Document:

MOBEEGQ
EXCLUSIVE IMPORT & DISTRIBUTION AGREEMENT

 

This
Distribution Agreement (“Agreement”) is entered into as of the later of the two signature
dates set forth below (“Effective Date”), by and between Batterfly Energy, Ltd., a company organized
under the laws of the State of Israel, with its principal place of business at Meshek 86, Shetulim 79280 Israel ( Company
); and Mobeego Scotland Ltd, a company organized under the laws of Scotland, with its principal place of business at Block
1 Unit 2, Thornliebank Ind Est, Glasgow G46 8QG (“Importer & Distributor ).

 

WHEREAS.
Company is engaged in the development and manufacturing of its proprietary Products (as defined
hereunder); and

 

WHEREAS.
Importer / Distributor wishes to acquire an exclusive, non-transferable right to Import,
promote, market and resell the Products in the Territory (as defined hereunder); and

 

WHEREAS.
Importer / Distributor declares it has the knowledge, experience, ability and financial capability to
perform the obligations herein; and

 

WHEREAS,
Company has agreed, on the basis of Distributor’s representations herein, to grant the Importer, Distributor certain
reselling rights, as further described hereunder;

 

NOW,
THEREFORE, in consideration of the foregoing premises and agreements hereinafter contained, the parties mutually agree as
follows:

 

1.
DEFINITIONS. For purposes of this Agreement (including any and all Appendices and amendments made to or incorporated
herein now or in the future), the following capitalized terms shall have the followingmeanings:

 

	 	1.1.	“Annual”
    or “Annually” means each 12-month period beginning on the Effective Date. For clarity, it does not
    refer to the calendar year of January 1 to December 31.
	 	 	 
	 	1.2.	“Balance”
    shall have the meaning set forth in Section 4.3.
	 	 	 
	 	1.3.	“Business
    Day” means Monday through Friday, excluding holidays in [UK] and Israel.
	 	 	 
	 	1.4.	“Confidential
    Information” means all information and/or data, in any form whatsoever, tangible or intangible, including information
    in oral, visual or computer database form, not generally made available by the disclosing party to the general public. By
    way of illustration and not limitation, such Confidential Information shall include: (1) any and all trade secrets concerning
    the business or affairs of Company, its product architecture, designs or specifications, data, know-how, compositions, processes,
    formulas, methods, samples, inventions and ideas, past, current and planned development or experimental work, current and
    planned distribution methods and processes, customer lists, current and anticipated customer requirements, price lists, market
    studies, business plans, computer software and programs (including object code and source code), any unannounced product(s)
    and service(s), and any other information, however documented; (2) any and all information concerning the business and affairs
    of the disclosing party (which includes historical financial statements, financial projections and budgets, historical and
    projected sales, capital spending budgets and plans, the names and backgrounds of key personnel, personnel training and techniques
    and materials), however documented; and (3) any and all notes, analyses, compilations, studies, summaries and other material
    prepared by or for the receiving party containing or based, in whole or in part, on any information included in the foregoing.
	 	 	 
	 	 	Confidential
    Information excludes information which: (i) at the time of disclosure is or thereafter becomes generally available to the
    public other than as a result of disclosure by or through the receiving party; (ii) was available to the receiving party on
    a non-confidential basis prior to disclosure by the disclosing party as evidenced by the receiving party’s documentation;
    or (iii) becomes available to the receiving party on a non-confidential basis from a third party which is not under any confidentiality
    obligation.
	 	 	 
	 	1.5.	“Customer”
    means a third party who purchases Products from Importer / Distributor within the Territory for their own internal use
    and not be resale, redistribution or further transfer to others, with or without consideration.
	 	 	 
	 	1.6.	“Delivery
    Point” shall have the meaning set forth in Section 5.3.
	 	 	 
	 	1.7.	“Documentation”
    means the technical documentation of Products covered under this Agreement.

 

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	 	1.8.	“First
    Renewal Term” shall have the meaning set forth in Section 12.1.
	 	 	 
	 	1.9.	“Intellectual
    Propertv Rights” or “11* Rights” means all designs, patents, patentable inventions, patent applications
    and patent disclosures, together with all reissuances, continuations, continuation-in-part, revisions, extensions and reexaminations
    thereof, trademarks and service marks (registered, and unregistered, and applications therefor), domain names, copyrights,
    know-how or trade secrets (and the right to limit the use or disclosure thereof), and all other proprietary rights, industrial
    rights and any other similar rights, in each case on a worldwide basis, and all copies and tangible embodiments thereof, or
    any part thereof, in whatever form or medium.
	 	 	 
	 	1.10.	“Products”
    means Company’s disposable chargers and batteries for mobile phones and all related accessories and Documentation,
    as listed in Appendix A, as such may be amended at a later date during the term of this Agreement.
	 	 	 
	 	1.11.	“Quarter”
    or “Quarterly” means each 3-month period beginning on the Effective Date. For clarity, it does not
    refer to the calendar quarters of January 1 to March 31, etc.
	 	 	 
	 	1.12.	“Second
    Renewal Term” shall have the meaning set forth in Section 12.1.
	 	 	 
	 	1.13.	“Territory”
    means the countries or jurisdictions (including without limitation and subject to any exclusions thereof) as specified
    in Appendix B.
	 	 	 
	 	1.14.	“Updated
    Price List” shall have the meaning set forth in Section 4.1.

 

2.
APPOINTMENT

 

	 	2.1.	Exclusive
    Rights. Subject to the terms and conditions set forth herein, Company hereby grants Distributor an exclusive, non-transferable,
    non-sub licensable, limited right during the term of this Agreement to market, sell and resell the Products in the Territory
    solely for use by Customers, and use Company Trademarks in the Territory in connection with marketing, selling and distributing
    the Products; all in accordance with the terms set forth herein (“Exclusive Rights”). It is hereby clarified
    and agreed that Company may be entitled to exclude from the Exclusive Rights any jurisdiction and/or entities, as set forth
    in Appendix B.
	 	 	 
	 	2.2.	Sales
    Outside Territory. Distributor shall not actively solicit sales of or promote the Products outside the Territory without
    the prior written consent of Company. Should Distributor be approached by any third party from outside the Territory for the
    purchase of Products, Distributor shall forthwith notify Company and shall either refer such party to Company or take an order
    from such party, all as shall be directed by Company in writing and at its sole discretion.
	 	 	 
	 	2.3.	Responsibility
    for Employees and Compensation. Each party shall be responsible for the payment of all compensation due to its employees
    and any related payments, including all local income taxes, social security, unemployment compensation, workers’ compensation
    and insurance coverage. Each party may hire its own employees to assist it in the performance of its duties hereunder, but
    such employees shall be solely the responsibility of the respective party.

 

3.
SALES AND MARKETING PLAN

 

	 	3.1.	General.
    Distributor shall create a marketing plan in order to distribute and procure sales for the Products in order to at least meet
    the Minimum Annual Sales and Minimum Quarterly Sales (both as defined below in Appendix C), to
    actively promote and create demand for the Products, maintain an adequate sales organization in the Territory, and to assure
    adequate advisory, installation, maintenance and support services to be provided only by such team trained by the Distributor
    (“Marketing Plan”). The agreed-upon Marketing Plan, and each Quarterly update (as described in Section
    3.3) is hereby attached in Appendix D. For the avoidance of doubt Marketing Plan and its Quarterly updates (as
    described in Section 3.3 below) must be approved in advance by Company.
	 	 	 
	 	3.2.	Cost
    of Marketing & Distribution. Unless otherwise agreed by the parties, all costs relating to Marketing Plan and distribution
    of the Products and Documentation shall be borne solely by Distributor.
	 	 	 
	 	3.3.	Quarterly
    Reports. Distributor shall submit to Company Quarterly sales reports detailing, among other things: (i) orders won or
    lost; (ii) a list of all Products sold and delivered to Customers during the preceding reporting period and the payment received
    and/or receivable therefor; and (iii) a list of all Products remaining in Distributor’s inventory. In addition, the
    Distributor shall update the Marketing Plan each Quarter to include its forecast for sales and other activities for the following
    12 months.

 

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	 	3.4.	Packaging.
    Labeling & Re-Labeling Prohibition. Distributor shall distribute Products with all original packaging, labeling, warranties,
    disclaimers and Documentation intact, as provided to it by Company and in accordance with this Agreement. Distributor shall
    not re-label any Product.
	 	 	 
