0001193125-16-511774.txt : 20160321 0001193125-16-511774.hdr.sgml : 20160321 20160321145631 ACCESSION NUMBER: 0001193125-16-511774 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20160321 DATE AS OF CHANGE: 20160321 GROUP MEMBERS: DOUGLAS FAMILY TRUST (1) GROUP MEMBERS: JAMES DOUGLAS & JEAN DOUGLAS IRREVOCABLE DESCENDANTS TRUST GROUP MEMBERS: JAMES E. DOUGLAS, III GROUP MEMBERS: K&M DOUGLAS TRUST (1) GROUP MEMBERS: MICHELLE DOUGLAS SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Fuel Systems Solutions, Inc. CENTRAL INDEX KEY: 0001340786 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 203960974 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-82552 FILM NUMBER: 161518545 BUSINESS ADDRESS: STREET 1: 780 THIRD AVENUE STREET 2: 25TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 646-502-7170 MAIL ADDRESS: STREET 1: 780 THIRD AVENUE STREET 2: 25TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: DOUGLAS KEVIN CENTRAL INDEX KEY: 0001132859 FILING VALUES: FORM TYPE: SC 13D/A MAIL ADDRESS: STREET 1: 125 E. SIR FRANCIS DRAKE BLVD. STREET 2: SUITE 400 CITY: LARKSPUR STATE: CA ZIP: 94939 SC 13D/A 1 d166675dsc13da.htm SCHEDULE 13D (AMENDMENT NO. 1 ) SCHEDULE 13D (Amendment No. 1 )

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 1 )

 

 

Fuel Systems Solutions, Inc.

(Name of Issuer)

Common Stock

(Title of Class of Securities)

35952W103

(CUSIP Number)

Ryan J. York

Davis Wright Tremaine LLP

1201 Third Avenue, Suite 2200

Seattle, WA 98101

(206) 622-3150

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

March 17, 2016

(Date of Event which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f), or 240.13d-1(g), check the following box.  x

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.

 

 

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 


CUSIP No. 35952W103  

 

  1   

NAMES OF REPORTING PERSONS

 

Kevin Douglas

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  x

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

PF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

¨

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7           

SOLE VOTING POWER:

 

0

     8   

SHARED VOTING POWER:

 

1,958,429 (1)

     9   

SOLE DISPOSITIVE POWER:

 

0

   10   

SHARED DISPOSITIVE POWER:

 

2,671,684 (1)(2)

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

2,671,684 (1)(2)

12  

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

14.8% (4)

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

(1) Kevin Douglas and his wife, Michelle Douglas, hold 1,056,671 shares jointly as the beneficiaries and co-trustees of the K&M Douglas Trust. In addition, Kevin Douglas and Michelle Douglas are co-trustees of the James Douglas and Jean Douglas Irrevocable Descendants’ Trust, which holds 901,758 shares.
(2) Kevin Douglas has dispositive power with respect to 264,167 shares held by James E. Douglas, III and 449,088 shares held by the Douglas Family Trust.
(3) Based on 18,094,043 shares of the Issuer’s common stock outstanding as of March 7, 2016 as reported on the Issuer’s Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2016.


CUSIP No. 35952W103  

 

  1   

NAMES OF REPORTING PERSONS

 

Michelle Douglas

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  x

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

PF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

¨

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7           

SOLE VOTING POWER:

 

0

     8   

SHARED VOTING POWER:

 

1,958,429 (1)

     9   

SOLE DISPOSITIVE POWER:

 

0

   10   

SHARED DISPOSITIVE POWER:

 

1,958,429 (1)

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,958,429 (1)

12  

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

10.8% (2)

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

(1) Kevin Douglas and his wife, Michelle Douglas, hold 1,056,671 shares jointly as the beneficiaries and co-trustees of the K&M Douglas Trust. In addition, Kevin Douglas and Michelle Douglas are co-trustees of the James Douglas and Jean Douglas Irrevocable Descendants’ Trust, which holds 901,758 shares.
(2) Based on 18,094,043 shares of the Issuer’s common stock outstanding as of March 7, 2016 as reported on the Issuer’s Form 10-K filed with the SEC on March 14, 2016.


