Document:

8K FINEP EX101

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

Exhibit 10.1

FINANCE CONTRACT BETWEEN FINANCIADORA DE ESTUDOS E PROJETOS - FINEP AND TECUMSEH DO BRASIL LTDA.

FINANCIADORA DE ESTUDOS E PROJETOS - FINEP CONTRACT INSTRUMENT CODE No

FINANCIADORA DE ESTUDOS E PROJETOS - FINEP, federal public company, linked to the Ministry of Science, Technology and Innovation, headquartered in Brasília, Federal District, and services in this city, at Praia do Flamengo, No. 200, enrolled in the CNPJ No. 33.749.086/0001-09, herein after called FINEP, and TECUMSEH DO BRASIL LTDA. headquartered at São Paulo, São Carlos, Rua Coronel José Augusto de Oliveira Salles, 478, Postcode 13.560-971, enrolled in the CNPJ under the No. 45.361.425/0001-64, hereinafter called FINANCED PARTY, through their legal representatives, have agreed to and contracted the following:

CLAUSE ONE 
VALUE

By this Agreement, FINEP grants to the FINANCED PARTY credit in the amount of R$ 82,475,114.40 (eighty-two million, four hundred seventy-five thousand, one hundred and fourteen Brazilian reals and forty cents).

CLAUSE TWO 
OBJECTIVE

The objective of the funding granted hereby is to defray, in part, expenses incurred in the preparation and execution of the project described in the attached document which incorporates this agreement, hereinafter called simply PROJECT (No. 1036/13), under Decisions DEC/DIR/001/2014 dated 01/28/2014 and DEC/DIR/123/2014 dated 05/27/2014, both BY FINEP’s Executive Board, according to the Disbursement Schedule approved by FINEP in the Work Plan.

CLAUSE THREE 
AVAILABILITY OF FUNDS

1.Respected financial and budget planning of FINEP, the funding granted hereby shall be made available to the FINANCED PARTY in installments according to the needs of the financed project according to the work plan and upon fulfillment of the conditions set forth in Clause Eleven.
2.During the period of use of resources, the FINANCED PARTY agrees to maintain bank checking account, indicated to FINEP, for moving resources of this financing.    /
3.The date of signing of this instrument will be considered as basis for the computation of the periods listed in the Disbursement Schedule.    
4.Values of installment available for withdraw will be automatically canceled, if not fully utilized within 36 (thirty six) months from the date of execution hereof.

4.1. At the request of FINANCED PARTY, FINEP, at its sole discretion, may extend the time limits for use of portions of funding, as long as the FINANCED PARTY submits a written explanation, accepted by FINEP.

CLAUSE FOUR 
COUNTERPART

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

1.The FINANCED PARTY hereby undertakes irrevocably and irreversibly, to participate in the costs of establishing and implementing the PROJECT described in Clause Two, with its own resources in the minimum amount of R$ 35,346,477.60 (thirty-six million, three hundred and forty-six thousand, four hundred and seventy-seven Brazilian reais and sixty cents).    /
2.The FINANCED PARTY is also committed to contribute their own resources for the execution of the project, in the amounts and time periods, as defined in the Work Plan approved by FINEP, as well as, in its entirety, the necessary resources to cover any shortcomings/or/ increases to the total value of the project.

CLAUSE FIVE
CHARGES

1.For the purposes of this Agreement, we define the following

		
	a)
	SPREAD - Percentage value corresponding to the remuneration of the capital invested above the cost of borrowing;    

		
	b)
	REDUCTION FACTOR - TJLP part not capitalized, currently set at 6% (six per cent) per annum;

		
	c)
	CAPITALIZATION FACTOR - Corresponds to the result of adjustment of the TJLP by the reduction factor;

		
	d)
	EQUALIZATION - Instrument based on 11.540/2007 Law, Article 12, paragraph I, "c", which adjusts the total interest owed by operation, including the part relating to TJLP and the part relating to SPREAD;

		
	e)
	FINANCIAL DELINQUENCY - Considered financially delinquent will be the company that does not pay off its debts with FINEP up to twenty (20) days after the date fixed for contractual maturity of each installment of interest and/or amortization, accumulating two successive or interleaved delays in the same year;

2. On the principal of the debt will fall, pro rata tempore, compound interest of TJLP plus 5% (five percent) per annum by way of SPREAD, reduced by the EQUALIZATION equivalent to 4.5% (four point five percent) per annum.
I. When the TJLP exceeds 6% (six percent) per annum:

		
	a)
	The amount corresponding to the TJLP installment that exceeds 6% (six per cent) per annum will be capitalized daily and calculated upon the incidence of the following term of capitalization on the unpaid balance, then consider all the financial events of the period: 

FC = [(1 +TJLP)/1.06]  n/360  (Capitalization factor equal to, open bracket, the ratio between the TJLP, plus unit, and a whole and six one hundredths, close bracket, raised to the power corresponding to the ratio between "n" and three hundred and sixty), being:

FC -        Capitalization Factor;

TJLP -           Long Term Interest Rate, published by the Central Bank of Brazil, expressed as a decimal number;

n -         Number of links between the date of the financial event and the capitalization date, expiration or settlement of the obligation, considering how every financial event, any fact of a financial nature which results or may result in alteration of days outstanding balance.

As operational support for the term of capitalization, the currency adopted will be URTJ-01, whose daily quotations will be obtained by applying the FC factor on the price of the previous day, making n=l.

		
	b)
	The SPREAD of 5% (five percent) per annum referred to in item 2 of this Clause, plus the reduction factor (6% - six percent per annum) and deduced EQUALIZATION, will focus on the balance due, the due dates for the interest referred to in item 4, below, or at maturity or liquidation of this Agreement, being considered for the daily interest calculation, the number of days between the date of each financial event and chargeability of those dates.

		
	c)
	The amount referred to in sub-clause I, paragraph "a", of this Clause, which will be capitalized and included in the debt principal will be payable together with principal installments.

II - When TJLP is equal to or lesser than 6% (six percent) per annum:
		
	a)
	The capitalization factor of the outstanding balance will equal one (1);

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

		
	b)
	The SPREAD of 5% (five percent) per annum plus the TJLP itself and deduced EQUALIZATION, will focus on the balance due, the due dates for interest mentioned in item 4 below, or on the date of maturity or settlement of contract, being considered for the daily interest calculation, the number of days between the date of each financial event and due dates for the aforementioned.

3. Under no circumstances negative charges will be accepted.

4. The amount determined under item 2 of this Clause as applicable, will be payable monthly during the grace period due the 15th (fifteenth) of every month. During the amortization period, the amount referred to above, will be required together with the installments of principal and on the due date or settlement of the Agreement.

5. Should there be a default of any financial obligation or if the amount offered is insufficient to settle at least the provision of debt, will be recorded as a debit, the values of defaulting payments, plus the charges specified in the following items. Payments by FINANCED PARTY will be accepted as partial payment of the debt. This procedure cannot be relied on as sufficient to stop or overturn the late fee or the immediate enforceability of any obligations, will not result in novation of the debt or take away the loss of the benefit of equalization where provided for in this Agreement.

5.1. On the value of defaulting bonds will be applied immediately, a fine of up to 10% (ten percent), scaled according to the period of default, as specified below:

	
		
	No. of Days Late
	Fine

	01 (one)
	1% (one percent)

	02 (two)
	2% (two percent)

	03 (three)
	3% (three percent)

	04 (four)
	4% (four percent)

	05 (five)
	5% (five percent)

	06 (six)
	6% (six percent)

	07 (seven)
	7% (seven percent)

	08 (eight)
	8% (eight percent)

	09 (nine)
	9% (nine percent)

	10 (ten)
	10% (ten percent)

5.2.    The default FINANCED PARTY also be subject to the payment of default interest of 1% (one percent) per month, incidents on the outstanding balance due, plus the penalty referred to in sub-item 5.1, above will be calculated pro rata tempore.

5.3.    Installments in debt will continue to be applied the charges of this Agreement.

5.4.     Assuming that the immediate charge of all debt occurs, the provision of the previous sub-items of this Clause will be applied to the balance due.

6. The amount corresponding to 1.12% (one point twelve percent) of the amount of funding will be used to meet costs of inspection and supervision. This percentage will be applied on the value of each installment of finance and less upon their actual release. 

