UNITED STATES SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 

FORM 8-K

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of earliest event reported: July 16, 2014

 

ENERGIE HOLDINGS, INC.

 (Exact name of registrant as specified in its charter)

 

Delaware

 (State or other jurisdiction of incorporation)

 

000-28562 94-2857548
(Commission File Number) (I.R.S. Employer
Identification No.)

 

4885 Ward Road, Suite 300Wheat Ridge, Colorado 80033

 (Address of principal executive offices) (Zip Code)

 

Registrant's telephone number, including area code: (404) 891-1118

_____________________________________________

 (Former name, former address and former fiscal year,

if changed since last report)

 

Registrant's telephone number, including area code: (720)-963-8055

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

 

[_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR240.14d-2(b))

 

[_] Soliciting material pursuant to Rule 14a-12 under Exchange Act (17 CFR240.14a-12)

 

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))

 

[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c))

 

1
 

  Item 1.01 Entry Into a Material Definitive Agreement

 

On or about July 16, 2014 Energie Holdings, Inc., Corp., a Delaware corporation (the “Company”), entered into an Investment Agreement (the “Investment Agreement”) with Dutchess Opportunity Fund, II, LP, a Delaware limited partnership (the “Investor”). Pursuant to the Investment Agreement, and subject to certain restrictions and conditions, the Company may issue and sell to the Investor, and the Investor shall purchase from the Company, up to that number of shares of the Company’s common stock having an aggregate purchase price of five million dollars ($5,000,000), over a period of 36 months from the first trading day following the effectiveness of the registration statement registering the resale of shares purchased by the Investor pursuant to the Investment Agreement.

 

The Company may in its discretion draw on the facility from time to time, as and when the Company determines appropriate in accordance with the terms and conditions of the Investment Agreement. The maximum number of shares of common stock that the Company is entitled to put to the Investor in any one draw down notice is the greater of either: (i) two hundred percent (200%) of the average daily volume (U.S. market only) of the Company’s common stock for the three (3) trading days prior to the date of delivery of the applicable draw down notice, multiplied by the average of the three (3) daily closing prices immediately preceding the notice date or (ii) one hundred thousand US dollars ($100,000).

 

The purchase price shall be set at ninety-five percent (95%) of the lowest daily volume weighted average price (VWAP) of the Common Stock during the five (5) consecutive trading day period beginning on the date of delivery of the applicable draw down notice. The Company has the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing.

 

There are put restrictions applied on days between the draw down notice date and the closing date with respect to that particular put. During such time, the Company shall not be entitled to deliver another draw down notice. In addition, the Investor will not be obligated to purchase shares of the Company’s common stock if: (i) there is no effective registration statement to cover the resale of the shares of common stock; (ii) the common stock is suspended from trading or the Company is notified of any pending or threatened proceeding or other action to suspend the trading of the common stock; (iii) the Company has not complied with its obligations and is otherwise not in breach of or in default under the Investment Agreement or any other related agreement; (iv) certain other conditions described in the Investment Agreement are not met.

 

The Investment Agreement also contains customary representations and warranties of each of the parties. The assertions embodied in those representations and warranties were made for purposes of the Investment Agreement and are subject to qualifications and limitations agreed to by the parties in connection with negotiating the terms of the Investment Agreement. The Investment Agreement further provides that the Company and the Investor are each entitled to customary indemnification from the other for, among other things, any losses or liabilities they may suffer as a result of any breach by the other party of any provisions of the Investment Agreement or Registration Rights Agreement (as defined below). Investors should read the Investment Agreement together with the other information concerning the Company that the Company publicly files in reports and statements with the Securities and Exchange Commission (the “SEC”).

 

 Pursuant to the terms of a Registration Rights Agreement dated July 16, 2014 between the Company and the Investor (the “Registration Rights Agreement”), the Company is obligated to file one or more registrations statements with the SEC to register the resale by the Investor of the shares of Common Stock issued or issuable under the Investment Agreement. In addition, the Company is obligated to use all commercially reasonable efforts to have the registration statement remain effective by the SEC as provided for in the Investment Agreement. In connection with the preparation of the Investment Agreement and the Registration Rights Agreement, the Company paid the Investor a document preparation fee in the amount of $15,000.

 

The foregoing description of each of the Investment Agreement and the Registration Rights Agreement is qualified in its entirety by reference to the full text of the Investment Agreement and the Registration Rights Agreement, respectively, which are filed as Exhibit 10.1 and 10.2 to this Report on Form 8-K and incorporated herein by reference.

2
 

 

Item 7.01 Regulation FD Disclosure

 

The Company will issue a press release on July 22, 2013 regarding entry into the Investment Agreement, which is attached as Exhibit 99.1.

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits

 

Exhibit No.

Description
10.1 Investment Agreement by and between Energie Holdings, Inc. and Dutchess Opportunity Fund, II, LP, dated as of July 16, 2014
10.2 Registration Rights Agreement by and between Energie Holdings, Inc. and Dutchess Opportunity Fund, II, LP, dated as of July 16, 2014
99.1 Press Release dated July 22, 2014

 

3
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: July 21, 2014

 

ENERGIE HOLDINGS, INC.
 By:   /s/ Harold Hansen

Harold Hansen

President

(Principal Executive Officer)

 

4

Exhibit 10.1  

I NVES T M E N T A G REE M EN T

 

I NVES T M EN T A G RE E M EN T (t h i s “ A G REE M E N T ” ) , d a t ed as o f Ju l y 16, 2014 by a n d b e t w e e n ENER GI E H O L D I N G S , I NC . , a D e l a w are corpor a t i on (t he “ C om p a n y ”) , a n d D utche s s O p p o r t u ni t y F u n d , I I , L P , a D el a w are L i m i t ed P a r t n e r sh i p ( t he “I n v est o r ” ) .

 

W H EREAS , t he p a rt i es d e s i r e t h at , u p on t he t e rm s a n d su b j ect t o t he co n d i t i o n s co n t a i n e d h e r e i n, t he I n v estor s h a l l i n v est up t o f i v e m illi on d oll ars ( $5,00 0 , 0 0 0) t o p u r c h ase t he C ompan y ' s C o m m on S t o ck w i t h $ . 0001 p a r v a l ue p e r sh a r e (t he “ C o mm on S t o c k ” ) ;

 

W H EREAS , such i n v est m e n t s w il l be m a d e i n r e li a n ce u p on t he pro v i s i o n s of S e c t i on 4( 2 ) u n d e r t he S ec u r i t i es A ct o f 1 9 3 3 , as a m e n d e d ( t h e “ 1 9 33 A c t ” ) , R u l e 5 0 6 o f R e gu l ati o n D , a n d t he r u l es a n d r e gu l ati o n s pro m ulg a t ed t h e r e u n d er, a n d / or u p on such o t h er e x emp t i on fr o m t he r e g i s tr a t i on r e qu i r e m e n t s o f t he 1 9 33 A c t as May be a v a il a bl e w i t h r es p ect t o a n y or a l l o f t he i n v est m e n t s i n C o m m on S t o c k t o be m a d e h e r e u n d er; a n d

 

W H EREAS , co n t emp o r a n e o u s l y wi t h t he e x ec u t i on a n d d el i v ery of t h i s A g r e e m e n t , t he p a r t i es h e r eto are e x ec u t i n g a n d d el i v eri n g a R e g i s t r at i on Ri g hts A g r e e m e n t s u bstan t i a ll y i n t he f o r m at t ac h ed h e r eto (t he “ R e g i s t r ati o n Ri g h t s A g r e e m e nt ” ) p u r su a nt t o w h i c h t he C ompany h a s a g r e e d t o pro v i de cer t a i n r e g i s tr a t i on r i g h t s u n d e r t he 1 9 33 A c t , a n d t he r u l es a n d r e g u l ati o n s pro m u l g ated t h e r e u n d e r , a n d app l i ca bl e s t a t e se c uriti e s l a w s.

 

N O W T H ERE FOR E , i n co n s i d e r ati o n o f t he f o r e g o i n g r ec i t a l s, w h i ch sh al l be co n s i d e r ed an i ntegral p a r t o f t h i s A g r e e m e nt , t he co v e n a n t s a n d a g r e e m e n t s s e t f o r t h h e r e a ft e r , a n d oth e r g o o d a n d v a l u a b l e co n s i d e r ati o n, t he r ec ei p t a n d s u f f i c i e n cy o f w h i ch i s h e r e b y ac k n o w l e d g e d , t he C o m p a ny a n d t he I n v estor h e r e b y a gree as f o ll o w s:

 

SEC T I O N 1 . DE FIN I T I O NS .

 

A s used i n t h i s A g r e e m e nt , t he f o ll o wi ng t e r m s sh al l h a v e t he f o ll o wi ng m e a n i n g s sp e c i f i ed or i n di cated b el o w , a n d such m e a n i n g s sh al l be e q u all y a p p li ca b l e t o t he s i n g u l ar a n d p l ural f o r m s o f such d e f i n e d t e rm s .

 

“ 1 9 33 A c t ” sh al l h a v e t he m e a n i n g set f o rt h i n t he r ec i t a l s o f t h i s A g r e e m e n t .

 

“ 1 9 34 A c t ” sh al l m e a n t h e Sec u r i t i es E x ch a n g e A ct o f 1 9 3 4 , a s i t m ay be amend e d.

 

“ AAA ” sh al l h a v e t he m e a ni ng sp e c i f i ed i n Se c t i on 11.

 

“ A f f ili at e ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 5(H ) .

 

“ A greem e n t ” sh al l m e a n t h i s I n v es t m e n t A g r e e m e nt.

 

“ A rt i c l es o f I nc o r p o r a t i o n ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 4 ( C ) .

 

“ B y - l a w s ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 4(C ) .

 

“ Cl os i n g ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 2 ( E ) .

 

“ Cl os i ng D a t e ” sh al l h a v e t he m e a n i n g spec i f i ed i n Secti o n 2 ( E ) .

 

 

 

 

ELED INVESTMENT AGREEMENT JULY.2014 1  
 

“ C o m m on S t o c k ” sh al l h a v e t he m e a n i n g set f o r t h in t he r ec i t a l s o f t h i s A g r e e m e n t .

 

“ C ompan y ” sh al l h a v e t h e m e a n i n g set f o rt h i n t h e p r e a m b l e o f t h i s A g r e e m e nt .

 

“ C o n tr o l ” or “ C o n tr o ls ” s h a l l h a v e t he m e a n i n g sp e c i f i ed i n Secti o n 5 ( H ) .

 

“ D T C ” sh al l h a v e t he m e a ni ng sp e c i f i ed i n Se c t i on 2 ( E ).

 

“ D W A C ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 2 ( E ).

 

“ E f f e c t i v e D at e ” sh al l m e an t he d a t e t he SE C d e c l ares e f f e c t i v e u n d e r t he 1 9 33 A ct t he

R e g i s t r ati o n S t at e m e n t c o v eri n g t he S ec u r i t i es.

 

“ E q u i t y L i ne T r a n sa c t i on D oc u m e n t s ” sh al l m e a n t h i s A greeme n t a n d t he R e g i s t r ati o n

Ri g hts A g r e e m e nt .

 

“ F AST ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 2 ( E ).

 

“ F e e Sh a r e s ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n S e c t i on 1 1 .

 

“ I n d e m n i t i es ” sh al l h a v e t he m e a n i n g sp e c i f i ed i n S ecti o n 10.

 

“ I n d e m n i f i ed L i a bili t i e s ” s h al l h a v e t he m e a n i n g s p ec i f i ed i n Secti o n 1 0.

 

“ I n d e m n i t o r ” sh al l h a v e t he m e a n i n g sp e c i f i ed i n S ecti o n 10.

 

“ I n v esto r ” sh al l h a v e t he m e a n i ng i n di cated i n t he preamb l e o f t h i s A gree m e n t .

 

“ M ate r i al A d v erse E f f e c t ” sh al l h a v e t he m e a n i n g sp e c i f i ed i n Secti o n 4(A ) .

 

“ M a x i m um C o m m on S t o ck I ssu a nc e ” sh al l h a v e t he m e a n i n g sp e c i f i ed i n S ecti o n 2 ( F ) .

 

“ M i n i m um A cce p t a bl e P r i c e ” w i t h r es p ect t o a n y P ut N otice D ate sh al l be t he pri c e d e f i n e d by t he C ompany i n t he a p p li ca bl e Put N ot i ce.

 

“ O p e n M ar k e t A d j us t m e n t A m o u n t ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 2 (G ) .

 

“ O p e n M ar k e t S h a r e P u r ch a s e ” sh al l h a v e t he m e a ni ng sp e c i f i ed i n Se c t i on 2 (G ) .

 

“ O p e n P e r i od ” sh al l m e a n t he p e r i od b e g i n n i ng on a n d i nc l u di ng t h e Trad i ng D ay i mm e di ate l y f o ll o w i ng t he E ff ecti v e D ate a n d e n d i ng on t he e a r li er t o occ u r o f ( i ) t he d a t e w h i ch i s t h i rt y - s i x ( 36) m o n t h s fr o m t he E ff ecti v e D ate; or ( ii ) t e r m i n a t i on o f t he A g r e e m e n t i n acc o r d a nce w i t h Secti o n 9, b el o w .

 

“ P r i c i ng P eri o d ” sh al l m e an t he f i v e ( 5 ) co n sec u t i v e T r a di n g D a y s b e g i n n i ng on t he P u t N otice D ate a n d e n d i ng on a n d i nc l u di ng t he d a t e t h a t i s f o u r ( 4) T r a di n g D a y s af t er such P u t N otice D at e .

 

“ P r i nc i p a l M ar k e t ” sh al l m e a n t he N as d a q C a pi t al M ar k e t , t he NYS E A m e x , t he N ew Y o r k S t o c k E x ch a n g e, t h e N as d aq G l o b al M ar k e t , t he N as d a q G l o b al S e l ect M ar k e t or t he O T C B u ll etin B o a r d, w h i ch e v e r i s t he p r i nc i p a l m a r k et on w h i ch t he C o m m on S t o c k i s li s t e d .

 

 

ELED INVESTMENT AGREEMENT JULY.2014 2  
 

“ P r os p e c t us ” sh al l m e a n t he pr o sp e c t u s, pre l i m i n a r y prospectus a n d su p p l emen t al prospect u s us e d i n con n ecti o n w i t h t he R e g i s tr a t i on S t a t eme n t .

 

“ P urchase A m o u n t ” sh a l l m e a n t he t o t al amo u nt b ei n g p ai d by t he I n v estor on a

p a rt i cu l ar Cl os i n g D a t e t o pu r ch a se t h e Sec u r i t i es.

 

“ P urchase P r i c e ” sh al l m e a n n i n e t y- f o u r p e r c e nt ( 9 4 % ) o f t he l o w est d ai l y V W A P ( a s d e f i n e d he r e i n) o f t he C o mm on S t o c k d u r i ng t he P r i c i ng P e r i o d .

 

“ P u t ” sh al l h a v e t he m e a n i ng s e t f o r t h i n Secti o n 2(B) h e r e o f .

 

“ P ut A m o u n t ” sh al l h a v e t he m e a n i ng s e t f o r t h in S ecti o n 2( B ) h e r e o f .

 

“ P ut N otice ” sh al l m e a n a w r i tt en n o t i ce i n t he f o r m a t t ac h ed h e r e t o as E xh i b i t C , se n t t o t he I n v est o r by t he C o m p a ny s t ati n g t he P ut A m o u nt i n U . S . d oll ars t he C ompany i ntends t o se l l t o t he I n v estor p u r su a n t t o t he t e r m s o f t he A g r e e m e n t a n d s t a t i ng t he c u r r e n t n u m b e r o f S h a r e s i ssu e d and o u t s t a n d i n g o n such d a t e .

 

“ P ut N otice D at e ” sh al l m e a n t he Trad i ng D a y , as set f o rt h b el o w , i mm e d i ate l y f o ll o wi ng t he d a y on w h i ch t he I n v estor r ec ei v es a P ut N otic e , h o w e v er a P ut N o t i ce sh al l be d e em e d d el i v ered on ( a) t he T r a d i ng D ay i t i s r ec ei v ed by f acs i m il e or ema i l by t he I n v estor i f such n o t i c e i s r ec ei v ed pri o r t o noon E aste r n T i m e, o r ( b) t h e i mm e di ate l y succ e e di ng Trad i ng D ay i f i t i s r ec ei v ed by f acs i m il e or othe r w i se a f t e r noon E aste r n T i m e on a Trad i ng D a y . N o P ut N o t i ce m ay be d e e m ed d eli v ered on a d a y t h a t i s n o t a Trad i ng D a y .

 

“ P ut R est r i c t i on ” sh al l m e a n t he d a y s d u r i ng t he P r i c i ng P eri o d. D uri n g t h i s t i m e, t h e

C ompany sh al l n o t be e n t i t l ed t o d eli v er a n oth e r P ut N otic e .

 

“ P ut S h a r es D u e ” sh al l h a v e t he m e a n i n g spec i f i e d in S ecti o n 2 (G ) .

 

“ R e g i s tr a t i on Ri g hts A g r e e m e n t ” sh al l h a v e t he m e a n i ng s e t f o r t h i n t he r ec i t a l s of t h i s

A g r e e m e n t .

 

“ R e g i s tr a t i on S t ate m e n t ” m e a ns t he r e g i s tr a t i on s t at e m e n t o f t he C omp a ny f il ed u n d e r

t he 1 9 33 A ct co v eri n g t h e r es al e by t he I n v estor o f t he C o mm on S t o c k i s s u a b l e he r e u n d e r .

 

“ R e l ated P a r t y ” sh a ll h a v e t he m e a n i n g spec i f i ed i n Secti o n 5 ( H ) .

 

“ R es ol uti o ns ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n S ecti o n 7 ( E ) .

 

“ SEC ” sh al l m e a n t he U .S . S ec u r i t i es & E x ch a n ge C o m m i ss i o n .

 

“ SE C D oc u m e n ts ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Secti o n 4 ( F ).

 

“ S ec u r i t i es ” sh al l m e a n t he sh a r es o f C o m m on St ock i ssu e d p u r su a nt t o t he t e r m s o f t he

A g r e e m e n t .

 

“ S h a r es ” sh al l m e a n t he sh a r es o f t he C ompan y ’ s C o m m on S t o c k .

 

“ S u b s e q u e nt P urchas e r s ” sh al l h a v e t he m e a n i ng sp e c i f i ed i n Se c t i on 2 ( G ).

 

“ S u b s i d i ari e s ” sh al l h a v e t he m e a n i n g sp e c i f i ed i n S ecti o n 4 ( A ) .

 

 

ELED INVESTMENT AGREEMENT JULY.2014 3  
 

“ Trad i n g D a y ” sh al l m e a n a n y d a y on w h i ch t he P r i nc i p a l M ar k et f or t he C om m on S t o c k

i s o p en f o r tr a di n g, fr o m t he h o urs o f 9:30 a m u n t i l 4:00 pm B oston T i m e .

 

“ V W AP ” sh al l m e a n t he v o l ume w e i g hted a v erage p r i ce d u r i n g a T r a di n g D a y .

 

SEC T I O N 2 . PURCHAS E AN D SAL E O F C O M M O N ST O CK.

 

( A ) PURCHAS E AN D SA L E O F C O M M O N S T OCK . Su b j e ct t o t h e t e r ms a nd co n d i t i o n s set f o rt h h e r e i n, t he C ompany m ay i s sue a n d se l l t o t he I n v esto r , a n d t he I n v est o r sh al l p u r ch a se fr om t he C ompan y , up t o t h a t n u m b e r o f S h a r e s h a v i ng an a g g r e g a t e P urchase P r i ce o f f i v e m illi on d oll ars ($ 5 , 0 0 0,00 0 ) .

 

( B ) DE LIV ER Y O F PU T N O TIC ES . S u b j ect t o t he t e rm s a n d co n d i t i o n s o f t h e E q u i t y L i ne T r a n sa c t i on D oc u m e n t s, a n d f r o m t i m e t o t i m e d u r i ng t he O p e n P eri o d, t he C ompany m a y , i n i t s so l e d i sc r eti o n, d e l i v er a P ut N otice t o t he I n v estor w h i ch s t a t es t he d oll ar amount ( d e s i g n a t ed i n U . S . D o ll ars) (t he “ P u t A m o u n t ” ) o f S h a r es w h i ch t he C ompany i ntends t o se l l t o t he I n v est o r on a Cl os i n g D a t e ( t he “ P u t ” ) . T he P ut A m o u n t sh al l be e q u a l t o up t o e i t h e r 1) t w o hun d r ed p e r ce n t ( 2 0 0 % ) of t he a v era g e d ail y v o l ume ( U . S . m a r k et o nl y ) o f t he C o m m on S t o c k f or t he t hree ( 3) Trad i ng D a y s pri o r t o t he a p p li ca bl e P ut N otice D ate, m ul t i p li ed by t he a v era g e o f t he t h r ee ( 3) d ail y c l os i ng p r i ces i m m e di at e l y preced i ng t he P u t D a t e or 2) one h u n d r ed t h o us a nd d oll ars ( $100 , 0 0 0 ) . D uri n g t he O p e n P eri o d, t he C ompany sh al l n o t be e n t i t l ed t o su b m i t a P ut N otice u n t i l t he P r i c i ng P eri o d f or t h e pri o r P ut h a s b e en c o m p l eted. T he C o m m on S t o c k i d e nt i f i ed i n t he P u t N otice sh al l be p u r ch a s ed f o r a price e q u al t o t h e Purchase P r i c e .

 

( C ) C O M PA N Y’ S R IG H T TO SUSPEND . O n e a c h P ut N otice su b m i tt ed t o t he I n v estor by t he C ompan y , t he C ompany sh a l l h a v e t he o p t i on t o sp e c i f y a S us p e n s i on P r i ce f o r t h a t P u t . I n t he e v e n t t he C o m m on S t o c k f a ll s b el o w t he S us p e n s i on P r i ce, t he P u t sh al l be t emp o r ari l y sus p e n d e d. T he P ut sh al l r es u m e at such t i m e as t he C om m on S t ock i s a b o v e t he S us p e n s i on P r i ce, pro v i d e d t he d a t es f or t he P r i c i ng P eri o d f or t h a t p a rt i c u l ar P ut are s t il l v a li d. I n t he e v e n t t he P r i c i ng P eri o d h a s b e en comp l ete, a ny sh a r es a b o v e t he S us p e n s i on P r i ce d u e t o t he I n v est o r sh al l be so l d t o t he I n v estor by t h e C ompany at t he S us p e n s i on P r i ce u n d e r t he t e r m s o f t h i s A greeme n t . T he S us p e n s i on P r i ce f or a P ut m ay n o t be ch a n g ed by t he C ompany o n ce su b m i tt ed t o t he I n v esto r .

 

( D ) C O NDI T I O N S TO I N V ES T O R ' S O B L IG A TI O N T O PURCHAS E SHARES . N ot w i t hstand i ng a n y t h i ng t o t he co n tr a r y i n t h i s A g r e e m e n t , t he C o m p a ny sh al l n o t be e n t i t l ed t o d el i v er a P ut N otice a n d t he I n v estor sha l l n o t be o bli g ated t o p u r ch a se a n y S h a r es at a Cl os i ng u nl ess each o f t he f o ll o wi ng co n d i t i o n s are s a t i s f i e d :

 

( 1) a R e g i s tr a t i on S t at e m e nt sh al l h a v e b e en d e c l ared e f f e c t i v e a n d sh al l r ema i n e ff e c t i v e a n d a v a il a bl e f or t he r es al e o f a l l t he R e g i s tr a bl e S e c u r i t i es ( as d e f i n e d i n t h e R e g i s t r ati o n Ri g h t s A g r e e m e nt ) at a l l t i m es u n ti l t he Cl os i ng wi t h r es p ect t o t he su b j ect P u t N otic e ;

 

( 2) at a l l t i m es d u r i n g t he p eri o d b e g i n ni n g on t he r e l ated P ut N otice D a t e a n d end i ng on a n d i n c l u d i ng t he r e l ated Cl os i ng D ate, t he C o m m on S t o c k sh al l h a v e been li s t ed on t he P r i nc i p a l M ar k e t a n d sh al l n o t h a v e b e en sus p e n d e d f r o m tr a di n g t h e r e o n f or a p e r i od o f t w o ( 2) co n s e cuti v e Tr a d i ng D a y s d u r i n g t he O p e n P eri o d a n d t he C o m p a ny sh al l n o t h a v e b e en n o t i f i ed o f a n y p e n di ng or t h r e a t e n ed pr o c e e di ng or o t h e r a c t i on t o sus p e n d t he tr a di n g o f t he C o mm on S t o c k;

 

 

 

ELED INVESTMENT AGREEMENT JULY.2014 4  
 

( 3) t he C ompany h a s com p li ed w i t h i t s o bli g ati o ns a n d i s othe r w i se n o t i n breach o f or i n d e f a ul t u n d er t h i s A greeme n t , t h e R e g i s t r ati o n R i g hts A greeme n t or a n y oth e r a g r e e m e n t e x ec u t ed i n co n n e c t i on h e r e w i t h w h i ch h a s n o t b e en cured pri o r t o d eli v ery of t he P ut N otic e ;

 

( 4) no i n j u n c t i on sh al l h a ve b e en i ssu e d a n d r ema i n i n f o r c e , or a c t i on com m e n ced by a g o v ern m e n t al a u t h o r i t y w h i ch h as n o t b e en s t a y ed or a b a n d o n e d , proh i b i t i n g t he p u r ch a se or t he i ss u a n ce o f t he S ec u r i t i es; a nd

 

( 5) t he i ssu a nce o f t he S e c uriti e s p u r su a n t t o t h i s A g r e e m e n t w il l n o t v i o l ate a n y sh a r e h o l d e r a p p r o v al r e q u i r eme n t s o f t he P r i nc i p a l M ar k et.

 

I f a n y of t he e v e n t s d e s c r i b e d i n c l a u ses ( 1) t h r o u g h ( 5 ) a b o v e occ u r s d u r i ng a P r i c i ng P eri o d , t h e n t he I n v est o r sh al l h a v e no o bli g ati o n t o p u r ch a se t he C o m m on S t o c k su b j e c t t o t h e a p p li ca bl e Put N otic e .

 

( E ) M ECHAN I C S O F PURCHAS E O F SHARE S B Y I NVES TOR. T he c l os i ng o f t he p u r ch a se by t he I n v estor o f S h a r es ( a “ Cl os i n g ” ) sh al l occ u r on t he d a t e w h i ch i s no l ater t h a n f i v e ( 5) Trad i ng D a y s f o ll o wi ng t he a p p li ca bl e P ut N otice D ate ( e a ch a “ Cl os i ng D at e ” ) . O n e a ch Cl os i ng D ate, ( I ) t he C ompany sh al l d e l i v er t o t he I n v est o r p u r su a nt t o t h i s A g r e e m e n t , cer t i f i c a t es r e p r es e nti n g t he S h a r es t o be i ssu e d t o t he I n v estor on such d a t e a n d r e g i s t ered i n t he n a m e o f t he I n v esto r ; a n d ( I I ) t he I n v estor s h a l l d el i v er t o t he C omp a ny t he P urchase P r i ce t o be p ai d f or such S h a r es, b a sed on t he P u t A m o u nt set f o rt h i n S ecti o n 2( B ) . I n li eu o f d el i v eri n g p h y s i cal cer t i f i cates r e p r es e nti n g t he S ec u r i t i es a n d pro v i d e d t h a t t he C o m p a n y ' s tr a n s f er a g e n t t h e n i s p ar t i c i p a t i n g i n T he D e p o s i t ory T r u st C o m p a ny ( “ D T C ” ) F a st A u t om a t ed S ec u r i t i es Tran s f e r (“ FA S T ” ) pr o g r a m , u p on r e q u est o f t he I n v est o r , t he C ompany sh al l use a l l com m e r c i a ll y r e a so n a bl e e ff o r t s t o ca u se i t s tr a n s f er a g e n t t o e l ect r o ni ca l l y tr a n s m i t t he S ec u r i t i es by c r e di t i n g t he acc o u n t o f t he I n v es t or ' s prime br o k e r ( as s p e c i f i ed by t he I n v estor wi t h i n a r e a so n a bl e p e r i od i n a d v a n ce o f t he I n v esto r' s n o t i ce) w i t h D TC t hro u g h i t s D e p osit W i t h d r awal A g e n t C o m m i ss i on (“ DW A C ” ) s y s t e m .

 

T he C o m p a ny u n d e r s t a n ds t h a t a d el ay i n t he i ssu a nce o f S ec u r i t i es b e y o n d t he Cl os i n g D ate co ul d r es ul t i n ec o n o m i c d a m a g e t o t he I n v esto r . A ft er t he E ff e c t i v e D ate, as compens a t i on t o t he I n v estor f o r such l oss, t h e C ompany a g r e e s t o m a k e p a y m e n t s t o t he I n v estor f or l a t e i ssu a n c e o f S ec u r i t i es ( d eli v ery o f S ec u r i t i es a ft er t he a p p li ca bl e Cl os i ng Date) i n acco r d a nce w i t h t he f o ll o w i ng sch e d ul e ( w h e r e “ N o. o f D a y s L a t e” i s d e f i n e d as t he n u m b e r o f tr a di n g d a y s b e y o n d t he Cl os i ng D at e , w i t h t he A m o u nts b ei n g c u m u l ati v e. ) :

 

L A T E PAY M EN T FOR E AC H N O . O F DAY S L A TE

 

1 $100
2 $200
3 $300
4 $400
5 $500
6 $600
7 $700
8 $800
9 $900
10 $1000
O v er 10 $ 1 , 0 0 0 + $ 2 00 f or e a c h B us i n e ss

 

 

ELED INVESTMENT AGREEMENT JULY.2014 5  
 

D ay l ate b e y o n d 10 d a y s

 

 

 

 

T he C ompany sh al l m a k e a n y p a y m e n t s i nc u rr ed u n d e r t h i s S ecti o n i n i mm e di ate l y a v a i l a bl e f u n ds u p on d e m a n d by t he I n v esto r . N oth i ng h e r e i n sh al l li m i t t he I n v esto r ' s r i g ht t o p u r sue a c t u a l d a m a g e s f or t he C ompan y ' s f a il ure t o i ssue a n d d e li v er t he S ec u r i t i es t o t he I n v esto r , e x ce p t t h a t su c h l ate p a y m e n t s sh al l o f f set a n y such actual d a m a g es i nc u rr ed by t h e I n v esto r , a n d a n y O p e n M ar k et A d j u s tm e n t A m o u n t , as s et f o rt h b el o w .

