Document:

exv10w59

Exhibit 10.59

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of April
___, 2011, by and among T3 Motion, Inc., a Delaware corporation (the “Company”), and each of the
signatories hereto (each an “Investor” and collectively, the “Investors”).

     WHEREAS, concurrently with the execution of this Agreement, the Company and the Investors are
entering into a Debenture Amendment and Conversion Agreement (the “Conversion Agreement”) pursuant
to which such Investors have agreed to convert certain amounts owed to them into units comprised of
common stock and warrants effective upon the consummation of the public offering contemplated by
the Company’s Registration Statement on Form S-1, File Number 333-171163 (the “Public Offering”);
and

     WHEREAS, it is a condition to the conversion contemplated by the Conversion Agreement that the
parties enter into this Agreement.

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the Company and each of the Purchasers agree as follows:

     1. Certain Definitions. Capitalized terms used and not otherwise defined herein that
are defined in the Conversion Agreement shall have the meanings given such terms in the Conversion
Agreement. As used in this Agreement, the following terms shall have the following meanings:

     “Advice” shall have the meaning set forth in Section 6(c).

     “Affiliate” means, with respect to any person, any other person which directly or indirectly
controls, is controlled by, or is under common control with, such person.

     “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City
are open for the general transaction of business.

     “Closing” has the meaning set forth in the Conversion Agreement.

     “Conversion Agreement” has the meaning set forth in the Preamble.

     “Conversion Shares” means the shares of the Company’s Common Stock issued pursuant to the
Conversion Agreement.

     “Commission” means the Securities and Exchange Commission.

     “Common Stock” means the common stock of the Company, par value $0.001 per share, and any
securities into which such shares of common stock may hereinafter be reclassified.

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

 

 

     “Effective Date” means the date that the Registration Statement filed pursuant to Section 2(a)
is first declared effective by the Commission.

     “Effectiveness Deadline” means, with respect to the Initial Registration Statement or the New
Registration Statement, the 120th calendar day following the Offering Date; provided,
however, that if the Company is notified by the Commission that the Initial Registration Statement
will not be reviewed or is no longer subject to further review and comments, the Effectiveness
Deadline as to such Registration Statement shall be the third (3rd) Business Day
following the date on which the Company is so notified if such date precedes the date otherwise
required above. With respect to any Remainder Registration Statement, the 90th calendar
day following the date that the Company is eligible to file such Remainder Registration Statement
pursuant to SEC Guidance (or, in the event the Commission reviews and has written comments to the
Remainder Registration Statement, the 120th calendar day following the date that the
Company is eligible to file such Remainder Registration Statement pursuant to SEC Guidance);
provided, however, that if the Company is notified by the Commission that the Remainder
Registration Statement will not be reviewed or is no longer subject to further review and comments,
the Effectiveness Deadline as to such Remainder Registration Statement shall be the third
(3rd) Business Day following the date on which the Company is so notified if such date
precedes the dates otherwise required above. Notwithstanding the foregoing; if the Effectiveness
Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the
Effectiveness Deadline shall be extended to the next Business Day on which the Commission is open
for business.

     “Effectiveness Period” has the meaning set forth in Section 2(b).

     “Event” has the meaning set forth in Section 2(c).

     “Event Date” has the meaning set forth in Section 2(c).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “Filing Deadline” means, with respect to the Initial Registration Statement required to be
filed pursuant to Section 2(a), the fifth Business Day following the Offering Date and with respect
to any Remainder Registration Statement, the 20th Business Day following the date that the Company
is eligible to file such Remainder Registration Statement pursuant to SEC Guidance.

     “Holder” or “Holders” means the holder or holders, as the case may be, from time to time of
Registrable Securities.

     “Indemnified Party” has the meaning set forth in Section 5(c).

     “Indemnifying Party” has the meaning set forth in Section 5(c).

     “Initial Registration Statement” means the initial Registration Statement filed pursuant to
Section 2(a) of this Agreement.

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     “Liquidated Damages” has the meaning set forth in Section 2(c).

     “Losses” has the meaning set forth in Section 5(a).

     “New Registration Statement” has the meaning set forth in Section 2(a).

     “Offering Date” means the date on which the securities sold in the Public Offering commence
trading.

     “Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.

     “Proceeding” means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

     “Prospectus” means the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a prospectus filed
as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by a Registration Statement,
and all other amendments and supplements to the Prospectus, including post-effective amendments,
and all material incorporated by reference or deemed to be incorporated by reference in such
Prospectus.

     “Public Offering” has the meaning set forth in the Preamble.

     “Registrable Securities” means all of (i) the Conversion Shares, (ii) the Warrants, (iii) the
Warrant Shares, and (iv) any securities issued or issuable upon any stock split, dividend or other
distribution, recapitalization or similar event with respect to the foregoing, provided, that the
Holder has completed and delivered to the Company a Selling Stockholder Questionnaire; and
provided, further, that Conversion Shares, Warrants and Warrant Shares shall cease to be
Registrable Securities upon the earliest to occur of the following: (A) a sale pursuant to an
effective Registration Statement or Rule 144 under the Securities Act (in which case, only such
security sold shall cease to be a Registrable Security); or (B) becoming eligible for sale without
the requirement for the Company to be in compliance with the current public information required
under Rule 144 and without volume or manner of sale restrictions by Holders who are not Affiliates
of the Company.

     “Registration Statements” means any one or more registration statements of the Company filed
under the Securities Act that covers the resale of any of the Registrable Securities pursuant to
the provisions of this Agreement (including without limitation the Initial Registration Statement,
the New Registration Statement and any Remainder Registration Statements), amendments and
supplements to such Registration Statements, including post-effective amendments, all exhibits and
all material incorporated by reference or deemed to be incorporated by reference in such
Registration Statements.

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     “Remainder Registration Statement” has the meaning set forth in Section 2(a).

     “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

     “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

     “Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

     “SEC Guidance” means (i) any publicly-available written or oral guidance, comments,
requirements or requests of the Commission staff and (ii) the Securities Act.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     “Selling Stockholder Questionnaire” means a questionnaire in the form attached as Annex
B hereto, or such other form of questionnaire as may reasonably be adopted by the Company from
time to time.

     “Warrants” means the Class H Warrants and the Class I Warrants issued pursuant to the
Conversion Agreement.

     “Warrant Shares” means the shares of Common Stock issued or issuable upon exercise of the
Warrants.

