Document:

STOCK PURCHASE AGREEMENT DATED 3/16/05

 Exhibit 10.29 
  
 STOCK PURCHASE AGREEMENT 
  
 THIS AGREEMENT, dated as of March 16, 2005, is between PFIZER INC., a Delaware corporation having a place of business at 235 East 42nd Street, New York,
New York 10017-5755 (the “Purchaser”), and COLEY PHARMACEUTICAL GROUP, INC. (the “Company”), a Delaware corporation having a place of business at 93 Worcester Street, Wellesley, Massachusetts 02481. 
  
 WITNESSETH: 
  
 WHEREAS, concurrently with the execution and delivery of this Agreement, the Purchaser and the Company are entering into a
License Agreement (the “License Agreement”) and a Screening and Evaluation Agreement (the “S & E Agreement”); 
  
 WHEREAS, the Company has agreed to sell and Purchaser has agreed to purchase up to $10,000,000 of the Company’s common stock upon the Company’s
initial public offering in accordance with the terms and conditions of this Agreement; and 
  
 WHEREAS the License Agreement contemplates that the parties hereto shall enter into this Stock Purchase Agreement; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in the License Agreement and this Stock Purchase Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound hereby, agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 Section 1.1 Definitions. Capitalized terms used herein, unless otherwise defined herein, shall have the meanings given to them in the License
Agreement. 
  
 Section 1.2 As used in this Agreement: 

 
 (a) “Acquisition Proposal” shall mean any
tender offer or exchange offer, whether or not accepted by the Board of Directors of the Company, to the stockholders of the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

 
Company (including any publicly announced proposal thereof at a price per share in excess of the most recent closing trading price of Common Stock on the
applicable national securities exchange or NASDAQ on the trading day immediately preceding such public announcement to the stockholders of the Company), or an offer accepted by the Board of Directors of the Company, with respect to a Business
Combination or involving the purchase or other acquisition of [*******************] or more of the outstanding voting securities of the Company, or newly issued securities, which after the issuance thereof, represent beneficial ownership of
[*******************] or more of the outstanding voting securities of the Company. 
  
 (b) “Affiliate” means any entity directly or indirectly controlled by, controlling, or under common control with, a party to
this Agreement, but only for so long as such control shall continue. For purposes of this Agreement, “control” (including, with correlative meanings, “controlled by”, “controlling” and “under common control
with”) of an entity means possession, direct or indirect, of (i) the power to direct or cause direction of the management and policies of such entity (whether through ownership of securities or partnership or other ownership interests, by
contract or otherwise), or (ii) at least fifty percent (50%) of the voting securities (whether directly or pursuant to any option, warrant or other similar arrangement) or other comparable equity interests of such entity. 
  
 (c) “beneficial ownership” (including
“beneficial owner” and other correlative terms) shall mean beneficial ownership as defined in Rule 13d-3 under the United States Securities and Exchange Act of 1934, as amended (the “Exchange Act”); it being understood and agreed
that, for purposes of determining whether a “Change of Control” has occurred, “beneficial ownership” shall also include any securities which any person or any of such person’s Affiliates has the right to acquire (whether
such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise. 
  
 (d) “Business Combination” shall mean (i) merger,
consolidation, reorganization, acquisition, liquidation, scheme or other similar arrangement with a Third Party in which the Company is a constituent corporation or party and pursuant to which [***] or more of the voting securities of the Company
are or may be issued, acquired or exchanged for cash, 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 2 

 
securities or other property, or (ii) a sale of a material portion of the assets of the Company representing not less than [*******************] of the fair
market value of the Company. 
  
 (e) “Change
of Control” means an event where: 
  
 (i)
any person or group becomes the beneficial owner, directly or indirectly, of at least [*******************] or more of the outstanding Voting Stock or voting power over Voting Stock of (x) the Company or (y) any one or more persons or entities which
are a direct or indirect parent holding company of the Company or Affiliates controlling the Company (the Company, together with the persons and entities described in this clause (y), each, individually, a “COLEY GROUP COMPANY” and,
collectively, the “COLEY GROUP COMPANIES”); or 
  
 (ii) occupation of a majority of the seats (other than vacant seats) on the board of directors or other governing body of any COLEY GROUP COMPANY (the “Board”) by any person or group who were neither
(x) members of the Board on the date hereof or members nominated by the Board or (y) appointed by members of the Board on the date hereof or members so nominated; or 
  
 (iii) any COLEY GROUP COMPANY enters into an agreement with any person or entity providing for a merger,
consolidation, reorganization or other similar transaction (or series of transactions) of any COLEY GROUP COMPANY with another person or other entity (other than with any of the COLEY GROUP COMPANY’s wholly-owned subsidiaries) as a result of
which, immediately following such transaction (or series of transactions) less than a majority of the outstanding Voting Stock or voting power over Voting Stock, as calculated on a fully-diluted basis, of the surviving or newly-created entity in
such transaction (or series of related transactions) is beneficially owned by the shareholders of the applicable COLEY GROUP COMPANY immediately prior to such transaction (or series of transactions); or 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 3 

 (iv) any COLEY GROUP COMPANY sells or otherwise transfers to any person(s) or entity that
is not a wholly-owned subsidiary of a COLEY GROUP COMPANY, in one or more related transactions not involving a merger, consolidation, reorganization or other similar transaction (or series of transactions) included in clause (iii) above, properties
or assets representing more than [*******************] of (x) all COLEY GROUP COMPANIES’ consolidated total assets (exclusive of goodwill) as reflected on the consolidated balance sheet for the most recently-completed fiscal year (or, if
applicable, the most recent Annual Report on Form 10-K), or (y) all COLEY GROUP COMPANIES’ consolidated operating income for the most recent fiscal year as reflected on the consolidated income statement for the most recently-completed fiscal
year (or, if applicable, the Annual Report on Form 10-K), or (z) all COLEY GROUP COMPANIES’ consolidated revenue for the most recent fiscal year as reflected on the consolidated income statement for the most recently-completed fiscal year (or,
if applicable, the Annual Report on Form 10-K). 
  
 For purposes of this
definition of “Change of Control”, references to any COLEY GROUP COMPANY shall be deemed to include all successors in any merger, consolidation, reorganization or similar transaction (or series of transactions) preceding any transaction
(or series of transactions) described above. 
  
 (f) “group” shall have the meaning with which such term is used in Section 13(d)(3) of the Exchange Act; 
  
 (g) “Indebtedness” shall mean all obligations, contingent and otherwise, which should, in accordance with generally accepted
accounting principles, be classified upon the obligor’s balance sheet (or notes thereto) as liabilities, but in any event including liabilities secured by any mortgage on property owned or acquired subject to such mortgage, whether or not the
liability secured thereby shall have been assumed, and also including (i) all guaranties, endorsements and other contingent obligations, in respect of Indebtedness (as defined herein) of others, whether or not the same are or should be so reflected
in said balance sheet (or the notes 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 4 

 
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business and
(ii) the present value of any lease payments due under leases required to be capitalized in accordance with applicable Statements of Financial Accounting Standards, determined by discounting all such payments at the interest rate determined in
accordance with applicable Statements of Financial Accounting Standards. 
  
 (h) “Initial Public Offering” shall mean the initial firm commitment underwritten public offering by the Company of its common stock, $.01 par value (the “Common Stock”), resulting in gross
proceeds to the Company of not less than twenty-five million dollars ($25,000,000) pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), and following which, the Company’s
Common Stock shall be listed on a national securities exchange (as defined in the Exchange Act) or the NASDAQ National Market. 
  
 (i) “Key Employee” means and includes (x) the President, chief executive officer, chief financial officer, chief technology
officer, vice president of operations, research, development, sales or marketing, or (y) any other individual who performs a significant role in the operations of the Company or a subsidiary as may be reasonably designated by the Board of Directors
of the Company. 
  
 (j) “Lien” shall
mean any mortgage, pledge, assessment, security interest, encumbrance, lien, levy, claim or charge of any kind, including, without limitation, any conditional sale or other title retention agreement, any lease in the nature thereof and the filing of
or agreement to give any financing statement under the Uniform Commercial Code of any jurisdiction and including any lien or charge arising by statute or other law, except such encumbrances for taxes not yet due and payable or such encumbrances
which arise in the ordinary course of business and which are not material and which do not materially impair the Company’s ownership or use of its property or assets. 
  
 (k) “person” shall have the meaning with which such term is used in Section 13(d)(3) under the
Exchange Act and under Section 2(2) of the Securities Act. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 5 

 (l) “Proxy Solicitation” means any solicitation of proxies or stockholder
consents (as such terms are defined under Regulation 14A and Regulation 14C of the Exchange Act) to vote or seek to advise or influence in any manner whatsoever any Third Party with respect to the Common Stock of the Company. 
  
 (m) “Standstill Period”
[****************************************** ********************************************************************************************]. 
  
 (n) “subsidiary” shall mean any company, partnership, trust, corporation or other non-corporate business enterprise (x) which is
controlled, directly or indirectly, by the first-mentioned company, partnership, trust, corporation or other non-corporate business enterprise; (y) more than 50% of the issued share capital of which is beneficially owned, directly or indirectly, by
the first-mentioned company, partnership, trust, corporation or other non-corporate business enterprise; or (z) which is a subsidiary of another subsidiary of the company, partnership, trust, corporation or other non-corporate business enterprise;
and, for these purposes, a company, partnership, trust, corporation or other non-corporate business enterprise shall be treated as being controlled by another if that other company, partnership, trust, corporation or other non-corporate business
enterprise is able to direct its affairs and/or to control the composition of its board of directors or equivalent body. 
  
 (o) “Third Party” shall mean a person or entity other than (i) the Purchaser, (ii) the Company or (iii) an Affiliate of either
the Purchaser or the Company. 
  
 (p)
“Voting Stock” means securities of any class or series of a corporation or other person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote generally in matters put before the shareholders or members of
such corporation or other person. 
  
 ARTICLE II

  
 Purchase of Common Stock 
  
 Section 2.1 Agreement to Sell and Purchase Common Stock. Subject to
the terms and conditions set forth herein, upon the closing of the Company’s Initial Public Offering, the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 6 

 
Purchaser shall purchase, and the Company shall sell and issue to the Purchaser, shares of Common Stock (each, a “Share” and, collectively, the
“Shares) having an aggregate purchase price equal to ten million dollars ($10,000,000) at a purchase price equal to the initial offering price to the public in the Initial Public Offering (as contained in the final prospectus for such Initial
Public Offering filed with the Securities and Exchange Commission); provided that (a) the Purchaser will have no right or obligation to purchase any Shares at the time of the Initial Public Offering if, and to the extent that, the purchase of Shares
would result in the Purchaser’s beneficial ownership of a number of shares of Common Stock which represent a percentage of the outstanding shares of Common Stock immediately following such purchase equal to or in excess of the lower, as
applicable, of (X) 10% and (Y)[************** **********************************************************************************************************
******************************************************************************************************* *********************************************************************************] (such lower percentage, as applicable contained in subclause
(X) and subclause (Y), the “Capped Percentage”), and (b) in the event the purchase under this Section 2.1 would result in ownership of a percentage of the outstanding shares of Common Stock immediately following such purchase equal to or
in excess of the Capped Percentage but for this clause (b), the Purchaser shall only be obligated and entitled to purchase the maximum number of Shares that will result in the Purchaser beneficially owning less than an aggregate of a percentage of
the outstanding shares of Common Stock immediately following such purchase equal to the Capped Percentage, and the above aggregate purchase price shall be adjusted downward accordingly, and (c) for the avoidance of doubt, the Purchaser shall only be
obligated and entitled to purchase Shares under this Section 2.1 once. 
  
 Section 2.2 Termination of Purchase Obligation. Notwithstanding anything to the contrary contained herein, the Purchaser’s obligations under Section 2.1 hereof prior to an Initial Public Offering shall terminate immediately
following the earliest to occur of (i) a Change of Control, or (ii) the termination of the License Agreement, in accordance with the provisions thereof, or (iii) the occurrence of a Material Default (as defined in the License Agreement) as a result
of any breach of Section 10 of the License Agreement by the Company or any of its Affiliates. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 

  
 ARTICLE III

  
 Delivery of the Shares at the Closing

  
 Section 3.1 The completion of the purchase and sale of
the Shares of Common Stock pursuant to Section 2.1 of this Agreement (the “Closing”) shall occur on the business day of the closing of the Company’s Initial Public Offering, immediately following the closing of such Initial Public
Offering (provided the Company shall have provided Purchaser at least 3 business days advance notice of such closing). At the Closing, the Company shall deliver to Purchaser one or more stock certificates, in accordance with the Purchaser’s
reasonable request. Each such certificate shall be registered in the name of the Purchaser or one of its Affiliates, as the Purchaser shall instruct. 
  
 Section 3.2 The Company’s obligation to issue and deliver the Shares shall be subject to the following conditions, any of which may be waived by the
Company: 
  
 (a) receipt by the Company of a
certified or official bank check or checks or wire transfer of funds in the full amount of the purchase price for the Shares; 
  
 (b) the accuracy in all respects of the representations and warranties made by the Purchaser herein as though such representations and
warranties had been made on and as of Closing; 
  
 (c) no judgment, decree, injunction, order or ruling of any federal, state, local or foreign court or governmental or regulatory body or authority that is binding on any person or its property under applicable law (each a “Court
Order”) shall have been issued or entered into that would be violated by consummation of any of the transactions contemplated hereby and no lawsuit, action, arbitration, administrative or other proceeding, criminal prosecution or governmental
investigation or inquiry shall have been instituted or threatened which questions the validity or legality of the transactions contemplated hereby; and 
  
 (d) all authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of the United States of America or
of any state that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall be duly obtained and effective as of the Closing. The Company shall have obtained all necessary 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 8 

 
blue sky permits and qualifications, or have the availability of exemptions therefrom, required by any state for the offer and sale of the Shares.

  
 Section 3.3 The Purchaser’s obligation to purchase the
Shares shall be subject to the fulfillment of the following conditions, any of which may be waived by the Purchaser: 
  
 (a) the Purchaser’s receipt of one or more stock certificates representing the Shares; 
  
 (b) the Purchaser’s receipt of a certificate issued by
the Secretary of State of the State of Delaware with respect to the Company as of a recent date before the Closing showing the Company to be validly existing and in good standing in Delaware; 
  
 (c) the accuracy in all respects of the representations and
warranties made by the Company herein as of the Closing as though such representations and warranties had been made on and as of Closing, provided, however, that for this purpose, the representations and warranties of the Company included herein
shall be deemed to be updated and modified by the information included in the final prospectus relating to the Company’s Initial Public Offering, a copy of which shall have been furnished to the Purchaser and on which Purchaser shall be
entitled to rely; 
  
 (d) no Court Order shall
have been issued or entered into that would be violated by consummation of any of the transactions contemplated hereby and no lawsuit, action, arbitration, administrative or other proceeding, criminal prosecution or governmental investigation or
inquiry shall have been instituted or threatened which questions the validity or legality of the transactions contemplated hereby; 
  
 (e) the fulfillment in all respects of those undertakings of the Company set forth herein to be fulfilled prior to Closing; 
  
 (f) the Purchaser’s receipt of a certificate,
reasonably satisfactory in form and content to the Purchaser and executed by an officer of the Company, certifying that the conditions specified in clauses (c) and (e) hereof have been fulfilled and that the closing of the Initial Public Offering
has occurred; 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 9 

 (g) all authorizations, approvals, or permits, if any, of any governmental authority or
regulatory body of the United States of America or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall be duly obtained and effective as of the Closing. The Company shall have
obtained all necessary blue sky permits and qualifications, or have the availability of exemptions therefrom, required by any state for the offer and sale of the Shares; and 
  
 (h) the Purchaser’s receipt of good standing certificates for the Company and certification by the
Company’s Secretary regarding the Board of Director and, if applicable, stockholder resolutions relating to this transaction. 
  
 ARTICLE IV 
  
 Representations and Warranties of the Company 
  
 The Company hereby represents and warrants to the Purchaser as follows on the date hereof and, subject to Article 2, as of Closing: 
  
 Section 4.1 Organization and Standing; Subsidiaries. 
  
 (a) The Company is a duly organized and validly existing
corporation in good standing under the laws of the State of Delaware and has all requisite corporate power and authority for the ownership and operation of its properties and for the carrying on of its business as now conducted and as now proposed
to be conducted. The Company is duly licensed or qualified and in good standing as a foreign corporation authorized to do business in all jurisdictions wherein the character of the property owned or leased, or the nature of the activities conducted,
by it makes such licensing or qualification necessary, except for those jurisdictions in which the failure to be so licensed or qualified, individually or in the aggregate, would not reasonably be expected to have a material adverse effect on the
business, operations, affairs or condition (financial or otherwise) of the Company or its properties or assets taken as a whole (a “Material Adverse Effect”). 
  
 (b) The attached Disclosure Letter contains a list of all of subsidiaries of the Company. Except for such
subsidiaries, the Company does not (i) own of record or beneficially, directly or indirectly, (A) any shares of capital stock or securities convertible into capital stock of 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 10 

 
any other corporation or (B) any participating interest in any partnership, limited liability company, joint venture or other non-corporate business
enterprise, or (C) any assets comprising the business or obligations of any other corporation, partnership, joint venture or other non-corporate business enterprise or (ii) control, directly or indirectly, any other entity. 
  
 (c) Each of the subsidiaries is a corporation or limited
liability company duly incorporated or organized, validly existing and in good standing (where such a concept exists) under the laws of its respective jurisdiction of incorporation or organization and is duly licensed or qualified to transact
business as a foreign corporation or foreign limited liability company and is in good standing (where such a concept exists) in each jurisdiction in which the nature of the business transacted by it or the character of the properties owned or leased
by it requires such licensing or qualification, except for those jurisdictions in which the failure to be so licensed or qualified, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. Each of the
subsidiaries has the corporate power and authority to own and hold its properties and to carry on its business as now conducted and as proposed to be conducted. All of the outstanding shares of capital stock of each of the subsidiaries are owned
beneficially and of record by the Company, one of its other wholly owned subsidiaries, or any combination of the Company and/or one or more of its other wholly owned subsidiaries, all as specified in the Disclosure Letter, in each case free and
clear of any liens, charges, restrictions, claims or encumbrances of any nature whatsoever, except for those set forth in the Disclosure Letter; and, except as set forth in the Disclosure Letter, there are no outstanding subscriptions, warrants,
options, convertible securities, or other rights (contingent or other) pursuant to which any of the subsidiaries is or may become obligated to issue any shares of its capital stock to any person other than the Company or one of the other
subsidiaries. 
  
