Document:

EX-10.5

 Exhibit 10.5 

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of September    , 2013 (the “Effective
Date”), by and between ECM Energy Services, Inc., a Delaware corporation (the “Company”) having its principal place of business at 1000 Commerce Park Drive, Suite 301, Williamsport, PA 17701, and Robert Veshosky
(“Executive”, and the Company and the Executive collectively referred to herein as the “Parties”) having an address at 146 Tartan Dr, Greensburg, PA 15601. 

W I T N E S S E T H: 

WHEREAS, the Company desires to hire Executive and to employ him as the Company’s Senior Vice President of Operations commencing
October 1, 2013, and the Parties desire to enter into this Agreement embodying the terms of such employment; 
 NOW, THEREFORE, in
consideration of the premises and the mutual covenants and promises of the Parties contained herein, the Parties, intending to be legally bound, hereby agree as follows: 

1. Title and Job Duties. 

(a) Subject to the terms and conditions set forth in this Agreement, the Company agrees to employ Executive as Senior Vice President of
Operations. Executive shall report directly to the President of the Company. 
 (b) Executive accepts such employment and agrees, during the
term of his employment, to devote his full business and professional time and energy to the Company, and agrees faithfully to perform his duties and responsibilities in an efficient, trustworthy and
business-like manner. Executive also agrees that the Chief Executive Officer of the Company (the “CEO”) shall determine from time to time such other duties as may be assigned to him. Executive agrees
to carry out and abide by such directions of the CEO. Visible leadership is expected from Executive, which will require frequent travelling (including but not limited to the Company’s corporate offices in Williamsport, PA and Houston, Texas).

 (c) Without limiting the generality of the foregoing, Executive shall not, without the written approval of the Company, render services
of a business or commercial nature on his own behalf or on behalf of any other person, firm, or corporation, whether for compensation or otherwise, during his employment hereunder. The foregoing shall not apply to Executive’s involvement in
associations, charities and service on another entity’s board of directors, provided such involvement does not interfere with Executives responsibilities (and as it pertains to any service on another entity’s board of directors, provided
such action is pre-approved by the Company). 
 2. Salary and Additional Compensation. 

(a) Base Salary. The Company shall pay to Executive an annual base salary (“Base Salary”) of $180,000, less applicable
withholdings and deductions, in accordance with the Company’s normal payroll procedures. The Compensation Committee shall review the 

 
Executive’s Base Salary no less than annually and may increase (but not decrease) such Base Salary during the term of this Agreement. 

(b) Annual Bonus. Commencing with the year ended December 31, 2014, Executive may be entitled to receive an annual cash bonus (the
“Annual Bonus”), payable with respect to each year of the Term subsequent to the issuance of the Company’s final audited financial statements for such year, but in no event later than 120 days after the end of the Company’s most
recently completed fiscal year. The final determination on the amount, if any, of the Annual Bonus will be made by, and in the sole discretion of the Compensation Committee of the Board of Directors of the Company (the “Board”) (or the
Board, if such committee has been dissolved), based on criteria established by the Compensation Committee of the Board (or the Board, if such committee has been dissolved) within ninety (90) days of the beginning of such fiscal year. The
Compensation Committee of the Board (or the Board, if such committee has been dissolved) may also consider other more subjective factors in making its determination. The targeted amount of the Annual Bonus shall be 75% of the Executive’s Base
Salary and the maximum amount of the Annual Bonus shall be 150% of the Executive’s Base Salary. The actual Annual Bonus, if any, for any given period may be lower than 75%. For any fiscal year in which Executive is employed for less than the
full year, Executive may receive a bonus which is prorated based on the number of full months in the year which are worked. 
 (c) Annual
Equity Grant. Commencing with the 2015 equity grants, which may be granted in the fourth quarter of 2014, Executive may be entitled to receive an annual equity grant (the “Annual Equity Grant”), issuable with respect to each year of
the Term. The final determination on the amount, if any, and the form of the Annual Equity Grant will be made by, and in the sole discretion of the Compensation Committee of the Board of Directors of the Company (the “Board”) (or the
Board, if such committee has been dissolved). The targeted amount of the Annual Equity Grant shall be 50% of the Executive’s Base Salary. The Annual Equity Grant shall be made pursuant to the ECM Energy Services, Inc. 2013 Stock Plan, and shall
in all respects be subject to the terms and conditions of such plan. The Compensation Committee may in its sole and absolute discretion grant from time to time Executive additional options in such amounts and under such terms and conditions, as the
Compensation Committee may determine in its sole and absolute discretion. 
 (d) Location Bonus. Executive shall also be entitled to
a one-time bonus of $20,000 payable if, and only if, any new rental locations opened by the Company and designated by the Company in writing as a location for which Executive will be responsible achieves cumulative earnings before interest, taxes,
depreciation and amortization (“EBITDA”) of $1,000,000 within 18 months of the opening of such new rental location. The above bonus shall be payable within 30 days of the Company’s filing of it Form 10-Q or Form 10-K (with respect to
the fourth quarter of any fiscal year) for the quarter in which such bonus is earned. 
 (e) Option Grant. Contemporaneous with the
Executive’s execution of this Agreement, Executive will receive a grant (the “Stock Option Grant”) of stock options (the “Stock Options”) to purchase 80,000 shares of the Company’s common stock at an exercise price per
share of $6.00. The Stock Options shall have a term of five years and shall vest in three (3) equal installments (or 26,667 shares each installment with 26,666 shares on the final installment) on each of the succeeding three anniversary dates
of the Executive’s execution of this Agreement 

 
(i.e. the first such installment shall vest on the first anniversary of the Effective Date of this Agreement), provided Executive is Senior Vice President of Operations on such vesting date. 

The Stock Option Grant shall be made pursuant to the ECM Energy Services, Inc. 2013 Stock Plan, and shall in all respects be subject to the terms and
conditions of such plan. Notwithstanding anything contained to the contrary therein, upon a termination of employment for reasons other than Cause or Voluntary Resignation, all unvested shares pursuant to the Stock Option Grant shall become
immediately vested and eligible for exercise thereunder for a period of the lesser of 90 days or the remaining contractual term of the Stock Option Grant. 

