Document:

Exhibit 10.1

Exhibit 10.1
INDEMNIFICATION AGREEMENT
This Indemnification Agreement (this “Agreement”), is made and entered into as of April 28, 2010, by and between AutoGenomics, Inc., a Delaware corporation (the “Company”), and Ram Vairavan (“Indemnitee”).
R E C I T A L S
A. The Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve as directors, officers, employees and other agents of the Company.
B. Indemnitee is currently serving as a director, officer, employee or other agent of the Company and the parties wish Indemnitee to continue in such capacity.
C. The Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors, officers, employees and other agents to expensive litigation risks.
D. In recognition of Indemnitee’s need for protection against personal liability in order to enhance Indemnitee’s continued and effective service to the Company, and in order to induce Indemnitee to provide services to the Company as a director, officer, employee or other agent, the Company wishes to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete) permitted by law and as set forth in this Agreement, and, to the extent insurance is maintained, for the coverage of Indemnitee under the Company’s directors’ and officers’ liability insurance policies.
A G R E E M E N T
In consideration of the foregoing recitals and of Indemnitee’s continuing to serve the Company directly or, at its request, with another enterprise, and intending to be legally bound hereby, the parties agree as follows:
1. Defined Terms and Construction of Certain Phrases. For purposes of this Agreement, the following words and phrases set forth below shall have the following meanings:
(a) “Board” shall mean the Board of Directors of the Company.
(b) References to the “Company” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or other agents, so that if Indemnitee is or was a director, officer, employee or other agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.
(c) “Change in Control” shall be deemed to have occurred if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the Company’s then outstanding Voting Securities; (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or (iii) the shareholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation that would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least 50% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series of transactions) of all or substantially all of the Company’s assets.

(d) “Expenses” shall mean any expense, liability or loss, including, without limitation, attorneys’ fees, judgments, fines, ERISA excise taxes and penalties, amounts paid or to be paid in settlement, any interest, assessments or other charges imposed thereon, and any federal, state, local or foreign taxes imposed as a result of the actual or deemed receipt of any penalties under this Agreement, paid or incurred in connection with investigating, defending, being a witness in, or participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding relating to any Indemnifiable Event.
(e) “Indemnifiable Event” shall mean any event or occurrence that takes place either prior to or after the execution of this Agreement, related to the fact that Indemnitee is or was a director, an officer or other agent of the Company, or while a director, an officer or other agent is or was serving at the request of the Company as a director, officer, employee, trustee, agent or fiduciary of another foreign or domestic corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, or was a director, officer, employee or agent of a foreign or domestic corporation that was a predecessor corporation of the Company or of another enterprise at the request of such predecessor corporation, or related to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the Proceeding is an alleged action in an official capacity as a director, officer, employee or other agent or in any other capacity while serving as a director, officer, employee or other agent of the Company, as described above.

(f) “Independent Counsel” shall be the person or body appointed in connection with Section 3, below.
(g) “Proceeding” shall mean any threatened, pending or completed action, suit or proceeding, or any inquiry, hearing or investigation, whether conducted by the Company or any other party, that Indemnitee in good faith believes might lead to the institution of any such action, suit or proceeding, whether civil, criminal, administrative, investigative or other.
(h) “Reviewing Party” shall be the person or body appointed in accordance with Section 3, below.
(i) “Voting Securities” shall mean any securities of the Company that vote generally in the election of directors.
2. Indemnification.
(a) Third-Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any Proceeding (other than an action by or in the right of the Company) by reason of (or arising in part out of) an Indemnifiable Event, against any and all Expenses if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful.
(b) Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Company or any subsidiary of the Company to procure a judgment in its favor by reason of (or arising in part out of) an Indemnifiable Event, against any and all Expenses if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interest of the Company and its shareholders; provided, however, that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to the Company in the performance of Indemnitee’s duty to the Company or its shareholders unless and only to the extent that the court in which such action or proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for expenses, and then only to the extent that the court shall determine.
(c) Participation as a Witness. The Company shall indemnify Indemnitee if Indemnitee is or was a witness or is threatened to be made a witness to any Proceeding by reason of (or arising in part out of) an Indemnifiable Event, against any and all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding.
(d) Mandatory Indemnification. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or defense of any Proceeding relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, Indemnitee shall be indemnified only against all Expenses incurred in connection with such successful issue or matter.
(e) Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.
(f) Expense Advances. If so requested in writing by Indemnitee, the Company shall advance (within 20 business days of such written request) any and all Expenses to Indemnitee (an “Expense Advance”); provided, that, if and to the extent that the Reviewing Party or a court of competent jurisdiction ultimately determines that Indemnitee is not permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to 

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reimburse the Company) for all such amounts theretofore paid. If Indemnitee has commenced legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, as provided in Section 4(b), below, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding. In addition, if the Company (or the Reviewing Party) or the Indemnitee has presented the issue of indemnification to a court of competent jurisdiction, Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or waived or have lapsed). Indemnitee’s obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.
3. Reviewing Party. Prior to any Change in Control, the Reviewing Party shall be any appropriate person or body consisting of a member or members of the Board or any other person or body appointed by the Board who is not a party to the particular Proceeding with respect to which Indemnitee is seeking indemnification; after a Change in Control, the Reviewing Party shall be the Independent Counsel referred to below. With respect to all matters arising after a Change in Control (other than a Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control) concerning the rights of Indemnitee to indemnity payments and Expense Advances under this Agreement or any other agreement or under applicable law or the Company’s Articles of Incorporation or Bylaws as now or hereafter in effect relating to indemnification for Indemnifiable Events, the Company shall seek legal advice only from Independent Counsel selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld or delayed), and who has not otherwise performed services for the Company or the Indemnitee (other than in connection with indemnification matters) within the last five years. The Independent Counsel shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. Such counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee should be permitted to be indemnified under applicable law. The Company agrees to pay the reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims, liabilities, loss and damages arising out of or relating to this Agreement or the engagement of Independent Counsel pursuant hereto.

4. Indemnification Process and Appeal.
(a) Indemnification Payment. After a final disposition of any Proceeding (whether by judgment, settlement or otherwise; and in the case of a judicial disposition, as to which all rights to appeal therefrom have been exhausted or waived or have lapsed), Indemnitee shall be entitled to indemnification of Expenses, and shall receive payment thereof, from the Company in accordance with this Agreement no later than 45 days after Indemnitee has made written demand on the Company for indemnification, unless (i) the Reviewing Party has given a written opinion to the Company that Indemnitee is not entitled to indemnification under applicable law, or (ii) a court having subject matter jurisdiction thereof or a court in which such Proceeding is or was pending, has determined (after a final judicial decision as to which all rights to appeal therefrom have been exhausted or waived or have lapsed) that Indemnitee is not entitled to indemnification under applicable law.
(b) Suit to Enforce Rights. Regardless of any action by the Reviewing Party, if Indemnitee has not received full indemnification within 45 days after making a demand in accordance with Section 4(a), above, Indemnitee shall have the right to enforce his or her indemnification rights under this Agreement by commencing litigation in any court in the State of California having subject matter jurisdiction thereof seeking an initial determination by the court or challenging any determination by the Reviewing Party or any aspect thereof. The Company hereby consents to service of process and to appear in any such proceeding. Any determination by the Reviewing Party not challenged by the Indemnitee shall be binding on the Company and Indemnitee. The failure of the Reviewing Party to render an opinion shall not be construed to be a determination by the Reviewing Party. The remedy provided for in this Section 4(b) shall be in addition to any other remedies available to Indemnitee in law or equity.
(c) Defense to Indemnification, Burden of Proof and Presumptions. It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement (other than an action brought to enforce a claim for Expenses incurred in defending a Proceeding in advance of its final disposition where the required undertaking has been tendered to the Company) that it is not permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. In connection with any such action or any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proving such a defense or determination shall be on the Company. Neither the failure of the Reviewing Party or the Company (including its Board, independent legal counsel or its shareholders) to have made a determination prior to the commencement of such action by Indemnitee that indemnification of the claimant is proper under the circumstances because he or she has met the standard of conduct set forth in applicable law, nor an actual determination by the Reviewing Party or the Company (including its Board, Independent Counsel or its shareholders) that the Indemnitee had not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the Indemnitee has not met the applicable standard of conduct. For purposes of this Agreement, the termination of any claim, 

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action, suit or proceeding, by judgment, order, settlement (whether with or without court approval), conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law.

5. Indemnification for Expenses Incurred in Enforcing Rights. The Company shall indemnify Indemnitee against any and all Expenses and, if requested in writing by Indemnitee, shall, within 20 business days of such written request, advance such Expenses to Indemnitee that are incurred by Indemnitee in connection with any claim asserted against or action brought by Indemnitee for:
(a) indemnification of Expenses or Expense Advances by the Company under this Agreement or any other agreement or under applicable law or the Company’s Articles of Incorporation or Bylaws now or hereafter in effect relating to indemnification for Indemnifiable Events; and/or
(b) recovery under directors’ and officers’ liability insurance policies maintained by the Company,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, Expense Advances, or insurance recovery, as the case may be; provided that, if and to the extent that a court of competent jurisdiction determines (and a final judicial determination as to which all rights of appeal therefrom have been exhausted or waived or have lapsed) that each of the material assertions made by Indemnitee in such Proceeding was not made in good faith or was frivolous, the Company shall not be obligated to pay any such Expenses incurred by Indemnitee in connection with such suit and shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore paid under this Section 5.
6. Notification and Defense of Proceeding.
(a) Notice/Cooperation by Indemnitee. Indemnitee shall give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought under this Agreement. Indemnitee shall also provide the Company such information and cooperation as the Company from time to time may reasonably request and that shall reasonably be within Indemnitee’s power to provide. The Company shall have no obligation to indemnify Indemnitee under this Agreement to the extent that Indemnitee’s delay or failure to provide prompt notice, information or cooperation as required under this Section 6(a) results in a material impairment of the Company’s ability to defend the Proceeding (as provided in Section 6(d), below) or in the loss of coverage under any applicable insurance policy or other agreement.
(b) Notice to Insurers. If at the time of the receipt of a notice of a claim pursuant to Section 6(a), above, the Company has directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company thereafter shall take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

(c) Selection of Counsel. With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof, the Company will be entitled to participate in the Proceeding at its own expense and except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel selected by the Company and approved by Indemnitee, which approval shall not be unreasonably withheld or delayed. After notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company will not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ his or her own counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company shall be at Indemnitee’s expense unless: (i) the employment of counsel by Indemnitee has been authorized by the Company; (ii) Indemnitee has reasonably determined and either the Company shall have agreed, or disinterested counsel (as defined in this Section 6(c)) shall have determined, that there may be a conflict of interest between Indemnitee and the Company in the defense of the Proceeding; (iii) after a Change in Control, the employment of counsel by Indemnitee has been approved by the Independent Counsel; or (iv) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, in each of which case all Expenses of the Proceeding shall be borne by the Company and Indemnitee’s counsel shall have been approved by the Company (which approval may not be unreasonably withheld or delayed) and any carrier of an applicable insurance policy if required under the terms of that policy or applicable law. As used in this Section 6(c) “disinterested counsel” shall mean counsel selected and compensated by the Company and approved by Indemnitee (which approval may not be unreasonably withheld or delayed), to determine whether a conflict of interest may exist, which counsel shall not represent the Company, Indemnitee or any other party to the Proceeding for which indemnification is sought. Disinterested counsel shall be selected promptly following the notice from Indemnitee to the Company of Indemnitee’s belief that a conflict of interest may 

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exist. The Company shall not be entitled to assume the defense of any Proceeding as to which the determination provided for in (ii) above shall have been made. Nothing herein shall limit the right of Indemnitee to employ counsel at Indemnitee’s sole expense.
(d) Settlement of Claims. The Company shall not be liable to indemnify Indemnitee under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected without the Company’s written consent; provided, however, that if a Change in Control has occurred, the Company shall be liable for indemnification of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the settlement. The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s prior written consent. Neither the Company nor Indemnitee will unreasonably withhold its consent to any proposed settlement. The Company shall not be liable to indemnify Indemnitee under this Agreement with regard to any judicial award if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense of such action; the Company’s liability hereunder shall not be excused if participation in the Proceeding by the Company was barred by this Agreement. In addition, the Company shall not be liable to indemnify Indemnitee under this Agreement in excess of the total amount at which settlement reasonably could have been made, or for any initial Expenses incurred by Indemnitee following the time such settlement reasonably could have been affected, if Indemiiitee shall have unreasonably delayed, refused or failed to enter into a settlement Proceeding (or investigation or appeal thereof) recommended in good faith, in writing, by the Company.

