Document:

exv10w1

 

Exhibit 10.1

FORM OF AGREEMENT

     AGREEMENT by and between Canyon Resources Corporation, a Delaware corporation (the “Company”)
and                      (the “Executive”), dated as of the                      day of                      20___.

     The Board of Directors of the Company (the “Board”), has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will have the continued
dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of
Control (as defined below) of the Company. The Board believes it is imperative to diminish the
inevitable distraction of the Executive by virtue of the personal uncertainties and risks created
by a pending or threatened Change of Control, and to provide the Executive with compensation and
benefits arrangements upon a Change of Control which ensure that the compensation and benefits
expectations of the Executive will be satisfied and which are competitive with those of other
corporations. Therefore, in order to accomplish these objectives and to adequately reward
Executive, the Board has caused the Company to enter into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Certain Definitions. The “Effective Date” shall be the first date upon which a
“Change of Control” (as defined in Section 2) occurs.

     2. Change of Control. For the purpose of this Agreement, a “Change of Control” shall
mean:

          (a) The acquisition, whether by purchase, share exchange, merger, amalgamation, etc., or other
property exchange, by any individual, entity or group within the meaning of Section 13(d)(3) or
14(D)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) of beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of 30% or more of either (i)
the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”)
or (ii) the combined voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Company Voting Securities”), provided,
however, that any acquisition by the Company or any of its subsidiaries, or any employee
benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries,
shall not constitute a Change of Control; or

          (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board, provided that any individual
becoming a director subsequent to the date hereof whose election or nomination for election by the
Company’s shareholders, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of
office is in connection with an actual or threatened election contest relating to the election of
the Directors of the Company (as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the Exchange Act); or

          

 

 

          (c) (i) a complete liquidation or dissolution of the Company or (ii) sale or other
disposition of all or substantially all of the assets of the Company other than to an Affiliated
Company. As used herein, Affiliated Company means any company controlled by, controlling or under
common control with the Company.

     3. Employment Period. Prior to the Effective Date, this Agreement shall be binding
upon both parties, but shall not be effective, and Executive and the Company shall not have any
obligations to the other hereunder. After the Effective Date, the Company hereby agrees to continue
the Executive in its employ, and the Executive hereby agrees to remain in the employ of the
Company, for a period of twelve (12) months commencing on the Effective Date during the first two
years of employment and eighteen (18) months thereafter (the “Employment Period”).

     4. Terms of Employment.

          (a) Position and Duties.

               (i) During the Employment Period, the Executive’s position, authority, duties and
responsibilities shall be at least commensurate in all material respects with the most significant
of those held, exercised and assigned at any time during the 90-day period immediately preceding
the Effective Date.

               (ii) During the Employment Period, but excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.

          (b) Compensation.

               (i) Base Salary. During the Employment Period, the Executive shall receive an annual
base salary (“Annual Base Salary”) (which shall be paid in equal bi-monthly installments) at least
equal to twelve times the highest monthly base salary paid or payable to the Executive by the
Company and its affiliated companies in respect of the twelve-month period immediately preceding
the month in which the Effective Date occurs. As used in this Agreement, the term “Affiliated
Compan(ies)” includes any company controlled by, controlling or under common control with the
Company.

               (ii) Incentive, Stock Option, Savings and Retirement Plans. In addition to Annual
Base Salary payable as hereinabove provided, the Executive shall be entitled to participate during
the Employment Period in all incentive stock option, savings and retirement plans, practices,
policies and programs applicable generally to any other Executives of the Company and its
Affiliated Companies.

 

 

               (iii) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible for participation in and shall receive
all benefits under welfare benefit plans, practices, policies and programs provided by the Company
and its Affiliated Companies (including, without limitation, medical, prescription, dental,
disability, salary continuance, employee life, group life, accidental death and travel accident
insurance plans and programs) to the extent generally applicable to any other Executives of the
Company and its Affiliated Companies.

               (iv) Expenses. During the Employment Period, the Executive shall be entitled to
receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance
with the policies, practices and procedures of the Company and its Affiliated Companies in effect
for the Executives at any time during the 90-day period immediately preceding the Effective Date.

               (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to
fringe benefits in accordance with the plans, practices, programs and policies of the Company and
its Affiliated Companies in effect for the Executive at any time during the 90-day period
immediately preceding the Effective Date.

               (vi) Vacation. During the Employment Period, the Executive shall be entitled to paid
vacation in accordance with the most favorable plans, policies, programs and practices of the
Company and its Affiliated Companies as in effect at any time during the 90-day period immediately
preceding the Effective Date.

     5. Termination of Employment.

          (a) Death or Disability. The Executive’s employment hereunder and the Employment
Period shall terminate automatically upon the Executive’s death during the Employment Period. If
the Company’s Board determines in good faith that the Disability of the Executive has occurred
during the Employment Period (pursuant to the definition of Disability set forth below), it may
give to the Executive written notice in accordance with Section 11(b) of this Agreement of its
intention to terminate the Executive’s employment. In such event, the Executive’s employment with
the Company and the Employment Period shall terminate effective on the 30th day after
receipt of such notice by the Executive (the “Disability Effective Date”), if, within the 30 days
after such receipt, the Executive shall not have returned to full-time performance of the
Executive’s duties. For purposes of this Agreement, “Disability” means the absence of the Executive
from the Executive’s duties with the Company on a full-time basis for 180 consecutive business days
as a result of incapacity due to mental or physical illness which is determined to be total and
permanent by a physician selected by the Company or its insurers and acceptable to the Executive or
the Executive’s legal representative (such agreement as to acceptability not to be withheld
unreasonably).

          (b) Cause. The Company may terminate the Executive’s employment and the Employment
Period during the Employment Period for Cause. For purposes of this Agreement, “Cause” means (i) an
action taken by the Executive involving willful and wanton misconduct or gross negligence, or (ii)
the Executive being convicted of a felony or other crime
which the Board reasonably determines would have an adverse impact on Executive’s ability to
perform his duties.

 

 

          (c) Good Reason. The Executive’s employment and the Employment Period may be
terminated during the Employment Period by the Executive for Good Reason. For purposes of this
Agreement, “Good Reason” means:

               (i) the assignment to the Executive of any duties inconsistent in any respect with the
Executive’s position, authority, duties or responsibilities as contemplated by Section 4(a) of this
Agreement, or any other action by the Company which results in a significant diminution in such
position, authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive;

               (ii) any failure by the Company to comply with any of the provisions of Section 4(b) of this
Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the
Executive;

               (iii) the Company’s requiring the Executive to be based at any office or location which is
outside a 20-mile radius of the Company’s principal office immediately prior to the Effective Date;

               (iv) any purported termination by the Company of the Executive’s employment otherwise than as
expressly permitted by this Agreement; or

               (v) any failure by the Company to comply with and satisfy Section 10(c) of this Agreement.

     For purposes of this Agreement, any dispute concerning the determination of Good Reason shall
be determined by arbitration according to the provisions of the Colorado Uniform Arbitration Act
(C.R.S. § 13-22-201 et seq.)

          (d) Notice of Termination. Any termination by the Company for Cause or by the
Executive for Good Reason shall be communicated by Notice of Termination to the other party hereto
given in accordance with Section 11(b) of this Agreement. For purposes of this Agreement, a “Notice
of Termination” means a written notice which (i) indicates the specific termination provision in
this Agreement relied upon, (ii) to the extent applicable sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and (iii) if the Date of Termination (as defined below) is other than
the date of receipt of such notice, specifies the termination date (which date shall be not more
than fifteen days after the giving of such notice). In the case of a termination of the Executive’s
employment for Cause, a Notice of Termination shall include a copy of a resolution duly adopted by
the affirmative vote of not less than a majority of the entire membership of the Board at a meeting
of the Board called and held for the purpose (after reasonable notice to the Executive and
reasonable opportunity for the Executive, to be heard

 

 

before the Board prior to such vote), finding that in the good faith opinion of the Board the
Executive should be terminated for Cause. No purported termination of the Executive’s employment
for Cause shall be effective without a Notice of Termination. The failure by the Executive to set
forth n the Notice of Termination any fact or circumstance which contributes to a showing of Good
Reason shall not waive any right of the Executive hereunder or preclude the Executive from
asserting such fact or circumstance in enforcing the Executive’s rights hereunder. A Notice of
Termination may be given at any time during the Employment Period.

          (e) Date of Termination. “Date of Termination” means the date of receipt of the
Notice of Termination or any later date specified therein, as the case may be; provided, however,
that (i) if the Executive’s employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be the date on which the Company notifies the Executive
of such termination and (ii) if the Executive’s employment is terminated by reason of death or
Disability, the Date of Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

     6. Obligations of the Company upon Termination.

          (a) Death. If the Executive’s employment is terminated by reason of the Executive’s
death during the Employment Period, this Agreement and the Employment Period shall terminate
without further obligations to the Executive’s legal representatives under this Agreement, other
than the following obligations: (i) payment of the Executive’s Annual Base Salary through the Date
of Termination to the extent not theretofore paid, (ii) payment of any accrued bonus and (iii)
payment of any compensation previously deferred by the Executive (together with any accrued
interest thereon) and not yet paid by the Company and any accrued vacation pay not yet paid by the
Company (the amounts described in paragraphs (i), (ii) and (iii) are hereafter referred to as
“Accrued Obligations”). All Accrued Obligations shall be paid to the Executive’s estate or
beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination.
Anything in this Agreement to the contrary notwithstanding, the Executive’s estate and family shall
be entitled to receive any insurance or similar benefits (excluding stock options and stock
bonuses) provided generally by the Company and any of its Affiliated Companies to the estates and
surviving families of executives of the Company and such Affiliated Companies.

