Document:

Form of Warrant - 2009 Convertible Bridge Loan

 EXHIBIT 4.3 

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 
  

 

							
	 Warrant No. «Warrant_Number»
	 		 		  	 Number of Shares: «Warrant_1»

	 Date of Issuance: August 12, 2009
	 		 		  	 (subject to adjustment)

COMPLETE GENOMICS, INC. 

Common Stock Purchase Warrant 

No. «Warrant_Number» 

Complete Genomics, Inc. (the “Company”), for value received, hereby certifies that
«PURCHASER_NAME», or its registered assigns (the “Registered Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at any time after the date
hereof and on or before the Expiration Date (as defined in Section 5 below), up to «Warrant_2» («Warrant_1») shares of Common Stock of the Company (“Common Stock”), at the Purchase Price (as defined
below). The shares purchasable upon exercise of this Common Stock Purchase Warrant (this “Warrant”), are hereinafter referred to as the “Warrant Stock.” The purchase price per share, as adjusted from time to time
pursuant to the provisions of this Warrant (the “Purchase Price”), shall be the fair market value of the Company’s Common Stock, as determined by the Board of Directors in its reasonable discretion as soon as practicable
following the Company’s Series D Preferred Stock financing, upon receipt of an independent third party valuation obtained in connection with the Company’s compliance with Section 409A of the Internal Revenue Code of 1986, as amended;
provided, that, in no event, shall be the Purchase Price be lower than $0.05 per share. 
 1.
Exercise. 
 (a) Manner of Exercise. This Warrant may be exercised by the Registered
Holder, in whole or in part, by surrendering this Warrant, with the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered Holder’s duly authorized attorney, at the
principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full of the Purchase Price payable in respect of the number of shares of Warrant Stock purchased upon such exercise. The
Purchase Price may be paid by cash, check, wire transfer or by the surrender of promissory notes or other instruments representing indebtedness of the Company to the Registered Holder. 

(b) Effective Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 1(a) above. At such 

 
time, the person or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such exercise as provided in Section 1(d) below shall be deemed to have become
the holder or holders of record of the Warrant Stock represented by such certificates. 
 (c) Net Issue
Exercise. 
 (i) In lieu of exercising this Warrant in the manner provided above in Section 1(a),
the Registered Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such election on the
purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or such Registered Holder’s duly authorized attorney, in which event the Company shall issue to such Registered Holder a number of shares of
Warrant Stock computed using the following formula: 
  

											
		 	 X =
	 	 Y (A - B)
	  		  		  	
		 		 	A	  		  		  	

  

					
			
	 Where
	    	 X =
	  	 The number of shares of Warrant Stock to be issued to the Registered Holder.

			
		    	 Y =
	  	 The number of shares of Warrant Stock purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being
canceled (at the date of such calculation).

			
		    	 A =
	  	 The fair market value of one share of Warrant Stock (at the date of such calculation).

			
		    	 B =
	  	 The Purchase Price (as adjusted to the date of such calculation).

(ii) For purposes of this Section 1(c), the fair market value of Warrant Stock on the date of calculation shall
mean with respect to each share of Warrant Stock: 
 (A) if the exercise is in connection with an initial
public offering of the Common Stock, and if the Company’s Registration Statement relating to such public offering has been declared effective by the Securities and Exchange Commission, then the fair market value shall be the initial “Price
to Public” per share specified in the final prospectus with respect to the offering; or 
 (B) if
subparagraph (A) is not applicable, the fair market value of Warrant Stock shall be determined in good faith by the Company’s Board of Directors. 

(d) Exchange Right. 

(i) In lieu of exercising this Warrant pursuant to Section 1(a) or net exercising it pursuant to Section 1(c),
prior to the closing of a Corporate Transaction (as defined below), other than a Corporate Transaction involving the sale, conveyance or disposal of all or substantially all of the Company’s property or business, by written notice to the
acquiring entity (the “Acquiring Person”) at least five (5) days before the date of closing of such Corporate Transaction, the Registered Holder may assign, in whole or in part, this Warrant to the Acquiring

  

 2. 

 
Person and receive in exchange from the Acquiring Person immediately prior to such closing, without the payment by the Registered Holder of any additional consideration, an amount and type of
consideration equal to the amount and type of consideration that would have been payable by the Acquiring Person in the Corporate Transaction with respect to that number of shares of Warrant Stock that would have been issuable had the portion of the
Warrant that is so assigned pursuant to this Section 1(d) not been assigned but instead been net exercised pursuant to Section 1(c). 

(ii) The type of consideration paid by the Acquiring Person for the portion of this Warrant that could be net exercised
into one share of Warrant Stock pursuant to Section 1(c) shall be the same type of consideration, whether stock, securities or other property, paid for one share of Warrant Stock in the Corporate Transaction, or if more than one type of
consideration is paid for one share of Warrant Stock in the Corporate Transaction, the same types and on the same relative basis as is paid for one share of Warrant Stock in the Corporate Transaction. 

(e) Notwithstanding the provisions of Section 1 if the Registered Holder has not exercised this Warrant prior to the
closing of a Corporate Transaction or an Initial Public Offering, this Warrant shall automatically be deemed to be exercised in full in the manner set forth in Section 1(c), without any further action on behalf of the Registered Holder,
immediately prior to such closing. 
 (f) Delivery to Registered Holder. As soon as practicable
after the exercise of this Warrant in whole or in part, and in any event within ten (10) business days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as such Registered
Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct: 
 (i) a
certificate or certificates for the number of shares of Warrant Stock to which such Registered Holder shall be entitled, and 

(ii) in case such exercise is in part only, a new warrant or warrants (dated as of the date hereof) of like tenor,
calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of such
shares purchased by the Registered Holder upon such exercise as provided in Section 1(a), 1(c) or 1(d) above. 

