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EXHIBIT 10.54    
  

    $125,000,000  

 WIND RIVER SYSTEMS, INC.

3.75% CONVERTIBLE SUBORDINATED NOTES DUE DECEMBER 15, 2006  

  
 

    REGISTRATION RIGHTS AGREEMENT    
  

December 10,
2001 

CREDIT SUISSE FIRST BOSTON CORPORATION

UBS WARBURG LLC

THOMAS WEISEL PARTNERS LLC
 c/o CREDIT SUISSE FIRST BOSTON CORPORATION
 Eleven Madison Avenue

New York, NY 10010-3629 

Dear
Sirs: 

    Wind
River Systems, Inc., a Delaware corporation ("the Company"), proposes to issue and sell to you (the
"Initial Purchasers"), upon the terms set forth in a purchase agreement of even date herewith (the "Purchase
Agreement"), $125,000,000 aggregate principal amount (plus up to an additional $25,000,000 aggregate principal amount) of its 3.75% Convertible Subordinated Notes due
December 15, 2006 (the "Initial Securities"). The Initial Securities will be convertible into shares of common stock, par value $0.001 per share,
of the Company (the "Common Stock") at the conversion price set forth in the Offering Circular dated December 5, 2001. The Initial Securities
will be issued pursuant to an Indenture, dated as of December 10, 2001 (the "Indenture"), among the Company and Bankers Trust Company, as trustee
(the "Trustee"). As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Company agrees with the Initial Purchasers, for
the benefit of (i) the Initial Purchasers and (ii) the holders of the Initial Securities and the Common Stock issuable upon conversion of the Initial Securities (collectively, the
"Securities") from time to time until the expiration of the Shelf Registration Period (as defined in Section 1, below) (each of the forgoing a
"Holder" and collectively the "Holders"), as follows: 

    1.  Shelf Registration.  (a) The Company shall, at its cost, prepare and, as promptly as
practicable (but in no event more than 90 days after the first date of original issuance of the Initial Securities) file with the Securities and Exchange Commission (the
"Commission") and thereafter use commercially reasonable efforts to cause to be declared effective as soon as practicable a registration statement on
Form S-3, or such other appropriate form as the Company may be permitted to use (the "Shelf Registration Statement"), relating to the
offer and sale of the Transfer Restricted Securities (as defined in Section 5 hereof) by the Holders thereof from time to time in accordance with the methods of distribution set forth in the
Shelf Registration Statement and Rule 415 under the Securities Act of 1933, as amended (the "Securities Act") (hereinafter, the
"Shelf Registration"); provided, however, that no Holder (other than an Initial Purchasers) shall be
entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to such
Holder and has returned a properly completed and signed Selling Securityholder Notice and Questionnaire in the form of Annex A (a "Questionnaire") to
the Prospectus (as defined below) dated December 5, 2001 relating to the Initial Securities. 

    (b)
The Company shall use commercially reasonable efforts to keep the Shelf Registration Statement continuously effective in order to permit the prospectus included therein (the
"Prospectus") 

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to be lawfully delivered by the Holders of the relevant Securities, for a period of two years (or for such longer period if extended pursuant to Section 2(h) below) from the date of its
effectiveness or such shorter period that will terminate when all the Securities covered by the Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are no longer
restricted securities (as defined in Rule 144(k) under the Securities Act, or any successor rule thereof), assuming for this purpose that the Holders thereof are not affiliates of the Company
(in any such case, such period being called the "Shelf Registration Period"). The Company shall be deemed not to have used commercially reasonable
efforts to keep the Shelf Registration Statement effective during the requisite period if it voluntarily takes any action that would result in Holders of Securities covered thereby not being able to
offer and sell such Securities during that period, unless such action is (i) required by applicable law, or (ii) taken by the Company in good faith and contemplated by Sections
2(b)(v) or 5(b) below, and the Company thereafter complies with the requirements of Section 2(h) below. 

    (c)
Notwithstanding any other provisions of this Agreement to the contrary, the Company shall cause the Shelf Registration Statement and the Prospectus and any amendment or supplement
thereto, as of the effective date of the Shelf Registration Statement, amendment or supplement, (i) to comply in all material respects with the applicable requirements of the Securities Act and
the rules and regulations of the Commission and (ii) not to contain any untrue statement of a material fact or omit to state a 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. 

    2.  Registration Procedures.  In connection with the Shelf Registration contemplated by Section 1
hereof, the following provisions shall apply: 

    (a) The
Company shall (i) furnish to the Initial Purchasers, prior to the filing thereof with the Commission, a copy of the Shelf Registration Statement and each
amendment thereof and each supplement, if any, to the Prospectus included therein and, in the event that an Initial Purchaser (with respect to any portion of an unsold allotment from the original
offering) is participating in the Shelf Registration Statement, shall use commercially reasonable efforts to reflect in each such document, when so filed with the Commission, such comments as such
Initial Purchaser reasonably may propose; and (ii) include the names of the Holders who propose to sell Securities pursuant to the Shelf Registration Statement as selling securityholders;  provided that Holders shall have furnished to the Company on a timely basis such information regarding the Holder as the Company may require pursuant to
Section 2(l) hereof. Notwithstanding the foregoing, if a properly completed Questionnaire is received by the Company before 10 days prior to the effective date of the Shelf Registration
Statement or amendment thereto, such Holder shall be entitled to have its Securities included in the Shelf Registration Statement or such amendment at the effective date thereof. If the Company
receives such properly completed Questionnaire thereafter, the Securities covered by such Questionnaire will be included in the Shelf Registration Statement, and the Company shall file any amendments
to the Shelf Registration Statement or supplements related to the Prospectus to permit such Holder to deliver the Prospectus to purchasers of the Securities, as promptly as reasonably practicable
after receipt of such properly completed Questionnaire; provided that (a) the Company may take reasonable steps to aggregate the addition of Securities of more than one Holder for purposes of
filing amendments to the Shelf Registration Statement or supplements to the Prospectus so as to reduce the need for multiple amendments or supplements, and (b) the Company shall not be required
to file more than one amendment or supplement during any thirty-day period. 

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    (b) The Company shall give written notice to the Initial Purchasers and the Holders of the Securities (which notice pursuant to clauses (ii)-(v) hereof shall be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made): 

    (i)  when
the Shelf Registration Statement or any amendment thereto has been filed with the Commission and when the Shelf Registration Statement or any
post-effective amendment thereto has become effective; 

    (ii) of
any request by the Commission for amendments or supplements to the Shelf Registration Statement or the Prospectus or for additional information; 

    (iii) of
the issuance by the Commission 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 or its legal counsel of any notification with respect to the suspension of the qualification of the Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose; and 

    (v) of
the happening of any event that requires the Company to make changes in the Shelf Registration Statement or the Prospectus in order that the Shelf Registration
Statement or the Prospectus does not contain 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. 

    (c) The
Company shall use reasonable efforts to obtain the withdrawal, at the earliest possible time, of any order suspending the effectiveness of the Shelf
Registration Statement. 

    (d) The
Company shall furnish to each Holder of Securities included within the coverage of the Shelf Registration, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits thereto (including
those, if any, incorporated by reference). 

    (e) The
Company shall, during the Shelf Registration Period, deliver to each Holder of Securities included within the coverage of the Shelf Registration, without
charge, as many copies of the Prospectus included in the Shelf Registration Statement and any amendment or supplement thereto as such person may reasonably request. The Company consents, subject to
the provisions of this Agreement, to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of the Securities in connection with the offering and sale of the
Securities covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 

    (f)  Prior
to any public offering of the Securities pursuant to the Shelf Registration Statement, the Company shall register or qualify or cooperate with the Holders of
the Securities included therein and
their respective counsel in connection with the registration or qualification of the Securities for offer and sale under the securities or "blue sky" laws of such states of the United States as any
Holder of the Securities reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the offer and sale in such jurisdictions of the Securities covered by
such Registration Statement; provided, however, that the Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in any jurisdiction where it is not then so subject. 

    (g) The
Company shall cooperate with the Holders of the Securities to facilitate the timely preparation and delivery of certificates representing the Securities to be
sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as the Holders may request a reasonable period of time prior to sales
of the Securities pursuant to the Shelf Registration Statement. 

