Document:

Document

Exhibit 10.1

NEUROPACE, INC.
AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT
This Amended and Restated Investors’ Rights Agreement (this “Agreement”) is made as of August 19, 2020, by and among NeuroPace, Inc., a Delaware corporation (the “Company”), the holders of the Company’s Common Stock (“Common Stock”) and the holders of the Company’s Preferred Stock listed on Exhibit A hereto (the “Non-Founder Investors”), and Robert Fischell, David Fischell, 1455903 Ontario Limited, Tim Fischell, Scott Fischell, Rebecca L. Kuhn, Frank M. Fischer and Martha Morrell (the “Founders,” and together with the Non-Founder Investors, the “Investors”).  Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Purchase Agreement (defined below).
RECITALS
A.The Company, the Existing Investors (as defined in the Prior Agreement (as defined below)), the Founders and certain of the New Investors (as defined in the Prior Agreement)  have entered into an Amended and Restated Investors’ Rights Agreement dated as of July 25, 2017 (the “Prior Agreement”), pursuant to which the Company granted them certain rights.
B.The Company and certain of the Non-Founder Investors are parties to that certain Series B’ Preferred Stock Purchase Agreement (the “Purchase Agreement”) of even date herewith pursuant to which the Company desires to sell to certain of the Non-Founder Investors and certain of the Non-Founder Investors desire to purchase from the Company, shares of the Company’s Series B’ Preferred Stock (the “Series B’ Preferred Stock” and together with the Company’s Series A’ Preferred Stock, the “Preferred Stock”). 
C.A condition to certain of the Non-Founder Investors’ obligations under the Purchase Agreement is that the Company and the Investors enter into this Agreement in order to provide the Non-Founder Investors with, among other things, (i) certain rights to register shares of the Common Stock issuable upon conversion of the Preferred Stock held by the Investors, (ii) certain rights to receive or inspect information pertaining to the Company, and (iii) a right of first offer with respect to certain issuances by the Company of its securities.  As an inducement to those Non-Founder Investors purchasing the Series B’ Preferred Stock pursuant to the Purchase Agreement on the date hereof, the Company, the Existing Investors and the Founders desire and agree to amend and restate the Prior Agreement in its entirety.
D.Pursuant to Section 3.7 of the Prior Agreement, the Prior Agreement may be amended under certain circumstances with the written consent of (1) the Company and (2) the Requisite Investors (for this purpose as defined in the Prior Agreement) (collectively, such parties, the “Required Parties”).
E.The undersigned parties constitute the Required Parties necessary to amend and restate the Prior Agreement. 

F.On September 20, 2016, the requisite holders of the Company’s then outstanding preferred stock elected to convert all then-outstanding shares of the Company’s preferred stock (the “Prior Preferred Stock”) into shares of Common Stock (the “Recapitalization”).
AGREEMENT
The parties hereby agree as follows:
1.Registration Rights.  The Company and the Investors covenant and agree as follows:
1.1Definitions.
(a)The terms “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 of 1933, as amended (the “Securities Act”), and the declaration or ordering of effectiveness of such registration statement or document;
(b)The term “Registrable Securities” means:
(i)the shares of Common Stock issued or issuable upon conversion of the Company’s Series B’ Preferred Stock, the Company’s Series A’ Preferred Stock and the shares of Common Stock issued upon the conversion of Prior Preferred Stock pursuant to the Recapitalization, and any assignees thereof in accordance with Section 1.11 of this Agreement, including shares of Common Stock issuable or issued upon exercise of the warrants to purchase shares of Common Stock, which, prior to the Recapitalization, represented warrants to purchase Prior Preferred Stock; 
(ii)the shares of Common Stock issued to or held by the Founders (the “Founders’ Stock”), provided, however, that for the purposes of Sections 1.2, 1.4, 1.12, 2 and 3.7 the Founders’ Stock shall not be deemed Registrable Securities and the Founders shall not be deemed Holders; and
(iii)any other shares of Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares listed in (i) and (ii); provided, however, that the foregoing definition shall exclude in all cases any Registrable Securities sold by a person in a transaction in which his or her rights under this Agreement are not assigned.  Notwithstanding the foregoing, Common Stock or other securities shall only be treated as Registrable Securities if and so long as they have not been (A) sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction, or (B) sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(a)(1) thereof so that all transfer restrictions, and restrictive legends with respect thereto, if any, are removed upon the consummation of such sale.

(c)The number of shares of “Registrable Securities then outstanding” shall be determined by the number of shares of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities issued or issuable upon conversion of Preferred Stock;
(d)The term “Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.11 hereof;
(e)The term “Form S-3” means such form under the Securities Act as in effect on the date hereof or any successor form under the Securities Act;
(f)The term “SEC” means the Securities and Exchange Commission;
(g)The term “Requisite Investors” means Holders of a majority of the Registrable Securities issued or issuable upon conversion of Preferred Stock;
(h)The term “Restated Charter” shall mean the Company’s Amended and Restated Certificate of Incorporation, as amended and/or restated and in effect from time to time; 
(i)The term “Series Preferred Director” shall have the meaning ascribed to such term in the Restated Charter;
(j)The term “Series Preferred Director Majority” shall have the meaning ascribed to such term in the Restated Charter; and 
(k)The term “Affiliates” when referring to any Investor shall mean any entity controlling, controlled by, or under common control with such Investor (if the Investor is a business entity) or its general or limited partners.
1.2Request for Registration.
(a)If the Company shall receive at any time after the earlier of (i) five (5) years after the date of this Agreement or (ii) six (6) months after the effective date of the first registration statement for a public offering of securities of the Company (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 written request from the Holders of at least thirty percent (30%) of the Registrable Securities then outstanding that the Company file a registration statement under the Securities Act covering the registration of  Registrable Securities having an anticipated aggregate offering price, net of underwriting discounts and commissions, of at least $10,000,000, then the Company shall, within ten (10) days of the receipt thereof, give written notice of such request to all Holders and shall, subject to the limitations of Subsection 1.2(b), use its best efforts to effect as soon as practicable, the registration under the Securities Act of all Registrable Securities which the Holders request to be 

registered within fifteen (15) days of the mailing of such notice by the Company in accordance with Section 3.5.
(b)If the Holders initiating the registration request hereunder (“Initiating Holders”) 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 this Section 1.2 and the Company shall include such information in the written notice referred to in Subsection 1.2(a).  The underwriter will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Initiating Holders.  In such event, the right of any Holder to include his Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Subsection 1.5(e)) enter into an underwriting agreement with customary terms and conditions.  Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each Holder; provided, however, that the number of shares of Registrable Securities to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting and, provided, further, however, that the number of shares of Registrable Securities issued or issuable upon conversion of the Preferred Stock shall not be reduced unless all other Registrable Securities are first entirely excluded from the underwriting.
(c)Notwithstanding the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2, a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors of the Company (the “Board of Directors”), it would be seriously detrimental to the Company and its stockholders for such registration statement to be filed and it is therefore essential to defer the filing of such registration statement, the Company shall have the right to defer such filing for a period of not more than 120 days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve-month period.
(d)In addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this Section 1.2:
(i)After the Company has effected two (2) registrations pursuant to this Section 1.2 and such registrations have been declared or ordered effective;
(ii)Within one hundred eighty (180) days after the effective date of a registration subject to Section 1.3 hereof; or 

(iii)If the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 1.4 below.
1.3Company Registration.  If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its stock under the Securities Act in connection with the public offering of such securities solely for cash (other than a registration relating solely to the sale of securities to participants in a Company stock plan or a transaction covered by Rule 145 under the Securities Act, or any registration on any form other than SEC Forms S-1, S-2 or S-3 or their successor forms or any successor to such forms which do not permit secondary sales), the Company shall, at such time, promptly give each Holder written notice of such registration.  Upon the written request of each Holder given within fifteen (15) days after mailing of such notice by the Company in accordance with Section 3.5, the Company shall, subject to the provisions of Section 1.8, cause to be registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered.  The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration.  The expenses of such registration shall be borne by the Company in accordance with Section 1.7 hereof.
1.4Form S-3 Registration.  In case the Company shall receive from any Holder or Holders of not less than thirty percent (30%) of the Registrable Securities then outstanding a written request or requests that the Company effect 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 Holder or Holders, the Company will:
(a)promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and
(b)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 Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within 15 days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 1.4:  (i) if Form S-3 is not available for such offering by the Holders; (ii) if the Holders, 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; (iii) if the Company shall furnish to the Holders a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors, it would be seriously detrimental to the Company and its stockholders 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 120 days after receipt of the request of the Holder or Holders under this Section 1.4; provided, however, that the Company shall not utilize this right more than once in any twelve month period; (iv) if the Company has, within the twelve (12) month period preceding the date of such request, already effected two registrations on Form S-3 for the Holders pursuant to this Section 1.4; or (v) 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.
(c)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 Holders.  Registrations effected pursuant to this Section 1.4 shall not be counted as demands for registration or registrations effected pursuant to Sections 1.2 or 1.3, respectively.
1.5Obligations of the Company.  Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:
(a)Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for up to one hundred twenty (120) days or until the distribution contemplated in the Registration Statement is completed; provided, however, that (i) such 120-day period shall be extended for a period of time equal to the period the Holder refrains from selling any securities included in such registration at the request of an underwriter of Common Stock (or other securities) of the Company; 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, such 120-day period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold, provided that Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous or delayed basis.
(b)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 for up to one hundred twenty (120) days or such extended period in accordance with Subsection 1.5(a).
(c)Furnish to the Holders 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.
(d)Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as 

shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.
(e)In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering.  Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.
(f)Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, such obligation to continue for one hundred eighty (180) days.
(g)Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then listed.
(h)Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration.
(i)Use its best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (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 to the Holders requesting registration of Registrable Securities and (ii) a 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 to the Holders requesting registration of Registrable Securities.
1.6Furnish Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s Registrable Securities.