     2. Registration.

          (a) On or prior to the Filing Deadline, the Company shall prepare and file with the Commission
a Registration Statement covering the resale of all of the Registrable Securities for an offering
to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available for offers
and sales of the Registrable Securities, by such other means of distribution of Registrable
Securities as the Holders holding a majority of the Registrable Securities may reasonably specify
(the “Initial Registration Statement”). The Initial Registration Statement shall be on Form S-3
(except if the Company is then ineligible to register for resale of the Registrable Securities on
Form S-3, in which case such registration shall be on such other form available to register for
resale of the Registrable Securities as a secondary offering) subject to the provisions of Section
2(f) and shall contain (except if otherwise required pursuant to written comments received from the
Commission upon a review of such Registration Statement) the “Plan of Distribution” section
attached hereto as Annex A. Notwithstanding the registration obligations set forth in this
Section 2, in the event the Commission informs the Company that all of the Registrable Securities
cannot, as a result of the application of Rule 415, be registered for resale as a secondary
offering on a single registration statement, the Company agrees to promptly (i) inform each of the
Holders thereof and use its commercially reasonable efforts to file

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amendments to the Initial Registration Statement as required by the Commission and/or (ii)
withdraw the Initial Registration Statement and file a new registration statement (a “New
Registration Statement”), in either case covering the maximum number of Registrable Securities
permitted to be registered by the Commission, on Form S-3 or such other form available to register
for resale the Registrable Securities as a secondary offering; provided, however, that prior to
filing such amendment or New Registration Statement, the Company shall be obligated to use its
commercially reasonable efforts to advocate with the Commission for the registration of all of the
Registrable Securities in accordance with the SEC Guidance, including without limitation, the
Manual of Publicly Available Telephone Interpretations D.29. Notwithstanding any other provision of
this Agreement, if any SEC Guidance sets forth a limitation of the number of Registrable Securities
permitted to be registered on a particular Registration Statement as a secondary offering (and
notwithstanding that the Company used diligent efforts to advocate with the Commission for the
registration of all or a greater number of Registrable Securities), unless otherwise directed in
writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be
registered on such Registration Statement shall be reduced first by the Conversion Shares and
second by the Warrants and Warrant Shares (it being understood that no Warrants will be registered
unless the underlying Warrant Shares are also registered). In the event the Company is required to
amend the Initial Registration Statement or file a New Registration Statement pursuant to SEC
Guidance, as the case may be, under clauses (i) or (ii) above, the Company will use its
commercially reasonable efforts to file with the Commission, as promptly as allowed by Commission
or SEC Guidance provided to the Company or to registrants of securities in general, one or more
registration statements on Form S-3 or such other form available to register for resale those
Registrable Securities that were not registered for resale on the Initial Registration Statement,
as amended, or the New Registration Statement (the “Remainder Registration Statements”).

          (b) The Company shall use its commercially reasonable efforts to cause each Registration
Statement to be declared effective by the Commission as soon as practicable but in no event later
than the Effectiveness Deadline for each of the Initial Registration Statement, any New
Registration Statement, as required, and any Remainder Registration Statements. The Company shall
use its commercially reasonable efforts to keep the Registration Statements continuously effective
under the Securities Act until the earlier of (i) such time as all of the Registrable Securities
covered by such Registration Statement have been publicly sold or are otherwise no longer held by
the Holders or (ii) the date that all Registrable Securities covered by such Registration Statement
may be sold by non-affiliates under Rule 144, without the requirement for the Company to be in
compliance with the current public information requirements under Rule 144 and without volume or
manner of sale restrictions, as determined by counsel to the Company pursuant to a written opinion
letter to such effect, addressed and reasonably acceptable to the Company’s transfer agent and the
effected Holders (the “Effectiveness Period”). The Company shall promptly notify the Holders via
facsimile or electronic mail of a “.pdf” format data file of the effectiveness of a Registration
Statement within one (1) Business Day of the Effective Date. The Company shall, by 9:30 a.m. New
York City time on the first Business Day after the Effective Date, file a final Prospectus with the
Commission, as required by Rule 424(b).

          (c) If: (i) any Registration Statement is not filed with the Commission on or prior to its
respective Filing Deadline, including the Initial Registration Statement, a New

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Registration Statement or a Remainder Registration Statement, (ii) any Registration Statement,
as applicable, is not declared effective by the Commission (or otherwise does not become effective)
for any reason on or prior to the Effectiveness Deadline or (iii) after its Effective Date, (A)
such Registration Statement ceases for any reason (including without limitation by reason of a stop
order, or the Company’s failure to update the Registration Statement) except to update the
Registration Statement for which subsection (B) shall apply, to remain continuously effective as to
all Registrable Securities for which it is required to be effective or (B) the Holders are not
permitted to utilize the Prospectus therein to resell such Registrable Securities, in the case of
(A) and (B), for more than an aggregate of 30 Business Days (which need not be consecutive) during
any 12 month period (other than during an Allowable Grace Period (as defined in Section 2(e) of
this Agreement)), (iv) a Grace Period (as defined in Section 2(e) of this Agreement) exceeds the
length of an Allowable Grace Period, or (v) after the date six months following the Offering Date,
the Company fails to file with the SEC any required reports under Section 13 or 15(d) of the 1934
Act such that it is not in compliance with Rule 144(c)(1) as a result of which the Holders who are
not affiliates are unable to sell Registrable Securities without restriction under Rule 144 (or any
successor thereto) (any such failure or breach in clauses (i) through (v) above being referred to
as an “Event,” and, for purposes of clauses (i), (ii) or (v), the date on which such Event occurs,
or for purposes of clause (iii), the date on which such 30 Business Day period is exceeded, or for
purposes of clause (iv) the date on which such Allowable Grace Period is exceeded, being referred
to as an “Event Date”), then in addition to any other rights the Holders may have hereunder or
under applicable law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the applicable Event is
cured, the Company shall pay to each Investor an amount in cash, as liquidated damages and not as a
penalty (“Liquidated Damages”), equal toone percent (1.0%) of the amount of debt converted by such
Holder pursuant to the Conversion Agreement for any Registrable Securities held by such Holder on
the Event Date. The parties agree that (1) notwithstanding anything to the contrary herein or in
the Conversion Agreement, no Liquidated Damages shall be payable with respect to any period after
the expiration of the Effectiveness Period (it being understood that this sentence shall not
relieve the Company of any Liquidated Damages accruing prior to the Effectiveness Period), and in
no event shall the aggregate amount of Liquidated Damages payable to a Holder exceed, in the
aggregate, twelve percent (12%) of the debt converted by such Holder pursuant to the Conversion
Agreement and (2) in no event shall the Company be liable in any 30-day period for Liquidated
Damages under this Agreement in excess of 1.0% of the aggregate debt converted by the Investors
pursuant to the Conversion Agreement. If the Company fails to pay any Liquidated Damages pursuant
to this Section 2(c) in full within five (5) Business Days after the date payable, the Company will
pay interest thereon at a rate of 1.0% per month (or such lesser maximum amount that is permitted
to be paid by applicable law) to the Holder, accruing daily from the date such Liquidated Damages
are due until such amounts, plus all such interest thereon, are paid in full. The Liquidated
Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a
month prior to the cure of an Event, except in the case of the first Event Date. The Company shall
not be liable for Liquidated Damages under this Agreement as to any Registrable Securities which
are not permitted by the Commission to be included in a Registration Statement due solely to SEC
Guidance from the time that it is determined that such Registrable Securities are not permitted to
be registered until such time as the provisions of this Agreement as to the Remainder Registration
Statements required to be filed hereunder are triggered, in which case the provisions