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    (h) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 2(b) above or Section 5(b) below during the
period for which the Company is required to maintain an effective Shelf Registration Statement, the Company shall promptly prepare and file a post-effective amendment to the Shelf
Registration Statement or an amendment or supplement to the Prospectus and any other required document (except, upon the occurrence of an event contemplated by Section 5(b) below, to the extent
that the Company determines in good faith that the disclosure of such event at such time would not be in the best interest of the Company) so that, as thereafter delivered to Holders or purchasers of
the Securities, the Prospectus will 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. If the Company notifies the Initial Purchasers and the Holders in accordance with paragraphs (ii) through (v) of
Section 2(b) above to suspend the use of the Prospectus until the requisite changes to the Prospectus have been made, then the Initial Purchasers and the Holders shall suspend use of such
Prospectus, and the period of effectiveness of the Shelf Registration Statement provided for in Section 1(b) above shall be extended by the number of days from and including the date of the
giving of such notice to and including the date when the Initial Purchasers and the Holders shall have received such amended or supplemented prospectus pursuant to this Section 2(h). 

    (i)  Not
later than the effective date of the Shelf Registration Statement, the Company will provide CUSIP numbers for the Initial Securities and the Common Stock
registered under the Shelf Registration Statement, and provide the Trustee with printed certificates for the Initial Securities, in a form eligible for deposit with The Depository Trust Company. 

    (j)  The
Company will use commercially reasonable efforts to comply with all rules and regulations of the Commission to the extent and so long as they are applicable to
the Shelf Registration and will make generally available to its security holders (or otherwise provide in accordance with Section 11(a) of the
Securities Act) an earnings statement satisfying the provisions of Section 11(a) of the Securities Act, no later than 45 days after the end of a 12-month period (or
90 days, if such period is a fiscal year) beginning with the first month of the Company's first fiscal quarter commencing after the effective date of the Shelf Registration Statement, which
statement shall cover such 12-month period. 

    (k) The
Company shall cause the Indenture to be qualified under the Trust Indenture Act of 1939, as amended, (the "Trust Indenture
Act") in a timely manner and containing such changes, if any, as shall be necessary for such qualification. In the event that such qualification would require the appointment
of a new trustee under the Indenture, the Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture. 

    (l)  The
Company may require each Holder of Securities to be sold pursuant to the Shelf Registration Statement to furnish to the Company such information, including a
properly completed and signed Questionnaire, regarding the Holder and the distribution of the Securities as the Company may from time to time reasonably require for inclusion in the Shelf Registration
Statement, and the Company may exclude from such registration the Securities of any Holder that fails to furnish such information within a reasonable time after receiving such request. 

    (m) The
Company shall enter into such customary agreements (including, if requested, an underwriting agreement in customary form) and take all such other appropriate
actions, if any, as any Holder shall reasonably request in order to facilitate the disposition of the Securities pursuant to the Shelf Registration. 

    (n) The
Company shall (i) make reasonably available for inspection by the Holders, any underwriter participating in any disposition pursuant to the Shelf
Registration Statement and any attorney, accountant or other agent retained by the Holders or any such underwriter, all relevant financial and other records, pertinent corporate documents and
properties of the Company (other than 

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records and documents that the Company agreed contractually not to disclose) and (ii) cause the Company's officers, directors, employees, accountants and auditors to supply all relevant
information (other than records and documents that the Company agreed contractually not to disclose) reasonably requested by the Holders or any such underwriter, attorney, accountant or agent in
connection with the Shelf Registration Statement, in each case, as shall be reasonably necessary to enable such persons to conduct a reasonable investigation within the meaning of Section 11 of
the Securities Act; provided, however, that the foregoing inspection and information gathering shall be coordinated on behalf of the Initial Purchasers
by you and on behalf of the other parties, by one counsel designated by and on behalf of such other parties as described in Section 3 hereof; provided,
further, that any such persons requesting such information or conducting such inspection shall first agree in writing with the Company that any information that is reasonably
and in good faith designated by the Company as confidential at the time of delivery or inspection (as the case may be) of such information shall be kept confidential by such persons, unless
(1) disclosure of such information is required by court or administrative order or is
necessary to respond to inquiries of regulatory authorities; (2) disclosure of such information is required by law; (3) such information becomes generally available to the public other
than as a result of a disclosure or failure to safeguard by any such person; or (4) such information becomes available to any such person from a source other than the Company and such source is
not bound by a confidentiality agreement. 

    (o) The
Company, if requested by any Holder of Securities in connection with an underwritten offering covered by the Shelf Registration Statement, shall cause
(i) its counsel, which may be in-house counsel, to deliver an opinion and updates thereof relating to the Securities in customary form addressed to such Holders and the managing
underwriters, if any, thereof, and dated, in the case of the initial opinion, the effective date of such Shelf Registration Statement (it being agreed that the matters to be covered by such opinion
shall include, without limitation but subject to reasonable qualifications, the due incorporation and good standing of the Company and its material subsidiaries; the qualification of the Company and
its material subsidiaries to transact business as foreign corporations; the due authorization, execution and delivery of the relevant agreement of the type referred to in Section 2(m) hereof;
the due authorization, execution, authentication and issuance, and the validity and enforceability, of the Securities; the absence of material legal or governmental proceedings involving the Company
and its subsidiaries; the absence of governmental approvals (other than those required by the Commission) required to be obtained in connection with the Shelf Registration Statement, the offering and
sale of the Securities, or any agreement of the type referred to in Section 2(m) hereof; and the compliance as to form of the Shelf Registration Statement and any documents incorporated by
reference therein and of the Indenture with the requirements of the Securities Act and the Trust Indenture Act, respectively; and, as of the date of the opinion and as of the effective date of the
Shelf Registration Statement or most recent post-effective amendment thereto, as the case may be, a statement as to the absence from the Shelf Registration Statement, together with the
prospectus included therein, as then amended or supplemented, and any documents incorporated by reference therein, of an untrue statement of a material fact or the omission to state therein a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) its officers to execute and
deliver all customary documents and certificates and updates thereof requested by any underwriters of the Securities and (iii) its independent public accountants to provide to the selling
Holders of the applicable Securities and any underwriter therefor a comfort letter in customary form and covering matters of the type customarily covered in comfort letters in connection with primary
underwritten offerings, subject to receipt of appropriate documentation as contemplated, and only if permitted, by Statement of Auditing Standards No. 72; provided
however, that in connection with an underwritten offering covered by the Shelf Registration Statement the Company may require any underwriter to agree to provisions
substantially in the form of Section 4 hereof. 

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    (p) The Company will use commercially reasonable efforts to (a) if the Initial Securities have been rated prior to the initial sale of such Initial Securities,
confirm such ratings will apply to the Securities covered by a Registration Statement, or (b) if the Initial Securities were not previously rated, cause the Securities covered by a Registration
Statement to be rated with the appropriate rating agencies, if so requested by holders of a majority in aggregate principal amount of Securities covered by the Shelf Registration Statement, or by the
managing underwriters, if any. 

    (q) In
the event that any broker-dealer registered under the Securities Exchange Act of 1934 (the "Exchange Act") shall
underwrite any Securities or participate as a member of an underwriting syndicate or selling group or "assist in the distribution" (within the meaning of the Conduct Rules (the
"Rules") of the National Association of Securities Dealers, Inc. ("NASD")) thereof, whether as a
Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Company will assist such broker-dealer in complying with the
requirements of such Rules, including, without limitation, by (i) if such Rules, including Rule 2720, shall so require, engaging a "qualified independent underwriter" (as defined in
Rule 2720) to participate in the preparation of the Shelf Registration Statement relating to such Securities, to exercise usual standards of due diligence in respect thereto and, if any portion
of the offering contemplated by such Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the yield of such Securities,
(ii) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 5 hereof and (iii) providing such information
to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Rules. 

    (r) The
Company shall use commercially reasonable efforts to take all other steps necessary to effect the registration of the Securities covered by a Registration
Statement contemplated hereby. 

    3.  Registration Expenses.  (a) Except as otherwise provide in Section 7 hereof, all
expenses incident to the Company's performance of and compliance with this Agreement will be borne by the Company, regardless of whether a Registration Statement is ever filed or becomes effective,
including without limitation; 

    (i)  all
registration and filing fees and expenses; 

    (ii) all
fees and expenses of compliance with federal securities and state "blue sky" or securities laws; 

    (iii) all
expenses of printing (including printing certificates for the Securities to be issued and printing of Prospectuses), messenger and delivery services and
telephone; 

    (iv) all
fees and disbursements of counsel for the Company; 

    (v) all
application and filing fees in connection with listing the Securities on a national securities exchange or automated quotation system pursuant to the
requirements hereof; and 

    (vi) all
fees and disbursements of independent certified public accountants of the Company (including the expenses of any special audit and comfort letters required by
or incident to such performance). 

