On June 1, 2015, HPEV, Inc. executed a first amendment to settlement agreement with Spirit Bear Limited and the parties identified as the assignees of Spirit Bear who are signatories to the amendment. In accordance with the terms of the amendment, Spirit Bear agreed that Jay Palmer, Carrie Dwyer and Donica Holt, the Spirit Bear holdover directors, will tender their resignation letters from the Board of Directors of the company as of the effective date, to be delivered to the company on or before June 3, 2015. Spirit Bear also agreed that it will no longer have any rights to appoint nominees to the Board of Directors.