 Section 4.2 Corporate Action. The Company
has all necessary corporate power and has taken all corporate action required to enter into and perform this Agreement. This Agreement is a valid and binding obligation of the Company, enforceable in accordance with its respective terms. The
issuance, sale and delivery of the Shares of Common Stock in accordance with this Agreement has been duly authorized by all necessary corporate action on the part of the Company. The Shares of Common Stock, when issued, sold and delivered against
payment therefor in accordance with the terms of this Agreement, will be duly and validly issued, fully 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 11 

 
paid and non-assessable. The Shares of Common Stock will not be subject to any Lien, and will not conflict with any provision of any material agreement or
material instrument to which the Company is a party or by which it or its property is bound. 
  
 Section 4.3 Governmental Approvals. Except for the filing of any notice subsequent to the Closing that may be required under applicable state and/or federal securities laws (which, if required, shall be filed
on a timely basis), no authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, is or will be necessary
for the execution and delivery by the Company of this Agreement, for the offer, issue, sale and delivery of the Shares of Common Stock or for the performance by the Company of its obligations under this Agreement. 
  
 Section 4.4 Litigation. There is no litigation or governmental
proceeding or investigation pending or, to the Company’s knowledge, threatened against the Company or any of its subsidiaries affecting any of its respective properties or assets, or to the Company’s knowledge, pending or threatened
against any officer or Key Employee of the Company or any subsidiary or holder of more than five percent (5%) of the capital stock of the Company relating to such person’s performance of duties for the Company or relating to his stock ownership
in the Company or otherwise relating to the business of the Company or any subsidiary, nor to the knowledge of the Company has there occurred any event or does there exist any condition on the basis of which any such litigation, proceeding or
investigation might reasonably be expected to be properly instituted. Neither the Company or any subsidiary nor, to the Company’s knowledge, any officer or Key Employee of the Company or any subsidiary or holder of more than five percent (5%)
of the capital stock of the Company is in default with respect to any order, writ, injunction, decree, ruling or decision of any court, commission, board or other governmental agency. There are no actions, suits, claims, investigations or
proceedings pending against or, to the knowledge of the Company, threatened against or affecting the Company or any subsidiary (or any basis therefor) which could reasonably be expected to result, either in any case or in the aggregate, in any
Material Adverse Effect, or which directly or indirectly challenge the validity of this Agreement, any of the Shares of Common Stock or any action taken or to be taken pursuant hereto or thereto. The foregoing sentences include, without limiting
their 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 12 

 
generality, actions pending against the Company or any subsidiary or, to the knowledge of the Company, threatened against or with the Company or any
subsidiary (or any basis therefor) involving the prior employment of any of the Company’s or any subsidiary’s officers or employees or their use in connection with the Company’s or any subsidiary’s business of any information or
techniques allegedly proprietary to any of their former employers. 
  
 Section 4.5 Certain Agreements of Officers and Key Employees. 
  
 (a) Except as set forth in the Disclosure Letter, neither the Company nor any subsidiary is a party to or obligated in connection with its business with respect to (i) outstanding contracts with employees, agents,
consultants, advisers, sales representatives, distributors, sales agents or dealers or (ii) collective bargaining agreements or contracts with any labor union or other representative of employees or any employee benefits provided for by any such
agreement. 
  
 (b) To the knowledge of the
Company (i) no officer or Key Employee of the Company or any subsidiary is in violation of any term of any employment contract, patent disclosure agreement, proprietary information agreement, noncompetition agreement, or any other contract or
agreement or any restrictive covenant relating to the right of any such officer or Key Employee to be employed by the Company or any subsidiary because of the nature of the business conducted or to be conducted by the Company or any subsidiary or
relating to the use of trade secrets or proprietary information of others, and (ii) the continued employment of the Company’s or any subsidiary’s officers and Key Employees does not subject the Company, any of its subsidiaries or any
Purchaser to any liability to third parties. 
  
 (c) To the knowledge of the Company, no officer of the Company or any subsidiary nor any Key Employee of the Company or any subsidiary whose termination, either individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect, has expressed any present intention of terminating his employment with the Company or any subsidiary. 
  
 Section 4.6 Compliance with Other Instruments. The Company and each subsidiary is in compliance with all of the terms and provisions of this
Agreement and of its certificate of incorporation and bylaws or other constitutive documents, and with all mortgages, indentures, 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 13 

 
leases, agreements and other instruments, if any, by which it is bound or to which it or any of its respective properties or assets are subject, except any
noncompliance which, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. The Company and each subsidiary is in compliance with all judgments, decrees, governmental orders, statutes, rules or
regulations by which it is bound or to which any of its properties or assets are subject. Neither the execution and delivery of this Agreement, the issuance of the Shares of Common Stock nor the consummation of any transaction contemplated by this
Agreement, has constituted or resulted in or will constitute or result in a default or violation of any term or provision of any of the foregoing documents, instruments, judgments, agreements, decrees, orders, statutes, rules and regulations, except
for such defaults or violations which, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 
  
 Section 4.7 Financial Information. The Disclosure Letter contains: (i) the audited consolidated balance sheet (the “Balance Sheet”) of
the Company and its subsidiaries as at December 31, 2003 (the “Balance Sheet Date”) and the related audited statements of income, stockholders’ equity and cash flows for the year then ended, and (ii) the unaudited consolidated balance
sheet of the Company and its subsidiaries as at September 30, 2004 and the related unaudited statements of income, stockholders’ equity and cash flows for the nine-month period then ended (collectively, the “Financial Statements”).
The Financial Statements present fairly the financial position of the Company and its subsidiaries as of the dates thereof and the results of operations for the period covered thereby and have been prepared in accordance with generally accepted
accounting principles consistently applied, except for the absence of footnotes not customarily included in such statements. The Company does not have reasonable grounds to know of, any material liability, contingent or otherwise, not adequately
reflected in or reserved against in the aforesaid financial statements or in the notes thereto. Except as set forth in the Disclosure Letter, since the Balance Sheet Date, (i) there has been no Material Adverse Effect, (ii) neither the business,
condition, or operations of the Company or any subsidiary nor any of the properties or assets of the Company or any subsidiary have been adversely affected as the result of any legislative or regulatory change, any revocation or change in any
franchise, permit, license or right to do business, or any other event or occurrence, whether or not insured against; and (iii) neither the Company nor any subsidiary has entered into any material transaction other 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 14 

 
than in the ordinary course of business, made any dividend or distribution on its capital stock, or redeemed or repurchased any of its capital stock, other
than repurchases of Common Stock from employees, directors or consultants of the Company and its subsidiaries upon termination pursuant to terms of agreements previously entered into with such persons. 
  
 Section 4.8 No Insolvency. No insolvency proceeding of any character,
including, without limitation, bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary or involuntary, affecting the Company or any subsidiary or any of its assets or properties, is pending or, to the knowledge
of the Company, threatened. Neither the Company nor any subsidiary has taken any action in contemplation of, or that would constitute the basis for, the institution of any such insolvency proceedings. 
  
 Section 4.9 ERISA. Except as set forth in the Disclosure Letter,
neither the Company nor any ERISA Affiliate (as defined below) has ever maintained, sponsored, contributed to or incurred any liability under any employment, consulting, equity incentive and severance agreements, any cash incentive, equity
incentive, profit-sharing, savings, pension, medical, dental, life insurance, disability insurance, cafeteria or flexible benefits plans and any other employee benefit plan, program or arrangement, whether written or oral, including but not limited
to any “employee benefit plan” within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) (collectively, the “Benefit Plans”) subject to Section 412 of
the Internal Revenue Code of 1986 (the “Code”) or Title IV of ERISA. Neither the Company nor any ERISA Affiliate has ever incurred any obligation to contribute to or any liability under any “multiemployer plan” within the
meaning of Section 4001(a)(3) of ERISA or ever participated in any “multiple employer plan” within the meaning of Section 413(c) of the Code. The written terms of each Benefit Plan of the Company and of each ERISA Affiliate are, and the
Benefit Plans have been administered, in compliance with the requirements of ERISA, and, where applicable, Section 401 of the Code. There are not now, nor have there been, any transactions involving any of the Company’s Benefit Plans which are
prohibited under ERISA or the Code. There are no threatened or pending claims by or on behalf of any of the Company’s Benefit Plans or by any employee of the Company alleging a breach or breaches of fiduciary duties or violations of other
applicable state or federal law which could 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 15 

 
result in liability on the part of the Company or any of the Company’s Benefit Plan under ERISA or any other law, nor to the Company’s knowledge is
there any basis for such a claim. All returns, reports, disclosure statements and premium payments required to be made under ERISA and the Code with respect to the Company’s Benefit Plans have been timely filed or delivered. Each Benefit Plan
of the Company or any ERISA Affiliate that is intended to be qualified under Section 401(a) of the Code has received a determination letter from the Internal Revenue Service covering all amendments required to be adopted to date and, to the
knowledge of the Company, there are no circumstances which exist that are reasonably likely to adversely affect the tax-qualified status of such Benefit Plan or result in the revocation of such letter. The Company and each ERISA Affiliate has made
all contributions and payments required to be made to each of its Benefit Plans within the time prescribed by law or, if earlier, the terms of the Benefit Plan. The term “ERISA Affiliate” means any entity that, together with the
Company, is treated as a single-employer within the meaning of Sections 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA. 
  
 Section 4.10 Transactions with Affiliates. Except as set forth in the Disclosure Letter, and except as contemplated hereby, there are no loans,
leases, royalty agreements or other continuing transactions between the Company or any subsidiary and (a) any officer, employee or director of the Company or any subsidiary, or (b) any person owning five percent (5%) or more of any class of capital
stock of the Company, or (c) any member of the immediate family of such officer, employee, director or stockholder, or (d) any corporation or other entity controlled by such officer, employee, director or stockholder or a member of the immediate
family of such officer, employee, director or stockholder. 
  
 Section 4.11 Assumptions or Guaranties of Indebtedness of Other Persons. Except as contemplated hereby, neither the Company nor any subsidiary has assumed, guaranteed, endorsed or otherwise become directly or contingently liable on
(including, without limitation, liability by way of agreement, contingent or otherwise, to purchase, to provide funds for payment, to supply funds to or otherwise invest in the debtor or otherwise to assure the creditor against loss), any
Indebtedness of any other person. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 16 

 Section 4.12 Investments in Other Persons. Except as set forth in the Disclosure Letter, neither
the Company nor any subsidiary has made any loan or advance to any person, other than in the normal course of business and on an arm’s length basis on commercially reasonable terms and as reflected in the Financial Statements, which, after
giving effect to the transactions contemplated hereby, is outstanding on the date of this Agreement, nor is it committed or obligated to make any such loan or advance. 
  
 Section 4.13 Securities Act of 1933. The Company has complied and will comply with all applicable federal and state
securities laws in connection with the offer, issuance and sale of the Shares of Common Stock. Neither the Company nor anyone acting on its behalf has or will sell, offer to sell or solicit offers to buy the Shares of Common Stock, or solicit offers
with respect thereto from, or enter into any preliminary conversations or negotiations relating thereto with, any person, so as to bring the issuance and sale of the Shares of Common Stock under the registration provisions of the Securities Act and
applicable state securities laws. 
  
 Section 4.14 Brokers or
Finders. No person has or will have, as a result of the transactions contemplated by this Agreement, any right, interest or valid claim against or upon the Company or any subsidiary for any commission, fee or other compensation as a finder or
broker because of any act or omission by the Company or any of their respective agents. 
  
 Section 4.15 Capitalization; Status of Capital Stock. 
  
 (a) As of the date of this Agreement, the Company has a total authorized capitalization consisting of (i) 125,000,000 shares of Common
Stock, of which (a) 4,765,328 shares are issued and outstanding as of the date of this Agreement, and (b) 16,239,375 shares have been reserved for issuance upon exercise of options issuable under the Company’s 1997 Employee, Director and
Consultant Stock Option Plan, as amended (the “Stock Plan”), of which options to purchase 11,342,561 shares have been granted to employees, consultants or directors and are outstanding as of the date of this Agreement and 1,675,328
shares have been issued pursuant to stock option exercises, which shares are included in the Common Stock outstanding; and (ii) 67,946,524 shares of Preferred Stock, of which 1,530,000 are designated as Series A Preferred Stock, 591,000 are
designated as Series B Preferred Stock, 5,029,000 are 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 17 

 
designated as Series C Preferred Stock, 3,759,088 are designated as Series D Preferred Stock, 1,815,992 are designated as Series E Preferred Stock,
34,502,875 are designated as Series F Preferred Stock and 20,718,569 are designated as Series G Preferred Stock. As of the date of this Agreement, 1,530,000 shares of Series A Preferred Stock, 591,000 shares of Series B Preferred Stock, 4,355,000
shares of Series C Preferred Stock, 3,759,088 shares of Series D Preferred Stock, 1,813,485 shares of Series E Preferred Stock, 26,322,107 shares of Series F Preferred Stock, and 20,476,068 shares of Series G Preferred Stock are validly issued and
outstanding. 
  
 (b) A complete list of the
capital stock of the Company that has been previously issued and the names in which such capital stock is registered on the stock transfer books of the Company is set forth in the Disclosure Letter. All the outstanding shares of capital stock of the
Company have been duly authorized, and are validly issued, fully paid and non-assessable. The designations, powers, preferences, rights, qualifications, limitations and restrictions in respect of each class and series of authorized capital stock of
the Company are as set forth in the Fourth Amended and Restated Certificate of Incorporation of the Company (the “Charter”), and all such designations, powers, preferences, rights, qualifications, limitations and restrictions are valid,
binding and enforceable and in accordance with all applicable laws, except as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally. Except as otherwise set
forth in the Disclosure Letter, no preemptive, conversion or other rights, options, warrants, subscriptions or purchase rights of any nature to acquire from the Company shares of capital stock or other securities are authorized, issued or
outstanding, nor is the Company obligated in any other manner to issue shares of its capital stock or other securities except as contemplated by this Agreement. Except as set forth in the Disclosure Letter, there are no restrictions on the transfer
of shares of capital stock of the Company other than those imposed by relevant federal and state securities laws and as otherwise contemplated by this Agreement. Other than as set forth in the Second Amended and Restated Stockholders Agreement dated
August 30, 2004, there are no agreements, understandings, trusts or other collaborative arrangements or understandings concerning the voting of the capital stock of the Company. The offer and sale of all capital stock and other securities of the
Company issued before the date of this Agreement complied with or were 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 18 

 
exempt from all applicable federal and state securities laws and no stockholder has a right of rescission with respect thereto. 
  
 Section 4.16 Registration Rights. Except as set forth in the
Disclosure Letter, and except as contemplated hereby, no person has demand or other rights to cause the Company to file any registration statement under the Securities Act relating to any securities of the Company or any right to participate in any
such registration statement. 
  
 Section 4.17 Insurance.
The Company and each of its subsidiaries carries insurance covering its properties and businesses customary for the type and scope of its properties and businesses, but in any event in amounts sufficient to prevent the Company or any subsidiary from
becoming a co-insurer. 
  
 Section 4.18 Books and Records.
The books of account, ledgers, order books, records and documents of the Company and each of its subsidiaries accurately and completely reflect all material information relating to the business of the Company and each of its subsidiaries, the
location and collection of its assets, and the nature of all transactions giving rise to the obligations or accounts receivable of the Company and each of its subsidiaries. 
  
 Section 4.19 Title to Assets. The Company and each of its subsidiaries has good and marketable title in fee to such
of its fixed assets, if any, as are real property, and good and marketable title to all of its other assets and properties, free of any Liens, except for those set forth in the Disclosure Letter. The Company and each of its subsidiaries enjoys
peaceful and undisturbed possession under all leases under which it is operating, and all said leases are valid and subsisting and in full force and effect. 
  
 Section 4.20 Computer Programs. Except as set forth in the Disclosure Letter and other than commercially available, off-the-shelf computer
software, neither the Company nor any subsidiary owns, licenses or otherwise uses any computer software in connection with the operation of its business as currently conducted. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 19 

 Section 4.21 Real Property Holding Corporation. Since its date of incorporation, the Company has
not been, and as of the date of this Agreement shall not be, a “United States real property holding corporation,” as defined in Section 897(c)(2) of the Code, and in Section 1.897-2(b) of the Treasury Regulations issued thereunder. The
Company has no current plans or intentions which would cause the Company to become a “United States real property holding corporation,” and the Company has filed with the IRS all statements, if any, with its United States income tax
returns which are required under Section 1.897-2(h) of the Treasury Regulations. 
  
 Section 4.22 Taxes. The Company and each of its subsidiaries has filed all tax returns, federal, state, county and local, domestic and foreign, required to be filed by it, and the Company and each of its
subsidiaries has paid all taxes shown to be due by such returns as well as all other taxes, assessments and governmental charges which have become due or payable, including without limitation all taxes which the Company or each of its subsidiaries
is obligated to withhold from amounts owing to employees, creditors and third parties. The Company has established adequate reserves for all taxes accrued but not yet payable to the extent required by generally accepted accounting principles. All
material tax elections of any type which the Company and each of its subsidiaries has made as of the date hereof are set forth in the Financial Statements. No deficiency assessment with respect to or, proposed adjustment of the Company’s or any
subsidiary’s federal, state, county or local taxes, domestic and foreign, is pending or, to the knowledge of the Company, threatened. There is no tax lien (other than for current taxes not yet due and payable), whether imposed by any federal,
state, county or local taxing authority, domestic or foreign, outstanding against the assets, properties or business of the Company or any subsidiary. Neither the Company (including any subsidiary) nor any of its present or former stockholders has
ever filed an election pursuant to Section 1362 of the Code, that the Company or any subsidiary be taxed as an S corporation. 
  
