Document:

EX-10.1

 Exhibit 10.1 

CONFIDENTIALITY, NON-COMPETITION AND NON-SOLICITATION 

AGREEMENT 
 THIS
CONFIDENTIALITY, NON-COMPETITION AND NON-SOLICITATION AGREEMENT (“Agreement”), by and between Ryerson Holding Corporation (the “Corporation” or “Ryerson”) and Edward J. Lehner (the “Executive”), is entered
into this 1st day of June, 2015. 
 The Corporation desires to appoint the Executive to the position of President and Chief Executive
Officer in accordance with the terms of the Letter Agreement, dated May 7, 2015, by and between Ryerson and the Executive (the “Letter Agreement”), reporting to the Corporation’s Board of Directors, and the Executive desires to
accept such appointment. In that employment, the Executive will be entrusted with knowledge of the Corporation’s business and operational methods. The Corporation wishes to protect its business and operational methods through the restrictions
and covenants specified herein. The Executive recognizes that the Corporation’s business and operational methods require protection, and the Executive is willing to protect the Corporation’s business and operational methods through the
restrictions and covenants specified herein. 
 NOW, THEREFORE, the Executive and the Corporation hereby agree as follows. 

 

	 	1.	Position and Duties. Subject to the terms and conditions of this Agreement, the Executive’s position, duties and terms of employment shall be as set forth in the Letter Agreement. The Executive shall
perform all assigned duties to the best of his abilities in a diligent, trustworthy, businesslike and efficient manner. 

  

	 	2.	Compensation and Benefits. Subject to the terms and conditions of this Agreement, while the Executive is employed by the Corporation, the Executive shall be compensated and provided certain benefits for
services as described in the Letter Agreement. 

  

	 	3.	Rights and Payments Upon Termination. The Executive’s right to benefits and payments, if any, for periods after the date the Executive’s employment with the Corporation terminates for any reason
(the “Termination Date”) shall be determined in accordance with this Paragraph 3: 

  

	 	(A)	Termination by the Corporation for Reasons Other Than Cause; Termination by the Executive for Good Reason. If the Corporation terminates the Executive’s employment for reasons other than Cause or as a
result of termination by the Executive for Good Reason, then for the period (the “Benefit Period”) commencing on the Executive’s Termination Date and ending on the earliest of: 

  
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	 	(i)	the eighteenth month after the Termination Date; 

  

	 	(ii)	the date the Executive violates or initiates any legal challenge to the provisions of Paragraphs 4, 5 or 6 of this Agreement; or 

  

	 	(iii)	the date of the Executive’s death or the date the Executive is determined to be eligible for benefits under the Corporation’s Long Term Disability Plan; 

the Executive shall continue to receive from the Corporation a lump sum or periodic payments, in accordance with the Corporation’s
regular payroll schedule, based on his Annual Base Salary, and certain other benefits in effect as of the Termination Date; provided, however that to the extent that any such periodic payments would exceed the separation pay exemption pursuant to
United States Treasury (“Treasury”) regulation §1.409A-1(b)(9)(iii), such payments shall be made in a lump sum prior to the short-term deferral period described in Treasury regulation §1.409A-1(b)(4). 

Such continued periodic base salary payments shall be made on the regularly scheduled pay dates following the Executive’s Termination
Date. Notwithstanding the foregoing provisions of this paragraph 3 (A), this Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and shall be interpreted
and construed consistently with such intent. All references in this Agreement to the Executive’s termination of employment shall mean his separation from service within the meaning of Section 409A of the Code and Treasury regulations
promulgated thereunder. Payments provided herein are intended to be exempt from Section 409A of the Code to the maximum extent possible, under either the separation pay exemption pursuant to Treasury regulation §1.409A-1(b)(9)(iii) or as
short-term deferrals pursuant to Treasury regulation §1.409A-1(b)(4). Each payment and benefit hereunder shall constitute a “separately identified” amount within the meaning of Treasury regulation §1.409A-2(b)(2). Any payment
that is deferred compensation subject to Section 409A of the Code which is conditioned upon Employee’s execution of a release and which is to be paid during a designated period that begins in one taxable year and ends in a second taxable
year shall be paid in the second taxable year. In the event the terms of this Agreement would subject the Executive to taxes or penalties under Section 409A of the Code (“409A 

  
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Penalties”), the Corporation and the Executive shall cooperate diligently to amend the terms of the Agreement to avoid such 409A Penalties, to the extent possible; provided that in no event
shall the Corporation be responsible for any 409A Penalties that arise in connection with any amounts payable under this Agreement. If the Executive is a “specified employee” (within the meaning of Section 409A of the Internal Revenue
Code of 1986, as amended) on the Termination Date and payments under this Agreement do not qualify for any of the exceptions to Code Section 409A, then the first payment of continued Annual Base Salary shall not be made until the first
regularly scheduled pay date that is six months after the Termination Date. Such pay shall consist of (a) an initial payment equal to the sum of (1) the total periodic payments the Executive would have been entitled to receive during the
first six months following the Termination Date, if the Executive were not a specified person, plus (2) the first periodic payment due in the seventh month following the Termination Date, and (b) subsequent to the initial payment, periodic
payments based on his Annual Base Salary, to the extent not paid with the initial payment. 
 Benefits provided under the terms of this
Paragraph 3(A) shall consist of subsidized COBRA continuation of medical and dental coverage. All other benefits shall be terminated on the Termination Date. To retain eligibility for medical and dental benefit coverage, the Executive must pay
premiums equivalent to the amounts required of active employee participants in these benefit plans. The Corporation has determined that these additional health benefits are not discriminatory as defined in Code Section 105(h). 

For the avoidance of doubt, Executive shall not be entitled to any benefits under the Corporation Severance Plan or any other severance
benefits from the Corporation not specified herein. 
 All payments to the Executive subsequent to a termination of the Executive by the
Corporation for reasons other than Cause or termination by the Executive for Good Reason are subject to and conditioned on the Executive signing (and not revoking) a Separation and Release Agreement in a form agreed between the parties (the
“Separation Agreement”) within sixty days of the Executive’s termination of employment. Additionally, none of the payments to the Executive subsequent to a termination of the Executive by the Corporation for reasons other than Cause
or termination by the Executive for Good Reason which are provided for in this Agreement will be paid unless and until the Executive has signed the Separation Agreement and the time period for the Executive to consider and not revoke the Separation
Agreement has passed. 

  
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	 	(B)	Termination By Corporation for Cause. If the Corporation terminates the Executive’s employment for Cause, then except as agreed in writing between the Executive and the Corporation, the
Executive shall be entitled to receive only compensation and benefits earned up to the Date of Termination. The Executive shall not be entitled to receive any payments or benefits under this Agreement or otherwise with respect to the period after
the Executive’s Termination Date and the Corporation shall have no obligation to make any additional payments or provide any other benefits with respect to the period after the Executive’s Termination Date. 

 

	 	(C)	Termination for Death or Disability. If the Executive’s termination is caused by the Executive’s death or permanent disability (as that term is defined under the Corporation’s Long Term
Disability Plan), then the Executive (or in the event of his death, his estate) shall be entitled to continued payments of Annual Base Salary for the period commencing on the Termination Date and ending on the earlier of (i) the last day of the
calendar month in which his Termination Date occurs; (ii) the date on which the Executive violates the provisions of Paragraphs 4, 5 or 6 of this Agreement; (iii) the date of the Executive’s death; or (iv) the date of the
Executive’s permanent disability. 

  

	 	(D)	Termination for Voluntary Resignation or Other Reasons. If the Executive’s termination occurs on account of his voluntary resignation or for any reason other than those specified in Paragraphs (A),
(B) or (C) above, then, except as agreed in writing between the Executive and the Corporation, the Executive shall not be entitled to receive any payments or benefits under this Agreement or otherwise with respect to the period after the
Executive’s Termination Date and the Corporation shall have no obligation to make any additional payments or provide any additional benefits with respect to the period after the Executive’s Termination Date. The Executive’s
termination of employment for Good Reason shall not be treated as a voluntary resignation for purposes of this Agreement. 

  

	 	(E)	Definitions. For purposes of this Agreement: 

 (i) The term “Cause”
shall mean: (a) the Executive’s conviction of or indictment for any crime (whether or not involving the Corporation or its affiliates) (i) constituting a felony or (ii) that has, or could reasonably be expected to result in, an
adverse impact on the performance of the Participant’s duties to the Corporation, or otherwise has, or could reasonably be expected to result in, an adverse impact on the business or reputation of the Corporation or its affiliates,
(b) conduct of the Executive, in connection with his employment or service, that has resulted, or could reasonably be expected to result, in material injury to the business or reputation of the Corporation or its affiliates,

  
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(c) any material violation of the policies of the Corporation or its affiliates, including but not limited to those relating to sexual harassment or the disclosure or misuse of confidential
information, or those set forth in the manuals or statements of policy of the Corporation or its affiliates, (d) willful neglect in the performance of the Executive’s duties for the Corporation or willful or repeated failure or refusal to
perform such duties, or (e) the Executive’s violation of the provisions of Paragraphs 4, 5 or 6 hereof. 
 (ii) The term
“Good Reason” shall mean: if, without the Executive’s prior written agreement: (1) the Executive’s base salary is materially reduced; (2) the Executive’s participation in the Corporation’s annual incentive
plan is discontinued; and/or (3) the Executive is assigned duties materially inconsistent with his status or position. 
 In order to assert a
termination for Good Reason, Executive must give the written notice required in Paragraph 4 within thirty (30) days after an event described in Paragraph 3 E (ii) occurs, and the Corporation will have thirty (30) days to cure the
issue addressed in the notice. The written notice must include the date that the Executive’s termination will be effective (which date may not be more than six months after the initial existence of the Good Reason condition). This time
requirement may only be amended or waived by written agreement of the parties pursuant to Paragraph 23 of this Agreement. 
 Notwithstanding any other
provision of this Agreement or the Letter Agreement, upon the Executive’s termination for any reason, the Executive shall automatically cease to be an employee of the Corporation and its affiliates as of his Termination Date and, to the extent
permitted by applicable law, any and all monies that the Executive owes to the Corporation shall be repaid before any post-termination payments are made to the Executive under this Agreement. 

 

	 	4.	Termination by Executive or Corporation with Notice. Subject to the payment obligations and rights set forth in Paragraph 3 above, the Corporation and the Executive agree that either party may terminate
the Executive’s employment for any or no reason. Each party is obligated to give the other thirty (30) days written notice (the “Notice Period”) before terminating the Executive’s employment relationship, except that no such
notice shall be required in the case of the death of the Executive or the Corporation’s termination of the Executive’s employment for Cause or if the Corporation and the Executive otherwise agree in writing. 

During the Notice Period, the Executive shall (i) meet with the Board of Directors or their designee to wind up any pending work and provide an orderly
transfer to other employees of the duties and responsibilities for which the Executive has been responsible; (ii) work with the Corporation to identify key Confidential Information (as defined in Paragraph 5 below) likely to be in the
Executive’s possession and provide it to the Corporation as instructed; (iii) disclose and discuss the Executive’s future employment plans in light of the Executive’s obligations under this Agreement and the Letter

  
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Agreement; (iv) deliver to the Corporation all property belonging to the Corporation, including any duplicates, copies or abstracts thereof; and (v) devote full time and attention to
these obligations and the Executive’s other responsibilities as directed by the Corporation. Notwithstanding the foregoing, the Corporation may, in its sole discretion, terminate the duties of the Executive at any time during the Notice Period
providing that the Corporation continues to pay the Executive any Base Salary that may be due to the Executive for any portion of such thirty (30) days Notice Period remaining after the Corporation terminates the duties of the Executive. 

 

	 	5.	Confidentiality and Ownership. The Executive acknowledges and agrees that the Confidential Information (as defined in Paragraph 5(A) below) is the property of the Corporation, its subsidiaries and
affiliates. Accordingly, the Executive agrees as follows: 

  

	 	(A)	Confidential Information. Except as may be required by applicable law or the lawful order of a court or regulatory body, or except to the extent that the Executive has express authorization in writing from
the Corporation to do otherwise, the Executive will keep secret and confidential, during the Executive’s employment and at all times thereafter, all Confidential Information and not disclose such Confidential Information, either directly or
indirectly, to any other person, firm or business entity, or to use it in any way. For purposes of this Agreement, “Confidential Information” means all non-public information, observations or data relating to the Corporation, its
subsidiaries or affiliates, its customers and/or vendors and suppliers, which the Executive has learned or will learn during his employment with the Corporation, its subsidiaries or affiliates, whether or not a trade secret within the meaning of
applicable law, including but not limited to: (i) new products and new product development; (ii) marketing strategies and plans, market experience with products, and market research; (iii) manufacturing processes, technologies and
production plans and methods; (iv) formulas, research in progress and unpublished manuals or know how, devices, methods, techniques, processes and inventions; (v) regulatory filings and communications; (vi) identity of and
relationship with licensees, licensors or suppliers; (vi) finances, financial information, and financial management systems; (vii) technological and engineering data; (viii) identities of and information concerning customers, vendors
and suppliers and prospective customers, vendors and suppliers; (ix) development, expansion and business strategies, pricing strategies, plans and techniques; (x) computer programs; (xi) research and development activities;
(xii) litigation and pending litigation; (xiii) personnel information; and (xiv) any other information or documents which the Executive is told or reasonably ought to know the Corporation, its subsidiaries or affiliates regard as
proprietary or confidential. The restrictions set forth in this Paragraph 5(A) shall remain in effect until 18 months after the Termination Date, provided that these restrictions shall remain in effect indefinitely with respect to trade secrets.

  
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	 	(B)	Upon the Executive’s Termination Date or at the Corporation’s earlier request, the Executive will promptly return to the Corporation any and all records, documents, data, memoranda, reports, physical property,
information, computer disks, tapes or software or other materials, and all copies thereof, relating to the business of the Corporation and its subsidiaries and affiliates obtained by the Executive during his employment with the Corporation, its
subsidiaries or affiliates. The Executive further agrees to deliver to the Corporation, at its request, any computer(s) in the Executive’s possession or control, regardless of who owns the computer, on which is stored, in any way, any
Confidential Information for the purpose of ensuring that all Confidential Information stored on the computer(s) has been delivered to the Corporation. 

  

	 	(C)	The Executive agrees that all inventions, innovations, discoveries, improvements, developments, trade secrets, processes, procedures, methods, designs, analyses, drawings, reports, and all similar or related information
which relates to the Corporation’s or any of its subsidiaries’ or affiliates’ actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made, in whole or
in part, by the Executive while employed by the Corporation or its subsidiaries or affiliates (“Work Product”) belong to the Corporation or such subsidiary or affiliate. The Executive shall promptly inform the Corporation of such Work
Product, and shall execute such assignments as may be necessary to transfer to the Corporation or its affiliates the benefits of the Work Product. This Paragraph applies to any Work Product which the Executive may do for or at the request of the
Corporation, whether alone or with others, whether conceived by the Executive while at work, on the Executive’s non-work time or off the premises of the Corporation, including such of the foregoing items conceived during the course of
employment which are developed or perfected after the Executive’s Termination Date. The Executive shall assist the Corporation or its nominee, to obtain patents, trademarks and service marks and the Executive agrees to execute all documents and
to take all other actions which are necessary or appropriate to secure to the Corporation and its subsidiaries and affiliates the benefits thereof. Such patents, trademarks and service marks shall become the property of the Corporation and its
affiliates. The Executive shall deliver to the Corporation all sketches, drawings, models, figures, plans, outlines, descriptions or other information with respect thereto. 

  
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	 	(D)	To the extent that any court or agency seeks to have the Executive disclose Confidential Information, the Executive shall immediately inform the Corporation, and the Executive shall take such reasonable steps to prevent
disclosure of Confidential Information until the Corporation has been informed of such requested disclosure. To the extent that the Executive obtains information on behalf of the Corporation or any of its affiliates that may be subject to
attorney-client privilege as to the Corporation’s attorneys, the Executive shall take reasonable steps to maintain the confidentiality of such information and to preserve such privilege. 

 

	 	(E)	Nothing in the foregoing provisions of this Paragraph 5 shall be construed so as to prevent the Executive from using, after the Executive’s termination of employment with the Corporation, in connection with his
employment for himself or an employer other than the Corporation or any of its affiliates, knowledge which was acquired by him during the course of his employment with the Corporation and its affiliates, and which is generally known to persons of
his experience in other companies in the same industry. 

  

	 	6.	Noncompetition/Nonsolicitation. The Executive acknowledges that the industry in which the Corporation is engaged is an international business which is highly competitive and that the Executive is a key
executive of the Corporation. The Executive further acknowledges that as a result of his senior position within the Corporation, he has acquired and will acquire extensive Confidential Information and knowledge of the Corporation’s business and
the industry in which it operates and will develop relationships with and knowledge of customers, employees, vendors and suppliers of the Corporation and its subsidiaries and affiliates. Accordingly, the Executive agrees that during the time the
Executive is employed by the Corporation, its subsidiaries or affiliates (the “Employment Period”) and for a period of 18 (eighteen) months after the Termination Date (the “Restricted Period”): 

 

	 	(A)	The Executive will not directly or indirectly, own, operate, manage, control, participate, consult with, advise, or have any financial interest (whether for himself or for any other person and whether as proprietor,
principal, stockholder, partner, agent, director, officer, employee, consultant, independent contractor or in any other capacity), in any Competitor of the Corporation, or in any manner engage in the start-up of a business (including by himself or
in association with any person, firm, corporate or other business organization through any other entity) in competition with the Corporation’s business provided that this shall not prevent the Executive from ownership of 1% or less of the
outstanding stock of any corporation listed on the New York or American Stock Exchange or included in the National Association of Securities Dealers Automated Quotation System or ownership of securities in any entity affiliated with the Corporation.
“Competitor” refers to a person or entity, including metals-related Internet marketplaces, engaged in the metal service center processing and/or distribution business. 

  
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	 	(B)	The Executive will not directly or indirectly contact, call upon, solicit business from, or sell any products sold or distributed by the Corporation to any customer or prospective customer of the Corporation with whom
employees of the Corporation had contact during the Employment Period. 

  

	 	(C)	The Executive will not directly or indirectly either alone or in cooperation with others, encourage any employees of the Corporation to seek or accept an employment or business relationship with a person or entity other
than the Corporation, or in any way interfere with the relationship of the Corporation and any subsidiary or affiliate and any employee thereof, including without limitation, to hire, solicit for hire, or discuss or encourage the employment of, any
of the employees of the Corporation who were employed by the Corporation during the Employment Period; provided however, this shall not apply to an employee whose employment was terminated by the Corporation before the Termination Date, if such
termination was not caused by any direct or indirect involvement of the Executive or a subsequent employer of the Executive. 