7. In the event of being replaced the legal criteria for the remuneration of resources, compensation provided for in this Agreement may turn out to be effected by the use of the new criteria for the remuneration of said appeals which, besides preserving the real value of the transaction, to remunerate in the same previous levels. In this case, the new criteria will only be due from the date the FINEP reports the change, in writing, to the FINANCED PARTY.

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

8. The occurrence of financial default, pursuant to paragraph "e", item 1, of this Clause, generates the complete loss of the benefit of equalization, in terms of Clause Six.

CLAUSE SIX
LOSS OF EQUALIZATION BENEFIT

1. The loss of the benefit of equalization shall take effect from the date of occurrence of default to the termination of the contract, under the following conditions:
a)In the case of financial default, the purge of the benefit will reach the unpaid and outstanding installments, so that the outstanding balance will be recalculated from the occurrence of the breach;
b)In the cases provided in paragraphs "a", "h", and T Item 1 of Clause Fourteen, except as provided in paragraphs 2 and 7 of the same, the purge of the benefit will reach the benefits paid and outstanding, so that the outstanding balance will be recalculated at the time of conclusion of the contract.

1.1. The loss of the benefit of equalization will be applied, and also due to breach this contract and/or in which another instrument signed by FINANCED PARTY with FINEP.

CLAUSE SEVEN
CHARGE FOR CREDIT RESERVE

1. A charge of 0.1% (one tenth percent) will fall, in title of credit reserve, payable over a period of thirty (30) days or fraction in the following cases:
a)On the unused balance of each tranche of credit from its immediate availability date to the date of disbursement, will be required when its payment; and    
b)The balance of the unused credit from the day immediately following its availability to the date of cancellation, made at the request of FINANCED PARTY or upon the initiative of FINEP and which payment will be due on the date of the application or the decision of FINEP, as appropriate.

1.1.The incidence of charge provided above will occur when setting the schedule of resource availability by FINEP.
1.2.This charge will not apply if the financial reprogramming previously requested by the FINANCED PARTY and approved by FINEP occurs.

CLAUSE EIGHT
RETURN OF FUNDS NOT USED

1. The FINANCED PARTY should return to FINEP, within ninety (90) days from receipt of the notification, the amount disbursed and not used until the deadline in item 4 of Clause Three, updated by the Selic rate from the date of release of the corresponding portion(s). From the compensation determined, compensatory interest shall be deducted established in Clause Five incidents on 2 - The value corresponding to the main features returned, excluding charges, will be repaid by the outstanding balance of the financing.

CLAUSE NINE
OUTSTANDING BALANCE

The outstanding balance will be measured as the sum of the value of the releases plus charges stipulated in Clause Five deducted amortizations paid.

CLAUSE TEN 
GRADE PERIOD AND AMORTIZATION

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

1.During the grace period of 36 (thirty six) months, covering the period from the date of signature of the Agreement and the expiration of the first amortization installment will be charged the cost of dealing with Clause Five.    
2.The debt principal arising from this Agreement shall be paid to FINEP in 73 (seventy-three) consecutive monthly installments, each in the principal amount of maturing debt, divided by the number of repayment installments not yet due. The maturity of the first installment will take place on 07/15/2017 and the others on the same day of the subsequent months, the last occurring in 07/15/2023 and the others on the same day of the subsequent months, the last occurring in 07/15/2023.     
3.Non-receipt of the notice of assessment shall not relieve the FINANCED PARTY of the obligation to pay the installments of the balance due on the dates set forth herein.
4.Where the repayment of principal and interest will occur on Saturdays, Sundays or national holidays, including bank, it will shift to the next business day.
CLAUSE ELEVEN 
CONDITIONS FOR USE OF CREDIT

1.For the disbursement of the first installment, the FINANCED PARTY shall, within sixty (60) days of the date of execution hereof:
		
	a)
	prove the transcript of this Contract in the Registry of Deeds and Documents at the headquarters of the FINANCED PARTY.

		
	b)
	indicate the bank checking account linked to the handling of resources;

		
	c)
	submit a Certificate of Charges Relating to Social Security Contributions and Third Parties issued by the IRS Joint Certificate of Charges Relating to Federal Taxes and the Active Debt of the Union of the FINANCED PARTY;

		
	d)
	submit a Certificate of Compliance of FGTS (CRF) issued by the Federal Savings; for the FINANCED PARTY;

		
	e)
	be compliant with the Union, its institutions and entities of Direct and Indirect Administration;

		
	f)
	present to FINEP letter of guarantee issued by a financial institution approved in advance by FINEP, In the minimum value of the installment, plus charges arising from this funding, valid for at least one (1) year of its issuance;

1.1. The non-compliance by the FINANCED PARTY of the conditions listed above within the stipulated period will result, at the discretion of FINEP, the extinction of right to this contract without prior notification, judicial or extrajudicial, of the FINANCED PARTY and the consequent filing of the PROJECT.

2.For disbursement of subsequent installments after the first, the FINANCED PARTY must submit to FINEP the following documents:
		
	a)
	partial statement of the costs of the resources previously disbursed according to the Work Plan approved by FINEP;

		
	b)
	partial statement of the use of its own funds performed according to the Work Plan approved by FINEP;

		
	c)
	interim progress report of PROJECT activities;

		
	d)
	Project Expense Report audited by Independent Audit firm registered with the Securities and Exchange Commission - CVM, which should contain the expenditures were funded by FINEP and related to the company’s counterpart;    

		
	e)
	certificate of Debits Relating to Social Security Contributions and Third Parties issued by the IRS, Joint Certificate of Debt Relating to Federal Taxes and the Debt Union and the Certificate of Compliance FGTS (CRF) issued by the Federal Savings; of the FINANCED PARTY;

		
	f)
	be compliant with the Union, its institutions and entities of Direct and Indirect Administration;

		
	g)
	present to FINEP letter of guarantee issued by a financial institution approved in advance by FINEP, In the minimum value of each installment, plus charges arising from this funding, valid for at least one (1) year of its issuance;

3.Within 180 (one hundred eighty) days from the closing date for using resources, the FINANCED PARTY shall submit to FINEP:
		
	a)
	final consolidated statement of the costs of the resources previously released by FINEP according to the Work Plan;

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

		
	b)
	final consolidated statement of use of its own funds of counterpart in the amount provided for in Clause FOUR - COUTNERPART;

		
	c)
	One (1) copy of the Final Project Report, in accordance with the model propagated on FINEP’s site (www.finep.gov.br);

		
	d)
	Project Expense Report audited by Independent Audit firm registered with the Securities and Exchange Commission - CVM, which should contain the expenditures were funded by FINEP and related to the company’s counterpart;

4.The statements of expenditure shown under item 2 and 3 of this CLAUSE shall contain breakdown of expenditures in PROJECT, by identifying the triggering event of the expense, its value and the number of the respective invoice or similar document.

5.FINEP will only release the installments if it understands that the documents referred to in items 1 and 2 above are satisfactory.

6.The unsatisfactory delivery, at the discretion of FINEP, of the documents required under paragraphs 'a', ‘b’ 'c' and 'd' of Item 2 and paragraphs of Item 3 of this Clause shall entail warning of the FINANCED PARTY by letter granting thirty (30) days to comply with the obligations.

6.1. During the period given by the warning and until the fulfillment of related obligations in the caput, the release of further installments will be suspended.

7.Supporting documents mentioned in point 'a' and Y Item 2, and the points 'a' and 'c' in item 3 of this CLAUSE shall be prepared based on the models available on the FINEP website.

