Document:

EX-10.3

 Exhibit 10.3 
  

 
  

									
	ARBEITSVERTRAG	 		 	EMPLOYMENT CONTRACT
	  
 Zwischen

 
	 		 	  
 Between

 

	HeartWare GmbH	 		 	HeartWare GmbH
	Kugelfangtrift 10	 		 	Kugelfangtrift 10
	30179 Hannover	 		 	30179 Hannover
	  
 (im folgenden “Gesellschaft”
genannt)
	 		 	  
 (hereinafter referred to as
“Company”)

	  
 und

 
	 		 	  
 and

 

	 Frau
 Dr. Katrin Leadley

Karwendelstr. 15
 82152 Krailling Deutschland

 
	 		 	 Mrs.
 Katrin Leadley, MD

Karwendelstr. 15
 82152 Krailling, Germany

 

	 (im folgenden “Mitarbeiterin” genannt)

 
	 		 	 (hereinafter referred to as “Employee”)

 

	wird folgender Arbeitsvertrag geschlossen:	 		 	the following Employment Contract is concluded:
	  
 § 1
	 		 	  
 § 1

	 Beginn und Dauer des

Arbeitsverhältnisses
	 		 	 Commencement and Duration

of Employment Contract
  

	Das Arbeitsverhältnis beginnt zum 01.09.2014 und besteht unbefristet.	 		 	The Employment Contract commences on 01st September 2014 and continues for an unlimited period.
	  
 § 2
	 		 	  
 § 2

	 Grundlagen des Arbeitsverhältnisses

 
	 		 	 Basis of Employment

 

	1.	 	 Die Mitarbeiterin wird von zu Hause aus tätig werden. Es wird erwartet und ist nach dem Wesen dieses Vertrages erforderlich, dass die
Mitarbeiterin regelmäßig Dienstreisen unternimmt und bei Bedarf an anderen Orten innerhalb Deutschlands, aber auch im europäischen und außereuropäischen Ausland tätig wird.

 
	 		 	1.	 	 The Employee will basically perform her employment duties from her home. However, it is expected and implied in this contract that the
Employee travels for work purposes on a regular basis and will also work at other places within Germany as well as in foreign countries within or outside Europe.
  

	2.	 	Für das Arbeitsverhältnis gelten die betrieblichen Regelungen und ergänzend die allgemeinen gesetzlichen Vorschriften nach deutschem Recht in der jeweils gültigen Fassung, soweit in diesem Vertrag nichts anderes
vereinbart ist.	 		 	2.	 	The Company arrangements as far as work is concerned as well as the valid statutory provisions according to German law shall be part of this contract, unless otherwise stipulated.

  
   

 
  

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
	 3.      
	 	Die Mitarbeiterin wird der Gesellschaft ihre ganze Arbeitskraft widmen und ihre Interessen wahren. Die Übernahme einer entgeltlichen und unentgeltlichen Nebentätigkeit im beruflichen Bereich bedarf der vorherigen
schriftlichen Zustimmung der Gesellschaft. Die Gesellschaft wird ihre Zustimmung unverzüglich erteilen, sofern nicht berechtigte Interessen entgegenstehen.	 		 	3.	 	The Employee will devote her entire working hours to take care of the Company’s interest. Any additional professional occupation, whether paid or unpaid, requires the previous written consent of the Company. The Company shall
provide its consent immediately unless there is contrary legitimate interest.
			
	§ 3	 		 	§ 3
	Tätigkeit	 		 	Job Description
					
	 1.      
	 	Die Mitarbeiterin wird eingestellt als “Chief Medical Officer” (“CMO”).	 		 	1.	 	The Employee shall be engaged as Chief Medical Officer (“CMO”).
					
	 2.      
	 	Die Gesellschaft behält sich vor, der Mitarbeiterin andere gleichwertige und zumutbare Aufgaben zuzuweisen, die ihren Vorkenntnissen und Fähigkeiten entsprechen. Macht die Gesellschaft hiervon Gebrauch, so ist sie
verpflichtet, die bisherige Vergütung weiter zu zahlen.	 		 	2.	 	The Company reserves the right to engage the Employee in other equal and reasonable activities which correspond with her previous knowledge and capabilities. Should the Company avail itself of this right, it shall continue to pay
the same amount of salary as beforehand.
			
	§ 4	 		 	§ 4
	Arbeitszeit	 		 	Working Hours
					
	 1.      
	 	Die regelmäßige Arbeitszeit beträgt 40 Stunden wöchentlich.	 		 	1.	 	The regular working hours shall be 40 hours per week.
					
	 2.      
	 	Die Verteilung der Arbeitszeit richtet sich nach den betrieblichen Erfordernissen.	 		 	2.	 	The working time shall be distributed in accordance with the requirements of the business.
					
	 3.      
	 	Soweit es aus dienstlichen Gründen notwendig ist, verpflichtet sich die Mitarbeiterin, Mehrarbeit im Rahmen der gesetzlichen Bestimmungen zu leisten.	 		 	3.	 	The Employee shall be obliged to work overtime insofar as this is legally permissible.

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
		 	 § 5

Vergütung
	 		 		 	 § 5

Remuneration

					
	 1.      
	 	Die Mitarbeiterin erhält ein Bruttogehalt in Höhe von € 276.000,00 jährlich, welches in 12 gleichen monatlichen Teilen in Höhe von € 23.000,00 ausgezahlt wird.	 		 	1.	 	The Employee shall receive an annual gross salary of € 276,000.00, which will be paid in twelve equal monthly installments in an amount of € 23.000,00.
					
	 2.      
	 	Darüber hinausgehende Gratifikationen, Leistungen oder sonstige Sonderzahlungen sind freiwillig und begründen auch bei wiederholter Zahlung keine Verpflichtung der Gesellschaft für die Zukunft. Dieser
Freiwilligkeitsvorbehalt gilt nicht für Bonuszahlung nach Ziffer 3 dieser Vorschrift.	 		 	2.	 	Further bonuses or other extra payments are without prejudice for the future and do not constitute any obligation whatsoever on behalf of the Company. This shall not apply to the bonus payment under Paragraph 3.
					
	 3.      
	 	Die Mitarbeiterin nimmt nach den folgenden Maßgaben am Bonusprogramm der Gesellschaft teil:	 		 	3.	 	The Employee shall under the following terms and conditions participate in the Company’s bonus program:
					
	 •     
	 	In Abhängigkeit ihrer persönlichen Leistung und dem Gesamtergebnis der Gesellschaft innerhalb eines Kalenderjahres (“Bemessungszeitraum”) erhält die Mitarbeiterin eine jährliche Bonuszahlung.	 		 	•	 	Depending on her individual performance and on the performance of the Company within a calendar year (“Assessment Period”) the Employee shall receive an annual bonus payment.
					
	 •     
	 	Beginnt das Arbeitsverhältnis nach dem Beginn des Bemessungszeitraums, wird eine etwaige Bonuszahlung anteilig ausgekehrt. Eine Bonuszahlung erfolgt nicht, wenn das Arbeitsverhältnis nach dem 30.09. beginnt.	 		 	•	 	If the employment relationship commences after the beginning of the Assessment Period, bonus payments (if any) shall be pro-rated. No bonus payments shall be made if the employment relationship commences after 30
September.
					
	 •     
	 	Die Höhe der Bonuszahlung wird nach Wahl der Gesellschaft festgelegt werden. Als Target gelten 40% der jährlichen Brutto-Vergütung gemäß § 5 Ziffer 1.	 		 	•	 	The amount of the bonus payment shall be determined at the Company’s discretion and shall be targeted at 40 % of the annual gross remuneration under Section 5,
Paragraph 1.

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
	•	 	Etwaige Bonuszahlungen erfolgen innerhalb des ersten Quartals nach dem Ende des Bemessungszeitraumes (Auszahlungszeitpunkt).	 		 	•	 	The bonus payment – if any - shall be made within the first quarter after the end of the Assessment Period (Payment Date)
					
	•	 	Es besteht kein Anspruch auf eine Bonuszahlung, wenn das Arbeitsverhältnis im Auszahlungszeitpunkt nicht mehr besteht. Dieses gilt nicht, sofern das Anstellungsverhältnis endete, die Mitarbeiterin aber bei der HeartWare,
Inc. (“HeartWare”) in den Vereinigten Staaten eine Anstellung aufgenommen hat . Anteilige Zahlungen erfolgen nicht.	 		 	•	 	The Employee is not entitled to a bonus payment if the employment relationship has ended before the Payment Date, unless the employment relationship has ended and Employee has commenced employment with HeartWare, Inc. in the United
States (“HeartWare”). There shall be no pro-rata payments.
					