    The
Company will bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the
expenses of any annual audit and the fees and expenses of any person, including special experts, retained by the Company. 

    (b) Except
as otherwise provided in Section 7 hereof, in connection with the Shelf Registration Statement required by this Agreement, the Company will reimburse
the Initial Purchasers and the Holders of Securities covered by the Shelf Registration Statement, for the reasonable fees and 

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disbursements of not more than one counsel, designated by the Holders of a majority in principal amount of the Securities covered by the Shelf Registration Statement (provided that Holders of Common
Stock issued upon the conversion of the Initial Securities shall be deemed to be Holders of the aggregate principal amount of Initial Securities from which such Common Stock was converted) to act as
counsel for the Holders in connection therewith. 

    4.  Indemnification.  (a) The Company agrees to indemnify and hold harmless each Holder and each
person, if any, who controls such Holder within the meaning of the Securities Act or the Exchange Act (each Holder, and such controlling persons are referred to collectively as the
"Indemnified Parties") from and against any losses, claims, damages or liabilities, joint or several, or any actions in respect thereof (including, but
not limited to, any losses, claims, damages, liabilities or actions relating to purchases and sales of the Securities) to which each Indemnified Party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained
in the Shelf Registration Statement or Prospectus including any document incorporated by reference therein, or in any amendment or supplement thereto relating to the Shelf Registration, or arise out
of, or are based upon, the omission or alleged omission to state in a Prospectus including any document incorporated by reference therein, or in any amendment or supplement thereto relating to the
Shelf Registration, a 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,  provided however,
that the Company shall not be liable for any settlement of any action effected without its written consent (which shall not be
unreasonably withheld or delayed), and shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action in respect thereof; provided, however, that (i) the Company shall not be liable in any such
case to the extent that such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Shelf
Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to the Shelf Registration in reliance upon and in conformity with written
information pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein and (ii) with respect to any untrue statement or omission or
alleged untrue statement or omission made in any preliminary prospectus relating to the Shelf Registration Statement, the indemnity agreement contained in this
subsection (a) shall not inure to the benefit of any Holder from whom the person asserting any such losses, claims, damages or liabilities purchased the Securities concerned, to the extent that
a prospectus relating to such Securities was required to be delivered by such Holder under the Securities Act in connection with such purchase and any such loss, claim, damage or liability of such
Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Securities to such person, a copy of the final prospectus if
the Company had previously furnished copies thereof to such Holder; provided further, however, that this indemnity agreement will be in addition to any
liability which the Company may otherwise have to such Indemnified Party. The Company shall also indemnify underwriters that participate in an offering of the Securities under the Shelf Registration
Statement, their officers and directors and each person who controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same extent as provided above with respect to
the indemnification of the Holders of the Securities if requested by such Holders. 

    (b) Each
Holder, severally and not jointly, will indemnify and hold harmless the Company, its officers and directors and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act from and against any losses, claims, damages or liabilities or any actions in respect thereof, to which the Company or any such controlling
person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement
or alleged untrue statement of 

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a material fact contained in the Shelf Registration Statement or Prospectus or in any amendment or supplement thereto relating to the Shelf Registration, or arise out of or are based upon the omission
or alleged omission to state in a Prospectus or in any amendment or supplement thereto relating to the Shelf Registration a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, but in each case only to the extent that the untrue statement or omission or alleged untrue statement or omission was made in reliance upon
and in conformity with written information pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided
however, that the Holders shall not be liable for any settlement of any action effected without their written consent (which shall not be unreasonably withheld or delayed);
and, subject to the limitations set forth immediately preceding this clause, shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company or any such
controlling person in connection with investigating or defending any loss, claim, damage, liability or action in respect thereof. This indemnity agreement will be in addition to any liability which
such Holder may otherwise have to the Company or any of its controlling persons. 

    (c) Promptly
after receipt by an indemnified party under this Section 4 of notice of the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 4, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above, unless and to the extent the indemnifying party did not otherwise learn of such claim and such omission results in the forfeiture by
the indemnifying party of substantial rights or defenses or the indemnifying party is otherwise materially prejudiced by such omission. In case any such action is brought against any
indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with
any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, provided
that if any such indemnified party reasonably determines that representation of such indemnifying party and the indemnified party by the same counsel would present a conflict
of interest, then such counsel shall not, except with the consent of the indemnified party, be counsel to the indemnifying party, and after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section 4 for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof. No indemnifying party shall, without the prior written consent of the indemnified party (which consent shall not be unreasonably
withheld or delayed), effect any settlement or compromise of, or consent to the entry of any judgment with respect to any pending or threatened action in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement, compromise or judgment (i) includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter of such action, and (ii) does not include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party. In no event will any indemnifying party be liable of fees and disbursements of more than one counsel for all indemnified parties in connection with any
one action or separate but similar or related actions in the same jurisdiction arising out of the same general obligations or circumstances, unless such indemnified party reasonably determines that
representation of such indemnifying party and the indemnified party by the same counsel would present a conflict of interest. No indemnified party shall, without the prior written consent of the
indemnifying party, which consent shall not be unreasonably withheld or delayed, effect any settlement or compromise, or consent to the entry of any judgment with respect to any pending or threatened
action in respect of which any indemnifying party is or could have been a party and indemnity could have been sought hereunder by such indemnifying party. 

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    (d) If the indemnification provided for in this Section 4 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to in subsection (a) or (b) above in such proportion as is appropriate to reflect the relative fault of the indemnifying party or parties on the one hand and the
indemnified party on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as well as any other relevant
equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission
or alleged omission to state a material fact relates to information supplied by the Company on the one hand or such Holder or such other indemnified party, as the case may be, on the other, and the
parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding any other provision of this Section 4(d), the Holders shall not be
required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the sale of the Securities pursuant to the Shelf Registration Statement exceeds the
amount of damages which
such Holders have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this
paragraph (d), each person, if any, who controls such indemnified party within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such
indemnified party and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as the Company. 

    (e) The
agreements contained in this Section 4 shall survive the sale of the Securities pursuant to the Shelf Registration Statement and shall remain in full
force and effect, regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party. 

    5.  Additional Interest Under Certain Circumstances.  (a) Additional interest (the
"Additional Interest") with respect to the Securities shall be assessed as follows if any of the following events occur (each such event in clauses
(i) through (iii) below being herein called a "Registration Default"): 

    (i)  the
Shelf Registration Statement has not been filed with the Commission by the 90th day after the first date of original issuance of the Initial
Securities; 

    (ii) the
Shelf Registration Statement has not been declared effective by the Commission by the 180th day after the first date of original issue of the
Initial Securities; 

    (iii) the
Company fails supplement or amend the Shelf Registration Statement in a timely manner (subject to the procedures set forth in Section 2(a) hereof) to
include the names of Holders who propose to sell Securities and who have furnished to the Company a Questionnaire as set forth in Section 1 hereof; provided
however that if such Questionnaire is delivered by such Holder during a Suspension Period (as defined below), the Company shall so inform such Holder and shall take the actions
set forth in Section 2 hereof upon the expiration of the Suspension Period; and 

    (iv) the
Shelf Registration Statement is declared effective by the Commission but (A) the Shelf Registration Statement thereafter ceases to be effective or
(B) the Shelf Registration Statement or the Prospectus ceases to be usable in connection with resales of Transfer Restricted Securities (as defined below) during the periods specified herein
because either (1) any event 

9

 

occurs as a result of which the Prospectus forming part of such Shelf Registration Statement would include any untrue statement of a material fact or omit to state any material fact necessary to make
the
statements therein in the light of the circumstances under which they were made not misleading, or (2) it shall be necessary to amend such Shelf Registration Statement or supplement the related
prospectus, to comply with the Securities Act or the Exchange Act or the respective rules thereunder. 

    Each
of the foregoing will constitute a Registration Default whatever the reason for any such event and whether it is voluntary or involuntary or is beyond the control of the Company
or pursuant to operation of law or as a result of any action or inaction by the Commission. 

