Document:

Exhibit 10.2

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (as may be amended from time to time, this “Agreement”) is entered into as of [__], 2015, by and among GAIN Capital Holdings, Inc., a Delaware corporation (the “Company”), City Index Group Limited (“City”), Incap Gaming B.V. (“INCAP”) and each other person identified on Schedule A hereto (each, an “Other Investor” and, together with the Seller (defined below), the “Investors”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Share Purchase Agreement dated as of October 31, 2014 (the “Share Purchase Agreement”) by and among the Company, City and INCAP, City was issued by the Company 5,319,149 Shares (as defined below) (such Shares, the “Consideration Shares”) and $60,000,000 in aggregate principal amount of 4.125% convertible notes (the “Convertible Notes”);

 

WHEREAS, promptly following the Closing (as defined below), City intends to distribute (the “Distribution”) the Consideration Shares and the Convertible Notes to INCAP and Sun Luxco I, Sarl (“Sun Luxco”);

 

WHEREAS, following the Distribution, Sun Luxco will further distribute the Consideration Shares and Convertible Notes received by it in the Distribution to Francisco Partners II, L.P. (“FP”) and INCAP will create a wholly-owned subsidiary to be incorporated in Delaware (“INCAP Sub”) and contribute the Consideration Shares and Convertible Notes received by it in the Distribution to INCAP Sub (the “Contribution”);

 

WHEREAS, the Other Investors currently own Shares; and

 

WHEREAS, the Company wishes to grant certain rights to Seller and the Other Investors with respect to the Registrable Securities (as defined below) held by them as set forth herein.

 

NOW, THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and conditions set forth in this Agreement, and for the good and valuable consideration, the parties, intending to be legally bound, mutually agree as follows:

 

ARTICLE 1

General

 

Section 1.01.  Definitions.  As used in this Agreement the following terms shall have the following respective meanings:

 

“Affiliate” means, with respect to any person, any other person directly or indirectly controlling, controlled by or under common control with such person; provided that no securityholder of the Company shall be deemed an Affiliate of any other

 

  

  

  

 

securityholder solely by reason of any investment in the Company.  For the purpose of this definition, the term “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as used with respect to any person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting securities, by contract or otherwise.

 

“Business Day” means any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is authorized or required by law or executive order to close or be closed.

 

“Closing” has the meaning ascribed thereto in the Share Purchase Agreement.

 

“Closing Date” has the meaning ascribed thereto in the Share Purchase Agreement.

 

“Common Stock” means the common stock of the Company, par value of $0.00001 per share, and any stock into which such common stock of the Company may hereafter be converted upon a reclassification of such common stock in accordance with law.

 

“Convertible Notes Indenture” means the indenture dated on or about the Closing Date pursuant to which the Convertible Notes are issued.

 

“Edison Entities” means Edison Venture Fund IV SBIC, L.P., Edison Partners IV SBIC, LLC, and any other investment fund vehicles or entities of which any of the foregoing entities are affiliates.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

 

“Holder” means (a) any Investor owning of record Registrable Securities and (b) any person owning of record Registrable Securities who succeeds to rights hereunder pursuant to ‎Section 2.09.

 

“Register,” “registered,” and “registration” refer to a registration effected by preparing and filing with the SEC a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement by the SEC.

 

“Registrable Securities” means (a) any Shares; (b) the Convertible Notes; and (c) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement of, such above-described securities, in each case held by a Holder.  Notwithstanding the foregoing, Registrable Securities shall cease to include any securities that have been sold by a person to the public pursuant to a registration statement in compliance with the Securities

 

  

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Act or pursuant to Rule 144 or sold in a private transaction in which the transferor’s rights under ‎Article 2 of this Agreement are not assigned in accordance with ‎Section 2.09.

