Document:

Exhibit 10.1

 

ACQUISITION
AGREEMENT

 

This
Acquisition Agreement (this “Agreement”), dated February 13, 2015 is by and among China United Insurance Service,
Inc., a company incorporated under the laws of the state of Delaware of United States (“CUII”), Action Holdings
Financial Limited, a company with limited liability incorporated under the laws of British Virgin Islands (“AHFL”)
and a wholly-owned subsidiary of CUII and Mr. LI CHWAN HAU, a Taiwan citizen with Taiwan ID No: B120352285, the shareholder of
Genius Holdings Financial Limited (“GHFL”) (the “Selling Shareholder”).

 

WHEREAS,
the board of directors of AHFL has (i) approved the acquisition of GHFL by AHFL (the “Acquisition”), with
GHFL becoming a direct wholly owned Subsidiary of AHFL as a result of the Acquisition, (ii) approved the execution, delivery
and performance by AHFL of this Agreement and the consummation of the Acquisition contemplated hereby;

 

WHEREAS,
the board of directors of CUII has (i) determined that it is in the best interests of CUII and its shareholders to enter
into the Acquisition and related transactions, (ii) approved the Acquisition with GHFL becoming a direct wholly owned Subsidiary
of AHFL as a result of the Acquisition, (iii) approved the granting of the Put Option, (iv) approved the execution, delivery
and performance by CUII of this Agreement and the consummation of the Acquisition contemplated hereby;

 

WHEREAS,
the board of directors of GHFL has (i) determined that it is in the best interests of GHFL and its shareholder, and declared
it advisable, to enter into this Agreement, (ii) approved the execution, delivery and performance by GHFL of this Agreement
and the consummation of the Acquisition contemplated hereby; and (iii) recommended the authorization and approval by the
Shareholder of GHFL of this Agreement and the Acquisition;

 

NOW,
THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements herein contained, and
intending to be legally bound hereby, AHFL and the Selling Shareholder hereby agree as follows:

 

1.           DEFINITIONS

 

1.1         Definitions.
The following terms have the following meanings, unless the context indicates otherwise:

 

(a)          “Additional
CUII Shares” shall have the meaning specified in Section 2.8;

 

(b)          "Agreement"
shall mean this Agreement, and all the exhibits, schedules and other documents attached to or referred to in this Agreement, and
all amendments and supplements, if any, to this Agreement;

 

(c)          "AHFL
Shares" shall mean 352,166 fully paid and non-assessable shares of AHFL Common Stock to be issued to the Selling Shareholder
by AHFL on the Closing Date pursuant to this Agreement;

 

    	 

    	 

    

 

(d)          "Closing"
shall mean the completion of the Transaction, in accordance with Section 7 hereof, at which time the Closing Documents shall be
exchanged among the parties, except for those documents or other items specifically required to be exchanged at a later time;

 

(e)          "Closing
Date" shall mean a date mutually agreed upon by the parties hereto in writing and in accordance with Section 10.5 following
the satisfaction or waiver by AHFL and the Selling Shareholder of the closing
conditions set forth in Sections 5.1 and 5.2 respectively;

 

(f)          "Closing
Documents" shall mean the papers, instruments and documents required to be executed and delivered at the Closing pursuant
to this Agreement;

 

(g)          “CUII
Shares” shall have the meaning specified in Section 2.8;

 

(h)          "Exchange
Act" shall mean the United States Securities Exchange Act of 1934, as amended;

 

(i)          
“Genius Broker” shall mean Genius Insurance Broker Co., Ltd., which is approximately 15% held by Taiwan Genius;

 

(j)          “GHFL”
shall mean Genius Holdings Financial Limited, a company with limited liability incorporated under the laws of the British Virgin
Islands;

 

(k)          "GHFL
Shares" shall mean 704,333 shares of common stock of GHFL held by the Selling Shareholder, being all of the issued and
outstanding capital stock of GHFL;

 

(l)          "Group
Companies" shall collectively mean GHFL, Taiwan Genius and Genius Broker and each a "Group Company";

 

(m)          “Intellectual
Property Assets” shall mean all functional business names, trading names, registered and unregistered trademarks, service
marks, all patents, inventions, methods, processes and discoveries that may be patentable, all copyrights in both published works
and unpublished works, all know-how, trade secrets, confidential information, customer lists, software, technical information,
data, process technology, plans, drawings, and blue prints owned, used, or licensed by any Group Company as licensee or licensor,
as well as the related application rights thereof.

 

(n)          "Liabilities"
shall mean any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation
or responsibility, fixed or unfixed, known or unknown, liquidated or unliquidated, secured or unsecured, matured or unmatured,
absolute, contingent or otherwise;

 

(o)          “NT$”
shall mean the official currency of Taiwan;

 

(p)          “Put
Option” shall have the meaning specified in Section 2.8;

 

(q)          "SEC"
shall mean the United States Securities and Exchange Commission;

 

(r)          "Securities
Act" shall mean the United States Securities Act of 1933, as amended;

 

    	 

    	 

    

 

(s)          “Taiwan
Genius”, shall mean Genius Investment Consultant Co., Ltd., a company limited by shares incorporated under the laws
of Taiwan, which is 100% held by GHFL;

 

(t)          "Taxes"
shall mean international, federal, state, provincial and local income taxes, capital gains tax, value-added taxes, franchise,
personal property and real property taxes, levies, assessments, tariffs, duties (including any customs duty), business license
or other fees, sales, use and any other taxes relating to the assets of the designated party or the business of the designated
party for all periods up to and including the Closing Date, together with any related charge or amount, including interest, fines,
penalties and additions to tax, if any, arising out of tax assessments; and

 

(u)          "Transaction"
shall mean the purchase of GHFL Shares by AHFL from the Selling Shareholder in consideration for the issuance of the AHFL Shares
and the grant of the Put Option.

 

1.2           Currency.
All references to currency referred to in this Agreement are in United States Dollars (US$), unless expressly stated otherwise.

 

2.             ACQUISITION
of BVI CO.

 

2.1           Acquisition
of GHFL. Subject to the terms and conditions of this Agreement, the Selling Shareholder hereby covenants and agrees to sell,
assign and transfer to AHFL, and AHFL hereby covenants and agrees to purchase from the Selling Shareholder all of GHFL Shares
held by the Selling Shareholder. Upon completion of the Transaction contemplated herein, GHFL shall become a direct wholly-owned
subsidiary of AHFL.

 

2.2           Consideration.
As consideration for the acquisition of GHFL, (i) AHFL shall allot and issue the AHFL Shares to the Selling Shareholder and (ii)
CUII grants the Put Option to the Selling Shareholder, pursuant to which the Selling Shareholder may sell such AHFL Shares to
CUII in exchange for the CUII Shares (as defined below).

 

For
the avoidance of doubt, the Selling Shareholder may, in its discretion, designate any person to receive the above-mentioned consideration
directly from AHFL.

 

All
certificates representing the any CUII Shares issued pursuant to the Put Option will be endorsed with the following legend pursuant
to the Securities Act in order to reflect the fact that the CUII Shares will be issued to the Selling Shareholder pursuant to
an exemption from the registration requirements of the Securities Act:

 

THE
SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

    	 

    	 

    

 

NONE
OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT
IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING
THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON”
ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP AGREEMENT AND MAY NOT BE TRANSFERRED UNLESS IN ACCORDANCE
WITH SUCH AGREEMENT. BY ACCEPTING ANY INTEREST IN SUCH SECURITIES, THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE
TO AND SHALL BECOME BOUND BY THE LOCK UP AGREEMENT.

 

2.3           Fractional
Shares. Notwithstanding any other provision of this Agreement, no certificate for fractional shares of the AHFL Shares or
the CUII Shares/Additional CUII Shares, if any, will be issued in the Transaction. In lieu of any such fractional shares, if the
Selling Shareholder would otherwise be entitled to receive a fraction of a share of the AHFL Shares or the CUII Shares/Additional
CUII Shares, as applicable, pursuant to this Agreement, the Selling Shareholder will be entitled to have such fraction rounded
up to the nearest whole number of the AHFL Shares or the CUII Shares/Additional CUII Shares, as applicable, and will receive from
AHFL or CUII, as applicable, a stock certificate representing same.

 

2.4           Closing
Date. The Closing will take place, subject to the terms and conditions of this Agreement, on the Closing Date.

 

2.5           Restricted
Shares. The Selling Shareholder acknowledges and agrees for his own sake that the Put Option is being issued or the CUII Shares/Additional
CUII Shares to be issued upon exercise of the Put Option, if any, pursuant to an exemption from the prospectus delivery and registration
requirements of the Securities Act. The Selling Shareholder for his own sake, acknowledges and agrees that the Put Option or the
CUII Shares/Additional CUII Shares, if any, issued pursuant to the terms and conditions set forth in this Agreement as are required
under applicable securities laws and as a result may not be sold, transferred or otherwise disposed, except pursuant to an effective
registration statement under the Securities Act, or pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and in each case only in accordance with all applicable securities laws.

 

2.6           Exemptions.
The Selling Shareholder for his own sake, acknowledges that AHFL has advised the Selling Shareholder and GHFL, that AHFL or CUII,
as applicable, is relying upon the representations and warranties of the Selling Shareholder for his own sake, set forth in Section
3 of this Agreement to issue the AHFL Shares or the CUII Shares/Additional CUII Shares, as applicable, under an exemption from
the prospectus delivery and registration requirements of the Securities Act.

 

    	 

    	 

    

 

2.7           Lock-up
Agreements. The Selling Shareholder acknowledges and agrees that he: (i)will not, for a period of 4 years commencing from
the issuance date of the stock certificate, representing his AHFL Shares, sell, transfer or otherwise dispose (“Transfer”)
any of his AHFL Shares; (ii) may Transfer up to 20% of his AHFL Shares commencing from the fourth anniversary date; (iii) may
Transfer up to an additional 30% of his AHFL Shares commencing from the fifth anniversary date; and (iv) may freely Transfer any
of his remaining AHFL Shares commencing from the sixth anniversary date.

 

AHFL
may, in its sole discretion, determine to issue multiple stock certificates representing the AHFL Shares corresponding to the
respective lock-up periods to the Selling Shareholder.

 

2.8           Put
Option. The Selling Shareholder is hereby granted by CUII an option (the “Put Option”) to sell all of its
AHFL Shares to CUII in exchange for 352,166 shares of common stock of CUII (the “CUII Shares”). The Put Option
shall be exercisable by the Selling Shareholder at any time within 6 months after the Closing Date.

 

(a)  Exercise.
To exercise the Put Option, the Selling Shareholder shall provide an irrevocable written notice to CUII specifying the proposed
exercise date, provided that the notice shall be at least 15 days prior to the proposed exercise date. The CUII Shares shall be
issued to the Selling Shareholder within 15 Business Days after the proposed exercise date.

 

(b)  Lock-up.
The CUII Shares issued shall be subject to the same lock-up arrangement as set forth in Section 2.7 above.

 

(c)  Legend
and Representations. All certificates representing the CUII Shares, and any Additional
CUII Shares, if any, will be endorsed with the same legend as described in Section 2.2 pursuant to the Securities Act in order
to reflect the fact that the CUII Shares will be issued to the Selling Shareholder pursuant to an exemption from the registration
requirements of the Securities Act. In addition the Shareholder must update the representations and warranties contained in this
agreement at the time of the exercise of the Put Option and at the time of issuance of any Additional CUII Shares.

 

(d)  Adjustment.
On the fourth anniversary date of the Section 2.7 above, if the Guaranteed Price per share is higher than the Average Price per
share, then an adjustment shall be made, pursuant to which additional common shares of CUII (the “Additional CUII Shares”)
shall be issued to the Selling Shareholder according to the formula below:

 

Additional
CUII Shares = [(Guaranteed Price per share – Average Price per share) X Number of CUII Shares held by the Selling Shareholder]
/ Average Price per share

  

    	 

    	 

    

 

For
the purpose of this Agreement,

 

Guaranteed
Price per share = [(Average earnings per share of Genius Broker actually distributed for the fiscal years of 2014, 2015, 2016
and 2017) X 10 + (the aggregate earnings per share of Genius Broker actually distributed for the fiscal years of 2014, 2015, 2016
and 2017)] X 2 / 30

 

Average
Price per share equals to the average closing trading prices of CUII during the full preceding year.