    Additional
Interest shall accrue on the Securities over and above the interest set forth in the title of the Initial Securities from and including the date on which any such
Registration Default shall occur to but excluding the earlier of (i) the date on which all such Registration Defaults have been cured and (ii) the day following the last day of the Shelf
Registration Period, at a rate of 0.50% per annum (the "Additional Interest Rate"). 

    (b) Notwithstanding
anything to the contrary herein, the Company may suspend use of the Prospectus and prohibit offers and sales of Transfer Restricted Securities at
any time, if: 

	(A)
	(1)
it is in possession of material non-public information, (2) the Company determines in good faith that disclosure of such material non-public
information at such time would not be in the best interests of the Company and (3) the Company determines that such prohibition is necessary to avoid a requirement to disclose such material
non-public information; or

	(B)
	the
Company determines in good faith that because of valid business reasons (not including the avoidance of the Company's obligation hereunder), including the acquisition or
divestiture of assets, pending corporate developments and similar events, offers and sales of the Transfer Restricted Securities are not in the best interests of the Company (each such period during
which any prohibition on offers and sales of Transfer Restricted Securities is in effect, a "Suspension Period"). 

    A
Suspension Period shall commence on and include the date on which the Company provides written notice (which notice need not specify the nature of the event giving rise to such
notice) to the Holders of Transfer Restricted Securities that offers and sales of Transfer Restricted Securities cannot be made in accordance with this Section 5(b) and shall end on the date on
which each such Holder either receives copies of a prospectus supplement, or is advised in writing by the Company that offers and sales of Transfer Restricted Securities and the use of the Prospectus
may be resumed; provided, however, that all Suspension Periods pursuant to clause (A) of this Section 7(b) in the aggregate shall not
exceed 120 days during any period of twelve consecutive calendar months (nor more than 90 consecutive days for any one Suspension Period). 

    (c) A
Registration Default referred to in Section 5(a)(iii) hereof shall be deemed not to have occurred and be continuing in relation to the Shelf
Registration Statement or the related prospectus if (i) such
Registration Default has occurred as a result of (x) the filing of a post-effective amendment to the Shelf Registration Statement to incorporate annual audited financial information
with respect to the Company where such post-effective amendment is not yet effective and needs to be declared effective to permit Holders to use the related prospectus or (y) other
material events, with respect to the Company that would need to be described in such Shelf Registration Statement or the related prospectus; provided
that in the case of clause (y), the Company is proceeding promptly and in good faith to amend or supplement the Shelf Registration Statement and related prospectus to
describe such events as required by paragraph 2(h) hereof; provided further, however, that in any case if such Registration Default occurs for a
continuous period in excess of 30 days, Additional Interest shall be payable in accordance with the above paragraph from the day such Registration Default occurs until 

10

 

such Registration Default is cured. A Registration Default may not occur during any Suspension Period, and any Registration Default in existence at the commencement of any Suspension Period shall be
tolled and the Additional Interest Rate shall not be increased because of such Registration Default during such Suspension Period. 

    Notwithstanding
anything to the contrary, during the occurrence of any Registration Default, offers and sales of Transfer Restricted Securities pursuant to the Shelf Registration
Statement shall be prohibited. 

    (d) Any
amounts of Additional Interest due pursuant to Section 5(a) will be payable in cash on the regular interest payment dates with respect to the Securities;  provided however, that in the case of a
Registration Default set forth in subsection 5(a)(iii), such Additional Interest shall be paid only to Holders
that have delivered a Questionnaire that caused the Company to incur the obligations set forth therein the non-performance of which is the basis of such Registration Default. The amount of
Additional Interest will be determined (i) in the case of Initial Securities, by multiplying the Additional Interest Rate by the principal amount of the Initial Securities, or (ii) in
the case of Common Stock issued upon conversion of the Initial Securities, by multiplying the Additional Interest Rate by the product of (A) the number of Common Shares issued upon conversion
and (B) the price at which the Initial Securities were converted into Common Stock, in each case as further multiplied by a fraction, the numerator of which is the number of days such
Additional Interest Rate was applicable during such period (determined on the basis of a 360-day year comprised of twelve 30-day months), and the denominator of which is 360. 

    (e) "Transfer Restricted Securities" means each Security until (i) the date on which such Security has been
effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement or (iv) the date on which such Security is distributed to the public pursuant
to Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act. 

    6.  Rules 144 and 144A.  The Company shall use commercially reasonable efforts to file the reports
required to be filed by it under the Securities Act and the Exchange Act in a timely manner and, if at any time the Company is not required to file such reports, it will, upon the request of any
Holder, make publicly
available other information so long as necessary to permit sales of their securities pursuant to Rules 144 and 144A. The Company covenants that it will take such further action as any Holder
may reasonably request, all to the extent required from time to time to enable such Holder to sell Transfer Restricted Securities without registration under the Securities Act within the limitation of
the exemptions provided by Rules 144 and 144A (including the requirements of Rule 144A(d)(4)). The Company will provide a copy of this Agreement to prospective purchasers of Securities
identified to the Company by the Initial Purchasers upon request. Upon the request of any Holder, the Company shall deliver to such Holder a written statement as to whether it has complied with such
requirements. Notwithstanding the foregoing, nothing in this Section 6 shall be deemed to require the Company to register any of its securities pursuant to the Exchange Act. 

    7.  Underwritten Registrations.  If any of the Transfer Restricted Securities covered by the Shelf
Registration are to be sold in an underwritten offering, the investment banker or investment bankers and manager or managers that will administer the offering ("Managing
Underwriters") will be selected by the holders of a majority in aggregate principal amount of such Transfer Restricted Securities to be included in such offering (provided that
holders of Common Stock issued upon conversion of the Initial Securities shall not be deemed holders of Common Stock, but shall be deemed to be holders of the aggregate principal amount of Initial
Securities from which such Common Stock was converted); provided, however, that (a) such investment banker or bankers must be reasonably
satisfactory to the Company and (b) the Company shall not be required to arrange for or participate in more than one underwritten offering during the Shelf Registration Period. 

11

 

    No person may participate in any underwritten registration hereunder unless such person (i) agrees to sell such person's Transfer Restricted Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements and (iii) at least 20% of the outstanding Transfer Restricted
Securities are included in such underwritten offering. The holders participating in any underwritten offering shall be responsible for any expenses customarily borne by selling securityholders,
including underwriting discounts and commissions and fees and expenses of counsel to the selling securityholders to the extent not required to be paid by the Company pursuant to Section 3
hereof. 

    8.  Miscellaneous.  

    (a) Remedies. The Company acknowledges and agrees that any failure by the Company to comply with its obligations under
Section 1 hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages
for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Company's obligations
under Sections 1 hereof. The Company further agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 

    (b) No Inconsistent Agreements. The Company will not on or after the date of this Agreement enter into any agreement
with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders
hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of the Company's securities under any agreement in effect on the date hereof. 

    (c) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers
or consents to departures from the provisions hereof may not be given, except by the Company and the Initial Purchasers. 

    (d) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand
delivery, first-class mail, facsimile transmission, or air courier which guarantees overnight delivery: 

    (1) if
to a Holder of the Securities, at the most current address given by such Holder to the Company. 

    (2) if
to the Initial Purchasers; 

	 	 	 	 	Credit Suisse First Boston Corporation

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-8278

Attention: Transactions Advisory Group
	

 	
 	

with a copy to:
	

 	
 	

 	
 	

Shearman & Sterling

555 California Street, 20th Floor

San Francisco, CA 94104-1522

Fax No.: (415) 616-1199

Attention: John D. Wilson
	

 	
 	

 	
 	

 

12

 

	

 	
 	

(3)	
 	

if to the Company, at its address as follows:
	

 	
 	

 	
 	

Wind River Systems, Inc.

500 Wind River Way

Alameda, CA 94501 Fax No.: (510) 749-2944

Attention: Vice President and General Counsel
	

 	
 	

with a copy to:
	

 	
 	

 	
 	

Cooley Godward LLP

One Maritime Plaza, 20th Floor

San Francisco, CA 94111-3580

Fax No.: (415) 951-3699

Attention: Kenneth L. Guernsey

    All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three business days after
being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged by recipient's facsimile machine operator, if sent by facsimile transmission; and on the day delivered, if sent by
overnight air courier guaranteeing next day delivery. 

