Document:

Document

 

Exhibit 10.3
EXTERRAN CORPORATION
AWARD NOTICE AND AGREEMENT
2021 COMMON STOCK AWARD FOR NON-EMPLOYEE DIRECTORS
Exterran Corporation (the “Company”) has granted to you an Other Stock-Based Award consisting of shares of Common Stock under the Exterran Corporation 2020 Omnibus Incentive Plan (as it may be amended from time to time, the “Plan”), subject to the terms and conditions set forth in this Award Notice (the “Award Notice”) and the Plan.  Unless otherwise defined herein, capitalized terms used in this Award Notice shall have the respective meanings ascribed to them in the Plan.  
The material terms of your Award are as follows:
1.Award.  You have been granted shares of the Company’s Common Stock (the “Award” or “Stock") subject to these terms and conditions. 
2.Grant Date.  The Grant Date of this Award is March 4, 2021. 
3.Stockholder Rights.  The Company will register the Stock in your name. You will have the right to vote your Stock and receive dividends, if any. 
4.No Right to Continued Service.  Nothing contained in this Award Notice shall confer upon you any right to continued service (as a member of the Board or otherwise), or limit in any way the right of the Board to terminate or modify the terms of your service at any time.
5.Data Privacy.  You consent to the collection, use, processing and transfer of your personal data as described in this paragraph.  You understand that the Company and/or its Affiliates hold certain personal information about you (including your name, address and telephone number, date of birth, social security number, social insurance number, etc.) for the purpose of administering the Plan (“Data”).  You also understand that the Company and/or its Affiliates will transfer this Data amongst themselves as necessary for the purpose of implementing, administering and managing your participation in the Plan, and that the Company and/or its Affiliates may also transfer this Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  You authorize them to receive, possess, use, retain and transfer the Data, in electronic or other form, for these purposes.  You also understand that you may, at any time, review the Data, require any necessary changes to the Data or withdraw your consent in writing by contacting the Company.  You further understand that withdrawing your consent may affect your ability to participate in the Plan.
6.Withholding. To the extent required by law, the Company and its Affiliates will withhold a sufficient number of shares of Common Stock that are otherwise issuable to you pursuant to your Award to satisfy any required tax withholding obligations. 
7.Plan Governs.  Your Award and this Award Notice are subject to the terms of the Plan, a copy of which is available at no charge through your stock account or which will be provided to you upon request.  All the terms and conditions of the Plan, as it may be amended from time to time, and any rules, guidelines and procedures which may from time to time be established pursuant to the Plan, are hereby incorporated into this Award Notice. In the event of a discrepancy between this Award Notice and the Plan, the Plan shall govern.
8.Adjustment.  This Award shall be subject to adjustment as provided in Paragraph XIII of the Plan.
9.Modifications.  The Company may, without your consent, make any change to this Award Notice that is not materially adverse to your rights under this Award Notice.

    
    1
Exterran Corporation 2021 Common Stock Award For Non-Employee Directors

 

10.Non-Solicitation/Confidentiality/Non-Disparagement Agreement.  The greatest assets of the Company and its affiliates (“Exterran” in this Section 10) are its employees, directors, customers, and confidential information.  In recognition of the increased risk of unfairly losing any of these assets, Exterran has adopted this Non-Solicitation/Confidentiality/Non-Disparagement Agreement as set forth in this Section 10, the terms of which you acknowledge and agree to in exchange for the consideration provided by this Award and access to the Company’s confidential information. 
a.In order to assist you with your duties as a member of the Board of Directors (“Director”), Exterran has provided and shall continue to provide you with access to confidential and proprietary operational information and other confidential information which is either information not known by actual or potential competitors and third parties or is proprietary information of Exterran (“Confidential Information”).  Such Confidential Information shall include, without limitation, information regarding Exterran’s customers and suppliers, employees, business operations, product lines, services, pricing and pricing formulae, machines and inventions, research, knowhow, manufacturing and fabrication techniques, engineering and product design specifications, financial information, business plans and strategies, information derived from reports and computer systems, work in progress, marketing and sales programs and strategies, cost data, methods of doing business, ideas, materials or information prepared or performed for, by or on behalf of Exterran.  You agree, during your service to Exterran and at all times thereafter, not to use, divulge, or furnish or to make accessible to any third party, company, or other entity or individual, without Exterran’s written consent, any Confidential Information of Exterran, except as required by your duties and responsibilities as a Director.
b.You agree that whenever your status as a Director ends, (i) you shall return to Exterran all documents containing or referring to Exterran’s Confidential Information as may be in your possession and/or control, with no request being required; and (ii) you shall return all Exterran computers, mobile computing devices, handheld devices, phones and similar equipment, hardware and software, and all Exterran property, files, records, documents, drawings, specifications, lists, equipment and other similar items relating to Exterran’s business coming into your possession and/or control during your service as a Director or otherwise, with no request being required. You further agree that if company property is in electronic form on a personal computer or device, you will delete all such information from the devices, unless you have reason to believe that you have the sole copy of such information, in which event you will promptly notify the Company so that appropriate action can be taken to transfer such information to the Company.
c.You agree that you will not, during your service to Exterran, and for one year thereafter, directly or indirectly, for any reason, for your own account or on behalf of or together with any other person, entity or organization (i) call on or otherwise solicit, cause, encourage or induce any natural person who is employed by Exterran in any capacity for employment by another company (including, for this purpose, contracting with any person who was an independent contractor (excluding consultant) of Exterran on the date of your employment or during the six (6)-month period preceding the termination of your employment), or (ii) solicit any established customer of Exterran or other service provider of Exterran or interfere with the relationship of Exterran with its established customers or other service providers without, in any of those prior cases, the prior written consent of Exterran.
d.You agree that (i) the terms of this Section 10 are reasonable and constitute an otherwise enforceable agreement to which the terms and provisions of this Section 10 are ancillary or a part of; (ii) the consideration provided by Exterran under this Section 10 is not illusory; (iii) the restrictions of this Section 10 are necessary and reasonable for the protection of the legitimate business interests and goodwill of Exterran; and (iv) the Award and other consideration given by Exterran under this Section 10, including without limitation, the provision by Exterran of Confidential Information to you, gives rise to Exterran’s interests in the covenants set forth in this Section 10.

    
    2
Exterran Corporation 2021 Common Stock Award For Non-Employee Directors

 

e.Subject to Section 11 below, you agree that you will not, directly or indirectly, make any public or private statements (whether orally, in writing, via electronic transmission or otherwise) that disparage, denigrate or malign Exterran or any of its affiliates; any of the businesses, activities, operations, affairs, reputations or prospects of any of the foregoing; or any of the respective officers, employees, directors, managers, partners, agents, members or shareholders of any of the foregoing.  
f.You and Exterran agree that it was both parties’ intention that the terms of this Section 10 are binding and enforceable.  You agree that if any covenant contained in this Section 10 is found by a court of competent jurisdiction to contain limitations as to time, geographic area, or scope of activity that are not reasonable and impose a greater restraint than is necessary to protect the goodwill or other business interests of Exterran, then the court shall reform the covenant to the extent necessary to cause the limitations contained in the covenant as to time, geographic area, and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill and other business interests of Exterran.
g.In the event that Exterran determines that you have breached or attempted or threatened to breach any term of this Section 10, in addition to any other remedies at law or in equity Exterran may have available to it, it is agreed that Exterran shall be entitled, upon application to any court of proper jurisdiction, to a temporary restraining order or preliminary injunction (without necessity of (i) proving irreparable harm, (ii) establishing that monetary damages are inadequate, or (iii) posting any bond with respect thereto) against you prohibiting such breach or attempted or threatened breach by proving only the existence of such breach or attempted or threatened breach.  You agree that the period during which the covenants contained in this Section 10 are in effect shall be computed by excluding from such computation any time during which you are in violation of any provision of this Section 10.
h.You understand that the obligations in this Section 10  are independent of and do not affect the enforceability of any other restrictive covenants by which you have agreed to be bound in any other agreement with Exterran.
i.Notwithstanding any other provision of this Award, the provisions of this Section 10 shall be governed, construed and enforced in accordance with the laws of the State of Texas, without giving effect to the conflict of law principles thereof.  Any action or proceeding seeking to enforce any provision of this Section 10 shall be brought only in the courts of the State of Texas or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of Texas, and the parties consent to the jurisdiction of such courts in any such action or proceeding and waive any objection to venue laid therein.
11.     Protected Rights.  Notwithstanding any other provision of this Award Notice, nothing contained in this Award Notice limits your ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (collectively, “Government Agencies”), or from providing truthful testimony in response to a lawfully issued subpoena or court order.  You understand that this Award Notice does not limit your ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Exterran.
12.    Defend Trade Secrets Act.  You are hereby notified that under the Defend Trade Secrets Act: (1) no person will be held criminally or civilly liable under federal or state trade secret law for disclosure of a trade secret (as defined in the Economic Espionage Act) that is: (A) made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; or, (B) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not 

    
    3
Exterran Corporation 2021 Common Stock Award For Non-Employee Directors

 

made public; and (2) a person who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the person and use the trade secret information in the court proceeding, if the person files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.
13.    Additional Information. If you require additional information concerning your Award, contact compensation@exterran.com, or log into your account online at www.NetBenefits.com.
    14.     Clawback. The Award shall be subject to the provisions of any clawback or recoupment policy adopted by the Company’s Board of Directors from time to time, including without limitation the Incentive-Based Compensation Recoupment Policy adopted by the Company’s Board of Directors effective on January 1, 2019.
    