 

( F) O VERA LL LI M I T O N C O M M O N S T O C K I SSUAB L E . N ot w i t hstand i ng a n y t h i ng co n t a i n e d h e r e i n t o t he co n tr a r y , i f d u r i ng t he O p e n P eri o d t he C ompa n y b e comes li s t ed on a n e x ch a n g e t h a t li m i t s t h e n u m b e r o f sh a r es o f C om m on S t o c k t h a t m ay be i ssu e d wi t h o ut sh a r e h o l d e r a p pro v a l , t h en t he n u m b e r o f S h a r es i ssu a b l e b y t he C ompany a n d p u r ch a sa bl e b y t he I n v esto r , sh al l n o t e x ce e d t h a t n u m b e r o f t he sh a r es o f C o mm on S t o c k t h a t m ay be i ssu a b l e wi t h o ut sh a r e h o l d e r a p p r o v al (t he “ M ax i m um C om m on S t o c k I ssu a nc e ” ) . I f such i ssu a n ce o f sh a r es o f C o m m on S t o c k co ul d ca u se a d eli s t i ng on t he P r i nc i p a l M arke t , t h e n t he M a x i m um C om m on S t o c k I ssu a n c e sh al l f i r st be a p p r o v ed by t he C ompan y ' s sh a r e h ol d e r s i n acc o r d a n ce wi t h a p p li ca bl e l a w a n d t he B y - l a w s a n d A rt i c l es o f I nc o r p o r a t i on o f t he C ompan y , as amend e d . T he p a rt i es u n d e r s t a n d a n d a g r ee t h a t t he C ompan y ' s f a il ure t o s e e k or o b t a i n su c h sh a r e h o l d e r a p pro v al sh al l i n no w a y a d v erse l y a f f e c t t he v a li d i t y a n d d ue a u t h o r i z ati o n of t he i ssu a nce a n d sa l e o f S e curiti e s or t he I n v esto r ' s o bli g ati o n i n acc o r d a n c e w i t h t he t e r m s a n d co n d i t i o n s h e r e o f t o p u r ch a se a n u m b e r o f Sh a r es i n t he a g gr e g ate up t o t he M a x i m um C om m on S t o c k I ssu a n c e li m i t ati o n, a n d t h a t s u ch a p pro v al p e rt a i ns o n l y t o t he a p p li ca b i li t y o f t he M a x i m um C om m on S t o c k I ssu a nce li m i t ati o n pro v i d e d in t h i s S e c t i on 2(H).

 

( G ) O PE N M ARKE T AD J US T M EN T . I f , by t he t h i r d ( 3 r d) b u s i n e ss d a y a f t e r a Cl os i ng D ate, t he C om p a n y f a il s t o d eli v er a n y p or t i on o f t he S ec u r i t i es s u b j ect t o a P ut N o t i ce t o t he I n v estor ( t he “ P ut S h a r es D u e ” ) a n d t he I n v estor p u r ch a ses, i n an o p en m a r k e t tr a n sa c t i on or o t h e r w i se, sh a r es o f C o m m on S t o ck n e cess a r y t o m a k e d e l i v ery b y t he I n v est o r o f sh a r es i n r es p e c t o f sa l es t o su b s e q u e nt p u r ch a ser s , p u r su a n t t o t r a ns a c t i o n s e n t e r ed i nto b e f ore t he Cl os i ng D a t e (“ S u b s e q u e nt P urch a sers ” ) , w h i ch such sh a r es of C o m m on S t o c k w o u l d h a v e b e en d e l i v ered t o t he I n v estor by t he C ompany b u t f or t he C ompan y ’ s f a il ure t o so d el i v er (t he “ O p e n M arket S h a r e P u r ch a se ” ) , t h en t he C ompany sh al l p a y t o t he I n v est o r , i n a d d i t i on t o a n y other amounts d u e t o I n v estor p u r su a nt t o t he P ut, a n d n ot i n li eu t h e r e o f , t h e O p e n M ar k e t A d j u s t m e n t A m o u nt ( as d e f i n e d b el o w ) . T he “O p e n M ar k e t A d j us t m e n t A m o u n t ” i s t he amount e q u a l t o t h e e x cess, i f a n y , of ( x ) t he I n v esto r' s t o t al p u r ch a se price ( i nc l u di ng br o k er a g e c o mm i ss i o n s , i f a n y ) f o r t he O p e n M ar k e t S h a r e P urch a se m i n u s ( y ) t he n e t procee d s ( a ft er br o k e r a ge co m m i ss i o n s, i f a n y ) r e ce i v ed by t he I n v estor f r om t he sa l e o f t he P ut S h a r es D ue t o such S u b se q u e n t P urchas e r s. T he C ompany sh al l p ay t he O p e n M ark e t A d j us t m e n t A m o u nt t o t h e I n v estor i n i mm e di ate l y a v a i l a bl e f u n ds w i t h i n f i v e ( 5) b u s i n e ss d a y s o f w r i tt en d e m a n d by t he I n v esto r . B y w ay of ill ust r a t i on a n d n o t i n li m i t a t i on o f t he f o r e g o i n g , i f t he I n v est o r p u r ch a ses sh a r es o f C o mm on St ock h a v i ng a t otal p u r c h a se price ( i nc l u di ng br o k er a g e c o m m i ss i o n s) o f $ 1 1,000 t o co v er an O p e n M ar k e t S h a r e P u r ch a se w i t h r es p ect t o sh a r es o f C o m m on S t o c k i t so l d t o S u b s e q u e nt P urchasers f or n e t pr oc e e ds o f $ 1 0,00 0 , t he O p e n M ar k e t A d j u s tm e n t A m o u nt w h i ch t he C o m p a ny w i l l be r e q u i r ed t o p a y t o t he I n v estor w il l be $ 1 , 0 0 0 .

 

( H ) LI M I T A T I O N O N A M O UN T O F O W N ERSH I P . N ot w i t hstand i ng a n y t h i ng t o t he co n tr a r y i n t h i s A g r e e m e nt, i n no e v e n t sh al l t he I n v estor be e n t i t l ed t o p u r ch a se t h a t n u m b e r o f S h a r es, w h i ch w h e n a d d ed t o t he sum o f t he n u m b e r o f sh a r es o f C o m m on S t o c k b e n e f i c i a ll y

 

 

ELED INVESTMENT AGREEMENT JULY.2014 6  
 

o w n e d ( as such t e r m i s d e f i n e d u n d e r S e c t i on 1 3(d) a n d R u l e 1 3 d - 3 o f t he 1 9 34 A c t ) , by t h e I n v esto r , w o ul d e x ce e d 4.99% o f t he n u m b e r o f sh a r es o f C o m m on S t o ck o u t s t a n d i n g on t h e Cl os i ng D at e , as d et e r m i n e d in acc o r d a nce w i t h R u l e 13 d - 1 ( j ) o f t he 1 9 34 A c t .

 

SEC T I O N 3 . I NVES TOR'S REPRESEN T A T I O NS , W ARRA N TIES AN D C O VENAN T S . T h e

I n v estor r e p r e se n t s a n d w ar r a n t s t o t he C o m p a n y , a n d co v e n a n t s, t h at :

 

( A ) S O PH I S T I C A T E D I NVES TOR. T he I n v est o r h a s , by r e a son o f i t s b u s i n e ss a n d f i n a nc i al e x p e r i e n ce, such k n o w l e d g e, so p h i s t i c ati o n a n d e x p e r i e n ce i n f i n a n c i al a n d b u s i n e ss m a t t ers a n d i n m a k i n g i n v est m e n t d e c i s i o n s o f t h i s t y pe t h a t i t i s ca p a b l e o f ( 1) e v a l u a t i ng t he m erits a n d r i sks o f an i n v est m e n t i n t he S ec u r i t i es a n d m a k i n g an i n f o r m ed i n v est m e n t d e c i s i o n ; ( 2) p r ote c t i ng i t s o w n i n t ere s t ; a n d ( 3) b e a r i n g t he ec o n o m i c r i s k o f s u ch i n v est m e n t f or a n i n d e f i n i t e p e r i od o f t i m e .

 

( B ) AU T H O R I Z A T I O N ; EN F O RCE M E N T . T he I n v e s t or h as t he r e q u i s i t e p ow er a n d a u t h o r i t y t o e n t er i nto a n d p e r f o r m t h i s A gre e m e n t a n d t he R e g i s t r ati o n Ri g h t s A greeme n t . T he e x ec u t i on a n d de li v e r y o f t he E q ui t y L i ne T r a n sacti o n D oc u m e n t s by t he I n v estor a n d t h e co n su m m ati o n by i t o f t he tr a n sacti o ns co n t e m p l ated h e r e b y a n d t h e r e b y h a v e b e en d u l y a n d v a l i d l y a u t h o r i z ed b y t he I n v esto r' s g e n eral p a rt n ers a n d no f u r t h e r co n s e n t or a u t h o r i z ati o n i s r e q u i r ed by i t s p a rt n e r s. T h i s A g r e e m e n t h a s b e en d u l y a n d v a l i d l y a u t h ori z e d , e x ec u t ed a n d d el i v ered on b e h al f o f t he I n v estor a n d i s a v a l i d a n d b i n di ng a g r e ement o f t he I n v est o r e n f orceab l e a g a i nst t he I n v estor i n acc o r d a nce w i t h i t s t er m s , su b j e c t as t o e n f orceab i li t y t o g e n e r al pri n c i p l es o f e q u i t y a n d t o a p p li c a b l e b a n k r u p t c y , i ns ol v e n c y , r e o r g a ni z ati o n, m or a t ori u m , li q u i d a t i on a n d other s i m il ar l a w s r e l a t i ng t o, o r a ff e c t i ng g e n e r a l l y , t he e n f o r c e m e n t o f a p p li ca bl e c r e d i t or s ' r i g h t s a n d r e m e di es.

 

( C ) SEC T I O N 9 O F T H E 1 9 34 AC T . D uri n g t he t e r m of t h i s A g r e e m e nt , t he I n v estor wil l comp l y wi t h t he p r o v i s i o n s of S ecti o n 9 o f t he 1 9 34 A c t , a n d t he r u l es pr o m u l g at e d t h e r e u n d e r , w i t h r es p e c t t o t r a n sa c t i o n s i n v o l v i n g t he C o m m on S t o c k . T h e I n v estor a grees n o t t o se l l t he C ompan y ' s s t ock sh o r t , e i t h e r d i r e c t l y or i n di r ectly t hrou g h it s a f f ili ates, p r i nc i p al s or a d v i sors, t he C ompan y ' s co m m on s t o c k d u r i ng t h e t e r m o f t h i s A g r e e m e nt .

 

( D ) ACCRED I T E D I NVES TOR. I n v estor i s an “ A c c r e di t ed I n v esto r ” as t h a t t e r m i s

d e f i n e d in R u l e 501( a ) o f R e g u l a t i on D o f t he 1 9 3 3 Ac t .

 

( E ) N O C O N F L I C T S . T he e x ec u t i o n , d eli v e r y a n d p e r f o rm a n ce o f t he Tra n sacti o n D oc u m e n t s by t he I nv e s t or a n d t he co n su m m ati o n by t he I n v estor of t he t r a n sa c t i o n s co n t emp l a t ed h e r e b y a n d t h e r e b y w i l l n o t ( 1) r e s u l t i n a v i o l ati o n of t he p ar t n e r sh i p a g r e e m e n t or oth e r o r g a ni z ati o n a l d o cumen t s o f t he I n v esto r , ( 2) co n f li ct w i t h, or co n s t i t u t e a m a t eri a l d e f a ul t ( or an e v e n t w h i ch w i t h n o t i ce or l a p se o f t i m e o r b o t h w o ul d b e come a m a t eri a l d e f a u l t ) u n d e r , or g iv e t o othe r s a n y r i g hts o f t e r m i n a t i o n , amendme n t , acc el era t i on or ca n ce ll ati o n o f , a n y m ate r i al a g r e e m e nt , co n tr a c t , i n d e n t ure m o r t g a g e , i n d e b t e d n e ss or i nst r u m e n t t o w h i ch t he I n v estor i s a pa r t y , o r t o t he I n v esto r ’ s k n o w l e d g e r es ul t i n a v i o l ati o n of a n y l a w , r u l e, r e g u l ati o n, orde r , j u d gment o r d e c r ee ( i nc l u di ng U n i t ed S t ates f e d eral a n d s t a t e sec u r i t i es l aws a n d r e g u l ati o ns) a p p li ca bl e t o t he I n v est o r or by w h i ch a n y proper t y or ass e t o f t he I n v est o r i s b o u n d or a ff e c t e d .

 

( F) N O VI O L A T I O NS . E x ce p t as d i s c l os e d i n S ch e d ul e 3 ( f ) , t he I n v estor i s n o t i n v i o l ati o n of a n y t e r m o f , or i n d e f a ul t u n d e r , t he p a rt n e r sh i p a g r e e m e n t o f oth e r o r g a ni z ati o n a l d o cumen t s o f t he I n v estor o r a n y m a t eri a l c o n tr a c t , a g r e e m e nt , m o r t g a g e , i n d e b t e d n e s s , i n d e n t ure, i ns t r u m e nt , j u d g m e nt , d e c r ee o r ord e r or a n y s t atu t e , r u l e or r e g u l ati o n a p p li ca bl e t o

 

 

ELED INVESTMENT AGREEMENT JULY.2014 7  
 

t he I n v est o r , e x ce p t f or co n f li c t s, d e f a ult s, t e r m i n a t i o n s, a m e n d m e n t s , acc el er a t i o n s , ca n ce ll ati o ns a n d v i o l ati o ns t h a t w o ul d n o t , i n di v i d u a l l y or i n t he a gg r e g at e , co n s t i t ute o r r eas o n a b l y be e x p e c t ed t o co n s t i t ute a m at e r i al a d v erse ef f e c t on t he I n v esto r . T he b u s i n e ss o f t he I n v estor i s n o t b ei ng co n d u c t e d , a n d sh al l n o t be co n d u c t e d , i n v i o l at i on o f a n y l a w , s t atu t e , ord i n a nc e , r u l e, o r d e r o r r e g u l ati o n o f a n y g o v e r nmen t al a u t h o r i t y or a g e nc y , r e g u l ato r y or se l f - r e g u l ato r y a g e n c y , or c o ur t , e x ce p t f o r v i o l ati o ns t he sa n c t i o n s f o r w h i ch e i t h e r , i n di v i d u a l l y or i n t he a g g r e g a t e , w o ul d n o t h a v e or r e a so n a bl y be e x p e c t ed t o h a v e a m a t eri a l a d v erse e f f e ct o n t he I n v est o r . E x ce p t as s p e c i f i ca ll y co n t emp l ated by t h i s A g r e e m e n t a n d as r e q u i r ed u n d e r t he

1 9 33 A ct or a n y sec u r i t i es l a w s of a n y s t ate s , t o t he I n v esto r ’ s k n o w l e dg e , t he I n v est o r i s n o t

r e q u i r ed t o o b t a i n a n y co n se n t , a u t h o r i z ati o n, p e rm i t or ord e r o f , o r m a k e a n y f ili ng o r r e g i s tr a t i on ( e x ce p t t he fili ng of a r e g i s t r ati o n s t a t eme n t as o u t li n e d i n t h e R e g i s t r ati o n Ri g h t s A g r e e m e n t ) w i t h, a n y c o u r t , g o v ern m e n t al a u t h ority or a g e n c y , r e g u l a t ory or se l f -r e g u l at o r y a g e n cy or oth e r t h i r d p a rt y i n order f or i t t o e x ec u t e, d eli v er or p e r f o r m a n y of i t s o bli g ati o ns u n d e r , o r co n t e m p l ated b y , t he E q u i t y L i ne T r a n sacti o n D oc u m e n t s i n acc o r d a nce w i t h t he t e r m s h e r e o f or t h e r e o f e x ce p t f o r t h o se co n se n t s, a u t h o r i z ati o ns, p e r m it s, ord e r s or f ili n g s as h a v e b e en o b t a i n e d or ef f e c t ed on or pr i or t o t he d a t e h e r e o f a n d are i n f u l l f orce a n d e f f e ct as o f t he d a t e h e r e o f . E x ce p t as d i sc l os e d i n S ch e d ul e 3 ( f ) , t he I n v estor i s u n a w are of a n y f acts o r c i r cum s t a n ces w h i ch m i g h t g i v e r i se t o any v i o l ati o n or d e f a ul t s e t f o r t h in t h i s S ecti o n 3 ( F ) .

 

( G ) O PP O R T UNI T Y TO D I S CUSS . T he I n v estor h a s r ec ei v ed a l l m ate r i a l s r e l ati n g t o t he C ompan y ' s b u s i n e ss, f i n a nce a n d o p era t i o n s w h i ch i t h a s r e q u e s t e d . T he I n v est o r h a s h a d an o p p o rt u ni t y t o d i scu s s t he b u s i n e s s , m a n a g e m e n t a n d f i n a nc i al a f f a i r s o f t he C ompany w i t h t he C o m p a n y ' s m a n a g e m e nt .

 

( H ) I NVES T M EN T PURP O SES . T he I n v estor i s p u r c h a s i ng t he S ec u r i t i es f or i t s o w n acc o u n t f or i n v est m e n t p urposes a n d n o t w i t h a v i ew t o w ards d i s tr i b u t i on a nd a g r e e s t o r es el l or othe r w i se d i sp o se of t he S ec u r i t i es so l e l y i n ac c orda n ce w i t h t he r e g i s t r ati o n pro v i s i o n s of t he

1 9 33 A ct ( o r p u r su a nt t o an e x emp t i on fr o m s u ch r e g i s tr a t i on p r o v i s i o n s ) .

 

(I ) N O RE GI S T R A TI O N A S A DEA L ER . T he I n v estor i s n o t a n d w il l n o t be r e q u i r e d t o be r e g i s t ered as a “ d e a l er” u n d e r t he 1 9 3 4 A c t , e i t h e r a s a r es ul t o f i t s e x ec u t i on a n d p e r f o rm a n ce o f i t s o bli g a t i o n s u n d e r t h i s A g r e e m e nt o r o t h e r w i se.

 

( J) G O O D S T AND I N G . T h e I n v estor i s a L i m i t ed P ar t n e r sh i p, d ul y organ iz e d , v a l i d l y e x i s t i ng a n d in g o od s t a n d i n g i n t he s t a t e o f D e l a w are.

 

( K ) T A X LIA B I L I TIE S . T he I n v e s t or u n d e r s t a n ds t h a t i t i s li a bl e f o r i t s ow n t ax li a bi l i t i es.

 

SEC T I O N 4 . REPRESEN T A T I O N S AN D W ARRAN T I E S O F T H E C O M PANY . E x c e pt a s s e t f o r t h i n t he S ch e d ul es a t t ac h ed h e r e t o, or as d i s c l os e d i n t he C ompan y ' s SE C D oc u m e n t s , t he C ompany r e p r es e n t s a n d w ar r a n t s t o t h e I n v est o r t h at :

 

( A ) O R G AN I Z A TI O N AN D Q UA LIF I C A TI O N . T he C ompany i s a corpora t i on d ul y o r g a ni z ed a n d v a li d l y ex i s t i ng i n g o o d s t a n d i n g u n d e r t he l a w s of t he St ate o f D e l a w are, US A a n d h a s t he r e q u i s i t e c o r p o r ate p o w er a n d a u t h o r i z ati o n t o o w n i t s prop e rt i es a n d t o c a rr y on i t s b u s i n e ss as n o w b e i ng co n d u c t e d . B o t h t he C o m p a ny a n d t he compan i es i t o w ns or co n tr o l s (“ S u b s i d i ari e s ” ) are d ul y q u al i f i ed t o do b u s i n e ss a n d a r e in g o o d s t a n d i n g in e v ery j uris di c t i on i n w h i ch i t s o w n e r sh i p of prope r t y or t he n a t ure o f t he b u s i n e ss co n d u c t ed by i t m a k es su c h q u al i f i cati o n n e cess a r y , e x ce p t t o t he e x t e n t t h a t t he f a il ure t o be so q u a li f i ed or be i n g o o d s t a n d i ng w o ul d n o t h a ve a M ate r i al A d v erse E ff e c t . A s us e d i n t h i s A g r e e m e nt , “ M ate r i al

 

 

ELED INVESTMENT AGREEMENT JULY.2014 8  
 

A d v erse E ff ec t ” m e a ns a n y m at e r i al a d v erse ef f ect on ( 1 ) t he prop e rt i e s, ass et s, o p e r ati o n s , r es ul t s o f o p er a t i o n s, o r f i n a nc i al co n d i t i on of t he C ompany a n d i t s S u b s i d i ari e s, i f a n y , t a k en as a w h ol e, ( 2) t he tr a n s a c t i o n s co n t emp l ated h e r e b y or b y t he a g r e e m e n t s a n d i nst r ume n t s t o be e n t ered i nto i n co n n e c t i on h e r e w i t h, or ( 3) t he a ut h o r i t y or a bi l i t y of t he C ompany t o p e r f o r m i t s o bli g ati o ns u n d e r t he E q ui t y L i ne T r a n sacti o n D o cumen t s oth e r t h a n as a r es ul t o f ( a) ch a n g e s a d v erse l y af f e c t i n g t h e U n i t ed S t a t es ec o n o m y ( so l o n g as t he C ompany i s n o t d i spropor t i o n a t e l y af f e c t ed t h e r e b y ) , ( b ) ch a n g e s a d v erse l y af f e c t i n g t h e i n d ust r y i n w h i ch t he C ompany o p era t es ( so l o n g as t he C ompany i s n o t d i spropo r t i o n ate l y af f ected t h e r e b y) , ( c) t he a n n o u n cement o r co n s u mm a t i on o f t he tr a n sact i o n s co n t emp l ated by t h i s A g r e e m e nt , a n d ( d) ch a n g es i n t he m a r ket p r i ce o f t he C o m m on S t o c k.

 

( B ) AU T H O R I Z A T I O N ; E N FOR C E M EN T ; CO M P LIA NC E W I T H O T HE R I NS T RU M EN T S .

 

( 1) T he C ompany h a s t he r e q u i s i t e c o r p o r a t e p o w e r a n d a u t h o r i t y t o e n t e r i nto a n d p e r f o r m t he E q u i t y L i ne T r a n s a c t i on D oc u m e n t s , a n d t o p e r f o r m i t s o bl i g ati o ns co n t emp l a t ed h e r e b y a n d t h e r e b y .

 

( 2) T he e x ec u t i on a n d d eli very of t he E q u i t y L i ne T r a n sacti o n D oc u m e n t s by t he C ompany a n d t he c o ns u mm a t i on by i t o f t he t r a n sacti o ns con t e m p l at e d h e r e b y a n d t h e r e b y , i nc l u di ng w i t h o ut li m i t ati o n t he r es e r v ati o n f or i ssu a nce a n d t he i ssu a nce o f t he S ec u r i t i es p u r su a nt t o t h i s A gree m e n t , h a v e b e en d u l y a n d v a li d l y a u t h o r i z ed b y t he C ompan y ' s B o a r d o f Di r ecto r s a n d n o f u rt h e r co n se n t o r a u t h o r i z ati o n i s r e q u i r ed by t he C ompan y , i t s B o a r d o f Di r ecto r s , o r i t s sh a r e h o l d e r s.

 

( 3) T he E q u i t y L i ne T r a n s acti o n D oc u m e n t s h a v e b e en d ul y a n d v a l i d l y e x ec u t ed a n d de li v ered by t he C ompan y .

 

( 4) T he E q u i t y L i ne Trans a c t i on D oc u m e nt s co n s t i t u t e t he v a li d a n d b i n di ng o bli g ati o ns o f t he C o m p a n y e n f o r ce a b l e a g a i n s t t he C ompany i n acc o r d a n ce w i t h t h ei r t e r m s , e x ce p t as such e n f o r c e a bili t y m ay be li m i t ed by g e n eral pri n c i p l es of e q u i t y or a p p li ca bl e b a nkrup t c y , i ns ol v e n c y , r e o r g a ni z ati o n, m o r at o r i um, li q u i d a t i on or s i m il ar l a w s r e l ati n g t o, o r a f f e c t i ng g e n e r a ll y , t he en f orc e m e n t o f c r e di t or s ' r i g hts a n d r e m e di es.

 

( C ) CAP I T A LIZ A T I O N . A s o f t he d a t e h e r e o f , t he a u t h o r i z ed ca pi t al s t o c k of t he C ompany co n s i s t s o f 2 5 0 , 0 0 0,000 sh a r es o f C o mm on S t o c k w i t h $ . 0001 p a r v a l ue p e r sh a r e, o f as o f Ju l y 15, 2014, 51 , 400,000 sh a r es w ere i ssu e d a n d o u t s t a n d i n g . E x ce p t as d i sc l os e d i n t he C ompan y ’ s p u b li c l y a v a i l a bl e f ili n g s w i t h t he SEC : ( 1) no sh a r es o f t he C ompan y ' s ca pi t al s t o c k are su b j e c t t o p r e emp t i v e r i g h t s or a n y o t h e r s i m il ar r i g hts o r a n y li e n s or e n cumb r a n ces s u f f e r ed or p e rm i tt ed by t he C ompan y ; ( 2) t h e r e a r e no o u t s t a n d i n g d e bt s ec u r i t i es; ( 3) t h e r e ar e no o u t s t a n d i n g sh a r e s o f ca pi t al s t o c k, o p t i o n s , w ar r a n t s, s c r i p, r i g h t s t o su b sc r i be t o , ca ll s or com m i tm e n t s o f a n y ch a r act e r w h a t so e v er r e l ati n g t o, or se c uriti e s o r r i g h t s co n v er t i b l e i n t o, a n y sh a r es o f ca pi t al s t o c k o f t he C o m p a ny or a n y o f i t s S u b s i d i ari e s, or c o nt r a c t s, co m m it m e nt s , u n d e r s t a n d i n g s o r a r r a n g e m e n t s by w h i ch t he C ompany or a n y of i t s S u b s i d i ari e s i s or m ay b e come b o u n d t o i ss u e a d d i t i o n al sh a r es o f ca pi t al s t o c k o f t he C ompany or a n y of it s S u b s i d i ari e s or o p t i o n s, w ar r a n t s, s c r i p, r i g h t s t o su b sc r i be t o , ca ll s or com m i tm e n t s o f a n y ch a r act e r w h a t so e v er r e l ati n g t o, o r sec u r i t i es o r r i g h t s co n v e r t i b l e i nto, a n y sh a r es o f ca p i t al s t o c k o f t he C ompany or a n y of i t s S u b s i d i ari e s; ( 4) t h e r e are no a gree m e n t s or a rr a n g e m e nt s u n d e r w h i ch t he C ompany or a n y of i t s S u b s i d i ari e s i s o bli g ated t o r e g i s t er t he sa l e o f a n y o f t h ei r sec u r i t i es u n d e r t he 1 9 33 A c t ( e x ce p t t he R e g i s t r ati o n Ri g h t s A g r e e m e nt ) ; ( 5 ) t h e r e are no o u t s t a n d i n g sec u r i t i es o f t he C ompany or a n y o f i t s S u b s i d i ari e s w h i ch co n t a i n a n y r e d e m pti o n

 

ELED INVESTMENT AGREEMENT JULY.2014 9  
 

or s i m il ar pro v i s i o n s, a n d t h e r e are no co n tr a c t s , co m m it m e nt s, u n d e r s t a n d i n g s o r ar r a n g e m e n t s by w h i ch t he C o m p a ny o r a n y o f i t s S u b s i d i ari e s i s or m ay b e come b o u n d t o r e d e e m a sec u r i t y of t h e C ompany or a n y of it s S u b s i d i ari e s; ( 6) t h e r e are no sec u r i t i es or i nst r ume n t s co n t a i n i ng a nt i- d il uti o n or s i m il ar p r o v i s i o n s t h a t w i l l be tr i g g e r ed by t he i ssu a nce o f t he S ec u r i t i es a s d e s c r i b e d i n t h i s A gre e m e nt ; ( 7) t he C o m p a ny d o es n o t h a v e a n y s t o c k a p prec i ati o n r i g h t s or “ p h a ntom s t o c k” p l a n s o r a g r e e m e n t s o r a n y s i m il ar p l an or a greeme n t ; a n d ( 8 ) t h e r e i s no d i sp ut e as t o t he c l ass i f i cati o n o f a n y sh a r e s o f t he C o m p a n y ' s ca pi t al s t o c k.

 

T he C ompany h a s f urn i s h e d t o t he I n v esto r , or t h e I n v estor h a s h a d acc e ss t hro u g h t h e SEC’ s E D G A R w e b s i t e t o, tr ue a n d cor r e c t co pi es of t he C ompan y ' s A rt i c l es of I nc o r p o r a t i o n , as amend e d a n d i n ef f e c t on t he d a t e h e r e o f ( t he “ A rt i c l es o f I nc o r p o r a t i o n ” ) , a n d t he C o m p a n y ' s B y - l a w s, as i n e ff e c t o n t he d a t e h e r e o f (t he “ B y - l a w s ”) , a n d t he t e rm s o f a l l sec u r i t i es co n v er t i b l e i nto or e x ercis a b l e f o r C o m m on S t o c k a n d t he m a t eri a l r i g h t s o f t he h ol d e r s t h e r eo f i n r es p e c t t h e r e t o.

 

( D ) I SSUANC E O F SHAR E S . T he C o m p a ny h a s r es e r v ed 5 , 0 0 0,000 S h a r es f o r i ssu a nce p u r su a nt t o t h i s A g r e e m e nt , w h i ch h a v e b e en d u l y a u t h o r i z ed a n d r es e r v ed f or i ssu a nce ( su b j ect t o a d j ust m e n t p u r su a nt t o t he C ompan y ' s co v e n a n t s et f o rt h i n S e c t i on 5(F) b el o w ) p u r su a n t t o th i s A greeme n t . U p o n i ss u a n ce i n acc o r d a nce w i t h t h i s A greeme n t , t h e S ec u r i t i es w i l l be v a l i d l y i ssu e d, f u ll y p ai d f or a n d n o n - ass e ssa bl e a n d fr e e fr o m a l l t a x es, li e n s a n d ch a r g e s w i t h r es p ect t o t he i ssue t h e r e o f . I n t he e v e n t t he C om p a n y ca n n o t r e g i s t e r a s u f f i c i e n t n u m b e r o f S h a r es f or i ssu a nce p u r su a nt t o t h i s A g r e e m e nt , t h e C ompany w i l l use i t s b e st e ff o r t s t o a u t h o r i z e a n d r es e r v e f or i ss u a n ce t he n u m b e r o f S h a r es r e q u i r ed f or t he C ompany t o p er f o r m i t s o bli g ati o ns h e r e u n d er as so o n as r e a so n a bl y pr a c t i ca bl e.

