Document:

exv4w8

 

Exhibit 4.8

AMENDED AND RESTATED

SHAREHOLDERS’ AGREEMENT

dated as of

April 16, 2007

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 1	 	 	 	 
	 

	 	Definitions	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 2	 	 	 	 
	 

	 	Corporate Governance	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.

	 	Composition of the Board
	 	 	8	 
	Section 2.02.

	 	Removal
	 	 	9	 
	Section 2.03.

	 	Vacancies
	 	 	9	 
	Section 2.04.

	 	Action by the Board; Shareholders
	 	 	10	 
	Section 2.05.

	 	Charter Amendments
	 	 	11	 
	Section 2.06.

	 	Conflicting Charter Provisions
	 	 	11	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 3	 	 	 	 
	 

	 	Restrictions on Transfer	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.

	 	General
	 	 	11	 
	Section 3.02.

	 	Legends
	 	 	12	 
	Section 3.03.

	 	Permitted Transferees
	 	 	12	 
	Section 3.04.

	 	Restrictions on Transfers by the Institutional Shareholders
	 	 	12	 
	Section 3.05.

	 	Restrictions on Transfers by the Other Shareholders
	 	 	12	 
	Section 3.06.

	 	Restrictions on Transfer under a Credit Agreement, Indenture or Other Agreement for Indebtedness
	 	 	13	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 4	 	 	 	 
	 

	 	Tag-along Rights; Drag-along Rights	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.

	 	Rights to Participate in Transfer
	 	 	13	 
	Section 4.02.

	 	Right to Compel Participation in Certain Transfers
	 	 	16	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 5	 	 	 	 
	 

	 	Registration Rights	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.

	 	Demand Registration
	 	 	18	 
	Section 5.02.

	 	Incidental Registration
	 	 	20	 
	Section 5.03.

	 	Holdback Agreements
	 	 	21	 
	Section 5.04.

	 	Registration Procedures
	 	 	22	 
	Section 5.05.

	 	Indemnification by the Company
	 	 	25	 
	Section 5.06.

	 	Indemnification by Participating Shareholders
	 	 	25	 
	Section 5.07.

	 	Conduct of Indemnification Proceedings
	 	 	26	 
	Section 5.08.

	 	Contribution
	 	 	27	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 5.09.

	 	Participation in Public Offering
	 	 	28	 
	Section 5.10.

	 	Other Indemnification
	 	 	28	 
	Section 5.11.

	 	Cooperation by the Company
	 	 	28	 
	Section 5.12.

	 	No Transfer of Registration Rights
	 	 	28	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 6	 	 	 	 
	 

	 	Certain Covenants and Agreements	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.

	 	Confidentiality
	 	 	28	 
	Section 6.02.

	 	Information
	 	 	29	 
	Section 6.03.

	 	Reports
	 	 	31	 
	Section 6.04.

	 	Cooperation in Refinancing
	 	 	31	 
	Section 6.05.

	 	Appointment of Shareholder Representatives
	 	 	31	 
	Section 6.06.

	 	Decisions by Institutional Shareholders
	 	 	32	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 7	 	 	 	 
	 

	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01.

	 	Entire Agreement
	 	 	32	 
	Section 7.02.

	 	Binding Effect; Benefit
	 	 	32	 
	Section 7.03.

	 	Assignability
	 	 	33	 
	Section 7.04.

	 	Waiver; Amendment; Termination
	 	 	33	 
	Section 7.05.

	 	Notices
	 	 	33	 
	Section 7.06.

	 	Fees and Expenses
	 	 	34	 
	Section 7.07.

	 	Headings
	 	 	34	 
	Section 7.08.

	 	Counterparts
	 	 	34	 
	Section 7.09.

	 	Applicable Law
	 	 	35	 
	Section 7.10.

	 	Waiver of Jury Trial
	 	 	35	 
	Section 7.11.

	 	Specific Enforcement
	 	 	35	 
	Section 7.12.

	 	Consent to Jurisdiction
	 	 	35	 
	Section 7.13.

	 	Severability
	 	 	35	 
	Section 7.14.

	 	Recapitalization
	 	 	35	 
	Section 7.15.

	 	Limitations on Subsequent Registration Rights
	 	 	36	 
	Section 7.16.

	 	Conflicting Agreements
	 	 	36	 

ii

 

AMENDED AND RESTATED

SHAREHOLDERS’ AGREEMENT

     AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT dated as of April 16, 2007 (the “Agreement”)
among (i) SMART Modular Technologies (WWH), Inc., an exempted company incorporated under the laws
of the Cayman Islands (the “Company”), (ii) T3 II SM, LLC (“T3 II”), TPG III
SM, LLC (“TPG III”) and TPG IV SM, LLC (“TPG IV”) (taken together, the “TPG Entities,” and each of
the foregoing in this clause (ii), a “TPG Entity”), (iii) Francisco Partners, L.P. (“FP”),
Francisco Partners Fund A, L.P. (“FP Fund A”) and FP Annual Fund Investors, LLC (“FP Annual Fund”)
(taken together, the “FP Entities,” and each of the foregoing in this clause (iii), an “FP
Entity”), (iv) Shah Capital Partners, L.P. (“Shah Capital”), (v) WestRiver Capital LLC, (vi) Patel
Family Partners, L.P. and (vii) such additional persons as may sign joinder agreements to this
Agreement.

WITNESSETH:

     WHEREAS, the Company and the parties hereto previously entered into a Shareholder’s Agreement,
dated as of January 18, 2006 (the “Original Agreement”) in connection with the First Public
Offering (defined below);

     WHEREAS, as a result of a secondary offering of Ordinary Shares by the Shareholders, the
Company and the other parties hereto desire to amend and restate the Original Agreement; and

     WHEREAS, the parties hereto desire to enter into this Agreement to govern certain of their
rights, duties and obligations;

     NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties
hereto agree as follows:

ARTICLE 1

Definitions

     Section 1.01. Definitions. (a) The following terms, as used herein, have the following
meanings:

     “Adverse Person” means any Person whom the Board determines in good faith is a competitor or a
potential competitor of the Company or its Subsidiaries.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by or under common control with such Person, provided that no
securityholder of the Company shall be deemed an Affiliate of any other securityholder solely by
reason of any Investment in the Company. For the purpose of this definition, the term “control”
(including with correlative meanings, the terms “controlling,” “controlled by” and “under common
control with”), as used with respect to any Person, shall mean the possession, directly

1

 

or indirectly, of the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or otherwise.

     “Aggregate Ownership” means, with respect to any Shareholder or group of Shareholders, and
with respect to any class of Company Securities, the total amount of such class of Company
Securities “beneficially owned” (as such term is defined in Rule 13d-3 of the Exchange Act)
(without duplication) by such Shareholder or group of Shareholders as of the date of such
calculation, calculated on a Fully Diluted basis.

     “Aggregate Ownership Percentage” means, with respect to any Shareholder (or group of
Shareholders), and with respect to any class of Company Securities, the percentage equal to such
Shareholder’s (or group of Shareholders’) Aggregate Ownership of such class of Company Securities
divided by all outstanding Company Securities of such class, calculated on a Fully Diluted basis.

     “Board” means the board of directors of the Company.

     “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in San Francisco or New York City are authorized by law to close.

     “Charter” means the Amended and Restated Memorandum and Articles of Association of the
Company, as the same may be amended from time to time.

     “Company Securities” means (i) the Ordinary Shares, (ii) securities convertible into or
exchangeable for Ordinary Shares, and (iii) options, warrants or other rights to acquire Ordinary
Shares or any other equity or equity-linked security issued by the Company.

     “Distribution in Kind” means, with respect to the applicable Institutional Shareholder, (A)
any Transfer by any TPG Entities’ fund that is a partnership, limited liability company,
corporation or other entity of any of its Ordinary Shares to any partner, member, shareholder or
other constituent of such entity pursuant to a distribution that is made to such partner, member,
shareholder or other constituent in accordance with the respective partnership, limited liability
company agreement, certificate or articles of incorporation or other organizational document of
such any TPG Entities’ fund without payment of consideration therefor by such partner, member,
shareholder or other constituent, (B) any Transfer by any FP Entities’ fund that is a partnership,
limited liability company, corporation or other entity of any of its Ordinary Shares to any
partner, member, shareholder or other constituent of such entity pursuant to a distribution that is
made to such partner, member, shareholder or other constituent of such entity in accordance with
the respective partnership, limited liability company agreement, certificate or articles of
incorporation or other organizational document of such FP fund without payment of consideration
therefor by such partner, member, shareholder or other constituent, and (C) any Transfer by any
Shah Capital fund that is a partnership, limited liability company, corporation or other entity of
any of its Ordinary Shares to any partner, member, shareholder or other constituent of such entity
pursuant to a distribution that is made to such partner, member, shareholder or other constituent
of such entity in accordance with the respective partnership, limited liability company agreement,
certificate or articles of incorporation or other

2

 

organizational document of such Shah Capital fund without payment of consideration therefor by
such partner, member, shareholder or other constituent.

     “Drag-Along Portion” means, with respect to any Other Shareholder, (i) the Aggregate Ownership
of Ordinary Shares by such Other Shareholder multiplied by (ii) a fraction, the numerator of which
is the number of Ordinary Shares proposed to be sold by the Institutional Shareholders in the
applicable Compelled Sale under Section 4.02 and the denominator of which is the Aggregate
Ownership of Ordinary Shares by the Institutional Shareholders.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “First Public Offering” means the first Public Offering of Ordinary Shares.

     “Five Percent Shareholder” means a Shareholder whose Aggregate Ownership Percentage of
Ordinary Shares is 5% or more.

     “Foreign Subsidiary” means, with respect to the Company, any entity organized under the laws
of a jurisdiction other than a State of the United States of America of which securities or other
ownership interests having ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions are at the time directly or indirectly owned by the
Company.

     “Fully Diluted” means, with respect to any class of Company Securities, all outstanding shares
of such class of Company Securities and all shares issuable in respect of securities convertible
into or exchangeable for such shares, all stock appreciation rights, options, warrants and other
rights to purchase or subscribe for such Company Securities or securities convertible into or
exchangeable for such Company Securities; provided that if any of the foregoing stock appreciation
rights, options, warrants or other rights to purchase or subscribe for such Company Securities are
subject to vesting, the Company Securities subject to vesting shall be included in the definition
of “Fully Diluted” only upon and to the extent of such vesting.

     “Initial Ownership” means, (i) with respect to any Shareholder and any class of Company
Securities, the Aggregate Ownership of such class by such Shareholder as of the date of and after
giving effect to the First Public Offering of Company Securities, or, (ii) with respect to any
Person who shall become a party to this Agreement on a later date, such Person’s Aggregate
Ownership of such class as of such later date (as indicated on the joinder agreement signed by such
Person), in each case taking into account any stock split, stock dividend, reverse stock split or
similar event.

     “Institutional Shareholders” means the TPG Entities, the FP Entities and Shah Capital.

     “Investment” means, with respect to any Person, (i) any direct or indirect purchase or other
acquisition by such Person of any notes, obligations, instruments, stock, securities or ownership
interest (including any partnership, limited liability and joint venture interest) of any other
Person and (ii) any capital contribution by such Person to any other Person.

3

 

     “Ordinary Shares” means the Ordinary Shares, par value $0.000166667 per share, of the Company.

     “Other Shareholders” means all Shareholders other than the Institutional Shareholders.

     “Permitted Transferee” means

     (i) in the case of any TPG Entity and its Permitted Transferees, (A) any TPG Entity,
TPG Entities’ fund or co-investment partnership, (B) any general or limited partner of any
TPG Entity, TPG Entities’ fund or co-investment partnership (collectively, a “TPG
Partner”), and any corporation, partnership or other entity that is an Affiliate of any TPG
Partner (collectively “TPG Affiliates”), (C) any managing director, general partner,
director, limited partner, officer or employee of any TPG Entity, TPG Entities’ fund, any
TPG Partner or any TPG Affiliate, or any spouse, lineal descendant, sibling, parent, heir,
executor, administrator, testamentary trustee, legatee or beneficiary of any of the
foregoing persons described in this clause (C) (collectively, “TPG Associates”), and (D) any
trust, the beneficiaries of which, any charitable trust, the grantor of which, or any
corporation, limited liability company or partnership, the stockholders, members or general
or limited partners of which, include only the TPG Entities, TPG Partners, TPG Affiliates,
TPG Associates, their spouses or their lineal descendants;

     (ii) in the case of any FP Entity and its Permitted Transferees, (A) any FP Entity, FP
fund or co-investment partnership, (B) any general or limited partner of any FP Entity, FP
fund or co-investment partnership (collectively, an “FP Partner”), and any corporation,
partnership or other entity that is an Affiliate of any FP Partner (collectively “FP
Affiliates”), (C) any managing director, general partner, director, limited partner, officer
or employee of any FP Entity, FP fund, any FP Partner or any FP Affiliate, or any spouse,
lineal descendant, sibling, parent, heir, executor, administrator, testamentary trustee,
legatee or beneficiary of any of the foregoing persons described in this clause (C)
(collectively, “FP Associates”), and (D) any trust, the beneficiaries of which, any
charitable trust, the grantor of which, or any corporation, limited liability company or
partnership, the stockholders, members or general or limited partners of which, include only
the FP Entities, FP Partners, FP Affiliates, FP Associates, their spouses or their lineal
descendants;

     (iii) in the case of Shah Capital and its Permitted Transferees, (A) Shah Capital, any
Shah Capital fund or co-investment partnership, (B) any general or limited partner of Shah
Capital, any Shah Capital fund or co-investment partnership (collectively, a “Shah Capital
Partner”), and any corporation, partnership or other entity that is an Affiliate of any Shah
Capital Partner (collectively “Shah Capital Affiliates”), (C) any managing director, general
partner, director, limited partner, officer or employee of Shah Capital, any Shah Capital
fund, any Shah Capital Partner or any Shah Capital Affiliate, or any spouse, lineal
descendant, sibling, parent, heir, executor, administrator, testamentary trustee, legatee or
beneficiary of any of the foregoing persons described in this clause (C) (collectively,
“Shah Capital Associates”), and (D) any trust, the beneficiaries of which,

4

 

any charitable trust, the grantor of which, or any corporation, limited liability
company or partnership, the stockholders, members or general or limited partners of which,
include only Shah Capital, Shah Capital Partners, Shah Capital Affiliates, Shah Capital
Associates, their spouses or their lineal descendants; and

     (iv) in the case of any Other Shareholder that is or becomes a party to this Agreement,
(A) a Person to whom Company Securities are Transferred from such Other Shareholder (1) by
will or the laws of descent and distribution or (2) by gift without consideration of any
kind, provided that, in the case of clause (2), such transferee is the spouse or the lineal
descendant, sibling or parent of such Shareholder, or (B) a trust that is for the exclusive
benefit of such Other Shareholder or its Permitted Transferees under (A) above.