	•	 	Ein Anspruch besteht weiterhin nicht, wenn sich das Arbeitsverhältnis zum Auszahlungszeitpunkt in einem gekündigten Zustand befindet. Dies gilt nicht, wenn die Kündigung aus Gründen erfolgt, die der Mitarbeiter
nicht zu vertreten hat, insbesondere aus betriebsbedingten Gründen.	 		 	•	 	Furthermore the Employee is not entitled to a bonus payment if the employment relationship has been terminated on the Payment Date, unless the termination was caused by circumstances beyond the Employee’s influence, e.g. urgent
operational reasons.
				
	4. Das Board der HeartWare International, Inc. hat bereits durch Beschluss der Gewährung von 15.000 “Restricted Stock Units” zugestimmt. Restricted Stock Units stellen die Verpflichtung der Gesellschaft
dar, an die Mitarbeiterin die entsprechende Anzahl von Aktien bei Erreichen bestimmter Auflagen und Bedingungen auszugeben. Die Restricted Stock Units würden sodann in vier gleichen Tranchen jeweils im Zeitpunkt der ersten vier Jahrestage der
Gewährung der Restricted Stock Units (“Datum der Gewährung”) und gemäß der von der Geschäftsführung nach ihrem eigenen Ermessen erstellten sonstigen Auflagen und Bedingungen sowie im Einklang mit der
bisherigen Übung ausgegeben. Die Ausgabe der Restricted Stock Units ist davon abhängig, dass die Mitarbeiterin jeweils im Zeitpunkt der vorbezeichneten Jahrestage bei der Gesellschaft oder HeartWare, Inc. beschäftigt ist. Das
“Datum derGewährung” ist das Datum des Beginns derBeschäftigung der Mitarbeiterin bei der Gesellschaft.	 		 	 4.
	 	The Board of Directors of HeartWare International, Inc. (the “Board”) has already approved to the grant of 15,000 restricted stock units to the Employee. Restricted stock units represent the Company’s commitment
to issue to the employee that number of shares of common stock upon the satisfaction of specified terms and conditions. The restricted stock units would vest in four equal installments on each of the first four anniversaries of the date the
restricted stock units are granted (“Grant Date”) and on such other terms and conditions as the Board shall determine in its sole discretion at the time of grant generally consistent with past practice. Vesting of restricted stock
units are subject to the employee continuing to be employed by the Company or HeartWare, as of an anniversary date. The “Grant Date” will be the commencement date of the Employee with the
Company.

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
	5.	 	Geleistete Mehrarbeit ist mit dem Gehalt abgegolten, soweit die Mehrarbeit nicht mehr als 25 % der regelmäßigen Arbeitszeit gemäß § 4 Abs. 1 übersteigt. Darüber hinausgehende Mehrarbeit wird nur
vergütet, wenn die Mehrarbeit von der Gesellschaft angeordnet oder ausdrücklich genehmigt wurde.	 		 	5.	 	The remuneration includes salary for overtime as far as the overtime does not exceed 25 % of the regular working hours according to sec. 4 para. 1. Overtime beyond this level will only be paid for if the overtime is directed or
approved by the Company.
				
	§ 6	 		 		 	§ 6
	Auslagenersatz	 		 		 	Expenses
			
	Auslagen, die der Mitarbeiterin im Rahmen ihrer dienstlichen Tätigkeit für die Gesellschaft entstehen, werden von der Gesellschaft im Einklang mit der jeweils gültigen Fassung der Reise- und
Kostenerstattungsrichtlinie der Gesellschaft nach Vorlage von Belegen ersetzt. Die Gesellschaft entscheidet darüber, ob die Auslagen im Rahmen der dienstlichen Tätigkeit der Mitarbeiterin entstanden sind. Die Mitarbeiterin hat die Belege
für ihre Ausgaben bis zum Ende des Kalendermonats, in dem die Ausgaben entstanden sind, der Gesellschaft vorzulegen.	 		 	Expenses which arise in the course of the Employee’s execution of her duties for the Company will be compensated by the Company on the basis of supporting documents consistent with the Company’s travel and
expense reimbursement policy in effect at the time. It is at the Company’s discretion to decide whether or not the expenses arose in the course of the Employee’s execution of her duties. The Employee is obliged to present the documentary
proof of her expenses to the Company prior to the end of the month in which they arose.
			
	 § 7

Arbeitsverhinderung
	 		 	 § 7

Inability to work

					
	1.	 	Wird die Mitarbeiterin durch Arbeitsunfähigkeit infolge Krankheit, Unfall oder einem sonstigen Grund	 		 	1.	 	In the event that the Employee is unable to perform her work due to sickness, accidents or any other reason without any

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
		 	vorübergehend an ihrer Dienstleistung gehindert, ohne dass sie hieran ein Verschulden trifft, so wird das Gehalt nach den gesetzlichen Bestimmungen weitergezahlt.	 		 		 	fault on their part, the Company shall continue to pay the remuneration in accordance with German statutory law.
					
	2.	 	Bei Arbeitsverhinderung ist die Gesellschaft unverzüglich über die Gründe und die voraussichtliche Dauer zu unterrichten.	 		 	2.	 	The Employee shall be obliged to inform the Company of any inability to work and the expected duration of such an inability. The Employee shall give reasons for the inability to work.
					
	3.	 	Ist die Arbeitsverhinderung durch Krankheit verursacht, so ist die Arbeitsunfähigkeit außerdem spätestens am dritten Kalendertag durch Vorlage einer ärztlichen Bescheinigung nachzuweisen. Dauert die
Arbeitsunfähigkeit länger als in der Bescheinigung angegeben, so ist innerhalb von drei Tagen eine neue Bescheinigung einzureichen.	 		 	3.	 	In the case of sickness, the Employee shall be obliged to present a doctor’s certificate of inability to work giving the probable duration thereof before the end of the third calendar day from the beginning of inability to
work. Should the inability to work last longer than given in the doctor’s certificate a new doctor’s certificate shall be submitted within three days.
			
	 § 8

Urlaub
	 		 	 § 8

Vacation

					
	1.	 	Die Mitarbeiterin hat einen Anspruch auf einen Erholungsurlaub von 30 Arbeitstagen je Kalenderjahr.	 		 	1.	 	The Employee will be entitled to 30 days vacation for each calendar year.
					
	2.	 	Zeitpunkt und Dauer des Urlaubs sind mit dem zuständigen Vorgesetzten abzustimmen.	 		 	2.	 	The date and the duration of the vacation are to be agreed upon with the Company’s management.
					
	3.	 	Der Urlaub ist im Urlaubsjahr = Kalenderjahr zu nehmen. Er erlischt nach Ablauf des Kalenderjahres, es sei denn, dass er aus betrieblichen Gründen, mit Zustimmung der Gesellschaft oder wegen Krankheit nicht genommen werden
konnte. Bei Beendigung des Arbeitsverhältnisses erfolgt eine etwaige Urlaubsabgeltung nur bis zur Höhe des gesetzlichen Mindesturlaubs.	 		 	3.	 	The vacation is to be taken within the calendar year. After the end of the calendar year the Employee will not be entitled to carry over vacation days unless it could not be taken due to sickness or for Company reasons approved by
the Company prior to year-end. If the employment relationship ends the Employee shall be entitled to payments for accrued vacation (if any) only up to the statutory minimum vacation
entitlement.

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
	 § 9

Verschwiegenheitspflicht
	 		 	 § 9

Secrecy

					
	1.	 	Die Mitarbeiterin verpflichtet sich, über alle nicht allgemein bekannten Firmenangelegenheiten, die der Mitarbeiterin anvertraut wurden oder die ihr anderweitig bekannt geworden sind, gegenüber dritten Personen
Verschwiegenheit zu wahren. Diese Schweigepflicht erstreckt sich insbesondere auf Angelegenheiten anderer Firmen, mit denen die Gesellschaft wirtschaftlich oder organisatorisch verbunden ist, auf Informationen betreffend die Geschäftsstruktur,
die Kunden- und Lieferantenbeziehungen, technisches Know-How und/oder andere Marketing, Handels- oder technische Informationen. Diese Verpflichtung dauert über das Ende des Arbeitsverhältnisses hinaus fort.	 		 	1.	 	The Employee shall not disclose to any third party, any confidential, technical or other business information which has been entrusted to Employee, or which has otherwise become known to Employee and which relates to the Company or
its business. In particular, no information may be disclosed concerning the matters of affiliated companies, the organization of the business, relationships with customers and suppliers and the technical know-how as well as other marketing,
commercial and technical information related to the Company. This obligation shall not expire upon termination of employment but shall remain in force.
					
