Document:

Unassociated Document

    February
11, 2010

    

    Inovachem,
Inc.

    44645
Guildford Drive, Suite 201

    Ashburn,
VA  20147

    

    Attn:        Mr.
Eric Takamura, Chief Executive Officer

    

    Dear Mr.
Takamura:

    

    This
letter agreement (this “Agreement”) confirms the agreement between Inovachem,
Inc. (the “Company”) and certain existing investors in the Company set forth on
Exhibit A attached hereto (the “Investors”) concerning the potential purchase of
Class A Preferred Stock of the Company (the “Preferred Stock”) subject to and in
accordance with the terms and conditions set forth in this
Agreement.  The undersigned is acting as agent of the Investors for
purposes of this Agreement; provided however that: (i) the rights and
obligations of each Investor hereunder are several and not joint; (ii) no action
taken by any Investor hereunder shall be deemed to constitute the Investors as a
partnership, group or joint venture or as acting in concert with one another;
and (iii) each Investor shall be entitled to enforce its rights hereunder
without regard to any other Investor.

    

    The
Company shall permit the Investors, their agents and their designated
representatives reasonable access during norma business hours and upon
reasonable notice full and complete access to inspect, review and appraise the
Company and its technology for a period of seventy-five days from the date of
this Agreement. The Company shall arrange for the Investors, their agents and
their designated representatives to discuss with appropriate directors,
officers, employees, customers and representatives of the Company such matters
relative to the Company and its technologies including review of patents,
know-how and other intellectual property of the Company, financial data, and
other business matters as the Investors may reasonably request. If requested by
the Company, as a condition hereof the Investors agree to execute and deliver to
the Company its standard confidentiality agreement.

    

    Upon the
earlier of (i) the effectiveness of the Form S-1 Registration Statement filed by
the Company during the period in which this Agreement is in effect (the
“Registration Statement”) or (ii) the one hundred eightieth (180) day after the
date hereof, each Investor shall have the pro rata right (but not the
obligation) to purchase shares of Preferred Stock of the Company at a price per
share of $0.15 in an aggregate amount of no less than $500,000.00 to a
maximum  amount of $700,000.00, pro rata or as otherwise agreed by the
Investors, with such additional rights and privileges as set forth on Exhibit B
attached hereto and on such additional terms and conditions set forth on Exhibit
B. Such pro rata right shall be based on such Investor’s ownership of common
stock of the Company relative to the total amount held by all Investors, as
determined on the date hereof.  If the Registration Statement is not
declared effective by the Securities and Exchange Commission (the “SEC”) within
180 days from the date of this Agreement, the Investors may exercise the
purchase right at such time. The parties shall enter into such additional
documentation to evidence the purchase of the Preferred Stock as is customary in
transactions of this nature. This purchase right shall commence immediately
after the effectiveness of the Registration Statement and shall expire one
hundred eighty days after the date of this Agreement (“the Term”). The Investors
shall have the right to extend the Term for an additional sixty (60) days if the
Registration Statement has not been declared effective upon conclusion of the
Term. The Company shall provide Investors and their agent a written notice
immediately upon being informed by the SEC that the Registration Statement has
been declared effective.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    The
number of shares of Preferred Stock to be purchased hereunder and the price at
which they are purchasable shall be subject to equitable adjustment in the event
of any stock split, stock dividend or other similar distribution on capital
stock in capital stock of the Company.

    

    The
Company shall execute and deliver such instruments, certificates and other
documents and take such other action from time to time following the date hereof
and without further consideration as the other parties hereto may reasonably
require in order to effectuate the terms and provisions of this Agreement and
the transactions contemplated hereby.  In no event shall any party
hereto be obligated to take any action in violation of any regulation or law to
which it is subject.

    

    Please
execute where indicated below to evidence your intent to be legally bound by the
terms hereof.

    

    
      
        	 
      	
                Very
      truly yours,

              	 
      
	 
      	 
      	 
      
	 
      	
                /s/ Uzi Halevy

              	 
      
	 
      	 
      	 
      
	 
      	
                UZI
      HALEVY, on behalf of the Investors

              	 
      

      

    

    

    Accepted
and agreed to on this 11 day of February, 2010.

    

    INOVACHEM,
INC.

