Document:

Investment Agreement

 Exhibit 10.1 
 EXECUTION COPY 
  

 
  

INVESTMENT AGREEMENT 
  

 
  

 TABLE OF CONTENTS 

 

							
	 ARTICLE I PURCHASE AND SALE OF SHARES; USE OF PROCEEDS
	 	 	1	  
	 1.1
	    	 Agreement to Issue, Sell and Purchase the Shares
	 	 	1	  
	 1.2
	    	 Closing and Delivery of the Shares
	 	 	1	  
	 1.3
	    	 Use of Proceeds
	 	 	2	  
		
	 ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	2	  
	 2.1
	    	 Organization and Qualification
	 	 	2	  
	 2.2
	    	 Authorized Capital Stock
	 	 	3	  
	 2.3
	    	 Issuance, Sale and Delivery of the Shares
	 	 	3	  
	 2.4
	    	 Due Execution, Delivery and Performance of the Transaction Documents
	 	 	4	  
	 2.5
	    	 Board Approval
	 	 	5	  
	 2.6
	    	 Valid Offering
	 	 	5	  
	 2.7
	    	 No Defaults
	 	 	5	  
	 2.8
	    	 Properties
	 	 	5	  
	 2.9
	    	 No Material Change
	 	 	6	  
	 2.10
	    	 Material Contracts
	 	 	7	  
	 2.11
	    	 Intellectual Property
	 	 	7	  
	 2.12
	    	 Compliance
	 	 	11	  
	 2.13
	    	 Litigation
	 	 	11	  
	 2.14
	    	 Labor
	 	 	11	  
	 2.15
	    	 Taxes
	 	 	12	  
	 2.16
	    	 Transfer Taxes
	 	 	14	  
	 2.17
	    	 Employee Benefits
	 	 	14	  
	 2.18
	    	 Investment Company
	 	 	15	  
	 2.19
	    	 Insurance
	 	 	16	  
	 2.20
	    	 Real Property
	 	 	16	  
	 2.21
	    	 Customers and Suppliers
	 	 	16	  
	 2.22
	    	 Corrupt Practices
	 	 	16	  
	 2.23
	    	 SEC Filings; Financial Statements
	 	 	16	  
	 2.24
	    	 Internal Accounting Controls
	 	 	18	  
	 2.25
	    	 Corporate Records
	 	 	18	  
	 2.26
	    	 Nasdaq Compliance and Listing
	 	 	18	  
	 2.27
	    	 Exchange Notes
	 	 	19	  
		
	 ARTICLE III REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER
	 	 	19	  
	 3.1
	    	 Investment Representations and Covenants
	 	 	19	  
	 3.2
	    	 Authorization; Validity of Transaction Documents
	 	 	19	  
	 3.3
	    	 No Conflict
	 	 	19	  
	 3.4
	    	 No Legal, Tax or Investment Advice
	 	 	20	  
	 3.5
	    	 Restrictive Legend
	 	 	20	  
	 3.6
	    	 Sufficient Funds
	 	 	20	  

  
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	 ARTICLE IV COVENANTS
	 	 	20	  
	 4.1
	    	 Efforts
	 	 	20	  
	 4.2
	    	 Conduct of the Business
	 	 	21	  
	 4.3
	    	 Proxy Statement; Stockholders Consent
	 	 	24	  
	 4.4
	    	 No Solicitation or Negotiation
	 	 	25	  
	 4.5
	    	 Injunctive Relief
	 	 	26	  
	 4.6
	    	 Conflicts of Interest
	 	 	26	  
	 4.7
	    	 Covenants
	 	 	27	  
	 4.8
	    	 Information Rights
	 	 	27	  
	 4.9
	    	 Public Announcements
	 	 	28	  
	 4.10
	    	 Right of First Refusal for New Shares
	 	 	28	  
	 4.11
	    	 Nasdaq Matters
	 	 	29	  
	 4.12
	    	 Reservation of Common Stock
	 	 	30	  
		
	 ARTICLE V CONDITIONS TO CLOSING
	 	 	30	  
	 5.1
	    	 Conditions to the Company’s Obligations
	 	 	30	  
	 5.2
	    	 Conditions to the Purchaser’s Obligations
	 	 	30	  
		
	 ARTICLE VI TERMINATION
	 	 	32	  
	 6.1
	    	 Termination
	 	 	32	  
	 6.2
	    	 Effect of Termination
	 	 	33	  
		
	 ARTICLE VII INDEMNIFICATION
	 	 	33	  
	 7.1
	    	 Survival
	 	 	33	  
	 7.2
	    	 Limits on Claims
	 	 	33	  
	 7.3
	    	 Indemnification by the Company
	 	 	34	  
	 7.4
	    	 Indemnification by the Purchaser
	 	 	34	  
	 7.5
	    	 Procedure for Indemnification
	 	 	34	  
	 7.6
	    	 Remedies Exclusive
	 	 	35	  
	 7.7
	    	 Right of Set-Off
	 	 	35	  
		
	 ARTICLE VIII MISCELLANEOUS
	 	 	35	  
	 8.1
	    	 Broker’s Fee
	 	 	35	  
	 8.2
	    	 Assignment
	 	 	35	  
	 8.3
	    	 Expenses
	 	 	36	  
	 8.4
	    	 Notices
	 	 	36	  
	 8.5
	    	 Changes
	 	 	37	  
	 8.6
	    	 Headings
	 	 	37	  
	 8.7
	    	 Severability
	 	 	37	  
	 8.8
	    	 Governing Law
	 	 	37	  
	 8.9
	    	 Counterparts
	 	 	37	  
	 8.10
	    	 Entire Agreement
	 	 	37	  
	 8.11
	    	 Press Releases
	 	 	37	  
	 8.12
	    	 No Third-Party Beneficiaries
	 	 	37	  

  

					
	EXHIBIT A	    	 Form of Certificate of Designations
	  	
	EXHIBIT B	    	 Form of Registration Rights Agreement
	  	
	EXHIBIT C	    	 Form of Officer Certifications
	  	

  
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 EXECUTION COPY 
 INVESTMENT AGREEMENT 
 THIS INVESTMENT AGREEMENT is made as of
September 12, 2012, by and among Nexxus Lighting, Inc. (the “Company”), a corporation organized under the laws of the State of Delaware, with its principal offices at 124 Floyd Smith Drive, Suite 300, Charlotte, NC, and RVL 1
LLC, a limited liability company organized under the laws of the State of Delaware, with its principal offices at 177 Broad Street, Stamford, Connecticut 06901 (the “Purchaser”). 

IN CONSIDERATION of the mutual covenants contained in this Agreement, the Company and the Purchaser agree as follows: 

ARTICLE I 

PURCHASE AND SALE OF SHARES; USE OF PROCEEDS 
 1.1 Agreement to Issue, Sell and Purchase the Shares. At the Closing (as defined in Section 1.2) and upon the terms and conditions hereinafter set forth, the Company will sell to the
Purchaser, and the Purchaser will purchase from the Company, for an aggregate purchase price of Six Million Dollars ($6,000,000), 600,000 shares (the “Shares”) of a newly created series of the Company’s Preferred Stock, par
value $0.001 per share, designated “Series B Convertible Preferred Stock”, par value $0.001 per share (the “Preferred Stock”), which Preferred Stock shall have the rights, preferences and privileges set forth in the
Certificate of Designations with respect to the Preferred Stock, in the form of Exhibit A annexed hereto and made a part hereof (the “Certificate of Designations”). Each share of Preferred Stock shall have a stated value of
$10.00 and shall be convertible, subject to the conditions set forth in the Certificate of Designations, into shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), at a price of $0.13 per share
(the “Conversion Price”), for an aggregate of 46,153,846 shares of Common Stock (the “Common Shares”), subject to certain restrictions on conversion set forth in the Certificate of Designations. 

1.2 Closing and Delivery of the Shares. 
 (a) Closing. The purchase and sale of the Shares (the “Closing”) shall occur at the offices of Lowenstein Sandler PC, 1251 Avenue of the Americas, New York, NY 10020 at 2:00 p.m.
on the third Business Day after the date on which all of the conditions contained in Article V have been satisfied or waived (other than such conditions which shall be satisfied on the Closing Date), or at such other place, time, or date as
may be mutually agreed to in writing by Purchaser and the Company. The day on which the Closing occurs is sometimes referred to herein as the “Closing Date”. For purposes of this Agreement, the term “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which the banks in New York, New York are authorized by Law or executive order to be closed. 
 (b) Proceedings at Closing. All actions to be taken and all documents to be executed and delivered by the Company in connection with the consummation of the transactions contemplated at the Closing
shall be reasonably satisfactory in form and substance to Purchaser and its counsel, and all actions to be taken and all documents to be executed and delivered by Purchaser in connection with the consummation of the transactions contemplated at the
Closing shall be reasonably satisfactory in form and substance to the Company and its counsel. All actions to be taken and all documents to be executed and delivered by all parties hereto at the Closing shall be deemed to have been taken and
executed and delivered simultaneously, and no action shall be deemed taken nor any document executed or delivered until all have been taken, executed, and delivered. 

 (c) Delivery of the Shares. At the Closing, the Company shall deliver to the
Purchaser one or more stock certificates registered in the name of the Purchaser, representing the Shares set forth in Section 1.1 above and bearing the legend specified in Section 3.5 hereof referring to the fact that the
Shares were sold in reliance upon the exemption from registration under Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”) against delivery of the purchase price therefore by wire transfer of
immediately available funds to an account designated by the Company. 
 1.3 Use of Proceeds. Proceeds from the sale of
the Shares shall be used by the Company: (i) to extinguish existing short term debt, the total amount of which as of the date hereof, together with all accrued and unpaid interest, is equal to Two Million Five Hundred Thirty Two Thousand Seven
Hundred Fifty Six Dollars ($2,532,756), (ii) to fund the settlement payment in connection with the settlement agreement described in Section 5.2(m) below, and (iii) for working capital purposes. Proceeds from the sale of the
Shares will not be used to invest in or acquire another LED lighting manufacturer except with the approval of the Company’s stockholders other than the Purchaser. The parties agree that the proceeds from any subsequent investment by the
Purchaser in the Company (a “Subsequent Investment”) shall be used as agreed by the parties at such time. Any such Subsequent Investment shall be consummated in accordance with applicable Nasdaq rules. The Company hereby
acknowledges that, to the extent that applicable Nasdaq rules require the Company’s stockholders to approve such Subsequent Investment, the Purchaser shall be entitled to vote on such Subsequent Investment along with the Company’s other
stockholders. 
 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 The Company hereby
represents and warrants to, and covenants with, the Purchaser as follows: 
 2.1 Organization and Qualification. The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and the Company is qualified to do business as a foreign corporation in each jurisdiction in which such qualification is required,
except where failure to be so qualified would not reasonably be expected to result in a material adverse effect. The only subsidiary of the Company is Lumificient Corporation, a Minnesota corporation (the “Subsidiary”). The
Subsidiary is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation and is qualified to do business as a foreign entity in each jurisdiction in which such qualification is required, except where
failure to be so qualified would not reasonably be expected to result in a material adverse effect. 

  
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 2.2 Authorized Capital Stock. As of the date hereof, the Company’s authorized
capital stock consists of (i) 40,000,000 shares of Common Stock, of which 16,452,738 shares are issued and outstanding, and (ii) 5,000,000 shares of preferred stock, par value $0.001 per share, none of which are issued and outstanding. The
Company has not issued any shares since March 31, 2012 other than pursuant to employee or director equity incentive plans or purchase plans approved by the Board and upon the exercise of options and warrants outstanding on such date. The issued
and outstanding shares of the Company’s Common Stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws and were not issued in violation of
or subject to any preemptive rights or other rights to subscribe for or purchase securities. Except as set forth in Schedule 2.2 or as contemplated by this Agreement, the Company does not have outstanding any options to purchase, or any
preemptive rights or other rights to subscribe for or to purchase, any securities or obligations convertible into, or any agreements or commitments to issue or sell, shares of capital stock or other securities of the Company and there are no
agreements or commitments obligating the Company to repurchase, redeem, or otherwise acquire capital stock or other securities of the Company. Except as set forth in Schedule 2.2 or as contemplated by this Agreement, there are no agreements
to which the Company is a party or by which it is bound with respect to the voting (including without limitation voting trusts or proxies), registration under the Securities Act, or sale or transfer (including without limitation agreements relating
to pre-emptive rights, rights of first refusal, rights of first offer, buy-sell rights, co-sale rights or “drag-along” rights) of any securities of the Company. With respect to the Subsidiary, (i) the Company owns 100% of the
Subsidiary’s capital stock, (ii) all the issued and outstanding shares of the Subsidiary’s capital stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance with applicable
federal and state securities laws, and were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, (iii) there are no outstanding options to purchase, or any preemptive rights or
other rights to subscribe for or to purchase, any securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of the Subsidiary’s capital stock, and (iv) there are no agreements or commitments
obligating the Subsidiary of the Company to repurchase, redeem, or otherwise acquire capital stock or other securities of the Company or the Subsidiary. The Company does not directly or indirectly own, or have a right to acquire, any equity or
similar interest in, or any interest convertible or exchangeable or exercisable for, any equity or similar interest in, any Person, other than the Subsidiary. For purposes of this Agreement, the term “Person” shall mean any
individual, partnership, company, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or agency or political subdivision thereof, or other entity. 

2.3 Issuance, Sale and Delivery of the Shares. When issued, delivered and paid for in accordance with the terms hereof, the Shares
will be duly authorized, validly issued, fully paid and nonassessable, shall have the rights, preferences and limitations set forth in the Certificate of Designations and shall be free and clear of all liens, claims, encumbrances and restrictions,
except as imposed by applicable securities laws. Upon the conversion of the Preferred Stock pursuant to the terms of the Certificate of Designations, the Common Shares will be validly issued, fully paid and nonassessable, and shall be free and clear
of all liens, claims, encumbrances and restrictions except as imposed by applicable securities laws. No further approval or authorization of the board of directors of the Company (the “Board of Directors” or the
“Board”) will be required for the issuance and sale of the Shares to be sold by the Company pursuant to the terms hereof or for the issuance of the Common Shares upon the conversion of the Preferred Stock pursuant to the terms of
the Certificate of Designations. 

  
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 2.4 Due Execution, Delivery and Performance of the Transaction Documents. The Company
has full legal right, corporate power and authority to authorize, execute and deliver this Agreement, the Certificate of Designations and the Registration Rights Agreement attached hereto as Exhibit B (all such agreements and documents are
collectively referred to herein as the “Transaction Documents”), perform its obligations hereunder and thereunder and consummate the transactions contemplated hereby and thereby. The execution and delivery of the Transaction
Documents, the performance of the Company’s obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby have been duly authorized by the Company. Except as set forth in Schedule 2.4, the
execution and performance of the Transaction Documents by the Company and the consummation of the transactions therein contemplated will not (i) violate any provision of the organizational documents of the Company, (ii) result in the
creation of any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, restriction, adverse claim, interference or right of third party of any nature upon any material assets of the Company pursuant to the terms or provisions
of, or will not conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under, any material agreement, commitment, undertaking, mortgage, deed of trust, lease,
franchise, license, indenture, permit or other instrument of any nature to which the Company or the Subsidiary is a party or by which the Company or its properties, or the Subsidiary or the Subsidiary’s properties, may be bound or affected, or
(iii) violate any statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory body, administrative agency or other governmental or quasi-governmental body applicable to the Company or the Subsidiary
or any of their respective properties; provided it is understood that the Company must obtain stockholder approval of an amendment to its certificate of incorporation to authorize the issuance of additional shares of Common Stock in order to
permit full conversion of the Preferred Stock as contemplated by the Certificate of Designations. No consent, approval, authorization, order, filing with, or action by or in respect of any court, regulatory body, administrative agency or other
governmental or quasi-governmental body is required for the execution and delivery of the Transaction Documents or the consummation of the transactions contemplated thereby, other than such as have been made or obtained and except for compliance
with the Blue Sky laws, federal securities laws and NASDAQ rules applicable to the listing of the Shares. Upon their execution and delivery, and assuming the valid execution thereof by the Purchaser, the Transaction Documents will constitute the
valid and binding obligations of the Company, enforceable in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

The Company has taken all action necessary to exempt (i) the issuance and sale of the Shares, (ii) the issuance of the Common Shares upon
conversion of the Preferred Stock, (iii) the other transactions contemplated by the Transaction Documents, and (iv) the Purchaser and its affiliates and associates (as such terms are defined in Section 203 of the General Corporation
Law of the State of Delaware) and any subsequent business combination (as such term is defined in Section 203 of the Delaware General Corporation Law) between the Company and the Purchaser and/or any such affiliate or associate of the Purchaser
from the provisions of any anti-takeover, business combination or control share law or statute (including Section 203 of the General Corporation Law of the State of Delaware) binding on the Company or to which the Company or any of its assets
and properties may be subject or any provision of the Company’s certificate of incorporation, bylaws or any stockholder rights agreement that is or could become applicable to the Purchaser or any such affiliate or associate of the Purchaser as
a result of the transactions contemplated hereby. The Company has delivered to Purchaser an officer’s certificate certifying to copies of the resolutions duly adopted by the Board of Directors (pursuant to and in accordance with the
Company’s certification of incorporation and bylaws) with respect to the matters described in the foregoing sentence and that such resolutions have not been amended, superseded and/or rescinded and otherwise remain in full force and effect.

