Document:

Unassociated Document

Exhibit 10.52

 

NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAW AND NEITHER MAY BE SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE FORM AND SUBSTANCE OF WHICH IS ACCEPTABLE TO THE ISSUER.

MERRIMAN HOLDINGS, INC.

COMMON STOCK PURCHASE WARRANT

	
Warrant No. ___

	  	
______ Shares

Original Issue Date: April 7, 2011

THIS CERTIFIES THAT, FOR VALUE RECEIVED, [________________] or its registered assigns (the "Holder") is entitled to purchase, on the terms and conditions hereinafter set forth, at any time in whole or in part from and after the Initial Exercise Date (as defined below), until 5:00 p.m., Eastern Time, on the third anniversary of the Original Issue Date, or if such date is not a day on which the Company (as hereinafter defined) is open for business, then the next succeeding day on which the Company is open for business (such date is the "Expiration Date"), but not thereafter, provided that, if Stockholder Approval is never obtained, this warrant shall never be exercisable, [_____________] Thousand (______,000) shares of the Common Stock, $0.0001 par value per share (the "Common Stock"), of MERRIMAN HOLDINGS, INC., a Delaware corporation (the "Company"), at $2.2865 per share (the "Exercise Price"), such number of shares and Exercise Price being subject to adjustment upon the occurrence of the contingencies set forth in this Warrant. Each share of Common Stock as to which this Warrant is exercisable is a "Warrant Share" and all such shares are collectively referred to as the "Warrant Shares." 

Section 1.

Definitions.

(a) "Convertible Preferred Stock" shall mean the Convertible Preferred Stock convertible into shares of Common Stock issued pursuant to the terms of the Stock Purchase Agreement.

(b) “Effective Date" shall mean the date on which the Warrant shall be deemed to have been exercised.

 

  

  

  

(c)  “Initial Exercise Date” shall mean the date upon which this Warrant receives Stockholder Approval.

(d) "Initial Issuance Date" shall mean the date first written above.

(e)  “Stockholder Approval” means that this Warrant is approved and ratified by the stockholders of the Company, in accordance with the Company’s Certificate of Incorporation, Bylaws, applicable law and Nasdaq Listing Rules.

(f) "Stock Purchase Agreement" shall mean the Convertible Preferred Stock Purchase Agreement by and among the Company and the purchasers set forth on Schedule A thereto, dated August 27, 2009.

Section 2.  Exercise of Warrant; Conversion of Warrant.

(a) This Warrant may, at the option of the Holder, be exercised in whole or in part from time to time, on or before 5:00 p.m., Eastern Time, on the Expiration Date, by delivery to the Company at its principal office (i) a written notice of such Holder's election to exercise this Warrant (the "Exercise Notice"), which notice may be in the form of the Notice of Exercise attached hereto, properly executed and completed by the Holder or an authorized officer thereof, (ii) a check or other funds (the "Funds") payable to the order of the Company, in an amount equal to the product of the Exercise Price multiplied by the number of Warrant Shares specified in the Exercise Notice, and (iii) this Warrant (the items specified in (i), (ii), and (iii) are collectively the "Exercise Materials"); provided, however, that if this Warrant is not exercised in whole immediately prior to the consummation by the Company of a Change in Control Event (as defined in the Certificate of Designation designating the rights of the holders of the Convertible Preferred Stock), then immediately following the consummation by the Company of such Change in Control Event, this Warrant will not be exercisable and shall be null and void for all purposes.

(b) As promptly as practicable, and in any event within five (5) business days after the later of (i) its receipt of the Exercise Materials and (ii) the clearing of the Funds, the Company shall execute or cause to be executed and delivered to the Holder a certificate or certificates representing the number of Warrant Shares specified in the Exercise Notice, together with cash in lieu of any fraction of a share. The stock certificate or certificates shall be registered in the name of the Holder or such other name or names as shall be designated in the Exercise Notice. The Effective Date and the date the person in whose name any certificate evidencing the Common Stock issued upon the exercise hereof is issued shall be deemed to have become the holder of record of such shares, shall be the date the Company receives the Exercise Materials, irrespective of the date of delivery of a certificate or certificates evidencing the Common Stock issued upon the exercise or conversion hereof, provided, however, that if the Exercise Materials are received by the Company on a date on which the stock transfer books of the Company are closed, the Effective Date shall be the next succeeding date on which the stock transfer books are open. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the Warrantholder a new Warrant representing the right to purchase the number of shares with respect to which this Warrant shall not then have been exercised. In the event that this Warrant is exercised, in whole in connection with a Change in Control Event, the Effective Date shall be the date of the consummation by the Company of such Change in Control Event. All shares of Common Stock issued upon the exercise or conversion of this Warrant will, upon issuance, be fully paid and non-assessable and free from all taxes, liens, and charges with respect thereto.