 Section 4.23 Other Agreements. Except as set forth in the Disclosure Letter, neither the Company nor any subsidiary is a party to or otherwise
bound by any written or oral agreement, instrument, commitment or restriction which individually or in the aggregate could have a Material Adverse Effect or any other written or oral: 
  
 (a) distributor, dealer or manufacturer’s representative contract or agreement which is not terminable
on less than ninety (90) days’ notice without cost or other liability to the Company or any subsidiary (except for contracts which, in the aggregate, are not material to the business of the Company or any subsidiary); 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 20 

 (b) sales agreement which entitles any customer to a rebate or right of set-off, to
return any product to the Company or any subsidiary after acceptance thereof or to delay the acceptance thereof, or which varies in any material respect from the Company’s or any subsidiary’s standard form contracts (except for contracts
which, in the aggregate, are not material to the business of the Company or any subsidiary); 
  
 (c) agreement with any labor union in the United States or any foreign jurisdiction (and, to the Company’s knowledge, no
organizational effort is being made with respect to any of its employees); 
  
 (d) agreement with any supplier containing any provision permitting any party other than the Company or any subsidiary to renegotiate the price or other terms, or containing any pay-back or other similar provision,
upon the occurrence of a failure by the Company or any subsidiary to meet its obligations under the agreement when due or the occurrence of any other event (except for contracts which, in the aggregate, are not material to the business of the
Company or any subsidiary); 
  
 (e) agreement for
the future purchase of fixed assets or for the future purchase of materials, supplies or equipment in excess of its normal operating requirements; 
  
 (f) agreement for the employment of any officer, individual, employee or other person (whether of a legally binding nature or in the
nature of informal understandings) on a full-time or consulting basis which is not terminable on notice without cost or other liability to the Company or any subsidiary, except accrued vacation pay; 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 21 

 (g) bonus, pension, profit-sharing, retirement, hospitalization, insurance, stock
purchase, stock option or similar plan, agreement or understanding pursuant to which benefits are provided to any employee of the Company or any subsidiary (other than group insurance plans applicable to employees generally or as otherwise required
by law); 
  
 (h) agreement or indenture relating
to the borrowing of money or to the mortgaging or pledging of, or otherwise placing a lien or security interest on, any material asset of the Company or any subsidiary; 
  
 (i) agreement, or group of related agreements with the same party or any group of affiliated parties, under
which the Company or any subsidiary has advanced or agreed to advance money, has agreed to lease any real property as lessee or lessor, or has agreed to lease any personal property as lessee or lessor if such lease for personal property was not
entered into in the ordinary course of business; 
  
 (j) agreement or obligation (contingent or otherwise) to issue, sell or otherwise distribute or to repurchase or otherwise acquire or retire any shares of its capital stock or any of its other equity securities (other than in connection
with the transaction contemplated by this Agreement); 
  
 (k) assignment, license or other agreement with respect to any form of intangible property, which assignment, license or other agreement was entered into other than in the ordinary course of business; 
  
 (l) agreement under which it has granted any person
registration rights with respect to its capital stock; 
  
 (m) agreement under which it has limited or restricted its right to compete with any person in any respect; 
  
 (n) except as set forth above, any other agreement or group of related contracts with the same party involving more than $100,000 or
continuing over a period of more than six months from the date or dates thereof (including renewals or extensions of options with 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 22 

 
another party), which agreement or group of agreements is not terminable by the Company or any subsidiary without penalty upon notice of thirty (30) days or
less, but excluding any agreement or group of agreements with a customer of the Company or any subsidiary for the sale, lease or rental of the Company’s or any subsidiary’s products or services if such agreement or group of agreements was
entered into by the Company or such subsidiary in the ordinary course of business; or 
  
 (o) other contract, instrument, commitment, plan or arrangement, a copy of which would be required to be filed with the Commission as an
exhibit to a registration statement on Form S-1 if the Company were registering securities under the Securities Act. 
  
 Except as set forth in the Disclosure Letter, the Company and each of its subsidiaries and, to the Company’s knowledge after due inquiry, each other party thereto
have in all material respects performed all the actions required to be performed by them to date and neither the Company nor any subsidiary has received any notice of default and is, and to the Company’s knowledge, each other party thereto is
not, in default under any lease, agreement or contract now in effect to which the Company or any subsidiary is a party or by which it or its property may be bound. Neither the Company nor any subsidiary has any present expectation or intention of
not fully performing all its respective material obligations under each such lease, contract or other agreement, and neither the Company nor any subsidiary has any knowledge of any material breach or anticipated breach by the other party to any
contract or commitment to which the Company or such subsidiary is a party. 
  
 Section 4.24 Foreign Corrupt Practices Act. Neither the Company nor any subsidiary has taken any action which would cause it to be in violation of the Foreign Corrupt Practices Act of 1977, as amended, or any
rules and regulations thereunder. To the Company’s knowledge, there is not now, and there has never been, any employment by the Company or any subsidiary of, or beneficial ownership in the Company or any subsidiary by, any governmental or
political official in any country in the world. 
  
 Section 4.25
Federal Reserve Regulations. Neither the Company nor any subsidiary is engaged in the business of extending credit for the purpose of purchasing or carrying margin 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 23 

 
securities (within the meaning of Regulation G of the Board of Governors of the Federal Reserve System), and no part of the proceeds of the sale of the
Shares of Common Stock will be used to purchase or carry any margin security or to extend credit to others for the purpose of purchasing or carrying any margin security or in any other manner which would involve a violation of any of the regulations
of the Board of Governors of the Federal Reserve System. 
  
 Section 4.26 Significant Customer or Supplier. The Disclosure Letter lists all of the Company’s and of its subsidiary’s significant customers, suppliers and vendors (the “Significant Parties”), and none of the
Significant Parties has terminated, materially reduced or threatened to terminate or materially reduce its purchases from or provision of products or services to the Company or any of its subsidiaries, as the case may be. 
  
 Section 4.27 Environmental Liabilities. Neither the Company nor any
subsidiary has caused or allowed, or contracted with any party for the generation, use, transportation, treatment, storage or disposal of any Hazardous Substances (as defined below) in connection with the operation of its business or otherwise. The
Company and each of its subsidiaries, the operation of its business, and any real property that the Company and each of its subsidiaries owns, leases or otherwise occupies or uses (the “Premises”) are in compliance in all material
respects with all applicable Environmental Laws (as defined below) and orders or directives of any governmental authorities having jurisdiction under such Environmental Laws, including, without limitation, any Environmental Laws or orders or
directives with respect to any cleanup or remediation of any release or threat of release of Hazardous Substances. Neither the Company nor any subsidiary has received any citation, directive, letter or other communication, written or oral, or any
notice of any proceeding, claim or lawsuit, from any person arising out of the ownership or occupation of the Premises, or the conduct of its operations, and neither the Company nor any subsidiary is aware of any basis therefor. The Company and each
of its subsidiaries has obtained and is maintaining in full force and effect all necessary permits, licenses and approvals required by all Environmental Laws applicable to the Premises and the business operations conducted thereon (including
operations conducted by tenants on the Premises), and is in compliance with all such permits, licenses and approvals. Neither the Company nor any subsidiary has caused or allowed a release, or a threat of release, of any Hazardous Substance unto, at
or near the 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 24 

 
Premises, and, to the best of the Company’s knowledge, neither the Premises nor any property at or near the Premises has ever been subject to a release,
or a threat of release, of any Hazardous Substance. For the purposes of this Agreement, the term “Environmental Laws” shall mean any federal, foreign (as applicable), state or local law or ordinance or regulation pertaining to the
protection of human health or the environment, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Sections 9601, et seq., the Emergency Planning and Community Right-to-Know Act, 42
U.S.C. Sections 11001, et. seq., and the Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901, et. seq. For purposes of this Agreement, the term “Hazardous Substances” shall include oil and petroleum products, asbestos,
polychlorinated biphenyls, urea formaldehyde and any other materials classified as hazardous or toxic under any Environmental Laws. 
  
 Section 4.28 Disclosure. Neither this Agreement nor any other document, certificate or written statement furnished to the Purchaser or its counsel
by or on behalf of the Company in connection with the transaction contemplated hereby, including, at the time of Closing, the final Prospectus relating to the Initial Public Offering, a copy of which has been furnished to the Purchaser, contains any
untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein, in view of the circumstances under which they were made, not misleading. 
  
 ARTICLE V 
 Representations and Warranties of the Purchaser 
  
 Section 5.1 Securities Act Exemption. The Purchaser hereby represents and warrants to the Company, on the date hereof and, subject to Article 2, as
of Closing, as follows: (i) the Purchaser is an “accredited investor” as defined in Regulation D under the Securities Act and also is knowledgeable and experienced in making investments in private placement transactions such as the
purchase of the Shares; (ii) effective as of Closing, the Purchaser is acquiring the Shares for its own account for investment and with no present intention of distributing any of such Shares, and no arrangement or understanding exists with any
other person regarding the distribution of any of such Shares (this representation and warranty not limiting the Purchaser’s right to sell pursuant to an effective registration statement registering the Shares for resale or 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 25 

 
pursuant to any other means of sale legally available); and (iii) effective as of Closing and subject to the cooperation of the Company, the Purchaser has
had an opportunity to ask questions of and receive answers from the management of the Company regarding the Company, its business and the offering of the Shares. 
  
 Section 5.2 Due Authorization. (a) The Purchaser further represents and warrants to the Company that, on the date
hereof and, subject to Article 2, as of Closing, the Purchaser has all requisite right, power and authority to enter into and perform this Agreement. The execution and delivery of this Agreement by the Purchaser and the consummation by it of the
transactions contemplated hereby have been duly authorized by all necessary corporate action on behalf of such Purchaser. This Agreement constitutes a valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with
its terms, (i) except as rights to indemnity and contribution may be limited by state, federal or foreign laws or the public policy underlying such laws, (ii) except as enforceability may be limited by applicable bankruptcy, fraudulent conveyance,
insolvency, reorganization, moratorium or similar laws now or hereafter in effect affecting creditors’ and contracting parties’ rights generally and (iii) except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law). 
  
 (b) The Purchaser further represents and warrants to the Company that, on the date hereof and, subject to Article 2, as of Closing,
neither the execution and delivery of this Agreement by the Purchaser nor the consummation by it of the transactions contemplated hereby conflicts with or constitutes a violation of or default under the charter, by-laws or other organizational
documents of the Purchaser, any statute, law, regulation, order or decree applicable to the Purchaser, or any contract, commitment, agreement, arrangement or restriction of any kind to which the Purchaser is a party or by which it is bound.

  
 Section 5.3 Restrictions on Transfer. The Purchaser
acknowledges and understands that the Purchaser must bear the economic risk of its investment in the Shares for an indefinite period of time because the Shares will not have been registered under the Securities Act and, therefore, cannot voluntarily
be offered, sold, pledged or otherwise disposed of unless registered under the Securities Act or an exemption from such registration is available and in compliance 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 26 

 
with applicable state and foreign securities laws. The certificates representing the Shares issued to the Purchaser will bear a legend in substantially the
following form: 
  
 THE SECURITIES EVIDENCED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). SUCH SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED, OR A SALE PURSUANT TO RULE 144 OF THE SECURITIES ACT. THE SECURITIES EVIDENCED BY THIS
CERTIFICATE ARE ALSO SUBJECT TO THE PROVISIONS OF A STOCK PURCHASE AGREEMENT DATED AS OF MARCH 11, 2005. 
  
 The Purchaser agrees that any sale, transfer, pledge, hypothecation or other disposition of the Shares shall be made in compliance with such legends.

  
 Section 5.4 Lock-up. During the period commencing on
the Initial Public Offering and ending on the earliest to occur of (x) the [*****] anniversary thereof or (y) such date as the Purchaser waives all of its rights (but in no event earlier than the [*****] anniversary of the closing of the Initial
Public Offering) to register Shares pursuant to Article VIII or (z) such date as the Purchaser no longer owns at least [**] of the outstanding shares of Common Stock of the Company, the Purchaser agrees that it shall, if so requested by the Company,
enter into an agreement providing that it shall not offer, sell or grant an option for the sale, or otherwise dispose of (collectively, “transfer”) any Shares of Common Stock or any securities convertible into or exercisable for Shares of
Common Stock (including, without limitation, the Shares and any options, warrants, stock appreciation rights, or similar rights with an exercise or conversion privilege at a price related to, or derived from, the market price of Shares of Common
Stock), during the 14-day period prior to, and during the 90-day period beginning on, the date of any firm commitment underwritten public offering of Common Stock (180-day period in the case of 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 27 

 
the Initial Public Offering), without the prior written consent of the managing underwriters of such public offering; provided, however, that this Section
5.4 shall not apply or be effective unless all executive officers and directors and all shareholders of the Company’s outstanding Common Stock having an ownership interest equal to or greater than that held by the Purchaser (calculated on a
fully-diluted basis) and having registration rights entitling them to participate in the public offering enter into similar agreements, and shall only take effect following notice to the Purchaser of the foregoing. 
  
 Section 5.5 Compliance. The Purchaser acknowledges that it is aware
that by receiving certain information under this Agreement, the License Agreement and/or the S & E Agreement (i) it may result in the Purchaser receiving material non-public information about the Company and (ii) there exist United States
federal and state securities laws that may restrict or eliminate the recipient’s ability to sell or purchase securities of the Company. The Purchaser agrees with the Company to comply in all material respects with all United States federal and
state securities laws. 
  
 ARTICLE VI 
 Survival of Representations, Warranties and Agreements 
  
 Section 6.1 Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any
party to this Agreement, all covenants, agreements, representations and warranties made by the Company and the Purchaser herein shall survive the execution hereof, the delivery to the Purchaser of the Shares being purchased, and the payment
therefor. 
  
 ARTICLE VII 
 Limitations and Restrictions 
  
 Section 7.1 Restrictions on Certain Actions by the Purchaser. Except (i) with the written consent of the Company or (ii) by way of stock dividends
or other distributions or offerings made available to the Company’s shareholders generally, or (iii) pursuant to a merger, reclassification, recapitalization or other similar transaction approved by the Company’s Board of Directors, or
(iv) pursuant to a rights offering pursuant to which the Purchaser offers to 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 28 

 
purchase such number of shares of Voting Stock so that its percentage of owned Voting Stock after the rights offering is not more than its percentage of
ownership before the rights offering, assuming all shares of Voting Stock offered in the rights offering are in fact sold or (v) as provided in this Agreement, the Purchaser agrees that it will not, nor will any of its Affiliates: 
  
 (a) sell, exchange, transfer or otherwise dispose of the
Shares acquired pursuant to this Agreement until [*************************************************** ***********************]; 
  
 (b) during the Standstill Period: 
  
 (i) acquire or agree, offer, seek or propose to acquire ownership, or cause ownership to be acquired (including, but not limited to,
beneficial ownership as defined in Rule 13d-3 under the Exchange Act) of any Voting Stock of the Company or securities convertible or exchangeable into or exercisable for any Voting Stock of the Company if as a result of such acquisition, the
Purchaser and any Affiliates controlled by the Purchaser in the aggregate would own more than [***] of the Voting Stock of the Company at the time of such acquisition; 
  
 (ii) initiate or participate as the soliciting party in any Proxy Solicitation involving any election
contest subject to Regulation 14A under the Exchange Act with respect to the Company; 
  
 (iii) form or join, or permit any Affiliate controlled by the Purchaser to form or join, any partnership, limited partnership, syndicate
or other “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect [*****************************************************************************************]; 
  
 (iv) arrange, or in any way participate in, any financing
for the purchase of any Voting Stock or securities convertible or exchangeable into or exercisable for any Voting Stock or assets of the Company that would violate clause (i) above; or 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 29 

 (v) enter into any discussions, negotiations, arrangements or understandings with, or
advise, assist or encourage any other person with respect to, any of the foregoing prohibited matters in this Section 7.1(b). 
  
 (c) Nothing contained in this Section 7 shall preclude the Purchaser from (i) making proposals, on a confidential basis, to the Company or
its Board of Directors, or (ii) seeking a waiver from the Company of any of the foregoing provisions of this Section 7, or (iii) selling Common Stock of the Company in a tender offer or exchange offer initiated by a person other than the Purchaser
or its Affiliates, or (iv) in the case where the Purchaser’s percentage ownership of the outstanding shares of Common Stock has increased above the percentage ownership in effect as of the Closing (the “Closing Percentage”) for any
reason (other than a purchase of shares of Common Stock by the Purchaser from any person after the Closing), disposing of any number of shares in one or more transactions up to the amount that would result in the Purchaser owning a percentage of the
outstanding shares of the Company equal to or greater than the Closing Percentage. Nothing contained in this Section 7 shall preclude the Purchaser (and the Company agrees to facilitate), in the case where the Purchaser’s percentage ownership
of the outstanding shares of Common Stock has decreased below the Closing Percentage for any reason (other than a sale or other transfer by the Purchaser to any third party after the Closing), from acquiring shares of Common Stock in one or more
transactions from the Company up to an amount that would result in the Purchaser owning a percentage of the outstanding shares of the Company equal to or less than the Closing Percentage; it being understood that if, following 30 days prior written
notice to the Company that the Purchaser wishes to acquire shares of Common Stock pursuant to this sentence and no such requested sale has occurred, the Purchaser shall be entitled to purchase such requested shares of Common Stock from any person.

  
 (d) Notwithstanding anything to the contrary
contained herein, the prohibitions set forth in this Section 7.1 shall not apply to (i) any investment in any Voting Stock of the Company by or on behalf of any pension or employee benefit plan or trust, including without limitation (1) any direct
or indirect interests in portfolio securities held by an investment company registered under the Investment Company Act of 1940, as amended, or (2) interests in securities comprising part of a mutual fund or broad based, publicly traded market
basket or 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 30 

 
index of stocks approved for such a plan or trust in which such plan or trust invests; or (ii) Voting Stock of the Company held by a person acquired by the
Purchaser on the date such person first entered into an agreement to be acquired by the Purchaser or acquired after such person was acquired by the Purchaser pursuant to an agreement requiring (but only to the extent requiring) such person to sell
or acquire such Voting Stock, which agreement was in effect on the date such person first entered into an agreement to be acquired by the Purchaser, or (iii) any assets or securities of the Company, as debtor, that are acquired in a transaction
subject to the approval of the United States Bankruptcy Court pursuant to proceedings under the United States Bankruptcy Code (meaning 11 U.S.C §§ 101-1330, as amended), or (iv) any securities sold to any Third Party as part of an
Acquisition Proposal or Business Combination or voted for or against any such Acquisition Proposal or Business Combination. 
  
 (e) The provision of this Section 7.1 shall terminate and shall be of no further force and effect from and after the date that any of the
following is disclosed: (i) a Third Party independently or in concert with others commences or makes an Acquisition Proposal, or (ii) a Third Party shall have publicly announced an intention to seek a change of control of the board of directors of
the Company through the solicitation of proxies or otherwise, or (iii) the Company enters into a binding agreement with a Third Party with respect to an Acquisition Proposal or a Business Combination, or (iv) the Company publicly announces (by press
release or otherwise) that it is in discussions or negotiations with any Third Party with respect to a possible Acquisition Proposal or a Business Combination or that the Company is seeking any purchaser for a controlling interest in its business.
For the purposes of this Article VII, the term “controlling interest” shall mean the possession, through ownership of voting securities or otherwise, of the ability to direct the management and affairs of the Company and, without
limitation, shall be conclusively presumed to be present in the case of the direct or indirect ownership of a majority of the voting securities and/or equity interests of the Company, without precluding the existence of control in the case of the
ownership of a lesser amount of such securities. 
  
