Document:

exv10w1

Exhibit 10.1

			
	 	 	 
	EXECUTION COPY
	 	Contract #1-26652287-4

AMENDMENT NUMBER 4

TO

YAHOO! PUBLISHER NETWORK AGREEMENT #1-26652287

     This Amendment Number 4 to the Yahoo! Publisher Network Agreement #1-26652287 (“Amendment
#4”) is entered into as of July 29, 2011 (“Amendment #4 Effective Date”) and is made by
and among Local.com Corporation (“Publisher”) and Yahoo! Inc. (“Yahoo!”), and
modifies the Yahoo! Publisher Network Agreement #1-26652287 by and among the same parties effective
as of August 25, 2010, as amended (the “Agreement”).

     In consideration of mutual covenants and for such other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties hereto, Publisher and
Yahoo! hereby agree as follows:

	1.	 	The parties agree that Publisher’s written notice of non-renewal dated July 13, 2011 is
hereby revoked and will have no effect on the Agreement.
	 
	2.	 	The “End Date” on the Service Order is hereby deleted and replaced with the following: “End
Date: July 31, 2012”.
	 
	3.	 	Parts A and D of the “Deployment of Services on Publisher’s Offerings” section on the Service
Order are hereby deleted and replaced with the following, respectively:

A. Results Hosting Sites

1. Link = Search Box; Results = Paid Search Results;
Publisher’s Offering = the following Sites:
www.local.com,
www.mrlocal.com, www.premierguide.com,
www.ziphip.com and
www.loqal.com (sometimes referred to herein individually or
collectively as “Results Hosting Sites”).

2. Link = Hyperlinks; Results = Hyperlink Results;
Publisher’s Offering = Results Hosting Sites.

3. Link = Ad Code; Results = Matched Ads;
Publisher’s Offering = Results Hosting Sites.

For Results Hosting Sites approved for arbitrage, the terms of
Attachment E will apply.

D. Mapped Domains

1. Link = Domain Match Link; Results = Domain Match
Results; Publisher’s Offering = Mapped Domains (as defined in
Attachment D).

	4.	 	The “Implementation” section on the Service Order is hereby deleted and replaced with the
following:

Implementation:

	 	.	 	As shown in Attachment A and as described in this SO and
Attachments
	 
	 	.	 	***
	 
	 	.	 	Placement Requirement: As set forth in Section E of
Attachment A.
	 
	 	.	 	***

*** — Portions of this page have been omitted pursuant to a request for confidential treatment and filed
separately with the Securities and Exchange Commission

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	 	.	 	Publisher will abide by the provisions of *** the Domain
Match Attachment.

	5.	 	Part C of the “Compensation” section on the Service Order is hereby deleted in its entirety.
	 
	6.	 	The “Notice” section on the Service Order is hereby amended to revise Publisher’s information
to the following:

PUBLISHER

7555 Irvine Center Dr, Irvine, CA 92618

Fax: 949-784-0880

Attn: General Counsel

	7.	 	Section A(5) of Attachment A (Implementation Requirements) is hereby deleted in its entirety
and replaced with the following (additions shown in italics):

	 	5.	 	Publisher will display the first three (3) Paid
Results (or any lesser number delivered by Yahoo!)
contiguously, in the order provided by Yahoo!, without any
other content between the individual Paid Results. Furthermore,
with respect to Paid Results after such first three Paid
Results (or any lesser number delivered by Yahoo!) and any
other Results on a webpage, Publisher will display such Results
in the order provided by Yahoo without any other search results
or content from providers other than Yahoo! in between the
individual Results, as shown in the mockups attached hereto or
as otherwise approved in writing by Yahoo!.

	8.	 	Section A(12) of Attachment A (Implementation Requirements) is hereby deleted in its entirety
and replaced with the following (additions shown in italics):

	 	12.	 	Publisher will implement any commercially
reasonable technical requirements requested by Yahoo!***.

	9.	 	Section E (iFrame Implementation) of Attachment A (Implementation Requirements) is hereby
deleted in its entirety and replaced with the following:

	 	E.	 	Placement Requirement

	 	 	 	***

	10.	 	The third sentence of Section 3 (Future Offerings) of Attachment B (Terms and Conditions) is
hereby deleted and replaced with the following (additions shown in italics):

In addition, if, after the Start Date, Publisher owns or operates
any additional websites or domains, owns or licenses any software
applications for distribution to end-users, or engages in any email
campaigns that include (or that Publisher anticipates will include)
search functionality or Paid Listings ***, Publisher will notify
Yahoo! ***.

	11.	 	Section 8 (Exclusivity) of Attachment B (Terms and Conditions) is hereby amended as follows:

	 	a.	 	The following is hereby included before subsection (a) of Section 8:

	 	8.	 	Exclusivity. ***

*** — Portions of this page have been omitted pursuant to a request for confidential treatment and
filed separately with the Securities and Exchange Commission

Yahoo! Confidential

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	 	b.	 	The first sentence of Section 8(b) is hereby deleted and replaced with the following
(additions shown in italics):

***

	 	c.	 	Section 8(e) is hereby deleted in its entirety and replaced
with “Intentionally omitted.”

	12.	 	All references to “mockups” in the Agreement are hereby amended to refer to “mockups attached
to this Agreement or as otherwise approved in writing by Yahoo!.”
	 
	13.	 	The Agreement is amended to include the mockups attached to this Amendment #4.
	 
	14.	 	Exhibit 2 to the Agreement is hereby deleted in its entirety and replaced with the following:

Exhibit 2 to the Agreement

*** Approved by Yahoo! as of the Start Date

As approved in writing by Yahoo!.

	15.	 	Miscellaneous.

	 	(a)	 	Except as expressly set forth herein, the terms and conditions of the Agreement are
unmodified and remain in full force and effect.
	 