	 	3.5.	General
    Marketing Practices. Distributor shall at all times act in furtherance of the best interest of Company and at no time
    do, cause or permit to be done, publish or say, any information, act, or thing from whatever source, which may be detrimental
    to the best interest and/or business reputation of Company. Distributor acknowledges and represents that it may not make any
    commitment, warranty, or binding obligation on behalf of Company and that in performing its activities under this Agreement
    it shall not make any false or misleading representations with respect to the Products and/or Company.
	 	 	 
	 	3.6.	Compliance
    with Law. Distributor shall be fully responsible to obtain and provide for itself, at its own cost, with any and all registrations,
    licenses, permits, certificates and all other documentation and information required for the exportation, importation, storage,
    marketing and distribution of the Products in the Territory and their sales therein.
	 	 	 
	 	3.7.	Export
    Compliance. Without derogating from the above, Distributor shall be subject to the laws and regulations of the Territory
    and any other applicable laws and regulations, as well as other applicable export regulations as shall, from time to time,
    govern the license and delivery of technology abroad, and any successor legislation. Distributor shall certify that it shall
    not, directly or indirectly, export, re-export or transship the Products or any parts or copies thereof in such manner as
    to violate such laws and regulations in effect from time to time. Distributor shall indemnify and hold harmless Company from
    and against any and all losses, claims and expenses actually incurred by Company as a result of the breach of Distributor’s
    obligations under this Section 3.7.

 

4.
PRICES, MINIMUM ANNUAL SALES, MINIMUM QUARTERLY SALES AND TERMS OF PAYMENT

 

	 	4.1.	Price
    List, Minimum Annual Sales and Minimum Quarterly Sales. The current Distributor prices to be paid to Company for Products,
    minimum Annual sales and minimum Quarterly sales for the Term (as defined below) are specified in Appendix
    C attached hereto (“Price List, Minimum Annual Sales and Minimum Quarterly Sales”). The Distributor
    must order from Company at least the Minimum Annual Sales in the Initial Term and each Renewal Term, and the Minimum Quarterly
    Sales in each Quarter in the Initial Term and each Renewal Term. Company may, once during the Initial Term and once during
    the First Renewal Term, upon written notice to Distributor, change the prices to be paid to Company for the Products (“Updated
    Price List”). For the avoidance of doubt, it is hereby clarified that if Company sends an Updated Price List during
    the Initial Term, it shall apply to Products ordered during the First Renewal Term, and if Company sends an Updated Price
    List during the First Renewal Term, it shall apply to Products ordered during the Second Renewal Term.
	 	 	 
	 	4.2.	Pricing
    & Fee Collection from Customers. Distributor shall be entitled to establish the prices and payment terms and conditions
    at which it resells the Products to its Customers; provided however that Material Deviations from the suggested retail prices
    for Customers (“Suggested Retail Prices”) set forth in the Price List in Appendix C
    will be subject to Company’s prior written consent. For the purpose of this Section 4.2, “Material Deviations”
    shall mean a variation up or down in the Suggested Retail Prices of greater than ten (10) percent. The parties agree that
    the Suggested Retail Prices will be adjusted for the First Renewal Term and Second Renewal Term by the same percentage, if
    any, that the Updated Price List changes during the First Renewal Term and Second Renewal Term.
	 	 	 
	 	4.3.	Payment
    Terms. Subject to Section 4.4 (Letter of Credit), Distributor will submit written purchase orders to Company for the Products,
    and Company will issue an invoice to Distributor immediately upon approval of each order. Company will use commercially reasonable
    efforts to accept orders for up to 200% of the Minimum Quarterly Sales in any Quarter. Distributor will pay in advance fifty
    percent (50%) (“Advance Payment”) of each accepted order (provided, however, Company may, in its sole discretion
    and in exceptional circumstances, require a higher percentage to be paid in advance). The remaining amount of Fifty percent
    (50%) of each order (the “Balance”) will be paid immediately by Distributor to Company upon delivery of
    the Products to Distributor at the Delivery Point (on an F.O.B basis). All payments will be made in U.S. Dollars. The Advance
    Payment shall be paid within two (2) Business Days of receipt of each invoice and by wire transfer (SWIFT/ IBAN)
    to Company s designated account. Distributor shall not be permitted to offset any credits or amounts owed to it against any
    amounts owed to Company, without prior written authorization by Company.

 

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	 	4.4.	Letter
    of Credit. Prior to Distributor’s submission of’ any purchase order, Company may require Distributor to cause
    an irrevocable, nonrefundable (except in the event of defective, damaged or leaking Products, as specified in Section 5.5
    below) standby letter of credit in an amount (up to the Balance of the applicable purchase order(s)) to be issued by a bank
    acceptable to and approved in writing by Company. Such letter of credit will be payable on sight and will permit Company to
    draw funds if Distributor fails to pay the Balance, upon delivery of the Products to Distributor at the Delivery Point as
    set forth in Section 4.3 above. Distributor shall at all times cause the amount of such letter of credit to be maintained
    at a level no less than the aggregate Balance. In the event that the value of orders placed by Distributor exceeds the then-current
    amount of the letter of credit, Company may require Distributor to increase the amount of the letter of credit to cover the
    amount of such excess prior to Company’s fulfillment of any such orders. Distributor will pay all costs of obtaining
    and maintaining the letter of credit. The parties will work together to establish the letter of credit on further mutually
    acceptable terms and conditions prior to fulfillment of the applicable order(s). This provision shall survive expiration or
    termination of this Agreement until such time as Distributor has paid to Company all amounts due to Company with respect to
    the applicable purchase order(s).
	 	 	 
	 	4.5.	Minimum
    Quantity Per Order. The Importer /Distributor hereby acknowledges and agrees that the minimum order for the Products
    is ten thousand (10,000) units (“Minimum Quantity Per Order”). Company may, in its sole discretion,
    accept an order which does not meet the Minimum Quantity Per Order requirement and Distributor hereby acknowledges and agrees
    that acceptance of said order may include additional costs.
	 	 	 
	 	 4.6.	Minimum
    Sales. The Distributor hereby agrees to purchase a minimum amount of Products from Company so as to meet or exceed the
    minimum purchase amount of Products required for each Quarter and for each Annual period. If Distributor has purchased Products
    in a Quarter in excess of the Minimum Quarterly Sales, then Distributor may apply such excess to meet its obligations in the
    immediately subsequent Quarter (but for clarity, not for any future Quarter.)
	 	 	 
	 	4.7.	Failure
    to Pay. If payment of any amount as set forth in this Section 4 becomes overdue, Distributor may be asked to pay interest
    at a rate of 1.5% per month (18% per annum) of such overdue amount prorated to the number of days of delay commencing on the
    day following the due date until the date of actual payment. Company reserves the right to withhold shipments to Distributor,
    and/or impose additional credit terms, in the event that any payments to Company are past due. Distributor shall pay all of
    Company’s costs and expenses (including reasonable attorney’s fees) incurred in connection with the enforcement
    of The Companies’ rights under this Section 4. In such case the shipment withholding will not be deemed as delayed shipment.
	 	 	 
	 	4.8.	Failure
    To Meet Minimum Amount. The failure to meet Minimum Quarterly Sales or Minimum Annual Sales shall constitute a material
    breach of this Agreement.
	 	 	 
	 	4.9.	Taxes.
    Product prices shall exclude any taxes, import duties, sales tax or similar taxes or duties including, without limitation,
    withholding, customs, excise, sales, use, value-added and property taxes levied by any country upon Company or the Products,
    as the result of any manufacturing, sale, delivery or use of any Product sold hereunder. Distributor shall be responsible
    for the payment of all such taxes or duties which may be so levied and to the extent that Distributor is required to withhold
    amounts from fees due to Company, Distributor shall gross up any amounts due to Company so that the net amount paid to Company
    is the amount set forth in the Price List.
	 	 	 
	 	4.10.	Expenses.
    Except as expressly provided in this Agreement, each party shall bear all its own expenses incurred in rendering performance
    of this Agreement.