  

	 	(D)	The Executive will not directly or indirectly either alone or in cooperation with others, encourage any supplier, distributor, franchisee, licensee, or other business relation of the Corporation, any subsidiary or
affiliate of the Corporation to cease or curtail doing business with the Corporation, any subsidiary or affiliate of the Corporation, or in any way interfere with the relationship between any such customer, supplier, distributor, franchisee,
licensee or business relation and the Corporation or subsidiary or affiliate. 

 If any restriction set forth in this Agreement is determined
by a court of competent jurisdiction to be unreasonable or unenforceable with respect to scope, time, geographical, customer or other coverage under circumstances then existing, the parties agree that (a) the maximum duration, scope or area
reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law, so as to
provide the maximum legally enforceable protection of the Corporation’s interests as described in this Agreement, without negating or impairing any other restrictions or agreements set forth herein, and (b) the Benefit Period shall be
reduced so as not to exceed any revised Restricted Period. 
  

	 	7.	 No Conflict. The Executive represents that the Executive is not a party to any agreement with any third party containing a
non-competition provision, non-solicitation 

  
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provision, confidentiality provision or any other restriction that would prohibit or restrict the Executive’s employment with the Corporation or any part of the services which the Executive
provides to the Corporation or its clients. Moreover, the Executive represents that the Executive is not limited by any court order or other legal obligation from performing any assigned duties for the Corporation and that the Executive has no
rights which may conflict with the interests of the Corporation or with the Executive’s obligations hereunder. The Executive represents that the Executive does not possess any documents or material containing confidential information from any
prior employer and, to the extent the Executive knows or possesses any such confidential information, the Executive agrees not to disclose it to the Corporation. Finally, the Executive states that he has disclosed to the Corporation all prior
confidentiality, non-solicitation and non-compete agreements which he has entered into with his prior employers. 

  

	 	8.	Change of Title, Duties. The Executive agrees that if, at any time, the Executive’s title or duties is changed by the Corporation, the Executive nevertheless will continue to be bound in all
particulars to the terms and conditions of this Agreement. 

  

	 	9.	Validity. If any one or more of the provisions contained in the Agreement shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be constructed as if such invalid, illegal, or unenforceable provision had never been contained herein. 

 

	 	10.	Reasonableness of Restrictions/Injunctive Relief.  

  

	 	(A)	The Executive acknowledges that his rights to compete and disclose Confidential Information and trade secrets are limited hereby only to the extent necessary to protect the Corporation against unfair competition and
that, in the event the Executive’s employment with the Corporation terminates for any reason, the Executive will be able to earn a livelihood without violating the foregoing restrictions. The Executive acknowledges that the restrictions cited
herein are reasonable and necessary for the protection of the Corporation’s legitimate business interests. 

  

	 	(B)	 The Executive acknowledges that the services to be rendered by the Executive as the President and Chief Executive Officer of Ryerson Holding
Corporation are of a special, unique and extraordinary character and, in connection with such services, the Executive will, by virtue of his senior position with the Corporation, have access to confidential information vital to the
Corporation’s business. The Executive consents and agrees that if the Executive violates any of the provisions of this 

  
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Agreement, the Corporation would sustain irreparable harm and, therefore, in addition to any other remedies which the Corporation may have under this Agreement or otherwise, the Corporation shall
be entitled to an injunction from any court of competent jurisdiction restraining the Executive from committing or continuing any such violation of this Agreement, including, without limitation, restraining the Executive from disclosing, using for
any purpose, selling, transferring or otherwise disposing of, in whole or in part, any trade secrets, Confidential Information, proprietary information, client or customer lists or other information pertaining to the financial condition, business,
manner of operation, affairs, plans or prospects of the Corporation. The Executive acknowledges that damages at law would not be an adequate remedy for violation of this Agreement, and the Executive therefore agrees that the provisions may be
specifically enforced against the Executive in any court of competent jurisdiction. Nothing contained herein shall be construed as prohibiting the Corporation from pursuing any other remedies available to it for such breach or threatened breach,
including the recovery of damages. 

  

	 	(C)	The parties agree that money damages would be inadequate for any breaches of Paragraphs 4, 5 and 6 of this Agreement. Therefore, in the event of a breach or threatened breach of Paragraphs 4, 5 or 6, the Corporation, or
its successors or assigns may, in addition to other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief, to enforce, or prevent any violation of, the
provisions hereof (without posting a bond or other security). 

  

	 	(D)	The Executive agrees that: (i) the covenants set forth in Paragraph 6 are reasonable, (ii) the Corporation would not have entered into this Agreement but for the covenants of the Executive contained in
Paragraph 6, and (iii) the covenants contained in Paragraph 6 have been made in order to induce the Corporation to enter into this Agreement. 

  

	 	11.	Successors and Assigns. This Agreement shall be binding on, and inure to the benefit of, the Corporation and its successors and assigns and any person acquiring, whether by merger, reorganization,
consolidation, or by purchase of all or substantially all of the assets of the Corporation. The Executive agrees that the Corporation may assign its rights and obligations under this Agreement. This Agreement shall be binding upon the Executive,
without regard to the duration of his employment by the Corporation or reasons for the cessation of such employment, and inure to the benefit of his administrators, executors, and heirs, although the obligations of the Executive are personal and may
be performed only by the Executive. The interests of the Executive under this Agreement may not be voluntarily assigned, alienated or encumbered by the Executive or his successors in interest, and any attempt to do so shall be void and of no effect.

  
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	 	12.	Notification. The Executive shall notify all future employers of the existence of Paragraphs 4, 5, 6, 9, 10, 17 and 18 of this Agreement and the terms thereof. The Executive will also provide the
Corporation with information the Corporation may from time to time request to determine the Executive’s compliance with the terms of this Agreement. The Executive hereby authorizes the Corporation to contact the Executive’s future
employers and other parties with whom the Executive has engaged or may engage in any business relationship to determine the Executive’s compliance with this Agreement and to communicate the contents of this Agreement to such employers and
parties. 

  

	 	13.	Cooperation in Certain Matters. The Executive agrees that, during the Employment Period and after the Termination Date, the Executive will cooperate with the Corporation in any current or future or
potential legal, business, or other matters in any reasonable manner as the Corporation may request, including but not limited to meeting with and fully answering the questions of the Corporation or its representatives or agents, and in any legal
matter testifying and preparing to testify at any deposition or trial. The Corporation agrees to compensate the Executive for any reasonable expenses incurred as a result of such cooperation. 

 

	 	14.	Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. 

  

	 	15.	No Mitigation. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of
this Agreement and, except as specifically provided in Paragraph 3(A) hereof, the amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation or benefits earned by the Executive as the result of
employment by another employer. 

  

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

 

	 	17.	Governing Law. In the event of any dispute arising under this Agreement, it is agreed that the law of the State of Illinois shall govern the interpretation, validity, and effect of this Agreement without
regard to the place of performance or execution thereof. 

  

	 	18.	 Enforcement. The Corporation and the Executive hereby submit to the jurisdiction and venue of any state or federal court located within
Cook County, Illinois for resolution of any and all claims, causes of action or disputes arising out of, related to or concerning this 

  
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Agreement and agree that services by registered mail to the addresses set forth below shall constitute sufficient service of process for any such action. The parties further agree that venue for
all disputes between them, including those related to this Agreement, shall be with a state or federal court located within Cook County, Illinois. If the Corporation is required to seek enforcement of any of the provisions of this Agreement, the
Corporation will be entitled to recover from the Executive its reasonable attorneys’ fees plus costs and expenses as to any issues on which it prevails. 

  

	 	19.	Notices. Notices provided for in this Agreement shall be in writing and shall be deemed to have been duly received when delivered in person or sent by facsimile transmission, on the first business day
after it is sent by air express courier service or on the third business day following deposit in the United States registered or certified mail, return receipt requested, postage prepaid and addressed, in the case of the Corporation to the
following address: 

 Ryerson Holding Corporation 

227 West Monroe Street, 27th Floor 

Chicago, IL 60606 
 Attention:
Chief Human Resources Officer 
 or to the Executive: 

Edward J. Lehner 
 
                                         
                
 
                                         
                
 or such other address as either party may have furnished to
the other in writing in accordance herewith, except that a notice of change of address shall be effective only upon actual receipt. 
  

	 	20.	Waiver of Breach. The waiver by either the Corporation or the Executive of a breach of any provision of this Agreement shall not operate as or be deemed a waiver of any subsequent breach by either the
Corporation or the Executive. Continuation of payments hereunder by the Corporation following a breach by the Executive of any provision of this Agreement shall not preclude the Corporation from thereafter terminating said payments based upon the
same violation. 

  
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	 	21.	Survival of Agreement. Except as otherwise expressly provided in this Agreement, the rights and obligations of the parties to this Agreement shall survive the termination of the Executive’s employment
with the Corporation. 

  

	 	22.	Acknowledgment by Executive. The Executive represents to the Corporation that he is knowledgeable and sophisticated as to business matters, including the subject matter of this Agreement, that he has read
this Agreement and that he understands its terms. The Executive acknowledges that, before assenting to the terms of this Agreement, the Executive has been given a reasonable time to review it, to consult with counsel of choice, and to negotiate at
arm’s-length with the Corporation as to the contents. 

  

	 	23.	Other Agreements and Modification. This Agreement may be amended or cancelled only by written mutual Agreement executed by the parties. This Agreement, in conjunction with the Letter Agreement, constitutes
the sole and complete Agreement between the Corporation and the Executive and supersedes all other agreements, both oral and written, between the Corporation and the Executive with respect to the matters contained herein. The parties acknowledge
that other than what is contained in this Agreement, no verbal or other statements, inducements, or representations have been made to or relied upon by the Executive. The parties each represent to the other that they have read and understand this
Agreement. 

  

	 	24	Ambiguities. This Agreement has been negotiated at arms-length between persons knowledgeable in the matters dealt with herein. Accordingly, the parties agree that neither the Corporation nor the Executive
is the drafting party and that any rule of law or any other statutes, legal decisions or common law principles of similar effect that require interpretation of any ambiguities in this Agreement against the party that has drafted it is of no
application and is hereby expressly waived. The provisions of this Agreement shall be interpreted in a reasonable manner to give effect to the intentions of the parties hereto. 

  
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 IN WITNESS WHEREOF, the Executive has hereunto set his hand, and the Corporation has
caused these presents to be executed in its name and on its behalf, as of the date above first written. 
  

							
							RYERSON HOLDING CORPORATION
				
	Dated:		 June 1, 2015
				 /s/ Roger W. Lindsay

							Roger W. Lindsay
							Chief Human Resources Officer
				
	Dated:		 June 1, 2015
				 /s/ Edward J. Lehner

							Edward J. Lehner

  
 -15-Exhibit 4.1

	
 
    

 

 

TELADOC, INC.

 

FIFTH AMENDED AND RESTATED

 

INVESTORS’ RIGHTS AGREEMENT

 

DATED AS OF SEPTEMBER 10, 2014

 

	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
Right of First Refusal
    	
9
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Grant
    	
9
    
	
 
    	
(b)
    	
Notice
    	
9
    
	
 
    	
(c)
    	
Grant of Secondary Refusal Right
    	
10
    
	
 
    	
(d)
    	
Sale of Transfer Stock
    	
11
    
	
 
    	
(e)
    	
Consideration; Closing
    	
11
    
	
 
    	
(f)
    	
Termination
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Right of Co-Sale
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Grant
    	
11
    
	
 
    	
(b)
    	
Pro Rata Reduction
    	
12
    
	
 
    	
(c)
    	
Deliveries
    	
12
    
	
 
    	
(d)
    	
Purchase and Sale Agreement
    	
12
    
	
 
    	
(e)
    	
Consideration
    	
12
    
	
 
    	
(f)
    	
Time Period for Closing
    	
13
    
	
 
    	
(g)
    	
Termination
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Effect of Failure to Comply
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Transfers Void
    	
13
    
	
 
    	
(b)
    	
Cancellation of Stock
    	
13
    
	
 
    	
(c)
    	
Prohibited Transfers
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
Exempt Transfers
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Permitted Transfers
    	
14
    
	
 
    	
(b)
    	
Repurchase by the Company
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Legends
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Legends
    	
15
    
	
 
    	
(b)
    	
Instructions to Transfer Agent
    	
16
    
	
 
    	
(c)
    	
Company’s Placement of Restrictions
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Voting Agreement
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Voting
    	
16
    
	
 
    	
(b)
    	
Designation of Directors
    	
17
    
	
 
    	
(c)
    	
Current Designees
    	
19
    
	
 
    	
(d)
    	
Changes in Designees
    	
19
    

 

i

 

TABLE OF CONTENTS
 (Continued)

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(e)
    	
Increase in Authorized Capital Stock
    	
20
    
	
 
    	
(f)
    	
Method of Voting
    	
20
    
	
 
    	
(g)
    	
No Liability for Election of Recommended Directors
    	
20
    
	
 
    	
(h)
    	
Specific Enforcement
    	
20
    
	
 
    	
(i)
    	
Termination
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Registration Rights
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Request for Registration
    	
21
    
	
 
    	
(b)
    	
Company Registration
    	
23
    
	
 
    	
(c)
    	
Obligations of the Company
    	
23
    
	
 
    	
(d)
    	
Furnish Information
    	
25
    
	
 
    	
(e)
    	
Expenses of Demand Registration
    	
25
    
	
 
    	
(f)
    	
Expenses of Company Registration
    	
25
    
	
 
    	
(g)
    	
Underwriting Requirements
    	
26
    
	
 
    	
(h)
    	
Delay of Registration
    	
26
    
	
 
    	
(i)
    	
Indemnification
    	
27
    
	
 
    	
(j)
    	
Reports Under Exchange Act
    	
29
    
	
 
    	
(k)
    	
Form S-3 Registration
    	
29
    
	
 
    	
(l)
    	
Assignment of Registration Rights
    	
31
    
	
 
    	
(m)
    	
Limitations on Subsequent Registration Rights
    	
31
    
	
 
    	
(n)
    	
“Market Stand-Off” Agreement
    	
31
    
	
 
    	
(o)
    	
Termination of Registration Rights
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
Right of First Offer
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Right of First Offer
    	
32
    
	
 
    	
(b)
    	
Directed IPO Shares
    	
33
    
	
 
    	
(c)
    	
Termination
    	
34
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
Drag-Along Rights
    	
34
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Actions to be Taken
    	
34
    
	
 
    	
(b)
    	
Exceptions
    	
35
    
	
 
    	
(c)
    	
Restrictions on Sales of Control of the Company
    	
36
    
	
 
    	
(d)
    	
Termination
    	
36
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
Redemption of Investors’ Common Stock
    	
36
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Series B Investors’ Common Stock
    	
36
    
	
 
    	
(b)
    	
Series A Investors’ Common Stock
    	
37
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
Additional Covenants
    	
37
    

 

ii

 

TABLE OF CONTENTS
 (Continued)

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
D & O Insurance
    	
37
    
	
 
    	
(b)
    	
Financial and Business Information
    	
38
    
	
 
    	
(c)
    	
Books and Records; Inspection
    	
39
    
	
 
    	
(d)
    	
Board of Directors
    	
40
    
	
 
    	
(e)
    	
Vesting of Awards under the Stock Incentive Plan;   Acceleration Upon Change of Control
    	
40
    
	
 
    	
(f)
    	
Successor Indemnification
    	
40
    
	
 
    	
(g)
    	
Securities Laws Compliance
    	
41
    
	
 
    	
(h)
    	
Publicity
    	
41
    
	
 
    	
(i)
    	
Key Man Insurance
    	
41
    
	
 
    	
(j)
    	
Parties to Agreement
    	
41
    
	
 
    	
(k)
    	
No “Bad Actor” Disqualification.
    	
41
    
	
 
    	
(l)
    	
Treatment of Dividend Conversion Stock
    	
42
    
	
 
    	
(m)
    	
Termination of Covenants
    	
42
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
Miscellaneous
    	
42
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Transfers, Successors and Assigns
    	
42
    
	
 
    	
(b)
    	
Governing Law
    	
43
    
	
 
    	
(c)
    	
Counterparts
    	
43
    
	
 
    	
(d)
    	
Titles and Subtitles
    	
43
    
	
 
    	
(e)
    	
Costs of Enforcement
    	
43
    
	
 
    	
(f)
    	
Amendments and Waivers
    	
43
    
	
 
    	
(g)
    	
Severability
    	
44
    
	
 
    	
(h)
    	
Aggregation of Stock
    	
44
    
	
 
    	
(i)
    	
Entire Agreement
    	
44
    
	
 
    	
(j)
    	
Delays or Omissions; Remedies Cumulative
    	
44
    
	
 
    	
(k)
    	
No Strict Construction
    	
45
    
	
 
    	
(l)
    	
Further Instruments
    	
45
    
	
 
    	
(m)
    	
Notices
    	
45
    
	
 
    	
(n)
    	
Covenants of the Company
    	
45
    
	
 
    	
(o)
    	
Ownership
    	
46
    
	
 
    	
(p)
    	
As-Converted Basis
    	
46
    

 

	
EXHIBIT A – SCHEDULE OF   INVESTORS
    	
A-1
    
	
EXHIBIT B – SCHEDULE OF   CURRENT HOLDERS
    	
B-1
    
	
EXHIBIT C – JOINDER   AGREEMENT
    	
C-1
    

 

iii

 

TELADOC, INC.

 

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

THIS FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is made as of September 10, 2014, by and among TELADOC, INC. a Delaware corporation (the “Company”), each of the Investors (as defined below) identified on Exhibit A and each of the Current Holders (as defined below) identified on Exhibit B.

 

R E C I T A L S

 

WHEREAS, certain of the Investors and Current Holders hold shares of the Company’s capital stock and possess certain rights and are subject to certain obligations pursuant to that certain Fourth Amended and Restated Investors’ Rights Agreement among the Company and such Investors and such Current Holders dated as of August 29, 2013 (the “Prior Rights Agreement”);

 

WHEREAS, certain of the Investors have agreed to purchase shares of the Company’s Series F Preferred Stock pursuant to that certain Securities Purchase Agreement dated as of September 9, 2014 (the “Purchase Agreement”), and it is a condition to the closing of the sale of Series F Preferred Stock pursuant to the Purchase Agreement that the Investors, the Current Holders and the Company enter into this Agreement;

 

WHEREAS, in order to induce the Company to enter into the Purchase Agreement and to induce the Investors that are party thereto to invest funds in the Company pursuant to the Purchase Agreement, the Investors, the Company and the Current Holders desire to amend and restate the Prior Rights Agreement and further desire that this Agreement supersede and replace the Prior Rights Agreement in its entirety; and

 

WHEREAS, Section 13(f) of the Prior Rights Agreement provides that certain amendments to such Prior Rights Agreement (including all of the amendments to be effected by this Agreement) may be effected with the written consent of Holders representing at least a majority of the then-outstanding shares of the Preferred Stock, voting together as a single class (the “Requisite Parties”).