 Section 7.2
Agreement with Third Party. The provisions of Section 7.1 shall terminate and shall be of no further force and effect from and after the earliest to occur of any Acquisition Proposal, Business Combination or Change of Control. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 31 

 Section 7.3 Freedom to Vote. Nothing contained herein shall prevent the Purchaser or any of its
Affiliates from voting any equity securities owned by them in their sole discretion, and to that extent, seeking to influence the policies or affairs of the Company. 
  
 ARTICLE VIII 
  
 Registration of the Shares; Compliance with the Securities Act 
  
 Section 8.1 Demand Registration. (a) At any time after the Company becomes eligible to file a Registration Statement
on Form S-3 (or any successor form relating to secondary offerings), the Purchaser may request, in writing, the Company to effect the registration on Form S-3 (or such successor form) (“Demand Registration Statement”), of the Shares having
an aggregate value of at least three million dollars ($3,000,000) (based on the then current public market price). The rights granted by the Company under this Section 8.1 shall terminate on the
[************************************************************]. 
  
 (b) Upon receipt of such request for registration pursuant to this Section 8, the Company shall, as expeditiously as possible, cause to be filed with the Securities and Exchange Commission (the “SEC”) a
Demand Registration Statement providing for the registration under the Securities Act of the Shares which the Company has been requested to so register by the Purchaser, and shall use its best efforts to have such Demand Registration Statement
declared effective by the SEC as soon as practicable thereafter and to keep such Demand Registration Statement continuously effective for a period of time necessary following the date on which such Demand Registration Statement is declared effective
to permit the sale of all the Shares covered by such Demand Registration Statement or such shorter period which will terminate when all the Shares covered by such Demand Registration Statement have been sold pursuant thereto (including, if
necessary, by filing with the SEC a post-effective amendment or a supplement to the Demand Registration Statement or the related prospectus or any document incorporated therein by reference or by filing any other required document or otherwise
supplementing or amending the Demand Registration Statement, if required by the rules, regulations or instructions applicable to the registration form under the Securities Act used by the Company for such Demand Registration Statement or by the
Securities Act, any state securities or “blue sky” laws, or any other rules and regulations thereunder). 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 32 

 (c) A Demand Registration Statement shall be deemed not have become effective unless it
has been declared effective by the SEC; provided, however, that if, after it has been declared effective, the offering of any Shares pursuant to such Demand Registration Statement is interfered with by any stop order, injunction or other order or
requirement of the SEC or any other governmental agency or court (other than such stop order or injunction issued as a result of (i) the inclusion in such Demand Registration Statement of any information supplied to the Company for inclusion therein
by the Purchaser or (ii) the conduct of the offering by the Purchaser of its agents), such Demand Registration Statement will be deemed not to have become effective. 
  
 (d) The Purchaser shall be entitled to two Demand Registration Statements pursuant to Section 8.1(a). For
purposes of this Section 8.1(d), a registration shall not be counted until such time as a Registration Statement covering the applicable Shares has been declared effective by the SEC (subject to Section 8.1(c)), except that a registration shall
count if prior to the Registration Statement being declared effective the Purchasers withdraw their request for such registration by providing written notice to the Company and elect not to pay the registration expenses therefor pursuant to Section
8.3. Notwithstanding the foregoing, in the event the withdrawal by the Purchaser is based upon material adverse information related to the Company that is different from the information known or available to the Purchaser at the time of its request
for registration, or a material change in the business, assets, liabilities, condition (financial or otherwise) or prospects of the Company after the time of such request, then such registration shall not be counted for purposes of this Section
8.1(d) even though the Purchaser does not bear the Registration Expenses therefor. 
  
 (e) If the Purchaser intends to distribute the Shares covered by its request by means of an underwriting, it shall so advise the Company
as a part of its request made pursuant to Section 8.1(a). If the Company desires that any officers or directors of the Company holding securities of the Company be included in any registration for an underwritten offering requested pursuant to
Section 8.1(e) or if other holders of securities of the Company who are entitled, by contract with the Company, to have securities included in such a registration (the “Other 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 33 

 
Holders”) request such inclusion, the Company shall offer to include the securities of such officers, directors and Other Holders in such
registration and underwriting. The Company shall (together with the Purchasers, officers, directors and Other Holders proposing to distribute their securities through such underwriting) enter into an underwriting agreement in customary form
(including, without limitation, customary indemnification and contribution provisions on the part of the Company) with the underwriter. The Company may include securities for its own account in such registration if the underwriter so agrees and if
the number of Shares and other securities that would otherwise have been included in such registration and underwriting will not thereby be limited. Notwithstanding any other provision of this Section 8.1, if the underwriter determines that the
inclusion of the number Shares requested to be registered would have a material adverse effect on the price, timing or distribution of the Common Stock to be registered, the Company shall limit the number of Shares to be included in the registration
and underwriting to such number of Shares that the Purchaser is so advised can be sold without having such a material adverse effect. The Company shall so advise all holders of Shares requesting registration, and the number of shares that are
entitled to be included in the registration and underwriting shall be allocated in the following manner: first, all securities initially proposed to be sold pursuant to the Demand Registration Statement by the Purchaser; and second,
the number of Shares requested to be included in such registration by the Other Holders that the Purchaser is so advised can be sold without having a material adverse effect on the price, timing or distribution of the Common Stock, allocated pro
rata among the Other Holders requesting such registration on the basis of the number of Shares requested to be included by all such Other Holders. 
  
 (f) If at the time of any request to register Shares by the Purchaser pursuant to Section 8.1(a), the Company is engaged or has plans to
engage in a registered public offering or is engaged in any other material activity which, in the good faith and reasonable determination of the Company’s Board of Directors, would be materially adversely affected by the requested registration,
then the Company may at its option direct that such request be delayed for a period not in excess of ninety (90) days from the date of such request, such right to delay a request to be exercised by the Company not more than once in any twelve-month
period. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 34 

 (g) The Purchaser shall have the right to select the underwriter for an underwritten
offering requested pursuant to a Demand Registration Statement, subject to the Company’s approval, which will not be unreasonably withheld. 
  
 Section 8.2 “Piggyback” Registration. (a) If at any time the Company shall initiate a registration under the Securities Act of any of its
Common Stock for its own account or for the account of any stockholder of the Company that holds registration rights other than securities to be issued (i) in connection with the Company’s Initial Public Offering, (ii) in connection with any
acquisition of any entity or business for which shares are being registered on a Form S-4 or its then equivalent or (iii) pursuant to employee benefit plans (including registrations on Form S-8 or Form S-4 or their then equivalents), it shall send
to the Purchaser at least thirty (30) days’ prior written notice of such determination and, if within fifteen (15) days after the giving of such notice, the Purchaser shall so request in a writing received by the Company, the Company shall
include in such registration statement any or all of the Shares that the Purchaser requests to be registered therein; except that, if in connection with any underwritten public offering of Common Stock, the managing underwriter shall recommend that
the number of Shares to be included in such registration statement be limited because, in the underwriter’s reasonable judgment, such limitation is necessary to permit the public distribution of the shares of Common Stock being sold by the
Company without materially adversely affecting the price, timing or distribution of such Common Stock, then the number of Shares to be included in such registration statement shall be limited to the extent so recommended (which may be the complete
exclusion of such Shares); provided, however, that such limitation shall be proportionate (based on the number of shares to be included) to the limitation applied to any other holders of Common Stock with registration rights who request the
inclusion of shares in the registration statement. The rights granted by the Company under this Section 8.2 shall terminate on [************************************************************]. 
  
 (b) The Company will use commercially reasonable efforts to
maintain the effectiveness of any registration statement under which any of the Shares are being offered pursuant to this Section 8.2 until the earlier to occur of (i) the completion of the distribution pursuant to such registration statement and
(ii) one hundred eighty (180) days after the effectiveness of such registration statement; provided, however, that such 180-day period will be 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 35 

 
deemed to be suspended for so long as the Purchaser is prohibited from using such registration statement pursuant to the third sentence of this Section
8.2(b). The Company will promptly notify the Purchaser and each underwriter under such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event of
which the Company has knowledge as a result of which the prospectus contained in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing. The Purchaser agrees upon receipt of such notice forthwith to cease making offers and sales of Shares pursuant to such registration statement or
deliveries of the prospectus contained therein for any purpose until the Company has prepared and furnished such amendment or supplement to the prospectus as may be necessary so that, as thereafter delivered to a purchaser of Shares, such prospectus
shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. The Company shall
prepare and furnish such amendment or supplement to the prospectus to the Purchaser within 10 days after it has given notice to the Purchaser. The Purchaser further agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in this Section 8.2(b), the Purchaser will, if requested by the Company, deliver to the Company (at the Company’s expense) all copies, other than permanent file copies, then in the Purchaser’s possession of the
prospectus current at the time of receipt of such notice from the Company. 
  
 Section 8.3 Expenses of Registration. All costs and expenses incurred in connection with any registration pursuant to this Section 8, including, without limitation, all registration, filing and qualification
fees, printing expenses, fees and disbursements of counsel for the Company, and expenses of any special audits of the Company’s financial statements incidental to or required by such registration shall be paid by the Company; provided, however,
that the Company shall have no obligation to pay any stock transfer taxes, underwriters’ fees, discounts or commissions with respect to the sale of the Shares, or the fees and expenses of any counsel or advisor to the Purchaser. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 36 

 Section 8.4 Registration Procedures. Whenever the Purchaser has requested that any Shares be
included in a Company registration statement pursuant to this Section 8, the Company will use commercially reasonable efforts to effect the registration and sale of such Shares upon the terms and conditions hereof, and in connection with any such
request, the Company will: 
  
 (a) promptly
prepare and file with the SEC and furnish to the Purchaser copies of such registration statement as filed and each amendment and supplement thereto, as many copies of the prospectus included in such registration statement and any amendments or
supplements thereto as the Purchaser may reasonably request (including any preliminary prospectus contained therein and shall reflect in each such document such comments as the Purchaser may reasonably propose) and use its commercially reasonable
efforts to cause such registration statement to become effective and to keep the Purchaser advised in writing of the initiation and progress of proceedings regarding such registration; 
  
 (b) use its best efforts to ensure that (i) such registration statement and any amendment thereto and such
prospectus forming part thereof and any amendment or supplement thereto complies as to form in all material respects with the Securities Act, (ii) such registration statement and any amendment thereto does not, when it becomes effective, contain an
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements contained therein not misleading and (iii) any prospectus forming part of such registration statement, and any
amendment or supplement to such prospectus, does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements contained therein not misleading in light
of the circumstances in which they were made; provided, however, that the Company shall have no liability under clauses (ii) or (iii) of this paragraph (b) with respect to any such untrue statement or omission made therein in reliance upon and
conformity with information furnished to the Company by or on behalf of the Purchaser or any underwriter for inclusion therein; 
  
 (c) use its best efforts to register or qualify such Shares under the securities or blue sky laws of such jurisdictions as the managing
underwriter of such offering, if any, or the selling shareholders under such registration statement if there is no underwriter, may reasonably 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 37 

 
request and do any and all other acts and things which may be reasonably necessary or advisable to enable the Purchaser to consummate the disposition in such
jurisdictions of the Shares; provided, that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (c), or (ii) take any action that
would subject it to the service of process in suits other than relating to the sale of the Shares or any violation of state securities laws in any jurisdiction where it is not now so subject; 
  
 (d) use its best efforts to cause the Shares covered by such
registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the Purchaser or the underwriter or underwriters, if any, to consummate the disposition of such Shares subject
to the proviso contained in paragraph (c) above; 
  
 (e) promptly advise the Purchaser and, if requested by the Purchaser, promptly confirm such advice in writing: 
  
 (i) when such registration statement or prospectus and any amendment or supplement thereto has been filed with the SEC and when such
registration statement or any post-effective amendment thereto has become effective; 
  
 (ii) of the issuance by the SEC of any stop order suspending the effectiveness of such registration statement or the initiation or threat
of any actions or proceeding for that purpose; 
  
 (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of the Shares included in such registration statement for sale in any jurisdiction or the initiation
or threatened initiation of any action nor proceeding for such purpose; and 
  
 (iv) of the happening of any event that requires the amendment or supplementation of such registration statement or prospectus (or documents incorporated or deemed to be incorporated therein) so as to ensure that such
registration statement or prospectus is not misleading and does not contain any untrue statement of material fact or omit to state a 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 38 

 
material fact required to be stated therein or necessary to make the statements contained therein (in the case of the prospectus, in light of the
circumstances under which they were made) not misleading; 
  
 (f) deliver to the Purchaser, without charge, as many copies of the prospectus included in such registration statement, and any amendment or supplement thereto, as the Purchaser shall reasonably request; and subject
to Sections 8.1(d) and 8.2(b) hereof, the Company consents to the use of the prospectus or any amendment or supplement thereto by the Purchaser in connection with the offering and sale of the Shares covered by the prospectus or any amendment or
supplement thereto; 
  
 (g) otherwise comply with
all applicable rules and regulations of the SEC, and make generally available to its security holders, as soon as reasonably practicable but no later than 90 days after the end of each 12-month period, an earnings statement covering a period of 12
months after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 
  
 (h) cause all such Shares to be listed on each securities exchange or quotation system on which similar
securities issued by the Company are then listed; and 
  
 (i) take such other reasonable steps that are necessary or advisable to permit the sale of such Shares. 
  
 The Company may require the Purchaser to furnish to the Company such “blood letter” information regarding the distribution of the Shares as the
Company may from time to time reasonably request in writing which is customarily provided by selling stockholders in a public offering of securities. 
  
 Section 8.5 Indemnification. 
  
 (a) Indemnification by the Company. In connection with any registration statement in which the Purchaser includes Shares pursuant
to this Section 8, the Company will indemnify and hold harmless the Purchaser, together with each of the Purchaser’s officers, 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 39 

 
directors, shareholders, employees, agents and affiliates, each person who controls the Purchaser, each underwriter of the Shares, if any, each person who
controls such underwriter and each other person who participates in the offering of such Shares against all claims, losses, expenses, damages, reasonable attorneys’ fees, costs, expenses, liabilities (or actions in respect thereof), joint or
several (the “Damages”), insofar as such Damages arise out of or are based on any untrue statement or alleged untrue statement of a material fact contained in any such registration statement or prospectus, or in any amendment or supplement
thereof, or arise out of or are based on any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each such person for any
reasonable legal and any other expenses incurred in connection with investigating, defending or settling any such claim, loss, damage, liability or action; provided that the Company will not be liable in any such case to the extent that any such
claim, loss, damage or liability (or actions in respect thereof) arise out of or is based on any untrue statement or alleged untrue statement or omission or alleged omission made therein based upon written information furnished to the Company by the
Purchaser or underwriter, specifically for use therein which is not corrected in the final registration statement or prospectus or in an amendment or supplement thereto. 
  
 (b) Indemnification by the Purchaser. The Purchaser will, if any of the Purchaser’s Shares are
included in a registration pursuant hereto, indemnify the Company, each of its directors and officers, each underwriter, if any, of the Shares covered by such registration statement, and each person who controls the Company and any underwriter
within the meaning of the Securities Act, and each other holder of securities registered under the registration statement, each of its officers, directors and partners and each person controlling such holder, against all Damages insofar as such
Damages arise out of or are based on any untrue statement or alleged untrue statement of a material fact contained in any such registration statement or prospectus, or based on any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each such person for any reasonable legal and any other expenses incurred in connection with investigating, defending or settling any such
claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement or omission or alleged untrue statement or omission is made in such registration statement or prospectus in 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 40 

 
reliance upon and in conformity with written information furnished to the Company by the Purchaser specifically for use therein which is not corrected in the
final registration statement or prospectus or in an amendment or supplement thereto. 
  
 (c) Contribution. In order to provide for just and equitable contribution in any case in which any person exercising rights under
this Section 8.5 makes a claim for indemnification, but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact that this Section 8.5 provides for indemnification in such case, then, the Company and the Purchaser will contribute to the aggregate Damages to which they may be subject
(after contribution from others) in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and of the Purchaser on the other in connection with the statements or omissions which resulted in such Damages, as
well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Purchaser on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or by the Purchaser on the other, and each party’s relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission; provided, however, that, in any such case, (i) the Purchaser will not be required to contribute for all Damages an aggregate of any amount in excess of the proceeds received from the
public offering of all Shares offered by it pursuant to such registration statement; and (ii) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from any person or entity who was not guilty of such fraudulent misrepresentation. 
  
 (d) Indemnification Procedures. Each party entitled to indemnification under this Section 8.5 (the “Indemnified Party”)
shall give written notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the
Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party who shall conduct the defense of such claim or 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 41 

 
litigation shall be approved by the Indemnified Party (which approval shall not be unreasonably withheld), and the Indemnified Party may participate in such
defense at such party’s expense; provided, further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations hereunder, except to the extent such failure resulted in
actual detriment to the Indemnifying Party. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such claim or litigation; provided, however, that the Indemnifying Party will not consent to the
entry of any judgment or enter into any settlement (other than for the payment of money only) without the consent of the Indemnified Party (which consent shall not be unreasonably withheld). An Indemnifying Party who is not entitled to, or elects
not to, assume the defense of the claim, will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such Indemnifying Party with respect to such claim, unless in the reasonable judgment of any
Indemnified Party a conflict of interest may exist between such Indemnified Party and any other such Indemnified Parties with respect to such claim, in which event the Indemnifying Party shall be obligated to pay the fees and expenses of such
additional counsel or counsels. 
  
