Document:

ex_135941.htm

Exhibit 10.1

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR THE REDACTED PORTIONS OF THIS EXHIBIT. THE REDACTIONS ARE INDICATED WITH “[**]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.

 

 

 

 

 

 

 

 

RENEWABLE ISOOCTANE

PURCHASE AND SALE AGREEMENT

 

dated February 21, 2019

 

by and between 

 

GEVO, INC.

 

and

 

HCS GROUP GmbH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

 

 

	 	 	
			Page

			
	
			Article 1 Definitions

				
			1

			
	
			Section 1.1

				
			Definitions

				
			1

			
	
			Section 1.2

				
			Interpretation

				
			9

			
	
			Section 1.3

				
			Order of Precedence

				
			9

			
	
			Article 2 Term; Early Termination

				
			9

			
	
			Section 2.1

				
			Term

				
			9

			
	
			Section 2.2

				
			Early Termination

				
			9

			
	
			Article 3 Purchase and Sale of Renewable Isooctane

				
			11

			
	
			Section 3.1

				
			Purchase and Sale of Renewable Isooctane

				
			11

			
	
			Section 3.2

				
			Take or Pay

				
			11

			
	
			Section 3.3

				
			Minimum Annual Contract Quantity

				
			11

			
	
			Section 3.4

				
			Maximum Annual Contract Quantity

				
			12

			
	
			Section 3.5

				
			Credit Support

				
			12

			
	
			Section 3.6

				
			Exclusivity

				
			12

			
	
			Section 3.7

				
			Marketing Rights

				
			13

			
	
			Section 3.8

				
			Additional Buyer Entities

				
			13

			
	
			Section 3.9

				
			Sustainability Certification

				
			13

			
	
			Section 3.10

				
			REACH Regulation

				
			14

			
	
			Section 3.11

				
			In-Kind Substitution

				
			14

			
	
			Article 4 Measurement

				
			14

			
	
			Section 4.1

				
			Measurement

				
			14

			
	
			Section 4.2

				
			Volume Disputes

				
			15

			
	
			Section 4.3

				
			Maintenance of Meters

				
			15

			
	
			Article 5 Quality

				
			15

			
	
			Section 5.1

				
			Warranty of Quality

				
			15

			
	
			Section 5.2

				
			Changes to Specifications

				
			15

			
	
			Section 5.3

				
			Verification of Quality; Precautionary Samples; Rejection

				
			16

			
	
			Section 5.4

				
			Records; Right to Audit

				
			17

			
	
			Section 5.5

				
			Disclaimer

				
			17

			

 

i

 

 

	
			Article 6 Delivery

				
			17

			
	
			Section 6.1

				
			Delivery of Renewable Isooctane to Buyer

				
			17

			
	
			Section 6.2

				
			Obligations of Buyer and Seller re Delivery

				
			17

			
	
			Section 6.3

				
			Production Estimates; Demand Forecast

				
			18

			
	
			Section 6.4

				
			Delivery Schedule

				
			19

			
	
			Article 7 Title and Risk of Loss

				
			19

			
	
			Section 7.1

				
			Title, Custody and Risk of Loss

				
			19

			
	
			Section 7.2

				
			Warranty of Title

				
			19

			
	
			Article 8 Consideration

				
			20

			
	
			Section 8.1

				
			Price

				
			20

			
	
			Section 8.2

				
			Taxes

				
			21

			
	
			Article 9 Invoicing and Payment

				
			21

			
	
			Section 9.1

				
			Invoicing

				
			21

			
	
			Section 9.2

				
			Payment

				
			21

			
	
			Section 9.3

				
			Disputed Amounts

				
			22

			
	
			Section 9.4

				
			Interest

				
			22

			
	
			Article 10 Representations

				
			22

			
	
			Section 10.1

				
			Seller’s Representations

				
			22

			
	
			Section 10.2

				
			Buyer Representations

				
			23

			
	
			Article 11 Insurance

				
			24

			
	
			Section 11.1

				
			Required Insurance

				
			24

			
	
			Section 11.2

				
			Requirements of Insurance

				
			25

			
	
			Article 12 Force Majeure

				
			25

			
	
			Section 12.1

				
			Force Majeure Generally

				
			25

			
	
			Section 12.2

				
			Force Majeure Events

				
			25

			
	
			Section 12.3

				
			Certain Obligations Not Excused

				
			26

			
	
			Section 12.4

				
			Procedures and Timing

				
			26

			
	
			Section 12.5

				
			Apportionment and Cancelation

				
			26

			
	
			Article 13 Compliance with Laws and Regulations

				
			27

			
	
			Section 13.1

				
			Compliance with Laws and Regulations

				
			27

			
	
			Section 13.2

				
			Material Safety Compliance

				
			27

			
	
			Article 14 Indemnification

				
			27

			
	
			Section 14.1

				
			Indemnity

				
			27

			
	
			Section 14.2

				
			Seller’s Intellectual Property Infringement Indemnity

				
			27

			
	
			Section 14.3

				
			Buyer’s Intellectual Property Infringement Indemnity

				
			29

			
	
			Section 14.4

				
			Indemnification Procedures

				
			29

			

 

ii

 

 

	
			Article 15 Defaults and Remedies

				
			30

			
	
			Section 15.1

				
			Events of Default

				
			30

			
	
			Section 15.2

				
			Notice of Event of Default

				
			31

			
	
			Section 15.3

				
			Remedies

				
			31

			
	
			Section 15.4

				
			Failure to Deliver Remedy

				
			31

			
	
			Article 16 Limitations of Liability

				
			32

			
	
			Section 16.1

				
			Limitation on Duties

				
			32

			
	
			Section 16.2

				
			Limitation on Remedies

				
			32

			
	
			Section 16.3

				
			Disclaimer of Certain Damages

				
			32

			
	
			Article 17 Dispute Resolution

				
			33

			
	
			Section 17.1

				
			Dispute Resolution Generally

				
			33

			
	
			Section 17.2

				
			Friendly Consultation

				
			33

			
	
			Section 17.3

				
			Binding Arbitration

				
			33

			
	
			Article 18 General Provisions

				
			35

			
	
			Section 18.1

				
			Applicable Law

				
			35

			
	
			Section 18.2

				
			Waiver of Jury Trial

				
			35

			
	
			Section 18.3

				
			Severability

				
			35

			
	
			Section 18.4

				
			Waiver

				
			35

			
	
			Section 18.5

				
			Assignment

				
			36

			
	
			Section 18.6

				
			Notices

				
			36

			
	
			Section 18.7

				
			Conflicts of Interest

				
			38

			
	
			Section 18.8

				
			Entire Agreement/Modification

				
			38

			
	
			Section 18.9

				
			Status of the Parties

				
			38

			
	
			Section 18.10

				
			Confidentiality

				
			38

			
	
			Section 18.11

				
			Publicity and Announcements

				
			39

			
	
			Section 18.12

				
			Support of Financing Efforts

				
			40

			
	
			Section 18.13

				
			Buyer’s Financial Statements

				
			40

			
	
			Section 18.14

				
			Further Assurances

				
			40

			
	
			Section 18.15

				
			Survival

				
			40

			
	
			Section 18.16

				
			Counterparts

				
			40

			

 

 

Attachments

 

Attachment A          Renewable Isooctane Specifications

Attachment B          Form of Joinder Agreement     

 

iii

 

 

RENEWABLE ISOOCTANE

PURCHASE AND SALE AGREEMENT

 

This RENEWABLE ISOOCTANE PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of this 21st day of February, 2019 (“Execution Date”) by and between GEVO, INC., a Delaware corporation having its principal office at 345 Inverness Drive South, Building C, Suite 310, Englewood, Colorado 80112 (“Seller”) and HCS GROUP GmbH, a German corporation having its principal office at Hamburg-Mitte, Schlengendeich 17, 21107 Hamburg, Germany (“Buyer”). Seller and Buyer may be referred to individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

A.     Buyer is engaged in the research, development, production, and distribution of alternative specially adapted fuels and seeks a supply of Renewable Isooctane (as defined below) for use as an additive in certain of such fuels;

 

B.     Seller has a demonstration project in Silsbee, TX capable of producing up to 50,000 gallons per year of Renewable Isooctane (the “Existing Project”);

 

C.     Seller is developing an interim skid-mounted production solution that is expected to be capable of producing up to 500,000 gallons per year of Renewable Isooctane, which is expected to be located adjacent to the existing facility owned by Seller’s Affiliate at 502 South Walnut Avenue, Luverne, Minnesota 56156 or at such other locations as may be selected by Seller (the “Interim Project”); and

 

C.     Seller is also developing a new project that is expected to be capable of producing up to 5,000,000 gallons per year of Renewable Isooctane, which project is expected to be located adjacent to the existing facility owned by Seller’s Affiliate at 502 South Walnut Avenue, Luverne, Minnesota 56156 or at such other locations as may be selected by Seller (the “Expansion Project” and, together with the Existing Project and the Interim Project, the “Production Facilities”); and

 

D.     Seller desires to sell and deliver Renewable Isooctane to Buyer, and Buyer or its Subsidiaries desire to purchase and receive such Renewable Isooctane from Seller, all pursuant to the terms and conditions of this Agreement.

 

NOW THEREFORE, in consideration of the mutual agreements and covenants set forth in this Agreement and the mutual benefits to be derived by the Parties, Seller and Buyer agree as follows:

 

Article 1

Definitions

 

Section 1.1     Definitions. Except where otherwise indicated, capitalized terms used in this Agreement shall have the definitions set forth in this Section 1.1:

 

“Additional Buyer” has the meaning specified in Section 3.8.

 

1

 

 

“Affiliate” means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with such Person; for purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) means the direct or indirect ownership of fifty percent (50%) or more of the voting rights in a Person or the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or otherwise.

 

“Agreement” has the meaning set forth in the Preamble. The Agreement consists of (i) Primary Terms, and (ii) the documents identified as Attachments (and the documents listed or referenced in such Attachments), as any of the foregoing may be amended, modified or supplemented from time to time pursuant hereto.

 

“API MPMS” means the American Petroleum Institute Manual of Petroleum Measurement Standards.

 

“Applicable Law” means, in relation to matters covered by this Agreement, all applicable laws, statutes, rules, regulations, ordinances, codes, standards and rules of common law, and judgments, decisions, interpretations, orders, directives, injunctions, writs, decrees, stipulations, or awards of any applicable Governmental Authority or duly authorized official, court or arbitrator thereof, including all Governmental Authorizations, in each case, now existing or which may be enacted or issued after the Execution Date.

 

“As Available Basis” means that Seller has Renewable Isooctane available for sale from the Production Facilities for supply to Buyer.

 

“ASTM” means ASTM International, formerly known as the American Society for Testing and Materials.

 

“Bankruptcy Event” means, with respect to any Person: (a) such Person institutes a voluntary case, files a petition or consents or otherwise institutes any similar proceedings seeking liquidation, reorganization, dissolution, winding-up, to be adjudicated a bankrupt or for any other relief under the Bankruptcy Law, or consents to the institution of an involuntary case thereunder against it; (b) such Person makes a general assignment for the benefit of creditors; (c) such Person applies under Bankruptcy Law for, or by its consent or acquiescence there shall be an appointment of, a receiver, liquidator, sequestrator, trustee or other officer with similar powers with regard to such Person or to any material part of such Person’s property; (d) such Person admits in writing its inability to pay its debts generally as they become due; (e) an involuntary case or any similar proceeding shall be commenced under the Bankruptcy Law against such Person and (A) the petition commencing the involuntary case or similar proceeding is not timely challenged, (B) the petition commencing the involuntary case or similar proceeding is not dismissed within sixty (60) Days of its filing, (C) an interim trustee is appointed to take possession of all or a portion of the property, and/or to operate all or any part of the business of such Person and such appointment is not vacated within sixty (60) Days of such appointment or (D) an order for relief shall have been issued or entered therein; or (f) a court adjudges such Person to be bankrupt or makes an order requiring the liquidation, dissolution or winding up of such Person.

 

2

 

 

“Bankruptcy Law” means Title 11 of the United State Code and any other state or federal insolvency, reorganization, moratorium or similar law for the relief of debtors.

 

“Bio-based Isobutanol” means any isobutanol that is produced from bio-mass and is not derived from petroleum products.

 

“Business Day” means any Day (other than Saturdays, Sundays and national holidays in the United States of America) on which banks are normally open to conduct business in the United States of America.

 

“Buyer” has the meaning set forth in the Preamble but shall include those Subsidiaries of Buyer who become Additional Buyers in accordance with Section 3.8.

 

“Buyer Indemnitee” means Buyer, Buyer’s Affiliates, and each of their respective officers, directors, managers, members, employees, agents, advisors, representatives, successors and assigns.

 

“Buyer Taxes” has the meaning specified in Section 8.2.

 

“Carrier” means a carrier hired by Buyer (and approved by Seller in advance) when arranging transportation of Renewable Isooctane from the Delivery Point.

 

“Claim” means any claim, action, dispute, proceeding, demand, or right of action, whether in law or in equity, of every kind and character.

 

“Claim Notice” has the meaning set forth in Section 14.4(a).

 

“Commercial Operations Date” means the date on which Seller determines that the Expansion Project is capable of producing product conforming to specification and in quantities in line with the design capacity thereof as necessary to enable Seller to perform its obligations under this Agreement.

 

“Confidential Information” means any information disclosed by either Party to the other Party, directly or indirectly, in writing, orally, or by inspection of tangible objects (including documents, prototypes, samples, plant, and equipment), which is designated as “Confidential,” “Proprietary,” or some similar designation, or that should reasonably be understood to be confidential from the context of disclosure. Confidential Information will not, however, include any information that the receiving Party can show by competent evidence: (a) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing Party; (b) becomes publicly known and made generally available after disclosure by the disclosing Party to the receiving party through no action or inaction of the receiving Party; (c) is already in the possession of the receiving Party at the time of disclosure by the disclosing party, as shown by the receiving Party’s files and records; (d) is obtained by the receiving Party from a Third Party without a breach of the Third Party’s obligations of confidentiality; or (e) is independently developed by the receiving Party without use of or reference to the disclosing Party’s Confidential Information.

 

3

 

 

“Day” shall mean a calendar day unless the term Business Days is used.

 

“Default Notice” has the meaning set forth in Section 15.2.

 

“Defaulting Party” has the meaning set forth in Section 15.1.

 

“Delivery Point” has the meaning set forth in Section 6.1.

 

“Delivery Schedule” has the meaning set forth in Section 6.4.

 

“Delivery Term” has the meaning set forth in Section 2.1.

 

“Demand Forecast” has the meaning set forth in Section 6.3.

 

“Dispute” has the meaning set forth in Section 17.1.

 

“Dollar” means one United States dollar.

 

“Event of Default” has the meaning set forth in Section 15.1.

 

“Execution Date” has the meaning set forth in the Preamble.

 

“Existing Project” has the meaning set forth in the Recitals.

 

“Expansion Project” has the meaning set forth in the Recitals.

 

“Financial Closing” means the earlier of: (i) the date upon which funds are available for distribution by the Lenders to Seller under the initial Financing for the construction of the Expansion Project; and (ii) the date upon which Seller has issued a notice to proceed to commence with construction of the Expansion Project.

 

“Financing” means each construction, interim, long-term debt or equity financing, refinancing, and/or credit support arrangement related to all or a portion of the development, construction, or operation of the Expansion Project.

 

“Force Majeure Event” has the meaning set forth in Section 12.1.

 

“Gallon” means a United States liquid gallon of 231 cubic inches when corrected to 60 degrees Fahrenheit

 

4

 

 

“Governmental Authority” means any federal, state, county, municipal, regional, native or tribal authority of the United States, any state thereof or the District of Columbia, or any other entity of a similar nature, exercising any executive, legislative, judicial, regulatory or administrative function of government.

 

“Governmental Authorizations” means, collectively, all permits, consents, decisions, licenses, approvals, certificates, confirmations or exemptions from, and all applications and notices filed with or required by, any Governmental Authority that are necessary for development, construction, ownership and operation of any of the Production Facilities, the purchase and sale of Renewable Isooctane pursuant to this Agreement, or the performance of any other obligation of either Party pursuant to this Agreement.

 

“Hazardous Substances” means any chemical, substance, medical or other waste, living organism or combination thereof which is or may be hazardous to the environment or human or animal health or safety due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, carcinogenicity, mutagenicity, phytotoxicity, infectiousness or other harmful or potentially harmful properties or effects. “Hazardous Substances” shall include without limitation, petroleum hydrocarbons, including crude oil or any fraction thereof, asbestos, radon, polychlorinated biphenyls (PCBs), methane and all substances which now or in the future may be defined as “hazardous substances,” “hazardous wastes,” “extremely hazardous wastes,” “hazardous materials” or “toxic substances,” or which are otherwise listed, defined or regulated in any manner pursuant to any Applicable Law pertaining to protection of the environment or human or animal health or safety.

 

“Indemnified Party” has the meaning set forth in Section 14.4.

 

“Indemnifying Party” has the meaning set forth in Section 14.4.

 

“Intellectual Property” means recognized protectable intellectual property of a Person, such as patents, copyrights, corporate names, trade names, trademarks, trade dress, service marks, applications for any of the foregoing, software, firmware, trade secrets, mask works, industrial design rights, rights of priority, know how, design flows, methodologies and any and all intangible protectable proprietary information that is legally recognized.

 

“Interim Project” has the meaning set forth in the Recitals.

 

“Interim Project Operations Date” means the date on which Seller Determines that the Interim Project is capable of producing product conforming to specification and in quantities in line with the design capacity thereof as necessary to enable Seller to perform its obligations under this Agreement.

 

“Invoice” has the meaning set forth in Section 9.1.

 

“ISCC” means International Sustainability and Carbon Certification.

 

5

 

 

“Lender” means any Person or agent or trustee of such Person who agrees to provide Financing for the Expansion Project.

 

“Losses” all liabilities, losses, damages, fines, penalties, judgments, demands, and costs and expenses of any kind or nature, including reasonable attorneys’ and experts’ fees and expenses incurred in litigation or dispute resolution.

 

“Minimum Annual Contract Quantity” means the minimum quantity of Renewable Isooctane that Buyer is obligated to take and pay for and Seller is obligate to supply during each year of the Delivery Term, as set forth in Section 3.3.

 

“Maximum Annual Contract Quantity” means the maximum quantity of Renewable Isooctane that Seller will offer to Buyer and that Buyer may buy at his own discretion during each year of the Delivery Term, as set forth in Section 3.4.

 

“Mitigation Sale” has the meaning set forth in Section 3.2.

 

“Mitigation Sale Credit” has the meaning set forth in Section 3.2.

 

“Moratorium Period” has the meaning set forth in Section 15.2.

 

“Non-Defaulting Party” has the meaning set forth in Section 15.1.

 

“Notice to Proceed Date” means the date on which Seller issues a notice to proceed with respect to the construction of the Expansion Project.

 

“Party” or “Parties” has the meaning set forth in the Preamble.

 

“Person” means an individual, partnership, corporation, limited liability company, company, business trust, joint stock company, trust, unincorporated association, joint venture, Government Authority or other entity of whatever nature.

 

“Price” has the meaning set forth in Section 8.1.

 

“Primary Terms” means the terms and provisions set forth in Article 1 through Article 18 of this Agreement.

 

“Prime Rate” means for any Day the rate of interest from time to time reported by The Wall Street Journal as the base rate on corporate loans posted by at least seventy-five percent (75%) of the nation’s thirty (30) largest banks for such date, or if such rate ceases to be published, such successor rate as mutually agreed between the Parties that approximates the same interest level.

 

“Production Estimate” has the meaning set forth in Section 6.3.

 

“Production Facilities” has the meaning set forth in the Recitals.

 

6

 

 

“REACH Regulation” means Regulation (EC) No 1907/2006 of the European Parliament and the Council of 18 December 2006 concerning the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH).

 

“Release” means the release, spill, leak, pump, injection, deposit, discharge, dispersal, or improper disposal of a Hazardous Substance.

 

“Renewable Energy Directive” means Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, as may be modified or replaced in a manner consistent with the Proposal for a Directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast) COM/2016/0767 final/2 - 2016/0382 (COD), repealing Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources.

 

“Renewable Isooctane” means isooctane that is derived from Bio-based Isobutanol and comprised of a family of renewable C8 compounds that includes 2,2,3-trimethylpentane, 2,2,4-trimethylpentane, 2,3,3-trimethylpentane, and 2,3,4-trimethylpentane.

 

“Reserved Amount” has the meaning set forth in Section 3.6.

 

“RSB” means the Roundtable on Sustainable Biomaterials.

 

“Seller” has the meaning set forth in the Preamble.

 

“Seller Indemnitee” means Seller, Seller’s Affiliates, and each of their respective officers, directors, managers, members, employees, agents, advisors, representatives, successors and assigns.

 

“Seller Taxes” has the meaning set forth in Section 8.2.

 

“Shortfall Quantity” means an amount equal to the difference between the applicable Minimum Annual Contract Quantity and the actual quantity of Renewable Isooctane purchased by Buyer.

 

“Specifications” has the meaning set forth in Attachment A, as modified from time to time by the Parties in accordance with Section 5.2.

 

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or business entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (b) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity (other than a corporation) if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control any managing member, general partner or analogous controlling Person of such limited liability company, partnership, association or other business entity.

 

7

 

 

“Sustainability Certification” means a certification demonstrating compliance with the sustainability criteria pursuant the Renewable Energy Directive, issued by a voluntary national or international certification scheme recognized by the European Commission, including, but not limited to, ISCC or RSB.

 

“Target Commercial Operations Date” has the meaning set forth in Section 2.2.

 

“Target Interim Operations Date” has the meaning set forth in Section 2.2.

 

“Target NTP Date” has the meaning set forth in Section 2.2.

 

“Tax” or “Taxes”   means all federal, state, local, and foreign net income, gross income, profits, franchise, margin, sales, use, value added, ad valorem, property, severance, production, excise, stamp, documentary, real property transfer or gain, gross receipts, goods and services, registration, capital, transfer, motor fuel, special fuel, gasoline, petroleum products, bio-fuel, petroleum products delivery, motor fuel transporter, diesel, oil company franchise, environmental, spill, or withholding taxes or other assessments, duties, fees or charges imposed by any Governmental Authority, including any interest, penalties, or additions to tax that may be imposed with respect thereto.

 

“Term” has the meaning set forth in Section 2.1.

 

“Territory” means all member countries comprising the European Union including United Kingdom (independent of an exit).

 

“Third Party” means any Person other than a Party or an Affiliate of a Party.

 

“Transport Container” means any Transport Container, rail car, marine vessel, storage vessel, or other mechanism owned, leased, hired, or otherwise arranged for by Buyer, by which Renewable Isooctane is transported from the Delivery Point.

