Document:

exv10w48

 

Exhibit 10.48

[Name]

Employee ID Number: [Number]

Grant Number: [Number]

APPLIED MATERIALS, INC.

RESTRICTED STOCK AGREEMENT

     Applied Materials, Inc. (the “Company”) hereby grants you, [Name] (the “Employee”), an award
of Restricted Stock under the Company’s Employee Stock Incentive Plan (the “Plan”). The date of
this Agreement is [DATE] (the “Grant Date”). Subject to the provisions set forth in the attached
Appendix A and of the Plan, the principal features of this grant are as follows:

	 	 	 	 	 
	Number
of Shares of Restricted Stock:   [Number]

	 	Purchase Price per Share:
	 	US $0.01
	 
	 	 	 	 
	Scheduled Vesting Dates/Period of Restriction:

	 	Number of Shares:	 	 
	 
	 	 	 	 
	[VESTING SCHEDULE and/or PERFORMANCE VESTING CONDITIONS]*

	 	[Number]	 	 

IMPORTANT:

 

			
	*	 	Except as otherwise provided in Appendix A, Employee will not vest in the Restricted Stock
unless he or she is employed by the Company or one of its Affiliates through the applicable vesting
date.

     Your signature below indicates your agreement to purchase the shares of Restricted Stock
(the “Shares”)and your understanding that this grant is subject to all of the terms and
conditions contained in Appendix A and the Plan. For example, important additional information on
vesting and forfeiture of the Shares covered by this grant is contained in paragraphs 3 through 6
of Appendix A. PLEASE BE SURE TO READ ALL OF APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND
CONDITIONS OF THIS GRANT.

     By clicking the “ACCEPT” button below, you agree to the following: “This electronic contract
contains my electronic signature, which I have executed with the intent to sign this Agreement.”

	 	 	 
	EMPLOYEE
	 	 
	 
	 	 
	 

[Name]

	 	 
	 
	 	 
	Date: [DATE]
	 	 

 

 

Please be sure to retain a copy of your returned electronically signed Agreement; you may obtain a
paper copy at any time and at the Company’s expense by requesting one from Stock Programs (see
Paragraph 11 below). If you prefer not to electronically sign this Agreement, you may accept this
Agreement by signing a paper copy of the Agreement and delivering it to Stock Programs.

 

 

APPENDIX A

TERMS AND CONDITIONS OF RESTRICTED STOCK GRANT

     1. Grant. The Company hereby grants to the Employee under the Plan an award of
[Number] Shares for $0.01 per Share, commencing on the Grant Date, subject to all of the terms and
conditions in this Agreement and the Plan. By accepting this grant of Restricted Stock, the par
value purchase price for each share of Restricted Stock (a) will be deemed paid by the Employee by
past services rendered by the Employee, if the Employee is an existing employee of the Company or
one of its Affiliates and not a newly-hired employee, or (b) shall be paid to the Company by cash
or check by the Employee, if the Employee is a newly-hired employee of the Company or one of its
Affiliates. Only whole shares shall be issued.

     2. Shares Held in Escrow. Unless and until the Shares will have vested in the manner
set forth in paragraphs 3 through 5, such Shares will be issued in the name of the Employee and
held by the Stock Programs Department of the Company (or its designee) as escrow agent (the “Escrow
Agent”), and will not be sold, transferred or otherwise disposed of, and will not be pledged or
otherwise hypothecated. The Company may determine to issue the Shares in book entry form and/or
may instruct the transfer agent for its Common Stock to place a legend on the certificate or
certificates representing the Restricted Stock or otherwise note in its records as to the
restrictions on transfer set forth in this Agreement and the Plan. The Shares, which may be issued
in certificate or book entry form, will not be delivered by the Escrow Agent to the Employee unless
and until the Shares have vested and all other terms and conditions in this Agreement have been
satisfied.

     3. Vesting Schedule/Period of Restriction. Except as provided in paragraphs 4 and 5,
and subject to paragraph 6, the Shares awarded by this Agreement shall vest in accordance with the
vesting provisions set forth on the first page of this Agreement. Shares shall not vest in the
Employee in accordance with any of the provisions of this Agreement unless the Employee shall have
been continuously employed by the Company or by one of its Affiliates from the Grant Date until the
date vesting otherwise is scheduled to occur.

     4. Modifications to Vesting Schedule.

     (a) Vesting upon Personal Leave of Absence. In the event that the Employee takes a personal
leave of absence (“PLOA”), the Shares awarded by this Agreement that are scheduled to vest shall be
modified as follows:

     (i) if the duration of the Employee’s PLOA is six (6) months or less, the vesting schedule set
forth on the first page of this Agreement shall not be affected by the Employee’s PLOA.

     (ii) if the duration of the Employee’s PLOA is greater than six (6) months but not more than
twelve (12) months, the scheduled vesting of any Shares awarded by this Agreement that are not then
vested shall be deferred for a period of time equal to the duration of the Employee’s PLOA less six
(6) months unless otherwise recommended by the Company’s VP of HR.

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     (iii) if the duration of the Employee’s PLOA is greater than twelve (12) months, any Shares
awarded by this Agreement that are not then vested will immediately terminate unless otherwise
recommended by the Company’s VP of HR and approved by the CEO.

     (iv) Example 1. Employee is scheduled to vest in Shares on January 1, 2007. On May 1, 2006,
Employee begins a six-month PLOA. Employee’s Shares will still be scheduled to vest on January 1,
2007.

     (v) Example 2. Employee is scheduled to vest in Shares on January 1, 2007. On May 1, 2006,
Employee begins a nine-month PLOA. Employee’s Shares awarded by this Agreement that are scheduled
to vest after November 2, 2006 will be modified (this is the date on which the Employee’s PLOA
exceeds six (6) months). Employee’s Shares now will be scheduled to vest on April 1, 2007 (three
(3) months after the originally scheduled date).

     (vi) Example 3. Employee is scheduled to vest in Shares on January 1, 2007. On May 1, 2006,
Employee begins a 13-month PLOA. Employee’s Shares will terminate on May 2, 2007 unless otherwise
recommended by the Company’s VP of HR and approved by the CEO.

     In general, a “personal leave of absence” does not include any legally required leave of
absence. The duration of the Employee’s PLOA will be determined over a rolling twelve- (12-) month
measurement period. Shares awarded by this Agreement that are scheduled to vest during the first
six (6) months of the Employee’s PLOA will continue to vest as scheduled. However, Shares awarded
by this Agreement that are scheduled to vest after the first six (6) months of the Employee’s PLOA
will be deferred or terminated depending on the length of the Employee’s PLOA. The Employee’s right
to vest in Shares awarded by this Agreement shall be modified as soon as the duration of the
Employee’s PLOA exceeds six (6) months.

     (b) Death of Employee. In the event that the Employee incurs a Termination of Service due to
his or her death, one hundred percent (100%) of the Shares subject to this Restricted Stock award
shall vest on the date of the Employee’s death. In the event that any applicable law limits the
Company’s ability to accelerate the vesting of this award of Restricted Stock, this Paragraph 4(b)
shall be limited to the extent required to comply with applicable law. Notwithstanding any contrary
provision of this Agreement, if the Employee is subject to Hong Kong’s ORSO provisions, the first
sentence of this Paragraph 4 (b) shall not apply to this award of Restricted Stock.

