Document:

Stock Purchase Agreement dated January 21, 2004

 EXHIBIT 10.38 
  
 Execution Copy 
  
 STOCK PURCHASE AGREEMENT 
  
 This Stock Purchase Agreement (this “Agreement”) is entered into as of January 21, 2004 by and among DDi Corp., a Delaware corporation (the
“Company”), and the purchasers identified on the Schedule of Investors (the “Purchasers”) attached hereto as Exhibit A (the “Schedule of Investors”). 
  
 WITNESSETH: 
  
 WHEREAS, the parties hereto desire to enter into this Agreement for the purpose of setting forth certain representations,
warranties and covenants made by each to the other as an inducement to the execution and delivery of this Agreement and the conditions precedent to the consummation of the transactions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual
provisions, agreements and covenants contained herein, the parties hereto agree as follows: 
  
 1.     Agreement to Purchase and Sell. 
  
 (a)    Sale and Issuance of Common Stock.    Subject to the terms and conditions of this Agreement, each
Purchaser severally and not jointly agrees to purchase at the Closing (as such term is defined below), and the Company agrees to issue and sell to the Purchasers at the Closing, the number of shares (the “Shares”) of the Company’s
common stock, $0.001 par value (“Common Stock”) set forth opposite each Purchaser’s name on the Schedule of Investors at a purchase price of $15.98 per Share. The aggregate investment in the Common Stock by the Purchasers is up to
$15,980,000.00. 
  
 (b)    Use of
Proceeds.    The Company shall use the proceeds from the sale of the Shares as follows: (i) up to $6,000,000 may be used to repay indebtedness of the Company to the lenders party to that certain Second Amended and
Restated Credit Agreement dated as of December 12, 2003, among the Company, Dynamic Details Incorporated and the lenders and agents party thereto, and (ii) the balance shall be used for working capital purposes. 
  
 2.    Closing.    The
completion of the purchase and sale of the Shares pursuant to Section 1 will take place at the offices of Goodwin Procter LLP, 53 State Street, Boston, MA 02109, at 10:00 a.m., Eastern Time, on January 21, 2004 or at such other place and time as
mutually agreed upon by the Company and the Purchasers (the “Closing”). Prior to the time of Closing, the Company shall deliver to a custodian for each of the Purchasers, one or more stock certificates registered in the name of the nominee
of each custodian, evidencing the shares to be purchased by such Purchaser against delivery to the Company by such Purchaser of the purchase price therefor. Each custodian will execute a receipt of stock certificates in form reasonably satisfactory
to the Company. If, for any reason, the Closing does not occur within forty-eight hours of the Company’s delivery to the custodians of the stock certificates, each custodian shall immediately return such stock certificates to the Company or an
authorized representative thereof. 
  
 3.    Separate Agreements.    The Company’s agreement with each of the Purchasers is a separate agreement, and the sale of the Shares to each of the Purchasers are separate sales, and no
Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. 
  

 4.    Representations, Warranties and Covenants of the
Company.    The Company represents and warrants to, and covenants with, each Purchaser as follows: 
  
 (a)    Organization; Good Standing; Qualification.    The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has full corporate power and authority to conduct its business as presently conducted and as proposed to be conducted by it and to enter into and perform this Agreement and to
carry out the transactions contemplated in this Agreement and the Registration Rights Agreement (as defined below). Each of the Company’s subsidiaries (as defined in Rule 405 under the Securities Act) is duly organized, validly existing and in
good standing under the laws of its jurisdiction of formation and has full corporate, limited liability or other power and authority to conduct its business as presented conducted and as proposed to be conducted by it. The Company and each of its
subsidiaries is duly qualified and in good standing to do business as a foreign corporation in each jurisdiction in which the failure to so qualify would have a material adverse effect on their business, result of operations, prospects, properties
or condition (financial or otherwise) taken as a whole (a “Material Adverse Effect”) and no proceeding has been instituted in any such jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such power and
authority or qualification. The Company owns 100% of the outstanding equity securities of each of its subsidiaries and no other Person has any right to acquire any equity securities of any subsidiary of the Company, except for shares of preferred
stock of DDi Europe Limited issuable to holders of the Company’s Series A Preferred Stock upon conversion or exchange of the Company’s Series A Preferred Stock. 
  
 (b)    Authorization.    The Company has taken all corporate action required
to authorize the execution and delivery of this Agreement and the Registration Rights Agreement attached hereto as Exhibit B (the “Registration Rights Agreement”) and the performance of its obligations hereunder and
thereunder, including the issuance of the Shares. This Agreement and the Registration Rights Agreement are legal, valid and binding agreements of the Company enforceable against the Company in accordance with their respective terms, except as
enforcement may be limited by bankruptcy, insolvency, moratorium or other similar laws relating to creditors’ rights generally and except that the availability of equitable remedies, including specific performance, is subject to the discretion
of the court before which any proceeding therefor may be brought. 
  
 (c)    Valid Issuance of Common Stock.    When issued to and paid for by the Purchasers in accordance with the terms of this Agreement, the Shares will be duly authorized, validly issued, fully
paid and nonassessable free and clear of all liens, and the issuance of the Shares will not be subject to any preemptive or similar rights. 
  
 (d)    Capitalization.    As of the date of this Agreement, the authorized and outstanding capitalization
of the Company consists of (i) a total of 5,000,000 authorized shares of preferred stock, $0.001 par value per share, 1,000,000 of which were issued and outstanding as of the close of business on January 14, 2004, and (ii) a total of 75,000,000
authorized shares of Common Stock, $0.001 par value per share, of which 23,749,926 shares were issued and outstanding as of the close of business on January 14, 2004. All of such outstanding shares are validly issued, fully paid and nonassessable,
have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. In addition to the foregoing,
as of January 14, 2004, (i) options to purchase a total of up to 2,418,758 shares of Common Stock were outstanding under the Company’s 2003 Management Equity Incentive Plan (the “Plan”), (ii) the Company is authorized to issue up to
1,250,000 shares of restricted Common Stock, which are subject to forfeiture under certain circumstances, under the Plan, (iii) the Company is authorized to grant options to purchase up to 2,521,362 additional shares of Common Stock pursuant to the
Plan, (iv) warrants to purchase up to a total of 3,114,078 shares of Common Stock were outstanding pursuant to a Secured Lender Warrant Agreement, dated as of December 12, 2003, subject, pursuant to anti-dilution protection provisions in the Secured
Lender Warrant Agreement, to increases of (x) an additional 114,286 warrant shares as a result of the transactions consummated hereunder and (y) an additional 22,965 warrant shares upon any conversion of the Houlihan Note (defined below) without
giving effect to any accrued and unpaid interest thereon, (v) warrants to purchase up to a total of 778,519 shares of Common Stock were outstanding pursuant to a Senior Discount Warrant Agreement, dated as of December 12, 2003, subject to
anti-dilution protection 

  

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provisions in the Senior Discount Warrant Agreement, to increases of (x) an additional 28,571 warrant shares as a result of the transactions consummated
hereunder and (y) an additional 5,742 warrant shares upon any conversion of the Houlihan Note without giving effect to any accrued and unpaid interest thereon, and (vi) 200,946 shares of Common Stock were issuable upon conversion of a
promissory note issued to Houlihan Lokey Howard & Zukin (the “Houlihan Note”), subject to adjustment for accrued and unpaid interest thereon. In addition, the Company is authorized to issue up to 500,000 shares pursuant to stock
options to be granted to non-employee directors of the Company pursuant to the Company’s 2003 Directors Equity Incentive Plan. Except as set forth in this Section 4(d) of the Agreement, there are no other outstanding options, warrants or
similar agreements or rights for the purchase from the Company of any shares of its capital stock or any securities convertible into or ultimately exchangeable or exercisable for any shares of the Company’s capital stock. Without limiting the
foregoing, no preemptive right, co-sale right, right of first refusal, registration right, or other similar right exists with respect to the issuance and sale of the Shares. No approval or authorization of any stockholder, the Board of Directors of
the Company or others is required for the issuance and sale of the Shares. Except as disclosed in the Disclosure Documents (as defined below), there are no stockholders agreements, voting agreements or other similar agreements with respect to the
Common Stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders. 
  
 (e)    Defaults.    Neither the issuance and sale of the Shares hereunder nor execution and delivery of
this Agreement and the Registration Rights Agreement and the performance of the Company’s other obligations hereunder or thereunder will (A) violate or conflict with, result in a breach of or constitute a default (or an event that, with notice
or lapse of time, would constitute a default) under (i) the certificate of incorporation or bylaws of the Company; (ii) any decree, judgment, order or determination of any court, governmental agency or body, or any arbitrator having jurisdiction
over the Company or any of the Company’s assets; (iii) any law, rule or regulation applicable to the Company or its subsidiaries; or (iv) the terms of any material agreement or agreement required to be filed with the Commission (as defined
below) by which the Company or any of its subsidiaries is bound or to which any property of the Company or any of its subsidiaries is subject, except where such violations, conflicts, breaches or defaults would not, individually or in the aggregate,
have a Material Adverse Effect, or (B) result in the creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the material properties or assets of the Company or any of its subsidiaries or an
acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement or
instrument to which the Company or any of its subsidiaries is a party or by which it is bound or to which any of the material property or assets of the Company or any of its subsidiaries is subject. Neither the sale of the Shares hereunder nor the
performance of the Company’s other obligations under this Agreement or the Registration Rights Agreement will result in the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization, right or
approval applicable to the Company or any of its subsidiaries, its businesses or operations or any of its assets or properties. No consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory
body, administrative agency, or other governmental body in the United States or any other person is required for the execution and delivery of this Agreement and the Registration Rights Agreement and the valid issuance and sale of the Shares to be
sold pursuant to this Agreement, other than such as have been made or obtained, and except for any post-closing securities filings or notifications required to be made under federal or state securities laws. Based in part on the representations made
by each of the Purchasers in this Agreement, the offer and sale of the Shares to each of the Purchasers will be in compliance with applicable federal and state securities laws. 
  
 (f)    General Solicitation.    Neither the Company nor any person acting on
behalf of the Company has offered or sold any of the Shares by any form of general solicitation or general advertising. The Company has offered the Shares for sale only to the Purchasers and certain other “accredited investors” within the
meaning of Rule 501 under the Securities Act of 1933, as amended (the “Securities Act”). 
  
 (g)    SEC Filings.    The Company’s Annual Report on Form 10-K for the year ended December 31, 2002,
the Company’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2003, June 30, 2003 and September 30, 2003, all Current Reports on Form 8-K filed by the Company and all other documents, if 

  

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any, filed by the Company with the Securities and Exchange Commission (the “Commission”) since January 1, 2003 (collectively, the “Disclosure
Documents”), as of the respective dates thereof, do not contain any untrue statements of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances
under which they were made not misleading. The Disclosure Documents have been prepared in all material respects in compliance with the requirements of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). The Company has timely made all filings required under the Exchange Act during the twelve months preceding the date of this Agreement and, until a registration statement covering the resale of the Shares by the Purchasers shall have been
filed with, and declared effective by the Commission, the Company shall timely make all filings required under the Exchange Act. The Company is in compliance with the applicable requirements of the Sarbanes-Oxley Act of 2002 and the rules and
regulations thereunder promulgated by the Commission. 
  