 

8

 

 

Section 1.2     Interpretation. Unless the context of the Agreement otherwise requires: (a) the headings contained in the Agreement are used solely for convenience and do not constitute a part of the Agreement between the Parties, nor should they be used to aid in any manner to construe or interpret the Agreement; (b) the gender of all words used herein shall include the masculine, feminine and neuter and the number of all words shall include the singular and plural words; (c) the terms “hereof”, “herein” “hereto” and similar words refer to this entire Agreement and not to any particular Article, Section, Appendix, Attachment, Exhibit or any other subdivision of the Agreement; (d) references to “Article”, “Section”, “Appendix”, “Attachment” or “Exhibit” are to the Agreement unless specified otherwise; (e) reference to “the Agreement”, an Appendix, Attachment, or Exhibit hereto or any other agreement or document shall be construed as a reference to such agreement or document as the same may be amended, modified, supplemented or restated, and shall include a reference to any document which amends, modifies, supplements or restates, or is entered into, made or given pursuant to or in accordance with its terms; (f) references to any law, statute, rule, regulation, notification or statutory provision (including Applicable Laws and Governmental Authorizations) shall be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or reenacted; (g) references to any Person or Party shall be construed as a reference to such Person’s or Party’s successors and permitted assigns; and (h) references to “includes,” “including” and similar phrases shall mean “including, without limitation.” The Parties collectively have prepared the Agreement, and none of the provisions hereof shall be construed against one Party on the ground that such Party is the author of the Agreement or any part hereof.

 

Section 1.3     Order of Precedence. In case of conflict between the Primary Terms, amendments to the Agreement and the Appendices, the order of precedence for interpretation shall be: (a) amendments to this Agreement, with those of a later date having precedence over those of an earlier date; (b) these Terms; and (c) Appendices. In the event of a conflict among, or within, any provisions within any one of the levels set forth in the foregoing order of precedence, the more stringent or higher quality requirements of such provisions which are applicable to the obligations of Seller shall take precedence over the less stringent or lesser quality requirements applicable thereto.

 

Article 2

Term; Early Termination

 

Section 2.1     Term. The term of this Agreement shall commence on the Execution Date and shall expire on the tenth (10th) anniversary of the Commercial Operations Date (the “Term”). The “Delivery Term” shall commence on January 1, 2019 and shall expire concurrently with the expiration of the Term.

 

Section 2.2     Early Termination.

 

(a)     With respect to the Expansion Project, Seller shall use reasonable efforts to cause the Notice to Proceed Date to occur on or before the second (2nd) anniversary of the Execution Date (as may be extended hereunder, the “Target NTP Date”). The Target NTP Date shall be subject to extension on a day-for-day basis for each Day that the achievement of the Notice to Proceed Date is delayed by a Force Majeure Event or by acts or omissions of Buyer up to a maximum of 120 days. If the Notice to Proceed Date has not occurred by the Target NTP Date (as may be extended), then for so long as the Notice to Proceed Date has not occurred, either Party shall be permitted to terminate this Agreement by furnishing the other Party with written notice of termination specifying a date of termination of this Agreement, which termination date shall be no earlier than sixty (60) days after the date of such notice; provided, however, that (i) the right to so terminate this Agreement shall expire if the Notice to Proceed Date occurs and (ii) any notice of such termination previously issued shall be automatically deemed withdrawn and of no force or effect, if the Notice to Proceed Date occurs prior to the termination date specified in such notice of termination.

 

9

 

 

(b)     With respect to the Interim Project, Seller shall use reasonable efforts to cause the Interim Operations Date to occur on or before the second (2nd) anniversary of the Execution Date (as may be extended hereunder, the “Target Interim Operations Date”). The Target Interim Operations Date shall be subject to extension on a day-for-day basis for each Day that the achievement of the Interim Operations Date is delayed by a Force Majeure Event or by acts or omissions of Buyer up to a maximum of 120 days. If the Interim Operations Date has not occurred by the Target Interim Operations Date (as may be extended), then for so long as the Interim Operations Date has not occurred, either Party shall be permitted to terminate this Agreement by furnishing the other Party with written notice of termination specifying a date of termination of this Agreement, which termination date shall be no earlier than sixty (60) days after the date of such notice; provided, however, that (i) the right to so terminate this Agreement shall expire if the Interim Operations Date occurs, and (ii) any notice of such termination previously issued shall be automatically deemed withdrawn and of no force or effect, if the Interim Operations Date occurs prior to the termination date specified in such notice of termination.

 

(c)     With respect to the Expansion Project, Seller shall use reasonable efforts to cause the Commercial Operations Date to occur on or before the fifth (5th) anniversary of the Execution Date (as may be extended hereunder, the “Target Commercial Operations Date”). The Target Commercial Operations Date shall be subject to extension on a day-for-day basis for each Day that the achievement of the Commercial Operations Date is delayed by a Force Majeure Event or by acts or omissions of Buyer up to a maximum of 120 days. If the Commercial Operations Date has not occurred by the Target Commercial Operations Date (as may be extended), then for so long as the Commercial Operations Date has not occurred, either Party shall be permitted to terminate this Agreement by furnishing the other Party with written notice of termination specifying a date of termination of this Agreement, which termination date shall be no earlier than sixty (60) days after the date of such notice; provided, however, that (i) the right to so terminate this Agreement shall expire if the Commercial Operations Date occurs and (ii) any notice of such termination previously issued shall be automatically deemed withdrawn and of no force or effect, if the Commercial Operations Date occurs prior to the termination date specified in such notice of termination.

 

(d)     In the event of a termination pursuant to this Section 2.2, the Parties shall be released and discharged from any obligations arising or accruing hereunder from and after the date of such termination and shall not incur any additional liability to each other as a result of such termination; provided that, for sake of clarity, such termination shall not discharge or relieve either Party from any obligation that has accrued prior to such termination.

 

10

 

 

Article 3

Purchase and Sale of Renewable Isooctane

 

Section 3.1     Purchase and Sale of Renewable Isooctane. Subject to the terms and conditions in this Agreement, during the Delivery Term Seller shall sell and deliver, or cause to be delivered, and Buyer shall purchase and receive, or cause to be received, Renewable Isooctane at the Delivery Point on an As Available Basis in amounts up to the applicable Maximum Annual Contract Quantity. For sake of clarity, Seller’s obligations in respect of the sale of Renewable Isooctane hereunder are in all cases on an As Available Basis, and Seller shall have no liability for any failure to produce Renewable Isooctane for delivery hereunder for any reason with exception of the then-applicable Minimum Annual Contract Quantity.

 

Section 3.2     Take or Pay. For clarification and not in limitation of the foregoing, the obligation of Buyer to purchase the Minimum Annual Contract Quantity of Renewable Isooctane hereunder during the Delivery Term is a “take or pay” obligation and fully binding upon and enforceable against Buyer throughout the Delivery Term, all as more further described in Section 3.3, subject, however, to Section 3.11, if applicable. If Buyer fails to purchase the applicable Minimum Annual Contract Quantity in a certain year, Buyer shall pay to Seller the applicable purchase price for the Shortfall Quantity, provided that if, as a result of Buyer’s failure Seller has not actually incurred the cost of production for all or a portion of the Shortfall Quantity, then Buyer’s payment obligation under this Section 3.2 shall be reduced by the amount of those variable costs of production that Seller did not incur with respect to the portion of the Shortfall Quantity not produced. If Seller sells or causes to be sold the Shortfall Quantity or any portion thereof to a Third Party (a “Mitigation Sale”), Seller shall credit Buyer an amount (the “Mitigation Sale Credit”) equal to: (x) the proceeds of the Mitigation Sale, less (y) any actual and reasonable incremental costs incurred by Seller as a result of the Mitigation Sale; provided, however, that the Mitigation Sale Credit shall not exceed the amount paid by Buyer for such Shortfall Quantity. If Seller fails to supply the applicable Minimum Annual Contract Quantity in a certain year, Seller shall compensate Buyer as set forth in Section 15.4.

 

Section 3.3     Minimum Annual Contract Quantity. The Minimum Annual Contract Quantity shall be adjusted dependent upon which of the Production Facilities is operational and for how long such facility(ies) have been operating, as set forth below, with the annual measurement period being reset upon each such adjustment.

 

	
			Minimum Annual 

			Contract Quantity

				
			Period of Applicability

			
	
			[**] gallons per year

				
			January 1, 2019 to each anniversary thereof, and annually thereafter until the earlier of (i) the Interim Project Operations Date and (ii) the Commercial Operations Date.

			
	
			[**] gallons per year

				
			Interim Operations Date until the earlier of (i) the first anniversary of the Interim Operations Date and (ii) the Commercial Operations Date

			
	
			[**] gallons per year

				
			Annually, commencing on the first anniversary of the Interim Operations Date until the Commercial Operations Date

			
	
			1,000,000 gallons per year

				
			Commercial Operations Date until the first anniversary of the Commercial Operations Date

			
	
			2,000,000 gallons per year

				
			Annually, commencing on the first anniversary of the Commercial Operations Date until the expiration of the Delivery Term

			

 

 

 

[**] - Indicates certain information has been redacted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the redacted portions.

 

11

 

 

By way of example, during the third year of operations of the Interim Project, the Minimum Annual Contract Quantity shall be [**] gallons per year. However, if during the third year of operations of the Interim Project, the Commercial Operations Date occurs, then the Minimum Annual Contract Quantity shall be reset as of (and for the year following) the Commercial Operations Date to 1,000,000 gallons per year as set forth above, and for the partial year of operations of the Interim Project no Minimum Annual Contract Quantity shall apply. The foregoing shall not, however, limit the Parties respective obligations to seek to schedule deliveries in a ratable fashion in accordance with Section 6.3. Seller shall be permitted to make deliveries from any of the Production Facilities in order to satisfy the applicable Minimum Annual Contract Quantity then in effect.

 

Section 3.4     Maximum Annual Contract Quantity. The Maximum Annual Contract Quantity shall be adjusted dependent upon which of the Production Facilities is operational and for how long they such facility(ies) have been operating, as set forth below, with the annual measurement period being reset upon each such adjustment.

 

	
			Maximum Annual

			Contract Quantity

				
			Period of Applicability

			
	
			[**] gallons per year

				
			January 1, 2019 to each anniversary thereof, and annually thereafter until the earlier of (i) the Interim Project Operations Date and (ii) the Commercial Operations Date.

			
	
			[**] gallons per year

				
			Interim Operations Date until the earlier of (i) the first anniversary of the Interim Operations Date and (ii) the Commercial Operations Date

			
	
			[**] gallons per year

				
			Annually, commencing on the first anniversary of the Interim Operations Date until the Commercial Operations Date

			
	
			1,500,000 gallons per year

				
			Commercial Operations Date until the first anniversary of the Commercial Operations Date

			
	
			4,000,000 gallons per year

				
			Annually, commencing on the first anniversary of the Commercial Operations Date until the expiration of the Delivery Term

			

 

 

By way of example, during the third year of operations of the Interim Project, the Maximum Annual Contract Quantity shall be [**] gallons per year. However, if during the third year of operations of the Interim Project, the Commercial Operations Date occurs, then the Maximum Annual Contract Quantity shall be reset as of (and for the year following) the Commercial Operations Date to 1,500,000 gallons per year as set forth above, and for the partial year of operations of the Interim Project no Maximum Annual Contract Quantity shall apply. Seller shall be permitted to tender deliveries from any of the Production Facilities in order to satisfy the applicable Maximum Annual Contract Quantity then in effect.

 

Section 3.5     Credit Support. [**]

 

Section 3.6     Exclusivity. Except as otherwise provided in this Section 3.6, for so long as a Buyer Event of Default shall not have occurred and be continuing, Buyer shall have the exclusive right to purchase Renewable Isooctane from Seller during each year of the Delivery Term until such time as Buyer shall have purchased (or paid for if not taken) the applicable Minimum Annual Contract Quantity in such year. Notwithstanding the foregoing, no such exclusivity shall apply, and Seller shall not be restricted in selling to any other Person, Renewable Isooctane that will be utilized as fuel for on-road transportation purposes. In addition, if during any year Buyer’s Demand Forecast shows purchases of Renewable Isooctane within the next ninety (90) Days that would result in Buyer exceeding the applicable Minimum Annual Contract Quantity (the “Reserved Amount”), then the exclusivity contemplated by this Section 3.6 shall continue to apply to the Reserved Amount up to the Maximum Annual Contract Quantity (at which point there shall no longer be any exclusivity). For sake of clarity, nothing in this Agreement shall prohibit Seller from selling and delivering Renewable Isooctane that will be utilized as fuel for on-road transportation purposes, or any other fuels or products produced by the Production Facilities to be utilized for any purpose, to other Persons. In addition, and without limiting any other remedies of Seller, as regards quantities of Renewable Isooctane in excess of the Minimum Annual Contract Quantity that Buyer nominates but fails to take, or which Buyer elects not to purchase (e.g., after referral of a potential customer by Seller to Buyer, Buyer elects not to make a sale to such customer), and quantities of Renewable Isooctane included within the Minimum Annual Contract Quantity but which Buyer fails to take and pay for as contemplated by Section 3.2, nothing in this Agreement shall prohibit Seller from selling and delivering such Renewable Isooctane to other Persons. Other than with respect to inquiries for Renewable Isooctane that will be utilized as fuel for on-road transportation purposes, or any other fuels or products produced by the Production Facilities to be utilized for any purpose, Seller agrees that up to and until Buyer has purchased the applicable Maximum Annual Contract Quantity, in any year, for so long as a Buyer Event of Default shall not have occurred and be continuing, Seller shall direct any Person who inquires about purchasing Renewable Isooctane to Buyer.

 

 

 

[**] - Indicates certain information has been redacted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the redacted portions.

12

 

 

Section 3.7     Marketing Rights. Provided that there shall not be an Event of Default then occurring with respect to Buyer, Buyer shall have the exclusive right to market and re-sell Renewable Isooctane produced at the Production Facilities for use as, or as blending component in, “racing fuel” until the Commercial Operations Date. Beginning on the Commercial Operations Date and continuing through the Delivery Term, provided that there shall not be an Event of Default then occurring with respect to Buyer, for so long as 500,000 gallons of Renewable Isooctane purchased by Buyer hereunder is sold as, or as blending component in, “racing fuel” each year, Buyer shall have the exclusive right to market and re-sell Renewable Isooctane produced at the Production Facilities for use as, or as blending component in, “racing fuel”.

 

Section 3.8     Additional Buyer Entities. Any Subsidiary of Buyer that desires to purchase Renewable Isooctane under this Agreement (upon compliance with the requirements of this Section 3.8, hereafter, an “Additional Buyer”) shall be entitled to do so in accordance with the following terms: (i) prior to making any purchases, such Subsidiary shall execute a Joinder Agreement in the form attached hereto as Attachment B – Form of Joinder Agreement, agreeing to be bound by the terms and conditions set forth herein; and (ii) such Subsidiary shall comply with all credit support requirements as set forth herein. Upon compliance with the foregoing, each Additional Buyer shall be considered a “Buyer” for all purposes hereunder, and purchases of Renewable Isooctane by an Additional Buyer shall be included in the calculation of all requirements hereunder pertaining to the Minimum Annual Contract Quantity, the Maximum Annual Contract Quantity and the Price for Renewable Isooctane.

 

Section 3.9     Sustainability Certification. In respect of the Expansion Project, Seller shall, at Seller’s cost and expense, obtain and thereafter maintain for the remainder of the Term, a Sustainability Certification for the relevant production site, or sites no later than six (6) months after the Commercial Operation Date for the Expansion Project. In respect of the Interim Project, until the Commercial Operation Date for the Expansion Project, Seller will endeavor, through commercially reasonable efforts, to obtain and maintain a Sustainability Certification for the relevant production site, or sites, it being agreed that Seller is not making any representation or warranty as to the likelihood of success in obtaining or maintaining a Sustainability Certification for the Interim Project. Seller shall not be obligated to make any efforts to obtain a Sustainability Certification for the Existing Project. In the event any new sustainability or environmental certifications are being formulated in relevant jurisdictions, and there is a reasonable chance that such certifications will be enacted and applicable to the Expansion Project, the Parties agree to discuss such certifications in good faith and mutually agree upon whether the Parties will obtain any such certification.

 

13

 

 

Section 3.10     REACH Regulation. Buyer shall be solely responsible, all at Buyer’s sole cost and expense (except as expressly provided below) for fulfilling any requirements under the REACH Regulation in relation to Renewable Isooctane. Such requirements shall be satisfied as soon as commercially practicable and in any event prior to the first delivery of Renewable Isooctane hereunder, and thereafter Buyer shall maintain, at Buyer’s sole cost and expense, compliance with all REACH Regulation requirements during the term. In addition, Buyer shall be solely responsible for any requirements or costs associated with the withdrawal of the United Kingdom from the European Union, including any required additional registrations under the REACH Regulation or under the laws of the United Kingdom.

 

Section 3.11     In-Kind Substitution. The Parties acknowledge that as the market for Renewable Isooctane and other renewable hydrocarbons and/or alcohols evolves, it may be mutually advantageous to the Parties to consider the substitution of other products produced by Seller for sale hereunder, in lieu of Renewable Isooctane. Accordingly, the Parties hereby agree to discuss and consider in good faith the in-kind substitution of alternative products sold by Seller (which may include, for example, renewable alcohol-to-jet fuel and renewable isobutanol) to meet the “take or pay” obligation set forth in Section 3.2, it being understood that neither Party shall be obligated to agree to any such substitution unless it so determines in its sole discretion. 

 

Article 4

Measurement

 

Section 4.1     Measurement. The volume of Renewable Isooctane sold and purchased under this Agreement shall be determined at the time of delivery at the Delivery Point, which shall employ calibrated meters, certified at the time of delivery in accordance with Applicable Law, and corrected in each instance to measure volume in U.S. Gallons. All gauging, sampling and testing of Renewable Isooctane shall be performed in accordance with the latest methods of the API MPMS and the ASTM or other acceptable analytical testing methodology. All quantity/volume determinations shall be made in accordance with then currently applicable ASTM methodology. The actual volumes received and delivered shall be the measured volumes reported in Gallons at 60 degrees Fahrenheit; provided, however, the Parties recognize that volume correction factors and other measurement standards for bulk Renewable Isooctane movements have yet to be fully developed or universally adopted. The Parties agree to mutually consider and implement such standards when and as applicable. The Parties agree that the meter readings shall be determinative in the absence of manifest error. For purposes of this Section 4.1, “error” shall mean a discovery within thirty (30) days of the measurement that the measuring device was inaccurate by more than one percent (1%).

 

14

 

 

Section 4.2     Volume Disputes. If Seller or Buyer has reason to believe there to be an error in the meter readings for one or more deliveries of Renewable Isooctane by an amount in excess of zero point five percent (0.5%), without affecting the transfer of title, risk of loss, or other division of responsibilities between the Parties set forth in Section 6.1, the Party asserting error shall, within ten (10) Days of the date of arrival at the first port of import of volumes it believes were incorrectly measured, present the other Party with documentation supporting such determination. The burden of proof shall be on the Party asserting the error to show such error. The Parties shall confer, in good faith, on the causes for the discrepancy and shall proceed to correct such causes and adjust the volumes, if justified, for the Transport Container in question. If the period of time for which the material inaccuracy cannot be definitely known and is not mutually agreed upon, the correction shall be prorated on a 50% basis over the time elapsed between the last prior calibration test and the date the inaccuracy is corrected. In the event an error is determined that prejudiced Seller, Buyer shall refund Seller the difference between the Price paid for Renewable Isooctane delivered during the period of time during which the meter(s) was inaccurate and the actual Price that should have been paid for the volume of Renewable Isooctane actually delivered. If the error prejudiced Buyer, then Seller shall either (i) refund the amount overpaid by Buyer; or (ii) credit such amounts against amounts due by Buyer on the subsequent Invoice(s).

 

Section 4.3     Maintenance of Meters. Unless maintenance requirements imposed by Applicable Law or the API MPMS and the ASTM are more stringent, in which case such maintenance requirements will apply, Seller shall inspect, test and adjust its metering and measurement equipment, or shall cause it agents to do the same, at Seller’s expense on at least an annual basis. In the event that Buyer desires additional inspections and tests of the meters, Buyer may require such inspections and tests of Seller, and Seller shall promptly perform such inspections and tests at Buyer’s cost.

 

Article 5

Quality

 

Section 5.1     Warranty of Quality. Seller represents and warrants to Buyer that all Renewable Isooctane delivered by Seller to Buyer hereunder shall meet the applicable Specifications at the time of delivery at the Delivery Point. The warranty set forth in this Section 5.1 is for the sole benefit of Buyer and does not extend to any subsequent transferee or purchaser of Renewable Isooctane. Buyer shall not provide any representations or warranties on behalf of Seller to any Person.

 

Section 5.2     Changes to Specifications. The Specifications shall remain the same for the duration of the Term unless: (i) the Parties mutually consent to a revision of the Specifications, which shall be considered an amendment to this Agreement; or (ii) a Governmental Authority requires a change in the Specifications, in which case the Specifications shall be amended to meet such revised standards. For purposes of clause (i), the Parties will evaluate the impact of changing or not changing the Specifications and shall consider any capital costs that may be necessary to implement such action, and Seller shall in no way be obligated to amend the Specifications.

 

15

 

 

Section 5.3     Verification of Quality; Precautionary Samples; Rejection.

 

(a)     Seller agrees to provide Buyer with the results of its determinations (“Certificate of Quality”) representing the compliance of a precautionary sample of each shipment of Renewable Isooctane with the Specifications on the day of loading of the applicable Transport Container. Seller shall promptly notify Buyer upon discovery that a precautionary sample is defective. If requested by Buyer, a sample of the dispatched material shall be shipped by air freight for preparation of formulation after arrival.

 

(b)     In the event that: (i) Seller informs Buyer that the Renewable Isooctane is defective; (ii) Buyer finds that the Renewable Isooctane is defective, based on its own analysis and Seller agrees with Buyer’s analysis after being provided with reasonable data and documentation supporting such analysis; or (iii) Seller’s laboratory is unable to determine the Renewable Isooctane to be delivered is in conformance with the Specification upon loading, Buyer may, upon notice to Seller, reject the Renewable Isooctane composing such shipment, and re-route the applicable Transport Container back to the Delivery Point at Seller’s cost. All costs reasonably incurred by Buyer shall be reimbursed by Seller within thirty (30) Days of Seller receiving a detailed invoice from Buyer setting forth such costs and any other supporting documentation relating to the shipment of defective Renewable Isooctane. Such costs include, but are not limited to: (A) transportation costs incurred to deliver the Renewable Isooctane to the Delivery Point and in returning such Renewable Isooctane to Seller; (B) secondary testing costs; (C) re-refining; (D) costs associated with emptying and cleaning of storage tanks containing non-conforming Renewable Isooctane; and (E) handling costs. Buyer shall not commingle a shipment of Renewable Isooctane until it has received a Certificate of Quality or has itself confirmed by an independent test that the Renewable Isooctane is conforming, and Seller shall not be responsible for contamination of Buyer’s Renewable Isooctane or other fuel supplies in such event. Buyer will use reasonable commercial efforts to mitigate the costs of returning such defective Renewable Isooctane. If defective Renewable Isooctane is returned to Seller, Seller shall promptly replace the defective Renewable Isooctane with an equivalent volume of Renewable Isooctane. The remedies contained in this Section 5.3(b) shall be Buyer’s sole and exclusive remedy for delivery by Seller of defective Renewable Isooctane.