 Section 8.6 Conditions to
Registration Obligations. The Company shall not be obligated to effect the registration of the Purchaser’s Shares pursuant to this Section 8 unless the Purchaser consents to such reasonable conditions imposed by the Company as the Company
shall determine with the advice of counsel to be required by law, including, without limitation: 
  
 (a) conditions requiring the Purchaser to comply with all prospectus delivery requirements of the Securities Act and with all
anti-stabilization, anti-manipulation and similar provisions of Section 10 of the Exchange Act, and any rules issued thereunder by the SEC, and to furnish to the Company information about sales made in such public offering; 
  
 (b) conditions prohibiting the Purchaser upon receipt of
telegraphic or written notice required by law from the Company from effecting sales of Shares until further notice; and 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 42 

 (c) conditions requiring that at the end of the period during which the Company is
obligated to keep the registration statement effective under this Section 8, the Purchaser shall discontinue sales of Shares pursuant to such registration statement upon receipt of notice from the Company of its intention to remove from registration
the securities covered by such registration statement that remain unsold, and requiring the Purchaser to notify the Company of the number of Shares registered that remain unsold promptly upon receipt of notice from the Company. 
  
 In addition, the Company shall not be obligated to effect a registration of
the Purchaser’s Shares pursuant to this Section 8 unless the Purchaser consents to reasonable conditions requested by the Company requiring the Purchaser to enter into an underwriting agreement with customary terms and conditions and in form
and substance consistent with such agreement as entered into by all other applicable selling shareholders. 
  
 ARTICLE IX 
  
 Rule 144 Reporting 
  
 Section 9.1 Rule 144 Reporting. 
  
 With a
view to making available the benefits of certain rules and regulations of the SEC, which may at any time permit the sale of the Shares to the public without registration, the Company agrees to: 
  
 (a) make and keep public information available, as those
terms are understood and defined in Rule 144 under the Securities Act; 
  
 (b) use its best efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; and 
  
 (c) furnish to any holder of Shares forthwith upon request a
written statement by the Company as to its compliance with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and
documents so filed by the Company as such holder may reasonably request in availing itself of any rule or regulation of the SEC allowing such holder to sell any Shares without registration. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 43 

  
 ARTICLE X

  
 Miscellaneous 
  
 Section 10.1 [Intentionally left blank.] 
  
 Section 10.2 Enforcement. (a) The Purchaser and the Company
acknowledge and agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that monetary damages would be an inadequate remedy
therefor. Accordingly, either party will be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically its provisions in any court of the United States or any state having jurisdiction, this being
in addition to any other remedy to which the Company may be entitled at law or in equity. 
  
 (b) No failure or delay on the part of the Purchaser or the Company in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 
  
 Section 10.3 Entire Agreement. This Agreement, together with the
applicable provisions of the License Agreement and the S&E Agreement, constitute the entire understanding of the parties with respect to the transactions contemplated hereby. This Agreement may be amended only by an agreement in writing executed
by all the parties hereto and their respective successors. 
  
 Section 10.4 Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, the remaining provisions shall remain in full force and effect. It is
declared to be the intention of the parties that they would have executed the remaining provisions without including any that may be declared unenforceable. 
  
 Section 10.5 Headings. Descriptive headings are for convenience only and will not control or affect the meaning or construction of any provision of
this Agreement. 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 44 

 Section 10.6 Counterparts. This Agreement may be executed in one or more counterparts, and each of
which shall constitute an original instrument, but all of which, when taken together, shall constitute one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties.

  
 Section 10.7 Notices. All notices, consents, requests,
instructions, approvals and other communications provided for in this Agreement will be validly given or made, if in writing and delivered personally, by telecopy or sent by registered mail postage paid: 
  

			
	if to the Company:	  	Coley Pharmaceutical Group, Inc.
	 	  	93 Worcester Road, Suite 101
	 	  	Wellesley, MA 02481
	 	  	Attention: President
		
	with copies to:	  	Coley Pharmaceutical Group, Inc.
	 	  	93 Worcester Road, Suite 101
	 	  	Wellesley, MA 02481
	 	  	Attention: Charles E. Yon
	 	  	Vice President and General Counsel
	 	  	Fax: (781) 431-6403
		
	 	  	William T. Whelan, Esq.
	 	  	Mintz, Levin, Cohn, Ferris,
	 	  	Glovsky and Popeo, PC.
	 	  	One Financial Center
	 	  	Boston, MA 02111
	 	  	Tel: (617) 542-6000
	 	  	Fax: (617) 542-2241
		
	if to the Purchaser:	  	Pfizer Inc.
	 	  	235 East 42nd Street
	 	  	New York, New York 10017-5755
	 	  	Attention: President, Pfizer Human Health
	 	  	Fax: (212) 808-8652
		
	with copies to:	  	Pfizer Inc.
	 	  	235 East 42nd Street
	 	  	New York, New York 10017-5755
	 	  	Attention: Executive Vice President and General Counsel
	 	  	Fax: (212) 808-8924

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 45 

 or to such other address or telecopy number as any party may, from time to time, designate in a written notice given in a
like manner. Notice by telecopy shall be deemed delivered on the day telephone confirmation of receipt is given. 
  
 Section 10.8 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties,
including affiliates of the Purchaser; provided, however that this Agreement shall not be binding upon any purchaser of the Shares from the Purchaser or an Affiliate of the Purchaser in a transaction effected on a public trading market or pursuant
to a public offering. The rights granted to the Purchaser or any Affiliate hereunder may be transferred by the Purchaser or any Affiliate (i) with the prior written consent of the Company, or (ii) without the prior written consent of the Company in
connection with the transfer of all or a portion of the Shares to Affiliates of the Purchaser; provided, however, that each transferee of rights shall be subject to the same obligations as the Purchaser, and provided, further, that if any such
transferees are Affiliates of the Purchaser, one entity (which may be the Purchaser) shall be designated by the Purchaser to act on behalf of the Purchaser and such Affiliates to give and receive all notices and other communications pursuant to this
Agreement. 
  
 Section 10.9 Term. The term of this
Agreement shall commence on the date first referred to above and shall terminate upon the earliest to occur of the following: (i) a Change of Control, or (ii) the termination of the License Agreement, in accordance with the provisions thereof, or
(iii) the occurrence of a Material Default (as defined in the License Agreement) as a result of any breach of Section 10 of the License Agreement by the Company or any of its Affiliates. 
  
 Section 10.10 Governing Law. This Agreement will be governed by and construed and enforced in accordance with the
laws of the State of Delaware, without giving effect to the conflict of laws principles thereof. 
  
 [Remainder of page intentionally blank] 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 46 

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

					
	PFIZER INC.
		
	By:	 	 /s/ Lisa Ricciardi

	 	 	 Name:
	 	 Lisa Ricciardi

	 	 	 Title:
	 	 Sr. Vice President

	
	COLEY PHARMACEUTICAL GROUP, INC
		
	By:	 	 /s/ Robert L. Bratzler

	 	 	 Name:
	 	 Robert L. Bratzler

	 	 	 Title:
	 	 President and CEO

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act. 
  
 47MASTER LEASE AGREEMENT DATED 11/13/01

 Exhibit 10.32 
  
 MASTER LEASE AGREEMENT 
 (Quasi) 
 dated as of November 13, 2001 (“Agreement”) 
  
 THIS AGREEMENT is between General Electric Capital Corporation
(together with its successors and assigns, if any, “Lessor”) and Coley Pharmaceutical Group, Inc. (“Lessee”). Lessor has an office at 401 Merritt 7 2nd Floor, Norwalk, CT 06856. Lessee is a corporation
organized and existing under the laws of the state of Delaware. Lessee’s mailing address and chief place of business is 93 Worchester Street, Suite 101, Wellesley, MA 02481. This Agreement contains the general terms that apply to the leasing of
Equipment from Lessor to Lessee. Additional terms that apply to the Equipment (term, rent, options, etc.) shall be contained on a schedule (“Schedule”). 
  
 1. LEASING: 
  
 (a) Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, the equipment and other property (“Equipment”) described in
any Schedule signed by both parties. 
  
 (b) Lessor shall purchase
Equipment from the manufacturer or supplier (“Supplier”) and lease it to Lessee if on or before the Last Delivery Date (specified in the Schedule) Lessor receives (i) a Schedule for the Equipment, (ii) evidence of insurance which
complies with the requirements of Section 8, and (iii) such other documents as Lessor may reasonably request. Each of the documents required above must be in form and substance satisfactory to Lessor. Lessor hereby appoints Lessee its agent for
inspection and acceptance of the Equipment from the Supplier. Once the Schedule is signed, the Lessee may not cancel the Schedule. 
  
 2. TERM, RENT AND PAYMENT: 
  
 (a) The rent payable for the Equipment and Lessee’s right to use the Equipment shall begin on the earlier of (i) the date when the Lessee signs the
Schedule and accepts the Equipment or (ii) when Lessee has accepted the Equipment under a Certificate of Acceptance (“Lease Commencement Date”). The term of this Agreement shall be the period specified in the applicable Schedule.
The word “term” shall include all basic and any renewal terms. 
  
 (b) Lessee shall pay rent to Lessor at its address stated above, except as otherwise directed by Lessor. Rent payments shall be in the amount set forth in, and due as stated in the applicable Schedule. If any Advance
Rent (as stated in the Schedule) is payable, it shall be due when the Lessee signs the Schedule Advance Rent shall be applied to the first rent payment and the balance, if any, to the final rent payment(s) under such Schedule. In no event shall any
Advance Rent or any other rent payments be refunded to Lessee. If rent is not paid within ten (10) days of its due date. Lessee agrees to pay a late charge of five cents ($.05) per dollar on, and in addition to, the amount of such rent but not
exceeding the lawful maximum, if any. 
  
 (c) Lessor shall not
disturb Lessee’s quiet enjoyment of the Equipment during the term of the Agreement unless a default has occurred and is continuing under this Agreement. 
  
 3. TAXES: 
  
 (a) If permitted by law, Lessee shall report and pay promptly all taxes, fees and assessments due, imposed, assessed or levied against any Equipment (or
purchase, ownership, delivery, leasing, possession, use or operation thereof), this Agreement (or any rents or receipts hereunder), any Schedule, Lessor or Lessee by any governmental entity or taxing authority during or related to the term of this
Agreement, including, without limitation, all license and registration fees, and all sales, use, personal property, excise, gross receipts, franchise, stamp or other taxes, imposts, duties and charges, together with any penalties, fines or interest
thereon (collectively “Taxes”). Lessee shall have no liability for Taxes imposed by the United States of America or any State or political subdivision thereof which are on or measured by the net income of Lessor. Lessee shall
promptly reimburse Lessor (on an after tax basis) for any Taxes charged to or assessed against Lessor. Lessee shall send Lessor a copy of each report or return and evidence of Lessees payment of Taxes upon request. 
  
 (b) Lessee’s obligations, and Lessor’s rights and priviledges,
contained in this Section 3 shall survive the expiration or other termination of this Agreement. 
  
 4. REPORTS: 
  
 (a) If any
tax or other lien shall attach to any Equipment, Lessee will notify Lessor in writing, within ten (10) days after Lessee becomes aware of the tax or lien. The notice shall include the full particulars of the tax or lien and the location of such
Equipment on the date of the notice. 
  
 (b) Lessee will deliver
to Lessor Lessees complete financial statements, certified by a recognized firm of certified public accountants, within ninety (90) days of the close of each fiscal year of Lessee. If Lessor requests, Lessee will deliver to Lessor copies of
Lessee’s quarterly financial report certified by the chief financial officer of Lessee, within ninety (90) days of the close of each fiscal quarter of Lessee. Lessee will deliver to Lessor all Forms 10-K and 10Q, if any, filed with the
Securities and Exchange Commission within thirty (30) days after the date on which they are filed. 
  
 (c) Lessor may inspect any Equipment during normal business hours after giving Lessee reasonable prior notice. 
  
 (d) Lessee will keep the Equipment at the Equipment Location (specified in
the applicable Schedule) and will give Lessor prior written notice of any relocation of Equipment. If Lessor requests, Lessee will promptly notify Lessor in writing of the location of any Equipment. 
  
 (e) If any Equipment is lost or damaged (where the estimated repair costs
would exceed the greater of ten percent (10%) of the original Equipment cost or ten thousand and 00/100 dollars ($10,000)), or is otherwise involved in an accident causing personal injury or property damage. Lessee will promptly and fully report the
event to Lessor in writing. 
  

 (f) Lessee will furnish a certificate of an authorized officer of Lessee stating that he has reviewed the
activities of Lessee and that, to the best of his knowledge, there exists no default or event which with notice or lapse of time (or both) would become such a default within thirty (30) days after any request by Lessor. 
  
 (g) Lessee will promptly notify Lessor of any change in Lessee’s state
of incorporation or organization. 
  
 5. DELIVERY, USE AND OPERATION:

  
 (a) All Equipment shall be shipped directly from the
Supplier to Lessee. 
  
 (b) Lessee agrees that the Equipment will
be used by Lessee solely in the conduct of its business and in a manner complying with all applicable laws, regulations and insurance policies, and Lessee shall not discontinue use of the Equipment. 
  
 (c) Lessee will not move any equipment from the location specified on the
Schedule, without the prior written consent of Lessor. 
  
 (d)
Lessee will keep the Equipment free and clear of all liens and encumbrances other than those which result from acts of Lessor. 
  
 (e) Lessor shall not disturb Lessees quite enjoyment of the Equipment during the term of the Agreement unless a default has occurred and is continuing
under this Agreement. 
  
 6. MAINTENANCE: 
  
 (a) Lessee will, at its sole expense, maintain each unit of Equipment in
good operating order and repair, normal wear and tear excepted. The Lessee shall also maintain the Equipment in accordance with manufacturers recommendations. Lessee shall make all alterations or modifications required to comply with any applicable
law, rule or regulation during the term of this Agreement. If Lessor requests, Lessee shall affix plates, tags or other identifying labels showing ownership thereof by Lessee and Lessor’s security interest therein. The tags or labels shall be
placed in a prominent position on each unit of Equipment. 
  
 (b)
Lessee will not attach or install anything on the Equipment that will impair the originally intended function or use of such Equipment without the prior written consent of Lessor. All additions, parts, supplies, accessories, and equipment
(“Additions”) furnished or attached to any Equipment that are not readily removable shall become subject to the lien of Lessor. All Additions shall be made only in compliance with applicable law. Lessee will not attach or install
any Equipment to or in any other personal or real property without the prior written consent of Lessor. 
  
 7. STIPULATED LOSS VALUE: If for any reason any unit of Equipment becomes worn out, lost, stolen, destroyed, irreparably damaged or unusable (“Casualty Occurrences”) Lessee shall promptly and
fully notify Lessor in writing. Lessee shall pay Lessor the sum of (i) the Stipulated Loss Value (see Schedule) of the affected unit determined as of the rent payment date prior to the Casualty Occurrence; and (ii) all rent and other amounts which
are then due under this Agreement on the Payment Date (defined below) for the affected unit. The Payment Date shall be the next rent payment date after the Casualty Occurrence. Upon payment of all sums due hereunder, the term of this lease as to
such unit shall terminate. 
  
 8. INSURANCE: 
  
 (a) Lessee shall bear the entire risk of any loss, theft, damage to, or
destruction of, any unit of Equipment from any cause whatsoever from the time the Equipment is shipped to Lessee. 
  
 (b) Lessee agrees, at its own expense, to keep all Equipment insured for such amounts and against such hazards as Lessor may reasonably require. All such
policies shall be with companies, and on terms, reasonably satisfactory to Lessor. The insurance shall include coverage for damage to or loss of the Equipment, liability for personal injuries, death or property damage. Lessor shall be named as
additional insured with a loss payable clause in favor of Lessor, as its interest may appear, irrespective of any breach of warranty or other act or omission of Lessee. The insurance shall provide for liability coverage in an amount equal to at
least ONE MILLION U.S. DOLLARS ($1,000,000.00) total liability per occurrence, unless otherwise stated in any Schedule. The casualty/property damage coverage shall be in an amount equal to the higher of the Stipulated Loss value or the full
replacement cost of the Equipment. No insurance shall be subject to any co-insurance clause. The insurance policies shall provide that the insurance may not be altered or canceled by the insurer until after thirty (30) days written notice to Lessor.
Lessee agrees to deliver to Lessor evidence of insurance reasonably satisfactory to Lessor. 
  
 (c) Lessee hereby appoints Lessor as Lessee’s attorney-in-fact to make proof of loss and claim for insurance, and to make adjustments with insurers and to receive payment of and execute or endorse all documents,
checks or drafts in connection with insurance payments. Lessor shall not act as Lessees attorney-in-fact unless Lessee is in default. Lessee shall pay any reasonable expenses of Lessor in adjusting or collecting insurance. Lessee will not make
adjustments with insurers except with respect to claims for damage to any unit of Equipment where the repair costs are less than the lesser of ten percent (10%) of the original Equipment cost or ten thousand and 00/100 dollars ($10,000). Lessor may,
at its option, apply proceeds of insurance, in whole or in part, to (i) repair or replace Equipment or any portion thereof, or (ii) satisfy any obligation of Lessee to Lessor under this Agreement. 
  
 9. RETURN OF EQUIPMENT: 
  
 (a) At the expiration or termination of this Agreement or any Schedule, Lessee shall perform any testing and repairs
required to place the units of Equipment in the same condition and appearance as when received by Lessee (reasonable wear and tear excepted) and in good working order for the original intended purpose of the Equipment. If required the units of
Equipment shall be deinstalled, disassembled and crated by an authorized manufacturer’s representative or such other service person as is reasonably satisfactory to Lessor. Lessee shall remove installed markings that are not necessary for the
operation, maintenance or repair of the Equipment. All Equipment will be cleaned, cosmetically acceptable, and in such condition as to be immediately installed into use in a similar environment for which the Equipment was originally intended to be
used. All waste material and fluid must be removed from the Equipment and disposed of in accordance with then current waste disposal laws. Lessee shall return the units of Equipment to a location within the 

  

 
continental United States as Lessor shall direct Lessee shall obtain and pay for a policy of transit insurance for the redelivery period in an amount equal
to the replacement value of the Equipment. The transit insurance must name Lessor as the loss payee. The Lessee shall pay for all costs to comply with this section (a). 
  
 (b) Until Lessee has fully complied with the requirements of Section 9(a) above, Lessee’s rent payment obligation and
all other obligations under this Agreement shall continue from month to month notwithstanding any expiration or termination of the lease term. Lessor may terminate the Lessee’s right to use the Equipment upon ten (10) days notice to Lessee.

  
 (c) Lessee shall provide to Lessor a detailed inventory of all
components of the Equipment including model and serial numbers. Lessee shall also provide an up-to-date copy of all other documentation pertaining to the Equipment. All service manuals, blue prints, process flow diagrams, operating manuals,
inventory and maintenance records shall be given to Lessor at least ninety (90) days and not more than one hundred twenty (120) days prior to lease termination. 
  