 

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5.
ORDER PROCEDURE AND DELIVERY

 

	 	5.1.
    	Purchase
    Orders. Distributor shall initiate orders for Products by sending a purchase order to Company by email or fax, stating
    the number of Products that Distributor desires to receive. Each purchase order shall include the following: (i) reference
    to this Agreement; (ii) number of Products ordered; (iii) requested delivery date (on an F.O.B basis) based on Company’s
    applicable lead times; (iv) Product unit prices and total amount of purchase order price; and (v) all information necessary
    for shipment. The parties agree that the terms and conditions contained in this Agreement shall prevail over any terms and
    conditions of any such purchase order, acknowledgment form or other instrument, except that specific commercial terms (prices,
    delivery terms, etc.) set forth in a purchase order shall, if they are accepted by Company, prevail over any conflicting commercial
    terms in this Agreement. Distributor’s purchase orders shall constitute binding commitments to accept the number and
    type of Products stated therein, in accordance with the terms and conditions of this Agreement. Any requested modifications
    to an accepted purchase order shall be submitted by Distributor to Company in writing and Company shall either accept or reject
    such requested modifications at Company’s sole discretion.
	 	 	 
	 	5.2.
    	Purchase
    Order Acknowledgement & Acceptance. Company shall provide Distributor with an initial acknowledgement of the receipt
    of a purchase order soon after receipt; formal acceptance or rejection of the terms of a purchase order shall be provided
    by Company thereafter. A purchase order shall be deemed to be accepted only upon written acceptance thereof by Company.
	 	 	 
	 	5.3	Lead
    Times and Delivery; Title to Products. Unless explicitly set forth otherwise in a written purchase order, Product lead
    times shall be in accordance with Company’s lead time policy attached hereto as Appendix E. Products shall
    be delivered F.O.B (Incoterms 2010), at Company’s factory or Company’s designated logistics center, as
    set forth in the applicable purchase order (“Delivery Point”). Risk of loss with respect to the Products
    shall pass to Distributor at the Delivery Point, and title to the Products shall pass upon full payment thereof to Company.
    Delivery dates shall be agreed upon by the parties on a case-by-case basis per purchase order. Company shall devote its reasonable
    efforts to deliver the Products ordered in accordance with the delivery dates agreed upon. If delivery by Company is not anticipated
    within the time frame set forth in the applicable purchase order, Company shall notify Distributor of such delay. Company
    may withhold shipment of Products due to an unpaid balance in Distributor’s account, or dependent on a requirement that
    Distributor pay prior to Delivery, if it determines that there is a reasonable risk of non-payment.
	 	 	 
	 	5.4.	Cancellation
    Policies. Company’s cancellation policy is set forth in Appendix F attached hereto. Orders
    may be partially or entirely cancelled prior to shipment only in accordance with Company’s cancellation policies.
	 	 	 
	 	5.5.	Inspection
    by Distributor. Importer/Distributor agrees to receive, inspect and accept shipments made pursuant to each purchase order.
    Importer / Distributor shall inspect the Products upon delivery at the Delivery Point and notify Company of any discrepancies
    in the list of materials shipped, or of any defective, damaged or leaking Products which would be evident from physical inspection.
    Products delivered or offered for delivery in a damaged condition shall be rejected and returned to Company with such documentation
    as may reasonably be required by Company. Importers / Distributor’s failure to notify Company, upon delivery at the
    Delivery Point of any visible deficiencies shall be deemed as an acceptance by Distributor of the Product.
	 	 	 
	 	5.6.	No
    Contingencies. Importers / Distributor’s payment obligations hereunder are not contingent in any way upon receipt
    of payment by Distributor from Customers or any third party, and Distributor shall be solely responsible for any financial
    loss suffered as a result of any failure by Distributor to receive payment or reimbursement for Products sold to Customers.
	 	 	 
	 	5.7.	Product
    Discontinuance and Changes. Company shall have the right, in its sole discretion, to modify, or improve any or all of
    the Products, and shall have the right to discontinue specific Products. Company shall use commercially reasonable efforts
    to provide at least ninety (90) days prior written notice to Distributor prior to discontinuing a Product.

 

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6.
USE OF NAME AND TRADE MARKS

 

	 	6.1.
    	Company
    Trademarks. Subject to the terms and conditions of this Agreement, Company hereby grants to Distributor a limited, royalty-free,
    exclusive, non-transferable, right and license within the Territory to use and display the trademarks, trade names, service
    marks and logos owned or licensed by Company (collectively, the “Company Trademarks”), solely for purposes
    of marketing and promoting the Products to Customers in the Territory and solely in connection with marketing materials approved
    by Company. Distributor shall comply with Company’s trademark usage practice or any trademark usage guidelines or instructions
    that Company may provide Distributor from time to time and Distributor shall afford Company reasonable opportunities to inspect
    and monitor the activities of Distributor in order to ensure that Distributor’s use of Company Trademarks meets such
    guidelines. Distributor hereby acknowledges the existence and validity of Company Trademarks, and agrees that all goodwill
    associated with Distributor’s use of Company Trademarks shall inure solely to the benefit of Company. Distributor shall
    not remove, alter or obscure the TM, ®, (SM), CE or any other markings from the Products, Documentation or any marketing
    literature. Distributor may identify itself as an exclusive Distributor of Company, but shall not use Company Trademarks in
    its corporate name or in any way state, represent or otherwise imply that its relationship to Company is anything other than
    an independent authorized and exclusive Distributor of Company.
	 	 	 
	 	6.2.
    	No
    Transfer of Title. Company shall retain sole ownership of Company Trademarks and all goodwill associated with Distributor’s
    use of such Company Trademarks and the Products.

 

7.
INTELLECTUAL PROPERTY RIGHTS

 

	 	7.1.	Ownership
    Rights. All Intellectual Property Rights evidenced by or embodied in or related to the Products, Company’s Confidential
    Information, the Documentation and Company Trademarks shall be owned solely by Company. Distributor acknowledges that except
    as expressly provided hereunder in connection with the distribution of the Products, Company does not license any of its Intellectual
    Property Rights to Distributor hereunder, and that Distributor has not, does not, and shall not under any circumstances acquire
    any rights with respect to the above. To the extent that Distributor or its employees, contractors or subcontractors participate
    in enhancements, derivatives, new versions, or improvements to the Products or Documentation (“Modifications”),
    Distributor, on behalf of itself and its employees, contractors and subcontractors, shall and hereby does assign to Company
    all right, title and interest, including all Intellectual Property Rights, in and to the Modifications.
	 	 	 
	 	7.2.	Patent
    Notice. If required, and in order to protect Company’s IP Rights, Distributor agrees, where applicable, that a valid
    patent notice for the Products will appear on any: (i) media for the Products and any Customer packaging materials associated
    therein; and (ii) Documentation and promotional material for the Products.
	 	 	 
	 	7.3.	Distributor’s
    Obligations. Distributor shall: (i) refrain from copying, reverse engineering, disassembling, de-compiling, translating
    or modifying the Products or any part thereof or granting any other person the right to do so; (ii) not represent that it
    possesses any proprietary interest in the Products; (iii) not directly or indirectly, take any action to contest Company’s
    IP Rights or infringe them in any way; (iv) not register, nor have registered or attempt to register, Company Trademarks (or
    which are similar to Company Trademarks); (v) not register or attempt to register any domain name using any of Company Trademarks
    without Company’s prior written consent; and (vi) save for the specific purpose contained in this Agreement, it shall
    not use Company Trademarks in any manner whatsoever.
	 	 	 
	 	7.4.	Notification.
    Distributor shall promptly notify Company of: (i) any claims, allegations or notification that its marketing, licensing, support
    or service of the Products may or will infringe the Intellectual Property Rights of any other person; and (ii) any determination,
    discovery or notification that any person is or may be infringing the Intellectual Property Rights of Company. Distributor
    shall not take any legal action relating to the protection or defense of any Intellectual Property Rights of Company without
    the prior written approval of Company. Distributor shall assist in the protection and defense of such Intellectual Property
    Rights.

 

	8.	CONFIDENTIAL
INFORMATION. During the term of this Agreement and thereafter, the receiving party shall not use Confidential Information
received from the disclosing party, other than in accordance with this Agreement and in fulfillment of the purpose of this Agreement.
The receiving party shall maintain Confidential Information in the strictest confidence unless or until it shall have been made
public. The receiving party shall not disclose Confidential Information to any third party and shall use all reasonable precautions
to ensure that all such Confidential Information is properly protected and kept from unauthorized persons or disclosure. The receiving
party may, however, disclose Confidential Information to its own personnel on a “need to know” basis, and to the extent
necessary for the purpose of this Agreement, provided that it shall be responsible for compliance of its personnel with the provisions
of this section and shall remain liable for any acts and omissions by its personnel in connection with the protection and use
of the Confidential Information.