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of this Section 2(c) shall once again apply. In such case, the Liquidated Damages shall be
calculated to only apply to the percentage of Registrable Securities which are permitted in
accordance with SEC Guidance to be included in such Registration Statement. The Company may
require, from time to time, information by a Holder that is necessary to complete the Registration
Statement in accordance with the requirements of the Securities Act. In the event of the failure
by such Holder to comply with the Company’s request within fifteen (15) days from the date of such
request, the Company shall be permitted to exclude such Holder from a Registration Statement,
without being subject to the payment of Liquidated Damages to such Holder. At such time that such
Holder complies with the Company’s request the Company shall use its best efforts to include such
Holder on the Registration Statement.

          (d) Each Holder agrees to furnish to the Company a completed Selling Stockholder Questionnaire
not more than three (3) Business Days following the date of this Agreement. Each Holder
acknowledges and agrees that the information in the Selling Stockholder Questionnaire or request
for further information as described in this Section 2(d) will be used by the Company in the
preparation of the Registration Statement and hereby consents to the inclusion of such information
in the Registration Statement.

          (e) Notwithstanding anything to the contrary herein, at any time after the Registration
Statement has been declared effective by the Commission, the Company may delay the disclosure of
material non-public information concerning the Company if the disclosure of such information at the
time is not, in the good faith judgment of the Company, in the best interests of the Company (a
“Grace Period”); provided, however, the Company shall promptly (i) notify the Holders in writing of
the existence of material non-public information giving rise to a Grace Period (provided that the
Company shall not disclose the content of such material non-public information to the Holders) or
the need to file a post-effective amendment, as applicable, and the date on which such Grace Period
will begin, and (ii) notify the Holders in writing of the date on which the Grace Period ends;
provided, further, that no single Grace Period shall exceed thirty (30) consecutive days, and
during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not
exceed an aggregate of sixty (60) days (each Grace Period complying with this provision being an
“Allowable Grace Period”). In the event the Company does disclose the content of such material
non-public information that is the subject of subpart (i) above to any Holder without its consent,
the Company shall make public disclosure of such material nonpublic information within two (2)
Business Days of such disclosure and no Grace Period shall apply. For purposes of determining the
length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the
Holders receive the notice referred to in clause (i) above and shall end on and include the later
of the date the Holders receive the notice referred to in clause (ii) above and the date referred
to in such notice; provided, however, that no Grace Period shall be longer than an Allowable Grace
Period. Notwithstanding anything to the contrary, the Company shall cause the Transfer Agent to
deliver unlegended securities to a transferee of a Holder in connection with any sale of
Registrable Securities with respect to which a Holder has entered into a contract for sale prior to
the Holder’s receipt of the notice of a Grace Period and for which the Holder has not yet settled.

          (f) In the event that Form S-3 is not available for the registration of the resale of
Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form reasonably acceptable to the Holders and (ii) undertake to

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register the Registrable Securities on Form S-3 promptly after such form is available and any
Registration Statement under subsection (i) above is no longer effective, provided that the Company
shall maintain the effectiveness of the Registration Statement then in effect until such time as a
Registration Statement on Form S-3 covering the Registrable Securities has been declared effective
by the Commission.

     3. Registration Procedures.

          In connection with the Company’s registration obligations hereunder, the Company shall:

          (a) Not less than three (3) Business Days prior to the filing of a Registration Statement and
not less than one (1) Business Day prior to the filing of any related Prospectus or any amendment
or supplement thereto (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K and any similar or successor reports), the Company shall, furnish to
the Holder copies of such Registration Statement, Prospectus or amendment or supplement thereto, as
proposed to be filed, which documents will be subject to the review of such Holder (it being
acknowledged and agreed that if a Holder does not object to or comment on the aforementioned
documents within such three (3) Business Day or one (1) Business Day period, as the case may be,
then the Holder shall be deemed to have consented to and approved the use of such documents). The
Company shall not file any Registration Statement or amendment or supplement thereto in a form to
which a Holder reasonably objects in good faith, provided that, the Company is notified of such
objection in writing within the three (3) Business Day or one (1) Business Day period described
above, as applicable.

          (b) (i) Prepare and file with the Commission such amendments (including post-effective
amendments) and supplements, to each Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep such Registration Statement continuously effective as to the
applicable Registrable Securities for its Effectiveness Period (except during an Allowable Grace
Period); (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus
supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be
filed pursuant to Rule 424 (except during an Allowable Grace Period); (iii) respond as promptly as
reasonably practicable to any comments received from the Commission with respect to each
Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide
the Holders true and complete copies of all correspondence from and to the Commission relating to
such Registration Statement that pertains to the Holders as “Selling Stockholders” but not any
comments that would result in the disclosure to the Holders of material and non-public information
concerning the Company; and (iv) comply with the provisions of the Securities Act and the Exchange
Act with respect to the disposition of all Registrable Securities covered by a Registration
Statement until such time as all of such Registrable Securities shall have been disposed of
(subject to the terms of this Agreement) in accordance with the intended methods of disposition by
the Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus
as so supplemented; provided, however, that each Investor shall be responsible for the delivery of
the Prospectus to the Persons to whom such Investor sells any of the Registrable Securities
(including in accordance with Rule 172 under the Securities Act), and each Investor agrees to
dispose of Registrable Securities in compliance with the plan of distribution described in the
Registration

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Statement and otherwise in compliance with applicable federal and state securities laws. In
the case of amendments and supplements to a Registration Statement which are required to be filed
pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company
filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Exchange Act,
the Company shall have incorporated such report by reference into such Registration Statement, if
applicable, or shall file such amendments or supplements with the Commission on the same day on
which the Exchange Act report which created the requirement for the Company to amend or supplement
such Registration Statement was filed.

