Document:

Exhibit 10.24

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

DEVELOPMENT, SUPPLY, AND LICENSE AGREEMENT

 

THIS AGREEMENT (“Agreement”) is dated this 1st day of Jan, 2011 (the “Effective Date”), by and between Smith Electric Vehicles US Corp of 12200 N.W. Ambassador Drive, Kansas City, MO 64163, USA (“Smith”), and Sensor-Technik UK Ltd, and Affiliates of Unit I, Stoke Mill, Mill Road, Sharnbrook, Bedfordshire, MK44 INN, UK (“Sensor-Technik”) (collectively the “Parties,” and each individually a “Party”), based upon the following recitals.

 

A.                                           Smith and Sensor-Technik desire to collaborate in the development, manufacturing, and sale of remote vehicle monitoring technology (defined hereafter and referred to as the Technology) as specified in Schedule A (“Products”), on the terms and conditions set forth in this Agreement;

 

B.                                           Smith desires to retain the services of Sensor-Technik to develop the Technology and Products specified in Schedule A on the terms and conditions set forth in this Agreement;

 

C.                                           Sensor-Technik desires to license the Technology and Products and know-how for non-competing uses as defined under the terms and conditions set forth in this Agreement;

 

D.                                           Smith desires to use the Technology and to manufacture the Products specified in Schedule A on the terms and conditions set forth in this Agreement; and

 

NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, the Parties agree as follows:

 

ARTICLE 1. DEFINITIONS

 

As used in this Agreement, the following words, when capitalized, have the meanings set forth below:

 

1.1                                      “Affiliate” means any business or other entity which is directly or indirectly controlling, controlled by or under common control with the specified entity, and control means direct or indirect ownership or actual control of at least fifty percent (50%) of the voting shares or other equity interest having power to elect directors or persons performing a similar function.

 

1.2                                      “Background Intellectual Property” of a Party means (a) the Intellectual Property of a Party that is owned or controlled by that Party before the Effective Date of this Agreement, or (b) created by a Party outside the scope of this Agreement.

 

1.3                                      “Confidential Information” means any and all information which that Party treats as confidential, whether the information is in oral, written, graphic or electronic form; provided that (a) if the information is in writing or other tangible form, it is clearly marked as “proprietary” or “confidential” when disclosed to the receiving Party or (b) if the information is not in tangible form, it (i) is identified as “proprietary” or “confidential” when disclosed and (ii) is identified in reasonable detail in a writing which is marked “proprietary” or “confidential” and is delivered to the receiving Party within

 

1

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

thirty (30) days after the date of disclosure by the disclosing Party to the receiving Party. Confidential Information excludes any information, data or material which (a) the disclosing Party expressly agrees in writing is free of any non-disclosure obligations; (b) is independently developed by the receiving Party or its Affiliates without reference to the Confidential Information of the disclosing Party (as evidenced by documentation in the receiving Party’s possession); (c) is lawfully received by the receiving Party or its Affiliates, free of any non-disclosure obligations, from a third Party having the right to so furnish the applicable Confidential Information; or (d) is or becomes generally available to the public without any breach of this Agreement or unauthorized disclosure of Confidential Information by the receiving Party or any of its Affiliates.

 

1.4                                      “Foreground Intellectual Property” means Intellectual Property resulting directly from and authored, conceived, developed, reduced to practice or otherwise created during the performance of this Agreement.

 

1.5                                      “Field of Use” means commercial electric vehicles.

 

1.6                                      “Independently Developed Foreground Intellectual Property” means Foreground Intellectual Property developed solely by a Party during the course of performing under this Agreement.

 

1.7                                      “Intellectual Property” means all rights in ideas, inventions, works of authorship, know-how, technical information, trade secrets, pending patent applications, patents, copyrights, trademarks, and Confidential Information.

 

1.8                                      “Products” means (i) those products and accessories identified in Schedule A, (ii) Service Parts, and (iii) Intellectual Property and rights for and concerning the Products identified in Schedule A.

 

1.9                                      “Technology” means remote vehicle monitoring through use of telemetry.

 

1.10                               “Territory” means the World. 

 

ARTICLE 2. SUPPLY OF PRODUCT

 

2.1                                      Development and Production of Prototypes. Sensor-Technik agrees to develop and produce Products that meet the specifications provided by or agreed on by Smith and as defined in Attachment B (“Product Specifications”). Such Product Specifications shall be dated and signed off on by both Parties and are incorporated herein by this reference. Sensor-Technik agrees to provide all on-going and final documents concerning the ownership and use of the web-site, software, source code, technical specification, build of materials, source supplier contact information, technical drawings, and other associated documents and information concerning the Product, Product use and integration, and Product manufacturing.

 

2.2                                      Initial Supply of Product. Until such time as Smith commences manufacturing production of the Product, Sensor-Technik agrees to use its best efforts to supply to Smith the Product at the prices set forth in Attachment A and in the quantities mutually agreed upon and as set forth in Smith’s purchase order. All sales of the Product shall be

 

2

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

made by purchase order, which may be provided by facsimile, email, or other mutually agreed to format. All purchase orders issued under this Agreement shall be deemed to incorporate and be governed by the terms and conditions of this Agreement. No increase in the Transfer Price of the initial supply of the Product may be made (whether on account of increased cost of materials, labor or transport costs, other fixed or variable costs, fluctuation in exchange rates, pricing errors or otherwise) without the prior written consent of Smith. In the event Smith changes the sourcing of components or parts making up the Product, as set forth in Schedule C, the Transfer Price for the Product produced by Sensor-Technik shall be adjusted by the difference of the cost for such part or component as set forth in Attachment C (the Costed BOM) and the newly sourced part, as established by the invoice for such part or component. Except for technical service fees which may be negotiated under Section 15.2 of this Agreement, Sensor-Technik shall have no rights to any additional fees or royalties for Product produced by Smith.

 

2.3                                      Rolling Forecast. Smith agrees to provide to Sensor-Technik on approximately the first day of each month a good faith rolling 3 month estimate of Product needs. The first ninety (90) days of the rolling forecast shall be a firm purchase commitment to Sensor-Technik by Smith.

 

2.4                                      Delivery Terms. All Products sold to Smith shall be sold Ex Works (Sensor-Technik facility) to the location designated by Smith. Title shall pass to the receiving Party simultaneously with passage of risk of loss to the receiving Party as specified in Incoterms 2000.

 

2.5                                      Testing and Inspection. In regard to all Products sold by Sensor-Technik to Smith, Sensor-Technik shall use commercially reasonable efforts to inspect and test Products prior to delivery.

 

2.6                                      Discrepancy. In regard to all Products sold by Sensor-Technik to Smith, if, after delivery, Smith discovers any discrepancy between (i) the quantity or type of Products ordered and that received or (ii) the quantity or type of Products invoiced and that received, Smith shall use best efforts to timely give notification of the discrepancy. Appropriate adjustments shall be made in the ordinary course.

 

2.7                                      Non-Conformity. In regard to all Products sold by Sensor-Technik to Smith, if the Products are non-conforming products to the specifications and requirements, Sensor-Technik shall use commercially reasonable efforts to supply conforming Products as soon as reasonably possible and shall be solely responsible for any costs in shipment in providing conforming products.

 

2.8                                      Warrantee by Sensor-Technik of Products Sold. All Products and associated device software sold by Sensor-Technik to Smith under this Agreement are warranted to be free from defects in material and workmanship under normal use for the period set forth in Attachment A. Sensor-Technik also warrants the Product design for the Product and associated device software both sold by Sensor-Technik to Smith and as manufactured by Smith to the specifications set forth in Attachment B. Sensor-Technik does not warrant the StormMQ component itself; Senso-Technik only warrants that the StormMQ is compatible with the Products and associated device software and meet the

 

3

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

specifications and requirement established by Smith. Sensor-Technik warrants that the Products are not subject to any infringement claims.

 

NO OTHER WARRANTIES, EXPRESS OR IMPLIED, ARE MADE WITH RESPECT TO THE PRODUCTS INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY.

 

2.9                                      Defective Products.  As used in this Agreement, the term “Defective Products” means any Product which fails to meet the warranty contained in Section 2.8 within the warranty periods described in Schedule A. “Defective Products” shall specifically exclude, without limitation, any Products (i) which have been subjected to misuse, negligence, accident, or improper maintenance, installation, or application or (ii) which have been altered without the Sensor-Technik’s prior written consent.

 

2.10                               Product Returns. At Sensor-Technik’s election, Smith shall either (i) return to a location designated by Sensor-Technik, at Sensor-Technik’s cost, any allegedly Defective Products for which claims are made, with a written explanation of the claimed failures, or (ii) make the allegedly Defective Products available Smith’s premises for inspection by Sensor-Technik’s or its designated representative.

 

2.11                               Notification. Smith agrees it shall give reasonable advanced notice to Sensor-Technik of any intended communications with Sensor-Technik’s suppliers, so as to permit a representative from Sensor-Technik to be involved in such communication. This obligation shall continue until such time as Smith commences manufacturing the Product.

 

ARTICLE 3. INTELLECTUAL PROPERTY RIGHTS.

 

3.1                                      Independent Ownership. Each Party is and remains the owner of its Background Intellectual Property and Independently Developed Foreground Intellectual Property, and the Parties understand and agree that, except as specifically set forth in this Agreement, no license or other rights, either express or implied, are granted by either Party to the other under this Agreement with respect to any Background Intellectual Property or any Independently Developed Foreground Intellectual Property, except as set forth in this Agreement. Each Party shall decide in its sole discretion whether it protects, and shall bear all costs of protecting, its Background Intellectual Property and Independently Developed Foreground Intellectual Property.

 

3.2                                      Infringement Claims. If any third party alleges that the manufacture, sale or use of Products or any individual component of any Products infringes upon a patent, copyright or other Intellectual Property right belonging to that third party, then each Party owning or claiming ownership to the Intellectual Rights of the alleged infringed Product shall defend, indemnify and hold harmless the other Party and its Affiliates from such claims and any resulting damages and expenses (including reasonable attorneys’, other professionals’ and court fees).

 

4

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

3.3                                      Party’s Failure to Act. If the indemnifying Party does not confirm that it will assume control of the defense of any infringement claim (and provide reasonable assurance regarding its fulfillment of this obligation), the indemnified Party shall have the right to take appropriate legal action and the indemnifying Party shall promptly reimburse the indemnified Party for all reasonable costs and expenses upon presentation of reasonable supporting documentation.

 

ARTICLE 4. IP OWNERSHIP AND RIGHT TO MANUFACTURE

 

4.1                                      IP Ownership. Irrespective of Article 3, the Parties agree that Smith owns all intellectual rights and know how to and concerning the Products and Specifications of the Product, as specified in Attachment D.

 

4.2                                      Smiths Right to Manufacture. Smith shall have the absolute right to manufacture the Products without any obligation to Sensor-Technik and Smith agrees to provide Sensor-Technik with a minimum of a ninety (90) days written notice of its intent to manufacture.

 

4.3                                      Sensor-Technik Right to Manufacture. Smith grants Sensor-Technik the right to manufacture and sell the Products to any party outside of the Field of Use and outside of the United States of America.

 

ARTICLE 5. EXCLUSIVITY AND TAXES

 

5.1                                      Exclusivity. Sensor-Technik shall not manufacture or sell the Products for direct competition with Smith within the Field of Use within the Territory. Notwithstanding the foregoing, Sensor-Technik shall be free to sell the Products to any party outside of the Field of Use and outside of the United States of America.

 

5.2                                      Taxes. Both Parties agree to cooperate with the preparation and filing of all documentation required to fulfill their respective obligations under this Agreement. This specifically includes the preparation and filing of any documentation which would reduce tax rates, including Value Added Taxes (VAT) and taxes on royalties. Smith will pay any applicable sales, use or similar tax imposed in connection with the sale of Product to Smith; provided, that Sensor-Technik shall not charge or collect, and Smith shall have no liability for, taxes on any sale of Product for which Smith has provided Sensor-Technik with an appropriate direct pay permit, resale certificate or other documentation evidencing an exemption from such taxes, or for which Sensor-Technik may eliminate or reduce such taxes through reasonable commercial efforts. For all sales of Items upon which tax reimbursement to Sensor-Technik is applicable, Sensor-Technik shall separately itemize all applicable taxes on invoices submitted to Smith.

 

ARTICLE 6. RECALL

 

6.1                                      Recall Procedures. If a recall or field corrective action caused solely by Defective Products provided or produced by Sensor-Technik is required, then Smith will promptly notify Sensor-Technik in writing of the required recall or field corrective action, with reasonable detail and with reasonable supporting documentation. The Parties shall immediately, diligently and in good faith work together to determine the cause of the

 

5

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

Defective Products, and shall immediately assist in preparing and implementing a recall or field corrective action of Defective Products. For Products produced and supplied by Sensor-Technik to Smith, Smith’s exclusive remedy, in the event of such a recall or field corrective action of Defective Products is for Sensor-Technik, at its option, to either repair or replace Defective Products or refund the purchase price for Defective Products and pay the reasonable cost of: (i) preparing, printing and mailing a recall notice to inform dealers, distributors and, customers of the nature of the recall, (ii) freight for replacement parts required to repair or replace Defective Products, and (iii) reasonable labor costs and expenses for the Smith to perform in-field replacement activities, if any, for Defective Products. However, Sensor-Technik shall have no liability for recall or field corrective action for any Product manufactured by Smith. Smith shall no liability to Sensor-Technik for any claims of any nature or kind for any product Sensor-Technik manufactures for its own use or that it sells. Sensor-Technik does not warrant the StormMQ component itself; Sensor-Technik only warrants that the StormMQ is compatible with the Products and associated device software and meet the specifications and requirement established by Smith.

 

ARTICLE 7. PRODUCT LIABILITY

 

7.1                                      Losses Defined. As used in this Article 7, the term “Losses,” when capitalized, means any loss, cost, damage and expense (including reasonable attorneys’, other professionals’ and court fees), arising from any death of or injury to any person, or damage to any property.

 

7.2                                      Indemnity for Losses. Sensor-Technik shall defend, indemnify, and hold harmless Smith for Losses proximately caused by Defective Products manufactured by Sensor-Technik, other than Losses which are proximately caused by (i) Smith’s acts or omissions, or the acts or omissions of any person which purchases, resells, uses, or operates Products, or (ii) misuse of the Products. If it cannot be readily determined whether or the extent to which the Losses were proximately caused by Defective Products, either Party may submit the matter to binding arbitration pursuant to Article 10 to determine the amounts attributable to the Defective Products or to each Party, as the case may be.

 

ARTICLE 8. LIMITATION OF LIABILITY

 

8.1                                      No Recovery of Certain Damages. IN NO EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT OR WARRANTY, ALLEGED NEGLIGENCE OR OTHERWISE, SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES.

 

ARTICLE 9. FORCE MAJEURE

 

9.1                                      Force Majeure Defined. Each Party shall be temporarily excused from performing its obligations under this Agreement (other than the payment of money) for so long as such performance is prevented or delayed by any event of Force Majeure. The term “Force Majeure” shall, for purposes of this Agreement, be defined as: (i) any acts of God, terrorism, natural disasters, or wars, or (ii) any act or omission of any government

 

6

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

authority. A Party affected by an event of Force Majeure shall promptly notify the other Party and shall use commercially reasonable efforts to overcome and mitigate such event of Force Majeure.

 

ARTICLE 10. GOVERNING LAW, ARBITRATION AND SPECIFIC PERFORMANCE

 

10.1                               Governing Law. This Agreement shall be governed by and construed according to the laws of the State of New York, USA. By its execution of this Agreement, each Party submits to the jurisdiction of any state or federal courts located in the State of New York, USA.

 

10.2                               Informal Settlement Procedures. The Parties shall attempt to settle any and all claims, disputes, controversies or differences arising between the Parties which arise out of or in relation to or in connection with this Agreement shall in the First instance be attempted to be settled as provided in Section 11.2, and if they are not settled by negotiation, they shall be resolved by binding arbitration upon written request of either Party.

 

10.3                               Arbitration Procedures. Any arbitration shall take place in New York, USA in accordance with the Arbitration Rules of the American Arbitration Association. The arbitration shall be conducted by a single neutral arbitrator agreed upon by the Parties. In relation to any matters not governed by such rules, the arbitrator shall determine the rules of procedure to be followed, provided, however, that in such case, the opportunity to cross-examine any witness shall be given to both Parties upon request of either Party.