3. Expenses. In accordance with Company policy, the Company shall reimburse Executive for all reasonable association fees, professional
related expenses (certifications, licenses and continuing professional education) and business expenses properly and necessarily incurred and paid by Executive in the performance of his duties under this Agreement upon his presentment of detailed
receipts in the form required by the Company’s policy. Notwithstanding the foregoing, all expenses must be promptly submitted for reimbursement by the Executive. In no event shall any reimbursement be paid by the Company after the end of the
year following the year in which the expense is incurred by the Executive. 
 4. Benefits. 

(a) Vacation. Executive shall be entitled to four weeks vacation per year, which shall accrue at a rate of 1.67 days per month.
Vacation must be taken in the year in which it accrues and the dates of any vacation must be approved by the Chief Executive Officer. 
 (b)
Health Insurance and Other Plans. Executive shall be eligible to participate in the Company’s medical, dental and other employee benefit programs, if any, that are provided by the Company for its employees at Executive’s level in
accordance with the provisions of any such plans, as the same may be in effect from time to time. 
 5. Term. The term of this
Agreement will commence on the Effective Date hereof and shall continue until terminated by either party in accordance with Section 6 below. 

6. Termination. 
 (a)
Termination at the Company’s Election. 
 (i) For Cause. At the election of the Company, Executive’s employment may
be terminated at any time for Cause (as defined below) upon written notice to Executive given pursuant to Section 12 of this Agreement. For purposes of this Agreement, “Cause” for termination shall mean that Executive: (A) pleads
“guilty” or “no contest” to, or is convicted of an act which is defined as a felony under federal or state law, or is indicted or formally charged with acts involving criminal fraud or embezzlement; (B) in carrying out his
duties, engages in conduct that constitutes negligence or willful misconduct; (C) engages in any conduct that may cause harm to the reputation of the Company; or (D) materially breaches any term of this Agreement. With respect to
subsection (D) of this section, to the extent such material breach may be cured, the Company shall provide Executive with written notice of the material breach and Executive shall have ten (10) days to cure such breach. 

 (ii) Upon Disability, Death or Without Cause. At the election of the Company,
Executive’s employment may be terminated: (A) should Executive have a physical or mental impairment that substantially limits a major life activity and Executive is unable to perform the essential functions of his job with or without
reasonable accommodation (“Disability”); (B) upon Executive’s death; or (C) at any time Without Cause for any or no reason. 

(b) Termination at Executive’s Election; Good Reason Termination. Notwithstanding anything contained elsewhere in this Agreement
to the contrary, Executive may terminate his employment hereunder at any time and for any reason, upon ninety (90) days’ prior written notice given pursuant to Section 12 of this Agreement (“Voluntary Resignation”), provided
that upon notice of resignation, the Company may terminate Executive’s employment immediately and pay Executive ninety (90) days’ Base Salary in lieu of notice. Furthermore, the Executive may terminate this Agreement for “Good
Reason,” which shall be deemed to exist: (i) if the Company’s Board of Directors or that of any successor entity of Company, fails to appoint or reappoint the Executive or removes the Executive as a Vice President of the Company;
(ii) a material breach by the Company of this Agreement; or (iii) if Executive is assigned any duties materially inconsistent with the duties or responsibilities of a Vice President of the Company as contemplated by this Agreement or any
other action by the Company that results in a material diminution in such position, authority, duties, or responsibilities, excluding an isolated, insubstantial, and inadvertent action not taken in bad faith. Good Reason shall not exist hereunder
unless the Executive provides notice in writing to the Company of the existence of a condition described above within a period not to exceed 90 days of the initial existence of the condition, upon the notice of which the Company does not remedy the
condition within thirty (30) days of receipt of such notice. 
 7. Severance. 

(a) Subject to Section 7(b) below, if Executive’s employment is terminated at any time, for reasons other than death, Disability,
Cause or Voluntary Resignation Executive shall be entitled to receive a severance payment equal to six (6) months of Executive’s Base Salary, less applicable deductions and withholdings. Such severance payment shall be made in a single
lump sum sixty (60) days following such termination, provided the Executive has executed and delivered to the Company, and has not revoked a general release of the Company, its parents, subsidiaries and affiliates and each of its officers,
directors, employees, agents, successors and assigns, and such other persons and/or entities as the Company may determine, in a form reasonably acceptable to the Company. Such general release shall be delivered on or about the date of termination
and must be executed within sixty (60) days of termination. 
 (b) If Executive’s employment is terminated for reasons other than
death, Disability, Cause or Voluntary Resignation in connection with a Change In Control or within twelve (12) months thereof, Executive shall be entitled to receive, lieu of any severance pursuant to Section 7(a) above, a severance
payment equal to twelve (12) months of Executive’s Base Salary, less applicable deductions and withholdings. Such severance payment shall be made in a single lump sum sixty (60) days following such termination, provided the Executive
has executed and delivered to the Company, and has not revoked a general release of the Company, its parents, subsidiaries and affiliates and each of its officers, directors, employees, agents, 