	 	(b)	 	The Agreement is amended to provide that references in the Agreement to “this
Agreement” or “the Agreement” (including indirect references such as “hereunder”, “hereby”,
“herein” and “hereof”) shall be deemed references to the Agreement as amended hereby. All
capitalized defined terms used but not defined herein shall have the same meaning as set
forth in the Agreement.
	 
	 	(c)	 	This Amendment #4 may be executed in one or more counterparts, each of which when
executed shall be deemed to be an original but all of which taken together shall constitute
one and the same instrument. An electronically transmitted signature via pdf or facsimile
shall be deemed the equivalent to an original ink signature.
	 
	 	(d)	 	In the event of a conflict between any of the terms and conditions of the Agreement
and any of the terms and conditions of this Amendment #4, the terms and conditions of this
Amendment #4 shall control.

[SIGNATURE PAGE FOLLOWS]

*** — Portions of this page have been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange Commission

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[SIGNATURE PAGE TO AMENDMENT #4]

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment #4 as of the
Amendment #4 Effective Date.

	 	 	 	 	 	 	 	 	 	 	 

	LOCAL.COM CORPORATION	 	 	 	YAHOO! INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Kenneth S. Cragun
 

Kenneth S. Cragun
 

	 	  
	 	By:

Name:
	 	/s/ Al Echamendi
 

Al Echamendi
 

	 	  
	Title:

	 	CFO
 

	 	 
	 	Title:
	 	VP, Business Development: Search and
Strategic Partnerships
 

	 	 
	Date:

	 	7-29-11
 

	 	 
	 	Date:
	 	7-29-11
 

	 	 

*** — Portions of this page have been omitted pursuant to a request for confidential treatment
and filed separately with the Securities and Exchange Commission

Yahoo! Confidential

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	 	Contract #1-26652287-4

MOCKUPS

As attached hereto.

***

*** — Portions of this page have been omitted pursuant to a request for confidential treatment
and filed separately with the Securities and Exchange Commission

Yahoo! Confidential

5Exhibit 10.1

Exhibit 10.1

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is dated as of June 16, 2011 between
smart USA Distributor LLC, a Delaware limited liability company (“smart USA”), and Daimler
Vehicle Innovations USA LLC, a Delaware limited liability company (“DVIUSA”).

RECITALS

	A.	 	smart USA currently holds the exclusive distribution rights for new smart fortwo vehicles,
parts and accessories within the United States and Puerto Rico (the “Distribution
Rights”) pursuant to a Distributor Agreement dated October 31, 2006 and related documents
between smart USA and Daimler AG (“Daimler”) as successor to smart GmbH (the
“Distributor Agreement”);

	B.	 	The parties wish to enter into this Agreement which will govern the terms and conditions of
the sale of certain smart USA assets and the assumption of certain liabilities by DVIUSA which
relate to smart USA.

NOW, THEREFORE, the parties agree as follows:

1. Sale and Transfer of Assets. At the Closing (as defined in Section 5 below),
smart USA shall sell, convey and transfer to DVIUSA, and DVIUSA shall purchase from smart USA, the
following assets owned by smart USA (collectively, the “Acquired Assets”). The Acquired
Assets shall be listed on an asset list, described in sufficient detail to be reasonably
identified, which list shall govern the transfer of and payment of the Acquired Assets (the
“Asset List”).

1.1 New Vehicles. All new, undamaged, and untitled smart fortwo combustion and
electric vehicles (“New Vehicles”) owned by smart USA including New Vehicles at
port, in transit, within the control of smart USA or previously the property of any
Non-continuing smart Dealers (as defined in Section 10.7(b) below).

1.2 Press Vehicles. All press and marketing smart fortwo vehicles within the
control of smart USA (“Press Vehicles”).

1.3 Pre-Owned Vehicles. All pre-owned or demonstrator smart fortwo vehicles
required to be repurchased by smart USA from a Non-continuing smart Dealer or any other
vehicles mutually agreed to be purchased (“Pre-owned Vehicles,” and, together with
the New Vehicles and Press Vehicles, “Vehicles”).

1.4 Parts. All smart parts, accessories and merchandise purchased from Daimler
or other authorized manufacturers which are new, undamaged, unsold and in the original
packaging (the “Parts”), including Parts at smart’s distribution warehouse, within
the control of smart USA, including in transit, or previously the property of any
Non-continuing smart Dealers.

1.5 Signage and Special Tools. The smart brand signs, special tools and
electric vehicle special tools (the “Special Tools”) owned by smart USA or
previously the property of any Non-continuing smart Dealers.

 

 

 

1.6 Fixed Assets. Tridion cells, auto show displays, and other fixed assets of
smart USA that are identified on Section 1.6 of the Asset List (“Fixed
Assets”), including Fixed Assets previously the property of any Non-continuing smart
Dealers.

1.7 Parts, Sales and Service Information. All of the following information of
smart USA: (i) parts and sales history and parts inventory stocking level information
(“Parts Information”); (ii) vehicle sales related documents (“Sales
Information”); (iii) service history information (including, but not limited to, repair
orders, warranty records and other relevant smart USA files) relating to mechanical repairs
performed (“Service Information”); and customer lists and customer call center
records.

1.8 Records and Materials. All promotional and advertising materials, training
materials, brochures, catalogs, operating records, warranty manuals, shop manuals, sales
manuals, sales materials, invoices, forms, parts records, user, repair and warranty records,
inventory records, sales records, all governmental reporting records, and any other
information that has been reduced to writing or electronically stored for use in connection
with smart USA’s operations (“Records and Materials”).

1.9 Assumed Contracts. All of smart USA’s right, title, interest and benefits
in, to and under licenses (to the extent transferable), contracts, purchase orders,
agreements and leases described on Section 1.9(a) of the Asset List, which shall
include the agreements with smart USA and Mercedes Benz Financial and/or Daimler AG relating
to vehicle leasing (collectively, the “Assumed Contracts”). In the event third party
consents are required to transfer any Assumed Contracts, the parties shall mutually work to
obtain such consents. Any and all contracts, purchase orders, agreements and leases (along
with all attendant obligations, liabilities, and benefits, if any) not specifically listed
on Section 1.9(a) of the Asset List shall be deemed to have been retained by smart USA.