 

( E ) N O C O N F L I C T S . T he e x ec u t i o n , d eli v ery a n d p e r f o rm a n ce o f t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s by t he C ompany a n d t he co n su m m ati o n by t he C o m p a ny o f t he tr a n sa c t i o n s co n t e m p l a t ed h e r e b y a n d t h e r e b y wil l n o t (I ) r es ul t i n a v i o l ati o n of t he A rt i c l es o f I nc o r p o r ati o n, a n y C er t i f i cate o f D es i g n a t i o n s , P r e f erences a n d R i g h t s o f a n y o u t s t a n d i ng s e r i es o f p r e f e rr ed s t o c k o f t he C ompany or t he B y - l a w s; o r ( I I ) co n f li ct w i t h, or co n s t i t ute a m at e r i al d e f a ul t ( or an e v e n t w h i ch w i t h n o t i ce or l a p se o f t i m e o r b o t h w o ul d b e come a m a t eri a l d e f a u l t ) u n d e r , or g i v e t o othe r s a n y r i g hts o f t e r m i n a t i o n , amendme n t , acc el era t i on or ca n ce ll ati o n o f , a n y m ate r i al a g r e e m e nt , co n tr a c t , i n d e n t ure m o r t g a g e , i n d e b t e d n e ss or i nst r u m e n t t o w h i ch t he C ompany or a n y of i t s S u b s i d i a r i es i s a p a rt y , or t o t he C ompan y ' s kn owl e d g e r es ul t i n a v i o l ati o n of a n y l a w , r u l e, r e g u l ati o n , orde r , j u d g m e n t or d e c r ee ( i nc l u di ng U n i t ed S t ates f e d e r al a n d s t ate sec u r i t i es l a w s a n d r e g u l ati o ns a n d t he r u l es a n d r e g u l ati o ns o f t he P r i nc i p a l M ar k et or pri n c i p a l sec u r i t i es e x ch a n g e or tr a di n g m a r k e t on w h i ch t he C om m on S t ock i s t r a d ed or li s t e d ) a p p li ca bl e t o t he C ompany or a n y of i t s S u b s i d i ari e s or by w h i ch a ny proper t y or ass e t o f t he C ompany or a n y of i t s S u b s i d i ari e s i s b o u n d or af f ecte d . E x ce p t as d i sc l os e d i n S ch e d ul e

4(e ) , n ei t h e r t he C omp a ny n o r i t s S u b s i d i ari e s i s i n v i o l ati o n of a n y t erm o f , or i n d e f a ul t u n d e r , t he A r t i c l es o f I nc o r p o r a t i o n , a n y C er t i f i c a t e o f D es i g n a t i o n s , P r e f eren c es a n d Ri g h t s o f a n y o u t s t a n d i n g seri e s o f p r e f e r r ed s t o c k o f t he C ompany or t he B y - l a w s or t h ei r o r g a ni z ati o n a l ch a rt e r or b y - l a w s, r es p ecti v e l y , or a n y c o nt r a c t , a g r e eme n t , m o r t g a g e, i n d e b t e d n e s s , i n d e n t ure, i ns t r u m e nt , j u d g m e nt , d e c r ee o r ord e r or a n y s t atu t e , r u l e or r e g u l ati o n a p p li ca bl e t o t he C ompany or i t s S u b s i d i ari e s, e x ce p t f o r p o ss i b l e co n f li c t s, de f a ul t s, t e r m i n a t i o n s , amendme n t s , acc el era t i o n s, ca n ce ll ati o ns a n d v i o l ati o ns t h a t w o ul d n o t i n di v i d u a l l y or i n t he a g gr e g ate h a v e or co n s ti t ute a M ate r i al A d v erse E ff ec t . T he b u s i n e ss o f t he C ompany a n d i t s S u b s i d i ari e s i s n o t b ei ng co n d u c t e d , a n d sh al l n o t be co n d u c t e d , i n v i o l at i on o f a n y l a w , s t at u t e , ord i n a nc e , r u l e, o r d e r o r r e g u l ati o n o f a n y g o v e r nmen t al a u t h o r i t y or a g e nc y , r e g u l ato r y or se l f- r e g u l ato r y a g e n c y , or co u r t , e x ce p t f or p o ss i b l e v i o l ati o ns t he sa n c ti o n s f or w h i ch e i t h e r i n d i v i d u a l l y or i n t he a g g r e g ate w o ul d n o t h a v e a M ate r i al A d v erse E ff ec t . E x ce p t as sp e c i f i ca ll y

 

ELED INVESTMENT AGREEMENT JULY.2014 10  
 

co n t emp l a t ed by t h i s A g r e e m e n t a n d as r e q u i r ed u n d e r t he 1 9 33 A ct or a n y sec u r i t i es l a w s of a n y s t ates, t o t he C om p a n y ' s k n o w l e dg e, t he C ompany i s n o t r e q u i r ed t o o b t a i n a n y co n se n t , a u t h o r i z ati o n, p e r m i t o r order o f , or m a k e a n y f ili ng o r r e g i s tr a t i on ( e x ce p t t he f ili ng o f a r e g i s tr a t i on s t a t eme n t a s o u t li n e d i n t he R e g i s t r ati o n Ri g hts A greeme n t b e t w e e n t he P ar t i es) wi t h, a n y co u r t , g o v er nm e n t al a u t h o r i t y or a g e n c y , r e g u l at o r y or se l f -r e g u l ato r y a g e ncy or oth e r t h i r d p a r t y i n order f or i t t o e x ec u t e , d eli v er or p e r f o r m a n y o f i t s o bli g ati o ns u n d e r , o r co n t emp l a t ed b y , t he E q ui t y L i ne T r a n sa c t i on D o cumen t s i n acc o r d a nce wi t h t he t e r m s h e r e o f or t h e r e o f . Al l co n se n t s , a u t h o r i z ati o ns, p e r m it s, o r d e r s , f ili n g s a n d r e g i s t r ati o ns w h i ch t he C ompany i s r e q u i r ed t o o b t a i n p u r su a n t t o t he preced i n g se n t e n ce h a v e b e en o b t a i n e d or e f f e c t ed on or pri o r t o t he d a t e h e r e o f a n d are i n f u l l f orce a n d e ff e c t as of t he d a t e h e r eo f . E x ce p t as d i sc l os e d i n S ch e d ul e 4(e ) , t he C o m p a ny a n d i t s S u b s i d i ari e s are u n a w are o f a n y f acts o r c i r c u m s t a n ces w h i ch m i g h t g i v e r i se t o a n y v i o l ati o n or d e f a ul t o f a n y of t he f or e g o i n g. T he C ompany i s n o t , a nd wil l n o t b e , i n v i o l at i on of t he li s t i ng r e q u i r e m e n t s o f t he P r i nc i p a l M ar k et as i n e ff e c t on t h e d a t e h e r e o f a n d on e a ch o f t he Cl os i ng D a t es and i s n o t a w are o f a n y f acts w h i ch w o u l d r e a so n a bl y l e a d t o d eli s t i ng o f t he C o m m on S t o c k by t he P r i nc i p a l M ar k et i n t he f o r es e e a b l e f u t ur e .

 

( F) SE C D O CU M EN T S ; FIN ANC I A L S T A T E M EN T S . A s o f t he d a t e h e r eo f , t he C ompany h a s f il ed a l l r e p or t s , sch e d ul es, f o rm s , s t ate m e nts a n d other d oc u m e nt s r e q u i r ed t o be f il ed by i t wi t h t he SE C p u r su a nt t o t he r e p or t i n g r e q u i r e m e nt s o f t he 1 9 34 A ct ( a l l o f t h e f or e g o i n g f il ed pri o r t o t h e d a t e h e r e o f a n d a l l ex hi b i t s i nc l u d ed t h e r e i n a n d f i n a nc i al s t at e m e n t s a n d sch e d ul es t h e r e t o a n d d o cumen t s i nc o r p o r ated by r e f e r e n ce t h e r e i n b ei ng h e r e i n a f t e r r e f e rr ed t o as t he " SE C D oc u m e n t s " ) . T he C ompany h a s d el i v ered t o t he I n v estor o r i t s r e p r es e n t ati v es, or t h e y h a v e h a d acc e ss t hrou g h t he SEC’ s ED G A R w e b s i t e t o, t r ue a n d comp l ete co pi es o f t he SE C D oc u m e n t s. A s o f t h e i r r es p ecti v e f ili ng d a t e s , t he SE C D oc u m e n t s comp li ed i n a l l m at e r i al r es p e c t s w i t h t he r e q u i r emen t s o f t he 1 9 34 A ct a n d t he r u l es a n d r e g u l ati o ns o f t he SE C p r omu l g ated t h e r e u n d e r a p pli ca bl e t o t he SE C D o cumen t s, a n d n o ne o f t he SE C D oc u m e n t s , at t he t i m e t h e y w ere f il ed wi t h t he SEC , co n t a i n e d a n y u n tr ue s t at e m e n t o f a m a t eri a l f a c t o r o m i tt ed t o s t a t e a m a t eri a l f a c t r e q u i r ed t o be s t a t ed t h ere i n or n e cess a r y t o m a k e t he s t at e m e nt s t h ere i n, i n li g h t o f t he c i r c ums t a n ces u n d e r w h i ch t h e y w ere m a d e, no t m i s l e a d i n g . A s o f t h ei r r e sp e c t i v e da t es, t he f i n a n c i al s t at e m e n t s o f t he C o m p a ny i nc l u d e d in t he SE C D oc u m e n t s c o m p l i ed as t o f o r m i n a l l m at e r i al r es p e c t s w i t h a p p li ca bl e acc o u n t i ng r e q u i r eme n t s a n d t he p u bli sh e d r u l es a n d r e g u l ati o ns o f t he SE C w i t h r es p ect t h e r et o . S u c h f i n a nc i al s t a t e m e n t s h a v e b e en prepared i n ac c ordance w i t h g e n era ll y a cce p t ed acc o u n t i n g pri n c i p l es, a n d a u d i t ed by a f i r m t h a t i s a m emb e r a m emb e r o f t he P u bli c C ompan i es A cco u nti n g O v ersi g h t B o a r d (" PCA O B " ) co n s i s t e n t l y a p p li e d , d u r i ng t he p e r i o d s i n v o l v ed ( e x ce p t ( I ) as m ay be o t h e r w i se i n di cated i n such f i n a nc i al s t at e m e n t s or t he n o t es t h e r e t o, o r ( I I ) i n t he case o f u n a u d it ed i nte r i m s t a t eme n t s , t o t he e x t e n t t h e y m ay e x c l u d e f o o t n o t e s or m ay be co n d e ns e d or sum m ary s t ate m e n t s) a n d f a i r l y present i n a l l m ate r i al r es p ec t s t he f i n a nc i al p o s i t i on o f t he C o m p a ny as o f t he d a t es t h e r e o f a n d t he r es ult s o f it s o p e r ati o ns a n d cash f l o w s f or t he p e r i o d s t h e n e n d ed ( su b j e c t , i n t he case of u n a u d i t ed s t at e m e n t s, t o n o r m al y e a r - end a u d i t a d j u s tm e n t s ) . N o o t h e r w r i tt en i n f o rm a t i on p r o v i d e d by or on b e h al f of t he C o m p a ny t o t he I n v es t or w h i ch i s n o t i n c l u d ed i n t he SE C D oc u m e n t s , i nc l u di n g , w i t h o ut li m i t ati o n, i n f o r m ati o n r e f e rr ed t o in S ecti o n 4 (D ) o f t h i s A greeme n t , co n t a i ns any u n tr ue s t at em e n t o f a m a t eri a l f act o r omits t o s t ate a n y m at e r i al f a c t n e cess a r y t o m a k e t he s t at e m e n t s t h e r e i n, i n t he li g ht of t he c i r cum s t a n ce und e r w h i c h t h e y are or w ere m a d e, n o t m i s l e a d i n g . N e i t h e r t he C ompany n o r a n y o f i t s S u b s i d i ari e s or a n y of t h e i r o f f i cer s , d i r e c t ors, e m p l o y e e s or a g e n t s h a v e pro v i d e d t he I n v estor w i t h a n y m ate r i a l , n o n p u bli c i n f o rm a t i on w h i ch w as n o t p u b li c l y d i sc l os e d pri o r t o t he d a t e h e r e o f a n d a n y m ate r i a l , n o n p u bli c i n f or m a t i on pro v i d e d t o t he I n v estor by t he C ompany or i t s S u b s i d i ari e s or a n y of t h ei r o f f i cer s , d i r e c t or s , emp l o y e e s or a g e n t s pr i or t o a n y Cl os i ng D ate sh al l be p u b li c l y d i sc l os e d by t he C o m p a ny pri o r t o such Cl os i n g D a t e.

 

ELED INVESTMENT AGREEMENT JULY.2014 11  
 

( G ) ABSENC E O F C E R T A I N CHAN G E S . E x ce p t as oth e r w i se set f o rt h i n t he SE C D oc u m e n t s , t he C o m p a ny d o es n o t i ntend t o c h a n g e t he b u s i n e ss o p e r ati o ns o f t he C ompany i n a n y m ate r i al w a y . T h e C o m p a ny h a s n o t t ak e n a n y s t e p s, a n d d o es n o t cur r e n t l y e x p e ct t o t a k e a n y s t e p s, t o se e k pro t e c t i on p u r su a nt t o a ny b a n k r u p t cy l a w n o r d o e s t he C ompany or i t s S u b s i d i ari e s h a v e a n y k n o w l e d g e or r e a son t o b eli e v e t h a t i t s c r e d i t ors i n t e n d t o i n i t i ate i n v o l un t ary b a nkrup t cy procee di n g s.

 

( H ) ABSENC E O F LIT I G A T I O N AND /O R REGU L A T O R Y PR O CEED I N G S . E x ce p t as set f o rt h i n t he SE C D oc u m e nt s, t h e r e i s no acti o n, su i t , p r oc e e di n g , i n q u i r y or i n v esti g ati o n b e f ore o r by a n y co u rt , p u b li c b o ard, g o v ern m e nt a g e n c y , se l f - r e g u l at or y or g a ni z ati o n or b o dy p e n di ng or, t o t he k n o w l e d g e o f t he e x ec u t i v e of f i c e r s o f C ompany or a n y of i t s S u b s i d i ari e s, t hre a t e n ed a g a i n s t or a ff e c t i ng t he C ompan y , t he C om m on S t o c k o r a n y of t he C ompan y ' s S u b s i d i ari e s or a n y of t he C ompan y ' s or t he C o m p a n y ' s S u b s i d i ari e s' o f f i ce r s or d i r ect o r s i n t h ei r ca p a c i t i es as suc h , i n w h i ch an a d v erse d e c i s i on co ul d ha v e a M ate r i al A d v erse E f f e c t .

 

(I ) ACKN O W L E D G M E N T R E G ARD I N G I NVES TOR'S PURCHAS E O F SHARES . T he C ompany ac k n o w l e d g es a n d a g r e e s t h a t t he I n v estor i s acti n g so l e l y i n t h e ca p ac i t y of an a r m ' s l e n g t h p u r ch a s e r w i t h r e sp e ct t o t he E q u i t y L i ne Trans a c t i on D oc u m e n t s a n d t he tr a n sa c t i o n s co n t emp l a t ed h e r e b y a n d t h e r e b y . T he C ompa n y f ur t h e r a c k n o w l e d g es t h a t t he I n v estor i s n o t acti n g a s a f i n a nc i al a d v i sor or f i d u c i ary o f t he C o m p a ny ( or i n a n y s i m il ar ca p ac i t y ) w i t h r es p e c t t o t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s a n d t he tr a n sacti o ns co nt emp l ated h e r e b y a n d t h e r e b y a n d a n y a d v i ce g i v en by t he I n v estor or a n y of i t s r e sp e c t i v e r e p r es e nta t i v es or a g e n t s i n co n n e c t i on w i t h t he E q u i t y L i ne T r a n sa c t i on D oc u m e nt s a n d t he tr a n s acti o ns co n t e m p l at e d h e r e b y a n d t h e r e b y i s m ere l y i n c i d e ntal t o t he I n v esto r' s p u r ch a se o f t he S ec u r i t i es, a n d i s n o t b ei ng r e li ed on by t he C ompan y . T he C ompa n y f ur t h e r r e p r e se n t s t o t he I n v estor t h a t t h e C ompan y ' s d e c i s i on t o en t er i nto t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s h a s b e en b a sed so l e l y on t he i n d e p e n d e nt e v a l u a t i on by t he C ompany a nd i t s r e p r e se n t a t i v es.

 

( J) N O UND I SC L OSE D EVEN T S , LI A B I L I T I E S , DEVE LO P M EN T S O R C I RC U M S T ANCES . E x c e p t as set f o rt h i n t he S E C D oc u m e n t s , a s o f t he d a t e h e r e o f , no e v e nt , li a bi l i t y , d e v e l o p m e n t or c i r cum s t a n ce h a s occ u rr ed or e x i s t s, o r t o t he C o m p a n y ' s k n o w l e d g e i s co n t emp l a t ed t o occ u r , wi t h r es p ect t o t he C ompany or i t s S u b s i d i ar i es or t h ei r r es p e c t i v e b u s i n e ss, prop e rt i e s , as s ets, p r os p e c t s, o p e r ati o n s or f i n a nc i al co n d i t i o n , t h a t w o ul d be r e q u i r ed t o be d i sc l os e d by t he C ompany u n d e r a p p li c a b l e sec u r i t i es l a w s on a r e g i s tr a t i on s t at e m en t f il ed w i t h t he S E C r e l at i ng t o an i ssu a nce a n d sa l e b y t he C omp a ny of i t s C om m on S t o c k a n d w h i ch has n o t b e en p u b li c l y a n n o u n ce d .

 

( K ) E M P LOY E E RE L A TI O NS . N e i t h e r t he C o m p a ny n o r a n y of i t s S u b s i d i ari e s i s i n v o l v ed i n a n y u ni on l a b or d i sp u t e n o r , t o t h e k n o w l e d g e o f t he C o m p a ny or a n y o f it s S u b s i d i ari e s, i s a n y such d i sp u t e t hre a t e n e d . N e it h e r t he C ompany n o r a n y of i t s S u b s i d i ari e s i s a p a rt y t o a co ll ecti v e b a r g ai n i ng a greeme n t , a n d t he C ompany a n d i t s S u bs i d i ari e s b eli e v e t h a t r e l ati o ns w i t h t h ei r emp l o y e e s are g o o d . N o e x ec u t i v e of f i cer ( as d e f i n e d i n R u l e 5 0 1 ( f ) o f t h e

1 9 33 A c t ) h a s n o t i f i ed t h e C ompany t h a t such o ff i cer i ntends t o l e a v e t he C ompan y ' s emp l oy or othe r w i se t e r m i n a t e such o f f i c e r ' s e m p l o y m e n t w i t h t he C ompan y .

 

( L) I N T E L LEC T UA L P R O PER T Y R I G H T S . T he C ompany a n d i t s S u b s i d i ari e s o w n or p o ssess a d e q u a t e r i g h t s or li ce n ses t o use a l l tr a d ema r k s , t r a d e n a m e s, s er v i ce m a r k s, s e r v i ce m a r k r e g i s t r ati o n s , ser v i ce n a m es, p a t e n t s, p a t e n t r i g h t s , co p y r i g h t s, i n v e n t i o n s, li ce n ses, a p pro v a l s, g o v ern m e n t al a u t h o r i z ati o ns, t r a d e s ecre t s a n d r i g h t s n e ce s sary t o co n d u ct t h ei r r es p ecti v e b u s i n e sses a s n o w co n d u c t e d . E x ce p t as set f o rt h i n t he SE C D oc u m e n t s, n o ne o f

 

 

ELED INVESTMENT AGREEMENT JULY.2014 12  
 

t he C ompan y ' s tr a d e m a r k s, tr a d e n a m e s , s e r v i ce m a r ks, ser v i ce m a r k r e g i s tr a t i o n s, ser v i ce n a m es, p a t e n t s, p a t e n t r i g ht s , co p y r i g h t s , i n v e n t i o n s, li ce n ses, a p p r o v a l s, g o v ern m e n t a u t h o r i z ati o ns, tr a d e s e c r ets o r other i nte ll ect u al proper t y r i g h t s n e cess a r y t o co n d u ct it s b u s i n e ss as now or a s p r o p os e d t o be co n d u c t ed h a v e e x p i r ed or t e r m i n at e d , or are e x p e c t ed t o e x p i r e or t er m i n a t e w i t h i n t w o ( 2) y e a r s f r o m t he d ate o f t h i s A greeme n t . T he C ompany a n d it s S u b s i d i ari e s do n o t h a v e a n y k n owl e d g e of a n y i nf r i n g eme n t by t he C ompany or i t s S u b s i d i ari e s o f t r a d em ar k, t r a d e n a m e r i g h t s , p a t e n t s , p a t e n t r i g h t s, co p y r i g h t s, i n v e n t i o n s, li ce n ses, ser v i ce n a m es, s e r v i ce m a r k s , s er v i ce m ark r e g i s tr a t i o n s , tr a d e se c r et or o t h e r s i m il ar r i g h t s o f oth e r s , or o f a n y such d e v e l o p m e n t o f s i m il ar or i d e ntic a l tr a d e secr e t s or t e c h ni cal i n f o r m ati o n by othe r s a n d, e x ce p t as s et f o rt h i n t he SE C D o c umen t s , t h e r e i s no c l a i m , acti o n o r p roc e e di n g b ei ng m a d e o r bro u g h t a g a i ns t , or t o t he C o m p a n y ' s k n o w l e d g e, b ei n g t hrea t e n ed a g a i ns t , t he C ompany or i t s S u b s i d i a r i es r e g ard i n g tr a d e m a rk , tr a d e n a m e, p a t e nt s, p atent r i g h t s, i n v e n t i o n , co p y r i g h t , li ce n se, ser v i ce n a m es, s e r v i ce m arks, ser v i ce m a r k r e g i s t r a t i o n s, t r a d e secr e t or other i n fr i n g eme n t ; a n d t he C o m p a ny a n d i t s S u b s i d i ari e s are u n aw are of a n y f a c t s o r c i r cum s t a n ces w h i ch mi g h t g i v e r i se t o a n y of t h e f o r e g o i n g . T he C omp a ny a n d i t s S u b s i d i ari e s h a v e t a k en c o m m erci all y r e a so n a bl e sec u r i t y m e a sures t o pr o t ect t he s ecrec y , co n f i d e n t i a li t y a n d v a l ue of a l l o f t h e i r i n t e ll ectual prop e rt i e s .

 

( M ) ENV I R O N M EN T A L L A W S . T he C ompany a n d i t s S u b s i d i ari e s ( I ) a r e, t o t h e k n o w l e d g e o f t he C o m p a ny a n d i t s S u b s i d i ari e s, i n c o m p li a n ce w i t h a n y a n d a l l a p p li ca bl e f ore i g n, f e d era l , s t ate a n d l oc a l l a w s a n d r e g u l ati o ns r e l ati n g t o t he p r ot e c t i on o f h u m an h e a lt h a n d sa f e t y , t he e n v i r o n m e n t or h a z ardous o r t o x i c su b s t a n ces or w astes, p oll utan t s or co n t ami n a n t s (" E n v i r o n m e n t al L a w s ") ; ( I I ) h a v e, t o t he k n o w l e d g e o f t he C ompan y , r ec ei v ed a l l p e rm i t s , li ce n ses or oth e r a p pro v a l s r e q u i r e d o f t h e m u n d e r a p p li ca bl e E n v i r o n m e n t al L a w s t o co n d u ct t h ei r r es p e c t i v e b u s i n e sses; a n d (I I I ) are i n comp li a n ce, t o t he k n o w l e d g e of t h e C ompan y , wi t h a l l t er m s a n d co n d i t i o n s of a n y s uch p e rm it , li ce n se or a p pro v al w h e r e, i n e a ch o f t he t hree ( 3 ) f or e g o i ng cas e s , t he f a il ure t o so comp l y w o ul d h a v e , i n di v i d u a l l y or i n t he a g gr e g at e , a M ate r i al A d v erse E f f e c t .

 

( N ) T I T L E . T he C omp a ny a n d i t s S u b s i d i ari e s h a v e g o o d a n d m a r k et a b l e t i t l e t o a l l p e r so n al prop e rt y o w n e d by t h e m w h i ch i s m a t eri a l t o t he b u s i n e ss o f t he C ompany a n d i t s S u b s i d i ari e s, i n e a ch ca s e fr ee a n d c l e a r o f a l l li e ns, e n cum b r a n ces a n d de f ects e x ce p t such as are d e s c r i b e d i n t he S E C D oc u m e n t s or s u ch as do n o t m a t er i a ll y af f ect t he v a l ue of such prope r t y a n d do n o t i nte rf ere w i t h t he use m a d e a n d propos e d t o be m a d e of such p r o p e r t y by t he C ompany or a n y of it s S u b s i d i ari e s. A ny r e a l prope r t y a n d f ac ili t i es h e l d u n d e r l e a se by t he C ompany or a n y of it s S u b s i d i ari e s a r e h el d by t h e m u n d e r v a li d, su b s i s t i ng a n d e n f o r ce a b l e l e a ses w i t h such e x ce p t i o n s as are n o t m a t eri a l a n d do n o t i nt er f e r e w i t h t he use m a d e a n d propos e d t o be m a d e o f such prop e rt y a n d b uil d i n g s by t he C ompany a n d i t s S u b s i d i ari e s .

 

( O ) I NSURANCE . E ach o f t he C ompan y ' s S u bs i d i ari e s are i ns u r ed by i ns u r ers o f r ec o g n i z ed f i n a nc i al r es p o n s i b ili t y a g a i nst such l oss e s a n d r i s k s a n d i n such amounts as m a n a g eme n t o f t he C ompany r e a so n a bl y b e l i e v es t o be prude n t a nd cust o m ary i n t he b u s i n e sses i n w h i ch t he C ompa n y a n d i t s S u b s i d i ari e s are e n g a g e d . N e it h e r t he C ompany n o r a n y of i t s S u b s i d i ari e s h a s b e en r e f us e d a n y i ns u r a n ce co v era g e so u g h t or a p p li ed f or a n d n ei t h e r t he C o m p a ny n o r i t s S u b s i d i ari e s h a s a n y r e a son t o b eli e v e t h a t i t w i l l n o t be a bl e t o r e n ew i t s e x i s t i ng i ns u r a n ce co v era g e as a n d w h e n such co v era g e e x p i r es or t o o b t a i n s i m il ar co v era g e fr om s i m il ar i n sure r s as m ay be n e c e ssary t o co n t i n u e i t s b u s i n e ss at a cost t h a t w o u l d not h a v e a M ate r i al A d v erse E f f e c t .

 

( P ) RE G U L A T O R Y PER M I T S . T he C o m p a ny a n d i t s S u b s i d i ari e s h a v e i n f u l l f or c e a n d

 

ELED INVESTMENT AGREEMENT JULY.2014 13  
 

e f f e c t a l l c e rt i f i c a t es, a p pro v a l s, a u t h o r i z ati o ns a n d p e r m i t s fr o m t he a p p r o p r i ate f e d e r a l , s t a t e, l oc a l or f ore i g n r e g u l at or y a u t h o r i t i es a n d comparab l e f ore i g n r e g u l at o r y ag e n c i e s , n e cess a r y t o o w n, l e a se or o p er at e t h ei r r es p e c t i v e proper t i es a n d ass e t s a n d co n d u ct t h ei r r e sp e c t i v e b u s i n e sses, a n d n ei t h e r t he C ompany n o r a n y such S u b s i d i ary h a s r ec ei v ed a n y n o t i ce of procee di n g s r e l ati n g t o t he r e v oc a t i on or m o d i f i c a t i on o f a n y such cer t i f i c a t e , a p pro v a l , a u t h o r i z ati o n or p e r m i t , e x ce p t f o r such ce r t i f i cat e s, a p pro v a l s, a u t h o r i z ati o ns or p e r m i t s w h i ch i f n o t o b t a i n e d, or s u ch r e v oc a t i o n s or m o d i f i cati o ns w h i ch, w o u l d n o t h a v e a M ate r i al A d v erse E ff e c t .

 

( Q ) I N T ERNA L ACC OU N T I N G C O N T R O L S . T h e C ompany a n d e a ch of i t s S u b s i d i ari e s m a i nta i n a s y s t em o f i nte r n a l acc o u n t i n g co nt r o l s suf f i c i e n t t o pro v i de r e a so n a bl e ass u r a n ce t h a t ( I ) tr a n s a c t i o n s a r e e x ec u t ed i n acc o r d a nce wi t h m a n a g e m e n t ' s g e n e r al or sp e c i f i c a u t h o r i z ati o ns; ( I I ) tr a n s acti o ns are r ec o r d e d as n e cess a r y t o p e r m i t p r e p ara t i on o f f i n a nc i al s t at e m e nt s i n co n f o r m i t y wi t h g e n e r a ll y acc e pted acc o u n t i ng pri n c i p l es by a f i r m w i t h m emb e r sh i p t o t he PC A O B a n d t o m a i nta i n as s et acc o u n t a bili t y ; ( I I I ) r e as o n a b l e co n tr o l s t o s a f e g u a r d ass e t s are i n p l ac e ; a n d (I V ) t he r e c o r d e d acc o u n t a bili t y f or a s sets i s compared w i t h t he e x i s t i ng a s sets at r e as o n a b l e i nte r v a l s a n d a p propri a t e acti o n i s t a k e n w i t h r es p ect t o a n y d i ff erenc e s.

 

( R ) N O M A T ER I A L L Y ADVERS E C O N T RAC T S , E T C . N e i t h e r t he C om p a n y n o r a n y o f i t s S u b s i d i ari e s i s su b j ect t o a n y ch a rt e r , c o r p o r ate or oth e r l e g al r es t r i c t i o n , or a n y j u d g m en t , d e c r ee or o r d e r w h i ch i n t he j u d gment o f t he C o m p a n y ' s of f i cers h as or i s e x p e c t ed i n t he f ut u r e t o h a v e a M ate r i al A d v erse E f f e c t . N e i t h e r t he C o m p a ny n o r a n y of i t s S u bs i d i ari e s i s a p a rt y t o a n y co n tr a c t or a g r e e m e nt w h i ch i n t he j u d g m e n t o f t he C o m p a n y ' s o ff i c e r s h a s or i s e x p e c t ed t o ha v e a M ate r i al A d v erse E ff ec t .

 

( S ) T A X S T A T US . T he C ompany a n d e a ch o f i t s S u b s i d i ari e s h a s m a d e or f il ed a l l U n i t ed S t ates f e d eral a nd s t ate i n c ome a n d a l l other t ax r etu r n s , r e p or t s a n d d e c l ara t i o n s r e q u i r ed by a n y j uris di c t i on t o w h i ch i t i s su b j ect ( u nl ess a n d o nl y t o t he e x t e n t t h a t t he C ompany a n d e a ch o f i t s S u b s i d i ari e s h a s s et as i de on i t s b o o ks pro v i s i o n s r e a so n a bl y a d e q u a t e f o r t he p a y m e nt o f a l l u n p ai d a n d u n r e p o rt ed t a x es) a n d h a s p a i d a l l t a x es a n d other g o v ern m e n t al ass e s s m e nts a n d ch a r g es t h a t a r e m at e r i al i n a m o u n t , sh ow n or d e t e r m i n e d t o b e d u e on such r etu r n s , r e p o rt s a n d d e c l ar a t i o n s, e x ce p t t h o se b ei ng co nt ested i n g o o d f a i t h a n d h a s set as i de on i t s b o o k s p r o v i s i on r e a so n a b l y a d e q u a t e f or t he p a y m e n t o f a l l t a x es f o r p e r i o d s su b se q u e n t t o t he p e r i o d s t o w h i ch su c h r etu r n s , r e p o r t s or d e c l ara t i o n s a p p l y . T h e r e are no u n p ai d t a x es i n a n y m ate r i al amount c l a i m ed t o be d u e by t he t a x i ng a u t h o r i t y o f a n y j uris di c t i o n , a n d t he o f f i c ers o f t he C o m p a ny k n o w of no b a s i s f or a n y su c h cl ai m .

