10 Startup adVANce Challenge | Startup Partnership by Mercedes-Benz Vans pursuant to the Cooperation Agreement. Daimler AG has sole discretion regarding the actual level and scope of its cooperation in each individual case. The business model that is part of the Concept must illustrate how the startup plans to gain profits from the Product. The startup will receive a Grant of € 10,000 for participating in Phase 2 (see Sec. 2.6 for more details), in case the requirements described in Sec. 2.7 are met. The startup shall submit its refined and completed Concept by the end of the period for the Call for Phase 3, i.e. July 23, 2017, 23:59 (CET) at the latest. Phase 3: Prototype Phase  Call for Phase 3 (Prototype Phase) Startups that have participated in Phase 2 (Concept Phase) can file their application for participation in Phase 3 during a filing period from July 7, 2017 through July 23, 2017, 23:59 (CET) (Call for Phase 3). The entry point for the application will be announced on the Startup adVANce Challenge Homepage (http://startup-advance.mercedes-benz.com) at the end of June 2017. The subject matter of Phase 3 is the conversion of the Concept into a functionally tested prototype that is ready for a field test run (the “Prototype”). Together with the refined and completed Concept, which shall include an elaborated business model, the startup shall submit a proposal for the Prototype, which shall also specify the proposed level of cooperation the startup may require from Daimler AG during Phase 3. In addition, the startup shall, based on a template made available via the Startup adVANce Challenge Homepage (http://startup-advance.mercedes- benz.com/apply-now/) prepare a proposal for a plan for the creation of the Prototype (the “Prototype Plan”).The proposal for the Prototype Plan shall include, inter alia, a description of the technical measures and features that are required to turn the Concept into a Prototype, broken down into work packages (each, a “Work Package”). The proposal for the Prototype Plan shall also specify the investments (costs, expenses, etc.) required to complete each Work Package and the dates and qualitative criteria for the completion of each Work Package (each a “Milestone”). More detailed information and requirements regarding the Prototype and Prototype Plan as well as supporting documents will be provided in the “Application Guidelines”, which Daimler AG will make available on the Startup adVANce Challenge Homepage (http://startup-advance.mercedes-benz.com/apply-now/).  Selection for Phase 3 (Prototype Phase) In the Selection for Phase 3 (to be completed on August 15, 2017), Daimler AG will select up to five (5) startups, which will be informed about their selection for Phase 3 (“Phase 3 Selection Notice”). Along with the Phase 3 Selection Notice, Daimler AG will specify the Work Packages that shall be the subject matter of Phase 3 and a respective adjusted Prototype Plan (the “Phase 3 Prototype Plan”).The startup shall return, by August 24, 2017, 23:59 (CET), at the latest, a duly signed copy of the Phase 3 Prototype Plan. If the startup that has received the Phase 3 Selection Notice does not submit the duly signed copy of the Phase 3 Prototype Plan by August 24, 2017, 23:59 (CET), at the latest, the startup will be excluded from participation in Phase 3 (Prototype Phase).  Phase 3 (Prototype Phase) The start of Phase 3 is August 25, 2017. During the Prototype Phase the startup shall build the Prototype in close cooperation with Daimler AG, according to the startup’s Concept, the Phase 3 Prototype Plan, and the Cooperation Agreement. The startup shall build several Prototypes with increasing maturity levels with the final Prototype being suited for use in a field test run. Therefore tests in-between the different prototypes’ maturity levels are necessary for an interactive development approach and learning effect. For example, if the Product is hardware, the stages of the Prototype could be, first, a basic Prototype for the ergonomic and / functionality test, second, a Prototype built with more advanced materials, and third, a fully functional Prototype integrated into the van. Daimler AG has sole discretion regarding the actual level and scope of its cooperation in each individual case during this Phase 3 (Prototype Phase). Each startup selected for Phase 3 will receive a Grant, subject to the further requirements described in Sec. 2.7. The Grants for Phase 3 amount to € 900,000 (net) in total for all selected startups (maximum five (5)). This amount will be allocated to the selected up to five (5) startups, whereby each selected startup will receive a Grant of € 80,000 (net) as a minimum and the remaining amount will be awarded as set out in more detail in Sec. 2.6 below. 2. ADDITIONAL TERMS AND CONDITIONS 2.1. Applicability of terms and conditions 1. The provisions in these terms and conditions apply to all Phases of the Startup adVANce Challenge and the relevant activities of Daimler AG and the startup in each Phase.