	2.	 	Geschäftliche Protokolle und Berichte jeder Art, einschließlich persönlicher Notizen betreffend geschäftliche Aktivitäten und sonstiger Geschäfte sind sorgfältig zu behandeln und unter Verschluss
zu halten und nur für geschäftliche Zwecke zu verwenden. Es ist nicht gestattet, Kopien oder Abschriften, auch nicht auszugsweise, von Zeichnungen, Berechnungen, Statistiken und dergleichen oder von anderen geschäftlichen Protokollen
oder dergleichen anzufertigen, sofern dies nicht für geschäftliche Zwecke erfolgt.	 		 	2.	 	Business record of any kind, including private notes concerning Company affairs and activities, shall be carefully kept, maintained as confidential and shall be used only for business purposes. It is not permitted to make copies or
extracts or duplicates of drawings, calculations, statistics and the like of any other business records or purposes other than for the Company’s business.
					
	3.	 	Bei Beendigung des Dienstverhältnisses ist die Mitarbeiterin verpflichtet, alle Gegenstände, die der Gesellschaft gehören und alle Schriftstücke, Korrespondenzen, Aufzeichnungen, Computerdateien, Entwürfe,
Kopien und dergleichen, die die Angelegenheiten der Gesellschaft betreffen und sich noch in ihrem Besitz befinden, unverzüglich an die Gesellschaft herauszugeben. Ein Zurückbehaltungsrecht oder das Recht Kopien anzufertigen, besteht
nicht.	 		 	3.	 	Upon termination of employment, the Employee shall immediately return to the Company all things belonging to the Company and all documents, correspondence, notes, business records, computer data, drafts, copies and similar records
in her possession and concerning the business of the Company. The Employee does not have a right to withhold such records or to make or to retain copies.

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
	 § 10

Kündigung des

Arbeitsverhältnisses
	 		 	 § 10

Termination of the Employment

Relationship

					
	1.	 	Dieser Vertrag kann von beiden Parteien mit einer Frist von 3 Monaten zum Monatsende ordentlich gekündigt werden.	 		 	1.	 	This agreement can be terminated by both parties with an ordinary termination period of 3 months to the end of a month.
					
		 	Das Recht beider Parteien zur ausserordentlichen Kündigung aus wichtigem Grund bleibt hiervon unberührt. Zwingende gesetzliche Kündigungsfristen, die für Kündigungen durch die Gesellschaft gelten, gelten in
gleicher Weise für Kündigungen durch den Mitarbeiter.	 		 		 	This does not affect the right of both parties to terminate this contract for good cause. Terms of notice, which are compulsory as a matter of law applicable to the notice of termination by the Company shall be compulsory with
respect to the notice of termination by the Employee as well.
					
		 	Im Falle der Kündigung behält sich die Gesellschaft das Recht vor, den Mitarbeiter mit sofortiger Wirkung unter Fortzahlung seines Gehalts freizustellen.	 		 		 	Should notice of termination be given, the Company shall have the right to release the Employee with immediate effect. Employee’s claim to salary for the notice period shall not be affected by such suspension.
					
	2.	 	 Sollte die Mitarbeiterin keine Erlaubnis zur Arbeit in den Vereinigten Staaten, die ihr die bereits geplante Arbeitsaufnahme bei der
HeartWare Inc. ermöglicht, zum oder vor dem 01.10.2015 erhalten, steht beiden Parteien ein außerordentliches Kündigungsrecht mit einer Frist von drei Monaten zum Ende eines Kalendermonats zu.
	 		 	2.	 	 In case the employee does not obtain authorization to work in the United States on or before October 1, 2015 to allow her to commence the
already planned work with HeartWare Inc. in the USA both parties have the right, to terminate this Employment extraordinary with a notice period of three months to the end of the calendar month.

					
	3.	 	Die Kündigung bedarf der Schriftform.	 		 	3.	 	 Notice of termination shall be given in

writing.

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
	4.	 	Das Arbeitsverhältnis endet spätestens am Schluss des Monats, in dem die Mitarbeiterin das gesetzliche Rentenalter erreicht, ohne dass es einer Kündigung bedarf.	 		 	4.	 	The employment relationship shall terminate at the end of the month in which the Employee reaches the statutory pension age without termination notice being required.
			
	 § 11

Nachvertragliches Wettbewerbsverbot
	 		 	 § 11

Postcontractual Noncompetition clause

					
	1.	 	Der Mitarbeiterin ist es untersagt, für die Dauer von 1 (einem) Jahr nach Beendigung des zwischen den Parteien bestehenden Arbeitsverhältnisses in selbständiger, unselbständiger und sonstiger Weise, weder
mittelbar noch unmittelbar, weder für eigene noch für fremde Rechnung für ein Unternehmen im Gebiet der Mitgliedstaaten der Europäischen Union und den USA (“Wettbewerbsgebiet”) tätig zu werden, welches mit der
Gesellschaft im direkten oder indirekten Wettbewerb steht, einen solchen Wettbewerb fördert oder mit dem Wettbewerbsunternehmen verbunden ist (“Konkurrenztätigkeit”). Direkte und indirekte Wettbewerber sind definiert als
Unternehmen, die Produkte entwickeln, herstellen und / oder vertreiben, die zu den Produkten der Gesellschaft im Wettbewerb stehen, insbesondere ventrikuläre Unterstützungssysteme (VAD – Ventricular Assist System).	 		 	1.	 	The Employee shall be prohibited for the period of one (1) year after the cessation of the employment relation existing between the Parties from becoming active in a self-employed, employed or other fashion, either directly or
indirectly, for her own account or for the account of a third party, for any enterprise in the territory of the member states of the European Union and the United States of America (“Competitive Territory”) that competes with the Company
directly or indirectly, promotes such competition or is affiliated with a competing company (“Competitive Activity”). Direct and indirect competitors are hereby defined as enterprises that develop, produce and/or market products that
compete with the Company’s products, particularly ventricular assist devices (VADs).
					
	2.	 	In gleicher Weise ist es der Mitarbeiterin untersagt, während der Dauer dieses Verbots ein solches Unternehmen zu errichten, zu erwerben oder sich hieran unmittelbar oder mittelbar zu beteiligen. Von diesem Verbot ausgenommen
sind Beteiligungen an bis zu einer Höhe von 5,0 % des stimmberechtigten Kapitals.	 		 	2.	 	In the same fashion, the Employee shall be prohibited throughout the term of this prohibition from forming or acquiring such an enterprise or taking direct or indirect shares therein. Exempt from this prohibition shall be
shareholdings of up to 5.0% of the voting capital.
					
	3.	 	Für die Dauer des Verbots erhält die	 		 	3.	 	For the duration of the prohibition, the Employee shall receive an indemnity of

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.com    

 

 
  

									
		 	Mitarbeiterin eine Entschädigung in Höhe der Hälfte der von ihr zuletzt bezogenen vertragsgemäßen Leistungen (§ 74 HGB).	 		 		 	one-half of her most recently received contractual benefits (§ 74 of the Commercial Code).
					
	4.	 	Auf die Entschädigung muss sich die Mitarbeiterin andere Bezüge vollumfänglich anrechnen lassen. Der Mitarbeiter hat über anderweitige Einkünfte zum Ende eines jeden Quartals unaufgefordert Auskunft zu
geben; die Auskunft ist auf Anforderung zu belegen.	 		 	4.	 	The Employee must allow the full scope of any other remuneration to be credited towards the indemnity. The Employee must provide information about any other income as of the end of each quarter, without need of request; proof of the
information must be furnished upon request.
					
	5.	 	Endet der Vertrag aufgrund des Eintritts der Mitarbeiterin in den vorzeitigen oder endgültigen Ruhestand, so entfallen die Regelungen der vorstehenden Ziffern 1. bis 4.	 		 	5.	 	If the Agreement ceases because the Employee goes into early retirement or reaches definitive retirement age, the provisions in Paragraphs 1 to 4 shall no longer be applicable.
					