          (b) Disability. If the Executive’s employment is terminated by reason of the
Executive’s Disability during the Employment Period, this Agreement and the Employment Period shall
terminate without further obligations to the Executive, other than for Accrued Obligations. All
Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date
of Termination. Anything in this Agreement to the contrary notwithstanding, the Executive shall be
entitled after the Disability Effective Date to receive disability benefits at least equal to those
generally provided by the Company and its Affiliated Companies to disabled executives and/or their
families, if any, as in effect generally with respect to any executives of the Company and its
Affiliated Companies.

 

 

          (c) Cause; Other than for Good Reason. If the Executive’s employment shall be
terminated for Cause during the Employment Period, this Agreement and
the Employment Period shall terminate without further obligations to the Executive other than the
obligation to pay to the Executive Annual Base Salary through the Date of Termination plus the
amount of any compensation previously deferred by the Executive, in each case to the extent
theretofore unpaid. If the Executive terminates employment during the Employment Period other than
for Good Reason, this Agreement shall terminate without further obligations to the Executive, other
than for Accrued Obligations. In such case, all Accrued obligations shall be paid to the Executive
in a lump sum in cash within 30 days of the Date of Termination.

          (d) Good Reason; Other than for Cause or Disability. If, during the Employment
Period, the Company shall terminate the Executive’s employment other than for Cause or Disability,
or if the Executive shall terminate employment under this Agreement for Good Reason:

               (i) the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date
of Termination the aggregate of the following amounts:

                    A. all Accrued Obligations; and

                    B. the product of (x) the remainder of the Employment Period expressed as a decimal fraction
(example: assume Effective Date is October 19, 2005 and the Termination Date is January 31, 2006.
The remainder of the Employment Period would be one year and 260 days or 0.7123) and (y) the Annual
Base Salary; and

               (ii) for the remainder of the Employment Period, the Company shall continue benefits to the
Executive and/or the Executive’s family at least equal to those which would have been provided to
them in accordance with the plans, programs, practices and policies described in Section 4(b)(iii)
of this Agreement if the Executive’s employment had not been terminated in accordance with the
plans, practices, programs or policies of the Company and it Affiliated Companies. For purposes of
determining eligibility of the Executive for retiree benefits pursuant to such plans, practices,
programs and policies, the Executive shall be considered to have remained employed until the end of
the Employment Period and to have retired on the last day of such period.

     7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any benefit, bonus, incentive or other plans,
programs, policies or practices, provided by the Company or any of its Affiliated Companies and for
which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as
the Executive may have under any other agreements with the Company or any of its Affiliated
Companies. Amounts which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of the Company or any of its Affiliated
Companies at or subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program except as explicitly modified by this Agreement.

 

 

     8. Full Settlement. Executive shall not be obligated to seek other employment or take
any other action by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement. If Executive is the prevailing party in
any action hereunder, the Company agrees to pay, to the full extent permitted by law, all legal
fees and expenses which the Executive may reasonably incur as a result of any contest by the
Company, the Executive or others of the validity or enforceability of, or liability under, any
provision of this Agreement or any guarantee of performance thereof (including as a result of any
contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each
case interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Internal
Revenue Code of 1986, as amended (the “Code”).

     9. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its Affiliated Companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its Affiliated
Companies and which shall not be or become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement). After termination of the
Executive’s employment with the Company, the Executive shall not, without the prior written consent
of the Company, communicate or divulge any such information, knowledge or data to anyone other than
the Company and those designated by it.

     10. Successors.

          (a) This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive otherwise than by will or the laws of descent and
distribution as to certain benefits hereunder. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s legal representatives. This Agreement may be assigned by Company
without restriction to any entity, which is financially responsible for the performance of
Company’s obligations hereunder.

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

          (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

     11. Miscellaneous.

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

 

 

          (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, express mail, or a commercially recognized letter or package delivery service,
addressed as follows:

If to the Executive

                                                            

                                                            

                                                            

If to the Company

Canyon Resources Corporation

14142 Denver West Parkway, Suite 250

Golden, CO 80401

Attention: Chief Executive Officer

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

          (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

          (d) The Company may withhold from any amounts payable under this Agreement such Federal, state
or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

          (e) The Executive’s failure to insist upon strict compliance with any provision hereof or the
failure to assert any right the Executive may have hereunder, including, without limitation, the
right to terminate employment for Good Reason pursuant to Section 5(c)(i)-(v), shall not be deemed
to be a waiver of such provision or right or any other provision or right thereof.

     Executed this ___day of ___20___.

	 	 	 	 	 	 	 
	CANYON RESOURCES
CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(the “Executive”)

 

 

Schedule of Agreements with Current Officers

	 	 	 	 	 
	Name	 	Position	 	Date of Agreement
	James K. B. Hesketh

	 	President and Chief Executive
Officer
	 	March 1, 2005
	 
	 	 	 	 
	David P. Suleski

	 	Vice President and Chief
Accounting Officer
	 	January 3, 2006
	 
	 	 	 	 
	James A. Matlock

	 	Vice President-Exploration
	 	January 4, 2006
	 
	 	 	 	 
	Stuart L. Green

	 	Vice President-Operations
	 	October16, 2006exv4w1

 

Exhibit 4.1

INVESTOR’S RIGHTS AGREEMENT

     This INVESTOR’S RIGHTS AGREEMENT (this “Agreement”) dated as of June 8, 2006, is entered into
by and among Immediatek, Inc., a Nevada corporation (the “Company”), Radical Holdings LP, a Texas
limited partnership (the “Purchaser”), Zach Bair, an individual residing in the State of Texas
(“Bair”), and Paul Marin, an individual residing in the State of Texas (“Marin,” and together with
Bair, collectively, the “Founders”).

     A. The Company has filed a Certificate of Designation, Rights and Preferences establishing a
series of convertible preferred stock, namely, the Series A Convertible Preferred Stock, par value
$0.001 per share (the “Series A Preferred Stock”); and

     B. The Company, the Founders and the Purchaser are parties to that certain Securities Purchase
Agreement dated as of January 24, 2006 (the “Purchase Agreement”) pursuant to which the Company has
agreed to sell, and the Purchaser has agreed to purchase, 4,392,286 shares of the Series A
Preferred Stock (the “Series A Shares”) of the Company at the closing on the date hereof; and

     C. The Company’s and the Purchaser’s respective obligations under the Purchase Agreement are
conditioned upon the execution and delivery of this Agreement.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter
set forth, the parties hereto agree as follows.

ARTICLE I

REGISTRATION RIGHTS

     Section 1.1 Definitions. For purposes of this Agreement:

     (a) “Affiliate” means, with respect to any Person, (i) any other Person of which securities or
other ownership interests representing more than twenty percent (20%) of the voting interests are,
at the time such determination is being made, owned, Controlled or held, directly or indirectly, by
such Person or (ii) any other Person which, at the time such determination is being made, is
Controlling, Controlled by or under common Control with, such Person. As used herein, “Control”,
whether used as a noun or verb, refers to the possession, directly or indirectly, of the power to
direct, or cause the direction of, the management or policies of a Person, whether through the
ownership of voting securities or otherwise.

     (b) “Holder” means (i) the Purchaser, (ii) a Person that is a permitted transferee under
Section 1.11 hereof and (iii) a Person that owns Registrable Securities; provided, however,
that for purposes of this Agreement, Holders of Registrable Securities will not be required to
convert

Investor’s Rights Agreement (ITEK) v4

 

 

their Preferred Shares into Common Stock in order to exercise the registration rights granted
hereunder, until immediately before the closing of the offering to which the registration relates.

     (c) “NASD” means the National Association of Securities Dealers, Inc.

     (d) “Participating Holders” means Holders participating, or electing to participate, in an
offering of Registrable Securities.

     (e) “Person” means any individual, firm, corporation, company, partnership, trust,
incorporated or unincorporated association, limited liability company, joint venture, joint stock
company, government (or an agency or political subdivision thereof) or other entity of any kind,
and shall include any successor (by merger or otherwise) of any such entity.

     (f) “Preferred Shares” means the Series A Shares.

     (g) “Registrable Securities” means any shares of common stock of the Company (“Common Stock”)
(i) issued or issuable upon conversion of the Preferred Shares; (ii) otherwise held or deemed held
by conversion by the Purchaser or acquired pursuant to any other right; and (iii) issued or
issuable with respect to the securities referred to in clauses (i) and (ii) above by virtue of any
stock split, combination, stock dividend, merger, consolidation or other similar event;
provided, however, that shares of Common Stock that are considered to be
Registrable Securities shall cease to be Registrable Securities (A) upon the sale thereof pursuant
to an effective registration statement, (B) upon the transfer thereof in a private transaction
where the transferor’s rights under this Agreement are not assigned, or (C) when such securities
cease to be outstanding.

     (h) “Registration Expenses” mean all expenses (other than underwriting discounts and
commissions) arising from, or incident to, the performance of, or compliance with, this Agreement,
including, without limitation, (i) SEC, stock exchange, NASD and other registration and filing
fees, (ii) all fees and expenses incurred in connection with complying with any securities or blue
sky laws (including, without limitation, fees, charges and disbursements of counsel in connection
with blue sky qualifications of the Registrable Securities), (iii) all printing, messenger and
delivery expenses, (iv) the fees, charges and disbursements of counsel to the Company and of its
independent public accountants and any other accounting and legal fees, charges and expenses
incurred by the Company (including, without limitation, any expenses arising from any special
audits or “comfort letters” required in connection with or incident to any registration), (v) the
fees, charges and disbursements of any special experts retained by the Company in connection with
any registration pursuant to the terms of this Agreement, (vi) all internal expenses of the Company
(including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), (vii) the fees and expenses incurred in connection with the listing of
the Registrable Securities on any securities exchange or Nasdaq and (viii) Securities Act liability
insurance (if the Company elects to obtain such insurance), regardless of whether any Registration
Statement filed in connection with such registration is declared effective. “Registration
Expenses” shall also include fees, charges and disbursements of one (1) firm of counsel to all of
the Participating Holders participating in any underwritten public offering pursuant to this
Agreement (which shall be selected by a majority, based on the number of Registrable Securities to
be sold, of the Participating Holders).

