Document:

EX-10.5

Exhibit 10.5

AMENDMENT NO. 11 TO AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

This Amendment No. 11 to Amended and Restated Receivables Purchase Agreement (this
"Amendment”) is dated as of August 29, 2007, among Avnet Receivables Corporation, a
Delaware corporation (“Seller”), Avnet, Inc., a New York corporation (“Avnet”), as
initial Servicer (the Servicer together with Seller, the “Seller Parties” and each a
"Seller Party”), each Financial Institution signatory hereto (collectively, the
"Financial Institutions”), each Company signatory hereto (the “Companies”) and
JPMorgan Chase Bank, N.A. (successor by merger to Bank One, NA (Main Office Chicago)), as agent for
the Purchasers (the “Agent”).

RECITALS

Each of the parties hereto entered into that certain Amended and Restated Receivables Purchase
Agreement, dated as of February 6, 2002, and amended such Amended and Restated Receivables Purchase
Agreement pursuant to Amendment No. 1 thereto, dated as of June 26, 2002, and further amended such
Amended and Restated Receivables Purchase Agreement pursuant to Amendment No. 2 thereto, dated as
of November 25, 2002, and further amended such Amended and Restated Receivables Purchase Agreement
pursuant to Amendment No. 3 thereto, dated as of December 9, 2002, and further amended such Amended
and Restated Receivables Purchase Agreement pursuant to Amendment No. 4 thereto, dated as of
December 12, 2002, and further amended such Amended and Restated Receivables Purchase Agreement
pursuant to Amendment No. 5 thereto, dated as of June 23, 2003, and further amended such Amended
and Restated Receivables Purchase Agreement pursuant to Amendment No. 6 thereto, dated as of August
15, 2003, and further amended such Amended and Restated Receivables Purchase Agreement pursuant to
Amendment No. 7 thereto, dated as of August 3, 2005, and further amended such Amended and Restated
Receivables Purchase Agreement pursuant to Amendment No. 8 thereto, dated as of August 1, 2006, and
further amended such Amended and Restated Receivables Purchase Agreement pursuant to Amendment No.
9 thereto, dated as of August 31, 2006, and further amended such Amended and Restated Receivables
Purchase Agreement pursuant to Amendment No. 10 thereto, dated as of January 12, 2007 (such Amended
and Restated Receivables Purchase Agreement, as so amended, the “Purchase Agreement”).

Each Seller Party has requested that the Agent and the Purchasers amend certain provisions of
the Purchase Agreement, all as more fully described herein.

Subject to the terms and conditions hereof, each of the parties hereto now desires to amend
the Purchase Agreement as more particularly described herein.

AGREEMENT

NOW, THEREFORE, in consideration of the premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

Section 1. Definitions Used Herein. Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings set forth for such terms in, or incorporated by
reference into, the Purchase Agreement.

Section 2. Amendments. Subject to the terms and conditions set forth herein, the
Purchase Agreement is hereby amended as follows:

(a) Section 9.1(f) of the Purchase Agreement is hereby amended by amending and restating such
Section in its entirety to read as follows:

As at the end of any fiscal month, the three-month rolling average
of the Delinquency Ratio Trigger shall exceed 8.00%, or the
three-month rolling average of the Dilution Ratio Trigger shall
exceed 8.25%, or the three-month rolling average of the Loss Ratio
Trigger shall exceed 5.25%.

(b) The definition of “Liquidity Termination Date” appearing in Exhibit I to the Purchase
Agreement is hereby amended by amending and restating such definition in its entirety to read as
follows:

"Liquidity Termination Date” means August 28, 2008.

(c) The definitions of each of “Default Ratio,” “Dilution Horizon Ratio,” “Dilution
Percentage,” “Dilution Ratio,” “Dilution Ratio Trigger,” “Loss Horizon Factor” and “Loss
Percentage,” each appearing in Exhibit I to the Purchase Agreement, are hereby amended by deleting
in its entirety each occurrence of the phrase “calendar month” where such phrase appears in each
such definition and replacing each such phrase with the phrase “fiscal month.”

(d) Exhibit IV to the Purchase Agreement is hereby deleted in its entirety and replaced with
Annex A hereto.

(e) Schedule D to the Purchase Agreement is hereby deleted in its entirety and replaced with
Annex B hereto.

Section 3. Conditions to Effectiveness of this Amendment. This Amendment shall become
effective as of the date hereof, upon the satisfaction of the conditions precedent that:

(a) Amendment. The Agent shall have received, on or before the date hereof, executed
counterparts of this Amendment, duly executed by each of the parties hereto.

(b) Representations and Warranties. As of the date hereof, both before and after
giving effect to this Amendment, all of the representations and warranties contained in the
Purchase Agreement and in each other Transaction Document shall be true and correct in all material
respects as though made on the date hereof (and by its execution hereof, each of Seller and the
Servicer shall be deemed to have represented and warranted such).

(c) No Amortization Event. As of the date hereof, both before and after giving effect
to this Amendment, no Amortization Event or Potential Amortization Event shall have occurred and be
continuing (and by its execution hereof, each of Seller and the Servicer shall be deemed to have
represented and warranted such).

(d) Amendment Fee. On or before the date hereof, each Financial Institution shall
have received an Amendment Fee in an amount equal to 0.05% multiplied by such Financial
Institution’s Commitment.

Section 4. Miscellaneous.

