Document:

exv10w21

Exhibit 10.21

AMENDMENT NO. 11

AND LIMITED WAIVER TO LOAN AND SECURITY AGREEMENT

     This
Amendment No. 11 and Limited Waiver to Loan and Security Agreement
 (this “Amendment”) is entered into this 28 day of March, 2011, by and between Rae
Systems
Inc.,
 a Delaware corporation (“Borrower”) and Silicon
Valley Bank (“Bank”). Capitalized terms used herein without definition shall have the
same meanings given them in the Loan Agreement (as defined below).

Recitals

     A. Borrower and Bank have entered into that certain Loan and Security Agreement dated
as of March 14, 2007 (as has been and may be further amended, restated, or otherwise modified, the
“Loan Agreement”), pursuant to which the Bank has extended and will make available to Borrower
certain advances of money.

     B. Borrower (a) is in default under Section 6.8(b) of the Loan Agreement for failing to
maintain a trailing 2-quarter EBITDA of at least $(1,000,000) for the combined fiscal quarters
ending September 30, 2010 and December 33, 2010 (the “Existing Default”), and (b) desires that Bank
(i) provide the limited waiver of the Existing Default, and (ii) amend the Loan Agreement upon the
terms and conditions more fully set forth herein.

     C. Subject to the representations and warranties of Borrower herein and upon the terms
and conditions set forth in this Amendment, Bank is willing to provide the conditional limited
waiver contained herein and so amend the Loan Agreement.

AGREEMENT

	 	 	NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally
bound, the parties hereto agree as follows:

     1. Event of Default and Limited Waiver. Borrower acknowledges that there exists an
Event of Default under Section 6.8(b) of the Loan Agreement due to the Existing Default. Bank
hereby agrees, subject to the terms of Section 5 hereof, to
waive the Existing Default

     2. Amendments to Loan Agreement.

          2.1
Section 2.3 (Interest Rate). Subsection (a) of Section 2.3 of the Loan Agreement
is amended and restated in its entirety, as follows:

          “(a) Interest Rate. Subject to Section 2.3(b), the principal amount outstanding under the (i)
Revolving Line (excluding the Non-Formula Line) shall accrue interest at a floating per annum rate
equal to the Prime Rate plus one percentage point (1.00%), and (ii) Non-Formula Line shall accrue
interest at a floating per annum rate equal to the Prime Rate plus four percentage points (4.00%),
in each case which interest shall be payable monthly in accordance
with Section 2.3(f) below.”

          2.2 2.4 (Fees). Subsection (a) of Section 2.4 of the Loan Agreement is amended and restated in
its entirety, as follows:

 

 

          “(a) Commitment Fee. A fully earned, non-refundable commitment fee of $7,500
on the (i) Eleventh Amendment Effective Date, and (ii) Revolving Line Maturity Date.”

          2.3 Section 6.8 (Financial Covenants). Subsection (b) of Section 6.8 (Financial Covenants)
of the Loan Agreement is amended and restated in its entirety, as follows:

          “(b) Minimum EBITDA. Maintain, measured as of the fiscal quarter ending March 31, 2011,
EBITDA of at least $(6,800,000).”

          2.4 Section 13.1 (Definitions). The following terms and their definitions are amended to
read in their entirety, as follows:

          ““Borrowing Base” is (a) $2,000,000 (the “Non-Formula Line”), plus (b) 80% of Eligible
Accounts, as determined by Bank from Borrower’s most recent Borrowing Base Certificate; provided,
however, that Bank may decrease the foregoing percentages in its good faith business judgment based
on events (including without limitation, the initial field audit examination and the on-going
periodic examinations), conditions, contingencies, or risks which, as determined by Bank, may
adversely affect Collateral.”

          ““Revolving Line Maturity Date” is the earlier to occur of (i) June 15, 2011 and (ii) the
consummation of an acquisition of Borrower.”

          8.11 Section 13.1 (Definitions). The following terms and their definitions are added to
Section 13 of the Loan Agreement in their appropriate alphabetical order:

          ““Non-Formula Line” is defined in Subsection (a) of the definition of “Borrowing Base”.”