	6.	 	Für jede Handlung, durch die die Mitarbeiterin das Verbot gemäß vorstehenden Ziffern 1. und 2. schuldhaft verletzt, hat sie eine Vertragsstrafe in Höhe von € 25.000,00 zu zahlen.	 		 	6.	 	For each act through which the Employee negligently breaches the prohibition pursuant to Paragraphs 1 and 2, the Employee must pay a contractual penalty in the amount of € 25,000.00.
					
	7.	 	Besteht die Verletzungshandlung in der kapitalmäßigen Beteiligung an einem Wettbewerbsunternehmen oder der Eingehung eines Dauerschuldverhältnisses (z.B. Arbeits-, Dienst-, Handelsvertreter- oder
Beraterverhältnis), wird die Vertragsstrafe für jeden angefangenen Monat, in dem die kapitalmäßige Beteiligung oder das Dauerschuldverhältnis besteht, neu verwirkt (Dauerverletzung). Mehrere Verletzungen lösen jeweils
gesonderte Vertragsstrafen aus, ggf. auch mehrmals innerhalb eines Monats. Erfolgen dagegen einzelne Verletzungshandlungen im Rahmen einer Dauerverletzung, sind sie von der für die Dauerverletzung verwirkten Vertragsstrafe mit umfasst.	 		 	7.	 	If the infringement act consists in a capital investment in a competing enterprise or the entry into a recurring obligation (e.g. employment, service, commercial representative or consultant relation), the contractual penalty shall
be forfeited again for each initiated month in which the capital investment or the recurring obligation exists (persistent breach). Several breaches shall each trigger separate contractual penalties, even several times within one month. If, in
contrast, individual acts of infringement occur within the framework of a single persistent breach, they shall be encompassed by the contractual penalty forfeited for the persistent breach.
					
	8.	 	Die Geltendmachung von Schäden, die über die verwirkte Vertragsstrafe hinausgehen, bleibt vorbehalten, das	 		 	8.	 	The right to assert claims beyond the forfeited contractual penalty shall hereby reserved; this shall also apply to the assertion

  
  

 

			
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		 	Gleiche gilt für die Geltendmachung aller sonstigen gesetzlichen Ansprüche oder Rechtsfolgen aus einer Verletzung.	 		 		 	of all other claims and legal consequences from the breach that are stipulated by law.
					
	9.	 	Die Gesellschaft kann auf die Einhaltung des Wettbewerbsverbotes jederzeit verzichten, sowohl während des Anstellungsverhältnisses als auch danach. Im Falle eines Verzichts wird die Mitarbeiterin von der Verpflichtung zur
Unterlassung nach vorstehenden Ziffern 1. und 2. mit sofortiger Wirkung frei, während die Pflicht der Gesellschaft zur Zahlung der Entschädigung gemäß vorstehender Ziffer 3. sechs Kalendermonate nach Ausspruch des Verzichts
endet.	 		 	9.	 	The Company may waive the observance of this Covenant Not to Compete at any time, both during the employment relation and thereafter. In the event of a waiver, the Employee shall be free of the desistance obligation in accordance
with Paragraphs 1 and 2 with immediate effect, while the duty of the Company to pay the indemnity pursuant to Paragraph 3 shall cease 6 calendar months after declaration of the waiver.
			
	 § 12

Sonstige Vereinbarungen
	 		 	 § 12

Subsidiary Agreement

					
	1.	 	Dieser Vertrag unterliegt deutschem Recht.	 		 	1.	 	The employment contract shall be governed by German law.
					
	2.	 	Die deutsche Fassung dieses Vertrages ist die allein maßgebliche und bindende.	 		 	2.	 	The German version of this contract shall be the authoritative and binding version.
			
	 § 13

Datenschutz
	 		 	 § 13

Data protection

			
	Die Mitarbeiterin ermächtigt die Gesellschaft, personenbezogene Daten über die Mitarbeiterin zu erheben und zu verwenden, soweit eine Rechtsvorschrift dies vorsieht und zwingend voraussetzt, dies der
Zweckbestimmung des Arbeitsvertrages dient oder es zur Wahrnehmung berechtigter Interessen der Gesellschaft dient und die schutzwürdigen Interessen der Gesellschaft die schutzwürdigen Interessen der Mitarbeiterin am Ausschluss der Erhebung
oder Verwendung überwiegen. Hierzu gehört auch die Übermittlung personenbezogener Daten im Rahmen der Auskunfts- und Meldepflicht nach sozialversicherungs- und steuerrechtlichen Vorschriften. Im Übrigen ermächtigt die
Mitarbeiterin die Gesellschaft	 		 	The Employee agrees that the Company can collect and use Employee’s personal data, if the collection and use is prescribed and required mandatory by a legal provision, or if it is necessary to fulfil the concrete
purpose of the employment contract, or if it is necessary to safeguard legitimate interests of the Company and if it is appropriate after the interests of both parties have been weighed against each other. This includes the transfer of personal data
within the scope of fulfilling the duty to provide information and the duty to report pursuant to Social Law and Tax Law. Furthermore the Employee authorizes the Company to forward his personal data to the Company’s parent company HeartWare,
Inc., which has its business seat in the US. The

  
  

 

			
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	dazu, ihre personenbezogenen Daten an die Muttergesellschaft der Gesellschaft, die HeartWare Inc., die ihren Geschäftssitz in den USA hat, weiterzuleiten. Die Mitarbeiterin ermächtigt HeartWare, Inc. diese
Daten zu verwenden, soweit dies der Zweckbestimmung des Arbeitsverhältnisses zwischen der Mitarbeiterin und der Gesellschaft dient.	 		 	Employee authorizes HeartWare, Inc. to use such data as long as this is necessary to fulfil the concrete purpose of the employment relationship between the Employee and the Company.
			
	§ 14	 		 	§ 14
	“Business Protection Agreement” und “Amendment to the Employment agreement concerning the grant of severance in the event of change in control”	 		 	Business Protection Agreement and Amendment to the Employment agreement concerning the grant of severance in the event of change in control
			
	Die Inhalte des als Anlage 1 mit dieser Vereinbarung fest verbundenen und von der HeartWare Inc. vorgegebenen “Business Protection Agreement” und des als Anlage 2 mit dieser Vereinbarung fest
verbundenen und von der HeartWare Inc. vorgegebenen “Amendment to the Employment agreement concerning the grant of severance in the event of change in control” sind ebenfalls Vertragsbestandteile des zwischen der Gesellschaft und der
Mitarbeiterin geschlossenen Arbeitsverhältnisses.	 		 	The contents of the “Business Protection Agreement”, which is attached fixed with this Agreement as Annex 1 and given from the HeartWare Inc., and of the “Amendment to the Employment agreement
concerning the grant of severance in the event of change in control”, which is attached fixed with this Agreement as Annex 2 and given from the HeartWare Inc., are also contractual parts of the employment between the Company and the
employee.
			
	Das “Amendment to the Employment agreement concerning the grant of severance in the event of change in control” gilt sowohl für einen “change in control” bei der HeartWare Inc. oder HeartWare
International, Inc. als auch sinngemäß bei einem solchen der Gesellschaft.	 		 	The “Amendment to the Employment agreement concerning the grant of severance in the event of change in control” applies as well in the case of a change of control in regard to the HeartWare Inc. or HeartWare
International, Inc. as analogously in the case of a change of control in regard of the Company.
			
	Die Parteien vereinbaren bereits zum jetzigen Zeitpunkt, dass die gemäß dem “Amendment to the Employment agreement concerning the grant of severance in the event of change in control” (Anlage 2) von
der Gesellschaft zu erbringende Abfindungszahlung jedwede mögliche, insbesondere aufgrund Gesetz, einem Urteil oder einer Aufhebungs- oder Abwicklungsvereinbarung zu zahlende Abfindung an Erfüllungsstatt ersetzt.	 		 	The parties already agree at this time, that a severance pay provided by the Company under the “Amendment to the Employment agreement concerning the grant of severance in the event of change in control” (Annex
2) shall supersede any other possible severance payment especially based on law, on a judgment or on a termination / settlement agreement in lieu of fulfillment.