     “Person” means an individual, corporation, limited liability company, partnership,
association, trust or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof.

     “Public Offering” means an underwritten public offering of Registrable Securities of the
Company pursuant to an effective registration statement under the Securities Act other than
pursuant to a registration statement on Form S-4 or Form S-8 or any similar or successor form.

     “Registrable Securities” means, at any time, any Ordinary Shares and any securities issued or
issuable in respect of such Ordinary Shares by way of conversion, exchange, stock dividend, split
or combination, recapitalization, merger, consolidation, other reorganization or otherwise until
(i) a registration statement covering such Ordinary Shares has been declared effective by the SEC
and such Ordinary Shares have been disposed of pursuant to such effective registration statement,
(ii) such Ordinary Shares are sold under circumstances in which all of the applicable conditions of
Rule 144 (or any similar provisions then in force) under the Securities Act are met or (iii) such
Ordinary Shares are otherwise transferred, the Company has delivered a new certificate or other
evidence of ownership for such Ordinary Shares not bearing the legend required pursuant to this
Agreement and such Ordinary Shares may be resold without subsequent registration under the
Securities Act.

     “Registration Expenses” means any and all expenses incident to the performance of or
compliance with any registration or marketing of securities, including all (i) registration and
filing fees, and all other fees and expenses payable in connection with the listing of securities
on any securities exchange or automated interdealer quotation system, (ii) fees and expenses of
compliance with any securities or “blue sky” laws (including reasonable fees and disbursements of
counsel in connection with “blue sky” qualifications of the securities registered), (iii) expenses
in connection with the preparation, printing, mailing and delivery of any registration statements,
prospectuses and other documents in connection therewith and any amendments or supplements thereto,
(iv) security engraving and printing expenses, (v) internal expenses of the Company (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), (vi) fees and disbursements of counsel for the Company and customary fees and
expenses for independent certified public accountants retained by the Company (including the
expenses relating to any comfort letters or costs associated with the

5

 

delivery by independent certified public accountants of any comfort letters requested pursuant
to Section 5.04(h) hereof), (vii) reasonable fees and expenses of any special experts retained by
the Company in connection with such registration, (viii) fees, out-of-pocket costs and expenses of
the Shareholders, including one counsel for all of the Shareholders participating in the offering
selected (A) by the participating Institutional Shareholders, in the case of any offering in which
any of the Institutional Shareholders participate, or (B) in any other case, by the Shareholders
holding the majority of the Registrable Securities to be sold for the account of all Shareholders
in the offering, (ix) fees and expenses in connection with any review by the National Association
of Securities Dealers, Inc. (the “NASD”) of the underwriting arrangements or other terms of the
offering, and all fees and expenses of any “qualified independent underwriter,” including the fees
and expenses of any counsel thereto, (x) fees and disbursements of underwriters customarily paid by
issuers or sellers of securities, but excluding any underwriting fees, discounts and commissions
attributable to the sale of Registrable Securities, (xi) costs of printing and producing any
agreements among underwriters, underwriting agreements, any “blue sky” or legal investment
memoranda and any selling agreements and other documents in connection with the offering, sale or
delivery of the Registrable Securities, (xii) transfer agents’ and registrars’ fees and expenses
and the fees and expenses of any other agent or trustee appointed in connection with such offering,
(xiii) expenses relating to any analyst or investor presentations or any “road shows” undertaken in
connection with the registration, marketing or selling of the Registrable Securities, (xiv) fees
and expenses payable in connection with any ratings of the Registrable Securities, including
expenses relating to any presentations to rating agencies and (xv) all out-of pocket costs and
expenses incurred by the Company or its appropriate officers in connection with their compliance
with Section 5.04(m).

     “Rule 144” means Rule 144 (or any successor provisions) under the Securities Act.

     “Rule 144A” means Rule 144A (or any successor provisions) under the Securities Act.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Sell-down Percentage” means, with respect to any Shareholder (or group of Shareholders), and
with respect to any class of Company Securities, the percentage equal to such Shareholder’s (or
group of Shareholders’) Aggregate Ownership of such class of Company Securities divided by such
Shareholder’s (or group of Shareholders’) Initial Ownership of such class of Company Securities.

     “Shareholder” means at any time, any Person (other than the Company) who shall then be a party
to or bound by this Agreement, so long as such Person shall “beneficially own” (as such term is
defined in Rule 13d-3 of the Exchange Act) any Company Securities.

     “Shortform Registration” means a registration statement on Form S-3 (or any successor form
thereto).

     “Subsidiary” means, with respect to any Person, any entity of which securities or other
ownership interests having ordinary voting power to elect a majority of the board of directors or

6

 

other persons performing similar functions are at the time directly or indirectly owned by
such Person.

     “Tag-Along Portion” means the product of the Aggregate Ownership of Ordinary Shares by the
Tagging Person immediately prior to such Transfer and a fraction the numerator of which is the
maximum number of Ordinary Shares that the buyer in the Tag-Along Sale is willing to purchase, and
the denominator of which is the Aggregate Ownership of Ordinary Shares by all Shareholders.

     “Third Party” means a prospective purchaser(s) (other than a Permitted Transferee or other
Affiliate of a Shareholder) of Company Securities in an arm’s-length transaction from such
Shareholder.

     “Transfer” means, with respect to any Company Security, (i) when used as a verb, to sell,
assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such security or
any participation or interest therein, whether directly or indirectly, or agree or commit to do any
of the foregoing and (ii) when used as a noun, a direct or indirect sale, assignment, disposition,
exchange, pledge, encumbrance, hypothecation or other transfer of such security or any
participation or interest therein or any agreement or commitment to do any of the foregoing.

     (b) The term “Institutional Shareholder,” to the extent such entity shall have transferred any
of its Company Securities to any of its “Permitted Transferees,” shall mean the Institutional
Shareholder and such Permitted Transferees, taken together.

     (c) Each of the following terms is defined in the Section set forth opposite such term:

	 	 	 
	Term	 	Section
	 
	 	 
	Additional Directors
	 	2.01(a)
	Agreement
	 	Preamble
	Applicable Holdback Period
	 	5.03
	Cause
	 	2.02
	Company
	 	Preamble
	Compelled Sale
	 	4.02(a)
	Compelled Sale Notice
	 	4.02(a)
	Compelled Sale Notice Period
	 	4.02(a)
	Compelled Sale Price
	 	4.02(a)
	Confidential Information
	 	6.01(b)
	Demand Registration
	 	5.01(a)
	Drag-Along Rights
	 	4.02(a)
	Eligible Shareholder
	 	4.01(a)
	Escrow Amount
	 	4.01(f)
	Escrow Notice
	 	4.01(f)
	FP
	 	Preamble
	FP Annual Fund
	 	Preamble
	FP Fund A
	 	Preamble

7

 

	 	 	 
	Term	 	Section
	 
	 	 
	FP Entities
	 	Preamble
	FP Entity
	 	Preamble
	FP Shareholder Representative
	 	6.05(b)
	Holders
	 	5.01(a)
	Incidental Registration
	 	5.02(a)
	Indemnified Party
	 	5.07
	Indemnifying Party
	 	5.07
	Inspectors
	 	5.04(g)
	Maximum Offering Size
	 	5.01(e)
	Non-Requesting Shareholder
	 	5.01(a)
	Original Agreement
	 	Recitals
	Records
	 	5.04(g)
	Replacement Nominee
	 	2.03(a)
	Representatives
	 	6.01(b)
	Requesting Shareholder
	 	5.01(a)
	Shah Capital
	 	Preamble
	Shah Capital Shareholder Representative
	 	6.05(c)
	T3 II
	 	Preamble
	Tag-Along Notice
	 	4.01(a)
	Tag-Along Notice Period
	 	4.01(a)
	Tag-Along Offer
	 	4.01(a)
	Tag-Along Response Notice
	 	4.01(a)
	Tag-Along Right
	 	4.01(a)
	Tag-Along Sale
	 	4.01(a)
	Tag-Along Seller
	 	4.01(a)
	Tagging Person
	 	4.01(a)
	TPG III
	 	Preamble
	TPG IV
	 	Preamble
	TPG Entities
	 	Preamble
	TPG Entity
	 	Preamble
	TPG Shareholder Representative
	 	6.05(a)
	Unused Tag Amount
	 	4.01(d)

ARTICLE 2

Corporate Governance

     Section 2.01. Composition of the Board. (a) The Board shall consist of nine directors, and
the Shareholders agree that the directors shall be nominated as follows: (i) so long as the TPG
Entities’ Aggregate Ownership Percentage of Ordinary Shares is at least 10%, up to two directors
will be nominated by the TPG Entities, acting collectively, and so long as the TPG Entities’
Aggregate Ownership Percentage of Ordinary Shares is at least 5%, one director will be nominated by
the TPG Entities, acting collectively; (ii) so long as the FP Entities’ Aggregate Ownership
Percentage of Ordinary Shares is at least 10%, up to two directors will be nominated by the FP
Entities, acting collectively, and so long as the FP Entities’ Aggregate Ownership

8

 

Percentage of Ordinary Shares is at least 5%, one director will be nominated by the FP
Entities, acting collectively; (iii) so long as Shah Capital’s Aggregate Ownership Percentage of
Ordinary Shares is at least 5%, one director will be nominated by Shah Capital, (iv) the Chief
Executive Officer of the Company will be nominated by the Shareholders, acting collectively; and
(v) three directors will be nominated by the Chief Executive Officer and the Institutional
Shareholders together; provided that, to the extent required under the Exchange Act rules and the
rules of the securities exchange or quotation system on which the Ordinary Shares are traded, each
such director nominated pursuant to this clause (v) shall (x) not be an “Affiliate” or an
“Associate” (as such terms are used within the meaning of Rule 12b-2 under the Exchange Act) of any
of the Institutional Shareholders and (y) be an “independent director,” as such term is defined by
the rules of the securities exchange or quotation system on which the Ordinary Shares are traded.
If the number of directors that comprise the entire Board is increased, the number of directors
added to the Board (the “Additional Directors”) must be a multiple of two, and the Institutional
Shareholders shall continue to be entitled to nominate a majority of the Board as provided in this
Section 2.01.

     (b) Each Shareholder entitled to vote for the election of directors to the Board agrees that
it will vote its Ordinary Shares or execute a proxy or written consent, as the case may be, and
take all other necessary action in order to ensure (including causing the Company to call a special
meeting of Shareholders), to the extent possible, that the composition of the Board is as set forth
in this Section 2.01.

     The Company agrees to take all other necessary actions (including calling a special meeting of
the Board and/or Shareholders) to ensure, to the extent possible, that the nominations to the Board
are as contemplated by this Section 2.01.

     Section 2.02. Removal. Each Shareholder agrees that if at any time it is then entitled to
vote for the removal of directors from the Board, it will not vote any of its Ordinary Shares in
favor of the removal of any director who shall have been nominated in accordance with Section 2.01
hereof, unless such removal shall be for Cause or the Person or Persons entitled to nominate such
director shall have consented to such removal in writing; provided that if the Person or Persons
entitled to nominate any director pursuant to Section 2.01 hereof shall request in writing the
removal, with or without Cause, of such director, such Shareholder shall vote its Ordinary Shares
in favor of such removal. Removal for “Cause” shall mean removal of a director because of such
director’s (a) willful and continued failure substantially to perform his or her statutory or
fiduciary duties to the Company in his or her established position, (b) participation in a fraud,
act of dishonesty or other misconduct that is injurious, monetarily or otherwise, to the Company or
any of its Subsidiaries, (c) having been charged with or pleading guilty to a felony or a crime
involving fraud or dishonesty, (d) violation of any state or federal law that has an adverse effect
on the Company or (e) abuse of illegal drugs or other controlled substances or habitual
intoxication.

     Section 2.03. Vacancies. If, as a result of death, disability, retirement, resignation,
removal (with or without Cause) or otherwise, there shall exist or occur any vacancy on the Board:

9

 

     (a) the Person or Persons entitled under Section 2.01 hereof to nominate such director whose
death, disability, retirement, resignation or removal resulted in such vacancy may, subject to the
provisions of Section 2.01 hereof, nominate another individual (the “Replacement Nominee”) to fill
such vacancy and serve as a director on the Board; and

     (b) subject to Section 2.01 hereof, each Shareholder then entitled to vote for the election of
the Replacement Nominee as a director of the Company agrees that it will vote its Ordinary Shares,
or execute a proxy or written consent, as the case may be, in order to ensure that the Replacement
Nominee be elected to the Board.

