Document:

Exhibit 10.2

 

EXECUTION

 

REGISTRATION RIGHTS
AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”),
dated as of March 26, 2009, is by and among CLARIENT, INC., a Delaware
corporation (the “Company”), and
the undersigned Purchaser (the “Purchaser”).

 

RECITALS

 

In connection with, and
pursuant to, that certain Stock Purchase Agreement by and among the parties
hereto of even date herewith (the “Stock
Purchase Agreement”), the Company has agreed, upon the terms and
subject to the conditions of the Stock Purchase Agreement, to issue and sell to
the Purchaser at the Closings shares of Series A Convertible Preferred
Stock, par value $0.01 per share (the “Series A
Preferred Stock”), of the Company (the “Preferred Shares”), which shall be convertible into shares of
Common Stock, par value $0.01 per share (the “Common
Stock”), of the Company in accordance with the terms of the Company’s
Certificate of Designations, Preferences and Rights of Series A
Convertible Preferred Stock (the “Certificate
of Designations”). 
Capitalized terms used and not otherwise defined herein shall have the
respective meanings set forth in the Stock Purchase Agreement.

 

To induce the Purchaser to
execute, deliver and perform the Stock Purchase Agreement, the Company has
agreed to provide certain registration rights under the Securities Act of 1933,
as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the “Securities
Act”), and applicable state securities laws.

 

NOW,
THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Investors hereby agree as follows:

 

1.             DEFINITIONS.

 

In addition to the
capitalized terms elsewhere defined herein, the following terms, when used
herein, shall have the following meanings, unless the context otherwise
requires:

 

(a)           “Agreement” has the meaning set forth
in the preface above.

 

(b)           “Allowable Grace Period” has the
meaning set forth in Section 3(m).

 

(c)           “Business Day”
means any day except Saturday, Sunday and any day which shall be a legal
holiday or a day on which banking institutions in Los Angeles, California
generally are authorized or required by law or other governmental actions to
close.

 

(d)           “Certificate of Designations” has the
meaning set forth in the recitals above.

 

(e)           “Claims” has the meaning set forth
in Section 6(a).

 

(f)            “Common Stock” has the meaning set forth
in the recitals above.

 

 

(g)           “Company” has the meaning set forth
in the preface above.

 

(h)           “Conversion Shares” means all of
the shares of Common Stock into which the Preferred Shares are converted or are
potentially convertible.

 

(i)            “Effectiveness Deadline” has the
meaning set forth in Section 2(a).

 

(j)            “Exchange Act” has the meaning set forth
in Section 3(b).

 

(k)           “Filing Deadline” has the
meaning set forth in Section 2(a).

 

(l)            “Grace Period” has the meaning set forth
in Section 3(m).

 

(m)          “Investor Majority” has the
meaning set forth in Section 2(b).

 

(n)           “Investors” means (i) the
Purchaser, (ii) any transferee or assignee thereof to whom the Purchaser
assigns its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 8(c), and (iii) any
transferee or assignee thereof to whom a transferee or assignee assigns its
rights under this Agreement and who agrees to become bound by the provisions of
this Agreement in accordance with Section 8(c).

 

(o)           “Legal Counsel” has the meaning
set forth in Section 2(b).

 

(p)           “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a
trust, other entity, an unincorporated organization and a governmental or any
department or agency thereof.

 

(q)           “Preferred Shares” has the
meaning set forth in the recitals above.

 

(r)            “Purchaser” has the meaning set forth
in the preface above.

 

(s)           “Register,”  “registered,” and “registration”
refer to a registration effected by preparing and filing one or more
Registration Statements in compliance with the Securities Act and pursuant to Rule 415
under the Securities Act or any successor rule providing for offering
securities on a continuous or delayed basis (“Rule 415”), and the
declaration or ordering of effectiveness of such Registration Statement(s) by
the SEC.

 

(t)            “Registrable Securities” means (i) all
Conversion Shares issued or issuable upon conversion of the Preferred Shares,
and (ii) any shares of capital stock issued or issuable with respect to
the Conversion Shares as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise; provided, however, that Registrable Securities shall not
include any such shares (A) which have been disposed of pursuant to an
effective registration statement under the Securities Act, (B) which have
been sold or otherwise transferred in a transaction in which the rights under
the provisions of this Agreement have not been assigned, (C) which have
been sold under Rule 144 or (D) with respect to an Investor, this
Agreement has terminated pursuant to Section 8(n) hereof.

 

 

2

 

(u)           “Registration Period” has the
meaning set forth in Section 3(a).

 

(v)           “Registration Statement” means a
registration statement or registration statements of the Company filed under
the Securities Act covering the Registrable Securities.

 

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

 

(x)            “Safeguard” has the meaning set forth
in the Stock Purchase Agreement.

 

(y)           “Safeguard Registration Rights Agreement” has the meaning set forth in Section 8(a).

 

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

 

(aa)         “Securities Act” has the
meaning set forth in the recitals above.

 

(bb)         “Series A Preferred Stock” has the
meaning set forth in the recitals above.

 

(cc)         “Stock Purchase Agreement” has the
meaning set forth in the recitals above.

 

(dd)         “Strategic Transaction” has the
meaning set forth in the Stock Purchase Agreement.

 

(ee)         “Subsequent Registration Rights” has the meaning set forth in Section 8(a).

 

2.             REGISTRATION.

 

(a)           Mandatory Registration. The Company
shall prepare and file with the SEC the Registration Statement on Form S-3
covering the resale of all of the Registrable Securities. The Company shall
file the Registration Statement no later than ninety (90) days prior to the
first anniversary of the Initial Closing.

 

Such deadline is referred to herein as the “Filing
Deadline”.  In the
event that Form S-3 is unavailable for such a registration, the Company
shall use such other form as is available for such a registration, subject to
the provisions of Section 2(c). 
The Registration Statement prepared pursuant hereto shall register for
resale at least that number of shares of Common Stock equal to the aggregate
number of Registrable Securities issued and outstanding or deemed issued and
outstanding on an as-converted basis as of the trading day immediately
preceding the date the Registration Statement is initially filed with the SEC,
subject to adjustment as provided in Section 2(d).  The Company shall use its best efforts to
have the Registration Statement declared effective by the SEC no later than the
first anniversary of the Initial Closing (the “Effectiveness
Deadline”).

 

 

3

 

(b)           Legal Counsel. 
Subject to Section 5 hereof, the Investors holding a
majority of the Registrable Securities (on an as converted basis, the “Investor Majority”) shall have the right
to select one legal counsel to review and oversee any offering pursuant to this
Section 2 (“Legal Counsel”), which shall
be Finn Dixon & Herling LLP or such other counsel as thereafter
designated by an Investor Majority.  The
Company shall reasonably cooperate with Legal Counsel in performing the Company’s
obligations under this Agreement.

 

(c)           Ineligibility for Form S-3.  In the event that Form S-3 is not
available for the registration of the resale of Registrable Securities
hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form reasonably acceptable to an Investor
Majority and (ii) undertake to register the Registrable Securities on Form S-3
as soon as such form is available, provided that the Company shall maintain the
effectiveness of the Registration Statement then in effect until such time as a
Registration Statement on Form S-3 covering the Registrable Securities has
been declared effective by the SEC.

 

(d)           Sufficient Number of Shares Registered.  In the event that the number of shares
available under the Registration Statement filed pursuant to Section 2(a) is,
or becomes, insufficient to cover all of the Registrable Securities required to
be covered by the Registration Statement, the Company shall amend the Registration
Statement, or file a new Registration Statement (on the short form available
therefor, if applicable), or both, so as to cover at least 100% of the
aggregate number of the Registrable Securities required to be registered
hereunder as of the trading day immediately preceding the date of the filing of
such amendment or new Registration Statement, in each case, as soon as
practicable, but in any event not later than fifteen (15) days after the
necessity therefor arises.  The Company
shall use it best efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing
thereof.  For all purposes of this
Agreement, such additional Registration Statement shall be deemed to be the
Registration Statement required to be filed by the Company pursuant to Section 2(a) of
this Agreement, and the Company and the Investors shall have the same rights
and obligations with respect to such additional Registration Statement as they
shall have with respect to the initial Registration Statement required to be
filed by the Company pursuant to Section 2(a).

 

(e)           Selection of Underwriters.  An Investor Majority shall have the right to
select the managing/book-running underwriter(s), if any, for the Registrable Securities
to be registered pursuant to Section 2(a), subject to the Company’s
written approval of such managing/book-running underwriter(s), such written
approval not to be unreasonably withheld, conditioned or delayed.

 

(f)            Certain Limitations. In the event that a
registration hereunder is underwritten (at the election of the Investors as
described in Section 2(e)), if a representative of the
managing/book-running underwriter(s) advises the Investors in writing that
marketing factors require a limitation of the number of securities to be
underwritten (including Registrable Securities) because the number of
securities to be underwritten is likely to have an adverse effect on the price,
timing or the distribution of securities to be offered, then the number of
securities that may be included in the underwriting shall be allocated, first,
to the Investors, allocated among the Investors on a pro rata basis based on
the total number of Registrable Securities held by the Investors and second,
only if the Investors are able to have all of their Registrable Securities
included, to the Company and other holders of registration rights to the extent
they are participating in such offering. 
Any Registrable Securities or other securities excluded or withdrawn
from such underwriting shall be withdrawn from such registration.

