Document:

EX-10.4

 Exhibit 10.4 

FORM OF 

STOCKHOLDERS’ AGREEMENT 

DATED AS OF                , 2019 

AMONG 
 EXETER FINANCE
CORPORATION 
 AND 

THE OTHER PARTIES HERETO 
  

 Table of Contents 

 

							
	 	 	 	  	Page	 
	
	Article I	  

	
	INTRODUCTORY MATTERS	  

			
	 1.1
	 	 Defined Terms
	  	 	1	 
	 1.2
	 	 Construction
	  	 	4	 
	
	Article II	  

	
	CORPORATE GOVERNANCE MATTERS	  

			
	 2.1
	 	 Election of Directors
	  	 	4	 
	 2.2
	 	 Compensation
	  	 	6	 
	 2.3
	 	 Other Rights of Stockholder Designees
	  	 	6	 
	
	Article III	  

	
	INFORMATION; VCOC	  

			
	 3.1
	 	 Books and Records; Access
	  	 	7	 
	 3.2
	 	 Certain Reports
	  	 	7	 
	 3.3
	 	 VCOC
	  	 	7	 
	
	Article IV	  

	
	ADDITIONAL COVENANTS	  

			
	 4.1
	 	 Pledges
	  	 	10	 
	 4.2
	 	 Spin-Offs or Split-Offs
	  	 	10	 
	
	Article V	  

	
	GENERAL PROVISIONS	  

			
	 5.1
	 	 Termination
	  	 	11	 
	 5.2
	 	 Notices
	  	 	11	 
	 5.3
	 	 Amendment; Waiver
	  	 	12	 
	 5.4
	 	 Further Assurances
	  	 	12	 
	 5.5
	 	 Assignment
	  	 	12	 
	 5.6
	 	 Third Parties
	  	 	13	 
	 5.7
	 	 Governing Law
	  	 	13	 
	 5.8
	 	 Jurisdiction; Waiver of Jury Trial
	  	 	13	 
	 5.9
	 	 Specific Performance
	  	 	13	 
	 5.10
	 	 Entire Agreement
	  	 	13	 

  
 i 

							
	 5.11
	 	 Severability
	  	 	13	 
	 5.12
	 	 Table of Contents, Headings and Captions
	  	 	13	 
	 5.13
	 	 Grant of Consent
	  	 	14	 
	 5.14
	 	 Counterparts
	  	 	14	 
	 5.15
	 	 Effectiveness
	  	 	14	 
	 5.16
	 	 No Recourse
	  	 	14	 

  

  
 ii 

 STOCKHOLDERS’ AGREEMENT 

This Stockholders’ Agreement is entered into as
of                , 2019 by and among Exeter Finance Corporation, a Delaware corporation (the “Company”), and each of the other parties identified on
the signature pages hereto (the “Investor Parties”). 
 RECITALS: 

WHEREAS, the Company is currently contemplating an underwritten initial public offering (“IPO”) of shares of its Class A
Common Stock (as defined below); and 
 WHEREAS, in connection with the IPO, the Company and the Investor Parties wish to set forth certain
understandings between such parties, including with respect to certain governance matters. 
 NOW, THEREFORE, the parties agree as follows:

 ARTICLE I 

INTRODUCTORY MATTERS 

1.1 Defined Terms. In addition to the terms defined elsewhere herein, the following terms have the following meanings when used herein
with initial capital letters: 
 “Affiliate” has the meaning set forth in Rule
12b-2 promulgated under the Exchange Act, as in effect on the date hereof. 

“Agreement” means this Stockholders’ Agreement, as the same may be amended, supplemented, restated or otherwise modified
from time to time in accordance with the terms hereof. 
 “Beneficially Own” has the meaning set forth in Rule 13d-3 promulgated under the Exchange Act. 
 “Blackstone Designator” means the Blackstone
Party, or any group of Blackstone Parties collectively, then holding of record a majority of Outstanding Exeter Interests held of record by all Blackstone Parties. 

“Blackstone Designee” has the meaning set forth in Section 2.1(a) hereof. 

“Blackstone Entities” means the entities comprising the Blackstone Parties and their Affiliates and their respective
successors and Permitted Assigns. 
 “Blackstone Parties” means the entities listed on the signature pages hereto under the
heading “Blackstone Parties” and any other Blackstone Entities that may from time to time become parties hereto. 

“Board” means the board of directors of the Company. 

 “Class A Common Stock” means the shares of Class A
common stock, par value $0.0001 per share, of the Company, and any other capital stock of the Company into which such stock is reclassified or reconstituted. 

“Class B Common Stock” means the shares of Class B common stock, par value $0.0001 per share, of the
Company, and any other capital stock of the Company into which such stock is reclassified or reconstituted. 
 “Closing
Date” means the date of the closing of the IPO. 
 “Common Stock” means collectively the Class A Common Stock
and the Class B Common Stock. 
 “Company” has the meaning set forth in the Preamble. 

“Control” (including its correlative meanings, “Controlled by” and “under common Control
with”) means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) of a
Person. 
 “Director” means any director of the Company. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder,
as the same may be amended from time to time. 
 “Exeter Finance LLC Agreement” means the Amended and Restated Limited
Liability Company Agreement of Exeter Finance LLC, dated on or about the date hereof, as such agreement may be amended from time to time. 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, and any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

“Information” has the meaning set forth in Section 3.1 hereof. 

“Investor Parties” has the meaning set forth in the Preamble. 

“IPO” has the meaning set forth in the Recitals. 

“Law” means any statute, law, regulation, ordinance, rule, injunction, order, decree, governmental approval, directive,
requirement, or other governmental restriction or any similar form of decision of, or determination by, or any interpretation or administration of any of the foregoing by, any Governmental Authority. 

“LLC Units” means common units and any other class of units or interests that is established in Exeter Finance LLC. 

“Navigation” means Navigation Capital Partners II LP. 