7. Exceptions. Any other provisions of this Agreement to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:
(a) Claims Initiated by Indemnitee. To indemnify or advance Expenses to Indemnitee with respect to any Proceedings initiated or brought voluntarily (and not by way of defense) by Indemnitee against the Company or any agent of the Company unless (i) the Company has joined in or the Board has consented to the initiation of such Proceeding, (ii) the Proceeding is brought to establish or enforce a right to indemnification under Section 5 of this Agreement, or (iii) the Proceeding is instituted after a Change in Control and Independent Counsel has approved its initiation;
(b) No Duplication of Payments. To make any payment in connection with any claim made against Indemnitee to the extent Indemnitee has otherwise received payment (under any insurance policy, Bylaw or otherwise) of the amounts otherwise indemnifiable hereunder; or
(c) Claims Under Section 16(b). To indemnify Indemnitee for Expenses and the payment of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.
8. Additional Indemnification Rights; Nonexclusivity.
(a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement or the Company’s Bylaws. If any change, after the date of this Agreement, is made to any applicable law, statute or rule which expands the right of a California corporation to indemnify a member of its board of directors, an officer, an employee or other agent, such change shall be, ipso facto, within the purview of Indemnitee’s rights and the Company’s obligations under this Agreement. If any change in any applicable law, statute or rule narrows the right of a California corporation to indemnify a member of its board of directors, an officer, an employee or other agent, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights and obligations hereunder.
(b) Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive to any rights to which Indemnitee may be entitled under the Company’s Articles of Incorporation, its Bylaws, any agreement, any vote of shareholders or disinterested directors, the General Corporation Law of the State of California, or otherwise, both as to actions in Indemnitees’ official capacity and as to actions in another capacity while holding such office.
9. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that in certain instances, federal law or applicable public policy may prohibit the Company from indemnifying its directors, officers, employees or other agents under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company may be required in the future to undertake with the Securities and Exchange Commission or applicable state securities agencies to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee.

10. Directors’ and Officers’ Liability Insurance. The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with 

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reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the Company performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. To the extent the Company maintains an insurance policy or policies providing directors’ and officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any director or officer of the Company. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a subsidiary or parent of the Company.
11. Effectiveness of Agreement. This Agreement shall be effective as of the date set forth on the first page of this Agreement and may apply to acts or omissions of the Indemnitee which occurred prior to such date if Indemnitee was a director, officer, employee or agent of the Company, or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, at the time such act or omission occurred.
12. Period of Limitation. No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company or any affiliate of the Company against Indemnitee, Indemnitee’s spouse, heirs, executors, or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, or such longer period as may be required by state law under the circumstances. Any claim or cause of action of the Company or its affiliates shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action the shorter period shall govern.
13. Continued Employment Period. No provision contained in this Agreement shall be construed as conferring upon Indemnitee any right with respect to continuance of performance of services for the Company, nor shall any such provisions interfere in any way with the right of the Company to terminate Indemnitee’s services at any time with or without cause.
14. General Provisions.
14.1 Entire Agreement. This Agreement sets forth the entire agreement between the parties with regard to the subject matter of this Agreement. All agreements, covenants, representations and warranties, express or implied, oral and written, of the parties with regard to the subject matter of this Agreement are contained in this Agreement. No other agreements, covenants, representations or warranties, express or implied, oral or written, have been made by either party to the other with respect to the subject matter of this Agreement. All prior and contemporaneous conversations, negotiations, covenants and warranties with respect to the subject matter of this Agreement are waived, merged in this Agreement and superseded by this Agreement. This is an integrated agreement.

14.2 Governing Law and Choice of Forum. The validity, construction and performance of this Agreement, and any action arising out of or relating to this Agreement, shall be governed by the laws, without regard to the laws as to choice or conflict of laws, of the State of California. Any action arising out of or relating hereto, or the interpretation, performance or breach hereof, shall be instituted in the United States District Court for the Central District of California or any court of the State of California located in Orange County, and each party irrevocably submits to the jurisdiction of those courts and waives any and all objections to jurisdiction or venue that it may have under the laws of the State of California or otherwise in those courts in any such action. Each party agrees to accept service of process in any such action in the manner provided for in Section 14.8, below.
14.3 Attorneys’ Fees. In any action, litigation or proceeding (including arbitration) between the parties arising out of or in relation to this Agreement, the prevailing party in such action shall be awarded, in addition to any damages, injunctions or other relief, and without regard to whether or not such matter be prosecuted to final judgment, such party’s costs and expenses, including, but not limited to, taxable costs and reasonable attorneys’, accountants’ and experts’ fees incurred in bringing such action, litigation or proceeding and/or enforcing any judgment or order granted therein, all of which shall be deemed to have accrued upon the commencement of such action, litigation or proceeding. Any judgment or order entered in such action, litigation or proceeding shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such judgment. If the judgment or order should fail to contain such a provision, the prevailing party shall have the right to initiate further action to recover its attorneys’ fees incurred in enforcing such judgment or order, which right shall survive the entry of judgment or order in the initial action, litigation or proceeding. For the purpose of this Section 14.3, attorneys’ fees shall include, without limitation, fees incurred in the following: (1) post-judgment motions; (2) contempt proceedings; (3) garnishment, levy, and debtor and third-party examinations; (4) discovery; and (5) bankruptcy litigation.

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14.4 Interpretation. The language in all parts of this Agreement shall be in all cases construed simply according to its fair meaning and not strictly for or against any party. Whenever the context requires, all words used in the singular will be construed to have been used in the plural, and vice versa, and each gender will include any other gender. The captions of the Sections of this Agreement are for convenience only and shall not affect the construction or interpretation of any of the provisions of this Agreement.

14.5 Waiver and Amendment. This Agreement may be amended, supplemented, modified and/or rescinded only through an express written instrument signed by all parties or their respective successors and permitted assigns. Any party may specifically and expressly waive in writing any portion of this Agreement or any breach hereof, but only to the extent such provision is for the benefit of the waiving party, and no such waiver shall constitute a further or continuing waiver of any preceding or succeeding breach of the same or any other provision. The consent by one party to any act for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or similar acts in the future, and no forbearance by a party to seek a remedy for noncompliance or breach by another party shall be construed as a waiver of any right or remedy with respect to such noncompliance or breach.
14.6 Assignment. Except as specifically provided otherwise in this Agreement, neither this Agreement nor any interest herein shall be assignable (voluntarily, involuntarily, by judicial process, operation of law or otherwise), in whole or in part, by any party without first obtaining the prior written consent of the other party. Any attempt at such an assignment without such consent shall be void and, at the option of such other party, shall be an incurable breach of this Agreement resulting in the termination of this Agreement.
14.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. Nothing in this Section 14.7 shall be construed to limit the protection afforded Indemnitee under this Agreement which would occur upon a Change in Control. The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable Event even though Indemnitee may have ceased to serve in such capacity at the time of any Proceeding.
14.8 Notices. All notices, requests, demands and other communications made under this Agreement shall be in writing, correctly addressed to the recipient at the addresses set forth under such recipient’s signature on the signature page hereto and shall be deemed to have been duly given; (i) upon delivery, if served personally on the party to whom notice is to be given; or (ii) on the date or receipt, refusal or non-delivery indicated on the receipt if mailed to the party to whom notice is to be given by first class mail, registered or certified, postage prepaid, or by air courier. Any party may give written notice of a change of address in accordance with the provisions of this Section 14.8 and after such notice of change has been received, any subsequent notice shall be given to such party in the manner described at such new address.
14.9 Severability. Each provision of this Agreement is intended to be severable. Should any provision of this Agreement or the application thereof be judicially declared to be or becomes illegal, invalid, unenforceable or void, the remainder of this Agreement will continue in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such illegal, void or unenforceable provision.

14.10 Further Action. Each party agrees to perform any further acts and to execute and deliver any other documents which may be reasonably necessary to effect the provisions of this Agreement.
14.11 Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.
14.12 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.
[ remainder of page intentionally left blank; signature page follows ]

7

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first set forth above.
 
	
					
	“THE COMPANY”:
	 
	“INDEMNITEE”:

	AUTOGENOMICS, INC.,
a Delaware corporation
	 
	 
	 

	 
	 
	 
	 

	By:
	/s/ Fareed Kureshy
	 
	Name:
	/s/ Ram Vairavan

	Name:
	Fareed Kureshy
	 
	 
	 

	Title:
	President & CEO
	 
	 
	 

	 
	 

	Address:
AutoGenomics, Inc.
2980 Scott Street
Vista, CA 92081
Attention: Fareed Kureshy
   Chief Executive Officer
	 
	Address:
AutoGenomics, Inc.
2980 Scott Street
Vista, CA 92081

8

Schedule to Exhibit 10.1
The following directors and executive officers of the Company are parties to Indemnification Agreements with the Company which are substantially identical in all material respects to the representative Indemnification Agreement to which this schedule is attached and which is filed as an exhibit to the Company’s registration statement on Form S-1 (the “Registration Statement”), except as to the parties thereto and the dates of execution set forth below. These other Indemnification Agreements are not being filed with the Registration Statement, pursuant to Instruction 2 to Item 601 of Regulation S-K promulgated under the Securities Exchange Act of 1934, as amended.
 
	
			
	Name of Signatory
	 
	Date

	Thomas V. Hennessey
	 
	July 18, 2002

	Laurence M. Demers
	 
	March 27, 2008

	Fareed Kureshy
	 
	March 27, 2008

	Shailendra Singh
	 
	April 14, 2010

	Ram Vairavan
	 
	April 28, 2010

	Stephen Allison
	 
	July 27, 2012

	Charles Birmingham
	 
	August 27, 2012

	Peter Wilding
	 
	November 1, 2012

	Joseph Coyne
	 
	July 22, 2013

	Adam Levinson
	 
	October 15, 2013

	John Zacamy
	 
	September 9, 2014Exhibit 10.2

Exhibit 10.2 
2000 EQUITY INCENTIVE PLAN 
OF 
AUTOGENOMICS INCORPORATED 
Section 1. Description of this Plan. This is the 2000 Equity Incentive Plan, dated as of December 13, 2000 (this “Plan”), of AutoGenomics Incorporated, a California corporation (the “Company”). Under this Plan, directors and employees of, and advisors and consultants to, the Company or any of its subsidiaries, to be selected as set forth below, may be granted options (“Options”) to purchase shares of the voting common stock of the Company (“Common Stock”) or be granted the right to purchase shares of Common Stock (a “Stock Purchase Right”). For purposes of this Plan, the term “subsidiary” shall have the same meaning as “subsidiary corporation” as such term is defined in Section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”), where the Company is the “employer corporation.” It is intended that the Options granted under this Plan will either qualify for treatment as incentive stock options under Section 422 of the Code and be designated “Incentive Stock Options” or not qualify for such treatment and be designated “Nonqualified Stock Options.” 
Section 2. Purpose of this Plan. The purpose of this Plan is to further the growth, development and financial success of the Company by providing incentives to certain key persons by assisting them in acquiring shares of Common Stock so that they may benefit directly from the Company’s growth, development and financial success. 
Section 3. Eligibility. The persons who are eligible to receive grants of Options or of Stock Purchase Rights under this Plan shall be the directors and employees of, and advisors and consultants to, the Company or any of its subsidiaries. A person who holds an Option or a Stock Purchase Right under this Plan is sometimes referred to herein as a “Participant.” A person who holds an Option under this Plan is sometimes referred to as an “Optionee.” 
Section 4. Administration. This Plan shall be administered by the Board of Directors of the Company (the “Board”); provided, however, that the Board may, in its discretion, delegate the administration of this Plan at any time to a committee of the Board, in which event, all references to the “Board” in this Plan shall be deemed to be references to such committee. The Board shall grant Options and Stock Purchase Rights under this Plan and, without limiting the generality of the foregoing and subject to the terms of this Plan, shall (i) select the Participants in this Plan, (ii) specify the number of shares of Common Stock with respect to which Options or Stock Purchase Rights are granted, (iii) specify the terms and conditions of Options or Stock Purchase Rights granted under this Plan, which terms and conditions need not be identical as to the various Options and Stock Purchase Rights granted; (iv) determine whether Options are to be Incentive Stock Options or Nonqualified Stock Options; (v) interpret this Plan; (vi) prescribe, amend and rescind rules relating to this Plan; (vii) determine the rights and obligations of Participants under this Plan; and (viii) authorize the amendment of the terms of any outstanding Options or Stock Purchase Rights. The interpretation and construction by the Board of any provision of this Plan or of any Option or Stock Purchase Right granted under this Plan shall be final. No member of the Board shall be liable for any action or determination made in good faith with respect to this Plan or any Option or Stock Purchase Right granted under this Plan. 
Section 5. Shares Subject to this Plan. The number of shares of Common Stock which may be purchased pursuant to the exercise of Options or Stock Purchase Rights granted under this Plan shall not exceed one million three hundred and fifty thousand (1,350,000) shares, subject to adjustment as provided in Sections 12 and 13 hereof. Upon the expiration or termination for any reason of an outstanding Option or Stock Purchase Right which shall not have been exercised in full, or in the event that any shares of Common Stock acquired pursuant to this Plan are reacquired by the Company, any shares of Common Stock then remaining unissued which shall have been reserved for issuance upon such exercise or the shares reacquired, as the case may be, shall again become available for the granting of additional Options or Stock Purchase Rights under this Plan. Subject to adjustment as provided in Sections 12 and 13 hereof, the maximum number of shares of Common Stock which may be issuable pursuant to Options and Stock Purchase Rights granted to any Participant is three hundred thousand (300,000) shares. 
Section 6. Exercise Rights. Each Option granted to employees other than officers of the Company under this Plan shall vest (i.e. be exercisable) at the rate of at least 20% per year over five (5) years from the date the Option is granted, subject to reasonable conditions such as continued employment. Unless employment is terminated for cause 

as defined by applicable law, the terms of the Option or a contract of employment, to the extent that the Optionee is entitled to exercise the Option on the date employment terminates, the Optionee shall be entitled to exercise the Option for: (i) at least six (6) months from the date of termination if termination was caused by death or disability; or (ii) at least 30 days from the date of termination if termination was caused by other than death or disability. 
Section 7. Options. Each Option granted under this Plan shall be evidenced by a written stock option agreement (an “Option Agreement”) executed by the Company and accepted by the Optionee, which shall (i) specify the number of shares of Common Stock which may be purchased pursuant thereto, the exercise price therefor, and the installments, if any, in which the Option may be exercised, (ii) indicate whether such Option is to be an Incentive Stock Option or a Nonqualified Stock Option and, if an Incentive Stock Option, contain terms and conditions permitting such Option to qualify for treatment as an incentive stock option under Section 422 of the Code, and (iii) contain such other terms and conditions not inconsistent with this Plan as the Board deems necessary or desirable to include therein. The exercise price of any Option granted under this Plan shall not be less than 85% of the fair value of the Common Stock on the date such Option is granted, and the exercise price of any Option granted under this Plan to any person who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company shall be 110% of such fair value. 
 