1.10 Prepaid Assets. All right, title and interest in and to any of smart
USA’s prepaid assets (the “Prepaid Assets”) and intellectual property rights as
listed on Section 1.10 of the Asset List, including but not limited to the costs of
the vehicle development project previously pursued by smart USA, in each case upon
reasonable documentation of such costs.

1.11 Miscellaneous Assets. Any other assets that do not fall under the
definitions set forth in Section 1.1 — 1.10 and which smart USA agrees to sell and
DVIUSA agrees to purchase, and which are listed on Section 1.12 of the Asset List.
(“Miscellaneous Assets”).

1.12 The Asset List shall be prepared 15 days prior to Closing by smart USA and updated
at Closing and the Subsequent Closing to reflect any items mutually agreed between the
parties. The Acquired Assets shall include any Vehicles, Parts, Fixed Assets, Signs, and
Special Tools owned by smart USA that have been purchased from any Non-continuing smart
Dealers.

 

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2. Excluded Assets. The Acquired Assets shall not include, and smart USA shall not
be obligated to sell, convey, transfer, assign or deliver to DVIUSA, and DVIUSA shall not acquire
or be obligated to purchase any asset not specifically defined as an Acquired Asset including,
without limitation, the following (collectively, the “Excluded Assets”):

2.1 Cash and Securities. Cash, marketable securities, commercial paper,
certificates of deposit and other bank deposits, treasury bills and other cash equivalents
owned by smart USA.

2.2 Accounts Receivable. Accounts receivable, including, without limitation,
warranty reimbursement and other amounts owed to smart USA by Daimler under the Distributor
Agreement and payments, bonuses or allowances received or to be received by smart USA from
any third party, except to the extent that the payment are pursuant to an Assumed Contract
and accrued after the date of Closing.

2.3 Retained Books and Records. General ledger, financial journals, general
books of account and corporate books, including minutes of smart USA.

2.4 Refunds/Rebates. Tax refunds, insurance premium, any other rebate due to
smart USA, 401(k) plans, and other health and welfare plans of smart USA.

3. Assumption of Liabilities. DVIUSA shall assume and be responsible and liable for
the following debts, liabilities and obligations (collectively, the “Assumed Liabilities”)
which relate to:

3.1 Assumed Contracts. Except as otherwise specifically provided herein, all
of the liabilities and obligations arising from or relating to the Assumed Contracts, to be
performed on or after the date of Closing. Expressly excluded from Assumed Liabilities are
any claims or allegations arising from smart USA’s conduct or failure to act under the terms
of any contract, whether an Assumed Contract or not, including any Dealer Agreement, or
under any statute, regulation or common law prior to the Closing Date. Except with regard
to termination costs as provided in paragraph 4.2 herein, expressly excluded are any
liabilities for Dealer compensation including bonuses, holdbacks or escrows.

3.2 Warranty Costs. All costs, expenses and liabilities arising from warranty
repairs performed on or after the Closing regardless of whether such claims relate to
warranty repairs on smart vehicles sold after or prior to the Closing including, without
limitation, costs not charged to a retail customer and incurred for goodwill purposes on or
after the date of Closing for services or repairs and costs incurred in conducting any
service campaigns on or after the date of Closing to cover repair and replacement costs
relating to the campaign (collectively, the “Warranty Costs”). smart USA shall
remain responsible for all Warranty Costs for repairs performed prior to Closing.

Shipping and Transport. All costs of shipping, transport, and delivery of the
listed Acquired Assets (including Vehicles, Parts, Signage and Special Tools) shall be born
by DVIUSA whether prior to, on or after the date of Closing to move the Acquired Assets into
the possession of DVIUSA or its designee. To remove all doubt, DVIUSA shall bear the cost of
shipping, transport, and delivery for the purpose of aggregating the Acquired Assets into
one location, (e.g. parts to Tulsa distribution) and DVIUSA shall pay all costs of shipping,
transport, and delivery of the aggregated Acquired Assets to their final destination.

 

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3.3 Risk of Loss. The risk of loss for all Acquired Assets listed on the Asset
List shall transfer to DVIUSA at the time of Closing or, if earlier, the time such assets
are delivered to DVIUSA. Prior to such time, smart USA shall bear the risk of loss for all
Acquired Assets. For any additional Acquired Assets added to the Asset List after the
Closing but on or before the Second Closing, the risk of loss shall transfer at the time of
the Second Closing or, if earlier, the time such assets are delivered to DVIUSA.

3.4 Third Party Claims. All costs, expenses and liabilities which arise prior
to, on or after the Closing associated with lemon law, products liability, or other claims,
demands or causes of action arising from the smart product or smart parts made or filed by a
third party against smart USA or any smart Dealer and required to be indemnified by smart
USA under the smart USA Dealer Agreement or applicable law, which arise from or relate to
smart fortwo vehicles, parts, accessories or merchandise sold by smart USA, including those
claims relating to the Open Litigation and Subsequent Litigation (each as defined in
Section 10.8 below). Expressly excepted from this paragraph 3.5 are any future
third party claims for the gross negligence or intentional misconduct of smart USA, its
employees, affiliates, and parent in each case which are unrelated to the smart products, or
smart parts or and all claims which are not alleged to relate to the smart product, or smart
parts.

4. Purchase Price.

4.1 Purchase Price. In accordance with Section 4.2 below, DVIUSA shall
pay to smart USA in United States Dollars the sum of the following for the Acquired Assets
(the “Purchase Price”):

(a) For the Parts Information, Sales Information, Service Information, and
the Records and Materials, the amount of One Dollar ($1.00).

(b) For New Vehicles, an amount equal to smart USA’s actual cost for each
New Vehicle.

(c) For Press Vehicles, an amount equal to the net book value, less an
amount for damage to the Vehicles in excess of wear and tear, per vehicle
set forth on the Asset List.