     5. Committee Discretion. The Committee, in its discretion, may accelerate the vesting
of the balance, or some lesser portion of the balance, of the unvested Shares at any time, subject
to the terms of the Plan. If so accelerated, such Shares will be considered as having vested as of
the date specified by the Committee.

     6. Forfeiture. Notwithstanding any contrary provision of this Agreement, the balance
of the Shares that have not vested at the time of Employee’s Termination of Service will be
forfeited and automatically transferred to and reacquired by the Company at no cost to the Company
upon the date the Employee incurs a Termination of Service for any reason. The Employee shall not
be entitled to a refund of the price paid for the Shares returned to the Company pursuant to this
paragraph 6. The Employee hereby appoints the Escrow Agent with full power of substitution, as

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the Employee’s true and lawful attorney-in-fact with irrevocable power and authority in the
name and on behalf of the Employee to take any action and execute all documents and instruments,
including, without limitation, stock powers which may be necessary to transfer the certificate or
certificates evidencing such unvested Shares to the Company upon such Termination of Service.

     7. Withholding of Taxes. The Company (or the employing Affiliate) will withhold a
portion of the Shares that have an aggregate market value sufficient to pay federal, state and
local income, employment and any other applicable taxes required to be withheld by the Company or
the employing Affiliate with respect to the Shares, unless the Company, in its sole discretion,
requires the Employee to make alternate arrangements satisfactory to the Company for such
withholdings in advance of the arising of any withholding obligations. The number of Shares
withheld pursuant to the prior sentence will be rounded up to the nearest whole Share, with no
refund for any value of the Shares withheld in excess of the tax obligation as a result of such
rounding. Notwithstanding any contrary provision of this Agreement, no Shares will be issued
unless and until satisfactory arrangements (as determined by the Company) will have been made by
the Employee with respect to the payment of any income and other taxes which the Company determines
must be withheld or collected with respect to such Shares. In addition and to the maximum extent
permitted by law, the Company (or the employing Affiliate) has the right to retain without notice
from salary or other amounts payable to the Employee, cash having a sufficient value to satisfy any
tax withholding obligations that the Company determines cannot be satisfied through the withholding
of otherwise deliverable Shares. All income and other taxes related to the Restricted Stock award
and any Shares delivered in payment thereof are the sole responsibility of the Employee.

     8. Rights as Stockholder. Neither the Employee nor any person claiming under or
through the Employee will have any of the rights or privileges of a stockholder of the Company in
respect of any Shares deliverable hereunder unless and until such Shares will have been issued
(which may be in certificate or book entry form), recorded on the records of the Company or its
transfer agents or registrars, and delivered to the Employee or the Escrow Agent. Except as
provided in paragraph 10, after such issuance, recordation and delivery, the Employee will have all
the rights of a stockholder of the Company with respect to voting such Shares. Notwithstanding any
contrary provisions in this Agreement, any quarterly or other regular, periodic dividends (as
determined by the Company) paid on unvested Shares shall be forfeited by the Employee and
automatically returned to the Company. The Company shall be entitled to receive any dividends
and/or distributions on any Shares held by the Escrow Agent until such Shares have vested in the
manner set forth in paragraphs 3 through 5.

     9. No Effect on Employment. Subject to any employment contract with the Employee, the
terms of such employment will be determined from time to time by the Company, or the Affiliate
employing the Employee, as the case may be, and the Company, or the Affiliate employing the
Employee, as the case may be, will have the right, which is hereby expressly reserved, to terminate
or change the terms of the employment of the Employee at any time for any reason whatsoever, with
or without good cause. The transactions contemplated hereunder and the vesting schedule set forth
on the first page of this Agreement do not constitute an express or implied promise of continued
employment for any period of time. A leave of absence or an interruption in service (including an
interruption during military service) authorized or acknowledged by the Company or the Affiliate

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employing the Employee, as the case may be, shall not be deemed a Termination of Service for
the purposes of this Agreement.

     10. Changes in Shares. In the event that as a result of a stock or extraordinary cash
dividend, stock split, distribution, reclassification, recapitalization, combination of shares or
the adjustment in capital stock of the Company or otherwise, or as a result of a merger,
consolidation, spin-off or other corporate transaction or event, the Shares will be increased,
reduced or otherwise affected, and by virtue of any such event the Employee will in his or her
capacity as owner of unvested Shares which have been awarded to him or her (the “Prior Shares”) be
entitled to new or additional or different shares of stock, cash or other securities or property
(other than rights or warrants to purchase securities); such new or additional or different shares,
cash or securities or property will thereupon be considered to be unvested Restricted Stock and
will be subject to all of the conditions and restrictions that were applicable to the Prior Shares
pursuant to this Agreement and the Plan. If the Employee receives rights or warrants with respect
to any Prior Shares, such rights or warrants may be held or exercised by the Employee, provided
that until such exercise any such rights or warrants and after such exercise any shares or other
securities acquired by the exercise of such rights or warrants will be considered to be unvested
Restricted Stock and will be subject to all of the conditions and restrictions which were
applicable to the Prior Shares pursuant to the Plan and this Agreement. The Committee in its
absolute discretion at any time may accelerate the vesting of all or any portion of such new or
additional shares of Restricted Stock, cash or securities, rights or warrants to purchase
securities or shares or other securities acquired by the exercise of such rights or warrants.

     11. Address for Notices. Any notice to be given to the Company under the terms of
this Agreement will be addressed to the Company, in care of Stock Programs, at Applied Materials,
Inc., 2881 Scott Blvd., M/S 2023, P.O. Box 58039, Santa Clara, CA 95050, or at such other address
as the Company may hereafter designate in writing.

     12. Grant is Not Transferable. Except to the limited extent provided in this
Agreement, the unvested Shares subject to this grant and the rights and privileges conferred hereby
will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law
or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon
any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of any unvested Shares
subject to this grant, or any right or privilege conferred hereby, or upon any attempted sale under
any execution, attachment or similar process, this grant and the rights and privileges conferred
hereby immediately will become null and void.

     13. Restrictions on Sale of Securities. The Shares issued under this Agreement will
be registered under U. S. federal securities laws and will be freely tradable upon receipt
following vesting. However, an Employee’s subsequent sale of the Shares may be subject to any
market blackout-period that may be imposed by the Company and must comply with the Company’s
insider trading policies, and any other applicable securities laws.

     14. Binding Agreement. Subject to the limitation on the transferability of this grant
contained herein, this Agreement will be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto.

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     15. Additional Conditions to Release from Escrow. The Company shall not be required
to issue Shares hereunder (in certificate or book entry form) or release such Shares from the
escrow established pursuant to paragraph 2 prior to fulfillment of all the following conditions:
(a) the admission of such Shares to listing on all stock exchanges on which such class of stock is
then listed; (b) the completion of any registration or other qualification of such Shares under any
U. S. state or federal law or under the rulings or regulations of the Securities and Exchange
Commission or any other governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; (c) the obtaining of any approval or other clearance from
any U. S. state or federal governmental agency, which the Committee shall, in its absolute
discretion, determine to be necessary or advisable; and (d) the lapse of such reasonable period of
time following the date of grant of the Restricted Stock as the Committee may establish from time
to time for reasons of administrative convenience.

     16. Plan Governs. This Agreement is subject to all the terms and provisions of the
Plan. In the event of a conflict between one or more provisions of this Agreement and one or more
provisions of the Plan, the provisions of the Plan will govern. Capitalized terms used and not
defined in this Agreement will have the meaning set forth in the Plan.