  
  

 

			
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	 § 15

Vertragsänderungen
	 		 	 § 15

Amendments to the Contract

					
	1.	 	Änderungen und/oder Ergänzungen dieses Vertrages, die nicht durch eine individuelle Vereinbarung der Vertragsparteien erfolgen, bedürfen zu ihrer Rechtswirksamkeit der schriftlichen Bestätigung. Dies gilt auch
für den Verzicht auf dieses Schriftformerfordernis. Das bedeutet, dass keine Ansprüche aus betrieblicher Übung entstehen können	 		 	1.	 	Changes of and/or amendments to this contract, which were not agreed upon individually among the parties, shall require to be confirmed to in writing in order to become effective. This applies also to the waiver of the written form
requirement. This means that no claims may arise under the terms of an operational practice (“Betriebliche Übung”).
					
	2.	 	Sollte aus irgendeinem Grund eine Bestimmung dieses Vertrages unwirksam sein oder werden, so berührt dies nicht die übrigen Bestimmungen. An die Stelle der unwirksamen Bestimmung soll eine Regelung treten, die dem am
nächsten kommt, was die Vertragspartner in verständiger Würdigung der beiderseitigen Interessen vereinbart hätten, falls sie die Unwirksamkeit der betreffenden Regelung gekannt hätten.	 		 	2.	 	Should, for any reason, a provision of this contract be or become invalid, the remaining provisions shall not be effected thereby. The invalid provision shall be replaced by another provision reflecting as closely as possible what
the parties would have agreed taking their mutual interests into consideration if they have known about the invalidity of the respective provision.

 

					
	Datum, September 1, 2014	 		 	Date, September 1, 2014
			
	Gesellschaft	 		 	Company
			
	 /s/ Doug Godshall
	 		 	 /s/ Doug Godshall

	 Doug Godshall
 Geschäftsführer
HeartWare GmbH
	 		 	 Doug Godshall
 Managing Director HeartWare
GmbH

			
	Mitarbeiterin	 		 	Employee
			
	 /s/ Katrin Leadley
	 		 	 /s/ Katrin Leadley

	Katrin Leadley	 		 	Katrin Leadley

  
  

 

			
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 Annex 2 

Grant of Severance in the Event of Change in Control 
  

	 	a.	If your employment is terminated by the Company without “Cause” (as defined below) or by you for “Good Reason” (as defined below) coincident with or within 18 months after a Change in Control (as
defined below), and subject to the notice and release requirements described below, the Company shall cause to be paid, on or beginning within 15 days after your termination of employment a lump-sum cash payment in an amount equal to one times
your Total Salary. The severance pay provided herein shall supersede, and not be in duplication of, any severance pay provided under the Employment Agreement or as required pursuant to any other statutory or legal requirement. “Total
Salary” means your then current Base Salary plus the most recent amount paid to you as your Annual Bonus, if any. 

  

	 	b.	“Cause” means your: (i) material or persistent breach of this letter agreement; (ii) engaging in any act that constitutes serious misconduct, theft, fraud, material misrepresentation, serious
dereliction of fiduciary obligations or duty of loyalty to the Company; (iii) conviction of a felony, or a plea of guilty or nolo contendere to a felony charge or any criminal act involving moral turpitude or which in the reasonable
opinion of the Board brings you, the Board, the Company or any affiliate into disrepute; (iv) neglect of or negligent performance of your duties under this letter agreement; (v) willful, unauthorized disclosure of material confidential
information belonging to the Company, or entrusted to the Company by a client, customer, or other third party; (vi) repeatedly being under the influence of drugs or alcohol (other than prescription medicine or other medically related drugs to
the extent that they are taken in accordance with their directions) during the performance of your duties under this letter agreement, or, while under the influence of such drugs or alcohol, engaging in grossly inappropriate conduct during the
performance of your duties under this letter agreement; (vii) repeated failure to comply with the lawful directions of your immediate supervisor or the Board that are not inconsistent with the terms of this letter agreement; or
(viii) actual engagement in conduct that violates applicable state or federal laws governing the workplace that could reasonably be expected to bring the Company or any affiliate into disrepute. In order for the Company to terminate your
employment for Cause under any of clauses (i), (iv), (vi) or (vii) in the preceding sentence, the Company must provide you with written notice of its intention to terminate employment for Cause and describing the acts or omissions upon
which such termination for Cause is based, and you shall be provided a 30-day period from the date of such notice within which to cure or correct such acts or omissions if they are reasonably susceptible of cure or correction.

 

	 	c.	“Good Reason” means the occurrence of any of the following without your consent: 

i. a material diminution in your Base Salary; 

ii. a material diminution in your authority, duties, or responsibilities; 

  
  

 

			
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 iii. a material diminution in the authority, duties, or responsibilities of
the supervisor to whom you are required to report, including a requirement that you report to a corporate officer or employee instead of the Board; 

iv. a material diminution in the budget over which you retain authority; or 

v. any other action or inaction that constitutes a material breach by the Company of any agreement under which you provide
services. 
 Notwithstanding the above, no “Good Reason” exists unless (I) you notify the Company in writing within 90 days after the initial
existence of any condition listed above, and the Company fails to cure the condition within 30 days after receiving notice, and (II) you terminate employment by no later than 2 years after the initial existence of any condition listed above. 

 

	 	d.	A “Change in Control” means the earliest to occur of any of the following events, construed in accordance with section 409A of the Internal Revenue Code: 

i. Any one Person or more than one Person Acting as a Group (each as defined below) acquires, or has acquired during the
12-month period ending on the date of the most recent acquisition by such Person or Group, beneficial ownership of more than a majority of the total fair market value or total voting power of the then-outstanding securities of the Parent; 

ii. Any one Person or more than one Person Acting as a Group (each as defined below) acquires, or has acquired during the
12-month period ending on the date of the most recent acquisition by such Person or Group, the assets of the Parent that have a total gross fair market value (as determined by the Board) of more than 50% of the total gross fair market value of all
of the assets of, as applicable, the Parent immediately prior to the initiation of the acquisition; or 
 iii. A
majority of the members of the board of directors of the Parent is replaced during any 12-month period by directors whose appointment or election is not endorsed or approved by a majority of the members of the board who were members of the board
prior to the initiation of the replacement. 
 For purposes of this Amendment, a “Person” means any individual, entity or
group within the meaning of section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than (A) the Parent, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Parent, or
(C) any corporation owned, directly or indirectly, by the stockholders of the Parent in substantially the same proportions as their ownership of stock of the Parent. Persons will be considered to be “Acting as a Group” (or a
“Group”) if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the corporation. If a Person owns stock in both corporations that enter into
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or acquisition of stock, or similar transaction, such stockholder is considered to be Acting as a Group with other stockholders only with respect to the ownership in that corporation before the
transaction giving rise to the change and not with respect to the ownership interest in the other corporation. Persons will not be considered to be Acting as a Group solely because they purchase assets of the same corporation at the same time
or purchase or own stock of the same corporation at the same time, or as a result of the same public offering. 
 For purposes of this
Amendment section 318(a) of the Internal Revenue Code applies to determine stock ownership. Stock underlying a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option
is not considered owned by the individual who holds the unvested option). For purposes of the preceding sentence, however, if a vested option is exercisable for stock that is not substantially vested (as defined by Treasury regulation section
1.83 3(b) and (j)), the stock underlying the option is not treated as owned by the individual who holds the option. 
  

	 	e.	Your right to receive severance pay under this Amendment is conditioned upon (i) your signing and delivering to the Company, before any payment is due or scheduled to begin, a general release of claims, in
form and substance reasonably acceptable to the Company, by which you release the Company from any claim arising from your employment by, or termination of employment with, the Company, in consideration for the payment; and (ii) your compliance
with the terms of the Business Protection Agreement, attached to the Employment Agreement as Annex 1. The Company shall make no payment before the general release becomes effective upon the expiration of any applicable revocation period.

  
  

 

			
	    Kugelfangtrift 10, 30179 Hannover, Germany	 	heartware.comEX-4.05

 Exhibit 4.05 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE ISSUER OF THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER MAY REQUIRE AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE ISSUER AND ITS COUNSEL, THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
 VERISILICON HOLDINGS CO., LTD.

 WARRANT TO PURCHASE ORDINARY SHARES 
  

			
	Holder:	  	
		
	Credit Facility:	  	 (1) International revolving credit line in the amount of up to
$            
 (2) Bridge loan of
$            

		
	Warrant Shares:	  	             shares of the Company’s Ordinary Shares
		
	Warrant Exercise Price:	  	The price as calculated in accordance with Section 2(b) hereof, subject to adjustment from time to time as specified in Section 5 hereof.
		
