Document:

exv4w5

 

Exhibit 4.5

EXTERRAN HOLDINGS, INC.

DIRECTORS’ STOCK AND DEFERRAL PLAN

INTRODUCTION

     The Board of Directors (the “Board”) of Exterran Holdings, Inc., a Delaware corporation (the
“Company”), has adopted the Exterran Holdings, Inc. Directors’ Stock and Deferral Plan (the “Plan”)
covering an aggregate of 100,000 shares of common stock, $0.01 par value, of the Company (“Common
Stock”). The Plan is effective as of August 20, 2007 (“Effective Date”).

1. PURPOSE

     The purpose of the Plan is to provide non-employee directors of the Company’s Board of
Directors (the “Directors”) with an opportunity to receive Common Stock from the Company as payment
for their Director retainer fees and meeting fees (together, the “Retainer Fees”) which will :

     (a) enhance their interest in the Company’s welfare;

     (b) furnish them an additional incentive to continue their services for the Company; and

     (c) provide an additional means through which the Company may attract qualified persons
to serve on the Board.

2. ADMINISTRATION

     The Plan will be administered by a committee appointed by the Board from time to time (the
“Committee”); provided, however, that in the absence of a Committee being appointed by the Board,
the Committee shall mean the entire Board. The Committee may delegate some or all of its
administrative powers and responsibilities to such other persons from time to time as it deems
appropriate.

3. PARTICIPANTS

     Members of the Board who are not employees of the Company or any subsidiary of the Company
(“Participants”) are eligible to participate in the Plan.

4. GRANT OF STOCK

     The eligible individual Directors, on or before December 31 of each year, may elect, by filing
a written notice to the Committee, in the form and manner prescribed by the Committee (“Election
Form”), to receive a percentage equal to 25%, 50%, 75% or 100% of their Retainer Fees for the
following calendar year in the form of shares of Common Stock. Any portion of the Retainer Fees
that is not paid in the form of Common Stock will be paid to the Director in cash.

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With respect to the portion of the Retainer Fees to be paid in Common Stock for each quarter,
the number of shares for each quarter shall be determined by dividing the dollar amount of such
portion of the Retainer Fees that would otherwise be paid in cash to the Participant for such
quarter by the closing sales price per share of the Common Stock on the last day of such quarter,
as reported on the New York Stock Exchange or successor exchange (“NYSE”) or, if the Common Stock
is not listed on the NYSE, then as quoted on the National Association of Securities Dealers, Inc.
Automated Quotation System (“NASDAQ”), or if no closing sales price is reported or quoted on such
date, then the closing sales price on the last preceding day on which the Common Stock was traded,
as reported by the NYSE or NASDAQ, as the case may be. Any fractional shares shall be paid to the
Director in cash.

     The Company will issue the shares of Common Stock (in book entry form) to the Participants, as
soon as practicable after the end of the applicable quarter, but in no event later than thirty (30)
days after the end of the applicable quarter, unless the Participant has elected to defer the
receipt of the Common Stock pursuant to paragraph 5 of this Plan.

     Eligible Directors who are first elected or appointed to the Board during a particular
calendar year, provided their service as a Director commences prior to the last quarter for such
year, may participate in the Plan for that initial year of service, by filing with the Committee an
Election Form within the first thirty (30) days after the commencement date of their service as a
Director (an “Initial Year Election”). A Director’s Initial Year Election will apply solely to the
Retainer Fees to be received for the remaining full quarters of that year commencing after the date
the Election Form is filed with the Committee. A Director who initially commences service during
the last quarter of a year shall not be eligible to participate in the Plan for such commencement
year. Notwithstanding the foregoing or any other provision of the Plan to the contrary, if the
Effective Date occurs prior to the final quarter of 2007, all eligible Directors as of the
Effective Date will be entitled to make an election hereunder within thirty (30) days of the
Effective Date with respect to Retainer Fees to be received for the remaining full quarters of 2007
commencing after the Effective Date. In the event of a Participant’s death prior to the end of the
quarter, the Company shall issue the whole shares of Common Stock, with any fractional units paid
in cash, to the Participant’s estate as soon as practicable following the Participant’s death.

     Elections shall apply only to a single calendar year and shall be irrevocable for that year.
Participants shall be fully vested in their right to receive Common Stock at all times.

5. ELECTION TO DEFER

     Notwithstanding any other provision of the Plan to the contrary, at the time an eligible
Director makes an election to receive all or a portion of the Director’s Retainer Fees in the form
of shares of Common Stock, the Director also may elect, on the Election Form, to defer until a
later date the receipt of a percentage equal to 25%, 50%, 75% or 100% of the Retainer Fees that the
Participant has elected to receive in the form of Common Stock.

     Any election by an eligible Director to defer Retainer Fees for a period pursuant to this
paragraph 5 of the Plan must be made and filed with the Committee at the same time the Director

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makes the election under paragraph 4 hereunder and such election shall be irrevocable. The
deferral period may be any period of time of not less than six (6) months from the end of the
quarter the Common Stock would have otherwise been paid to the Director; provided, however, that
any deferral period shall automatically terminate upon the occurrence of a separation from service
as a Director for any reason. Notwithstanding the foregoing or any other provision of the Plan to
the contrary, no deferral under this paragraph 5 shall be permitted for Common Stock received for
2007.

     The Board, in its discretion, may accelerate the termination of deferral periods in the event
of a change in control of the Company. For purposes of the Plan, a “Change in Control” of the
Company means the occurrence of any of the following events:

     (i) the acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 40% or more of either (A) the then outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting
power of the then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”); provided, however,
that for purposes of this subparagraph (i), any acquisition by any Person pursuant to a
transaction which complies with clause (A) of subsection (iii) of this definition shall not
constitute a Change in Control; or

     (ii) Individuals, who, as of the date hereof, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company’s stockholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board shall be
considered for purposes of this definition as though such individual was a member of the
Incumbent Board, but excluding, for these purposes, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board; or

     (iii) the consummation of a reorganization, merger or consolidation involving the
Company or any of its subsidiaries, or the sale, lease or other disposition of all or
substantially all of the assets of the Company and its subsidiaries, taken as a whole (other
than to an entity wholly owned, directly or indirectly, by the Company) (each, a “Corporate
Transaction”), in each case, unless, following such Corporate Transaction, (A) all or
substantially all of the individuals and entities who were the beneficial owners of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Corporate Transaction beneficially own, directly or indirectly, more than 60% of,
respectively, the then outstanding shares of common stock and the combined voting power of
the then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the Resulting Corporation in

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substantially the same proportions as their ownership, immediately prior to such
Corporate Transaction, of the Outstanding Company Common Stock and the Outstanding Company
Voting Securities, as the case may be, and (B) at least a majority of the members of the
board of directors of the Resulting Corporation were members of the Incumbent Board at the
time of the execution of the initial agreement, or of the action of the Board, providing for
such Corporate Transaction. The term “Resulting Corporation” means (1) the Company or its
successor, or (2) if as a result of a Corporate Transaction the Company or its successor
becomes a subsidiary of another entity, then such entity or the parent of such entity, as
applicable, or (3) in the event of a Corporate Transaction involving the sale, lease or
other disposition of all or substantially all of the assets of the Company and its
subsidiaries, taken as a whole, then the transferee of such assets in such Corporate
Transaction. Notwithstanding the foregoing, neither the sale, lease or other disposition of
assets by the Company or its subsidiaries to Universal Compression Partners, L.P. or its
successor nor the sale, lease or other disposition of any interest in Universal Compression
Partners, L.P., its general partner or its successor shall, in and of itself, constitute a
Change in Control for purposes of this Plan.

In addition to meeting the requirements of an event under subparagraphs (i), (ii) or (iii) above,
the Change in Control shall meet the requirements of corporate change under Section
409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (the “Code”), and the
accompanying Treasury regulations and guidelines issued by the Internal Revenue Service.

     Any eligible Director who makes an election to defer hereunder shall be credited with phantom
units of Common Stock at the same time and in the same number (plus an amount for fractional
shares) as if such Director had elected not to defer any portion of the Retainer Fees. The phantom
units of Common Stock shall be subject to adjustment as set forth in paragraph 6 of this Plan, as
if such shares represented by such phantom units had been issued. Any dividends that are payable
with respect to outstanding Common Stock shall not be eligible for deferral hereunder and shall be
paid to eligible Directors at the same time and in the same amount as if the shares of Common Stock
represented by an electing Director’s phantom units hereunder were outstanding.

     The Company shall issue the whole shares of Common Stock (in book entry form) represented by a
Participant’s phantom units as soon as practicable after the end of the deferral period applicable
to such units, with any fractional units paid in cash, but in no event later than December 31st of
the year during which the deferral period ended or, if later, ninety (90) day after the end of the
deferral period. The foregoing notwithstanding to the contrary, in no event shall the whole shares
of Common Stock, and cash for any fractional units, represented by a Participant’s phantom units
for 2007 be issued (or paid as the case of cash for fractional shares) later than March 15, 2008.

     In the event of a Participant’s death, the Company shall issue the whole shares of Common
Stock represented by the Participant’s phantom units, with any fractional units paid in cash, to
the Participant’s estate as soon as practicable following the Participant’s death.