 (h)    Financial Statements.    The consolidated financial statements of the Company included in each of the Disclosure Documents, including the schedules and notes thereto, comply in all
material respects with all applicable accounting requirements and the requirements of the Securities Act or the Exchange Act (as applicable) and all rules and regulations promulgated thereunder, fairly present, the financial condition and results of
operations and cash flows of the Company and its subsidiaries at the respective dates and for the respective periods indicated and have been prepared in accordance with generally accepted accounting principles (“GAAP”) consistently applied
throughout such periods; provided, however, that unaudited financial statements contained in the Disclosure Documents have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, and certain
information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such regulations. The Company maintains and will continue to maintain a standard system of accounting
established and administered in accordance with GAAP and the applicable requirements of the Exchange Act. The other financial information contained in the Disclosure Documents has been prepared on a basis consistent with the financial statements of
the Company. 
  
 (i)    No Material Adverse
Change.    Except as described in Schedule 4(i), since September 30, 2003, there has not been (a) any material adverse change in the properties, business, results of operations, prospects or condition (financial or
otherwise) of the Company and its subsidiaries, taken as a whole (b) any material adverse event affecting the Company, (c) any obligation or liability, direct or contingent, that is material to the Company, incurred by the Company or any of its
subsidiaries, except obligations incurred in the ordinary course of business, (d) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company, (e) any loss or damage (whether or not insured) to the physical
property of the Company which has been sustained which could reasonably be expected to have a Material Adverse Effect or (f) any change in the Company’s method of accounting. 
  
 (j)    Offering.    Subject in part to the truth and accuracy of each
Purchaser’s representations set forth in Section 5 of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority
on the part of the Company is required in connection with the consummation of the transactions contemplated by this Agreement, except for filings under applicable federal and state securities laws which may be made after the Closing. 
  
 (k)    Intellectual Property. 
  
 (i)  Except as described in Schedule 4(k),
the Company and its subsidiaries has exclusive ownership or a valid license or legal right to use all patent, copyright, trade secret, trademark, customer lists, designs, formulas, manufacturing or other processes, computer software, systems, data
compilation, research results or other proprietary rights used in the business of the Company and its subsidiaries and material to the Company and its subsidiaries, taken as a whole, (collectively, “Intellectual Property”) other
than Intellectual Property generally available on commercial terms from other sources. All of such patents, trademarks and copyrights owned by the Company have been duly 

  

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registered in, filed in or issued by the United States Patent and Trademark Office, the United States Register of Copyrights or the corresponding offices of
other jurisdictions in which the Company and its subsidiaries has registered such patents, trademarks and copyrights and have been maintained and renewed in accordance with all applicable provisions of law and administrative regulations in the
United States and all such jurisdictions. 
  
 (ii)  All material licenses or other material agreements under which (i) the Company or any of its subsidiaries is granted rights in Intellectual Property, other than Intellectual Property generally available on commercial terms
from other sources, and (ii) the Company and its subsidiaries have granted rights to others in Intellectual Property owned or licensed by the Company, are in full force and effect and, to the knowledge of the Company, there is no material default by
the Company thereto. 
  
 (iii)  Except
as described in Schedule 4(k), no proceedings have been instituted or are pending which challenge the rights of the Company or any of its subsidiaries in respect to the Company’s or any of its subsidiaries’ right to the use of the
Intellectual Property. The Company and its subsidiaries have the right to use, free and clear of material claims or rights of other persons, all of its customer lists, designs, formulas, computer software, systems, data compilations, and other
information that are required for its products or its business as presently conducted. 
  
 (iv)  The Company believes it has taken all steps required in accordance with sound business practice and business judgment to
establish and preserve its ownership of all material copyright, trade secret and other proprietary rights with respect to its products and technology, including obtaining written agreements from its employees regarding confidentiality and
assignments of inventions. 
  
 (v)  Except as described in Schedule 4(k), the present business, activities and products of the Company and its subsidiaries do not infringe any intellectual property of any other person, except where such infringement would not
have a Material Adverse Effect. Except as described in Schedule 4(k), no proceeding charging the Company or any of its subsidiaries with infringement of any adversely held Intellectual Property has been filed. There exists no third party unexpired
patent or patent application which includes claims that would be infringed by, or otherwise have a Material Adverse Effect. To the knowledge of the Company, neither the Company nor any of its subsidiaries is making unauthorized use of any
confidential information or trade secrets of any person. Neither the Company, its subsidiaries nor, to the knowledge of the Company, any of its employees have any agreements or arrangements with any persons other than the Company related to
confidential information or trade secrets of such persons, other than such agreements that would not restrict the Company or any of its subsidiaries from conducting its business as currently conducted. 
  
 (l)    Contracts.    Neither
the Company nor any of its subsidiaries is in violation or default (i) of any provision of its certificate of incorporation or bylaws or other charter document, as amended, or (ii) of any instrument, judgment, order, writ, decree or contract or in
the performance of any bond, debenture, note or other evidence of indebtedness to which it is a party or by which it is bound, nor is the Company or any of its subsidiaries in violation of any provision of any federal or state statute, rule or
regulation or any law, ordinance or order of any court or governmental agency or authority applicable to the Company or its subsidiaries, which violations would, individually or in the aggregate, have a Material Adverse Affect. The contracts
described in the Disclosure Documents or incorporated by reference therein that are material to the Company are in full force and effect on the date hereof, and neither the Company, any of its subsidiaries, nor, to the Company’s knowledge, any
other party to such contracts is in breach of or default under any of such contracts which would have a Material Adverse Effect. 
  
 (m)    Exchange Act Registration.    The Common Stock is registered pursuant to Section 12(g) of the
Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company 

  

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received any notification that the Commission is contemplating terminating such registration. The Company (i) has filed an application to list the
Common Stock on the Nasdaq National Market (the “NNM”), (ii) meets the listing requirements for listing its common stock on the NNM and (iii) will use its best efforts to effect such listing on the NNM. 
  
 (n)    Taxes.    Except as
described in Schedule 4(n), the Company and all its subsidiaries have filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of
a tax deficiency which has been asserted or threatened against the Company or any of its subsidiaries. 
  
 (o)    Legal Proceedings.    Except as described in Schedule 4(o), there is no action, suit,
inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any of its subsidiaries or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of this
Agreement and the Registration Rights Agreement or the issuance of the Shares or (ii) would, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Except as described in Schedule 4(o),
neither the Company, its subsidiaries, nor, to the knowledge of the Company, any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim
of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company, any of its subsidiaries or any current or former director or
officer of the Company or any of its subsidiaries. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1934 Act or the Securities Act. 
  
 (p)    Governmental Permits,
Etc.    The Company and its subsidiaries have all necessary franchises, licenses, certificates and other authorizations (collectively, “Permits”) from any foreign, federal, state or local government or governmental
agency, department, or body that are currently necessary for the operation of the business of the Company and its subsidiaries as currently conducted except where the failure to currently possess could not reasonably be expected to have a Material
Adverse Effect. Neither the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification of any Permit. 
  

(q)    Disclosure.    The Company understands and confirms that the Purchasers have and will rely on the
foregoing representations and covenants in effecting transactions in securities of the Company. All disclosure provided to the Purchasers regarding the Company, its business and the transactions contemplated hereby furnished by or on behalf of the
Company are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not
misleading. 
  
 (r)    No Manipulation of
Stock.    The Company has not taken and will not, in violation of applicable law, take, any action designed to or that might reasonably be expected to cause or result in stabilization or manipulation of the price of the
Common Stock to facilitate the sale or resale of the Shares. 
  
 (s)    Company not an “Investment Company”.    The Company has been advised of the rules and requirements under the Investment Company Act of 1940, as amended (the “Investment
Company Act”). The Company is not, and immediately after receipt of payment for the Shares will not be, an “investment company” or an entity “controlled” by an “investment company” within the meaning of the
Investment Company Act and shall conduct its business in a manner so that it will not become subject to the Investment Company Act. 
  
 (t)    Foreign Corrupt Practices.    Neither the Company, its subsidiaries, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company or its subsidiaries, has (i) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful expenses 

  

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related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign
or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any of its subsidiaries (or made by any person acting on their behalf of which the Company is aware) which is in
violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
  
 (u)    Accountants.    PriceWaterhouseCooper LLP, who the Company expects will express their opinion with
respect to the financial statements to be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, are independent accountants as required by the Securities Act and the rules and regulations promulgated
thereunder. 
  
 (v)    Transfer
Taxes.    On the Closing date all stock transfer or other taxes (other than income taxes) which are required to be paid in connection with the sale and transfer of the Shares to be sold to the Purchasers hereunder on the
Closing date, will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with. 
  
 (w)    Insurance.    The Company and its subsidiaries are insured by insurers
of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company is engaged. The Company does not have any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost, except for such increases in cost or
decreases in coverage as are likely to be experienced by similarly situated companies. 
  
 (x)    Transactions With Affiliates And Employees.    Except as described in the Disclosure Documents, none of the officers or directors of the Company or any of its
subsidiaries and, to the knowledge of the Company, none of the employees of the Company or any of its subsidiaries is presently a party to any transaction with the Company or any of its subsidiaries (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director
or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $60,000 other than (a) for
payment of salary or consulting fees for services rendered, (b) reimbursement for expenses incurred on behalf of the Company or any of its subsidiaries and (c) for other employee benefits, including stock option agreements under any stock option
plan of the Company. 
  
 (y)    Internal
Accounting Controls.    The Company and its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has
established disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and its subsidiaries and designed such disclosure controls and procedures to ensure that material information relating to the Company
and its subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s Form 10-K or 10-Q, as the case may be, is being prepared. The Company’s certifying
officers evaluated the effectiveness of the Company’s controls and procedures as of the end of the period covered by the Form 10-Q for the quarter September 30, 2003 (such date, the “Evaluation Date”). The Company presented in its
Form 10-Q for the quarter ended September 30, 2003 the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the Company’s knowledge, in other factors that could significantly affect the
Company’s internal controls. The Company is not aware of any reason PriceWaterhouseCoopers LLP will not be able to favorably attest to the effectiveness of the Company’s internal controls and procedures. 
  

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 (z)    Certain Fees.    Other than a fee of $728,900 to be
paid by the Company to Houlihan Lokey Howard & Zukin at the Closing, no brokerage or finder’s fees or commissions are or will be payable by the Company or any of its subsidiaries to any broker, financial advisor or consultant, finder,
placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement. To the knowledge of the Company, the Purchasers shall have no obligation with respect to any fees or with respect to any claims
made by or on behalf of other persons for fees of a type contemplated in this section that may be due in connection with the transactions contemplated by this Agreement. 
  