 

4

 

(g)           Plan of Distribution. The intended method or
methods of disposition and/or sale (Plan of Distribution) of the Registrable
Securities contained in the Registration Statement to be filed hereunder shall
be in the form attached hereto as Exhibit A, with only such
modifications and changes as expressly agreed by the Company and the Investor
Majority.

 

3.             RELATED
OBLIGATIONS.

 

At such time as the Company
is obligated to file a Registration Statement with the SEC pursuant to Sections
2(a), 2(c) or 2(d), the Company will use its best
efforts to effect the registration of the Registrable Securities covered by
such Registration Statement in accordance with the intended method of
disposition thereof and, pursuant thereto, the Company shall have the following
obligations:

 

(a)           The Company shall promptly prepare and file with the SEC a
Registration Statement with respect to the applicable Registrable Securities (but
in no event later than the Filing Deadline) and use its best efforts to cause
such Registration Statement relating to the applicable Registrable Securities
to become effective no later than the Effectiveness Deadline.  The Company shall use its best efforts to
keep the Registration Statement effective pursuant to Rule 415 at all
times until the date on which the Investors shall have sold all the Registrable
Securities covered by such Registration Statement (the “Registration
Period”), which Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein), at the time it is
first filed with the SEC, at the time it is ordered effective by the SEC and at
all times during which it is required to be effective hereunder (and each such
amendment and supplement at the time it is filed with the SEC and at all times
during which it is available for use in connection with the offer and sale of
the Registrable Securities) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or
necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading.  In
the event the Registration Statement is no longer effective during the
Registration Period, the Company shall use its best efforts to immediately
cause a new Registration Statement to become effective pursuant to Sections
2(a), 2(c) or 2(d).

 

(b)           The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with such
Registration Statement, which prospectus is to be filed pursuant to Rule 424
promulgated under the Securities Act, as may be necessary to keep such
Registration Statement effective at all times during the Registration Period,
and, during such period, comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities of the Company covered
by such Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods
of disposition by the seller or sellers thereof as set forth in such
Registration Statement.  In the case of
amendments and supplements to a Registration Statement which are required to be
filed pursuant to this Agreement (including pursuant to this Section 3(b))
by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K
or any analogous report under 

 

5

the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), the Company shall have incorporated such
report by reference into the Registration Statement, if applicable, or shall
file such amendments or supplements with the SEC on the same day on which the
Exchange Act report is filed which created the requirement for the Company to
amend or supplement the Registration Statement.

 

(c)           The Company shall permit Legal Counsel to review and
comment upon (i) any Registration Statement prior to its filing with the
SEC and (ii) all other Registration Statements and all amendments and
supplements to all Registration Statements (except for Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and
any similar or successor reports) prior to their filing with the SEC.  The Company shall not submit a request for
acceleration of the effectiveness of a Registration Statement or any amendment
or supplement thereto without the prior approval of Legal Counsel, which
consent shall not be withheld unless Legal Counsel has reasonable objections to
disclosures in the Registration Statement relating to (I) the Registrable
Securities or the Preferred Shares or (II) the Investors.  The Company shall furnish to Legal Counsel,
without charge, (i) any correspondence from the SEC or the staff of the
SEC to the Company or its representatives relating to any Registration
Statement, (ii) promptly after the same is prepared and filed with the SEC,
one copy of any Registration Statement and any amendment(s) thereto,
including financial statements and schedules, all documents incorporated
therein by reference and all exhibits and (iii) upon the effectiveness of
any Registration Statement, one copy of the prospectus included in such
Registration Statement and all amendments and supplements thereto.  The Company shall reasonably cooperate with
Legal Counsel in performing the Company’s obligations pursuant to this Section 3.

 

(d)           The Company shall furnish, without charge, to each
Investor selling Registrable Securities and each underwriter, if any, such
number of copies of such Registration Statement, each amendment and supplement
thereto (in each case including all exhibits), the prospectus included in such
Registration Statement (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 under the
Securities Act, each free writing prospectus utilized in connection therewith,
in each case, in conformity with the requirements of the Securities Act, and
other documents, as such Investor or underwriter may reasonably request in
order to facilitate the public sale or other disposition of the Registrable
Securities owned by such Investor;

 

(e)           The Company shall use its best efforts to cause such
Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary to consummate the
disposition of such Registrable Securities pursuant to a Registration
Statement; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (x) qualify
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(e), (y) subject itself to
general taxation in any such jurisdiction, or (z) file a general consent
to service of process in any such jurisdiction.

 

(f)            The Company shall notify Legal Counsel and each Investor
in writing of the happening of any event, as promptly as practicable after
becoming aware of such event, as a result of which the prospectus included in a
Registration Statement, as then in effect, includes an 

 

 

6

untrue statement of a material fact or
omission to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading (provided that in no event shall such notice contain
any material, nonpublic information), and promptly prepare a supplement or
amendment to such Registration Statement to correct such untrue statement or
omission, and deliver such number of copies of such supplement or amendment to
Legal Counsel and each Investor as Legal Counsel or such Investor may
reasonably request.  The Company shall
also promptly notify Legal Counsel and each Investor in writing (i) when a
prospectus or any prospectus supplement or post-effective amendment has been
filed, and when a Registration Statement or any post-effective amendment has
become effective (notification of such effectiveness shall be delivered to
Legal Counsel and each Investor by facsimile on the same day of such
effectiveness and by overnight mail), (ii) of any request by the SEC for
amendments or supplements to a Registration Statement or related prospectus or
related information, and (iii) of the Company’s reasonable determination
that a post-effective amendment to a Registration Statement would be
appropriate.

 

(g)           The Company shall use its best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of a
Registration Statement, or the suspension of the qualification of any of the
Registrable Securities for sale in any jurisdiction and, if such an order or
suspension is issued, to obtain the withdrawal of such order or suspension
promptly and to notify Legal Counsel and each Investor who holds Registrable
Securities being sold of the issuance of such order and the resolution thereof
or its receipt of actual notice of the initiation or threat of any proceeding
for such purpose.

 

(h)           The Company shall cooperate with the Investors who hold
Registrable Securities being offered and facilitate the timely preparation and
delivery of certificates (not bearing any restrictive legend) representing the
Registrable Securities to be offered pursuant to a Registration Statement and
enable such certificates to be in such denominations or amounts, as the case
may be, as the Investors may reasonably request and registered in such names as
the Investors may request.

 

(i)            The Company shall provide a transfer agent and registrar
of all such Registrable Securities not later than the effective date of the
Registration Statement.

 

(j)            The Company shall otherwise use its best efforts to
comply (and continue to comply) with all applicable rules and regulations
of the SEC (including, without limitation, maintaining disclosure controls and
procedures (as defined in Exchange Act Rule 13a-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rule 13a-15(f))
in accordance with the Exchange Act), and make generally available to its
security holders, as soon as reasonably practicable after the effective date of
the registration statement (and in any event within forty-five (45) days, or
ninety (90) days if it is a fiscal year, after the end of such twelve-month
(12) period described hereafter), an earnings statement (which need not be
audited) covering the period of at least twelve (12) consecutive months
beginning with the first day of the Company’s first calendar quarter after the
effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder;

 

 

7

(k)           Within one (1) Business Day after a Registration
Statement which covers Registrable Securities is ordered effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to
deliver, to the transfer agent for such Registrable Securities (with copies to
the Investors whose Registrable Securities are included in such Registration
Statement) confirmation that such Registration Statement has been declared
effective by the SEC.

 

(l)            The Company shall use commercially reasonable efforts to
take all other actions reasonably necessary to expedite and facilitate
disposition by Investors of Registrable Securities pursuant to a Registration
Statement.

 

(m)          Notwithstanding anything to the contrary in Section 3(g),
at any time after a Registration Statement has been declared effective by the
SEC, the Company may suspend the use or effectiveness of any Registration
Statement (a “Grace Period”) (and the Investors hereby agree not to
offer or sell any Registrable Securities pursuant to such Registration
Statement during such Grace Period) if there is material, non-public
information about the Company that the Company reasonably determines not to be
in the best interests of the Company to disclose and that the Company is not otherwise
required to disclose; provided, that the Company shall promptly (i) notify
the Investors in writing of such suspension and the date on which the Grace
Period will begin and (ii) notify the Investors in writing of the date on
which the Grace Period ends; and, provided  further, that no
individual Grace Period shall exceed thirty (30) consecutive days and during
any 180 day period, all such Grace Periods shall not exceed an aggregate of
thirty (30) days (an “Allowable Grace Period”).  For purposes of determining the length of a
Grace Period above, the Grace Period shall begin on and include the date the
holders receive the notice referred to in clause (i) and shall end
on and include the later of the date the holders receive the notice referred to
in clause (ii) and the date referred to in such notice.  The provisions of Section 3(g) hereof
shall not be applicable during any Allowable Grace Period.  Upon expiration of the Grace Period, the
Company shall again be bound by the first sentence of Section 3(f) with
respect to the information giving rise thereto unless such material non-public
information is no longer applicable.

 

(n)           In the event of any underwritten public offering (at the
election of the Investors, as described in Section 2(e)), the
Company shall enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter(s) of
such offering selected by the Investor. 
Each Investor participating in such underwriting shall also enter into
and perform its obligations pursuant to such an agreement.