 
successors and assigns, and such other persons and/or entities as the Company may determine, in a form acceptable to the Company. For purposes of this Agreement, “Change In Control”
means the occurrence of any of the following events: (i) an acquisition (other than directly from the Company) of any voting securities of the Company by any person or group of affiliated or related persons (as such term is defined in Sections
13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (“Exchange Act”)), immediately after which such person or group has beneficial ownership (within the meaning of the Exchange Act) of more than fifty percent (50%) of the
combined voting power of the Company’s then outstanding voting securities; provided that this subsection shall not apply to an acquisition of voting securities by any employee benefit plan or trust maintained by or for the benefit of the
Company or its employees; (ii) a merger, consolidation or reorganization involving the Company whereby the holders of Company common stock immediately preceding such transaction no longer hold a majority of the shares of Company common stock
after such transaction; or (iii) the sale or other disposition of all or substantially all of the Company’s assets. 
 (c)
Notwithstanding the foregoing, (i) any payment(s) of “nonqualified deferred compensation” (within the meaning of Section 409A of the Code and the regulations and official guidance issued thereunder (“Section 409A”))
that is/are required to be made to Executive hereunder as a “specified employee” (as defined under Section 409A) as a result of such employee’s “separation from service” (within the meaning of Section 409A) shall
be delayed for the first six (6) months following such separation from service (or, if earlier, the date of death of the specified employee) and shall instead be paid upon expiration of such six (6) month delay period; and (ii) for
purposes of any such payment that is subject to Section 409A, if the Executive’s termination of employment triggers the payment of “nonqualified deferred compensation” hereunder, then the Executive will not be deemed to have
terminated employment until the Executive incurs a “separation from service” within the meaning of Section 409A. 
 (d) If
Executive’s employment is terminated at any time, for reasons other than gross misconduct, and if Executive is eligible and enrolled in the Company’s medical and dental benefit programs, the Company will provide the necessary forms,
including COBRA notifications, to allow Executive to continue those benefits for the time period allowed by law or under applicable programs. However, assuming Executive is eligible and elects to continue those benefits and Executive’s
employment terminated for reasons other than Cause or Voluntary Resignation, the Company will continue to pay the same portion of Executive’s medical and dental insurance premiums under COBRA as during active employment (for Executive and
eligible dependents) until the earlier of: (1) one year from Executive’s cessation from employment; or (2) the date Executive is eligible for medical and/or dental insurance benefits from another employer. 

8. Confidentiality Agreement. 

(a) Executive understands that during the Term he may have access to unpublished and otherwise confidential information both of a technical
and non-technical nature, relating to the business of the Company and any of its parents, subsidiaries, divisions, affiliates (collectively, “Affiliated Entities”), or clients, including without limitation any of their actual or
anticipated business, research or development, any of their technology or the implementation or 

 
exploitation thereof, including without limitation information Executive and others have collected, obtained or created, information pertaining to clients, accounts, vendors, prices, costs,
materials, processes, codes, material results, technology, system designs, system specifications, materials of construction, trade secrets and equipment designs, including information disclosed to the Company by others under agreements to hold such
information confidential (collectively, the “Confidential Information”). Executive agrees to observe all Company policies and procedures concerning such Confidential Information. Executive further agrees not to disclose or use, either
during his employment or at any time thereafter, any Confidential Information for any purpose, including without limitation any competitive purpose, unless authorized to do so by the Company in writing, except that he may disclose and use such
information when necessary in the performance of his duties for the Company. Executive’s obligations under this Agreement will continue with respect to Confidential Information, whether or not his employment is terminated, until such
information becomes generally available from public sources through no action of Executive. Notwithstanding the foregoing, however, Executive shall be permitted to disclose Confidential Information as may be required by a subpoena or other
governmental order, provided that he first notifies promptly the Company of such subpoena, order or other requirement and allows the Company the opportunity to obtain a protective order or other appropriate remedy. 

(b) During Executive’s employment, upon the Company’s request, or upon the termination of his employment for any reason, Executive
will promptly deliver to the Company all documents, records, files, notebooks, manuals, letters, notes, reports, customer and supplier lists, cost and profit data, e-mail, apparatus, computers, blackberries or other PDAs, hardware, software,
drawings, blueprints, and any other material of the Company or any of its Affiliated Entities or clients, including all materials pertaining to Confidential Information developed by Executive or others, and all copies of such materials, whether of a
technical, business or fiscal nature, whether on the hard drive of a laptop or desktop computer, in hard copy, disk or any other format, which are in his possession, custody or control. 

(c) Executive will promptly disclose to the Company any idea, invention, discovery or improvement, whether patentable or not
(“Creations”), conceived or made by him alone or with others at any time during his employment. Executive agrees that the Company owns all such Creations, conceived or made by Executive alone or with others at any time during his
employment, and Executive hereby assigns and agrees to assign to the Company all rights he has or may acquire therein and agrees to execute any and all applications, assignments and other instruments relating thereto which the Company deems
necessary or desirable. These obligations shall continue beyond the termination of his employment with respect to Creations and derivatives of such Creations conceived or made during his employment with the Company. Executive understands that the
obligation to assign Creations to the Company shall not apply to any Creation which is developed entirely on his own time without using any of the Company’s equipment, supplies, facilities, and/or Confidential Information unless such Creation
(a) relates in any way to the business or to the current or anticipated research or development of the Company or any of its Affiliated Entities; or (b) results in any way from his work at the Company. 

(d) Executive will not assert any rights to any invention, discovery, idea or improvement relating to the business of the Company or any of
its Affiliated Entities or to his 

 
duties hereunder as having been made or acquired by Executive prior to his work for the Company, except for the matters, if any, described in Appendix A to this Agreement. 

(e) During the Term, if Executive incorporates into a product or process of the Company or any of its Affiliated Entities anything listed or
described in Appendix A, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the right to grant and authorize sublicenses) to make, have made, modify, use, sell,
offer to sell, import, reproduce, distribute, publish, prepare derivative works of, display, perform publicly and by means of digital audio transmission and otherwise exploit as part of or in connection with any product, process or machine. 

(f) Executive agrees to cooperate fully with the Company, both during and after his employment with the Company, with respect to the
procurement, maintenance and enforcement of copyrights, patents, trademarks and other intellectual property rights (both in the United States and foreign countries) relating to such Creations. Executive shall sign all papers, including, without
limitation, copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights and powers of attorney, which the Company may deem necessary or desirable in order to protect its rights and interests
in any Creations. Executive further agrees that if the Company is unable, after reasonable effort, to secure Executive’s signature on any such papers, any officer of the Company shall be entitled to execute such papers as his agent and
attorney-in-fact and Executive hereby irrevocably designates and appoints each officer of the Company as his agent and attorney-in-fact to execute any such papers on his behalf and to take any and all actions as the Company may deem necessary or
desirable in order to protect its rights and interests in any Creations, under the conditions described in this paragraph. 
 9.
Non-solicitation; non-competition. (a) Executive agrees that, during the Term and, if Executive has, or is scheduled to receive severance payments pursuant to Section 7(a) or 7(b), until six (6) months after the termination of
his employment, Executive will not, directly or indirectly, including on behalf of any person, firm or other entity, employ or solicit for employment any employee of the Company or any of its Affiliated Entities, or anyone who was an employee of the
Company or any of its Affiliated Entities within the twelve (12) months prior to the termination of Executive’s employment, or induce any such employee to terminate his or her employment with the Company or any of its Affiliated Entities.

