary has performed all of the material
obligations required to be performed by it under each Company Material Contract. Each of the
Company Material Contracts is in full force and effect. There exists no default or event of
default or event, occurrence, condition or act, with respect to the Company or any of its
Subsidiaries, or to the knowledge of the Company, with respect to any other contracting party,
which, with the giving of notice, the lapse of time or the happening of any other event or
conditions, would reasonably be expected to (i) become a default or event of default under any
Company Material Contract, or (ii) give any third party (A) the right to declare a default or
exercise any remedy under any Company Material Contract, or (B) the right to cancel, terminate or
modify any Company Material Contract. Neither the Company nor any of its Subsidiaries has received
any written notice regarding (x) any breach of or default under, or (y) any intention to cancel or
modify, any Company Material Contract.

          (d) Government Contracts.

               (i) With respect to each Bid, Company Government Contract, and Company Government Subcontract:

                    (A) each such Company Government Contract or Company Government Subcontract, to the knowledge
of the Company, was legally awarded;

                    (B) to the knowledge of the Company, no reasonable basis exists to give rise to (1) a claim
for fraud, or (2) any claim under the United States False Claims Act, the United States Procurement
Integrity Act, or the United States Truth in Negotiations Act and neither the United States
government nor any prime contractor, subcontractor or other Person has notified the Company that
the
Company or any of its Subsidiaries has, or may have, breached or violated in any respect any
law, certification, representation, clause, provision or requirement pertaining to such Company
Government Contract or Company Government Subcontract; and

                    (C) neither the Company nor any of its Subsidiaries has received written notice from any
Governmental Entity, prime contractor, subcontractor, or other third party of any outstanding
claims against the Company or any of its Subsidiaries, requests for equitable adjustment,
notification of disputes under the United States Contract Disputes Act, as amended, or any other
law, notice of termination for convenience, notice of termination for default, cure notice, or show
cause notice and the Company has no knowledge of any basis for any such notice and no cost incurred
by the Company or any of its Subsidiaries or payment due pertaining to such Company Government
Contract or Company Government Subcontract has been questioned or challenged, is the subject of any
audit, has been withheld or set off, or, to the knowledge of the Company, investigated or has been
disallowed by any Government Entity, and the Company or its Subsidiaries is entitled to all
progress or other payments received to date with respect thereto.

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               (ii) To the knowledge of the Company, facts set forth or acknowledged by any representations,
claims or certifications submitted by or on behalf of the Company or any Subsidiary in connection
with such Company Government Contract or Company Government Subcontract were current, accurate and
complete in all material respects on the date of submission and the Company or any of its
Subsidiaries has not, in connection with any Bid, Company Government Contract, or Company
Government Subcontract, received any adverse or negative past performance evaluations or ratings.

               (iii) None of the Company or its Subsidiaries, nor, to the knowledge of the Company, any of
their respective directors, officers, employees, consultants or agents, is, or has been (A) under
any administrative, civil or criminal investigation, audit, indictment or information by any
Governmental Entity, by the Company or any of its Subsidiaries, in each case, with respect to any
alleged violation of law or Contract arising under or relating to any Company Government Contract
or Company Government Subcontract, or (B) debarred or suspended, or proposed for debarment or
suspension, or received notice of actual or proposed debarment or suspension; and to the knowledge
of the Company, there exist no facts or circumstances that would warrant the institution of
suspension or debarment proceedings or a finding of nonresponsibility or ineligibility with respect
to the Company or any of its Subsidiaries, or any of their respective directors, officers or
managers, in any such case, for purposes of doing business with any Governmental Entity.

               (iv) Neither the Company nor any of its Subsidiaries has any interest in any pending claim
against any Governmental Entity, prime contractor, subcontractor, vendor, or other Person in each
case arising under or relating to any Company Government Contract or Company Government Subcontract
and, to the Company’s knowledge, there are no actions, conditions, or circumstances pertaining to
the Company’s or its Subsidiaries’ activities that (A) may give rise to any future claims, charges,
investigations, violations, settlements, civil or criminal actions, lawsuits, or other court
actions, or (B) that would prevent the Company from continuing to perform or obtaining any new Bid,
Company Government Contract, or Company Government Subcontract.

               (v) The Company has complied with all Legal Requirements relating to the safeguarding of, and
access to, classified information and neither the Company nor any of its Subsidiaries, nor, to the
Company’s knowledge, any of their respective directors, officers, employees, consultants or agents,
is, or has, engaged in conduct that violated any laws, regulations, orders, or rules governing the
use, disclosure, or safeguarding of materials or information that has been classified or otherwise
controlled by any
Governmental Entity, and the Company has no knowledge of any facts that are reasonably likely
to give rise to the revocation of any security clearance of the Company or its Subsidiaries, or any
of their respective employees.

               (vi) The Company has established and maintains a compliance program and reasonable internal
controls and procedures appropriate to the requirements of state or federal laws of the United
States applicable to companies engaged in contracts with or involving and Governmental Entity.

     3.18 Insurance.  The Company has made available to Parent correct and accurate copies of all insurance
policies and fidelity bonds material to the business of the Company and each ERISA Affiliate.
There is no material claim by the Company or any ERISA Affiliate pending under any of the insurance
policies and fidelity bonds covering the assets, business, equipment, properties, operations,
employees, officers and directors of the Company and its Subsidiaries as to which coverage has been
questioned, denied or disputed by the underwriters of such policies or bonds.

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     3.19 Information Supplied.  None of the information supplied or to be supplied by or on behalf of the Company for
inclusion or incorporation by reference in the Proxy Statement will, on each relevant filing date,
on the date of mailing to the Company’s stockholders and at the time of the Company Stockholders’
Meeting, contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they are made, not misleading. The Proxy Statement will comply as to
form in all material respects with the provisions of the Exchange Act and the rules and regulations
promulgated by the SEC thereunder. Notwithstanding the foregoing, the Company makes no
representation or warranty with respect to any information supplied by Parent or Merger Sub for
inclusion or incorporation by reference in the Proxy Statement.

     3.20 Fairness Opinion.  The Company’s Board of Directors has received an opinion from the Company Financial
Advisor, a copy of which will be made available to Parent, that, as of the date of such fairness
opinion, the Merger Consideration is fair to the Company’s stockholders from a financial point of
view (the “Fairness Opinion”).

     3.21 Corporate Documents.  The Company has made available to Parent for examination all documents and information
listed in the Company Disclosure Letter, including the following: (a) the minute books containing
all records of all proceedings, consents, actions and meetings of the Board of Directors and any
committees thereof and stockholders of the Company from and after July 1, 2005, other than the
meetings of the Company’s Board of Directors held on August 26, 2008, September 3, 2008, September
13, 2008, and September 21, 2008 (for which minutes have not been approved by the Company’s Board
of Directors); and (b) the stock ledger, option ledger and warrant ledger and journal reflecting
all stock issuances and transfers and all grants of outstanding Company Options, Company Warrants,
Company RSUs and Company Unvested Common Stock. The minutes of the Company’s Board of Directors
and committees thereof made available to Parent contain a complete and accurate summary of all
meetings of directors or actions by written consent from July 1, 2005 through the date thereof.

     3.22 Customers and Suppliers

          (a) Customers. Neither the Company nor any of its Subsidiaries has any outstanding material
disputes concerning its products and/or services with any customer, reseller or distributor who, in
the six (6) fiscal quarters ended June 30, 2008, was one of the twenty-five (25) largest sources of
revenues for the Company and the Company Subsidiaries, based on amounts paid or payable (each, a
“Significant Customer”). Each Significant Customer, as well as the total sales to each such
Significant Customer by the Company and its Subsidiaries from January 1, 2007 to June 30, 2008, is
listed on Section 3.22(a) of the Company Disclosure Letter. Neither the Company nor any of
its Subsidiaries has received any written, or to the knowledge of the Company, oral notice from any
Significant Customer that such Significant Customer shall not continue as a customer, reseller or
distributor (as the case may be) of the Company (or the Surviving Corporation) after the Closing.

          (b) Suppliers. Neither the Company nor any of its Subsidiaries has any outstanding material
dispute concerning products and/or services provided by any supplier who, in the six (6) fiscal
quarters ended June 30, 2008, was one of the fifteen (15) largest suppliers of products and/or
services to the Company and its Subsidiaries, based on amounts paid or payable (each, a
“Significant Supplier”). Each Significant Supplier, as well as the total payments to each such
Significant Supplier by the Company and its Subsidiaries from January 1, 2007 to June 30, 2008, is
listed on Section 3.22(b) of the Company Disclosure Letter. Neither the Company nor any of
the Company Subsidiaries has received any written, or the

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knowledge of the Company, oral notice
from any Significant Supplier that such supplier shall not continue as a supplier to the Company
(or the Surviving Corporation) after the Closing.

     3.23 Privacy.  Neither the Company nor any of its Subsidiaries has collected any personally identifiable
information from any third parties. The Company and each of its Subsidiaries has provided adequate
notice of its privacy practices in its privacy policy or policies, which policy or policies (and
the periods such policy or policies have been in effect) are set forth in Section 3.23 of
the Company Disclosure Letter. The Company’s and its Subsidiaries’ privacy policies conform, in
all material respects, to all of the Company’s and its Subsidiaries’ contractual commitments to
their Customers and applicable laws. With respect to all personal and user information described
in this Section 3.23, the Company and its Subsidiaries have at all times taken all steps
reasonably necessary (including, without limitation, implementing and monitoring compliance with
adequate measures with respect to technical and physical security) to ensure that the information
is protected against loss and against unauthorized access, use, modification, disclosure or other
misuse. To the knowledge of the Company or any of its Subsidiaries, there has been no unauthorized
access to or other misuse of that information or breaches of the Company’s or any of its
Subsidiaries’ privacy policies.

     3.24 Takeover Statutes and Rights Plans.  The Board of Directors of the Company has taken all actions so that the restrictions
contained in Section 203 of Delaware Law applicable to a “business combination” (as defined in such
Section 203), and any other similar Legal Requirement, will not apply to Parent during the pendency
of this Agreement, including the execution, delivery or performance of this Agreement and the
consummation of the Merger and the other transactions contemplated hereby. The Company does not
have in effect any “poison pill” or similar plan or agreement which could have a dilutive or
otherwise adverse effect on Parent as a result of consummation of the transactions contemplated
hereby.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF PARENT

AND MERGER SUB

     Parent and Merger Sub represent and warrant to the Company as follows:

     4.1 Organization.  Each of Parent and Merger Sub is duly organized, validly existing and in good standing
under the laws of the State of Delaware and has the requisite corporate power and authority to
conduct its business as it is presently being conducted and to own, lease or operate its respective
properties and assets.