  
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 “Navigation Designee” has the meaning set forth in
Section 2.1(a) hereof. 
 “Navigation Entity” means Navigation, its Affiliates and their
respective successors and Permitted Assigns. 
 “Outstanding Exeter Interests” means, collectively, (i) the
outstanding shares of Class A Common Stock and (ii) the LLC Units held by Persons other than the Company. For purposes of calculating any proportion of Outstanding Exeter Interests, the number of Outstanding Exeter Interests held by any
Person shall consist of the sum of (a) the number of shares of Class A Common Stock held by such Person and (b) the number of shares of Class A Common Stock such Person would receive upon the exchange of all LLC Units held by
such Person in accordance with the Exeter Finance LLC Agreement. 
 “Permitted Assigns” means, with respect to each
Blackstone Entity and Navigation Entity, a Transferee of shares of Common Stock that agrees to become party to, and to be bound to the same extent as its Transferor by the terms of, this Agreement. 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, or other form of business organization, whether or not regarded as a legal entity under applicable Law, or any Governmental Authority or any department, agency or political
subdivision thereof. 
 “Plan Asset Regulation” has the meaning set forth in Section 3.3(a)
hereof. 
 “Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership,
association or other business entity of which: (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, representatives or
trustees thereof is at the time owned or Controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; or (ii) if a limited liability company, partnership, association or
other business entity, a majority of the total voting power of stock (or equivalent ownership interest) of the limited liability company, partnership, association or other business entity is at the time owned or Controlled, directly or indirectly,
by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other
business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or Control the managing member, managing director or other governing
body or general partner of such limited liability company, partnership, association or other business entity. 
 “Stockholder
Designator” means, collectively, the Blackstone Designator and Navigation. 
 “Stockholder Designee” means,
collectively, the Blackstone Designees and the Navigation Designee. 

  
 3 

 “Total Number of Directors” means, as of any time of determination, the
total number of directors then constituting the full Board (including any vacancies). 
 “Transfer” (including its
correlative meanings, “Transferor,” “Transferee” and “Transferred”) shall mean, with respect to any security, directly or indirectly, to sell, contract to sell, give, assign, hypothecate, pledge,
encumber, grant a security interest in, offer, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any economic, voting or other
rights in or to such security. When used as a noun, “Transfer” shall have such correlative meaning as the context may require. 

“VCOC Investor” has the meaning set forth in Section 3.3(a) hereof. 

1.2 Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual
intent, and no rule of strict construction will be applied against any party. Unless the context otherwise requires: (a) “or” is disjunctive but not exclusive, (b) words in the singular include the plural, and in the plural
include the singular, and (c) the words “hereof,” “herein,” and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section references are to this Agreement unless otherwise specified. 
 ARTICLE II 

CORPORATE GOVERNANCE MATTERS 

2.1 Election of Directors. 

(a) Following the Closing Date, the Company shall take all such action in accordance with this Agreement as shall be necessary to ensure that
(1) the number of Blackstone Designees serving as Directors of the Company will be equal to: (i) if the Blackstone Entities collectively Beneficially Own 50% or more of the total Outstanding Exeter Interests, the lowest whole number that
is greater than 50% of the Total Number of Directors; (ii) if the Blackstone Entities collectively Beneficially Own at least 40% (but less than 50%) of the total Outstanding Exeter Interests, the lowest whole number that is greater than 40% of
the Total Number of Directors; (iii) if the Blackstone Entities collectively Beneficially Own at least 30% (but less than 40%) of the total Outstanding Exeter Interests, the lowest whole number that is greater than 30% of the Total Number of
Directors; (iv) if the Blackstone Entities collectively Beneficially Own at least 20% (but less than 30%) of the total Outstanding Exeter Interests, the lowest whole number that is greater than 20% of the Total Number of Directors; and
(v) if the Blackstone Entities collectively Beneficially Own at least 5% (but less than 20%) of the total Outstanding Exeter Interests, the lowest whole number that is greater than 10% of the Total Number of Directors and (2) so long as
the Navigation Entities collectively Beneficially Own at least 5% of the total Outstanding Exeter Interests, one Navigation Designee shall serve as a Director of the Company. In furtherance of the foregoing, in connection with any vote or consent of
the stockholders of the Company with respect to the election of Directors, the Blackstone Designator and Navigation, as applicable, shall have the right, but not the obligation, 

  
 4 

 
to designate, and the individuals nominated for election as Directors by or at the direction of the Board or a duly-authorized committee thereof shall include, a number of individuals such that,
upon the election of each such individual, and each other individual nominated by or at the direction of the Board or a duly-authorized committee of the Board as a Director, and taking into account any Director continuing to serve as such without
the need for re-election, the number of Blackstone Designees and Navigation Designees serving as Directors of the Company will be equal to the number of Blackstone Designees and Navigation Designees required
by the preceding sentence, determined based on the total Outstanding Exeter Interests that are Beneficially Owned by each of the Blackstone Entities collectively and the Navigation Entities collectively as of the record date for such vote or
consent. The Company shall, to the fullest extent permitted by Law, include in the slate of nominees recommended by the Board at any meeting of stockholders called for the purpose of electing Directors, the persons designated pursuant to this
Section 2.1(a) and use its best efforts to cause the election of each such designee to the Board, including nominating each such individual to be elected as a Director as provided herein, recommending such individual’s
election and soliciting proxies or consents in favor thereof. In the event that any Blackstone Designee or Navigation Designee shall fail to be elected to the Board at any meeting of stockholders called for the purpose of electing directors (or
consent in lieu of meeting), the Company shall use is best efforts to cause the Blackstone Designee or Navigation Designee, as the case may be (or a new designee), to be elected to the Board, as soon as possible, and the Company shall take or cause
to be taken, to the fullest extent permitted by law, at any time and from time to time, all actions necessary to accomplish the same, including, without limitation, actions to effect an increase in the Total Number of Directors. Each individual whom
the Blackstone Designator shall actually designate pursuant to this Section 2.1 and who is thereafter elected and qualifies to serve as a Director shall be referred to herein as a “Blackstone Designee,” and each individual whom
Navigation shall actually designate pursuant to this Section 2.1 and who is thereafter elected and qualifies to serve as a Director shall be referred to herein as a “Navigation Designee.” 

(b) If at any time any of the Blackstone Designator or Navigation has designated fewer than the total number of individuals that it is then
entitled to designate pursuant to Section 2.1(a) hereof, the Blackstone Entities or Navigation, as applicable, shall have the right, at any time and from time to time, to designate such additional individuals which it is entitled to so
designate, in which case, any individuals nominated by or at the direction of the Board or any duly-authorized committee thereof for election as Directors to fill any vacancy on the Board shall include such designees, and the Company shall use its
best efforts to (i) effect the election of such additional designees, whether by increasing the size of the Board or otherwise, and (ii) cause the election of such additional designees to fill any such newly-created vacancies or to fill
any other existing vacancies. 
 (c) Directors are subject to removal pursuant to the applicable provisions of the certificate of
incorporation of the Company; provided, however, for as long as this Agreement remains in effect, other than for cause, the Blackstone Designees may only be removed with the consent of the Blackstone Designator and the Navigation Designee may only
be removed with the consent of Navigation, in each case delivered in accordance with Section 5.13 hereof. 