 (aa)    Registration Rights.    Except as described in Schedule 4(y)
and except pursuant to the Registration Rights Agreement, no person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
  
 (bb)    No Integrated
Offering.    Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security,
under circumstances that would cause this offering of the Shares to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable shareholder approval provisions, including, without limitation, under the
rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Purchasers or that would
be integrated with the offer or sale of the Shares for purposes of the rules and regulations of the Nasdaq National Market. 
  
 (cc)    Form S-3 Eligibility.    The Company shall use its best efforts to become eligible to register its
Common Stock using Form S-3 promulgated under the Securities Act and once the Company becomes eligible to use Form S-3 it shall use its best efforts to maintain its eligibility to use Form S-3 until the end of the Effectiveness Period (as defined in
the Registration Rights Agreement). Assuming the Company’s common stock is listed for trading on the Nasdaq National Market and the Company files its annual report on Form 10-K on or before March 30, 2003, the Company will be eligible to use
Form S-3 on March 31. 2004. 
  
 (dd)    Material Non-Public Information.    The Company has not provided any of the Purchasers or their counsel with any material non-public information regarding the Company or its securities.

  
 (ee)    Properties.    Except as described in Schedule 4(cc), the Company and its subsidiaries have good and marketable title to all the properties and assets reflected as owned
by them in the financial statements included in or incorporated by reference into the Disclosure Documents, subject to no lien, mortgage, pledge, charge or encumbrance of any kind except (a) those, if any, reflected in such financial statements, (b)
those of the United States Government to exercise rights with respect to inventions made with Government support, or (c) those which are not material in amount and do not adversely affect the use made and promised to be made of such property by the
Company or any of its subsidiaries. The Company and its subsidiaries hold their leased properties under valid and binding leases, with such exceptions as are not materially significant in relation to their respective businesses. Except as disclosed
in the Disclosure Documents, the Company and its subsidiaries own or lease all such properties as are necessary to its operations as now conducted. 
  
 (ff)    Solvency.    Based on the financial condition of the Company and its subsidiaries on a consolidated
basis as of the Closing date (and assuming that the Closing shall have occurred), (a) the fair saleable value of the assets of the Company and its subsidiaries on a consolidated basis exceeds the amount that will be required to be paid on or in
respect, the existing debts and other liabilities (including known contingent liabilities) of the Company and its subsidiaries on a consolidated basis as they mature, (b) the assets of the Company and its subsidiaries on a consolidated basis,
together with such additional capital as the Company believes is reasonably available to the Company and its subsidiaries, do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as
proposed to be conducted including its 

  

 8 

 
capital needs taking into account the particular capital requirements of the business conducted by the Company and its subsidiaries, and (c) the current cash
flow, together with the proceeds of the Company and its subsidiaries on a consolidated basis would receive were it to liquidate all of its assets, after taking into account all anticipated uses of the cash would be sufficient to pay all amounts on
or in respect of its debt when such amounts are required to be paid. Neither the Company nor any of its subsidiaries intends to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be
payable on or in respect of its debt). 
  
 (gg)    Application of Takeover Protections.    The Company has taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or similar anti-takeover provision under the Company’s Certificate of Incorporation or the laws of Delaware or any agreement to which the Company is a party that is or could become
applicable to the Purchasers as a result of their and the Company’s fulfillment of their respective obligations or the exercise of their respective rights under this Agreement, including without limitation the Company’s issuance of the
Shares and the Purchasers’ ownership thereof. 
  
 (hh)    Certain Registration Matters.    Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 5, no registration under the Securities Act is
required for the offer and sale of the Shares by the Company to the Purchasers under this Agreement. The Company is eligible to register the resale of its Common Stock by the Purchasers under Form S-1 promulgated under the Securities Act.

  
 5.    Representations and Warranties of
the Purchasers.    Each Purchaser (severally and not jointly) represents and warrants, as of the date hereof as follows: 
  
 (a)    Authorization.    Such Purchaser has the capacity to enter into this Agreement and to purchase the
Shares from the Company pursuant to the terms and conditions of this Agreement. This Agreement is a legal, valid and binding agreement of the Purchaser enforceable against the Purchaser in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, moratorium or other similar laws relating to creditors’ rights generally and except that the availability of equitable remedies, including specific performance, is subject to the discretion of the court before
which any proceeding therefor may be brought. If such Purchaser is a corporation, partnership or other entity, such Purchaser has taken, or prior to the Closing, will have taken, all corporate, partnership or other action (as applicable) required to
authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. 
  
 (b)    Reliance Upon Purchaser’s Representations.    Such Purchaser represents that the Shares are
being purchased for the Purchaser’s own account, for investment and not for distribution or resale to others. Such Purchaser understands that the issuance of the Shares hereunder has not been registered under the Securities Act, based on the
exemption from registration provided by Section 4(2) of the Securities Act, and that the Company’s reliance on such exemption depends in part on such Purchaser’s representations and warranties in this Agreement. 
  
 (c)    Restricted
Securities.    Such Purchaser understands that the Shares constitute “restricted securities” within the meaning of Rule 144 under the Securities Act and may not be sold, pledged or otherwise disposed of unless they
are subsequently registered under the Securities Act and applicable state securities laws or unless an exemption from registration is available. 
  
 (d)    Accredited Investor.    Such Purchaser is an “accredited investor” within the meaning of
Rule 501(a) under the Securities Act. 
  

 9 

 (e)    Legends.    Such Purchaser understands that any
certificates evidencing the Shares will bear substantially the following legend: 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE
SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REQUIREMENTS OF SUCH ACT AND THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.” 
  
 Certificates evidencing the Shares shall not contain any legend (i) following any sale of
such Shares pursuant to Rule 144 or pursuant to an effective registration statement, or (ii) if such Shares are eligible for sale under Rule 144(k), or (iii) if such legend is not required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the Staff of the Commission). The Company agrees that at such time as such legend is no longer required under this section, the Company shall cause its counsel to promptly issue a
legal opinion to the Company’s transfer agent if required by the Company’s transfer agent to effect the removal of the legend hereunder as and when any Purchaser so requests. The Company agrees that at such time as such legend is no longer
required under this section, it will, promptly following the delivery by a Purchaser to the Company or the Company’s transfer agent of a certificate representing Shares issued with a restrictive legend, deliver or cause to be delivered to such
Purchaser a certificate representing such Shares that is free from all restrictive and other legends. 
  
 6.    Conditions to Closing.    The obligations hereunder of the Company, on the one hand, and each of the
Purchasers, on the other hand, at the Closing are subject to (a) the accuracy of the representations and warranties of the other, (b) the performance by the other of its or their obligations hereunder that are required to be performed at or prior to
the Closing, (c) the Registration Rights Agreement being executed and delivered by the Company and each of the Purchasers, and thereupon shall be in full force and effect, (d) this Agreement being executed and delivered by the Company and each of
the Purchasers, and thereupon shall be in full force and effect, (e) the Purchasers shall have received a legal opinion of counsel to the Company dated as of the Closing date in form satisfactory to the Purchasers and (f) the Company shall have
reimbursed the Purchasers for all their reasonable legal fees and disbursements and other out of pocket expenses incurred by them in connection with the transactions contemplated by this Agreement. 
  
 7.    Survival.    All
representations, warranties and covenants contained in this Agreement or made in writing by or on behalf of the Company in connection with the transactions contemplated by this Agreement shall survive, (a) for the duration of any statues of
limitation applicable thereto, (b) the Closing, (c) any investigation at any time made by the Company, a Purchasers or on such parties’ behalf, and (d) any post-closing disposition of or payment on the Shares. All statements contained in any
certificate or other instrument delivered to the Purchaser by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. 
  
 8.    Miscellaneous. 
  
 (a)    Entire Agreement; Amendments;
Waivers.    The terms and conditions of this Agreement and the Registration Rights Agreement in effect between the Company and each Purchaser represent the entire agreement between the parties with respect to the subject
matter hereof and thereof, and supersede any prior agreements or understandings, whether written or oral, between the parties respecting such subject matter. No provision of this Agreement may be waived or amended except in a written instrument
signed, in the case of an amendment, by the Company and each Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any
right hereunder in any manner impair the exercise of any such right. 
  

 10 

 (b)    Successors and Assigns.    This Agreement inures to
the benefit of and is binding upon the parties hereto and their respective successors, and no other person has any right or obligation hereunder. No Purchaser may assign this Agreement or any rights or obligations hereunder, other than to
“affiliates” (as such term is defined in Rule 144 under the Securities Act) of such Purchaser or to a transferee who is also assigned such Purchaser’s rights in and to the Registration Rights Agreement, without the prior written
consent of the Company, such consent not to be unreasonably withheld, provided that any permitted transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions hereof that apply to the “Purchasers”.
The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser. Any assignment contrary to the terms hereof is null and void and of no force or effect. 
  
 (c)    GOVERNING LAW.    THE
CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF
THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE. 
  
 (d)    Counterparts.    This Agreement may be executed in one or more counterparts, and such counterparts
will together constitute one and the same agreement. 
  
 (e)    Notices.    All notices and other communications required or permitted hereunder must be in writing and, except as otherwise noted herein, must be addressed as follows: 
  

	 	(i)	if to the Company, to: 

  
 DDi Corp. 
 1220 Simon Circle 
 Anaheim, CA 92806 
 Attention: Timothy J. Donnelly, Esq., Vice President & General Counsel 
 Facsimile: (714) 688-7619 
  
 with a copy to: 
  
 Paul, Hastings, Janofsky & Walker LLP 
 695 Town Center Drive, 17th Floor 
 Costa Mesa, CA 62626 
 Attention: John Della Grotta 
 Fax: (714) 979-1921 
  
 (ii)    if to any Purchaser, at the address shown for such Purchaser on the Schedule of Investors, marked for attention as there indicated. 
  
 or to such other address as the party to whom notice is to be given may have furnished to the other in writing in accordance with the
provisions of this Section 8(e). Any such notice or communication will be deemed to have been received: (x) in the case of telecopy or personal delivery, on the date of such delivery; (y) in the case of nationally-recognized overnight courier, on
the next business day after the date sent; and (z) if by registered or certified mail, on the third business day following the date postmarked. 
  
 (f)    Expenses.    The Company will reimburse the Purchasers for all their reasonable legal fees and
expenses and other out of pocket expenses incurred by them in connection with the negotiation of this Agreement, the Registration Rights Agreement and related documents and agreements and from time to time in connection with any waiver, consent,
restatement or amendment thereof. 
  

 11 

 (g)    Headings.    The descriptive headings herein have
been inserted for convenience only and are not to be deemed to limit or otherwise affect the construction of any provisions hereof. 
  