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6. CAPITAL ADJUSTMENTS AND REORGANIZATIONS

     The existence of the Plan shall not affect in any way the right or power of the Board or the
stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization
or other change in the Company’s or any Company affiliate’s capital structure or its business, any
merger or consolidation of the Company or any affiliate of the Company, any issue of debt or equity
securities ahead of or affecting Common Stock or the rights thereof, the dissolution or liquidation
of the Company or any affiliate or any sale, lease, exchange or other disposition of all or any
part of its assets or business or any other corporate act or proceeding.

     The shares of Common Stock available under the Plan are as presently constituted, but if, and
whenever, prior to payment of such shares, the Company shall effect a subdivision or consolidation
of shares of Common Stock or the payment of a stock dividend on Common Stock without receipt of
consideration by the Company, the number of shares of Common Stock with respect to which a
Participant may be entitled (i) in the event of an increase in the number of outstanding shares,
shall be proportionately increased, and the purchase price per share shall be proportionately
reduced, and (ii) in the event of a reduction in the number of outstanding shares shall be
proportionately reduced, and the purchase price per share shall be proportionately increased, other
than through a Company-directed share repurchase program. Any fractional share resulting from such
adjustment shall be rounded up to the next whole share.

     In the event of changes in the outstanding Common Stock by reason of recapitalization,
reorganization, merger, consolidation, combination, stock split, stock dividend, spin-off, exchange
or other relevant changes in capitalization or distributions to the holders of Common Stock
occurring prior to payment of the shares under the Plan and not otherwise provided for under the
Plan, which would have the effect of diluting or enlarging the rights of Participants, such shares
and any notice evidencing such shares shall be subject to adjustment by the Committee, in its sole
discretion, as to the number and price of such shares of Common Stock. In the event of any such
change in the outstanding Common Stock or distribution to the holders of Common Stock, or upon the
occurrence of any other event described in this paragraph 6, the aggregate number of shares
available under the Plan and the maximum number of shares that may be elected to be received by
Participants under the Plan may be appropriately adjusted to the extent, if any, determined by the
Committee, whose determination shall be conclusive.

     Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of
any class or securities convertible into shares of stock of any class, for cash, property, labor or
services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Company convertible into such shares or other
securities, and in any case whether or not for fair value, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number of shares of Common Stock due a
Participant pursuant to an election under the Plan.

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7. INTERPRETATION

     The Committee shall interpret the Plan and shall prescribe such rules and regulations in
connection with the operation of the Plan as it determines to be advisable for the administration
of the Plan. The Committee may rescind and amend its rules and regulations.

8. AMENDMENT OR DISCONTINUANCE

     The Plan may be amended or discontinued by the Board at any time.

9. EFFECT OF PLAN

     Nothing in this Plan shall be construed as conferring upon any Participant the right to
continue as a Director.

10. APPLICABLE LAW

     The Plan shall be governed by, and construed in accordance with, the laws of the State of
Delaware, without regard to its conflicts of laws principles.

6exv4w1

 

Exhibit 4.1

Execution Copy

ORION ENERGY SYSTEMS, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

August 3, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	1. Registration Rights
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Request for Registration
	 	 	3	 
	1.3 Company Registration
	 	 	4	 
	1.4 Form S-3 Registration
	 	 	6	 
	1.5 Obligations of the Company
	 	 	8	 
	1.6 Information from Holder
	 	 	9	 
	1.7 Expenses of Registration
	 	 	9	 
	1.8 Delay of Registration
	 	 	10	 
	1.9 Indemnification
	 	 	10	 
	1.10 Reports Under the 1934 Act
	 	 	13	 
	1.11 Assignment of Registration Rights
	 	 	13	 
	1.12 Limitations on Subsequent Registration Rights
	 	 	14	 
	1.13 “Market Stand Off” Agreement
	 	 	14	 
	1.14 Termination of Registration Rights
	 	 	15	 
	 
	 	 	 	 
	2. Covenants of the Company
	 	 	16	 
	2.1 Information Rights
	 	 	16	 
	2.2 Inspection
	 	 	17	 
	2.3 Termination of Information and Inspection Covenants
	 	 	17	 
	2.4 Right of First Refusal
	 	 	17	 
	2.5 Proprietary Information and Inventions Agreements
	 	 	19	 
	2.6 Lock-Up of Future Securityholders
	 	 	19	 
	2.7 D&O Insurance
	 	 	19	 
	2.8 Board of Directors
	 	 	19	 
	2.9 Board Observer
	 	 	19	 
	2.10 Related Party Transactions
	 	 	20	 
	2.11 Approval Rights
	 	 	20	 
	2.12 Termination of Certain Covenants
	 	 	21	 
	 
	 	 	 	 
	3. Transfers of Registrable Securities
	 	 	22	 
	3.1 Transfer Notice
	 	 	22	 
	3.2 Non-Exercise of Rights
	 	 	22	 
	3.3 Limitations to Company Right of First Offer
	 	 	22	 
	 
	 	 	 	 
	4. Miscellaneous
	 	 	23	 
	4.1 Successors and Assigns
	 	 	23	 
	4.2 Governing Law
	 	 	23	 
	4.3 Counterparts
	 	 	24	 
	4.4 Titles and Subtitles
	 	 	24	 
	4.5 Notices
	 	 	24	 
	4.6 Expenses
	 	 	24	 
	4.7 Amendments and Waivers
	 	 	24	 

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	 	 	Page	 
	 
	4.8 Severability
	 	 	24	 
	4.9 Aggregation of Stock
	 	 	25	 
	4.10 Waiver of Jury Trial
	 	 	25	 
	4.11 Entire Agreement
	 	 	25	 

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AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

     THIS AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (the “Agreement”) is made as of the 3rd
day of August, 2007, by and among Orion Energy Systems, Inc., a Wisconsin corporation (the
“Company”), and the investors listed on the signature pages hereto, each of which is herein
referred to as an “Investor.” This Agreement shall supersede a certain Investors’ Rights
Agreement, dated as of July 31, 2006 and the Joinder thereto dated as of September 28, 2006
(collectively, the “Original Agreement”), and such Original Agreement shall be terminated and all
rights and obligations pursuant thereto shall be of no further force and effect as of the date
hereof.

RECITALS

     WHEREAS, the Company and the Investors are parties to the Note Purchase Agreement, dated of
even date herewith (the “Note Purchase Agreement”);

     WHEREAS, in order to induce the Investors to purchase the Convertible Subordinated Promissory
Notes issued in connection with the Note Purchase Agreement (the “Notes”), the Investors and the
Company hereby agree that this Agreement shall govern the rights of the Investors to cause the
Company to register shares of Common Stock issued or issuable to them and certain other matters as
set forth herein;

     WHEREAS, the Company and certain of the Investors entered into the Original Agreement in
connection with the purchase and sale of Series C Senior Convertible Preferred Stock (the “Series C
Preferred Stock”), pursuant to Stock Purchase Agreements dated as of July 31, 2006 and September
28, 2006 (collectively, the “Series C Purchase Agreement”); and

     WHEREAS, under Section 4.7 of the Original Agreement, the Agreement may be amended by the
written consent of the Company and the holders of at least a majority of the Company’s Registrable
Securities;

     NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

     1. Registration Rights. The Company covenants and agrees as follows:

     1.1 Definitions. For purposes of this Agreement:

               (a) The term “Act” means the Securities Act of 1933, as amended.

               (b) The term “Delivery” shall have the meaning set forth in Section 4.5 below.

               (c) The term “Form S-3” means such form under the Act as in effect on the date hereof
or any
registration form under the Act subsequently adopted by the SEC that permits inclusion or
incorporation of substantial information by reference to other documents filed by the Company with
the SEC.

 

 

               (d) The term “Holder” means any person owning or having the right to acquire
Registrable
Securities or any assignee thereof in accordance with Section 1.11 hereof.

               (e) The term “Independent Director” shall have the same meaning as set forth in the
Company’s
Amended and Restated Articles of Incorporation, as amended from time to time (the “Articles”).

               (f) The term “Qualifying Public Offering” shall have the same meaning as set forth in
the
Articles.

               (g) The term “1934 Act” means the Securities Exchange Act of 1934, as amended.

               (h) The terms “register,” “registered,” and “registration” refer
to a registration effected by
preparing and filing a registration statement or similar document in compliance with the Act, and
the declaration or ordering of effectiveness of such registration statement or document.

               (i) The term “Registrable Securities” means the Common Stock issuable or issued upon
conversion of (i) the Series C Preferred Stock and (ii) the Notes, and any Common Stock of the
Company issued as (or issuable upon the conversion or exercise of any warrant, right or other
security that is issued as) a dividend or other distribution with respect to, or in exchange for,
or in replacement of, the shares referenced in (i) and (ii) above, excluding in all cases, however,
any Registrable Securities sold by a person in a transaction in which his rights under this Section
1 are not assigned.

               (j) The number of shares of “Registrable Securities” outstanding shall be determined
by the
number of shares of Common Stock outstanding that are, and the number of shares of Common Stock
issuable pursuant to then exercisable or convertible securities or debt that are, Registrable
Securities.

               (k) The term “Requesting Holder” means a Holder of the class of Series C
Preferred Stock or a
Note, as the case may be, which makes a request for registration under Section 1.2(b) hereof.

               (l) The term “Rule 144” shall mean Rule 144 under the Act.

               (m) The term “Rule 144(k)” shall mean subsection (k) of Rule 144 under
the Act.

               (n) The term “SEC” shall mean the Securities and Exchange Commission.