	Issue Date:	  	                             ,
            
		
	Expiration Date:	  	The earlier of December 31, 2015, or (ii) immediately prior to the consummation of a Change of Control (as defined herein).

 THIS WARRANT CERTIFIES THAT, for value received, the receipt and adequacy of which is hereby acknowledged,
            , or its assignees (each a “Holder”), is entitled to subscribe for and purchase, subject to the provisions and upon the terms and conditions hereinafter set forth,
             shares of fully paid and nonassessable Ordinary Shares of VeriSilicon Holdings Co., Ltd., a Cayman Islands company (the “Company”), at the initial exercise price per
share (subject to adjustments from time to time, as specified in Section 5 hereof) as set forth above. 
 1. Term and
Expiration. The purchase right represented by this Warrant is exercisable, in whole or in part, at any time and from time to time from the Issue Date through the earlier to occur of: 

(a) December 31, 2015; or 

 (b) immediately prior to the consummation of a Change of Control (as defined in Section 12
hereof). 
 (c) In the event of a proposed transaction of the kind described in subsection (b) above, the Company shall notify the
Holder of this Warrant at least ten (10) days prior to the consummation of such event or transaction. In the event of failure to provide timely notification, termination of this Warrant pursuant to subsection (b) shall be delayed by one
day for each day of delay in delivering such notice to the holder of this Warrant. 
 2. Warrant Exercise Price. 

(a) Type of Warrant Share Issuable Upon Exercise. This Warrant shall be exercisable only for shares of the Company’s Ordinary Shares.

 (b) Warrant Exercise Price. The Warrant Exercise Price per share shall be the lower of (i) $1.91, or (ii) fifty percent
(50%) of the Company initial public offering price per share. The Warrant Exercise Price shall be subject to further adjustments from time to time as specified in Section 5 hereof. 

3. Method of Exercise; Cash Payment; Issuance of New Warrant. Subject to Section 1 hereof, the purchase right represented by this
Warrant may be exercised by the Holder hereof, in whole or in part and from time to time, at the election of the Holder hereof, by: 
 (a)
the surrender of this Warrant (with the notice of exercise substantially in the form attached hereto as Exhibit A duly completed and executed) at the principal executive offices of the Company and accompanied by payment to the Company, by
(i) certified or bank check acceptable to the Company, (ii) cancellation by the Holder of indebtedness or other obligations of the Company to the Holder or (iii) by wire transfer to an account designated by the Company, or any
combination of (i), (ii) and (iii), of an amount equal to the then applicable Warrant Exercise Price multiplied by the number of shares then being purchased, or 

(b) exercise of the right provided for in Section 11 hereof, together with the surrender of this Warrant (with the notice of exercise
substantially in the form attached hereto as Exhibit A duly completed and executed) at the principal executive offices of the Company. 

The person or persons in whose name(s) any certificate(s) representing the shares of Warrant Shares shall be issuable upon exercise of this.
Warrant shall be deemed to have become the holder(s) of record of, and shall be treated for all purposes as the record holder(s) of, the shares represented thereby (and such shares shall be deemed to have been issued) immediately prior to the close
of business on the date or dates upon which this Warrant is exercised. In the event of any exercise of the rights represented by this Warrant, certificates for the shares of Warrant Shares so purchased shall be delivered to the Holder hereof as soon
as possible and in any event within twenty (20) days after such exercise and, unless this Warrant has been fully exercised or expired, a new warrant having the same terms as this Warrant and representing the remaining portion of such shares, if
any, with respect to which this Warrant shall not then have been exercised shall also be issued to the Holder hereof as soon as possible and in any event within such twenty-day period. 

  
 2 

 4. Reservation of Shares. During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized, and reserved for the purpose of the issuance upon exercise of the purchase rights evidenced by this Warrant a sufficient number of shares of its capital stock to provide for
the exercise of the rights represented by this Warrant. 
 5. Adjustment of Warrant Exercise Price and Number of Shares. The number
and kind of securities purchasable upon the exercise of this Warrant and the Warrant Exercise Price shall be subject to adjustment to the nearest whole share (one-half and greater being rounded upward) and nearest cent (one-half cent and greater
being rounded upward) from time to time upon the occurrence of certain events, as follows. Each of the adjustments provided by the subsections below shall be deemed separate adjustments and any adjustment of this Warrant pursuant to any subsection
of this Section 5 shall preclude additional adjustments for the same event or transaction by the remaining subsections. 
 (a)
Reclassification. In case of any reclassification or change of securities of the class issuable upon exercise of this Warrant (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination) into the same or a different number or class of securities, the Company shall duly execute and deliver to the Holder of this Warrant a new warrant (in form and substance reasonably satisfactory to the Holder;
of this Warrant), so that the Holder of this Warrant shall, thereafter be entitled to receive upon exercise of this. Warrant, at a total purchase price not to exceed that payable upon the exercise of the unexercised portion of this Warrant, and in
lieu of the shares of Warrant Shares theretofore issuable upon exercise of this Warrant, the kind and amount of shares of stock, other securities, money and property receivable upon such reclassification or change by a holder of the number of shares
then purchasable under this Warrant. The Company or the surviving entity shall deliver such new warrant as soon as possible and in any event within twenty (20) days after such reclassification or change. Such new warrant shall provide for
adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 5. The provisions of this subparagraph (a) shall similarly apply to successive reclassifications or changes. 

(b) Share Splits or Combination of Shares. If the Company at any time while this Warrant remains outstanding and unexpired shall
subdivide (by stock split) or combine (by reverse stock split) its outstanding shares of capital stock into which this Warrant is exercisable, the Warrant Exercise Price shall be proportionately decreased in the case of a subdivision or increased in
the case of a combination, effective at the close of business on the date the subdivision or combination becomes effective and the number of shares of Warrant Shares issuable upon exercise of this Warrant shall be proportionately increased in the
case of a subdivision or decreased in the case of a combination, and in each case to the nearest whole share, effective at the close of business on the date the subdivision or combination becomes effective. The provisions of this subparagraph
(b) shall similarly apply to successive subdivisions or combinations of outstanding shares of capital stock into which this Warrant is exercisable. 

(c) Share Dividends and Other Distributions. If the Company at any time while this Warrant is outstanding and unexpired shall
(i) pay a dividend with respect to Warrant Shares payable in Warrant Shares, then (A) the Warrant Exercise Price shall be adjusted, from 

  
 3 

 
and after the date of determination of shareholders entitled to receive such dividend or distribution (the “Record Date”), to that price determined by multiplying the Warrant Exercise
Price in effect immediately prior to such date of determination by a fraction (1) the numerator of which shall be the total number of shares of Warrant Shares outstanding immediately prior to such dividend or distribution, and (2) the
denominator of which shall be the total number of shares of Warrant Shares outstanding immediately after such dividend or distribution and (B) the number of shares of Warrant Shares issuable upon exercise of this Warrant shall be
proportionately adjusted, to the nearest whole share, from and after the Record Date by multiplying the number of shares of Warrant Shares purchasable hereunder immediately prior to such Record Date by a fraction (I) the numerator of which
shall be the total number of shares of Warrant Shares outstanding immediately after such dividend or distribution, and (2) the denominator of which shall be the total number of shares of Warrant Shares outstanding immediately prior to such
dividend or distribution; or (ii) make any other distribution with respect to Warrant Shares (except any distribution specifically provided for in Sections 5(a) and 5(b) hereof), then, in each such case, provision shall to this Warrant be made
by the Company such that the Holder of this Warrant shall receive upon exercise of this Warrant (in addition to the number of shares of stock receivable upon exercise of this Warrant) a proportionate share of any such dividend or distribution
(without payment of any additional consideration therefor) as though it were the holder of all shares of Warrant Shares remaining issuable upon exercise of this Warrant as of the Record Date fixed for the determination of the shareholders of the
Company entitled to receive such dividend or distribution. The provisions of this subparagraph (c) shall similarly apply to successive stock dividends and other distributions by the Company. 