15.    Acceptance.  If you agree with the terms and conditions of this Award, please indicate your acceptance by electronic, or wet, signature below.  

You/Member of Board of Directors of Exterran Corporation

By:______________________
Name: [Insert Name]

Date:____________________

    
    4
Exterran Corporation 2021 Common Stock Award For Non-Employee DirectorsExhibit 10.3

 

Execution
Version

 

INVESTOR RIGHTS AGREEMENT

 

THIS INVESTOR RIGHTS AGREEMENT
(this “Agreement”) is entered into as of April 28, 2021, by and among Stem, Inc. (f/k/a Star Peak Energy
Transition Corp.), a Delaware corporation (the “Company”), and the parties listed as Investors on Schedule I
hereto (each, including any person or entity who hereafter becomes a party to this Agreement pursuant to Section 7.2, an “Investor”
and collectively, the “Investors”).

 

WHEREAS, Company, Rollins
Road Acquisition Company (f/k/a Stem, Inc.), a Delaware corporation (“Stem”), and STPK Merger Sub Corp., a Delaware
limited liability company and wholly-owned subsidiary of Company (“Merger Sub”), have entered into that certain Agreement
and Plan of Merger, dated as of December 3, 2020 (as amended or supplemented from time to time, the “Merger Agreement”),
pursuant to which, among other things, immediately prior to the execution of this Agreement, Merger Sub merged with and into Stem (the
 “Merger”), with Stem surviving as a wholly owned subsidiary of Company;

 

WHEREAS, pursuant to
the transactions contemplated by the Merger Agreement and subject to the terms and conditions set forth therein, the pre-existing holders
of Stem securities received shares of common stock, par value $0.0001 per share, of Company (“Common Stock”) upon the
closing of such transactions;

 

WHEREAS, prior to the
Merger, Star Peak Sponsor, LLC (including any successor entity thereto, the “Sponsor”) held 9,589,626 shares of the
Company’s Class B common stock, par value $0.0001 per share (the “Class B Common Stock”) and other
holders held an aggregate of 80,000 shares of Class B Common Stock, which were received from the Sponsor;

 

WHEREAS, on August 17,
2020, Company and the Sponsor entered into that certain Private Placement Warrants Purchase Agreement, pursuant to which the Sponsor purchased
6,733,333 warrants in a private placement transaction occurring simultaneously with the closing of Company’s initial public offering
and on August 26, 2020, Sponsor purchased an additional 447,801 warrants, pursuant to the underwriters’ over-allotment option
(the “Private Placement Warrants”);

 

WHEREAS, upon consummation
of the Merger and immediately prior to the execution of this Agreement, each share of Class B Common Stock automatically converted
into one share of Class A common stock, par value $0.0001, on the terms and conditions provided in Company’s Amended and Restated
Certificate of Incorporation, as the same may be amended from time (the “Certificate of Incorporation”); and

 

WHEREAS, reference
is made to that certain Registration and Stockholder Rights Agreement, dated as of August 20, 2020 (the “Prior Agreement”),
by and among Company and the Existing Investors (as defined below) pursuant to which Company granted the Existing Investors certain registration
and stockholder rights with respect to certain securities of Company.

 

     

     

    

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             DEFINITIONS.
The following capitalized terms used herein have the following meanings:

 

“Addendum Agreement”
is defined in Section 7.2.

 

“Agreement”
is defined in the preamble to this Agreement.

 

“Block Trade”
means any non-marketed underwritten offering taking the form of a block trade to a financial institution, QIB or Institutional Accredited
Investor, bought deal, over-night deal or similar transaction that does not include “road show” presentations to potential
investors requiring substantial marketing effort from management over multiple days, the issuance of a “comfort letter” by
the Company’s auditors, and the issuance of legal opinions by the Company’s legal counsel.

 

“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law
to close.

 

“Certificate of Incorporation”
is defined in the preamble to this Agreement.

 

“Class B Common
Stock” is defined in the preamble to this Agreement.

 

“Class II Investor
Director” means Adam E. Daley and any director designated by the Sponsor to replace any Class II Investor Director pursuant
to Section 6.3.

 

“Class III Investor
Director” means Michael C. Morgan and any director designated by the Sponsor to replace any Class III Investor Director
pursuant to Section 6.3.

 

“Closing Date”
is defined in the Merger Agreement.

 

“Commission”
means the Securities and Exchange Commission, or any other Federal agency then administering the Securities Act or the Exchange Act.

 

“Common Stock”
is defined in the preamble to this Agreement.

 

“Company”
is defined in the preamble to this Agreement.

 

“Company Board”
is defined in Section 3.1.1.

 

“Demand Registration”
is defined in Section 2.2.1.

 

“Demanding Holder”
is defined in Section 2.2.1.

 

“Effectiveness Period”
is defined in Section 3.1.3.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder, all
as the same shall be in effect at the time.

 

    2

     

    

 

“Existing Investors” means any
holders of Founder Shares or Private Placement Warrants prior to the Merger and party hereto or any such holder’s Permitted Transferees.

 

“Form S-1”
means a Registration Statement on Form S-1.

 

“Form S-3”
means a Registration Statement on Form S-3 or any similar short-form registration that may be available at such time.

 

“Founder Shares” means those
shares of Class B Common Stock granted to Existing Investors prior to the date hereof and shall be deemed to include the shares of
Common Stock issued upon conversion thereof.

 

“Indemnified Party”
is defined in Section 4.3.

 

“Indemnifying Party”
is defined in Section 4.3.

 

“Initial Term”
means the period beginning on the Closing Date and ending on, in the case of the Class II Investor Director, the date of the second
annual meeting of stockholders of the Company following the Closing Date and, in the case of the Class III Investor Director, the
date of the third annual meeting of stockholders of the Company following the Closing Date.

 

“Insider Letter”
means that certain letter agreement, dated August 20, 2020, by and among the Company, the Sponsor and each of the Company’s
officers, directors and director nominees.

 

“Institutional Accredited
Investor” means an institutional “accredited” investor as defined in Rule 501(a) of Regulation D under
the Securities Act.

 

“Investor”
is defined in the preamble to this Agreement.

 

“Investor Director”
means the Class II Investor Director and the Class III Investor Director.

 

“Investor Indemnified
Party” is defined in Section 4.1.

 

“Lock-up Period”
is defined in the Insider Letter.

 

“Maximum Number of
Shares” is defined in Section 2.2.4.

 

“Merger Agreement”
is defined in the preamble to this Agreement.

 

“Merger Sub”
is defined in the preamble to this Agreement.

 

“New Registration
Statement” is defined in Section 2.1.4.

 

“Notices”
is defined in Section 7.5.

 

“Permitted Transferee”
means any person or entity to whom an Investor is permitted to transfer Registrable Securities prior to the expiration of any applicable
lock-up period under the Insider Letter and/or any other applicable agreement between such Investor and Company, and any transferee thereafter.

 

    3

     

    

 

“Piggy-Back Registration”
is defined in Section 2.3.1.

 

“Prior Agreement”
is defined in the preamble to this Agreement.

 

“Private Placement
Warrants” is defined in the preamble to this Agreement.

 

“Pro Rata”
is defined in Section 2.2.4.

 

“QIB” means
 “qualified institutional buyer” as defined in Rule 144A under the Securities Act.