(d) An amount equal to smart USA’s net book value of the Pre-Owned Vehicles,
Signs, Special Tools, Parts, Supplies, Prepaid Assets, Fixed Assets and
Miscellaneous Assets set forth on the Asset List.

4.2 Additional Payment. To the extent not previously reimbursed in the
Purchase Price in Section 4.1 above, at the Closing, DVIUSA shall reimburse smart USA for
(i) the Employee costs specified in Section 10.6, (ii) the dealer related costs specified
in Section 10.7 and an amount equal to the costs of the vehicle development project
previously pursued by smart USA, in each case upon reasonable documentation of such costs.
(collectively, the “Other Payments”).

 

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4.3 Payment. DVIUSA shall pay the Purchase Price and Other Payments to smart
USA in cash by wiring such funds to an account designated by smart USA as follows:

	 	(a)	 	At the Closing, DVIUSA shall pay to smart USA an amount equal to the
sum of the following: (i) the purchase price of the New Vehicles calculated in
accordance with Section 4.1(b) and the costs noted in Section 4.1(e); (ii) the
Other Payments; and (iii) Ninety Percent (90%) of the purchase price for the assets
noted in Sections 4.1(a), (c), and (d).

	 
	 	(b)	 	Within 90 days of the Closing, the parties shall have a final
reconciliation of any amounts owed pursuant to this Agreement. DVIUSA shall pay to
smart USA an amount equal to the remaining Ten Percent (10%) of the purchase price
for the assets noted in Sections 4.1(a), (c), and (d) (the “Subsequent
Closing”). To the extent the parties identify additional or missing Acquired
Assets or unreimbursed amounts owing in relation to the Other Payments or otherwise
hereunder, such amounts shall be credited or paid at the Subsequent Closing. The
parties shall make reasonable efforts to have a final reconciliation of such
amounts at such time.

	 
	 	(c)	 	Unless otherwise agreed to by the Parties in writing, all obligations
of DVIUSA to purchase any assets pursuant to this Asset Purchase Agreement shall
cease after the conclusion of the Subsequent Closing.

5. Closing.

5.1 Subject to the conditions set forth in this Agreement, the purchase and sale of the
Acquired Assets pursuant to this Agreement (the “Closing”) shall take place on June
30, 2011 at a location mutually agreed upon by the parties provided that the parties may
mutually agree to extend the Closing Date in the event the closing conditions in Section 8
or 9 have not been satisfied. In no event shall the Closing occur later that July 30, 2011.
The date on which the Closing occurs is referred to as the “Closing Date”. Upon
the completion of the Closing, the transactions described herein shall be deemed to have
occurred as of the opening of business on the Closing Date.

5.2 DVIUSA Deliveries. At the Closing, DVIUSA shall deliver to smart USA:

(a) The Purchase Price and Other Payments by wire transfer of immediately
available funds to an account or accounts designated by smart USA in
writing, in the amounts described in Section 4.

(b) The certificate required under Section 7.1 of this Agreement.

(c) A good standing certificate for DVIUSA from the Secretary of State for
the state in which DVIUSA is incorporated.

(d) All consents and approvals (including, without limitation, a certified
copy of resolutions of DVIUSA board of directors) required for DVIUSA to
execute and deliver this Agreement and all other agreements related to this
transaction.

(e) A tax resale certificate.

(f) Such other documents as smart USA may reasonably request.

 

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5.3 smart USA Deliveries. At Closing, smart USA shall deliver to
DVIUSA:

(a) A duly executed bill of sale for the Acquired Assets

(b) Manufacturer’s statements of origin for the New Vehicles duly endorsed
by smart USA and all title documents for the Pre-Owned Vehicles.

(c) Lien releases, duly executed by secured parties, if any, to release and
terminate any liens, security interests and encumbrances on the Acquired
Assets.

(d) All consents and approvals (including, without limitation, a certified
copy of resolutions of smart USA’s board of directors) required for smart
USA to execute this Agreement and all other agreements related to this
transaction.

(e) The Acquired Assets.

(f) The certificate required under Section 6.1 of this Agreement.

(g) A good standing certificate for smart USA from the Secretary of State
for the state in which smart USA is incorporated.

(h) Such other documents as DVIUSA may reasonably request.

5.4 Mutual Deliveries. The parties shall mutually agree to the contents of the
Asset List.

6. Representations and Warranties by smart USA. smart USA hereby represents and
warrants (as of the date of this Agreement and as of the Closing Date) to DVIUSA as follows:

6.1 Authority. smart USA is a limited liability company validly existing under
the laws of the State of Delaware and has the corporate power and corporate authority to own
the Acquired Assets. smart USA is qualified to do business and is in good standing in all
states necessary to conduct its operations. smart USA has full power, authority and legal
right to enter into this Agreement and each other document to be executed and delivered by
smart USA pursuant to this Agreement and to perform all of its obligations hereunder or
thereunder. This Agreement has been duly executed and delivered by smart USA and
constitutes a valid and binding obligation of smart USA.

6.2 Consents and Approvals; No Violations. Except as otherwise set forth
herein, neither the execution, delivery or performance of this Agreement by smart USA nor
the consummation by smart USA of the transactions contemplated hereby nor compliance by
smart USA with any of the provisions hereof will (a) conflict with or result in any breach
of any provision of the articles of incorporation or related documents of smart USA, (b)
require any filing with, or permit, authorization, consent or approval of, any governmental
entity, (c) result in a violation or breach of, or constitute (with or without due notice or
lapse of time or both) a default (or give rise to any right of
termination, amendment, cancellation or acceleration) under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, lease, license, contract,
agreement or other instrument or obligation to which smart USA is a party or by which it or
any of its properties or assets may be bound other than as set forth on Schedule 6.2
hereof, or (d) violate any order, writ, injunction, decree, statute, rule or regulation
applicable to smart USA, or any of its respective properties or assets.