 

10.4                               Entry of Judgment. The arbitration award shall be final and binding upon both Parties, and judgment on the arbitration award may be entered in any court having jurisdiction over the Party against whom enforcement is sought or such Party’s property, and application may be made to such court for judicial acceptance of the award or an order of enforcement, as the case may be.

 

ARTICLE 11. TERM AND TERMINATION

 

11.1                               Term of Agreement. The term of this Agreement shall be perpetual. This Agreement may be terminated by either Party upon a material breach of the non-terminating party, subject to section 11.2 and the terms and conditions of this Agreement.

 

11.2                               Notice of Default; Informal Discussions. In the event of a claimed material breach by either Party, the non-breaching party shall provide to the breaching Party a notice of default. Such notice shall clearly specify the nature of the alleged default and what actions it believes are required to correct the default. Upon receipt of said notice of default, the defaulting party shall have sixty (60) days to correct the default. If, following the sixty day cure period the matter is not resolved, either Party may notify the other Party that it requests that the Parties attempt to resolve the dispute or determine the remedy for the event of default pursuant to informal dispute resolution. The notice of informal dispute resolution must provide reasonable details describing the nature of the default. Within fifteen (15) days after either Party receives a notice requesting informal dispute resolution, an authorized representative of each Party shall meet and confer for a reasonable period of time to: (i) exchange information pertaining to the dispute or event

 

7

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

of default, and (ii) attempt in good faith to agree upon a resolution to the dispute or a remedy for the event of default, as applicable. If the informal dispute resolution procedures or corrective action plan fail to resolve the dispute or achieve an agreement on the remedy for the event of default within sixty (60) days after the receipt of the notice requesting informal dispute resolution, then either Party may pursue arbitration pursuant to Article 10.

 

11.3                               Effect of Termination. In the event Sensor-Technik terminates this Agreement pursuant to this Article 11, Smith shall have no further liability to Sensor-Technik other than to pay for Product ordered by Smith and subsequently delivered by Sensor-Technik.

 

11.4                               No Prejudice. The provisions of this Article are without prejudice to any other rights or remedies either Party may have by reason of the default of the other Party.

 

ARTICLE 12. CONFIDENTIALITY

 

12.1                               Scope of Use. Each Party agrees that it shall not use or disclose any of another Party’s Confidential Information, except as authorized herein. All Confidential Information of a Party shall remain such Party’s property during and after the term of this Agreement.

 

12.2                               Non-Disclosure. Each Party (the “Receiving Party”) shall protect all Confidential Information of the other Party (the “Disclosing Party”) against disclosure to third parties in the same manner as it would protect its own similar confidential information against disclosure to others for a period from the Effective Date until two (2) years following termination of this Agreement. Notwithstanding the above, during such period, each Party may make any disclosure of any of the Disclosing Party’s Confidential information to (i) its Affiliates, (ii) its and its Affiliates’ employees, agents, and consultants who have a need to know and (ii) any others to whom such disclosure is expressly authorized hereunder and is necessary to the Receiving Party’s fulfillment of its obligations hereunder. The Receiving Party shall appropriately notify each person to whom any such disclosure is made that such disclosure is made in confidence and shall be kept in confidence by such person. If the Receiving Party reasonably believes that disclosure of Confidential Information is required in accordance with applicable law, then prior to such disclosure (if permitted under applicable law) the Receiving Party shall (a) notify the Disclosing Party and afford the Disclosing Party an opportunity to limit the scope of the required disclosure and (b) take reasonable efforts to minimize the extent of any required disclosure and to obtain an undertaking from the recipient to maintain the confidentiality thereof.

 

ARTICLE 13. INSURANCE

 

13.1                               Insurance. Each Party (or an Affiliate of a Party shall on behalf of that Party) shall obtain and maintain consistent with the provisions of this Agreement, at its sole expense, the following types of insurance coverage, to remain in force during the term of this Agreement as follows: Commercial General Liability covering liability arising from premises, operations, independent contractors, product liability, products-completed operations, personal and advertising injury, and blanket contractual liability $            US each occurrence.

 

8

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

ARTICLE 14. PAYMENT

 

14.1                               Method of Payment. Any payments to Sensor-Technik under this Agreement shall be net ninety (90) days from date of shipment, made by wire transfer to such bank or account as Sensor-Technik shall specify in writing from time to time, or as otherwise mutually agreed, and shall be made in US Dollars.

 

14.2                               Late Payments. Any amounts not paid by Smith when due under this Agreement shall be subject to interest from the date payment is due through the date upon which Sensor-Technik has collected immediately available funds in an account designated by Sensor-Technik at a rate equal to the sum of six percent (6%) per annum, calculated daily on the basis of a 360-day year.

 

ARTICLE 15. TECHNICAL SUPPORT AND DEVELOPMENT FEE

 

15.1                               Integration. Smith shall pay to Sensor-Technik a project fee in the amount of [***] for Sensor-Technik’s technical and engineering support, development of the Product, and the integration of the Product into Smith’s vehicle platform. No additional fees are due from Smith to Sensor-Technik for the Product, other than the Transfer Price for Product Manufactured by Sensor-Technik for Smith as set forth in Section 2.2 of this Agreement.

 

15.2                               On-going Support. Sensor-Technik agrees to provide technical and engineering support for the Product and the manufacturing of the Product on an as needed and on-going basis. The Parties agree to negotiate in good faith, and to enter into a consulting agreement concerning this on-going technical support.

 

ARTICLE 16. GENERAL PROVISIONS

 

16.1                               No Inducement. The Parties represent to each other and each agrees that, neither it nor any person acting on its behalf has, in contravention of any applicable law, given or offered to give or shall give or offer to give any sum of money or other material consideration to any person, directly or indirectly, as an inducement to obtain business under this Agreement or to influence the granting of licenses or other governmental permissions to enter into this Agreement or perform obligations hereunder.

 

16.2                               Government Approvals; Regulatory Requirements.

 

(a)                                    Sensor-Technik and Smith, respectively, shall be responsible for compliance with and for the obtaining of approvals and permits as may be required under country, international, federal, state, and local laws, ordinances, regulations, and rules for the performance of their respective responsibilities and obligations under this Agreement.

 

(b)                                    For Products manufactured by the Party, that Party is responsible for final quality control testing, for providing adequate warnings and instructions for use of the Products (including proper labeling and packaging), and release of Product documentation. Each Party shall be responsible for reporting to the other Party any adverse events related to the Products or their use.

 

9

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

16.3                               No Agency. This Agreement does not constitute either Party the agent or legal representative of the other Party. Neither Party is authorized to create any obligation on behalf of the other Party.

 

16.4                               Assignment. Neither Party may assign any of its rights or obligations under this Agreement without first obtaining the written consent of the other; provided, however, that both Parties have the right to assign any of its rights or obligations hereunder to any division, subsidiary, or Affiliate of the Corporation, or to any successor to its business. Nothing herein shall preclude either Party from subcontracting any of its obligations under this Agreement to any other party.

 

16.5                               No Implied Waiver. The failure of either Party at any time to require performance by the other Party of any provision of this Agreement shall in no way affect the full right to require such performance at any later time. The waiver by either Party of a breach of any provision of this Agreement shall not constitute a waiver of the provision itself. The failure of either Party to exercise its rights provided under this Agreement shall not constitute a waiver of such right.

 

16.6                               Notices. Any notice under this Agreement shall be in writing (letter, email or facsimile) and shall be effective upon receipt or refusal or failure to accept receipt by the addressee at its address indicated below.

 

(a)                                      Notice sent to Smith shall be addressed as follows:

 

Smith

Attention: Robin Mackie, CTO

Email: Robin.Mackie@smithelectric.com

Facsimile: 816.464.0510

Telephone: 816.464.0508

 

With copies to:

Attention: Jacques Schira, General Counsel

Email: Jacques.schira@smithelectric.com

Facsimile: 816.464.0510

Telephone: *****

 

(b)                                     Notice sent to Sensor-Technik shall be addressed as follows:

 

Sensor-Technik

Attention: Mark Wood, UK Engineering Manager

Email: mark@sensor-technik.co.uk

Facsimile: 01234 782054

Telephone: 01234 782049

 

With copies to:

Attention:

Email:

Facsimile:

Telephone:

 

10

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

Smith – Sensor-Technik Development, Supply, and License Agreement

 

(c)                                       The Parties by notice given in accordance with this Section may designate other addresses to which notices shall be sent.

 

16.7                               Amendments. This Agreement supersedes all previous agreements, oral or written, between Smith and Sensor-Technik with respect to the subject matter of this Agreement. No amendment or modification to this Agreement shall be binding upon either Party unless it is in writing and is signed by both Parties.

 

16.7                               Headings. The Article, Section, and/or Paragraph headings in this Agreement are used for convenience of reference only and shall not be deemed a part of this Agreement for any purpose.

 

16.9                               Severability. If any provision of this Agreement shall be held to be invalid, illegal, or unenforceable under any statute, regulation, ordinance, executive order, or other rule of law, that provision shall be deemed severed to the extent necessary to comply with such statute, regulation, ordinance, order, or rule, and the Parties shall negotiate in good faith to arrive at an alternative replacement provision approximating the Parties’ original business objective. The remaining provisions of this Agreement shall remain in effect.

 

16.10                        Entire Agreement. This Agreement contains all the representations and agreements between the Parties hereto and there are no other agreements or understandings, oral or in writing, regarding the matters covered by this Agreement. No terms submitted by either Party which are in addition to or inconsistent with those set forth in this Agreement shall apply to this Agreement unless agreed to in a writing signed by both Parties. The Exhibits attached to this Agreement are made a part of and incorporated in this Agreement.

 

16.11                        Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile of this Agreement or an executed counterpart shall be deemed a good and valid execution and delivery of this Agreement.

 

IN WITNESS WHEREOF, Smith and Sensor-Technik have caused this Development and Supply Agreement to be executed by their duly authorized representatives as of the day and year first above written.

 

	
Smith Electric Vehicles Us   Corp.
    	
 
    	
Sensor-Technik   UK, Ltd.
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
By
    	
 
    	
/s/   Robin Mackie
    	
 
    	
By
    	
 
    	
[ILLEGIBLE]
    	
 
    
	
Title
    	
 
    	
CTO
    	
 
    	
Title
    	
 
    	
[ILLEGIBLE]
    	
 
    

 

 

Attachment A - Products, Pricing, and Warrantee

 

·              The Product is made up of those Components set forth in Attachment D and built to the specifications set forth in Attachment C.

 

11

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 

·              The Transfer Price for Product produced by Sensor-Technik and delivered to Smith shall be as set forth in the following table. The Transfer Price may vary depending on PO delivery time table.

 

·              The Product warrantee period is five (5) years from the date the Product is received by Smith.

 

Attachment B – Product Specifications

 

Product Specifications are set forth in the attached “Smith Power Telematics System — Project Specification Document (issued 27th April 2010), incorporated herein by this reference.

 

Attachment C – Costed Build of Materials

 

The Costal Build of Materials (BOM) is attached in the spread sheet entitled “Smith Power Telematics System BOM” dated         .

 

Attachment D – Components

 

The Product is comprised of the following components. This chart details the ownership of these components:

 

 

	
Component
    	
 
    	
Item
    	
 
    	
Ownership
    
	
Remote Device
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Printed   Circuit Board (TAD 260)
    	
 
    	
Smith
    
	
 
    	
 
    	
Firmware   (including all source code)
    	
 
    	
Smith
    
	
 
    	
 
    	
Compression   algorithm (developed by StormMQ)
    	
 
    	
Smith
    
	
 
    	
 
    	
Storm   MQ AMQP client
    	
 
    	
Open   Source Code
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Server
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Business   logic (Java Application)
    	
 
    	
Smith
    
	
 
    	
 
    	
Sysadmin   scripts (DOE and Cenex scripts)
    	
 
    	
Smith
    
	
 
    	
 
    	
Database   schema
    	
 
    	
Smith
    
	
 
    	
 
    	
The   website (including all source code, layout and design)
    	
 
    	
Smith
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Additional   Software
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   HEX loader software (including all source code)
    	
 
    	
Smith
    
	
 
    	
 
    	
The   VAS software (including all source code)
    	
 
    	
Smith
    

 

12

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.  Omitted portions have been filed separately with the Commission.

 

Attachment A - Product Pricing

 

EDISON

 

	
Sensor-Technik UK P/N
    	
 
    	
Description
    	
 
    	
List Price
    	
 
    	
 
    
	
Z/Smith-02A
    	
 
    	
Edison Cable Loom
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-02B
    	
 
    	
Edison Ambient Temp Sensor
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-02C
    	
 
    	
Edison DCDC Current Sensor Assembly
    	
 
    	
[***]
    	
 
    	
Optional
    
	
Z/Smith-02D
    	
 
    	
Edison Aircon Current Sensor Assembly
    	
 
    	
[***]
    	
 
    	
Optional
    
	
Z/Smith-02E
    	
 
    	
Edison Heater Current Sensor Assembly
    	
 
    	
[***]
    	
 
    	
Optional
    
	
Z/Smith-02F
    	
 
    	
Edison Smith Link Remote Device
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-02G
    	
 
    	
Edison Antenna Assembly
    	
 
    	
[***]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
[***]
    	
 
    	
 
    

 

NEWTON

 

	
Sensor-Technik UK P/N
    	
 
    	
Description
    	
 
    	
List Price
    	
 
    	
 
    
	
Z/Smith-03A
    	
 
    	
Newton Cable Loom
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-03B
    	
 
    	
Newton Ambient Temp Sensor Assembly
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-03C
    	
 
    	
Newton DCDC Current Sensor Assembly
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-03D
    	
 
    	
Newton Aircon Current Sensor Assembly
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-03E
    	
 
    	
Newton Heater Current Sensor Assembly
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-03F
    	
 
    	
Newton Smith Link Remote Device
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-03G
    	
 
    	
Newton Antenna Assembly
    	
 
    	
[***]
    	
 
    	
 
    
	
Z/Smith-03H
    	
 
    	
Molex Mating Kit - Vehicle Side
    	
 
    	
[***]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
[***]
    	
 
    	
 
    

 

A-1

 

***Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. Statement of Warranty Product: Smith
  Link Remote Device & Harness Assembly Effective Date: 31/01/2011 Warranty
  Period: 5 Years (from date of dispatch) All products manufactured by or for
  Sensor-Technik UK will be warranted for a period of 5 years from date of
  dispatch to Smith Electric Vehicles. This warranty covers the following
  products: . TAD-290 Remote Device & firmware . Remote Device Cable Loom
  Assembly . Design of device, firmware and cable loom assembly The following
  conditions apply to this warranty: 1. The hardware warranty only applies to
  devices manufactured by TAD Electronics for Sensor-Technik UK and cable loom
  assemblies manufactured by Sensor-Technik UK for the Smith Link Application.
  2. This warranty also covers the software supplied with the device with the
  following restrictions: a. The warranty is only applicable if the software is
  supported and maintained by TAD Electronics. b. If the software is supported
  and maintained by someone other than TAD Electronics, Sensor-Technik UK will
  warrant the design only. c. If changes are made, without authorisation from
  Sensor-Technik UK, then the design warranty will be void. 3. If suppliers
  other than TAD Electronics (for devices) and Sensor-Technik UK (Cable looms)
  are used, Sensor-Technik UK will provide a warranty for the design only with
  the following conditions: a. If alternative suppliers are to be used,
  Sensor-Technik UK will need to authorise any change, removal or adjustment of
  components. Failure to do so will void the design warranty. b. If an
  alternative supplier deviates, without authorisation from Sensor-Technik UK,
  from the assembly instructions supplied by Sensor-Technik UK, the design
  warranty will be void. 4. If goods are returned to Sensor-Technik UK under
  warranty and found with no fault, Sensor-Technik UK reserves the right to
  invoice Smith Electric Vehicles for any and all charges incurred and will
  return the goods to Smith Electric Vehicles, the cost of which is to be
  covered by Smith Electric Vehicles. 5. Sensor-Technik UK will make every
  effort to repair and return an original device or cable loom. In the event
  that a repair is not possible or feasible, like-for-like replacements will be
  supplied. 6. Any returns from Smith Electric Vehicles should be accompanied
  by a complete RMA form (available on request from Sensor-Technik UK). Returns
  without a complete RMA form may take longer to complete and may incur
  processing charges. 7. If the reason for return is to bring early hardware
  versions up to the present iteration, Sensor- Technik UK may levy a charge to
  cover the costs of labour involved when applicable. 8. Sensor-Technik UK maintains
  a complete list of all devices and systems dispatched and will use this list
  when assessing any warranty claims. This list is automatically updated and
  sent to the Smith Electric Vehicles Telemetry Team with each shipment of
  devices and is also available on request. 9. This warranty only covers
  products supplied for Smith Link, any other products supplied by Sensor-
  Technik UK to Smith Electric Vehicles are not subject to the conditions of
  this warranty. For Sensor-Technik UK Mark Wood General Manager –
  Sensor-Technik UK 