 

2.9           Right
of First Refusal. If AHFL or CUII intends to Transfer, directly or indirectly, of any shares of Genius Broker, it shall notify
the Selling Shareholder, of the intended price and number of shares to be sold in prior written notice, and the Selling Shareholder
may, within 30 days of the preceding notice, notify AHFL or CUII to purchase such shares at equal price. Failure to do so, AHFL
is free to Transfer such shares.

 

3.            REPRESENTATIONS
AND WARRANTIES of THE SELLING SHAREHOLDER

 

On the date
of this Agreement and as of the Closing Date, the Selling Shareholder, hereby represents and warrants to AHFL and CUII, and acknowledges
that AHFL and CUII is relying upon such representations and warranties, in connection with the execution, delivery and performance
of this Agreement, notwithstanding any investigation made by or on behalf of AHFL and CUII.

 

3.1           Organization
and Good Standing. Each Group Company is a corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation and has the requisite corporate power and authority to own, lease and to carry on its business
as now being conducted. Each Group Company is duly qualified to do business and is in good standing as a corporation in each of
the jurisdictions in which it owns property, leases property, does business, or is otherwise required to do so, except where the
failure to be so qualified would not have a material adverse effect, individually or in the aggregate, on the business, operations,
assets, properties, prospects or condition (financial or otherwise) of each such Group Company (a "Genius Material Adverse
Effect").

 

3.2           Authority.
This Agreement has been duly executed and delivered by the Selling Shareholder and this Agreement is valid and binding obligations
of the Selling Shareholder enforceable in accordance with their respective terms except: (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally;
and (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

3.3         Group
Structure.

 

(a)          Schedule
I of this Agreement includes a chart setting forth each Group Company immediately prior to and following the Closing.

 

(b)          Except
for interests held in the other Group Companies, none of the Group Companies has any subsidiaries or owns or controls, directly
or indirectly, through contract or otherwise, any interest in any other corporation, partnership, trust, joint venture, association
or other entity.

 

    	 

    	 

    

 

3.4          Capitalization
of the Group Companies.

 

(a)          The
entire authorized capital stock and other equity securities of GHFL consist of 50,000,000 shares of common stock. As of the date
of this Agreement, there are 704,333 shares of GHFL common stock issued and outstanding. All of the issued and outstanding shares
of GHFL common stock have been duly authorized, are validly issued, were not issued in violation of any pre-emptive rights and
are fully paid and non-assessable, are not subject to pre-emptive rights and were issued in full compliance with the laws of the
British Virgin Islands and its Constitution and Articles of Association. There are no outstanding options, warrants, subscriptions,
conversion rights, or other rights, agreements, or commitments obligating GHFL to issue any additional common shares of GHFL common
stock, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from GHFL
any common shares of GHFL common stock. There are no agreements or arrangements purporting to restrict the transfer of GHFL common
stock and no voting agreements, shareholders' agreements, voting trusts, or other agreements or arrangements restricting or affecting
the voting of GHFL common stock.

 

(b)          Taiwan
Genius' registered capital is TWD21,130,000. As of the date of this Agreement, there are 2,113,000 shares of Taiwan Genius common
stock issued and outstanding. Taiwan Genius is holding 15% equity interest of Genius Insurance Broker Co., Ltd. (“Genius
Broker”).

 

3.5          Corporate
Records of the Group Companies. The corporate records of each Group Company, as required to be maintained by them pursuant
to all applicable laws, are accurate, complete and current in all material respects, and the minute books of each Group Company
are, in all material respects, correct and contain all records required by all applicable laws, as applicable, with regard to
all proceedings, consents, actions and meetings of the shareholders and the board of directors of each Group Company.

 

3.6          Non-Contravention.
Neither the execution, delivery or performance of this Agreement, nor the consummation of the Transaction, will:

 

(a)          conflict
with, result in a violation of, cause a default under (with or without notice, lapse of time or both) or give rise to a right
of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under,
or result in the creation of any lien, security interest, charge or encumbrance upon any of the material properties or assets
of any Group Company under any term, condition or provision of any loan or credit agreement, note, debenture, bond, mortgage,
indenture, lease or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation
applicable to any Group Company or any of their respective material property or assets;

 

(b)          violate
any provision of the applicable incorporation or charter documents of any Group Company; or

 

(c)          violate
any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable
to any Group Company or any of their respective material property or assets.

 

    	 

    	 

    

 

3.7          Actions
and Proceedings. There is no action, suit, judgment, claim, demand, proceeding or governmental investigation outstanding or
pending, or, to the Knowledge of the Selling Shareholder, threatened against or affecting any Group Company or which involves
any of the business, properties or assets of any Group Company, except routine or temporary examination conducted by relevant
local authorities in Taiwan from time to time. To the Knowledge of the Selling Shareholder, neither the Selling Shareholder nor
any officer or director of any Group Company is a defendant in or under investigation with respect to, any action, suit, judgment,
claim, demand, proceeding or governmental investigation in connection with his status as a Selling Shareholder or an officer or
director of a Group Company, which could reasonably be expected to have a Material Adverse Effect to the Group Companies. To the
Knowledge of the Selling Shareholder, there is no reasonable basis for any action, suit, judgment, claim, demand, proceeding or
governmental investigation that, based upon the likelihood of its being asserted and its success if asserted, could reasonably
be expected to have a Genius Material Adverse Effect.

 

3.8          Compliance.
To the Knowledge of the Selling Shareholder, each Group Company is in material compliance with, is not in default or violation
in any material respect under, and has not been charged with or received any notice at any time of any material violation of any
statute, law, ordinance, regulation, rule, decree or other applicable regulation to the business or operations of such Group Company.

 

3.9          Filings,
Consents and Approvals. No filing or registration with, no notice to and no permit, authorization, consent, or approval of
any public or governmental body or authority or other person or entity is necessary for the consummation by the Group Companies
of the Transaction contemplated by this Agreement or to enable AHFL to continue to conduct GHFL's business after the Closing Date
in a manner which is consistent with that in which the business is presently conducted.

 

3.10        Financial
Representations. The balance sheets for Genius Broker for the period from July 1, 2012 to June 30, 2013, together with related
statements of income, cash flows, and changes in shareholder's equity for such fiscal years (collectively, the "Financial
Statements") to be supplied on or before the Closing Date:

 

(a)          are
in accordance with the books and records of Genius Broker; and

 

(b)          present
fairly and accurately the financial condition of Genius Broker as of the respective dates indicated and the results of operations
for such period.

 

3.11        Absence
of Undisclosed Liabilities. To the Knowledge of the Selling Shareholder, none of the Group Companies has any material Liabilities
that exceed USD50,000, which:

 

(a)          are
not set forth in the Financial Statements or have not heretofore been paid or discharged;

 

(b)          did
not arise in the regular and ordinary course of business under any agreement, contract, commitment, lease or plan specifically
disclosed in writing to AHFL; or

 

(c)          have
not been incurred in amounts and pursuant to practices consistent with past business practice, in or as a result of the regular
and ordinary course of its business since the date of the last Financial Statements.

 

To
the Knowledge of the Selling Shareholder, there are no material Liabilities, contingent or otherwise, of any Group Company which
are required to be reserved against or disclosed in the Financial Statements which are not so reserved or disclosed.

 

    	 

    	 

    

 

3.12       Tax
Matters.

 

(a)          each
Group Company has timely filed all tax returns in connection with any Taxes which are required to be filed on or prior to the
date hereof and the Closing Date, taking into account any extensions of the filing deadlines which have been validly granted to
such Group Company, and all such returns are true and correct in all material respects;

 

(b)          each
Group Company has paid all Taxes that have become or are due with respect to any period ended on or prior to the date hereof,
and has established an adequate reserve therefore on its balance sheets for those Taxes not yet due and payable, except for any
Taxes the non-payment of which could not have a Genius Material Adverse Effect;

 

(c)          none
of the Group Companies is presently under or has received notice of, any contemplated investigation or audit by regulatory or
governmental agency of body or any foreign or state taxing authority concerning any fiscal year or period ended prior to the date
hereof or the Closing Date, except routine examination conducted by relevant local authorities in Taiwan;

 

(d)          all
Taxes required to be withheld on or prior to the date hereof from employees for income Taxes, social security Taxes, unemployment
Taxes and other similar withholding Taxes have been properly withheld and, if required on or prior to the date hereof, have been
deposited with the appropriate governmental agency subject to applicable local laws and regulations of Taiwan; and

 

(e)          the
Financial Statements contain full provision for all Taxes including any deferred Taxes that may be assessed to any Group Company
for the accounting period ended on the date of the Financial Statements or for any prior period in respect of any transaction,
event or omission occurring, or any profit earned, on or prior to the date of the Financial Statements or for any profit earned
by any Group Company on or prior to the date of the Financial Statements or for which any Group Company is accountable up to such
date and all Liabilities for Taxes have been provided for or disclosed in the Financial Statements.

 

3.13        Absence
of Changes. To the knowledge of the Selling Shareholder, since December 31, 2014,none of the Group Companies has:

 

(a)          incurred
any Liabilities, other than Liabilities incurred in the ordinary course of business consistent with past practice, or discharged
or satisfied any lien or encumbrance, or paid any Liabilities, other than in the ordinary course of business consistent with past
practice, or failed to pay or discharge when due any Liabilities of which the failure to pay or discharge has caused or will cause
any material damage or risk of material loss to it or any of its assets or properties;

 

(b)          sold,
encumbered, assigned or transferred any material fixed assets or properties except for ordinary course business transactions consistent
with past practice;

 

    	 

    	 

    

 

(c)          created,
incurred, assumed or guaranteed any indebtedness for money borrowed, or mortgaged, pledged or subjected any of the material assets
or properties of any Group Company to any mortgage, lien, pledge, security interest, conditional sales contract or other encumbrance
of any nature whatsoever;

 

(d)          made
or suffered any amendment or termination of any material agreement, contract, commitment, lease or plan to which it is a party
or by which it is bound, or cancelled, modified or waived any substantial debts or claims held by it or waived any rights of substantial
value, other than in the ordinary course of business;

 

(e)          declared,
set aside or paid any dividend or made or agreed to make any other distribution or payment in respect of its capital shares or
redeemed, purchased or otherwise acquired or agreed to redeem, purchase or acquire any of its capital shares or equity securities;

 

(f)          suffered
any damage, destruction or loss, whether or not covered by insurance, that materially and adversely effects its business, operations,
assets, properties or prospects;

 

(g)          suffered
any material adverse change in its business, operations, assets, properties, prospects or condition (financial or otherwise);

 

(h)          received
notice or had Knowledge of any actual or threatened labour trouble, termination, resignation, strike or other occurrence, event
or condition of any similar character which has had or might have an adverse effect on its business, operations, assets, properties
or prospects;

 

(i)          other
than in the ordinary course of business, increased the salaries or other compensation of, or made any advance (excluding advances
for ordinary and necessary business expenses) or loan to, any of its employees or directors or made any increase in, or any addition
to, other benefits to which any of its employees or directors may be entitled;

 

(j)          entered
into any transaction other than in the ordinary course of business consistent with past practice; or

 

(k)          agreed,
whether in writing or orally, to do any of the foregoing.

 

3.14        Subsidiaries.
Except as set forth on Schedule I, none of the Group Companies has any subsidiaries or agreements of any nature to acquire
any subsidiary or to acquire or lease any other business operations. Each Group Company owns all of the shares of each of its
subsidiaries and there are no outstanding options, warrants, subscriptions, conversion rights, or other rights, agreements, or
commitments obligating any Group Company or its respective subsidiaries to issue any additional common shares of such Group Company
or subsidiary, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire
from any Group Company or subsidiary any shares of such Group Company or subsidiary.

 

3.15        Personal
Property. Each Group Company possesses, and has good and marketable title to, or a valid leasehold interest in, all property
and assets necessary for the continued operation of the business of such Group Company as presently conducted and as represented
to AHFL. All such property and assets are used in the business of the Group Companies. All such property and assets are in reasonably
good operating condition (normal wear and tear excepted), and are reasonably fit for the purposes for which such property and
assets are presently used. All material equipment, furniture, fixtures and other tangible personal property and assets owned by
any Group Company is owned by such Group Company free and clear of all liens, security interests, charges, encumbrances, and other
adverse claims.