 

  

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Section 3.

Cashless Exercise.  In lieu of exercising this Warrant pursuant to Section 2(a), the Holder may elect to receive, without payment by the Holder of any additional consideration, shares of Common Stock equal to the value of this Warrant (or the portion thereof being cancelled) by surrender of this Warrant at the principal office of the Company together with an Exercise Notice, in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula:

Y (A - B)

X=

A

Where:

X = The number of shares of Common Stock to be issued to the

Holder pursuant to this cashless exercise;

Y = The number of Warrant Shares in respect of which the cashless exercise election is made;

A = The fair market value of one (1) share of Common Stock at the time the cashless exercise election is made; and

B = The Exercise Price (as adjusted to the date of the cashless exercise)

For purposes of this Section 3, the fair market value of one (1) share of Common Stock as of a particular date shall be determined as follows: (i) if listed or quoted for trading on a securities market or exchange, the value shall be deemed to be the average closing price of the securities on such exchange over the thirty (30) day period ending three (3) days prior to the cashless exercise election; (ii) if traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the thirty (30) day period ending three (3) days prior to the cashless exercise election; and (iii) if there is no active public market, the value shall be the fair market value thereof, as jointly determined in good faith by the Holder and the Company's Board of Directors. If the Holder and the Company's Board of Directors are unable to reach such a determination, the Holder and the Company's Board of Directors shall jointly select an appraiser, who is experienced in such matters. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne equally by the Holder and the Company.

 

  

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Section 4.

Adjustments to Warrant Shares. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 4.

(a) Subdivisions, Combinations and Other Issuances. If the Company shall at any time prior to the expiration of this Warrant subdivide its Common Stock, by split-up or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock as a dividend, the number of Warrant Shares issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the Exercise Price, but the aggregate Exercise Price payable for the total number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 4(a) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

(b) Reclassification, Reorganization and Consolidation. In case of any reclassification, capital reorganization, or change in the Common Stock of the Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 4(a) above), then, as a condition of such reclassification, reorganization, or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable in connection with such reclassification, reorganization, or change by a holder of the same number of shares of Common Stock as were purchasable by the Holder immediately prior to such reclassification, reorganization, or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise hereof, and appropriate adjustments shall be made to the Exercise Price payable hereunder, provided the aggregate Exercise Price shall remain the same.

(c) Calculations. All calculations under this Section 4 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

  

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(d) Warrant Shares.  The Company covenants and agrees that all Warrant Shares which may be issued will, upon issuance, be validly issued, fully paid, and non-assessable. The Company further covenants and agrees that the Company will at all times have authorized and reserved, free from preemptive rights, a sufficient number of shares of its Common Stock to provide for the exercise of this Warrant in full.

Section 5.

Notice of Adjustments. Upon the occurrence of each adjustment pursuant to Section 4, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price, describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. When any such adjustment is required to be made, the Company will promptly, but in any event no later than ten (10) days after said adjustment, notify the Holder of the event giving rise to such adjustment and deliver a copy of each such certificate to the Holder.

Section 6.

Registration Rights. The Holder shall be entitled to registration rights with respect to the Warrant Shares as set forth below.

(a)           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 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, or a registration on any registration form that does not permit secondary sales, the Company will:

 

(i)           promptly give written notice of the proposed registration to all 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 6(b) and 6(c) below, and in any underwriting involved therein, all of such registrable securities as are specified in a written request or requests made by any Holder or Holders received by the Company within ten (10) days after such written notice from the Company is mailed or delivered.  Such written request may specify all or a part of a Holder’s registrable 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 as a part of the written notice given pursuant to Section 6(a)(i).  In such event, the right of any Holder to registration pursuant to this Section 6 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s registrable securities in the underwriting to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company and the other selling stockholders of securities of the Company with registration rights to participate therein distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected by the Company.