 

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6.3 Acquired Assets. smart USA has and will convey to DVIUSA at Closing good
and marketable title to the Acquired Assets, free and clear of all claims, liens, security
interests, encumbrances and restrictions of any nature whatsoever.

6.4 Compliance with Laws. The Acquired Assets and smart USA’s use, ownership
and operation of the Acquired Assets are in material compliance with all applicable laws,
statutes, ordinances, codes, regulations, rules, judgments, orders, decrees, treaties or
other requirements having the force of law (“Law”) of any court or other law-making,
regulation-making or rule-making entity, agency or commission, or any other governmental
entity, authority or instrumentality, whether federal, state, municipal, local or foreign
(“Governmental Authority”). smart USA has not received any written notice from any
Governmental Authority claiming any material non-compliance with any Law and/or failure to
have any permit required by Law.

7. Representations and Warranties by the DVIUSA. DVIUSA hereby represents and
warrants (as of the date of this Agreement and as of the Closing Date) to smart USA as follows:

7.1 Authority. DVIUSA is a limited liability company validly existing under the
laws of the State of Delaware. DVIUSA has full power, authority and legal right to enter
into this Agreement and each other document to be executed and delivered by DVIUSA pursuant
to this Agreement and to perform all of its obligations hereunder or thereunder. This
Agreement has been duly executed and delivered by DVIUSA and constitutes a valid and binding
obligation of DVIUSA enforceable against DVIUSA in accordance with its terms.

7.2 Consents and Approvals; No Violations. Except as set forth herein, neither
the execution, delivery or performance of this Agreement by DVIUSA nor the consummation by
DVIUSA of the transactions contemplated hereby nor compliance by DVIUSA with any of the
provisions hereof will (a) require any consent or approval of any governmental entity other
than state regulatory authorities, (b) result in a violation or breach of, or constitute
(with or without due notice or lapse of time or both) a default (or give rise to any right
of termination, amendment, cancellation or acceleration) under, any of the terms, conditions
or provisions of any note, bond, mortgage, indenture, lease, license, contract, agreement or
other instrument or obligation to which DVIUSA is a party or by which it or any of its
properties or assets may be bound, or (c) violate any order, writ, injunction, decree,
statute, rule or regulation applicable to DVIUSA or any of its properties or assets.

 

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8. Conditions Precedent to DVIUSA’s Obligations. The obligations of DVIUSA at the
Closing shall be subject to the satisfaction of the following conditions precedent any of which may
be waived by DVIUSA:

8.1 Representations. All representations and warranties of smart USA contained
herein shall be true and correct in all material respects on the Closing Date as if made on
such date and all covenants and agreements of smart USA contained in this Agreement shall
have been complied with in all respects. At the Closing, DVIUSA shall have received a
certificate, dated as of the Closing Date and duly executed by smart USA to the effect that
the conditions set forth in the preceding sentence have been satisfied and smart USA shall
have made all required Closing deliveries to DVIUSA as set forth in this Agreement.

8.2 Conveyance Documents. DVIUSA shall have received from smart USA such bills
of sale, assignments, and other good and sufficient instruments of conveyance and transfer
as are effective to transfer to DVIUSA title to the Acquired Assets.

8.3 Distribution Agreement and Licenses. DVIUSA shall have received a General
Distributor Agreement with Daimler, all corporate formation and capitalization approvals
from Daimler, and shall have acquired state Vehicle Distributor Licenses sufficient to
proceed with the Closing. Closing shall be delayed in ten (10) day increments until this
condition is satisfied.

9. Conditions Precedent to smart USA’s Obligations. The obligations of smart USA at
the Closing shall be subject to the satisfaction of the following conditions precedent any of which
may be waived by smart USA:

9.1 Representations/Deliveries. All of DVIUSA’s representations and warranties
contained herein shall be true and correct on the Closing Date as if made on such date and
all covenants and agreements of DVIUSA contained herein shall have been complied with in all
respects. At the Closing, smart USA shall have received a certificate, dated as of the
Closing Date and duly executed by DVIUSA to the effect that the conditions set forth in the
preceding sentence have been satisfied and DVIUSA shall have made all required Closing
deliveries to smart USA as set forth in the Agreement.

9.2 Assignment of Distributor Agreement. Daimler and smart USA shall have
terminated its respective obligations pursuant to the Distributor Agreement between them
upon terms and conditions reasonably acceptable to them, effective as of the Closing Date It
is contemplated that smart USA and Daimler will execute a settlement agreement on or before
the Closing Date.

10. Further Agreements and Covenants.

10.1 Further Assurances. smart USA and DVIUSA each agree that it will, upon the
request of the other at any time after the Closing Date and without further consideration,
execute and deliver such other documents and instruments and take such other actions as may
be reasonably necessary to carry out the purpose and intent of this Agreement.

10.2 Post Closing Date Assistance. In order to facilitate a smooth transition
of the Distribution Rights to DVIUSA, smart USA agrees to reasonably assist DVIUSA in its
distribution business for a period of up to 120 days after the Closing Date.

 

8

 

10.3 DVIUSA Retention of Parts, Sales and Service Information. Upon reasonable
request (including, but not limited to an audit of or litigation or threatened
litigation against smart USA), DVIUSA shall permit smart USA access to the Parts, Sales
and Service Information and related books and records (collectively, the
“Information”) and permit smart USA to make copies of such Information at smart
USA’s expense.

10.4 Parts and Tools All existing smart Parts and Special Tools to be acquired
by DVIUSA and all Parts and Special Tools of Non-continuing smart Dealers (the “Part
Assets”) shall be shipped to smart USA’s Parts Distribution Center in Tulsa, Oklahoma
either before or by a mutually agreeable date, not to exceed 30 day after Closing, at
DVIUSA’s expense. DVIUSA and smart USA shall cooperate to inventory the Parts Assets and,
DVIUSA shall arrange for shipment of the Parts Assets, at DVIUSA’s expense at a mutually
agreeable date(s), not to extend beyond the date of the Subsequent Closing. DVIUSA will not
be charged any storage charges for Parts and Special Tools during the interim period between
Closing Date and the Subsequent Closing.