     17. Committee Authority. The Committee will have the power to interpret the Plan and
this Agreement and to adopt such rules for the administration, interpretation and application of
the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not
limited to, the determination of whether or not any Shares have vested). All actions taken and all
interpretations and determinations made by the Committee in good faith will be final and binding
upon the Employee, the Company and all other interested persons. No member of the Committee will
be personally liable for any action, determination or interpretation made in good faith with
respect to the Plan or this Agreement.

     18. Captions. Captions provided herein are for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

     19. Agreement Severable. In the event that any provision in this Agreement will be
held invalid or unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining provisions of this
Agreement.

     20. Modifications to the Agreement. This Agreement constitutes the entire
understanding of the parties on the subjects covered. The Employee expressly warrants that he or
she is not accepting this Agreement in reliance on any promises, representations, or inducements
other than those contained herein. Modifications to this Agreement or the Plan can be made only in
an express written contract executed by a duly authorized officer of the Company.

     21. Amendment, Suspension or Termination of the Plan. By accepting this Restricted
Stock award, the Employee expressly warrants that he or she has received a Restricted Stock award
under the Plan, and has received, read and understood a description of the Plan. The Employee
understands that the Plan is discretionary in nature and may be amended, suspended or terminated by
the Company at any time.

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     22. Labor Law. By accepting this Restricted Stock award, the Employee acknowledges
that: (a) the grant of this Restricted Stock is a one-time benefit which does not create any
contractual or other right to receive future grants of Restricted Stock, or benefits in lieu of
Restricted Stock; (b) all determinations with respect to any future grants, including, but not
limited to, the times when the Restricted Stock shall be granted, the number of Shares subject to
each Restricted Stock award, the Purchase Price per Share, and the time or times when Restricted
Stock shall vest, will be at the sole discretion of the Company; (c) the Employee’s participation
in the Plan is voluntary; (d) the value of this Restricted Stock is an extraordinary item of
compensation which is outside the scope of the Employee’s employment contract, if any; (e) this
Restricted Stock is not part of the Employee’s normal or expected compensation for purposes of
calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments; (f) the vesting of this Restricted
Stock ceases upon termination of employment for any reason except as may otherwise be explicitly
provided in the Plan or this Agreement; (g) the future value of the underlying Shares is unknown
and cannot be predicted with certainty; (h) this Restricted Stock has been granted to the Employee
in the Employee’s status as an employee of the Company or its Affiliates; (i) any claims resulting
from this Restricted Stock shall be enforceable, if at all, against the Company; and (j) there
shall be no additional obligations for any Affiliate employing the Employee as a result of this
Restricted Stock.

     23. Disclosure of Employee Information. By accepting this Restricted Stock award, the
Employee consents to the collection, use and transfer of personal data as described in this
paragraph. The Employee understands that the Company and its Affiliates hold certain personal
information about him or her, including his or her name, home address and telephone number, date of
birth, social security or identity number, salary, nationality, job title, any shares of stock or
directorships held in the Company, details of all awards of Restricted Stock or any other
entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in his
or her favor, for the purpose of managing and administering the Plan (“Data”). The Employee further
understands that the Company and/or its Affiliates will transfer Data among themselves as necessary
for the purpose of implementation, administration and management of his or her participation in the
Plan, and that the Company and/or any of its Affiliates may each further transfer Data to any third
parties assisting the Company in the implementation, administration and management of the Plan. The
Employee understands that these recipients may be located in the European Economic Area, or
elsewhere, such as in the U.S. or Asia. The Employee authorizes the Company to receive, possess,
use, retain and transfer the Data in electronic or other form, for the purposes of implementing,
administering and managing his or her participation in the Plan, including any requisite transfer
to a broker or other third party with whom he or she may elect to deposit any Shares of stock
acquired from this award of Restricted Stock of such Data as may be required for the administration
of the Plan and/or the subsequent holding of Shares of stock on his or her behalf. The Employee
understands that he or she may, at any time, view the Data, require any necessary amendments to the
Data or withdraw the consent herein in writing by contacting the Human Resources Department and/or
the Stock Programs Administrator for his or her employer.

     24. Notice of Governing Law. This award of Restricted Stock shall be governed by, and
construed in accordance with, the laws of the State of California, U.S.A., without regard to
principles of conflict of laws.

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     25. Notice to Directors. If the Employee is a director or shadow director of a U.K.
Affiliate, the Employee agrees to notify the U.K. Affiliate in writing of his or her interest in
the Company and the number of Shares or rights to which the interest relates. The Employee agrees
to notify the U.K. Affiliate when Shares acquired under the Plan are sold. This disclosure
requirement also applies to any rights or Shares acquired by the Employee’s spouse or child (under
the age of 18).

     26. Private Offer. If the Employee is a resident in Ireland, this offering is part of
a private transaction; this is not an offer to the public.

o      O      o

9exv4w1

 

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”), dated as of May 17, 2007, is
made by and between Arthur Steinberg, solely in his capacity as receiver (the “Receiver”)
for Wood River Capital Management, L.L.C., Wood River Associates, L.L.C., Wood River Partners, L.P.
and Wood River Partners Offshore, Ltd. (the “Wood River Entities”), and Endwave Corporation
(the “Company”).

RECITALS

     WHEREAS, the Company and the Receiver have entered into a Settlement Agreement, dated as of
May 17, 2007 (the “Settlement Agreement”);

     WHEREAS, pursuant to the terms of the Settlement Agreement, the Company has agreed to enter
into a registration rights agreement with respect to certain shares of Common Stock, par value
$0.001 per share, of the Company (“Common Stock”) held by the Wood River Entities;

AGREEMENTS

     NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements contained
herein and in the Settlement Agreement, and intending to be legally bound hereby, the parties
hereto hereby agree as follows:

Article I.

Definitions

     For purposes of this Agreement, the following terms have the following meanings:

     “Agreement” has the meaning given to that term in the introductory paragraph hereof.

     “Anniversary Date” means the date one year following the date on which the Shelf
Registration Statement becomes effective.

     “Approval Order” means the order of the Court granting the Receiver’s application to
approve the Settlement Agreement and related relief (Docket No. 05-CV-8713 (NRB)) or such other
order or orders of the Court that approves this Agreement.

     “Business Day” means any day, other than a Saturday or Sunday, on which national
banking institutions in New York, New York, are open.

     “Common Stock” has the meaning given to that term in the recitals hereto.

     “Company” has the meaning given to that term in the introductory paragraph hereof.

     “Court” means the United States District Court for the Southern District of New York
having jurisdiction over the SEC Action.

 

 

     “Effective Date” means each effective date or deemed effective date under the
Securities Act of the Shelf Registration Statement or any post-effective amendment thereto.

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

     “Extension Period” means a period, not to exceed 90 days, during which, in accordance
with Article IV hereof, the Company is not required to effect the filing of the Shelf
Registration Statement or is entitled to postpone the preparation, filing or effectiveness or
suspend the effectiveness of the Shelf Registration Statement or the consummation of an
Underwritten Offering or Registered Direct Offering.

     “Free Writing Prospectus” means a free writing prospectus as defined in Rule 405 under
the Securities Act.

     “Issuer Free Writing Prospectus” means an issuer free writing prospectus as defined in
Rule 433(h) under the Securities Act.

     “Lock-Up” has the meaning given to that term in Section 3.3(c) of this
Agreement.

     “Lock-Up Period” has the meaning given to that term in Section 3.3(c) of this
Agreement.