               (o) The term “Transfer” shall include any sale, assignment, encumbrance,
hypothecation,
pledge, conveyance in trust, gift, transfer by bequest, devise or descent, or other transfer or
disposition of any kind, including, but not limited to, transfers pursuant to divorce or legal
separation, transfers to receivers, levying creditors, trustees or

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receivers in bankruptcy
proceedings or general assignees for the benefit of creditors, whether voluntary, involuntarily or
by operation of law, directly or indirectly, of any of the Registrable Securities.

          1.2 Request for Registration.

               (a) Subject to the conditions of this Section 1.2, if the Company shall receive at any
time
beginning six (6) months after the effective date of the first underwritten public offering by the
Company pursuant to a registration statement filed with the SEC under the Act, a written request
from the Holders (for purposes of this Section 1.2, the “Initiating Holders”) that the Company file
a registration statement under the Act covering the registration of Registrable Securities with an
anticipated aggregate offering price of at least five million dollars ($5,000,000), then the
Company shall, within twenty (20) days of the receipt thereof, give written notice of such request
to all Holders, and subject to the limitations of this Section 1.2, use all commercially reasonable
efforts to effect, as soon as practicable, the registration under the Act of all Registrable
Securities that the Holders request to be registered in a written request received by the Company
within twenty (20) days of the mailing of the Company’s notice pursuant to this Section 1.2(a).

               (b) If the Initiating Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, they shall so advise the Company as a part of their request
made pursuant to this Section 1.2 and the Company shall include such information in the written
notice referred to in Section 1.2(a). In such event the right of any Holder to include its
Registrable Securities in such registration shall be conditioned upon such Holder’s participation
in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting
(unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such
Holder) to the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company (which underwriter or
underwriters shall be reasonably acceptable to a majority in interest of the Initiating Holders).
Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Company
that marketing factors require a limitation on the number of securities underwritten (including
Registrable Securities), then the Company shall so advise all Holders of Registrable Securities
that would otherwise be underwritten pursuant hereto, and the number of shares that may be included
in the underwriting shall be allocated (i) first, to Requesting Holders of Registrable Securities
who hold (or held) Series C Preferred Stock or the Notes, as the case may be, and which made the
request for registration under this Section 1.2, pro rata according to the number of shares of
Series C Preferred Stock or Common Stock issued or issuable upon conversion of the Notes held by
each such Holder; (ii) second, to Holders of Registrable Securities who hold (or held) shares of
the series of Series C Preferred Stock or Common Stock issued or issuable upon conversion of the
Notes which did not make the request for registration under this Section 1.2, pro rata according to
the number of shares of such equity
securities held by such Holder; (iii) third, to the remaining Holders of Registrable
Securities pro rata based on the number of Registrable Securities held by all such Holders; and
(iv) fourth, to the Company. In no event shall any Registrable Securities be excluded from such
underwriting

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unless all other securities are first excluded. Any Registrable Securities excluded
or withdrawn from such underwriting shall be withdrawn from the registration.

               (c) Notwithstanding the foregoing, the Company shall not be required to effect a registration
pursuant to this Section 1.2:

                    (i) in any particular jurisdiction in which the Company would be
required to execute a general
consent to service of process in effecting such registration, unless the Company is already subject
to service in such jurisdiction and except as may be required under the Act;

                    (ii) after the Company has effected pursuant to this
Section 1.2 (A) two (2) registrations
requested by the Holders of the Series C Preferred Stock or the Common Stock issued upon the
conversion thereof, and (B) two (2) registrations requested by GE Capital Equity Investments, Inc.
(“GE”), and such registrations have been declared or ordered effective;

                    (iii) during the period starting with the date sixty
(60) days prior to the Company’s good
faith estimate of the date of the filing of and ending on a date one hundred eighty (180) days
following the effective date of a Company initiated registration subject to Section 1.3 below,
provided that the Company is actively employing in good faith all commercially reasonable efforts
to cause such registration statement to become effective;

                    (iv) if the Initiating Holders propose to dispose of Registrable
Securities that may be
registered on Form S-3 pursuant to Section 1.4 hereof; or

                    (v) if the Company furnishes to Holders requesting a registration
statement pursuant to this
Section 1.2 a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board
stating that in the good faith judgment of the Board of Directors of the Company (the “Board”), it
would be seriously detrimental to the Company and its shareholders for such registration statement
to be effected at such time, in which event the Company shall have the right to defer such filing
for a period of not more than one hundred twenty (120) days after receipt of the request of the
Initiating Holders, provided that such right shall be exercised by the Company not more than once
in any twelve (12) month period and provided further that the Company shall not register any
securities for the account of itself or any other shareholder during such one hundred twenty (120)
day period (other than a registration relating solely to the sale of securities of participants in
a Company stock plan, a registration relating to a corporate reorganization or transaction under
Rule 145 of the Act, a registration on any form that does not include substantially the same
information as would be required to be included in a registration statement covering the sale of
the Registrable Securities, or a registration in which the only Common Stock being registered is
Common Stock issuable upon conversion of debt securities that are also being registered).

          1.3 Company Registration.

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               (a) If, at any time beginning six (6) months after the effective date of this Agreement
(such
six (6) month period being referred to as the “Restricted Period”), the Company proposes to
register (including for this purpose a registration effected by the Company for shareholders other
than the Holders) any of its stock or other securities under the Act in connection with the public
offering of such securities (other than a registration relating solely to the sale of securities of
participants in a Company stock plan, a registration relating to a corporate reorganization or
transaction under Rule 145 of the Act, a registration on any form that does not include
substantially the same information as would be required to be included in a registration statement
covering the sale of the Registrable Securities, or a registration in which the only Common Stock
being registered is Common Stock issuable upon conversion of debt securities that are also being
registered), the Company shall, at such time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder given within twenty (20) days after mailing
of such notice by the Company in accordance with Section 4.5, the Company shall, subject to the
provisions of Section 1.3(c), use all commercially reasonable efforts to cause to be registered
under the Act all of the Registrable Securities that each such Holder requests to be registered.
Notwithstanding the prohibition on exercising registration rights during the Restricted Period set
forth in the first sentence of this Section 1.3(a), (i) CapVest Venture Fund, LP and Technology
Transformation Venture Fund, LP may exercise such registration rights for up to one hundred twelve
thousand one hundred nine (112,109) shares of their Registrable Securities; (ii) Clean Technology
Fund II, LP may exercise such registration rights for up to one million nine thousand ninety one
(1,009,091) shares of its Registrable Securities (the shares referenced in (i) and (ii) being
referred to as the “Series C Threshold Amount”); and (iii) in the event that in any
registration within the Restricted Period any senior management employee of the Company or director
of the Company who is an employee of the Company and who is listed on Exhibit A, as long as
such person is employed by the Company (the “Senior Management Employees” and “Director Employees”)
registers more than fifteen percent (15%), on a fully diluted basis, of the number of shares held
by such Senior Management Employee or Director Employee (such figure being referred to herein as
the “Threshold Senior Management Registrable Securities”), then all of the Investors shall be
entitled to exercise such registration rights for all or any portion of their Registrable
Securities.

               (b) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 1.3 prior to the effectiveness of such
registration whether or not any Holder has elected to include securities in such registration. The
expenses of such withdrawn registration shall be borne by the Company in accordance with Section
1.7 hereof.

               (c) Underwriting Requirements. In connection with any offering involving an
underwriting of shares of the Company’s capital stock, the Company shall not be required under this
Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the
terms of the underwriting as agreed upon between the Company and the underwriters selected by the
Company (or by other persons entitled to select the underwriters) and enter into an underwriting
agreement in customary form with such underwriters, and then only in such quantity as the
underwriters determine in their sole discretion will not jeopardize the
success of the offering by the Company. If the total amount of securities, including
Registrable Securities, requested by shareholders to be included in such offering exceeds the
amount of

5

 

securities sold other than by the Company that the underwriters determine in their sole
discretion is compatible with the success of the offering, then the Company shall be required to
include in the offering only that number of such securities, including Registrable Securities, that
the underwriters determine in their sole discretion will not jeopardize the success of the
offering. In no event shall any Registrable Securities be excluded from such offering unless all
other shareholders’ securities have been first excluded. In the event that the underwriters
determine that less than all of the Registrable Securities requested to be registered after the
expiration of Restricted Period can be included in such offering, then the Registrable Securities
that are included in such offering shall be allocated (i) first, to Holders of Registrable
Securities who hold (or held) Notes or Series C Preferred Stock, pro rata according to the number
of Registrable Securities held by each such Holder; and (ii) second, to the remaining Holders of
Registrable Securities pro rata based on the number of Registrable Securities held by all such
Holders. In the event that the underwriters determine that less than all of the Registrable
Securities requested to be registered before the expiration of the Restricted Period can be
included in such offering, then the Registrable Securities that are included in such offering shall
be allocated (i) first, to Holders of Registrable Securities who hold (or held) Series C Preferred
Stock, pro rata according to the number of Registrable Securities held by each such Holder, up to
the Series C Threshold Amount; and (ii) second, after the Senior Management Employees and Director
Employees have each registered up to their Threshold Senior Management Registrable Securities, to
all Holders of Registrable Securities, pro rata according to the number of Registrable Securities
held by each such Holder of Registrable Securities held by all such Holders. Notwithstanding the
foregoing, in no event shall (i) the amount of securities of the selling Holders included in the
offering be reduced below thirty percent (30%) of the total amount of securities included in such
offering, unless such offering is the Company’s first firm commitment underwritten public offering
of its Common Stock under the Act (the “Initial Offering”), in which case the selling Holders may
be excluded if the underwriters make the determination described above and no other shareholder’s
securities are included in such offering. For purposes of the preceding sentence and for purposes
of Section 1.2(b) concerning apportionment, for any selling shareholder that is a Holder of
Registrable Securities and that is a venture capital fund, partnership or corporation, the
affiliated venture capital funds, partners, retired partners and shareholders of such Holder, or
the estates and family members of any such partners and retired partners and any trusts for the
benefit of any of the foregoing persons shall be deemed to be a single “selling Holder,” and any
pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate amount
of Registrable Securities owned by all such related entities and individuals.