Investor’s Rights Agreement (ITEK) v4

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Investor’s Rights Agreement (ITEK) v4

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     (i) “Registration Statement” shall mean any registration statement of the Company filed with the
SEC on the appropriate form pursuant to the Securities Act that covers any of the shares of Common
Stock and any other Registrable Securities pursuant to the provisions of this Agreement and all
amendments and supplements to any such Registration Statement, including post-effective amendments,
in each case including the prospectus contained therein, all exhibits thereto and all materials
incorporated by reference therein.

     (j) “SEC” or “Commission” means the United States Securities and Exchange Commission.

     (k) “Securities Act” means the Securities Act of 1933, as amended, or any similar federal
statute, and the rules and regulations of the Commission promulgated thereunder, all as the same
shall be in effect at the time.

     (l) “Selling Expenses” shall mean the underwriting fees, discounts, selling commissions and
stock transfer taxes applicable to all Registrable Securities registered by the Participating
Holders.

     Section 1.2. Demand Registration.

     (a) Request by Holders. If the Company receives at any time a written request
from Holders that hold at least twenty percent (20%) of the Registrable Securities then outstanding
(the “Requesting Holders”) that the Company register Registrable Securities held by Requesting
Holders (a “Demand Request”), then the Company shall, within ten (10) days after receipt of such
Demand Request, give written notice of such request (“Request Notice”) to all Holders. Each Demand
Request shall (x) specify the number of Registrable Securities that the Requesting Holders intend
to sell or dispose of, (y) state the intended method or methods of sale or disposition of the
Registrable Securities and (z) specify the expected price range (net of underwriting discounts and
commissions) acceptable to the Requesting Holders to be received for such Registrable Securities.
Following receipt of a Demand Request, the Company shall:

          (i) cause to be filed, as soon as practicable, but within ninety (90) days of the date of
delivery to the Company of the Demand Request, a Registration Statement covering such Registrable
Securities that the Company has been so requested to register by the Requesting Holders and other
Holders who request to the Company that their Registrable Securities be registered within twenty
(20) days of the mailing of the Request Notice, providing for the registration under the Securities
Act of such Registrable Securities to the extent necessary to permit the disposition of such
Registrable Securities in accordance with the intended method of distribution specified in such
Demand Request;

          (ii) use its best efforts to have such Registration Statement declared effective by the SEC as
soon as practicable thereafter; and

          (iii) refrain from filing any other Registration Statements, other than pursuant to a
Registration Statement on Form S-4 or S-8 (or similar or successor forms), with respect to any
other securities of the Company until such date that is one hundred and eighty (180) days following
effectiveness of the Registration Statement filed in response to the Demand Request.

Investor’s Rights Agreement (ITEK) v4

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     (b) Effective Registration Statement. A registration requested pursuant to this
Agreement shall not be deemed to have been effected (i) unless a Registration Statement with
respect thereto has become effective and remained effective in compliance with the provisions of
the Securities Act with respect to the disposition of all Registrable Securities covered by such
Registration Statement until such time as all of such Registrable Securities have been disposed of
in accordance with the intended methods of disposition by the Holders thereof set forth in such
Registration Statement; (ii) if, after it has become effective, such registration is interfered
with by any stop order, injunction or other order or requirement of the SEC or other governmental
agency or court and has not thereafter become effective, or if the offering of Registrable
Securities is not consummated for any reason, including, without limitation, if the underwriters of
an underwritten public offering advise the Participating Holders that the Registrable Securities
cannot be sold at a net price per share equal to or above the net price disclosed in the
preliminary prospectus; (iii) if the conditions to closing specified in the underwriting agreement,
if any, entered into in connection with such registration are not satisfied or waived; or (iv) if
the Requesting Holders are cut back regarding the Registrable Securities requested to be
registered.

     (c) Selection of Underwriters. In the event that the Company is required to file a
Registration Statement covering any Registrable Securities of any Requesting Holders pursuant to
Section 1.2(a) hereof and the proposed public offering is to be an underwritten public
offering, the managing underwriter shall be one or more reputable, nationally recognized investment
banks selected by a majority in interest of the Requesting Holders and reasonably acceptable to the
Company, which consent shall not be unreasonably withheld, delayed or conditioned.

     (d) Priority for Demand Registration. Notwithstanding any other provision of this
Agreement, if the managing underwriter of an underwritten public offering determines and advises
the Participating Holders and the Company in writing that the inclusion of all securities proposed
to be included by the Company and any other Holders in the underwritten public offering would
materially and adversely interfere with the successful marketing of the Requesting Holders’
Registrable Securities, then the Company and other Holders shall not be permitted to include any
securities in excess of the amount, if any, of securities that the managing underwriter of such
underwritten public offering shall reasonably and in good faith agree in writing to include in such
public offering in addition to the amount of Registrable Securities to be registered for the
Requesting Holders. The Company will be obligated to include in such Registration Statement, as to
each Holder, only a portion of the Registrable Securities such Holder has requested be registered
equal to the ratio which such Holder’s requested Registrable Securities bears to the total number
of Registrable Securities requested to be included in such Registration Statement by all Holders
who have requested that their Registrable Securities be included in such Registration Statement. It
is acknowledged by the parties hereto that pursuant to the foregoing provision, the securities to
be included in a registration requested by the Requesting Holders pursuant to Section 1.2
shall be allocated:

          (i) first, to the Participating Holders; and

          (ii) second, to the Company and any other shareholders of the Company requesting registration
of securities of the Company.

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     (e) Limitations on Demand Registrations.

          (i) The Company may delay making a filing of a Registration Statement or taking action in
connection therewith by not more than ninety (90) days if the Company provides a written
certificate signed by the President and Chief Executive Officer of the Company to the
Holders, prior to the time it would otherwise have been required to file such Registration
Statement or take such action pursuant to this Section 1.2, stating that the Board has
determined in good faith that the filing of such Registration Statement would be seriously
detrimental to the Company or would otherwise materially adversely affect a financing, acquisition,
disposition, merger or other material transaction (collectively, a “Valid Business Reason”) and
that it is therefore essential to defer the filing of the Registration Statement; provided,
however, that such right to delay a Demand Request shall be exercised by the Company not
more than once in any twelve (12) month period and the Company shall only have the right to delay a
Demand Request so long as such Valid Business Reason exists, and during such time, the Company may
not file a Registration Statement for securities to be issued and sold for its own account or for
that of anyone other than the Holders.

          (ii) The Company shall only be obligated to effect two (2) Demand Requests pursuant to this
Section 1.2.

          (iii) The Company shall not be required to comply with a Demand Request unless the reasonably
anticipated aggregate gross proceeds to be raised (before any underwriting discounts and
commissions) would be equal to or exceed $1,000,000.

     (f) Cancellation of Registration. A majority in interest of the Participating Holders
shall have the right to cancel a proposed registration of Registrable Securities pursuant to this
Section 1.2 when, (i) in their discretion, market conditions are so unfavorable as to be
seriously detrimental to an offering pursuant to such registration or (ii) the request for
cancellation is based upon material adverse information relating to the Company that is different
from the information known to the Participating Holders at the time of the Demand Request. Such
cancellation of a registration shall not be counted as one of the two (2) Demand Requests, and
notwithstanding anything to the contrary in the Agreement, the Company shall be responsible for the
expenses of the Participating Holders incurred in connection with the registration prior to the
time of cancellation.

     Section 1.3. Piggyback Registrations.

     (a) Right to Include Registrable Securities. Each time that the Company proposes for
any reason to register any of its Common Stock under the Securities Act, either for its own account
or for the account of a stockholder or stockholders exercising demand registration rights other
than Demand Requests pursuant to Section 1.2 hereof or pursuant to a Registration Statement
on Forms S-4 or S-8 (or similar or successor forms) (a “Proposed Registration”), the Company shall
promptly give written notice of such Proposed Registration to all of the Holders of Registrable
Securities (which notice shall be given not less than thirty (30) days prior to the expected
effective date of the Company’s Registration Statement) and shall offer such Holders the right to
request inclusion of any of such Holder’s Registrable Securities in the Proposed Registration. No
registration pursuant to this Section 1.3 shall relieve the Company of its

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obligation to register Registrable Securities pursuant to a Demand Request, as contemplated by
Section 1.2 hereof. The rights to piggyback registration may be exercised an unlimited
number of occasions.

     (b) Piggyback Procedure. Each Holder of Registrable Securities shall have twenty (20)
days from the date of receipt of the Company’s notice referred to in Section 1.3(a) above
to deliver to the Company a written request specifying the number of Registrable Securities such
Holder intends to sell and such Holder’s intended method of disposition. Any Holder shall have the
right to withdraw such Holder’s request for inclusion of such holder’s Registrable Securities in
any Registration Statement pursuant to this Section 1.3 by giving written notice to the
Company of such withdrawal. Subject to Section 1.3(d) below, the Company shall use its
best efforts to include in such Registration Statement all such Registrable Securities so requested
to be included therein; provided, however, that the Company may at any time
withdraw or cease proceeding with any such Proposed Registration if it shall at the same time
withdraw or cease proceeding with the registration of all other shares of Common Stock originally
proposed to be registered.

     (c) Selection of Underwriters. The managing underwriter for any Proposed Registration
that involves an underwritten public offering shall be one or more reputable, nationally recognized
investment banks selected by the Company and reasonably acceptable to a majority in interest of the
Holders.