     4.2 Authority; No Conflict; Necessary Consents. 

          (a) Authority. Each of Parent and Merger Sub has all requisite corporate power and authority
to enter into this Agreement and to consummate the transactions contemplated hereby. The execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby have
been duly authorized by all necessary corporate action on the part of the Parent and Merger Sub,
and no further action is required on the part of Parent and Merger Sub to authorize the execution
and delivery of this Agreement or to consummate the Merger and the other transactions contemplated
hereby, subject only to the filing of the Certificate of Merger pursuant to Delaware Law. This
Agreement has been duly executed and delivered by Parent and Merger Sub and, assuming due execution
and delivery of this Agreement by the Company, constitutes the valid and binding obligations of
Parent, enforceable against each of Parent and Merger Sub in accordance with its terms.

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          (b) No Conflict. The execution and delivery by Parent and Merger Sub of this Agreement and
the consummation of the transactions contemplated hereby, will not (i) conflict with or violate any
provision of their respective certificates of incorporation or bylaws, or (ii) subject to
compliance with the requirements set forth in Section 4.2(c), conflict with or violate any
material Contract or Legal Requirement applicable to Parent or Merger Sub or by which Parent or
Merger Sub or any of their respective properties or assets (whether tangible or intangible) is
bound or affected; except, in the case of each of the preceding clauses (i) and (ii), for any
conflict or violation which would not materially adversely affect the ability of the parties hereto
to consummate the Merger within the time frame in which the Merger would otherwise be consummated
in the absence of such conflict or violation.

          (c) Necessary Consents. No consent, approval, order, authorization, registration, declaration
or filing with any Governmental Entity, or any third party, is required to be made or obtained by
Parent or Merger Sub in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby, except for (i) the Necessary Consents; and
(ii) such consents, waivers, approvals, orders, authorizations, registrations, declarations and
filings which, if not obtained or made, would not materially and adversely affect the ability of
Parent and Merger Sub to consummate the Merger within the time frame in which the Merger would
otherwise be consummated in the absence of the need for such consent, approval, order,
authorization, registration, declaration or filing.

     4.3 Capital Resources.  Parent has, and will have available to it upon the consummation of the
Merger, sufficient capital resources to pay the aggregate Merger Consideration and to consummate
all of the transactions contemplated by this Agreement.

     4.4 Stock Ownership.  As of the date hereof, neither Parent nor Merger Sub beneficially owns
any shares of the Company’s capital stock. Neither Parent nor Merger Sub, nor any of their
“affiliates” or “associates,” has been an “interested stockholder” of the Company at any time
within three (3) years of the date hereof, as those terms are used in Section 203 of the Delaware
Law.

     4.5 No Prior Merger Sub Operations.  Merger Sub was formed solely for the purpose of effecting
the Merger and has not engaged in any business activities or conducted any operations other than in
connection with the transactions contemplated hereby.

     4.6 Information Supplied.  The information supplied or to be supplied by or on behalf of
Parent and Merger Sub for inclusion or incorporation by reference in the Proxy Statement, will not
contain, on the date of the mailing to the Company’s stockholders and at the time of the Company
Stockholders’ Meeting, any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they are made, not misleading. If at any time prior to the Effective
Time, any event relating to Parent or any of its affiliates, officers or directors should be
discovered by Parent which is required to be set forth in a supplement to the Proxy Statement,
Parent shall promptly inform the Company. Notwithstanding the foregoing, Parent makes no
representation or warranty with respect to any information supplied by the Company which is
contained in the Proxy Statement.

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ARTICLE V

CONDUCT BY THE COMPANY PRIOR TO THE EFFECTIVE TIME

     5.1 Conduct of Business by the Company. 

          (a) Ordinary Course. During the period from the date of this Agreement and continuing until
the earlier of the termination of this Agreement pursuant to its terms or the Effective Time, the
Company and each of its Subsidiaries shall, except as otherwise expressly required by this
Agreement (or set forth in Section 5.1 of the Company Disclosure Letter) or to the extent
that Parent shall otherwise consent in writing, (i) carry on its business in the usual, regular and
ordinary course in substantially the same manner as heretofore conducted and in compliance with all
applicable Legal Requirements, (ii) pay its Liabilities, debts and Taxes when due and pay or
perform its other obligations when due, in each case subject to good faith disputes over such
Liabilities, debts or Taxes, (iii) notify and give Parent the opportunity to participate, at its
sole expense, in the defense or settlement of any litigation to which the Company is a party, and
(iv) use commercially reasonable efforts consistent with past practices and policies to
(A) preserve intact its present business organization, (B) keep available the services of its
present Employees, and (C) preserve its relationships with customers, suppliers, distributors,
consultants, licensors, licensees and others with which it has business dealings.

          (b) Required Consent. Without limiting the generality of Section 5.1(a), except as
permitted by the terms of this Agreement (or set forth in Section 5.1 of the Company
Disclosure Letter), or to the extent that Parent shall otherwise consent in writing, during the
period from the date hereof and continuing until the earlier of the termination of this Agreement
pursuant to its terms or the Effective Time, the Company shall not do any of the following, and
shall not permit any of its Subsidiaries to do any of the following:

               (i) amend or change the Company Charter Documents or Subsidiary Charter Documents;

               (ii) acquire, or agree to acquire by merging or consolidating with, or by purchasing any
assets or equity securities of, or by any other manner, any business or corporation, partnership,
association or other business organization or division thereof, or other acquisition or agreement
to acquire any assets or any equity securities that are material, individually or in the aggregate,
to the business of the Company;

               (iii) enter into any Contract, agreement in principle, letter of intent, memorandum of
understanding or similar agreement with respect to any material joint venture, strategic
partnership or alliance;

               (iv) declare, set aside or pay any dividend on, or other distribution (whether in cash, stock
or property) in respect of, any of the Company’s or any of its Subsidiaries’ capital stock, or
purchase, redeem or otherwise acquire any of the Company’s capital stock or any other securities of
the Company or its Subsidiaries or any Company Option, Company Warrant, calls or rights to acquire
any such shares or other securities, except for repurchases from, and forfeitures by, Employees
following their termination pursuant to the terms of their pre-existing stock option or purchase
agreements and restricted stock award and restricted stock unit award agreements;

               (v) split, combine or reclassify any of the Company’s or any of its Subsidiaries’ capital
stock;

               (vi) except as contemplated under subsection (xxii) or as required pursuant to written
Contracts existing as of the date hereof that have been made available to Parent, (A) materially
increase or decrease the compensation or fringe benefits payable or to become payable to any
Employee

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(except for normal increases or decreases of cash compensation to current non-officer
Employees in the ordinary course of business consistent with past practice) by the Company or any
of its Subsidiaries, whether orally or in writing, (B) make any promise, commitment or payment,
whether orally or in writing, of any bonus payable or to become payable to any Employee (except
bonuses made to current non-officer Employees or newly hired non-officer Employees in the ordinary
course of business consistent with past practice), (C) adopt, change or terminate, whether orally
or in writing, any severance, change of control, termination or bonus plan, policy or practice
applicable to any Employee, (D) enter, whether orally or in writing, any employment, severance,
termination, change of control or indemnification agreement or any agreements the benefits of which
are contingent or the terms of which are materially altered upon the occurrence of a transaction
involving the Company of the nature contemplated hereby (either alone or upon the occurrence of
additional or subsequent events), (E) adopt, terminate or materially amend any Company Employee
Plan or collective bargaining agreement, except as may be required by applicable Legal Requirement,
(F) incur any liability or obligation to any of its officers, directors or stockholders, except for
normal and customary compensation and expense allowances payable to officers and directors in the
ordinary course of its business consistent with its past practices, or (G) forgive, whether orally
or in writing, any loan from the Company or any of its Subsidiaries to any Employee, in an amount
in excess of $10,000;

               (vii) enter into, amend, modify, terminate or grant a consent with respect to any Company
Material Contract, or waive, release or assign any material rights or claims thereunder;

               (viii) (A) enter into a customer Contract that provides for (or is reasonably expected to
provide for) revenues in excess of $250,000 annually and contains any material non-standard terms,
including but not limited to, provisions for unpaid future deliverables, non-standard service
requirements or future royalty payments other than in the ordinary course of business consistent
with past practice, or any material change in the manner in which it extends discounts, credits or
warranties to customers or otherwise deals with its customers, or (B) enter into any reseller or
distributor Contract that provides for (or is reasonably expected to provide for) revenues in
excess of $250,000 annually, in each case, other than in the ordinary course of business consistent
with past practice;

               (ix) make any change in accounting methods, except as required by GAAP or applicable Legal
Requirements;

               (x) enter into any debt, capital lease or other debt or equity financing transaction or enter
into any agreement in connection with any such transaction;

               (xi) undertake any material restructuring activities, including any material reductions in
force, lease terminations, restructuring of contracts or similar actions;

               (xii) sell, lease, license, encumber or otherwise dispose of any business lines or any
properties or assets (tangible or intangible), except for sales, leases, licenses or dispositions
of property or assets which are not material, individually or in the aggregate, to the business of
the Company or the licenses of current Company Products, in each case, in the ordinary course of
business and in a manner consistent with past practice;

               (xiii) make any loan or extend credit to any Person other than in the ordinary course of
business and consistent with past practice other than such loans or extensions of credit that do
not exceed $200,000;

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               (xiv) adopt or change any Tax accounting method or Tax election, enter into any closing
agreement in respect of Taxes, settle or compromise any Tax claim or assessment, or extend or waive
the limitation period applicable to any Tax claim or assessment other than with respect to any Tax
liability that is in an amount less than $200,000 individually, or $400,000 in the aggregate;

               (xv) make any expenditure, or enter into any transaction or commitment exceeding $200,000
individually or $400,000 in the aggregate, other than capital expenditures in the ordinary course
of business consistent with past practice;

               (xvi) other than as required pursuant to written Contracts existing as of the date hereof that
have been made available to Parent, accelerate or release any vesting condition to the right to
exercise any Company Option, Company Warrant or other right to purchase or otherwise acquire any
shares of the Company’s capital stock, or accelerate or release of any right to repurchase shares
of capital stock upon the stockholder’s termination of employment or services with it or pursuant
to any right of first refusal;

               (xvii) pay or discharge any Lien or other encumbrance on any of its assets or properties, or
pay or discharge any of its obligations or liabilities, in each case that was not either shown on
the Company Balance Sheet or incurred in the ordinary course of its business consistent with its
past practices after the date of the Company Balance Sheet in an amount not in excess of $200,000
individually, or $400,000 in the aggregate;

               (xviii) terminate the employment of a senior manager or key employee, or the terminate a
material number of employees;

               (xix) commence or settle any material litigation;

               (xx) make any material revaluation of any of its assets, including, without limitation,
writing down the value of capitalized inventory, spares, long term or short-term investments, fixed
assets, goodwill, intangible assets, deferred tax assets, or writing off notes or accounts
receivable;

               (xxi) cancel or terminate without reasonable substitute policy therefor any material insurance
policy naming the Company as a beneficiary or a loss payee without notice to Parent;

