Document:

Certificate of Designation of Series E Non-Convertible Preferred Stock

 Exhibit 4.1 

CERTIFICATE OF DESIGNATION 

OF 

PREFERRED STOCK 

OF 

LIGHTING SCIENCE GROUP CORPORATION 

To Be Designated 

Series E Non-Convertible Preferred Stock 
  

 
 Pursuant to
Section 151(g) of the 
 General Corporation Law of the State of Delaware 

 
  

The undersigned DOES HEREBY CERTIFY that the following resolution was duly adopted by the Committee of Independent Directors (the
“Independent Committee”) of the Board of Directors (the “Board of Directors”) of Lighting Science Group Corporation, a Delaware corporation (the “Corporation”), pursuant to the authority conferred
on the Independent Committee pursuant to a resolution duly adopted by the Board of Directors, at a meeting duly convened and held, at which a quorum was present and acting throughout: 

RESOLVED, that pursuant to the authority conferred on the Independent Committee by the Board of Directors and by the Corporation’s
Certificate of Incorporation, the issuance of a series of preferred stock, par value $0.001 per share, of the Corporation which shall consist of 1,000,000 shares of preferred stock be, and the same hereby is, authorized, and each of the Chief
Executive Officer, the Chief Financial Officer, the Chief Operating Officer and the Secretary of the Corporation be, and each hereby is, authorized and directed to execute and file with the Secretary of State of the State of Delaware a Certificate
of Designation of Preferred Stock of the Corporation setting forth a copy of this resolution fixing the designations, powers, preferences and rights of the shares of such series, and the qualifications, limitations or restrictions thereof (in
addition to the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof, set forth in the Certificate of Incorporation which may be applicable to the Corporation’s preferred stock), as follows:

 1. Number of Shares; Designation. A total of 1,000,000 shares of preferred stock, par value $0.001 per share,
of the Corporation are hereby designated as Series E Non-Convertible Preferred Stock (the “Series”). Shares of the Series (the “Preferred Shares”) are expected to be issued to Pegasus Partners IV, L.P.
(“Pegasus IV”) on or about June 23, 2010 pursuant to a Subscription Agreement. The Corporation will initially issue the Preferred Shares in the form of a component of a whole Unit of the Corporation’s securities, and each
Unit shall consist of one Preferred Share and a warrant (each, a “Warrant”) to purchase fifty (50) shares of the Corporation’s common stock, par value $0.001 per share (the “Common Stock”) at an initial
exercise price of $7.00 per share, subject to adjustment and having the terms and conditions as set forth in that certain warrant agreement entered into as of the date hereof in connection with the issuance of the Units (the “Warrant
Agreement”). 
 2. Rank. The Series shall, with respect to rights upon liquidation, dissolution or
winding-up of the affairs of the Corporation, rank: 
 (a) Senior and prior to the Common Stock and any additional
class or series of stock which may in the future be issued by the Corporation and is designated in the amendment to the Certificate of Incorporation or the certificate of designation establishing such additional class or series of stock as ranking
junior to the Preferred Shares or which do not state they are Parity Liquidation Shares (as defined below) or Senior Liquidation Shares (as defined below). Any shares of the Corporation’s Capital Stock which are junior to the Preferred Shares
with respect to rights upon a Liquidation Event (as defined below) are hereinafter referred to as “Junior Liquidation Shares.” 

 (b) Pari passu with the Series D Preferred Stock of the Corporation and any
additional class or series of stock which may in the future be issued by the Corporation and is designated in the amendment to the Certificate of Incorporation or the certificate of designation establishing such additional class or series of stock
as ranking equal to the Preferred Shares. Any shares of the Corporation’s Capital Stock which are equal to the Preferred Shares with respect to rights upon liquidation, dissolution or winding-up of the affairs of the Corporation are hereinafter
referred to as “Parity Liquidation Shares.” 
 (c) Junior to the Series B Preferred Stock of the Corporation
and Series C Preferred Stock of the Corporation. 
 (d) Junior to any additional class or series of stock which may in the
future be issued by the Corporation and is designated in the amendment to the Certificate of Incorporation or the certificate of designation establishing such additional class or series of stock as ranking senior to the Preferred Shares. Any shares
of the Corporation’s Capital Stock that rank senior to the Preferred Shares with respect to rights upon a Liquidation Event are hereinafter referred to as “Senior Liquidation Shares.” 