          ““Eleventh Amendment Effective Date” is March [ ], 2011.”

          2.5 Exhibit D (Compliance Certificate). Exhibit D of the Loan Agreement is hereby
amended by deleting it in its entirety and replacing it with Exhibit A attached hereto.

     3. Borrower’s Representations and Warranties. Borrower represents and
warrants that:

               (a) immediately upon giving effect to this Amendment, (i) the
representations and warranties contained in the Loan Documents are true, accurate and complete in
all material respects as of the date hereof (except to the extent such representations and
warranties relate to an earlier date, in which case they are true and correct as of such date), and
(ii) no Event of Default has occurred and is continuing;

               (b) Borrower has the corporate power and authority to execute and deliver this Amendment and
to perform its obligations under the Loan Agreement, as amended by this Amendment;

               (c) the certificate of incorporation, bylaws and other organizational documents of
Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not
been amended, supplemented or restated and are and continue to be in full force and effect;

2

 

               (d) the execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, have been duly
authorized by all necessary corporate action on the part of Borrower;

               (e) this Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights; and

               (f) as of the date hereof, Borrower has no defenses against the obligations to pay any amounts
under the Obligations. Borrower acknowledges that Bank has acted in good faith and has conducted in
a commercially reasonable manner its relationships with such Borrower in connection with this
Amendment and in connection with the Loan Documents.

          Borrower understands and acknowledges that Bank is entering into this Amendment in reliance
upon, and in partial consideration for, the above representations and warranties, and agrees that
such reliance is reasonable and appropriate.

     4. Limitation. The limited waiver and amendments set forth in this Amendment shall be
limited precisely as written and shall not be deemed (a) to be a forbearance, waiver or
modification of any other term or condition of the Loan Agreement or of any other instrument or
agreement referred to therein or to prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with the Loan Agreement or any instrument or agreement
referred to therein; (b) to be a consent to any future amendment or modification, forbearance or
waiver to any instrument or agreement the execution and delivery of which is consented to hereby,
or to any waiver of any of the provisions thereof; or (c) to limit or impair Bank’s right to demand
strict performance of all terms and covenants as of any date. Except as expressly amended hereby,
the Loan Agreement shall continue in full force and effect.

     5. Effectiveness. This Amendment shall become effective upon the satisfaction of
all the following conditions precedent:

          5.1 Amendment. Borrower and Bank shall have duly executed and delivered this Amendment to
Bank;

          5.2
Payment  of Loan Fee. Borrower shall have paid Bank a commitment fee of $7,500; and

          5.3 Payment of Bank Expenses. Borrower shall have paid all Bank Expenses (including all
reasonable attorneys’ fees and reasonable expenses) incurred through the date of this Amendment.

     6. Counterparts. This Amendment may be signed in any number of counterparts, and by
different parties hereto in separate counterparts, with the same effect as if the signatures to
each such counterpart were upon a single instrument. All counterparts shall be deemed an
original of this Amendment.

     7. Integration. This Amendment and any documents executed in connection herewith or
pursuant hereto contain the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior agreements, understandings, offers and negotiations, oral or
written, with respect

3

 

	thereto and no extrinsic evidence whatsoever may be introduced in any judicial or
arbitration proceeding, if any, involving this Amendment; except that any financing statements or
other agreements or instruments filed by Bank with respect to Borrower shall remain in full force
and effect.

     8. Governing Law; Venue. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and Bank each submit
to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the
date first written above.

	 	 	 	 	 
	Borrower: 	Rae Systems Inc.
a Delaware corporation 

 	 

	 	 	 	 	 
	 	By: 	/s/  Randall K. Gausman
 	 

	 	 	 	 	 
	 	Printed Name: 	Randall K. Gausman 	 
	 	Title:  CFO 	 

	 	 	 	 	 
	Bank: 	Silicon Valley Bank

 	 

	 	 	 	 	 
	 	By: 	/s/ Ray Aguilar
 	 

	 	 	 	 	 
	 	Printed Name: 	Ray Aguilar 	 
	 	Title:  
    RM 	 

4exv10w22

Exhibit 10.22

Case 1:10-cv-02093-ESH   Document 3   Filed 12/15/10   Page 1 of 12

					
	 
	 	UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLUMBIA
	 	

	 	 	 	 	 

	UNITED STATES SECURITIES AND
EXCHANGE COMMISSION,
	 	
	 
	 	 	 
	 
	 	Plaintiff,	 
	 
	 	 	 
	v.
	 