    (e) Third-Party Beneficiaries. The Holders shall be third-party beneficiaries to the agreements
made hereunder between the Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent they may deem such
enforcement necessary or advisable to protect their rights or the rights of Holders hereunder. 

    (f)  Successors and Assigns. This Agreement shall be binding upon the Company, the Initial Purchasers and the Holders
and each of their successors and assigns. 

    (g) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

    (h) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 

    (i)  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. 

    The
Company hereby submits to the non-exclusive jurisdiction of the Federal and state courts in the Borough of Manhattan in the City of New York in any suit or proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. 

    (j)  Severability. If any one or more of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby. 

    (k) Securities Held by the Company. Whenever the consent or approval of Holders of a specified percentage of principal
amount of Securities is required hereunder, Securities held by the Company or its affiliates (other than subsequent Holders of Securities if such subsequent Holders are deemed to be affiliates solely
by reason of their holdings of such Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

13

 

    If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the several Initial Purchasers and the Company in accordance with its terms. 

	

 	
 	

Very truly yours,
	

 	

 	

WIND RIVER SYSTEMS, INC.
	

 	

 	

By:	

/s/ MICHAEL ZELLNER   
 Name: Michael Zellner

Title: Vice President, Finance and Chief Financial Officer

	

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.	

 
	

 CREDIT SUISSE FIRST BOSTON CORPORATION

UBS WARBURG LLC

THOMAS WEISEL PARTNERS LLC	

 
	

BY CREDIT SUISSE FIRST BOSTON CORPORATION	

 
	

 By:	

 	

/s/ RICHARD HART   
 Title: Director

	

 

14

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EXHIBIT 10.54

REGISTRATION RIGHTS AGREEMENTPrepared by MERRILL CORPORATION

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Exhibit 10.1  

 
 

EMPLOYMENT AGREEMENT    
  

    THIS AGREEMENT by and between NetBank, Inc., a Georgia corporation (the "Company"), and Douglas K. Freeman (the "Executive"), dated as of
November 18, 2001 and effective as of the Effective Time (as defined in the Merger Agreement (the "Merger Agreement"), dated as of November 18, 2001, by and between the Company and
Resource Bancshares Mortgage Group, Inc., a Delaware corporation ("RBMG"). 

W I T N E S S E T H  

    WHEREAS, the Company wishes to provide for the employment by the Company of the Executive, and the Executive wishes to serve the Company, in the capacities and
on the terms and conditions set forth in this Agreement; 

    NOW,
THEREFORE, it is hereby agreed as follows: 

    1.  TERM.  The Term of this Agreement shall commence as of the Effective Time and end on the third
anniversary thereof. Commencing on the day following the Effective Time the Term shall be automatically extended on each day for one additional day, so that the Term shall remain a
three-year term until either party gives written notice to the other that the automatic extensions shall cease, whereupon the Term shall expire on the day preceding the third anniversary
of the date of delivery of such written notice. Notwithstanding the foregoing, in the event the Merger (as defined in the Merger Agreement) does not occur, this Agreement shall be void. 

    2.  POSITION AND DUTIES.  (a)  During the Term, the Executive shall serve as the position
set forth on Annex A hereto of the Company, with such duties and responsibilities as are set forth on Annex A
hereto, and such other duties and responsibilities not inconsistent therewith as may from time to time be assigned to him by the reporting relationship set forth an Annex A hereto of the Company. 

    (b)  During
the Term, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive shall devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive under this Agreement, use the
Executive's reasonable best efforts to carry out such responsibilities faithfully and efficiently. It shall not be considered a violation of the foregoing for the Executive to serve on corporate,
industry, civic or charitable boards or committees, so long as such activities do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Company in
accordance with this Agreement. 

    (c)  The
Executive shall be based primarily and reside in the general area of Atlanta, Georgia. 

    3.  COMPENSATION. BASE SALARY.  (a) During the Term, the Executive shall receive an annual base salary
("Annual Base Salary") of an amount not less than his annual base salary from RBMG as in effect immediately before the Effective Time. The Annual Base Salary shall be payable in accordance with the
Company's regular payroll practice for its senior executives, as in effect from time to time. During the Term, the Annual Base Salary shall be reviewed by the Compensation Committee of the Company's
Board of Directors (the "Compensation Committee") for increase at least annually. Any increase in the Annual Base Salary shall not limit or reduce any other obligation of the Company under this
Agreement. The Annual Base Salary shall not be reduced after any such increase, and the term "Annual Base Salary" shall thereafter refer to the Annual Base Salary as so increased. 

    (b)  INCENTIVE
COMPENSATION.  During the Term, the Executive shall participate in annual cash incentive compensation plans, as adopted and approved by
the Board of Directors of the Company (the "Board") or the Compensation Committee from time to time and shall have an annual cash bonus target that is not less than the amount of the annual bonus
earned by the 

 

Executive with respect to the last full completed period before the Effective Time (the "Minimum Bonus Amount"). The Executive's annual cash bonuses shall be based upon achievement of performance
objectives jointly established by the Compensation Committee and the Executive. Without limiting the foregoing, the Executive shall receive annual cash bonuses (i) commensurate with his
experience, status, performance and title and (ii) in any event, at a level that is not less than an amount that is required to be competitive with the annual cash bonuses paid in the
marketplace to executives with similar experience, positions, performance and status. 

    (c)  OTHER
BENEFITS; PERQUISITES.  During the Term and thereafter: (1) the Executive shall be entitled to participate in all applicable fringe
benefit and perquisite programs and savings and
retirement plans (including non-qualified supplemental executive retirement plans), practices, policies and programs of the Company to the same extent as other senior executives of the
Company and (2) the Executive and/or the Executive's eligible dependents, as the case may be, shall be eligible for participation in, and shall receive all benefits under, all applicable
welfare benefit plans, practices, policies and programs provided by the Company, practices, policies and programs including, without limitation, medical, prescription, dental, disability, employee
life insurance, group life insurance, accidental death and travel accident insurance plans and programs to the same extent, and subject to the same terms, conditions, cost-sharing
requirements and the like (other than severance pay, salary continuation, retention pay, change in control or similar plans), as other senior executives of the Company. The Executive shall be
reimbursed for membership in Country Club of the South, and shall receive a car allowance of $750 per month. 

    (d)  INITIAL
OPTION GRANT.  As of the date on which the Effective Time occurs, the Compensation Committee shall grant to the Executive a
ten-year nonqualified option (the "Option") to purchase 250,000 shares of the common stock of the Company ("Company Stock") pursuant to the NetBank Inc. 1996 Stock Incentive Plan.
The Option shall have a per share exercise price equal to the closing price of the Company Stock on the New York Stock Exchange on the date on which the Effective Time occurs. Subject to the
provisions hereof, the Option shall vest and become fully exercisable with respect to 20% of the shares subject thereto on the date of grant and with respect to an additional 20% of the shares subject
thereto on each of the subsequent four anniversaries of the date of grant, provided the Executive remains employed by the Company on the applicable vesting date. Notwithstanding the foregoing, the
Option will become fully vested and exercisable if, during the Term, there occurs a change in control of the Company (as defined in Annex B hereto), the Executive dies, becomes Disabled (as
hereinafter defined), is terminated by the Company without Cause or the Executive voluntary resigns either for Good Reason (as hereinafter defined) or with the approval of the Board. In the event of a
termination of the Executive's employment by the Company for Cause, any unexercised portion of the Option (whether or not otherwise exercisable) shall immediately terminate. In the event of a
termination of the Executive's employment by the Executive without Good Reason which is not approved by the Board, (A) the unvested portion of the Option shall immediately terminate, and
(B) the vested portion of the Option shall remain exercisable for 90 days following the Date of Termination (as hereinafter defined). In the event of a termination of the Executive's
employment by the Company without Cause or by the Executive which is either (x) for Good Reason or (y) approved by the Board, the Option shall remain exercisable for the remainder of its
ten year term. In the event of a termination of the Executive's employment on account of the Executive's death or Disability, the Option shall remain exercisable for one year following the Date of
Termination. Notwithstanding anything herein to the contrary, in no event will the Option be exercisable following the tenth anniversary of the Effective Date. The Company shall, at its expense, cause
the Company Stock subject to the Option to be registered under the Securities Act of 1933, as amended (the "Securities Act"), and registered or qualified under applicable state law, to be freely
resold. The Company shall thereafter use its best efforts to maintain the effectiveness of such registration and qualification for so long as the Executive holds the Option (or any portion 

2

 

thereof) or any of the Company Stock acquired pursuant thereto. The Option shall be governed by an option agreement, the terms of which shall be consistent with the provisions of this
Section 3(d) and which is otherwise acceptable to the Executive and the Company. 