(a) Effect; Ratification. The amendments set forth herein are effective solely for
the purposes set forth herein and shall be limited precisely as written, and shall not be deemed to
(i) be a consent to, or an acknowledgment of, any amendment, waiver or modification of any other
term or condition of the Purchase Agreement or of any other instrument or agreement referred to
therein or (ii) prejudice any right or remedy which any Purchaser or the Agent may now have or may
have in the future under or in connection with the Purchase Agreement, as amended hereby, or any
other instrument or agreement referred to therein. Each reference in the Purchase Agreement to
“this Agreement,” “herein,” “hereof” and words of like import and each reference in the other
Transaction Documents to the Purchase Agreement or to the “Receivables Purchase Agreement” or to
the “Purchase Agreement” shall mean the Purchase Agreement as amended hereby. This Amendment shall
be construed in connection with and as part of the Purchase Agreement and all terms, conditions,
representations, warranties, covenants and agreements set forth in the Purchase Agreement and each
other instrument or agreement referred to therein, except as herein amended, are hereby ratified
and confirmed and shall remain in full force and effect.

(b) Transaction Documents. This Amendment is a Transaction Document executed pursuant
to the Purchase Agreement and shall be construed, administered and applied in accordance with the
terms and provisions thereof.

(c) Costs, Fees and Expenses. Without limiting Section 10.3 of the Purchase
Agreement, Seller agrees to reimburse the Agent and the Purchasers upon demand for all reasonable
and documented out-of-pocket costs, fees and expenses (including the reasonable fees and expenses
of counsels to any of the Agent and the Purchasers) incurred in connection with the preparation,
execution and delivery of this Amendment.

(d) Counterparts. This Amendment may be executed in any number of counterparts, each
such counterpart constituting an original and all of which when taken together shall constitute one
and the same instrument.

(e) Severability. Any provision contained in this Amendment that is held to be
inoperative, unenforceable or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable or invalid without affecting the remaining provisions of this Amendment
in that jurisdiction or the operation, enforceability or validity of such provision in any other
jurisdiction.

(f) GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT
WOULD REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

(g) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AMENDMENT, ANY
DOCUMENT EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AMENDMENT OR THE RELATIONSHIP ESTABLISHED
HEREUNDER OR THEREUNDER.

(h) Funding Agreement Consent. By its execution hereof, JPMorgan Chase Bank, N.A.
(successor by merger to Bank One, NA (Main Office Chicago)), in its capacity as a party to any
applicable Funding Agreement with or for the benefit of Chariot Funding LLC (successor to Preferred
Receivables Funding Company LLC) (“Chariot”), hereby (i) consents to Chariot’s execution of
this Amendment and the transactions contemplated hereby, (ii) acknowledges that this Amendment has
been made available to and has been reviewed by it, (iii) consents to this Amendment and (iv) deems
this paragraph to satisfy any applicable requirements regarding this Amendment set forth in any
such Funding Agreement.

(Signature Pages Follow)

1

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and
delivered by their respective duly authorized officers as of the date first written above.

AVNET RECEIVABLES CORPORATION, as Seller

By:

Name:

Title:

AVNET, INC., as Servicer

By:

Name:

Title:

CHARIOT FUNDING LLC (successor to Preferred

Receivables Funding Company LLC), as a Company

By:

Name:

Title:

JPMORGAN CHASE BANK, N.A. (successor by merger

to Bank One, NA (Main Office Chicago)), as a
Financial Institution and as Agent

By:

Name:

Title:

2

LIBERTY STREET FUNDING CORP., as a Company

By:

Name:

Title:

THE BANK OF NOVA SCOTIA, as a Financial

Institution

By:

Name:

Title:

3

AMSTERDAM FUNDING CORPORATION, as a Company

By:

Name:

Title:

ABN AMRO BANK N.V., as a Financial Institution

By:

Name:

Title:

By:

Name:

Title:

4

STARBIRD FUNDING CORPORATION, as a Company

By:

Name:

Title:

BNP PARIBAS, acting through its New York
Branch, as a Financial Institution

By:

Name:

Title:

By:

Name:

5

Title:

Annex A

EXHIBIT IV

NAMES OF COLLECTION BANKS; COLLECTION ACCOUNTS

	 	 	 	 	 
	Lock-Box
	 	Related Collection Account
	 
	 	 	 	 
	1. Bank of America, N.A.
Ms. Cindy Hastings
555 S. Flower Street, 3rd Floor
Los Angeles, California 90071
Lock-Boxes
	 	 	 	 
	 
	 	 	 	 
	P.O. Box 847722
Dallas, Texas 75202-7722
	 	Deposit Account Number:  3752134661
	 
	 	 	 	 
	2. JPMorgan Chase Bank, N.A.
Timothy Marek
1 Chase Manhattan Plaza, 7th Fl
New York, NY 10005
Lock-Boxes
	 	 	 	 
	 
	 	 	 	 
	P.O. Box #100340
Pasadena, California 91189-0340
P.O. Box #70390
Chicago, Illinois 60673-0390
	 	Deposit Account Number: 59-37116
	 
	 	 	 	 

6

Annex B

SCHEDULE D

PRICING GRID

	 	 	 	 	 	 	 	 	 
	Rating of Long-Term	 	 	 	 
	Debt of Avnet	 	Facility Fee	 	Program Fee
	Category 1	 	 	 	 	 	 	 	 
	BBB or higher by S&P
	 	 	 	 	 	 	 	 
	or Baa2 or higher by
	 	 	 	 	 	 	 	 
	Moody’s
	 	 	0.125	%	 	 	0.175	%
	Category 2
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BBB- by S&P or Baa3
	 	 	 	 	 	 	 	 
	by Moody’s
	 	 	0.125	%	 	 	0.225	%
	Category 3
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BB+ by S&P or Ba1 by
	 	 	 	 	 	 	 	 
	Moody’s
	 	 	0.200	%	 	 	0.300	%
	Category 4
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BB or lower by S&P or
	 	 	 	 	 	 	 	 