1.7Expenses of Registration.  All expenses (other than underwriting discounts and commissions) incurred in connection with registrations, filings or qualifications pursuant to Sections 1.2, 1.3 and 1.4, 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 Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld, shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses), unless the Requisite Investors agree to forfeit their right to one demand registration pursuant to Section 1.2; provided further, however, that if at the time of such withdrawal, the Holders have learned of a material adverse change in the condition, business or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness following disclosure by the Company of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 1.2
1.8Underwriting Requirements.  In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it, 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 amount of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds, in the underwriters sole discretion, the amount of securities that can be sold, other than by the Company, successfully in 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 determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling stockholders according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions as shall mutually be agreed to by such selling stockholders) but in no event shall (i) the amount of securities of the selling Holders 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 initial public offering of the Company’s securities in which case the selling stockholders may be excluded if the underwriters make the determination described above and no other stockholder’s securities are included or (ii) notwithstanding (i) above, any shares being sold by a stockholder exercising a demand registration right similar to that granted in Section 1.2 be excluded from such offering or (iii) any securities held by a Founder be included if any securities held by any selling Holder other than the Founders are excluded.  For purposes of the preceding sentence concerning apportionment, for any selling stockholder which is a holder of Registrable Securities and which is a partnership or corporation, the partners, retired partners and stockholders of such holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling stockholder,” and any pro-rata reduction with 

respect to such “selling stockholder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling stockholder,” as defined in this sentence.  In addition, the number of shares of Registrable Securities issued or issuable upon conversion of the Preferred Stock shall not be reduced from such underwriting unless all other Registrable Securities are first entirely excluded from the underwriting.  Any Registrable Securities excluded or withdrawn from any underwriting shall be withdrawn from the registration.  To facilitate the allocation of shares in accordance with the above provisions, the Company or managing underwriter may round the number of shares allocated to the nearest one hundred (100) shares.  If any Holder of Registrable Securities disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written notice to the Company, the managing underwriter and the Initiating Holders delivered at least twenty (20) days prior to the anticipated date of the registration statement.  The Registrable Securities so withdrawn shall not be transferred in a public distribution prior to ninety (90) days after the effective date of such registration or such longer period (not to exceed one hundred eighty (180) days) of time the managing underwriter may require.
1.9Indemnification.  In the event any Registrable Securities are included in a registration statement under this Section 1:
(a)To the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), against any losses, claims, damages, or liabilities (joint or several) to which they 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 (collectively a “Violation”):  (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus, 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 the Company 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; and the Company will pay to each such Holder, underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Subsection 1.9(a) 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 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 Holder, underwriter or controlling person.

(b)To the extent permitted by law, each selling Holder will 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, 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 Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this Subsection 1.9(b), in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Subsection 1.9(b) 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 Holder, which consent shall not be unreasonably withheld; provided, that in no event shall any indemnity under this Subsection 1.9(b) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder.
(c)Promptly after receipt by an indemnified party under this Section 1.9 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 1.9, 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 reasonable 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, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.9, but the omission to so 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 1.9.
(d)If the indemnification provided for in this Section 1.9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand 

and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided, that in no event shall any contribution by a Holder under this Subsection 1.9(d) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
(e)Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.
(f)The obligations of the Company and Holders under this Section 1.9 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise.
1.10Reports Under Securities Exchange Act of 1934.  With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:
(a)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 remains subject to the periodic reporting requirements under Sections 13 or 15(d) of the Exchange Act;
(b)take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities;
(c)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; and
(d)furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after the effective date of the first registration statement filed by the Company), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and 

documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form.
1.11Assignment of Registration Rights.  The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities that after such assignment or transfer holds at least 200,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations and other recapitalizations); provided 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; and provided, further, that 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; and provided, further, that the restrictions set forth in this Section 1.11 shall not apply to the transfer of registration rights by a Holder that is a partnership or a limited liability company to a partner or member of such a partnership or company or a former partner or former member of such partnership or company who leaves such partnership or company after the Initial Closing Date (as defined in the Purchase Agreement), or to the estate of any such partner or former partner or the transfer by gift, will or intestate succession of any partner to his spouse or lineal descendants or ancestors so long as the Company is given written notice by such Holder at the time of or within a reasonable time after said transfer, stating the name and address of said transferee or assignee and identifying the securities with respect to which such registration rights are being assigned, and such transferee has agreed to comply with the obligations of this Section 1.11.
1.12Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior written consent of the Requisite Investors, enter into any agreement with any holder or prospective holder of any securities of the Company that (1) would allow such holder or prospective holder to include such securities in any registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the number of the Registrable Securities of the Holders that are included or (2) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder.
1.13“Market Stand-Off” Agreement. In connection with the initial public offering of the Company’s securities (“IPO”), each Holder hereby agrees that, during the period of duration (up to, but not exceeding, 180 days, but subject to such extension or extensions as may be required by the underwriters in order to publish research reports while complying with Rule 2241 of the Financial Industry Regulatory Authority, or any successor provisions or amendments thereto) specified by the Company or the underwriters managing such offering of Common Stock or other securities of the Company, following the effective date of such registration statement, it shall not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short 

sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any securities of the Company held by it at any time during such period except Common Stock included in such registration. The foregoing provisions of this Section 1.13 shall apply only to the IPO and shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, the sale of any shares acquired in the open market after the IPO, or the transfer of any shares to any trust for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value. The restrictions in this Section 1.13 shall be applicable to the Holders only if all officers, directors and stockholders individually (and with their Affiliates) owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock) are subject to the same restrictions.  The underwriters in connection with such registration are intended third-party beneficiaries of this Section 1.13 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 of any or all of such agreements by the Company or the underwriters shall apply to all Investors subject to such agreements pro rata based on the number of shares subject to such agreements.
In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period, and each Holder agrees that, if so requested, such Holder will execute an agreement in the form provided by the underwriter containing terms which are essentially consistent with the provisions of this Section 1.13.
Notwithstanding the foregoing, the obligations described in this Section 1.13 shall not apply to a registration relating solely to employee benefit plans on Form S-8 or successors thereto which may be promulgated in the future, or a registration relating solely to an SEC Rule 145 transaction on Form S-4 or similar forms which may be promulgated in the future.
1.14Termination of Registration Rights.  No Holder shall be entitled to exercise any right provided for in this Section 1 after the earlier of (i) five (5) years following the consummation of the sale of securities pursuant to a registration statement filed by the Company under the Securities Act in connection with the initial firm commitment underwritten offering of its securities to the general public, or (ii) such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares during any three (3)-month period without registration.
2.Covenants of the Company.
2.1Delivery of Financial Statements.  The Company shall deliver to each Investor who (together with its general partners and Affiliates) holds not less than 1,100,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock 

dividends, combinations and other recapitalizations) issued or issuable upon conversion of Preferred Stock (a “Major Investor”):
(a)as soon as practicable, but in any event within two hundred seventy days (270) days after the end of each fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the Company and statement of stockholder’s equity as of the end of such year, and a statement of cash flows for such year, such year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted accounting principles (“GAAP”), and audited and certified by an independent public accounting firm of nationally recognized standing selected by the Company;
(b)as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, an unaudited profit or loss statement, a statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter, such quarter-end financial reports to be in reasonable detail and prepared in accordance with generally accepted accounting principles (except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii) not contain all notes thereto that may be required in accordance with generally accepted accounting principles);
(c)within thirty (30) days of the end of each month, an unaudited income statement and balance sheet for and as of the end of such month, such month-end financial reports to be in reasonable detail;
(d)as soon as practicable, but in any event thirty (30) days prior to the end of each fiscal year, an annual budget and business plan for the next fiscal year, including balance sheets and sources and applications of funds statements;
(e)promptly after the commencement thereof, notice of (i) all actions, suits and proceedings before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the Company (or any subsidiary) which, if successful, would have a Material Adverse Effect (as defined in the Purchase Agreement) on the Company; and (ii) all material defaults by the Company or any subsidiary (whether or not declared) under any agreement for money borrowed (unless waived or cured within applicable grace periods); and
(f)such other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major Investor may from time to time reasonably request; provided, however, that the Company shall not be obligated under this Subsection 2.1(f) to provide information (i) that the Company reasonably determines in good faith to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in a form acceptable to the Company); or (ii) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.
2.2Inspection.  The Company shall permit each Major Investor, at such Major Investor’s expense, to visit and inspect the Company’s properties, to examine its books of 

account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be requested by the Major Investor; provided, however, that the Company shall not be obligated pursuant to this Section 2.2 to provide access to any information which it reasonably considers to be a trade secret or similar confidential information.
2.3Right of First Offer.  Subject to the terms and conditions specified in this Section 2.3, the Company hereby grants to each Major Investor, a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined).  A Major Investor who chooses to exercise the right of first offer may designate as purchasers under such right itself or its partners or affiliates in such proportions as it deems appropriate.
Each time the Company proposes to offer any shares of, or securities convertible into or exercisable for any shares of, any class of its capital stock (“Shares”), the Company shall first make an offering of such Shares to each Major Investor in accordance with the following provisions:
(a)The Company shall deliver a notice by certified mail (“Notice”) to the Major Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such Shares.
(b)Within 20 calendar days after delivery of the Notice, any Major Investor may elect to purchase or obtain, at the price and on the terms specified in the Notice, up to that portion of such Shares which equals the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by such Major Investor, other than, if applicable, Founders’ Stock and options to purchase Common Stock, bears to the total number of shares of Common Stock then outstanding (assuming full conversion and exercise of all convertible or exercisable securities) (“Ratable Portion”).  At the expiration of such 20-day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each, a “Fully Exercising Investor”) of any other Major Investor’s failure to do likewise.  During the ten (10)-day period commencing after receipt of such information, each Fully Exercising Investor shall be entitled to obtain, by giving notice to the Company, in addition to the Ratable Portion specified above, up to that portion of Shares for which Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which equals the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by such Fully Exercising Investor, other than, if applicable, Founders’ Stock and options to purchase Common Stock, bears to the total number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares, other than, if applicable, Founders’ Stock and options to purchase Common Stock.
(c)The Company may, during the 45-day period following the expiration of the period provided in Subsection 2.3(b) hereof, offer the remaining unsubscribed 

portion of the Shares to any person or persons at a price not less than, and upon terms no more favorable to the offeree than those specified in the Notice.  If the Company does not enter into an agreement for the sale of the Shares within such period, or if such agreement is not consummated within 60 days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Major Investors in accordance herewith.
(d)The right of first offer in this Section 2.3 shall not be applicable to securities excluded from the definition of “Additional Stock” pursuant to Article V(B)(4)(d)(ii) of the Company’s Restated Charter.
2.4Employee Matters.  The Company shall have each officer and employee of the Company execute the Company’s standard form of invention assignment and confidentiality information agreements, which form shall be reasonably acceptable to the Major Investors, prior to disclosing any proprietary information to any such officer or employee.  The Company will use commercially reasonable efforts to prevent any employee from violating the confidentiality and proprietary information agreement entered into between the Company and such employee.  The Company shall use reasonable efforts to ensure that the Company’s employees, during the term of their employment with the Company, do not engage in activities which would result in a conflict of interest with the Company.
2.5Stock Options.  Unless otherwise approved by the Board of Directors (including the Series Preferred Director Majority), all stock options and other stock equivalents which are issued after the date of this Agreement to new employees, consultants and other service providers to the Company shall be subject to vesting as follows: (a) twenty-five percent (25%) of such stock shall vest at the end of the first year following the earlier of the date of issuance or such person’s services commencement date with the Company, and (b) seventy-five percent (75%) of such stock shall vest over the remaining three (3) years in equal monthly installments, with no acceleration of vesting upon any event. Unless otherwise approved by the Board of Directors (including the Series Preferred Director Majority), all stock options and other stock equivalents which are issued after the date of this Agreement to employees, consultants and other service providers to the Company shall be subject to vesting as follows: one hundred percent (100%) of such stock shall vest over four (4) years in equal monthly installments, with no acceleration of vesting upon any event. With respect to any shares of stock purchased by any such person, the Company will maintain a right of first refusal over such shares, whether vested or unvested and a repurchase option at cost upon such person’s termination of employment or service with the Company, with or without cause, over any unvested shares held by such person. 
2.6Board of Directors Matters.  
(a)Unless otherwise decided by the Board of Directors, including the Series Preferred Director Majority, the Board of Directors shall hold at least five (5) meetings during each fiscal year with a minimum of one (1) meeting to be held during each fiscal quarter.  