 (b) Executive further agrees that, during the Term and, if Executive has, or is scheduled to receive severance payments pursuant to
Section 7(a) or 7(b), until six (6) months after the termination of his employment, Executive will not, directly or indirectly, including on behalf of any person, firm or other entity, without the express written consent of an authorized
representative of the Company, (i) perform services within the Territory (as defined below) for any Competing Business (as defined below), whether as an employee, consultant, agent, contractor or in any other capacity, (ii) hold office as
an officer or director or like position in any Competing Business, or (iii) request any present or future customers or suppliers of the Company or any of its Affiliated Entities to curtail or cancel their business with the Company or any of its
Affiliated Entities. These obligations will continue for the specified period regardless of whether the termination of Executive’s employment was voluntary or involuntary or with or without Cause or for any other reason. 

 (c) “Competing Business” means any corporation, partnership or other entity or person
(other than the Company) which is engaged in the business of equipment rental, water hauling and logistics, or pilot car and escort services, which the Company has been engaged in during the preceding twelve (12) months or planned to be engaged
in during the immediate future. 
 (d) “Territory” shall mean within any state or foreign jurisdiction in which the Company or any
subsidiary of the Company is then providing services or products or marketing its services or products (or engaged in active discussions to provide such services). 

(e) Executive agrees that in the event a court determines the length of time or the geographic area or activities prohibited under this
Section 9 are too restrictive to be enforceable, the court shall reduce the scope of the restriction to the extent necessary to make the restriction enforceable. In furtherance and not in limitation of the foregoing, the Company and the
Executive each intend that the covenants contained in this Section 9 shall be deemed to be a series of separate covenants, one for each and every state, territory or jurisdiction of the United States and any foreign country set forth
therein. If, in any judicial proceeding, a court shall refuse to enforce any of such separate covenants, then such unenforceable covenants shall be deemed eliminated from the provisions hereof for the purpose of such proceedings to the extent
necessary to permit the remaining separate covenants to be enforced in such proceedings. 
 10. Representation and Warranty. The
Executive hereby acknowledges and represents that he has had the opportunity to consult with legal counsel regarding his rights and obligations under this Agreement and that he fully understands the terms and conditions contained herein. Executive
represents and warrants that Executive has provided the Company a true and correct copy of any agreements that purport: (a) to limit Executive’s right to be employed by the Company; (b) to prohibit Executive from engaging in any
activities on behalf of the Company; or (c) to restrict Executive’s right to use or disclose any information while employed by the Company. Executive further represents and warrants that Executive will not use on the Company’s behalf
any information, materials, data or documents belonging to a third party that are not generally available to the public, unless Executive has obtained written authorization to do so from the third party and provided such authorization to the
Company. In the course of Executive’s employment with the Company, Executive is not to breach any obligation of confidentiality that Executive has with third parties, and Executive agrees to fulfill all such obligations during Executive’s
employment with the Company. Executive further agrees not disclose to the Company or use while working for the Company any trade secrets belonging to a third party. 

11. Injunctive Relief. Without limiting the remedies available to the Company, Executive acknowledges that a breach of any of the
covenants contained in Sections 8 and 9 above may result in material irreparable injury to the Company for which there is no adequate remedy at law, that it will not be possible to measure precisely damages for such injuries and that, in the event
of such a breach or threat thereof, the Company shall be entitled, without the requirement to post bond or other security, to obtain a temporary restraining order and/or injunction restraining Executive from engaging in activities prohibited by this
Agreement or such other relief as may be required to specifically enforce any of the covenants in Sections 8 and 9 of this Agreement. 

 12. Notice. Any notice or other communication required or permitted to be given to the
Parties shall be deemed to have been given if either personally delivered, or if sent for next-day delivery by nationally recognized overnight courier, and addressed as follows: 

 

	 	(a)	If to Executive, to: 

 Robert Veshosky 

[                    ] 

[                    ] 

 

	 	(b)	If to the Company, to: 

 ECM Energy Services, Inc. 

1000 Commerce Park Drive, Suite 301 

Williamsport, PA 17701 

Attention: President 
 with a
copy to (which shall not constitute notice hereunder): 
 Ralph V. De Martino 

Schiff Hardin LLP 
 901 K Street
NW, Suite 700 
 Washington, D.C. 20001 

13. Severability. If any provision of this Agreement is declared void or unenforceable by a court of competent jurisdiction, all other
provisions shall nonetheless remain in full force and effect. 
 14. Indemnification. The Company and Executive shall enter into the
Indemnification and Advancement Agreement set forth in Exhibit B upon the execution of this Agreement. The Company further agrees that Executive will be covered by “directors and officers” insurance policies with respect to
Executive’s acts as an officer. 
 15. Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware, without regard to the conflict of laws provisions thereof. Any action, suit or other legal proceeding that is commenced to resolve any matter arising under or relating to any provision of this
Agreement shall be submitted to the exclusive jurisdiction of any state or federal court in Wilmington, Delaware. 
 16. Waiver. The
waiver by either Party of a breach of any provision of this Agreement shall not be or be construed as a waiver of any subsequent breach. The failure of a Party to insist upon strict adherence to any provision of this Agreement on one or more
occasions shall not be considered a waiver or deprive that Party of the right thereafter to insist upon strict adherence to that provision or any other provision of this Agreement. Any such waiver must be in writing, signed by the Party against whom
such waiver is to be enforced. 
 17. Assignment. This Agreement is a personal contract and Executive may not sell, transfer, assign,
pledge or hypothecate his rights, interests and obligations hereunder. Except as 

 
otherwise herein expressly provided, this Agreement shall be binding upon and shall inure to the benefit of Executive and his personal representatives and shall inure to the benefit of and be
binding upon the Company and its successors and assigns, including without limitation, any corporation or other entity into which the Company is merged or which acquires all or substantially all of the assets of the Company. 

