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Exhibit 4.03  

 
 

RIGHTS AGREEMENT    
    
    BETWEEN    
    
    DEXCOM, INC.    
    
    AND    
    
    AMERICAN STOCK TRANSFER & TRUST COMPANY,    
    
    AS RIGHTS AGENT    
    

   DATED AS OF                        , 2005    

   TABLE OF CONTENTS  

	 
	 	 
	 	Page

	Section 1.	 	Certain Definitions	 	1
	

Section 2.	
 	

Appointment of Rights Agent	
 	

4
	

Section 3.	
 	

Evidence of Rights Before Distribution Date; Transfer; Legends	
 	

4
	

Section 4.	
 	

Evidence of Rights After Distribution Date; Form of Right Certificates; Countersignatures	
 	

5
	

Section 5.	
 	

Distribution of Certificates; Registration	
 	

6
	

Section 6.	
 	

Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	
 	

6
	

Section 7.	
 	

Exercise of Rights; Purchase Price; Expiration Date of Rights	
 	

6
	

Section 8.	
 	

Cancellation and Destruction of Right Certificates	
 	

8
	

Section 9.	
 	

Status and Availability of Preferred Shares	
 	

8
	

Section 10.	
 	

Preferred Shares Record Date	
 	

8
	

Section 11.	
 	

Adjustment of Purchase Price, Number of Shares or Number of Rights	
 	

9
	

Section 12.	
 	

Certificate of Adjusted Purchase Price or Number of Shares	
 	

14
	

Section 13.	
 	

Consolidation, Merger or Sale or Transfer of Assets or Earning Power	
 	

14
	

Section 14.	
 	

Fractional Rights and Fractional Shares	
 	

15
	

Section 15.	
 	

Rights of Action	
 	

16
	

Section 16.	
 	

Agreement of Right Holders	
 	

16
	

Section 17.	
 	

Right Certificate Holder Not Deemed a Stockholder	
 	

16
	

Section 18.	
 	

Compensation and Indemnity of the Rights Agent	
 	

17
	

Section 19.	
 	

Merger or Consolidation or Change of Name of Rights Agent	
 	

17
	

Section 20.	
 	

Rights and Duties of Rights Agent	
 	

18
	

Section 21.	
 	

Change of Rights Agent	
 	

20
	

Section 22.	
 	

Issuance of New Right Certificates	
 	

20
	

Section 23.	
 	

Redemption	
 	

21
	

Section 24.	
 	

Exchange	
 	

21
	

Section 25.	
 	

Notice of Certain Events	
 	

22
	

Section 26.	
 	

Notices	
 	

23
	

Section 27.	
 	

Supplements and Amendments	
 	

23
	

Section 28.	
 	

Successors	
 	

24
	

Section 29.	
 	

Benefits of this Agreement	
 	

24
	

Section 30.	
 	

Severability	
 	

24
	 	 	 	 	 

i

 

	

Section 31.	
 	

Governing Law	
 	

24
	

Section 32.	
 	

Counterparts	
 	

24
	

Section 33.	
 	

Descriptive Headings	
 	

24
	

Section 34.	
 	

Entire Agreement	
 	

24
	

 	
 	

Signatures	
 	

25
	

Exhibit A—	
 	

Form of Certificate of Designations of Series A Junior Participating Preferred Stock	
 	

 
	

Exhibit B—	
 	

Summary of Rights to Purchase Preferred Shares	
 	

 
	

Exhibit C—	
 	

Form of Right Certificate	
 	

 

ii

   RIGHTS AGREEMENT  

        This Agreement, dated as of                        , 2005, between
DexCom, Inc., a Delaware corporation (the
"Company"), and American Stock Transfer & Trust Company, a New York company, as Rights Agent (the "Rights
Agent"). 

        The
Board of Directors of the Company has authorized and declared a dividend of one preferred share purchase right (a "Right") for each
Common Share (as hereinafter defined) of the Company outstanding at the Close of Business (as hereinafter defined)
on                        , 2005 (the "Record
Date"), each Right representing the right to purchase one one-hundredth of a Preferred Share (as hereinafter defined), upon the terms and subject to the conditions
herein set forth, and has further authorized and directed the issuance of one Right with respect to each Common Share that shall become outstanding (i) between the Record Date and the earliest
of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are hereinafter defined) or (ii) following the Distribution Date and prior to the Redemption Date or
Final Expiration Date, pursuant to the exercise of stock options or under any employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company, which
options or securities were outstanding prior to the Distribution Date. 

        Accordingly,
in consideration of the premises and the mutual agreements herein set forth, the parties hereto hereby agree as follows: 

        Section 1.    Certain Definitions.    For purposes of this
Agreement, the following terms have the meanings indicated: 

        (a)   "Acquiring Person" shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall
be the Beneficial Owner of 15% (the "Designated Percentage") or more of the Common Shares of the Company then outstanding, but shall not include
(i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company or of any Subsidiary of the Company or (iv) any entity holding Common
Shares for or pursuant to the terms of any such plan. Notwithstanding the foregoing, 

          (i)  No
Person shall become an Acquiring Person if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an Acquiring Person
has become such
inadvertently, and such Person as promptly as practicable takes such actions as may be necessary so that such Person would no longer be considered an Acquiring Person. 

         (ii)  No
Person shall become an Acquiring Person as the result of an acquisition of Common Shares by the Company that, by reducing the number of shares outstanding, increases
the proportionate number of shares beneficially owned by such Person and such Person's Affiliates and Associates to the Designated Percentage or more of the Common Shares of the Company then
outstanding; provided, however, that if a Person, together with such Person's Affiliates and Associates,
shall become the Beneficial Owner of the Designated Percentage or more of the Common Shares of the Company then outstanding by reason of share purchases by the Company and such Person, together with
its Affiliates and Associates, shall, after public announcement of such share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company, then such Person
shall be deemed to be an "Acquiring Person." 

        (iii)  St.
Paul Venture Capital ("St. Paul") shall not be deemed an "Acquiring Person" until such time as St. Paul and its
Affiliates and Associates shall be the Beneficial Owner of more than 25% of the Common Shares then outstanding or until such time as St. Paul or its Affiliates or Associates shall be required to
file a report of beneficial ownership on Schedule 13D reporting holdings in excess of 25% of the Company's Common Shares. 

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        (iv)  Canaan
Partners ("Canaan") shall not be deemed an "Acquiring Person" until such time as Canaan and its Affiliates and
Associates shall be the Beneficial Owner of more than 17% of the Common Shares then outstanding or until such time as Canaan or its Affiliates or Associates shall be required to file a report
of beneficial ownership on Schedule 13D reporting holdings in excess of 17% of the Company's Common Shares. 

        (b)   "Affiliate" and "Associate" shall have the following meanings: 

          (i)  An
"Affiliate" of, or a Person "affiliated" with, a specified Person, is
a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. For this purpose,
"control" (including the terms "controlling," "controlled
by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; 

         (ii)  The
term "Associate" used to indicate a relationship with any Person shall mean (A) any corporation or
organization (other than the Company or a majority-owned subsidiary of the Company) of which
such Person is an officer or partner or is, directly or indirectly, the Beneficial Owner of 10% or more of any class of equity securities, (B) any trust or other estate in which such Person has
a substantial beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity, and (C) any relative or spouse of such Person, or any relative of such spouse,
who has the same home as such Person or who is a director or officer of the Company or of any of its parents or Subsidiaries. 

        (c)   A
Person shall be deemed the "Beneficial Owner" of and shall be deemed to "beneficially
own" any securities: 

          (i)  that
such Person owns, directly or indirectly; 

         (ii)  that
such Person has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), written or otherwise,
or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided,  however, that a
Person shall not be deemed to be the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange
offer made by or on behalf of such Person until such tendered securities are accepted for purchase or exchange; or (B) the right to vote pursuant to any agreement, arrangement or understanding;  provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own,
any security if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or
consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D
under the Exchange Act (or any comparable or successor report); or 

        (iii)  that
are beneficially owned, directly or indirectly, by any other Person with which such Person has any agreement, arrangement or understanding (other than customary
agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), written or otherwise, for the purpose of acquiring, holding, voting
(except to the extent contemplated by the proviso to Section 1(c)(ii)(B)) or disposing of any securities of the Company. 

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        Notwithstanding
anything in this definition of Beneficial Ownership to the contrary, (A) the phrase "then outstanding," when used
with reference to a Person's Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such securities not
then actually issued and outstanding that such Person would be deemed to own beneficially hereunder, and (B) a Person who is a director or officer of the Company or who is an Affiliate or
Associate of a director or officer of the Company (each, an "Exempted Person") shall not be deemed to "beneficially own" Common Shares held by another
Exempted Person solely by reason of
any agreement, arrangement or understanding, written or otherwise, entered into in opposition to a transaction that, at the time such agreement, arrangement or understanding was entered into, has not
been approved or recommended by the Board of Directors to the stockholders of the Company. 

        (d)   "Business Day" shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions in the State of
California are not open for business. 

        (e)   "Close of Business" on any given date shall mean 5:00 p.m., California Time, on such date;  provided, however,
that if such date is not a Business Day it shall mean 5:00 p.m., California
Time, on the next succeeding Business Day. 

        (f)    "Common Shares" when used with reference to the Company shall mean the shares of common stock, par value $0.001 per
share, of the Company. "Common Shares" when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of such other
Person or, if such other Person is a Subsidiary of another Person, of the Person or Persons that ultimately control such first-mentioned Person. 

        (g)   "Designated Percentage" shall have the meaning set forth in Section 1(a) hereof. 

        (h)   "Distribution Date" shall mean the earlier of (i) the tenth day after the Shares Acquisition Date or
(ii) the tenth Business Day (or such later date as may be determined by action of the Board of Directors of the Company prior to such time as any Person becomes an Acquiring Person) after the
first public announcement of the intention of any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company or any
entity holding Common Shares for or pursuant to the terms of any such plan) to commence a tender or exchange offer the consummation of which would result in any such Person becoming an Acquiring
Person (including any such date that is after the date of this Agreement and prior to the issuance of the Rights). 

        (i)    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

        (j)    "Final Expiration Date" shall have the meaning set forth in Section 7(a) hereof. 

        (k)   "Person" shall mean any individual, firm, corporation, partnership, limited partnership, business trust, limited
liability company, unincorporated association or any other entity, and shall include any successor (by merger or otherwise) of such entity. 

        (l)    "Purchase Price" shall have the meaning set forth in Section 7(b) hereof. 

        (m)  "Preferred Shares" shall mean shares of Series A Junior Participating Preferred Stock, par value $0.001 per share,
of the Company having the rights and preferences set forth in the Certificate of Designations attached to this Agreement as Exhibit A. 

        (n)   "Redemption Date" shall have the meaning set forth in Section 7(a) hereof. 

        (o)   "Rights" shall have the meaning set forth in the second paragraph of this Agreement,  provided, however, that none
of the following shall be deemed "Rights" or "outstanding Rights" for any
purpose under this Agreement from and after the effective time of the event indicated: (i) Rights that have become Void Rights pursuant to Section 7(f) hereof, and upon such 

3

 

occurrence,
all Right Certificates therefor shall be null and void and shall not be deemed "outstanding Right Certificates"; (ii) all rights that have been redeemed pursuant to
Section 23 hereof, and upon such occurrence, all Right Certificates therefor shall represent only the right to receive the consideration provided in Section 23 hereof and shall not be
deemed "outstanding Right Certificates", and (iii) any Rights that have been exchanged pursuant to Section 24 hereof, and upon such occurrence, all Right Certificates therefor shall
represent only the right to receive the consideration provided in Section 24 and shall not be deemed "outstanding Right Certificates". 

        (p)   "Shares Acquisition Date" shall mean the earlier of the date of (i) the public announcement by the Company or an
Acquiring Person that an Acquiring Person has become such or (ii) the public disclosure of facts by the Company or an Acquiring Person indicating that an Acquiring Person has become such. 

        (q)   "Subsidiary" of any Person shall mean any Person of which a majority of the voting power of the voting equity securities
or equity interest is owned, directly or indirectly, by such Person. 

        (r)   A
"Successor" shall mean the estate or legal representative of a deceased individual, the beneficiary of a deceased
individual's estate, a trust created by a deceased individual as grantor, or the beneficiary of a trust created by a deceased individual as grantor. 

        (s)   "Void Rights" shall have the meaning set forth in Section 7(f). 

        Section 2.    Appointment of Rights Agent.    The Company
hereby appoints the Rights Agent to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to
time appoint such co-Rights Agents as it may deem necessary or desirable upon ten days' prior written notice to the Rights Agent. The Rights Agent shall have no duty to supervise, and
shall in no event be liable for, the acts or omissions of any such co-Rights Agent. 

        Section 3.    Evidence of Rights Before Distribution Date; Transfer;
Legends.    

        (a)   From
the Record Date until the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date, (x) Rights will be evidenced by the
certificates for Common Shares registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates (as defined
below), and (y) Rights will be transferable only in connection with the transfer of Common Shares. On the Record Date, or as soon as practicable thereafter, the Company will send a copy of a
Summary of Stock Purchase Rights, in substantially the form of Exhibit B hereto (the "Summary of
Rights"), by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the Record Date, at the address of such holder shown on
the records of the Company. Until the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date, the surrender for transfer of any certificate for Common Shares outstanding
on the Record Date, with or without a copy of the Summary of Rights attached thereto, shall also constitute the surrender for transfer of the Rights associated with the Common Shares represented
thereby. 

        (b)   Certificates
for Common Shares that become outstanding (including, without limitation, reacquired Common Shares referred to in the last sentence of this
Section 3(b)) after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have impressed on, printed on, written on or
otherwise affixed to them the following legend: 

THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS (THE "RIGHTS") AS SET FORTH IN A RIGHTS
AGREEMENT BETWEEN DEXCOM, INC. (THE "COMPANY") AND AMERICAN STOCK TRANSFER & TRUST COMPANY, AS RIGHTS AGENT, DATED AS
OF                        ,
2005, AS SUCH  

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 MAY SUBSEQUENTLY BE AMENDED (THE "RIGHTS AGREEMENT"), THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT
THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE CERTIFICATES AND WILL NO LONGER BE
EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR. AS DESCRIBED IN
SECTION 7(F) OF THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY ANY PERSON WHO BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN OTHER PERSONS SHALL BECOME NULL AND
VOID.

In
the event that the Company purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed cancelled
and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Shares that are no longer outstanding. 

        Section 4.    Evidence of Rights After Distribution Date; Form of Right Certificates;
Countersignatures.    

        (a)   From
and after the Distribution Date until the earlier of the Redemption Date or the Final Expiration Date, Rights will be evidenced solely by Right Certificates that,
together with the forms of election to purchase Preferred Shares and of assignment to be printed on the reverse thereof, shall be substantially in the form set forth as  Exhibit C hereto (each, a
"Right Certificate"), which may have such marks of identification or
designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and which do not affect the rights, duties or responsibilities of the Rights Agent and as
are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation
of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the other provisions of this Agreement, the Right Certificates shall entitle the holders
thereof to purchase such number of one one-hundredths of a Preferred Share as shall be set forth therein at the Purchase Price, but the number of such one one-hundredths of a
Preferred Share and the Purchase Price shall be subject to adjustment as provided herein. 

        (b)   The
Right Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, any of its Vice Presidents,
or its Treasurer, either manually or by facsimile signature, shall have affixed thereto the Company's seal or a facsimile thereof, and shall be
attested by the Secretary or any Assistant Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be manually countersigned by the Rights Agent (unless
applicable exchange rules and law permit facsimile signature, in which case the Rights Agent signature may be by facsimile) and shall not be valid for any purpose unless countersigned. In case any
officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the
Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the individual who signed such
Right Certificates had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf of the Company by any individual who, at the actual date of the execution of such
Right Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Rights Agreement any such individual was not such an officer. 

5

   
        Section 5.    Distribution of Certificates; Registration.    

        (a)   As
soon as practicable after the Distribution Date (and so long as the Redemption Date and the Final Expiration Date shall not have occurred), the Company will prepare
and execute, the Rights Agent will countersign and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary information, send) by first-class,
insured, postage-prepaid mail to each record holder of Common Shares as of the Close of Business on the Distribution Date (other than the holder of Void Rights (as defined in Section 7(f)
hereof), at the address of such holder shown on the records of the Company, Rights Certificates evidencing one Right for each Common Share so held. 

        (b)   Following
the Distribution Date and receipt by the Rights agent of all relevant information, the Rights Agent will keep or cause to be kept, at its office, books for
registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates, the number of Rights evidenced
on its face by each of the Right Certificates and the date of each of the Right Certificates. 

        Section 6.    Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates.    

        (a)   Subject
to the provisions of Section 14 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the
earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing Void Rights or Rights that have been exchanged
pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number
of one one-hundredths of a Preferred Share as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right
Certificates to be transferred, split up, combined or exchanged at the office of the Rights Agent. Thereupon the Company shall execute and the Rights Agent shall countersign and deliver to the Person
entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient for all taxes and governmental charges that may be
imposed in connection with any transfer, split up, combination or exchange of Right Certificates. The Rights Agent shall have no duty or obligation under this Section 6 unless and until it is
satisfied that all such taxes and/or charges have been paid. 

        (b)   Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and,
at the Company's request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and, (i) in case of loss, theft or destruction, of indemnity or
security satisfactory to them, or (ii) in the case of mutilation, upon surrender to the Rights Agent and cancellation of the Right Certificate, then, in either such case, the Company will make
and deliver a new Right Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 

        Section 7.    Exercise of Rights; Purchase Price; Expiration Date; Void
Rights.    

        (a)   The
registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the
Distribution Date upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent,
together with payment of the Purchase Price for each one one-hundredth of a Preferred Share as to which the 

6

 

Rights
are exercised and payment of all transfer taxes and governmental charges required to be paid by the holder of such Right Certificate as provided in Section 9 hereof, at or prior to the
earliest of (i) the Close of Business on                        , 2015 (the "Final Expiration
Date"), (ii) the time at which the Rights are
redeemed as provided in Section 23 hereof (the "Redemption Date"), or (iii) the time at which such Rights are exchanged as provided in
Section 24 hereof. 

        (b)   The
purchase price for each one one-hundredth of a Preferred Share pursuant to the exercise of a Right (the "Purchase
Price") shall initially be $150.00, shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United
States of America in accordance with Section 7(c) hereof. 