 

( T) CER T A I N T RANSAC TI O NS . E x ce p t as s e t f o rt h i n t he SE C D oc u m e n t s f il ed at l e a s t t en ( 1 0 ) d a y s pri o r t o t he d a t e h e r e o f a n d e x ce p t f or a r m ' s l e n gth t r a n sact i o n s p u r su a n t t o w h i ch t he C ompany m a k es p a y m e n t s i n t he o r d i n a r y co u r se o f b u s i n e ss u p on t e rm s no l ess f a v orab l e t h a n t he C ompany co ul d o b t a i n fr om d i s i nte r e s t e d t h i r d p a rt i es a n d other t h a n t he g r a n t o f s t o c k o p t i o n s d i sc l os e d i n t he SE C D oc u m e n t s o r s t o c k o p t i o n s g r a n t ed i n t he f utu r e as co n t e m p l at e d by cur r e n t compe n sati o n a g r e e m e n t s or p l a n s d i sc l os e d i n t he SE C D oc u m e nt s, n o ne o f t he o f f i ce r s, d i r e c t or s , or e m p l o y e e s of t he C ompany i s presently a p a rt y t o a n y tr a n sacti o n wi t h t he C ompany or a n y o f i t s S u b s i d i ari e s ( oth e r t h an f or ser v i ces as e m p l o y e e s, of f i cers a n d d i r ecto r s ) , i nc l u di ng a n y co n tr a c t , a g r e eme n t or other a r r a n g eme n t pro v i d i ng f or t he f u r n i sh i n g o f ser v i ces t o o r b y , p r o v i d i ng f o r r e n t al o f r e a l or p e r so n al p r o p e r t y t o or fr o m , o r oth e r w i se r e q u i r i ng p a y m e n t s t o or fr om a n y o f f i c e r , d i r e c t o r or such e m p l o y ee or, t o t he k n o w l e d g e o f t he C ompan y , a n y corpora t i o n , p a r t n e r sh i p , t r u s t or other e n t i t y i n w h i ch a n y o f f i ce r , d i r e c t o r , o r a n y

 

 

ELED INVESTMENT AGREEMENT JULY.2014 14  
 

such e m p l o y ee h a s a s u bstan t i al i nt e r est or i s an o f f i ce r , d i r ect o r , t r u s t ee o r p a rt n e r .

 

( U ) D I L U TIVE E F FEC T . T he C o m p a ny u n d e r s t a n ds a n d a c k n o w l e d g es t h at t he n u m b e r o f sh a r es o f C o mm on St ock i ssu a b l e u p on p u r c h as e s p u r su a nt t o t h i s A greeme n t w il l i ncrease i n cer t a i n c i r c u m s t a n c e s i nc l u di n g , b u t n o t n e ce s sari l y l i m i t ed t o, t he c i r c ums t a n ce w h e r e i n t he tr a di n g p r i ce o f t he C o m m on S t o c k d e c li n e s d u r i ng t he p e r i od b e t w e e n t he E f f e c t i v e D ate a n d t he e n d of t he O p e n P e r i o d . T he C ompan y ' s e x ec u t i v e of f i c e r s a n d d i r ec t ors h a v e s t u di ed a n d f u ll y u n d e r s t a n d t he n at ure o f t he t r a n sacti o ns c o n t emp l ated by t h i s A g r e e m e n t a n d r e c o g n i z e t h a t t h e y h a v e a p o t e n t i al d il uti v e ef f e c t on t he sh a r e h o l d e r s o f t he C ompan y . T he B o a r d o f Di r ecto r s o f t he C omp a ny h a s co n c l u d e d , i n i t s g o o d f a i t h b u s i n e ss j u d gmen t , a n d wi t h f u l l un d ers t a n d i n g o f t he i m p li cati o ns, t h a t such i ssu a nce i s i n t he b e st i nte r ests o f t he C ompan y . T he C o m p a ny sp e c i f i ca ll y ac k n o w l e d g es t h a t , s u b j ect t o such li m i t a t i o n s as are e x press l y set f o r t h i n t he E q u i t y L i ne Trans a c t i on D oc u m e n t s , it s o bli g ati o n t o i ssue sh a r es o f C om m on S t o c k u p on p u r ch a s e s p u r su a nt t o t h i s A g r e e m e n t i s a b so l ute a n d u n co n d i t i o n al r e g ard l ess o f t he d il uti v e ef f e ct t h a t such i ssu a nce m ay h a v e on t he o w n e r sh i p i nte r ests o f other sh a r e h o l d e r s o f t he C o m p a n y .

 

( V ) LOC K - UP . T he C o m p a ny sh al l ca u se i t s of f i c ers a n d d i r ect o r s t o r e fr a i n fr om se lli n g

C om m on S t o c k d u r i n g e ach P r i c i n g P eri o d .

 

( W ) N O G ENERA L S O LIC I T A T I O N . N e i t h e r t he C ompan y , n o r a n y o f i t s a f f ili ates, no r a n y p e r son acti n g on it s b e h a l f , h a s e n g a g ed i n a n y f o r m o f g e n e r al so li c i tati o n or g e n e r al a d v er t i s i ng ( w i t h i n t he m e a n i ng o f R e g u l ati o n D ) i n co n n e c t i on w i t h t he o f f e r or sa l e o f t h e C om m on S t o c k t o be o f f ered as set f o r t h in t h i s A g r e e m e n t .

 

( X ) N O BR O KERS , FI N DER S O R FIN ANC I A L ADV I S O R Y F EE S O R CO M M I SS IO NS . N o bro k e r s, f i n d e r s or f i n a nc i al a d v i sory f e e s or com m i ss i o n s w i l l be p a ya bl e b y t he C ompan y , i t s a g e n t s or S u b s i d i ar i es, w i t h r es p ect t o t he tr a n sa c t i o n s co n t emp l a t ed by t h i s A greeme n t , e x ce p t as o t h e r w i se d i sc l os e d in t h i s A g r e e m e nt .

 

SEC T I O N 5 . C O VENAN T S O F T H E C O M PA N Y

 

( A ) E F F O R T S . T h e C ompa n y sh al l use a l l com m erc i a l l y r e a so n a bl e ef f o r t s t o t i m e l y sati s f y e a ch o f t he co n d iti o n s set f o rt h i n Secti o n 8 o f t h i s A gree m e nt .

 

( B ) B L U E SKY . T he C omp a ny sh all , at i t s so l e c ost a n d e x p e ns e , on or b e f o r e e a ch o f t he Cl os i ng D ates, t a ke such acti o n as t he C ompany sh al l r e a so n a b l y d e t e r m i ne i s n e cess a r y t o q u al i f y t he S ec u r i t i es f o r , or o b t a i n e x emp t i on f o r t he S ec u r i t i es f o r , s a l e t o t he I n v estor at e a ch of t he Cl os i n g s p u r su a nt t o t h i s A gre e m e n t u n d e r a p p li ca bl e sec u r i t i es or “ Bl ue S k y ” l a w s o f such s t a t es o f t he U n i t ed S t at e s, a s r e a so n a b l y sp e c i f i ed by t he I n v e s t o r , a n d sh al l pro v i de e v i d e nce of a n y such a c ti on so t a ken t o t he I n v es t or on or pri o r t o t he Cl os i ng D ate.

 

( C ) REP O R TING S T A T US . U ntil o n e o f t he f o ll o w i n g o c cur s , t he C ompany sh al l f il e a l l r e p or t s r e q ui r ed t o b e f il ed wi t h t he SE C p u r su a nt t o t he 1 9 34 A c t , a nd t he C ompany sh al l n o t t e r m i n a t e it s s t a t us, or t a k e an a c t i on or f a i l t o t a k e a n y acti o n, w h i ch w o u l d t er m i n a t e it s s t atus as a r e p o r t i n g c o m p a ny u n d e r t h e 1 9 34 A c t : ( 1) t h i s A greeme n t t e r m i n a t es p u r su a n t t o S ecti o n 9, or ( 2) t he d at e on w h i ch t he I n v estor h a s so l d a l l t he S ec u r i t i es; pro v i d e d t h a t t he I n v estor sh al l pr o m ptly n o t i f y t he C o m p a ny a ft er t he I n v estor h a s so l d a l l t he S ec u r i t i e s .

 

 

ELED INVESTMENT AGREEMENT JULY.2014 15  
 

( D ) US E O F PR O CEEDS . T h e C ompany w i l l use t h e p r oc e e d s f r om t he sa l e of t he S ec u r i t i es ( e x c l u di ng a m o u nts p ai d by t he C o m p a ny f o r f e e s as s e t f or t h i n t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s) f o r g e n e r al corp o r ate a n d w or k i n g ca pi t al p u r p o s es a n d a c q u i s i t i o n s o r ass e t s , b u s i n e sses o r o p e r ati o ns o r f o r o t h e r p u r p o ses t h a t t he B o a r d o f Di r ecto r s , i n i t s g o o d f a i t h, d e e m s t o be i n t he b e st i nt e r e s t o f t he C o m p a n y .

 

( E ) FIN ANC I A L I N F O R M A T IO N . D uri n g t he O p e n P eri o d, t he C ompany a g r e e s t o m a k e a v a il a bl e t o t he I n v estor v i a t he SE C ’ s E D G A R w e b s i t e or other e l ect r o ni c m e a ns t h e f o ll o wi ng d o cumen t s a n d i n f o r m a t i on on t he f o r m s set f o r t h: ( 1 ) w i t h i n f i v e ( 5) Trad i ng D a y s af t e r t he f ili n g t h e r e o f w it h t he SEC , a co p y o f i t s A n n u al R e p or t s on F o r m 1 0 - K , i t s Q u a r t erly R e p or t s on F o r m 1 0 - Q , a n y C ur r e n t R e p o r t s on F o r m 8 - K a n d a n y R e g i s t r ati o n S t at e m e n t s o r amendme n t s f il ed p u r s u a n t t o t he 1 9 33 A c t ; ( 2) co pi es o f a n y n o t i ces a n d other i n f o r m ati o n m a d e a v a il a b l e or g i v en t o t he sh a r e h o l d e r s o f t he C ompany g e n era ll y , co n t emp o r a n e o us l y w i t h t he m a k i n g a v a il a bl e or g i v i ng t h e r e o f t o t he sh a r e h o l d e r s; a n d ( 3) w i t h i n t w o ( 2) ca l e n d a r d a y s o f f ili ng or d eli v ery t h e r e o f , co pi es o f a l l d o cum e nts f il ed w i t h, a n d a l l cor r es p o n d e nce se n t t o , t he P r i nc i p a l M ar k e t , a n y sec u r i t i es e x ch a n g e o r m a r k e t , or t he F i n a nc i al I n d us t r y R e g u l at o r y A utho r i t y , u nl ess such i n f or m a t i on i s m at e r i al n o n p u b li c i n f o rm a t i o n .

 

( F) RESERVA T IO N O F S H ARES . T h e Co m p a n y s h a l l r es e r v e 5 , 0 0 0,000 S h a r es f or t he i ssu a nce o f t he S e curiti e s t o t he I n v est o r as r e q u i r ed h e r e u n d e r . I n t he e v e n t t h a t t he C ompany d e t er m i n e s t h at i t d o es n o t h a v e a s u ff i c i e n t n u m b e r o f a uth o r i zed sh a r es o f C o mm o n S t o c k t o r es e r v e a n d k e e p a v a il a bl e f or i ss u a n ce as d e sc r i b e d i n t h i s S ecti o n 5(F ) , t he C ompany sh al l use a l l c om m e r c i a ll y r e a so n a bl e e f f o rt s t o i ncrease t he n umber o f a u t h o r i z ed sh a r es o f C o m m on S t ock by se e k i n g sh a r e h o l d e r a p pro v al f o r t he a u t h o r i z ati o n o f such a d d i t i o n al sh a r es.

 

( G ) LIS T I NG . T he C ompany sh al l pro m ptly s e cure a n d m a i nta i n t he li s t i ng o f a l l o f t he R e g i s t r a bl e S ec u r i t i es ( as d e f i n e d i n t he R e g i s t r ati o n Ri g h t s A g r e e m e nt ) on t he P r i nc i p a l M ar k et a n d e a ch o t h e r n a t i o n al sec u r i t i es e x ch a n g e a n d a u t om a t ed q u ota t i on s y s t e m , i f a n y, u p on w h i ch sh a r es o f C om m on S t o c k are t h e n l i s t ed ( su b j e c t t o o ff i c i al n otice o f i ssu a n ce) a n d sh al l m a i nta i n, such li s t i ng o f a l l R e g i s t r a bl e S ec u r i t i es fr om t i m e t o t i m e i ssu a b l e u n d e r t he t e r m s o f t he E q ui t y L i ne T r a n sacti o n D oc u m e n t s. N e i t h e r t he C o m p a ny n o r a n y of it s S u b s i d i ari e s sh al l t a k e a ny acti o n w h i ch w o ul d b e r e a so n a bl y e x p e c t ed t o r es ul t i n t he d eli s t i n g or sus p e n s i on o f t he C om m on S t o c k on t he P r i nc i p a l M ar k e t ( e x c l u di ng sus p e n s i o n s o f n o t m ore t h a n o n e ( 1 ) t r a di ng d a y r es ul t i ng fr o m b u s i n e ss a n n o u n cemen t s b y t he C ompan y ) . T he C ompany sh al l pro m ptly prov i de t o t he I n v es t or co pi es o f a n y n o t i ces i t r ec ei v es fr om t he P r i nc i p a l M ar k e t r e g a r d i ng t he co n t i n u ed e li g i b ili t y of t he C o m m on S t o ck f o r li s t i n g on s u ch a u t om a t ed q u o t a t i on sys t em o r sec u r i t i es e x ch a n g e . T he C o m p a ny sh al l p a y a l l f e e s a n d e x p e ns e s i n conn e c t i on wi t h sa t i s f y i ng i t s o bli g a t i o n s u n d e r t h i s S ecti o n 5( G ) .

 

( H ) T RANSAC T I O N S W I TH A F F I LI A T ES . T he C o m p a ny sh al l n o t , a n d sh a l l ca u se e a ch o f i t s S u b s i d i ari e s n o t t o, e n t er i nto, a m e n d, m o d i f y or su p p l emen t , or p e r m i t a n y S u b s i d i ary t o e n t er i nto, a m e n d, m o d i f y or su p p l emen t , a n y a g r e e m e nt , t r a n sa c t i o n , com m i tm e n t or ar r a n g e m e n t w i t h a n y of i t s or a n y S u b s i d i ar y ' s of f i ce r s, d i r ecto r s , p e r so n s w ho w ere of f i c e r s or d i r e c t o r s at a n y t i m e d u r i n g t h e pre v i o u s t w o ( 2) y e a r s, sh a r e h o l d e r s w ho b e n e f i c i a l l y o w n 5% or m ore o f t he C o mm on S t o c k, or A ff ili ates o r w i t h a n y i n d i v i d u al r e l ated by b l o o d, m a r r i a g e o r a d o pti on t o a n y such i n d i v i d u a l or wi t h a n y e n t i t y i n w h i ch a n y such e n t i t y or i n d i v i d u al o w ns a 5% or m o r e b e n e f i c i al i nte r est ( e a ch a “ R e l ated P ar t y ” ) , e x ce p t f o r ( 1 ) cust o m ary emp l o y m e n t ar r a n g e m e n t s a n d b e n e f i t p r o g r a m s on r e a s o n a bl e t e r m s, ( 2 ) a n y a g r e e m e n t , t r a n sa c t i o n , com m i tm e n t or a r r a n g e m e n t on an ar m s - l e n g t h b a s i s on t er m s no l ess f a v orab l e t h a n t e r m s w h i ch w o ul d h a v e b e e n o b t a i n a b l e fr om a d i s i nte r e s t ed t h i r d p a r t y oth e r

 

 

ELED INVESTMENT AGREEMENT JULY.2014 16  
 

t h a n such R e l ated P a r t y ,( 3) a n y a g r e e m e nt , t r a n sacti o n, c o mm i tm e n t or ar r a n g e m e n t w h i ch i s a p pro v ed by a m a j o r i t y o f t he d i s i nt e r ested d i r ecto r s o f t he C ompan y , or ( 4) e x t e n s i o n s or amendme n t s o f a n y e x i s t i ng e m p l o y m e n t a g r e e m e n t . F o r p u r p o ses h e r e o f , a n y d i r ect o r w ho i s a l so an o f f i cer o f t he C o m p a ny or a n y S u b s i d i ary of t he C ompany sh al l n o t be a d i s i nte r e s t ed d i r ector w i t h r es p ect t o a ny such a g r e e m e n t , tr a n sacti o n, c o mm i tm e n t or ar r a n g e m e nt . “ A ff ili a t e” f or p u r p o ses h e r e o f m e a ns, w i t h r es p e c t t o a n y p e r son or e n t i t y , a n o t h e r p e r son o r e n t i t y t h a t , d i r ectly or i n di r ectl y , ( 1) h a s a 5% or m ore e q u i t y i nte r est i n t h a t p e r son o r e n t i t y , ( 2) h a s 5% o r m ore c o mm on o w n e r sh i p wi t h t h a t p e r son or e n t i t y , ( 3) c o n tr o l s t h a t p e r son or e n t i t y , or ( 4 ) i s u n d e r co m m on co n tr ol wi t h t h a t p e r son or e nti ty . “ C o n tr o l ” o r “ C o n tr o l s ” f o r p u r p o ses h e r eo f m e a ns t h a t a p e r son or e n t i t y h a s t he p o w er, d i r ectly or i n di r ectl y , t o co n d u ct or g o v ern t he p oli c i es of a n oth e r p e r s o n o r e n t i t y .

 

(I ) FIL I N G O F F O R M 8- K . O n or b e f ore t he d a t e w h i ch is f o u r ( 4) T r a di n g D a y s a f t er t he d a t e o f e x ec u t i on o f t h i s A g r e e m e n t , t he C o m p a ny sh al l f il e a C ur r e n t R e p ort on F o r m 8 - K wi t h t he SE C d e sc r i b i ng t he t e r m s o f t he t r a n sacti o n co n t e m p l ated by t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s i n t he f o r m r e q u i r ed by t h e 1934 A c t , i f such f ili n g i s r e q u i r e d .

 

( J) C O RP O RA T E E X I S T E N CE . T he C o m p a ny sh al l use a l l com m e r c i a ll y r e a so n a bl e e f f o rt s t o pr e ser v e and c o n t i n u e t he c o r p o r a t e e x i s t e n ce o f t he C ompan y .

 

( K ) N O TICE O F CER T A I N EVEN T S A F FEC T I N G RE GI S T RA T I O N ; SUSPENS IO N O F RI G H T TO M AK E A PU T . T he C o m p a ny sh al l pro m p t l y n o t i f y t he I n v estor u p on t he occ u rr e n c e o f a n y o f t h e f o ll o w i ng e v e n t s i n r e sp e ct o f a R e g i s tr a t i on S t at e m e n t or r e l at e d prospect u s i n r es p ect o f an of f e r i ng o f t he S ec u r i t i es: ( 1) r e ce i pt o f a n y r e q u e st f o r a d d i t i o n al i n f o rm a t i on by t he SE C or a n y other f e d e r al or s t ate g o v ern m e n t al a u t h o r i t y d u r i ng t he p e r i od o f e f f e c t i v e n ess of t he R e g i s tr a t i on S t at e m e n t f o r amendme n t s or su p p l em e nts t o t he R e g i s tr a t i o n S t at e m e n t or r e l ated p r os p ectu s ; ( 2) t he i ssu a nce by t he SE C or a n y other f e d e r al or s t a t e g o v ern m e n t al a u t h o r i t y o f a n y s t op o r d e r s u s p e n d i ng t he e ff ecti v e n ess o f a n y R e g i s tr a t i on S t at e m e n t or t he i n i t i ati o n o f a n y pr o ce e d i n g s f o r t h a t p u r p o s e ; ( 3) r ec ei p t o f a n y n o t i f i c a t i on w i t h r es p ect t o t h e sus p e n s i on o f t he q u al i f i cati o n or e x emp t i on fr om q u al i f i c a t i on o f a n y o f t he S ec u r i t i es f or sa l e i n a n y j uris di c t i on or t he i n i t i ati o n or n o t i ce o f a n y procee di ng f or s u ch p u r p o se; ( 4 ) t he h a p p e n i ng o f a n y e v e n t t h a t m a k es a n y s t a t eme n t m a d e i n such R e g i s t r ati o n S t at e m e n t o r r e l a t ed pr o sp e c t us o r a n y d o cum e nt i nc o r p o r ated o r d e e m ed t o be i nc o r p o r a t ed t h e r e i n by r e f e r e n ce u n t r ue i n a n y m ate r i al r es p ect or t h a t r e q u i r es t he m a k i n g o f a n y ch a n g e s i n t he R e g i s t r ati o n S t a t emen t , r e l ated p r os p e c t us or d o cume n t s so t h at, i n t he case o f a R e g i s t r ati o n S t a t e m e nt , i t w i l l n o t co n t a i n a n y u n t r ue s t at e m e n t o f a m a t er i al f a c t o r om i t t o s t a t e a n y m ate r i al f act r e q u i r e d t o be s t a t ed t h e r e i n or n e cess a r y t o m a ke t he s t at e m e n t s t he r e i n n o t m i s l e a d i n g , a n d t h a t i n t he case o f t he r e l at e d prospe c t us, i t w il l n o t co n t a i n a n y u n tr ue s t at e m e n t o f a m a t eri a l f act or o m i t t o s t a t e a n y m ate r i al f act r e q ui r ed t o be s t ated t h e r e i n or n e cess a r y t o m a k e t he s t at e m e nt s t h e r e i n, i n t h e li g ht o f t he c i r c u m s t a n ces u n d e r w h i ch t h e y w ere m a d e, n o t m i s l e a d i n g ; a n d ( 5 ) t he C o m p a n y ' s r e a so n a bl e d e t e r m i n a t i on t h a t a p o s t - e f f e c t i v e amendme n t t o t he R e g i s tr a t i on S t a t e m e n t w o ul d be a p propr i ate, a n d t he C o m p a ny sh al l pro m ptly m a k e a v a il a bl e t o I n v estor a n y s u ch su p p l ement o r a m e n d m e n t t o t he r e l ated prospect u s. T he C o m p a n y sh al l n o t d e l i v er t o t he I n v estor a n y P ut N otice d u r i n g t he co n t i n u ati o n o f a n y o f t h e f o r e g o i ng e v e n t s i n t h i s S ecti o n 5 ( K ) .

 

( L) RE I M B URS E M EN T . I f ( I ) t he I n v estor b e comes i n v o l v ed i n a n y ca p ac i t y i n a n y acti o n, proce e d i ng o r i n v esti g ati o n bro u g h t by a n y sh a r e h o l d e r of t he C ompan y , i n co n n e c t i on wi t h or as a r es ul t o f t h e co n su m m ati o n o f t he tr a n sa c t i o n s co n t emp l a t ed by t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s, or i f t he I n v estor i s i m p l e a d e d i n a n y such acti o n, p r oc e e di n g o r i n v esti g ati o n by a n y p e r s on ( other t h a n as a r es u l t o f a breach o f t he I n ve s t or’s r e p r es e nt a t i o n s

 

 

ELED INVESTMENT AGREEMENT JULY.2014 17  
 

a n d w ar r a n t i es set f o r t h in t h i s A greeme n t ) ; o r ( I I ) t he I n v est o r b e com e s i nv ol v ed i n a n y ca p ac i t y i n a n y acti o n, procee di n g o r i n v esti g a t i on bro u g h t by t he SE C a g a i nst o r i n v o l v i ng t he C ompany ( u nl ess t he C omp a ny i s i n v o l v ed i n t he acti o n, p r oc e e di ng or i n v est i g ati o n as a w i t n e ss o n l y ) or i n co n n e c t i on w i t h or as a r es ul t o f t he co n s u m m ati o n o f t he tr a n sa c t i o n s co n t emp l a t ed by t h e E q u i t y L i ne T r a n s a c t i on D oc u m e n t s ( oth e r t h a n as a r es ul t o f a b r e ach o f t he I n v est o r ’ s r e p r es e n t ati o ns a n d w ar r a n t i es s e t f o r t h i n t h i s A g r e e m e n t ) , o r i f t h i s I n v estor i s i m p l e a d e d i n a n y such acti o n, proc e e di ng or i n v esti g a t i on by a n y p e r so n , t h e n i n a ny such cas e , t he C ompany w i l l r e i m b u r s e t he I n v estor f or i t s actua l , r e a s o n a b l e l e g a l a n d other e x p e ns e s ( i nc l u di ng t he cost o f a ny i n v esti g ati o n a n d pr e p a r ati o n) i nc u rr ed i n c o n n ecti o n t h e r ew i t h, as such e x p e ns e s are i nc u rr e d . I n a d d i t i o n , oth e r t h a n wi t h r es p ect t o a n y m at t e r i n w h i ch t he I n v estor i s a n a m ed p a r t y , t he C omp a ny wi l l p a y t o t he I n v est o r t he c h a r g es, a s r e a so n a bl y d e t e r m i n e d by t he I n v esto r , f or t he t i m e o f a n y of fi cers or emp l o y e e s o f t h e I n v estor d e v oted t o a p p e ari n g a n d p r e p ari n g t o a p p e ar a s w i t n e sses, ass i s t i ng i n prepar a t i on f or h e a r i n g s , tr i a l s or pre t r i al m at t e r s, or o t h e r w i se wi t h r es p ect t o i n q u i r i es, h e a r i n g , tr i a l s, a nd other procee di n g s r e l ati n g t o t he su b j e c t m at t e r o f t h i s A g r e e m e n t . T he r e i m b u r seme n t o bli g a t i o n s o f t he C o m p a n y u n d e r t h i s secti o n sh al l be i n a d d i t i on t o a n y li a bili t y w h i ch t he C ompa n y m ay othe r w i se h a v e, sh al l e x t e n d u p on t he same t e rm s a n d co n d i t i o n s t o a n y af f ili ates o f t he I n v estor t h a t a r e actua ll y n a m ed i n such acti o n, procee di ng or i n v esti g ati o n, a n d p a r t n e r s, d i r e c t or s , a g e n t s , emp l o y e e s, a t t orne y s, a cco u ntan t s, a u d i t ors a n d co nt r o lli ng p e r so n s ( i f a n y ) , as t he c a se m ay b e , o f I n v estor a n d a n y such a f f ili ate, a n d sh al l be b i n di ng u p on a n d i n u r e t o t he b e n e f i t o f a n y succ e ssors o f t he C om p a n y , t he I n v estor a n d any such af f ili ate a n d any s uch p e r so n . H ow e v er, i n a l l e v e n t s, i f t he I n v estor i s f o u nd t o be g u il t y o f v i o l ati o ns o f t he f e d e r al or s t ate sec u r i t i es l a w s ( or p l e a ds “ no co nt est” or o t h e r s i m il ar p l ea or set t l es an i n v esti g a t i on or p l e a d i ng w i t h o ut a sp e c i f i c f i n di n g o f li a bili t y b u t i s s t il l su b j ect t o c i v i l or c r i m i n a l li a bili t y ) , t he C ompany w i l l h a v e no r es p o n s i b ili t y t o p a y a n y of t he I n v est o r ’ s f e e s a n d e x p e ns e s r e g ard l ess of w h e t h e r or n o t t he C ompany i s or i s a l so f o u n d t o h a v e l i a bili t y .

 

( M ) T RANS F E R A G EN T. U p on e f f e c t i v e n ess o f t he R e g i s t r ati o n S t a t em e n t , a n d f or so l o n g as t he R e g i s t r at i on S t ate m e n t i s ef f e c t i v e , t he C ompany sh al l d e l i v er i nst r ucti o ns t o i t s tr a n s f er a g e n t t o i ssue S h a r es t o t he I n v estor t h a t are co v ered f or r es a l e by t he R e g is t r ati o n S t at e m e n t fr ee o f r es t r i c ti v e l e g e n ds.

 

( N ) ACKN O W L E D G E M EN T O F T ER M S . T he C ompany h e r e b y r e p r es e nts a n d w ar r a n t s t o t he I n v estor t h at : ( 1) i t i s v o l u n t ari l y e nte r i n g i nto t h i s A g r e e m e n t o f i t s o w n f r e e w i l l , ( 2) i t i s n o t e n t e r i n g t h i s A g r e e m e n t u n d e r e c o n o m i c d u r es s , ( 3) t he t e r m s o f t h i s A greeme n t are r e a so n a bl e a n d f a i r t o t h e C ompan y , a n d ( 4 ) t he C ompany h a s h a d i n d e p e n d e nt l e g al co u ns e l o f i t s o w n ch o os i n g r e v i ew t h i s A g r e e m e nt , a d v i se t he C o m p a ny wi t h r es p ect t o t h i s A greeme n t , a n d r e p r es e nt t he Com p a n y i n conn e c t i on w i t h t h i s A greeme n t .

 

SEC T I O N 6 . C O NDI T I O N S O F T H E C O M PA N Y ' S O B L I G A T I O N TO SE L L . T he o b l i g ati o n h e r e u n d er o f t he C omp a ny t o i ssue a n d se l l t he S ec u r i t i es t o t he I n v estor i s f u rt h e r su b j ect t o t he s a t i s fa c t i o n , a t o r be fore e a ch Cl os i ng D a t e, o f e a ch o f t he fo ll o w i ng co n d i t i o n s s e t f o r t h b el o w . T h e se co n d i t i o n s are f o r t he C ompany ' s so l e b e n e f i t a n d m a y be w a i v ed b y t he C ompany at a n y t i m e in i t s so l e d i sc r e t i o n .

 

( A ) T he I n v estor sh al l h a v e e x ec u t ed t h i s A greem e nt a n d t he R e g i s t r ati o n Ri g h t s

A g r e e m e n t a n d d eli v ered t he same t o t he C o m p a n y .

 

( B ) T he I n v estor sh al l h a v e d eli v ered t o t he C om p a n y t he P urchase P r i ce f or t he S ec u r i t i es b ei n g p u r ch a sed by t he I n v estor b e t w e e n t he e n d o f t he P r i c i ng P eri o d a n d t he Cl os i ng D ate v i a a P ut S et t l eme n t S h e et ( h er e t o at t ac h ed as E x h i b i t D ) . I m m e di ate l y af t er

 

 

ELED INVESTMENT AGREEMENT JULY.2014 18  
 

r ec ei pt o f co n f i r m a t i on o f d eli v ery of such S e c uriti e s t o t he I n v est o r , t he I n v esto r , by wi r e tr a n s f er o f i m m e di ate l y a v a il a b l e f u n ds p u r s u a n t t o t he w i r e i nst r u c ti o n s pro v i d e d by t he C ompan y , w i l l d i sb u r se t he f u n d s co n s t i t uti n g t he P urchase A m o u n t .

 

( C ) T he r e p r e se n t a t i o n s a n d w ar r a n t i es o f t he I n v es t or sh al l be t r ue a n d co rr ect i n a l l m at e r i al r es p e c t s as o f t he d a t e w h e n m a d e a n d as o f t he a p p li ca bl e Cl os i ng D ate as t h ou g h m a d e at t h a t t i m e a n d t h e I n v estor sh al l h a v e p e r f o r m e d , sati s f i ed a n d comp li ed i n a l l m ate r i al r es p ec t s w i t h t he cov e n a nts, a greeme n t s a nd co n d i t i o n s r e q u i r ed by t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s t o be p e r f o rm e d , sati s f i e d or comp li ed w i t h b y t h e I n v estor on or b e f o r e such Cl os i ng D at e .