  
 5 

 (d) In the event that a vacancy is created at any time by the death, disability, retirement,
removal (with or without cause), disqualification, resignation or removal of any Blackstone Designee or Navigation Designee or by an increase in the size of the Board, any individual nominated by or at the direction of the Board or any
duly-authorized committee thereof to fill such vacancy shall be, and the Company shall use its best efforts to cause such vacancy to be filled, as soon as possible, by, a new designee of the Blackstone Designator, if such Director was designated by
the Blackstone Designator, or Navigation, if such Director was designated by Navigation, and the Company shall take, to the fullest extent permitted by Law, at any time and from time to time, all actions necessary to accomplish the same. 

(e) Each Investor Party hereby agrees to vote in favor of and to consent to the Blackstone Designees and the Navigation Designee in connection
with each vote taken or written consent executed in connection with the election of Directors to the Board, and each Investor Party agrees not to seek to remove or replace the Blackstone Designees or the Navigation Designee. 

(f) In addition to any vote or consent of the Board or the stockholders of the Company required by applicable Law or the certificate of
incorporation or bylaws of the Company, and notwithstanding anything to the contrary in this Agreement, for so long as this Agreement is in effect, any action by the Board to increase or decrease the Total Number of Directors (other than any
increase in the Total Number of Directors in connection with the election of one or more Directors elected exclusively by the holders of one or more classes or series of the Company’s stock other than Common Stock) shall require the prior
written consent of the Blackstone Designator, delivered in accordance with Section 5.13 hereof. 
 2.2
Compensation. Except to the extent any Stockholder Designator may otherwise notify the Company, the Stockholder Designees shall be entitled to compensation consistent with the compensation received by other
non-employee Directors, including any fees and equity awards, provided, that (x) to the extent any Director compensation is payable in the form of equity awards, at the election of a Stockholder Designee,
in lieu of any equity award, such compensation shall be paid in an amount of cash equal to the value of the equity award as of the date of the award, with any such cash subject to the same vesting terms, if any, as the equity awarded to other
Directors and (y) at the election of a Stockholder Designee, any Director compensation (whether cash, equity awards and/or cash in lieu of equity as may be designated by the electing Stockholder Designee) shall be paid to a Stockholder or an
Affiliate thereof specified by such Stockholder Designee rather than to such Stockholder Designee. If the Company adopts a policy that Directors own a minimum amount of equity in the Company, Stockholder Designees shall not be subject to such
policy. 
 2.3 Other Rights of Stockholder Designees. Except as provided in Section 2.2, each Stockholder Designee serving on the
Board shall be entitled to the same rights and privileges applicable to all other members of the Board generally or to which all such members of the Board are entitled. In furtherance of the foregoing, the Company shall indemnify, exculpate, and
reimburse fees and expenses of the Stockholder Designees (including by entering into an indemnification agreement in a form substantially similar to the Company’s form director indemnification agreement) and provide the Stockholder Designees
with director and officer insurance to the same extent it indemnifies, exculpates, reimburses and provides insurance for the other members of the Board pursuant to the certificate of incorporation or bylaws of the Company, applicable law or
otherwise. 

  
 6 

 ARTICLE III 

INFORMATION; VCOC 

3.1 Books and Records; Access. The Company shall, and shall cause its Subsidiaries to, (a) permit the Blackstone Entities and
their respective designated representatives (or other designees), at reasonable times and upon reasonable prior notice to the Company, to review the books and records of the Company or any of such Subsidiaries and to discuss the affairs, finances
and condition of the Company or any of such Subsidiaries with the officers of the Company or any such Subsidiary and (b) provide the Blackstone Entities all information of a type, at such times and in such manner as is consistent with the
Company’s past practice or that is otherwise reasonably requested by such Blackstone Entities from time to time (all such information so furnished pursuant to this Section 3.1, the “Information”). Notwithstanding the foregoing,
that the Company shall not be required to disclose any privileged Information of the Company so long as the Company has used commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the
Blackstone Entities without the loss of any such privilege. 
 3.2 Certain Reports. Company shall deliver or cause to be delivered to
the Blackstone Entities at their request: 
 (a) to the extent otherwise prepared by the Company, operating and capital expenditure budgets
and periodic information packages relating to the operations and cash flows of the Company and its Subsidiaries; and 
 (b) to the extent
otherwise prepared by the Company, such other reports and information as may be reasonably requested by the Blackstone Entities; provided, however, that the Company shall not be required to disclose any privileged information of the
Company so long as the Company has used commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the Blackstone Entities without the loss of any such privilege. 

3.3 VCOC. 
 (a) With
respect to each Blackstone Entity that is intended to qualify its direct or indirect investment in the Company as a “venture capital investment” as defined in the Department of Labor regulations codified at 29 CFR Section 2510.3-101 (the “Plan Asset Regulation”) (each, a “VCOC Investor”), for so long as the VCOC Investor, directly or through one or more Subsidiaries, continues to hold
any shares of Common Stock (or other securities of the Company into which such shares of Common Stock may be converted or for which such shares of Common Stock may be exchanged), without limitation or prejudice of any of the rights provided to the
Blackstone Entities hereunder, the Company shall, with respect to each such VCOC Investor: 

  
 7 

 (i) provide each VCOC Investor or its designated representative with: 

 

	 	(A)	 upon reasonable notice and at mutually convenient times, the right to visit and inspect any of the offices and
properties of the Company and its Subsidiaries and inspect and copy the books and records of the Company and its Subsidiaries; 

  

	 	(B)	 as soon as available and in any event within 45 days after the end of each of the first three quarters of each
fiscal year of the Company, consolidated balance sheets of the Company and its Subsidiaries as of the end of such period, and consolidated statements of income and cash flows of the Company and its Subsidiaries for the period then ended prepared in
conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, and subject to the absence of footnotes and to year-end
adjustments; 

  

	 	(C)	 as soon as available and in any event within 120 days after the end of each fiscal year of the Company, a
consolidated balance sheet of the Company and its Subsidiaries as of the end of such year, and consolidated statements of income and cash flows of the Company and its Subsidiaries for the year then ended prepared in conformity with generally
accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, together with an auditor’s report thereon of a firm of established national reputation; 

 