          1.4 Form S-3 Registration. In case the Company shall receive from the Holders of twenty-five
percent (25%) or more of the Registrable Securities then outstanding (for purposes of this Section
1.4, the “Initiating Holders”) a written request or requests that the Company effect a registration
on Form S-3 and any related qualification or compliance with respect to all or a part of the
Registrable Securities owned by such Holder or Holders, the Company shall:

               (a) promptly give written notice of the proposed registration, and any related qualification
or compliance, to all other Holders; and

6

 

               (b) use all commercially reasonable efforts to effect, as soon as practicable, such
registration and all such qualifications and compliances as may be so requested and as would permit
or facilitate the sale and distribution of all or such portion of such Holders’ Registrable
Securities as are specified in such request, together with all or such portion of the Registrable
Securities of any other Holders joining in such request as are specified in a written request given
within fifteen (15) days after receipt of such written notice from the Company, provided, however,
that the Company shall not be obligated to effect any such registration, qualification or
compliance, pursuant to this Section 1.4:

                    (i) if Form S-3 is not available for such offering by the
Holders;

                    (ii) if the Company furnishes to Holders requesting a
registration statement pursuant to this
Section 1.4 a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board
stating that in the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its shareholders for such registration statement to be
effected at such time, in which event the Company shall have the right to defer such filing for a
period of not more than one hundred twenty (120) days after receipt of the request of the
Initiating Holders, provided that such right shall be exercised by the Company not more than once
in any twelve (12)-month period and provided further that the Company shall not register any
securities for the account of itself or any other shareholder during such one hundred twenty (120)
day period (other than a registration relating solely to the sale of securities of participants in
a Company stock plan, a registration relating to a corporate reorganization or transaction under
Rule 145 of the Act, a registration on any form that does not include substantially the same
information as would be required to be included in a registration statement covering the sale of
the Registrable Securities, or a registration in which the only Common Stock being registered is
Common Stock issuable upon conversion of debt securities other than the Note that are also being
registered); or

                    (iii) in any particular jurisdiction in which the Company would
be required to qualify to do
business or to execute a general consent to service of process in effecting such registration,
qualification or compliance.

               (c) If the Initiating Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, they shall so advise the Company as a part of their request
made pursuant to this Section 1.4 and the Company shall include such information in the written
notice referred to in Section 1.4(a). The provisions of Section 1.2(b) shall be applicable to such
request (with the substitution of Section 1.4 for references to Section 1.2).

               (d) Subject to the foregoing, the Company shall file a registration statement covering the
Registrable Securities and other securities so requested to be registered as soon as practicable
after receipt of the request or requests of the Initiating Holders. Registrations
effected pursuant to this Section 1.4 shall not be counted as requests for registration
effected pursuant to Section 1.2 and thus not subject to the limitations found in Section
1.2(c)(ii).

7

 

          1.5 Obligations of the Company. Whenever required under this Section 1 to effect the
registration of any Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

               (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use all commercially reasonable efforts to cause such registration statement to
become effective, and, upon the request of the Holders of a majority of the Registrable Securities
registered thereunder, keep such registration statement effective for a period of up to one hundred
twenty (120) days or, if earlier, until the distribution contemplated in the Registration Statement
has been completed; provided, however, that such 120 day period shall be extended for a period of
time equal to the period of time that the Holders refrain from selling any securities included in
such registration upon the request of the Company or the underwriters;

               (b) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Act with respect to the disposition of all
securities covered by such registration statement;

               (c) furnish to the Holders such number of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable Securities owned by them;

               (d) use all commercially reasonable efforts to register and qualify the securities covered by
such registration statement under such other securities or Blue Sky laws of such jurisdictions as
shall be reasonably requested by the Holders, provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions;

               (e) in the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter of such
offering; and furnish, at the request of any Holder requesting registration of Registrable
Securities pursuant to this Section 1, on the date that such Registrable Securities are delivered
to the underwriters for sale in connection with a registration pursuant to this Section 1, if such
securities are being sold through underwriters, (i) an opinion, dated such date, of the counsel
representing the Company for the purposes of such registration, in form and substance as is
customarily given to underwriters in an underwritten public offering, addressed to the underwriters
and (ii) a letter dated such date, from the independent certified public accountants of the
Company, in form and substance as is customarily given by independent certified accountants to
underwriters in an underwritten public offering, addressed to the underwriters;

               (f) notify each Holder of Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the Act of the happening
of any event as a result of which the prospectus included in such

8

 

registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing, and the Company shall promptly either amend such
prospectus or file a supplement, in compliance with state and federal securities laws, to correct
such untrue statement of material fact or omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing;

               (g) cause all such Registrable Securities registered pursuant to this Section 1 to be
listed
on a national exchange or trading system and on each securities exchange and trading system on
which similar securities issued by the Company are then listed;

               (h) provide a transfer agent and registrar for all Registrable Securities registered pursuant
hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the
effective date of such registration;

               (i) notify each Holder promptly after the Company receives notice thereof, of the time when
such registration statement has become effective or a supplement of such registration has been
filed;

               (j) advise each Holder promptly after the Company shall receive notice or obtain knowledge
thereof, of the issuance of any stop order by the SEC suspending the effectiveness of such
registration statement or the threatening of any proceeding for such purpose and promptly use all
commercially reasonable efforts to prevent the issuance of any stop order should such be issued;
and

               (k) make generally available to its security holders, and to deliver to the Holders an
earnings statement of the Company (that will satisfy the provisions of Section 11(a) of the Act)
covering a period of twelve (12) months beginning after the effective date of the registration
statement (as defined in Rule 158(c) under the Act) as soon as is reasonably practicable after the
termination of such twelve (12) month period and upon the request of a Holder.

          1.6 Information from Holder. It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of
any selling Holder that such Holder shall furnish to the Company such information regarding itself,
the Registrable Securities held by it, and the intended method of disposition of such securities as
shall be reasonably required to effect the registration of such Holder’s Registrable Securities.

          1.7 Expenses of Registration. All expenses other than underwriting discounts and commissions (which shall be borne by the
selling Holders pro rata based on the number of Registrable Securities included in the
registration) incurred in connection with registrations, filings or qualifications pursuant to
Sections 1.2, 1.3 and 1.4, including (without limitation) all registration, filing and
qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the
Company and the reasonable fees and disbursements of one counsel for the

9

 

selling Holders shall be
borne by the Company. In the event the Holders of the Series C Preferred Stock elect to retain
separate counsel to represent them in connection with registrations, filings or qualifications
pursuant to Sections 1.2, 1.3 and 1.4, all expenses other than underwriting discounts and
commissions (which shall be borne by the selling Holders of the Series C Preferred Stock pro rata
based on the number of Registrable Securities included in the registration) incurred in connection
with such registrations, filings or qualifications, including (without limitation) all
registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements
of counsel for the Company and the reasonable fees and disbursements of one counsel for all such
selling Holders, shall be borne by the Company in an amount not to exceed $50,000 per offering.
Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any
registration proceeding begun pursuant to Section 1.2 or Section 1.4 if the registration request is
subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to
be registered (in which case all participating Holders shall bear such expenses pro rata based upon
the number of Registrable Securities that were to be included in the withdrawn registration),
unless, in the case of a registration requested under Section 1.2, the Holders of a majority of the
Registrable Securities agree to forfeit their right to one demand registration pursuant to Section
1.2; provided, however, that if at the time of such withdrawal, the Holders have learned of a
material adverse change in the condition, business or prospects of the Company from that known to
the Holders at the time of their request and have withdrawn the request with reasonable promptness
following disclosure by the Company of such material adverse change, then the Holders shall not be
required to pay any of such expenses and shall retain their rights pursuant to Sections 1.2 and
1.4.

          1.8 Delay of Registration. No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the result of any controversy that might
arise with respect to the interpretation or implementation of this Section 1.

          1.9 Indemnification. In the event any Registrable Securities are included in a registration
statement under this Section 1:

               (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder,
the partners, officers, directors, partners, members and shareholders of each Holder, legal counsel
and accountants for each Holder, any underwriter (as defined in the Act) for such Holder and each
person, if any, who controls such Holder or underwriter within the meaning of the Act or the 1934
Act, against any losses, claims, damages or liabilities (joint or several) to which they may become
subject under the Act, the 1934 Act, any other federal or
state securities laws or any rule or regulation promulgated thereunder, insofar as such
losses, claims, damages, or liabilities (or actions, proceedings or settlements in respect thereof)
arise out of or are based upon any of the following statements, omissions or violations
(collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material
fact contained in such registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged
omission to state in such registration statement 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 Act, the 1934 Act, any other federal or state securities laws or
any rule or regulation promulgated thereunder, and the Company will reimburse each such Holder,
underwriter,

10

 

controlling person or other aforementioned person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action, proceeding or settlement as such expenses are incurred; provided,
however, that the indemnity agreement contained in this Section 1.9(a) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action, proceeding or settlement
if such settlement is effected without the consent of the Company (which consent shall not be
unreasonably withheld or delayed), nor shall the Company be liable in any such case for any such
loss, claim, damage, liability or action, proceeding or settlement to the extent that it arises out
of or is based upon a Violation that occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by any such Holder,
underwriter, controlling person or other aforementioned person; provided further, however, that the
foregoing indemnity agreement with respect to any preliminary prospectus shall not inure to the
benefit of any Holder or underwriter or other aforementioned person, or any person controlling such
Holder or underwriter, from whom the person asserting any such losses, claims, damages or
liabilities purchased shares in the offering, if a copy of the most current prospectus was not sent
or given by or on behalf of such Holder or underwriter or other aforementioned person to such
person, if required by law to have been so delivered, at or prior to the written confirmation of
the sale of the shares to such person, and if the prospectus (as so amended or supplemented) would
have cured the defect giving rise to such loss, claim, damage or liability and provided that the
Company had made available such prospectus for delivery by such Holder or underwriter.