(b)The Company shall reimburse all non-employee directors for all direct out-of-pocket expenses reasonably and customarily incurred by directors in attending such meetings and attending events on behalf of and at the request of the Company.  
(c)So long as the holders of Preferred Stock are entitled to elect a Series Preferred Director, the Company hereby covenants and agrees with each of the Investors that it shall not, without approval of the Board of Directors, which approval must include the affirmative vote of the Series Preferred Director Majority:
(i)make, or permit any subsidiary to make, any loan or advance to, or own any stock or other securities of, any subsidiary or other corporation, partnership, or other entity unless it is wholly owned by the Company; 
(ii)make, or permit any subsidiary to make, any loan or advance to any person or entity, including, without limitation, any employee or director of the Company or any subsidiary, except advances and similar expenditures in the ordinary course of business or under the terms of an employee stock or option plan approved by the Board of Directors (including the Series Preferred Director Majority); 
(iii)guarantee, directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the Company or any subsidiary arising in the ordinary course of business;  
(iv)make any investment inconsistent with any investment policy approved by the Board of Directors; 
(v)incur any aggregate indebtedness in excess of $100,000 that is not already included in a budget approved by the Board of Directors, other than trade credit incurred in the ordinary course of business; 
(vi)otherwise enter into or be a party to any transaction with any director, officer, or employee of the Company (or any immediate family member), any stockholder of the Company, or any company or entity directly or indirectly controlled by an officer, director or stockholder of the Company, including without limitation any “management bonus” or similar plan providing payments to employees in connection with a Liquidation Event, as such term is defined in the Restated Charter, except for (1) transactions contemplated by this Agreement or the Purchase Agreement, (2) advances in reasonable amounts made to employees of the Company or any subsidiary for valid business purposes, provided that such advances are repaid to the Company within ninety (90) days, (3) salaries, bonuses and other compensation earned by non-executive level employees or consultants of the Company in the ordinary course of business, (4) consulting agreements and employment offer letters with non-executive level employees made in the ordinary course of business and (5) reimbursements of business-related expenses upon receipt by the Company of appropriate supporting documentation;
(vii)hire, terminate, or change the compensation of the executive officers, including approving any option grants or stock awards to executive officers; 

(viii)change the principal business of the Company, enter new lines of business, or exit the current line of business; 
(xi)sell, assign, license, pledge, or encumber material technology or intellectual property, other than licenses granted in the ordinary course of business;
(xii)create a direct or indirect subsidiary;  
(xiii)enter into any corporate strategic relationship involving the payment, contribution, or assignment by the Company or to the Company of money or assets greater than $100,000; or
(xiv)amend that certain Change of Control Policy dated February 23, 2010, as amended on or around the date hereof.
(d)So long as Johnson and Johnson Development Corporation (“JJDC”) owns at least 100,000 shares of capital stock of the Company, JJDC shall have the right to designate one nonvoting observer (“JJDC Observer”) to the Board of Directors; provided that any such JJDC Observer shall execute the Company’s form of board observation letter.  This covenant shall terminate upon the date of consummation of a firm commitment underwritten public offering of the Common Stock registered under the Securities Act if this occurs earlier than the events described in Section 2.11 below.
(e)So long as Accelmed Partners II LP (“Accelmed”) owns Preferred Stock, Accelmed shall have the right to designate one nonvoting observer (“Accelmed Observer”) to the Board of Directors; provided that any such Accelmed Observer shall execute the Company’s form of board observation letter.  This covenant shall terminate upon the date of consummation of a firm commitment underwritten public offering of the Common Stock registered under the Securities Act if this occurs earlier than the events described in Section 2.11 below.
(f)Unless otherwise consented to by the Holders of a majority of the outstanding Preferred Stock, Series Preferred Directors shall comprise a majority of any committee of the Board of Directors.
2.7Director and Officer Insurance.  The Company will use its best efforts to maintain in full force and effect, unless approved by the Board of Directors, including the Series Preferred Director Majority, director and officer liability insurance from financially sound and reputable insurers in an amount deemed appropriate by the Board of Directors, which amount may not be less than two million dollars ($2,000,000). The Company shall annually, within one hundred twenty (120) days after the end of each fiscal year of the Company, deliver to each Series Preferred Director a certification that such a Directors and Officers liability insurance policy remains in effect.  

2.8Successor Indemnification.  If the Company or any of its successors or assignees consolidates with or merges into any other entity and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members of the Board of Directors as in effect immediately before such transaction, whether such obligations are contained in the Company’s Bylaws, its Restated Charter, or elsewhere, as the case may be.
2.9Right to Conduct Activities.  The Company hereby agrees and acknowledges that each of KCK Ltd. (“KCK”), OrbiMed Private Investments VI, LP  (“OrbiMed”), Accelmed, and Leerink Revelation Partners, LLC (together with their respective Affiliates, the “Investor Parties” and each an “Investor Party”) is a professional investment fund, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company’s business (as currently conducted or as currently proposed to be conducted).  The Company hereby agrees that, to the extent permitted under applicable law, no Investor Party shall be liable to the Company for any claim arising out of, or based upon, (i) the investment by such Investor Party or its Affiliates in any entity competitive with the Company, or (ii) actions taken by any Affiliate, partner, officer or other representative of such Investor Party to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve (x) any of the Investor Parties from liability associated with the unauthorized disclosure of the Company’s confidential information obtained pursuant to this Agreement, or (y) any director or officer of the Company from any liability associated with his or her fiduciary duties to the Company.  
2.10Confidentiality. Each Holder agrees that such Holder will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company or to provide services to the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 2.10 by such Holder), (b) is or has been independently developed or conceived by an Investor without use of the Company’s confidential information, or (c) is or has been made known or disclosed to the Holder by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that (i) a Holder may disclose confidential information to its attorneys, accountants, consultants, auditors and other professionals to the extent necessary or reasonably appropriate to obtain their services in connection with monitoring its investment in the Company; (ii) an Investor may disclose confidential information to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Section 2.10; (iii) an Investor may disclose confidential information to any existing, former or prospective Affiliate, partner, limited partner, general partner, member, stockholder or wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such person or entity that such information is confidential and directs such person or 

entity to maintain the confidentiality of such information; (iv) any Holder may disclose confidential information as may otherwise be required by law, provided that the Holder promptly notifies the Company of such disclosure (if legally permitted) and takes reasonable steps (at the expense of the Company) to minimize the extent of any such required disclosure; (v) any Holder may disclose confidential information as required by any court or other governmental body, provided that the Holder promptly notifies the Company (if legally permitted) of such disclosure and takes reasonable steps (at the expense of the Company) to minimize the extent of any such required disclosure; (vi) any Holder may disclose confidential information in connection with the interpretation or enforcement of this Agreement or any Related Agreement (as defined in the Purchase Agreement), any management rights letter or indemnification agreement; (vii) any Holder may disclose confidential information to comply with applicable law, statutes, rules or regulations or pursuant to any direction, request or requirement (whether or not having the force of law but if not having the force of law being of a type with which institutional investors in the relevant jurisdiction are accustomed to comply) of any self-regulating organization or any governmental, fiscal, monetary or other authority; (viii) any Investor may disclose confidential information for internal market, industry and investment analyses; or (ix) any Investor may disclose confidential information to Affiliates, officers, employees, agents, directors, partners, parent or subsidiaries to the extent necessary to obtain their services in connection with monitoring its investment in the Company. This Section 2.10 shall supersede any confidentiality agreement executed by OrbiMed Private Investments VI, LP or any of its Affiliates and the Company prior to the date hereof. The Company acknowledges that each of the Investor Parties are or may be in the business of venture capital investing and, therefore, review business plans and other materials containing proprietary information of many enterprises, including enterprises which may have products or services which compete directly or indirectly with those of the Company and that have and may provide to the Investor Parties, ideas, plans or other information which is similar to that embodied in the confidential information of the Company and nothing in this Agreement shall preclude or in any way restrict the Investor Parties from investing in any particular enterprise (including but not limited to participating fully as a member of the board of directors in such enterprise) whether or not such enterprise has products or services which compete with those of the Company.  The Company acknowledges that some knowledge may be gained by the Investor Parties from reviewing the confidential information of the Company that cannot be separated from any of the Investors Parties’ overall knowledge and, provided that the Investor Parties do not disclose any confidential information of the Company to a third party in violation of this Agreement, including any companies in which any of the Investor Parties invests, such general industry knowledge shall be permitted to be used in the ordinary course of business of each of the Investor Parties.  
For the avoidance of doubt, this Section 2.10 shall not supersede any confidentiality provisions in any agreement between the Company and any employee or consultant, including without limitation, in any employment agreement, consulting agreement or invention assignment and confidentiality information agreement. 