    

    
      
        	
                By:

              	
                /s/ Henry Toh

              	 
      

      

    

    Name:
Henry Toh

    Title:
Vice Chairman

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    EXHIBIT
A

    (INTENTIONALLY
OMITTED)

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    EXHIBIT-B

    Summary
of terms of the investment in Preferred Stock of Inovachem, Inc (“Inovachem” or
the “Company”)

    

    1.           Inovachem
shall issue the Investors Class A Preferred Stock, at $0.15/share, convertible
to shares of Common Stock at the ratio of 1 to 1, subject to standard
adjustments.  The Investors will have the right to invest in a minimum
of $500,000.00 of Preferred Stock up to a maximum of $700,000.00.

    

    2.           Anti-Dilution.    If
the Company  issues new securities to third parties at a price per
share lower than the price per share applicable to this
investment  ($0.15/per share),  the purchase price of each
of the shares of Preferred Stock purchased by the Investors, shall be adjusted
according to a “full ratchet” adjustment formula and the Company shall issue,
free of charge to each Investor, such additional shares of Preferred Stock so
that the total number of shares held by the Investors equals that number that
would have been issued at the lower price.  This full ratchet
adjustment shall be valid for 18 months from the date of closing. Subsequent to
the 18 month period, the anti-dilution provision for price adjustment shall be
based on the “weighted average” method.   The foregoing
antidilution shall not apply to:

    

    (i)           the
issuance to employees and consultants of common stock or options to purchase
common stock pursuant to an approved share option plan within a Board approved
option pool; or

    

    (ii)          the
issuance of shares to one or more strategic investors; provided however that:
(A) such strategic investor shall invest a minimum of $5 million individually or
$7.5 million in the aggregate with other strategic investors, (B) such
investment shall be at a price per share of not lower than $0.13, (C) the
strategic transaction is in the best interests of the Company, and (D) the
strategic transaction is approved by at least 2/3 of the entire Board of
Directors of the Company.

    

    4.           Pre-Emptive
Rights: So long as the Investors shall hold at least 5% in the aggregate of the
outstanding share capital of the Company (including common stock and preferred
stock) they shall have the right to maintain their percentage ownership in the
Company by purchasing a pro rata portion of any further issuance of securities
by the Company at the offering price, subject to customary exceptions (existing
options; shares or options to employees under a Board approved ESOP
pool).

    

    5.           Rights
Granted to Significant Shareholders.  Where the current or future
By-Laws or Certificate of Incorporation of the Company grant certain rights and
privileges to shareholders holding a certain prescribed percentage
of  the total issued capital stock of the Company, the Investors shall
be entitled to cumulate their shareholding for the purpose of calculating the
percentage holdings entitled to such rights and or privileges. The Investors
shall be entitled to any such rights and privileges if the aggregate ownership
percentage held by the Investors exceeds the requisite amount for an individual
shareholder to be entitled to such rights and privileges.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    6.           Independent
Nature of Each Investor’s Obligations and Rights.  The obligations
of each Investor under this Agreement or any other transaction document are
several and not joint with the obligations of any other Investor,
and no Investor shall be responsible in any way for the performance of the
obligations of any other Investor under any transaction document
contemplated hereby.  Nothing contained herein or in this Agreement or any
other transaction document, and no action taken by any Investor pursuant
hereto, shall be deemed to constitute the Investors as a partnership, an
association, a joint venture or any other kind of entity, or create a
presumption that the Investors are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by this
Agreement or any other transaction document, and the Company acknowledges that
the Investors are not acting in concert or as a group with respect to such
obligations or the transactions contemplated by Agreement and any other
transaction document.  Each Investor shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights
arising out of this Agreement or out of any other transaction document, and it
shall not be necessary for any other Investor to be joined as an additional
party in any proceeding for such purpose.

    

    7.           Board
Representation.  The Investors shall be entitled to an additional seat
on the Board of the Company upon closing of the purchase of the Preferred Stock
for so long as they hold the Preferred Stock.

    

    8.           The
Investors shall be entitled to a grant of equity of the Company equal to 10% of
the total value of the investment in the Preferred Stock, based on a share value
of $0.15/share. The parties shall determine the form of such issuance (i.e.
warrants or options with nominal exercise price or other form to be determined)
prior to closing of the investment in the Preferred Stock.  If, at the
time of the closing of the investment in the Preferred Stock, the Investors have
not already received an equity grant similar to the foregoing in connection with
their investment in the common stock of the Company on the date hereof, the fee
hereunder shall be increased based on the aggregate value of the investment in
the common stock and the Preferred Stock.