 

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9.
LIMITED WARRANTY & DISCLAIMER

 

	 	9.1.	Distributor
    Representations. Distributor represents and warrants that: (i) it has full right, power and authority necessary to enter
    into and perform this Agreement; (ii) this Agreement has been duly executed and delivered and is the valid and binding obligation
    of Distributor, enforceable in accordance with its terms; and (iii) the performance of its obligations hereunder will not
    violate any applicable laws or regulations, or cause a breach of any agreements with or infringe the rights of any third parties.
	 	 	 
	 	9.2.	Limited
    Warranty. EXCEPT FOR THE LIMITED WARRANTY PROVIDED HEREIN AND TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, COMPANY
    DISCLAIMS ALL REPRESENTATIONS. WARRANTIES OR CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY. WITH RESPECT TO THE PRODUCTS.
    INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OR CONDITIONS OF SATISFACTORY QUALITY, NONINFRINGEMENT, MERCHANTABILITY OR FITNESS
    FOR A PARTICULAR PURPOSE AND THOSE ARISING OUT OF STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF DEALING OR USAGE OF 1 RADE.
    Without derogating from the above, Company will replace defective, damaged or leaking Products, provided however that: (a)
    any such defective, damaged or leaking Products must be provided to Company in its original packaging as proof of claim; (b)
    said defect, damage or leakage are not caused by noncompliance with the “Instructions for Use” of the Products,
    specified in Annendix G attached hereto; (c) Products were sold to Customers prior to the expiration date of
    the Products, as evidenced Distributor’ s written records; and (d) Distributor will receive an RMA (Returned Merchandise Authorization)
    from Company prior to returning it; and (e) Distributor will bear all costs associated with, or derived from, such replacement.

 

10.
LIMITATION OF LIABILITY

 

	 	10.1.	Exclusion
    of Indirect Damages. IN NO EVENT SHALL COMPANY OR ITS AFFILIATES BE LIABLE OR RESPONSIBLE TO DISTRIBUTOR OR ANY THIRD
    PARTY FOR ANY TYPE OF INCIDENTAL, PUNITIVE, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOST
    REVENUE OR LOST PROFITS, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER ARISING UNDER THEORY OF CONTRACT, TORT
    (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.
	 	 	 
	 	10.2.	Limitation
    of Liability. EXCEPT IN THE EVENT OF DEATH OR PERSONAL INJURY, COMPANY’S ENTIRE LIABILITY TO DISTRIBUTOR OR ANY
    THIRD PARTY ARISING FROM OR RELATED TO THIS AGREEMENT AND/OR THE PRODUCTS SHALL BE LIMITED TO THE AMOUNTS ACTUALLY RECEIVED
    BY COMPANY FROM DISTRIBUTOR PURSUANT TO THE PURCHASE ORDER THAT GAVE RISE TO THE CLAIM, AND IF NO SPECIFIC PURCHASE ORDER
    IS APPLICABLE THEN COMPANY’S ENTIRE LIABILITY SHALL NOT EXCEED THE AMOUNTS ACTUALLY RECEIVED BY COMPANY FROM DISTRIBUTOR
    DURING THE THREE (3) MONTH PERIOD PRIOR TO THE EVENT GIVING RISE TO THE CLAIM.

 

11.
INDEMNIFICATION

 

	 	11.1.	    Indemnification by Importer / Distributor. Importer/ Distributor shall indemnify and defend Company and its officers,
    directors and employees, from and against any losses, costs, damages, fees or expenses (including reasonable attorney’s
    fees) arising out of any third party claim to the extent relating: (i) any breach by the Distributor of any of its obligations,
    representations and warranties under this Agreement; (ii) the negligence, recklessness, or willful misconduct of the Distributor
    or its officers, employees or agents; (iii) any act or omission of the Distributor in relation to the storage or distribution
    of the Products.
	 	 	 
	 	11.2. 	Indemnification
    Procedures. As a condition to the defense and indemnity set forth above, the indemnified party shall: (i) give the indemnifying
    party a prompt written notice of any such claim made against it; provided, however, that the failure to give such notification
    shall not affect the indemnification provided hereunder except to the extent that the indemnifying party shall have been actually
    prejudiced as a result of such failure; (ii) grant the indemnifying party sole control of the defense of any such claim, suit
    or proceeding, including appeals, negotiations and any settlement or compromise thereof; provided that the indemnifying party
    shall not acquiesce to any judgment or enter into any settlement, either of which imposes any obligation or liability on an
    indemnified party without its prior written consent; and (iii) at the indemnifying party’s request and expense, provide
    such information and assistance in the defense of such claims, as reasonably requested by the indemnifying party.

 

    	7

    	 

    

 

12.
TERM AM) TERMINATION

 

	 	12.1.	Term.
    This Agreement shall continue in force for one (I) year as of the Effective Date (“Initial Term”). At the
    end of the Initial Term, this Agreement will be automatically renewed for an additional one (I) year (the “First
    Renewal Term”) and will be automatically renewed for an additional one (1) year at the end of the First Renewal
    Term (the “Second Renewal Term”) (each, a “Renewal Term”) (the Initial Term and all
    Renewal Terms, if any, arc collectively referred to as the “Term”), provided that (a) Distributor has performed
    all of its commitments and obligations under this Agreement to Company’s full satisfaction, (b) the parties agree in
    writing on the Updated Price List and Minimum Quarterly Sales and Minimum Annual Sales for each Renewal Term, and (c) Distributor
    has not notified Company in writing of its desire not to renew this Agreement, no later than two (2) months prior to the termination
    or expiration of the Initial Term or the then-current Renewal Term.
	 	 	 
	 	12.2.	Termination
    for Convenience. Following the Initial Term, this Agreement may be terminated by Company at any time for any reason with
    ninety (90) days written notice. Said termination shall become effective at the end of the ninety (90) day period; provided
    however that if Distributor is, at any time during the Initial Term or any Renewal Term, in material breach of any of Distributor’s
    commitments and obligations under this Agreement, Company may, at its sole discretion, and upon thirty (30) days written notice
    to Distributor, either terminate this Agreement or revoke the Exclusive Rights set forth in Section 2.1 above. It is further
    clarified that in the event Company chooses to terminate this Agreement due to said material breach by Distributor, Company
    will be entitled, in addition to any other compensation or remedies which it may have at law or equity or under this Agreement,
    to monetary compensation in an amount equal to 10% of the unpurchased Minimum Annual Sales for the remainder of the current
    Term. The parties agree that this amount is fair compensation for Company’s damage in light of the actual harm which
    Company is likely to incur and the difficulties of proving actual damage, and that this is a material term of this Agreement.
	 	 	 
	 	12.3.	Termination.
    This Agreement may be terminated: (i) by either party in the event that the other party has committed a material breach of
    any of its obligations hereunder that has not been cured within thirty (30) days after the breaching party has received notice
    thereof; or (ii) by Company, at its sole and absolute discretion (and with immediate effect as of the date Company informs
    Distributor of its decision), in case of a change in the ownership of the Distributor.
	 	 	 
	 	12.4.	Termination
    Upon Bankruptcy. Either party may, at its option, terminate this Agreement and/or suspend its performance upon provision
    of written notice in the event that: (i) the other party files a petition in bankruptcy, files a petition seeking any reorganization,
    arrangement, composition or similar relief under any law regarding insolvency or relief for debtors, or makes an assignment
    for the benefit of creditors; (ii) a receiver, trustee or similar officer is appointed for the business or property of such
    party; (iii) any involuntary petition or proceeding under bankruptcy or insolvency laws is instituted against such party and
    not stayed, enjoined or discharged within sixty (60) days; or (iv) the other party adopts a resolution for discontinuance
    of its business or for dissolution.
	 	 	 
	 	12.5.	Consequences.
    Upon termination of this Agreement, Distributor shall immediately discontinue all further promotion, marketing and support
    of the Products. Without limiting the generality of the foregoing, Distributor shall cease all display, advertising and use
    of all of Company’s Trademarks and will not thereafter use, advertise or display any Company Trademarks. Upon termination
    of this Agreement: (i) the due date of all outstanding payments shall automatically be accelerated and all such payments shall
    become immediately due and payable; (ii) all purchase orders or portions thereof remaining un-shipped as of the effective
    date of termination may be canceled by Company, at its option; (iii) Distributor shall promptly return to Company all Confidential
    Information and/or any such tangible property representing the disclosed Confidential Information and/or Intellectual Property
    Rights divulged by Company to Distributor pursuant to this Agreement and all copies thereof; and (iv) Distributor shall erase/delete
    any such Confidential Information held by it in electronic form.