18. Entire Agreement. This Agreement (together with Appendix A hereto) embodies all of the representations, warranties,
covenants, understandings and agreements between the Parties relating to Executive’s employment with the Company. No other representations, warranties, covenants, understandings, or agreements exist between the Parties relating to
Executive’s employment. This Agreement shall supersede all prior agreements, written or oral, relating to Executive’s employment. This Agreement may not be amended or modified except by a writing signed by the Parties. 

[Signature page follows] 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered on
the date first written above. 
  

					
		 	ECM ENERGY SERVICES, INC.
			
		 	By:	 	 /s/ Kevin Groman

		 	Name:	 	Kevin Groman
		 	Title:	 	Chief Executive Officer
			
	Agreed to and Accepted:	 		 	
			
	 /s/ Robert Veshosky
	 		 	
	Robert Veshosky	 		 	
			
	Date:	 		 	

 Appendix AEX-4.2

 Exhibit 4.2 

ARASTRA, INC. 

INVESTORS’ RIGHTS AGREEMENT 

THIS INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is made as of October 16, 2004, by and among Arastra,
Inc., a California corporation (the “Company”), and the Investors listed on Schedule A attached hereto (individually, an “Investor” and collectively, the “Investors”). 

RECITALS 
 WHEREAS,
the Company and the Investors are parties to the Series A Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”) pursuant to which the Company will issue and sell shares of its Series A Preferred Stock
(“Series A Preferred Stock”); and 
 WHEREAS, the Investors’ obligations under the Purchase Agreement are
conditioned upon the execution and delivery of this Agreement by the Company. 
 NOW, THEREFORE, in consideration of the mutual
promises and covenants set forth herein, the parties hereto agree as follows: 
 1. Registration Rights. The Company covenants
and agrees as follows: 
 1.1 Definitions. 

For purposes of this Agreement: 

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

(b) The term “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 (as defined below) which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC. 

(c) The term “Holder” means any person owning or having the right to acquire Registrable Securities (as defined below) or
any authorized assignee thereof in accordance with Section 1.12 hereof. 
 (d) The term “IPO” shall mean the sale of the
Company’s common stock (the “Common Stock”) in the Company’s first firm commitment underwritten public offering. 
 (e)
The term “1934 Act” shall mean the Securities Exchange Act of 
 (f) The terms “register,”
“registered and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Act, and the declaration or ordering of effectiveness of such
registration statement or document. 

 (g) The term “Registrable Securities” means (i) the Common Stock issuable
or issued upon conversion of the Series A Preferred Stock, and (ii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with
respect to, or in exchange for or in replacement of the shares referenced in (i) above, and, excluding in all cases, however, any Registrable Securities that have been sold by a person in a transaction in which his or her rights under this
Section 1 are not assigned or that have been sold by a person pursuant to a registration statement under the Act covering such Registrable Securities that has been declared effective by the SEC or in an open market transaction under Rule 144 of
the Act. 
 (h) The number of shares of “Registrable Securities then outstanding” shall be determined by the number of
shares of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities. 

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

1.2 Demand Registration. 

(a) If the Company shall receive at any time or times not earlier than the third anniversary of the date of this Agreement, a written request
from the Holders of at least a majority of the Registrable Securities then outstanding that the Company file a registration statement under the Act covering the registration of Registrable Securities with an anticipated aggregate public offering
price (before any underwriting discounts and commissions) in excess of $25,000,000, the Company will: 
 (i) Within 10 days of the receipt
thereof, give written notice of such request to all Holders; and 
 (ii) As soon as practicable, use its best efforts to effect the
registration under the Act of all Registrable Securities which the Holders request to be registered, together with all or such portion of the Registrable Securities of any Holder or Holders joining in such request as are specified in a written
request received by the Company, within 20 days of the mailing of such notice by the Company in accordance with Section 3.5, subject to the limitations of subsection 1.2(b). 

(b) If the Holders initiating the registration request hereunder (the “Initiating Holders”) intend to distribute or sell 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). The underwriter will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Holders. In such event, the right of any Holder to include his 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 

  
 -2- 

 
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 and complete and execute all questionnaires, powers of attorney, indemnities, and other documents required under the terms of such underwriting agreements. Notwithstanding any other provision of this Section 1.2, if the
underwriter advises the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Company will include in such registration, first, the Registrable Securities requested to
be included in such registration, pro rata among the Holders of Registrable Securities requesting to be included in such registration on the basis of the number of Registrable Securities which are requested to be included in such registration by
each of such Holders, and second, the other securities to be included in such registration. 
 (c) Notwithstanding the foregoing, if
the Company shall furnish to the Initiating Holders a certificate signed by the President of the Company stating that in the good faith judgment of the Company’s Board of Directors (the “Board”), it would be detrimental to the
Company and its stockholders for such registration statement to be filed and it is therefore essential to defer the filing of such registration statement, the Company shall have the right to defer taking action with respect to such filing for a
period of not more than 90 days after receipt of the request of the Initiating Holders; provided, that the Company may not utilize this right more than twice in any 12-month period. 