     (d) Priority for Piggyback Registration. Notwithstanding any other provision of this
Agreement, if the managing underwriter of an underwritten public offering determines and advises
the Company and the Holders in writing that the inclusion of all Registrable Securities proposed to
be included by the Holders of Registrable Securities in the underwritten public offering would
materially and adversely interfere with the successful marketing of the Company’s securities, then
the Holders of Registrable Securities shall not be permitted to include any Registrable Securities
in excess of the amount, if any, of Registrable Securities that the managing underwriter of such
underwritten public offering shall reasonably and in good faith agree in writing to include in such
public offering in addition to the amount of securities to be registered for the Company. The
Company will be obligated to include in such Registration Statement, as to each Holder, only a
portion of the Registrable Securities such Holder has requested be registered equal to the ratio
which such Holder’s requested Registrable Securities bears to the total number of Registrable
Securities requested to be included in such Registration Statement by all Holders who have
requested that their Registrable Securities be included in such Registration Statement. It is
acknowledged by the parties hereto that, pursuant to the foregoing provision, the securities to be
included in a registration initiated by the Company shall be allocated:

          (i) first, to the Company; and

          (ii) second, pari passu among the Holders and all other holders of securities of the Company
with piggyback registration rights.

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     If as a result of the provisions of this Section 1.3(d), any Holder shall not be
entitled to include all of its Registrable Securities in a registration that such Holder has
requested to be so included, such Holder may withdraw such Holder’s request to include Registrable
Securities in such Registration Statement.

     (e) Underwritten Offering. In the event that the Proposed Registration by the Company
is, in whole or in part, an underwritten public offering of securities of the Company, any request
under this Section 1.3 shall specify that the Registrable Securities be included in the
underwriting on the same terms and conditions as the shares, if any, otherwise being sold through
underwriters under such registration.

     Section 1.4 Form S-3 Registration. Any Holder (an “Initiating Form S-3 Holder”) may
request, at any time, that the Company file a Registration Statement under the Securities Act on
Form S-3 (or similar or successor form) covering the sale or other distribution of all or any
portion of the Registrable Securities held by such Initiating Form S-3 Holder pursuant to Rule 415
under the Securities Act (“Form S-3 Demand”) if (i) the reasonably anticipated aggregate gross
proceeds would equal or exceed $5,000,000, (ii) the Company is a registrant qualified to use Form
S-3 (or any similar or successor form) to register such Registrable Securities and (iii) the plan
of distribution of the Registrable Securities is other than pursuant to an underwritten public
offering. If such conditions are met, the Company shall use its best efforts to register under the
Securities Act on Form S-3 (or any similar or successor form) at the earliest practicable date, for
sale in accordance with the method of disposition specified in the Form S-3 Demand, the number of
Registrable Securities specified in such Form S-3 Demand. In connection with a Form S-3 Demand,
the Company agrees to include in the prospectus included in any Registration Statement on Form S-3,
such material describing the Company and intended to facilitate the sale of securities being so
registered as is reasonably requested for inclusion therein by the Initiating Form S-3 Holders,
whether or not the rules applicable to preparation of Form S-3 require the inclusion of such
information. Notwithstanding the foregoing, if the Company shall furnish to the Initiating Form
S-3 Holders a certificate signed by the Chief Executive Officer and Chief Financial Officer of the
Company stating that in the good faith opinion of the Board of Directors of the Company, a Valid
Business Reason exists, the Company shall have the right to delay or defer taking action with
respect to such filing for a period of ninety (90) days after receipt of the Form S-3 Demand;
provided, however, that such right to delay or defer a Form S-3 Demand shall be
exercised by the Company not more than once in any twelve (12) month period, the Company shall only
have the right to delay a Form S-3 Demand so long as such Valid Business Reason exists, and during
such time the Company may not file a Registration Statement for securities to be issued and sold
for its own account or for that of any other Holders. Form S-3 Demands will not be deemed to be
Demand Requests as described in Section 1.2 hereof and Holders shall have the right to
request an unlimited number of Form S-3 Demands. Notwithstanding the foregoing, the Company shall
not be obligated to file more than one (1) Registration Statement on Form S-3 pursuant to this
Section 1.4 in any given six (6) month period.

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     Section 1.5. Registration Procedures.

     (a) Obligations of the Company. Whenever registration of Registrable Securities is
required pursuant to this Agreement, the Company shall use its best efforts to effect the
registration and sale of such Registrable Securities in accordance with the intended method of
distribution thereof as promptly as possible, and in connection with any such request, the Company
shall, as expeditiously as possible:

          (i) Preparation of Registration Statement; Effectiveness. Prepare and file with the SEC (in
any event not later than ninety (90) days after receipt of a Demand Request to file a Registration
Statement with respect to Registrable Securities), a Registration Statement on any form on which
the Company then qualifies, which counsel for the Company shall deem appropriate and pursuant to
which such offering may be made in accordance with the intended method of distribution thereof
(except that the Registration Statement shall contain such information as may reasonably be
requested for marketing or other purposes by the managing underwriter), and use its best efforts to
cause any registration required hereunder to become effective as soon as practicable after the
initial filing thereof and remain effective for a period of not less than one hundred and eighty
(180) days (or such shorter period in which all Registrable Securities have been sold in accordance
with the methods of distribution set forth in the Registration Statement); provided,
however, that, in the case of any registration of Registrable Securities on Form S-3 that
are intended to be offered on a continuous or delayed basis, such one hundred eighty (180) day
period shall be extended, if necessary, to keep the Registration Statement effective until all such
Registrable Securities are sold, provided that Rule 415, or any successor rule under the
Securities Act, permits an offering on a continuous or delayed basis;

          (ii) Participation in Preparation. Provide any Participating Holder, any underwriter
participating in any disposition pursuant to a Registration Statement and any attorney, accountant
or other agent retained by any Participating Holder or underwriter (each, an “Inspector” and,
collectively, the “Inspectors”), the opportunity to reasonably participate (including, but not
limited to, reviewing, commenting on and attending all meetings) in the preparation of such
Registration Statement, each prospectus included therein or filed with the SEC and each amendment
or supplement thereto;

          (iii) Due Diligence. For a reasonable period prior to the filing of any Registration
Statement pursuant to this Agreement, make available for inspection and copying by the Inspectors
such financial and other information and books and records, pertinent corporate documents and
properties of the Company and its subsidiaries and cause the officers, directors, employees,
counsel and independent registered public accountants of the Company and its subsidiaries to
respond to such inquiries and to supply all information reasonably requested by any such Inspector
in connection with such Registration Statement, as shall be reasonably necessary, in the judgment
of the respective counsel referred to in Section 1.5(a)(ii), to conduct a reasonable
investigation within the meaning of the Securities Act;

          (iv) General Notifications. Promptly notify in writing the Participating Holders, the sales
or placement agent, if any, therefor and the managing underwriter of the securities being sold, (A)
when such Registration Statement or the prospectus included therein or any prospectus amendment or
supplement or post-effective amendment has been filed, and, with

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respect to any such Registration Statement or any post-effective amendment, when the same has
become effective, (B) when the SEC notifies the Company whether there will be a “review” of such
Registration Statement and (C) of any comments (oral or written) by the SEC and by the blue sky or
securities commissioner or regulator of any state with respect thereto or (D) of any request by the
SEC for any amendments or supplements to such Registration Statement or the prospectus or for
additional information;

          (v) 10b-5 Notification. Promptly notify in writing the Participating Holders, the sales or
placement agent, if any, therefor and the managing underwriter of the securities being sold
pursuant to any Registration Statement at any time when a prospectus relating thereto is required
to be delivered under the Securities Act upon discovery that, or upon the happening of any event as
a result of which, any prospectus included in such Registration Statement (or amendment or
supplement thereto) contains an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein not misleading in
light of the circumstances under which they were made, and the Company shall promptly prepare a
supplement or amendment to such prospectus and file it with the SEC (in any event no later than ten
(10) days following notice of the occurrence of such event to each Participating Holder, the sales
or placement agent and the managing underwriter) so that after delivery of such prospectus, as so
amended or supplemented, to the purchasers of such Registrable Securities, such prospectus, as so
amended or supplemented, shall not contain an untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which they were made;

          (vi) Notification of Stop Orders; Suspensions of Qualifications and Exemptions. Promptly
notify in writing the Participating Holders, the sales or placement agent, if any, therefor and the
managing underwriter of the securities being sold of the issuance by the SEC of (A) any stop order
issued or threatened to be issued by the SEC or (B) any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable Securities for sale
in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and the
Company agrees to use commercially reasonable best efforts to (x) prevent the issuance of any such
stop order, and in the event of such issuance, to obtain the withdrawal of any such stop order and
(y) obtain the withdrawal of any order suspending or preventing the use of any related prospectus
or suspending the qualification of any Registrable Securities included in such Registration
Statement for sale in any jurisdiction at the earliest practicable date;

          (vii) Amendments and Supplements; Acceleration. Prepare and file with the SEC such
amendments, including post-effective amendments to each Registration Statement as may be necessary
to keep such Registration Statement continuously effective for the applicable time period required
hereunder and, if applicable, file any Registration Statements pursuant to Rule 462(b) under the
Securities Act; cause the related prospectus to be supplemented by any required prospectus
supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then
in force) promulgated under the Securities Act; and comply with the provisions of the Securities
Act and the Exchange Act with respect to the disposition of all securities covered by such
Registration Statement during such period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as

Investor’s Rights Agreement (ITEK) v4

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so amended or in such prospectus as so supplemented. If a majority in interest of the
Participating Holders so request, to request acceleration of effectiveness of the Registration
Statement from the SEC and any post-effective amendments thereto, if any are filed;
provided that at the time of such request, the Company does not in good faith believe that
it is necessary to amend further the Registration Statement in order to comply with the provisions
of this subparagraph. If the Company wishes to further amend the Registration Statement prior to
requesting acceleration, it shall have five (5) days to so amend prior to requesting acceleration;