          (c) Notify the Holders (which notice shall, pursuant to clauses (iii) through (v) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have
been made) as promptly as reasonably practicable (and, in the case of (i)(A) below, not less than
two (2) Business Days prior to such filing, in the case of (iii) and (iv) below, not more than one
(1) Business Day after such issuance or receipt, and in the case of (v) below, not more than one
(1) Business Day after the occurrence or existence of such development) and (if requested by any
such Person) confirm such notice in writing no later than one (1) Business Day following the day
(i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration
Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will
be a “review” of such Registration Statement and whenever the Commission comments in writing on any
Registration Statement (in which case the Company shall provide to each of the Holders true and
complete copies of all comments that pertain to the Holders as a “Selling Stockholder” or to the
“Plan of Distribution” and all written responses thereto, but not information that the Company
believes would constitute material and non-public information); and (C) with respect to each
Registration Statement or any post-effective amendment, when the same has become effective; (ii) of
any request by the Commission or any other Federal or state governmental authority for amendments
or supplements to a Registration Statement or Prospectus or for additional information that
pertains to the Holders as “Selling Stockholders” or the “Plan of Distribution”; (iii) of the
issuance by the Commission or any other federal or state governmental authority of any stop order
suspending the effectiveness of a Registration Statement covering any or all of the Registrable
Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation
or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or
passage of time that makes the financial statements included in a Registration Statement ineligible
for inclusion therein or any statement made in such Registration Statement or Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue in any material
respect or that requires any revisions to such Registration Statement, Prospectus or other
documents so that, in the case of such Registration Statement or the Prospectus, as the case may
be, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein (in the case of any
Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which
they were made), not misleading.

          (d) Use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of a Registration Statement,

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or (ii) any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction, as soon as practicable.

          (e) If requested by a Holder, furnish to such Holder, without charge, at least one conformed
copy of each Registration Statement and each amendment thereto and all exhibits to the extent
requested by such Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission; provided, that the Company shall
have no obligation to provide any document pursuant to this clause that is available on the
Commission’s EDGAR system.

          (f) Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable
efforts to register or qualify or cooperate with the selling Holders in connection with the
registration or qualification (or exemption from the registration or qualification) of such
Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such
jurisdictions within the United States as any Holder reasonably requests in writing, to keep each
registration or qualification (or exemption therefrom) effective during the Effectiveness Period
and to do any and all other acts or things reasonably necessary to enable the disposition in such
jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that
the Company shall not be required to qualify generally to do business in any jurisdiction where it
is not then so qualified; subject the Company to any material tax in any such jurisdiction where it
is not then so subject; or file a general consent to service of process in any such jurisdiction.

          (g) If requested by the Holders, cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to be delivered to a
transferee pursuant to the Registration Statement, which certificates shall be free, to the extent
permitted by the Conversion Agreement and under law, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any such Holders
may reasonably request.

          (h) Following the occurrence of any event contemplated by Section 3(c)(iii)-(v), as promptly
as reasonably practicable (taking into account the Company’s good faith assessment of any adverse
consequences to the Company and its stockholders of the premature disclosure of such event),
prepare a supplement or amendment, including a post-effective amendment, to the affected
Registration Statements or a supplement to the related Prospectus or any document incorporated or
deemed to be incorporated therein by reference, and file any other required document so that, as
thereafter delivered, no Registration Statement nor any Prospectus will contain 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 (in the case of any Prospectus, form of prospectus or supplement
thereto, in light of the circumstances under which they were made), not misleading.

          (i) The Company may require each selling Holder to furnish to the Company a certified
statement as to (i) the number of shares of Common Stock beneficially owned by such Holder and any
Affiliate thereof, (ii) any Financial Industry Regulatory Authority (“FINRA”) affiliations, (iii)
any natural persons who have the power to vote or dispose of the Common Stock and (iv) any other
information as may be requested by the Commission, FINRA or any

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state securities commission. During any periods that the Company is unable to meet its
obligations hereunder with respect to the registration of Registrable Securities because any Holder
fails to furnish such information within five (5) Business Days of the Company’s request, (i) any
Liquidated Damages that are accruing at such time as to such Holder shall be tolled only with
respect to that Holder; and (ii) any Event that may otherwise occur because of such delay shall be
suspended as to such Holder only, until such information is delivered to the Company; provided,
further , that Holder shall reimburse the Company for any and all Liquidated Damages that the
Company owes the other Holders as a result of its failure to provide such information.

          (j) Not permit any securities other than Registrable Securities to be included on any
Registration Statement other than securities underlying the underwriters’ Unit Purchase Option
dated as of the closing of the Public Offering, if applicable.

     4. Registration Expenses. All fees and expenses incident to the Company’s performance
of or compliance with its obligations under this Agreement (excluding any underwriting discounts
and selling commissions and all legal fees and expenses of legal counsel for any Holder) shall be
borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration
Statement. The fees and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with any securities exchange on which the Common
Stock is then listed for trading, and (B) with respect to compliance with applicable state
securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for
the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities
and determination of the eligibility of the Registrable Securities for investment under the laws of
such jurisdictions as requested by the Holders)), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities and of printing
prospectuses if the printing of prospectuses is reasonably requested by the Holders of a majority
of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone
and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act
liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all
other Persons retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the transactions contemplated by
this Agreement (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual audit and the fees and
expenses incurred in connection with the listing of the Registrable Securities on any securities
exchange as required hereunder. In no event shall the Company be responsible for any underwriting,
broker or similar fees or commissions of any Holder or, except to the extent provided for in the
Conversion Agreement, any legal fees or other costs of the Holders.