 9.    Indemnification.    The Company agrees to indemnify and hold harmless each Purchaser, its respective
subsidiaries, any affiliate of any of them and their respective officers, directors and employees and any person who controls (within the meaning of the Securities Act) of any of them (each a “Purchaser Indemnified Party,”) from and
against any liabilities, obligations, losses, damages, amounts paid in settlement, penalties, actions, judgments, fines, suits, claims, costs, attorneys’ fees, expenses and disbursements of any kind (“Losses”) which may be imposed
upon, incurred by or asserted against any Purchaser Indemnified Party in any manner relating to or arising out of (i) any untrue representation, breach of warranty or failure to perform any covenants or agreement by the Company contained herein, in
the Registration Rights Agreement or in any certificate or document delivered pursuant hereto or (ii) any third party or governmental claims relating in any way to such Indemnified Party’s status as a security holder, creditor, director, agent,
representative or controlling person of the Company or otherwise relating to such Indemnified Party’s involvement with the Company (including, without limitation, any and all Losses under the Securities Act, the Exchange Act or other federal or
state statutory law or regulation, at common law or otherwise, which relate directly or indirectly to the registration, purchase, sale or ownership of any securities of the Company or to any fiduciary obligation owed with respect thereto),
including, without limitation, in connection with any third party or governmental action or claim relating to any action taken or omitted to be taken or alleged to have been taken or omitted to have been taken by any Indemnified Party as security
holder, director, agent, representative or controlling person of the Company or otherwise, alleging so-called control person liability or securities law liability, but excluding any Losses resulting from such Purchaser Indemnified Party’s
breach or violation of the Securities Act, the Exchange Act or other federal or state statutory law or regulation. The Company will also advance expenses as incurred to the fullest extent permitted under applicable law; provided, however, that the
Purchaser Indemnified Party provides an undertaking to repay such advances to Company if it is ultimately judicially determined that such Purchaser Indemnified Party is not entitled to indemnification. The Purchasers and the Company will cooperate
in the defense of any such matter. 
  
 10.    Limitation of Liability.    A copy of the Agreement and Declaration of Trust of each Purchaser is on file with the Secretary of State of the Commonwealth of Massachusetts and notice is
hereby given that this Agreement is executed on behalf of the Trustees of each Purchaser as Trustees and not individually and that the obligations of this Agreement are not binding upon any of the Trustees, officers or stockholders of the Purchaser
individually but are binding only upon the assets and property of such Purchaser. The Company is expressly put on notice that the rights and obligations of each series of shares of each Purchaser under its Declaration of Trust are separate and
distinct from those of any and all other series. 
  
 11.    Publicity.    The Company agrees that it will not use in advertising or publicity the names of the Purchaser, Fidelity Management & Research Company, any of its partners or
employees, any of the funds or accounts managed by it or any of its affiliates, or any trade name, trademark, trade device, service mark, symbol or any abbreviation, contraction or simulation thereof, in any case without the prior written consent of
Fidelity Management & Research Company. 
  
 [signature pages
follow] 
  

 12 

 IN WITNESS WHEREOF, the parties have entered into this Stock Purchase Agreement as of the date first set
forth above. 
  

			
	DDi Corp.
		
	By:	 	/s/    TIMOTHY J. DONNELLY        
	 	 	

	 	 	 Name:  Timothy J. Donnelly

	 	 	 Title:    Vice President

  

			
	FIDELITY ADVISOR SERIES I:
	FIDELITY ADVISOR LEVERAGED
	COMPANY STOCK FUND
		
	By:	 	/s/    JOHN N. COSTELLO         
	 	 	

	 	 	 Name:  John N. Costello

	 	 	 Title:    Assistant Treasurer

  

			
	FIDELITY SECURITIES FUND:
	FIDELITY LEVERAGED COMPANY
	STOCK FUND
		
	By:	 	/s/    JOHN N. COSTELLO         
	 	 	

	 	 	 Name:  John N. Costello

	 	 	 Title:    Assistant Treasurer

  

			
	Address for Holders:
	82 Devonshire Street
	Boston, MA 02109-3617
	Attn: Nathan Van Duzer
	Facsimile: (617) 476-7774
	
	With a copy to:
	Goodwin Procter LLP
	53 State Street
	Boston, MA 02109
	Attn: H. David Henken, P.C.
	Facsimile: (617) 523-1231

  
  
  

 Exhibit A 
 Schedule of Investors 
  

						
	 Investor

	  	Total

	  	Number of
Shares

	 Fidelity Advisor Series I:
Fidelity Advisor Leveraged Company Stock Fund
	  	$	1,118,600	  	70,000
	 Fidelity Securities Fund:
Fidelity Leveraged Company Stock Fund
	  	$	14,861,400	  	930,000
	 	  	
	
	  	

	 Total
	  	$	15,980,000.00	  	1,000,000
	 	  	
	
	  	

  

 Exhibit B 
 Registration Rights AgreementRegistration Rights Agreement dated January 21, 2004

 EXHIBIT 10.39 
  
 EXECUTION COPY 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of January 21, 2004 by and among DDi Corp., a Delaware corporation (the
“Company”), and certain purchasers of the Company’s capital stock listed on the signature pages below (the “Holders”). 
  
 WITNESSETH 
  
 WHEREAS, the Company and the Holders entered into a Stock Purchase Agreement (the “Purchase Agreement”) as of January 21, 2004, providing, among
other things, for the Holders’ purchase of up to 1,000,000 shares (the “Shares”) of the Company’s Common Stock, $0.001 par value; and 
  
 WHEREAS, in consideration of the sale of the Shares pursuant to the Purchase Agreement, the Company agreed to grant certain rights to the Holders as set
forth in this Agreement. 
  
 NOW, THEREFORE, the parties hereby
agree as follows: 
  
 1. Registration Rights. The Company covenants and
agrees as follows: 
  
 1.1 Definitions. Terms defined in
the Purchase Agreement and not otherwise defined herein are used herein with the same meanings as defined in the Purchase Agreement. As used in this Agreement, the following capitalized defined terms shall have the following meanings: 
  
 “Advice” has the meaning set forth in Section 1.3(b).

  
 “Affiliate” means, with respect to any
Person, any other Person that directly or indirectly controls or is controlled by or is under common control with such Person. For the purposes of this definition, “control”, when used with respect to any Person, means possession, direct
or indirect, of the power to direct or cause the direction of the management and policies of the such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms of “affiliated”,
“controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Business Day” means a day other than a Saturday, Sunday or other day on which banking institutions in New York, New York are permitted or required by any applicable law to close. 

 
 “Commission” means the Securities and Exchange
Commission. 
  
 “Company” has the meaning
set forth in the Preamble and also includes the Company’s successors. 
  
 “Delay Notice” has the meaning set forth in Section 1.2(c). 
  
 “Delay Period” has the meaning set forth in Section 1.2(c). 
  
 “Effectiveness Period” has the meaning set forth in Section 1.2(b). 
  
 “Exchange Act” means the Securities Exchange Act of
1934, as amended from time to time. 
  
 “Holder”
or “Holders” has the meaning set forth in the Preamble or each Person to whom a Holder Transfers Registrable Securities in accordance with Section 1.8. 
  

 “Inspectors” has the meaning set forth in Section 1.3(a)(xii). 
  
 “NASD” means the National Association of Securities
Dealers, Inc. 
  
 “Non-affiliated Holders”
means all of the Holders, except for those Holders who, as of the date of this Agreement, are Affiliates. 
  
 “Person” means an individual, partnership, corporation, limited liability company, trust, estate, unincorporated organization, or
other entity, or a government or agency or political subdivision thereof. 
  
 “Preferred Stock” means the preferred stock of the Company, par value $0.001 per share. 
  
 “Prospectus” shall mean the prospectus included in a Shelf Registration Statement, including any preliminary prospectus, and any
such prospectus as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to a prospectus, including post-effective amendments, and, in each case, including all documents incorporated by reference therein. 
  
 “Records” has the meaning set forth in Section 3(a)(xii). 
  
 “Registrable Securities” means the Shares and any
Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, such Shares,
excluding in all cases, however, (i) any Registrable Securities sold by a person in a transaction in which such person’s rights under this Agreement are not assigned, or (ii) any Registrable Securities sold to or through a broker or dealer or
underwriter in a public distribution or a public securities transaction. 
  
 “Rule 144” and “Rule 145” mean Rule 144 and Rule 145 promulgated under the Securities Act. 
  
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 
  
 “Shelf Registration” shall mean a registration
effected pursuant to Section 1.2(a). 
  
 “Shelf
Registration Statement” shall mean a “shelf’ registration statement of the Company pursuant to the provisions of Section 1.2 which covers all of the Registrable Securities, on an appropriate form under Rule 415 under
the Securities Act, or any successor or similar rule that may be adopted by the Commission, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all documents incorporated by reference therein. 
  
 “Purchase Agreement” has the meaning set .forth in the Recitals. 
  
 “Transfer” means and includes the act of selling, giving, transferring, creating a trust (voting or otherwise), assigning or
otherwise disposing of (other than pledging, hypothecating or otherwise transferring as security or any transfer upon any merger or, consolidation) (and correlative words shall have correlative meanings); provided, however, that any transfer
or other disposition upon foreclosure or other exercise of remedies of a secured creditor after an event of default under or with respect to a pledge, hypothecation or other transfer as security shall constitute a Transfer. 
  
 “Violation” has the meaning set forth in Section
1.4(a). 
  
  

 2 

 1.2 Registration. 
  
 (a) Registration Requirement. The Company shall file with the Commission a Shelf Registration
Statement meeting the requirements of the Securities Act within thirty (30) days following the Closing, and will use its best efforts to cause the Shelf Registration Statement to be declared effective by the Commission as soon as reasonably
practicable thereafter and in any event not later than seventy-five (75) days after the Closing. Each Holder agrees to furnish to the Company all information with respect to such Holder necessary to make the information set forth in the Shelf
Registration Statement or Prospectus not materially misleading. 
  
 (b) Effectiveness Requirement. The Company agrees to use its best efforts to keep the Shelf Registration Statement continuously effective and the Prospectus usable for resales for a period commencing on the
date that such Shelf Registration Statement is initially declared effective by the Commission and terminating on the date when all of the Registrable Securities covered by such Shelf Registration Statement have been sold pursuant to such Shelf
Registration Statement or cease to be Registrable Securities (the “Effectiveness Period’); provided, however, the Company is permitted to suspend sales of the Registrable Securities during any Delay Period. The
Company will be deemed not to have used its best efforts to cause the Shelf Registration Statement to become, or to remain, effective during the requisite period if it voluntarily takes any action or omits to take any action that would result in the
Shelf Registration Statement not being declared effective or that would result in the Holders of Registrable Securities covered thereby not being able to offer and sell such Registrable Securities during that period, unless such action or omission
is required by applicable law and except during any Delay Period. 
  