 

“Registrable Securities”
means (i) the Founder Shares, (ii) the Private Placement Warrants (including any shares of Common Stock issued or issuable upon
the exercise of any Private Placement Warrants), (iii) any outstanding shares of the Common Stock or any other equity security of
the Company held by an Investor as of the date of this Agreement and (iv) any other equity security of the Company issued or issuable
with respect to the securities referenced in clauses (i) through (iii), including by way of any share split, share dividend or other
distribution, recapitalization, share exchange, share reconstruction, amalgamation, contractual control arrangement or similar event.
As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when: (a) a Registration Statement
with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have been sold,
transferred, disposed of or exchanged pursuant to such Registration Statement; (b) such securities shall have been otherwise transferred,
new certificates for such securities not bearing a legend restricting further transfer shall have been delivered by Company and subsequent
public distribution of shall not require registration under the Securities Act; or (c) such securities shall have ceased to be outstanding.

 

“Registration”
mean a registration effected by preparing and filing a registration statement or similar document in compliance with the requirements
of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such registration statement becoming
effective.

 

“Registration Statement”
means a registration statement filed by Company or its successor with the Commission in compliance with the Securities Act and the rules and
regulations promulgated thereunder for a public offering and sale of equity securities, or securities or other obligations exercisable
or exchangeable for, or convertible into, equity securities (other than a registration statement on Form S-4 or Form S-8, or
their successors, or any registration statement covering only securities proposed to be issued in exchange for securities or assets of
another entity).

 

“Replacement Nominee”
is defined in Section 6.8

 

“Resale Shelf Registration
Statement” is defined in Section 2.1.1.

 

“SEC Guidance”
is defined in Section 2.1.4.

 

    4

     

    

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder, all as the
same shall be in effect at the time.

 

“Sponsor”
is defined in the preamble to this Agreement.

 

“Stem”
is defined in the preamble to this Agreement.

 

“Underwriter”
means a securities dealer who purchases any Registrable Securities as principal in an underwritten offering and not as part of such dealer’s
market-making activities.

 

“Underwritten Demand
Registration” shall mean an underwritten public offering of Registrable Securities pursuant to a Demand Registration, as amended
or supplemented, that is a fully marketed underwritten offering for which Company management is obligated to, as required by Section 3.1.13
hereof, participate in “road show” presentations to potential investors requiring substantial marketing effort from management,
and subject to diligence customary in underwritten offerings, including the issuance of a “comfort letter” by the Company’s
auditors and the issuance of legal opinions by the Company’s legal counsel.

 

“Underwritten Takedown”
shall mean an underwritten public offering of Registrable Securities pursuant to the Resale Shelf Registration Statement, as amended or
supplemented that requires the issuance of a “comfort letter” by the Company’s auditors and the issuance of legal opinions
by the Company’s legal counsel.

 

2.             REGISTRATION
RIGHTS.

 

2.1           Resale
Shelf Registration Rights.

 

2.1.1            Registration
Statement Covering Resale of Registrable Securities. Provided compliance by the Investors with Section 3.4, Company shall
prepare and file or cause to be prepared and filed with the Commission, no later than forty five (45) days following the Closing Date,
a Registration Statement on Form S-3 or its successor form, or, if the Company is ineligible to use Form S-3, a Registration
Statement on Form S-1, for an offering to be made on a continuous basis pursuant to Rule 415 of the Securities Act registering
the resale from time to time by Investors of all of the Registrable Securities then held by such Investors that are not covered by an
effective resale registration statement (the “Resale Shelf Registration Statement”). Company shall use reasonable best
efforts to cause the Resale Shelf Registration Statement to be declared effective as soon as possible after filing, and in no event later
than the date that the Lock-up Period expires, and once effective, to keep the Resale Shelf Registration Statement continuously effective
under the Securities Act at all times until the expiration of the Effectiveness Period. In the event that Company files a Form S-1
pursuant to this Section 2.1, Company shall use its commercially reasonable efforts to convert the Form S-1 to a Form S-3
as soon as practicable after Company is eligible to use Form S-3.

 

2.1.2            Notification
and Distribution of Materials. Company shall notify the Investors in writing of the effectiveness of the Resale Shelf Registration
Statement and shall furnish to them, without charge, such number of copies of the Resale Shelf Registration Statement (including any amendments,
supplements and exhibits), the prospectus contained therein (including each preliminary prospectus and all related amendments and supplements)
and any documents incorporated by reference in the Resale Shelf Registration Statement or such other documents as the Investors may reasonably
request in order to facilitate the sale of the Registrable Securities in the manner described in the Resale Shelf Registration Statement.

 

    5

     

    

 

2.1.3            Amendments
and Supplements. Subject to the provisions of Section 2.1.1 above, Company shall promptly prepare and file with the Commission
from time to time such amendments and supplements to the Resale Shelf Registration Statement and prospectus used in connection therewith
as may be necessary to keep the Resale Shelf Registration Statement effective and to comply with the provisions of the Securities Act
with respect to the disposition of all Registrable Securities during the Effectiveness Period.

 

2.1.4            Registration
of Additional Registrable Securities.

 

(i)            If
a Resale Shelf Registration Statement is then effective, within ten (10) Business Days after written request therefore by a Permitted
Transferee holding Registrable Securities not covered by an effective Resale Shelf Registration Statement, the Company shall file a prospectus
supplement or current report on Form 8-K to add such Permitted Transferee as a selling stockholder in such Resale Shelf Registration
Statement to the extent permitted under the rules and regulations promulgated by the Commission.

 

(ii)           The
registration rights granted pursuant to the provisions of this Section 2.1.4 shall be in addition to the registration rights
granted pursuant to the provisions of Section 2.2 and Section 2.3.

 

2.1.5            Reduction
of Shelf Offering. Notwithstanding the registration obligations set forth in this Section 2.1, in the event the Commission
informs Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale
as a secondary offering on a single registration statement, Company agrees to promptly (i) inform each of the holders thereof and
use its commercially reasonable efforts to file amendments to the Resale Shelf Registration Statement as required by the Commission and/or
(ii) withdraw the Resale Shelf Registration Statement and file a new registration statement (a “New Registration Statement”),
in either case covering the maximum number of Registrable Securities permitted to be registered by the Commission, on Form S-1, Form S-3
or such other form available to register for resale the Registrable Securities as a secondary offering; provided, however, that prior
to filing such amendment or New Registration Statement, Company shall be obligated to use its commercially reasonable efforts to advocate
with the Commission for the registration of all of the Registrable Securities in accordance with any publicly-available written or oral
guidance, comments, requirements or requests of the Commission staff (the “SEC Guidance”), including, without limitation,
the Manual of Publicly Available Telephone Interpretations D.29. Notwithstanding any other provision of this Agreement, if any SEC Guidance
sets forth a limitation of the number of Registrable Securities permitted to be registered on a particular Registration Statement as a
secondary offering (and notwithstanding that Company used diligent efforts to advocate with the Commission for the registration of all
or a greater number of Registrable Securities), unless otherwise directed in writing by a holder as to its Registrable Securities, the
number of Registrable Securities to be registered on such Registration Statement will be reduced on a Pro Rata basis, subject to a determination
by the Commission that certain Investors must be reduced first based on the number of Registrable Securities held by such Investors. In
the event Company amends the Resale Shelf Registration Statement or files a New Registration Statement, as the case may be, under clauses
(i) or (ii) above, Company will use its commercially reasonable efforts to file with the Commission, as promptly as allowed
by Commission or SEC Guidance provided to Company or to registrants of securities in general, one or more registration statements on Form S-1,
Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on
the Resale Shelf Registration Statement, as amended, or the New Registration Statement.

 

    6

     

    

 

2.1.6            Notice
of Certain Events. Company shall promptly notify the Investors in writing of any request by the Commission for any amendment or supplement
to, or additional information in connection with, the Resale Shelf Registration Statement required to be prepared and filed hereunder
(or prospectus relating thereto). Company shall promptly notify each Investor in writing of the filing of the Resale Shelf Registration
Statement or any prospectus, amendment or supplement related thereto or any post-effective amendment to the Resale Shelf Registration
Statement and the effectiveness of any post-effective amendment.

 

2.1.7            Underwritten
Takedown. If Company shall receive a request from the Existing Investors that hold at least a majority-in-interest of the outstanding
Registrable Securities held by all Existing Investors that Company effect an Underwritten Takedown of all or any portion of the requesting
Existing Investor’s Registrable Securities, then Company shall promptly give notice of such requested Underwritten Takedown at least
seven (7) Business Days prior to the anticipated filing date of the prospectus or supplement relating to such Underwritten Takedown
to the other Investors and thereupon shall use its reasonable best efforts to effect, as expeditiously as possible, the offering in such
Underwritten Takedown of:

 

(i)            subject
to the restrictions set forth in Section 2.2.4, all Registrable Securities for which the requesting holder has requested such
offering under Section 2.1.6, and

 

(ii)           subject
to the restrictions set forth in Section 2.2.4, all other Registrable Securities that any holders of Registrable Securities
have requested Company to offer by request received by Company within two (2) Business Days after such holders receive Company’s
notice of the Underwritten Takedown, all to the extent necessary to permit the disposition (in accordance with the intended methods thereof
as aforesaid) of the Registrable Securities so to be offered.

