Document:

Exhibit 10.12

 

TANGOE, INC.

 

EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

This Eighth Amended and Restated Investor Rights Agreement (the “Agreement”), dated as of July 28, 2008, is entered into by and among Tangoe, Inc., a Delaware corporation (the “Company”), and the individuals and entities listed on Exhibit A attached hereto (the “Purchasers”).  This Agreement amends and restates that certain Seventh Amended and Restated Investor Rights Agreement dated as of March 9, 2007 among the Company and the investors listed on Exhibit A thereto.

 

WHEREAS, the Company and certain purchasers listed therein have entered into a Series F Convertible Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”); and

 

WHEREAS, the Company and the Purchasers desire to provide for certain arrangements with respect to (i) the registration of shares of capital stock of the Company under the Securities Act (as defined below), (ii) certain Purchasers’ right of first refusal with respect to certain issuances of securities of the Company, and (iii) certain covenants of the Company;

 

WHEREAS, the Company and certain of the Purchasers are parties to the Seventh Amended and Restated Investors’ Right Agreement dated as of March 9, 2007 (the “Prior Agreement”);

 

WHEREAS, the Prior Agreement may be amended with the written consent of the Company and Purchasers, including Edison Venture Fund IV, L.P. and Edison Venture Fund IV SBIC, L.P (together, “Edison”).  North Atlantic Venture Fund III, L.P. and North Atlantic SBIC IV, L.P. (together “North Atlantic”).  Sevin Rosen Fund VI L.P., Sevin Rosen Fund VI Affiliates L.P., Sevin Rosen Bayless Management Company L.P., Sevin Rosen Fund VIII L.P. and Sevin Rosen Fund VIII Affiliates L.P. (together, “Sevin Rosen”), holding Shares representing at least 67% of the voting power of all Shares held by Purchasers; provided that any amendment, termination or waiver of the terms of Section 3 (or a defined term used therein) shall instead require the written consent of the Company and Qualified Purchasers, including Edison, North Atlantic and Sevin Rosen, holding shares representing at least 67% of the voting power of all Shares then held by Qualified Purchasers;

 

WHEREAS, the undersigned Purchasers represent at least 67% of the voting power of all Shares held by Purchasers and the Qualified Purchasers, including Edison, North Atlantic and Sevin Rosen;

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the parties hereto agree as follows:

 

1.                                       Certain Definitions.

 

As used in this Agreement, the following terms shall have the following respective meanings:

 

 

“Available Undersubscription Amount” means the difference between the total of all of the Basic Amounts available for purchase by Qualified Purchasers pursuant to Section 3.1 and the Basic Amounts subscribed for pursuant to Section 3.1.

 

“Basic Amount” means, with respect to a Qualified Purchaser, its pro rata portion of the Offered Securities determined by multiplying the number of Offered Securities by a fraction, the numerator of which is the aggregate number of shares of Common Stock then held by such Qualified Purchaser (giving effect to the conversion into or exercise or exchange for Common Stock of all Shares and Warrants then held by such Qualified Purchaser) and the denominator of which is the total number of shares of Common Stock then held by all of the Qualified Purchasers (giving effect to the conversion into Common Stock of all Shares and Warrants then held by all of the Qualified Purchasers).

 

“Commission” means the Securities and Exchange Commission, or any other federal agency at the time administering the Securities Act.

 

“Common Stock” means the common stock, par value $.0001 per share, of the Company.

 

“Company” has the meaning ascribed to it in the introductory paragraph hereto.

 

“Company Sale” means: (a) a merger or consolidation in which (i) the Company is a constituent party, or (ii) a Company Subsidiary is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or consolidation involving the Company or a Company Subsidiary in which the holders of capital stock of the Company immediately prior to such merger or consolidation continue to hold immediately following such merger or consolidation more than 50% by voting power of the capital stock of or ownership interest in (A) the surviving or resulting entity or (B) if the surviving or resulting entity is a wholly owned subsidiary of another entity immediately following such merger or consolidation, the parent entity of such surviving or resulting entity; or (b) the sale, in a single transaction or series of related transactions, (i) by the Company of all or substantially all the assets of the Company (except where such sale is to a wholly owned subsidiary of the Company) or (ii) by the stockholders of the Company of more than 50% by voting power of the then-outstanding capital stock of the Company.

 

“Company Subsidiary” means any corporation, partnership, trust, limited liability company or other non-corporate business enterprise in which the Company (or another Company Subsidiary) holds stock or other ownership interests representing (a) more that 50% of the voting power of all outstanding stock or ownership interests of such entity or (b) the right to receive more than 50% of the net assets of such entity available for distribution to the holders of outstanding stock or ownership interests upon a liquidation or dissolution of such entity.

 

“Confidential Information” means any information that is labeled as confidential, proprietary or secret which a Purchaser obtains from the Company pursuant to financial statements, reports and other materials provided by the Company to such Purchaser pursuant to this Agreement or pursuant to visitation or inspection rights granted hereunder.

 

 

“Edison” means Edison Venture Fund IV, L.P. and Edison Venture Fund IV SBIC, L.P.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations of the Commission issued under such act, as they each may, from time to time, be in effect.

 

“Founder” means each of (i) Gary Martino, (ii) Albert Subbloie and (iii) Charles Gamble (together, the “Founders”).

 

“Indemnified Party” means a party entitled to indemnification pursuant to Section 2.5.

 

“Indemnifying Party” means a party obligated to provide indemnification pursuant to Section 2.5.

 

“Independent Director” means any member of the Board of Directors of the Company who is not an employee of the Company or an employee, partner or member of any holder of Shares or of shares of the Common Stock of the Company.

 

“Initial Public Offering” means the initial underwritten public offering of shares of Common Stock pursuant to an effective Registration Statement.

 

“Initiating Holders” means the Purchasers initiating a request for registration pursuant to Section 2.1(a) or 2.1(b), as the case may be.

 

“IGC” means Investor Growth Capital Limited and Investor Group, L.P., together with their Affiliates.

 

“Merger Agreement” means that certain Agreement and Plan of Merger dated as of March 1, 2007 by and among Traq Wireless, Inc., Orange Acquisition Corp. and the Company.

 

“North Atlantic” means North Atlantic Venture Fund III, L.P. and North Atlantic SBIC IV, L.P., together with their Affiliates.

 

“Notice of Acceptance” means a written notice from a Purchaser to the Company containing the information specified in Section 3.1(b).

 

“Offer” means a written notice of any proposed or intended issuance, sale or exchange of Offered Securities containing the information specified in Section 3.1(a).

 

“Offered Securities” means (i) any shares of its Common Stock, (ii) any other equity securities of the Company, including, without limitation, shares of preferred stock, (iii) any option, warrant or other right to subscribe for, purchase or otherwise acquire any equity securities of the Company, or (iv) any debt securities convertible into capital stock of the Company.

 

 

“Other Holders” means holders of securities of the Company (other than Purchasers) who are entitled, by contract with the Company, to have securities included in a Registration Statement.

 

“Prior Agreement” has the meaning ascribed to it in the recitals hereto.

 

“Prospectus” means the prospectus included in any Registration Statement, as amended or supplemented by an amendment or prospectus supplement, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Purchaser” has the meaning ascribed to it in the introductory paragraph hereto.

 

“Qualified Purchaser” means a Purchaser that is an “accredited investor” within the meaning of Rule 501(a) under the Securities Act.

 

“Refused Securities” means those Offered Securities as to which a Notice of Acceptance has not been given by the Qualified Purchasers pursuant to Section 3.1.

 

“Registrable Shares” means (a) the shares of Common Stock issued or issuable upon conversion of the Shares, (b) any other shares of Common Stock owned by the Purchasers or its transferees, (c) any shares of Common Stock issued or issuable upon the exercise of the Warrants and (d) any other shares of Common Stock issued in respect of such shares (because of stock splits, stock dividends, reclassifications, recapitalizations or similar events); provided, however, that shares of Common Stock which are Registrable Shares shall cease to be Registrable Shares upon any sale pursuant to a Registration Statement or Rule 144 under the Securities Act.  Wherever reference is made in this Agreement to a request or consent of holders of a certain percentage of Registrable Shares, the determination of such percentage shall be calculated as if all Shares and Warrants held by such holders have been fully converted, exercised or exchanged for Registrable Shares.

 

“Registration Statement” means a registration statement filed by the Company with the Commission for a public offering and sale of securities of the Company (other than a registration statement on Form S-8 or Form S-4, or their successors, or any other form for a similar limited purpose, or any registration statement covering only securities proposed to be issued in exchange for securities or assets of another corporation).

 

“Registration Expenses” means all expenses incurred by the Company in complying with the provisions of Section 2, including, without limitation, all registration and filing fees, exchange listing fees, printing expenses, fees and expenses of counsel for the Company and the fees and expenses of one counsel selected by the Selling Stockholders to represent the Selling Stockholders, state Blue Sky fees and expenses, and the expense of any special audits incident to or required by any such registration, but excluding underwriting discounts, selling commissions and the fees and expenses of Selling Stockholders’ own counsel (other than the counsel selected to represent all Selling Stockholders).

 

“Restated Certificate” means the Company’s Amended and Restated Certificate of Incorporation as of the date hereof, as such may be amended from time to time.

 

 

“Securities Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the Commission issued under the Securities Act of 1933, as they each may, from time to time, be in effect.

 

“Selling Stockholder” means any Purchaser owning Registrable Shares included in a Registration Statement.

 

“Series 1 Preferred Stock” means shares of Series 1 Convertible Preferred Stock, par value $.0001 per share, of the Company

 

“Series 1 Holders” means those stockholders who received Series 1 Preferred Stock under the terms of the Merger Agreement.

 

“Series 2 Preferred Stock” means shares of Series 2 Convertible Preferred Stock, par value $.0001 per share, of the Company

 

“Series 2 Holders” means those stockholders who received Series 2 Preferred Stock under the terms of the Merger Agreement.

 

“Series A Holders” means those stockholders who purchased Series A Preferred Stock under the terms of those certain Series A Convertible Securities Purchase Agreements dated December 6, 2000 and February 25, 2002, respectively.

 

“Series A Preferred Stock” means shares of Series A Convertible Preferred Stock, par value $.0001 per share, of the Company.

 

“Series B Holders” means those stockholders who purchased Series B Preferred Stock under the terms of that certain Series B Convertible Stock Purchase Agreement dated August 7, 2002.

 

“Series B Preferred Stock” means shares of Series B Convertible Preferred Stock, par value $.0001 per share, of the Company.

 

“Series C Holders” means those stockholders who purchased Series C Preferred Stock under the terms of that certain Series C Convertible Stock Purchase Agreement dated February 6, 2004.

 

“Series C Preferred Stock” means shares of Series C Convertible Preferred Stock, par value $.0001 per share, of the Company.

 

“Series D Holders” means those stockholders who purchased Series D Preferred Stock under the terms of that certain Series D Convertible Stock Purchase Agreement dated March 28, 2005.

 

“Series D Preferred Stock” means shares of Series D Convertible Preferred Stock, par value $.0001 per share, of the Company.

 

 

“Series D1 Holders” means those stockholders who purchased Series D Preferred Stock under the terms of that certain Series D Convertible Stock Purchase Agreement dated December 29, 2005, which Series D Preferred Stock were previously exchanged for Series D1 Preferred Stock.

 

“Series D1 Preferred Stock” means shares of Series D1 Convertible Preferred Stock, par value $.0001 per share, of the Company.

 

“Series E Holders” means those stockholders who purchased Series E Preferred Stock under the terms of that certain Series E Convertible Preferred Stock Purchase Agreement dated August 14, 2006.

 

“Series E Preferred Stock” means shares of Series E Convertible Preferred Stock, par value $.0001 per share, of the Company.

 

“Series F Holders” means those stockholders who purchased Series F Preferred Stock under the terms of the Purchase Agreement.

 

“Series F Preferred Stock” means shares of Series F Convertible Preferred Stock, par value $.0001 per share, of the Company.

 

“Sevin Rosen” means, collectively, Sevin Rosen Fund VI L.P., Sevin Rosen Fund VI Affiliates L.P., Sevin Rosen Bayless Management Company L.P., Sevin Rosen Fund VIII L.P. and Sevin Rosen Fund VIII Affiliates L.P.

 

“Shares” means the shares of the Company’s Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series D1 Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series 1 Preferred Stock and Series 2 Preferred Stock.

 

“Undersubscription Amount” means, with respect to a Qualified Purchaser, any additional portion of the Offered Securities attributable to the Basic Amounts of other Qualified Purchasers as such Qualified Purchaser indicates it will purchase or acquire should the other Qualified Purchasers subscribe for less than their Basic Amounts.

 

“Warrants” means (i) those warrants to purchase Common Stock of the Company issued to the Purchasers pursuant to the terms of the Series A Purchase Agreements dated December 6, 2000 and February 25, 2002; (ii) that certain warrant to purchase Series B Preferred Stock issued to Comerica Bank, pursuant to the Loan and Security Agreement dated March 28, 2003, between the Company and Comerica Bank; (iii) that certain warrant to purchase Series C Preferred Stock issued to Comerica Bank, pursuant to the Third Amendment and Waiver to Loan and Security Agreement dated March 30, 2004, between the Company and Comerica Bank; (iv) that certain warrant to purchase Series D Preferred Stock issued to Comerica Bank, pursuant to the Fourth Amendment and Waiver to Loan and Security Agreement dated March 28, 2005, between the Company and Comerica Bank; (v) that certain warrant to purchase Common Stock of the Company issued to the Bank of Southern Connecticut on November 17, 2005, in connection with the Loan Agreement of the same date; (vi) that certain warrant to purchase Common Stock of the Company to be issued to Albert Subbloie, Jr., and dated as of November 

 

 

17, 2005; (vii) those warrants to purchase Common Stock of the Company issued to the Investors party to the Securities Purchase Agreement dated May 23, 2006; (viii) that certain warrant to purchase Series 1 Preferred Stock of the Company held by Comerica Incorporated and assumed by the Company pursuant to the Merger Agreement; (ix) that certain warrant to purchase Series 2 Preferred Stock of the Company held by Venture Lending & Leasing IV, Inc. and assumed by the Company pursuant to the Merger Agreement; (x) that certain warrant to purchase Series 2 Preferred Stock of the Company held by Venture Lending & Leasing IV, Inc. and assumed by the Company pursuant to the Merger Agreement; (xi) that certain warrant to purchase Series E Preferred Stock issued to Orix Venture Finance LLC on March 9, 2008, in connection with the Loan and Security Agreement of the same date; (xii) that certain warrant to purchase Common Stock issued to Clifton Myers Enterprises, Inc. on March 12,2008; and (viii) that certain warrant to purchase Series F Preferred Stock issued to Orix Venture Finance LLC on July 25, 2008, in connection with the Limited Consent and First Amendment to Loan Agreement of the same date.

 

2.                                       Registration Rights.

 

2.1                                 Required Registrations.

 

(a)                                  At any time after six months after the closing of the Initial Public Offering, (i) Edison may request, in writing, that the Company effect the registration on Form S-l or Form S-2 (or any successor form) covering at least 20% of the Registrable Shares owned by Edison, or any lesser percentage if the aggregate value of the offering is at least $5,000,000 (based on the market price or fair value on the date of such request), (ii) North Atlantic may request, in writing, that the Company effect the registration on Form S-1 or Form S-2 (or any successor form) covering at least 20% of the Registrable Shares owned by North Atlantic, or any lesser percentage if the aggregate value of the offering is at least $5,000,000 (based on the market price or fair value on the date of such request), (iii) Sevin Rosen may request, in writing, that the Company effect the registration on Form S-1 or Form S-2 (or any successor form) covering at least 20% of the Registrable Shares owned by Sevin Rosen, or any lesser percentage if the aggregate value of the offering is at least $5,000,000 (based on the market price or fair value on the date of such request) and (iv) IGC may request, in writing, that the Company effect the registration on Form S-1 or Form S-2 (or any successor form) covering at least 20% of the Registrable Shares owned by IGC, or any lesser percentage if the aggregate value of the offering is at least $5,000,000 (based on the market price or fair value on the date of such request).

 

(b)                                 At any time after the Company becomes eligible to file a Registration Statement on Form S-3 (or any successor form relating to secondary offerings), a Purchaser or Purchasers holding Registrable Shares may request, in writing, that the Company effect the registration on Form S-3 (or such successor form), of Registrable Shares having an aggregate value of at least $1,000,000 (based on the public market price on the date of such request).

 

(c)                                  Upon receipt of any request for registration pursuant to this Section 2, the Company shall promptly give written notice of such proposed registration to all other Purchasers.  Such Purchasers shall have the right, by giving written notice to the Company within 30 days after the Company provides its notice, to elect to have included in such registration those Registrable Shares as such Purchasers may request in such notice of election, 

 

 

subject in the case of an underwritten offering to the terms of Section 2.1(d).  Thereupon, the Company shall, as expeditiously as possible, use its best efforts to effect the registration on an appropriate registration form of all Registrable Shares which the Company has been requested to so register; provided, however, that in the case of a registration requested under Section 2.1(b), the Company will only be obligated to effect such registration on Form S-3 (or any successor form).

 

(d)                                 If the Initiating Holders intend to distribute the Registrable Shares covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Section 2.1(a) or (b), as the case may be, and the Company shall include such information in its written notice referred to in Section 2.1(c).  In such event, (i) the right of any other Purchaser to include its Registrable Shares in such registration pursuant to Section 2.1(a) or (b), as the case may be, shall be conditioned upon such other Purchaser’s participation in such underwriting on the terms set forth herein, and (ii) all Purchasers including Registrable Shares in such registration shall enter into an underwriting agreement upon customary terms with the underwriter or underwriters managing the offering; provided that such underwriting agreement shall not provide for indemnification or contribution obligations on the part of the Purchasers materially greater than the obligations of the Purchasers pursuant to Section 2.5.  The Initiating Holders shall have the right to select the managing underwriter(s) for any underwritten offering requested pursuant to Section 2.1(a) or (b), subject to the approval of the Company, which approval will not be unreasonably withheld, conditioned or delayed.  If any Purchaser who has requested inclusion of its Registrable Shares in such registration as provided above disapproves of the terms of the underwriting, such person may elect, by written notice to the Company, to withdraw its Registrable Shares from such Registration Statement and underwriting.  If the managing underwriter advises the Company in writing that marketing factors require a limitation on the number of shares to be underwritten, the number of Registrable Shares to be included in the Registration Statement and underwriting shall be allocated among all Purchasers requesting registration in proportion, as nearly as practicable, to the respective number of Registrable Shares held by them on the date of the request for registration made by the Initiating Holders pursuant to Section 2.1(a) or (b), as the case may be.  If any Purchaser would thus be entitled to include more Registrable Shares than such Purchaser requested to be registered, the excess shall be allocated among other requesting Purchasers pro rata in the manner described in the preceding sentence.

 

(e)                                  The Company shall not be required to effect more than one registration pursuant to each of subsections 2.1(a)(i), (ii), (iii) and (iv).  In addition, the Company shall not be required to effect any registration within six months after the effective date of the Registration Statement relating to the Initial Public Offering.  For purposes of this Section 2.1(e), a Registration Statement shall not be counted until such time as such Registration Statement has been declared effective by the Commission (unless the Initiating Holders withdraw their request for such registration (other than as a result of information concerning the business or financial condition of the Company which is made known to the Purchasers after the date on which such registration was requested) and elect not to pay the Registration Expenses therefor pursuant to Section 2.4).  For purposes of this Section 2.1(e), a Registration Statement shall not be counted if, as a result of an exercise of the underwriter’s cut-back provisions, less than 50% of the total number of Registrable Shares that Edison, North Atlantic, Sevin Rosen, IGC or Purchasers, as the case may be, have requested to be included in such Registration Statement are so included.

 

 

(f)                                    If at the time of any request to register Registrable Shares by Initiating Holders pursuant to this Section 2.1, the Company is engaged or has plans to engage in a registered public offering or is engaged in any other activity which, in the good faith determination of the Company’s Board of Directors, would be adversely affected by the requested registration, then the Company may at its option direct that such request be delayed for a period not in excess of 120 days from the date of such request, such right to delay a request to be exercised by the Company not more than once in any 12-month period.

 

2.2                                 Incidental Registration.

 

(a)                                  Whenever the Company proposes to file a Registration Statement (other than a Registration Statement filed pursuant to Section 2.1) at any time and from time to time, it will, prior to such filing, give written notice to all Purchasers of its intention to do so.  Upon the written request of a Purchaser or Purchasers given within 20 days after the Company provides such notice (which request shall state the intended method of disposition of such Registrable Shares), the Company shall use its best efforts to cause all Registrable Shares which the Company has been requested by such Purchaser or Purchasers to register to be registered under the Securities Act to the extent necessary to permit their sale or other disposition in accordance with the intended methods of distribution specified in the request of such Purchaser or Purchasers; provided that the Company shall have the right to postpone or withdraw any registration effected pursuant to this Section 2.2 without obligation to any Purchaser.

 

(b)                                 If the registration for which the Company gives notice pursuant to Section 2.2(a) is a registered public offering involving an underwriting, the Company shall so advise the Purchasers as a part of the written notice given pursuant to Section 2.2(a).  In such event, (i) the right of any Purchaser to include its Registrable Shares in such registration pursuant to this Section 2.2 shall be conditioned upon such Purchaser’s participation in such underwriting on the terms set forth herein and (ii) all Purchasers including Registrable Shares in such registration shall enter into an underwriting agreement upon customary terms with the underwriter or underwriters selected for the underwriting by the Company; provided, however, that such underwriting agreement shall not provide for indemnification or contribution obligations on the part of Purchasers materially greater than the obligations of the Purchasers pursuant to Section 2.5.  If any Purchaser who has requested inclusion of its Registrable Shares in such registration as provided above disapproves of the terms of the underwriting, such person may elect, by written notice to the Company, to withdraw its shares from such Registration Statement and underwriting.  If the managing underwriter advises the Company in writing that marketing factors require a limitation on the number of shares to be underwritten, the shares held by holders other than Purchasers and Other Holders shall be excluded from such Registration Statement and underwriting to the extent deemed advisable by the managing underwriter, and, if a further reduction of the number of shares is required, the number of shares that may be included in such Registration Statement and underwriting shall be allocated among all Purchasers and Other Holders requesting registration in proportion, as nearly as practicable, to the respective number of shares of Common Stock (on an as-converted basis) held by them on the date the Company gives the notice specified in Section 2.2(a); provided, further, that, unless such registration is in connection with the Company’s Initial Public Offering, the number of Registrable Shares permitted to be included therein shall in any event be at least 50% of the securities included therein (based on aggregate market values).  If any Purchaser or Other Holder 

 

 

would thus be entitled to include more shares than such holder requested to be registered, the excess shall be allocated among other requesting Purchasers and Other Holders pro rata in the manner described in the preceding sentence.

 

2.3                                 Registration Procedures.

 

(a)                                  If and whenever the Company is required by the provisions of this Agreement to use its best efforts to effect the registration of any Registrable Shares under the Securities Act, the Company shall:

 

(i)                                     file with the Commission a Registration Statement with respect to such Registrable Shares and use its best efforts to cause that Registration Statement to become effective as soon as possible;

 

(ii)                                  as expeditiously as possible, prepare and file with the Commission any amendments and supplements to the Registration Statement and the prospectus included in the Registration Statement as may be necessary to comply with the provisions of the Securities Act (including the anti-fraud provisions thereof) and to keep the Registration Statement effective for 6 months from the effective date or such lesser period until all such Registrable Shares are sold;

 

(iii)                               as expeditiously as possible, furnish to each Selling Stockholder such reasonable numbers of copies of the Prospectus, including any preliminary Prospectus, in conformity with the requirements of the Securities Act, and such other documents as such Selling Stockholder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Shares owned by such Selling Stockholder;

 

(iv)                              as expeditiously as possible, use its best efforts to register or qualify the Registrable Shares covered by the Registration Statement under the securities or Blue Sky laws of such states as the Selling Stockholders shall reasonably request, and do any and all other acts and things that may be necessary or desirable to enable the Selling Stockholders to consummate the public sale or other disposition in such states of the Registrable Shares owned by the Selling Stockholders; provided, however, that the Company shall not be required in connection with this paragraph (iv) to qualify as a foreign corporation or execute a general consent to service of process in any jurisdiction;

 

(v)                                 as expeditiously as possible, cause all such Registrable Shares to be listed on each securities exchange or automated quotation system on which similar securities issued by the Company are then listed;

 

(vi)                              promptly provide a transfer agent and registrar for all such Registrable Shares not later than the effective date of such registration statement;

 

(vii)                           promptly make available for inspection by the Selling Stockholders, any managing underwriter participating in any disposition pursuant to such Registration Statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the Selling Stockholders, all financial and other records, pertinent corporate documents and properties of the Company and cause the Company’s officers, 

 

 

directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such Registration Statement;

 

(viii)                        as expeditiously as possible, notify each Selling Stockholder, promptly after it shall receive notice thereof, of the time when such Registration Statement has become effective or a supplement to any Prospectus forming a part of such Registration Statement has been filed; and

 

(ix)                                as expeditiously as possible following the effectiveness of such Registration Statement, notify each seller of such Registrable Shares of any request by the Commission for the amending or supplementing of such Registration Statement or Prospectus.

 

(b)                                 If the Company has delivered a Prospectus to the Selling Stockholders and after having done so the Prospectus is amended to comply with the requirements of the Securities Act, the Company shall promptly notify the Selling Stockholders and, if requested, the Selling Stockholders shall immediately cease making offers of Registrable Shares and return all Prospectuses to the Company.  The Company shall promptly provide the Selling Stockholders with revised Prospectuses and, following receipt of the revised Prospectuses, the Selling Stockholders shall be free to resume making offers of the Registrable Shares.

 

(c)                                  In the event that, in the judgment of the Company, it is advisable to suspend use of a Prospectus included in a Registration Statement due to pending material developments or other events that have not yet been publicly disclosed and as to which the Company believes public disclosure would be detrimental to the Company, the Company shall notify all Selling Stockholders to such effect, and, upon receipt of such notice, each such Selling Stockholder shall immediately discontinue any sales of Registrable Shares pursuant to such Registration Statement until such Selling Stockholder has received copies of a supplemented or amended Prospectus or until such Selling Stockholder is advised in writing by the Company that the then current Prospectus may be used and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus.  Notwithstanding anything to the contrary herein, the Company shall not exercise its rights under this Section 2.3(c) to suspend sales of Registrable Shares for a period in excess of 30 days consecutively or 60 days in any 12-month period.

 

2.4                                 Allocation of Expenses.  The Company will pay all Registration Expenses for all registrations under this Agreement; provided, however, that if a registration under Section 2.1 is withdrawn at the request of the Initiating Holders (other than as a result of information concerning the business or financial condition of the Company which is made known to the Selling Stockholders after the date on which such registration was requested) and if the Initiating Holders elect not to have such registration counted as a registration requested under Section 2.1, the Selling Stockholders shall pay the Registration Expenses of such registration pro rata in accordance with the number of their Registrable Shares included in such registration.

 

 

2.5                                 Indemnification and Contribution.

 

(a)                                  In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this Agreement, the Company will indemnify and hold harmless each Selling Stockholder, each underwriter of such Registrable Shares, and each other person, if any, who controls such Selling Stockholder or underwriter within the meaning of the Securities Act or the Exchange Act against any losses, claims, damages or liabilities, joint or several, to which such Selling Stockholder, underwriter or controlling person may become subject under the Securities Act, the Exchange Act, state securities or blue sky laws or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement under which such Registrable Shares were registered under the Securities Act, any preliminary prospectus or final prospectus contained in the Registration Statement, or any amendment or supplement to such Registration Statement, (ii) the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law in connection with the Registration Statement or the offering contemplated thereby; and the Company will reimburse such Selling Stockholder, underwriter and each such controlling person for any legal or any other expenses reasonably incurred by such Selling Stockholder, underwriter or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any untrue statement or omission made in such Registration Statement, preliminary prospectus or prospectus, or any such amendment or supplement, in reliance upon and in conformity with information furnished to the Company, in writing, by or on behalf of such Selling Stockholder, underwriter or controlling person specifically for use in the preparation thereof.

 

(b)                                 In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this Agreement, each Selling Stockholder, severally and not jointly, will indemnify and hold harmless the Company, each of its directors, officers, employees and agents and each underwriter (if any) and each person, if any, who controls the Company or any such underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to which the Company, such directors, officers, employees and agents, underwriter or controlling person may become subject under the Securities Act, Exchange Act, state securities or blue sky laws or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement under which such Registrable Shares were registered under the Securities Act, any preliminary prospectus or final prospectus contained in the Registration Statement, or any amendment or supplement to the Registration Statement, or (ii) any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, if and to the extent (and only to the extent) that the statement or omission was made in reliance upon and in conformity with information relating to such Selling Stockholder furnished in writing to the Company by such Selling Stockholder specifically for use in connection with the preparation of such Registration Statement, prospectus, amendment or 

 

 

supplement; provided, however, that the obligations of a Selling Stockholder hereunder shall be limited to an amount equal to the net proceeds to such Selling Stockholder of Registrable Shares sold in connection with such registration.

 

(c)                                  Each Indemnified Party shall give notice to the Indemnifying Party promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom; provided, however, that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not be unreasonably withheld, conditioned or delayed); and, provided, further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 2.5 except to the extent that the Indemnifying Party is adversely affected by such failure.  The Indemnified Party may participate in such defense at such party’s expense; provided, however, that the Indemnifying Party shall pay such expense if the Indemnified Party reasonably concludes that representation of such Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential differing interests between the Indemnified Party and any other party represented by such counsel in such proceeding; provided  further that in no event shall the Indemnifying Party be required to pay the expenses of more than one law firm per jurisdiction as counsel for the Indemnified Party.  The Indemnifying Party also shall be responsible for the expenses of such defense if the Indemnifying Party does not elect to assume such defense.  No Indemnifying Party, in the defense of any such claim or litigation shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such claim or litigation, and no Indemnified Party shall consent to entry of any judgment or settle such claim or litigation without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(d)                                 In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 2.5 is due in accordance with its terms but for any reason is held to be unavailable to an Indemnified Party in respect to any losses, claims, damages and liabilities referred to herein, then the Indemnifying Party shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities to which such party may be subject in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Selling Stockholders on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative fault of the Company and the Selling Stockholders shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of material fact related to information supplied by the Company or the Selling Stockholders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The Company and the Selling Stockholders agree that it would not be just and equitable if contribution pursuant to this Section 2.5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above.  Notwithstanding the provisions of this Section 2.5(d), (i) in no case shall any one Selling Stockholder be liable or 

 

 

responsible for any amount in excess of the net proceeds received by such Selling Stockholder from the offering of Registrable Shares and (ii) the Company shall be liable and responsible for any amount in excess of such proceeds; provided, however, that 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.  Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 2.5(d), notify such party or parties from whom contribution may be sought, but the omission so to notify such party or parties from whom contribution may be sought shall not relieve such party from any other obligation it or they may have thereunder or otherwise under this Section 2.5(d).  No party shall be liable for contribution with respect to any action, suit, proceeding or claim settled without its prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(e)                                  The rights and obligations of the Company and the Selling Stockholders under this Section 2.5 shall survive the termination of this Agreement.

 

2.6                                 Other Matters with Respect to Underwritten Offerings.  In the event that Registrable Shares are sold pursuant to a Registration Statement in an underwritten offering pursuant to Section 2.1, the Company agrees to (a) enter into an underwriting agreement containing customary representations and warranties with respect to the business and operations of the Company and customary covenants and agreements to be performed by the Company, including without limitation customary provisions with respect to indemnification by the Company of the underwriters of such offering; (b) use its best efforts to cause its legal counsel to render customary opinions to the underwriters and the Selling Stockholders with respect to the Registration Statement; and (c) use its best efforts to cause its independent public accounting firm to issue customary “cold comfort letters” to the underwriters and the Selling Stockholders with respect to the Registration Statement.

 

2.7                                 Information by Holder.  Each holder of Registrable Shares included in any registration shall furnish to the Company such information regarding such holder and the distribution proposed by such holder as the Company may reasonably request in writing and as shall be required in connection with any registration, qualification or compliance referred to in this Agreement.

 

2.8                                 “Lock-Up” Agreement; Confidentiality of Notices.

 

(a)                                  Each Purchaser, if requested by the Company and the managing underwriter of the Initial Public Offering, shall not sell or otherwise transfer or dispose of any Registrable Shares or other securities of the Company (excluding securities acquired in the Initial Public Offering or in the public market after such offering) held by such Purchaser for a period of 180 days following the effective date of the Registration Statement for the Initial Public Offering (subject to extension for a period of up to 17 days if requested by the Company and its underwriters to accommodate customary regulatory restrictions); provided, however, that all stockholders of the Company then holding at least 1% of the outstanding Common Stock (on an as-converted basis) and all officers and directors of the Company enter into similar agreements.

 

 

(b)                                 The Company may impose stop-transfer instructions with respect to the Registrable Shares or other securities subject to the foregoing restriction until the end of such 180-day period.

 

(c)                                  As a condition to the obligation of the Purchasers under this Section 2.8, the Company agrees to use its reasonable best efforts to ensure that the “lock-up” obligation of the Purchasers under this Section 2.8, and any agreement entered into by the Purchasers as a result of their obligations under this Section 2.8, shall (i) allow for periodic early releases of portions of the securities subject to such “lock-up” obligations, which may be conditioned upon the trading price of the Company’s Common Stock and (ii) provide that all Purchasers will participate on a pro-rata basis in any early release of any stockholder.

 

(d)                                 Any Purchaser receiving any written notice from the Company regarding the Company’s plans to file a Registration Statement shall treat such notice confidentially and shall not disclose such information to any person other than as necessary to exercise its rights under this Agreement.

 

2.9                                 Limitations on Subsequent Registration Rights.  The Company shall not, without the prior written consent of Purchasers holding at least 67% of the Registrable Shares then held by all Purchasers, including the written consent of Edison, North Atlantic, Sevin Rosen and IGC, enter into any agreement (other than this Agreement) with any holder or prospective holder of any securities of the Company which grant such holder or prospective holder rights to include securities of the Company in any Registration Statement, unless (a) such rights to include securities in a registration initiated by the Company or by Purchasers are not more favorable than the rights granted to Other Holders under Section 2.2, and (b) no rights are granted to initiate a registration, other than registration pursuant to a registration statement on Form S-3 (or its successor) in which Purchasers are entitled to include Registrable Shares on a pro rata basis with such holders based on the number of shares of Common Stock (on an as-converted basis) owned by Purchasers and such holders, provided that the Company may grant to a purchaser of at least 5,000,000 shares of convertible preferred stock (on an as-converted to Common Stock basis) (subject to appropriate adjustment for stock splits, stock dividends, recapitalizations and similar events occurring after the date of the filing of the Restated Certificate) demand registration rights on terms equivalent to those granted to Edison, North Atlantic, Sevin Rosen and IGC with the written consent of a majority of the Registrable Shares then held by all Purchasers.

 

2.10                           Rule 144 Requirements.  After the earliest of (i) the closing of the sale of securities of the Company pursuant to a Registration Statement, (ii) the registration by the Company of a class of securities under Section 12 of the Exchange Act, or (iii) the issuance by the Company of an offering circular pursuant to Regulation A under the Securities Act, the Company agrees to:

 

(a)                                  make and keep current public information about the Company available, as those terms are understood and defined in Rule 144;

 

(b)                                 use its best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and

 

 

(c)                                  furnish to any holder of Registrable Shares upon request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), (ii) a copy of the most recent annual or quarterly report of the Company, and (iii) such other reports and documents of the Company as such holder may reasonably request to avail itself by virtue of any similar rule or regulation of the Commission allowing that holder to sell any such securities without registration.

 

2.11                           Termination, All of the Company’s obligations to register Registrable Shares under Sections 2.1 and 2.2 shall terminate upon the earlier of (i) two years after the closing of the Initial Public Offering or (ii) the date on which no Purchaser holds any Registrable Shares.

 

3.                                       Pre-Emptive Right.

 

3.1                                 Rights of Purchasers to Acquire Offered Securities.

 

(a)                                  The Company shall not issue, sell or exchange, agree to issue, sell or exchange, or reserve or set aside for issuance, sale or exchange, any Offered Securities, unless in each such case the Company shall have first complied with this Section 3.1.  The Company shall deliver to each Qualified Purchaser an Offer, which shall (i) identify and describe the Offered Securities, (ii) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (iii) identify the persons or entities (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged, and (iv) offer to issue and sell to or exchange with such Purchaser that is a Qualified Purchaser (A) such Qualified Purchaser’s Basic Amount and (B) such Qualified Purchaser’s Under subscription Amount.

 

(b)                                 To accept an Offer, in whole or in part, a Qualified Purchaser must deliver to the Company, on or prior to the date 30 days after the date of delivery of the Offer, a Notice of Acceptance providing a representation letter certifying that such Qualified Purchaser is an accredited investor within the meaning of Rule 501 under the Securities Act and indicating the portion of the Qualified Purchaser’s Basic Amount that such Qualified Purchaser elects to purchase and, if such Qualified Purchaser shall elect to purchase all of its Basic Amount, the Undersubscription Amount (if any) that such Qualified Purchaser elects to purchase.  If the Basic Amounts subscribed for by all Qualified Purchasers are less than the total of all of the Basic Amounts available for purchase, then each Qualified Purchaser who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, that if the Undersubscription Amounts subscribed for exceed the Available Undersubscription Amount, each Qualified Purchaser who has subscribed for any Undersubscription Amount shall be entitled to purchase only that portion of the Available Undersubscription Amount as the Undersubscription Amount subscribed for by such Qualified Purchaser bears to the total Undersubscription Amounts subscribed for by all Purchasers, subject to rounding by the Board of Directors to the extent it deems reasonably necessary.

 

 

(c)                                  The Company shall have 90 days from the expiration of the period set forth in Section 3.1 (b) to issue, sell or exchange all or any part of the Refused Securities, but only to the offerees or purchasers described in the Offer (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and interest rates) which are not more favorable, in the aggregate, to the acquiring person or persons or less favorable to the Company than those set forth in the Offer.

 

(d)                                 In the event the Company shall propose to sell less than all the Refused Securities, then each Qualified Purchaser may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that the Qualified Purchaser elected to purchase pursuant to Section 3.1(b) multiplied by a fraction, (i) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued or sold to Qualified Purchasers pursuant to Section 3.l(b) prior to such reduction) and (ii) the denominator of which shall be the original amount of the Offered Securities.  In the event that any Qualified Purchaser so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Qualified Purchasers in accordance with Section 3.1(a).

 

(e)                                  Upon (i) the closing of the issuance, sale or exchange of all or less than all of the Refused Securities or (ii) such other date agreed to by the Company and Qualified Purchasers who have subscribed for a majority of the Offered Securities subscribed for by the Qualified Purchasers, such Qualified Purchaser or Purchasers shall acquire from the Company and the Company shall issue to such Qualified Purchaser or Purchasers, the number or amount of Offered Securities specified in the Notices of Acceptance, as reduced pursuant to Section 3.1(d) if any of the Qualified Purchasers has so elected, upon the terms and conditions specified in the Offer.

 

(f)                                    The purchase by the Qualified Purchasers of any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and the Qualified Purchasers of a purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to the Qualified Purchasers and their respective counsel.

 

(g)                                 Any Offered Securities not acquired by the Qualified Purchasers or other persons in accordance with Section 3.1(c) may not be issued, sold or exchanged until they are again offered to the Qualified Purchasers under the procedures specified in this Agreement.

 

(h)                                 The rights of the Qualified Purchasers under this Section 3.1 shall not apply to:

 

(i)                                     the issuance of any Shares pursuant to the Purchase Agreement;

 

(ii)                                  the issuance of any shares of Common Stock as a stock dividend to holders of Common Stock or upon any subdivision or combination of shares of 

 

 

Common Stock or any reclassification, recapitalization, reorganization or similar events affecting the Common Stock;

 

(iii)                               the issuance of any shares of Common Stock upon conversion of the Shares or exercise of Warrants;

 

(iv)                              the issuance of up to 21,428,102 shares of Common Stock or options with respect thereto (subject in either case to appropriate adjustment for stock splits, stock dividends, recapitalizations and similar events occurring after the date of the filing of the Restated Certificate), issued or issuable to employees, directors or officers of, or consultants to, the Company or any of its subsidiaries pursuant to any plan, agreement or arrangement approved by the Board of Directors of the Company and by a majority of the members of the Board of Directors who are not employees of the Company or a Company Subsidiary whether issued before or after the filing of the Restated Certificate (it being understood that any shares subject to options that expire or terminate unexercised or any restricted stock repurchased by the Company shall not be counted towards the maximum number set forth in this clause (iv) unless and until regranted or reissued pursuant to any such plan, agreement or arrangement);

 

(v)                                 the issuance of capital stock of the Company in connection with (i) an acquisition of substantially all of the stock or assets of any other entity (whether by merger or consolidation) or (ii) a strategic partnership, joint venture or similar transaction, in each case approved by the Board of Directors of the Company, including the directors elected by the holders of Series B Preferred Stock, the holders of Series C Preferred Stock, the Series D Preferred Stock and the Series D1 Preferred Stock, voting together as a single class, the holders of Series 1 Preferred Stock and Series 2 Preferred Stock, voting together as a single class, the holders of Series E Preferred Stock and the holders of the Series F Preferred Stock; or

 

(vi)                              the issuance of shares of Common Stock by the Company in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act.

 

(i)                                     Notwithstanding anything to the contrary in this Agreement, no Qualified Purchaser shall have any rights under this Section 3.1 unless such Qualified Purchaser owns at least one and one-half percent (1.5%) of the Company’s outstanding Common Stock on a fully diluted basis.  For purposes of this Section 3.1(i), (A) a Qualified Purchaser shall be deemed to own all common stock that such Qualified Purchaser has the right to acquire through the exercise of any option, warrant or right (excluding any right of first refusal) or the conversion of a convertible security (whether or not currently exercisable) and (B) all Common Stock not outstanding which any securityholder of the Company has the right to acquire from the Company pursuant to outstanding warrants, options, rights (excluding any right of first refusal) or conversion privileges (whether or not currently exercisable) shall be deemed to be outstanding for the purpose of computing the percentage of the Common Stock owned by each Qualified Purchaser.

 

3.2                                 Termination.  This Section 3 shall terminate upon the earlier of the closing of a Company Sale or the closing of an Initial Public Offering.

 

 

4.                                       Covenants.

 

4.1                                 Negative Covenants; Consent of all Shares.  So long as any Shares are outstanding, the Company shall not, without prior written consent of the holders of (i) at least 67% of the Shares, acting together as a single class, (ii) at least 50% of the shares of Series E Preferred Stock then outstanding, (iii) at least 50% of the shares of Series F Preferred Stock then outstanding and (iv) a majority of the shares of Series 1 Preferred Stock and Series 2 Preferred Stock then outstanding, acting together as a single class:

 

(a)                                  amend or repeal (in each case, by amendment, merger, consolidation or otherwise) any provision of, or add any provision to, the Restated Certificate, or Bylaws if such action would change or adversely affect the rights, preference or privileges of the Shares, provided that the authorization or issuance of an additional series of convertible preferred stock of the Company, including, without limitation, with rights, preferences or privileges that are pari passu or senior to the Shares, shall not be deemed an action that would change or adversely affect the rights, preferences or privileges of the Shares;

 

(b)                                 declare or pay any dividend or make any distribution on its capital stock (other than dividends on Common Stock payable solely in Common Stock and other than dividends payable on Preferred Stock pursuant to the Restated Certificate) or permit any Company Subsidiary to declare or pay any dividend or make any distribution (other than dividends or distributions payable solely to the Company); and

 

(c)                                  except for the Company’s repurchase of Common Stock, Series A Preferred Stock, Series 1 Preferred Stock and/or Series 2 Preferred Stock at a purchase price of no more than $1.06 per share and up to a maximum of $5,000,000 in the aggregate, which repurchase shall take place prior to July 25, 2009 (the “Repurchase”), apply any of its assets to the redemption, retirement, purchase or acquisition, directly or indirectly (including through a Company Subsidiary), or otherwise, of any shares of its capital stock (other than (i) redemptions of Preferred Stock in accordance with the terms of the Restated Certificate and (ii) repurchases of Common Stock at cost upon termination of employment or service).

 

4.2                                 Negative Covenants; Consent of Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series D1 Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series 1 Preferred Stock and Series 2 Preferred Stock.  So long as any shares of Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series D1 Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series 1 Preferred Stock and Series 2 Preferred Stock are outstanding, the Company shall not without the prior written consent of the holders of not less than a majority of the then outstanding shares of Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series D1 Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series 1 Preferred Stock and Series 2 Preferred Stock, voting together as a class:

 

(a)                                  pledge any of the assets (including intellectual property) of the Company except for a security interest on the Company’s assets granted to (i) Comerica Bank- California, (ii) The Bank of Southern Connecticut, (iii) certain Investors party to that certain Securities Purchase Agreement dated as of May 23, 2006 and (iv) ORIX Venture Finance LLC 

 

 

pursuant to that certain Limited Consent and First Amendment to Loan and Security Agreement dated as of July 25, 2008; or

 

(b)                                 authorize, designate or issue any capital stock of the Company (including, without limitation, any class of stock having any right, preference or priority superior to the Series A Preferred Stock, the Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series D1 Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series 1 Preferred Stock or Series 2 Preferred Stock), provided, that this right shall not apply to any of the following:

 

(i)                                     the issuance of any shares of Common Stock as a stock dividend to holders of Common Stock or upon the occurrence of any subdivision, combination reclassification, recapitalization reorganization or similar events;

 

(ii)                                  the issuance of any shares of Common Stock upon conversion of any outstanding shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series D1 Preferred Stock, Series E Preferred, Series F Preferred Stock, Stock, Series 1 Preferred Stock or Series 2 Preferred Stock;

 

(iii)                               the issuance of any shares of Common Stock upon exercise of any Warrant;

 

(iv)                              the issuance of up to 21,428,102 shares of Common Stock or options with respect thereto (subject in either case to appropriate adjustment for stock splits, stock dividends, recapitalizations and similar events occurring after the date of the filing of the Restated Certificate), issued or issuable to employees, directors or officers of, or consultants to, the Company or any of its subsidiaries pursuant to any plan, agreement or arrangement approved by the Board of Directors of the Company and by a majority of the members of the Board of Directors who are not employees of the Company or a Company Subsidiary whether issued before or after the filing of the Restated Certificate (it being understood that any shares subject to options that expire or terminate unexercised or any restricted stock repurchased by the Company shall not be counted towards the maximum number set forth in this clause (iv) unless and until regranted or reissued pursuant to any such plan, agreement or arrangement);

 

(v)                                 the issuance of capital stock of the Company in connection with (A) an acquisition of substantially all of the stock or assets of any other entity (whether by merger or consolidation) or (B) a strategic partnership, joint venture or similar transaction, in each case approved by the Board of Directors of the Company, including by the directors designated by the Series B Holders, Series C Holders, Series D Holders and Series D1 Holders, voting together as a single class, by the directors designated by the Series 1 Holders and Series 2 Holders, voting together as a single class, by the director designated by the Series E Holders and by the director designated by the Series F Holders;

 

(vi)                              the issuance of shares of Common Stock by the Company in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act; and

 

 

(vii)                           the acquisition, directly or indirectly (including through a Company Subsidiary), of all or substantially all of the properties, assets or stock of any other company or entity.

 

4.3                                 Negative Covenants; Consent of Holders of Shares.

 

(a)                                  So long as any shares of Series D Preferred Stock and Series D1 Preferred Stock are outstanding:

 

(i)                                     the Company shall not, without the prior written consent of the holders of not less than 67% of the then outstanding shares of Series D Preferred Stock and Series D1 Preferred Stock, voting together as a single class, amend the terms of the Series D Preferred Stock and the Series D1 Preferred Stock if (1) such amendment would have an adverse effect on the rights and preferences of the Series D Preferred Stock and the Series D1 Preferred Stock in a substantially similar manner, and (2) the rights and preferences of the Series B Preferred Stock and the Series C Preferred Stock would not be adversely affected in a substantially similar manner by amending their respective terms at the same time as the amendment to the Series D Preferred Stock and the Series D1 Preferred Stock.

 

(ii)                                  the Company shall not, without the prior written consent of the holders of not less than 67% of the then outstanding shares of Series D Preferred Stock or Series D1 Preferred Stock, as applicable, each voting separately as an individual class, amend the terms of the Series D Preferred Stock or the Series D1 Preferred Stock if (1) such amendment would have an adverse effect on the rights and preferences of the Series D Preferred Stock or the Series D1 Preferred Stock, but not both, and (2) the rights and preferences of the Series B Preferred Stock and the Series C Preferred Stock would not be adversely affected in a substantially similar manner by amending their respective terms at the same time as the amendment to the Series D Preferred Stock or the Series D1 Preferred Stock, as applicable.

 

(b)                                 So long as any shares of Series E Preferred Stock are outstanding, the Company shall not, without the prior written consent of the holders of not less than 50% of the then outstanding shares of Series E Preferred Stock, voting as a separate class, amend (by amendment, merger, consolidation or otherwise) the terms of the Series E Preferred Stock if such amendment would have an adverse effect on the rights and preferences of the Series E Preferred Stock.

 

(c)                                  So long as any shares of Series F Preferred Stock are outstanding, the Company shall not, without the prior written consent of the holders of not less than 50% of the then outstanding shares of Series F Preferred Stock) voting as a separate class, (i) amend the terms of the Series F Preferred Stock if such amendment would have an adverse effect on the rights and preferences of the Series F Preferred Stock or (ii):

 

(1)                                  purchase in the Repurchase from any employee of the Company more than 15% of the aggregate number of Shares and shares of Common Stock held by such employee (including common stock issuable upon the exercise of options) calculated on an as-converted basis;

 

 

(2)                                  purchase in the Repurchase any Shares or shares of Common Stock at a price per share greater than $1.06;

 

(3)                                  use the proceeds of the sale of the Series F Preferred Stock pursuant to the Purchase Agreement other than in accordance with Section 2.2 of the Purchase Agreement, including, to the extent that the aggregate purchase price of Shares and shares of Common Stock purchased in the Repurchase totals less than $5,000,000, the balance of such $5,000,000 allocated in Section 2.2 of the Purchase Agreement to the Repurchase;

 

(4)                                  repurchase any Shares or shares of Common Stock from William Marsh other than as part of the Repurchase;

 

(5)                                  purchase in the Repurchase any shares of capital stock unless such shares are canceled upon purchase; or

 

(6)                                  reissue any Shares or shares of Common Stock that were purchased in the Repurchase.

 

(d)                                 So long as any shares of Series 1 Preferred Stock are outstanding, the Company shall not, without the prior written consent of the holders of not less than 50% of the then outstanding shares of Series 1 Preferred Stock, voting as a separate class, amend the terms of the Series 1 Preferred Stock if such amendment would have an adverse effect on the rights and preferences of the Series 1 Preferred Stock.

 

(e)                                  So long as any shares of Series 2 Preferred Stock are outstanding, the Company shall not, without the prior written consent of the holders of not less than 50% of the then outstanding shares of Series 2 Preferred Stock, voting as a separate class, amend the terms of the Series 2 Preferred Stock if such amendment would have an adverse effect on the rights and preferences of the Series 2 Preferred Stock.

 

4.4                                 Affirmative Covenants.  So long as any Shares are outstanding, the Company covenants and agrees that it will perform and observe the following covenants and provisions and will cause each Company Subsidiary to perform and observe such of the following covenants and provisions as are applicable to such Company Subsidiary:

 

(a)                                  Payment of Taxes and Trade Debt.  Pay and discharge all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or business, or upon any properties belonging to it, prior to the date on which penalties attach thereto, and all lawful claims, which, if unpaid, might become a lien or charge upon any properties of the Company or a Company Subsidiary, other than those which are being contested in good faith if the Company shall have set aside on its books and shall have provided, in accordance with generally accepted accounting principles, adequate reserves with respect thereto; and pay in conformity with customary trade terms, all lease obligations, all trade debt, and all other indebtedness incident to its operations, except such as are being contested in good faith if the Company shall have set aside on its books and shall have provided, in accordance with generally accepted accounting principles, appropriate reserves with respect thereto.