 

    	 

    	 

    

 

3.16         Intellectual
Property. Each Group Company owns or holds an interest in all Intellectual Property Assets necessary for the operation of
the business of such Group Company as it is currently conducted. The Group Companies are the owners of all right, title, and interest
in and to each of the Intellectual Property Assets, free and clear of all liens, security interests, charges, encumbrances, and
other adverse claims, and has the right to use without payment to a third party of all the Intellectual Property Assets. No employee,
director, officer or shareholder of any Group Company owns directly or indirectly in whole or in part, any Intellectual Property
Asset which any Group Company is presently using or which is necessary for the conduct of its business, and none of the Intellectual
Property Assets, if any, used by any Group Company infringes or is alleged to infringe any intellectual property rights of any
third party.

 

3.17         Employees
and Consultants. All employees and consultants of the Group Companies have been paid all salaries, wages, income and any other
sums due and owing to them by each such Group Company, as applicable, as at the end of the most recent completed pay period. None
of the Group Companies has any labour conflict with any employees that could reasonably be expected to have a Genius Material
Adverse Effect. To the Knowledge of Selling Shareholder, no employee of any Group Company is in violation of any term of any employment
contract, non-disclosure agreement, non-competition agreement or any other contract or agreement relating to the relationship
of such employee with any Group Company or any other nature of the business conducted or to be conducted by any Group Company.
Each Group Company has complied in all material respects with all employment laws, rules, regulations and ordinances applicable
to such Group Company.

 

3.18         Real
Property. Each of the leases, subleases, claims or other real property interests (collectively, the "Leases")
to which any Group Company is a party or is bound is legal, valid, binding, enforceable and in full force and effect in all material
respects (the "Leased Real Property"). All rental and other payments required to be paid by any Group Company
pursuant to any such Leases have been duly paid and no event has occurred which, upon the passing of time, the giving of notice,
or both, would constitute a breach or default by any party under any of the Leases. The Leases will continue to be legal, valid,
binding, enforceable and in full force and effect on identical terms following the Closing Date. None of the Group Companies has
assigned, transferred, conveyed, mortgaged, deeded in trust, or encumbered any interest in the Leases or the leasehold property
pursuant thereto. Other than the owned real property and the Leased Real Property, none of the Group Companies has any other interest
in real property, whether owned, leased or otherwise, and the owned real property and the Leased Real Property constitute all
of the real property necessary to conduct the Group Companies' businesses as currently conducted.

 

3.19         Material
Contracts and Transactions. To the Knowledge of the Selling Shareholder, each Material Contract is binding and enforceable
against the other party thereto and there exists no material breach or violation of or default by the other party thereto under
any Material Contract, or any event that with notice or the lapse of time, or both, will create a material breach or violation
thereof or default under any Material Contract by the other party thereto. There exists no actual or threatened termination, cancellation,
or limitation of, or any amendment, modification, or change to any Material Contract. For the purpose of this Section 3.19,
material contract shall mean any contract that involves economic rights or obligation of any Group Company that exceeds or is
expected to exceed USD50,000.

 

    	 

    	 

    

 

3.20         Certain
Transactions. None of the Group Companies is a guarantor or indemnitor of any indebtedness of any third party, including any
person, firm or corporation.

 

3.21         No
Brokers. None of the Group Companies nor any Selling Shareholder has incurred any obligation or liability to any party for
any brokerage fees, agent's commissions, or finder's fees in connection with the Transaction contemplated by this Agreement.

 

3.22         Completeness
of Disclosure. No representation or warranty by the Selling Shareholder in this Agreement nor any certificate, schedule, statement,
document or instrument furnished or to be furnished to AHFL pursuant hereto contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact required to be stated herein or therein or necessary to make any
statement herein or therein not materially misleading.

 

3.23         Licenses.
(i) Each Group Company owns or validly holds all licenses that are necessary to conduct its business as presently conducted and
as proposed to be conducted and that are necessary to own and operate its assets and properties; (ii) each license is valid, binding
and in full force and effect; (iii) no Group Company is or has at any time been, or has received any notice that it is or has
at any time been, in default (or with the giving of notice or lapse of time or both, would be in default) under any license.

 

3.24         Insurance.
The insurance policies of each Group Company comply with the minimum insurance requirements in its industry and cover such risks
and contain such policy limits, types of coverage and deductibles as are adequate to insure fully against risks to which each
such Group Company and its employees, business, properties and other assets would reasonably be expected to be exposed in the
operation of its business as currently conducted. All of the required insurance policies are valid and enforceable policies, all
premiums due and payable under all such policies and bonds have been paid. The Selling Shareholder has no knowledge or belief,
after due inquiry of any threatened termination of, or material premium increase with respect to, any of such policies.

 

3.25         Interested
Party Transactions. In the past twelve (12) months, none of the Group Companies, nor any shareholder, officer or director
thereof, or any family member or affiliate of any of the foregoing, has either directly or indirectly: (a) a material interest
in any person which purchases from or sells, licenses or furnishes to any Group Company any goods, property, technology, intellectual
or other property rights or services related to the business of the Group Companies; (b) a material interest in any contract (whether
written or verbal) with respect to the business to which the Group Company is a party or by which it may be bound or affected;
or (c) any other interest in, or is a party to, any other transaction that would be required to be disclosed as a related party
transaction pursuant to Rule 404 of Regulation S-K promulgated under the Securities Act, if each Group Company were subject to
the requirements thereof.

 

    	 

    	 

    

 

3.26        Restricted
Securities. The Selling Shareholder, for his own sake, acknowledges and understands that the AHFL Shares are characterized
as "restricted securities" under the federal securities laws, inasmuch as they are being acquired in a transaction not
involving a public offering, and that under such laws and applicable regulations as well as subject to the lock-up agreements,
the AHFL Shares may be resold without registration under the Securities Act only if an exemption from registration under the Securities
Act is available.

 

3.27        Investment
Representations.

 

The
Selling Shareholder, for his own sake, acknowledges and agrees that:

 

(a)          The
AHFL Shares, the Put Option, and any shares issues upon exercise of the Put Option have not been registered under the Securities
Act of 1933, as amended (the “1933 Act”), or under any state securities or “blue sky” laws of any state
of the United States, and are being offered only in a transaction not involving any public offering within the meaning of the
1933 Act, and, unless so registered, may not be offered or sold, directly or indirectly, in the United States or to U.S. Persons
(as defined herein), except in accordance with the provisions of Regulation S under the 1933 Act, pursuant to an effective registration
statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements
of the 1933 Act, and in each case only in accordance with applicable state securities laws.

 

(b)          AHFL
and CUII have not undertaken, and will have no obligation, to register any of the AHFL Shares, the Put Option and any shares issued
pursuant to exercise of the Put Option under the 1933 Act.

 

(c)          AHFL
and CUII will refuse to register any transfer of the AHFL Shares, the Put Option, or any shares issued upon exercise of the Put
Option not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933
Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the 1933
Act.

 

(d)          The
Selling Shareholder is outside the United States when receiving and executing this Acquisition Agreement and is acquiring the
AHFL Shares and Put Option as principal for his own account, for investment purposes only, and not with a view to, or for, resale,
distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest
in such AHFL Shares.

 

(e)          The
Selling Shareholder understands and agrees that offers and sales of any of the AHFL Shares, the Put Option, or any shares issued
pursuant to exercise of the Put Option, prior to the expiration of the period specified in Regulation S (such period hereinafter
referred to as the “Distribution Compliance Period”) shall only be made in compliance with the safe harbor provisions
set forth in Regulation S, pursuant to the registration provisions of the 1933 Act or an exemption therefrom, and that all offers
and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the 1933
Act or an exemption therefrom and in each case only in accordance with applicable securities laws.

 

(f)          The
statutory and regulatory basis for the exemption claimed for the offer and sale of the AHFL Shares, the CUII Shares or Additional
CUII Shares, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme
to evade the registration provisions of the 1933 Act or any applicable state securities laws.

 

    	 

    	 

    

 

(g)          The
Selling Shareholder, for his own sake, represents that he is not a US person as defined in Section 902 of the Securities Act,
and is not acquiring the AHFL Shares, the Put Option or any shares issued pursuant to an exercise of the Put Option for the account
or benefit of any U.S. Person.

 

(h)          The
Selling Shareholder, for his own sake, acknowledges that he has had access to all materials, books, records, documents, and information
relating to AHFL and CUII that he desires and has been able to verify the accuracy of, and to supplement, the information contained
therein.

 

(i)          The
Selling Shareholder, for his own sake, acknowledges that he has had an opportunity to ask questions of, and receive satisfactory
answers from, representatives of AHFL and CUII concerning the AHFL Shares, the Put Option and any shares issuable upon exercise
of the Put Option and all material aspects of AHFL and its current and proposed business, and any request for such information
has been fully complied with to the extent AHFL possesses such information or can acquire it without unreasonable effort or expense.

 

(j)          The
Selling Shareholder, for his own sake, represents that he is an investor who has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of an investment in the AHFL Shares, the Put Option or any
shares issued pursuant to an exercise of the Put Option based upon (i) the information about AHFL and CUII available publicly
through the SEC's website, (ii) such Selling Shareholder's personal knowledge of the business and affairs of AHFL and CUII, (iii)
the records, files, and plans of AHFL and CUII to which the Selling Shareholder has had full access, (iv) such additional information
as the Selling Shareholder, may have requested and have received from AHFL or CUII, and (v) the independent inquiries and investigations
undertaken by the Selling Shareholder.

 

(k)          The
Selling Shareholder, for his own sake, acknowledges that no person has given any information or made any representation or warranty
not contained herein. The Selling Shareholder understands and agrees that any information or representation not contained herein
must not, and will not, be relied upon and that nothing contained herein should be construed as legal or tax advice to the Selling
Shareholder.

 

(l)          The
Selling Shareholder has not acquired the AHFL Shares, the Put Option or any shares issued pursuant to an exercise of the Put Option
as a result of, and will not himself engage in, any “directed selling efforts” (as defined in Regulation S under the
1933 Act) in the United States in respect of any of the AHFL Shares, the Put Option or any shares issued pursuant to an exercise
of the Put Option which would include any activities undertaken for the purpose of, or that could reasonably be expected to have
the effect of, conditioning the market in the United States for the resale of any of the AHFL Shares, the Put Option or any shares
issued pursuant to an exercise of the Put Option; provided, however, that the Selling Shareholder may sell or otherwise dispose
of any of the AHFL Shares, the Put Option or any shares issued pursuant to an exercise of the Put Option pursuant to registration
of any of such Shares pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration
requirements and as otherwise provided herein.

 

    	 

    	 

    

 

(m)          The
Selling Shareholder, for his own sake, acknowledges that no person has made any direct or indirect representation or warranty
of any kind to the Selling Shareholder with respect to the economic return which may accrue to the Selling Shareholder. The Selling
Shareholder has consulted with his own advisors with respect to an investment in the AHFL Shares, the Put Option or any shares
issued pursuant to an exercise of the Put Option as applicable.

 

(n)          The
Selling Shareholder is not aware of any advertisement of any of the AHFL Shares, the Put Option or any shares issued pursuant
to an exercise of the Put Option and is not acquiring the AHFL Shares, the Put Option or any shares issued pursuant to an exercise
of the Put Option as a result of any form of general solicitation or general advertising including advertisements, articles, notices
or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar
or meeting whose attendees have been invited by general solicitation or general advertising.

 

(o)          The
Selling Shareholder understands and agrees not to engage in any hedging transactions involving any of the AHFL Shares, the Put
Option or any shares issued pursuant to an exercise of the Put Option unless such transactions are in compliance with the provisions
of the 1933 Act and in each case only in accordance with applicable state securities laws.

