Document:

Standard form of Non-Incentive Stock Option Agreement

 EXHIBIT 10.14 
 Grant ID XXXXX 
 ENTEROMEDICS INC. 
 NON-INCENTIVE STOCK OPTION AGREEMENT 
 THIS AGREEMENT, made as of this
     day of                     ,         , by and between
EnteroMedics Inc., a Delaware corporation (the “Company”), and
                                 (“Optionee”). 
 WHEREAS, the Company, pursuant to the Amended and Restated EnteroMedics Inc. 2003 Stock Incentive Plan (the “Plan”), wishes to grant this stock
option to Optionee; 
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto
hereby agree as follows: 
 1. Grant of Option. The Company hereby grants to Optionee the right and option (“the Option”) to
purchase all or any part of an aggregate of              shares (the “Shares”) of the common stock, par value $0.01 per share (the “Common Stock”), of the Company
at the price of $         per Share on the terms and conditions set forth herein. The Option is not intended to qualify as an incentive stock option within the meaning of Section 422A of the
Internal Revenue Code of 1986, as amended (the “Code”). 
 2. Duration and Exerciseability. The Option may not be exercised
by Optionee except as set forth herein, and the Option shall in all events terminate ten years from the date hereof. Subject to the other terms and conditions set forth herein, the Option shall vest and may be exercised by Optionee as follows:

  

			
	 On or after each of
 the following dates
	  	 Shares as to which the
 Option is exercisable

	 XXXXX, XXXX
	  	  

	 Each subsequent month for 35 months
	  	  

	 36th
subsequent month
	  	  

 During the lifetime of Optionee, the Option shall be exercisable only by Optionee. The Option shall not be
assignable or transferable by Optionee, other than by will or the laws of descent and distribution. The vesting of the Option is subject to acceleration under the circumstances described in Section 4. 
 3. Effect of Termination of Relationship with the Company. 
 (a) In the event that Optionee’s relationship with the Company or its subsidiaries shall terminate, for any reason other than Optionee’s gross and willful misconduct or Optionee’s death or disability,
Optionee shall have the right to exercise the Option at any time within five years after such termination to the extent of the full number of Shares Optionee was entitled to purchase under the Option on the date of termination, subject to the
condition that the Option shall not be exercisable after the expiration of its term. 
 (b) In the event that Optionee’s relationship
with the Company or its subsidiaries shall terminate by reason of Optionee’s gross and willful misconduct during the course of his/her relationship with the Company (as reasonably determined by the Company), the Option shall terminate as of the
date of the misconduct and shall not be exercisable thereafter. 

 (c) If Optionee shall die during its relationship with the Company or its subsidiaries, or within three
months after termination of such relationship with the Company for any reason other than gross and willful misconduct, or if Optionee’s relationship with the Company or its subsidiaries is terminated because the Optionee has become disabled
within the meaning of Section 22(e)(3) of the Code, and Optionee shall not have fully exercised the Option, the Option may be exercised at any time within twelve months after the date of Optionee’s death or termination of Optionee’s
relationship because of disability by the legal representative or, if applicable, guardian of Optionee or by any person to whom the Option is transferred by will or the applicable laws of descent and distribution to the extent of the full number of
Shares Optionee was entitled to purchase under the Option on the date of death (or termination of Optionee’s relationship with the Company, if earlier) or termination of Optionee’s relationship because of disability and subject to the
condition that the Option shall not be exercisable after the expiration of its term. 
 4. Change in Control. 
 (a) In the event that a “Change in Control” (as hereinafter defined) occurs, (i) all outstanding Options shall be subject to the agreement
pursuant to which such Change in Control is consummated and (ii) the vesting schedule of the Options held by Optionee shall accelerate such that on the date the Change in Control is completed, 50% of any then-unvested shares subject to the
Options held by Optionee shall immediately vest, irrespective of which of the provisions described in clauses (i) through (v) below are set forth in the agreement pursuant to which such Change in Control is consummated (except in the case
of clause (iv), in which case 100% of the Options would become vested). Such agreement shall provide for one or more of the following: 
 (i) The continuation of such outstanding Options by the Company (if the Company is the surviving corporation). 
 (ii) The assumption of such outstanding Options by the surviving corporation or its parent in a manner that complies with Section 424(a) of the Code (whether or not such Options are ISOs). 
 (iii) The substitution by the surviving corporation or its parent of new options for such outstanding Options in a manner that complies
with Section 424(a) of the Code (whether or not such Options are ISOs). 
 (iv) Full exercisability of such outstanding
Options and full vesting of the Shares subject to such Options, followed by the cancellation of such Options. The full exercisability of such Options and full vesting of the Shares subject to such Options may be contingent on the closing of such
Change in Control. The Optionees shall be able to exercise such Options during a period of not less than five full business days preceding the closing date of such Change in Control, unless (A) a shorter period is required to permit a timely
closing of such Change in Control and (B) such shorter period still offers the Optionee a reasonable opportunity to exercise such Options. Any exercise of such Options during such period may be contingent on the closing of such Change in
Control. 
  