               (b) To the extent permitted by law, each selling Holder will indemnify and hold harmless the
Company, each of its directors, each of its officers who has signed the registration statement,
each person, if any, who controls the Company within the meaning of the Act, legal counsel and
accountants for the Company, any underwriter, any other Holder selling securities in such
registration statement and any controlling person of any such underwriter or other Holder, against
any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons
may become subject, under the Act, the 1934 Act, any other federal or state securities laws or any
rule or regulation promulgated thereunder, insofar as such losses, claims, damages or liabilities
(or actions, proceedings or settlements in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished by such Holder expressly for use
in connection with such registration; and each such Holder will reimburse any person intended to be
indemnified pursuant to this Section 1.9(b) for any legal or
other expenses reasonably incurred by such person in connection with investigating or
defending any such loss, claim, damage, liability or action, proceeding or settlement as such
expenses are incurred; provided, however, that the indemnity agreement contained in this Section
1.9(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or
action, proceeding or settlement if such settlement is effected without the consent of the Holder
(which consent shall not be unreasonably withheld), and provided that in no event shall any
indemnity under this Section 1.9(b) exceed the net proceeds from the offering received by such
Holder, except in the case of fraud or willful misconduct by such Holder.

               (c) Promptly after receipt by an indemnified party under this Section 1.9 of notice of the
commencement of any action, proceeding or settlement (including any

11

 

governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party
under this Section 1.9, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume the defense thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties that may be represented
without conflict by one counsel) shall have the right to retain one separate counsel, with the fees
and expenses to be paid by the indemnifying party, if representation of such indemnified party by
the counsel retained by the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party represented by such counsel
in such proceeding. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, if prejudicial to its ability to defend
such action, shall relieve such indemnifying party of liability to the indemnified party under this
Section 1.9 to the extent of such prejudice, but the omission to so deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.9.

               (d) The foregoing indemnity agreements of the Company and the selling Holders are subject to
the condition that, insofar as they relate to any loss, liability, claim, damage or expense
referred to herein arising from any untrue statement or alleged untrue statement of a material fact
contained in, or omission or alleged omission of a material fact from, a preliminary prospectus (or
necessary to make the statements therein not misleading) that has been corrected in the form of
prospectus included in the registration statement at the time it becomes effective, or any
amendment or supplement thereto filed with the SEC pursuant to Rule 424(b) under the Securities Act
(the “Final Prospectus”), such indemnity agreement shall not inure to the benefit of any Person if
a copy of the Final Prospectus was furnished to the indemnified party and such indemnified party
failed to deliver, at or before the confirmation of the sale of the shares registered in such
offering, a copy of the Final Prospectus to the Person asserting the loss, liability, claim, or
damage in any case in which such delivery was required by the Securities Act.

               (e) If the indemnification provided for in this Section 1.9 is held by a court of
competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim,
damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute, subject to the limitations
described in Sections 1.9(a) and 1.9(b), to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and the
indemnified party on the other hand in connection with the statements or omissions that resulted in
such loss, liability, claim, damage or expense, as well as any other relevant equitable
considerations; provided, however, that no contribution by any Holder, when combined with any
amounts paid by such Holder pursuant to Section 1.9(b), shall exceed the net proceeds from the
offering received by such Holder, except in the case of willful misconduct or fraud by such Holder.
The relative fault of the indemnifying party and the indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information furnished
expressly for use in

12

 

connection with such registration by the indemnifying party or by the
indemnified party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission; provided, however, that, in any such
case, no Person guilty of fraudulent misrepresentation (within the meaning of section 11(f) of the
Securities Act) will be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

               (f) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control; provided that should the underwriting agreement not address
an aspect of indemnification and contribution contained in this Section 1.9, that shall not
constitute a conflict for purposes of this Section 1.9(f).

               (g) The obligations of the Company and Holders under this Section 1.9 shall survive the
completion of any offering of Registrable Securities in a registration statement under this Section
1 and otherwise.

          1.10 Reports Under the 1934 Act. With a view to making available to the Holders the benefits
of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to
sell securities of the Company to the public without registration or pursuant to a registration on
Form S-3, the Company agrees to:

               (a) make and keep public information available, as those terms are understood and defined in
Rule 144, at all times after the effective date of the Qualifying Public Offering;

               (b) file with the SEC in a timely manner all reports and other documents required of the
Company under the Act and the 1934 Act; and

               (c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied with the reporting
requirements of Rule 144 (at any time after ninety (90) days after the effective
date of the first registration statement filed by the Company), the Act and the 1934 Act (at
any time after it has become subject to such reporting requirements), or that it qualifies as a
registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies);
(ii) a copy of the most recent annual or quarterly report of the Company and such other reports and
documents so filed by the Company; and (iii) such other information as may be reasonably requested
to avail any Holder of any rule or regulation of the SEC that permits the selling of any such
securities without registration or pursuant to such form.

          1.11 Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Section 1 may be assigned (but only with all related
obligations) by a Holder to a transferee or assignee of such securities that (i) is a subsidiary,
parent or other corporate affiliate of a Holder, or a partner, limited partner, retired partner or
shareholder of a Holder; (ii) is a Holder’s family member or trust for the benefit of an

13

 

individual
Holder; or (iii) after such assignment or transfer, holds at least two hundred fifty thousand
(250,000) shares of Registrable Securities (subject to appropriate adjustment for stock splits,
stock dividends, combinations or the like), provided: (A) the Company is, within a reasonable time
after such transfer, furnished with written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are being assigned; (B)
such transferee or assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement, including, without limitation, the provisions of Section 1.13 below;
and (C) such assignment shall be effective only if immediately following such transfer the further
disposition of such securities by the transferee or assignee is restricted under the Act.

          1.12 Limitations on Subsequent Registration Rights. From and after the date of this
Agreement, the Company shall not, without the prior written consent of the Holders of at least a
majority of the Registrable Securities and the Holders of at least a majority of the shares of
Common Stock issuable upon conversion of the Notes, enter into any agreement with any holder or
prospective holder of any securities of the Company that would allow such holder or prospective
holder (a) to include any of such securities in any registration filed under Section 1.2, Section
1.3 or Section 1.4 hereof, unless under the terms of such agreement, such holder or prospective
holder may include such securities in any such registration only to the extent that the inclusion
of such securities will not reduce the amount of the Registrable Securities of the Holders that are
included, or (b) to demand registration of their securities.

          1.13 “Market Stand Off” Agreement.

               (a) Each holder of equity securities of the Company that is a party to this Agreement (a
“Company Stockholder”) hereby agrees that it will not, without the prior written consent of the
managing underwriter, during the period commencing on the date of the final prospectus relating to
the Initial Offering and ending on the date specified by the Company
and the managing underwriter (such period not to exceed (a) one hundred eighty (l80) days (or
such longer period as the underwriters or the Company shall require in order to facilitate
compliance with NASD Rule 2711)) with respect to the Company’s Initial Offering and (b) ninety (90)
days with respect to a Company underwritten offering other than the Initial Offering, (i) lend,
offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or
dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into
or exercisable or exchangeable for Common Stock held immediately prior to the effectiveness of the
Registration Statement for such offering, or (ii) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of the
Common Stock, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Stock or other securities, in cash or otherwise. The foregoing provisions of
this Section 1.13 shall not apply to the sale of any shares to an underwriter pursuant to an
underwriting agreement. In addition, the provisions of this Section 1.13 shall only be applicable
to the Company Stockholders if (X) all officers and directors of the Company serving in such
positions as of the date hereof and any additional persons serving in any such positions on the
date of the applicable offering enter into similar agreements, (Y) the Company obtains a similar
covenant from the holders in interest of two percent (2%) or more of the outstanding securities of

14

 

the Company, and (Z) the Company uses all reasonable efforts to obtain a similar covenant from the
holders in interest of one percent (1%) or more of the outstanding securities of the Company. The
underwriters in connection with the Company’s Initial Offering are intended third-party
beneficiaries of this Section 1.13 and shall have the right, power and authority to enforce the
provisions hereof as though they were a party hereto. Each Company Stockholder further agrees to
execute such agreements as may be reasonably requested by the underwriters in the Company’s Initial
Offering that are consistent with this Section 1.13 or that are necessary to give further effect
thereto. Any discretionary waiver or termination of the restrictions of any or all of such
agreements or this Section 1.13 by the Company or the underwriters shall apply to all holders of
capital stock of the Company subject to such agreements pro rata based on the number of shares
subject to such agreements.