  
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 2.5 Board Approval. The Board of Directors has, as of the date of this Agreement, at
a meeting duly called and held, duly adopted resolutions to approve the Transaction Documents and the consummation of the transactions contemplated thereby (including the issuance of the Shares). 

2.6 Valid Offering. Assuming the accuracy of the representations and warranties of Purchaser set forth in Article III, the
offer, sale, and issuance of the Shares and the issuance of the Common Shares will be exempt from the registration requirements of the Securities Act and will have been registered or qualified (or are exempt from registration and qualification)
under the registration or qualification requirements of all applicable state securities Laws. Neither the Company nor any Person acting on its behalf will knowingly take any action that would cause the loss of any such exemption. 

2.7 No Defaults. The Company is not in violation or default of any provision of its certificate of incorporation or bylaws, or
other organizational documents, or, except as to defaults, violations and breaches which, individually or in the aggregate, would not reasonably be expected to be material to the condition (financial or otherwise), properties, assets (including
intangible assets), business, operations or results of operations of the Company and the Subsidiary, taken as a whole, in breach of or default with respect to any provision of any material agreement, commitment, undertaking, judgment, decree, order,
mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument of any nature to which it is a party or by which it or any of its properties are bound; and, to the knowledge of the Company, except as set forth in
Schedule 2.7, there does not exist any state of fact which, with notice or lapse of time or both, would constitute a breach or default on the part of the Company, except such breaches or defaults which individually or in the aggregate would
not reasonably be expected to be material to the condition (financial or otherwise), properties, assets (including intangible assets), business, operations or results of operations of the Company and the Subsidiary, taken as a whole. 

2.8 Properties. Each of the Company and the Subsidiary has good and marketable title to all the properties and assets reflected as
owned by it in the consolidated financial statements included in the Company’s most recently filed Form 10-Q other than those which have been disposed of since the date of such financial statements, free and clear of all liens, mortgages,
pledges, charges or encumbrances of any kind except (i) those, if any, reflected in such consolidated financial statements (including the notes thereto), (ii) those which are not material in amount and do not adversely affect the use made
and proposed to be made of such property or asset by the Company or the Subsidiary or (iii) as set forth on Schedule 2.8. All leased properties of the Company and the Subsidiary are held under valid and binding leases, with such
exceptions as are not materially significant in relation to the business of the Company and the Subsidiary. The Company or the Subsidiary owns or leases all such properties as are necessary in all material respects to the Company’s operations
as now conducted. 

  
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 2.9 No Material Change. Since March 31, 2012, (i) except for the matters
set forth on Schedule 2.9, neither the Company nor the Subsidiary has incurred any material liabilities or obligations which would be required under generally accepted accounting principles in the United States (“GAAP”) to be
set forth on the Company’s balance sheet; (ii) neither the Company nor the Subsidiary has sustained any material loss or interference with its respective businesses or properties from fire, flood, windstorm, accident or other calamity
whether or not covered by insurance; (iii) the Company has not paid, authorized or declared any dividends or other distributions with respect to its capital stock, or redeemed or repurchased any securities of the Company; (iv) neither the
Company nor the Subsidiary is in default in the payment of principal or interest on any outstanding debt obligations; (v) there has not been any change in the capital stock of the Company other than the sale of the Shares hereunder and the
issuance of shares or options pursuant to employee or director equity incentive plans or purchase plans approved by the Board of Directors or upon the exercise of options and warrants outstanding on such date, (vi) neither the Company nor the
Subsidiary has entered into any employment contract or collective bargaining agreement, written or oral, or modified the terms of any such existing contract or agreement, (vii) neither the Company nor the Subsidiary has granted any increase in
the base compensation of any of its directors, officers and employees outside the ordinary course of business, (viii) neither the Company nor the Subsidiary has entered into, adopted, amended, modified or terminated any bonus, profit sharing,
incentive, severance, or other plan, contract, or commitment for the benefit of any of its directors, officers and/or employees (or taken any such action with respect to any other Company Plan), outside the ordinary course of business,
(ix) there has not been any waiver, not in the ordinary course of business, by the Company or the Subsidiary of a material right or of a material debt owed to it; (x) there has not been any satisfaction or discharge of any lien, claim or
encumbrance or payment of any obligation by the Company or the Subsidiary, except in the ordinary course of business and which is not material to the assets (including intangible assets), properties, condition (financial or otherwise), operations or
results of operations or business of the Company and the Subsidiary taken as a whole; (xi) except for amending the Company’s certificate of incorporation to increase the number of authorized shares of Common Stock to 40,000,000, there has
not been any change or amendment to the Company’s certificate of incorporation or bylaws, or material change to any material contract or arrangement by which the Company or any Subsidiary is bound or to which any of their respective assets or
properties is subject; (xii) there has not been any transaction entered into by the Company or the Subsidiary other than in the ordinary course of business; (xiii) except for the matters set forth on Schedule 2.9, there has not
been the loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company or the Subsidiary; (xiv) except for the matters set forth on Schedule 2.9, there has not been the
loss or threatened loss of any material customer; and (xv) except for the matters set forth on Schedule 2.9, there have been no events or occurrences which, individually or in the aggregate, have had or would reasonably be expected to
have a Material Adverse Effect. For purposes of this Agreement, the term “Material Adverse Effect” shall mean: (a) a material adverse effect on the condition (financial or otherwise), properties, assets (including intangible
assets), business, operations or results of operations of the Company and the Subsidiary, taken as a whole, or (b) a material adverse effect on the ability of the Company to perform its obligations under this Agreement. 

  
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 2.10 Material Contracts. Schedule 2.10 sets forth the following types of
written contracts, agreements, indentures, notes, bonds, loans, instruments, leases, commitments, or other arrangements or commitments (collectively, “Contracts”) to which the Company or the Subsidiary is a party to or by which the
Company or the Subsidiary or any of their respective properties or assets are bound (collectively, the “Material Contracts”), it being understood that Contracts filed as exhibits to the Company SEC Reports need not be listed on
Schedule 2.10, except to the extent such Contract is not complete and correct including all amendments thereto as filed with the Company SEC Reports (except that the Company SEC Reports do not include all schedules and exhibits to such
Material Contracts): (i) Contracts with any current or former officer or director of the Company or the Subsidiary; (ii) Contracts with any labor union or association representing any employee of the Company or the Subsidiary;
(iii) Contracts for the exclusive license or sale of any material assets of the Company or the Subsidiary or for the grant to any Person of any preferential rights to purchase or license any of their assets; (iv) joint venture Contracts;
(v) Contracts containing covenants of the Company or the Subsidiary not to compete in any line of business or with any Person in any geographical area; (vi) Contracts relating to the acquisition by the Company or the Subsidiary of any
operating business or the capital stock of any other Person; (vii) Contracts relating to material indebtedness of the Company or the Subsidiary; (viii) Contracts granting any registration or similar rights in respect of securities of the
Company or the Subsidiary; (ix) Contracts that represented more than $50,000 of revenue for the fiscal year ended December 31, 2011; or (x) any other Contracts that involve the expenditure of more than $50,000 in the aggregate or
$50,000 annually. There have been made available to Purchaser true and complete copies of all of the Material Contracts. All of the Material Contracts are in full force and effect and are the legal, valid, and binding obligations of the Company
and/or the Subsidiary, enforceable against it in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, and similar laws affecting creditors’ rights and remedies generally and subject, as to
enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). To the Company’s knowledge, after due inquiry of each officer or other employee responsible for any Material
Contract, neither the Company nor the Subsidiary is in default in any material respect under any Material Contract, nor is any other party to any such Material Contract in default thereunder in any material respect. Neither the Company nor the
Subsidiary has received any written notice of termination under any Material Contract. 
 2.11 Intellectual Property.

 (a) Schedule 2.11(a) sets forth an accurate and complete list of all Patents and Patent applications, registered
marks, and registrations and applications for registrations of Marks, Copyrights and Domain Names owned or filed by the Company or the Subsidiary (collectively, “Registered Company Intellectual Property”). Schedule 2.11(a)
lists the jurisdictions in which each such Registered Company Intellectual Property has been issued or registered or in which any application for such issuance and registration has been filed or in which any other filing or recordation has been
made. Each item of Registered Company Intellectual Property is valid and subsisting, all necessary registration, maintenance and renewal fees currently due in connection with such Registered Company Intellectual Property have been paid and all
necessary documents and certificates in connection with such Registered Company Intellectual Property have been filed with the relevant patent, copyright, trademark or other authorities in the United States or foreign jurisdictions, as the case may
be, for the purposes of maintaining such Registered Company Intellectual Property. Neither the Company nor the Subsidiary has misrepresented, or failed to disclose, any facts or circumstances in any application for any Registered Company
Intellectual Property that would constitute fraud with respect to such application. 

  
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 (b) The Company and/or the Subsidiary has full title to and ownership of, or has valid and
continuing rights to use, sell or license, all of Company Intellectual Property and Company Technology, free and clear of any liens, mortgages, pledges, charges or encumbrances of any kind except (i) those, if any, reflected in the Company
Financials (including the notes thereto), or (ii) those which are not material in amount and do not adversely affect the use made and proposed to be made of such property or asset by the Company. The Company Intellectual Property and Company
Technology are sufficient for the operation and conduct of the businesses of the Company and the Subsidiary as presently conducted and as proposed to be conducted. Except as set forth on Schedule 2.11(b), no third Person has any rights to any
Company Intellectual Property or Company Technology that is owned by the Company and/or the Subsidiary, other than non-exclusive license rights granted in the normal course of business to users of the Products. 

(c) After giving effect to the agreement contemplated by Section 5.2(m), except as set forth in Schedule 2.11(c), no
Company Intellectual Property, Company Technology, or Product is infringing, misappropriating or violating, and has not infringed, misappropriated or violated, the Intellectual Property Rights of any third Person, nor will the use, practice or other
commercial exploitation of the Company Intellectual Property, the Company Technology, or the Products by the Company or the Subsidiary, or the manufacturing, licensing, marketing, importation, offer for sale, sale or use of the same, or the
operation of the Company’s and the Subsidiary’s businesses, infringe, constitute an unauthorized use of or misappropriate any Intellectual Property Rights of any third Person. Except as noted in Section 5.2(m) or set forth in
Schedule 2.11(c), neither the Company nor the Subsidiary is a party to or the subject of any pending or, to the knowledge of the Company, threatened suit, action, investigation or proceeding which involves a claim against the Company or the
Subsidiary, of infringement, unauthorized use, or violation of any Intellectual Property Rights of any Person, or challenging the ownership, use, validity or enforceability of any Company Intellectual Property or (ii) contesting the right of
the Company or the Subsidiary to use, sell, exercise, license, transfer or dispose of any Company Intellectual Property or Company Technology, or any products, processes or materials covered thereby in any manner, nor has the Company or the
Subsidiary received any written communications alleging such claims. 
 (d) To the knowledge of the Company, no Person
(including employees and former employees of the Company or the Subsidiary) is infringing, violating, misappropriating or otherwise misusing any Company Intellectual Property or Company Technology, and, except as set forth in Schedule
2.11(d), neither the Company nor the Subsidiary has made any such claims against any Person (including employees and former employees of the Company or the Subsidiary). 

  
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 (e) Except as set forth on Schedule 2.11(e), the Company and the Subsidiary have
secured from all consultants, advisors, employees and independent contractors who independently or jointly contributed to or participated in, in the normal course of his or her duties, the conception, reduction to practice, creation or development
of any Intellectual Property Rights for the Company or the Subsidiary (each an “Author”), unencumbered and unrestricted exclusive ownership of all of the Authors’ Intellectual Property Rights in such contribution that the
Company or the Subsidiary does not already own by operation of law and has obtained the waiver of all non-assignable rights. Except as set forth on Schedule 2.11(b), no Author has retained any rights, licenses, claims or interest whatsoever
with respect to any Intellectual Property Rights developed by the Author for the Company or the Subsidiary. Without limiting the foregoing, except as set forth on Schedule 2.11(e), the Company and the Subsidiary have obtained written and
enforceable proprietary information and invention disclosure and Intellectual Property Rights assignments from all current and former Authors. The Company and the Subsidiary have provided Purchaser with copies of all such forms currently and
historically used by the Company and the Subsidiary. 
 (f) No Trade Secret or any other non-public, proprietary information of
the Company or the Subsidiary has been authorized to be disclosed or has been actually disclosed by the Company or the Subsidiary to any employee or any third Person other than (i) pursuant to a written confidentiality or non-disclosure
agreement restricting the disclosure and use of Company Intellectual Property or Company Technology, or (ii) to such employees or third persons who otherwise have a duty of confidentiality to the Company or the Subsidiary. The Company and the
Subsidiary have taken all commercially reasonable steps to protect and preserve the confidentiality of all Trade Secrets and any other confidential information of the Company or the Subsidiary. 

(g) The Company and the Subsidiary have complied in all material respects with all applicable laws, and their respective internal privacy
policies, relating to the use, collection, storage, disclosure and transfer of any personally identifiable information collected by the Company or the Subsidiary, or by third parties on behalf of the Company or the Subsidiary (collectively,
“Personal Data”). Neither the Company nor the Subsidiary has received a written complaint regarding the Company’s or the Subsidiary’s collection, use or disclosure of Personal Data. The Company and the Subsidiary take
commercially reasonable measures to ensure that Personal Data is protected against unauthorized access, use, modification, or other misuse. To the knowledge of the Company, no breach or violation of any security policy of the Company or the
Subsidiary with respect to Personal Data has occurred or is threatened, and there has been no unauthorized or illegal use of or access to any Personal Data. 
 (h) For purposes of this Agreement: 
  

	 	(i)	“Company Intellectual Property” means all Intellectual Property Rights owned by or licensed to the Company or the Subsidiary. 

 

	 	(ii)	“Company Technology” means all Technology owned by or licensed to the Company or the Subsidiary. 

  
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	 	(iii)	“Intellectual Property Rights” shall mean all of the rights arising from or in respect of the following, whether protected, created or arising under
the Laws of the United States or any foreign jurisdiction: (A) patents, patent applications, any reissues, reexaminations, divisionals, continuations, continuations-in-part and extensions thereof (collectively, “Patents”);
(B) trademarks, service marks, trade names (whether registered or unregistered), service names, industrial designs, brand names, brand marks, trade dress rights, Internet domain names, identifying symbols, logos, emblems, signs or insignia, and
including all goodwill associated with the foregoing (collectively, “Marks”), (C) copyrights, whether registered or unregistered (including copyrights in computer software programs), mask work rights and registrations and
applications therefor (collectively, “Copyrights”); (D) confidential and proprietary information, or non-public processes, designs, specifications, technology, know-how, techniques, formulas, inventions, concepts, trade
secrets, discoveries, ideas and technical data and information, in each case excluding any rights in respect of any of the foregoing that comprise or are protected by Copyrights or Patents (collectively, “Trade Secrets”);
(E) all uniform resource locators, e-mail and other internet addresses and domain names and applications and registrations therefor (“Domain Names”); and (F) all applications, registrations and permits related to any of
the foregoing clauses (A) through (E). 