     “Minimum Number” means a number of shares of WR Common Stock to be sold such that,
after giving effect to such sale, the Wood River Entities would beneficially hold in the aggregate
less than 10% of the then-outstanding Common Stock.

     “NASD” has the meaning given to that term in Section 5.1(l) of this Agreement.

     “NASDAQ” means the NASDAQ Global Market.

     “Other Stockholders” means any Person (other than the Receiver or the Wood River
Entities) having rights to demand or participate in a registration of Common Stock of the Company.

     “Person” means any individual, corporation, general or limited partnership, limited
liability company, joint venture, trust or other entity or association, including without
limitation any governmental authority.

     “Prospectus” means the prospectus relating to the proposed resale of WR Common Stock
included in the Shelf Registration Statement, and any such prospectus as supplemented by any and
all prospectus supplements and as amended by any and all amendments (including post-effective
amendments) and including all material incorporated by reference or deemed to be incorporated by
reference in such Prospectus.

     “Receiver” has the meaning given to that term in the introductory paragraph hereof.

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     “Registered Direct Offering” means an offering pursuant to the Shelf Registration
Statement in which shares of WR Common Stock are sold in a negotiated trade in which one or more
investment banking firms engaged for such purpose will attempt to sell the shares of WR Common
Stock as agent but may position and resell a portion of the block as principal to facilitate the
transaction.

     “Registration Expenses” has the meaning given to that term in Section 5.3(a)
of this Agreement.

     “Required Period” means, with respect to the Shelf Registration Statement, the period
beginning on date on which the Shelf Registration Statement becomes effective and ending on the
earlier of (a) the Anniversary Date, as such period may be extended pursuant to Section
3.2(b), Article IV or Section 5.2 and (b) the date on which the Wood River
Entities have sold at least the Minimum Number of shares of WR Common Stock.

     “Rule 144” means Rule 144 promulgated under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     “SEC” means the United States Securities and Exchange Commission and any successor
United States federal agency or governmental authority having similar powers.

     “SEC Action” means the action captioned Securities and Exchange Commission v. Wood
River Capital Management, L.L.C., et al., Civ. Action No. 05-CV-8713 (NRB), filed by the SEC
against the Wood River Entities and John Hunting Whittier in the Court.

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

     “Settlement Agreement” has the meaning given to that term in the recitals hereto.

     “Shelf Registration Statement” means a shelf registration statement on Form S-3 to be
filed by the Company pursuant to Rule 415 of the Securities Act relating to the offering and sale
of shares of WR Common Stock pursuant to Article III hereof, including the related
Prospectus, all amendments and supplements to such registration statement (including post-effective
amendments), and all exhibits and all materials incorporated by reference or deemed to be
incorporated by reference in such registration statement.

     “Underwritten Offering” means an offering pursuant to the Shelf Registration Statement
in which shares of WR Common Stock are sold to one or more underwriters for reoffering to the
public.

     “Wood River Entities” has the meaning given to that term in the introductory paragraph
hereof.

     “WR Common Stock” means the shares of Common Stock that are held by the Wood River
Entities and any additional shares of Common Stock received by the Wood River Entities by way of a
stock dividend, stock split or distribution, or in connection with a combination of shares,
recapitalization, reorganization, merger or consolidation, or otherwise.

3

 

Article II.

Representations and Warranties of the Parties

     2.1 Representations and Warranties of the Company. The Company represents and
warrants to, and agrees with, the Receiver as set forth below, as of the date hereof and as of each
Effective Date:

          (a) Incorporation and Qualification. The Company has been duly organized and is
validly existing and in good standing under the laws of the State of Delaware, with the requisite
power and authority to own its properties and conduct its business as currently conducted.

          (b) Corporate Power and Authority. The Company has the requisite corporate power and
authority to enter into, execute and deliver this Agreement and to perform its obligations
hereunder. The Company has taken all necessary corporate action required for the due
authorization, execution and delivery of this Agreement and the Company’s performance of its
obligations hereunder through and up to such Effective Date.

          (c) Execution and Delivery; Enforceability. This Agreement has been duly and validly
executed and delivered by the Company, and constitutes the valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms.

          (d) No Conflict. The execution and delivery by the Company of this Agreement and
compliance by the Company with all of the provisions hereof and the consummation of the
transactions contemplated herein will not (i) conflict with or result in a breach or violation of,
any of the terms or provisions of, or constitute a default under (with or without notice or lapse
of time, or both), or result in the acceleration of, or the creation of any lien under, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the
Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is
bound or to which any of the property or assets of the Company or any of its subsidiaries is
subject, or (ii) violate the Certificate of Incorporation or Bylaws of the Company.

          (e) Eligibility. To the Company’s knowledge, the Company is eligible under the
Securities Act and applicable regulations to use Form S-3 for the Shelf Registration Statement.

     2.2 Representations and Warranties of the Receiver. The Receiver represents and
warrants to, and agrees with, the Company as set forth below, as of the date hereof and as of each
Effective Date:

          (a) Power and Authority. The Receiver has the requisite power and authority to enter
into, execute and deliver this Agreement on his own behalf and on behalf of the Wood River
Entities, to perform his obligations hereunder and to cause the Wood River Entities to perform
their obligations hereunder. The Wood River Entities have taken all necessary corporate,
partnership or limited liability company action required for the Receiver’s due authorization,
execution and delivery of this Agreement and the Receiver’s and the Wood River Entities’
performance of their obligations hereunder through and up to such Effective Date.

4

 

          (b) Execution and Delivery; Enforceability. This Agreement has been duly and validly
executed and delivered by the Receiver, and constitutes the valid and binding obligation of the
Receiver and the Wood River Entities, enforceable against the Receiver and the Wood River Entities
in accordance with its terms.

          (c) No Conflict. The execution and delivery by the Receiver of this Agreement and
compliance by the Receiver and the Wood River Entities with all of the provisions hereof and the
consummation of the transactions contemplated herein will not (i) conflict with or result in a
breach or violation of, any of the terms or provisions of, or constitute a default under (with or
without notice or lapse of time, or both), or result in the acceleration of, or the creation of any
lien under, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument
to which the Receiver or any of the Wood River Entities is a party or by which the Receiver or any
of the Wood River Entities is bound or to which any of the property or assets of any of the Wood
River Entities is subject, or (ii) violate the charter documents, partnership agreement or
operating agreement of any of the Wood River Entities or any similar document governing any of the
Wood River Entities.

Article III.

Shelf Registration

     3.1 Shelf Registration Statement. Subject to the terms and conditions set forth in
this Agreement, the Company shall use its reasonable best efforts to cause the Shelf Registration
Statement to be filed with the SEC as promptly as practicable after the date hereof and use its
reasonable best efforts to cause it to be declared effective by the SEC as promptly as practicable
thereafter. The Company shall include in the Shelf Registration Statement a plan of distribution
that includes possible distribution under an Underwritten Offering, a Registered Direct Offering
and such other method of sale or distribution as is reasonably requested by the Receiver and not
otherwise prohibited by this Agreement.