 

4.           REPRESENTATIONS
AND WARRANTIES OF AHFL

 

As of the date
hereof and as of the Closing Date, AHFL represents and warrants to the Selling Shareholder and acknowledges that the Selling Shareholder
is relying upon such representations and warranties in connection with the execution, delivery and performance of this Agreement,
notwithstanding any investigation made by or on behalf of the Selling Shareholder, as of the date hereof and the Closing (unless
otherwise specified) hereunder, as follows:

 

4.1          Organization
and Good Standing. AHFL is duly incorporated, organized, validly existing and in good standing under the laws of the British
Virgin Islands and has all requisite corporate power and authority to own, lease and to carry on its business as now being conducted.
AHFL is qualified to do business and is in good standing as a foreign corporation in each of the jurisdictions in which it owns
property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a
material adverse effect on the businesses, operations, or financial condition of AHFL.

 

4.2          Authority.
AHFL has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated
by this Agreement to be signed by AHFL and to perform its obligations hereunder and to consummate the transactions contemplated
hereby. The consummation by AHFL of the transactions contemplated hereby have been duly authorized by its board of directors.
This Agreement has been duly executed and delivered by AHFL and this Agreement is valid and binding obligations of AHFL enforceable
in accordance with their respective terms, except:

 

(a)          as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement
of creditors' rights generally; and

 

    	 

    	 

    

 

(b)          as
limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

4.3         Capitalization
of AHFL.

 

The
entire authorized capital stock and other equity securities of AHFL consist of 15,000,000 shares of common stock. As of the date
of this Agreement, there are 13,593,015 shares of AHFL common stock issued and outstanding. All of the issued and outstanding
shares of AHFL common stock have been duly authorized, are validly issued, were not issued in violation of any pre-emptive rights
and are fully paid and non-assessable, are not subject to pre-emptive rights and were issued in full compliance with the laws
of the British Virgin Islands and its Constitution and Articles of Association. There are no outstanding options, warrants, subscriptions,
conversion rights, or other rights, agreements, or commitments obligating AHFL to issue any additional common shares of AHFL common
stock, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from AHFL
any common shares of AHFL common stock. There are no agreements or arrangements purporting to restrict the transfer of AHFL common
stock and no voting agreements, shareholders' agreements, voting trusts, or other agreements or arrangements restricting or affecting
the voting of AHFL common stock.

 

4.4          Corporate
Records of AHFL. The corporate records of AHFL, as required to be maintained by it pursuant to the laws of the British Virgin
Islands , are accurate, complete and current in all material respects, and the minute book of AHFL is, in all material respects,
correct and contains all material records required by the law of the British Virgin Islands in regards to all proceedings, consents,
actions and meetings of the shareholders and the board of directors of AHFL.

 

4.5          Non-Contravention.
Neither the execution, delivery nor performance of this Agreement, nor the consummation of the Transaction, will:

 

(a)          conflict
with, result in a violation of, cause a default under (with or without notice, lapse of time or both) or give rise to a right
of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under,
or result in the creation of any lien, security interest, charge or encumbrance upon any of the material properties or assets
of AHFL under any term, condition or provision of any loan or credit agreement, note, debenture, bond, mortgage, indenture, lease
or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable
to AHFL or any of its material property or assets;

 

(b)          violate
any provision of the applicable incorporation or charter documents of AHFL; or

 

(c)          violate
any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable
to AHFL or any of its material property or assets.

 

    	 

    	 

    

 

4.6           Validity
of AHFL Common Stock Issuable upon the Transaction. The AHFL Shares to be issued to the Selling Shareholder, as applicable,
upon consummation of the Transaction in accordance with this Agreement will, upon issuance, have been duly and validly authorized
and, when so issued in accordance with the terms of this Agreement, will be duly and validly issued, fully paid and non-assessable.

 

4.7           Actions
and Proceedings. To the Knowledge of AHFL, there is no claim, charge, arbitration, grievance, action, suit, investigation
or proceeding by or before any court, arbiter, administrative agency or other governmental authority now pending or, to the Knowledge
of AHFL, threatened against AHFL which involves any of the business, or the properties or assets of AHFL that, if adversely resolved
or determined, would have a material adverse effect on the business, operations, assets, properties, prospects or conditions of
AHFL taken as a whole (a "AHFL Material Adverse Effect").

 

4.8           Filings,
Consents and Approvals. Except for filings and other disclosures that are required to be filed with the SEC, no filing or
registration with, no notice to and no permit, authorization, consent, or approval of any public or governmental body or authority
or other person or entity is necessary for the consummation by AHFL of the Transaction contemplated by this Agreement.

 

4.9           SEC
Filings. True and complete copies of each report, schedule, registration statement and proxy statement filed by China United
Insurance Services, Inc. (“CUII”), the parent company holding 100% of AFHL, with the SEC (collectively, and as such
documents have since the time of their filing been amended, the " CUII SEC Documents") are available through
the SEC's website, located at http://www.sec.gov.

 

4.10         Subsidiaries.
AHFL does not have any subsidiaries or agreements of any nature to acquire any subsidiary or to acquire or lease any other business
operations, except as disclosed in the AHFL SEC Documents.

 

4.11         Material
Contracts and Transactions. Other than as expressly contemplated by this Agreement, there are no material contracts, agreements,
licenses, permits, arrangements, commitments, instruments, understandings or contracts, whether written or oral, express or implied,
contingent, fixed or otherwise, to which AHFL is a party except as disclosed in writing to the Selling Shareholder or as disclosed
in the CUII SEC Documents.

 

4.12         No
Brokers. AHFL has not incurred any obligation or liability to any party for any brokerage fees, agent's commissions, or finder's
fees in connection with the Transaction contemplated by this Agreement.

 

5.             CLOSING
CONDITIONS

 

5.1           Conditions
Precedent to Closing by AHFL and CUII. The obligation of AHFL and CUII to consummate the Transaction is subject to the satisfaction
or written waiver of the conditions set forth below on or before a date mutually agreed upon by the parties hereto in writing
and in accordance with the notice provisions set forth in Section 10.5. The Closing of the Transaction contemplated by this Agreement
will be deemed to mean a waiver of all conditions to Closing. These conditions precedent are for the benefit of AHFL and CUII
and may be waived by AHFL and CUII in their sole discretion:

 

    	 

    	 

    

 

(a)          Representations
and Warranties. The representations and warranties of the Selling Shareholder set forth in this Agreement shall be true, correct
and complete in all material respects as of the Closing Date, as though made on and as of the Closing Date and the Selling Shareholder
will have delivered to AHFL and CUII a certificate executed by an executive officer of GHFL and dated as of the Closing Date,
to the effect that the representations and warranties made by the Selling Shareholder in this Agreement are true and correct.

 

(b)          Performance.
All of the covenants and obligations that the Selling Shareholder are required to perform or to comply with pursuant to this Agreement
on or prior to the Closing must have been performed and complied with in all material respects.

 

(c)          Transaction
Documents. This Agreement, GHFL Financial Statements and all other documents necessary or reasonably required to consummate
the Transaction, all in form and substance reasonably satisfactory to AHFL and CUII, will have been executed and delivered to
AHFL and CUII.

 

(d)          Third
Party Consents. AHFL will have received duly executed copies of all third party consents, permits, authorizations and approvals
of any public, regulatory (including the SEC) or governmental body or authority or person or entity required to consummate the
transactions contemplated by this Agreement, in the form and substance reasonably satisfactory to AHFL and CUII, if any.

 

(e)          No
Material Adverse Change. No Genius Material Adverse Effect will have occurred since the date of this Agreement.

 

(f)          No
Action. No suit, action, or proceeding will be pending or threatened which would:

 

(i)          prevent
the consummation of any of the transactions contemplated by this Agreement; or

 

(ii)         cause
the Transaction to be rescinded following consummation.

 

(g)          Due
Diligence. AHFL, CUII and its attorneys will be reasonably satisfied with their due diligence investigation of GHFL that is
reasonable and customary in a transaction of a similar nature to that contemplated by the Transaction, including:

 

(i)          materials,
documents and information in the possession and control of the Group Companies and the Selling Shareholder which are reasonably
germane to the Transaction;

 

(ii)         a
physical inspection of the assets of the Group Companies by AHFL, CUII or its representatives; and

 

(iii)        title
to the material assets of the Group Companies.

 

5.2         Conditions
Precedent to Closing by the Selling Shareholder. The obligation of the Selling Shareholder to consummate the Transaction is
subject to the satisfaction or written waiver of the conditions set forth below by a date mutually agreed upon by the parties
hereto in writing and in accordance with the notice provisions set forth in Section 10.5. The Closing of the Transaction will
be deemed to mean a waiver of all conditions to Closing. These conditions precedent are for the benefit of the Selling Shareholder
and may be waived by the Selling Shareholder in his discretion:

 

    	 

    	 

    

 

(a)          Representations
and Warranties. The representations and warranties of AHFL set forth in this Agreement shall be true, correct and complete
in all material respects as of the Closing Date, as though made on and as of the Closing Date and AHFL will have delivered to
the Selling Shareholder or its designated person a certificate executed by an executive officer and dated the Closing Date, to
the effect that the representations and warranties made by AHFL in this Agreement are true and correct.

 

(b)          Performance.
All of the covenants and obligations that AHFL is required to perform or to comply with pursuant to this Agreement on or prior
to the Closing must have been performed and complied with in all material respects. AHFL must have delivered each of the documents
required to be delivered by it pursuant to this Agreement.

 

(c)          Transaction
Documents. This Agreement and all other documents necessary or reasonably required to consummate the Transaction, all in form
and substance reasonably satisfactory to the Selling Shareholder, will have been executed and delivered by AHFL.

 

(d)          Third
Party Consents. The Selling Shareholder will have received duly executed copies of all third party consents, permits, authorizations
and approvals of any public, regulatory (including the SEC) or governmental body or authority or person or entity required to
consummate the transactions contemplated by this Agreement, in the form and substance reasonably satisfactory to the Selling Shareholder.

 

(e)          No
Material Adverse Change. No AHFL Material Adverse Effect will have occurred since the date of this Agreement.

 

(f)          No
Action. No suit, action, or proceeding will be pending or threatened before any governmental or regulatory authority wherein
an unfavorable judgment, order, decree, stipulation, injunction or charge would:

 

(i)          prevent
the consummation of any of the transactions contemplated by this Agreement; or

 

(ii)         cause
the Transaction to be rescinded following consummation.

 

6.            ADDITIONAL
COVENANTS OF THE PARTIES

 

6.1           Confidentiality.
All information regarding the business of the Group Companies including, without limitation, financial information that the Selling
Shareholder provide to AHFL and CUII during AHFL's and CUII’s due diligence investigation of the Group Companies will be
kept in strict confidence by AHFL and CUII and will not be used (except in connection with due diligence), dealt with, exploited
or commercialized by AHFL and CUII or disclosed to any third party (other than AHFL's and CUII’s professional accounting
and legal advisors) without the prior written consent of the Selling Shareholder. If the Transaction contemplated by this Agreement
does not proceed for any reason, then upon receipt of a written request from the Selling Shareholder, AHFL and CUII will immediately
return to the Selling Shareholder (or as directed by the Selling Shareholder) any information received regarding the Group Companies'
business. Likewise, all information regarding the business of AHFL and CUII including, without limitation, financial information
that AHFL and CUII provides to the Selling Shareholder during its due diligence investigation of AHFL and CUII will be kept in
strict confidence by the Selling Shareholder and will not be used (except in connection with due diligence), dealt with, exploited
or commercialized by the Selling Shareholder or disclosed to any third party (other than the Selling Shareholder’ professional
accounting and legal advisors) without AHFL's and CUII’s prior written consent. If the Transaction contemplated by this
Agreement does not proceed for any reason, then upon receipt of a written request from AHFL and CUII, the Selling Shareholder
will immediately return to AHFL and CUII (or as directed by AHFL and CUII) any information received regarding AHFL's and CUII’s
business.

 

    	 

    	 

    

 

6.2           Exclusivity.
Until such time, if any, as this Agreement is terminated pursuant to the terms set forth herein, the Group Companies, AHFL and
CUII will not, directly or indirectly, solicit, initiate, entertain or accept any inquiries or proposals from, discuss or negotiate
with, provide any non-public information to, or consider the merits of any unsolicited inquiries or proposals from, any person
or entity relating to any transaction involving the sale of the business or assets (other than in the ordinary course of business),
or any of the capital stock of any Group Company, AHFL, or CUII, as applicable, or any merger, acquisition, consolidation, business
combination, orsimilar transaction other than as contemplated by this Agreement.