               (xxii) issue, deliver, sell, authorize, pledge or otherwise encumber any shares of capital
stock, Voting Debt or any securities convertible into shares of capital stock or Voting Debt, or
subscriptions, rights, warrants or options to acquire any shares of capital stock or Voting Debt or
any securities convertible into shares of capital stock or Voting Debt, or enter into other
agreements or commitments of any character obligating it to issue any such securities or rights,
other than: (A) issuances of Company Common Stock upon the exercise of Company Options or Company
Warrants existing on the date hereof or granted pursuant to clause (C) hereof in accordance with
their present terms (or terms at the time of grant in the case of grants made pursuant to
clause (C) hereof); (B) issuance of shares of Company Common Stock to participants in the Company
Purchase Plan pursuant to the terms thereof and (C) grants of stock options or other stock based
awards to employees of the Company or its Subsidiaries to acquire, individually, up to 20,000
shares (as adjusted for stock splits and the like) of Company Common Stock and, in the aggregate,
up to 300,000 shares (as adjusted for stock splits and the like) of Company Common Stock in any
30-day period, granted under the Company Stock Plans, in each case in the ordinary course of
business consistent with past practices in connection with ordinary course promotions or to new
hires and which options or stock-based awards have a vesting schedule no more favorable than
ratable monthly installments

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that vest over not less than four years and do not accelerate, or become subject to
acceleration, directly or indirectly, as a result of this Agreement, the approval or consummation
of the Merger and/or termination of employment following or in connection with the Merger;

               (xxiii) enter into any Contracts containing, or otherwise subject Parent or the Surviving
Corporation to, any non-competition, exclusivity or other material restrictions on the Company or
the Surviving Corporation or Parent, or any of their respective businesses, following the Closing,
except for exclusivity provisions which would not restrict the business or assets of Parent or its
Subsidiaries (other than the Surviving Corporation) in any way and that are entered into in the
ordinary course of business consistent with past practice; or

               (xxiv) take, commit, or agree in writing or otherwise to take, any of the actions described in
Sections 5.1(b)(i) through Section 5.1(b)(xxiii) hereof.

     5.2 Procedures for Requesting Parent Consent.  If the Company shall desire to take an action
which would be prohibited pursuant to Section 5.1(b) hereof without the written consent of
Parent, prior to taking such action the Company may request such written consent by sending an
e-mail or facsimile to each of the following individuals, and may not take such action until such
consent in writing has been received from either of the following individuals:

Ken Gonzalez

Telephone: (408) 346-3150

Facsimile: (408) 346-3514

E-mail address: ken_gonzalez@mcafee.com

Daniel Vaughn

Telephone: (408) 346-5834

Facsimile: (408) 346-3514

E-mail address: daniel_vaughn@mcafee.com

ARTICLE VI

ADDITIONAL AGREEMENTS

     6.1 Proxy Statement and Other Filings. 

          (a) As promptly as practicable after the execution of this Agreement (but in no event more
than ten (10) Business Days after the date of this Agreement), the Company shall prepare, and file
with the SEC, preliminary proxy materials (including a preliminary Proxy Statement) relating to the
seeking of Company Stockholder Approval. Parent shall provide promptly to the Company such
information concerning Parent as may be reasonably requested by the Company for inclusion in the
Proxy Statement, or in any amendments or supplements thereto. At the earliest practicable time
following the later of (i) receipt and resolution of SEC comments thereon, or (ii) the expiration
of the 10-day waiting period provided in Rule 14a-6(a) promulgated under the Exchange Act, the
Company shall file definitive proxy materials with the SEC and cause the definitive Proxy Statement
to be mailed to its stockholders. The Company will cause all documents that it is responsible for
filing with the SEC or other regulatory authorities in connection with the Merger (or as required
or appropriate to facilitate the Merger) to comply with all applicable Legal Requirements. Prior
to filing any Proxy Statement or any other filing with the SEC or any other Governmental Entity in
connection with the transactions contemplated hereby (including any amendment or

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supplement to the Proxy Statement as a result of any event or occurrence required to be set
forth therein), the Company shall provide Parent (which term shall in all instances in this
Section 6.1 also include Parent’s outside legal counsel whose review shall occur
concurrently with Parent’s) with reasonable opportunity to review and comment on each such filing
in advance and the Company shall in good faith consider including in such filings all comments
reasonably proposed by Parent.

          (b) The Company will notify Parent promptly of the receipt of any oral or written comments
from the SEC or its staff (or of notice of the SEC’s intent to review the Proxy Statement or the
issuance of any stop order) and of any request by the SEC or its staff or any other government
officials for amendments or supplements to the Proxy Statement or any other filing or for
additional/supplemental information, and will supply Parent with copies of all correspondence
between the Company or any of its advisers or representatives, on the one hand, and the SEC, or its
staff or any other government officials, on the other hand, with respect to the Proxy Statement or
other filing with any Governmental Entity in connection with the transactions contemplated hereby.
The Company shall provide Parent with a reasonable opportunity to review and comment on any
responses to comments or inquiries by the SEC or any other Governmental Entity with respect to any
filings related to (or necessary or appropriate to facilitate) the Merger, and shall consider in
good faith including in such response all comments reasonably proposed by Parent. The Company will
respond in good faith to any comments of the SEC and if, at any time prior to the Effective Time,
any event or information relating to the Company, Parent or Merger Sub, or any of their affiliates,
officers or directors, should be discovered by Parent or the Company which should be set forth in
an amendment or supplement to the Proxy Statement, so that such document would not include any
misstatement of a material fact or omit to state any material fact necessary to make the statements
therein not misleading, the party which discovers such information shall promptly notify the other
parties hereto and the Company shall cause an appropriate amendment or supplement describing such
information to be filed with the SEC as promptly as practicable thereafter and, to the extent
required by applicable Legal Requirements, disseminated to the stockholders of the Company.

     6.2 Meeting of Company Stockholders; Board Recommendation. 

          (a) Meeting of Company Stockholders. The Company will take all action necessary in accordance
with Delaware Law, the rules of the NASDAQ Global Select Market, its Charter Documents and its
Contracts and agreements with its stockholders to duly give notice of, convene and hold a meeting
of its stockholders, promptly following the mailing of the Proxy Statement to such stockholders,
for the purpose of considering and taking action with respect to the Company Stockholder Approval
(the “Company Stockholders’ Meeting”) to be held as promptly as practicable, and in any event (to
the extent permissible under applicable law) within thirty (30) days after the mailing of the Proxy
Statement to the Company’s stockholders. Subject to Section 6.3(d), the Company will use
commercially reasonable efforts (including by engaging a proxy solicitor) to solicit from its
stockholders proxies in favor of the Company Stockholder Approval and will take all other action
necessary or advisable to secure the vote or consent of its stockholders for the Company
Stockholder Approval. Notwithstanding anything to the contrary contained in this Agreement, the
Company may adjourn or postpone the Company Stockholders’ Meeting to the extent necessary (i) to
ensure that any necessary supplement or amendment to the Proxy Statement is provided to its
stockholders in advance of a vote on the adoption of this Agreement, or (ii) if, as of the time for
which the Company Stockholders’ Meeting is originally scheduled (as set forth in the Proxy
Statement), there are insufficient shares of Company Stock represented (either in person or by
proxy) to constitute a quorum necessary to conduct the business of such Company Stockholders’
Meeting. The Company shall ensure that the Company Stockholders’ Meeting is called, noticed,
convened, held and conducted, and that all proxies solicited by it in connection with the Company
Stockholders’ Meeting are solicited in compliance with

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Delaware Law, the rules of the NASDAQ Global Select Market, the Company Charter Documents, the
Company’s Contracts and agreements with its stockholders, and all other applicable Legal
Requirements. Without the prior written consent of Parent, adoption of this Agreement (including
adjournment of the Company Stockholders’ Meeting, if necessary, if a quorum is present, to solicit
additional proxies if there are not sufficient votes in favor of adoption of this Agreement), is
the only matter which the Company shall propose to be acted on by the Company’s stockholders at the
Company Stockholders’ Meeting.

          (b) Board Recommendation. Except to the extent expressly permitted by Section 6.3(d):
(i) the Board of Directors of the Company shall recommend that its stockholders vote in favor of
the adoption of this Agreement at the Company Stockholders’ Meeting, (ii) the Proxy Statement shall
include (A) a statement to the effect that the Board of Directors of the Company has recommended
that the Company’s stockholders vote in favor of the adoption of this Agreement at the Company
Stockholders’ Meeting, and (B) the Fairness Opinion, and (iii) neither the Board of Directors of
the Company nor any committee thereof shall withdraw, amend or modify, or publicly propose or
resolve to withdraw, amend or modify, in a manner adverse to Parent, the recommendation of its
Board of Directors that the Company’s stockholders vote in favor of the adoption of this Agreement.

     6.3 Alternative Transaction Proposals. 

          (a) No Solicitation. The Company agrees that it shall not, and will cause its Subsidiaries
not to, permit or authorize any of its or any of its Subsidiaries’ officers, directors (or
affiliates of any such officers or directors), employees, affiliates, investment bankers,
attorneys, accountants, or other agents, advisers or representatives (collectively,
“Representatives”) to, directly or indirectly: (i) solicit, initiate, seek, knowingly encourage or
facilitate, support or induce any inquiry with respect to, or the making, submission or
announcement of, any Alternative Transaction Proposal; (ii) participate or otherwise engage in any
discussions or negotiations regarding, or furnish to any person any non-public information or grant
access to the Company’s books, records or personnel with respect to, or take any other action
(except to the extent specifically permitted pursuant to Section 6.3(d)) to facilitate any
inquiries or the making of any proposal that constitutes or could reasonably be expected to lead
to, any Alternative Transaction Proposal (except to provide notification of or disclose the
existence of the provisions of this Section 6.3(a)); (iii) grant any person a waiver or
release under any standstill or similar agreement with respect to any class of equity security of
the Company or any of its Subsidiaries (which provisions the Company will, and will cause its
Subsidiaries to, use commercially reasonable efforts to enforce), or approve a transaction
(including any person becoming an “interested stockholder” under Section 203 of the Delaware Law);
provided, that immediately upon any violation of this clause (iii), Parent shall automatically be
released from its obligations under Addendum A to the Confidentiality Agreement without any further
action by any party hereto; (iv) approve, endorse or recommend any Alternative Transaction Proposal
(except to the extent specifically permitted pursuant to Section 6.3(d)); or (v) enter into
any letter of intent or similar document or any contract, agreement or commitment (whether binding
or not) contemplating or otherwise relating to any Alternative Transaction Proposal or transaction
contemplated thereby. The Company will, and will cause its Subsidiaries and its and their
Representatives to, immediately cease any and all existing activities, discussions or negotiations
with any third parties conducted heretofore with respect to any Alternative Transaction Proposal,
and, upon Parent’s request, shall request the prompt return or destruction of all confidential
information previously furnished to any Person with which the Company, its Subsidiaries or its or
their Representatives have engaged in any such activities within the twelve (12) month period
preceding the date hereof. Any breach of the foregoing provisions of this Section 6.3(a)
by any of the Company’s Subsidiaries or its or their Representatives shall be deemed to be a breach
by the Company.