    (e)  OTHER
EQUITY AWARDS.  During the Term, the Executive shall receive additional equity awards (i) commensurate with his experience, status,
performance and title and (ii) in any event, at a level that is not less than an amount that is required to be competitive with the equity awards made in the marketplace to executives with
similar experience, positions, performance and status. 

    (f)  EXPENSES.  To
the extent not otherwise paid for by the Company or one of its subsidiaries, the Company will reimburse the Executive or cause the
Executive to be reimbursed for reasonable expenses incurred in promoting the Company's and its subsidiaries' businesses, including expenses for travel and entertainment, such reimbursement to be made
promptly upon presentation of appropriate receipts or other substantiation. 

    (g)  VACATION.  On
a non-cumulative basis the Executive shall be entitled to five (5) weeks of vacation in each year of this
Agreement, during which his compensation shall be paid in full, such vacation to be taken at the time the Executive determines appropriate, taking into account the requirements of the Employer. 

    4.  TERMINATION OF EMPLOYMENT.  (a)  DEATH OR DISABILITY.  The Executive's
employment shall terminate automatically upon the Executive's death during the Term. The Company shall be entitled to terminate the Executive's employment because of the Executive's Disability during
the Term. "Disability" means that the Executive has been unable, for the period specified in the Company's disability plan for senior executives, but not less than a period of 180 consecutive business
days, to perform the Executive's duties under this Agreement, as a result of physical or mental illness or injury, and a physician selected by the Company or its insurers, and acceptable to the
Executive or the Executive's legal representative, has determined that the Executive is disabled within the meaning of the applicable disability plan for senior executives. A termination of the
Executive's employment by the Company for Disability shall be communicated to the Executive by written notice, and shall be effective on the 30th day after receipt of such notice by the Executive (the
"Disability Effective Date"), unless the Executive returns to full-time performance of the Executive's duties before the Disability Effective Date. 

    (b)  TERMINATION
BY THE COMPANY.  (i) The Company may terminate the Executive's employment during the Term for Cause or without Cause, in either case,
only by affirmative vote of eight members of the eleven members of the Board (or, in the event that the number of members of the Board is increased or decreased, by an affirmative vote of
two-thirds of the entire membership of the Board). "Cause" means (i) the conviction of the Executive for the commission of a felony, (ii) willful misconduct by the Executive
(in either case that results in material and demonstrable damage to the business or reputation of the Company) or (iii) the removal of the Executive from his position as an officer or executive
of the Company pursuant to a written order by any regulatory agency with authority or jurisdiction over the Executive. No act or failure to act on the part of the Executive shall be considered
"willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act
or failure to act that is based upon authority given pursuant to a resolution duly adopted by the Board, or the advice of counsel for the Company, shall be conclusively presumed to be done, or omitted
to be done, by the Executive in good faith and in the best interests of the Company. In the event of a dispute concerning the application of this provision, no claim by the Company that
Cause exists shall be given effect unless the Company establishes to the Board by clear and convincing evidence that Cause exists. 

3

 

    (ii)  A
termination of the Executive's employment for Cause shall be not be effective unless it is accomplished in accordance with the following procedures. The Company
shall give the Executive written notice ("Notice of Termination for Cause") of its intention to terminate the Executive's employment for Cause, setting forth in reasonable detail the specific conduct
of the Executive that it considers to constitute Cause and the specific provision(s) of this Agreement on which it relies, and stating the date, time and place of the Special Board Meeting for Cause.
The "Special Board Meeting for Cause" means a meeting of the Board called and held specifically and exclusively for the purpose of considering the Executive's termination for Cause, that takes place
not less than twenty nor more than thirty business days after the Executive receives the Notice of Termination for Cause. The Executive shall be given an opportunity, together with counsel, to be
heard at the Special Board Meeting for Cause. The Executive's termination for Cause shall be effective when and if a resolution is duly adopted at the Special Board Meeting for Cause by affirmative
vote of eight members of the eleven members of the Board (or, in the event that the number of members of the Board is increased or decreased, by an affirmative vote of two-thirds of the
entire membership of the Board) stating that, in the good faith opinion of the Board, the Executive is guilty of the conduct described in the Notice of Termination for Cause and that such conduct
constitutes Cause under this Agreement. 

    (c)  GOOD
REASON.  (i) The Executive may terminate employment for Good Reason or without Good Reason. "Good Reason" means: 

    A.  the
assignment to the Executive of any duties or responsibilities inconsistent in any material respect with those customarily associated with the positions to be
held by the Executive during the applicable period pursuant to this Agreement, or any other action by the Company that results in a material diminution in the Executive's position, authority, duties
or responsibilities, other than an isolated, insubstantial and inadvertent action that is not taken in bad faith and is remedied by the Company promptly after receipt of notice thereof from the
Executive; 

    B.  any
failure by the Company to comply with any provision of Section 3 of this Agreement, other than an isolated, insubstantial and inadvertent failure that is
not taken in bad faith and is remedied by the Company promptly after receipt of notice thereof from the Executive; 

    C.  any
requirement by the Company that the Executive's services be rendered primarily at a location or locations other than that provided for in paragraph (c)
of Section 2 of this Agreement; 

    D.  a
change in control of the Company (as defined in Annex B hereto), provided that the Executive shall not be deemed to have Good Reason for purposes of this
Agreement until the date which is six months following the occurrence of a change in control; or 

    E.  any
other material breach of this Agreement by the Company that is not remedied by the Company promptly after receipt of notice thereof from the Executive. 

    (ii)  A
termination of employment by the Executive for Good Reason shall be effectuated by giving the Company written notice ("Notice of Termination for Good Reason")
of the termination, setting forth in reasonable detail the specific conduct of the Company that constitutes Good Reason and the specific provision(s) of this Agreement on which the Executive relies.
Such notice must be given within 60 days of the date the Executive becomes aware of the occurrence of an event constituting Good Reason (or, in the case of an event of Good Reason described in
Section 4(c)(i)(D), within 60 days of the six month anniversary of 

4

 

the change in control), following which time such event shall no longer constitute Good Reason if no such notice has been given. A termination of employment by the Executive for Good Reason shall be
effective on the fifth business day following the date when the Notice of Termination for Good Reason is given, unless the notice sets forth a later date (which date shall in no event be later than
30 days after the notice is given). 

    (iii)  The
failure to set forth any fact or circumstance in a Notice of Termination for Good Reason shall not constitute a waiver of the right to assert, and shall not
preclude the Executive from asserting such fact or circumstance in an attempt to enforce any right under or provision of this Agreemement. 

    (iv)  A
termination of the Executive's employment by the Executive without Good Reason shall be effected by giving the Company written notice of the termination. 

    (d)  DATE
OF TERMINATION.  The "Date of Termination" means the date of the Executive's death, the Disability Effective Date, the date on which the
termination of the Executive's employment by the Company for Cause or without Cause or by the Executive for Good Reason is effective, or the date on which the Executive gives the Company notice of a
termination of employment without Good Reason, as the case may be. 

    5.  OBLIGATIONS OF THE COMPANY UPON TERMINATION.  (a) OTHER THAN FOR CAUSE, DEATH OR DISABILITY,
OR FOR GOOD REASON. If, during the Term, the Company terminates the Executive's employment for any reason other than Cause, death or Disability, or the Executive
terminates his employment for Good Reason, the Company shall pay to the Executive, not later than the Date of Termination, (i) an amount equal to three times (a) the Annual Base Salary
and (b) the greater of (A) the Minimum Bonus Amount and (B) the maximum annual incentive bonus opportunity for which the Executive is eligible with respect to the year in which
the Date of Termination occurs and (ii) any unpaid amounts of the Executive's Annual Base Salary through the Date of Termination. All welfare benefits and perquisites provided to the Executive
during the Term will, to the extent practicable, continue to be provided by the Company to the Executive for the greater of (1) one year following the date of such termination and
(2) the unexpired portion of the Term (not giving effect to the termination of the Executive's employment). To the extent the Company determines that the continuation of benefits described in
the preceding sentence is not practicable, the Company shall pay to the Executive an amount sufficient to permit the Executive to purchase benefits equivalent to those which would otherwise have been
provided by the Company during the applicable period. All of the Executive's outstanding equity awards shall vest and become fully exercisable upon such termination and shall remain outstanding
through their maximum remaining term. The Company shall also pay or provide to the Executive, in the event of such a termination, all compensation and benefits payable to the Executive under the terms
of the Company's compensation and benefit plans, programs or arrangements as in effect immediately prior to the Date of Termination. 