3. Dividends. 

(a) Dividends shall accrue on each Preferred Share at an annual rate of 13.454% (the “Dividend Rate”) multiplied by the
Liquidation Value (as defined below) for each Preferred Share and no more (the “Annual Dividend”). Dividends on each Preferred Share shall accrue annually on the anniversary of the original issuance date of such Preferred Share
(each, a “Dividend Payment Date”), commencing on the first Dividend Payment Date immediately following the applicable issue date of such Preferred Share. The Annual Dividend on each Preferred Share shall accrue to the Liquidation
Value, and be cumulative, whether or not earned or declared, and whether or not sufficient funds are legally available in respect thereof, from the applicable issue date of such Preferred Share and shall compound annually on the next succeeding
Dividend Payment Date. 
 (b) Subject to Section 3(c) and the terms of the Warrant Agreement, of the Annual Dividend
payable pursuant to Section 3(a), the portion of the Annual Dividend equal to 5.454% multiplied by the Liquidation Value (the “Exercise Price Accrual Rate”) shall not be payable in cash, stock or property, but shall
accrue solely for purposes of funding the payment of the exercise price of all or a portion of the Warrant(s) held by such Holder (the “Exercise Price Accrual”). The remainder of the Annual Dividend in excess of the Exercise Price
Accrual (8%) shall be payable solely by accrual to Liquidation Value (the “LV Accrual”, and the rate of such remainder is referred to herein as the “LV Accrual Rate”). 

(c) The Exercise Price Accrual shall not be payable in cash, stock or property but shall be credited to an account for the benefit of the
Holder and used solely to fund payment of the exercise price of all or a portion of the Warrants in accordance with the terms of the Warrant Agreement. Except for in the case of the surrender by a Holder of all or a portion of such Holder’s
Preferred Shares pursuant to Section 5, the Exercise Price Accrual credited to the account of a Holder may not be applied by such Holder to fund payment of all or a portion of the exercise price of the Warrant(s) held by such Holder
until: (i) the eighth anniversary of the date of original issuance (the “Redemption Date”) or (ii) the Deemed Redemption Date (as defined below). Any Exercise Price Accrual amounts applied by a Holder to fund payment of
the exercise price of the Warrant(s) pursuant to this Section 3(c) and in accordance with the terms of the Warrant Agreement shall be surrendered by the Holder. Upon the Redemption Date or the Deemed Redemption Date, any Exercise Price
Accrual in excess of the exercise price of the Warrant(s) held by such Holder shall be surrendered by the Holder. 
  

 2 

 (d) For the avoidance of doubt, assuming no surrenders or adjustments whatsoever, the
Liquidation Value, the Annual Dividend, Exercise Price Accrual and cumulative Exercise Price Accrual with respect to one Preferred Share shall be as follows: 
  

													
	 Anniversary of the Date of Original Issuance

(Dividend Payment Date) (Year)
	  	Liquidation Value	  	Annual Dividend	  	Exercise Price
Accrual	  	Cumulative Exercise
Price Accrual
	 0
	  	$	127.5000	  	 	—  	  	 	—  	  	 	—  
	 1
	  	$	144.6539	  	$	17.1539	  	$	6.9539	  	$	 6.9539
	 2
	  	$	164.1156	  	$	19.4617	  	$	 7.8894	  	$	14.8433
	 3
	  	$	186.1957	  	$	22.0801	  	$	 8.9509	  	$	23.7941
	 4
	  	$	211.2465	  	$	25.0508	  	$	10.1551	  	$	33.9492
	 5
	  	$	239.6676	  	$	28.4211	  	$	11.5214	  	$	45.4706
	 6
	  	$	271.9124	  	$	32.2449	  	$	13.0715	  	$	58.5421
	 7
	  	$	308.4955	  	$	36.5831	  	$	14.8301	  	$	73.3722
	 8
	  	$	350.00	  	$	41.5050	  	$	16.8253	  	$	90.1975