          In order to enforce the foregoing covenant, the Company may impose stop transfer instructions
with respect to the Registrable Securities of each Company Stockholder (and the shares or
securities of every other person subject to the foregoing restriction) until the end of such
period.

               (b) Each Company Stockholder agrees that a legend reading substantially as follows shall be
placed on all certificates representing all Registrable Securities of each Company Stockholder (and
the shares or securities of every other person subject to the restriction contained in this Section
1.13):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP
PERIOD OF UP TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE ISSUER’S
REGISTRATION STATEMENT FILED UNDER THE ACT, AS AMENDED, AS SET FORTH IN AN
AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, A
COPY OF WHICH
MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS
BINDING ON TRANSFEREES OF THESE SHARES.

          1.14 Termination of Registration Rights. No Holder shall be entitled to exercise any right
provided for in this Section 1 (i) after five (5) years following the consummation of the
Qualifying Public Offering; (ii) as to any Holder, such earlier time after the Qualifying Public
Offering at which such Holder can sell all shares held by it in compliance with Rule 144(k); or
(iii) when the Company shall sell, convey, or dispose of all or substantially all of the Company’s
property or business or merge with or into or consolidate with any other corporation (other than a
wholly-owned subsidiary corporation) or effect any other transaction or series of related
transactions in which more than fifty percent (50%) of the voting power of the Company is disposed
of, in each case in a transaction in which the Holders receive, or at such later time at which the
Holders receive, cash, cash equivalents or Marketable Securities (as defined below) in
consideration for the Registrable Securities held by them; provided that this Section 1.14 shall
not cause the Holders’ registration rights to terminate following a merger effected solely for the
purpose of changing the domicile of the Company. For purposes of this Agreement, the term
“Marketable Securities” means securities that are listed on a national

15

 

securities exchange or
listed on the NASDAQ National Market System and either (i) freely tradeable by the Holders under
applicable securities laws on such exchange or system, or (ii) with respect to which the Holder has
received registration rights materially similar to those provided under Section 1 of this
Agreement.

          2. Covenants of the Company.

          2.1 Information Rights. For so long as an Investor (together with its respective affiliates)
continues to own at least ten percent (10%) of the Registrable Securities purchased pursuant to (i)
the Series C Purchase Agreement, or (ii) the Note Purchase Agreement, the Company shall deliver to
each Investor:

               (a) as soon as practicable, but in any event within one hundred twenty (120) days after
the
end of each fiscal year of the Company, an income statement for such fiscal year, a balance sheet
of the Company and statement of shareholders’ equity as of the end of such year, and a statement of
cash flows for such year, such year end financial reports to be in reasonable detail, prepared in
accordance with generally accepted accounting principles (“GAAP”), and audited and certified by
independent public accountants of nationally recognized standing selected by the Company;

               (b) as soon as practicable, but in any event within forty-five (45) days after the end of
each
of the first three (3) quarters of each fiscal year of the Company, an unaudited income statement,
statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of
such fiscal quarter;

               (c) within forty-five (45) days of the end of each month an unaudited income statement,
statement of cash flows and balance sheet for and as of the end of such month, in reasonable
detail;

               (d) as soon as practicable, but in any event no later than the fifteenth (15th) of March of
each fiscal year, a budget and business plan for the next fiscal year, prepared on a monthly basis,
and, as soon as prepared, any other budgets or revised budgets prepared by the Company;

               (e) with respect to the financial statements called for in Sections 2.1(b) and 2.1(c), an
instrument executed by the Chief Financial Officer or President of the Company certifying that such
financials were prepared in accordance with GAAP consistently applied with prior practice for
earlier periods (with the exception of footnotes that may be required by GAAP) and fairly present
the financial condition of the Company and its results of operation for the period specified,
subject to year-end audit adjustment;

               (f) notices of default with respect to any obligation of the Company or its affiliates; and

               (g) such other information relating to the financial condition, business or corporate affairs
of the Company as the Investor may from time to time request, provided, however, that the Company
shall not be obligated under this Section 2.1(g) or any other

16

 

subsection of Section 2.1 to provide
information that it deems in good faith to be a trade secret or similar confidential information.

          2.2 Inspection. The Company shall permit each Investor, at such Investor’s expense, to visit
and inspect the Company’s properties, to examine its books of account and records and to discuss
the Company’s affairs, finances and accounts with its officers, all at such times during normal
business hours as may be requested by the Investor with reasonable advance notice; provided,
however, that the Company shall not be obligated pursuant to this Section 2.2 to provide access to
any information that it reasonably considers to be a trade secret or similar confidential
information.

          2.3 Termination of Information and Inspection Covenants. The covenants set forth in Sections
2.1 and 2.2 shall terminate and be of no further force or effect upon the earlier to occur of (i)
the consummation of a QIPO, (ii) when the Company first becomes subject to the periodic reporting
requirements of Sections 12(g) or 15(d) of the 1934 Act, or (iii) the consummation of a Deemed
Liquidation Event, as that term is defined in the Articles. Further, such covenants will terminate
and be of no further force or effect with respect to any Holder of a Note if such Holder does not
continue to hold an interest in the Note purchased by such Holder equal to at least thirty-three
percent (33%) of the balance of such Note (or the Common Stock into which such Note may have been
converted).

          2.4 Right of First Refusal. Subject to the terms and conditions specified in this Section 2.4, the Company hereby
grants to each Investor a right of first refusal to purchase all or any portion of its pro rata
portion of future sales by the Company of its Shares (as hereinafter defined). An Investor shall
include any general partners and affiliates of an Investor. Investors shall be entitled to
apportion the right of first refusal hereby granted it among itself and its partners and affiliates
in such proportions as it deems appropriate.

          Each time the Company proposes to offer any shares of, or securities convertible into or
exchangeable or exercisable for any shares of, its capital stock or debt instruments that are
issued along with warrants to purchase any of the foregoing (collectively, “Shares”), the Company
shall first make an offering to each Investor to purchase all or a portion of its pro rata portion
of such Shares in accordance with the following provisions:

               (a) The Company shall deliver a notice in accordance with Section 4.5 to the Investors
stating
(i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and
(iii) the price and terms upon which it proposes to offer such Shares.

               (b) By written notification received by the Company within twenty (20) calendar days after
the
giving of Notice, each Investor may elect to purchase, at the price and on the terms specified in
the Notice, up to that portion of such Shares that equals the proportion that the number of shares
of Common Stock that are Registrable Securities issued and held by such Investor (assuming full
conversion and exercise of all convertible and exercisable securities then outstanding) bears to
the total number of shares of Common Stock of the Company then outstanding (assuming full
conversion and exercise of all convertible and exercisable securities then outstanding). The
Company shall promptly, in writing, inform each

17

 

Investor that elects to purchase all the shares
available to it (a “Fully-Exercising Investor”) of any other Investor’s failure to do likewise.
During the ten (10) day period commencing after such information is given, each Investor that is a
Fully-Exercising Investor may elect to purchase that portion of the Shares for which the Investors
were entitled to subscribe, but which were not subscribed for by the Investors, that is equal to
the proportion that the number of shares of Registrable Securities issued and held by such
Fully-Exercising Investor bears to the number of shares of Registrable Securities issued and held
by all Investors that are Fully-Exercising Investors.

               (c) If all Shares that Investors are entitled to obtain pursuant to Section 2.4(b) are not
elected to be obtained as provided in Section 2.4(b) hereof, the Company may, during the ninety
(90) day period following the expiration of the period provided in Section 2.4(b) hereof, offer the
remaining unsubscribed portion of such Shares to any person or persons at a price not less than
that, and upon terms no more favorable to the offeree than those, specified in the Notice. If the
Company does not enter into an agreement for the sale of the Shares within such period, or if such
agreement is not consummated within seventy-five (75) days of the execution thereof, the right
provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first
reoffered to the Investors in accordance herewith.

               (d) The right of first refusal in this Section 2.4 shall not be applicable to (i) up
to two
hundred seventeen thousand two hundred sixty eight (217,268) shares of
Common Stock (or options therefor) (subject to adjustment for stock splits, stock dividends,
recapitalizations and similar changes affecting the capital stock of the Company) to employees,
directors, consultants and other service providers of this corporation for the primary purpose of
soliciting or retaining their services pursuant to plans or agreements approved by a majority of
the Independent Directors; (ii) the issuance of securities pursuant to a Qualifying Public
Offering; (iii) the issuance of securities pursuant to the conversion or exercise of existing
convertible or exercisable securities or securities, the issuance of which would not be subject to
the right of first refusal set forth in Section 2.4 of this Agreement; (iv) the issuance of up to
an aggregate of one hundred thousand (100,000) shares of Common Stock (or securities convertible
into Common Stock) in connection with a bona fide business acquisition of or by the Company,
whether by merger, consolidation, sale of assets, sale or exchange of stock or otherwise; (v) the
issuance and sale of the Notes pursuant to the Note Purchase Agreement, as such agreement may be
amended; (vi) up to fifty thousand (50,000) shares of equity securities per year (subject to
adjustment for stock splits, stock dividends, recapitalizations and similar changes affecting the
capital stock of the Company) issued to vendors, consultants or advisors or in connection with
acquisitions, which grant, agreement or other arrangement has been approved by a majority of the
Independent Directors; (vii) shares of Common Stock or warrants to purchase Common Stock issued
pursuant to any strategic partnership, in each case approved by a majority of the Independent
Directors; and (viii) any securities issued in connection with any stock split, stock dividend or
recapitalization by the Company that affects all outstanding capital stock of the Company. In
addition to the foregoing, the right of first refusal in this Section 2.4 shall not be applicable
with respect to any Investor in any subsequent offering of Shares if (i) at the time of such
offering, the Investor is not an “accredited investor,” as that term is then defined in Rule 501(a)
of the Act, and (ii) such offering of Shares is otherwise being offered only to accredited
investors.