(d) Lessee shall make the Equipment available for on-site operational inspections by potential purchasers at least one hundred twenty (120) days prior
to and continuing up to lease termination. Lessor shall provide Lessee with reasonable notice prior to any inspection. Lessee shall provide personnel, power and other requirements necessary to demonstrate electrical, hydraulic and mechanical systems
for each item of Equipment. 
  
 10. DEFAULT AN REMEDIES: 
  
 (a) Lessor may in writing declare this Agreement in default if: (i) Lessee
breaches its obligation to pay rent or any other sum when due and fails to cure the breach within ten (10) days; (ii) Lessee breaches any of its insurance obligations under Section 8; (iii) Lessee breaches any of its other obligations and fails to
cure that breach within thirty (30) days after written notice from Lessor; (iv) any representation or warranty made by Lessee in connection with this Agreement shall be false or misleading in any material respect; (v) Lessee or any guarantor or
other obligor for the Lessee’s obligations hereunder (“Guarantor”) becomes insolvent or ceases to do business as a going concern; (vi) any Equipment is illegally used; (vii) if Lessee or any Guarantor is a natural person, any
death or incompetency of Lessee or such Guarantor; or (viii) a petition is filed by or against Lessee or any Guarantor under any bankruptcy or insolvency laws and in the event of an involuntary petition, the petition is not dismissed within
forty-five (45) days of the filing date. The default declaration shall apply to all Schedules unless specifically excepted by Lessor. 
  
 (b) After a default, at the request of Lessor, Lessee shall comply with the provisions of Section 9(a). Lessee hereby authorizes Lessor to peacefully
enter any premises where any Equipment may be and take possession of the Equipment. Lessee shall immediately pay to Lessor without further demand as liquidated damages for loss of a bargain and not as a penalty, the Stipulated Loss Value of the
Equipment (calculated as of the rent payment date prior to the declaration of default), and all rents and other sums then due under this Agreement and all Schedules. Lessor may terminate this Agreement as to any or all of the Equipment. A
termination shall occur only upon written notice by Lessor to Lessee and only as to the units of Equipment specified in any such notice. Lessor may, but shall not be required to, sell Equipment at private or public sale, in bulk or in parcels, with
or without notice, and without having the Equipment present at the place of sale. Lessor may also, but shall not be required to, lease, otherwise dispose of or keep idle all or part of the Equipment. Lessor may use Lessee’s premises for a
reasonable period of time for any or all of the purposes stated above without liability for rent, costs, damages or otherwise. The proceeds of sale, lease or other disposition, if any, shall be applied in the following order of priorities: (i) to
pay all of Lessor’s costs, charges and expenses incurred in taking, removing, holding, repairing and selling, leasing or otherwise disposing of Equipment; then, (ii) to the extent not previously paid by Lessee, to pay Lessor all sums due from
Lessee under this Agreement; then (iii) to reimburse to Lessee any sums previously paid by Lessee as liquidated damages; and then (iv) to Lessee, if there exists any surplus. Lessee shall immediately pay any deficiency in (i) and (ii) above.

  
 (c) The foregoing remedies are cumulative, and any or all
thereof may be exercised instead of or in addition to each other or any remedies at law, in equity, or under statute. Lessee waives notice of sale or other disposition (and the time and place thereof), and the manner and place of any advertising.
Lessee shall pay Lessor’s actual attorney’s fees incurred in connection with the enforcement, assertion, defense or preservation of Lessor’s rights and remedies under this Agreement, or if prohibited by law, such lesser sum as may be
permitted. Waiver of any default shall not be a waiver of any other or subsequent default. 
  
 (d) Any default under the terms of this or any other agreement between Lessor and Lessee may be declared by Lessor a default under this and any such other agreement. 
  
 11. ASSIGNMENT: LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET ANY
EQUIPMENT OR THE INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR. Lessor may, without the consent of Lessee, assign this Agreement, any Schedule or the right to enter into a Schedule. Lessee agrees that if Lessee
receives written notice of an assignment from Lessor, Lessee will pay all rent and all other amounts payable under any assigned Schedule to such assignee or as instructed by Lessor. Lessee also agrees to confirm in writing receipt of the notice of
assignment as may be reasonably requested by assignee. Lessee hereby waives and agrees not to assert against any such assignee any defense, set-off, recoupment claim or counterclaim which Lessee has or may at any time have against Lessor for any
reason whatsoever. 
  
 12. NET LEASE: Lessee is unconditionally obligated
to pay all rent and other amounts due for the entire lease term no matter what happens, even if the Equipment is damaged or destroyed, if it is defective or if Lessee no longer can use it. Lessee is not entitled to reduce or set-off against rent or
other amounts due to Lessor or to anyone to whom Lessor assigns this Agreement or any Schedule whether Lessees claim arises out of this Agreement, any Schedule, any statement by Lessor, Lessors liability or any manufacturers liability, strict
liability, negligence or otherwise. 
  

 13. INDEMNIFICATION: 
  
 (a) Lessee hereby agrees to indemnify Lessor, its agents, employees, successors and assigns (on an after tax basis) from and against any and all losses,
damages, penalties, injuries, claims, actions and suits, including legal expenses, of whatsoever kind and nature arising out of or relating to the Equipment or this Agreement, except to the extent the losses, damages, penalties, injuries, claims,
actions, suits or expenses result from Lessors gross negligence or willful misconduct (“Claims”). This indemnity shall include, but is not limited to, Lessor’s strict liability in tort and Claims, arising out of (i) the
selection, manufacture, purchase, acceptance or rejection of Equipment, the ownership of Equipment during the term of this Agreement, and the delivery, lease, possession, maintenance, uses, condition, return or operation of Equipment (including,
without limitation, latent and other defects, whether or not discoverable by Lessor or Lessee and any claim for patent, trademark or copyright infringement or environmental damage) or (ii) the condition of Equipment sold or disposed of after use by
Lessee, any sublessee or employees of Lessee. Lessee shall, upon request, defend any actions based on, or arising out of, any of the foregoing. 
  
 (b) All of Lessor’s rights, privileges and indemnities contained in this Section 13 shall survive the expiration or other termination of this
Agreement. The rights, privileges and indemnities contained herein are expressly made for the benefit of, and shall be enforceable by Lessor, its successors and assigns. 
  
 14. DISCLAIMER: LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT ANY ASSISTANCE FROM LESSOR, ITS AGENTS OR EMPLOYEES.
LESSOR DOES NOT MAKE, HAS NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH RESPECT TO THE EQUIPMENT LEASED UNDER THIS AGREEMENT OR ANY COMPONENT THEREOF, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS, QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE, USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE. All
such risks, as between Lessor and Lessee, are to be borne by Lessee. Without limiting the foregoing, Lessor shall have no responsibility or liability to Lessee or any other person with respect to any of the following: (i) any liability, loss or
damage caused or alleged to be caused directly or indirectly by any Equipment, any inadequacy thereof, any deficiency or defect (latent or otherwise) of the Equipment, or any other circumstance in connection with the Equipment; (ii) the use,
operation or performance of any Equipment or any risks relating to it; (iii) any interruption of service, loss of business or anticipated profits or consequential damages; or (iv) the delivery, operation, servicing, maintenance, repair, improvement
or replacement of any Equipment. If, and so long as, no default exists under this Agreement, Lessee shall be, and hereby is, authorized during the term of this Agreement to assert and enforce, whatever claims and rights Lessor may have against any
Supplier of the Equipment at Lessee’s sole cost and expense, in the name of and for the account of Lessor and/or Lessee, as their interests may appear. 
  
 15. REPRESENTATIONS AND WARRANTIES OF LESSEE: Lessee makes each of the following representations and warranties to Lessor on the date hereof and on the date of
execution of each Schedule: 
  
 (a) Lessee has adequate power and
capacity to enter into, and perform under, this Agreement and all related documents (together, the “Documents”) Lessee is duly qualified to do business wherever necessary to carry on its present business and operations, including
the jurisdiction(s) where the Equipment is or is to be located. 
  
 (b) The Documents have been duly authorized, executed and delivered by Lessee and constitute valid, legal and binding agreements, enforceable in accordance with their terms, except to the extent that the enforcement of remedies may be
limited under applicable bankruptcy and insolvency laws. 
  
 (c)
No approval, consent or withholding of objections is required from any governmental authority or entity with respect to the entry into or performance by Lessee of the Documents except such as have already been obtained. 
  
 (d) The entry into and performance by Lessee of the Documents will not: (i)
violate any judgment, order, law or regulation applicable to Lessee or any provision of Lessee’s Certificate of Incorporation or bylaws; or (ii) result in any breach of, constitute a default under or result in the creation of any lien, charge,
security interest or other encumbrance upon any Equipment pursuant to any indenture, mortgage, deed of trust, bank loan or credit agreement or other instrument (other than this Agreement) to which Lessee is a party. 
  
 (e) There are no suits or proceedings pending or threatened in court or
before any commission, board or other administrative agency against or affecting Lessee, which if decided against Lessee will have a material adverse effect on the ability of Lessee to fulfill its obligations under this Agreement. 
  
 (f) The Equipment accepted under any Certificate of Acceptance is and will
remain tangible personal property. 
  
 (g) Each financial
statement delivered to Lessor has been prepared in accordance with generally accepted accounting principles consistently applied. Since the date of the most recent financial statement, there has been no material adverse change. 
  
 (h) Lessee’s exact legal name is as set forth in the first sentence of
this Agreement and Lessee is and will be at all times validly existing and in good standing under the laws of the State of its incorporation (specified in the first sentence of this Agreement). 
  
 (i) The Equipment will at all times be used for commercial or business
purposes. 
  
 16. OWNERSHIP FOR TAX PURPOSES, GRANT OF SECURITY INTEREST; USURY
SAVINGS: 
  
 (a) For income tax purposes, the parties hereto
agree that it is their mutual intention that Lessee shall be considered the owner of the Equipment. Accordingly, Lessor agrees (i) to treat Lessee as the owner of the Equipment on its federal income tax return, (ii) not to take actions or positions
inconsistent with such treatment on or with respect to its federal income tax return, and (iii) not to claim any tax benefits available to an owner of the Equipment on or with respect to its federal income tax return. The foregoing undertakings by
Lessor shall not be violated by Lessor’s taking a tax position inconsistent with the foregoing sentence to the extent such a position is required by law or is taken through inadvertence so long as such inadvertent tax position is reversed by
Lessor promptly upon its discovery. Lessor shall in no event be liable to Lessee if Lessee fails to secure any of the tax benefits available to the owner of the Equipment. 
  
 (b) Lessee hereby grants to Lessor a first security interest in the Equipment, together with all additions, attachments,
accessions, accessories and 

  

 
accessions thereto whether or not furnished by the Supplier of the Equipment and any and all substitutions replacements or exchanges therefor, and any and
all insurance and/or other proceeds of the property in and against which a security interest is granted hereunder. Notwithstanding anything to the contrary contained elsewhere in this Agreement, to the extent that Lessor asserts a purchase money
security interest in any items of Equipment (“PMSI Equipment”): (i) the PMSI Equipment shall secure only those sums which have been advanced by Lessor for the purchase of the PMSI Equipment, or the acquisition of rights therein, or
the use thereof (the “PMSI Indebtedness”), and (ii) no other Equipment shall secure the PMSI Indebtedness. 
  
 (c) It is the intention of the parties hereto to comply with any applicable usury laws to the extent that any Schedule is determined to be subject to such
laws; accordingly, it is agreed that, notwithstanding any provision to the contrary in any Schedule or this Agreement, in no event shall any Schedule require the payment or permit the collection of interest in excess of the maximum amount permitted
by applicable law. If any such excess interest is contracted for, charged or received under any Schedule or this Agreement, or in the event that all of the principal balance shall be prepaid, so that under any of such circumstances the amount of
interest contracted for, charged or received under any Schedule or this Agreement shall exceed the maximum amount of interest permitted by applicable law, then in such event (i) the provisions of this paragraph shall govern and control, (ii) neither
Lessee nor any other person or entity now or hereafter liable for the payment hereof shall be obligated to pay the amount of such interest to the extent that it is in excess of the maximum amount of interest permitted by applicable law, (iii) any
such excess which may have been collected shall be either applied as a credit against the then unpaid principal balance or refunded to Lessee, at the option of the Lessor, and (iv) the effective rate of interest shall be automatically reduced to the
maximum lawful contract rate allowed under applicable law as now or hereafter construed by the courts having jurisdiction thereof. It is further agreed that without limitation of the foregoing, all calculations of the rate of interest contracted
for, charged or received under any Schedule or this Agreement which are made for the purpose of determining whether such rate exceeds the maximum lawful contract rate, shall be made, to the extent permitted by applicable law, by amortizing,
prorating, allocating and spreading in equal parts during the period of the full stated term of the indebtedness evidenced hereby, all interest at any time contracted for, charged or received from Lessee or otherwise by Lessor in connection with
such indebtedness; provided, however, that if any applicable state law is amended or the law of the United States of America preempts any applicable state law, so that it becomes lawful for Lessor to receive a greater interest per annum rate than is
presently allowed, the Lessee agrees that, on the effective date of such amendment or preemption, as the case may be, the lawful maximum hereunder shall be increased to the maximum interest per annum rate allowed by the amended state law or the law
of the United States of America. 
  
 17. EARLY TERMINATION: 
  
 (a) On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this Agreement as to all (but not less than all) of the Equipment on such Schedule as of a rent payment date (“Termination Date”). Lessee must give Lessor at
least ninety (90) days prior written notice of the termination. 
  
 (b) Lessee shall, and Lessor may, solicit cash bids for the Equipment on an AS IS, WHERE IS BASIS without recourse to or warranty from Lessor, express or implied (“AS IS BASIS”). Prior to the Termination Date, Lessee
shall (i) certify to Lessor any bids received by Lessee and (ii) pay to Lessor (A) the Termination Value (calculated as of the rent due on the Termination Date) for the Equipment, and (B) all rent and other sums due and unpaid as of the Termination
Date. 
  
 (c) If all amounts due hereunder have been paid on the
Termination Date, Lessor shall (i) sell the Equipment on an AS IS BASIS for cash to the highest bidder and (ii) refund the proceeds of such sale (net of any related expenses) to Lessee up to the amount or the Termination Value. If such sale is not
consummated, no termination shall occur and Lessor shall refund the Termination Value (less any expenses incurred by Lessor) to Lessee. 
  
 (d) Notwithstanding the foregoing, Lessor may elect by written notice, at any time prior to the Termination Date, not to sell the Equipment. In that
event, on the Termination Date Lessee shall (i) return the Equipment (in accordance with Section 9) and (ii) pay to Lessor all amounts required under Section 17(b) less the amount of the highest bid certified by Lessee to Lessor. 
  
 18. EARLY PURCHASE OPTION: 
  
 (a) Lessee may purchase on an AS IS BASIS all (but not less than all) of the
Equipment on any Schedule on any Rent Payment Date after the First Termination Date specified in the applicable Schedule but prior to the last Rent Payment Date of such Schedule (the “Early Purchase Date”), for a price equal to (i)
the Termination Value (calculated as of the Early Purchase Date) for the Equipment, and (ii) all rent and other sums due and unpaid as of the Early Purchase Date (the “Early Option Price”), plus all applicable sales taxes. Lessee
must notify Lessor of its intent to purchase the Equipment in writing at least thirty (30) days, but not more than two hundred seventy (270) days, prior to the Early Purchase Date. If Lessee is in default or if the Schedule or this Agreement has
already been terminated, Lessee may not purchase the Equipment. (The purchase option granted by this subsection shall be referred to herein as the “Early Purchase Option”). 
  
 (b) If Lessee exercises its Early Purchase Option, then on the Early Purchase
Date, Lessee shall pay to Lessor any rent and other sums due and unpaid on the Early Purchase Date and Lessee shall pay the Early Option Price, plus all applicable sales taxes, to Lessor in cash. 
  
 19. END OF LEASE PURCHASE OPTION: Lessee may, at lease expiration, purchase all (but
not less than all) of the Equipment on any Schedule on an AS IS BASIS for cash equal to the amount indicated on such Schedule (the “Option Payment”), plus all applicable sales taxes. The Option Payment, plus all applicable sales
taxes, shall be due and payable in immediately available funds on the expiration date such Schedule. Lessee must notify Lessor of its intent to purchase the Equipment in writing at least one hundred eighty (180) days prior to the expiration date of
the Schedule. If Lessee is in default or if the Schedule or this Agreement has already been terminated, Lessee may not purchase the Equipment. 
  

 20. MISCELLANEOUS: 
  
 (a) LESSEE AND LESSOR UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY
OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR. THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

  
 (b) Any cancellation or termination by Lessor of this
Agreement, any Schedule, supplement or amendment hereto, or the lease of any Equipment hereunder shall not release Lessee from any then outstanding obligations to Lessor hereunder. All Equipment shall at all times remain personal property even
though it may be attached to real property. The Equipment shall not become part of any other property by reason of any installation in, or attachment to, other real or personal property. 
  
 (c) Time is of the essence of this Agreement. Lessor’s failure at any time to require strict performance by Lessee of
any of the provisions hereof shall not waive or diminish Lessor’s right at any other time to demand strict compliance with this Agreement. Lessee agrees, upon Lessor’s request, to execute, or otherwise authenticate, any document, record or
instrument necessary or expedient for filing, recording or perfecting the interest of Lessor or to carry out the intent of this Agreement. In addition, Lessee hereby authorizes Lessor to file a financing statement and amendments thereto describing
the Equipment described in any and all Schedules now and hereafter executed pursuant hereto and adding any other collateral described therein and containing any other information required by the applicable Uniform Commercial Code. Lessee irrevocably
grants to Lessor the power to sign Lessee’s name and generally to act on behalf of Lessee to execute and file financing statements and other documents pertaining to any or all of the Equipment. All notices required to be given hereunder shall
be deemed adequately given if sent by registered or certified mail to the addressee at its address stated herein, or at such other place as such addressee may have specified in writing. This Agreement and any Schedule and Annexes thereto constitute
the entire agreement of the parties with respect to the subject matter hereof. NO VARIATION OR MODIFICATION OF THIS AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISIONS OR CONDITIONS, SHALL BE VALID UNLESS IN WRITING AND SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE PARTIES HERETO. 
  