CUSIP No. 35952W103  

 

  1   

NAMES OF REPORTING PERSONS

 

James E. Douglas, III

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  x

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

PF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

¨

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7           

SOLE VOTING POWER:

 

264,167

     8   

SHARED VOTING POWER:

 

0

     9   

SOLE DISPOSITIVE POWER:

 

0

   10   

SHARED DISPOSITIVE POWER:

 

264,167 (1)

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

264,167 (1)

12  

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

1.5% (2)

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

(1) Kevin Douglas shares dispositive power with respect to 264,167 shares held by James E. Douglas, III.
(2) Based on 18,094,043 shares of the Issuer’s common stock outstanding as of March 7, 2016 as reported on the Issuer’s Form 10-K filed with the SEC on March 14, 2016.


CUSIP No. 35952W103  

 

  1   

NAMES OF REPORTING PERSONS

 

K&M Douglas Trust (1)

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  x

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

PF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

California

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7           

SOLE VOTING POWER:

 

0

     8   

SHARED VOTING POWER:

 

1,056,671 (2)

     9   

SOLE DISPOSITIVE POWER:

 

0

   10   

SHARED DISPOSITIVE POWER:

 

1,056,671 (2)

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,056,671 (2)

12  

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

5.8% (3)

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

(1) Kevin Douglas and Michelle Douglas, husband and wife, are beneficiaries and co-trustees.
(2) Kevin Douglas and his wife, Michelle Douglas, hold 1,056,671 shares jointly as the beneficiaries of the K&M Douglas Trust.
(3) Based on 18,094,043 shares of the Issuer’s common stock outstanding as of March 7, 2016 as reported on the Issuer’s Form 10-K filed with the SEC on March 14, 2016.


CUSIP No. 35952W103  

 

  1   

NAMES OF REPORTING PERSONS

 

James Douglas and Jean Douglas Irrevocable Descendants’ Trust (1)

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  x

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

PF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

California

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7           

SOLE VOTING POWER:

 

901,758

     8   

SHARED VOTING POWER:

 

0

     9   

SOLE DISPOSITIVE POWER:

 

901,758

   10   

SHARED DISPOSITIVE POWER:

 

0

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

901,758

12  

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

5.0% (2)

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

(1) Kevin Douglas and Michelle Douglas, husband and wife, are co-trustees.
(2) Based on 18,094,043 shares of the Issuer’s common stock outstanding as of March 7, 2016 as reported on the Issuer’s Form 10-K filed with the SEC on March 14, 2016.


CUSIP No. 35952W103  

 

  1   

NAMES OF REPORTING PERSONS

 

Douglas Family Trust (1)

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  x

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

PF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

California

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7           

SOLE VOTING POWER:

 

449,088

     8   

SHARED VOTING POWER:

 

0

     9   

SOLE DISPOSITIVE POWER:

 

0

   10   

SHARED DISPOSITIVE POWER:

 

449,088 (2)

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

449,088 (2)

12  

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

2.5% (3)

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

(1) James E. Douglas Jr. and Jean A Douglas, husband and wife, are co-trustees.
(2) Kevin Douglas also has dispositive power with respect to 449,088 shares held by the Douglas Family Trust.
(3) Based on 18,094,043 shares of the Issuer’s common stock outstanding as of March 7, 2016 as reported on the Issuer’s Form 10-K filed with the SEC on March 14, 2016.


Schedule 13D

This Amendment No. 1 (“Amendment”) amends and supplements the Schedule 13D filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 2, 2015 (the “Schedule 13D”). Except as set forth in this Amendment, the Schedule 13D remains unchanged. Unless otherwise indicated, all capitalized terms used herein but not defined herein shall have the same meaning as set forth in the Schedule 13D.

 

ITEM 4. PURPOSE OF TRANSACTION

The Filers hereby add the following disclosure to Item 4:

On March 17, 2016, the Filers entered into a letter agreement (the “Letter Agreement”) with the Issuer and the Parent. Pursuant to the terms of the Letter Agreement, the Filers acknowledged that the terms of the Voting Agreement, previously entered into with the Parent and the Issuer, remain in effect. The Letter Agreement also modified the terms of the Voting Agreement to provide that, in addition to the previous provisions relating to termination of the Voting Agreement, the Voting Agreement may also be terminated by the Filers after delivery of written notice of termination in the event that the “effective time” of the Merger has not occurred on or before April 30, 2016.

The foregoing summary of the principal terms of the Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the full copy of the Letter Agreement, filed herewith as Exhibit 7.4 and incorporated by reference herein.

No additional consideration was paid by or to the Parent, the Issuer, or the Filers in connection with the Letter Agreement, and therefore no funds were used in connection with the transactions requiring the filing of this statement.