 (c) Delay Period. The term “Delay Period” means, with respect to any obligation to keep any Shelf Registration Statement or Prospectus usable for resales pursuant to this Section 1.2,
the shortest period of time determined in good faith by the Company’s Board of Directors to be necessary for such purpose when there exist circumstances relating to a material pending development, including, but not limited to, a pending or
contemplated material acquisition or merger or other material transaction or similar event, which would require disclosure by the Company in such Shelf Registration Statement or Prospectus of material information which the Company determines in good
faith upon the advice of its counsel that it has a bona fide business purpose for keeping confidential and non-public and the non-disclosure of which in such Shelf Registration Statement or Prospectus might cause such Shelf Registration
Statement or Prospectus to fail to comply with applicable disclosure requirements. A Delay Period shall commence on and include the date that the Company gives written notice (a “Delay Notice”) to the Holders that the
Prospectus is no longer usable as a result of a material pending development and shall end on the date when the Holders are advised in writing by the Company that the current Delay Period has terminated (it being understood that the Company shall
give such notice to all Holders promptly upon making the determination that the Delay Period has ended); provided, however, and notwithstanding anything herein to the contrary the Company is only entitled to three (3) Delay Periods
having durations of not more than thirty (30) days each during any consecutive 12 month period, and not to exceed more than seventy-five (75) days in the aggregate in any consecutive 12 month period. The Company covenants and agrees that it will not
deliver a Delay Notice with respect to a Delay Period unless Company employees, officers and directors and their Affiliates and any other holders of registration rights with respect to the Company’s Common Stock are also prohibited by the
Company for the duration of such Delay Period from effecting any public sales of shares of Common Stock or Preferred Stock beneficially owned by them. The Company represents that it has no knowledge of any circumstance that would reasonably be
expected at the time of the effectiveness of the Shelf Registration Statement pursuant to Section 1.2(a) to cause the Company to exercise its rights under this Section 1.2(c). Without limiting any of the foregoing, but for the purpose of additional
clarity, the Company shall not commence any Delay Period until after the Shelf Registration Statement is filed with the Commission. 
  
 (d) Notice. The Company will, in the event a Shelf Registration Statement is declared effective, provide to each Holder a
reasonable number of copies of the Prospectus which is a part of such Shelf 

  

 3 

 
Registration Statement, notify each such Holder when such Shelf Registration Statement has become effective and take such other actions as are required to
permit unrestricted resales of the Registrable Securities. The Company further agrees to supplement or amend each Shelf Registration Statement if and as required by the rules, regulations or instructions applicable to the registration form used by
the Company for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations thereunder for shelf registrations, and the Company agrees to furnish to the Holders of Registrable Securities copies of any such
supplement or amendment promptly after its being used or filed with the Commission. 
  
 (e) Liquidated Damages. If the Shelf Registration Statement is not effective by the ninetieth (90th) day after the Closing, then the Company will pay to each Holder as liquidated damages and not a penalty, an amount in cash
equal to 1.0% of the amount invested by each such Holder for each month or part thereof that such Shelf Registration Statement is not so effective, payable in weekly installments. If a stop order, injunction or other order or requirement of the
Commission or any other governmental agency or court is imposed or if for any other reason the effectiveness of the Shelf Registration Statement is suspended, then the Company shall pay liquidated damages to each Holder, as liquidated damages and
not a penalty, an amount in cash equal to 1.0% of the amount invested by each such Holder for each month or part thereof that such Shelf Registration Statement is not so effective, payable in weekly installments. Notwithstanding the preceding
sentence, the Holders will not be entitled to receive liquidated damages under this Section 1.2(e) during a Delay Period (subject to the duration restrictions in Section 1.2(c)). Liquidated damages shall be deemed to commence accruing on the day on
which the event triggering such liquidated damages occurs. The liquidated damages to be paid to the Holders pursuant to this Section 1.2(e) shall cease to accrue (i) with respect to the liquidated damages for failure to have the Shelf Registration
Statement declared effective on or prior to the ninetieth (90th) day after the Closing, on the day after the Holders
have received notice from the Company that the Shelf Registration Statement is declared effective, or (ii) with respect to the liquidated damages for the suspension of effectiveness of the Shelf Registration Statement, on the day after the Holders
have received notice from the Company regarding the reinstatement of effectiveness of the Shelf Registration Statement. The Company shall pay the liquidated damages due under this section at the end of each week during which such damages accrue and,
to the extent such liquidated damages are not paid when due, shall thereafter accrue interest at a rate equal to the U.S. prime rate plus the lesser of (i) 3.0% per annum and (ii) the maximum amount permitted by law. Liquidated damages shall be paid
to the Holders by wire transfer in immediately available funds to the accounts designated by the Holders. The parties hereto agree that the liquidated damages provided for in this Section 1.2(e) constitute a reasonable estimate of the damages that
will be suffered by the Holders by reason of the failure of the Shelf Registration Statement to be declared effective and/or to remain effective, as the case may be, in accordance with this Agreement. 
  
 1.3 Registration Procedures. 
  
 (a) Obligations of the Company. In connection with
its obligations under Section 1.2 with respect to the Shelf Registration Statement, the Company shall, as expeditiously as practicable: 
  
 (i) prepare and file with the Commission a Shelf Registration Statement as prescribed by Section 1.2(a) within the relevant time
period specified in Section 1.2(a) on Form S-1 (or any other appropriate form thereto), which form shall (A) be available for the sale of the Registrable Securities by the selling Holders thereof and (B) comply as to form in all material respects
with the requirements of the applicable form and include all financial statements required by the Commission to be filed therewith; the Company shall use its best efforts to cause such Shelf Registration Statement to become effective and remain
effective and the Prospectus usable for resales in accordance with Section 1.2, subject to the proviso contained in Section 1.2(b); provided, however, that, before filing any Shelf Registration Statement or Prospectus or any amendments
or supplements thereto, the Company shall furnish to and afford the Holders of the Registrable Securities covered by such Shelf Registration Statement, their counsel and the managing underwriters, if any, a reasonable opportunity to review copies of
all such documents (including copies of any documents to be incorporated by reference therein and all exhibits thereto) proposed to be filed; and the Company shall not file any Shelf Registration Statement or Prospectus or any amendments or
supplements thereto in respect of which 

  

 4 

 
the Holders must be afforded an opportunity to review prior to the filing of such document, other than filings required under the Exchange Act, if the
Holders, their counsel or the managing underwriters of an underwritten offering of Registrable Securities, if any, shall reasonably object in a timely manner; and provided further, however, the plan of distribution disclosed in the Shelf
Registration Statement shall be in the form attached hereto as Exhibit A, with such changes as the Holders may request; 
  
 (ii) prepare and file with the Commission such amendments and post-effective amendments to the Shelf Registration Statement as may be
necessary to keep the Shelf Registration Statement effective for the Effectiveness Period, subject to the proviso contained in Section 1.2(b) or as reasonably requested by the Holders of a majority of Registrable Securities, and cause each
Prospectus to be supplemented, if so determined by the Company or requested by the Commission, by any required prospectus supplement and as so supplemented to be filed pursuant to Rule 424 (or any similar provision then in force), under the
Securities Act, respond within a reasonable time to any comments received from the Commission with respect to the Shelf Registration Statement, or any amendment, post-effective amendment or supplement relating thereto, and comply with the provisions
of the Securities Act, the Exchange Act and the rules and regulations promulgated thereunder applicable to it with respect to the disposition of all Registrable Securities covered by the Shelf Registration Statement during the Effectiveness Period
in accordance with the intended method or methods of distribution by the selling Holders thereof described in this Agreement; provided, however, that any post-effective amendments to the Shelf Registration Statement to incorporate quarterly and
annual reports on Forms 10-Q and 10-K under the Exchange Act shall be filed simultaneously with the filing of such Forms 10-Q or 10-K, as applicable; 
  
 (iii) register or qualify the Registrable Securities under all applicable state securities or “blue sky” laws of such
jurisdictions by the time the applicable Shelf Registration. Statement is declared effective by the Commission as any Holder of Registrable Securities covered by the Shelf Registration Statement and each underwriter of an underwritten offering of
Registrable Securities shall reasonably request in writing in advance of such date of effectiveness, and do any and all other acts and things which may be reasonably necessary or advisable to enable such Holder and underwriter to consummate the
disposition in each such jurisdiction of such Registrable Securities owned by such Holder; provided, however, that the Company shall not be required to (A) qualify as a foreign corporation or as a dealer in securities in any
jurisdiction where it would not otherwise be required to qualify but for this Section 1.3(a)(iii), (B) file any general consent to service of process in any jurisdiction where it would not otherwise be subject to such service of process or (C)
subject itself to any material taxation in any such jurisdiction if it is not then so subject; 
  
 (iv) promptly (but in any event within three (3) business days) notify each Holder of Registrable Securities, its counsel and the managing
underwriters of an underwritten offering of Registrable Securities, if any, and promptly confirm such notice in writing (A) when the Shelf Registration Statement covering such Registrable Securities has become effective and when any post-effective
amendments thereto become effective, (B) of any request by the Commission or any state securities authority for amendments and supplements to such Shelf Registration Statement or Prospectus or for additional information after such Shelf Registration
Statement has become effective, (C) of the issuance or threatened issuance by the Commission or any state securities authority of any stop order suspending the effectiveness of such Shelf Registration Statement or the qualification of the
Registrable Securities in any jurisdiction described in Section 1.3(a)(iii) or the initiation of any proceedings for that purpose, (D) if, between the effective date of such Shelf Registration Statement and the closing of any sale of Registrable
Securities covered thereby, the representations and warranties of the Company contained in the Purchase Agreement cease to be true and correct, (E) of the happening of any event or the failure of any event to occur or the discovery of any facts,
during the Effectiveness Period, which makes any statement made in such Shelf Registration Statement or the related Prospectus untrue in any material respect or which causes such Shelf Registration Statement or Prospectus to omit to state a material
fact necessary in order to make the statements therein, in the light 

  

 5 

 
of the circumstances under which they were made, not misleading and (F) of the reasonable determination of the Company upon advice of its counsel that a
post-effective amendment to such Shelf Registration Statement would be appropriate; 
  
  
 (v) take best efforts to prevent the entry of any stop order suspending the effectiveness of any Shelf
Registration Statement, or if entered, to obtain the withdrawal of any such stop order or to avoid the issuance of, or, if issued, obtain the withdrawal of any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction at the earliest possible moment; 
  
 (vi) furnish to each Holder of Registrable Securities included within the coverage of a Shelf Registration Statement, without charge, a
number of conformed copies of the Shelf Registration Statement relating to such Shelf Registration and any post-effective amendment thereto (without documents incorporated therein by reference or exhibits thereto, unless requested) as such Holder or
managing underwriters, if any, may reasonably request; 
  