 

7.            CLOSING

 

7.1           Closing.
The Closing shall take place on the Closing Date at the office of AHFL or at such other location as agreed to by the parties.
Notwithstanding the location of the Closing, each party agrees that the Closing may be completed by the exchange of undertakings
between the respective legal counsel for the Selling Shareholder and AHFL, provided such undertakings are satisfactory to each
party's respective legal counsel. 

 

7.2           Closing
Deliveries of the Selling Shareholder. At Closing, the Selling Shareholder will deliver or cause to be delivered the following,
fully executed and in the form and substance reasonably satisfactory to AHFL and CUII:

 

(a)          copies
of all resolutions and/or consent actions adopted by or on behalf of the board of directors of GHFL evidencing approval of this
Agreement and the Transaction;

 

(b)          a
certificate of an executive officer of GHFL, dated as of Closing, certifying that:

 

(i)          each
covenant and obligation of the Selling Shareholder has been complied with; and

 

(ii)         each
representation, warranty and covenant of the Selling Shareholder is true and correct at the Closing as if made on and as of the
Closing; and

 

(c)          the
GHFL Financial Statements and any other necessary documents, as required to be provided to AHFL under this Agreement.

 

7.3           Closing
Deliveries of AHFL. At Closing, AHFL will deliver or cause to be delivered the following, fully executed and in the form and
substance reasonably satisfactory to the Selling Shareholder:

 

    	 

    	 

    

 

(a)          copies
of all resolutions and/or consent actions adopted by or on behalf of the board of directors of AHFL and CUII evidencing approval
of this Agreement and the Transaction;

 

(b)          a
certificate of an executive officer of AHFL, dated as of Closing, certifying that:

 

(i)          each
covenant and obligation of AHFL has been complied with; and

 

(ii)         each
representation, warranty and covenant of AHFL is true and correct at the Closing as if made on and as of the Closing; and

 

7.4           Post-Closing
Deliveries. Within 30 Business Days after the Closing Date, (i) the Selling Shareholder will deliver or cause to be delivered
the following, fully executed and in the form and substance reasonably satisfactory to AHFL: (a) share certificate representing
704,333 shares of common stock of GHFL held by the Selling Shareholder have been transferred to AHFL pursuant to this Agreement
and (b) registrar of members of GHFL updated to reflect AHFL being the sole shareholder of GHFL; and (ii) AHFL will deliver or
cause to be delivered the share certificates representing the AHFL Shares, fully executed and in the form and substance reasonably
satisfactory to the Selling Shareholder.

 

8.            TERMINATION

 

8.1           Termination.
This Agreement may be terminated at any time prior to the Closing Date contemplated hereby by:

 

(a)          mutual
agreement of AHFL, CUII and the Selling Shareholder;

 

(b)          AHFL
or CUII, if there has been a material breach by the Selling Shareholder of any material representation, warranty, covenant or
agreement set forth in this Agreement on the part of the Selling Shareholder that is not cured, to the reasonable satisfaction
of AHFL and CUII, within ten business days after notice of such breach is given by AHFL (except that no cure period will be provided
for a breach by the Selling Shareholder that by its nature cannot be cured);

 

(c)          the
Selling Shareholder, if there has been a material breach by AHFL of any material representation, warranty, covenant or agreement
set forth in this Agreement on the part of AHFL that is not cured, to the reasonable satisfaction of the Selling Shareholder,
within ten business days after notice of such breach is given by the Selling Shareholder (except that no cure period will be provided
for a breach by AHFL that by its nature cannot be cured);

 

(d)          AHFL,
CUII or the Selling Shareholder, if any permanent injunction or other order of a governmental entity of competent authority preventing
the consummation of the Transaction contemplated by this Agreement has become final and non-appealable.

 

8.2           Effect
of Termination. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement will be of no
further force or effect, provided, however, that no termination of this Agreement will relieve any party of liability for any
breaches of this Agreement that are based on a wrongful refusal or failure to perform any obligations or its duty of confidentiality
set forth in Section 6.1.

 

    	 

    	 

    

 

9.            INDEMNIFICATION,
REMEDIES, SURVIVAL

 

9.1           Certain
Definitions. For the purposes of this Article 9, the terms "Loss" and "Losses" mean any
and all demands, claims, actions or causes of action, assessments, losses, damages, Liabilities, costs, and expenses, including
without limitation, interest, penalties, fines and reasonable attorneys, accountants and other professional fees and expenses,
but excluding any indirect, consequential or punitive damages suffered by AHFL on one side or the Selling Shareholder on the other,
including damages for lost profits or lost business opportunities.

 

9.2           Agreement
of the Selling Shareholder to Indemnify. The Selling Shareholder, severally but not jointly, will indemnify, defend, and hold
harmless, to the full extent of the law, AHFL, CUII and their shareholders from, against, for, and in respect of any and all Losses
asserted against, relating to, imposed upon, or incurred by AHFL or CUII and their shareholders by reason of, resulting from,
based upon or arising out of:

 

(a)          the
breach by the Selling Shareholder of any representation or warranty of the Selling Shareholder contained in or made pursuant to
this Agreement, or any certificate or other instrument delivered pursuant to this Agreement; and

 

(b)          the
breach by the Selling Shareholder of any covenant or agreement of the Selling Shareholder made in or pursuant to this Agreement
or any certificate or other instrument delivered pursuant to this Agreement.

 

9.3           Agreement
of AHFL to Indemnify. AHFL will indemnify, defend, and hold harmless, to the full extent of the law, the Selling Shareholder
from, against, for, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by the Selling
Shareholder by reason of, resulting from, based upon or arising out of:

 

(a)          the
breach by AHFL of any representation or warranty of AHFL contained in or made pursuant to this Agreement, any AHFL Document or
any certificate or other instrument delivered pursuant to this Agreement; and

 

(b)          the
breach by AHFL of any covenant or agreement of AHFL made in or pursuant to this Agreement, any AHFL Document or any certificate
or other instrument delivered pursuant to this Agreement.

 

9.4           Indemnification
Limitation. Notwithstanding anything to the contrary of this Agreement, the indemnification obligation of, either AHFL to the
Selling Shareholder or the Selling Shareholder to the AHFL and CUII, shall not exceed the respective consideration received by
such party pursuant to this Agreement.

 

10.           MISCELLANEOUS
PROVISIONS

 

10.1         Effectiveness
of Representations; Survival. Each party is entitled to rely on the representations, warranties and agreements of each of
the other parties and all such representations, warranties and agreements will be effective regardless of any investigation that
any party has undertaken or failed to undertake. Unless otherwise stated in this Agreement, the representations, warranties and
agreements set forth in this Agreement shall not survive the first anniversary of the Closing Date.

 

    	 

    	 

    

 

10.2         Amendment.
This Agreement may not be amended except by an instrument in writing signed by each of the parties.

 

10.3         Expenses.
Each of the parties shall bear all costs incurred in connection with the preparation, execution and performance of this Agreement
and the Transaction contemplated hereby, including all fees and expenses of their counsels, agents, representatives and accountants.

 

10.4         Entire
Agreement. This Agreement, the schedules attached hereto and the other documents in connection with this transaction contain
the entire agreement between the parties with respect to the subject matter hereof and supersede all prior arrangements and understandings,
both written and oral, expressed or implied, with respect thereto. Any preceding correspondence or offers are expressly superseded
and terminated by this Agreement.

 

10.5         Notices.
All notices and other communications required or permitted under to this Agreement must be in writing and will be deemed given
if sent by personal delivery, faxed with electronic confirmation of delivery, internationally-recognized express courier or registered
or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address
for a party as will be specified by like notice):

 

If
to the Selling Shareholder:

 

11F. No.
41, Ln. 188, Jungong Rd., Wenshan Dist.,, Taipei City 116, Taiwan 

Attention:
LI Chwan-Hau

Telephone:
02-2555-61130

Facsimile:
02-2555-8033

 

If to
AHFL:

 

7F., No.201,
Sec. 3, Nanjing E. Rd., Songshan Dist., Taipei City 105, Taiwan

 

Attention:
HUANG ZHENG XIONG

Telephone:
02-8712-6958

Facsimile:
02-8712-5338

 

If to
CUII:

 

7F., No.201,
Sec. 3, Nanjing E. Rd., Songshan Dist., Taipei City 105, Taiwan

 

Attention:
Wellmore Yu

Telephone:
02-8712-6958

Facsimile:
02-8712-5338

 

    	 

    	 

    

 

All such notices
and other communications will be deemed to have been received:

 

(a)          in
the case of personal delivery, on the date of such delivery;

 

(b)          in
the case of a fax, when the party sending such fax has received electronic confirmation of its delivery;

 

(c)          in
the case of delivery by internationally-recognized express courier, on the business day following dispatch; and

 

(d)          in
the case of mailing, on the fifth business day following mailing.

 

10.6         Headings.
The headings contained in this Agreement are for convenience purposes only and will not affect in any way the meaning or interpretation
of this Agreement.

 

10.7         Benefits.
This Agreement is and will only be construed as for the benefit of or enforceable by those persons party to this Agreement.

 

10.8         Assignment.
This Agreement may not be assigned (except by operation of law) by any party without the consent of the other parties.

 

10.9         Governing
Law. This Agreement will be governed by and construed in accordance with the laws of Taiwan applicable to contracts made and
to be performed therein, without giving effect to its conflict of laws provisions.

 

10.10        Gender.
All references to any party will be read with such changes in number and gender as the context or reference requires.

 

10.11        Counterparts.
This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will
become effective. When one or more counterparts have been signed by each of the parties and delivered to the other parties, it
being understood that all parties need not sign the same counterpart.

 

10.12        Fax/Email
Execution. This Agreement may be executed by delivery of executed signature pages by fax or via email and such fax/email execution
will be effective for all purposes.

 

10.13        Schedules
and Exhibits. The schedules and exhibits are attached to this Agreement and incorporated herein.

 

    	 

    	 

    

 

 

IN
WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

 

China United Insurance Service,
Inc.

	By:	/s/ Yi-Hsiao Mao	 
	Name:	Yi-Hsiao Mao	 
	Title:	Director	 

 

Action Holdings Financial Limited

 

	By:	/s/ Yi Hsiao Mao	 
	Name:	Yi-Hsiao Mao	 
	Title:	Director	 

 

    	 

    	 

    

 

IN
WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. 

 

	 	 	Selling Shareholder of GHFL
	 	 	 
	 	By:	/s/ Li Chwan-Hau
	 	 	 
	 	Name:	Li Chwan-Hau

 

    	 

    	 

    

 

Schedule
I           GROUP STRUCTURE

 

	PRIOR TO THE CLOSING	SUBSEQUENT TO THE CLOSINGExhibit 4.2

 

Execution Copy

 

SOLAREDGE TECHNOLOGIES, INC.

 

FIFTH AMENDED AND RESTATED
 INVESTORS’ RIGHTS AGREEMENT

 

Dated: September 17, 2014

 

 

	
1.
    	