	Ba2 or lower by
	 	 	 	 	 	 	 	 
	Moody’s
	 	 	0.300	%	 	 	0.400	%

For purposes of the foregoing, (i) if no rating for Long-Term Debt shall be available from either
Moody’s or S&P, such rating agency shall be deemed to have established a rating for the Long-Term
Debt of Avnet which is one rating grade higher than the subordinated debt rating grade of Avnet,
(ii) if no rating for Long-Term Debt or subordinated debt of Avnet shall be available from either
Moody’s or S&P, each of the Facility Fee and the Program Fee shall be as set forth in Category 4,
(iii) if the ratings established or deemed to have been established by Moody’s and S&P shall fall
within different Categories, each of the Facility Fee and the Program Fee shall be based upon the
higher rating; provided, however, that if such ratings shall differ by more than
one notch (meaning differing by more than one numerical Category), each of the Facility Fee and the
Program Fee shall be based on the rating that is one level lower than the highest rating and (iv)
if any rating established or deemed to have been established by Moody’s or S&P shall be changed
(other than as a result of a change in the rating system of either Moody’s or S&P), such change
shall be effective as of the date on which such change is first announced by the rating agency
making such change. Each such change shall apply to all calculations involving any of the Facility
Fee or the Program Fee during the period commencing on the effective date of such change and ending
on the date immediately preceding the effective date of the next such change. If the rating system
of either Moody’s or S&P shall change, or if any such rating agency shall cease to be in the
business of rating corporate debt obligations, in each case, prior to the Facility Termination
Date, Avnet and the Agent shall negotiate in good faith to amend each of the Facility Fee and the
Program Fee hereunder to reflect such changed rating system or the unavailability of ratings from
such rating agency and, pending the effectiveness of any such amendment, each of the Facility Fee
and the Program Fee shall be determined by reference to the rating most recently in effect prior to
such change or cessation.

7EX-4.5

Exhibit 4.5

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the “Agreement”) is made and entered into as of this
24th day of August, 2007 by and among Meade Instruments Corp., a Delaware corporation
(the “Company”), and the “Investors” named in that certain Purchase Agreement by and among the
Company and the Investors (the “Purchase Agreement”). Capitalized terms used herein have the
respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.

The parties hereby agree as follows:

1. Certain Definitions.

As used in this Agreement, the following terms shall have the following meanings:

“Common Stock” shall mean the Company’s common stock, par value $0.01 per share, and
any securities into which such shares may hereinafter be reclassified.

“Investors” shall mean the Investors identified in the Purchase Agreement and any
Affiliate or permitted transferee of any Investor who is a subsequent holder of any Registrable
Securities.

“Prospectus” shall mean (i) the prospectus included in any Registration Statement, as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material
incorporated by reference in such prospectus, and (ii) any “free writing prospectus” as defined in
Rule 405 under the 1933 Act.

“Register,” “registered” and “registration” refer to a registration
made by preparing and filing a Registration Statement or similar document in compliance with the
1933 Act (as defined below), and the declaration or ordering of effectiveness of such Registration
Statement or document.

“Registrable Securities” shall mean (i) the Shares and (ii) any other securities
issued or issuable with respect to or in exchange for Registrable Securities; provided, that, a
security shall cease to be a Registrable Security upon (A) sale pursuant to a Registration
Statement or Rule 144 under the 1933 Act, or (B) such security becoming eligible for sale by the
Investors pursuant to Rule 144(k).

“Registration Statement” shall mean any registration statement of the Company filed
under the 1933 Act that covers the resale of any of the Registrable Securities pursuant to the
provisions of this Agreement, amendments and supplements to such Registration Statement, including
post-effective amendments, all exhibits and all material incorporated by reference in such
Registration Statement.

“Required Investors” means the Investors holding a majority of the Registrable
Securities.

“SEC” means the U.S. Securities and Exchange Commission.

“Shares” means the shares of Common Stock issued pursuant to the Purchase Agreement.

“1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

2. Registration.

(a) Registration Statements.

(i) Promptly following the closing of the purchase and sale of the securities contemplated by
the Purchase Agreement (the “Closing Date”) but no later than thirty (30) days after the Closing
Date (the “Filing Deadline”), the Company shall prepare and file with the SEC one Registration
Statement on Form S-1 (or, if Form S-1 is not then available to the Company, on such form of
registration statement as is then available to effect a registration for resale of the Registrable
Securities), covering the resale of the Registrable Securities. Subject to any SEC comments, such
Registration Statement shall include the plan of distribution attached hereto as Exhibit A;
provided, however, that no Investor shall be named as an “underwriter” in the Registration
Statement without the Investor’s prior written consent. Such Registration Statement also shall
cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including
Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock
splits, stock dividends or similar transactions with respect to the Registrable Securities. Such
Registration Statement shall not include any shares of Common Stock or other securities for the
account of any other holder without the prior written consent of the Required Investors. The
Registration Statement (and each amendment or supplement thereto, and each request for acceleration
of effectiveness thereof) shall be provided in accordance with Section 3(c) to the Investors and
their counsel prior to its filing or other submission. If a Registration Statement covering the
Registrable Securities is not filed with the SEC on or prior to the Filing Deadline, the Company
will make pro rata payments to each Investor, as liquidated damages and not as a penalty, in an
amount equal to 1.5% of the aggregate amount invested by such Investor for each 30-day period or
pro rata for any portion thereof following the Filing Deadline for which no Registration Statement
is filed with respect to the Registrable Securities. Such payments shall constitute the Investors’
exclusive monetary remedy for such events, but shall not affect the right of the Investors to seek
injunctive relief. Such payments shall be made to each Investor in cash.