Furnishing Information. smart USA, on the one hand, and DVIUSA, on the other
hand, will, as soon as practicable after reasonable request therefore, furnish to the other
all the information concerning smart USA or DVIUSA, respectively, required for inclusion in
any statement or application made by smart USA or DVIUSA to, any governmental or regulatory
body or in connection with obtaining any third party consent in connection with the
transactions contemplated by this Agreement. DVIUSA agrees to diligently pursue the issuance
of all required licenses from the applicable state Governmental Authority necessary to
operate as the distributor of smart fortwo vehicles, parts and accessories in the United
States as of the Closing Date (the “Distributor Licenses”).

10.5 Pro-rations/Taxes. All expenses, sales taxes, personal property taxes and
assessments which are past due or have become due and payable relating to any of the
Acquired Assets that arise in connection with the smart USA’s operations before the Closing
Date will be paid by smart USA, together with any penalty or interest thereon. All
expenses, sales taxes, personal property taxes, and assessments which become due and payable
relating to of the Acquired Assets which arise in connection with the Closing or the
operation of the DVIUSA’s business on or after the Closing Date shall be paid by DVIUSA
together with any penalty or interest thereon. Current personal property taxes on the Fixed
Assets will be prorated and adjusted between DVIUSA and smart USA as of the Closing Date in
a manner that is customary in the jurisdiction where the Acquired Assets are located. If
current tax bills are unavailable at the Closing Date, the most recent tax bills will be
used for proration purposes and taxes will be re-prorated between DVIUSA and smart USA when
the current year’s tax bills are received. Any amounts owed by DVIUSA or smart USA with
respect to such re-proration will be paid to the other within thirty (30) days of the
determination of such re-proration. Any sales conveyance or transfer taxes imposed as a
result of this transaction shall be paid by DVIUSA.

10.6 smart USA Employees. A list of current smart USA employees has previously
been provided to DVIUSA (the “Employees”). DVIUSA shall reimburse smart USA for the
payroll costs of Employees from February 14, 2011 to the Closing Date, such amount to be
paid at Closing. DVIUSA shall have the right to interview and offer employment to any of the
Employees who are not being retained by an affiliate of smart USA. If any Employees are not
offered or do not accept offers of employment by DVIUSA or a smart affiliated company, then
smart USA shall offer such employees a reasonable severance package (including the cost of
company contributions towards
monthly medical plan costs during the severance period) in the amounts previously approved
by DVIUSA. DVIUSA shall reimburse smart USA such severance amounts and for any stay on
bonuses made by smart USA to an Employee. smart USA shall be responsible for all other
employee benefit obligations resulting from the severance of an Employee from smart USA such
as payment of unused sick time and vacation days.

 

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10.7 Dealer Network. DVIUSA shall not assume any of the smart USA Passenger
Car Dealer Agreements (the “smart Dealer Agreements”) which shall terminate pursuant
to the terms of those agreements.

10.7(a) Continuing smart Dealers. DVIUSA shall offer a new or
replacement dealer agreement (an “DVIUSA Dealer Agreement”) to certain
current smart dealers (the “Continuing smart Dealers”). If a Continuing
smart Dealer accepts the DVIUSA Dealer Agreement then DVIUSA and the Continuing
smart Dealer shall duly execute the DVIUSA Dealer Agreement upon the Closing Date,
provided that the Continuing smart Dealer shall have previously executed a
termination agreement with smart USA terminating the smart Dealer Agreement and
releasing smart USA from all obligations under the smart Dealer Agreement and
applicable law. If a Continuing smart Dealer refuses to sign the DVIUSA Dealer
Agreement then it shall be considered a Non-continuing smart Dealer as defined in
sub-section (b) below.

10.7(b) Non-continuing smart Dealers. DVIUSA does not intend to offer
a DVIUSA Dealer Agreement to certain smart dealers (the “Non-continuing smart
Dealers”). On or prior to the Closing Date, smart USA shall present an offer to
repurchase certain dealer owned assets which may be required and/or make a
negotiated settlement payment to the dealer (collectively, the “Dealer
Payments”) which a Non-continuing smart Dealer would receive in exchange for
terminating the smart Dealer Agreement and releasing smart USA and DVIUSA from all
obligations under the smart Dealer Agreement and applicable law. DVIUSA shall
reimburse smart USA for all reasonably required costs of terminating the
Non-continuing smart Dealers including, without limitation, reimbursement of the
Dealer Payments.

10.7(c) Dealer Protest. If any smart Non-continuing Dealer files a
protest, objection, petition or claim with a court, department of motor vehicles
board, administrative agency or other similar entity having jurisdiction over the
matter (a “Protest”) then smart USA shall assume and undertake the control
of the defense of the Protest including the engagement of outside counsel reasonably
acceptable to DVIUSA. smart USA shall discuss and keep DVIUSA apprised of the
status of the Protest and DVIUSA shall provide input regarding strategic decisions,
document filings and settlement offers. DVIUSA shall reimburse smart USA for
payments made to any Non-continuing Dealer associated with the termination of the
Non-continuing Dealer, including settlement payments and judgments and reasonable
outside counsel costs.

10.7(d) Interim smart USA Dealers. smart USA shall offer the smart USA
dealer agreement to certain new dealers (the “smart USA Interim Dealers”)
with the intention that such dealer agreements shall terminate at Closing as set
forth in Section 10.7(a) above. DVIUSA agrees to indemnify, defend and hold harmless
smart USA from any Costs arising out of the appointment of any smart USA Interim
Dealer, including the termination of the smart USA Interim Dealer
agreements, whether or not this Agreement is terminated prior to or after
Closing, excluding ordinary course liabilities incurred in the day-to-day business
operations of the smart USA Interim Dealers.