Section 8. Stock Purchase Rights. Each Participant who receives a Stock Purchase Right shall enter into a stock purchase agreement with the Company (a “Restricted Stock Purchase Agreement”) which shall (i) specify the number of shares of Common Stock which such Participant may purchase, the purchase price therefor, and any restrictions on, and repurchase rights with respect to, such shares of Common Stock and (ii) contain such other terms and conditions not inconsistent with this Plan as the Board deems necessary or desirable to include therein. The exercise price of any Stock Purchase Right granted under this Plan shall not be less than (i) 85% of the fair value of the Common Stock on the date such Stock Purchase Right is granted or at the time the Participant purchases shares of Common Stock pursuant thereto or, (ii) in the case of a Stock Purchase Right granted to any person who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, 100% of the fair value of the Common Stock on the date such Stock Purchase Right is granted or at the time the Participant purchases shares of Common Stock pursuant thereto. 
Section 9. Issuance of Common Stock. The Company’s obligation to issue shares of Common Stock upon exercise of an Option or Stock Purchase Right is expressly conditioned upon the completion by the Company of any registration or other qualification of such shares under any state and/or federal law or rulings and regulations of any government regulatory body or the making of such investment representations or other representations and undertakings by the Participant (or his or her legal representative, heir or legatee, as the case may be) in order to comply with the requirements of any exemption from any such registration or other qualification of such shares which the Company in its sole discretion shall deem necessary or advisable. 
Section 10. Nontransferability. Unless provided to the contrary in any Option Agreement or Restricted Stock Purchase Agreement, no Option or Stock Purchase Right shall be assignable or transferable, except by will, by the laws of descent and distribution, by instrument to an inter vivos or testamentary trust in which the Option or Stock Purchase Right, as the case may be, is to be passed to one or more beneficiaries of the Participant upon the death of the Participant. During the lifetime of a Participant, an Option or a Stock Purchase Right shall be exercisable only by such Participant. After the death of any Participant, an Option or a Stock Purchase Right may be exercised prior to its termination only by such Participant’s legal representative, legatee or a person who acquired the right to exercise such Option or Stock Purchase Right, as the case may be, by reason of the death of the Participant. 
Section 11. Repurchase Right Upon Termination of Employment. To the extent that an Option Agreement or a Restricted Stock Purchase Agreement with an employee provides that, upon the termination of such employee’s employment with the Company (including termination upon death or disability, as well as resignation and termination by the Company with or without cause), the Company shall have the right to repurchase any or all of the Common Stock acquired by a Participant pursuant thereto, such provision shall comply with Sections 260.140.41(k) and 260.140.42(h) of Title 10 of the California Code of Regulations. 
 
Section 12. Stock Splits, Stock Dividends, Recapitalizations and Reorganizations. If the outstanding shares of Common Stock of the Company are increased, decreased or exchanged for different securities through a stock split, 

2

stock dividend, recapitalization, reorganization or similar capital adjustment (other than in connection with a merger or consolidation described in Section 13), appropriate adjustments shall be made in (i) the aggregate number of shares of Common Stock covered by this Plan and/or the kind of shares subject to this Plan, (ii) the number and kind of shares of capital stock which may be purchased pursuant to the exercise of outstanding Options or Stock Purchase Right granted under this Plan, and (iii) the exercise price of outstanding Options or the purchase price for outstanding Stock Purchase Rights granted under this Plan. Such adjustments shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. 
Section 13. Certain Corporate Transactions. Except as otherwise provided in an Option Agreement, in the event of any Corporate Transaction (as such term is defined below), unless each outstanding Option is expressly assumed, or an equivalent option is substituted, by the corporation surviving such Corporate Transaction or by a parent or subsidiary of such surviving corporation, each outstanding Option will (i) become exercisable in full immediately prior to the consummation of such Corporate Transaction and (ii) terminate upon the consummation of such Corporate Transaction to the extent not exercised prior thereto. Any shares of Common Stock issued pursuant to any Stock Purchase Right shall, except as otherwise provided in the applicable Restricted Stock Purchase Agreement, become fully vested upon the consummation of a Corporate Transaction. As used in this Section 13, “Corporate Transaction” means any of the following stockholder approved transactions to which the Company is a party: (i) a merger or consolidation in which the Company is not the surviving entity; (ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company (including the capital stock of the Company’s subsidiary corporations) in connection with the complete liquidation or dissolution of the Company; (iii) any merger in which the Company is the surviving entity but in which the shares of the Company’s capital stock outstanding immediately prior to such transaction are converted into the right to receive cash, debt securities and/or equity securities of another corporation or (iv) the sale by the holders of more than 90% of the outstanding shares of the Company’s capital stock in a single transaction or a series of related transactions. The Company shall provide written notice to each holder of any Option at least ten days prior to the consummation of any Corporate Transaction, which notice shall state whether or not the outstanding Options will be expressly assumed, or equivalent options will be substituted for the outstanding Options, by the corporation surviving such Corporate Transaction or by a parent or subsidiary of such surviving corporation, and if such is not the case, stating that each outstanding Option will become exercisable in full immediately prior to the consummation of such Corporate Transaction and will terminate upon the consummation of such Corporate Transaction to the extent not exercised prior thereto. The holder of any Option which will terminate upon the consummation of any Corporate Transaction shall have the right to make such holder’s election to exercise such Option immediately prior to the consummation of such Corporate Transaction contingent upon the successful consummation of such Corporate Transaction, such that if such Corporate Transaction is not consummated, such Option shall not be deemed exercised. 
 
Section 14. Dissolution or Liquidation. In the event of any dissolution or liquidation of the Company, each outstanding Option shall terminate immediately prior to the consummation of such dissolution or liquidation or at such other time and subject to such other conditions as shall be determined by the Board; provided, however, that the Company shall provide written notice to each holder of any Option which shall be so terminated at least ten days prior to such termination. 
Section 15. Rights as a Stockholder. A Participant shall have no rights as a stockholder with respect to any shares covered by any Option or Stock Purchase Right until the date of the issuance of a stock certificate to such Participant for such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Sections 12 and 13. 
Section 16. Financial Information. A Participant shall have the right to receive financial statements at least annually. The financial statements issued to Plan Participants need not be audited nor must the financial statements be prepared in accordance with generally accepted accounting principles. 
Section 17. Not an Employment Agreement. Nothing contained in this Plan or in any Option Agreement or Stock Purchase Agreement shall confer on any Participant any right to remain in the employ of the Company or one of its subsidiaries or shall limit the ability of the Company or any of its subsidiaries to terminate, with or without cause, in its sole discretion, the employment of any Participant. 

3

Section 18. Withholding of Taxes. The Company or any applicable subsidiary may deduct and withhold from the wages, salary, bonus and other income paid by the Company or such subsidiary to the Participant the requisite tax upon the amount of taxable income, if any, recognized by the Participant in connection with the exercise of any Option, the sale of Common Stock issued upon the exercise of any Option, the purchase of Common Stock pursuant to any Stock Purchase Right or the lapse of any restrictions on, or repurchase right with respect to, the Common Stock purchase pursuant to any Stock Purchase Right, whichever is applicable, all as may be required from time to time under any federal or state tax laws and regulations. This withholding of tax shall be made from the Company’s or such subsidiary’s concurrent or next payment of wages, salary, bonus or other income to the Participant or by payment to the Company or such subsidiary by the Participant of the required withholding tax, as the Board may determine. 
 
Section 19. Arbitration. Any dispute or controversy concerning this Plan or any Option or Stock Purchase Right granted under this Plan, or otherwise with respect to the rights of any Participant under any Option or Option Agreement, Stock Purchase Right or Stock Purchase Agreement or this Plan, including a dispute pertaining to the validity of this Section 19, shall be resolved through binding arbitration before a single arbitrator in Orange County, California in accordance with the Commercial Rules of Arbitration of the American Arbitration Association then in effect. The award of the arbitrator may be enforced in any court of competent jurisdiction. Each party shall bear such party’s own legal fees and other costs of such arbitration proceedings, and the parties shall each pay one-half of the costs of the arbitrator and of the American Arbitration Association. The arbitrator shall have no authority to require either party to pay the attorneys’ fees or costs of the other party as part of the arbitration award. 
Section 20. Amendment of this Plan. The Board may make such amendments to this Plan and, with the consent of each Participant affected, make such changes in the terms and conditions of granted Options or Stock Purchase Rights as it shall deem advisable. 
Section 21. Termination of this Plan. No Option or Stock Purchase Right may be granted hereunder on or after the tenth anniversary of the effective date of this Plan. This Plan shall terminate when all shares of Common Stock which may be issued hereunder have been so issued. In addition, the Board may in its absolute discretion terminate this Plan at any time. No such termination, other than as provided for herein, shall in any way affect any Option or Stock Purchase Right then outstanding. 
Section 22. Effective Date of this Plan. The effective date of this Plan is December 13, 2000, the date this Plan was adopted by the Board. This Plan shall be approved by the stockholders of the Company within 12 months of the effective date of this Plan. Any Option or Stock Purchase Right exercised before such stockholder approval is obtained shall be deemed rescinded if such stockholder approval is not obtained within such 12 month period. 
 

4

AutoGenomics, Inc. 
2000 INCENTIVE STOCK OPTION AGREEMENT 
A G R E E M E N T 
This Option is intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, and will be interpreted accordingly. 
 
	
		
	1.
	Vesting Provisions. Your Options vest (i.e. become exercisable) over a four year period in equal annual installments of 25% of the total number of Shares on each anniversary of the Date of Grant indicated on the cover letter to this Agreement, such that from and after the fourth anniversary of the Date of Grant, the Option shall be vested as to all of the Shares and fully exercisable. These installments shall be cumulative, such that Optionee may exercise the Option as to any or all of the Shares covered by any installment at any time or times after such installment vests and prior to termination of the Option. No additional shares will vest after your employment has terminated for any reason. Optionee may, under certain circumstances and subject to certain conditions described below, exercise all or any part of this Option prior to the date on which it vests. 

 
	
		
	2.
	Exercise and Delivery of Shares. The Option may be exercised only before it expires, and shall be exercisable at any time prior to termination by delivering (i) written notice to the Company specifying the number of full Shares to be purchased, (ii) payment of the Exercise Price per share in cash, by check, or in such other form of lawful consideration as the Board may approve, and (iii) an executed Restricted Stock Purchase Agreement with two executed, undated stock powers as provided in the Restricted Stock Purchase Agreement. At any time prior to the termination of Optionee’s employment with the Company, the Option may be exercised as to all or any portion of the Option that has not vested (an “early exercise”); provided, however, that the Shares purchased upon an early exercise shall be deemed “Restricted Shares” and shall be subject to the Company’s repurchase right at cost as set forth in Section 9 below. The Shares that initially constitute Restricted Shares as the result of an early exercise shall cease to be Restricted Shares at the same rate as, and only to the extent that, that portion of this Option that was exercised to purchase such Restricted Shares would have vested (sometimes referred to herein as “reverse vesting”). For example, if this Option has vested as to 25% of the Shares covered hereby and the Optionee makes an early exercise of this Option in full, then 75% of the Shares covered hereby will be deemed Restricted Shares and, such Restricted Shares will cease to be Restricted Shares (i.e., reverse vest) as provided in the cover page hereto and Section 1 above. To the extent the Option is exercised in part but not in full, (i) an exercise shall be deemed to represent an election to exercise the Option to the extent vested and any additional Shares shall be deemed Restricted Shares and (ii) the Restricted Shares will be deemed to reverse vest until all of such shares have ceased to be Restricted Shares before the remaining unexercised portion of the Option shall continue to vest. Except as otherwise expressly provided herein, vesting of the Option (and reverse vesting of any Restricted Shares) shall cease upon the termination of Optionee’s employment with the Company for any reason. 