	 	(D)	 to the extent the Company is required by Law or pursuant to the terms of any outstanding indebtedness of the
Company to prepare such reports, any annual reports, quarterly reports and other periodic reports pursuant to Section 13 or 15(d) of the Exchange Act, actually prepared by the Company as soon as available; and 

 

	 	(E)	 upon written request by the VCOC Investor, copies of all materials provided to the Board, subject to
appropriate protections with respect to confidentiality and preservation of attorney-client privilege; 

 provided
that, in each case, if the Company makes the information described in clauses (B), (C) and (D) of this Section 3.3(a)(i) available through public filings on the EDGAR System or
any successor or replacement system of the U.S. Securities and Exchange Commission, the requirement to deliver such information shall be deemed satisfied; 

  
 8 

 (ii) make appropriate officers and/or Directors of the Company available,
and cause the officers and directors of its Subsidiaries to be made available, periodically and at such times as reasonably requested by each VCOC Investor, upon reasonable notice and at mutually convenient times, for consultation with such VCOC
Investor or its designated representative with respect to matters relating to the business and affairs of the Company and its Subsidiaries; 

(iii) to the extent that the VCOC Investor requests to receive such information and rights, and to the extent consistent with
applicable Law or listing standards (and with respect to events which require public disclosure, only following the Company’s public disclosure thereof through applicable securities law filings or otherwise), inform each VCOC Investor or its
designated representative in advance with respect to any significant corporate actions, and to provide (or cause to be provided) each VCOC Investor or its designated representative with the right to consult with the Company and its Subsidiaries with
respect to such actions should the VCOC Investor elect to do so; provided, however, that this right to consult must be exercised within five (5) days after the Company informs the VCOC Investor of the proposed corporate action;
provided, further, that the Company shall be under no obligation to provide the VCOC Investor with any material non-public information with respect to such corporate action; and 

(iv) provide each VCOC Investor or its designated representative with such other rights of consultation which the VCOC
Investor’s counsel may determine in writing to be reasonably necessary under applicable legal authorities promulgated after the date hereof to qualify its investment in the Company as a “venture capital investment” for purposes of the
Plan Asset Regulation; provided that the parties agree that any such rights of consultation shall be of a nature consistent with those granted above and nothing in this Agreement shall be deemed to require the Company to grant to the VCOC
Investor any additional rights with respect to the governance or management of the Company. 
 (b) The Company agrees to consider, in good
faith, the recommendations of each VCOC Investor or its designated representative in connection with the matters on which it is consulted as described above in this Section 3.3, recognizing that the ultimate discretion with
respect to all such matters shall be retained by the Company. 
 (c) In the event a VCOC Investor or any of its Affiliates Transfers all or
any portion of their investment in the Company to an Affiliated entity that is intended to qualify as a “venture capital operating company” (as defined in the Plan Asset Regulation), such Transferee shall be afforded the same rights with
respect to the Company afforded to the VCOC Investor hereunder and shall be treated, for such purposes, as a third party beneficiary hereunder. 

(d) In the event that the Company ceases to qualify as an “operating company” (as defined in the first sentence of 2510.3-101(c)(1) of the Plan Asset Regulation), or the investment in the Company by a VCOC Investor does not qualify as a “venture capital investment” as defined in the Plan Asset Regulation, then the
Company and each Blackstone Entity will cooperate in good faith to take all reasonable actions necessary, subject to applicable Law, to preserve the VCOC status of each VCOC Investor or the qualification of the investment as a “venture capital
investment,” it being understood that such reasonable actions shall not require a VCOC Investor to purchase or sell any investments. 

  
 9 

 (e) For so long as the VCOC Investor, directly or through one or more Subsidiaries,
continues to hold any shares of Common Stock (or other securities of the Company into which such shares of Common Stock may be converted or for which such shares of Common Stock may be exchanged) and upon the written request of such VCOC Investor,
without limitation or prejudice of any the rights provided to the Blackstone Entities hereunder, the Company shall, with respect to each such VCOC Investor, furnish and deliver, and in its capacity as the managing member of Exeter Finance LLC, cause
Exeter Finance LLC to furnish and deliver, a letter covering the matters set forth in Sections 3.3(a), 3.3(b), 3.3(c) and 3.3(d) hereof in a form and substance satisfactory to such VCOC Investor. 

ARTICLE IV 

ADDITIONAL COVENANTS 

4.1 Pledges or Transfers. Upon the request of any Blackstone Entity or Navigation Entity that wishes to (x) pledge, hypothecate or
grant security interests in any or all of the shares of Common Stock or LLC Units held by it, including to banks or financial institutions as collateral or security for loans, advances or extensions of credit or (y) transfer any or all of the
shares of Common Stock or LLC Units held by it, including to a third party investor, the Company agrees to cooperate with each such Blackstone Entity or Navigation Entity in taking any action reasonably necessary to consummate any such pledge,
hypothecation, grant or transfer, including without limitation, delivery of letter agreements to lenders in form and substance reasonably satisfactory to such lenders (which may include agreements by the Company in respect of the exercise of
remedies by such lenders) and instructing the transfer agent to transfer any such shares of Common Stock subject to the pledge, hypothecation or grant into the facilities of The Depository Trust Company without restricted legends and cooperating in
diligence or other matters as may reasonably be requested by any Blackstone Entity or Navigation Entity in connection with a proposed transfer. 

4.2 Spin-Offs or Split-Offs. In the event that the Company effects the separation of any portion of its business into one or more
entities (each, a “NewCo”), whether existing or newly formed, including without limitation by way of spin-off, split-off,
carve-out, demerger, recapitalization, reorganization or similar transaction, and any Investor Parties will receive equity interests in any such NewCo as part of such separation, the Company shall cause any
such NewCo to enter into a stockholders agreement with the Investor Parties that provides the Investor Parties with rights vis-á-vis such NewCo that are substantially identical to those set forth in this Agreement. 