(iii) S-3 Qualification. Promptly following the date (the “Qualification Date”) upon
which the Company becomes eligible to use a registration statement on Form S-3 to register the
Registrable Securities for resale, but in no event more than thirty (30) days after the
Qualification Date (the “Qualification Deadline”), the Company shall file a registration statement
on Form S-3 covering the Registrable Securities (or a post-effective amendment on Form S-3 to the
registration statement on Form S-1) (a “Shelf Registration Statement”) and shall use commercially
reasonable efforts to cause such Shelf Registration Statement to be declared effective as promptly
as practicable thereafter. If a Shelf Registration Statement covering the Registrable Securities
is not filed with the SEC on or prior to the Qualification Deadline, the Company will make pro rata
payments to each Investor, as liquidated damages and not as a penalty, in an amount equal to 1.5%
of the aggregate purchase price paid by such Investor pursuant to the Purchase Agreement
attributable to those Registrable Securities that remain unsold at that time for each 30-day period
or pro rata for any portion thereof following the date by which such Shelf Registration Statement
should have been filed for which no such Shelf Registration Statement is filed with respect to the
Registrable Securities. Such payments shall constitute the Investors’ exclusive monetary remedy
for such events, but shall not affect the right of the Investors to seek injunctive relief. Such
payments shall be made to each Investor in cash.

(b) Expenses. The Company will pay all expenses associated with each registration,
including filing and printing fees, the Company’s counsel and accounting fees and expenses, costs
associated with clearing the Registrable Securities for sale under applicable state securities
laws, listing fees, fees and expenses of one counsel to the Investors (up to a maximum of $5,000)
and the Investors’ reasonable expenses in connection with the registration, but excluding
discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar
securities industry professionals with respect to the Registrable Securities being sold.

(c) Effectiveness.

(i) The Company shall use commercially reasonable efforts to have the Registration Statement
declared effective as soon as practicable. The Company shall notify the Investors by facsimile or
e-mail as promptly as practicable, and in any event, within twenty-four (24) hours, after any
Registration Statement is declared effective and shall simultaneously provide the Investors with
copies of any related Prospectus to be used in connection with the sale or other disposition of the
securities covered thereby. If (A)(x) a Registration Statement covering the Registrable Securities
is not declared effective by the SEC prior to the earlier of (i) five (5) Business Days after the
SEC shall have informed the Company that no review of the Registration Statement will be made or
that the SEC has no further comments on the Registration Statement or (ii) the 120th day
after the Closing Date or (y) a Shelf Registration Statement is not declared effective by the SEC
within ninety (90) days after the Qualification Deadline (the “Shelf Effectiveness Deadline”), or
(B) after a Registration Statement has been declared effective by the SEC, sales cannot be made
pursuant to such Registration Statement for any reason (including without limitation by reason of a
stop order, or the Company’s failure to update the Registration Statement), but excluding any
Allowed Delay (as defined below) or the inability of any Investor to sell the Registrable
Securities covered thereby due to market conditions, then the Company will make pro rata payments
to each Investor, as liquidated damages and not as a penalty, in an amount equal to 1.5% of the
aggregate amount invested by such Investor for each 30- day period or pro rata for any portion
thereof following the date by which such Registration Statement should have been effective (the
“Blackout Period”). Such payments shall constitute the Investors’ exclusive monetary remedy for
such events, but shall not affect the right of the Investors to seek injunctive relief. The
amounts payable as liquidated damages pursuant to this paragraph shall be paid monthly within three
(3) Business Days of the last day of each month following the commencement of the Blackout Period
until the termination of the Blackout Period. Such payments shall be made to each Investor in
cash.

(ii) For not more than twenty (20) consecutive days or for a total of not more than forty-five
(45) days in any twelve (12) month period, the Company may suspend the use of any Prospectus
included in any Registration Statement contemplated by this Section in the event that the Company
determines in good faith that such suspension is necessary to (A) delay the disclosure of material
non-public information concerning the Company, the disclosure of which at the time is not, in the
good faith opinion of the Company, in the best interests of the Company or (B) amend or supplement
the affected Registration Statement or the related Prospectus so that such Registration Statement
or Prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the case of the
Prospectus in light of the circumstances under which they were made, not misleading (an “Allowed
Delay”); provided, that the Company shall promptly (a) notify each Investor in writing of the
commencement of and the reasons for an Allowed Delay, but shall not (without the prior written
consent of an Investor) disclose to such Investor any material non-public information giving rise
to an Allowed Delay, (b) advise the Investors in writing to cease all sales under the Registration
Statement until the end of the Allowed Delay and (c) use commercially reasonable efforts to
terminate an Allowed Delay as promptly as practicable. Prior to the earlier of (i) the Shelf
Effectiveness Deadline or (ii) the date on which the Shelf Registration Statement is declared
effective, the Company may extend the period of any Allowed Delay to not more than a total of
thirty (30) consecutive days or to not more than a total of 60 days in any twelve (12) month period
if such extension is reasonably necessary in order for the SEC to declare effective a
post-effective amendment to the Registration Statement.