          (viii) Copies. Furnish as promptly as practicable to each Participating Holder and Inspector
prior to filing a Registration Statement or any supplement or amendment thereto, copies of such
Registration Statement, supplement or amendment as it is proposed to be filed, and after such
filing such number of copies of such Registration Statement, each amendment and supplement thereto
(in each case including all exhibits thereto), the prospectus included in such Registration
Statement (including each preliminary prospectus) and such other documents as each such
Participating Holder or underwriter may reasonably request in order to facilitate the disposition
of the Registrable Securities owned by such Participating Holder;

          (ix) Blue Sky. Use commercially reasonable efforts to, prior to any public offering of the
Registrable Securities, register or qualify (or seek an exemption from registration or
qualifications) such Registrable Securities under such other securities or blue sky laws of such
jurisdictions as any Participating Holder or underwriter may request, and to continue such
qualification in effect in each such jurisdiction for as long as is permissible pursuant to the
laws of such jurisdiction, or for as long as a Participating Holder or underwriter requests or
until all of such Registrable Securities are sold, whichever is shortest, and do any and all other
acts and things which may be reasonably necessary or advisable to enable any Participating Holder
to consummate the disposition in such jurisdictions of the Registrable Securities;

          (x) Other Approvals. Use commercially reasonable efforts to obtain all other approvals,
consents, exemptions or authorizations from such governmental agencies or authorities as may be
necessary to enable the Participating Holders and underwriters to consummate the disposition of
Registrable Securities;

          (xi) Agreements. Enter into customary agreements (including any underwriting agreements in
customary form), and take such other actions as may be reasonably required in order to expedite or
facilitate the disposition of Registrable Securities;

          (xii) “Cold Comfort” Letter. Obtain a “cold comfort” letter from the Company’s independent
public accountants in customary form and covering such matters of the type customarily covered by
“cold comfort” letters as the managing underwriter may reasonably request, and reasonably
satisfactory to a majority in interest of the Participating Holders;

          (xiii) Legal Opinion. Furnish, at the request of any underwriter of Registrable Securities on
the date such securities are delivered to the underwriters for sale pursuant to such registration,
an opinion, dated such date, of counsel representing the Company for the purposes of such
registration, addressed to the Holders, and the placement agent or sales agent, if any, thereof and
the underwriters, if any, thereof, covering such legal matters with respect to the registration in
respect of which such opinion is being given as such underwriter may reasonably

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request and as are customarily included in such opinions, and reasonably satisfactory to a
majority in interest of the Participating Holders;

          (xiv) SEC Compliance, Earnings Statement. Use its best efforts to comply with all applicable
rules and regulations of the SEC and make available to its shareholders, as soon as reasonably
practicable, but no later than fifteen (15) months after the effective date of any Registration
Statement, an earnings statement covering a period of twelve (12) months beginning after the
effective date of such Registration Statement, in a manner which satisfies the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder;

          (xv) Certificates, Closing. Provide officers’ certificates and other customary closing
documents;

          (xvi) NASD. Cooperate with each Participating Holder and each underwriter participating in
the disposition of such Registrable Securities and underwriters’ counsel in connection with any
filings required to be made with the NASD;

          (xvii) Road Show. Cause appropriate officers as are requested by an managing underwriter to
participate in a “road show” or similar marketing effort being conducted by such underwriter with
respect to an underwritten public offering;

          (xviii) Listing. Use its best efforts to cause all such Registrable Securities to be listed
on each securities exchange on which similar securities issued by the Company are then listed and
if not so listed, to be eligible for quotation on the NASD automated quotation system;

          (xix) Transfer Agent, Registrar and CUSIP. Provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereto and a CUSIP number for all such Registrable
Securities, in each case, no later than the effective date of such registration;

          (xx) Private Sales. Use its best efforts to assist a Holder in facilitating private sales of
Registrable Securities by, among other things, providing officers’ certificates and other customary
closing documents; and

          (xxi) Commercially Reasonable Efforts. Use commercially reasonable efforts to take all other
actions necessary to effect the registration of the Registrable Securities contemplated hereby.

     (b) Seller Information. The Company may require each Participating Holder as to which
any registration of such Holder’s Registrable Securities is being effected to furnish the Company
with such information regarding such Participating Holder and such Participating Holder’s method of
distribution of such Registrable Securities as the Company may from time to time reasonably request
in writing.

     (c) Notice to Discontinue. Each Participating Holder whose Registrable Securities are
covered by a Registration Statement filed pursuant to this Agreement agrees that, upon receipt of
written notice from the Company of the happening of any event of the kind described in Section
1.5(a)(v), such Participating Holder shall forthwith discontinue the disposition of Registrable
Securities until such Participating Holder’s receipt of the copies of the supplemented

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or amended prospectus contemplated by Section 1.5(a)(v) or until it is advised in
writing by the Company that the use of the prospectus may be resumed and has received copies of any
additional or supplemental filings which are incorporated by reference into the prospectus, and, if
so directed by the Company in the case of an event described in Section 1.5(a)(v), such
Participating Holder shall deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Participating Holder’s possession, of the prospectus covering
such Registrable Securities which is current at the time of receipt of such notice. If the Company
shall give any such notice, the Company shall extend the period during which such Registration
Statement is to be maintained effective by the number of days during the period from and including
the date of the giving of such notice pursuant to Section 1.5(a)(v) to and including the
date when the Participating Holder shall have received the copies of the supplemented or amended
prospectus contemplated by, and meeting the requirements of, Section 1.5(a)(v).

     Section 1.6. Registration Expenses. Except as otherwise provided herein, all
Registration Expenses shall be borne by the Company. All Selling Expenses relating to Registrable
Securities registered shall be borne by the Participating Holders of such Registrable Securities
pro rata on the basis of the number of shares so registered.

     Section 1.7. Indemnification.

     (a) Indemnification by the Company. The Company agrees, notwithstanding termination
of this Agreement, to indemnify and hold harmless to the fullest extent permitted by law, each
Holder, each of its directors, officers, employees, advisors, agents and general or limited
partners (and the directors, officers, employees, advisors and agents thereof), their respective
Affiliates and each Person who controls (within the meaning of the Securities Act or the Exchange
Act) any of such Persons, and each underwriter and each Person who controls (within the meaning of
the Securities Act or the Exchange Act) any underwriter (collectively, “Holder Indemnified
Parties”) from and against any and all losses, claims, damages, expenses (including, without
limitation, reasonable costs of investigation and fees, disbursements and other charges of counsel,
any amounts paid in settlement effected with the Company’s consent, which consent shall not be
unreasonably withheld or delayed and any costs incurred in enforcing the Company’s indemnification
obligations hereunder) or other liabilities (collectively, “Losses”) to which any such Holder
Indemnified Party may become subject under the Securities Act, Exchange Act, any other federal law,
any state or common law or any rule or regulation promulgated thereunder or otherwise, insofar as
such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) are
resulting from or arising out of or based upon (i) any untrue, or alleged untrue, statement of a
material fact contained in any Registration Statement, prospectus or preliminary prospectus (as
amended or supplemented) or any document incorporated by reference in any of the foregoing or
resulting from or arising out of or based upon any omission, or alleged omission, to state therein
a material fact required to be stated therein or necessary to make the statements therein (in the
case of a prospectus, in light of the circumstances under which they were made), not misleading or
(ii) any violation by the Company of the Securities Act, Exchange Act, any other federal law, any
state or common law or any rule or regulation promulgated thereunder or otherwise incident to any
registration, qualification or compliance and in any such case, the Company will promptly reimburse
each such Holder Indemnified Party for any legal and any other Losses reasonably incurred in

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connection with investigating, preparing or defending any such claim, loss, damage, liability,
action or investigation or proceeding (collectively, a “Claim”); provided, however,
that the Company shall not be liable to any Holder Indemnified Party for any Losses that arise out
of or are based upon written information provided by a Holder Indemnified Party specifically
stating it is for use in the Registration Statement. Such indemnity obligation shall remain in
full force and effect regardless of any investigation made by or on behalf of the Holder
Indemnified Parties and shall survive the transfer of Registrable Securities by such Holder
Indemnified Parties.

     (b) Indemnification by Holders. In connection with any proposed registration in which
a Holder is participating pursuant to this Agreement, each such Holder shall furnish to the Company
in writing such information with respect to such Holder as the Company may reasonably request or as
may be required by law for use in connection with any Registration Statement or prospectus or
preliminary prospectus to be used in connection with such registration and each Holder agrees,
severally and not jointly, to indemnify and hold harmless the Company, any underwriter retained by
the Company and their respective directors, officers, partners, employees, advisors and agents,
their respective Affiliates and each Person who controls (within the meaning of the Securities Act
or the Exchange Act) any of such Persons to the same extent as the foregoing indemnity from the
Company to the Holders as set forth in Section 1.7(a) (subject to the exceptions set forth
in the foregoing indemnity, the proviso to this sentence and applicable law), but only with respect
to any such information furnished in writing by such Holder expressly for use therein;
provided, however, that the liability of any Holder under this Section
1.7(b) shall be limited to the amount of the net proceeds received by such Holder in the
offering giving rise to such liability. Such indemnity obligation shall remain in full force and
effect regardless of any investigation made by or on behalf of the Holder Indemnified Parties
(except as provided above) and shall survive the transfer of Registrable Securities by such Holder.