 

(c)     In addition to the obligations set forth in this Section 5.3(a), Seller and Buyer shall in good faith attempt to minimize the impact of any such quality problem, which may include, at Buyer’s reasonable but exclusive discretion, waiving the requirements set forth in Section 5.1 and accepting the defective Renewable Isooctane.

 

(d)     Each shipment of Renewable Isooctane shall be deemed accepted by Buyer if Buyer does not reject such shipment or a Dispute has not been formally noticed, within ten (10) Days after the Renewable Isooctane has arrived at the first port of import; provided, however that such time period for rejection shall not affect the transfer of title, risk of loss, or other division of responsibilities between the Parties set forth in Section 6.1. The burden of proof shall be on Buyer to show that such Renewable Isooctane is defective.

 

16

 

 

Section 5.4     Records; Right to Audit. Seller shall retain any and all documents and records regarding the delivery, quantity and quality of Renewable Isooctane sold and purchased under the terms of this Agreement for twelve (12) months after the date of the Invoice for such Renewable Isooctane, or until any dispute regarding such delivery, quantity and quality is resolved. Seller shall provide Buyer access to such documents and records on reasonable prior written notice and a reasonable hours, provided that such access shall be at Buyer’s sole cost and expense and shall be limited to confirming Seller’s performance under this Agreement.

 

Section 5.5     Disclaimer. Except as specifically provided in Section 5.1 and Section 5.3, Seller expressly disclaims and negates any and all representations, warranties or guarantees with respect to any Renewable Isooctane made available hereunder, written or oral, express or implied, including any representation, warranty or guaranty with respect to conformity to samples, quality or composition, performance, infringement, merchantability, fitness or suitability for any particular purpose or otherwise, all of which are hereby expressly excluded.

 

Article 6

Delivery

 

Section 6.1     Delivery of Renewable Isooctane to Buyer. All deliveries of Renewable Isooctane shall be made FCA (Incoterms 2010) at the Existing Project, the Interim Project or the Expansion Project, as applicable. Delivery shall occur when the Renewable Isooctane passes the last flange connection of the delivery system at the applicable Production Facility (the “Delivery Point”).

 

Section 6.2     Obligations of Buyer and Seller re Delivery.

 

(a)     Buyer shall, in accordance with this Agreement, Applicable Laws and applicable industry standards, provide, or cause to be provided, transportation from the Delivery Point of all quantities of Renewable Isooctane made available hereunder to Buyer. Buyer shall cause each Transport Container to comply with, and to be fully equipped, supplied, operated and maintained to comply with, all applicable industry standards and Applicable Laws, including those that relate to safety, environmental protection, and all permits that are required for the transportation and loading of Renewable Isooctane at the Delivery Point. Any Carrier selected by Buyer for this purpose shall be approved in advance by Seller.

 

(b)     Upon the arrival of any Transport Container at the Delivery Point, Seller shall have a right to inspect any such Transport Container as Seller may consider necessary to ascertain whether the Transport Container complies with this Agreement. No inspection (or lack thereof) of a Transport Container hereunder shall: (i) modify or amend Buyer’s obligations, representations, warranties and covenants hereunder, or (ii) constitute an acceptance or waiver by Seller of Buyer’s obligations hereunder.

 

17

 

 

(c)     Seller shall have the right to reject any Transport Container if, in Seller’s sole discretion, such Transport Container does not comply with the provisions of this Agreement, including if such Transport Container contains or may contain any contaminants that may be harmful to Seller’s operations or the Renewable Isooctane to be loaded hereunder, or if the driver or operator of such Transport Container is unfamiliar with rack loading operations or lacks proper certifications; provided that neither the exercise nor the non-exercise of such right shall reduce the responsibility of Buyer to Seller in respect of such Transport Container and its operation, nor increase Seller’s responsibilities to Buyer or third parties for the same.

 

Section 6.3     Production Estimates; Demand Forecast

 

(a)     Seller estimates that the Existing Project can produce approximately [**] gallons per year of Renewable Isooctane, commencing with the commencement of the Delivery Term until the Interim Operations Date. Prior to the commencement of the Delivery Term, the Parties shall mutually agree on a delivery schedule acceptable to both Parties for deliveries of Renewable Isooctane from the Existing Project.

 

(b)     No later than the thirtieth (30th) Day prior to the Interim Operations Date, and thereafter no later than the fifteenth (15th) Day of each month occurring during the Delivery Term prior to the Commercial Operations Date, Seller shall deliver to Buyer a forecast of estimated entire Renewable Isooctane production from the Interim Project (a “Production Estimate”) for the next twelve (12) months. Each such Production Estimate shall detail estimated entire production of Renewable Isooctane from the Interim Project on a monthly basis and reflect any planned outages or downtime that Seller anticipates for the Interim Project. With respect to each Production Estimate pertaining to the Interim Project, Buyer shall have ten (10) Days after receipt thereof to confirm its acceptance of such updated Production Estimate, and upon confirmation of acceptance by Buyer, the volumes specified for the first month in such Production Estimate shall become the nominated delivery quantities for such month from the Interim Project. If Buyer neither rejects nor confirms these nominated volumes within ten (10) days, they shall be deemed to be rejected. If Buyer cannot commit to the nominated volumes, both Parties shall mutually agree on a delivery schedule acceptable to both Parties. In all other respects, Production Estimates are non-binding.

 

(c)     No later than the thirtieth (30th) Day prior to the Commercial Operations Date, and thereafter no later than the first (1st) Day of each month occurring during the Delivery Term, Seller shall deliver to Buyer a Production Estimate for the Expansion Project for the next twelve (12) months. Each such Production Estimate shall detail estimated entire production of Renewable Isooctane from the Expansion Project on a monthly basis and reflect any planned outages or downtime that Seller anticipates for the Expansion Project. From and after the delivery of the first Production Estimate for the Expansion Project, no later than the fifteenth (15th) Day of the month prior to the month of dispatch Buyer shall deliver to Seller a rolling 30-60-90 forecast of estimated Renewable Isooctane demand covering the next three months (a “Demand Forecast”) which will be updated on a monthly basis. Buyer shall use reasonable efforts to take into account Seller’s Production Estimate in formulating the Demand Forecast. Seller shall have ten (10) Days after receipt thereof to confirm its acceptance of such Demand Forecast, and upon confirmation of acceptance by Seller, the volumes nominated for the first month of such Demand Forecast shall become the nominated delivery quantities for such month. If Seller neither rejects nor confirms these nominated volumes within ten (10) Days, they shall be deemed agreed. If Seller cannot commit to the nominated volumes, the Parties shall mutually agree on a delivery schedule acceptable to both Parties.

 

 

 

[**] - Indicates certain information has been redacted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the redacted portions.

18

 

 

(d)      The Parties shall use reasonable efforts to agree upon delivery schedules from the Interim Project and the Expansion Project so as to provide for ratable delivery of at least the applicable Minimum Annual Contract Quantity.

 

Section 6.4     Delivery Schedule. Prior to the twenty-fifth (25th) Day of each month preceding the month of dispatch that occurs during the Delivery Term, Seller shall submit to Buyer a schedule for delivery of Renewable Isooctane for the following month (“Delivery Schedule”) detailing: (i) the dates that Seller expects to deliver Renewable Isooctane during the following month; and (ii) the applicable Delivery Point(s) at which Seller will deliver Renewable Isooctane during such month. Seller shall promptly notify Buyer if Seller reasonably believes that Renewable Isooctane will not be available in the quantities indicated on the applicable Delivery Schedule for a particular Day if such deficit would exceed ten percent (10%), it being understood that Buyer shall only be charged for quantities actually delivered. If Seller does not fulfill the binding delivery obligations in line with the first month of the binding Demand Forecast according to Section 6.3, Seller shall compensate Buyer as set forth in Section 15.4.

 

Article 7

Title and Risk of Loss

 

Section 7.1     Title, Custody and Risk of Loss. Care, custody, control, title and risk of loss of all Renewable Isooctane delivered hereunder shall pass to Buyer at the Delivery Point.

 

Section 7.2     Warranty of Title. Seller represents and warrants that it has good and marketable title to the Renewable Isooctane at the time of delivery at the Delivery Point.

 

19

 

 

Article 8

Consideration

 

Section 8.1     Price. The price for deliveries of Renewable Isooctane hereunder during each year of the Delivery Term (the “Price”) shall be determined separately depending upon which Production Facility such Renewable Isooctane was produced at and when it was produced, as follows.

 

	
			Production 

			Facility

				
			Date of Production

				
			Price

			
	
			Existing Project

				
			Any time before the Interim Operations Date

				
			[**]

			
	
			Existing Project

				
			Any time on or after the Interim Operations Date until the first anniversary of the Interim Operations Date

				
			[**]

			
	
			Existing Project

				
			Any time on or after the first anniversary of the Interim Operations Date until the Commercial Operations Date

				
			[**]

			
	
			Interim Project

				
			Interim Operations Date until the first anniversary of the Interim Operations Date

				
			[**]

			
	
			Interim Project

				
			Any time on or after the first anniversary of the Interim Operations Date until the Commercial Operations Date

				
			[**]

			
	
			Interim Project

				
			Any time on or after the Commercial Operations Date until the first anniversary of the Commercial Operations Date

				
			[**]

			
	
			Interim Project

				
			Any time on or after the first anniversary of the Commercial Operations Date

				
			[**]

			
	
			Expansion Project

				
			Commercial Operations Date until the first anniversary of the Commercial Operations Date

				
			[**]

			
	
			Expansion Project

				
			On or after the first anniversary of the Commercial Operations Date

				
			[**]

			

For sake of clarity, after the Commercial Operations Date Seller shall no longer be permitted to deliver Renewable Isooctane from the Existing Project. Seller shall use commercially reasonable efforts to cause the Minimum Annual Contract Quantity to be delivered from the largest Production Facility in operation.

 

 

 

[**] - Indicates certain information has been redacted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the redacted portions.

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Section 8.2     Taxes. The Price does not include any Taxes imposed by Governmental Authorities on the sale, purchase, transfer, transportation, storage, or delivery of Renewable Isooctane under this Agreement (“Buyer Taxes”). Buyer will be responsible for and will pay when due any Buyer Taxes. Seller will be responsible for income and franchise Taxes imposed on Seller’s net income or gross revenue (“Seller Taxes”). If Seller pays or otherwise incurs Buyer Taxes on account of Buyer, such Buyer Taxes will be set forth in detail on the applicable Invoice and added to amounts due, and Buyer shall promptly reimburse Seller for any and all Buyer Taxes paid by Seller. Buyer covenants and agrees that all Taxes shall be paid as they become due notwithstanding any Dispute regarding an Invoice, and that Seller shall have no liability for any Buyer Taxes. Buyer shall indemnify, defend and hold Seller harmless from any and all penalties or interest charges levied by any Governmental Authority on Seller as a result of Buyer failing to pay Buyer Taxes, along with any costs and expenses (including attorneys’ fees) associated therewith or arising therefrom. Seller shall cooperate with reasonable requests of Buyer in any efforts of Buyer to obtain exemption from, or to minimize, such Buyer Taxes.

 

Article 9

Invoicing and Payment

 

Section 9.1     Invoicing. Seller shall prepare an invoice for each shipment of Renewable Isooctane delivered to Buyer hereunder (“Invoice”), which shall contain the following information: (a) the volume of Renewable Isooctane in the applicable shipment as measured pursuant to Section 4.1; (b) the Price per Gallon of Renewable Isooctane, determined pursuant to Section 8.1; (c) a description of applicable Buyer Taxes and whether Seller has remitted or will remit such Buyer Taxes to the appropriate Governmental Authority; (d) the total amount due on the Invoice; (e) the date of the shipment; and (f) any other information Buyer may reasonably request in advance. A bill of lading or express receipt must accompany each Invoice. The Invoice shall be forwarded with the applicable shipment, and Seller shall also send a copy of each Invoice to Buyer at the following address, or any other address which has been provided by Buyer to Seller in advance in writing:

 

Haltermann Carless Deutschland GmbH

Joachim-Becher-Straße 1

D-67346 Speyer

Germany

Attn: Accounts Payable

 

 

 

Section 9.2     Payment. Payment by Buyer on each Invoice shall be net sixty (60) Days from the date of the applicable Invoice. Each shipment shall be invoiced no sooner than its delivery at the Delivery Point. Payment shall be made by wire transfer of immediately available funds in U.S. Dollars to the account specified by Seller from time to time. Each payment of any amount owing hereunder shall be in the full amount due without reduction or offset for any reason (except as expressly allowed under this Agreement), including exchange charges, or bank transfer charges.

 

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Section 9.3     Disputed Amounts. Buyer may hold in abeyance any disputed portion of any Invoice which Buyer disputes in good faith pursuant to the Dispute resolution provisions of the Agreement. Buyer shall provide written notice of any disputed amounts prior to the date required for payment on such Invoice and shall pay all undisputed amounts when due. Any disputed amount which is ultimately determined to have been payable shall be paid with interest according to Section 9.4 from and including the date the item was payable and including the actual date of payment.

 

Section 9.4     Interest. Any amount not paid by Buyer when due shall bear interest from and including the date payment was originally due to and including the actual date of payment at the lower of: (a) the Prime Rate plus three percent (3%), or (b) the maximum rate permitted by Applicable Law.

 

Article 10

Representations

 

Section 10.1     Seller’s Representations. Seller hereby makes the following representations to Buyer:

 

(a)     It is a corporation, duly organized, validly existing, and in good standing under the laws of Delaware and is duly authorized and qualified to conduct business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure to so qualify would affect its performance of its obligations under this Agreement;

 

(b)     It has all requisite power and authority to conduct its business and execute and deliver this Agreement and perform its obligations hereunder in accordance with its terms;

 

(c)     The execution, delivery, and performance of this Agreement have been duly authorized by all requisite corporate action and this Agreement constitutes the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms;

 

(d)     Neither the execution, delivery or performance of the Agreement conflicts with, or results in a violation or breach of the terms, conditions or provisions of, or constitutes a default under, the organizational documents of Seller or any material agreement, contract, indenture or other instrument under which Seller or its assets are bound, nor violates or conflicts with any Applicable Law or any judgment, decree, order, writ, injunction or award applicable to Seller;

 

(e)     Seller is not in violation of any Applicable Law or Governmental Authorization which violations, individually or in the aggregate, would affect its performance of its obligations under this Agreement;

 

(f)     Seller is the holder of all Governmental Authorizations required to operate and conduct its business now and as contemplated by this Agreement, other than Governmental Authorizations which will be timely obtained in accordance with the terms of this Agreement, if any;

 

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(g)     there is no pending controversy, legal action, arbitration proceeding, administrative proceeding or investigation instituted, or to the best of Seller’s knowledge threatened, against or affecting, or that could affect, the legality, validity and enforceability of this Agreement or the performance by Seller of its obligations hereunder in any material respect, nor does Seller know of any basis for any such controversy, action, proceeding or investigation; and

 

(h)     Seller has carefully studied and reviewed this Agreement, including all Attachment, Appendices and Exhibits attached hereto, and has become familiar with all its terms and provisions.

 

Section 10.2     Buyer Representations. Buyer hereby makes the following representations to Seller:

 

(a)     It is a corporation duly organized, validly existing, and in good standing under the laws of Germany and is duly authorized and qualified to conduct business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure to so qualify would affect its performance of its obligations under this Agreement;

 

(b)     It has all requisite power and authority to conduct its business and execute and deliver this Agreement and perform its obligations hereunder in accordance with its terms;

 

(c)     The execution, delivery, and performance of this Agreement have been duly authorized by all requisite corporate action and this Agreement constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms;

 

(d)     Neither the execution, delivery or performance of the Agreement conflicts with, or results in a violation or breach of the terms, conditions or provisions of, or constitutes a default under, the organizational documents of Buyer or any material agreement, contract, indenture or other instrument under which Buyer or its assets are bound, nor violates or conflicts with any Applicable Law or any judgment, decree, order, writ, injunction or award applicable to Buyer;

 

(e)     Buyer is not in violation of any Applicable Law or Governmental Authorization which violations, individually or in the aggregate, would affect its performance of its obligations under this Agreement;

 

(f)     It is the holder of all Governmental Authorizations required to operate and conduct its business now and as contemplated by this Agreement, other than Governmental Authorizations which will be timely obtained in accordance with the terms of this Agreement, if any;

 

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(g)     there is no pending controversy, legal action, arbitration proceeding, administrative proceeding or investigation instituted, or to the best of Buyer’s knowledge threatened, against or affecting, or that could affect, the legality, validity and enforceability of this Agreement or the performance by Buyer of its obligations hereunder in any material respect, nor does Buyer know of any basis for any such controversy, action, proceeding or investigation;

 

(h)     It is financially solvent, able to pay its debts as they mature, and upon project financing, will possess sufficient capital to complete its obligations under this Agreement; and

 

(i)     It has carefully studied and reviewed this Agreement, including all Attachment, Appendices and Exhibits attached hereto, and has become familiar with all its terms and provisions.

 

Article 11

Insurance

 

Section 11.1     Required Insurance. Until all obligations under this Agreement are satisfied, the Parties shall each procure and maintain the following insurance policies from insurers with an AM Best rating of B+ VI or a comparable rating:

 

(a)      Employer’s Liability insurance of at least Five Hundred Thousand Dollars ($500,000).

 

(b)     Commercial General Liability insurance with a minimum combined single limit of One Million Dollars ($1,000,000) each occurrence for bodily injury and broad form property damage. The policy shall cover bodily injury, property damage, personal injury, products and completed operations, and broad form contractual liability coverage including, but not limited to, the commercially insurable liability assumed under indemnification obligations set forth in this Agreement.

 

(c)     Business Automobile Liability insurance with a combined single limit for bodily injury and property damage of a minimum limit of One Million Dollars ($1,000,000) each occurrence with respect to any and all vehicles of such Party, whether owned, hired, leased, borrowed, or non-owned, assigned to or used in connection with performance of this Agreement; and

 

(d)     Environmental Impairment Liability insurance with a minimum combined single limit and annual aggregate of One Million Dollars ($1,000,000), which shall include coverage for all actions, omissions, or active or passive negligence, for bodily injury, property damage, defense costs and environmental remediation costs with respect to Releases of Hazardous Substances (including Renewable Isooctane) at the Production Facilities Project or at any location after the Delivery Point.

 

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Section 11.2     Requirements of Insurance.

 

(a)     All the policies required by Section 11.1 shall name the other Party as an additional insured.

 

(b)     The policies shall stipulate that the insurance required by Section 11.1 shall be primary insurance and that any insurance or self-insurance carried by the other Party shall not be contributory insurance.

 

(c)     Each Party shall waive, and require its insurers to waive, any and all recovery rights to which any such insurer may have against the other Party by virtue of the payment of any loss under any insurance.

 

(d)     All policies required under by Section 11.1 shall contain a severability of interest provision, and shall not contain any commutation clause or any other provision that limits third party actions over claims.

 

(e)     Upon a Party’s request, the other Party shall provide documentary evidence in a form and content acceptable to the requesting Party, confirming to such other Party’s satisfaction that the required insurance policies have been obtained and will remain in effect as required by this Article 11.

 

(f)     Once a year, each Party shall provide the other Party with information about any material changes in or cancellation of any insurance policies.

 

Article 12

Force Majeure

 

Section 12.1     Force Majeure Generally. Neither Party shall be liable to the other Party for any delay or failure in performance under this Agreement if and to the extent such delay or failure is a result of a Force Majeure Event. Subject to the provisions of this Article 12, the term “Force Majeure Event” shall mean any act, event or circumstance, whether of the kind described herein or otherwise, that is not reasonably within the control of the Party claiming Force Majeure, and that prevents or delays in whole or in part such Party’s performance of one or more of its obligations under this Agreement.

 

Section 12.2     Force Majeure Events. Force Majeure Events may include circumstances of the following kind, provided that such circumstances satisfy the definition of Force Majeure Event set forth above: acts of God, the government, or a public enemy; strikes, lockouts; wars, blockades or civil disturbances of any kind; epidemics, adverse weather conditions, fires, explosions; and declarations of force majeure or curtailment by electric, gas or other utility or commodity suppliers or transporters that results in inaccessibility or inoperability of any of the Production Facilities.

 

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Section 12.3     Certain Obligations Not Excused.

 

(a)     Notwithstanding anything to the contrary herein, no Force Majeure Event will relieve, suspend or otherwise excuse either Party from performing any obligation to indemnify, reimburse, hold harmless or otherwise pay the other Party under this Agreement.

 

(b)     In addition, the following events shall not constitute a Force Majeure Event:

 

(i)     a Party’s inability to finance its obligations under this Agreement or the unavailability of funds to pay amounts when due in the currency of payment;

 

(ii)     the unavailability of, or any event affecting, any facilities at or associated with any loading port (other than the Production Facilities or Buyer’s proposed port of export) or unloading port (or downstream of an unloading port);

 

(iii)     the ability of Seller or Buyer to obtain better economic terms for Renewable Isooctane from an alternative supplier or buyer, as applicable; and

 

(iv)     changes in either Party’s market factors, default of payment obligations or other commercial, financial or economic conditions, including failure or loss of any of Buyer’s or Seller’s markets.

 

Section 12.4     Procedures and Timing. A Force Majeure Event shall take effect at the moment such an event occurs. Upon the occurrence of a Force Majeure Event that prevents, interferes with or delays the performance by a Party, in whole or in part, of any of its obligations under this Agreement, the Party affected shall give notice thereof to the other Party describing such event and stating the obligations the performance of which are affected (either in the original or in supplemental notices) and stating, as applicable: (i) the estimated period during which performance may be prevented, interfered with or delayed, including, to the extent known or ascertainable, the estimated extent of such reduction in performance; and (ii) the particulars of the program to be implemented to resume normal performance under this Agreement. Settlement of strikes, lockouts, or other industrial disturbances shall be entirely within the discretion of the Party experiencing such situations, and nothing in this Agreement shall require such Party to settle industrial disputes by yielding to demands made on it when it considers such action inadvisable.

 

Section 12.5     Apportionment and Cancelation. Notwithstanding any other provision in this Article 12, (i) during any Force Majeure Event affecting Seller, Seller shall be entitled to apportion the remaining capacity at the Production Facilities, as applicable, among itself, its Affiliates, and any other customers, Buyer included, at Seller’s discretion, and (ii) Seller shall have the right to terminate this Agreement or cancel any deliveries of Renewable Isooctane without liability whatsoever if for any reason if Seller ceases selling Renewable Isooctane or shuts down or reduces production of Renewable Isooctane, temporarily or permanently.

 

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Article 13

Compliance with Laws and Regulations

 

Section 13.1     Compliance with Laws and Regulations. This Agreement is subject to all present Applicable Laws and any future Applicable Law imposed by Governmental Authorities having jurisdiction over the Parties. In performing its obligations hereunder, each Party shall comply with all Applicable Laws now and then in-effect.

 

Section 13.2     Material Safety Compliance. Buyer warrants that it is fully informed concerning the nature and existence of risks posed by transporting, storing, using, handling and being exposed to Renewable Isooctane.

 

Article 14

Indemnification

 

Section 14.1     Indemnity.