 

NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Requisite Parties hereby agree that the Prior Rights Agreement shall be superseded and replaced in its entirety by this Agreement, and the Company, the Investors and the Current Holders hereby agree as follows:

 

1.             Definitions.

 

“Affiliate” means, (i) for a Holder that is an investment entity and is a partnership, corporation or limited liability company, (A) all Associated Entities of such Holder (as defined below), and (B) all current and former stockholders, constituent limited or general partner, and members of the Holder and any Associated Entities of the Holder; and (ii) for a Holder that is an

 

 

individual, all Immediate Family Members of the Holder as well as any estate-planning related trusts established for the benefit of the Holder and/or any of such Holder’s Immediate Family Members.

 

“Agreement” is defined in the introduction.

 

“Associated Entity” means any entity that is (i) a direct or indirect subsidiary or parent of a Holder or (ii) with respect to a Holder that is a limited liability company or a limited partnership, (A) any manager, managing member, general partner or management company (or, with respect to any Investor, any former manager, managing member or general partner) of such Holder or (B) a fund or entity managed by the same manager, managing member, general partner or management company (or, with respect to any Investor, any former manager, managing member or general partner), or by an entity controlling, controlled by, or under common control with such manager, managing member, general partner or management company (or, with respect to any Investor, any former manager, managing member or general partner).

 

“Awards” is defined in Section 12(e).

 

“Board of Directors” means the Board of Directors of the Company.

 

“Capital Stock” means (i) shares of Common Stock (whether now outstanding or hereafter issued in any context), (ii) shares of Common Stock issued or issuable upon conversion of the Preferred Stock, (iii) shares of Common Stock issued or issuable upon exercise or conversion, as applicable, of stock options, warrants or other convertible securities of the Company, in each case now owned or subsequently acquired by any Current Holder, any Investor, or their respective successors or permitted transferees or assigns, (iv) shares of Series A Preferred Stock (whether now outstanding or hereafter issued in any context), (v) shares of Series A-1 Preferred Stock (whether now outstanding or hereafter issued in any context), (vi) shares of Series B Preferred Stock (whether now outstanding or hereafter issued in any context), (vii) shares of Series C-1 Preferred Stock (whether now outstanding or hereafter issued in any context), (viii) shares of Series D Preferred Stock (whether now outstanding or hereafter issued in any context); (ix) shares of Series E Preferred Stock (whether now outstanding or hereafter issued in any context); and (x) shares of Series F Preferred Stock (whether or not outstanding or hereafter issued in any context).

 

“Cardinal” is defined in Section 7(b)(iii).

 

“Cardinal Director” has the meaning set forth in the Certificate of Incorporation.

 

“CEO Designee” is defined in Section 7(b)(vi).

 

“Certificate of Incorporation” means the Restated Certificate (as defined in the Purchase Agreement), as the same may be amended from time to time.

 

“Change of Control” means the first to occur of any one of any of the following events:  (A) the acquisition of the Company by another Person or Persons by means of any transaction or series of related transactions, including, without limitation, any reorganization, merger, consolidation or similar transaction, whether of the Company with or into any other Person or

 

2

 

Persons or of any other Person or Persons with or into the Company, but excluding, however, any consolidation or merger as a result of which the holders of Capital Stock immediately prior to such merger or consolidation possess more than 50% of the voting power of the corporation surviving such merger, consolidation or similar transaction (or other Person which is the issuer of the capital stock into which the Capital Stock is converted or exchanged in such merger or consolidation); or (B) the sale, lease, transfer or other disposition, in a single transaction or series of related transactions, by the Company or any Subsidiary of the Company of all or substantially all the assets of the Company and its Subsidiaries taken as a whole, except where such sale, lease, transfer or other disposition is to a wholly owned Subsidiary of the Company; (C) a transaction or series of transactions in which a Person or group of Persons (as defined in Rule 13d-5(b)(1) of the Exchange Act) acquires beneficial ownership (as determined in accordance with Rule 13d-3 of the Exchange Act) of 50% or more of the capital stock, on a fully diluted basis, or the voting power of (i) the Company, or (ii) if the surviving or result corporation is a wholly-owned direct or indirect subsidiary of another corporation immediately following such transaction(s), the parent corporation of such surviving or resulting corporation; or (D) any other transaction or series of related transactions which constitutes a “Deemed Liquidation Event” pursuant to the Certificate of Incorporation.

 

“Co-Sale Notice” is defined in Section 3(a).

 

“Co-Sale Shares” is defined in Section 3(b).

 

“Common Stock” means shares of the Company’s Common Stock, par value $0.001 per share.

 

“Commons Capital” means funds associated with Commons Capital, L.P.

 

“Company” is defined in the introduction.

 

“Company Covered Person” is defined in Section 12(k)(i).

 

“Company Notice” means written notice from the Company notifying the Selling Holder that it intends to exercise its Right of First Refusal as to some or all of the Transfer Stock with respect to any Proposed Transfer.

 

“Current Holders” means the Persons listed or deemed (by execution of a joinder agreement or the Prior Rights Agreement (or a predecessor agreement thereto)) to be listed on Exhibit B hereto as Current Holders, and their respective transferees and assigns.

 

“Designating Parties” is defined in Section 7(d).

 

“Designee” means any Series F Designee, Series D Designee, Series C Designee, Series B Designee, First Issued Preferred Designee, CEO Designee or Mutual Designee.

 

“Disqualification Events” is defined in Section 12(k)(i).

 

“Dividend Conversion” has the meaning set forth in the Purchase Agreement.

 

3

 

“Dragging Holders” is defined in Section 10(a).

 

“Eligible Major Investors” is defined in Section 2(c).

 

“Excess Shares” is defined in Section 2(c).

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Fair Market Value” is defined in Section 5(b).

 

“First Issued Preferred Designee” is defined in Section 7(b)(v).

 

“First Issued Preferred Stock” means the Company’s Series A Preferred Stock and Series A-1 Preferred Stock.

 

“Fiscal Year” means the year ending December 31.

 

“Form S-3” means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC.

 

“GAAP” has the meaning set forth in the Purchase Agreement.

 

“Governmental Authority” has the meaning set forth in the Purchase Agreement.

 

“HLM” is defined in Section 7(b)(iii).

 

“HLM Director” has the meaning set forth in the Certificate of Incorporation.

 

“Holder” means each Current Holder and Investor, and its transferees and permitted assigns.

 

“Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, ex-spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a Person referred to herein.

 

“Initiating Investors” means, collectively, any Investors who properly initiate a registration request under this Agreement.

 

“Investors” means KPCB, Trident, HLM, Cardinal, JAFCO and the other Persons listed or deemed (by execution of a joinder agreement) to be listed on the signature pages attached hereto as Investors and their respective transferees and assigns.

 

“IPO” means the Company’s first underwritten Public Offering of its Common Stock under the Securities Act.

 

4

 

“JAFCO” is defined in Section 7(b)(i).

 

“JAFCO Director” has the meaning set forth in the Certificate of Incorporation.

 

“KPCB” is defined in Section 7(b)(ii).

 

“KPCB Director” has the meaning set forth in the Certificate of Incorporation.

 

“Major Investor” means an Investor holding at least 600,000 Shares (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting such Shares).

 

“Material Adverse Effect” has the meaning set forth in the Purchase Agreement.

 

“Mutual Designees” is defined in Section 7(b)(vii).

 

“New Capital” means funds associated with New Capital Partners.

 

“New Capital Director” means James Outland, who shall be designated by New Capital Partners to serve as the First Issued Preferred Designee, subject to Section 7(b)(v).

 

“New Securities” means equity securities of the Company, whether or not authorized as of the date hereof, or rights, options, or warrants to purchase said equity securities, or securities of any type whatsoever that are, or may become, convertible into or exchangeable into or exercisable for said equity securities.

 

“Offer Notice” is defined in Section 9(a)(i).

 

“Offered Price” means the bona fide cash price or other consideration for which a Selling Holder proposes to transfer the Transfer Stock.

 

“Participating Holder” is defined in Section 5(b).

 

“Permitted Transfer” is defined in Section 5(a).

 

“Person” means an individual, corporation, partnership, association, limited liability company, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

“Preferred Directors” is defined in Section 7(b)(v).

 

“Preferred Stock” means the Series A Preferred Stock, Series A-1 Preferred Stock, Series B Preferred Stock, Series C-1 Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, and Series F Preferred Stock.

 

“Prior Rights Agreement” is defined in the recitals.

 

5

 

“Pro Rata Share” means with respect to a particular Major Investor, the quotient obtained by dividing the Shares then owned by such Major Investor by the Shares then owned by all Major Investors.

 

“Prohibited Transfer” is defined in Section 4(c).

 

“Proposed Co-Sale Transfer” is defined in Section 3(a).

 

“Proposed Transfer” means any proposed assignment, sale, offer to sell, disposition or transfer, including without limitation any transfer required pursuant to the terms of a pledge, mortgage, hypothecation, or other encumbrance, or any other like transfer of any Capital Stock (or any interest therein) other than Series D Preferred Stock, proposed by any Current Holder or Investor.

 

“Proposed Transfer Notice” means written notice from a Current Holder or Investor setting forth the terms and conditions of a Proposed Transfer, including, without limitation, the number of Shares proposed to be transferred and the Offered Price for such Transfer Stock.

 

“Prospective Transferee” means any Person to whom a Current Holder or Investor proposes to make a Proposed Transfer.

 

“Public Offering” means the sale of any Capital Stock to the public in an offering pursuant to an effective registration statement under the Securities Act.

 

“Purchase Agreement” is defined in the recitals.

 

“Qualified Public Offering” means the sale of shares of Common Stock to the public in a bona fide firm-commitment underwritten Public Offering pursuant to an effective registration statement under the Securities Act, (i) resulting in at least $40,000,000 of proceeds, net of any underwriting discount and commissions, to the Company, and (ii) involving a per share public offering price (prior to any underwriting discount and commissions) equal to at least $7.2264 (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting such shares).

 

“Refused Securities” is defined in Section 9(a)(iii).

 

“register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document.

 

“Registrable Securities” means all shares of the Investors’ Common Stock and all shares of Common Stock into which the shares of the Investors’ Preferred Stock are then convertible, excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which his rights under Section 8 hereof are assigned or any shares for which registration rights have terminated pursuant to Section 8(o) of this Agreement.

 

“Remaining Co-Sale Shares” is defined in Section 3(b).

 

6

 

“Required Consent” is defined in Section 10(b)(v).

 

“Requisite Approval” is defined in Section 10(a).

 

“Requisite Parties” is defined in the recitals.

 

“Right of Co-Sale” means the right, but not an obligation, of each Major Investor to participate in a Proposed Selling Holder Transfer on the terms and conditions specified in the Proposed Transfer Notice.

 

“Right of First Refusal” means the right, but not an obligation, of the Company, or its permitted transferees or assigns, to purchase some or all of the Transfer Stock with respect to a Proposed Transfer, on the terms and conditions specified in the Proposed Transfer Notice.

 

“ROFR Notice” means written notice from an Eligible Major Investor notifying the Company and the Selling Holder that such Eligible Major Investor intends to exercise the Secondary Refusal Right as to all or a portion of the Transfer Stock with respect to any Proposed Transfer.

 

“SEC” means the United States Securities and Exchange Commission.

 

“SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

 

“SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.

 

“Secondary Notice” means written notice from the Company notifying the Eligible Major Investors that the Company does not intend to exercise its Right of First Refusal as to all shares of Transfer Stock with respect to any Proposed Transfer.

 

“Secondary Refusal Right” means the right, but not an obligation, of each Eligible Major Investor to purchase any Transfer Stock not purchased by the Company pursuant to the Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Selling Holder” is defined in Section 2(b).

 

“Selling Major Investor” is defined in Section 3(b).

 

“Series A Investors’ Common Stock” means the Common Stock purchased by certain of the Investors pursuant to the Securities Purchase Agreement by and among the Company and certain of the Investors dated April 13, 2006.

 

“Series A Investors’ Common Stock Purchase Price” means the Common Stock Purchase Price set forth in the Securities Purchase Agreement by and among the Company and certain of the Investors dated April 13, 2006.

 

7

 

“Series A Preferred Stock” means the shares of the Company’s Series A Preferred Stock, par value $0.001 per share.

 

“Series A-1 Preferred Stock” means the shares of the Company’s Series A-1 Preferred Stock, par value $0.001 per share.

 

“Series B Designee” is defined in Section 7(b)(iv).

 

“Series B Investors’ Common Stock” means the Common Stock purchased by certain of the Investors pursuant to the Series B Purchase Agreement.

 

“Series B Investors’ Common Stock Purchase Price” means the Common Stock Purchase Price set forth in the Series B Purchase Agreement.

 

“Series B Preferred Stock” means the shares of the Company’s Series B Preferred Stock, par value $0.001 per share.

 

“Series B Purchase Agreement” means the Securities Purchase Agreement dated May 16, 2008, entered into by and between the Company and certain Investors described therein.

 

“Series C Designees” is defined in Section 7(b)(iii).

 

“Series C Directors” has the meaning set forth in the Certificate of Incorporation.

 

“Series C Purchase Agreement” means the Securities Purchase Agreement dated November 19, 2009, entered into by and among the Company and certain Investors identified therein, as amended.

 

“Series C-1 Preferred Stock” means the shares of the Company’s Series C-1 Preferred Stock, par value $0.001 per share.

 

“Series D Designee” is defined in Section 7(b)(ii).

 

“Series D Director” is defined in the Certificate of Incorporation.

 

“Series D Preferred Stock” means the shares of the Company’s Series D Preferred Stock, par value $0.001 per share.

 

“Series D Purchase Agreement” means that certain Securities Purchase Agreement dated as of August 25, 2011 by and among the Company and certain Investors identified herein, as amended.

 

“Series E Preferred Stock” means the shares of the Company’s Series E Preferred Stock, par value $0.001 per share.

 

“Series E Purchase Agreement” means that certain Securities Purchase Agreement dated as of August 28, 2013, by and among the Company and certain investors identified therein, as amended.

 

8

 

“Series F Designee” has the meaning set forth in Section 7(b)(i).

 

“Series F Director” has the meaning set forth in the Certificate of Incorporation.

 

“Series F Preferred Stock” means shares of the Company’s Series F Preferred Stock, par value $0.001 per share.

 

“Shares” means shares of Capital Stock outstanding at any time, the holders of which are entitled to vote in the election of directors of the Company.

 

“Stock Incentive Plan” means the Company’s Second Amended and Restated Stock Incentive Plan, as amended from time to time.

 

“Subsidiary” has the meaning set forth in the Purchase Agreement.

 

“Transfer Stock” means shares of Capital Stock (other than Series D Preferred Stock) subject to a Proposed Transfer.

 

“Trident” is defined in Section 7(b)(iv).

 

“Trident Director” has the meaning set forth in the Certificate  of Incorporation.

 

“Violation” means losses, claims, damages, or liabilities (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations: (i) any untrue statement or alleged untrue statement of a material fact contained in a registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by any other party hereto, of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law.

 

“Waveland” means funds associated with Waveland NCP Ventures, Inc.

 

2.                                      Right of First Refusal.

 

(a)                                 Grant.  Each Current Holder and each Investor hereby unconditionally and irrevocably grants to the Company a Right of First Refusal to purchase all or any portion of the Transfer Stock that such Current Holder or Investor may propose to transfer in a Proposed Transfer, at the same price and on the same terms and conditions as those offered to the Prospective Transferee.  All such Proposed Transfers must be pursuant to a bona fide written offer from a Prospective Transferee that sets forth the bona fide Offered Price.

 

(b)                                 Notice.  Each Current Holder and each Investor proposing to make a Proposed Transfer (a “Selling Holder”) must deliver a Proposed Transfer Notice to the Company and to each Major Investor, not later than forty-five (45) days prior to the proposed

 

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consummation of such Proposed Transfer.  Such Proposed Transfer Notice shall contain the material terms and conditions of the Proposed Transfer and the identity of the Prospective Transferee.  To exercise its Right of First Refusal under this Section 2, the Company must give a Company Notice to the Selling Holder within fifteen (15) days after delivery of the Proposed Transfer Notice to the Company, which the Company may deliver only if the Company has the ability to purchase the Transfer Stock in accordance with the restrictions set forth in the Certificate of Incorporation.  In the event of a conflict between this Agreement and any other agreement that may have been entered into by a Selling Holder with the Company or a third party that contains a preexisting right of first refusal, the terms of this Agreement shall control and the preexisting right of first refusal shall be deemed satisfied by compliance with this Section 2.