 

  

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(c)           Volume Limitation.   Notwithstanding any other provision of this Section 6, if the underwriters advise the Company that marketing factors require a limitation on the number of shares to be underwritten, the number of securities that may be so included shall be allocated as follows: (i) first, to the Company, which the Company may allocate, at its discretion, for its own account, or for the account of other holders or employees of the Company; (ii) second, among all holders of registration rights requesting to include securities in such registration statement based on the pro rata percentage of registrable securities held by such holders, assuming conversion or exercise.

 

Section 7.

No Stockholder Rights. This Warrant shall not entitle Holder to any voting rights or other rights as a stockholder of the Company.

Section 8.

Transfer of Securities.

(a) This Warrant and the Warrant Shares and any shares of capital stock received in respect thereof, whether by reason of a stock split or share reclassification thereof, a stock dividend thereon, or otherwise, shall not be transferable except upon compliance with the provisions of the Securities Act of 1933, as amended (the "Securities Act"), and applicable state securities laws with respect to the transfer of such securities. The Holder, by acceptance of this Warrant, agrees to be bound by the provisions this Section 8 hereof and to indemnify and hold harmless the Company against any loss or liability arising from the disposition of this Warrant or the Warrant Shares issuable upon exercise hereof or any interest in either thereof in violation of the provisions of this Warrant.

(b) Each certificate for the Warrant Shares and any shares of capital stock received in respect thereof, whether by reason of a stock split or share reclassification thereof, a stock dividend thereon, or otherwise, and each certificate for any such securities issued to subsequent transferees of any such certificate shall (unless otherwise permitted by the provisions hereof) be stamped or otherwise imprinted with a legend in substantially the following form:

 

“THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE FORM AND SUBSTANCE OF WHICH IS ACCEPTABLE TO THE ISSUER.”          

 

  

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Section 9.

Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a new warrant (the "New Warrant"), but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable bond or indemnity, if requested.

Section 10.

Miscellaneous.  

(a) The terms of this Warrant shall be binding upon and shall inure to the benefit of any successors or permitted assigns of the Company and the Holder.

(b) Except as otherwise provided herein, this Warrant and all rights hereunder are transferable by the registered holder hereof in person or by duly authorized attorney on the books of the Company upon surrender of this Warrant, properly endorsed, to the Company. The Company may deem and treat the registered holder of this Warrant at any time as the absolute owner hereof for all purposes and shall not be affected by any notice to the contrary.

(c) Notwithstanding any provision herein to the contrary, the Holder may not exercise, sell, transfer, or otherwise assign this Warrant unless the Company is provided with an opinion of counsel satisfactory in form and substance to the Company, to the effect that such exercise, sale, transfer, or assignment would not violate the Securities Act or applicable state securities laws.

(d) All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to the Company, to: Merriman Holdings, Inc., 600 California Street, 9th Floor, San Francisco, California 94108, Attention: Chief Financial Officer, telecopier: (415) 415-248-5690, (ii) if to the Holder to: the address and telecopier number indicated on the signature pages to the Stock Purchase Agreement.

 

  

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(e) This Warrant shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Warrant shall be brought only in the state courts of State of California located in the city and county of San Francisco or in the federal courts located in the city and county of San Francisco, California. The parties and the individuals executing this Warrant and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Warrant or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

(f) The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

(g) In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

[The remainder of this page intentionally left blank]

 

  

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SIGNATURE PAGE

TO

MERRIMAN HOLDINGS, INC.

COMMON STOCK PURCHASE WARRANT

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed in its name by its duly authorized officers under seal, and to be dated as of the date first above written.

	  	  	  
	  	
MERRIMAN HOLDINGS, INC.

	  	  	  
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:  

[Signature Page to Merriman Holdings, Inc. Common Stock Purchase Warrant]

 

  

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ASSIGNMENT

(To be Executed by the Holder to effect a transfer of the foregoing Warrant)

FOR VALUE RECEIVED, the undersigned hereby sells, and assigns and transfers unto ______________________ the foregoing Warrant and the rights represented thereto to purchase shares of Common Stock, par value $0.0001 per share, of MERRIMAN HOLDINGS, INC. in accordance with terms and conditions thereof, and does hereby irrevocably constitute and appoint ________________ Attorney to transfer the said Warrant on the books of the Company, with full power of substitution.