  

 

A-2

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. SMITH ELECTRIC VEHICLES Smith Power
  Telematics System Project Specification Document Author –Alan Malby
  Powertrain Manager - Smith Electric Vehicles Ltd Issued: 27th April 2010
  Issue 06 Draft For Discussion Smith US Business Lead Smith US Technical Lead
  Smith UK Technical Lead R. Mackie A. Malby This document including without
  limitation the specifications for Project , constitutes SEV Confidential
  Information and Background Intellectual Property. Do not use or disclose
  except to the extent permitted under the agreement between all members.
  Strictly Confidential 

  

 

B-1
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. Document History Version Amendment 1.0
  Draft Created as an original document 2.0 Draft Various updates post
  all-party discussion 3.0 Draft Various updates post audio on 4th Feb 2010 4.0
  Draft Various Updates post receipt of DOE and confirmed LCVPP requirement 5.0
  Draft Various Updates – confirm vehicle platform system complexity matrix 6.0
  Draft Various Updates – branding, 

  

 

B-2
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. Table of Contents Document History 2 1
  GENERAL INFORMATION 7 1.1 CONFIDENTIALITY 7 1.2 PURPOSE 7 1.3 Scope 7 1.4
  PATENTS, INDUSTRIAL PROPERTY RIGHTS, COPYRIGHTS and EXCLUSIVITY 7 2
  ORGANISATION 8 2.1 PROJECT MANAGEMENT 8 2.2 Organisation Chart 8 2.2.1
  Overall Project Framework Milestones and Gateways 9 2.2.2 Key Systems Comms
  Protocol Info 9 2.2.3 One Page Timing Plan 11 2.3 RASIC 12 2.4 Design
  Activities 12 2.4.1 Change Management 12 2.5 Design Validation Activities 12
  2.6 Purchasing Activities 13 3 COST 13 3.1 Fixed and Operating Costs 13 3.2
  Bulk Purchase and Economies of Scale 13 4 Product Description 14 4.1 Hero
  Card 14 4.2 Concept 14 4.3 Active Modes of Operation 15 4.4 Server 15 4.4.1
  Server Security 15 

  

 

B-3
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission. 4.4.2 Data Back-Up and Archiving
  15 4.5 Web Interface 15 4.6 User Access Levels 16 4.7 Vehicle Access Software
  (VAS) 16 4.8 Markets and Territories 16 4.9 Service Training Plan and
  Literature 16 5 Design Requirements 18 5.1 Future Proofing 18 5.2 Remote
  Device 18 5.3 RD, Data Logging Parameters, VAS and Web UI 19 5.3.1 National
  and Global Network Service Provider Coverage Area Vs Cost 19 5.4 Server
  Maintenance and Updates 19 5.5 Wake-Up Strategy 20 5.5.1 Valance/Zebra/ENOVA
  Systems 20 5 DVP & R 21 5.1 Component Level Testing 21 5.2 Vehicle Level
  Testing 21 5.3 Server Level Testing 21 5.4 Vehicle Access Software (VAS) 21
  5.5 DVP & R 21 6 Quality 22 6.1 Overall Quality Targets and Measures 22
  6.2 Manufacturing Quality Planning 22 6.3 Assured Quality Lessons Learned 22
  6.3.1 RMA Process and Warranty 23 6.4 Supplier Quality Planning 24 

  

 

B-4
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission. 6.5 First Off 24 6.6 Conformity
  of Production 24 6.7 Project Issues Management 24 Appendices 

  

 

B-5
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. Tables Table 1 - Newton Platform - Key
  System Complexity 9 Table 2 - Edison Platform - Key System Complexity 9 Table
  3 - Fixed and Operating Cost Summary 13 Figures Figure 1 - System
  Architecture - Newton 120kW, ENOVA based system as example 14 Figure 2 -
  Valance Wake Up Sequence 20 Figure 3 - ENOVA Wake Up Sequence 20 

  

 

B-6
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. 1 GENERAL INFORMATION 1.1
  CONFIDENTIALITY . This specification is subject to the terms as defined
  within the SEV heads of terms and all subsequent contracts made available to
  Sensor Tecknik. 1.2 PURPOSE . The Product Design Specification is intended to
  clearly define the technical requirements and responsibilities which are to
  be used by the project in the development of the systems, sub- systems and
  components of the Telematics Project. Due to legacy product complexity and
  timing challenges a thorough and complete set of information such as
  information protocols is beyond the scope of this and any single document.
  Such technical specifics are supplied in separate documents. See Appendices
  for further information. 1.3 Scope . The scope of this document is
  compromised by the fact that full DOE data mining and report out is not yet
  fully understood. It is accepted that further NRE costs will be incurred once
  this is fully understood and if further HW development is required. Currently
  PO ref: 3/31/2010-496 covers development of all HW, SW and server
  specification up to and including Level A and B iterations. o It is envisaged
  that this specification will cover ALL aspects of the CENEX LCVPP data
  requirement (subject to satisfactory independent testing) o It is envisaged
  that this PO will cover SOME aspects of the US DOE data requirement (subject
  to satisfactory independent testing) . The Server UI, function and report out
  specification is also beyond the scope of a single document and it has been
  agreed that this will take place jointly. Verbal exchange, interaction with the
  UI and direct development is the quickest route to a finalised specification.
  1.4 PATENTS, INDUSTRIAL PROPERTY RIGHTS, COPYRIGHTS and EXCLUSIVITY . As per
  all subsequent contracts made available to Sensor Technik. 

  

 

B-7
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. 2 ORGANISATION 2.1 PROJECT MANAGEMENT .
  The supervision of the development of the Telematics project is the
  responsibility of the SEV Project team. . The RASIC Section defines the
  allocation of activities between the suppliers and SEV. . It is the
  responsibility of the supplier to manage and monitor the progress of
  responsible tasks and to act to protect the program timing when necessary.
  Together with Smith the Supplier must support and maintain an up to date
  program log of all actions, planning, costing activities and have this
  available for the project team to review periodically. Supplier project
  management resource and some supplier design resource MUST be available on
  site at SEV UK, Washington as and when the project requires. 2.2 Organisation
  Chart Telemetry Project Organisation SEV US SEV UK ST – Development Adept
  Science 

  

 

B-8
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 2.2.1
  Overall Project Framework Milestones and Gateways It will not be possible to
  deliver the full technical specification at first release. This will be
  delivered over a series of two iterations (Level A and Level B). Due to
  legacy complexity it will also not be possible to deliver the system across
  ALL Smith EV platforms in a single development. Vehicle System supplier
  complexity is summarised in the following Tables: A B C Motor [***] [***]
  [***] Battery [***] [***] [***] Charger [***] [***] [***] Reference Name Old
  Current (DOE) New Product (DOE) Table 1 - Newton Platform - Key System
  Complexity A B C Motor [***] [***] [***] Battery [***] [***] [***] Charger
  [***] [***] [***] Reference Name Old Current (Sains Fast Charge) New Product
  (LCVPP) Table 2 - Edison Platform - Key System Complexity 2.2.2 Key Systems
  Comms Protocol Info [***]Comms Protocol: [***] [***] Comms Protocol: [***]
  [***]Comms Protocol: [***] [***]: [***] 

  

 

B-9
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - Roll
  out of the system to Smith platforms will be in the following order under PO:
  3/31/2010-496 Priority ONE and In Parallel – delivered in Level A Sample
  Newton: [***] Edison: [***] Priority TWO – delivered in Level B Sample
  Newton: [***] Edison: [***] Priority THREE – not covered by this PO but for
  future consideration Edison PV[***] Edison CC and PV [***] Newton[***] 

  

 

B-10
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 2.2.3
  One Page Timing Plan High level Dates are shown in the Figure below. M T W Th
  F M T W Th F M T W Th F M T W Th F M T W Th F M T W Th F M T W Th F M T W Th
  F M T W Th F M T W Th F M T W Th F M T W Th F M T W Th Specs and Commercials
  Issue Pre-lim Spec Issue Coomercial Terms Trial "#2" Commercials
  Agreed Commercial Vehicle Show Agree Plan for Telemetry at CV Show Start
  Develop "Show Version" Final review for CV Show Release Show
  Version Show START-FINISH Main Development Program Finalise Spec for current
  PO Dev Work Remote Device Commence Place PO for LCVPP HW and Harness Package
  Confirm Newt and Edison Confirm Specs for current clamps, temp sensors
  Install & Test RD on Newt and Edison Generate Foundation Install SOP
  Volume Pricing Discussion (SEV US) Place PO for DOE (SEV US) 1st Edison LCVPP
  Vehicle Ready to Ship with Telemetry 1st Newton DOE Vehicle Ready to Ship
  with Telemetry MIRA Independent Assessment Install RD on Zebra Spec Vehicle
  Develop Med-Dea based platform Continuous Improvement Program Capture Issues
  and Begin expanded GUI development Wk 20 Wk 21 TBD Wk 22 Wk 13 Wk 14 Wk 15 Wk
  23 Wk 16 Wk 17 Wk 18 Wk 19 Wk 25 Wk 24 Week Week 1 Week 2 16 17 18 19 20 21
  22 23 24 25 Week April April April April April May May May May May June June
  Comments: 1) Pricing and PO for US parts pending Line 23 2) DOE build start
  pending Line 23 too 3) MIRA testing can only commence IF we have a vehicle to
  ship. Consider a none LCVPP vehicle as a substitute for 2 weeks. [***] [***]
  [***] [***] [***] 

  

 

B-11
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 2.3
  RASIC Task SEV Sensor Technik [***] [***] [***] [***] [***] [***] [***] [***]
  [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***]
  [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] Key:
  R – Responsible; A – Accountable; C – Consulted; I – Informed 2.4 Design
  Activities The design activity will be shared across all partner companies
  however. Specific responsibilities are shown in the RASIC. 2.4.1 Change
  Management All changes during the project are subject to the approval of SEV
  through the Project meeting forum. If SEV request it, the supplier is to
  confirm the effects of any change with the submission of Project Change
  request. A part life cycle record (design history, modification record) is to
  be maintained by the supplier. All amendments including those relating to the
  production process, logistics and manufacturing are to be documented and
  recorded. 2.5 Design Validation Activities The design validation activity
  will be shared across all partner companies however. Specific validation
  tasks are shown in the RASIC. [***] 

  

 

B-12
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 2.6
  Purchasing Activities Purchase requests will be made via SEV US for Project
  NRE and parts for DOE platforms. SEV UK will place purchase requests for
  LCVPP since they are currently separate financial entities. 3 COST 3.1 Fixed
  and Operating Costs More to be added – pending confirmation of spec for
  [***]. [***] 3.2 Bulk Purchase and Economies of Scale The supplier will
  provide volume pricing summary to Smith Electric Vehicles. 

  

 

B-13
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 4
  Product Description 4.1 Hero Card 4.2 Concept The system comprises a Remote
  Device, GPRS network, Server, Web Interface and Storage Unit. The Remote
  Device (RD) will observe directly defined set of [***], [***]and [***]based
  signals which will vary dependent upon [***] signal source generator as a
  function of supplier choice. These signals will then be transmitted via
  Global Packet Radio Service (GPRS) for handling and display by the server
  using a Web Interface. The RD shall also determine the operational state of
  other consumable domestic systems such as HVAC. Figure 1 - System
  Architecture - [***] based system as example Telemetry Delivers o Improved
  customer focus, shareholder value, customer service and satisfaction o
  Increased understanding of vehicle/system performance indicators/parameters o
  Increased understanding of customer usage profiles o Increased efficiencies
  in SEV logistics o Warranty Cost Reduction o The foundation for a Saleable
  Remote Asset Management System o Potential to be used as an EOL Process o
  Compliance with USA and UK funding body data mining requirements [***] 

  

 

B-14
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - The
  server side will also store all of this information; associate it with its
  client side RD and the vehicle for export/analysis in real time and at a
  later date. The RD will incorporate a data logging device to maintain the
  minimum requirement that allows a field service Engineer to retrieve data
  from the vehicle in the event of GPRS network coverage/Server side failure.
  The system will be transparent to vehicle system, sub-system and component
  performance and will not impact safety or homologation. 4.3 Active Modes of
  Operation The RD (client side) will be OFF with zero current draw when the
  vehicle is switched OFF. The RD will transmit and log in both vehicle charge
  and discharge modes. 4.4 Server The server side will be always active,
  regardless of vehicle mode of operation and available to monitor the status
  of all RDs at all times. This includes access and retrieval of stored data.
  4.4.1 Server Security The supplier will provide a statement on server
  security stating that any and all known standards are complied with. 4.4.2
  Data Back-Up and Archiving The capacity of the server should be sufficient to
  store a minimum of [***] months worth of data for [***] vehicles. The server data
  shall NEVER be deleted moreover this will be compressed and archived and
  stored on a different server but will none the less be freely and directly
  available to SEV US/SEV UK Engineers for immediate analysis. 4.5 Web
  Interface The web Interface will allow the user to see which RDs are
  currently active, failed or switched off. Vehicle charge/discharge state etc.
  The web interface will support the analysis of vehicle system location,
  vehicle route, vehicle speed statistics and system performance statistics.
  The interface will support the need to view this data in real time as well as
  act as the data post-processing front end for stored data. The web interface
  will be capable of monitoring data in real-time via direct display and also
  have the ability to produce summary reports and act as an automated End of
  Line facility. There will be some “core” parameters that apply across all
  platforms however; due to the different design and specification of existing
  and potential future systems a “schema” type utility for “mapping” Web
  Interface displayed items to all of the potential future system performance
  parameters will be required. Therefore the Web Interface SW must include a
  means of “adding” and recognising the different vehicle systems and their
  associated data. 

  

 

B-15
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - It is
  intended to have “carry over” vehicle telemetry HW – employ a “1 kit fits
  all” philosophy” – however vehicle platform variation means that the server
  must recognise that the RD is fitted to a particular platform: e.g recognise
  the difference between Newton and Edison and configure the UI display and all
  subsequent statistics accordingly. 4.6 User Access Levels User access will be
  granted by password. The system will have the functionality to add new users
  and amend access levels. The system currently should afford access to 2
  levels of user. Activity/Access Level Super User (SEV Personnel) Fleet
  Manager (none SEV Personnel) [***] [***] [***] [***] [***] [***] [***] [***]
  [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***]
  [***] [***] [***] [***] [***] [***] 4.7 Vehicle Access Software (VAS) There
  will remain the minimum requirement that a service technician shall be
  capable of retrieving data from the data storage device should the telemetry
  fail. The VAS will replicate the server functionality in its entirety. It
  will support retrieval of data from the RD via hard-wire link preferably USB.
  4.8 Markets and Territories The system components will be certified to ALL
  required or suitably related automotive and telecommunication standards in
  USA, UK, South America, Europe, India, China, Hong Kong, Australasia, Arab
  Nations, South Africa and other emerging markets with a particular emphasis
  on electromagnetic compatibility. The supplier will provide objective
  data/statement in support of it’s upholding that the RD is specified with all
  appropriate automotive EMC standards. 4.9 Service Training Plan and
  Literature Successful role out will require a plan to train key individuals
  at a level appropriate to their user access authority. Super User Level:
  [***] days (assumes user already has expert level of vehicle system
  knowledge) Fleet Manager Level: [***] days 

  

 

B-16
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 4.10
  Branding The RD “box” will be branded “SMITHtel-m” - no formal Font
  Description but equivalent motor example is shown below. Paint Spec: RAL 2008
  Supplier: http://pdf.shepherdmarine.com/colour_charts/ral_chart.html 4.11
  Remote Device Firmware Updates Updates will be achieved by USB auto-update
  process. 