 

(a)     Buyer shall indemnify, defend and save harmless the Seller Indemnitees from and against any and all Claims and Losses of Third Parties for loss of or damage to any property whatsoever or for injury, including fatal injury, to any person whatsoever that arise out of or are connected with actions or omissions in the performance by Buyer of its obligations under this Agreement, or that arise out of or are connected with the handling, storage, sales, transportation, use, misuse, blending, processing or disposal by or on behalf of Buyer, Buyer’s customers, or their respective Affiliates or their contractors or carriers of any tier, of any Renewable Isooctane after such Renewable Isooctane has been made available to Buyer at the Delivery Point, including of any derivative product, co-product, byproduct or waste product therefrom, whether used solely or in combination with other substances or in any process, except in each case to the extent that such Claims or Losses are caused by (i) a material breach of this Agreement by Seller, (ii) the delivery of Renewable Isooctane that did not comply with the Specifications at the time of delivery to the Delivery Point, or (iii) the negligence or willful misconduct of Seller.

 

(b)     Seller shall indemnify, defend and save harmless the Buyer Indemnitees from and against any and all Claims and Losses of Third Parties for loss of or damage to any property whatsoever or for injury, including fatal injury, to any person whatsoever that arise out of or are connected with actions or omissions in the performance by Seller of its obligations under this Agreement, or that arise out of or are connected with the handling, storage, sales, transportation, use, misuse, blending, processing or disposal by or on behalf of Seller or its Affiliates or their contractors or carriers of any tier, of any Renewable Isooctane prior to the time such Renewable Isooctane has been delivered to the Delivery Point, except in each case to the extent caused by Buyer’s breach of the Agreement, the negligence or willful misconduct of Buyer or any Buyer Indemnitee.

 

Section 14.2     Seller’s Intellectual Property Infringement Indemnity.

 

(a)     If an action is brought or threatened against Buyer claiming that Buyer’s use, as permitted herein, of the Renewable Isooctane within the Territory infringes any Intellectual Property rights arising or existing under Applicable Law, Seller shall defend, indemnify and hold harmless the Buyer Indemnitees from and against any and all Claims and Losses of Buyer and its Affiliates to the extent arising from such action or claim.

 

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(b)     If Buyer’s permitted use of the Renewable Isooctane within the Territory is materially impaired, Seller shall use commercially reasonable efforts, at its expense, to continue its supply obligations under this Agreement, including at its own election and expense (i) to substitute an equivalent non-infringing product for the allegedly infringing Renewable Isooctane, (ii) to modify the allegedly infringing Renewable Isooctane so that it no longer infringes but remains functionally equivalent or better or (iii) to obtain for Buyer the right to continue using such Renewable Isooctane. Seller shall, prior to proceeding with any of the foregoing actions, consult with Buyer as to the proposed action and consider in good faith any reasonable request of Buyer in respect thereof. Nothing herein constitutes a guarantee by Seller that such efforts will succeed in avoiding the infringement claim or that Seller will be able to replace the infringing Renewable Isooctane with a product of comparable functionality or effectiveness. If Seller reasonably believes that an injunction against use of the Renewable Isooctane in the Territory may be granted against Buyer, either imminently or with the passage of time, Seller may at its expense, and upon reasonable prior written notice to Buyer, take any of the foregoing actions in order to minimize its liability. If, due to Intellectual Property infringement concerns, Seller does not deliver Renewable Isooctane as required by this Agreement, Seller shall compensate Buyer as set forth in Section 15.4. If, due to Intellectual Property infringement concerns, Seller does not deliver Renewable Isooctane as required by this Agreement, and such non-delivery continues for more than a consecutive six (6) month period, Buyer shall have the right to terminate the Agreement on twenty (20) days’ written notice to Seller, without any further liability of either Party arising out of such termination; provided, however, that Buyer shall no longer have such termination right if Seller resumes deliveries.

 

(c)     This Section 14.2 does not apply to, and Seller assumes no liability with respect to, Claims and Losses for patent infringement or copyright infringement or improper use of other proprietary rights (including any license or Intellectual Property, whether by way of copyright or otherwise) to the extent that such Claims or Losses relate, in whole or in part, to (i) Buyer’s modification or alteration of the Renewable Isooctane (except to the extent permitted by this Agreement), made without Seller’s written consent or contrary to Seller’s instructions, or (ii) the combination of the Renewable Isooctane with other products or materials.

 

(d)     The foregoing provisions of this Section 14.2 state the entire liability and obligations of Seller and its Affiliates, and the exclusive remedy of the Buyer Indemnitees, with respect to any actual or alleged infringement of patents, copyrights, trademarks or other Intellectual Property by the Renewable Isooctane sold and delivered hereunder.

 

(e)     Buyer shall promptly notify Seller in writing following receipt of written notice of any claims alleging infringement of patents or other proprietary rights (including Intellectual Property) in connection with Buyer’s permitted use of the Renewable Isooctane or Seller’s performance of its supply obligations under this Agreement, and shall provide Seller with all information in its possession relevant to such claim.

 

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Section 14.3     Buyer’s Intellectual Property Infringement Indemnity. If an action is brought or threatened against Seller claiming that any condition or event described in Section 14.2(c) results in an infringement upon any Intellectual Property within the Territory arising or existing under Applicable Law, Buyer shall defend, indemnify and hold harmless the Seller Indemnified Parties at Buyer’s expense from and against any and all Claims and Losses of Seller and its Affiliates to the extent arising from such action or claim.

 

Section 14.4     Indemnification Procedures.

 

(a)     If any Person seeking indemnification hereunder (an “Indemnified Party”) believes that a claim, demand or other circumstance exists that has given or may reasonably be expected to give rise to a right of indemnification under this Article 14 (whether or not the amount thereof is then quantifiable) against a Party (the “Indemnifying Party”), such Indemnified Party shall assert its claim for indemnification by giving written notice thereof (a “Claim Notice”) to the Indemnifying Party promptly after, and in any event no later than ten (10) Business Days following, receipt of notice of such claim, suit, action or proceeding by such Indemnified Party. Each Claim Notice shall describe the claim in reasonable detail. The failure of the Indemnified Party to so notify the Indemnifying Party shall not relieve the Indemnifying Party of liability hereunder except (and then only) to the extent that the defense of such claim, suit, action or proceeding is prejudiced by the failure to give such notice.

 

(b)     Upon receipt by an Indemnifying Party of a Claim Notice, the Indemnifying Party shall be entitled to (i) assume and have sole control over the defense of such action or claim at its sole cost and expense and with its own counsel if it gives notice of its intention to do so to the Indemnified Party within thirty (30) days of the receipt of such notice from the Indemnified Party; provided, that the Indemnifying Party’s retention of counsel shall be subject to the written consent of the Indemnified Party if such counsel creates a conflict of interest under applicable standards of professional conduct or an unreasonable risk of disclosure of Confidential Information concerning an Indemnified Party, which consent shall not be unreasonably withheld, conditioned, or delayed; and (ii) negotiate a settlement or compromise of such action or claim; provided, that (A) such settlement or compromise shall include a full and unconditional waiver and release of all Indemnified Parties (without any cost or liability of any nature whatsoever to such Indemnified Parties) and (B) any such settlement or compromise shall be permitted hereunder only with the written consent of the Indemnified Party, which shall not be unreasonably withheld, conditioned or delayed.

 

(c)     If the Indemnifying Party elects to defend any such action or claim, then the Indemnified Party shall be entitled to participate in such defense with counsel reasonably acceptable to the Indemnifying Party, at such Indemnified Party’s sole cost and expense. Notwithstanding the foregoing, if (i) a claim is primarily for non-monetary damages against the Indemnified Party or seeks an injunction or other equitable relief that, if granted, would reasonably be expected to be material to the Indemnified Party, (ii) the Indemnified Party shall have determined in good faith that an actual or potential conflict of interest makes representation of the Indemnifying Party and the Indemnified Party by the same counsel or the counsel selected by the Indemnifying Party inappropriate, or (iii) the claim is a criminal proceeding, then in each case the Indemnified Party may, upon notice to the Indemnifying Party, assume the exclusive right to defend, compromise and settle such claim and the reasonable fees and expenses of the Indemnified Party’s separate counsel shall be borne by the Indemnifying Party to the extent the claim is indemnifiable hereunder. Notwithstanding anything to the contrary herein, for sake of clarity the Parties agree that the foregoing provisions shall not be construed so as to permit the Indemnified Party to control or assume the defense of any action, lawsuit, proceeding, investigation, demand or other claim brought against the Indemnifying Party concurrently with or in a joint proceeding in respect of any claim that is the subject of an indemnification claim hereunder by the Indemnified Party.

 

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(d)     If, within thirty (30) days of receipt from an Indemnified Party of any Claim Notice, the Indemnifying Party (i) advises such Indemnified Party in writing that the Indemnifying Party shall not elect to defend, settle or compromise such action or claim or (ii) fails to make such an election in writing, such Indemnified Party may, at its option, defend, settle or otherwise compromise or pay such action or claim.

 

(e)     Each Indemnified Party shall make available to the Indemnifying Party all information reasonably available to such Indemnified Party relating to such action or claim, except as may be prohibited by Applicable Law. In addition, the Parties shall render to each other such assistance as may reasonably be requested in order to ensure the proper and adequate defense of any such action or claim. The Party in charge of the defense shall keep the other Party fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.

 

Article 15

Defaults and Remedies

 

Section 15.1     Events of Default. A Party shall be deemed to be in default hereunder if any of the following events occur (each of the following events to be referred to as an “Event of Default”, the Party in default to be referred to as the “Defaulting Party” and the Party not in default to be referred to as the “Non-Defaulting Party”):

 

(a)     the failure to make, when due, any payment required pursuant to this Agreement if such failure is not remedied within ten (10) Business Days after written notice thereof;

 

(b)     any representation or warranty made by such Party herein is false or misleading in any material respect when made or when deemed made or repeated;

 

(c)     if a Bankruptcy Event has occurred with respect to such Party;

 

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(d)     if such Party fails to perform any material obligation imposed upon such Party under this Agreement, and such failure is not remedied within forty-five (45) Days after such Party receives notice thereof from the other Party; provided that if such forty-five (45) Day period is not sufficient to enable the remedy or cure of such failure in performance, and such Party shall have upon receipt of the initial notice promptly commenced and diligently continues thereafter to remedy such failure, then such Party shall have a reasonable additional period of time;

 

(e)     in respect of Buyer, if Buyer fails to satisfy the creditworthiness/collateral requirements of this Agreement and such failure continues for three (3) Business Days after written notice thereof; or

 

(f)     in respect of Buyer, if Buyer fails to unload, handle, store, use, process, sell, or dispose of Renewable Isooctane or any impurity, derivative product, by product and waste product thereof in a safe or environmentally responsible manner, or with due regard to health and industrial hygiene.

 

Notwithstanding the foregoing, a Party shall not be in default of its obligations hereunder to the extent such failure is (i) caused by or is otherwise attributable to a breach by the other Party of its obligations under this Agreement, or (ii) occurs as a result of a Force Majeure Event declared by a Party in accordance with this Agreement.

 

Section 15.2     Notice of Event of Default. If either Party reasonably believes that an event has occurred which, if not remedied within the applicable cure period explicitly set forth in Section 15.1 above (as applicable, the “Moratorium Period”), would result in an Event of Default by or affecting the other Party, the Non-Defaulting Party shall give the Defaulting Party a notice (a “Default Notice”), which shall specify and provide particulars of the alleged Event of Default. If the Defaulting Party cures the alleged Event of Default before the expiration of the later of the Moratorium Period or the cure period specified in the Default Notice, then the Default Notice shall be inoperative with respect to the alleged Event of Default that has been so cured or remedied.

 

Section 15.3     Remedies. If an Event of Default occurs and continues uncured following the applicable Moratorium Period, then the Non-Defaulting Party shall have such remedies as may be available to it at law or in equity, including the right to terminate this Agreement on written notice to the Defaulting Party, subject, however, to the limitations on liability provided for herein. Termination of this Agreement shall be without prejudice to the rights and liabilities of the Parties accrued prior to or as a result of such termination.

 

Section 15.4     Failure to Deliver Remedy. Solely with respect to Seller’s failure to deliver Renewable Isooctane in accordance with Section 3.2, Section 6.4, or Section 13.2(b) of this Agreement, Seller shall compensate Buyer for the direct actual damages incurred by Buyer as a result of such non-delivery; provided, however, that under no circumstances shall Seller’s liability to Buyer exceed an amount equal to eighty percent (80%) of the aggregate Price that would have been payable pursuant to Section 8.1 for the quantity of the non-delivered Renewable Isooctane. Solely for purposes of this Section 15.4, and without limiting the application of Article 16 hereof, the Parties agree that direct actual damages incurred and payable by Buyer pursuant to written contracts between Buyer and a customer of Buyer may be included in the damages recoverable by Buyer pursuant to this Section 15.4, provided that Buyer shall have the burden of proof to show that such damages are directly attributable to Seller’s failure to deliver hereunder in accordance with Section 3.2, Section 6.4, or Section 13.2(b). Buyer shall not be entitled to duplicative recoveries pursuant to this Section 15.4 with respect to recoveries pursuant to any combination of Section 3.2, Section 6.4, or Section 13.2(b).

 

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Article 16

Limitations of Liability

 

Section 16.1     Limitation on Duties. This Agreement shall not create on the part of Seller or Buyer any legal duty owed to the consumers or customers (or the customers served by customers) of either Party.

 

Section 16.2     Limitation on Remedies. For breach of any provision for which an express remedy or measure of damages is provided, such express remedy or measure of damages shall be the sole and exclusive remedy, a Party’s liability hereunder shall be limited as set forth in such provision, and all other remedies or damages at law or in equity are waived. If no remedy or measure of damages is expressly provided herein, a Party’s liability shall be limited to direct actual damages only, such direct actual damages shall be the sole and exclusive remedy, and all other remedies or damages at law or in equity are waived. In the event of a breach of this Agreement by Seller occurring prior to the Interim Operations Date, such direct actual damages shall be limited to damages arising out of a failure to deliver Renewable Isooctane from the Existing Project in the quantities required hereby, and expressly exclude any damages pertaining to Renewable Isooctane expected to be delivered from the Interim Project and/or the Expansion Project (including the Minimum Annual Contract Quantities contemplated therefor), all of which are hereby expressly waived. In the event of a breach of this Agreement by Seller occurring prior to the Commercial Operations Date, such direct actual damages shall be limited to damages arising out of a failure to deliver Renewable Isooctane from the Existing Project and/or the Interim Project in the quantities required hereby, and expressly exclude any damages pertaining to Renewable Isooctane expected to be delivered from the Expansion Project (including the Minimum Annual Contract Quantities contemplated therefor), all of which are hereby expressly waived.

 

Section 16.3     Disclaimer of Certain Damages. Notwithstanding anything to the contrary contained in this Agreement, neither Party shall, under any circumstances, be liable to the other Party for consequential, incidental, special, punitive, or exemplary damages arising out of or related to the transactions contemplated under this Agreement, including, but not limited to, lost profits or loss of business, or business interruption damages, even if apprised of the likelihood of such damages occurring, and regardless of whether available in tort or agreement or by statute; provided, however, that the foregoing shall not prevent the recovery through the indemnification provisions of article 14 of consequential, incidental, special, punitive, or exemplary damages suffered by and paid to a Third Party by an Indemnified Party (excluding Third Party customers of an Indemnified Party) as a result of actions included in the protection afforded by the indemnification provisions of Article 14.

 

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Article 17

Dispute Resolution

 

Section 17.1     Dispute Resolution Generally. Except with respect to any action for injunctive relief, any controversies, claims, disagreements, or disputes (each, a “Dispute”) between the Parties arising out of or related to the performance of this Agreement, or the alleged breach, termination, or invalidity hereof, shall be resolved in accordance with this Article 17. A Party shall be entitled to recover all costs and expenses from the other Party relating to the enforcement of this Article 17 should that other Party seek to litigate any Disputes or otherwise pursue a dispute resolution process that differs from that set forth in this Article 17.

 

Section 17.2     Friendly Consultation. In the event of any Dispute, the Parties shall attempt in the first instance to resolve such Dispute through friendly consultations between the Parties. Either Party may give notice to the other Party invoking the provisions and process set forth in this Section 17.2. Such notice shall contain the name of the sending Party’s senior officer who is authorized to attempt resolution of the Dispute. Within five (5) Days after receiving such notice, the receiving Party shall also name a senior officer who is authorized to attempt resolution of the Dispute and shall notify the sending Party thereof. The senior officers nominated by each Party shall meet at a mutually agreed time and place, or by telephone conference, to attempt resolution of the Dispute no later than ten (10) Days after notice of the Dispute was initially received. Should a resolution of such Dispute not be obtained within five (5) Days after the meeting of senior officers for such purpose, either Party may then, by notice to the other, submit the Dispute to binding arbitration pursuant to Section 17.3.

 

Section 17.3     Binding Arbitration.

 

(a)     In the event the Parties cannot resolve the Dispute pursuant to Section 17.2, either Party may submit the Dispute to binding arbitration administered by the American Arbitration Association in accordance with the Commercial Arbitration Rules of the American Arbitration Association. All procedural aspects of this agreement to arbitrate, including the construction and interpretation of this agreement to arbitrate, the scope of the arbitrable issues, allegations of waiver, delay or defenses as to arbitrability, and the rules governing the conduct of the arbitration, shall be governed by and construed pursuant to the United States Arbitration Act, 9 U.S.C. §§ 1-16. Either Party may invoke binding arbitration by written notice to the other. Unless otherwise agreed upon by the Parties, the arbitration shall be held in Denver, Colorado. The Parties shall mutually agree on one (1) neutral and independent arbitrator. If the Parties cannot agree on one (1) arbitrator within thirty (30) Days from the date on which the notice invoking arbitration is given, the American Arbitration Association shall be empowered to appoint the single, independent arbitrator from a list of three to be provided by the American Arbitration Association with each Party striking one name from the list. The arbitrator must be a lawyer licensed to practice in the State of New York and shall be qualified by at least ten (10) years’ of legal experience in the energy industry (with at least three (3) years’ experience in the oil, gas, or renewable fuels industry). The hearing shall be held within ninety (90) Days after appointment of the arbitrator, and the arbitrator shall promptly render a decision promptly thereafter. The Parties agree to cooperate fully with the arbitrator in order to meet the time schedule for decision and agree that an award may be entered against any party failing to so cooperate. The arbitrator shall not have the authority to award punitive damages under any circumstances (whether it be exemplary damages, treble damages, consequential damages, or any other penalty or punitive type of damages) regardless of whether such damages may be available under any law, as the Parties have waived their rights, if any, to recover such damages in connection with any such dispute pursuant to Article 16.

 

33

 

 

(b)     The arbitrator’s decision, including the finding of facts and his/her conclusions of law shall be final, conclusive, and binding upon the Parties. Judgment upon the award rendered by the arbitrator may be entered in any court in the State of Colorado having jurisdiction pursuant to the Colorado Dispute Resolution Act, C.R.S. 13-22-201 et seq., without the right of appeal. The Parties hereby irrevocably waive their right to any form of appeal, review or recourse to any court or other judicial authority. Further, the Parties hereby consent to the jurisdiction of the courts of the State of Colorado and waive any defenses they may have regarding jurisdiction.

 

(c)     The arbitrator is authorized to take any interim measures as the arbitrator considers or arbitrators consider necessary, including the making of interim orders or awards or partial final awards. An interim order or award may be enforced in the same manner as a final award. Further, the arbitrator is authorized to make pre- or post-award interest at the interest rate specified in Section 9.4.

 

(d)     The Parties agree that any Dispute and any negotiations and arbitration proceedings between the Parties in relation to any Dispute shall be confidential and will not be disclosed to any Third Party. The Parties further agree that any information, documents or materials produced for the purposes of, or used in, negotiations, mediation or arbitration of any Dispute shall be confidential and will not be disclosed to any Third Party. Notwithstanding the foregoing, the Parties agree that disclosure may be made: (i) in order to enforce any of the provisions of this Agreement including without limitation, the agreement to arbitrate, any arbitration order or award and any court judgment; (ii) to the auditors, legal advisers, insurers and affiliates of that Party to whom the confidentiality obligations set out in this Agreement shall extend; (iii) where that Party is under a legal or regulatory obligation to make such disclosure, but limited to the extent of that legal obligation; or (iv) with the prior written consent of the other Party. The arbitrator shall execute a writing agreeing to be bound by the provisions of this Section 17.3.

 

34

 

 

(e)     The costs and expenses of the arbitration (including reasonable attorneys’ fees) shall be borne by the losing Party, unless the arbitrator determines that it would be manifestly unfair to honor this agreement of the Parties and determine a different allocation of costs. The prevailing Party shall be awarded its reasonable attorneys’ fees and costs.

 

(f)     Pending final resolution of any Dispute, the Parties shall continue to perform their respective obligations under this Agreement that are not in Dispute.

 

Article 18

General Provisions

 

Section 18.1     Applicable Law. This Agreement is made under and shall be governed by and construed in accordance with the substantive laws of the State of New York, without giving effect to any choice of law rule (except Section 5-1401 of the New York General Obligations Law) that would cause the application of the laws of any jurisdiction other than the internal laws of the State of New York.

 

Section 18.2     Waiver of Jury Trial. The Parties hereto hereby knowingly, voluntarily and intentionally waive, to the fullest extent permitted by Applicable Law, any rights they may have to a trial by jury in respect of any litigation based hereon, or directly or indirectly arising out of, under, or in connection with, this Agreement or any other document delivered in connection herewith, or any course of conduct, course of dealing, statements (whether oral or written) or actions of the Parties hereto.

 

Section 18.3     Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof (provided the substance of the agreement between the Parties is not thereby materially altered), and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by Applicable Laws, the Parties hereto hereby waive any provision of Applicable Law which renders any provision hereof prohibited or unenforceable in any respect.

 

Section 18.4     Waiver. No delay or omission by a Party in exercising any right or remedy provided for herein shall constitute a waiver of such right or remedy nor shall it be construed as a bar to or waiver of any such right or remedy on any future occasion. Any waiver authorized on one occasion must be made in writing and is effective only in that instance and only for the purpose stated, and does not operate as a waiver on any future occasion.

 

35

 

 

Section 18.5     Assignment.

 

(a)     Neither Party may assign its obligations under this Agreement in whole or in part without the prior written consent of the other party, which consent shall not be unreasonably withheld.

 

(b)     Notwithstanding the foregoing, (i) each Party may, without the prior written consent of the other Party, assign this Agreement in whole or in part to (A) any Affiliate of such Party or (B) any Person acquiring all or substantially all of the assets of such Party and (ii) Seller may, without the prior written consent of Buyer, assign this Agreement in whole or in part to any Person acquiring all or substantially all of the assets comprising the Expansion Project.

 

(c)     In addition, Seller may, without the prior written consent of Buyer, assign this Agreement in whole or in part to any Person providing financing or other security in connection with any of the Production Facilities.

 

(d)     In the case of any assignment pursuant to Section 18.5(b), the assigning Party shall be relieved of its obligations hereunder so long as the assignee shall have expressly agreed to assume such obligations (whether arising before or after such assignment); provided, that the assigning Party shall not then be in default of this Agreement; and provided further, that in the case of an assignment by Buyer, that the proposed assignee shall satisfy as of the time of such assignment all of the credit support requirements of this Agreement.