2.11Termination of Covenants.  The covenants set forth in Sections 2.1 through Section 2.7 shall terminate upon the earliest to occur of any one of the following events:
(a)Upon closing of a firm commitment underwritten public offering by the Company of shares of its Common Stock pursuant to a registration statement on Form S-1 under the Securities Act of 1933, as amended where all outstanding Preferred Stock converts to Common Stock; or
(b)The sale, conveyance, disposal, or encumbrance of all or substantially all of the Company’s property or business or the Company’s merger into or consolidation with any other corporation (other than a wholly-owned subsidiary corporation) or if the Company effects any other transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Company is disposed of, provided that this Subsection 2.11(b) shall not apply to a merger effected exclusively for the purpose of changing the domicile of the Company.  
The covenants set forth in Sections 2.1 and 2.2 shall terminate as to each Investor and be of no further force or effect when the Company first becomes subject to the periodic reporting requirements of Sections 13 or 15(d) of the Exchange Act, if this occurs earlier than the events described in (a) or (b) above.
3.Miscellaneous.
3.1Successors and Assigns.  Except as otherwise provided herein, 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 (including transferees of any Preferred Stock or any Common Stock issued upon conversion thereof).  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.
3.2Governing Law; Exclusive Forum.  This Agreement and all acts and transactions pursuant hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of laws. The state courts of the State of Delaware shall be the sole and exclusive forum for any party to this Agreement to bring any action, claim or dispute arising pursuant or related to or in connection with this Agreement or the transactions contemplated hereby, and the rights and obligations of the parties hereto.
3.3Counterparts.  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.
3.4Titles 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.

3.5Notices.  Unless otherwise provided, any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by overnight courier or sent by telegram, fax or electronic-mail, or forty-eight (48) hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address or fax number as set forth below or on Exhibit A hereto or as subsequently modified by written notice.
3.6Expenses.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.
3.7Amendments and Waivers.  Any term of this Agreement may be amended 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 (1) the Company and (2) the Holders of a majority of the outstanding Preferred Stock (provided that, following a public offering of the Company’s securities in which all such outstanding Preferred Stock have been converted into the Company’s Common Stock, this subclause (2) shall constitute instead the Holders of a majority of the shares of Registrable Securities then outstanding); provided that if such amendment has the effect of affecting the Founders’ Stock both (i) in a manner different than Registrable Securities held by the Investors and (ii) in a manner adverse to the interests of the holders of the Founders’ Stock, then such amendment shall require the consent of the holder or holders of a majority of the Founders’ Stock who are then providing services to the Company as officers, directors, employees or consultants; provided further, that any amendment or waiver (i) that eliminates, reduces or adversely affects any rights of, or that imposes any additional obligations on any New Holder (as defined in the Purchase Agreement), KCK or OrbiMed in a manner different from other New Holders or other Investors under this Agreement shall require the written consent of such affected New Holder, KCK or OrbiMed, respectively, unless such New Holder, KCK or OrbiMed, respectively, is a Defaulting Purchaser (as defined in the Purchase Agreement), (ii) of Section 2.6(e) shall require the written consent of Accelmed so long as Accelmed owns Preferred Stock, and (iii) of this Section 3.7 that eliminates, reduces or adversely affects the consent rights of any New Holder, KCK or OrbiMed contained in this Section 3.7 in a manner different from other New Holders, KCK or OrbiMed under this Agreement shall require the written consent of such affected New Holder, KCK or OrbiMed, respectively, unless such New Holder, KCK or OrbiMed, respectively, is a Defaulting Purchaser. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities then outstanding, each future holder of all such Registrable Securities and the Company.  Notwithstanding the foregoing, this Agreement may be amended with only the written consent of the Company and the Holders of a majority of the outstanding Preferred Stock to add any new parties to this Agreement as Founders, Investors and/or Holders.
3.8Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of this Agreement shall be enforceable in accordance with its terms.

3.9Aggregation of Stock.  All shares of Preferred Stock held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.
3.10Amendment and Restatement of Prior Agreement.  Effective and contingent upon execution of this Agreement by the Required Parties, the Prior Agreement is hereby declared null and void and is amended and restated in its entirety to read as set forth in this Agreement, and the Company and the Investors hereby agree to be bound by the provisions hereof as the sole agreement of the Company and the Investors with respect to registration rights of the Company’s securities and certain other rights as set forth herein.
3.11Entire Agreement.  This instrument contains the entire understanding of the parties with respect to the subject matter hereof and cannot be altered or otherwise amended except pursuant to the provisions of Section 3.7.  This Agreement shall be interpreted under the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely with California, without reference to its principles of conflicts of law.
3.12Effect of Change in Company’s Capital Structure.  Appropriate adjustments shall be made in the number, exercise price and class of shares set forth in this Agreement in the event of a stock dividend, stock split, reverse stock split, combination, reclassification or like change in the capital structure of the Company.  If, from time to time, there is any stock dividend, stock split or other change in the character or amount of any of the outstanding stock of the Company, then in such event any and all new, substituted or additional securities to which the Founders and/or the Investors are entitled by reason of their ownership of the stock shall be immediately subject to the rights set forth in this Agreement with the same force and effect as the stock subject to such rights immediately before such event.
3.13Deferred Closing Non-Participation.  Notwithstanding anything else set forth in this Agreement, in the event that any Deferred Closing Purchaser (as defined in the Purchase Agreement) (or one or more affiliated entities or successors or assigns of such Deferred Closing Purchaser) fails to purchase all shares of Series B’ Preferred Stock set forth opposite each such Deferred Closing Purchaser’s name on Exhibit I of the Purchase Agreement (other than because of (i) the occurrence of a Deferred Closing Termination Event (as defined in the Purchase Agreement), (ii) the nonoccurrence of the Deferred Closing Trigger Date (as defined in the Purchase Agreement) or (iii) the Company’s election at its sole discretion to not conduct a Deferred Closing (as defined in the Purchase Agreement)) in a Deferred Closing pursuant to Section 1.2(b) of the Purchase Agreement, such Deferred Closing Purchaser shall lose all rights granted to such Deferred Closing Purchaser under this Agreement, and all such rights shall then immediately be terminated, null and void with respect to such Deferred Closing Purchaser; provided that, for the avoidance of doubt, such Deferred Closing Purchaser shall continue to be obligated by the obligations of this Agreement, notwithstanding the termination of his, her or its rights under this Agreement pursuant to this Section 3.13.
[Signature Page Follows]

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
									
	COMPANY:
			
			
	NEUROPACE, INC.
			
			
	By:	/s/ Michael L. Favet
		Michael L. Favet, Chief Executive
		Officer and President
			
	Address:	455 North Bernardo Avenue
			Mountain View, CA 94043

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
FOUNDERS:
									
	/s/ Frank M. Fischer		/s/ Rebecca L. Kuhn
	Frank M. Fischer		Rebecca L. Kuhn

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
						
	INVESTORS:
		
	Soleus Private Equity Fund I, L.P.
		
	By:	Soleus Private Equity GP I, LLC,
		its General Partner
		
		
	By:	/s/ Steven Musumeci
		
	Name:	Steven Musumeci
		
	Title:	Chief Operating Officer

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
						
	INVESTORS:
		
	Orbimed Private Investments VI, L.P.
		
	By:	OrbiMed Capital GP VI LLC
		Its General Partner
		
		
	By:	OrbiMed Advisors LLC
		Its Managing Member
		
		
	By:	/s/ Carl Gordon
		
	Name:	Carl Gordon
		
	Title:	Member

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Leerink Revelation Healthcare Fund II, L.P.
				
	By:	Leerink Revelation Healthcare Fund II GP, 
	LLC		
				
	Its:	General Partner
				
				
	By:	/s/ Zack Scott
				
	Name:	Zack Scott
				
	Title:	Managing Member

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Covidien Group S.à.r.l
				
	By:	/s/ Salvador Sens
				
	Name:	Salvador Sens
				
	Title:	General Manager

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
			
	INVESTORS:
	
	
	/s/ Andrew Chase
	Andrew Chase

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Granite Point Capital Master Fund, L.P.
				
				
	By:	/s/ R. Scott Bushley
				
	Name:	R. Scott Bushley
				
	Title:	Chief Operating Officer

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Trellis Health Ventures II L.P.
				
				
	By:	/s/ Paul J. Felton
				
	Name:	Paul J. Felton
				
	Title:	Manager, THV Management II LLC

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	The Susan W. and James C. Blair Family L.P.
				
				
	By:	/s/ James C. Blair
				
	Name:	James C. Blair
				
	Title:	General Partner

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	KCK Ltd.
				
				
	By:	/s/ Nael Kassar
				
	Name:	Nael Kassar
				
	Title:	Director

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Greg and Dori Garfield Living Revocable Trust
				
				
	By:	/s/ Greg Garfield
				
	Name:	Greg Garfield
				
	Title:	Trustee

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Lacob Ventures LLC
				
				
	By:	 /s/ Joseph S. Lacob
				
	Name:	Joseph S. Lacob
				
	Title:	Manager

												
	INVESTORS:
				
	LCT18 Investments, LLC
				
				
	By:	 /s/ Joseph S. Lacob
				
	Name:	Joseph S. Lacob
				
	Title:	Manager

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Brockton LLC
				
				
	By:	/s/ Mark A. Doyle
				
	Name:	Mark A. Doyle
				
	Title:	Manager

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Hallador Alternative Assets Fund, LLC
				
				
	By:	/s/ Kevin Leary
				
	Name:	Kevin Leary
				
	Title:	Managing Director of Hallador Management LLC

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Accelmed Partners II LP
				
	By:	Accelmed Partners II GP, L.P.,
		Its General Partner
				
	By:	Accelmed Partners II, LLC, 
		Its General Partner
				
				
	By:	/s/ Uri Geiger
				
	Name:	Uri Geiger
				
	Title:	Managing Partner

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	H. Barton Co-Invest Fund III, LLC
				
				
	By:	/s/ Harris Barton
				
	Name:	Harris Barton
				
	Title:	Managing Member

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Amberbrook VII LP
				
				
	By:	Willowridge VII, LLC, its General Partner
				
	By:	/s/ Jerrold Newman
				
	Name:	Jerrold Newman
				
	Title:	Manager
				
				
				
	Amberbrook VI LLC
				
	By:	Willowridge VI, LLC, its Managing Member
				
				
	By:	/s/ Jerrold Newman
				
	Name:	Jerrold Newman
				
	Title:	Manager

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Favet Living Trust
				
				
	By:	/s/ Michael Favet
				
	Name:	Michael Favet
				
	Title:	Co-Trustee

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
			
	INVESTORS:
	
	
	/s/ Frank M. Fischer
	Frank M. Fischer

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Bradley H. Vale and Gabrielle T. Vale Revocable Trust
				
				
	By:	/s/ Bradley H. Vale
				
	Name:	Brad Vale
				
	Title:	Trustee

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
												
	INVESTORS:
				
	Glynn Investment Co. L.L.C.
				