 

(a)       Promptly
after the expiration of the two-Business Day-period referred to in Section 2.1.7(ii), Company will notify all selling holders
of the identities of the other selling holders and the number of shares of Registrable Securities requested to be included therein.

 

(b)       Company
shall only be required to effectuate three Underwritten Takedowns by the Investors within any 12-month period after giving effect to Section 2.2.1(i).

 

2.1.8            Block
Trade. If Company shall receive a request from the holders of Registrable Securities with an estimated market value of at least $10,000,000
that Company effect the sale of all or any portion of the Registrable Securities in a Block Trade, then Company shall, as expeditiously
as possible, effect the offering in such Block Trade of the Registrable Securities for which such requesting holder has requested such
offering under Section 2.1.7.

 

    7

     

    

 

2.1.9            Selection
of Underwriters. Selling holders holding a majority in interest of the Registrable Securities requested to be sold in an Underwritten
Takedown shall have the right to select an Underwriter or Underwriters in connection with such Underwritten Takedown, which Underwriter
or Underwriters shall be reasonably acceptable to Company. In connection with an Underwritten Takedown, Company shall enter into customary
agreements (including an underwriting agreement in customary form) and take such other actions as are reasonably required in order to
expedite or facilitate the disposition of the Registrable Securities in such Underwritten Takedown, including, if necessary, the engagement
of a “qualified independent underwriter” in connection with the qualification of the underwriting arrangements with the Financial
Industry Regulatory Authority, Inc.

 

2.1.10          Underwritten
Takedowns effected pursuant to this Section 2.1 shall be counted as Demand Registrations effected pursuant to Section 2.2.

 

2.2           Demand
Registration.

 

2.2.1            Request
for Registration. At any time and from time to time after the expiration of any lock-up period to which an Existing Investor’s
shares are subject, if any, provided compliance by the Existing Investors with Section 3.4, and provided further there is
not an effective Resale Shelf Registration Statement available for the resale of the Registrable Securities pursuant to Section 2.1,
Existing Investors that hold a majority-in-interest of the outstanding Registrable Securities held by all Existing Investors may make
a written demand for Registration under the Securities Act of all or any portion of their Registrable Securities on Form S-1 or any
similar long-form Registration or, if then available, on Form S-3. Each registration requested pursuant to this Section 2.2.1
is referred to herein as a “Demand Registration”. Any demand for a Demand Registration shall specify the number of
shares of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. Company will notify all
Investors that are holders of Registrable Securities of the demand, and each such holder of Registrable Securities who wishes to include
all or a portion of such holder’s Registrable Securities in the Demand Registration (each such holder including shares of Registrable
Securities in such registration, a “Demanding Holder”) shall so notify Company within fifteen (15) days after the receipt
by the holder of the notice from Company. Upon any such request, the Demanding Holders shall be entitled to have their Registrable Securities
included in the Demand Registration, subject to Section 2.2.4 and the provisos set forth in Section 3.1.1. Company
shall not be obligated to effect: (i) more than three Demand Registration during any 12-month period or (ii) any Demand Registration
pursuant to this Section 2.2.1 at any time there is an effective Resale Shelf Registration Statement on file with the Commission
pursuant to Section 2.1.

 

    8

     

    

 

2.2.2            Effective
Registration. A Registration will not count as a Demand Registration until the Registration Statement filed with the Commission with
respect to such Demand Registration has been declared effective and Company has complied with all of its obligations under this Agreement
with respect thereto; provided, however, that if, after such Registration Statement has been declared effective, the offering of Registrable
Securities pursuant to a Demand Registration is interfered with by any stop order or injunction of the Commission or any other governmental
agency or court, the Registration Statement with respect to such Demand Registration will be deemed not to have been declared effective,
unless and until, (i) such stop order or injunction is removed, rescinded or otherwise terminated, and (ii) a majority-in-interest
of the Demanding Holders thereafter elect to continue the offering; provided, further, that Company shall not be obligated to file a second
Registration Statement until a Registration Statement that has been filed is counted as a Demand Registration or is terminated.

 

2.2.3            Underwritten
Demand Registration. If the Demanding Holders so elect and such holders so advise Company as part of their written demand for a Demand
Registration, the offering of such Registrable Securities pursuant to such Demand Registration shall be in the form of an Underwritten
Demand Registration. In such event, the right of any holder to include its Registrable Securities in such registration shall be conditioned
upon such holder’s participation in such underwriting and the inclusion of such holder’s Registrable Securities in the underwriting
to the extent provided herein. All Demanding Holders proposing to distribute their Registrable Securities through such underwriting shall
enter into an underwriting agreement in customary form with the Underwriter or Underwriters selected for such underwriting by the holders
initiating the Demand Registration, and subject to the approval of Company. The parties agree that, in order to be effected, any Underwritten
Demand Registration must be reasonably expected to result in aggregate proceeds to the selling shareholders of at least $10,000,000.

 

2.2.4            Reduction
of Offering. If the managing Underwriter or Underwriters for a Underwritten Demand Registration advises Company and the Demanding
Holders in writing that, in such Underwriter’s or Underwriters’ opinion, the dollar amount or number of shares of Registrable
Securities which the Demanding Holders desire to sell, taken together with all other Common Stock or other securities which Company desires
to sell and the Common Stock, if any, as to which registration has been requested pursuant to written contractual piggy-back registration
rights held by other shareholders of Company who desire to sell, exceeds the maximum dollar amount or maximum number of shares that can
be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method, or the probability
of success of such offering (such maximum dollar amount or maximum number of shares, as applicable, the “Maximum Number of Shares”),
then Company shall include in such registration: (i) first, the Registrable Securities as to which Demand Registration has been requested
by the Existing Investors that initiated the request for a Demand Registration (pro rata in accordance with the number of shares that
each such person has requested be included in such registration, regardless of the number of shares held by each such person (such proportion
is referred to herein as “Pro Rata”)) that can be sold without exceeding the Maximum Number of Shares; (ii) second,
to the extent the Maximum Number of Shares has not been reached, the Registrable Securities, Pro Rata, as to which Demand Registration
has been requested by any other Demanding Holders; (iii) third, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clauses (i) and (ii), the Common Stock or other securities that Company desires to sell; and (iv) fourth,
any Common Stock or other securities for the account of other persons that Company is obligated to register pursuant to written contractual
arrangements with such persons, as to which “piggy-back” registration has been requested by the holders thereof that can be
sold without exceeding the Maximum Number of Shares.

 

    9

     

    

 

2.2.5            Withdrawal.
A majority-in-interest of the Demanding Holders may elect to withdraw from such Demand Registration by giving written notice to Company
and the Underwriter or Underwriters of their request to withdraw prior to the effectiveness of the Registration Statement filed with the
Commission with respect to such Demand Registration. If the majority-in-interest of the Demanding Holders withdraws from a proposed offering,
then either the Demanding Holders shall reimburse Company for the costs associated with the withdrawn registration (in which case such
registration shall not count as a Demand Registration provided for in Section 2.2.1) or the withdrawn registration shall count
as a Demand Registration provided for in Section 2.2.1.

 

2.3           Piggy-Back
Registration.

 

2.3.1            Piggy-Back
Rights. If at any time after the expiration of any applicable lock-up period to which an Investor’s shares are subject, if any,
provided compliance by the Investors with Section 3.4, Company proposes to file a Registration Statement under the Securities
Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible
into, equity securities, by Company for its own account or for shareholders of Company for their account (or by Company and by shareholders
of Company including, without limitation, pursuant to Section 2.2.1), other than a Registration Statement (i) filed in
connection with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of securities solely to Company’s
existing shareholders, (iii) for an offering of debt that is convertible into equity securities of Company or (iv) for a dividend
reinvestment plan, then Company shall (a) give written notice of such proposed filing to the holders of Registrable Securities as
soon as practicable but in no event less than ten (10) days before the anticipated filing date, which notice shall describe the amount
and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing
Underwriter or Underwriters, if any, of the offering, and (b) offer to the holders of Registrable Securities in such notice the opportunity
to register the sale of such number of shares of Registrable Securities as such holders may request in writing within five (5) days
following receipt of such notice (a “Piggy-Back Registration”). Company shall cause such Registrable Securities to
be included in such registration and shall use its best efforts to cause the managing Underwriter or Underwriters of a proposed underwritten
offering to permit the Registrable Securities requested to be included in a Piggy-Back Registration on the same terms and conditions as
any similar securities of Company and to permit the sale or other disposition of such Registrable Securities in accordance with the intended
method(s) of distribution thereof. All holders of Registrable Securities proposing to distribute their securities through a Piggy-Back
Registration that involves an Underwriter or Underwriters shall enter into an underwriting agreement in customary form with the Underwriter
or Underwriters selected for such Piggy-Back Registration.