  

 

B-17
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 5
  Design Requirements 5.1 Future Proofing The system design and specification
  is future proofed as far as is possible with the current level of information
  for the addition and integration of further power train systems and vehicle
  subsystems. Namely: 1. [***] CEU – using [***] Communication Protocol 2.
  [***] Inverter - using [***]Communication Protocol 3. [***] Inverter - using
  [***] Communication Protocol 4. [***] Charger – using [***] Communication
  Protocol 5. [***] Battery Systems and associated Charger using [***] 6. [***]
  Charger using [***] 7. [***] (Option 1) – using [***] – max [***]Kbps 8.
  [***] (Option 2) – using [***] – max [***]Kbps 9. ICE Range Extender – using
  [***]??? 10. Fourth [***] 11. Air Conditioning System Status 12. Ambient
  Temperature Measurement a. Cabin b. External ambient 13. Requirements of DOE
  Data Mining Exercise 14. Requirements of LCVPP Mining Exercise 5.2 Remote
  Device The [***]-Bit RD I/O has been biased towards the expected increased
  use of [***] in vehicle systems going forward. The DOE requirement is
  unclear. Current RD I/O spec is as follows: [***] [***] Ports [***] [***]
  Ports Frequency IN [***] OFF (max [***] KHz) Digital Outputs [***] OFF (low
  side switching) Current TD [***] OFF Voltage Inputs [***] OFF Temp Sensor
  Inputs [***] OFF Dedicated diagnostic Port – (for supplier use only) Sealing:
  IP [***] rated and all other requirements are to match those experienced in
  an automotive environment. 

  

 

B-18
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 5.3
  RD, Data Logging Parameters, VAS and Web UI See Attribute Specification
  spreadsheet for specific details of these. It has been accepted that UI
  layout/configuration and complete functionality specification is beyond the
  scope of this document and this will be developed as the project progresses
  via reviews/hand drawings etc. 5.3.1 National and Global Network Service
  Provider Coverage Area Vs Cost The network provider should be sourced as a
  function of maximum coverage area. It is permissible to use the same provider
  for all geographical locations if possible. Cost should not be considered as
  a disabler to coverage. AT&T should be included when consideration is
  given to sourcing the network provider. A clear statement that confirms that
  there is sufficient bandwidth and a rapid uplink speed will be required.
  [***] will be used in the US [***] will be used in the UK 5.4 Server
  Maintenance and Updates Servicing philosophy remains open subject to
  commercial negotiation and development of the SEV Server strategy. 

  

 

B-19
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission. Omitted Portions have been filed
  separately with the Commission. Telematics Specification 5.5 Wake-Up Strategy
  5.5.1 [***] Systems The RD should wakeup within [***] second of receipt of
  power. This specification ensures that the RD is awake and online to monitor
  [***] and [***] systems wake-up. Remote Device Wake-Up Sec Remote Device
  Remote Device Wake-up Sec [***] [***] [***] [***] [***] Wake Up proper Secs
  Wake-Up Secs Figure 2 - [***] Wake Up Sequence Remote Device Wake-up Sec
  Remot Device Wake Up proper Secs Wake-Up Secs Figure 3 - [***] Wake Up
  Sequence  Telematics Specification
  Document- [***] [***] [***] [***] Strictly Confidential

  

 

B-20
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 5 DVP
  & R 5.1 Component Level Testing The supplier will be responsible for the
  component level testing and will provide all Design Validation plans and
  results to Smith Electric Vehicles upon request. 5.2 Vehicle Level Testing
  Both [***] will carry out the testing work performed at vehicle level – see
  DVP & R for more details. 5.3 Server Level Testing Both [***] will carry
  out the testing work performed at sever level – see DVP & R for more
  details. 5.4 Vehicle Access Software (VAS) Both [***] will carry out the
  testing work performed at VAS level – see DVP & R for more details. 5.5
  DVP & R [***] are responsible for developing the DVP&R as per RASIC 

  

 

B-21
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 6
  Quality 6.1 Overall Quality Targets and Measures Failure rates of supplied
  components shall not exceed more than [***]% of all supplied items by volume.
  6.2 Manufacturing Quality Planning The supplier will remain responsible for
  demonstrating its ability to deliver volume production. The body and location
  of the plant will be nominated by the supplier. A visit to this location by
  SEV Engineering staff will be required before volume production begins. 6.3
  Assured Quality Lessons Learned The supplier will present to Smith Electric
  Vehicles the “Top 10” quality issues in order to support Smith “Drive to
  Zero” quality returns initiative. 

  

 

B-22
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - 6.3.1
  RMA Process and Warranty The supplier will conform to the Smith Electric
  Vehicle RMA process as defined below. All costs associated with shipping of
  rejected units will be funded by the supplier. CUSTOMER COMPLAINT LOGGED
  RETURN AGREED RETURN MATERIAL AUTHORISATION ENTRY INPUT DETAILS REASON, QT Y
  , M/C SERIAL NUMBER GENERATE RMA NUMBER CONTACT CUSTOMER WITH RMA NUMBER AND
  SHIP TO DETAILS RECEIVE PART / MACHINE IN TO INSPECTION WH RMA DISPOSITION
  ENTRY CRED IT CUSTOMER RETURN TO INVENTORY HOLD U N T IL READY TO AC T REWORK
  AND RETURN RECEIVE INTO INVENTORY RAISE NONCONFORMANCE / PUT TO INSPECTION
  DMR PROCESSING WHEN REQUIRED RECEIVE INTO INVENTORY RAISE WO / JOB FOR T EST
  / PDI BEFORE SHIPMENT COMPLETE OPERATIONS RECEIVE INTO FINISHED GOODS RECEIVE
  INTO INVENTORY RAISE WO / JOB FOR REWORK & INSPECT ION OPERATIONS
  COMPLETE OPERATIONS RECEIVE INTO F IN ISHED GOODS CREATE ZERO VALUE SALES
  ORDER SHIP M ACHINE WITH STD PROCESS TWO OPTIONS AGREE CURRENT VALUE OF
  MACHINE CREDIT CUSTOMER AGAINST INVOICE SHIP NEW MACHINE FROM INVENTORY
  AGAINST NEW ORDER SHIP NEW MACHINE F ROM INVENTORY AGAINST NEW ORDER AGREE D
  ISCOUNTED RATE FOR NEW M/CS [***] [***] [***] [***] [***] [***] [***] [***]
  [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***]
  [***] [***] [***] [***] [***] [***] [***] [***] [***] 

  

 

B-23
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - All
  supplier components will be warranted for a period of 3 years from date of
  fitment. 6.4 Supplier Quality Planning The supplier will demonstrate 6.5
  First Off First Off Production Level (A Sample) - 3 RD’s will be subject to
  continuous dedicated assessment and sign off. 6.6 Conformity of Production
  All HW and SW iterations will undergo a period of trial and DVP&R before
  being issued to Smith Electric Vehicles Production Department for volume
  production. 6.7 Project Issues Management This will be led by Smith Electric
  Vehicles via regular Project Technical and Commercial review. 

  

 

B-24
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document -
  Appendix A – [***] Message Lists 1. [***] Message Information There are at
  least [***] ID’s that need to be read. These are tabulated below, the
  detailed message structure is contained in the document Smith Electric
  Vehicles Newton Redundant Battery System (17th Feb 2009). Note that this
  document details the structure for ALL employed [***]. The RD should be
  configured for the number of employed [***] as required. SEV [***] ID Number
  [***] ID Message Name Rate 1 [***] [***] [***]ms Information: This message
  set is sent from the [***] micro to each [***] in the system. The following
  can be learned from this message: • [***] 

  

 

B-25
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - SEV
  [***] ID Number [***] ID Message Name Rate 2 [***] [***] [***]ms Information:
  This message set is sent from each [***] in the system to the [***] micro.
  The messages are a GENERAL OVERVIEW AT POD LEVEL. The following can be
  learned from this message: • [***] • [***] • [***] • [***] • [***] • [***] •
  [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***]
  • [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***] •
  [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***] • [***]
  • [***] 

  

 

B-26
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - SEV
  [***] ID Number [***] ID Message Name Rate 3 [***] [***] [***]ms Information:
  This message set is sent from each [***] in the system to the [***] micro.
  The messages are a GENERAL OVERVIEW AT POD LEVEL. The following can be
  learned from this message: • [***] • [***] • [***] • [***] • [***] • [***] •
  [***] • [***] • [***] • [***] • [***] Tanfield [***] ID Number [***] ID
  Message Name Rate 4 [***] [***] [***]ms Information: This message set is sent
  from each [***] in the system to the [***] micro. The messages are used TO
  SET CRITICAL THRESHOLDS IN THE CHARGER. The following can be learned from
  this message: • [***] • [***] • [***] • [***] • [***] SEV [***] ID Number
  [***] ID Message Name Rate 5 [***] [***] [***]ms Information: This message
  set is sent from each [***] in the system to the [***] micro. The messages
  are used to CONTROL CHARGING. The following can be learned from this message:
  • [***] • [***] 

  

 

B-27
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document - SEV
  [***] ID Number [***] ID Message Name Rate 6 [***] [***] [***]ms Information:
  This message set is sent from each [***] in the system to its charger. The
  messages are used to CONTROL CHARGING. The following can be learned from this
  message: • [***] • [***] • [***] • [***] • [***] • [***] Tanfield [***] ID
  Number [***] ID Message Name Rate 7 [***] [***] [***]ms Information: This
  message set is sent from each [***] in the system to its charger. The
  messages are used to CONTROL CHARGING. The following can be learned from this
  message: • [***] • [***] SEV [***] ID Number [***] ID Message Name Rate 8
  [***] [***] ? 9 [***] [***] 10 [***] [***] 11 [***] [***] 12 [***] [***] 13
  [***] [***] 14 [***] [***] 15 [***] [***] 

  

 

B-28
 

	
  

  	
  Telematics
  Specification Strictly Confidential Telematics Specification Document -
  Tanfield [***] ID Number [***] ID Message Name Rate 16 [***] [***] 17 [***]
  [***] 18 [***] [***] Information: This message set is sent from each [***] in
  the system to deliver DISCRETE INFORMATION AT MODULE LEVEL for each and every
  module in all pods. Note!! It is also a requirement that ALL of the messages
  i.e system information, alarms, and warnings etc that are set to the [***]
  Display from the MBS on [***] 1 are monitored by the RD. 

  

 

B-29
 

	
  

  	
  ***Confidential
  treatment requested pursuant to a request for confidential treatment filed
  with the Securities and Exchange Commission.  Omitted portions have been
  filed separately with the Commission. Appendix B – Reference Documents 1)
  Telemetry System Attribute Specification_V02 Description: Breakdown of
  required parameters, signal source and acquisition rate, Level A or Level B
  iteration 2) MT3125B RESERVED CANSpec 09.10.31 Description: EDN Charger CAN
  Spec 3) NLG5_CAN_Spec_201 Description: BRUSA Charger CAN Spec Mes-Dea charger
  spec to follow Appendix C – Definitions Drive Event – From driver “Key on” to
  “Key off” Charge Cycle – From battery “current draw” to battery “zero current
  draw” – regardless of whether charging lead is connected or not Discharge
  Cycle – A series of drive events that occur before the beginning of the next
  Charge Cycle 

  

 

B-30

 

 

 

***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.  Omitted portions have been filed separately with the Commission.

 

Attachment C

 

TAD Electronics

TAD-290 Smiths V7 BOM Iss2

 

 

C-1Exhibit 10.27

 

SMITH ELECTRIC VEHICLES CORP.

 

SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

This SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Agreement”) is made as of January 30, 2012, by and among Smith Electric Vehicles Corp., a Delaware corporation (the “Company”), the holders of the Company’s Series D Convertible Preferred Stock, par value $0.001 per share (the “Series D Preferred Stock”), listed on Exhibit A hereto (the “Series D Holders”), the holders of the Company’s Series C Convertible Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”), listed on the signature pages hereto (the “Series C Holders”), the holders of the Company’s Series B Convertible Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”), listed on the signature pages hereto (the “Series B Holders”), and the holders of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), listed on signature pages hereto (the “Common Holders”).

 

RECITALS:

 

WHEREAS, the Company, the Series C Holders, the Series B Holders and the Common Holders entered into an Amended and Restated Investor Rights Agreement, dated as of November 3, 2011 (the “Original Agreement”);

 

WHEREAS, the Company and the Series D Holders have entered into separate subscription agreements (the “Series D Subscription Agreements”), which provide for, among other things, the purchase by the Series D Holders of the Series D Preferred Stock;

 

WHEREAS, the Series D Subscription Agreements contemplate that the Series D Holders would enter into this Agreement; and

 

WHEREAS, the parties hereto desire to amend and restate the Original Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.                                      Definitions.

 

1.1                               Certain Definitions.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

(a)                                 “Affiliate” means any Person directly or indirectly controlling, controlled by or under common control with another Person.

 

(b)                                 “Affiliated Fund” shall have the meaning set forth in Section 2.8(a)(iii) hereof.

 

(c)                                  “Agreement” shall have the meaning set forth in the preamble hereto.

 

 

(d)                                 “Certificate of Incorporation” means the Fourth Amended and Restated Certificate of Incorporation of the Company, as amended or amended and restated from time to time after the date hereof.

 

(e)                                  “Code” means the Internal Revenue Code of 1986, as amended.

 

(f)                                   “Commission” shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act (as defined herein).

 

(g)                                  “Common Holders” shall have the meaning set forth in the preamble hereto.

 

(h)                                 “Common Stock” shall have the meaning set forth in the preamble hereto.

 

(i)                                     “Control” (including its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly through one or more intermediaries, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise).

 

(j)                                    “Company” shall have the meaning set forth in the first paragraph hereto.

 

(k)                                 “Conversion” shall have the meaning set forth in the recitals hereto.

 

(l)                                     “Co-Sale Agreement” shall mean the Second Amended and Restated Right of First Refusal and Co-Sale Agreement to which the Company is a party.

 

(m)                             “Deemed Liquidation Event” shall have the meaning set forth in the Certificate of Incorporation.

 

(n)                                 “Election Period” shall have the meaning set forth in Section 4.1(c) hereof.

 

(o)                                 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

 

(p)                                 “Holder” shall mean (i) any Series B Holder, Series C Holder or Series D Holder that holds Registrable Securities (as defined herein) and (ii) any holder of Registrable Securities to whom the registration rights conferred by this Agreement shall have been duly and validly transferred in accordance with Section 2.12 of this Agreement.

 

(q)                                 “Indemnified Party” shall have the meaning set forth in Section 2.6(c) hereof.

 

(r)                                    “Indemnifying Party” shall have the meaning set forth in Section 2.6(c) hereof.

 

2

 

(s)                                   “Initial Public Offering” shall mean the closing of the Company’s first firm commitment underwritten public offering of Common Stock registered under the Securities Act.

 

(t)                                    “Initiating Holders” shall mean any Holder or Holders who in the aggregate hold not less than thirty percent (30%) of the outstanding Registrable Securities; provided, that, for the purpose of Section 2.3 of this Agreement, the term “Initiating Holders” shall mean any Holder or Holders who in the aggregate hold not less than ten percent (10%) of the outstanding Registrable Securities.

 

(u)                                 “Major Holder” shall mean a Series B Holder, a Series C Holder or a Series D Holder that holds, together with its Affiliates, at least 1,000,000 shares (as adjusted for stock splits, stock dividends, reverse stock splits and the like) of Common Stock (including Common Stock issuable upon conversion of the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock).

 

(v)                                 “New Securities” shall have the meaning set forth in Section 4.1(a) hereof.

 

(w)                               “Notes” shall have the meaning set forth in the recitals hereto.

 

(x)                                 “Offering Documents” shall have the meaning set forth in Section 2.6(a).

 

(y)                                 “Original Agreement” shall have the meaning set forth in the recitals hereto.

 

(z)                                  “Person” shall means a natural person, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or other entity.