	 
	 	 	 
	RAE SYSTEMS INC.
	 
	 
	 	 	 
	 
	 	Defendant.	 

FINAL JUDGMENT AS TO DEFENDANT RAE SYSTEMS INC.

     The Securities and Exchange Commission having filed a Complaint and Defendant RAE Systems
Inc. having entered a general appearance; consented to the Court’s jurisdiction over Defendant
and the subject matter of this action; consented to entry of this Final Judgment without
admitting or denying the allegations of the Complaint (except as to jurisdiction); waived
findings of fact and conclusions of law; and waived any right to appeal from this Final
Judgment:

I.

     IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant’s agents,
servants, employees, attorneys, and all persons in active concert or participation with them
who receive actual notice of this Final Judgment by personal service or otherwise are
permanently restrained and enjoined from violating, directly or indirectly, Section 30A of the
Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78dd-l] by use of the
mails or any means or instrumentality of interstate commerce corruptly in furtherance of

 

 

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	 	 	any offer, payment, promise to pay, or authorization of the payment of any money, or offer, gift,
promise to give, or authorization of the giving of anything of value to—

	 	(1)	 	any foreign official for purposes of—
	 
	 	 	 	(A)(i) influencing any act or decision of such foreign official in his official
capacity, (ii) inducing such foreign official to do or omit to do any act in
violation of the lawful duty of such official, or (iii) securing any improper
advantage; or (B) inducing such foreign official to use his influence with a foreign
government or instrumentality thereof to affect or influence any act or decision of
such government or instrumentality, in order to assist Defendant in obtaining or
retaining business for or with, or directing business to, any person;
	 
	 	(2)	 	any foreign political party or official thereof or any candidate for foreign
political office for purposes of—
	 
	 	 	 	(A)(i) influencing any act or decision of such party, official, or candidate in its
or his official capacity, (ii) inducing such party, official, or candidate to do or
omit to do an act in violation of the lawful duty of such party, official, or
candidate, or (iii) securing any improper advantage; or
	 
	 	 	 	(B) inducing such party, official, or candidate to use its or his influence with a
foreign government or instrumentality thereof to affect or influence any act or
decision of such government or instrumentality, in order to assist Defendant in
obtaining or retaining business for or with, or directing business to, any person;
or
	 
	 	(3)	 	any person, while knowing that all or a portion of such money or thing of value
will be offered, given, or promised, directly or indirectly, to any foreign
official,

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	 	 	 	to any foreign political party or official thereof, or to any candidate for foreign
political office for purposes of—
	 
	 	 	 	(A)(i) influencing any act or decision of such foreign official, political party,
party official, or candidate in his or its official capacity, (ii) inducing such
foreign official, political party, party official, or candidate to do or omit to do
any act in violation of the lawful duty of such foreign official, political party,
party official, or candidate, or (iii) securing any improper advantage;
	 
	 	 	 	(B) inducing such foreign official, political party, party official, or candidate to
use his or its influence with a foreign government or instrumentality thereof to
affect or influence any act or decision of such government or instrumentality, in
order to assist Defendant in obtaining or retaining business for or with, or
directing business to, any person.

II.

     IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant’s officers,
agents, servants, employees, attorneys, and all persons in active concert or participation with
them who receive actual notice of this Final Judgment by personal service or otherwise are
permanently restrained and enjoined from violating, directly or
indirectly, Section 13(b)(2)(A) of
the Exchange Act, 15 U.S.C. § 78m(b)(2)(A), by failing to make and keep books, records, and
accounts, which, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Defendant.

III.

     IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant’s officers,
agents, servants, employees, attorneys, and all persons in active

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Case 1:10-cv-02093-ESH   Document 3   Filed 12/15/10   Page 4 of 12

concert or participation with them who receive actual notice of this Final Judgment by personal
service or otherwise are permanently restrained and enjoined from violating, directly or
indirectly, Section 13(b)(2)(B) of the Exchange Act, 15 U.S.C. § 78m(b)(2)(B), by failing to
devise and maintain a system of internal accounting controls sufficient to provide reasonable
assurances that: (i) transactions are executed in accordance with management’s general or specific
authorization; (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles or any other criteria
applicable to such statements, and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.

IV.

     IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement
of $1,147,800, representing profits gained as a result of the conduct alleged in the Complaint,
together with prejudgment interest thereon in the amount of $109,212, for a total of $1,257,012.
Defendant shall satisfy this obligation by paying $1,257,012 within ten (10) business days after
entry of this Final Judgment by wire transfer, certified check, bank cashier’s check, United States
postal money order or other mutually agreed means, payable to the Securities and Exchange
Commission. The payment shall be made to the attention of the Office of Financial Management,
Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop 0-3,
Alexandria, Virginia 22312, and shall be accompanied by a cover letter identifying RAE as a
defendant in this action; setting forth the title and civil action

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number of this action and the name of this Court; and specifying that payment is made pursuant to
this Final Judgment. Defendant shall simultaneously transmit photocopies of or other suitable proof
of the payment of disgorgement and letter C. Joshua Felker, Assistant Director, Division of
Enforcement, 100 F Street, N.E., Washington, D.C. 20549-5030B. By making this payment, Defendant
relinquishes all legal and equitable right, title, and interest in such funds, and no part of the
funds shall be returned to Defendant. Defendant shall pay post-judgment interest on any delinquent
amounts pursuant to 28 U.S.C. § 1961. The Commission shall remit the funds paid pursuant to
this paragraph to the United States Treasury.

V.

     IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the
same force and effect as if fully set forth herein, and that Defendant shall comply with all of the
undertakings and agreements set forth therein, including, but not limited to, the following
undertakings:

	 	1.	 	RAE will continue to conduct appropriate reviews of its existing internal
controls, policies, and procedures.
	 
	 	2.	 	Where appropriate, RAE undertakes to adopt new or to modify existing internal
controls, policies, and procedures in order to ensure that it maintains: (a) a system
of internal accounting controls designed to ensure that RAE makes and keeps fair and
accurate books, records, and accounts; and (b) a rigorous anti-corruption compliance
code, standards, and procedures designed to detect and deter violations of the FCPA
and other applicable anti-corruption laws. At a minimum, this should include, but not
be limited to, the following elements:

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	 	a.	 	RAE will develop and promulgate a clearly articulated and visible
corporate policy against violations of the FCPA, including its anti-bribery,
books and records, and internal controls provisions, and other applicable
foreign law counterparts (collectively, the “anti-corruption laws,”), which
policy shall be memorialized in a written compliance code.
	 
	 	b.	 	RAE will ensure that its senior management provide strong, explicit, and
visible support and commitment to its corporate policy against violations
of the anti-corruption laws and its compliance code.
	 
	 	c.	 	RAE will develop and promulgate compliance standards and procedures
designed to reduce the prospect of violations of the anti-corruption laws
and RAE’s compliance code, and RAE will take appropriate measures to
encourage and support the observance of ethics and compliance standards
and procedures against foreign bribery by personnel at all levels of the
company. These anti-corruption standards and procedures shall apply to
all directors, officers, and employees and, where necessary and
appropriate, outside parties acting on behalf of RAE in a foreign
jurisdiction, including but not limited to, agents and intermediaries,
consultants, representatives, distributors, teaming partners, contractors and
suppliers, consortia, and joint venture partners (collectively, “agents and
business partners”), to the extent that agents and business partners may be
employed under RAE’s corporate policy. RAE shall notify all employees
that compliance with the standards and procedures is the duty of
individuals at all levels of the company. Such standards and procedures
shall include policies governing:

	 	i.	 	gifts;

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Case 1:10-cv-02093-ESH   Document 3   Filed 12/15/10   Page 7 of 12

	 	ii.	 	hospitality, entertainment, and expenses;
	 
	 	iii.	 	customer travel;
	 
	 	iv.	 	political contributions;
	 
	 	v.	 	charitable donations and sponsorships;
	 
	 	vi.	 	facilitation payments; and
	 
	 	vii.	 	solicitation and extortion.