 

 

(b)                                 Maintenance of Insurance.  Maintain with responsible and reputable insurance companies or associations, insurance in such amounts and covering such risks as the Company reasonably deems advisable and maintain directors and officers insurance in such amounts and covering such individuals as the holders of Preferred Stock reasonably deem advisable.  The Company has as of the date hereof or shall within sixty (60) days of the date hereof use commercially reasonable efforts to obtain from financially sound and reputable insurers directors and officers errors and omissions insurance in an amount of at least $5,000,000.

 

(c)                                  Preservation of Corporate Existence.  Preserve and maintain its corporate existence, rights, franchises and privileges in the jurisdiction of its incorporation, and qualify and remain qualified as a foreign corporation in each jurisdiction in which such qualification is required, unless the failure to so qualify does not and will not have a material and adverse effect on the business, operations or financial condition of the Company; and preserve and maintain all material licenses and other rights to use patents, processes, licenses, trademarks, trade names, inventions, intellectual property rights or copyrights owned or possessed by it as are reasonably necessary or advisable for it to conduct its business.

 

(d)                                 Compliance with Laws.  Comply with all applicable laws, rules, regulations and orders of any governmental authority, noncompliance with which could materially adversely affect its business or condition, financial or otherwise, except non- compliance being contested in good faith through appropriate proceedings so long as the Company shall have set up and funded sufficient reserves, if any, required under generally accepted accounting principles with respect to such items.

 

(e)                                  Keeping of Records and Books of Account.  Keep adequate records and books of account, in which complete entries will be made in accordance with generally accepted accounting principles consistently applied, reflecting all financial transactions of the Company, and in which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection within its business shall be made.

 

(f)                                    Maintenance of Properties, etc.  Maintain and preserve all of its properties that the Company reasonably deems necessary or useful in the proper conduct of its business in good repair, working order and condition, ordinary wear and tear excepted, and from time to time make all necessary and proper repairs, renewals, replacements, additions and improvements thereto; and comply with the provisions of all material leases to which it is a party or under which it occupies property so as to prevent any material loss or forfeiture thereof or thereunder.

 

4.5                                 Inspection and Observation.  The Company shall permit each Purchaser, during the Company’s normal business hours, to visit and inspect the Company’s properties, to examine and make copies of its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be reasonably requested by the Purchaser (including such rights to inspection as may be required for any Purchaser who is an SBIC licensed by the Small Business Administration); provided, however, that the Company shall not be obligated pursuant to this Section 4.5 to provide access to any 

 

 

information which it reasonably considers to be a trade secret or similar confidential information (unless covered by a reasonable and enforceable confidentiality agreement, in form reasonably acceptable to the Company) or which, if so provided, would adversely affect the attorney-client privilege between the Company and its counsel.

 

4.6                                 Financial Statements and Other Information.

 

(a)                                  The Company shall deliver, (i) so long as Edison remains a stockholder of the Company, to Edison, (ii) so long as North Atlantic remains a stockholder of the Company, to North Atlantic, (iii) so long as any of the Series E Preferred Stock remains outstanding, to each Series E Holder, (iv) so long as IGC remains a stockholder of the Company, to IGC, (v) so long Sevin Rosen remains a stockholder of the Company, to Sevin Rosen, and (vi) to each other Purchaser (upon such other Purchaser’s request):

 

(i)                                     within five months after the end of each fiscal year of the Company, an audited balance sheet of the Company as at the end of such year and audited statements of income and of cash flows of the Company for such year, certified by certified public accountants of established national reputation selected by the Board of Directors (or a committee thereof), and prepared in accordance with generally accepted accounting principles consistently applied; provided  that, notwithstanding the foregoing, the audited balance sheet of and audited statements of income and of cash flows of the Company for the year ended December 31, 2007 will be delivered no later than September 15, 2008;

 

(ii)                                  within 45 days after the end of each fiscal quarter of the Company (other than the fourth quarter), an unaudited balance sheet of the Company as at the end of such quarter, and unaudited statements of income and of cash flows of the Company for such fiscal quarter and for the current fiscal year to the end of such fiscal quarter along with a narrative on performance and outlook; and

 

(iii)                               within 30 days after the end of each month, an unaudited balance sheet of the Company and unaudited statements of income and cash flows of the Company for the month ended, including a comparison to the Company’s projections for such month.

 

(b)                                 The Company shall deliver to (i) each Purchaser owning not less than 1,000,000 Shares (subject to appropriate adjustment for stock splits, stock dividends, recapitalizations and similar events), (ii) to each Series E Holder, so long as any of the Series E Preferred Stock remains outstanding and (iii) to each Series F Holder, so long as any of the Series F Preferred Stock remains outstanding:

 

(i)                                     as soon as available, but in any event prior to the commencement of each new fiscal year, a business plan and projected financial statements for such fiscal year, as well as a cash flow statement and a profit and loss statement;

 

(ii)                                  such other notices, information and data with respect to the Company as the Company delivers to the holders of its capital stock at the same time it delivers such items to such holders; and

 

 

(iii)                               with reasonable promptness, such other information and data as such Purchaser may from time to time reasonably request.

 

(c)                                  The foregoing financial statements shall be prepared on a consolidated basis if the Company then has any subsidiaries.  The financial statements delivered pursuant to clause (ii) and (iii) of paragraph (a) and clause (i) of paragraph (b) shall be accompanied by a certificate of the chief financial officer of the Company stating that such statements have been prepared in accordance with generally accepted accounting principles consistently applied (except as noted) and fairly present the financial condition and results of operations of the Company at the date thereof and for the periods covered thereby.

 

4.7                                 SBIC Information Rights and Related Covenants.

 

(a)                                  The Company shall provide to any Purchaser that is licensed by the Small Business Administration (the “SBA”) as a Small Business Investment Company (an “SBIC Investor”) and the SBA with access to its books and records for the purpose of confirming the use of the proceeds of such financing and for all other purposes required by the SBA.

 

(b)                                 The Company shall provide to each SBIC Investor such financial and other information as each SBIC Investor may from time to time reasonably request to enable it to comply with the provisions of 13 C.F.R. Section 107.620(b)(l), and such information shall be certified by the Company’s President, Chief Executive Officer, Treasurer or Chief Financial Officer as required by 13 C.F.R. Section 107.620(b)(2).

 

(c)                                  The Company shall provide to the SBIC Investor and the SBA a certificate of its Chief Financial Officer (i) verifying the use of such proceeds and (ii) certifying compliance by the Company with the provisions of this Agreement (provided that such certificate may be truthfully given).

 

(d)                                 Within 45 days after the end of each fiscal year, the Company shall provide to each SBIC Investor a written assessment, in form and substance reasonably satisfactory to such SBIC Investor, of the economic impact of Investor’s financing hereunder, specifying the full-time equivalent jobs created or retained, the impact of the financing on the consolidated revenues and profits of the Company and on taxes paid by the Company and its employees (See 13 C.F.R. § 107.630(e)).

 

(e)                                  Upon the request of an SBIC Investor or any of its Affiliates, the Company will (i) provide to such Person such financial statements and other information as such Person may from time to time reasonably request for the purpose of assessing the Company’s financial condition and (ii) furnish to such Person all information reasonably requested by it in order for it to prepare and file SBA Form 468 and any other information reasonably requested or required by any governmental agency asserting jurisdiction over such Person.

 

(f)                                    The Company will at all times comply with the non-discrimination requirements of 13 C.F.R., Parts 112,113 and 117.

 

(g)                                 The Company will notify SBIC Investor from time to time when the number of its shareholders decreases below 50.

 

 

4.8                                 Material Changes and Litigation.  The Company shall promptly notify the Purchasers of any material adverse change in the business, operations, assets or condition, financial or otherwise, of the Company and of any litigation or governmental proceeding or investigation brought or, to the best of the Company’s knowledge, threatened against the Company, or against any officer, director, key employee or principal stockholder of the Company which, if adversely determined, would have a material adverse effect on the business, assets or condition (financial or otherwise) of the Company.

 

4.9                                 Key Man Insurance.  The Company shall maintain for a period of five years after the date hereof term life insurance upon the life of Albert Subbloie in the amount of $2,000,000, with the proceeds payable to the Company.

 

4.10                           Agreements with Employees; Options.

 

(a)                                  The Company shall require all persons now or hereafter employed by the Company to enter into an agreement substantially in a form as may be approved by the Board of Directors of the Company from time to time, including the directors designated by the holders of Series B Preferred Stock, the holders of Series C Preferred Stock, the holders of Series D Preferred Stock and Series D1 Preferred Stock, voting together as a single class, the holders of Series 1 Preferred Stock and Series 2 Preferred Stock, voting together as a single class, the holders of the Series E Preferred Stock and the holders of the Series F Preferred Stock, which will include obligations for non-disclosure, non-solicitation, non competition and assignment of inventions.

 

(b)                                 The Company agrees that it will not, without the prior written consent of the holders of a majority of the Shares then outstanding, terminate, amend or waive any rights under any inventions, confidentiality, non-competition or restricted stock agreement between the Company and any Founder.

 

(c)                                  Unless otherwise approved by the Board of Directors of the Company and by a majority of the members of the Board of Directors who are not employees of the Company or a Company Subsidiary, including the directors designated by the holders of Series B Preferred Stock, the holders of Series C Preferred Stock, the holders of Series D Preferred Stock and Series D1 Preferred Stock, voting together as a single class, the holders of Series 1 Preferred Stock and Series 2 Preferred Stock, voting together as a single class, the holders of Series E Preferred Stock and the holders of Series F Preferred Stock, all options or restricted stock granted or issued by the Company after the date hereof shall become exercisable at the rate of 25% on the first anniversary of grant or issue and 2.0833% per month thereafter over the subsequent three years so long as the holder continues to be an employee or consultant of the Company.

 

4.11                           Board of Directors.

 

(a)                                  The Company shall promptly reimburse in full each director of the Company who is not an employee of the Company for all of his or her reasonable out-of-pocket expenses incurred in attending each meeting of the Board of Directors of the Company or any committee thereof.

 

 

(b)                                 The Board of Directors shall meet at least six times per year, unless otherwise agreed by a majority of the members of the Board of Directors.

 

(c)                                  The Restated Certificate shall at all times provide for the indemnification of the members of the Board of Directors to the fullest extent provided by the law of the jurisdiction in which the Company is organized.  In the event that the Company or any of its successors or assigns (i) consolidates with or mergers into any other entity and shall not be the continuing or surviving corporation in such consolidation or merger or (ii) transfers or conveys all or substantially all of its properties and assets to any entity, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of the Company assume the obligations of the Company with respect to indemnification of members of the Board of Directors as contained in the Restated Certificate.

 

(d)                                 The Company will maintain a Compensation Committee and an Audit Committee of the Board of Directors.  The Compensation Committee will consist of at least two members and the size and membership of the Audit Committee shall be determined by the Board of Directors; provided  that, one member of each of the Compensation Committee and the Audit Committee shall be a director designated by the Series E Holders and one member of the Compensation Committee shall be a director designated by the Series F Holders.  The Compensation Committee will meet at least twice a year and make recommendations to the full Board of Directors for such matters as management compensation, Company benefit plans, and matters relating to the Company’s option plans.  The Board of Directors will have the power to veto the recommendations of the Compensation Committee.  The Audit Committee shall be comprised solely of non-employees of the Company.

 

(e)                                  Pursuant to the terms of the Company’s option plans, Independent Directors of the Company shall be awarded stock options commensurate with the stock option grants received by other outside members of boards of directors of similarly sized companies, which shall be determined by a recommendation of the Compensation Committee and approved by a vote of a majority of members of the Board of Directors.

 

4.12                           [Reserved]

 

4.13                           Related Party Transactions.

 

(a)                                  The Company shall not enter into any agreement with any stockholder, officer or director of the Company, or any “affiliate” of such persons (as such term is defined in the rules and regulations promulgated under the Securities Act), including without limitation any agreement or other arrangement providing for the furnishing of services by, rental of real or personal property from, or otherwise requiring payments to, any such person or entity, without the consent of at least a majority of the members of the Company’s Board of Directors having no interest in such agreement or arrangement.

 

(b)                                 The approval of the Board of Directors of the Company and a majority of the members of the Board of Directors who are not employees of the Company or a Company Subsidiary shall be required to (i) establish or increase the compensation of executive officers of the Company or (ii) grant stock options to any officer of the Company.

 

 

4.14                           Reservation of Common Stock.  The Company shall reserve and maintain a sufficient number of shares of Common Stock for issuance upon conversion of all of the outstanding Shares.

 

4.15                           International Investment and Trade in Services Survey Act.  The Company shall use its best efforts to file on a timely basis all reports required to be filed by it under 22 U.S.C. Section 3104, or any similar statute, relating to a foreign person’s direct or indirect investment in the Company.

 

4.16                           Termination of Covenants.  Other than the covenants contained in Section 4.13, all covenants of the Company contained in this Section 4 shall terminate upon the earlier of the closing of a Company Sale or the closing of an Initial Public Offering.

 

5.                                       Confidentiality.  Each Purchaser agrees that he, she or it will keep confidential and will not disclose, divulge or use for any purpose, other than to monitor its investment in the Company, any Confidential Information, unless such Confidential Information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 5 by such Purchaser), (b) is or has been independently developed or conceived by the Purchaser without use of the Company’s Confidential Information or (c) is or has been made known or disclosed to the Purchaser by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that a Purchaser may disclose Confidential Information (i) to Purchaser’s attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company, (ii) to any prospective purchaser of any Shares from such Purchaser as long as such prospective purchaser agrees to be bound by the provisions of this Section 5, (iii) to any affiliate, partner, member, stockholder or wholly owned subsidiary of such Purchaser, or (iv) as may otherwise be required by law, provided that the Purchaser takes reasonable steps to minimize the extent of any such required disclosure.  Notwithstanding the foregoing, such information shall not be deemed confidential for the purpose of enforcing this Agreement.

 

6.                                       Transfers of Rights; Calculation of Share Numbers.  Subject to any other restriction on the transfer of Shares contained in this Agreement, the Sixth Amended and Restated Right of First Refusal and Co-Sale Agreement, or the Sixth Amended and Restated Stockholders’ Voting Agreement, (a) the registration rights granted under Article II herein may be assigned to a transferee or assignee (i) who acquires at least 20% of the outstanding shares of Series B Preferred Stock, 20% of the outstanding Series C Preferred Stock, 20% of the outstanding Series D Preferred Stock, 20% of the outstanding Series D1 Preferred Stock, 20% of the outstanding Series E Preferred Stock, 20% of the outstanding Series F Preferred Stock, 20% of the outstanding Series 1 Preferred Stock or 20% of the outstanding Series 2 Preferred Stock, or (ii) who is an Affiliate of Edison, North Atlantic Sevin Rosen or IGC, and (b) the rights granted to any other Purchaser under Article II may be assigned to a transferee or assignee who is reasonably acceptable to the Company in connection with any transfer or assignment of Registrable Shares by any such Purchaser provided, in each case, that the transferor provides the Company with written notice of the proposed transfer, the transferee agrees in writing to be bound by the provisions of this Article II and all of the terms and conditions contained in the Sixth Amended and Restated Stockholders’ Voting Agreement and the Sixth Amended and Restated Right of First Refusal and Co-Sale Agreement.  For the purposes of this Section 6, 

 

 

“Affiliate” means, with respect to any specified Purchaser, any other Purchaser who or which, directly or indirectly, controls, is controlled by or is under common control with such Purchaser, including without limitation any subsidiary, parent, partner, limited partner, retired partner, stockholder, officer, director, manager or member of such Purchaser, and any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, such Purchaser.

 

7.                                       General.

 

7.1                                 Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

7.2                                 Specific Performance.  In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each Purchaser shall be entitled to specific performance of the agreements and obligations of the Company hereunder and to such other injunctive or other equitable relief as may be granted by a court of competent jurisdiction.

 

7.3                                 Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware (without reference to the conflicts of law provisions thereof).

 

7.4                                 Notices.  All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be deemed delivered (i) three business days after being sent by registered or certified mail, return receipt requested, postage prepaid or (ii) one business day after being sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, in each case to the intended recipient as set forth below:

 

If to the Company, at Tangoe, Inc., 35 Executive Boulevard, Orange, CT 06477, Attention: President, or at such other address as may have been furnished in writing by the Company to the other parties hereto, with a copy to Shipman & Goodwin LLP, One Constitution Plaza, Hartford, CT 06103 Attention: Thomas P. Flynn, Esq.; or

 

If to a Series F Holder, Series E Holder, Series D1 Holder, Series D Holder, Series C Holder, Series B Holder, Series A Holder, Series 1 Holder or Series 2 Holder at the address set forth on the applicable Exhibit to this Agreement, or at such other address as may have been furnished in writing by such Series E Holder, Series D1 Holder, Series D Holder, Series C Holder, Series B Holder, Series A Holder, Series 1 Holder or Series 2 Holder to the other parties hereto, with a copy to such additional recipient as set forth on that same Exhibit to this Agreement.

 

Any party may give any notice, request, consent or other communication under this Agreement using any other means (including, without limitation, personal delivery, messenger service, facsimile, first class mail or electronic mail), but except as set forth above no such notice, request, consent or other communication shall be deemed to have been duly given unless and until it is actually received by the party for whom it is intended.  Any party may change the address to which notices, requests, consents or other communications hereunder are to be delivered by giving the other parties notice in the manner set forth in this Section 7.4.

 

 

7.5                                 Complete Agreement.  This Agreement constitutes the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to such subject matter, including without limitation the Prior Agreement.

 

7.6                                 Amendments and Waivers.  Subject to Section 7.11, this Agreement may be amended or terminated and the observance of any term of this Agreement may be waived with respect to all parties to this Agreement (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding Shares representing at least 67% of the voting power of all Shares then held by Purchasers; provided that any (i) amendment, termination or waiver of the terms of Section 2 (or a defined term used therein) that occurs after the closing of the Initial Public Offering shall instead require the written consent of the Company and Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding Registrable Shares representing at least 67% of the voting power of all Registrable Shares then held by all Purchasers, and (ii) any amendment, termination or waiver of the terms of Section 3 (or a defined term used therein) shall instead require the written consent of the Company and Qualified Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding shares representing at least 67% of the voting power of all Shares then held by Qualified Purchasers.  Notwithstanding the foregoing, this Agreement may not be amended or terminated and the observance of any term hereunder may not be waived with respect to any Purchaser without the written consent of such Purchaser unless such amendment, termination or waiver applies to all Purchasers in the same fashion (it being agreed that a waiver of the provisions of Section 3 with respect to a particular transaction shall be deemed to apply to all Qualified Purchasers in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Qualified Purchasers may nonetheless, by agreement with the Company, purchase securities in such transaction).  The Company shall give prompt written notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination or waiver.  Any amendment, termination or waiver effected in accordance with this Section 7.6 shall be binding on all parties hereto, including any party that does not execute such consent.  No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

7.7                                 Pronouns.  Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.

 

7.8                                 Counterparts; Facsimile Signatures.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same document.  This Agreement may be executed by facsimile or other electronic signatures.

 

7.9                                 Section Headings  and References.  The section headings are for the convenience of the parties and in no way alter, modify, amend, limit or restrict the contractual obligations of the parties.  Any reference in this agreement to a particular section or subsection shall refer to a section or subsection of this Agreement, unless specified otherwise.

 

 

7.10                           Prior Agreement; Waiver of Rights.  Any and all rights of first refusal (including all notice requirements relating thereto) contained in the Prior Agreement, including the provisions of Section 3 thereof are hereby irrevocably waived for all Purchasers with respect to the issuance of the Series F Preferred Stock pursuant to the Purchase Agreement.  The Prior Agreement is hereby amended and restated in its entirety in accordance with the provisions hereof.

 

7.11                           Additional Purchasers.  Persons or entities that, after the date hereof, purchase shares of any series of convertible preferred stock of the Company may, with the prior written approval of the Company (but without the need for approval by any other party to this Agreement), become parties to this Agreement by executing and delivering a counterpart signature page, whereupon they shall be deemed “Purchasers” for all purposes of this Agreement.  The Company can amend Exhibit A hereto to reflect the addition of additional Purchasers.

 

 

Executed as of the date first written above.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
TANGOE,   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Albert R. Subbloie
    
	
 
    	
 
    	
Albert   R. Subbloie, Jr.
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PURCHASERS:
    
	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV SBIC, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    
				

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
NORTH   ATLANTIC VENTURE FUND III, A LIMITED PARTNERSHIP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors III, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
NORTH   ATLANTIC SBIC IV, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors III, L.L.C.,
   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROWTH CAPITAL LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa Crawford
    
	
 
    	
Name:
    	
Lisa   Crawford
    
	
 
    	
Title:
    	
‘A’   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROUP, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
INVESTOR   GROUP G.P., LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa Crawford
    
	
 
    	
Name:
    	
Lisa   Crawford
    
	
 
    	
Title:
    	
‘A’   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
AXIOM   VENTURE PARTNERS III, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
AXIOM VENTURE ASSOCIATES, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alan Mendelson
    
	
 
    	
Name:
    	
Alan   Mendelson
    
	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Kenneth   Spitzbard
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Steven   Shwartz
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Gregory   Burkus
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Christopher   T. Fraser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Scott   Douglas Porter
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BARD   FINANCIAL SERVICES, INC., PROFIT SHARING PLAN
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kenneth   Spitzbard
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David   Toole
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
OCI   CHEMICAL CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Scott   Douglas Porter
    
	
 
    	
Title:
    	
Executive   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Donna   Reis
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Joseph   M. Goldberg
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Leonard   J. Goldberg
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jay   Steinberg & Melanie Steinberg (as Joint Tenants with rights of   survivorship)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Victor   Nesi
    
	
 
    	
 
    
	
 
    	
/s/   Albert R. Subbloie, Jr.
    
	
 
    	
Albert   R. Subbloie, Jr.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Stephano   Kim
    
	
 
    	
 
    
	
 
    	
/s/   Gary R. Martino
    
	
 
    	
Gary   R. Martino
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Charles   Gamble
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Andrew   Esposito
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Paul   Schmidt
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Rae   Ko Fairfield
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jon   M. Gassett
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
HO2.1   FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   AFFILIATES FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   ANNEX FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JACQUES   MANAGEMENT, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kevin   Jacques
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAUFMAN   FAMILY LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Cynthia   Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Timothy   Reidy
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VI AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN BAYLESS MANAGEMENT COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN FUND VIII L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
Genera   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VIII AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    
	
 
    	
James   A. Start
    
	
 
    	
 
    	
 
    
	
 
    	
TARRANT   VENTURES PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TEACHERS   INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Panda E.C. Hershey
    
	
 
    	
Name:
    	
Panda   E.C. Hershey
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VENTURE   LENDING & LEASING IV, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VENTURELINK   PARTNERS, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VERTEX   PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

Exhibit A

 

List of Purchasers

 

	
Name and Address
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
North   Atlantic Venture Fund III, L.P. 
   Two City Center 
   Portland, ME 04101 
   Attention: David Coit
    	
 
    	
Albert   R. Subbloie, Jr. 
   11 Bunker Hill Road 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
with   a copy to:
   Nixon Peabody LLP 
   100 Summer Street 
   Boston, MA  02110 
   Attention: David Martland, Esq.
    	
 
    	
Joseph   M. Goldberg 
   130 Renee’s Way 
   Guilford, CT 06437
    
   Gregory Burkus 
   262 Country Drive 
   Weston, MA  02493
    
	
 
    	
 
    	
 
    
	
Edison   Venture Fund IV SBIC, L.P. 
   8270 Greensboro Drive 
   Suite 850 
   McLean, VA  22102
    	
 
    	
David   Toole
   23 Roaring Brook Lane.
   Shelton, CT  06484
    
	
 
    	
 
    	
 
    
	
with   a copy to:

Wilmer   Cutler Pickering Hale and Dorr LLP 
   1600 Tysons Blvd., Suite 1000 
   McLean, Virginia 22102 
   Attention: Gregory J. Ewald, Esq.
    	
 
    	
Leonard   J. Goldberg 
   173 Old Salt Works Road 
   Westbrook, CT  06498
    
   Christopher T. Fraser 
   4608 Palencia Drive 
   Fort Worth, Texas 76126
    
	
 
    	
 
    	
 
    
	
Edison   Venture Fund IV, L.P. 
   8270 Greensboro Drive 
   Suite 850 
   McLean, VA 22102
    	
 
    	
Stephano   Kim
   11 Summerhouse Hill
   Holmdel, NJ  07733
    
	
 
    	
 
    	
 
    
	
with   a copy to:

Wilmer   Cutler Pickering Hale and Dorr LLP 
   1600 Tysons Blvd., Suite 1000 
   McLean, Virginia 22102 
   Attention: Gregory J. Ewald, Esq.
    	
 
    	
Kenneth   Spitzbard
   560 Silver Sands Rd. #411
   East Haven, CT  06512
    
   Gary R. Martino 
   70 Penny Lane 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Bard   Financial Services, Inc, Profit Sharing Plan 
   375 Morgan Lane #108 
   West Haven, CT  06516
    	
 
    	
Chris   DeBenedictus 
   6 Autumn Ridge Road
   Branford, CT  06405
    

 

 

	
Steven   Shwartz 
   5 Emerald Lane 
   Woodbridge, CT  06525
    	
 
    	
Charles   Gamble
   69 Richard Sweet Drive
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Jay   Steinberg & Melanie Steinberg
   (as Joint Tenants with rights of survivorship)
   275 Laurel Lane
   Laurel Hollow, NY  11791
    	
 
    	
Andrew   Esposito 
   319 Bartlett Drive 
   Madison, CT  06443
    
	
 
    	
 
    	
 
    
	
Victor   Nesi
   52 Allwood Road
   Darien, CT  06820
    	
 
    	
Paul   Schmidt
   230 Catherine Drive
   Rocky Hill, CT  06067
    
	
 
    	
 
    	
 
    
	
OCI   Chemical Corporation 
   2 Corporate Drive, Suite 440 
   Shelton, CT 06484 
   Attn.: Scott Douglas Porter, EVP
    	
 
    	
Scott   Douglas Porter 
   36 Silent Grove North 
   Westport, CT  06880
    
	
 
    	
 
    	
 
    
	
Rae   Ko Fairfield
   251 Fern Ridge 
   Ladenberg, PA  19350
    	
 
    	
David   Eldredge 
   45 Indian Trail 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Jon   M. Gassett 
   635 South Road 
   Lisle, Illinois  60532
    	
 
    	
Aaron   Konecky
   706 Old Indian Mill Rd.
   Tabernacle, NJ  08088
    
	
 
    	
 
    	
 
    
	
Axiom   Venture Partners III LP 
   CityPlace II – 17th Floor 
   185 Asylum Street 
   Hartford, CT 06103
    	
 
    	
David   Berten
   c/o Competition Law Group 
   120 S. State Street, Suite 300 
   Chicago, IL 60603
    
	
 
    	
 
    	
 
    
	
Charles   H. Cash 
   3457 Amherst 
   Dallas, Texas  75225
    	
 
    	
Harvey   B. Cash
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    
	
 
    	
 
    	
 
    
	
Convergent Investors VI, L.P. 
    111 Congress Avenue, Suite 3000 
   Austin, Texas 78701
    	
 
    	
CVF,   LLC
   c/o Henry Crown & Company 
   222 N. LaSalle Street 
   Chicago, IL 60601
    
	
 
    	
 
    	
 
    
	
G&H   Partners, L.P. 
   155 Constitution Drive 
   Menlo Park, California 9 4025
    	
 
    	
Dennis   Gorman
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    

 

 

	
HO2.1   Fund, L.P. 
   HO2.1 Affiliates Fund, L.P. 
   HO2.1 Annex Fund, L.P. 
   13455 Noel Road, Suite 1670 
   Dallas, Texas  75240
    	
 
    	
Jacques   Management, LLC 
   14601 Waterview Circle 
   Addison, Texas  75001
    
	
 
    	
 
    	
 
    
	
Investor   Group, L.P. 
   Canada Court, Upland Road 
   St. Peter Port, Guernsey GY1 3BQ 
   Channel Islands
    	
 
    	
Investor   Growth Capital Limited 
   Canada Court, Upland Road 
   St. Peter Port, Guernsey GYI 3BQ 
   Channel Islands
    
	
 
    	
 
    	
 
    
	
copy   to:
    	
 
    	
copy   to:
    
	
 
    	
 
    	
 
    
	
Noah   Walley 
   630 Fifth Avenue
   New York, NY 10111
    	
 
    	
Noah   Walley 
   630 Fifth Avenue 
   New York, NY 10111
    
	
 
    	
 
    	
 
    
	
Kaufman   Family LLC 
   c/o Henry Kaufman & Co. 
   660 Madison Avenue, 15th Floor 
   New York, New York  10021
    	
 
    	
Cynthia   and Timothy Reidy 
   4011 Los Aribas Drive 
   Lafayette, California 94549-2710
    
	
 
    	
 
    	
 
    
	
Paul   F. and Elizabeth T. Reidy 
   c/o PixelWorks 
   7700 SW Mohawk Street 
   Tualatin, Oregon 97062-8120
    	
 
    	
John   P. Reidy
   445 W. Fullerton Avenue
   Elmhurst, Illinois 60126
    
	
 
    	
 
    	
 
    
	
James   F. Rhodes 
   81 Pascal Lane 
   Austin, Texas 78746
    	
 
    	
Sevin   Rosen Fund VI L.P.
   Sevin Rosen VI Affiliates Fund L.P.
   Sevin Rosen Bayless Management Company 
   Sevin Rosen Fund VIII, L.P.
   Sevin Rosen VIII Affiliates Fund, L.P.
   c/o The Sevin Rosen Funds
   13455 Noel Road, Suite 1670
   Dallas, Texas 75240
    
	
 
    	
 
    	
 
    
	
James   A. Star
   c/o Henry Crown & Company 
   222 N. LaSalle Street 
   Chicago, Illinois 60601
    	
 
    	
Tarrant   Venture Partners, L.P. 
   301 Commerce Street, Suite 3300 
   Fort Worth, Texas  76102
    

 

 

	
Teachers   Insurance and Annuity Association of America
   730 Third Ave.
   New York, NY 10017
    	
 
    	
Venture   Lending & Leasing IV, LLC
   2010 North First Street, Suite 310
   San Jose, California 95131
    
	
 
    	
 
    	
 
    
	
VentureLink   Partners, LP
   13455 Noel Road, Suite 1710 
   Dallas, Texas 75240
    	
 
    	
Vertex   Partners, L.P. 
   c/o Henry Kaufman & Co. 
   660 Madison Avenue, 15th Floor
   New York, New York 10021
    

 

 

FIRST AMENDMENT TO EIGHTH 
 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

THIS FIRST AMENDMENT TO EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Amendment”) made this 12th day of March, 2009 by and among TANGOE, INC., a Delaware corporation (the “Corporation”) and THE INDIVIDUALS AND ENTITIES LISTED ON EXHIBIT A ATTACHED HERETO (the “Purchasers”).

 

WHEREAS, the Corporation and the Purchasers are parties to that certain Eighth Amended and Restated Investor Rights Agreement dated as of July 28, 2008 (the “Investor Rights Agreement”);

 

WHEREAS, the Investor Rights Agreement may be amended with the written consent of the Company and the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding Shares representing at least 67% of the voting power of all Shares held by Purchasers;

 

WHEREAS, the undersigned Purchasers represent at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC;

 

NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained in this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.                                      Certain Defined Terms.  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Investor Rights Agreement.

 

2.                                      Amendments to Agreement.  Effective upon the execution of this Amendment, Sections 3.1(h)(IV) and 4.2(b)(IV) of the Investor Rights Agreement are hereby each amended by increasing the number of shares of Common Stock referenced in each such section from 21,428,102 to 23,428,102.

 

3.                                       Miscellaneous Provisions.

 

(a)                                  General.  Except as amended hereby, the Investor Rights Agreement shall continue in full force and effect.

 

(b)                                  Severability of Provisions.  If any one or more provisions of this Amendment shall be declared invalid or unenforceable, the same shall not affect the validity or enforceability of any other provisions of this Amendment.

 

(c)                                  Governing Law.  This Amendment shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware.

 

(d)                                  Entire Agreement.  All prior understandings and agreements between the parties hereto with respect to the transactions contemplated hereby are merged in this Amendment, and this Amendment and the Investor Rights Agreement, as amended hereby, reflect all the understandings with respect to such transactions.

 

 

(e)                                  Counterparts.  This Amendment may be executed in counterparts and delivered via facsimile or other electronic means, each of which when so executed and delivered shall constitute a complete and original instrument but all of which together shall constitute one and the same agreement, and it shall not be necessary when making proof of this Amendment or any counterpart thereof to account for any other counterpart.

 

(f)                                    Effectiveness.  This Amendment shall be effective upon the receipt by the Corporation of an executed signature page from holders of at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC.

 

[Remainder of Page Blank.  Signature Page Follows]

 

 

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be duly executed the day and year first above written.

 

	
 
    	
TANGOE,   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Albert R. Subbloie
    
	
 
    	
 
    	
Name:   Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Title:   CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PURCHASERS:
    
	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P.Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV SBIC, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
AXIOM   VENTURE PARTNERS III, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ASSOCIATES, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ADVISORS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alan Mendelson
    
	
 
    	
Name:
    	
Alan   Mendelson
    
	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Kenneth   Spitzbard
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Steven   Shwartz
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Gregory   Burkus
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Christopher   T. Fraser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Scott   Douglas Porter
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BARD   FINANCIAL SERVICES, INC.,
    
	
 
    	
PROFIT   SHARING PLAN
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kenneth   Spitzbard
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David   Toole
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
HO2.1   FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   AFFILIATES FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   ANNEX FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JACQUES   MANAGEMENT, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kevin   Jacques
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAUFMAN   FAMILY LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Cynthia   Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Timothy   Reidy
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
NORTH   ATLANTIC VENTURE FUND III, A LIMITED PARTNERSHIP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors III, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
NORTH   ATLANTIC SBIC IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors III, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROWTH CAPITAL LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa Crawford
    
	
 
    	
Name:
    	
Lisa   Crawford
    
	
 
    	
Title:
    	
‘A’   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROUP, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROUP G.P., LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa Crawford
    
	
 
    	
Name:
    	
Lisa   Crawford
    
	
 
    	
Title:
    	
‘A’   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VI AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN BAYLESS MANAGEMENT COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN FUND VIII L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VIII AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Eighth Amended and Restated

Investor Rights Agreement]

 

 

Exhibit A

 

List of Purchasers

 

	
Name and Address
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
North   Atlantic Venture Fund III, L.P. 
   Two City Center 
   Portland, ME 04101 
   Attention: David Coit
    	
 
    	
Albert   R. Subbloie, Jr. 
   11 Bunker Hill Road 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
with   a copy to:
   Nixon Peabody LLP 
   100 Summer Street 
   Boston, MA  02110 
   Attention: David Martland, Esq.
    	
 
    	
Joseph   M. Goldberg 
   130 Renee’s Way 
   Guilford, CT 06437
    
   Gregory Burkus 
   262 Country Drive 
   Weston, MA  02493
    
	
 
    	
 
    	
 
    
	
Edison   Venture Fund IV SBIC, L.P. 
   8270 Greensboro Drive 
   Suite 850 
   McLean, VA  22102
    	
 
    	
David   Toole
   23 Roaring Brook Lane.
   Shelton, CT  06484
    
	
 
    	
 
    	
 
    
	
with   a copy to:

Wilmer   Cutler Pickering Hale and Dorr LLP 
   1600 Tysons Blvd., Suite 1000 
   McLean, Virginia 22102 
   Attention: Gregory J. Ewald, Esq.
    	
 
    	
Leonard   J. Goldberg 
   173 Old Salt Works Road 
   Westbrook, CT  06498
    
   Christopher T. Fraser 
   4608 Palencia Drive 
   Fort Worth, Texas 76126
    
	
 
    	
 
    	
 
    
	
Edison   Venture Fund IV, L.P. 
   8270 Greensboro Drive 
   Suite 850 
   McLean, VA  22102
    	
 
    	
Stephano   Kim
   11 Summerhouse Hill
   Holmdel, NJ  07733
    
	
 
    	
 
    	
 
    
	
with   a copy to:

Wilmer   Cutler Pickering Hale and Dorr LLP 
   1600 Tysons Blvd., Suite 1000 
   McLean, Virginia 22102 
   Attention: Gregory J. Ewald, Esq.
    	
 
    	
Kenneth   Spitzbard
   560 Silver Sands Rd. #411
   East Haven, CT  06512
    
   Gary R. Martino 
   70 Penny Lane 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Bard   Financial Services, Inc, Profit Sharing Plan 
   375 Morgan Lane #108 
   West Haven, CT  06516
    	
 
    	
Chris   DeBenedictus 
   6 Autumn Ridge Road
   Branford, CT  06405
    

 

 

	
Steven   Shwartz 
   5 Emerald Lane 
   Woodbridge, CT  06525
    	
 
    	
Charles   Gamble
   69 Richard Sweet Drive
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Jay   Steinberg & Melanie Steinberg
   (as Joint Tenants with rights of survivorship)
   275 Laurel Lane
   Laurel Hollow, NY  11791
    	
 
    	
Andrew   Esposito 
   319 Bartlett Drive 
   Madison, CT  06443
    
	
 
    	
 
    	
 
    
	
Victor   Nesi
   52 Allwood Road
   Darien, CT  06820
    	
 
    	
Paul   Schmidt
   230 Catherine Drive
   Rocky Hill, CT  06067
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Scott   Douglas Porter 
   36 Silent Grove North 
   Westport, CT 06880
    
	
 
    	
 
    	
 
    
	
Rae   Ko Fairfield
   251 Fern Ridge 
   Ladenberg, PA  19350
    	
 
    	
David   Eldredge 
   45 Indian Trail 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Jon   M. Gassett 
   635 South Road 
   Lisle, Illinois 60532
    	
 
    	
Aaron   Konecky
   706 Old Indian Mill Rd.
   Tabernacle, NJ  08088
    
	
 
    	
 
    	
 
    
	
Axiom   Venture Partners III LP 
   CityPlace II – 17th Floor 
   185 Asylum Street 
   Hartford, CT 06103
    	
 
    	
David   Berten
   c/o Competition Law Group 
   120 S. State Street, Suite 300 
   Chicago, IL 60603
    
	
 
    	
 
    	
 
    
	
Charles   H. Cash 
   3457 Amherst 
   Dallas, Texas  75225
    	
 
    	
Harvey   B. Cash
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    
	
 
    	
 
    	
 
    
	
Convergent Investors VI, L.P. 
    111 Congress Avenue, Suite 3000 
   Austin, Texas 78701
    	
 
    	
CVF,   LLC
   c/o Henry Crown & Company 
   222 N. LaSalle Street 
   Chicago, IL 60601
    
	
 
    	
 
    	
 
    
	
G&H   Partners, L.P. 
   155 Constitution Drive 
   Menlo Park, California  94025
    	
 
    	
Dennis   Gorman
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    

 

 

	
HO2.1   Fund, L.P. 
   HO2.1 Affiliates Fund, L.P. 
   HO2.1 Annex Fund, L.P. 
   13455 Noel Road, Suite 1670 
   Dallas, Texas  75240
    	
 
    	
Jacques   Management, LLC 
   14601 Waterview Circle 
   Addison, Texas  75001
    
	
 
    	
 
    	
 
    
	
Investor   Group, L.P. 
   Canada Court, Upland Road 
   St. Peter Port, Guernsey GY1 3BQ 
   Channel Islands
    	
 
    	
Investor   Growth Capital Limited 
   Canada Court, Upland Road 
   St. Peter Port, Guernsey GYI 3BQ 
   Channel Islands
    
	
 
    	
 
    	
 
    
	
copy   to:
    	
 
    	
copy   to:
    
	
 
    	
 
    	
 
    
	
Noah   Walley 
   630 Fifth Avenue
   New York, NY 10111
    	
 
    	
Noah   Walley 
   630 Fifth Avenue 
   New York, NY 10111
    
	
 
    	
 
    	
 
    
	
Kaufman   Family LLC 
   c/o Henry Kaufman & Co. 
   660 Madison Avenue, 15th Floor 
   New York, New York  10021
    	
 
    	
Cynthia   and Timothy Reidy 
   4011 Los Aribas Drive 
   Lafayette, California 94549-2710
    
	
 
    	
 
    	
 
    
	
Paul   F. and Elizabeth T. Reidy 
   c/o PixelWorks 
   7700 SW Mohawk Street 
   Tualatin, Oregon 97062-8120
    	
 
    	
John   P. Reidy
   445 W. Fullerton Avenue
   Elmhurst, Illinois 60126
    
	
 
    	
 
    	
 
    
	
James   F. Rhodes 
   81 Pascal Lane 
   Austin, Texas 78746
    	
 
    	
Sevin   Rosen Fund VI L.P.
   Sevin Rosen VI Affiliates Fund L.P.
   Sevin Rosen Bayless Management Company 
   Sevin Rosen Fund VIII, L.P.
   Sevin Rosen VIII Affiliates Fund, L.P.
   c/o The Sevin Rosen Funds
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    
	
 
    	
 
    	
 
    
	
James   A. Star
   c/o Henry Crown & Company 
   222 N. LaSalle Street 
   Chicago, Illinois 60601
    	
 
    	
Tarrant   Venture Partners, L.P. 
   301 Commerce Street, Suite 3300 
   Fort Worth, Texas  76102
    
	
 
    	
 
    	
 
    
	
Teachers   Insurance and Annuity Association of America
   730 Third Ave.
   New York, NY 10017
    	
 
    	
Venture   Lending & Leasing IV, LLC
   2010 North First Street, Suite 310
   San Jose, California 95131
    

 

 

	
VentureLink   Partners, LP
   13455 Noel Road, Suite 1710 
   Dallas, Texas 75240
    	
 
    	
Vertex   Partners, L.P. 
   c/o Henry Kaufman & Co. 
   660 Madison Avenue, 15th Floor
   New York, New York  10021
    

 

 

SECOND AMENDMENT TO EIGHTH 
 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

THIS SECOND AMENDMENT TO EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Amendment”) made this 15th day of October, 2009 by and among TANGOE, INC., a Delaware corporation (the “Corporation”) and THE INDIVIDUALS AND ENTITIES LISTED ON EXHIBIT A ATTACHED HERETO (the “Purchasers”).

 

WHEREAS, the Corporation and the Purchasers are parties to that certain Eighth Amended and Restated Investor Rights Agreement dated as of July 28, 2008 (the “Investor Rights Agreement”);

 

WHEREAS, the Investor Rights Agreement may be amended with the written consent of the Company and the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding Shares representing at least 67% of the voting power of all Shares held by Purchasers;

 

WHEREAS, the undersigned Purchasers represent at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC;

 

NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained in this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.                                       Certain Defined Terms.  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Investor Rights Agreement.

 

2.                                      Amendments to Agreement.

 

(a)                                  The definition of “Warrants” set forth in Section 1 of the Investor Rights Agreement is hereby amended by adding the following clause to the end of that definition:

 

“and (ix) that certain warrant to purchase Common Stock issued to International Business Machines Corporation in September, 2009 (the “IBM Warrant”).

 

(b)                                 The rights of the Qualified Purchasers under Section 3.1 of the Investor Rights Agreement shall not apply to the IBM Warrant.

 

(c)                                  The Purchasers hereby consent to the Joinder to the IRA in the form attached to this Consent as Exhibit B.

 

3.                                       Miscellaneous Provisions.

 

(a)                                  General.  Except as amended hereby, the Investor Rights Agreement shall continue in full force and effect.

 

 

(b)                                 Sever ability of Provisions.  If any one or more provisions of this Amendment shall be declared invalid or unenforceable, the same shall not affect the validity or enforceability of any other provisions of this Amendment.

 

(c)                                  Governing Law.  This Amendment shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware.

 

(d)                                 Entire Agreement.  All prior understandings and agreements between the parties hereto with respect to the transactions contemplated hereby are merged in this Amendment, and this Amendment and the Investor Rights Agreement, as amended hereby, reflect all the understandings with respect to such transactions.

 

(e)                                  Counterparts.  This Amendment may be executed in counterparts and delivered via facsimile or other electronic means, each of which when so executed and delivered shall constitute a complete and original instrument but all of which together shall constitute one and the same agreement, and it shall not be necessary when making proof of this Amendment or any counterpart thereof to account for any other counterpart.

 

(f)                                    Effectiveness.  This Amendment shall be effective upon the receipt by the Corporation of an executed signature page from holders of at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC.

 

[Remainder of Page Blank.  Signature Page Follows]

 

 

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be duly executed the day and year first above written.

 

	
 
    	
TANGOE,   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Name:
    	
Albert   R. Subbloie, Jr.
    
	
 
    	
 
    	
Title:
    	
President,   CEO
    
	
 
    	
 
    	
 
    
	
 
    	
PURCHASERS:
    
	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV SBIC, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Second Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
NORTH   ATLANTIC VENTURE FUND in, A LIMITED PARTNERSHIP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors III, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
NORTH   ATLANTIC SBIC IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors SBIC.IV, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROWTH CAPITAL LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa Barnett
    
	
 
    	
Name:
    	
Lisa   Barnett
    
	
 
    	
Title:
    	
‘A’   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROUP, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
INVESTOR   GROUP G.P., LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dr. A. Honerwadel
    
	
 
    	
Name:
    	
Dr.   A. Honerwadel
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    

 

[Signature Page to Second Amendment to Eighth Amended an Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VI AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN BAYLESS MANAGEMENT  COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN FUND VIII L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VIII AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Second Amendment to Eighth Amended an Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P., as proxy for the Holders set forth on Exhibit C   hereto
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:
    	
John   V. Jaggers
    
	
 
    	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
AXIOM   VENTURE PARTNERS HI, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
AXIOM VENTURE ASSOCIATES, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ADVISORS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Alan   Mendelson
    
	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Steven   Shwartz
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Gregory   Burkus
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Christopher   T. Fraser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Scott   Doualas Porter
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David   Toole
    

 

[Signature Page to Second Amendment to Eighth Amended an Restated

Investor Rights Agreement]

 

 

	
 
    	
HO2.1   FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
/s/   Daniel T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   AFFILIATES FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
/s/   Daniel T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   ANNEX FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
/s/   Daniel T. Owen
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
JACQUES   MANAGEMENT, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kevin   Jacques
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAUFMAN   FAMILY LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Cynthia   Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Timothy   Reidy
    

 

[Signature Page to Second Amendment to Eighth Amended an Restated

Investor Rights Agreement]

 

 

Exhibit A

 

List of Purchasers

 

	
Name and Address
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
North   Atlantic Venture Fund III, L.P. 
   Two City Center 
   Portland, ME 04101 
   Attention: David Coit
    	
 
    	
Albert   R. Subbloie, Jr. 
   11 Bunker Hill Road 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
with   a copy to:
   Nixon Peabody LLP 
   100 Summer Street 
   Boston, MA  02110 
   Attention: David Martland, Esq.
    	
 
    	
Joseph   M. Goldberg 
   130 Renee’s Way 
   Guilford, CT 06437
    
   Gregory Burkus 
   262 Country Drive 
   Weston, MA  02493
    
	
 
    	
 
    	
 
    
	
Edison   Venture Fund IV SBIC, L.P. 
   8270 Greensboro Drive 
   Suite 850 
   McLean, VA  22102
    	
 
    	
David   Toole
   23 Roaring Brook Lane.
   Shelton, CT  06484
    
	
 
    	
 
    	
 
    
	
with   a copy to:

Wilmer   Cutler Pickering Hale and Dorr LLP 
   1600 Tysons Blvd., Suite 1000 
   McLean, Virginia 22102 
   Attention: Gregory J. Ewald, Esq.
    	
 
    	
Leonard   J. Goldberg 
   173 Old Salt Works Road 
   Westbrook, CT  06498
    
   Christopher T. Fraser 
   4608 Palencia Drive 
   Fort Worth, Texas 76126
    
	
 
    	
 
    	
 
    
	
Edison   Venture Fund IV, L.P. 
   8270 Greensboro Drive 
   Suite 850 
   McLean, VA  22102
    	
 
    	
Stephano   Kim
   11 Summerhouse Hill
   Holmdel, NJ  07733
    
	
 
    	
 
    	
 
    
	
with   a copy to:

Wilmer   Cutler Pickering Hale and Dorr LLP 
   1600 Tysons Blvd., Suite 1000 
   McLean, Virginia 22102 
   Attention: Gregory J. Ewald, Esq.
    	
 
    	
Kenneth   Spitzbard
   560 Silver Sands Rd. #411
   East Haven, CT  06512
    
   Gary R. Martino 
   70 Penny Lane 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Bard   Financial Services, Inc, Profit Sharing Plan 
   375 Morgan Lane #108 
   West Haven, CT  06516
    	
 
    	
Chris   DeBenedictus 
   6 Autumn Ridge Road
   Branford, CT  06405
    

 

 

	
Steven   Shwartz 
   5 Emerald Lane 
   Woodbridge, CT  06525
    	
 
    	
Charles   Gamble
   69 Richard Sweet Drive
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Jay   Steinberg & Melanie Steinberg
   (as Joint Tenants with rights of survivorship)
   275 Laurel Lane
   Laurel Hollow, NY  11791
    	
 
    	
Andrew   Esposito 
   319 Bartlett Drive 
   Madison, CT  06443
    
	
 
    	
 
    	
 
    
	
Victor   Nesi
   52 Allwood Road
   Darien, CT  06820
    	
 
    	
Paul   Schmidt
   230 Catherine Drive
   Rocky Hill, CT  06067
    
   Scott Douglas Porter 
   36 Silent Grove North 
   Westport, CT  06880
    
	
 
    	
 
    	
 
    
	
Rae   Ko Fairfield
   251 Fern Ridge 
   Ladenberg, PA  19350
    	
 
    	
David   Eldredge 
   45 Indian Trail 
   Woodbridge, CT  06525
    
	
 
    	
 
    	
 
    
	
Jon   M. Gassett 
   635 South Road 
   Lisle, Illinois  60532
    	
 
    	
Aaron   Konecky
   706 Old Indian Mill Rd.
   Tabernacle, NJ  08088
    
	
 
    	
 
    	
 
    
	
Axiom   Venture Partners III LP 
   CityPlace II – 17th Floor 
   185 Asylum Street 
   Hartford, CT 06103
    	
 
    	
David   Berten
   c/o Competition Law Group 
   120 S. State Street, Suite 300 
   Chicago, IL 60603
    
	
 
    	
 
    	
 
    
	
Charles   H. Cash 
   3457 Amherst 
   Dallas, Texas  75225
    	
 
    	
Harvey   B. Cash
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    
   CVF, LLC
   c/o Henry Crown & Company 
   222 N. LaSalle Street 
   Chicago, IL 60601
    
	
 
    	
 
    	
 
    
	
G&H   Partners, L.P. 
   155 Constitution Drive 
   Menlo Park, California  94025
    	
 
    	
Dennis   Gorman
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    

 

 

	
HO2.1   Fund, L.P. 
   HO2.1 Affiliates Fund, L.P. 
   HO2.1 Annex Fund, L.P. 
   13455 Noel Road, Suite 1670 
   Dallas, Texas  75240
    	
 
    	
Jacques   Management, LLC 
   14601 Waterview Circle 
   Addison, Texas  75001
    
	
 
    	
 
    	
 
    
	
Investor   Group, L.P. 
   Canada Court, Upland Road 
   St. Peter Port, Guernsey GY1 3BQ 
   Channel Islands
    	
 
    	
Investor   Growth Capital Limited 
   Canada Court, Upland Road 
   St. Peter Port, Guernsey GYI 3BQ 
   Channel Islands
    
	
 
    	
 
    	
 
    
	
copy   to:
    	
 
    	
copy   to:
    
	
 
    	
 
    	
 
    
	
Noah   Walley 
   630 Fifth Avenue
   New York, NY 10111
    	
 
    	
Noah   Walley 
   630 Fifth Avenue 
   New York, NY 10111
    
	
 
    	
 
    	
 
    
	
Kaufman   Family LLC 
   c/o Henry Kaufman & Co. 
   660 Madison Avenue, 15th Floor 
   New York, New York  10021
    	
 
    	
Cynthia   and Timothy Reidy 
   4011 Los Aribas Drive 
   Lafayette, California 94549-2710
    
	
 
    	
 
    	
 
    
	
Paul   F. and Elizabeth T. Reidy 
   c/o PixelWorks 
   7700 SW Mohawk Street 
   Tualatin, Oregon 97062-8120
    	
 
    	
John   P. Reidy
   445 W. Fullerton Avenue
   Elmhurst, Illinois 60126
    
	
 
    	
 
    	
 
    
	
James   F. Rhodes 
   81 Pascal Lane 
   Austin, Texas 78746
    	
 
    	
Sevin   Rosen Fund VI L.P.
   Sevin Rosen VI Affiliates Fund L.P.
   Sevin Rosen Bayless Management Company 
   Sevin Rosen Fund VIII, L.P.
   Sevin Rosen VIII Affiliates Fund, L.P.
   c/o The Sevin Rosen Funds
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    
	
 
    	
 
    	
 
    
	
James   A. Star
   c/o Henry Crown & Company 
   222 N. LaSalle Street 
   Chicago, Illinois 60601
    	
 
    	
Tarrant   Venture Partners, L.P. 
   301 Commerce Street, Suite 3300 
   Fort Worth, Texas  76102
    
	
 
    	
 
    	
 
    
	
Teachers   Insurance and Annuity Association of America
   730 Third Ave.
   New York, NY 10017
    	
 
    	
Venture   Lending & Leasing IV, LLC
   2010 North First Street, Suite 310
   San Jose, California 95131
    

 

 

	
VentureLink   Partners, LP
   13455 Noel Road, Suite 1710 
   Dallas, Texas 75240
    	
 
    	
Vertex   Partners, L.P. 
   c/o Henry Kaufman & Co. 
   660 Madison Avenue, 15th Floor
   New York, New York  10021
    
	
 
    	
 
    	
 
    
	
Barnett   L. Gershen
    	
 
    	
Nuevo   Capital Partners, L.P.
    