	  	  	 
	  	
Holder:

	 
	  	  	 
	  	  	 
	  	  	 
	  	  	 
	  	  	 
	  	
Address

	 
	  	  	 
	  	
Dated: __________________, 20__

	 
	  	  	 
	  	
In the presence of:

	 
	  	  	 
	  	  	 

  

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NOTICE OF EXERCISE

[To be signed only upon exercise of Warrant]

To:

MERRIMAN HOLDINGS, INC.

The undersigned Holder of the attached Warrant hereby irrevocably elects to exercise the Warrant for, and to purchase thereunder, _________ shares of Common Stock, par value $0.0001 per share, of MERRIMAN HOLDINGS, INC., issuable upon exercise of said Warrant and hereby surrenders said Warrant.

The undersigned herewith requests that the certificates for such shares be issued in the name of, and delivered to the undersigned, whose address is ________________________________.

If electronic book entry transfer, complete the following:

Account Number:  ____________________________

Transaction Code Number: _____________________

Dated: ___________________

	  	
Holder:

	 
	  	  	 
	  	  	 
	  	  	 
	  	  	 
	  	  	 
	  	
By:

	  	 
	  	  	
Name:

	 
	  	  	
Title:

	 

NOTICE

The signature above must correspond to the name as written upon the face of the within Warrant in every particular, without alteration or enlargement or any change whatsoever.

 

  

11Unassociated Document

SEPARATION AND GENERAL RELEASE AGREEMENT

 

Caution: Read Carefully

 

This Is A Release Of All Claims

 

THIS SEPARATION AND GENERAL RELEASE AGREEMENT (“Agreement”) is voluntarily entered into as of the date(s) set forth below by and between the undersigned individual employee, Richard L. Stanley (“Employee”), and Ener1, Inc. (“Company”).

 

WHEREAS, Employee has been employed by the Company as the Chief Operating Officer of the Company and the President of the Company’s subsidiary, EnerDel, Inc., since September 16, 2009; and

 

WHEREAS, Employee’s employment was contingent upon his execution of a written agreement with the Company (which agreement was to contain, among other provisions, certain Company policies and procedures, terms and conditions relating to payments upon termination of employment, a definition of termination with “Cause,” a provision relating to Employee’s position and job duties, and restrictive covenants regarding confidentiality, non-solicitation and non-competition), which agreement was presented to Employee by the Company but which agreement was not executed by Employee or the Company; and

 

WHEREAS, the Company has terminated Employee’s employment with the Company, such termination effective as of April 8, 2011(“Separation Date”);

 

NOW, THEREFORE, in consideration of the mutual understandings, covenants, and the release contained in this Agreement, Company and Employee hereby voluntarily agree as follows:

 

1.           Definitions.  Specific terms used in this Agreement have the following meanings: (a) words such as “I,” “me,” and “my” include both the undersigned, Richard L. Stanley, and anyone who has or obtains any legal right or claims through me; and (b) “Company” means Ener1, Inc., all of its past and present officers, directors, employees, trustees, subsidiaries (including EnerDel, Inc.), agents, members, affiliates, insurers, any and all employee benefit plans (and any fiduciary of such plans) sponsored by such entities, and each such entity’s subsidiaries, predecessors, successors, and assigns, and all other entities, persons, firms, or corporations liable or who might be claimed to be liable by or through their relationship with the Company, none of whom admit any liability to me, but all of whom expressly deny any such liability; provided, however, “Company” shall not include any pension plan intended to constitute a tax-qualified retirement plan under Section 401(a) of the Internal Revenue Code of 1986, as amended.