 

(aa)                          “Registrable Securities” shall mean: (i) shares of Common Stock owned as of the date hereof by the Common Holders; (ii) shares of Series B Preferred Conversion Stock; (iii) shares of Series C Preferred Conversion Stock; (iv) shares of Series D Preferred Conversion Stock; (v) shares of Common Stock hereafter acquired or issued pursuant to the exercise or conversion of any securities hereafter acquired by the Series B Holders, Series C Holders or Series D Holders pursuant to the right of first refusal set forth in Section 2.4 of the Co-Sale Agreement and/or pursuant to the right of first refusal set forth in Section 4 of this Agreement; and (vi) any Common Stock issued as a dividend or other distribution with respect to or in exchange for or in replacement of the shares referenced in the foregoing clauses (i), (ii), (iii), (iv) or (v) above; provided, however, that Registrable Securities shall not include any shares of Common Stock described above which have previously been registered (as defined below) or which have been sold to the public either pursuant to a registration statement under the Securities Act or Rule 144.

 

(bb)                          The terms “register,” “registered” and “registration” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of the effectiveness of such registration statement.

 

3

 

(cc)                            “Registration Expenses” shall mean all expenses incurred by the Company in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification, filing fees, printing expenses, accounting fees, escrow fees, fees and disbursements of counsel for the Company, fees and disbursements of one special counsel for the Holders (selected by a majority-in-interest of the Holders), provided such fees and disbursements of counsel are limited in amount to $50,000, blue sky fees and expenses, and expenses of any regular or special audits incident to or required by any such registration, but shall not include Selling Expenses, fees and disbursements of other counsel for the Holders and the compensation of regular employees of the Company, which employee compensation shall be paid in any event by the Company.

 

(dd)                          “Restricted Securities” shall mean any Registrable Securities required to bear the first legend set forth in Section 2.8(b) hereof.

 

(ee)                            “Rights Holder” shall have the meaning set forth in Section 4.1.

 

(ff)                              “Rule 144” shall mean Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

 

(gg)                            “Rule 145” shall mean Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

 

(hh)                          “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

 

(ii)                                  “Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of one special counsel to the Holders included in Registration Expenses).

 

(jj)                                “Series B Holders” shall have the meaning set forth in the preamble hereto.

 

(kk)                          “Series B Preferred Conversion Stock” shall mean the shares of Common Stock issuable upon conversion of the Series B Preferred Stock.

 

(ll)                                  “Series B Preferred Stock” shall have the meaning set forth in the preamble hereto.

 

(mm)                  “Series C Holders” shall have the meaning set forth in the preamble hereto.

 

(nn)                          “Series C Preferred Conversion Stock” shall mean the shares of Common Stock issuable upon conversion of the Series C Preferred Stock.

 

4

 

(oo)                          “Series C Preferred Stock” shall have the meaning set forth in the preamble hereto.

 

(pp)                          “Series D Holders” shall have the meaning set forth in the preamble hereto.

 

(qq)                          “Series D Preferred Conversion Stock” shall mean the shares of Common Stock issuable upon conversion of the Series D Preferred Stock.

 

(rr)                                “Series D Preferred Stock” shall have the meaning set forth in the preamble hereto.

 

(ss)                              “Subject Securities” shall mean all Registrable Securities held by the Series B Holders, Series C Holders and Series D Holders and the shares of Common Stock held at any time by the Common Holders; provided, however, that Subject Securities shall not include any shares of Common Stock described above which have been previously registered or which have been sold to the public either pursuant to a registration statement under the Securities Act or Rule 144.

 

(tt)                                “Tanfield” means Tanfield Group PLC.

 

2.                                      Registration Rights: Restrictions on Transfer.

 

2.1                               Demand Registration.

 

(a)                                 Request for Registration.  Subject to the conditions set forth in this Section 2.1, if the Company shall receive from Initiating Holders a written request signed by such Initiating Holders that the Company effect any registration of the Registrable Securities of the Company with an aggregate offering price to the public (net of underwriting discounts and commissions) of not less than Five Million Dollars ($5,000,000) (such request shall state the number of shares of Registrable Securities requested to be disposed of by such Initiating Holders), the Company will promptly give written notice of the proposed registration to all other Holders whereupon such other Holders shall give written notice to the Company within 20 days after the date of the Company’s notice (the “Notice Period”) if they propose to dispose of any shares of Registrable Securities pursuant to such registration, stating the number of shares of Registrable Securities to be disposed of by such Holder or Holders and whether such Holder or Holders desire for such disposition to be underwritten.

 

(b)                                 The Common Holders may register securities for sale for their own account in any registration requested pursuant to this Section 2.1, subject to limitations on the number of shares which may be imposed by the underwriter as set forth in Section 2.1(f) below.  At the time the Company shall give the notice to Holders required by Section 2.1(a), it shall also give the same notice to the Common Holders whereupon each Common Holder shall give written notice to the Company within the Notice Period if it proposes to dispose of any shares of Common Stock held by it pursuant to such registration, stating the number of shares of Common Stock to be disposed of by such Common Holder and whether such Common Holder desires for such disposition to be underwritten.

 

5

 

(c)                                  The Company shall, as soon as practicable, file and use its commercially reasonable efforts to effect such registration (including, without limitation, filing post-effective amendments, appropriate qualifications under applicable blue sky or other state securities laws, and appropriate compliance with the Securities Act) and to permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Subject Securities of any Holder or Holders or the Common Holders joining in such request as are specified in a written request received by the Company within the Notice Period; provided that unless a registration pursuant to this Section 2.1 is the Company’s Initial Public Offering, the Company also shall use its reasonable best efforts to file the registration statement within ninety (90) days of the receipt of the request from the Initiating Holders.

 

(d)                                 Limitations on Requested Registration.  The Company shall not be obligated to effect, or to take any action to effect, any such registration pursuant to this Section 2.1:

 

(i)                                     prior to the earlier of (A) February 10, 2016 or (B) six (6) months following the effective date of the Company’s Initial Public Offering;

 

(ii)                                  in any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

 

(iii)                               after the Company has initiated two (2) such registrations pursuant to this Section 2.1 (counting for these purposes only (x) registrations where at least 75% of the Registrable Securities requested to be registered are in fact registered and which have been declared or ordered effective and pursuant to which securities have been sold, and (y) registrations that closed, or were withdrawn at the request of the Holders (other than as a result of a material adverse change to the Company)); or

 

(iv)                              during the period starting with the date sixty (60) days prior to the Company’s good faith estimate of the date of filing of, and ending on a date ninety (90) days (or in the case of the Company’s Initial Public Offering, one hundred eighty (180) days) after the effective date of, a Company-initiated registration (other than a registration relating solely to employee benefit plans); provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective.

 

(e)                                  Deferral.  If (i) in the good faith judgment of the Board of Directors of the Company, the filing of a registration statement covering the Registrable Securities would be materially detrimental to the Company and the Board of Directors of the Company concludes, as a result, that it is in the best interests of the Company to defer the filing of such registration statement at such time, and (ii) the Company shall furnish to such Holders a certificate signed by the President of the Company stating that, in the good faith judgment of the Board of Directors of the Company, it would be materially detrimental to the Company for such registration statement to be filed in the near future and that it is, therefore, in the best interests of the Company to defer the filing of such registration statement, then (in addition to the limitations set

 

6

 

forth in Section 2.1(d)(iv) above) the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders; provided  that the Company shall not defer its obligation in this manner more than twice in any twelve-month period.

 

(f)                                   Underwriting.  If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 2.1 and the Company shall include such information in the written notices referred to in Sections 2.1(a) and 2.1(b).  In such event, the right of any Holder or the Common Holders to include all or any portion of their Subject Securities in a registration pursuant to this Section 2.1 shall be conditioned upon such Holder’s or such Common Holder’s participation in such underwriting and the inclusion of such Holder’s or such Common Holder’s Subject Securities to the extent provided herein.  If the Company shall request inclusion in any registration pursuant to Section 2.1 of securities being sold for its own account, or if other persons shall request inclusion in any registration pursuant to Section 2.1, the Initiating Holders shall, on behalf of all Holders and the Common Holders, offer to include such securities in the underwriting and such offer shall be conditioned upon the participation of the Company or such other persons in such underwriting and the inclusion of the Company’s and such other person’s securities of the Company and their acceptance of the further applicable provisions of this Section 2 (including Section 2.10).  The Company (together with all Holders and the Common Holders proposing to distribute their securities through such underwriting) shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting by the Company, which managing underwriter(s) shall be reasonably acceptable to Initiating Holders holding at least a majority of the Registrable Securities held by such Initiating Holders.

 

Notwithstanding any other provision of this Section 2.1, if the managing underwriter(s) advise the Company in writing that (i) marketing factors require a limitation on the number of shares to be underwritten, or (ii) the number of shares proposed to be included in the registration would reduce the offering price per share, then the number of shares to be included in the registration and underwriting shall be allocated first among all Holders who indicated to the Company their decision to distribute any of their Registrable Securities through such underwriting, in proportion, as nearly as practicable, to the respective numbers of shares of Registrable Securities owned by such Holders at the time of filing the registration statement, then, if all such Registrable Securities have been included in the underwriting, to the Common Holders who have indicated to the Company their decision to distribute any of their Subject Securities (not otherwise constituting Registrable Securities) through such underwriting, in proportion, as nearly as practicable, to the number of shares of Subject Securities owned by the Common Holders at the time of filing the registration statement, and the remainder, if any, to the Company.  No stock excluded from the underwriting by reason of managing underwriter(s)’ marketing limitation shall be included in such registration.  In no event shall Registrable Securities be excluded from such registration unless all other stockholders’ securities and securities for the account of the Company have been first excluded.

 

If a person who has requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall be excluded therefrom by written notice from the Company, the managing underwriter(s) or the Initiating Holders.  The securities

 

7

 

so excluded shall also be withdrawn from registration.  Any Subject Securities or other Securities excluded or withdrawn from such underwriting shall also be withdrawn from such registration.  If shares are so withdrawn from the registration and if the number of shares to be included in such registration was previously reduced as a result of marketing factors pursuant to this Section 2.1(f), then the Company shall then offer to all Holders, and thereafter to the Common Holders who have retained rights to include securities in the registration, the right to include additional Subject Securities in the registration in an aggregate amount equal to the number of shares so withdrawn, with such shares to be allocated first among such Holders requesting additional inclusion, as set forth above, and thereafter to the Common Holders, as set forth above.

 

2.2                               Piggyback Registration.

 

(a)                                 Piggyback Registration.  If the Company shall determine to register any of its securities either for its own account or the account of a security holder or holders, other than a registration pursuant to Section 2.1 or 2.3, a registration relating solely to employee benefit plans, a registration relating to the offer and sale of debt securities, a registration relating to a corporate reorganization or other Rule 145 transaction, a registration on any registration form that does not permit secondary sales or a registration relating to the Company’s Initial Public Offering, the Company will:

 

(i)                                     promptly give written notice of the proposed registration to all Holders and the Common Holders; and

 

(ii)                                  use its commercially reasonable efforts to include in such registration (and any related qualification under blue sky laws or other compliance), except as set forth in Section 2.2(b) below, and in any underwriting involved therein, all of such Subject Securities as are specified in a written request or requests made by any Holder or Holders or the Common Holders received by the Company within twenty (20) days after the date of such written notice from the Company.  Such written request may specify all or a part of a Holder’s or Common Holder’s Subject Securities.

 

(b)                                 Underwriting.  If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holders and the Common Holders as a part of the written notice given pursuant to Section 2.2(a)(i).  In such event, the right of any Holder or the Common Holders to registration pursuant to this Section 2.2 shall be conditioned upon such Holder’s or the Common Holder’s participation in such underwriting and the inclusion of such Holder’s or the Common Holder’s Subject Securities in the underwriting to the extent provided herein.  All Holders and the Common Holders proposing to distribute their securities through such underwriting (together with the Company and the other holders of securities of the Company with registration rights to participate therein distributing their securities through such underwriting) shall enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected by the Company.

 

Notwithstanding any other provision of this Section 2.2, if the managing underwriter(s) advise the Company in writing that marketing factors require a limitation on the number of shares to be underwritten or the number of shares proposed to be included in the registration

 

8

 

would reduce the offering price per share, the managing underwriter(s) may (subject to the limitations set forth below) limit the number of Subject Securities to be included in the registration and underwriting.  In such event, the number of shares to be included in the registration and underwriting shall be allocated first to the Company (for up to the full number of shares it desires to sell in such registration and underwriting), second to all Holders who indicated to the Company their decision to distribute any of their Registrable Securities through such underwriting, in proportion, as nearly as practicable, to the respective numbers of shares of Registrable Securities owned by such Holders at the time of filing the registration statement (or in such other proportions as shall mutually be agreed to by all such selling Holders), and third to the Common Holders who have indicated to the Company their decision to distribute any of their Subject Securities (not otherwise constituting Registrable Securities) through such underwriting, in proportion, as nearly as practicable, to the number of shares of Subject Securities owned by the Common Holders at the time of filing the registration statement (or in such other proportions as shall mutually be agreed to by all such selling Common Holders).  In no event shall any Registrable Securities be excluded from such registration and underwriting unless all other stockholders’ securities have been first excluded.  Notwithstanding the foregoing, in no event shall the amount of Securities of the selling Holders included in the registration and underwriting be reduced below thirty percent (30%) of the total amount of securities included in such registration and underwriting.

 

If a person who has requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall also be excluded therefrom by written notice from the Company or the managing underwriter(s).  The securities so excluded shall also be withdrawn from such registration.  Any Subject Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from such registration.

 

(c)                                  Right to Terminate Registration.  The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 prior to the effectiveness of such registration whether or not any Holder or the Common Holders have elected to include securities in such registration.

 

2.3                               Registration on Form S-3.

 

(a)                                 Request for Form S-3 Registration.  If the Company is then qualified for the use of Form S-3, in addition to the rights contained in the foregoing provisions of this Section 2 and subject to the conditions set forth in this Section 2.3, and shall receive from Initiating Holders a written request signed by such Initiating Holders that the Company effect a registration on Form S-3 or any similar short form registration statement with respect to all or part of the Registrable Securities (such request shall state the number of shares of Registrable Securities requested to be disposed of and whether such Holder or Holders desire for such disposition to be underwritten), the Company will take all such actions with respect to such Registrable Securities as required by Section 2.1(a), (b) and (c); provided that in the case of a registration pursuant to this Section 2.3, the Company also shall use its reasonable best efforts to file the registration statement within ninety (90) days of the receipt of the request from the Initiating Holders.

 

(b)                                 Limitations on Form S-3 Registration.  The Company shall not be obligated to effect, or take any action to effect, any such registration pursuant to this Section 2.3:

 

9

 

(i)                                     in the circumstances described in either Sections 2.1(d)(ii) or 2.1(d)(iv);

 

(ii)                                  if the Initiating Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) on Form S-3 at an aggregate price to the public (net of any underwriters’ discounts and commissions) of less than Three Million Dollars ($3,000,000); or

 

(iii)                               if, in the prior six-month period, the Company has effected one (1) registration pursuant to this Section 2.3 in such period.

 

(c)                                  Deferral.  The provisions of Section 2.1(e) shall apply to any registration pursuant to this Section 2.3.

 

(d)                                 Underwriting.  If the Initiating Holders requesting registration under this Section 2.3 intend to distribute the Registrable Securities covered by their request by means of an underwriting, the provisions of Sections 2.1(f) shall apply to such registration.  Notwithstanding anything contained herein to the contrary, registrations effected pursuant to this Section 2.3 shall not be counted as requests for registration or registrations effected pursuant to Section 2.1.

 

2.4                               Expenses of Registration.  All Registration Expenses incurred in connection with registrations pursuant to Sections 2.1, 2.2 and 2.3 hereof shall be borne by the Company; provided  that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Sections 2.1 and 2.3 if the registration request is subsequently withdrawn at the request of the holders of a majority of the Subject Securities to be registered (in which case all participating Holders and Common Holders shall bear such expenses pro rata among each other based on the number of Subject Securities requested to be so registered), unless the holders of a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 2.1 (provided that such option shall not be available if the Company already has effected two demand registrations pursuant to Section 2.1); and provided, further, that if at the time of such withdrawal, the Holders have learned of a material adverse change in the condition, business or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness following disclosure by the Company of, or their learning of, such material adverse change, then the Holders and Common Holders shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 2.1 or 2.3, as the case may be.  All Selling Expenses shall be borne pro rata by the selling Holders and Common Holders based on the number of Subject Securities requested to be so registered.