     3.2 Continuous Effectiveness of Shelf Registration Statement.

          (a) The Company shall use its reasonable best efforts, and take all steps reasonably requested
by the Receiver or any underwriters or placement agents selected pursuant to Section 3.3,
to cause the Shelf Registration Statement to remain continuously effective, and not subject to any
stop order, injunction or other similar order or requirement of the SEC, including the filing of
any required amendments or supplements, until the expiration of the Required Period; provided,
however, that if the Receiver has requested an Underwritten Offering or a Registered Direct
Offering prior to the Anniversary Date, the Company shall cause the Shelf Registration Statement to
remain continuously effective until such Underwritten Offering or Registered Direct Offering has
been fully consummated; and provided further, however, that in no event shall such period of
effectiveness expire prior to the expiration of the applicable period referred to in Section 4(3)
of the Securities Act and Rule 174 promulgated thereunder.

          (b) In the event of any stop order, injunction or other similar order or requirement of the
SEC relating to the Shelf Registration Statement, the Required Period for such Shelf Registration
Statement shall be extended by the number of days during which such stop order, injunction or
similar order or requirement is in effect.

5

 

     3.3 Underwritten or Registered Direct Offering.

          (a) In the event that the Receiver desires to engage in an Underwritten Offering or Registered
Direct Offering, (i) the Receiver shall give written notice thereof to the Company, (ii) the
Receiver shall with the consent of the Company (which consent shall not be unreasonably withheld)
select an investment banking firm of national standing to be an underwriter or placement agent for
the Underwritten Offering or Registered Direct Offering and (iii) the Company shall with the
consent of the Receiver (which consent shall not be unreasonably withheld) select one or more
investment banking firms of national standing to be an underwriter or underwriters or placement
agent or agents for the Underwritten Offering or Registered Direct Offering as the case may be.
Unless otherwise agreed to by the Receiver and the Company, the investment bank selected by the
Receiver shall receive 50% of the aggregate underwriting commissions or placement fees from the
Underwritten Offering or Registered Direct Offering, and the investment bank or investment banks
selected by the Company shall receive, in the aggregate, 50% of the aggregate underwriting
commissions or placement fees from the Underwritten Offering or Registered Direct Offering. Unless
otherwise agreed to by the Receiver and the Company, the underwriter or placement agent chosen by
the Receiver on the one hand and the Company on the other shall be joint bookrunners for the
Underwritten Offering or Registered Direct Offering, with the underwriter or placement agent chosen
by the Receiver to have 50% of the decision-making authority among the joint bookrunners.

          (b) If so requested by the underwriters for an Underwritten Offering or placement agents for a
Registered Direct Offering, the Company, shall (i) not effect any underwritten public sale or
distribution or registered direct offering, of any securities for its own account or the account of
any Person not a party hereto that are the same as, or similar to, the WR Common Stock, or any
securities convertible into, or exchangeable or exercisable for, any securities of the Company that
are the same as, or similar to, the WR Common Stock, during a period (the “Lock-Up
Period”) beginning on the date of the initial due diligence or drafting session held pursuant
to Section 5.1(i) in connection with such Underwritten Offering or Registered Direct
Offering and ending not later than 90 days after the date of closing of the Underwritten Offering
or Registered Direct Offering, provided, however, that if (1) during the last 17 days of the
Lock-Up Period, the Company releases earnings results or announces material news or a material
event or (2) prior to the expiration of the Lock-Up Period, the Company announces that it will
release earnings results during the 15-day period following the last day of the Lock-Up Period,
then pursuant to Rule 2711(f)(4) of the NASD the Lock-Up Period will be automatically extended
until the expiration of the 18-day period beginning on the date of release of the earnings results
or the announcement of the material news or material event, as applicable and (ii) use its
reasonable best efforts to cause its executive officers and directors and any beneficial owners of
more than 10% of the issued and outstanding Common Stock to enter into a Lock-Up similar to that
described in Section 3.3(c).

          (c) If so requested by the underwriters for any Underwritten Offering or the placement agents
for any Registered Direct Offering, the Receiver on behalf of the Wood River Entities, shall agree
with such underwriters (such agreement, a “Lock-Up”), that during the Lock-Up Period the
Wood River Entities shall not sell or otherwise transfer or dispose of any shares of WR Common
Stock, provided, however, that if (1) during the last 17 days of the Lock-Up Period, the Company
releases earnings results or announces material news or a material event

6

 

or (2) prior to the expiration of the Lock-Up Period, the Company announces that it will
release earnings results during the 15-day period following the last day of the Lock-Up Period,
then pursuant to Rule 2711(f)(4) of the NASD the Lock-Up Period will be automatically extended
until the expiration of the 18-day period beginning on the date of release of the earnings results
or the announcement of the material news or material event, as applicable.

          (d) The Receiver shall use his reasonable best efforts to take all actions reasonably
requested by the Company and the underwriters for any Underwritten Offering or the placement agents
for any Registered Direct Offering to effectuate such offering. The Receiver shall furnish to the
Company such information regarding itself, the Wood River Entities and the WR Common Stock as shall
be required or reasonably requested to effect the registration of the WR Common Stock, provided,
however, that the Receiver and the Wood River Entities shall not be required to consummate any
Underwritten Offering or Registered Direct Offering if the pricing under such Underwritten Offering
or Registered Direct Offering would be unacceptable to the Receiver, in the Receiver’s sole
discretion. The Receiver, on his own behalf and that of the Wood River Entities, shall enter into
and comply with an underwriting agreement or placement agency agreement, in usual and customary
form, with the underwriters or placement agents in connection with such Underwritten Offering or
Registered Direct Offering (provided, however, that in no event shall the Receiver or the Wood
River Entities be obligated to enter into an underwriting or placement agency agreement that
requires either the Receiver or the Wood River Entities to indemnify the Company).

     3.4 Number of Offerings. Notwithstanding anything contained in this Article
III to the contrary, the Receiver on behalf of the Wood River Entities shall be entitled to
request only one offering hereunder, which may be either an Underwritten Offering or a Registered
Direct Offering. For purposes hereof, neither an Underwritten Offering nor a Registered Direct
Offering shall be considered consummated until at least the Minimum Number of shares of WR Common
Stock have been sold pursuant to such Underwritten Offering or Registered Direct Offering or
otherwise.

     3.5 Termination. In the event that any person other than the Company, the Receiver or
any of the Wood River Entities appeals the Approval Order and the Approval Order is reversed or
vacated, then this Agreement shall terminate in all respects. If the Approval Order is entered by
the Court but its effectiveness is thereafter stayed by a court of competent jurisdiction (a
“Stay”), then the effectiveness of this Agreement and the Parties’ obligations hereunder shall be
stayed until such Stay is vacated.

Article IV.

Extension Period

     4.1 Offering Extension Period. Notwithstanding any other provision of this Agreement
to the contrary, if the Board of Directors of the Company determines in good faith that the
registration and distribution of WR Common Stock would materially impede, delay or interfere with,
or require premature disclosure of, any material acquisition, merger, corporate reorganization, or
any negotiations, discussions or pending proposals with respect thereto involving the Company or
any of its subsidiaries, then subject to Section 4.2, the Company shall be entitled to
postpone or suspend the preparation, filing or effectiveness, of the Shelf

7

 

Registration Statement and/or the use of any Prospectus with respect to an Underwritten
Offering or a Registered Direct Offering for a period not to exceed 90 days from the date of
receipt of such written request from the Receiver, provided, however, that such request may be
exercised by the Company no more than once.

     4.2 Extension Period Certificate. The Company’s right to an Extension Period pursuant
to Section 4.1 is subject to the receipt by the Receiver of a certificate signed by the
Chief Executive Officer of the Company certifying that the Board of Directors of the Company has
made the determination referred to in Section 4.1.