     5. Indemnification.

          (a) Indemnification by the Company. The Company shall, notwithstanding any
termination of this Agreement, indemnify, defend and hold harmless each Holder, the officers,
directors, agents, partners, members, managers, stockholders, Affiliates and employees of each of
them, each Person who controls any such Holder (within the meaning of Section 15 of

11

 

the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners,
members, managers, stockholders, agents and employees of each such controlling Person, to the
fullest extent permitted by applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, reasonable costs of preparation and
investigation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred,
that arise out of or are based upon any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to
any omission or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made) not misleading,
except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue
statements, omissions or alleged omissions are based solely upon information regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein, or to the extent that
such information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and approved by such Holder expressly for use in the
Registration Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto (it being understood that each Holder has approved Annex A hereto for
this purpose), (B) in the case of an occurrence of an event of the type specified in Section
3(c)(iii)-(v), related to the use by a Holder of an outdated or defective Prospectus after the
Company has notified such Holder in writing that the Prospectus is outdated or defective and prior
to the receipt by such Holder of the Advice contemplated and defined in Section 6(c) below or (C)
any such Losses arise out of the Holder’s (or any other indemnified Person’s) failure to send or
give a copy of the Prospectus or supplement (as then amended or supplemented), if required, to the
Persons asserting an untrue statement or alleged untrue statement or alleged untrue statement or
omission or alleged omission at or prior to the written confirmation of the sale of Registrable
Securities to such Person if such statement or omission was corrected in such Prospectus or
supplement. The Company shall notify the Holders promptly of the institution, threat or assertion
of any Proceeding arising from or in connection with the transactions contemplated by this
Agreement of which the Company is aware. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of an Indemnified Party (as defined in Section
5(c)) and shall survive the transfer of the Registrable Securities by the Holders.

          (b) Indemnification by Holders. Each Holder shall, severally and not jointly,
indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising
out of or are based upon any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus, or any form of prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading (i) to the extent, but
only to the extent, that such untrue statements or omissions are based solely upon information
regarding such Holder furnished in writing to the Company by such Holder expressly for use therein
or (ii) to the extent, but only to the extent, that such

12

 

information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and approved by such Holder expressly for use in a
Registration Statement (it being understood that the Holder has approved Annex A hereto for
this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto
or (iii) in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(v),
to the extent, but only to the extent, related to the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section
6(c). In no event shall the liability of any selling Holder hereunder be greater in amount than
the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable
Securities giving rise to such indemnification obligation.

          (c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all reasonable fees and expenses incurred in connection with defense thereof; provided,
that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying
Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that it shall be finally determined by a court of competent jurisdiction (which determination is
not subject to appeal or further review) that such failure shall have materially and adversely
prejudiced the Indemnifying Party.

          An Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest exists if
the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which
case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ
separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have
the right to assume the defense thereof and such counsel shall be at the expense of the
Indemnifying Party); provided, that the Indemnifying Party shall not be liable for the fees and
expenses of more than one separate firm of attorneys at any time for all Indemnified Parties. The
Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without
its written consent, which consent shall not be unreasonably withheld, delayed or conditioned. No
Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from all liability on
claims that are the subject matter of such Proceeding.

          Subject to the terms of this Agreement, all fees and expenses of the Indemnified Party
(including reasonable fees and expenses to the extent incurred in connection with

13

 

investigating or preparing to defend such Proceeding in a manner not inconsistent with this
Section 5(c)) shall be paid to the Indemnified Party, as incurred, within twenty (20) Business Days
of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall
promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to
such actions for which such Indemnified Party is finally judicially determined to not be entitled
to indemnification hereunder). The failure to deliver written notice to the Indemnifying Party
within a reasonable time of the commencement of any such action shall not relieve such Indemnifying
Party of any liability to the Indemnified Party under this Section 5, except to the extent that the
Indemnifying Party is materially and adversely prejudiced in its ability to defend such action.

          (d) Contribution. If a claim for indemnification under Section 5(a) or 5(b) is
unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any
Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in
such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that resulted in such
Losses as well as any other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement of a material fact
or omission or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such action,
statement or omission. The amount paid or payable by a party as a result of any Losses shall be
deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section 5(d) was available to such party in accordance with
its terms.

          The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 5(d) were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually
received by such Holder from the sale of the Registrable Securities subject to the Proceeding
exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

          The indemnity and contribution agreements contained in this Section 5 are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties and are not in
diminution or limitation of the indemnification provisions under the Conversion Agreement.

14

 

     6. Miscellaneous.

          (a) Remedies. In the event of a breach by the Company or by a Holder of any of their
obligations under this Agreement, each Holder or the Company, as the case may be, in addition to
being entitled to exercise all rights granted by law and under this Agreement, including recovery
of damages, will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby
further agrees that, in the event of any action for specific performance in respect of such breach,
it shall waive the defense that a remedy at law would be adequate.

          (b) Compliance. Each Holder covenants and agrees that it will comply with the
prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption
therefrom is available) in connection with sales of Registrable Securities pursuant to the
Registration Statement and shall sell the Registrable Securities only in accordance with a method
of distribution described in the Registration Statement.

          (c) Discontinued Disposition. By its acquisition of Registrable Securities, each
Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the
kind described in Section 3(c)(iii)-(v), such Holder will forthwith discontinue disposition of such
Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or
amended) may be resumed. The Company may provide appropriate stop orders to enforce the provisions
of this paragraph.

          (d) Entire Agreement; Amendments and Waivers. This Agreement constitutes the full and
entire understanding and agreement between the parties with regard to the subjects hereof. The
provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, or waived unless the same shall be in writing and signed by the Company
and Holders holding a majority of the then outstanding Registrable Securities, provided that any
party may give a waiver as to itself. Notwithstanding the foregoing, a waiver or consent to depart
from the provisions hereof with respect to a matter that relates exclusively to the rights of
Holders and that does not directly or indirectly affect the rights of other Holders may be given by
Holders of all of the Registrable Securities to which such waiver or consent relates; provided,
however, that the provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding sentence.

          (e) Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be delivered as set forth in the Conversion Agreement.

          (f) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and shall inure to the
benefit of each Holder. Nothing in this Agreement, express or implied, is intended to confer upon
any party other than the parties hereto or their respective successors and assigns any rights,

15

 

remedies, obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement. The Company may not assign its rights (except by merger or
in connection with another entity acquiring all or substantially all of the Company’s assets) or
obligations hereunder without the prior written consent of Holders of a majority of the then
outstanding Registrable Securities.