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               (e) The rights provided in this Section 2.4 may not be assigned or transferred by any
Investor; provided, however, that (i) an Investor may assign or transfer such rights to any other
entity which controls, is controlled by or is under common control with the Investor or any entity
that is managed by the same joint management company of the Investor or any entity that is the
general partner or limited partner of the Investors, and (ii) an Investor that is a venture capital
fund may assign or transfer such rights to an affiliated venture capital fund.

          2.5 Proprietary Information and Inventions Agreements. The Company has caused each of the
persons listed on Schedule 2.5 attached hereto to execute and deliver a Proprietary Information and
Intellectual Property Agreement (a “Proprietary Information Agreement”) in form and substance
reasonably satisfactory to the Investors. Company shall use commercially reasonable efforts to
cause all officers, key management employees and employees involved in research and development
activities who are not listed on Schedule 2.5 attached hereto to execute and deliver a Proprietary
Information Agreement within thirty (30) days of the date of this Agreement, and shall require all
future officers, key management employees and employees involved in research and development
activities to execute and deliver a Proprietary Information Agreement.

          2.6 Lock-Up of Future Securityholders. The Company shall ensure that all future holders of the Company’s Series C
Preferred Stock
and Notes are subject to a Market Stand-Off substantially similar to that set forth in Section 1.13
hereof.

          2.7 D&O Insurance. The Company has as of the date hereof, obtained from financially sound and
reputable insurer(s) and maintains director and officer liability insurance in the amount of at
least two million dollars ($2,000,000) per occurrence.

          2.8 Board of Directors. The Board shall consist of not less than six (6) and not more than
nine (9) members, at least a majority of whom shall be Independent Directors. Hiring and dismissal
of officers shall be under the purview of the Board, and the Board shall have exclusive authority
over all equity incentive grants and senior management compensation decisions; provided, however,
that without the prior written consent of the parties holding a majority of the Series C Preferred
Stock and the consent of parties holding a majority of shares of Common Stock issued or issuable
upon conversion of the Notes, which consent shall not be unreasonably withheld, the Board will not
materially increase the salary, bonuses, benefits or other compensation of the Company’s
management. For the avoidance of doubt, references to the Board in the previous sentence shall
include the Compensation Committee of the Board (the “Compensation Committee”), to the extent
appropriate and consistent with the charter of the Compensation Committee. The Board shall review
and approve the Company’s operating plan and budget annually as well as any material deviations
from or amendments to such plans and budgets.

          2.9 Board Observer.

               (a) The Investors holding a majority of the Registrable Securities issued or issuable upon
conversion of the Series C Preferred Stock shall be entitled to nominate one (1) Board observer
(the “Board Observer”) with full rights to observe and attend any and all

19

 

meetings and other
proceedings of the Company’s Board of Directors and to receive all notices and information provided
to the members of the Board. All out-of-pocket expenses of the Board Observer resulting from his
or her activities in such capacity shall be reimbursed by the Company. The right to appoint the
Board Observer pursuant to this Section 2.9(a) shall be transferable to any transferee of the
Investors holding shares of Series C Preferred Stock only to the extent that the transfer of such
rights has been consented to by a majority of the Board, which consent shall not be unreasonably
withheld.

               (b) The Investors holding a majority of the Registrable Securities issued or issuable upon
conversion of the Notes shall be entitled to nominate one (1) Board Observer with full rights to
observe and attend any and all meetings and other proceedings of the Company’s Board of Directors
and to receive all notices and information provided to the members of the Board. All out-of-pocket
expenses of the Board Observer resulting from his or
her activities in such capacity shall be reimbursed by the Company. The right to appoint the
Board Observer pursuant to this Section 2.9(b) shall be transferable to any transferee of the
Investors holding a Note only to the extent that the transfer of such rights has been consented to
by a majority of the Board, which consent shall not be unreasonably withheld. The Investors shall,
to the extent practicable, appoint a Board Observer designated by GE Energy Financial Services,
Inc.

          2.10 Related Party Transactions. The Company will not enter into any transaction with any
employee, officer, director or shareholder of the Company or any of its subsidiaries (a “Related
Party”) or member of such Related Party’s immediate family, or any corporation, partnership or
other entity in which such Related Party is an officer, director or partner, or in which such
Related Party has significant ownership interests or otherwise controls, is indebted to the Company
or any of its subsidiaries, other than on arms’-length basis as reasonably determined a majority of
the Independent Directors.

          2.11 Approval Rights. The approval of the Investors holding a majority of the shares of
Common Stock issued or issuable upon conversion of the Notes shall be required to (whether effected
as a merger, amendment or otherwise):

               (a) commence or consent to any voluntary or involuntary bankruptcy, insolvency or
creditors’
proceeding;

               (b) amend, alter or repeal any provision of the Articles of Incorporation or Bylaws of the
Company other than in connection with a QIPO (as defined in the Notes) in a manner that adversely
affects the rights or preferences of the holders of the Notes or the holders of the shares of
Common Stock issued or issuable upon conversion of the Notes;

               (c) recapitalize, create or authorize the creation of any additional class or series of shares
of stock;

               (d) increase or decrease (other than by redemption or conversion) the authorized number of
shares of Preferred Stock of the Company, Common Stock or shares of any additional class or series
of shares of stock;

20

 

               (e) purchase or redeem, or set aside any sums for the purchase or redemption of, or pay any
dividend or make any distribution on, any shares of stock ranking junior to the Notes, except for
repurchases of Series C Preferred Stock in accordance with Section 3.9.6 of the Articles;

               (f) authorize or issue any equity securities other than the following authorizations or
issuances:

                    (i) Common Stock pursuant to the Company’s stock purchase
and stock option plans approved by a
majority of the members of the Board of Directors who are not employees of the Company and were not
employees of the Company during the twenty-four month period prior to the date of such approval
(the “Independent Directors”);

                    (ii) shares of Common Stock issued pursuant to the exercise of
options, warrants or
convertible securities outstanding on the date hereof or otherwise permitted in accordance with the
terms of this Section 2.11(f);

                    (iii) shares of Common Stock or warrants to purchase Common Stock
issued pursuant to any
strategic partnership, in each case approved by a majority of the Independent Directors; and

                    (iv) an aggregate of 50,000 shares of new equity per year granted
to vendors, consultants,
advisors or in small acquisitions, which plans, partnership arrangements or grants have been
approved by a majority of the Independent Directors;

               (g) engage in any new line of business substantially outside of the business plan in the form
approved by a majority of the Independent Directors or materially modifying such plan, unless
approved in each case by a majority of the Independent Directors;

               (h) merge with or into or consolidate, or permit any subsidiary to merge with or into or
consolidate, with any other entity (other than a merger or consolidation solely between the Company
and one or more subsidiaries or among subsidiaries);

               (i) sell, lease, or otherwise dispose of all or substantially all of the Company’s
properties
or assets; or

               (j) commence any initial public offering that is not a QIPO.

          Any modification or restructuring that would affect the Common Stock, whether effected as a
merger, amendment or otherwise, shall require the approval of the Investors holding a majority of
the shares of Common Stock issued or issuable upon conversion of the Notes.

          2.12 Termination of Certain Covenants. The covenants set forth in Sections 2.4 through 2.11
shall terminate and be of no further force or effect (i) upon the consummation of a QIPO, or (ii)
upon a QExit. The covenants set forth in Section 3 shall terminate and be of no further force or
effect (i) upon the consummation of the Company’s sale of its Common Stock or other securities
pursuant to an Initial Offering, or (ii) upon a Deemed Liquidation Event.

21

 

          3. Transfers of Registrable Securities.

          3.1 Transfer Notice. If at any time an Investor desires to Transfer any Registrable Securities (a “Selling
Investor”), the Selling Investor shall promptly give the Company written notice thereof (the
“Transfer Notice”). The Transfer Notice shall include a description and the amount of the
Registrable Securities that the Selling Investor desires to Transfer (for the purposes of this
Section 3, the “Offered Shares”). In the event that the Transfer is being made pursuant to the
provisions of Section 3.3, the Transfer Notice shall state under which specific subsection the
Transfer is being made. If the Company so elects within ten (10) days following receipt of such
notice, the Company shall have the right, on an exclusive basis, for a period of forty-five (45)
days after receipt of such notice to negotiate with the Selling Investor with respect to a
definitive agreement for the sale and purchase of all (and not less than all) of the Offered
Shares. The Selling Investor and the Company shall negotiate in good faith the terms and
conditions of any such agreement.