2. Adjustments. 

(a) Stock Splits and Dividends. If outstanding shares of Common Stock shall be subdivided into a greater
number of shares or a dividend in Common Stock shall be paid in respect of Common Stock, the Purchase Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such
subdivision or immediately after the record date of such dividend be proportionately reduced. If outstanding shares of Common Stock shall be combined into a smaller number of shares, the Purchase Price in effect immediately prior to such combination
shall, simultaneously with the 
  

 3. 

 
effectiveness of such combination, be proportionately increased. When any adjustment is required to be made in the Purchase Price, the number of shares of Warrant Stock purchasable upon the
exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase Price in
effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment. 

(b) Reclassification, Etc. In case there occurs any reclassification or change of the outstanding
securities of the Company or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date
hereof, then and in each such case the Registered Holder, upon the exercise hereof at any time after the consummation of such reclassification, change, or reorganization shall be entitled to receive, in lieu of the stock or other securities and
property receivable upon the exercise hereof prior to such consummation, the stock or other securities or property to which such Registered Holder would have been entitled upon such consummation if such Registered Holder had exercised this Warrant
immediately prior thereto, all subject to further adjustment pursuant to the provisions of this Section 2. 

(c) Adjustment Certificate. When any adjustment is required to be made in the Warrant Stock or the Purchase
Price pursuant to this Section 2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Purchase Price after such adjustment and
(iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment. 

3. Transfers. 

(a) Unregistered Security. Each holder of this Warrant acknowledges that this Warrant and the Warrant Stock
have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon
its exercise in the absence of (i) an effective registration statement under the Securities Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal
or state securities law then in effect, or (ii) an opinion of counsel, satisfactory to the Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Stock issued upon the exercise of
this Warrant shall bear a legend substantially to the foregoing effect. 
 3.2 Transferability.
Subject to the provisions of Sections 3(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the
principal office of the Company, provided, however, that the transferee agrees in writing to be subject to the terms hereof to the same extent as if such transferee were the original Registered Holder, provided further, that the
transferee agrees in writing to be subject to the terms of (i) Section 1.14 of that certain Third Amended and Restated Investor Rights Agreement, dated as of the date hereof, by and among the Company and certain of its stockholders, as
such may be amended from time to time (the “Rights Agreement”), and (ii) that certain Third Amended and Restated 

 

 4. 

 
Voting Agreement, dated as of the date hereof, by and among the Company and certain of its stockholders, as such may be amended from time to time. 

(a) Warrant Register. The Company will maintain a register containing the names and addresses of the
Registered Holders of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all purposes; provided, however, that
if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary. Any Registered Holder may change such
Registered Holder’s address as shown on the warrant register by written notice to the Company requesting such change. 

4. Representations and Warranties of the Registered Holder. The Registered Holder hereby represents and
warrants to the Company that: 
 4.1 Authorization. The Registered Holder has full power and
authority to enter into this Warrant. The Warrant, when executed and delivered by the Registered Holder, will constitute a valid and legally binding obligation of the Registered Holder, enforceable in accordance with its terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of
specific performance, injunctive relief, or other equitable remedies. 
 4.2 Purchase Entirely for Own
Account. This Warrant is issued to the Registered Holder in reliance upon the Registered Holder’s representation to the Company, which by the Registered Holder’s acceptance of this Warrant, the Registered Holder hereby confirms,
that the Warrant to be acquired by the Registered Holder and the Warrant Stock (collectively, the “Securities”) will be acquired for investment for the Registered Holder’s own account, not as a nominee or agent, and not with a
view to the resale or distribution of any part thereof, and that the Registered Holder has no present intention of selling, granting any participation in, or otherwise distributing the same. By accepting this Warrant, the Registered Holder further
represents that the Registered Holder does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities.
The Registered Holder has not been formed for the specific purpose of acquiring the Securities. 
 4.3
Disclosure of Information. The Registered Holder has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant
and the Securities. The Registered Holder has had an opportunity to discuss the Company’s business, management, financial affairs and the terms and conditions of the offering of the Securities with the Company’s management and has had an
opportunity to review the Company’s facilities. The Registered Holder understands that such discussions, as well as any written information delivered by the Company to the Registered Holder, were intended to describe the aspects of the
Company’s business which it believes to be material. 
  

 5. 

 4.4 Restricted Securities. The Registered Holder understands
that the Securities have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the
investment intent and the accuracy of the Registered Holder’s representations as expressed herein. The Registered Holder understands that the Securities are “restricted securities” under applicable U.S. federal and state securities
laws and that, pursuant to these laws, the Registered Holder must hold the Securities indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and
qualification requirements is available. The Registered Holder acknowledges that the Company has no obligation to register or qualify the Securities for resale. The Registered Holder further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which are outside of the
Registered Holder’s control, and which the Company is under no obligation and may not be able to satisfy. 

4.5 No Public Market. The Registered Holder understands that no public market now exists for any of the
securities issued by the Company, and that the Company has made no assurances that a public market will ever exist for the Securities. 

4.6 Accredited or Sophisticated Investor. The Registered Holder is an accredited investor as defined in
Rule 501(a) of Regulation D promulgated under the Securities Act. 
 4.7 “Lock-Up
Agreement”. The Registered Holder acknowledges and agrees that it is subject to the “lock-up agreement” set forth in Section 1.14 of the Rights Agreement. 