	
 
    	
 
    	
 
    
	
Brian   R. Smith
    	
 
    	
Ram   Funds Ltd.
    
	
 
    	
 
    	
 
    
	
Bruce   E. Pendleton Revocable Trust Bruce E. Pendleton, Trustee
    	
 
    	
Richard   R. Arnoldy
    
	
 
    	
 
    	
 
    
	
Cedar   Equities, LLC
    
   Covenant Foundation, Inc.
    	
 
    	
Robert   A. Shaheen
   Robert E. Kresko Revocable Trust DTD
   12.22.94
    
	
 
    	
 
    	
 
    
	
Daniel   H. Bathon, Jr.
    	
 
    	
Spaulding   Investment Limited Partnership
    
	
 
    	
 
    	
 
    
	
Dave   Ford
    	
 
    	
ST   Investments Limited Partnership
    
	
 
    	
 
    	
 
    
	
David   L. Hatton
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
David   M. Weekley
    	
 
    	
Stephen   J. Shaper
   The John Mansour Family Limited
   Partnership
    
	
 
    	
 
    	
 
    
	
David   Weekley Family Foundation
    	
 
    	
Thomas   Bailey
    
	
 
    	
 
    	
 
    
	
Gary   W and Lydia G Junek
    	
 
    	
Thomas   W. Lyles Jr.
    
	
 
    	
 
    	
 
    
	
Geejohn   LLC
    	
 
    	
William   R. Camp
    
	
 
    	
 
    	
 
    
	
Geoffrey   B. Hoese
    	
 
    	
Z   Start I, L.P.
    
	
 
    	
 
    	
 
    
	
Henry   James
    	
 
    	
Nuevo   Private Equities LP
    
	
 
    	
 
    	
 
    
	
Hines   Investment Holdings Limited Partnership
    	
 
    	
Mission   City Management Inc.  
    
	
 
    	
 
    	
 
    
	
JDC   Management, Inc.
    	
 
    	
Middlemarch   Capital Corporation
    
	
 
    	
 
    	
 
    
	
JMM   PHLP, Ltd.
    	
 
    	
JAMA   1 Ltd.  
    
	
 
    	
 
    	
 
    
	
James   P Wilson, individually
    	
 
    	
Stephen   Yurco
    
	
 
    	
 
    	
 
    
	
Kenneth   Rivera
    	
 
    	
BF   Private Capital, LP
    
	
 
    	
 
    	
 
    
	
LLG   Partners, Ltd.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Barnett   L. Gershen
    	
 
    	
 
    

 

 

EXHIBIT B

 

Form of Joinder

 

 

TANGOE, INC.

 

JOINDER AGREEMENT TO THE 
 EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

This JOINDER AGREEMENT (this “Agreement”) is hereby entered into as of October 9, 2009 by and among Tangoe, Inc., a Delaware corporation (the “Company”) and International Business Machines Corporation, a New York corporation (“IBM”).

 

RECITALS:

 

WHEREAS, the Company and certain of its stockholders are parties to that certain Eighth Amended and Restated Investor Rights Agreement, dated as of July 28, 2008, as amended, attached hereto as Exhibit A (the “Investor Rights Agreement”); and

 

WHEREAS, IBM may acquire shares in the Company pursuant to that certain Warrant Agreement, dated as of October 9, 2009 (the “Warrant Agreement”) pursuant to which the Company has granted to IBM the right to purchase shares of the Company’s Common Stock, par value $.0001 (the “Warrant Shares”); and

 

WHEREAS, the Company and IBM desire that IBM have rights in connection with the Warrant Shares under the Investor Rights Agreement.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Joinder to Investor Rights Agreement.  IBM hereby joins and becomes party to the Investor Rights Agreement and shall be deemed a “Purchaser” thereunder, and hereby agrees to be bound by all obligations of a Purchaser pursuant to the Investor Rights Agreement, solely in connection with the following sections of the Investor Rights Agreement:  (a) Section 2 excluding subsection 2.1(a); (b) Section 3; (c) Section 4.6; (d) Section 5 and (e) Section 6.  The Company acknowledges and agrees that IBM shall be deemed a party to the Investor Rights Agreement as a Purchaser thereunder for purposes of the foregoing sections of the Investor Rights Agreement.

 

2.                                       Continuing Effect.  Other than as modified in accordance with the foregoing provision, the terms of the Investor Rights Agreement remain in full force and effect.

 

3.                                       Counterparts; Facsimile Signatures.  This Agreement may be executed in any number of counterparts and delivered via facsimile or other electronic means, each of which shall be deemed to be an original, and all of which shall constitute one and the same document.

 

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the year and date first set forth above.

 

	
 
    	
IBM:
    
	
 
    	
 
    
	
 
    	
INTERNATIONAL   BUSINESS MACHINES CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Elias Mendoza
    
	
 
    	
 
    	
Name:   Elias Mendoza
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
TANGOE,   INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Albert R. Subbloie
    
	
 
    	
 
    	
Name:   Albert R. Subbloie
    
	
 
    	
 
    	
Title:   President & CEO
    

 

Signature Page to Joinder

 

 

EXHIBIT C

 

Holders that have granted a voting proxy to Sevin Rosen Fund VI L.P.

 

Barnett L. Gershen

Brian R. Smith

Bruce E. Pendleton Revocable Trust Bruce E. Pendleton, Trustee

Cedar Equities, LLC

Covenant Foundation, Inc.

Daniel H. Bathon, Jr.

Dave Ford

David L. Hatton

David M. Weekley

David Weekley Family Foundation

Gary W and Lydia G Junek

Geejohn LLC

Geoffrey B. Hoese

Henry James

Hines Investment Holdings Limited Partnership

JDC Management, Inc.

JMM PHLP, Ltd.

James P Wilson, individually

Kenneth Rivera

LLG Partners, Ltd.

Nuevo Capital Partners, L.P.

Ram Funds Ltd.

Richard R. Arnoldy

Robert A. Shaheen

Robert E. Kresko Revocable Trust DTD 12.22.94

Spaulding Investment Limited Partnership

ST Investments Limited Partnership

Stephen J. Shaper

The John Mansour Family Limited Partnership

Thomas Bailey

 

 

Thomas W. Lyles Jr.

William R. Camp

Z Start I, LP.

Nuevo Private Equities LP

Mission City Management Inc,

Middlemarch Capital Corporation

JAMA 1 Ltd.

Stephen Yurco

BF Private Capital, LP

 

 

TANGOE, INC.

 

JOINDER AGREEMENT TO THE

EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

This JOINDER AGREEMENT (this “Agreement”) is hereby entered into as of April 14, 2010 by and between Tangoe, Inc., a Delaware corporation (the “Company”), and Venture Lending & Leasing IV, LLC, a Delaware limited liability company (“Venture Lending”).

 

RECITALS:

 

WHEREAS, the Company and certain of its stockholders are parties to that certain Eighth Amended and Restated Investor Rights Agreement, dated as of July 28, 2008, as amended, attached hereto as Exhibit A (the “Investor Rights Agreement”); and

 

WHEREAS, Venture Lending may acquire shares in the Company pursuant to those two certain Warrants to Purchase Shares of Preferred Stock, dated July 28, 2005 and June 7, 2006, originally issued by Traq Wireless, Inc. (“Traq”) and subsequently assumed by the Company in connection with the acquisition of Traq by the Company by way of merger (the “Traq Merger”) of Traq with an acquisition subsidiary of the Company (the “Warrant Agreements”), pursuant to which Venture Lending has the right to purchase shares of the Company’s Series 2 Convertible Preferred Stock, par value $.0001 per share (the “Warrant Shares”), which Warrant Shares are convertible into shares of the Company’s Common Stock, par value $.0001 per share; and

 

WHEREAS, Section 9 of each of the Warrant Agreements grants to Venture Leasing certain piggy-back registration rights by reference to that certain Amended and Restated Investor Rights Agreement, dated as of July 22, 2005, among Traq and certain of its stockholders (the “Traq IRA”); and

 

WHEREAS, in connection with the Traq Merger, the Traq IRA terminated, and the Company and Venture Lending now wish to substitute registration rights under the Investor Rights Agreement for the registration rights set forth in Section 9 of the Warrant Agreements and the Traq IRA.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Joinder to Investor Rights Agreement.  Venture Lending hereby joins and becomes party to the Investor Rights Agreement and shall be deemed a “Purchaser” thereunder, and hereby agrees to be bound by all obligations of a Purchaser pursuant to the Investor Rights Agreement, but solely in connection with Sections 2.2 through 2.11, inclusive, and Sections 5 and 6 of the Investor Rights Agreement and any general provisions and definitions related to such Sections, such that Venture Lending will have incidental registration rights and agrees to the “lock up,” indemnification, confidentiality and other related provisions set forth in such Sections.  The Company acknowledges and agrees that Venture Lending shall be deemed a party to the Investor Rights Agreement as a Purchaser thereunder for purposes of the foregoing sections of the Investor Rights Agreement.

 

 

2.                                       Counterparts; Facsimile Signatures.  This Agreement may be executed in any number of counterparts and delivered via facsimile or other electronic means, each of which shall be deemed to be an original, and all of which shall constitute one and the same document.

 

[Remainder of Page Intentionally Left Blank]

 

2

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the year and date first set forth above.

 

 

	
 
    	
VENTURE   LENDING & LEASING IV, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Wanek
    
	
 
    	
 
    	
Name:   David Wanek
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TANGOE,   INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Name:   Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Title:   President and CEO
    

 

 

EXHIBIT A

 

EIGHTH AMENDED AND RESTATED
  INVESTOR RIGHTS AGREEMENT, AS AMENDED

 

 

THIRD AMENDMENT TO EIGHTH

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

THIS THIRD AMENDMENT TO EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Amendment”) made this 16th day of April, 2010 by and among TANGOE, INC., a Delaware corporation (the “Corporation”), and THE INDIVIDUALS AND ENTITIES LISTED ON EXHIBIT A ATTACHED HERETO (the “Purchasers”).

 

WHEREAS, the Corporation and the Purchasers are parties to that certain Eighth Amended and Restated Investor Rights Agreement dated as of July 28, 2008 as amended by that certain First Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of March 12, 2009 and as most recently amended by that certain Second Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of October 15, 2009 (as amended, the “Investor Rights Agreement”);

 

WHEREAS, the Investor Rights Agreement may be amended with the written consent of the Company and the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding Shares representing at least 67% of the voting power of all Shares held by Purchasers;

 

WHEREAS, the undersigned Purchasers represent at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC;

 

NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained in this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.                                      Certain Defined Terms.  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Investor Rights Agreement.

 

2.                                      Amendments to Agreement.

 

(a)                                  Sections 3.1(h)(iv) and 4.2(b)(iv) of the Investor Rights Agreement are hereby each amended by increasing the number of shares of Common Stock referenced in each such section from 23,428,102 to 27,329,856.

 

(b)                                 Section 4.16 of the Investor Rights Agreement is hereby deleted in its entirety and replaced with the following:

 

“4.16       Termination of Covenants.  All covenants of the Company contained in this Section 4 shall terminate upon the earlier of the closing of a Company Sale or the closing of an Initial Public Offering.”

 

 

3.                                       Miscellaneous Provisions.

 

(a)       General.  Except as amended hereby, the Investor Rights Agreement shall continue in full force and effect.

 

(b)       Severability of Provisions.  If any one or more provisions of this Amendment shall be declared invalid or unenforceable, the same shall not affect the validity or enforceability of any other provisions of this Amendment.

 

(c)       Governing Law.  This Amendment shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware.

 

(d)       Entire Agreement.  All prior understandings and agreements between the parties hereto with respect to the transactions contemplated hereby are merged in this Amendment, and this Amendment and the Investor Rights Agreement, as amended hereby, reflect all the understandings with respect to such transactions.

 

(e)       Counterparts.  This Amendment may be executed in counterparts and delivered via facsimile or other electronic means, each of which when so executed and delivered shall constitute a complete and original instrument but all of which together shall constitute one and the same agreement, and it shall not be necessary when making proof of this Amendment or any counterpart thereof to account for any other counterpart.

 

(f)        Effectiveness.  This Amendment shall be effective upon the receipt by the Corporation of an executed signature page from holders of at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC.

 

[Remainder of Page Blank. Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be duly executed the day and year first above written.

 

	
 
    	
TANGOE, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Albert R.   Subbloie, Jr.
    
	
 
    	
 
    	
Name: Albert R.   Subbloie, Jr.
    
	
 
    	
 
    	
Title: President and   CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PURCHASERS:
    
	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By its   General Partner
    
	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Gary P. Golding
    
	
 
    	
Name:
    	
Gary P. Golding
    
	
 
    	
Title: 
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV SBIC, L.P.
    
	
 
    	
 
    
	
 
    	
By its   General Partner
    
	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Gary P. Golding
    
	
 
    	
Name:
    	
Gary P. Golding
    
	
 
    	
Title:
    	
General Partner
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
NORTH ATLANTIC VENTURE FUND   III, A LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:
    	
North Atlantic   Investors III, L.L.C.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Coit
    
	
 
    	
Name:
    	
David M. Coit
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NORTH ATLANTIC SBIC IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
North Atlantic   Investors SBIC IV, L.L.C.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Coit
    
	
 
    	
Name:
    	
David M. Coit
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INVESTOR GROWTH CAPITAL LIMITED
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lisa Barnett
    
	
 
    	
Name:
    	
Lisa Barnett
    
	
 
    	
Title:
    	
‘A’ Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dr. A. Hünerwadel
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
INVESTOR GROUP, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
IGVC LP, its General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
INVESTOR GROUP GmbH,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert de Heus
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dr. A. Hünerwadel
    
	
 
    	
Name:
    	
Dr. A. Hünerwadel
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN ROSEN FUND VI L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon W.   Bayless
    
	
 
    	
 
    	
Name: Jon   W. Bayless
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VI AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
SRB Associates VI L.P.
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon W.   Bayless
    
	
 
    	
 
    	
Name:   Jon W. Bayless
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    
	
 
    	
SEVIN ROSEN BAYLESS MANAGEMENT COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon W.   Bayless
    
	
 
    	
 
    	
Name:   Jon W. Bayless
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    
	
 
    	
SEVIN ROSEN FUND VIII, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon W. Bayless
    
	
 
    	
 
    	
Name:   Jon W. Bayless
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN ROSEN VIII AFFILIATES   FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon W. Bayless
    
	
 
    	
 
    	
Name:   Jon W. Bayless
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    
	
 
    	
SEVIN ROSEN FUND VI L.P., as   Proxy for the Purchasers Indicated on Exhibit A-1
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon W. Bayless
    
	
 
    	
 
    	
Name:   Jon W. Bayless
    
	
 
    	
 
    	
Title:   General Partner
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
AXIOM VENTURE PARTNERS III,   L.P.
    
	
 
    	
By its   General Partner
    
	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ASSOCIATES, L.P.
    
	
 
    	
By its   General Partner
    
	
 
    	
 
    
	
 
    	
AXIOM VENTURE ADVISORS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Alan Mendelson
    
	
 
    	
Name: 
    	
Alan Mendelson
    
	
 
    	
Title: 
    	
Chairman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Kenneth Spitzbard
    
	
 
    	
Kenneth Spitzbard
    
	
 
    	
 
    
	
 
    	
BARD FINANCIAL SERVICES, INC.,
    
	
 
    	
PROFIT SHARING PLAN
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kenneth Spitzbard,   Trustee
    
	
 
    	
Name: 
    	
Kenneth Spitzbard
    
	
 
    	
Title 
    	
Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Steven Shwartz 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Gregory Burkus 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Christopher T. Fraser 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Scott Douglas Porter 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David Toole  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Joseph M. Goldberg
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
/s/ Leonard J. Goldberg
    
	
 
    	
Leonard J. Goldberg
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Jay Steinberg  /s/   Melanie Steinberg
    
	
 
    	
Jay Steinberg &   Melanie Steinberg
    
	
 
    	
(as Joint Tenants with   rights of survivorship) 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Victor Nesi
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Albert R. Subbloie,
    
	
 
    	
Albert R. Subbloie, Jr.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Stephano Kim
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Gary R. Martino
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Charles Gamble
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Andrew Esposito
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Paul Schmidt
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Rae Ko Fairfield
    
	
 
    	
Rae Ko Fairfield
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jon M. Gassett
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ David Eldredge
    
	
 
    	
David Eldredge
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    
	
 
    	
Aaron Konecky
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Christopher DeBenedictis
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David Berten
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Charles H. Cash
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Harvey B. Cash
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CVF, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
G&H PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dennis Gorman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
HO2.1 FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daniel T. Owen
    
	
 
    	
 
    	
Name:
    	
Daniel T. Owen
    
	
 
    	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
HO2.1 AFFILIATES FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daniel T. Owen
    
	
 
    	
 
    	
Name:
    	
Daniel T. Owen
    
	
 
    	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
HO2.1 ANNEX FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daniel T. Owen
    
	
 
    	
 
    	
Name:
    	
Daniel T. Owen
    
	
 
    	
 
    	
Title:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
JACQUES MANAGEMENT, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Kevin Jacques
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
KAUFMAN FAMILY LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Cynthia Reidy
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Timothy Reidy
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul F. Reidy
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Elizabeth T. Reidy
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
John P. Reidy
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
James F. Rhodes
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
James A. Star
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TARRANT VENTURES PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TEACHERS INSURANCE AND ANNUITY   ASSOCIATION OF AMERICA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Panda E.C. Hershey
    
	
 
    	
 
    	
Name:
    	
Panda E.C. Hershey
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    	
VENTURELINK PARTNERS, LP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
VERTEX PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
INTERNATIONAL BUSINESS MACHINES   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
INTERNODED, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Julie   L. Palen, President
    

 

[Signature Page to Third Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

Exhibit A

 

List of Purchasers

 

Name and Address

 

	
North Atlantic Venture   Fund III, L.P.

Two City Center

Portland, ME 04101

Attention: David Coit
    	
 
    	
Albert R. Subbloie, Jr.

10 Laurel Avenue

Milford, CT 06460
    
	
 
    	
 
    	
Joseph M. Goldberg
    
	
North Atlantic SBIC IV,   L.P.

Two City Center

Portland, ME 04101

Attention: David Coit
    	
 
    	
130 Renee’s Way

Guilford, CT 06437

 

Gregory Burkus
    
	
 
    	
 
    	
262 Country Drive
    
	
with   a copy to:
    	
 
    	
Weston, MA 02493
    
	
 
    	
 
    	
 
    
	
Nixon   Peabody LLP
    	
 
    	
 
    
	
100   Summer Street
    	
 
    	
David Toole
    
	
Boston,   MA 02110
    	
 
    	
23 Roaring Brook Lane
    
	
Attention:   David Martland, Esq.
    	
 
    	
Shelton, CT  06484
    
	
 
    	
 
    	
 
    
	
Edison Venture Fund IV   SBIC, L.P.

8270 Greensboro Drive

Suite 850

McLean, VA 22102
    	
 
    	
 

Leonard J. Goldberg

173 Old Salt Works Road

Westbrook, CT 06498
    
	
 
    	
 
    	
 
    
	
Edison Venture Fund IV,   L.P.

8270 Greensboro Drive

Suite 850

McLean, VA 22102

 

with   a copy to:

 

Wilmer   Cutler Pickering Hale and Dorr LLP

1600   Tysons Blvd., Suite 1000

McLean,   Virginia 22102

Attention:   Gregory J. Ewald, Esq.
    	
 
    	
Christopher T. Fraser

9448 Bella Terra Drive

Fort Worth, Texas 76126

 

Stephano Kim

11 Summerhouse Hill

Holmdel, NJ 07733

 

Christopher   DeBenedictis

6 Autumn Ridge Road
   Branford, CT 06405
    
	
 
    	
 
    	
 
    
	
Bard Financial   Services, Inc, Profit Sharing Plan

388 East Main Street

Branford, CT 06405
    	
 
    	
Kenneth Spitzbard

388 East Main Street

Branford, CT 06405
    

 

 

	
Steven Shwartz

5 Emerald Lane

Woodbridge, CT 06525
    	
 
    	
Charles Gamble

69 Richard Sweet Drive

Woodbridge, CT 06525
    
	
 
    	
 
    	
 
    
	
Jay   Steinberg & Melanie Steinberg

(as Joint Tenants with   rights of survivorship)

275 Laurel Lane

Laurel Hollow, NY 11791
    	
 
    	
Andrew Esposito

319 Bartlett Drive

Madison, CT 06443

 
    
	
 
    	
 
    	
 
    
	
Victor Nesi

1545 Fairfield Beach   Road

Fairfield, CT 06824
    	
 
    	
Paul Schmidt

230 Catherine Drive

Rocky Hill, CT 06067
    
	
 
    	
 
    	
 
    
	
Gary R. Martino

70 Penny Lane

Woodbridge, CT 06525
    	
 
    	
Scott Douglas Porter
   36 Silent Grove North
   Westport, CT 06880
    
	
 
    	
 
    	
 
    
	
Rae Ko Fairfield

251 Fern Ridge

Ladenberg, PA 19350
    	
 
    	
David Eldredge

45 Indian Trail

Woodbridge, CT 06525
    
	
 
    	
 
    	
 
    
	
Jon M. Gassett

635 South Road

Lisle, Illinois 60532
    	
 
    	
Aaron Konecky

706 Old Indian Mill Rd.

Tabernacle, NJ 08088
    
	
 
    	
 
    	
 
    
	
Axiom Venture Partners   III LP

CityPlace II — 17th Floor
   185 Asylum Street
   Hartford, CT 06103
    	
 
    	
David Berten

1638 N. Wolcott Avenue

Chicago, IL 60622
    
	
 
    	
 
    	
 
    
	
Charles H. Cash

3457 Amherst

Dallas, Texas 75225
    	
 
    	
Harvey B. Cash

13455 Noel Road,   Suite 1670

Dallas, Texas 75240
    
	
 
    	
 
    	
 
    
	
HO2.1 Fund, L.P.

HO2.1 Affiliates Fund,   L.P.

HO2.1 Annex Fund, L.P.

Two Galleria Tower

13455 Noel Road,   Suite 1670

Dallas, Texas 75240
    	
 
    	
CVF, LLC

c/o Henry   Crown & Company

222 N. LaSalle Street

Chicago, IL 60601

 
    

 

 

	
G&H Partners, L.P.

155 Constitution Drive

Menlo Park, California   94025
    	
 
    	
Dennis Gorman

3450 Ranchero Road

Plano, Texas 75093
    
	
 
    	
 
    	
 
    
	
VentureLink Partners,   LP

13455 Noel Road,   Suite 1710

Dallas, Texas 75240
    	
 
    	
Jacques Management, LLC

14601 Waterview Circle

Addison, Texas 75001
    
	
 
    	
 
    	
 
    
	
Investor Group, L.P.

Canada Court, Upland   Road

St. Peter Port,   Guernsey GY1 3BQ

Channel Islands

 

copy to:

 

Noah Walley

630 Fifth Avenue

New York, NY 10111
    	
 
    	
Investor Growth Capital   Limited

Canada Court, Upland   Road

St. Peter Port,   Guernsey GYI 3BQ

Channel Islands

 

copy to:

 

Noah Walley

630 Fifth Avenue

New York, NY 10111
    
	
 
    	
 
    	
 
    
	
Kaufman Family LLC

c/o Henry   Kaufman & Co.

590 Madison Avenue, 5th Floor

New York, New York   10021
    	
 
    	
Cynthia and Timothy   Reidy

4011 Los Aribas Drive

Lafayette, California   94549-2710
    
	
 
    	
 
    	
 
    
	
Paul F. Reidy

16005 Double Eagle Road

Austin, Texas 78717
    	
 
    	
John P. Reidy

1190 Winwood

Lake Forrest, Illinois   60045
    
	
 
    	
 
    	
 
    
	
Elizabeth T. Reidy

2110 Point Bluff Drive

Austin, Texas 78746

 

James F. Rhodes

81 Pascal Lane

Austin, Texas 78746
    	
 
    	
Sevin Rosen Fund VI L.P.

Sevin Rosen VI   Affiliates Fund L.P.

Sevin Rosen Bayless   Management Company

Sevin Rosen Fund VIII,   L.P.

Sevin Rosen VIII   Affiliates Fund, L.P.

c/o The Sevin Rosen   Funds
   13455 Noel Road, Suite 1670
   Dallas, Texas 75240
    
	
 
    	
 
    	
 
    
	
James A. Star

c/o Henry   Crown & Company

222 N. LaSalle Street

Chicago, Illinois 60601
    	
 
    	
Tarrant Venture Partners, L.P.

301 Commerce Street,   Suite 3300

Fort Worth, Texas 76102
    

 

 

	
Teachers Insurance and   Annuity Association of
   America

730 Third Ave.

New York, NY 10017
    	
 
    	
Venture Lending &   Leasing IV, LLC

2010 North First   Street, Suite 310

San Jose, California   95131

 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Vertex Partners, L.P.

c/o Henry   Kaufman & Co.

590 Madison Avenue, 5th Floor

New York, New York   10021
    
	
 
    	
 
    	
 
    
	
Internoded, Inc.

1440 Main Street

Waltham, MA 02451

Attention: Julie Palen
    	
 
    	
International Business   Machines Corporation

One New Orchard Road

Armonk, NY 10504
    

 

 

Exhibit A-1

 

Purchasers Who Have Granted A Voting Proxy

To

SEVIN ROSEN FUND VI L.P.

 

	
Barnett L. Gershen

4747 Bellaire, Suite 240

Bellaire, TX 44701

 

Brian   R. Smith

9908   Pickfair Drive

Austin,   TX 78750

 

Bruce   E. Pendleton Revocable Trust Bruce E.

Pendleton,   Trustee

Attn:   Bruce E. Pendleton

6444   Indian Lane

Shawnee   Mission, KS 66208
    	
 
    	
Nuevo   Capital Partners, L.P.

Attn:   Willard Hanzlik

2600   PM 620 North

Austin,   TX 78734

RAM   Funds Ltd.

Attn:   Brooks H. McGee

10375   Richmond Ave., Suite 1700

Houston,   TX 77042

Richard   R. Arnoldy

418   Yorkshire Pl.

Webster   Groves, MO 63119
    
	
 
    	
 
    	
 
    
	
Cedar   Equities, LLC

Attn:   Joe Moore

820   Gessner, Suite 1000

Houston,   TX 77024
    	
 
    	
Robert   A. Shaheen

17040   Grand Bay Dr.

Boca   Raton, FL 33496
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Robert   E. Kresko Revocable Trust DTD
    
	
Covenant   Foundation, Inc.

Attn:   Thomas W. Lyles, Jr.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    	
 
    	
12.22.94

Attn:   Robert E. Kresko

8235   Forsyth, Suite 1000

St.   Louis, MO 63105
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Spaulding   Investment Limited Partnership
    
	
Daniel   H. Bathon, Jr.

52   Waltham St.

Lexington,   MA 02421
    	
 
    	
Attn:   Charles Spaulding III

5831   Oakwood Road

Mission   Hills, KS 66208
    
	
 
    	
 
    	
 
    
	
David   Ford

162   Pine Ridge Road

Waban,   MA 02468
    	
 
    	
ST   Investments Limited Partnership

Attn:   Steven O. Spaulding

35   Battery Park Drive

Bridgeport,   CT 06605
    

 

 

	
 
    	
 
    	
Stephen   J. Shaper
    
	
David   L. Hatton

12933   Brittmoore Park

Houston,   TX 77041
    	
 
    	
Middlemarch   Capital Corporation

1800   W. Loop S., Suite 1440

Houston,   TX 77027
    
	
 
    	
 
    	
 
    
	
David   M. Weekley

1111   North Post Oak Rd.

Houston,   TX 77055
    	
 
    	
David   Weekley Family Foundation

Attn:   David M. Weekley

1111   North Post Oak Rd.

Houston,   TX 77055
    
	
 
    	
 
    	
 
    
	
The   John Mansour Family Limited Partnership
    	
 
    	
 
    
	
Attn:   Johnny Mansour

111   Congress Avenue, Suite 3000

Austin,   TX 78701
    	
 
    	
Thomas   Bailey

1776   Park Ave., Suite 4 PMB 371

Park   City, UT 84060
    
	
 
    	
 
    	
 
    
	
Mission   City Management Inc.

Attn:   Thomas W. Lyles, Jr.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    	
 
    	
Thomas   W. Lyles Jr.

Mission   City Management, Inc.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    
	
 
    	
 
    	
 
    
	
Gary   W. and Lydia G. Junek

845   Sprucewood, Ste 200

Houston,   TX 77024
    	
 
    	
William   R. Camp

8830   Stable Crest Blvd.

Houston,   TX 77024
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Z   Start I, L.P.
    
	
Geoffrey   B. Hoese

2605   Stratford Drive

Austin,   TX 78746
    	
 
    	
Attn:   Paul Zito

111 Congress Avenue, Suite 3000

Austin, TX 78701
    
	
 
    	
 
    	
 
    
	
 

Henry   James

P.O. Box   1387

Edmonds,   WA 98020
    	
 
    	
Hines   Investment Holdings Limited Partnership

Attn:   Jeffrey C. Hines

2800   Post Oak Blvd., Suite 5000

Houston,   TX 77056
    
	
 
    	
 
    	
 
    
	
Geejohn   LLC

Attn:   Pam Johnson

54-B   Bayou Pointe Dr.

Houston,   TX 77063
    	
 
    	
JDC   Management, Inc.

Attn:   John D. Chaney

1800   W. Loop S., Suite 1400

Houston,   TX 77027
    
	
 
    	
 
    	
 
    
	
Middlemarch   Capital Partners

Attn:   Steve Shaper

1800   W. Loop S., Suite 1440

Houston,   TX 77027
    	
 
    	
JMM PHLP, Ltd.

Attn: James Mansour

111 Congress Avenue, Suite 3000

Austin,   TX 78701
    

 

 

	
JAMA   1 Ltd.
    	
 
    	
 
    
	
Attn:   J. A. Dieck

P.O. Box   13045

Austin,   TX 78711
    	
 
    	
James   P. Wilson

33   Beacon Hill

Sugar   Land, TX 77479
    
	
 
    	
 
    	
 
    
	
Stephen   Yurco
    	
 
    	
 
    
	
c/o   YDB Ventures I

1400   Wathen Avenue

Austin,   TX 78703
    	
 
    	
Kenneth   Rivera

4301   South Lafayette Street

Cherry   Hills Village, CO 80113
    
	
 
    	
 
    	
 
    
	
BF   Private Capital, LP
    	
 
    	
 
    
	
Attn:   Paul J. Bury, III

22   W. 6th Street, Suite 600

Austin,   TX 78701
    	
 
    	
Willie Langston

717 Texas Avenue, Suite 3000

Houston,   TX 77002
    

 

 

FOURTH AMENDMENT TO EIGHTH

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

THIS FOURTH AMENDMENT TO EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Amendment”) made this 21st day of January, 2011 by and among TANGOE, INC., a Delaware corporation (the “Corporation”) and THE INDIVIDUALS AND ENTITIES LISTED ON EXHIBIT A ATTACHED HERETO (the “Purchasers”).

 

WHEREAS, the Corporation and the Purchasers are parties to that certain Eighth Amended and Restated Investor Rights Agreement dated as of July 28, 2008, as amended by that certain First Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of March 12, 2009, that certain Second Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of October 15, 2009 and as most recently amended by that certain Third Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of April 16, 2010 (as amended, the “Investor Rights Agreement”);

 

WHEREAS, the Investor Rights Agreement may be amended with the written consent of the Company and the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding Shares representing at least 67% of the voting power of all Shares held by Purchasers;

 

WHEREAS, the undersigned Purchasers represent at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC;

 

NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained in this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.             Certain Defined Terms.  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Investor Rights Agreement.

 

2.             Amendments to Agreement.  The definition of “Warrants” set forth in Section 1 of the Investor Rights Agreement is hereby amended by adding the following clause to the end of that definition:

 

“and (x) that certain warrant to purchase Series F Preferred Stock issued to ORIX Finance Equity Investors, LP in January 2011, in connection with the Seventh Amendment to Loan and Security Agreement between the Company and ORIX Venture Finance LLC.”

 

3.             Miscellaneous Provisions.

 

(a)       General.  Except as amended hereby, the Investor Rights Agreement shall continue in full force and effect.

 

 

(b)       Severability of Provisions.  If any one or more provisions of this Amendment shall be declared invalid or unenforceable, the same shall not affect the validity or enforceability of any other provisions of this Amendment.

 

(c)       Governing Law.  This Amendment shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware.

 

(d)       Entire Agreement.  All prior understandings and agreements between the parties hereto with respect to the transactions contemplated hereby are merged in this Amendment, and this Amendment and the Investor Rights Agreement, as amended hereby, reflect all the understandings with respect to such transactions.

 

(e)       Counterparts.  This Amendment may be executed in counterparts and delivered via facsimile or other electronic means, each of which when so executed and delivered shall constitute a complete and original instrument but all of which together shall constitute one and the same agreement, and it shall not be necessary when making proof of this Amendment or any counterpart thereof to account for any other counterpart.

 

(f)        Effectiveness.  This Amendment shall be effective upon the receipt by the Corporation of an executed signature page from holders of at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC.

 

 

[Remainder of Page Blank.  Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be duly executed the day and year first above written.

 

	
 
    	
TANGOE, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Name:   Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PURCHASERS:
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV SBIC, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
NORTH   ATLANTIC VENTURE FUND III, A LIMITED PARTNERSHIP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors III, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
NORTH   ATLANTIC SBIC IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors SBIC IV, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROWTH CAPITAL LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Liam Jones
    
	
 
    	
Name:
    	
Liam   Jones
    
	
 
    	
Title:
    	
‘A’   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROUP, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By   IGVC L.P., its General Partner
    
	
 
    	
 
    
	
 
    	
By   Investor Group GmbH, its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dr. A. Hünerwadel 
    
	
 
    	
Name:
    	
Dr. A.   Hünerwadel
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

 Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:   John V. Jaggers
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VI AFFILIATES FUND L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:   John V. Jaggers
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN BAYLESS MANAGEMENT COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:   John V. Jaggers
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN FUND VIII, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:   John V. Jaggers
    
	
 
    	
 
    	
Title:   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VIII AFFILIATES FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:   John V. Jaggers
    
	
 
    	
 
    	
Title:   General Partner
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
AXIOM   VENTURE PARTNERS III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ASSOCIATES, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ADVISORS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Alan   Mendelson
    
	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Kenneth   Spitzbard
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Steven   Shwartz
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Gregory   Burkus
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Christopher   T. Fraser
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Scott   Douglas Porter
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BARD   FINANCIAL SERVICES, INC.,
    
	
 
    	
PROFIT   SHARING PLAN
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kenneth   Spitzbard
    
	
 
    	
Title
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David Toole
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    
	
 
    	
Joseph   M. Goldberg
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Leonard   J. Goldberg
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jay   Steinberg & Melanie Steinberg
    
	
 
    	
(as   Joint Tenants with rights of survivorship)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Victor   Nesi
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Albert   R. Subbloie, Jr.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Stephano   Kim
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Gary   R. Martino
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Charles   Gamble
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Andrew   Esposito
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Paul   Schmidt
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Rae   Ko Fairfield
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    
	
 
    	
Jon   M. Gassett
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David   Eldredge
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aaron   Konecky
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Christopher   DeBenedictis
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David   Berten
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Charles   H. Cash
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Harvey   B. Cash
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CVF,   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
G&H   PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    	
 
    
	
 
    	
Dennis   Gorman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HO2.1   FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HO2.1   AFFILIATES FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   ANNEX FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JACQUES   MANAGEMENT, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kevin   Jacques
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAUFMAN   FAMILY LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Cynthia   Reidy
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Timothy   Reidy
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    
	
 
    	
Paul   F. Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Elizabeth   T. Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
John   P. Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
James   F. Rhodes
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
James   A. Star
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TARRANT   VENTURES PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TEACHERS   INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VENTURE   LENDING & LEASING IV, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
VENTURELINK   PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VERTEX   PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INTERNATIONAL   BUSINESS MACHINES CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INTERNODED, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Julie   L. Palen, President
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P., as Proxy for the Purchasers Indicated on Exhibit A
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John V. Jaggers
    
	
 
    	
 
    	
Name:   John V. Jaggers
    
	
 
    	
 
    	
Title:   General Partner
    

 

[Signature Page to Fourth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

Exhibit A

 

List of Purchasers

 

	
Name   and Address
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
North   Atlantic Venture Fund III, L.P.

Two   City Center

Portland,   ME 04101

Attention:   David Coit

 

North   Atlantic SBIC IV, L.P.

Two   City Center

Portland,   ME 04101

Attention:   David Coit

 

with   a copy to:

 

Nixon   Peabody LLP

100   Summer Street

Boston,   MA  02110

Attention:   David Martland, Esq.

 

Edison   Venture Fund IV SBIC, L.P.

8270   Greensboro Drive

Suite 850

McLean,   VA  22102

 

Edison   Venture Fund IV, L.P.

8270   Greensboro Drive

Suite 850

McLean,   VA  22102

 

with   a copy to:

 

Wilmer   Cutler Pickering Hale and Dorr LLP

1600   Tysons Blvd., Suite 1000

McLean,   Virginia 22102

Attention:   Gregory J. Ewald, Esq.

 

Bard   Financial Services, Inc, Profit Sharing Plan

388   East Main Street

Branford,   CT  06405

 

Steven   Shwartz

5   Emerald Lane

Woodbridge,   CT  06525
    	
 
    	
Albert   R. Subbloie, Jr.

10   Laurel Avenue

Milford,   CT  06460

 

Joseph   M. Goldberg

130   Renee’s Way

Guilford,   CT 06437

 

Gregory   Burkus

262   Country Drive

Weston,   MA  02493

 

David   Toole

23   Roaring Brook Lane

Shelton,   CT  06484 

 

 

Leonard   J. Goldberg

173   Old Salt Works Road

Westbrook,   CT  06498

 

Christopher   T. Fraser

9448   Bella Terra Drive

Fort   Worth, Texas  76126

 

Stephano   Kim
   11 Summerhouse Hill

Holmdel,   NJ  07733

 

Christopher   DeBenedictis

6   Autumn Ridge Road
   Branford, CT  06405

 

Kenneth   Spitzbard

388   East Main Street

Branford,   CT  06405

 

Charles   Gamble

69   Richard Sweet Drive

Woodbridge,   CT  06525
    

 

 

	
Jay   Steinberg & Melanie Steinberg

(as   Joint Tenants with rights of survivorship)

275   Laurel Lane

Laurel   Hollow, NY  11791
    	
 
    	
Andrew   Esposito

319   Bartlett Drive

Madison,   CT  06443

 
    
	
 
    	
 
    	
 
    
	
Victor   Nesi

1545   Fairfield Beach Road

Fairfield,   CT  06824
    	
 
    	
Paul   Schmidt

230   Catherine Drive

Rocky   Hill, CT  06067
    
	
 
    	
 
    	
 
    
	
Gary   R. Martino

70   Penny Lane

Woodbridge,   CT  06525
    	
 
    	
Scott   Douglas Porter
   36 Silent Grove North
   Westport, CT  06880
    
	
 
    	
 
    	
 
    
	
Rae   Ko Fairfield

251   Fern Ridge

Ladenberg,   PA  19350
    	
 
    	
David   Eldredge

45   Indian Trail

Woodbridge,   CT  06525
    
	
 
    	
 
    	
 
    
	
Jon   M. Gassett

635   South Road

Lisle, Illinois  60532
    	
 
    	
Aaron   Konecky

706   Old Indian Mill Rd.

Tabernacle,   NJ  08088
    
	
 
    	
 
    	
 
    
	
Axiom   Venture Partners III LP

CityPlace   II — 17th Floor
   185 Asylum Street
   Hartford, CT 06103
    	
 
    	
David   Berten

1638   N. Wolcott Avenue

Chicago, IL   60622
    
	
 
    	
 
    	
 
    
	
Charles H. Cash

3457   Amherst

Dallas,   Texas  75225
    	
 
    	
Harvey   B. Cash

13455 Noel Road, Suite 1670

Dallas,   Texas  75240
    
	
 
    	
 
    	
 
    
	
HO2.1 Fund, L.P.

HO2.1   Affiliates Fund, L.P.

HO2.1   Annex Fund, L.P.

Two Galleria Tower

13455 Noel Road, Suite 1670

Dallas,   Texas  75240
    	
 
    	
CVF, LLC

c/o   Henry Crown & Company

222   N. LaSalle Street

Chicago, IL   60601

 
    
	
 
    	
 
    	
 
    
	
G&H   Partners, L.P.

155 Constitution Drive

Menlo   Park, California  94025
    	
 
    	
Dennis Gorman

3450   Ranchero Road

Plano,   Texas  75093
    
	
 
    	
 
    	
 
    
	
VentureLink Partners, LP

13455 Noel Road, Suite 1710

Dallas,   Texas 75240
    	
 
    	
Jacques   Management, LLC

14601 Waterview Circle

Addison,   Texas  75001
    

 

2

 

	
Investor Group, L.P.

Canada   Court, Upland Road

St.   Peter Port, Guernsey GY1 3BQ

Channel   Islands

 

copy   to:

 

Noah   Walley

630   Fifth Avenue

New   York, NY 10111
    	
 
    	
Investor   Growth Capital Limited

Canada   Court, Upland Road

St.   Peter Port, Guernsey GYI 3BQ

Channel   Islands

 

copy   to:

 

Noah   Walley

630   Fifth Avenue

New   York, NY 10111
    
	
 
    	
 
    	
 
    
	
Kaufman Family LLC

c/o   Henry Kaufman & Co.

590   Madison Avenue, 5th Floor

New   York, New York  10021
    	
 
    	
Cynthia   and Timothy Reidy

4011   Los Aribas Drive

Lafayette,   California 94549-2710
    
	
 
    	
 
    	
 
    
	
Paul   F. Reidy

16005   Double Eagle Road

Austin,   Texas  78717
    	
 
    	
John   P. Reidy

1190   Winwood

Lake   Forrest, Illinois  60045
    
	
 
    	
 
    	
 
    
	
Elizabeth   T. Reidy

2110   Point Bluff Drive

Austin,   Texas  78746

 

James   F. Rhodes

81   Pascal Lane

Austin,   Texas 78746

 
    	
 
    	
Sevin   Rosen Fund VI L.P.

Sevin   Rosen VI Affiliates Fund L.P.

Sevin   Rosen Bayless Management Company

Sevin   Rosen Fund VIII, L.P.

Sevin   Rosen VIII Affiliates Fund, L.P.

c/o   The Sevin Rosen Funds
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    
	
 
    	
 
    	
 
    
	
James   A. Star

c/o   Henry Crown & Company

222   N. LaSalle Street

Chicago, Illinois   60601
    	
 
    	
Tarrant Venture Partners, L.P.

301   Commerce Street, Suite 3300

Fort   Worth, Texas  76102
    
	
 
    	
 
    	
 
    
	
Teachers Insurance and Annuity Association of America

730   Third Ave.

New   York, NY 10017
    	
 
    	
Venture Lending & Leasing IV, LLC

2010 North First Street, Suite 310

San   Jose, California 95131
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Vertex Partners, L.P.

c/o   Henry Kaufman & Co.

590   Madison Avenue, 5th Floor

New   York, New York  10021
    

 

3

 

	
Internoded, Inc.

1440   Main Street

Waltham,   MA 02451

Attention:   Julie Palen
    	
 
    	
International Business Machines Corporation

One New Orchard Road

Armonk, NY 10504
    

 

4

 

Exhibit A-1

 

Purchasers Who Have Granted A Voting Proxy

To

SEVIN ROSEN FUND VI L.P.

 

	
Barnett   L. Gershen

4747   Bellaire, Suite 240

Bellaire,   TX  44701
    	
 
    	
Nuevo   Capital Partners, L.P.

Attn:  Willard Hanzlik

2600   PM 620 North

Austin,   TX 78734
    
	
Brian   R. Smith

9908   Pickfair Drive

Austin,   TX 78750
    	
 
    	
RAM   Funds Ltd.

Attn:  Brooks H. McGee

10375   Richmond Ave., Suite 1700

Houston,   TX 77042
    
	
Bruce   E. Pendleton Revocable Trust Bruce E.
   Pendleton, Trustee

Attn:  Bruce E. Pendleton

6444   Indian Lane

Shawnee   Mission, KS 66208
    	
 
    	
Richard   R. Arnoldy

418   Yorkshire Pl.

Webster   Groves, MO 63119
    
	
 
    	
 
    	
 
    
	
Cedar   Equities, LLC

Attn:  Joe Moore

820   Gessner, Suite 1000

Houston,   TX 77024
    	
 
    	
Robert   A. Shaheen

17040   Grand Bay Dr.

Boca   Raton, FL 33496
    
	
 
    	
 
    	
 
    
	
Covenant   Foundation, Inc.

Attn:  Thomas W. Lyles, Jr.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    	
 
    	
Robert   E. Kresko Revocable Trust DTD 12.22.94

Attn:  Robert E. Kresko

8235   Forsyth, Suite 1000

St.   Louis, MO 63105
    
	
 
    	
 
    	
 
    
	
Daniel   H. Bathon, Jr.

52   Waltham St.

Lexington,   MA 02421

 
    	
 
    	
Spaulding   Investment Limited Partnership

Attn:  Charles Spaulding III

5831   Oakwood Road

Mission   Hills, KS 66208

 
    
	
David   Ford

162   Pine Ridge Road

Waban,   MA 02468
    	
 
    	
ST   Investments Limited Partnership

Attn:  Steven O. Spaulding

35   Battery Park Drive

Bridgeport,   CT 06605
    

 

5

 

	
David   L. Hatton

12933   Brittmoore Park

Houston,   TX 77041
    	
 
    	
Stephen   J. Shaper

Middlemarch   Capital Corporation

1800   W. Loop S., Suite 1440

Houston,   TX 77027
    
	
 
    	
 
    	
 
    
	
David   M. Weekley

1111   North Post Oak Rd.

Houston,   TX 77055
    	
 
    	
David   Weekley Family Foundation

Attn:  David M. Weekley

1111   North Post Oak Rd.

Houston,   TX 77055
    
	
The   John Mansour Family Limited Partnership

Attn:  Johnny Mansour

111   Congress Avenue, Suite 3000

Austin,   TX 78701
    	
 
    	
Thomas   Bailey

1776   Park Ave., Suite 4 PMB 371

Park   City, UT 84060
    
	
 
    	
 
    	
 
    
	
Mission   City Management Inc.

Attn:  Thomas W. Lyles, Jr.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    	
 
    	
Thomas   W. Lyles Jr.

Mission   City Management, Inc.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    
	
 
    	
 
    	
 
    
	
Gary   W. and Lydia G. Junek

845   Sprucewood, Ste 200

Houston,   TX 77024
    	
 
    	
William   R. Camp

8830   Stable Crest Blvd.

Houston,   TX 77024
    
	
 
    	
 
    	
 
    
	
Geoffrey   B. Hoese

2605   Stratford Drive

Austin,   TX 78746
    	
 
    	
Z   Start I, L.P.

Attn:  Paul Zito

111   Congress Avenue, Suite 3000

Austin,   TX 78701
    
	
 
    	
 
    	
 
    
	
Henry   James

P.O. Box   1387

Edmonds,   WA 98020
    	
 
    	
Hines   Investment Holdings Limited Partnership

Attn:  Jeffrey C. Hines

2800   Post Oak Blvd., Suite 5000

Houston,   TX 77056
    
	
 
    	
 
    	
 
    
	
Geejohn   LLC

Attn:  Pam Johnson

54-B   Bayou Pointe Dr.

Houston,   TX 77063
    	
 
    	
JDC   Management, Inc.

Attn:  John D. Chaney

1800   W. Loop S., Suite 1400

Houston,   TX 77027
    
	
 
    	
 
    	
 
    
	
Middlemarch   Capital Partners

Attn:  Steve Shaper

1800   W. Loop S., Suite 1440

Houston,   TX 77027
    	
 
    	
JMM   PHLP, Ltd.

Attn:  James Mansour

111   Congress Avenue, Suite 3000

Austin,   TX 78701
    

 

6

 

	
JAMA   1 Ltd.

Attn:  J. A. Dieck

P.O. Box   13045

Austin,   TX  78711
    	
 
    	
James   P. Wilson

33   Beacon Hill

Sugar   Land, TX 77479
    
	
 
    	
 
    	
 
    
	
Stephen   Yurco

c/o   YDB Ventures I

1400   Wathen Avenue

Austin,   TX 78703
    	
 
    	
Kenneth   Rivera

4301   South Lafayette Street

Cherry   Hills Village, CO 80113
    
	
 
    	
 
    	
 
    
	
BF   Private Capital, LP

Attn:  Paul J. Bury, III

22   W. 6th Street, Suite 600

Austin,   TX  78701
    	
 
    	
Willie   Langston

717   Texas Avenue, Suite 3000

Houston,   TX  77002
    

 

7

 

FIFTH AMENDMENT TO EIGHTH

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

THIS FIFTH AMENDMENT TO EIGHTH AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Amendment”) made this 28th day of January, 2011 by and among TANGOE, INC., a Delaware corporation (the “Corporation”) and THE INDIVIDUALS AND ENTITIES LISTED ON EXHIBIT A ATTACHED HERETO (the “Purchasers”).

 

WHEREAS, the Corporation and the Purchasers are parties to that certain Eighth Amended and Restated Investor Rights Agreement dated as of July 28, 2008, as amended by that certain First Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of March 12, 2009, that certain Second Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of October 15, 2009, that certain Third Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of April 16, 2010, and as most recently amended by that certain Fourth Amendment to Eighth Amended and Restated Investor Rights Agreement dated as of January 21st 2010 (as amended, the “Investor Rights Agreement”);

 

WHEREAS, the Investor Rights Agreement may be amended with the written consent of the Company and the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC, holding Shares representing at least 67% of the voting power of all Shares held by Purchasers;

 

WHEREAS, the undersigned Purchasers represent at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC;

 

NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained in this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.             Certain Defined Terms.  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Investor Rights Agreement.