 (vii) deliver to each selling Holder of Registrable Securities and each managing underwriter participating in any such disposition of Registrable Securities, if any, without charge, as many copies of the applicable Prospectus (including
each preliminary Prospectus) as such Holder or managing underwriter may reasonably request (it being understood that the Company consents to the use of the Prospectus by each of the selling Holders of Registrable Securities and the underwriter or
underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by the Prospectus), such other documents incorporated by reference therein and any exhibits thereto as such selling Holder or managing underwriter
may reasonably request in order to facilitate the disposition of the Registrable Securities by such Holder or underwriter; 
  
 (viii) cooperate with the selling Holders of Registrable Securities to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive legends and registered in such names as the selling Holders or any underwriters may reasonably request at least two (2) Business Days prior to the closing of any sale of
Registrable Securities pursuant to the Shelf Registration Statement relating thereto; 
  
 (ix) as soon as practicable after the resolution of any matter or event specified in Sections 1.3(a)(iv)(B), 1.3(a)(iv)(C), 1.3(a)(iv)(E)
(subject to the proviso contained in Section 1.2(b)) and 1.3(a)(iv)(F)), prepare a supplement or post-effective amendment to the applicable Shelf Registration Statement or the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities, such Prospectus will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading; 
  
 (x) a reasonable time prior to the filing of any document which is to be incorporated by reference into a Shelf Registration Statement or
a Prospectus after the initial filing of such Shelf Registration Statement, provide a reasonable number of copies of such document to the Holders and managing underwriters, if any, and make such of the representatives of the Company as shall be
reasonably requested by the Holders of Registrable Securities available for discussion of such document; 
  
 (xi) if requested by the Holders of Registrable Securities in connection with a firm commitment underwritten offering of Registrable
Securities: (i) (A) enter into such agreements (including underwriting agreements) as are customary in underwritten offerings, (B) make such representations and warranties in such agreements to the underwriters (if any), with respect to the business
of the Company and its subsidiaries as then conducted and with respect to the applicable Shelf Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, as are customarily
made by issuers to underwriters in underwritten offerings (all of the representations and warranties by, and the other agreements on the part of, the Company to and 

  

 6 

 
for the benefit of such underwriters included in each such agreement shall also be made to and for the benefit of such Holders and any or all of the
conditions precedent to the obligations of such underwriters under. such agreements shall be conditions precedent to the obligations of such Holders), and confirm the same if and when requested and (C) include in such agreements such terms and
conditions as are generally prevailing in agreements of that type, including, without limitation, indemnities no less favorable to the recipient thereof than those provided in Section 1.4; (ii) obtain opinions of counsel to the Company and updates
thereof (which may be in the form of a reliance letter) in form and substance reasonably satisfactory to the managing underwriters covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may
be reasonably requested by such underwriters (it being agreed that the matters to be covered by such opinion may be subject to customary qualifications and exceptions); (iii) obtain “cold comfort” accountants’ letters and updates
thereof in form and substance reasonably satisfactory to the managing underwriters from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any business acquired by
the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement), addressed to each of the underwriters, such letters to be in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with underwritten offerings; and (iv) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures customary for such agreements;

  
 (xii) if requested by Holders of Registrable
Securities in connection with a firm underwritten commitment offering of Registrable Securities, make reasonably available for inspection by any selling Holder of Registrable Securities who certifies to the Company that it has a current intention to
sell Registrable Securities pursuant to the Shelf Registration, any underwriter participating in any such disposition of Registrable Securities, if any, and any attorney, accountant or other agent retained by any such selling Holder or underwriter
(collectively, the “Inspectors”), at the offices where normally kept, during the Company’s normal business hours, all financial and other records, and pertinent organizational and operational documents of the
Company and its subsidiaries (collectively, the “Records”) as shall be reasonably necessary to enable them to exercise any applicable due diligence responsibilities, and cause the officers, trustees and employees of
the Company and its subsidiaries to supply all relevant information in each case reasonably requested by any such Inspector in connection with such Shelf Registration Statement, Records and information which the Company, in good faith, determines to
be confidential and any Records and information which it notifies the Inspectors are confidential shall not be disclosed to any Inspector except where (A) the disclosure of such Records or information is necessary to avoid or correct a material
misstatement or omission in the applicable Shelf Registration Statement, (B) the release of such Records or information is ordered pursuant to a subpoena or other order from a court of competent jurisdiction or is necessary in connection with any
action, suit or proceeding, (C) such Records or information previously have been made generally available to the public or (D) such Inspector agrees with the Company in writing to keep such Records or information confidential; each selling Holder of
such Registrable Securities will be required to agree in writing that Records and information obtained by it as a result of such inspections shall be deemed confidential and shall not be used by it as the basis for any market transactions in the
securities of the Company unless and until such is made generally available to the public through no fault of an Inspector or a selling Holder; and each selling Holder of such Registrable Securities will be required to further agree in writing that
it will, upon learning that disclosure of such Records or information is sought in a court of competent jurisdiction, or in connection with any action, suit or proceeding, give notice to the Company and allow the Company at its expense to undertake
appropriate action to prevent disclosure of the Records and information deemed confidential; 
  
 (xiii) comply with all applicable rules and regulations of the Commission so long as any provision of this Agreement shall be applicable
and make generally available to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than forty-five (45)
days 

  

 7 

 
after the end of any twelve-month period (or ninety (90) days after the end of any twelve-month period if such period is a fiscal year) or, in each case,
such shorter period as may be required for the filing of reports containing quarterly and annual financial statements pursuant to the rules and regulations adopted under the Securities Act from time to time (A) commencing at the end of any fiscal
quarter in which Registrable Securities are sold to underwriters in a firm commitment or best efforts underwritten offering, and (B) if not sold to underwriters in such an offering, commencing on the first day of the first fiscal quarter of the
Company after the effective date of a Shelf Registration Statement, which statements shall cover said twelve-month periods, provided that the obligations under this Section 1.3(a)(xiii) shall be satisfied by the timely filing of quarterly and annual
reports on Forms 10-Q and 10-K under the Exchange Act; 
  
 (xiv) cooperate with each seller of Registrable Securities covered by a Shelf Registration Statement and each underwriter, if any, participating in the disposition of such Registrable Securities and their respective counsel in connection
with any filings required to be made with the NASD; 
  
 (xv) take all other steps necessary to effect the registration of the Registrable Securities covered by a Shelf Registration Statement contemplated hereby; and 
  
 (xvi) notwithstanding any other provision of this Section 1.3, if the Company becomes ineligible to use the
registration form on which the Shelf Registration Statement is filed and declared effective pursuant to Section 1.2(a), thereby precluding any Holder from using the related Prospectus, the Company shall use reasonable best efforts to prepare and
file either a post effective amendment to the Shelf Registration Statement to convert such registration statement to, or a new Shelf Registration Statement on, another registration form which the Company is eligible to use within thirty (30) days
after the date that the Company becomes ineligible, provided such other registration form shall be available for the sale of the Registrable Securities by the selling Holders thereof and such amended or new Shelf Registration Statement shall remain
subject in all respects to the provisions of this Section 1.3. 
  
 (b) Holders’ Obligations. 
  
 (i) Each Holder agrees that, upon receipt of any notice from the Company of the occurrence of any event specified in Sections 1.3(a)(iv)(B), 1.3(a)(iv)(C), 1.3(a)(iv)(E), 1.3(a)(iv)(F) or any Delay Notice, such Holder
will forthwith discontinue disposition of Registrable Securities pursuant to the Shelf Registration Statement at issue until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 1.3(a)(ix) or
until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, if so directed by the Company, such Holder will deliver to the Company (at the Company’s
expense) all copies in such Holder’s possession, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable Securities current at the time of receipt of such notice. 
  
 (ii) Each Holder agrees that the Company may require each
seller of Registrable Securities as to which any registration is being effected to furnish to it such information regarding such seller as may be required by the staff of the Commission to be included in the applicable Shelf Registration Statement,
the Company may exclude from such registration the Registrable Securities of any seller who fails to furnish such information which is not otherwise readily available to the Company within ten (10) Business Days after receiving such request, and the
Company shall have no obligation to register under the Securities Act the Registrable Securities of a seller who so fails to furnish such information. 
  
 1.4 Indemnification. In the event any Registrable Securities are included in a Shelf Registration Statement under this Section 1:

  
 (a) To the fullest extent permitted by law,
the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Securities Act) for such Holder and each Person, if any, who controls a Holder or underwriter within the meaning of the Securities Act or the Exchange Act
and each officer, 

  

 8 

 
director, agent, affiliate and employee of each Holder, underwriter and controlling Person, against any losses, claims, damages or liabilities (joint or
several) to which they may become subject under the Securities Act, the Exchange Act or other federal, state or provincial law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any
of the following (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such Shelf Registration Statement, including any preliminary Prospectus or final Prospectus
contained therein, any document incorporated by reference in such Shelf Registration Statement or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation. promulgated under the Securities Act, the
Exchange Act or any state or provincial securities law directly related to, or in connection with, the Shelf Registration Statement or the related offering; and the Company will pay to a Holder, underwriter or controlling Person or officer,
director, agent, affiliate or employee of a Holder, underwriter or controlling Person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this Section 1.4(a) does not apply to (x) amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the
consent of the Company, which consent may not be unreasonably withheld, conditioned or delayed; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made in a Shelf Registration Statement or final Prospectus or any amendment or supplement thereto or any related preliminary Prospectus, in
reliance upon and in conformity with written information furnished to the Company by the Holder specifically for inclusion therein or (y) any untrue statement or alleged untrue statement of material fact or omission or alleged omission to state
therein a material fact in any preliminary Prospectus, if a copy of the final Prospectus in which such untrue statement or alleged untrue statement or omission or alleged omission was corrected was required to be sent or given but had not been sent
or given to such person prior to the settlement of the sale, so long as the final Prospectus and any amendments or supplements thereto were provided by the Company to the Indemnified Holder in the requisite quantity and on a timely basis to permit
proper delivery on or prior to the settlement of the sale. The Company shall notify the Holders promptly of the institution, threat or assertion of any action, claim, suit, investigation or proceeding of which the Company is aware in connection with
the transactions contemplated by this Agreement. 
  
 (b) To the fullest extent permitted by law, each Holder, severally and not jointly, will indemnify and hold harmless the Company, each of its directors, officers, employees and Affiliates, each Person, if any, who controls the Company
within the meaning of the Securities Act, any underwriter, any other stockholder selling securities in such Shelf Registration Statement and any controlling Person of any such underwriter or other stockholder, against any losses, claims, damages or
liabilities (joint or several) to which any of the foregoing Persons may become subject, under the Securities Act, the Exchange Act or other federal, state or provincial law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereto) arise out of or are based upon any Violation, in each case to the extent that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in such Shelf Registration
Statement, including any preliminary Prospectus or final Prospectus contained therein or any amendments or supplements thereto; and such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any Person intended to be
indemnified pursuant to this Section 1.4(b), in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 1.4(b) does not
apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of such Holder, which consent may not be unreasonably withheld, conditioned or delayed; and further
provided, that, in no event will any indemnity under this Section 1.4(b) exceed the net proceeds received by such Holder from the sale of Registrable Securities giving rise to such indemnification obligation. 
  