5. Termination. This Warrant (and the right to purchase securities upon exercise hereof) shall terminate
upon the earliest to occur of the following (the “Expiration Date”): (a) August 12, 2016, (b) the sale, conveyance or disposal of all or substantially all of the Company’s property or business or the
Company’s merger with or into or consolidation with any other corporation (other than a wholly-owned subsidiary of the Company) or 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 (a “Corporate Transaction”), provided that a merger effected exclusively for the purpose of changing the domicile of the Company or an equity financing in which the Company is the surviving
corporation shall not be deemed a Corporate Transaction, or (c) the closing of a firm commitment underwritten public offering pursuant to a registration statement under the Securities Act (an “Initial Public Offering”).

 6. Notices of Certain Transactions. In case: 

(a) the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time
deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, or 
  

 6. 

 (b) of any capital reorganization of the Company, any reclassification of
the capital stock of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of the
assets of the Company, including, without limitation, a Corporate Transaction, or 
 (c) of the voluntary or
involuntary dissolution, liquidation or winding-up of the Company, or 
 (d) an Initial Public Offering.

 then, and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice
specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, (ii) the effective date on
which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or
such other stock or securities at the time deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion) are to be determined or (iii) the anticipated
effective date of the consummation of such Initial Public Offering. Such notice shall be mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice. 

7. Reservation of Stock. The Company will at all times reserve and keep available, solely for the issuance
and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property, as from time to time shall be issuable upon the exercise of this Warrant. If at any time prior to the Expiration Date the number
of authorized but unissued shares of Warrant Stock shall not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued
shares of Warrant Stock to such number of shares as shall be sufficient for such purposes. The Company covenants and agrees that all Warrant Stock that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance in
accordance with the terms hereof, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. 

8. Exchange of Warrants. Upon the surrender by the Registered Holder of any Warrant or Warrants, properly
endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 3 hereof, issue and deliver to or upon the order of such Registered Holder, at the Company’s expense, a new Warrant or
Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of
shares of Common Stock called for on the face or faces of the Warrant or Warrants so surrendered. 
 9.
Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, 

 

 7. 

 
theft or destruction) upon delivery of an indemnity agreement in a form reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will issue, in lieu thereof, a new Warrant of like tenor. 
 10. No Rights as Stockholder.
Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any rights solely by virtue hereof as a stockholder of the Company. 

11. No Fractional Shares. No fractional shares of Common Stock will be issued in connection with any
exercise hereunder. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of Common Stock on the date of exercise, as
determined in good faith by the Company’s Board of Directors. 
 12. Amendment or Waiver. Any
term of this Warrant may be amended or waived only by an instrument in writing signed by the party against which enforcement of the amendment or waiver is sought. 

13. Headings. The headings in this Warrant are for purposes of reference only and shall not limit or
otherwise affect the meaning of any provision of this Warrant. 
 14. Governing Law. This Warrant
shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law. 

15. Survival of Representations. Unless otherwise set forth in this Warrant, the warranties,
representations and covenants of the Company and the Registered Holder contained in or made pursuant to this Warrant shall survive the execution and delivery of this Warrant. 

16. Transfer; Successors and Assigns. The terms and conditions of this Warrant shall inure to the benefit
of and be binding upon the respective successors and assigns of the parties. Nothing in this Warrant, 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 Warrant, except as expressly provided in this Warrant. 

17. Counterparts. This Warrant may be executed in two or more counterparts, each of which shall be deemed
an original and all of which together shall constitute one instrument. 
 18. Attorney’s
Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any of this Warrant, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary
disbursements in addition to any other relief to which such party may be entitled. 
 19.
Severability. If one or more provisions of this Warrant are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable
and enforceable replacement for such provision, then (a) such provision shall be excluded from this Warrant, (b) the balance of 

 

 8. 

 
this Warrant shall be interpreted as if such provision were so excluded and (c) the balance of this Warrant shall be enforceable in accordance with its terms. 

20. Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party
under this Warrant, upon any breach or default of any other party under this Warrant, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver,
permit, consent or approval of any kind or character on the part of any party of any breach or default under this Warrant, or any waiver on the part of any party of any provisions or conditions of this Warrant, must be in writing and shall be
effective only to the extent specifically set forth in such writing. All remedies, either under this Warrant or by law or otherwise afforded to any party, shall be cumulative and not alternative. 

21. Notices. Any notice required or permitted by this Warrant shall be in writing and shall be mailed by
registered mail, certified mail (return receipt requested) or by internationally recognized express courier (e.g., Federal Express), postage prepaid, or sent by fax or electronic mail or otherwise delivered by hand or by messenger, addressed to the
party to be notified at such party’s address as set forth below, or as subsequently modified by written notice. Each such notice shall be treated as effective or having been given on the earliest to occur of the following: the date of personal
delivery or delivery by messenger; one (1) business day after transmission by fax or electronic mail, with confirmation of transmission and with copy by first class mail, postage paid; one (1) business day after deposit with an
internationally recognized express courier for United States deliveries, or three (3) business days after such deposit for deliveries outside the United States; or three (3) business days after deposit in a regularly maintained receptacle
for the deposit of the United States mail be registered or certified mail (return receipt requested) for United States deliveries. 

If to the Registered Holder, to: 

[                   
         ] 

[                   
         ] 

[                   
         ] 
 Facsimile No.:
[                    ] 

Attention:
[                    ] 

with a copy to (which copy shall not constitute notice): 

Gunderson Dettmer Stough Villeneuve 

Franklin & Hachigian, LLP 

1200 Seaport Boulevard 

Redwood City, CA 94063 

Facsimile No.: (650) 321-2800 

Attention: Keith J. Scherer 

 

 9. 