 

10

 

10.8 Litigation. A list of the claims, causes of action and suits filed or
alleged against smart USA in a court, arbitration forum or similar venue has previously been
provided to DVIUSA and shall be updated as of the Closing Date (the “Open
Litigation”). Prior to the Closing Date, smart USA shall provide copies of its files,
documents and pleadings relating to the Open Litigation and on the Closing Date, DVIUSA
shall assume and undertake the defense of the Open Litigation with counsel of its choice.
DVIUSA shall be liable for all costs, fees and expenses relating to the Open Litigation and
litigation subsequently filed against smart USA (the “Subsequent Litigation”),
including any costs of outside counsel and settlement payments or judgment payments against
smart USA. DVIUSA shall control all aspects of the defense of the Open Litigation and
Subsequent Litigation and make all strategic and settlement decisions, provided that DVIUSA
shall make no decision which will result in an adverse impact either financially or to the
reputation of smart USA without the prior written consent of smart USA. Notwithstanding
anything to the contrary herein, smart USA shall be responsible for all costs incurred prior
to the Closing Date relating to the Open Litigation.

10.9 Government Agencies/Recalls. From and after the Closing Date, DVIUSA
shall be the responsible party for periodic reporting requirements and any request for data
or information and any allegations or inquires from the National Highway Traffic Safety
Administration, the Environmental Protection Agency or any other federal, state or local
government or government agency concerning suspected or alleged safety defects or
noncompliance with any governmental safety standard or regulation or governmental emissions
control or fuel economy standard or regulation or other applicable law regarding any smart
fortwo vehicle regardless of whether the vehicle was distributed by DVIUSA or smart USA.
DVIUSA shall make all filings and notifications required to notify such agencies that it is
the responsible party for any smart vehicle related matters. In the event of a finding by
any governmental agency of any safety defect or noncompliance with any governmental safety
standard or regulation or governmental emissions control or fuel economy standard or
regulation or other applicable law relating to any smart fortwo vehicles, (i) negotiations
with that governmental agency about the amount of civil penalties, fines or other monetary
assessment, or a recall or notification campaign, and (ii) a decision on whether to
challenge the findings of such, shall be conducted or made solely by DVIUSA and DVIUSA shall
be responsible for any penalties fines or assessments levied by the government agency. In
the event that it is determined by DVIUSA or the applicable governmental agency, that a
recall campaign is required with respect to any smart fortwo vehicle (“Recall”),
DVIUSA shall be responsible for (w) conducting and coordinating all aspects of the Recall,
(x) reimbursement to dealers for performing Recalls, (y) fines or penalties assessed by the
applicable governmental agency and (z) all other associated Recall costs.

On or before Closing, smart USA shall provide to DVIUSA all prior governmental
reporting and hereby represents and certifies that prior to Closing, it complied with all
reporting requirements and any inquiries from any governmental agency other than failures
unknown to smart USA potentially resulting from misreporting of information from Daimler to
smart USA (if any). smart USA hereby indemnifies and holds harmless
DVIUSA from any loss caused by a breach of this representation caused by the negligence
of smart USA.

 

11

 

10.10 Confidentiality. DVIUSA and smart USA agree that the terms of this
Agreement are strictly confidential and shall not, except as set forth herein, be disclosed
to any third party whomsoever via a press release or other form of communication without the
prior written consent of the other party, except (1) to their respective officers, directors
and professional representatives, (2) as may be required by law (including federal or state
securities laws or regulation of the New York Stock Exchange) or (3) in response to any
subpoena or other legal process, provided that before making any disclosure pursuant to (2)
or (3) above, the disclosing party shall give the non-disclosing party as much prior notice
as practical to enable the non-disclosing party to seek, at its sole discretion, an
appropriate order preventing such disclosure or to comment on the proposed disclosure.

10.11 Privacy. Notwithstanding anything herein to the contrary, with respect
to all Personal Information (as defined below) owned by smart USA that is transferred to
DVIUSA in connection with this transaction, DVIUSA shall, and shall cause its affiliates
and any other third party who has access to such Personal Information, to at all times
comply with the applicable law and DVIUSA’s privacy policy, including with respect to
using, accessing, storing, handling, processing, transmitting and disposing of such
Personal Information. DVIUSA’s privacy policy shall provide protection and security of the
Personal Information that is equal to or greater than the protection and security provided
by the current smart USA privacy policy. “Personal Information” means any information
relating to an identified or identifiable living individual, including (i) first initial or
first name and last name; (ii) home address or other physical address, including street
name and name of city or town; (iii) e-mail address or other online contact information;
(iv) telephone number; (v) social security number or other government-issued personal
identifier such as a tax identification number or driver’s license number; (vi) date of
birth; and (vii) any other information that is combined with any of the above.

11. Indemnification.

11.1 smart USA will indemnify, defend and hold harmless DVIUSA from and against any and
all post-Closing liabilities, losses, costs, damages, expenses, claims, fees or other
disbursements (collectively, “Costs”) arising from or related to: (i) any
misrepresentation or breach of any covenant, warranty or agreement made by smart USA in this
Agreement; or (ii) any liabilities of smart USA’s business prior to the Closing which are
not Assumed Liabilities or otherwise expressly assumed by DVIUSA hereunder.

11.2 DVIUSA will indemnify, defend and hold harmless smart USA from and against any and
all Costs arising from or related to (i) any misrepresentation or breach of any covenant,
warranty or agreement made by DVIUSA in this Agreement; (ii) the use or ownership of the
Acquired Assets and the operation of the smart distribution business after the Closing Date;
(iii) the DVIUSA Dealer Agreement; (iv) any unfulfilled obligations of Daimler under the
Distributor Agreement which continue post-Closing; and (v) the Assumed Liabilities.