          3.2 Non-Exercise of Rights. To the extent that the Company does not exercise its right to
negotiate with the Selling Investor or the Company and the Selling Investor do not reach an
agreement for the sale and purchase of the Offered Shares within the time periods specified in
Section 3.1, the Selling Investor shall have a period of ninety (90) days from the expiration of
such rights in which to sell the Offered Shares to a third-party transferee(s), on terms and
conditions no less favorable to the Selling Investor than the terms proposed by the Company
pursuant to Section 3.1 hereof (if applicable). The third-party transferee(s) shall acquire the
Offered Shares free and clear of subsequent rights of first offer under this Agreement. In the
event the Selling Investor does not sell the Offered Shares within the ninety (90) day period from
the expiration of these rights, the Company’s first offer rights shall continue to be applicable to
any subsequent disposition of the Offered Shares by the Selling Investor until such rights lapse in
accordance with the terms of this Agreement. Furthermore, the exercise or non-exercise of the
rights of the Company under Section 3.1 to offer to purchase Registrable Securities from the
Selling Investor shall not adversely affect its right to make subsequent purchases from the Selling
Investor of Registrable Securities.

          3.3 Limitations to Company Right of First Offer. Notwithstanding the provisions of Section
3.1 of this Agreement, the first offer right of the Company shall not apply to (a) in the case of a
company, corporation or a partnership, to the Transfer of Equity Securities to any members,
shareholders, partners or corporate affiliates thereof (each, an “Indirect Shareholder” of the
Company) or to any entity controlled by, controlling or under common control with the transferor;
(b) to the Transfer of Equity Securities to any spouse or member of an Investor’s Immediate Family,
or to a custodian, trustee (including a trustee of a voting trust), executor, or other fiduciary
for the account of the Investor’s or Indirect Shareholder’s spouse or members of the Investor’s
immediate family, or to a trust for the Indirect Shareholder’s own self, or a charitable remainder
trust; (c) Transfers of Equity Securities by one or more individual Investors pursuant to which
after such Transfer, (i) if Common Stock issued or issuable upon conversion of the Notes is
proposed to be transferred by GE, GE will continue to collectively own at least one million
(1,000,000) shares (including shares held by transferees pursuant to clauses (a) and (b) above) of
such Common Stock (subject
to adjustment for stock splits, stock dividends, recapitalizations and similar changes
affecting the capital stock of the Company)

22

 

subsequent to such Transfer, (ii) if Series C Preferred
Stock (or Common Stock issued upon the conversion thereof) and/or Common Stock issued or issuable
upon conversion of the Notes is proposed to be transferred by Clean Technology Fund II, LP (“CTF”),
CTF will continue to collectively own at least three hundred twelve thousand five hundred (312,500)
shares (including shares held by transferees pursuant to clauses (a) and (b) above) of such Series
C Preferred Stock (or Common Stock issued upon the conversion thereof) and/or Common Stock (subject
to adjustment for stock splits, stock dividends, recapitalizations and similar changes affecting
the capital stock of the Company) subsequent to such Transfer; (iii) if Series C Preferred Stock
(or Common Stock issued upon the conversion thereof) and/or Common Stock issued or issuable upon
conversion of the Notes is proposed to be transferred by CapVest Venture Fund, LP (“CapVest”) or
Technology Transformation Venture Fund, LP (“TTVF”), CapVest and TTVF will continue to collectively
own at least twelve thousand five hundred (12,500) shares (including shares held by transferees
pursuant to clauses (a) and (b) above) of such Series C Preferred Stock (or Common Stock issued
upon the conversion thereof) and/or Common Stock (subject to adjustment for stock splits, stock
dividends, recapitalizations and similar changes affecting the capital stock of the Company)
subsequent to such Transfer; or (d) any sale of Registrable Securities to the public pursuant to a
registration statement filed with, and declared effective by, the SEC under the Act; provided,
however, that in the event of any transfer made pursuant to one of the exemptions provided by
clauses (a) or (b), the Investor shall inform the Company in writing of such Transfer prior to
effecting it and (ii) each such transferee or assignee, prior to the completion of the Transfer,
shall have executed documents assuming the obligations of the Investor under this Agreement with
respect to the transferred Registrable Securities. Except with respect to the Registrable
Securities transferred under clauses (c) and (d) above (which Registrable Securities shall no
longer be subject to the first offer rights of the Company), such transferred Registrable
Securities shall remain “Registrable Securities” hereunder, and such pledgee, transferee or donee
shall be treated as the “Investor” for purposes of this Agreement. For purposes of this Section
3.3, “Investor’s immediate family” shall include any spouse, father, mother, sibling or lineal
descendant of Holder, Holder’s spouse or an Indirect Shareholder.

          4. Miscellaneous.

          4.1 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties (including transferees of any shares of Registrable Securities). Nothing in
this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies, obligations or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.

          4.2 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of Wisconsin, as applied to contracts made and performed within the State of Wisconsin, without
regard to principles of conflicts of law.

23

 

          4.3 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.

          4.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

          4.5 Notices. All notices and other communications given or made pursuant hereto shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the party to be
notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business
hours of the recipient; if not, then on the next business day, (iii) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. The occurrence of the events set forth in subsections (i)
through (iv) above shall constitute “Delivery” of notice. All communications shall be sent to the
respective parties at the addresses set forth on the signature pages attached hereto (or at such
other addresses as shall be specified by notice given in accordance with this Section 4.5).

          4.6 Expenses. If any action at law or in equity is necessary to enforce or interpret the
terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which such party may be
entitled.

          4.7 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 holders of a
majority of the Registrable Securities and the holders of a majority in interest of the Notes (or
the shares of Common Stock into which the Notes may be converted). Notwithstanding the foregoing,
(i) in the event that such amendment or waiver adversely affects the obligations or rights of a
holder of Registrable Securities under this Agreement in a manner not applicable to all holders of
Registrable Securities, such amendment or waiver shall also require the written consent of such
adversely affected holder or, if multiple holders are so adversely affected, all such holders, and
(ii) no waiver of the rights provided in Section 2.4 of this Agreement as to any Investor may be
given without the consent of such Investor. Any amendment or waiver effected
in accordance with this paragraph shall be binding upon each holder of any Registrable
Securities, each future holder of all such Registrable Securities, and the Company.

          4.8 Severability. If one or more provisions of this Agreement are held to be unenforceable
under applicable law, such provision(s) shall be excluded from this Agreement and the balance of
the Agreement shall be interpreted as if such provision(s) were so excluded and shall be
enforceable in accordance with its terms.

24

 

          4.9 Aggregation of Stock. All shares of Registrable Securities held or acquired by affiliated
entities (including affiliated venture capital funds) or persons shall be aggregated together for
the purpose of determining the availability of any rights under this Agreement.

          4.10 Waiver of Jury Trial. TO THE EXTENT EACH MAY LEGALLY DO SO, EACH PARTY HERETO HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR
PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS AGREEMENT, OR IN ANY WAY CONNECTED WITH, OR
RELATED TO, OR INCIDENTAL TO, THE DEALING OF THE PARTIES HERETO WITH RESPECT TO THIS AGREEMENT, OR
THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE. TO THE EXTENT EACH MAY LEGALLY
DO SO, EACH PARTY HERETO HEREBY AGREES THAT ANY SUCH CLAIM, DEMAND, ACTION, OR PROCEEDING SHALL BE
DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT EITHER PARTY HERETO MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF ANY
OTHER PARTY HERETO TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

          4.11 Entire Agreement. This Agreement contains the entire understanding of the parties hereto
with respect to the subject matter hereof and supersedes any other prior agreements between the
parties hereto with respect to the subject matter hereof, including the Original Agreement, which
shall have no further force or effect. No party shall be liable or bound to any other in any
manner by any representations, warranties, covenant and agreements except as specifically set forth
herein.

{Remainder of Page Intentionally Left Blank – Signature Pages Immediately Follow}

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          IN WITNESS WHEREOF, the parties have executed this Amended and Restated Investors’
Rights Agreement as of the date first above written.

	 	 	 	 	 
	 	 	COMPANY
	 
	 	 	 	 
	 	 	ORION ENERGY SYSTEMS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Neal Verfuerth
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Address:

Signature Page to Orion Energy Systems, Inc.

Amended and Restated Investors’ Rights Agreement

 

 

	 	 	 	 	 
	 	 	INVESTORS:
	 
	 	 	 	 
	 	 	CLEAN TECHNOLOGY FUND II, LP
	 

	 	By:
	 	Expansion Capital Partners II, LP,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Expansion Capital Partners II — General
	 

	 	 	 	Partner, LLC, its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Bernardo H. Llovera
	 

	 	 	 	 
	 

	 	 	 	Name: Bernardo H. Llovera
	 

	 	 	 	Title: Managing Member
	 
	 	 	 	 
	 

	 	Address:
	 	90 Park Avenue, Suite 1700
	 

	 	 	 	New York, NY 10016
	 
	 	 	 	 
	 	 	GE CAPITAL EQUITY INVESTMENTS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael Donnelly
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	Address
	 	:
	 
	 	 	 	 
	 	 	CAPVEST VENTURE FUND, LP
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	 	 	Address:

Signature Page to Orion Energy Systems, Inc.

Amended and Restated Investors’ Rights Agreement

 

 

	 	 	 	 	 
	 	 	TECHNOLOGY TRANSFORMATION VENTURE FUND, LP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	 	 	Address:

Signature Page to Orion Energy Systems, Inc.

Amended and Restated Investors’ Rights Agreement

 

 

Exhibit A

Senior Management Employees and Director Employees

Neal Verfuerth

Mike Potts

Dan Waibel

Pat Verfuerth

Rick Olsen

John Scribante

Danny Czaja

Eric von Estorff

Erik Birkerts

 

 

Schedule 2.5

Neal Verfuerth

Mike Potts

Dan Waibel

Pat Verfuerth

Rick Olsen

John Scribante

Danny Czaja

Eric von Estorff

Erik Birkerts

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]