 

    	8

    	 

    

 

	 	12.6.	Compensation
    Claims. The parties hereby acknowledge and agree that the Initial Term was deliberately set by the parties in order to
    allow for adequate compensation to Distributor in consideration for its efforts and investments with respect to the distribution
    of the Product in the Territory. In light of the foregoing, the parties explicitly agree that upon termination of this Agreement,
    Distributor shall not be entitled to make any compensation claims, including any claim for indemnification with regard to
    the loss of its customer base or any investments made in connection with this Agreement. I he foregoing shall be limited to
    the extent that mandatory legal provisions do not provide for such compensation.
	 	 	 
	 	12.7.
    	Survival.
    Notwithstanding any termination of this Agreement, Sections I, 4.5, 4.7, 4.8, 6.2, 7, 8, 10, 11, 12, 13, 14 and 15 shall survive
    and continue to be in effect in accordance with their terms.

 

13.FORCE
MAJEURE

 

	 	13.1.
    	Force
    Majeure Event. Neither party shall be liable to the other party for failure or delay in the performance of any of its
    obligations under this Agreement for the time and to the extent such failure or delay is caused by riots, civil commotions,
    wars, strikes, hostilities between nations, governmental laws, orders or regulations, embargoes, actions by a government or
    any agency thereof, acts of God, storms, fires, accidents, sabotages, explosions or any other conditions beyond the reasonable
    control of the respective parties (“Force Majeure Event”). In such events, the performance of obligations
    hereunder shall be suspended during, but not longer than, the period of existence of such cause and the period reasonably
    required to perform the obligations in such cases.
	 	 	 
	 	13.2.    	Cancellation.
    The party, in respect of which this Agreement cannot be performed because of a Force Majeure Event affecting the other party,
    is entitled to terminate this Agreement or part thereof where the Force Majeure Event continues for a period of sixty (60)
    days. In any event, before exercising its right of cancellation under this Section, the party requesting cancellation shall
    negotiate in good faith with the other party to reach an agreement not requiring termination.

 

14.NON-COMPETITION

 

	 	14.1.
    	Prohibited
    Activities. During the Term and for a period of six (6) months thereafter, Distributor shall not, whether directly or
    indirectly, whether by itself or through others, promote, offer, sell or provide products or services which compete with Company’s
    Products or services, unless Company provides its advance, express written consent. Distributor hereby acknowledges that the
    restrictions contained in this Section 15.1 are fair and reasonably required to protect the interest of Company. Company shall
    be entitled to obtain an injunction restraining any violation, further violation or threatened violation of the covenant set
    forth in this Section 15.1, in addition to any other remedies.
	 	 	 
	 	14.2.
    	Blue-Pencil.
    Notwithstanding anything contained in Section 15.1 to the contrary, if the scope or period of time specified herein shall
    be determined to be unreasonable in any judicial proceeding, then the scope and/or period of time of the restriction shall
    be reduced so that Section 15.1 may be enforced as shall be determined to be reasonable by such judicial proceeding

 

15.MISCELLANEOUS

 

	 	15.1.	No
    Conflict. Each party represents and warrants, on a present and ongoing basis, to the other party that its commitments
    and the rights and privileges granted herein do not conflict with any other agreement or legal obligation.
	 	 	 
	 	15.2.	Relationship
    of the Parties. In performing their respective services hereunder, Distributor and Company shall operate as and have the
    status of independent contractors and shall not act as or be an agent, partner or employee of the other. Neither party shall
    have any right or authority or assume or create any obligations or make any representations or warranties on behalf of the
    other party, whether expressed or implied, or to bind the other party in any respect whatsoever. Distributor shall be responsible
    for the payment of all compensation due to its employees and any related payments, including all local income taxes, social
    security, unemployment compensation, workers’ compensation and insurance coverage. Distributor may hire its own employees
    to assist it in the performance of its duties hereunder, but such employees shall be solely the responsibility of Distributor.
	 	 	 
	 	15.3.	Assignment.
    The rights of Distributor under this Agreement are restricted solely to Distributor and shall not be assigned, transferred,
    subleased, sublicensed, encumbered or subject to any security interest without the written authorization of Company. Any attempted
    assignment will be void and of no effect. Company shall be entitled to assign this Agreement, in whole or in part to any third
    party at its discretion.

 

    	9

    	 

    

 

	 	15.4.	Amendment.
    This Agreement may only be amended by an instrument in writing signed by each of the parties hereto.
	 	 	 
	 	15.5.	Waiver.
    Any waiver of any right or default hereunder shall be effective only if made in writing and in the instance given and shall
    not operate as or imply a waiver of any similar right or default on any subsequent occasion. No waiver by either party of
    any breach or series of breaches or defaults in performance by the other party, and no failure, refusal or neglect of either
    party to exercise any right, power or option given to it hereunder or to insist upon strict compliance with or performance
    of either party’s obligations under this Agreement, shall constitute a waiver of the provisions of this Agreement with
    respect to any subsequent breach thereof or a waiver by either party of its right at any time thereafter to require exact
    and strict compliance with the provisions thereof.
	 	 	 
	 	15.6.	Severability.
    Any clause, provision or portion of this Agreement found or ruled invalid, void, illegal or otherwise unenforceable under
    any law or by any court, arbitrator or other proceeding, shall be amended to the extent required to render it valid, legal
    and enforceable, or deleted if no such amendment is feasible, and such amendment or deletion shall not affect the enforceability
    of the other provisions hereof.
	 	 	 
	 	15.7.	Governing
    Law and Jurisdiction. This Agreement shall be governed by the laws of the State of Israel and excluding the Convention
    on Contracts for the International Sale of Goods and that body of law known as conflicts of laws. The courts of competent
    jurisdiction in Tel Aviv, Israel shall have the exclusive jurisdiction with respect to any dispute arising under or in connection
    with this Agreement.
	 	 	 
	 	15.8.	Appendices.
    All Appendices hereto are hereby incorporated by reference and made a part of this Agreement.
	 	 	 
	 	15.9.	Headings.
    The headings and sub-headings contained in this Agreement are for convenience and reference purposes only and shall not affect
    in any way the meaning or interpretation of this Agreement.
	 	 	 
	 	15.10.	Entire
    Agreement. The parties agree that this Agreement is the complete and exclusive statement of the agreement between the
    parties, which supersedes all prior agreements, oral or written, and all other communications between the parties relating
    to the subject matter of this Agreement.
	 	 	 
	 	15.11.
    	Notices.
    All notices or other communications hereunder shall be in writing and shall be given in person, by courier, by registered
    mail addressed as set forth in the heading of this Agreement or such other address as any party may designate to the other
    in accordance with this procedure. All communications delivered in person or by courier service shall be deemed to have been
    received upon delivery, and all notices and other communications sent by registered mail shall be deemed to have been received
    within three (3) Business Days after posting.

 

    	10

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective authorized representatives.

 

 

    	11

    	 

    

 

List
of Appendixes:

 

Appendix
A: Products Appendix B: Territory

 

Appendix
C: Price List. Minimum Annual Sales and Minimum Quarterly Sales

 

Appendix
D: Marketing Plan

 

Appendix
E: Lead Time Policy

 

Appendix
F: Cancellation Policy

 

Appendix
G: Instructions for Use

 

    	12

    	 

    

 

Annendix
A : Products

 

Products

 

	 	1.	mobeegoTM
    charger-

 

	 	a.	a
    package of X1  connector (lighting/30 pins/micro usb) + X1 can (figure A)
	 	 	 
	 	b.	packed
    and shipped in a ‘display carton’ of 10 pieces (figure B)

 

	 	*the
    package language will follow the distributor requirements

 

	 	2.	mobeegoTM
    can-

 

	 	a.	a
    single can without a package figure C)
	 	 	 
	 	b.	packed
    and shipped in a ‘display carton’ of 15 pieces (figure D)

 

	 	*the
    package language will follow the distributor requirements

 

	 	3.	mobeegoTM
    stand with recycling box-

 

	 	a.	an
    extra carton stand , will be supplied for free as required ,and up to a maximum of one stand per 200 mobeegoTM charger
    units ordered (figure E)

 

 

    	13

    	 

    

 

Appendix
B: Territory

 

Territory:
[UK]

 

With
respect to the Exclusivity Rights set forth in Section 2.1 to the Agreement, Territory shall exclude the following jurisdictions
and/or entities, which list may be amended by Company by notice to the Distributor:

 

	1.	Online
    sales
	 	 
	2.	International
    outlets (International outlets = which has stores also outside the UK)

 

    	14

    	 

    

 

Appendix
C; Price List, Minimum Annual Sales and Minimum Quarterly Sales

 

Price
List for Initial Term:

 

	Price
                                         per unit 
 [USD]
	 	 	mobeego
                                         can
 [in
                                         thousands]
	 	Price
                                         per unit
 [USD]
	 	 	mobeego
                                         charger
 [in
                                         thousands]

	 	1.45	 	 	10	 	 	2.8	 	 	10
	 	1.36	 	 	10-50	 	 	2.7	 	 	10-50
	 	1.3	 	 	50-200	 	 	2.6	 	 	50-200
	 	1.27	 	 	200-1000	 	 	2.5	 	 	200-1000
	 	1.2	 	 	Above
    1000	 	 	2.45	 	 	Above
    1000

 

Suggested
Retail Prices for Initial Term: [To be decided by Importer / Distributor in coordination with the company]

 

The
Minimum Annual Sales for the Initial Term is as follows: [352000] units

 

It
is hereby clarified and agreed that the Minimum Annual Sales for any Renewal Term must be agreed upon in writing by both parties.