				
	By:	/s/ John Glynn
				
	Name:	John Glynn
				
	Title:	Manager

The parties have executed this Amended and Restated Investors’ Rights Agreement as of the date first above written.
			
	INVESTORS:
	
	Steven R. and Sandra E. Young
	
	
	/s/ Steven R. Young
	Steven R. Young
	
	/s/ Sandra E. Young
	Sandra E. Young

EXHIBIT A
NON-FOUNDER INVESTORS
			
	Name/Address
	Accelmed Partners II LP
400 Madison Avenue
New York, NY  10017

	Soleus Private Equity Fund I, L.P.
104 Field Point Road, Second Floor
Greenwich, CT 06830

	Leerink Revelation Healthcare Fund II, L.P.
255 California Street, 12th Floor
San Francisco, CA  94111

	Covidien Group S.à.r.l. 
3b, bd Prince Henri
Luxembourg, L-1724 (Luxembourg)
Atten: David Neustaedter

	The Susan W. and James C. Blair Family L.P.
One Palmer Square, Suite 515
Princeton, NJ  08542

	Amberbrook VI LLC
c/o Willowridge Partners
Attn: Luise Hunnewell
25 East 86th Street
New York, NY  10028

	Andrew Chase
281 Georgia Lane
Portola Valley, CA  94028

	GC&H Investments
Attn: Jim Kindler
101 California Street, 5th Floor
San Francisco, CA  94111

	Amberbrook VII LP
c/o Willowridge Partners
Attn:  Luisa Hunnewell
122 East 42nd Street, 37th Floor
New York, NY  10017

			
	Name/Address
	Lacob Ventures LLC
Attn:  Joseph Lacob
234 Atherton Avenue
Atherton, CA  94027

	KCK Ltd. 
Corner House 4th Floor
20 Parliament Street
Hamilton, HM12, Bermuda
Attention: Greg Garfield and Stephen Hoyle 

	OrbiMed Private Investments VI, L.P.
c/o OrbiMed Advisors LLC 
601 Lexington Avenue, 54th Floor
New York, NY 10022
Attention: General Counsel 

	LCT18 Investments, LLC
Attn:  Joseph Lacob
234 Atherton Avenue
Atherton, CA  94027

	David R. Fischell 
71 Riverlawn Drive
Fair Haven, NJ  07704

	Brightside Fund LLC
2803 Caves Road
Owings Mills, MD  21117

	Hallador Alternative Assets Fund, LLC
Attn: Ryan Ritchie
940 Southwood Blvd, Suite 201
Incline Village, NV  89451

	Trellis Health Ventures II L.P.
Attn: Paul Fenton
P.O. Box 2198
Orinda, CA  94563

	Brockton LLC
Attn: Mark Doyle
100 Summerhill Road
Spotswood, NJ  08884

			
	Name/Address
	NextG Partners, LLC
Attn: Jason Green
P.O. Box 6629
Incline Village, NV  89450

	Steven R. and Sandra E. Young
1974 Berkshire Road
Columbus, OH  43221

	Capital Royalty Partners II L.P. 
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Capital Royalty Partners II – Parallel Fund “A” L.P. 
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Capital Royalty Partners II – Parallel Fund “B” (Cayman) L.P. 
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Parallel Investment Opportunities Partners II LP
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Frank M. Fischer
86 Faxon Road
Atherton, CA  94027

	Granite Point Capital Master Fund, L.P.
Attn:  C. David Bushley, COO
109 State Street, 5th Floor
Boston, MA  02109

	Bradley H. Vale and Gabrielle T. Vale Revocable Trust
142 North Milpitas Blvd, #303
Milpitas, CA  95035

			
	Name/Address
	Glynn Investment Co. L.L.C.
Attn:  John Glynn
3000 Sand Hill Road
Building 3, Suite 230
Menlo Park, CA  94025

	Greg and Dori Garfield Living Revocable Trust
104 Harwood Court
Los Gatos, CA  95032

	Michael L. Favet and Patricia L. Favet, as Co-Trustees of the Favet Living Trust
5824 Vitero Way
San Jose, CA  95138

	H. Barton Co-Invest Fund III, LLC
135 Main Street, Suite 850
San Francisco, CA  94105

	KCK Ltd. 
Corner House 4th Floor
20 Parliament Street, Hamilton
HM12, Bermuda
Attn: Greg Garfield and Stephen Hoyle, 
greg.garfield@kckgroup.net and Stephen.hoyle@kckgroup.net 

	OrbiMed Private Investments VI, L.P.
c/o OrbiMed Advisors LLC 
601 Lexington Avenue, 54th Floor
New York, NY 10022
Attention: General Counsel 

	LCT18 Investments, LLC
Attn:  Joseph Lacob
234 Atherton Avenue
Atherton, CA  94027

	GC&H Investments
Attn:  Jim Kindler
101 California Street, 5th Floor
San Francisco, CA  94111

			
	Name/Address
	GC&H Investments, LLC 
Attn:  Jim Kindler
101 California Street, 5th Floor
San Francisco, CA  94111

	David R. Fischell 
71 Riverlawn Drive
Fair Haven, NJ  07704

	Brightside Fund LLC
2803 Caves Road
Owings Mills, MD  21117

	The Susan W. and James C. Blair Family L.P.
Attn:  James Blair
One Palmer Square, Suite 515
Princeton, NJ  08542

	Hallador Alternative Assets Fund, LLC
Attn: Ryan Ritchie
940 Southwood Blvd, Suite 201
Incline Village, NV  89451

	Trellis Health Ventures II L.P.
Attn: Paul Fenton
P.O. Box 2198
Orinda, CA  94563

	Brockton LLC
Attn: Mark Doyle
100 Summerhill Road
Spotswood, NJ  08884

	NextG Partners, LLC
Attn: Jason Green
P.O. Box 6629
Incline Village, NV  89450

	Steven R. and Sandra E. Young
1974 Berkshire Road
Columbus, OH  43221

	Andy Chase
281 Georgia Lane
Portola Valley, CA  94028

			
	Name/Address
	Capital Royalty Partners II L.P. 
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Capital Royalty Partners II – Parallel Fund “A” L.P. 
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Capital Royalty Partners II – Parallel Fund “B” (Cayman) L.P. 
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Parallel Investment Opportunities Partners II LP
Attn:  General Counsel
1000 Main Street, Suite 2500
Houston, TX  77002

	Frank M. Fischer
86 Faxon Road
Atherton, CA  94027

	Lacob Ventures LLC
Attn:  Joseph Lacob
234 Atherton Avenue
Atherton, CA  94027

	Granite Point Capital Master Fund, L.P.
Attn:  C. David Bushley, COO
109 State Street, 5th Floor
Boston, MA  02109

	Amberbrook VII LP
c/o Willowridge Partners
Attn:  Luisa Hunnewell
122 East 42nd Street, 37th Floor
New York, NY  10017

			
	Name/Address
	Amberbrook VI LLC
c/o Willowridge Partners
Attn:  Luisa Hunnewell
122 East 42nd Street, 37th Floor
New York, NY  10017

	Bradley H. Vale and Gabrielle T. Vale Revocable Trust
142 North Milpitas Blvd, #303
Milpitas, CA  95035

	Glynn Investment Co. L.L.C.
Attn:  John Glynn
3000 Sand Hill Road
Building 3, Suite 230
Menlo Park, CA  94025

	Greg and Dori Garfield Living Revocable Trust
104 Harwood Court
Los Gatos, CA  95032

	Michael L. Favet and Patricia L. Favet, as Co-Trustees of the Favet Living Trust
5824 Vitero Way
San Jose, CA  95138

	H. Barton Co-Invest Fund III, LLC
135 Main Street, Suite 850
San Francisco, CA  94105Document

Exhibit 10.2

NEUROPACE, INC.
2009 STOCK PLAN
(as amended through September 20, 2016)

1.    Purposes of the Plan.  The purposes of this 2009 Stock Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees and Consultants of the Company and its Subsidiaries and to promote the success of the Company's business.  Options granted under the Plan may be Incentive Stock Options (as defined under Section 422 of the Code) or Nonstatutory Stock Options, as determined by the Administrator at the time of grant of an Option and subject to the applicable provisions of Section 422 of the Code, as amended, and the regulations promulgated thereunder.  Stock Purchase Rights may also be granted under the Plan.
2.    Definitions.  As used herein, the following definitions shall apply:
(a)    "Administrator" means the Board or its Committee appointed pursuant to Section 4 of the Plan.
(b)    "Affiliate" means an entity other than a Subsidiary in which the Company owns an equity interest or which, together with the Company, is under common control of a third person or entity.
(c)    "Applicable Laws" means the legal requirements relating to the administration of stock option and restricted stock purchase plans under applicable U.S. state corporate laws, U.S. federal and applicable state securities laws, the Code, any Stock Exchange rules or regulations and the applicable laws of any other country or jurisdiction where Options or Stock Purchase Rights are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time.
(d)    "Board" means the Board of Directors of the Company.
(e)    "Code" means the Internal Revenue Code of 1986, as amended.
(f)    "Committee" means one or more committees or subcommittees of the Board appointed by the Board to administer the Plan in accordance with Section 4 below.
(g)    "Common Stock" means the Class A Common Stock of the Company.
(h)    "Company" means NeuroPace, Inc., a Delaware corporation.
(i)    "Consultant" means any person, including an advisor, who is engaged by the Company, or any Parent, Subsidiary or Affiliate to render services, and is compensated for such services, and any director of the Company whether compensated for such services or not.