 

“Registrable Securities then outstanding” shall be the number of shares of Common Stock determined by calculating the total number of shares of Common Stock (a) that are Registrable Securities and then issued and outstanding or (b) are issuable upon conversion of the Convertible Notes but only to the extent that such Convertible Notes are Registrable Securities; provided that with respect to the Convertible Notes, the number of shares of Common Stock issuable upon conversion of the Convertible Notes shall be the maximum number of shares of Common Stock into which the Convertible Notes are convertible into (1) assuming that the Company elects Physical Settlement (as such term is defined in the Convertible Indenture) to settle all conversions of the Convertible Notes, and (2) without regard to whether there are conditions that would prevent the conversion of the Convertible Notes at such time.

 

“Registration Expenses” shall mean all expenses incurred by the Company in complying with Sections ‎2.01, ‎2.02, ‎2.03 and ‎2.05 hereof, including, without limitation, all registration, qualification, exchange and filing fees, printing expenses, fees and disbursements of counsel for the Company, reasonable fees and disbursements of a single special counsel chosen by the Holders of a majority of the Registrable Securities included in any such registration, blue sky fees, custodian fees and expenses and fees and expenses of the Company’s legal counsel, accountants and other advisors, including the expense of any special audits incident to or required by any such registration and excluding Selling Expenses.

 

“Rule 144” shall mean Rule 144 promulgated under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated under the Securities Act.

 

“SEC” or “Commission” means the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

“Securities Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

 

“Seller” means (i) prior to the Distribution and Contribution, City and (ii) following the Distribution and Contribution and upon execution and delivery of a counterpart hereto, INCAP Sub.

 

“Selling Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable Securities.

 

“Shares” means the shares of Common Stock issued by the Company to Seller under the Share Purchase Agreement, upon the conversion of Convertible Notes or upon the exercise of any director stock options that may be deemed to be beneficially owned

 

  

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by any of the VantagePoint Entities or any of Edison Entities, or held by the other Holders on the date hereof.

 

“Shelf Registration Statement” means a Registration Statement of the Company filed with the SEC on Form S-3 (or any successor form under the Securities Act) for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act (or any similar rule that may be adopted by the SEC) covering the Registrable Securities.

 

“Stockholders’ Agreement” means the Stockholders’ Agreement dated as of October 31, 2014 among the Company, Seller and the other parties listed on the signature pages thereto.

 

“VantagePoint Entities” means VantagePoint Venture Partners IV (Q), L.P., VantagePoint Venture Partners IV, L.P., VantagePoint Venture Partners IV Principals Fund, L.P., VP New York Venture Partners, L.P., and any investment fund vehicles or entities of which any of the foregoing are affiliates.

 

ARTICLE 2

Registration

 

Section 2.01.  Demand Registration.  (a) Subject to the conditions of this ‎Section 2.01 and if there is then no currently effective Shelf Registration Statement on file with the SEC covering all of the Registrable Securities, if the Company receives a written request from (x) Seller, (y) an Other Investor or (z) Holders holding at least 30% of the Registrable Securities then outstanding (as applicable, the “Initiating Holders”) that the Company file a registration statement under the Securities Act covering the registration of all or a part of the Registrable Securities held by such Holders, then the Company shall:

 

(i)      within 15 days of the receipt thereof, give notice of such request to all Holders (other than the Initiating Holders), and use its reasonable best efforts to effect, as soon as practicable, the registration of all Registrable Securities that the Initiating Holders have requested to be registered; and

 

(ii)     as soon as practicable, use its reasonable best efforts to effect such registration, qualification or compliance (including, without limitation, the execution of an undertaking to file post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws, and appropriate compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holders joining in such request as are specified in a written request received by the Company within 15 days after the date the Company mails such written notice. The Company may include in such registration any securities, for its own account or for the account

 

  

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of a security holder or holders, subject to the limitations set forth in ‎Section 2.01(b) below.