 

2.             Amendments to Agreement.  Effective upon the execution of this Amendment, Sections 3.1(h)(IV) and 4.2(b)(IV) of the Investor Rights Agreement are hereby each amended by increasing the number of shares of Common Stock referenced in each such section from 23,428,102 to 30,428,102.

 

3.             Miscellaneous Provisions.

 

(a)       General.  Except as amended hereby, the Investor Rights Agreement shall continue in full force and effect.

 

 

(b)       Severability of Provisions.  If any one or more provisions of this Amendment shall be declared invalid or unenforceable, the same shall not affect the validity or enforceability of any other provisions of this Amendment.

 

(c)       Governing Law.  This Amendment shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware.

 

(d)       Entire Agreement.  All prior understandings and agreements between the parties hereto with respect to the transactions contemplated hereby are merged in this Amendment, and this Amendment and the Investor Rights Agreement, as amended hereby, reflect all the understandings with respect to such transactions.

 

(e)       Counterparts.  This Amendment may be executed in counterparts and delivered via facsimile or other electronic means, each of which when so executed and delivered shall constitute a complete and original instrument but all of which together shall constitute one and the same agreement, and it shall not be necessary when making proof of this Amendment or any counterpart thereof to account for any other counterpart.

 

(f)        Effectiveness.  This Amendment shall be effective upon the receipt by the Corporation of an executed signature page from holders of at least 67% of the voting power of all Shares held by the Purchasers, including Edison, North Atlantic, Sevin Rosen and IGC.

 

 

[Remainder of Page Blank.  Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be duly executed the day and year first above written.

 

	
 
    	
TANGOE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Name:   Albert R. Subbloie, Jr.
    
	
 
    	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
PURCHASERS:
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   VENTURE FUND IV SBIC, L.P.
    
	
 
    	
 
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
EDISON   PARTNERS IV
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary P. Golding
    
	
 
    	
Name:
    	
Gary   P. Golding
    
	
 
    	
Title:
    	
General   Partner
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
NORTH   ATLANTIC VENTURE FUND III, A LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors III, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
NORTH   ATLANTIC SBIC IV, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
North   Atlantic Investors SBIC IV, L.L.C.,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Coit
    
	
 
    	
Name:
    	
David   M. Coit
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROWTH CAPITAL LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Liam Jones
    
	
 
    	
Name:
    	
Liam   Jones
    
	
 
    	
Title:
    	
‘A’   Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
B-Director
    
	
 
    	
 
    	
 
    
	
 
    	
INVESTOR   GROUP, L.P.
    
	
 
    	
 
    
	
 
    	
By   IGVC L.P., its General Partner
    
	
 
    	
 
    
	
 
    	
By   Investor Group GmbH, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dr. A. Hünerwadel
    
	
 
    	
Name:
    	
Dr. A.   Hünerwadel
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert de Heus
    
	
 
    	
Name:
    	
Robert   de Heus
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Charles H. Phipps
    
	
 
    	
 
    	
Name:   Charles H. Phipps
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VI AFFILIATES FUND L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Charles H. Phipps
    
	
 
    	
 
    	
Name:   Charles H. Phipps
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN BAYLESS MANAGEMENT COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Charles H. Phipps
    
	
 
    	
 
    	
Name:   Charles H. Phipps
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN FUND VIII, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Charles H. Phipps
    
	
 
    	
 
    	
Name:   Charles H. Phipps
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SEVIN   ROSEN VIII AFFILIATES FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VIII L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Charles H. Phipps
    
	
 
    	
 
    	
Name:   Charles H. Phipps
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
AXIOM   VENTURE PARTNERS III, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ASSOCIATES, L.P.
    
	
 
    	
By   its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
AXIOM   VENTURE ADVISORS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Alan   Mendelson
    
	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Kenneth   Spitzbard
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Steven   Shwartz
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Gregory   Burkus
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Christopher   T. Fraser
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Scott   Douglas Porter
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BARD   FINANCIAL SERVICES, INC.,
    
	
 
    	
PROFIT   SHARING PLAN
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kenneth   Spitzbard
    
	
 
    	
Title
    	
Trustee
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    
	
 
    	
David Toole
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Joseph   M. Goldberg
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Leonard   J. Goldberg
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jay   Steinberg & Melanie Steinberg
    
	
 
    	
(as   Joint Tenants with rights of survivorship)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Victor   Nesi
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Albert R. Subbloie, Jr.
    
	
 
    	
Albert   R. Subbloie, Jr.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Stephano   Kim
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Gary R. Martino
    
	
 
    	
Gary   R. Martino
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Charles   Gamble
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Andrew   Esposito
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Paul   Schmidt
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
 
    
	
 
    	
Rae   Ko Fairfield
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jon   M. Gassett
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David   Eldredge
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Aaron   Konecky
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Christopher   DeBenedictis
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
David   Berten
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Charles   H. Cash
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Harvey   B. Cash
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CVF,   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
G&H   PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Dennis   Gorman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:   
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   AFFILIATES FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:   
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
HO2.1   ANNEX FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel T. Owen
    
	
 
    	
Name:
    	
Daniel   T. Owen
    
	
 
    	
Title:   
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JACQUES   MANAGEMENT, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Kevin   Jacques
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
KAUFMAN   FAMILY LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Cynthia   Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Timothy   Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Paul   F. Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Elizabeth   T. Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
John   P. Reidy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
James   F. Rhodes
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
James   A. Star
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TARRANT   VENTURES PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
TEACHERS   INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VENTURE   LENDING & LEASING IV, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VENTURELINK   PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VERTEX   PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTERNATIONAL   BUSINESS MACHINES CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTERNODED, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Julie   L. Palen, President
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

	
 
    	
SEVIN   ROSEN FUND VI L.P., as Proxy for the Purchasers Indicated on Exhibit A
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SRB   Associates VI L.P.
    
	
 
    	
 
    	
Its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Charles H. Phipps
    
	
 
    	
 
    	
Name:   Charles H. Phipps
    
	
 
    	
 
    	
Title:   General Partner
    

 

[Signature Page to Fifth Amendment to Eighth Amended and Restated

Investor Rights Agreement]

 

 

Exhibit A

 

List of Purchasers

Name and Address

 

	
North   Atlantic Venture Fund III, L.P.

Two   City Center

Portland,   ME 04101

Attention:   David Coit

 

North   Atlantic SBIC IV, L.P.

Two   City Center

Portland,   ME 04101

Attention:   David Coit

 

with   a copy to:

 

Nixon   Peabody LLP

100   Summer Street

Boston,   MA  02110

 

Attention:   David Martland, Esq.
    	
 
    	
Albert   R. Subbloie, Jr.

10   Laurel Avenue

Milford,   CT  06460

 

Joseph   M. Goldberg

130   Renee’s Way

Guilford,   CT 06437

 

Gregory   Burkus

262   Country Drive

Weston,   MA  02493

 

David   Toole

23   Roaring Brook Lane

Shelton,   CT  06484 
    
	
 
    	
 
    	
 
    
	
Edison   Venture Fund IV SBIC, L.P.

8270   Greensboro Drive

Suite 850

McLean,   VA  22102

 

Edison   Venture Fund IV, L.P.

8270   Greensboro Drive

Suite 850

McLean,   VA  22102

 

with   a copy to:

 

Wilmer   Cutler Pickering Hale and Dorr LLP

1600   Tysons Blvd., Suite 1000

McLean,   Virginia 22102

Attention:   Gregory J. Ewald, Esq.
    	
 
    	
 

Leonard   J. Goldberg

173   Old Salt Works Road

Westbrook,   CT  06498

 

Christopher   T. Fraser

9448   Bella Terra Drive

Fort   Worth, Texas  76126

 

Stephano   Kim
   11 Summerhouse Hill

Holmdel,   NJ  07733

 

Christopher   DeBenedictis

6   Autumn Ridge Road
   Branford, CT  06405
    

 

 

	
Bard   Financial Services, Inc, Profit Sharing Plan

388   East Main Street

Branford,   CT  06405
    	
 
    	
Kenneth   Spitzbard

388   East Main Street

Branford,   CT  06405
    
	
 
    	
 
    	
 
    
	
Steven   Shwartz

5   Emerald Lane

Woodbridge,   CT  06525
    	
 
    	
Charles   Gamble

69   Richard Sweet Drive

Woodbridge,   CT  06525
    
	
 
    	
 
    	
 
    
	
Jay   Steinberg & Melanie Steinberg

(as   Joint Tenants with rights of survivorship)

275   Laurel Lane

Laurel   Hollow, NY  11791
    	
 
    	
Andrew   Esposito

319   Bartlett Drive

Madison,   CT  06443

 
    
	
 
    	
 
    	
 
    
	
Victor   Nesi

1545   Fairfield Beach Road

Fairfield,   CT  06824
    	
 
    	
Paul   Schmidt

230   Catherine Drive

Rocky   Hill, CT  06067
    
	
 
    	
 
    	
 
    
	
Gary   R. Martino

70   Penny Lane

Woodbridge,   CT  06525
    	
 
    	
Scott   Douglas Porter
   36 Silent Grove North
   Westport, CT  06880
    
	
 
    	
 
    	
 
    
	
Rae   Ko Fairfield

251   Fern Ridge

Ladenberg,   PA  19350
    	
 
    	
David   Eldredge

45   Indian Trail

Woodbridge,   CT  06525
    
	
 
    	
 
    	
 
    
	
Jon   M. Gassett

635   South Road

Lisle, Illinois  60532
    	
 
    	
Aaron   Konecky

706   Old Indian Mill Rd.

Tabernacle,   NJ  08088
    
	
 
    	
 
    	
 
    
	
Axiom   Venture Partners III LP

CityPlace   II — 17th Floor
   185 Asylum Street
   Hartford, CT 06103
    	
 
    	
David   Berten

1638   N. Wolcott Avenue

Chicago, IL   60622
    
	
 
    	
 
    	
 
    
	
Charles H. Cash

3457   Amherst

Dallas,   Texas  75225
    	
 
    	
Harvey   B. Cash

13455 Noel Road, Suite 1670

Dallas,   Texas  75240
    

 

12

 

	
HO2.1 Fund, L.P.

HO2.1   Affiliates Fund, L.P.

HO2.1   Annex Fund, L.P.

Two Galleria Tower

13455 Noel Road, Suite 1670

Dallas,   Texas  75240
    	
 
    	
CVF, LLC

c/o   Henry Crown & Company

222   N. LaSalle Street

Chicago, IL   60601

 
    
	
 
    	
 
    	
 
    
	
G&H   Partners, L.P.

155 Constitution Drive

Menlo   Park, California  94025
    	
 
    	
Dennis Gorman

3450   Ranchero Road

Plano,   Texas  75093
    
	
 
    	
 
    	
 
    
	
VentureLink Partners, LP

13455 Noel Road, Suite 1710

Dallas,   Texas 75240
    	
 
    	
Jacques   Management, LLC

14601 Waterview Circle

Addison,   Texas  75001
    
	
 
    	
 
    	
 
    
	
Investor Group, L.P.

Canada   Court, Upland Road

St.   Peter Port, Guernsey GY1 3BQ

Channel   Islands

 

copy   to:

 

Noah   Walley

630   Fifth Avenue

New   York, NY 10111
    	
 
    	
Investor   Growth Capital Limited

Canada   Court, Upland Road

St.   Peter Port, Guernsey GYI 3BQ

Channel   Islands

 

copy   to:

 

Noah   Walley

630   Fifth Avenue

New   York, NY 10111
    
	
 
    	
 
    	
 
    
	
Kaufman Family LLC

c/o   Henry Kaufman & Co.

590   Madison Avenue, 5th Floor

New   York, New York  10021
    	
 
    	
Cynthia   and Timothy Reidy

4011   Los Aribas Drive

Lafayette,   California 94549-2710
    
	
 
    	
 
    	
 
    
	
Paul   F. Reidy

16005   Double Eagle Road

Austin,   Texas  78717
    	
 
    	
John   P. Reidy

1190   Winwood

Lake   Forrest, Illinois  60045
    
	
 
    	
 
    	
 
    
	
Elizabeth   T. Reidy

2110   Point Bluff Drive

Austin,   Texas  78746

 

James   F. Rhodes

81   Pascal Lane

Austin,   Texas 78746

 
    	
 
    	
Sevin   Rosen Fund VI L.P.

Sevin   Rosen VI Affiliates Fund L.P.

Sevin   Rosen Bayless Management Company

Sevin   Rosen Fund VIII, L.P.

Sevin   Rosen VIII Affiliates Fund, L.P.

c/o   The Sevin Rosen Funds
   13455 Noel Road, Suite 1670
   Dallas, Texas  75240
    

 

13

 

	
James   A. Star

c/o   Henry Crown & Company

222   N. LaSalle Street

Chicago, Illinois   60601
    	
 
    	
Tarrant Venture Partners, L.P.

301   Commerce Street, Suite 3300

Fort   Worth, Texas  76102
    
	
 
    	
 
    	
 
    
	
Teachers Insurance and Annuity Association of America

730   Third Ave.

New   York, NY 10017
    	
 
    	
Venture Lending & Leasing IV, LLC

2010 North First Street, Suite 310

San   Jose, California 95131
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Vertex Partners, L.P.

c/o   Henry Kaufman & Co.

590   Madison Avenue, 5th Floor

New   York, New York  10021
    
	
 
    	
 
    	
 
    
	
Internoded, Inc.

1440   Main Street

Waltham,   MA 02451

Attention:   Julie Palen
    	
 
    	
International Business Machines Corporation

One New Orchard Road

Armonk, NY 10504
    

 

14

 

Exhibit A-1

 

Purchasers Who Have Granted A Voting Proxy

To

SEVIN ROSEN FUND VI L.P.

 

	
Barnett   L. Gershen

4747   Bellaire, Suite 240

Bellaire,   TX  44701
    	
 
    	
Nuevo   Capital Partners, L.P.

Attn:  Willard Hanzlik

2600   PM 620 North

Austin,   TX 78734
    
	
Brian   R. Smith

9908   Pickfair Drive

Austin,   TX 78750
    	
 
    	
RAM   Funds Ltd.

Attn:  Brooks H. McGee

10375   Richmond Ave., Suite 1700

Houston,   TX 77042
    
	
Bruce   E. Pendleton Revocable Trust Bruce E.
   Pendleton, Trustee

Attn:  Bruce E. Pendleton

6444   Indian Lane

Shawnee   Mission, KS 66208
    	
 
    	
Richard   R. Arnoldy

418   Yorkshire Pl.

Webster   Groves, MO 63119
    
	
 
    	
 
    	
 
    
	
Cedar   Equities, LLC

Attn:  Joe Moore

820   Gessner, Suite 1000

Houston,   TX 77024
    	
 
    	
Robert   A. Shaheen

17040   Grand Bay Dr.

Boca   Raton, FL 33496
    
	
 
    	
 
    	
 
    
	
Covenant   Foundation, Inc.

Attn:  Thomas W. Lyles, Jr.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    	
 
    	
Robert   E. Kresko Revocable Trust DTD 12.22.94

Attn:  Robert E. Kresko

8235   Forsyth, Suite 1000

St.   Louis, MO 63105
    
	
 
    	
 
    	
 
    
	
Daniel   H. Bathon, Jr.

52   Waltham St.

Lexington,   MA 02421
    	
 
    	
Spaulding   Investment Limited Partnership

Attn:  Charles Spaulding III

5831   Oakwood Road

Mission   Hills, KS 66208
    
	
 
    	
 
    	
 
    
	
David   Ford

162   Pine Ridge Road

Waban,   MA 02468
    	
 
    	
ST   Investments Limited Partnership

Attn:  Steven O. Spaulding

35   Battery Park Drive

Bridgeport,   CT 06605
    

 

15

 

	
David   L. Hatton

12933   Brittmoore Park

Houston,   TX 77041
    	
 
    	
Stephen   J. Shaper

Middlemarch   Capital Corporation

1800   W. Loop S., Suite 1440

Houston,   TX 77027
    
	
 
    	
 
    	
 
    
	
David   M. Weekley

1111   North Post Oak Rd.

Houston,   TX 77055
    	
 
    	
David   Weekley Family Foundation

Attn:  David M. Weekley

1111   North Post Oak Rd.

Houston,   TX 77055
    
	
The   John Mansour Family Limited Partnership

Attn:  Johnny Mansour

111   Congress Avenue, Suite 3000

Austin,   TX 78701
    	
 
    	
Thomas   Bailey

1776   Park Ave., Suite 4 PMB 371

Park   City, UT 84060
    
	
 
    	
 
    	
 
    
	
Mission   City Management Inc.

Attn:  Thomas W. Lyles, Jr.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    	
 
    	
Thomas   W. Lyles Jr.

Mission   City Management, Inc.

8122   Datapoint Drive, Suite 1000

San   Antonio, TX 78229
    
	
 
    	
 
    	
 
    
	
Gary   W. and Lydia G. Junek

845   Sprucewood, Ste 200

Houston,   TX 77024
    	
 
    	
William   R. Camp

8830   Stable Crest Blvd.

Houston,   TX 77024
    
	
 
    	
 
    	
 
    
	
Geoffrey   B. Hoese

2605   Stratford Drive

Austin,   TX 78746
    	
 
    	
Z   Start I, L.P.

Attn:  Paul Zito

111   Congress Avenue, Suite 3000

Austin,   TX 78701
    
	
 
    	
 
    	
 
    
	
Henry   James

P.O. Box   1387

Edmonds,   WA 98020
    	
 
    	
Hines   Investment Holdings Limited Partnership

Attn:  Jeffrey C. Hines

2800   Post Oak Blvd., Suite 5000

Houston,   TX 77056
    
	
 
    	
 
    	
 
    
	
Geejohn   LLC

Attn:  Pam Johnson

54-B   Bayou Pointe Dr.

Houston,   TX 77063
    	
 
    	
JDC   Management, Inc.

Attn:  John D. Chaney

1800   W. Loop S., Suite 1400

Houston,   TX 77027
    
	
 
    	
 
    	
 
    
	
Middlemarch   Capital Partners

Attn:  Steve Shaper

1800   W. Loop S., Suite 1440

Houston,   TX 77027
    	
 
    	
JMM   PHLP, Ltd.

Attn:  James Mansour

111   Congress Avenue, Suite 3000

Austin,   TX 78701
    

 

16

 

	
JAMA   1 Ltd.

Attn:  J. A. Dieck

P.O. Box   13045

Austin,   TX  78711
    	
 
    	
James   P. Wilson

33   Beacon Hill

Sugar   Land, TX 77479
    
	
 
    	
 
    	
 
    
	
Stephen   Yurco

c/o   YDB Ventures I

1400   Wathen Avenue

Austin,   TX 78703
    	
 
    	
Kenneth   Rivera

4301   South Lafayette Street

Cherry   Hills Village, CO 80113
    
	
 
    	
 
    	
 
    
	
BF   Private Capital, LP

Attn:  Paul J. Bury, III

22   W. 6th Street, Suite 600

Austin,   TX  78701
    	
 
    	
Willie   Langston

717   Texas Avenue, Suite 3000

Houston,   TX  77002
    

 

17Exhibit 10.31

 

Loan and Security Agreement

 

	
Borrowers:
    	
(1) Tangoe, Inc., a Delaware corporation located at 35 Executive Boulevard, Orange, CT 06477
    
	
 
    	
 
    
	
 
    	
(2) Traq Wireless, Inc., a Delaware corporation located at 35 Executive Boulevard, Orange, CT 06477
    

 

Date:   March 9, 2007

 

This Loan and Security Agreement is entered into on the above date between ORIX Venture Finance LLC, a Delaware limited liability company (“ORIX”), with an address at 245 Park Avenue, 19th Floor, New York, New York 10167 and the borrowers named above (hereinafter, jointly and severally, individually and collectively, “Borrower”), whose respective chief executive offices are located at the above addresses (“Borrower’s Address”).  The Schedule to this Loan and Security Agreement being signed concurrently (the “Schedule”) is an integral part of this Agreement.  (Definitions of certain terms used in this Agreement are set forth in Section 8 below.)

 

1.  LOANS.

 

1.1  Loans.  Subject to the terms and conditions in this Agreement, ORIX shall make loans to Borrower (the “Loans” and, collectively, the “Loan”), consisting of a Term Loan and Revolving Loans, in the amounts shown on the Schedule.  The Loan shall be repayable as set forth herein, provided that the entire unpaid principal balance of all Loans and any accrued and unpaid interest thereon shall be due and payable on the Maturity Date set forth in the Schedule.  The Term Loan may not be repaid and reborrowed.

 

1.2  Conditions.  The making of the Loans are subject to the satisfaction of the following conditions precedent, which Borrower agrees to satisfy within ten (10) days after the date hereof: (i) all filings have been completed that are necessary or advisable to perfect the security interest of ORIX in the Collateral, including without limitation filings in the United States Copyright Office and United States Patent and Trademark Office (subject to the provisions of the Intellectual Property Security Agreement of even date between Borrower and ORIX), (ii) all documents relating to this Agreement have been executed and delivered, (iii) ORIX has confirmed to its satisfaction that there has been no Material Adverse Change since the date of the last financial statements provided to ORIX, (iv) UCC and other searches deemed necessary by ORIX have been completed and the results thereof are satisfactory to ORIX, (v) Borrower has provided to ORIX evidence of the occurrence of the Traq Acquisition, satisfactory to ORIX in its sole and absolute discretion, (vi) approval of the Board of Directors and stockholders of each Borrower with respect to the Traq Acquisition, and (vii) all other matters relating to the Loan have been completed to ORIX’s satisfaction.  In addition, the making of the Revolving Loans is subject to the completion of the Initial Audit.

 

1.3  Interest.  The Loan and all other monetary Obligations shall bear interest at the rate shown on the Schedule, except where expressly set forth to the contrary in this Agreement or in another written agreement signed by ORIX and Borrower.  Borrower shall pay interest on the Loan accrued for each month no later than the first day of the following month, and at maturity.

 

1.4  Fees.  Borrower shall pay ORIX the fees shown on the Schedule, which are in addition to all interest and other sums payable to ORIX and are not refundable.

 

1.5  Late Fee.  If any payment of principal or accrued interest is not made within five Business Days after the date due, Borrower shall pay ORIX a late payment fee equal to 5% of the amount of such late payment.  In addition, if (i) the entire balance of the Term Loan is not paid within three Business Days after the Term Loan Maturity Date set forth on the Schedule, Borrower shall pay ORIX a late payment fee in the amount of $25,000.00, and (ii) the entire balance of the Revolving Loans is not paid within three Business Days after the Revolving Loan Maturity Date set forth on the Schedule, Borrower shall pay ORIX a late payment fee equal to 5% of the outstanding amount of Revolving Loans.  The provisions of this paragraph shall not be construed as ORIX’s consent to Borrower’s failure to pay any amounts when due, and ORIX’s acceptance of any such late 

 

 

payments shall not restrict ORIX’s exercise of any remedies arising out of any such failure.

 

1.6  Agented Loan Arrangement.

 

(a)                                  Designation of Agent.  Each Borrower hereby designates Tangoe, Inc. as the agent (the “Agent”) of that Borrower to discharge the duties and responsibilities of the Agent as provided herein.

 

(b)                                 Operation of Loan Arrangement.

 

(i)                                     Except as otherwise permitted by ORIX, loans hereunder shall be requested solely by the Agent as agent for each Borrower.

 

(ii)                                  Any Loan which may be made by ORIX under this Agreement and which is directed to the Agent is received by the Agent in trust for that Borrower who is intended to receive such Loan.  The Agent shall distribute the proceeds of any such Loan solely to that Borrower.  Each Borrower shall be directly indebted to ORIX for each Loan distributed to any Borrower by the Agent, together with all accrued interest thereon, as if that amount had been advanced directly by ORIX to a Borrower (whether or not the subject Loan was based upon the accounts and/or inventory or other assets of the Borrower which actually received such distribution), in addition to which each Borrower shall be liable to ORIX for all Obligations under this Agreement, whether or not the proceeds of the Loan are distributed to any particular Borrower.

 

(iii)                               ORIX shall have no responsibility to inquire as to the distribution of Loans made by ORIX through the Agent as described herein.

 

(c)                                  Loans Directly to Borrower.

 

(i)                                     If, for any reason, and at any time during the term of this Agreement:

 

(A)                              any Borrower, including the Agent, as agent for each Borrower, shall be unable to, or prohibited from carrying out the terms and conditions of this Agreement (as determined by ORIX in ORIX’s sole and absolute discretion); or

 

(B)                                ORIX deems it inexpedient (in ORIX’s sole and absolute discretion) to continue making Loans to or for the account of any particular Borrower, or to channel such Loans through tibie Agent, then ORIX may make Loans directly to such Borrower as ORIX determines to be expedient, which Loans may be made without regard to the procedures otherwise included in this Section 1.6.

 

(ii)                                  In the event that ORIX determines to forgo the procedures included herein pursuant to which Loans are to be channeled through the Agent, then ORIX may designate one or more Borrower to fulfill the financial and other reporting requirements otherwise imposed herein upon the Agent.

 

(iii)                               Each Borrower shall remain liable to ORIX for the payment and performance of all Obligations (which payment and performance shall continue to be secured by all Collateral) notwithstanding any determination by ORIX to cease making Loans to or for the benefit of any Borrower.

 

(d)                                 Continuation of Authority of Agent.  The authority of the Agent to request Loans on behalf of, and to bind, each Borrower, shall continue unless and until ORIX acts as provided in Section 1.6(c) above, or ORIX actually receives:

 

(i)                                     written notice of: (i) the termination of such authority, and (ii) the subsequent appointment of a successor Agent, which notice is executed by the respective Presidents of each Borrower then eligible for borrowing under this Agreement; and

 

(ii)                                  written notice from the successor Agent (i) accepting such appointment; (ii) acknowledging that the removal and appointment has been effected by the respective Presidents of each Borrower eligible for borrowing under the within Agreement; and (iii) acknowledging that from and after the date of appointment, the newly appointed Agent shall be bound by the terms hereof, and that as used herein, the term “Agent” shall mean and include the newly appointed Agent.

 

(e)                                  Indemnification.  The Agent and each Borrower respectively shall indemnify, defend, and save and hold ORIX harmless from and against any liabilities, claims, demands, expenses, or losses made against or suffered by ORIX on account of, or arising out of, this Agreement, ORIX’s reliance upon Loan requests made by the Agent, or any other action taken by ORIX hereunder or under any of ORIX’s various agreements with the Agent and/or any Borrower and/or any other Person arising under this Agreement.

 

2.  SECURITY INTEREST.

 

2.1  Security Interest.  To secure the payment and performance of all of the Obligations when due, Borrower 

 

 

hereby grants to ORIX a security interest in all of the following (collectively, the “Collateral”): all right, title and interest of Borrower in and to the following, whether now owned or hereafter arising or acquired and wherever located: all Accounts; all Inventory; all Equipment; all General Intangibles (including without limitation all Intellectual Property and Deposit Accounts); all Investment Property; all Other Property; and any and all claims, rights and interests in any of the above, and all guaranties and security for any of the above, and all substitutions and replacements for, additions, accessions, attachments, accessories, and improvements to, and proceeds (including proceeds of any insurance policies, proceeds of proceeds and claims against third parties) of, any and all of the above, and all Borrower’s books relating to any of the above, including without limitation the assets identified in the Representations.  Notwithstanding the foregoing, once all Obligations related to the Term Loan have been paid in full, the Collateral shall not include the Released Intellectual Property.

 

3.  REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER.

 

In order to induce ORIX to enter into this Agreement and to make the Loan, Borrower represents and warrants to ORIX as follows, and Borrower covenants that the following representations will continue to be true, except to the extent that they are made as of a specific prior date, and that Borrower will at all times comply with all of the following covenants:

 

3.1  Corporate Existence and Authority.  Borrower is and will continue to be, duly organized, validly existing and in good standing under the laws of its state of incorporation.  Borrower is and will continue to be qualified and licensed to do business in all jurisdictions in which any failure to do so would result in a Material Adverse Change.  The execution, delivery and performance by Borrower of this Agreement, and all other documents contemplated hereby (i) have been duly and validly authorized, (ii) are enforceable against Borrower in accordance with their terms (except as enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors’ rights generally), (iii) do not violate Borrower’s articles or certificate of incorporation, or Borrower’s by-laws, or any law or any material agreement or instrument which is binding upon Borrower or its property, and (iv) do not constitute grounds for acceleration of any indebtedness or obligation under any agreement or instrument which is binding upon Borrower or its property.

 

3.2  Name; Trade Names and Styles.  As of the date hereof, the full correct name of Borrower and its state of incorporation are set forth in the heading to this Agreement.  Listed on the Representations are all prior names of Borrower and all of Borrower’s present and prior trade names.  Borrower shall give ORIX 30 days’ prior written notice before changing its name or doing business under any other name.  Borrower has complied, and will in the future comply, with all laws relating to the conduct of business under a fictitious business name.

 

3.3  Place of Business; Location of Collateral.  The address set forth in the heading to this Agreement is Borrower’s chief executive office or state of incorporation.  In addition, Borrower has places of business and Collateral is located only at the locations set forth in the Representations.  Borrower will give ORIX at least 15 days prior written notice before opening any additional place of business containing Collateral with a value in excess of Fifty Thousand Dollars ($50,000.00), changing its chief executive office, or moving any of the Collateral to a location other than Borrower’s Address or one of the locations set forth in the Representations.

 

3.4  Title to Collateral.  Borrower is now, and will at all times in the future be, the sole owner of all the Collateral, except for specific items of Equipment which are leased by Borrower.  The Collateral and Intellectual Property now is and will remain free and clear of any and all liens, charges, security interests, encumbrances and adverse claims, except for the security interest in favor of ORIX and Permitted Liens.  ORIX now has, and will continue to have, a first-priority perfected and enforceable security interest in all of the Collateral, subject only to Permitted Liens, and Borrower will at all times defend ORIX and the Collateral and Intellectual Property against all claims of others.  None of the Collateral now is or will be affixed to any real property in such a manner, or with such intent, as to become a fixture.  Borrower will keep in full force and effect, and will comply with all the terms of, any lease of real property where any of the Collateral now or in the future may be located.

 

3.5  Maintenance of Collateral.  Borrower, at its own expense, shall maintain the Collateral in good working condition, ordinary wear and tear excepted, and Borrower will not use the Collateral for any unlawful purpose.  Borrower will immediately advise ORIX in writing of any material loss or damage to the Collateral.

 

3.6  Books and Records.  Borrower has maintained and will maintain at Borrower’s Address complete and accurate books and records, comprising an accounting system in accordance with GAAP.

 

3.7  Financial Condition, Statements and Reports.  All financial statements now or in the future delivered to ORIX have been, and will be, prepared in conformity with GAAP and now and in the future will completely and fairly reflect the financial condition of Borrower, at the times and for the periods therein stated.  Between the last date covered by any such statement provided to ORIX and the date hereof, there has been no Material Adverse Change. Borrower is now and will continue to be solvent.

 

3.8  Tax Returns and Payments; Pension Contributions.  Borrower has timely filed, and will timely file, all tax returns and reports required by applicable law, and Borrower has timely paid, and will timely pay, all 

 

 

applicable taxes, assessments, deposits and contributions now or in the future owed by Borrower; provided, that, Borrower, may contest such taxes if Borrower has a good faith belief that such taxes are improper and Borrower maintains sufficient reserves to pay such taxes.

 

3.9  Compliance with Law.  Borrower has complied, and will comply, in all material respects, with all provisions of all applicable laws and regulations, including, but not limited to, those relating to Borrower’s ownership of real or personal property, the conduct and licensing of Borrower’s business, compensation and benefits payable or provided to Borrower’s employees, and all environmental matters.  All proceeds of all Loans shall be used solely for lawful business purposes.

 

3.10  Litigation.  Except as disclosed to ORIX in writing, there is no claim, suit, litigation, proceeding or investigation pending or, to Borrower’s knowledge, threatened against or affecting Borrower involving more than $25,000.  Borrower will promptly inform ORIX in writing of any claim, proceeding, litigation or investigation in the future threatened or instituted by or against Borrower involving any claim of $25,000 or more.

 

4.  ADDITIONAL DUTIES OF THE BORROWER.

 

4.1  Insurance.  Borrower shall, at all times, insure all of the Collateral and carry such other business insurance, with insurers reasonably acceptable to ORIX, in such form and amounts as ORIX may reasonably require, and Borrower shall provide evidence of such insurance to ORIX, so that ORIX is satisfied that such insurance is, at all times, in full force and effect.  All such insurance policies shall name ORIX as an additional loss payee, and shall contain a lenders loss payee endorsement in form reasonably acceptable to ORIX.  Upon receipt of the proceeds of any such insurance, ORIX shall apply such proceeds in reduction of the Obligations as ORIX shall determine in its sole discretion, except that, provided no Default or Event of Default has occurred and is continuing, ORIX shall release to Borrower insurance proceeds with respect to Equipment totaling less than $250,000 (which amount shall increase each year on a percentage basis based upon percentage increases in Borrower’s annual revenue from Borrower’s fiscal year ended December 31, 2006), which shall be utilized by Borrower for the replacement of the Equipment with respect to which the insurance proceeds were paid.  ORIX may require reasonable assurance that the insurance proceeds so released will be so used.  If Borrower fails to provide or pay for any insurance, ORIX may, but is not obligated to, obtain the same at Borrower’s expense.  Borrower shall promptly deliver to ORIX copies of all reports made to insurance companies.

 

4.2  Reports.  Borrower, at its expense, shall provide ORIX with the written reports set forth in the Schedule, and such other written reports with respect to Borrower (including budgets, sales projections, operating plans and other financial documentation), as ORIX shall from time to time reasonably specify.

 

4.3  Access to Collateral, Books and Records.  At reasonable times, and on five Business Day’s notice (except if a Default or Event of Default has occurred and is continuing or if ORIX in its good faith business judgment believes or suspects that Borrower has engaged in defalcation, intentional misrepresentation, or fraud, in which case then ORIX may do the following at any time and without any notice), ORIX, or its agents, shall have the right to inspect the Collateral, and the right to audit and copy Borrower’s books and records.  The foregoing inspections and audits, which ORIX shall be entitled to conduct no more than once annually unless an Event of Default has occurred (and until forty-five (45) days after the waiver or cure of such Event of Default), in which event ORIX may conduct such inspections and audits as often as it shall deem necessary, shall be $850 per person per day (or such other amount as shall represent ORIX’s then current standard charge for the same), plus all other reasonable out-of-pockets costs and expenses incurred by ORIX in connection therewith.

 

4.4  Remittance of Proceeds.  All proceeds arising from the sale or other disposition of any Collateral (other than (i) the proceeds of the sale of Inventory in the ordinary course of business or the non-exclusive licensing of Intellectual Property in the ordinary course of business, (ii) the proceeds of Accounts (which shall be handled as provided in Section 5.4 below), or (iii) proceeds of dispositions of obsolete or unneeded Equipment in the ordinary course of business in an amount not in excess of $50,000 in any fiscal year) shall be delivered, in kind, by Borrower to ORIX in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, to be applied to the Obligations in such order as ORIX shall determine.  Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement.

 

4.5  Negative Covenants.  Borrower shall not, without ORIX’s prior written consent, do any of the following:

 

(i)  merge or consolidate with another corporation or entity;

 

(ii)  acquire any assets, except in the ordinary course of business;

 

(iii)  enter into any other transaction outside the ordinary course of business;

 

(iv)  sell or transfer any Collateral (except that, provided no Default or Event of Default has occurred and is continuing, Borrower may do the following in good faith arm’s length transactions, in the ordinary course of business: (A) sell Inventory; (B) enter into non-exclusive licenses with respect to its Intellectual Property; and (C) trade-in or dispose of obsolete or unneeded Equipment);

 

 

(v)  store any Inventory or other Collateral with any warehouseman or other third party;

 

(vi)  make any loans of any money or other assets to, or purchase the stock or other securities of, or make any other investment in, any other Person, except for advances to employees to cover travel and other expenses incurred in the course of such employees’ employment with Borrower;

 

(vii)  guarantee or otherwise become liable with respect to the obligations of another Person;

 

(viii)  pay or declare any dividends on Borrower’s stock (other than dividends payable solely in shares of stock of Borrower);

 

(ix)  redeem, retire, purchase or otherwise acquire, directly or indirectly, any of Borrower’s stock, provided that Borrower may repurchase the stock of former employees or consultants pursuant to stock repurchase agreements so long as a Default or Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchases do not exceed in the aggregate of $150,000 per fiscal year;

 

(x)  make any change in Borrower’s organizational structure;

 

(xi)  reincorporate in another state; or (xii) dissolve or elect to dissolve; or

 

(xii)  agree to do any of the foregoing.

 

4.6  Litigation Cooperation.  Should any third-party suit or proceeding be instituted by or against ORIX with respect to any Collateral or in any manner relating to Borrower, Borrower shall, without expense to ORIX, make available Borrower and its officers, employees and agents, and Borrower’s books and records, without charge, to the extent that ORIX may deem them reasonably necessary in order to prosecute or defend any such suit or proceeding.

 

4.7  Notification of Changes.  Borrower will promptly notify ORIX in writing of any change in its officers or directors, the opening of any new bank account or other Deposit Account, and any Material Adverse Change.

 

4.8  Financial Covenants.  Borrower shall comply with all of the Financial Covenants set forth in the Schedule, and all other covenants and provisions set forth in the Schedule.

 

4.9  Landlord Agreements.  Borrower shall, from time to time, upon ORIX’s request, use its best efforts to obtain written waivers and agreements from Borrower’s landlords, on such form and containing such provisions as ORIX shall specify.

 

4.10  Board Information Rights.  Borrower shall give ORIX copies of minutes, board books, consents and other materials resulting from or relating to any meeting of the Board of Directors, which minutes, board books, consents and materials shall be appropriately redacted to protect information that is confidential and/or sensitive, as reasonably determined by Borrower.  Any information provided to ORIX shall be subject to the confidentiality agreement in Section 9.3 of this Agreement.

 

4.11  Further Assurances.  Borrower agrees, at its expense, on request by ORIX, to execute all documents and take all actions, as ORIX may deem reasonably necessary or useful in order to perfect and maintain ORIX’s perfected security interest in the Collateral, and in order to fully consummate the transactions contemplated by this Agreement.

 

4.12  Indemnity.  Borrower hereby agrees to indemnify the following Persons (collectively, the “Indemnitees”): ORIX and its affiliates, subsidiaries, parent, directors, officers, employees, agents, and attorneys, and to hold them harmless from and against any and all claims, debts, liabilities, demands, obligations, actions, causes of action, penalties, costs and expenses (including attorneys’ fees and expenses), of every nature, character and description, which any Indemnitee may sustain or incur based upon or arising out of any of the Obligations, any relationship or agreement between ORIX and Borrower, or any other matter, cause or thing whatsoever occurred, done, omitted or suffered to be done by any Indemnitee relating to Borrower or the Obligations; provided that the indemnity hereunder to an Indemnitee shall not extend to damages proximately caused by such Indemnitee’s own gross negligence or willful misconduct.  Notwithstanding any provision in this Agreement to the contrary, the indemnity agreement set forth in this Section shall survive any termination of this Agreement and shall for all purposes continue in full force and effect.

 

5.  ACCOUNTS.

 

5.1  Representations Relating to Accounts.  Borrower represents and warrants to ORIX as follows: Each Account with respect to which Loans are requested by Borrower shall, on the date each Loan is requested and made, (i) represent an undisputed bona fide existing unconditional obligation of the Account Debtor created by the sale, delivery, and acceptance of goods or the rendition of services, or the non-exclusive licensing of Intellectual Property, in the ordinary course of Borrower’s business, and (ii) meet the Minimum Eligibility Requirements set forth in Section 8 below.

 

5.2  Representations Relating to Documents and Legal Compliance.  Borrower represents and warrants to ORIX as follows: All statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Accounts are and shall be true and correct and all such invoices, instruments and other documents and all of Borrower’s books and records are and 

 

 

shall be genuine and in all respects what they purport to be.  All sales and other transactions underlying or giving rise to each Account shall comply in all material respects with all applicable laws and governmental rules and regulations.  To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Accounts are and shall be genuine, and all such documents, instruments and agreements are and shall be legally enforceable in accordance with their terms.

 

5.3  Schedules and Documents relating to Accounts.  Borrower shall deliver to ORIX the written reports set forth on the Schedule.  If requested by ORIX, Borrower shall furnish ORIX with copies (or, at ORIX’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts, and Borrower warrants the genuineness of all of the foregoing.  In addition, Borrower shall deliver to ORIX, on its request, the originals of all instruments, chattel paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary endorsements, and copies of all credit memos.

 

5.4  Collection of Accounts.  Borrower shall have the right to collect all proceeds of Accounts, unless and until a Default or an Event of Default has occurred and is continuing.  Upon the occurrence of a Default or an Event of Default, ORIX may in, its sole discretion, require that all proceeds of Accounts be deposited by Borrower into a lockbox account, or such other “blocked account” as ORIX may specify, pursuant to a blocked account agreement in such form as ORIX may specify in its good faith business judgment.

 

5.5  Disputes.  Borrower shall notify ORIX promptly of all disputes or claims relating to Accounts if the amount involved in any such dispute or claim is equal to or greater than the greater of (a) five percent (5.0%) of the amount of such Account, and (b) Fifteen Thousand Dollars ($15,000.00).  Borrower shall not forgive (completely or partially), compromise or settle any Account for less than payment in full, or agree to do any of the foregoing, except that Borrower may do so, provided that: (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, and in arm’s length transactions, which are reported to ORIX on the regular reports provided to ORIX; (ii) no Default or Event of Default has occurred and is continuing; and (iii) taking into account all such discounts, settlements and forgiveness, the total outstanding Revolving Loans will not exceed the Revolving Loan Limit.

 

5.6  Returns.  Provided no Event of Default has occurred and is continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly determine the reason for such return and promptly issue a credit memorandum to the Account Debtor in the appropriate amount.  In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for ORIX, and immediately notify ORIX of the return of the Inventory.

 

5.7  Verification.  Upon the occurrence of an Event of Default (and until fifteen (15) days after the waiver or cure of such Event of Default), or in connection with any Collateral audits or inspections pursuant to Section 4.3, ORIX may, from time to time, verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, by means of mail, telephone or otherwise, either in the name of Borrower or ORIX or such other name as ORIX may choose.

 

5.8  No Liability.  ORIX shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall ORIX be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account.  Nothing herein shall, however, relieve ORIX from liability for its own gross negligence or willful misconduct.

 

6.  TERM.

 

6.1  Maturity Date.  On the maturity date set forth on the Schedule (the “Maturity Date”) or any earlier occurrence of any Event of Default, Borrower shall pay and perform in full all Obligations, whether evidenced by installment notes or otherwise, and whether or not all or any part of such Obligations are otherwise then due and payable.

 

6.2  Prepayment of Term Loan.  Borrower shall have the option of prepaying the principal amount of the Term Loan, prior to the Maturity Date, in whole or in part, provided that Borrower concurrently pays ORIX (i) all accrued and unpaid interest on the principal so prepaid and (ii) a prepayment fee equal to 2.0% of the amount prepaid if prepayment occurs on or prior to the second anniversary of the date of this Agreement, and 1.0% of the amount prepaid if prepayment occurs after the second anniversary of the date of this Agreement.  Said prepayment fee shall be due from Borrower to ORIX upon any prepayment of the principal of the Term Loan, including without limitation any prepayment as a result of an Event of Default.

 

6.3  Termination Statements.  Upon payment and performance in full of all the Obligations, ORIX shall promptly deliver to Borrower UCC termination statements and such other documents as may be reasonably required to terminate ORIX’s security interests in the Collateral.

 

 

7.  EVENTS OF DEFAULT AND REMEDIES.

 

7.1  Events of Default.  The occurrence of any of the following events shall constitute an “Event of Default” under this Agreement, and Borrower shall give ORIX immediate written notice thereof: (a) Any warranty, representation, statement, report or certificate made or delivered to ORIX by Borrower or any of Borrower’s officers, employees or agents, now or in the future, shall be untrue or misleading in a material respect; or; (b) Borrower shall fail to pay any principal or interest payment on any Loan within three (3) Business Days after the date due; or (c) Borrower shall fail to pay any other monetary Obligation, within three (3) Business Days after the date due; or (d) Borrower shall fail to comply with any of the Financial Covenants set forth in the Schedule or with any provision under Subsection 4.5 or 4.10 hereof; or (e) Borrower shall fail to perform any non-monetary Obligation within three Business Days after the date due; or (f) any levy, assessment, attachment, seizure, lien or encumbrance (other than a Permitted Lien) is made on all any part of the Collateral or Intellectual Property which is not cured within 10 days after the occurrence of the same; or (g) Borrower breaches any material contract or obligation, which has or may reasonably be expected to have a material adverse effect on Borrower’s business or financial condition; or (h) dissolution, termination of existence, insolvency, business failure or temporary or permanent suspension of business of Borrower; or appointment of a receiver, trustee or custodian, for all or any part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding by or against Borrower under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect; or (i) revocation or termination of, or limitation or denial of liability upon, any guaranty of the Obligations or any attempt to do any of the foregoing; or (j) revocation or termination of, or limitation or denial of liability upon, any pledge of any certificate of deposit, securities, money or other property or asset pledged by any third party to secure any or all of the Obligations, or any attempt to do any of the foregoing, or commencement of proceedings by or against any such third party under any bankruptcy or insolvency law; or (k) there shall be a change in the record or beneficial ownership of an aggregate of more than 30% of the outstanding shares of stock or other equity ownership interest in Borrower (excluding equity investments where all of the proceeds of such investments are retained by Borrower), in one or more transactions, compared to the ownership of outstanding shares of stock of Borrower in effect on the date hereof, without the prior written consent of ORIX; or (1) Borrower shall generally not pay its debts as they become due, or Borrower shall conceal, remove or transfer any part of its property, with intent to hinder, delay or defraud its creditors, or make or suffer any transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent conveyance or similar law; or (m) a Material Adverse Change shall occur; or (n) Borrower makes any payment on account of any indebtedness or obligation which has been subordinated to the Obligations other than as permitted in the applicable subordination agreement, or if any Person who has subordinated such indebtedness or obligations terminates or in any way limits his subordination agreement; or (o) an event of default shall occur and be continuing under any other Loan Document (after giving effect to, but without duplication of, grace periods under such other Loan Document applicable thereto).  ORIX may cease making any Loans hereunder during any of the above cure periods, and thereafter if an Event of Default has occurred and is continuing.

 

7.2  Remedies.  Upon the occurrence and during the continuance of any Event of Default, ORIX, at its option, and without notice or demand of any kind (all of which are hereby expressly waived by Borrower), may do any one or more of the following: (a) cease making Loans or otherwise extending credit to Borrower under this Agreement or any other document or agreement; (b) accelerate and declare all or any part of the Obligations to be immediately due, payable, and performable, notwithstanding any deferred or installment payments allowed by any instrument evidencing or relating to any Obligation; (c) accelerate or extend the time of payment of, compromise, issue credits on, or bring suit on the Accounts and other Collateral (in the name of Borrower or ORIX), settle or adjust disputes or claims directly with Account Debtors for amounts and upon terms which it considers advisable, and notify Account Debtors on the Accounts and other Collateral that the Accounts and Collateral have been assigned to ORIX, and that payments in respect thereof shall be made directly to ORIX, and otherwise administer and collect the Accounts and other Collateral; (d) collect, receive, dispose of and realize upon any Investment Property, including withdrawal of any and all funds from any securities accounts; (e) take possession of any or all of the Collateral wherever it may be found, and for that purpose Borrower hereby authorizes ORIX without judicial process to enter onto any of Borrower’s premises without interference to search for, take possession of, keep, store, or remove any of the Collateral, and remain on the premises or cause a custodian to remain on the premises in exclusive control thereof, without charge for so long as ORIX deems it reasonably necessary in order to complete the enforcement of its rights under this Agreement or any other agreement; provided, however, that should ORIX seek to take possession of any of the Collateral by court process, Borrower hereby irrevocably waives: (i) any bond and any surety or security relating thereto required by any statute, court rule or otherwise as an incident to such possession; (ii) any demand for possession prior to the commencement of any suit or action to recover possession thereof; and (iii) any requirement that ORIX retain possession of, and not dispose of, any such Collateral until after trial or final judgment; (f) require Borrower to assemble any or all of the Collateral and make it available to ORIX at places designated by ORIX which are reasonably convenient to ORIX and Borrower, and to remove the Collateral to such locations as ORIX may deem advisable; (g) complete the processing, manufacturing or repair of any Collateral prior to a disposition thereof and, for such purpose and for the purpose of removal, ORIX shall have the right to use Borrower’s premises, vehicles, hoists, lifts, cranes, 

 

 

equipment and all other property without charge; (h) sell, lease or otherwise dispose of any of the Collateral, in its condition at the time ORIX obtains possession of it or after further manufacturing, processing or repair, at one or more public and/or private sales, in lots or in bulk, for cash, exchange or other property, or on credit, and to adjourn any such sale from time to time without notice other than oral announcement at the time scheduled for sale; or (i) deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any control agreement or similar agreements providing control of any Collateral.  ORIX shall have the right to conduct such disposition on Borrower’s premises without charge, for such time or times as ORIX deems reasonable, or on ORIX’s premises, or elsewhere and the Collateral need not be located at the place of disposition.  ORIX may directly or through any affiliated company purchase or lease any Collateral at any such public disposition, and if permissible under applicable law, at any private disposition.  Any sale or other disposition of Collateral shall not relieve Borrower of any liability Borrower may have if any Collateral is defective as to title or physical condition or otherwise at the time of sale.  All reasonable attorneys’ fees, expenses, costs, liabilities and obligations incurred by ORIX with respect to the foregoing shall be added to and become part of the Obligations, shall be due on demand, and shall bear interest at a rate equal to the highest interest rate applicable to any of the Obligations.  Without limiting any of ORIX’s rights and remedies, regardless of the adequacy of any Collateral securing the Obligations, ORIX may exercise a right of offset with respect to any and all indebtedness, liabilities, and obligations owing from it to Borrower, to the full extent of all the Obligations owing to ORIX.  Without limiting any of ORIX’s right and remedies, from and after the occurrence and during the continuation of any Event of Default, the interest rate applicable to the Obligations shall be increased by an additional two percent (2.0%) per annum.

 

7.3  Standards for Determining Commercial Reasonableness.  Borrower and ORIX agree that a sale or other disposition (collectively, “sale”) of any Collateral which complies with the following standards will conclusively be deemed to be commercially reasonable: (i) Notice of the sale is given to Borrower at least seven days prior to the sale, and, in the case of a public sale, notice of the sale is published at least seven days before the sale in a newspaper of general circulation in the county where the sale is to be conducted; (ii) Notice of the sale describes the collateral in general, non-specific terms; (iii) The sale is conducted at a place designated by ORIX, with or without the Collateral being present; (iv) The sale commences at any time between 8:00 a.m. and 6:00 p.m.; (v) Payment of the purchase price in cash or by cashier’s check or wire transfer is required; (vi) With respect to any sale of any of the Collateral, ORIX may (but is not obligated to) direct any prospective purchaser to ascertain directly from Borrower any and all information concerning the same.  ORIX shall be free to employ other methods of noticing and selling the Collateral, in its discretion, if they are commercially reasonable.

 

7.4  Investment Property.  If a Default or an Event of Default has occurred and is continuing, Borrower shall hold all payments on, and proceeds of, and distributions with respect to, Investment Property in trust for ORIX, and Borrower shall deliver all such payments, proceeds and distributions to ORIX, immediately upon receipt, in their original form, duly endorsed, to be applied to the Obligations in such order as ORIX shall determine.  Borrower recognizes that ORIX may be unable to make a public sale of any or all of the Investment Property, by reason of prohibitions contained in applicable securities laws or otherwise, and expressly agrees that a private sale to a restricted group of purchasers for investment and not with a view to any distribution thereof shall be considered a commercially reasonable sale thereof.