 4.
Liquidation. 
 (a) The liquidation value per Preferred Share shall be an amount equal to (i) $127.50 per
share (the “Purchase Price”), subject to adjustment in the event of a stock split or similar event applicable to the Series, plus (ii) the Annual Dividend on such Preferred Share from the date of original issuance through the
applicable measurement date (the sum of the foregoing clauses (i) and (ii) being hereinafter referred to as the “Liquidation Value”). The Liquidation Value per Preferred Share, in case of the voluntary or involuntary
liquidation, dissolution or winding-up of the affairs of the Corporation or a Change of Control (each, a “Liquidation Event”, and the date of such Liquidation Event being referred to herein as the “Deemed Redemption
Date”), shall be an amount equal to the Liquidation Value as of the Redemption Date, as if such Holder held the Preferred Share until the Redemption Date; provided, however, the unearned portion of the Annual Dividend that
accelerates as a result of this Section 4(a) shall not be payable in cash, stock or property but shall accrue solely for purposes of funding the payment of the exercise price of all or a portion of the Warrant(s) held by such Holder and
be deemed the Exercise Price Accrual for all purposes thereafter. 
 (b) Upon the occurrence of any Liquidation Event, the
Holders (i) shall not be entitled to receive the Liquidation Value of the Preferred Shares held by them until the liquidation value of all Senior Liquidation Shares shall have been paid in full, and (ii) shall be entitled to receive an
amount in cash equal to the Liquidation Value, less the Exercise Price Accrual (which amount shall remain credited to the account of the Holders in accordance with Section 4(c)), of such shares held by them in preference to and in
priority over any distributions upon the Junior Liquidation Shares. Upon payment in full of the Liquidation Value to which the Holders are entitled, the Holders will not be entitled to any further participation in any distribution of assets by the
Corporation and the Preferred Shares held by such Holders shall be deemed redeemed. If the assets of the Corporation are not sufficient to pay in full the Liquidation Value payable to the Holders and the liquidation value payable to the holders of
any Parity Liquidation Shares, the holders of all such shares shall share ratably in such distribution of assets in accordance with the amounts that would be payable on the distribution if the amounts to which the Holders and the holders of Parity
Liquidation Shares are entitled were paid in full. 
  

 3 

 (c) In the event of any Liquidation Event, the cumulative amount of the Exercise Price
Accrual (including the accelerated portion thereof pursuant to Section 4(a)) for each Preferred Share shall remain credited to the account of the Holder until used to fund the payment of the exercise price of all or a portion of the
Holder’s Warrant(s) or until the date that such Holder’s Warrant(s) are no longer exercisable in accordance with the terms of the Warrants. 

(d) The Corporation shall, no later than the Deemed Redemption Date, deliver written notice of such Liquidation Event to each Holder
stating (i) the Redemption Price (defined below) and (ii) the date or dates when and the place or places where the amounts distributable in such circumstances shall be payable. Any payment required by this Section 4 shall be
made not less than 30 days after the date of the Liquidation Event. 
 5. Surrender; Conversion. Except as
provided in this Section 5, Holders of the Preferred Shares shall have no right to exchange or convert such shares into any other securities. 

(a) In accordance with the terms of the Warrant Agreement and subject to this Section 5, a Holder may elect to fund payment
of all or a portion of the exercise price of such Holder’s Warrant(s) being exercised by such Holder by the surrender of all or a portion of such Holder’s Preferred Share(s) having a Liquidation Value equal to that portion of the exercise
price that such Holder elects to satisfy by the surrender of Preferred Share(s). 
 (b) Except for a payment required to
be made on the Redemption Date or any Deemed Redemption Date, no Holder shall be entitled to receive cash or other consideration in satisfaction of the excess of the aggregate Liquidation Value of the Preferred Shares surrendered over the aggregate
exercise price of the Warrant(s) exercised (the “Excess Amount”), it being understood that the Excess Amount shall never exceed the exercise price payable upon exercise of a Warrant to purchase one share of
Common Stock. In the event that a Holder exercises a Warrant or Warrants pursuant to the terms of the Warrants and this Section 5 and such exercise results in an Excess Amount, then at the Holder’s option the Excess Amount:
(i) shall be forfeited to the Corporation or (ii) may be applied to exercise a Warrant to purchase one additional share of Common Stock; provided, however, that such Holder shall pay an amount in cash equal to the difference
between the Excess Amount and the exercise price of the Warrant; provided further, that this option (ii) shall not be available if the Holder does not hold at least one Warrant immediately following the exercise resulting in the
Excess Amount. If the Holder does not make an election with respect to the Excess Amount, then the Excess Amount will be deemed to be forfeited to the Corporation. 