 

(c)                                  Grant of Secondary Refusal Right.  Each Selling Holder hereby unconditionally and irrevocably grants to the Major Investors (excluding the Selling Holder if the Selling Holder is a Major Investor) (the “Eligible Major Investors”) a Secondary Refusal Right to purchase all or any portion of such Selling Holder’s Transfer Stock not purchased by the Company pursuant to the Right of First Refusal.  If the Company does not intend to exercise its Right of First Refusal with respect to all Transfer Stock subject to a Proposed Transfer (or if the Company is otherwise prohibited from exercising its Right of First Refusal), the Company must deliver a Secondary Notice to the Eligible Major Investors to that effect no later than fifteen (15) days after delivery of the Proposed Transfer Notice to the Company.  Each Eligible Major Investor shall then have the option to purchase any shares of Transfer Stock not elected to be purchased by the Company.  To exercise its Secondary Refusal Right, an Eligible Major Investor must deliver a ROFR Notice to the Selling Holder and the Company setting forth the number of shares of Transfer Stock such Eligible Major Investor desires to purchase within fifteen (15) days after the deadline for delivery of the Secondary Notice, which number of shares may be equal to up to the total number of shares of Transfer Stock available for purchase by the Eligible Major Investors.  If the aggregate number of shares the Eligible Major Investors desire to purchase pursuant to all ROFR Notices exceeds the number of shares of Transfer Stock available for purchase by the Eligible Major Investors, each Eligible Major Investor desiring to purchase Transfer Stock will be allocated a number of shares equal to the lesser of (i) the product of (A) the quotient obtained by dividing the number of Shares then owned by such Eligible Major Investor by the number of Shares then owned by all Eligible Major Investors, multiplied by (B) the number of shares of Transfer Stock available for purchase by the Eligible Major Investors or (ii) the number of shares designated on such Eligible Major Investor’s ROFR Notice.  Following such allocation, each Eligible Major Investor who has not received an allocation of shares equal to that indicated on such Eligible Major Investor’s ROFR Notice will be allocated from the remaining shares of Transfer Stock, if any (the “Excess Shares”), a number of Excess Shares equal to the lesser of (i) the number of shares indicated on such Eligible Major Investor’s ROFR Notice in excess of the number of shares previously allocated to such Eligible Major Investor or (ii) the number of shares obtained by multiplying the number of Excess Shares by a quotient equal to (A) such Eligible Major Investor’s Pro Rata Share divided by (B) the sum of the Pro Rata Shares of each Eligible Major Investor attempting (pursuant to such Eligible Major Investor’s ROFR Notice) to purchase Excess Shares.  If any Excess Shares remain following the allocations described in the immediately preceding sentence, such allocations shall be repeated in like fashion until all of the Excess Shares have been allocated to the Eligible Major Investors. The Secondary Refusal Right set forth in this Section 2(c) may be assigned by a Major Investor

 

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(i) to any Affiliate of such Major Investor or (ii) to any other transferee or assignee of such Major Investor who purchases, in accordance with the terms of this Agreement, at least 600,000 shares (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting such shares) of the Capital Stock owned by such Major Investor.

 

(d)                                 Sale of Transfer Stock.  If the total number of shares of Transfer Stock that the Company and the Major Investors in the aggregate are entitled to purchase pursuant to Sections 2(a) – (c) is less than the total number of shares of Transfer Stock, then the Selling Holder shall, subject to Section 3, be free to sell all, but not less than all, of the Transfer Stock not elected to be purchased by the Company or the Eligible Major Investors to the Prospective Transferee on terms not less favorable to the Selling Holder than such terms set forth in the Proposed Transfer Notice, including, without limitation, at a price not less than the Offered Price (subject to the other terms and restrictions of this Agreement), provided that such sale shall be consummated within sixty (60) days after receipt of the Proposed Transfer Notice by the Company.

 

(e)                                  Consideration; Closing.  If the Offered Price consideration proposed to be paid for the Transfer Stock is in property, services or other non-cash consideration, the fair market value of such consideration shall be determined in good faith by the Board of Directors or, at the election of the purchasing Eligible Major Investors (if any), by a third party appraiser mutually agreed upon by the purchasing Eligible Major Investors and the Company.  If the Company or purchasing Eligible Major Investors cannot for any reason pay for the Transfer Stock in the same form of non-cash consideration, the Company or purchasing Eligible Major Investors may pay the cash value equivalent thereof, as determined by the prior sentence.  In the event the Company and the Eligible Major Investors exercise their Right of First Refusal or Secondary Refusal Right to purchase any shares the Transfer Stock, the closing of such purchase shall take place, and all payments from the Company and the purchasing Eligible Major Investors shall have been delivered to the Selling Holder, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Transfer and (ii) ninety (90) days after delivery of the Proposed Transfer Notice.

 

(f)                                   Termination.  The provisions of this Section 2 shall terminate upon the consummation of a Qualified Public Offering.

 

3.                                      Right of Co-Sale.

 

(a)                                 Grant.  If any Transfer Stock subject to a Proposed Transfer by a Selling Holder is not elected to be purchased by the Company or the Eligible Major Investors pursuant to Section 2 above and thereafter is to be sold to a Prospective Transferee (a “Proposed Co-Sale Transfer”), each Eligible Major Investor may then elect to exercise its Right of Co-Sale and participate in the Proposed Co-Sale Transfer on the same terms and conditions specified in the Proposed Transfer Notice.  To the extent that the Company and the Eligible Major Investors decline or fail to elect to purchase all of the Transfer Stock pursuant to Section 2, then each Eligible Major Investor may give the Selling Holder written notice (a “Co-Sale Notice”) of its exercise of the Right of Co-Sale indicating the number of Shares that such Eligible Major Investor wishes to sell pursuant to its Right of Co-Sale, which Co-Sale Notice must be delivered

 

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within fifteen (15) days after the deadline for delivery of the ROFR Notices described in Section 2(c) above, and upon delivery of such Co-Sale Notice, such Eligible Major Investor shall be deemed to have effectively exercised its Right of Co-Sale.

 

(b)                                 Pro Rata Reduction.  If the aggregate number Shares the Eligible Major Investors desire to sell in a Proposed Co-Sale Transfer (as evidenced by the Co-Sale Notices) exceeds the number of Co-Sale Shares (defined below), each Eligible Major Investor exercising its Right of Co-Sale (a “Selling Major Investor”) will be first allocated (and entitled to sell) a number of Shares of equal to the lesser of (i) the product of (A) the quotient obtained by dividing the number of Shares then owned by such Selling Major Investor by the number of Shares then owned by all Selling Major Investors, multiplied by (B) the number of shares of Co-Sale Shares or (ii) the number of shares designated on such Selling Major Investor’s Co-Sale Notice.  Following such allocation, each Selling Major Investor who has not received an allocation of Co-Sale Shares equal to that indicated on such Selling Major Investor’s Co-Sale Notice will be allocated (and thereby entitled to sell) from the remaining Co-Sale Shares, if any (the “Remaining Co-Sale Shares”), a number of Remaining Co-Sale Shares equal to the lesser of (i) the number of shares indicated on such Selling Major Investor’s Co-Sale Notice in excess of the number of shares previously allocated to such Selling Major Investor or (ii) the number of shares obtained by multiplying the number of Remaining Co-Sale Shares by a quotient equal to (A) such Selling Major Investor’s Pro Rata Share divided by (B) the sum of the Pro Rata Shares of each Selling Major Investor attempting (pursuant to such Selling Major Investor’s Co-Sale Notice) to sell Remaining Co-Sale Shares.  If any Remaining Co-Sale Shares remain following the allocations described in the immediately preceding sentence, such allocations shall be repeated in like fashion until all of the Remaining Co-Sale Shares have been allocated to the Selling Major Investors.  For purposes of this Agreement, the term “Co-Sale Shares” means a number of Shares equal to (i) the number of shares of Transfer Stock not elected to be purchased by the Company or any Eligible Major Investor pursuant to Section 2, multiplied by (ii) a fraction (A) the numerator of which is the number of Shares held on the date of the Secondary Notice by all of the Selling Major Investors, and (B) the denominator of which is the aggregate number of Shares held on the date of the Secondary Notice by all of the Selling Major Investors and the Selling Holder (if, and only if, the Selling Holder is a Major Investor).

 

(c)                                  Deliveries.  Each Selling Major Investor shall effect its participation in the Proposed Co-Sale Transfer by delivering to the Prospective Transferee at the closing of such purchase and sale one or more stock certificates, properly endorsed for transfer to the Prospective Transferee, representing the number of Shares that such Selling Major Investor elects and is entitled to include in the Proposed Co-Sale Transfer.  The Company agrees to make any conversion of Capital Stock concurrent with and contingent upon the actual transfer of such Shares to the Prospective Transferee.

 

(d)                                 Purchase and Sale Agreement.  The terms and conditions of any sale pursuant to this Section 3 will be memorialized in, and governed by, a written purchase and sale agreement with customary terms and provisions for such a transaction entered into by the Selling Major Investors, the Selling Holder and the Prospective Transferee.

 

(e)                                  Consideration.  Each stock certificate a Selling Major Investor delivers to the Prospective Transferee pursuant to subparagraph (c) above will be transferred to the

 

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Prospective Transferee against payment therefor in consummation of the sale of the Transfer Stock pursuant to the terms and conditions specified in the Proposed Transfer Notice and the purchase and sale agreement, and the Prospective Transferee shall concurrently therewith remit to the Selling Major Investors and Selling Holder the portion of the sale proceeds to which each Selling Major Investor and the Selling Holder is entitled by reason of its participation in such sale.  If any Prospective Transferee refuse(s) to purchase securities subject to the Right of Co-Sale from a Selling Major Investor exercising its Right of Co-Sale hereunder, the Selling Holder may not sell any Capital Stock to such Prospective Transferee unless and until, simultaneously with such sale, such Current Holder purchases from such Selling Major Investor all Capital Stock as to which such Selling Major Investor has properly exercised its Right of Co-Sale.

 

(f)                                   Time Period for Closing.  If any Proposed Transfer is not consummated on or before the later of (i) the date specified in the proposed Transfer Notice as the intended date of the Proposed Transfer, or (ii) ninety (90) days after delivery of the Proposed Transfer Notice by the Company, the Selling Holders proposing the Proposed Transfer may not sell any Transfer Stock unless they first comply in full with each provision of Section 2 and this Section 3.  The exercise or election not to exercise any right by any Major Investor hereunder shall not adversely affect its right to participate in any other sales of Transfer Stock subject to this Section 3.

 

(g)                                  Termination.  The provisions of this Section 3 shall terminate upon the consummation of a Qualified Public Offering.

 

4.                                      Effect of Failure to Comply.

 

(a)                                 Transfers Void.  Any Proposed Transfer not made in compliance with the requirements of this Agreement shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall not be recognized by the Company.  Each party hereto acknowledges and agrees that any breach of this Agreement would result in substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate.  Therefore, the parties hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective orders, injunctive relief and other remedies available at law or in equity (including, without limitation, seeking specific performance or the rescission of purchases, sales and other transfers of Capital Stock not made in strict compliance with this Agreement).

 

(b)                                 Cancellation of Stock.  If any Holder becomes obligated to sell any Capital Stock to the Company under this Agreement and fails to deliver such Capital Stock in accordance with the terms of this Agreement, the Company may, at its option, in addition to all other remedies it may have, deliver to such Holder the purchase price for such Capital Stock as is herein specified and cancel on its books the certificate or certificates representing the Capital Stock to be sold.

 

(c)                                  Prohibited Transfers.  If any Current Holder or Investor purports to sell any Transfer Stock in contravention of Right of Co-Sale (a “Prohibited Transfer”), each Major Investor (other than the Investor engaging in the Prohibited Transfer, if such Investor is a Major Investor), in addition to such remedies as may be available by law, in equity or hereunder, shall have the option (which shall be binding on the selling Current Holder or Investor) to require such

 

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Current Holder or Investor to purchase from such Major Investor the type and the maximum number of Shares that such Major Investor would have been entitled to sell to the Prospective Transferee under Section 3 had the Prohibited Transfer been effected pursuant to and in compliance with the terms of Section 3.  The sale will be made on the same terms and subject to the same conditions as would have applied had the Current Holder or Investor not made the Prohibited Transfer, except that the sale (including, without limitation, the delivery of the purchase price) must be made within ninety (90) days after the Major Investors discover the Prohibited Transfer, as opposed to any other period of time prescribed in Section 3.  The Current Holder or Investor purporting to engage in the Prohibited Transfer shall also reimburse each Major Investor for any and all fees and expenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of such Major Investor’s rights under Section 3.

 

5.                                      Exempt Transfers.

 

(a)                                 Permitted Transfers.  Notwithstanding anything to the contrary herein, the provisions of Sections 2 and 3 hereof shall not apply to any of the following transfers (each, a “Permitted Transfer”):  (i) in the case of a Current Holder or Investor that is an entity, to a transfer by such Current Holder or Investor to an Associated Entity of such Current Holder or Investor; (ii) to a repurchase of Capital Stock from a Current Holder or Investor by the Company at a price no greater than that originally paid by such Current Holder or Investor for such Capital Stock and pursuant to an agreement containing vesting and/or repurchase provisions approved by a majority of the members of the Board of Directors, including at least one director designated by an Investor other than the Selling Holder (if the Selling Holder is an Investor); (iii) to a repurchase of Capital Stock from a Holder pursuant to Section 5(b); (iv) in the case of a Current Holder or Investor who is a natural Person, to a transfer of Capital Stock by such Current Holder or Investor, either on death by will or intestacy to his or her Immediate Family Members or during his or her lifetime to any custodian or trustee for the account of a Current Holder (provided that such transferor must provide the Company with advance written notice of such transfer); (v) in the case of a Current Holder or Investor who is a natural Person, to a transfer of Capital Stock by such Current Holder or Investor during his or her lifetime to such Current Holder’s Immediate Family Members (provided that such transferor must provide the Company with advance written notice of such transfer and such transfer must be approved by the Board of Directors); or (vi) any other transfer excluded from Section 2 and/or Section 3 by the approval of Holders constituting a Requisite Approval; provided, however, notwithstanding any such Permitted Transfer pursuant to clauses (i), (iv), (v) or (vi), (A) such transferred Capital Stock shall remain Capital Stock for all purposes hereunder, and such transferee shall be treated as a Current Holder (in the event the transferor was a Current Holder) or Investor (in the event the transferor was an Investor) (but only with respect to the securities so transferred to the transferee) for all purposes of this Agreement (including the obligations with respect to Proposed Transfers of such Capital Stock pursuant to Sections 2 and 3); and (y) the transferee of such Capital Stock must first agree in writing in advance to be bound by and comply with all applicable provisions of this Agreement to the same extent as the transferring Holder.

 

(b)                                 Repurchase by the Company.  Each Current Holder who is a Participant, as defined in the Stock Incentive Plan, or who is an officer, director, employee or consultant of the Company and has otherwise received an award of Capital Stock or Options (as defined in the

 

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Stock Incentive Plan) from the Company (a “Participating Holder”), agrees that, notwithstanding the terms of any stock transfer restriction agreements between the Company and such Participating Holder (and in addition to any repurchase option contained therein), in the event that any such Participating Holder ceases to be employed, engaged or retained by the Company for any reason, then all Shares (including Shares issued upon exercise of Options) and Options granted or awarded to such Participating Holder pursuant to any incentive, award, equity compensation or similar plan (of whatever nature and whether held by such Participating Holder or by one or more of such Participating Holder’s transferees, but not including any Shares purchased pursuant to that certain Option Agreement by and between the Company and Jason Gorevic dated as of November 19, 2009 (the “Gorevic Option”)) which as of the date of termination:  (i) have not vested or have vested but are subject (in accordance with the agreement or plan pursuant to which they were issued) to automatic forfeiture or cancellation upon cessation of the Current Holder’s employment or engagement, will be cancelled (and no consideration will be paid by the Company therefor) and (ii) have vested and are not subject (in accordance with the agreement or plan pursuant to which they were issued) to automatic forfeiture or cancellation upon cessation of the Current Holder’s employment or engagement, will be subject to repurchase by the Company, at the option of the Board of Directors.  The repurchase price for (A) all such vested Shares which are not subject to automatic termination (as described in clause (ii) of the preceding sentence) shall be the “Fair Market Value” thereof, which means the fair market value of a Share as determined in good faith by the Board of Directors using the same method as it uses to determine the exercise price of Options issued pursuant to the Stock Incentive Plan, and (B) all such vested Options which are not subject to automatic termination (as described in clause (ii) of the preceding sentence) shall be the aggregate Fair Market Value of the Shares subject to purchase upon exercise of such vested Option less the aggregate exercise price payable under such Option in respect of such Shares.  Notwithstanding anything contained herein to the contrary, in the event of a Change of Control, all Shares and Options then owned by Participating Holders may, at the discretion of the Board of Directors (including a majority of the Preferred Directors then currently in office), become fully vested; provided, however, that the Board of Directors may require the Participating Holder, as a condition to such vesting, to agree to remain employed or engaged as a director, officer or consultant by the Company or successor to the Company for a period of at least one year following the Change of Control (otherwise the Participating Holder shall forfeit all unvested Shares and all Options as of the date of the Change of Control).  Each Participating Holder agrees to execute and deliver such amendments or restatements of any stock transfer restriction agreements between the Company and the Participating Holder in order to effect the foregoing.

 

6.                                      Legends.

 

(a)                                 Legends.  Each certificate representing Shares held by the Holders or issued to any permitted transferee thereof in connection with a transfer permitted by this Agreement hereof shall be endorsed with the following legends:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN

 

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CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS, CONDITIONS, RESTRICTIONS, RIGHTS, PREFERENCES, PRIVILEGES AND LIMITATIONS SET FORTH IN AN INVESTORS’ RIGHTS AGREEMENT WHICH, AMONG OTHER THINGS, CONTAINS RESTRICTIONS ON THE TRANSFER OF SUCH SHARES AND A VOTING AGREEMENT. A COPY OF THE INVESTORS’ RIGHTS AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF TELADOC, INC.

 

(b)                                 Instructions to Transfer Agent.  Each of the Holders agrees that the Company shall promptly instruct its transfer agent, if any, to (or in the absence of a transfer agent, the Company shall promptly) impose transfer restrictions on the Shares represented by certificates bearing the legend referred to in Section 6(a) above to enforce the provisions of this Agreement.  The legend shall be removed upon termination of this Agreement at the request of the applicable Holder.

 

(c)                                  Company’s Placement of Restrictions.  The Company agrees that it will cause the certificates evidencing the Shares to bear the legends set forth above, and it shall supply, free of charge, a copy of this Agreement to any Holder of a certificate evidencing Shares upon written request from such Holder to the Company at its principal office.  Each Current Holder agrees to surrender all certificates evidencing the Shares owned by such Current Holder which do not bear the legend set forth in Section 6(a) for placement of such legends or the issuance of a replacement certificate bearing the legend set forth above.  The parties to this Agreement agree that the failure to cause the certificates evidencing the Shares to bear the legend required herein and the failure of the Company to supply, free of charge, a copy of this Agreement as provided hereunder shall not affect the validity or enforcement of this Agreement.  In the event of any issuance of Capital Stock by the Company after the date hereof (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like), such Shares shall become subject to this Agreement and shall be endorsed with the legends set forth above.