CLAUSE TWELVE
DIFFERENT OBLIGATIONS OF THE FINANCED PARTY

1. The FINANCED PARTY, from the date of this Contract and until its final settlement, assumes the following obligations, without prejudice to the provisions in the course of this contractual instrument:
		
	a)
	apply funds received solely on the execution of the project, according to the Work Plan approved by FINEP, that the FINANCED PARTY hereby acknowledges and agrees;

		
	b)
	promptly notify the FINEP occurrence that import modification of the Project or Work Plan approved by FINEP;

		
	c)
	adopt measures and actions to prevent or repair damage to the environment, safety and labor medicine that may be caused by the PROJECT;

		
	d)
	maintain for a period of five (5) years from the expiration of the last repayment installment of this funding exclusively for FINEP file available in physical and digital media, supporting documents relating to expenditure related to the statements referred to in items 2 and 3 of Clause Eleven;

		
	e)
	submit documents and information requested by letter, by FINEP, within 30 (thirty) days of receiving the notice, including on implementation or outcome of the project and proof of expenditure incurred, regardless of supervision to be exercised by FINEP;

		
	f)
	not perform acts that directly or indirectly result in decreased ability to pay of this funding without prior written permission from FINEP;

		
	g)
	inform to FINEP the occurrence of events that result in decreased ability to pay of this funding;

		
	h)
	inform to FINEP, immediately and in writing, any event resulting in decrease, insufficiency or  impossibility of collateral security, case in which case the FINANCED PARTY should strengthen or replace warranty within the period of 30 (thirty) days of such information, without this implying in novation or exemption of the co-signers/guarantors of this contract;

		
	i)
	pay with their own resources all expenses necessary for the formalization of this Agreement;

		
	j)
	ensure FINEP the right to supervise the execution of this Agreement, especially the implementation of funded resources and used its own resources;

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

		
	k)
	ensure FINEP all necessary facilities and monitoring the project for studies of their legal status, technical, economic and financial relating to the Project, including, at the discretion of FINEP, auditing services accesses, as long as advance communication is made by FINEP;

		
	l)
	keep FINEP informed of the results of the PROJECT financed, especially about the amount of investment actually made with the implementation of the PROJECT, on the dates specified in this Agreement, or whenever requested;

		
	m)
	mention, whenever disclosing the PROJECT object of this funding, FINEP’s cooperation as financing agency, including the place of execution, where sign must be affixed according to the model, size and description, contained on the FINEP webpage (http://www.finep.gov.br), with the following text or another supplied by FINEP: "PROJECT FINANCED BY FINANCIADORA DE ESTUDOS E PROJETOS -FINEP";

		
	n)
	Make appear prominently in all reports of disclosure resulting from the implementation of the PROJECT, the text mentioned in paragraph "m";

		
	o)
	insert the FINEP virtual banner  on your internet page, related to the PROJECT, if any, as well as signage highlighting the financial support of FINEP, visible part of the venue of the project and goods funded inconsumable, as model in Portal FINEP: http://www.finep.gov.br. The virtual banner  must have link that directs to said FINEP portal;

		
	p)
	to keep its headquarters and management in Brazil, communicating to FINEP any change even within the national territory;

		
	q)
	inform to FINEP all changes made in the capital and/or corporate structure that may affect the business decision-making, as well as those that may influence the ability to pay obligations in this contract, within 10 (ten ) days after the Board of Trade or the Register of Legal Entities responsible;

		
	r)
	submit annually its accounting and the half-yearly financial statements for the six (6) months of the financial year within 90 days of closing;

		
	s)
	comply with legislation relating to the National Environmental Policy and maintain in good standing its obligations to the organs of the environment during the term of this Agreement;

		
	t)
	communicate to FINEP, before the date of graduation and ownership, the name and CPF/MF of the person who, in paid function or being among its administrators, will be sworn in and graduated as Representative, Senator or City Councilor. The notice shall be accompanied by proof of actions to be taken by the FINANCED PARTY for withdrawal is prevented from contracting with the Public Administration, in accordance with Article 54, paragraphs I and II of the Federal Constitution.

1.1. Failure to comply with the obligations laid down in points 'a 'and ‘b’ of item 1 above may configure default of this contract, entailing the loss of the benefit of equalization as provided in CLAUSE SIX - LOSS OF EQUALIZATION BENEFIT.

CLAUSE THIRTEEN 
WARRANTIES

1.To ensure payment of financial obligations and the obligations under the Early Maturity Debt, under this Agreement, as the debt principal, interest, commissions, contractual penalty and fine, the FINANCED PARTY gives to FINEP surety granted by a financial institution approved in advance by FINEP, which undertakes this in the best form of law, as GUARANTOR and main payer of the FINANCED PARTY and severally, waiving the benefits of Articles 827 and sole paragraph of art. 333 of the Civil Code (Law 10.406 dated January 10, 2002), requiring that for themselves and their eventual successors to the final settlement of the debt secured.
1.1. To meet the requirements in item 1 above, the FINANCED PARTY will deliver a bank guarantee valid for at least one (1) year from its issue, in the amount of each installment, plus charges. The surety bond must be replaced sixty (60) days before the expiration in the minimum value of the outstanding balance indicated by FINEP plus the costs of this financing.
1.2. Along with this instrument, the above mentioned bank surety letters above will form an indivisible whole.

2.The FINANCED PARTY may, upon prior payment of the appreciation rate, submit to analysis by FINEP proposed of replacement or release of guarantees agreed in the contract.

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

2.1. The prepayment of the appreciation rate does not require FINEP to substitute, waive or release the guarantee negotiated in this contract.

2.2. The substitution, release, waiver or reinforcement of guarantees agreed upon in this contract does not imply novation or unburdening of responsibility of obligors, guarantors or co-signers.

3.FINEP may require reinforcement or replacement warranty in any occurrence that results in decreased, failure or impossibility of the security lodged, in which case the FINANCED PARTY should reinforce or replace warranty within thirty (30) days from the notice that FINEP gives by telegram, certified letter by mail or through the Registry of Deeds and Documents, or even in court.

CLAUSE FOURTEEN 
EARLY DEBT MATURITY

1.FINEP may declare this Agreement expired in advance at any time, independent of judicial or extrajudicial notification, with the payment of the debt and immediate suspension of any disbursement, if it is proven by FINEP:
		
	a)
	the application of financing proceeds in the purposes other than that provided in CLAUSE TWO - OBJECTIVE, without loss of power for FINEP to communicate this fact to the Federal Public Ministry, for the purposes and effects of Law No. 7.492, dated 06.16.86;

		
	b)
	The diplomation as Representative, Senator or City Counselor of a person remunerated by the FINANCED PARTY, or, among it administrators, people included in the prohibitions provided by the Federal Constitution, article 54, paragraphs I and II, article 27, § 1 and article 29, IX;

		
	c)
	the constitution without permission from FINEP, of charge on the guarantees laid out in this contract;

		
	d)
	the change of the effective direct or indirect control of the FINANCED PARTY, which, in the judgment of FINEP, could jeopardize the orderly development of the PROJECT and / or disable the faithful execution of the CONTRACT;

		
	e)
	inclusion in corporate agreement, bylaws or articles of the FINANCED PARTY and in the acts of the parent companies, of device by which a special quorum is required for deliberation or approval of matters limiting or restricting the control of any of these companies by their controllers, or furthermore, the inclusion therein, of conditions leading to:

i)    restrictions on the ability to grow of the FINANCED PARTY or to its technological development;
ii) restrictions on access of the FINANCED PARTY to new markets;
or
iii) restrictions or loss of ability to pay financial obligations under this financing.
6. Where the incidence of item "a" of item 1 above, plus the early termination of contract and loss of the benefit of equalization, the FINANCED PARTY shall be subject, starting on the day following the prescribed means of judicial or extrajudicial notification, the penalty of 50% (fifty per cent) of the delivered value and not recognized as valid expense by FINEP, plus interest payable as contractually adjusted to the date of actual payment of the debt.

7. Where the incidence of item "i" in item 1 above, FINEP not apply to loss of the benefit of equalization and penalties arising, where the PARTY Financed not competed or helped in any capacity, for the emergence or increase the project's natural risk.

CLAUSE FIFTEEN
 CLARITY AND LIQUIDITY OF DEBT

The FINANCED PARTY must recognize, as proof of its debt, the withdraws, requisitions, invoices and payment orders or similar documents, issuing or signing, as well as any accounting entry made by FINEP relating thereto, and FINEP, as evidence of its credit, receipts and notices that it signs or issues, relating to receipts for credit of the FINANCED PARTY, thus 

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

expressly guaranteeing, at any time, certainty and liquidity of the debt, including interest and other charges, which, with the main, comprise debt, except the Financed PARTY entitled to require later verification of these tests and get back the credit eventually discharged.

CLAUSE SIXTEEN 
EARLY DEBT SETTLEMENT

1.FINEP reserves the right to accept or refuse payments in anticipation of debt, and that acceptance is conditioned upon timely payment of the FINANCED PARTY, with all its contractual obligations and payment of the charges prescribed by FINEP.
2.The early settlement of debt does not relieve the FINANCED PARTY fulfillment of obligations to do or not do assumed by FINANCED PARTY in this contract.
2.1. The Financed PARTY may be relieved of the obligations referred to in item 2 above if FINANCED PARTY pays to FINEP additional fees and compensation charges, corresponding to the difference between charges provided for in this Agreement and the market rate during the period of the contract.

2.2. For purposes of this contract shall be considered market rate: modal daily fee charged in the Interbank Deposit transactions disclosed by the Registrar and Financial Settlement System (Cetip).