6. Voting Rights. Unless otherwise provided by law, the Certificate of Incorporation or Section 7, the Holders
shall not have the right to vote for the election of directors or on any other matters presented to the Corporation’s stockholders for action by their written consent or at any annual or special meeting of stockholders. On any matter on which
the Holders are entitled by law or under the Certificate of Incorporation to vote separately as a class, each such Holder shall be entitled to one vote for each share held, and such matter shall be determined by a majority of the Preferred Shares
voting on such matter. 
  

 4 

 7. Restrictions and Limitations. 

So long as any Preferred Shares remain outstanding, the Corporation shall not, without the vote or written consent by the Holders of at
least a majority of the outstanding Preferred Shares, voting together as a single class: 
  

	 	(i)	alter, modify or amend (whether by merger or otherwise) the terms of the Series in any way; 

 

	 	(ii)	create (whether by merger or otherwise) any new series or class of Senior Liquidation Shares or Parity Liquidation Shares; 

 

	 	(iii)	increase (whether by merger or otherwise) the authorized number of shares of the Series; 

 

	 	(iv)	issue (whether by merger or otherwise) any Senior Liquidation Shares or Parity Liquidation Shares; 

 

	 	(v)	issue (whether by merger or otherwise) any additional shares of the Series; or 

 

	 	(vi)	enter into any definitive agreement or commitment with respect to any of the foregoing. 

In the event that the Holders of at least a majority of the outstanding Preferred Shares agree to allow the Corporation to alter or
change the rights, preferences or privileges of the Series pursuant to applicable law, no such change shall be effective to the extent that, by its terms, such change applies to less than all of the Preferred Shares then outstanding. 

8. Mandatory Redemption. 

(a) Upon the Redemption Date, the Corporation shall, subject to having funds legally available therefor, redeem all, but not less than
all, outstanding Preferred Shares at the Liquidation Value; (the “Redemption Price”); provided, however, that the Exercise Price Accrual shall not be payable in cash but shall remain credited to the account of the
Holder in accordance with Section 8(d). 
 (b) The Corporation shall, no later than 30 days prior to the Redemption
Date, deliver written notice to each Holder stating (i) the Redemption Price, (ii) the place or places at which certificates representing the Preferred Shares are to be surrendered for payment of the Redemption Price and (iii) any
other information that may be required by applicable law. Each Holder shall have 30 days from receipt of such written notice to surrender the Holder’s certificates representing the Preferred Shares. 

(c) If on the Redemption Date, the assets of the Corporation legally available to redeem the Preferred Shares shall be insufficient to
redeem all outstanding Preferred Shares to be redeemed at the Redemption Price, then (A) the Corporation shall redeem that number of Preferred Shares that may be redeemed with the assets of the Corporation legally available therefor pro rata
among the redeeming Holders and (B) any unredeemed Preferred Shares shall be carried forward and shall be redeemed at such time as funds are legally available therefor. All Preferred Shares that are subject to redemption under this
Section 8 that have not been redeemed due to the insufficiency of legally available funds therefor shall continue to be outstanding and entitled to all dividends, if any (which shall be payable at the applicable Dividend Rate),
liquidation, voting and other rights, preferences and privileges of the Preferred Shares, until such shares are redeemed. For the avoidance of doubt, in such case, the entire Annual Dividend shall be payable as the LV Accrual, and no portion thereof
shall be allocated to the Exercise Price Accrual. 
  

 5 

 (d) If any Preferred Shares are redeemed pursuant to this Section 8, the
cumulative amount of the Exercise Price Accrual for each Preferred Share shall remain credited to the account of the Holder until the date that such Holder’s Warrant(s) are no longer exercisable in accordance with the terms of the Warrants.

 (e) All Preferred Shares that are redeemed by the Corporation and subsequently canceled by the Board of Directors pursuant to
this Section 8, shall be retired and shall not be subject to reissuance. 
 9. Transfer. Preferred
Shares may only be offered, sold, transferred or assigned in compliance with the Securities Act of 1933, as amended, and applicable state securities laws. Further, Preferred Shares may only be offered, sold, transferred or assigned in conjunction
with the sale, transfer or assignment of whole Units only. Any attempted transfer of Preferred Shares in violation of this Section 9 shall be null and void ab initio. 

10. Certain Definitions. As used in this Certificate, the following terms shall have the following respective meanings:

 “Affiliate” of, or a person “Affiliated” with, a specified person, is a person that
directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. 