 

12

 

11.3 Any claim for indemnity under this Section 11 shall be made by written
notice to the indemnifying party specifying in reasonable detail the basis of the claim.
The indemnified party will give prompt written notice to the indemnifying party of any claim
by a third party against the indemnified party which might give rise to a claim against the
indemnifying party under this Section 11, stating the nature and basis of
such claim, and if ascertainable, the amount thereof. In connection with any such
third-party claim, the indemnifying party may, at its election and expense, assume the
defense of such third-party claim, provided that the indemnifying party shall have
acknowledged in writing its obligation to indemnify in respect of such third-party claim.
Even if the indemnifying party assumes the defense of a third party claim, the indemnified
party may elect to participate in the defense of the claim at its own expense.

11.4 The respective representations, warranties, covenants, indemnities and agreements
of each of the parties to this Agreement except covenants and agreements which are expressly
required to be performed and are performed in full on or before the Closing Date or as
otherwise expressly stated herein, shall survive following the Closing Date and the
consummation of the transactions contemplated by this Agreement. In the event of a breach
of any such representations, warranties or covenants, the party to whom such
representations, warranties or covenants have been made shall have all rights and remedies
for such breach available to it under the provisions of this Agreement or otherwise, whether
at law or in equity, regardless of any disclosure to, or investigation made by or on behalf
of, such party on or before the Closing Date.

12. Notices. All notices or other communications required or permitted under this
Agreement shall be given in writing and shall be deemed sufficient if delivered by hand, recognized
overnight delivery service for next business day delivery or facsimile transmission (with original
to follow by mail) or mailed by registered or certified mail, postage prepaid (return, receipt
requested), as follows:

If to DVIUSA:

Mercedes-Benz USA, LLC

One Mercedes Drive

Montvale, New Jersey 07645

Attn: Tracey Matura

With a copy to:

Mercedes-Benz USA, LLC

One Mercedes Drive

Montvale, New Jersey 07645

Attn: General Counsel

If to smart USA :

smart USA Distributor LLC

2555 Telegraph Road

Bloomfield Hills, MI 48302

Attn: Walt Czarnecki, Jr.

 

13

 

13. Termination. This Agreement may be terminated as follows:

13.1 By DVIUSA. Upon notice to smart USA if any of DVIUSA’s conditions
precedent have not been satisfied as of the Closing Date or a reasonable time thereafter.
Upon such termination, this Agreement shall have no further force and effect and neither
party shall have any further obligation to the other except that the agreements and
covenants in Sections 3 (in its entirety), 4.2, 4.3, 10 (in its entirety), 11 (in its
entirety), 12 (in its entirety) and 14 (in its entirety) shall survive.

13.2 By smart USA. Upon notice to DVIUSA if any of smart USA’s conditions
precedent have not been satisfied as of the Closing Date or a reasonable time thereafter.
Upon such termination, and provided that DVIUSA is not in default, this Agreement shall have
no further force and effect and neither party shall have any further obligation to the other
except that the agreements and covenants in Sections 3 (in its entirety), 4.2, 4.3, 10 (in
its entirety), 11 (in its entirety), 12 (in its entirety) and 14 (in its entirety) shall
survive.

13.3 Breach. A party shall not be entitled to terminate this Agreement as set
forth in this Section 13 if such party’s breach of this Agreement has prevented the
Closing from occurring.

13.4 Remedies for Breach. In the event that either party breaches this
Agreement by failing to close this transaction pursuant to the terms of this Agreement, the
non-breaching party shall be entitled to pursue any and all available additional legal and
equitable remedies including, but not limited to, the remedy of specific performance.

14. Miscellaneous.

14.1 Cost and Expenses. Except where expressly stated to the contrary, each
party agrees that it shall pay its own costs and expenses in connection with the
transactions contemplated by this Agreement, including without limitation any legal and
accounting fees.

14.2 Brokers. Each party represents and warrants to the other that it has not
dealt with any third party in such a manner as to cause any such party to be entitled to any
brokers’ or finders’ commissions in connection with this transaction.

14.3 Entire Agreement; Amendments. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and supersedes all
prior agreements, written or oral. This Agreement may not be amended or modified except by
a written instrument executed by all parties hereto.

14.4 Governing Law. The provisions of this Agreement shall be governed by and
construed in accordance with the laws of the State of Michigan, without giving effect to
rules governing conflicts of laws.

14.5. Invalidity. The invalidity or partial invalidity of any provision of
this Agreement shall affect only such provision or part thereof and the balance of this
Agreement shall remain in full force and effect.

 

14

 

14.6. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and part of one and the same
Agreement. Telefaxed signatures shall be deemed originals.

14.7 Assignment. This Agreement and all rights and obligations hereunder
shall inure to the benefit of the parties hereto and their respective permitted successors
and assigns. This Agreement and the rights hereunder shall not be assigned by smart USA or
DVIUSA without the prior written consent of the other party.

14.8 Severability. If any one or more of the provisions of this Agreement
shall be held to be invalid, illegal or unenforceable, the validity, legality or
enforceability of the remaining provisions of this Agreement shall not be affected thereby
and no provision shall be deemed dependent on any other provision unless so expressed in
this Agreement. To the extent permitted by applicable law, each party waives any provision
of law which renders any provision of this Agreement invalid, illegal or unenforceable in
any respect.

IN WITNESS WHEREOF, the parties hereto have set forth their hands and seals as of the day and
year first above written.

	 	 	 	 	 	 	 
	smart USA Distributor LLC

	 	 	 	Daimler Vehicle Innovations USA LLC	 	 
	 
	 	 	 	 	 	 
	/s/ Jill Lajdziak
 

By: Jill Lajdziak

	 	 	 	/s/ Herbert Werner
 

By: Herbert Werner
	 	 
	Its: President

	 	 	 	Its: 	 	 
	Date: 6/16/11

	 	 	 	Date: 6/16/11	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Charles Shady
 

By: Charles Shady
	 	 
	 

	 	 	 	Its: General Counsel	 	 
	 

	 	 	 	Date: 6/16/11	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Ernst H. Lieb
 

By: Ernst H. Lieb
	 	 
	 

	 	 	 	Its: President & CEO	 	 
	 

	 	 	 	Date: 6/16/11	 	 

 

15

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