 If to the Company, to: 

Complete Genomics, Inc. 

2071 Stierlin Court 

Mountain View, California 94043 

Facsimile No.: (650) 964-2108 

Attention: Clifford A. Reid 

with a copy to (which copy shall not constitute notice): 

Latham & Watkins LLP 

140 Scott Drive 

Menlo Park, CA 94025 

Facsimile No.: (650) 463-2600 

Attention: Alan C. Mendelson and Greg Chin 

22. Entire Agreement. This Warrant, and the documents referred to herein constitute the entire agreement
between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled. 

[Signature page follows] 
  

 10. 

 IN WITNESS WHEREOF, the Company has caused this Common Stock Purchase
Warrant to be issued as of the date first written above. 
  

					
	 COMPANY:

	
	 COMPLETE GENOMICS, INC.

		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

 

							
	 Accepted and Agreed:

	
	 REGISTERED HOLDER:

	
	
[                             
                       ]

		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

[SIGNATURE PAGE TO COMMON STOCK PURCHASE
WARRANT] 

 EXHIBIT A 

PURCHASE/EXERCISE FORM 
  

			
	 To: Complete Genomics, Inc.
	  	 Dated:

The undersigned, pursuant to the provisions set forth in the attached Warrant No. «Warrant_Number», hereby
irrevocably elects to (a) purchase
                                     shares of the Common
Stock covered by such Warrant and herewith makes payment of $            , representing the full purchase price for such shares at the price per share provided for in such Warrant,
or (b) exercise such Warrant for
                                     shares purchasable under
the Warrant pursuant to the Net Issue Exercise provisions of Section 1(c) of the Warrant. 
 The
undersigned acknowledges that it has reviewed the representations and warranties contained in Section 4 of the Warrant and by its signature below hereby makes such representations and warranties to the Company as of the date hereof. 

 

					
	 Signature:
	 	  

		
	 Name (print):
	 	  

		
	 Title:
	 	  

		
	 Company:
	 	  

 EXHIBIT B 

ASSIGNMENT FORM 

FOR VALUE RECEIVED, «PURCHASER_NAME» hereby sells, assigns and transfers
all of the rights of the undersigned under the attached Warrant with respect to the number of shares of Common Stock covered thereby set forth below, unto: 
  

					
	 Name of Assignee
	  	 Address/Fax Number
	  	 No. of Shares

 

									
	 Dated:                     
	 		 	 Signature:
	  	  
	  	
					
		 		 	 Witness:Form of Warrant - 2010 convertible bridge loan

 EXHIBIT 4.4 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED. THIS WARRANT AND THE UNDERLYING SECURITIES MAY NOT BE SOLD OR TRANSFERRED WITHOUT (I) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (II) AN OPINION OF COUNSEL FOR THE HOLDER, SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE ACT OR (III) RECEIPT OF A NO ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION. COPIES OF THE AGREEMENT COVERING THE ACQUISITION OF THIS WARRANT AND RESTRICTING ITS TRANSFER MAY BE OBTAINED AT NO COST
BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS WARRANT TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY. 

Void after [Five Years from Date of Issuance] 

COMPLETE GENOMICS, INC. 

STOCK PURCHASE WARRANT 

NO. 2010-«Warrant_No» 

THIS CERTIFIES THAT, for value received, «LENDER» or its registered assigns
(hereinafter called the “Holder”) is entitled to purchase from COMPLETE GENOMICS, INC., a Delaware corporation, with its principal place of business at 2071 Stierlin Court,
Mountain View, CA 94043 (the “Company”), at any time after the date hereof and ending at 5:00 p.m. Pacific Standard Time on the Expiration Date, as such term is defined in Section 1 hereof, up to that number of shares of the
Company’s Common Stock, par value $0.001 per share (“Common Stock”) as specified in Section 2 below. 

This Warrant (the “Warrant”) is being issued pursuant to the terms of that certain Bridge Loan
Agreement, dated as of April 12, 2010 by and among the Holder, the Company and certain other investors set forth therein (the “Loan Agreement”). This Warrant may be exercised in whole or in part, at the option of the Holder. Unless
otherwise defined herein, defined terms in this Warrant shall have the meanings ascribed to them in the Loan Agreement. 

1. Definitions. As used herein, the following terms shall have the following respective meanings. 

(a) Subject to Section 5.1, “Expiration Date” shall mean the period ending on [Five Years from Date of
Issuance]. 
 (b) “Warrant Price” shall mean $1.50 per share, the current per share fair market
value of the Common Stock, subject to adjustments pursuant to Section 5 below. 
 (c) “Warrant
Shares” shall mean the shares of Common Stock, subject to adjustments pursuant to the terms herein, including but not limited to adjustment pursuant to Section 5 below. 

 2. Warrant Coverage. This Warrant shall be exercisable for the number
of shares of Common Stock determined as follows: the quotient of numerator (A) the product of (x) 0.05, (y) the applicable Loan Amount (as defined in the Loan Agreement) loaned by the original Holder of this Warrant at the Closing (as defined in the
Loan Agreement) at which this Warrant was issued, and (z) the number of months as measured by the number of complete months and the percentage of a complete month comprised by any less-than-complete month, between the date of this Warrant and the
date of the closing of the Next Financing, and denominator (B) the Warrant Price; provided, that, (z) shall not exceed five (5). 