        (c)   Upon
receipt of a Right Certificate representing exercisable Rights within the time permitted in Section 7(a), with the form of election to purchase and
certificate duly executed, accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to all applicable taxes and governmental charges required to be paid by the
holder of such Right Certificate in accordance with Section 9 hereof by certified check, cashier's check or money order payable to the order of the Company, the Rights Agent shall promptly
(i)(A) requisition from any transfer agent of the Preferred Shares certificates for the number of one-one hundredths of a Preferred Share to be purchased, and the Company hereby
irrevocably authorizes its transfer agent to comply with all such requests, or (B) requisition from any depositary agent for the Preferred Shares depositary receipts representing such number of
one one-hundredths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent
with the depositary agent), and the Company hereby directs the depositary agent to comply with all such requests, (ii) when appropriate, requisition from the Company
the amount of cash to be paid in lieu of issuance of fractional Preferred Shares in accordance with Section 14 hereof, (iii) after receipt of such certificates or depositary receipts,
cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder and (iv) when
appropriate, after receipt, deliver such cash to or upon the order of the registered holder of such Right Certificate. 

        (d)   In
case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to
the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to such holder's duly authorized assigns, subject to the provisions of
Section 6 and Section 14 hereof. 

        (e)   The
Company covenants and agrees that it will cause to be reserved and kept available, out of its authorized and unissued Preferred Shares or any Preferred Shares held
in its treasury, the number of Preferred Shares that will be sufficient to permit the exercise in full of all Rights in accordance with this Section 7. 

        (f)    From
and after the time that any Person becomes an Acquiring Person, (i) all Rights that are or were acquired or beneficially owned by such Acquiring Person (and
all Rights that are or were acquired or beneficially owned by each Associate and by each Affiliate of such Acquiring Person) shall be null and void without any further action on the part of the
Company, the Rights Agent or any other Person (all such Rights, "Void Rights") and (ii) any holder thereof shall thereafter have no right to
exercise such Void Rights under any provision of this Agreement. No Right Certificate shall be issued pursuant to Sections 5 or 6 that represents Rights beneficially owned by an Acquiring Person whose
Rights have become Void Rights pursuant to the preceding sentence or by any Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights to an
Acquiring Person whose Rights have become Void Rights pursuant to the preceding sentence or to any Associate or Affiliate thereof or to any nominee of 

7

 

such
Acquiring Person, Associate or Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights have become Void Rights pursuant to the
preceding sentence or for transfer to any Associate or Affiliate thereof shall be cancelled. This Section 7(f) shall apply not only to an initial Acquiring Person, and each of its Affiliates
and Associates, but also to all subsequent Acquiring Persons, and each of their Affiliates and Associates. 

        (g)   Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a
registered holder upon the occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall have (i) properly completed and signed the certificate
following the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights agent shall reasonably request. 

        Section 8.    Cancellation and Destruction of Right
Certificates.    All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or
to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be
issued in lieu thereof except as expressly permitted by any of the provisions of this Rights Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights
Agent shall cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Right
Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the
Company. 

        Section 9.    Status and Availability of Preferred
Shares.    The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares delivered upon valid exercise of
Rights in compliance with Section 7 shall, at the time of delivery of the certificates for such Preferred Shares (subject to payment of the Purchase Price), be duly and validly authorized and
issued and fully paid and non-assessable shares. 

        The
Company further covenants and agrees that it will pay when due and payable any and all taxes and governmental charges that may be payable in respect of the issuance or delivery of
the Right Certificates or of any Preferred Shares upon the exercise of Rights. The Company shall not, however, be required (i) to pay any tax or governmental charge that may be payable in
respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares in a name other than that
of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or (ii) to deliver any certificates or depositary receipts for Preferred Shares upon
the exercise of any Rights until all such taxes and governmental charges shall have been paid (all such taxes and governmental charges being payable by the holder of such Right Certificate at the time
of surrender for exercise) or until it has been established to the Company's reasonable satisfaction that no such tax or governmental charge is due. 

        Section 10.    Preferred Shares Record Date.    Each Person in
whose name any certificate for Preferred Shares is issued upon the valid exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares represented
thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable taxes and
governmental charges) was made. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Shares for which
the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive 

8

 

rights,
and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

        Section 11.    Adjustment of Purchase Price, Number of Shares or Number of
Rights.    The Purchase Price, the number of Preferred Shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time
as provided in this Section 11, provided, however, that no adjustment, payment or distribution of
securities or other change in the Rights or securities issuable upon exercise of any Rights as provided in this Section 11 shall apply to any Void Rights. 

        (a)   (i)    In
the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Shares payable in Preferred
Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or (D) issue any shares of its
capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such dividend,
subdivision, combination or reclassification, and the number and kind of shares of capital stock that would be issuable upon exercise of a Right on such date (if such Rights were then exercisable),
shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock that, if such Right
had been exercised immediately prior to such date, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or
reclassification; provided, however, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of the class or series of capital stock of the Company issuable upon exercise of one Right. 

         (ii)  Subject
to Section 7(f) and Section 24 of this Agreement, in the event that any Person shall become an Acquiring Person, unless the event causing the
Designated Percentage threshold to be crossed and the Person to thereby become an Acquiring Person is a transaction set forth in Section 13 hereof, each holder of a Right shall thereafter have
a right to receive, upon exercise of such Right at a price equal to the then current Purchase Price multiplied by the number of one one-hundredths of a Preferred Share for which a Right is
then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of the Company as shall equal the result obtained by
(x) multiplying the then current Purchase Price by the number of one one-hundredths of a Preferred Share for which a Right is then exercisable and dividing that product by
(y) 50% of the then current per share market price of the Company's Common Shares (determined pursuant to Section 11(d) hereof) on the date such Person became an Acquiring Person. 

        (iii)  In
the event that the number of Common Shares that are authorized by the Company's certificate of incorporation and not outstanding or subscribed for, or reserved or
otherwise committed for issuance for purposes other than upon exercise of the Rights, is not sufficient to permit the holder of each Right to purchase the number of Common Shares to which such holder
would be entitled upon the exercise in full of the Rights in accordance with Section 11(a)(ii), the Company shall: (A) determine the excess of (1) the value of the Common Shares
issuable upon the exercise of a Right (calculated as provided in the last sentence of this Section 11(a)(iii)) pursuant to Section 11(a)(ii) hereof (the
"Current Value") over (2) the Purchase Price (such excess, the "Spread"), and (B) with
respect to each Right, make adequate provision to substitute for such Common Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price,
(3) Common Shares or other equity securities of the Company (including, without limitation, shares of the Company's Preferred Stock, or units of shares of the Company's capital stock) that the
Board of Directors of the Company has determined to have the same value as Common Shares (such equity securities, "common stock equivalents")),
(4) debt securities of the 

9

 

Company,
(5) other assets or (6) any combination of the foregoing, having an aggregate value equal to the Current Value, where such aggregate value has been determined by the Board of
Directors of the Company in good faith; provided, however, if the Company shall not have made adequate
provision to deliver value pursuant to clause (B) of this paragraph within thirty (30) days following the first occurrence of an event triggering the rights to purchase Common Shares
described in Section 11(a)(ii) (the "Section 11(a)(ii) Trigger Date"), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right without requiring payment of the Purchase Price, Common Shares (to the extent available) and then, if necessary, cash, which shares and cash have an aggregate
value equal to the Spread. If the Board of Directors of the Company shall determine in good faith that it is likely that sufficient additional Common Shares could be authorized for issuance upon
exercise in full of the Rights, the thirty (30) day period set forth above may be extended to the extent necessary, but not more than ninety (90) days after the
Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional shares (such period, as it may be extended, the
"Substitution Period"). To the extent that the Company determines that some action needs to be taken pursuant to the first and/or second sentences of
this Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(g) hereof, that such action shall apply uniformly to all Rights, and (y) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made
pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall make a public announcement, and shall deliver to the Rights Agent a
statement, stating that the exercisability of the Rights has been temporarily suspended. At such time as the suspension is no longer in effect, the Company shall make another public announcement, and
deliver to the Rights Agent a statement, so stating. For purposes of this Section 11(a)(iii), the value of the Common Shares shall be the current per share market price (as determined pursuant
to Section 11(d)(i) hereof) of the Common Shares on the Section 11(a)(ii) Trigger Date and the value of any "common stock equivalent" shall be deemed to have the same value
as the Common Shares on such date. 

        (b)   In
case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred Shares entitling them to subscribe for or
purchase Preferred Shares (or shares having the same rights, privileges and preferences as the Preferred Shares ("equivalent preferred shares")) or
securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per share, if a security
convertible into Preferred Shares or equivalent preferred shares) less than the then current per share market price of the Preferred Shares (as defined in Section 11(d)) on such record date,
the Purchase Price to be in effect after such record date shall be determined by multiplying (x) the Purchase Price in effect immediately prior to such record date by (y) a fraction,
(1) the numerator of which shall be the sum of (A) number of Preferred Shares outstanding on such record date plus (B) the number of Preferred Shares that the aggregate offering
price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would
purchase at such current market price and (2) the denominator of which shall be the sum of (A) number of Preferred Shares outstanding on such record date plus (B) the number of
additional Preferred Shares and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible);  provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right be
less than the aggregate par value of the class or series of shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration
part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be
described in a statement 

10

 

filed
with the Rights Agent and shall be conclusive for all purposes. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be
adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed. 

        (c)   In
case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend
payable in Preferred Shares) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying (x) the Purchase Price in effect immediately prior to such record date by (y) a fraction, (1) the numerator of which shall be the difference of
(A) then current per share market price of the Preferred Shares on such record date, less (B) the fair market value (as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes) of the portion of the assets or evidences of indebtedness so to be
distributed or of such subscription rights or warrants applicable to one Preferred Share and (2) the denominator of which shall be such current per share market price of the Preferred Shares;  provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be
less than the aggregate par value of the class or series of shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be made successively whenever such a
record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price that would then be in effect if such record date had
not been fixed. 

        (d)   (i)    For
the purpose of any computation hereunder, the "current per share market price" of any security (a
"Security" for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of such
Security for the 30 consecutive Trading Days (as such term is hereinafter defined) immediately prior to such date; provided,  however, that in the event
that the current per share market price of the Security is determined during a period following the announcement by the
issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such shares, or (B) any subdivision,
combination or reclassification of such Security and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such
subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to reflect the current market price per share equivalent
of such Security. The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular
way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Security
is not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price, or, if
not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by The Nasdaq Stock Market
("Nasdaq") or such other system then in use, or, if on any such date the Security is not quoted by any such organization, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in the Security selected by the Board of Directors of the Company. The term "Trading
Day" shall mean a day on which the principal national securities exchange on which the Security is 

11

 

listed
or admitted to trading is open for the transaction of business or, if the Security is not listed or admitted to trading on any national securities exchange, a Business Day. 

         (ii)  For
the purpose of any computation hereunder, the "current per share market price" of the Preferred Shares shall be determined in accordance with the method set forth
in Section 11(d)(i). If the Preferred Shares are not publicly traded, the "current per share market price" of the Preferred Shares shall be conclusively deemed to be the current per share
market price of the Common Shares as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect each stock split, stock combination, stock dividend or similar transaction
occurring after the date hereof), multiplied by one hundred. If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, "current per share market price" shall mean
the fair value per share thereof as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be
conclusive for all purposes. 

        (e)   No
adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price;  provided, however, that any adjustments that by reason of this Section 11(e) are not required to
be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one
one-millionth of a Preferred Share or one
one-thousandth of any other share or security as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall
be made no later than three years from the date of the transaction that, but for such sentence of this Section 11(e), would have required such adjustment. 

        (f)    If
as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of
capital stock of the Company other than Preferred Shares, the number of such other shares so receivable upon exercise of any Right shall thereafter be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Section 11(a) through (c), inclusive, and the provisions of Sections
7, 9, 10 and 13 with respect to the Preferred Shares shall apply on like terms to any such other shares. 

        (g)   All
Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted
Purchase Price, the number of one one-hundredths of a Preferred Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided
herein. 

        (h)   Unless
the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as a result of the calculations made
in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one
one-hundredths of a Preferred Share (calculated to the nearest one one-millionth of a Preferred Share) obtained by (i) multiplying (x) the number of one
one-hundredths of a share covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and
(ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 

        (i)    The
Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights in substitution for any adjustment in the number of one
one-hundredths of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the
number of one one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number
of Rights and 

12

 

outstanding
thereafter shall become that number of Rights (calculated to the nearest one one-thousandth) obtained by dividing (x) the Purchase Price in effect immediately prior to
adjustment of the Purchase Price by (y) the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement (with prompt notice thereof
to the Rights Agent) of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date
may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been distributed, shall be at least ten days later than the date of the public
announcement. If Right Certificates have been distributed, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to
be distributed to holders of record of Right Certificates on such record date, Right Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be
entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by
such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after
such adjustment. Right Certificates to be so distributed shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders of record of
Right Certificates on the record date specified in the public announcement. 

        (j)    Irrespective
of any adjustment or change in the Purchase Price or the number of one one-hundredths of a Preferred Share issuable upon the exercise of the
Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one one-hundredths of a Preferred Share that were expressed in
the initial Right Certificates issued hereunder. 

        (k)   Before
taking any action that would cause an adjustment reducing the Purchase Price below one one-hundredth of the then par value of the Preferred Shares
issuable upon exercise of the Rights, the Company shall take any corporate action that may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully
paid and non-assessable Preferred Shares at such adjusted Purchase Price. 

        (l)    In
any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the
Company may elect to defer (and shall promptly notify the Rights Agent of any such elections), until the occurrence of such event, the issuing to the holder of any Right exercised after such record
date, the additional Preferred Shares and other capital
stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise on
the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company
shall deliver to such holder a due bill or other appropriate instrument evidencing such holder's right to receive such additional shares upon the occurrence of the event requiring such adjustment. 

        (m)  Anything
in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any (i) subdivision, combination or
consolidation of the Preferred Shares, (ii) issuance wholly for cash of Preferred Shares or securities that by their terms are convertible into or exchangeable for Preferred Shares,
(iii) dividends on Preferred Shares payable in Preferred Shares or (iv) issuance of any rights, options or warrants referred to hereinabove in Section 11(b), hereafter made by the
Company to holders of its Preferred Shares shall not be taxable to such stockholders. 

13

  

        (n)   In
the event that at any time after the date of this Agreement, the Company shall (i) declare or pay any dividend on the Common Shares payable in Common Shares or
(ii) effect a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise other than by payment of dividends in Common Shares) into a greater or lesser
number of Common Shares, then in any such case (i) the number of one one-hundredths of a Preferred Share purchasable after such event upon proper exercise of each Right shall be
determined by multiplying (x) the number of one one-hundredths of a Preferred Share so purchasable immediately prior to such event by (y) a fraction, (1) the numerator
of which is the number of Common Shares outstanding immediately before such event and (2) the denominator of which is the number of Common Shares outstanding immediately after such event, and
(ii) each Common Share outstanding immediately after such event shall have issued with respect to it that number of Rights that each Common Share outstanding immediately prior to such event had
issued with respect to it. The adjustments provided for in this Section 11(n) shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination or
consolidation is effected. 

        (o)   The
Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Sections 23, 24 and 27, take (or permit any Subsidiary to take)
any action if the purpose of such action is to, or if at the time such action is taken it is reasonably foreseeable that such action will, diminish substantially or eliminate the benefits intended to
be afforded by the Rights. 

        Section 12.    Certificate of Adjusted Purchase Price or Number of
Shares.    Whenever an adjustment is made as provided in Sections 11 or 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such
adjustment, and a brief statement of the facts and computations accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Shares or the
Preferred Shares a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof. The Rights Agent shall be
fully protected in relying on any such certificate and on any adjustment therein contained and shall have no duty with respect to and shall not be deemed to have knowledge of any adjustment unless and
until it shall have received such certificate. 

        Section 13.    Consolidation, Merger or Sale or Transfer of Assets or Earning
Power.    In the event that any Person shall become an Acquiring Person, and, directly or indirectly, (a) the Company shall consolidate with, or merge with and
into, an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, (b) an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, shall consolidate with the Company,
or merge with and into the Company and the Company shall be the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the Common Shares shall be
changed into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other property, or (c) the Company shall sell or otherwise transfer (or one or more
of its Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, then, and in each such case, proper provision shall be made so that (i) each holder of a Right
(other than Rights that have become Void Rights) shall thereafter have the right to receive, upon the exercise thereof at a price equal to the then current Purchase Price multiplied by the number of
one one-hundredths of a Preferred Share for which a Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares
of the Person in the transaction (including the Company as successor thereto or as the surviving corporation) who is issuing the consideration with the greatest fair market value to the Company and
its stockholders in connection with such transaction (the "Principal Issuer") as shall equal the result obtained by (A) multiplying the then
current Purchase Price by the number of one one-hundredths of a 

14

 

Preferred
Share for which a Right is then exercisable and dividing that product by (B) 50% of the then current per share market price of the Common Shares of the Principal Issuer (determined
pursuant to Section 11(d) hereof) on the date of consummation of such consolidation, merger, sale or transfer; (ii) the Principal Issuer shall be liable for, and shall assume, by virtue
of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term "Company" shall thereafter be deemed to refer to the
Principal Issuer; and (iv) the Principal Issuer shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares in accordance with
Section 9 hereof) in connection with such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to
the Common Shares thereafter deliverable upon the exercise of the Rights. The Company covenants and agrees that it shall not consummate any such consolidation, merger, sale or transfer unless prior
thereto the Company and the Principal Issuer shall have executed and delivered to the Rights Agent a supplemental agreement so providing. The Company shall not enter into any transaction of the kind
referred to in this Section 13 if at the time of such transaction there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements that, as a result of
the consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights. The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers. 

        Section 14.    Fractional Rights and Fractional Shares.    

        (a)   The
Company shall not be required to issue fractions of Rights or to distribute Right Certificates that evidence fractional Rights. In lieu of such fractional Rights,
there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be
issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be
the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing price for any day shall be the last
sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Rights are listed or
admitted to trading or, if the Rights are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by Nasdaq or such other system then in use or, if on any such date the Rights are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors of the Company. If on any such date no such
market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board of Directors of the Company shall be used. 

        (b)   The
Company shall not be required to issue fractions of Preferred Shares (other than fractions that are integral multiples of one one-hundredth of a
Preferred Share) upon exercise of the Rights or to distribute certificates that evidence fractional Preferred Shares (other than fractions that are integral multiples of one one-hundredth
of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-hundredth of a Preferred Share may, at the election of the Company, be evidenced by depositary
receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it; provided, that such agreement shall provide that the
holders of such depositary receipts shall have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred Shares represented by 

15

 

such
depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-hundredth of a Preferred Share, the Company shall pay to the registered holders
of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fractions of the current market value of one Preferred Share. For the purposes of
this Section 14(b), the current market value of a Preferred Share shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise. 