 

Section 18.6     Notices.

 

(a)     All notices and communications required to be given pursuant to this Agreement shall be:

 

(i)     in writing;

 

(ii)     delivered by hand (against receipt), recorded courier or express service, or sent by electronic mail; provided that any communications delivered by electronic mail shall be in a portable document format (PDF); and

 

(iii)     delivered, sent or transmitted to the address for the recipient’s communications as stated below; provided that:

 

(1)     if the recipient gives the other Party notice of another address, communications shall thereafter be delivered accordingly; and

 

(2)     if the recipient has not stated otherwise when requesting an approval or consent, it may be sent to the address from which the request was issued.

 

36

 

 

(b)     Any such notice and communication shall be deemed to have been received by a Party as follows:

 

(i)     if delivered by hand or delivered by courier or express service, at the time of delivery; or

 

(ii)     if sent by electronic mail properly addressed and dispatched, upon transmission, if during the recipient’s regular business hours, and otherwise, on the next Business Day, provided that in either case such notice shall not be effective unless a copy of such notice shall be sent concurrently by registered or certified mail, return receipt requested, postage prepaid.

 

(c)     Subject to Section 18.6(a), the addresses for notices shall be as follows:

 

In the case of Seller, to:

 

Gevo Inc.

345 Inverness Drive South

Building C, Suite 310

Englewood, Colorado 80112

Attention: Tim Cesarek

Email: tcesarek@gevo.com

 

With a copy to:

 

Gevo Inc.

345 Inverness Drive South

Building C, Suite 310

Englewood, Colorado 80112

Attention: General Counsel

Email: gwilliams@gevo.com

 

In the case of Buyer, to:

 

HCS Group GmbH

Edmund-Rumpler-Straße 3

D-60549 Frankfurt

Germany

Attention: Henrik Krüpper

Email: hkruepper@h-c-s-group.com

 

With a copy to:

 

HCS Group GmbH

Edmund-Rumpler-Straße 3

D-60549 Frankfurt

Germany

Attention: Alexandra Botez / Legal Counsel

Email: abotez@h-c-s-group.com

 

37

 

 

Section 18.7     Conflicts of Interest. Conflicts of interest related to this Agreement are strictly prohibited. Except as otherwise expressly provided herein, neither Party, nor any director, employee or agent of a Party, shall give to or receive from any director, employee or agent of the other Party any gift, entertainment or other favor of significant value, or any commission, fee or rebate. Likewise, neither Party, nor any director, employee or agent of a Party shall enter into any business arrangement with any director, employee or agent of the other Party (or any affiliate), unless such Person is acting for and on behalf of the other Party, without prior written notification thereof to the other Party.

 

Section 18.8     Entire Agreement/Modification. This Agreement shall constitute the entire understanding between the Parties with respect to all matters and things herein mentioned and supersede any previous or contemporaneous agreements or understandings between the Parties. It is expressly acknowledged and agreed by and between the Parties that neither Party is now relying upon any collateral, prior or contemporaneous agreement, assurance, representation or warranty, written or oral, pertaining to the subject matter contained herein. This Agreement shall not be modified or changed except by written instrument executed by the duly authorized representatives of the Parties.

 

Section 18.9     Status of the Parties. Nothing in this Agreement shall be construed to constitute either Party as a joint venturer, co-venturer, joint lessor, joint operator or partner of the other. In performing services pursuant to this Agreement, Seller is acting solely as an independent contractor maintaining complete control over its employees and operations. Unless otherwise provided in this Agreement, neither Buyer nor Seller is authorized to take any action in any way whatsoever for or on behalf of the other.

 

Section 18.10     Confidentiality.

 

(a)     A Party receiving Confidential Information shall: (i) treat such Confidential Information as confidential and use reasonable care not to divulge such information to another Person (except for lenders, counsel and other consultants acting at the request of the receiving Party in connection with the Production Facilities or this Agreement, and provided that such Persons (including Affiliates) are under an obligation of confidentiality or have executed a written agreement agreeing to be bound by the provisions of this Section 18.10), such care to be commensurate, at a minimum, with the care exercised by each of Seller and Buyer for protection of its confidential information of a similar nature to the Confidential Information; (ii) restrict access to Confidential Information to personnel who reasonably require such information in connection with this Agreement; (iii) not make any copies of the other Party’s Confidential Information unless approved in writing by the other Party, and, if approval is given, will reproduce the other Party’s proprietary rights notices on any approved copies; and (iv) restrict the use of such Confidential Information to matters related to the performance of this Agreement.

 

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(b)     Nothing in this Agreement is intended to or shall be construed as granting to any Party any license or right under any patent, copyright, or other intellectual property right of the other Party, nor shall this Agreement impair the right of any Party to contest the scope, validity, or alleged infringement of any patent or copyright. This Agreement shall not grant any Party any rights in or to the Confidential Information of the other Party, except as expressly set forth in this Agreement.

 

(c)     At any time upon written request by the disclosing Party, the other Party shall promptly return to the disclosing Party all its Confidential Information, including all copies thereof; provided that the other Party shall be entitled to keep one (1) copy of such Confidential Information for its legal records. The return of Confidential Information to the disclosing Party or the retention of a copy of Confidential Information for legal records shall not release a Party from its obligations hereunder with respect to such Confidential Information.

 

(d)     Each Party agrees that the other Party shall be entitled to injunctive relief in the event of any breach or anticipated breach of this Section 18.10, without proof of any actual or special damages.

 

(e)     To the extent permitted by Applicable Law, the contents of this Agreement shall be considered confidential, and neither Party shall disclose the provisions of this Agreement or the Agreement in its entirety to another Person without the other Party’s prior written consent. The Parties acknowledge that this Agreement will be disclosed publicly pursuant to the rules and regulations of the U.S. Securities and Exchange Commission and may be made available for public comment; however, if disclosure is required, the Parties will use their best efforts to secure redaction of commercial terms to the extent permitted by Applicable Law.

 

(f)     The provisions of this Section 18.10 shall survive any expiration or termination of this Agreement for a period of two (2) years.

 

Section 18.11     Publicity and Announcements. Notwithstanding Section 18.10, Seller and Buyer agree to publicly disclose, via a mutually agreed upon press release, aspects of the commercial plan for Buyer to serve as a major purchaser of Renewable Isooctane from the Production Facilities. Seller and Buyer agree to evaluate options to make such disclosure most impactful and provide maximum credibility for Seller’s technology. Each Party shall coordinate with the other Party with respect to, and provide advance copies to the other Party for review of, the text of any proposed announcement or publication that include any non-public information concerning the Production Facilities or this Agreement prior to the dissemination thereof to the public or to any Person other than employees, representatives, agents, advisors, contractors or subcontractors of any tier, and in each case, who agree to keep such information confidential. Neither Party shall make a public announcement or publication until the other Party approves such announcement or publication.

 

39

 

 

Section 18.12     Support of Financing Efforts. Buyer acknowledges that Seller may elect to finance all or part of its costs of the transactions contemplated by this Agreement, including the costs of the construction of the Production Facilities. Buyer agrees to provide such assistance as Seller may reasonably request in connection with such financing. In furtherance of the foregoing, Buyer agrees that it will not unreasonably withhold its consent to a customary collateral assignment for security purposes of this Agreement for the benefit of such Person(s) providing such financing, as may be reasonably necessary and appropriate for such financing, provided that, except with respect to reasonable credit support terms to be negotiated by the Parties as set forth in Section 3.5, none of the terms of such consent shall: (i) relieve Seller of any of its obligations under this Agreement; (ii) decrease the economic benefits, or increase the costs, of the transactions contemplated by this Agreement to Buyer; or (iii) create increased economic or legal risk to Buyer in connection with the transactions contemplated by this Agreement.

 

Section 18.13     Buyer’s Financial Statements.

 

(a)     Prior to Financial Closing, if requested by Seller, promptly following such request, Buyer shall provide Seller with copies of Buyer’s most recent annual audited financial statements within one hundred eighty (180) days of its fiscal year end for each year during the term of this Agreement.

 

(b)     All such financial information made available under this Section 18.13, if not publicly available, shall be treated as Confidential Information in accordance with Section 18.10 of this Agreement.

 

Section 18.14     Further Assurances. Each Party shall provide such information, execute and deliver any instruments and documents and take such other actions as may be reasonably necessary or reasonably requested by the other Party that are not inconsistent with the provisions of this Agreement and that do not involve the assumptions of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement.

 

Section 18.15     Survival. The provisions of Article 14, Article 15, Article 16, Article 17 and Article 18 shall survive termination or expiration of this Agreement, including termination pursuant to Section 2.2.

 

Section 18.16     Counterparts. This Agreement may be executed in multiple counterparts, each of which when so executed and delivered shall constitute a duplicate original and all counterparts together shall constitute one and the same instrument. The Parties acknowledge and agree that any document or signature delivered by facsimile, PDF or other electronic transmission shall be deemed to be an original executed document for the purposes hereof and such execution and delivery shall be considered valid, binding and effective for all purposes. 

 

(The Remainder of this Page Left Blank Intentionally)

 

40

 

 

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

 

 

 

	GEVO, INC. 	 	HCS GROUP GmbH	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Patrick R. Gruber	 	/s/ Dr. Uwe Nickel	 
	Name: Patrick R. Gruber 	 	Name: Dr. Uwe Nickel	 
	Title: Chief Executive Officer	 	Title: Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	/s/ Henrik Krüpper	 
	 	 	Name: Henrik Krüpper	 
	 	 	Title: Chief Commercial Officer	 

 

                             

 

 

 

                   

               

 

                                                   

                                             

 

 

 

 

 

Signature Page – Renewable Isooctane Purchase and Sale Agreement

 

 

 

 

ATTACHMENT A

 

RENEWABLE ISOOCTANE SPECIFICATIONS

 

 

 

 

 

 

 

Attachment A | Page 1

 

 

 

 

 

 

 

 

 

     Product 

Specifications

 

 

[**]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[**] - Indicates certain information has been redacted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the redacted portions.

 

Attachment A | Page 2

 

 

ATTACHMENT B

 

FORM OF JOINDER AGREEMENT

 

This Joinder Agreement (the “Joinder Agreement”) is made and entered into by and between GEVO, Inc., a Delaware corporation having its principal office at 345 Inverness Drive South, Building C, Suite 310, Englewood, Colorado 80112 (“Seller”) and [               ], a [             ] having its principal office at [                                 ] (“Additional Buyer”). Seller and Additional Buyer may be referred to individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, Seller and HCS GROUP GmbH, a German corporation having its principal office at Hamburg-Mitte, Schlengendeich 17, 21107 Hamburg, Germany (“Buyer”), are parties to that certain Renewable Isooctane Purchase and Sale Agreement, dated February 21, 2019 (the “Agreement”); and

 

WHEREAS, Additional Buyer is a Subsidiary of Buyer; and

 

WHEREAS, in accordance with and pursuant to Section 3.8 of the Agreement, Additional Buyer desires to become a party to the Agreement and to adopt the terms and conditions thereof, and consequently Seller and Additional Buyer wish to enter into this Joinder Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants and premises contained herein, the Parties agree as follows:

 

	
			1. 

				
			Adoption of the Agreement

			

 

	
			1.1

				
			Additional Buyer hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, Additional Buyer shall be deemed a party to the Agreement for all purposes of the Agreement, and shall have all of the obligations of a “Buyer” under the Agreement, as though an original party to the Agreement. Additional Buyer hereby ratifies, as of the date hereof, and agrees to be bound by, and subject to, all of the covenants, terms, provisions and conditions applicable to “Buyer” contained in the Agreement. The terms and conditions as set out in the Agreement are incorporated herein by reference and are made applicable between the Parties.

			

 

	
			1.2

				
			Without limiting the generality of the foregoing, Additional Buyer hereby represents and warrants that each of the representations and warranties of “Buyer” contained in the Agreement is true and correct as of the date of the execution and delivery of this Joinder Agreement, all as representations and warranties of Additional Buyer.

			

 

	
			2. 

				
			Miscellaneous

			

 

	
			2.1

				
			This Joinder Agreement is made under and shall be governed by and construed in accordance with the substantive laws of the State of New York, without giving effect to any choice of law rule (except Section 5-1401 of the New York General Obligations Law) that would cause the application of the laws of any jurisdiction other than the internal laws of the State of New York.

			

 

	
			2.2

				
			This Joinder Agreement shall constitute the entire understanding between the Parties with respect to all matters and things herein mentioned and supersede any previous or contemporaneous agreements or understandings between the Parties. It is expressly acknowledged and agreed by and between the Parties that neither Party is now relying upon any collateral, prior or contemporaneous agreement, assurance, representation or warranty, written or oral, pertaining to the subject matter contained herein. This Agreement shall not be modified or changed except by written instrument executed by the duly authorized representatives of the Parties.

			

 

	
			2.3

				
			Each Party shall provide such information, execute and deliver any instruments and documents and take such other actions as may be reasonably necessary or reasonably requested by the other Party that are not inconsistent with the provisions of this Joinder Agreement and that do not involve the assumptions of obligations other than those provided for in this Joinder Agreement, in order to give full effect to this Joinder Agreement and to carry out the intent of this Agreement.

			

 

	
			2.4

				
			This Joinder Agreement may be executed in multiple counterparts, each of which when so executed and delivered shall constitute a duplicate original and all counterparts together shall constitute one and the same instrument. The Parties acknowledge and agree that any document or signature delivered by facsimile, PDF or other electronic transmission shall be deemed to be an original executed document for the purposes hereof and such execution and delivery shall be considered valid, binding and effective for all purposes.

			

 

(The Remainder of this Page Left Blank Intentionally)

 

 

Attachment B | Page 1

 

 

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

 

	
			GEVO, INC.

			 

			as “Seller”

				 	
			[                                      ]

			 

			as “Additional Buyer”

			
	 	 	 
	 	 	 
	
			By:

				 	 	
			By:

				 
	
			Name:

				 	 	
			Name:

				 
	
			Title:

				 	 	
			Title:

				 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page – Joinder AgreementEX-4.1

 Exhibit 4.1 

JN PROJECTS, INC. 
 2011
EQUITY INCENTIVE PLAN 
 As Adopted on July 19, 2011 

As Amended on March 31, 2016 

As Amended on May 19, 2017 

As Amended on September 13, 2017 

1. PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons
whose present and potential contributions are important to the success of the Company, its Parent and Subsidiaries by offering eligible persons an opportunity to participate in the Company’s future performance through the grant of Awards
covering Shares. Capitalized terms not defined in the text are defined in Section 14 hereof. Although this Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701, grants may be made pursuant to this Plan
that do not qualify for exemption under Rule 701 or Section 25102(o). Any requirement of this Plan that is required in law only because of Section 25102(o) need not apply if the Committee so provides. 

2. SHARES SUBJECT TO THE PLAN. 

2.1 Number of Shares Available. Subject to Sections 2.2 and 11 hereof, the total number of Shares reserved
and available for grant and issuance pursuant to this Plan will be 3,836,206 Shares. Subject to Sections 2.2 and 11 hereof, Shares subject to Awards that are cancelled, forfeited, settled in cash, used to pay withholding obligations or pay the
exercise price of an Option or that expire by their terms at any time will again be available for grant and issuance in connection with other Awards. In the event that Shares previously issued under the Plan are reacquired by the Company pursuant to
a forfeiture provision, right of first refusal, or repurchase by the Company, such Shares shall be added to the number of Shares then available for issuance under the Plan. At all times the Company will reserve and keep available a sufficient number
of Shares as will be required to satisfy the requirements of all Awards granted and outstanding under this Plan. In no event shall the total number of Shares issued (counting each reissuance of a Share that was previously issued and then forfeited
or repurchased by the Company as a separate issuance) under the Plan upon exercise of ISOs exceed 7,672,412 Shares (adjusted in proportion to any adjustments under Section 2.2 hereof) over the term of the Plan (the “ISO
Limit”). Subject to Sections 2.2 and 11 hereof, in the event that the number of Shares reserved for issuance under the Plan is increased, the ISO Limit shall be automatically increased by such number of Shares such that the ISO Limit
equals (a) two (2) multiplied by (b) the number of Shares reserved for issuance under the Plan. 
 2.2 Adjustment of
Shares. In the event that the number of outstanding shares of the Company’s Common Stock is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or other
change in the capital structure of the Company affecting Shares without consideration, then in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan (a) the number of
Shares reserved for issuance under this Plan, (b) the Exercise Prices of and number of Shares subject to outstanding Options and SARs, and (c) the Purchase 

  
 1 

 
Prices of and/or number of Shares subject to other outstanding Awards will (to the extent appropriate) be proportionately adjusted, subject to any required action by the Board or the stockholders
of the Company and compliance with applicable securities laws; provided, however, that fractions of a Share will not be issued but will either be paid in cash at the Fair Market Value of such fraction of a Share or will
be rounded down to the nearest whole Share, as determined by the Committee. 
 3. PLAN FOR BENEFIT OF SERVICE PROVIDERS. 

3.1 Eligibility. The Committee will have the authority to select persons to receive Awards. ISOs (as defined in
Section 4 hereof) may be granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or Subsidiary of the Company. NQSOs (as defined in Section 4 hereof) and all other types of Awards
may be granted to employees, officers, directors and consultants of the Company or any Parent or Subsidiary of the Company; provided such consultants render bona fide services not in connection with the offer and sale of securities in
a capital-raising transaction when Rule 701 is to apply to the Award granted for such services. A person may be granted more than one Award under this Plan. 

3.2 No Obligation to Employ. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to
confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent or Subsidiary or limit in any way the right of the Company or any Parent or Subsidiary to terminate
Participant’s employment or other relationship at any time, with or without Cause. 
 4. OPTIONS. The
Committee may grant Options to eligible persons described in Section 3 hereof and will determine whether such Options will be Incentive Stock Options within the meaning of the Code (“ISOs”) or Nonqualified Stock Options
(“NQSOs”), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following. 

4.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an Award Agreement which will
expressly identify the Option as an ISO or an NQSO (“Stock Option Agreement”), and will be in such form and contain such provisions (which need not be the same for each Participant) as the Committee may from time to time
approve, and which will comply with and be subject to the terms and conditions of this Plan. 
 4.2 Date of
Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option, unless a later date is otherwise specified by the Committee. The Stock Option Agreement and a copy of this
Plan will be delivered to the Participant within a reasonable time after the granting of the Option. 
 4.3 Exercise
Period. Options may be exercisable within the time or upon the events determined by the Committee in the Award Agreement and may be awarded as immediately exercisable but subject to repurchase pursuant to Section 10 hereof or may
be exercisable within the times or upon the events determined by the Committee as set forth in the 

  
 2 

 
Stock Option Agreement governing such Option; provided, however, that (a) no Option will be exercisable after the expiration of ten (10) years from the date
the Option is granted; and (b) no ISO granted to a person who directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Parent or Subsidiary (“Ten
Percent Stockholder”) will be exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable at one time or from time to time, periodically or
otherwise, in such number of Shares or percentage of Shares as the Committee determines. 
 4.4 Exercise Price.
The Exercise Price of an Option will be determined by the Committee when the Option is granted and shall not be less than the Fair Market Value per Share unless expressly determined in writing by the Committee on the Option’s date of grant;
provided that the Exercise Price of an ISO granted to a Ten Percent Stockholder will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased must be
made in accordance with Section 8 hereof. 
 4.5 Method of Exercise. Options may be exercised only by
delivery to the Company of a stock option exercise agreement (the “Exercise Agreement”) in the form specified by the Committee, which may be electronic or written form (and which need not be the same for each Participant).
The Exercise Agreement will state (a) the number of Shares being purchased, (b) the restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and (c) such representations and agreements regarding
Participant’s investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable securities laws. Each Participant’s Exercise Agreement may be modified by
(i) agreement of Participant and the Company or (ii) substitution by the Company, upon becoming a public company, in order to add the payment terms set forth in Section 8.1 that apply to a public company and such other terms as shall
be necessary or advisable in order to exercise a public company option. Upon exercise of an Option, Participant shall execute and deliver to the Company the Exercise Agreement then in effect, together with payment in full of the Exercise Price for
the number of Shares being purchased and payment of any applicable taxes. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 2.2 of the
Plan. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 

4.6 Termination. Subject to earlier termination pursuant to Sections 11 and 13.3 hereof and notwithstanding
the exercise periods set forth in the Stock Option Agreement, exercise of an Option will always be subject to the following terms and conditions. 

4.6.1 Other than Death or Disability or for Cause. If the Participant is Terminated for any reason other than death, Disability or for
Cause, then the Participant may exercise such Participant’s Options only to the extent that such Options are exercisable as to Vested Shares upon the Termination Date or as otherwise determined by the Committee. Such Options must be exercised
by the Participant, if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within three (3) months after the Termination Date (or within such shorter time period,
not less than thirty (30) days, or within such longer time period after the Termination Date as may be determined by the Committee, with any exercise beyond three (3) months after the date Participant ceases to be an employee deemed to be
an NQSO) but in any event, no later than the expiration date of the Options. 

  
 3 

 4.6.2 Death or Disability. If the Participant is Terminated because of
Participant’s death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause), then Participant’s Options may be exercised only to the extent that such Options are exercisable as to
Vested Shares by Participant on the Termination Date or as otherwise determined by the Committee. Such options must be exercised by Participant (or Participant’s legal representative or authorized assignee), if at all, as to all or some of the
Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months, or within such
longer time period, after the Termination Date as may be determined by the Committee, with any exercise beyond (a) three (3) months after the date Participant ceases to be an employee when the Termination is for any reason other than the
Participant’s death or disability, within the meaning of Section 22(e)(3) of the Code, or (b) twelve (12) months after the date Participant ceases to be an employee when the Termination is for Participant’s disability,
within the meaning of Section 22(e)(3) of the Code, deemed to be an NQSO) but in any event no later than the expiration date of the Options. 

4.6.3 For Cause. If the Participant is terminated for Cause, the Participant may exercise such Participant’s Options, but not to
an extent greater than such Options are exercisable as to Vested Shares upon the Termination Date and Participant’s Options shall expire on such Participant’s Termination Date, or at such later time and on such conditions as are determined
by the Committee. 
 4.7 Limitations on Exercise. The Committee may specify a reasonable minimum number of
Shares that may be purchased on any exercise of an Option, provided that such minimum number will not prevent Participant from exercising the Option for the full number of Shares for which it is then exercisable. 

4.8 Limitations on ISOs. The aggregate Fair Market Value (determined as of the date of grant) of Shares with
respect to which ISOs are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other incentive stock option plan of the Company or any Parent or Subsidiary of the Company) will not exceed One Hundred
Thousand Dollars ($100,000). If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first time by a Participant during any calendar year exceeds One Hundred Thousand Dollars ($100,000), then the
Options for the first One Hundred Thousand Dollars ($100,000) worth of Shares to become exercisable in such calendar year will be ISOs and the Options for the amount in excess of One Hundred Thousand Dollars ($100,000) that become exercisable in
that calendar year will be NQSOs. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date (as defined in Section 13.1 hereof) to provide for a different limit on the Fair Market Value of Shares
permitted to be subject to ISOs, then such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment. 