 

(o)           Promptly after the filing of a Registration Statement
hereunder, the Company shall use its best efforts to secure the listing of all
of the Registrable Securities covered by such Registration Statement upon each
national securities exchange and automated quotation system, if any, upon which
shares of Common Stock shall be so listed (subject to notice of issuance) and
shall maintain, so long as any other shares of Common Stock shall be so listed,
such listing of such Registrable Securities.

 

(p)           During the period that the Company is required to maintain
effectiveness of the Registration Statement pursuant to Section 3(a),
the Company shall not bid for or purchase any Common Stock or any right to purchase
Common Stock or attempt to induce any person to purchase any such security or
right if such bid, purchase or attempt would in any way limit the right of the
Investors to sell Registrable Securities by reason of the limitations set forth
in Regulation M under the Exchange Act.

 

8

 

(q)           In the event a Registration Statement covering the
Registrable Securities will terminate by its terms, the Company shall refile
(or file and have declared effective) a new Registration Statement and use its
best efforts to minimize and gap between the two Registration Statements.

 

(r)            To the extent that any of the Investors is deemed to be
an underwriter of Registrable Securities pursuant to any SEC comments or
policies, the Company agrees that:

 

(i)            the indemnification and contribution
provisions contained in Section 6 shall be applicable to the
benefit of the Investors in their role as deemed underwriter in addition to
their capacity as a holder of Registrable Securities;

 

(ii)           the Investors shall be entitled to
conduct the due diligence which they would normally conduct in connection with
an offering of securities registered under the Securities Act, including
without limitation receipt of customary opinions and comfort letters;

 

(iii)          The Company shall obtain opinions of
counsel to the Company (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the Investor Majority) in
customary form addressed to the Investors, covering such matters as are
customarily covered in opinions requested in underwritten offerings and dated
as of the date such opinion is customarily dated.

 

(iv)          The Company shall obtain “comfort
letters” and updates thereof from the independent public accountants of the Company
(and, if necessary, any other independent public accountants of any subsidiary
of the Company or of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the
Registration Statement), addressed to the Investors, in customary form and
covering matters of the type customarily covered in comfort letters in
connection with primary underwritten offerings and dated as of the date such
comfort letter is customarily dated.

 

(v)           The Company shall deliver such other
customary documents and certificates as may be reasonably requested by the
Investors to evidence compliance with any customary conditions contained in
underwriting agreements, if any.

 

(s)           Notwithstanding anything to the contrary in Section 2
or 3 of this Agreement, the Company shall not be obligated to take any action
to effect or complete any registration or file the Registration Statement, or
maintain the effectiveness of the Registration Statement, if the Company shall
furnish to the Investors holding Registrable Securities a certificate signed by
the Chief Executive Officer of the Company stating that in the good faith
judgment of the Board of Directors of the Company, it would be detrimental to
the Company and its stockholders for such registration statement to be filed
and it is therefore essential to defer the filing of such registration
statement.  The Company shall have the
right to defer such filing or maintenance of effectiveness for a period of not
more than 120 days in any 365 day period.

 

 

9

4.             OBLIGATIONS
OF THE INVESTORS.

 

(a)           At least ten (10) Business Days prior to the first
anticipated filing date of a Registration Statement, the Company shall notify
each Investor in writing of the information the Company reasonably requires
from each such Investor if such Investor elects to have any of such Investor’s
Registrable Securities included in such Registration Statement.  It shall be a condition precedent to the
obligations of the Company to complete the registration pursuant to this
Agreement with respect to the Registrable Securities of a particular Investor
that such Investor shall furnish to the Company such information regarding
itself, the Registrable Securities held by it and the intended method of
disposition of the Registrable Securities held by it as shall be reasonably
required to effect the registration of such Registrable Securities and shall
execute such documents in connection with such registration as the Company may
reasonably request.

 

(b)           Each Investor, by such Investor’s acceptance of the
Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any
Registration Statement hereunder, unless such Investor no longer holds any
Registrable Securities or has notified the Company in writing of such Investor’s
election to exclude all of such Investor’s Registrable Securities from such
Registration Statement.

 

(c)           Each Investor agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 3(g) or
the first sentence of Section 3(f), such Investor will immediately
discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering such Registrable Securities until such Investor’s
receipt of the copies of the supplemented or amended prospectus contemplated by
Section 3(g) or the first sentence of Section 3(f) or
receipt of notice that no supplement or amendment is required and, if so
directed by the Company, such Investor shall deliver to the Company, or destroy
all copies in such Investor’s possession, any prospectus covering such
Registrable Securities current at the time of receipt of such notice.  Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to deliver unlegended shares of Common
Stock to a transferee of an Investor in accordance with the terms of the Stock
Purchase Agreement in connection with any sale of Registrable Securities with
respect to which an Investor has entered into a contract for sale prior to the
Investor’s receipt of a notice from the Company of the happening of any event
of the kind described in Section 3(g) or the first sentence of
Section 3(f) and for which the Investor has not yet settled.

 

5.             EXPENSES
OF REGISTRATION.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with
registrations, filings or qualifications pursuant to Sections 2 and 3,
including, without limitation, all registration, listing and qualifications
fees, printers and accounting fees, fees and disbursements of Legal Counsel (up
to an aggregate of $20,000) in connection with registration, filing or
qualification pursuant to Sections 2 and 3 of this Agreement and
fees and disbursements of counsel for the Company shall be paid by the Company.

 

10

 

 

6.                                       INDEMNIFICATION.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

(a)                                  Obligations of
the Company to Indemnify.  In
the event of any registration of any Registrable Securities pursuant to this
Agreement, the Company will, and hereby agrees to, and hereby does, indemnify
and hold harmless, to the fullest extent permitted by law, each Investor, its
directors, officers, fiduciaries, employees, stockholders, members or general
and limited partners (and the directors, officers, fiduciaries, employees,
stockholders, members or general and limited partners thereof), underwriter, if
any, in the offering or sale of such securities, each officer, director,
employee, stockholder, fiduciary, managing director, agent, affiliate,
consultant, representative, successor, assign or partner of such underwriter,
and each other Person, if any, who controls such seller or any such underwriter
within the meaning of the Securities Act, from and against any and all losses, claims,
damages or liabilities, joint or several, actions or proceedings (whether
commenced or threatened) and expenses (including reasonable fees of counsel and
any amounts paid in any settlement effected with the Company’s consent, which
consent shall not be unreasonably withheld, conditioned or delayed) to which
each such indemnified party may become subject under the Securities Act or
otherwise in respect thereof (collectively, “Claims”),
insofar as such Claims arise out of or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in any
registration statement under which such securities were registered under the
Securities Act or the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) any untrue statement or alleged untrue statement of a
material fact contained in any preliminary, final or summary prospectus or any
amendment or supplement thereto, together with the documents incorporated by
reference therein, or any free writing prospectus utilized in connection
therewith, or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, or (iii) any violation by the Company of the Securities Act or
the Exchange Act or any rule or regulation promulgated under the
Securities Act or the Exchange Act, and the Company will reimburse any such
indemnified party for any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such Claim
as such expenses are incurred; provided, however, that the Company
shall not be liable to any such indemnified party in any such case to the
extent such Claim arises out of or is based upon any untrue statement or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact made in such registration statement or amendment thereof or
supplement thereto or in any such prospectus or any preliminary, final or
summary prospectus or free writing prospectus in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such indemnified party specifically for use therein; provided, further,
however, that the Company shall not be liable to any such indemnified party
with respect to any amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld).  Such indemnity and reimbursement of expenses
shall remain in full force and effect regardless of any investigation made by
or on behalf of such indemnified party and shall survive the transfer of such
securities by such seller.  Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of any indemnified party and shall survive the transfer of

 

11

 

the Registrable Securities by an Investor;
provided, further, however, that the foregoing indemnity agreement with respect
to any preliminary prospectus shall not inure to the benefit of any Investor or
underwriter, or any person controlling or claiming through such Investor or
underwriter, from whom the person asserting any such Claim purchased shares in
the offering, if a copy of the prospectus (as then amended or supplemented and
provided by the Company to the Investor or underwriter, as applicable, in
accordance with Section 3(d)) was not sent or given by or on behalf of
such Investor or underwriter to such person, if required by law so to have been
delivered, at or prior to the written confirmation of the sale of the shares to
such Person, and if the prospectus (as so amended or supplemented) would have
cured the defect giving rise to such Claim.