 (d) If Lessee does not
comply with any provision of this Agreement, Lessor shall have the right, but shall not be obligated, to effect such compliance, in whole or in part. All reasonable amounts spent and obligations incurred or assumed by Lessor in effecting such
compliance shall constitute additional rent due to Lessor. Lessee shall pay the additional rent within five days after the date Lessor sends notice to Lessee requesting payment. Lessor’s effecting such compliance shall not be a waiver of
Lessee’s default. 
  
 (e) Any rent or other amount not paid
to Lessor when due shall bear interest, from the due date until paid, at the lesser of eighteen percent (18%) per annum or the maximum rate allowed by law. Any provisions in this Agreement and any Schedule that are in conflict with any statute, law
or applicable rule shall be deemed omitted, modified or altered to conform thereto. 
  
 (f) Lessee hereby irrevocably authorizes Lessor to adjust the Capitalized Lessor’s Cost up or down by no more than ten percent [10%] within each Schedule to account for equipment change orders, equipment returns,
invoicing errors, and similar matters. Lessee acknowledges and agrees that the rent shall be adjusted as a result of the change in the Capitalized Lessor’s Cost. Lessor shall send Lessee a written notice stating the final Capitalized
Lessor’s Cost, if it has changed. 
  
 (g) THIS AGREEMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CONNECTICUT (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE EQUIPMENT. 
  
 (h) Any cancellation or termination by Lessor, pursuant to the provisions of this Agreement, any Schedule, supplement or amendment hereto, of the lease of
any Equipment hereunder, shall not release Lessee from any then outstanding obligations to Lessor hereunder. 
  
 (i) To the extent that any Schedule would constitute chattel paper, as such term is defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction, no security interest therein may be created through the transfer or possession of this Agreement in and of itself without the transfer or possession of the original of a Schedule executed pursuant to this Agreement and incorporating
this Agreement by reference; and no security interest in this Agreement and a Schedule may be created by the transfer or possession of any counterpart of the Schedule other than the original thereof, which shall be identified as the document marked
Original and all other counterparts shall be marked Duplicate. 
  

 IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement to be executed by their duly
authorized representatives as of the date first above written. 
  

									
	 LESSOR:
	 	 	 	 LESSEE:

			
	General Electric Capital Corporation	 	 	 	Coley Pharmaceutical Group, Inc.
					
	By:	 	/s/    JOHN EDEL        	 	 	 	By:	 	/s/    ROBERT FORRESTER        
	 Name:
	 	John Edel	 	 	 	 Name:
	 	Robert Forrester
	 Title:
	 	SVP	 	 	 	 Title:
	 	SVP

  

  
 EQUIPMENT SCHEDULE

 (Quasi Lease - Fixed Rate) 
 SCHEDULE NO. 001 
 DATED THIS December 18, 2001 
 TO MASTER LEASE AGREEMENT 
 DATED AS OF November 13, 2001 
  

			
	 Lessor & Mailing Address:
	  	 Lessee & Mailing Address:

	 General Electric Capital Corporation
	  	Coley Pharmaceutical Group, Inc.
	 401 Merritt 7 Suite 23
	  	93 Worchester Street Suite 101
	 Norwalk, CT 06856
	  	Wellesley, MA 02481

  
 This Schedule is executed pursuant to,
and incorporates by reference the terms and conditions of, and capitalized terms not defined herein shall have the meanings assigned to them in, the Master Lease Agreement identified above (“Agreement”, said Agreement and this
Schedule being collectively referred to as “Lease”). This Schedule, incorporating by reference the Agreement, constitutes a separate instrument of lease. 
  

	A.	Equipment: Subject to the terms and conditions of the Lease, Lessor agrees to lease to Lessee the Equipment described below (the “Equipment”).

  

									
	 Number
 of Units

	  	 Capitalized
 Lessor’s Cost

	  	Manufacturer

	  	Serial Numbers

	  	 Year/Model and Type
 of Equipment

  
 Equipment as
described on attached Exhibit A Hereto and made a part Hereof 
  
 Equipment
immediately listed above is located at: 93 Worchester Street, Suite 101, Wellesley, Norfolk County, MA 02481 
  

	B.	Financial Terms 

  

							
	 1.
	  	Advance Rent (if any): $ 37,353.28.	  	6.	  	Lessee Federal Tax ID No.: 061506689.
	 2.
	  	Capitalized Lessor’s Cost: $ 1,169,839.25.	  	7.	  	Last Delivery Date: Dec - 18, 2001.
	 3.
	  	Basic Term (No. of Months): 36 Months.	  	8.	  	Daily Lease Rate Factor: 3.193027.
	 4.
	  	Basic Term Lease Rate Factor: .10643.	  	9.	  	Interest Rate: 9.84% per annum.
	 5.
	  	Basic Term Commencement Date: January 1, 2002.	  	10.	  	Option Payment: $ 1.00

  

	11.	First Termination Date: n/a ( ) months after the Basic Term Commencement Date. 

  

	12.	Interim Rent: For the period from and including the Lease Commencement Date to the Basic Term Commencement Date (“Interim Period”), Lessee shall pay as rent
(“Interim Rent”) for each unit of Equipment, the product of the Daily Lease Rate Factor times the Capitalized Lessor’s Cost of such unit times the number of days in the Interim Period. Interim Rent shall be due on Jan. 1, 2002.

  

	13.	Basic Term Rent. Commencing on Jan. 1, 2002 and on the same day of each month thereafter (each, a “Rent Payment Date”) during the Basic Term. Lessee shall pay as
rent (“Basic Term Rent”) the product of the Basic Term Lease Rate Factor times the Capitalized Lessor’s Cost of all Equipment on this Schedule. 

  

	14.	Lessee agrees and acknowledges that the Capitalized Lessor’s Cost of the Equipment as stated on the Schedule is equal to the fair market value of the Equipment on the date
hereof. 

  

	C.	Interest Rate: Interest shall accrue from the Lease Commencement Date through and including the date of termination of the Lease. 

  

	D.	Property Tax 

  
 PROPERTY TAX NOT APPLICABLE ON EQUIPMENT LOCATED IN 93 WORCHESTER STREET, WELLESLEY, MA 02481. 
  
 Lessor may notify Lessee (and Lessee agrees to follow such notification)
regarding any changes in property tax reporting and payment responsibilities. 
  

	E.	Article 2A Notice 

  
 IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE AS ADOPTED IN THE APPLICABLE STATE, LESSOR HEREBY MAKES THE FOLLOWING
DISCLOSURES TO LESSEE PRIOR TO EXECUTION OF THE LEASE, (A) THE PERSON(S) SUPPLYING THE EQUIPMENT IS VARIOUS (THE “SUPPLIER(S)”), (B) LESSEE IS ENTITLED TO THE PROMISES AND WARRANTIES, INCLUDING THOSE OF ANY THIRD PARTY,
PROVIDED TO THE LESSOR BY SUPPLIER(S), WHICH IS SUPPLYING THE EQUIPMENT IN CONNECTION WITH OR AS PART OF THE CONTRACT BY WHICH LESSOR ACQUIRED THE EQUIPMENT AND (C) WITH RESPECT TO SUCH EQUIPMENT, LESSEE MAY COMMUNICATE WITH SUPPLIER(S) AND RECEIVE
AN ACCURATE AND COMPLETE STATEMENT OF SUCH PROMISES AND WARRANTIES, INCLUDING ANY DISCLAIMERS AND LIMITATIONS OF THEM OR OF 

  

 
REMEDIES. TO THE EXTENT PERMITTED BY APPLICABLE LAW, LESSEE HEREBY WAIVES ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE IN ARTICLE 2A AND ANY
RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE WHICH MAY LIMIT OR MODIFY ANY OF LESSOR’S RIGHTS OR REMEDIES UNDER THE DEFAULT AND REMEDIES SECTION OF THE AGREEMENT. 
  

	F.	Stipulated Loss and Termination Value Table* 

  

											
	 Rental
 Basic

	  	 Termination
 Value Percentage

	  	 Stipulated
 Loss Value
 Percentage

	  	Rental

	  	Termination Value
Percentage

	  	 Stipulated
 Loss Value
 Percentage

	 1
	  	99.807	  	103.788	  	19	  	53.475	  	55.997
	 2
	  	97.408	  	101.308	  	20	  	50.696	  	53.137
	 3
	  	94.989	  	98.808	  	21	  	47.894	  	50.254
	 4
	  	92.550	  	96.288	  	22	  	45.069	  	47.348
	 5
	  	90.091	  	93.748	  	23	  	42.221	  	44.419
	 6
	  	87.613	  	91.188	  	24	  	39.350	  	41.466
	 7
	  	85.113	  	88.608	  	25	  	36.455	  	38.490
	 8
	  	82.594	  	86.007	  	26	  	33.536	  	35.490
	 9
	  	80.053	  	83.386	  	27	  	30.594	  	32.467
	 10
	  	77.492	  	80.743	  	28	  	27.627	  	29.419
	 11
	  	74.910	  	78.080	  	29	  	24.636	  	26.347
	 12
	  	72.307	  	75.396	  	30	  	21.620	  	23.250
	 13
	  	69.682	  	72.690	  	31	  	18.580	  	20.129
	 14
	  	67.036	  	69.963	  	32	  	15.515	  	16.982
	 15
	  	64.368	  	67.214	  	33	  	12.424	  	13.811
	 16
	  	61.678	  	64.443	  	34	  	9.308	  	10.614
	 17
	  	58.966	  	61.650	  	35	  	6.167	  	7.391
	 18
	  	56.232	  	58.835	  	36	  	3.000	  	4.143

  

	*	The Stipulated Loss Value or Termination Value for any unit of Equipment shall be the Capitalized Lessor’s Cost of such unit multiplied by the appropriate percentage
derived from the above table. In the event that the Lease is for any reason extended, then the last percentage figure shown above shall control throughout any such extended term. 

  

	G.	Payment Authorization 

  
 You are hereby irrevocably authorized and directed to deliver and apply the proceeds due under this Schedule as follows: 
  

					
	 Company Name

	  	 Address

	  	Amount

	 COLEY PHARMACEUTICAL GROUP, INC.
	  	93 Worcester Street, Wellesley, MA 024r81	  	$1,169,839.25

  
 This authorization and
direction is given pursuant to the same authority authorizing the above-mentioned financing. 
  
 Pursuant to the provisions of the lease, as it relates to this Schedule, Lessee hereby certifies and warrants that (i) all Equipment listed above is in good condition and appearance, has been delivered and
installed (if applicable) as of the date stated above and in working order; (ii) Lessee has inspected the Equipment, and all such testing as it deems necessary has been performed by Lessee, Supplier or the manufacturer; and (iii) Lessee accepts the
Equipment for all purposes of the Lease and all attendant documents. 
  
 Lessee does further certify that as of the date hereof (i) Lessee is not in default under the Lease; and (ii) the representations and warranties made by Lessee pursuant to or under the Lease are true and correct on the date hereof.

  
 Except as expressly modified hereby, all terms and provisions
of the Agreement shall remain in full force and effect. This Schedule is not binding or effective with respect to the Agreement or Equipment until executed on behalf of Lessor and Lessee by authorized representatives of Lessor and Lessee
respectively. 
  

 IN WITNESS WHEREOF, Lessee and Lessor have caused this Schedule to be executed by their duly
authorized representatives as of the date first above written. 
  

									
	 LESSOR:
	 	 	 	 LESSEE:

	General Electric Capital Corporation	 	 	 	Coley Pharmaceutical Group, Inc.
					
	By:	 	/s/    JOHN EDEL        	 	 	 	By:	 	/s/    ROBERT FORRESTER        
	 Name:
	 	John Edel	 	 	 	 Name:
	 	Robert Forrester
	 Title:
	 	SVP	 	 	 	 Title:
	 	SVP

  

  
 ANNEX B 
 TO 
 SCHEDULE NO. 001 

TO MASTER LEASE AGREEMENT 
 DATED
AS OF November 13, 2001 
  
 BILL OF SALE 
  
 Coley Pharmaceutical Group, Inc. (the “Seller”), in consideration of
the sum of One Million One Hundred Forty Two Thousand One Hundred Fourteen and 34/100 Dollars ($1,142,114.34) plus sales taxes in the amount of Twenty Seven Thousand Seven Hundred Twenty Four and 91/100 Dollars ($27,724.91) (if
exemption from sales tax is claimed, an exemption certificate must be furnished to Buyer herewith), paid by General Electric Capital Corporation (together with its successors and assigns, if any, the “Buyer”), receipt of
which is acknowledged, hereby grants, sells, assigns, transfers and delivers to Buyer the equipment (the “Equipment”) described in the above schedule (said schedule and related lease being collectively referred to as
“Lease”), along with whatever claims and rights Seller may have against the manufacturer and/or supplier of the Equipment (the “Supplier”), including but not limited to all warranties and representations. At
Buyer’s request, Seller will cause Supplier to execute the attached Acknowledgment. 
  
 Buyer is purchasing the Equipment for leasing back to Seller pursuant to the Lease. Seller represents and warrants to Buyer that (1) Buyer will acquire by the terms of this Bill of Sale good title to the Equipment
free from all liens and encumbrances whatsoever; (2) Seller has the right to sell the Equipment; and (3) the Equipment has been delivered to Seller in good order and condition, and conforms to the specifications, requirements and standards
applicable thereto; and (4) the equipment has been accurately labeled, consistent with the requirements of 40 CFR part 82 Subpart E, with respect to products manufactured with a controlled (ozone-depleting) substance. 
  
 Seller agrees to save and hold harmless Buyer from and against any and all federal, state,
municipal and local license fees and taxes of any kind or nature, including, without limiting the generality of the foregoing, any and all excise, personal property, use and sales taxes, and from and against any all liabilities, obligations, losses,
damages, penalties, claims, actions and suits resulting therefrom and imposed upon, incurred by or asserted against Buyer as a consequence of the sale of the Equipment to Buyer. 
  
 IN WITNESS WHEREOF, Seller has executed this Bill of Sale this 12th day of December, 2001. 
  

			
	 SELLER:

	Coley Pharmaceutical Group, Inc.
		
	By:	 	/s/    ROBERT FORRESTER        
	 Name:
	 	Robert Forrester
	 Title:
	 	SVP.

  

  
 CROSS-COLLATERAL AND
CROSS-DEFAULT AGREEMENT 
  
 General Electric Capital Corporation 

401 Merritt 7 Suite 23 
 Norwalk, CT 06856 
  
 Gentlemen: 
  
 You (and/or your successors or assigns, “you”) have entered into or purchased one or more conditional sale
contracts, lease agreements, chattel mortgages, security agreements, notes and other choses in action (herein designated “Accounts”) arising from the bona fide sale or lease to us or to our subsidiaries or affiliates, by various
vendors or lessors, of equipment and inventory (herein designated “Collateral”) and/or you have made direct loans to or otherwise extended credit to us evidenced by Accounts creating security interests in Collateral. 
  
 In order to induce you to extend our time of payment on one or more Accounts
and/or to make additional loans to us and/or to purchase additional Accounts and/or to lease us additional equipment, and in consideration of you so doing, and for other good and valuable consideration, the receipt of which we hereby acknowledge, we
agree as follows: 
  
 All presently existing and hereafter
acquired Collateral in which you have or shall have a security interest shall secure the payment and performance of all of our liabilities and obligations to you of every kind and character, whether joint or several, direct or indirect, absolute or
contingent, due or to become due, and whether under presently existing or hereafter created Accounts or agreements, or otherwise. 
  
 We further agree that your security interest in the property covered by any Account now held or hereafter acquired by you shall not be terminated in whole
or in part until and unless all indebtedness of every kind, due or to become due, owed by us or to our subsidiaries to you is fully paid and satisfied and the terms of every Account have been fully performed by us or to our subsidiaries. It is
further agreed that you are to retain your security interest in all property covered by all Accounts held or acquired by you, as security for payment and performance under each such Account, notwithstanding the fact that one or more of such Accounts
may become fully paid. 
  
 This instrument is intended to create
cross-default and cross-security between and among all the within described Accounts now owned or hereafter acquired by you. 
  
 A default under any Account or agreement shall be deemed to be a default under all other Accounts and agreements. A default shall result if we fail to pay
sum when due on any Account or agreement, or if we or our subsidiaries or affiliates breach any of the other terms and conditions thereof, or if we or our subsidiaries of affiliates become insolvent, cease to do business as a going concern, make an
assignment for the benefit of creditors, or if a petition for a receiver or in bankruptcy is filed by or against us or our subsidiaries or affiliates, or if any of our property is seized, attached or levied upon. Upon our or our subsidiaries or
affiliates default any or all Accounts and agreements shall, at your option, become immediately due and payable without notice or demand to us or our subsidiaries or affiliates or any other party obligated thereon, and you shall have and may
exercise any and all rights and remedies of a secured party under the Uniform Commercial Code as enacted in the applicable jurisdiction and as otherwise granted to you under any Account or other agreement. We hereby waive, to the maximum extent
permitted by law, notices of default notices of repossession and sale or other disposition of collateral, and all other notices, and in the event any such notice cannot be waived, we agree that if such notice is mailed to us postage prepaid at the
address shown below at least five (5) days prior to the exercise by you of any of your rights or remedies, such notice shall be deemed to be reasonable and shall fully satisfy any requirement for giving notice. 
  
 All rights granted to you hereunder shall be cumulative and not alternative,
shall be in addition to and shall in no manner impair or affect your rights and remedies under any existing Account, agreement, statute or rule of law. 
  

 This agreement may not be varied or altered nor its provisions waived except by your duly executed
written agreement. This agreement shall inure to the benefit of your successors and assigns and shall be binding upon our heirs, administrators, executors, legal representatives, successors and assigns. 
  
 IN WITNESS WHEREOF, this agreement is executed this 12th day of December, 2001 
  

			
	Coley Pharmaceutical Group, Inc.
	(Name of Proprietorship, Partnership or Corporation, as applicable)
		
	 By:
	 	/s/    ROBERT FORRESTER        
	 	 	 (Signature)

	 	 	Robert Forrester
		
	 Title:
	 	SVP
	 	 	(Owner, Partner or Officer, as applicable)
		
	 Address:
	 	 93 Worchester Street Suite 101, Wellesley, MA 02481

  

  
 ADDENDUM NO. 001

 TO MASTER LEASE AGREEMENT DATED AS OF NOVEMBER 13, 2001 
  
 THIS ADDENDUM (this “Addendum”) amends and supplements the above referenced agreement (the
“Agreement”), between General Electric Capital Corporation (together with its successors and assigns, if any, “Lessor”) and Coley Pharmaceutical Group, Inc. (“Lessee”) and is hereby
incorporated into the Agreement as though fully set forth therein. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Master Lease Agreement. 
  