 

2.5                               Registration Procedures.  In the case of each registration effected by the Company pursuant to Section 2, the Company will keep each seller of Subject Securities in such registration advised in writing as to the initiation of each registration and as to the completion thereof.  At its expense, the Company will use its commercially reasonable efforts to:

 

(a)                                 keep such registration effective for a period ending on the earlier of the date which is nine (9) months from the effective date of the registration statement or such time as

 

10

 

the sellers of Subject Securities in such registration have completed the distribution described in the registration statement relating thereto;

 

(b)                                 prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for the period set forth in subsection (a) above;

 

(c)                                  furnish such number of prospectuses, including any preliminary prospectuses, and other documents incident thereto, including any amendment of or supplement to the prospectus, as a seller of Subject Securities in such registration from time to time may reasonably request;

 

(d)                                 use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such jurisdictions;

 

(e)                                  notify each seller of Subject Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and following such notification promptly prepare and furnish to such sellers a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

 

(f)                                   provide a transfer agent and registrar for all Subject Securities registered pursuant to such registration statement and a CUSIP number for all such Subject Securities, in each case not later than the effective date of such registration;

 

(g)                                  cause all such Subject Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then listed;

 

(h)                                 otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission;

 

(i)                                     in connection with any underwritten offering pursuant to a registration statement filed pursuant to Section 2.1 hereof, enter into an underwriting agreement in form reasonably necessary to effect the offer and sale of Common Stock, provided such underwriting agreement contains reasonable and customary provisions; provided further that each Holder and Common Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement; and

 

11

 

(j)                                    use its commercially reasonable efforts to furnish, at the request of any Holder or the Common Holders requesting registration of Subject Securities pursuant to this Section 2, on the date that such Subject Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 2, if such securities are being sold through underwriters, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, and (ii) a letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters.

 

2.6                               Indemnification.

 

(a)                                 To the extent permitted by law, the Company will indemnify and hold harmless each Holder, each Common Holder and each of their respective officers, directors and partners, and each person controlling such Holder or Common Holder within the meaning of Section 15 of the Securities Act, with respect to which a registration has been effected pursuant to this Section 2, and each underwriter, if any, and each person who controls within the meaning of Section 15 of the Securities Act any underwriter, against all expenses, claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any free writing prospectus related thereto filed with the Commission in connection with such registration (together, the “Offering Documents”); (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (iii) any violation (or alleged violation) by the Company of the Securities Act, the Exchange Act, any state securities laws or any rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any offering covered by such registration, and the Company will reimburse each such Holder, Common Holder and each of their respective officers, directors and partners, and each person controlling such Holder or Common Holder, each such underwriter, and each person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, or action as they are incurred; provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability, or action arises out of or is based on any untrue statement or omission based upon written information furnished to the Company by such Holder, Common Holder or any of their respective officers, directors and partners, and any person controlling such Holder or Common Holder, as the case may be, such underwriter or any person who controls any such underwriter, and stated to be specifically for use in any Offering Document; and provided, further, that the indemnity agreement contained in this Section 2.6(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld).

 

(b)                                 To the extent permitted by law, each Holder and each Common Holder will, if Subject Securities held by such Holder or Common Holder, as the case may be, are included in the securities as to which such registration is being effected, indemnify and hold

 

12

 

harmless the Company, each of its directors, officers and partners, and each underwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, each other such Holder or Common Holder, and each of their respective officers, directors and partners, and each person controlling such Holder or Common Holder, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any Offering Document, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such Holders, Common Holders, directors, officers, partners, persons, underwriters, or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability, or action as they are incurred, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Offering Document in reliance upon and in conformity with written information furnished to the Company by such Holder or Common Holder, as the case may be, and stated to be specifically for use therein; provided that the obligations of such Holder or Common Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages, liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Holder or Common Holder, as the case may be (which consent shall not be unreasonably withheld); and provided, further, that in no event shall any indemnity under this Section 2.6(b) exceed the net proceeds from the offering received by such Holder or Common Holder, as the case may be.

 

(c)                                  Each party entitled to indemnification under this Section 2.6 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense; provided, further, that an Indemnified Party (together with all other Indemnified Parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the Indemnifying Party, if representation of such Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential differing interests between such Indemnified Party and any other party represented by such counsel in such proceeding; and provided, further,  that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 2.6, to the extent the Indemnifying Party is not prejudiced thereby.  No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation.  Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with defense of such claim and litigation resulting therefrom.

 

13

 

(d)                                 If the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense, as well as any other relevant equitable considerations; provided that no contribution by any Holder or Common Holder, when combined with any amounts paid by such Holder or Common Holder pursuant to Section 2.6(b), shall exceed the net proceeds from the offering received by such Holder or Common Holder, as the case may be. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

 

(e)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in such underwriting agreement shall control.

 

2.7                               Information by Holder and the Common Holders.  Each Holder of Registrable Securities and Common Holder owning Subject Securities shall furnish to the Company such information regarding such Holder or such Common Holder, as the case may be, and the distribution proposed by such Holder or such Common Holder as the Company may reasonably request in writing and as shall be reasonably required in connection with any registration, qualification, or compliance referred to in this Section 2.

 

2.8                               Securities Laws Restrictions on Transfer.  (a) Each Holder and Common Holder, in addition to any other restrictions to which he, she or it may be subject (including, without limitation, under the Co-Sale Agreement), agrees not to make any sale, assignment, transfer, pledge or other disposition of all or any portion of the equity securities of the Company owned by it, or any beneficial interest therein, unless and until (x) the transferee thereof has agreed in writing for the benefit of the Company to take and hold such equity securities subject to, and to be bound by, the terms and conditions set forth in this Agreement, including, without limitation, this Section 2.8 and Section 2.10, and (y):

 

(i)                                     There is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or

 

(ii)                                  Such Holder or such Common Holder shall have given prior written notice to the Company of such Holder’s or such Common Holder’s, as the case may be, intention to make such disposition and shall have furnished the Company with a detailed description of the manner and circumstances of the proposed disposition, and, if requested by the Company, such Holder or such Common Holder shall have furnished the Company, at such

 

14

 

Holder’s or such Common Holder’s, as the case may be, expense, with (A) an opinion of counsel, reasonably satisfactory to the Company, to the effect that such disposition will not require registration of such equity securities under the Securities Act or (B) a “no action” letter from the Commission to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the Commission that action be taken with respect thereto, whereupon the holder of such equity securities shall be entitled to transfer such equity securities in accordance with the terms of the notice delivered by the Holder or the Common Holder to the Company.  It is agreed that the Company will not require opinions of counsel or “no action” letters for transactions made pursuant to Rule 144, except in unusual circumstances.

 

(iii)                               Notwithstanding the provisions of subsections (a)(i) and (a)(ii) above, no such registration statement or opinion of counsel or “no action” letter shall be necessary for: (A) a transfer by a Holder to any of its Affiliates (including an Affiliated fund managed by the same manager or managing member or general partner or management company or by an entity controlling, controlled by, or under common control with such manager or managing member or general partner or management company, each an “Affiliated Fund”); (B) a transfer by a Holder that is a partnership, limited liability company or corporation to a subsidiary, parent, partner, limited partner, retired partner, member, retired member or stockholder of a Holder; (C) the transfer by a Holder or a Common Holder by gift, will or intestate succession of such Holder or Common Holder to his or her spouse or to the siblings, lineal descendants or ancestors of such Holder or Common Holder or his or her spouse; or (D) the transfer by a Holder or Common Holder pursuant to Section 2.5, Section 3 or Section 4.1 of the Co-Sale Agreement, if in each transfer under clauses (A), (B), (C) or (D) the prospective transferee agrees in all such instances in writing to be subject to the terms hereof to the same extent as if he or she were an original party hereunder.

 

(b)                                 Each certificate representing equity securities of the Company shall (unless otherwise permitted by the provisions of this Agreement) be stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applicable state securities laws):

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

15

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO (1) RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD OF UP TO 180 DAYS IN THE EVENT OF A PUBLIC OFFERING, AS SET FORTH IN AN INVESTOR RIGHTS AGREEMENT, AND (2) VOTING RESTRICTIONS AS SET FORTH IN A VOTING AGREEMENT AMONG THE COMPANY AND THE ORIGINAL HOLDERS OF THESE SHARES, COPIES OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.

 

The Holders and the Common Holders consent to the Company making a notation on its records and giving instructions to any transfer agent of the equity securities in order to implement the restrictions on transfer established in this Section 2.8.

 

(c)                                  The first legend referring to federal and state securities laws identified in Section 2.8(b) hereof stamped on a certificate evidencing the equity securities and the stock transfer instructions and record notations with respect to such equity securities shall be removed and the Company shall issue a certificate without such legend to the holder of such equity securities if (i) such securities are registered under the Securities Act; or (ii) such holder provides the Company with an opinion of counsel reasonably acceptable to the Company to the effect that a public sale or transfer of such securities may be made without registration under the Securities Act; or (iii) such holder provides the Company with reasonable assurances, which may, at the option of the Company, include an opinion of counsel reasonably satisfactory to the Company, that such securities can be sold pursuant to Section (b) of Rule 144 under the Securities Act.

 

2.9                               Rule 144 Reporting.  With a view to making available the benefits of certain rules and regulations of the Commission that may permit the sale of the Subject Securities to the public without registration, the Company agrees to use its commercially reasonable efforts to:

 

(a)                                 make and keep public information regarding the Company available as those terms are understood and defined in Rule 144 under the Securities Act, at all times from and after the effective date of the first registration under the Securities Act filed by the Company for an offering of its securities to the general public;

 

(b)                                 file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act at any time after it has become subject to such reporting requirements; and

 

(c)                                  so long as a Holder or a Common Holder owns any Restricted Securities, furnish to the Holder or such Common Holder, as the case may be, forthwith upon written request a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time from and after ninety (90) days following the effective date of the first registration statement filed by the Company for an offering of its securities to the general public), and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), a copy of the most recent annual or quarterly report of the Company,

 

16

 

and such other reports and documents so filed as a Holder or a Common Holder, as the case may be, may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder or a Common Holder to sell any such securities without registration.

 

2.10                        Market Stand-Off Agreement.  If requested by the Company and an underwriter of Common Stock (or other securities) of the Company, each Holder and Common Holder hereby agrees that such Holder or Common Holder, as the case may be, shall not sell or otherwise transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, of any Common Stock (or other securities) of the Company held by such Holder or Common Holder, as the case may be (other than those included in the registration), during the one hundred eighty (180) day period following the effective date of the Company’s Initial Public Offering. The obligations described in this Section 2.10 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future.  The Company may impose stop- transfer instructions and may stamp each such certificate with the second legend set forth in Section 2.8(b) hereof with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of such one hundred eighty (180) day period.  Each Holder and Common Holder agrees to execute a market standoff agreement with said underwriters in customary form consistent with the provisions of this Section 2.10.

 

2.11                        Delay of Registration.  No Holder or Common Holder shall have any right to take any action to restrain, enjoin, or otherwise delay any registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.

 

2.12                        Transfer or Assignment of Registration Rights.  The rights to cause the Company to register securities granted to a Holder or a Common Holder by the Company under this Section 2 may be transferred or assigned by a Holder or a Common Holder only to: (a) a transferee or assignee of not less than 250,000 shares of Registrable Securities (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like); (b) an Affiliate of a Holder or a Common Holder (including an Affiliated Fund); (c) if a Holder or a Common Holder is a partnership, limited liability company or corporation, then to a subsidiary, parent, partner, limited partner, retired partner, member, retired member or stockholder of such Holder or Common Holder; or (d) a Holder’s or a Common Holder’s ancestors, descendants, siblings or spouse, or a trust or family limited partnership for the benefit of such Persons or the Holder or the Common Holder, either during his or her lifetime or on death by will or intestacy; provided that (i) any such transfer or assignment of Registrable Securities is effected in accordance with the terms of Section 2.8 hereof, and applicable securities laws; (ii) the Company is given written notice prior to said transfer or assignment, stating the name and address of the transferee or assignee and identifying the Securities with respect to which such registration rights are intended to be transferred or assigned; (iii) the transferee or assignee of such rights assumes in writing the obligations of such Holder or Common Holder under this Agreement, including without limitation the obligations set forth in Section 2.10; and (iv) any such transferee is not engaged in direct competition with the Company as reasonably determined by the Board of Directors of the Company.

 

17

 

2.13                        Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders holding a majority of the Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or prospective holder any registration rights the terms of which are pari passu with or senior to, equal to or more favorable than the registration rights granted to the Holders hereunder.

 

2.14                        Termination of Registration Rights.  The right of any Holder or Common Holder to request registration or inclusion in any registration pursuant to Section 2.1, 2.2 or 2.3 shall terminate on the earlier of (i) the date on which such Holder or Common Holder holds no Subject Securities; and (ii) five (5) years after the closing of the Company’s Initial Public Offering.

 

3.                                      Covenants.

 

3.1                               Basic Financial Information.  The Company shall deliver to each Major Holder the following financial information:

 

(a)                                 as soon as practicable, but in any event within 90 days after the end of each fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the Company and statement of stockholder’s equity as of the end of such year, and a statement of cash flows for such year, such year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted accounting principles (“GAAP”), setting forth in each case comparisons to the corresponding period in the preceding fiscal year, and audited and certified by an independent public accounting firm of nationally recognized standing selected by the Company;

 

(b)                                 as soon as practicable, but in any event within 30 days after the end of each of the first three quarters of each fiscal year of the Company, an unaudited profit or loss statement, a statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter prepared in accordance with GAAP consistently applied with prior practice for earlier periods (with the exception of footnotes that may be required by GAAP) and which shall fairly present the financial condition of the Company and its results of operation for the period specified, subject to year-end audit adjustment, setting forth in each case comparisons to the Company’s annual budget and to the corresponding period in the preceding fiscal year;

 

(c)                                  as soon as practicable, but in any event within 30 days prior to the commencement of each new fiscal year of the Company, an annual comprehensive operating budget forecasting the Company’s revenues, expenses, and cash positions on a month-to-month basis for the upcoming fiscal year;

 

(d)                                 promptly following the end of each quarter, an up-to-date capitalization table, certified by the Chief Financial Officer of the Company; and

 

(e)                                  (i) within thirty (30) days after filings, copies of all material reports, statements and/or documents filed by the Company with government authorities, including but not limited to, those filed with the Internal Revenue Service and the Commission; (ii) within thirty (30) days after receipt or filings, copies of pleadings of any material lawsuits filed by or

 

18

 

against the Company; and (iii) within ten (10) days after receipt, a copy of any notifications received by the Company regarding any defaults on any indebtedness for borrowed money or leases to which the Company is a party.

 

3.2                               Inspection Rights.  The Company will afford to each Major Holder and any authorized representative of such Major Holder reasonable access during normal business hours to all of the Company’s properties, books and personnel records.  Major Holders may exercise their rights under this Section 3.2 only for purposes reasonably related to their interests as a stockholder.  The rights granted pursuant to this Section 3.2 may not be assigned or otherwise conveyed by any Major Holder.

 

3.3                               Confidentiality.  Anything in this Agreement to the contrary notwithstanding, no Holder or Common Holder by reason of this Agreement shall have access to any trade secrets or classified information of the Company.  The Company shall not be required to comply with any information rights or inspection rights pursuant to this Section 3 in respect of any Holder or Common Holder whom the Board of Directors of the Company reasonably determines to be a competitor of the Company.  The Company shall not be obligated to disclose details of contracts with, or work performed for, specific customers and other business partners where to do so would violate confidentiality obligations to those parties.  Each Holder and Common Holder agrees that it will not use any information received by it pursuant to this Agreement in violation of the Securities Act or the Exchange Act or reproduce, disclose or disseminate such information to any other person (other than its employees, agents or partners having a need to know the contents of such information), except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally.

 

3.4                               Termination of Covenants.  The covenants set forth in this Section 3 shall terminate and be of no further force and effect upon (a) the closing of the Company’s Initial Public Offering or (b) the closing of an acquisition of the Company by another entity by means of any transaction or series of related transactions to which the Company is a party (including, without limitation, any stock acquisition, reorganization, merger or consolidation but excluding any sale of stock for capital raising purposes) other than a transaction or series of transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction continue to retain (either by such voting securities remaining outstanding or by such voting securities being converted into voting securities of the surviving entity), as a result of shares in the Company held by such holders prior to such transaction, more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such transaction or series of transactions; or (c) the closing of a sale, lease or other conveyance of all or substantially all or of the assets of the Company.