  
 10 

 ARTICLE V 

GENERAL PROVISIONS 

5.1 Termination. Except for Section 3.3 hereof, this Agreement shall terminate on the earlier to occur with
respect to each of the Blackstone Entities and the Navigation Entities, as the case may be, of (i) such time as the Blackstone Designator or Navigation, as the case may be, is no longer entitled to designate a Director pursuant to
Section 2.1(a) hereof and (ii) the delivery of a written notice by the Blackstone Designator and Navigation to the Company requesting that this Agreement terminate with respect to such party. The VCOC Investors shall
advise the Company when they collectively first cease to Beneficially Own any shares of Common Stock (or other securities of the Company into which such shares of Common Stock may be converted or for which such shares of Common Stock may be
exchanged), whereupon Section 3.3 hereof shall terminate. 
 5.2 Notices. Any notice, designation, request,
request for consent or consent provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) or sent by reputable overnight courier service (charges prepaid) to the Company
at the address set forth below and to any other recipient at the address indicated on the Company’s records, or at such address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending
party. Notices and other such documents will be deemed to have been given or made hereunder when sent by facsimile (receipt confirmed) delivered personally, five (5) days after deposit in the U.S. mail and one (1) day after deposit with a
reputable overnight courier service. 
 The Company’s address is: 

Exeter Finance Corporation 
 222
W. Las Colinas Blvd., Suite 1800 
 Irving, Texas 75039 

Attention: Executive Vice President, General Counsel & Secretary 

Email: Walter.Evans@exeterfinance.com 

Fax:     

with a copy (not constituting notice) to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

Four Times Square 
 New York,
New York 10036 
 Attention: Laura Kaufmann Belkhayat 

Email: Laura.Kaufmann@skadden.com 

Fax: (917) 777-2439 

The Blackstone Entities’ address is: 

The Blackstone Group L.P. 
 345
Park Avenue 
 New York, New York 10154 

Attention: Kelly Wannop 
 Email:
Kelly.Wannop@Blackstone.com 
 Fax: 

  
 11 

 with a copy (not constituting notice) to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

Four Times Square 
 New York,
New York 10036 
 Attention: Laura Kaufmann Belkhayat 

Email: Laura.Kaufmann@skadden.com 

Fax: (917) 777-2439 

The Navigation Entities’ address is: 

Navigation Capital Partners 

1175 Peach Street NE 
 Atlanta,
GA 30361 
 Attention: 
 with
a copy (not constituting notice) to: 
 DLA Piper LLP (US) 

One Atlantic Center 
 1201 West
Peachtree Street, Suite 2800 
 Atlanta, GA 30309-3450 

Attention: Daniel P. Rollman 

5.3 Amendment; Waiver. This Agreement may be amended, supplemented or otherwise modified only by a written instrument executed by the
Company and the other parties hereto. Neither the failure nor delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as
a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 

5.4 Further Assurances. The parties hereto will sign such further documents, cause such meetings to be held, resolutions passed,
exercise their votes and do and perform and cause to be done such further acts and things necessary, proper or advisable in order to give full effect to this Agreement and every provision hereof. To the fullest extent permitted by Law, the Company
shall not directly or indirectly take any action that is intended to, or would reasonably be expected to result in, Blackstone, any Blackstone Entity, Navigation or any Navigation Entity being deprived of the rights contemplated by this Agreement.

 5.5 Assignment. This Agreement will inure to the benefit of and be binding on the parties hereto and their respective successors
and permitted assigns. This Agreement may not be assigned without the express prior written consent of the other parties hereto, and any attempted assignment, without such consents, will be null and void; provided, however, that,
without the prior written consent of the Company, each Blackstone Entity and Navigation Entity may assign this Agreement, in whole or in part, to any of its Permitted Assigns. 

  
 12 

 5.6 Third Parties. Except as provided for in Article II,
Section 3.3 and Section 4.1 hereof with respect to any Blackstone Entity and Navigation Entity, this Agreement does not create any rights, claims or benefits inuring to any Person that is not a
party hereto nor create or establish any third party beneficiary hereto. 
 5.7 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof. 
 5.8
Jurisdiction; Waiver of Jury Trial. In any judicial proceeding involving any dispute, controversy or claim arising out of or relating to this Agreement, each of the parties unconditionally accepts the jurisdiction and venue of the courts of
the State of Delaware or if jurisdiction over the matter is vested exclusively in federal courts, the United States District Court for the District of Delaware, and the appellate courts to which orders and judgments thereof may be appealed. In any
such judicial proceeding, the parties agree that in addition to any method for the service of process permitted or required by such courts, to the fullest extent permitted by law, service of process may be made by delivery provided pursuant to the
directions in Section 5.2 hereof. EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR
RELATING TO THIS AGREEMENT. 
 5.9 Specific Performance. Each party hereto acknowledges and agrees that in the event of any breach of
this Agreement by any of them, the other parties hereto would be irreparably harmed and could not be made whole by monetary damages. Each party accordingly agrees to waive the defense in any action for specific performance that a remedy at law would
be adequate and agrees that the parties, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to specific performance of this Agreement without the posting of bond. 

5.10 Entire Agreement. This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter
hereof. There are no agreements, representations, warranties, covenants or understandings with respect to the subject matter hereof or thereof other than those expressly set forth herein and therein. This Agreement supersedes all other prior
agreements and understandings between the parties with respect to such subject matter. 
 5.11 Severability. If any provision of this
Agreement, or the application of such provision to any Person or circumstance or in any jurisdiction, shall be held to be invalid or unenforceable to any extent, (i) the remainder of this Agreement shall not be affected thereby, and each other
provision hereof shall be valid and enforceable to the fullest extent permitted by law, (ii) as to such Person or circumstance or in such jurisdiction such provision shall be reformed to be valid and enforceable to the fullest extent permitted
by law, and (iii) the application of such provision to other Persons or circumstances or in other jurisdictions shall not be affected thereby. 

5.12 Table of Contents, Headings and Captions. The table of contents, headings, subheadings and captions contained in this Agreement are
included for convenience of reference only, and in no way define, limit or describe the scope of this Agreement or the intent of any provision hereof. 

  
 13 

 5.13 Grant of Consent. Any vote, consent or approval of, or designation by, or other
action of, the Blackstone Designator or Navigation hereunder shall be effective if notice of such vote, consent, approval, designation or action is provided in accordance with Section 5.2 hereof by the Blackstone Entities
or the Navigation Entities, as applicable, holding of record a majority of the Outstanding Exeter Interests then held of record by Blackstone Entities or the Navigation Entities, as applicable, as of the latest date any such notice is so provided.

 5.14 Counterparts. This Agreement and any amendment hereto may be signed in any number of separate counterparts, each of which
shall be deemed an original, but all of which taken together shall constitute one Agreement (or amendment, as applicable). 
 5.15
Effectiveness. This Agreement shall become effective upon the Closing Date. 
 5.16 No Recourse. This Agreement may only be
enforced against, and any claims or cause of action that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement may only be made against the entities that are expressly identified
as parties hereto and no past, present or future Affiliate, director, officer, employee, incorporator, member, manager, partner, stockholder, agent, attorney or representative of any party hereto shall have any liability for any obligations or
liabilities of the parties to this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby. 