 

( D ) N o s t atu t e , r u l e, r e g u l a t i o n , e x ec u t i v e order, d e c r e e , r u li ng or i n j u n c t i o n sh al l h a v e b e en e n acted, e n t ered, pr o m u l g ated or e n d o r sed by a n y co u r t or g o v ern m e n t al a u t h o r i t y o f comp e t e n t j u r i sd i c t i o n w h i ch proh i b i t s t he co n su m m ati o n o f a n y o f t he tr a n sacti o ns conte m p l a t ed by t h i s A g r e e m e nt .

 

SEC T I O N 7 . F U R T HE R C O ND I TI O N S O F T H E I NVES T O R ' S O B LI G A TI O N T O PURCHASE . T he o bl i g ati o n o f t he I n v estor h e r e u n d e r t o p u r c h ase S h a r es i s su b j e ct t o t he s a t i s f a c t i o n , on or b e f ore e a ch C l os i n g D a t e, o f e a ch o f t he f o ll o wi n g cond i t i o n s s e t f o rt h b el o w .

 

( A ) T he C o m p a ny sh al l h a ve e x ec u t ed t he E q u i t y L i ne Trans a c t i on D oc u m e nts and

C om m it m e n t S h a r e s a n d d eli v ered t he s a m e t o t h e I n v esto r .

 

( B ) T he C o m m on St o c k sh a l l be a u t h o r i z ed f o r q u o t a ti on on t he P r i nc i p a l M arket a n d tr a di n g i n t he C om m on S t o c k sh al l n o t h a v e b e en sus p e n d e d by t he P r i nc i p a l M ar k et or t h e SEC , at a n y t i m e be g i n ni ng on t he d a t e h e r e o f a n d t hro u g h and i n c l u di ng t he r es p ecti v e C l os i ng D ate ( e x c l u di ng sus p e n s i o n s o f n o t m o r e t h a n o n e ( 1) Trad i ng D ay r es ul t i ng fr o m b u s i n e s s a n n o u n ceme nt s by t he C ompan y , pro v i d e d t h a t such sus p e n s i o n s occ u r pri o r t o t he C ompan y ' s d el i v ery of t he P ut N otice r e l ated t o such Cl os i n g ) .

 

( C ) T he r e p r es e n t ati o ns a n d w ar r a n t i es of t he C om p a n y sh al l be tr ue a n d cor r e c t i n a l l m ate r i al r es p ects as of t he d a t e w h e n m a d e a n d as of t he a p p li ca bl e C l os i ng D ate as t h o u gh m a d e at t h a t t i m e a n d t h e C ompany sh al l h a v e p e r f o rm e d , sati s f i ed a n d c omp li ed i n a l l m ate r i al r es p ec t s w i t h t he cov e n a nts, a greeme n t s a nd co n d i t i o n s r e q u i r ed by t he E q u i t y L i ne T r a ns a c t i on D oc u m e n t s t o b e p e r f o r m e d , sati s f i ed or comp li ed w i t h b y t he C ompany on or b e f ore s uch Cl os i ng D ate. T he I n v est o r m ay r e q u e st an u p d a t e as o f such Cl os i n g D a t e r e g ard i n g t he r e p r es e n t a t i on co n t a i n e d i n Secti o n 4(C) a b o v e.

 

( D ) T he C o m p a ny sh al l h a ve e x ec u t ed a n d d eli v ered t o t he I n v estor t he ce r t i f i cat e s r e p r es e n t i n g , or h a v e e x ec u t ed e l ect r o ni c b o o k - e nt r y tr a n s f er o f , t h e S ec u r i t i es ( i n such d e n o m i n a t i o n s as t he I n v estor sh al l r e q u e s t ) b ei n g pu r ch a sed by t he I n v estor at such Cl os i n g .

 

( E ) T he B o a r d o f Di r ect o r s o f t he C ompany sh al l h a ve ado p t ed r es ol uti o ns c o ns i s t e n t wi t h S ecti o n 4(B ) ( 2) a b o v e (t he “ R es ol uti o ns ” ) a n d such R es ol uti o ns sh al l n o t h a v e b e en amend e d o r r esc i n d ed p r i or t o such Cl os i ng D a t e.

 

( F) N o s t atu t e , r u l e, r e g u l a t i o n , e x ec u t i v e order, d e c r e e , r u li ng or i n j u n c t i o n sh al l h a v e b e en e n acted, e n t ered, pr o m u l g ated or e n d o r sed by a n y co u r t or g o v ern m e n t al a u t h o r i t y o f comp e t e n t j u r i sd i c t i o n w h i ch proh i b i t s t he co n su m m ati o n o f a n y o f t he tr a n sacti o ns co n t emp l a t ed by t h i s A g r e e m e nt .

 

 

 

ELED INVESTMENT AGREEMENT JULY.2014 19  
 

( G ) T he R e g i s tr a t i on S t at em e n t sh al l be e f f e c t i v e on e a ch Cl os i ng D ate a n d no s t op order sus p e n d i n g t he e ff ecti v e n ess o f t he R e g i s tr a t i on s t at e m e n t sh al l be i n ef f ect or t o t h e C ompan y ' s k n o w l e d g e s h al l be p e n di ng or t h r e at e n e d . F u rt h e rm o r e, on e ach Cl os i ng D a t e ( 1 ) n ei t h e r t he C ompany n o r t he I nvest o r sh al l h a ve r ec ei v ed n o t i ce t h a t t he SE C h a s i ssu e d or i ntends t o i ssue a s t op order w i t h r es p ect t o such R e g i s tr a t i on S t a t e m e n t or t h a t t he SE C othe r w i se h a s sus p e n d e d or wi t h d r a w n t he ef f e c ti v e n ess of such R e g i s t r a t i on S t ate m e n t , e i t h e r t emp o r ari l y or p e rm a n e n t l y , or i ntends or h a s t hrea t e n ed t o do so ( u nl ess t he SEC ' s co n cerns h a v e b e en a d dressed a n d I n v estor i s r e a so n a bl y sati s f i ed t h a t t he SE C no l o n g er i s co n s i d e r i n g or i ntends t o t a k e such acti o n), a n d ( 2 ) no oth e r sus p e n s i on of t he use or wi t h d r a w al of t he e f f e c t i v e n ess o f such R e g i s t r ati o n S t at e m e n t o r r e l ated prosp e c t us sh al l e x i s t .

 

( H ) A t t he t i m e o f e a ch Cl os i n g , t he R e g i s tr a t i on S t a t ement ( i nc l u di ng i n f o rm a t i on or d o cumen t s i nc o r p o r a t ed by r e f e r e n ce t h e r e i n) a nd a n y amendments o r su p p l emen t s t h e r e t o sh al l n o t co n t a i n a n y u nt r ue s t a t e m e n t o f a m ate r i al f act or o m i t t o s t ate a n y m ate r i al f a c t r e q u i r ed t o be s t ated t h ere i n or n e cess a r y t o m a k e t he s t at e m e n t s t h e r e i n n o t m i s l e a d i ng or w h i ch w o ul d r e q u i r e publ i c d i sc l os u r e o r an u p d a t e supp l eme n t t o t he p r o s p e c t us.

 

(I ) I f a p p li ca bl e, t he sh a r e h o l d e r s o f t he C omp a ny sh al l h a v e a p pro v ed t he i ssu a nce o f a n y S h a r es i n e x cess o f t he M a x i m um C o mm on S t o c k I ssu a nce i n a c cordance w i t h S ecti o n

2(H) or t he C ompany sh al l h a v e o b t a i n e d a p pro p r i ate a p pro v al p u r su a nt t o t he r e q u i r eme n t s o f

D e l a w are l aw a n d t he C ompan y ’ s A rt i c l es o f I nc o r p o r a t i on a n d By - l a w s.

 

( J) T he co n d i t i o n s t o such Cl os i ng set f o r t h i n S ecti o n 2(E) sh al l h a v e b e en s ati s f i ed on or b e f o r e s u ch C l os i ng D ate.

 

( K ) T he C ompany sh al l h a v e cer t i f i ed t o t he I n v estor t he n u m b e r o f S h a r es o f C om m on S t o c k o u t s t a nd i ng w h e n a P ut N otice i s g i v en t o t he I n v esto r . T h e C o m p a n y ' s d eli v ery o f a P u t N o t i ce t o t he I n v estor co n s t i t ut e s t he C ompan y ' s ce r t i f i cati o n o f t he r e ser v ati o n f o r i ssu a nce o f t he n e cess a r y n u m b e r o f sh a r es o f C om m on S t o c k su b j e c t t o a Put N o t i ce.

 

SEC T I O N 8 . T ER M I NA T I O N . T h i s A g r e e m e n t sh al l t e r m i n a t e u p on a n y o f t he f o ll o w i ng e v e n t s:

 

( A ) w h e n t he I n v estor h a s p urchased an a g g r e g ate o f f i v e m illi on d oll ars $ 5,000,000 i n t he C o mm on S t o c k o f t he C o m p a ny p u r su a n t t o t h i s A greeme n t ; o r ,

 

( B ) on t he d a t e w h i ch is t h i r t y - s i x ( 36) m o n t hs a ft er t h e E f f e c t i v e D a t e; o r ,

 

( C ) upon w r i tt en n o t i ce o f t he C ompany t o t he I n v esto r . A ny a n d a l l sh a r es, o r p e n al t i es, i f a n y , d u e u n d e r t h i s A greeme n t sh al l be i mm e di ate l y p a y a bl e a n d d u e u p on t e r m i n a t i on o f t h i s A g r e e m e nt .

 

SEC T I O N 9 . SUSPENS I O N . T h e C o m p a n y ’ s r i g h t t o c a use th e I n v e s t o r t o p u r c h ase Sh a r es p u r su a nt t o a Put N otic e , a n d t he I n v est o r ’ s o bli g a t i on t o p u r ch a se S h a r es u n d e r t h i s A g r e e m e n t sh al l be susp e n d ed u p o n a n y of t he f o ll o w i ng e v e n t s, a n d sh al l r ema i n sus p e n d e d u n t i l such e v e n t i s r e c t i f i e d :

 

( A ) T he t r a di ng o f t he C o mm on S t o c k i s sus p e n d e d b y t he SEC , t he P r i nc i p a l M ar k et or F I NR A f o r a p e r i od o f t w o ( 2) co n sec u t i v e T r a d i ng D a y s d u r i n g t he O p e n Per i o d ; o r ,

 

 

 

 

 

ELED INVESTMENT AGREEMENT JULY.2014 20  
 

( B ) T he C o m m on S t o c k c e as e s t o be r e g i s t ered u n d er t he 1 9 34 A ct or li s t ed or tr a d ed on t he P r i nc i p a l M a r k e t . I m m e di ate l y u p on t he occ u r r e n ce o f o n e o f t he a b o v e - d e sc r i b e d e v e n t s, t he C o m p a ny sh al l se n d w r i tt en n o t i ce o f such e v e n t t o t he I n v est o r .

 

SEC T I O N 1 0 . I NDE M N I FIC A TI O N . I n co n s i d e r ati o n o f t he p a r t i es’ m utual o bli g a t i o n s s e t f o rt h i n t he T r a n sa c t i on D o c umen t s , e a ch o f t he p a rt i es ( i n s u ch ca p ac i t y , an “I n d e m n i t o r” ) sh al l d e f e n d, pr o t e c t , i n d emn i f y a n d h o l d h a rm l ess t he other a n d a l l of t he o t h e r p a rt y ' s s h a r e h o l d e rs , o f f i ce r s, d i r ect o r s , e m p l o y e e s, co u ns el , a n d d i r e c t or i n di r ect i n v esto r s a n d a n y o f t he f or e g oi n g p e r so n ' s a g e n t s or o t h er r e p r es e n t a t i v es ( i nc l u di n g , w i t h o ut li m i t ati o n, t h o se r e t a i n e d i n co n n e c t i on w i t h t he tr a n sacti o ns co n t emp l a t ed by t h i s A g r e e m e n t ) ( co ll ecti v e l y , t he “I n d e m n i t e e s ” ) fr o m a n d a g a i nst a n y a n d a l l acti o ns, ca u ses o f a c t i o n , su i t s, c l a i m s , l oss e s , cost s , p e n al t i e s , f e e s, li a b ili t i es and dam a g es, a n d r e a so n a bl e e x p e ns e s i n conn e c t i on t h e r ew i t h ( i rr es p e c t i v e of w h e t h e r a n y such I n d emn i t ee i s a p a rt y t o t he acti o n f o r w h i ch i n d emn i f i cati o n h e r e u n d er i s so u g h t ) , a n d i nc l u di ng r e a so n a b l e at t orne y s' f e e s a n d d i sb u r seme n t s ( t he “I n d e m ni f i ed L i a bili t i es” ) , i nc u rr ed by a n y I n d emn i t ee as a r es ul t o f , o r ar i s i ng o u t o f , o r r e l ati n g t o ( A ) a n y m ate r i al m i s r e present a t i on or breach of a n y r e p r es e n t ati o n or w ar r a n t y m a d e b y t he I n d emn i t o r i n t he E q u i t y L i ne T r a n sacti o n D oc u m e n t s o r a n y other cer ti f i c a t e, i ns t r ume n t or d o cument co n t emp l a t ed h e r e b y or t h e r e b y ; ( B ) a n y m ate r i al breach of a n y co v e n a nt, a g r e eme n t or o bli g ati o n o f t he I n d e m n i t or co n t a i n e d i n t he E q u i t y L i ne T r a n sa c t i on D oc u m e nt s or a n y other cer t i f i c a t e, i ns t r u m e n t or d o cument co n t e m p l ated h e r e b y or t h e r e b y ; or ( C ) a n y ca u se of acti o n , su i t or c l a i m bro u g h t or m a d e a g a i n s t such I n d e m n i t ee by a t h i r d p a r t y a n d aris i ng o u t o f o r r es ul t i ng fr om t he e x ec u t i o n , d eli v er y , p e r f o r m a n ce o r e n f o r c e m e n t o f t he E q u i t y L i ne T r a ns a c t i on D oc u m e nt s or a n y other c e rt i f i c a t e, i nst r u m e n t or d o c u m e n t co n t emp l a t ed h e r e b y or t h e r e b y , e x ce p t i ns o f ar as ( Y ) a n y such m i s r e p r es e nt a t i o n , bre a ch or a n y u n tr ue s t at e m e n t , a ll e g ed u nt r ue s t a t e m e nt, o m i ss i on or a ll e g ed omiss i on i s m a d e i n r e li a n ce u p on a n d i n co n f o r m i t y w i t h i n f o r m a t i on f urn i sh e d t o I n d e m n it or w h i ch i s sp e c i f i ca ll y i ntend e d f o r use i n t h e prepar a t i on of a n y such R e g i s tr a t i on S t at em e n t , pre li m i n a r y prosp e c t us, pr o sp e c t u s or amendme n t s t o t he pro s p e c t us, ( Z ) a n y such I n d emn i f i ed L i a bili t i es r es ul t ed or arose fr om t h e breach by t he I n d emn i t e e p a rt y h e r eto o f a n y r e present a t i o n , w ar r a n t y , c o v e n a n t or a g r e e m e n t o f such I n d e m n i t ee co n t a i n e d i n t he E q u i t y L i n e T r a n s a c t i on D oc u m e n t s or t he n e g li g e n c e , r e c k l ess n es s , w ill f ul m i sco n d u ct o r b a d f ai t h o f such I n d e m n i t e e . To t he e x t e n t t h a t t he f or e g o i n g u n d e rt a k i n g b y t he I n d e m n i t or m ay be u n e n f o r ce a b l e f o r a n y r e a so n , t he I n d e m n i t o r sh al l m a k e t he m a x i m u m co n tr i b u t i on t o t he p a ym e n t a n d sa t i s f a c t i on o f e a ch of t he I n d emn i f i ed L i a bili t i es w h i ch i s p e rm i ss i b l e u n d e r a p p li ca bl e l aw. T he i n d emn i t y prov i s i o n s co n t a i n e d h e r e i n sh al l be i n a d d i t i on t o a n y ca u se of acti o n or s i m il ar r i g h t s I n d e m n i t or m ay h a v e, a n d a n y li a bi l i t i es t he I n d emn i t or or t he I n d emn it e e s m ay be su b j e ct t o .

 

SEC T I O N 1 1 . GO VERN I N G L A W ; D ISPU T E S SU B M I T T E D TO ARBI T RA T I O N . Al l d i sp u t es aris i ng u n d e r t h i s a g r e e m e n t sh al l be g o v erned by a n d i nte r pre t ed i n a c cordance w i t h t he l a w s o f t he C o m m o n w e al t h o f M ass a ch u se t t s , w i t h o ut r e g ard t o pri n c i p l es of co n f li ct o f l a w s. T he p a rt i es t o t h i s a g r e e m e n t w i l l su b m i t a l l d i sp u t es aris i ng u n d e r t h i s a g r e e m e n t t o arb it r a t i on i n B oston, M A b e fore a s i n g l e arb i tr a t or o f t he A m erican A r b i tr a t i on A s s oc i ati o n (“ AAA ” ) . T he arb i tr a t or sh al l be se l ec t ed by a p p li cati o n of t he r u l es o f t he AAA , or by m utual a g r e e m e n t o f t he p a rt i es, e x ce p t t h a t s uch arb i tr a t or sh al l be an at t o r n e y a d m i t t ed t o pra c t i ce l aw i n C om m o n w e al t h o f M ass a ch u set t s . N o p a r t y t o t h i s A g r e e m e n t w il l ch a ll e n g e t he j uris di c t i on o r v e n ue prov i s i o n s as pro v i d e d i n t h i s secti o n. N o p a rt y t o t h i s a g r e e m e n t w il l ch all e n g e t he j uris di c t i on or v e n ue pro v i s i o n s as pr o v i d e d i n t h i s secti o n. N oth i n g co n t a i n e d h e r e i n sh al l pre v e n t t he p a r t y fr om o bta i n i ng an i n j u n c t i o n .

 

L E G A L E X PENSES ; F E E SHARE S AN D M I SC E L LANE O U S E X PENSES . E x ce p t as o t h e r w i se set f o r t h i n t he E q u i t y L i ne Trans a c t i on D oc u m e n t s, e a ch p a r t y sh al l p a y t he f e e s a nd e x p e ns e s

 

ELED INVESTMENT AGREEMENT JULY.2014 21  
 

o f i t s a d v i sers, co u ns el , t he acc o u n t a n t s a nd o t h e r e x p e rt s , i f a n y , a n d a l l other e x p e ns e s i nc u rr ed by such p a rt y i nc i d e nt t o t he n e g o t i ati o n, prepar a t i o n , e x ec u t i o n , d eli v ery a n d p e r f o rm a n ce o f t h i s A greeme n t . A ny at t o r n e y s' f e es a n d e x p e ns e s i nc u rr ed by e i t h e r t he C ompany or t he I n v est o r i n co n n ecti o n w i t h t he p r e p ar a t i o n , n e g o t i ati o n, e x ec u t i on a n d d eli v e r y o f a n y amendments t o t h i s A g r e e m e n t or r e l a t i ng t o t he e n f orc e m e n t o f t he r i g h t s o f a n y p a rt y , a f t e r t he occ u rr e n ce o f a n y breach of t he t e r m s o f t h i s A g r e e m e n t by a n other p a r t y or a n y d e f a ul t by a n other p a rt y i n r es p ect o f t he t r a n sa c t i o n s co n t emp l ated h e r eu n d er, sh al l be p ai d on d e m a n d by t he p a rt y w h i ch breach e d t he A gre e m e n t a n d/or d e f a ul t e d , as t he case m ay b e . T he C ompany sh al l p a y a l l s t amp a n d o t h e r t a x es a n d d u t i es l e v i ed i n co n n e c t i o n w i t h t he i ssu a nce o f a n y S ec u r i t i es. T he C ompany h a s p ai d f i ft e e n t h o us a nd d oll ars ( $ 1 5,0 0 0) f o r t he prep a r ati o n o f t he E q u i t y L i ne Trans a c t i on D oc u m e n ts . I f t he C ompany i s n o t DW A C e li g i b l e at t he t i m e o f a P ut Cl os i ng, t h e r e w i l l be a $ 2 , 0 0 0 ch a r g e on e a c h Cl os i ng D a t e t o co v er costs ass o c i ated w i t h, b u t n o t li m i t ed t o: d e p o s i t cos t s, l e g al r e v i e w f e e s a n d w i r e f e e s. I f t he C ompany i s DW A C e li g i b l e at t he t i m e o f a P ut Cl os i n g , t h e r e w il l be a $ 500 ch a r g e on e a ch Cl os i ng D at e .

 

SEC T I O N 1 2 . C O UN T ERPAR T S . T h i s A greeme n t m ay be e x ec u t ed i n t w o or m o r e i d e ntic a l co u nte r p a rt s , a l l o f w h i ch sh al l be co n s i d e r ed o n e a n d t he s a m e a g r e e m e n t a n d sh al l b e come e f f e c t i v e w h e n co u nte r p ar t s h a v e b e en s i g n e d b y e a ch p a rt y a n d d el i v e r ed t o t he o t h e r p a r t y ; pro v i d e d t h a t a f acs i m il e s i g n a t u r e sh al l be co n s i d ered d u e e x ec u t i on a n d sh al l be b i n di ng u p on t he s i g n a t o r y t h e r e t o w i t h t he same f orce a n d e ff e ct as i f t he s i g n a t u r e w ere an ori g i n a l s i g n a t u r e.

 

SEC T I O N 1 3 . HEAD I N G S ; S I N G U L A R / P L URA L. T he h e a di n g s o f t h i s A g r e e m e n t are f o r co n v e ni e n ce of r e f ere n ce a n d sh al l n o t f o r m p a r t o f , o r a ff e c t t he i nte r pr e t ati o n o f , t h i s A g r e e m e n t . W he n e v er r e q u i r ed by t he co n t e x t o f t h i s A g r e e m e nt , t he s i n g u l ar sh al l i nc l u d e t he p l ural a n d m asc uli ne sh a l l i nc l u d e t he f e m i n i n e .

 

SEC T I O N 1 4 . SEVERAB I LI T Y . I f a n y pro v i s i on of t h i s A g r e e m e n t sh al l be i n v a li d or u n e n f orceab l e in a n y j ur i sd i c t i o n , such i n v a l i d i t y o r u n e n f orceab i li t y sh al l n ot a f f e c t t he v a li d i t y or e n f orceab i li t y of t he r e m a i n d er o f t h i s A g r e e m e n t i n t h a t j uris di c t i on or t he v a li d i t y or e n f orceab i li t y o f a n y p r o v i s i on o f t h i s A g r e e m e n t i n any other j u r i sd i c t i o n .

 

SEC T I O N 1 5 . EN T I R E A G REE M EN T ; A M EN D M EN T S . T h i s A g r e e m e n t i s t he FIN A L A G REE M E N T b e t w e e n t he C ompany a n d t he I n v estor w i t h r es p ect t o t he t e r m s a n d co n d i t i o n s set f o rt h h e r e i n, a n d, t he t e r m s o f t h i s A gre e m e n t m ay n o t be co n tr a di c t ed by ev i d e nce of pri o r , co n t emp o r a n e o u s , or su b se q u e n t oral a g r e e m e n t s o f t he P ar t i es. N o prov i s i on of t h i s A g r e e m e n t m ay be am e n d ed other t h a n by an i nst r u m e n t i n w r i t i ng s i g n e d by t he C ompany a n d t he I n v est o r , a n d no p r o v i s i on h e r e o f m ay be w a i v ed other t h a n by an i nst r u m e n t i n w r i t i ng s i g n e d by t he p a rt y a g a i nst w h o m e n f o r ceme n t i s so u g h t . T he e x ec u t i on a n d d el i v ery of t he E q u i t y L i ne T r a n sa c t i on D oc u m e n t s sh al l n o t a l t e r t he f o r ce a n d e f f e ct o f a n y other a g re e m e nt s b e t w e e n t he P a r t i es, a n d t he o bli g ati o ns u n d e r t h ose a g r e e m e nt s.

 

SEC T I O N 1 6 . N O TIC ES . A ny n o t i ces or o t h e r c o m m u ni cati o ns r e q u i r ed o r p e rm it t e d t o be g i v en u n d e r t he t e r m s o f t h i s A g r e e m e n t m u st b e i n w r i t i ng a n d w i l l be d e emed t o h a v e b e en d el i v ered ( A ) u p on r ec ei pt, w h e n d el i v ered p e r so n a l l y ; ( B ) u p on r ec ei pt, w h e n se n t b y f acs i m il e or ema i l w i t h t he s i g n ed d o cume n t a tt ac h e d i n PD F f o r m at ( p r o v i d e d co n f i r m ati o n o f tr a n s m i ss i on i s m ec h a n i ca ll y or e l ect r o ni ca l l y g e n e r ated a n d k e pt on f il e by t he se n d i ng p a r t y ); or ( C ) o n e ( 1) d a y af t er d e p o s i t wi t h a n a t i o n a l l y r ec o g n i z ed o v ern i g ht d eli v e r y ser v i ce, i n e a ch case prop e r l y a d dressed t o t he p a r t y t o r ec e i v e t he same. T he a d d r ess e s a n d f acs i m il e n u m b e r s f o r such c o mm u ni cati o ns sha l l b e :

 

 

ELED INVESTMENT AGREEMENT JULY.2014 22  
 

I f t o t he C omp a n y :

 

ENER GI E H O L D I N G S , INC .

4 8 85 W a r d R o a d , S u i te 3 0 0

W h e a t R i d g e, C o l o r a d o 8 0 0 3 3

T e l e p h o n e : ( 7 2 0) 96 3 - 8 0 5 5

 

I f t o t he I n v e s t o r :

 

D utchess O p p o rt u ni t y F u n d , I I , LP

50 C o m m o n w e al t h A v e n u e , S u i t e 2

B oston, M A 0 2 1 1 6

T e l e p h o n e : ( 6 1 7 ) 30 1 - 4 7 00

 

 

 

 

E ach p a rt y sh al l pro v i de f i v e ( 5) d a y s pri o r w r i t t en n o t i ce t o t he o t h e r p ar t y o f a n y ch a n g e i n a d dress o r f acs i m il e nu m b e r .

 

SEC T I O N 1 7 . N O ASS IG N M EN T . T h i s A g r e e m e n t a n d a n y r i g hts, a g r e e m e n t s or o bli g a t i o n s h e r e u n d er m ay n o t be a ss i g n e d , by o p era t i on o f l a w , m e r g er or o t h e r w i se, a n d a n y p u r p o rt ed ass i g n m e n t by a p a rt y w i t h o ut pri o r w r i tt en co n se n t o f t he other p a r t y w i l l be n ul l a n d v o i d a n d n o t b i n di ng on s u ch o t h e r p a rt y . S u b j ect t o t he preced i n g se n t e n ce, a l l o f t he t e rm s , a g r e e m e n t s, co v e n a n t s, r e p r es e n t a t i o n s, w ar r a nti e s a n d co n d i t i o n s o f t h i s A g r e e m e n t a r e b i n di ng u p o n , a n d i n u r e t o t he b e n e f i t o f a n d a r e e n f orceab l e b y , t he p a r t i es a n d t h ei r r es p e c t i v e succ e ssors a n d ass i g ns.

 

SEC T I O N 1 8 . N O T H I R D PAR T Y BENE FICIA R I ES . T h i s A g r e e m e n t i s i ntend e d f o r t he b e n e f i t o f t he pa r t i es h e r e t o a n d i s n o t f or t he b e n e f i t o f , n o r m ay a n y pro v i s i on h ere o f be e n f o r ced b y , a n y other p e r so n , e x ce p t t h a t t he C ompany a c k n o wl e d g es t h a t t he r i g hts o f t he I n v estor m ay be e n f orced by i t s g e n e r al p ar t n e r .

 

SEC T I O N 1 9 . SURV I VA L. T he i n d em n i f i c a t i on pro v i s i o n s set f or t h i n S ecti o n 1 1 , sh al l sur v i v e e a ch o f t he Cl os i n g s a n d t he t e rm i n a t i on o f t h i s A g r e e m e n t .

 

SEC T I O N 2 0 . PUB LICI T Y . T he C om p a n y a n d t he I n v estor s h al l co n su l t w i t h e a ch other i n i ssu i ng a n y press r e l e a ses or othe r w i se m a k i n g p u b li c s t at e m e n t s w i t h r es p ect t o t h e tr a n sa c t i o n s co n t emp l a t e d h e r e b y a n d no p a r t y sh al l i ssue a n y such press r e l e a se or oth e r w i se m a k e any such p u b li c s t ate m e n t w i t h o ut t he p r i or co n se n t o f t he oth e r p a r t y , w h i ch conse n t sh al l n o t be u n r e a so n a bl y w i t h h e l d or d el a y e d , e x ce p t t h a t no p r i or co n se n t s h a l l be r e q ui r ed i f su c h d i sc l os u r e i s r e q u i r ed b y l a w , i n w h i ch such c a se t he d i sc l os i ng p a r t y sh al l pro v i de t he other p a rt y w i t h pri o r n o t i ce o f such p u b li c s t a t e m e nt . T h e I n v estor a c k n o w l e d g e s t h a t t h i s A g r e e m e n t a n d a l l or p a r t o f t he E q u i t y L i ne T r a n sa c t i on D oc u m e n t s m ay be d e e m ed t o be “m a t eri a l co n tr a c t s ” as t h a t t e r m i s d e f i n e d by It e m 6 0 1 ( b ) ( 1 0 ) o f R e g u l ati o n S - B , a n d t h a t t he C ompany m ay t h e r e f o r e be r e q u i r ed t o f il e such d o c u m e n t s as e x h i b i t s t o r e p or t s o r r e g i s t r ati o n s t at e m e nt s f il ed u n d e r t h e 1 9 33 A ct or t he 1 9 34 A c t . T he I n v est o r f u rt h e r a g r e e s t h a t t he s t at u s o f such d o cume n t s a n d m ate r i a l s as m at e r i al co n tr a c t s sh al l be d e t e r m i n e d so l e l y b y t he C ompan y , i n consu l t a t i o n w i t h its co u ns el .

 

SEC T I O N 2 1 . F U R T HE R ASSURAN C ES . E ach p a r t y sh al l do a n d p e r f o r m , or c a u s e t o be d o ne a n d p e r f o r m e d , a l l such f u r t h e r a c t s a n d t h i n g s, a n d sh al l e x ec u t e a n d d el i v er a l l such

 

ELED INVESTMENT AGREEMENT JULY.2014 23  
 

other a gre e m e n t s , c e rt i f i cates, i ns t r ume n t s a n d d oc u m e nt s, a s t he o t h e r p a rt y m ay r e a so n a bl y r e q u e st i n order t o c a rr y o u t t he i ntent a n d acc o m p li sh t he p u r p o ses o f t h i s A g r e e m e n t a n d t he co n su m m ati o n o f t he t r a ns a c t i o n s co n t e m p l ated h e r e b y .

 

SEC T I O N 2 2 . N O S T R I C T C O NS T R U C T I O N . T he l a n g u a g e us e d i n t h i s A g r e e m e n t wi l l be d e emed t o be t he l a n g u a g e ch o sen by t he p a r t i es t o e x press t h ei r m utual i nten t , a n d no r u l es o f s tr i ct co n s t r ucti o n w i l l be a p p li ed a g a i nst a n y p a rt y , as t he p a rt i es m utua ll y a g r ee t h a t e a ch h a s h a d a f u l l a n d f a i r o p p o r t u ni t y t o r e v i ew t h i s A gr e ement a n d s e e k t he a d v i ce o f co u ns e l on it .