 

7.                                      Voting Agreement.

 

(a)                                 Voting.  During the term of this Agreement, each of the Holders agrees to vote all Shares owned by such Holder, or over which such Holder has voting control, from time to time and at all times, in whatever manner shall be necessary, to elect (and maintain in office in accordance with the terms hereof) as members of the Board of Directors, the following individuals:

 

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(i)                                     The one (1) Series F Designee (as defined below) as the Series F Director;

 

(ii)                                  The one (1) Series D Designee (as defined below) as the Series D Director;

 

(iii)                               The two (2) Series C Designees (as defined below) as the Series C Directors;

 

(iv)                              The one (1) Series B Designee (as defined below) as the Series B Director;

 

(v)                                 Subject to Section 7(b)(v), the one (1) First Issued Preferred Designee (as defined below) as the New Capital Director (and together with the Series F Director, Series D Director, the Series C Directors and the Series B Director, the “Preferred Directors”);

 

(vi)                              The one (1) CEO Designee (as defined below); and

 

(vii)                           The two (2) Mutual Designees (as defined below).

 

(b)                                 Designation of Directors.  The Designees to the Board of Directors described above shall be chosen as follows:

 

(i)                                     The one (1) “Series F Designee” shall be designated by stockholders comprising funds associated with JAFCO Technology Partners V, L.P., as nominee, its Affiliates, and their successors and assigns (collectively, “JAFCO”), for so long as JAFCO holds a number of shares of Series F Preferred Stock (or Common Stock issued upon the conversion thereof) equal to at least 25% of the number of Shares purchased by JAFCO under the Purchase Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction).

 

(ii)                                  The one (1) “Series D Designee” shall be designated by stockholders comprising funds associated with KPCB HOLDINGS, INC., as nominee, its Affiliates, and their successors and assigns (collectively, “KPCB”), for so long as KPCB holds a number of shares of Series D Preferred Stock (or Common Stock issued on conversion thereof) equal to at least 25% of the number of Shares purchased by KPCB under the Series D Purchase Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction).

 

(iii)                               The two (2) “Series C Designees” shall be designated as follows: the first Series C Designee shall be designated by stockholders comprising funds associated with HLM Venture Partners II, L.P., its Affiliates, and their successors and assigns (collectively, “HLM”) for so long as HLM holds an aggregate number of Shares (determined on an as-converted to Common Stock basis) of Series C-1 Preferred Stock (or Common Stock issued on conversion thereof) and Series E Preferred Stock (or Common Stock issued on conversion thereof) equal to at least 40% multiplied by the sum of (A) the number of Shares originally purchased by HLM under the Series C Purchase Agreement (as adjusted for any stock

 

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combination, stock split, stock dividend, recapitalization or other similar transaction), plus (B) the number of Shares originally purchased by HLM under the Series E Purchase Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction); and the second Series C Designee shall be designated by stockholders comprising funds associated with CHP III, L.P., its Affiliates, and their successors and assigns (collectively, “Cardinal”) for so long as Cardinal holds an aggregate number of Shares (determined on an as-converted to Common Stock basis) of Series C-1 Preferred Stock (or Common Stock issued on conversion thereof) and Series E Preferred Stock (or Common Stock issued on conversion thereof) equal to at least 40% multiplied by the sum of (A) the number of Shares originally purchased by Cardinal under the Series C Purchase Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), plus (B) the number of Shares originally purchased by Cardinal under the Series E Purchase Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction).

 

(iv)                              The one (1) “Series B Designee” shall be designated by stockholders comprising funds associated with Trident Capital, Inc., its Affiliates, and their successors and assigns (collectively, “Trident”) for so long as Trident holds an aggregate number of Shares (determined on an as-converted to Common Stock basis) of Series B Preferred Stock (or Common Stock issued on conversion thereof) and Series E Preferred Stock (or Common Stock issued on conversion thereof) equal to at least 40% multiplied by the sum of (A) the number of shares of Series B Preferred Stock purchased by Trident under the Series B Purchase Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), plus (B) the number of Shares originally purchased by Trident under the Series E Purchase Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction).

 

(v)                                 The one (1) “First Issued Preferred Designee” shall be designated by New Capital for so long as (i) New Capital holds a number of shares of First Issued Preferred Stock (or Common Stock issued on conversion thereof) equal to at least 40% of the number of shares of First Issued Preferred Stock held by New Capital as of the date of the Prior Rights Agreement (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), and (ii) such First Issued Preferred Designee is the New Capital Director.  If, for any reason, New Capital no longer holds such number of shares or the First Issued Preferred Designee is no longer the New Capital Director (i) all remaining holders of First Issued Preferred Stock shall immediately vote to remove the current First Issued Preferred Director pursuant to Section 7(d) below, (ii) the First Issued Preferred Director seat shall remain vacant and be eliminated pursuant to the Company’s Certificate of Incorporation, and (iii) if requested by a majority of the Preferred Directors, all holders of Preferred Stock shall vote all of their shares so as to remove such director, eliminate such seat on the Board of Directors and reduce the number of Board of Directors to eight (8).

 

(vi)                              The one (1) “CEO Designee” shall be the individual serving as the then current Chief Executive Officer of the Company.

 

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(vii)                           The two (2) “Mutual Designees,” both of whom will be industry experts, shall be designated as by a majority in number of the other members of the Board of Directors.

 

(c)                                  Current Designees.  For the purpose of this Agreement, the current directors of the Company shall be deemed to be the following Designees:  (i) Tom Mawhinney shall be deemed to be the Series F Designee; (ii) Dana G. Mead, Jr. shall be deemed to be the Series D Designee; (iii) Marty Felsenthal, and Tom McKinley shall be deemed to be the Series C Designees, (iv) Arneek Multani shall be deemed to be the Series B Designee, (v) James Outland shall be deemed to be the First Issued Preferred Designee, (vi) Jason Gorevic shall be deemed to be the CEO Designee and (vii) Samuel Havens and David B. Snow, Jr. shall be deemed to be the Mutual Designees.

 

(d)                                 Changes in Designees.  From time to time during the term of this Agreement, the parties having the right to select a Designee pursuant to this Agreement (the “Designating Parties”) may, subject to Section 7(b)(v), in their sole discretion:

 

(i)                                     notify the Company in writing of any intention to remove from the Board of Directors any incumbent Designee who occupies a Board of Directors seat for which such Designating Parties are entitled to designate the Designee; or

 

(ii)                                  notify the Company in writing of an intention to select a new Designee for election to the Board of Directors seat for which such Designating Parties are entitled to designate the Designee (whether to replace a prior Designee or to fill a vacancy in such Board of Directors seat).

 

In the event of such initiation of a removal or selection of a Designee under this Section 7(d) or Section 7(b)(v), the Company shall take such reasonable actions as are necessary to facilitate such removals or elections, including, without limitation, soliciting the votes of the appropriate stockholders, and the Holders shall vote their Shares to cause:  (a) the removal from the Board of Directors of the Designee or Designees so designated for removal; and (b) unless such seat is required to remain vacant and be eliminated pursuant to Section 7(b)(v), the election to the Board of Directors of any new Designee or Designees so designated.

 

During the term of this Agreement, each Holder agrees to vote all Shares to maintain the authorized number of members of the Board of Directors at nine (9) directors (or eight (8) if the size of the Board of Directors is reduced pursuant to Section 7(b)(v)), or such other number designated in accordance with the provisions of the Certificate of Incorporation.

 

Each of JAFCO, Trident, HLM, KPCB and Cardinal severally shall each have the right to designate one representative to attend all meetings of the Board of Directors in a non-voting observer capacity (the “Board Observers”); provided, however, that the Company may require, as a condition precedent to the rights provided for under this Section, that the Board Observers and each Person to have access to any of the information provided by the Company to the Board of Directors shall agree to hold in confidence and trust all information so received during such meetings or otherwise; and provided, further, that the Company reserves the right not to provide information and to exclude such Board Observers from any meeting or portion thereof if delivery

 

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of such information or attendance at such meeting by such Board Observers would result in disclosure of trade secrets to the Board Observers or their nominating entities, or would adversely affect the attorney-client privilege between the Company and its counsel.  The Board Observers shall be entitled to the same notice of such meetings and information relating to same as is given to members of the Board of Directors.  The Board Observers shall be entitled to reimbursement for reasonable expenses incurred in the process of attending Board of Director meetings.

 

(e)                                  Increase in Authorized Capital Stock.  Each of the Holders agrees to vote all Shares owned by such Holder, or over which such Holder has voting control, from time to time and at all times, in whatever manner shall be necessary, to authorize an increase in the authorized Capital Stock so that there will be sufficient shares of Common Stock available for conversion of all of the then-outstanding shares of Preferred Stock at any time that an adjustment thereto or to the conversion price thereof may be necessary pursuant to the Certificate of Incorporation of the Company, as amended.

 

(f)                                   Method of Voting.  The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law.  Each Current Holder hereby grants to the Secretary of the Company, in the event that such Current Holder fails to vote Shares as required by this Section 7, a proxy coupled with an interest in all Shares, whether held of record or beneficially owned, which proxy is irrevocable until this Agreement terminates pursuant to its terms or this Section is amended to remove such grant of proxy.  All Holders agree to execute any written consents required to perform the obligations of this Agreement, and the Company agrees at the request of any party entitled to designate directors to call a special meeting of stockholders for the purpose of electing directors.

 

(g)                                  No Liability for Election of Recommended Directors.  No party to this Agreement, nor any Affiliate of any such party, shall have any liability as a result of designating a Designee for election as a director for any act or omission by such Designee in his or her capacity as a director of the Company, nor shall any party have any liability as a result of voting for any such Designee in accordance with the provisions of this Agreement.

 

(h)                                 Specific Enforcement.  Each party hereto acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions of this Section 7 are not performed by the parties in accordance with their specific terms or are otherwise breached.  Accordingly, it is agreed that each of the Company and the Holders shall be entitled to an injunction to prevent breaches of this Section 7 and to specific enforcement of this Section 7 in any action instituted in the United States District Court for the Northern District of Texas or in any court of the State of Texas having subject matter jurisdiction, in addition to any other remedy to which the parties may be entitled at law or in equity.  Each of the parties to this Agreement hereby agrees to appear and to consent to personal jurisdiction in any such action brought in the United States District Court for the Northern District of Texas or in any court of the State of Texas having subject matter jurisdiction.  Each party agrees that service of process in compliance with the notice provisions of this Agreement shall constitute effective service of process on such party.

 

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(i)                                     Termination.  The provisions of this Section 7 shall terminate upon the consummation of a Qualified Public Offering.

 

8.                                      Registration Rights.  The Company hereby covenants and agrees as follows:

 

(a)                                 Request for Registration.

 

(i)                                     If the Company shall receive at any time after the earlier of (x) three (3) years after the date of this Agreement or (y) 180 days after the effective date of the first registration statement for a Public Offering (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or a SEC Rule 145 transaction), a written request from (A) Investors holding at least twenty-five percent (25%) of the Registrable Securities or (B) JAFCO, KPCB, Trident, HLM, Cardinal, New Capital, Waveland, or Commons Capital for so long as such individual entity requesting registration under this Section 8(a)(i) retains at least fifty (50%) percent of the Registrable Securities held thereby as of the date of this Agreement, that the Company file a registration statement under the Securities Act covering the registration of Registrable Securities, then the Company shall:

 

(A)                               within ten (10) days of the receipt thereof, give written notice of such request to all other Investors;

 

(B)                               as soon as practicable, and in any event within 60 days of the receipt of such request, file a registration statement under the Securities Act covering all Registrable Securities which the Investors request, by delivery of written notice to the Company within twenty (20) days of the mailing by the Company of the notice described in Section 8(a)(i)(A), to be registered, subject to the limitations of Section 8(a)(ii); and

 

(C)                               use its reasonable best efforts to cause such registration statement to be declared effective by the SEC as soon as practicable.

 

(ii)                                  If the Initiating Investors intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Section 8(a)(i) and the Company shall include such information in the written notice referred to in Section 8(a)(i)(A).  The underwriter will be selected by a majority in interest of Initiating Investors subject only to the approval of the Company, which approval shall not be unreasonably withheld.  In such event, the right of any Investor to include such Investor’s Registrable Securities in such registration shall be conditioned upon such Investor’s participation in such underwriting and the inclusion of such Investor’s Registrable Securities in the underwriting to the extent provided herein.  All Investors proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 8(c)(v)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting.  Notwithstanding any other provision of this Section 8(a), if the underwriter advises the Initiating Investors in writing that marketing factors require a limitation of the number of Registrable Securities to be underwritten, then the Initiating Investors shall so advise all Investors owning Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of

 

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Registrable Securities that may be included in the underwriting shall be allocated among all Investors, including the Initiating Investors, in proportion (as nearly as practicable) to the number of Registrable Securities of the Company owned by each Investor; provided, however, that the number of shares of Registrable Securities held by the Investors to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting.  If any Investor who has requested inclusion in such registration as provided above disapproves of the terms of the underwriting, such Investor may elect to withdraw therefrom by written notice to the Company, the underwriter and the Initiating Investors.  The securities so withdrawn shall also be withdrawn from registration.  If the underwriter has not limited the number of shares to be underwritten, the Company may include its securities for its own account in such registration if the underwriter so agrees and if the number of Registrable Securities and other securities of the Investors that would otherwise have been included in such registration and underwriting will not be limited thereby.

 

(iii)                               The Company shall not be obligated to effect, or to take any action to effect, any registration:

 

(A)                               pursuant to this Section 8(a):

 

(1)                                 In any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except as may be required under the Securities Act;

 

(2)                                 After the Company has effected three (3) registrations pursuant to this Section 8(a) and such registrations have been declared or ordered effective;

 

(3)                                 If the aggregate number of Shares to be registered pursuant to this Section 8(a) constitute less than 20% of all Registrable Securities then outstanding or would have an aggregate price to the public less than $7,500,000;

 

(4)                                 If the Initiating Investors propose to dispose of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 8(k) below;

 

(5)                                 If the Company has filed a registration statement pursuant to this Section 8(a) which was declared effective within the preceding 180 days; or

 

(B)                               pursuant to any other provision of this Agreement, in any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except as may be required under the Securities Act.

 

(iv)                              Notwithstanding the foregoing, if the Company shall furnish to Investors requesting a registration statement pursuant to this Section 8(a) a certificate signed by the Chief Executive Officer of the Company stating that in the good faith judgment of the Board of Directors, due to business or market conditions or the business or financial condition of the

 

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Company, it would be inappropriate at such time to cause such a registration statement to be filed, the Company shall have the right to defer taking action with respect to such filing for a period of not more than sixty (60) days after receipt of the request of the Initiating Investors; provided, however, that the Company may not utilize this right more than twice in any twelve (12) month period and provided further that the Company shall not register any securities for the account of itself or any other stockholder during such sixty (60) day period other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or an SEC Rule 145 transaction, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only shares being registered are shares of Common Stock issuable upon conversion of debt securities that are also being registered.

 

(v)                                 A registration statement shall not be counted for purposes of Sections 8(a)(iii)(A)(2) or 8(a)(iii)(A)(5) until such time as such registration statement has been declared effective by the SEC (unless the Initiating Investors withdraw their request for such registration (other than as a result of information concerning the business or financial condition of the Company which is made known to the Investors after the date on which such registration was requested, in which case the registration statement shall not be counted) and elect not to pay the registration expenses therefor pursuant to Section 8(e)).  A registration statement shall not be counted for purposes of Sections 8(a)(iii)(A)(2) or 8(a)(iii)(A)(5) if, as a result of an exercise of the underwriter’s cut-back provisions, fewer than the total number of Registrable Securities that Investors have requested to be included in such registration statement are actually included.

 

(b)                                 Company Registration.  If the Company proposes to register any of its stock or other securities under the Securities Act in connection with the Public Offering of such securities solely for cash (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or an SEC Rule 145 transaction, a registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered), the Company shall, at such time, promptly give each Investor written notice of such registration.  Upon the written request of each Investor given within twenty (20) days after mailing of such notice by the Company, the Company shall, subject to the provisions of Sections 8(a)(iii)(B) and 8(g), cause to be registered under the Securities Act all of the Registrable Securities that each such Investor has requested to be registered.  The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 8(b) prior to the effectiveness of such registration whether or not any Investor has elected to include securities in such registration.  The expenses of such withdrawn registration shall be borne by the Company in accordance with Section 8(f) hereof.

 

(c)                                  Obligations of the Company.  Whenever required under this Section 8 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

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(i)                                     prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its reasonable best efforts to cause such registration statement to become effective, and, upon the request of the Investors owning 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, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however, that (i) such 120-day period shall be extended for a period of time equal to the period any Investor refrains from selling any securities included in such registration at the request of an underwriter of Capital Stock; and (ii) in the case of any registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such 120-day period shall be extended for up to 60 additional days, if necessary, to keep the registration statement effective until all such Registrable Securities are sold;

 

(ii)                                  prepare and file with the SEC 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;

 

(iii)                               furnish to the Investors such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them;

 

(iv)                              use its reasonable 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 Investors; 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;

 

(v)                                 in the event of any underwritten Public Offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, and reasonably acceptable to the Company, with the managing underwriter of such offering.  Each Investor participating in such underwriting shall also enter into and perform its obligations under such an agreement;

 

(vi)                              use its reasonable best efforts to cause all such Registrable Securities registered pursuant to this Agreement to be listed on a national securities exchange or trading system or each securities exchange and trading system on which similar securities issued by the Company are then listed;

 

(vii)                           provide a transfer agent and registrar for all Registrable Securities registered pursuant hereto and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

 

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(viii)                        use its reasonable best efforts to furnish, at the request of any Investor requesting registration of Registrable Securities pursuant to this Section 8, on the date on which such Registrable Securities are sold to the underwriter, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and (ii) a “comfort” letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any; and

 

(ix)                              at any time when a prospectus relating thereto is required to be delivered under the Securities Act, notify each Investor when the Company becomes aware 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 in the light of the circumstances then existing, such obligation to continue until the earlier of (A) the sale of all Registrable Securities registered pursuant to the registration statement of which such prospectus forms a part or (B) the withdrawal of such registration statement.

 

(d)                                 Furnish Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 8 with respect to the Registrable Securities of any selling Investor that such Investor shall furnish to the Company such information regarding the Investor, the Registrable Securities held by such Investor, and the intended method of disposition of such securities as shall be reasonably required to effect the registration of such Investor’s Registrable Securities.

 

(e)                                  Expenses of Demand Registration.  All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to Section 8(a), including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements of one counsel for the selling Investors shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration begun pursuant to Section 8(a) if the registration request is subsequently withdrawn at the request of the Investors owning a majority of the Registrable Securities to be registered (in which case all participating Investors shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Investors owning a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 8(a); provided further, however, that if at the time of such withdrawal, the Investors have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Investors at the time of their request and have withdrawn the request with reasonable promptness after learning of such information, then the Investors shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 8(a).