[Remainder of Page Intentionally Left Blank] 

  
 14 

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

			
	EXETER FINANCE CORPORATION
		
	By:	 	  

	Name:
	Title:

  

  
 [Signature Page to
Exeter Finance Corporation Stockholders’ Agreement] 

 
			
	BLACKSTONE PARTIES:
	
	[SIGNATURE BLOCKS TO COME]
	
	NAVIGATION CAPITAL PARTNERS II LP.
		
	By:	 	  

		 	Name:
		 	Title:

  

  
 [Signature Page to
Exeter Finance Corporation Stockholders’ Agreement]Blueprint

 

 EXHIBIT 10.1

MOBILESMITH,
INC.

INCENTIVE
STOCK OPTION AGREEMENT

THIS
INCENTIVE STOCK OPTION AGREEMENT, made and entered into as of the
21th day of November, 2016, by and between MobileSmith, Inc., a
Delaware corporation (the “Company”), and _______ (the
“Participant”).

WHEREAS, the
committee appointed under the MobileSmith, Inc. Equity Compensation
Plan (the “Committee”) granted Participant an option to
purchase shares of the Company’s Common Stock, $0.001 par
value per share (the “Common Stock”), pursuant to the
MobileSmith, Inc. 2016 Equity Compensation Plan (the
“Plan”) (capitalized terms used herein shall have the
meanings set out in the Plan unless otherwise specified in this
Agreement); and

WHEREAS, this
Agreement evidences the grant of such option.

NOW,
THEREFORE, in consideration of the foregoing, of the mutual
promises set forth below and of other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound,
agree as follows:

1. Grant of Option. The Committee
hereby grants Participant an option to purchase from the Company,
during the period specified in Section 2 of this Agreement, a total
of ___ shares of Stock, at
the purchase price of $_______ per share (the “Purchase
Price”), in accordance with the terms and conditions stated
in this Agreement. The shares of Stock subject to the option
granted hereby are referred to below as the “Shares,”
and the option to purchase such Shares is referred to below as the
“Option”.

2. Vesting and Exercise of Option.
The Option shall vest and become exercisable in increments in
accordance with the schedule set forth below, provided that the
Option shall vest and become exercisable with respect to an
increment as specified only if Participant is employed with the
Company on the specified date for such increment:

1/12 of
the number of options granted at the end of every quarter starting
the quarter ending December 31, 2016.

 

The
schedule set forth above is cumulative, so that Shares as to which
the Option has become vested and exercisable on and after a date
indicated by the schedule may be purchased pursuant to exercise of
the Option at any subsequent date prior to termination of the
Option. The Option may be exercised at any time and from time to
time to purchase up to the number of Shares as to which it is then
vested and exercisable.

Notwithstanding the
foregoing, the Option shall vest and become exercisable, to the
extent not already vested and exercisable, upon a Change of Control
or a Corporate Reorganization, if the Company shall send
Participant prior written notice of the effectiveness of such event
and the last day on which Participant may exercise the Option.
Participant may, upon compliance with all of the terms of this
Agreement and the Plan, purchase any or all of the Shares with
respect to which the Option is vested and exercisable on or prior
to the last day specified in such notice, and, to the extent the
Option is not exercised, it shall terminate at 5:00 P.M., eastern
standard time, on the last day specified in such notice. The last
day specified in the notice shall not be less than twenty (20) days
after the date of the notice.

3. Termination of Option. The
Option shall remain exercisable as specified in Section 2 above
until the earliest to occur of the dates specified below, upon
which date the Option shall terminate:

(a) the date all of the
Shares are purchased pursuant to the terms of this
Agreement;

(b) in the event of
Participant’s death or disability prior to Termination of
Service of Participant, the Option shall remain exercisable until
one year following the Participant’s death or
disability;

(c) upon the expiration
of ninety (90) days following the Termination of Service of
Participant or thirty (30) days in the event such Termination is
Voluntary or for Cause

(d) at 5:00 P.M.,
eastern standard time, on the last date specified in the notice
described in Section 2 above, in the event of a Change of Control
or Corporate Reorganization, except to the extent that the Option
is assumed by the surviving entity or an affiliate thereof in
connection with such Change in Control or Corporate Reorganization;
or

(e) the fourth year
anniversary of the Grant Date at 5:00 P.M., eastern standard
time.

Upon
its termination, the Option shall have no further force or effect
and Participant shall have no further rights under the Option or to
any Shares which have not been purchased pursuant to prior exercise
of the Option.

 

 

1

 

 

4. Manner
of Exercise of Option.

(a) The Option may be
exercised only by (i) Participant’s completion, execution and
delivery to the Company of a notice of exercise and, if required by
the Company, an “investment letter” as supplied by the
Company confirming Participant’s representations and
warranties in Section 17 of this Agreement, including the
representation that Participant is acquiring the Shares for
investment only and not with a view to the resale or other
distribution thereof, and (ii) the payment to the Company, pursuant
to the terms of this Agreement, of an amount equal to the Purchase
Price multiplied by the number of Shares being purchased as
specified in Participant’s notice of exercise.
Participant’s notice of exercise shall be given in the manner
specified in Section 12 but any exercise of the Option shall be
effective only when the items required by the preceding sentence
are actually received by the Company. The notice of exercise and
the “investment letter” may be in the form set forth in
Exhibit A attached to this Agreement. Payment of the aggregate
Purchase Price for Shares Participant has elected to purchase shall
be made by cash or good check. Notwithstanding anything to the
contrary in this Agreement, the Option may be exercised only if
compliance with all applicable federal and state securities laws
can be effected.

(b) Subject to the
provisions of Section 4 of the Plan, upon any exercise of the
Option by Participant or as soon thereafter as is practicable, the
Company shall issue and deliver to Participant a certificate or
certificates evidencing such number of Shares as Participant has
then elected to purchase. Such certificate or certificates shall be
registered in the name of Participant and shall bear the legend
specified in Section 16 of this Agreement and any legend required
by any federal or state securities laws and by the state in which
the Company is incorporated.