  

	 	(iv)	“Products” means all products or services produced, marketed, licensed, sold, distributed or performed by or on behalf of the Company or the Subsidiary
and all products or services currently under development by the Company or the Subsidiary. 

  

	 	(v)	“Software” means computer programs, including any and all software implementations of algorithms, models and methodologies whether in source code,
object code or other form, databases and compilations, including any and all data and collections of data, descriptions, flow-charts and other work product used to design, plan, organize and develop any of the foregoing and all documentation,
including user manuals and training materials related to any of the foregoing. 

  

	 	(vi)	“Technology” means, collectively, all designs, formulas, algorithms, procedures, techniques, ideas, know-how, Software (whether in source code, object
code or human readable form), databases and data collections, Internet websites and web content, tools, inventions (whether patentable or unpatentable and whether or not reduced to practice), invention disclosures, developments, creations,
improvements, works of authorship, other similar materials and all recordings, graphs, drawings, reports, analyses, other writings and any other embodiment of the above, in any form or media, whether or not specifically listed herein, and all
related technology, documentation and other materials used in, incorporated in, embodied in or displayed by any of the foregoing, or used or useful in the design, development, reproduction, maintenance or modification of any of the foregoing.

  
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 2.12 Compliance. Except as set forth in Schedule 2.12, each of the Company and
the Subsidiary has complied in all material respects with each Law and is not in violation of any such Law. There have been no written notices or orders of material noncompliance issued to the Company or the Subsidiary under or in respect of any
such Law and, to the knowledge of the Company, none of the Company or the Subsidiary is or has been charged or under investigation with respect to any material noncompliance. Except as set forth in Schedule 2.12, to the knowledge of the
Company, there are no existing circumstances that are reasonably likely to result in any such violation. “Law” means any judgment, ruling, order, edict, decree, statute, law (including common law), ordinance, rule, permit, code or
regulation applicable to the Company or the Subsidiary or their respective businesses, properties or assets. 
 2.13
Litigation. Except as set forth in Schedule 2.13, there is no action, suit, proceeding, claim, arbitration, mediation or investigation pending, or, to the Company’s knowledge, threatened, before any regulatory body, agency, court,
tribunal or governmental or quasi-governmental entity, foreign or domestic (“Governmental Entity”), against or affecting the Company or the Subsidiary. Except as set forth in Schedule 2.13, neither the Company nor the
Subsidiary has received any notice or assertion of such an action, suit, proceeding, claim, arbitration, mediation or investigation. To the knowledge of the Company, there is no reasonable basis for any such action, suit, proceeding, claim,
arbitration, mediation or investigation except for the matters set forth on Schedule 2.9, or for any Person to assert a claim against the Company or the Subsidiary based upon the Company entering into any of the Transaction Documents,
performing its obligations thereunder or consummating the transactions contemplated thereby. There is no judgment, decree, writ, award, temporary or permanent injunction, stipulation, determination or order against the Company or the Subsidiary or
any of their respective officers (in their capacities as such), or any of their respective properties or assets, or, to the knowledge of the Company, any of the Company’s employees (in their capacities as such). There are no settlements or
similar agreements with any Governmental Entity affecting the Company or the Subsidiary or any of their respective properties or assets. None of the Company or the Subsidiary has any actions, suits, proceedings, claims, arbitrations, mediations or
investigations pending before any regulatory body, agency, court, tribunal or governmental or quasi-governmental body against any other Person, nor is the Company or the Subsidiary a party to, or subject to the provisions of, any judgment, decree,
writ, award, temporary or permanent injunction, stipulation, determination or order of any Governmental Entity. 
 2.14
Labor. Neither the Company nor the Subsidiary is a party to any labor or collective bargaining agreement, and no employees of the Company or the Subsidiary are represented by any labor organization. Within the preceding three years, there
have been no representation or certification proceedings, or petitions seeking a representation proceeding, pending or, to the Company’s knowledge, threatened to be brought or filed with the National Labor Relations Board or any other labor
relations tribunal or authority with respect to the Company or the Subsidiary. Within the preceding three years, to the Company’s knowledge, there have been no organizing activities involving the Company or the Subsidiary in respect of any
group of employees of the Company or the Subsidiary. There are no strikes, work stoppages, slowdowns, lockouts, material arbitrations, or material grievances or other material labor disputes pending or, to the Company’s knowledge, threatened
against or involving the Company or the Subsidiary. 

  
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 2.15 Taxes. (a) The Company has timely filed all Tax Returns required to be
filed by or on behalf of the Company or the Subsidiary (taking in consideration appropriate extensions for filing) and has fully paid or adequately accrued all Taxes payable by the Company and the Subsidiary. All such Tax Returns are correct and
complete in all material respects. Except as set forth in Schedule 2.15(a), to the knowledge of the Company no Tax deficiency has been or might be asserted or threatened against the Company or the Subsidiary. 

(b) No audit or other administrative or court proceedings are pending with any governmental authority with respect to Taxes of the
Company or the Subsidiary, and no written notice thereof has been received. Except as set forth in Schedule 2.15(a), to the knowledge of the Company, no claim has been made by a taxing authority in a jurisdiction where the Company or the
Subsidiary does not file Tax Returns such that it is or may be subject to taxation by that jurisdiction. 
 (c) The Company and
the Subsidiary have disclosed on their Tax Returns all positions taken therein that could give rise to substantial understatement of federal income tax within the meaning of Section 6662 of the Internal Revenue Code of 1986, as amended (the
“Code”). 
 (d) The Company and the Subsidiary have never participated in any reportable or listed transaction
as defined under Section 6011 of the Code. 
 (e) There are no liens for Taxes (other than Taxes not yet due and payable)
upon any of the assets of the Company or the Subsidiary. 
 (f) Except as set forth on Schedule 2.15(f), as of the date
of this Agreement, neither the Company nor the Subsidiary has received (i) a request for information related to Tax matters, or (ii) a notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted or assessed by any
taxing authority against the Company or the Subsidiary. 
 (g) Each of the Company and the Subsidiary has withheld and paid all
Taxes required to have been withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, stockholder or other person; and (ii) the Company and the Subsidiary have complied in all material
respects with all applicable requirements of any taxing authority to collect from the receipts of customers (or other persons paying amounts to the Company or the Subsidiary, as the case may be) the amount of all Taxes required to be collected and
with all applicable requirements of any taxing authority to pay and remit such Taxes when due, in the form required under applicable Law or to make adequate provision for the payment of such amounts to the proper taxing authorities. 

  
 -12-

 (h) The Company has delivered to Purchaser correct and complete copies of all Tax Returns
filed by the Company or the Subsidiary, and all examination reports and statements of deficiency assessed against or agreed to by the Company or the Subsidiary, since January 1, 2009. 

(i) Neither the Company nor the Subsidiary has waived any statute of limitations in respect of Taxes or agreed to any extension of time
with respect to a Tax assessment or deficiency. 
 (j) Except as set forth on Schedule 2.15(j), neither the Company nor
the Subsidiary currently is the beneficiary of any extension of time within which to file any Tax Return. 
 (k) The unpaid
Taxes of the Company and the Subsidiary (x) did not, as of the date of the Company Financials, exceed the accruals and reserves for Tax liabilities (rather than any reserve for deferred Taxes established to reflect timing differences between
book and Tax income) set forth on the face of the Company Financials (rather than in any notes thereto), and (y) will not exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and
practice of the Company and the Subsidiary in filing their Tax Returns; 
 (l) Neither the Company nor the Subsidiary will be
required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any (i) change in method of accounting for a taxable
period ending on or prior to the Closing Date; (ii) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or non-U.S. Tax law) executed on or prior to the Closing
Date; (iii) intercompany transaction or any excess loss account described in Treasury Regulations under Section 1502 of the Code (or any corresponding or similar provision of state, local or non-U.S. Tax law); (iv) installment sale or
open transaction disposition made on or prior to the Closing Date; (v) prepaid amount received on or prior to the Closing Date; (vi) election under Section 108(i) of the Code; or (vii) income that accrued in a prior taxable
period but that was not included in taxable income for that or another prior taxable period. 
 (m) For purposes of this
Agreement: (x) “Taxes” shall mean (A) all federal, state, local or foreign taxes, charges, fees, imposts, levies or other assessments, including all net income, gross receipts, capital, sales, use, ad valorem, value added,
transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security, unemployment, excise, severance, stamp, occupation, property and estimated taxes, customs duties, fees, assessments and charges of
any kind whatsoever, (B) all interest, penalties, fines, additions to tax or additional amounts imposed by any Governmental Entity in connection with any item described in clause (A), and (C) any transferee liability in respect of any
items described in clauses (A) and/or (B) payable by reason of Contract, assumption, transferee liability, operation of law, Treasury Regulation Section 1.1502-6(a) (or any predecessor or successor thereof of any analogous or similar
provision under law) or otherwise, and (y) “Tax Returns” shall mean any return, report, claim for refund, estimate, information return or statement or other similar document relating to or required to be filed with any
Governmental Entity with respect to Taxes, including any Schedule or attachment thereto, and including any amendment thereof. 

  
 -13-

 2.16 Transfer Taxes. On the Closing Date, all stock transfer or other Taxes (other
than income Taxes) which are required to be paid in connection with the sale and issuance of the Shares to be sold to the Purchaser hereunder will be, or will have been, fully paid or provided for by the Company, all Laws imposing such Taxes will be
or will have been fully complied with, and all Tax Returns with respect to such Taxes will be timely filed. 
 2.17 Employee
Benefits. 
 (a) The Company Plans (as defined below) have been maintained and operated, in all material respects, in
accordance with their terms and with all applicable provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Internal Revenue Code of 1986, as amended (the “Code”) and any other
applicable Laws. The “Company Plans” means (i) all “employee benefit plans” (as defined in Section 3(3) of ERISA), (ii) all other employee benefit plans, policies, agreements or arrangements, and
(iii) all payroll practices, including employment, consulting or other compensation agreements, or bonus or other incentive compensation, stock purchase, equity or equity-based compensation, deferred compensation, change in control, severance,
sick leave, vacation, loans, salary continuation, health insurance, life insurance and educational assistance plan, policies, agreements or arrangements with respect to which the Company or the Subsidiary has any obligation or liability, contingent
or otherwise, for current or former employees, consultants or directors of the Company or the Subsidiary. 
 (b) Neither the
Company, the Subsidiary nor any “party in interest” or “disqualified person” with respect to the Company Plans has engaged in a non-exempt “prohibited transaction” within the meaning of Section 4975 of the Code or
Section 406 of ERISA for which the Company or the Subsidiary could incur a material liability. No fiduciary has any liability for breach of fiduciary duty or any other failure to act or comply in connection with the administration or investment
of the assets of any Company Plan for which the Company or the Subsidiary could incur a material liability. 
 (c) The Company
Plans intended to qualify under Section 401 or other tax-favored treatment under Subchapter B of Chapter 1 of Subtitle A of the Code are so qualified, and any trusts intended to be exempt from federal income taxation under the Code are so
exempt. Nothing has occurred with respect to the operation of the Company Plans that could cause the loss of such qualification or exemption, or the imposition of any material liability, penalty or tax under ERISA or the Code on the Company or the
Subsidiary. 
 (d) Neither the Company, the Subsidiary, nor any trade or business (whether or not incorporated) which is or has
ever been under common control, or which is or has ever been treated as a single employer, with any of them under Section 414(b), (c), (m) or (o) of the Code (“ERISA Affiliate”) or to which the Company, the Subsidiary
and/or any ERISA Affiliate has ever contributed or ever been obligated to contribute is an “employee benefit plan” subject to Title IV of ERISA or a “multiemployer plan,” as defined in Section 3(37) of ERISA. 

  
 -14-

 (e) Except as set forth in Schedule 2.17(e), none of the Company Plans provide for
post-employment life or health insurance benefits or coverage for any participant or any beneficiary of a participant, except as may be required under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”)
(“Retiree Benefits”). 
 (f) All amendments and actions required to bring the Company Plans into conformity in
all material respects with all of the applicable provisions of the Code, ERISA and other applicable Laws have been made or taken except to the extent that such amendments or actions are not required by Law to be made or taken until a date after the
Closing Date. 
 (g) All contributions (including all employer contributions and employee salary reduction contributions)
required to have been made under any of the Company Plans or by Law have been timely made, and all contributions for any period ending on or before the Closing Date which are not yet due will have been paid or accrued on the balance sheet on or
prior to the Closing Date. 
 (h) Except as set forth in Schedule 2.17(h), neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated in this Agreement will (i) result in any payment or benefit becoming due to any employee, director or consultant (current, former or retired) of the Company or the Subsidiary,
(ii) increase any benefits otherwise payable under any Company Plan, or (iii) result in the acceleration of the time of payment or vesting of any such benefits under any such plan. 

(i) The consummation of the transactions contemplated by this Agreement (either alone or in combination with another related event) will
not result in any payment or other benefit that would be characterized as an “excess parachute payment” as such term is defined in Section 280G of the Code. Neither the Company nor the Subsidiary is a party to any Contract
pursuant to which it is bound to compensate or reimburse any Person for any excise, penalty or other additional Taxes under Section 409A or 4999 of the Code or any similar provision of Law. Each Company Plan that is a “nonqualified
deferred compensation plan” (within the meaning of Section 409A of the Code) complies and has been operated and administered in compliance with Section 409A of the Code and IRS regulations issued thereunder. 

(j) Neither the Company nor the Subsidiary has (i) increased the compensation, fees or other amounts payable or to become payable
to, granted any bonus, severance or termination pay payable or to become payable to any of its respective directors, officers or other employees, in each case above such amounts payable through July 31, 2012 or such amounts as would have been
payable with respect to any period prior to and including July 31, 2012, (ii) entered into or amended any employment agreement with any of its respective directors, officers or other employees or (iii) established, adopted, entered
into or amended or become obligated to contribute to any Company Plan from and after July 31, 2012. 
 2.18 Investment
Company. The Company is not an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of
1940, as amended. 

  
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 2.19 Insurance. The Company maintains policies of insurance and bonds with respect to
its properties and assets and those of the Subsidiary and the conduct of its business and those of the Subsidiary in such amounts and against such risks and losses as are (i) customarily maintained by Persons engaged in similar businesses and
(ii) adequate to protect such properties, assets and business. Schedule 2.19 lists such insurance policies, true and complete copies of which have been provided to Purchaser. There is no claim pending under any of such policies or bonds
as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. All premiums due and payable under all such policies and bonds have been timely paid and the Company and the Subsidiary are otherwise in
compliance with the terms of such policies and bonds. There are no outstanding unpaid claims under any such policy or bond. Except as set forth in Schedule 2.19, all such policies and bonds remain in full force and effect, and the Company has
no knowledge of any threatened termination of, or material premium increase with respect to, any of such policies. 
 2.20
Real Property. Neither the Company nor the Subsidiary owns any real property in fee. 
 2.21 Customers and
Suppliers. Except as set forth in Schedule 2.21, since March 31, 2012, no significant customer or supplier of the Company or the Subsidiary, including but not limited to any state or federal agency, has given the Company or the
Subsidiary any written notice terminating, suspending, or reducing in any material respect, or specifying an intention to terminate, suspend, or reduce in any material respect in the future, or otherwise reflecting a material adverse change in, the
business relationship between such customer or supplier and the Company or the Subsidiary, and, except as set forth in Schedule 2.21, there has not been any materially adverse change in the business relationship of the Company or the
Subsidiary with any such customer or supplier since March 31, 2012. 
 2.22 Corrupt Practices. Neither the Company
nor the Subsidiary, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company or the Subsidiary, has (i) directly or indirectly, used any corporate funds for unlawful contributions, gifts, entertainment or
other unlawful expenses related to foreign or domestic political activity, (ii) directly or indirectly, made any unlawful payment to any foreign or domestic government officials or employees or to foreign or domestic political parties or
campaigns from corporate funds, (iii) established or maintained any unlawful or unrecorded fund of corporate monies or other assets, (iv) made any false or fictitious entries on the book and records of the Company, (v) failed to
disclose fully any contribution made by the Company or the Subsidiary or made by any person acting on its behalf and of which the Company is aware in violation of Law, or (vi) violated in any material respect any provision of the Foreign
Corrupt Practices Act of 1977, as amended. 
 2.23 SEC Filings; Financial Statements. 