     Section 2.04. Action by the Board; Shareholders. Until such time as the Institutional
Shareholders collective Aggregate Ownership Percentage of Ordinary Shares is less than 25%, (1) no
action by the Company (including but not limited to any action by the Board or any committee
thereof) shall be taken with respect to any of the following matters without the prior written
consent of the Institutional Shareholders, acting collectively:

     (i) the declaration of any dividend on or the making of any distribution with respect
to, or the recapitalization, reclassification, redemption, repurchase or other acquisition
of, any securities of the Company or any Subsidiary (other than intra company dividends and
distributions), except as expressly permitted by this Agreement;

     (ii) any incurrence, refinancing, alteration of material terms or prepayment by the
Company or any Subsidiary of indebtedness for borrowed money in excess of $10,000,000 in the
aggregate (or the guaranty by the Company or any Subsidiary of any such indebtedness);

     (iii) any approval of the annual business plan, budget and long-term strategic plan of
the Company or any Subsidiary;

     (iv) any modification of the long-term business strategy or scope of the business of
the Company or any Subsidiary or any material customer relationships thereof;

     (v) (A) any merger or consolidation of the Company with or into any Person, other than
a wholly owned Subsidiary, or of any Subsidiary with or into any Person other than the
Company or any other wholly owned Subsidiary, or (B) any sale of the Company or any
Subsidiary or any significant operations of the Company or any Subsidiary or any joint
venture transaction, acquisition or disposition of assets, business, operations or
securities by the Company or any Subsidiary (in a single transaction or a series of related
transactions) having a value in each case in this clause (B) in excess of $10,000,000;

     (vi) any liquidation, dissolution, commencement of bankruptcy, liquidation or similar
proceedings with respect to the Company or any Subsidiary (other than with respect to
inactive or otherwise immaterial Subsidiaries);

10

 

     (vii) the issuance of any security by the Company or any Subsidiary (not including
issuances of such securities in connection with employee or stock option plans previously
approved by the Board or by any Subsidiary to the Company or other wholly-owned Subsidiary
of the Company), other than as specifically contemplated by this Agreement;

     (viii) any determination of compensation, benefits, perquisites and other incentives
for the Chief Executive Officer, President or the Chief Financial Officer of the Company or
its Subsidiaries and the approval or amendment of any plans or contracts in connection
therewith, and any approval or amendment to any equity or other compensation or benefit
plans for employees of the Company or its Subsidiaries;

     (ix) any appointment or dismissal of any of the Chief Executive Officer, President,
Chief Financial Officer or any other executive officer in any similar capacity of the
Company or any Subsidiary; or

     (x) any increase or decrease to the number of Directors that comprise the entire Board
of the Company; and

     (2) the Company (including but not limited to any action by the Board or any committee
thereof) shall not, nor permit any of its Subsidiaries to, without the prior written consent of
each Institutional Shareholder, enter into or amend, modify or supplement, any material agreement,
transaction or arrangement with any holder of 5% or more of the Company’s equity securities,
executive officers, directors or Affiliates thereof or any individual related by blood, marriage or
adoption to any such individual or with any entity in which any such Person or individual owns a
beneficial interest of 5% or more, except as otherwise expressly contemplated by this Agreement.

     Section 2.05. Charter Amendments. Each Shareholder entitled to vote for any amendment to
the Charter or any adoption of or amendment to the certificate of incorporation or bylaws of any
Subsidiary, agrees that it will not vote nor execute a proxy or written consent, as the case may
be, in favor of any such amendment or adoption unless each Institutional Shareholder has provided
prior written consent to such amendment or adoption.

     Section 2.06. Conflicting Charter Provisions. Each Shareholder shall vote its Ordinary
Shares or execute proxies or written consents, as the case may be, and shall take all other actions
necessary to ensure, to the extent possible, that the Charter (i) facilitates, and does not at any
time conflict with, any provision of this Agreement and (ii) permits each Shareholder to receive
the benefits to which each such Shareholder is entitled under this Agreement.

ARTICLE 3

Restrictions on Transfer

     Section 3.01. General. Each Shareholder understands and agrees that the Company Securities
acquired prior to the date of this Agreement were not acquired in a transaction

11

 

registered under the Securities Act and are restricted securities under such Act and the rules
and regulations promulgated thereunder. Each Shareholder agrees that it will not Transfer any
Company Securities (or solicit any offers in respect of any Transfer of any Company Securities),
except in compliance with the Securities Act, any applicable foreign or state securities or “blue
sky” laws, and the terms and conditions of this Agreement.

     Section 3.02. Legends. (a) In addition to any other legend that may be required, each
certificate for Company Securities that is issued to any Shareholder shall bear a legend in
substantially the following form:

     “THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
FOREIGN OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE THEREWITH.
THIS SECURITY IS ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE
SHAREHOLDERS’ AGREEMENT DATED AS OF JANUARY 18, 2006, COPIES OF WHICH MAY BE OBTAINED UPON REQUEST
FROM SMART MODULAR TECHNOLOGIES (WWH), INC. OR ANY SUCCESSOR THERETO.”

     (b) If any Company Securities shall cease to be Registrable Securities under clause (i) or
clause (ii) of the definition thereof, the Company, upon the written request of the holder thereof,
shall issue to such holder a new certificate evidencing such shares without the first sentence of
the legend required by Section 3.02(a) hereof endorsed thereon. If any Company Securities cease to
be subject to any and all restrictions on Transfer set forth in this Agreement, the Company, upon
the written request of the holder thereof, shall issue to such holder a new certificate evidencing
such Company Securities without the second sentence of the legend required by Section 3.02(a)
hereof endorsed thereon.

     Section 3.03. Permitted Transferees. Notwithstanding anything in this Agreement to the
contrary, each Shareholder may at any time Transfer any or all of its Company Securities to one or
more of its Permitted Transferees without the consent of the Board or any other Shareholder or
group of Shareholders and without compliance with Sections 3.04, 3.05, 4.01 and 4.02 so long as the
Transfer to such Permitted Transferee is not in violation of applicable federal or state securities
laws.

     Section 3.04. Restrictions on Transfers by the Institutional Shareholders. (a) [Reserved]

     (b) No Institutional Shareholder shall Transfer Company Securities to an Adverse Person (other
than by Transfer pursuant to Section 4.02, in a Public Offering or through a national securities
exchange) at any time.

     Section 3.05. Restrictions On Transfers By The Other Shareholders. (a) [Reserved]

     (b) No Other Shareholder shall Transfer Company Securities to an Adverse Person (other than by
Transfer pursuant to Section 4.02, in a Public Offering or through a national securities exchange)
at any time.

12

 

     Section 3.06. Restrictions on Transfer under a Credit Agreement, Indenture or Other
Agreement for Indebtedness. Notwithstanding the foregoing provisions of this Article 3, if a
Transfer otherwise permitted hereunder would trigger, under the terms of any outstanding (as of the
date hereof) credit agreement, indenture or any other agreement for indebtedness of the Company,
(i) a change of control requiring repayment or (ii) other adverse consequence, then such Transfer
shall be prohibited.

ARTICLE 4

Tag-along Rights; Drag-along Rights

     Section 4.01. Rights to Participate in Transfer. (a) Subject to Sections 3.03, 3.04, 3.06
and 4.01(h), if any Shareholder or group of Shareholders (such Shareholder or group of
Shareholders, the “Tag-Along Seller”) proposes to Transfer any number of Ordinary Shares (a
“Tag-Along Sale”), the Shareholders other than the Tag-Along Seller (each, an “Eligible
Shareholder”) may elect, at their option, to exercise their rights under this Section 4.01 (each
such Shareholder, a “Tagging Person”).

     In the event of such a proposed Transfer, the Tag-Along Seller shall provide each Eligible
Shareholder written notice of the terms and conditions of such proposed transfer (“Tag-Along
Notice”) and offer each Tagging Person the opportunity to participate in such sale. The Tag-Along
Notice shall identify the number of Ordinary Shares subject to the offer (“Tag-Along Offer”), the
cash price at which the Transfer is proposed to be made, and all other material terms and
conditions of the Tag-Along Offer, including the form of the proposed agreement, if any.

     From the date of the receipt of the Tag-Along Notice, each Tagging Person shall have the right
(a “Tag-Along Right”), exercisable by written notice (“Tag-Along Response Notice”) given to the
Tag-Along Seller within seven Business Days after its receipt of the Tag-Along Notice (the
“Tag-Along Notice Period”), to request that the Tag-Along Seller include in the proposed Transfer
the number of Ordinary Shares held by such Tagging Person as is specified in such notice, provided
that, if the aggregate number of Ordinary Shares proposed to be sold by the Tag-Along Seller and
all Tagging Persons in such transaction exceeds the number of Ordinary Shares that can be sold on
the terms and conditions set forth in the Tag-Along Notice, then (i) each Tagging Person shall be
entitled to include in the Tag-Along Sale only its Tag-Along Portion of Ordinary Shares and (ii)
the Tag-Along Seller shall be entitled to include the number of Ordinary Shares proposed to be
Transferred by the Tag-Along Seller as set forth in the Tag-Along Notice (reduced, to the extent
necessary, so that each Tagging Person shall be able to include its Tag-Along Portion) and such
additional Ordinary Shares as permitted by Section 4.01(d). Each Tagging Person that exercises its
Tag-Along Rights hereunder shall deliver to the Tag-Along Seller, together with its Tag-Along
Response Notice, the certificate or certificates representing the Ordinary Shares of such Tagging
Person to be included in the Transfer, together with a limited power-of-attorney authorizing the
Tag-Along Seller to Transfer such Ordinary Shares on the terms set forth in the Tag-Along Notice.
Delivery of such certificate or certificates representing the Ordinary Shares to be Transferred and
the limited power-of-attorney authorizing the Tag-Along Seller to Transfer such Ordinary Shares
shall constitute an irrevocable acceptance of the Tag-Along Offer by such Tagging Persons. Each
Tag-Along Response Notice shall

13

 

include wire transfer instructions for payment of the purchase price for the Ordinary Shares
to be sold in such Tag-Along Sale. The Tagging Persons shall (a) be required (i) to bear their
proportionate share of any escrows, holdbacks or adjustments in purchase price and any transaction
expenses and (ii) to make such representations, warranties and covenants and enter into such
agreements as are customary for transactions of the nature of the Tag-Along Offer, in each case
under the terms of any definitive agreement(s) relating to such Tag-Along Offer and (b) benefit
from all of the same provisions of the definitive agreements as the Tag-Along Seller, it being
understood that any liability of any Tagging Person for indemnification or similar post-closing
obligations shall not exceed the consideration such Tagging Person receives in the Tag-Along Sale
and shall not exceed a proportional share of any such liability based on such Tagging Person’s
share of the aggregate consideration in the Tag-Along Sale.

     If, at the end of a 90-day period after such delivery (which 90-day period shall be extended
if any of the transactions contemplated by the Tag-Along Offer are subject to regulatory approval
until the expiration of five Business Days after all such approvals have been received, but in no
event later than 180 days following receipt of the Tag-Along Response Notice by the Tag-Along
Seller), the Tag-Along Seller has not completed the Transfer of all such Ordinary Shares on
substantially the same terms and conditions set forth in the Tag-Along Notice, the Tag-Along Seller
shall (i) return to each Tagging Person the limited power-of-attorney (and all copies thereof)
together with all certificates representing the Ordinary Shares that such Tagging Person delivered
for Transfer pursuant to this Section 4.01(a) and (ii) not conduct any Transfer of Ordinary Shares
without again complying with this Section.

     (b) Concurrently with the consummation of the Tag-Along Sale, the Tag-Along Seller shall
notify the Tagging Persons thereof, shall remit to the Tagging Persons the total consideration (by
bank or certified check) for the Ordinary Shares of the Tagging Persons transferred pursuant
thereto, and shall, promptly after the consummation of such Tag-Along Sale, furnish such other
evidence of the completion and time of completion of such transfer and the terms thereof as may be
reasonably requested by the Tagging Persons.

     (c) If at the termination of the Tag-Along Notice Period any Eligible Shareholder shall not
have elected to participate in the Tag-Along Sale, such Eligible Shareholder will be deemed to have
waived its rights under Section 4.01(a) with respect to the Transfer of its securities pursuant to
such Tag-Along Sale.

     (d) If (i) any Eligible Shareholder declines to exercise its Tag-Along Rights or (ii) any
Tagging Person elects to exercise its Tag-Along Rights with respect to less than such Tagging
Person’s Tag-Along Portion, the Tag-Along Seller shall be entitled to Transfer, pursuant to the
Tag-Along Offer, a number of Ordinary Shares held by it equal to the Unused Tag Amount (reduced to
the extent necessary so that each Tagging Person who has elected to exercise its Tag-Along Rights
for the full amount of its Tag-Along Portion shall be able to include its Tag-Along Portion with
respect to the Unused Tag Amount) and each Tagging Person who has elected to exercise its Tag-Along
Rights for the full amount of its Tag-Along Portion shall be entitled to Transfer in the Tag-Along
Sale its Tag-Along Portion of the Unused Tag Amount. “Unused Tag Amount” means the number of
Ordinary Shares constituting the sum of (i) the Tag-Along Portion of any Eligible Shareholder that
declined to exercise its Tag-Along Rights and (ii) the

14

 

portion of the Tag-Along Portion with respect to which Tag-Along Rights were not exercised by
any Tagging Person that exercised its Tag-Along Rights with respect to less than such Tag-Along
Person’s Tag-Along Portion.

     (e) The Tag-Along Seller may Transfer, on behalf of itself and any Tagging Person who
exercises the Tag-Along Rights pursuant to this Section 4.01(a), the Ordinary Shares subject to the
Tag-Along Offer and elected to be Transferred on the terms and conditions set forth in the
Tag-Along Notice within 90 days (or such longer period as extended under Section 4.01(a)) of the
date on which all Tag-Along Rights shall have been waived, exercised or expire; provided that, if
such Tag-Along Sale is subject to regulatory approval, such 90 day period shall be extended until
the expiration of five Business Days after all such approvals have been received, but in no event
later than 180 days following the effective date of the Tag-Along Sale Notice.

     (f) Notwithstanding the requirements of this Section 4.01, a Tag-Along Seller may Transfer
Ordinary Shares at any time without complying with the requirements of paragraphs (a) and (b) of
Section 4.01 so long as such Transfer is solely for cash and the Tag-Along Seller deposits into
escrow with an independent third party at the time of Transfer that amount of the consideration
received in the sale equal to the Escrow Amount. The “Escrow Amount” shall equal that amount of
consideration that all the Eligible Shareholders would have been entitled to receive if each of the
Eligible Shareholders had the opportunity to participate in the Transfer as a Tagging Person to the
extent of its Tag-Along Portion, determined as if each such Eligible Shareholder (i) delivered a
Tag-Along Response Notice to the Tag-Along Seller in the time period set forth in Section 4.01(a)
and (ii) proposed to include all of its Ordinary Shares which it would have been entitled to
include in the Transfer.

     No later than the date of the Transfer, the Tag-Along Seller shall notify the Company in
writing of the proposed Transfer. Such notice (the “Escrow Notice”) shall set forth the
information required in the Tag-Along Notice, and in addition, such notice shall state the name of
the escrow agent and the account number of the escrow account. The Company shall promptly, and in
any event within 10 days, deliver or cause to be delivered the Escrow Notice to each Eligible
Shareholder.

     An Eligible Shareholder may exercise the tag-along right described in this clause (f) by
delivery to the Tag-Along Seller, within seven Business Days of the date after the Company
delivered or caused to be delivered the Escrow Notice, of (i) a written notice specifying the
number of Ordinary Shares it proposes to sell (which such number shall not exceed such Eligible
Shareholder’s Tag-Along Portion), and (ii) the certificates representing such securities, with
transfer powers duly endorsed in blank.