 

(b)                                 Obligations of
the Investors to Indemnify.  Each Investor selling Registrable Securities
that are included in the securities as to which any registration under this
Agreement is being effected shall, severally and not jointly, indemnify and
hold harmless (in the same manner and to the same extent as set forth in Section 6(a))
to the extent permitted by law the Company, its officers and directors, legal
counsel and accountants, each Person controlling the Company within the meaning
of the Securities Act and all other prospective sellers and their respective
directors, officers, stockholders, fiduciaries, managing directors, agents,
affiliates, consultants, representatives, successors, assigns or general and
limited partners and respective controlling Persons for Claims insofar as such
Claims arise out of are based upon any untrue statement or alleged untrue
statement of any material fact in, or omission or alleged omission of any
material fact from, such registration statement, any preliminary, final or
summary prospectus contained therein, or any amendment or supplement thereto,
or any free writing prospectus utilized in connection therewith, if such
statement or alleged statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the
Company or its representatives by or on behalf of such Investor specifically
for use therein, and each such Investor shall reimburse such indemnified party
for any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such Claim as such expenses
are incurred; provided, however, that the aggregate amount which
any such Investor shall be required to pay pursuant to this Section 6(b) and
Sections 6(c) and (e) shall in no case be greater than
the amount of the net proceeds received by such Investor upon the sale of the
Registrable Securities pursuant to the registration statement giving rise to
such Claim.  The Company and each
Investor of Registrable Securities hereby acknowledge and agree that, unless
otherwise expressly agreed to in writing by such Investors to the contrary, for
all purposes of this Agreement, the only information furnished or to be
furnished to the Company by or on behalf of any Investor for use in any such
registration statement, preliminary, final or summary prospectus or amendment
or supplement thereto, or any free writing prospectus, are statements
specifically relating to (i) the number of Registrable Securities held by
such Investor and its Affiliates and (ii) the name and address of such
Investor.  If any additional information
about such Investor or the plan of distribution (other than for an underwritten
offering) is required by law to be disclosed in any such document, then such
Investor shall not unreasonably withhold its agreement referred to in the
immediately preceding sentence.  Such
indemnity and reimbursement of expenses shall remain in full force and effect
regardless of any investigation made by or on behalf of such indemnified party
and shall survive the transfer of such securities by such Investor.

 

12

 

(c)                                  Blue Sky Laws.  Indemnification similar to that specified in
the preceding paragraphs (a) and (b) of this Section 6
(with appropriate modifications) shall be given by the Company and each seller
of Registrable Securities with respect to any required registration or other
qualification of securities under any applicable securities and state “blue sky”
laws.

 

(d)                                 Procedure.  Any Person entitled to indemnification under
this Agreement shall notify promptly the indemnifying party in writing of the
commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Section 6, but the
failure of any indemnified party to provide such notice shall not relieve the indemnifying
party of its obligations under the preceding paragraphs of this Section 6,
except to the extent the indemnifying party is materially and actually
prejudiced thereby and shall not relieve the indemnifying party from any
liability which it may have to any indemnified party otherwise than under this
Agreement.  In case any action or
proceeding is brought against an indemnified party and it shall notify the
indemnifying party of the commencement thereof (as required above), the
indemnifying party shall be entitled to participate therein and to assume the
defense thereof jointly with any other indemnifying party similarly notified,
to the extent that it chooses, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party, the indemnifying party shall not be liable to such
indemnified party for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs
of investigation; provided, however, that (i) if the
indemnifying party fails to take reasonable steps necessary to defend
diligently the action or proceeding within twenty (20) days after receiving
notice from such indemnified party that the indemnified party believes it has
failed to do so; or (ii) if such indemnified party who is a defendant in
any action or proceeding which is also brought against the indemnifying party
reasonably shall have concluded that there may be one or more legal or equitable
defenses available to such indemnified party which are not available to the
indemnifying party or which may conflict with those available to another
indemnified party with respect to such Claim; or (iii) if representation
of both parties by the same counsel is otherwise, in the reasonable opinion of
outside counsel to the indemnified party, a conflict of interest between such
indemnified and indemnifying party may exist in respect of such claim, then, in
any such case, the indemnified party shall have the right to assume or continue
its own defense as set forth above (but with no more than one firm of counsel
for all indemnified parties in each jurisdiction) and the indemnifying party
shall be liable for any reasonable expenses therefor.  No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (A) includes an unconditional release of the indemnified party
from all liability arising out of such action or claim and (B) does not
include a statement as to or an admission of fault, culpability or a failure to
act, by or on behalf of any indemnified party.

 

(e)                                  Contribution.  If for any reason the foregoing indemnity is
unavailable, unenforceable or is insufficient to hold harmless an indemnified
party under Sections 6(a), (b) or (c), then each
applicable indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of any Claim in such proportion as is
appropriate to reflect the relative fault of the indemnifying party, on the one
hand, and the indemnified party, on the other 

 

13

 

hand, with respect to such Claim, as well as
other relevant equitable considerations. 
The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to
information supplied by the indemnifying party or the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission.  If, however, the allocation provided in the
second preceding sentence is not permitted by applicable law, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such
relative faults but also the relative benefits of the indemnifying party and
the indemnified party as well as any other relevant equitable
considerations.  The parties hereto agree
that it would not be just and equitable if any contribution pursuant to this Section 6(e) were
to be determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in the
preceding sentences of this Section 6(e).  The amount paid or payable in respect of any
Claim shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or
defending any such Claim.  No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  Notwithstanding anything in this Section 6(e) to
the contrary, no indemnifying party (other than the Company) shall be required
pursuant to this Section 6(e) to contribute any amount in
excess of the net proceeds received by such indemnifying party from the sale of
Registrable Securities in the offering to which the losses, claims, damages or
liabilities of the indemnified parties relate, less the amount of any indemnification
payment made by such indemnifying party pursuant to Sections 6(b) and
(c).

 

(f)                                    Other
Agreements. 
Notwithstanding this Section 6, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement, if any, entered into in connection with the underwritten public
offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

 

(g)                                 Payments.  The indemnification and contribution required
by this Section 6 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills
are received or expense, loss, damage or liability is incurred.

 

(h)                                 Survival.  The indemnification and contribution provided
for under this Agreement will remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer,
director or controlling Person of such indemnified party and will survive the
transfer of Series A Preferred Stock or any Registrable Securities.

 

7.                                       Reports Under the Exchange
Act.  With a view to making
available to the Investors all of the benefits of Rule 144, the Company
agrees to: (i) make and keep public information available, as those terms
are understood and defined in Rule 144, (ii) file with the SEC in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act and (iii) furnish to each Investor so
long as such Investor owns Registrable Securities, promptly upon request, (A) a
written statement by the Company that it has complied with the reporting
requirements of Rule 144 and the Exchange Act, (B) a copy of the most
recent annual or quarterly report of the Company and such other reports and
documents so filed by the Company and (C) such other information as may be
reasonably requested to permit the Investors to sell such securities pursuant
to Rule 144 without registration.

 

14

 

8.                                       Miscellaneous.

 

(a)                                  Other
Registration Rights.

 

(i)                                     The Company may
hereafter grant to any Person or Persons the right to request the Company to
register any equity securities of the Company (the “Subsequent Registration Rights”), or any securities
convertible or exchangeable into or exercisable for such securities, without
the prior written consent of the holders of the Registrable Securities; provided,
however, that the Subsequent Registration Rights may not have priority
over the registration rights of the Registrable Securities hereunder in any
respect and such Subsequent Registration Rights shall have no piggyback rights
on any registration and sale of Registrable Securities hereunder.

 

(ii)                                  The Company has
not previously entered into any agreement granting any registration rights with
respect to any of its securities to any Person which have not been fully
satisfied, other than those rights granted in that certain Amended and Restated
Registration Rights Agreement dated February 27, 2009 by and among the
Company and Safeguard (the “Safeguard
Registration Rights Agreement”).

 

(b)                                 General
Piggyback Rights of the Investors.  If at any time during the Registration Period
there is not an effective Registration Statement covering all of the
Registrable Securities for any reason whatsoever and the Company has filed, or
is preparing to file, with the SEC a registration statement relating to an
offering for its own account or the account of others under the Securities Act
of any of its equity securities, other than on Form S-4 or Form S-8
(each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, or any
registration statement filed in connection with the Strategic Transaction, then
the Company shall send to each Investor written notice of such determination
and, if within ten (10) days after receipt of such notice, any such
Investor shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such
Investor requests to be registered, subject to customary underwriter cutbacks
applicable to all holders of registration rights, which customary underwriter
cutbacks shall be applied pro rata among such holders of registration
rights.  For the sake of clarity, the
covenants and obligations of the Company hereunder (including, without
limitation, Sections 3, 5 and 6) shall apply to such piggy
back registration, as applicable.

 

(c)                                  Specific
Piggyback Rights of the Investors and Safeguard.

 

(i)                                     Piggyback
Rights of the Investors on Safeguard Registration Rights; Amendment to
Safeguard Registration Rights Agreement.  Notwithstanding anything contained herein to
the contrary or any provision in the terms of the Safeguard Registration Rights
Agreement to the contrary, in the event that there is an election for the
underwritten registration of registrable securities under Section 2 of the
Safeguard Registration Rights 

 

15

 

Agreement, then the Company
shall send to each Investor written notice of such proposed registration and,
if within ten (10) days after receipt of such notice, any such Investor
shall so request in writing, the Company shall include in such registration
statement all or any part of such Registrable Securities such Investor requests
to be registered up to an amount of Registrable Securities equal to twenty
percent (20%) of the registrable securities being included in the registration
under the Safeguard Registration Rights Agreement, subject further to customary
underwriter cutbacks applicable to all holders of registration rights, which
customary underwriter cutbacks shall be applied pro rata among such holders of
registration rights.  For the sake of
clarity, the covenants and obligations of the Company hereunder (including,
without limitation, Sections 3, 5 and 6) shall apply to such piggy back registration,
as applicable.  By its acknowledgement of
this Agreement on the signature pages hereto and the Company’s execution
of this Agreement, each of the Company and Safeguard agrees to this piggyback
provision and this provision shall be deemed to be an amendment to the
Safeguard Registration Rights Agreement and this amendment shall not be further
amended, waived or modified without the prior written consent of an Investor
Majority hereunder.