REGISTRATION RIGHTS 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.1
    	
Definitions
    	
1
    
	
 
    	
1.2
    	
Request for Registration 
    	
2
    
	
 
    	
1.3
    	
Company Registration 
    	
4
    
	
 
    	
1.4
    	
Obligations of the Company 
    	
4
    
	
 
    	
1.5
    	
Furnish Information 
    	
6
    
	
 
    	
1.6
    	
Expenses of Demand Registration 
    	
6
    
	
 
    	
1.7
    	
Expenses of Company Registration 
    	
6
    
	
 
    	
1.8
    	
Underwriting Requirements 
    	
7
    
	
 
    	
1.9
    	
Delay of Registration 
    	
7
    
	
 
    	
1.10
    	
Indemnification 
    	
7
    
	
 
    	
1.11
    	
Reports Under the 1934 Act 
    	
10
    
	
 
    	
1.12
    	
Form S-3 Registration 
    	
10
    
	
 
    	
1.13
    	
Assignment of Registration Rights 
    	
11
    
	
 
    	
1.14
    	
Limitations on Subsequent Registration Rights 
    	
12
    
	
 
    	
1.15
    	
“Market Stand-Off” Agreement 
    	
12
    
	
 
    	
1.16
    	
Termination of Registration Rights 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
COVENANTS OF THE COMPANY 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Delivery of Financial Statements 
    	
13
    
	
 
    	
2.2
    	
Inspection Rights 
    	
14
    
	
 
    	
2.3
    	
Confidentiality 
    	
14
    
	
 
    	
2.4
    	
Termination of Information Covenants 
    	
14
    
	
 
    	
2.5
    	
Right of First Offer 
    	
14
    
	
 
    	
2.6
    	
Common Stock and Stock Option Vesting 
    	
15
    
	
 
    	
2.7
    	
Insurance 
    	
16
    
	
 
    	
2.8
    	
Management of Subsidiaries 
    	
16
    
	
 
    	
2.9
    	
Foreign Corrupt Practices Act 
    	
16
    
	
 
    	
2.10
    	
Right to Conduct Activities 
    	
17
    
	
 
    	
2.11
    	
Termination 
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
MISCELLANEOUS 
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.1
    	
Successors and Assigns
    	
17
    
	
 
    	
3.2
    	
Governing Law 
    	
17
    
	
 
    	
3.3
    	
Counterparts 
    	
17
    
	
 
    	
3.4
    	
Titles and Subtitles 
    	
17
    
	
 
    	
3.5
    	
Notices 
    	
17
    
	
 
    	
3.6
    	
Expenses
    	
18
    
	
 
    	
3.7
    	
Amendments and Waivers 
    	
18
    
	
 
    	
3.8
    	
Severability 
    	
18
    
	
 
    	
3.9
    	
Delays or Omissions 
    	
18
    
	
 
    	
3.10
    	
Aggregation of Stock 
    	
18
    
	
 
    	
3.11
    	
Entire Agreement 
    	
18
    

 

 

SOLAREDGE TECHNOLOGIES, INC.
 FIFTH AMENDED AND RESTATED
 INVESTORS’ RIGHTS AGREEMENT

 

THIS FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (the “Agreement”) is made as of the 17th day of September, 2014, by and among SolarEdge Technologies, Inc., a Delaware corporation (the “Company”), the Founders (as defined below) and the investors listed on Exhibit A hereto (the “Investors”).

 

RECITALS

 

WHEREAS, the Company, the Founders and certain of the Investors are parties to that certain Fourth Amended and Restated Investors’ Rights Agreement dated as of October 18, 2011 (the “Prior Agreement”), which provides that such Prior Agreement may be amended, and the observance of any provision thereof may be waived, with the written consent of the Company and the holders of a majority of the Registrable Securities then outstanding (as defined therein); and

 

WHEREAS, the Company, the Founders and certain of the Investors, constituting such majority of the Registrable Securities, desire to amend and restate the Prior Agreement in its entirety with this Agreement;

 

WHEREAS, the Company, NWC SolarEdge Holdings, LLC (“NewWorld”), and DEP SE, L.P. are parties to that certain Series E Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”); and

 

WHEREAS, in order to induce the Company to enter into the Purchase Agreement and to induce certain of the Investors to purchase shares of Series E Preferred Stock of the Company pursuant to the Purchase Agreement, the Investors, the Founders and the Company hereby agree that this Agreement shall govern the rights of the Investors and the Founders to cause the Company to register shares of Common Stock issued or issuable to the Investors and the Founders and certain other matters as set forth herein.

 

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 Section 1:

 

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

 

(b)                                 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.

 

 

(c)                                  The term “Founders” means Guy Sella, Lior Handelsman, Yoav Galin, Meir Adest and Amir Fishelov.

 

(d)                                 The term “Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.13 hereof.

 

(e)                                  The term “1934 Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(f)                                   The term “Common Stock” shall mean outstanding shares of the Company’s common stock.

 

(g)                                  “Person” means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

(h)                                 The term “Preferred Stock” shall mean outstanding shares of the Company’s Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series D-1 Preferred Stock, Series D-2 Preferred Stock Preferred Stock, Series D-3 Preferred Stock and Series E Preferred Stock.

 

(i)                                     The term “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.

 

(j)                                    The term “Registrable Securities” means: (i) any Common Stock issuable or issued upon conversion of the Preferred Stock of the Company held by the Investors or their permitted assigns; (ii) any Common Stock held by the Founders as of the date of this Agreement; (iii) any Common Stock held by ORR Partners I., L.P. and its affiliates (“ORR”) as of the date of this Agreement; (iv) any Common Stock that any holder of Preferred Stock may hereinafter purchase pursuant to its Right of First Offer, Right of First Refusal or otherwise; and (v) 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, such Preferred Stock or Common Stock referenced in (i), (ii), (iii) and (iv) above, excluding, however, any Registrable Securities sold by a person in a transaction in which such person’s rights under this Section 1 are not assigned.

 

(k)                                 The number of shares of “Registrable Securities then outstanding” shall mean the number of shares of Common Stock that are Registrable Securities and (i) are then issued and outstanding or (ii) are then issuable pursuant to the exercise or conversion of then outstanding and then exercisable options, warrants or convertible securities.

 

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

 

 

1.2                               Request for Registration.

 

(a)                                 If the Company shall receive at any time subsequent to the earlier of: (i) September 1, 2016 and (ii) six (6) months following the Company’s first firm commitment underwritten public offering of its shares of Common Stock, a written request from the Holders of not less than thirty percent (30%) of the Registrable Securities then outstanding, that the Company file a registration statement under the Act covering the registration of Registrable Securities having an aggregate offering price to the public of at least Ten Million Dollars ($10,000,000), then the Company shall:

 

(i)                                     within twenty (20) days of the receipt thereof, give written notice of such request to all Holders; and

 

(ii)                                  use its 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, subject to the limitations of subsection 1.2(b).

 

(b)                                 If the Holders initiating the registration request hereunder (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 subsection 1.2(a) and the Company shall include such information in the written notice referred to in subsection 1.2(a)(i). The underwriter will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Initiating Holders. In such event, the right of any Holder to include such Holder’s 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 (together with the Company as provided in subsection 1.4(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Company and the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Company shall so advise all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each Holder; provided, however, that no Registrable Securities of a Founder or Common Stock of ORR shall be included if any Registrable Securities of an Investor are excluded, and provided further that the number of shares of Registrable Securities held by Holders to be included in such underwriting shall not be reduced unless all securities other than Registrable Securities are first entirely excluded from the underwriting.

 

(c)                                  Notwithstanding the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2, a certificate signed by the Chief Executive Officer of the Company 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 stockholders for such registration statement to be filed, the Company shall have the right to defer taking action with respect to such filing for a period not to exceed ninety (90) days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this

 

 

right more than once in any twelve-month period and provided further, that the Company shall not register any securities for the account of itself or any other stockholder during such ninety (90) 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).

 

(d)                                 In addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this Section 1.2:

 

(i)                                     After the Company has effected two (2) registrations pursuant to this Section 1.2 and such registrations have been declared or ordered effective;

 

(ii)                                  During the period starting with the date ninety (90) days prior to the Company’s good faith estimate of the date of filing of, and ending on a date one hundred and eighty (180) days after the effective date of a registration subject to Section 1.3 hereof; provided that the Company is actively employing in good faith reasonable efforts to cause such registration statement to become effective and the Company delivers notice of such intent to the Initiating Holders within thirty (30) days of the registration request; or

 

(iii)                               If the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 1.12 below.

 

1.3                               Company Registration. If (but without any obligation to do so) the Company proposes to register for its own account any of its capital stock or other securities under the Act in connection with the public offering of such securities solely for cash (other than a registration relating solely to the sale of securities to participants in a Company stock plan, 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 or a SEC Rule 145 transaction), 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 3.5, the Company shall, subject to the provisions of Section 1.8, use its commercially reasonable efforts to cause to be registered under the Act all of the Registrable Securities that each such Holder has requested to be registered.

 

1.4                               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 its best 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 ninety (90) days.

 

(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)                                  Promptly notify the Holders of the effectiveness of such registration statement and furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus and any supplement to the prospectus, in conformity with the requirements of the Act, and such other documents as they may reasonably request to facilitate the disposition of Registrable Securities owned by them.

 

(d)                                 Following the effective date of such registration statement, notify the Holders of any request by the SEC that the Company amend or supplement such registration statement, or the associated prospectus.

 

(e)                                  Use its best 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 unless the Company is already qualified to do business or subject to service of process in that jurisdiction.

 

(f)                                   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. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 

(g)                                  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 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. The Company will use reasonable efforts to amend or supplement such prospectus in order to cause such prospectus not to include any untrue statement of a material fact or omit 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.

 

(h)                                 Cause all such Registrable Securities registered hereunder to be listed on each national securities exchange or trading system on which similar securities issued by the Company are then listed.

 

 

(i)                                             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.

 

(j)                                            Furnish, at the request of Holders of a majority of the Registrable Securities 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, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (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, if any, and to the Holders requesting registration of Registrable Securities and (ii) a “cold comfort” letter from the independent auditors of the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering.

 

(k)                                         Make generally available to its security holders, and deliver to each Holder participating in the registration statement, an earnings statement of the Company that will satisfy the provisions of Section 11(a) of the Act covering a period of 12 months beginning after the effective date of such registration statement as soon as reasonably practicable after the termination of such 12-month period.

 

1.5                               Furnish Information. 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 required to effect the registration of such Holder’s Registrable Securities.

 

1.6                               Expenses of Demand Registration. All expenses (other than underwriting discounts and commissions and stock transfer taxes) incurred in connection with registrations, filings or qualifications pursuant to Section 1.2, 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 expenses of one special counsel for the selling stockholders (not to exceed Thirty-Five Thousand U.S. Dollars (U.S. $35,000) per registration) shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 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), unless 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 Section 1.2.

 

 

1.7                               Expenses of Company Registration. The Company shall bear and pay all expenses incurred in connection with any registration, filing or qualification of Registrable Securities with respect to the registrations pursuant to Section 1.3 for each Holder (which right may be assigned as provided in Section 1.13), including (without limitation) all registration, filings and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and expenses of one special counsel for the selling stockholders (not to exceed Thirty-Five Thousand U.S. Dollars (U.S. $35,000) per registration) but excluding underwriting discounts and commissions and stock transfer taxes.

 

1.8                               Underwriting Requirements. If a registration statement for which the Company gives notice pursuant to Section 1.3 is for an underwritten offering, then the Company shall so advise the Holders of Registrable Securities. In such event, the right of any Holder’s Registrable Securities to be included in a registration pursuant to Section 1.3 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriter(s) selected for such underwriting. Notwithstanding any other provision of this Agreement, if the managing underwriter(s) determine(s) in good faith that marketing factors require a limitation of the number of shares to be underwritten, then the managing underwriter(s) may exclude shares (including Registrable Securities) from the registration and the underwriting, and the number of shares that may be included in the registration and the underwriting shall be allocated first, to the Company, and second, to each of the Holders requesting inclusion of their Registrable Securities in such registration statement on a pro rata basis based upon the total number of Registrable Securities then held by each such Holder; provided, however, that no exclusion of such Holders’ Registrable Securities shall be made unless all other stockholders’ securities are first excluded and provided further that no Registrable Securities of a Founder or Common Stock of ORR shall be included if any Registrable Securities of an Investor are excluded, and provided further that in any underwriting that is not in connection with the initial public offering of the Company’s Common Stock the number of shares of Registrable Securities included in such offering shall not be reduced below twenty-five percent (25%) of the total number of securities included in such offering. If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter, delivered at least twenty (20) business days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. For any Holder that is a venture capital fund, partnership or corporation, the affiliated venture capital funds, partners, retired partners and stockholders of such Holder, or the estates and family members of any such partners, stockholders and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “Holder,” as defined in this sentence.

 

1.9                               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.

 

 

1.10                        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, members, managers, officers, directors, stockholders and affiliates of 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 or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions 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 or in any free writing prospectus, (ii) the omission or alleged omission to state therein 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 state securities law or any rule or regulation promulgated under the Act, the 1934 Act or any state securities law; and the Company will pay to each such Holder, underwriter, controlling person or other aforementioned person any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action 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 or controlling person.