 

(f)                                   Expenses of Company Registration.  The Company shall bear and pay all expenses incurred in connection with any registration, filing or qualification of Registrable

 

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Securities with respect to the registrations pursuant to Section 8(b) hereof for each Investor (which right may be assigned as provided in Section 8(l) hereof), including (without limitation) all registration, filing, and qualification fees, printers and accounting fees relating or apportionable thereto and the fees and disbursements of one counsel for the selling Investors selected by them, but excluding underwriting discounts and commissions relating to Registrable Securities.

 

(g)                                  Underwriting Requirements.  In connection with any offering involving an underwriting of shares of the Company’s Capital Stock pursuant to Section 8(b), the Company shall not be required to include any of an Investor’s securities in such underwriting unless such Investor accepts the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company.  If the total number of securities, including Registrable Securities, requested by Investors to be included in such offering exceeds the amount of securities to be sold by Persons other than the Company that the underwriters determine in their reasonable discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company determine in their sole discretion will not jeopardize the success of the offering.  In no event shall any Registrable Securities be excluded from such offering unless all other securities have been first excluded (other than securities being sold by the Company).  In the event that the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be apportioned pro rata among the selling Investors based on the number of Registrable Securities held by all selling Investors or in such other proportions as shall mutually be agreed to by all such selling Investors.  Notwithstanding the foregoing, in no event shall (i) the aggregate amount of securities of all selling Investors included in the offering be reduced below twenty percent (20%) of the total amount of securities included in such offering, unless such offering is the Qualified Public Offering, in which case the selling Investors may be excluded beyond this amount if the underwriters make the determination described above and no other stockholder’s securities are included in such offering.  For purposes of the preceding sentence concerning apportionment, for any Investor which is an investment fund, partnership, limited liability company or corporation, the partners, members, retired partners, retired members, stockholders and Affiliates of such Investor, or the estates and family members of any such partners, retired partners, members and retired members and any trusts for the benefit of any of the foregoing Persons shall be deemed to be a single “selling Investor,” and any pro-rata reduction with respect to such “selling Investor” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling Investor,” as defined in this sentence.  The Company shall advise all Investors requesting registration as to the number of shares or securities that may be included in the registration and underwriting as allocated in the foregoing manner.  If any selling Investor disapproves of the terms of any such underwriting, such selling Investor may elect to withdraw therefrom by written notice to the Company and the underwriter.  Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall also be withdrawn from such registration.

 

(h)                                 Delay of Registration.  No Investor shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the

 

26

 

result of any controversy that might arise with respect to the interpretation or implementation of this Section 8.

 

(i)                                     Indemnification.  In the event any Registrable Securities are included in a registration statement under this Section 8:

 

(i)                                     To the extent permitted by law, the Company will indemnify and hold harmless each Investor, the partners, members, officers, directors, stockholders and Affiliates of each Investor, legal counsel and accountants for each Investor, any underwriter (as defined in the Securities Act) for such Investor and each Person, if any, who controls such Investor or underwriter within the meaning of the Securities Act or the Exchange Act, against any Violation, and the Company will pay to each such Investor, underwriter, controlling Person or other aforementioned Person, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action as a result of a Violation as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 8(i)(i) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action to the extent (and only to the extent) that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Investor, underwriter, controlling Person or other aforementioned Person.

 

(ii)                                  To the extent permitted by law, each selling Investor will severally and not jointly indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, legal counsel and accountants for the Company, any underwriter, any other Holder selling securities in such registration statement and any controlling Person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing Persons may become subject, under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Investor expressly for use in connection with such registration; and each such Investor will pay any legal or other expenses reasonably incurred by any Person intended to be indemnified pursuant to this Section 8(i)(ii) in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 8(i)(ii) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Investor, which consent shall not be unreasonably withheld; provided, further, that, in no event shall the amount paid by any Investor pursuant to the indemnity set forth in this Section 8(i)(ii) together with any amounts contributed by such Investor under Section 8(i)(iv) exceed the net proceeds from the offering received by such Investor.

 

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(iii)                               Promptly after receipt by an indemnified party under this Section 8(i) of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 8(i), deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; 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 to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 8(i) only to the extent that such failure to deliver was prejudicial to its ability to defend such action, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 8(i).

 

(iv)                              In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any Investor exercising rights under this Agreement, or any controlling Person of any such Investor, makes a claim for indemnification pursuant to this Section 8(i) but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 8(i) provides for indemnification for the benefit of such Investor in such case, or (ii) contribution under the Securities Act may be required on the part of any such Investor or any such controlling Person in circumstances for which indemnification for the benefit of such Investor is provided under this Section 8(i), then, and in each such case, the Company and such Investor will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) 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.  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 or alleged 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; provided, however, that, in any such case, (I) no such Investor will be required to contribute any amount in excess of the proceeds received by such Investor from all such Registrable Securities offered and sold by such Investor pursuant to such registration statement, and (II) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; provided further, that in no event shall an Investor’s liability pursuant to this Section 8(i)(iv), when combined with the amounts paid or payable by such holder pursuant to

 

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Section 8(i)(ii), exceed the proceeds from the offering (net of any underwriting discounts or commissions) received by such Investor.

 

(v)                                 Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten Public Offering, the obligations of the Company and each Investor under this Section 8(i) shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 8, and otherwise and shall survive the termination of this Agreement.

 

(j)                                    Reports Under Exchange Act.  With a view to making available to the Investors the benefits of SEC Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit an Investor to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:

 

(i)                                     make and keep public information available, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public so long as the Company is subject to the periodic reporting requirements under Sections 13 or 15(d) of the Exchange Act;

 

(ii)                                  file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act;

 

(iii)                               furnish to any Investor, so long as the Investor owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144, 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 as may be reasonably requested in availing any Investor of any rule or regulation of the SEC which permits the selling of any such Registrable Securities without registration or pursuant to such form; and

 

(iv)                              take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the Investors to utilize Form S-3 (or any successor form that provides for short-form registration) for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the Fiscal Year in which the first registration statement filed by the Company for the offering of its securities to the general public is declared effective.

 

(k)                                 Form S-3 Registration.  In case the Company shall receive a written request or requests from (A) Investors holding at least twenty-five percent (25%) of the Registrable Securities, or (B) JAFCO, KPCB, Trident, HLM, Cardinal, Waveland, New Capital or Commons Capital for so long as such individual entity retains at least fifty percent (50%) of the Registrable Securities held thereby as of the date of this Agreement, that the Company effect

 

29

 

a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Investors, the Company will:

 

(i)                                     promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Investors; and

 

(ii)                                  as soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Investors’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Investors joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company described in Section 8(k)(i); provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 8(k):  (1) if Form S-3 is not then available for such offering by the Investors; (2) if the Investors, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $1,000,000; (3) if the Company shall furnish to the Investors a certificate signed by the Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of Directors, due to business or market conditions or the business or financial condition of the Company it would be inappropriate for such Form S-3 registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than sixty (60) days after receipt of the request of the Investors under this Section 8(k); provided, however, that the Company shall not utilize this right more than twice in any twelve (12)-month period and provided further, that the Company shall not register any securities for the account of itself or any other stockholder during such 60-day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under SEC Rule 145, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered); (4) if the Company has, within the twelve (12)-month period preceding the date of such request, already effected two (2) registrations on Form S-3 for the Investors pursuant to this Section 8(k); (5) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company is already subject to service in such jurisdiction and except as may be required under the Securities Act; or (6) during the period ending one hundred eighty (180) days after the effective date of a registration statement subject to Section 8(a) or Section 8(b) hereof.

 

(iii)                               Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Investors.  All expenses incurred in connection with a registration requested pursuant to this Section 8(k), including (without limitation) all registration, filing, qualification, printer’s and accounting fees and the reasonable fees and disbursements of counsel for the selling Investors and counsel for the Company, but

 

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excluding any underwriters’ discounts or commissions associated with the Registrable Securities, shall be borne by the Company.  Registrations effected pursuant to this Section 8(k) shall not be counted as demands for registration or registrations effected pursuant to Section 8(a).

 

(iv)                              If the Initiating Investors 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 pursuant to this Section 8(k) and the Company shall include such information in the written notice referred to in Section 8(k)(i).  The provisions of Section 8(a)(ii) shall be applicable to such request (with the substitution of Section 8(k) for references to Section 8(a)).

 

(l)                                     Assignment of Registration Rights.  The rights to cause the Company to register Registrable Securities pursuant to this Section 8 may be assigned (but only with all related obligations) by an Investor to a transferee or assignee of such Registrable Securities that (i) acquires such Investor’s Registrable Shares pursuant to a Permitted Transfer, or (ii) otherwise purchases, in accordance with the terms of this Agreement, at least 76,000 shares (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting such shares) of Registrable Securities from the transferring Investor, provided:  (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement; and (c) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Securities Act.  For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee (other than for purposes of Section 8(l)(ii)), the holdings of a transferee or assignee (A) that is a Subsidiary, parent, partner, limited partner, retired partner, member, retired member or stockholder of an Investor, (B) that is an Affiliate of the Investor, (C) who is an Investor’s Immediate Family Member, or (D) that is a trust, custodian, fiduciary or trustee for the benefit of an individual Investor or such Investor’s Immediate Family Member, shall be aggregated together and with those of the assigning Investor.

 

(m)                             Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior written consent of the Investors owning at least a majority of the Registrable Securities then outstanding, enter into any agreement with any Holder or prospective Holder of any securities of the Company which would grant to such Holder or prospective Holder (i) any right to include such securities in any registration by the Company of its stock or other securities that is pari passu or superior to the rights granted to the Investors under this Section 8 or (ii) any right to demand registration of any securities held by such Holder or prospective Holder.

 

(n)                                 “Market Stand-Off” Agreement.  Each Holder hereby agrees that such Holder shall not sell, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale of, any Common Stock (or other Capital Stock or securities) of the Company held by such Holder (other than those included in the registration) during (i) the 180-day period following the effective date of the IPO (or such longer period, not to exceed 18 days after the expiration of the 180-day

 

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period described above, as the underwriters or the Company shall request in order to facilitate compliance with NASD Rule 2711 or NYSE Rule 472, or similar rules promulgated by any successor entities), and (ii) the 90-day period following the effective date of a registration statement of the Company (other than with respect to the IPO) filed under the Securities Act (or such longer period, not to exceed 18 days after the expiration of the 90 day period, as the underwriters or the Company shall request in order to facilitate compliance with NASD Rule 2711, NYSE Rule 472, or similar rules promulgated by any successor entities).  The obligations described in this Section 8(n) (a) shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, (b) shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future and (c) shall only be applicable to the Holders if all officers, directors of the Company and Affiliates of officers or directors enter into similar agreements and the Company uses all reasonable efforts to obtain similar agreements from all greater than one percent (1%) stockholders of the Company.  The underwriters in connection with the Company’s IPO or other underwritten Public Offering are intended third-party beneficiaries of this Section 8(n) and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto.  Any discretionary waiver or termination of the restrictions or agreements described in this Section 8(n) by the Company or the underwriters shall apply to the Holders subject to such agreements pro rata based on the number of shares subject to such agreements.  The Company shall cause all future purchasers of Capital Stock to execute and deliver this Agreement or a Market Stand-off Agreement substantially in the form of this Section 8(n).

 

(o)                                 Termination of Registration Rights.  The rights of any Investor to request registration of Registrable Securities under Sections 8(a), 8(b) or 8(k) shall terminate upon the earlier of (i) the fifth (5th) anniversary of the IPO, (ii) such date, on or after the closing of the IPO, on which such Investor could sell all Registrable Securities held by such Investor within a ninety (90) day period under SEC Rule 144, free of any current public information requirements, volume limitations, manner of sale restrictions and Form 144 filing requirements under such rule or (iii) such date that an Investor shall hold less than one percent (1%) of the Company’s issued and outstanding Capital Stock; provided, however, that an Investor’s registration rights shall not be deemed to have terminated pursuant to this Section 8(o) with respect to any registration (whether undertaken by the Company on its own behalf or on the behalf of Initiating Investors) if in connection with such registration, such Investor is subject to the market standoff agreement set forth in Section 8(n).

 

9.                                      Right of First Offer.

 

(a)                                 Right of First Offer.  Subject to the terms and conditions specified in this Section 9, and applicable securities laws, in the event the Company proposes to offer or sell any New Securities (other than securities described in Section 9(a)(iv)) the Company shall first make an offering of such New Securities to the Major Investors in accordance with the following provisions.  Each Major Investor may, in its discretion, assign to its Affiliates, any other Major Investor(s) or their respective Affiliates, all or a portion of the right of first offer hereby granted to such Major Investor.

 

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(i)                                     The Company shall deliver a notice, in accordance with the provisions hereof (the “Offer Notice”), to the Major Investors stating (A) its bona fide intention to offer such New Securities, (B) the number of such New Securities to be offered, and (C) the price and terms, if any, upon which it proposes to offer such New Securities.

 

(ii)                                  By written notification received by the Company, within twenty (20) calendar days after mailing of the Offer Notice, each Major Investor may elect to purchase or obtain, at the price and on the terms specified in the Offer Notice, any or all of that portion of such New Securities which equals the proportion that the number of Shares then held by such Major Investor (including all securities held by such Investor that are convertible into or exchangeable for Shares on an as-converted basis) bears to the total number of Shares then outstanding (assuming full conversion and exercise of all convertible and exercisable securities).

 

(iii)                               If all New Securities referred to in the Offer Notice are not elected to be purchased or obtained as provided above, the Company may, during the ninety (90) day period following the expiration of the period provided in Section 9(a)(ii), offer the remaining unsubscribed portion of such New Securities (collectively, the “Refused Securities”) 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 Offer Notice.  If the Company does not enter into an agreement for the sale of any of the Refused Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such remaining Refused Securities shall not be offered unless first reoffered to the Major Investors in accordance with this Section 9(a).

 

(iv)                              The right of first offer in this Section 9(a) shall not be applicable to (i) Exempted Securities (as defined in the Certificate of Incorporation), (ii) the issuance of Series F Preferred Stock in connection with the Dividend Conversion, or (iii) any other issuance of New Securities excluded from this Section 9(a) by the approval of a (A) Requisite Approval and, to (B) the extent the any of the Persons to whom the New Securities are being offered constitute Major Investors, one of JAFCO or Greenspring Global Partners VI-A, L.P. and Greenspring Global Partners VI-C, L.P.

 

(v)                                 Subject to the right of the Major Investors to apportion such right of first offer among themselves pursuant to this Section 9(a), the right of first offer set forth in this Section 9(a) may not be assigned or transferred except that such right is assignable by any Major Investors (i) to any Affiliate of the Major Investors, or (ii) to any other transferee or assignee of such Major Investor who purchases, in accordance with the terms of this Agreement, at least 600,000 shares (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting such shares) of the Capital Stock owned by such Major Investor.

 

(b)                                 Directed IPO Shares.  In the event of an IPO, the Company will use its reasonable best efforts to cause the managing underwriter(s) of such IPO to designate a number of shares equal to ten percent (10%) of the Company’s shares of Common Stock to be offered in such IPO for sale under a “directed shares program” and shall instruct such underwriter(s) to allocate no less than fifty percent (50%) of such directed shares program to be sold to Persons designated by Investors holding a majority of the Shares held by all of the Investors.  The shares

 

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designated by the underwriter(s) for sale under a directed shares program are referred to herein as “directed shares.”  The Investors acknowledge that, despite the Company’s use of its reasonable best efforts, the underwriter(s) may determine in their sole discretion that it is not advisable to designate all such shares as directed shares in the IPO, in which case the number of designated shares may be reduced or no directed shares may be designated, as applicable.  The Investors also acknowledge that notwithstanding the terms of this Agreement, the sale of any directed shares to any Person pursuant to this Agreement will only be made in compliance with Rules 2110 and 2790 of the National Association of Securities Dealers, Inc. Conduct Rules, IM-2110-1 and federal, state and local laws, rules and regulations and only if the IPO is consummated after one year from the date hereof.

 

(c)                                  Termination.  The provisions of this Section 9 shall terminate immediately following the consummation of a Qualified Public Offering.

 

10.                               Drag-Along Rights.

 

(a)                                 Actions to be Taken.  In the event that the Holders (the “Dragging Holders”) representing a majority of the then-outstanding shares of Preferred Stock, voting together as a single class (a “Requisite Approval”) and the Board of Directors approve a Change of Control in writing, specifying that this Section 10(a) shall apply to such transaction, then each Holder hereby agrees:

 

(i)                                     if such transaction requires stockholder approval, with respect to all Shares that such Holder owns or over which such Holder otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Shares in favor of, and adopt, such Change of Control and to vote in opposition to any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Change of Control;

 

(ii)                                  if such transaction is a sale of Capital Stock, to sell the same proportion of Shares beneficially held by such Holder as is being sold by the Dragging Holders to the Person to whom the Dragging Holders propose to sell their Shares (determined on an as-converted to Common Stock basis), and, except as permitted below, on the same terms and conditions as the Dragging Holders;

 

(iii)                               to execute and deliver all related documentation and take such other action in support of the Change of Control as shall reasonably be requested by the Company or the Dragging Holders in order to carry out the terms and provisions of this Section 10(a), including without limitation executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances) and any similar or related documents;

 

(iv)                              not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Capital Stock owned by such Holder or Affiliate in a voting trust or subject any Capital Stock to any arrangement or agreement with respect to the voting of

 

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such Capital Stock, unless specifically requested to do so by the acquiror in connection with the Change of Control; and

 

(v)                                 to refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at any time with respect to such Change of Control.