3. Method of Exercise; Payment; Issuance of New Warrant. Subject to Section 1 hereof, the purchase right
represented by this Warrant may be exercised by the Holder, in whole or in part, by: 
 3.1. the surrender of
this Warrant (with an executed notice of exercise in the form attached hereto as Attachment A and an duly executed Investment Representation Statement in the form attached hereto as Attachment B) by delivery to the Company at its
address set forth above (or such other address as it may designate by notice in writing to the Holder); and 

3.2. the payment to the Company, by check, wire transfer, forgiveness of indebtedness, or any combination of the
foregoing, of an amount equal to the then applicable Warrant Price per share multiplied by the number of Warrant Shares then being purchased. 

If this Warrant should be exercised in part only, the Company shall, upon surrender of this Warrant, execute and deliver
a new Warrant evidencing the rights of the Holder thereof to purchase the balance of the Warrant Shares purchasable hereunder. Upon receipt by the Company of this Warrant and such notice of exercise, together with, if applicable, the aggregate
Warrant Price, at such office, or by the stock transfer agent or warrant agent of the Company at its office, the Holder shall be deemed to be the holder of record of the applicable Warrant Shares, notwithstanding that the stock transfer books of the
Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Holder. The Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the
issue or delivery of the Warrant Shares. 
 3.3. Net Exercise. 

(a) In addition to and without limiting the rights of the Holder under the terms of this Warrant, the Holder may elect
to convert this Warrant or any portion thereof (the “Conversion Right”) into Warrant Shares, the aggregate value of which Warrant Shares shall be equal to the value of this Warrant or the portion thereof being converted. The
Conversion Right may be exercised by the Holder by surrender of this Warrant at the principal office of the Company together with notice of the Holder’s intention to exercise the Conversion Right, in which event the Company shall issue to the
Holder a number of Warrant Shares computed using the following formula: 
  

							
		 	X=	 	Y(A-B)	  	
		 		 	A	  	

  

 2 

 Where: 

X = The number of Warrant Shares to be issued to the Holder upon exercise of the Conversion Right.

 Y = The number of Warrant Shares issuable upon exercise of this Warrant (or such lesser
number as are being exercised). 
 A = The fair market value of one Warrant Share, as determined
pursuant to Section 3.3(b) hereof, as of the time the Conversion Right is exercised pursuant to this Section 3. 

B = Warrant Price for one Warrant Share under this Warrant (as adjusted to the date of such
calculations). 
 Notwithstanding the foregoing, this Warrant shall be deemed to have automatically converted into Warrant
Shares pursuant to this Section 3.3(a) upon the Expiration Date if not previously exercised or converted before such date. 

(b) Fair Market Value. For purposes of Section 3.3, “fair market value of one Warrant Share”
shall mean, as of any date: 
 (i) the last closing price per share of the Company's Common Stock on the
principal national securities exchange on which the Common Stock is listed or admitted to trading; 
 (ii) the
average of the bid and asked price per share as reported in the “pink sheets” published by the National Quotation Bureau, Inc. (the “pink sheets”) if the Company’s Common Stock is not listed or traded on any exchange; or

 (iii) if such quotations are not available, the fair market value per share of the Warrant Shares on the
date such notice was received by the Company, as determined in good faith by the Board of Directors of the Company. 

4. Stock Fully Paid; Reservation of Warrant Shares. All shares of stock which may be issued upon the exercise of
the rights represented by this Warrant will, upon issuance, be fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issue thereof. During the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized and reserved for the purpose of issue upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of shares of its stock to provide for the exercise of the rights
represented by this Warrant. In the event that there is an insufficient number of Warrant Shares reserved for issuance pursuant to the exercise of this Warrant, the Company will take appropriate action to authorize an increase in its capital stock
to allow for such issuance or similar issuance acceptable to the Holder. 
 5. Adjustment of Warrant Price
and Number of Warrant Shares. The number and kind of Warrant Shares purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

  

 3 

 5.1. Corporate Reorganization. Without limiting any of the other
provisions hereof, if any Corporate Reorganization shall be effected, then the Company shall use its best efforts to ensure that lawful and adequate provision shall be made whereby the Holder shall thereafter continue to have the right to purchase
and receive upon the basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares issuable upon exercise of this Warrant, shares of stock in the surviving or acquiring entity (“Acquirer”), as the case
may be, such that the aggregate value of the Holder’s warrants to purchase such number of shares, where the value of each new warrant to purchase one share in the Acquirer is determined in accordance with the Black-Scholes Option Pricing
formula set forth in Appendix A hereto, is equivalent to the aggregate value of this Warrant, where the value of this Warrant to purchase one share in the Company is determined in accordance with the Black-Scholes Option Pricing formula set
forth Appendix B hereto. Furthermore, the new warrants to purchase shares in the Acquirer referred to herein shall have the same expiration date as this Warrant, and shall have an exercise price that is calculated in accordance with
Appendix A hereto. For the avoidance of doubt, if the surviving or acquiring entity, as the case may be, is a member of a consolidated group for financial reporting purposes, the “Acquirer” shall be deemed to be the parent of such
consolidated group for purposes of this Section 5.1 and Appendix A hereto. Moreover, appropriate provision shall be made with respect to the rights and interests of the Holder to the end that the provisions hereof (including, without
limitation, provision for adjustment of the Warrant Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any shares of stock thereafter deliverable upon the exercise thereof. In any such case, the
successor corporation resulting from such consolidation or merger, or the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or entity shall assume by written instrument, reasonably deemed by the Board of
Directors of the Company and the Investor Majority to be satisfactory in form and substance, the obligation to deliver to the holder of the Warrants such shares of stock, as, in accordance with the foregoing provisions, such holder may be entitled
to purchase, and the other obligations under the Warrants. The provisions of this Section 5.1 shall similarly apply to successive Corporate Reorganizations. 