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          (b) Notification of Unsolicited Alternative Transaction Proposals. As promptly as practicable
(but in no event more than twenty-four (24) hours) after receipt by the Company, any of its
Subsidiaries or its or their Representatives of any Alternative Transaction Proposal or any request
for non-public information or any expression of interest or inquiry that could reasonably be
expected to lead to an Alternative Transaction Proposal, the Company shall provide Parent with oral
and written notice of (A) the material terms and conditions of such Alternative Transaction
Proposal, request, expression of interest or inquiry, (B) the identity of the Person or group
making any such Alternative Transaction Proposal, request, expression of interest or inquiry, and
(C) a copy of all material written materials provided by or on behalf of such Person or group in
connection with such Alternative Transaction Proposal, request, expression of interest or inquiry.
In addition, the Company shall provide Parent as promptly as practicable with oral and written
notice setting forth all such information as is reasonably necessary to keep Parent currently
informed in all material respects of the status and details (including substantive modifications or
proposed substantive modifications) of any such Alternative Transaction Proposal, request,
expression of interest or inquiry (including any negotiations contemplated by
Section 6.3(c)(ii)) and shall promptly provide Parent a copy of all written materials
(including those provided by e-mail or otherwise in electronic format) amending any material terms
and conditions subsequently provided by or to it in connection with such Alternative Transaction
Proposal, request, expression of interest or inquiry. The Company shall provide Parent with
forty-eight (48) hours prior notice (or such lesser prior notice as is provided to the members of
its Board of Directors) of any meeting of its Board of Directors at which its Board of Directors
could reasonably be expected to consider any Alternative Transaction Proposal, including to
consider whether such Alternative Transaction Proposal is a Superior Proposal.

          (c) Superior Proposal. Notwithstanding anything to the contrary contained in
Section 6.3(a), in the event that, prior to the time that Company Stockholder Approval has
been obtained, the Company receives an unsolicited, bona fide written Alternative Transaction
Proposal from a third party which is determined to be, or which the Company’s Board of Directors
has in good faith concluded (following the receipt of advice from and consultation with its outside
legal counsel and a financial adviser of national standing) is reasonably likely to become, a
Superior Proposal, the Company may then take the following actions, but only if: (i) the Company’s
Board of Directors determines in good faith, after receiving advice from and consultation with its
outside legal counsel, that the failure to do so would be inconsistent with its fiduciary
obligations to its stockholders under Delaware Law, and (B) the Company has given Parent prior
written notice of its intention to take any of the following actions; and (ii) the Company shall
have previously complied with the provisions of this Section 6.3:

               (i) furnish non-public information to the third party making such Alternative Transaction
Proposal, provided that (A) the Company shall have first received from such third party an
executed confidentiality agreement containing (1) customary limitations on the use and disclosure
of all non-public written and oral information furnished to such third party on the Company’s
behalf, the terms of which are at least as restrictive as the terms contained in the
Confidentiality Agreement, and (2) a standstill provision, the term of which is at least as long as
the term contained in the Confidentiality Agreement, and the terms of which are at least as
restrictive as the terms contained in the Confidentiality Agreement, which confidentiality
agreement shall not include any provision having the actual or purported effect of restricting the
Company from fulfilling its obligations under this Agreement or the Confidentiality Agreement, and
(B) contemporaneously with furnishing any such non-public information to such third party, the
Company furnishes such non-public information to Parent (to the extent such non-public information
has not been previously so furnished); and

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               (ii) engage in discussions or negotiations with the third party with respect to the
Alternative Transaction Proposal.

          (d) Change of Recommendation. Notwithstanding Section 6.2(b), at any time prior to
the Company Stockholder Approval, the Board of Directors of the Company may, solely in response to
a Superior Proposal or an Intervening Event, make a Change of Recommendation and, in the case of a
Superior Proposal or an Intervening Event after which Parent does not timely deliver a Continuation
Notice (as defined below), terminate this Agreement in accordance with Section 8.1(h), if
all of the following conditions in clauses (i) through (v) are met:

               (i) in the case of a Superior Proposal, such Superior Proposal has not been withdrawn and
continues to be a Superior Proposal;

               (ii) the Company shall have (A) delivered to Parent written notice (a “Change of
Recommendation Notice”) at least three (3) Business Days prior to publicly effecting such Change of
Recommendation in response to a Superior Proposal or an Intervening Event (and, if applicable, of
its intention to terminate this Agreement in response to a Superior Proposal) which shall state
expressly (1) that the Company has received a Superior Proposal or determined the existence of an
Intervening Event, (2) the material terms and conditions of the Superior Proposal and the identity
of the Person or group making the Superior Proposal or, in the case of an Intervening Event,
describe in reasonable detail the cause and factors constituting such Intervening Event, and
(3) that the Company intends to effect a Change of Recommendation and the manner in which it
intends to do so; (B) provide to Parent a copy of all materials and information delivered or made
available to the Person or group making the Superior Proposal in connection with a Superior
Proposal (to the extent not previously delivered or made available to Parent), and (C) during the
aforementioned three (3) Business Day period, if requested by Parent, engaged in good faith
negotiations to amend this Agreement in such a manner that the Superior Proposal would no longer be
a Superior Proposal or, in the case of an Intervening Event, obviates the need for a Change of
Recommendation;

               (iii) Parent shall not have, within the aforementioned three (3) Business Day period, made an
offer that the Company’s Board of Directors has in good faith determined (after the receipt of
advice from and consultation with its outside legal counsel and a financial adviser of national
standing) results in the Alternative Transaction Proposal that had been determined to be a Superior
Proposal no longer being a Superior Proposal or, in the case of an Intervening Event, obviates the
need for a Change of Recommendation;

               (iv) the Board of Directors of the Company has concluded in good faith, after receipt of
advice from and consultation with its outside legal counsel, that, in light of such Superior
Proposal or Intervening Event and after considering any adjustments or negotiations pursuant to the
preceding clause (ii), that the Company’s Board of Directors’ failure to effect a Change of
Recommendation would be inconsistent with its fiduciary obligations to the stockholders of the
Company under Delaware Law; and

               (v) the Company shall have previously complied with the provisions set forth in
Section 6.2 or this Section 6.3.

          (e) Continuing Obligation Regarding Company Stockholders’ Meeting. Notwithstanding anything
to the contrary contained in this Agreement, the obligation of the Company to call, give notice of,
convene and hold the Company Stockholders’ Meeting shall not be limited or otherwise affected by
the commencement, disclosure, announcement or submission to it of any Alternative Transaction

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Proposal, or by any Change of Recommendation; provided, however, that in the
event of a Change of Recommendation in response to an Intervening Event, Parent must notify the
Company, within three (3) Business Days after such Change of Recommendation (such notice, a
“Continuation Notice”), that it wishes the Board of Directors of the Company to submit this
Agreement to the stockholders of the Company in accordance with Section 6.2(a) for the
purpose of adopting this Agreement and, if Parent does not deliver a Continuation Notice within
such period, the Company may, subject to and in accordance with Section 8.1(h), terminate
this Agreement.

          (f) Compliance with Tender Offer Rules. Nothing contained in this Agreement shall prohibit
the Company or its Board of Directors from taking and disclosing to the stockholders of the Company
a position contemplated by Rules 14d-9 and 14e-2(a) promulgated under the Exchange Act;
provided that the content of any such disclosure thereunder shall be governed by the terms
of this Agreement. Without limiting the foregoing proviso, the Company shall not effect a Change
of Recommendation unless specifically permitted pursuant to the terms of Section 6.3(d).

          (g) Specific Performance. The parties hereto agree that irreparable damage would occur in the
event that the provisions of this Section 6.3 were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed by the parties hereto that
Parent, prior to any valid termination of this Agreement in accordance with Article VIII,
shall be entitled to an immediate injunction or injunctions, without the necessity of proving the
inadequacy of money damages as a remedy and without the necessity of posting any bond or other
security, to prevent breaches of the provisions of this Section 6.3 and to enforce
specifically the terms and provisions hereof in any court of the United States or any state having
jurisdiction, this being in addition to any other remedy to which Parent may be entitled at law or
in equity. Without limiting the foregoing, it is understood that any violation of the restrictions
set forth above by any Subsidiary of the Company or any of the Company’s or its Subsidiaries’
Representatives shall be deemed to be a breach of this Agreement by the Company.

     6.4 Confidentiality; Access to Information. 

          (a) Confidentiality. The parties acknowledge that the Company and Parent have previously
executed a Mutual Nondisclosure Agreement, dated as of August 23, 2007 and amended on September 4,
2008 and September 10, 2008 (as amended from time to time, the “Confidentiality Agreement”), which
Confidentiality Agreement will continue in full force and effect in accordance with its terms.

          (b) Access to Information. Subject to the Confidentiality Agreement and applicable law, the
Company shall, and shall cause each of its Subsidiaries to, afford to Parent and to the officers,
employees, accountants, counsel, financial advisers and other representatives of Parent, reasonable
access at all reasonable times on reasonable notice during the period prior to the Effective Time
to all their properties, books, Contracts, commitments, assets (including the Company Intellectual
Property, design processes and source code), personnel and records (provided, that such
access shall not unreasonably interfere with the business or operations of the Company and its
Subsidiaries) and, during such period and subject to the Confidentiality Agreement and applicable
law, the Company shall, and shall cause each of its Subsidiaries to, furnish promptly to Parent
(i) a copy of each report, schedule, registration statement and other document filed by it during
such period pursuant to the requirements of federal or state securities laws, and (ii) all other
information concerning its business, properties and personnel as Parent may reasonably request.

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     6.5 Public Disclosure.  Without limiting any other provision of this Agreement, Parent and the
Company will consult with each other before issuing, and provide each other the opportunity to
review, comment upon and concur with, and use commercially reasonable efforts to agree on any press
release or public statement with respect to this Agreement and the transactions contemplated
hereby, including the Merger, and any Alternative Transaction Proposal and will not issue any such
press release or make any such public statement prior to such consultation and (to the extent
practicable) agreement or the content of such statement, except as may be required by applicable
Legal Requirements or any listing agreement with, in the case of Parent, the NYSE, and in the case
of the Company, the NASDAQ Global Select Market, or any other applicable national or regional
securities exchange or market. The initial press release to be issued with respect to the
transactions contemplated by this Agreement shall be in the form agreed to by the parties. In
addition, except to the extent disclosed in or consistent with the Proxy Statement in accordance
with the provisions of Section 6.1 or prior communications consented to in accordance with
this Section 6.5, the Company shall not issue any press release or otherwise make any
public statement or disclosure concerning Parent or its business, financial condition or results of
operations without the consent of Parent (which consent shall not be unreasonably withheld or
delayed), except as may be required by applicable Legal Requirement, court process or by
obligations pursuant to the Company’s listing agreement with the NASDAQ Global Select Market.
Notwithstanding the foregoing, this Section 6.5 shall not apply to the matters set forth in
Section 6.2 or Section 6.3.