 The Agreement is hereby amended by adding the following: 
  

	 	(a)	FINANCIAL COVENANTS. Lessee shall, at all times during the term of the Agreement, comply with the following: 

  
 Maintain in tandem with Coley Securities Corporation (as defined below)
minimum Unrestricted Cash (as defined below) at the greater of $20,000,000.00 or twelve (12) months cash needs (defined as the cash burn for the 3 months just completed, multiplied by a factor of 4). If this covenant is violated, Lessee will provide
Lessor within ten (10) days of such occurrence an irrevocable (and acceptable to Lessor) letter of credit (“Letter of Credit”), from a financial institutional acceptable to Lessor, in an amount equal to fifty percent (50%) of the Original
Equipment Cost. 
  
 Unrestricted Cash shall be defined as cash on
hand, including investments in marketable securities with maturities of less than fourteen (14) months, less cash pledged to other parties. 
  

	 	(b)	COMPLIANCE REPORTS. Lessee’s Authorized Representative shall certify that Lessee is in compliance with the requirements of subsection (a) above. Such notification and
certification shall be provided within ninety (90) days after the end of each fiscal quarter (the “Compliance Date”), reflecting such information as of the end of such fiscal quarter. If Lessee fails timely to provide such
notification and compliance certificates, within fifteen (15) days after the Compliance Date, such failure shall automatically be deemed a default under the Agreement without notice or other act by Lessor. The reports required under this section are
in addition to and not a substitute for the reports required under the REPORTS Section of the Agreement. 

  

	 	(c)	CASH MANAGEMENT. Lessee shall enter into a cash management agreement with Coley Securities Corporation (“CSC”), the form and substance of which Lessor shall
approve, which provides the following: (i) Lessee shall authorize all Rent payments and other sums due from Lessee to Lessor pursuant to the Lease to be from CSC funds on account of and for the benefit of Lessee; (ii) CSC shall only maintain funds
on account for Lessee and Lessee’s subsidiaries and affiliates; (iii) Lessee shall authorize CSC to pay all sums held on account of Lessee to be paid to Lessor if Lessee fails to provide Lessor the Letter of Credit as required hereunder and
(iv) all cash, cash equivalents, marketable securities, revenues, royalties, fees and any other such income and monies received by Coley Pharmaceutical Group, Ltd. must immediately be transferred to CSC. 

  
 Except as expressly modified hereby, all terms and provisions of the Master Lease Agreement
shall remain in full force and effect. This Addendum is not binding nor effective with respect to the Master Lease Agreement until executed on behalf of Lessor and Lessee by authorized representatives of Lessor and Lessee. 
  
 IN WITNESS WHEREOF, Debtor and Secured Party have caused this Addendum to be executed by
their duly authorized representatives as of the date first above written. 
  

									
	Lessor:	 	 	 	Lessee:
	 General Electric Capital Corporation
	 	 	 	 Coley Pharmaceutical Group, Inc.

					
	By:	 	/s/    JOHN EDEL        	 	 	 	By:	 	/s/    ROBERT FORRESTER        
	Name:	 	John Edel	 	 	 	Name:	 	Robert Forrester
	Title:	 	SVP	 	 	 	Title:	 	SVP
					
	 	 	 	 	 	 	Attest:	 	/s/    CHARLES E. YON         

  

  
 SECURITY AGREEMENT -
STOCK PLEDGE 
  
 This Security Agreement - Stock Pledge (the “Pledge
Agreement”) is entered into this 12th day of December, 2001, by and between General Electric Capital
Corporation (“Pledgee”) and Coley Pharmaceutical Group, Inc. (the “Pledgor”). 
  
 WHEREAS, Pledgee has granted a lease line of credit to Coley Pharmaceutical Group, Inc. (“Pledgor”), such lease line being evidenced by that certain Equipment Schedule No. 001, dated 12/12/01, in the amount
of $1,169,839.25, all future equipment schedules (collectively referred to as “Schedule”), and secured by that certain Master Lease Agreement, dated November 13, 2001 (the “Security Agreement”) between Pledgor, as Lessee, and
Pledgee, as Lessor (the Schedule and Security Agreement hereinafter referred to collectively as the “Debt Documents”). 
  
 WHEREAS, Pledgee requires that Pledgor provide, or cause to be provided to Pledgee, additional collateral to secure the performance of Pledgor under the Debt Documents;

  
 NOW THEREFORE, in consideration of the foregoing, and other good and valuable
consideration, the parties agrees as follow: 
  
 As additional security for
Pledgor’s performance under the Debt Documents, Pledgor hereby pledges to Pledgee and grants Pledgee a security interest in certain securities (as defined in Article 8 of the Uniform Commercial Code) more particularly described as follows, and
all stock dividends, stock splits, and any additions to, replacements or substitutions for any of them, and all proceeds of the foregoing (hereinafter referred to collectively as the “Securities” and individually as a
“Security”): 
  
 100% of the issued and outstanding
shares of                      Stock of Coley Securities Corporation (“CSC”) [as evidenced by Certificate No.
        , dated             , in the name
                                ] 
  
 With respect to each particular Security, the security interest granted herein shall attach
immediately upon Pledgor’s execution of this Pledge Agreement, or as soon as Pledgor acquires rights in the Security, whichever occurs later. 
  
 The interests of the parties hereto in the Securities are and shall be subject to the following terms and conditions: 
  
 1. DELIVERY. In furtherance of the grant of security interest and pledge given herein,
Pledgor shall, at the time it executes this Pledge Agreement, deliver to Pledgee all certificates and other indicia of ownership relating to the Securities, which shall be either (i) duly endorsed in blank by CSC so as to enable Pledgee to sell the
Securities without further action by any party other than Pledgee, or (ii) accompanied by duly executed irrevocable stock powers relating thereto in the form of Exhibit A hereto. CSC does hereby appoint Pledgee CSC’s true and lawful attorney
for CSC and in CSC’s name, place and stead, to cause the Securities to be transferred on the books of Coley Securities Corporation to the name of Pledgee or its nominees upon a breach or default by Pledgor under the Debt Documents. Pledgor
agrees that Pledgee shall have no liability of any kind or nature whatsoever with respect to the Securities other than to hold, release or dispose of them in accordance with the terms and conditions of this Pledge Agreement. 
  
 2. DEFAULT BY PLEDGOR. Any breach or default by Pledgor under the Debt Documents, shall
constitute a default under this Pledge Agreement, whereupon Pledgee may sell the Securities in such manner and for such price as Pledgee deems appropriate and apply the proceeds of such sale as provided in Section 4, below. (Without limiting the
generality of the foregoing, Pledgor agrees that inasmuch as the Securities are publicly traded, any sale of the Securities, in bulk or in parcels, through a broker on the open market shall constitute a commercially reasonable sale). After default
by Pledgor and upon the request of Pledgee, Pledgor shall take such further action and execute such further documents as Pledgee shall deem necessary to effect a sale and transfer of the Securities. With respect to this Pledge Agreement Pledgor
hereby waives presentment, demand, protest and notice of presentment, demand, protest and default. Nothing in this Pledge Agreement shall be construed as requiring Pledgee first to seek or pursue 

  

 
any other remedy against Pledgor or any other party or first to foreclose, exhaust or otherwise proceed against any equipment, other collateral or security
which may be given in connection with the Debt Documents. 
  
 3. DIVIDENDS AND
STOCK SPLITS. Until such time as Pledgor defaults under the Debt Documents, Pledgor shall have the right to (i) exercise any and all voting rights pertaining to the securities, and (ii) receive all dividends and distributions paid by the issuer,
except for any dividends, distributions or cash paid or payable on redemption of, or in exchange for, any of the Securities. Any dividends or distributions received by Pledgee after Pledgor’s default but before the Securities are sold shall be
retained by Pledgee and applied in the manner specified in paragraph 4 hereof. In the event that during the term of this Pledge Agreement, any stock split is declared by the issuer of the Securities, Pledgor shall deliver such stock to Pledgee to be
held under this Pledge Agreement in the same manner as otherwise provided herein. 
  
 4. APPLICATION OF PROCEEDS. Pledgee shall apply any retained dividends or distributions, and proceeds of sale of the Securities received pursuant to Paragraph 2, first to Pledgee’s reasonable costs and expenses incurred as a result of
the default of Pledgor, including but not limited to attorneys fees and costs incurred in enforcing the Debt Documents and in exercising Pledgee’s rights hereunder, then to the unpaid obligations due under the Debt Documents, then to any other
Obligations of Pledgor to Pledgee. Any surplus remaining after all of Pledgor’s Obligations to Pledgee are satisfied in full shall be paid to Pledgor. Any deficiency shall be paid by Pledgor. 
  
 5. RELEASE AND RECONVEYANCE. Unless otherwise sold by Pledgee pursuant to Section 2, the
Securities will be held by Pledgee until (i) all of Pledgor’s obligations under the Debt Documents have been indefeasibly performed in full. Within seven (7) business days thereafter Pledgee shall deliver the Securities and all certificates and
other indicia of ownership relating thereto to Pledgor, together with any documents that may be required to reconvey the Securities to Pledgor, duly executed or endorsed by an authorized manager of Pledgee, after which the terms of this Pledge
Agreement shall be deemed to have been satisfied. 
  
 6. REPRESENTATIONS AND
WARRANTIES OF PLEDGOR. Pledgor represents, warrants and covenants to Pledgee that: 
  
 (a) Pledgor is the legal and beneficial owner of the Securities and, except for the security interest granted to Pledgee herein, Pledgor has, and will at all times during the term of this Pledge Agreement have, good
and marketable title to the Securities, free and clear of any security interest, lien, pledge, encumbrance, option, claim or conditional sale contract, lease or other title retention agreement and Pledgor shall not take any action which would
impair, diminish or dilute the value of the Securities or attempt to take any such action; 
  
 (b) Pledgor is organized, validly existing, and in good standing under the laws of the State of Delaware and upon execution of this Pledge Agreement by Pledgee, the Pledge Agreement shall be a legal, valid and binding
obligation of Pledgor and enforceable against Pledgor according to its terms (subject only to the relief generally available to creditors under the United States Bankruptcy Code and other similar state legislation; 
  
 (c) Upon the execution and delivery of this Pledge Agreement by Pledgor and
delivery of the Securities to Pledgee as provided hereby or the delivery to the Holder (as defined below) of the Securities of the written Notification/Instruction referred to in Section 6(g) below, the Pledgee’s security interest in the
Securities conferred hereby will be a valid, perfected, first priority security interest. 
  
 (d) The execution, delivery and performance by Pledgor of this Pledge Agreement will not violate any provision of law, any order of any court or other agency of government, or any indenture agreement or other
instrument to which Pledgor is a party or by which Pledgor or any of Pledgor’s property is bound, or be in conflict with, result in a breach of or constitute (with due notice or lapse of time, or both) a default under any such indenture,
agreement or other instrument, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of Pledgor’s property or assets, except as contemplated by the provisions of this Pledge Agreement. No
consent, approval, authorization, order, registration, or qualification of or with any court or regulatory authority or other governmental body having jurisdiction over Pledgor, the absence of which would adversely affect the legal and valid
execution, delivery and performance by Pledgor of 

  

 
its obligations under this Pledge Agreement, is required. There is no litigation, investigation or proceeding of or before any arbitrator or governmental
authority pending or threatened by or against Pledgor which, if adversely determined, would have a material adverse effect on the respective business, operations, property or financial or other condition of Pledgor. 
  
 (e) The pledge and security interest granted to Pledgee hereunder shall
survive any expiration, termination or revocation of Pledgor. 
  
 (f) Pledgor shall cooperate with Pledgee and shall execute and deliver, or cause to be executed and delivered, to Pledgee all stock powers, proxies, assignments, financing statement, instruments, and other documents, and shall take all
further action, at the expense of Pledgor, from time to time reasonably requested by Pledgee, in order to maintain a continuing, first-priority, perfected security interest in the Securities in favor of Pledgee, to enable Pledgee to exercise and
enforce its rights and remedies hereunder with respect to the Securities. 
  
 (g) In the event that any of the Securities are not in the possession of Pledgee, Pledgor shall execute and deliver to the holder of such securities (the “Holder”) a written notification/Instruction pursuant
to section 8-313 and 8-321 of the Connecticut Uniform Commercial Code, substantially in the form of Exhibit B hereto, and each such notification shall be immediately delivered upon the execution of this Agreement or as otherwise requested by
Pledgee. 
  
 (h) There are no restrictions upon the transfer of
any of the Securities and Pledgor has the right to pledge and grant a security interest in or otherwise transfer such Securities free of any encumbrance or right of third parties. 
  
 7. NON-EXCLUSIVITY. The enforcement by Pledgee of any rights and remedies hereunder shall not be exclusive and shall be in addition to and
not in lieu of any other remedies available to Pledgee at law, in equity or pursuant to any other contract between Pledgee and Pledgor or Pledgee and Pledgor, or under any other instrument given by Pledgor to Pledgee. 
  
 8. NOTICES. Notices, demands, written communications and payments required or permitted to be
given hereunder shall be conclusively deemed to be properly given at time of delivery if delivered (i) personally, (ii) via commercial delivery service capable of providing documentary evidence of delivery or (iii) via United States certified mail,
return receipt requested, properly addressed and postage prepaid, to the following addresses: 
  
 If to Pledgee: 
  
 GENERAL ELECTRIC CAPITAL
CORPORATION 
 401 Merrit 7, Suite 23 
 Norwalk, CT 06856

 Attn: Risk Manager 
  
 If to Pledgor: 
  
 COLEY PHARMACEUTICAL GROUP, INC. 
 93 Worcester Road 
 Wellesley, MA 02481 
 Attn: John Crowley 
  
 9. CHOICE OF LAW. This Pledge Agreement shall be construed and enforced according to the laws of Connecticut (including but not limited to
its Uniform Commercial Code) as they would apply to a contract made in such state and any applicable laws of the United States of America. 
  

 10. ENTIRE AGREEMENT. This Pledge Agreement and all documents ancillary thereto contain the entire agreement between the
parties relating to the subject matter thereof, and no prior agreements, understandings or offers shall be of any force or effect whatsoever. The terms of this Pledge Agreement may not be changed, amended or waived except by a writing signed by the
Pledgee and Pledgor. 
  
 11. ATTORNEY FEES: Pledgor agrees to pay all reasonable
attorney fees, costs and expenses incurred by Pledgee in enforcing its rights under this Pledge Agreement. 
  
 12. ASSIGNMENT: This Pledge Agreement shall inure to the benefit of the respective successors and assigns of Pledgor and Pledgee, provided however, Pledgor may not assign this Pledge Agreement or any rights hereunder
without Pledgor’s prior written consent. Pledgee may assign its rights and obligations hereunder. 
  
 IN WITNESS WHEREOF, this Pledge Agreement was executed by the parties as of the date first written above. 
  

									
	GENERAL ELECTRIC CAPITAL CORPORATION COLEY PHARMACEUTICAL GROUP, INC.
					
	By:	 	/s/    JOHN EDEL        	 	 	 	By:	 	/s/    ROBERT FORRESTER        
	 Title:
	 	SVP	 	 	 	 Title:
	 	SVP

  

  
 Exhibit A 
  
 IRREVOCABLE STOCK POWER 
  
 For value received and in accordance with the terms and conditions of that
certain Pledge of Certificated Securities, dated             ,
                                 (“Transferor”), hereby sells, assigns
and transfers unto General Electric Capital Corporation,                          shares of
             Stock of Coley Securities Corporation, a Massachusetts corporation (the “Corporation”), represented by Certificate
No.         standing in the name of the undersigned on the books of the Corporation, and hereby irrevocably constitutes and appoints General Electric Capital Corporation, Attorney-in-Fact, to transfer
the said shares on the books of the Corporation with full power of substitution in the premises. 
  
 Dated:                         , 2001 
  
 __________________ 
  
 GUARANTY OF SIGNATURE 
  
 I am an officer of a commercial bank or trust company, OR a firm having membership in the New York Stock Exchange or another national
securities exchange, and I know and certify that the above signature is valid and guarantee it as the true signature of the Transferor identified above. 
  

					
			
	 Dated:                            
	 	 	 	  
	 	 	 	 	 Signature and Title of Office

			
	  	 	 	 	  
	 	 	 	 	 Name of bank, trust company or firm

  

  
 EXHIBIT B 
  
 TO: 
 __________________________________ 
 __________________________________ 
 __________________________________ 
  

	Re:	Coley Pharmaceutical Group, Inc. (“Pledgor”) 

	    	General Electric Capital Corporation (“Pledgee”) 

  
 Gentlemen: 
  
 Reference is hereby made to that certain Security Agreement-Stock Pledge dated as of                      (the
“Agreement”), between Pledgor and Pledgee, pursuant to which Pledgor pledged a security interest to Pledgee in the capital stock of Coley Securities Corporation, a Massachusetts corporation (the “Corporation”). Any and all
initially capitalized terms used herein shall have the meanings ascribed to them in the Agreement, unless specifically defined herein. A copy of the Agreement has been attached hereto as Exhibit A for your reference. 
  
 Reference is also hereby made to the fact that you are currently the holder of 100% of the
issued and outstanding shares of the                      stock (the shares of
                         stock of which you are the holder are hereinafter collectively referred to as the
“Securities”) of corporation, which constitute part of the collateral in which Pledgee was granted a security interest under and pursuant to the Agreement. 
  

	 	1.	To notify you, pursuant to Article 8 of the CT. Uniform Commercial Code, that Pledgee has a security interest in the securities; 

  

	 	2.	To instruct to that you are to identify (and to continue to identify), by book entry or otherwise, the Securities as subject to Pledgee’s security interest;

  

	 	3.	To instruct you to hold the Securities as Pledgee’s agent; 

  

	 	4.	To instruct you not to dispose of the Securities or take any direction from any person other than Pledgee; 

  

	 	5.	To instruct you to transfer the Securities, upon the termination of any custody account respecting the Securities prior to the termination of the Agreement, to any bank or other
institution designated in writing by Pledgee; and 

  

	 	6.	To authorize you to rely upon any written notice and/or instruction given to you by Pledgee. 

  

			
	 Sincerely,

		
	 [Pledgor]
	 	 Coley Pharmaceutical Group, Inc.

	
	/s/    ROBERT
FORRESTER        
	SVP

  

			
	 ACKNOWLEDGED AND AGREED TO:

	
	 General Electric Capital Corporation

		
	By:	 	 
		
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]