(d) In addition, the Company shall not be obligated to effect, or to take any action to effect, any such registration pursuant to this
Section 1.2: 
 (i) In any particular jurisdiction in which the Company would be required to execute a general consent to service of
process in effecting such registration, qualification or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Act; 

(ii) After the Company has effected one such registration pursuant to this Section 1.2(a) and such registration has been declared or
ordered effective; 
 (iii) If at the time of the request by the Initiating Holders to register Registrable Securities the Company gives
notice within 30 days of such request that it intends within the next 90 days to file a registration subject to Section 1.3 hereof, and, thereafter, the Company shall use its best efforts to cause such registration statement to become
effective; 
 (iv) During the 180-day period following the effective date of a registration pursuant to Section 1.3 hereof; or 

(v) If the Initiating Holders propose to dispose of shares of Registrable Securities that may be registered on Form S-3 pursuant to a request
made under Section 1.11 hereof. 
 1.3 Company Registration. If (but without any obligation to do so) the Company proposes to
register (including for this purpose a registration effected by the Company for 

  
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stockholders other than the Holders) any of its stock or other securities under the Act in connection with a 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 which 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 which are also being registered), the Company shall, at such time, promptly give each Holder written
notice of such registration. Upon the written reqtiest of each Holder given within 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 1.7, if
applicable, 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 90 days or, if earlier, until the distribution contemplated in the Registration Statement has been completed; provided, that (i) such 90-day period shall be extended for a period of time equal to
the period the Holder refrains from selling any Registrable Securities included in such registration at the request of an underwriter of Common Stock (or other securities) of the Company; and (ii) in the case of any registration of Registrable
Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, such 90-day period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold; 

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

(c) Furnish to each Holder such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of
the Act, and such other documents as it may reasonably request from time to time in order to facilitate the disposition of Registrable Securities owned by it; 

(d) 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 required to qualify to do business or is already subject to service in such jurisdiction and except as may be required by the Act; 

  
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 (e) In the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement; 

(f) Notify each Holder 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; 
 (g) Cause all such
Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then listed; 

(h) Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such
Registrable Securities, in each case not later than the effective date of such registration; 
 (i) Furnish, at the request of any Holder
requesting registration of Registrable Securities pursuant to this Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, (i) an
opinion, dated such date, of the counsel representing the Company for the purpose of such registration, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and (ii) a letter dated such
date, from the independent certified public accountants of the Company, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities; 

(j) Use its best efforts to promptly obtain the withdrawal of any order suspending the effectiveness of a registration statement, or the
lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction; and 

(k) Comply with all applicable rules and regulations of the SEC and make generally available to its securityholders earning statements
satisfying the provisions of Section 11(a) of the Act and Rule 158 thereunder (or any similar rule promulgated under the Act) no later than 45 days after the end of any 12-month period (or 90 days after the end of any 12-month period if such
period is a fiscal year) commencing on the first day of the first fiscal quarter of the Company, after the effective date of a registration statement, which statements shall cover at least said 12-month periods. 

1.5 Furnish Information. 

(a) 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 

  
 -5- 

 
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. 
 (b) The Company shall have no obligation with
respect to any registration requested pursuant to Section 1.2 or Section 1.11 if, due to the operation of subsection 1.5(a), the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in
the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in subsection 1.2(a) or
Section 1.11, whichever is applicable. 
 1.6 Expenses of Registration. The Company shall bear and pay all expenses (other than
underwriting discounts and commissions) incurred in connection with any registration, filing or qualification of Registrable Securities with respect to registrations pursuant to Section 1.2 and Section 1.3 for each Holder (which right may
be assigned as provided in Section 1.12), including, without limitation, all registration, filing, and qualification fees, printers’ and accounting fees relating or apportionable thereto and the reasonable fees and disbursements of one
special counsel for the selling Holders selected by them (not to exceed $25,000); provided, however, that the Company shall not be required to pay for any expenses of registration proceeding begun pursuant
to Section 1.2 if the registration request is subsequently withdrawn at the request of Holders of a majority of the Registrable Securities to be registered, unless the Holders agree to forfeit the right to one demand registration pursuant to
Section 2. Any underwriting discounts and selling commissions in connection with a registration that the Company is not obligated to pay pursuant to this Agreement shall be borne pro rata among the selling Holders. 

1.7 Underwriting Requirements. In connection with any offering involving an underwriting of shares of the Company’s capital stock
described in Section 1.3, the Company shall not be required under Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the
underwriters selected by it, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including Registrable Securities,
requested by stockholders to be included in such offering exceeds the amount of securities that the underwriters determine in their sole discretion is compatible with the success of the offering, the number of shares that may be included in the
underwriting shall be allocated: first, to the Company; second, to the Holders on a pro rata basis according to the total amount of Registrable Securities held by the Holders or in such other proportions as shall mutually be agreed to
among such selling Holders; and third, to any stockholder of the Company (other than a Holder); but in no event shall the amount of securities of the selling Holders of Registrable Securities included in the offering be reduced below 25% of
the total amount of securities included in such offering, unless such offering is the IPO in which case the selling Holders may be excluded entirely if the underwriters make the determination described above and no other stockholders’
securities are included. For purposes of the preceding sentence concerning apportionment, for any selling Holder which is a partnership or corporation, the partners, retired partners, members, former members and stockholders of such holder, or the
estates and family members of any such partners, retired partners, members, former members and any trusts for the 

  
 -6- 

 
benefit of any of the foregoing persons shall be deemed to be a single “selling Holder,” and any pro-rata reduction with respect to such “selling Holder” shall be based upon
the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling Holder,” as defined in this sentence. 

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

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

(a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, members or officers,
directors and stockholders 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, (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,
as incurred, to each such Holder, underwriter or controlling 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 1.9(a) shall not apply to (A) 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, delayed or conditioned), or (B) any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon
a Violation which 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 such 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; 

  
 -7- 

 
provided, however, that the indemnity agreement contained in this subsection 1.9(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, delayed or conditioned; provided, that, in no event shall any indemnity under this subsection 1.9(b) exceed the net proceeds
from the offering received by such Holder. 
 (c) Promptly after receipt by an indemnified party under this Section 1.9
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 1.9, deliver to the indemnifying party a
written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties, which may be represented without conflict by one counsel) shall have the right to
retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if
prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.9, 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 1.9. 
 (d) If the indemnification
provided for in this Section 1.9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage, or expense referred to 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. 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. 