 

2.3.2            Reduction
of Offering. If the managing Underwriter or Underwriters for a Piggy-Back Registration that is to be an underwritten offering advises
Company and the holders of Registrable Securities in writing that the dollar amount or number of shares of Common Stock which Company
desires to sell, taken together with Common Stock, if any, as to which registration has been demanded pursuant to written contractual
arrangements with persons other than the holders of Registrable Securities hereunder and the Registrable Securities as to which registration
has been requested under this Section 2.3, exceeds the Maximum Number of Shares, then Company shall include in any such registration:

 

    10

     

    

 

(a)       If
the registration is undertaken for Company’s account: (i) first, the Common Stock or other securities that Company desires
to sell that can be sold without exceeding the Maximum Number of Shares; and (ii) second, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clause (i), the Common Stock or other securities, if any, comprised of Registrable Securities,
as to which registration has been requested pursuant to the terms hereof, that can be sold without exceeding the Maximum Number of Shares,
Pro Rata; and (iii) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (i) and
(ii), the Common Stock or other securities for the account of other persons that Company is obligated to register pursuant to written
contractual piggy-back registration rights with such persons and that can be sold without exceeding the Maximum Number of Shares; and

 

(b)       If
the registration is a “demand” registration undertaken at the demand of persons other than either the holders of Registrable
Securities or Company, (i) first, the Common Stock or other securities for the account of the demanding persons that can be sold
and the Common Stock or other securities, if any, comprised of Registrable Securities, Pro Rata, as to which registration has been requested
pursuant to the terms hereof, that can be sold without exceeding the Maximum Number of Shares; (ii) second, to the extent that the
Maximum Number of Shares has not been reached under the foregoing clause (i), the Common Stock or other securities that Company desires
to sell that can be sold without exceeding the Maximum Number of Shares; and (iii) third, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (i) and (ii), the Common Stock or other securities for the account of other
persons that Company is obligated to register pursuant to written contractual arrangements with such persons, that can be sold without
exceeding the Maximum Number of Shares.

 

2.3.3            Withdrawal.
Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities in any
Piggy-Back Registration by giving written notice to Company of such request to withdraw prior to the effectiveness of the Registration
Statement, if such offering is pursuant to a Demand Registration, or prior to the public announcement of the offering, if such offering
is pursuant to an Underwritten Takedown. Company (whether on its own determination or as the result of a withdrawal by persons making
a demand pursuant to written contractual obligations) may withdraw a Registration Statement at any time prior to the effectiveness of
such Registration Statement. Notwithstanding any such withdrawal, Company shall pay all expenses incurred by the holders of Registrable
Securities in connection with such Piggy-Back Registration as provided in Section 3.3.

 

3.             REGISTRATION
PROCEDURES.

 

3.1           Filings;
Information. Whenever Company is required to effect the registration of any Registrable Securities pursuant to Section 2,
Company shall use its commercially reasonable best efforts to effect the registration and sale of such Registrable Securities in accordance
with the intended method(s) of distribution thereof as expeditiously as practicable, and in connection with any such request:

 

    11

     

    

 

3.1.1            Filing
Registration Statement. Company shall use its reasonable best efforts to, as expeditiously as possible after receipt of a request
for a Demand Registration pursuant to Section 2.1, prepare and file with the Commission a Registration Statement on any form
for which Company then qualifies or which counsel for Company shall deem appropriate and which form shall be available for the sale of
all Registrable Securities to be registered thereunder in accordance with the intended method(s) of distribution thereof, and shall
use its reasonable best efforts to cause such Registration Statement to become effective and use its reasonable best efforts to keep it
effective for the Effectiveness Period; provided, however, that Company shall have the right to defer any Demand Registration for up to
sixty (60) days, and any Piggy-Back Registration for such period as may be applicable to deferment of any Demand Registration to which
such Piggy-Back Registration relates, in each case if Company shall furnish to the holders a certificate signed by the Chief Executive
Officer or Chairman of Company stating that, in the good faith judgment of the Board of Directors of Company (the “Company Board”),
it would be materially detrimental to Company and its shareholders for such Registration Statement to be effected at such time.

 

3.1.2            Copies.
Company shall, prior to filing a Registration Statement or prospectus, or any amendment or supplement thereto, furnish without charge
to the holders of Registrable Securities included in such registration, and such holders’ legal counsel, copies of such Registration
Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case, including all exhibits
thereto and documents incorporated by reference therein), the prospectus included in such Registration Statement (including each preliminary
prospectus), and such other documents as the holders of Registrable Securities included in such registration or legal counsel for any
such holders may request in order to facilitate the disposition of the Registrable Securities owned by such holders.

 

3.1.3            Amendments
and Supplements. Company shall prepare and file with the Commission such amendments, including post-effective amendments, and supplements
to such Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement
effective and in compliance with the provisions of the Securities Act until all Registrable Securities and other securities covered by
such Registration Statement have been disposed of in accordance with the intended method(s) of distribution set forth in such Registration
Statement or such securities have been withdrawn (the “Effectiveness Period”).

 

3.1.4            Notification.
After the filing of a Registration Statement, Company shall promptly, and in no event more than three (3) Business Days after such
filing, notify the holders of Registrable Securities included in such Registration Statement of such filing, and shall further notify
such holders promptly and confirm such advice in writing in all events within three (3) Business Days of the occurrence of any of
the following: (i) when such Registration Statement becomes effective; (ii) when any post-effective amendment to such Registration
Statement becomes effective; (iii) the issuance or threatened issuance by the Commission of any stop order (and Company shall take
all actions required to prevent the entry of such stop order or to remove it if entered); and (iv) any request by the Commission
for any amendment or supplement to such Registration Statement or any prospectus relating thereto or for additional information or of
the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered
to the purchasers of the securities covered by such Registration Statement, such prospectus will not contain an untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading,
and promptly make available to the holders of Registrable Securities included in such Registration Statement any such supplement or amendment;
except that before filing with the Commission a Registration Statement or prospectus or any amendment or supplement thereto, including
documents incorporated by reference, Company shall furnish to the holders of Registrable Securities included in such Registration Statement
and to the legal counsel for any such holders, copies of all such documents proposed to be filed sufficiently in advance of filing to
provide such holders and legal counsel with a reasonable opportunity to review such documents and comment thereon.

 

    12

     

    

 

3.1.5            Securities
Laws Compliance. Company shall use its reasonable best efforts to (i) register or qualify the Registrable Securities covered
by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United States as the holders
of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution) may reasonably request
and (ii) take such action necessary to cause such Registrable Securities covered by the Registration Statement to be registered with
or approved by such other governmental authorities as may be necessary by virtue of the business and operations of Company and do any
and all other acts and things that may be necessary or advisable to enable the holders of Registrable Securities included in such Registration
Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided, however, that Company shall not
be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph
or subject itself to taxation in any such jurisdiction.

 

3.1.6            Agreements
for Disposition. Company shall enter into customary agreements (including, if applicable, an underwriting agreement in customary form)
and take such other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities.
The representations, warranties and covenants of Company in any underwriting agreement which are made to or for the benefit of any Underwriters,
to the extent applicable, shall also be made to and for the benefit of the holders of Registrable Securities included in such registration
statement, and the representations, warranties and covenants of the holders of Registrable Securities included in such registration statement
in any underwriting agreement which are made to or for the benefit of any Underwriters, to the extent applicable, shall also be made to
and for the benefit of Company.

 

3.1.7            Comfort
Letter. In the event of an Underwritten Takedown or an Underwritten Demand Registration, Company shall obtain a “cold comfort”
letter from Company’s independent registered public accountants in the event of an underwritten offering, and a customary “bring-down”
thereof, in customary form and covering such matters of the type customarily covered by “cold comfort” letters, as the managing
Underwriter may reasonably request, and reasonably satisfactory to a majority-in-interest of the participating holders. For the avoidance
of doubt, this Section 3.1.7 shall not apply to Block Trades.