 
	
		
	3.
	Termination. This Agreement and the Option shall terminate upon the first to occur of the following: (i) ten years from the date of this Agreement; (ii) the termination of the Option as provided in Sections 14 and 15 of the Plan; (iii) the termination of Optionee’s employment with the Company for Cause (as such term is defined in the Restricted Stock Purchase Agreement); and (iv) three months after the termination of Optionee’s employment with the Company, in the event such Optionee’s employment is terminated by such Optionee or by the Company for other than Cause (unless Optionee’s employment terminates due to retirement, death or disability or Optionee dies or becomes disabled within three months of the date on which Optionee’s employment terminates (other than by the Company for Cause), in which case this Agreement and the Option shall terminate six months after Optionee’s employment terminates). A leave of absence from employment taken with the consent of the Company shall not be considered a termination of employment for purposes of this Agreement. 

 

1

	
		
	4.
	Nontransferability of Option. The Option may not be assigned or transferred, except by will, by the laws of descent and distribution, or by instrument to an inter vivos or testamentary trust in which the Option is to be passed to one or more beneficiaries of Optionee upon the death of Optionee. During the lifetime of Optionee, the Option shall be exercisable only by Optionee. After the death of Optionee, the Option may be exercised prior to its termination only by Optionee’s legal representative, legatee or a person who acquired the right to exercise the Option by reason of the death of Optionee. Any attempt to assign or transfer the Option contrary to the provisions hereof shall be null and void. 

 
	
		
	5.
	Adjustments. Pursuant to Sections 12 and 13 of the Plan, the number or kind of shares issuable upon exercise of the Option and/or the Exercise Price is subject to adjustment in the event of certain stock splits, stock dividends, recapitalizations, reorganizations or similar capital adjustments and in connection with certain mergers, consolidations and asset sales. 

 
	
		
	6.
	Compliance With Securities Law. Optionee agrees to exercise the Option in compliance with all applicable federal and state securities laws and agrees to cooperate with the Company in taking any and all action which may be deemed necessary or desirable to ensure such compliance. 

 
	
		
	7.
	Tax Consequences of Exercising this Option. The Option is intended to constitute an Incentive Stock Option under section 422 of the Code. Under the Code, upon exercise of the Option, the difference between the exercise price of the Option and the fair market value of the Shares purchased at the time of such exercise (the “Spread”) is a tax preference item for purposes of computing your alternative minimum tax for the taxable year in which the Option is exercised. To the extent that Optionee elects to make an early exercise of the Option, however, Section 83(a) of the Code provides that the Spread with respect to any 

 
	
		
	 
	Restricted Shares (i.e., shares that are subject to the Company’s repurchase right at cost as provided below) will not constitute a tax preference item until such time as such shares vest and cease to be Restricted Shares subject to the Company’s repurchase right at cost. (Under the Code, such a repurchase right is deemed to constitute a “substantial risk of forfeiture” and the Code delays the recognition of the tax preference item until there is no substantial risk of forfeiture.) Individuals may, however, elect to recognize the entire tax preference item at the time of such early exercise, rather than when and as the Company’s repurchase right expires, by filing an election under Section 83(b) of the Code (a “Section 83(b) Election”) with the Internal Revenue Service within 30 days from the date of such early exercise. The making of an 83(b) Election may subject the individual making such election to additional tax pursuant to the alternative minimum tax provisions of the Code in the year of exercise, but will eliminate any tax preference item related to such exercise in computing such individual’s alternative minimum tax in future years. Depending on the Spread at the time of exercise and the Spread at the time the Restricted Shares vest, this could reduce (but could, under certain circumstances, also increase) the amount of tax that such individual would ultimately need to pay in connection with the exercise of the Option. The decision to make an 83(b) election is a complex one and should be reviewed carefully with a tax advisor. Optionee acknowledges, agrees and understands that (i) Optionee shall determine whether or not to make a Section 83(b) Election, (ii) Optionee shall be responsible for filing with the Internal Revenue Service the form necessary to make a Section 83(b) Election if Optionee chooses to make a Section 83(b) Election, and (iii) if Optionee makes a Section 83(b) Election, a copy of such election form must also be (x) filed with Optionee’s federal income tax return for the tax year in which the early exercise is made and (y) provided to the Chief Financial Officer of the Company. Optionee understands that the failure to file such a Section 83(b) election in a timely manner may result in adverse tax consequences to Optionee. 

 

2

	
		
	8.
	Company’s Repurchase Right at Cost. During the 90 day period following Optionee’s termination of employment with the Company for any reason whatsoever (or in the case of Shares issued upon exercise of this Option in accordance with its terms after the date of termination, within 90 days after the date of such exercise), the Company shall have the right to repurchase from Optionee any or all of the Shares that constitute Restricted Shares as of the date of such termination (or subsequent exercise, as applicable) for an amount equal to the original purchase price therefor, as is more fully set forth in the Restricted Stock Purchase Agreement. 

 
	
		
	9.
	Delivery of Financial Information. The Company shall provide financial statements for the Company at least annually to Optionee so long as the Option remains exercisable or, to the extent Optionee has exercised the Option, so long as Optionee continues to hold Shares purchased upon exercise hereof. (The Company shall have the right to require Optionee to confirm such fact in writing as a condition to receipt of such financial information). Acceptance of the Option shall constitute an agreement by Optionee to hold all such financial information as confidential and not to disclose such financial information to any third party other than Optionee’s family members, legal counsel and financial advisors, all of whom shall be advised of the confidential nature of such information. 

 
	
		
	10.
	Issue, Transfer Taxes and Other Expenses. The Company shall pay any and all original issue and stock transfer taxes that may be imposed on the issuance or sale of Shares acquired pursuant to the exercise of the Option, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith. 

 
	
		
	11.
	Payment of Income Taxes. The Company or any applicable subsidiary may deduct and withhold from the wages, salary, bonus and other income paid by the Company or such subsidiary to Optionee the requisite tax upon the amount of taxable income, if any, recognized by Optionee in connection with the exercise of the Option or the sale of Common Stock issued upon the exercise of the Option, all as may be required from time to time under any federal or state tax laws and regulations. This withholding of tax shall be made from the Company’s or such subsidiary’s concurrent or next payment of wages, salary, bonus or other income to Optionee or by payment to the Company or such subsidiary by Optionee of the required withholding tax, as the Board may determine. 

 
	
		
	12.
	Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of personal service, (ii) on the third business day after mailing, if the document is mailed by registered mail, (iii) one day after being sent by professional or overnight courier or messenger service guaranteeing one-day delivery, with receipt confirmed by the courier, or (iv) on the date of transmission if sent by facsimile or other means of electronic transmission, with receipt confirmed. Any such notice shall be delivered or addressed (x) to Optionee at the address set forth below Optionee’s signature to this Agreement or at the most recent address specified by Optionee through written notice under this provision and (y) to the Company at the Company’s principal executive office. Failure to conform to the requirements of this Section shall not defeat the effectiveness of notice actually received by the addressee. 

 
	
		
	13.
	Option Subject to Plan. The Option is subject to and shall be governed by the terms of the Plan, a copy of which is attached hereto. Optionee acknowledges receipt of a copy of the Plan and represents that Optionee is familiar with the terms and provisions thereof. Optionee agrees to accept as binding, conclusive and final all decisions or interpretations of the Board (or any committee of the Board to which administration of the Plan may be delegated) upon any questions arising under the Plan. 

 

3

	
		
	14.
	Rights as a Stockholder. Neither Optionee nor any legal representative, heir or legatee of Optionee shall have any rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a stock certificate to Optionee or such representative, heir or legatee for such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Sections 12 and 13 of the Plan. 

 
	
		
	15.
	No Rights as an Employee. Nothing contained in this Agreement or in the Plan shall confer on Optionee any right to remain in the employ of the Company or any subsidiary or shall limit the ability of the Company or any subsidiary to terminate, with or without cause, in its sole discretion, the employment of Optionee. The amount of any compensation deemed to be received by 

	 
	Optionee as a result of the exercise of the Option or the sale of any shares of Common Stock acquired upon such exercise shall not constitute “earnings” for the purpose of determining any other benefits to which Optionee may be entitled, including, without limitation, benefits under any pension, profit-sharing, life insurance, or salary continuation plan which may be in existence at any time.

 
	
		
	16.
	Waiver. Optionee agrees that the Option granted hereunder represents Optionee’s only right to purchase securities of the Company as of the date hereof, and supersedes any prior promises, understandings or agreements to grant any such right to Optionee or to sell any security of the Company to Optionee at any time prior to the date hereof. By execution hereof, the Optionee hereby confirms that, except for this Option, Optionee has no other rights of any kind whatsoever to acquire securities of the Company. 

 
	
		
	17.
	Arbitration of Disputes. Any dispute or controversy concerning the Option or otherwise with respect to the rights of Optionee under this Agreement, including a dispute pertaining to the validity of this Section 16, shall be resolved through binding arbitration before a single arbitrator in Orange County, California in accordance with the Commercial Rules of Arbitration of the American Arbitration Association then in effect. The award of the arbitrator may be enforced in any court of competent jurisdiction. Each party shall bear such party’s own legal fees and other costs of such arbitration proceedings, and the parties shall each pay one-half of the costs of the arbitrator and of the American Arbitration Association. The arbitrator shall have no authority to require either party to pay the attorneys’ fees or costs of the other party as part of the arbitration award. 

 
	
		
	18.
	Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. 

4

 
RESTRICTED STOCK PURCHASE AGREEMENT 
This RESTRICTED STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of this              day of                     , 200        , by and between AutoGenomics, Inc., a California corporation (the “Company”), and the undersigned optionee of the Company (“Optionee”). 
R E C I T A L S 
A. Optionee has been granted an option (the “Option”) under the Company’s 2000 Equity Incentive Plan (the “Plan”) to purchase              shares (the “Shares”) of the voting common stock of the Company (the “Common Stock”) pursuant to the terms of that certain option agreement dated as of                      by and between the Company and Optionee (the “Option Agreement”). As of the date hereof,             Shares are fully vested and the remaining                  Shares will vest annually in equal installments of                  Shares (to the extent not yet vested, such unvested Shares are “Restricted Shares”, as such term is more fully defined in the Option Agreement). 
B. Optionee desires to exercise the Option in accordance with the terms of the Option Agreement. 
C. Pursuant to the terms of the Option, Optionee agreed to execute additional documents, including this Agreement, in order to purchase the Shares and agreed that the Shares would be subject to certain rights and restrictions as provided herein. 
A G R E E M E N T 
In consideration of the foregoing recitals and the mutual covenants and conditions contained herein, the parties, intending to be legally bound, agree as follows: 
1. Payment of Purchase Price; Delivery of Stock Certificates. The Company hereby sells to Optionee the Shares at a purchase price of $             per share for an aggregate purchase price of $            (the “Purchase Price”). Upon the execution of this Agreement, Optionee shall pay the Purchase Price to the Company in cash, by wire transfer of funds or by certified or cashier’s check or by any other form of lawful consideration approved by the Board of Directors of the Company (the “Board”). Upon the Company’s receipt of payment of the Purchase Price from Optionee, the Company shall issue a stock certificate or certificates representing the Shares registered in Optionee’s name. To facilitate compliance with and enforcement of this Agreement, such stock certificate or certificates shall be delivered to and held by the Secretary of the Company and Optionee shall, concurrently with the execution hereof, deliver to the Secretary of the Company two undated stock powers executed in blank. The stock certificates shall be legended in accordance with Section 12 below, and shall be subject to the rights and restrictions as specifically set forth in this Agreement. 