    

    9.           The
Investors shall be entitled to enter into an option agreement with Eric Takamura
on identical terms as those provided to the investors in the Company’s private
placement of common stock in January 2010 covering the Preferred Stock; provided
that the term of the option agreement shall commence on the date of the closing
of the investment in the Preferred Stock.

    

    10.         The
Preferred Stock shall include such additional terms, rights and privileges as
are commonly found in securities of this nature.  The Company shall
provide such documentation, enter into agreements and execute such instruments
as are reasonably requested by the Investors to consummate the transactions
contemplated hereby.

    
      
         

      

      
        2Unassociated Document

    

      STOCK PLEDGE
AGREEMENT

       

      This Stock Pledge Agreement (this
“Agreement”) dated as of February 11, 2010, between Eric Takamura (“Pledgor”)
and Uzi Halevy (the “Pledgee Representative”).

       

      BACKGROUND

       

      WHEREAS, effective as of the date
hereof, those parties listed on Schedule 1 hereto
(each a “Pledgee”, together the “Pledgees”) have entered into a subscription
agreement (“Subscription Agreement”) with NuGen Mobility, Inc., a Delaware
corporation and wholly-owned subsidiary of InovaChem, Inc., a Delaware
corporation (“InovaChem”) for the purchase of an aggregate of $500,000 of common
stock, par value $0.001 per share, of InovaChem (the “Common Stock”) at a
purchase price of $0.15 per share (“Purchase Price”);

       

      WHEREAS, the Pledgor is a significant
stockholder and Chairman, Chief Executive Officer and President of
InovaChem;

      

      WHEREAS, the Pledgor has agreed to
pledge certain securities of InovaChem to secure certain anti-dilution rights
granted to the Pledgees; and

      

      WHEREAS,
in order to induce the Pledgees to make an aggregate investment of
$500,000 in InovaChem and enter into the Subscription Agreement, Pledgor has
agreed to pledge and grant a security interest in the collateral described
herein to the Pledgees on the terms and conditions set forth
herein.

      

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

      

      1.           Pledge and Grant of Security
Interest.  To secure the full and punctual payment of shares to
each Pledgee in the event of a Dilution Event (as defined below), Pledgor hereby
pledges, assigns, hypothecates, transfers and grants a security interest to the
Pledgees, pro rata as set forth on Schedule 1 hereto, in
1,000,000 shares of Common Stock held by Pledgor (the
“Collateral”).

       

      2.           Delivery of
Collateral.  All certificates representing or evidencing the
Collateral shall be delivered to and held by Gil Melman (the “Collateral
Holder”) at Selman Munson & Lerner P.C., Two Memorial City Plaza, 820
Gessner, Suite 800, Houston, TX 77024 on behalf of the Pledgees and shall be
accompanied by duly executed instruments of transfer or assignment in blank, all
in form and substance satisfactory to the Pledgee Representative. Pledgor hereby
authorizes InovaChem upon demand by the Pledgee Representative to deliver any
certificates, instruments or other distributions issued in connection with the
Collateral directly to the Collateral Holder, in each case to be held by the
Collateral Holder, subject to the terms hereof.  Upon the occurrence
of a Dilution Event, the Pledgee Representative shall have the right, during
such time in the Pledgee Representative’s discretion and with notice to the
Pledgor, to transfer to or to register in the names of the Pledgees or any of
their nominees the Collateral pro ratably in accordance with their respective
interest therein.

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

       

      3.           Anti Dilution Rights;
Dilution Event.

       

      (a) If, at any time on or after
February 11, 2010 (the “Original Issue Date”) and prior to August 11, 2011,
InovaChem issues any Common Stock or any securities convertible into the Common
Stock (“Convertible Securities”), other than an Excepted Issuance (as defined
below), for a consideration per share less than $0.15 per share (a “Dilution
Event”), then immediately upon such issuance and thereafter successively upon
each such issuance, each Pledgee shall have a pro rata right, in proportion to
such Pledgee’s investment in InovaChem as of the date hereof, to receive from
the Collateral, that number of additional shares that would have been issued to
such Pledgee had the Purchase Price been reduced to such other lower per share
price.  For purposes of this Agreement, an Excepted Issuance shall
include issuances:

       

      (i)           upon
conversion of any shares of series preferred stock of InovaChem outstanding as
of the Original Issue Date;

      (ii)    
     pursuant to the exercise of Convertible Securities
outstanding as of the Original Issue Date;