(d) Rule 415; Cutbacks. If at any time the SEC takes the position that the offering
of some or all of the Registrable Securities in a Registration Statement is not eligible to be made
on a delayed or continuous basis under the provisions of Rule 415 under the 1933 Act or requires
any Investor to be named as an “underwriter”, the Company shall use its commercially reasonable
best efforts to persuade the SEC that the offering contemplated by the Registration Statement is a
valid secondary offering and not an offering “by or on behalf of the issuer” as defined in Rule 415
and that none of the Investors is an “underwriter”. The Investors shall have the right to
participate or have their counsel participate in any meetings or discussions with the SEC regarding
the SEC’s position and to comment or have their counsel comment on any written submission made to
the SEC with respect thereto. No such written submission shall be made to the SEC to which the
Investors’ counsel reasonably objects. In the event that, despite the Company’s commercially
reasonable efforts and compliance with the terms of this Section 2(d), the SEC refuses to alter its
position, the Company shall (i) remove from the Registration Statement such portion of the
Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions and
limitations on the registration and resale of the Registrable Securities as the SEC may require to
assure the Company’s compliance with the requirements of Rule 415; provided, however, that the
Company shall not agree to name any Investor as an “underwriter” in such Registration Statement
without the prior written consent of such Investor (collectively, the “SEC Restrictions”). Any
cut-back imposed on the Investors pursuant to this Section 2(d) shall be allocated among the
Investors on a pro rata basis, unless the SEC Restrictions otherwise require or provide. No
liquidated damages shall accrue on or as to any Cut Back Shares until the earlier of (i) the
six-month anniversary of the Closing Date or (ii) such time as the Company is able to effect the
registration of the Cut Back Shares in accordance with any SEC Restrictions (the earlier of such
dates, the “Restriction Termination Date”). From and after the Restriction Termination Date, all
of the provisions of this Section 2 (including the liquidated damages provisions) shall again be
applicable to the Cut Back Shares.

3. Company Obligations. The Company will use commercially reasonable efforts to
effect the registration of the Registrable Securities in accordance with the terms hereof, and
pursuant thereto the Company will, as expeditiously as possible:

(a) use commercially reasonable efforts to cause such Registration Statement to become
effective and to remain continuously effective for a period that will terminate upon the earlier of
(i) the date on which all Registrable Securities covered by such Registration Statement as amended
from time to time, have been sold, and (ii) the date on which all Registrable Securities covered by
such Registration Statement may be sold pursuant to Rule 144(k) (the “Effectiveness Period”) and
advise the Investors in writing when the Effectiveness Period has expired;

(b) prepare and file with the SEC such amendments and post-effective amendments to the
Registration Statement and the Prospectus as may be necessary to keep the Registration Statement
effective for the Effectiveness Period and to comply with the provisions of the 1933 Act and the
1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;

(c) provide copies to and permit counsel designated by the Investors to review each
Registration Statement and all amendments and supplements thereto no fewer than seven (7) days
prior to their filing with the SEC and not file any document to which such counsel reasonably
objects;

(d) furnish to the Investors and their legal counsel (i) promptly after the same is prepared
and publicly distributed, filed with the SEC, or received by the Company (but not later than two
(2) Business Days after the filing date, receipt date or sending date, as the case may be) one (1)
copy of any Registration Statement and any amendment thereto, each preliminary prospectus and
Prospectus and each amendment or supplement thereto, and each letter written by or on behalf of the
Company to the SEC or the staff of the SEC, and each item of correspondence from the SEC or the
staff of the SEC, in each case relating to such Registration Statement (other than any portion of
any thereof which contains information for which the Company has sought confidential treatment),
and (ii) such number of copies of a Prospectus, including a preliminary prospectus, and all
amendments and supplements thereto and such other documents as each Investor may reasonably request
in order to facilitate the disposition of the Registrable Securities owned by such Investor that
are covered by the related Registration Statement;

(e) (i) promptly notify the Investors of the issuance of any stop order or other suspension of
the effectiveness of any Registration Statement and (ii) use commercially reasonable efforts to (A)
prevent the issuance of any stop order or other suspension of effectiveness and, (B) if such order
is issued, obtain the withdrawal of any such order at the earliest possible moment;

(f) prior to any public offering of Registrable Securities, use commercially reasonable
efforts to register or qualify or cooperate with the Investors and their counsel in connection with
the registration or qualification of such Registrable Securities for offer and sale under the
securities or blue sky laws of such jurisdictions requested by the Investors and do any and all
other commercially reasonable acts or things necessary or advisable to enable the distribution in
such jurisdictions of the Registrable Securities covered by the Registration Statement; provided,
however, that the Company shall not be required in connection therewith or as a condition thereto
to (i) qualify to do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(f), (ii) subject itself to general taxation in any jurisdiction
where it would not otherwise be so subject but for this Section 3(f), or (iii) file a general
consent to service of process in any such jurisdiction;

(g) use commercially reasonable efforts to cause all Registrable Securities covered by a
Registration Statement to be listed on each securities exchange, interdealer quotation system or
other market on which similar securities issued by the Company are then listed;

(h) immediately notify the Investors, at any time prior to the end of the Effectiveness
Period, upon discovery that the Prospectus includes an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing, and promptly prepare, file with
the SEC and furnish to such holder a supplement to or an amendment of such Prospectus as may be
necessary so that such Prospectus shall not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing; and

(i) otherwise use commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC under the 1933 Act and the 1934 Act, including, without limitation, Rule 172
under the 1933 Act, file any final Prospectus, including any supplement or amendment thereof, with
the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at
any time during the Effectiveness Period, the Company does not satisfy the conditions specified in
Rule 172 and, as a result thereof, the Investors are required to deliver a Prospectus in connection
with any disposition of Registrable Securities and take such other actions as may be reasonably
necessary to facilitate the registration of the Registrable Securities hereunder; and make
available to its security holders, as soon as reasonably practicable, but not later than the
Availability Date (as defined below), an earnings statement covering a period of at least twelve
(12) months, beginning after the effective date of each Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the 1933 Act, including Rule 158
promulgated thereunder (for the purpose of this subsection 3(i), “Availability Date” means the 45th
day following the end of the fourth fiscal quarter that includes the effective date of such
Registration Statement, except that, if such fourth fiscal quarter is the last quarter of the
Company’s fiscal year, “Availability Date” means the 90th day after the end of such fourth fiscal
quarter).