 

(b)                                 Exceptions.  Notwithstanding the foregoing, a Holder will not be required to comply with Section 10(a) above in connection with any proposed Change of Control unless:

 

(i)                                     any representations and warranties to be made by such Holder in connection with the Change of Control are limited to representations and warranties related to authority, ownership and the ability to convey title to Shares, including but not limited to representations and warranties that (i) the Holder holds all right, title and interest in and to the Shares such Holder purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of the Holder in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by the Holder have been duly executed by the Holder and delivered to the acquirer and are enforceable against the Holder in accordance with their respective terms and (iv) neither the execution and delivery of documents to be entered into in connection with the transaction, nor the performance of the Holder’s obligations thereunder, will cause a breach or violation of the terms of any agreement, law or judgment, order or decree of any court or governmental agency;

 

(ii)                                  the Holder shall not be liable for the inaccuracy of any representation or warranty made by any Person in connection with the Change of Control, other than such Holder and the Company;

 

(iii)                               the liability for indemnification, if any, of such Holder in connection with the Change of Control and for the inaccuracy of any representations and warranties made by the Company in connection with such Change of Control, is several and not joint with any other Person (other than the Company), and is pro rata with the other holders of the same class or series of Capital Stock of the Company in accordance with such Holder’s relative stock ownership of such class or series;

 

(iv)                              the liability of such Holder shall be limited to the amount of consideration actually paid to such Holder in connection with such Change of Control, except with respect to (A) representations and warranties of such Holder related to authority, ownership and the ability to convey title to Shares, (B) any covenants made by such Holder with respect to confidentiality or voting related to the Change of Control or (C) claims related to fraud or willful breach by such Holder, the liability for which need not be limited; and

 

(v)                                 upon the consummation of the Change of Control, (i) each Holder of the Preferred Stock and each Holder of Common Stock will receive the same form of consideration for their shares of Common Stock and Preferred Stock, (ii) each Holder of a series of Preferred Stock will receive the same amount of consideration per share of such series of Preferred Stock, (iii) each Holder of Common Stock will receive the same amount of consideration per share of Common Stock, and (iv) unless the Holders of (A) at least a majority of the then outstanding shares of First Issued Preferred Stock, voting as a single class, (B) at least

 

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a majority of the then outstanding shares of Series B Preferred Stock, (C) at least a majority of the shares of Series C-1 Preferred Stock, with such majority including at a minimum all of the shares of Series C-1 Preferred Stock held by either HLM or Cardinal, (D) at least a majority of the shares of Series D Preferred Stock, with such majority including at a minimum all of the shares of Series D Preferred Stock held by KPCB, (E) at least a majority of the shares of Series E Preferred Stock, with such majority including at a minimum all of the shares of Series E Preferred Stock held by either Cardinal or HLM, and (F) at least a majority of the outstanding shares of Series F Preferred Stock, with such majority including at a minimum all of the shares of Series F Preferred Stock owned by JAFCO (such consent, a “Required Consent”) elect otherwise by written notice given to the Company at least ten (10) days prior to the effective date of any such Change of Control, the aggregate consideration receivable by all Holders of Preferred Stock and Common Stock shall be allocated among the Holders of Preferred Stock and Common Stock on the basis of the relative liquidation preferences to which the Holders of each series of Preferred Stock and the Holders of Common Stock are entitled in a Deemed Liquidation Event (assuming for this purpose that the Change of Control is a Deemed Liquidation Event) in accordance with the Certificate of Incorporation.

 

(c)                                  Restrictions on Sales of Control of the Company.  No Holder shall be a party to any Change of Control transaction unless all Holders of Preferred Stock are allowed to participate in such transaction and the consideration received pursuant to such transaction is allocated among the parties thereto in the manner specified in the Certificate of Incorporation in effect immediately prior to the Change of Control (as if such transaction were a Deemed Liquidation Event), unless Holders representing a Required Consent elect otherwise by written notice given to the Company at least ten (10) days prior to the effective date of any such transaction or series of transactions.

 

(d)                                 Termination.  The provisions of this Section 10 shall terminate upon the earliest of:  (i) the consummation of a Qualified Public Offering; (ii) immediately following a Change of Control, but only to the extent such termination is approved by Holders representing a Required Consent; and (iii) such time as the Investors no longer own at least five percent (5%) of the Capital Stock.

 

11.                               Redemption of Investors’ Common Stock.

 

(a)                                 Series B Investors’ Common Stock.  The Company and the Holders agree that they will take all action to cause the shares of the Series B Investors’ Common Stock held by Holders of Series B Preferred Stock to be redeemed by the Company, out of funds lawfully available therefor, simultaneously with the redemption of the Series B Preferred Stock in accordance with the provisions of Section 7 of Article V of the Certificate of Incorporation, at a price equal to the greater of (i) the sum of (A) 2.25 times the Series B Investors’ Common Stock Purchase Price (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), plus (B) any dividends declared but unpaid thereon and (ii) the Series B Investors’ Common Stock Appraised Value, as defined below.  If, after the redemption of the Series F Preferred Stock, Series E Preferred Stock, Series D Preferred Stock, Series C-1 Preferred Stock and Series B Preferred Stock, the Company does not have sufficient funds legally available to redeem all shares of the Series B Investors’ Common Stock, the Company shall redeem a pro rata portion of the Series B Investors’ Common Stock held by each

 

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Holder of Series B Preferred Stock out of funds legally available therefor, based on the respective amounts which would otherwise be payable in respect of the shares to be redeemed if the legally available funds were sufficient to redeem all such shares, and shall redeem the remaining shares as soon as practicable after the Company has funds legally available therefor.  In connection with such redemption, the provisions of Section 7 of Article V of the Certificate of Incorporation, regarding notice of redemption, surrender of certificates and rights subsequent to redemption, shall apply to the Series B Investors’ Common Stock in the same manner that such provisions apply to the Series B Preferred Stock.  “Series B Investors’ Common Stock Appraised Value” shall be the fair market value of the Series B Investors’ Common Stock, as established by the Board of Directors in good faith following such request for redemption (which shall not include a discount for minority ownership interest or illiquidity).

 

(b)                                 Series A Investors’ Common Stock.  The Company and the Holders agree that they will take all action to cause the shares of the Series A Investors’ Common Stock held by Holders of Series A Preferred Stock to be redeemed by the Company, out of funds lawfully available therefor, simultaneously with the redemption of the First Issued Preferred Stock in accordance with the provisions of Section 7 of Article V of the Certificate of Incorporation and only after the full redemption of the Series F Preferred Stock, Series E Preferred Stock, Series D Preferred Stock, Series C-1 Preferred Stock, Series B Preferred Stock and the Series B Investors’ Common Stock, at a price equal to the greater of (i) the sum of (A) 2.25 times the Series A Investors’ Common Stock Purchase Price (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), plus (B) any dividends declared but unpaid thereon and (ii) the Series A Investors’ Common Stock Appraised Value, as defined below.  If, after the redemption of the First Issued Preferred Stock, the Company does not have sufficient funds legally available to redeem all shares of the Series A Investors’ Common Stock, the Company shall redeem a pro rata portion of the Series A Investors’ Common Stock held by each Holder of Series A Preferred Stock out of funds legally available therefor, based on the respective amounts which would otherwise be payable in respect of the shares to be redeemed if the legally available funds were sufficient to redeem all such shares, and shall redeem the remaining shares as soon as practicable after the Company has funds legally available therefor.  In connection with such redemption, the provisions of Section 7 of Article V of the Certificate of Incorporation, regarding notice of redemption, surrender of certificates and rights subsequent to redemption, shall apply to the Series A Investors’ Common Stock in the same manner that such provisions apply to the First Issued Preferred Stock.  “Series A Investors’ Common Stock Appraised Value” shall be the fair market value of the Series A Investors’ Common Stock, as established by the Board of Directors in good faith following such request for redemption (which shall not include a discount for minority ownership interest or illiquidity).

 

12.                               Additional Covenants.

 

(a)                                 D & O Insurance.  The Company shall maintain an insurance policy or policies with a minimum of coverage and on terms and conditions reasonably acceptable to the Board of Directors, JAFCO, KPCB, Trident, HLM, and Cardinal, including without limitation that such policy shall not be cancelable by the Company without prior approval of the Board of Directors, JAFCO, KPCB, Trident, HLM, and Cardinal.  Such policy or policies shall provide liability insurance for directors, officers, employees, or agents or fiduciaries of the Company, its Subsidiaries or of any other corporation, limited liability company, partnership, joint venture,

 

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trust, employee benefit plan or other enterprise that such Person serves at the request of the Company.  Such indemnitees shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies.  The Company shall maintain such insurance coverage during the period each such indemnitee is a director, officer, employee, or agent or fiduciary of the Company, its Subsidiaries or of any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise that such indemnitee serves at the request of the Company and for at least five (5) years thereafter.  The Company shall give prompt notice of the commencement of any claim or proceeding hereunder to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of each such indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

(b)                                 Financial and Business Information.  The Company shall deliver to each Major Investor:

 

(i)                                     As soon as available, and in any event within one hundred twenty (120) days after the end of each Fiscal Year of the Company:  (A) a copy of the audited consolidated financial statements of the Company and its Subsidiaries for such Fiscal Year containing a consolidated and consolidating balance sheet, statement of income, statement of stockholders’ equity, and statement of cash flows, each as at the end of such Fiscal Year and for the Fiscal Year then ended and in each case setting forth in comparative form the figures for the preceding Fiscal Year, all in reasonable detail and prepared in accordance with GAAP, and accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances; (B) a comparison of the actual results during such Fiscal Year to those originally budgeted by the Company prior to the beginning of such Fiscal Year and a narrative description and explanation of any budget variances; and (C) a copy of the Company’s federal and state income tax returns.

 

(ii)                                  As soon as available, and in any event within forty-five (45) days after the end of each of the first three fiscal quarters of each Fiscal Year, a copy of unaudited consolidated financial statements of the Company and its Subsidiaries as of the end of such fiscal quarter and for the portion of the Fiscal Year then ended, subject to year-end audit adjustments, containing a balance sheet, statement of income, statement of retained earnings and statement of cash flows, in each case setting forth in comparative form the figures for the corresponding period of the preceding Fiscal Year and all in reasonable detail, including, without limitation, a comparison of the actual results during such period to those originally budgeted by the Company prior to the beginning of such fiscal period and for the Fiscal Year to date.

 

(iii)                               As soon as available, and in any event within twenty (20) days after the end of each fiscal month, a copy of unaudited consolidated financial statements of the

 

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Company and its Subsidiaries as of the end of such fiscal month and for the portion of the Fiscal Year then ended, subject to year-end audit adjustments, containing a balance sheet, statement of income, statement of retained earnings and statement of cash flows, in each case setting forth in comparative form the figures for the corresponding period of the preceding Fiscal Year and all in reasonable detail, including, without limitation, a comparison of the actual results during such period to those originally budgeted by the Company prior to the beginning of such fiscal period and for the Fiscal Year to date.

 

(iv)                              On or before December 1 of each Fiscal Year, an annual budget or business plan for the next succeeding Fiscal Year including month-to-month detail, including a projected consolidated and consolidating balance sheet, income statement, and cash flow statement for such next succeeding Fiscal Year and any underlying assumptions, and, promptly during each Fiscal Year, all revisions thereto approved by the Board of Directors.

 

(v)                                 As soon as available, copies of all final reports or letters submitted to the Company by its independent certified public accountants in connection with each annual, interim or special audit of the financial statements of the Company made by such accountants, including, without limitation, any management report, and the Company agrees to obtain such a report in connection with each of the annual audits.

 

(vi)                              Promptly, and in any event within ten (10) days of receipt thereof, copies of any notice to the Company or any Subsidiary from any Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect.

 

(vii)                           With reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries as from time to time may be reasonably requested by the Major Investors.

 

(c)                                  Books and Records; Inspection.

 

(i)                                     The Company shall, and shall cause each of its Subsidiaries to, keep (i) proper books of record and account in which full, true and correct entries will be made of all dealings or transactions of or in relation to its business and affairs; (ii) set upon its books accruals with respect to all taxes, assessments, charges, levies and claims; and (iii) on a reasonably current basis set upon its books its earnings allowances against doubtful receivables, advances and investments and all other proper accruals (including, without limitation, by reason of enumeration, accruals for premiums, if any, due on required payments and accruals for depreciation, obsolescence, or amortization of properties), which should be set aside from such earnings in connection with its business.  All determinations pursuant to this subsection shall be made in accordance with, or as required by, GAAP consistently applied.  The Company and its Subsidiaries will maintain a modern system of accounting established and administered in accordance with sound business practices to permit preparation of consolidated financial statements in conformity with GAAP.

 

39

 

(ii)                                  The Company shall permit the representatives of each Major Investor, at the Major Investor’s expense (other than in connection with regular or special meetings of the Board of Directors, which shall be at the Company’s expense) and upon reasonable prior notice to the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be reasonably requested.

 

(d)                                 Board of Directors.  The Company shall at all times maintain as part of the Board of Directors an audit committee and a compensation committee, each of which shall consist solely of directors who are not employees of the Company.  Any Designee of JAFCO, KPCB, Trident, HLM, or Cardinal may, at his or her option, become a member of either of such committees and shall be entitled to indemnification from the Company pursuant to an indemnification agreement acceptable to JAFCO, KPCB, Trident, HLM, Cardinal and such Designees and to reimbursement from the Company of all reasonable costs of attendance at meetings of the Board of Directors or any committee thereof incurred by such Designees.  The Board of Directors shall have five (5) in-person meetings and one (1) telephonic update with the Company’s senior management per year, unless otherwise agreed upon by the majority of the members of the Board of Directors.

 

(e)                                  Vesting of Awards under the Stock Incentive Plan; Acceleration Upon Change of Control.  Unless otherwise approved by the Board of Directors (or the Compensation Committee thereof), except for Awards granted pursuant to the Gorevic Option, all awards of Capital Stock or Options (as defined in the Stock Incentive Plan) granted pursuant to the Stock Incentive Plan (collectively, “Awards”) granted by the Company to employees (including the Company’s chief executive officer and any other current or subsequently appointed Company officers), directors and consultants after the date hereof, shall be subject to four-year vesting (subject to acceleration in accordance with the immediately subsequent paragraph) as follows: 1/4 of the shares subject to such Awards shall vest on the date that is one year following the grant date (or date of commencement of services as determined by the Board of Directors) and 1/48 of the shares subject to such Awards shall vest at the end of each month thereafter.  If the Board of Directors permits an Option holder to exercise before such Option is fully vested, the Company shall cause such Option holder to enter into an agreement whereby any of such shares that are unvested at the time of such Option holder’s termination as an employee, director or consultant of the Company, with or without cause, may be repurchased by the Company at cost.

 

All employment agreements entered into by and between the Company and any current and future employees following the date of closing of the transactions contemplated by the Series D Purchase Agreement shall provide for terms no more favorable than acceleration of unvested Awards held by such employees upon both: (i) the consummation of a Change of Control; and (ii) the termination of such employee within six (6) months following the Change of Control.

 

(f)                                   Successor Indemnification.  In the event that the Company or any of its successors or assigns (i) consolidates with or merges into any other entity and shall not be the

 

40

 

continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers or conveys all or substantially all of its properties and assets to any Person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of the Company assume the obligations of the Company with respect to indemnification of members of the Board of Directors and officers as in effect immediately prior to such transaction, whether in the Company’s Bylaws, Certificate of Incorporation (as amended), or elsewhere, as the case may be.

 

(g)                                  Securities Laws Compliance.  The Company shall make in a timely manner any filings required by the federal securities laws or securities or blue sky laws of any applicable jurisdiction.

 

(h)                                 Publicity.  The Company shall not refer to any Investors (or any trademark or trade name of such Investor or any Affiliates of such Investor) in any corporate, marketing or promotional material or otherwise identify such Investor as an investor in or business associate of the Company, without the prior written consent of such Investor.

 

(i)                                     Key Man Insurance.  The Company shall maintain a term life insurance policy, payable to the Company, on the life of Jason Gorevic in the amount of $4,000,000.  Such policy shall be maintained by the Company so long as Jason Gorevic is an employee of the Company and shall not be cancelable by the Company without prior approval of the Board of Directors and JAFCO, KPCB, Trident, HLM, and Cardinal.

 

(j)                                    Parties to Agreement.  From and after the date of this Agreement, (i) the Company shall use its reasonable best efforts to cause all holders of greater than 0.5% of its issued and outstanding Capital Stock that are not parties to this Agreement to become parties hereto as Current Holders and (ii) any purchaser of the Company’s Capital Stock may become party to this Agreement as a Current Holder, in each case by execution of a Joinder Agreement in the form attached hereto as Exhibit C, pursuant to which such purchaser will agree to be bound by all terms and conditions of this Agreement, and delivery of the same to the Company.  Upon execution and delivery of the Joinder Agreement, Exhibit B hereto will be automatically amended and updated to include any purchaser(s) executing such Joinder Agreement as Current Holders.

 

(k)                                 No “Bad Actor” Disqualification.

 

(i)                                     The Company has exercised reasonable care to determine whether any Company Covered Person (as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii), as modified by Rules 506(d)(2) and (d)(3), under the Securities Act (“Disqualification Events”).  To the Company’s knowledge, no Company Covered Person is subject to a Disqualification Event.  The Company has complied, to the extent required, with any disclosure obligations under Rule 506(e) under the Securities Act.  For purposes of this Agreement, “Company Covered Persons” are those Persons specified in Rule 506(d)(1) under the Securities Act; provided, however, that Company Covered Persons do not include (a) any Investor, (b) any Person that is deemed to be an affiliated issuer of the Company solely as a result of the relationship between the Company and any Investor or Current

 

41

 

Holder, or (c) any director of the Company that has been designated by any Investor or Current Holder.

 

(ii)                                  Each Investor and each Current Holder represents and warrants that neither (i) such Person, nor (ii) any entity that controls such Person or is under the control of, or under common control with, such Person, nor (iii) any director of the Company that has been designated by such Person, is subject to any Disqualification Event, except for Disqualification Events covered by Rule 506(d)(2)(ii) or (iii) under the Securities Act and disclosed in writing in reasonable detail to the Company.  No party to this Agreement will select a designee that is subject to any Disqualification Event, except for Disqualification Events covered by Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act, in which case such party will promptly disclose in writing to the Company and other parties to this Agreement any and all information necessary for the Company to determine whether Rule 506(d)(2)(ii) or (iii) or (d)(3) applies.

 

(iii)                               Each party to this Agreement represents that it has exercised reasonable care to determine the accuracy of the representations made by it in either Section 12(k)(i) or 12(k)(ii) as applicable, and agrees to notify each other party to this Agreement if it becomes aware of any fact that makes the representations given by it hereunder inaccurate.

 

(iv)                              Notwithstanding any other provision in this Agreement to the contrary, no party to this Agreement will be required to vote for any director or proposed director who is subject to a Disqualification Event, except for Disqualification Events covered by Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act.

 

(l)                                     Treatment of Dividend Conversion Stock.  The Company covenants to treat the issuance of the Series F Preferred Stock in connection with the Dividend Conversion as a return on capital for tax purposes and to issue a 1099-Div to each recipient of such Series F Preferred Stock consistent with such treatment.

 

(m)                             Termination of Covenants.  The covenants set forth in this Section 12, except for Section 12(a), shall terminate and be of no further force or effect upon the consummation of a Qualified Public Offering.