 2 

 (v) The cancellation of such outstanding Options and a payment to the Optionee equal to
the excess of (A) the Fair Market Value (as defined in the Plan) of the Shares subject to such Options (whether or not such Options are then exercisable or such Shares are then vested) as of the closing date of such Change in Control over
(B) their aggregate exercise price. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in
installments and may be deferred until the date or dates when such Options would have become exercisable or such Shares would have vested. Such payment may be subject to vesting based on the Optionee’s continuing service to the Company or its
affiliates, provided that the vesting schedule shall not be less favorable to the Optionee than the schedule under which such Options would have become exercisable or such Shares would have vested. If the aggregate exercise price of the Shares
subject to such Options exceeds the Fair Market Value of such Shares by greater than ten percent (10%) of the Fair Market Value of such Shares, then such Options may be cancelled without making a payment to the Optionee. For purposes of this
Section 4(a)(v), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security. 
 (b) A “Change in Control” of the Company shall be deemed to have occurred if: 
 (i)
Any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) who did not own shares of the capital stock of the Company on the date of grant of the
Option shall, together with his, her or its “Affiliates” and “Associates” (as such terms are defined in Rule 12b-2 promulgated under the Exchange Act), become the “Beneficial Owner” (as such term is defined in Rule
13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities (any such person being hereinafter referred to as
an “Acquiring Person”); 
 (ii) The “Continuing Directors” (as hereinafter defined) shall cease to
constitute a majority of the Company’s Board of Directors; 
 (iii) There should occur (A) any consolidation or
merger involving the Company and the Company shall not be the continuing or surviving corporation or the shares of the Company’s capital stock shall be converted into cash, securities or other property; provided, however, that
this subclause (A) shall not apply to a merger or consolidation in which (i) the Company is the surviving corporation and (ii) the stockholders of the Company immediately prior to the transaction have the same proportionate ownership
of the capital stock of the surviving corporation immediately after the transaction; (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the
Company; or (C) any liquidation or dissolution of the Company; or 
 (iv) The majority of the Continuing Directors
determine, in their sole and absolute discretion, that there has been a Change in Control. 
 (c) “Continuing Director” shall mean
any person who is a member of the Board of Directors of the Company, while such person is a member of the Board of Directors, who is not an Acquiring Person, an Affiliate or Associate of an Acquiring Person or a representative of an Acquiring Person
or of any such Affiliate or Associate and who (i) was a member of the Company’s Board of Directors on the date of grant of the Option or (ii) subsequently became a member of the Board of Directors, upon the nomination or
recommendation, or with the approval of, a majority of the Continuing Directors. 
  