 

2.           My Claims.  Except as provided below, the claims I am releasing (“My Claims”) include all of my rights to any relief of any kind from the Company, including without limitation, all claims I have now, whether or not I now know about the claims.  These claims, which I hereby release, include, but are not limited to the following: (a) any claim, demand, action, or cause of action, known or unknown, which arose at any time from the beginning of time to the date I execute this Agreement, and I waive all claims relating to, arising out of, or in any way connected with my employment with the Company including, without limitation, any claim, demand, action, cause of action, including money damages and claims for attorneys’ fees, based on but not limited to: (a) the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), 29 U.S.C. § 621, et seq.; (b) the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101, et seq.; (c) the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701, et seq.; (d) the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601, et seq.; (e) the Civil Rights Act of 1866 and 1964, as amended, 42 U.S.C. § 1981; (f) Employee Retirement Income Security Act, 29 U.S.C. § 1001, et seq.; (g) Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000(e), et seq.; (h) the Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.; (i) the Worker Adjustment and Retaining Notification Act, 29 U.S.C. § 2101, et seq.; (j) the Indiana Civil Rights Law, Ind. Code § 22-9-1-1, et seq., and any and all similar laws in Florida and New York; (k) the Indiana wage payment statute, Ind. Code § 22-2-4-1, et seq., the Indiana wage claims statute, Ind. Code § 22-2-9-2, and any other Indiana wage law, as well as any and all similar laws in Florida and New York; (l) any existing or potential claim or entitlement to any monetary amounts, benefits, equity or other things of value under any Company program or plan, including wages, bonuses, bonus awards, paid leave, or incentive compensation of any type, as well as equity awards of any type (including but not limited to awards and/or grants of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or Deferred Stock Units (as those terms are defined in the Plan)) which equity awards are not fully vested, exercisable, satisfied and/or settled as of the Separation Date; (m) any existing or potential agreement, contract, offer letter, representation, policy, plan, procedure, or statement, whether any of the foregoing are express or implied, oral or written (including but not limited to my offer of employment from the Company dated August 18, 2009; the form of employment agreement presented to me by the Company, which agreement I acknowledge I never executed; the Ener1, Inc. Amended and Restated 2007 Stock Incentive Plan (the “Plan”); and any “Award Agreement” I entered into with the Company (as that term is defined in the Plan)); (n) claims arising under any other federal, state and local fair employment practices law, disability benefits law, and any other employee or labor relations statute, executive order, law or ordinance, and any duty or other employment-related obligation, claims arising from any other type of statute, executive order, law or ordinance, claims arising from contract or public policy, as well as tort, tortious cause of conduct, breach of contract, intentional infliction of emotional distress, negligence, discrimination, harassment, and retaliation, together with all claims for monetary and equitable relief, punitive and compensatory relief and attorneys’ fees and costs; (o) the Indiana Constitution, the New York Constitution and the Florida Constitution; and/or (p) the United States Constitution.

 

  

  

  

I understand and agree that I am releasing the Company from any and all claims by which I am giving up the opportunity to recover any compensation, damages, equity in the Company, attorneys’ fees, or any other form of relief in any proceeding brought by me or on my behalf. Notwithstanding the foregoing, this Agreement is not intended to operate as a waiver or release of (i) any retirement or pension benefits under a tax-qualified retirement plan that are vested, the eligibility and entitlement to which shall be governed by the terms of the applicable plan, (ii) any rights or claims on account of or arising out of any a breach or default by the Company of its obligations under Paragraph 3 below (e.g., I am not waiving or releasing my rights or claims to the Separation Payment set forth in Paragraph 3) or that are by law not permitted to be waived, or (iii) equity awards of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or Deferred Stock Units (as those terms are defined in the Plan) which I have received from or which have been granted to me by the Company, to the extent such equity awards are fully vested and/or exercisable as of the Separation Date (collectively, any “Vested Award”).  I acknowledge and agree that the only Vested Award I have received from and/or which has been granted to me by the Company are 10,000 units of restricted stock, each unit being equal to one share of the Company’s common stock (the “Grant”).  I understand that I may satisfy or settle the Grant as set forth in my Award Agreement regarding the Grant, dated October 1, 2009.  Moreover, this Agreement is not intended to operate as a waiver or release of (a) any rights to defense and indemnity I may have under any Company certificate, bylaw, resolution, policy, or practice, or (b) any coverage under any liability insurance policy (such as directors’ and officers’ liability insurance).