 

The
Minimum Quarterly Sales in each Quarter of the Initial Term is as follows:

 

Ql:
[12000] units [i.e. 3.41% of Minimum Annual Sales].

 

Q2:
[100000] units [i.e. 28.5% of Minimum Annual Sales].

 

Q3:
[90000] units [i.e. 25.5% of Minimum Annual Sales].

 

Q4:
[150000] units [i.e. 42.6% of Minimum Annual Sales].

 

    	15

    	 

    

 

Appendix
D: Marketing Plan

 

[will
be added]

 

    	16

    	 

    

 

Appendix
E: Lend Time Policy

 

Standard
lead time for deliveries is 45 days from the Inter of order acceptance, or receipt of Advance Payment for such order.

 

The
above terms apply to orders of up to 200,000 Product units each. Lead times for orders of more than 200,000 Product units will
be agreed upon separately.

 

    	17

    	 

    

 

Appendix
F: Cancellation Policy

 

Company
may cancel an accepted order without penalty:

 

	 	●	If
    the manufacturer of the Products declares bankruptcy or is unable to deliver the Products in a timely manner, or if the agreement
    with the manufacturer of the Products is, for any reason, terminated. 
	 	 	 
	 	●	If
    either party has given a notice to terminate the Agreement.
	 	 	 
	 	●	If
    Distributor does not comply the payment terms for such order.

 

    	18

    	 

    

 

Appendix
G: Instructions for Use

 

    	19Exhibit 4.8

 Execution Version

 

Issuance Date: June 30, 2016

 

NEITHER THIS COMMON STOCK PURCHASE WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW.  NO SALE, TRANSFER, PLEDGE OR ASSIGNMENT OF THIS COMMON STOCK PURCHASE WARRANT OR OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF SHALL BE VALID OR EFFECTIVE UNLESS (A) SUCH TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAW, OR (B) THE HOLDER SHALL DELIVER TO THE COMPANY AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND OF ANY APPLICABLE STATE SECURITIES LAW.

 

PROFESSIONAL DIVERSITY NETWORK, INC.

COMMON STOCK PURCHASE WARRANT

 

For value received, Professional Diversity Network, Inc., a Delaware corporation (the “Company”), hereby certifies that White Winston Select Asset Funds, LLC, a Delaware limited liability company – or its registered transferees, successors or assigns (each person or entity holding all or part of this Warrant being referred to as a “Holder”) – is the registered holder of warrants (the “Warrants”) to subscribe for and purchase One Million (1,000,000) shares (as adjusted pursuant to Section 4 hereof, the “Warrant Shares”) of the Company’s Common Stock, par value $0.01 per share (“Common Stock”), at a purchase price per share equal to $2.50 (the “Warrant Price”), at any time during the Exercise Period (as defined below).

 

Section 1.          Loan Agreement; Definitions.  This Warrant is issued pursuant to a Master Credit Facility, dated as of March 30, 2016 (the “Loan Agreement”).  All capitalized terms used herein and not defined shall have the meaning given them in the Loan Agreement. For purposes of this Warrant, (i) “Exercise Period” means the period commencing on December 30, 2016, and ending on or before 5:00 P.M. Easter Time on December 30, 2021, unless sooner terminated as provided below, and (ii) “Expiration Date” means December 30, 2021.

 

Section 2.          Exercise.

 

(a)          Subject to the provisions hereof, the Holder may exercise this Warrant during the Exercise Period, in whole or in part and from time to time, by the surrender of this Warrant (with the Notice of Exercise attached hereto as Appendix A duly executed) at the principal office of the Company, or such other office or agency of the Company as it may reasonably designate by written notice to the Holder, during normal business hours on any Business Day (defined below), and the payment by the Holder by cash, certified check payable to the Company or wire transfer of immediately available funds to an account designated to the exercising Holder by the Company of an amount equal to the then applicable Warrant Price multiplied by the number of Warrant Shares then being purchased.  On the date on which the Holder shall have satisfied in full the Holder’s obligations set forth herein regarding an exercise of this Warrant (provided such date is prior to the Expiration Date), the Holder (or such other person or persons as directed by the Holder, subject to compliance with applicable law) shall be treated for all purposes as the holder of record of such Warrant Shares as of the close of business on such date.  As used in this Warrant, the term “Business Day” means any day other than a Saturday or Sunday on which commercial banks located in New York, New York are open for the general transaction of business.

 

 

	
Common Stock Purchase Warrant

	
Professional Diversity Network, Inc.

 

 

 

 

(b)          In the event of any exercise of the rights represented by this Warrant, certificates for the whole number of shares of Warrant Shares so purchased shall be delivered to the Holder (or such other person or persons as directed by the Holder in accordance with applicable law) as promptly as is reasonably practicable (but not later than twenty (20) Business Days) after such exercise at the Company’s expense, and, unless this Warrant has been fully exercised, a new Warrant representing the whole number of Warrant Shares, if any, with respect to which this Warrant shall not then have been exercised shall also be issued to the Holder as soon as reasonably practicable (but not later than twenty (20) Business Days) after such exercise.

 

Section 3.          Stock Fully Paid.  All Warrant Shares issued upon exercise of this Warrant shall be, at the time of delivery of the certificates for such Warrant Shares upon payment in full of the Exercise Price therefor in accordance with the terms of this Warrant, duly authorized and validly issued, fully paid and non-assessable.

 

Section 4.          Adjustments and Distributions.  The number and kind of securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows.

 

(a)          Adjustment for Stock Splits, Stock Dividends, Recapitalizations, etc.  The Warrant Price shall be proportionally adjusted to reflect any stock dividend, stock split, reverse stock split, reclassification, recapitalization or other similar event affecting the number of outstanding shares of Common Stock (or such other stock or securities) after the date of this Warrant.

 

(b)          Adjustment for Other Dividends and Distributions.  In case the Company shall make or issue, or shall fix a record date for the determination of eligible holders of the Common Stock entitled to receive, a dividend or other distribution payable with respect to the capital stock that is payable in (i) securities of the Company (other than issuances with respect to which adjustment is made under Section 4(a) or (b)), or (ii) assets (including cash dividends paid or payable solely out of retained earnings), then, and in each such case, the Holder, upon exercise of this Warrant at any time after the consummation, effective date or record date of such event, shall receive, in addition to the shares of Common Stock issuable upon such exercise prior to such date, the securities or such other assets of the Company to which the Holder would have been entitled upon such date if the Holder had exercised this Warrant immediately prior thereto (all subject to further adjustment as provided in this Warrant).

 

(c)          Adjustment for Reorganization, Consolidation, Merger.  In case of any reorganization of the Company (or of any other entity the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the date of this Warrant, or in case, after such date, the Company (or any such entity) shall consolidate with or merge into another entity or convey all or substantially all of its assets to another entity and then distribute the proceeds to its stockholders, then, and in each such case, the Holder, upon the exercise of this Warrant at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise of this Warrant prior to such consummation, the stock or other securities or property to which the Holder would have been entitled upon the consummation of such reorganization, consolidation, merger or conveyance if the Holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in this Warrant, and the successor or purchasing entity in such reorganization, consolidation, merger or conveyance (if other than the Company) shall duly execute and deliver to the Holder a supplement hereto acknowledging such entity’s obligations under this Warrant; and in each such case, the terms of the Warrant shall be applicable to the shares of stock or other securities or property receivable upon the exercise of this Warrant after the consummation of such reorganization, consolidation, merger or conveyance.