     (c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification
hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party
(the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the
commencement of any action, suit, proceeding or investigation or threat thereof made in writing for
which the Indemnified Party intends to claim indemnification or contribution pursuant to this
Agreement; provided, however, that, the failure to so notify the Indemnifying Party
shall not relieve the Indemnifying Party of any liability that it may have to the Indemnified Party
hereunder unless and to the extent such Indemnifying Party is materially prejudiced by such
failure. If notice of commencement of any such action is given to the Indemnifying Party as above
provided, the Indemnifying Party shall be entitled to participate in and, to the extent it may
wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such
action at its own expense, with counsel chosen by it and reasonably satisfactory to such
Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of such counsel shall
be paid by the Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the
Indemnifying Party fails to assume the defense of such action with counsel satisfactory to the
Indemnified Party in its reasonable judgment or (iii) the named parties to any such action
(including, but not limited to, any impleaded parties) reasonably believe that the representation
of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate
under applicable standards of professional conduct. In the case of clause (ii) above

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and (iii) above, the Indemnifying Party shall not have the right to assume the defense of such
action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any
settlement entered into without its written consent, which consent shall not be unreasonably
withheld. No Indemnifying Party shall, without the written consent of the Indemnified Party,
effect the settlement of, compromise or consent to the entry of any judgment with respect to, any
pending or threatened action or claim in respect of which indemnification or contribution may be
sought hereunder (whether or not the Indemnified Party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (A) includes an unconditional
release of the Indemnified Party from all liability arising out of such action or claim and (B)
does not include a statement as to, or an admission of, fault, culpability or a failure to act by
or on behalf of any Indemnified Party. The rights afforded to any Indemnified Party hereunder
shall be in addition to any rights that such Indemnified Party may have at common law, by separate
agreement or otherwise.

     (d) Contribution. If the indemnification provided for in this Section 1.7
from the Indemnifying Party is unavailable or insufficient to hold harmless an Indemnified Party in
respect of any Losses referred to herein, then the Indemnifying Party, in lieu of indemnifying the
Indemnified Party, shall contribute to the amount paid or payable by the Indemnified Party as a
result of such Losses in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party and the Indemnified Party, as well as any other relevant equitable
considerations. The relative faults of the Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact, was made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Party, and the Indemnifying Party’s and Indemnified Party’s relative intent, knowledge,
access to information and opportunity to correct or prevent such action; provided,
however, that the liability of any Holder under this Section 1.7(d) shall be
limited to the amount of the net proceeds received by such Holder in the offering giving rise to
such liability. The amount paid or payable by a party as a result of the Losses or other
liabilities referred to above shall be deemed to include, subject to the limitations set forth in
Sections 1.7(a), 1.7(b) and 1.7(c), any legal or other fees, charges or
expenses reasonably incurred by such party in connection with any investigation or proceeding.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 1.7(d) were determined by pro rata allocation or by any other method of
allocation that does not take account of the equitable considerations referred to in the
immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this
Section 1.7(d).

     Section 1.8. Rule 144 and Rule 144A; Other Exemptions. With a view to making available
to the Holders the benefits of Rule 144 and Rule 144A promulgated under the Securities Act and
other rules and regulations of the SEC that may at any time permit a Holder to sell securities of
the Company to the public without registration, the Company covenants that it shall (i) file in a
timely manner all reports and other documents required to be filed by it under the Securities Act
and the Exchange Act and the rules and regulations promulgated by the SEC thereunder and (ii) take
such further action as each Holder may reasonably request (including,

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but not limited to, providing any information necessary to comply with Rule 144 and Rule 144A, if
available with respect to resales of the Registrable Securities under the Securities Act), all to
the extent required from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions provided by (x) Rule
144 and Rule 144A (if available with respect to resales of the Registrable Securities) under the
Securities Act, as such rules may be amended from time to time or (y) any other rules or
regulations now existing or hereafter adopted by the SEC. Upon the written request of a Holder,
the Company shall deliver to the Holder a written statement as to whether it has complied with such
requirements.

     Section 1.9. Certain Limitations On Registration Rights. No Holder may
participate in any Registration Statement hereunder unless such Holder completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements and agrees to sell such
Holder’s Registrable Securities on the basis provided in any underwriting agreement approved by the
Holder or Holders entitled hereunder to approve such arrangements; provided,
however, that no such Holder shall be required to make any representations or warranties to
the Company or the underwriters in connection with any such registration other than representations
and warranties as to (i) such Holder’s ownership of its Registrable Securities to be sold or
transferred, (ii) such Holder’s power and authority to effect such transfer and (iii) such matters
pertaining to compliance with securities laws as may be reasonably requested. Such Holders of
Registrable Securities to be sold by such underwriters may, at their option, require that any or
all of the representations and warranties by, and the other agreements on the part of the Company
to and for the benefit of such underwriters, shall also be made to and for the benefit of such
Holders and that any or all of the conditions precedent to the obligations of the underwriters
under the underwriting agreement be conditions precedent to the obligations of the Holders.

     Section 1.10. Limitations on Subsequent Registration Rights. The Company agrees that
from and after the date of this Agreement, it shall not, without the prior written consent of the
Holders of at least 51% of the Registrable Securities then outstanding, enter into any agreement
(or amendment or waiver of the provisions of any agreement) with any holder or prospective holder
of any securities of the Company that would grant such holder registration rights that are more
favorable, pari passu or senior to those granted to the Purchaser hereunder.

     Section 1.11. Transfer of Registration Rights. The rights of a Holder hereunder may be
transferred or assigned in connection with a transfer of Registrable Securities to (i) any
Affiliate of a Holder, (ii) any subsidiary, parent, partner, limited partner, shareholder or member
of a Holder or (iii) any party or parties to a transaction or series of related transactions who,
after such transaction, holds or collectively hold at least 1,000,000 shares of Registrable
Securities (as adjusted for any stock dividends, stock splits, combinations and reorganizations and
similar events). Notwithstanding the foregoing, such rights may only be transferred or assigned
provided that all of the following additional conditions are satisfied: (a) such transfer or
assignment is effected in accordance with applicable securities laws; (b) such transferee or
assignee agrees in writing to become subject to the terms of this Agreement; and (c) the Company is
given written notice by such Holder of such transfer or assignment, stating the name and address of
the transferee or assignee and identifying the Registrable Securities with respect to which such
rights are being transferred or assigned.

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ARTICLE II

COVENANTS OF THE COMPANY

     The Company hereby covenants with the Purchaser as follows:

     Section 2.1 Rights to Appoint Directors; Notice. For so long as any shares of the
Series A Preferred Stock originally issued under the Purchase Agreement remain outstanding, the
holders of a majority-in-interest of the shares of the Series A Preferred Stock originally issued
under the Purchase Agreement then outstanding shall have the right to designate all the Persons to
serve as directors on the Board of Directors of the Company and its subsidiaries. If the holders
of the shares of the Series A Preferred Stock originally issued under the Purchase Agreement then
outstanding choose not to designate any directors, the holders of a majority-in-interest of the
shares of the Series A Preferred Stock originally issued under the Purchase Agreement then
outstanding may appoint a designee to serve as an observer at all meetings of the Company’s or its
subsidiaries’ Board of Directors and committees thereof, and such designee will be (a) entitled to
all notices of meetings of the Board of Directors and committees thereof and all instruments in
which action is proposed to be taken by written consent in lieu of a meeting, each as and when
provided to the directors, and (b) furnished with the materials furnished to the directors for such
meetings or written consents in lieu of a meeting. Notwithstanding anything herein to the
contrary, for so long as the Purchaser owns any of the shares of the Series A Preferred Stock then
issued and outstanding, the directors or any committee of directors of the Company or its
subsidiaries shall not hold a meeting or take any action by written consent, unless written notice
thereof, which contains a reasonable description of the matters to be acted upon, is sent to the
Purchaser at least ten calendar days in advance of the action proposed to be taken.

     Section 2.2 Protective Provisions. Unless the directors designated by the holders of
the shares of the Series A Preferred Stock originally issued under the Purchase Agreement control
the Board of Directors of the Company with respect to all actions, for so long as any shares of the
Series A Preferred Stock originally issued under the Purchase Agreement remain outstanding, the
Company shall not, and the Company shall cause its subsidiaries not to, without the approval of the
holders of at least 75% of the shares of the Series A Preferred Stock originally issued under the
Purchase Agreement then outstanding:

     (a) amend the charter or bylaws in any manner that would alter or change any of the rights,
preferences, privileges or restrictions of the Series A Preferred Stock or the Preferred Stock
Conversion Shares (as defined in the Purchase Agreement);

     (b) reclassify any outstanding securities into securities having rights, preferences or
privileges senior to, or on a parity with, the Series A Preferred Stock;

     (c) authorize or issue any additional shares of capital stock (other than to Purchaser in
accordance with this Agreement or the Purchase Agreement);

     (d) merge or consolidate with or into any corporation or other Person;

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     (e) sell all or substantially all their respective assets in a single transaction or series of
related transactions;

     (f) license all or substantially all of their respective intellectual property in a single
transaction or series of related transactions;

     (g) liquidate or dissolve; or

     (h) alter any rights of the holders of the Series A Preferred Stock or change the size of the
Board of Directors.

     (i) declare or pay any dividends (other than dividends payable to the Company or its
subsidiaries) on or declare or make any other distribution, directly or indirectly, on account of
any shares of Common Stock now or hereafter outstanding;

     (j) repurchase any outstanding shares of capital stock (other than repurchases or redemptions
of the Series A Preferred Stock in accordance with its terms);

     (k) approve or modify by 10% or more the aggregate amount of any annual or other operating or
capital budget, or approve or modify by 50% or more any single line item of any such operating or
capital budget;

     (l) increase the salary of any officer or employee or pay any bonus to any officer, director
or employee not contemplated in a budget or bonus plan approved by directors designated by the
holders of the shares of the Series A Preferred Stock originally issued under the Purchase
Agreement then outstanding;

     (m) retain, terminate or enter into any salary or employment negotiations or employment
agreement with any employee or any future employee;

     (n) incur indebtedness (other than trade payables) or enter into contracts or leases that
require payments in excess of $5,000 in the aggregate;

     (o) make or incur any single capital expenditure;

     (p) award stock options, stock appreciation rights or similar employee benefits or determine
vesting schedules, exercise prices or similar features;

     (q) make any material change in the nature of its business or enter into any new line of
business, joint venture or similar arrangement;

     (r) pledge its assets or guarantee the obligations of any other individual or entity;

     (s) recommend approval of any new equity incentive plan;

     (t) form or acquire any subsidiary, joint venture or similar business entity; or

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     (u) directly or indirectly enter into, or permit to exist, any material transaction with any
affiliate of the Company, any Founder or any affiliate of a Founder, or transfer, pay, loan or
otherwise obligate the Company to give cash, services, assets or other items of value to
affiliates, Founders or any affiliate of a Founder or commit to do any of the preceding after the
date hereof, except for employee compensation or for reimbursement of ordinary business expenses.