     6.6 Regulatory Filings; Reasonable Efforts. 

          (a) Regulatory Filings. Each of Parent, Merger Sub and the Company shall coordinate and
cooperate with one another and shall each use commercially reasonable efforts to comply with, and
shall each refrain from taking any action that would impede compliance with, all Legal
Requirements, and as promptly as practicable after the date hereof, each of Parent, Merger Sub and
the Company shall make all filings, notices, petitions, statements, registrations, submissions of
information, application or submission of other documents required by any Governmental Entity in
connection with the Merger and the transactions contemplated hereby, including, without limitation:
(i) Notification and Report Forms with the FTC and the DOJ as required by the HSR Act, (ii) filings
under any other comparable pre-merger notification forms reasonably determined by Parent to be
required by the merger notification or control laws of any applicable jurisdiction, as agreed by
the parties hereto, and (iii) any filings required under the Securities Act, the Exchange Act, any
applicable state or securities or “blue sky” laws and the securities laws of any foreign country,
or any other Legal Requirement relating to the Merger. Each of Parent and the Company will cause
all documents that it is responsible for filing with any Governmental Entity under this
Section 6.6(a) to comply in all material respects with all applicable Legal Requirements.

          (b) Exchange of Information. Parent, Merger Sub and the Company each shall promptly supply
the other with any information that may be required in order to effectuate any filings or
application pursuant to Section 6.6(a). Except where prohibited by applicable Legal
Requirements, and subject to the Confidentiality Agreement, each of the Company and Parent shall
consult with the other prior to taking a position with respect to any such filing, shall permit the
other to review and discuss in advance, and consider in good faith the views of the other in
connection with any analyses, appearances, presentations, memoranda, briefs, white papers,
arguments, opinions and proposals before making or submitting any of the foregoing to any
Governmental Entity by or on behalf of any party hereto in connection with any investigations or
proceedings in connection with this Agreement or the transactions contemplated hereby (including
under any antitrust or fair trade Legal Requirement), coordinate with the other in preparing and
exchanging such information and promptly provide the other and/or its counsel with copies of all
filings, presentations or submissions (and a summary of any oral presentations) made by such party
with any

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Governmental Entity in connection with this Agreement or the transactions contemplated hereby,
provided that with respect to any such filing, presentation or submission, each of Parent
and the Company need not supply the other (or its counsel) with copies (or in the case of oral
presentations, a summary) to the extent that any law, treaty, rule or regulation of any
Governmental Entity applicable to such party requires such party or its Subsidiaries to restrict or
prohibit access to any such information. Notwithstanding the foregoing, except as may be agreed in
connection with any joint defense agreement executed between counsel for Parent and counsel for the
Company, Parent, Merger Sub and the Company will not be required to share with each other any
documents covered by Item 4(c) of filings prepared in connection with the HSR Act.

          (c) Notification. Each of Parent, Merger Sub and the Company will notify the other promptly
upon the receipt of: (i) any comments from any officials of any Governmental Entity in connection
with any filings made pursuant hereto and (ii) any request by any officials of any Governmental
Entity for amendments or supplements to any filings made pursuant to, or information provided to
comply in all material respects with, any Legal Requirements. Whenever any event occurs that is
required to be set forth in an amendment or supplement to any filing made pursuant to
Section 6.6(a), Parent, Merger Sub or the Company, as the case may be, will promptly inform
the other of such occurrence and cooperate in filing with the applicable Governmental Entity such
amendment or supplement.

          (d) Reasonable Efforts. Subject to the express provisions of Section 6.2 and
Section 6.3 hereof and upon the terms and subject to the conditions set forth herein, each
of the parties agrees to use commercially reasonable efforts to take, or cause to be taken, all
actions, and to do, or cause to be done, and to assist and cooperate with the other parties in
doing, all things necessary, proper or advisable to consummate and make effective, in the most
expeditious manner practicable, the Merger and the other transactions contemplated by this
Agreement, including using commercially reasonable efforts to accomplish the following: (i) the
taking of all reasonable acts necessary to cause the conditions precedent set forth in
Article VII to be satisfied; (ii) the obtaining of all necessary actions or nonactions,
waivers, consents, approvals, orders and authorizations from Governmental Entities and the making
of all necessary registrations, declarations and filings (including registrations, declarations and
filings with Governmental Entities, if any) and the taking of all reasonable steps as may be
necessary to avoid any suit, claim, action, investigation or proceeding by any Governmental Entity;
(iii) the obtaining of all necessary consents, approvals or waivers from third parties; (iv) the
defending of any suits, claims, actions, investigations or proceedings, whether judicial or
administrative, challenging this Agreement or the consummation of the transactions contemplated
hereby; and (v) the execution or delivery of any additional instruments necessary to consummate the
transactions contemplated by, and to fully carry out the purposes of, this Agreement. In
connection with and without limiting the foregoing, the Company and its Board of Directors shall,
if any takeover statute or similar Legal Requirement is or becomes applicable to the Merger, this
Agreement or any of the transactions contemplated by this Agreement, use commercially reasonable
efforts to ensure that the Merger and the other transactions contemplated by this Agreement may be
consummated as promptly as practicable on the terms contemplated by this Agreement and otherwise to
minimize the effect of such Legal Requirement on the Merger, this Agreement and the transactions
contemplated hereby.

          (e) Antitrust Restraints. Notwithstanding anything in this Agreement to the contrary, it is
expressly understood and agreed that: (i) neither Parent nor Merger Sub shall have any obligation
to litigate or contest any administrative or judicial action or proceeding or any decree, judgment,
injunction or other order, whether temporary, preliminary or permanent; and (ii) neither Parent nor
Merger Sub shall be under any obligation to make proposals, execute or carry out agreements, enter
into consent decrees or submit to orders providing for (A) the sale, divestiture, license or other
disposition or holding separate (through the establishment of a trust or otherwise) of any assets
or categories of assets of Parent or any of its affiliates or

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the Company or any of its Subsidiaries, (B) the imposition of any limitation or regulation on
the ability of Parent or any of its affiliates to freely conduct their business or own such assets,
or (C) the holding separate of the shares of Company capital stock or any limitation or regulation
on the ability of Parent or any of its affiliates to exercise full rights of ownership of the
shares of Company capital stock (any of the foregoing, an “Antitrust Restraint”).

     6.7 Notification of Certain Matters. 

          (a) By the Company. The Company shall give prompt notice to Parent and Merger Sub in writing
of (i) any representation or warranty made by it contained in this Agreement becoming untrue or
inaccurate, or any failure of the Company to comply with or satisfy any covenant, condition or
agreement to be complied with or satisfied by it under this Agreement, in each case, such that the
conditions set forth in Section 7.2(a) or Section 7.2(b) would not be satisfied;
(ii) the occurrence of any Material Adverse Effect or any event or occurrence that would reasonably
be expected to cause the conditions set forth in Article VII not to be satisfied; and
(iii) any claim, action, suit, arbitration, mediation, proceeding or investigation by or before any
court, arbitrator or arbitration panel, board or Governmental Entity, initiated by or against it,
or known by the Company or any of its Subsidiaries to be threatened against the Company or any of
its Subsidiaries, or any of their respective officers, directors, employees or stockholders in
their capacity as such.

          (b) By Parent. Parent and Merger Sub shall give prompt notice to the Company in writing of
any representation or warranty made by it contained in this Agreement becoming untrue or
inaccurate, or any failure of Parent to comply with or satisfy in any material respect any
covenant, condition or agreement to be complied with or satisfied by it under this Agreement, in
each case, such that the conditions set forth in Section 7.3(a) or Section 7.3(b)
would not be satisfied.

     6.8 Third-Party Consents.  As soon as practicable following the date hereof, the Company will
use commercially reasonable efforts to obtain any consents, waivers and approvals under any of its
or its Subsidiaries’ respective Contracts required to be obtained in connection with the
consummation of the transactions contemplated hereby, including all consents, waivers and approvals
set forth in Section 3.3(b) of the Company Disclosure Letter. In connection with seeking
such consents, waivers and approvals, the Company shall keep Parent informed of all developments
material to the obtaining of such consents, waivers and approvals, and shall, at Parent’s request,
include Parent in any discussions or communications with any parties whose consent, waiver or
approval is sought hereunder. Such consents, waivers and approvals shall be in a form reasonably
acceptable to Parent. In the event the Merger does not close for any reason, Parent shall not have
any liability to the Company, its stockholders or any other Person for any costs, claims,
liabilities or damages resulting from the Company seeking to obtain such consents, waivers and
approvals. As soon as practicable following the date hereof, the Company shall deliver any notices
required under any of its or its Subsidiaries’ respective Contracts that are required to be
provided in connection with the consummation of the transactions contemplated hereby.

     6.9 Employee Matters. 

          (a) Termination of Company Employee Stock Purchase Plans. Prior to the Effective Time, each
of the Company Purchase Plans shall be terminated. The rights of participants in each Company
Purchase Plan with respect to any offering period then underway under such Company Purchase Plan
shall be determined by treating the last Business Day prior to, or if more administratively
advisable, the last payroll date of the Company immediately prior to, the Effective Time, as the
last day of such offering period and by making such other pro-rata adjustments as may be necessary
to reflect the shortened offering period but

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otherwise treating such shortened offering period as a fully effective and completed offering
period for all purposes under such Company Purchase Plan. Prior to the Effective Time, the Company
shall take all actions (including, if appropriate, amending the terms of such the Company Purchase
Plan) that are necessary to give effect to the transactions contemplated by this
Section 6.9(a).

          (b) Termination of 401(k) Plans. Effective as of no later than the day immediately preceding
the Closing Date, each of the Company and any ERISA Affiliate shall terminate any and all group
severance, separation or salary continuation plans, programs or arrangements and any Company
Employee Plans intended to include a Code Section 401(k) arrangement (each, a “401(k) Plan”),
unless Parent provides written notice to the Company that such 401(k) Plans shall not be
terminated. Unless Parent provides such written notice to the Company, no later than five Business
Days prior to the Closing Date, the Company shall provide Parent with evidence that such Company
Employee Plan(s) have been terminated (effective as of no later than the day immediately preceding
the Closing Date) pursuant to resolutions of the Board of Directors of the Company or such ERISA
Affiliate, its Subsidiaries or such ERISA Affiliate, as the case may be. The form and substance of
such resolutions shall be provided or such resolutions shall be subject to review and approval by
Parent. The Company also shall take such other actions in furtherance of terminating such Company
Employee Plan(s) as Parent may reasonably require. In the event that termination of a 401(k) Plan
would reasonably be anticipated to trigger liquidation charges, surrender charges or other fees,
then such charges and/or fees shall the responsibility of the Company, and the Company shall take
such actions as are necessary to reasonably estimate the amount of such charges and/or fees and
provide such estimate in writing to Parent no later than seven (7) Business Days prior to the
Closing Date.