 

I also understand that My Claims released under this Agreement do not include any rights or claims that may arise after the Effective Date of this Agreement (which is that date occurring on the eighth (8th) day after I sign this Agreement, provided that I do not revoke this Agreement as described below).  In addition, I acknowledge that the release of claims set forth above is not intended to (a) prevent me from filing a charge or complaint including a challenge to the validity of this Agreement, with the Equal Employment Opportunity Commission (“EEOC”); (b) prevent me from participating in any investigation or proceeding conducted by the EEOC; or (c) establish a condition precedent or other barrier to exercising these rights.  While I have the right to participate in an investigation, I understand that I am waiving his right to any monetary recovery arising from any investigation or pursuit of claim on my behalf.  I acknowledge that I have the right to file a charge alleging a violation of the ADEA with any administrative agency and/or to challenge the validity of the waiver and release of any claim I might have under the ADEA without either: (a) repaying to the Company the amounts paid by it to me or on my behalf under this Agreement; or (b) paying to the Company any other monetary amounts (such as attorney’s fees and/or damages).

 

3.           Company’s Agreement to Make Payments to Me .  In exchange for my release and other promises made by me in this Agreement, the Company agrees that it shall make a separation payment to me in the amount of Two Hundred Fifty Thousand Dollars ($250,000) (less taxes and other required deductions and withholdings), paid to me in a lump sum on the Company’s regular payroll date as soon as practical after I have signed and returned the Agreement to the Company, and after the seven (7) day revocation period described in Paragraph 11 expires (the “Separation Payment”).  I acknowledge that the Separation Payment described above constitutes full and fair consideration for the release of My Claims, that the Company is not otherwise obligated to make this Separation Payment to me, that the Separation Payment is in addition to any other sums to which I am otherwise due, and that I am not entitled to further amounts of any kind from the Company.  In addition, the Company shall vest immediately all 20,000 unvested units of restricted stock granted to you under the Company’s 2007 Stock Incentive Plan. I also acknowledge that I have received all other forms of compensation, of whatever kind, that may be due to me by the Company, including, without limitation, amounts earned by me prior to the Separation Date.

 

  

  

  

4.           Return of Company Property.  I hereby represent and warrant that I have returned to the Company all of its property that was ever in my possession or control.  This property includes, but is not limited to, Confidential Information (as defined in Paragraph 7(a) of this Agreement), financial and other business records, personnel records, office and other keys, directories, computer hardware and software, books, documents, memoranda, and all other records, and copies of all such items.

 

5.           Termination of Relationship.  I acknowledge that my employment with the Company is terminated as of the Separation Date referenced in an introductory paragraph to this Agreement.  I further agree not to apply for future employment with the Company, or any of its affiliates or successors.  I acknowledge that neither the Company nor its successors have any obligation, contractual or otherwise, to rehire, reemploy, recall, or hire me in the future.  I understand that this Agreement does not constitute an admission of wrongdoing by any party.

 

6.           Consultation with Attorney.  As required by the ADEA and the OWBPA, I acknowledge that the Company has advised me that it is up to me as to whether I consult an attorney prior to signing this Agreement, and that the Company has advised that I should do so.

 

7.           Non-Defamation and Confidentiality; Ongoing Obligations to Company.  In further consideration of the Separation Payment set forth above, I agree as follows:

 

(a)           Confidential Information.  I agree to protect the Company from intrusion into its business by not disclosing to any third-party any confidential information or trade secrets of the Company. Such information includes, but is not limited to, confidential information regarding the Company’s employees, services, products, marketing strategies, business plans,  operations, costs, research and development efforts, technical data and know-how, financial information, internal procedures, forecasts, methods, trade secrets, software programs, project requirements, inventions, trademarks, trade names, and similar information regarding the Company’s business (collectively referred to as “Confidential Information”).  I agree that all such Confidential Information is and shall remain the sole and exclusive property of the Company.  Except as may be expressly authorized by the Company in writing, or as may be required by law after providing due notice thereof to the Company, I agree not to disclose, or cause any other person or entity to disclose, any Confidential Information to any third party and I agree not to make use of any such Confidential Information for my own purpose or for the benefit of any other entity or person.  This obligation shall continue indefinitely, as long as the Confidential Information remains confidential (but I shall not be relieved of my obligations if any of the Confidential Information loses its confidential nature by virtue of any action or omission by me, including any breach of this Agreement).