 

13.                               Miscellaneous.

 

(a)                                 Transfers, Successors and Assigns.

 

(i)                                     The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

(ii)                                  Except as expressly set forth herein, the rights of the Investors hereunder are not assignable without the Company’s written consent, except (i) by an Investor to any Affiliate thereof or (ii) to an assignee or transferee who acquires at least ten percent (10%) of the Shares (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction) held by the applicable Investor.  Except as expressly set forth herein or

 

42

 

in connection with an assignment by the Company by operation of law to the acquirer of the Company, the rights and obligations of the Company hereunder may not be assigned under any circumstances.

 

(iii)                               Each transferor or assignor of the Capital Stock subject to this Agreement shall continue to be subject to the terms hereof, and, as a condition to the Company’s recognizing such transfer, each transferee or assignee shall agree in writing to be subject to each of the terms of this Agreement by executing and delivering a Joinder Agreement substantially in the form attached hereto as Exhibit C.  Upon the execution and delivery of a Joinder Agreement by any transferee, such transferee shall be deemed to be a party hereto as if such transferee’s signature appeared on the signature pages of this Agreement.  By execution of this Agreement or of any Joinder Agreement, each of the parties appoints the Company as its attorney in fact for the purpose of executing any Joinder Agreement that may be required to be delivered under the terms of this Agreement.  The Company shall not permit the transfer of any Shares subject to this Agreement on its books or issue a new certificate representing any such Shares unless and until such transferee shall have complied with the terms of this Section 13(a).  Each certificate representing Shares subject to this Agreement if issued on or after the date of this Agreement shall be endorsed by the Company with the legends set forth in Section 6(a).

 

(b)                                 Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to its principles of conflicts of laws.

 

(c)                                  Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may also be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

(d)                                 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

 

(e)                                  Costs of Enforcement.  If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

 

(f)                                   Amendments and Waivers.  Any term of this Agreement may be amended or modified and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Holders constituting at least a Requisite Approval; provided, that any action that materially alters or changes the rights, preferences or privileges of any series of Preferred Stock so as to affect adversely the shares of such series without substantially similar action taken with respect to the other series of Preferred Stock shall require the consent of the holders of a majority of the then outstanding shares of the affected series of Preferred Stock voting as a separate class (provided that any such change affecting each of the Series A Preferred

 

43

 

Stock and Series A-1 Preferred Stock, shall instead require the approval of Holders of a majority of the Series A Preferred Stock and Series A-1 Preferred Stock, voting together as a single class); provided, further, that (i) with respect to any such change affecting the Series C-1 Preferred Stock, such consent shall include all shares of Series C-1 Preferred Stock held by either HLM or Cardinal, (ii) with respect to any such change affecting the Series D Preferred Stock, such consent shall include all shares of Series D Preferred Stock held KPCB, (iii) with respect to any change affecting the Series E Preferred Stock, such consent shall include all shares of Series E Preferred Stock held by either Cardinal or HLM, (iv) with respect to any change affecting the Series F Preferred Stock, such consent shall include all shares of Series F Preferred Stock held by JAFCO, and (v) the right of any of JAFCO, KPCB, HLM, Cardinal or Trident to designate a Designee or Board Observer to the Board of Directors pursuant to Section 7 may not be amended, modified, terminated or waived without such Investor’s prior written consent.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Holder of any Shares then outstanding, each future Holder of Shares and the Company.  The Company shall give prompt written notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination or waiver.  Any amendment, termination or waiver effected in accordance with this Section shall be binding on all parties hereto, even if they do not execute such consent.  No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

(g)                                  Severability.  The invalidity of unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

(h)                                 Aggregation of Stock.  Except as expressly set forth herein, all Shares held or acquired by Affiliates of a Holder shall be aggregated for the purpose of determining the availability of or discharge of any rights under this Agreement.  In addition, a Holder and its Affiliates may allocate among themselves any rights available under this Agreement, in any manner they shall determine in their discretion.  Any such group of Affiliates may designate (in writing) one Person to serve as representative of such group for the purposes of exercising any rights or undertaking any obligations of such group hereunder, and the Company shall be entitled to rely on such designated representative for such purposes.

 

(i)                                     Entire Agreement.  This Agreement, the Certificate of Incorporation of the Company, the Bylaws of the Company and the other Transaction Documents (as defined in the Purchase Agreement) constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.

 

(j)                                    Delays or Omissions; Remedies Cumulative.  No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or

 

44

 

approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

(k)                                 No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring, any party by virtue of the authorship of any of the provisions of this Agreement.

 

(l)                                     Further Instruments.  The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.  Each Current Holder agrees upon the written request of the Company to issue promptly an estoppel certificate to the Company or entity designated by the Company as to facts reasonably required by such entity pertaining to the rights and obligations of the respective parties under this Agreement.

 

(m)                             Notices.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given upon the earlier of (i) actual receipt or (ii) (A) upon personal delivery to the party to be notified, if delivered by hand, (B) when sent by confirmed electronic mail or confirmed facsimile if sent during normal business hours of the recipient; if not, then on the next business day following such transmission, (C) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (D) one (1) business day after the business day of deposit with a nationally recognized overnight courier, specifying next business day delivery, freight prepaid, with written verification of receipt.  All communications shall be sent to the party to be notified at the address as set forth on the signature pages hereof or Exhibit A hereto (or if not set forth thereon at the address on file with the Company) or at such other address or electronic mail address as such party may designate by ten (10) days advance written notice to the other parties hereto.  If notice is given to the Company, a copy shall also be sent to Jackson Walker, L.L.P., 901 Main Street, Suite 6000, Dallas, Texas 75202, Attention: James S. Ryan, III, facsimile (214) 661-6688; and if notice is given to KPCB, a copy shall also be sent to Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, 1200 Seaport Blvd., Redwood City, CA 94063, Attn: Marcia A. Hatch, Facsimile: (887) 881-6112; and if notice is given to Trident, a copy shall also be sent to Wilson Sonsini Goodrich & Rosati, P.C., 900 South Capital of Texas Highway, Las Cimas IV, Fifth Floor, Austin, TX 78746-5546, Attention: J. Robert Suffoletta, facsimile (512) 338-5499; if notice is given to HLM, Cardinal or JAFCO, a copy (which shall not constitute notice) shall also be sent to Cooley LLP, 1700 Seventh Avenue, Suite 1900, Seattle, WA 98101, Attention: Gordon Empey, facsimile (206) 452-8800.

 

(n)                                 Covenants of the Company.  The Company agrees to use its reasonable best efforts to ensure that the rights granted under this Agreement are effective and that the parties enjoy the benefits of this Agreement.  Such actions shall include, without limitation, the use of the Company’s reasonable best efforts to cause the nomination and election of the directors as provided above.  The Company will not, by any voluntary action, avoid or seek to

 

45

 

avoid the observance or performance of any of the terms to be performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all of the provisions of this Agreement and in the taking of all such actions as may be necessary, appropriate or reasonably requested by the Holders of a majority of the outstanding Shares in order to protect the rights of the Holders against impairment.

 

(o)                                 Ownership.  Each Current Holder represents and warrants that he, she or it is the sole legal and beneficial owner of the Shares subject to this Agreement and that no other Person has any interest in such Shares.

 

(p)                                 As-Converted Basis.  Unless otherwise provided expressly herein, all calculations of amounts and percentages of Shares or other shares of the Company’s securities shall be calculated on an as-converted to Common Stock basis without double counting.

 

[SIGNATURES ON THE FOLLOWING PAGES]

 

46

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or caused this Agreement to be executed by their respective representatives thereunto duly authorized, as of the date first above written.

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
TELADOC, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jason   Gorevic
    
	
 
    	
 
    	
Jason   Gorevic
    
	
 
    	
 
    	
Its   Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
Teladoc, Inc.
    
	
 
    	
One   Sound Shore Drive, Suite 300
    
	
 
    	
Greenwich,   CT 06830
    
	
 
    	
Attn:   Jason Gorevic
    
	
 
    	
Facsimile:   (203) 769-1544
    

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JAFCO TECHNOLOGY PARTNERS II, L.P.
    
	
 
    	
 
    
	
 
    	
By: JTP   MANAGEMENT ASSOCIATES II, LLC
    
	
 
    	
Its:     General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas Mawhinney
    
	
 
    	
Name:   Thomas Mawhinney
    
	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JAFCO TECHNOLOGY PARTNERS IV, L.P.
    
	
 
    	
 
    
	
 
    	
By: JTP   MANAGEMENT ASSOCIATES IV, LLC
    
	
 
    	
Its:     General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas Mawhinney
    
	
 
    	
Name:   Thomas Mawhinney
    
	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JAFCO TECHNOLOGY PARTNERS V, L.P.
    
	
 
    	
 
    
	
 
    	
By: JTP   MANAGEMENT ASSOCIATES V, LLC
    
	
 
    	
Its:     General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas Mawhinney
    
	
 
    	
Name:   Thomas Mawhinney
    
	
 
    	
Title:   Managing Director
    

 

 

	
 
    	
INVESTORS (CONT’D)
    
	
 
    	
 
    
	
 
    	
RICHARD KING MELLON FOUNDATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Douglas L. Sisson
    
	
 
    	
Name:   Douglas L. Sisson
    
	
 
    	
Title:   Vice President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MELLON FAMILY INVESTMENT COMPANY V
    
	
 
    	
 
    
	
 
    	
By:   MFIC V, LLC
    
	
 
    	
Its:     General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lawrence S. Busch
    
	
 
    	
Name:   Lawrence S. Busch
    
	
 
    	
Title:   Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Herbert Madan
    
	
 
    	
Herbert   Madan, as trustee for the
    
	
 
    	
HERBERT S. MADAN REVOCABLE TRUST 4/23/97
    

 

 

	
 
    	
INVESTORS (CONT’D)
    
	
 
    	
 
    
	
 
    	
GREENSPRING GLOBAL PARTNERS VI-A, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
GREENSPRING GENERAL PARTNER VI, L.P.
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
GREENSPRING GP VI, LLC
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GREENSPRING ASSOCIATES, INC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Eric Thompson
    
	
 
    	
 
    	
Name: Eric Thompson
    
	
 
    	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GREENSPRING GLOBAL PARTNERS VI-C, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
GREENSPRING GENERAL PARTNER VI, L.P.
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GREENSPRING GP VI, LLC
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GREENSPRING ASSOCIATES, INC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Eric Thompson
    
	
 
    	
 
    	
Name: Eric Thompson
    
	
 
    	
 
    	
Title: Chief Financial Officer
    

 

 

	
 
    	
INVESTORS (CONT’D)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FLAG VENTURE PARTNERS IX, L.P.
    
	
 
    	
 
    
	
 
    	
By: FLAG Private Equity Company IX, L.P., its   general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis Sciarretta
    
	
 
    	
Name:
    	
Louis   Sciarretta
    
	
 
    	
Title:
    	
Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FLAG VENTURE PRIVATE EQUITY V, L.P.
    
	
 
    	
 
    
	
 
    	
By: FLAG Venture Company V, LLC, its general   partner
    
	
 
    	
 
    
	
 
    	
By: FLAG Private Equity Company V, LLC, its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis Sciarretta
    
	
 
    	
Name:
    	
Louis   Sciarretta
    
	
 
    	
Title:
    	
Member
    
				

 

 

	
 
    	
INVESTORS (CONT’D)
    
	
 
    	
 
    
	
 
    	
KPCB   HOLDINGS, INC., as nominee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul M. Vronsky
    
	
 
    	
Name:
    	
Paul M.   Vronsky
    
	
 
    	
Title:
    	
General   Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
c/o Kleiner Perkins Caufield & Byers
    
	
 
    	
2750 Sand Hill Road
    
	
 
    	
Menlo Park, CA 94025
    

 

 

	
 
    	
INVESTORS (CONT’D)
    
	
 
    	
 
    
	
 
    	
HLM   Venture Partners II, L.P.
    
	
 
    	
By:
    	
HLM   Venture Associates II, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Martin Robert Relsenthal
    
	
 
    	
 
    	
Name:   Martin Robert Felsenthal
    
	
 
    	
 
    	
Authorized   Member
    

 

 

	
 
    	
INVESTORS   (CONT’D):
    
	
 
    	
 
    
	
 
    	
CHP   III, L.P.
    
	
 
    	
 
    
	
 
    	
By: CHP   III Management, LLC,
    
	
 
    	
its   General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John J. Park
    
	
 
    	
 
    	
Name:  John J. Park
    
	
 
    	
 
    	
Title:  Managing Member
    

 

 

	
 
    	
INVESTORS   (CONT’D)
    
	
 
    	
 
    
	
 
    	
QUESTMARK PARTNERS IV, L.P.
    
	
 
    	
 
    
	
 
    	
By: QUESTMARK ADVISERS, IV LLC
    
	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael J. Ward
    
	
 
    	
Name: Michael J. Ward
    
	
 
    	
Title: Manager
    

 

 

	
 
    	
INVESTORS   (CONT’D):
    
	
 
    	
 
    
	
 
    	
TRIDENT   CAPITAL FUND-VI, L.P.
    
	
 
    	
TRIDENT   CAPITAL FUND-VI
    
	
 
    	
PRINCIPALS FUND, L.L.C.
    
	
 
    	
 
    
	
 
    	
Executed   on behalf of the foregoing entities by the undersigned, as an authorized   signatory of each such entity and/or its general partner or managing member:
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Arneek Multani
    
	
 
    	
Name:  Arneek Multani
    
	
 
    	
Title:  Authorized Signatory
    
	
 
    	
 
    
	
 
    	
NEW   CAPITAL PARTNERS PRIVATE
    
	
 
    	
EQUITY FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
New   Capital Partners, LLC
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   James K. Outland
    
	
 
    	
 
    	
James   K. Outland
    
	
 
    	
 
    	
Managing   Member
    
	
 
    	
 
    
	
 
    	
WAVELAND   NCP TEXAS VENTURES, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Waveland   NCP Ventures, Inc.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul R. Deslongchamps
    
	
 
    	
 
    	
Paul R.   Deslongchamps
    
	
 
    	
 
    	
Its   Vice President and Secretary
    
	
 
    	
 
    
	
 
    	
COMMONS   CAPITAL, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Commons   Capital Management, LLC
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
William   C. Osborn
    
	
 
    	
 
    	
Its   Managing Member
    

 

 

	
CURRENT HOLDERS:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Michael   Gorton
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Bruce   Quinnell
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dwight   Mishler
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Joan   Mishler
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dan   Patterson, as trustee for the
    	
 
    
	
PATTERSON   BYPASS TRUST
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Gary   Wald
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
G.   Byron Brooks, MD
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Shannan   Lynes
    	
 
    

 

 

	
 
    	
 
    
	
Shelley   Laine
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 as   trustee for the
    	
 
    
	
WILLIAM   MARTIN GILES FAMILY TRUST, DATED MARCH 27, 2007
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Bill   Giles
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Gary   Cino
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dave   Ferguson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Kenneth   Allen
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Gary   Blum
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
GATEWAY   ACCESS
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
				

 

 

	
 
    	
 
    
	
Jerry   White
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sidney   M. Cole
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Derek   DelCarpio
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CARDEN, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Stacy   Cooper
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE   BONDURANT GROUP, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Marsha   Wulff
    	
 
    

 

 

	
 
    	
 
    
	
Dirk   Hansen
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Lynn   Carroll
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
                                           as trustee for the
    	
 
    
	
WILLIAM   HOUSTON TRUST
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
C5   PARTNERS
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Thomas   L. Lutz
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
D.   William Davison
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Roger   Staubach
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Ka   Cotter
    	
 
    

 

 

	
 
    	
 
    
	
LL   Cotter
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Meghal   Antani, MD
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CHEK   INVESTMENTS, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
                                       as custodian for the
    	
 
    
	
JOSEPH   A. FUCHS, IRA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
                                       as custodian for the
    	
 
    
	
TIN-CHEUN   YEUNG, IRA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
John   Zook
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Clifford   Tong
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Bill   Butler
    	
 
    

 

 

	
 
    	
 
    
	
Patricia   Morton
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sheran   James
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Betty   Johnson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Wesley   Choy, MD
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Laura   Carabello
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Kingdon   R. Hughes
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Roger   Moczygemba, MD
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Janet   Jones
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Maria   Hayes, MD
    	
 
    

 

 

	
 
    	
 
    
	
Abhay   Dhir
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Cathy   Fogliano
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
David   Zumwalt
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Fredrick   Johnson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
David   Waldon
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jay   Shafer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Three   J’s LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Scott   Collier
    	
 
    
	
 
    	
 
    
	
CONCERO   GLOBAL, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

 

 

	
 
    	
 
    
	
Richard   J. Boxer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Joel   Ray
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Terry   Tullo
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Alice Addis
    	
 
    
	
Alice   Addis
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Frederick   T. Rikkers
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jason   Gorevic
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Kevin Williamson
    	
 
    
	
Kevin   Williamson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Jeff Nadler
    	
 
    
	
Jeff   Nadler
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Daniel Trencher
    	
 
    
	
Daniel   Trencher
    	
 
    

 

 

	
/s/   Samuel Havens
    	
 
    
	
Samuel   Havens
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Paul   Squire
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Robert Herbold
    	
 
    
	
Robert   Herbold
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Mark Hirschhorn
    	
 
    
	
Mark   Hirschhorn
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Alka Bhargava
    	
 
    
	
Alka   Bhargava
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Gary D. Britton
    	
 
    
	
Gary D.   Britton
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Gioseppina Tripodi
    	
 
    
	
Gioseppina   Tripodi
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Heather Rancic
    	
 
    
	
Heather   Rancic
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Henry DePhillips
    	
 
    
	
Henry   DePhillips
    	
 
    

 

 

	
/s/   Konstantin Karounos
    	
 
    
	
Konstantin   Karounos
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Lon   Hecht
    	
 
    
	
Lon   Hecht
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Marc Adelson
    	
 
    
	
Marc   Adelson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Michael Timothy Sandwith
    	
 
    
	
Michael   Timothy Sandwith
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Michael King
    	
 
    
	
Michael   King
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Paul Reilly
    	
 
    
	
Paul   Reilly
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Paul W. Kowalski
    	
 
    
	
Paul W.   Kowalski
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Rana Dutt
    	
 
    
	
Rana   Dutt
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Robert Bressler
    	
 
    
	
Robert   Bressler
    	
 
    

 

 

	
/s/   Thomas Seaman
    	
 
    
	
Thomas   Seaman
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   William Daniel Bradshaw III
    	
 
    
	
William   Daniel Bradshaw III

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]