    (b)  DEATH
AND DISABILITY.  If the Executive's employment is terminated by reason of the Executive's death or Disability during the Term, the Company
shall pay to the Executive or, in the case of the Executive's death, to the Executive's designated beneficiaries (or, if there is no such beneficiary, to the Executive's estate or legal
representative), in a lump sum in cash within 30 days after the Date of Termination, the sum of the following amounts: (1) any portion of the Executive's Annual Base Salary through the
Date of Termination that has not yet been paid; (2) an amount equal to the product of (A) the maximum annual bonus that the Executive would have been eligible to earn for the period
during which such termination occurs, and (B) a fraction, the numerator of which is the number of days in such period through the Date of Termination, and the denominator of which is the total
number of days in the relevant period; and (3) all compensation and benefits payable to the Executive under the terms of the Company's 

5

 

compensation and benefit plans, programs or arrangements as in effect immediately prior to the Date of Termination. 

    (c)  BY
THE COMPANY FOR CAUSE; BY THE EXECUTIVE OTHER THAN FOR GOOD REASON.  If the Executive's employment is terminated by the Company for Cause or the
Executive voluntarily terminates employment other than for Good Reason during the Term, the Company shall pay to the Executive in a lump sum in cash immediately prior to the Date of Termination,
(1) any portion of the Executive's Annual Base Salary through the Date of Termination that has not been paid; and (2) all compensation and benefits payable to the Executive under the
terms of the Company's compensation and benefit plans, programs or arrangements as in effect immediately prior to the Date of Termination. 

    (d)  (i)
In the event that any payment or benefit received or to be received by the Executive pursuant to the terms of this agreement (the "Contract Payments") or of
any other plan, arrangement or agreement of the Company (or any affiliate) ("Other Payments" and, together with the Contract Payments, the "Payments") would be subject to the excise tax (the "Excise
Tax") imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code") as determined as provided below, the Company shall pay to the Executive, at the time specified in
Section 5(d)(ii) below, an additional amount (the "Gross-Up Payment") such that the net amount retained by the Executive, after deduction of the Excise Tax on Payments and
any federal, state and local income tax and the Excise Tax upon the Gross-Up Payment, and any interest, penalties or additions to tax payable by the Executive with respect thereto, shall
be equal to the total present value (using the applicable federal rate (as defined in Section 1274(d) of the Code in such calculation) of the Payments at the time such Payments are to be made.
For purposes of determining whether any of the Payments will be subject to the Excise Tax and the amounts of such Excise Tax, (1) the total amount of the Payments shall be treated as "parachute
payments" within the meaning of section 280G(b)(2) of the Code, and all "excess parachute payments" within the meaning of section 280G(b)(1) of the Code shall be treated as subject to
the Excise Tax, except to the extent that, in the opinion of the Company's independent auditor (the "Auditor"), a Payment (in whole or in part) does not constitute a "parachute payment" within the
meaning of section 280G(b)(2) of the Code, or such "excess parachute payments" (in whole or in part) are not subject to the Excise Tax, (2) the amount of the Payments that shall be
treated as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the Payments or (B) the amount of "excess parachute payments" within the meaning of
section 280G(b)(1) of the Code (after applying clause (1) hereof), and (3) the value of any noncash benefits or any deferred payment or benefit shall be determined by the Auditor
in accordance with the principles of sections 280G(d)(3) and (4) of the Code. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay
federal income taxes at the highest marginal rates of federal income taxation applicable to the individuals in the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rates of taxation applicable to individuals as are in effect in the state and locality of the Executive's residence in the calendar year in which the
Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes that can be obtained from deduction of such state and local taxes, taking into account any limitations
applicable to individuals subject to federal income tax at the highest marginal rates. 

    (ii)  The
Gross-Up Payments provided for in Section 5(d)(i) hereof shall be made upon the earlier of (i) ten days following termination
of the Executive's employment or (ii) the imposition upon the Executive or payment by the Executive of any Excise Tax. 

    (iii)  If
it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding or the opinion of the Auditor that the Excise Tax is
less than the amount taken into account under Section 5(d)(i) hereof, the Executive shall repay to the 

6

 

Company within thirty (30) days of the Executive's receipt of notice of such final determination or opinion the portion of the Gross-Up Payment attributable to such reduction (plus
the portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income tax imposed on the Gross-Up Payment being repaid by the Executive if such
repayment results in a reduction in Excise Tax or a federal, state and local income tax deduction) plus any interest received by the Executive on the
amount of such repayment. If it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding or the opinion of the Auditor that the Excise Tax exceeds the
amount taken into account hereunder (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make
an additional Gross-Up Payment in respect of such excess within thirty (30) days of the Company's receipt of notice of such final determination or opinion. 

    (iv)  In
the event of any change in, or further interpretation of, sections 280G or 4999 of the Code and the regulations promulgated thereunder, the Executive shall be
entitled, by written notice to the Company, to request an opinion of the Auditor regarding the application of such change to any of the foregoing, and the Company shall use its best efforts to cause
such opinion to be rendered as promptly as practicable. All fees and expenses of the Auditor incurred in connection with this agreement shall be borne by the Company. 

    6.  NON-EXCLUSIVITY OF RIGHTS.  Nothing in this Agreement shall prevent or limit the
Executive's continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies for which the Executive may qualify (except to the
extent that such participation would result in the duplication of benefits provided in this Agreement), nor shall anything in this Agreement limit or otherwise affect such rights as the Executive may
have under any contract or agreement with the Company or any of its affiliated companies. Vested benefits and other amounts that the Executive is otherwise entitled to receive under any plan, policy,
practice or program of, or any contract of agreement with, the Company or any of its affiliated companies on or after the Date of Termination shall be payable in accordance with the terms of each such
plan, policy, practice, program, contract or agreement, as the case may be, except as explicitly modified by this Agreement. 

    7.  COMPANY'S OBLIGATION ABSOLUTE; NO MITIGATION.  The Company's obligation to make the payments provided
for in, and otherwise to perform its obligations under, this Agreement shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that the
Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement such amounts shall not be reduced, regardless of whether the Executive obtains other employment. 

    8.  SOLICITATION; PUBLIC STATEMENTS.  The Executive acknowledges that he has had and will have extensive
contacts with employees and customers of, and others having business dealings with, the Company. For the purposes of this Section and Section 9, the term "the Company" shall be deemed to
include subsidiaries of the Company. Accordingly, the Executive covenants and agrees that during the Term and during the twelve month period immediately thereafter he will not (i) solicit any
of the employees of the Company who were employed by the Company during the time when the Executive was employed by the Company to leave the Company, (ii) interfere with the relationship of the
Company with any such employees or (iii) personally target or solicit to the detriment of the Company any customers or others having business dealings with the Company in the business
activities and endeavors in which the Executive was involved. The Executive further covenants and agrees that during the term of his employment and during the twelve month period immediately
thereafter he will not make public statements in derogation of the Company. 

7

 

    9.  CONFIDENTIALITY.  The Executive acknowledges that he has had and will have access to certain
information related to the business, operations, future plans and customers of the Company, the disclosure or use of which could cause the Company substantial losses and damages. Accordingly, the
Executive covenants that during the Term and for three years thereafter he will keep confidential all information and documents furnished to him by or on behalf of the Company and not use the same to
his advantage, except (i) as required by law, (ii) to the extent such information or documents are or thereafter become lawfully obtainable from other sources or are in the public domain
through no fault on his own part or (iii) as is consented to in writing by the Company. Upon termination of his employment, the Executive shall return to the Company all records, lists, files
and documents which are in his possession and which relate to the Company. 