        (c)   The
holder of a Right by the acceptance of the Right expressly waives any right to receive fractional Rights or fractional shares upon exercise of a Right (except as
provided above). 

        Section 15.    Rights of Action.    All rights of action in
respect of this Agreement, excepting the rights of action of the Rights Agent and the Company, are vested in the respective registered holders of the Rights; and any registered holder of any Right
may, without the consent of the Rights Agent or of the holder of any other Right, in such holder's own behalf and for such holder's own benefit, enforce, and
may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder's right to exercise the Rights in the manner provided in this
Agreement and in any issued and outstanding Right Certificate representing such Right. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically
acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive
relief against actual or threatened violations of the obligations of any Person subject to, this Agreement. 

        Section 16.    Agreement of Right Holders.    Every holder of a
Right, by accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 

        (a)   prior
to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Shares; 

        (b)   after
the Distribution Date, the Right Certificates are transferable only on the registry books maintained by the Rights Agent if surrendered at the office of the Rights
Agent, duly endorsed or accompanied by a proper instrument of transfer and payment of taxes and governmental changes, all as otherwise provided in Section 6; and 

        (c)   the
Company and the Rights Agent shall deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution Date, the associated Common Shares
certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the associated Common
Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice (other than
notice provided by transfer documentation properly completed and tendered in accordance with this Agreement) to the contrary. 

        (d)   notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as
a result of its failure to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment or ruling (whether interlocutory
final) issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted
by any governmental authority prohibiting or otherwise restraining performance of such obligation. 

        Section 17.    Right Certificate Holder Not Deemed a
Stockholder.    No holder, as such, of any Right shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares or any
other securities of the Company that may at any time be issuable on the exercise of such Rights nor shall anything contained herein or in any Right Certificate be construed to confer upon the 

16

 

holder
of any Rights, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25 hereof), or to receive
dividends or subscription rights, or otherwise, until such Right shall have been properly exercised in accordance with the provisions hereof. 

        Section 18.    Compensation and Indemnity of the Rights
Agent.    (a)    The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on
demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, delivery, amendment, administration and execution of this Agreement and the
exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent (including employees, directors, officers and agents of the Rights Agent (the Rights Agent
together with such Persons, the "Agent Indemnitees")) for, and to hold each Agent Indemnitee harmless against, any loss, liability, damage, judgment,
fine, penalty, claim, demand, settlement, cost or expense (each an "Agent Loss"), incurred on the part of such Agent Indemnitee for any action taken,
suffered or omitted by any of the Agent Indemnitees in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability
in the premises, provided, however, that the Company shall not be required to indemnify any Agent Indemnitee hereunder for any Agent Loss that resulted from any action taken, suffered or omitted by
the Agent Indemnitee in bad faith or through gross negligence or willful misconduct of the Rights Agent or any other Agent Indemnity, as each is finally determined by a court of competent
jurisdiction, and the respective Agent Indemnitee shall promptly refund to the Company all sums advanced to such Agent Indemnitee as or against indemnification for Agent Losses upon such judicial
determination. If an Agent Indemnitee brings an action to enforce its right to indemnification under this Section 18, the Company shall pay the costs of such action to the extent that such
Agent Indemnitee is a prevailing party in such litigation. Anything to the contrary notwithstanding, in no event shall any Agent Indemnitee be liable for special, punitive, indirect, consequential or
incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if such Agent Indemnitee has been advised of the likelihood of such loss or damage. Any liability of
an Agent Indemnitee under this Rights Agreement will be limited to the amount of fees paid by the Company to the Rights Agent. The provisions of this Section 18 and Section 20 below
shall survive the termination of this Agreement, the exercise or expiration of the Rights and the resignation or removal of the Rights Agent. 

        (b)   The
Rights Agent shall be authorized to rely on, shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in
connection with the acceptance and administration of this Agreement or the exercise or performance of its duties hereunder in reliance upon any Right Certificate or certificate for Common Stock or for
other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement, or other
paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons. 

        Section 19.    Merger or Consolidation or Change of Name of Rights
Agent.    Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any
merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the shareholder service business of the Rights Agent or any successor
Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that
such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall 

17

 

succeed
to the agency created by this Agreement any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full
force provided in the Right Certificates and in this Agreement. 

        In
case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may
adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, the Rights
Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Agreement. 

        Section 20.    Rights and Duties of Rights Agent.    The Rights
Agent undertakes only the duties and obligations expressly imposed by this Agreement upon the following terms and conditions, by all of which the Company and, by their acceptance of Rights, the
holders of Rights shall be bound: 

        (a)   The
Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the advice or opinion of such counsel shall be full and complete
authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it in good faith and in accordance with
such advice or opinion. 

        (b)   Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter be proved or established by
the Company prior to taking, suffering or omitting any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the General Counsel, the Treasurer
or the Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for
or in respect of any action taken, suffered or omitting in good faith by it under the provisions of this Agreement in reliance upon such certificate. 

        (c)   The
Rights Agent shall be liable hereunder only for its own bad faith, gross negligence or willful misconduct as finally determined by a court of competent jurisdiction.
The Rights Agent makes no representation or warranty with respect to and is not responsible or liable for the validity, value or availability of the Rights, the Right Certificates or the Preferred
Shares. 

        (d)   The
Rights Agent shall be protected and shall incur no liability for any action taken, suffered or omitted by it in connection with, its administration of this Agreement
in reliance upon any Right Certificate or certificate for the Common Shares or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit,
letter, notice, direction, consent, certificate, statement or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the
proper Person or Persons, or otherwise upon the advice or opinion of counsel as set forth in this Section 20. 

        (e)   The
Rights Agent shall not be assumed to have knowledge of and shall not be required to take note of or act upon any fact or circumstance including, without limitation,
the occurrence of facts or circumstances leading to the Shares Acquisition Date or the Distribution Date, facts or circumstances relating to whether any Person may be an Affiliate or an Associate of
any other Person, facts or circumstances relevant to an adjustment to the Purchase Price, facts or 

18

 

circumstances
relevant to events described in Section 13 (mergers, etc.), Section 23 (redemption) and Section 24 (exchange) that may be relevant to performance by the Rights Agent
under this Agreement unless the Company has provided written notice thereof to the Rights Agent; and the Company agrees that it will (i) promptly notify the Rights Agent in writing of the
occurrence of the Shares Acquisition Date (including the identity of the Acquiring Person and the date on which the Shares Acquisition Date occurred), the Distribution Date, the Redemption Date, and
of any events described in Section 13 (merger), and (ii) promptly provide the Rights Agent with such other information as the Rights Agent may reasonably request in connection with the
performance of its duties under this Agreement. 

        (f)    The
Rights Agent shall not have any liability for or be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof
(except the due authorization and execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be
responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the
Rights (including the Rights becoming null and void pursuant to Section 7(f) hereof) or any change or adjustment in the terms of the Rights (including the manner, method or amount thereof)
provided for in Section 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights
evidenced by Right Certificates after receipt of the certificate described in Section 12 hereof, upon which the Rights Agent may rely); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any Preferred Shares will, when issued, be validly authorized and issued, fully paid and nonassessable. 

        (g)   The
Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts,
instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

        (h)   The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chairman of the
Board, the Chief Executive Officer, the President, any Vice President, the General Counsel, the Secretary or the Treasurer of the Company, and to apply to such officers for advice or instructions in
connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such officer or for any delay in acting while waiting
for those instructions. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or
omitted by the Rights Agent with respect to its duties or obligations under this Rights Agreement and the date on and/or after which such action shall be taken or omitted and the Rights Agent shall
not be liable for any action taken, suffered or omitted in accordance with a proposal included in any such application on or after the date specified therein (which date shall not be less than three
Business Days after the date any such officer actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless, prior to taking or omitting any
such action, the Rights Agent has received written instructions in response to such application specifying the action to be taken or omitted. 

        (i)    The
Rights Agent and any stockholder, director, Affiliate, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the
Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were
not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other Person. 

19

 

        (j)    The
Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or
agents, and, with regard to acts performed through its attorneys, the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or for any
loss to the Company resulting from any such act, default, neglect or misconduct, absent bad faith, gross negligence or willful misconduct of the Rights Agent (as finally determined by a court of
competent jurisdiction) in the selection and continued employment of such attorneys. 

        (k)   No
provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder or in the exercise of its rights if it reasonably believes that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 

        Section 21.    Change of Rights Agent.    The Rights Agent or
any successor Rights Agent may resign and be discharged from its duties under this Agreement upon 30 days' notice in writing mailed to the Company and to each transfer agent of the Common
Shares or Preferred Shares by registered or certified mail, and to the holders of the Right Certificates by first-class mail. The Company may remove the Rights Agent or any successor Rights Agent upon
30 days' notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Shares or Preferred Shares by registered or
certified mail, and to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right (who shall, with such notice, submit such holder's Right Certificate or, before the
Distribution Date, certificate representing Common Shares, for inspection by the Company), then the registered holder of any Right may apply to any court of the United States or of any state thereof
having competent jurisdiction over such matter for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (i) a Person
organized and doing business under the laws of the United States or of the State of California (or of any other state of the United States), so long as such Person in good standing, which is
authorized under such laws to exercise shareholder service powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as Rights
Agent a combined capital and surplus of at least $50 million dollars or (ii) an Affiliate of a Person described in clause (i) of this sentence. After appointment, the successor
Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent
shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the
purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Shares or
Preferred Shares, and mail a notice thereof in writing to the registered holders of Rights. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not
affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 

        Section 22.    Issuance of New Right
Certificates.    Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such form as may be approved by its Board of Directors to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Rights made in accordance with the provisions of this Agreement. In addition, following the Distribution Date and prior to the Redemption Date or Final 

20

 

Expiration
Date, in connection with the issuance or sale of Common Shares pursuant to the exercise of stock options or under any employee plan or arrangement or upon the exercise, conversion or
exchange of other securities of the Company, in each case, which options or securities are outstanding prior to the Distribution Date, the Board of Directors shall issue Right Certificates
representing the appropriate number of Rights in connection with such issuance or sale; provided,  however, that (i) no such Right Certificate shall be
issued and this sentence shall be null and void ab
initio if, and to the extent that, such issuance or this sentence would create a significant risk of or result in material adverse tax consequences to the Company or the Person
to whom such Right Certificate would be issued or would create a significant risk of or result in such options' or employee plans' or arrangements' failing to qualify for otherwise available special
tax treatment and (ii) no such Right Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 

        Section 23.    Redemption.    

        (a)   The
Board of Directors of the Company may, at its option, at any time from and after the Record Date and prior to such time as any Person becomes an Acquiring Person
(the "Redemption Period"), redeem all but not less than all the then outstanding Rights at a redemption price of $0.0001 per Right, appropriately
adjusted to reflect each stock split, stock combination, stock dividend or similar transaction occurring after the date hereof (such redemption price, as so adjusted, being hereinafter referred to as
the "Redemption Price"). After the Redemption Period has expired, the Board of Directors may not extend the period for redemption of the Rights or
otherwise provide for their redemption. The redemption of the Rights by the Board of Directors may be made effective at such time during the Redemption Period, on such basis and subject to such
conditions as the Board of Directors in its sole discretion may establish. 

        (b)   Immediately
upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to Section 23(a), and without any further
action and without any notice, the right to exercise all then outstanding Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The
Company shall promptly give notice to the Rights Agent and public notice of any such redemption; provided,  however, that the failure to give, or any defect
in, any such notice shall not affect the validity of such redemption. Within ten days after such action
of the Board of Directors ordering the redemption of the Rights pursuant to Section 23(a), the Company shall mail a notice of redemption to all the holders of the then outstanding Rights at
their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares. Any notice that
is mailed in the manner herein provided shall be deemed given upon mailing, whether or not the holder receives the notice. If
the payment of the Redemption Price is not included in such notice, each such notice shall state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of
its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than (i) as specifically set forth in this Section 23 or in
Section 24 hereof, or (ii) in connection with the purchase of Common Shares prior to the Distribution Date. 

        Section 24.    Exchange.    

        (a)   The
Board of Directors of the Company may, at its option, at any time after any Person becomes an Acquiring Person, authorize and direct the exchange of all or part of
the then outstanding and exercisable Rights (which shall not include Rights that have become Void Rights) for Common Shares at an exchange ratio (the "Exchange
Ratio") of one Common Share per Right, appropriately adjusted to reflect each stock split, stock combination, stock dividend or similar transaction occurring after the date
hereof. Notwithstanding the foregoing, the Board of Directors 

21

 

shall
not be empowered to effect such exchange at any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any such Subsidiary or
any entity holding Common Shares for or pursuant to the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of a majority of the Common
Shares then outstanding. 

        (b)   Immediately
upon the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant Section 24(a) hereof and without any further
action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of Common Shares equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give notice to the Rights Agent and public notice of any such exchange;  provided, however, that the failure to give, or any defect in, such notice shall not affect the validity
of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent.
Any notice that is mailed in the manner herein provided shall be deemed given when mailed, whether or not the holder receives the notice. Each such notice of exchange will state the method by which
the exchange of the Common Shares for Rights will be effected and, in the event of any partial exchange, the number of Rights that will be exchanged. Any partial exchange shall be effected pro rata
based on the number of Rights (other than Rights that have become Void Rights) held by each holder of Rights. 

        (c)   In
any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares (or common stock equivalents, as such term is defined in
Section 11(a)(iii) hereof) for Common Shares exchangeable for Rights, at the initial rate of one one-hundredth of a Preferred Share (or common stock equivalents) for each
Common Share, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Shares pursuant to the terms thereof, so that the
fraction of a Preferred Share delivered in lieu of each Common Share shall have the same voting rights as one Common Share. 

        (d)   In
the event that there shall not be sufficient Common Shares, Preferred Shares or common stock equivalents authorized by the Company's certificate of incorporation and
not outstanding or subscribed for, or reserved or otherwise committed for issuance for purposes other than upon exercise of Rights, to permit any exchange of Rights as contemplated in accordance with
this Section 24, the Company shall take all such action as may be necessary to authorize additional Common Shares, Preferred Shares or common stock equivalents for issuance upon exchange of the
Rights. 

        (e)   The
Company shall not be required to issue fractions of Common Shares or to distribute certificates that evidence fractional Common Shares. In lieu of such fractional
Common Shares, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise be issuable, an amount in cash equal to the
same fraction of the current per share market value of a whole Common Share. For the purposes of this Section 24(e), the current per share market value of a whole Common Share shall be the
closing price of a Common Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this
Section 24. 

        Section 25.    Notice of Certain Events.    

        (a)   In
case the Company shall propose (i) to pay any dividend payable in stock of any class to the holders of its Preferred Shares or to make any other distribution
to the holders of its Preferred Shares (other than a regular quarterly cash dividend), (ii) to offer to the holders of its Preferred Shares rights or warrants to subscribe for or to purchase
any additional Preferred Shares 

22

 

or
shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of its Preferred Shares (other than a reclassification involving only the
subdivision of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to
effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person,
(v) to effect the liquidation, dissolution or winding up of the Company or (vi) to declare or pay any dividend on the Common Shares payable in Common Shares or to effect a subdivision,
combination or consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares), then, in each such case, the Company shall give to the Rights Agent
and each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, or
distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding up is to take place and the date of
participation therein by the holders of the Common Shares and/or Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by
clause (i) or (ii) above at least ten days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action,
at least ten days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Common Shares and/or Preferred Shares, whichever shall be the
earlier. 

        (b)   If
any event set forth in Section 11(a)(ii) hereof shall occur, then the Company shall as soon as practicable thereafter give to each holder of a Right
Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights under
Section 11(a)(ii) hereof. 

        Section 26.    Notices.    Notices or demands authorized by
this Agreement to be given or made by the Rights Agent or by the holder of any Right to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed
(until another address is filed in writing with the Rights Agent) as follows: 

DexCom, Inc.

5555 Oberlin Drive

San Diego, California 92121

Attention: Corporate Secretary 

Subject
to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right to or on the Rights Agent
shall be
sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 

American
Stock Transfer & Trust Company

59 Maiden Lane

Plaza Level

New York, NY 10038

Attention: Herbert J. Lemmer, Vice President, General Counsel 

Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company. 

        Section 27.    Supplements and Amendments.    The Company may,
by resolution of its Board of Directors, from time to time, and the Rights Agent shall, if the Company directs, supplement or amend 

23

 

this
Agreement without the approval of any holders of Rights in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any
other provisions herein, or to make any other provisions or changes with respect to the Rights that the Company may deem necessary or desirable, including, without limitation, to modify or amend the
definition of Acquiring Person set forth in Section 1(a) hereof, to change the Purchase Price set forth in Section 7(b), or to extend or shorten the period for redemption of the Rights;  provided, however, that from and after such time as any Person becomes an Acquiring Person, this
Agreement shall not be amended in any manner that would adversely affect the interests of the holders of Rights (other than Void Rights of an Acquiring Person and its Affiliates and Associates),
including, without limitation, to extend the period for redemption of the Rights, or otherwise provide for their redemption, or to provide for an earlier Final Expiration Date. Any such supplement or
amendment will be evidenced by a writing signed by the Company and the Rights Agent. Upon the delivery of a certificate from an appropriate officer of the Company and, if requested by the Rights
Agent, an opinion of counsel, that states that the proposed supplement or amendment complies with this Section 27, the Rights Agent shall execute such supplement or amendment,  provided,
however, the Rights Agent shall not be obligated to enter into any amendment or supplement to
this Agreement that in the opinion of the Rights Agent, may adversely affect the rights, duties, liabilities of the Rights Agent. 

        Section 28.    Successors.    All the covenants and provisions
of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 

        Section 29.    Benefits of this Agreement.    Nothing in this
Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of the Rights any legal or equitable right, remedy or claim under this Agreement;
but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Rights. 

        Section 30.    Severability.    If any term, provision,
covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, then such term, provision, covenant or restriction shall
be enforced to the maximum extent permissible, and the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated. 

        Section 31.    Governing Law.    This Agreement and each Right
Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such
State applicable to contracts to be made and performed entirely within such State. 