CLAUSE SEVENTEEN  
LIABILITY FOR BUSINESS SUCCESSION

1.In case of business succession, any successors of the FINANCED PARTY will be jointly liable for the obligations arising from the Contract.
1.1. The provisions of this Special Condition do not apply if there is prior consent from FINEP for the removal of solidarity in the partial demerger.

CLAUSE EIGHTEEN 
CONVENTIONAL PENALTY

If FINEP, for receiving its credit, recourses to legal action, the FINANCED PARTY shall pay, in respect of contractual penalty, 10% (ten percent) of the principal and interest on the outstanding balance of the debt, and extrajudicial expenses, court and attorney's fees, payable from the date on which the remedy for recovery. This penalty will be irreducible and payable together with the principal and accessories.

CLAUSE NINETEEN  
NON-EXERCISE OF RIGHTS

The delay or abstention, by FINEP, to the exercise of any rights or powers which assist it as a result of the law or this Agreement, or any agreement with delays in fulfilling the obligations of the Financed PARTY, not require any novation, may not be interpreted as a waiver of such rights or powers that may be exercised at any time at the sole discretion of FINEP.

CLAUSE TWENTY 
PLACE OF PAYMENT

The FINANCED PARTY shall pay all amounts under this Agreement or amortization or accessories, at FINEP's offices in Rio de Janeiro City, or in a place where its directs through this notice to pay, in cash or certified checks in favor of FINEP.

CLAUSE TWENTY-ONE 
STATEMENTS

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

Under penalty of incidence of contractual and legal penalties, civil and criminal, the FINANCED PARTY declares that:
		
	a)
	the property where the project will be deployed described in Clause Two of this contract has no legal reserve and/or permanent preservation area, or has that particular property there are no embargoes on existing economic use of illegally deforested areas, pursuant to art. I, II, of the National Monetary Council Resolution No. 3,545, dated February 29, 2008;

		
	b)
	is not breaching the embargo activity under Art. 11 of Decree No. 6,321, of December 21, 2007, c/c the art. 16, § 1 and § 2, Art. 17 and art. 54, capute single paragraph of Decree No. 6514 dated July 22, 2008, and have not been notified of any restrictive sanction of law, pursuant to sections I, II, IV and V of the art. 20 of Decree No. 6514 dated July 22, 2008;

		
	c)
	is compliant with the Federal Government, its agencies and entities of the direct and indirect government, subject to the obligations the due performance is proved by certificate, by reason of law;

		
	d)
	is not breaching the embargo activity under Art. I, II, of the National Monetary Council Resolution No. 3545 dated 29 February 2008;

		
	e)
	there are no House Representatives, Senators or City Counselors diplomated or inducted, employed by or among the administrators, not setting the prohibitions provided by the Federal Constitution Article 54, paragraphs I and II, Article 27, and § I and Article 29,

		
	f)
	all information provided to FINEP, including filling out forms and registrations on the internet, is true;

The parties elect the court of the City of Rio de Janeiro to solve any controversy of this Agreement, granting to FINEP the right to choose the court of its headquarters.

CLAUSE TWENTY-TWO 
AGREEMENT JURISDICTION

The pages of this Agreement are initialed by, lawyer of FINEP, enrolled in the OAB/RJ under the No 16988, by authorization of the legal representatives that sign it.

	
		
	/s/ Maria Salete Cavalcanti
	/s/ Fernando de Nielander R

	Maria Salete Cavalcanti
	Fernando de Nielander R

	Acting President
	Director

	FINEP
	FINEP

	 
	 

	 
	 

	/s/ Reinaldo Favoretto
	/s/ Antonio Donizetti Poiani

	Reinaldo Favoretto
	Antonio Donizetti Poiani

	Financial Manager
	Industrial Director

	Tecumseh do Brazil
	Tecumseh do Brazil

WITNESSES

FINEP               Ministry of Science, Technology and Innovation           Federal Government of Brazil

FINEP Reference No. 1036/13

ATTACHMENT

Support the innovation strategy of Tecumseh for the next three years, covering development of new products and processes. In the category of new products,  the development of new compressors and refrigeration solutions with lower power consumption, less use of materials and lower noise emission will be supported. Energy consumption is expected to decrease with the variation of the motor speed of the compressor and reducing material usage and energy consumption should occur with the use of a new skeleton design and compression mechanism.

In terms of process innovations, improvements will be made in compressors manufacturing process to reduce production costs - a solution will be sought for the continuous measurement of the temperature in the casting process, improving its control, reducing losses, and a concept will be applied of reliability testing using statistical tools to improve the productivity of the product certification process. A methodology will also be developed to assess environmental impacts throughout the life cycle of products and solutions such as optimization of loading into trucks and use of company stock will be researched.

July 7, 2014
	
		
	/s/ Reinaldo Favoretto
	/s/ Antonio Donizetti Poiani

	Reinaldo Favoretto
	Antonio Donizetti Poiani

	Financial Manager
	Industrial Director

	Tecumseh do Brazil
	Tecumseh do BrazilTHIS WARRANT AND THE SECURITIES ISSUABLE
UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY OTHER SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1)
AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAWS,
OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

IN ADDITION, THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT OF ANY HEDGING,
SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION OF SUCH SECURITIES BY
ANY PERSON FOR A PERIOD OF ONE HUNDRED (180) DAYS IMMEDIATELY FOLLOWING THE DATE OF EFFECTIVENESS OF THE PUBLIC OFFERING OF THE
COMPANY’S SECURITIES PURSUANT TO REGISTRATION STATEMENT NO.: 333-[XXXXX] AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
EXCEPT IN ACCORDANCE WITH FINRA RULE 5110(G)(2).

 

SECOND SIGHT MEDICAL PRODUCTS, INC.

UNDERWRITER WARRANT

[●] shares of Common Stock

[_______], 2014

 

This UNDERWRITER WARRANT
(this “Warrant”) of Second Sight Medical Products, Inc., a corporation, duly organized and validly existing
under the laws of the State of California (the “Company”), is being issued pursuant to that certain Underwriting
Agreement, dated [_______], 2014 (the “Underwriting Agreement”), between the Company and MDB Capital Group,
LLC (the “Underwriter”) relating to a firm commitment public offering (the “Offering”) of
shares of common stock, no par value, of the Company (the “Common Stock”) underwritten by the Underwriter.

 

FOR VALUE RECEIVED,
the Company hereby grants to MDB Capital Group, LLC and its permitted successors and assigns (collectively, the “Holder”)
the right to purchase from the Company up to [●] shares of Common Stock (such shares underlying this Warrant, the “Warrant
Shares”), at a per share purchase price equal to $[125% of the Public Offering Price] (the “Exercise
Price”), subject to the terms, conditions and adjustments set forth below in this Warrant.

 

1.     
     Date of Warrant Exercise. This Warrant shall become exercisable one hundred eighty (180)
days after the Base Date (the “Exercise Date”). As used in this Warrant, the term “Base
Date” shall mean [_______], 2014 (the effective date of the registration statement). Except as otherwise provided
for herein or as permitted by applicable rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”),
this Warrant and the underlying Warrant Shares shall not be sold, transferred, assigned, pledged or hypothecated prior to the
date that is one hundred eighty (180) days immediately following the Base Date pursuant to FINRA Rule 5110(g)(1), except as
permitted under FINRA Rule 5110(g)(2).

 

2.     
     Expiration of Warrant. This Warrant shall expire on the five (5) year anniversary of the
Base Date (the “Expiration Date”).

 

    	 

    	 

    

 

3.        
  Exercise of Warrant. This Warrant shall be exercisable pursuant to the terms of this Section 3.

 

3.1          Manner
of Exercise.

 

(a)          This
Warrant may only be exercised by the Holder hereof on or after the Exercise Date and on or prior to the Expiration Date, in accordance
with the terms and conditions hereof, in whole or in part (but not as to fractional shares) with respect to any portion of this
Warrant, during the Company’s normal business hours on any day other than a Saturday or a Sunday or a day on which commercial
banking institutions in New York, New York are authorized by law to be closed (a “Business Day”), by
surrender of this Warrant to the Company at its office maintained pursuant to Section 10.2(a) hereof, accompanied by a written
exercise notice in the form attached as Exhibit A to this Warrant (or a reasonable facsimile thereof) duly executed by the
Holder, together with the payment of the aggregate Exercise Price for the number of Warrant Shares purchased upon exercise of this
Warrant. Upon surrender of this Warrant, the Company shall cancel this Warrant document and shall, in the event of partial exercise,
replace it with a new Warrant document in accordance with Section 3.3.