 

3.1.8            Opinions
and Negative Assurance Letters. In the event of an Underwritten Takedown or an Underwritten Demand Registration, on the date the Registrable
Securities are delivered for sale pursuant to any Registration, Company shall obtain an opinion and negative assurances letter, each dated
such date, of counsel representing Company for the purposes of such Registration, including an opinion of local counsel if applicable,
addressed to the holders, the placement agent or sales agent, if any, and the Underwriters, if any, covering such legal matters with respect
to such Registration in respect of which such opinion is being given as the holders, placement agent, sales agent, or Underwriter may
reasonably request and as are customarily included in such opinions, and reasonably satisfactory to a majority in interest of the participating
holders. For the avoidance of doubt, this Section 3.1.8 shall not apply to Block Trades.

 

    13

     

    

 

3.1.9            Cooperation.
The principal executive officer of Company, the principal financial officer of Company, the principal accounting officer of Company and
all other officers and members of the management of Company shall cooperate fully in any offering of Registrable Securities hereunder,
which cooperation shall include, without limitation, the preparation of the Registration Statement with respect to such offering and all
other offering materials and related documents, and participation in meetings with Underwriters, attorneys, accountants and potential
investors.

 

3.1.10          Transfer
Agent. Company shall provide and maintain a transfer agent and registrar for the Registrable Securities.

 

3.1.11          Records.
Upon execution of confidentiality agreements, Company shall make available for inspection by the holders of Registrable Securities included
in such Registration Statement, any Underwriter participating in any disposition pursuant to such registration statement and any attorney,
accountant or other professional retained by any holder of Registrable Securities included in such Registration Statement or any Underwriter,
all financial and other records, pertinent corporate documents and properties of Company, as shall be necessary to enable them to exercise
their due diligence responsibility, and cause Company’s officers, directors and employees to supply all information requested by
any of them in connection with such Registration Statement.

 

3.1.12          Earnings
Statement. Company shall comply with all applicable rules and regulations of the Commission and the Securities Act, and make
available to its shareholders, as soon as practicable, an earnings statement covering a period of twelve (12) months, which earnings statement
shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

 

3.1.13          Road
Show. If an offering pursuant to this Agreement is conducted as an Underwritten Takedown or Underwritten Demand Registration and involves
Registrable Securities with an aggregate offering price (before deduction of underwriting discounts) expected to exceed $50,000,000, Company
shall use its reasonable best efforts to make available senior executives of the Company to participate in customary “road show”
presentations that may be reasonably requested by the Underwriter in such offering.

 

3.1.14          Listing.
Company shall use its reasonable best efforts to cause all Registrable Securities included in any Registration Statement to be listed
on such exchanges or otherwise designated for trading in the same manner as similar securities issued by Company are then listed or designated.

 

3.2           Obligation
to Suspend Distribution. Upon receipt of any notice from Company of the happening of any event of the kind described in Section 3.1.4(iv),
or, upon any suspension by Company, pursuant to a written insider trading compliance program adopted by the Company Board, of the ability
of all “insiders” covered by such program to transact in Company’s securities because of the existence of material non-public
information, each holder of Registrable Securities included in any registration shall immediately discontinue disposition of such Registrable
Securities pursuant to the Registration Statement covering such Registrable Securities until such holder receives the supplemented or
amended prospectus contemplated by Section 3.1.4(iv) or the restriction on the ability of “insiders” to transact
in Company’s securities is removed, as applicable, and, if so directed by Company, each such holder will deliver to Company all
copies, other than permanent file copies then in such holder’s possession, of the most recent prospectus covering such Registrable
Securities at the time of receipt of such notice. The foregoing right to delay or suspend may be exercised by Company for no longer than
180 days in any consecutive 12-month period.

 

    14

     

    

 

3.3           Registration
Expenses. Company shall bear all costs and expenses incurred in connection with the Resale Shelf Registration Statement pursuant to
Section 2.1, any Demand Registration pursuant to Section 2.2.1, any Underwritten Takedown pursuant to Section 2.1.6,
any Block Trade pursuant to Section 2.1.7, any Piggy-Back Registration pursuant to Section 2.3, and all expenses
incurred in performing or complying with its other obligations under this Agreement, whether or not the Registration Statement becomes
effective, including, without limitation: (i) all registration and filing fees; (ii) fees and expenses of compliance with securities
or “blue sky” laws (including fees and disbursements of counsel in connection with blue sky qualifications of the Registrable
Securities); (iii) printing expenses; (iv) Company’s internal expenses (including, without limitation, all salaries and
expenses of its officers and employees); (v) the fees and expenses incurred in connection with the listing of the Registrable Securities
as required by Section 3.1.12; (vi) Financial Industry Regulatory Authority fees; (vii) fees and disbursements of
counsel for Company and fees and expenses for independent certified public accountants retained by Company; (viii) the fees and expenses
of any special experts retained by Company in connection with such registration; and (ix) the reasonable fees and expenses of one
legal counsel selected by the holders of a majority-in-interest of the Registrable Securities included in such registration. Company shall
have no obligation to pay any underwriting discounts or selling commissions attributable to the Registrable Securities being sold by the
holders thereof, which underwriting discounts or selling commissions shall be borne by such holders, but Company shall pay any underwriting
discounts or selling commissions attributable to the securities it sells for its own account.

 

3.4           Information.
The holders of Registrable Securities shall promptly provide such information as may reasonably be requested by Company, or the managing
Underwriter, if any, in connection with the preparation of any Registration Statement, including amendments and supplements thereto, in
order to effect the registration of any Registrable Securities under the Securities Act and in connection with Company’s obligation
to comply with Federal and applicable state securities laws.

 

3.5           Other
Obligations. At any time and from time to time after the expiration of any Lock-up Period to which such shares are subject, if any,
in connection with a sale or transfer of Registrable Securities exempt from registration under the Securities Act or through any broker-dealer
transactions described in the plan of distribution set forth within any prospectus and pursuant to the Registration Statement of which
such prospectus forms a part, Company shall, subject to the receipt of customary documentation required from the applicable holders in
connection therewith, (i) promptly instruct its transfer agent to remove any restrictive legends applicable to the Registrable Securities
being sold or transferred and (ii) cause its legal counsel to deliver the necessary legal opinions, if any, to the transfer agent
in connection with the instruction under subclause (i). In addition, Company shall cooperate reasonably with, and take such customary
actions as may reasonably be requested by such holders in connection with the aforementioned sales or transfers.

 

    15

     

    

 

3.6           Legend
Removal Obligations. If any Investor (i) proposes to sell or transfer any Registrable Securities pursuant to an effective Registration
Statement or pursuant to Rule 144 or (ii) holds Registrable Securities that are eligible for sale under Rule 144 without
the requirement for the Company to be in compliance with current public information required under Rule 144 as to such Registrable
Securities and without volume or manner of sale restrictions, then the Company shall, at the sole expense of the Company, promptly take
any and all actions necessary or reasonably requested by such Investor to facilitate or permit the removal of any restrictive legends
from such Registrable Securities, including, without limitation, the delivery of any opinions of counsel or instruction letters to the
transfer agent as are requested by the same. Each Investor agrees to provide the Company, its counsel or the transfer agent with the evidence
reasonably requested by it to cause the removal of such legends, including, as may be appropriate, any information the Company reasonably
deems necessary to determine that such legend is no longer required under the Securities Act or applicable state laws.

 

4.             INDEMNIFICATION
AND CONTRIBUTION.

 

4.1           Indemnification
by Company. Company agrees to indemnify and hold harmless each Investor and each other holder of Registrable Securities, and each
of their respective officers, employees, affiliates, directors, partners, members, attorneys and agents, and each person, if any, who
controls an Investor and each other holder of Registrable Securities (within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) (each, an “Investor Indemnified Party”), from and against any expenses, losses, judgments, claims,
damages or liabilities, whether joint or several, arising out of or based upon any untrue statement (or allegedly untrue statement) of
a material fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the Securities
Act, any preliminary prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment or supplement
to such Registration Statement, or arising out of or based upon any omission (or alleged omission) to state a material fact required to
be stated therein or necessary to make the statements therein not misleading, or any violation by Company of the Securities Act or any
rule or regulation promulgated thereunder applicable to Company and relating to action or inaction required of Company in connection
with any such registration; and Company shall promptly reimburse the Investor Indemnified Party for any legal and any other expenses reasonably
incurred by such Investor Indemnified Party in connection with investigating and defending any such expense, loss, judgment, claim, damage,
liability or action; provided, however, that Company will not be liable in any such case to the extent that any such expense, loss, claim,
damage or liability arises out of or is based upon any untrue statement or allegedly untrue statement or omission or alleged omission
made in such Registration Statement, preliminary prospectus, final prospectus, or summary prospectus, or any such amendment or supplement,
in reliance upon and in conformity with information furnished to Company, in writing, by such selling holder expressly for use therein,
or is based on any selling holder’s violation of the federal securities laws (including Regulation M) or failure to sell the Registrable
Securities in accordance with the plan of distribution contained in the prospectus.