(j) With a view to making available to the Investors the benefits of Rule 144 (or its
successor rule) and any other rule or regulation of the SEC that may at any time permit the
Investors to sell shares of Common Stock to the public without registration, the Company covenants
and agrees to: (i) make and keep public information available, as those terms are understood and
defined in Rule 144, until the earlier of (A) six months after such date as all of the Registrable
Securities may be resold pursuant to Rule 144(k) or any other rule of similar effect or (B) such
date as all of the Registrable Securities shall have been resold; (ii) file with the SEC in a
timely manner all reports and other documents required of the Company under the 1934 Act; and (iii)
furnish to each Investor upon request, as long as such Investor owns any Registrable Securities,
(A) a written statement by the Company that it has complied with the reporting requirements of the
1934 Act, (B) a copy of the Company’s most recent Annual Report on Form 10-K or Quarterly Report on
Form 10-Q, and (C) such other information as may be reasonably requested in order to avail such
Investor of any rule or regulation of the SEC that permits the selling of any such Registrable
Securities without registration.

4. Due Diligence Review; Information. The Company shall make available, during normal
business hours, for inspection and review by the Investors, advisors to and representatives of the
Investors (who may or may not be affiliated with the Investors and who are reasonably acceptable to
the Company), all financial and other records, all SEC Filings (as defined in the Purchase
Agreement) and other filings with the SEC, and all other corporate documents and properties of the
Company as may be reasonably necessary for the purpose of such review, and cause the Company’s
officers, directors and employees, within a reasonable time period, to supply all such information
reasonably requested by the Investors or any such representative, advisor or underwriter in
connection with such Registration Statement (including, without limitation, in response to all
questions and other inquiries reasonably made or submitted by any of them), prior to and from time
to time after the filing and effectiveness of the Registration Statement for the sole purpose of
enabling the Investors and such representatives, advisors and underwriters and their respective
accountants and attorneys to conduct initial and ongoing due diligence with respect to the Company
and the accuracy of such Registration Statement.

The Company shall not disclose material nonpublic information to the Investors, or to advisors
to or representatives of the Investors, unless prior to disclosure of such information the Company
identifies such information as being material nonpublic information and provides the Investors,
such advisors and representatives with the opportunity to accept or refuse to accept such material
nonpublic information for review and any Investor wishing to obtain such information enters into an
appropriate confidentiality agreement with the Company with respect thereto.

5. Obligations of the Investors.

(a) Each Investor shall furnish in writing to the Company such information regarding itself,
the Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it, as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such registration as the
Company may reasonably request. At least five (5) Business Days prior to the first anticipated
filing date of any Registration Statement, the Company shall notify each Investor of the
information the Company requires from such Investor if such Investor elects to have any of the
Registrable Securities included in the Registration Statement. An Investor shall provide such
information to the Company at least two (2) Business Days prior to the first anticipated filing
date of such Registration Statement if such Investor elects to have any of the Registrable
Securities included in the Registration Statement.

(b) Each Investor, by its acceptance of the Registrable Securities agrees to cooperate with
the Company as reasonably requested by the Company in connection with the preparation and filing of
a Registration Statement hereunder, unless such Investor has notified the Company in writing of its
election to exclude all of its Registrable Securities from such Registration Statement.

(c) Each Investor agrees that, upon receipt of any notice from the Company of either (i) the
commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event
pursuant to Section 3(h) hereof, such Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such Registrable Securities,
until the Investor is advised by the Company that such dispositions may again be made.

6. Indemnification.

(a) Indemnification by the Company. The Company will indemnify and hold harmless each
Investor and its officers, directors, members, employees and agents, successors and assigns, and
each other person, if any, who controls such Investor within the meaning of the 1933 Act, against
any losses, claims, damages or liabilities, joint or several, to which they may become subject
under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement, any preliminary Prospectus
or final Prospectus, or any amendment or supplement thereof; (ii) any blue sky application or other
document executed by the Company specifically for that purpose or based upon written information
furnished by the Company filed in any state or other jurisdiction in order to qualify any or all of
the Registrable Securities under the securities laws thereof (any such application, document or
information herein called a “Blue Sky Application”); (iii) the omission or alleged omission to
state in a Blue Sky Application a material fact required to be stated therein or necessary to make
the statements therein not misleading; (iv) any violation by the Company or its agents of any rule
or regulation promulgated under the 1933 Act applicable to the Company or its agents and relating
to action or inaction required of the Company in connection with such registration; or (v) any
failure to register or qualify the Registrable Securities included in any such Registration
Statement in any state where the Company or its agents has affirmatively undertaken or agreed in
writing that the Company will undertake such registration or qualification on an Investor’s behalf
and will reimburse such Investor, and each such officer, director or member and each such
controlling person for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the Company will not be liable in any such case if and to the extent that any
such loss, claim, damage or liability arises out of or is based upon (1) an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity with information
furnished by such Investor or any such controlling person in writing specifically for use in such
Registration Statement or Prospectus or (2) the delivery by such Investor of an outdated or
defective Prospectus after the Company has notified such Investor in writing that the Company does
not meet the conditions for use of Rule 172 and that (A) as a result the Investor must deliver a
Prospectus in connection with any sales under the Registration Statement and (B) the Prospectus is
outdated or defective and prior to the receipt by such Investor of an amended or supplemented
Prospectus, but only if and to the extent that following the receipt of the amended or supplemented
Prospectus the misstatement or omission giving rise to such loss, claim, damage or liability would
have been corrected.