     Promptly after the expiration of the seventh Business Day after the Company has delivered or
caused to be delivered the Escrow Notice, (i) the Tag-Along Seller shall purchase that number of
Ordinary Shares as the Tag-Along Seller would have been required to include in the sale had the
Tag-Along Seller complied with the provisions of Section 4.01(a), (ii) the Company shall cause to
be released from the escrow to the Eligible Shareholder from whom the Tag-Along Seller purchases
Ordinary Shares pursuant to clause (i) of this paragraph the applicable amount of consideration due
to such Eligible Shareholder together with any interest

15

 

thereon, and (iii) all remaining funds and other consideration held in escrow shall be
released to the Tag-Along Seller.

     (g) Notwithstanding anything contained in this Section 4.01, there shall be no liability on
the part of the Tag-Along Seller to the Tagging Persons (other than the obligation to return any
certificates evidencing Ordinary Shares received by the Tag-Along Seller) if the Transfer of
Ordinary Shares pursuant to this Section 4.01 is not consummated for whatever reason. Whether to
effect a Transfer of Ordinary Shares pursuant to this Section 4.01 by the Tag-Along Seller is in
the sole and absolute discretion of the Tag-Along Seller.

     (h) The provisions of this Section 4.01 shall not apply to any proposed Transfer of Ordinary
Shares by the Tag-Along Seller (A) in a Public Offering or pursuant to Rule 144 or (B) pursuant to
Section 3.03 or 4.02.

     (i) This Section 4.01 shall terminate upon the earlier to occur of (i) January 18, 2009 and
(ii) the date on which the Aggregate Ownership of Ordinary Shares by the Institutional Shareholders
collectively falls below 30% of the aggregate Initial Ownership of Ordinary Shares by such
Institutional Shareholders.

     Section 4.02. Right to Compel Participation in Certain Transfers. (a) If the Institutional
Shareholders collectively propose (i) to Transfer not less than 50% of their Initial Ownership of
Ordinary Shares to a Third Party in a bona fide sale or (ii) a Transfer in which the Ordinary
Shares to be Transferred by the Institutional Shareholders collectively, plus the Ordinary Shares
to be Transferred by the Other Shareholders pursuant to this Section 4.02(a), constitute more than
50% of the outstanding Ordinary Shares (a “Compelled Sale”), the Institutional Shareholders
collectively may at their option require all Other Shareholders to Transfer the Drag-Along Portion
of Ordinary Shares (“Drag-Along Rights”) then held by every Other Shareholder and, at the closing
of the Compelled Sale, to exercise such number of options or warrants for Ordinary Shares held by
every Other Shareholder as is required in order that a sufficient number of Ordinary Shares are
available to Transfer the relevant Drag-Along Portion of each such Other Shareholder, for the same
consideration per Ordinary Share and otherwise on the same terms and conditions as the
Institutional Shareholders, provided that any Other Shareholder who holds options or warrants the
exercise price per share of which is greater than the per share price at which the Ordinary Shares
are to be Transferred to the Third Party may, if required by the Institutional Shareholders to
exercise such options, in place of such exercise, submit to irrevocable cancellation thereof
without any liability for payment of any exercise price with respect thereto. If the Compelled
Sale is not consummated with respect to any Ordinary Shares acquired upon exercise of such options
or warrants, or the Compelled Sale is not consummated, such options or warrants shall be deemed not
to have been exercised or canceled, as applicable. The Institutional Shareholders shall provide
written notice of such Compelled Sale to the Other Shareholders (a “Compelled Sale Notice”) not
later than the 15th day prior to the proposed Compelled Sale. The Compelled Sale Notice shall
identify the transferee, the number of Ordinary Shares subject to the Compelled Sale, the
consideration for which a Transfer is proposed to be made (the “Compelled Sale Price”) and all
other material terms and conditions of the Compelled Sale. The number of Ordinary Shares to be
sold by each Other Shareholder

16

 

will be the Drag-Along Portion of the Ordinary Shares that such Other Shareholder owns. Each
Other Shareholder shall be required to participate in the Compelled Sale on the terms and
conditions set forth in the Compelled Sale Notice and to tender its Ordinary Shares as set forth
below. The price payable in such Transfer shall be the Compelled Sale Price. Not later than the
10th day following the date of the Compelled Sale Notice (the “Compelled Sale Notice Period”), each
of the Other Shareholders shall deliver to a representative of the Institutional Shareholders
designated in the Compelled Sale Notice certificates, and in the case of warrants, the applicable
instrument, representing all Company Securities comprising the Drag-Along Portion held by such
Other Shareholder, duly endorsed, together with all other documents required to be executed in
connection with such Compelled Sale or, if such delivery is not permitted by applicable law, an
unconditional agreement to deliver such Company Securities pursuant to this Section 4.01(a) at the
closing for such Compelled Sale against delivery to such Other Shareholder of the consideration
therefor. If an Other Shareholder should fail to deliver such certificates or other applicable
instruments to the Institutional Shareholders, the Company (subject to reversal under Section
4.02(b)) shall cause the books and records of the Company to show that such Company Securities are
bound by the provisions of this Section 4.02(a) and that such Company Securities shall be
Transferred to the Third Party immediately upon surrender for Transfer by the holder thereof. The
Other Shareholders shall (a) be required (i) to bear their proportionate share of any escrows,
holdbacks or adjustments in purchase price and any transaction expenses and (ii) to make such
representations, warranties and covenants and enter into such agreements as are customary for
transactions of the nature of the Compelled Sale, in each case under the terms of any definitive
agreements relating to such Compelled Sale and (b) benefit from all of the same provisions of the
definitive agreements as the Institutional Shareholders, it being understood that any liability of
any Other Shareholder for indemnification or similar post-closing obligations shall not exceed the
consideration such Other Shareholder receives in the Compelled Sale and shall be a proportional
share of any such liability based on such Other Shareholder’s share of the aggregate consideration
in the Compelled Sale.

     (b) The Institutional Shareholders shall have a period of 90 days from the date of receipt of
the Compelled Sale Notice to consummate the Compelled Sale on the terms and conditions set forth in
such Compelled Sale Notice, provided that, if such Compelled Sale is subject to regulatory
approval, such 90-day period shall be extended until the expiration of five Business Days after all
such approvals have been received, but in no event later than 180 days following the effective date
of the Compelled Sale Notice. If the Compelled Sale shall not have been consummated during such
period, the Institutional Shareholders shall return to each of the Other Shareholders all
certificates or other applicable instruments representing Company Securities that such Other
Shareholders delivered for Transfer pursuant hereto, together with any documents in the possession
of the Institutional Shareholders executed by the Other Shareholders in connection with such
proposed Transfer, and all the restrictions on Transfer contained in this Agreement or otherwise
applicable at such time with respect to such Company Securities owned by the Other Shareholders
shall again be in effect.

     (c) Concurrently with the consummation of the Transfer of Company Securities pursuant to this
Section 4.02, the Institutional Shareholders shall give notice thereof to the Other Shareholders,
shall remit to each of the Other Shareholders who have surrendered their certificates or other
applicable instruments the total consideration (the cash portion of which is to

17

 

be paid by bank or certified check) for the Company Securities Transferred pursuant hereto and
shall furnish such other evidence of the completion and time of completion of such Transfer
and the terms thereof as may be reasonably requested by such Other Shareholders.

     (d) Notwithstanding anything contained in this Section 4.02, there shall be no liability on
the part of the Institutional Shareholders to the Other Shareholders (other than the obligation to
return any certificates or other applicable instruments representing Company Securities received by
any Institutional Shareholders) if the Transfer of Company Securities pursuant to this Section
4.02 is not consummated for whatever reason, regardless of whether the Institutional Shareholders
have delivered a Compelled Sale Notice. Whether to effect a Transfer of Company Securities
pursuant to this Section 4.02 by the Institutional Shareholders is in the sole and absolute
discretion of the Institutional Shareholders.

     (e) This Section 4.02 shall terminate upon the earlier to occur of (i) January 18, 2009 and
(ii) the date on which the Aggregate Ownership of Ordinary Shares by the Institutional Shareholders
collectively falls below 30% of the aggregate Initial Ownership of Ordinary Shares by such
Institutional Shareholders.

ARTICLE 5

Registration Rights

     Section 5.01. Demand Registration. (a) If, the Company shall receive a written request from
any of the Institutional Shareholders, that the Company effect the registration under the
Securities Act of all or a portion of such Requesting Shareholder’s Registrable Securities, and
specifying the intended method of disposition thereof (a “Demand Registration”), then the Company
shall promptly give written notice of such requested registration at least 15 days prior to the
anticipated filing date of the registration statement relating to such Demand Registration to each
Non-Requesting Shareholder. Upon the Company’s giving notice of a requested registration, the
Company will use its reasonable best efforts to effect, as expeditiously as possible, the
registration under the Securities Act of:

     (x) the Registrable Securities that the Company has been so requested to register by
the Requesting Shareholders, then held by the Requesting Shareholders, and

     (y) subject to the restrictions set forth in Sections 5.01(e) and 5.02, all other
Registrable Securities of the same class as that requested to be registered by the
Requesting Shareholders which any Non-Requesting Shareholder entitled to request the Company
to effect an Incidental Registration pursuant to Section 5.02 (all such Shareholders,
together with the Requesting Shareholders, the “Holders”) have requested the Company to
register by written request received by the Company within 15 days after the receipt by such
Holders of such written notice given by the Company,

all to the extent necessary to permit the disposition (in accordance with the intended
methods thereof as aforesaid) of the Registrable Securities so to be registered, provided
that the Company shall not be obligated to effect a Demand Registration unless either (x)

18

 

the aggregate proceeds expected to be received from the sale of the Ordinary Shares
requested to be included in such Demand Registration equal or exceed $25,000,000 or, in the
case of a Shortform Registration, $5,000,000 or (y) the remaining portion of Registrable
Securities held by at least one Requesting Shareholder would be registered pursuant to such
Demand Registration. In no event will the Company be required to effect more than one
Demand Registration hereunder within any six-month period.

     “Requesting Shareholder” means, with respect to a Demand Registration, the Institutional
Shareholder or Institutional Shareholders exercising such Demand Registration and any Institutional
Shareholder that joins a Demand Registration. “Non-Requesting Shareholder” means each Shareholder
with respect to a Demand Registration that is not a Requesting Shareholder.

     (b) Promptly after the expiration of the 15-day period referred to in Section 5.01(a)(y)
hereof, the Company will notify all the Holders to be included in the Demand Registration of the
other Holders and the number of shares of Registrable Securities requested to be included therein.
At any time prior to the effective date of the registration statement relating to such
registration, the Requesting Shareholders may revoke such request, without liability to any of the
other Holders, by providing a written notice to the Company revoking such request.

     (c) The Company will be liable for and pay all Registration Expenses in connection with any
Demand Registration, regardless of whether it is effected.

     (d) A Demand Registration shall not be deemed to have occurred

     (i) unless the registration statement relating thereto (A) has become effective under
the Securities Act and (B) has remained effective for a period of at least 180 days (or such
shorter period in which all Registrable Securities of the Holders included in such
registration have actually been sold thereunder), provided that such registration statement
shall not be considered a Demand Registration if, after any registration statement requested
pursuant to this Section 5.01 becomes effective, (x) such registration statement is
interfered with by any stop order, injunction or other order or requirement of the SEC or
other governmental agency or court and (y) less than 75% of the Registrable Securities
included in such registration statement have been sold thereunder, or

     (ii) if the Maximum Offering Size (as defined below) is reduced in accordance with
Section 5.01(e) such that less than 662/3 % of the Registrable Securities of the Requesting
Shareholders sought to be included in such registration are included.

     (e) If a Demand Registration involves an underwritten Public Offering and the managing
underwriter shall advise the Company and the Requesting Shareholders that, in its view, the number
of shares of Registrable Securities requested to be included in such registration (including any
securities that the Company proposes to be included that are not Registrable Securities) exceeds
the largest number of shares that can be sold without having an adverse effect on such offering,
including the price at which such shares can be sold (the “Maximum

19

 

Offering Size”), the Company will include in such registration, in the priority listed below,
up to the Maximum Offering Size:

     (A) first, all Registrable Securities requested to be registered by the
Requesting Shareholders and their Permitted Transferees and, in the case of a
Demand Registration exercised by more than one Institutional Shareholder, all
Registrable Securities requested to be registered by each of the Institutional
Shareholders and their Permitted Transferees (allocated, if necessary for the
offering not to exceed the Maximum Offering Size, pro rata among such entities on
the basis of the relative number of shares of Registrable Securities so requested
to be registered),

     (B) second, all Registrable Securities requested to be included in such
registration by any Non-Requesting Shareholder and its Permitted Transferees
(allocated, if necessary for the offering not to exceed the Maximum Offering Size,
pro rata among the Non-Requesting Shareholders and their Permitted Transferees on
the basis of the relative number of Registrable Securities so requested to be
included in such registration) excluding, for purposes of this paragraph (B), the
Registrable Securities of a Non-Requesting Institutional Shareholder in the case of
a Demand Registration in which such Non-Requesting Institutional Shareholder is
included in paragraph (A) above, and

     (C) third, any securities proposed to be registered for the account of any
other Persons (including the Company), with such priorities among them as the
Company shall determine.

     (f) Upon written notice to each Requesting Shareholder, the Company may postpone effecting a
registration pursuant to this Section 5.01 on one occasion during any period of 12 consecutive
months for a reasonable time specified in the notice but not exceeding 90 days (which period may
not be extended or renewed), if (1) an investment banking firm of recognized national standing
shall advise the Company and the Requesting Shareholders in writing that effecting the registration
would materially and adversely affect an offering of securities of such Company the preparation of
which had then been commenced or (2) the Company is in possession of material non-public
information the disclosure of which during the period specified in such notice the Company believes
would not be in the best interests of the Company.