        Section 32.    Counterparts.    This Agreement may be executed
in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

        Section 33.    Descriptive Headings.    Descriptive headings of
the several Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

        Section 34.    Entire Agreement.    This Agreement contains the
entire agreement between the parties with respect to the subject matter hereof. 

[Signatures
on Following Page] 

24

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Rights Agreement to be duly executed and attested, all as of the day and year first above written. 

	Company:	 	 
	

DEXCOM, INC.	
 	

 
	

By:	
 	

 
	
 	

 
	

Name:	
 	

Andrew P. Rasdal
	
 	

 
	

Title:	
 	
President and Chief Executive Officer
	
 	

 
	
Rights Agent:	
 	

 
	

AMERICAN STOCK TRANSFER & TRUST COMPANY
	

By:	
 	

 
	
 	

 
	

Name:	
 	

Herbert J. Lemmer
	
 	

 
	

Title:	
 	
Vice President
	
 	

 

[SIGNATURE PAGE TO RIGHTS AGREEMENT]

25

   Exhibit A  

FORM  

 of  

 CERTIFICATE OF DESIGNATIONS  

 of  

 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK  

 of  

 DEXCOM, INC.

(Pursuant
to Section 151 of the

Delaware General Corporation Law) 

        DexCom, Inc.,
a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter called the
"Corporation"), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation as required by
Section 151 of the General Corporation Law at a meeting duly called and held on March 11, 2005: 

        RESOLVED,
that pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the "Board of
Directors" or the "Board") in accordance with the provisions of the Certificate of Incorporation of the Corporation, the Board
of Directors hereby creates a series of Preferred Stock, par value $0.001 per share (the "Preferred Stock"), of the Corporation and hereby states the
designation and number of shares, and fixes the relative rights, preferences, and limitations thereof as follows: 

        Series A
Junior Participating Preferred Stock: 

        Section 1.    Designation and Amount.    The shares of such
series shall be designated as "Series A Junior Participating Preferred Stock" (the "Series A Preferred
Stock") and the number of shares constituting the Series A Preferred Stock shall be 500,000. Such number of shares may be increased or decreased by resolution of the
Board of Directors; provided, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of
shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the
Corporation convertible into Series A Preferred Stock. 

        Section 2.    Dividends and Distributions.    

        (A)  Subject
to the rights of the holders of any shares of any series of Preferred Stock (or any other stock) ranking prior and superior to the Series A Preferred
Stock with respect to dividends, the holders of shares of Series A Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally
available for the purpose, quarterly dividends payable in cash on the first day of March, June, September and December in each year (each such date being referred to herein as a
"Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share
of Series A Preferred Stock, in an amount (if any) per share (rounded to the nearest cent), subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate per
share amount of all cash dividends, and 100 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, other than a dividend payable in shares
of Common Stock, par value $0.001 per share (the "Common Stock"), of the Company or a subdivision of the 

1

 

outstanding
shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first
Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock. In the event the Corporation shall at any time declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than
by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series A Preferred
Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying (x) such amount by (y) a fraction, (1) the numerator of which is
the number of shares of Common Stock outstanding immediately after such event and (2) the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to
such event. 

        (B)  The
Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this Section immediately after it
declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock). 

        (C)  Dividends
due pursuant to paragraph (A) of this Section shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the
Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in
which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for
the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A
Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis
among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment of
a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof. 

        Section 3.    Voting Rights.    The holders of shares of
Series A Preferred Stock shall have the following voting rights: 

        (A)  Subject
to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 100 votes on all matters
submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect
a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or
lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such
event shall be adjusted by multiplying (x) such number by (y) a fraction, (1) the numerator of which is the number of shares of Common Stock outstanding immediately after such
event and (2) the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

        (B)  Except
as otherwise provided herein, in any other Certificate of Designations creating a series of Preferred Stock or any similar stock, or by law, the holders of shares
of Series A 

2

 

Preferred
Stock and the holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters submitted to a
vote of stockholders of the Corporation. 

        (C)  Except
as set forth herein, or as otherwise provided by law, holders of Series A Preferred Stock shall have no special voting rights and their consent shall not
be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. 

        Section 4.    Certain Restrictions.    

        (A)  Whenever
quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Corporation
shall not: 

          (i)  declare
or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up)
to the Series A Preferred Stock; 

         (ii)  declare
or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which dividends are payable or in arrears in
proportion to the total amounts to which the holders of all such shares are then entitled; or 

        (iii)  redeem
or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to
the Series A Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the
Corporation ranking junior (as to dividends and upon dissolution, liquidation or winding up) to the Series A Preferred Stock. 

        (B)  The
Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the
Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

        Section 5.    Reacquired Shares.    Any shares of
Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall
upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance
set forth herein, in the Certificate of Incorporation, or in any other Certificate of Designations creating a series of Preferred Stock or any similar stock or as otherwise required by law. 

        Section 6.    Liquidation, Dissolution or Winding Up.    

        (A)  Upon
any liquidation, dissolution or winding up of the Corporation, the holders of shares of Series A Preferred Stock shall be entitled to receive, prior and in
preference to any distribution of any assets of the Corporation to the holders of Common Stock, the amount of $1.00 per share for each share of Series A Preferred Stock then held by them.
Thereafter, the holders of shares of Series A Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to
100 times the aggregate amount to be distributed per share to holders of shares of Common Stock plus an amount equal to any accrued and unpaid dividends. In the event the Corporation shall at any time
declare or pay any dividend 

3

 

on
the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying (x) such amount by (y) a fraction (1) the numerator of
which is the number of shares of Common Stock outstanding immediately after such event and (2) the denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event. 

        (B)  If
the assets of the Corporation legally available for distribution to the holders of shares of Series A Preferred Stock upon liquidation, dissolution or winding
up of the Corporation are insufficient to pay the full preferential amount set forth in the first sentence of paragraph (A) above, then the entire assets of the Corporation legally available
for distribution to the holders of Series A Preferred Stock shall be distributed among such holders in proportion to the shares of Series A Preferred Stock then held by them. 

        (C)  The
foregoing rights upon liquidation, dissolution or winding up provided to the holders of Series A Preferred Stock shall be subject to the rights of the holders
of any other series of Preferred Stock (or any other stock) ranking prior and superior to the Series A Preferred Stock upon liquidation, dissolution or winding up. 

        Section 7.    Consolidation, Merger, etc.    In case the
Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or
other property, then in any such case each share of Series A Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for
adjustment hereinafter set forth, equal to 100 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share
of Common Stock is changed or exchanged. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of
shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred Stock shall be adjusted by
multiplying (x) such amount by (y) a fraction, (1) the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and (2) the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

        Section 8.    No Redemption.    The shares of Series A
Preferred Stock shall not be redeemable. 

4

 

        IN
WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation this            day
of                        , 2005. 

	DEXCOM, INC.	 	 
	

By:	
 	

 
 Andrew P. Rasdal
 President and Chief Executive Officer	
 	

 

[SIGNATURE PAGE TO CERTIFICATE OF DESIGNATIONS]

5

   Exhibit B  

SUMMARY OF STOCK PURCHASE RIGHTS  

        On March 11, 2005, the Board of Directors of DexCom, Inc. (the "Company") declared a dividend of one
stock purchase right (a "Right") for each outstanding share of common stock, par value $0.001 per share (the "Common
Shares"), of the Company. The dividend is payable to stockholders of record on                        ,
 2005 (the "Record Date"). In
addition, one Right will be issued with each share of Company common stock that becomes outstanding (i) between the Record Date and the earliest of the Distribution Date (as defined below), the
date the Rights are redeemed and the date the Rights expire or (ii) following the Distribution Date and prior to the date the Rights are redeemed and the date the Rights expire, pursuant to the
exercise of employee stock options or upon the exercise, conversion or exchange of other securities of the Company, outstanding prior to the Distribution Date. Each Right entitles the registered
holder to purchase from the Company one one-hundredth of a share of the Company's Series A Junior Participating Preferred Stock (the "Preferred
Shares") at a price of $150.00 per one one-hundredth of a Preferred Share (the "Purchase Price"), subject to
adjustment. A complete description of the terms of the Rights is set forth in a Rights Agreement between the Company and American Stock Transfer & Trust Company, as Rights Agent. 

        Until
the earlier to occur of (i) ten days following a public announcement or disclosure that a person or group of affiliated or associated persons (an
"Acquiring Person"), has acquired beneficial ownership of 15% or more of the Company's outstanding common stock or (ii) ten business days (or a
later date determined by the Company's Board of Directors before a person or group becomes an Acquiring Person) following the announcement of an intention to make a tender offer or exchange offer the
consummation of which would result in a person or group becoming an Acquiring Person (the earlier of such dates being called the "Distribution Date"),
the Rights will be represented by common stock certificates with a copy of this Summary of Rights attached. No person or group will become an Acquiring Person if the Company's Board of Directors
determines that such person crossed the ownership threshold inadvertently, and such person or group promptly sells shares of Company common stock until they own less than 15% of the outstanding common
stock. 

        However,
with respect to St. Paul Venture Capital ("St. Paul"), St. Paul shall not be deemed an "Acquiring Person" until such time as St.
Paul and its Affiliates and Associates shall be the Beneficial Owner of more than 25% of the Common Shares then outstanding or until such time as St. Paul or its
Affiliates or Associates shall be required to file a report of beneficial ownership on Schedule 13D reporting holdings in excess of 25% of the Company's Common Shares. With respect to
Canaan Partners ("Canaan"), Canaan shall not be deemed an "Acquiring Person" until such time as Canaan and its Affiliates and Associates shall be the
Beneficial Owner of more than 17% of the Common Shares then outstanding or until such time as Canaan or its Affiliates or Associates shall be required to file a report of beneficial ownership
on Schedule 13D reporting holdings in excess of 17% of the Company's Common Shares. 

        The
Rights Agreement provides that, until the Distribution Date, the Rights will be transferred only with Company common stock. Until the Distribution Date (or earlier redemption or
expiration of the Rights), new common stock certificates issued after the Record Date will contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date (or earlier
redemption or expiration of the Rights), the transfer of any common stock certificates, even without such notation or a copy of this Summary of Rights being attached, will also constitute the transfer
of the Rights associated with the Company common stock represented by such certificate. After the Distribution Date, separate certificates representing the Rights will be mailed to record holders of
Company common stock on the Distribution Date and such separate certificates alone will evidence the Rights. If shares of Company common stock are issued or sold after the Distribution Date (but prior
to the 

1

 

redemption
or expiration of the Rights) in connection with the exercise of stock options or upon the exercise, conversion or exchange of other securities of the Company outstanding prior to the
Distribution Date, the Company shall issue the appropriate number of Rights in connection with such issuance or sale. 

        The
Rights are not exercisable until the Distribution Date. The Rights will expire on                        , 2015, unless the
expiration date is extended or unless the Rights are earlier
redeemed or exchanged by the Company, as described below. Until a Right is exercised, the holder of a Right, as such, will have no rights as a stockholder of the Company. 

        The
purchase price payable, and the number of Preferred Shares or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to
prevent dilution. The number of Rights and the number of one one-hundredths of a Preferred Share issuable upon exercise of each Right are also subject to adjustment upon certain events
occurring before the Distribution Date. 

        The
Preferred Shares have been structured so that each Preferred Share has dividend, liquidation and voting rights equal to those of 100 shares of Company common stock. Because of this,
the value of the one one-hundredth interest in a Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share. The Preferred Shares are not
redeemable. 

        In
the event that any person or group becomes an Acquiring Person, unless the event causing the person to become an Acquiring Person is a merger, acquisition or other business
combination described in the next paragraph, each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which will thereafter be void), will thereafter have the right to
receive upon exercise and payment of the exercise price that number of shares of common stock having a market value of two times the exercise price of the Right. If the Company does not have enough
authorized but unissued shares of common stock to satisfy this obligation to issue common shares, the Company will deliver upon payment of the exercise price of a Right an amount of cash or other
securities equivalent in value to the common stock issuable upon exercise of a Right. 

        In
the event that any person or group becomes an Acquiring Person and the Company merges into or engages in certain other business combinations with an Acquiring Person, or 50% or more
of its consolidated assets or earning power are sold to an Acquiring Person, each holder of a Right, other than Rights owned by an Acquiring Person, will thereafter have the right to receive, upon
exercise and payment of the exercise price, that number of shares of common stock of the acquiring company that at the time of such transaction will have a market value of two times the exercise price
of the Right. 

        At
any time after a person or group becomes an Acquiring Person and prior to such person acquiring a majority of the outstanding Company common stock, the Company Board of Directors may
exchange all or some of the Rights (other than Rights owned by the Acquiring Person), at an exchange ratio of one Common Share, or one one-hundredth of a Preferred Share (or other
equivalent securities), per Right. 

        At
any time before a person or group becomes an Acquiring Person, the Company Board of Directors may redeem all (but not some) of the Rights at a price of $0.0001 per Right and on such
terms and conditions as the Board of Directors may establish. After the period for redemption of the Rights has expired, the Board may not amend the Rights Agreement to extend the period for
redemption of the Rights. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the redemption
price. 

        The
terms of the Rights may be amended by a resolution of the Board of Directors without the consent of the holders of the Rights, except that after a person or group becomes an
Acquiring Person, 

2

 

no
such amendment may adversely affect the interests of the holders of the Rights (other than an Acquiring Person). 

        A
copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A
filed                        ,
2005. A copy of the Rights Agreement is available free of charge from the Company. This summary description of the Rights does
not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is deemed to be incorporated into this summary. 

3

   Exhibit C  

FORM OF RIGHT CERTIFICATE  

	Certificate No. R-            	 	            Rights

NOT
EXERCISABLE AFTER                        , 2015, OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION
AT $0.0001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. 

RIGHT CERTIFICATE

DEXCOM, INC.

        This
certifies that                        or registered assigns, is the registered owner of the number of Rights set forth above, each
of which entitles the owner thereof, subject to the
terms, provisions and conditions of the Rights Agreement, dated as of                        , 2005 (the "Rights Agreement"), between DexCom, Inc., a
Delaware corporation (the "Company"), and American Stock Transfer & Trust Company (the "Rights
Agent"), to
purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 p.m., Pacific Time,
on                        , 2015 at the office
of the Rights Agent, or at the office of its successor as Rights Agent, one one-hundredth of a fully paid non-assessable share of Series A Junior Participating Preferred
Stock, par value $0.001 per share (the "Preferred Shares"), of the Company, at a purchase price of One Hundred Fifty Dollars ($150.00) per one
one-hundredth of a Preferred Share (the "Purchase Price"), upon presentation and surrender of this Right Certificate with the Certification
and the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-hundredths of a Preferred Share that may be
purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as
of                        , based on the Preferred Shares as constituted at such
date. As provided in the Rights Agreement, the Purchase Price and the number of one one-hundredths of a Preferred Share that may be purchased upon the exercise of the Rights evidenced by
this Right Certificate are subject to modification and adjustment upon the happening of certain events. 

        This
Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the above-mentioned offices of the
Rights Agent. 

        This
Right Certificate, with or without other Right Certificates, upon surrender at the principal office of the Rights Agent, may be exchanged for another Right Certificate or Right
Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right
Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right
Certificate or Right Certificates for the number of whole Rights not exercised. 

        Subject
to the provisions of the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $0.0001 per Right or
(ii) may be exchanged in whole or in part for Preferred Shares or shares of the Company's Common Stock, par value $0.001 per share. 

1

 

        No
fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions that are integral multiples of one one-hundredth
of a Preferred Share, which may, at the election of the Company, be evidenced by depository receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 

        No
holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the
Company that may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Rights Agreement. 

        This
Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 

        WITNESS
the facsimile signature of the proper officers of the Company and its corporate seal. 

Dated
as of                        

	ATTEST:	 	 	 	 
	

 	
 	

 	
 	

DEXCOM, INC.
	

By:	
 	

 
	
 	

By:	
 	

 

	

Countersigned:	
 	

 	
 	

 
	

AMERICAN STOCK TRANSFER & TRUST COMPANY
	

By:	
 	

 
 Authorized Signature	
 	

 	
 	

 

2

Form of Reverse Side of Right Certificate

 FORM OF ASSIGNMENT  

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate) 

        FOR
VALUE RECEIVED                        hereby sells, assigns and transfers
unto                        (Please print name and address of transferee) this Right Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint                        , Attorney, to transfer the
within Right Certificate on the books of the within-named Company, with full
power of substitution. 

	Dated:	 	 
	 	 
	

 	
 	

 	
 	

 
 Signature
	

Signature(s) Guaranteed:	
 	

 

        SIGNATURE(S)
SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15 

        The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in
the Rights Agreement). 

	 	 	 	 	 
 Signature

Form of Reverse Side of Right Certificate—continued

 FORM OF ELECTION TO PURCHASE

(To
be executed if holder desires to

exercise the Right Certificate) 

To                        : 

        The
undersigned hereby irrevocably elects to exercise                        Rights represented by this Right Certificate to purchase
the Preferred Shares issuable upon the exercise of such
Rights and requests that certificates for such Preferred Shares be issued in the name of: 

	Please insert social security

or other identifying number	 	

 
	 	 
	

 
 (Please print name and address)	
 	

 
	

 
	
 	

 
	

 
	
 	

 

        If
such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered in the name
of and delivered to: 

	Please insert social security

or other identifying number	 	

 
	 	 
	

 
 (Please print name and address)	
 	

 
	

 
	
 	

 
	

 
	
 	

 
	

Dated:	
 	

 
	
 	

 
	

 	
 	

 	
 	

 	
 	

 
 Signature
	

Signature(s) Guaranteed:	
 	

 

        SIGNATURE(S)
SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15 

Form of Reverse Side of Right Certificate—continued 

        The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as such terms
are defined in the Rights Agreement). 

	 	 	 	 	 
 Signature

NOTICE  

        The signature in the foregoing Forms of Assignment and Election must conform to the name as written upon the face of this Right Certificate in every particular,
without alteration or any change whatsoever. 

        In
the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, the Company and the Rights Agent will
deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such Assignment or
Election to Purchase will not be honored. 

QuickLinks

RIGHTS AGREEMENT BETWEEN DEXCOM, INC. AND AMERICAN STOCK TRANSFER & TRUST COMPANY, AS RIGHTS AGENT DATED AS OF , 2005QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.03    
    

 
 

DEXCOM INC.
  
    2005 EQUITY INCENTIVE PLAN
  Approved by Stockholders on March 21, 2005    
    

        1.     PURPOSE. The purpose of the Plan is to provide incentives to attract, retain and motivate eligible persons whose present
and potential contributions are important to the success of the Company, its Parent or Subsidiaries by offering them an opportunity to participate in the Company's future performance through awards of
Options, Restricted Stock, Stock Bonuses Stock Appreciation Rights ("SARs") and Restricted Stock Units ("RSUs"). Capitalized terms not defined in the text are defined in Section 26. 