 

(ii)                                  Piggyback
Rights of Safeguard on Investors’ Registration Rights.  Notwithstanding anything contained herein to
the contrary or any provision in the terms of the Safeguard Registration Rights
Agreement to the contrary, in the event that there is an election for the
underwritten registration of Registrable Securities under Section 2 of
this Agreement, then the Company shall send to each “Holder” under the
Safeguard Registration Rights Agreement written notice of such proposed
registration and, if within ten (10) days after receipt of such notice,
any such Holder shall so request in writing, the Company shall include in such
registration statement all or any part of such registrable securities such
Holder requests to be registered up to an amount of registrable securities
equal to twenty percent (20%) of the registrable securities being included in
the registration under this Agreement, subject further to customary underwriter
cutbacks applicable to all holders of registration rights, which customary
underwriter cutbacks shall be applied pro rata among such holders of registration
rights.  For the sake of clarity, the
covenants and obligations of the Company under the Safeguard Registration
Rights Agreement shall apply to such piggy back registration, as applicable.

 

(d)                                 Assignment of
Registration Rights.  The
registration rights of any Investor under this Agreement with respect to any
Registrable Securities may be assigned to any Person who acquires such shares
of Registrable Securities; provided that (A) such Person is an
Affiliate of the Investor, (B) if the Investor is a partnership, such
Person is a liquidating trust for the benefit of its partners or such Person is
its partners or former partners in accordance with partnership interests or to
the estate of any such partner or former partner, (C) if the Investor is a
limited liability company, such Person is its members or former members in
accordance with their interest in the limited liability company, (D) if
the Investor is a corporation, such Person is its majority owned subsidiaries
or Affiliates thereof or (E) if the Investor is an individual, such Person
is the Investor’s family member or trust for the benefit of such Investor or
his or her family members or an entity whose equity owners consist solely of
the Investor and his or her family members. 
Upon any such permitted assignment (i) the Investor shall give the
Company written notice at or prior to the time of such assignment stating the
name and address of the assignee and identifying the shares with respect to
which the rights under this Agreement are being assigned; (ii) such
assignee shall agree in writing, in form and substance reasonably satisfactory
to the Company, to be bound to the same extent and in the same capacity as the 

 

16

 

Investor by the provisions of this Agreement;
and (iii) such assignee acknowledges, immediately following such
assignment, the further disposition of such securities by such assignee may be
restricted under the Securities Act. In connection with any such transfer the
Company shall, at its sole cost and expense, promptly after such assignment
take such reasonable actions as shall be reasonably acceptable to the Investors
and such permitted transferee to assure that the Registration Statement and
related prospectus are available for use by such permitted transferee for sales
of the Registrable Securities in respect of which the rights to registration
have been so assigned.

 

(e)                                  Successors and
Assigns; Third Party Beneficiaries.  Except as otherwise expressly provided
herein, all covenants and agreements contained in this Agreement by or on
behalf of any of the parties hereto will bind and inure to the benefit of the
respective permitted successors and assigns of the parties hereto, whether so
expressed or not.

 

(f)                                    Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

 

(g)                                 Descriptive
Headings.  The
descriptive headings of this Agreement are inserted for convenience of
reference only and do not constitute a part of, and shall not be utilized in
interpreting, this Agreement.

 

(h)                                 Notices.  Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); (iii) one (1) Business Day after
deposit with a nationally recognized overnight delivery service or (iv) five
(5) days after deposit in the U.S. mail, return receipt requested, in each
case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such
communications shall be:

 

If to the Company:

 

	
  Clarient, Inc.

  
	
  31 Columbia

  
	
  Aliso Viejo, California

  
	
  Facsimile:

  	
  (949) 425-5701

  
	
  Attention:

  	
  Chief Executive Officer

  

 

With
a copy to:

 

	
  Stradling, Yocca, Carlson & Rauth

  
	
  660 Newport Center Drive

  
	
  Suite 1600

  
	
  Newport Beach, California 92660

  
	
  Facsimile:

  	
  (949) 725-4100

  
	
  Attention:

  	
  Shivbir S. Grewal, Esq.

  

 

 

17

 

If to Legal Counsel:

 

	
  Finn Dixon & Herling LLP

  
	
  177 Broad Street

  
	
  Stamford, Connecticut 06901

  
	
  Facsimile:

  	
  (203) 325-5001

  
	
  Attention:

  	
  Michael J. Herling, Esq.

  

 

If
to an Investor, to its address and facsimile number set forth on the Schedule
of Investors attached hereto, with copies to such Investor’s representatives as
set forth on the Schedule of Investors, or to such other address and/or
facsimile number and/or to the attention of such other person as the recipient
party has specified by written notice given to each other party five (5) days
prior to the effectiveness of such change. 
Written confirmation of receipt or deposit in the U.S. mail, as the case
may be, (A) given by the recipient of such notice, consent, waiver or
other communication, (B) mechanically or electronically generated by the
sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission, (C) provided
by a courier or overnight courier service shall be rebuttable evidence of
personal service, receipt by facsimile or receipt from a nationally recognized
overnight delivery service or (D) by a signed return receipt in accordance
with clause (i), (ii), (iii), or (iv) above,
respectively.

 

(i)                                     Governing Law.  The corporate laws of the State of Delaware
shall govern all issues concerning the relative rights of the Company and its
stockholders.  All other questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Delaware or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of
Delaware.  Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts
sitting in the State of Delaware, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper.  Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of
process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.  If any
provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other
jurisdiction.  EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

18

 

(j)                                     Amendments and
Waivers.  The provisions of this
Agreement may be amended, waived or otherwise modified upon the written
agreement of the Company and the Investor Majority.  Any waiver, permit, consent or approval of
any kind or character on the part of any holders of any provision or condition
of this Agreement must be made in writing and shall be effective only to the
extent specifically set forth in writing. 
Notwithstanding the foregoing, Section 8(c)(ii) shall
not be amended, waived or otherwise modified without the prior written consent
of Safeguard (and/or their permitted transferees under the Safeguard
Registration Rights Agreement).

 

(k)                                  Final Agreement.  This Agreement constitutes the complete and
final agreement of the parties concerning the matters referred to herein and
supersedes all prior agreements and understandings.

 

(l)                                     Execution.  This Agreement may be executed in identical
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. 
This Agreement, once executed by a party, may be delivered to the other
party hereto by facsimile transmission of a copy of this Agreement bearing the
signature of the party so delivering this Agreement.

 

(m)                               Consents.  All consents and other determinations to be
made by the Investors pursuant to this Agreement shall be made, unless
otherwise specified in this Agreement, by Investors holding  a majority of the Registrable Securities,
determined as if all of the Preferred Shares then outstanding have been
converted into or exercised for Registrable Securities without regard to any
limitations on conversion of the Preferred Shares.

 

(n)                                 Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent
and no rules of strict construction will be applied against any party.

 

(o)                                 Termination of
Agreement.  This
Agreement and all registration rights granted to an Investor shall terminate
and be of no further force or effect with respect to that Investor if all of
the following conditions are satisfied: (i) such Investor (together with
its Affiliates, partners and former partners, member and former members) holds
less than two percent (2%) of the Company’s outstanding Common Stock (treating
all shares of convertible Preferred Stock on an as converted basis) and (ii) all
Registrable Securities held by and issuable to such Investor (and its
affiliates, partners and former partners, members and former members) may be
sold under Rule 144 during any ninety (90) day period, and provided that
the Company’s Common Stock is traded on a national stock exchange. For the
avoidance of doubt, this Agreement and all registration rights granted to the
Purchasers hereunder shall terminate and be of no further force or effect if
the Initial Closing does not occur.

 

(p)                                 Time
of the Essence. Time is of the essence in connection with
the Company’s performance of its obligations under this Agreement.

 

*
* * * * *

 

19

 

[Signature Page to
Clarient, Inc.

Registration Rights Agreement]

 

IN WITNESS
WHEREOF, the Investors and the Company have caused this
Registration Rights Agreement to be duly executed as of the date first written
above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  CLARIENT,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald A. Andrews

  
	
   

  	
   

  	
  Name:

  	
  Ronald A. Andrews

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

 

[Signature Page to
Clarient, Inc.

Registration Rights Agreement]

 

IN WITNESS
WHEREOF, the Purchasers and the Company have caused this
Registration Rights Agreement to be duly executed as of the date first written
above.