     Section 5.02. Incidental Registration. (a) If, at any time after the First Public Offering,
the Company proposes to register any Company Securities under the Securities Act (other than a
registration on Form S-8 or S-4, or any successor or similar forms, relating to Ordinary Shares
issuable upon exercise of employee stock options or in connection with any employee benefit or
similar plan of the Company or in connection with a direct or indirect acquisition by the Company
of another Person), whether or not for sale for its own account, it will each such time, subject to
the provisions of Section 5.02(b), give prompt written notice prior to the anticipated filing date
of the registration statement relating to such registration to each Shareholder, which

20

 

notice shall set forth such Shareholder’s rights under this Section 5.02 and shall offer such Shareholder the
opportunity to include in such registration statement the number of Registrable Securities of the
same class or series as those proposed to be registered as each such Shareholder may request (an
“Incidental Registration”), subject to the provisions of Section 5.02(b). Upon
the written request of any such Shareholder made within 15 days after the receipt of notice
from the Company (which request shall specify the number of Registrable Securities intended to be
disposed of by such Shareholder), the Company will use its reasonable best efforts to effect the
registration under the Securities Act of all Registrable Securities that the Company has been so
requested to register by all such Shareholders, to the extent requisite to permit the disposition
of the Registrable Securities so to be registered, provided that (i) if such registration involves
an underwritten Public Offering, all such Shareholders requesting to be included in the Company’s
registration must sell their Registrable Securities to the underwriters selected as provided in
Section 5.04(f) on the same terms and conditions as apply to the Company or the Requesting
Shareholder, as applicable, and (ii) if, at any time after giving written notice of its intention
to register any securities pursuant to this Section 5.02(a) and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall determine for
any reason not to register such securities, the Company shall give written notice to all such
Shareholders and, thereupon, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration. No registration effected under this Section 5.02
shall relieve the Company of its obligations to effect a Demand Registration to the extent required
by Section 5.01. The Company shall pay all Registration Expenses in connection with each
registration of Registrable Securities requested pursuant to this Section 5.02.

     (b) If a registration pursuant to this Section 5.02 involves an underwritten Public Offering
(other than any Demand Registration, in which case the provisions with respect to priority of
inclusion in such offering set forth in Section 5.01(e) shall apply) and the managing underwriter
advises the Company that, in its view, the number of Shares that the Company and such Shareholders
intend to include in such registration exceeds the Maximum Offering Size, the Company will include
in such registration, in the following priority, up to the Maximum Offering Size:

     (i) first, so much of the securities proposed to be registered for the account of the
Company as would not cause the offering to exceed the Maximum Offering Size,

     (ii) second, all Registrable Securities requested to be included in such registration
by the Institutional Shareholders and each of their Permitted Transferees, (allocated, if
necessary for the offering not to exceed the Maximum Offering Size, pro rata among such
entities or persons on the basis of the relative number of shares of Registrable Securities
so requested to be included in such registration),

     (iii) third, any securities proposed to be registered for the account of any other
Persons with such priorities among them as the Company shall determine.

     Section 5.03. Holdback Agreements. If any registration of Registrable Securities shall
become effective in connection with a Public Offering, each Institutional Shareholder and each
Other Shareholder and the Company agree not to effect any public sale or distribution, including

21

 

any sale pursuant to Rule 144 or Rule 144A under the Securities Act, of any Registrable Securities,
and not to effect any such public sale or distribution of any other security of the Company or of
any stock convertible into or exchangeable or exercisable for any Ordinary Shares (in each case,
other than as part of such Public Offering) during the 14 days prior to the
effective date of the applicable registration statement (except as part of such registration)
or during the period after such effective date equal to the lesser of (i) such period of time as
the Company and the lead managing underwriter shall agree and (ii) 90 days (such lesser period, the
“Applicable Holdback Period”).

     Section 5.04. Registration Procedures. Whenever Shareholders request that any Registrable
Securities be registered pursuant to Section 5.01 or 5.02 hereof, subject to the provisions of such
Sections, the Company will use its reasonable best efforts to effect the registration and the sale
of such Registrable Securities in accordance with the intended method of disposition thereof as
quickly as practicable, and in connection with any such request:

     (a) The Company will as expeditiously as possible (but in any event within (i) 45 days of
receipt of a request for a Demand Registration or (ii) 21 days, in the case of a Shortform
Registration) prepare and file with the SEC a registration statement on any form reasonably
acceptable to the Requesting Shareholders for which the Company then qualifies or that counsel for
the Company shall deem appropriate and which form shall be available for the sale of the
Registrable Securities to be registered thereunder in accordance with the intended method of
distribution thereof, and use its reasonable best efforts to cause such filed registration
statement to become and remain effective for a period of not less than 180 days, or in the case of
a shelf registration statement, one year (or such shorter period in which all of the Registrable
Securities of the Holders included in such registration statement shall have actually been sold
thereunder).

     (b) Prior to filing a registration statement or prospectus or any amendment or supplement
thereto, the Company will, if requested, furnish to each participating Shareholder and each
underwriter, if any, of the Registrable Securities covered by such registration statement copies of
such registration statement as proposed to be filed, and thereafter the Company will furnish to
such Shareholder and underwriter, if any, such number of copies of such registration statement,
each amendment and supplement thereto (in each case including all exhibits thereto and documents
incorporated by reference therein), the prospectus included in such registration statement
(including each preliminary prospectus and any summary prospectus) and any other prospectus filed
under Rule 424 or Rule 430A under the Securities Act and such other documents as such Shareholder
or underwriter may reasonably request in order to facilitate the disposition of the Registrable
Securities owned by such Shareholder. Each Institutional Shareholder shall have the right to
request that the Company modify any information contained in such registration statement, amendment
and supplement thereto pertaining to such Institutional Shareholder and the Company shall use all
reasonable efforts to comply with such request, provided, however, that the Company shall not have
any obligation so to modify any information if so doing would cause the prospectus to 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 not misleading.

22

 

     (c) After the filing of the registration statement, the Company shall (i) cause the
related prospectus to be supplemented by any required prospectus supplement, and, as so
supplemented, to be filed pursuant to Rule 424 under the Securities Act, (ii) comply with the
provisions of the Securities Act with respect to the disposition of all Registrable Securities
covered by such registration statement during the applicable period in accordance with the intended
methods of disposition by the sellers thereof set forth in such registration statement or
supplement to such prospectus and (iii) promptly notify each Shareholder holding Registrable
Securities covered by such registration statement of any stop order issued or threatened by the SEC
or any state securities commission under state blue sky laws and take all reasonable actions
required to prevent the entry of such stop order or to remove it if entered.

     (d) The Company will use its reasonable best efforts to (i) register or qualify the
Registrable Securities covered by such registration statement under such other securities or blue
sky laws of such jurisdictions in the United States as any Shareholder holding such Registrable
Securities reasonably (in light of such Shareholder’s intended plan of distribution) requests and
(ii) cause such Registrable Securities to be registered with or approved by such other governmental
agencies or authorities as may be necessary by virtue of the business and operations of the Company
and do any and all other acts and things that may be reasonably necessary or advisable to enable
such Shareholder to consummate the disposition of the Registrable Securities owned by such
Shareholder, provided that the Company will not be required to (A) qualify generally to do business
in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (d),
(B) subject itself to taxation in any such jurisdiction or (C) consent to general service of
process in any such jurisdiction.

     (e) The Company will immediately notify each Shareholder holding such Registrable Securities
covered by such registration statement, at any time when a prospectus relating thereto is required
to be delivered under the Securities Act, of the occurrence of an event requiring the preparation
of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such 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 not misleading and promptly prepare and make available to each such Shareholder
and file with the SEC any such supplement or amendment.

     (f) (i) The selling Institutional Shareholders acting collectively will have the right, in
their sole discretion, to select an underwriter or underwriters in connection with any Public
Offering resulting from the exercise of a Demand Registration, which underwriter or underwriters
may include any Affiliate of any Institutional Shareholder, and (ii) the Company will select an
underwriter or underwriters in connection with any other Public Offering. In connection with any
Public Offering, the Company will enter into customary agreements (including an underwriting
agreement in customary form) and take such other actions as are reasonably required in order to
expedite or facilitate the disposition of such Registrable Securities in any such Public Offering,
including the engagement of a “qualified independent underwriter” in connection with the
qualification of the underwriting arrangements with the NASD.

23

 

     (g) Upon execution of confidentiality agreements in form and substance reasonably satisfactory
to the Company, the Company will make available for inspection by any Shareholder and any
underwriter participating in any disposition pursuant to a registration statement being filed by
the Company pursuant to this Section 5.04 and any attorney, accountant or other professional
retained by any such Shareholder or underwriter (collectively, the “Inspectors”), all financial and
other records, pertinent corporate documents and properties of the Company (collectively, the
“Records”) as shall be reasonably necessary or desirable to enable them to exercise their due
diligence responsibility, and cause the Company’s officers, directors and employees to supply all
information reasonably requested by any Inspectors in connection with such registration statement.
Records that the Company determines, in good faith, to be confidential and that it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless (i) the disclosure of
such Records is necessary to avoid or correct a misstatement or omission in such registration
statement or (ii) the release of such Records is ordered pursuant to a subpoena or other order from
a court of competent jurisdiction. Each Shareholder agrees that information obtained by it as a
result of such inspections shall be deemed confidential and shall not be used by it or its
Affiliates as the basis for any market transactions in the Company Securities unless and until such
is made generally available to the public. Each Shareholder further agrees that, upon learning
that disclosure of such Records is sought in a court of competent jurisdiction, it will give notice
to the Company and allow the Company, at its expense, to undertake appropriate action to prevent
disclosure of the Records deemed confidential.

     (h) The Company will furnish to each such underwriter, if any, a signed counterpart, addressed
to such underwriter, of (i) an opinion or opinions of counsel to the Company and (ii) a comfort
letter or comfort letters from the Company’s independent public accountants, each in customary form
and covering such matters of the kind customarily covered by opinions or comfort letters, as the
case may be, as the managing underwriter therefor reasonably requests.

     (i) The Company will otherwise use its reasonable best efforts to comply with all applicable
rules and regulations of the SEC, and make available to its securityholders, as soon as reasonably
practicable, an earnings statement or such other document covering a period of 12 months, beginning
within three months after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

     (j) The Company may require each such Shareholder promptly to furnish in writing to the
Company such information regarding the distribution of the Registrable Securities as the Company
may from time to time reasonably request and such other information as may be legally required in
connection with such registration.

     (k) Each such Shareholder agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 5.04(e) hereof, such Shareholder will
forthwith discontinue disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such Shareholder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 5.04(e) hereof, and, if so directed by
the Company, such Shareholder will deliver to the Company all copies, other than

24

 

any permanent file copies then in such Shareholder’s possession, of the most recent prospectus
covering such Registrable Securities at the time of receipt of such notice. In the event that the
Company shall give such notice, the Company shall extend the period during which such registration
statement shall be maintained effective (including the period referred to in Section 5.04(a)
hereof) by the number of days during the period from and including the date of the giving of notice
pursuant to Section 5.04(e) hereof to the date when the Company shall make available to such
Shareholder a prospectus supplemented or amended to conform with the requirements of Section
5.04(e) hereof.

     (l) The Company will use its reasonable best efforts to list all Registrable Securities
covered by such registration statement on any securities exchange or quotation system on which any
of the Registrable Securities are then listed or traded.

     (m) The Company shall have appropriate officers of the Company (i) prepare and make
presentations at any “road shows” and before analysts and rating agencies, as the case may be, (ii)
take other actions to obtain ratings for any Registrable Securities and (iii) otherwise use their
reasonable best efforts to cooperate as reasonably requested by the underwriters in the offering,
marketing or selling of the Registrable Securities.

     (n) The Company will provide and cause to be maintained a transfer agent and registrar for all
Registrable Securities covered by such registration statement from and after a date not later than
the effective date of such registration statement.

     Section 5.05. Indemnification by the Company. The Company agrees to indemnify and hold
harmless each Shareholder holding Registrable Securities covered by a registration statement, its
officers, directors, employees, partners and agents, and each Person, if any, who controls such
Shareholder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act from and against any and all losses, claims, damages and liabilities (including reasonable
expenses of investigation and reasonable attorneys’ fees and expenses) caused by any untrue
statement or alleged untrue statement of a material fact contained in any registration statement or
prospectus relating to the Registrable Securities (as amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) or any preliminary prospectus, or caused by
any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such losses, claims,
damages or liabilities are caused by any such untrue statement or omission or alleged untrue
statement or omission so made based upon information furnished in writing to the Company by such
Shareholder or on such Shareholder’s behalf expressly for use therein. The Company also agrees to
indemnify any underwriters of the Registrable Securities, their officers and directors and each
person who controls such underwriters on substantially the same basis as that of the
indemnification of the Shareholders provided in this Section 5.05.

     Section 5.06. Indemnification by Participating Shareholders. Each Shareholder holding
Registrable Securities included in any registration statement agrees, severally but not jointly, to
indemnify and hold harmless the Company, its officers, directors and agents and each Person, if
any, who controls the Company within the meaning of either Section 15 of the Securities Act or

25

 

Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company
to such Shareholder, but only (i) with respect to information furnished in writing by such
Shareholder or on such Shareholder’s behalf expressly for use in any registration statement or
prospectus relating to the Registrable Securities, or any amendment or supplement thereto, or any
preliminary prospectus or (ii) to the extent that any loss, claim, damage, liability or expense
described in Section 5.05 results from the fact that a current copy of the prospectus (or such
amended or supplemented prospectus, as the case may be) was not sent or given to the Person
asserting any such loss, claim, damage, liability or expense at or prior to the written
confirmation of the sale of the Registrable Securities concerned to such Person if it is determined
that it was the responsibility of such Shareholder to provide such Person with a current copy of
the prospectus (or such amended or supplemented prospectus, as the case may be) and such current
copy of the prospectus (or such amended or supplemented prospectus, as the case may be) would have
cured the defect giving rise to such loss, claim, damage, liability or expense. Each such
Shareholder also agrees to indemnify and hold harmless underwriters of the Registrable Securities,
their officers and directors and each Person who controls such underwriters on substantially the
same basis as that of the indemnification of the Company provided in this Section 5.06. As a
condition to including Registrable Securities in any registration statement filed in accordance
with Article 5 hereof, the Company may require that it shall have received an undertaking
reasonably satisfactory to it from any underwriter to indemnify and hold it harmless to the extent
customarily provided by underwriters with respect to similar securities. No Shareholder shall be
liable under this Section 5.06 for any loss, claim, damage, liability or expense in excess of the
net proceeds realized by such Shareholder in the sale of Registrable Securities of such Shareholder
to which such loss, claim, damage, liability or expense relates.