(d) Issuance of Additional Ordinary Shares. In the event that the Company shall at any time make an issuance of Additional Ordinary
Shares (as such term is defined in the Company’s Memorandum of Association, as may be amended from time to time, the “Memorandum. of Association”) without consideration or for a consideration per share less than the per, share
conversion price of the Warrant Shares in effect on the date of and immediately prior to such issue; then the price at which the Warrant. Shares may be converted into Ordinary Shares shall be subject to the same adjustment as set forth in the then
current Memorandum of Association. 
 6. Notice of Adjustments. Whenever the Warrant Exercise Price or the number of shares of
Warrant Shares purchasable hereunder shall be adjusted pursuant to Section 5 hereof, the Company shall issue a certificate signed by its Chief Executive Officer, or such other executive officer of the Company as the Chief Executive Officer may
designate, setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the Warrant Exercise Price and the number of shares of Warrant Shares
purchasable hereunder after giving effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder of this Warrant within five (5) days after the occurrence of the event resulting in such adjustment at such
Holder’s last known address in accordance with Section 14 hereof. 
 7. Fractional Shares. No fractional shares will be
issued in connection with any exercise hereunder, but in lieu of such fractional shares the Company shall pay the Holder in cash or by check the amount determined by multiplying such fractional share by the fair market value of one share of Warrant
Shares as determined in accordance with Section 11(c) hereof. 

  
 4 

 8. Compliance with Securities Act of 1933; Transfer of Warrant or Shares. 

(a) Compliance with Securities Act of 1933. The Holder of this Warrant, by acceptance hereof, agrees that this Warrant, and the shares
of Warrant Shares to be issued upon exercise hereof are being acquired for investment and that such holder will not offer, sell, transfer or otherwise dispose of this Warrant, or any such shares except under circumstances which will not result in a
violation of the Securities Act of 1933 (the “Securities Act”) and any applicable state securities laws. Upon exercise of this Warrant, unless the shares being acquired are registered under the Securities Act and any applicable state
securities laws or an exemption from such registration is available, the Holder hereof shall confirm in writing that the shares so purchased are being acquired for investment and not with a view toward distribution or resale in violation of the
Securities Act and shall confirm such other matters related thereto as may be reasonably requested by the Company. The shares of Warrant Shares issued upon exercise of this Warrant (unless registered under the Securities Act and any applicable state
securities laws) shall be stamped or imprinted with a legend in substantially the following form: 
 “THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE ISSUER OF THESE SHARES MAY REQUIRE AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE ISSUER AND ITS
COUNSEL, THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.” 

Said legend shall be removed by the Company, upon the request of a Holder, at such time, as the restrictions on the transfer of the applicable
security shall have terminated. 
 (b) Transferability of the Warrant. Subject to compliance with Section 8(c) hereof, which
provisions are intended to ensure compliance with applicable federal and states securities laws, this Warrant and the shares of Warrant Shares issuable upon exercise of this Warrant may be transferred by the Holder hereof, in whole or in part and
from time to time together with the transfer of the Credit Facility entered into in connection herewith to the extent any amount under such Credit Facility remains outstanding. 

(c) Method of Transfer. With respect to any offer, sale, transfer or other disposition of this Warrant or any shares of Warrant Shares
acquired pursuant to the exercise of this Warrant prior to registration of such Warrant or shares, the Holder hereof shall prior to such offer, sale, transfer or other disposition: 

(i) surrender this Warrant at the principal executive offices of the Company or provide evidence reasonably satisfactory to the Company of the
loss, theft or destruction of this Warrant and an indemnity agreement reasonably satisfactory to the Company, 

  
 5 

 (ii) pay any applicable transfer taxes or establishing to the satisfaction of the Company that
such taxes have been paid, 
 (iii) deliver a written assignment to the Company in substantially the form attached hereto as Exhibit
B duly completed and executed prior to transfer, describing briefly the manner thereof, and 
 (iv) deliver a written opinion of such
Holder’s counsel, or other evidence, if reasonably requested by the Company, to the effect that such offer, sale, transfer or other disposition may be effected without registration or qualification (under the Securities Act as then in effect
and any applicable state securities law then in effect) of this Warrant or the shares of Warrant Shares. 
 As promptly as practicable and
no later than ten (10) days after receiving the items set forth above, the Company shall notify the Holder that it may sell, transfer or otherwise dispose of this Warrant or such shares, all in accordance with the terms of the notice delivered
to the Company. If a determination has been made pursuant to this Section 8(c) that the opinion of counsel for the Holder or other evidence is not reasonably satisfactory to the Company, the Company shall so notify the Holder promptly with
details of such determination. Notwithstanding the foregoing, this Warrant or such underlying Warrant Shares may, as to such federal laws, be offered, sold or otherwise disposed of in accordance with Rule 144 under the Securities Act, provided that
the Holder shall furnish such information as the Company may reasonably request to provide a reasonable assurance that the provisions of Rule 144 have been satisfied. Each certificate representing this Warrant or such shares thus transferred (except
a transfer pursuant to Rule 144 or an effective registration statement) shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with applicable federal and state securities laws, unless in the aforesaid
opinion of counsel for the Holder, such legend is not required in order to ensure compliance with such laws. Upon any partial transfer of this Warrant, the Company will issue and deliver to such new holder a new warrant (in form and substance
similar to, this Warrant) with respect to the portion transferred and will -issue and deliver to the Holder a new warrant (in form and substance similar to this Warrant) with respect to the portion not transferred as soon as possible and in any
event within twenty (20) days, after such transfer. 
 9. No Rights as Shareholders; Information. No holder of this Warrant, as
such, prior to exercise hereof shall be entitled to vote or receive dividends or be deemed the holder of shares, nor shall anything contained herein be construed to confer upon the Holder of this Warrant, as such, any of the rights of a shareholder
of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until this Warrant
shall have been exercised and the shares of Warrant Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein. 

10. Market Stand-Off Agreement. Each Holder, and its successors and assigns, agrees in connection with the Company’s firm
commitment underwritten initial public offering of the Company’s securities not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any of the Company’s securities (other than those included
in the 

  
 6 

 
registration or acquired in a public market transaction) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one
hundred eighty (180) days) from the effective date of such registration as may be requested by the underwriters, provided, however, that all officers, directors and five percent (5%) shareholders of the Company agree to a similar
restriction. Each Holder, and its successors and assigns, further agrees to enter into a separate agreement providing for the foregoing, as may be required by the underwriters. 

11. Right to Convert Warrant into Shares; Non-Cash. Net Exercise. 

(a) Right to Convert. In addition to and without limiting the rights of the Holder under the terms of this Warrant, the Holder shall
have the right to convert this Warrant or any portion thereof (the “Net Exercise Right”) into shares of Warrant Shares as provided in this Section 11 at any time or from time to time during the term of this Warrant. Upon exercise of
the Net Exercise Right with respect to a particular number of shares of Warrant Shares subject to this Warrant (the “Converted Warrant Shares”), the Company shall deliver to the Holder (without payment by the Holder of any exercise price
or any cash or other consideration) (X) that number of fully paid and nonassessable shares of Warrant Shares equal to the (Y) Converted Warrant Shares multiplied by the quotient obtained by dividing the result of (B) fair market value
of one share of Warrant Shares less (A) the Warrant Exercise Price per share by (B) the fair market value of one share of Warrant Shares all on the Conversion Date (as herein defined). 

Expressed as a formula such conversion shall be computed as follows: 

X= (B – A)* Y 
 B 

 

			
	Where:  	  	X = the number of shares of Warrant Shares that may be issued to holder
		
		  	Y = the number of shares of Warrant Shares that are being surrendered pursuant to this Net Exercise Right (i.e., the Converted Warrant Shares)
		
		  	A = the Warrant Exercise Price per share
		
		  	B= the fair market value of one share of Warrant Shares

 No fractional shares shall be issuable upon exercise of the Net Exercise Right, and, if the number of shares
of Warrant Shares issued or to be issued determined in accordance with the foregoing formula is other than a whole number, the Company shall pay to the Holder an amount in cash equal to the fair market value of the resulting fractional share on the
Conversion Date (as hereinafter defined). For purposes of this Section 11, shares issued pursuant to the Net Exercise Right shall be treated as if they were issued upon the exercise of this Warrant. 

(b) Method of Exercise. The Net Exercise Right may be exercised by the Holder by the surrender of this Warrant at the principal office
of the Company together with the notice of exercise substantially in the form attached hereto as Exhibit A duly completed and executed, specifying that the Holder thereby intends to exercise the Net Exercise Right and indicating the number of
shares subject to this Warrant which are being surrendered (referred to 

  
 7 

 
in Section 11(a) hereof as the Converted Warrant Shares) in exercise of the Net Exercise Right. Such conversion shall be effective upon receipt by the Company of this Warrant together with
the aforesaid written statement, or on such later date as is specified therein (the “Conversion Date”). 
 (c) Determination of
Fair Market Value. For purposes of this Section 11, “fair market value” of one share of Warrant Shares as of, a particular date shall be deemed to be the price per share which the Company could obtain from a willing third-party
buyer (not an existing shareholder, director or employee) for the Company’s authorized but unissued shares, as determined in good faith by the Board of Directors of the Company. 