 

(b)      If the Initiating Holders intend to distribute the Registrable Securities by means of an underwriting, they shall so advise the Company as a part of their demand pursuant to this ‎Section 2.01 and the Company shall include such information in the notice referred to in this ‎Section 2.01. In such event, the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon participation in such underwriting. The underwriter or underwriters for such offering shall be determined by the Company in consultation with the Initiating Holders. Notwithstanding any other provision of this ‎Section 2.01, if the underwriter advises the Company that the number of securities requested to be included in such underwriting and registration exceeds the number which can be sold in such offering without it being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, then the Company shall so advise all participating Holders, and the number of Shares or other Registrable Securities that may be included in the underwriting and registration shall be allocated pro rata to the participating Holders based on the number of Registrable Securities then outstanding held by them; provided, however, that in the case of an underwriting and registration that is being made pursuant to a demand or written request for registration by an Other Investor under this ‎Section 2.01 or pursuant to clause (z) of ‎Section 2.01(a) (such demand, an “Other Investor Demand”), the number of securities assigned or allocated to the VantagePoint Entities shall in no case be lower than the lesser of thirty percent (30%) of the total number of securities underwritten and the number of Registrable Securities then requested by the VantagePoint Entities to be included in such underwriting and registration; provided, further, that the number of Shares or other Registrable Securities to be included in any underwriting and registration pursuant to this ‎Section 2.01 shall not be reduced unless all other securities of the Company and all securities that are not Registrable Securities are first entirely excluded from the underwriting and registration.

 

(c)      The Company shall not be required to effect a registration pursuant to this ‎Section 2.01:

 

(i)      for Seller, prior to the second anniversary of the date hereof;

 

(ii)     after the Company has effected four (4) registrations pursuant to this ‎Section 2.01 and such registrations have been declared or ordered effective by the SEC and securities have been sold pursuant thereto; provided that (A) the Other Investors and their respective permitted assignees hereunder, taken together, shall be entitled to make no more than two (2) such demands for registration and (B) the Seller shall be entitled to make no more than two (2) such demands or written requests for registration (such demand, a “Seller Demand”), in each case pursuant to this ‎Section 2.01; provided further that a registration shall not count as one of the permitted demands until it has become effective and the Initiating Holder is able to include at least 60% of the Registrable Securities requested by such Initiating Holder to be included in such Seller Demand;

 

  

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(iii)    during the period starting with the date of filing of, and ending on the date six months following the effective date of, a registration statement pertaining to any underwritten public offering of securities of the Company made pursuant to this ‎Section 2.01 or Section ‎2.02;

 

(iv)    if within thirty (30) days of receipt of a written request from Initiating Holders pursuant to this ‎Section 2.01, the Company gives notice to the Holders of the Company’s intention to make an underwritten public offering of securities of the Company within ninety (90) days;

 

(v)     if the Company shall furnish to the Initiating Holders a certificate signed by the Chief Executive Officer of the Company stating that in the good faith judgment of the Company such registration statement would reasonably be expected to be materially detrimental to the Company because the sale of Registrable Securities pursuant to such registration statement would require disclosure of non-public material information not otherwise required to be disclosed under applicable law and the Company has a bona fide business purpose for preserving the confidentiality of such information, the Company shall have the right to defer the filing of the applicable registration statement for a period of not more than one hundred eighty (180) days after receipt of the request of the Initiating Holders; provided that such right to delay a request shall be exercised by the Company not more than once in any twelve (12) month period; provided further that in such event, the Initiating Holders initially requesting such registration statement shall be entitled to withdraw such request, and if such request is withdrawn, such demand registration shall not count as one of the permitted demand registrations hereunder and the Company shall pay all Registration Expenses in connection with such registration; or

 

(vi)    if the Initiating Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration statement, propose to sell Registrable Securities and such other securities (if any) at an anticipated aggregate price to the public (after deduction for underwriter’s discounts and expenses related to the issuance) of less than $20,000,000.