     Section 5.07. Conduct of Indemnification Proceedings. In case any proceeding (including any
governmental investigation) shall be instituted involving any Person in respect of which indemnity
may be sought pursuant to this Article 5, such Person (an “Indemnified Party”) shall promptly
notify the Person against whom such indemnity may be sought (the “Indemnifying Party”) in writing
and the Indemnifying Party shall assume the defense thereof, including the employment of counsel
reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and
expenses, provided that the failure of any Indemnified Party so to notify the Indemnifying Party
shall not relieve the Indemnifying Party of its obligations hereunder except to the extent that the
Indemnifying Party is materially prejudiced by such failure to notify. In any such proceeding, any
Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the
Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) in the
reasonable judgment of such Indemnified Party representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is
understood that, in connection with any proceeding or related proceedings in the same jurisdiction,
the Indemnifying Party shall not be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified
Parties, and that all such fees and expenses shall be reimbursed as they are incurred. In the case
of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by
the Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent, or if there be a
final judgment for the plaintiff,

26

 

the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and
against any loss or liability (to the extent stated above) by reason of such settlement or
judgment. Without the prior written consent of the Indemnified Party, no Indemnifying Party shall
effect any settlement of any pending or threatened proceeding 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 includes an unconditional release of such Indemnified
Party from all liability arising out of such proceeding.

     Section 5.08. Contribution. If the indemnification provided for in this Article 5 is
unavailable to the Indemnified Parties in respect of any losses, claims, damages or liabilities
referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such
losses, claims, damages or liabilities (i) as between the Company and the Shareholders holding
Registrable Securities covered by a registration statement on the one hand and the underwriters on
the other, in such proportion as is appropriate to reflect the relative benefits received by the
Company and such Shareholders on the one hand and the underwriters on the other, from the offering
of the Registrable Securities, or if such allocation is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits but also the relative fault
of the Company and such Shareholders on the one hand and of such underwriters on the other in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations and (ii) as between the Company
on the one hand and each such Shareholder on the other, in such proportion as is appropriate to
reflect the relative fault of the Company and of each such Shareholder in connection with such
statements or omissions, as well as any other relevant equitable considerations. The relative
benefits received by the Company and such Shareholders on the one hand and such underwriters on the
other shall be deemed to be in the same proportion as the total proceeds from the offering (net of
underwriting discounts and commissions but before deducting expenses) received by the Company and
such Shareholders bear to the total underwriting discounts and commissions received by such
underwriters, in each case as set forth in the table on the cover page of the prospectus. The
relative fault of the Company and such Shareholders on the one hand and of such underwriters on the
other 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 and such Shareholders or by such underwriters. The relative
fault of the Company on the one hand and of each such Shareholder on the other 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 such party, and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.

     The Company and the Shareholders agree that it would not be just and equitable if contribution
pursuant to this Section 5.08 were determined by pro rata allocation (even if the underwriters were
treated as one entity for such purpose) or by any other method of allocation that does not take
account of the equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or
liabilities referred to in the immediately preceding paragraph shall be

27

 

deemed to include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this Section 5.08, no underwriter shall be
required to contribute any amount in excess of the amount by which the total price at which the
Registrable Securities underwritten by it and distributed to the public were offered to the public
exceeds the amount of any damages that such underwriter has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission, and no
Shareholder shall be required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities of such Shareholder were offered to the public exceeds
the amount of any damages that such Shareholder has 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.
Each Shareholder’s obligation to contribute pursuant to this Section 5.08 is several in the
proportion that the proceeds of the offering received by such Shareholder bears to the total
proceeds of the offering received by all such Shareholders and not joint.

     Section 5.09. Participation in Public Offering. No Person may participate in any Public
Offering hereunder unless such Person (a) agrees to sell such Person’s securities on the basis
provided in any underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of
such underwriting arrangements and the provisions of this Agreement in respect of registration
rights.

     Section 5.10. Other Indemnification. Indemnification similar to that specified herein (with
appropriate modifications) shall be given by the Company and each Shareholder participating therein
with respect to any required registration or other qualification of securities under any federal or
state law or regulation or governmental authority other than the Securities Act.

     Section 5.11. Cooperation by the Company. If any Shareholder shall transfer any Registrable
Securities pursuant to Rule 144 or Rule 144A under the Securities Act, the Company shall cooperate,
to the extent commercially reasonable, with such Shareholder and shall provide to such Shareholder
such information as such Shareholder shall reasonably request.

     Section 5.12. No Transfer of Registration Rights. None of the rights of Shareholders under
this Article 5 shall be assignable by any Shareholder to any Person acquiring Securities in any
Public Offering or pursuant to Rule 144 or Rule 144A of the Securities Act.

ARTICLE 6

Certain Covenants and Agreements

     Section 6.01. Confidentiality. (a) Each Shareholder agrees that Confidential Information
(as defined below) furnished and to be furnished to it was and will be made available in

28

 

connection with such Shareholder’s Investment in the Company. Each Shareholder agrees that it
will use, and that it will cause any Person to whom Confidential Information is disclosed pursuant
to clause (i) below to use, the Confidential Information only in connection with its Investment in
the Company and not for any other purpose (including, without limitation, to disadvantage
competitively the Company or any other Shareholder). Each Shareholder further acknowledges and
agrees that it will not disclose any Confidential Information to any Person, provided that
Confidential Information may be disclosed (i) to such Shareholder’s Representatives (as defined
below) in the normal course of the performance of their duties or to any financial institution
providing credit to such Shareholder, (ii) to the extent required by applicable law, rule or
regulation (including complying with any oral or written questions, interrogatories, requests for
information or documents, subpoena, civil investigative demand or similar process to which a
Shareholder is subject, provided that such Shareholder gives the Company prompt notice of such
request(s), to the extent practicable, so that the Company may seek an appropriate protective order
or similar relief (and the Shareholder shall cooperate with such efforts by the Company, and shall
in any event make only the minimum disclosure required by such law, rule or regulation)), (iii) to
any Person to whom such Shareholder is contemplating a Transfer of its Company Securities (provided
that such Transfer would not be in violation of the provisions of this Agreement and as long as
such potential transferee is advised of the confidential nature of such information and agrees to
be bound by a confidentiality agreement in form and substance satisfactory to the Company and
consistent with the provisions hereof), (iv) to any regulatory authority or rating agency to which
the Shareholder or any of its affiliates is subject or with which it has regular dealings, as long
as such authority or agency is advised of the confidential nature of such information or (v) if the
prior written consent of the Board shall have been obtained. Nothing contained herein shall
prevent the use (subject, to the extent possible, to a protective order) of Confidential
Information in connection with the assertion or defense of any claim by or against the Company or
any Shareholder.

     (b) “Confidential Information” means any information concerning the Company and Persons that
are or become its Subsidiaries or the financial condition, business, operations or prospects of the
Company and Persons that are or become its Subsidiaries in the possession of or furnished to any
Shareholder (including, without limitation by virtue of its present or former right to designate a
director of the Company), provided that the term Confidential Information does not include
information that (i) is or becomes generally available to the public other than as a result of a
disclosure by a Shareholder or its partners, directors, officers, employees, agents, counsel,
investment advisers or representatives (all such persons being collectively referred to as
“Representatives”) in violation of this Agreement, (ii) is or was available to such Shareholder on
a non-confidential basis prior to its disclosure to such Shareholder or its Representatives by the
Company or (iii) was or becomes available to such Shareholder on a non-confidential basis from a
source other than the Company, provided that such source is or was (at the time of receipt of the
relevant information) not, to the best of such Shareholder’s knowledge, bound by a confidentiality
agreement with (or other confidentiality obligation to) the Company or another Person.

     Section 6.02. Information. The Company agrees to furnish to any Institutional Shareholder
that is a Five Percent Shareholder:

29

 

     (a) After the end of the first three fiscal quarters, as soon as practicable and in any event
on or before the applicable filing date for filing quarterly reports on Form 10-Q (or any successor
form) with the SEC, consolidated balance sheets of the Company and its Subsidiaries as at the end
of such period and the related consolidated statements of income, stockholders’ equity and cash
flow of the Company and its Subsidiaries for such fiscal quarter, setting forth in each case in
comparative form the consolidated figures for the corresponding periods of the previous fiscal
year, all in reasonable detail and certified by the Company’s Chief Financial Officer that they
fairly present the financial condition of the Company and its Subsidiaries as at the dates
indicated and the results of their operations and changes in their financial position for the
periods indicated, subject to normal year-end adjustments;

     (b) After the end of each fiscal year as soon as practicable and in any event on or before the
applicable filing date for filing annual reports on Form 10-K (or any successor form), consolidated
balance sheets of the Company and its Subsidiaries as at the end of such year and the related
consolidated statements of income, stockholders’ equity and cash flow of the Company and its
Subsidiaries for such fiscal year, setting forth in each case, in comparative form, the
consolidated figures for the previous year, all in reasonable detail and accompanied by a report
thereon of independent certified public accountants of recognized national standing selected by the
Company, which report shall be unqualified as to going concern and scope of audit and shall state
that such consolidated financial statements present fairly the financial position of the Company
and its Subsidiaries as at the dates indicated and the results of their operations and changes in
their financial position for the periods indicated in conformity with generally accepted accounting
principles applied on a basis consistent with prior years (except as otherwise stated therein) and
that the examination by such accountants in connection with such consolidated financial statements
has been made in accordance with generally accepted auditing standards;

     (c) As soon as practicable and in any event no later than 20 days after the end of each fiscal
month of the Company, the Company monthly management report for such month, substantially in the
form of and covering the items set forth in Exhibit B hereto;

     (d) Promptly upon receipt thereof, copies of all reports submitted to the Company by
independent public accountants in connection with each annual, interim or special audit of the
Company’s financial statements made by such accountant, including, without limitation, the comment
letter submitted by such accountants to management in connection with their annual audit;

     (e) Promptly upon their becoming available, copies of all financial statements, reports,
notices and proxy statements sent or made available generally by the Company to its securityholders
or by any Subsidiary of the Company to its securityholders other than the Company or another
Subsidiary, of all regular and periodic reports and all registration statements and prospectuses,
if any, filed by the Company or any of its Subsidiaries with any securities exchange or with the
SEC or any governmental authority succeeding to any of its functions, and of all press releases and
other written statements made available generally by the Company or any Subsidiary to the public
concerning material developments in the business of the Company and its Subsidiaries;

30

 

     (f) All information provided in writing to the banks pursuant to the Company’s principal
credit facility; and

     (g) From time to time such additional information regarding the financial position or business
of the Company and its Subsidiaries as such Institutional Shareholder may reasonably request.

     The Company’s obligation to provide information pursuant to paragraphs (a) and (b) of this
Section 6.02 and Section 6.03 shall be deemed satisfied upon the timely filing of such information
with the SEC.

     Section 6.03. Reports. The Company will furnish the Shareholders with the quarterly and
annual financial reports that the Company is required to file with the SEC pursuant to Section 13
or Section 15(d) of the Exchange Act or, in the event the Company is not required to file such
reports, quarterly and annual reports containing the same information as would otherwise be
required in such reports.

     Section 6.04. Cooperation in Refinancing. Each Shareholder agrees to cooperate to the
extent commercially reasonable with the Company and take such steps as the Board reasonably deems
appropriate in any financing of debt of the Company and any of its Subsidiaries, including
executing such documents as the Board reasonably determines should be filed with any governmental
agency and conducting presentations to potential investors and rating agencies. This Section 6.04
shall not be construed to require any Shareholder to contribute any additional capital to the
Company.

     Section 6.05. Appointment of Shareholder Representatives. (a) Each TPG Entity and, to the
extent that any Permitted Transferee of any TPG Entity shall have become a Shareholder, such
Shareholder irrevocably appoints the TPG Shareholder Representative its agent and true and lawful
attorney-in-fact, with full power of substitution, to take the actions, receive notices and
exercise the powers delegated to the TPG Shareholder Representative under this Agreement in the
name of each such Shareholder, together with such actions and powers as are reasonably incidental
thereto. Notwithstanding the foregoing, the TPG Shareholder Representative shall not take any
action or exercise any power to the extent that the holders of the majority of the Fully Diluted
Ordinary Shares held by the TPG Entities and their Permitted Transferees shall have voted to
prevent the Shareholder Representative from taking such action or exercising such power. “TPG
Shareholder Representative” means TPG IV as agent for the TPG Entities and their Permitted
Transferees that are Shareholders. The entity appointed as the TPG Shareholder Representative may
be replaced at any time and from time to time by the vote of a majority of the Fully Diluted
Ordinary Shares held by the TPG Entities and their Permitted Transferees. The new TPG Shareholder
Representative shall notify the Company of such appointment as promptly as practicable after such
appointment.

     (b) Each FP Entity and, to the extent that any Permitted Transferee of any FP Entity shall
have become a Shareholder, such Shareholder irrevocably appoints the FP Shareholder Representative
its agent and true and lawful attorney-in-fact, with full power of substitution, to take the
actions, receive notices and exercise the powers delegated to the FP Shareholder

31

 

Representative under this Agreement in the name of each such Shareholder, together with such
actions and powers as are reasonably incidental thereto. Notwithstanding the foregoing, the FP
Shareholder Representative shall not take any action or exercise any power to the extent that the
holders of the majority of the Fully Diluted Ordinary Shares held by the FP Entities and their
Permitted Transferees shall have voted to prevent the Shareholder Representative from taking such
action or exercising such power. “FP Shareholder Representative” means FP as agent for the FP
Entities and their Permitted Transferees that are Shareholders. The entity appointed as the FP
Shareholder Representative may be replaced at any time and from time to time by the vote of a
majority of the Fully Diluted Ordinary Shares held by the FP Entities and their Permitted
Transferees. The new FP Shareholder Representative shall notify the Company of such appointment as
promptly as practicable after such appointment.