     4.3 Extension Period Limits. Notwithstanding anything contained in this Article
IV to the contrary, the Company shall not be entitled to more than one Extension Period and in
no event shall the Company be entitled to postpone or suspend the preparation, filing or
effectiveness or suspend the effectiveness of the Shelf Registration Statement and/or the use of
any resale Prospectus included in the Shelf Registration Statement pursuant to this Article
IV unless it postpones or suspends during the Extension Period the effectiveness of any
registration statements required pursuant to the registration rights of the Other Stockholders. In
the event of the occurrence of any Extension Period during the Required Period, the Required Period
shall be extended by the number of days during which such Extension Period is in effect.

Article V.

Procedures and Expenses

     5.1 Registration Procedures. In connection with the Company’s registration
obligations pursuant to Article III, the Company shall use its reasonable best efforts to
take such actions as are necessary or appropriate to permit the sale of the WR Common Stock by the
Wood River Entities in accordance with plan of distribution set forth in the Shelf Registration
Statement, and pursuant thereto the Company shall use its reasonable best efforts to, as promptly
as reasonably practicable:

          (a) prepare and file with the SEC the Shelf Registration Statement; provided, however, that
the Company shall (i) furnish to the Receiver and one firm of legal counsel selected by the
Receiver, a sufficient time prior to the filing thereof with the SEC to afford to the Receiver and
his counsel a reasonable opportunity for review, copies of the Shelf Registration Statement
proposed to be filed, and (ii) reflect in the Shelf Registration Statement, when so filed with the
SEC, such comments as the Receiver and its counsel may reasonably propose;

          (b) after the Receiver shall have requested an Underwritten or Registered Direct Offering in
compliance with Section 3.3 and the underwriters or placement agents therefor have been
selected in accordance with said Section, prepare and file with the SEC the Prospectus; provided,
however, that the Company shall (i) furnish to the Receiver and one firm of legal counsel selected
by the Receiver, and to the underwriters or placement agents selected pursuant to Section
3.3 and one firm of legal counsel selected by them, a sufficient time prior to the filing
thereof with the SEC to afford to the Receiver, the underwriters or placement agents and their
respective counsel a reasonable opportunity for review, copies of the Prospectus proposed to be
filed, and (ii) reflect in the Prospectus, when so filed with the SEC, such

8

 

comments as the Receiver, such underwriter or placement agents and their respective counsel
may reasonably propose;

          (c) furnish to the Receiver and the underwriters or placement agents such number of conformed
copies of the Shelf Registration Statement and each amendment thereto, of the Prospectus and each
supplement thereto, and of such other documents as they reasonably may request in writing from time
to time;

          (d) subject to Section 3.2 and Article IV, prepare and file with the SEC any
amendments and post-effective amendments to the Shelf Registration Statement as may be necessary
and any supplements to the Prospectus as may be required or appropriate, in the view of the Company
and its counsel, by the rules, regulations or instructions applicable to the Shelf Registration
Statement or by the Securities Act to keep the Shelf Registration Statement effective until the
termination of the Required Period (giving effect to any extensions thereof pursuant to Section
3.2(b), Section 4.3 or Section 5.2);

          (e) promptly following its gaining actual knowledge thereof (but in any event within two
Business Days), notify the Receiver and (if selected) the underwriters or placement agents, in
writing:

               (i) when a Shelf Registration Statement, Prospectus, Issuer Free Writing Prospectus or any
supplement or amendment has been filed and, with respect to a Shelf Registration Statement or any
post-effective amendment, when the same has become effective;

               (ii) of any request by the SEC or any other governmental authority for amendments or
supplements to a Shelf Registration Statement, Prospectus or Issuer Free Writing Prospectus or for
additional information;

               (iii) of the issuance by the SEC or any other governmental authority of any stop order
suspending the effectiveness of the Shelf Registration Statement or the initiation of any
proceedings for that purpose;

               (iv) of the receipt by the Company of any written notification with respect to the suspension
of the qualification or exemption from qualification of the WR Common Stock for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose;

               (v) of the occurrence of any event during the period the Shelf Registration Statement is
effective that makes any statement made in the Shelf Registration Statement or the Prospectus or
any Issuer Free Writing Prospectus untrue in any material respect or that requires the making of
any changes in such Shelf Registration Statement, Prospectus or Issuer Free Writing Prospectus so
that such Shelf Registration Statement, Prospectus or Issuer Free Writing Prospectus shall not
contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading (provided, however, that no notice by the Company shall
be required pursuant to this Section 5.1(e)(v) in the event that the Company either
promptly files a Prospectus supplement to update the Prospectus or an appropriate Exchange Act
report that is incorporated by reference into the Shelf

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Registration Statement, that, in either case, contains the requisite information that results
in the Shelf Registration Statement no longer containing any untrue statement of a material fact or
omitting to state a material fact necessary to make the statements therein or in light of the
circumstances under which they were made, not misleading); and

               (vi) of the Company’s reasonable determination that a post-effective amendment to the Shelf
Registration Statement would be required by applicable law (in which case the Company shall file
the same as soon as practicable after such determination and use its reasonable best efforts to
cause the same to become effective as soon as practicable following filing);

          (f) prevent the issuance of or obtain the withdrawal of any order suspending the effectiveness
of the Shelf Registration Statement, or the lifting of any suspension of the qualification or
exemption from qualification of any shares of the WR Common Stock for sale in any jurisdiction, at
the earliest practicable date or, if any such order or suspension is made effective during any
Extension Period, at the earliest practicable date after the Extension Period;

          (g) prior to any Underwritten Offering or Registered Direct Offering, use reasonable efforts
to register or qualify, or cooperate with the Receiver, the underwriters or placement agents, if
any, and their respective counsel in connection with the registration or qualification (or
exemption from such registration or qualification) of the WR Common Stock for offer and sale under
the securities or blue sky laws of such jurisdictions within the United States as such counsel for
the Receiver or the underwriters or placement agents reasonably requests in writing and do such
other acts and things as may be reasonably necessary to maintain each such registration or
qualification (or exemption therefrom) effective during the Required Period for the Shelf
Registration Statement; provided, however, that the Company shall not be required to qualify
generally to do business or as a dealer in securities in any jurisdiction in which it is not then
so qualified or take any action which would subject it to general service of process or taxation in
any jurisdiction in which it is not then so subject;

          (h) subject to Article IV, as promptly as reasonably practicable after the occurrence
of any event contemplated by Sections 5.1(e)(v) or 5.1(e)(vi) hereof, use its
reasonable best efforts to prepare (and furnish, subject to any notice by the Company in accordance
with Section 5.1(e), to the Receiver on behalf of the Wood River Entities a reasonable
number of copies of) a supplement or post-effective amendment to the Shelf Registration Statement
or a supplement to the related Prospectus (including by means of an Issuer Free Writing
Prospectus), or file any other required document so that, as thereafter delivered to the purchasers
of the WR Common Stock being sold thereunder, such Prospectus or Issuer Free Writing Prospectus
shall not contain an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;

               (i) enter into and comply with an underwriting agreement or placement agency agreement, in
usual and customary form, with the underwriters or placement agents, in connection with such
Underwritten Offering or Registered Direct Offering (provided, however, that in no event shall the
Company be obligated to enter into an underwriting or

10

 

placement agency agreement that requires the Company to indemnify the Receiver or the Wood
River Entities;