“Capital Stock” of any person or entity means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in the common stock or preferred stock of such person or entity, including, without limitation, partnership and membership interests. 

“Change of Control” means (a) the sale, conveyance or disposition of all or substantially all of the assets of the
Corporation (other than pursuant to a joint venture arrangement or other transaction in which the Corporation, directly or indirectly, receives at least fifty percent (50%) of the voting equity in another entity or a general partnership);
(b) the effectuation of a transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Corporation is disposed of (other than (i) as a direct result of normal, uncoordinated trading
activities in the Common Stock generally or (ii) solely as a result of the disposition by a stockholder of the Corporation to an Affiliate of such stockholder); (c) the consolidation, merger or other business combination of the Corporation
with or into any other entity, immediately following which the prior stockholders of the Corporation fail to own, directly or indirectly, at least fifty percent (50%) of the voting equity of the surviving entity; (d) a transaction or
series of transactions in which any person or “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) acquires more than fifty percent (50%) of the voting equity of the Corporation (other than the acquisition by
a person or “group” that is an Affiliate of or Affiliated with a person or “group” that immediately prior to such acquisition, beneficially owned fifty percent (50%) or more of the voting equity of the Corporation);
(e) the replacement of a majority of the Board of Directors with individuals who were not nominated or elected by at least a majority of the directors at the time of such replacement; or (f) a transaction or series of transactions that
constitutes or results in a “going private transaction” (as defined in Section 13(e) of the Exchange Act and the regulations of the Commission issued thereunder). 

 

 6 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “Holder” means any holder of Preferred Shares, all of such holders being the “Holders.”

 “Unit” means one Preferred Share and a Warrant representing the right to purchase fifty (50) shares of
Common Stock. 
 [signature page follows] 

 

 7 

 IN WITNESS WHEREOF, the Corporation has caused this Certificate to be duly executed on its
behalf by its undersigned Secretary as of June 23, 2010. 
  

					
	By:	 	 /s/ John D. Mitchell, Jr.

		 	Name:	 	John D. Mitchell, Jr.
		 	Title:	 	Secretary

 Signature Page to
Certificate of Designation of Series E Preferred StockSubscription Agreement

 Exhibit 10.1 

SUBSCRIPTION AGREEMENT 

THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is entered into on June 23, 2010 between LIGHTING SCIENCE
GROUP CORPORATION, a Delaware corporation (the “Company”), and PEGASUS PARTNERS IV, L.P. (“Purchaser”), a Delaware limited partnership. 

WHEREAS, Purchaser has agreed to purchase units (“Units”) of the Company’s securities at a purchase
price of $127.50 per Unit, with each Unit consisting of: (a) one share of the Company’s Series E Non-Convertible Preferred Stock, par value $0.001 per share; and (b) a warrant (the “Purchaser Warrants”)
entitling the holder thereof to purchase 50 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), for an exercise price of $7.00 per share, subject to adjustment. 

WHEREAS, on July 25, 2008, the Company entered into that certain Loan Authorization Agreement (as amended, the
“Loan Agreement”) and Demand Note (as amended, the “Note”) with the Bank of Montreal (“BMO”), pursuant to which BMO established a revolving line of credit for the Company (the
“Facility”). 
 WHEREAS, the Company has agreed to apply a portion of the Consideration (as
defined below) to repay all amounts due under the Loan Agreement and the Note and to terminate the Facility. 
 WHEREAS,
concurrently with the execution of this Agreement, the Company and Purchaser are entering into a Warrant Agreement setting forth the terms and conditions of the Purchaser Warrants. 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

1. Purchase and Sale of Purchaser Units. Purchaser shall purchase from the Company and the Company shall sell to Purchaser 235,295
Units (the “Purchaser Units”) in accordance with the terms and conditions of this Agreement. 
 2.
Payment for Units; Delivery of Certificate. On or prior to the date hereof, Purchaser shall transmit by wire transfer of immediately available funds to the Company, in accordance with the wire transfer instructions previously delivered to
Purchaser, an amount equal to $30,000,112.50 (the “Consideration”). On or promptly following the date hereof, the Company shall deliver to Purchaser in accordance with this Agreement a certificate representing the Purchaser
Units purchased pursuant hereto. 
 3. Company Representations and Warranties. The Company represents and warrants to
Purchaser that as of the date hereof: 
 (a) The Company is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Delaware and has the requisite corporate power to own its properties and carry on its business as presently conducted. 