 

(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, 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 or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions 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 pay any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this subsection 1.10(b), in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, further, that in no event shall any indemnity under

 

 

this subsection 1.10(b), together with any contribution under Subsection 1.10(d), exceed the net proceeds from the offering received by such Holder.

 

(c)                                            Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.10, 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, to the extent prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.10, but the omission so to 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 1.10.

 

(d)                                           If the indemnification provided for in this Section 1.10 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 therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute 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 of the indemnified party on the other 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 1.10(b), shall exceed the net proceeds from the offering received by such Holder. The relative fault of the indemnifying party and of 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 to state a material fact relates to information supplied 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.

 

(e)                                            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, however, that the failure of the underwriting agreement to provide for or address a matter provided for or addressed by the foregoing provisions shall not be a conflict and, in such event, the foregoing provisions shall control as to such matter.

 

 

(f)                                             The obligations of the Company and Holders under this Section 1.10 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise, and, with respect to liability arising from an offering to which this Section 1.10 would apply that is covered by a registration filed before termination of this Agreement, such termination.

 

1.11                        Reports Under the 1934 Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the Act 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 SEC Rule 144, at all times after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public;

 

(b)                                           take such action, including the voluntary registration of its Common Stock under Section 12 of the 1934 Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities;

 

(c)                                            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

 

(d)                                           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 SEC 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 filed under the 1934 Act by the Company, and (iii) such other information as may be reasonably requested in availing 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.

 

1.12                        Form S-3 Registration. If the Company shall receive from any Holders of the Registrable Securities 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 will:

 

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

 

(b)                                           use its 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 Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or 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 1.12: (i) if Form S-3 is not available for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of less than Two Million Dollars ($2,000,000); (iii) if the Company shall furnish to the Holders a certificate signed by the President of the Company 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 stockholders for such Form S-3 registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period not to exceed ninety (90) days after receipt of the request of the Holder or Holders under this Section 1.12; provided, however, that the Company shall not utilize this right more than once in any twelve month period and provided further, that the Company shall not register any securities for the account of itself or any other stockholder during such ninety (90) 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); (iv) if the Company has, within the twelve (12) month period preceding the date of such request, already effected one (1) registration pursuant to this Section 1.12; or (v) 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 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 1.12 and the Company shall include such information in the written notice referred to in Section 1.12(a). The provisions of Section 1.2(b) shall be applicable to such request (with the substitution of Section 1.12 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 Holders. All expenses incurred in connection with all registrations requested pursuant to Section 1.12, including (without limitation) all registration, filing, qualification, printers’ and accounting fees and the reasonable fees and disbursements of one special counsel for the selling stockholders (not to exceed Thirty-Five Thousand U.S. Dollars (U.S. $35,000) per registration), but excluding any underwriters’ discounts or commissions and stock transfer taxes, shall be borne by the Company. Registrations effected pursuant to this Section 1.12 shall not be counted as registrations effected pursuant to Sections 1.2 or 1.3.

 

1.13                          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 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 1.15 below; (c) the transfer involves a transfer of at least one million (1,000,000) shares of Registrable Securities (as adjusted for any stock dividends, combinations, splits or the like with respect to such shares) or all of the Registrable Securities held by such Holder if less; provided, however, that transfers or assignments to affiliated venture funds (including funds under common investment management), partners, limited partners, retired partners, stockholders, members and retired members, parents, children, spouses, trusts or affiliates of a Holder (“Permitted Transferees”) shall be without restriction as to the minimum number of shares to be transferred; and (d) 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.

 

1.14                        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 a majority of the Registrable Securities then outstanding, 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 such securities in any registration filed under Section 1.2, 1.3 or 1.12 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 holder’s securities will not reduce the amount of the Registrable Securities of the Holders that is included or (b) to make a demand registration.

 

1.15                        “Market Stand-Off” Agreement. Each Founder and each Investor hereby agrees that, during the period of duration specified by the Company and an underwriter of Common Stock or other securities of the Company, following the effective date of the registration statement of the Company filed under the Act in connection with the initial firm commitment underwritten public offering of its securities, it shall not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any securities of the Company during such period except Common Stock included in such registration; provided, however, that:

 

(a)                                           all then executive officers, directors, Founders and employee-holders of at least one percent (1%) of the outstanding capital stock of the Company enter into similar agreements; and

 

(b)                                           such market stand-off time period shall not exceed one hundred eighty (180) days; provided however that such time period may be extended to no more than two hundred thirteen (213) days following the effective date of such registration statement as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto.

 

 

Each Founder and each Investor hereby agrees that it will enter into the underwriter’s standard lock-up agreement consistent with the restrictions set forth in this Section 1.15. In addition, in order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each Investor and each Founder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period.

 

Notwithstanding the foregoing, the obligations described in this Section 1.15 shall not apply to a registration relating solely to employee benefit plans on Form S-l or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to an SEC Rule 145 transaction.

 

1.16                        Termination of Registration Rights. No Holder shall be entitled to exercise any right provided for in this Section 1 after the earlier of:

 

(a)                                 five (5) years following the consummation of the sale of securities pursuant to a registration statement filed by the Company under the Act in connection with the initial firm commitment underwritten offering of its securities to the general public (the “IPO”), or

 

(b)                                 as to any Holder, such time following the IPO as all Registrable Securities held by such Holder (together with any affiliates of such Holder with whom such Holder must aggregate its sales under SEC Rule 144) can be sold in any three (3) month period without registration under SEC Rule 144 where such Holder (together with all its affiliates) owns less than 1% of the Company’s Common Stock (calculated on an as-converted basis).

 

2.                                      Covenants of the Company.

 

2.1                               Delivery of Financial Statements. The Company shall deliver to each Investor, for so long as such Investor (together with its affiliates) holds at least 1,342,474 shares of Preferred Stock (as adjusted for stock splits, stock dividends, recapitalizations, reclassifications, combinations and the like) (a “Major Investor”):

 

(a)                                 as soon as practicable (but no later than seventy-five (75) days) after the end of each fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the Company as of the end of such year, a statement of stockholder’s equity as of the end of such year and a statement of cash flows for such fiscal year, such year-end financial reports to be in reasonable detail, prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) on an consolidated basis and audited and certified by independent public accountants of nationally recognized standing selected by the Company;

 

(b)                                 as soon as practicable (but no later than forty-five (45) days) after the end of each fiscal quarter of the Company, an unaudited income statement, balance sheet and statement of cash flows for and as of the end of such quarter, such unaudited financial statements to be in reasonable detail and on a consolidated basis;

 

 

(c)                                  as soon as practicable, but in any event at least thirty (30) days prior to the end of each fiscal year, an annual operating plan, prepared on a monthly basis, for the next fiscal year; and

 

(d)                                 with respect to the financial statements called for in subsections (b) and (c) of this Section 2.1, an instrument executed by the Chief Financial Officer or President of the Company certifying that to his or her knowledge, 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.

 

2.2                               Inspection Rights. The Company shall permit each Major Investor, at such Major Investor’s expense and upon reasonable notice from such Major Investor, to visit and inspect the Company’s properties, to examine its minutes, books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be requested by such Major Investor; provided, however, that the Company shall not be obligated under this Section 2.2 to provide information that it deems in good faith to be a trade secret or similar confidential or proprietary information.

 

2.3                               Confidentiality. Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Subsection 2.3 by such Investor), (b) is or has been independently developed or conceived by the Investor without use of the Company’s confidential information, or (c) is or has been made known or disclosed to the Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Subsection 2.3; (iii) to any  existing Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, provided that the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

 

2.4                               Termination of Information Covenants. The covenants set forth in Sections 2.1 and 2.2 shall terminate and be of no further force or effect (i) upon the consummation of an initial public offering of the Company’s Common Stock, (ii) upon a “Liquidation Event” (as such term is defined in the Company’s then existing Amended and Restated Certificate of Incorporation) or (iii) when the Company first becomes subject to the periodic reporting requirements of Sections 12(g) or 15(d) of the 1934 Act, whichever event shall first occur.

 

 

2.5                               Right of First Offer. Subject to the terms and conditions specified in this Section 2.5, the Company hereby grants to each Major Investor a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined). For purposes of this Section 2.5, a Major Investor includes any partners, members, affiliates and affiliated venture funds of such Major Investor.

 

Each time the Company proposes to offer any shares of, or securities convertible into or exercisable for any shares of, any class of its capital stock (the “Shares”), the Company shall first make an offering of such Shares to each Major Investor in accordance with the following provisions:

 

(a)                                 The Company shall deliver a notice (the “Notice”) to the Major Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price, terms and the identity of the third party offeror, if any, upon which it proposes to offer such Shares.

 

(b)                                 Within twenty (20) calendar days after giving of the Notice, each Major Investor may elect to purchase or obtain, 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 issued or issuable upon conversion of shares of Preferred Stock of the Company then held by such Major Investor, plus any other shares of capital stock of the Company then held by such Major Investor, bears to the total number of shares of Common Stock then outstanding (assuming full conversion of all outstanding convertible securities). The Company shall promptly, in writing, inform each Major Investor that elects to purchase all the shares available to it under this Section 2.5 (each, a “Fully-Exercising Investor”) of any other Major Investor’s failure to do likewise. During the ten (10)-day period commencing after receipt of such information, each Fully-Exercising Investor shall be entitled to obtain that portion of the Shares for which Major Investors were entitled to subscribe but which were not subscribed for by the Major Investors that is equal to the proportion that the number of shares of Common Stock issued upon conversion of shares of Preferred Stock of the Company then held, or issuable upon conversion of all Preferred Stock then held, by such Fully-Exercising Investor bears to the total number of shares of Common Stock then issued and held, or issuable upon conversion of the Preferred Stock then held, by all Fully-Exercising Investors who wish to purchase some of the unsubscribed shares.

 

(c)                                  The Company may, during the ninety (90) day period following the expiration of the periods provided in subsection 2.5(b) hereof, offer the remaining unsubscribed portion of such Shares to any person or persons at a price not less than, 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 ninety (90) 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 offer in this Section 2.5 shall not be applicable to shares of Common Stock exempted from the definition of “Additional Shares of

 

 

Common Stock” in the Company’s then-existing Amended and Restated Certificate of Incorporation.

 

(e)                                  The right of first offer set forth in this Section 2.5 may not be assigned or transferred, except that such right is assignable by each Investor to any wholly owned subsidiary or parent of, or to any corporation or entity that is, within the meaning of the Act, controlling, controlled by or under common control with, any such Investor or to any Permitted Transferees of such Investor.

 

(f)                                   The right of first offer set forth in this Section 2.5 shall lapse upon the earliest to occur of (i) an initial public offering of the Company’s Common Stock; and (ii) a Liquidation Event.

 

2.6                               Common Stock and Stock Option Vesting. Unless otherwise unanimously approved by the Board of Directors or a committee of the Board of Directors with authority regarding the issuance of stock options and other stock equivalents, all stock options and other stock equivalents issued on or after the date of this Agreement to employees of the Company or a subsidiary of the Company shall be subject to vesting as follows: (a) twenty-five percent (25%) of such stock shall vest at the end of the first year following the earlier of the date of issuance or such person’s services commencement date with the Company, and (b) seventy-five percent (75%) of such stock shall vest over the remaining three (3) years in equal increments on a monthly basis.

 

2.7                               Insurance. The Company shall maintain (for so long as the Investors are entitled to designate at least one director and for seven years thereafter), directors and officers insurance in an amount of at least Four Million Dollars ($4,000,000).

 

2.8                               Management of Subsidiaries. The Company shall at any time institute and shall keep in place arrangements reasonably satisfactory to the Board of Directors (including the directors elected by the Investors) such that the Company (i) will control the operations of any direct or indirect subsidiary or entity controlled by the Company or any subsidiary or affiliate of the Company (each a “Group Company”) and (ii) will be permitted to properly consolidate the financial results for each Group Company in consolidated financial statements for the Company prepared under US GAAP. The composition of the board of directors (or similar governing body) of each other Group Company, whether now in existence or formed in the future, shall be reasonably acceptable to the Company’s Board of Directors. Further, the Company shall take all necessary actions to maintain any Group Company, whether in existence on the date hereof or formed after the date hereof, as may be necessary to conduct the business of the Company (together with its subsidiaries), as conducted or as proposed to be conducted. The Company shall cause each Group Company, whether in existence on the date hereof or formed after the date hereof, to comply in all material respects with all applicable laws, rules and regulations. All material aspects of such formation, maintenance and compliance of any Group Company, whether in existence on the date hereof or formed after the date hereof, shall be subject to the review and approval by the Board of Directors of the Company, and the Company shall provide each Major Investor, at the request of such Major Investor, with copies of all material related documents and correspondence.