          (c) Consultation on Employee Communications. The Company will consult with Parent (and
consider in good faith the advice of Parent) prior to sending any material notices or other
communication materials to its employees regarding the matters described in this
Section 6.9 and any other matters relating to the entry into of this Agreement or the
effects of the Merger.

          (d) Employment Matters. As of the Closing Date, Parent shall provide the employees of the
Company who are employed by Parent, or a subsidiary of Parent, after the Closing Date (the
“Continuing Employees”) with comparable types and levels of employee benefits (excluding any
defined benefit pension plan and equity award, change of control and severance benefits) (“Parent
Plans”), as those provided to similarly-situated employees of Parent. To the extent such employee
benefits are provided through Parent Plans and not the Company Employee Plans, for purposes of
determining eligibility to participate, vesting and entitlement to benefits where length of service
is relevant under any Parent Plan and to the extent permitted by applicable law and subject to any
applicable break in service or similar rule, Parent shall provide that the Continuing Employees
shall receive service credit under the Parent Plans for their period of service with the Company
and its subsidiaries prior to the Closing, except where doing so would cause a duplication of
benefits. If the Closing Date occurs prior to December 31, 2008 and such benefits are provided
under Parent Plans, Parent shall use its commercially reasonable efforts to cause any and all
pre-existing condition (or actively at work or similar) limitations, eligibility waiting periods
and evidence of insurability requirements under any Parent Plan that is a group health plan to be
waived with respect to such Continuing Employees and their eligible dependents in accordance with
applicable laws and shall provide them with credit for any co-payments, deductibles, and offsets
(or similar payments) made during the plan year including the Closing Date for the purposes of
satisfying any applicable deductible, out-of-pocket, or similar requirements under any Parent Plan
in which they are eligible to participate after the Closing Date; provided,
however, that, as a precondition to Parent’s obligation to provide such credit, the
administrator of the relevant Parent Plans shall have first received a complete and accurate
listing of such expenses incurred by the Continuing Employees from January 1, 2008 (or, if earlier,
the first day of the applicable plan year) through the date on which their

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participation in any such Parent Plan commences. Nothing contained in this
Section 6.9 shall alter the “at-will” status of any of the U.S. employees of the Company or
any of its Subsidiaries.

     6.10 Indemnification. 

          (a) Indemnity. From and after the Effective Time, (i) Parent will cause the Surviving
Corporation to fulfill and honor in all respects the obligations of the Company pursuant to and to
the extent of any indemnification agreements between the Company and its directors and officers as
of immediately prior to the Effective Time (the “Indemnified Parties”) in effect on the date of
this Agreement and listed in Section 6.10(a) of the Company Disclosure Letter, subject to
applicable law, and (ii) until the sixth (6th) anniversary of the Effective Time, Parent
will cause the Surviving Corporation to fulfill and honor in all respects the obligations of the
Company pursuant to and to the extent of any indemnification provisions under the Company Charter
Documents as in effect on the date hereof, in each case, with respect to claims arising out of acts
or omissions occurring at or prior to the Effective Time. Until the sixth (6th)
anniversary of the Effective Time or such longer period as is required by applicable Legal
Requirements, the Certificate of Incorporation and Bylaws of the Surviving Corporation will contain
provisions with respect to exculpation and indemnification that are at least as favorable to the
Indemnified Parties as those contained in the Certificate of Incorporation and Bylaws of the
Company as in effect on the date hereof, which provisions will not be amended, repealed or
otherwise modified in any manner that would adversely affect the rights thereunder of Indemnified
Parties, unless such modification is required by applicable Legal Requirements, or unless proper
provision is made so that the successors and assigns of the Surviving Corporation assume the
obligations set forth in this Section 6.10(a).

          (b) Insurance. For a period of six (6) years after the Effective Time, Parent will cause the
Surviving Corporation to use commercially reasonable efforts to cause to be maintained directors’
and officers’ liability insurance maintained by the Company covering those persons who are covered
by the Company’s directors’ and officers’ liability insurance policy as of the date hereof for
events occurring prior to the Effective Time on terms comparable to those applicable to the current
directors and officers of the Company for a period of six (6) years; provided,
however, that in no event will the Surviving Corporation be required to expend in excess of
200% of the annual premium currently paid by the Company for such coverage (and to the extent
annual premium would exceed 200% of the annual premium currently paid by the Company for such
coverage, the Surviving Corporation shall use commercially reasonable efforts to cause to be
maintained the maximum amount of coverage as is available for such 200% of such annual premium);
and provided, further, that notwithstanding the foregoing, Parent may satisfy its
obligations under this Section 6.10(b) by purchasing a “tail” policy under the Company’s
existing directors’ and officers’ insurance policy which (i) has an effective term of six (6) years
from the Effective Time, (ii) covers those persons who are currently covered by the Company’s
directors’ and officers’ insurance policy in effect as of the date hereof for actions and omissions
occurring on or prior to the Effective Time, (iii) contains terms and conditions (including,
without limitation, coverage amounts) that are no less advantageous, when taken as a whole, to
those applicable to the current directors and officers of the Company, and (iv) the cost of which
to Parent or the Surviving Corporation does not exceed an amount equal to 200% of the annual
premium currently paid by the Company (and, to the extent such costs exceed such amount, Parent or
the Surviving Corporation shall only be required to obtain the maximum amount of “tail” coverage as
is available for 200% of such annual premium).

          (c) Third–Party Beneficiaries. This Section 6.10 is intended to be for the benefit
of, and shall be enforceable by the Indemnified Parties and their heirs and personal
representatives and shall be binding on Parent and the Surviving Corporation and their respective
successors and assigns.

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     6.11 Section 16 Matters. Prior to the Effective Time, the Company shall take all such steps as may be required (to
the extent permitted under applicable law) to cause any dispositions of Company Stock (including
derivative securities with respect to such Company Stock) resulting from the transactions
contemplated by Article II of this Agreement by each individual who is subject to the
reporting requirements of Section 16(a) of the Exchange Act with respect to the Company to be
exempt under Rule 16b-3 promulgated under the Exchange Act.

     6.12 No Modification of Representations, Warranties, Covenants or Agreements. No information or knowledge obtained in any investigation or review or notification
pursuant to Section 5.1(a) (Conduct of Business by the Company), Section 6.4
(Confidentiality; Access to Information), Section 6.6 (Regulatory Filings; Reasonable
Efforts), Section 6.7 (Notification of Certain Matters) or otherwise shall (a) affect or be
deemed to modify any representation or warranty contained herein, the covenants or agreements of
the parties hereto or the conditions to the obligations of the parties hereto under this Agreement,
(b) limit or otherwise affect any remedies available to the party conducting such investigation or
review or receiving such notice or the obligation of such party to consummate the Merger, or (c) in
the case of the Company, be deemed to amend or supplement the Company Disclosure Letter or prevent
or cure any misrepresentations, breach of warranty or breach of covenant or agreement.

     6.13 State Takeover Statutes. The Company’s Board of Directors shall take all actions sufficient to render inapplicable
to the Merger, the execution, delivery and performance of this Agreement and the Voting Agreements
and the transactions contemplated hereby and thereby, the provisions of Section 203 of Delaware Law
applicable to a “business combination” (as defined in such Section 203 of Delaware Law).

     6.14 Section 409A Compliance. Effective as of no later than the Closing Date, each of the Company and any ERISA Affiliate
shall bring each Contract, agreement or arrangement (including all Company Employee Plans and
Employee Agreements) between the Company or any ERISA Affiliate and any Employee, that is a
“nonqualified deferred compensation plan” subject to Section 409A of the Code, into compliance with
Section 409A of the Code so as to avoid the imposition of additional Tax under such section. The
form and substance of any such amendments and/or resolutions shall be subject to review and
approval by Parent. The Company also shall take such other actions in furtherance of compliance
with Section 409A of Code as Parent may reasonably require.

     6.15 Notice to Holders of Company Series A Preferred Stock. As promptly as practicable following the date of this Agreement, the Company shall provide
notice of an anticipated “Change in Control” (as such term is defined in the Certificate of
Designations) as a result of the Merger to the holders of shares of Company Series A Preferred
Stock, which notice shall state the anticipated date of the Change in Control, and which notice
shall be delivered by depositing the same with Federal Express or similar courier for next Business
Day delivery, freight paid (with acknowledgement of receipt by the holders of shares of Company
Series A Preferred Stock), but not less than ten (10) calendar days nor more than twenty (20)
calendar days prior to the Change in Control date.

ARTICLE VII

CONDITIONS TO THE MERGER

     7.1 Conditions to the Obligations of Each Party to Effect the Merger. The respective obligations of each party to this Agreement to effect the Merger shall be
subject to the satisfaction at or prior to the Closing Date of each of the following conditions:

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          (a) Company Stockholder Approval. The Company Stockholder Approval shall have been obtained
in accordance with applicable law at the time of such approval.

          (b) No Injunctions or Restraints. No Governmental Entity of competent jurisdiction shall have
enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order,
decree, injunction or other order (whether temporary, preliminary or permanent) which (i) is in
effect and (ii) has the effect of making the Merger illegal or otherwise prohibiting or preventing
consummation of the Merger.

          (c) Antitrust Matters. (i) All applicable waiting periods (and any extensions thereof)
applicable to the Merger under the HSR Act shall have expired or early termination of such waiting
periods shall have been granted by both the FTC and the DOJ, and (ii) all other approvals under
antitrust, competition or similar applicable laws of other foreign jurisdictions set forth on
Schedule 7.1(c) shall have been obtained, in each case, without any condition or
requirement requiring or calling for any Antitrust Restraint.

     7.2 Additional Conditions to the Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to consummate and effect the Merger shall be
subject to the satisfaction at or prior to the Closing Date of each of the following conditions,
any of which may be waived, in writing, exclusively by Parent and Merger Sub:

          (a) Representations and Warranties.

               (i) The representations and warranties of the Company set forth herein (other than in
Section 3.2 (Capital Structure) and Section 3.14 (Brokers’ and Finders’ Fees; Fees
and Expenses)) shall be true and correct (disregarding, for this purpose, all qualifications and
exceptions contained therein relating to materiality or “Material Adverse Effect”), in each case,
both when made and at and as of the Closing Date, as if made at and as of such time (except to the
extent expressly made as of an earlier date, in which case as of such date), except to the extent
that the failure of any such representations and warranties to be so true and correct does not
have, and would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Company.

               (ii) The representations and warranties of the Company set forth in Section 3.14
(Brokers’ and Finders’ Fees; Fees and Expenses) shall be true and correct in all material respects,
in each case, both when made and at and as of the Closing Date, as if made at and as of such time
(except to the extent expressly made as of an earlier date, in which case as of such date).