 3 

 5. Manner of Exercise. 
 (a) The Option may only be exercised by Optionee or other proper party within the option period by delivering written notice of exercise to the Company at
its principal executive office. The notice shall state the number of Shares as to which the Option is being exercised and shall be accompanied by payment in full of the option price for all of the Shares designated in the notice. 
 (b) Optionee may, at the Company’s election, pay the option price in cash, by check (bank check, certified check or personal check) or by any other
means approved by the Committee (as such term is defined in the Plan) in its discretion, or in accordance with the terms set forth in the Plan. 
 (c) The exercise of the Option is contingent upon receipt from Optionee (or other proper person exercising the Option) of a representation that, at the time of such exercise, it is Optionee’s intention to acquire the Shares being
purchased for investment and not with a view to the distribution or sale thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”); provided, however, that the receipt of such representation
shall not be required upon exercise of the Option if, at the time of such exercise, the issuance of the Shares subject to the Option shall have been properly registered under the Securities Act and all applicable state securities laws. Such
representation shall be in writing and in such form as the Company may reasonably request. The certificate representing the Shares so issued for investment shall be imprinted with an appropriate legend setting forth all applicable restrictions on
their transferability. 
 6. Right of First Refusal. 
 (a) Right of First Refusal. In the event that the Optionee proposes to sell, pledge or otherwise transfer to a third party any Shares acquired under this Agreement, or any interest in such Shares, the
Company shall have the Right of First Refusal with respect to all (and not less than all) of such Shares. If the Optionee desires to transfer Shares acquired under this Agreement, the Optionee shall give a written transfer notice (a “Transfer
Notice”) to the Company describing fully the proposed transfer, including the number of Shares proposed to be transferred, the proposed transfer price, the name and address of the proposed transferee (the “Transferee”) and proof
satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal or state securities laws. The Transfer Notice shall be signed both by the Optionee and by the proposed Transferee and must constitute a binding
commitment of both parties to the transfer of the Shares. The Company shall have the right to purchase all, and not less than all, of the Shares on the terms of the proposal described in the Transfer Notice (subject, however, to any change in such
terms permitted under Subsection (b) below) by delivery of a notice of exercise of the Right of First Refusal within 30 days after the date when the Transfer Notice was received by the Company. 
 (b) Transfer of Shares. If the Company fails to exercise its Right of First Refusal within 30 days after the date when it received the
Transfer Notice, the Optionee may, not later than 90 days following receipt of the Transfer Notice by the Company, conclude a transfer of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice,
provided that any such sale is made in compliance with applicable federal and state securities laws and not in violation of any other 

  

 4 

 
contractual restrictions to which the Optionee is bound. Any proposed transfer on terms and conditions different from those described in the Transfer Notice,
as well as any subsequent proposed transfer by the Optionee, shall again be subject to the Right of First Refusal and shall require compliance with the procedure described in Subsection (a) above. If the Company exercises its Right of First
Refusal, the parties shall consummate the sale of the Shares on the terms set forth in the Transfer Notice within 60 days after the date when the Company received the Transfer Notice (or within such longer period as may have been specified in
the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the Shares was to be made in a form other than cash or cash equivalents paid at the time of transfer, the Company shall have the option of
paying for the Shares with cash or cash equivalents equal to the present value of the consideration described in the Transfer Notice. 
 (c)
Additional or Exchanged Securities and Property. In the event of a merger or consolidation of the Company with or into another entity, any other corporate reorganization, a stock split, the declaration of a stock dividend, the declaration of
an extraordinary dividend payable in a form other than stock, a spin-off, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities, any securities or other property (including
cash or cash equivalents) that are by reason of such transaction exchanged for, or distributed with respect to, any Shares subject to this Section 6 shall immediately be subject to the Right of First Refusal. Appropriate adjustments to reflect
the exchange or distribution of such securities or property shall be made to the number and/or class of the Shares subject to this Section 6. 
 (d) Termination of Right of First Refusal. Any other provision of this Section 6 notwithstanding, in the event that the Common Stock is readily tradable on an established securities market when the Optionee desires to transfer
Shares, the Company shall have no Right of First Refusal, and the Optionee shall have no obligation to comply with the procedures prescribed by Subsections (a) and (b) above. 
 (e) Permitted Transfers. This Section 6 shall not apply to (i) a transfer by beneficiary designation, will or intestate succession or
(ii) a transfer to one or more members of the Optionee’s Immediate Family or to a trust established by the Optionee for the benefit of the Optionee and/or one or more members of the Optionee’s Immediate Family, provided in either case
that the Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement. If the Optionee transfers any Shares acquired under this Agreement, either under this Subsection (e) or after the Company
has failed to exercise the Right of First Refusal, then this Agreement shall apply to the Transferee to the same extent as to the Optionee. For purposes of this Agreement, “Immediate Family” shall include the ancestors, descendants,
siblings and spouse of the Optionee. 
 (f) Termination of Rights as Stockholder. If the Company makes available, at the time and
place and in the amount and form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section 6, then after such time the person from whom such Shares are to be purchased shall no longer have any
rights as a holder of such Shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to have been purchased in accordance with the applicable provisions hereof, whether or
not the certificate(s) therefor have been delivered as required by this Agreement. 
 (g) Assignment of Right of First Refusal.
The Board of Directors may freely assign the Company’s Right of First Refusal, in whole or in part. Any person who accepts an assignment of the Right of First Refusal from the Company shall assume all of the Company’s rights and
obligations under this Section 6. 
  