If the Company, in spite of using its best efforts, is unable to cause the Warrants to continue in full force and effect
until the Expiration Date in connection with any Corporate Reorganization, then the Company shall pay the Holder an amount per Warrant to purchase one share in the Company that is calculated in accordance with the Black-Scholes Option Pricing
formula set forth in Appendix B hereto. Such payment shall be made in cash in the event that the Corporate Reorganization results in the stockholders of the Company receiving cash from the Acquirer at the closing of the transaction, and shall
be made in shares of the Company (with the value of each share in the Company is determined according to Appendix B hereto) in the event that the Corporate Reorganization results in the stockholders of the Company receiving shares in the
Acquirer or other entity at the closing of the transaction (with the Holder then participating in the Corporate Reorganization and receiving for such Company shares the consideration per share specified in such transaction). In the event that the
stockholders of the Company receive both cash and shares at the closing of the transaction, such payment to the Holder shall be also be made in both cash and shares in the same proportion as the consideration received by the stockholders. For the
avoidance of doubt, any term or provision of this Section 5.1 may be revised or waived in connection with a Corporate Reorganization with the written agreement of the Company and an Investor Majority. 

 

 4 

 5.2. Subdivision or Combination of Warrant Shares. If the Company at
any time while this Warrant remains outstanding and unexpired shall subdivide or combine its stock, the Warrant Price shall be proportionately decreased in the case of a subdivision or increased in the case of a combination. 

5.3. Stock Dividends. If the Company at any time while this Warrant is outstanding and unexpired shall pay a
dividend with respect to stock payable in, or make any other distribution with respect to stock (except any distribution specifically provided for in the foregoing Sections 5.1 and 5.2) of, stock, then the Warrant Price shall be adjusted, from and
after the date of determination of stockholders entitled to receive such dividend or distribution, to that price determined by multiplying the Warrant Price in effect immediately prior to such date of determination by a fraction (i) the numerator of
which shall be the total number of shares of stock outstanding immediately prior to such dividend or distribution, and (ii) the denominator of which shall be the total number of shares of stock outstanding immediately after such dividend or
distribution. 
 5.4. Adjustment of Number of Warrant Shares. Upon each adjustment in the Warrant Price,
the number of shares of stock purchasable hereunder shall be adjusted, to the nearest whole share, to the product obtained by multiplying the number of Warrant Shares purchasable immediately prior to such adjustment in the Warrant Price by a
fraction, the numerator of which shall be the Warrant Price immediately prior to such adjustment and the denominator of which shall be the Warrant Price immediately thereafter. 

6. Fractional Warrant Shares. No fractional Warrant Shares will be issued in connection with any exercise
hereunder, but in lieu of such fractional shares the Company shall make a cash payment therefor upon the basis of the Warrant Price then in effect. 

7. Compliance with Securities Act; Non-transferability of Warrant; Disposition of Shares of Stock. 

7.1. Compliance with Securities Act. The Holder, by acceptance hereof, agrees that this Warrant and the Warrant
Shares are being acquired for investment and that he, she or it will not offer, sell or otherwise dispose of this Warrant or any Warrant Shares except under circumstances which will not result in a violation of the Securities Act of 1933, as amended
(the “Act”). Upon exercise of this Warrant, the Holder hereof shall confirm in writing, in a form attached hereto as Attachment B, that the Warrant Shares so purchased are being acquired for investment and not with a view
toward distribution or resale. In addition, the Holder shall provide such additional information regarding such Holder’s financial and investment background, as the Company may reasonably request, as is relevant for purposes of determining the
Holder’s suitability with respect to a purchase of the Warrant Shares. All Warrant Shares (unless registered under the Act) shall be stamped or imprinted with a legend in substantially the following form (in addition to any legend required
under applicable state securities laws): 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED. THIS SECURITY MAY NOT BE SOLD OR TRANSFERRED WITHOUT (I) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (II) AN OPINION OF COUNSEL FOR 

 

 5 

 
THE HOLDER, SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR (III) RECEIPT OF A NO ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION. COPIES OF THE
WARRANT AGREEMENT COVERING THE ACQUISITION OF THIS SECURITY AND RESTRICTING ITS TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS SECURITY TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICES
OF THE COMPANY. 
 7.2. Transferability of Warrant. This Warrant may not be transferred or assigned in
whole or in part without (i) an effective registration statement related thereto, (ii) an opinion of counsel for the Holder, satisfactory to the Company, that such registration is not required under the Act or (iii) receipt of a no action letter
from the Securities and Exchange Commission (together, “Securities Law Compliance Guarantees”); provided, however, that the Warrant may be transferred in whole or in part without Securities Law Compliance Guarantees
upon any of the following provided that the transferee agrees in writing to be subject to the terms hereof to the same extent as if he/she were an original Holder hereunder: 

(a) A transfer of the Warrant by a Holder who is a natural person during such Holder’s lifetime or on death by will
or intestacy to such Holder’s immediate family or to any custodian or trustee for the account of such Holder or such Holder’s immediate family. “Immediate family” as used herein shall mean spouse, lineal descendant,
father, mother, brother, or sister of the Holder; 
 (b) A transfer of the Warrant to the Company; 

(c) A transfer of the Warrant to a parent, subsidiary or affiliate of a Holder; or 