2. Rights and Restrictions with Respect to the Shares. The Shares shall be subject, in the manner and under the circumstances set forth herein, to certain rights, limitations and conditions. No transfer or attempted transfer of any interest in the Shares shall be effective for any purpose, or confer on any transferee thereof, any rights whatsoever, unless made in compliance with the terms and conditions of this Agreement. Restricted Shares may not be transferred under any circumstances until such time as such Restricted Shares vest and cease to be Restricted Shares. Restricted Shares shall cease any reverse vesting (as such term is defined in the Option Agreement) upon termination of Optionee’s status as an employee, director, consultant or advisor to the Company. 
3. Repurchase Right Upon Termination of Service. 
(a) Termination for Cause. Upon the termination of Optionee’s service with the Company for Cause (as such term is defined below), the Company shall have the right and option, but not the obligation, exercisable for a period of 90 days after the later of (i) the effective date of such termination and (ii), if any Shares are issued after the date of such termination upon a permitted exercise of the Option in accordance with the terms of the Option Agreement, the date of such post-termination permitted exercise, to repurchase any or all of the 

1

Shares for a price equal to the purchase price paid for the Shares to be repurchased. The repurchase rights provided in this Section 3(a) are freely assignable by the Company and may be exercised at any time during such 90-day period by delivering to Optionee a written notice of repurchase together with a corporate check in the amount of the purchase price for the Shares to be repurchased. Upon tendering such purchase price, the Shares so purchased shall cease to be outstanding for all purposes. Optionee hereby authorizes and instructs the Secretary of the Company to complete one or more of the stock powers delivered concurrently herewith and to deliver such stock power to the Company together with one or more of the stock certificates delivered herewith in order to effect any repurchase pursuant to this Section 3(a). As used in this Section 3, termination of service for “Cause” shall mean the termination of Optionee’s service upon (A) a determination by the Board that Optionee has intentionally engaged in an act of fraud, dishonesty or other intentional misconduct which has materially harmed the Company or its reputation, (B) a determination by the Board that Optionee has intentionally and materially failed or refused to perform duties reasonably assigned to Optionee which failure or refusal has not been cured within thirty days after written notice to Optionee from the Company specifying the nature of such failure or refusal and of the Company’s intention to terminate Optionee for Cause if such failure or refusal is not cured within such thirty day period, or (C) Optionee’s conviction of a felony or misdemeanor involving intentional conduct involving moral turpitude or which the Board has determined materially harms the Company or its reputation (excluding traffic violations of all kinds). The Company’s repurchase rights set forth in this Section 3(a) shall terminate upon the first to occur of (i) the written agreement of the Company and Optionee and (ii) the consummation by the Company of the first sale of Common Stock in a bona fide, firm commitment underwriting pursuant to a registration statement declared effective under the Act; provided, however, that no such termination pursuant to such a public offering will be effective with respect to any Restricted Shares until such time as such Restricted Shares vest and cease to be Restricted Shares. 
 
(b) Termination Other Than for Cause. Upon the termination of Optionee’s service with the Company for any reason other than for Cause (including termination upon death or disability, resignation by Optionee or termination by the Company without Cause), the Company shall have the right and option, but not the obligation, which right shall be exercisable for a period of 90 days after the later of (i) the effective date of such termination and (ii), if any Shares are issued after the date of such termination upon a permitted exercise of the Option in accordance with the terms of the Option Agreement, the date of such post-termination permitted exercise, to repurchase any or all of the Restricted Shares then held by Optionee for a price equal to the purchase price paid for such Restricted Shares being repurchased. The repurchase rights provided in this Section 3(b) are freely assignable by the Company and may be exercised at any time during such 90-day period by delivering to Optionee a written notice of repurchase together with a corporate check in the amount of the purchase price for the Restricted Shares to be repurchased. Upon tendering such purchase price, the Restricted Shares so purchased shall cease to be outstanding for all purposes. Optionee hereby authorizes and instructs the Secretary of the Company to complete one or more of the stock powers delivered concurrently herewith and to deliver such stock power to the Company together with one or more of the stock certificates delivered herewith in order to effect any repurchase pursuant to this Section 3(b). 
4. Right of First Offer in Favor of the Company. If, at any time, Optionee desires to sell all or any portion of the Shares that do not constitute Restricted Shares (Restricted Shares may not be sold under any circumstances), Optionee shall deliver a written notice (the “First Offer Notice”) to the Company setting forth the terms on which Optionee would be willing to sell such Shares and shall therein offer to sell such Shares (the “Offered Shares”) to the Company on the terms set forth in the First Offer Notice. The First Offer Notice shall include at least the number of Offered Shares, the price at which the Offered Shares are being offered for sale and any other material terms and conditions for the purchase of the Offered Shares. For a period of 30 days following receipt of the First Offer Notice, the Company shall have the right and option, but not the obligation, to purchase any or all of the Offered Shares in the same manner and on the same terms and conditions as set forth in the First Offer Notice. In the event the Company elects to purchase any of the Offered Shares, the Company shall give written notice to Optionee of the Company’s election within 30 days of receipt of the Offer Notice indicating the number of Offered Shares the Company is electing to purchase, and shall consummate the purchase of such Offered Shares within 30 days of such notice of election upon the terms set forth in the First Offer Notice. In the event the Company does not respond to the First Offer Notice within such 30-day period, the Company shall be deemed to have declined to exercise its 

2

rights under this Section 4. In the event the Company does not purchase all of the Offered Shares, Optionee may, subject to the provisions of Section 7 below, sell the Offered Shares which are not purchased by the Company to any third party on terms no more favorable to such third party than the terms set forth in the First Offer Notice; provided, however, that if such sale is not consummated within 90 days of the date the Company exercises, declines to exercise or is deemed to have declined to exercise its rights under this Section 4, then the Offered Shares shall again be subject to all of the restrictions of this Section 4. 
5. Right of First Refusal in Favor of the Company. If Optionee receives a Bona Fide Third Party Offer (as such term is defined below) to purchase all or any portion of the Shares that do not constitute Restricted Shares (Restricted Shares may not be sold under any circumstances), regardless of whether such Bona Fide Third Party Offer is unsolicited or is obtained as a result of Optionee’s efforts following compliance with Section 4 above, and Optionee desires to accept such Bona Fide Third Party Offer, Optionee shall, within 30 days of the receipt thereof, deliver a written notice (the “Right of First Refusal Notice”) to the Company setting forth the terms of the Bona Fide Third Party Offer and shall therein offer to sell such Shares (the “Right of First Refusal Shares”) to the Company on the terms set forth in the Bona Fide Third Party Offer. As used herein, “Bona Fide Third Party Offer” shall mean an arms-length offer in writing by a third party to Optionee which shall include at least the following: (i) the third party’s expressed offer to purchase the Right of First Refusal Shares; (ii) the price per share to purchase the Right of First Refusal Shares; and (iii) the method of payment and other terms and conditions for the purchase of the Right of First Refusal Shares. For a period of 30 days following receipt of the Right of First Refusal Notice, the Company shall have the right and option, but not the obligation, to purchase any or all of the Right of First Refusal Shares in the same manner and on the same terms and conditions as set forth in the Bona Fide Third Party Offer. In the event the Company elects to purchase any of the Right of First Refusal Shares, the Company shall give written notice to Optionee of the Company’s election within 30 days of receipt of the Right of First Refusal Notice indicating the number of Right of First Refusal Shares the Company is electing to purchase, and shall consummate the purchase of such Right of First Refusal Shares within 30 days of such notice of election upon the terms set forth in the Right of First Refusal Notice. In the event the Company does not respond to the Right of First Refusal Notice within such 30-day period, the Company shall be deemed to have declined to exercise its rights under this Section 5. In the event the Company does not purchase all of the Right of First Refusal Shares, Optionee may sell the Right of First Refusal Shares which are not purchased by the Company to the third party in accordance with the terms set forth in the Bona Fide Third Party Offer; provided, however, that if the proposed transaction is not consummated within 30 days of the date the Company exercises, declines to exercise or is deemed to have declined to exercise its rights hereunder, then the Right of First Refusal Shares shall again be subject to all of the restrictions of this Section 5. 
6. Permitted Transfers. The restrictions of Sections 4 and 5 shall not apply to (i) a transfer of any Shares by Optionee either during Optionee’s lifetime or on death by will or intestacy or by gift, to Optionee’s ancestors, descendants, or spouse or to a trust, partnership or other legal entity for the benefit of any such person or persons, provided, in each such case the transferee or donee shall receive and hold such Shares subject to this Agreement and there shall be no further transfer of such Shares except in accordance with this Agreement, (ii) the proposed sale by Optionee of any Shares to the public pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Act”), or (iii) the proposed sale by Optionee of any Shares in any transaction or series of transactions in which ownership of all or substantially all of the outstanding capital stock of the Company is being transferred; provided, however, that Restricted Shares may not be transferred under any circumstances. 
7. No Sales to Competitors. The provisions of Section 4 and 5 notwithstanding, Optionee may not offer the Shares for sale to, nor entertain any offer to purchase any Shares from, any person, corporation or other entity which is engaged in any business which competes with or provides services similar to those provided by the Company. 

8. Stock Dividends, Stock Splits and Recapitalizations. If, from time to time during the term of this Agreement, there is any stock dividend, stock split, recapitalization or other change in the character or amount of any of the outstanding shares of Common Stock, then any and all new, substituted or additional securities to which Optionee is entitled by reason of Optionee’s ownership of the Shares, shall be immediately subject to the terms of this Agreement and be deemed “Shares” for all purposes of this Agreement with the same force and effect as the original Shares from time to time subject to this Agreement. 

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9. Market Stand-Off. Optionee agrees that, during the period specified by the Company and any underwriter (if an underwritten offering) of the Common Stock following the effective date of a registration statement of the Company filed under the Act, Optionee shall not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any of the Shares during such period. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Shares until the end of such period. Purchaser further agrees to execute a separate lock-up agreement for the benefit of any underwriter consistent with Purchaser’s obligations under this Section 10. 
10. Representations of Optionee. Optionee represents and warrants to the Company as follows: 
(a) Optionee has sufficient knowledge of the business of the Company and has had an opportunity to discuss with representatives of the Company the conditions of and prospects for the continued operation and financing of the Company and has been provided access to all available information requested by Optionee so as to have the capacity to evaluate the relative merits and risks of purchasing the Shares. 
(b) Optionee is purchasing the Shares for Optionee’s own account for investment purposes and not for the account of any other person or entity and not with a view to or for sale in connection with any distribution of all or any part of the Shares. 
(c) Optionee acknowledges and understands that the Option and the Shares have not been registered under the Act, or qualified under any applicable state securities laws or regulations and that the Shares are being offered in reliance upon exemptions from the registration requirements of the Act and such laws and regulations and that, as such, the Shares may not be resold without registration under the Act and applicable state securities laws or an applicable exemption thereto. Optionee acknowledges that the certificate or certificates evidencing the Shares will bear a legend indicating that the Shares are subject to restrictions on resale under the Act and applicable state securities laws and regulations. 

11. Legends. Each certificate or certificates representing the Shares subject to this Agreement shall have endorsed upon them a legend substantially as follows: 
“THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND REPURCHASE RIGHTS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THAT CERTAIN RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE ORIGINAL PURCHASER AND THE ISSUER, A COPY OF WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE ISSUER.” 
“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED EXCEPT IN COMPLIANCE WITH SUCH ACT AND ALL APPLICABLE STATE SECURITIES LAWS.” 
12. Severability. If any provision of this Agreement, or the application of such provision to any person or circumstance, shall be judicially declared to be invalid, unenforceable, void or voidable, such decision will not have the effect of invalidating, voiding or rendering voidable the remainder of this Agreement or affect the application of such provision to other persons or circumstances or in other jurisdictions, and the parties agree that the provision of this Agreement so held to be invalid, unenforceable, void or voidable will be deemed to have been stricken (except as set forth in the following sentence of this Section) and the remainder of this Agreement will have the same force and effect as if such provision had never been included. In the event that any provision of this Agreement, or the application of such provision to any person or circumstance, is judicially declared to be invalid, unenforceable, void or voidable by reason of being unreasonably broad in scope or by reason of extending for an unreasonably long period of time, then such provision or application shall be reduced and reformed by such court to a scope or time period which such court shall deem reasonable. 
13. Further Assurances. The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement. 

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14. Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of personal service, (ii) on the third business day after mailing, if the document is mailed by registered mail, (iii) one day after being sent by professional or overnight courier or messenger service guaranteeing one-day delivery, with receipt conformed by the courier, or (iv) on the date of transmission if sent by telecopy or other means of electronic transmission, with receipt confirmed. Any such notice shall be delivered or addressed (x) to Optionee at the address set forth below Optionee’s signature to this Agreement or at the most recent address specified by Optionee through written notice under this provision and (y) to the Company at the Company’s principal executive office. Failure to conform to the requirements of this Section shall not defeat the effectiveness of notice actually received by the addressee. 
15. Entire Agreement. This Agreement, together with the Option and the Plan constitute the entire agreement between the parties hereto with respect to the subject matter of this Agreement and supersede all prior agreements, understandings and discussions, whether written or oral, with respect thereto. 

16. Amendment. This Agreement may only be amended by both the written agreement of the Company and Optionee. 
17. Successors and Assigns. Except as otherwise expressly provided herein, the terms of this Agreement shall be binding upon and shall inure to the benefit of the heirs, successors and assigns of the parties and their heirs, successors and assigns. 
18. Governing Law. This Agreement shall be construed in accordance with and be governed by the laws of the State of California. 
19. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
20. Arbitration. Any dispute or controversy arising out of or relating to this Agreement or any breach or alleged breach of this Agreement, shall be resolved through binding arbitration before a single arbitrator in Orange County, California in accordance with the Commercial Rules of Arbitration of the American Arbitration Association then in effect. The award of the arbitrator may be enforced in any court of competent jurisdiction. Each party shall bear such party’s own legal fees and other costs of such arbitration proceedings, and the parties shall each pay one-half of the costs of the arbitrator and of the American Arbitration Association. The arbitrator shall have no authority to require either party to pay the attorneys’ fees or costs of the other party as part of the arbitration award. 
[ remainder of page intentionally left blank; signature page follows ] 

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

	AUTOGENOMICS, INC.
	 