 

(b)          Except
as provided for in Section 3.1(c) below, each exercise of this Warrant must be accompanied by payment in full of the aggregate
Exercise Price in cash by check or wire transfer in immediately available funds for the number of Warrant Shares being purchased
by the Holder upon such exercise.

 

(c)          The
aggregate Exercise Price for the number of Warrant Shares being purchased may also, in the sole discretion of the Holder, be paid
in full or in part on a “cashless basis” at the election of the Holder:

 

		(i)	in the form of Common Stock owned by the Holder (based on the Fair Market Value (as defined below)
of such Common Stock on the date of exercise);

 

		(ii)	in the form of Warrant Shares withheld by the Company from the Warrant Shares otherwise to be received
upon exercise of this Warrant having an aggregate Fair Market Value on the date of exercise equal to the aggregate Exercise Price
of the Warrant Shares being purchased by the Holder; or

 

		(iii)	(iii)   by a combination of the foregoing, provided that the combined value of all
cash and the Fair Market Value of any shares surrendered to the Company is at least equal to the aggregate Exercise Price for the
number of Warrant Shares being purchased by the Holder.

 

For purposes of this Warrant,
the term “Fair Market Value” means with respect to a particular date, the average closing price of the Common
Stock for the five (5) trading days immediately preceding the applicable exercise herein as officially reported by the principal
securities exchange on which the Common Stock is then listed or admitted to trading, or, if the Common Stock is not listed or admitted
to trading on any securities exchange as determined in good faith by resolution of the Board of Directors of the Company, based
on the best information available to it.

 

    	2

    	 

    

 

To illustrate a cashless
exercise of this Warrant under Section 3.1 (c)(ii) (or for a portion thereof for which cashless exercise treatment is requested
as contemplated by Section 3.1(c)(iii) hereof), the calculation of such exercise shall be as follows:

 

X = Y (A-B)/A

where:

 

		X =	the number of Warrant Shares to be issued to the Holder (rounded to the nearest whole share).

 

		Y =	the number of Warrant Shares with respect to which this Warrant is being exercised.

 

		A =	the Fair Market Value of the Common Stock.

 

		B =	the Exercise Price.

 

(d)          For
purposes of Rule 144 and sub-section (d)(3)(ii) thereof, it is intended, understood, and acknowledged that the Common Stock issuable
upon exercise of this Warrant in a cashless exercise transaction as described in Section 3.1(c) above shall be deemed to have been
acquired at the time this Warrant was issued. Moreover, it is intended, understood, and acknowledged that the holding period for
the Common Stock issuable upon exercise of this Warrant in a cashless exercise transaction as described in Section 3.1(c) above
shall be deemed to have commenced on the date this Warrant was issued.

 

3.2          When
Exercise Effective. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business
on the Business Day on which this Warrant shall have been duly surrendered to the Company as provided in Sections 3.1 and 12 hereof,
and, at such time, the Holder in whose name any certificate or certificates for Warrant Shares shall be issuable upon exercise
as provided in Section 3.3 hereof shall be deemed to have become the holder or holders of record thereof of the number of Warrant
Shares purchased upon exercise of this Warrant.

 

3.3          Delivery
of Common Stock Certificates and New Warrant. As soon as reasonably practicable after each exercise of this Warrant, in whole
or in part, and in any event within three (3) Business Days thereafter, the Company, at its expense (including the payment by it
of any applicable issue taxes), will cause to be issued in the name of and delivered to the Holder hereof or, subject to Sections
9 and 10 hereof, as the Holder (upon payment by the Holder of any applicable transfer taxes) may direct:

 

(a)          a
certificate or certificates (with appropriate restrictive legends, as applicable) for the number of duly authorized, validly issued,
fully paid and non-assessable Warrant Shares to which the Holder shall be entitled upon exercise; and

 

(b)          in
case exercise is in part only, a new Warrant document of like tenor, dated the date hereof, for the remaining number of Warrant
Shares issuable upon exercise of this Warrant after giving effect to the partial exercise of this Warrant (including the delivery
of any Warrant Shares as payment of the Exercise Price for such partial exercise of this Warrant).

 

    	3

    	 

    

 

4.      
    Certain Adjustments. For so long as this Warrant is outstanding:

 

4.1           Mergers
or Consolidations. If at any time after the date hereof there shall be a capital reorganization (other than a combination or
subdivision of Common Stock otherwise provided for herein) resulting in a reclassification to or change in the terms of securities
issuable upon exercise of this Warrant (a “Reorganization”), or a merger or consolidation of the Company with
another corporation, association, partnership, organization, business, individual, government or political subdivision thereof
or a governmental agency (a “Person” or the “Persons”) (other than a merger with another
Person in which the Company is a continuing corporation and which does not result in any reclassification or change in the terms
of securities issuable upon exercise of this Warrant or a merger effected exclusively for the purpose of changing the domicile
of the Company) (a “Merger”), then, as a part of such Reorganization or Merger, lawful provision and
adjustment shall be made so that the Holder shall thereafter be entitled to receive, upon exercise of this Warrant, the number
of shares of stock or any other equity or debt securities or property receivable upon such Reorganization or Merger by a holder
of the number of shares of Common Stock which might have been purchased upon exercise of this Warrant immediately prior to such
Reorganization or Merger. In any such case, appropriate adjustment shall be made in the application of the provisions of this Warrant
with respect to the rights and interests of the Holder after the Reorganization or Merger to the end that the provisions of this
Warrant (including adjustment of the Exercise Price then in effect and the number of Warrant Shares) shall be applicable after
that event, as near as reasonably may be, in relation to any shares of stock, securities, property or other assets thereafter deliverable
upon exercise of this Warrant. The provisions of this Section 4.1 shall similarly apply to successive Reorganizations and/or Mergers.

 

4.2           Splits
and Subdivisions; Dividends. In the event the Company should at any time or from time to time effectuate a split or subdivision
of the outstanding shares of Common Stock or pay a dividend in or make a distribution payable in additional shares of Common Stock
or other securities, or rights convertible into, or entitling the holder thereof to receive, directly or indirectly, additional
shares of Common Stock (hereinafter referred to as “Common Stock Equivalents”) without payment of any consideration
by such holder for the additional shares of Common Stock or Common Stock Equivalents (including the additional shares of Common
Stock issuable upon conversion or exercise thereof), then, as of the applicable record date (or the date of such distribution,
split or subdivision if no record date is fixed), the per share Exercise Price shall be appropriately decreased and the number
of Warrant Shares shall be appropriately increased in proportion to such increase (or potential increase) of outstanding shares;
provided, however, that no adjustment shall be made in the event the split, subdivision, dividend or distribution is not effectuated.

 

4.3           Combination
of Shares. If the number of shares of Common Stock outstanding at any time after the date hereof is decreased by a combination
of the outstanding shares of Common Stock, the per share Exercise Price shall be appropriately increased and the number of shares
of Warrant Shares shall be appropriately decreased in proportion to such decrease in outstanding shares.

 

4.4           Adjustments
for Other Distributions. In the event the Company shall declare a distribution payable in securities of other Persons, evidences
of indebtedness issued by the Company or other Persons, assets (excluding cash dividends or distributions to the holders of Common
Stock paid out of current or retained earnings and declared by the Company’s Board of Directors and excluding any shares
of common stock issued by the Company in connection with the non-transferable contractual right granted in connection with the
Company’s initial public offering) or options or rights not referred to in Sections 4.2 or 4.3 then, in each such case for
the purpose of this Section 4.4, upon exercise of this Warrant, the Holder shall be entitled to a proportionate share of any such
distribution as though the Holder was the actual record holder of the number of Warrant Shares as of the record date fixed for
the determination of the holders of Common Stock of the Company entitled to receive such distribution.

 

    	4

    	 

    

 

5.     
     No Impairment. The Company will not, by amendment of its articles of incorporation or
by-laws or through any consolidation, merger, reorganization, transfer of assets, 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 of this Warrant, but
will at all times in good faith assist in the carrying out of all of the terms and in the taking of all actions necessary or
appropriate in order to protect the rights of the Holder against impairment.