 5 

 7. Market Stand-Off. In connection with any underwritten public offering by the Company of its
equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, the Optionee or a Transferee shall not directly or indirectly sell, make any short sale of, loan,
hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with
respect to, any Shares acquired under this Agreement without the prior written consent of the Company or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for such period of time following the date of the final
prospectus for the offering as may be requested by the Company or such underwriters. In no event, however, shall such period exceed 180 days. The Market Stand-Off shall in any event terminate two years after the date of the Company’s initial
public offering. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of
consideration, any new, substituted or additional securities which are by reason of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become convertible, shall immediately be
subject to the Market Stand-Off. In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares acquired under this Agreement until the end of the applicable stand-off period. The
Company’s underwriters shall be beneficiaries of the agreement set forth in this Section 7. This Section 7 shall not apply to Shares registered in the public offering under the Securities Act, and the Optionee or a Transferee shall be
subject to this Section 7 only if the directors and officers of the Company are subject to similar arrangements. 
 8.
Adjustments. In the event that there is any change in the Common Stock or corporate structure of the Company as a result of any dividend or other distribution (whether in the form of cash, Common Stock, other securities or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase
Common Stock or other securities of the Company or other similar corporate transaction or event, and all or any portion of the Option shall then be unexercised and not yet expired, then appropriate adjustments in the outstanding Option shall be made
as determined by the Committee in accordance with the provisions of Section 4(c) of the Plan in order to prevent dilution or enlargement of Option rights. 
 9. Miscellaneous. 
 (a) The Option is issued pursuant to the Plan and is subject to its terms. In the
event any of the terms of this Option conflict or are inconsistent in any respect with terms of the Plan, the Plan terms shall control. Optionee hereby acknowledges receipt of a copy of the Plan. The Plan is also available for inspection during
business hours at the principal office of the Company. 
 (b) This Agreement shall not confer on Optionee any right with respect to
continuance of employment by or continuance of the relationship with the Company or any of its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such employment at any time. Optionee shall have none of the
rights of a stockholder with respect to the Shares until such Shares shall have been issued to him or her upon exercise of the Option. 
 (c)
The Company shall at all times during the term of the Option reserve and keep available such number of Shares as will be sufficient to satisfy the requirements thereof. The exercise of all or any part of the Option shall only be effective at, and
may be deferred until, such time as the sale of the Shares pursuant to such exercise will not violate any federal or state securities laws, it being understood that the Company shall have no obligation to register the issuance or sale of the Shares
for such purpose. 
 [The remainder of this page is intentionally left blank; signature page follows] 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year
first above written. 
  

			
	 ENTEROMEDICS, INC.

		
	 By
	 	  

	 Name:
	 	Mark B. Knudson, Ph.D.
	 Title:
	 	President and CEO
	
	  

		 	 Optionee

  

 7Standard form of Restricted Stock Agreement

 EXHIBIT 10.15 
 ENTEROMEDICS INC. 
 STOCK RESTRICTION AGREEMENT 
 This Stock Restriction Agreement (the “Agreement”) is dated as of [Date], by and between EnteroMedics Inc., a Delaware corporation (the
“Company”), and [Name] (the “Holder”). 
 BACKGROUND 
 1. The Holder is a founder of the Company, and the Holder’s continued participation is considered by the Company to be important for the
Company’s growth. 
 2. Effective as of [Date], the Company issued to the Holder and the Holder acquired from the Company [Number]
(            ) shares of the Company’s Common Stock, $.01 par value (the “Shares”). 
 AGREEMENT 
 In consideration of the mutual covenants and representations
herein set forth, the Company and the Holder agree as follows: 
  

	 	1.	Repurchase Option. 

 (a) The
Shares (the “Repurchase Shares”) shall be subject to the right and option of the Company to repurchase such Repurchase Shares (the “Repurchase Option”) as set forth in this Section 1. In the event (i) the
Holder shall voluntarily terminate Holder’s position as a director or executive officer of the Company or otherwise no longer is performing services at the direction of the Company’s Board of Directors, the Company’s Chief Executive
Officer, or their successors and assigns, whether as (y) an employee or director or (z) as an advisor or consultant; provided, that if such services are provided as an advisor or consultant, the Holder has entered into a written consulting
agreement with the Company in such form as authorized by the Board of Directors or Chief Executive Officer of the Company, or (ii) if then employed by the Company, the Company shall terminate the Holder’s employment for any reason (each a
“Termination”), the Repurchase Option shall come into effect. 
 (b) Following a Termination, the Company shall have the
right, as provided in subsection (c) hereof, to purchase from the Holder or his personal representative, as the case may be, the Repurchase Shares at a price of $.01 per share (the “Option Price”); provided,
however, that such Repurchase Option shall lapse as to [1/48] of the Repurchase Shares as of the last day of each month following [Date], beginning with [Date]; provided further, that in no event shall any fractional share vest, but
instead, all share calculations made for purposes of the vesting provisions set forth in this Section 1(b) shall be rounded up or down to the nearest whole share, and such rounded shares shall vest pursuant to the terms of this
Section 1(b). Notwithstanding the foregoing, the 