        2.     SHARES SUBJECT TO THE PLAN.

        2.1   Number of Shares Available. Subject to Sections 2.2 and 21 below, 3,000,000 Shares are available for grant and issuance
under the Plan. The number of shares authorized for issuance under this Plan and all other share amounts set forth in this Plan reflect the 1-for-2 reverse split of the
Company's Common Stock to be effected on or before the Effective Date. In addition, any shares issued under the Dexcom 1999 Stock Option Plan (the "1999 Plan") on the Effective Date (as defined below)
that are forfeited or that are issuable upon exercise of options granted pursuant to the 1999 Plan that expire without having been exercised in full, will no longer be available for grant and issuance
under the 1999 Plan but will be available for grant and issuance under this Plan. Shares that are subject to: (a) issuance upon exercise of an Option or SAR granted under this Plan but cease to
be subject to the Option or SAR for any reason other than exercise of the Option or SAR; (b) Awards granted under this Plan but are forfeited or are repurchased by the Company at the original
issue price; or (c) Awards granted under this Plan that otherwise terminate without Shares being issued, will return to the pool of Shares available for grant and issuance under this Plan. The
number of Shares available for grant and issuance under the Plan shall be increased on the first day of each January 2006 through 2015, by the lesser of: (i) three percent (3%) of the
number of Shares issued and outstanding on the preceding December 31, and (ii) a lesser number of Shares determined by the Board. In order that ISOs may be granted under this Plan, no
more than 3,000,000 Shares shall be issued as ISOs. The Company may issue Shares that are authorized but unissued or treasury shares pursuant to the Awards granted under this Plan. At all times the
Company will reserve and keep available a sufficient number of Shares to satisfy the requirements of all outstanding Options and SARs granted under the Plan and all other outstanding but unvested
Awards granted under the Plan. 

        2.2   Adjustment of Shares. If the number of outstanding Shares is changed by a stock dividend, recapitalization, stock split,
reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company, without consideration, then (a) the number of Shares reserved for
issuance and future grant under the Plan set forth in Section 2.1, (b) the Exercise Prices of and number of Shares subject to outstanding Options and SARs, (c) the number of
Shares subject to other outstanding Awards, (d) the maximum number of shares that may be issued as ISOs set forth in Section 2.1; (e) the maximum number of shares that may be
issued to an individual in any one calendar year set forth in Section 3; and (f) the number of Shares that are granted as Options to Non-Employee Directors as set forth in
Section 8, will be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and compliance with applicable securities laws; provided that
fractions of a Share will not be issued but will either be replaced by a cash payment equal to the Fair Market Value of such fraction of a Share or will be rounded up (down in the case of ISOs) to the
nearest whole Share, as determined by the Committee; and provided further that the Exercise Price of any Option may not be decreased to below the par value of the Shares. 

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        3.     ELIGIBILITY. ISOs may be granted only to employees (including officers and directors who are also employees) of the
Company or of a corporation that is Parent or Subsidiary. All other Awards may be granted to employees, officers, directors, consultants, independent contractors and advisors of the Company or any
Parent or Subsidiary; provided that such consultants, contractors and advisors render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction. The
Committee (or its designee under Section 4.1(c)) will from time to time determine and designate among the eligible persons who will be granted one or more Awards under the Plan. A person may be
granted more than one Award under the Plan. However, no person will be eligible to receive more than 500,000 Shares issuable under Awards granted in any calendar year, other than new employees of the
Company or of a Parent or Subsidiary (including new employees who are also officers and directors of the Company or any Parent or Subsidiary), who are eligible to receive up to a maximum of 1,000,000
Shares issuable under Awards granted in the calendar year in which they commence their employment. 

        4.     ADMINISTRATION.

        4.1   Committee Authority. The Plan shall be administered by the Committee or by the Board acting as the Committee. Except for
automatic grants to Non-Employee Directors pursuant to Section 8 hereof, and subject to the general purposes, terms and conditions of the Plan, the Committee will have full power to
implement and carry out the Plan. Without limiting the previous sentence, the Committee will have the authority to: 

	(a)
	construe
and interpret the Plan, any Award Agreement and any other agreement or document executed pursuant to the Plan;

	(b)
	prescribe,
amend and rescind rules and regulations relating to the Plan or any Award, including determining the forms and agreements used in connection with the Plan, provided that
the Committee may delegate to the President, the Chief Financial Officer or the officer in charge of human resources, in consultation with the Company's General Counsel, the authority to approve
revisions to the forms and agreements used in connection with the Plan that are designed to facilitate Plan administration, and that are not inconsistent with the Plan or with any resolutions of the
Committee relating to the Plan;

	(c)
	select
persons to receive Awards; provided that the Committee may delegate to one or more Executive Officers (who would also be considered "officers" under Delaware law) the authority
to grant an Award under the Plan to Participants who are not Insiders;

	(d)
	determine
the terms of Awards;

	(e)
	determine
the number of Shares or other consideration subject to Awards;

	(f)
	determine
whether Awards will be granted singly, in combination, or in tandem with, in replacement of, or as alternatives to, other Awards under the Plan or any other incentive or
compensation plan of the Company or any Parent or Subsidiary;

	(g)
	grant
waivers of Plan or Award conditions;

	(h)
	determine
the vesting, exercisability, transferability, and payment of Awards;

	(i)
	correct
any defect, supply any omission, or reconcile any inconsistency in the Plan, any Award or any Award Agreement;

	(j)
	determine
whether an Award has been earned;

	(k)
	amend
the Plan; or

	(l)
	make
all other determinations necessary or advisable for the administration of the Plan. 

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        4.2   Committee Interpretation and Discretion. Except for automatic grants to Non-Employee Directors pursuant to
Section 8 hereof, any determination made by the Committee with respect to any Award shall be made in its sole discretion at the time of grant of the Award or, unless in contravention of any
express term of the Plan or Award, at any later time, and such determination shall be final and binding on the Company and all persons having an interest in any Award under the Plan. Any dispute
regarding the interpretation of the Plan or any Award shall be submitted by the Participant or Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and
binding on the Company and Participant. The Committee may delegate to one or more Executive Officers, the authority to review and resolve disputes with respect to Awards held by Participants who are
not Insiders, and such resolution shall be final and binding on the Company and Participant. 

        5.     OPTIONS. The Committee may grant Options to Participants and will determine (a) whether the Options will be ISOs or
NSOs; (b) the number of Shares subject to the Option, (c) the Exercise Price of the Option, (d) the period during which the Option may be exercised, (e) the exercisibility
of the Option and (f) all other terms and conditions of the Option, subject to the provisions of the Plan. With respect to Options granted to Non-Employee Directors pursuant to
Section 8 in the event of a conflict between the provisions of Section 8 and this Section 5, the provisions of Section 8 shall prevail. 

        5.1   Form of Option Grant. Each Option granted under the Plan will be evidenced by a Stock Option Agreement that will
expressly identify the Option as an ISO or NSO. Except as otherwise required by Section 8 regarding the terms of Options to Non-Employee Directors, the Stock Option Agreement will
be substantially in a form and contain such provisions (which need not be the same for each Participant) that the Committee has from time to time approved, and will comply with and be subject to the
terms and conditions of the Plan. 

        5.2   Date of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant
the Option, unless a later date is otherwise specified by the Committee. The Stock Option Agreement, and a copy of the Plan (plus any additional documents required to be delivered under applicable
laws), will be delivered to the Participant within a reasonable time after the Option is granted. The Stock Option Agreement, Plan, and other documents may be delivered in any manner (including
electronic distribution or posting) that meets applicable legal requirements. 

        5.3   Exercise Period and Expiration Date. An Option will vest and become exercisable within the times or upon the occurrence
of events determined by the Committee and set forth in the Stock Option Agreement governing such Option, subject to the provisions of Section 5.6, and subject to Company policies established by
the Committee from time to time. The Committee may provide for Options to vest and become exercisable at one time or from time to time, periodically or otherwise (including, without limitation, upon
the attainment during a Performance Period of performance goals based on Performance Factors), in such number of Shares or percentage of Shares subject to the Option as the Committee determines. The
Stock Option Agreement shall set forth the Expiration Date; provided that no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and provided
further that no ISO granted to a Ten Percent Stockholder will be exercisable after the expiration of five years from the date the Option is granted. 

        An
Option may only be exercised by the personal representative of a Participant or an Authorized Transferee or by the person or persons to whom a Participant's rights under the Option
shall pass by such person's will or by the laws of descent and distribution of the state of such person's domicile at the time of death, and then only as and to the extent that such person was
entitled to exercise the Option on the date of death. 

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        5.4   Exercise Price. The Exercise Price of an Option will be determined by the Committee when the Option is granted and, in
the case of an ISO will not be less than the Fair Market Value of the Shares on the date of grant provided that the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than
110% of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased must be made in accordance with Section 11 of the Plan and the Stock Option Agreement. 

        5.5   Procedures for Exercise. A Participant or Authorized Transferee may exercise Options by following the procedures
established by the Company's Stock Administration Department, as communicated and made available to Participants. 

        5.6   Termination. Notwithstanding the exercise periods set forth in the Stock Option Agreement, exercise of an Option will
always be subject to the following: 

	(a)
	If
the Participant is Terminated for any reason except Cause, death or Disability, then the Participant may exercise such Participant's Options only to the extent that such Options
would have been exercisable upon the Termination Date and no later than three (3) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as
may be determined by the Committee, with any such exercise beyond three (3) months after the Termination Date deemed to be an NSO), but in any event, no later than the Expiration Date of the
Options.

	(b)
	If
the Participant is Terminated because of Participant's death (or the Participant dies within three (3) months after a Termination other than for Cause), then Participant's
Options may be exercised only to the extent that such Options would have been exercisable by Participant on the Termination Date and must be exercised by Participant (or Participant's legal
representative or authorized assignee) no later than twelve (12) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as may be
determined by the Committee, with any such exercise beyond twelve (12) months after the Termination Date, deemed to be an NSO), but in any event no later than the Expiration Date of the
Options.

	(c)
	If
the Participant is Terminated because of Participant's Disability (or the Committee determines that the Participant experiences a Disability within three (3) months after a
Termination other than because of Participant's Disability or for Cause), then Participant's Options may be exercised only to the extent that such Options would have been exercisable by Participant on
the Termination Date and must be exercised by Participant (or Participant's legal representative or authorized assignee) no later than six (6) months after the Termination Date (or such shorter
or longer time period not exceeding five (5) years as may be determined by the Committee, with any such exercise beyond twelve (12) months after the Termination Date, deemed to be an
NSO), but in any event no later than the Expiration Date of the Options.

	(c)
	Notwithstanding
the provisions in paragraph 5.6(a) above, if a Participant is terminated for Cause, neither the Participant, the Participant's estate nor such other person who
may then hold the Option shall be entitled to exercise any Option with respect to any Shares whatsoever, after termination of service, whether or not after termination of service the Participant may
receive payment from the Company or Subsidiary for vacation pay, for services rendered prior to termination, for services rendered for the day on which termination occurs, for salary in lieu of
notice, or for any other benefits. In making such determination, the Board shall give the Participant an opportunity to present to the Board evidence on his behalf. For the purpose of this paragraph,
termination of service shall be deemed to occur on the date when the Company dispatches notice or advice to the Participant that his service is terminated. 

4

 

        5.7   Limitations on Exercise. The Committee may specify a reasonable minimum number of Shares that may be purchased on any
exercise of an Option; provided that the minimum number will not prevent a Participant from exercising an Option for the full number of Shares for which it is then exercisable. 

        5.8   Limitations on ISOs. The aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which
ISOs are exercisable for the first time by a Participant during any calendar year (under the Plan or under any other incentive stock option plan of the Company or any Parent or Subsidiary) shall not
exceed $100,000. If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first time by a Participant during any calendar year exceeds $100,000, the
Options for the first $100,000 worth of Shares to become exercisable in that calendar year will be ISOs, and the Options for the Shares with a Fair Market Value in excess of $100,000 that become
exercisable in that calendar year will be NSOs. If the Code is amended to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISOs, such different limit shall
be automatically incorporated into the Plan and will apply to any Options granted after the effective date of the Code's amendment. 

        5.9   Notice of Disqualifying Dispositions of Shares Acquired on Exercise of an ISO. If a Participant sells or otherwise
disposes of any Shares acquired pursuant to the exercise of an ISO on or before the later of (a) the date two years after the Date of Grant, and (b) the date one year after the exercise
of the ISO (in either case, a "Disqualifying Disposition"), the Company may require the Participant to immediately notify the Company in writing of such Disqualifying Disposition. 

        5.10 Modification, Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the
grant of new Options in substitution therefor; provided that any such action may not, without the written consent of Participant, impair any of Participant's rights under any Option previously
granted; and provided, further that without stockholder approval, the modified, extended, renewed or new Option may not have a lower Exercise Price than the outstanding Option. Any outstanding ISO
that is modified, extended, renewed or otherwise altered shall be treated in accordance with Section 424(h) of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected, by a written notice to them. 

        5.11 No Disqualification. Notwithstanding any other provision in the Plan, no term of the Plan relating to ISOs will be
interpreted, amended or altered, and no discretion or authority granted under the Plan will be exercised, so as to disqualify the Plan under Section 422 of the Code or, without the consent of
the Participant affected, to disqualify any ISO under Section 422 of the Code. 

5

 

        6.     RESTRICTED STOCK AWARDS.

        6.1   Awards of Restricted Stock. A Restricted Stock Award is an offer by the Company to sell to a Participant Shares that are
subject to restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may purchase, the Purchase Price, the restrictions under which the Shares will be
subject and all other terms and conditions of the Restricted Stock Award, subject to the following: 

        6.2   Restricted Stock Purchase Agreement. All purchases under a Restricted Stock Award will be evidenced by a Restricted Stock
Purchase Agreement, which will be in substantially a form (which need not be the same for each Participant) that the Committee has from time to time approved, and will comply with and be subject to
the terms and conditions of the Plan. A Participant accepts a Restricted Stock Award by signing and delivering to the Company a Restricted Stock Purchase Agreement with full payment of the Purchase
Price, within thirty days from the date the Restricted Stock Purchase Agreement was delivered to the Participant. If the Participant does not accept the Restricted Stock Award within thirty days, then
the offer of the Restricted Stock Award will terminate, unless the Committee determines otherwise. The Restricted Stock Award, Plan and other documents may be delivered in any manner (including
electronic distribution or posting) that meets applicable legal requirements. 

        6.3   Purchase Price. The Purchase Price for a Restricted Stock Award will be determined by the Committee and, may be less than
Fair Market Value (but not less than the par value of the Shares) on the date the Restricted Stock Award is granted. Payment of the Purchase Price must be made in accordance with Section 11 of
the Plan and the Restricted Stock Purchase Agreement, and in accordance with any procedures established by the Company's Stock Administration Department, as communicated and made available to
Participants. 

        6.4   Terms of Restricted Stock Awards. Restricted Stock Awards will be subject to such restrictions as the Committee may
impose. These restrictions may be based on completion of a specified number of years of service with the Company or upon completion of the performance goals based on Performance Factors during any
Performance Period as set out in advance in the Participant's Restricted Stock Purchase Agreement. Prior to the grant of a Restricted Stock Award, the Committee shall: (a) determine the nature,
length and starting date of any Performance Period for the Restricted Stock Award; (b) select from among the Performance Factors to be used to measure performance goals, if any; and
(c) determine the number of Shares that may be awarded to the Participant. Prior to the payment for Shares to be purchased under any Restricted Stock Award, the Committee shall determine the
extent to which such Restricted Stock Award has been earned. Performance Periods may overlap and a Participant may participate simultaneously with respect to Restricted Stock Awards that are subject
to different Performance Periods and having different performance goals and other criteria. 

        6.5   Termination During Performance Period. Except as set forth in the Participant's Restricted Stock Award, any Restricted
Stock Award vesting will cease to vest on the Participant's Termination Date. 

        7.     STOCK BONUS AWARDS.

        7.1   Awards of Stock Bonuses. A Stock Bonus Award is an award to an eligible person of Shares (which may consist of Restricted
Stock or Restricted Stock Units) for services to be rendered or for past services already rendered to the Company or any Parent or Subsidiary. All Stock Bonus Awards shall be made pursuant to a Stock
Bonus Agreement, which shall be in substantially a form (which need not be the same for each Participant) that the Committee has from time to time approved, and will comply with and be subject to the
terms and conditions of the Plan. No payment will be required for Shares awarded pursuant to a Stock Bonus Award. 

6

 

        7.2   Terms of Stock Bonus Awards. The Committee will determine the number of Shares to be awarded to the Participant under a
Stock Bonus Award and any restrictions thereon. These restrictions may be based upon completion of a specified number of years of service with the Company or upon satisfaction of performance goals
based on Performance Factors during any Performance Period as set out in advance in the Participant's Stock Bonus Agreement. If the Stock Bonus Award is to be earned upon the satisfaction of
performance goals, the Committee shall: (a) determine the nature, length and starting date of any Performance Period for the Stock Bonus Award; (b) select from among the Performance
Factors to be used to measure performance goals; and (c) determine the number of Shares that may be awarded to the Participant. Prior to the issuance of any Shares or other payment to a
Participant pursuant to a Stock Bonus Award, the Committee will determine the extent to which the Stock Bonus Award has been earned. Performance Periods may overlap and a Participant may participate
simultaneously with respect to Stock Bonus Awards that are subject to different Performance Periods and different performance goals and other criteria. The number of Shares may be fixed or may vary in
accordance with such performance goals and criteria as may be determined by the Committee. The Committee may adjust the performance goals applicable to a Stock Bonus Award to take into account changes
in law and accounting or tax rules and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to
avoid windfalls or hardships. 

        7.3   Form of Payment to Participant. The Stock Bonus Award will be paid to the Participant currently. Payment may be made in
the form of cash, whole Shares, or a combination thereof, based on the Fair Market Value of the Shares earned under a Stock Bonus Award on the date of payment, either in a lump sum payment or in
installments, all as the Committee determines. 

        7.4   Termination of Participant. In the event of a Participant's Termination during a Performance Period or vesting period,
for any reason, then such Participant will be entitled to payment (whether in Shares, cash or otherwise) with respect to the Stock Bonus Award only to the extent earned as of the date of Termination
in accordance with the Stock Bonus Agreement, unless the Committee determines otherwise. 