     (c) Each of Shah Capital and, to the extent that any Permitted Transferee of Shah Capital
shall have become a Shareholder, such Shareholder irrevocably appoints the Shah Capital Shareholder
Representative its agent and true and lawful attorney-in-fact, with full power of substitution, to
take the actions, receive notices and exercise the powers delegated to the Shah Capital Shareholder
Representative under this Agreement in the name of each such Shareholder, together with such
actions and powers as are reasonably incidental thereto. Notwithstanding the foregoing, the Shah
Capital Shareholder Representative shall not take any action or exercise any power to the extent
that the holders of the majority of the Fully Diluted Ordinary Shares held by Shah Capital and its
Permitted Transferees shall have voted to prevent the Shareholder Representative from taking such
action or exercising such power. “Shah Capital Shareholder Representative” means Shah Capital, as
agent for Shah Capital and its Permitted Transferees that are Shareholders. The entity appointed
as the Shah Capital Shareholder Representative may be replaced at any time and from time to time by
the vote of a majority of the Fully Diluted Ordinary Shares held by Shah Capital and its Permitted
Transferees. The new Shah Capital Shareholder Representative shall notify the Company of such
appointment as promptly as practicable after such appointment.

     Section 6.06. Decisions by Institutional Shareholders. In instances that the Institutional
Shareholders may, or are required to, collectively vote, request, consent or decide on any matter
under this Agreement, such vote, request, consent or decision shall be make in accordance with the
result of the vote on such matter of a majority of the Ordinary Shares held at such time by the
Institutional Shareholders and their Permitted Transferees.

ARTICLE 7

Miscellaneous

     Section 7.01. Entire Agreement. This Agreement constitutes the entire agreement among the
parties hereto and supersede all prior and contemporaneous agreements and understandings, both oral
and written, among the parties hereto with respect to the subject matter hereof and thereof.

     Section 7.02. Binding Effect; Benefit. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, successors, legal representatives

32

 

and permitted assigns. Nothing in this Agreement, expressed or implied, is intended to confer
on any Person other than the parties hereto, and their respective heirs, successors, legal
representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

     Section 7.03. Assignability. Neither this Agreement nor any right, remedy, obligation or
liability arising hereunder or by reason hereof shall be assignable by any party hereto pursuant to
any Transfer of Company Securities or otherwise, except that, any Permitted Transferee acquiring
Company Securities and any Person acquiring Company Securities who is required by the terms of this
Agreement or any employment agreement or stock purchase, option, stock option or other compensation
plan of the Company or any Subsidiary to become a party hereto shall (unless already bound hereby)
execute and deliver to the Company an agreement to be bound by this Agreement in the form of
Exhibit A hereto and shall thenceforth be a Shareholder. Any Shareholder who ceases to own
beneficially any Company Securities shall cease to be bound by the terms hereof (other than (i) the
provisions of Sections 5.05, 5.06, 5.07, 5.08 and 5.10 applicable to such Shareholder with respect
to any offering of Registrable Securities completed before the date such Shareholder ceased to own
any Company Securities and (ii) Sections 6.01, 7.09, 7.10 and 7.11).

     Section 7.04. Waiver; Amendment; Termination. (a) No provision of this Agreement may be
waived except by an instrument in writing executed by the party against whom the waiver is to be
effective. Subject to the provisions of Section 7.04(b), no provision of this Agreement may be
amended or otherwise modified except by an instrument in writing executed by the Company with
approval of the Board and Shareholders (including the Institutional Shareholders) holding at least
50% of the then outstanding Ordinary Shares held by the parties hereto at the time of such proposed
amendment or modification.

     (b) Any amendment or modification of any provision of this Agreement that would adversely
affect a right hereunder of any Institutional Shareholder may be effected only with the consent of
such Institutional Shareholder, except for any amendment or modification of any provision of this
Agreement that would affect any right hereunder of the Institutional Shareholders to collectively
vote, request, consent or decide on any matter hereunder (which may be effected with the consent of
Institutional Shareholders holding a majority of the Ordinary Shares held at such time by the
Institutional Shareholders and their Permitted Transferees). The Shareholders may amend or modify
the provisions of Article 4 without the consent of the Company.

     Section 7.05. Notices. All notices, requests and other communications to any party shall be
in writing (including facsimile transmissions) and shall be given,

33

 

     if to the Company to:

SMART Modular Technologies (WWH), Inc.

4211 Starboard Drive

Fremont, CA 94538

Attention: President

Fax: (510) 360-8500

     with a copy to the TPG Entities, the FP Entities and Shah Capital at the addresses on Schedule
I hereto

     with a copy to:

Davis Polk & Wardwell

1600 El Camino Real

Menlo Park, CA 94025

Attention: Alan F. Denenberg

Fax: (650) 752-3604

     if to any other party to the address beside its name on Schedule I.

     All notices, requests and other communications shall be deemed received on the date of receipt
by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a
Business Day in the place of receipt. Otherwise, any such notice, request or communication shall
be deemed not to have been received until the next succeeding Business Day in the place of receipt.
Any notice, request or other written communication sent by facsimile transmission shall be
confirmed by certified mail, return receipt requested, posted within one Business Day, or by
personal delivery, whether courier or otherwise, made within two Business Days after the date of
such facsimile transmissions.

     Any Person who becomes a Shareholder shall provide its address and fax number to the Company,
which shall promptly provide such information to each other Shareholder.

     Section 7.06. Fees and Expenses. The Company shall pay all out-of-pocket costs and expenses
of the Shareholders, including the fees and expenses of counsel, incurred in connection with the
preparation of this Agreement, or any amendment or waiver hereof, and the transactions contemplated
hereby and all matters related hereto.

     Section 7.07. Headings. The headings contained in this Agreement are for convenience only
and shall not affect the meaning or interpretation of this Agreement.

     Section 7.08. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original and all of which together shall be deemed to be one
and the same instrument.

34

 

     Section 7.09. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without regard to the conflicts of laws rules
of such state.

     Section 7.10. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 7.11. Specific Enforcement. Each party hereto acknowledges that the remedies at law
of the other parties for a breach or threatened breach of this Agreement would be inadequate and,
in recognition of this fact, any party to this Agreement, without posting any bond, and in addition
to all other remedies that may be available, shall be entitled to obtain equitable relief in the
form of specific performance, a temporary restraining order, a temporary or permanent injunction or
any other equitable remedy that may then be available.

     Section 7.12. Consent to Jurisdiction. The parties hereby agree that any suit, action or
proceeding seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall be brought in the
United States District Court for the District of Delaware or any Delaware State court sitting in
Delaware, so long as one of such courts shall have subject matter jurisdiction over such suit,
action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to
have arisen from a transaction of business in the State of Delaware, and each of the parties hereby
irrevocably consents to the nonexclusive jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the
fullest extent permitted by law, any objection that it may now or hereafter have to the laying of
the venue of any such suit, action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an inconvenient form. Process in
any such suit, action or proceeding may be served on any party anywhere in the world, whether
within or without the jurisdiction of any such court. Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section 7.05 shall be deemed effective
service of process on such party.

     Section 7.13. Severability. If one or more provisions of this Agreement are held to be
unenforceable to any extent under applicable law or constitute a breach or violation of the rules
or listing requirements of the securities exchange or quotation system on which the Ordinary Shares
are traded, such provision shall be interpreted as if it were written so as to be enforceable or in
compliance with the rules or listing requirements, as applicable, to the maximum possible extent so
as to effectuate the parties’ intent to the maximum possible extent, and the balance of the
Agreement shall be interpreted as if such provision were so excluded or interpreted and shall be
enforceable in accordance with its terms to the maximum extent permitted by law.

     Section 7.14. Recapitalization. If any capital stock or other securities are issued in
respect of, in exchange for, or in substitution of, any Company Securities by reason of any
reorganization, recapitalization, reclassification, merger, consolidation, spin-off, partial or
complete liquidation, stock dividend, split-up, sale of assets, distribution to shareholders or

35

 

combination of the Company Securities or any other change in capital structure of the Company,
appropriate adjustments shall be made with respect to the relevant provisions of this Agreement so
as fairly and equitably to preserve, as far as practicable, the original rights and obligations of
the parties hereto under this Agreement.

     Section 7.15. Limitations on Subsequent Registration Rights. The Company agrees that it
shall not enter into any agreement without the prior written consent of any Institutional
Shareholder that is a Five Percent Shareholder with any holder or prospective holder of any
securities of the Company (a) that would allow such holder or prospective holder to include such
securities in any Demand Registration or Incidental Registration unless, under the terms of such
agreement, such holder or prospective holder may include such securities in any such registration
only to the extent that their inclusion would not reduce the amount of the Registrable Securities
of the Shareholders included therein or (b) on terms otherwise more favorable than this Agreement.

     Section 7.16. Conflicting Agreements. The Company represents and agrees that it shall not
(i) grant any proxy or enter into or agree to be bound by any voting trust or agreement with
respect to the Company Securities, except as expressly contemplated by this Agreement, (ii) enter
into any agreement or arrangement of any kind with any Person with respect to the Company
Securities inconsistent with the provisions of this Agreement or for the purpose or with the effect
of denying or reducing the rights of any other Shareholder under this Agreement, including
agreements or arrangements with respect to the Transfer or voting of the Company Securities or
(iii) act, for any reason, as a member of a group or in concert with any other Person in connection
with the Transfer or voting of its Company Securities in any manner that is inconsistent with the
provisions of this Agreement.

36

 

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

	 	 	 	 	 
	SMART MODULAR TECHNOLOGIES (WWH), INC.
 	 
	By:  	/s/ Iain MacKenzie  	 	 
	 	Name:  	Iain MacKenzie 	 	 
	 	Title:  	Chief Executive Officer and President 	 	 
	 
	T3 II SM, LLC

 	 	 
	By:  	/s/ Gene Frantz
 	 	 
	 	Name:  	Gene Frantz 	 	 
	 	Title:  	Vice President 	 	 
	 
	TPG III SM, LLC

 	 	 
	By:  	/s/ Gene Frantz
 	 	 
	 	Name:  	Gene Frantz 	 	 
	 	Title:  	Vice President 	 	 
	 
	TPG IV SM, LLC

 	 	 
	By:  	/s/ Gene Frantz
 	 	 
	 	Name:  	Gene Frantz 	 	 
	 	Title:  	Vice President 	 	 

 

 

	 	 	 	 	 
	FRANCISCO PARTNERS, L.P.

 	 	 
	By:  	/s/ Dipanjan Deb
 	 	 
	 	Name:  	Dipanjan Deb 	 	 
	 	Title:  	Partner 	 	 
	 
	FRANCISCO PARTNERS FUND A, L.P.

 	 	 
	By:  	/s/ Dipanjan Deb
 	 	 
	 	Name:  	Dipanjan Deb 	 	 
	 	Title:  	Partner 	 	 
	 
	FP ANNUAL FUND INVESTORS, LLC

 	 	 
	By:  	/s/ Dipanjan Deb
 	 	 
	 	Name:  	Dipanjan Deb 	 	 
	 	Title:  	Partner 	 	 

 

 

	 	 	 	 	 
	SHAH CAPITAL PARTNERS, L.P.
 	 	 
	By	and on behalf of itself and as nominee for
 Krishnan Shah Fund, L.P. 	 	 
	 
	By:  	Shah Management Partners, L.L.C., its General Partner
 	 	 
	 
	By:  	Shah Management, LLC, its Managing Member
 	 	 
	 	 	 
	By:  	               /s/ Ajay Shah
 	 	 
	 	Name:  	Ajay Shah 	 	 
	 	Title:  	Manager 	 	 

 

 

	 	 	 	 	 
	WESTRIVER CAPITAL LLC

 	 	 
	By:  	/s/ Erik J. Anderson
 	 	 
	 	Name:  	Erik J. Anderson 	 	 
	 	Title:  	Managing Member 	 	 

 

 

	 	 	 	 	 
	PATEL FAMILY PARTNERS, L.P.

 	 	 
	By:  	/s/ Mukesh Patel
 	 	 
	 	Name:  	Mukesh Patel 	 	 
	 	Title:  	General Partner 	 	 

 

 

Schedule I

Shareholder Contact Information

	 	 	 
	Shareholder:	 	Contact Information:
	 
	 	 
	T3 II SM, LLC

	 	301 Commerce Street Suite 3300
	 

	 	Fort Worth, TX 76102
	 
	 	 
	TPG III SM, LLC

	 	301 Commerce Street Suite 3300
	 

	 	Fort Worth, TX 76102
	 
	 	 
	TPG IV SM, LLC

	 	301 Commerce Street Suite 3300
	 

	 	Fort Worth, TX 76102
	 
	 	 
	Francisco Partners, L.P.

	 	2882 Sand Hill Road, Suite 280
	 

	 	Menlo Park, CA 94025
	 

	 	Attention: Dipanjan Deb
	 
	 	 
	Francisco Partners Fund A, L.P.

	 	2882 Sand Hill Road, Suite 280
	 

	 	Menlo Park, CA 94025
	 

	 	Attention: Dipanjan Deb
	 
	 	 
	FP Annual Fund Investors, LLC

	 	2882 Sand Hill Road, Suite 280
	 

	 	Menlo Park, CA 94025
	 

	 	Attention: Dipanjan Deb
	 
	 	 
	Shah Capital Partners, L.P.

	 	5201 Great America Parkway, Suite 532
	 

	 	Santa Clara, CA 95054
	 
	 	 
	WestRiver Capital LLC

	 	3720 Carillon Point
	 

	 	Kirkland, WA 98033
	 
	 	 
	Patel Family Partners, L.P.

	 	c/o SMART Modular Technologies, Inc.
	 

	 	4211 Starboard Drive
	 

	 	Fremont, CA 94538
	 

	 	Attention: Mukesh Patel

 

 

EXHIBIT A

JOINDER TO SHAREHOLDERS’ AGREEMENT

     This Joinder Agreement (this “Joinder Agreement”) is made as of the date written below by the
undersigned (the “Joining Party”) in accordance with the Shareholders’ Agreement dated as of
January 18, 2006 (the “Shareholders’ Agreement”) among (i) SMART Modular Technologies (WWH), Inc.,
(ii) T3 II SM, LLC (“T3 II”), TPG III SM, LLC (“TPG III”) and TPG IV SM, LLC
(“TPG IV”) (taken together, the “TPG Entities,” and each of the foregoing in this clause (ii), a
“TPG Entity”), (iii) Francisco Partners, L.P. (“FP”), Francisco Partners Fund A, L.P. (“FP Fund A”)
and FP Annual Fund Investors, LLC (“FP Annual Fund”) (taken together, the “FP Entities,” and each
of the foregoing in this clause (iii), an “FP Entity”), (iv) Shah Capital Partners, L.P. (“Shah
Capital”), (v) WestRiver Capital LLC, (vi) Patel Family Partners, L.P. and (vii) such additional
persons as may sign joinder agreements thereto as the same may be amended from time to time.
Capitalized terms used, but not defined, herein shall have the meaning ascribed to such terms in
the Shareholders’ Agreement.