	 	3.	 	RAE will develop these compliance standards and procedures, including internal
controls, ethics, and compliance programs on the basis of a risk assessment
addressing the individual circumstances of the company, in particular the foreign
bribery risks facing the company, including, but not limited to, its geographical
organization, interactions with various types and levels of government officials,
industrial sectors of operation, involvement in joint venture arrangements, importance
of licenses and permits in the company’s operations, degree of governmental
oversight and inspection, and volume and importance of goods and personnel clearing
through customs and immigration.
	 
	 	4.	 	RAE shall review its anti-corruption compliance standards and procedures, including
internal controls, ethics, and compliance programs, no less than annually, and update
them as appropriate, taking into account relevant developments in the field and
evolving international and industry standards, and update and adapt them as necessary
to ensure their continued effectiveness.
	 
	 	5.	 	RAE will assign responsibility to one or more senior corporate executives of RAE for
the implementation and oversight of RAE’s anti-corruption policies, standards, and
procedures. Such corporate official(s) shall have direct reporting obligations to
independent monitoring bodies, including internal audit, RAE’s Board of Directors,
or any appropriate committee of the Board of Directors, and shall have an adequate

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	 	 	 	level of autonomy from management as well as sufficient resources and authority to maintain
such autonomy.
	 
	 	6.	 	RAE will ensure that it has a system of financial and accounting procedures,
including a system of internal controls, reasonably designed to ensure the
maintenance of fair and accurate books, records, and accounts to ensure that they
cannot be used for the purpose of foreign bribery or concealing such bribery.
	 
	 	7.	 	RAE will implement mechanisms designed to ensure that its anti-corruption policies,
standards, and procedures are effectively communicated to all directors, officers,
employees, and, where appropriate, agents and business partners. These mechanisms
shall include: (a) periodic training for all directors, officers, and employees, and,
where necessary and appropriate, agents and business partners; and (b) annual
certifications by all such directors, officers, and employees, and, where necessary and
appropriate, agents, and business partners, certifying compliance with the training
requirements.
	 
	 	8.	 	RAE will establish an effective system for:

	 	a.	 	Providing guidance and advice to directors, officers, employees, and,
where appropriate, agents and business partners, on complying with
RAE’s anti-corruption compliance policies, standards, and procedures,
including when they need advice on an urgent basis or in any foreign
jurisdiction in which the company operates;
	 
	 	b.	 	Internal and, where possible, confidential reporting by, and protection of,
directors, officers, employees, and, where appropriate, agents and business
partners, not willing to violate professional standards or ethics under
instructions or pressure from hierarchical superiors, as well as for
directors, officers, employee, and, where appropriate, agents and business

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	 	 	 	partners, willing to report breaches of the law or professional standards or
ethics concerning anti-corruption occurring within the company, suspected criminal
conduct, and/or violations of the compliance policies, standards, and procedures
regarding the anti-corruption laws for directors, officers, employees, and, where
necessary and appropriate, agents and business partners; and
	 
	 	c.	 	Responding to such requests and undertaking appropriate
action in response to such reports.

	 	9.	 	RAE will institute appropriate disciplinary procedures to address, among other things,
violations of the anti-corruption laws and RAE’s anti-corruption compliance code,
policies, and procedures by RAE’s directors, officers, and employees. RAE shall
implement procedures to ensure that where misconduct is discovered, reasonable
steps are taken to remedy the harm resulting from such misconduct, and to ensure that
appropriate steps are taken to prevent further similar misconduct, including assessing
the internal controls, ethics, and compliance program and making modifications
necessary to ensure the program is effective.
	 