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  OAK INVESTMENT PARTNERS
  XII, LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  /s/ Ann H. Lamont

  
	
   

  	
  Ann
  H. Lamont

  
	
   

  	
  Managing
  Member of Oak Associates XII, LLC

  
	
   

  	
  The
  General Partner of Oak Investment Partners XII,

  Limited Partnership

  

 

 

SCHEDULE OF INVESTORS

 

	
  Investor’s Name

  	
   

  	
  Investor’s Address and Facsimile Number

  
	
  Oak
  Investment Partners XII, Limited Partnership

  	
   

  	
  One
  Gorham Island

  Westport, Connecticut 06880

  Attention: Ann H. Lamont

  Facsimile: (203) 226-6570

  

 

 

 

EXHIBIT A

 

Plan of Distribution

 

Each Selling Stockholder (the “Selling Stockholders”) of the
common stock and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their shares of common stock covered
hereby on any stock exchange, market or trading facility on which the shares
are traded or in private transactions. 
These sales may be at fixed or negotiated prices.  A Selling Stockholder may use any one or more
of the following methods when selling shares:

 

·                  ordinary brokerage transactions and
transactions in which the broker-dealer solicits purchasers;

 

·                  block trades in which the broker-dealer
will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction;

 

·                  purchases by a broker-dealer as principal
and resale by the broker-dealer for its account;

 

·                  an exchange distribution in accordance
with the rules of the applicable exchange;

 

·                  privately negotiated transactions;

 

·                  settlement of short sales entered into
after the effective date of the registration statement of which this prospectus
is a part;

 

·                  in transactions through broker-dealers
that agree with the Selling Stockholders to sell a specified number of such
shares at a stipulated price per share;

 

·                  through the writing or settlement of
options or other hedging transactions, whether through an options exchange or
otherwise;

 

·                  a combination of any such methods of
sale; or

 

·                  any other method permitted pursuant to
applicable law.

 

The Selling Stockholders may also sell shares under Rule 144 under
the Securities Act of 1933, as amended (the “Securities Act”), if
available, rather than under this prospectus.

 

Broker-dealers engaged by the Selling Stockholders may arrange for
other brokers-dealers to participate in sales. 
Broker-dealers may receive commissions or discounts from the Selling
Stockholders (or, if any broker-dealer acts as agent for the 

 

2

 

purchaser of shares, from the purchaser) in amounts to
be negotiated, but, except as set forth in a supplement to this Prospectus, in
the case of an agency transaction not in excess of a customary brokerage
commission in compliance with FINRA Rule 2440; and in the case of a
principal transaction a markup or markdown in compliance with FINRA IM-2440.

 

In connection with the sale of the common stock or interests therein,
the Selling Stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the common stock in the course of hedging the positions they
assume.  The Selling Stockholders may
also sell shares of the common stock short and deliver these securities to
close out their short positions, or loan or pledge the common stock to
broker-dealers that in turn may sell these securities.  The Selling Stockholders may also enter into
option or other transactions with broker-dealers or other financial
institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of shares offered
by this prospectus, which shares such broker-dealer or other financial
institution may resell pursuant to this prospectus (as supplemented or amended
to reflect such transaction).

 

The Selling Stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be “underwriters” within the
meaning of the Securities Act in connection with such sales.  In such event, any commissions received by
such broker-dealers or agents and any profit on the resale of the shares
purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act.  Each Selling
Stockholder has informed the Company that it does not have any written or oral
agreement or understanding, directly or indirectly, with any person to
distribute the Common Stock. In no event shall any broker-dealer receive fees,
commissions and markups which, in the aggregate, would exceed eight percent
(8%).

 

The Company is required to pay certain fees and expenses incurred by
the Company incident to the registration of the shares.  The Company has agreed to indemnify the
Selling Stockholders against certain losses, claims, damages and liabilities,
including liabilities under the Securities Act.

 

Because Selling Stockholders may be deemed to be “underwriters” within
the meaning of the Securities Act, they will be subject to the prospectus
delivery requirements of the Securities Act including Rule 172 thereunder.  The Selling Stockholders have advised us that
there is no underwriter or coordinating broker acting in connection with the
proposed sale of the resale shares by the Selling Stockholders.

 

We agreed to keep this prospectus effective until all of the shares
continuing to have registration rights have been sold pursuant to this
prospectus or Rule 144 under the Securities Act or any other rule of
similar effect.  The resale shares will
be sold only through registered or licensed brokers or dealers if required
under applicable state securities laws. In addition, in certain states, the
resale shares of Common Stock covered hereby may not be sold unless they have
been registered or qualified for sale in the applicable state or an exemption
from the registration or qualification requirement is available and is complied
with.

 

3

 

Under applicable rules and regulations under the
Exchange Act, any person engaged in the distribution of the resale shares may
not simultaneously engage in market making activities with respect to the
common stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. 
In addition, the Selling Stockholders will be subject to applicable
provisions of the Exchange Act and the rules and regulations thereunder,
including Regulation M, which may limit the timing of purchases and sales of
shares of the common stock by the Selling Stockholders or any other
person.  We will make copies of this
prospectus available to the Selling Stockholders and have informed them of the
need to deliver a copy of this prospectus to each purchaser at or prior to the
time of the sale (including by compliance with Rule 172 under the
Securities Act).

 

4Exhibit 10.3

 

EXECUTION

 

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (“Agreement”) is entered into as of the 26th
day of March, 2009 by and between Clarient, Inc. a Delaware corporation
(the “Company”) and
                            (“Indemnitee”).

 

RECITALS

 

A.                                    The Company and
Indemnitee recognize the continued difficulty in obtaining liability insurance
for its directors, officers, employees, agents and fiduciaries, the significant
increases in the cost of such insurance and the general reductions in the
coverage of such insurance.

 

B.                                    The Company and
Indemnitee further recognize the substantial increase in corporate litigation
in general, subjecting directors, officers, employees, agents and fiduciaries
to expensive litigation risks at the same time as the availability and coverage
of liability insurance has been severely limited.

 

C.                                    Indemnitee does
not regard the current protection available as adequate under the present
circumstances, and Indemnitee and other directors, officers, employees, agents
and fiduciaries of the Company may not be willing to continue to serve in such
capacities without additional protection.

 

D.                                    Indemnitee is
an officer of the investment manager of Oak Investment Partners XII, Limited
Partnership, a Delaware limited partnership (the “Fund”), and has agreed
to serve as a director of the Company in connection with the Fund’s investment
in the Company.

 

E.                                      The Company
desires to attract and retain the services of highly qualified individuals,
such as Indemnitee, to serve the Company and, in part, in order to induce
Indemnitee to continue to provide services to the Company, wishes to provide
for the indemnification and advancing of expenses to Indemnitee to the maximum
extent permitted by law.

 

F.                                      In view of the
considerations set forth above, the Company desires that Indemnitee be
indemnified by the Company as set forth herein.

 

NOW,
THEREFORE, the Company and Indemnitee hereby agree as
follows:

 

1.                                      Indemnification.

 

1.1                               Indemnification of Expenses.  The Company shall indemnify
Indemnitee to the fullest extent permitted by law if Indemnitee was or is or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, any threatened, pending or
completed action, suit, proceeding or alternative dispute resolution mechanism,
or any hearing, inquiry or investigation, whether civil, criminal,
administrative, investigative or other (hereinafter a “Claim”) by reason
of (or arising in part out of) any event or occurrence related to the fact that
Indemnitee is or was a director, officer, employee, agent or fiduciary of the
Company, or any subsidiary of the Company, or is or was serving at the request
of the Company as a director, officer, employee, agent or fiduciary of another
corporation, partnership, joint venture, trust or other enterprise, or by
reason of any action or inaction on the part of Indemnitee while serving in
such capacity (hereinafter an “Indemnifiable Event”) against any and all
expenses (including reasonable attorneys’ fees and all other costs, expenses
and obligations incurred in connection with 

 

 

 

investigating, defending, being a witness in or participating
in (including on appeal), or preparing to defend, be a witness in or
participate in, any such action, suit, proceeding, alternative dispute
resolution mechanism, hearing, inquiry or investigation), judgments, fines,
penalties and amounts paid in settlement (if such settlement is approved in
advance by the Company, which approval shall not be unreasonably withheld) of
such Claim and any federal, state, local or foreign taxes imposed on Indemnitee
as a result of the actual or deemed receipt of any payments under this
Agreement (collectively, hereinafter “Expenses”), including all
interest, assessments and other charges paid or payable in connection with or
in respect of such Expenses.  Such
payment of Expenses shall be made by the Company as soon as practicable but in
any event no later than thirty (30) days after written demand by Indemnitee
therefor is presented to the Company, unless a determination is made by the
Reviewing Party within said thirty day period that Indemnitee is not entitled
to be indemnified under applicable law.

 

1.2                               Reviewing Party.  Notwithstanding the
foregoing, (i) the obligations of the Company under Section 1.1 shall
be subject to the condition that the Reviewing Party (as described in Section 9.5
hereof) shall not have determined (in a written opinion, in any case in which
the Independent Legal Counsel referred to in Section 1.3 hereof is
involved) that Indemnitee would not be permitted to be indemnified under
applicable law (i.e., the Reviewing Party shall have determined that Indemnitee
has met the applicable standards set forth in Section 145(a) and (b) of
the Delaware General Corporation Law (“DGCL”) or successor provisions),
and (ii) the obligation of the Company to make an advance payment of
Expenses to Indemnitee pursuant to Section 2.1 (an “Expense Advance”)
shall be subject to the condition that, if, when and to the extent that the
Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be
reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all
such amounts theretofore paid; provided, however, that if Indemnitee has
commenced or thereafter commences legal proceedings in a court of competent
jurisdiction to secure a determination that Indemnitee should be indemnified
under applicable law, any determination made by the Reviewing Party that
Indemnitee would not be permitted to be indemnified under applicable law shall
not be binding and 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 lapsed).  Indemnitee’s obligation to
reimburse the Company for any Expense Advance shall be unsecured and no
interest shall be charged thereon.  If
there has not been a Change in Control (as defined in Section 9.3 hereof),
the Reviewing Party shall be selected by the Company’s Board of Directors, and
if there has been such a Change in Control (other than a Change in Control
which has been approved by a majority of the Company’s Board of Directors who
were directors immediately prior to such Change in Control), the Reviewing
Party shall be the Independent Legal Counsel referred to in Section 1.3
hereof.  If there has been no
determination by the Reviewing Party or if the Reviewing Party determines that
Indemnitee substantively would not be permitted to be indemnified in whole or
in part under applicable law, Indemnitee shall have the right to commence
litigation seeking an initial determination by the court or challenging any such
determination by the Reviewing Party or any aspect thereof, including the legal
or factual bases therefor, and the Company hereby consents to service of
process and to appear in any such proceeding. 
Any determination by the Reviewing Party otherwise shall be conclusive
and binding on the Company and Indemnitee.