 

SEC T I O N 2 3 . R E M ED I ES . T he I n v es t or sh al l h a v e a l l r i g h t s a n d r e m e di es s e t f o r t h i n t h i s A g r e e m e n t a n d t he R e g i s t r ati o n R i g h t s A g r e e m e n t a n d a l l r i g h t s a n d r e m e di es w h i ch such h ol d e r s h a v e b e en g r a n t ed at a n y t i m e u n d e r a ny other a g r e e m e n t or c o n tr a c t a n d a l l o f t h e r i g h t s w h i ch t he I n v estor h a s by l a w . A n y p e r son h a v i ng a n y r i g hts u n d e r a n y pr o v i s i on of t h i s A g r e e m e n t sh al l be e n t itl ed t o e n f o r ce such r i g h t s sp e c i f i ca ll y ( w i t h o ut p o s t i ng a b o nd or o t h e r sec u r i t y ) , t o r ec o v er d a m a g es by r e a son o f a n y d e f a ul t or b r e a ch o f a n y prov i s i on of t h i s A g r e e m e n t , i nc l u di n g t h e r ec o v ery o f r e a so n a bl e at t o r n e y s f e e s a n d c o s t s, a n d t o e x ercise a l l other r i g hts g r a n t ed by l a w .

 

SEC T I O N 2 4 . PA Y M EN T SE T AS I DE . T o t he e x t e n t t h a t t he C ompany m a k es a p a y m e n t o r p a y m e n t s t o t he I n v estor h e r e u n d er or u n d e r t he R e g i s t r ati o n Ri g h t s A g r e ement o r t he I n v est o r e n f orces o r e x ercis e s i t s r i g h t s h e r e u n d er o r t h e r e u n d er, a n d such p a y m e nt or p a y m e n t s or t he procee d s o f s u ch e n f o r cement or e x ercise or a n y p a r t t h e r e o f are s u bs e q u e n t l y i n v a li d a t e d , d e c l ared t o be fr a u d ul e n t or pr e f ere n t i a l , set as i d e , r ec o v ered fr o m , d i s g o r g e d by or are r e q u i r e d t o be r e f u n d e d , r e p a i d o r othe r w i se r est o r ed t o t he C ompan y , a tr u s t e e , r ec ei v er or a n y other p e r son u n d e r a n y l a w (i nc l u di n g , w i t h o ut li m i t at i o n , a n y b a n k r u p t cy l a w , s t ate or f e d eral l a w , com m on l aw or e q u i t a b l e ca u se of acti o n ) , t h e n t o t he e x t e n t o f a n y such r est o r ati o n t he o bli g ati o n or p a r t t h e r e o f ori g i n all y i ntend e d t o b e sati s f i ed sh al l be r e v i v e d a n d co n t i n u ed i n f u l l f orce a n d e ff e c t as i f s u ch p a y m e n t h a d n o t b e e n m a d e or such e n f o r c e m e n t o r set o f f h a d n o t occ u rr e d .

 

SEC T I O N 2 5 . PR I C I N G O F C O MM O N S TOC K . F o r p u r p o ses o f t h i s A g r e e m e n t , t he V W A P o f t he C o mm on S t o c k sh al l be as r e p o r t ed on a d i r e c t f e e d s e r v i c e .

 

SEC T I O N 2 6 . N O N - D I SC LOS UR E O F N O N - PUB LIC I N FOR M A TI O N .

 

( A ) T he C o m p a ny sh al l n o t d i sc l ose n o n - p u b li c i n f o r m ati o n co n cern i n g t he C om p a n y t o t he I n v esto r , i t s a d v i sors, or i t s r e p r es e nt a t i v es.

 

( B ) N oth i ng h e r e i n sh al l r e q ui r e t he C ompany t o d i s c l ose n o n - p u b li c i n f o rm a t i on t o t he I n v estor or i t s a d v i sors or r e p r es e n t a t i v es, pro v i d e d, h o w e v er, t h a t n o t w i t hstand i ng a n y t h i ng h e r e i n t o t he co nt r ar y , t he C ompany w i l l , as h e r e i n a b o v e pro v i d e d, imm e di ate l y n o t i f y t h e a d v i sors a n d r e p r es e nta t i v es of t he I n v estor a n d , i f a n y , u n d e r w r i t ers, of a n y e v e n t or t he e x i s t e n ce o f a n y c i r c u m s t a n ce ( w i t h o ut a n y o bli g ati o n t o d i sc l ose t he sp e c i f i c e v e n t or c i r cu m s t a n ce) o f w h i ch i t b e comes aware, co n s ti t uti n g n o n- p u b li c i n f o r m ati o n ( w h e t h e r or n o t r e q u e s t ed o f t he C omp a ny sp e c i f i ca ll y or g e n er a l l y d u r i ng t he co u r se o f d u e d ili g e n ce by such p e r so n s or e n t i t i e s ) , w h i ch, i f n o t d i sc l os e d i n t he prospe c t us i nc l u d ed i n t he R e g i s tr ati o n S t at e m e n t w o ul d cause such prosp e c t us t o i nc l u d e a m a t eri a l m i ss t a t e m e n t or t o omit a m at e r i al f act r e q u i r ed t o be s t a t ed t h e r e i n i n order t o m a k e t he s t at e m e nt s, t h e r e i n, i n li g ht o f t h e c i r cum s t a n ces i n w h i ch t h e y w ere m a d e, n o t m i s l e a d i n g . N oth i n g co n t a i n e d i n t h i s S ecti o n 29 sh al l be co n s tr u e d t o m e a n t h a t such p e r so n s or e n t i t i es o t h e r t h a n t h e I n v estor ( w i t h o ut t he w r i tt en co n se n t o f t he I n v estor pri o r t o d i sc l os u r e of such i n f o r m a t i o n ) m a y n o t o b t a i n n o n- p u b li c

 

 

ELED INVESTMENT AGREEMENT JULY.2014 24  
 

i n f o rm a t i on i n t he c o u r s e o f co n d u c t i n g d u e d ili g e n ce i n acc o r d a nce w it h t he t e rm s o f t h i s A g r e e m e n t a n d n o t h i n g h e r e i n sh al l pre v e n t a n y such p e r so n s or e n t i t i es f r o m n o t i f y i ng t h e C ompany of t h e i r o pi n i on t h a t b a sed on such d u e d ili g e n ce by such p e r so n s or e n t i t i es, t h a t t h e R e g i s t r ati o n S t at e m e n t co n t a i ns an u n tr ue s t a t e m e n t o f m at e r i al f a c t or omits a m at e r i al f a c t r e q u i r ed t o be s t a t ed i n t he R e g i s t r ati o n S t a t ement or n e ce s sary t o m ake t he s t a t eme n t s co n t a i n e d t h ere i n, i n l i g h t o f t he c i r c u m s t a nc e s i n w h i ch t h e y w ere m a d e , n ot m i s l e a d i n g .

 

SEC T I O N 2 7 . ACKN O W L E D G E M EN T S O F T H E PAR T I ES . N ot w i t hstand i ng a n y t h i ng i n t h i s A g r e e m e n t t o t he co n tr a r y , t he p a rt i es h e r eto h e r e b y ac k n o w l e d g e a n d a g r ee t o t he f o ll o wi n g : ( A ) t he I n v estor m a k es no r e p r es e n t ati o ns o r c o v e n a n t s t h a t i t w il l n o t e n g a g e i n t r a di ng i n t he sec u r i t i es o f t he C omp a n y , other t h a n t he I n v estor w il l n o t se l l sh o r t a n y of t he C ompan y ' s com m on s t o c k a t a n y t i m e d u r i n g a P r i c i ng P er i o d ; ( B ) t he C ompany sh all , by 8:30 a. m . B ost o n T i m e on t he f o u r t h T r a d i ng D ay f o ll o wi ng t he d ate h e r e o f , f il e a cur r e n t r e p o r t on F o r m 8 - K d i sc l os i ng t he m a t eri a l t er m s o f t he t r a n sa c t i o n s co n t emp l ated h e r e b y a n d i n t he other E q u i t y L i ne T r a n s a c t i on D oc u m e n t s ; ( C ) t he C ompa n y h a s n o t a n d sh al l n o t pro v i de m ate r i al n o n - p u b li c i n f o r m ati o n t o t he I n v est o r u nl ess pri o r t h e r eto t he I n v est o r sh al l h a v e e x ec u t ed a w r i tt en a g r e e m e n t r e g a r d i ng t h e co n f i d e nti ali t y a n d u s e of s u ch i n f o r m ati o n; a n d ( D ) t he C ompany u n d e r s t a n ds a n d co n f i rm s t h a t t he I n v estor w i l l be r e l y i ng on t he a c k n o w l e d g e m e n t s s e t f o r t h i n c l a u ses ( A ) t h r o u g h ( C ) a b o v e i f t he I n v est o r e f f ects a n y t r a n sacti o ns i n t he sec u r i t i es o f t h e C ompan y .

 

[ Si g n a t ure P a g e Fo ll o w s]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ELED INVESTMENT AGREEMENT JULY.2014 25  
 

S IGN A T U R E P A G E O F I NVES T M E N T A G REE M EN T

 

Y o u r s i g n a t ure on t h i s Si g n a t u r e P a g e e v i d e nc e s y o u r a g r e e m e n t t o b e b o u n d by t he t e r m s a n d co n d i t i o n s o f t he I n v est m e n t A greem e nt a n d t he R e g i s tr a t i on Ri g hts A greeme n t as o f t he d a t e f i r s t w r i tt en a b o v e.

 

T he u n d e r s i g n e d s i g n a t ory h e r e b y cer t i f i es t h a t he h a s r e a d a n d u n d e r s t a n ds t he I n v est m e n t A g r e e m e n t , a n d t he r e p r es e nt a t i o n s m a d e by t he u n d e r s i g n ed i n t h i s I n v est m e n t A g r e e m e n t a r e tr ue a n d acc u r at e , a n d a grees t o be b o u n d by i t s t e r m s.

 

DU T C HES S O PP O R T U N I T Y F U ND , I I , L . P .

 

 

 

 

 

  By:   
  Douglas H. Leighton  
  Managing Member of:  
  Dutchess Capital Management, II, LLC General Partner to:  
  Dutchess Opportunity Fund, II, LP  

 

 

 

  ENERGIE HOLDINGS, INC.  
     
     
  By:  
  Harold Hansen  
  Cheif Executive Officer  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ELED INVESTMENT AGREEMENT JULY.2014 26  
 

LIST O F E XH I B I T S

 

E X H I BI T A R e g i s t r ati o n R i g h t s A g r e ement

E X H I BI T B O p i n i on o f C ompan y ' s C o u ns e l

E X H I BI T C P ut N otice

E X H I BI T D P ut S e t t l eme n t S h e e t

ELED INVESTMENT AGREEMENT JULY.2014 27  
 

EXH I B I T A

RE GI S T RA T I O N RI G H TS A G REE M EN T ( A tt a ch e d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A-1

     
 

EXH I B I T B

 

O P I NI O N O F C O M PA N Y’ S C O UNSE L

 

( A tt a ch e d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B-1

     
 

EXH I B I T C

 

F O RM OF P UT N O T ICE

 

Dat e :

 

R E : P ut No t i c e N u m b e r

 

Dear Mr. L e i g h t o n :

 

T h i s i s to i n f orm y ou t h a t as of to d a y , ENER GI E H O L D I N G S , I NC . a De l a w are c orpo r at i on ( t h e " C o m p an y " ) , h ere b y e l e c ts to e x er c i s e i ts ri g h t p u rs u a n t t o t h e I n v e s t m e n t A g r e e m e n t e n tered i nto w i th Dut c h e s s O p p or t u n i t y F u n d II, L P ( “ D ut che s s ” ) to r e q ui r e Dut c h e s s to p u rc h a s e s h a r es of i ts c o m m on s toc k . T he Co m p a n y h e r eb y c er t i f i es t h a t :

 

1. T he u n d er s i g n ed i s t h e d u l y e l e c ted of t h e Co m p a n y .

 

2. T h e r e are n o f u n d a m e n tal c h a n g e s t o t he i n f or m a t i on s et f orth i n t he Re g i s t r at i on S ta t e m e n t wh i c h wou l d re q u i r e the Co m p a n y to f il e a p o s t e ff e c t iv e a m e n d m e n t to t h e R e g i s tra t i on S ta t e m e n t.

 

3. T he Co m p a n y h as p e r f or m ed i n a l l m at e r i a l r e s p e c ts a l l c o v e n a n ts a n d a g r e e m e n ts to b e p e r f or m ed b y the Co m p a n y a nd h a s c o m p li ed i n a l l m at e r i al r e s p e c ts w i t h a l l o b l i g a t i o n s a n d c o n d i t i o ns c o n ta i n e d i n th i s A gree m e n t on or pr i or t o the P u t No t i c e D at e , a n d s h al l c o n t i n u e to p e r f o r m i n a l l m at e r i al r e s p e c ts a l l c o v e n a n ts a n d a g r e e m e n ts to be p e r f or m ed b y t he Co m p a n y t hro u gh t he a p p l i c a b l e P ut Da t e. A l l c o n d i t i o ns to t he d e l i v e r y of t hi s P ut N ot i c e are s a t i s f i e d a s of t h e d a t e h e r eo f.

 

4. T he u n d er s i g n ed h ere b y r e p r e s e n t s , w ar r a nts a n d c o v e n a n ts th a t i t h as m a d e a l l f i li n gs ( “ SE C F i l i n g s ”) r e q u i r e d t o b e m a d e b y i t p u rs u a nt to a p p li c a b l e s e c uri t i es l a w s ( i n cl u d i n g , w i t h o u t li m i ta t i o n , a l l f i l i n g s r e q u i r e d u n d er t h e S e c ur i t i es E xc h a n ge A c t of 1 9 3 4 , wh i c h i n c l u d e For m s 1 0 -Q , 10 - K , 8 - K , etc.). A l l S E C F il i n g s a n d ot h er p u b l i c d i sc l o s ures m a d e b y t h e Co m p a n y , i n c l u d i n g, w i t h o ut li m i ta t i o n , a l l pre s s r e l e a s e s , a n a l y s ts m e e t i ng s a n d c a ll s , etc. (c o l l e c t i v e l y , the “ P u bl i c D i sc l o s ure s ” ) , h a v e b e e n r e v i e wed a n d a p pr o v e d f or r e l e a s e b y t he C o m p a n y ’ s at t o r n e y s a n d, i f c o n t a i n i ng f i n a n ci al i n f or m at i o n , t h e Co m p a n y ’ s i n d e p e n d e n t c e r t i f i ed p u b li c a cc o u n ta n t s . None of the Co m p a n y ’ s P u b li c D i scl o s ures c o n ta i n a n y u ntrue s t a te m e n t of a m at e r i al f a c t or o m i t to s ta t e a n y m at e r i a l f a c t r e q u i r e d to be s ta t e d th e r e i n or n e c e ss a r y to m a k e the s ta t e m e n ts th e r e i n, i n t h e l i g h t of the c i rc u m s ta n c es u n d e r w h i c h t he y were m a d e, n o t m i s l e a d i n g .

 

5. T he a m o u nt of t hi s p ut i s up t o s h a r e s .

 

6. T he P r i ci ng P e r i od ru ns f r om u n t i l .

 

7. T he S u s p e n si on P r i c e i s $ .

 

8. T he c ur r e n t n u m b e r of s h a r es i ss u e d a n d o utsta n d i ng as of t h e C o m p a n y are:

 

9. T he n u m b e r of s h a r es c ur r e n t l y a v a i l a b l e f or r e s a l e p u rs u a nt t o t he Re g i s tra t i o n S ta t e m e n t on F orm S -

1 f or the E q u i t y L i ne are : .

 

[Co m p a n y N a m e]

  [Company Name]
       
  By:    
  Name:    
  Title:    

 

     
 

EXH I B I T D

 

FORM O F P U T S E T T L E M EN T SHEE T

 

D ate :

 

RE : ENERG I E H O L D I N G S , I NC .

 

D e a r :

 

P ursuant t o t he P u t g i v e n by EN E R GI E H O L D I N G S , I NC . t o D u t ch e ss O p p or t u ni t y F u n d , II , LP on 20__, w e are n o w su b m i tt i n g t he a m o u nt o f c om m on sh a r es f or y ou t o i ssue t o D utches s .

 

Pl e a se d el i v er sh a r es t o D u t ch e ss O p p o r t u ni t y F u n d , I I , LP i mm e di ate l y a n d se n d v i a D W A C t o t he f o ll o wi n g accou nt :

 

XX X XX X

 

O nce t h e se sh a r e s a r e r ec ei v ed by us, w e w il l h a v e t he f u n d s w i r ed t o t he C ompan y . R e g ard s ,

D o u g l as H . L e i g hton

     
 

DATE PRICE
Date of Day 1 VWAP of Day 1
Date of Day 2 VWAP of Day 2
Date of Day 3 VWAP of Day 3
Date of Day 4 VWAP of Day 4
Date of Day 5 VWAP of Day 5

 

 

 

LOWEST VWAP IN PRICING PERIOD    
     
PUT AMOUNG    
     
PURCHASE PRICE (NINETY-FOUR PERCENT (94%))    
     
AMOUNT OF SHARES DUE    

 

 

 

 

T he u n d e r s i g n e d h as c o m p l eted t h i s P u t as o f t h i s _th d a y o f _, 2 0 _.

 

  ENERGIE HOLDINGS, INC.  
       
  By:    
  Name:    
  Title:    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     
 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 10.2

RE GI S T R A T IO N R IG H T S A G R E E M EN T

 

R e g i s t r ati o n Ri g h t s A g r e e m e n t ( t he “ A greeme n t ” ) , d a t ed as o f Ju l y 16, 2014, by a n d b e t w e e n E n e r g i e H o l d i n g s , I n c . , a corp o r ati o n o r g a ni z ed u n d e r t he l a w s o f D e l a w ar e , US A (t he “ C ompan y ” ) , a n d D utc h ess O p p o r t u ni t y F u n d , I I , L P , a D e l a w are L i m i t ed P ar t n e r sh i p (t he “ I n v esto r ” ) .

 

W h erea s , i n co n n e c t i on wi t h t he I n v est m e n t A g r e e m e n t by a n d b e t w e e n t he C ompany a n d t he I n v es t or o f t h i s d a t e (t he “ I n v est m e n t A g r e e m e n t ” ) , t he C o m p a n y h a s a g r e e d t o i ssue a n d se l l t o t he I n v estor up t o 5 , 0 0 0,000 sh a r es o f t he C ompan y ’ s C om m on S t o c k , $ . 0001 p a r v a l ue p e r sh a r e (t he “ C om m on S t o c k ” ) , t o be p urchased p u r su a n t t o t h e t e r m s a n d su b j e c t t o t he co n d i t i o n s s e t f o r t h in t he I n v es t m e n t A g r e e m e n t ; a n d

 

W h erea s , t o i n d uce t he I n v estor t o e x ec u t e a n d d el i v er t he I n v est m e n t A g r e e m e n t , t he C ompany h a s a g r e e d t o pro v i de cer t a i n r e g i s tr a t i on r i g h t s u n d e r t he S e c uriti e s A ct o f 1 9 3 3 , as amend e d, a n d t he r u l es a n d r e g u l a t i o n s t h ereun d e r , or a n y s i m i l ar succ e ss o r s t a t u t e ( co ll ecti v e l y , t he “ 1 9 33 A c t ” ) , a n d a p p li ca bl e s t ate sec u r i t i es l a w s, w i t h r es p ect t o t he sh a r es o f C om m on S t o c k i ssu a b l e p u r su a nt t o t he I n v es t m e nt A g r e e m e n t .

 

N ow t h e r e f or e , i n co n s i d e r ati o n o f t he f o r e g o i n g pr o m i ses a n d t he m u t u a l co v e n a n t s co n t a i n e d h e r e i n a ft er a n d other g o o d a n d v a l u a b l e co n s i d e r ati o n, t he r e c e i pt a n d s u f f i c i e n cy of w h i ch a r e h e r e b y a c k n o wl e d g e d , t he C ompany a nd t he I n v est o r h e r e b y a g r ee as f o ll o w s:

 

S e c ti on 1 . DE FINI T IO N S .

 

A s us e d in t h i s A greem e nt, t he f o ll o w i ng t e rm s s h a l l h a v e t he f o ll o w i ng m e a ni n g s:

 

“ E x ec u t i on D at e ” m e a n s t he d a t e o f t h i s A g r e e m e nt s e t f o r t h abo v e.

 

“ P erson ” m e a ns a corp o r ati o n, a li m it ed li a bili t y c ompan y , an ass o c i ati o n , a p a rt n e r sh i p, an or g a ni z a t i o n , a b u s i n e ss, an i n di v i d u a l , a g ov e r nme n t al or p oli t i cal s u b di v i s i on t h e r e o f o r a g o v ern m e n t al a g e n c y .

 

“ P r i nc i p a l M ar k e t ” sh al l m e a n N as d aq C a pi t al M a r k e t , t he NYS E A m e x , t he N ew Y ork S t o c k E x ch a n g e, t he N as d aq G l o b al M ar k e t , t he N as d aq G l o b al S e l e ct M ar k et or t he O TC B u ll etin B o a r d, w h i ch e v e r i s t he pri n c i p a l m ar k et on w h i ch t he C om m on St o c k o f t he C ompany i s li s t e d .

 

“ R e g i s t e r , ” “ R e g i s t e r e d , ” a n d “ R e g i s t r ati o n ” r e f er t o t he R e g i s tr a t i on e ff ected by prepar i n g a n d f ili n g o n e ( 1) o r m ore R e g i s t r a t i on S t at e m e nt s i n comp li a nce w i t h t he 1 9 33 A ct a n d p u r su a nt t o R u l e 4 1 5 u n d e r t he 1 9 33 A ct or a n y succ e ssor r u l e pro v i d i ng f or o ff e r i n g sec u r i t i es on a co n t i n u o u s b a s i s ( “ R u l e 4 1 5 ” ) , a n d t he d e c l ara t i on or o r d e r i ng o f e f f ecti v e n ess o f such R e g i s tr a t i on S t at e m e n t ( s) by t he U n i t ed S t ates S ec u r i t i es a n d E x ch a n g e C o mm i ss i on ( t he “ SEC ”) .

 

“ R e g i s tr a bl e S ec u r i t i e s ” m e a ns ( i ) t he sh a r e s o f C om m on S t o c k i ssu e d or i ssu a b l e p u r su a nt t o t he I n v est m e n t A g r e e m e n t , ( ii ) t he F ee S h a r es and ( iii ) a n y s h a r es o f ca pi t al s t o c k i ssued or i ssu a b l e wi t h r es p ect t o such sh a r es o f C om m on S t o c k , i f a n y , as a r es ul t of a n y s t o c k sp li t , s t o c k d i v i d e n d , r e c a pi t a li z ati o n, e x ch a n g e or s i m il ar e v e n t or oth er wi se, w h i ch h a v e n o t b e en ( x ) i nc l u d ed i n t he R e g i s t r ati o n S t at e m e n t t h a t h a s b e en d e c l a r ed ef f ecti v e by t he S E C , or

 

 

 

 

ELED.REGISTRATION.RIGHTS.JULY.2014 1  
 

( y ) so l d u n d e r c i r c u m s t a nc e s m e e t i n g a l l o f t he a p pli ca bl e co n d i t i o n s o f R u l e 1 4 4 ( or a n y s i m il ar pro v i s i on t h e n in f o r c e ) u n d er t he 1 9 33 A c t .

 

“ R e g i s tr a t i on S t at e m e n t ” m e a ns t he r e g i s t r at i on s t at e m e n t o r s t a t e m e n t s o f t h e

C ompa n y f il ed u n d e r t he 1 9 33 A c t co v eri n g t he R e g i s t r a bl e Sec u r i t i es.

 

Al l ca pi t a l i z ed t er m s us e d i n t h i s A g r e e m e n t a n d n o t ot h er w i se d e f i n e d h e r e i n sh al l h a v e t he s a m e m e a n i n g a sc r i b e d t o t h e m a s i n t he I n v est m e n t A greeme n t .

 

S e c ti on 2 . RE GI S T R A T IO N .

 

( a) S u b j ect t o S e c t i on 3 ( g ) , t he C ompany sh all , wi t h i n t w e n t y - o n e ( 2 1 ) d a y s a ft e r t he d a t e o f t h i s A gree m e nt , f il e w i t h t he SE C t he R e gi s tr ati o n S t a t e m e n t o r R e g i s t r ati o n S t a t e m e nt s ( as i s n e cess a r y ) on F o r m S- 1 ( o r , i f such f o r m i s u n a v a i l a bl e f or such a r e g i s tr a t i o n , on su c h other f o r m as i s a v a il a bl e f o r such r e g i s t r ati o n ) , co v eri n g t he r es al e o f a l l of t he R e g i s tr a bl e S ec u r i t i es, w h i ch R e g i s tr a t i on S t ate m e n t ( s) s h a l l s t ate t h at , i n acc o r d a nce wi t h R u l e 4 1 6 pro m u l g ated u n d e r t he 1 9 33 A c t , such R e g i s t r a t i on S t ate m e n t a l so cov e r s such i n d ete rm i n a t e n u m b e r o f a d d i t i o n al sh a r es o f C o m m on S t o c k as m ay b e come i ssu a b l e u p o n s t o c k sp li t s, s t o c k d i v i d e n d s or s i m il ar t r a ns a c t i o n s . T he C omp a ny sh al l i n i t i a l l y r e g i s t er f or r es al e 5 , 0 0 0 , 0 0 0 sh a r es o f C o m m on S t o c k, e x ce p t t o t he e x t e n t t h a t t he SE C r e q u i r es t h e sh a r e a m o u nt t o be r e d uc e d as a co n d i t i on o f e ff e c t i v e n ess.

 

( b) T he C ompany a g r e e s n o t t o i nc l u d e a n y other sec u r i t i es i n t he R e g i s tr a t i on S t at e m e n t co v eri n g t he R e g i s t r a bl e S ec u r i t i es w it h o ut t he I n v est o r ’ s pri o r w r i tt en co n se n t w h i ch t he I n v estor m ay w i t h h o l d i n i t s so l e d i sc r eti o n. F ur t h e rm o r e, t he C ompa n y a g r e e s t h a t i t w il l n o t f il e a n y oth e r R e g i s t r at i on S t at e m e n t f o r o t h e r sec u r i t i es, u n t i l t h i r t y c a l e n d a r d a y s a f t e r t he R e g i s t r ati o n S t at e m e n t f or t he R e g i s t r a bl e Sec u r i t i es is dec l a r ed e ff e c t i v e by t he SEC .

 

S e c ti on 3 . RE L A T E D O B LI G A T IO N S .

 

A t such t i m e as t he C o m p a ny i s o b li g ated t o pre p are a n d f il e t he R e g i s t r a t i on S t ate m e n t wi t h t he SE C p u r su a n t t o S ecti o n 2( a ) , t he C o m p a ny sh al l h a v e t he f o ll o wi ng o bli g a t i o n s w i t h r es p ect t o t he R e g i s t r ati o n S t at e m e n t :

 

( a) T he C ompany sh al l u s e a l l com m erci all y r e a so n a bl e ef f o r t s t o ca u s e such R e g i s t r ati o n S t at e m e n t r e l ati n g t o t he R e g i s t r a bl e S ec u r i t i es t o b e come e f f e c t i v e w i t h i n n i n e t y ( 9 0 ) d a y s af t er t he d a t e t h a t t he R e g i s tr a t i on S t a t ement i s f il ed a n d sh al l k e e p such R e g i s tr a t i on S t at e m e n t e ff e c t i v e u n t i l t he e a r li er t o o c cur o f t he d a t e on w h i ch ( A ) t h e I n v estor sh al l h a v e so l d a l l t he R e g i s t r a bl e S ec u r i t i es; or ( B ) t he C o m p a ny h a s no r i g h t t o se l l a n y a d d i t i o n al sh a r es o f C o m m on S t o c k u n d e r t he I n v es t m e n t A g r e e m e n t (t he “ R e g i s t r ati o n P eriod ” ) . T he R e g i s t r ati o n S t at e m e n t ( i nc l u di ng a n y amend m e nts o r su p p l e m e n t s t h e r eto a n d p r os p e c t us e s co n t a i n e d t h e r e i n) sh al l n o t co n t a i n a n y u n tr ue s t at e m e n t o f a m a t eri a l f act or o m i t t o s t ate a m at e r i al f a ct r e q u i r ed t o be s t ated t h e r e i n , or n e c ess a r y t o m a k e t he s t at e m e n t s t h e r e i n , i n li g h t o f t he c i r cum s t a n ces i n w h i ch t h e y w ere m a d e , n o t m i s l e a d i n g . T he C ompany sh al l use a l l com m e r c i a ll y r e a so n a bl e e f f o rt s t o r e sp o nd t o a l l SE C com m e n t s w i t h i n t en ( 1 0 ) b u s i n e ss d a y s fr o m r e ce i pt o f such c o mm e n t s by t he C omp a n y . T he C o m p a ny sh al l use a l l co m m e r c i a ll y r e a so n a bl e ef f o rt s t o c a use t he R e g i s t r ati o n S t a t eme n t r e l ati n g t o t he R e g i s t r a bl e S ec u r i t i es t o b e come e ff ecti v e no l a t er t h a n f i v e ( 5) b u s i n e ss d a y s a f t er n o t i ce f r o m t he SE C t h a t t he R e g i s t r ati o n S t a t e m e n t m ay be d e c l ared e f f ecti v e. T he I n v estor a g r e e s t o pro v i de a l l i n f o rm a t i on w h i ch it i s r e q u i r ed by l aw t o p r o v i de t o t he C o m p a n y , i nc l u di ng t he i n t e n d e d m eth o d

ELED.REGISTRATION.RIGHTS.JULY.2014 2  
 

o f d i sp o s i t i on o f t he R e g i s tr a bl e S ec u r i t i es, a n d t h e C ompan y ’ s o bli g ati o ns set f o r t h a b o v e sh a ll be co n d i t i o n ed on t he r e ce i pt o f such i n f o rm a t i o n .