The Filers do not have any present plan or proposal that would relate to or result in any of the matters set forth in subparagraphs (a) – (j) of Item 4 of Schedule 13D, except as set forth herein or such as would occur upon completion of any of the actions discussed herein.

 

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER

(a) and (b) The beneficial ownership of the Common Stock by each Filer at the date hereof is reflected on that Filer’s cover page.

(c) There were no transactions effected by the Filers in the Common Stock within the past sixty (60) days.

(d) and (e) Not applicable.

ITEM 6. CONTRACTS, AGREEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.

Other than as described in Items 4 and 5 of this statement, and the agreements attached as exhibits hereto, to the knowledge of the Filers, none of the Filers is party to any other contracts, arrangements, understandings or relationships with respect to any securities of the Issuer,


including but not limited to the transfer or voting of any of the securities, finder’s fees, joint ventures, loan or option agreements, puts or calls, guarantees of profits, division of profits or loss, or the giving or withholding of proxies.

 

ITEM 7. MATERIALS TO BE FILED AS EXHIBITS

The Filers hereby add the following disclosure to this Item 7:

 

7.4    Letter Agreement by and among the Filers, the Issuer and the Parent dated March 17, 2016.


SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

Date: March 21, 2016    

*Kevin Douglas

    KEVIN DOUGLAS
Date: March 21, 2016    

*Michelle Douglas

    MICHELLE DOUGLAS
Date: March 21, 2016    

*James E. Douglas, III

    JAMES E. DOUGLAS, III
    K&M DOUGLAS TRUST
Date: March 21, 2016    

*Kevin Douglas

    By:   Kevin Douglas
    Title:   Trustee
Date: March 21, 2016    

*Michelle Douglas

    By:   Michelle Douglas
    Title:   Trustee
    JAMES DOUGLAS AND JEAN DOUGLAS
    IRREVOCABLE DESCENDANTS’ TRUST
Date: March 21, 2016    

*Kevin Douglas

    By:   Kevin Douglas
    Title:   Trustee
Date: March 21, 2016    

*Michelle Douglas

    By:   Michelle Douglas
    Title:   Trustee
    DOUGLAS FAMILY TRUST
Date: March 21, 2016    

*James E. Douglas, Jr.

    By:   James E. Douglas, Jr.
    Title:   Trustee
Date: March 21, 2016    

*Jean A. Douglas

    By:   Jean A. Douglas
    Title:   Trustee

 

*Eileen Wheatman

/s/ Eileen Wheatman

By: Eileen Wheatman
Attorney-in-Fact
EX-99.7.4 2 d166675dex9974.htm EXHIBIT 7.4 Exhibit 7.4

Exhibit 7.4

Westport Innovations Inc.

Suite 101, 1750 West 75th Avenue

Vancouver, British Columbia

Canada V6P 6G2

March 17, 2016

James E. Douglas, III

K&M Douglas Trust

James Douglas And Jean Douglas Irrevocable Descendants’ Trust

Douglas Family Trust

c/o Douglas Telecommunications

125 East Sir Francis Drake Blvd.

Larkspur, CA 94939-1819

Attn: Tim McGraw

Reference is made to (i) that certain Voting Agreement, dated as of September 1, 2015 (the “Voting Agreement”), by and among Westport Innovations Inc., an Alberta, Canada corporation (“Parent”), Fuel Systems Solutions, Inc., a Delaware corporation (the “Company”), and each of K&M Douglas Trust, James Douglas And Jean Douglas Irrevocable Descendants’ Trust, Douglas Family Trust and James E. Douglas, III (each, a “Stockholder”, and collectively, the Stockholders), and (ii) that certain Agreement and Plan of Merger, dated as of September 1, 2015, by and among Parent, Whitehorse Merger Sub, Inc., a Delaware corporation and a direct wholly owned subsidiary of Parent, and the Company (the “Merger Agreement”), as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of March 6, 2016 (the “Amendment”).

Effective upon the appointment of Rod Nunn to the Board of Directors of Parent (the “Board” and the date of such appointment, the “Effective Date”), each Stockholder hereby acknowledges, accepts and agrees that notwithstanding anything to the contrary in the Voting Agreement, or the execution and delivery of the Amendment by the parties thereto, the Voting Agreement, as modified by this agreement, remains in full force and effect.