          (i) after the Receiver shall have requested an Underwritten Offering or a Registered Direct
Offering in accordance with Section 3.3, upon reasonable notice and at reasonable times
during normal business hours, make reasonably available for inspection by a representative of the
Receiver, one firm of counsel for the Receiver, the underwriters or placement agents, as
applicable, if any, participating in any Underwritten Offering or Registered Direct Offering and
their legal counsel and any single accounting firm retained by the Receiver or any such underwriter
or placement agent, all financial and other records, pertinent corporate documents and properties
of the Company, and cause the appropriate officers, directors and employees of the Company (x) to
make reasonably available for such inspection all such relevant information reasonably requested by
them in connection with the Underwritten Offering or Registered Direct Offering as is customary for
“due diligence” investigations for an Underwritten Offering or a Registered Direct Offering, as
applicable, and (y) to participate with such underwriters or placement agents, the Receiver, and
their respective legal counsel and accountants in such due diligence and drafting sessions as are
customary for such Underwritten Offering or Registered Direct Offering, as applicable; provided,
however, that prior to providing any such information or materials, the Company and the Receiver
shall have entered into a confidentiality agreement in a form reasonably acceptable to each of
them;

          (j) comply with all applicable rules and regulations of the SEC relating to such registration
and make generally available to its securityholders earning statements satisfying the provisions of
Section 11(a) of the Securities Act, provided that the Company shall be deemed to have complied
with this Section 5.1(j) if it has satisfied the provisions of Rule 158 under the
Securities Act (or any similar rule promulgated under the Securities Act);

          (k) procure the cooperation of the Company’s transfer agent in settling the sale of WR Common
Stock in the Underwritten Offering or Registered Direct Offering;

          (l) provide such information as may be reasonably required for any filings required to be made
by the Receiver, the Wood River Entities or underwriters or placement agents, if any, with the
National Association of Securities Dealers, Inc. (the “NASD”) in connection with the
offering under the Shelf Registration Statement of the WR Common Stock (including, without
limitation, such as may be required by NASD Rule 2710 or 2720), and, shall use reasonable best
efforts to cooperate in connection with any filings required to be made with the NASD in that
regard on or prior to the filing of the Shelf Registration Statement; and

          (m) assist the underwriters or placement agents, as applicable, in the marketing of the WR
Common Stock in connection with an Underwritten Offering or Registered Direct Offering, as
applicable, including without limitation, causing appropriate officers of the Company to attend
“road shows” and analyst or investor presentations and such other selling or informational
activities reasonably requested by the underwriters or placement agents and customary for an
Underwritten Offering or a Registered Direct Offering, as applicable; provided, however, that the
Company’s obligations to cause its officers to attend “road shows” shall be limited to
presentations in the United States and further limited, (i) in the case of an Underwritten
Offering, to a road show with a duration of two weeks, and (ii) in the case of a

11

 

Registered Direct Offering, to a road show with a duration of one week, in each case plus such
additional number of days as may be reasonably requested by the underwriters or placement agents.

     5.2 Suspension of Disposition.

          (a) The Receiver agrees that, upon receipt of any written notice from the Company of the
occurrence of any event of the type described in Sections 5.1(e)(ii), 5.1(e)(iii),
5.1(e)(iv), 5.1(e)(v) or 5.1(e)(vi), the Receiver and the Wood River
Entities shall discontinue disposition of the shares of WR Common Stock covered by a Shelf
Registration Statement, Prospectus or Free Writing Prospectus and suspend use of such Prospectus or
Free Writing Prospectus until the Receiver receives copies of the supplemented or amended
Prospectus contemplated by Section 5.1(h) or until is advised by the Company in writing
that the use of the applicable Prospectus or Free Writing Prospectus may be resumed and have
received copies of any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus or Free Writing Prospectus. In the event the Company
shall give any such notice, the period of time for which the Shelf Registration Statement must
remain effective pursuant to this Agreement shall be extended by the number of days during the time
period from and including the date of the giving of such notice to and including the date when the
Receiver has received (i) the copies of the supplemented or amended Prospectus or Issuer Free
Writing Prospectus contemplated by Section 5.1(h) or (ii) the advice referenced in this
Section 5.2(b).

          (b) The Receiver agrees that, upon receipt of the certificate from the chief executive officer
of the Company contemplated by Section 4.2, the Wood River Entities shall discontinue
disposition of the shares of WR Common Stock covered by a Shelf Registration Statement, Prospectus
or Free Writing Prospectus and suspend use of such Prospectus or Free Writing Prospectus until the
earlier to occur of the Receiver’s receipt of (i) copies of a supplemented or amended Prospectus or
Issuer Free Writing Prospectus and (ii)(A) written notice from the Company that the use of the
applicable Prospectus or Issuer Free Writing Prospectus may be resumed and (B) copies of any
additional or supplemental filings that are incorporated or deemed to be incorporated by reference
in such Prospectus or Issuer Free Writing Prospectus. In the event the Company gives any such
certificate contemplated by Section 4.2, the period of time for which the Shelf
Registration Statement must remain effective pursuant to this Agreement shall be extended by the
number of days during the time period from and including the date of giving of such notice to and
including the date when the Receiver receives (i) the supplemented or amended Prospectus or Issuer
Free Writing Prospectus or (ii) written notice from the Company that use of the applicable
Prospectus or Issuer Free Writing Prospectus may resume.

     5.3 Registration Expenses.

          (a) Subject to Section 5.3(c), all out-of-pocket fees and expenses incurred by the
Company in complying with Article III and Section 5.1 (“Registration
Expenses”) shall be borne by the Wood River Entities. These fees and expenses shall include
without limitation (i) all registration, filing and qualification fees, including fees for filings
made with the SEC, NASDAQ and NASD, (ii) documented printing, duplicating and delivery expenses,

12

 

(iii) reasonable and documented fees and disbursements of one counsel for the Company (plus
any other counsel of the Company from whom the underwriters or placement agents request “due
diligence” materials or information or a legal opinion in connection with the offering), (iv) fees
and expenses of complying with state securities or “blue sky” laws, (v) reasonable and documented
fees and expenses of the independent certified public accountants of the Company pertaining
specifically to the offering (including fees and expenses relating to any special audit or
“comfort” letters required by or incident to the offering); (vi) fees and expenses in connection
with quoting WR Common Stock on the NASDAQ or any other exchange or automated trading system on
which the Company’s Common Stock shall be listed or quoted, and (vii) documented “road show”
expenses. The Registration Expenses may be paid (a) in cash or (b) if mutually agreed by Endwave
and the Receiver, in WR Common Stock or a combination of cash and WR Common Stock; provided,
however, that in the event the Company commences a Registered Direct Offering or an Underwritten
Offering pursuant to this Agreement but the Receiver subsequently terminates such offering, the
Registration Expenses may be paid, at the Receiver’s discretion, by returning to the Company such
number of WR Common Stock as is obtained by dividing the Registration Expenses by the average
closing price of Endwave common stock over the 20 trading days ending immediately prior to the date
the Receiver notifies Endwave of his intent to terminate the offering.

          (b) The obligations of the Wood River Entities to pay the amounts described in Section
5.3(a) are subject to the following caps: (i) in the case of an Underwritten Offering,
$750,000.00, (ii) in the case of a Registered Direct Offering, $550,000.00.

          (c) Notwithstanding anything contained herein to the contrary, all underwriting and placement
agent fees, discounts, selling commissions and stock transfer taxes applicable to the sale of the
WR Common Stock shall be borne by the Wood River Entities.