	 	10.	 	To the extent that the use of agents and business partners is permitted at all by RAE,
it will institute appropriate due diligence and compliance requirements pertaining to
the retention and oversight of all agents and business partners, including:

	 	a.	 	Properly documented risk-based due diligence pertaining to the hiring and
appropriate and regular oversight of agents and business partners;
	 
	 	b.	 	Informing agents and business partners of RAE’s commitment to abiding
by laws on the prohibitions against foreign bribery, and of RAE’s ethics
and compliance standards and procedures and other measures for
preventing and detecting such bribery; and

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	 	c.	 	Seeking a reciprocal commitment from agents and business partners.

	 	11.	 	Where appropriate, RAE will include standard provisions in agreements, contracts,
and renewals thereof with all agents and business partners that are reasonably
calculated to prevent violations of the anti-corruption laws, which may, depending
upon the circumstances, include: (a) anti-corruption representations and undertakings
relating to compliance with the anti-corruption laws; (b) rights to conduct audits of
the books and records of the agent or business partner to ensure compliance with the
foregoing; and (c) rights to terminate an agent or business partner as a result of any
breach of anti-corruption laws, and regulations or representations and undertakings
related to such matters.
	 
	 	12.	 	RAE will conduct periodic reviews and testing of its anti-corruption compliance code,
standards, and procedures designed to evaluate and improve their effectiveness in
preventing and detecting violations of anti-corruption laws and RAE’s anti-corruption
code, standards and procedures, taking into account relevant developments in the
field and evolving international and industry standards.
	 
	 	13.	 	RAE will report periodically, at no less than 12-month intervals, in accordance with
the schedule described below, for a three-year period regarding remediation and
implementation of the compliance program and its internal controls, policies, and
procedures.
	 
	 	14.	 	If RAE discovers credible evidence not already reported to the SEC that questionable
or corrupt payments or questionable or corrupt transfers of property or interests may
have been offered, promised, paid, or authorized by any RAE entity or person, or any
entity or person working directly for RAE, or that related false books and records
have been maintained, RAE shall promptly report such conduct to the SEC.

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	 	15.	 	For a three-year period, RAE shall: (1) conduct an initial review and prepare an
initial report, and (2) conduct and prepare two follow-up reviews and reports, as
described below:

	 	a.	 	By no later than May 1, 2011, RAE shall issue a written report covering
calendar year 2010 and setting forth a complete description of its
remediation efforts to date, its proposals reasonably designed to improve
the policies and procedures of RAE for ensuring compliance with the
FCPA and other applicable anticorruption laws, and the parameters of the
subsequent reviews. The report shall be transmitted to C. Joshua Felker,
Assistant Director, U.S. Securities and Exchange Commission, 100 F
Street, N.E. Washington, D.C., 20549-5030B. RAE may extend the time
period for issuance of the report with prior written approval of the SEC.
	 
	 	b.	 	RAE shall undertake two follow-up reviews, incorporating any comments
provided by the SEC on its initial review and report, to further monitor
and assess whether the policies and procedures of RAE are reasonably
designed to detect and prevent violations of the FCPA and other
applicable anticorruption laws.
	 
	 	c.	 	The first follow-up review and report shall be completed by no more than
one-year after the initial review. The second follow-up review and report
shall be completed by no more than one-year after the completion of the
first follow-up review.
	 
	 	d.	 	RAE may extend the time period for submission of the follow-up reports
with prior written approval of this Office; and

	 	16.	 	RAE must certify, in writing, compliance with the undertaking(s) set forth above.
The certification shall identify the undertaking(s), provide written evidence of

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	 	 	 	compliance in the form of a narrative, and be supported by exhibits sufficient to
demonstrate compliance. The Commission staff may make reasonable requests for further
evidence of compliance, and Defendant agrees to provide such evidence. Defendant shall
submit the certification and supporting material to C. Joshua Felker, with a copy to the
Office of Chief Counsel of the Enforcement Division, no later than sixty (60) days from
the date of the completion of the undertakings.

VI.

     IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the
same force and effect as if fully set forth herein, and that Defendant shall comply with all of the
undertakings and agreements set forth therein.

VII.

     IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this
matter for the purposes of enforcing the terms of this Final Judgment.

12

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