	 

	 
	 
	 
	Print or Type Name of Optionee

	By:
	 
	 
	 

	Title:
	 
	 
	Signature of Optionee

	 
	 
	 
	 

	 
	 
	 
	Optionee's Address:

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	Facsimile No.:
	 

	 
	 
	 
	Phone No.:
	 

	 
	 
	 
	Email.:
	 

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AutoGenomics, Inc. 
2000 INCENTIVE STOCK OPTION AGREEMENT 
A G R E E M E N T 
This Option is intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, and will be interpreted accordingly. 
 
	
		
	1.
	Vesting Provisions. Your Options vest (i.e. become exercisable) over a four year period in equal annual installments of 25% of the total number of Shares on each anniversary of the Date of Grant indicated on the cover letter to this Agreement, such that from and after the fourth anniversary of the Date of Grant, the Option shall be vested as to all of the Shares and fully exercisable. These installments shall be cumulative, such that Optionee may exercise the Option as to any or all of the Shares covered by any installment at any time or times after such installment vests and prior to termination of the Option. No additional shares will vest after your employment has terminated for any reason. Optionee may, under certain circumstances and subject to certain conditions described below, exercise all or any part of this Option prior to the date on which it vests. 

 
	
		
	2.
	Exercise and Delivery of Shares. The Option may be exercised only before it expires, and shall be exercisable at any time prior to termination by delivering (i) written notice to the Company specifying the number of full Shares to be purchased, (ii) payment of the Exercise Price per share in cash, by check, or in such other form of lawful consideration as the Board may approve, and (iii) an executed Restricted Stock Purchase Agreement with two executed, undated stock powers as provided in the Restricted Stock Purchase Agreement. At any time prior to the termination of Optionee’s employment with the Company, the Option may be exercised as to all or any portion of the Option that has not vested (an “early exercise”); provided, however, that the Shares purchased upon an early exercise shall be deemed “Restricted Shares” and shall be subject to the Company’s repurchase right at cost as set forth in Section 9 below. The Shares that initially constitute Restricted Shares as the result of an early exercise shall cease to be Restricted Shares at the same rate as, and only to the extent that, that portion of this Option that was exercised to purchase such Restricted Shares would have vested (sometimes referred to herein as “reverse vesting”). For example, if this Option has vested as to 25% of the Shares covered hereby and the Optionee makes an early exercise of this Option in full, then 75% of the Shares covered hereby will be deemed Restricted Shares and, such Restricted Shares will cease to be Restricted Shares (i.e., reverse vest) as provided in the cover page hereto and Section 1 above. To the extent the Option is exercised in part but not in full, (i) an exercise shall be deemed to represent an election to exercise the Option to the extent vested and any additional Shares shall be deemed Restricted Shares and (ii) the Restricted Shares will be deemed to reverse vest until all of such shares have ceased to be Restricted Shares before the remaining unexercised portion of the Option shall continue to vest. Except as otherwise expressly provided herein, vesting of the Option (and reverse vesting of any Restricted Shares) shall cease upon the termination of Optionee’s employment with the Company for any reason. 

 
	
		
	3.
	Termination. This Agreement and the Option shall terminate upon the first to occur of the following: (i) ten years from the date of this Agreement; (ii) the termination of the Option as provided in Sections 14 and 15 of the Plan; (iii) the termination of Optionee’s employment with the Company for Cause (as such term is defined in the Restricted Stock Purchase Agreement); and (iv) three months after the termination of Optionee’s employment with the Company, in the event such Optionee’s employment is terminated by such Optionee or by the Company for other than Cause (unless Optionee’s employment terminates due to retirement, death or disability or Optionee dies or becomes disabled within three months of the date on which Optionee’s employment terminates (other than by the Company for Cause), in which case this Agreement and the Option shall terminate six months after Optionee’s employment terminates). A leave of absence from employment taken with the consent of the Company shall not be considered a termination of employment for purposes of this Agreement. 

 

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	4.
	Nontransferability of Option. The Option may not be assigned or transferred, except by will, by the laws of descent and distribution, or by instrument to an inter vivos or testamentary trust in which the Option is to be passed to one or more beneficiaries of Optionee upon the death of Optionee. During the lifetime of Optionee, the Option shall be exercisable only by Optionee. After the death of Optionee, the Option may be exercised prior to its termination only by Optionee’s legal representative, legatee or a person who acquired the right to exercise the Option by reason of the death of Optionee. Any attempt to assign or transfer the Option contrary to the provisions hereof shall be null and void. 

 
	
		
	5.
	Adjustments. Pursuant to Sections 12 and 13 of the Plan, the number or kind of shares issuable upon exercise of the Option and/or the Exercise Price is subject to adjustment in the event of certain stock splits, stock dividends, recapitalizations, reorganizations or similar capital adjustments and in connection with certain mergers, consolidations and asset sales. 

 
	
		
	6.
	Compliance With Securities Law. Optionee agrees to exercise the Option in compliance with all applicable federal and state securities laws and agrees to cooperate with the Company in taking any and all action which may be deemed necessary or desirable to ensure such compliance. 

 
	
		
	7.
	Tax Consequences of Exercising this Option. The Option is intended to constitute an Incentive Stock Option under section 422 of the Code. Under the Code, upon exercise of the Option, the difference between the exercise price of the Option and the fair market value of the Shares purchased at the time of such exercise (the “Spread”) is a tax preference item for purposes of computing your alternative minimum tax for the taxable year in which the Option is exercised. To the extent that Optionee elects to make an early exercise of the Option, however, Section 83(a) of the Code provides that the Spread with respect to any Restricted Shares (i.e., shares that are subject to the Company’s repurchase right at cost as provided below) will not constitute a tax preference item until such time as such shares vest and cease to be Restricted Shares subject to the Company’s repurchase right at cost. (Under the Code, such a repurchase right is deemed to constitute a “substantial risk of forfeiture” and the Code delays the recognition of the tax preference item until there is no substantial risk of forfeiture.) Individuals may, however, elect to recognize the entire tax preference item at the time of such early exercise, rather than when and as the Company’s repurchase right expires, by filing an election under Section 83(b) of the Code (a “Section 83(b) Election”) with the Internal Revenue Service within 30 days from the date of such early exercise. The making of an 83(b) Election may subject the individual making such election to additional tax pursuant to the alternative minimum tax provisions of the Code in the year of exercise, but will eliminate any tax preference item related to such exercise in computing such individual’s alternative minimum tax in future years. Depending on the Spread at the time of exercise and the Spread at the time the Restricted Shares vest, this could reduce (but could, under certain circumstances, also increase) the amount of tax that such individual would ultimately need to pay in connection with the exercise of the Option. The decision to make an 83(b) election is a complex one and should be reviewed carefully with a tax advisor. Optionee acknowledges, agrees and understands that (i) Optionee shall determine whether or not to make a Section 83(b) Election, (ii) Optionee shall be responsible for filing with the Internal Revenue Service the form necessary to make a Section 83(b) Election if Optionee chooses to make a Section 83(b) Election, and (iii) if Optionee makes a Section 83(b) Election, a copy of such election form must also be (x) filed with Optionee’s federal income tax return for the tax year in which the early exercise is made and (y) provided to the Chief Financial Officer of the Company. Optionee understands that the failure to file such a Section 83(b) election in a timely manner may result in adverse tax consequences to Optionee. 

 

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	8.
	Company’s Repurchase Right at Cost. During the 90 day period following Optionee’s termination of employment with the Company for any reason whatsoever (or in the case of Shares issued upon exercise of this Option in accordance with its terms after the date of termination, within 90 days after the date of such exercise), the Company shall have the right to repurchase from Optionee any or all of the Shares that constitute Restricted Shares as of the date of such termination (or subsequent exercise, as applicable) for an amount equal to the original purchase price therefor, as is more fully set forth in the Restricted Stock Purchase Agreement. 

 
	
		
	9.
	Delivery of Financial Information. The Company shall provide financial statements for the Company at least annually to Optionee so long as the Option remains exercisable or, to the extent Optionee has exercised the Option, so long as Optionee continues to hold Shares purchased upon exercise hereof. (The Company shall have the right to require Optionee to confirm such fact in writing as a condition to receipt of such financial information). Acceptance of the Option shall constitute an agreement by Optionee to hold all such financial information as confidential and not to disclose such financial information to any third party other than Optionee’s family members, legal counsel and financial advisors, all of whom shall be advised of the confidential nature of such information. 

 
	
		
	10.
	Issue, Transfer Taxes and Other Expenses. The Company shall pay any and all original issue and stock transfer taxes that may be imposed on the issuance or sale of Shares acquired pursuant to the exercise of the Option, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith. 

 
	
		
	11.
	Payment of Income Taxes. The Company or any applicable subsidiary may deduct and withhold from the wages, salary, bonus and other income paid by the Company or such subsidiary to Optionee the requisite tax upon the amount of taxable income, if any, recognized by Optionee in connection with the exercise of the Option or the sale of Common Stock issued upon the exercise of the Option, all as may be required from time to time under any federal or state tax laws and regulations. This withholding of tax shall be made from the Company’s or such subsidiary’s concurrent or next payment of wages, salary, bonus or other income to Optionee or by payment to the Company or such subsidiary by Optionee of the required withholding tax, as the Board may determine. 

 
	
		
	12.
	Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of personal service, (ii) on the third business day after mailing, if the document is mailed by registered mail, (iii) one day after being sent by professional or overnight courier or messenger service guaranteeing one-day delivery, with receipt confirmed by the courier, or (iv) on the date of transmission if sent by facsimile or other means of electronic transmission, with receipt confirmed. Any such notice shall be delivered or addressed (x) to Optionee at the address set forth below Optionee’s signature to this Agreement or at the most recent address specified by Optionee through written notice under this provision and (y) to the Company at the Company’s principal executive office. Failure to conform to the requirements of this Section shall not defeat the effectiveness of notice actually received by the addressee. 

 
	
		
	13.
	Option Subject to Plan. The Option is subject to and shall be governed by the terms of the Plan, a copy of which is attached hereto. Optionee acknowledges receipt of a copy of the Plan and represents that Optionee is familiar with the terms and provisions thereof. Optionee agrees to accept as binding, conclusive and final all decisions or interpretations of the Board (or any committee of the Board to which administration of the Plan may be delegated) upon any questions arising under the Plan. 

 

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	14.
	Rights as a Stockholder. Neither Optionee nor any legal representative, heir or legatee of Optionee shall have any rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a stock certificate to Optionee or such representative, heir or legatee for such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Sections 12 and 13 of the Plan. 

 
	
		
	15.
	No Rights as an Employee. Nothing contained in this Agreement or in the Plan shall confer on Optionee any right to remain in the employ of the Company or any subsidiary or shall limit the ability of the Company or any subsidiary to terminate, with or without cause, in its sole discretion, the employment of Optionee. The amount of any compensation deemed to be received by 

	 
	Optionee as a result of the exercise of the Option or the sale of any shares of Common Stock acquired upon such exercise shall not constitute “earnings” for the purpose of determining any other benefits to which Optionee may be entitled, including, without limitation, benefits under any pension, profit-sharing, life insurance, or salary continuation plan which may be in existence at any time.

 
	
		
	16.
	Arbitration of Disputes. Any dispute or controversy concerning the Option or otherwise with respect to the rights of Optionee under this Agreement, including a dispute pertaining to the validity of this Section 16, shall be resolved through binding arbitration before a single arbitrator in Orange County, California in accordance with the Commercial Rules of Arbitration of the American Arbitration Association then in effect. The award of the arbitrator may be enforced in any court of competent jurisdiction. Each party shall bear such party’s own legal fees and other costs of such arbitration proceedings, and the parties shall each pay one-half of the costs of the arbitrator and of the American Arbitration Association. The arbitrator shall have no authority to require either party to pay the attorneys’ fees or costs of the other party as part of the arbitration award. 

 
	
		
	17.
	Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. 