  

 9 

 (c) Promptly after receipt by an indemnified party under this Section 1.4 of notice of
the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.4, deliver to the indemnifying party a written notice of
the commencement thereof and the indemnifying party will have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof, including
the employment of counsel reasonably satisfactory to the indemnified party, if (i) the indemnifying party acknowledges its obligation to indemnify the indemnified party for any losses, damages or liabilities resulting from such claim and provide
reasonable evidence to the indemnified party of its financial ability to satisfy such obligation; (ii) the claim does not seek to impose any liability or obligation on the indemnified party other than for money damages; and (iii) the claim does not
relate to the indemnified party’s relationship with its customers or employees. An indemnified party shall have the right to employ separate counsel in any such action, claim, suit, investigation or proceeding and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless: (1) the indemnifying party has agreed in writing to pay such fees and expenses; (2) the indemnifying party shall have failed
promptly to assume the defense of such action, claim, suit, investigation or proceeding and to employ counsel reasonably satisfactory to such indemnified party in any such action, claim, suit, investigation or proceeding; (3) the indemnifying party
is not entitled to assume and control the defense of any such action, claim, suit, investigation or proceeding pursuant to clauses (ii) or (iii) of the immediately preceding sentence; or (4) such indemnified party shall have been advised by counsel
that a conflict of interest is likely to exist if the same counsel were to represent such indemnified party and the indemnifying party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ
separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense thereof and the reasonable fees and expenses of one separate counsel for all indemnified parties shall be at the expense
of the indemnifying party).The indemnifying party will not be liable for any settlement of any action, claim, suit, investigation or proceeding effected without its consent, which consent may not be unreasonably withheld, conditioned or delayed. No
indemnifying party shall, without the prior written consent of the indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to
such indemnified party of an unconditional release from all liability in respect of such claim or litigation. The failure by the indemnified party to deliver written notice to the indemnifying party within a reasonable time of the commencement of
any such action shall not relieve such indemnifying party of any obligation or liability to the indemnified party under this Section 1.4, except (and only) to the extent that such failure shall have prejudiced the indemnifying party. 
  
 (d) If the indemnification provided for in this Section 1.4
is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, will contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided, that, in no
event will any contribution by a Holder under this Section 1.4(d) exceed the net proceeds received by a Holder from the sale of Registrable Securities giving rise to such indemnification obligation. The relative fault of the indemnifying party and
of the indemnified party will be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or
by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 1.4(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding sentence. No Person guilty of
fraudulent misrepresentation (within the meaning of 

  

 10 

 
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The amount
paid or payable by a party as a result of any loss, liability, claim, damage or expense shall be deemed to include, subject to the limitations set forth in Section 1.4(c), any reasonable attorneys’ or other reasonable fees or expenses incurred
by such party in connection with any action, claim, suit, investigation or proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in
accordance with its terms. 
  
 (e) The
obligations of the Company and Holders under this Section 1.4 will survive the completion of any offering of Registrable Securities in the Shelf Registration Statement under this Section 1 and otherwise. 
  
 1.5 Reports Under the Exchange Act. 
  
 (a) The Company shall file as and when applicable, on a
timely basis, all reports required to be filed by it under the Exchange Act. If the Company is not required to file reports pursuant to the Exchange Act, upon the request of any Holder of Registrable Securities, the Company shall make publicly
available the information specified in subparagraph (c)(2) of Rule 144. The Company shall take such further action as may be reasonably required from time to time and as may be within the reasonable control of the Company, to enable the Holders to
Transfer Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 or any other exemption from registration. Upon the request of any Holder of Registrable Securities, the
Company will deliver to such Holder a written statement as to whether it has complied with such requirements and, if not, the specifics thereof. 
  
 (b) In connection with any sale, transfer or other disposition by a Holder of any Registrable Securities pursuant to Rule 144, the Company
shall cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any Securities Act legend, and enable certificates for such Registrable Securities to
be for such number of shares and registered in such names as the Holder may reasonably request at least two (2) business days prior to any sale of Registrable Securities. 
  
 (c) So long as the Shelf Registration Statement is effective covering the resale of Registrable Securities
owned by a Holder, the Company will furnish to such Holder: (i) as soon as practicable after it is available, one copy of (1) its Annual Report to Stockholders (which Annual Report shall contain financial statements audited in accordance with
generally accepted accounting principles by a national firm of certified public accountants), (2) its Annual Report on Form 10-K and (3) its Quarterly Reports on Form 10-Q (the foregoing, in each case, excluding exhibits); and (ii) upon the request
of the Holder, all exhibits excluded by the parenthetical to clause (i) of this Section 1.5(c) as filed with the SEC and all other information that is made available to shareholders. 
  
 1.6 Registration Expenses. The Company shall bear and pay all expenses incurred in connection with any registration,
filing, or qualification of Registrable Securities with respect to a Shelf Registration Statement for each selling Holder, including all registration, exchange listing, accounting, filing and NASD fees, all fees and expenses of complying with
securities or blue sky laws, all word processing, duplicating and printing expenses, messenger and delivery expenses, the reasonable fees and disbursements of counsel for the Company, and of the Company’s independent public accountants,
including the expenses of “comfort letters” required by or incident to such performance and compliance and reasonable fees and disbursements of one firm of counsel and one firm of accountants for the Holders. Holders shall be responsible
for any underwriting discounts and commissions and taxes of any kind (including without limitation, transfer taxes) relating to any disposition, sale or transfer of Registrable Securities. 
  
 1.7 Piggy-Back Registrations; Other Registrations. Subject to
the terms of the Company’s existing registration rights agreements in effect prior to the date hereof, if at any time during the Effectiveness Period there is not an effective Shelf Registration Statement covering all of the Registrable
Securities and the Company 

  

 11 

 
shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under
the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of
any entity or business or equity securities issuable in connection with the stock option or other employee benefit plans, then the Company shall send to each Holder a written notice of such determination and, if within fifteen days after the date of
such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered, subject to customary underwriter cutbacks
applicable to all holders of registration rights. The Company agrees that it will not grant to any person any registration rights that are senior to the rights granted in Section 1 of this Agreement. In no event at any time before the Shelf
Registration Statement becomes effective with respect to the Shares shall the Company publicly announce or file any other, registration statement, other than registrations on Form S-8 without the consent of the Holders of a majority of the
Registrable Securities. 
  
 1.8 Future Offerings. If the
Company proposes to effect any private offering of its Common Stock or other securities convertible into or exercisable or exchangeable for shares of its Common Stock (other than (i) shares of Common Stock and stock options issued pursuant to the
Company’s 2003 Management Equity Incentive Plan, (ii) shares of Common Stock issued pursuant to warrants outstanding pursuant to a Secured Lender Warrant Agreement, dated as of December 12, 2003, (iii) shares of Common Stock issued pursuant to
warrants outstanding pursuant to a Senior Discount Warrant Agreement, dated as of December 12, 2003, (iv) shares of Common Stock issuable upon conversion of a promissory note issued to Houlihan Lokey Howard & Zukin, and (v) shares of Common
Stock and options issued pursuant to the Company’s 2003 Directors Equity Incentive Plan) prior to the first anniversary of the date of this Agreement, the Company shall notify each Holder in writing of such offering at least five business days
prior to the consummation thereof and the Holders will be permitted to participate in such offering on the same terms and conditions applicable to the other investors participating in the offering. If the number of shares subscribed for by the
Holders and the other investors participating in such offering exceeds the number of shares the Company proposes to sell in the offering, the shares will be prorated among the Holders and such other investors on the basis of the number of shares
subscribed for by each party. 
  
 1.9 Assignment of Rights.

  
 (a) Except as expressly provided in this
Section 1.9, the rights of the parties hereto cannot be assigned and any purported assignment or transfer to the contrary shall be void ab initio. So long as the terms of this Section 1.9 are followed, any Holder may assign any of its rights under
this Agreement, without the consent of the Company, to any Person, including, without limitation, an Affiliate of such Holder, to whom such Holder Transfers any Registrable Securities or any rights to acquire Registrable Securities so long as such
Transfer is not made pursuant to an effective Registration Statement or pursuant to Rule 144 or Rule 145 (or any successor provisions) or in any other manner the effect of which is to cause the Transferred securities to be freely transferable
without regard to the volume and manner of sale limitations set forth in Rule 144 (or any successor provision) in the hands of the transferee as of the date of such Transfer. 
  
 (b) The nature and extent of any rights assigned shall be as agreed to between the assigning party and the
assignee. No Person may be assigned any rights under this Agreement unless (i) the Company is given written notice by the assigning party at the time of such assignment stating the name and address of the assignee and identifying the securities of
the Company as to which the rights in question are being assigned, (ii) such assignment is exempt from the registration requirements of the Securities Act, and (iii) and the assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement, including, without limitation, the provisions of this Section 1.9. 
  
 2. Miscellaneous Provisions. 
  
 2.1 Waivers and Amendments. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or 

  

 12 

 
prospectively), only with the written consent of the Company and each Holder of then outstanding Registrable Securities. Any amendment or waiver effected in
accordance with this Section 2.1 is binding upon Holders and the Company. 
  
 2.2 Notices. All notices and other communications required or permitted hereunder must be in writing and, except as otherwise noted herein, must be addressed as follows: 
  
 (a) if to the Company, to: 
  
 DDi Corp. 
 1220 Simon Circle 
 Anaheim, CA 92806 
 Attention: Timothy J. Donnelly, Esq., Vice President & General Counsel 
 Facsimile: (714) 688-7619 
  
 with a copy to: 
  
 Paul, Hastings, Janofsky & Walker LLP 
 695 Town Center Drive, 17th Floor 
 Costa Mesa, CA 62626 
 Attention: John Della Grotta 
 Fax: (714) 979-1921 
  
 (b) if to any Holder, at the address shown on such Holders signature page hereto, marked for attention as there indicated, to: 
  
 or to such other address as the party to whom notice is to be given may have furnished to the other in writing in accordance with the provisions of this Section 2.2. Any
such notice or communication will be deemed to have been received: (i) in the case of telecopy or personal delivery, on the date of such delivery; (ii) in the case of nationally-recognized overnight courier, on the next business day after the date
sent; and (iii) if by registered or certified mail, on the third business day following the date postmarked. 
  