(j)    "Continuous Service Status" means the absence of any interruption or termination of service as an Employee or Consultant to the Company or a Parent, Subsidiary or Affiliate.  Continuous Service Status shall not be considered interrupted in the case of:  (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator, provided that such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company, its Parents, Subsidiaries or Affiliates or their respective successors.  Unless otherwise determined by the Administrator, a change in status from an Employee to a Consultant or from a Consultant to an Employee will not constitute an interruption of Continuous Service Status.  However, for Incentive Stock Option purposes, termination of Continuous Service Status will occur when the Employee ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company or one of its Subsidiaries.  The Administrator shall determine whether any corporate transaction, such as a sale or spin-off of a division or business unit, or a joint venture, shall be deemed to result in a termination of Continuous Service Status.
(k)    "Corporate Transaction" means a sale of all or substantially all of the Company's assets, or a merger, consolidation or other capital reorganization of the Company with or into another corporation.
(l)    "Director" means a member of the Board.
(m)    "Employee" means any person, including officers and Directors, employed by the Company or any Parent, Subsidiary or Affiliate of the Company.  The payment by the Company of a director's fee to a Director shall not be sufficient to constitute "employment" of such Director by the Company.
(n)    "Exchange Act" means the Securities Exchange Act of 1934, as amended.
(o)    "Fair Market Value" means, as of any date, the fair market value of the Common Stock determined as follows:
(i)    If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq Global Market or the Nasdaq Global Select Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported), as quoted on such system or exchange on the date of determination, or if no trading occurred on the date of determination, on the last market trading day prior to the time of the determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;
(ii)    If the Common Stock is quoted on an established stock exchange or a national market system or regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock for the last market trading day prior to the time of 
2

determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or
(iii)    In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined by the Administrator in compliance with Section 409A of the Code, or in the case of an Incentive Stock Option, in compliance with Section 422 of the Code.
(p)    "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code, as designated in the applicable Option Agreement.
(q)     "Listed Security" means any security of the Company that is listed or approved for listing on a national securities exchange or designated or approved for designation as a national market system security on an interdealer quotation system by the Financial Industry Regulating Authority.
(r)    “Named Executive” means any individual who is a covered employee pursuant to Section 162(m) of the Code.
(s)    "Nonstatutory Stock Option" means an Option not intended to qualify as an Incentive Stock Option, as designated in the applicable Option Agreement.
(t)    "Option" means a stock option granted pursuant to the Plan.
(u)    "Option Agreement" means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of an Option granted under the Plan and includes any documents attached to or incorporated into such Option Agreement, including, but not limited to, a notice of stock option grant and a form of exercise notice.
(v)    "Option Exchange Program" means a program approved by the Administrator whereby outstanding Options are exchanged for (A) Options covering the same or a different number of Shares and with a lower exercise price, (B) Stock Purchase Rights, (C) cash and/or (D) other valuable consideration (as determined by the Board, in its sole discretion); or any other action that is treated as a repricing under generally accepted accounting principles.
(w)    "Optioned Stock" means the Common Stock subject to an Option.
(x)    "Optionee" means an Employee or Consultant who receives an Option.
(y)    "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code, or any successor provision.
(z)    "Participant" means any holder of one or more Options or Stock Purchase Rights, or the Shares issuable or issued upon exercise of such awards, under the Plan.
3

(aa)    "Plan" means this 2009 Stock Plan.
(bb)    "Reporting Person" means an officer, Director, or greater than 10% stockholder of the Company within the meaning of Rule 16a-2 under the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange Act.
(cc)    "Restricted Stock" means Shares of Common Stock acquired pursuant to a grant of a Stock Purchase Right under Section 10 below.
(dd)    "Restricted Stock Purchase Agreement" means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of a Stock Purchase Right granted under the Plan and includes any documents attached to such agreement.
(ee)    "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act, as the same may be amended from time to time, or any successor provision.
(ff)    "Share" means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.
(gg)    "Stock Exchange" means any stock exchange or consolidated stock price reporting system on which prices for the Common Stock are quoted at any given time.
(hh)    "Stock Purchase Right" means the right to purchase Common Stock pursuant to Section 10 below.
(ii)    "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision.
(jj)    "Ten Percent Holder" means a person who owns stock representing more than 10% of the voting power of all classes of stock of the Company or any Parent or Subsidiary.
3.    Stock Subject to the Plan.  Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be sold under the Plan shall not exceed  48,142,818 Shares, which number is equal to the sum of (i) the number of Shares remaining available for issuance pursuant to the grant and exercise of options or issuance of stock purchase rights under the Company’s 1999 Stock Plan (the “Prior Plan”) as of the Effective Date, plus (ii) an additional number of Shares in an amount not to exceed 1,000,000 Shares, consisting of Shares subject to outstanding options granted under the Prior Plan as of the Effective Date that become available from time to time for issuance under the Plan as such options expire or become unexercisable for any reason without having been exercised in full, are surrendered pursuant to an option exchange program or are retained by the Company upon exercise of an option in order to satisfy the exercise price for such option or any withholding taxes due with respect to such exercise, plus (iii) 45,590,999 additional Shares.  Notwithstanding anything to the contrary in this Section 3, and subject to the provisions of Section 13, the maximum aggregate number of 
4

Shares that may be issued pursuant to the exercise of Incentive Stock Options shall be 168,000,000 Shares.  The Shares may be authorized, but unissued, or reacquired Common Stock, including shares repurchased by the Company on the open market or otherwise.  If an Option or Stock Purchase Right expires or becomes unexercisable for any reason without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares that were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan.  In addition, any Shares of Common Stock that are retained by the Company upon exercise of an Option or Stock Purchase Right in order to satisfy the exercise or purchase price for such Option or Stock Purchase Right or any withholding taxes due with respect to such exercise or purchase shall be treated as not issued and shall continue to be available under the Plan.  Shares issued under the Plan and later repurchased by, or forfeited to, the Company pursuant to any repurchase or forfeiture right which the Company may have shall be available for future grant under the Plan; provided that any Shares issued and repurchased under an Incentive Stock Option may not be issued again pursuant to the exercise of an Incentive Stock Option.
4.    Administration of the Plan.
(a)    General.  The Plan shall be administered by the Board or a Committee, or a combination thereof, as determined by the Board.  The Plan may be administered by different administrative bodies with respect to different classes of Participants and, if permitted by the Applicable Laws, the Board may authorize one or more officers to grant Options or Stock Purchase Rights under the Plan.
(b)    Administration with Respect to Reporting Persons.  With respect to Options granted to Reporting Persons and Named Executives, the Plan may (but need not) be administered so as to permit such Options to qualify for the exemption set forth in Rule 16b-3 and to qualify as performance-based compensation under Section 162(m) of the Code.
(c)    Committee Composition.  If a Committee has been appointed pursuant to this Section 4, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.  From time to time the Board may increase the size of any Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies (however caused) and remove all members of a Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws and, in the case of a Committee administering the Plan pursuant to Section 4(b) above, to the extent permitted or required by Rule 16b-3 and Section 162(m) of the Code.
(d)    Powers of the Administrator.  Subject to the provisions of the Plan and in the case of a Committee, the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, including the approval, if required, of any Stock Exchange, the Administrator shall have the authority, in its discretion:
(i)    to determine the Fair Market Value of the Common Stock, in accordance with Section 2(o) of the Plan;
5