    10.  REMEDIES.  The Executive agrees and acknowledges that a violation of the covenants contained in
Sections 8 and 9 of this Agreement will cause irreparable damage to the Company, and that it is and will be impossible to estimate or determine the damage that will be suffered by the Company in the
event of a breach by the Executive of any such covenant. Therefore, the Executive further agrees that in the event of any violation or threatened violation of such covenants, the Company shall be
entitled as a matter of course to an injunction issued by any court of competent jurisdiction restraining such violation or threatened violation by the Executive, such right to an injunction to be
cumulative and in addition to whatever other remedies the Company may have. 

    11.  EXECUTIVE'S COVENANTS.  The Executive hereby represents and warrants to the Company that the
execution of this Agreement and the performance of his duties and obligations hereunder will not breach or be in conflict with any other agreement to which he is a party or by which he is bound and
that he is not now subject to any covenant against competition or similar covenant that would affect the performance of his duties hereunder. 

    12.  DISPUTE RESOLUTION; ATTORNEYS' FEES.  All disputes arising under or related to the employment of the
Executive or the provisions of this agreement shall be settled by arbitration under the rules of the American Arbitration Association then in effect, such arbitration to be held in Atlanta, Georgia,
as the sole and exclusive remedy of either party and judgement on any arbitration award may be entered in any court of competent jurisdiction. The Company agrees to pay, as incurred, to the fullest
extent permitted by law, all legal fees and expenses that the Executive may reasonably incur as a result of any contest (regardless of the outcome) by the Company, the Executive or others of the
validity or enforceability of or liability under, or otherwise involving, any provision of this Agreement, together with interest on any delayed payment at the applicable federal rate provided for in
Section 7872(f)(2)(A) of the Code, provided, however, the Company shall not have any obligation to pay legal fees and expenses to the extent a claim by the Executive is determined to be
frivolous, and the Executive shall refund such amounts to the Company, to the extent the Company has made payment to the Executive of such amounts. 

    13.  SUCCESSORS.  (a) This Agreement is personal to the Executive and, without the prior written consent
of the Company, shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the
Executive's legal representatives. 

    (b)  This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

    (c)  The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would have been required to perform it if no such
succession had taken place. As used in this Agreement, the "Company" shall mean both the Company as 

8

 

defined above and any such successor that assumes and agrees to perform this Agreement, by operation of law or otherwise. 

    14.  MISCELLANEOUS.  (a) This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Georgia, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may
not be amended or modified except by a written agreement executed by the parties hereto or their respective successors and legal representatives. 

    (b)  All
notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party or by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows: 

If
to the Executive: 

Mr. Douglas
K. Freeman

4934 Morven Road

Jacksonville, Florida 32210 

If
to the Company: 

NetBank, Inc.

Royal Centre Three, Suite 100

11475 Great Oaks Parkway

Alpharetta, Georgia 30022

Attn: Chief Financial Officer 

or
to such other address as either party furnishes to the other in writing in accordance with this paragraph (b) of Section 14. Notices and communications shall be effective when
actually received by the addressee. 

    (c)  The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. If
any provision of this Agreement shall be held invalid or unenforceable in part, the remaining portion of such provision, together with all other provisions of this Agreement, shall remain valid and
enforceable and continue in full force and effect to the fullest extent consistent with law. 

    (d)  Notwithstanding
any other provision of this Agreement, the Company may withhold from amounts payable under this Agreement all federal, state, local and foreign
income or employment taxes that are required to be withheld by applicable laws or regulations. 

    (e)  The
Executive's or the Company's failure to insist upon strict compliance with any provisions of, or to assert, any right under, this Agreement (including, without
limitation, the right of the Executive to terminate employment for Good Reason pursuant to paragraph (c) of Section 4 of this Agreement) shall not be deemed to be a waiver of such
provision or right or of any other provision of or right under this Agreement. 

    (f)  The
Executive and the Company acknowledge that, as of the Effective Time, this Agreement supersedes (i) the Employment Agreement described on Annex A hereto
between the Executive and RBMG and (ii) any other agreement between them concerning the subject matter hereof, including the Change of Control Agreement between the Executive and RBMG described
on Annex A hereto. 

    (g)  The
rights and benefits of the Executive under this Agreement may not be anticipated, assigned, alienated or subject to attachment, garnishment, levy, execution or
other legal or equitable process except as required by law. Any attempt by the Executive to anticipate, alienate, assign, sell, transfer, pledge, encumber or charge the same shall be void. Payments
hereunder shall not be considered assets of the Executive in the event of insolvency or bankruptcy. 

    (h)  This
Agreement may be executed in several counterparts, each of which shall be deemed an original, and said counterparts shall constitute but one and the same
instrument. 

9

 

    IN
WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and, pursuant to the authorization of its Board, the Company has caused this Agreement to be executed in its
name on its behalf, all as of the day and year first above written. 

	 	 	/s/ DOUGLAS K. FREEMAN   
 Douglas K. Freeman
	

 	
 	

NETBANK, INC.
	

 	
 	

By:	
 	

/s/ T. STEPHEN JOHNSON   
 Title:  Chairman of the Board

10

 
Annex A  

	Position:	 	Chief Executive Officer of the Company
	

Duties and Responsibilities:	
 	

The Executive shall have such duties and responsibilities as are customarily assigned to the Chief Executive Officer of the Company, and such other duties and responsibilities not inconsistent therewith as may from time to time be assigned to him by
the Board of Directors of the Company Without limiting the generality of the foregoing, during the Term the Executive shall act as (i) the senior officer of the Company, (ii) the primary spokesperson to shareholders and the investment community,
(iii) the person primarily responsible for establishing policy and direction for the Company and (iv) the person to whom the senior executives of the Company report.
	

Reporting Relationship:	
 	

The Executive shall report only to the Board of Directors of the Company
	

Business Location:	
 	

Other than for periods spent traveling in connection with the performance of the Executive's duties hereunder, the Executive shall be based in the Atlanta, Georgia area.

11

 
Annex B  

    "CHANGE IN CONTROL" means any one of the following events: 

    (1)  the
acquisition by any individual, entity or "group", within the meaning of Section 13(d) (3) or Section 14(d) (2) of the Securities
Exchange Act of 1934, as amended, (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934) of voting securities
of the Company where such acquisition causes any such Person to own twenty-five percent (25%) or more of the combined voting power of the then outstanding voting securities then entitled
to vote generally in the election of directors (the "Outstanding Voting Securities"); provided, however, that for purposes of this paragraph (1) of this definition, the following shall not be
deemed to result in a Change in Control, (i) any acquisition directly from the Company, unless such a Person subsequently acquires additional shares of Outstanding Voting Securities other than
from the Company, in which case any such subsequent acquisition shall be deemed to be a Change in Control; (ii) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company; or (iii) any acquisition by merger, consolidation, share exchange, combination, reorganization, sale or transfer or like
transaction that is NOT otherwise described in paragraph (2) or (4) below as long as no Person (other than an employee benefit plan or related trust sponsored or maintained by the
Company, any corporation controlled by the Company or any company resulting from such business combination) obtains beneficial ownership of twenty-five percent (25%) or more of the then
Outstanding Voting Securities; 

    (2)  a
merger, consolidation, share exchange, combination, reorganization or like transaction involving the Company in which the stockholders of the Company immediately
prior to such transaction do not own at least fifty percent (50%) of the value or voting power of the issued and outstanding capital stock of the Company or its successor immediately after such
transaction; 

    (3)  the
sale or transfer (other than as security for the Company's obligations) of more than fifty percent (50%) of the assets of the Company in any one transaction, a
series of related transactions or a series of transactions occurring within a one (1) year period in which the Company, any corporation controlled by the Company or the stockholders of the
Company immediately prior to the transaction do not own at least fifty percent (50%) of the value or voting power of the issued and outstanding equity securities of the acquiror immediately after the
transaction; 

    (4)  the
sale or transfer of more than fifty percent (50%) of the value or voting power of the issued and outstanding capital stock of the Company by the holders
thereof in any one transaction, a series of related transactions or a series of transactions occurring within a one (1) year period in which the Company, any corporation controlled by the
Company or the stockholders of the Company immediately prior to the transaction do not own at least fifty percent (50%) of the value or voting power of the issued and outstanding equity securities of
the acquiror immediately after the transaction; or 

    (5)  the
dissolution or liquidation of the Company. 

12

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