     Section 2.3 Budget; Other Information. Unless the directors designated by the
holders of the shares of the Series A Preferred Stock originally issued under the Purchase
Agreement control the Board of Directors of the Company with respect to all actions, for so long as
any shares of the Series A Preferred Stock originally issued under the Purchase Agreement remain
outstanding, the Company will provide to the holders of the Series A Preferred Stock originally
issued under the Purchase Agreement the proposed budget for each fiscal year at least sixty (60)
days prior to the start of such fiscal year and such budget shall be subject to the approval of the
holders of the majority-in-interest of the shares of the Series A Preferred Stock originally issued
under the Purchase Agreement then outstanding. The Company also will provide to the Purchaser all
other information relating to the financial condition, business, prospects, or corporate affairs of
the Company as updated or as the Purchaser may from time to time reasonably request.

     Section 2.4 Inspection, Consultation and Advice. The Company shall permit the
Purchaser and such Persons as it may designate, at the Purchaser’s expense, to visit and inspect
any of the properties of the Company, examine their books and take copies and extracts therefrom,
discuss the affairs, finances and accounts of the Company with their officers, employees and public
accountants (and the Company hereby authorizes said accountants to discuss with the Purchaser and
its designees such affairs, finances and accounts), and consult with and advise the management of
the Company as to the Company’s affairs, finances and accounts, all at reasonable times and upon
reasonable notice.

ARTICLE III

FOUNDER AND COMPANY COVENANTS

     Section 3.1 Right of First Refusal. (a) If a Founder (the “Offering Founder”)
proposes to make or allow a Transfer (as defined herein) to any Person (other than a
Transfer related to an Involuntary Transfer, which is covered by Section 3.2 below), of all
or any part of the securities of the Company now owned or hereafter acquired by him, her or it
(“Option Shares”), then the Offering Founder shall give written notice thereof (the “Notice”) to
the Purchaser. The Notice shall contain an offer to sell the Option Shares to the Purchaser in
accordance with the terms of this Agreement, and shall, as applicable:

	 	(i)	 	State the name and address of the proposed transferee;
	 
	 	(ii)	 	State the amount, type and fair market value of the
consideration to be received for the Option Shares and the other terms of the
proposed Transfer as are necessary to fully understand the terms of the offer
to Transfer; and

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	 	(iii)	 	Include a copy of the executed agreement, if any, between the
Offering Founder and any such third party purchaser covering the Option Shares.

     (b) For 15 calendar days after receipt of the Notice (the “Offer Period”), the Purchaser shall
have the right, but shall not be obligated, to elect to purchase all or any portion of the Option
Shares. This right may be exercised by the Purchaser by giving written notice of exercise to the
Offering Founder before expiration of the Offering Period.

     (c) If the Purchaser elects to purchase all or a portion of the Option Shares, the purchase of
the Option Shares so elected to be purchased shall be consummated within a period of 30 calendar
days following the expiration of the Offering Period. The Offering Founder shall have the right to
Transfer all of the Option Shares not so elected to be purchased by the Purchaser pursuant to this
Section 3.1 to the transferee named in the Notice upon the terms stated therein. Any
Option Shares not so Transferred, and any Option Shares reacquired by the Offering Founder
subsequent to its Transfer, shall be subject to the provisions and conditions of this Agreement.

     (d) The purchase price of the Option Shares purchased by the Purchaser pursuant to the terms
of this Section 3.1 shall be the same price as offered by the proposed transferee as
described in the Notice, or an equivalent amount of cash as reasonably determined by the parties
(unless there is a dispute as to the determination of such amount, in which case it shall be
determined in good faith by a majority of the directors).

     (e) For purposes of this Agreement, “Transfer” and any derivations thereof shall mean a
conveyance, sale, disposition, pledge, hypothecation or other transfer. For purposes of this
Agreement, when “Transfer” or any derivations thereof is used in relation to Company securities, it
shall include the sale, conveyance, disposition, pledge or other transfer of any rights, voting
powers or other interests in such securities.

     (f) Notwithstanding the foregoing, shares of capital stock of the Company beneficially owned
by Founders that are used to settle obligations of the Company or its subsidiaries shall be
excluded from the provisions of this Section 3.1 to the extent that Purchaser is provided
with reasonable written evidence that said shares are being used for such purpose.

     Section 3.2 Option to Purchase on Involuntary Transfers.

     (a) An “Involuntary Transfer” shall mean:

               (i) a Transfer to the transferor Founder’s spouse or former spouse, or heirs of such spouse or
former spouse, in connection with a division of their community or other property upon divorce or
the death of such spouse;

               (ii) a general assignment for the benefit of creditors, or any assignment to a creditor
resulting from the creditor’s foreclosure upon or execution against such shares;

               (iii) a transferor Founder (A) voluntarily commences any proceeding or files any petition
seeking liquidation, reorganization or other relief under any federal, state or

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foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (B)
applies for, or consents to, the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for such Founder or for a substantial part of his assets, (B) files
an answer admitting the material allegations of a petition filed against it in any such proceeding;

               (iv) the entry of a judicial order granting the relief requested by the petitioner in an
involuntary proceeding filed against the transferor Founder; or

               (v) any other transfer by operation of law or by foreclosure of any security interest,
excluding the death of a Founder.

     (b) If an Involuntary Transfer occurs, the Founder subject to such Involuntary Transfer (or
the Person receiving such shares upon an Involuntary Transfer, as applicable) (each the
“Transferring Person”) shall give written notice thereof (the “Transfer Notice”) to the Purchaser.
The Transfer Notice shall specify the Involuntary Transfer and contain an offer to sell the
Transferring Person’s shares (or the portion of the shares subject to the Involuntary Transfer),
referred to as the “Subject Shares”) to the Purchaser in accordance with the terms of this
Agreement.

     (c) The Purchaser shall have the option to acquire the Subject Shares according to procedures
comparable to those contained in Section 3.1, with the notice of exercise of such option
being given to the Transferring Person.

     (d) If the Purchaser elects to purchase all or a portion of the Subject Shares, the purchase
of the Subject Shares so elected to be purchased shall be consummated within a period of 30
calendar days following the expiration of the Offering Period.

     (e) The Transferring Person shall continue to hold the Subject Shares not so elected to be
purchased by the Purchaser pursuant to this Section 3.2.

     (f) The purchase price per share of the Subject Shares elected to be purchased by the
Purchaser pursuant to the terms of this Section 3.2 shall be the average closing price per
share of Company Common Stock, as reported by the exchange or quotation system on which shares of
Company Common Stock are then listed or quoted, for the ten (10) consecutive trading days three
trading days immediately prior to their purchase by the Purchaser; provided, however, if Company
Common Stock is not then listed or quoted, the purchase price shall be determined by mutual
agreement of the Purchaser and the Transferring Person.

     Section 3.3 Lock-Up. Notwithstanding anything herein to the contrary, each Founder
hereby severally agrees not to, directly or indirectly, sell, contract to sell, make any short sale
of, loan, grant any option for the purchase of, mortgage, hypothecate or otherwise transfer or
dispose of any of the securities of the Company now beneficially owned or hereafter acquired by
such Founder until the fifth (5th) anniversary of the date of this Agreement without the
prior written consent of the Purchaser, which consent may be withheld in its sole discretion;
provided, however, that on the third (3rd) anniversary of the date of
this Agreement, one-half of the securities of the Company beneficially owned by such Founder on
such date shall be released

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from the provisions of this Section 3.3; provided further, in the event that
a Founder is terminated otherwise than for “cause” (as defined in that certain Employment Agreement
by and between the Company and such Founder), such Founder shall be entitled to Transfer, publicly
or otherwise, in any given month, an aggregate of ten percent (10%) of the securities beneficially
owned by such Founder (calculated at the date of this Agreement and adjusted for stock splits,
combinations and similar events), subject to applicable securities laws. Notwithstanding the
foregoing, shares of Common Stock beneficially owned by Founders that are issued to Dolman
Technology Capital, Inc. pursuant to the exercise of those certain Warrants, dated as of June 22,
2004, by and between Dolman Technology Capital, Inc. and such Founder, shall be excluded from the
provisions of this Section 3.3; provided that such Warrants shall not be amended, modified
or altered in manner whatsoever without the prior written consent of the Purchaser nor shall a
settlement of such Warrants be effected on any terms different than those contained in such
Warrants.

ARTICLE IV

GENERAL PROVISIONS

     Section 4.1 Entire Agreement. This Agreement constitutes the entire agreement and
understanding of the parties in respect of the subject matter hereof and supersedes all prior
understandings, agreements or representations by or among the parties, written or oral, to the
extent they relate in any way to the subject matter hereof.

     Section 4.2 Successors and Assigns. All of the terms, agreements, covenants,
representations, warranties and conditions of this Agreement are binding upon, and inure to the
benefit of and are enforceable by, the parties and their respective successors, legal
representatives, heirs and permitted assigns.