        8.     AUTOMATIC GRANTS TO NON-EMPLOYEE DIRECTORS.

        8.1   Eligibility. Non-Employee Directors are eligible for Options granted pursuant to this Section 8. 

        8.2   Initial Grant. Each Non-Employee Director who is a member of the Board on the Effective Date will
automatically be granted an Option to purchase 25,000 Shares on the Effective Date. Each Non-Employee Director who first becomes a member of the Board after the Effective Date will
automatically be granted an Option to purchase 25,000 Shares on the date such Non-Employee Director first becomes a member of the Board. Each Option granted pursuant to this
Section 8.2 shall be called an "Initial Grant". 

        8.3   Succeeding Grant. On each anniversary of the Effective Date, each Non-Employee Director who was a member of
the Board on the Effective Date will automatically be granted an Option to purchase 10,000 Shares. Each Non-Employee Director who first becomes a member of the Board after the Effective
Date will automatically be granted an Option for 10,000 Shares on each anniversary of the date he or she first became a Non-Employee Director. Each Option granted pursuant to this
Section 8.3 shall be called a "Succeeding Grant". 

7

 

        8.4   Chairman of the Board of Directors Grant. The Chairman of the Board as of the Effective Date will automatically be
granted an Option to purchase 12,500 Shares on the Effective Date, and will automatically be granted an Option for 5,000 Shares on each anniversary of the Effective Date, provided that he or she is
the Chairman of the Board on such date. Each succeeding Chairman of the Board who is a Non-Employee Director will automatically be granted an Option to purchase 12,500 Shares on the date
such Non-Employee Director is appointed the Chairman of the Board, and on each anniversary of such Non-Employee Director's appointment as Chairman of the Board he or she will
automatically be granted an Option to purchase 5,000 Shares, provided that he or she is the Chairman of the Board on such date. The Option granted pursuant to this Section 8.4 will be in
addition to the Option granted pursuant to Sections 8.1 and 8.2. Each Option granted pursuant to this Section 8.4 upon the Effective Date or upon the Non-Employee Director becoming
the Chairman of the Board shall be called a "Chairman's Initial Grant" and all other grants pursuant to this Section 8.4 shall be called "Chairman's Succeeding Grants." Chairman's Initial
Grants and Chairman's Succeeding Grants shall collectively be called "Chairman's Grants." 

        8.5   Shares in Lieu Cash. Each Non-Employee may choose to receive fully vested Shares in lieu of all or a portion
of any cash payment payable to such Non-Employee Director for his or her service on the Board. The number of Shares issued in lieu of any cash payment shall be based on the Fair Market
Value of the Shares on the date the cash amount would otherwise become payable to such Non-Employee Director. 

        8.6   Vesting and Exercisability.

        (a)   Initial
Grants shall become exercisable and vest as to 1/3 of the Shares upon the first anniversary of the date such Option is granted and as to an
additional 1/36 on each monthly anniversary thereafter and become fully vested on the third anniversary of the date of grant, so long as the Non-Employee Director
continuously remains a director or a consultant of the Company. 

        (b)   Succeeding
Grants shall become exercisable and vest as to 1/36 of the Shares on each monthly anniversary of the date such Option is granted and become
fully vested on the third anniversary of the date of grant, so long as the Non-Employee Director continuously remains a director or a consultant of the Company. 

        (c)   Each
Chairman's Initial Grant shall become exercisable and vest as to 1/3 of the Shares upon the first anniversary of the date such Option is granted and
an additional 1/36 of the shares on each monthly anniversary thereafter and become fully vested on the third anniversary of the date of grant, so long as the Non-Employee
Director continuously remains Chairman of the Board. Each Chairman's Succeeding Grant shall become exercisable as they vest as to 1/36 of the Shares upon each monthly anniversary of the
date of grant and become fully vested on the third anniversary of the date of grant, so long as the Non-Employee Director continuously remains Chairman of the Board. 

        (d)   In
the event of a Corporate Transaction, the vesting of all Options granted to Non-Employee Directors pursuant to this Section 8 will accelerate and
such Options will become exercisable in full prior to the consummation of such event at such time and on such conditions as the Committee determines, and if such Options are not exercised on or prior
to the consummation of the Corporate Transaction, they shall terminate. 

        8.7   Form of Option Grant. Each Option granted under this Section 8 shall be a NSO and shall be evidenced by a
Non-Employee Director Stock Option Grant Agreement in such form as the Committee shall from time to time approve and which shall comply with and be subject to the terms and conditions of
this Plan. 

        8.8   Exercise Price. The Exercise Price per Share of each Option granted under this Section 8 shall be the Fair Market
Value of the Share on the date the Option is granted. 

8

 

        8.9   Termination of Option. Except as provided in Section 8.6(d) or this Section 8.9, each Option granted under
this Section 8 shall expire ten (10) years after its date of grant. The date on which the Non-Employee Director ceases to be a member of the Board or a consultant of the
Company shall be referred to as the "Non-Employee Director Termination Date" for purposes of this Section 8.9. An Option may be exercised after the Non-Employee Director
Termination Date only as set forth below: 

        (a)   Termination Generally. If the Non-Employee Director ceases to be a member of the Board or consultant of the
Company for any reason except death or Disability, then each Option, to the extent then vested pursuant to Section 8.6 above, then held by such Non-Employee Director may be
exercised by the Non-Employee Director within six (6) months after the Non-Employee Director Termination Date, but in no event later than the Expiration Date. 

        (b)   Death. If the Non-Employee Director ceases to be a member of the Board or consultant of the Company because
of his or her death, then each Option, to the extent then vested pursuant to Section 8.6 above, then held by such Non-Employee Director may be exercised by the
Non-Employee Director or his or her legal representative within twelve (12) months after the Non-Employee Director Termination Date, but in no event later than the
Expiration Date. 

        (c)   Disability. If the Non-Employee Director ceases to be a member of the Board or consultant of the Company
because of his or her Disability, then each Option, to the extent then vested pursuant to Section 8.6 above, then held by such Non-Employee Director may be exercised by his or her
legal representative within six (6) months after the Non-Employee Director Termination Date, but in no event later than the Expiration Date. 

        9.     STOCK APPRECIATION RIGHTS. 

        9.1   Awards of SARs. A Stock Appreciation Right ("SAR") is an award to an eligible person that may be settled in cash, or
Shares (which may consist of Restricted Stock), having a value equal to the value determined by multiplying the difference between the Fair Market Value on the date of exercise over the Exercise Price
and the number of Shares with respect to which the SAR is being settled. The SAR may be granted for services to be rendered or for past services already rendered to the Company, or any Parent or
Subsidiary. All SARs shall be made pursuant to a SAR Agreement, which shall be in substantially a form (which need not be the same for each Participant) that the Committee has from time to time
approved, and will comply with and be subject to the terms and conditions of this Plan.

        9.2   Terms of SARs. The Committee will determine the terms of a SAR including, without limitation: (a) the number of
Shares deemed subject to the SAR; (b) the Exercise Price and the time or times during which the SAR may be settled; (c) the consideration to be distributed on settlement of the SAR; and
(d) the effect on each SAR of the Participant's Termination. The Exercise Price of the SAR will be determined by the Committee when the SAR is granted and, may be less than Fair Market Value
(but not less than the par value of the Shares. A SAR may be awarded upon satisfaction of such performance goals based on Performance Factors during any Performance Period as are set out in advance in
the Participant's individual SAR Agreement. If the SAR is being earned upon the satisfaction of performance goals, then the Committee will: (x) determine the nature, length and starting date of
any Performance Period for each SAR; and (y) select from among the Performance Factors to be used to measure the performance, if any. Prior to settlement of any SAR earned upon the satisfaction
of performance goals pursuant to a SAR Agreement, the Committee shall determine the extent to which such SAR has been earned. Performance Periods may overlap and Participants may participate
simultaneously with respect to SARs that are subject to different performance goals and other criteria. 

9

 

        9.3   Exercise Period and Expiration Date. A SAR will be exercisable within the times or upon the occurrence of events
determined by the Committee and set forth in the SAR Agreement governing such SAR. The SAR Agreement shall set forth the Expiration Date; provided that no SAR will be exercisable after the expiration
of seven years from the date the SAR is granted. The Committee may also provide for SARs to become exercisable at one time or from time to time, periodically or otherwise (including, without
limitation, upon the attainment during a Performance Period of performance goals based on Performance Factors), in such number of Shares or percentage of the Shares subject to the SAR as the Committee
determines. 

        9.4   Form and Timing of Settlement. The portion of a SAR being settled may be paid currently or on a deferred basis with such
interest or dividend equivalent, if any, as the Committee determines, provided that the terms of the SAR and any deferral satisfy the requirements of Section 409A of the Code and any
regulations or rulings promulgated by the Internal Revenue Service. Payment may be made in the form of cash or whole Shares or a combination thereof, either in a lump sum payment or in installments,
as the Committee determines. 

        10.   RESTRICTED STOCK UNITS.

        10.1 Awards of Restricted Stock Units. A Restricted Stock Unit ("RSU") is an award to an eligible person covering a number of
Shares that may be settled in cash, or by issuance of those Shares (which may consist of Restricted Stock) for services to be rendered or for past services already rendered to the Company or any
Parent or Subsidiary. All RSUs shall be made pursuant to a RSU Agreement, which shall be in substantially a form (which need not be the same for each Participant) that the Committee or an officer of
the Company (pursuant to Section 4.1(b)) has from time to time approved, and will comply with and be subject to the terms and conditions of the Plan. 

        10.2 Terms of RSUs. The Committee will determine the terms of a RSU including, without limitation: (a) the number of
Shares deemed subject to the RSU; (b) the time or times during which the RSU may be exercised; (c) the consideration to be distributed on settlement, and the effect on each RSU of the
Participant's Termination. A RSU may be awarded upon satisfaction of such performance goals based on Performance Factors during any Performance Period as are set out in advance in the Participant's
individual RSU Agreement. If the RSU is being earned upon satisfaction of performance goals, then the Committee will: (x) determine the nature, length and starting date of any Performance
Period for the RSU; (y) select from among the Performance Factors to be used to measure the performance, if any; and (z) determine the number of Shares deemed subject to the RSU. Prior
to settlement of any RSU earned upon the satisfaction of performance goals pursuant to a RSU Agreement, the Committee shall determine the extent to which such SAR has been earned. Performance Periods
may overlap and participants may participate simultaneously with respect to RSUs that are subject to different Performance Periods and different performance goals and other criteria. The number of
Shares may be fixed or may vary in accordance with such performance goals and criteria as may be determined by the Committee. The Committee may adjust the performance goals applicable to the RSUs to
take into account changes in law and accounting and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or
circumstances to avoid windfalls or hardships. 

        10.3 Form and Timing of Settlement. The portion of a RSU being settled shall be paid currently. To the extent permissible
under law, the Committee may also permit a Participant to defer payment under a RSU to a date or dates after the RSU is earned provided that the terms of the RSU and any deferral satisfy the
requirements of Section 409A of the Code and any regulations or rulings promulgated by the Internal Revenue Service. Payment may be made in the form of cash or whole Shares or a combination
thereof, either in a lump sum payment or in installments, all as the Committee determines. 

10

 

        11.   PAYMENT FOR SHARE PURCHASES.

        11.1 Payment. Payment for Shares purchased pursuant to the Plan may be made by any of the following methods (or any
combination of such methods) that are described in the applicable Award Agreement and that are permitted by law: 

	(a)
	in
cash (by check);

	(b)
	in
the case of exercise by the Participant, Participant's guardian or legal representative or the authorized legal representative of Participants' heirs or legatees after
Participant's death, by cancellation of indebtedness of the Company to the Participant;

	(c)
	by
surrender of shares of the Company's Common Stock that either: (1) were obtained by the Participant or Authorized Transferee in the public market; or (2) if the
shares were not obtained in the public market, they have been owned by the Participant or Authorized Transferee for more than six months and have been paid for within the meaning of SEC
Rule 144 (and, if the shares were purchased from the Company by use of a promissory note, the note has been fully paid with respect to the shares);

	(d)
	in
the case of exercise by the Participant, Participant's guardian or legal representative or the authorized legal representative of Participants' heirs or legatees after
Participant's death, by waiver of compensation due or accrued to Participant for services rendered;

	(e)
	by
tender of property; or

	(f)
	with
respect only to purchases upon exercise of an Option, and provided that a public market for the Company's stock exists:

	(1)
	through
a "same day sale" commitment from the Participant or Authorized Transferee and an NASD Dealer meeting the requirements of the Company's "same day sale" procedures and in
accordance with law; or

	(2)
	through
a "margin" commitment from Participant or Authorized Transferee and an NASD Dealer meeting the requirements of the Company's "margin" procedures and in accordance with law. 

        11.2 Issuance of Shares. Upon payment of the applicable Purchase Price or Exercise Price (or a commitment for payment from
the NASD Dealer designated by the Participant or Authorized Transferee in the case of an exercise by means of a "same-day sale" or "margin" commitment), and compliance with other
conditions and procedures established by the Company for the purchase of shares, the Company shall issue the Shares registered in the name of Participant or Authorized Transferee (or in the name of
the NASD Dealer designated by the Participant or Authorized Transferee in the case of an exercise by means of a "same-day sale" or "margin" commitment) and shall deliver certificates
representing the Shares (in physical or electronic form, as appropriate). The Shares may be subject to legends or other restrictions as described in Section 15 of the Plan. 

        12.   WITHHOLDING TAXES.

        12.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards granted under the Plan, the Company
may require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate(s) for the Shares. If
a payment in satisfaction of an Award is to be made in cash, the payment will be net of an amount sufficient to satisfy federal, state, and local withholding tax requirements. 

11

 

        12.2 Stock Withholding. When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise
or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required to be withheld, the Committee may, in its sole discretion, allow the
Participant to satisfy the minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that number of whole Shares having a Fair Market Value equal to the
minimum amount required to be withheld, determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose shall
be made in accordance with the requirements established by the Committee and be in writing in a form acceptable to the Committee. 

        13.   PRIVILEGES OF STOCK OWNERSHIP. No Participant or Authorized Transferee will have any rights as a stockholder of the
Company with respect to any Shares until the Shares are issued to the Participant or Authorized Transferee. After Shares are issued to the Participant or Authorized Transferee, the Participant or
Authorized Transferee will be a stockholder and have all the rights of a stockholder with respect to the Shares including the right to vote and receive all dividends or other distributions made or
paid with respect to such Shares; provided, that if the Shares are Restricted Stock, any new, additional or different securities the Participant or Authorized Transferee may become entitled to receive
with respect to the Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided further, that the Participant or Authorized Transferee will have no right to retain such dividends or distributions with respect to Shares that are repurchased at the
Participant's original Exercise Price or Purchase Price pursuant to Section 15. 

        14.   TRANSFERABILITY. No Award and no interest therein, shall be sold, pledged, assigned, hypothecated, transferred or
disposed of in any manner other than by will or by the laws of descent and distribution, and no Award may be made subject to execution, attachment or similar process; provided, however that with the
consent of the Committee a Participant may transfer a NSO to an Authorized Transferee. Transfers by the Participant for consideration are prohibited. Without such consent by the Committee, a NSO
shall, like all other Awards under the Plan, be exercisable (a) during a Participant's lifetime only by the Participant or the Participant's guardian or legal representative; and
(b) after Participant's death, by the legal representative of the Participant's heirs or legatees. 

        15.   RESTRICTIONS ON SHARES. At the discretion of the Committee, the Company may reserve to itself and/or its assignee(s) in
the Award Agreement a right to repurchase all or a portion of a Participant's Shares that are not "Vested" (as defined in the Award Agreement), following the Participant's Termination, at any time
within ninety days after the later of (a) the Participant's Termination Date or (b) the date the Participant purchases Shares under the Plan, for cash or cancellation of purchase money
indebtedness with respect to Shares, at the Participant's original Exercise Price or Purchase Price; provided that upon assignment of the right to repurchase, the assignee must pay the Company, upon
assignment of the right to repurchase, cash equal to the excess of the Fair Market Value of the Shares over the original Purchase Price. 

        16.   CERTIFICATES. All certificates for Shares or other securities delivered under the Plan (whether in physical or electronic
form, as appropriate) will be subject to stock transfer orders, legends and other restrictions that the Committee deems necessary or advisable, including without limitation restrictions under any
applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system on which the Shares may be listed. 

12

   
        17.   ESCROW. To enforce any restrictions on a Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other transfer instruments approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the
Company, to hold in escrow until such restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. 

        18.   SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award shall not be effective unless the Award is in compliance with
all applicable state, federal and foreign securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system on which the Shares
may then be listed, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in the Plan, the Company shall have
no obligation to issue or deliver certificates for Shares under the Plan prior to (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable,
and/or (b) completion of any registration or other qualification of such shares under any state, federal or foreign law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company shall be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any state,
federal or foreign securities laws, stock exchange or automated quotation system, and the Company shall have no liability for any inability or failure to do so. 

        19.   NO OBLIGATION TO EMPLOY. Nothing in the Plan or any Award granted under the Plan shall confer or be deemed to confer on
any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent or Subsidiary or limit in any way the right of the Company or any Parent
or Subsidiary to terminate Participant's employment or other relationship at any time, with or without cause. 

        20.   REPRICING, EXCHANGE, BUYOUT OF AWARDS. The repricing of Options or SARs is permitted without prior stockholder approval,
provided that the terms of the repricing satisfy the requirements of Section 409A of the Code and any regulations or rulings promulgated by the Internal Revenue Service. The Committee may, at
any time or from time to time authorize the Company, in the case of an Option or SAR exchange without stockholder approval, and with the consent of the respective Participants, to issue new Awards in
exchange for the surrender and cancellation of any or all outstanding Awards. The Committee may at any time buy from a Participant an Option previously granted with payment in cash, Shares or other
consideration, based on such terms and conditions as the Committee and the Participant shall agree. 

        21.   CORPORATE TRANSACTIONS.

        21.1 Assumption or Replacement of Awards by Successor. In the event of a Corporate Transaction any or all outstanding Awards
may be assumed or replaced by the successor corporation, which assumption or replacement shall be binding on all Participants. In the alternative, the successor corporation may substitute equivalent
Awards or provide substantially similar consideration to Participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor corporation may
also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the
Participant. In the event such successor corporation, if any, refuses to assume or replace the Awards, as provided above, pursuant to a Corporate Transaction or if there is no successor corporation
due to a dissolution or liquidation of the Company, such Awards shall immediately vest as to 100% of the Shares subject thereto at such time and on such conditions as the Board shall determine and the
Awards shall expire at the closing of the transaction or at the time of dissolution or liquidation. 