 

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NONQUALIFIED STOCK OPTION AGREEMENT 
This Nonqualified Stock Option Agreement (this “Agreement”) is made and entered into as of [DATE] (the “Date of Grant”), by and between AutoGenomics, Inc., a California corporation (the “Company”), and [NAME] (“Optionee”). 
R E C I T A L S 
A. The Board of Directors (the “Board”) has adopted and approved the 2000 Equity Incentive Plan of the Company (the “Plan”), a copy of which is attached hereto as Exhibit I, for the purpose of granting stock options and the right to purchase common stock of the Company to employees and directors of, and advisors and consultants to, the Company. 
B. The Board has authorized the granting of a stock option under the Plan to Optionee on the terms and subject to the conditions of this Agreement. 
A G R E E M E N T 
In consideration of the foregoing recitals and of the mutual covenants contained herein, the parties, intending to be legally bound, agree as follows: 
1. Grant. The Company hereby grants to Optionee an option (the “Option”) to purchase up to a maximum of ________ shares (the “Shares”) of the voting common stock of the Company (“Common Stock”), on the terms and subject to the conditions of this Agreement and the Plan. The Option is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 
2. Exercise Price. The price at which Optionee shall be entitled to purchase the Shares is $_____ per share (the “Exercise Price”). 
3. Vesting Provisions. The Option shall be deemed vested, (i.e., exercisable) in one installment of ______ Shares (100% of the total number of Shares) on the anniversary of the Date of Grant, such that, from and after the first anniversary of the Date of Grant, the Option shall be vested as to all of the Shares and fully exercisable. 
4. Exercise and Delivery of Shares. The Option may be exercised only before it expires, and shall be exercisable at any time prior to termination by delivering (i) written notice to the Company specifying the number of full Shares to be purchased, (ii) payment of the Exercise Price in cash, by check, or in such other form of lawful consideration as the Board may approve, and (iii) an executed Restricted Stock Purchase Agreement in the form attached hereto as Exhibit II together with two executed, undated stock powers as provided in the Restricted Stock Purchase Agreement. At any time prior to the termination of Optionee’s status as an advisor to the Company, the Option may be exercised as to all or any portion of the Option that has not vested (an “early exercise”); provided, however, that the Shares purchased upon an early exercise shall be deemed “Restricted Shares” and shall be subject to the Company’s repurchase right at cost as set forth in Section 10 below. The Shares that initially constitute Restricted Shares as the result of an early exercise shall cease to be Restricted Shares at the same rate as, and only to the extent that, that portion of this Option that was exercised to purchase such Restricted Shares would have vested (sometimes referred to herein as “reverse vesting”). For example, if this Option has vested as to 25% of the Shares covered hereby and the Optionee makes an early exercise of this Option in full, then 75% of the Shares covered hereby will be deemed Restricted Shares and, such Restricted Shares will cease to be Restricted Shares (i.e., reverse vest) as provided in Section 3 above. To the extent the Option is exercised in part but not in full, (i) an exercise shall be deemed to represent an election to exercise the Option to the extent vested and any additional Shares shall be deemed Restricted Shares and (ii) the Restricted Shares will be deemed to reverse vest until all of such shares have ceased to be Restricted Shares before the remaining unexercised portion of the Option shall continue to vest as provided in Section 3 above. Except as otherwise expressly provided herein, vesting of the Option (and reverse vesting of any Restricted Shares) shall cease upon the termination of Optionee’s status as an advisor to the Company for any reason. 
5. Termination. This Agreement and the Option shall terminate upon the first to occur of the following: 

1

(a) Ten years from the date of this Agreement; 
(b) The termination of the Option as provided in Sections 13 and 14 of the Plan; 
(c) The termination of Optionee’s status as an advisor to the Company for Cause (as such term is defined in Section 3 of Exhibit II (the Restricted Stock Purchase Agreement) attached hereto); and 
(d) Three months after the termination of Optionee’s status as an advisor to the Company, in the event such status is terminated by Optionee or by the Company for other than Cause (unless such status terminates due to retirement, death or disability or Optionee dies or becomes disabled within three months of the date on which such status is terminated (other than by the Company for Cause), in which case this Agreement and the Option shall terminate six months after Optionee’s status as an advisor to the Company terminates). 
6. Nontransferability of Option. The Option may not be assigned or transferred, except by will, by the laws of descent and distribution, by instrument to an inter vivos or testamentary trust in which the Option is to be passed to one or more beneficiaries of Optionee upon the death of Optionee. During the lifetime of Optionee, the Option shall be exercisable only by Optionee. After the death of Optionee, the Option may be exercised prior to its termination only by Optionee’s legal representative, legatee or a person who acquired the right to exercise the Option by reason of the death of Optionee. Any attempt to assign or transfer the Option contrary to the provisions hereof shall be null and void. 
 
7. Adjustments. Pursuant to Sections 12 and 13 of the Plan, the number or kind of shares issuable upon exercise of the Option and/or the Exercise Price is subject to adjustment in the event of certain stock splits, stock dividends, recapitalizations, reorganizations or similar capital adjustments and in connection with certain mergers, consolidations and asset sales. 
8. Compliance With Securities Law. Optionee agrees to exercise the Option in compliance with all applicable federal and state securities laws and agrees to cooperate with the Company in taking any and all action which may be deemed necessary or desirable to ensure such compliance. 
9. Tax Consequences of Exercising this Option. This Option is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Code. Under the Code, upon exercise of the Option, the difference between the exercise price of the Option and the fair market value of the Shares purchased at the time of such exercise is taxable as ordinary income and is subject to applicable withholding taxes. To the extent that Optionee elects to make an early exercise of the Option, however, Section 83(a) of the Code provides that with respect to any Restricted Shares (i.e., shares that are subject to the Company’s repurchase right at cost as provided below), the recognition of ordinary income occurs at such time as such shares vest and cease to be Restricted Shares subject to the Company’s repurchase right at cost, such that the difference between the exercise price of the Option and the fair market value of the Shares at such time as such shares vest and cease to be Restricted Shares (the “Spread”) is taxable as ordinary income, subject to withholding taxes, as of the date such shares vest and cease to be Restricted Shares. (Under the Code, the Company’s repurchase right is deemed to constitute a “substantial risk of forfeiture” and the Code delays the recognition of the Spread until there is no substantial risk of forfeiture.) Individuals may elect to recognize the entire Spread at the time of such early exercise, rather than when and as the Company’s repurchase right expires, by filing an election under Section 83(b) of the Code (a “Section 83(b) Election”) with the Internal Revenue Service within 30 days from the date of such early exercise. The making of an 83(b) Election will subject the individual making such election to additional ordinary income tax in the year of such early exercise, but will eliminate any ordinary income taxes related to such early exercise in future years. Depending on the Spread at the time of exercise and the Spread at the time the Restricted Shares vest, this could reduce (but could, under certain circumstances, also increase) the amount of tax that such individual would ultimately need to pay in connection with the exercise of the Option. The decision to make an 83(b) election is a complex one and should be reviewed carefully with a tax advisor. Optionee acknowledges, agrees and understands that (i) Optionee shall determine whether or not to make a Section 83(b) Election, (ii) Optionee shall be responsible for timely filing with the Internal Revenue Service the form necessary to make a Section 83(b) Election if Optionee chooses to make a Section 83(b) Election, and (iii) if Optionee makes a Section 83(b) Election, a copy of such election form must also be (x) filed with Optionee’s federal income tax return for the tax year in which the early exercise is made and (y) provided to the Chief Financial Officer of the Company. Optionee understands that the failure to file such a Section 83(b) election in a timely manner may result in adverse tax consequences to Optionee. 

2

 
10. Company’s Repurchase Right at Cost. During the 90 day period following termination of Optionee’s status as an advisor to the Company for any reason whatsoever (or in the case of Shares issued upon exercise of this Option in accordance with its terms after the date of termination, within 90 days after the date of such exercise), the Company shall have the right to repurchase from Optionee any or all of the Shares that constitute Restricted Shares as of the date of such termination (or subsequent exercise, as applicable) for an amount equal to the original purchase price therefor, as is more fully set forth in Section 3 of Exhibit II (the Restricted Stock Purchase Agreement) attached hereto. 
11. Delivery of Financial Information. The Company shall provide financial statements for the Company at least annually to Optionee so long as the Option remains exercisable or, to the extent Optionee has exercised the Option, so long as Optionee continues to hold Shares purchased upon exercise hereof. (The Company shall have the right to require Optionee to confirm such fact in writing as a condition to receipt of such financial information). Acceptance of the Option shall constitute an agreement by Optionee to hold all such financial information as confidential and not to disclose such financial information to any third party other than Optionee’s family members, legal counsel and financial advisors, all of whom shall be advised of the confidential nature of such information. 
12. Issue, Transfer Taxes and Other Expenses. The Company shall pay any and all original issue and stock transfer taxes that may be imposed on the issuance or sale of Shares acquired pursuant to the exercise of the Option, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith. 
13. Payment of Income Taxes. The Company or any applicable subsidiary may deduct and withhold from the wages, salary, bonus and other income paid by the Company or such subsidiary to Optionee the requisite tax upon the amount of taxable income, if any, recognized by Optionee in connection with the exercise of the Option or the sale of Common Stock issued upon the exercise of the Option, all as may be required from time to time under any federal or state tax laws and regulations. This withholding of tax shall be made from the Company’s or such subsidiary’s concurrent or next payment of wages, salary, bonus or other income to Optionee or by payment to the Company or such subsidiary by Optionee of the required withholding tax, as the Board may determine. 
14. Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of personal service, (ii) on the third business day after mailing, if the document is mailed by registered mail, (iii) one day after being sent by professional or overnight courier or messenger service guaranteeing one-day delivery, with receipt confirmed by the courier, or (iv) on the date of transmission if sent by facsimile or other means of electronic transmission, with receipt confirmed. Any such notice shall be delivered or addressed (x) to Optionee at the address set forth below Optionee’s signature to this Agreement or at the most recent address specified by Optionee through written notice under this provision and (y) to the Company at the Company’s principal executive office. Failure to conform to the requirements of this Section shall not defeat the effectiveness of notice actually received by the addressee. 
 
15. Option Subject to Plan. The Option is subject to and shall be governed by the terms of the Plan, a copy of which is attached hereto. Optionee acknowledges receipt of a copy of the Plan and represents that Optionee is familiar with the terms and provisions thereof. Optionee agrees to accept as binding, conclusive and final all decisions or interpretations of the Board (or any committee of the Board to which administration of the Plan may be delegated) upon any questions arising under the Plan. 
16. Rights as a Stockholder. Neither Optionee nor any legal representative, heir or legatee of Optionee shall have any rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a stock certificate to Optionee or such representative, heir or legatee for such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Sections 12 and 13 of the Plan. 
17. No Rights to Existing Status. Nothing contained in this Agreement or in the Plan shall confer on Optionee any right to continue his or her existing status as an advisor to the Company or shall limit the ability of the Company or any subsidiary to terminate, with or without cause, in its sole discretion, Optionee’s status as an advisor to the Company. 

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18. Waiver. Optionee agrees that the Option granted hereunder represents Optionee’s only right to purchase securities of the Company as of the date hereof, and supersedes any prior promises, understandings or agreements to grant any such right to Optionee or to sell any security of the Company to Optionee at any time prior to the date hereof. By execution hereof, Optionee hereby confirms that, except for this Option, Optionee has no other rights of any kind whatsoever to acquire securities of the Company. 
19. Arbitration of Disputes. Any dispute or controversy concerning the Option or otherwise with respect to the rights of Optionee under this Agreement, including a dispute pertaining to the validity of this Section 16, shall be resolved through binding arbitration before a single arbitrator in San Diego County, California in accordance with the Commercial Rules of Arbitration of the American Arbitration Association then in effect. The award of the arbitrator may be enforced in any court of competent jurisdiction. Each party shall bear such party’s own legal fees and other costs of such arbitration proceedings, and the parties shall each pay one-half of the costs of the arbitrator and of the American Arbitration Association. The arbitrator shall have no authority to require either party to pay the attorneys’ fees or costs of the other party as part of the arbitration award. 
20. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. 
[ remainder of page intentionally left blank; signature page follows ] 

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IN WITNESS WHEREOF, the parties hereto have executed this Nonqualified Stock Option Agreement as of the day and year first above written. 
	
					
	THE "COMPANY"
	 
	"OPTIONEE"

	AUTOGENOMICS, INC.
	 