  

 1 

 
Holder shall have no right, title or beneficial interest in the Repurchase Shares prior to [Date], the date of Holder’s acquisition of the Repurchase
Shares. Notwithstanding the foregoing, all Repurchase Shares shall automatically vest (and the Repurchase Option shall automatically terminate with respect to all such Repurchase Shares) upon the occurrence of all of the following events:
(i) consummation of the merger, consolidation or sale of shares of capital stock or all or substantially all of the assets or of the Company whereby the shareholders of the Company immediately prior to such transaction own less than fifty
percent (50%) of the acquiring or surviving company, as the case may be (a “Change in Control”) and (ii) the Holder is subject to an Involuntary Termination (as defined below) within twelve (12) months after such a
Change in Control. For purposes of this Section 1(b), “Involuntary Termination” shall mean (x) the involuntary discharge of the Holder by the Company for reasons other than for Cause (as defined below) or (y) the voluntary
resignation of the Holder following (A) a change in the Holder’s position with the Company that materially reduces his or her level of authority or responsibility, (B) a reduction in the Purchaser’s base salary by more than ten
percent (10%) or (C) receipt of notice that the Holder’s principal workplace will be relocated to a location other than the greater Minneapolis-St. Paul metropolitan area. 
 (c) Within 60 days following a Termination, the Company shall notify the Holder by written notice delivered or mailed as provided in
Section 8 hereof, as to whether the Company wishes to purchase the Repurchase Shares pursuant to exercise of the Repurchase Option. If the Company elects to purchase the Repurchase Shares hereunder, it shall set a date for the closing of the
transaction at a place and time specified by the Company or, at the Company’s option, such closing may be consummated by mail; all required documents shall be delivered in accordance with the provisions of Section 8 hereof. At such
closing, the Company (or its assignee) shall tender payment for the Repurchase Shares, and the certificates representing the Repurchase Shares so purchased shall be canceled. The Option Price shall be payable in cash. 
 (d) Subject to the terms hereof, the Holder shall have all the rights of a shareholder with respect to the Repurchase Shares, including
without limitation, the right to vote the Repurchase Shares and to receive any cash dividends declared thereon. If, from time to time during the term of the Repurchase Option, there is (i) any stock dividend, stock split or other change in the
Repurchase Shares, or (ii) any merger or sale of all or substantially all of the assets or other acquisition of the Company, any and all new, substituted or additional securities to which the Holder is entitled by reason of the Holder’s
ownership of the Repurchase Shares shall be deemed Repurchase Shares. 
 For purposes of this Section 1,
“Cause” shall mean the following actions by the Holder: (i) fraud, misrepresentation, theft or embezzlement of Company assets; (ii) material intentional violations of law or Company policies; or (iii) the repeated
failure of Holder to perform his duties as an executive officer of the Company as set forth by the Board of Directors; provided, however, that a termination for Cause pursuant to this subsection (iii) shall only be effective upon:
(1) the Holder receiving written notice of Holder’s failure to perform his duties as an executive officer of the Company; and (2) a determination by the Board of Director’s that Holder failed to improve his work performance
within thirty (30) days of receiving such notice. 
  