 

  

  

  

(b)           Non-Defamation.  I agree to refrain from making any defamatory comments to anyone (including, but not limited to, the Company’s customers or business partners) concerning  the Company, its employees, agents, operations, or plans; likewise, the Company agrees that the members of the Company’s Executive Leadership will refrain from making any defamatory comments to anyone (including, but not limited to prospective employers) concerning me.  I agree that any inquiries I receive concerning the Company shall be directed to the Personnel Department of the Company for response.  In further protection of the interests of the Company, I agree that, as to any matters currently pending, or which arise relating to my employment with the Company,  I will cooperate to a reasonable extent with the Company,  and its attorneys in connection with any proceeding involving the Company before a court, an administrative agency, governmental organization, or an arbitrator.  I further understand that it is an essential and material condition of this Agreement that the  terms of this Agreement are to remain strictly confidential and shall not be disclosed by me to any person other than to my attorney, my accountant or my spouse, if any, or as required by law.

 

(c)           Restrictive Covenants.  I agree that during my employment with Company, I had access to and knowledge of Company’s Confidential Information and valuable customer and other business relationships.  I agree that in consideration of the mutual promises and covenants herein contained, during the “Restricted Period” I shall abide by the following narrow and reasonable restrictions, which restrictions are necessary to protect the Company’s legitimate business interests:

 

(i)           Non-Competition.  I shall not directly or indirectly perform any executive-level or managerial services for, invest in, provide consulting services to or otherwise engage in a Competitive Business in any geographic area in which the Company engages in its business as of the Effective Date (such geographic area to include but not be limited to the United States of America).

 

(ii)           Non-Solicitation.  I shall not directly or indirectly promote, market, sell or provide any products or services that are the same or substantially similar to (in terms of functionality or purpose) or that are a competitive alternative for those products or services offered or sold by the Company as of the Effective Date, to any Company Customer.  This restriction shall be limited to those Company Customers with whom I had any direct or supervisory contact during my employment with the Company or about which I had access to Confidential Information during my employment with the Company.

 

  

  

  

(iii)           Definitions.

 

	
  

	
·

	
“Restricted Period” shall mean the period of six (6) months immediately following the Effective Date, such time to be automatically extended by any time period in which I violate any of my ongoing obligations to the Company pursuant to Section 7(c) of this Agreement.

 

	
  

	
·

	
“Competitive Business” shall mean the business of the development, production, marketing, sale and/or servicing of rechargeable, lithium-ion batteries and/or battery systems for energy storage, working for any of the following companies:  A123 Systems, Compact Power, Inc., Dow Kokam, JCI-Saft, Altair Nanotechnologies, Valence Technology, Panasonic, Sony, Hitachi, NEC, Toshiba, GS Yuasa, AESC, Samsung, SB LiMotive, LG Chem, Delphi Hybrid and Electric Vehicle Products Business, Magna E-Cars Systems, Continental Powertrain Hybrid and Electric Vehicle Business Unit, SK Energy, Eagle Picher, Sakti3, or BYD.

 

	
  

	
·

	
“Company Customer” shall mean any individual or entity as to which, with or to whom, during my employment with the Company: (i) purchased any products or services from the Company; or (ii) any contract was entered into with the Company for the provision of any products or services.

 

8.           Violation of Agreement.  If any legal action or other proceeding is brought for the enforcement of this Agreement, the non-breaching party shall be able to recover  from the breaching party its reasonable attorney’s fees, court costs and all expenses (including, without limitation, all such fees, costs and expenses incident to appeals), incurred in that action or proceeding, in addition to any other relief to which such party or parties may be entitled.  In addition, in the event of a violation of the provisions of Paragraph 7(b) of this Agreement, it is understood that precise calculation of damages may be difficult, but that the Company will suffer significant harm in the event a violation occurs.  Consequently, not as a penalty, but as reasonable approximation of the actual harm incurred, the parties agree to liquidated damages of two thousand dollars ($2,000.00) per violation by me, in addition to any other remedies otherwise available in law or equity.  With respect to any violation of Paragraph 7(a) or 7(c) of this Agreement, I agree that it would be difficult to measure any damages caused to the Company which might result from any such violation, and that in any event money damages would be an inadequate remedy for any such breach.  Accordingly, I agree that if I breach Section 7(a) and/or 7(c) of this Agreement, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach, and the Company shall also be entitled to recover the reasonable attorneys’ fees it incurs in connection with any legal action in which the Company seeks to enforce my obligations in Section 7(a) and/or 7(c) of this Agreement.