13

 

        21.2 Other Treatment of Awards. Subject to any greater rights granted to Participants under Section 21.1, in the event
of a Corporate Transaction, any outstanding Awards shall be treated as provided in the applicable agreement or plan of merger, consolidation, dissolution, liquidation or sale of assets. 

        21.3 Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding awards
granted by another company, whether in connection with an acquisition of such other company or otherwise, by either (a) granting an Award under the Plan in substitution of such other company's
award, or (b) assuming such award as if it had been granted under the Plan if the terms of such assumed award could be applied to an Award granted under the Plan. Such substitution or
assumption shall be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under the Plan if the other company had applied the rules of the Plan
to such grant. In the event the Company assumes an award granted by another company, the terms and conditions of such award shall remain unchanged (except that the exercise price and the number and
nature of Shares issuable upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option rather
than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. 

        22.   ADOPTION AND STOCKHOLDER APPROVAL. The Plan was adopted by the Board on February 9, 2005. The Plan shall become
effective upon the Effective Date. The stockholders of the Company must approve the Plan in a manner consistent with applicable law within twelve (12) months of its approval by the Board. 

        23.   TERM OF PLAN. The Plan will terminate ten years following the Effective Date. 

        24.   AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate or amend the Plan in any respect, including without
limitation grants to Non-Employee Directors pursuant to Section 8 of the Plan and amendment of any form of Award Agreement or instrument to be executed pursuant to the Plan.
Notwithstanding the foregoing, neither the Board nor the Committee shall, without the approval of the stockholders of the Company, amend the Plan in any manner that requires such stockholder approval
pursuant to the Code or the regulations promulgated thereunder as such provisions apply to ISO plans, or pursuant to the Exchange Act or any rule promulgated thereunder. In addition, no amendment that
is detrimental to a Participant may be made to any outstanding Award without the consent of the Participant. 

        25.   NONEXCLUSIVITY OF THE PLAN; UNFUNDED PLAN. Neither the adoption of the Plan by the Board, the submission of the Plan to
the stockholders of the Company for approval, nor any provision of the Plan shall be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements
as it may deem desirable, including, without limitation, the granting of stock options and bonuses otherwise than under the Plan, and such arrangements may be either generally applicable or applicable
only in specific cases. The Plan shall be unfunded. Neither the Company nor the Board shall be required to segregate any assets that may at any time be represented by Awards made pursuant to the Plan.
Neither the Company, the Committee, nor the Board shall be deemed to be a trustee of any amounts to be paid under the Plan. 

14

 

        26.   DEFINITIONS. As used in the Plan, the following terms shall have the following meanings: 

        (a)   "Authorized Transferee" means the permissible recipient, as authorized by this Plan and the Committee, of an NSO that is
transferred during the Participant's lifetime by the Participant by gift or domestic relations order. For purposes of this definition a "permissible recipient" is: (i) a child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law of the Participant, including any such
person with such relationship to the Participant by adoption; (ii) any person (other than a tenant or employee) sharing the Participant's household; (iii) a trust in which the persons in
(i) or (ii) have more than fifty percent of the beneficial interest; (iv) a foundation in which the persons in (i) or (ii) or the Participant control the management
of assets; or (v) any other entity in which the person in (i) or (ii) or the Participant own more than fifty percent of the voting interest. 

        (b)   "Award" means any award under the Plan, including any Option, Restricted Stock, Stock Bonus, Stock Appreciation Right or
Restricted Stock Unit. 

        (c)   "Award Agreement" means, with respect to each Award, the signed written agreement between the Company and the Participant
setting forth the terms and conditions of the Award. 

        (d)   "Board" means the Board of Directors of the Company. 

        (e)   "Cause" means termination of the Participant's employment on the basis of the Participant's conviction (or a plea of  nolo contendere) of fraud, misappropriation,
embezzlement or any other act or acts of dishonesty constituting a felony and resulting or intended to
result directly or indirectly in a substantial gain or personal enrichment to the Participant at the expense of the Company or any Subsidiary. 

        (f)    "Code" means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 

        (g)   "Committee" means the Compensation Committee of the Board or such other committee appointed by the Board to administer
the Plan, or if no committee is appointed, the Board. Each member of the Committee shall be (i) a "non-employee director" for purposes of Section 16 and
Rule 16b-3 of the Exchange Act, and (ii) an "outside director" for purposes of Section 162(m) of the Code, unless the Board has fewer than two such outside directors. 

        (h)   "Company" means DexCom Inc., a corporation organized under the laws of the State of Delaware, or any successor
corporation. 

        (i)    "Corporate Transaction" means (a) a merger or consolidation in which the Company is not the surviving corporation
(other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the
stockholders of the Company and the Awards granted under the Plan are assumed or replaced by the successor corporation, which assumption shall be binding on all Participants), (b) a dissolution
or liquidation of the Company, (c) the sale of substantially all of the assets of the Company, (d) a merger in which the Company is the surviving corporation but after which the
stockholders of the Company immediately prior to such merger (other than any stockholder that merges, or which owns or controls another corporation that merges, with the Company in such merger) cease
to own their shares or other equity interest in the Company; or (e) any other transaction which qualifies as a "corporate transaction" under Section 424(a) of the Code wherein the
stockholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of the Company). 

15

 

        (j)    "Disability" means a disability within the meaning of Section 22(e)(3) of the Code, as determined by the
Committee. 

        (k)   "Effective Date" means the date on which the Registration Statement covering the initial public offering of shares of the
Company's common stock is declared effective by the SEC. 

        (l)    "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder. 

        (m)  "Executive Officer" means a person who is an "executive officer" of the Company as defined in
Rule 3b-7 promulgated under the Exchange Act. 

        (n)   "Exercise Price" means the price at which a Participant who holds an Option or SAR may purchase the Shares issuable upon
exercise of the Option or SAR. 

        (o)   "Expiration Date" means the last date on which an Option or SAR may be exercised as determined by the Committee. 

        (p)   "Fair Market Value" means, as of any date, the value of a share of the Company's Common Stock determined as follows: 

	(1)
	if
such Common Stock is then quoted on the NASDAQ National Market, its closing price on the NASDAQ National Market on such date;

	(2)
	if
such Common Stock is publicly traded and is then listed on a national securities exchange, the last reported sale price on such date or, if no such reported sale takes place on
such date, the average of the closing bid and asked prices on the principal national securities exchange on which the Common Stock is listed or admitted to trading;

	(3)
	if
such Common Stock is publicly traded but is not quoted on the NASDAQ National Market nor listed or admitted to trading on a national securities exchange, the average of the closing
bid and asked prices on such date, as reported by The Wall Street Journal, for the over-the-counter market; or

	(4)
	if
none of the foregoing is applicable, by the Board of Directors in good faith. 

        (q)   "Insider" means an officer or director of the Company or any other person whose transactions in the Company's Common
Stock are subject to Section 16 of the Exchange Act. 

        (r)   "ISO" means an Incentive Stock Option within the meaning of Section 422 of the Code. 

        (s)   "NASD Dealer" means broker-dealer that is a member of the National Association of Securities Dealers, Inc. 

        (t)    "NSO" means a nonqualified stock option that does not qualify as an ISO. 

        (u)   "Option" means an Award pursuant to Section 5 or Section 8 of the Plan. 

        (v)   "Non-Employee Director" means a member of the Company's Board of Directors who is not a current employee of
the Company or any Parent or Subsidiary. 

        (w)  "Parent" means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if
at the time of the granting of an Award under the Plan, each of such corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in
one of the other corporations in such chain or such lesser percentage as determined by the Committee. 

        (x)   "Participant" means a person who receives an Award under the Plan. 

16

 

        (y)   "Performance Factors" means the factors selected by the Committee from among the following measures (whether or not in
comparison to other peer companies) to determine whether the performance goals established by the Committee and applicable to Awards have been satisfied: 

	(1)
	Net
revenue and/or net revenue growth;

	(2)
	Earnings
per share and/or earnings per share growth;

	(3)
	Earnings
before income taxes and amortization and/or earnings before income taxes and amortization growth;

	(4)
	Operating
income and/or operating income growth;

	(5)
	Net
income and/or net income growth;

	(6)
	Total
stockholder return and/or total stockholder return growth;

	(7)
	Return
on equity;

	(8)
	Operating
cash flow return on income;

	(9)
	Adjusted
operating cash flow return on income;

	(10)
	Economic
value added;

	(11)
	Individual
business objectives; and

	(12)
	Company
specific operational metrics. 

        (z)   "Performance Period" means the period of service determined by the Committee, not to exceed five years, during which
years of service or performance is to be measured for the Award. 

        (aa)   "Plan" means this DexCom Inc. 2005 Equity Incentive Plan, as amended from time to time. 

        (bb)   "Purchase Price" means the price to be paid for Shares acquired under the Plan, other than Shares acquired
upon exercise of an Option. 

        (cc)   "Restricted Stock Award" means an award of Shares pursuant to Section 6 of the Plan. 

        (dd)   "Restricted Stock Purchase Agreement" means an agreement evidencing a Restricted Stock Award granted
pursuant to Section 6 of the Plan. 

        (ee)   "Restricted Stock Unit" means an Award granted pursuant to Section 10 of the Plan. 

        (ff)    "RSU Agreement" means an agreement evidencing a Restricted Stock Unit Award granted pursuant to
Section 10 of the Plan. 

        (gg)   "SAR Agreement" means an agreement evidencing a Stock Appreciation Right granted pursuant to
Section 9 of the Plan. 

        (hh)   "SEC" means the Securities and Exchange Commission. 

        (ii)     "Securities Act" means the Securities Act of 1933, as amended, and the regulations promulgated thereunder. 

        (jj)     "Shares" means shares of the Company's Common Stock $0.001 par value, reserved for issuance under the
Plan, as adjusted pursuant to Sections 2 and 21, and any successor security. 

        (kk)   "Stock Appreciation Right" means an Award granted pursuant to Section 9 of the Plan. 

        (ll)     "Stock Bonus" means an Award granted pursuant to Section 7 of the Plan. 

        (mm)   "Stock Bonus Agreement" means an agreement evidencing a Stock Bonus Award granted pursuant to
Section 7 of the Plan. 

17

 

        (nn)   "Stock Option Agreement" means the agreement which evidences a Stock Option, granted pursuant to
Section 5 of the Plan. 

        (oo)   "Subsidiary" means any entity directly or indirectly controlled by the Company, as determined by the
Committee. 

        (pp)   "Ten Percent Stockholder" means any person who directly or by attribution owns more than ten percent of
the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary. 

        (qq)   "Termination" or "Terminated" means, for purposes of the
Plan with respect to a Participant, that the Participant has ceased to provide services as an employee, director, consultant, independent contractor or adviser, to the Company or a Parent or
Subsidiary; provided that a Participant shall not be deemed to be Terminated if the Participant is on a leave of absence approved by the Committee or by an officer of the Company designated by the
Committee; and provided further, that during any approved leave of absence, vesting of Awards shall be suspended or continue in accordance with guidelines established from time to time by the
Committee. Subject to the foregoing, the Committee shall have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased
to provide services (the "Termination Date"). 

18

 
 

FORM OF DEXCOM, INC. 2005 EQUITY
  INCENTIVE PLAN/STOCK OPTION AGREEMENT    
    

 
No. ______________  

 
 

DEXCOM, INC.
  2005 EQUITY INCENTIVE PLAN
  STOCK OPTION AGREEMENT    
    

        This Stock Option Agreement (the "Agreement") is made and entered into as of the date of grant set forth below
(the "Date of Grant") by and between Dexcom, Inc., a Delaware corporation (the "Company"), and
the participant named below (the "Participant"). Capitalized terms not defined herein shall have the meaning ascribed to them in the Company's 2005
Equity Incentive Plan (the "Plan"). 

	

Participant:	

	

 
	

Social Security Number:	

	

 
	

Address:	

	

 
	

Total Option Shares:	

	

 
	

Exercise Price Per Share:	

	

 
	

Date of Grant:	

	

 
	

First Vesting Date:	

	

 
	

Expiration Date:	

 (unless earlier terminated under Section 5.6 of the Plan)	

 
	

Classification of Optionee	
o Exempt Employee

o Nonexempt Employee	

 
	

Type of Stock Option

(Check one):	
o Incentive Stock Option

o Nonqualified Stock Option	

 

	1.
	GRANT OF OPTION.  The Company hereby grants to Participant an option (this
"Option") to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the
"Shares") at the Exercise Price Per Share set forth above (the "Exercise Price"), subject to all of the
terms and conditions of this Agreement and the Plan. If designated as an Incentive Stock Option above, the Option is intended to qualify as an "incentive stock option" (the
"ISO") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code").

	2.
	EXERCISE PERIOD.

	2.1
	Exercise Period of Option.  Provided Participant continues to provide
services to the Company or any Subsidiary or Parent of the Company, the Option will become vested and exercisable as to portions of the Shares as follows: [Vesting Schedule] If
application of the vesting percentage causes a fractional share, such share shall be rounded down to the nearest whole share for each month except for the last month in such vesting period, at the end
of which last month this Option shall become exercisable for the full remainder of the Shares.

	2.2
	Vesting of Shares.  Shares that are vested pursuant to the schedule set
forth in Section 2.1 are "Vested Shares." Shares that are not vested pursuant to the schedule set forth in Section 2.1 are
"Unvested Shares."

	2.3
	Expiration.  The Option shall expire on the Expiration Date set forth above
or earlier as provided in Section 3 below or pursuant to Section 5.6 of the Plan. 

1

 

	3.
	TERMINATION.

	3.1
	Termination for Any Reason Except Death, Disability or Cause.  If
Participant is Terminated for any reason, except death, Disability or for Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by Participant on the
Termination Date, may be exercised by Participant no later than three (3) months after the Termination Date, but in any event no later than the Expiration Date. Any exercise of an ISO beyond
(i) three (3) months after the Termination Date when Termination is for any reason other than Participant's death or "permanent and total disability" (within the meaning of
Section 22(e)(3) of the Code) is deemed to be the exercise of an NQSO.

	3.2
	Termination Because of Death.  If Participant is Terminated because of
death (or Participant dies within three (3) months of Termination when Termination is for any reason other than Cause), the Option, to the extent that it is exercisable by Participant on the
Termination Date, may be exercised by Participant (or Participant's legal representative) no later than twelve (12) months after the Termination Date, but in any event no later than the
Expiration Date.

	3.3
	Termination Because of Disability.  If Participant is Terminated because of
the Disability of Participant (or the Committee determines that Participant experiences a Disability within three (3) months of Termination when Termination is for any reason other than for
Cause), the Option, to the extent that it is exercisable by Participant on the Termination Date, may be exercised by Participant (or Participant's legal representative) no later than six
(6) months after the Termination Date, but in any event no later than the Expiration Date.

	3.4
	Termination for Cause.  If the Participant is terminated for Cause, the
Option shall immediately cease to be exercisable as to Vested Shares upon the Termination Date and the Option shall expire on the Termination Date.

	3.5
	No Obligation to Employ.  Nothing in the Plan or this Agreement shall
confer on Participant any right to continue in the employ of, or other relationship with, the Company or any Parent or Subsidiary of the Company, or limit in any way the right of the Company or any
Parent or Subsidiary of the Company to terminate Participant's employment or other relationship at any time, with or without Cause.

 

	4.
	MANNER OF EXERCISE.

 
	4.1
	Stock Option Exercise Agreement.  To exercise this Option, Participant (or in the case of exercise
after Participant's death or incapacity, Participant's executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Committee from time to time (the "Exercise
Agreement"), which shall set forth, inter alia, (i) Participant's election to exercise the Option, (ii) the number
of Shares being purchased, (iii) any restrictions imposed on the Shares and (iv) any representations, warranties and agreements regarding Participant's investment intent and access to
information as may be required by the Company to comply with applicable securities laws. If someone other than Participant exercises the Option, then such person must submit documentation reasonably
acceptable to the Company verifying that such person has the legal right to exercise the Option and such person shall be subject to all of the restrictions contained herein as if such person were the
Participant.

	4.2
	Limitations on Exercise.  The Option may not be exercised unless such
exercise is in compliance with all applicable federal and state securities laws, as they are in effect on the date of exercise. The Option may not be exercised as to fewer than one hundred
(100) Shares unless it is exercised as to all Shares as to which the Option is then exercisable. 

2

 

	4.3
	Payment.  The Exercise Agreement shall be accompanied by full payment of
the Exercise Price for the shares being purchased in cash (including by check) or where permitted by law:

	(a)
	by
cancellation of indebtedness of the Company to the Participant;

	(b)
	by
surrender of shares of the Company's Common Stock that (i) either (A) have been owned by Participant for more than six (6) months and have been paid for within
the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares); or (B) were
obtained by Participant in the open public market; and (ii) are clear of all liens, claims, encumbrances or security interests;

	(c)
	by
waiver of compensation due or accrued to Participant for services rendered;

	(d)
	provided
that a public market for the Company's stock exists: (i) through a "same day sale" commitment from Participant and a broker-dealer that is a member of the National
Association of Securities Dealers (an "NASD Dealer") whereby Participant irrevocably elects to exercise the Option and to sell a portion of the Shares
so purchased sufficient to pay for the total Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company, or
(ii) through a "margin" commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in
a margin account as security for a loan from the NASD Dealer in the amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total
Exercise Price directly to the Company; or

	(e)
	by
any combination of the foregoing.

 

	4.4
	Tax Withholding.  Prior to the issuance of the Shares upon exercise of the
Option, Participant must pay or provide for any applicable federal, state and local withholding obligations of the Company. If the Committee permits, Participant may provide for payment of withholding
taxes upon exercise of the Option by requesting that the Company retain the minimum number of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; but in no
event will the Company withhold Shares if such withholding would result in adverse accounting consequences to the Company. In such case, the Company shall issue the net number of Shares to the
Participant by deducting the Shares retained from the Shares issuable upon exercise.

	4.5
	Issuance of Shares.  Provided that the Exercise Agreement and payment are
in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant's authorized assignee, or Participant's legal
representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto.

 

	5.
	NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES.  If the Option is an ISO,
and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Date of Grant, and
(ii) the date one (1) year after transfer of such Shares to Participant upon exercise of the Option, Participant shall immediately notify the Company in writing of such disqualifying
disposition. Participant understands and agrees that a disqualifying disposition may require the Company to withhold applicable taxes on the compensation income recognized by Participant from the
disqualifying disposition by payment from the wages or other compensation then payable to Participant (Participant may be permitted to make a cash payment to the Company in lieu of such withholding). 