 

    16

     

    

 

4.2           Indemnification
by Holders of Registrable Securities. Each selling holder of Registrable Securities will, in the event that any Registration is being
effected under the Securities Act pursuant to this Agreement of any Registrable Securities held by such selling holder, indemnify and
hold harmless Company, each of its directors and officers, and each other selling holder and each other person, if any, who controls another
selling holder within the meaning of the Securities Act, against any losses, claims, judgments, damages or liabilities, whether joint
or several, insofar as such losses, claims, judgments, damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or allegedly untrue statement of a material fact contained in any Registration Statement under which the sale
of such Registrable Securities was registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus
contained in the Registration Statement, or any amendment or supplement to the Registration Statement, or arise out of or are based upon
any omission or the alleged omission to state a material fact required to be stated therein or necessary to make the statement therein
not misleading, if the statement or omission was made in reliance upon and in conformity with information furnished in writing to Company
by such selling holder expressly for use therein and shall reimburse Company, its directors and officers, and each other selling holder
or controlling person for any legal or other expenses reasonably incurred by any of them in connection with investigation or defending
any such loss, claim, damage, liability or action. Each selling holder’s indemnification obligations hereunder shall be several
and not joint and shall be limited to the amount of any net proceeds actually received by such selling holder.

 

4.3           Conduct
of Indemnification Proceedings. Promptly after receipt by any person of any notice of any loss, claim, damage or liability or any
action in respect of which indemnity may be sought pursuant to Sections 4.1 or 4.2, such person (the “Indemnified
Party”) shall, if a claim in respect thereof is to be made against any other person for indemnification hereunder, notify such
other person (the “Indemnifying Party”) in writing of the loss, claim, judgment, damage, liability or action; provided,
however, that the failure by the Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party from any
liability which the Indemnifying Party may have to such Indemnified Party hereunder, except and solely to the extent the Indemnifying
Party is actually prejudiced by such failure. If the Indemnified Party is seeking indemnification with respect to any claim or action
brought against the Indemnified Party, then the Indemnifying Party shall be entitled to participate in such claim or action, and, to the
extent that it wishes, jointly with all other Indemnifying Parties, to assume control of the defense thereof with counsel satisfactory
to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume control of the defense
of such claim or action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses subsequently
incurred by the Indemnified Party in connection with the defense thereof other than reasonable costs of investigation; provided, however,
that in any action in which both the Indemnified Party and the Indemnifying Party are named as defendants, the Indemnified Party shall
have the right to employ separate counsel (but no more than one such separate counsel, which counsel is reasonably acceptable to the Indemnifying
Party) to represent the Indemnified Party and its controlling persons who may be subject to liability arising out of any claim in respect
of which indemnity may be sought by the Indemnified Party against the Indemnifying Party, with the fees and expenses of such counsel to
be paid by such Indemnifying Party if, based upon the written opinion of counsel of such Indemnified Party, representation of both parties
by the same counsel would be inappropriate due to actual or potential differing interests between them. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, consent to entry of judgment or effect any settlement of any claim or pending or threatened
proceeding in respect of which the Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such judgment or settlement includes an unconditional release of such Indemnified Party from all liability arising
out of such claim or proceeding.

 

    17

     

    

 

4.4           Contribution.

 

4.4.1            If
the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is unavailable to any Indemnified Party
in respect of any loss, claim, damage, liability or action referred to herein, then each such Indemnifying Party, in lieu of indemnifying
such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage,
liability or action in such proportion as is appropriate to reflect the relative fault of the Indemnified Parties and the Indemnifying
Parties in connection with the actions or omissions which resulted in such loss, claim, damage, liability or action, as well as any other
relevant equitable considerations. The relative fault of any Indemnified Party and any Indemnifying Party shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by such Indemnified Party or such Indemnifying Party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

4.4.2            The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.4 were determined
by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in
Section 4.4.1.

 

4.4.3            The
amount paid or payable by an Indemnified Party as a result of any loss, claim, damage, liability or action referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such
Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 4.4,
no holder of Registrable Securities shall be required to contribute any amount in excess of the dollar amount of the net proceeds (after
payment of any underwriting fees, discounts, commissions or taxes) actually received by such holder from the sale of Registrable Securities
which gave rise to such contribution obligation. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

5.             RULE
144. Company covenants that it shall file any reports required to be filed by it under the Securities Act and the Exchange Act and
shall take such further action as the holders of Registrable Securities may reasonably request, all to the extent required from time to
time to enable such holders to sell Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 under the Securities Act, as such Rules may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission.

 

6.             INVESTOR
RIGHTS.

 

6.1           The
parties hereto agree and acknowledge that (i) effective as of immediately following the Closing Date, the Company Board was reconstituted
to be comprised of seven directors, divided into three classes of directors, in accordance with the terms of the Certificate of Incorporation
and (ii) the Investor Directors were designated by the Sponsor.

 

    18

     

    

 

6.2           During
the time in which an Investor Director is serving his or her Initial Term on the Company Board, in addition to any vote or consent of
the Company Board or the shareholders of the Company required by applicable law or the Company’s Certificate of Incorporation or
second amended and restated bylaws, and notwithstanding anything to the contrary in this Agreement, any action by the Company Board to
increase or decrease the size of the Company Board, shorten the term of any director on the Company Board or amend the Certificate of
Incorporation or the second amended and restated bylaws with the effect of de-staggering the Company Board or providing for the establishment
of any classes of directors inconsistent with this Section 6 shall require the prior written consent of the Sponsor.

 

6.3           In
the event that a vacancy is created on the Company Board at any time as a result of the death, disability, retirement, removal or resignation
of any Investor Director during such Investor Director’s Initial Term, the Sponsor may designate a new individual to fill such vacancy,
and, subject to Section 6.7, the Company shall cause such designated individual to be appointed to the Company Board to fill
such vacancy as promptly as practicable and to serve in the class of directors of the Company Board in which such vacancy was created
for the remainder of the term of such class. Nothing in this Agreement shall require any Investor Director to resign, or for the Sponsor
to remove any Investor Director from office or replace any Investor Director.

 

6.4           As
promptly as reasonably practicable following the request of any Investor Director, the Company shall enter into an indemnification agreement
with such Investor Director, in the form entered into with the other members of the Company Board. The Company shall pay the reasonable,
documented out-of-pocket expenses incurred by the Investor Director in connection with his or her services provided to or on behalf of
the Company, including attending meetings or events attended explicitly on behalf of the Company at the Company’s request.

 

6.5           The
Company shall (i) purchase directors’ and officers’ liability insurance in an amount determined by the Company Board
to be reasonable and customary and (ii) for so long as an Investor Director serves as a Director of the Company, maintain such coverage
with respect to such Investor Director; provided that upon removal or resignation of such Investor Director for any reason, the
Company shall take all actions reasonably necessary to extend such directors’ and officers’ liability insurance coverage for
a period of not less than six years from any such event in respect of any act or omission occurring at or prior to such event.

 

6.6           For
so long as an Investor Director serves as a Director of the Company, the Company shall not amend, alter or repeal any right to indemnification
or exculpation covering or benefiting any Director nominated pursuant to this Agreement as and to the extent consistent with applicable
law, whether such right is contained in the Company’s Certificate of Incorporation or second amended and restated bylaws, each as
amended, or another document (except to the extent such amendment or alteration permits the Company to provide broader indemnification
or exculpation rights on a retroactive basis than permitted prior thereto).