     5.4 Withdrawal of Offering. If the Receiver gives written notice pursuant to
Section 3.3(a) that the Receiver wishes to engage in a Registered Direct Offering or
Underwritten Offering, and subsequently determines that he wishes to terminate such offering, he
shall promptly request in writing that the Company terminate its efforts with respect to such
Registered Direct Offering or Underwritten Offering, and the Receiver shall pay to the Company
within 10 days of written request from the Company, the Registration Expenses accrued prior to such
written request in accordance with the “provided, however” clause of Section 5.3.

Article VI.

Free Writing Prospectuses

     Except for a Prospectus, an Issuer Free Writing Prospectus or other materials prepared by the
Company, the Receiver represents and agrees that it (i) shall not make any offer relating to the WR
Common Stock that would constitute an Issuer Free Writing Prospectus or that would otherwise
constitute a Free Writing Prospectus, and (ii) has not distributed and will not distribute any
written materials in connection with the offer or sale of WR Common Stock, in each case without the
prior written consent of the Company and, in connection with any Underwritten Offering or
Registered Direct Offering, the underwriters or the placement agents, as the case may be. The
Company represents and agrees that it shall not make any offer relating to the WR Common Stock that
would constitute an Issuer Free Writing Prospectus or that would otherwise

13

 

constitute a Free Writing Prospectus in connection with the offer or sale of WR Common Stock
without the prior written consent of the Receiver, and, in connection with any Underwritten
Offering or Registered Direct Offering, the underwriters or the placement agents, as the case may
be.

Article VII.

Rule 144

     With a view to making available the benefits of certain rules and regulations of the SEC which
may permit the sale of WR Common Stock to the public without registration, the Company agrees to
(a) use its reasonable best efforts to file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act; (b) upon written
request of the Receiver, furnish to the Receiver promptly a written statement by the Company as to
its compliance with the reporting requirements of Rule 144 and of the Securities Act and the
Exchange Act, and such other reports and documents as the Receiver reasonably may request in
availing itself of any rule or regulation of the SEC allowing the Wood River Entities to sell any
shares of the WR Common Stock without registration; and (c) take such other actions as may be
reasonably required by the Company’s transfer agent to consummate any distribution of WR Common
Stock that may be permitted in accordance with the terms and conditions of Rule 144.

Article VIII.

Limits on Sale

     8.1 Limits on Sale. The Receiver and the Wood River Entities shall not sell,
distribute or otherwise dispose of any of the WR Common Stock until the consummation of an
Underwritten Offering or a Registered Direct Offering resulting in the sale of at least the Minimum
Number of shares of WR Common Stock; provided, however, that this restriction shall not apply to
public resales of WR Common Stock pursuant to Rule 144 under the Securities Exchange Act or to any
transfer by any Wood River Entity to another Wood River Entity. The Receiver shall comply with all
reporting requirements of the SEC with respect to any sale of WR Common Stock including, without
limitation, filing any reports or amendments to reports required under Sections 13 and 16 of the
Securities Exchange Act and will give a copy of each such report or amendment to the Company no
later than the date and time such report or amendment is filed with the SEC or is required to be
filed with the SEC, whichever comes first.

Article IX.

Miscellaneous

     9.1 Notices. All notices and other communications in connection with this Agreement
shall be in writing and shall be deemed given by (and shall be deemed to have been duly given) as
follows: (i) at the time delivered by hand, if delivered personally; (ii) when sent via facsimile
(with confirmation); (iii) five Business Days after being deposited in the mail, if sent postage
prepaid, by registered or certified mail (return receipt requested); or (iv) on the next Business
Day, if timely delivered to an express courier guaranteeing overnight delivery (with confirmation).
Notices shall be directed to the parties at the following addresses (or at such other address for
a party as shall be specified by like notice):

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          (a) If to the Company:

Endwave Corporation

130 Baytech Drive

San Jose, California 95134

Attn: Chief Financial Officer

Facsimile: (408) 522-3102

with a copy to:

Jodie M. Bourdet, Esq.

Cooley Godward Kronish LLP

101 California Street, 5th floor

San Francisco, California 94111

Facsimile: (415) 693-2222

          (b) If to the Receiver:

Arthur J. Steinberg, Esq.

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Facsimile: (212) 836-8689

with a copy to:

Phillip A. Geraci, Esq.

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Facsimile: (212) 836-8689

     9.2 Survival. The representations, warranties, covenants, and agreements made herein
shall survive any investigation made by the Receiver or the Company and the closing of the
transactions contemplated hereby.

     9.3 Severability. If any provision of this Agreement shall be invalid or
unenforceable, such invalidity or unenforceability shall not affect the validity and enforceability
of the remaining provisions of this Agreement.

     9.4 Successors and Assigns. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors, and administrators of the parties hereto.

     9.5 Entire Agreement. This Agreement (including the documents and instruments
referred to in this Agreement) constitutes the entire agreement of the parties and supersedes all
prior agreements and understandings, whether written or oral, between the parties with respect to
the subject matter of this Agreement.

15

 

     9.6 Waivers and Amendments. This Agreement may be amended, modified, superseded,
cancelled, renewed or extended, and the terms and conditions of this Agreement may be waived, only
by a written instrument signed by the Company and the Receiver or in the case of a waiver, by the
party waiving compliance. No delay on the part of any party in exercising any right, power or
privilege pursuant to this Agreement shall operate as a waiver thereof, nor shall any waiver on the
part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single
or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other
or further exercise thereof or the exercise of any other right, power or privilege pursuant to this
Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and are not
exclusive of any rights or remedies which any party otherwise may have at law or in equity.

     9.7 Counterparts. This Agreement may be executed in any number of counterparts, all
of which shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each of the parties and delivered to the other party (including
via facsimile or other electronic transmission), it being understood that each party need not sign
the same counterpart.

     9.8 Governing Law. This Agreement shall be governed in all respects by the laws of
the State of New York without giving effect to principles of conflicts of law that would result in
the application of the laws of a different jurisdiction.

     9.9 Headings. The headings in this Agreement are for reference purposes only and
shall not in any way affect the meaning or interpretation of this Agreement.

     9.10 Specific Performance. The parties acknowledge and agree that any breach of the
terms of this Agreement would give rise to irreparable harm for which money damages would not be an
adequate remedy, and, accordingly, the parties agree that, in addition to any other remedies, each
will be entitled to enforce the terms of this Agreement by a decree of specific performance without
the necessity of proving the inadequacy of money damages as a remedy and without the necessity of
posting bond.

     9.11 No Conflicting Rights. The Company shall not, on or after the date hereof, grant
any registration or similar rights to any Person which conflict with or impair the rights granted
hereby.

[Signature Page Follows]

16

 

     IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	ENDWAVE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Edward A. Keible	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Edward A. Keible	 	 
	 

	 	 	 	Title: President and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	ARTHUR J. STEINBERG, ESQ., solely in	 	 
	 	 	his capacity as the Receiver of Wood River	 	 
	 	 	Capital Management, L.L.C., Wood River	 	 
	 	 	Associates, L.L.C., Wood River Partners,	 	 
	 	 	L.P. and Wood River Partners Offshore,	 	 
	 	 	Ltd., and not in his individual capacity	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Arthur J. Steinberg	 	 
	 	 	 	 	 
	 	 	Arthur J. Steinberg	 	 
	 	 	Receiver

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