 

6.    
      Notice as to Adjustments. With respect to each adjustment pursuant to Section 4 of
this Warrant, the Company, at its expense, will promptly compute the adjustment or re-adjustment in accordance with the terms
of this Warrant and furnish the Holder with a certificate certified and confirmed by the Secretary or Chief Financial Officer
of the Company setting forth, in reasonable detail, the event requiring the adjustment or re-adjustment and the amount of
such adjustment or re-adjustment, the method of calculation thereof and the facts upon which the adjustment or re-adjustment
is based, and the Exercise Price and the number of Warrant Shares or other securities purchasable hereunder after giving
effect to such adjustment or re-adjustment, which report shall be mailed by first class mail, postage prepaid to the
Holder.

 

7.    
      Reservation of Shares. The Company shall, solely for the purpose of effecting the
exercise of this Warrant, at all times during the term of this Warrant, reserve and keep available out of its authorized
shares of Common Stock, free from all taxes, liens and charges with respect to the issue thereof and not subject to
preemptive rights of shareholders of the Company, such number of its shares of Common Stock as shall from time to time be
sufficient to effect in full the exercise of this Warrant. If at any time the number of authorized but unissued shares of
Common Stock shall not be sufficient to effect in full the exercise of this Warrant, in addition to such other remedies as
shall be available to Holder, the Company will promptly take such corporate action as may, in the opinion of its counsel, be
necessary to increase the number of authorized but unissued shares of Common Stock to such number of shares as shall be
sufficient for such purposes, including without limitation, using its Reasonable Commercial Efforts (as defined in Section 14
hereof) to obtain the requisite shareholder approval necessary to increase the number of authorized shares of Common Stock.
The Company hereby represents and warrants that all shares of Common Stock issuable upon proper exercise of this
Warrant shall be duly authorized and, when issued and paid for upon proper exercise, shall be validly issued, fully paid and
nonassessable.

 

8.      
    Registration and Listing.

 

8.1          Definition
of Registrable Securities; Majority. As used herein, the term “Registrable Securities” means any shares
of Common Stock issuable upon the exercise of this Warrant until the date (if any) on which such shares shall have been transferred
or exchanged and new certificates for them not bearing a legend restricting further transfer shall have been delivered by the Company
and subsequent disposition of the shares shall not require registration or qualification under the Securities Act or any similar
state law then in force. For purposes of this Warrant, the term “Majority Holders” shall mean in excess of fifty
percent (50%) of the then outstanding Warrant Shares.

 

8.2          Demand
Registration Rights.

 

(a)          The
Company, upon written demand (“Demand Notice”) of the Majority Holders, agrees to register on one occasion all
of the Registrable Securities (a “Demand Right”); provided, however, that the Holders shall have
no Demand Right if and only if the Registrable Securities may be sold without any limitations or restrictions under Rule 144. On
such occasion, the Company will file a registration statement or a post-effective amendment to the Registration Statement covering
the Registrable Securities within forty-five (45) days after receipt of a Demand Notice and use its Reasonable Commercial Efforts
to have such registration statement or post-effective amendment declared effective as soon as possible thereafter; provided, however,
that the Company shall not be required to comply with a Demand Notice if the Company has filed a registration statement with respect
to which the Holder is entitled to piggyback registration rights pursuant to Section 8.3 hereof and either: (i) the Holder has
elected to participate in the offering covered by such registration statement or (ii) if such registration statement relates to
an underwritten primary offering of securities of the Company, until the offering covered by such registration statement has been
withdrawn or until thirty (30) days after such offering is consummated. The demand for registration may be made at any time during
a period of four years beginning one (1) year from the Base Date. The Company covenants and agrees to give written notice of its
receipt of any Demand Notice by any Holder(s) to all other registered Holders of the Warrants and/or the Registrable Securities
within ten days from the date of the receipt of any such Demand Notice.

 

    	5

    	 

    

 

(b)          The
Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 8.2(a), but the
Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent
them in connection with the sale of the Registrable Securities. The Company agrees to use its Reasonable Commercial Efforts to
qualify or register the Registrable Securities in such states as are reasonably requested by the Majority Holder(s); provided,
however, that in no event shall the Company be required to register the Registrable Securities in a state in which such registration
would cause (i) the Company to be obligated to register, license or qualify to do business in such state, submit to general service
of process in such state or would subject the Company to taxation as a foreign corporation doing business in such jurisdiction
or (ii) the principal stockholders of the Company to be obligated to escrow their shares of capital stock of the Company. The Company
shall cause any registration statement or post-effective amendment filed pursuant to the demand right granted under Section 8(a)
to remain effective for a period of nine consecutive months from the effective date of such registration statement or post-effective
amendment. The Holders shall only use the prospectuses provided by the Company to sell the Registrable Securities covered by such
registration statement, and will immediately cease to use any prospectus furnished by the Company if the Company advises the Holder
that such prospectus may no longer be used due to a material misstatement or omission.

 

8.3          Incidental
Registration Rights.

 

(a)          If
the Company, for a period of six (6) years commencing one (1) year after the Base Date, proposes to register any of its securities
under the Securities Act (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities
Act or pursuant to registration on Form S-4 or S-8 or any successor forms) whether for its own account or for the account of any
holder or holders of its shares other than Registrable Securities (any shares of such holder or holders (but not those of the Company
and not Registrable Securities) with respect to any registration are referred to herein as, “Other Shares”),
the Company shall at each such time give prompt (but not less than thirty (30) days prior to the anticipated effectiveness thereof)
written notice to the holders of Registrable Securities of its intention to do so. The holders of Registrable Securities shall
exercise the “piggy-back” rights provided herein by giving written notice within ten (10) days after the receipt of
any such notice (which request shall specify the Registrable Securities intended to be disposed of by such holder). Except as set
forth in Section 8.3(b), the Company will use its Reasonable Commercial Efforts to effect the registration under the Securities
Act of all of the Registrable Securities which the Company has been so requested to register by such holder, to the extent required
to permit the disposition of the Registrable Securities so to be registered, by inclusion of such Registrable Securities in the
registration statement which covers the securities which the Company proposes to register. The Company will pay all Registration
Expenses in connection with each registration of Registrable Securities pursuant to this Section 8.3.

 

    	6

    	 

    

 

(b)          If
the Company at any time proposes to register any of its securities under the Securities Act as contemplated by this Section 8.3
and such securities are to be distributed by or through one or more underwriters, the Company will, if requested by a holder of
Registrable Securities, use its Reasonable Commercial Efforts to arrange for such underwriters to include all the Registrable Securities
to be offered and sold by such holder among the securities to be distributed by such underwriters, provided that if the managing
underwriter of such underwritten offering shall inform the Company by letter of its belief that inclusion in such distribution
of all or a specified number of such securities proposed to be distributed by such underwriters would interfere with the successful
marketing of the securities being distributed by such underwriters (such letter to state the basis of such belief and the approximate
number of such Registrable Securities, such Other Shares and shares held by the Company proposed so to be registered which may
be distributed without such effect), then the Company may, upon written notice to such holder, the other holders of Registrable
Securities, and holders of such Other Shares, reduce pro rata in accordance with the number of shares of Common Stock desired to
be included in such registration (if and to the extent stated by such managing underwriter to be necessary to eliminate such effect)
the number of such Registrable Securities and Other Shares the registration of which shall have been requested by each holder thereof
so that the resulting aggregate number of such Registrable Securities and Other Shares so included in such registration, together
with the number of securities to be included in such registration for the account of the Company, shall be equal to the number
of shares stated in such managing underwriter’s letter.