          (g) Execution and Counterparts. This Agreement may be executed in two or more
counterparts, each of which when so executed shall be deemed to be an original and, all of which
taken together shall constitute one and the same Agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf” signature were the original
thereof.

          (h) Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be determined in accordance with the provisions of the
Conversion Agreement.

          (i) Cumulative Remedies. The remedies provided herein are cumulative and not
exclusive of any other remedies provided by law.

          (j) Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their good faith reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties
that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

          (k) Headings. The headings in this Agreement are for convenience only and shall not
limit or otherwise affect the meaning hereof.

          (l) Termination. This Agreement shall terminate immediately and have no further force
or effect, if the Public Offering is not closed, and the Conversion Agreement terminates without
the Debenture being converted into Units.

16

 

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

	 	 	 	 	 
	 	T3 MOTION, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGES OF HOLDERS TO FOLLOW]

17

 

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

	 	 	 	 	 	 	 

	 	 	NAME OF INVESTOR	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	AUTHORIZED SIGNATORY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ADDRESS FOR NOTICE	 	 
	 
	 	 	 	 	 	 
	 	 	c/o: 
	 	 
	 
	 	 	 	 	 	 
	 	 	Street: 
	 	 
	 
	 	 	 	 	 	 
	 	 	City/State/Zip: 
	 	 
	 
	 	 	 	 	 	 
	 	 	Attention: 
	 	 
	 
	 	 	 	 	 	 
	 	 	Tel: 
	 	 
	 
	 	 	 	 	 	 
	 	 	Fax: 
	 	 
	 
	 	 	 	 	 	 
	 	 	Email: 
	 	 

18

 

Annex A

PLAN OF DISTRIBUTION

     We are registering the shares of Common Stock, Class H Warrants and Class I Warrants issued to
the selling stockholders and issuable upon exercise of such warrants issued to the selling
stockholders (collectively, the “Securities”) to permit the resale of the Securities by the holders
from time to time after the date of this prospectus. We are required to pay certain fees and
expenses that we incur incident to the registration of the Securities. As used in this prospectus,
“selling stockholders” includes the selling stockholders named in the table above and pledgees,
donees, transferees or other successors-in-interest selling Securities received from a named
selling stockholder as a gift, partnership distribution or other non-sale-related transfer after
the date of this prospectus. The selling stockholders may, from time to time, sell any or all of
their Securities on any stock exchange, market or trading facility on which the Securities are
traded or in private transactions. These sales may be at fixed or negotiated prices. The selling
stockholders will act independently of us in making decisions with respect to the timing, manner
and size of each sale. A selling stockholder may use any one or more of the following methods when
selling Securities:

     • ordinary brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

     • block trades in which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the transaction;

     • purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

     • an exchange distribution in accordance with the rules of the applicable exchange;

     • privately negotiated transactions;

     • settlement of short sales entered into after the effective date of the registration
statement of which this prospectus is a part;

     • broker-dealers may agree with the selling stockholders to sell a specified number of such
Securities at a stipulated price per security;

     • a combination of any such methods of sale;

     • through the writing or settlement of options or other hedging transactions, whether through
an options exchange or otherwise; or

     • any other method permitted pursuant to applicable law.

     Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from the selling

19

 

stockholders (or, if any broker-dealer acts as agent for the purchaser of Securities, from the
purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this
prospectus, in the case of an agency transaction not in excess of a customary brokerage commission
in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown
in compliance with FINRA IM-2440.

     In connection with the sale of the Securities or interests therein, the selling stockholders
may enter into hedging transactions with broker-dealers or other financial institutions, which may
in turn engage in short sales of the common stock in the course of hedging the positions they
assume. The selling stockholders may also sell shares of the common stock short and deliver these
securities to close out their short positions, or loan or pledge the common stock to broker-dealers
that in turn may sell these securities. The selling stockholders may also enter into option or
other transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other financial
institution of Securities offered by this prospectus, which Securities such broker-dealer or other
financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect
such transaction).

     The selling stockholders and any broker dealers or agents that are involved in selling the
Securities may be deemed to be “underwriters” within the meaning of the Securities Act in
connection with such sales. In such event, any commissions received by such broker dealers or
agents and any profit on the resale of the Securities purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act. Each selling stockholder has
informed the us that it does not have any written or oral agreement or understanding, directly or
indirectly, with any person to distribute the Securities. In no event shall any broker-dealer
receive fees, commissions and markups which, in the aggregate, would exceed eight percent (8.0%).

     Because selling stockholders may be deemed to be “underwriters” within the meaning of the
Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act.
In addition, any Securities covered by this prospectus which qualify for sale pursuant to Rule 144
under the Securities Act may be sold under Rule 144 rather than under this prospectus. There is no
underwriter or coordinating broker acting in connection with the proposed sale of the resale
Securities by the selling stockholders.

     The Securities will be sold only through registered or licensed brokers or dealers if required
under applicable state securities laws. In addition, in certain states, the resale Securities may
not be sold unless they have been registered or qualified for sale in the applicable state or an
exemption from the registration or qualification requirement is available and is complied with.

     Under applicable rules and regulations under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), any person engaged in the distribution of the resale Securities may not
simultaneously engage in market making activities with respect to the Securities for the applicable
restricted period, as defined in Regulation M, prior to the commencement of the distribution. In
addition, the selling stockholders will be subject to applicable provisions of the Exchange Act and
the rules and regulations thereunder, including Regulation M, which may limit the timing of
purchases and sales of Securities by the selling stockholders or any other

20

 

person. We will make copies of this prospectus available to the selling stockholders and have
informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the
time of the sale (including by compliance with Rule 172 under the Securities Act).

     We have agreed to indemnify the selling stockholders against certain losses, claims, damages
and liabilities, including liabilities under the Securities Act.

21

 

Annex B

T3 MOTION, INC.

SELLING STOCKHOLDER NOTICE AND QUESTIONNAIRE

     The undersigned holder of securities of T3 Motion, Inc., a Delaware corporation (the
“Company”), issued pursuant to a certain Debt Conversion Agreement by and among the Company and the
Investor signatories thereto, dated as of April __, 2011 (the “Conversion Agreement”), understands
that the Company intends to file with the Securities and Exchange Commission a registration
statement on Form S-3 (the “Resale Registration Statement”) for the registration and the resale
under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable
Securities in accordance with the terms of a certain Registration Rights Agreement by and among the
Company and the Investor signatories thereto, dated as of April __, 2011 (the “Agreement”). All
capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the
Agreement.