 2.3 Merger, Consolidations and Sale of Assets. The Company shall not, directly or indirectly, (a) enter into any merger, consolidation or
reorganization in which the Company shall not be the surviving corporation or (b) sell, assign, license or otherwise transfer or agree to sell, assign, license or otherwise transfer all or substantially all the Company’s assets, unless prior to
such merger, consolidation, reorganization or asset transfer, the surviving corporation or the transferee, respectively, shall have agreed in writing to assume the obligations of the Company under this Agreement, and for the purpose references
hereunder to “Registrable Securities” shall be deemed to include the securities which the Holders of Registrable Securities would be entitled to receive in exchange for Registrable Securities pursuant to any such merger, consolidation or
reorganization. 
  
 2.4 Descriptive Headings and
References. The descriptive headings herein have been inserted for convenience only and are not deemed to limit or otherwise affect the construction of any provisions hereof Except as otherwise specifically provided, any reference to any section
will be deemed to refer to such section of this Agreement. 
  
 2.5
GOVERNING LAW. THE CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW
PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE. 
  
 2.6 Counterparts. This Agreement may be executed in one or more counterparts, each of which is for all purposes
deemed to be an original and all of which constitute the same instrument, but only one of which need be produced. 
  

 13 

 2.7 Equitable Remedies. The Company recognizes and agrees that each holder of Registrable
Securities will not have an adequate remedy if the Company fails to comply with the terms and provisions of this Agreement and that damages will not be readily ascertainable, and the Company expressly agrees that, in the event of such failure, it
shall not oppose an application by any holder of Registrable Securities or any other Person entitled to the benefits of this Agreement requiring specific performance of any and all provisions hereof or enjoining the Company from continuing to commit
any such breach of this Agreement. 
  
 2.8 Successors and
Assigns. Except as otherwise expressly provided in this Agreement, this Agreement shall benefit and bind the successors, assigns, heirs, executors and administrators of the parties to this Agreement. 
  
 2.9 Entire Agreement. This Agreement, together with the Purchase
Agreement, constitutes the full and entire understanding and agreement between the parties with regard to the subject matter of this Agreement. 
  
 2.10 Separability; Severability. Unless expressly provided in this Agreement, the rights of each Holder under this Agreement are several rights,
not rights jointly held with any other Holders. Any invalidity, illegality or limitation on the enforceability of this Agreement with respect to any Holder does not affect the validity, legality or enforceability of this Agreement with respect to
..the other Holders. If any provision of this Agreement is judicially determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not be affected or impaired. 
  
 2.11 Limitation of Liability. A copy of the Agreement and Declaration
of Trust of each Holder is on file with the Secretary of State of the Commonwealth of Massachusetts and notice is hereby given that this Agreement is executed on behalf of the Trustees of each Holder as Trustees and not individually and that the
obligations of this Agreement are not binding upon any of the Trustees, officers or stockholders of the Holder individually but are binding only upon the assets and property of such Holder. The Company is expressly put on notice that the rights and
obligations of each series of shares of each Holder under its Declaration of Trust are separate and distinct from those of any and all other series. 
  
 2.12 Publicity. The Company agrees that it will not use in advertising or publicity the names of the Holders, Fidelity Management & Research
Company, any of its partners or employees, any of the funds or accounts managed by it or any of its affiliates, or any trade name, trademark, trade device, service mark, symbol or any abbreviation, contraction or simulation thereof, in any case
without the prior written consent of Fidelity Management & Research Company. 
  
 [signature pages follow] 
  

 14 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement on the day and year
first set forth above. 
  

			
	DDi Corp.
		
	By:	 	/s/    TIMOTHY J. DONNELLY        
	 	 	

	 	 	 Name:  Timothy J. Donnelly

	 	 	 Title:    Vice President

  

			
	FIDELITY ADVISOR SERIES I:
	FIDELITY ADVISOR LEVERAGED
	COMPANY STOCK FUND
		
	By:	 	/s/    TIMOTHY J. DONNELLY         
	 	 	

	 	 	 Name:  Timothy J. Donnelly

	 	 	 Title:    Vice President

  

			
	FIDELITY SECURITIES FUND:
	FIDELITY LEVERAGED COMPANY
	STOCK FUND
		
	By:	 	/s/    JOHN N. COSTELLO         
	 	 	

	 	 	 Name:  John N. Costello

	 	 	 Title:    Assistant Treasurer

  

			
	Address for Holders:
	82 Devonshire Street
	Boston, MA 02109-3617
	Attn: Nathan Van Duzer
	Facsimile: (617) 476-7774
	
	With a copy to:
	Goodwin Procter LLP
	53 State Street
	Boston, MA 02109
	Attn: H. David Henken, P.C.
	Facsimile: (617) 523-1231

  
  

 15 

 Exhibit A 
  
 Plan of Distribution 
  
 The selling securityholders, or their pledgees, donees, transferees, or any of their successors in interest selling shares received from a named selling securityholder as
a gift, partnership distribution or other non-sale-related transfer after the date of this prospectus (all of whom may be selling securityholders), may sell the securities from time to time on any stock exchange or automated interdealer quotation
system on which the securities are listed, in the over-the-counter market, in privately negotiated transactions or otherwise, at fixed prices that may be changed, at market prices prevailing at the time of sale, at prices related to prevailing
market prices or at prices otherwise negotiated. The selling securityholders may sell the securities by one or more of the following methods, without limitation: 
  
 (a) block trades in which the broker or dealer so engaged will attempt to sell the securities as agent but
may position and resell a portion of the block as principal to facilitate the transaction; 
  
 (b) purchases by a broker or dealer as principal and resale by the broker or dealer for its own account pursuant to this prospectus;

  
 (c) an exchange distribution in accordance
with the rules of any stock exchange on which the securities are listed; 
  
 (d) ordinary brokerage transactions and transactions in which the broker solicits purchases; 
  
 (e) privately negotiated transactions; 
  
 (f) short sales; 
  
 (g) through the writing of options on the securities, whether or not the options are listed on an options exchange; 
  
 (h) through the distribution of the securities by any
selling securityholder to its partners, members or stockholders; 
  
 (i) one or more underwritten offerings on a firm commitment or best efforts basis; and 
  
 (j) any combination of any of these methods of sale. 
  
 The selling securityholders may also transfer the securities by gift. We do not know of any arrangements by the selling
securityholders for the sale of any of the securities. 
  
 The
selling securityholders may engage brokers and dealers, and any brokers or dealers may arrange for other brokers or dealers to participate in effecting sales of the securities. These brokers, dealers or underwriters may act as principals, or as an
agent of a selling securityholder. Broker-dealers may agree with a selling securityholder to sell a specified number of the securities at a stipulated price per security. If the broker-dealer is unable to sell securities acting as agent for a
selling securityholder, it may purchase as principal any unsold securities at the stipulated price. Broker-dealers who acquire securities as principals may thereafter resell the securities from time to time in transactions in any stock exchange or
automated interdealer quotation system on which the securities are then listed, at prices and on terms then prevailing at the time of sale, at prices related to the then-current market price or in negotiated transactions. Broker-dealers may use
block transactions and sales to and through broker-dealers, including transactions of the nature described above. The selling securityholders may also sell the securities in accordance with Rule 144 under the Securities Act of 1933, as amended,
rather than pursuant to this prospectus, regardless of whether the securities are covered by this prospectus. 
  
 From time to time, one or more of the selling securityholders may pledge, hypothecate or grant a security interest in some or all of the securities owned
by them. The pledgees, secured parties or persons to whom the 

  

 16 

 
securities have been hypothecated will, upon foreclosure in the event of default, be deemed to be selling securityholders. As and when a selling
securityholder takes such actions, the number of securities offered under this prospectus on behalf of such selling securityholder will decrease. The plan of distribution for that selling securityholder’s securities will otherwise remain
unchanged. In addition, a selling securityholder may, from time to time, sell the securities short, and, in those instances, this prospectus may be delivered in connection with the short sales and the securities offered under this prospectus may be
used to cover short sales. 
  
 To the extent required under the
Securities Act of 1933, the aggregate amount of selling securityholders’ securities being offered and the terms of the offering, the names of any agents, brokers, dealers or underwriters and any applicable commission with respect to a
particular offer will be set forth in an accompanying prospectus supplement. Any underwriters, dealers, brokers or agents participating in the distribution of the securities may receive compensation in the form of underwriting discounts,
concessions, commissions or fees from a selling securityholder and/or purchasers of selling securityholders’ securities of securities, for whom they may act (which compensation as to a particular broker-dealer might be in excess of customary
commissions). 
  
 The selling securityholders and any
underwriters, brokers, dealers or agents that participate in the distribution of the securities may be deemed to be “underwriters” within the meaning of the Securities Act of 1933, and any discounts, concessions, commissions or fees
received by them and any profit on the resale of the securities sold by them may be deemed to be underwriting discounts and commissions. 
  
 A selling securityholder may enter into hedging transactions with broker-dealers and the broker-dealers may engage in short sales of the securities in the
course of hedging the positions they assume with that selling securityholder, including, without limitation, in connection with distributions of the securities by those broker-dealers. A selling securityholder may enter into option or other
transactions with broker-dealers that involve the delivery of the securities offered hereby to the broker-dealers, who may then resell or otherwise transfer those securities. A selling securityholder may also loan or pledge the securities offered
hereby to a broker-dealer and the broker-dealer may sell the securities offered hereby so loaned or upon a default may sell or otherwise transfer the pledged securities offered hereby. 
  
 The selling securityholders and other persons participating in the sale or distribution of the securities will be subject to
applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including Regulation M. This regulation may limit the timing of purchases and sales of any of the securities by the selling
securityholders and any other person. The anti-manipulation rules under the Securities Exchange Act of 1934 may apply to sales of securities in the market and to the activities of the selling securityholders and their affiliates. Furthermore,
Regulation M may restrict the ability of any person engaged in the distribution of the securities to engage in market-making activities with respect to the particular securities being distributed for a period of up to five business days before the
distribution. These restrictions may affect the marketability of the securities and the ability of any person or entity to engage in market-making activities with respect to the securities. 
  
 We have agreed to indemnify in certain circumstances the selling
securityholders and any brokers, dealers and agents who may be deemed to be underwriters, if any, of the securities covered by the registration statement, against certain liabilities, including liabilities under the Securities Act of 1933. The
selling securityholders have agreed to indemnify us in certain circumstances against certain liabilities, including liabilities under the Securities Act of 1933, as amended. 
  
 The securities offered hereby were originally issued to the selling securityholders pursuant to an exemption from the
registration requirements of the Securities Act of 1933, as amended. We agreed to register the securities under the Securities Act of 1933, and to keep the registration statement of which this prospectus is a part effective until the date on which
the selling securityholders have sold all of the securities. We have agreed to pay all expenses in connection with this offering, including the fees and expenses of counsel or other advisors to the selling securityholders, but not including
underwriting discounts, concessions, commissions or fees of the selling securityholders. 
  

 17 

 We will not receive any proceeds from sales of any securities by the selling securityholders. 

 
 We cannot assure you that the selling securityholders will sell all or any
portion of the securities offered hereby. 
  

 18

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