 

7.5  Power of Attorney.  Borrower grants to ORIX an irrevocable power of attorney coupled with an interest, authorizing and permitting ORIX (acting through any of its employees, attorneys or agents) at any time, at its option, but without obligation, with or without notice to Borrower, and at Borrower’s expense, to do any or all of the following, in Borrower’s name or otherwise, but ORIX agrees to exercise the following powers in a commercially reasonable manner: (a) execute on behalf of Borrower any documents that ORIX may, in its good faith business judgment, deem advisable in order to perfect and maintain ORIX’s security interest in the Collateral, or in order to exercise a right of Borrower or ORIX, or in order to fully consummate all the transactions contemplated under this Agreement, or under any and all other present and future agreements, to execute and deliver to any securities intermediary or other Person any entitlement order, account control agreement or other notice, document or instrument with respect to any Investment Property constituting Collateral, to make any payment or take any action necessary or desirable to protect or preserve any Collateral or ORIX’s security interest therein or the priority thereof, or in order to fully consummate all the transactions contemplated under this Agreement or any other Loan Document; (b) after the occurrence and during the continuance of any Event of Default, without limiting ORIX’s other rights and remedies, do any of the following: (i) take control in any manner of any cash or non-cash items of payment or proceeds of Collateral; endorse the name of Borrower upon any instruments, or documents, evidence of payment or Collateral that may come into ORIX’s possession; (ii) grant extensions of time to pay, compromise claims and settle Accounts, General Intangibles and Other Property for less than face value and execute all releases and other documents in connection therewith; (iii) pay any sums required on account of Borrower’s taxes or to secure the release of any liens therefor; and (iv) settle and adjust, and give releases of, any insurance claim that relates to any of the Collateral and obtain payment therefor.  In the event that ORIX conducts a secured party’s private or public sale of Borrower’s Intellectual Property, ORIX shall provide notice of such sale to the Investors.  Furthermore, so long as the Investors are willing bid at least One Dollar ($1.00) more than the highest bid at any private sale, ORIX shall sell the Intellectual Property to the Investors so long as (a) the 

 

 

Investors notify ORIX of their commitment to accept ORIX’s offer within five (5) Business Days of the Investors’ receipt of such offer, and (b) such sale is finalized within thirty (30) Business Days of the Investors’ receipt of such offer.

 

7.6  Application of Proceeds.  All proceeds realized as the result of any sale or other disposition of the Collateral shall be applied by ORIX first to the reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by ORIX in the exercise of its rights under this Agreement, second to the interest due upon any of the Obligations, and third to the principal of the Obligations, in such order as ORIX shall determine in its sole discretion.  Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to ORIX for any deficiency.  If ORIX, in its sole discretion, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, ORIX shall have the option, exercisable at any time, in its sole discretion, of either reducing the Obligations by the principal amount of purchase price or deferring the reduction of the Obligations until the actual receipt by ORIX of the cash therefor.

 

7.7  Remedies Cumulative.  In addition to the rights and remedies set forth in this Agreement, ORIX shall have all the other rights and remedies accorded a secured party under the Code and under all other applicable laws, and under any other instrument or agreement now or in the future entered into between ORIX and Borrower, and all of such rights and remedies are cumulative and none is exclusive.  Exercise or partial exercise by ORIX of one or more of its rights or remedies shall not be deemed an election, nor bar ORIX from subsequent exercise or partial exercise of any other rights or remedies.  The failure or delay of ORIX to exercise any rights or remedies shall not operate as a waiver thereof, but all rights and remedies shall continue in full force and effect until all of the Obligations have been fully paid and performed.

 

8.  DEFINITIONS.  As used in this Agreement, the following terms have the following meanings:

 

“Accounts” means all of the following, now owned and hereafter acquired by Borrower: all “accounts” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made (whether or not earned by performance), and all guaranties and other security therefor, and all rights of stoppage in transit and all other rights or remedies of an unpaid vendor, lienor or secured party.

 

“Account Debtor” means the obligor on an Account.

 

“Agreement” and “this Agreement” means this Loan and Security Agreement and all Exhibits and Schedules hereto and all modifications and amendments to, extensions of, and replacements for this Agreement.

 

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

 

“Code” means the Uniform Commercial Code as adopted and in effect in the State of New York on the date hereof.

 

“Collateral” has the meaning set forth in Section 2.1 above.

 

“continuing” when used with reference to a Default or an Event of Default means that the Default or Event of Default has occurred and has not been either waived in writing by ORIX or cured within any applicable cure period.

 

“Default” means any event which with notice or passage of time or both, would constitute an Event of Default.

 

“Deposit Account” means all of the following, now owned and hereafter acquired by Borrower: all “deposit accounts” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all general and special bank accounts, demand accounts, checking accounts, savings accounts and certificates of deposit.

 

“Eligible Accounts” means Accounts arising in the ordinary course of Borrower’s business from the sale of goods or the rendition of services, or the non-exclusive licensing of Intellectual Property (including Accounts resulting from Borrower’s sale of annual maintenance, service, or license contracts, provided that such Accounts meet the Minimum Eligibility Requirements set forth below).  The following (the “Minimum Eligibility Requirements”) are the minimum requirements for a Account to be an Eligible Account: (i) the Account must not be outstanding for more than 90 days from its invoice date (or longer at ORIX’s sole discretion) (the “Eligibility Period”), (ii) the Account must not represent progress billings, or be due under a fulfillment or requirements contract with the Account Debtor, (iii) the Account must not be subject to any contingencies (including Accounts arising from sales on consignment, guaranteed sale or other terms pursuant to which payment by the Account Debtor may be conditional), (iv) the Account must not be owing from an Account Debtor with whom Borrower has any dispute (whether or not relating to the particular Account), but only to the extent of such dispute so long as such dispute is an economic dispute (and not a dispute pertaining to service or performance), (v) the Account must not be owing from an Affiliate of Borrower, (vi) the Account must not be owing from an Account Debtor whose financial condition is not acceptable to ORIX, or which is subject to any insolvency or bankruptcy proceeding, or which, fails or goes out of a material portion of its business, or if ORIX at any time determines in its good faith business judgment that the prospect of payment or performance by the Account Debtor with respect thereto is materially impaired, 

 

 

(vii) the Account must not be owing from the United States or any department, agency or instrumentality thereof (unless there has been compliance, to ORIX’s satisfaction, with the United States Assignment of Claims Act), (viii) the Account must not be owing from an Account Debtor located outside the United States, except for Eligible Foreign Accounts, (ix) the Account must not be owing from an Account Debtor to whom Borrower is or may be liable for goods purchased from such Account Debtor or otherwise, but only to the extent of such liability or potential liability, (x) credit balances over ninety (90) days from invoice date.  Accounts owing from one Account Debtor will not be deemed Eligible Accounts to the extent they exceed 25% of the total Accounts outstanding, and (xi) other Accounts which ORIX in its sole discretion shall deem eligible for borrowing.  In addition, if more than 50% of the Accounts owing from an Account Debtor are outstanding for a period longer than their Eligibility Period (without regard to unapplied credits) or are otherwise not Eligible Accounts, then all Accounts owing from that Account Debtor will be deemed ineligible for borrowing.  ORIX may, from time to time, in its good faith business judgment, revise the Minimum Eligibility Requirements, upon written notice to Borrower.

 

“Eligible Foreign Accounts” are Accounts (i) that would otherwise be Eligible Accounts but for the fact that the Account Debtor is located outside of the United States and for which ORIX agrees in writing in its sole and absolute discretion (a) will be acceptable, and (b) will be treated as Eligible Accounts for Advance Rate purposes, and (ii) Accounts that are due and owing from Fortune 500 companies.

 

“Equipment” means all of the following, now owned and hereafter acquired by Borrower: all “equipment” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles, and any interest in any of the foregoing.

 

“Event of Default” means any of the events set forth in Section 7.1 of this Agreement.

 

“GAAP” means generally accepted accounting principles consistently applied.

 

“General Intangibles” means all of the following, now owned and hereafter acquired by Borrower: all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all Intellectual Property, Deposit Accounts, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, licenses, permits, domain names, claims, income tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.

 

“Initial Audit” shall be the receipt by ORIX of the results of a complete audit of Borrower’s Accounts, with results satisfactory to ORIX in its sole and absolute discretion.

 

“Intellectual Property” means all of the following, now owned and hereafter acquired by Borrower: all (a) copyrights, copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, (b) trade secret rights, including all rights to unpatented inventions and know-how, and confidential information; (c) mask work or similar rights available for the protection of semiconductor chips; (d) patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same; (e) trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are registered, and all applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by any such trademarks; (f) computer software and computer software products; (g) designs and design rights; (h) technology; (i) all claims for damages by way of past, present and future infringement of any of the rights included above; (j) all licenses or other rights to use any property or rights of a type described above.

 

“Inventory” means all of the following, now owned and hereafter acquired by Borrower: all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.

 

“Investment Property” means all of the following, now owned and hereafter acquired by Borrower: all investment property, securities, stocks, bonds, debentures, debt securities, partnership interests, limited liability company interests, options, security entitlements, securities accounts, commodity contracts, commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, and all other securities of every kind, whether certificated or uncertificated.

 

“Investors” means any preferred equity holder of Tangoe, Inc.

 

“Loan Documents” means this Loan Agreement and all other present and future documents, instruments and agreements securing or evidencing any Loan or otherwise relating hereto.

 

 

“Material Adverse Change” means (i) a material adverse change in the business, operations, results of operations, assets, liabilities, condition or prospects of Borrower, (ii) the impairment of Borrower’s ability to perform the Obligations, or of ORIX to enforce the Obligations or realize upon the Collateral, or (iii) a material adverse change in the value of the Collateral or the amount which ORIX would be likely to receive in the liquidation of the Collateral.

 

“Obligations” means the Term Loan, the Revolving Loans, and all other present and future Loans, advances, debts, liabilities, obligations, guaranties, covenants, duties and indebtedness at any time owing by Borrower or any of its subsidiaries or affiliates to ORIX or its parent or any of its subsidiaries or affiliates, whether evidenced by this Agreement or any note or other instrument or document, whether arising from an extension of credit, loan, guaranty, indemnification or otherwise, whether direct or indirect (including, without limitation, those acquired by assignment and any participation by ORIX in Borrower’s indebtedness or obligations owing to others), absolute or contingent, due or to become due, including, without limitation, all interest, charges, expenses, fees, attorney’s fees, expert witness fees, audit fees, loan fees, prepayment fees, and any other sums chargeable to Borrower under this Agreement or under any other present or future instrument or agreement between Borrower and ORIX.

 

“Other Property” means all of the following, now owned and hereafter acquired by Borrower: all of the following as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and all rights relating thereto: “documents”, “instruments”, “chattel paper”, “letters of credit”, “fixtures”, and “money”, and all other tangible and intangible personal property and rights of any other kind which are not included in the other items of Collateral, whether or not covered by the Code.

 

“Permitted Liens” shall mean the following: (i) purchase money security interests in specific items of Equipment; (ii) leases of specific items of Equipment; (iii) liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings, provided the same have no priority over any of ORIX’s security interests; (iv) liens of materialmen, mechanics, warehousemen, carriers, or other similar liens arising in the ordinary course of business and securing obligations which are not delinquent or are being contested in good faith by appropriate proceedings, (v) liens which constitute banker’s liens, rights of set-off or similar rights as to deposit accounts or other funds maintained with a bank or other financial institution (but only to the extent such banker’s liens, rights of set-off or other rights are in respect of customary service charges relative to such deposit accounts and other funds, and not in respect of any loans or other extensions of credit by such bank or other financial institution to Borrower), (vi) cash deposits or pledges of an aggregate amount not to exceed $100,000 to secure the payment of worker’s compensation, unemployment insurance or other social security benefits or obligations, public or statutory obligations, surety or appeal bonds, bid or performance bonds, or other obligations of a like nature incurred in the ordinary course of business, and (vii) liens described on Exhibit A hereto.

 

“Person” means any individual, sole proprietorship, partnership, joint venture, trust, limited liability company, unincorporated organization, association, corporation, government, or any agency or political division thereof, or any other entity.

 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by Citibank N.A., or, if not available, another major money center bank in New York City selected by ORIX in its sole discretion, as its prime rate in effect (said prime rate not being intended to be the lowest rate of interest charged by the referenced bank in connection with extensions of credit), or if such rate is not available, by a reasonable alternative means of determining the rate of interest selected by ORIX in its sole discretion.

 

“Released Intellectual Property” is all (a) copyrights, copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, (b) trade secret rights, including all rights to unpatented inventions and know-how, and confidential information; (c) mask work or similar rights available for the protection of semiconductor chips; (d) patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same; (e) trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are registered, and all applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by any such trademarks; (f) computer software and computer software products; (g) designs and design rights; and (h) technology.  Notwithstanding the foregoing, “Released Intellectual Property” shall not include any Accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the foregoing.

 

“Representations” means the written Representations and Warranties previously delivered by Borrower to ORIX dated March 9, 2007.

 

“Reserves” means, as of any date of determination, such amounts as ORIX may from time to time establish and revise in its good faith business judgment, reducing the amount of Revolving Loans, and other financial accommodations which would otherwise be available to Borrower under the lending formulas provided in the Schedule: (a) to reflect events, conditions, contingencies or risks which, as determined by ORIX in its good faith business judgment, do or may adversely affect (i) the Collateral or any other property which is security for the

 

 

Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets, business or prospects of Borrower or any guarantor, or (iii) the security interests and other rights of ORIX in the Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect ORIX’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrower or any guarantor to ORIX is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts which ORIX determines in good faith constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default.

 

“Traq Acquisition” is the acquisition of Traq Wireless, Inc. by Tangoe, Inc.

 

“Warrant” means the warrant to purchase stock of the Borrower being issued to ORIX, and all extensions and renewals thereof and replacements therefor.

 

Other Terms.  All accounting terms used in this Agreement, unless otherwise indicated, shall have the meanings given to such terms in accordance with GAAP.  All other terms contained in this Agreement, unless otherwise indicated, shall have the meanings provided by the Code, to the extent such terms are defined therein.

 

9.  GENERAL PROVISIONS.

 

9.1  Payments.  All payments with respect to the Obligations shall be made to ORIX by wire transfer in accordance with written instructions from ORIX.  Payments may be applied and reversed and re-applied, to the Obligations, in such order and manner as ORIX shall determine in its good faith business judgment.

 

9.2  Charges to Accounts.  ORIX may, in its discretion, require that Borrower pay monetary Obligations in cash to ORIX, or charge them to Borrower’s Revolving Loan account, in which event they will bear interest at the same rate applicable to the Revolving Loans.

 

9.3  Confidentiality.  ORIX agrees to use the same degree of care that it exercises with respect to its own proprietary information, to maintain the confidentiality of any and all proprietary, trade secret or confidential information provided to or received by ORIX from the Borrower, which indicates that it is confidential, including business plans and forecasts, non-public financial information, confidential or secret processes, formulae, devices and contractual information, customer lists, and employee relation matters, provided that ORIX may disclose such information to its officers, directors, employees, attorneys, accountants, affiliates, participants, prospective participants, assignees and prospective assignees, and such other Persons to whom ORIX shall at any time be required to make such disclosure in accordance with applicable law, and provided, that the foregoing provisions shall not apply to disclosures made by ORIX in its good faith business judgment in connection with the enforcement of its rights or remedies after an Event of Default.  The confidentiality agreement in this Section supersedes any prior confidentiality agreement of ORIX relating to Borrower.

 

9.4  Additional Lender.  ORIX, at its option, may designate another institutional lender to replace ORIX in providing all or a portion of the Loans (the “Additional Lender”), and Borrower shall cooperate with the same.  In connection with the Additional Lender replacing ORIX as the lender of all or a portion of the Loans, this Agreement and the other Loan Documents shall, at the sole election of ORIX, be split or divided into two loan and security agreements, each of which shall cover all or a portion of the Collateral, as designated by ORIX.  To that end, Borrower, upon written request of ORIX, shall execute, acknowledge and deliver to ORIX and/or its designee or designees substitute loan agreements, security instruments and security agreements in such principal amounts, containing terms, provisions and clauses substantially identical to those contained in this Agreement and such other documents and instruments (subject to the provisions hereof), in favor of the Additional Lender (the “Additional Lender Documents”) and appropriate amendments to this Loan Agreement and the other Loan Documents (including without limitation an intercreditor agreement between ORIX and the Additional Lender), all as may be reasonably required by ORIX.  Without limiting the foregoing, the Additional Lender Documents and the amendment to this Loan Agreement, shall provide that an Event of Default under the Additional Lender Documents constitute an Event of Default under the Loan Documents, and vice versa.

 

9.5  Notices.  All notices to be given under this Agreement shall be in writing and shall be given either personally or by reputable private delivery service or by regular first-class mail, or certified mail return receipt requested, addressed as follows: (a) if to Borrower, at its address shown in the heading to this Agreement; and (b) if to ORIX, at ORIX Venture Finance LLC, 245 Park Avenue, 19th Floor, New York, NY 10167, Attention: Ms. Carol Nicholas, with a copy to ORIX USA Corporation, 1717 Main Street, Suite 900, Dallas, Texas 75201, Attention: Mr. Robert Lenhardt, and with an additional copy to Riemer & Braunstein LLP, Three Center Plaza, Boston, Massachusetts 02108, Attention: David A. Ephraim, Esquire.  The parties hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to all other parties.  All notices shall be deemed to have been given upon delivery in the case of notices personally delivered, or at the expiration of one Business Day following delivery to the private delivery service, or two Business Days following the deposit thereof in the United States mail, with postage prepaid.

 

9.6  Attorneys Fees and Costs.  Borrower shall reimburse ORIX for all reasonable attorneys’ fees and all filing, recording, search, title insurance, appraisal, audit, and other reasonable costs incurred by ORIX, pursuant to, or in connection with, or relating to this Agreement 

 

 

(whether or not a lawsuit is filed), including, but not limited to, out of pocket costs and expenses in connection with any board of directors meeting observation rights provided to ORIX under this Agreement, all reasonable attorneys’ fees and costs ORIX incurs hi order to do the following: prepare and negotiate this Agreement and the documents relating to this Agreement; obtain legal advice in connection with this Agreement or Borrower; enforce, or seek to enforce, any of its rights; prosecute actions against, or defend actions by, Account Debtors; commence, intervene in, or defend any action or proceeding; initiate any complaint to be relieved of the automatic stay in bankruptcy; file or prosecute any probate claim, bankruptcy claim, third-party claim, or other claim; protect, obtain possession of, lease, dispose of, or otherwise enforce ORIX’s security interest in, the Collateral; represent ORIX in connection with any sale by ORIX of the Loan or any interest or participation in the Loan, including without limitation the preparation and negotiation of documentation relating to the same; and otherwise represent ORIX in any litigation relating to Borrower.  If either ORIX or Borrower files any lawsuit against the other predicated on a breach of this Agreement, the prevailing party in such action shall be entitled to recover its reasonable costs and attorneys’ fees, including (but not limited to) reasonable attorneys’ fees and costs incurred in the enforcement of, execution upon or defense of any order, decree, award or judgment.

 

9.7  Public Announcement.  Borrower hereby agrees that ORIX may make a public announcement of the transactions contemplated by this Agreement, and may publicize the same in marketing materials, newspapers and other publications, and otherwise, and in connection therewith may use the Borrower’s name, tradenames and logos.

 

9.8  Waivers.  The failure of ORIX at any time or tunes to require Borrower to strictly comply with any of the provisions of this Agreement or any other present or future agreement between Borrower and ORIX shall not waive or diminish any right of ORIX later to demand and receive strict compliance therewith.  Any waiver of any default shall not waive or affect any other default, whether prior or subsequent, and whether or not similar.  None of the provisions of this Agreement or any other agreement now or in the future executed by Borrower and delivered to ORIX shall be deemed to have been waived by any act or knowledge of ORIX or its agents or employees, but only by a specific written waiver signed by an authorized officer of ORIX and delivered to Borrower.  Borrower waives the benefit of all statutes of limitations relating to any of the Obligations or this Agreement or any other Loan Document, and Borrower waives demand, protest, notice of protest and notice of default or dishonor, notice of payment and nonpayment, release, compromise, settlement, extension or renewal of any commercial paper, instrument, account, Account, General Intangible, document or guaranty at any time held by ORIX on which Borrower is or may in any way be liable, and notice of any action taken by ORIX, unless expressly required by this Agreement.  NEITHER ORIX NOR ITS PARENT, NOR ANY OF ITS AFFILIATES, SUBSIDIARIES, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR ATTORNEYS SHALL BE RESPONSIBLE OR LIABLE TO BORROWER OR TO ANY OTHER PARTY FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF ANY FINANCIAL ACCOMMODATION HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER.

 

9.9  General.  The provisions of this Agreement shall be binding upon and inure to the benefit of the respective successors, assigns, heirs, beneficiaries and representatives of Borrower and ORIX; provided, however, that Borrower may not assign or transfer any of its rights under this Agreement without the prior written consent of ORIX, and any prohibited assignment shall be void.  No consent by ORIX to any assignment shall release Borrower from its liability for the Obligations.  If Borrower consists of more than one Person, their liability shall be joint and several, and the compromise of any claim with, or the release of, any Borrower shall not constitute a compromise with, or a release of, any other Borrower.  This Agreement and all acts, transactions disputes and controversies arising hereunder or relating hereto, and all rights and obligations of ORIX and Borrower shall be governed by, and construed in accordance with the internal laws (and not the conflict of laws rules) of the State of New York.  Borrower (i) agrees that all actions and proceedings relating directly or indirectly to this Agreement shall, at ORIX’s option, be litigated in courts located within New York, and that the exclusive venue therefor shall be the Borough of Manhattan, New York County; (ii) consents to the jurisdiction and venue of any such court and consents to service of process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and all rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of any such action or proceeding.  Paragraph headings are only used in this Agreement for convenience, and shall not be used in any manner to construe, limit, define or interpret any term or provision of this Agreement.  The term “including”, whenever used in this Agreement, shall mean “including (but not limited to)”.  This Agreement has been fully reviewed and negotiated between the parties and no uncertainty or ambiguity in any term or provision of this Agreement shall be construed strictly against ORIX or Borrower under any rule of construction or otherwise.  Should any provision of this Agreement be held by any court of competent jurisdiction to be void or unenforceable, such defect shall not affect the remainder of this Agreement, which shall continue in full force and effect.  This Agreement may be executed and delivered by the signing and delivery of this Agreement with original signatures or by facsimile copy.  This Agreement and such other written agreements, documents and instruments as may be executed in connection herewith, including without limitation the Representations, are the final, entire and complete agreement between Borrower and ORIX and supersede all prior and 

 

 

contemporaneous negotiations and oral representations and agreements, all of which are merged and integrated in this Agreement.  There are no oral understandings, representations or agreements between the parties which are not set forth in this Agreement or in other written agreements signed by the parties in connection herewith.  The terms and provisions of this Agreement may not be waived or amended, except in a writing executed by Borrower and a duly authorized officer of ORIX.  Time is of the essence in the performance by Borrower of each and every obligation under this Agreement.

 

9.10  Mutual Waiver of Jury Trial.  BORROWER AND ORIX EACH HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN ORIX AND BORROWER, OR ANY CONDUCT, ACTS OR OMISSIONS OF ORIX OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH ORIX OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.

 

 

	
Borrower:
    	
 
    
	
 
    	
 
    
	
 
    	
Tangoe, Inc.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
President or Vice   President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
Secretary or Ass’t   Secretary
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Traq Wireless, Inc.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
President of Vice   President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
Secretary or Ass’t   Secretary
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ORIX:
    	
 
    
	
 
    	
 
    
	
 
    	
ORIX Venture Finance LLC, a Delaware limited liability company
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BY
    	
/s/ Kevin P. Sheehan
    	
 
    
	
 
    	
Kevin P. Sheehan,
    	
 
    
	
 
    	
President and CEO
    	
 
    

 

 

Schedule to
 Loan and Security Agreement

 

	
Borrowers:
    	
(1) Tangoe, Inc., a Delaware   corporation located at 35 Executive Boulevard, Orange, CT 06477
    
	
 
    	
 
    
	
 
    	
(2) Traq Wireless, Inc., a   Delaware corporation located at 35 Executive Boulevard, Orange, CT 06477
    

 

Date:                      March 9, 2007

 

This Schedule is an integral part of the Loan and Security Agreement between ORIX Venture Finance LLC, a Delaware limited liability company (“ORIX”) and the above-borrower (“Borrower”) of even date.

 

1.  LOAN AMOUNT (Section 1.1):  Term Loan = $2,500,000.00

 

Revolving Loans = $5,000,000.00 (subject to limitations below)

 

The Loans shall consist of a Term Loan (the “Term Loan”) and Revolving Loans (the “Revolving Loans”) as follows. (“Loans” as used in this Agreement means, collectively, the Term Loan and the Revolving Loans.)

 

(a)  Term Loan.

 

(1)           Disbursement of Term Loan.

 

The Term Loan shall be in the original principal  amount of $2,500,000.00, and, subject to the terms and conditions in this Agreement, shall be disbursed to Borrower, in one disbursement, within two Business Days after the date hereof.

 

 

(2)           Principal Payments. The principal of the Term Loan shall be repaid in 36 equal monthly principal payments of $69,444.44 each, commencing on March 1, 2008 and continuing on the first calendar day of each month thereafter until February 1, 2011 (the “Term Loan Maturity Date”), on which date the entire unpaid principal balance of the Term Loan and all accrued and unpaid interest thereon shall be due and payable.

 

(3)           Interest Payments.  Commencing on the date on which the Term Loan is made, accrued interest on the Term Loan shall be paid monthly as provided in Section 1.3 of this Loan Agreement.

 

(b)         Revolving Loans.

 

(1)           Amount.  The Revolving loans shall be in an amount up to the lesser of the following (the “Revolving Loan Limit”): (i) $5,000,000.00 (the “Revolving Loan Dollar Limit”) or (ii) 85% of the amount of Borrower’s Eligible Accounts (as defined  in  Section  8  above)  (the  “Advance Rate”),  subject  to  Reserves  (as  defined  in Section 8 above). If for any reason, at any time, the outstanding principal balance of the Revolving Loans exceeds the Revolving Loan Limit, Borrower shall immediately repay the excess to ORIX without notice or demand.

 

(2)           Advance Rate. ORIX may, from time to time, modify the Advance Rate, in its good faith business judgment, upon notice to the Borrower, based on changes in collection experience with respect to Accounts or other issues or factors relating to the Accounts or other Collateral.

 

(3)           Disbursement Requests.  Requests by Borrower for disbursements of Revolving Loans shall be made in writing by Borrower to ORIX at least three Business Days prior to the date the requested disbursement is to be made.

 

(4)           Revolving Loan Maturity Date. Notwithstanding anything to the contrary in this Agreement, Revolving Loans may be borrowed, repaid and re-borrowed, until March 9, 2009 (the “Revolving 

 

 

Loan Maturity Date”) on which date the entire unpaid principal balance of the Revolving Loans and all accrued and unpaid interest thereon shall be due and payable. After the Revolving Loan Maturity Date, no further Revolving Loans shall be made.

 

	
2. INTEREST.

 

Interest   Rate
    (Section 1.3):
    	
 
    	

    
   The Term Loan shall bear interest at an interest rate equal to the Prime Rate   in effect from time to time, plus 2.5% per annum.
    
   The Revolving Loans shall bear interest at an interest rate equal to the   Prime Rate in effect from time to time, plus 1.0% per annum.
    
   Interest shall be calculated on the basis of a 360-day year for the actual   number of days elapsed. Prime Rate has the meaning set forth in   Section 8 of this Agreement.
    
	
 
    	
 
    	
 
    
	
3. FEES (Section 1.4):

 

Loan Fee:
    	
 
    	

    
   $37,500.00, due and   payable concurrently herewith.
    
	
 
    	
 
    	
 
    
	
4. MATURITY DATE
    (Section 6.1):
    	
 
    	

   With respect to the Term Loan, the Term Loan Maturity Date (as defined in   Section 1 of this Schedule).
    
   With respect to the Revolving Loans, the Revolving Loan Maturity Date (as   defined in Section 1 of this Schedule).
    
	
 
    	
 
    	
 
    
	
5.   REPORTING
    (Section 4.2):
    	
 
    	
Borrower, at its expense,   shall provide ORIX with the following:

(a)  Monthly   reconciliations of accounts receivable agings (aged by invoice date) and   borrowing base report, within thirty days after the end of each month;

(b) Monthly   accounts payable agings, aged by invoice date, if any, within thirty days   after the end of each month;

(c)  Monthly   financial statements within thirty days after the end of each month;
    

 

 

	
 
    	
 
    	
(d) Annual,   unqualified financial statements, audited by independent certified public   accountants acceptable to ORIX (provided that, as of the date of this   Agreement, Borrower’s certified public accounting firm is Deloitte &   Touche USA, LLC, which is acceptable to ORIX), within one hundred fifty days   after the end of each fiscal year of Borrower;

(e)  Compliance   certificates within fifteen days after the end of each month, confirming that   no Defaults have occurred, at such intervals and times as ORIX shall specify;   

(f)  Within five   (5) days of ORIX’s request, transaction reports, general ledger, and   outstanding or held check registers; and

(g) budgets,   sales projections, operating plans or other financial information reasonably   requested by ORIX.
    
	
 
    	
 
    	
 
    
	
6. FINANCIAL COVENANTS.
    (Section 4.8):
    	
 
    	
 
    
	
 
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
7. ADDITIONAL PROVISIONS.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)   Warrants. Borrower   shall concurrently issue to ORIX seven-year warrants to purchase 168,919   shares of Series E Convertible Preferred Stock of Borrower at a purchase   price of $0.74 per share, on the terms set forth in ORIX’s standard form   Warrant to Purchase Stock.

(b)   Deposit Accounts. By no later than   forty-five (45) days after the Closing Date, Borrower shall cause the banks   and other institutions where its Deposit Accounts are maintained to enter   into control agreements with ORIX, in form and substance satisfactory to ORIX   in its good faith business judgment and sufficient to perfect ORIX’s   first-priority security interest in said Deposit Accounts.

(c)   Landlord’s Consent. By no later than thirty   (30) days after the Closing Date, Tangoe, Inc. shall deliver to ORIX a   fully-executed landlord’s consent, in form and substance satisfactory to ORIX   in its good faith business judgment, with respect to Tangoe, Inc.’s   location at 35 Executive Boulevard, Orange, CT 06477.
    

 

 

	
Borrower:
    	
 
    	
ORIX:
    
	
 
    	
 
    	
 
    
	
Tangoe, Inc.
    	
 
    	
ORIX Venture Finance LLC, a Delaware limited liability company
    
	
By
    	
/s/ Albert R. Subbloie
    	
 
    	
 
    	
 
    
	
President or Vice President
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin P. Sheehan
    
	
By
    	
/s/ Gary R. Martino
    	
 
    	
 
    	
Kevin P. Sheehan
    
	
Secretary or Ass’t Secretary
    	
 
    	
 
    	
President and CEO
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Traq Wireless, Inc.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Albert R. Subbloie
    	
 
    	
 
    	
 
    
	
President or Vice President
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By
    	
/s/ Gary R. Martino
    	
 
    	
 
    	
 
    
	
Secretary or Ass’t Secretary
    	
 
    	
 
    	
 
    

 

 

Limited Consent and First Amendment
 to Loan and Security Agreement

 

	
Borrowers:
    	
(1) Tangoe, Inc.
    
	
 
    	
(2) Traq Wireless, Inc.
    
	
 
    	
 
    
	
Date:
    	
July 28, 2008
    

 

This LIMITED CONSENT AND FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of the date set forth above by and among ORIX VENTURE FINANCE LLC, a Delaware limited liability company (“ORIX”), and TANGOE, INC., a Delaware corporation (“Tangoe”), and TRAQ WIRELESS, INC., a Delaware corporation (“Traq” and Tangoe hereinafter, jointly and severally, individually and collectively, “Borrower”).

 

RECITALS:

 

WHEREAS, Borrower and ORIX are parties to that certain Loan and Security Agreement dated as of March 9, 2007 (as from time to time amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which ORIX has agreed to make loans and other extensions of credit to Borrower in accordance with the terms thereof;

 

WHEREAS, Tangoe, Information Strategies Group, a New Jersey corporation (“ISG”) and BillingIT.com, Inc., a New York corporation (“BillingIT” and ISG hereinafter, jointly and severally, individually and collectively, “Seller”), are party to a certain Asset Purchase Agreement, dated as of July 2, 2008 (“Asset Purchase Agreement”), pursuant to which Tangoe has agreed to purchase certain assets from Seller on the terms and conditions set forth in the Asset Purchase Agreement (the “Acquisition”);

 

WHEREAS, in connection with the foregoing, Borrower has requested that ORIX consent to the consummation of the Acquisition and agree to amend the Loan Agreement as provided herein;

 

 

WHEREAS, ORIX has agreed to consent to the Acquisition and amend the Loan Agreement on the terms and subject to the conditions set forth herein

 

WHEREAS, in connection with the foregoing, Tangoe shall issue to ORIX Finance Equity Investors, LP warrants to purchase 850,000 shares of Tangoe’s Series F Convertible Preferred Stock, $.0001 par value, in accordance with a certain Warrant to Purchase Stock, dated as of the date hereof, in the form of Exhibit A attached hereto (the “Warrant”); and

 

WHEREAS, this Amendment shall constitute a Loan Document and capitalized terms used but not otherwise defined in this Amendment shall have the meanings described to them in the Loan Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1                                               Consents.  In reliance upon the representations and warranties made by Borrower set forth in Section 3 below and subject to the prior satisfaction of the conditions to effectiveness set forth in Section 4 below, ORIX hereby consents to (i) the consummation of the Acquisition in accordance with the terms of the Asset Purchase Agreement, delivered pursuant to Section 4(e) hereof and acknowledges that the consummation of the Acquisition in accordance with the terms of the Asset Purchase Agreement, delivered pursuant to Section 4(e) hereof, shall not constitute a Default under Sections 4.5(ii) and 4.5(xiii) of the Loan Agreement, and (ii) the Borrower repurchasing its capital stock, on the effective date of this Amendment, from certain stockholders, other than from Edison Venture Fund IV, L.P., Edison Venture Fund IV SBIC, L.P., Sevin Rosen Fund VI, L.P., Sevin Rosen VI Affiliates Fund L.P., Sevin Rosen Bayless Management Company, Sevin Rosen Fund VIII, L.P., Sevin Rosen VIII Affiliates Fund, L.P., Investor Growth Capital Limited, Investor Group, L.P., North Atlantic Venture Fund III and North Atlantic SBIC IV, L.P. (the “Stock Repurchase”), for an aggregate purchase price of not more than $5,000,000 and a share price of not more than $1.06 per share, in accordance with the terms of a Stock Repurchase Agreement, substantially in the form of Exhibit B attached hereto (the “Repurchase Agreement”), and acknowledges that the consummation of the Stock Repurchase in accordance with the terms of the Repurchase Agreement, shall not constitute a Default under Sections 4.5(ix) or 4.5(xiii) of the Loan Agreement.  For purposes hereof, the parties hereto hereby acknowledge and agree that the consent provided herein is a limited consent and shall not constitute a consent to any other agreement or matter or a waiver of any other provision of the Loan Agreement or any other Loan Document.

 

Section 2                                               Amendment to Loan Agreement.

 

(a)                                  Sections 1 (Loan Amount), 2 (Interest) and 6 (Financial Covenants) of the Schedule are hereby deleted in their entirety and replaced with Section 1, 2 and 6 as set forth on Exhibit C attached hereto.

 

(b)                                 Section 2.1 of the Loan Agreement is hereby amended by adding the following text at the end thereof:

 

 

“Notwithstanding the foregoing, upon the occurrence of (i) the Borrower entering into a substitute working capital revolving facility, with an entity other than ORIX (the “Replacement Lender”), which facility (a) shall not, without the prior written consent of ORIX, exceed the principal amount of $10,000,000 (the “Replacement Loan Limit”), and (b) shall expressly provide, unless otherwise consented to in writing by ORIX, that the maximum amount available for all outstanding borrowings and other financial accommodations thereunder, shall not exceed the lesser of (1) the Replacement Loan Limit and (2) 80% of Borrower’s “eligible accounts” (with the term “eligible accounts” having the exact same definition as the term Eligible Accounts has in this Agreement on the effective date of the Limited Consent and First Amendment), (ii) the repayment in cash and in full of all principal and accrued and unpaid interest on all outstanding Revolving Loans, and (iii) the irrevocable termination of ORIX’s commitment to make Revolving Loans under this Agreement, ORIX shall subordinate its security interest in the portion of the Collateral consisting solely of cash, account receivables and Inventory, to the security interest of the Replacement Lender in such assets, pursuant to the terms of an intercreditor agreement between ORIX and the Replacement Lender, in form and substance satisfactory to ORIX.

 

Section 3                                               Representations and Warranties.  To induce ORIX to enter into this Amendment, Borrower represents and warrants that:

 

(a)                                  No Default.  After giving effect to this Amendment and the Acquisition, no Default or Event of Default shall have occurred to be continuing as of the date hereof;

 

(b)                                 Representations and Warranties.  All representations and warranties by (i) Borrower contained in the Loan Agreement, and (ii) Tangoe contained in the Asset Purchase Agreement, are true, accurate and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date;

 

(c)                                  Corporate Authority.  (i) The execution, delivery and performance by Borrower of this Amendment, the Warrant and the Asset Purchase Agreement are within its corporate powers and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) this Amendment and the Warrant are the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their terms and (iii) neither the execution, delivery or performance by Borrower of this Amendment, the Warrant or the Asset Purchase Agreement (1) violates any law or regulation, or any other or decree of any governmental authority, (2) conflicts with or results in the breach or termination of, constitutes a default under or accelerates any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which Borrower is a party or by which Borrower or any of its property is bound, (3) results in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral, (4) violates or conflicts with the articles of incorporation or bylaws of Borrower, or (5) requires the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; and

 

 

(d)                                 Event of Default.  By its signature below, Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in any material respect as of the date when made or deemed made.

 

Section 4                                               Conditions Precedent.  The effectiveness of this Amendment, and the obligation of ORIX to make any Loans, is subject to the following conditions precedent:

 

(a)                                  Amendment.  ORIX shall have received a true and complete copy of this Amendment, duly executed by Borrower.

 

(b)                                 Warrant.  ORIX shall have received a true and complete copy of the Warrant, duly executed by Borrower.

 

(c)                                  Representation and Warranties.  ORIX shall have received a true and complete copy of Representation and Warranties signed by Borrower, in form and substance satisfactory to ORIX.

 

(d)                                 Solvency Certificate.  ORIX shall have received a certificate, duly executed by the Chief Financial Officer of Borrower, dated as of the date hereof, as to the solvency of Borrower and its subsidiary following the consummation of the transactions contemplated hereunder and under the Asset Purchase Agreement, in form and substance satisfactory to ORIX.

 

(e)                                  Asset Purchase Agreement.  ORIX shall have received a true and complete copy of the Asset Purchase Agreement, together with true and complete copies of all exhibits and schedules thereto, each in form and substance reasonably satisfactory to ORIX, duly executed and delivered by each of the parties thereto.

 

(f)                                    Conditions to Asset Purchase Agreement.  Each of the conditions precedent set forth in Sections 6 and 7 of the Asset Purchase Agreement shall have been satisfied or waived.

 

(g)                                 Acquisition.  Tangoe and Seller shall have satisfied all terms and conditions to the Acquisition in accordance with the terms and conditions of the Asset Purchase Agreement (with the sole exception of delivering the cash portion of the Purchase Price, as such term is defined in the Asset Purchase Agreement), as in effect on the date hereof, without waiver, modification, or delay in the performance thereof.

 

(h)                                 Equity Investment.  ORIX shall have received evidence, in form and substance satisfactory to ORIX, that a cash equity investment has been made in Borrower, on or about the date hereof, in an amount not less than $12,000,000.

 

(i)                                     Secretary’s Certificates.  ORIX shall have received a certificate from each Borrower, executed by Borrower’s corporate secretary or an assistant secretary, dated as of the date hereof (i) attaching resolutions of Borrower’s Board of Directors, approving and authorizing the execution, delivery and performance of the Amendment, the Warrant, the Asset Purchase Agreement and the transactions to be consummated in connection therewith, which certificate shall be in form and substance satisfactory to ORIX and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded, (ii) attaching certified copies of Borrower’s organizational documents, certificate of good standing, and foreign qualifications, and 

 

 

(ii) stating that (A) all of the representations and warranties of Borrower contained in the Loan Documents and the Asset Purchase Agreement are true and correct in all material respects as of such date, and (B) no event has occurred and is continuing, which constitutes an Event of Default.

 

(j)                                     Flow of Funds Memo.  ORIX shall have received a true and complete copy of a certain letter agreement, in the form attached as Exhibit D hereto, duly executed by all the parties thereto.

 

(k)                                  Legal Opinion.  ORIX shall have received an opinion of Shipman & Goodwin LLP, counsel to each Borrower, in form and substance satisfactory to ORIX.

 

(l)                                     Payoff of Existing Term Loan.  Borrower shall have repaid in full all principal and accrued interest outstanding on the Term Loan with proceeds from the advance hereunder.

 

(m)                               Upfront Fee.  Borrower shall have paid ORIX an upfront fee in the amount of $71,250, which fee shall be deemed fully earned and non-refandable upon receipt thereof.

 

(n)                                 Cost and Expenses.  Borrower shall have reimbursed ORIX for all out-of-pocket costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by ORIX in connection with this Amendment, the Warrant and the Asset Purchase Agreement.  ORIX hereby acknowledges its receipt of $40,000 from Borrower, which shall be credited by ORIX, to the extent available, first against the out-of-pocket costs and expenses due in accordance with this Section 4(n) and second against the upfront fee due in accordance with Section 4(m) above.

 

(o)                                 No Default.  No Default or Event of Default under the Loan Agreement, as amended hereby, or the Asset Purchase Agreement, shall have occurred and be continuing.

 

(p)                                 Warranties and Representations.  After giving effect to this Amendment, the Acquisition and the transactions contemplated hereby and thereby, the warranties and representations of Borrower contained in the Loan Documents shall be true and correct as of the effective date hereof, with the same effect as though made on such date, except to the extent that such warranties and representations expressly relate to an earlier date, and all of such representations and warranties (except those relating to an earlier date) are hereby remade by Borrower as of the date hereof.

 

(q)                                 Material Adverse Change.  ORIX shall have determined, in its sole discretion, that there is no Material Adverse Change (financial or otherwise).

 

(r)                                    Other Requirements.  ORIX shall have received such other documentation and information which it shall have requested pursuant to this Amendment.

 

Section 5                                               Reference to and Effect on Loan Documents.

 

(a)                                  Ratification.  Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of 

 

 

the Loan Agreement or any other Loan Document.  Borrower hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

 

(b)                                 Intellectual Property Security Agreements.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of the Intellectual Property Security Agreement, dated as of March 9, 2007, between Borrower and ORIX (the “IP Agreement”), and acknowledges, confirms and agrees that the IP Agreement contains an accurate and complete listing of all Intellectual Property and shall remain in full force and effect.

 

(c)                                  Representations.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Representations, and acknowledges, confirms and agrees the disclosures and information Borrower provided to ORIX in the Representations have not changed, as of the date hereof.

 

(d)                                 No Waiver.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of ORIX under the Loan Agreement or any of the other Loan Documents, other than to the extent expressly set forth herein or previously waived in writing.

 

(e)                                  References.  Upon the effectiveness of this Amendment each reference in (a) the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import and (b) any other Loan Document to “the Agreement” or “the Loan Agreement” shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Loan Agreement as amended hereto.

 

 

Section 6                                               Releases.  In further consideration of ORIX’s execution of this Amendment, Borrower for itself and on behalf of its respective successors (including, without limitation, any trustees acting on behalf of Borrower and any debtor-in-possession with respect to Borrower), assigns, subsidiaries and affiliates, hereby forever releases ORIX and then-respective successors, assigns, parents, subsidiaries, affiliates, officers, employees directors, agents and attorneys (collectively, the “Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”), that Borrower may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take prior to the date this Amendment was executed with respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations, other than arising out of such Releasee’s gross negligence or willful misconduct, as finally determined by a non-appealable court of competent jurisdiction.  This provision shall survive and continue in full force and effect whether or not Borrower shall satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement including payment in full of all Obligations.

 

Section 7                                               Miscellaneous.

 

(a)                                  Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Borrower and ORIX and their respective successors and assigns.

 

(b)                                 ENTIRE AGREEMENT.  THIS AMENDMENT REPRESENTS THE ENTIRE, FINAL AGREEMENT AND UNDERSTANDING CONCERNING THE SUBJECT MATTER HEREOF BETWEEN THE PARTIES HERETO, AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS, UNDERSTANDINGS, NEGOTIATIONS AND DISCUSSIONS, REPRESENTATIONS, WARRANTIES, COMMITMENTS, PROPOSALS, OFFERS AND CONTRACTS CONCERNING THE SUBJECT MATTER HEREOF, WHETHER ORAL OR WRITTEN.  THIS AMENDMENT, ANY SUPPLEMENTS HERETO, AND ANY INSTRUMENTS OR DOCUMENTS DELIVERED OR TO BE DELIVERED IN CONNECTION HEREWITH MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

(c)                                  Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)                                 Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

 

(e)                                  Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(f)                                    Incorporation of Loan Agreement Provisions.  The provisions contained in Section 9.9  (Governing Law) and Section 9.10 (Jury Waiver) of the Loan Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

[Signatures follow]

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed on the date first written above.

 

Borrower

 

	
TANGOE, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
President or Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
Secretary or Assistant Secretary
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TRAQ WIRELESS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
President or Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
Secretary or Assistant Secretary
    	
 
    

 

 

ORIX:

 

	
ORIX VENTURE FINANCE LLC
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ Kevin P. Sheehan
    	
 
    
	
 
    	
Kevin P. Sheehan,
    	
 
    
	
 
    	
President and CEO
    	
 
    

 

[Signature page to Limited Consent and First Amendment]

 

 

EXHIBIT A

 

Warrant

 

[See attached]

 

 

EXECUTION COPY

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR OTHERWISE IN ACCORDANCE WITH APPLICABLE LAW.

 

WARRANT TO PURCHASE STOCK

 

	
Company:
    	
Tangoe, Inc., a   Delaware corporation
    
	
Number of Shares:
    	
850,000, subject to adjustment
    
	
Class of Stock:
    	
Series F Convertible Preferred Stock, $.0001 par value
    
	
Initial Exercise Price:
    	
$1.1776 per share, subject to adjustment
    
	
Issue Date:
    	
July 28, 2008
    
	
Expiration Date:
    	
July 28, 2015
    

 

THIS WARRANT CERTIFIES THAT, for value received, receipt of which is hereby acknowledged, ORIX Venture Finance LLC (“Holder”) is entitled to purchase the number of fully paid and nonassessable shares of the Class of Stock (the “Shares”) of Tangoe, Inc., a Delaware corporation (the “Company”), having a principal place of business located at 35 Executive Boulevard, Orange, Connecticut 06477, at the initial exercise price per Share (the “Warrant Price”) set forth above, as constituted on the date hereof and as adjusted pursuant to the other terms of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant.  This Warrant is being issued pursuant to a First Amendment to Loan and Security Agreement between the Company and Holder dated as of July 28, 2008 (the “Loan Agreement”) (Capitalized terms used herein, which are not defined, shall have the meanings set forth in the Loan Agreement.)

 

ARTICLE 1.                                SHARES; EXERCISE.

 

1.1                                 Number of Shares.  The number of Shares initially subject to this Warrant shall initially be the number of Shares set forth above.

 

1.2                                 Method of Exercise.  Holder may exercise this Warrant by delivering (including a facsimile transmission) a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company.  Unless Holder is exercising the conversion right set forth in Section 1.3, Holder shall also deliver to the Company the aggregate Warrant Price for the Shares being purchased (i) by wire transfer or by check, or (ii) by notice of cancellation of indebtedness of the Company to Holder, or (iii) a combination of (i) or (ii).

 

1.3                                 Conversion Right.  In lieu of exercising this Warrant as specified in Section 1.2, Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares or other securities otherwise issuable upon the proposed whole or partial exercise of this Warrant minus the 

 

 

aggregate Warrant Price of such Shares by (b) the fair market value of one Share.  The fair market value of the Shares shall be determined pursuant to Section 1.6 below.

 

1.4                                 Effective Date of Exercise.  This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above.  The person entitled to receive the Shares issuable upon exercise of this Warrant shall be treated for all purposes as the holder of record of such shares as of the close of business on the date the Holder is deemed to have exercised this Warrant.

 

1.5                                 No Rights of Shareholder. This Warrant does not entitle Holder to any voting rights as a shareholder of the Company prior to the exercise hereof.  Upon exercise hereof, as set forth herein, the Holder shall be deemed to be a shareholder of the Company holding the number of shares as to which this Warrant has been exercised on the date the Notice of Exercise in substantially the form attached as Appendix 1 has been delivered to the principal office of the Company with any payment or other documents called for by the terms hereof.

 

1.6                                 Fair Market Value.  If the Shares are traded in a public market, the fair market value of the Shares shall be the closing price of the Shares (or the closing price of the Company’s stock into which the Shares are convertible) reported for the business day immediately before Holder delivers its Notice of Exercise to the Company.  If the Shares are not traded in a public market, the Board of Directors of the Company shall determine fair market value in its reasonable good faith judgment.  The foregoing notwithstanding, if Holder advises the Board of Directors in writing that Holder disagrees with such determination, then the Company and Holder shall promptly agree upon a reputable investment banking firm to undertake such valuation.  If the Company and Holder are unable to agree on such investment banking firm, then the Holder shall select three reputable investment banking firms, and from those three firms the Company shall select one to undertake such valuation.  If the valuation of such investment banking firm is greater than that determined by the Board of Directors, then all fees and expenses of such investment banking firm shall be paid by the Company.  In all other circumstances, such fees and expenses shall be paid by Holder.

 

1.7                                 Delivery of Certificate and New Warrant.  Promptly after Holder exercises or converts this Warrant, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised or converted and has not expired, a new Warrant representing the Shares not so acquired shall be delivered to Holder.

 

1.8                                 Replacement of Warrants.  On receipt of an affidavit of an officer of the Holder of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

 

1.9                                 Acquisition of the Company.  Upon the closing of any Acquisition the successor entity shall assume the obligations of this Warrant, and this Warrant shall be exercisable for the same securities, cash, and property as would be payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for 

 

 

the Acquisition and subsequent closing.  The Warrant Price shall be adjusted accordingly.  As used herein, “Acquisition” means any sale, license, or other disposition of all or substantially all of the assets of the Company, or any reorganization, sale of stock, consolidation, or merger of the Company in which the holders of the Company’s voting securities before the transaction (for such purpose treating all outstanding options and warrants to purchase voting securities of the Company as having been exercised and treating all outstanding debt and equity securities convertible into voting securities of the Company as having been converted) beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction.

 

1.10                           Automatic Exercise Prior to Expiration.  To the extent this Warrant is not previously exercised as to all of the Shares subject hereto, and if the fair market value of one Share is greater than the Warrant Price then in effect, this Warrant shall be deemed automatically exercised pursuant to Section 1.3 above (even if not surrendered) immediately before its expiration date as set forth in this Warrant.  For purposes of such automatic exercise, the fair market value of one Share upon such expiration shall be determined pursuant to Section 1.6 above.  To the extent this Warrant or any portion thereof is deemed automatically exercised pursuant to this Section, the Company agrees to promptly notify the holder hereof of the number of Shares, if any, the holder hereof is to receive by reason of such automatic exercise.

 

ARTICLE 2.                                ADJUSTMENTS TO THE SHARES.

 

2.1                                 Stock Dividends, Splits, Etc.  If the Company declares or pays a dividend on its Stock payable in Common Stock or other securities, or subdivides the outstanding Stock into a greater amount of Stock, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred.

 

2.2                                 Reclassification, Exchange or Substitution.  Upon any reclassification, exchange, substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised immediately before such reclassification, exchange, substitution, or other event.  Such an event shall include any automatic conversion of the outstanding or issuable securities of the Company of the same class or series as the Shares to Common Stock pursuant to the terms of the Company’s Articles or Certificate of Incorporation upon the closing of a registered public offering of the Company’s Common Stock.  After the occurrence of such an event, the Company or its successor shall promptly issue to Holder a new Warrant for such new securities or other property.  The new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new Warrant.  The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events.