 

  

  

  

9.           Severability.  I understand, and it is my intent, that in the event this Agreement is ever held to be invalid or unenforceable (in whole or in part) as to any particular type of claim or charge or as to any particular circumstances, it shall remain fully valid and enforceable as to all other claims, charges, and circumstances.

 

10.           Period to Consider Agreement and Expiration of Offer.  As required by the ADEA and the OWBPA, I understand that I have twenty-one (21) calendar days from the day that I receive this Agreement, not counting the day upon which I received it, to consider whether I wish to sign it.  If I sign this Agreement before the end of the twenty-one (21) calendar day period, it will be my personal and voluntary decision to do so.  I also understand that if I fail to deliver this Agreement to the Company within said period of time, it shall expire and be deemed withdrawn by the Company.

 

11.           Right to Revoke Agreement.  I understand that I may revoke this Agreement at any time within seven (7) calendar days after I sign it, not counting the day upon which I sign it. This Agreement will not become effective or enforceable unless and until the seven (7) calendar day revocation period has expired without my revoking it, i.e. on the eighth calendar day after I sign this Agreement.

 

12.           Procedure to Accept or Revoke.  To accept this Agreement, I must deliver the Agreement, after it has been signed and dated by me, to the Company, by hand or by mail, and it must be received by the Company within the twenty-one (21) calendar day period that I have to consider this Agreement.  To revoke my acceptance, I must deliver a written, signed statement that I revoke my acceptance to the Company by hand or by mail and any such notice of revocation must be received by the Company within seven (7) calendar days after I signed the Agreement.  All deliveries shall be made to the Company at the following address, marked “Personal and Confidential”: Nicholas Brunero, Vice President and General Counsel, Ener1, Inc., 1540 Broadway, Suite 25C, New York, NY 10036.  If I choose to deliver my acceptance or revocation notice by mail, it must be: (a) postmarked and received by the above-named individual at the Company within the applicable period stated above; (b) properly addressed to the Company at the address stated above; and (c) sent by certified mail, return receipt requested.

 

13.           Governing Law and Jurisdiction.  This Agreement shall be interpreted, enforced, and governed under the laws of Indiana, without regard to conflict of laws principles thereof. Moreover, while the parties do not contemplate any future disputes, I agree that any action or claim regarding this Agreement shall be brought and maintained exclusively in Indiana. If brought in state court, the action shall be filed in Marion County; if brought in federal court, the action shall be filed in the Southern District of Indiana. By signing this Agreement, I expressly consent to personal jurisdiction in Indiana. Both parties waive the right to a jury trial.  This Agreement constitutes the entire agreement between the parties on the subject matter hereof and supersedes any and all prior or contemporaneous agreements between the parties, except as expressly provided herein.

 

  

  

  

14.           My Representations.  I HAVE READ THIS AGREEMENT CAREFULLY, I HAVE HAD AN ADEQUATE OPPORTUNITY TO CONSULT AN ATTORNEY, AND I UNDERSTAND ALL OF ITS TERMS. IN AGREEING TO SIGN THIS AGREEMENT, I HAVE NOT RELIED ON ANY STATEMENTS OR EXPLANATIONS MADE BY THE COMPANY, EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT.  I ALSO UNDERSTAND AND AGREE THAT THIS AGREEMENT CONTAIN ALL OF THE AGREEMENTS BETWEEN THE COMPANY AND ME RELATING TO THE MATTERS INCLUDED HEREIN.  I ALSO AGREE THAT THIS AGREEMENT MAY BE EXECUTED IN ONE OR MORE COUNTERPARTS, ALL OF WHICH, TAKEN TOGETHER, SHALL CONSTITUTE ONE AND THE SAME AGREEMENT.

 

[signatures on following page]

  

  

  

	
Date: 4/8/11

	
Signature:

	
/s/ Richard L. Stanley

	  	  	
Richard L. Stanley

	  	  	  
	  	
Witness:

	
/s/ Anna Stanley

 

Date: 4/8/11

	  	
Agreed to by Ener1, Inc. on behalf of itself and all other persons and entities released herein:

	  	
By:

	
 /s/ Charles Gassenheimer

	  	  	  
	  	
Printed: Charles Gassenheimer

	  	  	  
	  	
Title: Chairman and Chief Executive Officer

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