 

    19

     

    

 

6.7           Any
individual that is designated by the Sponsor to replace any Investor Director pursuant to the Sponsor’s rights under Section 6.3
(a “Replacement Nominee”) will be subject to the Company’s customary due diligence process, including its review
of a completed questionnaire and a background check. Based on the foregoing, the Company may object to any Replacement Nominee provided
(i) it does so in good faith, and (ii) such objection is based upon any of the following: (a) such Replacement Nominee
was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other
minor offenses), (b) such Replacement Nominee was the subject of any order, judgment, or decree not subsequently reversed, suspended
or vacated of any court of competent jurisdiction, permanently or temporarily enjoining such proposed director from, or otherwise limiting,
the following activities: (1) engaging in any type of business practice, (2) engaging in any activity in connection with the
purchase or sale of any security or in connection with any violation of federal or state securities laws, (3) such Replacement Nominee
was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring,
suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in clause (ii)(b),
or to be associated with persons engaged in such activity, (4) such Replacement Nominee was found by a court of competent jurisdiction
in a civil action or by the Commission to have violated any federal or state securities law, and the judgment in such civil action or
finding by the Commission has not been subsequently reversed, suspended or vacated, or (5) such Replacement Nominee was the subject
of, or a party to any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended
or vacated, relating to a violation of any federal or state securities laws or regulations. In the event the Company Board (or any committee
thereof) reasonably finds the Replacement Nominee to be unsuitable based upon one or more of the foregoing clauses (1) through (5) and
reasonably objects to the Replacement Nominee, the Sponsor shall be entitled to designate a different individual to the Company Board
within 30 calendar days of the Company’s notice to such Investors of its objection and such individual shall be subject to the review
process outlined above.

 

6.8           During
the time in which an Investor Director is serving his or her Initial Term, the Company shall not (i) solicit proxies or participate
in a solicitation, (ii) assist any person in taking or planning any action, or (iii) cooperate in any way with, assist or participate
in, knowingly encourage or otherwise facilitate or encourage any effort or attempt, in each case, that is reasonably likely to impair,
delay, frustrate or otherwise serve to interfere with any provision of this Section 6.

 

7.             MISCELLANEOUS.

 

7.1           Other
Registration Rights and Arrangements. Except for such sections that expressly survive termination, the parties hereby terminate the
Prior Agreement, which shall be of no further force and effect and is hereby superseded and replaced in its entirety by this Agreement.
Company shall not hereafter enter into any agreement with respect to its securities which is inconsistent with or violates the rights
granted to the holders of Registrable Securities in this Agreement and in the event of any conflict between any such agreement or agreements
and this Agreement, the terms of this Agreement shall prevail.

 

    20

     

    

 

7.2           Assignment;
No Third-Party Beneficiaries. This Agreement and the rights, duties and obligations of Company hereunder may not be assigned or delegated
by Company in whole or in part. This Agreement and the rights, duties and obligations of the holders of Registrable Securities hereunder
may be freely assigned or delegated by such holder of Registrable Securities in conjunction with and to the extent of any permitted transfer
of Registrable Securities by any such holder. This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit
to a Permitted Transferee of each of the parties hereto and their respective successors and assigns and the holders of Registrable Securities
and their respective successors and permitted assigns. This Agreement is not intended to confer any rights or benefits on any persons
that are not party hereto other than as expressly set forth in Section 4 and this Section 7.2. The rights of a
holder of Registrable Securities under this Agreement may be transferred by such a holder to a Permitted Transferee; provided, however,
that such Permitted Transferee has executed and delivered to Company a properly completed agreement to be bound by the terms of this Agreement
substantially in form attached hereto as Exhibit A (an “Addendum Agreement”), and the transferor shall have delivered
to Company no later than thirty (30) days following the date of the transfer, written notification of such transfer setting forth the
name of the transferor, the name and address of the transferee, and the number of Registrable Securities so transferred. The execution
of an Addendum Agreement shall constitute a permitted amendment of this Agreement.

 

7.3           Amendments
and Modifications. Upon the written consent of Company and the holders of at least a majority in interest of the Registrable Securities
at the time in question compliance with any of the provisions, covenants and conditions set forth in this Agreement may be waived, or
any of such provisions, covenants or conditions may be amended or modified; provided, however, that notwithstanding the foregoing, any
amendment hereto or waiver hereof that adversely affects an Investor, solely in his, her or its capacity as a holder of the shares of
capital stock of Company, in a manner that is materially different from other Investors (in such capacity) shall require the consent of
such Investor so affected. No course of dealing between any Investor or Company and any other party hereto or any failure or delay on
the part of an Investor or Company in exercising any rights or remedies under this Agreement shall operate as a waiver of any rights or
remedies of any Investor or Company. No single or partial exercise of any rights or remedies under this Agreement by a party shall operate
as a waiver or preclude the exercise of any other rights or remedies hereunder or thereunder by such party.

 

7.4           Term.
This Agreement shall terminate on the date as of which there shall be no Registrable Securities outstanding.

 

    21

     

    

 

7.5           Notices.
All notices, demands, requests, consents, approvals or other communications (collectively, “Notices”) required or permitted
to be given hereunder or which are given with respect to this Agreement shall be in writing and shall be personally served, delivered
by reputable air courier service with charges prepaid, or transmitted by facsimile or email, addressed as set forth below, or to such
other address as such party shall have specified most recently by written notice. Notice shall be deemed given (i) on the date of
service or transmission if personally served or transmitted by telegram, telex or facsimile; provided, that if such service or transmission
is not on a Business Day or is after normal business hours, then such notice shall be deemed given on the next Business Day or (ii) one
Business Day after being deposited with a reputable courier service with an order for next-day delivery, to the parties as follows:

 

If to Company:

 

Stem, Inc. (f/k/a Star Peak Energy Transition Corp.)

100 Rollins Road

Millbrae, CA 94030

 

Attention: William Bush

Email: bill.bush@stem.com

 

with a copy to:

 

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, NY 10166-0193

Attention: John Gaffney

Email: jgaffney@gibsondunn.com

 

If to an Investor, to the
address set forth under such Investor’s signature to this Agreement or to such Investor’s address as found in Company’s
books and records.

 

7.6           Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable
term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to
such invalid or unenforceable provision as may be possible that is valid and enforceable.

 

7.7           Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which taken together shall
constitute one and the same instrument.

 

7.8           Entire
Agreement. This Agreement (including all agreements entered into pursuant hereto and all certificates and instruments delivered pursuant
hereto and thereto) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede all prior and
contemporaneous agreements, representations, understandings, negotiations and discussions between the parties, whether oral or written,
including, without limitation the Prior Agreement.

 

[Signature Page Follows]

 

    22

     

    

 

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

 

	 	STEM, INC. (f/k/a STAR PEAK ENERGY TRANSITION CORP.):
	 	 	 
	 	By:	/s/ Eric Scheyer
	 	 	Name: Eric Scheyer
	 	 	Title: Chief Executive Officer

 

Signature Page to Investor Rights
Agreement

 

    

     

    

 

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

 

	 	INVESTORS:
	 	 	 
	 	STAR PEAK SPONSOR LLC:
	 	 	 
	 	By:	MTP Energy Management LLC
	 	Its:	Sole Member
	 	 	 
	 	By:	Magnetar Financial LLC
	 	Its:	Sole Member
	 	 	 
	 	/s/ Eric Scheyer
	 	 	Name: Eric Scheyer
	 	 	Title: Authorized Signatory

 

Signature Page to Investor Rights
Agreement

 

    

     

    

 

Exhibit A

 

Addendum Agreement

 

This Addendum Agreement (“Addendum
Agreement”) is executed on __________________, 20___, by the undersigned (the “New Holder”) pursuant to the
terms of that certain Investor Rights and Agreement, dated as of April 28, 2021 (the “Agreement”), by and among
Company and the Investors identified therein, as such Agreement may be amended, supplemented or otherwise modified from time to time.
Capitalized terms used but not defined in this Addendum Agreement shall have the respective meanings ascribed to such terms in the Agreement.
By the execution of this Addendum Agreement, the New Holder agrees as follows:

 

1.             Acknowledgment.
New Holder acknowledges that New Holder is acquiring certain Common Stock of Company (the “Shares”) as a transferee
of such Shares from a party in such party’s capacity as a holder of Registrable Securities under the Agreement, and after such transfer,
New Holder shall be considered an “Investor” and a holder of Registrable Securities for all purposes under the Agreement.

 

2.             Agreement.
New Holder hereby (a) agrees that the Shares shall be bound by and subject to the terms of the Agreement and (b) adopts the
Agreement with the same force and effect as if the New Holder were originally a party thereto.

 

3.             Notice.
Any notice required or permitted by the Agreement shall be given to New Holder at the address or facsimile number listed below New Holder’s
signature below.

 

	NEW HOLDER:	 	ACCEPTED AND AGREED:	 
	 	 	 	 
	Print Name:	 	 	Stem, Inc. (f/k/a Star Peak Energy Transition Corp.)	 

 

	By:	 	 	By:	 	 

 

    

     

    

 

Schedule
I

 

		1.	Star Peak Sponsor LLC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]