 

 

2

 

 

(d)          Notice of Adjustments.  The Company shall promptly give written notice to the Holder of this Warrant of each adjustment or readjustment of the Warrant Price or the number of shares of Common Stock or other securities issuable upon exercise of this Warrant.  The notice shall describe the adjustment or readjustment and show in reasonable detail the facts on which the adjustment or readjustment is based.

 

(e)          No Change Necessary.  The form of this Warrant need not be changed because of any adjustment in the Warrant Price or in the number of shares of Common Stock or other securities issuable upon its exercise.

 

(f)          Reservation of Stock.  If at any time the number of shares of Common Stock or other securities issuable upon exercise of this Warrant shall not be sufficient to effect the exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock or other securities issuable upon exercise of this Warrant as shall be sufficient for such purpose.

 

Section 5.          Taxes.  The Company will pay any documentary stamp taxes attributable to the initial issuance of Warrant Shares issuable upon the exercise of the Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates for Warrant Shares in a name other than that of the registered holder of this Warrant in respect of which such shares are issued, and in such case, the Company shall not be required to issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same has paid to the Company the amount of such tax or has established to the Company’s reasonable satisfaction that such tax has been paid.

 

Section 6.          Mutilated or Missing Warrants.  In case this Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall issue in exchange and substitution of and upon cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of Warrant Shares, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the Warrant, and with respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto, if requested by the Company.

 

Section 7.          Fractional Shares.  No fractional shares shall be issued in connection with any exercise hereunder, and in lieu of any such fractional shares the Company shall make a cash payment therefor to the Holder (or such other person or persons as directed by the Holder, subject to compliance with applicable laws) based on the fair Market Value of a Warrant Share on the date of exercise of this Warrant.

 

Section 8.          Compliance with Securities Act and Legends.

 

(a)          The Holder, by acceptance hereof, agrees that this Warrant and the Warrant Shares to be issued upon exercise hereof, are being acquired for investment and that such Holder will not offer, sell or otherwise dispose of this Warrant, or any Warrant Shares to be issued upon exercise hereof, except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder, as amended (the “Securities Act”), or any state’s securities laws.  Upon exercise of this Warrant, the Holder shall confirm in writing, by executing the form attached as Schedule 1 hereto, that the Warrant Shares so purchased are being acquired for investment and not with a view toward distribution or resale.  All certificates representing Warrant Shares issued upon exercise of this Warrant (unless registered under the Securities Act) shall, if certificated, be stamped or imprinted with, among other legends as may be required by the Company, a legend reading substantially as follows:

 

 

3

 

 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

(b)          Accredited Investor.  Holder is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act, as presently in effect.

 

(c)          Private Issue.  The Holder understands (i) that the securities issuable upon exercise of the Holder’s rights contained herein have not been registered under the Securities Act, or qualified under applicable state securities laws on the ground that the issuance contemplated by this Warrant will be exempt from the registration and qualifications requirements thereof, and (ii) that the Company’s reliance on such exemption is predicated on the Holder’s representations set forth in this Section 8.

 

(d)          Financial Risk.  The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment and has the ability to bear the economic risks of its investment.

 

Section 9.          Rights as Stockholders.  Except as expressly provided in this Warrant, no Holder, as such, shall be entitled to vote or receive dividends or be deemed the holder of Warrant Shares or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of the directors or upon any matter submitted to stockholders at any meeting thereof, or to receive notice of meetings, or to receive dividends or subscription rights or otherwise, unless and until this Warrant shall have been exercised and the Warrant Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein.

 

Section 10.        Registration Under the Securities Act of 1933.

 

(a)          Piggy-Back Registration.  In the event the Company files a registration statement with the Securities and Exchange Commission registering shares of Common Stock or files a Form U-7 or similar registration form which may be used to register securities of the Company for sale under state securities laws pursuant to an exemption from registration under the Securities Act, and which is appropriate for the inclusion therein of the shares purchased or purchasable upon exercise of this Warrant (the “Registrable Securities”), such registration statement or other filing (collectively a “Registration Statement”) shall include the Registrable Securities.  Upon the closing of the offering, the Company agrees to keep the Registration Statement current and effective until one year from the effective date of the Registration Statement or such longer period as the Company is otherwise keeping the Registration Statement current and effective.  The Company shall have the right to postpone or withdraw any registration affected pursuant to this section without obligation to the Holder and the obligation to give such notice and to use all reasonable efforts shall not apply to any proposal of the Company to register any of its securities under the Securities Act:

 

 

4

 

 

		(i)	on Form S-8 (or any successor form);

 

		(ii)	in connection with any stock option, stock purchase or other benefit plan; or

 

		(iii)	for the purpose of offering such securities to another business entity or the shareholders of such entity in connection with the acquisition of assets or shares of capital stock, respectively, of such entity.

 

(b)          Demand Registration.

 

(i)          Form S-3 Demand.  If at any time when it is eligible to use a Form S-3 Registration Statement, the Holder requests in writing that the Company file a Form S-3 Registration Statement with respect to some or all of the Registrable Securities, then the Company shall, as soon as practicable, and in any event within forty-five (45) days after the date such request is made by the Holder, file a Form S-3 Registration Statement under the Securities Act covering all Registrable Securities requested to be included in such registration, subject to the limitations of Section 10(b)(ii) and Section 10(b)(iii).

 

(ii)         Notwithstanding the foregoing obligations, if the Company furnishes to the Holder a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Company’s Board of Directors it would be materially detrimental to the Company and its stockholders for such Registration Statement to either become effective or remain effective for as long as such Registration Statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), then the Company shall have the right to defer taking action with respect to such filing for a period of not more than ninety (90) days after the request of the Holder is made; provided, however, that the Company may not invoke this right more than once in any twelve (12) month period; and provided further that the Company shall not register any securities for its own account or that of any other stockholder during such ninety (90) day period other than pursuant to a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar 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.

 

(iii)        The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 10(b)(i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such Registration Statement to become effective.  The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 10(b)(i) during the period that is thirty (30) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such Registration Statement to become effective.  A registration shall not be counted as “effected” for purposes of this Section 10(b)(iii) until such time as the applicable Registration Statement has been declared effective by the Securities and Exchange Commission.

 

 

5

 

 

(c)          All fees, disbursements and out-of-pocket expenses arising from any filing under this Section 10, the preparation and printing of the Registration Statement or compliance with applicable state securities and blue sky laws shall be borne by the Company.  The Company will use its best efforts to qualify the Registrable Securities for sale in such states as the Holder may reasonably request; provided that the Company shall not, as a result thereof, be required to qualify to do business in any such state.  The Company, at its expense, will supply the Holder with copies of the Registration Statement and prospectus included therein and other related documents in such quantities as the Holder may reasonably request.  Any broker’s commission or underwriting discount incurred by the Holder in selling any shares and the fees and expenses of any attorneys or accountants retained by the Holder shall be paid by the Holder.

 

(d)          The Company shall indemnify and hold harmless the Holder or any Holder of the Warrants or Registrable Securities that are being sold pursuant to the Registration Statement and each underwriter, within the meaning of the Securities Act, who may purchase from or sell for such Holder any shares from and against any and all losses, claims, damages and liabilities (including fees and expenses of counsel, which counsel shall, if such Holder requests, be separate from counsel for the Company, provided that the Company shall not be required to pay the fees and expenses of more than one law firm, which firm shall be reasonably approved by the Holder if the Holder is an indemnified party) arising out of or resulting from any untrue statement of, or alleged untrue statement of, a material fact contained in the Registration Statement or any post-effective amendment thereto or any other registration statement under the Securities Act or any prospectus included therein required to be filed or furnished by reason of this Section 10(d) or any application or other filing under any state securities law caused by any omission or alleged omissions of a material fact required to be stated therein or necessary to make the statements therein not misleading to which such Holder or any such underwriter or any of them may become subject under the Securities Act, the Exchange Act, or other Federal or state statutory law or regulations, at common law or otherwise, except insofar as any such untrue statement or alleged untrue statement or omission or alleged omission is based upon information furnished in writing to the Company by any such Holder or underwriter expressly for the use therein, which indemnification shall include each person, if any, who controls any such underwriter within the meaning of the Securities Act; provided, however, that such Holder or underwriter shall at the same time indemnify the Company, its directors, each officer signing the related registration statement, each person, if any, who controls the Company within the meaning of the Securities Act and each other Holder, from and against any and all losses, claims, damages, and liabilities caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement or any prospectus required to be filed or furnished by reason of this Section 10(d) or caused by any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, insofar as such untrue statement or alleged untrue statement or omission is based upon information furnished in writing to the Company by any such Holder or underwriter expressly for use therein.  In no event shall the indemnity from any Holder exceed the difference between the consideration received from the sale of securities pursuant to the Registration Statement and the exercise price of the Warrants.