12. Certain Definitions. As used in this Warrant “Change of Control” shall mean sale of all or substantially all of the
assets of the Company or a merger or reorganization of the Company with or into any other corporation or corporations, in which transaction the Company’s shareholders immediately prior to such transaction own immediately after such transaction
less than fifty percent (50%) of the equity securities of the surviving corporation or its parent, provided, however, that an equity financing with the principal purpose of raising capital shall not be deemed a Change of Control. 

13. Modification and Waiver; Effect of Amendment or Waiver. This Warrant and any provision hereof may be modified, amended, waived,
discharged or terminated only by an instrument in writing, designated as an amendment to this Warrant and approved by a duly authorized officer of the Company and the Holder. Any waiver or amendment effected in accordance with this Section 13
shall be binding upon the Holder, each future holder of this Warrant or of any shares purchased under this Warrant (including securities into which such shares have been converted) and the Company. 

14. Notices. Any notice, request, communication or other document required or permitted to be given or delivered to the Holder hereof
or the Company shall be delivered by personal delivery, or shall be sent by certified United States mail, first-class postage prepaid or by overnight delivery using a internationally recognized courier service, to each such holder at its address as
shown on the books of the Company or to the Company at the address indicated on the signature page of this Warrant. All such notices, request, communications or other documents shall be deemed to have been received by the recipient (i) in the
case of personal delivery, on the date of such delivery, (ii) in the case of delivery by a internationally recognized courier service, on the next business day subsequent to deposit with the courier and (iii) in the case of mailing, on the
fourth business day following the date of deposit in the United States mails, first-class postage prepaid. 
 15. Lost Warrants or Share
Certificates. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant or any stock certificate and, in the case of any such loss, theft or destruction, upon receipt of an
indemnity agreement reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such mutilated Warrant or stock certificate, the Company will issue and deliver a new warrant (containing the same
terms as this Warrant) or stock certificate, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate. 

  
 8 

 16. Descriptive Headings. The descriptive headings of the several paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant. The language in this Warrant shall be construed as to its fair meaning without regard to which party drafted this Warrant. 

17. Governing Law. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by,
the laws of the State of California, without reference to principles governing conflicts of laws. 
 18. No Impairment. The Company
will not, by an voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but will at all times in good faith assist in carrying out all the provisions
of this Warrant and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of the Holder of this Warrant against impairment, subject to amendment of this Warrant by approval of the Company and the
Holder.• 
 19. Issue Taxes. The Company shall pay any and all issue and other taxes payable in respect of any issue or delivery
of Warrant Shares upon the exercise of this Warrant that may be imposed under the laws of the United States of America or by any state, political subdivision or taxing authority of the United States of America; provided, however, that the
Company shall not be required to pay any tax or taxes that may be payable in respect of any transfer involved in the issue or delivery of any Warrant or certificates for Warrant Shares in a name other than that of the registered holder of such
Warrant, and no such issue or delivery shall be made unless and until the person or entity requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such
tax has been paid. 
 20. Severability. In the event that any one or more of the provisions contained in this Warrant shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such provision(s) shall be ineffective only to the extent of such invalidity, illegality or unenforceability, without invalidating the remainder of such provision or the
remaining provisions of this Warrant and such invalidity, illegality or unenforceability shall not affect any other provision of this Warrant, which shall remain in full force and effect. 

21. Counterparts. This Warrant may be executed in two or more counterparts, each of which shall be an original, and all of which
together shall constitute one instrument. 
 22. Attorneys’ Fees. If any action at law or in equity is necessary to enforce or
interpret the terms of this Warrant, the prevailing party in such dispute shall be entitled to collect its reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which it may be entitled. 

23. Company Information. The Company shall deliver to Holder (so long as Holder holds all or any portion of the Warrant or all of the
Warrant Shares upon exercise thereunder) all of the financial information required to be delivered by the Company to any Major Shareholder under Section 1.1 of the Company’s Amended and Restated Members Agreement dated August 16,
2011, as may be amended from time to time, the “Members Agreement”). The Company’s 

  
 9 

 
obligations under this Section 23 shall terminate on and be of no further force or effect upon the earliest to occur of (i) the closing of the first underwritten public offering in
connection with the listing of any of the securities of the Company on a stock exchange, (ii) the date the Company first becomes subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or (iii) a Change of
Control. 
 24. Registration Rights. Holder shall be entitled to all of the rights and subject to all of the obligations set forth in
Section 2 of the Members Agreement, on the terms and conditions set forth therein, as if such terms and conditions were set forth in this Warrant. Simultaneously with the exercise of this Warrant, Holder shall execute a counterpart signature
page to such Members Agreement, which document shall add Holder as a party thereto (with respect to Section 2 thereof only) and give Holder all registration rights as and to the extent provided in Section 2 thereof. 

[Remainder of Page Left Blank Intentionally] 

  
 10 

 IN WITNESS WHEROF, the parties hereto have caused this Warrant to be duly executed as of the
issue date of this Warrant by its duly authorized officers. 
  

			
	 VERISILICON HOLDINGS CO., LTD.

	 A Cayman Islands Company

		
	 By:
	 	  

	 Title:
	 	  

	 Address:
	 	

  

			
	 Accepted and Agreed:

	
	 NAME OF ENTITY

		
	 By:
	 	  

	 Title:
	 	  

  
 11 

 EXHIBIT A 

NOTICE OF EXERCISE 
  

	To:	VeriSilicon Holdings Co., Ltd. (the “Company”) 

 1. The undersigned hereby: 

 

			
	 ̈	  	elects to purchase                 shares of the Warrant Shares (as defined in the Warrant) of the Company pursuant to the terms of the
attached Warrant, and tenders herewith payment of the purchase price of such shares in full; or
		
	 ̈	  	elects to exercise its net issuance rights pursuant to Section 11 of the attached Warrant with respect to                  shares of the
Warrant Shares.

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

					
			
		 	  
	 	
		 	(Name)	 	
			
		 	  
	 	
		 	(Address)	 	
			
		 	  
	 	
		 	City, State)	 	

 3. The undersigned represents that the aforesaid shares being acquired for the account of the undersigned for
investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares, all except as in compliance with applicable securities laws.

  

					
	  
	 		  	
	            (Date)	 		  	  

		 		  	(Signature).
			
		 		  	Signature must be guaranteed by a commercial bank or trust company or a member firm of a major stock exchange if shares of Warrant Shares are to be issued, or securities are to be delivered, other than to or in the name of the
registered holder of this Warrant.

 NOTICE: Signature must correspond in all respects with the name as written upon the face of the Warrant in every particular
without alteration or any change whatever 

  
 12 

 EXHIBIT B 

FORM OF ASSIGNMENT 
 FOR VALUE RECEIVED,
the undersigned holder of the attached Warrant hereby sells, assigns and transfers unto                      whose address is
                     and whose taxpayer identification number is
                     the undersigned’s right, title and interest in and to the Warrant dated October 11, 2011 issued by VeriSilicon
Holdings Co, Ltd., a Cayman Islands Company (the “Company”) to purchase                      shares of the Company’s Ordinary
Shares, and does hereby irrevocably constitute and appoint                      attorney to transfer said Warrant on the books of the Company
with full power of substitution in the premises. 
 In connection with such sale, assignment, transfer or other disposition of this Warrant,
the undersigned hereby confirms that: 
  

			
	 ̈	  	such sale, transfer or other disposition may be effected without registration or qualification (under the Securities Act as then in effect and any applicable state securities law then in effect) of this Warrant or the securities
issuable thereunder and has attached hereto a written opinion of such Holder’s counsel to that effect; or
		
	 ̈	  	such sale, transfer or other disposition has been registered under the Securities Act of 1933, as amended, and registered and/or qualified under all applicable state securities laws.

  

					
	  
	 		  	
	(Date)	 		  	  

		 		  	(Signature)
			
		 		  	Signature must correspond in all respects with the name as written upon the face of the Warrant in every particular without alteration or any change whatever.

  
 13

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