(a) Except as set forth in Schedule 2.23(a), the Company has filed all forms, reports and documents required to be filed with the
SEC since January 1, 2010, all of which are available to the Purchaser on the website maintained by the SEC at http://www.sec.gov (the “SEC Website”). All such required forms, reports and documents (including those that the
Company may file subsequent to the date hereof) are referred to herein collectively as the “Company SEC Reports”. In addition, all documents filed as exhibits to the Company SEC Reports (“Exhibits”) are available on
the SEC Website. All documents required to be filed as Exhibits to the Company SEC Reports have been so filed. As of their respective filing dates, the Company SEC Reports (i) complied in all material respects with the requirements of the
Securities Act or the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), as the case may be, and the rules and regulations of the SEC thereunder applicable to such Company SEC Reports, and (ii) did not at the
time they were filed (or if amended or superseded by a subsequent filing prior to the date of this Agreement, then on the date of such subsequent filing) contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company is engaged only in the business described in the Company SEC Reports and the Company SEC
Reports contain a complete and accurate description in all material respects of the Company’s and the Subsidiary’s business. 

  
 -16-

 (b) Each of the consolidated financial statements (including, in each case, any related
notes thereto) contained in the Company SEC Reports (the “Company Financials”), including any Company SEC Reports filed after the date hereof until the Closing, (i) complied or will comply as to form in all material respects
with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto as of their respective dates, (ii) was or will be prepared in accordance with GAAP applied on a consistent basis throughout the
periods involved and consistent with each other (except as may be indicated in the notes thereto or, in the case of unaudited interim financial statements, as may be permitted by the SEC on Form 10-Q under the Exchange Act) and (iii) fairly
presented in all material respects the consolidated financial position of the Company and the Subsidiary as at the respective dates thereof and the consolidated results of operations and cash flows for the periods indicated, except that the
unaudited interim financial statements were or are reasonably expected to be subject to normal and recurring year-end adjustments. There has been no material change in the Company’s accounting policies except as described in the notes to the
Company Financials. The balance sheet of the Company contained in the Company SEC Report for the quarter ended March 31, 2012, is hereinafter referred to as the “Company Balance Sheet.” Except as set forth on Schedule
2.23(b), neither the Company nor the Subsidiary has incurred any obligations or liabilities (absolute, accrued, contingent or otherwise) of any nature required to be disclosed on a balance sheet or in the related notes to the consolidated
financial statements prepared in accordance with GAAP which are, individually or in the aggregate, material to the business, operations, results of operations or condition (financial or otherwise) of the Company and the Subsidiary taken as a whole,
except liabilities (i) reflected on, reserved against, or disclosed in the notes to the Company Balance Sheet, or (ii) incurred since the date of the Company Balance Sheet in the ordinary course of business consistent with past practice.

 (c) The Company has heretofore made available to the Purchaser complete and correct copies of any amendments or
modifications, which have not yet been filed with the SEC but which are required to be filed, to agreements, documents or other instruments which previously had been filed by the Company with the SEC pursuant to the Securities Act or the Exchange
Act. 

  
 -17-

 2.24 Internal Accounting Controls. Except as set forth in Schedule 2.24, each
of the Company and the Subsidiary maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as set forth in Schedule
2.24, the Company has disclosure controls and procedures (as defined in Rules 13a-14 and 15d-14 under the Exchange Act) that are designed to ensure that material information relating to the Company is made known to the Company’s principal
executive officer and the Company’s principal financial officer or persons performing similar functions. The Company is in compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002 (the
“Act”). Each of the principal executive officer and the principal financial officer of the Company (or each former principal executive officer and former principal financial officer of the Company, as applicable) has made all
certifications required under Sections 302 and 906 of the Act and the related rules and regulations promulgated thereunder. 

2.25 Corporate Records. The Company has delivered or made available to Purchaser true and complete copies of the certificate of
incorporation and bylaws (in each case as amended to the date of this Agreement) of the Company and the certificate of incorporation and bylaws (or other comparable organization or governance documents) of the Subsidiary. Except as set forth on
Schedule 2.25, the minute books of the Company and the Subsidiary previously made available to Purchaser contain complete and accurate minutes of all meetings of the Board of Directors and the board of directors of the Subsidiary (and all
committees thereof) ratified as of the date hereof and accurately reflect all other corporate action of the stockholders of the Company, the Board of Directors and the board of directors of the Subsidiary (and all committees thereof) to the date
hereof, including all amendments and corrections. Schedule 2.25 sets forth minutes from prior meetings of the Board of Directors (and the audit committee thereof) which minutes have not yet been approved by the Board of Directors (or the
audit committee, as the case may be) but which are substantially complete and accurately reflect, in all material respects, the corporate action of the Board of Directors (or the audit committee, as the case may be) taken at such meetings.

 2.26 Nasdaq Compliance and Listing. The Company’s Common Stock is registered pursuant to Section 12(b) of
the Exchange Act and is listed on the NASDAQ Stock Market. Except as set forth in Schedule 2.26, the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange
Act or delisting the Common Stock from the NASDAQ Stock Market. No order ceasing or suspending trading in any securities of the Company or prohibiting the issuance and/or sale of the Shares or the Common Shares is in effect and no proceedings for
such purpose are pending or threatened. Except as set forth in Schedule 2.26, the Company is in compliance with the continued listing requirements and standards of the NASDAQ Stock Market with respect to the Common Stock. The Company shall
comply with all requirements of the National Association of Securities Dealers, Inc. with respect to the issuance of the Shares. 

  
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 2.27 Exchange Notes. As of the date hereof, the total amount, together with all
accrued and unpaid interest, owing on the convertible promissory notes (the “Exchange Notes”) issued by the Company on December 21, 2009 is equal to $2,532,756 in the aggregate. 

ARTICLE III 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER 
 The Purchaser hereby represents and warrants to, and covenants with, the Company as follows: 
 3.1 Investment Representations and Covenants. The Purchaser represents and warrants to, and covenants with, the Company that: (i) the Purchaser is knowledgeable, sophisticated and experienced
in making, and is qualified to make, decisions with respect to investments in securities including the Shares and the Common Shares; (ii) the Purchaser is acquiring the number of Shares set forth in Section 1.1 above in the ordinary
course of its business and for its own account for investment only and with no present intention of distributing any of such Shares or the Common Shares or any arrangement or understanding with any other persons regarding the distribution of such
Shares and the Common Shares within the meaning of Section 2(11) of the Securities Act; (iii) the Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or
otherwise acquire or take a pledge of) any of the Shares or the Common Shares except in compliance with the Securities Act, applicable state securities laws and the respective rules and regulations promulgated thereunder; and (iv) the Purchaser
is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. The Purchaser understands that its acquisition of the Shares and the Common Shares has not been registered under the
Securities Act or registered or qualified under any state securities laws in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of the Purchaser’s investment intent as expressed
herein. 
 3.2 Authorization; Validity of Transaction Documents. The Purchaser further represents and warrants to, and
covenants with, the Company that (i) the Purchaser has full right, power, authority and capacity to enter into the Transaction Documents to which it is a party and to consummate the transactions contemplated thereby and has taken all necessary
action to authorize the execution, delivery and performance of the Transaction Documents to which it is a party, and (ii) upon the execution and delivery of the Transaction Documents to which it is a party, assuming the valid execution thereof
by the Company and the other parties thereto, the Transaction Documents to which it is a party shall constitute valid and binding obligations of the Purchaser enforceable in accordance with their respective terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law). 
 3.3 No Conflict. The execution,
delivery and performance of the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby by the Purchaser will not result in any violation of, be in conflict with or constitute a default under, any
law, statute, regulation, ordinance, material contract or agreement, instrument, judgment, decree or order to which the Purchaser is a party or by which it is bound, except as would not reasonably be expected to have a material adverse effect on the
ability of Purchaser to consummate the transactions contemplated hereby. 

  
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 3.4 No Legal, Tax or Investment Advice. The Purchaser understands that nothing in the
Transaction Documents, the SEC Documents or any other materials presented to the Purchaser in connection with the purchase and sale of the Shares and the Common Shares constitutes legal, tax or investment advice. The Purchaser has consulted such
legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Shares and the Common Shares. The Purchaser acknowledges that it has not relied on any representation or
warranty from the Company or any other Person in making its investment or decision to invest in the Company, except as expressly set forth in this Agreement. 
 3.5 Restrictive Legend. The Purchaser understands that, until such time as a registration statement covering the Shares and the Common Shares has been declared effective or the Shares and the
Common Shares may be sold pursuant to Rule 144 under the Securities Act without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Shares and the Common Shares shall bear a restrictive
legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for the Shares and the Common Shares): 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144
UNDER SAID ACT.” 
 3.6 Sufficient Funds. The Purchaser has sufficient funds to consummate the purchase of the
Shares and such funds will remain available at the Closing. 
 ARTICLE IV 

COVENANTS 

4.1 Efforts. The Company and Purchaser will use their reasonable best efforts to cause the conditions specified in Article
V hereof to be satisfied as soon as practicable. At and from time to time after the Closing, at the request of any party hereto, the other party shall execute and deliver such additional certificates, instruments, and other documents and take
such other actions as such party may reasonably request in order to carry out the purposes of this Agreement. 

  
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 4.2 Conduct of the Business. 

(a) Between the date hereof and the Closing Date, or earlier termination of this Agreement in accordance with the terms hereof, the
Company will (and will cause the Subsidiary to): 
  

	 	(i)	subject to the Company’s current financial condition as described in item 6 of Schedule 2.9, conduct the business of the Company and the Subsidiary only in
the ordinary course of business consistent with past practices in all material respects; provided that any material actions (or omissions) to be taken in the conduct of such business shall require the prior written approval of the Purchaser;

  

	 	(ii)	maintain in good repair all of its material assets and properties, consistent with past practices; 

 

	 	(iii)	use its best efforts to preserve intact in all material respects its current business operations, keep available the services of its officers and employees, and
preserve its relationships with customers, suppliers, licensors, and others having business relationships with it, consistent with past practices; 

  

	 	(iv)	use its best efforts to keep in full force and effect its corporate existence and all material rights, franchises, intellectual property rights and goodwill relating or
pertaining to its business; 

  

	 	(v)	maintain its books, accounts and records in accordance with past practice or as required by GAAP; 

 

	 	(vi)	duly pay and discharge, or cause to be paid and discharged, before the same shall become overdue, all Taxes imposed upon it and its properties, sales and activities, or
any part thereof, or upon the income or profits therefrom, as well as all claims for labor, materials, or supplies that if unpaid could reasonably be expected to by Law become a lien on any of its property; provided that any such Tax need not be
paid if the validity or amount thereof shall currently be contested in good faith by appropriate proceedings and if the Company or the Subsidiary shall have set aside on its books adequate reserves with respect thereto in accordance with GAAP,
consistently applied; and provided, further that it pay all such Taxes forthwith upon the commencement of proceedings to foreclose any lien or other encumbrance that may have attached as security therefore; 

 

	 	(vii)	promptly notify the Purchaser in writing if, to the Company’s knowledge, (i) any of the representations and warranties made by it herein or in any of the
other Transaction Documents cease to be accurate and complete in all material respects, or (ii) it fails to comply with or satisfy any material covenant, condition or agreement to be complied with or satisfied by it hereunder or under any other
Transaction Document; 

  
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	 	(viii)	give notice to the Purchaser in writing within three (3) days of becoming aware of any litigation or proceedings threatened in writing against the Company or the
Subsidiary or any pending litigation and proceedings affecting the Company or the Subsidiary or to which any of them is or becomes a party involving a claim against any of them, stating the nature and status of such litigation or proceedings,
provided, however, that the Purchaser shall not be provided with material non-public information without its express prior written consent; and 

 

	 	(ix)	comply in all material respects with (i) the provisions of its certificate of incorporation and bylaws, (iii) all material agreements by which the Company,
the Subsidiary or any of their respective properties may be bound, and (iv) all applicable decrees, orders, and judgments. 

 (b) Without limiting the generality of Section 4.2(a), and except as otherwise expressly provided in this Agreement, between the date hereof and the Closing Date, or earlier termination of
this Agreement in accordance with the terms hereof, the Company will not (and will not permit the Subsidiary to), without the prior written consent of Purchaser: 
  

	 	(i)	except for the filing of the Certificate of Designations, amend its certificate of incorporation or bylaws (or other applicable organizational or governance documents)
or take any action in respect of any such amendment; 

  

	 	(ii)	authorize for issuance, issue, sell, deliver, or agree or commit to issue, sell, or deliver (whether through the issuance or granting of options, warrants, commitments,
subscriptions, rights to purchase, or otherwise) any stock of any class or series or any other securities convertible into or exercisable or exchangeable for any stock or any equity equivalents; 

 

	 	(iii)	(A) split, combine, or reclassify any shares of its capital stock; (B) declare, set aside, or pay any dividend or make any other distribution or payment (whether
in cash, stock, or property or any combination thereof) in respect of its capital stock; (C) make any other actual, constructive, or deemed distribution in respect of any shares of its capital stock or otherwise make any payments to
stockholders in their capacity as such; or (D) redeem, repurchase, or otherwise acquire any securities of the Company or the Subsidiary; 

  
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	 	(iv)	fail to comply in any material respect with any material Law; 

  

	 	(v)	except as set forth on Schedule 4.2(b)(v), take or omit to be taken any action, which would reasonably be expected to result in any material liability to the
Company and its Subsidiary; 

  

	 	(vi)	directly or indirectly, merge or consolidate with any Person, or sell, transfer, lease or otherwise dispose of all or any substantial portion of its assets in one
transaction or a series of related transactions, 

  

	 	(vii)	make any loans to its directors, officers or stockholders; 

  

	 	(viii)	waive, release, assign, settle or compromise any material rights, claims or litigation; 

 

	 	(ix)	create, incur, assume or suffer to exist, or increase the amount of, any liability for borrowed money, directly or indirectly, other than: (i) indebtedness
existing on the date hereof, consisting of the Exchange Notes; and (ii) purchase money indebtedness (including, without limitation, capital leases to the extent secured by purchase money security interests in equipment acquired pursuant
thereto); 

  

	 	(x)	assume, endorse, be or become liable for or guaranty the obligations of any other Person; 

 

	 	(xi)	enter into any transaction with any Affiliates or its or any of its Affiliate’s equity holders, directors, officers, employees (including upstreaming and
downstreaming of cash and intercompany advances and payments) or amend any material provision of any agreement with any Affiliate, or waive any material right of the Company or the Subsidiary under any such agreement; 

 

	 	(xii)	at any time create any direct or indirect subsidiary, enter into any joint venture or similar arrangement or become a partner in any general or limited partnership or
enter into any management contract permitting third party management rights with respect to the business of the Company or the Subsidiary; 

  

	 	(xiii)	cancel any liability or debt owed to it, except for consideration equal to or exceeding the outstanding balance of such liability or debt, and in any event, in the
ordinary course of business; 

  

	 	(xiv)	create, incur, assume or suffer to exist, any lien, mortgage, pledge, charge or encumbrance of any kind on any of its properties or assets now owned or hereafter
acquired, other than: (A) those, if any, reflected in the consolidated financial statements included in the Company’s most recently filed 10-Q (including the notes thereto), (B) those which are not material in amount and do not
adversely affect the use made and proposed to be made of such property or asset by the Company or the Subsidiary, (C) those for Taxes not yet due and payable, (D) mechanics’, materialmen’s or contractors’ liens or
encumbrances or any similar statutory lien or restriction for amounts not yet due or payable and (E) as set forth on Schedule 4.2(b)(xiv); 

  
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	 	(xv)	make any changes in any of its business objectives, purposes, or operations or engage in any business other than that presently engaged in or presently proposed to be
engaged in by the Company or the Subsidiary; 

  

	 	(xvi)	intentionally take any action, or knowingly omit to take any action, that would or would reasonably be expected to result in (i) any representation or warranty of
the Company set forth in Article II becoming untrue or (ii) any of the conditions to the obligations of Purchaser set forth in Section 5.2 not being fully satisfied; or 

 

	 	(xvii)	agree or commit to agree (in writing or otherwise) to do any of the foregoing. 