(ii)    to select the Consultants and Employees to whom Options and Stock Purchase Rights or any combination thereof may from time to time be granted;
(iii)    to determine whether and to what extent Options and Stock Purchase Rights or any combination thereof are granted;
(iv)    to determine the number of Shares of Common Stock to be covered by each award granted hereunder;
(v)    to approve the forms of agreement for use under the Plan;
(vi)    to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder, which terms and conditions include but are not limited to the exercise or purchase price, the time or times when Options or Stock Purchase Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option, Optioned Stock, Stock Purchase Right or Restricted Stock, based in each case on such factors as the Administrator, in its sole discretion, shall determine;
(vii)    to reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option shall have declined since the date the Option was granted and to make any other amendments or adjustments to any Option that the Administrator determines, in its discretion and under the authority granted to it under the Plan, to be necessary or advisable, provided however that no amendment or adjustment to an Option that would materially and adversely affect the rights of any Optionee shall be made without the prior written consent of the Optionee;
(viii)    to determine whether and under what circumstances an Option may be settled in cash under Section 9(f) instead of Common Stock (including pursuant to an Option Exchange Program);
(ix)    to implement an Option Exchange Program on such terms and conditions as the Administrator in its discretion deems appropriate;
(x)    to determine the terms and restrictions applicable to Stock Purchase Rights and the Restricted Stock purchased by exercising such Stock Purchase Rights;
(xi)    to adjust the vesting of an Option held by an Employee or Consultant as a result of a change in the terms or conditions under which such person is providing services to the Company;
(xii)    to construe and interpret the terms of the Plan and awards granted under the Plan; and
(xiii)    in order to fulfill the purposes of the Plan and without amending the Plan, to modify grants of Options or Stock Purchase Rights to Participants who are foreign 
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nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs.
(e)    Effect of Administrator’s Decision.  All decisions, determinations and interpretations of the Administrator shall be final and binding on all Participants.
5.    Eligibility.
(a)    Recipients of Grants.  Nonstatutory Stock Options and Stock Purchase Rights may be granted to Employees and Consultants; provided, however, that Nonstatutory Stock Options may not be granted to Employees or Consultants who are providing services only to a Parent of the Company, unless the stock underlying such Options is treated as “service recipient stock” under Section 409A of the Code or unless such Options comply with the distribution requirements of Section 409A of the Code.  Incentive Stock Options may be granted only to Employees; provided however that Employees of Affiliates shall not be eligible to receive Incentive Stock Options.  An Employee or Consultant who has been granted an Option or Stock Purchase Right may, if he or she is otherwise eligible, be granted additional Options or Stock Purchase Rights.
(b)    Type of Option.  Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares subject to an Incentive Stock Option shall be determined as of the date of grant of such Option.
(c)    At-Will Relationship.  The Plan shall not confer upon any Participant any right with respect to continuation of an employment or consulting relationship with the Company, nor shall it interfere in any way with such holder’s right or the Company’s right to terminate his or her employment or consulting relationship at any time, with or without case.
6.    Term of Plan.  The Plan shall become effective upon its adoption by the Board (the “Effective Date”).  It shall continue in effect for a term of ten years following the earlier of (a) the date the Plan is adopted by the Board or (b) the date the Plan is approved by the stockholders of the Company, unless sooner terminated under Section 15 of the Plan.
7.    Term of Option.  The term of each Option shall be the term stated in the Option Agreement; provided, however, that the term shall be no more than ten years from the date of grant thereof or such shorter term as may be provided in the Option Agreement.  However, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, is a Ten Percent Holder, the term of such Option shall be five years from the date of grant thereof or such shorter term as may be provided in the Option Agreement.
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8.    Option Exercise Price and Consideration.
(a)    Exercise Price.  The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is determined by the Administrator and set forth in the Option Agreement, but shall be subject to the following:
(i)    In the case of an Incentive Stock Option that is:
(A)    granted to an Employee who at the time of grant is a Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant; or
(B)    granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.
(ii)    In the case of a Nonstatutory Stock Option granted to any Employee or Consultant, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant; provided that notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than 100% of the Fair Market Value per Share if such Option complies with the distribution requirements of Section 409A of the Code.
(iii)    Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a merger or other Corporate Transaction and in a manner consistent with the provisions of Sections 409A and 424(a) of the Code.
(b)    Permissible Consideration.  The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of (1) cash; (2) check; (3) subject to any requirements of Applicable Laws, delivery of Optionee's promissory note with such recourse, interest, security and redemption provisions as the Administrator determines to be appropriate; (4) cancellation of indebtedness; (5) other Shares that (x) in the case of Shares acquired upon exercise of an option, either have been owned by the optionee for more than six months on the date of surrender or such other period as may be required to avoid a charge to the Company’s earnings or were not acquired, directly or indirectly, from the Company, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised; (6) if the Option is a Nonstatutory Stock Option, authorization for the Company to retain from the total number of Shares as to which the Option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of Shares as to which the Option is exercised; provided that the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance of the exercise price not satisfied by such retention in the number of whole Shares to be issued;  (7) if, as of the date of exercise of an Option the Company then is permitting employees to engage in a “same-day sale” cashless brokered exercise program involving one or more brokers, through such a 
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program that complies with the Applicable Laws (including without limitation the requirements of Regulation T and other applicable regulations promulgated by the Federal Reserve Board) and that ensures prompt delivery to the Company of the amount required to pay the exercise price and any applicable withholding taxes; (8) any combination of the foregoing methods of payment; or (9) such other consideration and method of payment for the issuance of Shares as determined by the Administrator and to the extent permitted under the Applicable Laws.  In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company, and the Administrator may refuse to accept a particular form of consideration at the time of any Option exercise if, in its sole discretion, acceptance of such form of consideration is not in the best interests of the Company at such time.
9.    Exercise of Option.
(a)    Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator, consistent with the term of the Plan and reflected in the Option Agreement, including vesting requirements and/or performance criteria with respect to the Company and/or the Optionee.  The Administrator shall have the discretion to determine whether and to what extent the vesting of Options shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, vesting of Options shall be tolled during any such leave (unless otherwise required by Applicable Laws).  In the event of military leave, vesting shall toll during any unpaid portion of such leave, provided that, upon a Participant’s returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to Options to the same extent as would have applied had the Participant continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave.
An Option may not be exercised for a fraction of a Share.
An Option shall be deemed exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised.  Full payment may, as authorized by the Administrator, consist of any consideration and method of payment allowable under Section 8(b) of the Plan.  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued (as evidenced as set forth above), except as provided in Section 12 of the Plan.
Exercise of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.
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(b)    Termination of Employment or Consulting Relationship.  In the event of termination of an Optionee’s Continuous Service Status with the Company, such Optionee may, but only within three months (or such other period of time, not less than 30 days, as is determined by the Administrator, with such determination in the case of an Incentive Stock Option being made at the time of grant of the Option) after the date of such termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement) exercise his or her Option to the extent that the Optionee was entitled to exercise the Option and was vested in the Optioned Stock at the date of such termination.  To the extent that the Optionee was not entitled to exercise the Option or was not vested in the Optioned Stock at the date of such termination, or if the Optionee does not exercise the Option to the extent so entitled within the time specified above, the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option shall revert to the Plan.  Unless otherwise determined by the Administrator, no termination shall be deemed to occur and this Section 9(b) shall not apply if (i) the Optionee is a Consultant who becomes an Employee, or (ii) the Optionee is an Employee who becomes a Consultant. 
(c)    Disability of Optionee.  
(i)    Notwithstanding Section 9(b) above, in the event of termination of an Optionee's Continuous Service Status as a result of his or her total and permanent disability (within the meaning of Section 22(e)(3) of the Code), such Optionee may, but only within twelve months (or such other period of time as is determined by the Administrator, with such determination in the case of an Incentive Stock Option made at the time of grant of the Option) from the date of such termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent entitled to exercise the Option and to the extent the Optionee was vested in the Optioned Stock at the date of such termination.  To the extent that the Optionee was not entitled to exercise the Option or was not vested in the Optioned Stock at the date of termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified above, the Option shall terminate and the Optioned Stock underlying the unexercised portion of the option shall revert to the Plan.
(ii)    In the event of termination of an Optionee’s Continuous Service Status as a result of a disability which does not fall within the meaning of total and permanent disability (as set forth in Section 22(e)(3) of the Code), such Optionee may, but only within twelve months (or such other period of time as is determined by the Administrator, with such determination in the case of an Incentive Stock Option made at the time of grant of the Option) from the date of such termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent entitled to exercise the Option and to the extent the Optionee was vested in the Optioned Stock at the date of such termination.  However, to the extent that such Optionee fails to exercise an Option that is an Incentive Stock Option (within the meaning of Section 422 of the Code) within three months of the date of such termination, the Option will not qualify for Incentive Stock Option treatment under the Code.  To the extent that the Optionee was not entitled to exercise the Option or was not vested in the Optioned Stock at the date of termination, or if the Optionee does not exercise such Option to the extent so entitled within the time period specified above, the Option shall 
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terminate and the Optioned Stock underlying the unexercised portion of the Option shall revert to the Plan.
(d)    Death of Optionee.  In the event of the death of an Optionee during the period of Continuous Service Status since the date of grant of the Option, or within 30 days following termination of Optionee's Continuous Service Status, the Option may be exercised at any time within twelve months following the date of death (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), by such Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent the Optionee was vested in the Optioned Stock as of the date of death or, if earlier, the date of termination of the Optionee's Continuous Service Status.  To the extent that the Optionee was not vested in the Optioned Stock at the date of death or termination, as the case may be, or if the Optionee does not exercise such Option to the extent so entitled within the time specified above, the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option shall revert to the Plan.  
(e)    Extension of Exercise Period.  The Administrator shall have full power and authority to extend the period of time for which an Option is to remain exercisable following termination of an Optionee’s Continuous Status as an Employee or Consultant from the periods set forth in Section 9(b), 9(c) and 9(d) above or in the Option Agreement to such greater time as the Board shall deem appropriate, provided, that in no event shall such Option be exercisable later than the date of expiration of the term of such Option as set forth in the Option Agreement.
(f)    Buyout Provisions.  The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted under the Plan based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made.
(g)    Non-Exempt Employees.  No Option granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Option.  Notwithstanding the foregoing, consistent with the provisions of the Worker Economic Opportunity Act, in the event of the Participant’s death or disability, upon a Corporate Transaction in which the vesting of such Options accelerates, or upon the Participant’s retirement (as such term may be defined in the Participant’s Option Agreement or in another applicable agreement or in accordance with the Company’s then current employment policies and guidelines) any such vested Options may be exercised earlier than six months following the date of grant.  The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay.
10.    Stock Purchase Rights.
(a)    Rights to Purchase.  Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan.  After the Administrator determines that it will offer Stock Purchase Rights 
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under the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid (if any), and the time within which such person must accept such offer, which shall in no event exceed 30 days from the date upon which the Administrator made the determination to grant the Stock Purchase Right.  The purchase price of Shares subject to Stock Purchase Rights shall be as determined by the Administrator.  The offer to purchase Shares subject to Stock Purchase Rights shall be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the Administrator.
(b)    Repurchase Option.  
(i)    General.  Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser's Continuous Service Status with the Company for any reason (including death or disability).  The purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the lower of (A) the Fair Market Value of the Shares on the date of repurchase and (B) the original purchase price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at such rate as the Administrator may determine. 
(c)    Other Provisions.  The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion.  In addition, the provisions of Restricted Stock Purchase Agreements need not be the same with respect to each purchaser.
(d)    Rights as a Stockholder.  Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a stockholder, and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 13 of the Plan.
11.    Taxes.
(a)    As a condition of the grant, vesting or exercise of an Option or Stock Purchase Right granted under the Plan, the Participant (or in the case of the Participant's death, the person exercising the Option or Stock Purchase Right) shall make such arrangements as the Administrator may require for the satisfaction of any applicable federal, state, local or foreign withholding tax obligations that may arise in connection with the grant, vesting or exercise of the Option or Stock Purchase Right and the issuance of Shares.  The Company shall not be required to issue any Shares under the Plan until such obligations are satisfied.  If the Administrator allows the withholding or surrender of Shares to satisfy a Participant’s tax withholding obligations under this Section 11, the Administrator shall not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes.