      (iii)         for
full or partial consideration in connection with a strategic merger,
acquisition, consolidation or purchase of substantially all of the securities or
assets of a corporation or other entity approved by InovaChem’s Board of
Directors (the “Board”);

      (iv)        in
connection with strategic license agreements and other partnering arrangements
so long as such issuances are not for the purpose of raising capital and are
approved by the Board; and

      (v)         shares
of Common Stock and/or options, warrants or other Common Stock purchase rights
and the Common Stock issued pursuant to such options, warrants or other rights
(as adjusted for any stock dividends, combinations, splits, recapitalizations
and the like after the Original Issue Date) to employees, officers or directors
of, or consultants or advisors to, InovaChem pursuant to equity incentive plans
or grants that are approved by the Board.

      (b)       No
fractional shares of Common Stock shall be issued upon a Dilution
Event.  If a Pledgee has a right to a fractional share pursuant to
this Section 3(a), the Pledgor shall, in lieu of issuing any fractional share,
pay cash equal to the product of such fraction multiplied by the fair market
value of one share of Common Stock (as determined by the Board) on the date of
the Dilution Event.

       

      4.           Representations and
Warranties of Pledgor.  Pledgor hereby represents and warrants
to each Pledgee that:

       

      (a)           The
execution, delivery and performance by Pledgor of this Agreement and the pledge
of the Collateral hereunder do not and will not result in any violation of any
agreement, indenture, instrument, license, judgment, decree, order, law,
statute, ordinance or other governmental rule or regulation applicable to
Pledgor.

       

      (b)           This
Agreement constitutes the legal, valid, and binding obligation of Pledgor
enforceable against Pledgor in accordance with its terms.

       

      (c)           Pledgor
is the direct and beneficial owner of each share of the Collateral.

       

      (d)           All
of the shares of the Collateral have been duly authorized, validly issued and
are fully paid and nonassessable.

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      (e)           No
consent or approval of any person, corporation, governmental body, regulatory
authority or other entity, is or will be necessary for (i) the execution,
delivery and performance of this Agreement, (ii) the exercise by any Pledgee of
any rights with respect to the Collateral or (iii) the pledge and assignment of,
and the grant of a security interest in, the Collateral hereunder.

       

      (f)       
    Pledgor has the requisite power and authority to enter
into this Agreement and to pledge and assign the Collateral to the Pledgees in
accordance with the terms of this Agreement.

       

      (h)           Pledgor
owns the Collateral and, except for the pledge and security interest granted to
the Pledgees, the Collateral shall be free and clear of any other security
interest, pledge, claim, lien, charge, hypothecation, assignment, offset or
encumbrance whatsoever, other than those imposed under applicable securities
laws (collectively, “Liens”).

       

      5.           Covenants.  Pledgor
covenants that:

       

      (a)           Pledgor
will not sell, assign, transfer, convey, or otherwise dispose of its rights in
or to the Collateral or any interest therein; nor create, incur or permit to
exist any Lien whatsoever with respect to any of the Collateral or the proceeds
thereof other than that created hereby.

       

      (b)           Pledgor
shall at any time, and from time to time, at its own expense, upon the written
request of the Pledgee Representative, execute and deliver such further
documents and do such further acts and things as the Pledgee Representative may
reasonably request in order to effect the purposes of this Agreement including,
but without limitation, delivering to the Collateral Holder upon the occurrence
of a Dilution Event, irrevocable proxies in respect of the Collateral in form
satisfactory to the Pledgee Representative.

       

      6.           Voting Rights and
Dividends.  Pledgor shall retain all voting control and all
other rights and incidents thereto until the occurrence of a Dilution
Event.  Until the occurrence of a Dilution Event, Pledgor shall retain the
right to receive and retain any and all payments, proceeds, dividends,
distributions, monies, compensation, property, assets, instruments or rights,
other than stock dividends or dividends or other amounts payable under or in
connection with any recapitalization, restructuring or other non-ordinary course
event, paid, issued or distributed from time to time in respect of the
Collateral pledged by the Pledgor.

       

      7.           No
Waiver.  Any and all rights of each Pledgee with respect to the
Liens granted under this Agreement shall continue unimpaired, and Pledgor shall
be and remain obligated in accordance with the terms hereof, notwithstanding (a)
the bankruptcy, insolvency or reorganization of Pledgor or (b) the release or
substitution of any item of the Collateral at any time, or of any rights or
interests therein.  Pledgor hereby waives all notice of any such
delay, extension, release, substitution, renewal, compromise or other
indulgence, and hereby consents to be bound hereby as fully and effectively as
if Pledgor had expressly agreed thereto in advance.  No delay or
extension of time by the Pledgee Representative in exercising any power of sale,
option or other right or remedy hereunder, and no failure by the Pledgee
Representative to give notice or make demand, shall constitute a waiver thereof,
or limit, impair or prejudice any Pledgee’s right to take any action against
Pledgor or to exercise any other power of sale, option or any other right or
remedy.