 

8.4          Registration
Procedures. Whenever the holders of Registrable Securities have properly requested that any Registrable Securities be registered
pursuant to the terms of this Warrant, the Company shall use its Reasonable Commercial Efforts to effect the registration for the
sale of such Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company
shall as expeditiously as possible:

 

(a)          prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its Reasonable Commercial Efforts
to cause such registration statement to become effective;

 

(b)          notify
such holders of the effectiveness of each registration statement filed hereunder and prepare and file with the SEC such amendments
and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to (i) keep
such registration statement effective and the prospectus included therein usable for a period commencing on the date that such
registration statement is initially declared effective by the SEC and ending on the date when all Registrable Securities covered
by such registration statement have been sold pursuant to the registration statement or cease to be Registrable Securities, and
(ii) comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration
statement;

 

(c)          furnish
to such holders such number of copies of such registration statement, each amendment and supplement thereto, the prospectus included
in such registration statement (including each preliminary prospectus) and such other documents as such seller may reasonably request
in order to facilitate the disposition of the Registrable Securities owned by such holders;

 

(d)          use
its Reasonable Commercial Efforts to register or qualify such Registrable Securities under such other securities or blue sky laws
of such jurisdictions as such holders reasonably request and do any and all other acts and things which may be reasonably necessary
or advisable to enable such holders to consummate the disposition in such jurisdictions of the Registrable Securities owned by
such holders; provided, however, that the Company shall not be required to: (i) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this subparagraph; (ii) subject itself to taxation in any such jurisdiction;
or (iii) consent to general service of process in any such jurisdiction;

 

    	7

    	 

    

 

(e)          notify
such holders, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening
of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material
fact or omits any material fact necessary to make the statements therein, in light of the circumstances in which they are made,
not materially misleading, and, at the reasonable request of such holders, the Company shall prepare a supplement or amendment
to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not
contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in
light of the circumstances in which they are made, not materially misleading;

 

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

 

(g)          make
available for inspection by any underwriter participating in any disposition pursuant to such registration statement, and any attorney,
accountant or other agent retained by any such underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company’s officers, directors, managers, employees and independent accountants to
supply all information reasonably requested by any such underwriter, attorney, accountant or agent in connection with such registration
statement;

 

(h)          otherwise
use its Reasonable Commercial Efforts to comply with all applicable rules and regulations of the SEC, and make available to its
security holders, as soon as reasonably practicable, an earnings statement of the Company, which earnings statement shall satisfy
the provisions of Section 11(a) of the Securities Act and, at the option of the Company, Rule 158 thereunder;

 

(i)          in
the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending
or preventing the use of any related prospectus or suspending the qualification of any Registrable Securities included in such
registration statement for sale in any jurisdiction, the Company shall use its Reasonable Commercial Efforts promptly to obtain
the withdrawal of such order; and

 

(j)          if
the offering is underwritten, use its Reasonable Commercial Efforts to furnish on the date that Registrable Securities are delivered
to the underwriters for sale pursuant to such registration, an opinion dated such date of counsel representing the Company for
the purposes of such registration, addressed to the underwriters covering such issues as are reasonably required by such underwriters.

 

8.5           Listing.
The Company shall secure the listing of the Common Stock underlying this Warrant upon each national securities exchange or automated
quotation system upon which shares of Common Stock are then listed or quoted (subject to official notice of issuance) and shall
maintain such listing of shares of Common Stock. The Company shall at all times comply in all material respects with the Company’s
reporting, filing and other obligations under the by-laws or rules of The NASDAQ Stock Market (or such other national securities
exchange or market on which the Common Stock may then be listed, as applicable).

 

    	8

    	 

    

 

8.6           Expenses.
The Company shall pay all Registration Expenses relating to the registration and listing obligations set forth in this Section
8. For purposes of this Warrant, the term “Registration Expenses” means: (a) all registration, filing and FINRA
fees, (b) all reasonable fees and expenses of complying with securities or blue sky laws, (c) all word processing, duplicating
and printing expenses, (d) the fees and disbursements of counsel for the Company and of its independent public accountants, including
the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance,
(e) premiums and other costs of policies of insurance (if any) against liabilities arising out of the public offering of the Registrable
Securities being registered if the Company desires such insurance, if any, and (f) fees and disbursements of one counsel for the
selling holders of Registrable Securities; provided however, that, in any case where Registration Expenses are not to be borne
by the Company, such expenses shall not include (and such expenses shall be borne by the Company): (i) salaries of Company personnel
or general overhead expenses of the Company, (ii) auditing fees, (iii) premiums or other expenses relating to liability insurance
required by underwriters of the Company, or (iv) other expenses for the preparation of financial statements or other data, to the
extent that any of the foregoing either is normally prepared by the Company in the ordinary course of its business or would have
been incurred by the Company had no public offering taken place. Registration Expenses shall not include any underwriting discounts
and commissions which may be incurred in the sale of any Registrable Securities and transfer taxes of the selling holders of Registrable
Securities.

 

8.7           Information
Provided by Holders. Any holder of Registrable Securities included in any registration shall furnish to the Company such information
as the Company may reasonably request in writing, including, but not limited to, a completed and executed questionnaire requesting
information customarily sought of selling security holders, to enable the Company to comply with the provisions hereof in connection
with any registration referred to in this Warrant.

 

8.8           FINRA
Public Offering System Filings. In the event that a registration statement covering the Registrable Securities is filed, within
one (1) Business Day of the filing of such registration statement, the Company will prepare and file the selling stockholder resale
offering described in such registration statement for review by FINRA via the FINRA’s Public Offering System filing system
(“Public Offering System Filing”) for the purpose of having the prospectus contained within such registration
statement treated as a “base prospectus” in connection with such resale offering. The Company will use its Reasonable
Commercial Efforts to have the Public Offering System Filing approved by FINRA within thirty (30) days of such filing date. The
Company shall bear all expenses of the Public Offering System Filing, including fees and expenses of one counsel or other advisor
to the Holder. In all circumstances, the Company shall pay for all FINRA filing fees associated with the Public Offering System
Filing.

 

8.9           Effectiveness
Period. The Company shall use its Reasonable Commercial Efforts to keep each registration statement contemplated hereunder
continuously effective under the Securities Act until the date which is the earlier date of when (i) all Registrable Securities
covered by such Registration Statement have been sold or (ii) all Registrable Securities covered by such Registration Statement
may be sold immediately without registration under the Securities Act and without volume restrictions pursuant to Rule 144 under
the Securities Act, as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed
and reasonably acceptable to the Company’s transfer agent and the affected holders of Registrable Securities.

 

8.10         Net
Cash Settlement. Notwithstanding anything herein to the contrary, in no event will the Holder hereof be entitled to receive
a net-cash settlement as liquidated damages in lieu of physical settlement in shares of Common Stock, regardless of whether the
Common Stock underlying this Warrant is registered pursuant to an effective registration statement; provided, however, that the
foregoing will not preclude the Holder from seeking other remedies at law or equity for breaches by the Company of its registration
obligations hereunder.

 

    	9

    	 

    

 

9.      
    Restrictions on Transfer.

 

9.1          Restrictive
Legends. This Warrant and each Warrant issued upon transfer or in substitution for this Warrant pursuant to Section 10 hereof,
each certificate for Common Stock issued upon the exercise of the Warrant and each certificate issued upon the transfer of any
such Common Stock shall be transferable only upon satisfaction of the conditions specified in this Section 9. Each of the foregoing
securities shall be stamped or otherwise imprinted with a legend reflecting the restrictions on transfer set forth herein and any
restrictions required under the Securities Act or other applicable securities laws.

 

9.2          Notice
of Proposed Transfer. Prior to any transfer of any securities which are not registered under an effective registration statement
under the Securities Act (“Restricted Securities”), which transfer may only occur if there is an exemption
from the registration provisions of the Securities Act and all other applicable securities laws, the Holder will give written notice
to the Company of the Holder’s intention to effect a transfer (and shall describe the manner and circumstances of the proposed
transfer). The following provisions shall apply to any proposed transfer of Restricted Securities:

 

(i)          If
in the opinion of counsel for the Holder reasonably satisfactory to the Company the proposed transfer may be effected without registration
of the Restricted Securities under the Securities Act (which opinion shall state in detail the basis of the legal conclusions reached
therein), the Holder shall thereupon be entitled to transfer the Restricted Securities in accordance with the terms of the notice
delivered by the Holder to the Company. Each certificate representing the Restricted Securities issued upon or in connection with
any transfer shall bear the restrictive legends required by Section 9.1 hereof.

 

(ii)         If
the opinion called for in (i) above is not delivered, the Holder shall not be entitled to transfer the Restricted Securities until
either: (x) receipt by the Company of a further notice from such Holder pursuant to the foregoing provisions of this Section 9.2
and fulfillment of the provisions of clause (i) above, or (y) such Restricted Securities have been effectively registered under
the Securities Act.

 

9.3          Certain
Other Transfer Restrictions. Notwithstanding any other provision of this Warrant: (i) prior to the Exercise Date, this Warrant
or the Restricted Securities thereunder may only be transferred or assigned to the persons permitted under FINRA Rule 5110(g),
and (ii) subject at all times to FINRA Rule 5110(g), no opinion of counsel shall be necessary for a transfer of Restricted Securities
by the holder thereof to any Person employed by or owning equity in the Holder, if the transferee agrees in writing to be subject
to the terms hereof to the same extent as if the transferee were the original purchaser hereof and such transfer is permitted under
applicable securities laws.