 2 

	 	2.	Restriction on Transfer. 

 (a) Except for the transfer of Repurchase Shares to the Company as contemplated herein, none of the Repurchase Shares or any beneficial interest therein shall be transferred, encumbered or otherwise disposed of in any way until the
termination of the Company’s Repurchase Option as set forth in Section 1. 
 (b) The Holder agrees in connection
with the Company’s initial public offering of its equity securities pursuant to a registration statement filed under the Act not to sell, make any short sale of, loan, grant any option for the purchase of or otherwise dispose of any equity
securities of the Company without the prior written consent of the Company or its underwriters, for such period of time (not to exceed one hundred eighty (180) days) from the effective date of such registration as may be requested by the
Company or such underwriters; provided that the officers and directors of the Company who own stock of the Company also agree to such restrictions. 
 (c) The Company shall not be required (i) to transfer on its books any Repurchase Shares which shall have been sold or transferred in violation of any of the provisions set forth in this Agreement, or
(ii) to treat as owner of such Repurchase Shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such Repurchase Shares shall have been so transferred. 
 3. Legends. All certificates representing any of the Repurchase Shares subject to the provisions of this Agreement shall have endorsed
thereon legends substantially in the following term: 
 (a) “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE AND MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE
COMPANY.” 
 (b) “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SHARES UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.” 
 (c) Any legend required to be placed thereon by applicable blue sky laws of any state. 
  

 3 

 4. Holder’s Representations. In connection with its purchase of the Shares, the Holder
hereby represents and warrants to the Company as follows: 
 (a) Investment Intent: Capacity to Protect
Interests. The Holder has acquired the Shares solely for his own account for investment and not with a view to or for sale in connection with any distribution of the Shares or any portion thereof and not with any present intention of
selling, offering to sell or otherwise disposing of or distributing the Shares or any portion thereof in any transaction other than a transaction exempt from registration under the Act. The Holder also represents that the entire legal and beneficial
interest of the Shares has been acquired by, and will be held for, the Holder’s account only, and neither in whole or in part for any other person. The Holder as founder of the Company fully understands the Company’s plans, operations, and
financial condition and has received all information the Holder has deemed appropriate to enable the Holder to evaluate the financial risk inherent in investing in the Shares. 
 (b) Residence. The Holder’s principal residence or business office is located at the address indicated beneath the
Holder’s signature below. 
 (c) Economic Risk. The Holder realizes that the acquisition of the Shares is a
highly speculative investment and involves a high degree of risk, and the Holder is able, without impairing his financial condition, to hold the Shares for an indefinite period of time and to suffer a complete loss of the Holder’s investment.

 (d) Restricted Securities. The Holder understands and acknowledges that the sale of the Shares has not been
registered under the Act. The Shares must be held indefinitely unless subsequently registered under the Act or an exemption from such registration is available, and the Company is under no obligation to register the Shares. 
 (e) Disposition under the Act. The Holder understands that the Shares are “restricted securities” within the
meaning of Rule 144 promulgated under the Act; that the exemption from registration under Rule 144 will not be available in any event for at least one year from the date of acquisition of the Shares, and even then will not be available unless
(i) a public trading market then exists for the Common Stock of the Company, (ii) adequate information concerning the Company is then available to the public and (iii) other terms and conditions of Rule 144 are complied with; and that
any sale of the Shares may be made only in limited amounts in accordance with such terms and conditions. 
 (f) Further
Limitations on Disposition. Without in any way limiting its representations set forth above, the Holder further agrees that the Holder shall in no event make any disposition of all or any portion of the Repurchase Shares unless and until
(i) there is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance with said Registration Statement, (ii) the resale provisions of Rule 144(k) are available in
the opinion of counsel to the Company or (iii) (A) the Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the 

  