5. Definitions;
Authority of Committee.

(a) A “Change in
Control” shall be deemed to have occurred if, after the class
of stock then subject to this Agreement becomes publicly traded,
(i) the direct or indirect beneficial ownership (within the meaning
of Section 13(d) of the Act and Regulation 13D thereunder) of fifty
percent (50%) or more of the class of securities then subject to
this Agreement is acquired or becomes held by any person or group
of persons (within the meaning of Section 13(d)(3) of the Act), but
excluding the Company and any employee benefit plan sponsored or
maintained by the Company, or (ii) assets or earning power
constituting more than fifty percent (50%) of the assets or earning
power of the Company and its subsidiaries (taken as a whole) is
sold, mortgaged, leased or otherwise transferred, in one or more
transactions not in the ordinary course of the Company’s
business, to any such person or group of persons; provided,
however, that a Change in Control shall not be deemed to have
occurred upon an investment by one or more venture capital funds,
Small Business Investment Companies (as defined in the Small
Business Investment Act of 1958, as amended) or similar financial
investors. For the purposes of this Agreement, the class of stock
then subject to this Agreement shall be deemed to be
“publicly traded” if such stock is listed or admitted
to unlisted trading privileges on a national securities exchange or
as to which sales or bid and offer quotations are reported in the
automated system operated by the National Association of Securities
Dealers, Inc.

(b) A “Corporate
Reorganization” means the happening of any one (1) of the
following events: (i) the dissolution or liquidation of the
Company; (ii) a capital reorganization, merger or consolidation
involving the Company, unless (A) the transaction involves only the
Company and one or more of the Company’s parent corporation
and wholly-owned (excluding interests held by employees, officers
and directors) subsidiaries; or (B) the shareholders who had the
power to elect a majority of the board of directors of the Company
immediately prior to the transaction have the power to elect a
majority of the board of directors of the surviving entity
immediately following the transaction; (iii) the sale of all or
substantially all of the assets of the Company to another
corporation, person or business entity; or (iv) an acquisition of
Company stock, unless the shareholders who had the power to elect a
majority of the board of directors of the Company immediately prior
to the acquisition have the power to elect a majority of the board
of directors of the Company immediately following the transaction;
provided, however, that a Corporate Reorganization shall not be
deemed to have occurred upon an investment by one or more venture
capital funds, Small Business Investment Companies (as defined in
the Small Business Investment Act of 1958, as amended) or similar
financial investors.

(c) “Termination
of Service” shall have the meaning defined in the
Plan.

(d) All determinations
made by the Committee with respect to the interpretation,
construction and application of any provision of this Agreement
shall be final, conclusive and binding on the parties.

6. Default Treatment.

(a) The Option shall be
construed so that it is in compliance with the requirements of
section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”). If for any reason the Option does not meet the
requirements of section 422 of the Code and the regulations
thereunder, then the Option or any portion of the Option, as
necessary, shall be deemed a Nonqualified Stock Option granted
under the Plan.

(b) If the aggregate
Fair Market Value, determined on the date of grant, of the stock to
which this Option and any other incentive stock options are
exercisable for the first time by Participant during any calendar
year under the Plan or any other stock option plan of the Company
exceeds $100,000 (or such other amount as the Code may specify),
the Option shall be deemed a Nonqualified Stock Option granted
under the Plan to the extent of such excess.

7. Rights Prior to Exercise.
Participant will have no rights as a shareholder with respect to
the Shares except to the extent that Participant has exercised the
Option and has been issued and received delivery of a certificate
or certificates evidencing the Shares so purchased.

8. Sale or Other Disposition by Majority
Interest. Participant hereby irrevocably appoints the
Company and its President, or either of them, as
Participant’s agents and attorneys-in-fact, with full power
of substitution for and in Participant’s name, to sell,
exchange, transfer or otherwise dispose of all or a portion of
Participant’s Shares and to do any and all things and to
execute any and all documents and instruments (including, without
limitation, any stock transfer powers) in connection therewith,
such powers of attorney not to become operable until such time as
the holder or holders of a majority of the issued and outstanding
shares of Stock of the Company sell, exchange, transfer or
otherwise dispose of, or contract to sell, exchange, transfer or
otherwise dispose of, all or a majority of the issued and
outstanding shares of Stock of the Company. Any sale, exchange,
transfer or other disposition of all or a portion of
Participant’s Shares pursuant to the foregoing powers of
attorney shall be made upon substantially the same terms and
conditions (including sale price per share) applicable to a sale,
exchange, transfer or other disposition of shares of Stock of the
Company owned by the holder or holders of a majority of the issued
and outstanding shares of Stock of the Company. For purposes of
determining the sale price per share of the Shares under this
Section 8, there shall be excluded the consideration (if any) paid
or payable to the holder or holders of a majority of the issued and
outstanding shares of Common Stock of the Company in connection
with any employment, consulting, noncompetition or similar
agreements which such holder or holders may enter into in
connection with or subsequent to such sale, transfer, exchange or
other disposition. The foregoing power of attorney shall not impose
or be deemed to impose any fiduciary duty or any other duty (except
as set forth in this Section 8) or obligation on either the Company
or its President, shall be irrevocable and coupled with an interest
and shall not terminate by operation of law, whether by the death,
bankruptcy or adjudication of incompetence or insanity of
Participant or the occurrence of any other event.

9. Engagement of Participant.
Nothing in this Agreement shall be construed as constituting a
commitment, guarantee, agreement or understanding of any kind or
nature that the Company shall continue to employ Participant, nor
shall this Agreement affect in any way the right of the Company to
terminate the employment of Participant at any time and for any
reason. By Participant’s execution of this Agreement,
Participant acknowledges and agrees that Participant’s
employment is “at will.” No change of
Participant’s duties as an employee of the Company shall
result in, or be deemed to be, a modification of any of the terms
of this Agreement.

 

 

2

 

 

10. Burden and Benefit; Company.
This Agreement shall be binding upon, and shall inure to the
benefit of, the Company and Participant, and their respective
heirs, personal and legal representatives, successors and assigns.
As used in this Section 10, the term the “Company”
shall also include any corporation which is the parent or a
subsidiary of the Company or any corporation or entity which is an
affiliate of the Company by virtue of common (although not
identical) owner-ship, and for which Participant is providing
services in any form during Participant’s employment with the
Company or any such other corporation or entity. Participant hereby
consents to the enforcement of any and all of the provisions of
this Agreement by or for the benefit of the Company and any such
other corporation or entity.

11. Entire Agreement. This
Agreement and the Plan under which it is issued contain the entire
agreement between the parties with respect to the subject matter
hereof and supersedes all prior agreements or understandings, oral
or written, with respect to the subject matter herein. Participant
accepts the Option in full satisfaction of any and all obligations
of the Company to grant stock options to Participant as of the date
hereof.