 (b) The issuance, sale and delivery of the Purchaser Units in accordance
with this Agreement have been duly authorized by all necessary corporate action on the part of the Company, and the issuance of the Common Stock upon exercise of the Purchaser Warrants, when issued, will have been duly authorized by all necessary
corporate action on the part of the Company. 
 (c) This Agreement constitutes the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms, and the execution, delivery and performance of this Agreement by the Company does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument
to which the Company is a party or any judgment, order or decree to which the Company is subject. 
 (d)
Schedule A attached hereto sets forth a true, complete and correct listing of all of the Company’s outstanding: (i) shares of Common Stock; (ii) shares of preferred stock, and (iii) securities convertible into or
exchangeable for shares of Common Stock (the “Derivative Securities”), including the applicable exercise price of such Derivative Securities, other than any Derivative Securities issued pursuant to the Company’s Amended
and Restated Equity-Based Compensation Plan. 
 (e) SEC Reports; Financial Statements 

 

	 	i.	As of their respective filing dates, the most recent Form 10-K and Form 10-Q filed by the Company with the Securities and Exchange Commission (the
“SEC” and such filings the “Company SEC Documents”) complied in all material respects with the applicable requirements of the Securities Act of 1933, as amended (the “1933
Act”), the Securities Exchange Act of 1934, as amended, and the Sarbanes-Oxley Act of 2002, as the case may be, including, in each case, the rules and regulations promulgated thereunder, and none of the Company SEC Documents contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Except to the
extent that information contained in any Company SEC Document has been revised or superseded by a document the Company subsequently filed with the SEC, none of the Company SEC Documents contains any untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

 

	 	ii.	The financial statements (including the related notes thereto) included (or incorporated by reference) in the Company SEC Documents comply as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with generally accepted accounting principles (“GAAP”) (except, in the
case of unaudited statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects the consolidated financial
position of the Company and its subsidiaries as of the dates thereof and their respective consolidated results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal and recurring year-end
audit adjustments that were not, or are not expected to be, material in amount), all in accordance with GAAP and the applicable rules and regulations promulgated by the SEC. Since May 17, 2010, the Company has not made any change in the
accounting practices or policies applied in the preparation of its financial statements, except as required by GAAP, the rules of the SEC or policy or applicable law. 

 

 2 

 4. Purchaser Representations and Warranties. Purchaser represents and warrants to the
Company that as of the date hereof: 
 (a) The Purchaser Units are being acquired for Purchaser’s own
account and not with a view to, or intention of, distribution thereof in violation of the 1933 Act, or any applicable state securities laws, and the Purchaser Units will not be disposed of in contravention of the 1933 Act or any applicable state
securities laws. 
 (b) Purchaser is sophisticated in financial matters and is able to evaluate the risks and
benefits of an investment in the Purchaser Units. Purchaser understands and acknowledges that such investment is a speculative venture, involves a high degree of risk and is subject to complete risk of loss. 

(c) Purchaser is able to bear the economic risk of its investment in the Purchaser Units for an indefinite period of time
because the Purchaser Units have not been registered under the 1933 Act and, therefore, cannot be sold unless subsequently registered under the 1933 Act or an exemption from such registration is available. Purchaser: (i) understands and
acknowledges that the Purchaser Units being issued to Purchaser have not been registered under the 1933 Act, nor under the securities laws of any state, nor under the laws of any other country and (ii) recognizes that no public agency has
passed upon the accuracy or adequacy of any information provided to Purchaser or the fairness of the terms of its investment in the Purchaser Units. 

(d) Purchaser has had an opportunity to ask questions and receive answers concerning the terms and conditions of the
offering of the Units and has had full access to such other information concerning the Company as he has requested. 

(e) This Agreement constitutes the legal, valid and binding obligation of Purchaser, enforceable in accordance with its
terms, and the execution, delivery and performance of this Agreement by Purchaser does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which Purchaser is a party or any judgment, order or decree
to which Purchaser is subject. 
 (f) Purchaser became aware of the offering of the Purchaser Units other than by
means of general advertising or general solicitation. 
  

 3 

 (g) Purchaser is an “accredited investor” as that
term is defined under the 1933 Act and Regulation D promulgated thereunder. 
 5. Covenants. 

(a) Termination of Facility. Upon receipt of the Consideration, the Company will apply the necessary portion of
such Consideration to repay all amounts due under the Loan Agreement and the Note and to permanently terminate the Facility. 