 

4.                                      Right of First Refusal.

 

4.1                               Right of First Refusal.  The Company hereby grants to each Series B Holder, Series C Holder, Series D Holder and Tanfield (each, a “Rights Holder”) the right of first refusal to purchase its pro rata share of New Securities (as defined in Section 4.1(a)), which the Company may, from time to time, propose to sell and issue after the date of this Agreement.

 

19

 

A Rights Holder’s pro rata share, for purposes of this right of first refusal, is equal to the ratio of (A) the number of shares of Common Stock owned by such Rights Holder on the date hereof (assuming full conversion of the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock and the exercise by such Rights Holder of all outstanding convertible securities, rights, options and warrants held by it, directly or indirectly, into Common Stock) to (B) the total number of shares of Common Stock outstanding on the date hereof (assuming full conversion of the Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock and exercise of all outstanding convertible securities, rights, options and warrants issued by the Company, directly or indirectly, into Common Stock).  For purposes of the immediately preceding sentence of this Section 4.1, a Rights Holder includes any general partner, managing member and Affiliates (including Affiliated Funds) of a Series B Holder, Series C Holder or Series D Holder, respectively.  A Series B Holder, Series C Holder or Series D Holder who chooses to exercise the right of first refusal may designate as purchasers under such right itself and/or its partners or Affiliates (including Affiliated Funds), in such proportions as it deems appropriate.

 

(a)                                 “New Securities” shall mean any capital stock (including, without limitation, Common Stock, Series B Preferred Stock, Series C Preferred Stock and/or Series D Preferred Stock) of the Company whether now authorized or not, and rights, convertible securities, options or warrants to purchase such capital stock, and securities of any type whatsoever that are, or may become, exercisable or convertible into capital stock; provided that the term “New Securities” does not include:

 

(i)                                     the Series B Preferred Conversion Stock;

 

(ii)                                  the Series C Preferred Conversion Stock;

 

(iii)                               the Series D Preferred Conversion Stock;

 

(iv)                              securities issued or issuable to employees, officers or directors of, or consultants or advisors to, the Company or any subsidiary pursuant to stock grants, option plans or similar arrangements approved by the Board of Directors of the Company;

 

(v)                                 securities issued upon the conversion or exercise of any outstanding convertible or exercisable securities as of this date of this Agreement;

 

(vi)                              securities issued or issuable as a dividend or distribution on Series B Preferred Stock, Series C Preferred Stock or Series D Preferred Stock or pursuant to any event for which adjustment is made pursuant to Subsection 4(e), (f) or (g) of Article FOURTH, Section C of the Certificate of Incorporation;

 

(vii)                           securities offered pursuant to a registered public offering under the Securities Act in connection with which all outstanding shares of Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock are converted into Common Stock;

 

(viii)                        securities issued or issuable pursuant to the bona fide acquisition of another entity by the Company by merger, purchase of substantially all of the assets or other· reorganization, which acquisition is approved by the Board of Directors of the Company;

 

20

 

(ix)                              securities issued or issuable to banks, equipment lessors or other financial institutions pursuant to a debt financing, equipment lease, bank credit arrangement or commercial leasing transaction entered into for primarily non-equity financing purposes and approved by the Board of Directors of the Company;

 

(x)                                 securities of the Company which the Board of Directors of the Company unanimously determines shall be excluded from the definition of New Securities and which are not offered to any existing stockholder of the Company;

 

(xi)                              securities issued in connection with sponsored research, connection, technology license, development, distribution, marketing or other similar agreements or strategic partnerships entered into for primarily non-equity financing purposes and approved by the Board of Directors of the Company;

 

(xii)                           securities issued to suppliers or third party service providers in collection with the provision of goods or services pursuant to transactions approved by the Board of Directors of the Company;

 

(xiii)                        securities issued with the prior written waiver of the holders of at least two-thirds of the outstanding shares of Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock (voting together as a single class on an as-converted to Common Stock basis);

 

(xiv)                       rights or securities issued pursuant to any stockholder rights plan adopted by the Board of Directors of the Company; and

 

(xv)                          securities issued or issuable upon conversion or exercise of any of the foregoing.

 

(b)                                 In the event the Company proposes to undertake an issuance of New Securities, it shall give each Rights Holder written notice of its intention, describing the type of New Securities, their price and the general terms upon which the Company proposes to issue the same.  Each Rights Holder shall have twenty (20) days after receipt of such notice to agree to purchase such Rights Holder’s pro rata share of such New Securities for the price and upon the terms specified in the notice by giving written notice to the Company and stating therein the quantity of New Securities to be purchased, provided that, if a Rights Holder elects not to purchase its pro rata share of the New Securities pursuant to this Section 4.1, the Company shall promptly notify, in writing, the Rights Holders that have notified the Company they intend to purchase their respective pro rata shares of such New Securities and offer each such Rights Holder the right to acquire its pro rata share of such unsubscribed New Securities.  Such Rights Holders shall have ten (10) days following receipt of such notice from the Company to notify the Company of their election to purchase their pro rata share of all or a portion of the unsubscribed New Securities.

 

(c)                                  In the event the Rights Holders fail to exercise fully the right of first refusal within said twenty (20) day period and, if applicable, said ten (10) day period (the “Election Period”), the Company shall have ninety (90) days thereafter to sell or enter into an agreement (pursuant to which the sale of New Securities covered thereby shall be closed, if at all, 

 

21

 

within ninety (90) days from the date of said agreement) to sell that portion of the New Securities with respect to which the Rights Holders’ right of first refusal option set forth in this Section 4.1 was not exercised, at a price and upon terms no more favorable to the purchasers thereof than specified in the Company’s notice to the Rights Holders delivered pursuant to the first sentence of Section 4.1(b).  In the event the Company has not sold such New Securities within such ninety (90) day period following the Election Period, or such ninety (90) day period following the date of said agreement, the Company shall not thereafter issue or sell any New Securities without first again offering such New Securities to the Rights Holders in the manner provided in this Section 4.1.

 

(d)                                 The right of first refusal granted under this Agreement shall expire upon, and shall not be applicable to, the Company’s Initial Public Offering.

 

5.                                      Miscellaneous.

 

5.1                               Amendment.  Except as otherwise expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Agreement and signed by the Company and the Holders and Common Holders holding a majority of the Registrable Securities (excluding any of such shares that have been sold pursuant to a registration statement or pursuant to Rule 144).  Any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon each Holder and Common Holder and each future holder of any securities of such Holder or Common Holder (to the extent such future holder becomes a party hereto pursuant to the terms hereof).  Each Holder and Common Holder acknowledges that by the operation of this paragraph, the Holders and Common Holders of a majority of the Registrable Securities (excluding any of such shares that have been sold pursuant to a registration statement or pursuant to Rule 144) will have the right and power to diminish or eliminate all rights of such Holder or Common Holder under this Agreement, but only in a manner effecting all such Holders and, in the case of Section 2, the Common Holders, equally.

 

5.2                               Notices.  All notices and other communications required or permitted hereunder shall be in writing and shalt be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand or by messenger addressed:

 

(a)                                 if to a Series B Holder, Series C Holder or Series D Holder, at the Series B Holder’s, Series C Holder’s or Series D Holder’s address, facsimile number or electronic mail address as shown in the Company’s records, as the same may be updated in accordance with the provisions hereof;

 

(b)                                 if to any Holder or Common Holder, at such address, facsimile number or electronic mail address as shown in the Company’s records, or, until any such holder so furnishes an address, facsimile number or electronic mail address to the Company, then to and at the address of the last holder of such shares for which the Company has contact information in its records; or

 

(c)                                  if to the Company, one copy should be sent to Smith Electric Vehicles Corp., 12200 N.W. Ambassador Drive, Suite 326, Kansas City, Missouri 64163, Attention: 

 

22

 

Bryan Hansel, Chief Executive Officer, or at such other address as the Company shall have furnished to the Holders, with a copy to Covington & Burling LLP, 1201 Pennsylvania Avenue, NW, Washington, DC 20004, Attention: W. Andrew Jack.

 

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered personally, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid or, if sent by facsimile, upon confirmation of facsimile transfer or, if sent by electronic mail, upon confirmation of delivery when directed to the electronic mail address set forth in the records of the Company.

 

5.3                               Governing Law.  This Agreement shall be governed in all respects by the internal laws of the State of Delaware, without regard to principles of conflicts of law that would refer any dispute under this Agreement to the substantive laws of another jurisdiction.

 

5.4                               Successors and Assigns.  Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto and shall inure to the benefit of and be enforceable by each person who shall be a holder of Registrable Securities from time to time; provided that prior to the receipt by the Company of adequate written notice of the transfer of any Registrable Securities specifying the full name and address of the transferee, the Company may deem and treat the person listed as the holder of such shares in its records as the absolute owner and holder of such shares for all purposes, including the payment of dividends or any redemption price.

 

5.5                               Entire Agreement.  This Agreement and the exhibits hereto constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and supersedes all prior written or oral agreements and understandings relating to such subject matter. No party hereto shall be liable or bound to any other party in any manner with regard to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein,

 

5.6                               Delays or Omissions.  Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, shall be cumulative and not alternative.

 

23

 

5.7                               Severability.  If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement, and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision.  The balance of this Agreement shall be enforceable in accordance with its terms.

 

5.8                               Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.  All references in this Agreement to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

5.9                               Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute such counterparts, and all of which together shall constitute one instrument.

 

5.10                        Telecopy Execution and Delivery.  A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective for all purposes, At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement as well as any facsimile, telecopy or other reproduction hereof.

 

5.11                        Further Assurances.  Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement.

 

5.12                        Affiliated Funds or Aggregation of Stock.  All shares of Common Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock held or acquired by Affiliated Funds or Affiliated Persons or Persons under common investment management or control shall be aggregated together for the purpose of determining the availability of any rights or obligations under this Agreement.  Additionally, for any Holder or Common Holder that is a partnership, corporation or limited liability company, the general partner, limited partners, retired partners, shareholders, members, retired members and Affiliates of such Holder or Common Holder, or the members or retired members of the foregoing, as applicable, or the estates, beneficiaries and family members of any such general partner, limited partners, retired partners, shareholders, members, and retired members and any trusts for the benefit of any of the foregoing Persons shall be deemed to be a single “Holder” or “Common Holder,” as the case may be, and any pro rata reductions pursuant to Section 2.1 or 2.3 with respect to such Holder or Common Holder shall be based upon the aggregate amount of Registrable Securities owned by all Persons included in such “Holder” or “Common Holder,” as the case may be, as defined in this Section 5.12.

 

[Remainder of Page Intentionally Left Blank.]

 

24

 

IN WITNESS WHEREOF, each of the undersigned holders of common stock, par value $0.001 per share, of Smith Electric Vehicle Corp. (the “Company”) has executed this signature page as of the date set forth below; and, by execution and delivery hereof, such holder hereby agrees to join in and be bound by the terms and conditions of (i) the Second Amended and Restated Voting and Drag-Along Agreement as a “Common Holder” thereunder, (ii) the Second Amended and Restated Investor Rights Agreement as a “Common Holder” thereunder and (iii) the Second Amended and Restated Right of First Refusal and Co-Sale Agreement as a “Common Holder” thereunder, each in the form delivered to the undersigned by the Company, and authorizes this signature page to be attached to the Second Amended and Restated Voting and Drag-Along Agreement, the Second Amended and Restated Investor Rights Agreement and the Second Amended and Restated Right of First Refusal and Co-Sale Agreement, or counterparts thereof.

 

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

 

	
 
    	
SMITH ELECTRIC VEHICLES CORP.,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: /s/ Bryan Hansel
    
	
 
    	
Bryan Hansel, President and
    
	
 
    	
Chief Executive Officer
    

 

25

 

IN WITNESS WHEREOF, each of the undersigned holders of common stock, par value $0.001 per share, of Smith Electric Vehicle Corp. (the “Company”) has executed this signature page as of the date set forth below; and, by execution and delivery hereof, such holder hereby agrees to join in and be bound by the terms and conditions of (i) the Second Amended and Restated Voting and Drag-Along Agreement as a “Common Holder” thereunder, (ii) the Second Amended and Restated Investor Rights Agreement as a “Common Holder” thereunder and (iii) the Second Amended and Restated Right of First Refusal and Co-Sale Agreement as a “Common Holder” thereunder, each in the form delivered to the undersigned by the Company, and authorizes this signature page to be attached to the Second Amended and Restated Voting and Drag-Along Agreement, the Second Amended and Restated Investor Rights Agreement and the Second Amended and Restated Right of First Refusal and Co-Sale Agreement, or counterparts thereof.

 

	
STORM FINANCE GROUP INCORPORATED  
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
    /s/ Roy Stanley  
    	
 
    	
Date: 
    	
    1/18/2012
    
	
 
    	
Roy Stanley
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TANFIELD GROUP PLC  
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
    /s/ Charles Brooks  
    	
 
    	
Date: 
    	
 
    
	
 
    	
Name: Charles Brooks  
    	
 
    	
 
    
	
 
    	
Title: Finance Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WYNSTON HILL CAPITAL, LLC  
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:  
    	
 
    	
 
    	
Date: 
    	
 
    
	
 
    	
Name:  
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
      /s/   Bryan Hansel  
    	
 
    	
Date: 
    	
 
    
	
Bryan Hansel
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
HANSEL (1997) FAMILY TRUST  
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
    /s/ Bryan Hansel  
    	
 
    	
Date: 
    	
 
    
	
 
    	
Name: Bryan Hansel  
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
    /s/ Robin Mackie  
    	
 
    	
Date: 
    	
 
    
	
Robin Mackie
    	
 
    	
 
    

 

26

 

IN WITNESS WHEREOF, each of the undersigned holders of Series B Convertible Preferred Stock, par value $0.001 per share, of the Company has executed this signature page as of the date set forth below; and, by execution and delivery hereof, such holder hereby agrees to join in and be bound by the terms and conditions of (i) the Second Amended and Restated Voting and Drag-Along Agreement as a “Series B Holder” thereunder, (ii) the Second Amended and Restated Investor Rights Agreement as a “Series B Holder” thereunder and (iii) the Second Amended and Restated Right of First Refusal and Co-Sale Agreement as a “Series B Holder” thereunder, each in the form delivered to the undersigned by the Company, and authorizes this signature page to be attached to the Second Amended and Restated Voting and Drag-Along Agreement, the Second Amended and Restated Investor Rights Agreement and the Second Amended and Restated Right of First Refusal and Co-Sale Agreement, or counterparts thereof.

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Reudi Baer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date: 
    	
 
    
	
Ian David Bower
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date: 
    	
 
    
	
Ellen B. Brown and Brent S. Franzel
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date: 
    	
 
    
	
Frank Buck
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
CAPTIVEVISION CAPITAL LTD  
    	
 
    	
 
    	
 
    
	
By:
    	
    /s/ R J Chatfield  
    	
 
    	
Date: 
    	
  1/24/2012
    
	
 
    	
Name: R J Chatfield  
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
CRAMER INVEST AP  
    	
 
    	
 
    	
 
    
	
By:
    	
      /s/   Peter W Christensen  
    	
 
    	
Date: 
    	
    1/14/2012
    
	
 
    	
Name: Peter W Christensen  
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Gareth Derbyshire
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
     /s/ Peter   Dunlavey
    	
 
    	
Date: 
    	
    1/12/2012
    
	
Peter Dunlavey
    	
 
    	
 
    	
 
    

 

27

 

	
JON D. ELLIS AND JULIA M. ELLIS JT  
    	
 
    	
 
    	
 
    
	
By:  
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name:  
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EPSOM ASSETS  
    	
 
    	
 
    	
 
    
	
By:
    	
     /s/ R J Chatfield  
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: R J Chatfield  
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EUROPANEL AB  
    	
 
    	
 
    	
 
    
	
By:
    	
    /s/ Jan Lindblad  
    	
 
    	
Date: 
    	
    1/13/2012
    
	
 
    	
Name: Jan Lindblad  
    	
 
    	
 
    	
 
    
	
 
    	
Title: President and CEO
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
FRENCHMANS INVESTMENTS P/L
    	
 
    	
 
    	
 
    
	
By:  
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name:  
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
   /s/ Gerry Harrison  
    	
 
    	
Date: 
    	
    1/13/2012
    
	
Gerry Harrison
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Patrick Head
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
     /s/ Ji Jun   Hong  
    	
 
    	
Date: 
    	
    1/13/2012
    
	
Ji Jun Hong
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
IMBUDECO SA  
    	
 
    	
 
    	
 
    
	
By:  
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name:  
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Roy Isbell
    	
 
    	
 
    	
 
    

 

28

 

	
  /s/ Joon Kim  
    	
 
    	
Date: 
    	
  1/12/2012
    
	
Joon Kim
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Jeffrey Kostos
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Isabel Large
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
LAUSAR SETTLEMENT  
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
BY: EQUIOM TRUST COMPANY LIMITED  
    	
 
    	
 
    	
 
    
	
By:  
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name:  
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
     /s/ Kevin   Martin  
    	
 
    	
Date: 
    	
    1/13/2012
    
	
Kevin Martin
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
        /s/   Nicholas Martin  
    	
 
    	
Date: 
    	
      1/14/2012
    
	
Nicholas Martin
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
MORENO FINANCE LTD.  
    	