 4 

 
circumstances surrounding the proposed disposition, (B) the Holder shall have furnished the Company with an opinion of the Holder’s counsel to the
effect that such disposition will not require registration of such stock under the Act and (C) such opinion of the Holder’s counsel shall have been concurred in by counsel for the Company, and the Company shall have advised the Holder of
such concurrence. 
 (g) Section 83(b) Election. The Holder understands that Section 83 of the
Internal Revenue Code of 1986 (the “Code”), taxes as ordinary income the difference between the amount paid for the Shares and the fair market value of the Shares as of the date any restrictions on the Shares lapse. In this context,
“restriction” means the right of the Company to buy back the Repurchase Shares pursuant to the Repurchase Option. In the event the Company has registered under the Exchange Act, “restriction” with respect to officers, directors
and 10% shareholders also means the 6-month period during which such officers, directors and 10% shareholders are subject to suit under Section 16(b) of the Exchange Act. The Holder understands that he may elect to be taxed at the time the
Repurchase Shares are purchased rather than when and as the Repurchase Option or 6-month 16(b) period expires by filing an election under Section 83(b) of the Code with the Internal Revenue Service within 30 days from the date of purchase and
satisfying certain other requirements. The Holder acknowledges and understands that, even if the fair market value of the Repurchase Shares equals the amount paid for the Repurchase Shares, the election must be made to avoid adverse tax consequences
in the future. The form for making this election is attached as Exhibit A hereto. The Holder understands that failure to make this filing timely and to file a copy of such election with Holder’s federal income tax return for the year of
the election and to supply the Company with a copy of the election, will result in the recognition of ordinary income by the Holder as the Repurchase Option lapses, or after the lapse of the 6-month 16(b) period, with the amount of such tax and
ordinary income equal to the difference between the Purchase Price and the fair market value of the Repurchase Shares at the time such restrictions lapse. 
 THE HOLDER ACKNOWLEDGES THAT IT IS THE HOLDER’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY FILE THE ELECTION UNDER SECTION 83(b), EVEN IF THE HOLDER REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO
MAKE THIS FILING ON THE HOLDER’S BEHALF. 
 (h) Valuation of Shares. The Holder understands that the
Shares have been valued by the Board of Directors for the purpose of this sale, and that the Company believes this valuation represents a fair attempt at reaching an accurate appraisal of their worth. The Holder understands, however, that the
Company can give no assurance that the price is in fact the fair market value of the Shares and that it is possible that the Internal Revenue Service would successfully assert that the value of the Shares on the date of purchase is substantially
greater than so determined. If the Internal Revenue Service were to succeed in a determination that the Shares had a value on the date of sale greater than the Purchase Price, the additional value would constitute ordinary income as of the date of
its receipt. The additional taxes (and interest) due would be payable by the Holder, and there is no provision for the Company to reimburse him for that tax liability. The Holder assumes all responsibility for such potential tax liability.

  

 5 

 5. Governing Law. 
 This agreement shall be governed by the laws of the State of Minnesota. 
 6. Attorneys’ Fees. 
 The prevailing party in any legal action, including an arbitration
proceeding, arising out of this agreement shall be entitled, in addition to any other rights and remedies such party may have, to reimbursement for its expenses, including costs and reasonable attorneys’ fees. 
 7. Additional Actions. 
 The
parties will execute such further instruments and take such further action as may reasonably be necessary to carry out the intent of this agreement. 
 8. Notices. 
 Any notices required or permitted hereunder shall be given in writing and shall
be deemed effectively given upon personal delivery or upon deposit in the United States Post Office, by regular or certified mail with postage and fees prepaid, addressed, if to Holder, at his address shown on the Company’s records and, if to
the Company, at the address of its principal corporate offices (attention: President) or at such other address as such party may designate by ten days’ advance written notice to the other party. 
 9. Adjustment for Stock Split. 
 All references to the number of Repurchase Shares and the Purchase Price of the Repurchase Shares in this Agreement shall be appropriately adjusted to reflect any stock split, stock dividend or other change in the number or type of shares
of stock (or other securities or other property) which may be made by the Company with respect to the Repurchase Shares after the date of this Agreement. 
 [The remainder of this page is intentionally left blank; signature page follows] 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written. 
  

									
	 HOLDER 
	 		 	ENTEROMEDICS INC.
				
	 	 		 	By:	 	 
	 Signature
	 		 	 Its:
	 	 
		 		 		 		 	
	 Name:
	 	 	 		 		 	
	 Address:
	 	 	 		 		 	
	 SS #:
	 	 	 		 		 	

 Signature Page to Stock Restriction Agreement 
  

 STATEMENT OF ELECTION UNDER 
 SECTION 83(b) OF THE INTERNAL REVENUE CODE 
  

	1.	Name, address and social security number of taxpayer: 

 Social Security Number: 
  

	2.	Description of property: 

                      shares of Common Stock, $.01 par value, of EnteroMedics Inc. (the “Company”), a Delaware corporation.

  

	3.	Date or dates property was transferred and taxable year in which election is made: 

  

	4.	Nature of the restrictions to which the property is subject: 

  

	5.	Fair market value at time of transfer: 

  

	6.	Amount paid: 

  

	7.	A copy of this Statement has been furnished to the Company for which taxpayer has performed services as an independent contractor or an employee, as the case may be.

  

	FILE:	One copy of this Statement immediately with the Service Center where the taxpayer’s federal income tax return is filed (but in no event more than 30 days following purchase of
the stock), one copy immediately with the Company and a third copy by attachment to taxpayer’s federal income tax return for the year. 

  

			
	 SIGNED:
	 	 
		 	    [Name]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]