 

( b) T he C o m p a ny sh al l pr e p a r e a n d f il e w i t h t he S E C such a m e n dme n t s ( i nc l u di ng p o s t- e ff e c t i v e amendm e nts) a n d su p p l eme n t s t o t he R e g i s t r a t i on S t at e m e nt a n d t he prospe c t us us e d in co n n e c t i on w i t h such R e g i s t r ati o n S t at e m e nt , w h i ch p r os p ectus i s t o be f il ed p u r s u a nt t o R u l e 4 2 4 pro m u l g ated u n d e r t he 1 9 33 A c t , as m ay be n e cess a r y t o k e e p such R e g i s t r ati o n S t at e m e n t e ff e c t i v e d u r i ng t he R e g i s tr a t i on P er i o d , a n d, d u r i ng such p e r i o d , c o m p l y w i t h t he pro v i s i o n s of t he 1 9 33 A ct w i t h r es p e c t t o t he d i sp o s i t i on o f a l l R eg i s t r a bl e S ec u r i t i es o f t he C ompany co v ered by such R e g i s tr a t i on S t a t e m e n t u n t i l such t i m e a s a l l of such R e g i s tr a bl e S ec u r i t i es sh al l h a v e b e en d i sp o sed o f i n acc o r d a n ce w i t h t he i ntend e d m ethods o f d i sp o s i t i on by t he I n v estor t h e r e o f a s set f o rt h i n such R e g i s tr a t i on S t at e m e n t . I n t h e e v e n t t he n u m b e r o f sh a r es o f C o m m on St ock co v ered by t he R e g i s t r ati o n S t a t eme n t f i l ed p u r su a nt t o t his A g r e e m e n t i s at a n y t i m e i ns u f f i c i e n t t o co v er all of t he R e g i s tr a bl e S e c uriti e s, t he C o m p a ny sh al l amend such R e g i s tr a t i on S t at e m e n t , o r f il e a n e w R e g i s tr a t i on S t a t eme n t ( on t he sh o r t f o r m a v a il a bl e t h e r e f o r , i f a p p li ca bl e), or b o t h, so as t o co v er a l l o f t he R e g i s t r a bl e S ec u r i t i e s , i n e a ch cas e , a s so o n as prac t i ca bl e, b u t i n a n y e v e n t wi t h i n f i ft y (5 0) c a l e n d a r d a y s a f t er t h e n e cess i t y t h e r e f o r aris e s ( b a sed on t he t h e n P u r ch a se P r i ce o f t he C o m m on S t o c k a n d ot h e r r e l e v a n t f a c t o r s on w h i ch t he C ompany r e a so n a b l y e l ects t o r e l y ) , ass u m i ng t he C om p a n y h a s s u f f i c i e n t a u t h o r i z ed sh a r es at t h a t t i m e , a n d i f i t d o es n ot , w i t h i n f i ft y ( 50) ca l e n d a r d a y s a ft er such sh a r es are a u t h o r i z e d . T he C ompany sh al l use com m e r c i a ll y r e a s o n a b l e ef f o r t s t o ca u se such amen d m e n t a n d / or n e w R e g i s tr ati o n S t at em e n t t o b e c o m e e ff e c t i v e as so o n as pra c t i ca bl e f o ll o wi ng t he f ili ng t h e r e o f .

 

( c) T he C ompany sh al l m ake a v a il a bl e t o t he I n v estor w h o se R e g i s tr a bl e S ec u r i t i es are i nc l u d ed i n a n y R e g i s tr a t i on S t at e m e n t a n d i t s l e g al co u ns e l w i t h o ut c h a r g e ( i ) i f r e q u est e d by t he I n v esto r , pro m p t l y af t er t he s a m e is p r e p a r ed a n d f il ed w i t h t he S E C at l e ast o n e ( 1) co p y o f such R e g i s t r ati o n S t a t eme n t a n d a n y amen d m e nt ( s) t h e r e t o, i nc l u di ng f i n a nc i al s t at e m e nt s a n d sch e d ul es, a l l d o cumen t s i nc o r p o r a t ed t h e r e i n by r e f erence a n d a l l e x h i b i t s, t he pr o sp e c t u s i nc l u d ed i n such R e g i s tr a t i on S t at e m e n t ( i nc l u d i ng e a ch pre li m i n a r y prospect u s) a n d , w i t h r e g ards t o such R e g i s tr a t i on S t at e m e n t( s ) , a n y c o rr es p o n d e nce by or on b e h a l f o f t he C ompany t o t he SE C or t he s t a f f o f t he SE C a n d a n y cor r es p o n d e nce fr om t he SE C or t he s t a f f o f t he SE C t o t he C ompany o r i t s r e p r es e n t a t i v es; a n d ( ii ) u p on t he e ff ecti v e n ess o f a n y R e g i s tr a t i on S t at e m e nt , t he C o m p a ny sh al l m a k e a v a il a bl e cop i es of t he pr o sp e c t u s , v i a E D G AR , i nc l u d ed i n such R e g i s t r ati o n S t at e m e n t a n d a l l a m e n dme n t s a n d supp l e m e n t s t h e r e t o.

 

( d) T he C ompany sh al l use com m e r c i a ll y r e a so n a bl e ef f o r t s t o ( i ) r e g i s t e r a n d q u al i f y t he R e g i s t r a bl e S ec u r i t i e s co v ered by t he R e g i s t r ati o n S t a t eme n t u n d e r s uch oth e r sec u r i t i es o r “ b l ue s k y ” l a w s of such s t ates i n t he U n i t ed St ates as t he I n v est o r r e as o n a b l y r e q u e s t s ; ( ii ) prepare a n d f il e i n t h o se j uris di c t i o n s, such a m e n dmen t s ( i nc l u di ng p o s t - e ff e c t i v e amendment s ) a n d su p p l emen t s t o su c h r e g i s t r ati o ns a n d q u al i f i cati o ns as m ay be n e cess a r y t o m a i nta i n t he e f f e c t i v e n ess t h e r e o f d u r i ng t he R e g i s t r ati o n P e r i o d ; ( iii ) t a k e such o t h e r act i o n s as m ay be n e cess a r y t o m a i nta i n such r e g i s tr a t i o n s a n d q u al i f i cati o ns i n e ff ect a t a l l t i m e s d u r i ng t h e R e g i s t r ati o n P eri o d , a n d ( i v ) t a k e a l l oth e r a c t i o n s r e a so n a bl y n e cess a r y or a d v i sa bl e t o q u ali f y t he R e g i s t r a bl e S ec u r i t i e s f or sa l e i n such j u r i s d i c t i o n s; p r o v i d e d, h o w ev e r , t h a t t he C ompany sh al l n o t be r e q u i r ed i n co n n e c t i on t h e r e w i t h or as a co n d i t i on t h e r e t o t o ( x ) q u al i f y t o do b u s i n e ss i n a n y j uris di c t i on w h e r e i t w o u l d n o t othe r w i se be r e q u i r ed t o q u ali f y b u t f or t h i s S ecti o n 3( d ) , or ( y ) su b j e ct i t se l f t o g e n e r al t a x ati o n i n a n y such j uris di c t i o n . T he C ompany sh al l pro m p t l y n o t i f y t he I n v estor w ho h ol ds R e g i s tr a bl e S ec u r i t i es o f t he r e ce i pt by t he C ompany o f a n y n o t i f i cati o n wi t h r es p ect t o t he sus p e n s i on o f t he r e g i s t r ati o n or q u a li f i cati o n o f a n y of t h e R e g i s t r a bl e S ec u r i t i es f o r sa l e u n d e r t he sec u r i t i es or “ b l ue s k y ” l a w s of a n y j uris di c t i on i n t he

ELED.REGISTRATION.RIGHTS.JULY.2014 3  
 

U n i t ed S t ates o r i t s r e ce i pt o f a ct u a l n o t i ce o f t he i n i t i ati o n or t hre a t e ni ng o f a n y procee di ng f o r such p u r p o se.

 

( e) A s pro m ptly as prac t i c a b l e af t er b e c o m i ng a w are of such e v e nt , t he C ompany sh al l n o t i f y t he I n v est o r i n w r i t i ng o f t he h a p p e ni ng o f a n y e v e n t as a r es ul t o f w h i ch t he prospe c t u s i nc l u d ed i n t he R e g i s tr a t i on S t at e m e nt , as t h e n i n e ff e c t , i nc l u d es an u nt r ue s t at e m e n t o f a m at e r i al f act or o m i ss i on t o s t ate a m at e r i al f act r e q u i r ed t o be s t ated t h e r e i n o r n e cess a r y t o m a k e t he s t at e m e n t s t h e r e i n, i n li g h t o f t he c i r c u m s t a n c e s u nder w h i ch t h e y w ere m a d e, n o t m i s l e a d i ng ( “ R e g i s t r ati o n D e f a ul t ” ) a n d use a l l d ili g e n t ef f o r t s t o pro m p t l y prepare a su p p l ement or a m e n d m e n t t o such R e g i s tr a t i on S t at e m e n t a n d t a k e a n y other n e cess a r y s t e p s t o cure t he R e g i s t r ati o n D e f a ul t ( w h i ch, i f such R e g i s tr a t i on S t at e m e n t i s on F o r m S - 3, m ay co n s i st o f a d o c u m e n t t o be f il ed by t he C om p a n y w i t h t he SE C p u r s u a n t t o S e c t i on 1 3 ( a ) ,

1 3 ( c ) , 14 or 1 5 ( d ) o f t he 1 9 34 A ct ( as d e f i n e d b e l o w ) a n d t o be i nc o r p o r a t ed by r e f er e nce i n t he prospect u s) t o c o rr e c t s uch u n tr ue s t a t em e nt o r omiss i o n , a n d m a k e a v a il a bl e co pi es of such

su p p l ement o r a m e n dm e nt t o t he I n v esto r . T he C ompany sh al l a l so pro m ptly n o t i f y t he I n v est o r

( i ) w h e n a pr o sp e c t us o r a n y prosp e c t us su p p l e m e n t or p o s t - e ff e c t i v e amendme n t h a s b e en f il e d , a n d w h e n t he R e g i s t r ati o n S t at e m e n t or a n y p o s t - e ff e c t i v e a m e n dment h a s b e c o m e e f f e c t i v e; ( ii ) o f a n y r e q u est by t he SE C f o r a m e n dmen t s or su p p l e m e n t s t o t he R e g i s t r ati o n S t at e m e n t o r r e l ated p r os p ectus o r r e l ated i n f or m a t i o n , ( iii ) o f t he C ompan y ’ s r e a so n a bl e d e t e r m i n a t i on t h a t a p os t - e ff e c t i v e amendme n t t o t he R e g i s t r ati o n S t at e m e n t w o ul d be a p propri a t e , ( i v ) i n t he e v e n t t he R e g i s t r a t i on S t at e m e n t i s no l o n g er e f f e c t i v e, or ( v ) i f t he R e g i s t r ati o n S t a t e m e n t i s s t a l e as a r es ul t o f t he C ompan y ’ s f a il ure t o t i m e l y f il e i t s f i n a nc i a l s or othe r w i se. I f a R e g i s t r a t i on D e f a ul t occ u r s d u r i n g t he p e r i od co m m e n c i ng on t he P u t N otice D ate a n d e n d i ng on t he Cl os i ng D ate, t he C o m p a n y ac k n o w l e d g es t h a t it s f a il ure t o cu r e s u ch a R e g i s t r ati o n D e f a ul t w i t h i n t en ( 1 0 ) b u s i n e ss d a y s w i l l ca u se t he I n v estor t o s u ff er d a m a g es i n an amou n t t h a t w il l be d i f f i cult t o asc e rt a i n .

 

(f ) T he C o m p a ny sh al l use a l l com m e r c i a ll y r e a so n a bl e e f f o rt s t o pre v e n t t he i ssu a nce of a n y s t op or d er or other sus p e n s i on o f e f f e c t i v e n ess of t he R e g i s t r at i on S t a t eme n t , or t he sus p e n s i on o f t he q u al i f i cati o n o f a n y o f t he R e g i s t r a bl e S ec u r i t i es f or sa l e i n a n y j uris di c t i on a n d, i f such a n order or s u sp e ns i on i s i ssu e d, t o o b t a i n t h e w i t h d r awal of such ord e r or sus p e n s i on at t he e a r li est p o ss i b l e m ome n t a n d t o n o t i f y t he I n v estor h ol d i ng R e g i s tr a b l e S ec u r i t i es b ei ng so l d of t he i ssu a nce o f such o r d e r a n d t he r es ol uti o n t h e r e o f or i t s r ec ei p t o f actual n o t i ce o f t he i n i t i ati o n or t hre a t o f a n y p r oc e e di ng co n c e r n i ng t h e ef f e c t i v e n ess of t he R e g i s t r ati o n S t at e m e n t .

 

( g) T he C o m p a ny sh al l p e r m i t t he I n v estor a n d o n e ( 1) l e g al co u ns el , d e s i g n ated by t he I n v esto r , t o r e v i ew a nd co m m e n t u p on t he R e g i s t r ati o n S t at e m e n t a n d a l l amen d m e n t s a n d su p p l emen t s t h e r e t o a t l e a st o n e ( 1 ) ca l e n d a r d ay pri o r t o t h ei r f ili ng w i t h t he SEC . H o w e v er, a n y p o s t p o n e m e n t o f a f ili ng of a R e g i s tr a t i on S t ate m e n t or a n y p o s t p o n e m e n t o f a r e q u e s t f o r acc el era t i on or a n y p o s t p o n e m e n t o f t he e f f e c t i v e d a t e or ef f e c t i v e n ess o f a R e g i s t r ati o n S t at e m e n t by w r i tt en r e q u est o f t he I n v estor ( co ll ecti v e l y , t he " I n v esto r ' s D e l a y " ) sh al l n o t act t o tr i g g er a n y p e n al t y o f a n y k i n d , o r a n y cash am o u n t d u e o r a n y i n - k i nd a m o u nt d u e t he I n v est o r fr o m t he C ompany u n d e r a n y a n d a l l a g r e e m e nt s of a n y n a t ure or k i nd b e t w e e n t he C ompany a n d t he I n v esto r . T he e v e n t ( s) o f an I n v esto r ' s D e l ay sh a l l act t o s u sp e nd a l l o bli g ati o ns o f a n y k i nd or n a t ure o f t he C ompany u n d e r a n y a n d a l l a g r e e m e n t s o f a n y n a t ure or k i nd b e t w e e n t h e C ompany a n d t he I n v es t or.

 

( h) T he C ompany sh al l h o l d i n co n f i d e nce a n d n o t m a k e a n y d i sc l os u r e o f i n f o rm a t i on co n c e r n i ng t he I n v estor u nl ess ( i ) d i sc l os u r e o f such i n f o r m ati o n i s n e cess a r y t o comp l y w i t h f e d eral or s t ate sec u r i t i es l a w s, ( ii ) t he d i sc l os u r e of such i nfo rm a t i on i s n e cess a r y

ELED.REGISTRATION.RIGHTS.JULY.2014 4  
 

t o a v o i d or cor r ect a m i ss t at e m e n t o r omiss i on i n a n y R e g i s tr a t i on S t at em e n t , ( iii ) t he r e l e a se o f such i n f o r m ati o n i s ord e r ed p u r su a nt t o a su b p o e na or oth e r f i n al , n o n - a p p e a l a bl e order f r o m a co u r t or g o v er n m e n t al b o dy of comp e t e n t j uri s d i c t i o n , ( i v ) such i n f o r m ati o n h a s b e en m a d e g e n e r a ll y a v a il a b l e t o t h e p u b li c other t h a n by d i sc l os u r e i n v i o l ati o n of t h i s A g r e e m e n t or a n y other a greeme n t , o r ( v ) t he I n v estor h a s co n se nt ed t o such d i sc l os u r e . T he C o m p a ny a g r e e s t h a t i t sh all , u p on l e a r n i ng t h a t d i sc l os u r e o f such i n f o r m a t i on co n cern i ng t he I n v estor i s so u g h t i n or by a co u r t o r g o v ern m e n t al b o dy of comp e t e n t j uris di c t i on or t hro u g h o t h e r m e a n s , g i v e pro m p t w r i tt en n o t i ce t o t he I n v est o r a n d a ll ow t he I n v est o r , a t t he I n v esto r ’ s e x p e ns e , t o u n d e rt a k e a p p r o p r i ate a c t i on t o pre v e n t d i sc l os u r e o f , o r t o o b t a i n a pr o t ecti v e order co v eri n g such i n f o rm a t i o n .

 

(i ) T he C o m p a ny sh al l use a l l com m e r c i a ll y r e a so n a bl e e f f o rt s t o m a i nta i n d e s i g n a t i on a n d q u o t a t i on o f a l l t he R e g i s t r a b l e S ec u r i t i es co v ered by a n y R e g i s tr ati o n S t at e m e n t on t he P r i nc i p a l M ar k e t . T he C ompany sh al l p a y a l l f e e s a n d ex p e n ses i n co n n e c t i on wi t h sa t i s f y i ng i t s o bli g a t i on u n d e r t h i s S e c t i on 3 ( i) .

 

( j ) T he C ompany sh al l prov i de a tr a n s f e r a g e nt f o r a l l t he R e g i s tr a bl e S ec u r iti es n o t l ater t h a n t he e ff e c t i v e d ate o f t he f i r s t R e g i s t r ati o n S t at e m e n t f il ed p u r su a nt h e r et o .

 

( k) I f r e q u e s t ed by t he I n v esto r , t he C o m p a ny sh al l ( i ) as so o n as r e a s o n a bl y prac t i cal i nc o r p o r ate i n a prospe c t us su p p l e m e n t or p o s t - e ff e c t i v e amendment such i n f o rm a t i o n as t he I n v estor r e a so n a bl y d e t er m i n e s sh o u l d be i nc l u d ed t h e r e i n r e l ati n g t o t he sa l e a n d d i s tr i b u t i on o f R e g i s t r a bl e S ec u r i t i e s , i nc l u di n g , w i t h o ut li m i t a t i o n , i n f o r m at i on w i t h r es p ect t o t h e o f f e r i ng o f t he R e g i s tr a b l e S ec u r i t i es t o be so l d i n such of f eri n g; ( ii ) m a ke a l l r e q u i r ed f ili n g s o f such prospectus su p p l e m e n t or p o s t - e ff e c t i v e a m e n dme n t as so o n as r e a so n a bl y p o ss i b l e a f t e r b ei ng n o t i f i ed o f t he m a t t ers t o be i nc o r p o r at e d i n such prospectus su p p l e m e n t or p o s t - e ff e c t i v e amendme n t ; a n d ( iii ) su p p l ement or m a k e a m e n dme n t s t o a n y R e g i s t r ati o n S t a t eme n t i f r e a so n a bl y r e q u e s t ed by t he I n v est o r .

 

(l ) T he C omp a ny sh al l u se a l l com m e r c i a ll y r e as o n a b l e ef f o r t s t o c a use t he R e g i s t r a bl e S ec u r i t i es c o v ered by t he a p p li ca bl e R e g i s t r ati o n S t a t e m e n t t o be r e g i s t e r ed w i t h o r a p pro v ed by such other g o v ern m e n t al a g e n c i es or a u t h o r i t i es as m ay be n e cess a r y t o f a c ili t ate t he d i sp o s i t i on o f such R e g i s t r a bl e Sec u r i t i es.

 

( m) T he C o m p a ny sh al l othe r w i se use a l l com m erci all y r e a so n a bl e ef f o r t s t o comp l y wi t h a l l a p p li ca bl e r u l es a n d r e g u l ati o ns o f t he SE C i n co n n e c t i on w i t h a n y r e g i s t r ati o n h e r e u n d e r .

 

( n) W i t h i n o n e ( 1) b u s i n e s s d a y a f t er t he R e g i s t r ati o n S t at e m e n t w h i ch i nc l u d es R e g i s t r a bl e S ec u r i t i es i s d e c l ared ef f e c t i v e b y t he SEC , t he C ompany sha l l d e li v er t o t he tr a n s f er a g e n t f or such R e g i s t r a bl e S ec u r i t i e s , w i t h co pi es t o t he I n v esto r , a w r i tt en n o t i f i c a t i on t h a t such R e g i s tr a t i on St ate m e n t h a s b e en d e c l a r ed e ff ecti v e by t he SE C .

 

S e c ti on 4 . O B L I G A T IO N S O F T H E I NVES T OR .

 

( a) A t l e a st f i v e ( 5) ca l e n d a r d a y s p r i or t o t he f i r st a n t i c i p a t ed f ili ng d a t e o f t he R e g i s t r ati o n S t a t e m e n t t he C ompany sh al l n o t i f y t he I n v estor i n w r i t i ng o f t he i n f o r m ati o n t he C ompany r e q u i r e s fr om t he I n v est o r f or t he R e g i s t r ati o n S t at e m e nt . I t sh al l be a co n d i t i on preced e nt t o t he o bl i g a t i o n s o f t he C ompany t o comp l ete t he r e g i s tr a t i on p u r su a n t t o t h i s A g r e e m e n t w i t h r es p ect t o t he R e g i s t r a bl e S ec u r i t i es a n d t he I n v est o r a grees t o f urn i sh t o t he C ompany t h a t i n f o r m a t i on r e g a r d i ng i t sel f , t he R e g i s t r a bl e S ec u r i t i es a n d t he i ntend e d m eth o d

ELED.REGISTRATION.RIGHTS.JULY.2014 5  
 

o f d i sp o s i t i on of t he R e g i s t r a bl e S ec u r i t i es as sh al l r e a so n a b l y be r e q u i r ed t o e ff e c t t he r e g i s tr a t i on o f t he r es a l e of such R e g i s tr a bl e S ec u r i t i es a n d t he I n v estor sh al l e x ec u t e such d o cumen t s i n co n n e c t i on wi t h such r e g i s t r ati o n as t he C ompany m ay r e a so n a bl y r e q u e s t . T he I n v estor co v e n a n t s a n d a g r e e s t h a t , i n co n n e c t i o n wi t h a n y sa l e of R e g i s tr a bl e S ec u r i t i es by i t p u r su a nt t o t he R e g i s t r a t i on S t ate m e n t , i t sh al l c omp l y w i t h t he “ Pl an o f Di s tr i b u t i o n ” se c t i on o f t he t h e n c u rr e n t p r os p e c t us r e l ati n g t o such R e g i s tr a t i on S t a t eme n t .

 

( b) T he I n v est o r , by i t s a cce p t a n ce o f t he R e g i s tr a bl e S ec u r i t i e s , a g r e es t o co o p e r ate w i t h t he C ompany as r e a so n a bl y r e q u e s t ed by t he C ompany i n co n n e c t i on wi t h t he prepar a t i on a n d f ili n g o f a n y R e g i s tr a t i on S t a t e m e n t h e r e u n d e r .

 

( c) T he I n v est o r a g r e e s t h a t , u p on r ec ei pt o f w r i tt en n o t i ce f r o m t he C ompa n y of t he h a p p e ni ng o f a n y e v e n t o f t he k i nd d e s c r i b e d in S ecti o n 3 ( f ) or t he f i r s t s e n t e n ce o f S ecti o n 3 ( e ) , t he I n v estor w il l i mm e di ate l y d i sco n t i n u e d i sp o s it i on of R e g i s t r a bl e S ec u r i t i es p u r su a nt t o a n y R e g i s t r ati o n S t a t e m e nt ( s ) co v eri n g t he r es al e o f such R e g i s tr a bl e S ec u r iti es u n t i l t he I n v est o r ’ s r ec ei pt o f t he co pi es o f t he su p p l emen t ed or a m e n d e d prospe c t us co n t e m p l ated by S ecti o n 3 ( f ) or t he f i r st se n t e n ce o f S ecti o n 3 ( e ) .

 

S e c ti on 5 . EXPENSES O F RE GI S T R A T ION .

 

Al l r e a so n a bl e e x p e ns e s , oth e r t h a n u n d e r w r i t i ng d i sc o u n t s a n d c o m m i ss i o n s a n d ot h e r t h a n as set f o r t h i n t he I n v est m e n t A g r e e m e nt, i nc u rr ed i n co n n e c t i on w i t h r e g i s tr a t i o n s i nc l u di ng com m e n t s , f ili n g s or q u al i f i cati o ns p u r su a nt t o S e c t i on 2 and S ecti o n 3 , i nc l u di n g , wi t h o ut li m i t ati o n, a l l r e g i s tr ati o n , li s t i ng a n d q u a li f i cati o ns f e e s, p r i nti n g a n d acc o u n t i n g f e e s , a n d f e e s a n d d i sb u r s e m e n t s o f c o u ns e l f o r t he C ompany sh al l be p ai d by t he C o m p a n y .

 

S e c ti on 6 . I NDE M N I FI C A T ION .

 

I n t he e v e n t a n y R e g i s t r a bl e S ec u r i t i es are i nc l u d ed i n t he R e g i s t r ati o n S t at e m e n t u n d e r t h i s A g r e e m e nt :

 

( a) T o t he f u ll est e x t e n t p e r m i tt ed by l a w , t he C ompan y , u n d e r t h i s A greem e nt, w ill , a n d h e r e b y d o es, i n d emn i f y , h ol d h a rm l ess a nd d e f e n d t he I n v est o r , t he d i r ect o r s, o ff i ce r s, p a rt n e r s, emp l o y e e s, c o u ns el , a g e nt s, r e p r e s e n t ati v es o f , a n d e a ch P erso n , i f a n y , w ho co n tr o l s , t he I n v est o r w it h i n t he m e a n i n g o f t he 1 9 33 A ct or t he S ec u r i t i es E x ch a n g e A ct o f

1 9 3 4 , as amend e d ( t he “ 1 9 34 A c t ” ) ( e a ch, an “ I n d emn i f i ed P erso n ” ) , a g a i n st a n y l oss e s, c l a i m s ,

d a m a g es, li a bili t i es, j u d gmen t s , f i n e s, p e n a l t i es, c h a r g es, cos t s, a t t orne y s’ f e e s, amou n t s p ai d in set t l e m e n t o r e x p e ns e s, j o i nt or se v eral ( co l l ecti v e l y , “ Cl a i m s ” ) , i nc u rr ed i n i n v esti g a t i n g , prepar i n g or d e f e n d i n g a ny acti o n, c l a i m , su i t , i n q ui r y , pr o ce e d i n g , i n v esti g ati o n or a p p e al t a k en fr o m t he f o r e g o i ng by or b e f ore a ny co u r t o r g o v ern m e n t a l , a d m i n i s tr a t i v e or other r e g u l at o r y a g e n c y , b o dy or t he SEC , w h e t h e r p e n di n g o r t hr e atene d , w h e t h e r or n o t a n i n d e m n i f i ed p a r t y i s or m ay be a p a rt y t h e r e t o ( “ I n d emn i f i ed D am a g e s ” ) , t o w h i ch a n y of t h e m m ay b e come su b j e c t i ns o f a r as such Cl a i m s ( or acti o ns or pro c e e d i n g s, w h e t h e r co m m e n c ed or t hre a t e n e d , i n r es p ect t h e r e o f ) arise o ut o f o r are b a sed u p o n: ( i ) a n y u nt r ue s t a t e m e n t or a ll e g e d u nt r ue s t at e m e n t o f a m at e r i al f a c t i n t he R e g i s t r ati o n S t ate m e n t or a n y p o s t - e ff ecti v e amendme n t t h e r e t o or i n a n y f ili ng m a d e i n co n n e c t i on w i t h t he q u ali f i c a t i on o f t h e o f f e r i ng u n d e r t h e sec u r i t i es o r o t h e r “ b l ue s k y ” l a w s of a n y j uris d i c t i on i n w h i ch t he I n v e s t or h a s r e q u ested i n w r i t i ng t h a t t he C o m p a n y r e g i s t e r or q u a li f y t he S h a r es ( “ Bl ue S k y F i li ng ”) , or t he o m i ss i on or a ll e g ed omiss i on t o s t ate a m ate r i al f a c t r e q u i r ed t o be s t ated t h e r e i n or n e cess a r y t o m a k e t he s t at e m e nt s t h e r e i n, i n l i g h t o f t he c i r c u m s t a n ces u n d e r w h i ch t he s t ate m e n t s t h e r e i n w ere m a d e, n o t m i s l e a d i n g , ( ii ) a n y u nt r ue s t a t eme n t o r a ll e g e d un tr ue s t at e m e n t o f a m at e r i al f a c t co n t a i n e d

ELED.REGISTRATION.RIGHTS.JULY.2014 6  
 

i n t he f i n a l prospe c t us f o r t he o ff e r o f t he R e g i s t r a bl e S ec u r i t i es ( as a m e n d e d or su p p l eme n t e d , i f t he C o m p a ny f i l es a ny amendment t h e r e o f or su p p l eme n t t h e r e t o wi t h t he SEC ) or t he omiss i on or a ll e g ed o m i ss i on t o s t a t e t h e r ein a n y m ate r i al f a ct n e cess a r y t o m a k e t he s t at e m e nt s m a d e t h e r e i n , i n li g ht o f t he c i r cum s t a nc e s u n d e r w h i ch t he s t ate m e n t s t h e r e i n w ere m a d e, not m i s l e a d i n g , or ( iii ) a n y v i o l ati o n or a l l eg ed v i o l ati o n b y t he C o m p a ny of t he 1 9 33 A c t , t he 1 9 34 A c t , a n y oth e r l aw, i nc l u d i n g , w i t h o ut l im i t ati o n , a n y s t ate sec u r i t i es l a w , or a n y r u l e or r e g u l ati o n t h e r e u n d er r elati n g t o t he o ff e r o r sa l e o f t he R e g i s t r a bl e S ec u r i t i es p u r su a n t t o t he R e g i s t r ati o n St at e m e n t ( t he m a t t ers i n t he f or e g oi ng c l a u ses ( i ) t hro u g h ( iii ) b ei n g , co ll ecti v e l y , “ Vi o l ati o ns ”) . S u b j e ct t o t he r e s t r i c t i o n s s e t f o r t h i n S ecti o n 6( c ) t he C o m p a ny sh al l r e i m b u r s e e a ch I n d emn i f i ed P erso n , pro m p t l y as such e x p e n ses a r e i n cur r ed a n d a r e d u e and pa y a b l e, f o r a n y r e a so n a bl e l e g al f e es or other r e a so n a bl e e x p e ns e s i nc u rr ed by t h e m i n co n n e c t i on wi t h i n v esti g ati n g o r d e f e n di ng a n y such Cl a i m . N ot w i t hstand i n g a n y t h i ng t o t he co n tr a r y co n t a i n e d h e r e i n, t he i n d emn i f i cat i on a g r e e m e n t co n t a i n e d i n t h i s S ecti o n 6(a ) : ( i ) sh al l n o t a p p l y t o a Cl a i m aris i ng o u t of or b as e d u p on a V i o l ati o n w h i ch i s d u e t o t he i nc l us i on i n t he R e g i s tr ati o n S t at e m e n t o f t he i n f o r m a t i on f urn i sh e d t o t he C o m p a ny by a n y I n d emn i f i e d P erson e x press l y f o r use i n co n nec t i on w i t h t he prepar a t i on o f t he R e g i s t r ati o n S t at e m e n t or a n y such amendme n t t h e r e o f o r su p p l eme n t t h ere t o ; ( ii ) sh al l n o t be av ail a bl e t o t he e x t e n t such Cl a i m i s b a sed on ( A ) a f a il ure o f t he I n v estor t o d eli v er or t o ca u se t o be d eli v ered t he prospe c t us m a d e a v a il a bl e b y t he C ompan y ; ( B ) t he I n d emn i f i ed P erson ’ s u se of an i nc o rr e ct pro s p e c t us d e sp i t e b ei ng pro m p t l y a d v i sed i n a d va n ce by t he C ompany i n w r i t i ng n o t t o use su c h i nc o rr ect p r os p e c t u s ; ( C ) t he m a n n e r o f sa l e of t he R e g i s t r a bl e S ec u r i t i es by t he I n v estor or o f t he I n v esto r ’ s f a il ure t o r e g i s t er as a d e a l er u n d e r a p p li ca bl e sec u r i t i es l aws; ( D ) a n y omiss i on o f t he I n v estor t o n o t i f y t he C ompany of a n y m at e r i al f a c t t h a t sh o uld be s t ated i n t he R eg i s t r ati o n S t a t eme n t or prospect u s r e l ati n g t o t h e I n v estor or t he m a n n er o f sa l e; a n d ( E ) a n y amounts p ai d i n set t l e m e n t o f a n y Cl a i m i f such s e tt l e m e n t i s e f f ected w i t h o ut t he p r i or w r i tt en co n se n t o f t h e C ompan y , w h i ch co n se n t sh al l n o t be u n r e a so n a b l y wi t h h e l d. S uch i n d emn i t y sh al l r ema i n i n f u l l f o r ce a n d e ff ect r e g a r d l ess o f a n y i n v esti g a t i on m a d e by or on b e h al f o f t he I n d e m ni f i ed P erson a n d sh al l sur v i ve t he r es al e o f t he R e g i s t r a bl e Sec u r i t i es by t he I n v estor p u r su a nt t o t he R e g i s t r ati o n S t at e m e nt ; a n d ( iii ) sh al l n o t be a v a il a bl e t o t he e x t e n t t he Cl a i m aris e s o u t o f t h e g r oss n e g l i g e n ce o r w ill f ul m i sco n d u c t o f t he I n d e m ni f i ed P e r so n .