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      8.           Waivers.

       

      (a)           EACH
PARTY HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH,
OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO OR ANY OTHER AGREEMENT EXECUTED OR DELIVERED BY THEM IN
CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR
TORT OR OTHERWISE AND EACH PARTY HERETO HEREBY AGREES AND CONSENTS THAT ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH PARTY TO THE
WAIVER OF ITS RIGHT TO TRIAL BY JURY.

      

      9.           Release of Pledged Shares
from Pledge.   Upon the termination or expiration of this
Agreement, all certificates evidencing Collateral and all documents and
instruments of transfer or assignment related thereto shall be promptly returned
to Pledgor, whereupon all rights of the Pledgees to the Collateral hereunder
shall be terminated.

       

      10.         Miscellaneous.

       

      (a)           This
Agreement constitutes the entire and final agreement among the parties with
respect to the subject matter hereof and may not be changed, terminated or
otherwise varied except by a writing duly executed by the parties
hereto.

       

      (b)           No
waiver of any term or condition of this Agreement, whether by delay, omission or
otherwise, shall be effective unless in writing and signed by the party sought
to be charged, and then such waiver shall be effective only in the specific
instance and for the purpose for which given.

       

      (c)           The
Pledgor hereby irrevocably appoints the Pledgee Representative as the Pledgor's
attorney-in-fact, with full authority in the place and stead of the Pledgor and
in the name of the Pledgor, or otherwise, from time to time at Pledgee
Representative's discretion, to take any action and to execute any instrument
that Pledgee Representative may reasonably deem necessary or advisable to
accomplish the purposes of this Agreement.  The foregoing power of
attorney, being coupled with an interest, is irrevocable; provided, that the
foregoing power of attorney shall terminate upon the termination or expiration
of this Agreement.

       

      (d)           In
the event that any provision of this Agreement or the application thereof to
Pledgor or any circumstance in any jurisdiction governing this Agreement shall,
to any extent, be invalid or unenforceable under any applicable statute,
regulation, or rule of law, such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform to
such statute, regulation or rule of law, and the remainder of this Agreement and
the application of any such invalid or unenforceable provision to parties,
jurisdictions, or circumstances other than to whom or to which it is held
invalid or unenforceable shall not be affected thereby, nor shall same affect
the validity or enforceability of any other provision of this
Agreement.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

       

      (e)           This
Agreement shall be binding upon Pledgor, and Pledgor’s successors and assigns,
and shall inure to the benefit of the Pledgees and their successors and
assigns.

       

      (f)   
        Any notice or other
communication required or permitted pursuant to this Agreement shall be given in
accordance with the Purchase Agreement.

       

      (g)           This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Texas.

       

      (h)           This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which when taken together shall constitute one and
the same agreement.  Any signature delivered by a party by facsimile
transmission shall be deemed an original signature hereto.

       

      [SIGNATURE
PAGE FOLLOWS]

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

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

       

      
        
          
            
              
                	
                        PLEDGOR:

                      
	 
      
	
                        /s/
      Eric Takamura

                      
	
                        Eric
      Takamura

                      
	 
      
	
                        PLEDGEE
      REPRESENTATIVE:

                      
	 
      
	
                        /s/
      Uzi Halevy

                      
	
                        Uzi
      Halevy, on behalf of the
Pledgees

                      

              

            

          

        

      

       

      The
undersigned hereby acknowledges and consents to the Stock Pledge Agreement and
agrees to take all steps necessary or desirable to recognize the Pledgees as the
beneficial owners of the Collateral upon notice from the Pledgee Representative
that a Dilution Event has occurred in accordance with the terms and provisions
of this Stock Pledge Agreement.

       

      
        
          
            	
                    INOVACHEM,
      INC.

                  
	 
      	 
      
	
                    By: 

                  	
                    Eric Takamura

                  
	
                    Eric
      Takamura

                  
	
                    Chief
      Executive Officer and President

                  

          

           

          [Signature
Page to Stock Pledge Agreement]

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