 

 

2.3                                 Adjustments for Combinations, Etc.  If the outstanding Shares are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased.

 

2.4                                 Price Adjustment.  If the Company issues additional common shares (including shares of Common Stock ultimately issuable upon conversion of a security convertible into Common Stock) after the date of the Warrant and the consideration per additional common share is less than the Warrant Price in effect immediately before such issue, the price at which the Shares are converted to Common Stock shall be adjusted in accordance with the treatment of the series of securities of which the Shares are part under the Company’s Certificate of Incorporation.

 

2.5                                 No Impairment.  The Company shall not, by amendment of its Articles or Certificate of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this Article 2 and in taking all such action as may be necessary or appropriate to protect Holder’s rights under this Article against impairment.

 

2.6                                 Fractional Shares.  No fractional Shares shall be issuable upon exercise or conversion of the Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share.  If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company shall eliminate such fractional share interest by paying Holder a cash amount computed by multiplying the fractional interest by the fair market value of a full Share.

 

2.7                                 Certificate as to Adjustments; Other Adjustments.  Upon each adjustment of the Warrant Price, the Company at its expense shall promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based.  The Company shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price.  If any change in the outstanding securities of the Company or any other event occurs, as to which the other provisions of this Article 2 are not strictly applicable, or if strictly applicable would not fairly protect the purchase rights of the Holder in accordance with such provisions, then the Board of Directors of the Company shall make an adjustment in the number and class of shares subject to this Warrant, the Warrant Price or the application of such provisions, so as to protect such purchase rights as aforesaid and to give the Holder, upon exercise for the same aggregate Warrant Price, the total number, class and kind of securities as it would have owned had the Warrant been exercised prior to the event and had it continued to hold such securities until after the event requiring the adjustment.

 

ARTICLE 3.                                REPRESENTATIONS AND COVENANTS OF THE COMPANY.

 

3.1                                 Representations and Warranties.  The Company hereby represents and warrants to the Holder as follows:

 

 

(a)                                  The initial Warrant Price hereunder is not greater than the price per share at which the Shares were last issued in an arm’s length transaction in which at least $500,000 of the shares were sold.

 

(b)                                 All Shares which may be issued upon the exercise of the purchase right represented by this Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws.  The Company shall, at all times, reserve a sufficient number of Shares and of shares of Common Stock for issuance upon Holder’s exercise of its rights hereunder and conversion of the Shares.

 

(c)                                  The Capitalization Table attached hereto as Exhibit A is true and complete as of the Issue Date.

 

3.2                                 Notice of Certain Events.  If the Company proposes at any time (a) to declare any dividend or distribution upon its Common Stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to the holders of any class or series of its stock any additional shares of stock of any class or series or other rights; (c) to effect any reclassification or recapitalization of Common Stock; (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up; or (e) offer holders of registration rights the opportunity to participate in an underwritten public offering of the company’s securities for cash, then, in connection with each such event, the Company shall give Holder (1) at least 30 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of Common Stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; (2) in the case of the matters referred to in (c) and (d) above at least 10 days prior written notice of the date when the same will take place (and specifying the date on which the holders of Common Stock will be entitled to exchange their Common Stock for securities or other property deliverable upon the occurrence of such event); and (3) in the case of the matter referred to in (e) above, the same notice as is given to the holders of such registration rights; provided that in the case of the matters referred to in (d) above, Holder shall treat such notice as confidential information and shall not divulge it to any person or entity other than its attorneys or accountants or otherwise as required by applicable law.

 

3.3                                 Information Rights.  So long as the Holder holds this Warrant and/or any of the Shares, the Company shall deliver to the Holder (a) promptly after mailing, copies of all notices or other written communications to the shareholders of the Company, (b) within 150 days after the end of each fiscal year of the Company, an accountant-reviewed year end financial statement and certified by an Officer of the Company, (c) within forty-five (45) days after the end of each fiscal quarter of the Company, a Company-prepared quarterly financial statement of the Company (provided the same are required to be delivered to shareholders of the same class of stock that this Warrant is exercisable for), and (d) within thirty (30) days after the end of each month, a Company-prepared monthly financial statement of the Company (provided the same are 

 

 

required to be delivered to shareholders of the same class of stock that this Warrant is exercisable for).

 

3.4                                 Registration Under Securities Act of 1933, as amended.  The Company agrees that with respect to the Shares or, if the Shares are convertible into Common Stock of the Company, such Common Stock, Holder shall have incidental, or “Piggyback,” and S-3 registration rights pursuant to and as set forth in the Company’s Seventh Amended and Restated Investor Rights Agreement dated March 9, 2007, as the same is in effect on the date hereof.  In the event of any subsequent changes to said Agreement which would be advantageous to the Holder’s registration rights, the Holder shall have the benefit of such changes, but no changes to said Agreement which would be less advantageous to the Holder with respect to such registration rights shall be binding on the Holder.

 

ARTICLE 4.                                REPRESENTATIONS, WARRANTIES OF THE HOLDER.  The Holder represents and warrants to the Company as follows:

 

4.1                                 Purchase for Own Account.  Except for transfers to Holder’s affiliates, this Warrant and the securities to be acquired upon exercise of this Warrant by the Holder will be acquired for investment for the Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the 1933 Act, and the Holder has no present intention of selling, granting any participation in, or otherwise distributing the same.  The Holder also represents that the Holder has not been formed for the specific purpose of acquiring this Warrant or the Shares.

 

4.2                                 Disclosure of Information.  The Holder has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities.  The Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to the Holder or to which the Holder has access.

 

4.3                                 Investment Experience.  The Holder:  (i) has experience as an investor in securities and acknowledges that the Holder is able to fend for itself, can bear the economic risk of the Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial or business matters that the Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or (ii) has a preexisting personal or business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables the Holder to be aware of the character, business acumen and financial circumstances of such persons.

 

4.4                                 Accredited Investor Status.  The Holder is an “accredited investor” within the meaning of Regulation D promulgated under the 1933 Act.

 

 

ARTICLE 5.                                MISCELLANEOUS

 

5.1                                 Term. This Warrant is exercisable, in whole or in part, at any time and from time to time on or before the Expiration Date set forth above.

 

5.2                                 Legends.  This Warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares,  if any) shall be imprinted with a legend in substantially the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AS PERMITTED UNDER APPLICABLE LAW.

 

5.3                                 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by the transferor and the transferee.

 

5.4                                 Transfer Procedure. Subject to the provisions of Section 5.2, Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company notice of the portion of the Warrant being transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable).

 

5.5                                 Notices. All notices and other communications from the Company to the Holder, or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, to such address as may have been furnished to the Company or the Holder, as the case may be, in writing by the Company or the Holder from time to time.

 

5.6                                 Waiver; Amendment. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

 

5.7                                 Issue Tax.  The issuance of the securities subject to this Warrant shall be made without charge to the Holder for any issue tax (other than applicable income taxes) in respect thereof.

 

5.8                                 Attorneys Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs reasonably incurred in such dispute, including reasonable attorneys’ fees.

 

 

5.9                                 Governing Law. This Warrant and all acts, transactions, disputes and controversies arising hereunder or relating hereto, and all rights and obligations of Holder and Company shall be governed by, and construed in accordance with the internal laws (and not the conflict of laws rules) of the State of Delaware.

 

	
 
    	
 
    	
TANGOE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
Title
    	
 
    
	
 
    	
 
    	
 
    
	
Holder:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ORIX Finance Equity Investors, LP
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: ORIX Finance Corp., its General Partner
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

 

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.                                       The undersigned hereby elects to purchase                shares of the Series                   Preferred Stock of [Company] pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full.

 

1.                                       The undersigned hereby elects to convert the attached Warrant into Shares in the manner specified in the Warrant.  This conversion is exercised with respect to                     of the Shares covered by the Warrant.

 

[Strike paragraph that does not apply.]

 

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

 

	
 
    
	
 
    
	
 
    

 

3.                                       The undersigned represents it is acquiring the Shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or distribution thereof except in compliance with applicable securities laws.

 

 

	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date
    

 

 

Exhibit A

 

Capitalization Table

 

TANGOE, INC.

CAP TABLE

AS OF JULY 28, 2008

 

	
 
    	
 
    	
Issued and Outstanding Stock
    	
 
    
	
Shareholder
    	
 
    	
Common
   Stock
    	
 
    	
Series A
   Preferred
    	
 
    	
Series B
   Preferred
    	
 
    	
Series C
   Preferred
    	
 
    	
Series D
   Preferred
    	
 
    	
Series D1
   Preferred
    	
 
    	
Series E
   Preferred
    	
 
    	
Series F
   Preferred
    	
 
    	
Series 1
   Preferred
    	
 
    	
Series 2
   Preferred
    	
 
    	
Total
    	
 
    
	
Edison Venture
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,170,464
    	
 
    	
3,823,724
    	
 
    	
2,745,387
    	
 
    	
1,568,800
    	
 
    	
1,331,081
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
17,639,456
    	
 
    
	
Sevin Rosen
    	
 
    	
273,633
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
10,030,279
    	
 
    	
2,131,564
    	
 
    	
12,435,476
    	
 
    
	
North Atlantic Capital
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,103,108
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,108,108
    	
 
    
	
Albert R. Subbloie, Jr.
    	
 
    	
4,639,173
    	
 
    	
488,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,127,173
    	
 
    
	
HO2.1
    	
 
    	
228,541
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,733,957
    	
 
    	
—
    	
 
    	
3,962,498
    	
 
    
	
Axiom Venture Partners III, L.P.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,353,200
    	
 
    	
1,283,764
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,636,984
    	
 
    
	
Teachers Insurance and Annuity   Association of America
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,187,653
    	
 
    	
—
    	
 
    	
3,187,653
    	
 
    
	
U.S. Bank National Association, as   Escrow Agent
    	
 
    	
229,619
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,185,079
    	
 
    	
250,532
    	
 
    	
2,665,230
    	
 
    
	
Investor Growth Capital Limited
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
7,133,153
    	
 
    	
—
    	
 
    	
—
    	
 
    	
7,133,153
    	
 
    
	
Investor Group, L.P.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,057,085
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,057,065
    	
 
    
	
Victor J. Nesi
    	
 
    	
1,624,764
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,624,764
    	
 
    
	
Gary R. Martino
    	
 
    	
916,850
    	
 
    	
80,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
996,850
    	
 
    
	
Convergent Investors   VI, L.P.
    	
 
    	
115,633
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,330,318
    	
 
    	
—
    	
 
    	
1,445,951
    	
 
    
	
OCI
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Charles Gamble
    	
 
    	
135,622
    	
 
    	
20,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
155,822
    	
 
    
	
Paul Schmidt
    	
 
    	
81,541
    	
 
    	
40,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
20,394
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
141,935
    	
 
    
	
CVF, LLC
    	
 
    	
38,546
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
698,157
    	
 
    	
59,538
    	
 
    	
796,241
    	
 
    
	
Steven Shwartz
    	
 
    	
220,000
    	
 
    	
104,828
    	
 
    	
44,566
    	
 
    	
63,728
    	
 
    	
39,220
    	
 
    	
78,440
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
550,782
    	
 
    
	
Albert M. Rossini
    	
 
    	
235,643
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
235,643
    	
 
    
	
Leonard J. Goldberg
    	
 
    	
230,000
    	
 
    	
335,350
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
565,350
    	
 
    
	
Joseph M. Goldberg
    	
 
    	
215,000
    	
 
    	
313,900
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
528,900
    	
 
    
	
Christopher T. Fraser
    	
 
    	
45,000
    	
 
    	
2,247
    	
 
    	
81,705
    	
 
    	
54,806
    	
 
    	
39,220
    	
 
    	
39,220
    	
 
    	
67,567
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
329,765
    	
 
    
	
Andrew B. Esposito
    	
 
    	
400,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
400,000
    	
 
    
	
Kaufman Family LLC
    	
 
    	
38,546
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
382,518
    	
 
    	
—
    	
 
    	
421,064
    	
 
    
	
Rae Ko Fairfield
    	
 
    	
148,000
    	
 
    	
105,941
    	
 
    	
—
    	
 
    	
—
    	
 
    	
78,440
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
332,381
    	
 
    
	
Jana Wilson
    	
 
    	
344,492
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
344,492
    	
 
    
	
James Offerdahl
    	
 
    	
313,722
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
313,722
    	
 
    
	
Venture Lending & Leasing IV,   Inc.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Donna Reis
    	
 
    	
300,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
300,000
    	
 
    
	
Gerald Kokos
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Gregory Burkus
    	
 
    	
20,000
    	
 
    	
100,000
    	
 
    	
44,566
    	
 
    	
127,457
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
292,023
    	
 
    
	
Stephano Kim
    	
 
    	
30,000
    	
 
    	
60,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
149,038
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
239,036
    	
 
    
	
ORIX Venture Finance LLC
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Paul White
    	
 
    	
167,228
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
167,228
    	
 
    
	
Bard Financial Services, Inc.   Profit Sharing Plan
    	
 
    	
50,000
    	
 
    	
72,550
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
122,550
    	
 
    
	
Jay   Steinberg and Melanie Steinberg (JTWROS)
    	
 
    	
50,000
    	
 
    	
73,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
123,000
    	
 
    
	
Kenneth Spitzbard
    	
 
    	
35,000
    	
 
    	
43,423
    	
 
    	
—
    	
 
    	
19,118
    	
 
    	
23,532
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
121,073
    	
 
    
	
Scott D. Porter
    	
 
    	
10,000
    	
 
    	
20,000
    	
 
    	
16,341
    	
 
    	
10,706
    	
 
    	
7,844
    	
 
    	
7,844
    	
 
    	
20,270
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
93,005
    	
 
    
	
Comerica Bank - California
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Jon Gassett
    	
 
    	
15,000
    	
 
    	
13,800
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
28,800
    	
 
    
	
CME
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Christopher DeBenedictis
    	
 
    	
20,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
7,844
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
27,844
    	
 
    
	
Subbloie gift/family (see below)
    	
 
    	
70,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
70,000
    	
 
    
	
Vertex Partners, L.P.
    	
 
    	
5,783
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
63,753
    	
 
    	
—
    	
 
    	
69,536
    	
 
    
	
Joseph R. LeMay, Jr.
    	
 
    	
66,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
66,000
    	
 
    
	
Mark Gorman
    	
 
    	
17,708
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
17,708
    	
 
    
	
Aaron D. Konecky
    	
 
    	
—
    	
 
    	
32,800
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
32,800
    	
 
    
	
Stan Katz
    	
 
    	
56,371
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
56,371
    	
 
    
	
Robert Scinto
    	
 
    	
56,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
56,000
    	
 
    
	
Tarrant Venture Partners, L.P.
    	
 
    	
54,774
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
54,774
    	
 
    
	
G&H Partners
    	
 
    	
5,885
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
43,311
    	
 
    	
—
    	
 
    	
49,196
    	
 
    
	
Eric Pias
    	
 
    	
40,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
40,000
    	
 
    
	
David Toole
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
39,219
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
39,219
    	
 
    
	
James A. Star
    	
 
    	
1,736
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
31,449
    	
 
    	
2,682
    	
 
    	
35,867
    	
 
    
	
Jacques Management, LLC
    	
 
    	
772
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
32,152
    	
 
    	
2,743
    	
 
    	
35,667
    	
 
    
	
David Eldredge
    	
 
    	
—
    	
 
    	
26,240
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
26,240
    	
 
    
	
Michael Gorey
    	
 
    	
27,500
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
27,500
    	
 
    
	
Denise Nesi
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Pacific USA Design Group, Inc.
    	
 
    	
24,669
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
24,669
    	
 
    
	
Bank of Southern Connecticut
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
James Gammon
    	
 
    	
19,999
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
19,999
    	
 
    
	
Frank David Robertson
    	
 
    	
1,400
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,400
    	
 
    
	
Richard Duffy
    	
 
    	
13,020
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
13,020
    	
 
    
	
Comerica Incorporated
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Michael Geier
    	
 
    	
10,833
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
10,833
    	
 
    
	
PowerBridge LLC
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Mark Reddert & Trix Lee, as   Community Property
    	
 
    	
8,222
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,222
    	
 
    
	
Peter Lynch
    	
 
    	
6,666
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
6,666
    	
 
    
	
Robert M. Carter & Patrice R.   Carter JTROS
    	
 
    	
6,201
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
6,201
    	
 
    
	
Walter Fedorweicz
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    

 

 

	
 
    	
 
    	
ISSUED AND OUTSTANDING WARRANTS
    	
 
    	
OUTSTANDING
    	
 
    	
Fully Diluted
    	
 
    
	
 
    	
 
    	
Common
    	
 
    	
Series B
    	
 
    	
Series C
    	
 
    	
Series D
    	
 
    	
Series E
    	
 
    	
Series 1
    	
 
    	
Series 2
    	
 
    	
Series F
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shareholder
    	
 
    	
Stock
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
TOTAL
    	
 
    	
Stock Options
    	
 
    	
Shares
    	
 
    	
% Own
    	
 
    
	
Edison   Venture
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
17,639,456
    	
 
    	
18.07
    	
%
    
	
Sevin   Rosen
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
12,435,478
    	
 
    	
12.74
    	
%
    
	
North   Atlantic Capital
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,108,108
    	
 
    	
8.31
    	
%
    
	
Albert   R. Subbloie, Jr.
    	
 
    	
100,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
100,000
    	
 
    	
2,383,719
    	
 
    	
7,610,892
    	
 
    	
7.80
    	
%
    
	
HO2.1
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,962,498
    	
 
    	
4.06
    	
%
    
	
Axiom   Venture Partners III, L.P.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,636,984
    	
 
    	
1.73
    	
%
    
	
Teachers   Insurance and Annuity Association of America
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,187,653
    	
 
    	
1.27
    	
%
    
	
U.S.   Bank National Association, as Escrow Agent
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,665,230
    	
 
    	
2.73
    	
%
    
	
Investor   Growth Capital Limited
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
7,133,153
    	
 
    	
7.31
    	
%
    
	
Investor   Group, L.P.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,057,065
    	
 
    	
3.13
    	
%
    
	
Victor   J. Nesi
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,624,764
    	
 
    	
1.66
    	
%
    
	
Gary   R. Martino
    	
 
    	
5,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,000
    	
 
    	
1,325,000
    	
 
    	
2,326,850
    	
 
    	
2.38
    	
%
    
	
Convergent Investors VI, L.P.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,445,951
    	
 
    	
1.48
    	
%
    
	
OCI
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
0.00
    	
%
    
	
Charles   Gamble
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
780,800
    	
 
    	
936,622
    	
 
    	
0.85
    	
%
    
	
Paul   Schmidt
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
675,000
    	
 
    	
816,935
    	
 
    	
0.84
    	
%
    
	
CVF,   LLC
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
796,241
    	
 
    	
0.82
    	
%
    
	
Steven   Shwartz
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
65,000
    	
 
    	
615,782
    	
 
    	
0.63
    	
%
    
	
Albert   M. Rossini
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
542,857
    	
 
    	
778,500
    	
 
    	
0.80
    	
%
    
	
Leonard   J. Goldberg
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
567,850
    	
 
    	
0.58
    	
%
    
	
Joseph   M. Goldberg
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
528,900
    	
 
    	
0.54
    	
%
    
	
Christopher   T. Fraser
    	
 
    	
5,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,000
    	
 
    	
65,000
    	
 
    	
399,765
    	
 
    	
0.41
    	
%
    
	
Andrew   B. Esposito
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
400,000
    	
 
    	
0.41
    	
%
    
	
Kaufman   Family LLC
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
421,064
    	
 
    	
0.43
    	
%
    
	
Rae   Ko Fairfield
    	
 
    	
5,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,000
    	
 
    	
—
    	
 
    	
337,381
    	
 
    	
0.35
    	
%
    
	
Jana   Wilson
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
344,492
    	
 
    	
0.35
    	
%
    
	
James   Offerdahl
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
313,722
    	
 
    	
0.32
    	
%
    
	
Venture   Lending & Leasing IV, Inc.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
304,400
    	
 
    	
—
    	
 
    	
304,400
    	
 
    	
—
    	
 
    	
304,400
    	
 
    	
0.31
    	
%
    
	
Donna   Reis
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
300,000
    	
 
    	
0.31
    	
%
    
	
Gerald   Kokos
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
295,000
    	
 
    	
295,000
    	
 
    	
0.30
    	
%
    
	
Gregory   Burkus
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
292,023
    	
 
    	
0.30
    	
%
    
	
Stephano   Kim
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
239,036
    	
 
    	
0.24
    	
%
    
	
ORIX   Venture Finance LLC
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
168,919
    	
 
    	
—
    	
 
    	
—
    	
 
    	
850,000
    	
 
    	
1,018,919
    	
 
    	
—
    	
 
    	
1,018,919
    	
 
    	
1.04
    	
%
    
	
Paul   White
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
167,228
    	
 
    	
0.17
    	
%
    
	
Bard   Financial Services, Inc. Profit Sharing Plan
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
125,050
    	
 
    	
0.13
    	
%
    
	
Jay   Steinberg and Melanie Steinberg (JTWROS)
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
123,000
    	
 
    	
0.13
    	
%
    
	
Kenneth   Spitzbard
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
121,073
    	
 
    	
0.12
    	
%
    
	
Scott   D. Porter
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
85,505
    	
 
    	
0.10
    	
%
    
	
Comerica   Bank - California
    	
 
    	
—
    	
 
    	
50,000
    	
 
    	
15,000
    	
 
    	
28,238
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
93,238
    	
 
    	
—
    	
 
    	
93,238
    	
 
    	
0.10
    	
%
    
	
Jon   Gassett
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
45,000
    	
 
    	
73,800
    	
 
    	
0.08
    	
%
    
	
CME
    	
 
    	
80,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
80,000
    	
 
    	
—
    	
 
    	
80,000
    	
 
    	
0.08
    	
%
    
	
Christopher   DeBenedictis
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
50,000
    	
 
    	
77,844
    	
 
    	
0.08
    	
%
    
	
Subbloie   gift/family (see below)
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
70,000
    	
 
    	
0.07
    	
%
    
	
Vertex   Partners, L.P.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
69,536
    	
 
    	
0.07
    	
%
    
	
Joseph   R. LeMay, Jr.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
66,000
    	
 
    	
0.07
    	
%
    
	
Mark   Gorman
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
45,000
    	
 
    	
62,708
    	
 
    	
0.06
    	
%
    
	
Aaron   D. Konecky
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
32,800
    	
 
    	
0.03
    	
%
    
	
Stan   Katz
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
56,371
    	
 
    	
0.06
    	
%
    
	
Robert   Scinto
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
56,000
    	
 
    	
0.06
    	
%
    
	
Tarrant   Venture Partners, L.P.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
54,774
    	
 
    	
0.06
    	
%
    
	
G&H   Partners
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
49,188
    	
 
    	
0.05
    	
%
    
	
Eric   Pias
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
40,000
    	
 
    	
0.04
    	
%
    
	
David   Toole
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
39,219
    	
 
    	
0.04
    	
%
    
	
James   A. Star
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
35,867
    	
 
    	
0.04
    	
%
    
	
Jacques   Management, LLC
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
35,667
    	
 
    	
0.04
    	
%
    
	
David   Eldredge
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
26,240
    	
 
    	
0.03
    	
%
    
	
Michael   Gorey
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
27,500
    	
 
    	
0.03
    	
%
    
	
Denise   Nesi
    	
 
    	
25,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
25,000
    	
 
    	
—
    	
 
    	
25,000
    	
 
    	
0.03
    	
%
    
	
Pacific   USA Design Group, Inc.
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
24,669
    	
 
    	
0.03
    	
%
    
	
Bank   of Southern Connecticut
    	
 
    	
20,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
20,000
    	
 
    	
—
    	
 
    	
20,000
    	
 
    	
0.02
    	
%
    
	
James   Gammon
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
19,999
    	
 
    	
0.02
    	
%
    
	
Frank   David Robertson
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
13,323
    	
 
    	
14,723
    	
 
    	
0.02
    	
%
    
	
Richard   Duffy
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
13,020
    	
 
    	
0.01
    	
%
    
	
Comerica   Incorporated
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
12,526
    	
 
    	
—
    	
 
    	
—
    	
 
    	
12,526
    	
 
    	
—
    	
 
    	
12,526
    	
 
    	
0.01
    	
%
    
	
Michael   Geier
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
10,833
    	
 
    	
0.01
    	
%
    
	
PowerBridge   LLC
    	
 
    	
10,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
10,000
    	
 
    	
—
    	
 
    	
10,000
    	
 
    	
0.01
    	
%
    
	
Mark   Reddert & Trix Lee, as Community Property
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,222
    	
 
    	
0.01
    	
%
    
	
Peter   Lynch
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
6,666
    	
 
    	
0.01
    	
%
    
	
Robert   M. Carter & Patrice R. Carter JTROS
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
6,201
    	
 
    	
0.01
    	
%
    
	
Walter   Fedorweicz
    	
 
    	
6,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
6,000
    	
 
    	
—
    	
 
    	
6,000
    	
 
    	
0.01
    	
%
    

 

 

TANGOE, INC.

CAP TABLE

AS OF JULY 28, 2008

 

	
 
    	
 
    	
Issued and Outstanding Stock
    	
 
    
	
 
    	
 
    	
Common
    	
 
    	
Series A
    	
 
    	
Series B
    	
 
    	
Series C
    	
 
    	
Series D
    	
 
    	
Series D1
    	
 
    	
Series E
    	
 
    	
Series F
    	
 
    	
Series 1
    	
 
    	
Series 2
    	
 
    	
 
    	
 
    
	
Shareholder
    	
 
    	
Stock
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Total
    	
 
    
	
Mary Ann Lewis
    	
 
    	
5,625
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,625
    	
 
    
	
Alan D. Ferber
    	
 
    	
4,962
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
4,962
    	
 
    
	
Cheryl Sennett
    	
 
    	
4,510
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
4,610
    	
 
    
	
Tim Speevack
    	
 
    	
3,791
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,791
    	
 
    
	
Yan Jin
    	
 
    	
3,541
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,541
    	
 
    
	
Yujin Lee Kim
    	
 
    	
2,916
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,916
    	
 
    
	
Murali Chegu
    	
 
    	
2,750
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,750
    	
 
    
	
Sushil Kambampati
    	
 
    	
2,560
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,560
    	
 
    
	
Tom Beaumont
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Scott Hudnall
    	
 
    	
2,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,000
    	
 
    
	
Dianne T. Cash
    	
 
    	
1,979
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,979
    	
 
    
	
Ben Michaud
    	
 
    	
1,966
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,966
    	
 
    
	
Ken Tanoury
    	
 
    	
1,770
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,770
    	
 
    
	
Fangping Chen
    	
 
    	
1,624
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,624
    	
 
    
	
Payal Shah
    	
 
    	
1,354
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,354
    	
 
    
	
Thomas Cullinane 
    	
 
    	
1,566
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,566
    	
 
    
	
Luana Vaupotic
    	
 
    	
1,249
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,249
    	
 
    
	
Michael Paulsmeyer
    	
 
    	
1,124
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,124
    	
 
    
	
Timothy Reidy & Cynthia Reidy
    	
 
    	
990
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
7,281
    	
 
    	
—
    	
 
    	
8,271
    	
 
    
	
James Buckley
    	
 
    	
937
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
937
    	
 
    
	
Jenny Hu
    	
 
    	
625
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
625
    	
 
    
	
William Marsh
    	
 
    	
106,478
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
106,478
    	
 
    
	
Robert Whitmore
    	
 
    	
78,124
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
78,124
    	
 
    
	
Terri Daniele
    	
 
    	
5,000
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,000
    	
 
    
	
Schell Carpenter
    	
 
    	
21,400
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
21,400
    	
 
    
	
Nathan Little
    	
 
    	
24,009
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
24,009
    	
 
    
	
Jennifer Clower Brown
    	
 
    	
8,911
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,911
    	
 
    
	
Michael Cohen
    	
 
    	
16,963
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
16,963
    	
 
    
	
Ray J. Sapinoro
    	
 
    	
9,137
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
9,137
    	
 
    
	
Sanjeev Archarya
    	
 
    	
5,833
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,833
    	
 
    
	
Lawrence Seifert
    	
 
    	
18,896
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
18,896
    	
 
    
	
Richard S. Pontin
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Scott E. Snyder
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Christopher J. Mezzatesta
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Issued and Outstanding 
    	
 
    	
12,007,882
    	
 
    	
1,932,079
    	
 
    	
8,357,642
    	
 
    	
4,099,539
    	
 
    	
2,961,881
    	
 
    	
4,235,759
    	
 
    	
10,810,810
    	
 
    	
10,190,218
    	
 
    	
21,725,907
    	
 
    	
2,447,059
    	
 
    	
78,768,776
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MERGER SHARES NOT ISSUED
    	
 
    	
872,202
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
124,990
    	
 
    	
58,295
    	
 
    	
1,055,487
    	
 
    
	
OPTIONS OUTSTANDING BUT NOT LISTED ON THIS CAP TABLE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
OPTIONS AVAILABLE TO BE ISSUED
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTAL SHARES
    	
 
    	
12,880,084
    	
 
    	
1,932,079
    	
 
    	
8,357,642
    	
 
    	
4,099,539
    	
 
    	
2,961,881
    	
 
    	
4,235,759
    	
 
    	
10,810,810
    	
 
    	
10,190,218
    	
 
    	
21,850,897
    	
 
    	
2,505,354
    	
 
    	
79,824,253
    	
 
    

 

 

	
 
    	
 
    	
ISSUED   AND OUTSTANDING WARRANTS
    	
 
    	
OUTSTANDING
    	
 
    	
Fully   Diluted
    	
 
    
	
 
    	
 
    	
Common
    	
 
    	
Series B
    	
 
    	
Series C
    	
 
    	
Series D
    	
 
    	
Series E
    	
 
    	
Series 1
    	
 
    	
Series 2
    	
 
    	
Series F
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shareholder
    	
 
    	
Stock
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
TOTAL
    	
 
    	
Stock Options
    	
 
    	
Shares
    	
 
    	
% Own
    	
 
    
	
Mary Ann Lewis
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,625
    	
 
    	
0.01
    	
%
    
	
Alan D. Ferber
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
4,962
    	
 
    	
0.01
    	
%
    
	
Cheryl Sennett
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
4,510
    	
 
    	
0.00
    	
%
    
	
Tim Speevack
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,791
    	
 
    	
0.00
    	
%
    
	
Yan Jin
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
3,541
    	
 
    	
0.00
    	
%
    
	
Yujin Lee Kim
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,916
    	
 
    	
0.00
    	
%
    
	
Murali Chegu
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,750
    	
 
    	
0.00
    	
%
    
	
Sushil Kambampati
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,560
    	
 
    	
0.00
    	
%
    
	
Tom Beaumont
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,500
    	
 
    	
—
    	
 
    	
2,500
    	
 
    	
0.00
    	
%
    
	
Scott Hudnall
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
2,000
    	
 
    	
0.00
    	
%
    
	
Dianne T.Cash
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,979
    	
 
    	
0.00
    	
%
    
	
Ben Michaud
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,966
    	
 
    	
0.00
    	
%
    
	
Ken Tanoury
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,770
    	
 
    	
0.00
    	
%
    
	
Fangping Chen
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,624
    	
 
    	
0.00
    	
%
    
	
Payal Shah
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,354
    	
 
    	
0.00
    	
%
    
	
Thomas Cullinane   
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,566
    	
 
    	
0.00
    	
%
    
	
Luana Vaupotic
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,249
    	
 
    	
0.00
    	
%
    
	
Michael   Paulsmeyer
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,124
    	
 
    	
0.00
    	
%
    
	
Timothy Reidy   & Cynthia Reidy
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,271
    	
 
    	
0.01
    	
%
    
	
James Buckley
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
937
    	
 
    	
0.00
    	
%
    
	
Jenny Hu
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
625
    	
 
    	
0.00
    	
%
    
	
William Marsh
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
106,478
    	
 
    	
0.11
    	
%
    
	
Robert Whitmore
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
421,876
    	
 
    	
500,000
    	
 
    	
0.51
    	
%
    
	
Terri Daniele
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,000
    	
 
    	
0.01
    	
%
    
	
Schell Carpenter
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
21,400
    	
 
    	
0.02
    	
%
    
	
Nathan Little
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
24,009
    	
 
    	
0.02
    	
%
    
	
Jennifer Clower   Brown
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
8,911
    	
 
    	
0.01
    	
%
    
	
Michael Cohen
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
16,963
    	
 
    	
0.02
    	
%
    
	
Ray J. Sapinoro
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
9,137
    	
 
    	
0.01
    	
%
    
	
Sanjeev Archarya
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
5,833
    	
 
    	
0.01
    	
%
    
	
Lawrence Seifert
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
18,896
    	
 
    	
0.02
    	
%
    
	
Richard S. Pontin
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
1,797,665
    	
 
    	
1,797,665
    	
 
    	
1.84
    	
%
    
	
Scott E. Snyder
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
731,014
    	
 
    	
731,014
    	
 
    	
0.75
    	
%
    
	
Christopher J. Mezzatesta
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
479,808
    	
 
    	
479,808
    	
 
    	
0.49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Issued and Outstanding 
    	
 
    	
266,000
    	
 
    	
50,000
    	
 
    	
15,000
    	
 
    	
28,238
    	
 
    	
168,919
    	
 
    	
12,526
    	
 
    	
304,400
    	
 
    	
850,000
    	
 
    	
1,695,083
    	
 
    	
9,716,062
    	
 
    	
90,179,921
    	
 
    	
92.38
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MERGER   SHARES NOT ISSUED
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,055,487
    	
 
    	
1.08
    	
%
    
	
OPTIONS   OUTSTANDING BUT NOT LISTED ON THIS CAP TABLE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
3,059,652
    	
 
    	
3,059,652
    	
 
    	
3.13
    	
%
    
	
OPTIONS   AVAILABLE TO BE ISSUED
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
3,321,216
    	
 
    	
3,321,216
    	
 
    	
3.40
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTAL   SHARES
    	
 
    	
266,000
    	
 
    	
50,000
    	
 
    	
15,000
    	
 
    	
28,238
    	
 
    	
168,919
    	
 
    	
12,526
    	
 
    	
304,400
    	
 
    	
850,000
    	
 
    	
1,695,083
    	
 
    	
16,096,930
    	
 
    	
97,616,276
    	
 
    	
100.00
    	
%
    

 

	
 
    	
 
    	
Common
    	
 
    	
Series A
    	
 
    	
Series B
    	
 
    	
Series C
    	
 
    	
Series D
    	
 
    	
Series D1
    	
 
    	
Series E
    	
 
    	
Series F
    	
 
    	
Series 1
    	
 
    	
Series 2
    	
 
    	
Total
    	
 
    
	
 
    	
 
    	
Stock
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Preferred
    	
 
    	
Shares
    	
 
    
	
FULLY DILUTED
    	
 
    	
29,243,014
    	
 
    	
1,932,079
    	
 
    	
8,407,642
    	
 
    	
4,114,539
    	
 
    	
2,990,119
    	
 
    	
4,235,759
    	
 
    	
10,979,729
    	
 
    	
11,040,218
    	
 
    	
21,863,423
    	
 
    	
2,809,754
    	
 
    	
97,616,276
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
% FULLY   DILUTED
    	
 
    	
29.96
    	
%
    	
1.98
    	
%
    	
8.61
    	
%
    	
4.22
    	
%
    	
3.06
    	
%
    	
4.34
    	
%
    	
11.25
    	
%
    	
11.31
    	
%
    	
22.40
    	
%
    	
2.88
    	
%
    	
100.00
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Shares to   reserve for
    	
 
    	
97,616,276
    	
 
    	
1,932,079
    	
 
    	
8,407,642
    	
 
    	
4,114,539
    	
 
    	
2,990,119
    	
 
    	
4,235,759
    	
 
    	
10,979,729
    	
 
    	
11,040,218
    	
 
    	
21,863,423
    	
 
    	
2,809,754
    	
 
    	
 
    	
 
    
	
Total   shares authorized by certificate
    	
 
    	
103,000,000
    	
 
    	
3,780,000
    	
 
    	
8,407,642
    	
 
    	
4,114,539
    	
 
    	
2,990,119
    	
 
    	
4,235,759
    	
 
    	
10,979,729
    	
 
    	
11,040,218
    	
 
    	
21,863,424
    	
 
    	
2,809,755
    	
 
    	
 
    	
 
    

 

 

EXHIBIT B

 

STOCK REPURCHASE AGREEMENT

 

Tangoe, Inc.

35 Executive Boulevard

Orange, CT  06477

Attention:  Gary Martino, CFO

 

Ladies and Gentlemen:

 

The undersigned is the holder of the shares of Series A Preferred Stock and/or Common Stock of Tangoe, Inc., a Delaware corporation (the “Company”) described on the signature page to this Agreement (the “Signature Page”) as the “Shares to be Purchased” (referred to as the “Shares”).  The undersigned wishes to sell the Shares to the Company on the terms and conditions set forth in this Agreement, as part of a proposed repurchase of shares to be effected by the Company as described in a letter dated July 10, 2008 from the Company to the undersigned and other stockholders of the Company (the “Letter”).  Capitalized terms used in this Agreement and not defined shall have the meanings set forth in the Letter.

 

1.             Repurchase of the Shares.  Subject to the terms and conditions set forth in this Agreement, the Company shall repurchase the Shares from the undersigned, and the undersigned shall sell the Shares to the Company, free and clear of all liens, pledges, security interests, charges, claims and other encumbrances, for the aggregate purchase price (the “Purchase Price”) set forth on the Signature Page, payable as provided below.

 

2.             Procedures.

 

(a)           Submissions.  In order to participate in the Proposed Repurchase and have the Company consider signing this Agreement and consummating the repurchase contemplated by this Agreement, the undersigned must submit to the Company:  (i) two properly completed copies of the Signature Page of this Agreement, signed by the undersigned, (ii) original stock certificates for all of the Shares(the “Stock Certificates”) (in the event that only a portion of the shares represented by a certificate are included in the Shares, the Company will prepare and return to you a new stock certificate for the retained shares); and (iii) a Stock Assignment in the form attached to this Agreement, properly completed and signed by the undersigned with respect to each Stock Certificate (the “Stock Assignments”), all of which must be delivered to the Company, c/o Shipman & Goodwin LLP, One Constitution Plaza, Hartford, CT 06103, Attention : Pattie Chouinard, Paralegal.  If the Shares are jointly held, each owner must sign the documents specified in this Section 2.

 

(b)           Acceptance.  The undersigned understands that the purchase and sale of the Shares pursuant to this Agreement is conditional upon the consummation by the Company of the Acquisitions the Debt Financing and the Series F Financing.  This Agreement, the Stock Certificates and Stock Assignments delivered pursuant to Section 2(a) above will be held by the Company in escrow pending closing under this Agreement.  If the Company rejects the undersigned’s offer to sell the Shares, or if the closing of the purchase and sale of the Shares contemplated by this Agreement has not been consummated by August 15, 2008, then this 

 

 

Agreement and the Stock Assignments will be destroyed and the Stock Certificates will be returned to the undersigned.  This Agreement shall be deemed to be accepted by the Company only when a copy of this Agreement is signed by the Company.

 

(c)           Rejection.  The Company may at its option refuse to accept the undersigned’s offer to sell the Shares in its discretion for any reason.

 

3.             Closing.

 

(a)           Subject to the terms and provisions of this Agreement, the purchase and sale of the Shares shall be consummated on such date on or before August 15, 2008 as is designated by the Company (the “Closing”).

 

(b)           At the Closing, the Company will pay to the undersigned, by check or wire transfer, the Purchase Price

 

(c)           At the Closing, the Stock Certificates and Stock Assignments will be deemed released from escrow and delivered to the Company, free and clear of all liens, pledges, security interests, charges, claims and other encumbrances.

 

4.             Representations and Warranties of the Parties.

 

(a)           Upon execution of this Agreement, the Company hereby represents and warrants to the undersigned that:

 

(i)                                     This Agreement is the valid and binding obligation of the Company, enforceable against it in accordance with its terms, except that such enforcement is subject to applicable bankruptcy, reorganization, insolvency, moratorium, and other similar laws affecting generally the enforcement of creditors’ rights; and

 

(ii)                                  No authorization, approval or consent of any governmental department, bureau or agency or other public board or authority is required to be obtained for the consummation by the Company of the transactions contemplated by this Agreement, except for such consents as have been obtained.

 

(b)           The undersigned hereby represents and warrants to the Company that:

 

(i)                                     The undersigned is the record and beneficial owner of the Shares, free and clear of all liens, pledges, security interests, charges, claims and other encumbrances;

 

(ii)                                  This Agreement is the valid and binding obligation of the undersigned, enforceable against the undersigned in accordance with its terms, except that such enforcement is subject to applicable bankruptcy, reorganization, insolvency, moratorium, and other similar laws affecting generally the enforcement of creditors’ rights; and

 

 

(iii)                               No authorization, approval or consent of any governmental department, bureau or agency or other public board or authority is required to be obtained for the consummation by the undersigned of the transactions contemplated by this Agreement.

 

5.             General Provisions.

 

5.1          Survival of Representations, Warranties and Covenants.  The representations, warranties and covenants contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing, and shall continue until the expiration of any applicable statute of limitations.

 

5.2          Governing Law.  This Agreement shall be governed by and construed under the laws of the State of Delaware.

 

5.3          Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

5.4          Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the undersigned.

 

5.5          Entire Agreement.  This Agreement, including all Exhibits and Schedules hereto constitutes the entire agreement among the parties, and supersedes all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

 

[Intentionally left blank; signature page follows.]

 

 

TANGOE, INC.

 

STOCK REPURCHASE AGREEMENT SIGNATURE PAGE

 

Name of the Undersigned:                                                       

{Note:  Must match name on stock certificate(s) exactly.}

 

Number of shares of Series A Preferred Stock to be Sold:                        {Note:  Members of Senior Management should enter “None.”}

 

Number of Shares of Common Stock to be Sold:                        {Note: Series A Preferred Stockholders should enter “None,” unless otherwise approved by the Company in advance.}

 

Purchase Price (insert number of shares times $1.06): $                       {Note:  If you are selling all of your Common Stock and Series A Preferred Stock with prior Company approval, use $0.75 per share rather than $1.06.}

 

	
DATE:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Signature(s)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
If the undersigned is an entity:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Social Security Number(s) or
    
	
 
    	
 
    	
 
    	
Taxpayer’s Identification Number(s)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Address:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Accepted by Tangoe, Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    

 

 

EXHIBIT F

 

STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

{For Series A Preferred Stock Only}

 

FOR VALUE RECEIVED, the undersigned                                                does hereby sell, assign and transfer unto Tangoe, Inc. an aggregate of                                                                      shares of the Series A Preferred Stock, par value $0.0001 per share, of Tangoe, Inc., a Delaware corporation (the “Company”) standing in the undersigned’s name on the books of the Company and represented by Stock Certificate No.       , and does hereby irrevocably constitute and appoint                                                       as the undersigned’s attorney to transfer this stock on the books of the Company with full power of substitution in the premises.

 

Dated: July         , 2008

 

	
 
    	
 
    	
 
    

 

 

Instructions::

1.                Insert your name, the number of shares and Stock Certificate No.

2.                Leave the “constitute and appoint                              ” line blank.

3.                The name should match exactly the name on your stock certificate.

4.                Do a separate Stock Assignment for each Stock Certificate.

 

 

EXHIBIT F

 

STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

{For Common Stock Only}

 

FOR VALUE RECEIVED, the undersigned,                                                does hereby sell, assign and transfer unto Tangoe, Inc. an aggregate of                                                                       shares of the Common Stock, par value $0.0001 per share, of Tangoe, Inc., a Delaware corporation (the “Company”) standing in the undersigned’s name on the books of the Company and represented by Stock Certificate No.       , and does hereby irrevocably constitute and appoint                                                       as the undersigned’s attorney to transfer this stock on the books of the Company with full power of substitution in the premises.

 

Dated: July       ,2008

 

	
 
    	
 
    	
 
    

 

 

Instructions:;

1.                Insert your name, the number of shares and Stock Certificate No.

2.                Leave the “constitute and appoint                              ” line blank.

3.                The name should match exactly the name on your stock certificate.

4.                Do a separate Stock Assignment for each Stock Certificate.

 

 

EXHIBIT C

 

	
1.
    	
LOAN   AMOUNT  (Section 1.1):
    	
Term Loan = $14,250,000.00
    
	
 
    	
 
    	
Revolving Loans = $5,000,000.00 (subject to limitations below)
    
	
 
    	
 
    	
 
    
	
 
    	
The Loans shall consist of   a Term Loan (the “Term Loan”) and Revolving Loans (the “Revolving Loans”) as   follows. (“Loans” as used in this Agreement means, collectively, the Term   Loan and the Revolving Loans.)
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Term Loan.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(1)
    	
Disbursement of Term Loan.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
The Term Loan shall be in the original principal amount of   $14,250,000.00, and, subject to the terms and conditions in this Agreement,   shall be disbursed to Borrower in one disbursement, but in no event shall the   Term Loan be made after July 31, 2008.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(2)
    	
Principal Payments.  On each “Payment Date” set forth in the   table below, Borrower shall repay the principal of the Term Loan in the   amount set forth across from the applicable Payment Date:
    

 

	
 
    	
 
    	
 
    	
Payment Date
    	
 
    	
Amount
    	
 
    
	
 
    	
 
    	
 
    	
February 1, 2010, and   the first day of each month thereafter, through and including July 1,   2010
    	
 
    	
$
    	
201,250
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
August 1, 2010, and   the first day of each month thereafter, through and including July 1,   2011
    	
 
    	
$
    	
340,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
August 1, 2011, and   the first day of each month thereafter, through and including June 1,   2012
    	
 
    	
$
    	
491,000
    	
 
    

 

 

	
 
    	
 
    	
 
    	
July 1, 2012 (the “Term Loan Maturity Date”)
    	
 
    	
$
    	
3,561,500
    	
 
    

 

	
 
    	
 
    	
 
    	
The entire unpaid principal balance of the Term Loan and all accrued   and unpaid interest thereon shall be due and payable on Term Loan Maturity   Date.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(3)
    	
Prepayment Charge.  Borrower shall have the right, at its   election, to prepay the Term Loan as a whole at any time, or in part from   time to time, provided Borrower pays ORIX at the time of such prepayment   (whether such prepayment is made voluntary or upon acceleration) the   following prepayment charge: (i) 2% of the principal amount prepaid on   or prior to July      , 2010; and (ii) 1%   of the principal amount prepaid at any time thereafter.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(4)
    	
Interest Payments.  Commencing on the date on which the Term   Loan is made, accrued interest on the Term Loan shall be paid monthly as   provided in Section 1.3 of this Loan Agreement.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(b)
    	
Revolving Loans.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(1)
    	
Amount.  The   Revolving loans shall be in an amount up to the lesser of the following (the   “Revolving Loan Limit”): (i) $5,000,000.00 (the “Revolving Loan Dollar   Limit”) or (ii) 85% of the amount of Borrower’s Eligible Accounts (as   defined in Section 8 above) (the “Advance Rate”), subject to Reserves   (as defined in Section 8 above).    If for any reason, at any time, the outstanding principal balance of   the Revolving Loans exceeds the Revolving Loan Limit, Borrower shall   immediately repay the excess to ORIX without notice or demand.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(2)
    	
Advance Rate.    ORIX may, from time to time, modify the Advance Rate, in its good   faith business judgment, upon notice to Borrower, based on changes in   collection
    

 

 

	
 
    	
 
    	
 
    	
experience with respect to Accounts or other issues or factors   relating to the Accounts or other Collateral.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(3)
    	
Disbursement Requests.  Requests by Borrower for disbursements of   Revolving Loans shall be made in writing by Borrower to ORIX at least three   Business Days prior to the date the requested disbursement is to be made.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(4)
    	
Revolving Loan Maturity Date.  Notwithstanding anything to the contrary in   this Agreement, Revolving Loans may be borrowed, repaid and re-borrowed,   until March 9, 2009 (the “Revolving Loan Maturity Date”) on which date   the entire unpaid principal balance of the Revolving Loans and all accrued   and unpaid interest thereon shall be due and payable.  After the Revolving Loan Maturity Date, no   further Revolving Loans shall be made.
    

 

	
2.
    	
INTEREST.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Interest Rate

(Section 1.3):
    	
The Term Loan shall bear   interest at an interest rate equal to the Prime Rate in effect from time to   time, plus 5.0% per annum; provided that, at no time shall the Term Loan bear   interest at an interest rate equal to less than 9.5% or more than 12.0%, per   annum.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Revolving Loans shall   bear interest at an interest rate equal to the Prime Rate in effect from time   to time, plus 1.0% per annum.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest shall be   calculated on the basis of a 360-day year for the actual number of days   elapsed. Prime Rate has the meaning set forth in Section 8 of this   Agreement.
    

 

 

	
6.
    	
FINANCIAL COVENANTS.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(Section 4.8):
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Borrower shall comply with the following financial covenants.  Compliance shall be measured quarterly,   except as otherwise provided below.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
EBITDA:
    	
 
    	
Borrowers’ EBITDA determined on a consolidated basis, shall not be   less than the following amounts during the following periods:
    

 

	
 
    	
 
    	
 
    	
Period
    	
 
    	
Minimum
   EBITDA
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
3 months ended   September 30, 2008
    	
 
    	
$
    	
500,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
6 months ended   December 31, 2008
    	
 
    	
$
    	
1,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
9 months ended   March 31, 2009
    	
 
    	
$
    	
2,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
12 months ended June 31,   2009
    	
 
    	
$
    	
3,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
12 months ended   September 30, 2009
    	
 
    	
$
    	
4,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
12 months ended   December 31, 2009
    	
 
    	
$
    	
5,000,000
    	
 
    

 

	
 
    	
 
    	
 
    	
For each 12 month period ending on March 31, June 31, September 30   and December 31 thereafter, through and including December 31,   2011, the minimum amount of EBITDA for each such period shall be an amount   negotiated for in good faith, and agreed to in writing, by Borrower and ORIX   and which is based upon the most recent budget, operating plan and other financial   information of Borrower provided to ORIX, provided, however, if   Borrower and ORIX do not reach agreement for the minimum amount of EBITDA for   any such period, Borrower and ORIX hereby agree that the minimum amount of   EBITDA for such period will be equal to the sum of $250,000 plus the minimum   amount of EBITDA established for the immediately preceding period, provided,   further, however, that any shortfall in Borrower’s EBITDA will   be waived by ORIX if it
    

 

 

	
 
    	
 
    	
 
    	
receives evidence within 30 days of the end of the applicable period,   satisfactory to ORIX, that either (i) Borrower has raised Subordinated   Debt in an amount equal to any such shortfall, or (ii) Borrower   maintained on the last day of the applicable period, unrestricted cash and   cash equivalents, in an account or accounts with respect to which ORIX has a   first priority security interest and has obtained an account control   agreement or account control agreements, in form and substance satisfactory   to ORIX, of not less than $6,000,000.00.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Minimum Liquidity:
    	
 
    	
Borrower shall maintain at all times, unrestricted cash and cash   equivalents, in an account or accounts with respect to which ORIX has a first   priority security interest and has obtained an account control agreement or   account control agreements, in form and substance satisfactory to ORIX, of   not less than $4,000,000.00.  Following   ORIX’s review of the Borrower’s audited financial statements for fiscal year   ended December 31, 2008, ORIX may in its sole and absolute discretion   (but shall have no obligation to do so), eliminate this “Minimum Liquidity”   covenant upon written notice thereof from ORIX to Borrower.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Definitions:
    	
 
    	
“EBITDA” shall mean for any period (the “Applicable Period”),   the net income of Borrower for the Applicable Period, before interest, taxes,   depreciation and other non-cash amortization expenses (including stock   compensation expenses and impairment of intangibles) as determined in   accordance with GAAP.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
“Subordinated Debt” is indebtedness incurred by Borrower   subordinated to all of Borrower’s now or hereafter indebtedness to ORIX   (pursuant to a subordination, intercreditor, or other similar agreement in   form and substance satisfactory to ORIX entered into between ORIX and the   other creditor), on terms acceptable to ORIX.
    