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

  
 -8- 

 1.10 Reports Under Securities Exchange Act of 1934. 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 90 days 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, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of
its securities to the general public is declared effective; 
 (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 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 audited annual or unaudited quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule
or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form. 
 1.11 Form S-3
Registration. In case the Company shall receive from any Holder or Holders of Registrable Securities then outstanding a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance
with an anticipated aggregate price to the public (net of any underwriters’ discounts or commissions) of at least $2,500,000, the Company will: 

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

(b) as soon as practicable, effect 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 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 1.11: (i) if Form S-3 is not available for such offering by the Holders; (ii) in any particular jurisdiction in 

  
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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. The Company
shall have the right to defer taking action with respect to such filing for a period of not more than 90 days after receipt of the request of the Holders; provided, that the Company may not utilize this right more than once in any 12-month
period. 
 (c) 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 pursuant to Section 1.11, including, without limitation, all registration, filing and
qualification fees, printers’ and accounting fees, fees of counsel for the Company, and fees of one special counsel for the selling Holder or Holders (not to exceed $25,000) shall be borne by the Company. Registrations effected pursuant to this
Section 1.11 shall not be counted as registrations effected pursuant to Section 1.2. The Company shall have no obligation to effect more than two S-3 registrations in any 12-month period pursuant to Section 1.11. 

1.12 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 the associated Registrable Securities (a) who is a family member or trust for the benefit of a Holder who is an individual, or
(b) who, after such assignment or transfer, holds at least 100,000 shares (as adjusted for any stock splits, dividends, recapitalizations, combinations and the like) of Registrable Securities or, if less, all of the Registrable Securities of
the Holder; provided: (i) the Company is given prior written notice of such transfer or assignment, furnished the name and address of such transferee or assignee and the Registrable Securities with respect to which such
registration rights are being assigned and (ii) 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 1.14 below.
For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings of transferees and assignees of a partnership or limited liability company or partnership who are partners or retired
partners of such partnership or members or retired members of such limited liability company (including spouses and lineal descendants and siblings of such partners, members or spouses who acquire Registrable Securities by gift, will or intestate
succession) shall be aggregated together and with the partnership or limited liability company or partnership; provided, that all assignees and transferees who would not qualify individually for assignment of registration rights
shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under this Section 1. For sake of clarity, the foregoing assignment rights do not eliminate or modify any other restrictions
on transfer or assignment with respect to the Registrable Securities set forth in other agreements between a Holder and the Company. 

1.13 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior
written consent of Investors holding at least a majority of the Registrable Securities then outstanding, grant any holder or prospective holder of any securities of the Company any registration rights superior to or pari passu with those of the
Investors. The addition of new Investors under the Purchase Agreement who become parties to this Agreement shall not be considered a violation of this provision. 

  
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 1.14 “Market Stand-Off” Agreement. Each Holder hereby agrees that it will not,
without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company’s initial public offering and ending on the date specified by the Company and the managing
underwriter (such period not to exceed 180 days) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise
transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock (whether such shares or any such securities are then owned by the Holder or are thereafter
acquired), or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (i) or
(ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing provisions of this Section 1.14 shall apply only to the Company’s IPO, shall not apply to the sale of any shares to
an underwriter pursuant to an underwriting agreement and shall only be applicable to the Holders if all officers, directors and greater than 1% stockholders of the Company enter into similar agreements. Furthermore, the Company and any underwriter
will not release any officer, director or greater than 1% stockholder, in whole or in part, from their market stand-off obligations unless a proportionate amount of Registrable Securities held by each Holder is also released. The underwriters in
connection with the Company’s IPO are intended third party beneficiaries of this Section 1.14 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. In order to enforce the
foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such
period. 
 1.15 Termination of Registration Rights. 

(a) No Holder shall be entitled to exercise any right provided for in this Section 1 after seven years after the IPO. 

(b) No Holder shall be entitled to exercise any right provided for in this Section 1 if the total number of shares held by all Holders
is less than 1% of the number of outstanding shares of capital stock of the Company on a fully-diluted basis. 
 (c) In addition, the right
of any Holder to request registration or inclusion in any registration pursuant to this Agreement shall terminate after the IPO if all shares of Registrable Securities held or entitled to be held upon conversion by such Holder can be sold in any
three-month period without registration in compliance with Rule 144 of the Act. 
 (d) Any amendment or waiver of this Section 1.15
must be approved by all Holders who will be effected by such amendment or waiver. 
 2. Rights of First Offer. 

2.1 Subsequent Offerings. Subject to the terms and conditions set forth in this Section 2.1, each Investor that holds at least
100,000 shares of Series A Preferred Stock (as adjusted for any stock splits, dividends, recapitalizations, combinations and the like) (a “Major Investor”)  

  
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shall have a right of first offer with respect to his Pro Rata Share (as defined below) of all sales by the Company, after the date hereof, of Equity Securities (as defined below). For the
purposes of this Section 2.1, a Major Investor’s “Pro Rata Share” is equal to the ratio of (i) the number of shares of Common Stock then held by such Major Investor including shares issuable upon conversion of any
Series A Preferred Stock then held by such Investor to (ii) the total number of shares of Common Stock outstanding, including the shares of Common Stock issuable upon conversion or exercise of all outstanding options, warrants and securities
convertible into Common Stock including the Series A Preferred Stock, on such date (immediately prior to the issuance of the Equity Securities). 

2.2 Exercise of Rights. If the Company proposes to issue any shares of, or securities, options or warrants convertible into or
exercisable for any shares of, any class of its capital stock (“Equity Securities”), other than those excluded under Section 2.7, the Company shall first give each Major Investor written notice describing the Company’s
intention to issue such Equity Securities, the type of Equity Securities, the number of such Equity Securities to be offered and the price and terms, if known, upon which the Company proposes to offer such Equity Securities. Each Major Investor
shall have 20 days from the date of such notice to agree to purchase an amount up to his Pro Rata Share of the Equity Securities for the price and upon the terms and conditions specified in the notice by giving written notice to the Company and
stating therein the quantity of Equity Securities to be purchased. Notwithstanding the foregoing, the Company shall not be required to offer or sell such Equity Securities to any such Major Investor who would cause the Company to be in violation of
applicable federal or state securities laws by virtue of such offer or sale. 
 2.3 Issuance of Equity Securities to Other
Persons. If the Major Investors fail to exercise in full the rights of first offer, the Company shall have 45 days following expiration of the period provided in Section 2.2 to offer and issue to any person or persons the Equity Securities
in respect of which such Major Investors’ rights were not exercised, at a price not less than and upon terms and conditions no more favorable to the purchasers thereof than specified in the Company’s notice to such Major Investors pursuant
to Section 2.2 hereof. If the Company has not entered into an agreement for the sale of such Equity Securities within such 45-day period or if such agreement is not consummated within 30 days of the execution thereof or as otherwise stated in
the notice given by the Company pursuant to Section 2.2 above, the Company shall not thereafter offer any Equity Securities without first offering such securities to such Major Investors in the manner provided above. 