 

 

2.9                               Foreign Corrupt Practices Act. Neither the Company nor any of its direct or indirect subsidiaries nor any of its associates, nor any director, officer, agent, employee, consultant, or other person associated with or acting on its behalf (collectively referred to herein as “personnel”) will make, directly or indirectly, any payment, loan or gift (or any offer, promise or authorization of any such payment, loan or gift) of any money or anything of value to or for the use of: (1) any government official in any jurisdiction; (2) any political party or official thereof or any candidate for political office; or (3) any person under circumstances in which the Company or any of its direct or indirect subsidiaries (as the case may be) or any of their respective personnel knows or has reason to know that all or any portion of such money or thing of value was or will be offered, given or promised, directly or indirectly, to any person named in items (1) and (2) above, for the purpose of:

 

(a)                                 influencing any act or decision of such official, political party or party official, or candidate for political office in his or its official capacity, inducing such official, political party, party official or candidate for political office to do or omit to do any act in violation of the lawful duty of such foreign official, political party, party official or candidate for political office, or securing any improper advantage; or

 

(b)                                 inducing such official, political party, party official or candidate for political office to use his or its influence with a government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist in obtaining or retaining business for or with, or directing business to, any person.

 

For purposes of this Section 2.9, the term “government official” shall mean any officer or employee of a government or any department, agency or instrumentality thereof, or of a public international organization, or any person acting in an official capacity for or on behalf of any such government or department, agency or instrumentality thereof, or for or on behalf of any such public international organization; the term also includes an employee of a government-owned or government-controlled commercial enterprise.

 

The Company shall not, and shall ensure that none of its direct or indirect subsidiaries shall, authorize, offer or make payments directly or indirectly to any government official that would result in a violation of the Foreign Corrupt Practices Act of the United States.

 

2.10                        Right to Conduct Activities. The Company hereby acknowledges that the Investors are investment funds, and as such invest in numerous portfolio companies, some of which may be deemed competitive with the Company’s business. Neither the Investors nor their respective partners, affiliates, advisors or affiliated investment funds shall be liable to the Company or any other Group Company for any claim arising out of, or based upon, (i) the investment by an Investor or any affiliated investment fund in any entity competitive to the Company, or (ii) actions taken by any partner, officer, advisor or other representative of an Investor or any of its respective affiliates or advisors to assist any such competitive company, whether or not such action was taken as a board member of such competitive company, or otherwise; provided that the foregoing shall not be deemed to limit the fiduciary duties otherwise owed to the Company by any individual designated a director of the Company or limit any Investor’s liability associated with misuse of confidential information.

 

 

2.11                        Termination. The covenants of the Company set forth in Sections 2.6, 2.7, and 2.8 shall terminate upon a Liquidation Event.

 

3.                                      Miscellaneous.

 

3.1                               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.

 

3.2                               Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, without regard to conflicts of law principles.

 

3.3                               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.

 

3.4                               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.

 

3.5                               Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the recipient’s 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) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth on the signature page hereto, or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this Section 3.5 If notice is given to the Company, a copy shall also be sent to Company counsel and if notice is given to Investor, a copy shall also be given to Investor Counsel.

 

3.6                               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.

 

3.7                               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 then outstanding;

 

 

provided however, that any amendment or waiver adversely affecting the Founders in a manner different from the Investors shall also require the written consent of the holders of a majority of the Registrable Securities held by the Founders who continue to provide services to the Company or a subsidiary of the Company at the time of such amendment or waiver, provided further, that any amendment or waiver adversely affecting any Investor in a manner different from the other Investors shall also require the written consent of such Investor and provided further that, for so long as GPSF holds any shares of the Company’s capital stock, any amendment or waiver of Section 2.9 shall also require the written consent of GPSF. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities then outstanding, each Investor, each Founder and each future holder of all such Registrable Securities and the Company.

 

3.8                               Severability. If any of the provisions of this Agreement shall be held by a court or other tribunal of competent jurisdiction to be illegal, invalid or unenforceable, such provisions shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect.

 

3.9                               Delays or Omissions. It is agreed that no delay or omission to exercise any right, power, or remedy accruing to any party, upon any breach, default or noncompliance by another party under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent, or approval of any kind or character on any party’s part of any breach, default or noncompliance under this Agreement or any waiver on such party’s part of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to any party, shall be cumulative and not alternative.

 

3.10                        Aggregation of Stock. All shares of Registrable Securities, Preferred Stock or Common Stock held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

3.11                        Entire Agreement. This Agreement is intended to be the sole agreement of the parties as it relates to this subject matter and supersedes all prior agreements, including without limitation the Prior Agreement, which shall be deemed terminated upon the execution of this Agreement by the parties hereto.

 

 

[Reminder of this page intentionally left blank]

 

 

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

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
SOLAREDGE TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Guy Sella
    
	
 
    	
 
    	
Guy Sella
    
	
 
    	
 
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Address:
    	
6 HeHarash St.
    
	
 
    	
 
    	
Hod Hasharon, Israel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FOUNDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Guy Sella
    
	
 
    	
Guy Sella
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Lior Handelsman
    
	
 
    	
Lior Handelsman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Yoav Galin
    
	
 
    	
Yoav Galin
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Meir Adest
    
	
 
    	
Meir Adest
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Amir Fishelov
    
	
 
    	
Amir Fishelov
    
				

 

 

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

 

	
 
    	
NWC SOLAREDGE HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William Hallisey
    
	
 
    	
Name:
    	
William Hallisey
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
c/o New World Capital Group
    
	
 
    	
527 Madison Avenue, 24th Floor 
    
	
 
    	
New York, NY 10022 USA
    
	
 
    	
Attention: Bill Hallisey
    
	
 
    	
 
    
	
 
    	
DEP SE, L.P,
    
	
 
    	
By:
    	
DEP GP, L.P., its general partner
    
	
 
    	
By:
    	
DEP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ivy Dodes
    
	
 
    	
Name:
    	
Ivy Dodes
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
c/o Credit Suisse Securities (USA) LLC 
    
	
 
    	
One Madison Avenue
    
	
 
    	
New York, NY 10010 USA
    
	
 
    	
Attention: Ivy B. Dodes
    
	
 
    	
 
    
	
 
    	
Copy to:
    
	
 
    	
Credit Suisse Securities (USA) LLC
    
	
 
    	
One Madison Avenue
    
	
 
    	
New York, NY 10010 USA
    
	
 
    	
Attention: Legal and Compliance Dept.
    
	
 
    	
 
    
	
 
    	
And to:
    
	
 
    	
Michael R. Flynn 
   Norton Rose Fulbright
    
	
 
    	
666 Fifth Avenue
    
	
 
    	
New York, NY 10010 USA
    
	
 
    	
 
    
	
 
    	
(None of the entities above legal notice by electronic mail.)
    

 

 

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

 

 

	
 
    	
Kreos Capital IV
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
Address:
    	
 
    

 

 

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

 

	
 
    	
VERTEX III (C.I.) FUND, L.P.
    
	
 
    	
VERTEX III (ISRAEL) FUND, L.P.
    
	
 
    	
VERTEX III (ISRAEL B) FUND, L.P.
    
	
 
    	
VERTEX III (DCM) FUND, L.P.
    
	
 
    	
VERTEX III (C.I.) (G) FUND, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Vertex III Management (C.I.) Ltd.
  its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Yoram Oron
    	
/s/ Ran Gartenberg
    
	
 
    	
Name:
    	
Yoram Oron
    	
Ran Gartenberg
    
	
 
    	
Title:
    	
Founder & General Partner
    	
General Partner, CFO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
QUEST FOR GROWTH N.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Investment Advisory Program - on behalf of Quest for Growth N.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Yoram Oron 
    	
/s/ Ran Gartenberg
    
	
 
    	
Name:
    	
Yoram Oron 
    	
Ran Gartenberg
    
	
 
    	
Title:
    	
Founder & General Partner
    	
General Partner, CFO
    

 

 

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

 

	
 
    	
GENESIS PARTNERS III L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eddy Shalev
    
	
 
    	
 
    	
EDDY SHALEV
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
FOUNDER & MANAGING PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
Address: 
    	
11 Hamenofim St.
    
	
 
    	
 
    	
P.O.B. 12866 Herzliya 46733
    

 

 

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

 

	
 
    	
OPUS CAPITAL VENTURE PARTNERS V, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Opus Capital Venture Partners (GP), L.P.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
By:
    	
Opus Capital Venture Partners (GPLLC), L.L.C.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dan Avida
    
	
 
    	
 
    	
Dan Avida, General Partner
    

 

 

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

 

	
 
    	
ORR PARTNERS I-S, L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
ORR Partners  I-S GP, LP,
    
	
 
    	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
By: 
    	
ORR Partners I-S, LLC
    
	
 
    	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Avery More
    
	
 
    	
 
    	
Avery More, Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Address: 
    	
5930 E. Royal Lane #120 
    
	
 
    	
 
    	
Dallas, TX 75230
    
	
 
    	
 
    	
 
    
	
 
    	
ORR PARTNERS I, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
ORR Partners I  GP, LP,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
ORR Partners I, LLC 
    
	
 
    	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Avery More
    
	
 
    	
 
    	
Avery More, Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Address: 
    	
5930 E. Royal Lane #120 
    
	
 
    	
 
    	
Dallas, TX 75230
    
						

 

 

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

 

	
 
    	
PACVEN WALDEN VENTURES VI, L.P. 
   PACVEN WALDEN VENTURES 
   PARALLEL VI, L.P
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Pacven Walden Management VI Co.,
    
	
 
    	
 
    	
Ltd., its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Kau
    
	
 
    	
Name:
    	
Andrew Kau
    
	
 
    	
Title:
    	
Managing Director
    
				

 

 

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

 

 

	
 
    	
NAZARATHY FAMILY REVOCABLE 
   TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Moshe Nazarathy
    
	
 
    	
Name: 
    	
Prof. Moshe Nazarathy 
    
	
 
    	
Title:
    	
 
    

 

 

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

 

 

	
 
    	
GE VENTURES LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Mayhew
    
	
 
    	
Name:
    	
David Mayhew
    
	
 
    	
Title:
    	
Chief Risk Officer
    

 

 

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

 

 

	
 
    	
JP ASIA CAPITAL PTE. LTD
    	

    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter Tan
    
	
 
    	
Name:
    	
PETER TAN
    
	
 
    	
Title:
    	
Managing Partner
    

 

 

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

 

 

	
 
    	
LIGHTSPEED VENTURE PARTNERS VIII, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Lightspeed General Partner VIII, L.P., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Lightspeed Ultimate General Partner VIII, Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Duly Authorized Signatory
    

 

 

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

 

	
 
    	
NORWEST VENTURE PARTNERS XI, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Genesis VC Partners XI, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dror Nahumi
    
	
 
    	
Name:
    	
Dror Nahumi
    
	
 
    	
Title:
    	
General Partner
    

 

 

EXHIBIT A

 

Schedule of Investors

 

Vertex III (C.I.) Fund L.P. 
 Vertex III (Israel) Fund, L.P.
 Vertex III (Israel B) Fund, L.P.
 Vertex III (DCM) Fund, L.P.
 Vertex III (C.I.) (G) Fund, L.P.
 Quest for Growth NV

Genesis Partners III L.P.

Opus Capital Venture Partners V, L.P.

ORR Partners I-S, L.P.

Pacven Walden Ventures VI, L.P.

Pacven Walden Ventures Parallel VI, L.P.

Nazarathy Family Revocable Trust

JP Asia Capital Pte. Ltd

GE Ventures Limited

Lightspeed Venture Partners VIII LP

Norwest Venture Partners XI, L.P.

NWC SolarEdge Holdings, LLC 

DEP SE, L.P.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]