3

 
	6.
	COMPLIANCE WITH LAWS AND REGULATIONS.  The exercise of the Option and the
issuance and transfer of Shares shall be subject to compliance by the Company and Participant with all applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company's Common Stock may be listed at the time of such issuance or transfer. Participant understands that the Company is under no obligation to register or qualify
the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance.

	7.
	NONTRANSFERABILITY OF OPTION.  The Option may not be transferred in any
manner other than by will or by the laws of descent and distribution, and, with respect to NQSOs, by instrument to an inter vivos or testamentary trust in which the Option is to be passed to
beneficiaries upon the death of the trustor (settlor), and may be exercised during the lifetime of Participant only by Participant or in the event of Participant's incapacity, by Participant's legal
representative. The terms of the Option shall be binding upon the executors, administrators, successors and assigns of Participant.

	8.
	TAX CONSEQUENCES.  Set forth below is a brief summary as of the Effective
Date of the Plan of some of the federal and California tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND
REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD CONSULT THE PROSPECTUS AND PARTICIPANT'S PERSONAL TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

	8.1
	Exercise of ISO.  If the Option qualifies as an ISO, there will be no
regular federal or California income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price
will be treated as a tax preference item for federal alternative minimum tax purposes and may subject the Participant to the alternative minimum tax in the year of exercise.

	8.2
	Exercise of Nonqualified Stock Option.  If the Option does not qualify as
an ISO, there may be a regular federal and California income tax liability upon the exercise of the Option. Participant will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company,
the Company may be required to withhold from Participant's compensation or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation
income at the time of exercise.

	8.3
	Disposition of Shares.  The following tax consequences may apply upon
disposition of the Shares.

	(a)
	Incentive Stock Options. If the Shares are held for more than twelve (12) months after the date of the transfer of the Shares
pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated as long term capital gain
for federal and California income tax purposes. If Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain realized on such
disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price.

	(b)
	Nonqualified Stock Options. If the Shares are held for more than twelve (12) months after the date of the transfer of the Shares
pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long-term capital gain. 

4

 

	(c)
	Withholding. The Company may be required to withhold from the Participant's compensation or collect from the Participant and pay to the
applicable taxing authorities an amount equal to a percentage of this compensation income.

 

	9.
	PRIVILEGES OF STOCK OWNERSHIP.  Participant shall not have any of the rights
of a stockholder with respect to any Shares until the Shares are issued to Participant.

	10.
	INTERPRETATION.  Any dispute regarding the interpretation of this Agreement
shall be submitted by Participant or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and Participant.

	11.
	ENTIRE AGREEMENT.  The Plan is incorporated herein by reference. This
Agreement and the Plan constitute the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements,
whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.

	12.
	NOTICES.  Any and all notices required or permitted to be given to a party
pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following:
(i) at the time of personal delivery, if delivery is in person; (ii) one (1) business day after deposit with an express overnight courier for United States deliveries, or two
(2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; or (iii) three (3) business days after deposit
in the United States mail by certified mail (return receipt requested) for United States deliveries. All notices for delivery outside the United States will be sent by express courier. All notices not
delivered personally will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address set forth below the signature lines of this Agreement, or
at such other address as such other party may designate by one of the indicated means of notice herein to the other parties hereto. Notices to the Company will be marked "Attention: Stock Plan
Administration".

	13.
	SUCCESSORS AND ASSIGNS.  The Company may assign any of its rights under
this Agreement. No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent
of the Company. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Participant and Participant's heirs, executors, administrators, legal representatives, successors and assigns.

	14.
	GOVERNING LAW.  This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws.

	15.
	ACCEPTANCE.  Participant hereby acknowledges receipt of a copy of the Plan
and this Agreement. Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan and this Agreement. Participant
acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax adviser prior to such exercise or
disposition.

	16.
	FURTHER ASSURANCES.  The parties agree to execute such further documents
and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement.

	17.
	TITLES AND HEADINGS.  The titles, captions and headings of this Agreement
are included for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless 

5

 

otherwise
specifically stated, all references herein to "sections" and "exhibits" will mean "sections" and "exhibits" to this Agreement. 

	18.
	COUNTERPARTS.  This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement.

	19.
	SEVERABILITY.  If any provision of this Agreement is determined by any
court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties
hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or
unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial
benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to
substitute such provision(s) through good faith negotiations. 

        IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in triplicate by
its duly authorized representative and Participant has executed this Agreement in triplicate, effective as of the Date of Grant. 

	
DEXCOM, INC.	
 	

PARTICIPANT
	

By:	

	
 	

 Signature
	

 (Please print name)	
 	

 (Please print name)
	

 (Please print title	
 	

 	

 
	

Address:	

	
 	

Address:	

	

	
 	

	

	
 	

	

Fax No.:	

	
 	

Fax No.:	

	

Phone No.:	

	
 	

Phone No.:	

Attachment:

Exhibit A—Form
of Stock Option Exercise Agreement 

6

 
 
 

EXHIBIT A
  
    FORM OF STOCK OPTION EXERCISE AGREEMENT    
    

7

No. __________  

 
 

DEXCOM, INC.
  
    2005 EQUITY INCENTIVE PLAN
  
    STOCK OPTION EXERCISE AGREEMENT    
    

        This Stock Option Exercise Agreement (the "Exercise Agreement") is made and entered into as
of                        ,
            (the "Effective Date") by and between Dexcom, Inc., a Delaware corporation (the
"Company"), and the purchaser named below (the "Purchaser"). Capitalized terms not defined herein shall
have the meanings ascribed to them in the Company's 2005 Equity Incentive Plan (the "Plan"). 

	

Purchaser:	

	

 	

	

Social Security Number:	

	

Address:	

	

 	

	

Total Number of Shares:	

	

Exercise Price Per Share:	

	

Type of Stock Option	

 
	

(Check one):	

o Incentive Stock Option

o Nonqualified Stock Option

         1.     EXERCISE OF OPTION.  

         1.1   Exercise.  Pursuant to exercise of that certain option (the
"Option") granted to Purchaser under the Plan and subject to the terms and conditions of this Exercise Agreement, Purchaser hereby purchases from the
Company, and the Company hereby sells to Purchaser, the Total Number of Shares set forth above (the "Shares") of the Company's Common Stock, at the
Exercise Price Per Share set forth above (the "Exercise Price"). As used in this Exercise Agreement, the term
"Shares" refers to the Shares purchased under this Exercise Agreement and includes all securities received (i) in replacement of the Shares,
(ii) as a result of stock dividends or stock splits with respect to the Shares, and (iii) all securities received in replacement of the Shares in a merger, recapitalization,
reorganization or similar corporate transaction. 

        1.2   Title to Shares.  The exact spelling of the name(s) under
which Purchaser will take title to the Shares is: 

	

 	

	

 	

        Purchaser desires to take title to the Shares as follows: 

	o
	Individual,
as separate property

	o
	Husband
and wife, as community property

	o
	Joint
Tenants

	o
	Other;
please specify: _________________________________ 

 

        1.3   Payment.  Purchaser hereby delivers payment of the Exercise
Price in the manner permitted in the Stock Option Agreement as follows (check and complete as appropriate): 

	o
	in
cash (by check) in the amount of $                        , receipt of which is acknowledged by the Company;

	o
	by
delivery of                        fully-paid, nonassessable and vested shares of the Common Stock of the Company owned by
Purchaser for at least six (6) months prior to the date hereof which have been paid for within the meaning of SEC Rule 144, (if purchased by use of a promissory note, such note has been
fully paid with respect to such vested shares), or obtained by Purchaser in the open public market, and owned free and clear of all liens, claims, encumbrances or security interests, valued at the
current Fair Market Value of $                        per share;

	o
	through
a "same day sale" commitment from the Purchaser or Authorized Transferee and an NASD Dealer meeting the requirements of the
Company's "same day sale" procedures and in accordance with law; or

	o
	through
a "margin" commitment from Purchaser or Authorized Transferee and an NASD Dealer meeting the requirements of the Company's "margin"
procedures and in accordance with law. 

        2.     DELIVERY.  

         2.1   Deliveries by Purchaser.  Purchaser hereby delivers to the Company
(i) this
Exercise Agreement and (ii) the Exercise Price and payment or other provision for any applicable tax obligations in the form of a check, a copy of which is attached hereto as  Exhibit 1.

        2.2   Deliveries by the Company.  Upon its receipt of the Exercise
Price, payment or other provision for any applicable tax obligations and all the documents to be executed and delivered by Purchaser to the Company under Section 2.1, the Company will issue a
duly executed stock certificate evidencing the Shares in the name of Purchaser. 

        3.     REPRESENTATIONS AND WARRANTIES OF PURCHASER.  Purchaser
represents and warrants to the Company that: 

        3.1   Agrees to Terms of the Plan.  Purchaser has received a copy
of the Plan and the Stock Option Agreement, has read and understands the terms of the Plan, the Stock Option Agreement and this Exercise Agreement, and agrees to be bound by their terms and
conditions. Purchaser acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares, and that Purchaser should consult a tax adviser prior to such
exercise or disposition. 

        3.2   Access to Information.  Purchaser has had access to all
information regarding the Company and its present and prospective business, assets, liabilities and financial condition that Purchaser reasonably considers important in making the decision to purchase
the Shares, and Purchaser has had ample opportunity to ask questions of the Company's representatives concerning such matters and this investment. 

        3.3   Understanding of Risks.  Purchaser has received and reviewed
the Form S-8 prospectus for the Plan and Shares and is fully aware of: (i) the highly speculative nature of the investment in the Shares; (ii) the financial hazards
involved; (iii) the qualifications and backgrounds of the management of the Company; and (iv) the tax consequences of investment in the Shares. Purchaser is capable of evaluating the
merits and risks of this investment, has the ability to protect Purchaser's own interests in this transaction and is financially capable of bearing a total loss of this investment. 

2

 

        4.     COMPLIANCE WITH SECURITIES LAWS.  Purchaser understands and
acknowledges that the exercise of any rights to purchase any Shares is expressly conditioned upon compliance with the Securities Act and all applicable state securities laws. Purchaser agrees to
cooperate with the Company to ensure compliance with such laws. 

        5.     RESTRICTED SECURITIES.  

         5.1   No Transfer Unless Registered or Exempt.  Purchaser understands
that Purchaser may
not transfer any Shares except when such Shares are registered under the Securities Act or qualified under applicable state securities laws or unless, in the opinion of counsel to the Company,
exemptions from such registration and qualification requirements are available. Purchaser understands that only the Company may file a registration statement with the SEC and that the Company
is under no obligation to do so with respect to the Shares, and may withdraw any such registration statement at any time after filing. Purchaser has also been advised that exemptions from registration
and qualification may not be available or may not permit Purchaser to transfer all or any of the Shares in the amounts or at the times proposed by Purchaser. 

        5.2   SEC Rule 144.  If Purchaser is an "affiliate" for
purposes of Rule 144 promulgated under the Securities Act, then in addition, Purchaser has been advised that Rule 144 requires that the Shares be held for a minimum of one
(1) year, and in certain cases two (2) years, after they have been purchased and paid for (within the meaning of Rule 144).
Purchaser understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Purchaser remains an "affiliate" of the Company or if "current public information" about the
Company (as defined in Rule 144) is not publicly available. 

        6.     RIGHTS AS A STOCKHOLDER.  Subject to the terms and conditions
of this Exercise Agreement, Purchaser will have all of the rights of a stockholder of the Company with respect to the Shares from and after the date that Shares are issued to Purchaser until such time
as Purchaser disposes of the Shares. 

        7.     RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.  

         7.1   Legends.  Purchaser understands and agrees that the Company will
place any legends
that may be required by state or U.S. Federal securities laws, the Company's Certificate of Incorporation or Bylaws, any other agreement between Purchaser and the Company or, subject to the assent of
the Company, any agreement between Purchaser and any third party. 

        7.2   Stop-Transfer Instructions.  Purchaser agrees
that, to ensure compliance with any restrictions imposed by this Exercise Agreement, the Company may issue appropriate "stop-transfer" instructions to its transfer agent, if any, and if
the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 

        7.3   Refusal to Transfer.  The Company will not be required
(i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Agreement or (ii) to treat as owner of such
Shares, or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares have been so transferred. 

3

 

        8.     TAX CONSEQUENCES.  PURCHASER UNDERSTANDS AND REPRESENTS:
(i) THAT PURCHASER HAS REVIEWED THE PROSPECTUS PREPARED FOR THE PLAN AND CONSULTED PURCHASER'S PERSONAL TAX ADVISER IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND
(ii) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. SET FORTH BELOW IS A BRIEF SUMMARY AS OF THE DATE THE PLAN WAS ADOPTED BY THE BOARD OF SOME OF THE U.S. FEDERAL AND
CALIFORNIA TAX CONSEQUENCES OF EXERCISE OF THE OPTION AND DISPOSITION OF THE SHARES. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PURCHASER SHOULD
CONSULT THE PROSPECTUS AND PURCHASER'S PERSONAL TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 

        8.1   Exercise of Incentive Stock Option.  If the Option qualifies
as an ISO, there will be no regular U.S. Federal income tax liability or California income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the
Shares on the date of exercise over the Exercise Price will be treated as a tax preference item for U.S. Federal alternative minimum tax purposes and may subject Purchaser to the alternative minimum
tax in the year of exercise. 

        8.2   Exercise of Nonqualified Stock Option.  If the Option does
not qualify as an ISO, there may be a regular U.S. Federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Purchaser is or was
an employee of the Company, the Company may be required to withhold from Purchaser's compensation or collect from Purchaser and pay to the applicable taxing authorities an amount equal to a percentage
of this compensation income at the time of exercise. 

        8.3   Disposition of Shares.  The following tax consequences may
apply upon disposition of the Shares. 

        (a)   Incentive Stock Options. If the Shares are held for more than twelve (12) months after the date of the transfer of
the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated as long term
capital gain for federal and California income tax purposes. If Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain realized
on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of exercise over
the Exercise Price. 

        (b)   Nonqualified Stock Options. If the Shares are held for more than twelve (12) months after the date of the transfer
of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long-term capital gain. 

        (c)   Withholding. The Company may be required to withhold from the Purchaser's compensation or collect from the Purchaser and
pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. 

        9.     COMPLIANCE WITH LAWS AND REGULATIONS.  The issuance and
transfer of the Shares will be subject to and conditioned upon compliance by the Company and Purchaser with all applicable state and federal laws and regulations and with all applicable requirements
of any stock exchange or automated quotation system on which the Company's Common Stock may be listed or quoted at the time of such issuance or transfer. 

4

 

        10.   SUCCESSORS AND ASSIGNS.  The Company may assign any of its
rights under this Exercise Agreement. No other party to this Exercise Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Exercise Agreement,
except with the prior written consent of the Company. This Exercise Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions
on transfer herein set forth, this Exercise Agreement will be binding upon Purchaser and Purchaser's heirs, executors, administrators, legal representatives, successors and assigns. 

        11.   GOVERNING LAW.  This Exercise Agreement shall be governed by
and construed in accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws. 

        12.   NOTICES.  Any and all notices required or permitted to be
given to a party pursuant to the provisions of this Exercise Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Exercise Agreement on the
earliest of the following: (i) at the time of personal delivery, if delivery is in person; (ii) one (1) business day after deposit with an express overnight courier for United
States deliveries, or two (2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; or (iii) three
(3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries. All notices for delivery outside the United States will be
sent by express courier. All notices not delivered personally will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address set forth below
the signature lines of this Exercise Agreement, or at such other address as such other party may designate by one of the indicated means of notice herein to the other parties hereto. Notices to the
Company will be marked "Attention: Stock Plan Administration". 

        13.   FURTHER ASSURANCES.  The parties agree to execute such
further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Exercise Agreement. 

        14.   TITLES AND HEADINGS.  The titles, captions and headings of
this Exercise Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Exercise Agreement. Unless otherwise specifically stated, all references
herein to "sections" and "exhibits" will mean "sections" and "exhibits" to this Exercise Agreement. 

        15.   ENTIRE AGREEMENT.  The Plan, the Stock Option Agreement and
this Exercise Agreement, together with all Exhibits thereto, constitute the entire agreement and understanding of the parties with respect to the subject matter of this Exercise Agreement, and
supersede all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof. 

        16.   COUNTERPARTS.  This Exercise Agreement may be executed in any
number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. 

5

 

        17.   SEVERABILITY.  If any provision of this Exercise Agreement is
determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent
of the parties hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Exercise Agreement and the remainder of this Exercise Agreement shall be enforced
as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Exercise Agreement. Notwithstanding the forgoing, if the value of this
Exercise Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator of competent jurisdiction
shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 

[THIS AREA INTENTIONALLY LEFT BLANK, SIGNATURE PAGE FOLLOWS] 

6

 

        IN WITNESS WHEREOF, the Company has caused this Exercise Agreement to be executed in triplicate by its duly authorized representative and
Purchaser has executed this Exercise Agreement in triplicate as of the Effective Date, indicated above. 

	
DEXCOM, INC.	
 	

PURCHASER
	

By:	

	
 	

 Signature
	

 (Please print name)	
 	

 (Please print name)
	

 (Please print title)	
 	

 	

 
	

Address:	
 	

Address:
	

	
 	

	

	
 	

	

Fax No.:	

	

 	

Fax No.:	

	

Phone No.:	

	
 	

Phone No.:	

Signature page to Dexcom, Inc. Stock Option Exercise Agreement No. _____  

EXHIBIT  

Exhibit 1: Copy of Purchaser's Check 

7

 
 

EXHIBIT 1
  
    COPY OF PURCHASER'S CHECK    
    

QuickLinks

Exhibit 10.03

DEXCOM INC. 2005 EQUITY INCENTIVE PLAN Approved by Stockholders on March 21, 2005

FORM OF DEXCOM, INC. 2005 EQUITY INCENTIVE PLAN/STOCK OPTION AGREEMENT

DEXCOM, INC. 2005 EQUITY INCENTIVE PLAN STOCK OPTION AGREEMENT

EXHIBIT A FORM OF STOCK OPTION EXERCISE AGREEMENT

DEXCOM, INC. 2005 EQUITY INCENTIVE PLAN STOCK OPTION EXERCISE AGREEMENT

EXHIBIT 1 COPY OF PURCHASER'S CHECK

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