4.3 Proxy Statement; Stockholders Consent. Promptly following a written request from the Purchaser, the
Company shall take all action necessary to call a meeting of its stockholders (the “Stockholders Meeting”), the date of such meeting shall occur not later than the sixtieth
(60th) day following such request for the purpose of
seeking approval of the Company’s stockholders (“Stockholder Approval”) of one or more amendments to the Company’s certificate of incorporation providing for (i) the increase in the authorized shares of Common Stock
from 40,000,000 shares to 120,000,000 (the “Common Stock Authorization Amendment”), (ii) a reverse stock split of the Common Stock (the “Reverse Stock Split Authorization Amendment”) which shall permit the
Company to meet the minimum bid requirements set forth in NASDAQ Listing Rule 5550(a)(2) (a “Proposal”), (iii) an election not to be governed by Section 203 of the General Corporation Law of the State of Delaware (the
“DGCL 203 Amendment”) and/or (iv) a change of the Company’s name (the “Name Change Amendment”); provided that the Purchaser may require that Stockholder Approval be obtained by written consent of
stockholders in lieu of a meeting (the “Stockholders Consent”), to be executed by the Purchaser. The form and substance of any such amendments shall be subject to the written approval of the Purchaser. In connection therewith, the
Company will promptly prepare proxy materials (including a proxy statement and form of proxy) or a written consent and an information statement (as applicable) and, after providing the Purchaser and its counsel with an opportunity to review and
comment on such proxy materials or written consent and information statement, file with the SEC such proxy materials or information statement for use in connection with the Stockholders Meeting or Stockholders Consent (as applicable) and, after
receiving and promptly responding to any comments of the SEC thereon, shall promptly mail such proxy materials or information statement to the stockholders of the Company. Prior to responding to any comments of the SEC on such proxy materials or
information statement, the Company shall furnish to the Purchaser and its counsel a copy of any correspondence from the SEC relating to such proxy materials or such information statement and the proposed response to the SEC’s comments and
provide the Purchaser and its counsel with the opportunity to review and comment on such proposed response to the SEC. The Purchaser shall promptly furnish in writing to the Company such information relating to the Purchaser and its investment in
the Company as the Company or the SEC may reasonably request for inclusion in the Proxy Statement (as defined below) or the Information Statement (as defined below). The Company will comply with Section 14(a) of the Exchange Act and the rules
promulgated thereunder in relation to any proxy statement (as amended or supplemented, the “Proxy Statement”) and any form of proxy to be sent to the stockholders of the Company in connection with the Stockholders Meeting, and any
such Proxy Statement shall not, on the date that such Proxy Statement (or any amendment thereof or supplement thereto) is first mailed to stockholders or at the time of the Stockholders Meeting, contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made therein not false or misleading, or omit to state any material fact necessary to correct any statement in any earlier communication with respect to the solicitation of
proxies or the Stockholders Meeting which has become false or misleading. The Company will comply with Section 14(c) of the Exchange Act and the rules promulgated thereunder in relation to any information statement (as amended or supplemented,
the “Information Statement”) to be sent to the stockholders of the Company in connection with the Stockholders Consent, and any such Information Statement shall not, on the date that such Information Statement (or any amendment
thereof or supplement thereto) is first mailed to stockholders, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein not false or misleading, or omit to state any
material fact necessary to correct any statement in any earlier communication with respect to the Stockholders Consent which has become false or misleading. Promptly following (i) receipt of Stockholder Approval pursuant to a Stockholders
Meeting or (ii) the expiration of the twenty-day period following the date the Information Statement is sent to the Company’s stockholders, in either case with respect to the Common Stock Authorization Amendment, the Reverse Stock Split
Authorization Amendment, the DGCL 203 Amendment and/or the Name Change Amendment and in any event within three (3) Business Days thereof, the Company shall file such amendment(s) with the Secretary of State of the State of Delaware and deliver
evidence satisfactory to the Purchaser of such filing(s). 

  
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 4.4 No Solicitation or Negotiation. Until the earlier of the termination of this
Agreement in accordance with Article VI or the Closing Date, the Company will not, and will not cause the Subsidiary or any of its affiliates or any of its or their officers, directors, representatives or agents to, directly or indirectly:
(a) solicit, initiate, consider, encourage, facilitate, induce or accept any other proposal, offer or inquiry from any person (i) relating to any acquisition or purchase of all or any portion of the capital stock of the Company or assets
of the Company, (ii) to enter into any merger, consolidation, reorganization, or other business combination with the Company, or (iii) relating to any acquisition by the Company following which the stockholders of the Company immediately
preceding the consummation of such acquisition cease to hold at least eighty-five percent (85%) of the outstanding equity of the Company immediately following such acquisition (each of the events described in clauses (i), (ii) and
(iii) an “Alternative Transaction”), or (b) participate in any discussions, conversations, negotiations or other communications regarding, or furnish to any other person any information with respect to, or otherwise
cooperate in any way, assist or participate in, encourage or facilitate any effort or attempt by any other person to seek to do, any Alternative Transaction. The Company shall immediately cease and cause to be terminated all existing discussions,
conversations, negotiations and other communications with any persons conducted heretofore with respect to any of the foregoing, and shall promptly inform such persons of the obligations undertaken in this Section 4.4. The Company shall
notify the Purchaser promptly (and in any event within twenty-four (24) hours) if any such proposal, offer or inquiry or other contact with any person with respect thereto is made and shall, in any such notice to the Purchaser, indicate the
identity of the person making such proposal, offer, inquiry or contact and indicate in reasonable detail the terms and conditions of such proposal, offer, inquiry or other contact. The Company agrees not to, without the prior written consent of the
Purchaser, release any person from, or waive any provision of, any confidentiality or standstill agreement to which it is a party. 

  
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 4.5 Injunctive Relief. Each party acknowledges that any breach or threatened breach
of the provisions of Sections 4.3, 4.8, 4.10, 4.11 and 4.12 of this Agreement will cause irreparable injury to the other party for which an adequate monetary remedy does not exist. Accordingly, in the event of any
such breach or threatened breach, the non-breaching party shall be entitled, in addition to the exercise of other remedies, to seek and (subject to court approval) obtain injunctive relief, without necessity of posting a bond, restraining the
breaching party from committing such breach or threatened breach. The right provided under this Section 4.5 shall be in addition to, and not in lieu of, any other rights and remedies available to the parties. 

4.6 Conflicts of Interest. The Purchaser and the Company recognize that Mr. Robert LaPenta and the other Purchaser Designees
shall have, as directors, fiduciary responsibilities, duties and obligations to the Company and its stockholders. The Purchaser and the Company also recognize that Mr. Robert LaPenta has (and the Purchaser Designees may have) fiduciary
responsibilities, duties and obligations to the Purchaser and its affiliates (including its general and limited partners). To the extent that a conflict arises regarding potential investment opportunities, the Purchaser’s portfolio companies or
affiliates, or otherwise, then the Purchaser shall bring the potential conflict and a proposed resolution to the attention of the Board of Directors and the applicable advisory board representing the interests of the Purchaser and its affiliates. If
it is determined that a conflict exists, the independent members of the respective boards shall decide on a resolution which could include Mr. Robert LaPenta (and/or the other applicable Purchaser Designees) recusing himself from any active
involvement (other than as passive investor) on behalf of the Company or the Purchaser or its affiliates in the matter giving rise to the conflict (the “Conflict Policy”). Provided that all the material facts relating to the
conflict are disclosed by Mr. LaPenta (and/or the other applicable Purchaser Designees) to the Board and Mr. LaPenta (and/or the other applicable Purchaser Designees) adheres to the resolution of the conflict that is approved by the
majority of the disinterested members of the Board, Mr. LaPenta (and/or the other applicable Purchaser Designees) will be presumed, with respect to such conflict, to (i) have satisfied and fulfilled the fiduciary duty of a director and
stockholder, (ii) have acted in good faith and in a manner that Mr. LaPenta (and/or the other applicable Purchaser Designees) reasonably believes to be in or not opposed to the best interest of the Company and (iii) not have breached
his duty of loyalty to the Company or derived an improper benefit therefrom. This provision shall not relieve the Board of its fiduciary obligations to the Company and its stockholders under applicable law including, without limitation, its
obligations under Section 145(d) of the Delaware General Corporation Law. 

  
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 4.7 Covenants. 

(a) Each party hereto shall take all commercially reasonable steps necessary or desirable, and proceed diligently and in good faith and
shall use its reasonable best efforts to obtain, as promptly as practicable, (i) all authorizations, consents, orders and approvals of all Governmental Entities that may be or become necessary for such party’s authorization, execution and
delivery of, and the performance of its obligations pursuant to, this Agreement and the other Transaction Document, and (ii) all approvals and consents required under all Material Contracts to which the Company or the Subsidiary is a party to
consummate the transactions contemplated hereby. Each party will cooperate fully (including, without limitation, by providing all information the other party reasonably requests) with the other parties in promptly seeking to obtain all such
authorizations, consents, orders and approvals. 
 (b) Each party hereto shall promptly inform the other party of any
communication from any Governmental Entity regarding any of the transactions contemplated by this Agreement. If any party or affiliate thereof receives a request for additional information or documentary material from any such Governmental Entity in
respect of the transactions contemplated hereby, then such party will endeavor in good faith to make, or cause to be made, as soon as reasonably practicable and after consultation with the other party, an appropriate response in compliance with such
request. 
 (c) Promptly following the Purchaser’s written request and in any event prior to the date of any such
subsequent business combination, the Company shall take all action possible to exempt any Person that becomes an affiliate or associate (as such terms are defined in Section 203 of the General Corporation Law of the State of Delaware) following
the Closing and any subsequent business combination (as such term is defined in Section 203 of the Delaware General Corporation Law) between the Company and any such affiliate and/or associate of the Purchaser from the provisions of any
anti-takeover, business combination or control share law or statute (including Section 203 of the General Corporation Law of the State of Delaware) binding on the Company or to which the Company or any of its assets and properties may be
subject or any provision of the Company’s certificate of incorporation, bylaws or any stockholder rights agreement that is or could become applicable to any such affiliate and/or associate of the Purchaser as a result of any such business
combination. 
 4.8 Information Rights. Unless this Agreement is terminated pursuant to Article VI, from and after
the date hereof and for so long as the Purchaser (or an Affiliate thereof) owns that number of Shares or Common Shares into which Shares have been converted that in the aggregate (assuming conversion of the Shares) equals at least five percent
(5%) of the outstanding Common Stock, (i) the Company will permit (and will cause the Subsidiary to permit) the authorized representatives of the Purchaser full and free access, at all times during regular working hours, and upon
reasonable advance notice, to any of the properties of the Company and the Subsidiary, including their respective books and records, and to discuss their respective affairs, finances and accounts with the Company’s and the Subsidiary’s
respective officers, agents and representatives, (ii) as soon as practicable, but in any event within thirty (30) days of the end of each calendar month after Closing, the Company will deliver to the Purchaser an unaudited consolidated
income statement and statement of cash flows for the Company and the Subsidiary for such month, and an unaudited consolidated balance sheet for the Company and the Subsidiary as of the end of such month, all prepared in accordance with GAAP (except
that such financial statements may be subject to normal year-end audit adjustments and need not contain all notes that may be required in accordance with GAAP), (iii) as soon as practicable, but in any event within thirty (30) days before
the end of each fiscal year, the Company will deliver to the Purchaser a budget and business plan for the Company and the Subsidiary for the next fiscal year, prepared on a monthly basis, including balance sheets, income statements and statements of
cash flows for such months and, promptly after prepared, any other budgets or revised budgets prepared by the Company and/or the Subsidiary and (iv) the Company will deliver to the Purchaser such other information relating to the condition
(financial or otherwise), properties, assets (including intangible assets), business, operations or results of operations, prospects and/or corporate affairs of the Company and the Subsidiary as the Purchaser may from time to time reasonably
request. 

  
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 4.9 Public Announcements. The Company and Purchaser will consult with each other and
will mutually agree (the agreement of each party not to be unreasonably withheld) upon the content and timing of any press release or other public statement in respect of the transactions contemplated hereby and shall not issue any such press
release or make any such public statement prior to such consultation and agreement, except as may be required by applicable law. 
 4.10 Right of First Refusal for New Shares. 
 (a) Until such time as the
Purchaser (or an Affiliate thereof) no longer owns that number of Shares or Common Shares into which Shares have been converted that in the aggregate (assuming conversion of the Shares) equals at least five percent (5%) of the outstanding
Common Stock, the Company hereby grants to the Purchaser a right of first refusal to purchase shares of any New Shares (as defined below) which the Company may, from time to time, propose to sell and issue. Such right of first refusal shall allow
Purchaser to purchase a pro rata portion of the New Shares proposed to be issued, determined with reference to the aggregate number of outstanding shares of Common Stock held by the Purchaser or its permitted transferees before the proposed issuance
of New Shares. The right of first refusal granted hereunder shall terminate if unexercised within 15 Business Days after receipt of the notice described in Section 4.10(b) below. “New Shares” shall mean any authorized
but unissued shares, and any treasury shares, of capital stock of the Company and all rights, options or warrants to purchase capital stock, and securities of any type whatsoever that are, or may become, convertible into capital stock;
provided, however, that the term “New Shares” does not include securities issued (i) to employees, directors, consultants and other service providers for the primary purpose of soliciting or retaining their services;
(ii) pursuant to the conversion or exercise of convertible or exercisable securities outstanding on the date hereof; (iii) as consideration in connection with the acquisition of another corporation or entity by the Company by
consolidation, merger, purchase of all or substantially all of the assets, or other reorganization in which the Company acquires, in a single transaction or series of related transactions, all or substantially all of the assets of such other
corporation or entity or fifty percent (50%) or more of the voting power of such other corporation or entity or fifty percent (50%) or more of the equity ownership of such other entity; (iv) to an entity as a component of any business
relationship with such entity for purposes of (A) joint venture, technology licensing or development activities, (B) distribution, supply or manufacture of the Company’s products or services or (C) any other arrangements
involving corporate partners that are primarily for purposes other than raising capital; (v) to financial institutions or lessors in connection with commercial credit arrangements, equipment financing or similar transactions; or (vi) in
exchange for the Exchange Notes as set forth in Section 5.2(l); provided, that in the case of the foregoing clauses (i), (iii), (iv) and (v), such arrangements shall have been approved by a majority of the Board of Directors.

  
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 (b) If the Company proposes to issue New Shares, it shall give the Purchaser written notice
thereof, describing the New Shares, the number thereof to be issued, the purchase price therefor and the terms upon which the Company proposes to issue the same. The Purchaser shall have 15 Business Days from the date such notice is given to
determine whether to purchase all or any portion of the Purchaser’s pro rata share of such New Shares for the purchase price and upon the terms specified in the notice by giving written notice to the Company and stating therein the number of
New Shares to be purchased. 
 (c) If the Purchaser has not elected to purchase all of the New Shares proposed to be issued
(within the time period for notifying the Company set forth above), then the Company shall have 60 calendar days in which to complete the proposed issuance of the portion of the New Shares not purchased by the Purchaser at a price not less than that
contained in the notice previously given to the Purchaser and on terms and conditions not more favorable to the third party than those contained in such notice. If, at the end of such 60-calendar day period, the Company has not completed such
issuance of New Shares, the Company shall no longer be permitted to issue such New Shares pursuant to this Section 4.10 without again fully complying with all of the provisions of this Section 4.10. 