  
 4 

 4.9 Modification, Extension or Renewal. The Committee may
modify, extend or renew outstanding Options and authorize the grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant’s
rights under any Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to Section 4.10 hereof, the Committee may
reduce the Exercise Price of outstanding Options without the consent of Participants by a written notice to them; provided, however, that the Exercise Price may not be reduced below the minimum Exercise Price that would
be permitted under Section 4.4 hereof for Options granted on the date the action is taken to reduce the Exercise Price. 
 4.10
No Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so
as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant, to disqualify any Participant’s ISO under Section 422 of the Code. 

5. RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company to sell to an eligible person Shares that
are subject to certain specified restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may purchase, the Purchase Price, the restrictions to which the Shares will be subject, and all other terms
and conditions of the Restricted Stock Award, subject to the following terms and conditions. 
 5.1 Form of Restricted Stock
Award. All purchases under a Restricted Stock Award made pursuant to this Plan will be evidenced by an Award Agreement (“Restricted Stock Purchase Agreement”) that will be in such form (which need not be the
same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. The Restricted Stock Award will be accepted by the Participant’s execution and delivery of
the Restricted Stock Purchase Agreement and full payment for the Shares to the Company within thirty (30) days from the date the Restricted Stock Purchase Agreement is delivered to the person in electronic or written form. If such person does
not execute and deliver the Restricted Stock Purchase Agreement along with full payment for the Shares to the Company within such thirty (30) days, then the offer will terminate, unless otherwise determined by the Committee. 

5.2 Purchase Price. The Purchase Price of Shares sold pursuant to a Restricted Stock Award will be determined by
the Committee on the date the Restricted Stock Award is granted or at the time the purchase is consummated. Payment of the Purchase Price must be made in accordance with Section 8 hereof. 

5.3 Dividends and Other Distributions. Participants holding Restricted Stock will be entitled to receive all
dividends and other distributions paid with respect to such Shares, unless the Committee provides otherwise at the time of award. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on
transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 

  
 5 

 5.4 Restrictions. Restricted Stock Awards may be subject to the
restrictions set forth in Sections 9 and 10 hereof or, with respect to a Restricted Stock Award to which Section 25102(o) is to apply, such other restrictions not inconsistent with Section 25102(o). 

6. RESTRICTED STOCK UNITS. 

6.1 Awards of Restricted Stock Units. A Restricted Stock Unit (“RSU”) is an Award covering
a number of Shares that may be settled in cash, or by issuance of those Shares at a date in the future. No Purchase Price shall apply to an RSU settled in Shares. All grants of Restricted Stock Units will be evidenced by an Award Agreement that will
be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. No RSU will have a term longer than ten (10) years
from the date the RSU is granted. 
 6.2 Form and Timing of Settlement. To the extent permissible under
applicable law, the Committee may permit a Participant to defer payment under a RSU to a date or dates after the RSU is earned, provided that the terms of the RSU and any deferral satisfy the requirements of Section 409A of the
Code (or any successor) and any regulations or rulings promulgated thereunder. Payment may be made in the form of cash or whole Shares or a combination thereof, all as the Committee determines. 

6.3 Dividend Equivalent Payments. The Board may permit Participants holding RSUs to receive dividend equivalent
payments on outstanding RSUs if and when dividends are paid to stockholders on Shares. In the discretion of the Board, such dividend equivalent payments may be paid in cash or Shares and they may either be paid at the same time as dividend
payments are made to stockholders or delayed until when Shares are issued pursuant to the RSU grants and may be subject to the same vesting requirements as the RSUs. If the Board permits dividend equivalent payments to be made on RSUs, the
terms and conditions for such payments will be set forth in the Award Agreement. 
 7. STOCK APPRECIATION RIGHTS. 

7.1 Awards of SARs. Stock Appreciation Rights (“SARs”) may be settled in cash, or Shares
(which may consist of Restricted Stock or RSUs), having a value equal to the value determined by multiplying the difference between the Fair Market Value on the date of exercise over the Exercise Price and the number of Shares with respect to which
the SAR is being settled. All grants of SARs made pursuant to this Plan will be evidenced by an Award Agreement that will be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and will
comply with and be subject to the terms and conditions of this Plan. 
 7.2 Exercise Period and Expiration Date.
A SAR will be exercisable within the times or upon the occurrence of events determined by the Committee and set forth in the Award Agreement governing such SAR. The Award Agreement shall set forth the Expiration Date; provided that
no SAR will be exercisable after the expiration of ten years from the date the SAR is granted. 

  
 6 

 7.3 Exercise Price. The Committee will determine the Exercise
Price of the SAR when the SAR is granted, and which may not be less than the Fair Market Value on the date of grant and may be settled in cash or in Shares. 

7.4 Termination. Subject to earlier termination pursuant to Sections 11 and 13.1 hereof and notwithstanding
the exercise periods set forth in the Award Agreement, exercise of SARs will always be subject to the following terms and conditions. 

7.4.1 Other than Death or Disability or for Cause. If the Participant is Terminated for any reason other than death, Disability or for
Cause, then the Participant may exercise such Participant’s SARs only to the extent that such SARs are exercisable as to Vested Shares upon the Termination Date or as otherwise determined by the Committee. SARs must be exercised by the
Participant, if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within three (3) months after the Termination Date (or within such shorter time period, not
less than thirty (30) days, or within such longer time period after the Termination Date as may be determined by the Committee) but in any event, no later than the expiration date of the SARs. 

7.4.2 Death or Disability. If the Participant is Terminated because of Participant’s death or Disability (or the Participant dies
within three (3) months after a Termination other than for Cause), then Participant’s SARs may be exercised only to the extent that such SARs are exercisable as to Vested Shares by Participant on the Termination Date or as otherwise
determined by the Committee. Such SARs must be exercised by Participant (or Participant’s legal representative or authorized assignee), if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date
determined by the Committee, within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months, or within such longer time period after the Termination Date as may be determined by the
Committee) but in any event no later than the expiration date of the SARs. 
 7.4.3 For Cause. If the Participant is terminated for
Cause, the Participant may exercise such Participant’s SARs, but not to an extent greater than such SARs are exercisable as to Vested Shares upon the Termination Date and Participant’s SARs shall expire on such Participant’s
Termination Date, or at such later time and on such conditions as are determined by the Committee. 
 8. PAYMENT FOR PURCHASES AND
EXERCISES. 
 8.1 Payment in General. Payment for Shares acquired pursuant to this Plan may be made in
cash (by check) or, where expressly approved for the Participant by the Committee and where permitted by law: 
 (a) by cancellation of
indebtedness of the Company owed to the Participant; 
 (b) by surrender of shares of the Company that are clear of all liens, claims,
encumbrances or security interests and: (i) for which the Company has received “full payment of the purchase price” within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory
note, such note has been fully paid with respect to such shares) or (ii) that were obtained by Participant in the public market; 

  
 7 

 (c) by tender of a full recourse promissory note having such terms as may be approved by
the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code; provided, however, that Participants who are not employees or directors of the Company
will not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the Shares; provided, further, that the portion of the Exercise Price or Purchase Price, as the
case may be, equal to the par value (if any) of the Shares must be paid in cash or other legal consideration permitted by the laws under which the Company is then incorporated or organized; 

(d) by waiver of compensation due or accrued to the Participant from the Company for services rendered; 

(e) by participating in a formal cashless exercise program implemented by the Committee in connection with the Plan; 

(f) subject to compliance with applicable law, provided that a public market for the Company’s Common Stock exists, by exercising
through a “same day sale” commitment from the Participant and a broker-dealer whereby the Participant irrevocably elects to exercise the Award and to sell a portion of the Shares so purchased sufficient to pay the total Exercise Price or
Purchase Price, and whereby the broker-dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price or Purchase Price directly to the Company; or 

(g) by any combination of the foregoing or any other method of payment approved by the Committee. 

8.2 Withholding Taxes. 

8.2.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards granted under this Plan, the Company may
require the Participant to remit to the Company an amount sufficient to satisfy applicable tax withholding requirements prior to the delivery of any certificate or certificates for such Shares. Whenever, under this Plan, payments in satisfaction of
Awards are to be made in cash by the Company, such payment will be net of an amount sufficient to satisfy applicable tax withholding requirements. 

8.2.2 Stock Withholding. When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise or
vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required to be withheld, the Committee may in its sole discretion allow the Participant to satisfy the minimum tax withholding
obligation by electing to have the Company withhold from the Shares to be issued up to the minimum number of Shares having a Fair Market Value on the date that the amount of tax to be withheld is to be determined that is not more than the minimum
amount to be withheld; or to arrange a mandatory “sell to cover” on Participant’s behalf (without further authorization) but in no event will the Company withhold Shares or “sell to cover” if such withholding would result in
adverse accounting consequences to the Company. Any elections to have Shares withheld or sold for this purpose will be made in accordance with the requirements established by the Committee for such elections and be in writing in a form acceptable to
the Committee. 

  
 8 

 9. RESTRICTIONS ON AWARDS. 

9.1 Transferability. Except as permitted by the Committee, Awards granted under this Plan, and any interest
therein, will not be transferable or assignable by Participant, other than by will or by the laws of descent and distribution, and, with respect to NQSOs, by instrument to an inter vivos or testamentary trust in which the NQSOs are to be passed to
beneficiaries upon the death of the trustor (settlor), or by gift to “family member” as that term is defined in Rule 701, and may not be made subject to execution, attachment or similar process. For the avoidance of doubt, the prohibition
against assignment and transfer applies to a stock option and, prior to exercise, the shares to be issued on exercise of a stock option, and pursuant to the foregoing sentence shall be understood to include, without limitation, a prohibition against
any pledge, hypothecation, or other transfer, including any short position, any “put equivalent position” or any “call equivalent position” (in each case, as defined in Rule 16a-1
promulgated under the Exchange Act). Unless an Award is transferred pursuant to the terms of this Section, during the lifetime of the Participant an Award will be exercisable only by the Participant or Participant’s legal representative and any
elections with respect to an Award may be made only by the Participant or Participant’s legal representative. The terms of an Option shall be binding upon the executor, administrator, successors and assigns of the Participant who is a party
thereto. 
 9.2 Securities Law and Other Regulatory Compliance. Although this Plan is intended to be a written
compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act, grants may be made pursuant to this Plan that do not qualify for exemption under Rule 701 or Section 25102(o). Any requirement of this Plan
which is required in law only because of Section 25102(o) need not apply with respect to a particular Award to which Section 25102(o) will not apply. An Award will not be effective unless such Award is in compliance with all applicable
federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the date of
grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to (a) obtaining any
approvals from governmental agencies that the Company determines are necessary or advisable, and/or (b) compliance with any exemption, completion of any registration or other qualification of such Shares under any state or federal law or ruling
of any governmental body that the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the exemption, registration, qualification or listing
requirements of any state securities laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure so do. 

9.3 Exchange and Buyout of Awards. The Committee may, at any time or from time to time, authorize the Company,
with the consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards. Without prior stockholder approval the Committee may reprice Options or SARs (and

  
 9 

 
where such repricing is a reduction in the Exercise Price of outstanding Options or SARs, the consent of the affected Participants is not required provided written notice is provided to them).
The Committee may at any time buy from a Participant an Award previously granted with payment in cash, Shares (including Restricted Stock) or other consideration, based on such terms and conditions as the Committee and the Participant may agree.

 10. RESTRICTIONS ON SHARES. 

10.1 Privileges of Stock Ownership. No Participant will have any of the rights of a stockholder with respect to
any Shares until such Shares are issued to the Participant. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and
receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive
with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock. The Participant will have no right to
retain such stock dividends or stock distributions with respect to Unvested Shares that are repurchased as described in this Section 10. 

10.2 Rights of First Refusal and Repurchase. At the discretion of the Committee, the Company may reserve to itself
and/or its assignee(s) in the Award Agreement (a) a right of first refusal to purchase all Shares that a Participant (or a subsequent transferee) may propose to transfer to a third party, provided that such right of first refusal
terminates upon the Company’s initial public offering of Common Stock pursuant to an effective registration statement filed under the Securities Act and (b) a right to repurchase Unvested Shares held by a Participant for cash and/or
cancellation of purchase money indebtedness owed to the Company by the Participant following such Participant’s Termination at any time. 

10.3 Escrow; Pledge of Shares. To enforce any restrictions on a Participant’s Shares, the Committee may
require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company
to hold in escrow until such restrictions have lapsed or terminated. The Committee may cause a legend or legends referencing such restrictions to be placed on the certificate. Any Participant who is permitted to execute a promissory note as partial
or full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of Participant’s obligation to the Company under
the promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of the Participant’s Shares or other collateral. In connection with any pledge of the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve. The Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid. 

  
 10 

 10.4 Securities Law Restrictions. All certificates for Shares or
other securities delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign
securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted. 

11. CORPORATE TRANSACTIONS. 

11.1 Acquisitions or Other Combinations. In the event that the Company is subject to an Acquisition or Other
Combination, outstanding Awards acquired under the Plan shall be subject to the agreement evidencing the Acquisition or Other Combination, which need not treat all outstanding Awards in an identical manner. Such agreement, without the
Participant’s consent, shall provide for one or more of the following with respect to all outstanding Awards as of the effective date of such Acquisition or Other Combination: 

(a) The continuation of such outstanding Awards by the Company (if the Company is the successor entity). 

(b) The assumption of outstanding Awards by the successor or acquiring entity (if any) in such Acquisition or Other Combination (or by any of
its Parents, if any), which assumption, will be binding on all Participants; provided that the exercise price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that is subject to
Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) and Section 409A of the Code. For the purposes of this Section 11, an Award will be considered assumed if, following the Acquisition or Other
Combination, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Acquisition or Other Combination, the consideration (whether stock, cash, or other securities or property) received in the
Acquisition or Other Combination by holders of Shares for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the
outstanding Shares); provided, however, that if such consideration received in the Acquisition or Other Combination is not solely common stock of the successor corporation or its Parent, the Committee may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, for each Share subject to such Award, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Acquisition or Other Combination. 

(c) The substitution by the successor or acquiring entity in such Acquisition or Other Combination (or by any of its Parents, if any) of
equivalent awards with substantially the same terms for such outstanding Awards (except that the exercise price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that is subject
to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) and Section 409A of the Code). 

  
 11 

 (d) The full or partial exercisability or vesting and accelerated expiration of outstanding
Awards. 
 (e) The settlement of the full value of such outstanding Award (whether or not then vested or exercisable) in cash, cash
equivalents, or securities of the successor entity (or its Parent, if any) with a Fair Market Value equal to the required amount, followed by the cancellation of such Awards; provided however, that such Award may be cancelled without consideration
if such Award has no value, as determined by the Committee, in its discretion. Subject to Section 409A of the Code, such payment may be made in installments and may be deferred until the date or dates when the Award would have become
exercisable or vested. Such payment may be subject to vesting based on the Participant’s continued service, provided that without the Participant’s consent, the vesting schedule shall not be less favorable to the Participant than the
schedule under which the Award would have become vested or exercisable. For purposes of this Section 11.1(e), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security.

 (f) The cancellation of outstanding Awards in exchange for no consideration. 

Immediately following an Acquisition or Other Combination, outstanding Awards shall terminate and cease to be outstanding, except to the
extent such Awards, have been continued, assumed or substituted, as described in Sections 11.1(a), (b) and/or (c). 
 11.2
Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding awards granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by
either (a) granting an Award under this Plan in substitution of such other entity’s award or (b) assuming and/or converting such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an
Award granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other entity had applied the rules of this
Plan to such grant. In the event the Company assumes an award granted by another entity, the terms and conditions of such award will remain unchanged (except that the exercise price and the number and nature of shares issuable upon exercise of any
such option or stock appreciation right, or any award that is subject to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option or SAR rather
than assuming an existing option or stock appreciation right, such new Option or SAR may be granted with a similarly adjusted Exercise Price. 

12. ADMINISTRATION. 

12.1 Committee Authority. This Plan will be administered by the Committee or the Board if no Committee is created
by the Board. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan. Without limitation, the Committee will have the authority
to: 

  
 12 

 (a) construe and interpret this Plan, any Award Agreement and any other agreement or
document executed pursuant to this Plan; 
 (b) prescribe, amend, expand, modify and rescind or terminate rules and regulations relating to
this Plan; 
 (c) approve persons to receive Awards; 

(d) determine the form and terms of Awards; 

(e) determine the number of Shares or other consideration subject to Awards granted under this Plan; 

(f) determine the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of Fair Market
Value in connection with circumstances that impact the Fair Market Value, if necessary; 
 (g) determine whether Awards will be granted
singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under this Plan or awards under any other incentive or compensation plan of the Company or any Parent or Subsidiary of the Company; 

(h) grant waivers of any conditions of this Plan or any Award; 

(i) determine the terms of vesting, exercisability and payment of Awards to be granted pursuant to this Plan; 

(j) correct any defect, supply any omission, or reconcile any inconsistency in this Plan, any Award, any Award Agreement, any Exercise
Agreement or any Restricted Stock Purchase Agreement; 
 (k) determine whether an Award has been earned; 

(l) extend the vesting period beyond a Participant’s Termination Date; 

(m) adopt rules and/or procedures (including the adoption of any subplan under this Plan) relating to the operation and administration of the
Plan to accommodate requirements of local law and procedures outside of the United States; 
 (n) delegate any of the foregoing to a
subcommittee consisting of one or more executive officers pursuant to a specific delegation as may otherwise be permitted by applicable law; 

(o) change the vesting schedule of Awards under the Plan prospectively in the event that the Participant’s service status changes
between full and part time status in accordance with Company policies relating to work schedules and vesting of awards; and 
 (p) make all
other determinations necessary or advisable in connection with the administration of this Plan. 

  
 13 

 12.2 Committee Composition and Discretion. The Board may
delegate full administrative authority over the Plan and Awards to a Committee consisting of at least one member of the Board (or such greater number as may then be required by applicable law). Unless in contravention of any express terms of
this Plan or Award, any determination made by the Committee with respect to any Award will be made in its sole discretion either (a) at the time of grant of the Award, or (b) subject to Section 4.9 hereof, at any later time. Any such
determination will be final and binding on the Company and on all persons having an interest in any Award under this Plan. To the extent permitted by applicable law, the Committee may delegate to one or more officers of the Company the authority to
grant an Award under this Plan, provided that each such officer is a member of the Board. 
 12.3 Nonexclusivity
of the Plan. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the
Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock options and other equity awards otherwise than under this Plan, and such arrangements may be either generally
applicable or applicable only in specific cases. 
 12.4 Governing Law. This Plan and all agreements hereunder
shall be governed by and construed in accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws. 

13. EFFECTIVENESS, AMENDMENT AND TERMINATION OF THE PLAN. 

13.1 Adoption and Stockholder Approval. This Plan will become effective on the date that it is adopted by the
Board (the “Effective Date”). This Plan will be approved by the stockholders of the Company (excluding Shares issued pursuant to this Plan), consistent with applicable laws, within twelve (12) months before or after the
Effective Date. Upon the Effective Date, the Board may grant Awards pursuant to this Plan; provided, however, that: (a) no Option or SAR may be exercised prior to initial stockholder approval of this Plan;
(b) no Option or SAR granted pursuant to an increase in the number of Shares approved by the Board shall be exercised prior to the time such increase has been approved by the stockholders of the Company; (c) in the event that initial
stockholder approval is not obtained within the time period provided herein, all Awards for which only the exemption from California’s securities qualification requirements provided by Section 25102(o) can apply shall be canceled, any
Shares issued pursuant to any such Award shall be canceled and any purchase of such Shares issued hereunder shall be rescinded; and (d) Awards (to which only the exemption from California’s securities qualification requirements provided by
Section 25102(o) can apply) granted pursuant to an increase in the number of Shares approved by the Board which increase is not approved by stockholders within the time then required under Section 25102(o) shall be canceled, any Shares
issued pursuant to any such Awards shall be canceled, and any purchase of Shares subject to any such Award shall be rescinded. 

13.2 Term of Plan. Unless earlier terminated as provided herein, this Plan will automatically terminate ten
(10) years after the later of (i) the Effective Date, or (ii) the most recent increase in the number of Shares reserved under Section 2 that was approved by stockholders. 

  
 14 

 13.3 Amendment or Termination of Plan. Subject to
Section 4.9 hereof, the Board may at any time (a) terminate or amend this Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan and (b) terminate
any and all outstanding Options, SARs or RSUs upon a dissolution or liquidation of the Company, followed by the payment of creditors and the distribution of any remaining funds to the Company’s stockholders; provided,
however, that the Board will not, without the approval of the stockholders of the Company, amend this Plan in any manner that requires such stockholder approval pursuant to Section 25102(o) or pursuant to the Code or the
regulations promulgated under the Code as such provisions apply to ISO plans. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Award previously granted under the Plan. 

14. DEFINITIONS. For all purposes of this Plan, the following terms will have the following meanings. 

“Acquisition,” for purposes of Section 11, means: 

(a) any consolidation or merger in which the Company is a constituent entity or is a party in which the voting stock and other voting
securities of the Company that are outstanding immediately prior to the consummation of such consolidation or merger represent, or are converted into, securities of the surviving entity of such consolidation or merger (or of any Parent of such
surviving entity) that, immediately after the consummation of such consolidation or merger, together possess less than fifty percent (50%) of the total voting power of all voting securities of such surviving entity (or of any of its Parents, if any)
that are outstanding immediately after the consummation of such consolidation or merger; 
 (b) a sale or other transfer by the holders
thereof of outstanding voting stock and/or other voting securities of the Company possessing more than fifty percent (50%) of the total voting power of all outstanding voting securities of the Company, whether in one transaction or in a series of
related transactions, pursuant to an agreement or agreements to which the Company is a party and that has been approved by the Board, and pursuant to which such outstanding voting securities are sold or transferred to a single person or entity, to
one or more persons or entities who are Affiliates of each other, or to one or more persons or entities acting in concert; or 
 (c) the
sale, lease, transfer or other disposition, in a single transaction or series of related transactions, by the Company and/or any Subsidiary or Subsidiaries of the Company, of all or substantially all the assets of the Company and its Subsidiaries
taken as a whole, (or, if substantially all of the assets of the Company and its Subsidiaries taken as a whole are held by one or more Subsidiaries, the sale or disposition (whether by consolidation, merger, conversion or otherwise) of such
Subsidiaries of the Company), except where such sale, lease, transfer or other disposition is made to the Company or one or more wholly owned Subsidiaries of the Company (an “Acquisition by Sale of Assets”). 

  
 15 

 “Affiliate” of a specified person means a person that directly, or
indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified (where, for purposes of this definition, the term “control” (including the terms
controlling, controlled by and under common control with) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether
through the ownership of voting securities, by contract, or otherwise. 
 “Award” means any award pursuant to the
terms and conditions of this Plan, including any Option, Restricted Stock Unit, Stock Appreciation Right or Restricted Stock Award. 

“Award Agreement” means, with respect to each Award, the signed written or electronic agreement between the Company
and the Participant setting forth the terms and conditions of the Award as approved by the Committee. For purposes of the Plan, the Award Agreement may be executed via written or electronic means. 

“Board” means the Board of Directors of the Company. 