(b) Purchaser Legal Fees. The Company will pay Purchaser’s or its affiliates’ outstanding invoices for
legal services from Akin, Gump, Strauess, Hauer & Feld LLP (“Akin Gump”) to the extent that such invoices relate to services rendered in conjunction with Purchaser’s or its affiliates’ investment in the
Company. In addition, the Company will pay up to $50,000 of the legal fees of Akin Gump incurred by Purchaser in connection with the transactions contemplated by this Agreement. 

6. Indemnification by the Company. The Company shall save, defend, indemnify and hold harmless the Purchaser and its affiliates and the respective
representatives, successors and assigns of each of the foregoing from and against any and all losses, damages, liabilities, deficiencies, claims, diminution of value, interest, awards, judgments, penalties, costs and expenses (including
attorneys’ fees, costs and other out-of-pocket expenses incurred in investigating, preparing or defending the foregoing) (hereinafter collectively, “Losses”), asserted against, incurred, sustained or suffered by any of the foregoing
as a result of, arising out of or relating to any breach of any representation, warranty or covenant made by the Company and contained in this Agreement and the schedule hereto. 

7. General Provisions. 

(a) Choice of Law. The laws of the State of New York without reference to the conflict of laws provisions thereof,
will govern all questions concerning the construction, validity and interpretation of this Agreement. 
 (b)
Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of the Company and Purchaser. 

(c) Counterparts. This Agreement may be executed in counterparts, each of which shall be an original and all of
which shall constitute a single agreement. 
 (d) Acceptance by the Company. It is understood that this
subscription is not binding on the Company until the Company accepts it, which acceptance is at the sole discretion of the Company and shall be noted by execution of this Agreement by the Company where indicated. 

(e) Survival of Covenants, Representations and Warranties. All covenants, representations and warranties contained
herein or made in writing by any party in connection herewith shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and shall survive until the close of business on the 120th day
following the expiration of the applicable statute of limitations (after giving effect to any waiver, mitigation or extension thereof). 
  

 4 

 (f) Stockholder. Purchaser hereby acknowledges that, once accepted by the Company,
this subscription is not revocable by Purchaser. Purchaser agrees that, if this subscription is accepted, Purchaser shall, and Purchaser hereby elects to: (i) become a stockholder of the Company; (ii) be bound by the terms and provisions
hereof; and (iii) execute any and all further documents when and as requested by the Company in connection with Purchaser becoming a stockholder of the Company. 

* * * * * 
  

 5 

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

			
	COMPANY:
	
	LIGHTING SCIENCE GROUP CORPORATION
		
	By:	 	 /s/ John T. Stanley

	Name:	 	John T. Stanley
	Title:	 	Chief Operating Officer
	
	PURCHASER:
	
	PEGASUS PARTNERS IV, L.P.
		
	By:	 	Pegasus Investors IV, L.P.
		 	its general partner
		
	By:	 	Pegasus Investors IV GP, L.L.C.
		 	its general partner
		
	By:	 	 /s/ Richard Weinberg

	Name:	 	Richard Weinberg
	Title:	 	Vice President

 Signature Page to
Subscription Agreement 

 SCHEDULE A 

 

										
	 	  	Common Stock	  	Preferred Stock	  	Warrants
	 	  	Amount	  	Amount	  	Price	  	Amount
					
	 Common Stock
	  	30,534,410	  		  			  	
					
	 Stock Options
	  		  		  			  	
					
	 Preferred Stock
	  		  		  			  	
	 Series B
	  		  	2,000,000	  			  	
	 Series C
	  		  	251,739	  	$	0.84866	  	3,782,056
	 Series D
	  		  	67,172,202	  	$	6.00	  	61,841,720
		  		  		  	$	12.00	  	5,330,482
					
	 Warrants
	  		  		  			  	
	 2007 PIPE
	  		  		  	$	6.00	  	842,742
	 BMO
	  		  		  	$	7.00	  	942,857
	 Debt Guarantee
	  		  		  	$	6.00	  	121,375
	 ICurie / Celsia
	  		  		  	$	6.40	  	6,250
	 ABM Industries, Inc.
	  		  		  	$	8.00	  	20,000
		  	 	  	 	  			  	 
					
	 TOTAL
	  	30,534,410	  	69,423,941	  			  	72,887,481

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]