     Section 4.3. Notices. All notices, requests and other communications provided for or
permitted to be given under this Agreement must be in writing and shall be given by personal
delivery, by certified or registered United States mail (postage prepaid, return receipt
requested), by a nationally recognized overnight delivery service for next day delivery, or by
facsimile transmission, as follows (or to such other address as any party may give in a notice
given in accordance with the provisions hereof):

If to the Purchaser:

Radical Holdings LP

c/o Radical Management LLC

5424 Deloache Avenue

Dallas, Texas 75220

Fax: (214) 696-6310

Attn: President

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With a copy to (which does not constitute notice):

Robert S. Hart

5424 Deloache Avenue

Dallas, Texas 75220

Fax: (214) 696-3380

and

Jenkens & Gilchrist, P.C.

1445 Ross Avenue, Suite 3700

Dallas, Texas 75202

Phone: (214) 855-4500

Fax: (214) 855-4300

Attn: Robert W. Dockery, Esq.

If to the Company:

Immediatek, Inc.

2435 North Central Expressway, Suite 1610

Richardson, Texas 75080

Phone: (972) 852-2876

Fax: (972) 722-0818

Attn: Zach Bair, President

With a copy to (which does not constitute notice):

Vial, Hamilton, Koch & Knox, LLP

1700 Pacific Avenue, Suite 2800

Dallas, Texas 75201

Phone: (214) 712-4441

Fax: (214) 712-4402

Attn: Craig G. Ongley, Esq.

If to the Founders:

Zach Bair

2435 North Central Expressway, Suite 1200

Richardson, Texas 75080

Fax: (972) 722-0818

Paul Marin

2435 North Central Expressway, Suite 1200

Richardson, Texas 75080

Fax: (972) 722-0818

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With a copy to (which does not constitute notice):

Vial, Hamilton, Koch & Knox, LLP

1700 Pacific Avenue, Suite 2800

Dallas, Texas 75201

Phone: (214) 712-4441

Fax: (214) 712-4402

Attn: Craig G. Ongley, Esq.

All notices, requests or other communications will be effective and deemed given only as follows:
(i) if given by personal delivery, upon such personal delivery, (ii) if sent by certified or
registered mail, on the fifth business day after being deposited in the United States mail, (iii)
if sent for next day delivery by overnight delivery service, on the date of delivery as confirmed
by written confirmation of delivery, (iv) if sent by facsimile, upon the transmitter’s confirmation
of receipt of such facsimile transmission, except that if such confirmation is received after 5:00
p.m. (in the recipient’s time zone) on a business day, or is received on a day that is not a
business day, then such notice, request or communication will not be deemed effective or given
until the next succeeding business day. Notices, requests and other communications sent in any
other manner, including by electronic mail, will not be effective.

     Section 4.4 Governing Law. This Agreement will be governed by, and construed in
accordance with, the laws of the State of Texas, without giving effect to any choice of law
principles.

     Section 4.5 Submission to Jurisdiction; Waiver of Jury Trial.

     (a) Submission to Jurisdiction. Any action, suit or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this Agreement shall
only be brought in any federal court located in Dallas County, Texas or any Texas state court
located in Dallas County, Texas, and each party consents to the exclusive jurisdiction and venue of
such courts (and of the appropriate appellate courts therefrom) in any such action, suit or
proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it
may now or hereafter have to the laying of the venue of any such action, suit or proceeding in any
such court or that any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum. Process in any such action, suit or proceeding may be served on any
party anywhere in the world, whether within or without the jurisdiction of any such court. Without
limiting the foregoing, service of process on such party as provided in Section 4.3 shall
be deemed effective service of process on such party.

     (b) Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES THAT ANY DISPUTE THAT MAY ARISE OUT
OF OR RELATING TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE SUCH PARTY HEREBY EXPRESSLY WAIVES ITS RIGHT TO JURY TRIAL OF ANY DISPUTE BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY OTHER AGREEMENTS RELATING HERETO OR ANY DEALINGS AMONG THEM
RELATING TO THE MATTERS CONTEMPLATED HEREIN. THE SCOPE OF THIS WAIVER IS INTENDED TO ENCOMPASS ANY
AND ALL ACTIONS, SUITS AND PROCEEDINGS

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THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT AND CONTEMPLATED HEREBY, INCLUDING CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH
PARTY HEREBY REPRESENTS THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT IN THE EVENT OF ANY ACTION,
SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) SUCH PARTY UNDERSTANDS, AND WITH THE
ADVICE OF COUNSEL HAS CONSIDERED, THE IMPLICATIONS OF THIS WAIVER, (iii) SUCH PARTY MAKES THIS
WAIVER VOLUNTARILY AND (iv) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND REPRESENTATIONS IN THIS SECTION 4.5(b).

     Section 4.6 Headings. The article and section headings contained in this Agreement
are inserted for convenience only and will not affect in any way the meaning or interpretation of
this Agreement.

     Section 4.7 Amendments. This Agreement may be amended only by a written instrument
signed by the Company, the Purchaser and the Holders of at least a majority of the Registrable
Securities, except for Article III, which may be amended only by a written instrument
signed by the Company, the Purchaser and the Founders.

     Section 4.8 Extensions; Waivers. Any party may, for itself only, (a) extend the time
for the performance of any of the obligations of any other party under this Agreement, (b) waive
any inaccuracies in the representations and warranties of any other party contained herein or in
any document delivered pursuant hereto and (c) waive compliance with any of the agreements or
conditions for the benefit of such party contained herein. Any such extension or waiver will be
valid only if set forth in a writing signed by the party to be bound thereby. No waiver by any
party of any default, misrepresentation or breach of warranty or covenant hereunder, whether
intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation
or breach of warranty or covenant hereunder or affect in any way any rights arising because of any
prior or subsequent such occurrence. Neither the failure nor any delay on the part of any party to
exercise any right or remedy under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right or remedy preclude any other or further exercise of the
same or of any other right or remedy.

     Section 4.9 Severability. The provisions of this Agreement will be deemed severable
and the invalidity or unenforceability of any provision will not affect the validity or
enforceability of the other provisions hereof; provided that if any provision of this Agreement, as
applied to any party or to any circumstance, is judicially determined not to be enforceable in
accordance with its terms, the parties agree that the court judicially making such determination
may modify the provision in a manner consistent with its objectives such that it is enforceable,
and/or to delete specific words or phrases, and in its modified form, such provision will then be
enforceable and will be enforced.

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     Section 4.10 Counterparts; Effectiveness. This Agreement may be executed in two or
more counterparts, each of which will be deemed an original but all of which together will
constitute one and the same instrument. This Agreement will become effective when one or more
counterparts have been signed by each of the parties and delivered to the other parties. For
purposes of determining whether a party has signed this Agreement or any document contemplated
hereby or any amendment or waiver hereof, only a handwritten original signature on a paper document
or a facsimile copy of such a handwritten original signature shall constitute a signature,
notwithstanding any law relating to or enabling the creation, execution or delivery of any contract
or signature by electronic means.

     Section 4.11 Specific Performance; Remedies. Each party acknowledges and agrees that
the other parties would be damaged irreparably if any provision of this Agreement were not
performed in accordance with its specific terms or were otherwise breached. Accordingly, the
parties will be entitled to an injunction or injunctions to prevent breaches of the provisions of
this Agreement and to enforce specifically this Agreement and its provisions in any action or
proceeding instituted in any court of the United States or any state thereof having jurisdiction
over the parties and the matter, in addition to any other remedy to which they may be entitled, at
law or in equity. Except as expressly provided herein, the rights, obligations and remedies
created by this Agreement are cumulative and in addition to any other rights, obligations or
remedies otherwise available at law or in equity. Except as expressly provided herein, nothing
herein will be considered an election of remedies.

     Section 4.12 Construction. This Agreement has been freely and fairly negotiated
among the parties. If an ambiguity or question of intent or interpretation arises, this Agreement
will be construed as if drafted jointly by the parties and no presumption or burden of proof will
arise favoring or disfavoring any party because of the authorship of any provision of this
Agreement. Any reference to any law will be deemed to refer to such law as in effect on the date
hereof and all rules and regulations promulgated thereunder, unless the context requires otherwise.
The words “include,” “includes,” and “including” will be deemed to be followed by “without
limitation.” Pronouns in masculine, feminine and neuter genders will be construed to include any
other gender, and words in the singular form will be construed to include the plural and vice
versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,”
“hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and not to
any particular subdivision unless expressly so limited. The parties intend that each
representation, warranty and covenant contained herein will have independent significance. If any
party has breached any covenant contained herein in any respect, the fact that there exists another
covenant relating to the same subject matter (regardless of the relative levels of specificity)
which the party has not breached will not detract from or mitigate the fact that the party is in
breach of the first covenant.

SIGNATURE PAGE FOLLOWS

Investor’s Rights Agreement (ITEK) v4

26

 

     IN WITNESS WHEREOF, the parties hereto have executed this Investor’s Rights Agreement as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	COMPANY:	 	IMMEDIATEK, INC.
	 	 	a Nevada corporation
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	/s/ ZACH BAIR
	 	 	 	 	 
	 	 	Name:	 	 	 	Zach Bair
	 	 	Title:	 	 	 	President & Chief Executive Officer
	 
	 	 	 	 	 	 	 	 
	PURCHASER:	 	RADICAL HOLDINGS LP
	 	 	a Texas limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	Radical Management LLC,
	 	 	 	 	 	 	a Texas limited liability company,
	 	 	 	 	 	 	its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	  /s/ MARK CUBAN
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Mark Cuban
	 

	 	 	 	 	 	Title:
	 	President
	 
	 	 	 	 	 	 	 	 
	FOUNDERS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	  /s/ ZACH BAIR
	 	 	 
	 	 	Zach Bair
	 
	 	 	 	 	 	 	 	 
	 	 	  /s/ PAUL MARIN
	 	 	 
	 	 	Paul Marin

Investor’s Rights Agreement (ITEK) v4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]