4.11 Nasdaq Matters. The Company has, prior to the date hereof, obtained from the NASDAQ Stock Market a valid exception under
NASDAQ Rule 5635(f) from NASDAQ Rules 5635(b), 5635(d) and 5640 and IM-5640 with respect to the issuance of all of the Shares and the Common Shares in accordance with all of the terms and conditions of the Transaction Documents (the “NASDAQ
Exception”). Within one (1) Business Day of the date hereof, in compliance with NASDAQ Rule 5635, the Company shall cause to be mailed to all of the Company’s stockholders, at the Company’s expense, a written notice, in form
and substance reasonably satisfactory to the Purchaser (the “Exception Notice”), alerting such stockholders to the Company’s omission to seek the stockholder approval that would otherwise be required in connection with the
transactions contemplated by this Agreement by virtue of the NASDAQ Exception, and indicating that the Board of Directors has expressly approved the transactions contemplated by this Agreement, including the issuance of the Preferred Shares to the
Purchaser, and that the audit committee of the Board of Directors has expressly approved the Company’s request to the NASDAQ Stock Market for the NASDAQ Exception in connection therewith. The Company shall comply with all requirements of the
National Association of Securities Dealers, Inc. with respect to the issuance of the Common Shares. Promptly following the Purchaser’s written request, the Company shall take all necessary actions, including without limitation, complying with
all requirements of the National Association of Securities Dealers, Inc. and providing appropriate notice to NASDAQ with respect to the Preferred Shares and the Common Shares in order to obtain the listing of the Common Shares on the NASDAQ Stock
Market as soon as reasonably practicable following such request. Following the Closing and for so long as the Company qualifies as a “Controlled Company” (as defined in the NASDAQ Listing Rules), the Company shall comply with such
requirements of the NASDAQ Stock Market as shall permit the Company to rely on the “Controlled Company” exemption from the requirements of NASDAQ Listing Rules 5605(b), (d) and (e), including without limitation, complying with the
disclosure requirements set forth in Instruction 1 to Item 407(a) of Regulation S-K of the Securities Act of 1933, as amended. 

  
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 4.12 Reservation of Common Stock. Following the Closing and until the filing of the
Common Stock Authorization Amendment with the Secretary of State of the State of Delaware in accordance with Section 4.3, the Company shall at all times reserve and keep available 19,377,086 of its authorized but unissued shares of
Common Stock (in each case as appropriately adjusted for any stock dividend, stock split, reverse stock split, reclassification, stock combination or other recapitalization occurring after the date hereof), solely for the purpose of providing for
the conversion of the Preferred Stock. Following the filing of the Common Stock Authorization Amendment with the Secretary of State of the State of Delaware in accordance with Section 4.3, the Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for the purpose of providing for the conversion of the Preferred Stock, such number of shares of Common Stock as shall from time to time equal the number of shares
sufficient to permit the full conversion of the Preferred Stock issued pursuant to this Agreement in accordance with the terms of the Certificate of Designations. 
 ARTICLE V 
 CONDITIONS TO CLOSING 

5.1 Conditions to the Company’s Obligations. The Company’s obligation to complete the purchase and sale of the Shares
and deliver such stock certificates to the Purchaser at the Closing shall be subject to the following conditions, any one or more of which may be waived by the Company (to the extent legally permissible): 

(a) Payment of Purchase Price. The Company shall have received same-day funds in the full amount of the purchase price for the
Shares being purchased hereunder; 
 (b) Representations and Warranties True. The representations and warranties made by
the Purchaser shall be true and correct in all material respects as of the Closing, except to the extent such representations and warranties expressly related to any earlier date, in which case such representations and warranties shall be true and
correct in all material respects on and as of such earlier date or after taking into account any changes contemplated by this Agreement; 
 (c) Compliance with Covenants. The Purchaser shall have performed and complied in all material respects with all covenants and agreements contained in this Agreement that are required to be
performed or complied with by it on or before the Closing; 
 (d) Certificate. The Purchaser shall have delivered to the
Company a certificate executed by an officer of the Purchaser, dated as of the Closing Date, as to the matters set forth in Sections 5.1(b) and 5.1(c) above; and 
 (e) Registration Rights Agreement. The Purchaser shall have executed and delivered a Registration Rights Agreement in the form of Exhibit B attached hereto (the “Registration Rights
Agreement”). 
 5.2 Conditions to the Purchaser’s Obligations. The Purchaser’s obligation to accept
delivery of such stock certificate(s) and to pay for the Shares evidenced thereby shall be subject to the following condition, any one or more of which may be waived by the Purchaser (to the extent legally permissible): 

(a) Representations and Warranties True. The representations and warranties made by the Company shall be true and correct in all
material respects as of the Closing, except to the extent such representations and warranties expressly related to any earlier date, in which case such representations and warranties shall be true and correct in all material respects on and as of
such earlier date or after taking into account any changes contemplated by this Agreement; 

  
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 (b) Compliance with Covenants. The Company shall have performed and complied with in
all material respects all covenants and agreements contained in this Agreement that are required to be performed or complied with by it on or before the Closing; 
 (c) Certificate. The Company shall have delivered to the Purchaser a certificate executed by the chief executive officer of the Company, dated the Closing Date, as to the matters set forth in
Sections 5.2(a) and 5.2(b) above; 
 (d) Registration Rights Agreement. The Company shall have executed and
delivered the Registration Rights Agreement attached hereto as Exhibit B; 
 (e) Filing Evidence. The Company
shall have delivered evidence satisfactory to the Purchaser of the filing of the Certificate of Designations with the Secretary of State of the State of Delaware; 
 (f) Shares. The Company shall have executed and delivered the Shares to the Purchaser; 
 (g) Cash at Closing. The aggregate cash of the Company and the Subsidiary and all other items included as cash or cash equivalents on the Company Financials as of the Closing Date, before giving
effect to (x) the payment obligations of the Company pursuant to Section 8.3 and the Company’s costs and expenses incurred in connection with the transactions contemplated hereby, (y) payments by the Company in settlement
of the litigation described in Section 5.2(m) below and (z) payment by the Company of up to $880,000 in cash in connection with the exchange and termination of the Exchange Notes referred to in Section 5.2(l) below,
shall be no less than approximately $500,000; 
 (h) Litigation. No action, suit, or proceeding shall have been initiated
or threatened for the purpose or with the probable or reasonably likely effect of enjoining or preventing the consummation of the transactions contemplated hereby or seeking material damages on account thereof; 

(i) Exemption Notice. Ten (10) calendar days shall have elapsed from the date the Company mailed the Exception Notice to its
stockholders in accordance with Section 4.11; 
 (j) Board of Directors. Each of the members of the Board of
Directors and of the board of directors of the Subsidiary immediately prior to the Closing shall have delivered a letter of resignation, in form and substance satisfactory to the Purchaser; 

  
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 (k) Officer Certifications. Each of the President and Chief Executive Officer of the
Company and the Chief Financial Officer of the Company shall have executed and delivered to the Purchaser a certificate, dated the Closing Date, in the form of Exhibit C hereto; 

(l) Exchange Notes. The Company shall have terminated the Exchange Notes in consideration for a combination of cash and shares of
Common Stock on terms reasonably acceptable to Purchaser; 
 (m) Philips Settlement Agreement. The Company shall have
entered into a written settlement agreement settling the lawsuit filed by Koninklijke Electronics N.V. and Philips Solid-State Lighting Solutions, Inc. in the United States District Court for the District of Massachusetts on March 26, 2012
(civil action no. 12-cv-10549) on terms reasonably acceptable to Purchaser; 
 (n) Expenses. The Company shall have paid,
or made arrangements acceptable to Purchaser for the payment of, certain costs and expenses of Purchaser incurred in accordance with Section 8.3 hereof; 
 (o) Third Party Approvals. All material third party consents and approvals required to be obtained for the transactions contemplated hereby shall have been obtained and be in full force and effect
as of the Closing; 
 (p) Invention Assignment Agreements. The Company and the Subsidiary shall have obtained, in the
form reasonably acceptable to Purchaser, written and enforceable proprietary information and invention disclosure and Intellectual Property Rights assignments from all Authors who are currently employed by or providing services to the Company; and

 (q) Directors and Officers Insurance. The Company shall have obtained directors and officers insurance policies,
including a six-year tail policy, on terms reasonably acceptable to Purchaser. 
 ARTICLE VI 

TERMINATION 
 6.1 Termination. This Agreement and the transactions contemplated hereby may be terminated at any time prior to the Closing: 

(a) by mutual written consent of the Purchaser and the Company; 
 (b) by the Purchaser, if the Company shall have breached or failed to perform in any material respect any of its obligations, covenants or agreements under this Agreement, or if any of the representations
and warranties of the Company set forth in this Agreement shall not be true and correct to the extent set forth in Sections 5.2(a) and 5.2(b), and such breach, failure or misrepresentation is not cured to the Purchaser’s
reasonable satisfaction within 10 days after the Purchaser gives the Company written notice identifying such breach, failure or misrepresentation; 

  
 -32-

 (c) by the Company, if the Purchaser shall have breached or failed to perform in any
material respect any of its obligations, covenants or agreements under this Agreement, or any of the representations and warranties of the Purchaser set forth in this Agreement shall not be true and correct to the extent set forth in Sections
5.1(b) and 5.1(c), and such breach, failure or misrepresentation is not cured to the Company’s reasonable satisfaction within 10 days after the Company gives the Purchaser written notice identifying such breach, failure or
misrepresentation; 
 (d) by the Purchaser, or the Company, if the Closing shall not have occurred on or before
September 28, 2012 or such other date, if any, as the Purchaser and the Company may agree in writing, except to the extent that the failure to consummate the transactions contemplated by this Agreement arises out of or results from the material
breach of the party seeking to terminate; or 
 (e) by the Purchaser if the Company shall have materially breached its
obligations under Section 4.4 above. 
 6.2 Effect of Termination. In the event that this Agreement is
validly terminated as provided herein, then each of the parties shall be relieved of their duties and obligations arising under this Agreement after the date of such termination and such termination shall be without liability or obligation to the
Purchaser or the Company (or any of their respective directors, officers, employees, stockholders, Affiliates, agents, representatives or advisors); provided that no such termination shall relieve either party of liability for a breach of
this Agreement or fraud prior to the effective date of such termination. 
 ARTICLE VII 

INDEMNIFICATION 
 7.1 Survival. The representations and warranties contained herein, in any other Transaction Document or in any certificate or other writing delivered pursuant hereto or in connection herewith shall
survive the Closing until the eighteen (18) month anniversary of the Closing and any investigation or finding made by or on behalf of the Purchaser or the Company; provided that the representations and warranties in Sections 2.1,
2.2, 2.3, and 2.4 shall survive indefinitely or until the latest date permitted by law and Section 2.15 shall survive for the applicable statute of limitations period. The covenants and agreements contained herein or
in any certificate or other writing delivered pursuant hereto or in connection herewith shall survive the Closing indefinitely or for the shorter period explicitly specified herein or therein. Notwithstanding the preceding sentences, any breach of
representation, warranty, covenant or agreement in respect of which indemnity may be sought under this Agreement shall survive the time at which it would otherwise terminate pursuant to the preceding sentences, if written notice of the inaccuracy or
breach thereof giving rise to such right of indemnity shall have been given to the party against whom such indemnity may be sought prior to such time. 
 7.2 Limits on Claims. The parties’ indemnification obligations under this Agreement shall be subject to the following: 
 (a) Neither party shall have any obligation to indemnify or hold harmless the other party unless, and only to the extent that, the aggregate amount of Losses incurred by the such other party exceeds
$50,000; and 

  
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 (b) Neither party shall have any obligation to make indemnification payments hereunder that
exceed in the aggregate $3,500,000. 
 In determining the foregoing thresholds and in otherwise determining the amount of any Losses for which a
party is entitled to assert a claim for indemnification hereunder, the amount of any such Losses shall be determined disregarding any materiality or similar qualifiers contained in this Agreement or any other Transaction Document or in any other
certificate or writing delivered pursuant to this Agreement. 
 7.3 Indemnification by the Company. From and after the
Closing Date, subject to any applicable limitations set forth in Section 7.1 and Section 7.2, the Company shall indemnify and hold the Purchaser and its affiliates, and their respective officers, directors, stockholders,
partners, managers, members, employees, agents, and representatives (the “Purchaser Indemnified Parties”) harmless from and against all claims, liabilities, obligations, costs, damages, losses and expenses (including reasonable
attorneys fees) of any nature (each a “Loss” and collectively, “Losses”) arising out of or relating to any breach or violation of the representations, warranties, covenants or agreements of the Company set forth in
this Agreement or any other Transaction Document or in any other certificate or writing delivered by the Company pursuant to this Agreement (in each case disregarding for this purpose any materiality, Material Adverse Effect or similar qualifiers
contained herein or therein). 
 7.4 Indemnification by the Purchaser. From and after the Closing Date, subject to any
applicable limitations set forth in Section 7.1 and Section 7.2, the Purchaser shall indemnify and hold the Company and its affiliates, and their respective officers, directors, stockholders, partners, managers, members,
employees, agents, and representatives (the “Company Indemnified Parties”) harmless from and against all Losses arising out of or relating to any breach or violation of the representations, warranties, covenants or agreements of the
Purchaser set forth in this Agreement or any other Transaction Document or in any other certificate or document delivered by the Purchaser pursuant to this Agreement (in each case disregarding for this purpose any materiality or similar qualifiers
contained herein or therein). 
 7.5 Procedure for Indemnification. Any party making a claim for indemnification
hereunder shall promptly notify the indemnifying party of the claim in writing, describing the claim in reasonable detail, the amount thereof, and the basis therefor; provided, however, that the failure to provide prompt notice shall not
relieve the indemnifying party of its indemnification obligations hereunder, except to the extent that the indemnifying party is actually prejudiced by the failure to give such prompt notice. The party from whom indemnification is sought shall
respond to each such claim within thirty (30) days of receipt of such notice. No action shall be taken pursuant to the provisions of this Agreement or otherwise by the party seeking indemnification until the later of (i) the expiration of
the 30-day response period (unless reasonably necessary to protect the rights of the party seeking indemnification), or (ii) 30 days following the termination of the 30-day response period if a response, received within such 30 day period by
the party seeking indemnification, requests an opportunity to cure the matter giving rise to indemnification (and, in such event, the amount of such claim for indemnification shall be reduced to the extent so cured). 

  
 -34-

 7.6 Remedies Exclusive. Subject to Section 4.5 hereof and except with
respect to fraud, the remedies provided in this Article VII shall be the exclusive remedies of the parties hereto after the Closing in connection with the transactions contemplated by this Agreement, including without limitation any breach or
non-performance of any representation, warranty, covenant or agreement contained herein or in any other Transaction Document or in any other certificate or document delivered pursuant to this Agreement. Subject to Section 4.5 hereof and
except with respect to fraud, after the Closing, no party may commence any suit, action or proceeding against any other party hereto with respect to the subject matter of this Agreement, whether in contract, tort or otherwise, except to enforce such
party’s express rights under this Article VII. No officer, director, employee or agent of the Company shall be personally liable in any manner or to any extent (whether in contract or tort) under or in connection with this Agreement. The
limitation of liability provided in this Section 7.6 is in addition to, and not in limitation of, any limitation on liability applicable to any such person provided by law or by this Agreement or any other contract, agreement or
instrument. 
 7.7 Right of Set-Off. If the indemnifying party has not satisfied in cash any indemnification obligation
owed by them hereunder, the party seeking indemnification may, at its discretion, satisfy the unpaid portion of such obligation by, to the extent permitted by law, setting-off against any amounts due and owing from the party seeking indemnification
to the indemnifying party. 
 ARTICLE VIII 
 MISCELLANEOUS 
 8.1 Broker’s Fee. Each of the parties hereto
hereby represents to the other that, on the basis of any actions and agreements by it, there are no brokers or finders entitled to compensation in connection with the sale of the Shares to the Purchaser other than Canaccord Genuity Inc., which
compensation shall be borne by the Company and shall be paid upon the Closing. In addition, PCE Valuations, LLC shall be compensated by the Company on or before the Closing for rendering a fairness opinion with respect to the transactions
contemplated by this Agreement. 
 8.2 Assignment. This Agreement and the rights and obligations hereunder shall not be
assigned, delegated, or otherwise transferred (whether by operation of law, by contract, or otherwise) without the prior written consent of the other party hereto; provided, however, that Purchaser may, without obtaining the prior written consent of
the Company, assign, delegate, or otherwise transfer its rights and obligations hereunder to any Affiliate of Purchaser who is an “accredited investor” as set forth in Section 3.1 and agrees to be bound by the terms and
conditions of this Agreement. The Company shall execute such acknowledgements of such assignments and collateral assignments in such forms as Purchaser may from time to time reasonably request. Any attempted assignment, delegation, or transfer in
violation of this Section 8.2 shall be void and of no force or effect. “Affiliate” means, in respect of any Person, any other Person that is directly or indirectly controlling, controlled by, or under common control with
such Person or any of its Subsidiaries, and the term “control” (including the terms “controlled by” and “under common control with”) means having, directly or indirectly, the power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting securities or by contract or otherwise. 