(b) Indemnification by the Investors. Each Investor agrees, severally but not
jointly, to indemnify and hold harmless, to the fullest extent permitted by law, the Company, its
directors, officers, employees, stockholders and each person who controls the Company (within the
meaning of the 1933 Act) against any losses, claims, damages, liabilities and expense (including
reasonable attorney fees) resulting from (x) such Investor’s failure to deliver a Prospectus in
connection with any sales under the Registration after the Company has advised the Investor in
writing that (A) the Company does not meet the conditions for use of Rule 172 and (B) as a result
the Investor must deliver a Prospectus in connection with any sales under the Registration
Statement or (y) any untrue statement of a material fact or any omission of a material fact
required to be stated in the Registration Statement or Prospectus or preliminary Prospectus or
amendment or supplement thereto or necessary to make the statements therein not misleading, to the
extent, but only to the extent that such untrue statement or omission is contained in (1) any
information furnished in writing by such Investor to the Company specifically for inclusion in such
Registration Statement or Prospectus or amendment or supplement thereto or (2) in an outdated or
defective Prospectus delivered by the Investor in connection with any sales under the Registration
Statement after the Company has notified such Investor in writing that the Company does not meet
the conditions for use of Rule 172 and that (A) as a result the Investor must deliver a Prospectus
in connection with any sales under the Registration Statement and (B) the Prospectus is outdated or
defective and prior to the receipt by such Investor of an amended or supplemented Prospectus, but
only if and to the extent that following the receipt of the amended or supplemented Prospectus the
misstatement or omission giving rise to such loss, claim, damage or liability would have been
corrected. In no event shall the liability of an Investor be greater in amount than the dollar
amount of the proceeds (net of all expense paid by such Investor in connection with any claim
relating to this Section 6 and the amount of any damages such Investor has otherwise been required
to pay by reason of such untrue statement or omission) received by such Investor upon the sale of
the Registrable Securities included in the Registration Statement giving rise to such
indemnification obligation.

(c) Conduct of Indemnification Proceedings. Any person entitled to indemnification
hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which
it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided that any
person entitled to indemnification hereunder shall have the right to employ separate counsel and to
participate in the defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses,
or (b) the indemnifying party shall have failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such
person, based upon written advice of its counsel, a conflict of interest exists between such person
and the indemnifying party with respect to such claims (in which case, if the person notifies the
indemnifying party in writing that such person elects to employ separate counsel at the expense of
the indemnifying party, the indemnifying party shall not have the right to assume the defense of
such claim on behalf of such person); and provided, further, that the failure of
any indemnified party to give notice as provided herein shall not relieve the indemnifying party of
its obligations hereunder, except to the extent that such failure to give notice shall materially
adversely affect the indemnifying party in the defense of any such claim or litigation. It is
understood that the indemnifying party shall not, in connection with any proceeding in the same
jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any
time for all such indemnified parties. No indemnifying party will, except with the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect of such claim or litigation.

(d) Contribution. If for any reason the indemnification provided for in the preceding
paragraphs (a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless,
other than as expressly specified therein, then the indemnifying party shall contribute to the
amount paid or payable by the indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of the indemnified
party and the indemnifying party, as well as any other relevant equitable considerations. No
person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act
shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation.
In no event shall the contribution obligation of a holder of Registrable Securities be greater in
amount than the dollar amount of the proceeds (net of all expenses paid by such holder in
connection with any claim relating to this Section 6 and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission) received by it upon the sale of the Registrable Securities giving rise to such
contribution obligation.

7. Miscellaneous.

(a) Amendments and Waivers. This Agreement may be amended only by a writing signed by
the Company and the Required Investors. The Company may take any action herein prohibited, or omit
to perform any act herein required to be performed by it, only if the Company shall have obtained
the written consent to such amendment, action or omission to act, of the Required Investors.

(b) Notices. All notices and other communications provided for or permitted hereunder
shall be made as set forth in Section 9.4 of the Purchase Agreement.

(c) Assignments and Transfers by Investors. The provisions of this Agreement shall be
binding upon and inure to the benefit of the Investors and their respective successors and assigns.
An Investor may transfer or assign, in whole or from time to time in part, to one or more persons
its rights hereunder in connection with the transfer of Registrable Securities by such Investor to
such person, provided that such Investor complies with all laws applicable thereto and provides
written notice of assignment to the Company promptly after such assignment is effected.

(d) Assignments and Transfers by the Company. This Agreement may not be assigned by
the Company (whether by operation of law or otherwise) without the prior written consent of the
Required Investors, provided, however, that the Company may assign its rights and delegate its
duties hereunder to any surviving or successor corporation in connection with a merger or
consolidation of the Company with another corporation, or a sale, transfer or other disposition of
all or substantially all of the Company’s assets to another corporation, without the prior written
consent of the Required Investors, after notice duly given by the Company to each Investor.

(e) Benefits of the Agreement. The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective permitted successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

(f) Counterparts; Faxes. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement may also be executed via facsimile, which shall be deemed an
original.

(g) Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

(h) Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof but shall be
interpreted as if it were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which renders any
provisions hereof prohibited or unenforceable in any respect.

(i) Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

(j) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter.

(k) Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of New York
without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York
County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the
transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably
consents to the jurisdiction of any such court in any such suit, action or proceeding and to the
laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of
venue of any such suit, action or proceeding brought in such courts and irrevocably waives any
claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

1

IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date first above written.

	 	 	 
	The Company:

	 	MEADE INSTRUMENTS CORP.
	
 
	 	By: /s/ Paul E. Ross
	
 
	 	 
	
 
	 	Name: Paul E. Ross

Title: Sr. Vice President, Finance — CFO

2

	 	 	 
	The Investors:

	 	SPECIAL SITUATIONS FUND III QP, L.P.
	