“Cause” means Termination because of (a) Participant’s unauthorized misuse of the Company or a Parent or
Subsidiary of the Company’s trade secrets or proprietary information, (b) Participant’s conviction of or plea of nolo contendere to a felony or a crime involving moral turpitude, (c) Participant’s committing an act of fraud
against the Company or a Parent or Subsidiary of the Company or (d) Participant’s gross negligence or willful misconduct in the performance of his or her duties that has had or will have a material adverse effect on the Company or Parent
or Subsidiary of the Company’ reputation or business. 
 “Code” means the Internal Revenue Code of 1986, as
amended. 
 “Committee” means the committee created and appointed by the Board to administer this Plan, or if no
committee is created and appointed, the Board. 
 “Company” means JN Projects, Inc., or any successor corporation.

 “Disability” means that the Participant is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Exercise Price” means the price per Share at which a holder of an Option may purchase Shares issuable upon exercise
of the Option. 
 “Fair Market Value” means, as of any date, the value of a share of the Company’s Common Stock
determined as follows: 
 (a) if such Common Stock is then publicly traded on a national securities exchange, its closing price on the date
of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal; 

(b) if such Common Stock is publicly traded but is not listed or admitted to trading on a national securities exchange, the average of the
closing bid and asked prices on the date of determination as reported by The Wall Street Journal (or, if not so reported, as otherwise reported by any newspaper or other source as the Committee may determine); or 

  
 16 

 (c) if none of the foregoing is applicable to the valuation in question, by the Committee
in good faith. 
 “Option” means an award of an option to purchase Shares pursuant to Section 4 of this Plan.

 “Other Combination” for purposes of Section 11 means any (a) consolidation or merger in which the
Company is a constituent entity and is not the surviving entity of such consolidation or merger or (b) any conversion of the Company into another form of entity; provided that such consolidation, merger or conversion does not
constitute an Acquisition. 
 “Parent” of a specified entity means, any entity that, either directly or indirectly,
owns or controls such specified entity, where for this purpose, “control” means the ownership of stock, securities or other interests that possess at least a majority of the voting power of such specified entity (including
indirect ownership or control of such stock, securities or other interests). 
 “Participant” means a person who
receives an Award under this Plan. 
 “Plan” means this 2011 Equity Incentive Plan, as amended from time to time.

 “Purchase Price” means the price at which a Participant may purchase Restricted Stock pursuant to this Plan. 

“Restricted Stock” means Shares purchased pursuant to a Restricted Stock Award under this Plan. 

“Restricted Stock Award” means an award of Shares pursuant to Section 5 hereof. 

“Restricted Stock Unit” or “RSU” means an award made pursuant to Section 6 hereof. 

“Rule 701” means Rule 701 et seq. promulgated by the Commission under the Securities Act. 

“SEC” means the Securities and Exchange Commission. 

“Section 25102(o)” means Section 25102(o) of the California Corporations Code.

 “Securities Act” means the Securities Act of 1933, as amended. 

“Shares” means shares of the Company’s Common Stock reserved for issuance under this Plan, as adjusted pursuant
to Sections 2.2 and 11 hereof, and any successor security. 
 “Stock Appreciation Right” or
“SAR” means an award granted pursuant to Section 7 hereof. 

  
 17 

 “Subsidiary” means any entity (other than the Company) in an
unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain owns stock or other equity securities representing fifty percent (50%) or more of the total combined voting power of all
classes of stock or other equity securities in one of the other entities in such chain. 
 “Termination” or
“Terminated” means, for purposes of this Plan with respect to a Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director or consultant to the Company or a Parent or
Subsidiary of the Company. A Participant will not be deemed to have ceased to provide services while the Participant is on a bona fide leave of absence, if such leave was approved by the Company in writing. In the case of an approved leave of
absence, the Committee may make such provisions respecting crediting of service, including suspension of vesting of the Award (including pursuant to a formal policy adopted from time to time by the Company) it may deem appropriate, except that in no
event may an Option be exercised after the expiration of the term set forth in the Stock Option Agreement. The Committee will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the
Participant ceased to provide services (the “Termination Date”). 
 “Unvested Shares” means
“Unvested Shares” as defined in the Award Agreement for an Award. 
 “Vested Shares” means
“Vested Shares” as defined in the Award Agreement. 

  
 18 

 NOTICE OF STOCK OPTION GRANT 

JN PROJECTS, INC. 

2011 EQUITY INCENTIVE PLAN 

The Optionee named below (“Optionee”) has been granted an option (this “Option”) to purchase
shares of Common Stock, $0.00001 par value per share (the “Common Stock”), of JN Projects, Inc., a Delaware corporation (the “Company”), pursuant to the Company’s 2011 Equity Incentive
Plan, as amended from time to time (the “Plan”) on the terms, and subject to the conditions, described below and in the Stock Option Agreement attached hereto as Exhibit A,
including its annexes (the “Stock Option Agreement”). 
  

			
	Optionee:	  	See eShares
		
	Maximum Number of Shares Subject to this Option (the “Shares”):	  	See eShares
		
	Exercise Price Per Share:	  	See eShares
		
	Date of Grant:	  	See eShares
		
	Vesting Start Date:	  	See eShares
		
	Exercise Schedule:	  	This Option will become exercisable during its term with respect to portions of the Shares in accordance with the Vesting Schedule set forth below.
		
	Expiration Date:	  	The date ten (10) years after the Date of Grant set forth above, subject to earlier expiration in the event of Termination as provided in Section 3 of the Stock Option Agreement.
		
	Tax Status of Option:	  	See eShares
		
	Vesting Schedule:	  	See eShares.

 General; Agreement: By Optionee’s acceptance of this Option, Optionee and the Company agree that
this Option is granted under and governed by this Notice of Stock Option Grant (this “Grant Notice”) and by the provisions of the Plan and the Stock Option Agreement. The Plan and the Stock Option Agreement are incorporated
herein by reference. Capitalized terms used but not defined herein shall have the meanings given to them in the Plan or in the Stock Option Agreement, as applicable. By acceptance of this Option, Optionee acknowledges receipt of a copy of this Grant
Notice, the Plan and the Stock Option Agreement, represents that Optionee has carefully read and is familiar with their provisions, and hereby accepts the Option subject to all of their respective terms and conditions. Optionee acknowledges that
there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Optionee should consult a tax adviser prior to such exercise or disposition. Optionee agrees and acknowledges that the Vesting Schedule may
change prospectively in the event that Optionee’s service status changes between full and part time status in accordance with Company policies relating to work schedules and vesting of equity awards. 

Execution and Delivery: This Grant Notice may be executed and delivered electronically whether via the Company’s intranet or the Internet site of
a third party or via email or any other means of electronic delivery specified by the Company. By Optionee’s acceptance hereof (whether written, electronic or otherwise), Optionee agrees, to the fullest extent permitted by law, that in lieu of
receiving documents in paper format, Optionee accepts the electronic delivery of any documents that the Company (or any third party the Company may designate), may deliver in connection with this grant (including the Plan, this Grant Notice, the
Stock Option Agreement, the information described in Rules 701(e)(2), (3), (4) and (5) under the Securities Act (the “701 Disclosures”), account statements, or other communications or information) whether via the
Company’s intranet or the Internet site of such third party or via email or such other means of electronic delivery specified by the Company. 

ATTACHMENT: Exhibit A – Stock Option Agreement 

 Exhibit A 

Stock Option Agreement 

 EXHIBIT A 

STOCK OPTION AGREEMENT 

JN PROJECTS, INC. 

2011 EQUITY INCENTIVE PLAN 

This Stock Option Agreement (this “Agreement”) is made and entered into as of the date of grant (the “Date
of Grant”) set forth on the Notice of Stock Option Grant attached as the facing page to this Agreement (the “Grant Notice”) by and between JN Projects, Inc., a Delaware corporation (the
“Company”), and the optionee named on the Grant Notice (“Optionee”). Capitalized terms not defined in this Agreement shall have the meaning ascribed to them in the Company’s 2011 Equity Incentive
Plan, as amended from time to time (the “Plan”), or in the Grant Notice, as applicable. 
 15.
GRANT OF OPTION. The Company hereby grants to Optionee an option (this “Option”) to purchase up to the total number of shares of Common Stock of the Company, $0.00001 par value per share (the “Common
Stock”), set forth in the Grant Notice as the Shares (the “Shares”) at the Exercise Price Per Share set forth in the Grant Notice (the “Exercise Price”), subject to all of the terms and
conditions of the Grant Notice, this Agreement and the Plan. If designated as an Incentive Stock Option in the Grant Notice, this Option is intended to qualify as an incentive stock option (the “ISO”) within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), except that if on the Date of Grant Optionee is not subject to U.S. income tax, then this Option shall be a NQSO. 

16. EXERCISE PERIOD. 

16.1 Exercise Period of Option. This Option is considered to be “vested” with respect to any particular
Shares when this Option is exercisable with respect to such Shares. This Option will become vested during its term as to portions of the Shares in accordance with the Vesting Schedule set forth in the Grant Notice. Notwithstanding any provision in
the Plan or this Agreement to the contrary, on or after Optionee’s Termination Date, this Option may not be exercised with respect to any Shares that are Unvested Shares on Optionee’s Termination Date. 

16.2 Vesting of Option Shares. Shares with respect to which this Option is vested and exercisable at a given time
pursuant to the Vesting Schedule set forth in the Grant Notice are “Vested Shares.” Shares with respect to which this Option is not vested and exercisable at a given time pursuant to the Vesting Schedule set forth in
the Grant Notice are “Unvested Shares.” 
 16.3 Expiration. The Option
shall expire on the Expiration Date set forth in the Grant Notice or earlier as provided in Section 3 below. 
 17. TERMINATION.

 17.1 Termination for Any Reason Except Death, Disability or Cause. Except as provided in subsection 3.2
in a case in which Optionee dies within three (3) months after Optionee is Terminated other than for Cause, if Optionee is Terminated for any reason (other than Optionee’s death or Disability or for Cause), then (a) on and
after Optionee’s Termination Date, this Option shall expire immediately with respect to any Shares that are Unvested Shares and may not be exercised with respect to any Shares that are Unvested Shares on Optionee’s Termination Date and
(b) this Option to the extent (and only to the extent) that it is exercisable with respect to Vested Shares on Optionee’s Termination Date, may be exercised by Optionee no later than three (3) months after Optionee’s
Termination Date (but in no event may this Option be exercised after the Expiration Date). 

 17.2 Termination Because of Death or Disability. If Optionee is
Terminated because of Optionee’s death or Disability (or if Optionee dies within three (3) months of the date of Optionee’s Termination for any reason other than for Cause), then (a) on and after Optionee’s Termination Date,
this Option shall expire immediately with respect to any Shares that are Unvested Shares and may not be exercised with respect to any Shares that are Unvested Shares on Optionee’s Termination Date and (b) this Option, to the extent (and
only to the extent) that it is exercisable with respect to Vested Shares on Optionee’s Termination Date, may be exercised by Optionee (or Optionee’s legal representative) no later than twelve (12) months after Optionee’s
Termination Date, but in no event later than the Expiration Date. Any exercise of this Option beyond (i) three (3) months after the date Optionee ceases to be an employee when Optionee’s Termination is for any reason other than
Optionee’s death or disability, within the meaning of Section 22(e)(3) of the Code; or (ii) twelve (12) months after the date Optionee ceases to be an employee when the termination is for Optionee’s disability, within the
meaning of Section 22(e)(3) of the Code, is deemed to be an NQSO. 
 17.3 Termination for Cause. If
Optionee is Terminated for Cause, then Optionee may exercise this Option, but only with respect to any Shares that are Vested Shares on Optionee’s Termination Date, and this Option shall expire on Optionee’s Termination Date, or at
such later time and on such conditions as may be affirmatively determined by the Committee. On and after Optionee’s Termination Date, this Option shall expire immediately with respect to any Shares that are Unvested Shares and may not be
exercised with respect to any Shares that are Unvested Shares on Optionee’s Termination Date. 
 17.4 No Obligation to
Employ. Nothing in the Plan or this Agreement shall confer on Optionee any right to continue in the employ of, or other relationship with, the Company or any Parent or Subsidiary of the Company, or limit in any way the right of the
Company or any Parent or Subsidiary of the Company to terminate Optionee’s employment or other relationship at any time, with or without Cause. 

18. MANNER OF EXERCISE. 

18.1 Stock Option Exercise Notice and Agreement. To exercise this Option, Optionee (or in the case of exercise
after Optionee’s death or incapacity, Optionee’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed Stock Option Exercise Notice and Agreement in the form attached hereto as
Annex A, or in such other form as may be approved by the Committee from time to time (the “Exercise Agreement”) and payment for the shares being purchased in accordance with this
Agreement. The Exercise Agreement shall set forth, among other things, (i) Optionee’s election to exercise this Option, (ii) the number of Shares being purchased, (iii) any representations, warranties and agreements regarding
Optionee’s investment intent and access to information as may be required by the Company to comply with applicable securities laws in connection with any exercise of this Option and (iv) any other agreements required by the Company. If
someone other than Optionee exercises this Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise this Option and such person shall be subject to all of the
restrictions contained herein as if such person were Optionee. 
 18.2 Limitations on Exercise. This Option may
not be exercised unless such exercise is in compliance with all applicable federal and state securities laws, as they are in effect on the date of exercise. 

18.3 Payment. The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the shares
being purchased in cash (by check or wire transfer), or where permitted by law: 
 (a) by cancellation of indebtedness of the Company owed
to Optionee; 

  
 3 

 (b) by surrender of shares of the Company that are free and clear of all security
interests, pledges, liens, claims or encumbrances and: (i) for which the Company has received “full payment of the purchase price” within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of
a promissory note, such note has been fully paid with respect to such shares) or (ii) that were obtained by Optionee in the public market; 

(c) by participating in a formal cashless exercise program implemented by the Committee in connection with the Plan; 

(d) provided that a public market for the Common Stock exists and subject to compliance with applicable law, by exercising as set forth
below, through a “same day sale” commitment from Optionee and a broker-dealer whereby Optionee irrevocably elects to exercise this Option and to sell a portion of the Shares so purchased sufficient to pay the total Exercise Price, and
whereby the broker-dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; or 

(e) by any combination of the foregoing or any other method of payment approved by the Committee that constitutes legal consideration for the
issuance of Shares. 
 18.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option,
Optionee must pay or provide for any applicable federal, state and local withholding obligations of the Company. If the Committee permits, Optionee may provide for payment of withholding taxes upon exercise of the Option by requesting that the
Company retain the minimum number of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; or to arrange a mandatory “sell to cover” on Participant’s behalf (without further authorization); but
in no event will the Company withhold Shares or “sell to cover” if such withholding would result in adverse accounting consequences to the Company. In case of stock withholding or a sell to cover, the Company shall issue the net number of
Shares to Optionee by deducting the Shares retained from the Shares issuable upon exercise. 
 18.5 Issuance of
Shares. Provided that the Exercise Agreement and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares issuable upon a valid exercise of this Option registered in the name of
Optionee, Optionee’s authorized assignee, or Optionee’s legal representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto. 

19. COMPLIANCE WITH LAWS AND REGULATIONS. The
Plan and this Agreement are intended to comply with Section 25102(o) and Rule 701. Any provision of this Agreement that is inconsistent with Section 25102(o) or Rule 701 shall, without further act or amendment by the Company or the
Committee, be reformed to comply with the requirements of Section 25102(o) and/or Rule 701. The exercise of this Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Optionee with all
applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Common Stock may be listed at the time of such issuance or transfer. Optionee understands that the Company is under
no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance. 

20. NONTRANSFERABILITY OF OPTION. This Option may not be transferred in any manner
other than by will or by the laws of descent and distribution, and, with respect to NQSOs, by instrument to a testamentary trust in which the options are to be passed to beneficiaries upon the death of the trustor (settlor) or a revocable trust, or
by gift to “immediate family” as that term is defined in 17 C.F.R. 240.16a-1(e), and may be exercised during the lifetime of Optionee only by Optionee or in the event of Optionee’s incapacity,
by Optionee’s legal representative. The terms of this Option shall be binding upon the executors, administrators, successors and assigns of Optionee. 

  
 4 

 21. RESTRICTIONS ON TRANSFER. 

21.1 Disposition of Shares. Optionee hereby agrees that Optionee shall make no disposition of any of the Shares
(other than as permitted by this Agreement) unless and until: 
 (a) Optionee shall have notified the Company of the proposed disposition
and provided a written summary of the terms and conditions of the proposed disposition; 
 (b) Optionee shall have complied with all
requirements of this Agreement applicable to the disposition of the Shares and the restrictions on transfer set forth in the Bylaws (as defined below); 

(c) Optionee shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that
(i) the proposed disposition does not require registration of the Shares under the Securities Act or under any applicable state securities laws or (ii) all appropriate actions necessary for compliance with the registration requirements of
the Securities Act or of any exemption from registration available under the Securities Act (including Rule 144) or applicable state securities laws have been taken; and 

(d) Optionee shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed
disposition will not result in the contravention of any transfer restrictions applicable to the Shares pursuant to the provisions of the regulations promulgated under Section 25102(o), Rule 701 or under any other applicable securities laws or
adversely affect the Company’s ability to rely on the exemption(s) from registration under the Securities Act or under any other applicable securities laws for the grant of the Option, the issuance of Shares thereunder or any other issuance of
securities under the Plan. 
 21.2 Restriction on Transfer. Optionee shall not transfer, assign, grant a lien or
security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Shares which are subject to the Company’s Right of First Refusal described below, except as permitted by this Agreement. 

21.3 Transferee Obligations. Each person (other than the Company) to whom the Shares are transferred by means of
one of the permitted transfers specified in this Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Agreement and that the transferred
Shares are subject to (i) the Company’s Right of First Refusal granted hereunder and (ii) the market stand-off provisions of Section 8 below, (iii) the Company Co-Sale Agreement (as defined below), (iv) the Company Voting Agreement (as defined below), and (v) and the restrictions on transfer set forth in the Bylaws (as defined below), as each of the foregoing
documents may be amended from time to time, to the same extent such Shares would be so subject if retained by Optionee. 
 22.
MARKET STANDOFF AGREEMENT. Optionee agrees that, subject to any early release provisions that apply pro rata to stockholders of the Company according to their holdings of Common Stock (determined on an
as-converted into Common Stock basis), Optionee will not, for a period of up to one hundred eighty (180) days (plus up to an additional thirty five (35) days to the extent reasonably requested by the
Company or such underwriter(s) to accommodate regulatory restrictions on the publication or other distribution of research reports or earnings releases by the Company, including NASD and NYSE rules) following the effective date of the registration
statement filed with the SEC relating to the initial underwritten sale of Common Stock of the Company to the public under the Securities Act (the “IPO”), directly or indirectly sell, offer to sell, grant any option for the
sale of, or otherwise dispose of any Common Stock or securities convertible into Common Stock, except for: (i) transfers of Shares permitted under Section 9.6 hereof so long as such transferee furnishes to the Company and the
managing underwriter their written consent to be bound by this Section 8 as a condition precedent to such transfer; and (ii) sales of any securities to be included in the registration statement for

  
 5 

 
the IPO. For the avoidance of doubt, the provisions of this Section shall only apply to the IPO. The restricted period shall in any event terminate two (2) years after the closing date of
the IPO. In order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the Shares subject to this Section and to impose stop transfer instructions with respect to the
Shares until the end of such period. Optionee further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing restrictions on transfer. For the avoidance of doubt, the foregoing provisions of this
Section shall not apply to any registration of securities of the Company (a) under an employee benefit plan or (b) in a merger, consolidation, business combination or similar transaction. 

23. COMPANY’S RIGHT OF FIRST REFUSAL. Before any Shares held by Optionee or any transferee of such Shares (either sometimes
referred to herein as the “Holder”) may be sold or otherwise transferred (including, without limitation, a transfer by gift or operation of law), the Company and/or its assignee(s) will have a right of first
refusal to purchase the Shares to be sold or transferred (the “Offered Shares”) on the terms and conditions set forth in this Section (the “Right of First Refusal”). 

23.1 Notice of Proposed Transfer. The Holder of the Offered Shares will deliver to the Company a written notice
(the “Notice”) stating: (i) the Holder’s bona fide intention to sell or otherwise transfer the Offered Shares; (ii) the name and address of each proposed purchaser or other transferee (the
“Proposed Transferee”); (iii) the number of Offered Shares to be transferred to each Proposed Transferee; (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the
Offered Shares (the “Offered Price”); and (v) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company and/or its assignee(s) pursuant to the Company’s Right of
First Refusal at the Offered Price as provided for in this Agreement. 
 23.2 Exercise of Right of First
Refusal. At any time within thirty (30) days after the date of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than all)
the Offered Shares proposed to be transferred to any one or more of the Proposed Transferees named in the Notice, at the purchase price, determined as specified below. 

23.3 Purchase Price. The purchase price for the Offered Shares purchased under this Section will be the Offered
Price, provided that if the Offered Price consists of no legal consideration (as, for example, in the case of a transfer by gift) then the purchase price will be the fair market value of the Offered Shares as determined in good faith
by the Committee. If the Offered Price includes consideration other than cash, then the value of the non-cash consideration, as determined in good faith by the Committee, will conclusively be deemed to be the
cash equivalent value of such non-cash consideration. 
 23.4 Payment.
Payment of the purchase price for the Offered Shares will be payable, at the option of the Company and/or its assignee(s) (as applicable), by check or by cancellation of all or a portion of any outstanding purchase money indebtedness owed by the
Holder to the Company (or to such assignee, in the case of a purchase of Offered Shares by such assignee) or by any combination thereof. The purchase price will be paid without interest within sixty (60) days after the Company’s receipt of
the Notice, or, at the option of the Company and/or its assignee(s), in the manner and at the time(s) set forth in the Notice. 

23.5 Holder’s Right to Transfer. If all of the Offered Shares proposed in the Notice to be transferred to a
given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Offered Shares to each Proposed Transferee at the Offered Price or at a higher price,
provided that (i) such sale or other transfer is consummated within ninety (90) days after the date of the Notice, (ii) any such sale or other transfer is effected in compliance with all applicable securities laws, and
(iii) each Proposed Transferee agrees in writing that the provisions of this Section will continue to apply to the Offered Shares in the hands of such Proposed Transferee. If the Offered Shares described in the Notice are not transferred to
each Proposed Transferee within such ninety (90) day period, then a new Notice must be given to the Company pursuant to which the Company will again be offered the Right of First Refusal before any Shares held by the Holder may be sold or
otherwise transferred. 