  
 -35-

 8.3 Expenses. Whether or not the transactions contemplated hereby are consummated,
(a) the legal, accounting, financing and due diligence expenses incurred by the Purchaser in connection with such transactions will be borne by the Purchaser; provided that upon the Closing, the Company shall pay such expenses of the
Purchaser up to a maximum of $250,000, and (b) the legal and other costs and expenses incurred by the Company in connection with the transactions contemplated hereby will be borne by the Company; provided that such costs and expenses of
the Company shall not exceed $750,000 in the aggregate. The Company shall promptly, but in any event no later than two (2) business days prior to the Closing, provide a detailed summary of the legal and other costs and expenses incurred by the
Company in connection with the transactions contemplated hereby. 
 8.4 Notices. All notices, requests, consents and
other communications hereunder shall be in writing, shall be mailed by first-class registered or certified airmail, facsimile (with receipt confirmed by telephone) or nationally recognized overnight express courier postage prepaid, and shall be
deemed given when so mailed and shall be delivered as addressed as follows: 
  

	 	(a)	if to the Company, to: 

 Nexxus
Lighting, Inc. 
 124 Floyd Smith Drive, Suite 300 
 Charlotte, North Carolina 
 Attention: President and CEO 

with copies to: 

Lowndes, Drosdick, Doster, Kantor & Reed, PA 
 215 North Eola Drive 
 Orlando, Florida 32801 

Attn.: Suzan A. Abramson, Esq. 
 Telecopy No.: 407-843-4444 
 Telephone No.: 407-418-6293 

or to such other person at such other place as the Company shall designate to the Purchaser in writing; and 

 

	 	(b)	if to the Purchaser, to: 

 RVL 1
LLC 
 177 Broad Street 
 Stamford, CT 06901 
 Attention: Robert V. LaPenta 

  
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 with a copy to: 
 Lowenstein Sandler PC 
 1251 Avenue of the Americas 

New York, NY 10020 
 Attention: Marita A. Makinen, Esq. 
 or at such other address as may have been
furnished to the Company in writing. 
 8.5 Changes. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and Purchaser. 
 8.6 Headings. The headings of the various Sections of this
Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement. 
 8.7
Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby. 
 8.8 Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without giving effect to the principles of conflicts of laws. 
 8.9 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been
signed by each party hereto and delivered to the other parties. The submission of a signature page transmitted by facsimile (or other electronic transmission, including pdf) shall be considered as an “original” signature page for purposes
of this Agreement. 
 8.10 Entire Agreement. This Agreement, the attached Exhibits and Schedules, the non-disclosure
agreement between the Company and the Purchaser, and the other agreements, documents and instruments contemplated hereby and referenced herein contain the entire understanding of the parties, and there are no further or other agreements or
understanding, written or oral, in effect between the parties relating to the subject matter hereof, including but not limited to that certain Letter of Intent, dated as of August 4, 2012, by and between the Company and Aston Capital, LLC,
unless expressly referred to herein. 
 8.11 Press Releases. Press releases shall be mutually agreed upon by the Company
and the Purchaser before they are externally distributed. 
 8.12 No Third-Party Beneficiaries. This Agreement is
intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person (other than the Purchaser Indemnified Parties and the
Company Indemnified Parties). 
 [Signatures appear on following page.] 

  
 -37-

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representatives as of the day and year first above written. 
  

			
	COMPANY:
	
	NEXXUS LIGHTING, INC.
		
	By	 	 /s/ Michael Bauer

		 	Name: Michael Bauer
		 	Title: Chief Executive Officer

  

			
	PURCHASER:
	
	RVL 1 LLC
		
	By	 	 /s/ Robert V. LaPenta

		 	Name: Robert V. LaPenta
		 	Title: Chief Executive Officer

  
 [Signature
Page to Investment Agreement]Exchange Agreement

 Exhibit 10.2 
 THE INFORMATION CONTAINED IN THIS AGREEMENT AND OTHER MATERIALS SUPPLIED TO THE HOLDERS OF CERTAIN CONVERTIBLE PROMISSORY NOTES ISSUED BY THE COMPANY IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED
HEREBY IS CONFIDENTIAL, MATERIAL NON-PUBLIC INFORMATION OF THE COMPANY, AND IS BEING SUBMITTED WITH THE UNDERSTANDING THAT SUCH NOTEHOLDERS WILL NOT REPRODUCE OR RELEASE THIS AGREEMENT, INCLUDING THE EXHIBITS AND SCHEDULES HERETO, DISCUSS ANY
INFORMATION CONTAINED IN IT, OR USE IT FOR ANY PURPOSE OTHER THAN EVALUATING THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. BY ACCEPTING DELIVERY OF THIS AGREEMENT, AND OTHER MATERIALS, EACH SUCH NOTEHOLDER AGREES THAT HE/IT (A) WILL NOT
REPRODUCE ANY PART OF THIS AGREEMENT OR DOCUMENTS SUPPLIED WITH IT OR DIVULGE OR MAKE AVAILABLE TO ANYONE, OTHER THAN PROFESSIONAL ADVISORS, ANY OF THEIR CONTENTS AND (B) WILL NOT PURCHASE OR SELL SECURITIES OF THE COMPANY OR COMMUNICATE SUCH
INFORMATION TO ANY OTHER PERSON UNDER CIRCUMSTANCES IN WHICH IT IS REASONABLY FORESEEABLE THAT SUCH PERSON IS LIKELY TO PURCHASE OR SELL SECURITIES OF THE COMPANY WHILE IN POSSESSION OF MATERIAL NON-PUBLIC INFORMATION ABOUT THE COMPANY.

 NEXXUS LIGHTING, INC. 
 TERMINATION AND EXCHANGE AGREEMENT 
 THIS TERMINATION AND
EXCHANGE AGREEMENT (this “Agreement”) is made and entered into as of September 12, 2012 (the “Signing Date”), by and between Nexxus Lighting, Inc., a Delaware corporation (the “Company”), and each of the
holders (individually, a “Noteholder,” and collectively, the “Noteholders”) of convertible promissory notes set forth on Schedule I hereto. The Company and the Noteholders are sometimes referred to herein individually as a
“Party” or collectively as the “Parties.” 
 BACKGROUND 

A. Each of the Noteholders owns a convertible promissory note of the Company dated December 21, 2009, as amended by that certain
Amendment to Convertible Promissory Note dated as of February 28, 2012, which convertible promissory note is convertible into shares of the Company’s Common Stock, $.001 par value per share (the “Common Stock”) on the terms set
forth therein. Such convertible promissory notes as amended by the amendments thereto are referred to herein as the “Notes.” Such Notes were issued pursuant to that certain Preferred Stock Exchange Agreement, dated as of October 29,
2009, by and among the Company and each of the holders listed on Schedule I thereto (the “Exchange Agreement” and together with the Notes, the “Note Documents”). 

B. The Board of Directors of the Company has determined that it is in the best interests of the Company to terminate and exchange the
Notes for cash and shares of the Company’s Common Stock as set forth herein. 
 C. Each Noteholder owns the Note set forth
opposite the name of such Noteholder on Schedule I hereto, and has agreed to terminate and exchange such Note upon the terms and conditions set forth in this Agreement. 

 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and of the mutual premises, covenants, representations, warranties and
agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 

ARTICLE I 

EXCHANGE OF NOTES 
 1.01 Exchange. Subject to the terms and conditions hereof, and in reliance on the respective representations, warranties and covenants of the Parties contained herein, effective simultaneously with
the closing of the transactions contemplated by that certain Investment Agreement (the “Investment Agreement”) between the Company and RVL 1, LLC (the “Exchange Date”), and conditioned upon the closing of the transactions
contemplated by the Investment Agreement, each Note together with the outstanding principal amount and any accrued and unpaid interest payable with respect to such Note shall automatically be cancelled, terminated, discharged, and exchanged for
shares of Common Stock of the Company (the “Common Shares”) and cash (the “Cash Consideration”) as set forth in Schedule I attached hereto and incorporated herein (the “Exchange”). Concurrently with the execution
of this Agreement, each Noteholder shall deliver such holder’s original Note to the principal office of the Company. Subject to receipt by the Company of a fully executed copy of this Agreement, on the Exchange Date the Company shall issue to
each Noteholder the applicable Common Shares and shall pay the Cash Consideration in immediately available funds against delivery by such Noteholder of his or its Note, free and clear of any and all security interests or transfer, voting or other
restrictions or encumbrances of any kind, except as imposed by applicable securities laws. 
 (a) On the Exchange Date, each
Noteholder of record shall be deemed to be the holder of record of the Common Shares issuable to such Noteholder in the Exchange, notwithstanding that the Note shall not have been surrendered at the office of the Company, that notice from the
Company shall not have been received by such Noteholder of record, or that certificates evidencing such Common Shares shall not then be actually delivered to such Noteholder. All Notes that are required to be delivered for exchange in accordance
with the provisions of this Agreement, from and after the Exchange Date shall be deemed to have been cancelled, terminated, discharged, paid in full, be of no further force or effect and shall be deemed exchanged for the applicable Common Shares and
Cash Consideration for all purposes, notwithstanding any failure of the holder or holders thereof to surrender such Notes on or prior to such date. No Exchange will be consummated if a closing of the transactions contemplated by the Investment
Agreement has not been consummated on or before December 31, 2012 in accordance with the terms thereof (the “Termination Date”). 
 (b) The Notes and all of the obligations evidenced thereby shall be and shall be deemed canceled, terminated, discharged, paid in full, and of no further force or effect upon consummation of the Exchange
pursuant to the terms of this Agreement without any further action on the part of any person and the Company shall not have any further obligation to any Noteholder under the Note Documents. 

  
 -2-

 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES OF THE NOTEHOLDERS 
 Each Noteholder hereby
represents and warrants to the Company as follows: 
 2.01 Ownership. Such Noteholder is the sole record holder and
beneficial owner of the Note set forth opposite the name of such Noteholder on Schedule I hereto. Such Noteholder’s Note is owned by such Noteholder free and clear of all liens, pledges, mortgages, charges, security interests or
encumbrances (“Encumbrances”) of any kind. Such Noteholder is not a party to any agreement or arrangement which will impose any such Encumbrance upon such Noteholder’s Note as a result of the transactions contemplated hereby.

 2.02 Power and Authority; Enforceability. Such Noteholder has the power and authority to execute and deliver this
Agreement, to perform his or its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement constitutes a legal, valid, and binding obligation of such Noteholder, and is enforceable against such Noteholder in
accordance with its terms. 
 2.03 Approvals. No consent, approval, authorization or order of any person, entity, court,
administrative agency or governmental authority is required for the execution, delivery or performance of this Agreement by such Noteholder. 
 2.04 Conflicts. The execution, delivery and performance of this Agreement by such Noteholder will not (a) conflict with, or result in a breach of, or constitute a default under, or result in a
violation of, any agreement or instrument to which such Noteholder is a party or by which the property of such Noteholder is bound or (b) result in the violation of any applicable law or order, judgment, writ, injunction, decree or award of any
court, administrative agency or governmental authority. 
 2.05 Acquiring for Investment. Such Noteholder is acquiring
such Noteholder’s Common Shares for his or its own account, for investment purposes only and not with a view towards or in connection with the public sale or distribution thereof in violation of the Securities Act of 1933, as amended (the
“Securities Act”). Such Noteholder will not, directly or indirectly, offer, sell, pledge or otherwise transfer his or its Common Shares, or any interest therein, except pursuant to transactions that are exempt from the registration
requirements of the Securities Act and/or sales registered under the Securities Act. Such Noteholder understands that such Noteholder must bear the economic risk of such Noteholder’s investment in such Noteholder’s Common Shares
indefinitely, unless such Noteholder’s Common Shares are registered pursuant to the Securities Act and any applicable state securities laws or an exemption from such registration is available, and that the Company has no present intention of
registering any such Common Shares. 
 2.06 Accredited Investor Status. Such Noteholder is: (a) an “accredited
investor” within the meaning of Rule 501 of Regulation D under the Securities Act; (b) experienced in making investments of the kind contemplated by this Agreement; and (c) capable, by reason of its business and financial experience,
of evaluating the relative merits and risks of an investment in the Common Shares. 
 2.07 Information. Such Noteholder
has had the opportunity to discuss the transactions contemplated hereby with the Company’s officers and has had the opportunity to obtain such information pertaining to the Company as such Noteholder has requested, including but not limited to,
filings made by the Company with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such Noteholder (a) can bear the economic risk of losing its entire investment in the Company and has adequate means
for providing for its current financial needs and contingencies and (b) has the financial acumen and sophistication to make an informed investment decision with respect to the transactions contemplated hereby and the Common Shares to be issued
to it hereunder, understands that such Common Shares are restricted and not freely tradable, and has had the opportunity to make inquiry to the Company regarding its operations and financial condition and has received answers to all of such
questions. Such Noteholder has reviewed the Company’s public filings with the SEC, including the risk factors set forth therein. 

  
 -3-

 2.08 Exemption of Offering. Such Noteholder understands that the Common Shares are
being issued by the Company in reliance upon an exemption from the registration requirements of the Securities Act, and applicable state securities laws, and that the Company is relying upon the accuracy of, and such Noteholder’s compliance
with, such Noteholder’s representations, warranties and covenants set forth in this Agreement to determine the availability of such exemption. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 The Company hereby represents and warrants to the Noteholders as follows: 

3.01 Organization; Good Standing. The Company is a corporation duly organized and existing in good standing under the laws of the
state of Delaware and has the requisite corporate power to own its properties and to carry on its business as now being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction
where the failure so to qualify or be in good standing could reasonably be expected to have a Material Adverse Effect. “Material Adverse Effect” means any effect which, individually or in the aggregate with all other effects, reasonably
would be expected to be materially adverse to the business, operations, properties, financial condition, or operating results of the Company taken as a whole, or on the transactions contemplated hereby. 

3.02 Corporate Power and Authority; Enforceability. The Company has the corporate power and authority to execute and deliver this
Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement constitutes the legal, valid, and binding obligation of the Company, and is enforceable against the Company in accordance with its
terms. 
 3.03 Approvals. Except for filings pursuant to applicable state and federal securities laws and as may be
required by the rules and regulations of The NASDAQ Stock Market, no consent, approval, authorization or order of any person, entity, court, administrative agency or governmental authority is required for the execution, delivery or performance of
this Agreement by the Company. 
 3.04 Conflicts. The execution, delivery and performance of this Agreement by the
Company will not (a) conflict with, or result in a breach of, or constitute a default under, or result in a violation of, any agreement or instrument to which the Company is a party or by which the property of the Company is bound or
(b) result in the violation of any applicable law or order, judgment, writ, injunction, decree or award of any court, administrative agency or governmental authority. 
 ARTICLE IV 
 TRANSFER RESTRICTIONS 

4.01 Transfer of Restricted Securities. Each Noteholder acknowledges that the Common Shares are restricted securities and are
transferable only pursuant to: (a) an effective registration statement under the Securities Act pertaining to such Common Shares; (b) Rule 144 of the SEC (or any similar rule or rules then in force) if such rule or rules are available; and
(c) any other legally available means of transfer. In connection with the transfer of any Common Shares (other than a transfer described in clauses (a) or (b) above), the holder thereof shall deliver written notice to the Company
describing in reasonable detail the transfer or proposed transfer. 