 

2

 

1.3                               Change in Control.  The Company agrees
that if there is a Change in Control of the Company then, with respect to all
matters thereafter arising concerning the rights of Indemnitees to payments of
Expenses and Expense Advances under this Agreement or any other agreement or
under the Company’s Certificate of Incorporation or Bylaws as now or hereafter
in effect, Independent Legal Counsel (as defined in Section 9.4 hereof)
shall be selected by the Company and approved by the Indemnitee (which approval
shall not be unreasonably withheld). 
Such counsel, among other things, shall render its written opinion to
the Company and Indemnitee as to whether and to what extent Indemnitee would be
permitted to be indemnified under applicable law and, subject to the other
provisions hereof, the Company and Indemnitee agree to abide by such
opinion.  The Company agrees to pay the
reasonable fees of the Independent Legal Counsel referred to above and to fully
indemnify such counsel against any and all expenses (including reasonable
attorneys’ fees), claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto.

 

1.4                               Mandatory Payment of Expenses.  Notwithstanding any
other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise, including, without limitation, the
dismissal of an action without prejudice, in defense of any action, suit,
proceeding, inquiry or investigation referred to in Section 1.1 hereof or
in the defense of any claim, issue or matter therein, Indemnitee shall be
indemnified against all Expenses incurred by Indemnitee in connection with such
successful claims, issues or matters, but only to the extent permitted to be so
indemnified under applicable law (i.e., only to the extent such Expenses or
portions thereof are indemnifiable pursuant to the applicable provisions of Section 145(a) or
(b) of the DGCL or successor provisions).

 

2.                                      Expenses; Indemnification Procedure.

 

2.1                               Advancement of Expenses.  The Company shall
advance all Expenses incurred by Indemnitee. 
The advances to be made hereunder shall be paid by the Company to
Indemnitee as soon as practicable but in any event no later than thirty (30)
days after written demand by Indemnitee therefor to the Company.  Such demand or demands shall reasonably
evidence the Expenses incurred by Indemnitee and shall include or be preceded
or accompanied by a written undertaking by or on behalf of Indemnitee to repay
any Expenses advanced if it shall ultimately be determined that Indemnitee is
not entitled to be indemnified against such Expenses.  If the Company makes an advance of Expenses
pursuant to this Section 2.1, the Company shall be subrogated to every
right of recovery that Indemnitee may have against any insurance carrier from
whom the Company has purchased insurance for such purpose.

 

2.2                               Notice/Cooperation by Indemnitee.  Indemnitee shall, as
a condition precedent to Indemnitee’s right to be indemnified under this
Agreement, 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.  Notice to the
Company shall be directed to the Chief Executive Officer of the Company at the
address shown on the signature page of this Agreement (or such other
address as the Company shall designate in writing to Indemnitee).  In addition, Indemnitee shall give the
Company such information and cooperation as it may reasonably require and as
shall be within Indemnitee’s power; provided, however, the Indemnitee shall be
able to limit such information and such cooperation to the extent necessary to
protect the Indemnitee’s Fifth Amendment rights in a criminal proceeding.

 

3

 

2.3                               No Presumptions; Burden of Proof.  For purposes of this
Agreement, the termination of any Claim by judgment, order, settlement (whether
with or without court approval) or 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.  In addition, neither the
failure of the Reviewing Party to have made a determination as to whether
Indemnitee has met any particular standard of conduct or had any particular
belief, nor an actual determination by the Reviewing Party that Indemnitee has
not met such standard of conduct or did not have such belief, prior to the
commencement of legal proceedings by Indemnitee to secure a judicial
determination that Indemnitee should be indemnified under applicable law, shall
be a defense to Indemnitee’s claim or create a presumption that Indemnitee has
not met any particular standard of conduct or did not have any particular
belief.  In connection with any
determination by the Reviewing Party or otherwise as to whether Indemnitee is
entitled to be indemnified hereunder, the burden of proof shall be on the
Company to establish that Indemnitee is not so entitled.

 

2.4                               Notice to Insurers.  If, at the time of
the receipt by the Company of a notice of a Claim pursuant to Section 2.2
hereof, the Company has liability insurance in effect which may cover such
Claim, the Company shall give prompt notice of the commencement of such Claim
to the insurers in accordance with the procedures set forth in the respective
policies.  The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of Indemnitee, all amounts payable as a result of such action, suit,
proceeding, inquiry or investigation in accordance with the terms of such
policies.

 

2.5                               Selection of Counsel.  In the event the
Company shall be obligated hereunder to pay the Expenses of any Claim, the
Company shall be entitled to assume the defense of such Claim with counsel
approved by Indemnitee, which approval shall not be unreasonably withheld, upon
the delivery to Indemnitee of written notice of its election so to do.  After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees
of counsel subsequently incurred by Indemnitee with respect to the same Claim;
provided that, (i) Indemnitee shall have the right to employ Indemnitee’s
counsel in any such Claim at Indemnitee expense and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized by the
Company, (B) Indemnitee shall have reasonably concluded that there is a
conflict of interest between the Company and Indemnitee in the conduct of any
such defense, or (C) the Company shall not continue to retain such counsel
to defend such Claim, then the fees and expenses of Indemnitee counsel shall be
at the expense of the Company.  The
Company shall have the right to conduct such defense as it sees fit in its sole
discretion, including the right to settle any claim against Indemnitee without
the consent of the Indemnitee.

 

3.                                      Additional Indemnification Rights;
Nonexclusivity.

 

3.1                               Scope.  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, the Company’s Certificate of Incorporation, the Company’s Bylaws or
by statute.  In the event of any change
after the date of this Agreement in any applicable law, statute or rule which
expands the right of a Delaware corporation to indemnify a member of its board
of directors or an officer, employee, agent or fiduciary, it is the intent of
the parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits afforded by such change.  In the
event of any change in any applicable law, statute or rule which narrows
the right of a Delaware corporation to indemnify a member of its board of
directors or an officer, employee, agent or fiduciary, such change, 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 except as set forth in Section 8.1 hereof.

 

4

 

3.2                               Nonexclusivity.  The indemnification
provided by this Agreement shall be in addition to any rights to which
Indemnitee may be entitled under the Company’s Certificate of Incorporation,
its Bylaws, any agreement, any vote of stockholders or disinterested directors,
the DGCL, or otherwise.  The
indemnification provided under this Agreement shall continue as to Indemnitee
for any action Indemnitee took or did not take while serving in an indemnified
capacity even though Indemnitee may have ceased to serve in such capacity.

 

4.                                      No Duplication of Payments.  The Company shall
not be liable under this Agreement to make any payment in connection with any
Claim made against Indemnitee to the extent Indemnitee has otherwise actually
received payment (under any insurance policy, Certificate of Incorporation,
Bylaw or otherwise) of the amounts otherwise indemnifiable hereunder.  The Company acknowledges and agrees that while
under certain circumstances Indemnitee may be entitled to indemnification and
expense advancement and/or reimbursement from the Fund and/or its general
partner or other affiliates thereof (collectively, “Fund Related Parties”)
in connection with Claims made against Indemnitee, the obligations of the
Company hereunder with respect to any Claim are primary to any obligations of
any Fund Related Party with respect thereto and Indemnitee will not be
obligated to, and has no right to, seek indemnification from or expense
advancements or reimbursement by any Fund Related Party with respect to any
Claim unless and until the Company shall have fulfilled its obligations
hereunder, including with respect to any insurance provided pursuant hereto or
otherwise.  In addition, the Company, on
behalf of itself and any insurer’s providing liability insurance as provided in
Section 7 hereof, hereby waives any rights of contribution from or
against each and every Fund Related Party with respect to any Claim.  Each of the Fund Related Parties is an
intended third party beneficiary of this Agreement and the Company agrees to
take such further action as may be requested by any Fund Related Party to
effectuate the contractual arrangement between the Company and the Fund Related
Parties as set forth herein.

 

5.                                      Partial Indemnification.  If Indemnitee is
entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of Expenses incurred in connection with any
Claim, but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion of such Expenses to which
Indemnitee is entitled.

 

6.                                      Mutual Acknowledgement.  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, agents or fiduciaries under this Agreement or
otherwise.  Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future
to undertake with the Securities and Exchange Commission 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.

 

7.                                      Liability Insurance.  To the extent the
Company maintains liability insurance applicable to directors, officers,
employees, agents or fiduciaries, Indemnitee shall be covered by such policies
in such a manner as to provide Indemnitee the same rights and benefits as are
accorded to the most favorably insured of the Company’s directors, if
Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a
director of the Company but is an officer; or of the Company’s key employees,
agents or fiduciaries, if Indemnitee is not an officer or director but is a key
employee, agent or fiduciary.