     The Joining Party hereby acknowledges, agrees and confirms that, by its execution of this
Joinder Agreement, the Joining Party shall be deemed to be a party to the Shareholders’ Agreement
as of the date hereof and shall have all of the rights and obligations of a “Shareholder”
thereunder as if it had executed the Shareholders’ Agreement. The Joining Party hereby ratifies,
as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions
contained in the Shareholders’ Agreement.

     The Joining Party’s Aggregate Ownership is                      Ordinary Shares as of the date written
below.

     IN WITNESS WHEREOF, the undersigned has executed this Joinder Agreement as of the date written
below.

Date:                      ___, 20__

	 	 	 	 	 
	 	[NAME OF JOINING PARTY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: 
 	 	 
	 	Address for Notices:  	 

 

 

	 	 	 	 	 

EXHIBIT B

MATTERS TO BE INCLUDED IN THE COMPANY’S

MONTHLY MANAGEMENT REPORT

	1.	 	The unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of
such month and the related unaudited statement of operations and cash flow for such month, and
for the portion of the fiscal year then ended, in each case prepared in accordance with GAAP,
setting forth in comparative form the figures for the corresponding month and portion of the
previous fiscal year, and the figures for the corresponding month and portion of the then
current fiscal year as in the Company’s annual operating budget.
	 
	2.	 	Projected monthly income statements prepared on the same basis as those specified in Item 1,
including revenue forecasts by customer and expense budget by major expense category, for
periods extending through a minimum of one year from the date of the report.
	 
	3.	 	A summary of realized and projected sales bookings for the most recent month and for periods
extending through a minimum of one year from the date of the report, including
probability-weighted “pipeline” projections of new bookings to the extent that the Company
compiles such data for internal purposes.exv10w9

 

Exhibit 10.9

	 	 	 	 	 
	Wells Fargo Bank, N.A.
	 	 	 	 
	 Financial Products
	 	 	 	 
	Telephone: 1-877-240-0795

	 	 	 	

FIRST AMENDED AND RESTATED ISDA CONFIRMATION

This Amended and Restated ISDA Confirmation amends, restates and replaces that certain ISDA Confirmation

dated as of April 26, 2005, originaly between party B and Wells Fargo Foothill, inc., (“WFFI”) as assigned to

Party A pursuant to that certain Novation Agreement dated as of April 30, 2007 by and between Party A, Party B

and WFFI. 

	 	 	 
	To:

	 	SMART Modular Technologies (WWH), Inc.
	 

	 	4211 Starboard Drive

Fremont, CA 94538

Attention: Jack Pacheco

Telephone: (510) 624-8134

Fax;(510)360-8500
	 
	 	 
	From:

	 	Wells Fargo Bank, N.A.

550 California Street

MAC A0112-121

San Francisco, CA 94104

Telephone: 1-877-240-0795

Fax: (415) 986-2604
	 
	 	 
	Re:

	 	USD 40,000,000.00 Interest Rate Swap Transaction
(31137)
	 
	 	 
	Date:

	 	May 10, 2007

Ladies and Gentlemen:

The purpose of this letter agreement is to confirm the terms and conditions of the
transaction (“Transaction”) entered into between Wells Fargo Bank, N.A. (“Party A”) and
SMART Modular Technologies (WWH), Inc., an Other corporation (“Party B”). This Transaction
is effective at, and as of 12:01 a.m., California time, on the Trade Date specified below.

The definitions and provisions contained in the 2000 ISDA Definitions (as published by the
International Swaps and Derivatives Association, Inc. (“ISDA”)), including the Annex to
the 2000 ISDA Definitions (the “Definitions”), are incorporated into this Confirmation. In
the event of any inconsistency between those definitions and provisions and this
Confirmation, this Confirmation will govern.

1. This Confirmation evidences a complete and binding agreement between Party A and Party B
as to the terms of the Transaction to which this Confirmation relates. In addition, Party A
and Party B agree to use all reasonable efforts to promptly negotiate, execute and deliver
a 1992 (ISDA Master Agreement (“Master Agreement”), with such modifications as Party A and
Party B will in good faith agree. Upon the execution by Party A and Party B of such Master
Agreement, the Confirmation will supplement, form a part of, and be subject to Master
Agreement. Ail provisions contained or incorporated by reference in that Master Agreement
upon its execution will govern this Confirmation except as expressly modified below. Until
the parties hereto execute and deliver that Master Agreement, this Confirmation, together
with all other documents referring to the master Agreement (each a “Confirmation”)
confirming transactions (each a ‘Transaction”) entered into between us (notwithstanding
anything to the contrary in a Confirmation), shall supplement, form a part of, and be
subject to a Master Agreement as if we had executed an agreement in such form on the Trade
Date of the first such Transaction between us. In the event of any inconsistency between the
provisions of that Master Agreement and this Confirmation, this Confirmation will prevail
for (he purpose of this Transaction.

2. The terms of the particular Transaction to which this Confirmation relates are as follows:

	 	 	 
	Notional Amount:

	 	USD 40,000,000.00
	Trade Date:

	 	April 26, 2005
	Effective Date:

	 	April 28, 2005

Page 1 of 5

 

	 	 	 
	Termination Date:
	 	April 28, 2010
	 
	 	 
	Fixed Amounts
	 	 
	Fixed Rate Payer:
	 	Party B
	Fixed Rate Payer
	 	The 1st day of each January, April, July, and October, beginning with July 1, 2005,
	Payment Dates:
	 	continuing up to and including the Termination Date, subject to adjustment in accordance
	 
	 	with the designated Business Day Convention.
	 
	Calculation Period:
	 	From the 1st day of each January,
April, July, and October, up to the 1st day of the
	 
	 	following quarter, continuing until the Termination Date, subject to no adjustment in
	 
	 	accordance with                     the designated Business Day Convention. The first Calculation Period
	 
	 	will be April 28, 2005 to July 1 , 2005.
	Fixed Rate:
	 	4.47%
	Fixed Rate Day
	 	 
	Count Fraction:
	 	30/360 - Unadjusted
	Business Day
	 	 
	Convention:
	 	Following
	 
	 	 
	Floating Amounts
	 	 
	Floating Rate
	 	 
	Payer:
	 	Party A
	 
	Floating
Rate

Payer Payment

Dates:
	 	The 1st day of each January, April,
July, and October, beginning with July 1, 2005, continuing up to and
including the Termination Date, subject to adjustment in accordance with the designated
Business Day Convention.
	 
	Calculation Period:
	 	From the 1st day of each January, April, July, and October, up to the 1st day of the
	 
	 	following quarter, continuing until
the Termination Date, subject to no adjustment in accordance with the
designated Business Day Convention. The first Calculation Period will be April 28, 2005 to July 1, 2005.
	 
	 	 
	Floating Rate
	 	 
	Option:
	 	USD-LIBOR-BBA
	Designated
	 	 
	Maturity:
	 	3 Month
	Spread:
	 	None
	Floating Rate Day
	 	 
	Count Fraction:
	 	30/360 - Unadjusted
	Floating Rate for
	 	 
	Initial Calculation
	 	 
	Period:
	 	3.18688%
	 
	 	 
	Reset Dates:
	 	The 1st day of each January, April, July, and October, subject to no adjustment in
	 
	 	accordance with the designated Business Day Convention. The first Reset Date is April
	 
	 	28, 2005.
	Rate Cut-off Date:
	 	Not Applicable
	Method of
Averaging:
	 	Not Applicable.
	Compounding:
	 	Not Applicable.
	Business Day
	 	 
	Convention:
	 	Following
	 
	 	 
	Business Days:
	 	New York City
	 
	Credit Support Document:
	 	(i) the Loan  Documents, as the same  may be amended,supplemented, modified,
	 
	 	renewed, replaced, consolidated,
restated, substituted or extended from time to time, as
	 
	 	defined in the Loan Agreement; and
	 
	 	 
	 
	 	(ii) the Loan Agreement as defined herein , as the same may be amended, supplemented,
	 
	 	modified, renewed, replaced, consolidated, restated, substituted or extended from time to
	 
	 	time.
	 
	 	 
	 
	 	For purpose of this Confirmation,
the Loan Agreement shall have the following meaning:

Page 2 of 5

 

	 	 	 
	 
	 	“Loan Agreement” means
that certain Second and Amended Loan and Security Agreement dated April 30,
2007 by and among Smart Modular Technologies, inc., Smart Modular
Technologies (Europe) Limited, and Smart Modular Technologies (Puerto
Rico) Inc., as Borrowers, the other Obligors named therein, the Lenders
that are signatories thereto, as the Lenders and Party A as the
Arranger, Administrative Agent and Security Trustee as amended, supplemented or modified from time to time.
	 
	 	 
	Credit Support Provider
	 	 
	for Party B:
	 	All “Guarantors”, as defined in the Loan Agreement.
	 
	 	 
	Account Details:
	 	 
	Payments due to
Party A:
	 	Settlement instructions to be provided.
	 
	 	 
	Payments due
to Party B:
	 	Settlement instructions to be provided.
	 
	 	 
	Calculation Agent:
	 	Party A

3. Please confirm that the foregoing correctly sets forth the terms of our agreement by having an
authorized officer sign one copy of this telecopy Confirmation and returning it to us by telecopier
to:

Weils Fargo Bank, N.A.

Attention: Documentation Group 

Fax: (415)986-2604

4. Each party represents to the other party hereto that (i) it is not acting as a fiduciary or a
financial or investment advisor for the other party; (ii) it is not relying upon any advice,
counsel or representations (whether written or oral) of the other party other than the
representations expressly set forth in the Master Agreement, any Credit Support Document and
herein; (iii) the other party hereto has not given to it any advice or counsel as to the expected or
projected success, return, performance, result, consequence or benefit (either legal, regulatory,
tax, financial, accounting, or otherwise) of this Transaction; (iv) it has consulted with its own
legal, regulatory, tax, business, investment financial and accounting advisors to the extent it has
deemed necessary and has made its own investment, hedging, and trading decisions (including
decisions regarding the suitability of this Transaction) based upon its own judgment and upon arty
advice from such advisors as it has deemed necessary and not upon any view expressed by the other
party hereto; (v) it has determined that the rates, prices, or amounts and other terms of this
Transaction in the indicative quotations (if any) provided by the other party hereto reflect those
in the relevant market for similar transactions, and all trading decisions have been the result of
arms length negotiations between the parties; (vi) it is entering into this Transaction with a full
understanding of all of the terms, conditions and risks thereof (economic and otherwise), and it
is capable of assuming and willing to assume (financially and otherwise) those risks; and (vii) it
is a sophisticated investor.

Page 3 of 5

 

5. This Confirmation will be governed by and construed in accordance with the laws of the State of
New York without reference to choice of law doctrine.

Yours sincerely,

	 	 	 	 	 
	WELLS FARGO BANK, N.A,	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mark Khalil	 	 
	Name:

	 	 

Mark Khalil
	 	 
	Its:

	 	Authorized Signatory	 	 
	Accepted and confirmed as of the Trade Date:	 	 
	 
	 	 	 	 
	SMART MODULAR
TECHNOLOGIES (WWH), INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jack Pacheco	 	 
	 

	 	 	 	 
	Name:

	 	Jack Pacheco	 	 
	Its:

	 	Vice President & CFO	 	 

Page 4 of 5

 

Schedule I for Transaction 31137:

Net Cash Flows

	 	 	 	 	 	 	 	 	 
	Start Date	 	End Date	 	Rate Fix Date	 	Payment Date	 	Notional
	04/28/2005
	 	07/01/2005	 	04/26/2005	 	07/01/2005	 	USD 40,000,000.00
	07/01/2005
	 	10/01/2005	 	08/29/2005	 	10/03/2005	 	USD 40,000,000,00
	10/01/2005
	 	01/01/2006	 	09/29/2005	 	01/03/2006	 	USD 40,000,000.00
	01/01/2006
	 	04/01/2006	 	12/29/2005	 	04/03/2006	 	USD 40,000 ,000.00
	04/01/2006
	 	07/01/2006	 	03/30/2006	 	07/03/2006	 	USD 40,000,000.00
	07/01/2006
	 	10/01/2006	 	06/29/2006	 	10/02/2006	 	USD 40,000,000.00
	10/01/2006
	 	01/01/2007	 	09/28/2006	 	01/02/2007	 	USD 40,000,000,00
	01/01/2007
	 	04/01/2007	 	12/28/2006	 	04/02/2007	 	USD 40,000,000.00
	04/01/2007
	 	07/01/2007	 	03/29/2007	 	07/02/2007	 	USD 40 ,000,000.00
	07/01/2007
	 	10/01/2007	 	06/28/2007	 	10/01/2007	 	USD 40,000,000.00
	10/01/2007
	 	01/01/2008	 	09/27/2007	 	01/02/2008	 	USD 40,000,000.00
	01/01/2008
	 	04/01/2008	 	12/28/2007	 	04/01/2008	 	USD 40,000,000.00
	04/01/2008
	 	07/01/2008	 	03/28/2008	 	07/01/2008	 	USD 40,000,000.00
	07/01/2008
	 	10/01/2008	 	06/27/2006	 	10/01/2008	 	USD 40,000,000.00
	10/01/2008
	 	01/01/2009	 	09/29/2008	 	01/02/2009	 	USD 40,000,000.00
	01/01/2009
	 	04/01/2009	 	12/30/2008	 	04/01/2009	 	USD 40,000 ,000. 00
	04/01/2009
	 	07/01 /2009	 	03/30/2009	 	07/01/2009	 	USD 40,000,000.00
	07/01/2009
	 	10/01/2009	 	06/29/2009	 	10/01/2009	 	USD 40,000,000.00
	10/01/2009
	 	01/01/2010	 	09/29/2009	 	01/04/2010	 	USD 40,000,000.00
	01/01/2010
	 	04/01/2010	 	12/30/2009	 	04/01/2010	 	USD 40,000,000.00
	04/01/2010
	 	04/28/2010	 	03/30/2010	 	04/28/2010	 	USD 40,000,000.00

Page 5 of 5

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