12. Notices. Any and all notices
under this Agreement shall be in writing, and sent by hand delivery
or by certified or registered mail (return receipt requested and
first-class postage prepaid), in the case of the Company, to its
principal executive offices to the attention of the President, and,
in the case of Participant, to Participant’s address as shown
on the Company’s records.

13. Governing Law. This Agreement
shall be construed and enforced in accordance with the laws of the
state in which the Company is incorporated, without reference to
its conflicts of laws rules or the principles of the choice of
law.

14. Modifications. No change or
modification of this Agreement shall be valid unless the same is in
writing and signed by the parties hereto.

15. Terms and Conditions of Plan.
The terms and conditions included in the Plan, the receipt of a
copy of which Participant hereby acknowledges by execution of this
Agreement, are incorporated by reference herein, and to the extent
that any conflict may exist between any term or provision of this
Agreement and any term or provision of the Plan, such term or
provision of the Plan shall control.

17. Covenants and Representations and
Covenants of Participant.

Participant
represents, warrants, covenants and agrees with the Company as
follows:

(a) The Option is being
received for Participant’s own account without the
participation of any other person, with the intent of holding the
Option and the Shares issuable pursuant thereto for investment and
without the intent of participating, directly or indirectly, in a
distribution of the Shares and not with a view to, or for resale in
connection with, any distribution of the Shares or any portion
thereof.

(b) Participant is not
acquiring the Option or any Shares based upon any representation,
oral or written, by any person with respect to the future value of,
or income from, the Shares, but rather upon an independent
examination and judgment as to the prospects of the
Company.

(c) Participant has had
the opportunity to ask questions of and receive answers from the
Company and its executive officers and to obtain all information
necessary for Participant to make an informed decision with respect
to the investment in the Company represented by the Option and any
Shares issued upon its exercise.

(d) Participant is able
to bear the economic risk of any investment in the Shares,
including the risk of a complete loss of the investment, and
Participant acknowledges that Participant must continue to bear the
economic risk of any investment in Shares received upon exercise of
the Option for an indefinite period.

(e) Participant
understands and agrees that the Shares subject to the Option may be
issued and sold to Participant without registration under any state
or federal laws relating to the registration of securities and in
that event will be issued and sold in reliance on exemptions from
registration under appropriate state and federal laws.

(f) Shares issued to
Participant upon exercise of the Option will not be offered for
sale, sold or transferred by Participant other than pursuant to:
(i) an effective registration under applicable state securities
laws or in a transaction which is otherwise in compliance with
those laws; (ii) an effective registration under the Securities Act
of 1933, or a transaction otherwise in compliance with such Act;
and (iii) evidence satisfactory to the Company of compliance with
all applicable state and federal securities laws. The Company shall
be entitled to rely upon an opinion of counsel satisfactory to it
with respect to compliance with the foregoing laws.

(g) The Company will be
under no obligation to register the Shares issuable pursuant to the
Option or to comply with any exemption available for sale of the
Shares by Participant without registration, and the Company is
under no obligation to act in any manner so as to make Rule 144
promulgated under the Securities Act of 1933 available with respect
to any sale of the Shares by Participant.

(h) Participant has not
relied upon the Company with respect to any tax consequences
related to the grant or exercise of this Option, or the disposition
of Shares purchased pursuant to its exercise. Participant
acknowledges that, as a result of the grant and/or exercise of the
Option, Participant may incur a substantial tax liability.
Participant assumes full responsibility for all such consequences
and the filing of all tax returns and elections Participant may be
required or find desirable to file in connection therewith. In the
event any valuation of the Option or Shares purchased pursuant to
its exercise must be made under federal or state tax laws and such
valuation affects any return or election of the Company,
Participant agrees that the Company may determine such value and
that Participant will observe any determination so made by the
Company in all returns and elections filed by Participant. In the
event the Company is required by applicable law to collect any
withholding, payroll or similar taxes by reason of the grant or any
exercise of the Option, Participant agrees that the Company may
withhold such taxes from any monetary amounts otherwise payable by
the Company to Participant and that, if such amounts are
insufficient to cover the taxes required to be collected by the
Company, Participant will pay to the Company such additional
amounts as are required.

(i) The agreements,
representations, warranties and covenants made by Participant
herein with respect to the Option shall also extend to and apply to
all of the Shares issued to Participant from time to time pursuant
to exercise of the Option. Acceptance by Participant of any
certificate representing Shares shall constitute a confirmation by
Participant that all such agreements, representations, warranties
and covenants made herein shall be true and correct at that
time.

(j) In the event any
underwriter of securities of the Company requests Participant to
sign any agreement restricting resale of the Shares in connection
with any public offering by the Company, Participant agrees to sign
such agreement, provided the officers of the Company have signed an
agreement no less restrictive. The Company may instruct its
transfer agent not to transfer the Shares if requested by an
underwriter as described above.

(k) Participant hereby
agrees to comply with any plan, policy or other document of the
Company approved by the Board of Directors of the Company to ensure
compliance with securities laws, rules and regulations both during
the term of employment of Participant and for one (1) year
thereafter. The Company may impose stop-transfer restrictions with
respect to Shares acquired upon exercise of the Options to enforce
this provision.

(The
remainder of this page is intentionally left blank.)

 

 

3

 

IN
WITNESS WHEREOF, the parties hereto have caused this Award
Agreement to be executed effective as of the day and year first
above written.

 

MOBILESMITH,
INC.

 

By:_____________________________________

Print
Name:

 

PARTICIPANT:

 

By:_____________________________________

Print
Name:

 

4

 

EXHIBIT
A

 

Attention: Board of
Directors

MobileSmith,
Inc.

5400
Trinity Rd, Suite 208

Raleigh, North
Carolina 27607

 

 

Re:
Exercise of Incentive Stock Option

Dear
Member of the Board:

Pursuant to the
terms and conditions of that certain Incentive Stock Option
Agreement dated as of _______________, 20_____ (the
“Agreement”) between _________________________ and
MobileSmith, Inc. (the “Company”), I desire to purchase
____________ Shares of the Stock of the Company and hereby tender
payment in full for such Shares in accordance with the terms of the
Agreement.

I
hereby reaffirm that the representations and warranties made in
Section 17 of the Agreement are true and correct on the date hereof
as if made on the date hereof.

Very
truly yours,

 

Print
Name:

 

Date:
__________________________

 

 

 

 

5

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