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(b)    In the case of an Employee and in the absence of any other arrangement, the Employee shall be deemed to have directed the Company to withhold or collect from his or her compensation an amount sufficient to satisfy such tax obligations from the next payroll payment otherwise payable after the date of an exercise of the Option or Stock Purchase Right.  
(c)    This Section 11(c) shall apply only after the date, if any, upon which the Common Stock becomes a Listed Security.  In the case of Participant other than an Employee (or in the case of an Employee where the next payroll payment is not sufficient to satisfy such tax obligations, with respect to any remaining tax obligations), in the absence of any other arrangement and to the extent permitted under the Applicable Laws, the Participant shall be deemed to have elected to have the Company withhold from the Shares to be issued upon exercise of the Option or Stock Purchase Right that number of Shares having a Fair Market Value determined as of the applicable Tax Date (as defined below) equal to the amount required to be withheld.  For purposes of this Section 11, the Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined under the Applicable Laws (the "Tax Date").
(d)    If permitted by the Administrator, in its discretion, a Participant may satisfy his or her tax withholding obligations upon exercise of an Option or Stock Purchase Right by surrendering to the Company Shares that (i) in the case of Shares previously acquired from the Company, have been owned by the Participant for more than six months on the date of surrender (or such other period of time as is required for the Company to avoid adverse accounting consequences), and (ii) have a Fair Market Value determined as of the applicable Tax Date equal to the amount required to be withheld.
(e)    Any election or deemed election by a Participant to have Shares withheld to satisfy tax withholding obligations under Section 11(c) or (d) above shall be irrevocable as to the particular Shares as to which the election is made and shall be subject to the consent or disapproval of the Administrator.  Any election by a Participant under Section 11(d) above must be made on or prior to the applicable Tax Date.
(f)    In the event an election to have Shares withheld is made by a Participant and the Tax Date is deferred under Section 83 of the Code because no election is filed under Section 83(b) of the Code, the Participant shall receive the full number of Shares with respect to which the Option or Stock Purchase Right is exercised but such Participant shall be unconditionally obligated to tender back to the Company the proper number of Shares on the Tax Date.
(g)    Notwithstanding anything to the contrary contained in this Plan, to the extent that the Administrator determines that any Option or Stock Purchase Right granted under the Plan is subject to Code Section 409A and unless otherwise specified in the applicable Option or Restricted Stock Purchase Agreement, the Option or Restricted Stock Purchase Agreement evidencing such Option or Stock Purchase Right shall incorporate the terms and conditions necessary for such Option or Stock Purchase Right to avoid the consequences described in Code Section 409A(a)(1), and to the maximum extent permitted under Applicable Law (and unless otherwise stated in the applicable the Option or Restricted Stock Purchase Agreement), the Plan 
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and the Option or Restricted Stock Purchase Agreements shall be interpreted in a manner that results in their conforming to the requirements of Code Section 409A(a)(2), (3) and (4) and any Department of Treasury or Internal Revenue Service regulations or other interpretive guidance issued under Section 409A.
(h)    To the extent permitted by Applicable Law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Option or Stock Purchase Right may be deferred and may establish programs and procedures for deferral elections to be made by Participants.  Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee or otherwise providing services to the Company.  The Board is authorized to make deferrals of Options and Stock Purchase Rights and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous Service Status, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with Applicable Law.
12.    Non-Transferability of Options and Stock Purchase Rights.  The Administrator may, in its sole discretion, impose such limitations on the transferability of Options and Stock Purchase Rights as the Administrator shall determine.  In the absence of such a determination by the Administrator to the contrary, the following restrictions on the transferability of Options and Stock Purchase Rights shall apply:
(a)    Restrictions on Transfer.  An Option or Stock Purchase Right shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant; provided, however, that the Administrator may, in its sole discretion, permit transfer of the Option or Stock Purchase Right to such extent as permitted by Rule 701 and in a manner consistent with Applicable Laws upon the Participant’s request and may require the Participant to pay, or reimburse, the Company for the Company’s expenses in effecting such transfer.    
(b)    Domestic Relations Orders.  Notwithstanding the foregoing, an Option or Stock Purchase Right may be transferred pursuant to a domestic relations order, and the Administrator may require the Participant to pay, or reimburse, the Company for the Company’s expenses in effecting such transfer; provided, however, that if an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory Stock Option as a result of such transfer.  
(c)    Beneficiary Designation.  Notwithstanding the foregoing, the Participant may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises, designate a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Option or Stock Purchase Right and receive the Common Stock or other consideration resulting from such exercise.  In the absence of such a designation, the executor or administrator of the Participant’s estate shall be entitled to exercise the Option or 
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Stock Purchase Right and receive the Common Stock or other consideration resulting from such exercise.  
13.    Adjustments Upon Changes in Capitalization, Corporate Transactions and Certain Other Transactions.
(a)    Changes in Capitalization.  Subject to any action required under Applicable Law by the stockholders of the Company, the number of Shares of Common Stock covered by each outstanding Option or Stock Purchase Right, and the number of Shares of Common Stock that have been authorized for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or that have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right, as well as the price per Share of Common Stock covered by each such outstanding Option or Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number of issued Shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination, recapitalization or reclassification of the Common Stock or any change in the number of issued Shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration."  Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares of Common Stock subject to an Option or Stock Purchase Right.
(b)    Dissolution or Liquidation.  In the event of the dissolution or liquidation of the Company, each Option and Stock Purchase Right will terminate immediately prior to the consummation of such action, unless otherwise determined by the Administrator.
(c)    Corporate Transaction.  In the event of a Corporate Transaction, each outstanding Option or Stock Purchase Right shall be assumed or an equivalent option or right shall be substituted by such successor corporation or a Parent or Subsidiary of such successor corporation, unless such successor corporation does not agree to assume the outstanding Options or Stock Purchase Rights or to substitute an equivalent options or rights, in which case such Options or Stock Purchase Rights shall terminate upon the consummation of the transaction.
For purposes of this Section 13(c), an Option or a Stock Purchase Right shall be considered assumed, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an Option or Stock Purchase Right would be entitled to receive upon exercise of the award the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to such transaction, the holder of the number of Shares of Common Stock covered by the Option or the Stock Purchase Right at such time (after giving effect to any adjustments in the number of Shares covered by the Option or Stock Purchase Right as provided for in this Section 13); provided however that if such consideration received in the transaction is not solely common 
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stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the Option or Stock Purchase Right to be solely common stock of the successor corporation or its Parent equal to the Fair Market Value of the per Share consideration received by holders of Common Stock in the transaction.
(d)    Certain Distributions.  In the event of any distribution to the Company's stockholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Administrator may, in its discretion, appropriately adjust the price per Share of Common Stock covered by each outstanding Option or Stock Purchase Right to reflect the effect of such distribution.
14.    Time of Granting Options and Stock Purchase Rights.  The date of grant of an Option or Stock Purchase Right shall, for all purposes, be the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other date as is determined by the Administrator, provided that in the case of any Incentive Stock Option, the grant date shall be the later of the date on which the Administrator makes the determination granting such Incentive Stock Option or the date of commencement of the Optionee's employment relationship with the Company.  Notice of the determination shall be given to each Employee or Consultant to whom an Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant.
15.    Amendment and Termination of the Plan.
(a)    Authority to Amend or Terminate.  The Board may at any time amend, alter, suspend or discontinue the Plan, but no amendment, alteration, suspension or discontinuation (other than an adjustment pursuant to Section 13 above) shall be made that would materially and adversely affect the rights of any Optionee or holder of Stock Purchase Rights under any outstanding grant, without his or her consent.  In addition, to the extent necessary and desirable to comply with the Applicable Laws, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required.
(b)    Effect of Amendment or Termination.  No amendment or termination of the Plan shall materially and adversely affect Options or Stock Purchase Rights already granted, unless mutually agreed otherwise between the Optionee or holder of the Stock Purchase Rights and the Administrator, which agreement must be in writing and signed by the Optionee or holder and the Company.
16.    Conditions Upon Issuance of Shares.  Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with the Applicable Laws, with such compliance determined by the Company in consultation with its legal counsel.  
As a condition to the exercise of an Option or Stock Purchase Right, the Company may require the person exercising such Option or Stock Purchase Right to represent and warrant at the 
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time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by law.  Shares issued upon exercise of Options and Stock Purchase Rights granted prior to the date on which the Common Stock becomes a Listed Security shall be subject to a right of first refusal in favor of the Company pursuant to which the Participant will be required to offer Shares to the Company before selling or transferring them to any third party on such terms and subject to such conditions as are reflected in the applicable Option Agreement or Restricted Stock Purchase Agreement.  In addition, Options and Stock Purchase Rights issued prior to the date on which the Common Stock becomes a Listed Security shall require the Participant to agree to a lock-up agreement in connection with public offerings of the Company's stock that applies to all capital stock and rights to purchase capital stock of the Company held by the Participant on such terms and subject to such conditions as are reflected in the applicable Option Agreement or Restricted Stock Purchase Agreement.
17.    Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.
18.    Agreements.  Options and Stock Purchase Rights shall be evidenced by Option Agreements and Restricted Stock Purchase Agreements, respectively, in such form(s) as the Administrator shall from time to time approve.
19.    Stockholder Approval.  If required by the Applicable Laws, continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve months before or after the date the Plan is adopted.  Such stockholder approval shall be obtained in the manner and to the degree required under the Applicable Laws.
20.    Information and Documents to Optionees and Purchasers. Prior to the date, if any, upon which the Common Stock becomes a Listed Security and if required by the Applicable Laws, the Company shall provide financial statements at least annually to each Optionee and to each individual who acquired Shares pursuant to the Plan, during the period such Optionee or purchaser has one or more Options or Stock Purchase Rights outstanding, and in the case of an individual who acquired Shares pursuant to the Plan, during the period such individual owns such Shares.  Except as required by Applicable Law, the Company shall not be required to provide such information if the issuance of Options or Stock Purchase Rights under the Plan is limited to key employees whose duties in connection with the Company assure their access to equivalent information.  In addition, at the time of issuance of any securities under the Plan, the Company shall provide to the Optionee or the purchaser a copy of the Plan and any agreement(s) pursuant to which securities granted under the Plan are issued.
21.    Electronic Delivery.  Any reference herein to a “written” agreement or document shall include any agreement or document delivered electronically or posted on the Company’s intranet.
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22.    Choice of Law.  The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.
23.    Compliance with Exemption Provided by Rule 12h-1(f).  If: (i) the aggregate of the number of Optionees and the number of holders of all other outstanding compensatory employee stock options to purchase shares of Common Stock equals or exceeds 500, and (ii) the assets of the Company at the end of the Company’s most recently completed fiscal year exceed $10 million, then the following restrictions shall apply during any period during which the Company does not have a class of its securities registered under Section 12 of the Exchange Act and is not required to file reports under Section 15(d) of the Exchange Act: (A) the Options and the shares of Common Stock acquired upon exercise of the Options may not be transferred until the Company is no longer relying on the exemption provided by Rule 12h-1(f) promulgated under the Exchange Act (“Rule 12h-1(f)”), except: (1) as permitted by Rule 701(c) promulgated under the Securities Act, (2) to a guardian upon the disability of the Optionee, or (3) to an executor upon the death of the Optionee (collectively, the “Permitted Transferees”); provided, however, the following transfers are permitted: (i) transfers by the Optionee to the Company, and (ii) transfers in connection with a change of control or other acquisition involving the Company, if following such transaction, the Options no longer remain outstanding and the Company is no longer relying on the exemption provided by Rule 12h-1(f); provided further, that any Permitted Transferees may not further transfer the Options; (B) except as otherwise provided in (A) above, the Options and shares of Common Stock acquired upon exercise of the Options are restricted as to any pledge, hypothecation, or other transfer, including any short position, any “put equivalent position” as defined by Rule 16a-1(h) promulgated under the Exchange Act, or any “call equivalent position” as defined by Rule 16a-1(b) promulgated under the Exchange Act by the Optionee prior to exercise of an Option until the Company is no longer relying on the exemption provided by Rule 12h-1(f); and (C) at any time that the Company is relying on the exemption provided by Rule 12h-1(f), the Company shall deliver to Optionees (whether by physical or electronic delivery or written notice of the availability of the information on an internet site) the information required by Rule 701(e)(3), (4), and (5) promulgated under the Securities Act every six months, including financial statements that are not more than 180 days old; provided, however, that the Company may condition the delivery of such information upon the Optionee’s agreement to maintain its confidentiality.  
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