  
 -4-

 4.02 Restrictive Legend. Each Noteholder acknowledges and agrees that, upon issuance
pursuant to this Agreement, the Common Shares shall have endorsed thereon a legend in substantially the following form (and a stop-transfer order will be placed against transfer of the Common Shares until such legend has been removed): 

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE
SECURITIES LAWS OF ANY STATE, AND ARE BEING OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR SUCH OTHER LAWS.” 
 The certificate(s) representing the Common Shares will also bear any other legends required by applicable state securities laws. 
 4.03 Removal of Legend. The legend referred to in Section 4.02 (the “Legend”) shall be removed and the Company shall issue a certificate without such Legend to the holder of any
Common Shares upon which it is stamped, and a certificate for a Common Shares shall be originally issued without the Legend, if, (a) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for
opinions of counsel in comparable transactions and reasonably satisfactory to the Company and its counsel to the effect that a public sale or transfer of such Common Shares may be made without registration under the Securities Act pursuant to an
exemption from such registration requirements or (b) such Common Shares can be sold pursuant to Rule 144 and the holder provides the Company with reasonable assurances that the Common Shares can be so sold without restriction. The Company may
not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. Each Noteholder agrees to sell all Common Shares, including those represented by a
certificate(s) from which the Legend has been removed, or which were originally issued without the Legend, in compliance with an exemption from the registration requirements of the Securities Act. In the event the Legend is removed from any
certificate evidencing Common Shares or any Common Shares are issued without the Legend and the Common Shares are to be disposed of other than pursuant to a registration statement or pursuant to Rule 144, then prior to, and as a condition to, such
disposition such Common Shares shall be relegended as provided herein in connection with any disposition if the subsequent transfer thereof would be restricted under the Securities Act. 

4.04 Transfer Agent Instructions. The Company agrees that at such time as such Legend is no longer required under
Section 4.03, it will, no later than ten (10) days following the delivery by a Noteholder to the Company or the Company’s transfer agent of a certificate representing Common Shares issued with a Legend (such date, the “Legend
Removal Date”), deliver or cause to be delivered to such Noteholder a certificate representing such Common Shares that is free from such Legend, registered in the name of such Noteholder or its nominee. The Company covenants that no instruction
other than such instructions referred to in this ARTICLE IV, will be given by the Company to its transfer agent and that the Common Shares shall otherwise be freely transferable on the books and records of the Company. Nothing in this Section shall
affect in any way each Noteholder’s obligations and agreement set forth herein to resell the Common Shares in compliance with an exemption from the registration requirements of applicable securities laws. If (a) a Noteholder provides the
Company with an opinion of counsel, which opinion of counsel shall be in form, substance and scope customary for opinions of counsel in comparable transactions and reasonably satisfactory to the Company and its counsel [(the reasonable cost of which
shall be borne by the Company if, after six months, Rule 144 is not available in connection with such sale),] to the effect that the Common Shares to be sold or transferred may be sold or transferred pursuant to an exemption from registration or
(b) a Noteholder transfers Common Shares to an affiliate which is an accredited investor (within the meaning of Regulation D under the Securities Act) and which delivers to the Company in written form the same representations, warranties and
covenants made by the Noteholders hereunder or pursuant to Rule 144, the Company shall permit the transfer and promptly instruct its transfer agent to issue one or more certificates in such name and in such denomination as specified by such
Noteholder. 

  
 -5-

 ARTICLE V 
 CONDITIONS TO EACH NOTEHOLDERS OBLIGATION TO EXCHANGE 
 5.01 The obligation
of each Noteholder hereunder to exchange his or its Notes is subject to the satisfaction of each of the following conditions, provided that these conditions are for each Noteholder’s sole benefit and may be waived by such Noteholder at any time
in such Noteholder’s sole discretion: 
 (a) The closing of the transactions contemplated by the Investment Agreement shall
have been consummated; 
 (b) The Company shall have executed and delivered this Agreement; 

(c) All of the Notes, together with the outstanding principal amount and any accrued and unpaid interest payable with respect to such
Notes, shall be cancelled, terminated and exchanged for the Common Shares and Cash Consideration as set forth on Schedule I; 
 (d) The Company shall deliver the applicable Common Shares and Cash Consideration to such Noteholder against delivery by such Noteholder of his or its Note, free and clear of any and all security
interests or transfer, voting or other restrictions or encumbrances of any kind, except as imposed by applicable securities laws; and 
 (e) No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction
or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement. 

ARTICLE VI 

CONDITIONS TO THE COMPANY’S OBLIGATION TO EXCHANGE 
 6.01 The obligation of the Company hereunder to deliver Common Shares and Cash Consideration, as applicable, for Notes is subject to the satisfaction, with respect to each Noteholder, of each of the
following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion: 
 (a) The closing of the transactions contemplated by the Investment Agreement shall have been consummated; 

  
 -6-

 (b) Such Noteholder shall have executed and delivered this Agreement; 

(c) Such Noteholder shall have delivered his or its Note to the Company, free and clear of any and all security interests or transfer,
voting or other restrictions or Encumbrances of any kind; and 
 (d) No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which restricts
or prohibits the consummation of any of the transactions contemplated by this Agreement. 
 ARTICLE VII 

MISCELLANEOUS PROVISIONS 
 7.01 Survival of Representations; Entire Agreement. All representations and warranties made by the Parties pursuant to this Agreement shall survive the execution and delivery of this Agreement.
This Agreement and the Note Documents constitute the entire understanding between the Parties with respect to the subject matter contained herein and therein and supersede any prior or contemporaneous understandings and agreements among them
respecting such subject matter. Except as specifically set forth herein or therein, neither the Company nor any Noteholder makes any representation, warranty, covenant or undertaking with respect to such matters. 

7.02 Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the Delaware General
Corporation Law (in respect of matters of corporation law) and the laws of the State of Delaware (in respect of all other matters) applicable to contracts made and to be performed in the State of Delaware. The parties hereto irrevocably consent to
the jurisdiction of the United States federal courts and state courts located in the State of Delaware in any suit or proceeding based on or arising under this Agreement or the transactions contemplated hereby and irrevocably agree that all claims
in respect of such suit or proceeding may be determined in such courts. The Company and each Noteholder irrevocably waives the defense of an inconvenient forum to the maintenance of such suit or proceeding in such forum. The Parties hereto agree
that a final non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner. The Parties hereto irrevocably waive any right to a trial by
jury under applicable law 
 7.03 Release. Effective upon consummation of the Exchange, and in consideration of the
consummation of the transactions contemplated hereby and for other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, each Noteholder, for himself or itself, as applicable, and for his or its successors,
assigns, heirs, devisees, beneficiaries, estate, legatees, equityholders, stockholders, partners, members and affiliates does hereby remise, release and forever discharge the Company, the Purchaser (as such term is defined in the Investment
Agreement) and all of their respective successors, assigns, agents, legal representatives, officers, directors, employees, stockholders, managers, partners, members and other affiliates (all such persons and entities are hereinafter collectively
referred to as the “Released Parties”), of and from all debts, claims, demands, actions, causes of action, suits, dues, sums of money, accounts, reckonings, covenants, contracts, controversies, defaults, agreements, promises, obligations
and all liabilities of any kind or nature whatsoever (contingent or non-contingent and known or unknown), at law, in equity, or otherwise (collectively, “Claims”), against any of the Released Parties that such Noteholder ever had, now has,
or that such Noteholder or any of his or its successors, assigns, heirs, devisees, beneficiaries, estate or legatees hereafter can, shall or may have, from the beginning of the world to the time immediately following the Exchange Date.
Notwithstanding anything contained herein to the contrary, this Section 7.03 shall not be deemed a release by any Noteholder of any Claims that such Noteholder may have in respect of any Common Shares or Cash Consideration owed to such
Noteholder pursuant to this Agreement. 

  
 -7-

 7.04 Amendments; Counterparts. Except as set forth in Section 7.05 below, this
Agreement may be amended only by a written instrument duly executed by each of the Parties hereto. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all of
which counterparts taken together shall constitute but one and the same instrument. It shall not be necessary in making proof of this Agreement or any counterparts hereof to produce or account for any of the other counterparts. In order to
facilitate execution of this Agreement, this Agreement may be duly executed and delivered by facsimile or other electronic transmission. 
 7.05 Further Assurances. Each of the Noteholders agrees (a) to furnish upon request to the Company such further information, (b) to execute and deliver to the Company such other
instruments and documents, and (c) to do such other acts and things, all as the Company may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions contemplated by this Agreement. Each Party to this
Agreement shall use its best efforts to cause the Company to comply with all NASDAQ rules applicable to the transactions contemplated by this Agreement so as to enable, to the fullest extent possible, consummation of the transactions contemplated by
this Agreement without the requirement of obtaining stockholder approval thereof. In furtherance of the foregoing, each Party hereby agrees to the amendment of the terms of this Agreement, if such amendment is required to comply with applicable
NASDAQ rules in order to consummate the transactions contemplated by this Agreement without the requirement of obtaining stockholder approval thereof. Such amendment shall not require the written consent or acknowledgement of each Noteholder, but
each Noteholder shall be advised of such amendment in writing. 
 7.06 Arm’s Length Negotiations; Counsel for the
Company. Each Noteholder expressly represents and warrants to the Company that (a) before executing this Agreement, said Noteholder has fully informed himself or itself of the terms, contents, conditions and effects of this Agreement;
(b) said Noteholder has relied solely and completely upon his or its own judgment in executing this Agreement; (c) said Noteholder has had the opportunity to seek the advice of his or its own counsel and advisors before executing this
Agreement; (d) said Noteholder has acted voluntarily and of his or its own free will in executing this Agreement; (e) said Noteholder is not acting under duress, whether economic or physical, in executing this Agreement; (f) this
Agreement is the result of arm’s length negotiations conducted by and among the parties; and (g) said Noteholder acknowledges that the law firm of Lowndes, Drosdick, Doster, Kantor & Reed, P.A. has been retained by the Company to
prepare this Agreement as legal counsel for the Company, that Lowndes, Drosdick, Doster, Kantor & Reed, P.A. does not represent any Noteholder in connection with the preparation or execution of this Agreement, and that Lowndes, Drosdick,
Doster, Kantor & Reed, P.A. has not given any legal, investment or tax advice to any Noteholder regarding this Agreement. Lowndes, Drosdick, Doster, Kantor & Reed, P.A. is expressly intended as a beneficiary of the representations
and warranties of the Noteholders contained in this Section 7.06. 

  
 -8-

 7.07 Confidential Material Non-Public Information. The United States securities laws
prohibit any person who has received from an issuer material, non-public information, including the information that is the subject matter of this Agreement and the Note Documents, from purchasing or selling securities of the issuer or from
communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell securities. In addition, and without limiting the foregoing, each Noteholder will be subject
to the applicable provisions of the Exchange Act, and the rules and regulations thereunder, including, without limitation, the short-swing profit provisions and restrictions on trading while in possession of material non-public information, which
provisions may limit the timing of sales of any of the Company’s securities by Noteholders. The undersigned Noteholder agrees to keep and hold all such material, non-public information in strict confidence and trust and not to use or disclose
any such material, non-public information. 
 7.08 Notices. Any notice herein required or permitted to be given shall be
in writing and may be personally served or delivered by nationally-recognized overnight courier or by facsimile machine confirmed telecopy, and shall be deemed given and effective on the earliest of (a) the date of transmission if such notice
or communication is delivered by fax prior to 5:30 p.m. (Eastern Time) on a business day, (b) the next business day after the date of transmission if such notice or communication is delivered via fax on a day that is not a business day or later
than 5:30 p.m. (Eastern Time) on a business day, (c) the 2nd business day after the date of mailing if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to
be given. The addresses for such communications shall be: 
  

			
	If to the Company:	  	Nexxus Lighting, Inc.
		  	124 Floyd Smith Office Park Drive
		  	Suite 300
		  	Charlotte, North Carolina 28262
		  	Attention: Gary Langford, Chief Financial Officer
		  	Facsimile: 704-405-0422
		
	with a copy to:	  	Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
		  	215 North Eola Drive
		  	Orlando, FL 32801
		  	Attention: Suzan Abramson, Esq.
		  	Facsimile: 407-843-4444

 If to any Noteholder, to such address set forth under such Noteholder’s name on the Signature Page
executed by such Noteholder. Each party shall provide notice to the other parties of any change in address in the manner set forth in this Section 7.08. 
 7.09 Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. 

7.10 Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement in any other jurisdiction. 

  
 -9-

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date
first above written. 
  

			
	NEXXUS LIGHTING, INC.,
	a Delaware Corporation
		
	By:	 	 /s/ Gary R. Langford

		 	Gary R. Langford, Chief Financial Officer

  

			
	NOTEHOLDER:
	
	 /s/ Michael Brown

	Name of Noteholder
		
	By:	 	  

		
	Its:	 	  

	
	Address of Noteholder:
	
	  

	
	  

	
	  

 (SIGNATURE PAGE) 

  
 -10-

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date
first above written. 
  

			
	NEXXUS LIGHTING, INC.,
	a Delaware Corporation
		
	By:	 	 /s/ Gary R. Langford

		 	Gary R. Langford, Chief Financial Officer

  

			
	NOTEHOLDER:
	
	 /s/ Martin C. Bicknell

	Name of Noteholder
		
	By:	 	  

		
	Its:	 	  

	
	Address of Noteholder:
	
	  

	
	  

	
	  

 (SIGNATURE PAGE) 

  
 -10-

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date
first above written. 
  

			
	NEXXUS LIGHTING, INC.,
	a Delaware Corporation
		
	By:	 	 /s/ Gary R. Langford

		 	Gary R. Langford, Chief Financial Officer

  

			
	NOTEHOLDER:
	
	 XXL Investments, LLC

	Name of Noteholder
		
	By:	 	 /s/ Kirk Lambright

	
	Its: Manager
	
	Address of Noteholder:
	
	  

	
	  

	
	  

 (SIGNATURE PAGE) 

  
 -10-

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date
first above written. 
  

			
	NEXXUS LIGHTING, INC.,
	a Delaware Corporation
		
	By:	 	 /s/ Gary R. Langford

		 	Gary R. Langford, Chief Financial Officer

  

			
	NOTEHOLDER:
	
	 Bicknell Family Holding Company, LLC

	 Name of Noteholder

		
	 By:
	 	 /s/ Martin C. Bicknell

	
	 Its: Manager

	
	 Address of Noteholder:

	
	  

	
	  

	
	  

 (SIGNATURE PAGE) 

  
 -10-

 SCHEDULE 1 

TO 

TERMINATION AND EXCHANGE AGREEMENT 
  

													
	 Noteholder Name
	  	Principal
Amount of Note	 	  	Common
Shares	 	  	Cash
Consideration	 
				
	 Michael Brown
	  	$	750,000.00	  	  	 	312,500	  	  	$	275,000.00	  
				
	 XXL Investments, LLC
	  	$	150,000.00	  	  	 	62,500	  	  	$	55,000.00	  
				
	 Bicknell Family Holding Company, LLC
	  	$	1,350,000.00	  	  	 	562,500	  	  	$	495,000.00	  
				
	 Martin C. Bicknell
	  	$	150,000.00	  	  	 	62,500	  	  	$	55,000.00	  
				
	 Total:
	  	$	2,400,000.00	  	  	 	1,000,000	  	  	$	880,000.00	  

  
 -11-

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