(d) A transfer of the Warrant by a Holder which is a limited or general partnership to any of its partners or former
partners (with a, b and c, a “Permitted Transfer”). 
 7.3. Disposition of
Warrant Shares. Upon exercise of the Warrant Shares, the Holder will be entitled to any registration rights granted to all holders of the New Preferred Stock issued in the Next Financing (or, if there is no Next Financing, the registration
rights held by the holders of the Series D Preferred Stock). With respect to any offer, sale or other disposition of any Warrant Shares prior to registration of such shares, the Holder and each subsequent Holder of this Warrant agrees to give
written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of such Holder’s counsel, if requested by the Company, to the effect that such offer, sale or other disposition may be effected
without registration or qualification (under the Act as then in effect or any federal or state law then in effect) of such Warrant Shares and indicating whether or not under the Act certificates for such shares to be sold or otherwise disposed of
require any restrictive legend as to applicable restrictions on transferability in order to ensure compliance with the Act; provided, however, that no such opinion of counsel or no-action letter shall be necessary for a Permitted Transfer if the
transferee agrees in writing to be subject to the terms hereof to the same extent as if he/she were an original Holder hereunder. 
  

 6 

 8. Rights of Stockholders. No Holder of this Warrant shall be
entitled to vote or receive dividends or be deemed the holder of stock or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon
the Holder of this Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until this Warrant has been exercised and the Warrant Shares shall have become deliverable, as provided herein. 

9. Governing Law. The terms and conditions of this Warrant shall be governed by and construed in accordance with
Delaware law, without giving effect to conflict of law principles. 
 10. Miscellaneous. The headings in
this Warrant are for purposes of convenience and reference only, and shall not be deemed to constitute a part hereof. All notices and other communications shall be delivered by hand or mailed by first-class registered or certified mail, postage
prepaid, to the respective addresses provided in the Loan Agreement, or to such other address as the Company or Holder may designate to the other parties hereto. 

11. Loan Agreement. This Warrant is a Warrant referred to in the Loan Agreement and is entitled to all the
benefits provided therein. 
 12. Loss, Theft or Destruction of Warrant. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft or destruction of this Warrant and of indemnity or security reasonably satisfactory to it, the Company will make and deliver an affidavit of lost warrant which shall carry the same rights
carried by this Warrant, stating that such affidavit of lost warrant is issued in replacement of this Warrant, making reference to the original date of issuance of this Warrant (and any successors hereto) and dated as of such cancellation, in lieu
of this Warrant. 
 13. Amendment and Waiver. Any provision of this Warrant may be waived or amended
(either generally or in a particular instance, either retroactively or prospectively, and either for a specified period of time or indefinitely), pursuant to Section 5.1 of the Loan Agreement. 

 

 7 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed
by its officers, thereunto duly authorized this              day of     , 2010. 

 

			
	 COMPLETE GENOMICS, INC.

		
	 By:
	 	  

	 Name:
	 	 Clifford A. Reid

	 Title:
	 	 President and Chief Executive Officer

SIGNATURE PAGE TO 

STOCK PURCHASE WARRANT 

 ATTACHMENT A TO WARRANT 

NOTICE OF EXERCISE 

TO: Complete Genomics, Inc. 

1. The undersigned hereby elects to purchase
                     shares of Common Stock of COMPLETE GENOMICS, INC. pursuant to the
terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full, together with all applicable transfer taxes, if any. 

1. The undersigned hereby elects to convert the attached Warrant into Warrant Shares in the manner specified in
Section 3.3 of the Warrant. This conversion is exercised with respect to                      of the Shares covered by the Warrant.

 [Strike paragraph above that does not apply.] 

2. Please issue a certificate or certificates representing said shares of stock in the name of the undersigned or in such
other name as is specified below: 
  

									
		 	 Name:
	 	  
	  		  	
		 	 Address:
	 	  
	  		  	
		 		 	  
	  		  	
		 		 	  
	  		  	

 3. The undersigned represents that the aforesaid shares of stock are being
acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares. In support
thereof, the undersigned has executed an Investment Representation Statement attached hereto as Attachment C. 
  

									
		 		 	  
	  	
		 		 	 WARRANTHOLDER
	  	
					
		 		 	 By:
	 		  	
		 		 	 Title:
	 		  	
		 		 	 Date:
	 	  
	  	

 ATTACHMENT B TO WARRANT 

INVESTMENT REPRESENTATION STATEMENT 
  

					
	 PURCHASER
	 	 :
	  	
	 COMPANY
	 	 :
	  	 Complete Genomics, Inc.

	 SECURITY
	 	 :
	  	
	 AMOUNT
	 	 :
	  	
	 DATE
	 	 :
	  	

 In connection with the purchase of the above-listed securities and underlying
stock (the “Securities”), the undersigned represents to the Company the following: 
 (a) I/We
am purchasing these Securities for my/our own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution” thereof for purposes of the Securities Act of 1933, as amended (the
“Act”). 
 (b) I/We understand that the Securities have not been registered under the Act in
reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of my/our investment intent as expressed herein. In this connection, I/we understand that, in the view of the Securities and
Exchange Commission (the “SEC”), the statutory basis for such exemption may be unavailable if my/our representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period
specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future. 

(c) I/We further understand that the Securities must be held indefinitely unless subsequently registered under the Act or
unless an exemption from registration is otherwise available. Moreover, I/we understand that the Company is under no obligation to register the Securities. In addition, I/we understand that the certificate evidencing the Securities will be imprinted
with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel for the Company. 