 

 

Exhibit D

 

Flow of Funds Memo

 

[See attached]

 

 

FUNDS FLOW MEMORANDUM
 RELATING TO
 TANGOE, INC.
 July 28, 2008
 FINANCING AND ACQUISITION
 OF
 THE BUSINESS AND SUBSTANTIALLY ALL OF THE ASSETS OF
 ISG, INC. and BILLINGIT.COM, INC.

 

Parties

 

	
Tangoe, Inc.
    	
 
    	
“Purchaser”
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Information Strategies Group, Inc. (“’ISG”) and BillingIT.com,
   Inc. (“BillingIT”)
    	
 
    	
“Sellers”
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Investor   Growth Capital Limited
    	
 
    	
“IGC Limited”
    	
 
    
	
Investor   Growth L.P.
    	
 
    	
“IG LP”
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
ORIX   Venture Finance LLC
    	
 
    	
“ORIX”
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
U.S.   Bank National Association
    	
 
    	
“Escrow Agent”
    	
 
    

 

Sources and Uses of Cash at Closing

 

	
Sources:
    	
 
    	
 
    	
 
    
	
IGC Limited Investment(1)
    	
 
    	
$
    	
8,400,000.97
    	
 
    
	
IG LP Investment(2)
    	
 
    	
3,599,999.74
    	
 
    
	
ORIX Loan
    	
 
    	
14,250,000.00
    	
 
    
	
Option Exercise Payment from Rick   Pontin
    	
 
    	
21,824.00
    	
 
    
	
Option Exercise Payment from Al   Rossini
    	
 
    	
70,000.00
    	
 
    
	
Option Exercise Payment from   Scott Snyder
    	
 
    	
7,986.00
    	
 
    
	
Option Exercise Payment from   Chris Mezzatesta
    	
 
    	
5,243.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Sources
    	
 
    	
$
    	
26,355,052.74
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Uses:
    	
 
    	
 
    	
 
    
	
A.1           Purchase Price Payment to ISG
    	
 
    	
$
    	
11,525,000.00
    	
 
    
	
A.2           Purchase Price Payment to BillingIT
    	
 
    	
100,000.00
    	
 
    

 

(1)   Investment to be made directly to Purchaser to the following account:

 

Tangoe, Inc

Comerica Bank

SWIFT# -MNBDUS33
 Routing# -121137522
 Acct# -1892029842

 

(2)   Investment to be made directly to Purchaser at direction of Holdco to the following account:

 

Tangoe, Inc

Comerica Bank

SWIFT# - MNBDUS33

Routing# -121137522
 Acct # - 1892029842

 

 

	
Sources and Uses of Cash at Closing
    	
 
    
	
 
    	
 
    
	
A.3 
    	
Payment   of Escrow Funds to Escrow Agent
    	
 
    	
1,375,000.00
    	
 
    
	
A.4 
    	
Payment   of Post Closing Payment to ISG
    	
 
    	
150,000.00
    	
 
    
	
B. 
    	
Term   Loan Payoff to ORIX
    	
 
    	
2,164,887.18
    	
 
    
	
C.1 
    	
Payment   of ORIX’s Origination Fee
    	
 
    	
71,250.00
    	
 
    
	
C.2 
    	
Payment of Gunderson Dettmer   Stough Villeneuve Franklin & Hachigian, LLP Fees and Expenses
    	
 
    	
50,000.00
    	
 
    
	
D.1 
    	
Payment   to Al Subbloie for Repurchase of Stock
    	
 
    	
1,259,097.00
    	
 
    
	
D.2.   
    	
Payment   to Rick Pontin for Repurchase of Stock
    	
 
    	
330,481.00
    	
 
    
	
D.3.   
    	
Payment   to Gary Martino for Repurchase of Stock
    	
 
    	
384,939.00
    	
 
    
	
D.4 
    	
Payment   to Al Rossini for Repurchase of Stock
    	
 
    	
128,790.00
    	
 
    
	
D.5 
    	
Payment   to Scott Snyder for Repurchase of Stock
    	
 
    	
120,934.00
    	
 
    
	
D.6 
    	
Payment   to Chris Mezzatesta for Repurchase of Stock
    	
 
    	
79,391.00
    	
 
    
	
D.7 
    	
Payment   to Paul Schmidt for Repurchase of Stock
    	
 
    	
135,149.00
    	
 
    
	
D.8 
    	
Payment   to Charles Gamble for Repurchase of Stock
    	
 
    	
154,949.00
    	
 
    
	
D.9 
    	
Payment   to Victor Nesi for Repurchase of Stock
    	
 
    	
378,055.00
    	
 
    
	
D.10   
    	
Payment   to Steve Shwartz for Repurchase of Stock
    	
 
    	
143,282.00
    	
 
    
	
D.11   
    	
Payment   to Lenny Goldberg for Repurchase of Stock
    	
 
    	
132,129.00
    	
 
    
	
D.12   
    	
Payment   to Joe Goldberg for Repurchase of Stock
    	
 
    	
123,066.00
    	
 
    
	
D.13   
    	
Payment   to Ken Spitzbard for Repurchase of Stock
    	
 
    	
28,172.00
    	
 
    
	
D.14   
    	
Payment   to Chris Fraser for Repurchase of Stock
    	
 
    	
93,018.00
    	
 
    
	
D.15   
    	
Payment   to Rae Fairfield for Repurchase of Stock
    	
 
    	
78,503.00
    	
 
    
	
D.16   
    	
Payment   to Bard Financial for Repurchase of Stock
    	
 
    	
29,097.00
    	
 
    
	
D.17   
    	
Payment   to Jay Steinberg for Repurchase of Stock
    	
 
    	
28,620.00
    	
 
    
	
D.18   
    	
Payment   to OCI Group for Repurchase of Stock
    	
 
    	
900,000.00
    	
 
    
	
D.19   
    	
Payment   to Aaron Konecky for Repurchase of Stock
    	
 
    	
11,448.00
    	
 
    
	
D.20   
    	
Payment   to Andrew Esposito for Repurchase of Stock
    	
 
    	
42,400.00
    	
 
    
	
D.21   
    	
Payment   to Jon Gassett for Repurchase of Stock
    	
 
    	
17,172.00
    	
 
    
	
D.22   
    	
Payment   to David Eldredge for Repurchase of Stock
    	
 
    	
6,106.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Uses
    	
 
    	
$
    	
20,040,935.18
    	
 
    
						

 

{Signature Page Follows]

 

 

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

 

 

	
TANGOE, INC.
    	
 
    	
ORIX VENTURE FINANCE LLC
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Albert R. Subbloie
    	
 
    	
By:
    	
/s/ Christopher L. Smith
    
	
 
    	
Name:
    	
Albert R. Subbloie
    	
 
    	
 
    	
Name: Christopher L. Smith
    
	
 
    	
Title:
    	
President and CEO
    	
 
    	
 
    	
Title: Authorized Representative
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
INVESTOR GROWTH CAPITAL LIMITED
    	
 
    	
INVESTOR GROWTH L.P.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Noah Walley
    	
 
    	
By:
    	
/s/ Noah Walley
    
	
 
    	
Name: Noah Walley
    	
 
    	
 
    	
Name: Noah Walley
    
	
 
    	
Title: Managing Director
    	
 
    	
 
    	
Title: Managing Director
    

 

 

 

Cash Payments at Closing/Payment Instructions:

 

	
Item
    	
 
    	
Amount
    	
 
    	
Payor
    	
 
    	
Payee
    	
 
    	
Payment Instructions
    	
 
    	
Notes
    	
 
    	
Federal Wire Transfer
   Confirmation No.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.1
    	
 
    	
$
    	
11,525,000.00
    	
 
    	
Purchaser
    	
 
    	
ISG
    	
 
    	
JP Morgan Chase

Account:   6012006543

US Routing No:   021000021 (Used for Wires)
    	
 
    	
Payment of   Purchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.2
    	
 
    	
$
    	
100,000.00
    	
 
    	
Purchaser
    	
 
    	
BillingIT
    	
 
    	
JP Morgan Chase

Account:   6012006543

US Routing No:   021000021 (Used for Wires)
    	
 
    	
Payment of   Purchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.3.
    	
 
    	
$
    	
1,375,000.00
    	
 
    	
Purchaser
    	
 
    	
Escrow Agent
    	
 
    	
U.S. Bank

ABA No.:  091000022

Corporate Trust   Services

Acct. No.:  173103321050

Attn:  Betty Hammer

Ref:  Tangoe/ISG Escrow
    	
 
    	
Payment of Escrow   Amount into Escrow Account
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.4
    	
 
    	
$
    	
150,000.00
    	
 
    	
Purchaser
    	
 
    	
ISG
    	
 
    	
JP Morgan Chase

Account:   6012006543

US Routing No:   021000021 (Used for Wires)
    	
 
    	
Payment of Post   Closing Payment - **PAYMENT
   WILL MADE NOVEMBER 28, 2008**
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
B
    	
 
    	
$
    	
2,164,887.18
    	
 
    	
Purchaser
    	
 
    	
ORIX
    	
 
    	
Netted out of   wire from ORIX to Purchaser
    	
 
    	
Payoff of   Existing Term Loan
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.1
    	
 
    	
$
    	
71,250.00
    	
 
    	
Purchaser
    	
 
    	
ORIX
    	
 
    	
Netted out of   wire from ORIX to Purchaser
    	
 
    	
Payment of ORIX’s   Origination Fee
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.2
    	
 
    	
$
    	
50,000.00
    	
 
    	
Purchaser
    	
 
    	
Gunderson
   Dettmer
    	
 
    	
Citibank F.S.B.,

One Sansome St.,   24th floor

San Francisco, CA   94104

Routing #:   321171184

SWIFT Code:   CITIUS33

Acct Name:   Gunderson Dettmer, et al, LLP

Account   No. 200019081

Notes: Invoice # [TO COME]
    	
 
    	
Payment of 
   Gunderson Dettmer’s Fees and Expenses
   per Section 6.6 of the Series F Convertible Preferred Stock Purchase   Agreement
    	
 
    	
 
    

 

 

	
Item
    	
 
    	
Amount
    	
 
    	
Payor
    	
 
    	
Payee
    	
 
    	
Payment Instructions
    	
 
    	
Notes
    	
 
    	
Federal Wire Transfer
   Confirmation No.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.1
    	
 
    	
$
    	
1,259,097.00
    	
 
    	
Purchaser
    	
 
    	
Al Subbloie
    	
 
    	
ABA number: 011   900 571

account name:   Albert R. Subbloie Jr

account number:   3850 0657 8455

 

Bank is Bank of   America
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.2
    	
 
    	
$
    	
330,481.00
    	
 
    	
Purchaser
    	
 
    	
Rick Pontin
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.3
    	
 
    	
$
    	
384,939.00
    	
 
    	
Purchaser
    	
 
    	
Gary Martino
    	
 
    	
Receiving Bank:   People’s United Bank

ABA Number:   221172186

Account Number:   0430126377

Account Name:   Gary R.. Martino
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.4
    	
 
    	
$
    	
128,790.00
    	
 
    	
Purchaser
    	
 
    	
Al Rossini
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.5
    	
 
    	
$
    	
120,934.00
    	
 
    	
Purchaser
    	
 
    	
Scott Snyder
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.6
    	
 
    	
79,391.00
    	
 
    	
Purchaser
    	
 
    	
Chris Mezzatesta
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.7
    	
 
    	
$
    	
135,149.00
    	
 
    	
Purchaser
    	
 
    	
Paul Schmidt
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.8
    	
 
    	
$
    	
154,949.00
    	
 
    	
Purchaser
    	
 
    	
Charles Gamble
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    

 

 

	
D.9
    	
 
    	
$
    	
378,055.00
    	
 
    	
Purchaser
    	
 
    	
Victor Nesi
    	
 
    	
JP Morgan Chase   Bank

Account Name:   Victor J. Nesi

Account #:   778916791

ABA #/SWF Code:   021000021
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.10
    	
 
    	
$
    	
143,282
    	
 
    	
Purchaser
    	
 
    	
Steve Shwartz
    	
 
    	
Wire funds to   J.P. Morgan Chase

Routing number:   021000021

For credit to:   National Financial Services LLC

Account number:   066196-221

For the benefit   of Steven Shwartz

For final credit   to: X45077259

Address: One   Chase Manhattan Plaza,

New York, NY   10005
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.11
    	
 
    	
$
    	
132,129.00
    	
 
    	
Purchaser
    	
 
    	
Leonard 
   Goldman
    	
 
    	
Bank: The Bank of New York

ABA   Number:   021000018

Beneficiary: Pershing LLC

Beneficiary   Account # 890-051238-5

Ultimate   Beneficiary:  Leonard J. Goldberg

Ultimate   Beneficiary Account #:  087-623054
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.12
    	
 
    	
$
    	
123,066.00
    	
 
    	
Purchaser
    	
 
    	
Joseph 
   Goldberg
    	
 
    	
Bank: The Bank of New York

ABA   Number:   021000018

Beneficiary: Pershing LLC

Beneficiary   Account #: 890-051238-5

Ultimate   Beneficiary:  Joseph M. Goldberg & Cynthia C. Goldberg, JTWROS

Ultimate   Beneficiary Account #:  087-516829
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.13
    	
 
    	
$
    	
28,172.00
    	
 
    	
Purchaser
    	
 
    	
Ken Spitzbard
    	
 
    	
Bank: The Bank of New York

ABA   Number:   021000018

Beneficiary: Pershing LLC

Beneficiary   Account #:   890-051238-5

Ultimate   Beneficiary:  Kenneth Spitzbard

Ultimate   Beneficiary Account #: 5NL-212706

 
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    

 

 

	
D.14
    	
 
    	
$
    	
93,018.00
    	
 
    	
Purchase
    	
 
    	
Chris Fraser
    	
 
    	
Bank:  MELLON BANK

PITTSBURGH, PA   15258-0001

ABA:       043000261

FOR CREDIT   TO:  MERRILL LYNCH

ACCOUNT#:   101-1730

FOR FURTHER CR

EDIT TO:

CHRISTOPHER   T. FRASER & KAREN C. FRASER

ACCOUNT   #  874-45558
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.15
    	
 
    	
$
    	
78,503.00
    	
 
    	
Purchaser
    	
 
    	
Rae Fairfield
    	
 
    	
Bank:  Wilmington Trust Company

Account   Holder:  Rae Ko Fairfield and Thomas L.   Fairfield

Account Number:   27852386

Routing Number:   031100092

Wire Transfer   Dept.: 302-651-1733
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.16
    	
 
    	
$
    	
29,097.00
    	
 
    	
Purchaser
    	
 
    	
Bard Financial   Service Profit Sharing Plan
    	
 
    	
Bank: The Bank of New York

ABA   Number:   021000018

Beneficiary: Pershing LLC

Beneficiary   Account #   890-051238-5

Ultimate   Beneficiary:  Bard Financial Services,   PSP

Ultimate   Beneficiary Account #: 5NL-212797
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.17
    	
 
    	
$
    	
28,620.00
    	
 
    	
Purchaser
    	
 
    	
Jay &   Melanie Steinberg
    	
 
    	
Bank:    HSBC Bank

ABA   Number:   021001088

Ultimate   Beneficiary:  Jay & Melanie Steinberg

Ultimate   Beneficiary Account Number: 626002249
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.18
    	
 
    	
$
    	
900,000.00
    	
 
    	
Purchaser
    	
 
    	
OCI Group
    	
 
    	
Bank Name :   Comerica Bank

ABA No :   072000096

Account Name :   OCI Chemical Corporation

Acct.No :   1851445658
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    

 

 

	
D.19
    	
 
    	
$
    	
11,448.00
    	
 
    	
Purchaser
    	
 
    	
Aaron Konecky
    	
 
    	
Commerce Bank

Routing#   031201360.

Account# 2842227

Account Name:   Aaron Konecky
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.20
    	
 
    	
$
    	
42,400.00
    	
 
    	
Purchaser
    	
 
    	
Andrew 
   Esposito
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.21
    	
 
    	
$
    	
17,172.00
    	
 
    	
Purchaser
    	
 
    	
Jon Gassett
    	
 
    	
Check
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.22
    	
 
    	
$
    	
6,106.00
    	
 
    	
Purchaser
    	
 
    	
David Eldredge
    	
 
    	
People’s  United Bank

ABA# 221172186

Acct# 0434089198

Name on account:

Stacey Cooper   Eldredge

David Eldredge
    	
 
    	
Payment of
   Repurchase Price
    	
 
    	
 
    

 

 

 

Limited Consent and Second Amendment

to Loan and Security Agreement

 

	
Borrowers:
    	
(1)    Tangoe, Inc.
    
	
 
    	
(2)    Traq Wireless, Inc.
    
	
 
    	
 
    
	
Date:
    	
December 23, 2008
    

 

 

This LIMITED CONSENT AND SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of the date set forth above by and among ORIX VENTURE FINANCE LLC, a Delaware limited liability company (“ORIX”), and TANGOE, INC., a Delaware corporation (“Tangoe”), and TRAQ WIRELESS, INC., a Delaware corporation (“Traq” and Tangoe hereinafter, jointly and severally, individually and collectively, “Borrower”).

 

RECITALS:

 

WHEREAS, Borrower and ORIX are parties to that certain Loan and Security Agreement dated March 9, 2007 as amended by a Limited Consent and First Amendment to Loan and Security Agreement dated July 28, 2008 (as from time to time further amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which ORIX has agreed to make loans and other extensions of credit to Borrower in accordance with the terms thereof;

 

WHEREAS, Tangoe, Internoded, Inc., a Delaware corporation (“Seller”), and the Stockholders of Seller identified therein are parties to a certain Asset Purchase Agreement, dated as of December 23, 2008 (the “Asset Purchase Agreement”), pursuant to which Tangoe has agreed to purchase certain assets from Seller on the terms and conditions set forth in the Asset Purchase Agreement (the “Acquisition”):

 

WHEREAS, in connection with the foregoing, Borrower has requested that ORIX consent to the consummation of the Acquisition and agree to amend the Loan Agreement as provided herein;

 

WHEREAS, ORIX has agreed to consent to the Acquisition and amend the Loan Agreement on the terms and subject to the conditions set forth herein;

 

 

WHEREAS, this Amendment shall constitute a Loan Document and capitalized terms used but not otherwise defined in this Amendment shall have the meanings described to them in the Loan Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1                Limited Consent.  In reliance upon the representations and warranties made by Borrower set forth in Section 3 below and subject to the prior satisfaction of the conditions to effectiveness set forth in Section 4 below, ORIX hereby consents to the consummation of the Acquisition in accordance with the terms of the Asset Purchase Agreement, delivered pursuant to Section 4(e) hereof and acknowledges that the consummation of the Acquisition in accordance with the terms of the Asset Purchase Agreement, delivered pursuant to Section 4(e) hereof, shall not constitute a Default under Sections 4.5(ii) and 4.5(xiii) of the Loan Agreement.  Without limiting the foregoing, in the event Seller exercises its option to unwind the Acquisition in accordance with the terms of Section 2.11 of the Asset Purchase Agreement, delivered pursuant to Section 4(e) hereof, and provided that Seller has taken all actions required under such Section 2.11, ORIX hereby consents to Tangoe’s transfer of the Purchased Assets (as defined in the Asset Purchase Agreement) to Seller free and clear of ORIX’s liens and security interests thereon.  For purposes hereof, the parties hereto hereby acknowledge and agree that the consent provided herein is a limited consent and shall not constitute a consent to any other agreement or matter or a waiver of any other provision of the Loan Agreement or any other Loan Document.

 

Section 2                Amendments to Loan Agreement.

 

(a)           Section 2 (Interest) of the Schedules is hereby deleted in its entirety and replaced with Section 2 as set forth on Exhibit A attached hereto.

 

(b)           Section 6 (Financial Covenants) of the Schedule is hereby deleted in its entirety and replaced with Section 6 (Financial Covenants) as set forth on Exhibit B attached hereto.

 

(c)           Section 3 of the Loan Agreement is hereby amended by adding the following new Sections at the end thereof:

 

“3.11       Landlord/Bailee Waiver.  Borrower shall use its best efforts to deliver, or caused to be delivered, from Borrower’s landlords, on or before January 23, 2009, to ORIX, a duly executed landlord waiver or bailee’s waiver, as applicable, for each location where any Collateral is located, including, but not limited to, the property located at (i) 1440 Main Street, Waltham, MA, (ii) 20 Waterview Boulevard, Parsippany-Troy Hills, NJ, and (iii) 152 Madison Avenue, 18th Floor, New York, NY, each in form and substance acceptable to ORIX.

 

3.12         Solvency Certificate.  On or before January 31, 2009, ORIX shall have received a certificate, duly executed by the Chief Financial Officer of Borrower, as to the solvency of Borrower and its subsidiary following the consummation of 

 

 

the transactions contemplated by the Acquisition (as defined in the Limited Consent and Second Amendment to Loan and Security Agreement, dated as of December 23, 2008, between Borrower and ORIX (the “Second Amendment”)) and under the Asset Purchase Agreement (as defined in the Second Amendment), with projected, pro forma, cash flow and unaudited financial statement of the Borrower and its subsidiaries, in form and substance acceptable to ORIX.

 

3.13         Deposit Account Control Agreements.  On or before January 23, 2009, Borrower shall have delivered, or caused to be delivered, a Deposit Account Control Agreement for each account maintained by Borrower with Comerica Bank, in form and substance acceptable to ORIX, duly executed by Borrower and Comerica Bank.”

 

(d)           Section 8 of the Loan Agreement is hereby amended by inserting the following definitions in proper alphabetical order:

 

“Base Rate” means a per annum interest rate equal to the greater of (a) the Prime Rate, (b) the LIBOR Rate plus two and one-half percent (2.50%) or (c) three and one-half percent (3.50%).

 

“LIBOR Rate” means (i) the three-month London Interbank Offered Rate for deposits in U.S. dollars, as shown each day in The Wall Street Journal (Eastern Edition) under the caption “Money Rates - London Interbank Offered Rates (LIBOR)”; or (ii) if the Wall Street Journal does not publish such rate, the offered one-month rate for deposits in U.S. dollars which appears on the Reuters Screen LIBO Page as of 10:00 a.m., New York time, each day, provided that if at least two rates appear on the Reuters Screen LIBO Page on any day, the “LIBOR Rate” for such day shall be the arithmetic mean of such rates; or (iii) if the Wall Street Journal does not publish such rate on a particular day and no such rate appears on the Reuters Screen LIBO Page on such day, the rate as comparable to the foregoing, as determined in good faith by ORIX (which determination shall be conclusive absent manifest error).”

 

Section 3                Representations and Warranties.  To induce ORIX to enter into this Amendment, Borrower represents and warrants that:

 

(a)           No Default.  After giving effect to this Amendment and the Acquisition, no Default or Event of Default shall have occurred to be continuing as of the date hereof;

 

(b)           Representations and Warranties.  As of the date hereof and, after giving effect to this Amendment and the transactions contemplated hereby, all representations and warranties by (i) Borrower contained in the Loan Agreement, and (ii) Tangoe contained in the Asset Purchase Agreement, are, in each case true, accurate and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date;

 

(c)           Corporate Authority.  (i) The execution, delivery and performance by Borrower of this Amendment and the Asset Purchase Agreement are within its corporate powers 

 

 

and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) this Amendment is the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with its terms and (iii) neither the execution, delivery or performance by Borrower of this Amendment or the Asset Purchase Agreement (1) violates any law or regulation, or any other or decree of any governmental authority, (2) conflicts with or results in the breach or termination of, constitutes a default under or accelerates any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which Borrower is a party or by which Borrower or any of its property is bound, (3) results in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral, (4) violates or conflicts with the articles of incorporation or bylaws of Borrower, or (5) requires the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; and

 

(d)           Event of Default.  By its signature below, Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in any material respect as of the date when made or deemed made.

 

Section 4                Conditions Precedent.  The effectiveness of this Amendment, and the obligation of ORIX to make any Loans, is subject to the following conditions precedent:

 

(a)           Amendment.  ORIX shall have received a true and complete copy of this Amendment, duly executed by Borrower.

 

(b)           Subordination Agreement.  ORIX shall have received a true and complete copy of a Subordination Agreement, duly executed by Seller, as subordinated creditor, in favor of ORIX, as senior lender, in form and substance acceptable to ORIX.

 

(c)           Intellectual Property Security Agreement.  ORIX shall have received a true and complete copy of the Intellectual Property Security Agreement, in the form attached as Exhibit C hereto, duly executed by Tangoe.

 

(d)           Representation and Warranties.  ORIX shall have received a true and complete copy of an updated Representation and Warranties signed by Borrower, which reflects the Acquisition and in form and substance satisfactory to ORIX.

 

(e)           Solvency Certificate.  ORIX shall have received a certificate, duly executed by the Chief Financial Officer of Borrower, dated as of the date hereof, as to the solvency of Borrower and its subsidiary following the consummation of the transactions contemplated hereunder and under the Asset Purchase Agreement, in form and substance satisfactory to ORIX.

 

(f)            Asset Purchase Agreement.  ORIX shall have received a true and complete copy of the Asset Purchase Agreement, together with true and complete copies of all exhibits and schedules thereto and all other documents related thereto, each in form and substance reasonably satisfactory to ORIX, duly executed and delivered by each of the parties thereto.

 

(g)           Acquisition.  Tangoe and Seller shall have satisfied all terms and conditions to the Acquisition in accordance with the terms and conditions of the Asset Purchase 

 

 

Agreement (including, satisfaction or waiver of all conditions precedent as set forth in Sections 6 and 7 of the Asset Purchase Agreement), as in effect on the date hereof, without waiver, modification, or delay in the performance thereof.

 

(h)           Secretary’s Certificates.  ORIX shall have received a certificate from each Borrower, executed by Borrower’s corporate secretary or an assistant secretary, dated as of the date hereof (i) attaching resolutions of Borrower’s Board of Directors, approving and authorizing the execution, delivery and performance of the Amendment and the Asset Purchase Agreement and the transactions to be consummated in connection therewith, which certificate shall be in form and substance satisfactory to ORIX and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded, (ii) attaching certified copies of Borrower’s organizational documents, certificate of good standing, and foreign qualifications, and (ii) stating that (A) all of the representations and warranties of Borrower contained in the Loan Documents and the Asset Purchase Agreement are true and correct in all material respects as of such date, and (B) no event has occurred and is continuing, which constitutes an Event of Default.

 

(i)            Legal Opinion.  ORIX shall have received an opinion of Shipman & Goodwin LLP, counsel to each Borrower, in form and substance satisfactory to ORIX.

 

(j)            Purchased Assets.  Borrower shall have delivered, or caused to be delivered, any and all documentation reasonably requested by ORIX in order to perfect a first priority lien in favor of ORIX on the Purchased Assets (as defined in the Asset Purchase Agreement) that constitute Collateral.

 

(k)           Release of Existing Liens.  Borrower shall have delivered, or caused to be delivered, any and all lien terminations, intellectual property releases, or other documentation reasonably requested by ORIX to release any existing liens on the Purchased Assets (as defined in the Asset Purchase Agreement), each in form and substance acceptable to ORIX.

 

(l)            [Intentionally Omitted].

 

(m)          Cost and Expenses.  Borrower shall have reimbursed ORIX for all out-of-pocket costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by ORIX in connection with this Amendment.

 

(n)           No Default.  No Default or Event of Default under the Loan Agreement, as amended hereby, or the Asset Purchase Agreement, shall have occurred and be continuing.

 

(o)           Warranties and Representations.  After giving effect to this Amendment, the Acquisition and the transactions contemplated hereby and thereby, the warranties and representations of Borrower contained in the Loan Documents shall be true and correct as of the effective date hereof, with the same effect as though made on such date, except to the extent that such warranties and representations expressly relate to an earlier date, and all of such representations and warranties (except those relating to an earlier date) are hereby remade by Borrower as of the date hereof.

 

 

(p)           Material Adverse Change.  ORIX shall have determined, in its sole discretion, that there is no Material Adverse Change (financial or otherwise).

 

(q)           Other Requirements.  ORIX shall have received such other documentation and information which it shall have requested pursuant to this Amendment.

 

Section 5                Reference to and Effect on Loan Documents.

 

(a)           Ratification.  Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of the Loan Agreement or any other Loan Document.  Borrower hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

 

(b)           Intellectual Property Security Agreements.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of the Intellectual Property Security Agreement, dated as of March 9, 2007, between Borrower and ORIX (the “IP Agreement”), and acknowledges, confirms and agrees that the IP Agreement contains an accurate and complete listing of all Intellectual Property (other than the new Intellectual Property which is subject to the Intellectual Property Security Agreement being delivered in accordance with Section 4(c) of this Agreement), and shall remain in full force and effect.

 

(c)           Representations.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Representations, and acknowledges, confirms and agrees the disclosures and information Borrower provided to ORIX in the Representations have not changed, as of the date hereof.

 

(d)           No Waiver.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of ORIX under the Loan Agreement or any of the other Loan Documents, other than to the extent expressly set forth herein or previously waived in writing.

 

(e)           References.  Upon the effectiveness of this Amendment each reference in (a) the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import and (b) any other Loan Document to “the Agreement” or “the Loan Agreement” shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Loan Agreement as amended hereto.

 

Section 6                Releases.  In further consideration of ORIX’s execution of this Amendment, Borrower for itself and on behalf of its respective successors (including, without limitation, any trustees acting on behalf of Borrower and any debtor-in-possession with respect to Borrower), assigns, subsidiaries and affiliates, hereby forever releases ORIX and their respective successors, assigns, parents, subsidiaries, affiliates, officers, employees directors, agents and attorneys (collectively, the “Releasees”‘) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”), that 

 

 

Borrower may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take prior to the date this Amendment was executed with respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations, other than arising out of such Releasee’s gross negligence or willful misconduct, as finally determined by a non-appealable court of competent jurisdiction.  This provision shall survive and continue in full force and effect whether or not Borrower shall satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement including payment in full of all Obligations.

 

Section 7                Miscellaneous.

 

(a)           Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Borrower and ORIX and their respective successors and assigns.

 

(b)           ENTIRE AGREEMENT.  THIS AMENDMENT REPRESENTS THE ENTIRE, FINAL AGREEMENT AND UNDERSTANDING CONCERNING THE SUBJECT MATTER HEREOF BETWEEN THE PARTIES HERETO, AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS, UNDERSTANDINGS, NEGOTIATIONS AND DISCUSSIONS, REPRESENTATIONS, WARRANTIES, COMMITMENTS, PROPOSALS, OFFERS AND CONTRACTS CONCERNING THE SUBJECT MATTER HEREOF, WHETHER ORAL OR WRITTEN. THIS AMENDMENT, ANY SUPPLEMENTS HERETO, AND ANY INSTRUMENTS OR DOCUMENTS DELIVERED OR TO BE DELIVERED IN CONNECTION HEREWITH MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

(c)           Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)           Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

(e)           Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.

 

 

(f)            Incorporation of Loan Agreement Provisions.  The provisions contained in Section 9.9 (Governing Law) and Section 9.10 (Jury Waiver) of the Loan Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

[Signatures follow]

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed on the date first written above.

 

Borrower:

 

	
TANGOE, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
President or Vice   President
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
Secretary or Assistant   Secretary
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TRAQ WIRELESS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
President or Vice   President
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
Secretary or Assistant   Secretary
    	
 
    
	
 
    	
 
    	
 
    
	
ORIX:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ORIX VENTURE FINANCE LLC
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Kevin P. Sheehan
    	
 
    
	
 
    	
Kevin P. Sheehan,
    	
 
    
	
 
    	
President 
    	
 
    

 

 

EXHIBIT A

 

	
2. INTEREST.
    	
 
    
	
 
    	
 
    
	
Interest Rate
    	
 
    
	
(Section 1.3):
    	
The Term Loan shall bear interest at an interest rate equal to the   Base Rate in effect from time to time, plus 5.75% per annum.
    
	
 
    	
 
    
	
 
    	
The Revolving Loans shall bear interest at an interest rate equal to   the Base Rate in effect from time to time, plus 3.0% per annum.
    
	
 
    	
 
    
	
 
    	
Interest shall be calculated on the basis of a 360-day year for the   actual number of days elapsed. “Base Rate” shall have the meaning set forth   in Section 8 of this Agreement.
    

 

 

EXHIBIT B

 

	
6.   FINANCIAL   COVENANTS.
    	
 
    
	
(Section 4.8):
    	
 
    
	
 
    	
Borrower shall comply with the following financial covenants.   Compliance shall be measured quarterly, except as otherwise provided below.
    
	
 
    	
 
    
	
EBITDA:
    	
Borrowers’ EBITDA determined on a consolidated basis, shall not be   less than the following amounts during the following periods:
    
	
 
    	
 
    
	
 
    	
Period
    	
 
    	
Minimum
   EBITDA
    	
 
    
	
 
    	
3 months ended December 31, 2008
    	
 
    	
$
    	
400,000
    	
 
    
	
 
    	
6 months ended March 31, 2009
    	
 
    	
$
    	
1,000,000
    	
 
    
	
 
    	
9 months ended June 31, 2009
    	
 
    	
$
    	
2,000,000
    	
 
    
	
 
    	
12 months ended September 30, 2009
    	
 
    	
$
    	
3,000,000
    	
 
    
	
 
    	
12 months ended December 31, 2009
    	
 
    	
$
    	
4,500,000
    	
 
    
	
 
    	
 
    
	
 
    	
For each 12 month period ending on March 31, June 31,   September 30 and December 31 thereafter, through and including   December 31, 2011, the minimum amount of EBITDA for each such period   shall be an amount negotiated for in good faith, and agreed to in writing, by   Borrower and ORIX and which is based upon the most recent budget, operating   plan and other financial information of Borrower provided to ORIX, provided,   however, if Borrower and ORIX do not reach agreement for the minimum   amount of EBITDA for any such period, Borrower and ORIX hereby agree that the   minimum amount of EBITDA for such period will be equal to the sum of $250,000   plus the minimum amount of EBITDA established for the immediately preceding   period, provided, further, however, that any shortfall   in Borrower’s EBITDA will be waived by ORIX if it receives evidence within 30   days of the end of the applicable period, satisfactory to ORIX, that either   (i) Borrower has raised Subordinated Debt in an amount equal to any such   shortfall, or (ii) Borrower maintained on the last day of the applicable   period, unrestricted cash and cash equivalents, in an account or accounts   with respect to which ORIX has a first priority security interest and has   obtained an account control agreement or account control agreements, in form   and 
    

 

 

	
 
    	
substance satisfactory to ORIX, of not less than $6,000,000.00.
    
	
 
    	
 
    
	
Minimum   Liquidity:
    	
Borrower shall maintain at all times, unrestricted cash and cash   equivalents, in an account or accounts with respect to which ORIX has a first   priority security interest and has obtained an account control agreement or   account control agreements, in form and substance satisfactory to ORIX, of not   less than $4,000,000.00. Following ORIX’s review of the Borrower’s audited   financial statements for fiscal year ended December 31, 2008, ORIX may   in its sole and absolute discretion (but shall have no obligation to do so),   eliminate this “Minimum Liquidity” covenant upon written notice thereof from   ORIX to Borrower.
    
	
 
    	
 
    
	
Definitions:
    	
“EBITDA” shall mean for any period (the “Applicable Period”),   the net income of Borrower for the Applicable Period, before interest, taxes,   depreciation and other non-cash amortization expenses (including stock   compensation expenses and impairment of intangibles) as determined in   accordance with GAAP.
    
	
 
    	
 
    
	
 
    	
“Subordinated Debt” is indebtedness incurred by Borrower   subordinated to all of Borrower’s now or hereafter indebtedness to ORIX   (pursuant to a subordination, intercreditor, or other similar agreement in   form and substance satisfactory to ORIX entered into between ORIX and the   other creditor), on terms acceptable to ORIX.
    

 

 

EXHIBIT C

 

Intellectual Property Security Agreement

 

[See attached]

 

 

Third Amendment
 to Loan and Security Agreement

 

	
Borrowers:
    	
(1)     Tangoe, Inc.
    
	
 
    	
(2)     Traq   Wireless, Inc.
    
	
 
    	
 
    
	
Date:
    	
March 9, 2009
    

 

This THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of the date set forth above by and among ORIX VENTURE FINANCE LLC, a Delaware limited liability company (“ORIX”), TANGOE, INC., a Delaware corporation (“Tangoe”), and TRAQ WIRELESS, INC., a Delaware corporation (“Traq”; Traq and Tangoe are hereinafter referred to, jointly and severally, individually and collectively, as “Borrower”).

 

RECITALS:

 

WHEREAS, Borrower and ORIX are parties to that certain Loan and Security Agreement dated March 9, 2007, as amended by the Limited Consent and First Amendment to Loan and Security Agreement dated July 28, 2008, and the Limited Consent and Second Amendment to Loan and Security Agreement dated December 23, 2008 (as from time to time further amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which ORIX has agreed to make loans and other extensions of credit to Borrower in accordance with the terms thereof;

 

WHEREAS, in accordance with Section 9.9 of the Loan Agreement, Borrower and ORIX desire to amend the Loan Agreement as provided herein; and

 

WHEREAS, this Amendment shall constitute a Loan Document and capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Loan Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1                Amendments to Loan Agreement.

 

(a)           Section 1(b)(4) (Revolving Loan Maturity Date) of the Schedule is hereby deleted in its entirety and replaced with the following:

 

 

“(4)         Revolving Loan Maturity Date.  Subject to the terms and conditions set forth in this Agreement, Revolving Loans may be borrowed, repaid and re-borrowed until June 30, 2009 (the “Revolving Loan Maturity Date”) on which date the entire unpaid principal balance of the Revolving Loans and all accrued and unpaid interest thereon shall be due and payable.  After the Revolving Loan Maturity Date, no further Revolving Loans shall be made.”

 

(b)           Section 2 (Interest) of the Schedule is hereby deleted in its entirety and replaced with Section 2 as set forth on Exhibit A attached hereto.

 

(c)           Section 5 (Reporting) of the Schedule is hereby deleted in its entirety and replaced with Section 5 as set forth on Exhibit B attached hereto.

 

(d)           Section 2.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

 

“2.1 Security Interest.

 

(a)           To secure the payment and performance of all of the Obligations when due, Borrower hereby grants to ORIX a security interest in all of the following (collectively, the “Collateral”): all right, title and interest of Borrower in and to the following, whether now owned or hereafter arising or acquired and wherever located: all Accounts; all Inventory; all Equipment; all General Intangibles (including without limitation all Intellectual Property and Deposit Accounts); all Investment Property; all Other Property; and any and all claims, rights and interests in any of the above, and all guaranties and security for any of the above, and all substitutions and replacements for, additions, accessions, attachments, accessories, and improvements to, and proceeds (including proceeds of any insurance policies, proceeds of proceeds and claims against third parties) of, any and all of the above, and all Borrower’s books relating to any of the above, including without limitation the assets identified in the Representations.  Notwithstanding the foregoing, once all Obligations related to the Term Loan have been paid in full, the Collateral shall not include the Released Intellectual Property.

 

(b)           Notwithstanding the foregoing, upon the occurrence of (i) Borrower entering into a substitute working capital revolving facility (the “Replacement Revolving Facility”), with an entity other than ORIX that is reasonably acceptable to ORIX (the “Replacement Revolving Lender”), which Replacement Revolving Facility, and the credit agreement and other loan documents delivered in connection therewith (collectively, the “Replacement Revolving Loan Documents”), are each in form and substance reasonably acceptable to ORIX in all respects (including, but not limited to, the maximum availability for all outstanding borrowings 

 

 

and other financial accommodations thereunder, the maximum aggregate commitment of the Replacement Revolving Lender thereunder, the borrowing base thereunder and the advance rate thereunder), (ii) the repayment in cash and in full of all principal and accrued and unpaid interest on all outstanding Revolving Loans, and (iii) the irrevocable termination of ORIX’s commitment to make Revolving Loans under this Agreement, ORIX shall (x) subordinate its security interest in the portion of the Collateral consisting solely of cash, accounts receivable and Inventory, to the security interest of the Replacement Revolving Lender in such assets, and (y) permit Borrower to grant the Replacement Revolving Lender a security interest in all Collateral other than cash, accounts receivable and Inventory so long as such security interest is expressly subordinate to ORIX’s security interest in such Collateral, in each case pursuant to the terms of an intercreditor agreement between ORIX and the Replacement Revolving Lender, in form and substance satisfactory to ORIX.”

 

(e)           Section 4 of the Loan Agreement is hereby amended by adding the following new Section 4.13 at the end thereof:

 

“4.13 Revolving Loan Fee.  If on or before June 30, 2009 (a) each of the events specified in clauses (i), (ii) and (iii) of Section 2.1(b) of this Agreement have not been satisfied to the satisfaction of ORIX, and (b) ORIX and the Replacement Revolving Lender have not entered into and delivered an intercreditor agreement, in form and substance satisfactory to ORIX, Borrower shall pay to ORIX, for the account of ORIX, a fee in the amount of $30,000 (the “Revolving Loan Fee”).  The Revolving Loan Fee shall be deemed fully earned on June 30, 2009 if each of the above conditions are not satisfied and shall be nonrefundable upon its receipt by ORIX.”

 

(f)            Section 8 of the Loan Agreement is hereby amended by inserting the following definitions in the proper alphabetical order:

 

“Replacement Revolving Facility” has the meaning set forth in Section 2.1.

 

“Replacement Revolving Lender” has the meaning set forth in Section 2.1.

 

“Replacement Revolving Loan Documents” has the meaning set forth in Section 2.1.

 

“Revolving Loan Fee” has the meaning set forth in Section 4.13.

 

 

Section 2                                               Representations and Warranties.  To induce ORIX to enter into this Amendment, Borrower represents and warrants that:

 

(a)                                  No Default.  After giving effect to this Amendment, no Default or Event of Default shall have occurred to be continuing as of the date hereof;

 

(b)                                 Representations and Warranties.  As of the date hereof and, after giving effect to this Amendment and the transactions contemplated hereby, all representations and warranties by Borrower contained in the Loan Agreement and the other Loan Documents, are, in each case true, accurate and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date;

 

(c)                                  Corporate Authority.  (i) The execution, delivery and performance by Borrower of this Amendment is within its corporate powers and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) this Amendment is the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with its terms and (iii) the execution, delivery or performance by Borrower of this Amendment does not (1) violate any law or regulation, or any other or decree of any governmental authority, (2) conflict with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which Borrower is a party or by which Borrower or any of its property is bound, (3) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral, (4) violate or conflict with the articles of incorporation or bylaws of Borrower, or (5) require the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; and

 

(d)                                 Event of Default.  By its signature below, Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in any material respect as of the date when made or deemed made.

 

Section 3                                               Conditions Precedent.  The effectiveness of this Amendment, and the obligation of ORIX to make any Loans, is subject to the following conditions precedent:

 

(a)                                  Amendment.  ORIX shall have received a true and complete copy of this Amendment, duly executed by Borrower.

 

(b)                                 Secretary’s Certificates.

 

(i)                                     ORIX shall have received a certificate from Traq, executed by Traq’s corporate secretary or an assistant secretary, dated as of the date hereof (A) attaching resolutions of Traq’s Board of Directors, approving and authorizing the execution, delivery and performance of the Amendment and the transactions to be consummated in connection therewith, which certificate shall be in form and substance satisfactory to ORIX and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded, (B) attaching certified copies of Traq’s organizational documents, certificate of good standing, and foreign qualifications, and (C) stating that (1) after giving effect to the Amendment and the transactions 

 

 

contemplated hereby, the representations and warranties of Traq contained in the Loan Documents are true and correct in all material respects as of the effective date of the Amendment, with the same effect as though made on such date, except to the extent that such representations and warranties expressly relate to an earlier date, (2) no event has occurred and is continuing, which constitutes a Default or an Event of Default, and (3) there is no Material Adverse Change (financial or otherwise).

 

(ii)                                  ORIX shall have received a certificate from Tangoe, executed by Tangoe’s corporate secretary or an assistant secretary, dated as of the date hereof (A) attaching certified copies of Tangoe’s organizational documents, certificate of good standing, and foreign qualifications, and (B) stating that (1) after giving effect to the Amendment and the transactions contemplated hereby, the representations and warranties of Tangoe contained in the Loan Documents are true and correct in all material respects as of the effective date of the Amendment, with the same effect as though made on such date, except to the extent that such representations and warranties expressly relate to an earlier date, (2) no event has occurred and is continuing, which constitutes a Default or an Event of Default, and (3) there is no Material Adverse Change (financial or otherwise).

 

(c)                                  Amendment Fee.  Borrower shall pay to ORIX, for the account of ORIX, an amendment fee in the amount of $20,000 (the “Amendment Fee”), which Amendment Fee shall be deemed fully earned upon the execution of this Amendment and nonrefundable upon its receipt by ORIX.

 

(d)                                 Cost and Expenses.  Borrower shall have reimbursed ORIX for all out-of-pocket costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by ORIX in connection with this Amendment.

 

(e)                                  No Default.  No Default or Event of Default under the Loan Agreement, as amended hereby, shall have occurred and be continuing.

 

(f)                                    Warranties and Representations.  After giving effect to this Amendment and the transactions contemplated hereby, the warranties and representations of Borrower contained in the Loan Documents shall be true and correct as of the effective date hereof, with the same effect as though made on such date, except to the extent that such warranties and representations expressly relate to an earlier date, and all of such representations and warranties (except those relating to an earlier date) are hereby remade by Borrower as of the date hereof.

 

(g)                                 Material Adverse Change.  ORIX shall have determined, in its sole discretion, that there is no Material Adverse Change (financial or otherwise).

 

(h)                                 Other Requirements.  ORIX shall have received such other documentation and information which it shall have requested pursuant to this Amendment.

 

Section 4                                               Reference to and Effect on Loan Documents.

 

(a)                                  Ratification.  Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation 

 

 

of the Loan Agreement or any other Loan Document.  Borrower hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

 

(b)                                 Representations.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Representations, and acknowledges, confirms and agrees the disclosures and information Borrower provided to ORIX in the Representations dated as of December 23, 2008, have not changed, as of the date hereof.

 

(c)                                  No Waiver.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of OREX under the Loan Agreement or any of the other Loan Documents.

 

(d)                                 References.  Upon the effectiveness of this Amendment each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import and (b) any other Loan Document to “the Agreement” or “the Loan Agreement” shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Loan Agreement as amended hereto.

 

Section 5                                               Releases.  In further consideration of ORIX’s execution of this Amendment, Borrower for itself and on behalf of its respective successors (including, without limitation, any trustees acting on behalf of Borrower and any debtor-in-possession with respect to Borrower), assigns, subsidiaries and affiliates, hereby forever releases OREX and their respective successors, assigns, parents, subsidiaries, affiliates, officers, employees directors, agents and attorneys (collectively, the “Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”), that Borrower may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take prior to the date this Amendment was executed with respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations, other than arising out of such Releasee’s gross negligence or willful misconduct, as finally determined by a non-appealable court of competent jurisdiction.  This provision shall survive and continue in full force and effect whether or not Borrower shall satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement including payment in full of all Obligations.

 

Section 6                                               Authorization and Ratification of Amendment.  On or before March 11, 2009, ORIX shall have received a certificate from Tangoe, executed by Tangoe’s corporate secretary or an assistant secretary, dated as of the date of such delivery, attaching resolutions of Tangoe’s Board of Directors, approving and authorizing the execution, delivery and performance of the Amendment and the transactions to be consummated in connection therewith, and ratifying any activities previously taken in connection therewith, which certificate shall be in form and substance satisfactory to ORIX and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded (the “Certificate of Authorization”).  Notwithstanding anything to the contrary in the Loan Agreement or the other Loan Documents, 

 

 

the Borrower and ORIX hereby agree that it shall constitute an Event of Default if ORIX does not receive the Certificate of Authorization on or before March 11, 2009.

 

Section 7                                               Miscellaneous.

 

(a)                                  Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Borrower and ORIX and their respective successors and assigns.

 

(b)                                 ENTIRE AGREEMENT.  THIS AMENDMENT REPRESENTS THE ENTIRE, FINAL AGREEMENT AND UNDERSTANDING CONCERNING THE SUBJECT MATTER HEREOF BETWEEN THE PARTIES HERETO, AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS, UNDERSTANDINGS, NEGOTIATIONS AND DISCUSSIONS, REPRESENTATIONS, WARRANTIES, COMMITMENTS, PROPOSALS, OFFERS AND CONTRACTS CONCERNING THE SUBJECT MATTER HEREOF, WHETHER ORAL OR WRITTEN.  THIS AMENDMENT, ANY SUPPLEMENTS HERETO, AND ANY INSTRUMENTS OR DOCUMENTS DELIVERED OR TO BE DELIVERED IN CONNECTION HEREWITH MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

(c)                                  Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)                                 Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

(e)                                  Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(f)                                    Incorporation of Loan Agreement Provisions.  The provisions contained in Section 9.9 (Governing Law) and Section 9.10 (Jury Waiver) of the Loan Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

[Signatures follow]

 

 

	
 
    	
IN WITNESS ‘WHEREOF, this Amendment has been   duly executed on the date first written above.
    
	
 
    	
 
    
	
 
    	
Borrower:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TANGOE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
 
    	
 
    	
President or Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By 
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
 
    	
 
    	
Secretary or Assistant Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TRAQ WIRELESS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
 
    	
 
    	
President or Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By 
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
 
    	
 
    	
Secretary or Assistant Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
ORIX:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ORIX VENTURE FINANCE LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin P. Sheehan
    	
 
    
	
 
    	
 
    	
 
    	
Kevin P. Sheehan,
    
	
 
    	
 
    	
 
    	
President and CEO
    

 

 

EXHIBIT A

 

	
2. INTEREST.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Interest   Rate
    	
 
    	
 
    
	
(Section 1.3):
    	
 
    	
The Term Loan shall bear interest at an interest rate equal to the   greater of (i) the Base Rate in effect from time to time, plus 5.75% per   annum, and (ii) the interest rate charged at any time in accordance with   the Replacement Revolving Loan Documents.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Revolving Loans shall bear interest at an interest rate equal to   the Base Rate in effect from time to time, plus 5.75% per annum.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest shall be calculated on the basis of a 360-day year for the   actual number of days elapsed. “Base Rate” shall have the meaning set forth   in Section 8 of this Agreement.
    

 

 

EXHIBIT B

 

	
5. REPORTING
    	
 
    	
 
    
	
    (Section 4.2):
    	
 
    	
Borrower, at its expense, shall provide ORIX with the following:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)          Monthly reconciliations of   accounts receivable agings (aged by invoice date) and borrowing base report,   within thirty days after the end of each month;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b)         Monthly accounts payable   agings, aged by invoice date, if any, within thirty days after the end of   each month;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c)          Monthly financial   statements within thirty days after the end of each month;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(d)         Annual, unqualified   financial statements, audited by independent certified public accountants   acceptable to ORIX (provided that, as of the date of this Agreement,   Borrower’s certified public accounting firm is Deloitte & Touche   USA, LLC, which is acceptable to ORIX), within one hundred fifty days after   the end of each fiscal year of Borrower;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(e)          Compliance certificates   within fifteen days after the end of each month, confirming that no Defaults   have occurred, at such intervals and times as ORIX shall specify;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(f)            Within five (5) days   of ORIX’s request, transaction reports, general ledger, and outstanding or   held check registers;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(g)         Budgets, sales   projections, operating plans or other financial information reasonably   requested by ORIX;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(h)         No later than   April 15, 2009, confirmation of whether or not Borrower has received an   executed commitment letter from one or more entities (each a “Proposed   Replacement Revolving Lender”), which commitment letter shall specify the   terms and conditions 
    

 

 

	
 
    	
 
    	
for the Replacement   Revolving Loan Documents;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)             No later than   April 30, 2009, confirmation of whether or not Borrower has selected and   engaged a Proposed Replacement Revolving Lender, which ORIX has indicated in   writing is reasonably acceptable to it, and if such a Proposed Replacement   Revolving Lender has been selected and engaged, delivery to ORIX of the   applicable commitment letter (with all exhibits and attachments relating   thereto), executed by such Proposed Replacement Revolving Lender and   Borrower;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(j)             No later than May 29,   2009, confirmation of whether or not the Proposed Replacement Revolving   Lender selected and engaged in accordance with clause (i) above has   received internal credit approval for the Replacement Revolving Loan   Documents;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(k)          No later than   June 15, 2009, confirmation of whether or not a draft of any Replacement   Revolving Loan Document has been distributed to Borrower, and if any such   draft has been distributed, delivery to ORIX of each such draft; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(l)             No later than   June 30, 2009, confirmation of whether or not (i) final versions of   the Replacement Revolving Loan Documents, each in form and substance   reasonably satisfactory to ORIX, have been executed and delivered by Borrower   and the Proposed Replacement Revolving Lender selected and engaged in   accordance with clause (i) above, and (ii) all of the conditions to   effectiveness of the Replacement Revolving Loan Documents have been   satisfied, and if such final versions of the Replacement Revolving Loan   Documents have been fully executed, delivery to ORIX of each such executed   Replacement Revolving Loan Document.
    