 

9.4          Termination
of Restrictions. Except as set forth in Section 9.3 hereof and subject at all times to FINRA Rule 5110(g), the restrictions
imposed by this Section 9 upon the transferability of Restricted Securities shall cease and terminate as to any particular Restricted
Securities: (a) which shall have been effectively registered under the Securities Act, or (b) when, in the opinion of counsel for
the Company, such restrictions are no longer required in order to insure compliance with the Securities Act or Section 10 hereof.
Whenever such restrictions shall cease and terminate as to any Restricted Securities, the Holder thereof shall be entitled to receive
from the Company, without expense (other than applicable transfer taxes, if any), new securities of like tenor not bearing the
applicable legends required by Section 9.1 hereof.

 

    	10

    	 

    

 

10.        
 Ownership, Transfer, Sale and Substitution of Warrant.

 

10.1        Ownership
of Warrant. The Company may treat any Person in whose name this Warrant is registered in the Warrant Register maintained pursuant
to Section 10.2(b) hereof as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, except
that, if and when any Warrant is properly assigned in blank, the Company may (but shall not be obligated to) treat the bearer thereof
as the owner of such Warrant for all purposes, notwithstanding any notice to the contrary. Subject to Sections 9 and 10 hereof,
this Warrant, if properly assigned, may be exercised by a new holder without a new Warrant first having been issued.

 

10.2        Office;
Exchange of Warrant.

 

(a)          The
Company will maintain its principal office at the location identified in the prospectus relating to the Offering or at such other
offices as set forth in the Company’s most current filing (as of the date notice is to be given) under the Securities Exchange
Act of 1934, as amended, or as the Company otherwise notifies the Holder.

 

(b)          The
Company shall cause to be kept at its office maintained pursuant to Section 10.2(a) hereof a Warrant Register for the registration
and transfer of the Warrant. The name and address of the holder of the Warrant, the transfers thereof and the name and address
of the transferee of the Warrant shall be registered in such Warrant Register. The Person in whose name the Warrant shall be so
registered shall be deemed and treated as the owner and holder thereof for all purposes of this Warrant, and the Company shall
not be affected by any notice or knowledge to the contrary.

 

(c)          Upon
the surrender of this Warrant, properly endorsed, for registration of transfer or for exchange at the office of the Company maintained
pursuant to Section 10.2(a) hereof, the Company at its expense will (subject to compliance with Section 9 hereof, if applicable)
execute and deliver to or upon the order of the Holder thereof a new Warrant of like tenor, in the name of such holder or as such
holder (upon payment by such holder of any applicable transfer taxes) may direct, calling in the aggregate on the face thereof
for the number of shares of Common Stock called for on the face of the Warrant so surrendered (after giving effect to any previous
adjustment(s) to the number of Warrant Shares).

 

10.3        Replacement
of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this Warrant, upon delivery of indemnity reasonably satisfactory
to the Company in form and amount or, in the case of any mutilation, upon surrender of this Warrant for cancellation at the office
of the Company maintained pursuant to Section 10.2(a) hereof, the Company will execute and deliver, in lieu thereof, a new Warrant
of like tenor and dated the date hereof.

 

10.4        Opinions.
In connection with the sale of the Warrant Shares by Holder, the Company agrees to cooperate with the Holder, and at the Company’s
expense, to have its counsel provide any legal opinions required to remove the restrictive legends from the Warrant Shares in connection
with a sale, transfer or legend removal request of Holder.

 

11.    
     No Rights or Liabilities as Stockholder. No Holder shall be entitled to vote or be
deemed the holder of any equity securities which may at any time be issuable on the exercise hereof, nor shall anything
contained herein be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock,
change of par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings until the Warrant
shall have been exercised and the shares of Common Stock purchasable upon the exercise hereof shall have become deliverable,
as provided herein.

 

    	11

    	 

    

 

12.   
      Notices. Any notice or other communication in connection with this Warrant shall
be given in writing and directed to the parties hereto as follows: (a) if to the Holder, at the address of the holder in the
warrant register maintained pursuant to Section 10 hereof, or (b) if to the Company, to the attention of its Chief Executive
Officer at its office maintained pursuant to Section 10.2(a) hereof; provided, that the exercise of the Warrant shall
also be effected in the manner provided in Section 3 hereof. Notices shall be deemed properly delivered and received when
delivered to the notice party (i) if personally delivered, upon receipt or refusal to accept delivery, (ii) if sent via
facsimile, upon mechanical confirmation of successful transmission thereof generated by the sending telecopy machine, (iii)
if sent by a commercial overnight courier for delivery on the next Business Day, on the first Business Day after deposit with
such courier service, or (iv) if sent by registered or certified mail, five (5) Business Days after deposit thereof in the
U.S. mail.

 

13.     
   Payment of Taxes. The Company will pay all documentary stamp taxes attributable to the issuance of
shares of Common Stock underlying this Warrant upon exercise of this Warrant; provided, however, that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the transfer or registration
of this Warrant or any certificate for shares of Common Stock underlying this Warrant in a name other that of the Holder. The
Holder is responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or
receiving shares of Common Stock underlying this Warrant upon exercise hereof.

 

14.      
   Miscellaneous. 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 the change, waiver, discharge or
termination is sought. This Warrant shall be construed and enforced in accordance with and governed by the laws of the State
of California. Each of the parties consents to the exclusive jurisdiction of the Federal or state courts whose districts
encompass any part of the County of Los Angeles located in the City of Los Angeles, California in connection with any dispute
arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any
objection based on forum non conveniens, to the bringing of any such proceeding in such jurisdictions. Each party to
this Agreement irrevocably consents to the service of process in any such proceeding by any manner permitted by law. The
section headings in this Warrant are for purposes of convenience only and shall not constitute a part hereof. When used
herein, the term “Reasonable Commercial Efforts” means, with respect to the applicable obligation of the
Company, reasonable commercial efforts for similarly situated, publicly-traded companies.

 

(Signature on Following
Page)

 

    	12

    	 

    

IN WITNESS WHEREOF,
the Company has caused this Underwriter Warrant to be duly executed as of the date first above written.

 

	 	SECOND SIGHT MEDICAL PRODUCTS, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	13

    	 

    

 

EXHIBIT A

FORM OF EXERCISE NOTICE

[To be executed only upon exercise of Warrant]

 

To SECOND SIGHT MEDICAL PRODUCTS, INC.:

 

The undersigned registered holder of the within Warrant hereby irrevocably
exercises the Warrant pursuant to Section 3.1 of the Warrant with respect to [_____] Warrant Shares, at an exercise price of $[____]
per share, and requests that the certificates for such Warrant Shares be issued, subject to Sections 9 and 10, in the name
of and delivered to:

 

 

 

 

 

 

 

 

 

The undersigned is hereby making payment for the Warrant Shares
in the following manner:

[check one]

 

		 ̈	by cash in accordance with Section 3.1(b) of the Warrant

 

		 ̈	via cashless exercise in accordance with Section 3.1(c) of the Warrant in the following manner:

 

 

 

 

 

 

 

 

 

The undersigned hereby represents and warrants that it is, and has
been since its acquisition of the Warrant, the record and beneficial owner of the Warrant.

 

	Dated: 	 

 

	 
	Print or Type Name
	 
	(Signature must conform in all respects to name of holder as specified on the face of Warrant)
	 
	 
	(Street Address)
	 	 	 
	 	 	 
	(City)	(State)	(Zip Code)

 

    	14

    	 

    

 

EXHIBIT B

FORM OF ASSIGNMENT

[To be executed only upon transfer of Warrant]

 

For value received, the undersigned registered holder of the within
Warrant hereby sells, assigns and transfers unto_____________________[include name and addresses] the rights represented by the
Warrant to purchase__________ shares of Common Stock of SECOND SIGHT MEDICAL PRODUCTS, INC. to which the Warrant relates, and appointsAttorney
to make such transfer on the books of SECOND SIGHT MEDICAL PRODUCTS, INC. maintained for the purpose, with full power of substitution
in the premises.

 

Dated:

	 
	(Signature must conform in all respects to name of holder as specified on the face of Warrant)
	 
	 
	(Street Address)
	 
	 
	(City)	(State)	(Zip Code)

 

Signed in the presence of:

 

	 
	(Signature of Transferee)
	 
	 
	(Street Address)
	 
	 
	(City)	(State)	(Zip Code)

 

Signed in the presence of: 

 

 

 

 

    	15

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