6 Startup adVANce Challenge | Startup Partnership by Mercedes-Benz Vans The aim of Track B is to develop IoT solutions for the van, the cargo space and beyond. This includes new software and complementary hardware needed for (real time) interactions. 3. Track C: Transport Sharing Solutions Transport sharing solutions are new demand-driven vehicle-sharing arrangements, in which companies and/or private people share vehicles either simultaneously (e.g. ride-sharing for people transport and/or transport-sharing for goods transport) or over time (e.g. vehicle sharing or bike sharing), and in the process share the cost of the journey. The transport sharing solutions aims at innovative sharing concepts for goods and people transportation. Examples are:  matching algorithm for last mile delivery or people mover;  creating hybrid solutions between private vehicle use and mass or public transport;  platforms for the management and service offering of sharing solutions;  additional services and features for in-vehicle entertainment and advertising utilization;  smart combination of different means of transportation for optimized convenience;  additional services and features for in-car security and monitoring (e.g. seat monitoring); and  in-car social media platform. The aim of Track C is to develop new solutions to reduce the down time of the vehicles and therefore the costs of the vehicles. New technical sharing models and corresponding business models are in focus. As the three Tracks depict, the Startup adVANce Challenge is not about the conventional topics people have in mind when it comes to Daimler AG. Product ideas aiming to innovate the basic vehicle, like a new engine or autonomous driving vehicle, or the production of the vehicles are not what the Startup adVANce Challenge is looking for. Startups should apply with a product idea that fits in one of the three Tracks. Startups that do not offer products that fit one of the three Tracks may still apply for the accelerator program “Startup Autobahn”, in which Daimler AG is also involved. For further details see the Startup Autobahn Homepage (http://www.startup-autobahn.com/en/). 1.4. Startup Definition and reasons for exclusion, US-registered Startups 1. Startup Definition In order to participate in the Startup adVANce Challenge the startup must meet the following requirements (“Startup Definition”): Only legal entities (startups) may enter the Startup adVANce Challenge. Individuals are excluded. The startup must, throughout the Startup adVANce Challenge or to such other date as determined in the following:  not be older than 8 years as of 1 January 2017 (i.e. the startup was registered with the respective commercial register in 2009 or later);  be a duly registered legal entity (e.g. Inc., LLP, GmbH, etc.) under the laws of any country in the world (except embargoed countries);  be majority-owned (50%+) by its founders;  have, as of 1 January 2017, raised less than €10 million in external capital since it was registered with the respective commercial register; and  have a management and development team (at least 2 persons) working full-time for the applying startup. 2. Reasons for Exclusion Besides not meeting the Startup Definition, reasons for an exclusion from the Startup adVANce Challenge are if the startup:  has any shareholder that is a legal entity active in the automotive, transport or logistic industry, in particular car manufacturers, producers of transport or last mile logistic products (OEM) or suppliers (OES);  has already entered into a commercial arrangement regarding its Product with an OEM or OES;  has already entered a development partnership with an OEM or OES;  is a spin-off of an enterprise that would not qualify under the Startup Definition and this enterprise directly or indirectly owns twenty (20) percent or more of the shares of the startup;  has any shareholder that is a public authority or governmental organization;  does not accept German law as applicable law and Stuttgart as place of jurisdiction in case of litigation; or  participates in other programs or intends to apply for participation in other programs that create any conflicts, in particular due to the participation in such programs by other enterprises in the automobile, logistic or transportation business or because such programs require the publication of information about the startup’s Product before completion of the Startup adVANce Challenge.