     In order to sell or otherwise dispose of any Registrable Securities pursuant to the Resale
Registration Statement, a holder of Registrable Securities generally will be required to be named
as a selling stockholder in the related prospectus or a supplement thereto (as so supplemented, the
“Prospectus”), deliver the Prospectus to purchasers of Registrable Securities (including pursuant
to Rule 172 under the Securities Act) and be bound by the provisions of the Agreement (including
certain indemnification provisions, as described below). Holders must complete and deliver this
Notice and Questionnaire in order to be named as selling stockholders in the Prospectus.

     Certain legal consequences arise from being named as a selling stockholder in the Resale
Registration Statement and the Prospectus. Holders of Registrable Securities are advised to
consult their own securities law counsel regarding the consequences of being named or not named as
a selling stockholder in the Resale Registration Statement and the Prospectus.

NOTICE

     The undersigned holder (the “Selling Stockholder”) of Registrable Securities hereby gives
notice to the Company of its intention to sell or otherwise dispose of Registrable Securities owned
by it and listed below in Item (3), unless otherwise specified in Item (3), pursuant to the Resale
Registration Statement. The undersigned, by signing and returning this Notice and Questionnaire,
understands and agrees that it will be bound by the terms and conditions of this Notice and
Questionnaire and the Agreement.

     The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete:

22

 

QUESTIONNAIRE

	1.	 	Name.

	 	(a)	 	Full Legal Name of Selling Stockholder:
	 
	 	 	 	 

	 
	 	(b)	 	Full Legal Name of Registered Holder (if not the same as (a) above) through
which Registrable Securities Listed in Item 3 below are held:
	 
	 	 	 	 

	 
	 	(c)	 	Full Legal Name of Natural Control Person (which means a natural person who
directly or indirectly alone or with others has power to vote or dispose of the
securities covered by the questionnaire):
	 
	 	 	 	 

	2.	 	Address for Notices to Selling Stockholder:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

Telephone:
 

Fax:
 

Contact Person:
 

E-mail address of Contact Person:
 

3. Beneficial Ownership of Registrable Securities Issuable Pursuant to the Conversion Agreement:

	 	(a)	 	Type and Number of Registrable Securities beneficially owned and to be issued
pursuant to the Conversion Agreement:

	 	 	 

	 

	 	shares of common stock
	 
	 

	 	Class H warrants
	 
	 

	 	Class I warrants
	 
	 

	 	 shares of common stock underlying the warrants (the “Warrant
Shares”.

	 	(b)	 	Number of shares of Registrable Securities issuable pursuant to the Conversion
Agreement to be registered pursuant to this Notice for resale:

	 	 	 

	 

	 	shares of common stock
	 
	 

	 	Class H warrants
	 
	 

	 	Class I warrants
	 

23

 

	 	 	 

	 	 	 
	 

	 	            
         Warrant Shares

	4.	 	Broker-Dealer Status:

	 	(a)	 	Are you a broker-dealer?

Yes o              No o

	 	(b)	 	If “yes” to Section 4(a), did you receive your Registrable Securities as
compensation for investment banking services to the Company?

Yes o              No o

			
	Note:	 	If no, the Commission’s staff has indicated that you should be
identified as an underwriter in the Registration Statement.

	 	(c)	 	Are you an affiliate of a broker-dealer?

Yes o              No o

			
	Note:	 	If yes, provide a narrative explanation below:

	 	 	 	 

	 
	 	 	 	 

	 
	 	(d)	 	If you are an affiliate of a broker-dealer, do you certify that you bought the
Registrable Securities in the ordinary course of business, and at the time of the
purchase of the Registrable Securities to be resold, you had no agreements or
understandings, directly or indirectly, with any person to distribute the Registrable
Securities?

Yes o              No o

			
	Note:	 	If no, the Commission’s staff has indicated that you should be
identified as an underwriter in the Registration Statement.

	5.	 	Beneficial Ownership of Other Securities of the Company Owned by the Selling Stockholder.
	 
	 	 	Except as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.
	 
	 	 	Type and amount of other securities beneficially owned:
	 
	 	 	 

	 
	 	 	 

	 
	6.	 	Relationships with the Company:

24

 

	 	 	Except as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity securities of the
undersigned) has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.
	 
	 	 	State any exceptions here:
	 
	 	 	 

	 
	 	 	 

	 
	7.	 	Plan of Distribution:
	 
	 	 	The undersigned has reviewed the form of Plan of Distribution attached as Annex A to the
Registration Rights Agreement, and hereby confirms that, except as set forth below, the
information contained therein regarding the undersigned and its plan of distribution is
correct and complete.
	 
	 	 	State any exceptions here:
	 
	 	 	 

	 
	 	 	 

***********

The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof and prior to the effective
date of any applicable Resale Registration Statement. All notices hereunder and pursuant to the
Agreement shall be made in writing, by hand delivery, confirmed or facsimile transmission,
first-class mail or air courier guaranteeing overnight delivery at the address set forth below. In
the absence of any such notification, the Company shall be entitled to continue to rely on the
accuracy of the information in this Notice and Questionnaire.

By signing below, the undersigned consents to the disclosure of the information contained herein in
its answers to Items (1) through (7) above and the inclusion of such information in the Resale
Registration Statement and the Prospectus. The undersigned understands that such information will
be relied upon by the Company in connection with the preparation or amendment of any such
Registration Statement and the Prospectus.

By signing below, the undersigned acknowledges that it understands its obligation to comply, and
agrees that it will comply, with the provisions of the Exchange Act and the rules and regulations
thereunder, particularly Regulation M in connection with any offering of Registrable Securities
pursuant to the Resale Registration Statement. The undersigned also acknowledges that it
understands that the answers to this Questionnaire are furnished for use in connection with
Registration Statements filed pursuant to the Registration Rights Agreement and any amendments or
supplements thereto filed with the Commission pursuant to the Securities Act.

The undersigned hereby acknowledges and is advised of the following Interpretation A.65 of the July
1997 SEC Manual of Publicly Available Telephone Interpretations regarding short selling:

25

 

“An Issuer filed a Form S-3 registration statement for a secondary offering of common stock which
is not yet effective. One of the selling stockholders wanted to do a short sale of common stock
“against the box” and cover the short sale with registered shares after the effective date. The
issuer was advised that the short sale could not be made before the registration statement become
effective, because the shares underlying the short sale are deemed to be sold at the time such sale
is made. There would, therefore, be a violation of Section 5 if the shares were effectively sold
prior to the effective date.”