               (iii) The representations and warranties of the Company set forth in Section 3.2
(Capital Structure) shall be true and correct, in each case, both when made and at and as of the
Closing Date, as if made at and as of such time (except to the extent expressly made as of an
earlier date, in which case as of
such date), except with respect to deviations in the Company’s actual fully diluted
capitalization (including outstanding Company capital stock, Company Options, and Company Warrants)
from the Company’s fully diluted capitalization as set forth in Sections 3.2 (Capital
Structure) by an amount that does not exceed, in the aggregate, one percent (1.0%) of such fully
diluted capitalization.

               (iv) At the Closing, Parent shall have received a certificate to the effect of clauses (i)
through (iii) above signed on behalf of the Company by the Chief Executive Officer and Chief
Financial Officer of the Company.

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          (b) Agreements and Covenants. The Company shall have performed or complied in all material
respects with all agreements and covenants required by this Agreement to be performed or complied
with by it at or prior to the Closing Date; and Parent and Merger Sub shall have received a
certificate to such effect signed on behalf of the Company by the Chief Executive Officer and Chief
Financial Officer of the Company.

          (c) Material Adverse Effect. No Material Adverse Effect on the Company shall have occurred
and be continuing since the date hereof, whether or not resulting from a breach in any
representation, warranty, covenant or agreement in this Agreement; and Parent and Merger Sub shall
have received a certificate to such effect signed on behalf of the Company by the Chief Executive
Officer and Chief Financial Officer of the Company.

          (d) No Litigation. There shall not be any pending or threatened suit, action or proceeding
asserted by or before any Governmental Entity (i) challenging or seeking to restrain or prohibit
the consummation of the Merger or any of the other transactions contemplated by this Agreement, the
effect of which restraint or prohibition if obtained would cause the condition set forth in
Section 7.1(b) to not be satisfied, or (ii) seeking to impose an Antitrust Restraint.

          (e) Sarbanes-Oxley Certifications. With respect to any Company SEC Reports filed with the SEC
after the date of this Agreement, neither the principal executive officer nor the principal
financial officer of the Company shall have failed to provide the necessary certifications in the
form required under Section 302 and Section 906 of SOX.

          (f) Dissenting Shares. There shall not have been delivered to the Company written notices of
intent to demand payment pursuant to Section 262 of the Delaware Law by Dissenting Stockholders
with respect to more than ten percent (10%) of the aggregate outstanding shares of Company Common
Stock or Company Series A Preferred Stock.

     7.3 Additional Conditions to the Obligations of the Company. The obligation of the Company to consummate and effect the Merger shall be subject to the
satisfaction at or prior to the Closing Date of each of the following conditions, any of which may
be waived, in writing, exclusively by the Company:

          (a) Representations and Warranties. The representations and warranties of Parent and Merger
Sub set forth herein shall be true and correct (disregarding, for this purpose, all qualifications
and exceptions contained therein relating to materiality), in each case, both when made and at and
as of the Closing Date, as if made at and as of such time (except to the extent expressly made as
of an earlier date, in which case as of such date), except to the extent that the failure of any
such representations and warranties to
be so true and correct does not materially impede the ability of Parent or Merger Sub to
consummate the transactions contemplated by this Agreement in accordance with the terms hereof and
applicable Legal Requirements. The Company shall have received a certificate to such effect signed
on behalf of Parent and Merger Sub by a duly authorized officer of Parent.

          (b) Agreements and Covenants. Parent and Merger Sub shall have performed or complied in all
material respects with all agreements and covenants required by this Agreement to be performed or
complied with by it on or prior to the Closing Date; and the Company shall have received a
certificate with respect to the foregoing signed on behalf of Parent and Merger Sub by a duly
authorized officer of Parent.

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ARTICLE VIII

TERMINATION, AMENDMENT AND WAIVER

     8.1 Termination. This Agreement may be terminated at any time prior to the Effective Time, by action taken
by the terminating party or parties (upon the authorization of such party’s Board of Directors),
and except as provided below, whether before or after receipt of Company Stockholder Approval:

          (a) by mutual written consent of each of Parent and the Company;

          (b) by either the Company or Parent, if the Merger shall not have been consummated by
March 31, 2009; provided, however, that if the Closing shall not have occurred by March 31, 2009,
but on such date, all of the conditions to Closing set forth in Article VII (except those
conditions that by their nature are only to be satisfied as of the Closing), other than the
condition set forth in Section 7.1(c) have been satisfied or waived in writing, then
neither party shall be permitted to terminate the Agreement pursuant to this Section 8.1(b)
until June 30, 2009, (such applicable date, the “End Date”); provided, further,
that the right to terminate this Agreement under this Section 8.1(b) shall not be available
to any party whose action or failure to act has been a principal cause of or resulted in the
failure of the Merger to occur on or before such date;

          (c) by either the Company or Parent, if any Legal Requirement makes the consummation of the
Merger illegal, or if a Governmental Entity of competent jurisdiction shall have issued an order,
decree or ruling or taken any other action (including the failure to have taken an action), in any
case having the effect of permanently restraining, enjoining or otherwise prohibiting the Merger,
which order, decree, ruling or other action is final and nonappealable; provided,
however, that the right to terminate this Agreement under this Section 8.1(c) shall
not be available to any party whose action or failure to act has been a principal cause of or
resulted in such Legal Requirement or action;

          (d) by either the Company or Parent, if the Company Stockholder Approval shall not have been
obtained by reason of the failure to obtain the Company Stockholder Approval at a meeting of the
Company stockholders duly convened therefore or at any adjournment or postponement thereof;

          (e) by Parent (at any time prior to the time the Company Stockholder Approval has been
obtained), if a Triggering Event with respect to the Company or a material breach of
Section 6.2 or Section 6.3 of this Agreement shall have occurred;

          (f) by the Company, upon a breach of any representation, warranty, covenant or agreement on
the part of Parent set forth in this Agreement, or if any representation or warranty of Parent
shall have become untrue, in either case such that the conditions set forth in
Section 7.3(a) or Section 7.3(b) would not be satisfied as of the time of such
breach or as of the time such representation or warranty shall have become untrue; provided
that if such inaccuracy in Parent’s representations and warranties or breach by Parent is curable
by Parent prior to the End Date through the exercise of reasonable efforts, then the Company may
not terminate this Agreement under this Section 8.1(f) prior to twenty (20) days following
the receipt of written notice from the Company to Parent of such breach, provided that
Parent continues to exercise commercially reasonable efforts to cure such breach through such
twenty (20) day period (it being understood that the Company may not terminate this Agreement
pursuant to this paragraph (f) if it shall have materially breached this Agreement or if such
breach by Parent is cured within such twenty (20) day period);

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          (g) by Parent, upon a breach of any representation, warranty, covenant or agreement on the
part of the Company set forth in this Agreement, or if any representation or warranty of the
Company shall have become untrue, in either case such that the conditions set forth in
Section 7.2(a) or Section 7.2(b) would not be satisfied as of the time of such
breach or as of the time such representation or warranty shall have become untrue,
provided, that if such inaccuracy in the Company’s representations and warranties or breach
by the Company is curable by the Company prior to the End Date through the exercise of reasonable
efforts, then Parent may not terminate this Agreement under this Section 8.1(g) prior to
twenty (20) days following the receipt of written notice from Parent to the Company of such breach,
provided that the Company continues to exercise commercially reasonable efforts to cure
such breach through such twenty (20) day period (it being understood that Parent may not terminate
this Agreement pursuant to this paragraph (g) if it shall have materially breached this Agreement
or if such breach by the Company is cured within such twenty (20) day period); and

          (h) by the Company, in connection with a Change of Recommendation made in accordance with
Section 6.3(d) in which (i) the Company’s Board of Directors shall have determined to
accept or enter into a transaction related to a Superior Proposal that was the subject of such
Change in Recommendation, or (ii) (x) the Company’s Board of Directors shall have made such Change
of Recommendation as a result of an Intervening Event, and (y) Parent shall not have timely
delivered to the Company a Continuation Notice in accordance with Section 6.3(e);
provided, however, that the Company shall not terminate this Agreement pursuant to
this clause (h), and any purported termination pursuant to this clause (h) shall be void and of no
force or effect, unless in advance of or concurrently with such termination the Company pays the
Termination Fee in the manner provided for in Section 8.3(b).

For the purposes of this Agreement, a “Triggering Event” shall be deemed to have occurred if:
(i) the Company’s Board of Directors or any committee thereof shall have effected a Change of
Recommendation; (ii) the Company shall have failed to include in the Proxy Statement mailed to the
Company’s stockholders the recommendation of its Board of Directors in favor of the adoption of
this Agreement; (iii) the Company’s Board of Directors fails to reaffirm (publicly, if so
requested) its recommendation in favor of the adoption of this Agreement within five (5) calendar
days after Parent delivers to the Company a request in writing that such recommendation be
reaffirmed; (iv) the Company’s Board of Directors or any committee thereof shall have approved or
recommended, or the Company shall have entered into any letter of intent or other agreement or
Contract regarding, any Alternative Transaction Proposal, (v) the Company shall have entered into
any letter of intent or similar document or any agreement, contract or commitment accepting any
Alternative Transaction Proposal; or (vi) a tender or exchange offer relating to its securities
shall have been commenced by a Person unaffiliated with Parent and the Company shall not have sent
to its security holders pursuant to Rule 14e-2 promulgated under the Securities Act, within ten
(10) Business Days after such tender
or exchange offer is first published, sent or given, a statement disclosing that the Board of
Directors of the Company recommends rejection of such tender or exchange offer.

     8.2 Notice of Termination; Effect of Termination. Any termination of this Agreement under, and in accordance with, Section 8.1 above
will be effective immediately upon the delivery of a written notice of the terminating party to the
other party hereto. In the event of the termination of this Agreement as provided in
Section 8.1, this Agreement shall be of no further force or effect, except (i) as set forth
in Section 6.4(a) (Confidentiality), this Section 8.2, Section 8.3 (Fees)
and Article IX (General Provisions), each of which shall survive the termination of this
Agreement and (ii) nothing herein shall relieve any party from liability for any fraud or willful
breach of any representation, warranty, covenant or other agreement contained in this Agreement.
No termination of this Agreement shall affect the obligations of the parties

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contained in the
Confidentiality Agreement, all of which obligations shall survive termination of this Agreement in
accordance with their terms.

     8.3 Fees.

          (a) General. Except as set forth in this Section 8.3, all fees and expenses incurred
in connection with this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such expenses whether or not the Merger is consummated; provided,
however, that Parent and the Company shall share equally the filing fee for the
Notification and Report Forms filed with the FTC and DOJ under the HSR Act, and all premerger
notification and reports forms under similar applicable laws of other jurisdictions, in each case
pursuant to Section 6.6(a).

          (b) Company Payment.