(d) I/We am/are aware of the provisions of Rule 144, promulgated under the Act, which, in substance, permits limited
public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof (or from an affiliate of such issuer), in a non-public offering subject to the satisfaction of certain conditions. 

(e) I/We further understand that at the time I/we wish to sell the Securities there may be no public market upon which to
make such a sale. 
  

	
	  

	 WARRANTHOLDER

	
	  

	 (signature)

	
	  

	 (title)

 APPENDIX A 

Black Scholes Option Pricing formula to be used when calculating the value of each new warrant to purchase one share in the Acquirer
shall be: 

CAcq
 =
SAcqe
-l(TAcq
-t
Acq
)N(d1
) –
KAcqe
-r(TAcq
-t
Acq
)N(d2
), where 

CAcq
 = value of each warrant to purchase one share in the Acquirer 

SAcq
 = price of Acquirer’s stock as determined by reference to the average of the closing prices on the securities
exchange or Nasdaq Global Market over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization described in Section 5.1 if the Acquirer’s stock is then traded on such exchange or system, or the average of
the closing bid or sale prices (whichever is applicable) in the over-the-counter market over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization if the Acquirer’s stock is then actively traded in the
over-the-counter market, or the then most recently completed financing if the Acquirer’s stock is not then traded on a securities exchange or system or in the over-the-counter market. 

TAcq
 = expiration date of new warrants to purchase shares in the Acquirer =
TCorp

tAcq
 = date of issue of new warrants to purchase shares in the Acquirer 

TAcq
-tAcq =
 time until warrant expiration, expressed in years 

s =
volatility = annualized standard deviation of daily log-returns (using a 262-day annualization factor) of the Acquirer’s stock price on the securities exchange or Nasdaq Global Market over a 20-day trading period, determined by the Warrant
Holders, that is within the 100-day trading period ending on the trading day immediately after the public announcement of the Corporate Reorganization described in Section 5.1 if the Acquirer’s stock is then traded on such exchange or system,
or the annualized standard deviation of daily-log returns (using a 262-day annualization factor) of the closing bid or sale prices (whichever is applicable) in the over-the-counter market over a 20-day trading period, determined by the Warrant
Holders, that is within the 100-day trading period ending on the trading day immediately after the public announcement of the Corporate Reorganization if the Acquirer’s stock is then actively traded in the over-the-counter market, or 0.6 (or
60%) if the Acquirer’s stock is not then traded on a securities exchange or system or in the over-the-counter market. 

N = cumulative normal distribution function 

d1
 =
(ln(SAcq/K
Acq) + (r-l+s
2/2)(T
Acq-t
Acq)) ÷
(sÖ(TAcq
-tAcq))
 
 ln = natural logarithm 

l = dividend rate of the Acquirer for the most recent 12-month period at the
time of closing of the Corporate Reorganization. 

KAcq
 = strike price of new warrants to purchase shares in the Acquirer =
KCorp *
(SAcq /
SCorp)

 r = annual yield, as reported by Bloomberg at time
tAcq, of the United States Treasury security measuring the
nearest time TAcq 

d2
 =
d1- s
Ö(TAcq
-tAcq)
 

 APPENDIX B 

Black Scholes Option Pricing formula to be used when calculating the value of each Warrant to purchase one share in the Company shall
be: 

CCorp
 =
SCorpe
-l(TCorp
-t
Corp
)N(d1
) –
KCorpe
-r(TCorp
-t
Corp
)N(d2
), where 

CCorp
 = value of each Warrant to purchase one share in the Company 

SCorp
 = price of Company stock as determined by reference to the average of the closing prices on the securities exchange or
Nasdaq Global Market over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization described in Section 5.1 if the Company’s stock is then traded on such exchange or system, or the average of the closing
bid or sale prices (whichever is applicable) in the over-the-counter market over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization if the Company’s stock is then actively traded in the
over-the-counter market, or the then most recently completed financing if the Company’s stock is not then traded on a securities exchange or system or in the over-the-counter market. 

TCorp
 = expiration date of Warrants to purchase shares in the Company 

tCorp
 = date of public announcement of transaction 

TCorp
-tCorp =
 time until Warrant expiration, expressed in years 

s = volatility = the annualized standard deviation of daily log-returns (using a 262-day annualization factor) of the
Company’s stock price on the securities exchange or Nasdaq Global Market over a 20-day trading period, determined by the Warrant Holders, that is within the 100-day trading period ending on the trading day immediately after the public
announcement of the Corporate Reorganization described in Section 5.1 if the Company’s stock is then traded on such exchange or system, or the annualized standard deviation of daily-log returns (using a 262-day annualization factor) of the
closing bid or sale prices (whichever is applicable) in the over-the-counter market over a 20-day trading period, determined by the Warrant Holder, that is within the 100-day trading period ending on the trading day immediately after the public
announcement of the Corporate Reorganization if the Company’s stock is then actively traded in the over-the-counter market, or 0.6 (or 60%) if the Company’s stock is not then traded on a securities exchange or system or in the
over-the-counter market. 
 N = cumulative normal distribution function 

d1
 =
(ln(SCorp/K
Corp) + (r-l+s
2/2)(T
Corp-t
Corp)) ÷
(sÖ(TCorp
-tCorp))
 
 ln = natural logarithm 

l = dividend rate of the Company for the most recent 12-month period at the
time of closing of the Corporate Reorganization. 

KCorp
 = strike price of warrant 

r = annual yield, as reported by Bloomberg at time
tCorp, of the United States Treasury security measuring the
nearest time TCorp 

d2
 = d1-
sÖ(TCorp
-tCorp)

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