	 

	 
	 
	 
	 

	By:
	 
	 
	 

	 
	Fareed Kureshy
	 
	Signature of Optionee

	Title:
	President & CEO
	 
	 

	 
	 
	 
	 

	 
	 
	 
	Optionee's Address:

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	Facsimile No.:
	 

[ Signature Page for Nonqualified Stock Option Agreement for Qualified 
Participants Under 2000 Equity Incentive Plan of AutoGenomics, Inc. ] 
 

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NONQUALIFIED STOCK OPTION AGREEMENT 
This Nonqualified Stock Option Agreement (this “Agreement”) is made and entered into as of AWARD DATE, YEAR (the “Date of Grant”), by and between AutoGenomics, Inc., a California corporation (the “Company”), and NAME (“Optionee”). 
R E C I T A L S 
A. The Board of Directors (the “Board”) has adopted and approved the 2000 Equity Incentive Plan of the Company (the “Plan”), a copy of which is attached hereto as Exhibit I, for the purpose of granting stock options and the right to purchase common stock of the Company to employees and directors of, and advisors and consultants to, the Company. 
B. The Board has authorized the granting of a stock option under the Plan to Optionee on the terms and subject to the conditions of this Agreement. 
A G R E E M E N T 
In consideration of the foregoing recitals and of the mutual covenants contained herein, the parties, intending to be legally bound, agree as follows: 
1. Grant. The Company hereby grants to Optionee an option (the “Option”) to purchase up to a maximum of XX,XXX shares (the “Shares”) of the voting common stock of the Company (“Common Stock”), on the terms and subject to the conditions of this Agreement and the Plan. The Option is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 
2. Exercise Price. The price at which Optionee shall be entitled to purchase the Shares is $XX.XX per share (the “Exercise Price”). 
3. Vesting Provisions. The Option shall be deemed vested, (i.e., exercisable) in equal annual installments of X,XXX Shares (25% of the total number of Shares) each on an anniversary of the Date of Grant, such that, from and after the fourth anniversary of the Date of Grant, the Option shall be vested as to all of the Shares and fully exercisable. These installments shall be cumulative, such that Optionee may exercise the Option as to any or all of the Shares covered by any installment at any time or times after such installment vests and prior to termination of the Option. The foregoing notwithstanding, except to the extent the Option vests upon the termination of Optionee’s status as an advisor to the Company as provided above, the Option shall cease vesting upon the termination of Optionee’s status as an advisor to the Company for any reason. Optionee may, under certain circumstances and subject to certain conditions described below, exercise all or any part of this Option prior to the date on which it vests. 
 
4. Exercise and Delivery of Shares. The Option may be exercised only before it expires, and shall be exercisable at any time prior to termination by delivering (i) written notice to the Company specifying the number of full Shares to be purchased, (ii) payment of the Exercise Price in cash, by check, or in such other form of lawful consideration as the Board may approve, and (iii) an executed Restricted Stock Purchase Agreement in the form attached hereto as Exhibit II together with two executed, undated stock powers as provided in the Restricted Stock Purchase Agreement. At any time prior to the termination of Optionee’s status as an advisor to the Company, the Option may be exercised as to all or any portion of the Option that has not vested (an “early exercise”); provided, however, that the Shares purchased upon an early exercise shall be deemed “Restricted Shares” and shall be subject to the Company’s repurchase right at cost as set forth in Section 10 below. The Shares that initially constitute Restricted Shares as the result of an early exercise shall cease to be Restricted Shares at the same rate as, and only to the extent that, that portion of this Option that was exercised to purchase such Restricted Shares would have vested (sometimes referred to herein as “reverse vesting”). For example, if this Option has vested as to 25% of the Shares covered hereby and the Optionee makes an early exercise of this Option in full, then 75% of the Shares covered hereby will be deemed Restricted Shares and, such Restricted Shares will cease to be Restricted Shares (i.e., reverse vest) as provided in Section 3 above. To the extent the Option is exercised in part but not in full, (i) an exercise shall 

1

be deemed to represent an election to exercise the Option to the extent vested and any additional Shares shall be deemed Restricted Shares and (ii) the Restricted Shares will be deemed to reverse vest until all of such shares have ceased to be Restricted Shares before the remaining unexercised portion of the Option shall continue to vest as provided in Section 3 above. Except as otherwise expressly provided herein, vesting of the Option (and reverse vesting of any Restricted Shares) shall cease upon the termination of Optionee’s status as an advisor to the Company for any reason. 
5. Termination. This Agreement and the Option shall terminate upon the first to occur of the following: 
(a) Ten years from the date of this Agreement; 
(b) The termination of the Option as provided in Sections 13 and 14 of the Plan; 
(c) The termination of Optionee’s status as an advisor to the Company for Cause (as such term is defined in Section 3 of Exhibit II (the Restricted Stock Purchase Agreement) attached hereto); and 
(d) Three months after the termination of Optionee’s status as an advisor to the Company, in the event such status is terminated by Optionee or by the Company for other than Cause (unless such status terminates due to retirement, death or disability or Optionee dies or becomes disabled within three months of the date on which such status is terminated (other than by the Company for Cause), in which case this Agreement and the Option shall terminate six months after Optionee’s status as an advisor to the Company terminates). 
 
6. Nontransferability of Option. The Option may not be assigned or transferred, except by will, by the laws of descent and distribution, by instrument to an inter vivos or testamentary trust in which the Option is to be passed to one or more beneficiaries of Optionee upon the death of Optionee. During the lifetime of Optionee, the Option shall be exercisable only by Optionee. After the death of Optionee, the Option may be exercised prior to its termination only by Optionee’s legal representative, legatee or a person who acquired the right to exercise the Option by reason of the death of Optionee. Any attempt to assign or transfer the Option contrary to the provisions hereof shall be null and void. 
7. Adjustments. Pursuant to Sections 12 and 13 of the Plan, the number or kind of shares issuable upon exercise of the Option and/or the Exercise Price is subject to adjustment in the event of certain stock splits, stock dividends, recapitalizations, reorganizations or similar capital adjustments and in connection with certain mergers, consolidations and asset sales. 
8. Compliance With Securities Law. Optionee agrees to exercise the Option in compliance with all applicable federal and state securities laws and agrees to cooperate with the Company in taking any and all action which may be deemed necessary or desirable to ensure such compliance. 
9. Tax Consequences of Exercising this Option. This Option is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Code. Under the Code, upon exercise of the Option, the difference between the exercise price of the Option and the fair market value of the Shares purchased at the time of such exercise is taxable as ordinary income and is subject to applicable withholding taxes. To the extent that Optionee elects to make an early exercise of the Option, however, Section 83(a) of the Code provides that with respect to any Restricted Shares (i.e., shares that are subject to the Company’s repurchase right at cost as provided below), the recognition of ordinary income occurs at such time as such shares vest and cease to be Restricted Shares subject to the Company’s repurchase right at cost, such that the difference between the exercise price of the Option and the fair market value of the Shares at such time as such shares vest and cease to be Restricted Shares (the “Spread”) is taxable as ordinary income, subject to withholding taxes, as of the date such shares vest and cease to be Restricted Shares. (Under the Code, the Company’s repurchase right is deemed to constitute a “substantial risk of forfeiture” and the Code delays the recognition of the Spread until there is no substantial risk of forfeiture.) Individuals may elect to recognize the entire Spread at the time of such early exercise, rather than when and as the Company’s repurchase right expires, by filing an election under Section 83(b) of the Code (a “Section 83(b) Election”) with the Internal Revenue Service within 30 days from the date of such early exercise. The making of an 83(b) Election will subject the individual making such election to additional ordinary income tax in the year of such early exercise, but will eliminate any ordinary income taxes related to such early exercise in future years. Depending on the Spread at the time of exercise and the Spread at the time the Restricted Shares vest, this could reduce (but could, under certain 

2

circumstances, also increase) the amount of tax that such individual would ultimately need to pay in connection with the exercise of the Option. The decision to make an 83(b) election is a complex one and should be reviewed carefully with a tax advisor. Optionee acknowledges, agrees and understands that (i) Optionee shall determine whether or not to make a Section 83(b) Election, (ii) Optionee shall be responsible for timely filing with the Internal Revenue Service the form necessary to make a Section 83(b) Election if Optionee chooses to make a 
 
Section 83(b) Election, and (iii) if Optionee makes a Section 83(b) Election, a copy of such election form must also be (x) filed with Optionee’s federal income tax return for the tax year in which the early exercise is made and (y) provided to the Chief Financial Officer of the Company. Optionee understands that the failure to file such a Section 83(b) election in a timely manner may result in adverse tax consequences to Optionee. 
10. Company’s Repurchase Right at Cost. During the 90 day period following termination of Optionee’s status as an advisor to the Company for any reason whatsoever (or in the case of Shares issued upon exercise of this Option in accordance with its terms after the date of termination, within 90 days after the date of such exercise), the Company shall have the right to repurchase from Optionee any or all of the Shares that constitute Restricted Shares as of the date of such termination (or subsequent exercise, as applicable) for an amount equal to the original purchase price therefor, as is more fully set forth in Section 3 of Exhibit II (the Restricted Stock Purchase Agreement) attached hereto. 
11. Delivery of Financial Information. The Company shall provide financial statements for the Company at least annually to Optionee so long as the Option remains exercisable or, to the extent Optionee has exercised the Option, so long as Optionee continues to hold Shares purchased upon exercise hereof. (The Company shall have the right to require Optionee to confirm such fact in writing as a condition to receipt of such financial information). Acceptance of the Option shall constitute an agreement by Optionee to hold all such financial information as confidential and not to disclose such financial information to any third party other than Optionee’s family members, legal counsel and financial advisors, all of whom shall be advised of the confidential nature of such information. 
12. Issue, Transfer Taxes and Other Expenses. The Company shall pay any and all original issue and stock transfer taxes that may be imposed on the issuance or sale of Shares acquired pursuant to the exercise of the Option, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith. 
13. Payment of Income Taxes. The Company or any applicable subsidiary may deduct and withhold from the wages, salary, bonus and other income paid by the Company or such subsidiary to Optionee the requisite tax upon the amount of taxable income, if any, recognized by Optionee in connection with the exercise of the Option or the sale of Common Stock issued upon the exercise of the Option, all as may be required from time to time under any federal or state tax laws and regulations. This withholding of tax shall be made from the Company’s or such subsidiary’s concurrent or next payment of wages, salary, bonus or other income to Optionee or by payment to the Company or such subsidiary by Optionee of the required withholding tax, as the Board may determine. 
14. Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of personal service, (ii) on the third business day after mailing, if the document is mailed by registered mail, (iii) one day after being sent by professional or overnight courier or messenger service guaranteeing one-day delivery, with receipt confirmed by the courier, or (iv) on the date of transmission if sent by facsimile or other means of electronic transmission, with receipt confirmed. Any such notice shall be delivered or addressed (x) to Optionee at the address set forth below Optionee’s signature to this Agreement or at the most recent address specified by Optionee through written notice under this provision and (y) to the Company at the Company’s principal executive office. Failure to conform to the requirements of this Section shall not defeat the effectiveness of notice actually received by the addressee. 
15. Option Subject to Plan. The Option is subject to and shall be governed by the terms of the Plan, a copy of which is attached hereto. Optionee acknowledges receipt of a copy of the Plan and represents that Optionee is familiar with the terms and provisions thereof. Optionee agrees to accept as binding, conclusive and final all decisions or interpretations of the Board (or any committee of the Board to which administration of the Plan may be delegated) upon any questions arising under the Plan. 

3

16. Rights as a Stockholder. Neither Optionee nor any legal representative, heir or legatee of Optionee shall have any rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a stock certificate to Optionee or such representative, heir or legatee for such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Sections 12 and 13 of the Plan. 
17. No Rights to Existing Status. Nothing contained in this Agreement or in the Plan shall confer on Optionee any right to continue his or her existing status as an advisor to the Company or shall limit the ability of the Company or any subsidiary to terminate, with or without cause, in its sole discretion, Optionee’s status as an advisor to the Company. 
18. Waiver. Optionee agrees that the Option granted hereunder represents Optionee’s only right to purchase securities of the Company as of the date hereof, and supersedes any prior promises, understandings or agreements to grant any such right to Optionee or to sell any security of the Company to Optionee at any time prior to the date hereof. By execution hereof, Optionee hereby confirms that, except for this Option, Optionee has no other rights of any kind whatsoever to acquire securities of the Company. 
19. Arbitration of Disputes. Any dispute or controversy concerning the Option or otherwise with respect to the rights of Optionee under this Agreement, including a dispute pertaining to the validity of this Section 16, shall be resolved through binding arbitration before a single arbitrator in San Diego County, California in accordance with the Commercial Rules of Arbitration of the American Arbitration Association then in effect. The award of the arbitrator may be enforced in any court of competent jurisdiction. Each party shall bear such party’s own legal fees and other costs of such arbitration proceedings, and the parties shall each pay one-half of the costs of the arbitrator and of the American Arbitration Association. The arbitrator shall have no authority to require either party to pay the attorneys’ fees or costs of the other party as part of the arbitration award. 
 
20. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. 
[ remainder of page intentionally left blank; signature page follows ] 
 

4

IN WITNESS WHEREOF, the parties hereto have executed this Nonqualified Stock Option Agreement as of the day and year first above written. 
	
					
	THE "COMPANY"
	 
	"OPTIONEE"

	AUTOGENOMICS, INC.
	 
	NAME

	 
	 
	 
	 

	By:
	 
	 
	 

	 
	Fareed Kureshy
	 
	Signature of Optionee

	Title:
	President & CEO
	 
	 

	 
	 
	 
	 

	 
	 
	 
	Optionee's Address:

	 
	 
	 
	ADDRESS

	 
	 
	 
	CITY, STATE ZIP

	 
	 
	 
	Facsimile No.:
	 

	 
	 
	 
	Phone No.:
	 

	 
	 
	 
	Email.:
	 

[ Signature Page for Nonqualified Stock Option Agreement for Qualified 
Participants Under 2000 Equity Incentive Plan of AutoGenomics, Inc. ] 
 

5

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