 
    	
 
    	
 
    
	
By:
    	
    /s/ Frederique Meyer  
    	
 
    	
Date: 
    	
      1/13/2012
    
	
 
    	
Name: Frederique Meyer  
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Don Nissanka
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Michael Pringle
    	
 
    	
 
    	
 
    

 

29

 

	
    /s/ Peter Brian   Quigley  
    	
 
    	
Date: 
    	
      1/12/2012
    
	
Peter Brian Quigley
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Peter Shaw
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Graham Sizer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Keith Sprules
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
   /s/ Henri Teysseyre  
    	
 
    	
Date: 
    	
      1/13/2012
    
	
Henri Teysseyre
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Jurgen Toorneman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
  /s/ James Ure  
    	
 
    	
Date: 
    	
  1/18/2012
    
	
James Ure
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
Marc Wolff
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
      /s/   Donald Wright  
    	
 
    	
Date: 
    	
  1/18/2012
    
	
Donald Wright
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
1998 CHRISTOPHER MULKEY IRREVOCABLE TRUST  
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
    /s/ Christopher   Mulkey  
    	
 
    	
Date: 
    	
  1/13/2012
    
	
 
    	
Name: Christopher Mulkey  
    	
 
    	
 
    	
 
    
	
 
    	
Title: Trustee
    	
 
    	
 
    	
 
    

 

30

 

	
 
    	
 
    	
Date:
    	
 
    
	
Jalal Bagherli
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date:
    	
 
    
	
Sonke Bandixen
    	
 
    	
 
    

 

 

	
THE BELEM SETTLEMENT
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Consilium   Treuhand AG
    	
 
    	
Date: 
    	
1/23/2012
    
	
 
    	
Name: Consilium Treuhand AG
    	
 
    	
 
    	
 
    
	
 
    	
Title: Trustee
    	
 
    	
 
    	
 
    

 

 

	
BURSHA HOLDINGS
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Daniel Shamoon
    	
 
    	
Date: 
    	
1/13/2012
    
	
 
    	
Name: Daniel Shamoon
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    
						

 

 

	
/s/ Jens Erik Christensen
    	
 
    	
Date: 
    	
1/13/2012
    
	
Jens Erik   Christensen
    	
 
    	
 
    	
 
    
					

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Marisa Chung
    	
 
    	
 
    	
 
    

 

 

	
CONTINENTAL CASUALTY COMPANY
    	
 
    
	
 
    	
 
    	
 
    	
Date: 
    	
1/12/2012
    
	
By:
    	
/s/ Albert   Miralles, Jr.
    	
 
    	
 
    	
 
    
	
 
    	
Name: Albert Miralles, Jr.
    	
 
    	
 
    	
 
    
	
 
    	
Title: Senior Vice President and Treasurer
    	
 
    	
 
    	
 
    
						

 

 

	
/s/ Louis D’Avanzo
    	
 
    	
Date: 
    	
1/13/2012
    
	
Louis D’Avanzo
    	
 
    	
 
    	
 
    

 

 

	
/s/ Sarah Drnec
    	
 
    	
Date: 
    	
1/13/2012
    
	
Sarah Drnec
    	
 
    	
 
    	
 
    

 

31

 

 

	
/s/ Jon D. and   Julia M. Ellis
    	
 
    	
Date: 
    	
1/13/2012
    
	
Jon D. and Julia   M. Ellis
    	
 
    	
 
    	
 
    

 

 

	
/s/ Michael and   Anne Gold
    	
 
    	
Date: 
    	
1/13/2012
    
	
Michael and Anne   Gold
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Thomas W. Hallagan
    	
 
    	
 
    	
 
    

 

 

	
/s/ Max Heckl
    	
 
    	
Date: 
    	
1/13/2012
    
	
Max Heckl
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
John Herschel
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Antony John   Hitchen
    	
 
    	
 
    	
 
    

 

 

	
/s/ Peter J.   Hofbauer
    	
 
    	
Date: 
    	
1/11/2012
    
	
Peter J. Hofbauer
    	
 
    	
 
    	
 
    

 

 

	
JASADI INVESTMENTS LTD.
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Date: 
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

	
/s/ Ulf Kasshag
    	
 
    	
Date: 
    	
1/12/2012
    
	
Ulf Kasshag
    	
 
    	
 
    	
 
    

 

 

	
/s/ Randle   Kenilworth
    	
 
    	
Date: 
    	
1/13/2012
    
	
Randle Kenilworth
    	
 
    	
 
    	
 
    

 

32

 

	
 
    	
 
    	
Date: 
    	
 
    
	
John D. Mulkey
    	
 
    	
 
    	
 
    

 

 

	
JOHN MULKEY 1998   IRREVOCABLE TRUST
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Date: 
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

	
ORKHIS GMBH
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Muller Anton
    	
 
    	
Date: 
    	
1/13/2012
    
	
 
    	
Name: Muller Anton
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

 

	
/s/ M. J. Peagram
    	
 
    	
Date: 
    	
1/12/2012
    
	
M. J. Peagram
    	
 
    	
 
    	
 
    

 

 

POTOMAC ENERGY FUND, L.P.

 

	
By:
    	
POTOMAC ENERGY GP, LLC, GENERAL PARTNER
    

 

	
By:
    	
/s/ Daniel Nadash
    	
 
    	
Date: 
    	
 
    
	
 
    	
Name: Daniel Nadash
    	
 
    	
 
    	
 
    
	
 
    	
Title: Managing Director
    	
 
    	
 
    	
 
    

 

 

	
ROBIN WAY PARTNERSHIP
    	
 
    
	
By:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

	
/s/ Michael Romanoff
    	
 
    	
Date: 
    	
1/12/2012
    
	
Michael Romanoff
    	
 
    	
 
    	
 
    

 

 

	
/s/ Stuart   Romanoff
    	
 
    	
Date: 
    	
1/12/2012
    
	
Stuart Romanoff
    	
 
    	
 
    	
 
    

 

33

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Clive Rumens
    	
 
    	
 
    	
 
    

 

 

	
/s/ AC Russell
    	
 
    	
Date: 
    	
1/13/2012
    
	
Angus Charles Russell
    	
 
    	
 
    	
 
    

 

 

	
ST CAPITAL AG
    	
 
    
	
By:
    	
/s/ Teemu   Vasanuarti
    	
 
    	
Date:
    	
1/30/2012
    
	
 
    	
Name: Teemu Vasanuarti
    	
 
    	
 
    	
 
    
	
 
    	
Title: CEO
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    
	
STEFFENSEN ASSET   MANAGEMENT S.A.M. APS
    	
 
    	
Date:
    	
1/13/2012
    
	
By:
    	
/s/ Ole Steffensen
    	
 
    	
 
    	
 
    
	
 
    	
Name: Ole Steffensen
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

 

	
/s/ Todd Sycoff
    	
 
    	
Date: 
    	
 
    
	
Todd Sycoff
    	
 
    	
 
    	
 
    

 

 

	
TISU INVESTMENT LTD.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Tis Prager
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: Tis Prager
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Anthony J. Vespa
    	
 
    	
 
    	
 
    

 

 

	
/s/ Pascal Voltzenlugel
    	
 
    	
Date: 
    	
1/12/2012
    
	
Pascal Voltzenlugel
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Marc Waeterschoot
    	
 
    	
 
    	
 
    

 

34

 

	
/s/ Greg & Maxine Wetanson
    	
 
    	
Date: 
    	
1/12/2012
    
	
Greg & Maxine Wetanson
    	
 
    	
 
    	
 
    

 

 

	
/s/ Anita Tishman Winkler
    	
 
    	
Date: 
    	
1/12/2012
    
	
Anita Tishman Winkler
    	
 
    	
 
    	
 
    

 

 

	
/s/ Jean-Pierre Wyss
    	
 
    	
Date: 
    	
1/12/2012
    
	
Jean-Pierre Wyss
    	
 
    	
 
    	
 
    

 

 

	
ZOAR INVEST APS
    	
 
    
	
By:
    	
/s/ Ib Sonderby
    	
 
    	
Date:
    	
1/12/2012
    
	
 
    	
Name: Ib Sonderby
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

35

 

IN WITNESS WHEREOF, each of the undersigned holders of Series C Convertible Preferred Stock, par value $0.001 per share, of the Company has executed this signature page as of the date set forth below; and, by execution and delivery hereof, such holder hereby agrees to join in and be bound by the terms and conditions of (i) the Second Amended and Restated Voting and Drag-Along Agreement as a “Series C Holder” thereunder, (ii) the Second Amended and Restated Investor Rights Agreement as a “Series C Holder” thereunder and (iii) the Second Amended and Restated Right of First Refusal and Co-Sale Agreement as a “Series C Holder” thereunder, each in the form delivered to the undersigned by the Company, and authorizes this signature page to be attached to the Second Amended and Restated Voting and Drag-Along Agreement, the Second Amended and Restated Investor Rights Agreement and the Second Amended and Restated Right of First Refusal and Co-Sale Agreement, or counterparts thereof.

 

36

 

	
THE LAUSAR SETTLEMENT
    	
 
    
	
 
    	
 
    
	
By:
    	
EQUIOM TRUST COMPANY LIMITED
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Jalal Bagherli
    	
 
    	
 
    	
 
    

 

 

	
THE BELEM SETTLEMENT
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Consilium   Treuhand AG
    	
 
    	
Date:
    	
1/23/2012
    
	
 
    	
Name: Consilium Treuhand AG
    	
 
    	
 
    	
 
    
	
 
    	
Title: Trustee
    	
 
    	
 
    	
 
    

 

 

	
CONTINENTAL CASUALTY COMPANY
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Albert J.   Miralles, Jr.
    	
 
    	
Date:
    	
1/12/2012
    
	
 
    	
Name: Albert J. Miralles
    	
 
    	
 
    	
 
    
	
 
    	
Title: Senior Vice President and Treasurer
    	
 
    	
 
    	
 
    

 

 

	
CRAMER INVEST APS
    	
 
    
	
By:
    	
/s/ Peter W   Christensen
    	
 
    	
Date:
    	
1/14/2012
    
	
 
    	
Name: Peter W Christensen
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

 

	
/s/ Sarah Drnec
    	
 
    	
Date: 
    	
1/13/2012
    
	
Sarah Drnec
    	
 
    	
 
    	
 
    

 

 

	
FRENCHMANS INVESTMENTS P/L
    	
 
    
	
By:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

37

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Michael and Anne Gold
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Patrick Michael Head
    	
 
    	
 
    	
 
    

 

 

	
/s/ Max Heckl
    	
 
    	
Date: 
    	
1/13/2012
    
	
Max Heckl
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
John Hershcel
    	
 
    	
 
    	
 
    

 

 

	
/s/ Antony John Hitchen
    	
 
    	
Date: 
    	
1/11/2012
    
	
Antony John Hitchen
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Roy Isbell
    	
 
    	
 
    	
 
    

 

 

	
JASADI INVESTMENTS LTD.
    	
 
    
	
By:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

	
/s/ Ulf Kasshag
    	
 
    	
Date: 
    	
1/12/2012
    
	
Ulf Kasshag
    	
 
    	
 
    	
 
    

 

 

	
/s/ Nicholas Martin
    	
 
    	
Date: 
    	
1/14/2012
    
	
Nicholas Martin
    	
 
    	
 
    	
 
    

 

 

	
POTOMAC ENERGY FUND, L.P.
    	
 
    

 

	
By:
    	
POTOMAC ENERGY GP, LLC, GENERAL PARTNER
    

 

	
By:
    	
/s/ Daniel Nadash
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: Daniel Nadash
    	
 
    	
 
    	
 
    
	
 
    	
Title:Managing Director
    	
 
    	
 
    	
 
    

 

38

 

	
 
    	
 
    	
Date: 
    	
 
    
	
Michael Romanoff
    	
 
    	
 
    	
 
    

 

 

	
/s/ Stuart Romanoff
    	
 
    	
Date: 
    	
1/12/2012
    
	
Stuart Romanoff
    	
 
    	
 
    	
 
    

 

 

	
/s/ Angus Charles Russell
    	
 
    	
Date: 
    	
1/13/2012
    
	
Angus Charles Russell
    	
 
    	
 
    	
 
    

 

 

	
STEFFENSEN ASSET   MANAGEMENT S.A.M. APS
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Ole Steffensen
    	
 
    	
Date:
    	
1/13/2012
    
	
 
    	
Name: Ole Steffensen
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

 

	
TISU INVESTMENT   LTD.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Tis Prager
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: Tis Prager
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

 

	
/s/ Greg & Maxine Wetanson
    	
 
    	
Date: 
    	
1/12/2012
    
	
Greg & Maxine Wetanson
    	
 
    	
 
    	
 
    

 

 

	
/s/ Donald J. Wright
    	
 
    	
Date: 
    	
1/12/2012
    
	
Donald J. Wright
    	
 
    	
 
    	
 
    

 

 

	
/s/ Jean-Pierre Wyss
    	
 
    	
Date: 
    	
1/11/2012
    
	
Jean-Pierre Wyss
    	
 
    	
 
    	
 
    

 

39

 

	
ZOAR INVEST APS
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Ib Sonderby
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: Ib Sonderby
    	
 
    	
 
    	
 
    
	
 
    	
Title: Director
    	
 
    	
 
    	
 
    

 

 

	
/s/ Robert MacArthur
    	
 
    	
Date: 
    	
1/12/2012
    
	
Robert MacArthur
    	
 
    	
 
    	
 
    

 

 

	
WANXIANG AMERICA   CORPORATION
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

	
THE LONDON TRUST
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Justin Callen
    	
 
    	
Date:
    	
1/12/2012
    
	
 
    	
Name: Justin Callen
    	
 
    	
 
    	
 
    
	
 
    	
Title: Trustee
    	
 
    	
 
    	
 
    

 

 

	
INVESTRU APS
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: 
    	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
 
    	
 
    	
 
    

 

 

	
TANFIELD GROUP PLC
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Charles Brooks
    	
 
    	
Date:
    	
 
    
	
 
    	
Name: Charles Brooks
    	
 
    	
 
    	
 
    
	
 
    	
Title: Finance Director
    	
 
    	
 
    	
 
    

 

40

 

EXHIBIT A

 

SERIES D HOLDERS

 

Pekka Ala-Pietila

Arlington Fund Ltd.

Belem Settlement

Ian David Bower

BURSHA Holdings

Continental Casualty Company

Cramer Invest APS

Sarah Drnec

Robert Druten

Epsom Assets Ltd

Frenchmans Investments P/L

Michael Gold and Anne Gold

Neil Harris

Patrick Head

Ulf Kasshag

Jonathan R. Legg

Robert J. MacArthur

Thomas S. Pernetti, Jr.

Potomac Energy Fund, L.P.

Seraina Prager

Patrick Prager

Michael Romanoff

Stuart Romanoff

Angus Russell

Sia and Associates, LLC

Cal Simmons

John F. Smith

ST Capital AG

Akani Thapthimthong

Tisu Investment Ltd.

Wanxiang America Corporation

Jean-Pierre Wyss

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}]]