 

 

Fourth Amendment 
 to Loan and Security Agreement

 

	
Borrowers:
    	
(1) Tangoe, Inc.
    
	
 
    	
(2) Traq Wireless, Inc.
    
	
 
    	
 
    
	
Date:
    	
June 29, 2009
    

 

This FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of the date set forth above by and among ORIX VENTURE FINANCE LLC, a Delaware limited liability company (“ORIX”).  TANGOE, INC., a Delaware corporation (“Tangoe”), and TRAQ WIRELESS, INC., a Delaware corporation (“Traq”; Traq and Tangoe are hereinafter referred to, jointly and severally, individually and collectively, as “Borrower”).

 

RECITALS:

 

WHEREAS, Borrower and ORIX are parties to that certain Loan and Security Agreement dated March 9, 2007, as amended by the Limited Consent and First Amendment to Loan and Security Agreement dated July 28, 2008, the Limited Consent and Second Amendment to Loan and Security Agreement dated December 23, 2008 and the Third Amendment to Loan and Security Agreement dated March 9, 2009 (as from time to time further amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which ORIX has agreed to make loans and other extensions of credit to Borrower in accordance with the terms thereof;

 

WHEREAS, in accordance with Section 9.9 of the Loan Agreement, Borrower and ORIX desire to amend the Loan Agreement as provided herein; and

 

WHEREAS, this Amendment shall constitute a Loan Document and capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Loan Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1                                               Amendments to Loan Agreement.

 

(a)                                  Section 1(b)(4) (Revolving Loan Maturity Date) of the Schedule is hereby deleted in its entirety and replaced with the following:

 

 

“(4) Revolving Loan Maturity Date.  Subject to the terms and conditions set forth in this Agreement, Revolving Loans may be borrowed, repaid and re-borrowed until June 30, 2010 (the “Revolving Loan Maturity Date”) on which date the entire unpaid principal balance of the Revolving Loans and all accrued and unpaid interest thereon shall be due and payable.  After the Revolving Loan Maturity Date, no further Revolving Loans shall be made.”

 

(b)                                 Section 2 (Interest) of the Schedule is hereby deleted in its entirety and replaced with Section 2 as set forth on Exhibit A attached hereto.

 

(c)                                  Subsections (h) - (l) of Section 5 of the Schedule are hereby deleted in their entirety.

 

Section 2                                               Representations and Warranties.  To induce ORIX to enter into this Amendment, Borrower represents and warrants that:

 

(a)                                  No Default.  After giving effect to this Amendment, no Default or Event of Default shall have occurred to be continuing as of the date hereof;

 

(b)                                 Representations and Warranties.  As of the date hereof and, after giving effect to this Amendment and the transactions contemplated hereby, all representations and warranties by Borrower contained in the Loan Agreement and the other Loan Documents, are, in each case true, accurate and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date;

 

(c)                                  Corporate Authority.  (i) The execution, delivery and performance by Borrower of this Amendment is within its corporate powers and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) this Amendment is the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with its terms and (iii) the execution, delivery or performance by Borrower of this Amendment does not (1) violate any law or regulation, or any other or decree of any governmental authority, (2) conflict with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which Borrower is a party or by which Borrower or any of its property is bound, (3) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral, (4) violate or conflict with the articles of incorporation or bylaws of Borrower, or (5) require the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; and

 

(d)                                 Event of Default.  By its signature below, Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in any material respect as of the date when made or deemed made.

 

Section 3                                               Conditions Precedent.  The effectiveness of this Amendment, and the obligation of ORIX to make any Loans, is subject to the following conditions precedent:

 

 

(a)                                  Amendment.  ORIX shall have received a true and complete copy of this Amendment, duly executed by Borrower.

 

(b)                                 Secretary’s Certificates.

 

(i)                                     ORIX shall have received a certificate from Traq, executed by Traq’s corporate secretary or an assistant secretary, dated as of the date hereof (A) attaching resolutions of Traq’s Board of Directors, approving and authorizing the execution, delivery and performance of the Amendment and the transactions to be consummated in connection therewith, which certificate shall be in form and substance satisfactory to ORIX and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded, (B) attaching certified copies of Traq’s organizational documents, certificate of good standing, and foreign qualifications, and (C) stating that (1) after giving effect to the Amendment and the transactions contemplated hereby, the representations and warranties of Traq contained in the Loan Documents are true and correct in all material respects as of the effective date of the Amendment, with the same effect as though made on such date, except to the extent that such representations and warranties expressly relate to an earlier date, (2) no event has occurred and is continuing, which constitutes a Default or an Event of Default, and (3) there is no Material Adverse Change (financial or otherwise).

 

(ii)                                  ORIX shall have received a certificate from Tangoe, executed by Tangoe’s corporate secretary or an assistant secretary, dated as of the date hereof (A) attaching resolutions of Tangoe’s Board of Directors, approving and authorizing the execution, delivery and performance of the Amendment and the transactions to be consummated in connection therewith, which certificate shall be in form and substance satisfactory to ORIX and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded, (B) attaching certified copies of Tangoe’s organizational documents, certificate of good standing, and foreign qualifications, and (C) stating that (1) after giving effect to the Amendment and the transactions contemplated hereby, the representations and warranties of Tangoe contained in the Loan Documents are true and correct in all material respects as of the effective date of the Amendment, with the same effect as though made on such date, except to the extent that such representations and warranties expressly relate to an earlier date, (2) no event has occurred and is continuing, which constitutes a Default or an Event of Default, and (3) there is no Material Adverse Change (financial or otherwise),

 

(c)                                  Amendment Fee.  Borrower shall pay to ORIX, for the account of ORIX, an amendment fee in the amount of $20,000 (the “Amendment Fee”), which Amendment Fee shall be deemed fully earned upon the execution of this Amendment and nonrefundable upon its receipt by ORIX.

 

(d)                                 Cost and Expenses.  Borrower shall have reimbursed ORIX for all out-of- pocket costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by ORIX hi connection with this Amendment.

 

(e)                                  No Default.  No Default or Event of Default under the Loan Agreement, as amended hereby, shall have occurred and be continuing.

 

 

(f)                                    Warranties and Representations.  After giving effect to this Amendment and the transactions contemplated hereby, the warranties and representations of Borrower contained in the Loan Documents shall be true and correct as of the effective date hereof, with the same effect as though made on such date, except to the extent that such warranties and representations expressly relate to an earlier date, and all of such representations and warranties (except those relating to an earlier date) are hereby remade by Borrower as of the date hereof.

 

(g)                                 Material Adverse Change.  ORIX shall have determined, in its sole discretion, that there is no Material Adverse Change (financial or otherwise).

 

(h)                                 Other Requirements.  ORIX shall have received such other documentation and information which it shall have requested pursuant to this Amendment.

 

Section 4                                               Reference to and Effect on Loan Documents.

 

(a)                                  Ratification.  Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of the Loan Agreement or any other Loan Document.  Borrower hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

 

(b)                                 Representations.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Representations, and acknowledges, confirms and agrees the disclosures and information Borrower provided to ORIX in the Representations dated as of December 23, 2008, have not changed, as of the date hereof.

 

(c)                                  No Waiver.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of ORIX under the Loan Agreement or any of the other Loan Documents.

 

(d)                                 References.  Upon the effectiveness of this Amendment each reference in (a) the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import and (b) any other Loan Document to “the Agreement” or “the Loan Agreement” shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Loan Agreement as amended hereto.

 

Section 5                                               Releases.  In further consideration of ORIX’s execution of this Amendment, Borrower for itself and on behalf of its respective successors (including, without limitation, any trustees acting on behalf of Borrower and any debtor-in-possession with respect to Borrower), assigns, subsidiaries and affiliates, hereby forever releases ORIX and their respective successors, assigns, parents, subsidiaries, affiliates, officers, employees directors, agents and attorneys (collectively, the “Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”), that Borrower may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take prior to the date this Amendment was executed with 

 

 

respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations, other than arising out of such Releasee’s gross negligence or willful misconduct, as finally determined by a non-appealable court of competent jurisdiction.  This provision shall survive and continue in full force and effect whether or not Borrower shall satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement including payment in full of all Obligations.

 

Section 6                                               Authorization and Ratification of Amendment.  On or before July 31, 2009, ORIX shall have received a certificate from Tangoe, executed by Tangoe’s corporate secretary or an assistant secretary, dated as of the date of such delivery, attaching resolutions of Tangoe’s Board of Directors, approving and authorizing the execution, delivery and performance of the Amendment and the transactions to be consummated in connection therewith, and ratifying any activities previously taken in connection therewith, which certificate shall be in form and substance satisfactory to ORIX and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded (the “Certificate of Authorization”).  Notwithstanding anything to the contrary in the Loan Agreement or the other Loan Documents, the Borrower and ORIX hereby agree that it shall constitute an Event of Default if ORIX does not receive the Certificate of Authorization on or before July 31, 2009.

 

Section 7                                               Miscellaneous.

 

(a)                                  Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Borrower and ORIX and their respective successors and assigns.

 

(b)                                 ENTIRE AGREEMENT.  THIS AMENDMENT REPRESENTS THE ENTIRE, FINAL AGREEMENT AND UNDERSTANDING CONCERNING THE SUBJECT MATTER HEREOF BETWEEN THE PARTIES HERETO, AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS,  UNDERSTANDINGS, NEGOTIATIONS  AND  DISCUSSIONS, REPRESENTATIONS, WARRANTIES, COMMITMENTS, PROPOSALS, OFFERS AND CONTRACTS CONCERNING THE SUBJECT MATTER HEREOF, WHETHER ORAL OR WRITTEN.  THIS AMENDMENT, ANY SUPPLEMENTS HERETO, AND ANY INSTRUMENTS OR DOCUMENTS DELIVERED OR TO BE DELIVERED IN CONNECTION HEREWITH MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

(c)                                  Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)                                 Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

 

(e)                                  Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(f)                                    Incorporation of Loan Agreement Provisions.  The provisions contained in Section 9.9 (Governing Law) and Section 9.10 (Jury Waiver) of the Loan Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

[Signatures follow]

 

 

	
 
    	
IN WITNESS WHEREOF, this Amendment   has been duly executed on the date first written above.
    
	
 
    
	
Borrower:
    
	
 
    
	
 
    	
TANGOE, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
 
    	
President or Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
 
    	
Secretly or Assistant Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TRAQ WIRELESS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Albert R. Subbloie
    	
 
    
	
 
    	
 
    	
President or Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Gary R. Martino
    	
 
    
	
 
    	
 
    	
Secretly or Assistant Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
ORIX:
    	
 
    
	
 
    	
 
    
	
 
    	
ORIX VENTURE FINANCE LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Kevin P. Sheehan
    	
 
    
	
 
    	
 
    	
Kevin P. Sheehan
    
	
 
    	
 
    	
President and CEO
    

 

 

EXHIBIT A

 

2.  INTEREST.

 

	
Interest Rate  
   (Section 1.3):
    	
 
    	
The Term Loan shall bear interest   at an interest rate equal to the greatest of (i) the Base Rate in effect from   time to time, plus 6.00% per annum, (ii) 10.25% per annum and (iii) the interest   rate charged at any time in accordance with the Replacement Revolving Loan Documents.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Revolving Loans shall bear   interest at an interest rate equal to the greater of (i) the Base Rate in effect   from time to time, plus 6.00% per annum and (ii) 10.25% per annum.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest shall be calculated   on the basis of a 360-day year for the actual number of days elapsed. “Base Rate”   shall have the meaning set forth in Section 8 of this Agreement.
    

 

 

Fifth Amendment 

to Loan and Security Agreement

 

	
Borrowers:
    	
 
    	
(1) Tangoe, Inc.
    
	
 
    	
 
    	
(2) Traq   Wireless, Inc.
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
April 15,   2010
    

 

This FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of the date set forth above by and among ORIX VENTURE FINANCE LLC, a Delaware limited liability company (“ORIX”), TANGOE, INC., a Delaware corporation (“Tangoe”), and TRAQ WIRELESS, INC., a Delaware corporation (“Traq”; Traq and Tangoe are hereinafter referred to, jointly and severally, individually and collectively, as “Borrower”).

 

RECITALS:

 

WHEREAS, Borrower and ORIX are parties to that certain Loan and Security Agreement dated March 9, 2007, as amended by the Limited Consent and First Amendment to Loan and Security Agreement dated July 28, 2008, the Limited Consent and Second Amendment to Loan and Security Agreement dated December 23, 2008, the Third Amendment to Loan and Security Agreement dated March 9, 2009, and the Fourth Amendment to Loan Agreement dated June 29, 2009 (as from time to time further amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which ORIX has agreed to make loans and other extensions of credit to Borrower in accordance with the terms thereof;

 

WHEREAS, in connection with the foregoing, Borrower has requested that ORIX agree to amend the Loan Agreement as provided herein;

 

WHEREAS, ORIX has agreed to amend the Loan Agreement on the term and subject to the conditions set forth herein; and

 

WHEREAS, this Amendment shall constitute a Loan Document and capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Loan Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

 

Section 1                                               Amendment to Loan Agreement.  Section 6 (Financial Covenants) of the Schedule is hereby deleted in its entirety and replaced with Section 6 (Financial Covenants) as set forth on Exhibit A attached hereto.

 

Section 2                                               Waiver.  ORIX hereby waives Borrower’s existing default under the Loan Agreement by virtue of Borrower’s failure to comply with the Minimum Liquidity financial covenant set forth in Section 6 of the Schedule thereof (as required prior to this Amendment) as of the month ended September 30, 2009. ORIX’s waiver of Borrower’s compliance of said affirmative covenant shall apply only to the foregoing specific period.

 

Section 3                                               Representations and Warranties.  To induce ORIX to enter into this Amendment, Borrower represents and warrants that:

 

(a)                                  No Default.  After giving effect to this Amendment, no Default or Event of Default shall have occurred to be continuing as of the date hereof;

 

(b)                                 Representations and Warranties.  As of the date hereof and, after giving effect to this Amendment and the transactions contemplated hereby, all representations and warranties by Borrower contained in the Loan Agreement and the other Loan Documents, are, in each case true, accurate and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date;

 

(c)                                  Corporate Authority,  (i) The execution, delivery and performance by Borrower of this Amendment is within its corporate powers and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) this Amendment is the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with its terms and (iii) the execution, delivery or performance by Borrower of this Amendment does not (1) violate any law or regulation, or any other or decree of any governmental authority, (2) conflict with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which Borrower is a party or by which Borrower or any of its property is bound, (3) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral, (4) violate or conflict with the articles of incorporation or bylaws of Borrower, or (5) require the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; and

 

(d)                                 Event of Default.  By its signature below, Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in any material respect as of the date when made or deemed made.

 

Section 4                                               Conditions Precedent.  The effectiveness of this Amendment, and the obligation of ORIX to make any Loans, is subject to the following conditions precedent:

 

(a)                                  Amendment.  ORIX shall have received a true and complete copy of this Amendment, duly executed by Borrower.

 

2

 

(b)                                 Amendment Fee.  Borrower shall pay to ORIX, for the account of ORIX, an amendment fee in the amount of $10,000 (the “Amendment Fee”), which Amendment Fee shall be deemed fully earned upon the execution of this Amendment and nonrefundable upon its receipt by ORIX.

 

(c)                                  Cost and Expenses.  Borrower shall have reimbursed ORIX for all out-of- pocket costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by ORIX in connection with this Amendment.

 

(d)                                 No Default.  No Default or Event of Default under the Loan Agreement, as amended hereby, shall have occurred and be continuing.

 

(e)                                  Warranties and Representations.  After giving effect to this Amendment and the transactions contemplated hereby, the warranties and representations of Borrower contained in the Loan Documents shall be true and correct as of the effective date hereof, with the same effect as though made on such date, except to the extent that such warranties and representations expressly relate to an earlier date, and all of such representations and warranties (except those relating to an earlier date) are hereby remade by Borrower as of the date hereof.

 

(f)                                    Material Adverse Change.  ORIX shall have determined, in its sole discretion, that there is no Material Adverse Change (financial or otherwise).

 

(g)                                 Other Requirements.  ORIX shall have received such other documentation and information which it shall have requested pursuant to this Amendment.

 

Section 5                                               Reference to and Effect on Loan Documents.

 

(a)                                  Ratification.  Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of the Loan Agreement or any other Loan Document.  Borrower hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

 

(b)                                 Representations.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Representations, and acknowledges, confirms and agrees the disclosures and information Borrower provided to ORIX in the Representations dated as of December 23, 2008, have not changed, as of the date hereof.

 

(c)                                  No Waiver.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of ORIX under the Loan Agreement or any of the other Loan Documents.

 

(d)                                 References.  Upon the effectiveness of this Amendment each reference in (a) the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import and (b) any other Loan Document to “the Agreement” or “the Loan Agreement” shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Loan Agreement as amended hereto.

 

3

 

Section 6                                               Releases.  In further consideration of ORIX’s execution of this Amendment, Borrower for itself and on behalf of its respective successors (including, without limitation, any trustees acting on behalf of Borrower and any debtor-in-possession with respect to Borrower), assigns, subsidiaries and affiliates, hereby forever releases ORIX and their respective successors, assigns, parents, subsidiaries, affiliates, officers, employees directors, agents and attorneys (collectively, the “Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”), that Borrower may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take prior to the date this Amendment was executed with respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations, other than arising out of such Releasee’s gross negligence or willful misconduct, as finally determined by a non-appealable court of competent jurisdiction. This provision shall survive and continue in full force and effect whether or not Borrower shall satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement including payment in full of all Obligations.

 

Section 7                                               Miscellaneous.

 

(a)                                  Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Borrower and ORIX and their respective successors and assigns.

 

(b)                                 ENTIRE AGREEMENT.  THIS AMENDMENT REPRESENTS THE ENTIRE, FINAL AGREEMENT AND UNDERSTANDING CONCERNING THE SUBJECT MATTER HEREOF BETWEEN THE PARTIES HERETO, AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS, UNDERSTANDINGS, NEGOTIATIONS AND DISCUSSIONS, REPRESENTATIONS, WARRANTIES, COMMITMENTS, PROPOSALS, OFFERS AND CONTRACTS CONCERNING THE SUBJECT MATTER HEREOF, WHETHER ORAL OR WRITTEN.  THIS AMENDMENT, ANY SUPPLEMENTS HERETO, AND ANY INSTRUMENTS OR DOCUMENTS DELIVERED OR TO BE DELIVERED IN CONNECTION HEREWITH MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

(c)                                  Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)                                 Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

4

 

(e)                                  Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(f)                                    Incorporation of Loan Agreement Provisions.  The provisions contained in Section 9.9 (Governing Law) and Section 9.10 (Jury Waiver) of the Loan Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

[Signatures follow]

 

5

 

IN WITNESS WHEREOF, this Amendment has been duly executed on the date first written above.

 

	
Borrower:
    	
 
    
	
 
    	
 
    
	
TANGOE, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Albert R. Subbloie, Jr.
    	
 
    
	
 
    	
President   or Vice President Albert R. Subbloie, Jr.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Gary R. Martino
    	
 
    
	
 
    	
Secretary   or Assistant Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
TRAQ WIRELESS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Albert R. Subbloie, Jr.
    	
 
    
	
 
    	
President   or Vice President Albert R. Subbloie, Jr.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Gary R. Martino
    	
 
    
	
 
    	
Secretary   or Assistant Secretary Gary R. Martino
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ORIX:
    	
 
    
	
 
    	
 
    
	
ORIX VENTURE FINANCE LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Kevin P. Sheehan
    	
 
    
	
 
    	
Kevin   P. Sheehan,
    	
 
    
	
 
    	
President   and CEO
    	
 
    

 

 

EXHIBIT A

 

2.              FINANCIAL COVENANTS 

(SECTION 4.8)

 

	
 
    	
 
    	
Borrower   shall comply with the following financial covenants. Compliance shall be   measured quarterly, except as otherwise provided below.
    
	
 
    	
 
    	
 
    
	
EBITDA:
    	
 
    	
Borrowers’   EBITDA determined on a consolidated basis, shall not be less than the   following amounts during the following periods:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Period
    	
 
    	
Minimum
   EBITDA
    
	
 
    	
 
    	
12 months ended March 31, 2010
    	
 
    	
$
    	
4,700,000
    
	
 
    	
 
    	
12 months ended June 30, 2010
    	
 
    	
$
    	
4,900,000
    
	
 
    	
 
    	
12 months ended September 31, 2010
    	
 
    	
$
    	
4,800,000
    
	
 
    	
 
    	
12 months ended December 31, 2010
    	
 
    	
$
    	
4,900,000
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For   each 12 month period ending on March 31, June 31, September 30   and December 31 thereafter, through and including December 31,   2012, the minimum amount of EBITDA for each such period shall be an amount   negotiated for in good faith, and agreed to in writing, by Borrower and ORIX   and which is based upon the most recent budget, operating plan and other   financial information of Borrower provided to ORIX, provided, however,   if Borrower and ORIX do not reach agreement for the minimum amount of EBITDA   for any such period, Borrower and ORIX hereby agree that the minimum amount   of EBITDA for such period will be equal to the sum of $250,000 plus the   minimum amount of EBITDA established for the immediately preceding period, provided,   further, however, that any shortfall in Borrower’s EBITDA will   be waived by ORIX if it receives evidence within 30 days of the end of the   applicable period, satisfactory to ORIX, that either (i) Borrower has   raised Subordinated Debt in an amount equal to any such shortfall, or   (ii) Borrower maintained on the last day of the applicable period, unrestricted   cash and cash equivalents, in an account or accounts with respect to which   ORIX has a first priority security interest and has obtained an account   control agreement or account control agreements, in form and substance   satisfactory to ORIX, of not less than $6,000,000.00.
    

 

 

	
 
    	
 
    	
 
    
	
Minimum Liquidity:
    	
 
    	
Borrower   shall maintain at all times, unrestricted cash and cash equivalents, in an   account or accounts with respect to which ORIX has a first priority security   interest and has obtained an account control agreement or account control   agreements, in form and substance satisfactory to ORIX, of not less than   $3,000,000.00.
    
	
 
    	
 
    	
 
    
	
Definitions:
    	
 
    	
“EBITDA”   shall mean for any period (the “Applicable Period”), the net income of   Borrower for the Applicable Period, before interest, taxes, depreciation and   other non-cash amortization expenses (including stock compensation expenses   and impairment of intangibles) as determined in accordance with GAAP.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Subordinated   Debt” is indebtedness incurred by Borrower subordinated to all of   Borrower’s now or hereafter indebtedness to ORIX (pursuant to a   subordination, intercreditor, or other similar agreement in form and   substance satisfactory to ORIX entered into between ORIX and the other   creditor), on terms acceptable to ORIX.
    

 

 

Sixth Amendment 
 to Loan and Security Agreement

 

	
Borrowers:
    	
 
    	
(1) Tangoe, Inc.
    
	
 
    	
 
    	
(2) Traq   Wireless, Inc.
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
June 29,   2010 (the “Sixth Amendment Date”)
    

 

This SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of the date set forth above by and among ORIX VENTURE FINANCE LLC, a Delaware limited liability company (“ORIX”), TANGOE, INC., a Delaware corporation (“Tangoe”), and TRAQ WIRELESS, INC., a Delaware corporation (“Traq”; Traq and Tangoe are hereinafter referred to, jointly and severally, individually and collectively, as “Borrower”).

 

RECITALS:

 

WHEREAS, Borrower and ORIX are parties to that certain Loan and Security Agreement dated March 9, 2007, as amended by the Limited Consent and First Amendment to Loan and Security Agreement dated July 28, 2008, the Limited Consent and Second Amendment to Loan and Security Agreement dated December 23, 2008, the Third Amendment to Loan and Security Agreement dated March 9, 2009, the Fourth Amendment to Loan Agreement dated June 29, 2009, and the Fifth Amendment to Loan Agreement dated as of April 15, 2010 (as from time to time further amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which ORIX has agreed to make loans and other extensions of credit to Borrower in accordance with the terms thereof;

 

WHEREAS, in connection with the foregoing, Borrower has requested that ORIX agree to amend the Loan Agreement as provided herein;

 

WHEREAS, ORIX has agreed to amend the Loan Agreement on the terms and subject to the conditions set forth herein; and

 

WHEREAS, this Amendment shall constitute a Loan Document and capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Loan Agreement.

 

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1                Amendment to Loan Agreement.

 

(a)           Section l(b)(4) (Revolving Loan Maturity Date) of the Schedule is hereby deleted in its entirety and replaced with the following:

 

“(4)         Revolving Loan Maturity Date.  Subject to the terms and conditions set forth in this Agreement, Revolving Loans may be borrowed, repaid and re-borrowed until June 30, 2011 (the “Revolving Loan Maturity Date”) on which date the entire unpaid principal balance of the Revolving Loans and all accrued and unpaid interest thereon shall be due and payable in full.  After the Revolving Loan Maturity Date, no further Revolving Loans shall be made.”

 

(b)           Section 2 (Interest) of the Schedule is hereby deleted in its entirety and replaced with Section 2 as set forth on Exhibit A attached hereto.

 

Section 2                Additional Facility Fee.  A fully earned, non-refundable facility fee of Thirty Thousand Dollars ($30,000) (the “Additional Facility Fee”) is earned as of the date hereof and shall be payable on the date which is ninety (90) days from Sixth Amendment Date (the “Additional Facility Fee Payment Date”).  Notwithstanding the foregoing, ORIX agrees to waive the Additional Facility Fee if all outstanding obligations relating to the Revolving Loans are paid in full and the Revolving Loans are terminated, prior to the Additional Facility Fee Payment Date.

 

Section 3                Representations and Warranties.  To induce ORIX to enter into this Amendment, Borrower represents and warrants that:

 

(a)           No Default.  After giving effect to this Amendment, no Default or Event of Default shall have occurred to be continuing as of the date hereof;

 

(b)           Representations and Warranties.  As of the date hereof and, after giving effect to this Amendment and the transactions contemplated hereby, all representations and warranties by Borrower contained in the Loan Agreement and the other Loan Documents, are, in each case true, accurate and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date;

 

(c)           Corporate Authority.           (i) The execution, delivery and performance by Borrower of this Amendment is within its corporate powers and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) this Amendment is the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with its terms and (iii) the execution, delivery or performance by Borrower of this Amendment does not (1) violate any law or regulation, or any other or decree of any governmental authority, (2) conflict with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to

 

2

 

which Borrower is a party or by which Borrower or any of its property is bound, (3) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral, (4) violate or conflict with the articles of incorporation or bylaws of Borrower, or (5) require the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; and

 

(d)           Event of Default.  By its signature below, Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in any material respect as of the date when made or deemed made.

 

Section 4                Conditions Precedent.  The effectiveness of this Amendment, and the obligation of ORIX to make any Loans, is subject to the following conditions precedent:

 

(a)           Amendment.  ORIX shall have received a true and complete copy of this Amendment, duly executed by Borrower.

 

(b)           Amendment Fee.  Borrower shall pay to ORIX, for the account of ORIX, an amendment fee in the amount of $20,000 (the “Amendment Fee”), which Amendment Fee shall be deemed fully earned upon the execution of this Amendment and nonrefundable upon its receipt by ORIX.

 

(c)           Cost and Expenses.  Borrower shall have reimbursed ORIX for all out-of-pocket costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by ORIX in connection with this Amendment.

 

(d)           No Default.  No Default or Event of Default under the Loan Agreement, as amended hereby, shall have occurred and be continuing.

 

(e)           Warranties and Representations.  After giving effect to this Amendment and the transactions contemplated hereby, the warranties and representations of Borrower contained in the Loan Documents shall be true and correct as of the effective date hereof, with the same effect as though made on such date, except to the extent that such warranties and representations expressly relate to an earlier date, and all of such representations and warranties (except those relating to an earlier date) are hereby remade by Borrower as of the date hereof.

 

(f)            Material Adverse Change.  ORIX shall have determined, in its sole discretion, that there is no Material Adverse Change (financial or otherwise).

 

(g)           Other Requirements.  ORIX shall have received such other documentation and information which it shall have requested pursuant to this Amendment.

 

Section 5                Reference to and Effect on Loan Documents.

 

(a)           Ratification.  Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of the Loan Agreement or any other Loan Document.  Borrower hereby ratifies and reaffirms

 

3

 

each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

 

(b)           Representations.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Representations, and acknowledges, confirms and agrees the disclosures and information Borrower provided to ORIX in the Representations dated as of December 23, 2008, have not changed, as of the date hereof.

 

(c)           No Waiver.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of ORIX under the Loan Agreement or any of the other Loan Documents.

 

(d)           References.  Upon the effectiveness of this Amendment each reference in (a) the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import and (b) any other Loan Document to “the Agreement” or “the Loan Agreement” shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Loan Agreement as amended hereto.

 

Section 6                Releases.  In further consideration of ORIX’s execution of this Amendment, Borrower for itself and on behalf of its respective successors (including, without limitation, any trustees acting on behalf of Borrower and any debtor-in-possession with respect to Borrower), assigns, subsidiaries and affiliates, hereby forever releases ORIX and their respective successors, assigns, parents, subsidiaries, affiliates, officers, employees directors, agents and attorneys (collectively, the “Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of action (whether at law or in equity) and obligation:) of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”‘), that Borrower ma)’ have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take prior to the date this Amendment was executed with respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations, other than arising out of such Releasee’s gross negligence or willful misconduct, as finally determined by a non-appealable court of competent jurisdiction.  This provision shall survive and continue in full force and effect whether or not Borrower shall satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement including payment in full of all Obligations.

 

Section 7                Miscellaneous.

 

(a)           Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Borrower and ORIX and their respective successors and assigns.

 

(b)           ENTIRE AGREEMENT.  THIS AMENDMENT REPRESENTS THE ENTIRE, FINAL AGREEMENT AND UNDERSTANDING CONCERNING THE SUBJECT MATTER HEREOF BETWEEN THE PARTIES HERETO, AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS.  UNDERSTANDINGS, NEGOTIATIONS AND DISCUSSIONS, REPRESENTATIONS, WARRANTIES, COMMITMENTS, PROPOSALS, OFFERS AND CONTRACTS CONCERNING THE SUBJECT MATTER HEREOF, WHETHER ORAL OR

 

4

 

WRITTEN.  THIS AMENDMENT, ANY SUPPLEMENTS HERETO, AND ANY INSTRUMENTS OR DOCUMENTS DELIVERED OR TO BE DELIVERED IN CONNECTION HEREWITH MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

(c)           Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)           Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

(e)           Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(f)            Incorporation of Loan Agreement Provisions.  The provisions contained in Section 9.9 (Governing Law) and Section 9.10 (Jury Waiver) of the Loan Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

[Signatures follow]

 

5

 

IN WITNESS WHEREOF, this Amendment has been duly executed on the date first written above.

 

Borrower:

 

	
TANGOE, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Albert R. Subbloie, Jr.
    	
 
    
	
 
    	
President   or Vice President
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Gary R. Martino
    	
 
    
	
 
    	
Secretary   or Assistant Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
TRAQ WIRELESS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Albert R. Subbloie, Jr.
    	
 
    
	
 
    	
President   or Vice President
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Gary R. Martino
    	
 
    
	
 
    	
Secretary   or Assistant Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ORIX:
    	
 
    
	
 
    	
 
    
	
ORIX VENTURE FINANCE LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Kevin P. Sheehan
    	
 
    
	
 
    	
Kevin   P. Sheehan,
    	
 
    
	
 
    	
President   and CEO
    	
 
    

 

 

EXHIBIT A

 

	
2.   INTEREST.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Interest Rate
    (Section 1.3):
    	
 
    	
The   Term Loan shall bear interest at an interest rate equal to the greatest of   (i) the Base Rate in effect from time to time, plus 6.00% per annum,   (ii) 10.25% per annum and (iii) the interest rate charged at any   time in accordance with the Replacement Revolving Loan Documents.

 

The   Revolving Loans shall bear interest at an interest rate equal to the greater   of (i) the Base Rate in effect from time to time, plus 4.50% per annum   and (ii) 8.50% per annum. 

 

Interest   shall be calculated on the basis of a 360-day year for the actual number of   days elapsed. “Base Rate” shall have the meaning set forth in Section 8   of this Agreement.
    

 

 

Seventh Amendment
 to Loan and Security Agreement

 

Borrower:                                                                                       Tangoe, Inc.

 

Date:                                                                                                                   January 21, 2011

 

This SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of the date set forth above by and between ORIX VENTURE FINANCE LLC, a Delaware limited liability company (“ORIX”) and TANGOE, INC., a Delaware corporation (“Borrower”).  (Capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Loan Agreement.  This Amendment shall constitute a “Loan Document” for all purposes of the Loan Agreement.)

 

RECITALS

 

A.                                   Borrower and ORIX are parties to that certain Loan and Security Agreement dated March 9, 2007, as amended by the following;

 

Limited Consent and First Amendment to Loan and Security Agreement dated July 28, 2008,

 

Limited Consent and Second Amendment to Loan and Security Agreement dated December 23, 2008,

 

Third Amendment to Loan and Security Agreement dated March 9, 2009,

 

Fourth Amendment to Loan Agreement dated June 29, 2009

 

Fifth Amendment to Loan Agreement dated April 15, 2010; and

 

Sixth Amendment to Loan and Security Agreement dated June 29, 2010

 

(as from time to time further amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which ORIX has agreed to make loans and other extensions of credit to Borrower in accordance with the terms thereof;

 

B.                                     Borrower has requested that ORIX amend the Loan Agreement as provided herein and ORIX is willing to do so on the term and subject to the conditions set forth herein

 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.  Amendment to Schedule; Loan Amount; Interest Rate; Financial Covenants.  Sections 1, 2 and 6 of the Schedule are hereby deleted and replaced with the Sections 1, 2 and 6 on Exhibit A hereto.

 

2.  Prepayment.  Section 6.2 of the Loan Agreement is hereby amended in its entirety to read as follow:

 

“6.2 Prepayment.  Borrower shall have the option of prepaying the principal amount of the Loan, prior to the principal due dates set forth in the Schedule, in whole or in part, provided that Borrower concurrently pays ORIX (i) all accrued and unpaid interest on the principal so prepaid and (ii) a prepayment fee equal to 2.00% of the amount prepaid if prepayment occurs on or prior to January 21, 2012, and 1.00% of the amount prepaid if prepayment occurs after January 21, 2012.  Said prepayment fee shall be due from Borrower to ORIX upon any prepayment of the principal of the Loan, including without limitation any prepayment as a result of an Event of Default or the exercise of any rights or remedies by ORIX following the same.  Prepayments of the Loan shall be applied to the principal installments due on the Loan in the inverse order of their maturity.”

 

3.  Amended Representations.  References in the Loan Agreement to the “Representations” shall, effective on the date hereof, be deemed to refer to the Amended Representations dated January 21, 2011, being executed and delivered by Borrower to ORIX concurrently herewith (which reflect consummation of the HCL Acquisition (as defined in Exhibit A hereto).  Prior to consummation of the Telwares Acquisition, Borrower shall execute and deliver to ORIX further Amended Representations, which reflect consummation of the Telwares Acquisition, and upon receipt by ORIX of the same, and written confirmation by ORIX that the same are in form and substance acceptable to it, references in the Loan Agreement to the “Representations” shall be deemed to refer to such Amended Representations.

 

4.  Fee.  In consideration for ORIX entering into this Amendment, Borrower shall concurrently pay ORIX a fee in the amount of $125,000, which shall be non-refundable and in addition to all interest and other fees payable to ORIX under the Loan Documents.

 

5.  Warrant.  Borrower shall concurrently issue to ORIX Finance Equity Investors, LP, a Delaware limited partnership, a seven-year warrant to purchase 625,000 shares of Series F Preferred Stock of Borrower at a purchase price of $1.177 per share, on the terms set forth in the Warrant to Purchase Stock being executed by ORIX and Borrower concurrently.

 

2

 

6.  Cost and Expenses.  Borrower shall reimburse ORIX for all out-of-pocket costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by ORIX in connection with this Amendment.

 

7.  Representations and Warranties.  To induce ORIX to enter into this Amendment, Borrower represents and warrants that:

 

(a)                                  No Default.  After giving effect to this Amendment, no Default or Event of Default shall have occurred to be continuing as of the date hereof;

 

(b)                                 Representations and Warranties.  As of the date hereof and, after giving effect to this Amendment and the transactions contemplated hereby, all representations and warranties by Borrower contained in the Loan Agreement and the other Loan Documents, are, in each case true, accurate and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date, except to the extent such representations and warranties specifically relate to an earlier date, and except that references in the Loan Agreement to the “Representations” shall be deemed to refer to the Amended Representations as provided in Section 3 above;

 

(c)                                  Corporate Authority.  (i) The execution, delivery and performance by Borrower of this Amendment is within its corporate powers and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) this Amendment is the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with its terms and (iii) the execution, delivery or performance by Borrower of this Amendment does not (1) violate any law or regulation, or any other or decree of any governmental authority, (2) conflict with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which Borrower is a party or by which Borrower or any of its property is bound, (3) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral, (4) violate or conflict with the articles of incorporation or bylaws of Borrower, or (5) require the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; and

 

(d)                                 No Default.  No Default or Event of Default under the Loan Agreement, as amended hereby, has occurred and is continuing or will occur after giving effect to the transactions contemplated by Exhibit A hereto.

 

(e)                                  Breach of Representations.  Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in any material respect as of the date when made or deemed made.

 

8.  Conditions Precedent.  The effectiveness of this Amendment, and the obligation of ORIX to make any Loans, is subject to the following conditions precedent:

 

(a)                                  Amendment.  ORIX shall have received a true and complete copy of this Amendment, duly executed by Borrower.

 

(b)                                 Certified Resolutions.  ORIX shall have received certified resolutions and incumbency certificate of Borrower in form and substance acceptable to ORIX.

 

3

 

(c)                                  Opinion.   ORIX shall have received an opinion of Shipman & Goodwin LLP, counsel to Borrower, in form and substance acceptable to ORIX.

 

(d)                                 Amendment Fee.   Borrower shall pay to ORIX the Fee provided for in Section 4 above, which may be deducted from any disbursement of the Loan.

 

(e)                                  Warrant.  Borrower shall have issued to ORIX the Warrant provided for in Section 5 above.

 

(f)                                    Other Requirements.  ORIX shall have received such other documentation and information which it shall have requested relating to this Amendment.

 

9.  Reference to and Effect on Loan-Documents.

 

(a)                                  Ratification.  Except as specifically amended above, the Loan Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of the Loan Agreement or any other Loan Document.  Borrower hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

 

(b)                                 Representations.   Borrower hereby ratifies, confirms and reaffirms, all of the representations and disclosures contained in the Representations (as defined in the Loan Agreement), and represents and warrants that the Representations continue to be true and correct in all material respects, as of the date hereof.

 

(c)                                  No Waiver.  The execution and delivery of this Amendment shall not operate as a waiver of any right, power or remedy of ORIX under the Loan Agreement or any of the other Loan Documents.

 

(d)                                 References.  Upon the effectiveness of this Amendment each reference in (a) the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import and (b) any other Loan Document to “the Agreement” or “the Loan Agreement” shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Loan Agreement as amended hereto.

 

10.  Releases.  In further consideration of ORIX’s execution of this Amendment, Borrower for itself and on behalf of its respective successors (including, without limitation, any trustees acting on behalf of Borrower and any debtor-in-possession with respect to Borrower), assigns, subsidiaries and affiliates, hereby forever releases ORIX and their respective successors, assigns, parents, subsidiaries, affiliates, officers, employees directors, agents and attorneys (collectively, the “Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”), that Borrower may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take prior to the date this Amendment was executed with respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations, other than arising out of such Releasee’s

 

4

 

gross negligence or willful misconduct, as finally determined by a non-appealable court of competent jurisdiction.  This provision shall survive and continue in full force and effect whether or not Borrower shall satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement including payment in full of all Obligations.

 

11.  General.

 

(a)                                  Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Borrower and ORIX and their respective successors and assigns.

 

(b)                                 ENTIRE AGREEMENT.  THIS AMENDMENT REPRESENTS THE ENTIRE, FINAL AGREEMENT AND UNDERSTANDING CONCERNING THE SUBJECT MATTER HEREOF BETWEEN THE PARTIES HERETO, AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS, UNDERSTANDINGS, NEGOTIATIONS AND DISCUSSIONS, REPRESENTATIONS, WARRANTIES, COMMITMENTS, PROPOSALS, OFFERS AND CONTRACTS CONCERNING THE SUBJECT MATTER HEREOF, WHETHER ORAL OR WRITTEN.  THIS AMENDMENT, ANY SUPPLEMENTS HERETO, AND ANY INSTRUMENTS OR DOCUMENTS DELIVERED OR TO BE DELIVERED IN CONNECTION HEREWITH MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

(c)                                  Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)                                 Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

(e)                                  Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which, shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.   Delivery of an executed counterpart of a signature page to this Amendment by telecopy, pdf or other electronic means shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(f)                                    Incorporation of Loan Agreement Provisions.  The provisions contained in Section 9.9 (Governing Law) and Section 9.10 (Jury Waiver) of the Loan Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

[Signatures follow]

 

5

 

	
ORIX VENTURE FINANCE LLC
    	
TANGOE, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Kevin P. Sheehan
    	
 
    	
By:
    	
/s/   Albert R. Subbloie
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Kevin   P. Sheehan,
    	
 
    	
Name:
    	
Albert   R. Subbloie
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
President   and CEO
    	
 
    	
Title:
    	
CEO &   Founder
    

 

 

[Signature Page—Seventh Amendment to Loan and Security Agreement]

 

6

 

Exhibit A to
 Seventh Amendment to
 Loan and Security Agreement

 

1.  LOAN AMOUNT (Section 1.1):

 

	
Term   Loan-Disbursement:
    	
 
    	
$20,000,000.
    

 

The present outstanding balance of the Loan, at the date hereof, is $11,002,500.  The remaining $8,997,500 of the Loan shall be disbursed as follows, subject to all of the conditions herein:

 

(1)                               a disbursement of $5,000,000 (the “First Additional Disbursement”) concurrently with the consummation by Borrower of the purchase of assets (the “HCL Acquisition”) pursuant to the Asset Purchase Agreement dated December 21, 2010 (the “HCL APA”) between Borrower and HCL Expense Management Services Inc. (“HCL”) which shall take place no later than January 31, 2011; and

 

(2)                               a disbursement of $3,997,500 (the “Second Additional Disbursement”) concurrently with the consummation by Borrower of the purchase of assets (the “Telares Acquisition”) pursuant to the Asset Purchase Agreement (the “Telwares APA”) to be entered into between Borrower and Telwares, Inc. and Vercuity Solutions, Inc. (collectively, “Telwares”), which shall take place no later than six months after the date hereof.  If such purchase of assets is not consummated by such date, said $4,000,000 will not be disbursed.

 

	
Term   Loan-First Additional Disbursement- Conditions:
    	
 
    	
Without   limiting the other conditions to disbursement of Loans under this Agreement,   the First Additional Disbursement is conditioned on the following:
    

 

(i)                                   Borrower’s acquisition of assets pursuant to the HCL APA being consummated concurrently in a manner reasonably satisfactory to ORIX, and Borrower shall provide evidence of the same to ORIX reasonably satisfactory to ORIX; and

 

 

(ii)                                No Default or Event of Default shall have occurred and be continuing, and, after giving effect to the transactions contemplated by the HCL APA, no Default or Event of Default shall have occurred and be continuing.

 

Borrower represents and warrants that it has provided a true and correct copy of the HCL APA and all amendments, exhibits and schedules thereto to ORIX, and that Borrower has not waived, and will not have waived, any of the provisions thereof or any rights relating thereto, and that all conditions to the closing thereunder have been satisfied or are being satisfied concurrently.  Without limiting the generality of the foregoing, Borrower shall provide ORIX with evidence reasonably satisfactory to ORIX that good title to the assets being purchased pursuant to the HCL APA has been conveyed to Borrower, free and clear of all liens, security interests and other encumbrances, and that said sale has been in compliance with all applicable laws, rules and regulations.

 

Based on Borrower’s representations and warranties, ORIX consents to Borrower’s acquisition of the “Transferred Assets” (as defined in the HCL APA) and acknowledges that the consummation of such acquisition and the other transactions contemplated by the HCL APA, all in accordance with the terms of the HCL APA, shall not constitute a Default under Sections 4.5 (ii) and (xiii) of the Loan Agreement.  This consent does not constitute a consent to any other transaction, whether or not similar to the foregoing.

 

	
JPMorgan   Chase Amendment
    	
 
    	
Within   30 days after the date hereof, Borrower shall enter into an amendment to its   existing Advised Line of Credit Note dated September 15, 2010 to   JPMorgan Chase Bank, N.A. (“JPMorgan”) and the documents relating thereto, to   increase the line of credit of Borrower thereunder to $8,000,000. ORIX   agrees, concurrently therewith, to enter into an amendment to its existing   Intercreditor Agreement with JPMorgan to reflect such increase and to   increase the JPMorgan Chase Indebtedness Cap (as therein defined) to   $9,000,000.
    
	
 
    	
 
    	
 
    
	
Term   Loan-Second Additional Disbursement-
    	
 
    	
 
    

 

2

 

	
Conditions:
    	
 
    	
Without   limiting the other conditions to disbursement of Loans under this Agreement,   the Second Additional Disbursement is conditioned on the following:
    

 

(i)                                   Borrower’s acquisition of assets pursuant to the Telwares APA being consummated concurrently in a manner reasonably satisfactory to ORIX, and Borrower shall provide evidence of the same to ORIX reasonably satisfactory to ORIX; and

 

(ii)                                The Telwares APA and the schedules thereto shall be satisfactory to ORIX in its Good Faith Business Judgment; and

 

(iii)                             No Default or Event of Default shall have occurred and be continuing, and, after giving effect to the transactions contemplated by the Telwares APA, no Default or Event of Default shall have occurred and be continuing.

 

Borrower represents and warrants that, prior to the Second Additional Disbursement, it will provide a true and correct copy of the Telwares APA and all amendments, exhibits and schedules thereto to ORIX, and that Borrower will not have waived any of the provisions thereof or any rights relating thereto, and that all conditions to the closing thereunder will have been satisfied or will be satisfied prior to closing thereunder.  Without limiting the generality of the foregoing, Borrower shall provide ORIX with evidence reasonably satisfactory to ORIX that good title to the assets being purchased pursuant to the Telwares APA has been conveyed to Borrower, free and clear of all liens, security interests and other encumbrances, and that said sale has been in compliance with all applicable laws, rules and regulations.

 

Based on Borrower’s representations arid warranties, upon satisfaction of the conditions to the Second Additional Disbursement, ORIX will consent to Borrower’s acquisition of the “Purchased Assets” (as defined in the Telwares APA) and acknowledge that the consummation of such acquisition and the other transactions contemplated by the Telwares APA, all in accordance with the terms of the Telwares APA, shall not constitute a Default under Sections 4.5 (ii) and (xiii) of the Loan Agreement;  provided that this consent and acknowledgement is conditioned on (i) all schedules and exhibits to the Telwares APA being acceptable to ORIX in its

 

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Good Faith Business Judgment, and (ii) all changes to the version of the Telwares APA previously delivered to ORIX being acceptable to ORIX in its Good Faith Business Judgment, and (iii) no material adverse change occurring in the business of Telwares.

 

	
Term   Loan-Repayment:
    	
 
    	
The   entire unpaid principal balance of the Loan outstanding on the first   anniversary of the date hereof (collectively, the “Full Balance”) (including   the present outstanding balance of $11,002,500, and the First Additional   Disbursement, and, if made, the Second Additional Disbursement) shall be paid   as follows:
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
On   the 21st day of each month during the period from February 1, 2012 through January 31, 2013
    	
 
    	
1.75% of the Full Balance each month
    
	
 
    	
 
    	
On   the 21st day of each month during the period from February 1, 2013   through January 31, 2014
    	
 
    	
2.00% of the Full Balance each month
    
	
 
    	
 
    	
On   the 21st day of each month during the period from February 1, 2014   through December 31, 2014
    	
 
    	
2.50% of the Full Balance each month
    
	
 
    	
 
    	
On   January 21, 2015
    	
 
    	
The entire unpaid principal balance of the Loan
    

 

Revolving Loans:                                                No Revolving Loans are outstanding and no further Revolving Loans shall be made.

 

2.  INTEREST.

 

	
Interest Rate (Section 1.3):
    	
 
    	
The   outstanding principal amount of the Loan shall bear interest each month at an   interest rate per annum equal to the Base Rate in effect for such month, plus   6.25% per annum, provided that the interest rate in effect on any day shall   not be less than 9.75% per annum.
    

 

4

 

	
 
    	
 
    	
Interest   shall be calculated on the basis of a 360-day year for the actual number of   days elapsed.  Base Rate has the   meaning set forth in Section 8 of this Agreement.
    

 

6.  FINANCIAL COVENANTS.

 

	
(Section 4.8):
    	
 
    	
 

 

Borrower   shall comply with the following financial covenants.  Compliance shall be measured monthly,   except as may be otherwise provided below.
    
	
 
    	
 
    	
 
    

 

	
EBITDA:
    	
 
    	
Borrower’s   EBITDA shall be not less than the following amounts during the following   periods:
    

 

	
 
    	
 
    	
Period
    	
 
    	
Minimum
   EBITDA
    
	
 
    	
 
    	
Twelve months ending March 31, 2011
    	
 
    	
$
    	
7,000,000
    
	
 
    	
 
    	
Twelve Months Ending June 30, 2011
    	
 
    	
$
    	
8,000,000
    
	
 
    	
 
    	
Twelve Months Ending September 30, 2011
    	
 
    	
$
    	
9,000,000
    
	
 
    	
 
    	
Twelve Months Ending December 31, 2011
    	
 
    	
$
    	
10,000,000
    
	
 
    	
 
    	
Twelve months ending March 31, 2012
    	
 
    	
$
    	
11,000,000
    
	
 
    	
 
    	
Twelve Months Ending June 30, 2012
    	
 
    	
$
    	
12,000,000
    
	
 
    	
 
    	
Twelve Months Ending September 30, 2012
    	
 
    	
$
    	
13,000,000
    
	
 
    	
 
    	
Twelve Months Ending December 31, 2012
    	
 
    	
$
    	
14,000,000
    

 

For each 12-month period ending on March 31, June 31, September 30 and December 31 after December 31, 2012, through and including December 31, 201.4, the minimum amount of EBITDA for each such period shall be an amount negotiated for in good faith, and agreed to in writing, by Borrower and ORIX and which is based upon the most recent budget, operating plan and other financial information of Borrower provided to ORIX, provided, however, if Borrower

 

5

 

and ORIX do not reach agreement on the minimum amount of EBITDA for any such period, Borrower and ORIX hereby agree that the minimum amount of EBITDA for such period will be equal to the sum the minimum amount of EBITDA established for the immediately preceding period, plus an additional 5% thereof.

 

Minimum Liquidity:                               Borrower shall maintain at all times, unrestricted cash and cash equivalents, in an account or accounts with respect to which ORIX has a first priority perfected security interest and has obtained an account control agreement or account control agreements, in form and substance satisfactory to ORIX, of not less than $3,000,000.

 

Definitions:                                                                              “EBITDA” shall mean for any applicable period the net income of Borrower for such period, before interest, taxes, depreciation and other non-cash amortization expenses, determined in accordance with GAAP.

 

6

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