 
	 	By: /s/ David M. Greenhouse
	
 
	 	 
	
 
	 	Name: David M. Greenhouse

Title: General Partner

3

	 	 	 
	
 
	 	MILLENNIUM PARTNERS, L.P.
	
 
	 	By: Millennium Management, L.L.C.
	
 
	 	By: /s/ Terry Feeney
	
 
	 	 
	
 
	 	Name: Terry Feeney

Title: Chief Operating Officer

4

	 	 	 
	
 
	 	HUMMINGBIRD CONCENTRATED FUND, L.P.
	
 
	 	By: Hummingbird Capital, LLC,

Its general partner
	
 
	 	By: /s/ Paul D. Sonkin
	
 
	 	 
	
 
	 	Name: Paul D. Sonkin

Title: Managing Member

HUMMINGBIRD VALUE FUND, L.P.
	
 
	 	By: Hummingbird Capital, LLC,

Its general partner
	
 
	 	By: /s/ Paul D. Sonkin
	
 
	 	 
	
 
	 	Name: Paul D. Sonkin

Title: Managing Member
	
 
	 	HUMMINGBIRD MICROCAP VALUE FUND, L.P.
	
 
	 	By: Hummingbird Capital, LLC,

Its general partner
	
 
	 	By: /s/ Paul D. Sonkin
	
 
	 	 

	 	 	Name: Paul D. Sonkin

Title: Managing Member

5

Exhibit A

Plan of Distribution

The selling stockholders, which as used herein includes donees, pledgees, transferees or other
successors-in-interest selling shares of common stock or interests in shares of common stock
received after the date of this prospectus from a selling stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell, transfer or otherwise
dispose of any or all of their shares of common stock or interests in shares of common stock on any
stock exchange, market or trading facility on which the shares are traded or in private
transactions. These dispositions may be at fixed prices, at prevailing market prices at the time
of sale, at prices related to the prevailing market price, at varying prices determined at the time
of sale, or at negotiated prices.

The selling stockholders may use any one or more of the following methods when disposing of
shares or interests therein:

• ordinary brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

• block trades in which the broker-dealer will attempt to sell the shares as agent, but may
position and resell a portion of the block as principal to facilitate the transaction;

• purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

• an exchange distribution in accordance with the rules of the applicable exchange;

• privately negotiated transactions;

• short sales effected after the date the registration statement of which this Prospectus is a
part is declared effective by the SEC;

• through the writing or settlement of options or other hedging transactions, whether through
an options exchange or otherwise;

• broker-dealers may agree with the selling stockholders to sell a specified number of such
shares at a stipulated price per share; and

• a combination of any such methods of sale.

The selling stockholders may, from time to time, pledge or grant a security interest in some
or all of the shares of common stock owned by them and, if they default in the performance of their
secured obligations, the pledgees or secured parties may offer and sell the shares of common stock,
from time to time, under this prospectus, or under an amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest as selling
stockholders under this prospectus. The selling stockholders also may transfer the shares of
common stock in other circumstances, in which case the transferees, pledgees or other successors in
interest will be the selling beneficial owners for purposes of this prospectus.

In connection with the sale of our common stock or interests therein, the selling stockholders
may enter into hedging transactions with broker-dealers or other financial institutions, which may
in turn engage in short sales of the common stock in the course of hedging the positions they
assume. The selling stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common stock to broker-dealers
that in turn may sell these securities. The selling stockholders may also enter into option or
other transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other financial
institution of shares offered by this prospectus, which shares such broker-dealer or other
financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect
such transaction).

The aggregate proceeds to the selling stockholders from the sale of the common stock offered
by them will be the purchase price of the common stock less discounts or commissions, if any. Each
of the selling stockholders reserves the right to accept and, together with their agents from time
to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly
or through agents. We will not receive any of the proceeds from this offering.

The selling stockholders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act of 1933, provided that they meet
the criteria and conform to the requirements of that rule.

The selling stockholders and any underwriters, broker-dealers or agents that participate in
the sale of the common stock or interests therein may be “underwriters” within the meaning of
Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn
on any resale of the shares may be underwriting discounts and commissions under the Securities Act.
Selling stockholders who are “underwriters” within the meaning of Section 2(11) of the Securities
Act will be subject to the prospectus delivery requirements of the Securities Act.

To the extent required, the shares of our common stock to be sold, the names of the selling
stockholders, the respective purchase prices and public offering prices, the names of any agents,
dealer or underwriter, any applicable commissions or discounts with respect to a particular offer
will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.

In order to comply with the securities laws of some states, if applicable, the common stock
may be sold in these jurisdictions only through registered or licensed brokers or dealers. In
addition, in some states the common stock may not be sold unless it has been registered or
qualified for sale or an exemption from registration or qualification requirements is available and
is complied with.

We have advised the selling stockholders that the anti-manipulation rules of Regulation M
under the Exchange Act may apply to sales of shares in the market and to the activities of the
selling stockholders and their affiliates. In addition, to the extent applicable we will make
copies of this prospectus (as it may be supplemented or amended from time to time) available to the
selling stockholders for the purpose of satisfying the prospectus delivery requirements of the
Securities Act. The selling stockholders may indemnify any broker-dealer that participates in
transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.

We have agreed to indemnify the selling stockholders against liabilities, including
liabilities under the Securities Act and state securities laws, relating to the registration of the
shares offered by this prospectus.

We have agreed with the selling stockholders to keep the registration statement of which this
prospectus constitutes a part effective until the earlier of (1) such time as all of the shares
covered by this prospectus have been disposed of pursuant to and in accordance with the
registration statement or (2) the date on which the shares may be sold pursuant to Rule 144(k) of
the Securities Act.

6

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