               (i) Payment. In the event that this Agreement is terminated by Parent or the Company, as
applicable, pursuant to Sections 8.1(b), (d), (e), (g ) or
(h), the Company shall promptly, but in no event later than two (2) Business Days after the
date of such termination, pay Parent the Termination Fee by wire transfer to an account designated
by Parent in immediately available funds; provided, that in the case of termination under
Sections 8.1(b), 8.1(d) or 8.1(g): (x) such payment shall be made only if
following the date hereof and prior to the termination of this Agreement, there has been disclosure
publicly or to any member of the Board of Directors or any officer of the Company of an Alternative
Transaction Proposal with respect to the Company and within twelve (12) months following the
termination of this Agreement an Acquisition of the Company is consummated or the Company enters
into an agreement providing for, or a letter of intent, memorandum of understanding, term sheet or
similar arrangement contemplating, an Acquisition of the Company, and (y) such payment shall be
made concurrently with the consummation of such Acquisition of the Company or the entry into such
agreement or letter of intent or similar arrangement by the Company, as applicable.

               (ii) The Company acknowledges that the agreements contained in this Section 8.3 are an
integral part of the transactions contemplated by this Agreement, that without these agreements
Parent would not have entered into this Agreement, and that any amounts payable pursuant to this
Section 8.3 do not constitute a penalty. Upon payment of the Termination Fee in accordance
with this Section 8.3, the Company shall have no further liability to Parent or Merger Sub
with respect to this Agreement or the transactions contemplated hereby, except for liability for
any fraud or willful breach of any
covenant or agreement contained in this Agreement. In the event that the Company shall fail
to pay the Termination Fee when due, the Company shall reimburse Parent for all costs and expenses
incurred by Parent or Merger Sub (including fees and expenses of counsel) in connection with the
collection under and enforcement of this Section 8.3, together with interest on the amounts
set forth in this Section 8.3(b) at the prime rate of Citibank, N.A., in effect on the date
such payment was required to be made. For the avoidance of doubt, in no event will more than one
termination fee be owed by the Company to Purchaser.

     8.4 Amendment. Subject to applicable law, this Agreement may be amended by the parties hereto, by action
taken or authorized by their respective Boards of Directors, at any time before or after approval
of the Merger by the stockholders of the Company, provided, that after receipt of Company
Stockholder Approval, no amendment shall be made which by law or in accordance with the rules of
any relevant stock exchange, including the NASDAQ Global Select Market, requires further approval
by the stockholders of the Company without such further stockholder approval. This Agreement may
not be amended except by execution of an instrument in writing signed on behalf of each of Parent,
Merger Sub and

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the Company and duly approved by the parties’ respective Boards of Directors or a
duly designated committee thereof.

     8.5 Extension; Waiver. At any time prior to the Effective Time either party hereto, by action taken or authorized
by their respective Board of Directors, may, to the extent legally allowed: (i) extend the time for
the performance of any of the obligations or other acts of the other parties hereto, (ii) waive any
inaccuracies in the representations and warranties made to such party contained herein or in any
document delivered pursuant hereto, and (iii) waive compliance with any of the agreements or
conditions for the benefit of such party contained herein. Any agreement on the part of a party
hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing
signed on behalf of such party. Any extension or waiver given in compliance with this
Section 8.5 or failure to insist on strict compliance with an obligation, covenant,
agreement or condition shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.

ARTICLE IX

GENERAL PROVISIONS

     9.1 Non-Survival of Representations and Warranties. The representations and warranties of the Company, Parent and Merger Sub contained in this
Agreement, or any instrument delivered pursuant to this Agreement, shall terminate at the Effective
Time, and only the covenants that by their terms survive the Effective Time and this
Article IX shall survive the Effective Time.

     9.2 Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly
given (i) on the date of delivery if delivered personally and/or by messenger service, (ii) on the
date of confirmation of receipt (or, the first Business Day following such receipt if the date is
not a Business Day) of transmission by facsimile, or (iii) on the date of confirmation of receipt
(or, the first Business Day following such receipt if the date is not a Business Day) if delivered
by a nationally recognized courier service. All notices hereunder
shall be delivered as set forth below, or pursuant to such other instructions as may be
designated in writing by the party to receive such notice:

     (a) if to Parent or Merger Sub, to:

McAfee, Inc.

3965 Freedom Circle

Santa Clara, California 95054

Attention:        Vice President—Corporate Development

Facsimile No.: (408) 346-3314

with copies to:

McAfee, Inc.

3965 Freedom Circle

Santa Clara, California 95054

Attention:        General Counsel

Facsimile No.: (408) 346-3314

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and:

Wilson Sonsini Goodrich & Rosati

Professional Corporation

650 Page Mill Road

Palo Alto, California 94304-1050

Attention:            Jeffrey D. Saper, Esq.

                             Lawrence M. Chu, Esq.

Telephone No.:   (650) 493-9300

Telecopy No.:     (650) 493-6811

if to the Company, to:

Secure Computing Corporation

2340 Energy Park Drive

St. Paul, MN 55108

Attn:                  General Counsel

Telephone No.: (651) 628-5378

Facsimile:          (651) 628-2714

with copies to:

Dorsey & Whitney, LLP

50 South Sixth Street

Minneapolis, MN 55402

Attention:           Matthew Knopf, Esq.

Telephone No.: (612) 340-5603

Telecopy No.:   (612) 340-7800

     9.3 Interpretation; Rule of Construction. When a reference is made in this Agreement to Exhibits, such reference shall be to an
Exhibit to this Agreement unless otherwise indicated. When a reference is made in this Agreement
to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated.
When a reference is made in this Agreement to Articles, such reference shall be to an Article of
this Agreement unless otherwise indicated. The words “include”, “includes” and “including” when
used herein shall be deemed in each case to be followed by the words “without limitation”. The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
All terms defined in this Agreement shall have the defined meanings when used in any certificate or
other document made or delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of such term. The
headings contained in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement. References to the Subsidiaries of an entity
shall be deemed to include all direct and indirect Subsidiaries of such entity. References to a
Person are also to its permitted successors and assigns. Any agreement, instrument or statute
defined or referred to herein or in any agreement or instrument that is referred to herein means
such agreement, instrument or statute as from time to time amended, modified or supplemented,
including (in the case of agreements or instruments) by waiver or consent and (in the case of
statutes) by succession of comparable successor statutes and references to all attachments thereto
and instruments incorporated therein. Any dollar thresholds set forth

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herein shall not be used as
a benchmark for any determination of what is or is not “material” or a “Material Adverse Effect”
under this Agreement. The parties hereto agree that they have been represented by legal counsel
during the negotiation and execution of this Agreement and, therefore, waive the application of any
law, regulation, holding or rule of construction providing that ambiguities in an agreement or
other document shall be construed against the party drafting such agreement or document.

     9.4 Counterparts. This Agreement may be executed and delivered (including by facsimile transmission or by
electronic mail with a pdf scanned attachment) in one or more counterparts, and by the different
parties hereto in separate counterparts, each of which when executed and delivered shall be deemed
to be an original but all of which taken together shall constitute one and the same agreement.

     9.5 Entire Agreement; Third-Party Beneficiaries. This Agreement and the documents and instruments and other agreements among the parties
hereto as contemplated by or referred to herein, including the Company Disclosure Letter and other
Exhibits hereto (i) constitute the entire agreement among the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, both written and oral, among
the parties with respect to the subject matter hereof, it being understood that the Confidentiality
Agreement shall continue in full force and effect until the Closing and shall survive any
termination of this Agreement and (ii) are not intended to confer upon any other Person any rights
or remedies hereunder, except as specifically provided, following the Effective Time, in
Section 6.10.

     9.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced by any applicable law or public policy, all other terms and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of
the transactions contemplated by this Agreement is not affected in any manner materially adverse to
any party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated by this Agreement are consummated as
originally contemplated to the greatest extent possible.

     9.7 Other Remedies. Except as otherwise provided herein, any and all remedies herein expressly conferred upon a
party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by
law or equity upon such party, and the exercise by a party of any one remedy will not preclude the
exercise of any other remedy. The parties hereto agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that, prior to the termination
of this Agreement in accordance with Article VIII, each party shall be entitled to seek an
injunction or injunctions to prevent breaches of this Agreement or to seek to enforce specifically
the terms and provisions of this Agreement in the Court of Chancery of the State of Delaware (or,
in the case of any claim as to which the federal courts have exclusive subject matter jurisdiction,
the Federal Court of the United States of America, sitting in Delaware), this being in addition to
any other remedy to which they are entitled at law or equity.

     9.8 Governing Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Delaware. In any action or proceeding between any of the parties arising out of or
relating to this Agreement or any of the transactions contemplated by this Agreement, each of the
parties hereto: (i) irrevocably and unconditionally consents and submits, for itself and its
property, to the exclusive jurisdiction and venue of the Court of Chancery of the State of Delaware
(or, in the case of any claim as to which the federal courts have exclusive subject matter
jurisdiction, the Federal court of the United States of America, sitting in Delaware); (ii) agrees
that all claims in respect of such action

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or proceeding must be commenced, and may be heard and
determined, exclusively in the Court of Chancery of the State of Delaware (or, if applicable, such
Federal court); (iii) waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any such action or
proceeding in the Court of Chancery of the State of Delaware (and, if applicable, such Federal
court); and (iv) waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in the Court of Chancery of the State of
Delaware (or, if applicable, such Federal court). Each of the parties hereto agrees that a final
judgment in any such action or proceeding and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Each party to this Agreement irrevocably consents
to service of process in the manner provided for notices in Section 9.2. Nothing in this
Agreement shall affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

     9.9 Assignment. No party may assign either this Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other parties, except that Parent may assign
its rights and delegate its obligations hereunder to its affiliates as long as Parent remains
ultimately liable for all of Parent’s obligations
hereunder. Any purported assignment in violation of this Section 9.9 shall be void.
Subject to the preceding sentence, this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and permitted assigns.

     9.10 Waiver of Jury Trial. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B)
EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES
THIS WAIVER VOLUNTARILY AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.10.

*****

-70-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized respective officers as of the date first written above.

	 	 	 	 	 
	 	MCAFEE, INC.

 	 
	 	By:  	/s/ Albert A. Pimentel
 	 
	 
	 	Name:  	Albert A. Pimentel 	 
	 
	 	Title:  	Chief Operating Officer and Chief
Financial Officer 
	 

	 	 	 	 	 
	 	SEABISCUIT ACQUISITION CORPORATION

 	 
	 	By:  	/s/ Keith Krzeminski
 	 
	 
	 	Name:  	Keith Krzeminski 	 
	 
	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	SECURE COMPUTING CORPORATION

 	 
	 	By:  	/s/ Daniel P. Ryan
 	 
	 
	 	Name:  	Daniel P. Ryan 	 
	 
	 	Title:  	President and Chief Executive Officer 	 
	 

****AGREEMENT AND PLAN OF MERGER****

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