2.4 Termination of Rights of First Offer. The rights of first offer set forth in this Section 2 shall not apply to and shall
terminate upon the closing of an IPO. 
 2.5 Waiver of Rights of First Offer. The rights of first offer set forth in this
Section 2 may be waived or the time periods for notice shortened with respect to a particular transaction upon the vote or written consent of holders of at least majority of the outstanding Series A Preferred Stock (including Common Stock
issued upon conversion thereof) held by the Investors. 
 2.6 Transfer of Rights of First Offer. The rights of first offer set
forth in this Section 2 may be transferred to the same parties, subject to the same restrictions as any transfer of registration rights pursuant to Section 1.12. 

  
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 2.7 Excluded Securities. The rights of first offer set forth in this Section 2
shall not apply to: 
 (a) shares of Common Stock issued upon conversion of the Series A Preferred Stock; 

(b) any shares of Common Stock (and/or options, warrants or other Common Stock purchase rights issued pursuant to such options, warrants or
other rights) issued or to be issued to employees, officers or directors of, or consultants or advisors to the Company or any subsidiary, pursuant to stock purchase or stock option plans or other arrangements that are approved by the Board of
Directors; 
 (c) any Equity Securities issuable or issued to financial institutions, customers, partners, vendors, lenders, developers,
equipment lessors or lessors in connection with commercial arrangements, equipment financings, lease transactions or similar transactions pursuant to arrangements or agreements, not to exceed, in the aggregate, 15% of the outstanding shares of
Common Stock (including shares of Common Stock issuable upon conversion of the Series A Preferred Stock) on the date of the final sale by the Company of Series A Preferred Stock, and in each case which has been approved by the Board; 

(d) any Equity Securities issued for consideration other than cash in connection with an acquisition by the Company, whether by merger,
consolidation, sale of assets or sale or exchange of stock, in each case which has been approved by the Board; 
 (e) shares of Common
Stock offered in connection with the IPO; and 
 (f) any Equity Securities issued in connection with any stock split, stock dividend or
recapitalization by the Company. 
 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 permitted 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 California as applied to agreements
among California residents entered into and to be performed entirely within California, without regard to principles of conflicts of law. 

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. 

  
 -13- 

 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 required or permitted hereunder shall be in writing and shall be personally delivered, sent by facsimile, mailed by registered or certified mail, postage prepaid, return receipt requested, or delivered by a
nationally recognized overnight courier, addressed (a) if to an Investor, at such Investor’s address or facsimile number set forth on the signature pages, or at such other address or facsimile number as such Investor shall have furnished
to the Company in writing, or (b) if to the Company, at its address or facsimile number set forth on the signature page of this Agreement addressed to the attention of the Corporate Secretary, or at such other address or facsimile number as the
Company shall have furnished to the Investors, with a copy to John B. Montgomery, Montgomery Law Group, LLP at 525 Middlefield Road, Suite 250, Menlo Park, California 94025. Any such notice or communication shall be deemed to have been received
(a) in the case of personal delivery or delivery by facsimile machine, on the date of such delivery, provided that in the case of facsimile a written receipt of successful transmission is obtained, (b) in the case of a
nationally-recognized overnight courier, on the next business day after the date when sent, and (c) in the case of mailing, on the third business day following that on which the piece of mail containing such communication is posted. 

3.6 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 Investors holding at least a majority of the Registrable Securities (or with respect to Section 3,
Investors holding at least a majority of the Shares). Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Holder of any Registrable Securities (or Shares, as the case may be) then outstanding, each future
holder of all such Registrable Securities (or Shares, as the case may be), and the Company; provided, however, that, if an amendment or waiver would adversely affect a Holder in a manner that is different
from other Holders, then the written consent of such adversely affected Holder shall be required. 
 3.7 Severability. If any
provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision, and the parties agree to negotiate, in good
faith, a legal and enforceable substitute provision which most nearly effects the parties’ intent in entering into this Agreement. 

3.8 Aggregation of Stock. All shares of Registrable Securities (or, with respect to Section 3, all Shares) held or acquired by
affiliated entities or persons (including partners of a partnership, limited partners of a limited partnership or members of a limited liability company) shall be aggregated together for the purpose of determining the availability of any rights
under this Agreement. 
 3.9 Entire Agreement. This Agreement, together with the Purchase Agreement and the other documents
delivered pursuant thereto, constitute the entire understanding and agreement among the parties with regard to the subjects hereof and thereof, and supersede any prior agreements or understandings with respect thereto. 

  
 -14- 

 3.10 Facsimile Execution and Delivery. A facsimile, telecopy or other reproduction of this
Agreement may be executed by one or more parties hereto, and an executed copy of this Agreement may be delivered by one or more parties hereto by facsimile, pdf file or similar electronic transmission device pursuant to which the signature of or on
behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. 

[remainder of page intentionally left blank] 

  
 -15- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year indicated
above. 
  

			
	COMPANY:
	
	 ARASTRA, INC.,
  

a California corporation

		
	By:	 	  /s/ John Montgomery

	Name:	 	John Montgomery, Secretary
	
	INVESTORS:
	
	ANDREAS BECHTOLSHEIM
		
	By:	 	  /s/ Andreas Bechtolsheim

		
	Address:	 	
		
	Tel:	 	(        )          -         
		
	Fax:	 	(        )          -         
	
	DAVID CHERITON
		
	By:	 	  /s/ David Cheriton

		
	Address:	 	
		
	Tel:	 	(        )          -         
		
	Fax:	 	(        )          -         

 SCHEDULE A 

LIST OF INVESTORS 
 Andreas Bechtolsheim

 David Cheriton

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