 

(e)          Neither the giving of any notice by any Holder nor the making of any request for prospectuses shall impose any liability upon any Holder making such request or any obligation to sell any shares or exercise any Warrants.

 

 

6

 

 

(f)          The Company’s agreements with respect to the Warrants or the shares underlying the Warrants shall continue in effect regardless of the exercise or transfer of the Warrants.

 

Section 11.          Modification and Waiver.  This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the Company and the then current Holder, and such change, waiver, discharge or termination shall be binding on all future Holders.

 

Section 12.          Notices.  All notices and other communications hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt, to a party at the address set forth below (which may be changed in accordance with these notice procedures).  Demands or notices addressed to any other address at which the Holder customarily communicates with the Company also shall be effective when delivered. Notices refused by an addressee shall be deemed delivered.

 

	
If to the Holder:

	
c/o White Winston Select Asset Funds

	 	
265 Franklin St., Suite 1702

	 	
Boston, MA 02110

	 	
Fax: 801-938-7540

	 	 
	
with a copy (which shall not constitute notice) to:

	
McCarter & English, LLP

	 	
265 Franklin St.

	 	
Boston, MA 02110

	 	
Attention: Burt Winnick

	 	
Fax: 617-326-3078

	 	 
	
If to the Company:

	
Professional Diversity Network

	 	
801 West Adams Street, Suite 600

	 	
Chicago, IL 60607

	 	
Attention: James Kirsch

	 	 
	
with a copy (which shall not constitute notice) to:

	
Greenberg Traurig, LLP

	 	
77 West Wacker Drive, Suite 3100

	 	
Chicago, IL 60601

	 	
Attn:  Stacey T. Kern

	 	
Email: kerns@gtlaw.com

	 	
Fax: 312-456-8435

 

Section 13.          Descriptive Headings.  The descriptive headings contained in this Warrant are inserted for convenience only and do not constitute a part of this Warrant.

 

Section 14.          Governing Law.  This Warrant (including any claim or controversy arising out of or relating to this Warrant) shall be governed by the General Corporation Law of the State of Delaware as to matters  within the scope thereof, and as to all other matters shall be governed in accordance with the internal laws of the Commonwealth of Massachusetts  without regard to conflict of law principles that would result in the application of any law another jurisdiction.  Each of the parties hereto consents to the exclusive jurisdiction and venue of the courts, as the case may be, of Suffolk County, Massachusetts or the United States Federal Court District of Massachusetts; Eastern Division.

 

 

7

 

 

Section 15.          Acceptance.  Receipt of this Warrant by the Holder hereof shall constitute acceptance of and agreement to the terms and conditions set forth herein.

 

Section 16.          No Impairment of Rights.  The Company will not, by amendment of its Certificate of Incorporation or through any other means, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder of this Warrant against material impairment.

 

Section 17.          Assignment.  Subject to compliance with applicable law, the Holder may freely transfer its rights hereunder, in whole or in part.

 

Section 18.          Severability.  In the event any one or more of the provisions contained in this Warrant shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Warrant shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

 

Section 19.          Waiver of Jury Trial.  THE COMPANY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS WARRANT IS A PART IS A COMMERCIAL TRANSACTION, AND HEREBY VOLUNTARILY AND KNOWINGLY WAIVES, TO THE EXTENT PERMITTED BY LAW, THE BENEFITS OF TRIAL BY JURY, NOW IN FORCE OR WHICH MAY HEREAFTER BECOME LAW.

 

[Signature Page Follows]

 

 

8

 

 

IN WITNESS WHEREOF, the Company and the Holder have caused this Common Stock Purchase Warrant to be executed as of the date first written above.

 

THE COMPANY

 

PROFESSIONAL DIVERSITY NETWORK, INC.

 

 

	
By:

	
/s/ Katherine Butkevich

	 
	 	 	 
	
Name:

	
Katherine Butkevich

	 
	 	 	 
	
Title:

	
CEO

	 

 

HOLDER

 

WHITE WINSTON SELECT ASSET FUNDS, LLC

 

 

	
By:

	
/s/ Todd M. Enright, Manager

	 
	 	
Todd M. Enright, Manager

	 

  

 

	
Signature Page 

	
Common Stock Purchase Warrant

	
Professional Diversity Network, Inc.

 

 

 

 

APPENDIX A

Notice of Exercise

To:       [_____________]

1.          The undersigned hereby irrevocably elects to purchase [_____] shares of Common Stock of Professional Diversity Network, Inc., pursuant to the terms of the attached Common Stock Purchase Warrant, and hereby:

 

[__]      tenders herewith payment of the purchase price of such shares in full, by cash, certified check/wire transfer.

 

[__]      elects to exercise this warrant on a cashless basis pursuant to Section 2(b).

2.          Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name or names as are specified below:

	 	 	 
	
(Name)

	 	
(Name)

	 	 	 
	 	 	 
	
(Signature)

	 	
(Signature)

 

	 
	
(Address)

 

	 	 
	
(Date)

	 

3.          Please issue a new Common Stock Purchase Warrant of equivalent form and tenor for the unexercised portion of the attached Common Stock Purchase Warrant in the name of the undersigned or in such other name as is specified below:

	 	 	 
	 	 	 
	
Date:

	 	 

 

	
Warrantholder:

	 	 
	 	 	 
	
Name (Print):

	 	 

 

	
By:

	 	 

  

	
Common Stock Purchase Warrant

	
Professional Diversity Network, Inc.

 

 

 

 

SCHEDULE 1

INVESTMENT REPRESENTATION STATEMENT

	
Purchaser:

	 	 	 
	
Company:

	Professional Diversity Network, Inc. 	 
	
Security: 

	Common Stock 	 
	
Amount:

	 	 	 
	
Date:

	 	 	 

In connection with the purchase of the above-listed securities (the “Securities”), the undersigned (the “Purchaser”) represents to the Company as follows:

 

(a)          The Purchaser is aware of the Company’s business affairs and financial condition, and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities.  The Purchaser is purchasing the Securities for its own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution” thereof for purposes of the Securities Act of 1933, as amended (the “Act”).

 

(b)          The Purchaser understands that the Securities have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Purchaser’s investment intent as expressed herein.  In this connection, the Purchaser understands that, in the view of the Securities and Exchange Commission (“SEC”), the statutory basis for such exemption may be unavailable if the Purchaser’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under applicable tax laws, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future.

 

(c)          The Purchaser further understands that the Securities must be held indefinitely unless subsequently registered under the Act or unless an exemption from registration is otherwise available.  In addition, the Purchaser understands that the certificate evidencing the Securities will be imprinted with the legend referred to in the Warrant under which the Securities are being purchased.

 

(d)          The Purchaser is aware of the provisions of Rule 144 and 144A, promulgated under the Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof (or from an affiliate of such issuer), in a non-public offering subject to the satisfaction of certain conditions, if applicable, including, among other things:  the availability of certain public information about the Company, the resale occurring not less than one (1) year after the party has purchased and paid for the securities to be sold; the sale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934, as amended) and the amount of securities being sold during any three-month period not exceeding the specified limitations stated therein.

 

(e)          The Purchaser further understands that at the time it wishes to sell the Securities there may be no public market upon which to make such a sale, and that, even if such a public market then exists, the Company may not be satisfying the current public information requirements of Rule 144 and 144A, and that, in such event, the Purchaser may be precluded from selling the Securities under Rule 144 and 144A even if the one-year minimum holding period had been satisfied.

 

 

 

	
Common Stock Purchase Warrant

	
Professional Diversity Network, Inc.

 

 

 

 

(f)          The Purchaser further understands that in the event all of the requirements of Rule 144 and 144A are not satisfied, registration under the Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive, the Staff of the SEC has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden or proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.

 

(g)          The Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act, as presently in effect.

 

	
Purchaser Signature:

	 	 

 

  

	
Common Stock Purchase Warrant

	
Professional Diversity Network, Inc.

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