 

( b) I n co n n e c t i on w i t h a n y R e g i s tr a t i on S t a t e m e n t i n w h i ch t he I n v estor i s p a rt i c i p a t i n g , t he I n v est o r a g r e e s t o se v era ll y a n d j o i ntly i n d emn i f y , h ol d h a rm l ess a n d d e f e n d , t o t he s a m e e x t e n t a n d i n t he same m a n n e r as i s set f o r t h i n S ecti o n 6( a ) , t he C ompan y , e a ch o f i t s d i r e c t or s , o f f i cer s , emp l o y e e s, co u nse l , a g e nts a n d r e p r es e nt a t i v es a n d e a ch P erson, i f a n y , w ho co n tr o l s t he C ompany wi t h i n t he m e a n i ng o f t he 1 9 33 A ct o r t h e 1 9 34 A ct ( e a c h , an “ I n d e m ni f i ed P ar t y ” ) , a g ai nst a n y Cl a i m or I n d e m ni f i ed D am a g es t o w h i ch a n y of t h e m m ay b e come su b j ec t , u n d e r t he 1 9 3 3 A c t , t he 1 9 34 A ct or o t h e r w i se, i ns o f ar as such Cl a i m o r I n d emn i f i ed D a m a g es a r i se o u t o f or a r e b a sed u p o n a n y Vi o l ati o n, i n e a ch case t o t h e e x t e nt , a n d on l y t o t he e x t e n t , t h at such Vi o l ati o n is due t o ( i ) t he i nc l us i on i n t he R e g i s t r ati o n S t at e m e n t o f t he w r i tt en i n f o r m at i on f u r n i sh e d t o t he C o m p a ny by t he I n v est o r e x press l y f o r use i n co n n e c t i on w i t h such R e g i s t r ati o n S t at e m e n t ; ( ii ) a f a il ure o f t he I n v estor t o de li v er or t o ca u se t o be d el i v ered t he pros p ectus m a d e a v a il a bl e b y t he C ompany or t he I n v esto r ’ s use o f a n i nc o rr ect pr o sp e c t us d e s p i t e b ei ng t i m e l y a d v i sed by t he C ompany i n w r i t i ng n o t t o use such i nc o rr ect p r os p e c t u s ; ( iii ) t he I n v esto r ’ s f a il ure t o r e g i s t e r as a d e a l er u n d e r a p p li ca bl e sec u r i t i es l a w s; ( i v ) t he I n v est o r ’ s gross n e g li g e nce or will f ul m i sco n d u c t ; or ( v ) a n y omiss i on o f t h e I n v estor t o n o t i f y t he C ompany o f a n y m at e r i al f act t h a t sh o u l d be s t a t ed i n t he R e g i s tr a t i on S t at e m e n t o r prospe c t us r e l ati n g t o t he I n v estor or t he m a n n e r o f sa l e; a n d , su b j e ct t o S ecti o n

6(c ) , t he I n v estor w i l l r e i m b u r se a n y l e g al or other e x p e ns e s r e a so n a bl y i nc u rr ed by t h e m i n co n n e c t i on w i t h i n v est ig a t i ng o r d e f e n d i ng a n y such Cl a i m ; pro v i d e d , h o w e v er, t h a t t he

i n d emn i t y a g r e e m e n t c o n t a i n e d i n t h i s S ecti o n 6(b) a n d t he a gre e m e n t w i t h r es p e c t t o

ELED.REGISTRATION.RIGHTS.JULY.2014 7  
 

co n tr i b u t i on co n t a i n e d i n S ecti o n 7 sh al l n o t a p p l y t o amounts p ai d i n set tl ement o f a n y Cl a i m i f such s e tt l eme n t i s e ff ec t ed w i t h o ut t he pri o r w r i t t en co n se n t o f t he I n v es t or, w h i ch co n se n t sh al l n o t be u n r e a so n a bl y w i t h h e l d. S uch i n d e m n i t y s h al l r ema i n i n f u l l f orce a nd e f f e ct r e g a r d l ess o f a n y i n v esti g ati o n m a d e b y or on b e h a l f o f such I n d e m n i f i ed P a r t y a n d sh a l l sur v i v e t he r es al e o f t he R e g i s t r a bl e Sec u r i t i es by t he I n v estor p u r su a nt t o t he R e g i s t r ati o n S t a t eme n t .

 

( c) P r om p t l y af t er r ec ei pt by an I n d e m n i f i ed P e r son or I n d e m n i f i ed P a rt y u n d er t h i s S ecti o n 6 of n o t i ce o f t he co m m e n ceme n t o f a n y acti o n or proc e e di ng ( i nc l u di ng a n y g o v ern m e n t al acti o n or procee di n g ) i n v o l v i ng a Cl a i m , such I n d e m n i f i ed P erson or I n d e m n i f i ed P ar t y sh all , i f a Cl a i m i n r es p ect t h e r e o f i s t o be m a d e a g a i nst a n y i n d emn i f y i ng p a rt y u n d er t h i s S ecti o n 6 , d el i v er t o t he i n d emn i f y i ng p a r t y a w r i tt en n o t i ce o f t he co m m e nc e m e n t t h ere o f , a n d t he i n d emn i f y i ng p a rt y s h al l h a v e t he r i g h t t o p a r t i c i p a t e i n, a n d , t o t h e e x t e n t t he i n d e m n i f y i ng p a rt y so d e s i r e s , j o i ntly wi t h a n y other i n d emn i f y i ng p a rt y s i m il arly n o t i ce d , t o a s sume c o nt r ol o f t he d e f e n se t h e r e o f w i t h co u ns e l m utua ll y sat i s f act o r y t o t he i n d emn i f y i ng p a rt y a n d t h e I n d emn i f i ed P ers o n or t he I n d emn i f i ed P a r t y , as t he case m ay b e ; pro v i d e d, h o w e v er, t h a t an I n d emn i f i ed P erson o r I n d e m n i f i ed P ar t y , as t he case m ay b e , sh al l h a v e t he r i g h t t o r e t a i n i t s o w n co u ns e l wi t h t he f e e s a n d e x p e ns e s t o be p ai d by t he i n d emn i f y i ng p a r t y , if , i n t he r e a so n a bl e o pi n i on of c o u ns e l r eta i n e d by t he I n d emn i f i ed P erson or I n d emn i f i ed P ar t y , t he r e p r es e n t ati o n by co u n s el of t he I n d e m n i f i ed P e r son or I n d emn i f i ed P ar t y a n d t he i n d e m n i f y i ng p a rt y w o ul d be i n a p p r o p r i ate d u e t o a c t u a l or p o t e n t i al d i f f e r i ng i nte r e s t s b e t w e e n such I n d emn i f i ed P erson or I n d emn i f i ed P ar t y a n d a ny other p a rt y r e p r es e n t ed by such co u ns e l i n such procee di n g . T he i n d emn i f y i ng p a rt y sh al l p a y f or o nl y o n e ( 1) se p ara t e l e g al co u ns e l f o r t he I n d e m n i f i ed P ersons or t he I n d emn i f i ed P a rt i es, as a p p li ca bl e, a n d s uch co u ns e l sh al l be se l ected by t he I n v esto r , i f t he I n v est o r i s e n t i t l ed t o i n d e m n i f i cati o n he r e u n d e r , o r t he C o m p a n y , i f t he C ompany i s e n t i t l ed t o i n d emn i f i cati o n h e r e u n d e r , as a p p li ca bl e. T h e I n d emn i f i ed P a r t y or I n d emn i f i ed P erson sh a l l co o p e r ate f u ll y w i t h t he i n d emn i f y i ng p a r t y i n co n n e c t i on w i t h a n y n e g o t i ati o n or d e f e n se o f a n y such acti o n or Cl a i m by t he i n d emn i f y i ng p ar t y a n d sh al l f urn i sh t o t he i n d emn i f y i ng p a r t y a l l i n f o r m ati o n r e a so n a bl y a v a i l a bl e t o t he I n d em n i f i ed P ar t y or I n d emn i f i ed P erson w h i ch r e l ates t o such a c t i on or Cl a i m . T he i n d emn i f y i ng p a rt y sh al l k e e p t he I n d e m n i f i ed P a r t y or I n d emn i f i ed P erson f u ll y a p pris e d at a l l t i m es a s t o t he s t atus o f t he d e f e n se or a ny set t l e m e n t n e g oti a t i o n s w i t h r e sp e ct t h e r e t o. N o i n d e m n i f y i ng p a r t y sh al l be li a bl e f o r a n y set t l ement o f a n y acti o n, c l a i m or p r oc e e di ng a ff e c t ed w i t h o ut i t s w r i tt en co n se nt ; pro v i d e d, h o w e v er, t h a t t he i n d e m n i f y i ng p a r t y sh al l n o t u n r e a so n a bl y w i t h h o l d, d el ay or co n d i t i on i t s co n se nt . N o i n d e m n i f y i ng p a r t y sh al l , w i t h o ut t he co n se n t o f t he I n d e m n i f i ed P a r t y or I n d e m n i f i ed P erson, c o n se n t t o e n tr y o f a n y j u d gment o r e n t e r i nto a ny set t l ement o r oth e r comp r o m i se w h i ch d o es n o t i nc l u d e as an u n co n d i t i o n al t erm t h e r e o f t he g i v i ng by t he c l a i m a n t or p l a i nt i f f t o such I n d e m n i f i ed P ar t y or I n d e m n i f i ed P erson o f a r e l e a se f r o m a l l li a bi l i t y i n r es p ect t o s u ch Cl a i m . F oll o w i ng i n d emn i f i c a t i on as pro v i d e d f or h e r e u n d er, t he i n d emn i f y i n g p a rt y sh al l be su b r o g a t ed t o a l l r i g h t s o f t he I n d emn i f i ed P a r t y or I n d emn i f i ed P erson w i t h r es p ect t o a l l t h i r d p a rt i e s, f i r m s or c o r p o r a t i o n s r e l ati n g t o t he m a tt e r f or w h i ch i n d emn i f i cati o n h a s b e en m a d e. T he f a il ure t o d eli v er w r i tt en n o t i ce t o t he i n d emn i f y i ng p a r t y w i t h i n a r e a so n a bl e t i m e o f t he c om m e n c e m e n t o f a n y s uch acti o n sh al l n o t r e li e v e such i n d emn i f y i ng p a rt y o f a n y li a bili t y t o t h e I n d e m n i f i ed P erson or I n d emn i f i ed P a rt y u n d e r t h i s S ecti o n 6 , e x cept t o t he e x t e n t t h a t t he i n d emn i f y i ng p a rt y i s p r e j u d i ced i n its a bili t y t o d e f e n d such a c t i o n .

 

( d) T he i n d e m n i t y a g r e e m e nts co n t a i n e d h e r e i n sh a l l be i n a d d i t i on t o ( i ) a n y ca u se o f acti o n or s i m il ar r i g h t o f t he I n d e m n i f i ed P a r t y or I n d e m n i f i ed P erson a g a i nst t he i n d emn i f y i ng p a rt y or oth e r s, a n d ( ii ) a n y li a b i li t i es t he i n d em n i f y i ng p a rt y m ay be su b j ect t o p u r su a nt t o t he l a w .

ELED.REGISTRATION.RIGHTS.JULY.2014 8  
 

S e c ti on 7 . C O N T R I B U T ION .

 

T o t he e x t e n t a n y i n d emn i f i c a t i on by an i n d emn i f y i ng p a rt y i s proh i b i t ed or li m i t ed by l a w , t he i n d emn i f y i ng p a rt y a g r e e s t o m a k e t he m a x i m um co n tr i b u t i on w i t h r e sp e ct t o a n y amounts f or w h i ch i t w o u l d othe r wi se be li a bl e u n d e r S e c t i on 6 t o t he f u ll est e x t e n t p e r m i tt ed by l a w ; pro v i d e d, h o w e v er, t h at : ( i ) no co n tr i b u t i on sh al l b e m a d e und e r c i r cum s t a nc e s w h e r e t he m a k e r w o u l d n o t h a v e b e en li a b l e f or i n d emn i f i c a t i on u n d e r t he f a ul t s t a n d a r ds set f o r t h i n S ecti o n 6 ; ( ii ) no se ll er of R e g i s tr a b l e S ec u r i t i es g u il t y of f r a u d u l e n t m i s r e p r e s e n t a t i on ( w i t h i n t he m e a n i n g o f S ecti o n 1 1 ( f ) o f t he 1 9 3 3 A c t ) sh al l be e n t i t l ed t o co n tr i b u t i on fr o m a n y se l l er of R e g i s t r ab l e S ec u r i t i es w ho w as n o t g u il t y o f fr a u d ul e n t m i s r e present a t i o n ; a n d ( iii ) c o nt r i b u t i on by a n y se ll er o f R e g i s tr a bl e S ec u r i t i es sh al l be li m i t ed i n amo u nt t o t he n e t a m o u nt o f procee d s r ec ei v ed by such se ll er fr o m t he sa l e o f such R e g i s t r a bl e Sec u r i t i es.

 

S e c ti on 8 . REP O R T S UND E R T H E 1 9 34 A C T .

 

W i t h a v i ew t o m a k i ng a v a i l a bl e t o t he I n v estor t he b e n e f i t s o f R u l e 1 4 4 pro m u l g a t ed u n d e r t he 1 9 33 A ct o r a n y other s i m il ar r u l e o r r e g ul ati o n o f t he SE C t h a t m ay at a n y t i m e pe rm i t t he I n v est o r t o se l l se c uriti e s o f t he C om p a n y t o t he p u b li c w i t h o ut r e g i s t r ati o n ( “ R u l e 1 4 4 ” ) , pro v i d e d t h a t t he I n v es t or h ol ds a n y R e g i s t r a bl e S ec u r i t i es w h i ch are e li g i b l e f o r r es al e u n d e r R u l e 1 4 4 a n d such i n f or m a t i on i s n e cess a r y i n order f o r t he I n v estor t o se l l such S ec u r i t i es p u r su a nt t o R u l e 144, t h e C o m p a ny a g r e e s t o:

 

( a) m a k e a n d k e ep p u b li c i nfo r m ati o n a v a il a bl e, as t h o se t e r m s a r e u n d e r s t o od a n d d e f i n e d in R u l e 14 4 ;

 

( b) f il e w i t h t he SE C i n a t i m e l y m a n n e r a l l r e p o r t s a n d other d o cume n t s r e q u i r ed o f t he C ompany u n d e r t he 1 9 33 A ct a n d t he 1 9 34 A ct so l o n g as t he C o m p a n y r ema i ns su b j e c t t o such r e q u i r eme n t s ( i t b e i ng u n d e r s t o o d t h a t n o t h i ng h e r e i n sh al l li m i t t he C ompan y ’ s o b l i g ati o ns u n d e r S ecti o n 5 ( c) o f t he I n v est m e n t A g r e e m e nt) a n d t he f ili ng o f s u ch r e p o r t s a n d o t h e r d o cumen t s i s r e q u i r ed f o r t he a p p li ca bl e p r o v i s i o n s o f R u l e 144; a n d

 

( c) f urn i sh t o t he I n v esto r , pro m p t l y u p on r e q u e s t , ( i ) a w r i tt en s t at e m e n t by t he

C ompa n y t h a t i t h a s co m p li ed w i t h t he r e p or t i ng r e q u i r e m e nt s o f R u l e 144, t he 1 9 33 A ct a n d t he

1 9 34 A ct a p p li ca bl e t o t he C ompan y , ( ii ) a co p y o f t he m o st r e ce n t a n n u al or q u a rt e r l y r e p ort o f t he C ompany a n d such other r e p o rt s a n d d o cumen t s so f il ed by t he C omp a n y , a n d ( iii ) such

other i n f o r m ati o n as m a y be r e a so n a bl y r e q u e s t ed t o p e rm i t t he I n v estor t o se l l such sec u r i t i e s p u r su a nt t o R u l e 144 w i t h o ut r e g i s tr a t i o n .

 

S e c ti on 9 . N O A SS IG N M EN T O F R E GI S T R A TI O N R IG H T S .

 

T h i s A g r e e m e n t a n d t h e r i g h t s , a g r e e m e n t s o r o bli g a t i o n s h ereun d e r m ay n o t be ass i g n e d , by o p era t i on of l a w , m e r g er o r oth e r w i s e, a n d w i t h o ut t he pri o r w r i tt en co n se n t o f t h e other p a rt y h e r et o , a n d a ny p u r p o rt ed ass i g nme n t by a p a rt y w i t h o ut pri o r w r i tt en co n se n t o f t he other p a rt y w i l l be n ul l a nd v o i d a n d n o t b i n di ng on such oth e r p a rt y . S u b j ect t o t he p r ec e d i n g se n t e n ce, a l l o f t he t e rm s, a g r e e m e n t s , co v e n a n t s, r e p r es e n t ati o ns, w ar r a n t i es a n d co n d i t i o n s o f t h i s A g r e e m e n t are b i n di ng u p o n , a n d i n u r e t o t he b e n e f i t o f a n d a r e e n f o r ce a b l e b y , t he p a rt i es and t h e i r r es p e c t i v e successors a n d a s s i g n s.

ELED.REGISTRATION.RIGHTS.JULY.2014 9  
 

S e c ti on 1 0 . A M END M E N T O F R EGIS T R AT IO N R IG H T S .

 

T he pro v i s i o n s of t h i s A g r e e m e n t m ay be ame n d e d o nl y w i t h t he w r i tt en co n se n t o f t he

C ompany a n d t he I n v es t or.

 

S e c ti on 1 1 . MI SCE L L A NE O U S .

 

( a) A ny n o t i ces or other com m u ni c a t i o n s r e q u i r ed o r p e rm i t t ed t o be g i v en u n d er t he t e r m s o f t h i s A gre e m e n t m ust be i n w r i t i ng a n d wil l be d e emed t o h a v e b e e n d el i v ered ( i ) u p on r ec ei pt, w h e n d el i v ered p e r so n a ll y ; ( ii ) u p on r ec ei pt, w h e n se n t by f acs i m il e or ema i l w i t h t he s i g n e d d o c u m e n t a tt a c h e d i n PD F f o r m at ( pro v i d e d a co n f i r m ati o n of tr a n s m i ss i on i s m ec h a ni ca ll y or e l ect r o ni ca l l y g e n era t ed a n d k e p t on f il e by t he se n d i ng p a rt y ) ; o r ( iii ) o n e ( 1 ) d a y a f t er d e p o s i t w i t h a n a t i o n a ll y r ec o g n i z ed ov e r n i g h t d eli v ery ser v i ce, i n e a ch case proper l y a d dressed t o t he p a rt y t o r ec ei v e t he sam e . T h e a d dresses a n d f acs i m il e n u m b e r s f o r su c h com m u ni c a t i o n s sh al l b e :

 

I f t o t he C ompan y :

 

 

ENER GI E H O L D I N G S , INC .

4 8 85 W a r d R o a d , S u i t e 3 0 0

W he at Ri d g e , C o l orado 8 0 0 3 3

T e l e p h o n e : ( 7 2 0 ) 9 6 3 - 8 0 55

 

I f t o t he I n v est o r :

 

D utchess O p p o rt u ni t y F u n d , I I , LP

50 C o m m o n w e al t h A v e, S u i t e 2

B oston, M A 0 2 1 1 6

T e l e p h o n e : ( 6 1 7 ) 3 0 1 - 4 7 00

 

 

E ach p a rt y sh al l prov i d e f i v e ( 5) b u s i n e ss d a y s pri o r n o t i ce t o t he ot h er p a rt y o f a n y ch a n g e i n addr e ss, p h o n e nu m b e r , f a c s i m il e nu m b e r o r e - m a i l a d dres s .

 

( b) F ail ure o f a n y p a r t y t o e x ercise a n y r i g ht or r e m e d y u n d e r t h i s A g r e e m e n t o r othe r w i se, or d el ay by a p a rt y i n e x ercis i ng such r i g h t or r e m e d y , sh al l n o t o p er a t e as a w a i v er t h e r e o f .

 

( c) T h i s A g r e e m e n t a n d t he I n v est m e n t A g r e e m e n t co n s t i t u t e t he e n t i r e a g r e e m e n t amo n g t he p a r t i es h e r e t o w i t h r es p ect t o t he s u b j ect m a tt e r h e r e o f a n d t h e r e o f . T h e r e a r e no r es t r i c t i o n s, pr o m i ses, w ar r a n t i es or u n d e rt a k i n g s , o t h e r t h a n t h o se set f o r t h o r r e f e r r ed t o h e r e i n and t h e r e i n.

 

( d) T h i s A g r e e m e n t a n d t he I n v est m e n t A g r e e m e n t su p ersede a l l pri o r a gr e emen t s a n d u n d e r s t a n d i n g s a m o n g t he p a rt i es h e r eto wi t h r es p ect t o t he su b j ect m a tt e r h e r e o f a n d t h e r e o f .

 

( e) T he h e a di n g s i n t h i s A g r e e m e n t are f or co n v e ni e n ce o f r e f e r e n ce o nl y a n d sh al l not li m i t o r o t h e r w i se a ff ect t he m e a n i n g h e r e o f . W h e n e v er r e q u i r ed b y t he co n t e x t o f t h i s A g r e e m e n t , t he s i n g u l ar sh al l i nc l u d e t he p l ural a n d m asc uli ne sh al l i nc l u d e t he f emi ni n e . T his

ELED.REGISTRATION.RIGHTS.JULY.2014 10  
 

A g r e e m e n t sh al l n o t be co n s tr u e d as i f i t h a d b e en prepared by o n e o f t h e p a rt i e s , b u t r at h er a s i f a l l t he p a r t i es had pre p ared t he s a m e.

 

(f ) T h i s A g r e e m e n t m ay be e x ec u t ed i n t w o or m o r e i d e ntic a l co u nte r p a r t s, e a ch o f w h i ch sha l l be d e emed an ori g i n a l b u t a l l o f w h i ch sha l l co n s t i t ute o n e a n d t he same a g r e e m e nt . T h i s A gree m e n t , o n ce e x ec u t ed by a p a rt y , m ay be d el i v ered t o t he other p a rt y h e r e t o by f acs i m il e t r a n s m i ss i on or by e -m a i l d e l i v ery of a P D F f o rm a t o f a copy of t h i s A g r e e m e n t b e ar in g t he s i g n a t u r e o f t he p a r t y so de li v eri n g t h i s A gre e m e nt .

 

( g) E ach p a rt y sh al l do a n d p e r f o r m , o r c a u se t o b e d o ne a n d p e r f o rm e d , a l l such f u r t h e r a c t s a n d t h i n g s , a n d sh al l e x ec u t e a n d d el i v er a l l such other a g r e e m e n t s , c e rt i f i c a t e s , i nst r ume n t s a n d d o c u m e nts, as t he o t h e r p a rt y m ay r e a so n a bl y r e q u e s t i n order t o ca r r y o u t t he i ntent a n d a ccomp li sh t he p u r p o ses o f t h i s A greeme n t a n d t he co n su m m ati o n o f t he tr a n sa c t i o n s co n t e m p l at e d he r e b y .

 

( h) I n case a n y pro v i s i on o f t h i s A g r e e m e n t i s h e l d by a co u r t o f c o m p e t e n t j uris di c t i on t o be e x cess i v e i n sco p e or oth e r w i se i n v a l i d or u n e n f o r ce a b l e, s u ch p r o v i s i on sh al l be a d j u s t ed r ath e r t h a n v o i d e d, i f p o ss i b l e, so t h a t i t i s e n f or c e a b l e t o t he m a x i m um e x t e n t p o ss i b l e, a n d t he v a li d i t y a n d e n f orceab i li t y of t he r ema i n i ng p r o v i s i o n s of t h i s A greeme n t w i l l n o t i n any w ay be a f f e c t e d or i m p ai r ed t h e r e b y .

 

S e c ti on 1 2 . GO VERN I N G L A W; D I S PU T E S SUB MI T T E D T O A RB I T R A T IO N .

 

Al l d i sp u t es aris i ng u n d e r t h i s a g r e e m e n t sh a l l be g o v erned b y a n d i nte r pre t ed i n acc o r d a nce w i t h t he l a w s o f t he C o m m o n w e al t h o f M ass a ch u set t s, w i t h o ut r e g a r d t o p r i nc i p l es o f co n f li ct o f l a w s. T he p a r t i es t o t h i s a gre e m e n t w i l l su b m i t a l l d i sp u t es aris i n g u n d e r t h i s a g r e e m e n t t o arb i tr a t i on i n B oston, M ass a ch u set t s b e f o r e a s i n g l e a r b i t r ator o f t he A m eric a n A r b i tr a t i on A ssoc i ati o n ( “ AA A ”) . T he a r b i tr a t or s h a l l be se l ected by a p p li cati o n o f t he r u l es o f t he AAA , or by m utual a g r e ement o f t he p a r t i es, e x ce p t t h a t such arb it r at o r sh al l be an at t orney a d m i tt ed t o p r a c t i ce l aw i n t he C o m m o n w e al t h o f M ass a ch u set t s . N o p ar t y t o t h i s a g r e e m e n t wil l ch all e n g e t he j uris di c t i on or v e n ue pro v i s i o n s as pro v i d e d i n t h i s secti o n. N oth i n g co n t a i n e d h e r e i n sha l l pre v e n t t he p a rt y fr om o b t a i n i n g an i n j u n c t i o n .

 

* . * . *

ELED.REGISTRATION.RIGHTS.JULY.2014 11  
 

S IG N A T UR E PA G E O F RE GI S T RA T I O N RI G H TS A G REE M EN T

 

Y o u r s i g n a t ure on t h i s Si g n a t u r e P a g e e v i d e nc e s y o u r a g r e e m e n t t o b e b o u n d by t he t e r m s a n d co n d i t i o n s o f t he I n v est m e n t A greem e nt a n d t he R e g i s tr a t i on Ri g hts A greeme n t as o f t he d a t e f i r s t w r i tt en a b o v e.

 

T he u n d e r s i g n e d s i g n a t ory h e r e b y cer t i f i es t h a t he h a s r e a d a n d u n d e r s t a n ds t he R e g i s t r ati o n Ri g h t s A g r e e m e nt , a n d t he r e p r e se n t ati o ns m a d e by t h e u n d e r s i g n e d i n t h i s R e g i s t r ati o n R i g h t s A g r e ement are t r ue a n d acc u r at e , a n d a g r e e s t o be b o u nd by i t s t e r m s .

 

DU T C HES S O PP O R T U N I T Y F U ND , I I , L . P .

 

 

 

  By:   
  Douglas H. Leighton  
  Managing Member of:  
  Dutchess Capital Management, II, LLC General Partner to:  
  Dutchess Opportunity Fund, II, LP  

 

 

 

  ENERGIE HOLDINGS, INC.  
     
     
  By:  
  Harold Hansen  
  Cheif Executive Officer  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Si g n a t ure P a g e t o Re g i s tr a t i on R i g h ts A gre e m e n t

ELED.REGISTRATION.RIGHTS.JULY.2014 12  
 

 

FOR IMMEDIATE RELEASE

 

Énergie Holdings, Inc. Announces a Material Contract with Dutchess Opportunity Fund II, LP to purchase up to $5,000,000 of common shares.

 

DENVER – July 22, 2014 (Marketwired) -- Énergie Holdings, Inc. (“Energie” or the “Company”) (OTCQB: ELED) is pleased to announce its Material Contract with Dutchess Opportunity Fund II, LP to purchase up to $5,000,000 of common shares over 36 months through an equity line of credit contract.

The funds will be used to establish and execute the LED Lighting Fixture company acquisition and growth plan of Energie Holdings Inc.

Douglas H. Leighton, Managing Partner of Dutchess Opportunity Fund stated: “Dutchess is always looking for investment opportunities in high grow industry segments. LED Lighting appears to be one of those segments. We are happy to be engaged with Energie Holdings as they pursue their business plan.”

Harold (Hal) Hansen, the CEO of Energie Holdings stated: “We are proud that an investment partner like Dutchess Opportunity Fund sees the potential of the LED Lighting industry. And, especially in the acquisition and growth strategy we will aggressively pursue.”

ABOUT DUTCHESS OPPORTUNITY FUND II: Dutchess Opportunity Fund II invests in special situations assisting growth-stage and mature companies alike. Since 1996, Dutchess has managed over $2 billion in transactional value for companies which span a wide array of sectors. With offices in Boston, New York, London, Beijing and Sao Paulo, Dutchess invests in global investment opportunities. For further information about Dutchess, please visit www.dutchesscapital.com .

ABOUT ÉNERGIE HOLDINGS, INC .: Énergie Holdings, Inc. is focused on acquiring and growing companies that provide specialized LED lighting solutions to the architecture and interior design markets.  The Company is headquartered in Wheat Ridge, Colorado.

Its first wholly owned subsidiary, Énergie LLC, with facilities in Zeeland, Michigan is currently targeting the multi-billion dollar architectural, specification-grade lighting fixture segment of the North American lighting fixture market with innovative, differentiated LED lighting products.

Énergie Holdings is continuing to identify and acquire other companies that have proven expertise in LED technology.  Targets include:

- Lighting fixture manufacturers that complement the Énergie LLC product offering,

- LED component manufacturers who own solid intellectual property, and

- Internationally recognized consulting firms with experts in the current and future direction of LED technology.

 

For more information about Énergie Holdings visit http://www.energieholdings.com

For Information email IR@energieholdings.com

Or contact Investor Relations at 888-490-0708

 
 

 

SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS" MADE IN RELIANCE UPON THE SAFE HARBOR PROVISIONS OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, CONCERNING EXPECTATIONS FOR SALES, STRATEGIC ACQUISITIONS, GROSS MARGINS, EXPENSES, COST SAVINGS, STRATEGIC DIRECTION AND EARNINGS.  ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITORS, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN CONSTRUCTION SPENDING; SEASONALITY; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POSSIBLE ADVERSE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ANY GROWTH STRATEGIES; RISKS ASSOCIATED WITH THE COMPANY'S ABILITY TO IMPLEMENT AND REALIZE THE ANTICIPATED BENEFITS OF THE  COMPANY'S STRATEGIC INITIATIVES, AS WELL AS THE OTHER RISK FACTORS SET FORTH IN THE COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.