  
 6 

 23.6 Exempt Transfers. Notwithstanding anything to the contrary
in this Section, the following transfers of Shares will be exempt from the Right of First Refusal: (i) the transfer of any or all of the Shares during Optionee’s lifetime by gift or on Optionee’s death by will or intestacy to any
member(s) of Optionee’s “Immediate Family” (as defined below) or to a trust for the benefit of Optionee and/or member(s) of Optionee’s Immediate Family, provided that each transferee or other recipient agrees in a
writing satisfactory to the Company that the provisions of this Section will continue to apply to the transferred Shares in the hands of such transferee or other recipient; (ii) any transfer of Shares made pursuant to a statutory merger,
statutory consolidation of the Company with or into another corporation or corporations or a conversion of the Company into another form of legal entity (except that the Right of First Refusal will continue to apply thereafter to such Shares, in
which case the surviving corporation of such merger or consolidation or the resulting entity of such conversion shall succeed to the rights of the Company under this Section unless the agreement of merger or consolidation or conversion expressly
otherwise provides); or (iii) any transfer of Shares pursuant to the winding up and dissolution of the Company. As used herein, the term “Immediate Family” will mean Optionee’s spouse, the lineal descendant or
antecedent, father, mother, brother or sister, child, adopted child, grandchild or adopted grandchild of Optionee or Optionee’s spouse, or the spouse of any of the above or Spousal Equivalent, as defined herein. As used herein, a person is
deemed to be a “Spousal Equivalent” provided the following circumstances are true: (i) irrespective of whether or not Optionee and the Spousal Equivalent are the same sex, they are the sole spousal equivalent of the
other for the last twelve (12) months, (ii) they intend to remain so indefinitely, (iii) neither are married to anyone else, (iv) both are at least 18 years of age and mentally competent to consent to contract, (v) they are not
related by blood to a degree of closeness that which would prohibit legal marriage in the state in which they legally reside, (vi) they are jointly responsible for each other’s common welfare and financial obligations, and (vii) they
reside together in the same residence for the last twelve (12) months and intend to do so indefinitely. 
 23.7
Termination of Right of First Refusal. The Right of First Refusal will terminate as to all Shares: (i) on the effective date of the first sale of Common Stock of the Company to the general public pursuant to a
registration statement filed with and declared effective by the SEC under the Securities Act (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee incentive or benefit
plan); (ii) on any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations if the common stock of the surviving corporation or any direct
or indirect parent corporation thereof is registered under the Exchange Act; or (iii) on any transfer or conversion of Shares made pursuant to a statutory conversion of the Company into another form of legal entity if the common equity
(or comparable equity security) of entity resulting from such conversion is registered under the Exchange Act. 
 23.8
Encumbrances on Shares. Optionee may grant a lien or security interest in, or pledge, hypothecate or encumber Shares only if each party to whom such lien or security interest is granted, or to whom such pledge, hypothecation or
other encumbrance is made, agrees in a writing satisfactory to the Company that: (i) such lien, security interest, pledge, hypothecation or encumbrance will not adversely affect or impair the Right of First Refusal or the rights of the Company
and/or its assignee(s) with respect thereto and will not apply to such Shares after they are acquired by the Company and/or its assignees under this Section; and (ii) the provisions of this Agreement will continue to apply to such Shares in the
hands of such party and any transferee of such party. 
 23.9 Effect of Company Co-Sale
Agreement. If Optionee is, or at any time hereafter becomes, a party to or otherwise bound by (i) the Company’s Second Amended and Restated Right of First Refusal and Co-Sale Agreement dated
as of May 26, 2017 among the Company and certain stockholders and other investors in the Company, as such may be amended and/or restated from time to 

  
 7 

 
time and/or (ii) any other agreement that is a successor to or replacement of such agreement (collectively, the “Company Co-Sale
Agreement”), then, in the event of any conflict or inconsistency between the provisions of Section 8 hereof and/or this Section 9 and any provisions in the Company Co-Sale Agreement
granting the Company and/or other security holders of the Company rights of first refusal and/or co-sale rights with respect to any or all of the Shares or imposing market
stand-off restrictions, Optionee agrees with the Company that the terms and conditions of the Company Co-Sale Agreement shall apply, govern, supersede and prevail over
(and in lieu of) the provisions of Section 8 hereof and/or of this Section 9 (as applicable) so long as the Company Co-Sale Agreement is in effect and Optionee is a party to or bound thereby. If the
Company Co-Sale Agreement is no longer in effect or if Optionee is not a party to or bound thereby, then the provisions of this Section 9 shall apply in full force and effect until termination of the
Right of First Refusal and the provisions of Section 8 hereof shall apply in full force and effect in accordance with its terms. 

24. RIGHTS AS A STOCKHOLDER. Optionee shall not have any of the rights of a stockholder with respect to any Shares unless and
until such Shares are issued to Optionee. Subject to the terms and conditions of this Agreement, Optionee will have all of the rights of a stockholder of the Company with respect to the Shares from and after the date that Shares are issued to
Optionee pursuant to, and in accordance with, the terms of the Exercise Agreement until such time as Optionee disposes of the Shares or the Company and/or its assignee(s) exercise(s) the Right of First Refusal. Upon an exercise of the Right of First
Refusal, Optionee will have no further rights as a holder of the Shares so purchased upon such exercise, other than the right to receive payment for the Shares so purchased in accordance with the provisions of this Agreement, and Optionee will
promptly surrender the stock certificate(s) evidencing the Shares so purchased to the Company for transfer or cancellation. 
 25.
BYLAWS RESTRICTIONS. Optionee and any transferee of the Shares agree that the Shares and any interest therein are subject to the right of first refusal and any and all restrictions on transfer set forth in the Company’s Amended and
Restated Bylaws, as it may be amended from time to time (the “Bylaws”). 
 26. ESCROW. As security for
Optionee’s faithful performance of this Agreement, Optionee agrees, immediately upon issuance of the stock certificate(s) evidencing the Shares, to consent to the delivery of such certificate(s) to the Secretary of the Company or other designee
of the Company (the “Escrow Holder”), who is hereby appointed to hold such certificate(s) in escrow and to take all such actions and to effectuate all such transfers and/or releases of such Shares as are in accordance with
the terms of this Agreement. Optionee and the Company agree that Escrow Holder will not be liable to any party to this Agreement (or to any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally
fraudulent in carrying out the duties of Escrow Holder under this Agreement. Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any
order of any court with respect to the transactions contemplated by this Agreement and will not be liable for any act or omission taken by Escrow Holder in good faith reliance on such documents, the advice of counsel or a court order. The Shares
will be released from escrow upon termination of the Right of First Refusal. 
 27. COMPANY
CO-SALE AGREEMENT. As a material inducement and consideration for the Company to enter into this Agreement, Optionee hereby agrees that if, the Company requests Optionee to enter into and become a
party to the Company Co-Sale Agreement (and to subject the Shares to the rights of first refusal held by the Company and other Company investors thereunder and the
co-sale rights of other investors thereunder), then Optionee will enter into such agreement and execute and deliver signature pages thereto (as requested by the Company) in such capacity as the Company
requests, at the time of exercising this Option and as a condition to such exercise or at any later time. 

  
 8 

 28. EXECUTION OF ADOPTION AGREEMENT TO VOTING AGREEMENT. 

28.1 Optionee agrees, as a condition to receipt of the Shares upon exercise of the Option, to become a party to the Company’s
Voting and Drag-Along Agreement dated as of May 26, 2017 among the Company and certain stockholders and other investors in the Company, as such may be amended and/or restated from time to time (the “Company Voting
Agreement”) (pursuant to which Optionee would agree to vote all shares of Company stock held by Optionee for the election of directors and in favor of certain material transactions (such as mergers or sales of the Company), as a Key
Holder therein, by executing and delivering the Adoption Agreement to the Company Voting Agreement, in the form attached hereto as Annex B (the “Adoption Agreement”), provided that such Company Voting Agreement will
automatically terminate in accordance with its terms. 
 28.2 Any transferee of Optionee’s Shares also agrees to become a party
to the Company Voting Agreement as a Key Holder therein by executing the Adoption Agreement. 
 29. RESTRICTIVE LEGENDS AND STOP-TRANSFER
ORDERS. 
 29.1 Legends. Optionee understands and agrees that the Company will place the legends set forth
below or similar legends on any stock certificate(s) evidencing the Shares, together with any other legends that may be required by state or U.S. Federal securities laws, the Company’s Certificate of Incorporation or Bylaws, any other agreement
between Optionee and the Company, or any agreement between Optionee and any third party (and any other legend(s) that the Company may become obligated to place on the stock certificate(s) evidencing the Shares under the terms of any agreement to
which the Company is or may become bound or obligated): 
 (a) THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED
UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE
ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 

(b) THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON RESALE AND TRANSFER, INCLUDING THE RIGHT OF FIRST
REFUSAL HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH SALE AND TRANSFER
RESTRICTIONS, INCLUDING THE RIGHT OF FIRST REFUSAL, ARE BINDING ON TRANSFEREES OF THESE SHARES. 
 (c) THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO A MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN STOCK OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT
OF SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS (AND POSSIBLY LONGER) AFTER THE EFFECTIVE DATE OF CERTAIN PUBLIC OFFERINGS OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES. 

  
 9 

 (d) THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT, AS MAY BE AMENDED FROM
TIME TO TIME, (A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE COMPANY), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF THAT
VOTING AGREEMENT, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER AND OWNERSHIP SET FORTH THEREIN. 
 (e) THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER AS PROVIDED IN THE BYLAWS OF THE CORPORATION. 
 Optionee agrees that if Optionee becomes a party to the
Company Co-Sale Agreement then Optionee agrees that the stock certificate(s) evidencing the Shares shall, in addition, bear any legends required under the Company
Co-Sale Agreement, as applicable. 
 29.2 Stop-Transfer Instructions.
Optionee agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities,
it may make appropriate notations to the same effect in its own records. 
 29.3 Refusal to Transfer. The
Company will not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares, or to accord the right to
vote or pay dividends to any purchaser or other transferee to whom such Shares have been so transferred. 
 30. CERTAIN TAX
CONSEQUENCES. Set forth below is a brief summary as of the Effective Date of the Plan of some of the federal tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND
REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES. 
 30.1
Exercise of ISO. If the Option qualifies as an ISO, there will be no regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price will be treated as a tax preference item for federal alternative minimum tax purposes and may subject Optionee to the alternative minimum tax in the year of exercise. 

30.2 Exercise of Nonqualified Stock Option. If the Option does not qualify as an ISO, there may be a regular
federal income tax liability upon the exercise of the Option. Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price. If Optionee is a current or former employee of the Company, the Company may be required to withhold from Optionee’s compensation or collect from Optionee and pay to the applicable taxing authorities an amount
equal to a percentage of this compensation income at the time of exercise. 
 30.3 Disposition of Shares. The
following tax consequences may apply upon disposition of the Shares. 
 (a) Incentive Stock Options. If the Shares
are held for more than twelve (12) months after the date of purchase of the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will
be 

  
 10 

 
treated as long term capital gain for federal income tax purposes. If Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain
realized on such disposition will be treated as compensation income (taxable at ordinary income rates in the year of the disposition) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price. 
 (b) Nonqualified Stock Options. If the Shares are held for more than twelve (12) months after
the date of purchase of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain. 

31. GENERAL PROVISIONS. 

31.1 Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or
the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and Optionee. 

31.2 Entire Agreement. The Plan, the Grant Notice and the Exercise Agreement are each incorporated herein by
reference. This Agreement, the Grant Notice, the Plan and the Exercise Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede all prior undertakings and agreements with respect to such
subject matter. 
 32. NOTICES. Any and all notices required or permitted to be given to a party pursuant to the provisions of
this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following: (i) at the time of personal delivery, if delivery is in person; (ii) at the
time an electronic confirmation of receipt is received, if delivery is by email; (iii) at the time of transmission by facsimile, addressed to the other party at its facsimile number specified herein (or hereafter modified by subsequent notice
to the parties hereto), with confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile; (iv) one (1) business day after deposit with an express overnight courier for United
States deliveries, or two (2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; or (v) three (3) business days after deposit in the United States mail by
certified mail (return receipt requested) for United States deliveries. Any notice for delivery outside the United States will be sent by email, facsimile or by express courier. Any notice not delivered personally or by email will be sent with
postage and/or other charges prepaid and properly addressed to Optionee at the last known address or facsimile number on the books of the Company, or at such other address or facsimile number as such other party may designate by one of the indicated
means of notice herein to the other parties hereto or, in the case of the Company, to it at its principal place of business. Notices to the Company will be marked “Attention: Chief Financial Officer.” Notices by facsimile shall be machine
verified as received. 
 33. SUCCESSORS AND ASSIGNS. The Company may assign any of its rights under this Agreement including
its rights to purchase Shares under the Right of First Refusal. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal representatives, successors and assigns. 

34. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the internal laws of the State of
California as such laws are applied to agreements between California residents entered into and to be performed entirely within California. If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such
provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable. 

  
 11 

 35. FURTHER ASSURANCES. The parties agree to execute such further
documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement. 

36. TITLES AND HEADINGS. The titles, captions and headings of this Agreement are included for ease of reference only and
will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to “sections” and “exhibits” will mean “sections” and “exhibits” to this Agreement.

 37. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which when so executed and
delivered will be deemed an original, and all of which together shall constitute one and the same agreement. 
 38.
SEVERABILITY. If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible
given the intent of the parties hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause
or provision had (to the extent not enforceable) never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which
determination as made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 

*    *    *    *    * 

Attachments:
 Annex
A: Form of Stock Option Exercise Notice and Agreement 
 Annex B: Adoption Agreement to Company Voting Agreement 

  
 12 

 ANNEX A 

FORM OF STOCK OPTION EXERCISE NOTICE AND AGREEMENT 

JN PROJECTS, INC. 

2011 EQUITY INCENTIVE PLAN 

OPTIONEE INFORMATION: Please provide the following information about yourself
(“Optionee”): 
  

							
	Name:	  	 See eShares
	  	Social Security Number:     See eShares
			
	Address:	  	 See eShares
	  	Employee Number:             See eShares
			
		  	      
	  	Email Address:                    See eShares

 OPTION INFORMATION: Please provide this information on the option being exercised
(the “Option”): 
  

			
	 Grant No. See eShares
	  	
		
	 Date of Grant: See eShares
	  	 Type of Stock Option:

		
	 Option Price per Share: $ See eShares
	  	 See eShares

		
	 Total number of shares of Common Stock of JN Projects, Inc.

(the “Company”) subject to the Option: See eShares
	  	

 EXERCISE INFORMATION: 

Number of shares of Common Stock of the Company for which the Option is now being exercised: See eShares. (These shares are referred to below as
the “Purchased Shares.”) 
 Total Exercise Price Being Paid for the Purchased Shares: $ See
eShares     
 Form of payment [select all that
apply1]: 
  

	 	•	 	 Check for
$                            , payable to “JN Projects, Inc.”

  

	 	•	 	 Certificate(s) for
                                 shares of Common Stock of the Company. These
shares will be valued as of the date this notice is received by the Company. [Requires Company consent.] 

  

	 	•	 	 ACH 

AGREEMENTS, REPRESENTATIONS AND ACKNOWLEDGMENTS OF
OPTIONEE: By signing this Stock Option Exercise Notice and Agreement, Optionee hereby agrees with, and represents to, the Company as follows: 
  

	1.	 Terms Governing. I acknowledge and agree with the Company that I am acquiring the Purchased Shares by
exercise of this Option subject to all other terms and conditions of the Notice of Stock Option Grant and the Stock Option Agreement that govern the Option, including without limitation the terms of the Company’s 2011 Equity Incentive Plan, as
it may be amended (the “Plan”). 

  

	1 	 If you are a non-U.S. Optionee, please see the Company for permitted
forms of payment. 

  

	2.	 Investment Intent; Securities Law Restrictions. I represent and warrant to the Company that I am
acquiring and will hold the Purchased Shares for investment for my account only, and not with a view to, or for resale in connection with, any “distribution” of the Purchased Shares within the meaning of the Securities Act of 1933, as
amended (the “Securities Act”). I understand that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption from such registration requirement and that the Purchased Shares must
be held by me indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company and its counsel) that registration is not required. I acknowledge that
the Company is under no obligation to register the Purchased Shares under the Securities Act or under any other securities law. 

  

	3.	 Restrictions on Transfer: Rule 144. I will not sell, transfer or otherwise dispose of the Purchased
Shares in violation of the Securities Act, the Securities Exchange Act of 1934, or the rules promulgated thereunder (including Rule 144 under the Securities Act described below (“Rule 144”)) or of any other applicable
securities laws. I am aware of Rule 144, which permits limited public resales of securities acquired in a non-public offering, subject to satisfaction of certain conditions, which include (without
limitation) that: (a) certain current public information about the Company is available; (b) the resale occurs only after the holding period required by Rule 144 has been met; (c) the sale occurs through an unsolicited
“broker’s transaction”; and (d) the amount of securities being sold during any three-month period does not exceed specified limitations. I understand that the conditions for resale set forth in Rule 144 have not been
satisfied and that the Company has no plans to satisfy these conditions in the foreseeable future. 

  

	4.	 Access to Information; Understanding of Risk in Investment. I acknowledge that I have received and had
access to such information as I consider necessary or appropriate for deciding whether to invest in the Purchased Shares and that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the
issuance of the Purchased Shares. I am aware that my investment in the Company is a speculative investment that has limited liquidity and is subject to the risk of complete loss. I am able, without impairing my financial condition, to hold the
Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares. 

  

	5.	 Rights of First Refusal; Market Stand-off. I acknowledge that
the Purchased Shares remain subject to the Company’s Right of First Refusal and the market stand-off covenants (sometimes referred to as the “lock-up”),
all in accordance with the applicable Notice of Stock Option Grant and the Stock Option Agreement that govern the Option. 

  

	6.	 Form of Ownership. I acknowledge that the Company has encouraged me to consult my own adviser to
determine the form of ownership of the Purchased Shares that is appropriate for me. In the event that I choose to transfer my Purchased Shares to a trust, I agree to sign a Stock Transfer Agreement. In the event that I choose to transfer my
Purchased Shares to a trust that is not an eligible revocable trust, I also acknowledge that the transfer will be treated as a “disposition” for tax purposes. As a result, the favorable ISO tax treatment will be unavailable and other
unfavorable tax consequences may occur. 

  

	7.	 Investigation of Tax Consequences. I acknowledge that the Company has encouraged me to consult my own
adviser to determine the tax consequences of acquiring the Purchased Shares at this time. 

  

	8.	 Other Tax Matters. I agree that the Company does not have a duty to design or administer the Plan or its
other compensation programs in a manner that minimizes my tax liabilities. I will not make any claim against the Company or its Board of Directors, officers or employees related to tax liabilities arising from my options or my other compensation. In
particular, I acknowledge that my options (including the Option) are exempt from section 409A of the Internal Revenue Code only if the exercise price per share is at least equal to the fair market value per share of the Common Stock at the

  
 2 

	 	
time the option was granted by the Board. Since shares of the Common Stock are not traded on an established securities market, the determination of their fair market value was made by the Board
and/or by an independent valuation firm retained by the Company. I acknowledge that there is no guarantee in either case that the Internal Revenue Service will agree with the valuation, and I will not make any claim against the Company or its Board,
officers or employees in the event that the Internal Revenue Service asserts that the valuation was too low. 

  

	9.	 Spouse Consent. I agree to seek the consent of my spouse to the extent required by the Company to
enforce the foregoing. 

  

	10.	 Agreement to Enter into Co-Sale Agreement. Pursuant to the Stock
Option Agreement, if requested to do so by the Company, I agree to enter into and execute the then-current Company Co-Sale Agreement concurrently with my exercise of the Option or at any other time I am
requested to do so by the Company. I acknowledge that by entering into the Company Co-Sale Agreement I will be subjecting the Purchased Shares to the rights of first refusal,
co-sale rights and all the other provisions of the Company Co-Sale Agreement, in addition to the right of first refusal, repurchase option and market stand-off provisions described above. 

  

	11.	 Execution of Adoption Agreement to Voting Agreement. Pursuant to the Stock Option Agreement, I agree, as
a condition to receipt of the Shares upon exercise of the Option, to enter into and execute the Company’s then-current Company Voting Agreement concurrently with my exercise of the Option, as a Key Holder therein, by executing and delivering
the Adoption Agreement to the Company Voting Agreement, in the form attached hereto as Exhibit 1 (the “Adoption Agreement”). I acknowledge that by entering into the Voting Agreement I will be subjected to voting and other obligations and
covenants regarding all Company shares I own and all other provisions of the Company Voting Agreement, in addition to the right of first refusal, repurchase option and market stand-off provisions described
above. 

  

	12.	 Bylaws Restrictions. I acknowledge that the Shares and any interest therein are subject to the right of
first refusal and any and all restrictions on transfer set forth in the Company’s Amended and Restated Bylaws, as it may be amended from time to time. 

  

	13.	 Tax Withholding. As a condition of exercising this Option, I agree to make adequate provision for
foreign, federal, state or other tax withholding obligations, if any, which arise upon the grant, vesting or exercise of this Option, or disposition of the Purchased Shares, whether by withholding, direct payment to the Company, or otherwise.

 The undersigned hereby executes and delivers this Stock Option Exercise Notice and Agreement and agrees to be bound by its terms 

 

					
	SIGNATURE:	 		 	DATE:
			
	   
	 		 	   

	Optionee’s Name:	 		 	

 Attachments: 
 Exhibit
1 – Adoption Agreement to Company Voting Agreement 
 [Signature Page to Stock Option Exercise Notice and Agreement] 

  
 3 

 ANNEX B 

ADOPTION AGREEMENT 
 This
Adoption Agreement (“Adoption Agreement”) is executed on
                                ,
20        , by the undersigned (the “Holder”) pursuant to the terms of that certain Voting and Drag-Along Agreement dated as of May 26, 2017 (the
“Agreement”), by and among the Company and certain of its Stockholders, as such Agreement may be amended or amended and restated hereafter. Capitalized terms used but not defined in this Adoption Agreement shall have the
respective meanings ascribed to such terms in the Agreement. By the execution of this Adoption Agreement, the Holder agrees as follows. 

1.1 Acknowledgement. Holder acknowledges that Holder is acquiring certain shares of the capital stock of the
Company (the “Stock”) or options, warrants or other rights to purchase such Stock (the “Options”), for one of the following reasons (Check the correct box): 

 

	 	☐	 As a transferee of Shares from a party in such party’s capacity as an “Investor” bound by the
Agreement, and after such transfer, Holder shall be considered an “Investor” and a “Stockholder” for all purposes of the Agreement. 

  

	 	☐	 As a transferee of Shares from a party in such party’s capacity as a “Key Holder” bound by the
Agreement, and after such transfer, Holder shall be considered a “Key Holder” and a “Stockholder” for all purposes of the Agreement. 

  

	 	☐	 As a purchaser of Shares pursuant to the Company’s 2011 Equity Incentive Plan, as may be amended from time
to time, and after such purchase, Holder shall be considered a “Key Holder” and a “Stockholder” for all purposes of the Agreement. 

1.2 Agreement. Holder hereby (a) agrees that the Stock, and any other shares of capital stock or securities
required by the Agreement to be bound thereby, shall be bound by and subject to the terms of the Agreement and (b) adopts the Agreement with the same force and effect as if Holder were originally a party thereto. 

1.3 Notice. Any notice required or permitted by the Agreement shall be given to Holder at the address or facsimile
number listed below Holder’s signature hereto. 
  

									
				
	HOLDER:	 	 	 		 	ACCEPTED AND AGREED:
				
	By:	 	 	 		 	 JN PROJECTS, INC.

				
	Name and Title of Signatory	 		 	By:	 	 
					
	Address:	 	 	 		 	Title:

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