By returning this Questionnaire, the undersigned will be deemed to be aware of the foregoing
interpretation.

I confirm that, to the best of my knowledge and belief, the foregoing statements (including without
limitation the answers to this Questionnaire) are correct.

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Questionnaire to be
executed and delivered either in person or by its duly authorized agent.

	 	 	 	 	 	 	 

	Dated:                     	 	Beneficial Owner:                                        	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

26exv10w60

Exhibit 10.60

LOCK-UP AGREEMENT

____ __, 2011

Chardan Capital Markets, LLC

17 State Street, Suite 1600

New York, NY 10004

			
	     Re:	 	Public Offering of Units by T3 Motion, Inc.

Ladies and Gentlemen:

Defined terms not otherwise defined in this letter agreement (the “Letter Agreement”) shall
have the meanings set forth in the Underwriting Agreement dated on or about the date hereof.
Pursuant to Section 4(l) of the Underwriting Agreement and in satisfaction of a condition of the
Underwriters’ obligations under the Underwriting Agreement, the undersigned irrevocably agrees with
the Company and the Representative that, from the date hereof until the 12 month anniversary of the
date of the Prospectus (such period, the “Restriction Period”), the undersigned will not,
and will cause all affiliates (as defined in Rule 144) of the undersigned or any person in privity
with the undersigned or any affiliate of the undersigned not to, without the prior written consent
of the Representative or as otherwise expressly stated this Letter Agreement, directly or
indirectly (i) offer, sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant
any option to purchase, make any short sale or otherwise dispose of (or enter into any transaction
which is designed to, or might reasonably be expected to, result in the disposition (whether by
actual disposition or effective economic disposition due to cash settlement or otherwise) , or
agree to dispose of, directly or indirectly, any shares of Common Stock , or establish or increase
a put equivalent position or liquidate or decrease a call equivalent position within the meaning of
Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules
and regulations of the Securities and Exchange Commission (the “SEC”) promulgated thereunder with
respect to any shares of Common Stock owned directly by the undersigned (including holding as a
custodian) or with respect to which the undersigned has beneficial ownership within the rules and
regulations of the SEC with the exception of the shares of Common Stock issuable upon exercise of
Class H Warrants (collectively, the “Undersigned’s Shares”), (ii) enter into any swap or
other arrangement or transaction that transfers to another, in whole or in part, any of the
economic consequences of ownership of any of the Undersigned’s Shares, whether any such transaction
described in clause (i) or (ii) above is to be settled by delivery of shares of Common Stock or
other securities, in cash or otherwise, or (iii) publicly disclose the intention to do any of the
foregoing. The foregoing restriction is expressly agreed to preclude the undersigned, and any
affiliate of the undersigned and any person in privity with the undersigned or any affiliate of the
undersigned from engaging in any hedging or other transaction which is designed to or which
reasonably could be expected to lead to or result in a sale or disposition or deemed sale or
disposition of the Undersigned’s Shares or the economics of the Undersigned’s Shares even if the
Undersigned’s Shares would be disposed of by someone other than the undersigned. Such prohibited
hedging or other transactions would include, without limitation, any short sale or any purchase,
sale or grant of any right (including, without limitation, any put or call option) with respect to
any of the Undersigned’s Shares or with respect to any security that includes, relates to, or
derives any significant part of its value from the Undersigned’s Shares.

 

 

Notwithstanding the foregoing, the undersigned may transfer any or all of the Undersigned’s Shares
in a private transaction including, without limitation, to any of its affiliates, provided that the
transferee thereof agrees to be bound in writing by the restrictions set forth in this Letter
Agreement and shall be permitted to make any required filings under the Exchange Act reflecting
such a transfer.

     Beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act.
In order to enforce this covenant, the Company shall impose irrevocable stop-transfer instructions
preventing the Transfer Agent from effecting any actions in violation of this Letter Agreement.

     The undersigned acknowledges that the execution, delivery and performance of this Letter
Agreement is a material inducement to the Underwriters to complete the transactions contemplated by
the Underwriting Agreement and that the Representative (which shall be a third party beneficiary of
this Letter Agreement) and the Company shall be entitled to specific performance of the
undersigned’s obligations hereunder. The undersigned hereby represents that the undersigned has
the power and authority to execute, deliver and perform this Letter Agreement, that the undersigned
has received adequate consideration therefor and that the undersigned will indirectly benefit from
the closing of the transactions contemplated by the Underwriting Agreement.

     This Letter Agreement may not be amended or otherwise modified in any respect without the
written consent of each of the Company, the Representative and the undersigned. This Letter
Agreement shall be construed and enforced in accordance with the laws of the State of New York
without regard to the principles of conflict of laws. The undersigned hereby irrevocably submits to
the exclusive jurisdiction of the United States District Court sitting in the Southern District of
New York and the courts of the State of New York located in Manhattan, for the purposes of any
suit, action or proceeding arising out of or relating to this Letter Agreement, and hereby waives,
and agrees not to assert in any such suit, action or proceeding, any claim that (i) it is not
personally subject to the jurisdiction of such court, (ii) the suit, action or proceeding is
brought in an inconvenient forum, or (iii) the venue of the suit, action or proceeding is improper.
The undersigned hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by receiving a copy thereof sent to the Company at
the address in effect for notices to it under the Underwriting Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. The
undersigned hereby waives any right to a trial by jury. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. The undersigned
agrees and understands that this Letter Agreement does not intend to create any relationship
between the undersigned and the Underwriters and that no Underwriter is entitled to cast any votes
on the matters herein contemplated and that no issuance or sale of the Undersigned’s Shares is
created or intended by virtue of this Letter Agreement.

*** SIGNATURE PAGE FOLLOWS***

2

 

     This Letter Agreement may be executed in two or more counterparts, all of which when taken
together may be considered one and the same agreement.

 

Signature

 

Print Name

 

Position in Company

Address for Notice:

 

 

 

Number of shares of Common Stock

 

Number of shares of Common Stock underlying subject to warrants, options, debentures or other
convertible securities

     By signing below, the Company agrees to enforce the restrictions on transfer set forth in this
Letter Agreement.

	 	 	 	 	 
	T3 Motion, Inc.
 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:  	 	 	 
	 

Acknowledged and agreed to

as of the date set forth above:

3

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