 

5

 

8.                                      Exceptions.  Any other provision
herein to the contrary notwithstanding, the Company shall not be obligated
pursuant to the terms of this Agreement:

 

8.1                               Excluded Action or Omissions.  To indemnify
Indemnitee for Indemnitee’s acts, omissions or transactions (which acts,
omissions or transactions shall have been acknowledged and not disputed by the
Indemnitee or shall have been determined by a court of competent jurisdiction)
from which Indemnitee or the Indemnitee may not be relieved of liability under
applicable law;

 

8.2                               Claims Initiated by Indemnitee.  To indemnify or
advance expenses to Indemnitee with respect to Claims initiated or brought
voluntarily by Indemnitee and not by way of defense, except (i) with
respect to actions or proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other agreement or insurance policy
or under the Company’s Certificate of Incorporation or Bylaws now or hereafter
in effect relating to Claims for Indemnifiable Events, (ii) in specific
cases if the Company’s Board of Directors has approved the initiation or
bringing of such Claim, or (iii) as otherwise required under Section 145
of the DGCL, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advance expense payment or insurance
recovery, as the case may be;

 

8.3                               Lack of Good Faith.  To indemnify
Indemnitee for any expenses incurred by Indemnitee with respect to any
proceeding instituted by Indemnitee to enforce or interpret this Agreement, if
a court of competent jurisdiction determines that each of the material
assertions made by Indemnitee in such proceeding was not made in good faith or
was frivolous;

 

8.4                               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 (the “Exchange Act”), or
any similar successor statute;

 

8.5                               Fraudulent Conduct.  To indemnify Indemnitee for any Expenses,
judgments, fines or penalties resulting from Indemnitee’s conduct which is
finally adjudged to have been willful misconduct or knowingly fraudulent; or

 

8.6                               Unlawful Payment.  If a court of
competent jurisdiction finally determines that such payment hereunder is
unlawful.

 

9.                                      Construction of Certain Phrases.

 

9.1                               Company.  References to “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, agents or fiduciaries, so that if
Indemnitee is or was a director, officer, employee, agent or fiduciary of such
constituent corporation, or is or was serving at the request of such
constituent corporation as a director, officer, employee, agent or fiduciary of
another corporation, partnership, joint venture, employee benefit plan, 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.

 

6

 

9.2                               Other Enterprises.  References to “other
enterprises” shall include employee benefit plans; references to “fines” shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to “serving at the request of the Company” shall
include any service as a director, officer, employee, agent or fiduciary of the
Company which imposes duties on, or involves services by, such director,
officer, employee, agent or fiduciary with respect to an employee benefit plan,
its participants or its beneficiaries; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed to the best interests of the
Company” as referred to in this Agreement.

 

9.3                               Change in Control.  A “Change in Control”
shall be deemed to have occurred if after the date hereof:

 

(i)                                     any person other than the Fund becomes the “beneficial owner”
(as that term is defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities representing fifty percent (50%) or more of the
total voting power of the Company’s then-outstanding voting securities;

 

(ii)                                  during any period of two (2) consecutive years,
individuals who, at the beginning of such period constitute the board, together
with any new director whose election by the board or nomination for election by
the Company’s stockholders was approved by a vote of at least two-thirds (2/3)
of the directors then in office either who were directors at the beginning of
the two-year period, or whose election or nomination was previously so
approved, cease for any reason to constitute a majority of the board;

 

(iii)                               the stockholders of the Company approve a merger or
consolidation of the Company with any other company, other than a merger or
consolidation that would result in the voting securities of the Company
outstanding immediately before such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least fifty-one percent (51%) 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

 

(iv)                              the stockholders of the Company approve a plan of complete
liquidation of the Company, or an agreement for the sale or disposition by the
Company (whether in one transaction or a series of transactions) of all or
substantially all of the Company’s assets.

 

9.4                               Independent Legal Counsel.  “Independent Legal
Counsel” shall mean an attorney or firm of attorneys, selected in accordance
with the provisions of Section 1.3 hereof, who shall not have otherwise
performed services for the Company or Indemnitee within the last three years
(other than with respect to matters concerning the rights of Indemnitee under
this Agreement, or of other indemnitees under similar indemnity agreements).

 

9.5                               Reviewing Party.  A “Reviewing Party”
shall mean any appropriate person or body consisting of a member or members of
the Company’s Board of Directors or any other person or body appointed by the
Company’s Board of Directors who is not a party to the particular Claim for
which Indemnitee is seeking indemnification, or Independent Legal Counsel.

 

7

 

10.                               Counterparts.  This Agreement may
be executed in one or more counterparts, each of which shall constitute an
original.

 

11.                               Binding Effect; Successors and Assigns.  This Agreement shall
be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors, assigns, 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, 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.  This Agreement shall
continue in effect with respect to Claims relating to Indemnifiable Events
regardless of whether Indemnitee continues to serve as a director, officer,
employee, agent or fiduciary of the Company or of any other enterprise at the
Company’s request.

 

12.                               Attorneys’ Fees.  In the event that
any action is instituted by Indemnitee under this Agreement or under any
liability insurance policies maintained by the Company to enforce or interpret
any of the terms hereof or thereof, Indemnitee shall be entitled to be paid all
Expenses incurred by Indemnitee with respect to such action, regardless of
whether Indemnitee is ultimately successful in such action, and shall be
entitled to the advancement of Expenses with respect to such action, unless, as
a part of such action, a court of competent jurisdiction over such action
determines that each of the material assertions made by Indemnitee as a basis
for such action was not made in good faith or was frivolous.  In the event of an action instituted by or in
the name of the Company under this Agreement to enforce or interpret any of the
terms of this Agreement, Indemnitee shall be entitled to be paid all Expenses
incurred by Indemnitee in defense of such action (including costs and expenses
incurred with respect to Indemnitee counterclaims and cross-claims made in such
action), and shall be entitled to the advancement of Expenses with respect to
such action, unless, as a part of such action, a court having jurisdiction over
such action determines that each of Indemnitee material defenses to such action
was made in bad faith or was frivolous.

 

13.                               Notice.  All notices and other communications required
or permitted hereunder shall be in writing, shall be effective when given, and
shall in any event be deemed to be given (a) five (5) days after
deposit with the U.S. Postal Service or other applicable postal service, if
delivered by first class mail, postage prepaid, (b) upon delivery, if
delivered by hand, (c) one business day after the business day of deposit
with Federal Express or similar overnight courier, freight prepaid, or (d) one
day after the business day of delivery by facsimile transmission, if delivered
by facsimile transmission, with copy by first class mail, postage prepaid, and
shall be addressed if to Indemnitee, at the Indemnitee address as set forth
beneath Indemnitee signatures to this Agreement and if to the Company at the
address of its principal corporate offices (attention:  Secretary) or at such other address as such
party may designate by ten (10) days’ advance written notice to the other
party hereto.

 

8

 

14.                               Consent to Jurisdiction.  The Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any
action or proceeding arising out of or in connection with this Agreement shall
be brought only in the Chancery Court of the State of Delaware (the “Delaware
Court”), and not in any other state or federal court in the United States
of America or any court in any other country, (ii) consent to submit to
the exclusive jurisdiction of the Delaware Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (iii) waive
any objection to the laying of venue of any such action or proceeding in the
Delaware Court and (iv) waive, and agree not to plead or to make, any
claim that any such action or proceeding brought in the Delaware Court has been
brought in an improper or inconvenient forum.

 

15.                               Severability.  The provisions of
this Agreement shall be severable in the event that any of the provisions
hereof (including any provision within a single section, paragraph or sentence)
are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the
fullest extent permitted by law. 
Furthermore, to the fullest extent possible, the provisions of this
Agreement (including, without limitations, each portion of this Agreement
containing any provision held to be invalid, void or otherwise unenforceable,
that is not itself invalid, void or unenforceable) shall be construed so as to
give effect to the intent manifested by the provision held invalid, illegal or
unenforceable.

 

16.                               Choice of Law.  This Agreement shall
be governed by and its provisions construed and enforced in accordance with the
laws of the State of Delaware, as applied to contracts between Delaware
residents, entered into and to be performed entirely within the State of
Delaware, without regard to the conflict of laws principles thereof.

 

17.                               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 documents required and shall do all acts that may be necessary to secure
such rights and to enable the Company effectively to bring suit to enforce such
rights; provided, however that the
Company expressly waives any rights of subrogation with respect to any rights
of recovery of Indemnitee against any Fund Related Party or any insurer
providing liability insurance in respect of or in support of any such
obligations of a Fund Related Party.

 

18.                               Amendment and Termination.  No supplement,
amendment, modification, termination or cancellation of this Agreement shall be
effective unless it is in writing signed by both the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

19.                               Integration and Entire Agreement.  This Agreement sets
forth the entire understanding between the parties hereto and supersedes and
merges all previous written and oral negotiations, commitments, understandings
and agreements relating to the subject matter hereof between the parties
hereto.

 

20.                               No Construction as Employment Agreement.  Nothing contained in
this Agreement shall be construed as giving Indemnitee any right to be retained
in the employ of the Company or any of its subsidiaries.

 

21.                               Headings.  The headings of the sections of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

[Remainder of Page Intentionally
Left Blank]

 

9

 

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

 

	
  CLARIENT, INC.

  	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]