Each Stockholder further agrees, from the Effective Date until the earlier of (i) the closing of the transactions contemplated by the Merger Agreement, (ii) the valid termination of the Merger Agreement, or (iii) the valid termination of the Voting Agreement, as modified by this agreement, not to, directly or indirectly:

(i) solicit proxies or written consents of shareholders of Parent or conduct any other type of referendum (binding or non-binding) with respect to, or from the holders of, any common shares of Parent or any other securities of Parent entitled to vote in the election of directors, or securities convertible into or exercisable or exchangeable for such common shares or other securities (collectively, the “Voting Securities”), or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) in or assist any person or entity not a party to this letter agreement (each such person or entity, a “Third Party”) in any “solicitation” of any proxy, consent or other authority (as such terms are defined under the Exchange Act) to vote any shares of the Voting Securities (other than such encouragement, advice or influence that is consistent with Parent management’s recommendation in connection with such matter);


(ii) present at any special meeting of Parent’s shareholders any proposal for consideration for action by shareholders or seek the removal of any member of the Board or propose any nominee for election to the Board or seek representation on the Board;

(iii) make, or cause to be made, any statement or announcement that relates to and constitutes an ad hominem attack on, or relates to and otherwise disparages, Parent or its business, operations or financial performance, its officers or its directors or any person who has served as an officer or director of Parent in the past, or who serves on or following the date of this letter agreement as an officer, director or agent of Parent: (A) in any document or report filed with or furnished to the United States Securities and Exchange Commission (the “SEC”) or any other governmental agency, (B) in any press release or other publicly available format or (C) to any analyst, journalist or member of the media;

(iv) enter into any negotiations, agreements, arrangements or understandings with any Third Party with respect to the matters set forth in this letter agreement; or

(v) request, directly or indirectly, any amendment or waiver of the foregoing in a manner that would be reasonably likely to require public disclosure by the Stockholders or Parent.

Section 10 of the Voting Agreement is hereby amended in its entirety to read as follows:

“This Agreement shall automatically terminate without further action of the parties on the first to occur of (a) the mutual written consent of the Company, Parent, and the Stockholders, (b) the Effective Time, (c) the termination of the Merger Agreement, (d) the delivery of written notice of termination by the Stockholders to Parent and the Company following any Fundamental Amendment effected without the prior consent of the Stockholders, or (e) the delivery of written notice of termination by the Stockholders to Parent and the Company in the event that the Effective Time shall not have occurred on or before April 30, 2016, provided that the provisions of Section 11 hereof shall survive any such termination. “Fundamental Amendment” means the execution by Parent, Merger Sub and the Company of a written amendment to, or written waiver by Parent, Merger Sub and the Company of any provision of, the Merger Agreement (as amended by the Amendment) that reduces the amount of the Merger Consideration or changes the form of, or decreases the Exchange Ratio from what is set forth in the Merger Agreement (as amended by the Amendment) as in effect as of the date hereof, amends the conditions precedent set forth in Article VII of the Merger Agreement as amended by the Amendment (except in the case of a waiver of a condition by Parent or the Company) or would result in additional monetary liability to such Stockholder.

Please acknowledge this agreement by signing in the space provided below and returning a copy of this letter to the undersigned. Thank you.

[signature page follows]

 

- 2 -


    Very truly yours,
    WESTPORT INNOVATIONS INC.
    By  

/s/ David Demers

    Name:   David Demers
    Title:   CEO
    FUEL SYSTEMS SOLUTIONS, INC.
    By  

/s/ Pietro Bersani

    Name:   Pietro Bersani
    Title:   CFO

 

Acknowledged, Accepted and Agreed:

/s/ James E. Douglas, III

JAMES E. DOUGLAS, III

 

K&M DOUGLAS TRUST
By:  

/s/ Kevin Douglas

Name:   Kevin Douglas
Title:   Trustee
By  

/s/ Michelle Douglas

Name:   Michelle Douglas
Title:   Trustee
DOUGLAS FAMILY TRUST
By  

/s/ James E. Douglas, Jr.

Name:   James E. Douglas, Jr.
Title:   Trustee
By:  

/s/ Jean A. Douglas

Name:   Jean A. Douglas
Title:   Trustee

 

- 3 -


JAMES DOUGLAS AND JEAN DOUGLAS IRREVOCABLE DESCENDANTS’ TRUST
By:  

/s/ Kevin Douglas

Name:   Kevin Douglas
Title:   Trustee
By:  

/s/ Michelle Douglas

Name:   Michelle Douglas
Title:   Trustee

 

- 4 -