 

Section 2.02.  Piggyback Registrations.  The Company shall notify all Holders at least thirty (30) days prior to the filing of any registration statement under the Securities Act for a public offering of securities of the Company (including, but not limited to, registration statements relating to secondary offerings of securities of the Company, but excluding (i) any registration statement to be filed pursuant to ‎Section 2.03 ‎and (ii) any registration statement relating to employee benefit plans or corporate reorganizations or other transactions under Rule 145 of the Securities Act) and will afford each such Holder an opportunity to include in such registration statement all or part of the Registrable Securities held by such Holder. Each Holder desiring to include Registrable Securities in any such registration statement shall notify the Company within fifteen (15) days after the notice from the Company. Such notice shall state the intended method of disposition of the Registrable Securities by such Holder. If a Holder decides not to include all of its Registrable Securities in any registration statement filed by the

 

  

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Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company, all upon the terms and conditions set forth herein.

 

(a)      Underwriting.  If the registration statement under which the Company gives notice under this ‎Section 2.02 is for an underwritten offering, the Company shall so advise the Holders. In such event, the right of any Holder to include Registrable Securities in the registration statement pursuant to this ‎Section 2.02 shall be conditioned upon the Holder’s participation in the underwriting and entry into an underwriting agreement in customary form with an underwriter or underwriters selected by the Company (after consultation with the Holders participating in such underwritten offering) and on terms as agreed by the Company and such underwriter or underwriters.  Notwithstanding any other provision of the Agreement, if the underwriter determines in good faith that the number of securities requested to be included in such underwriting and registration exceeds the number which can be sold in such offering without it being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, the number of securities that may be included in the underwriting shall be allocated, first, to the Company; second, to the Holders pro rata based on the total number of Registrable Securities then outstanding held by the Holders; and third (to the extent of availability), to any other stockholder of the Company (other than a Holder).

 

(b)      Right to Terminate Registration.  The Company shall have the right to terminate or withdraw any registration initiated by it under this ‎Section 2.02 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The Registration Expenses of such withdrawn registration shall be borne by the Company in accordance with ‎Section 2.04 hereof.

 

Section 2.03.  Shelf Registration. (a) The Company shall use reasonable best efforts to cause to become effective under the Securities Act within six (6) months after the Closing, a Shelf Registration Statement relating to the offer and sale of all Registrable Securities by the Holders from time to time in accordance with the methods of distribution elected by such Holders and set forth in the Shelf Registration Statement.  If, at any time, the Company does not qualify to file a Shelf Registration Statement under the Securities Act, the provisions of this ‎Section 2.03 shall not apply, and the provisions of ‎Section 2.01 shall apply instead.

 

(b)      Continued Effectiveness.  The Company shall use its reasonable best efforts to keep such Shelf Registration Statement continuously effective under the Securities Act in order to permit the prospectus forming a part thereof to be usable by Holders until the earlier of (i) three (3) years following the effectiveness under the Securities Act of the Shelf Registration Statement and (ii) the date on which each of the Holders is permitted to sell all of its Registrable Securities without registration pursuant to Rule 144 without limitation or restriction under any of the requirements of Rule 144  In the event that the Company does not have a Shelf Registration Statement effective after the expiration of the three-year period described in clause (i) above, the rights of the Other Investors as in effect immediately prior to the date hereof pursuant to the Investor Rights Agreement

 

  

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(defined below) with respect to S-3 filings (and the rights ancillary thereto) shall be reinstated and remain in effect until the termination of this Agreement in accordance with its terms.

 

(c)      Suspension of Registration.  Prior to the sale or distribution of any Registrable Securities pursuant to a Shelf Registration Statement, each Holder shall give at least two (2) Business Days prior written notice thereof to the Company (a “Sale Notice”) and no Holder shall sell or distribute any Registrable Securities unless it has timely provided such Sale Notice and, subject to the Shelf Suspension described below, until the expiration of such 2-Business Day period.  The Holders shall not deliver a Sale Notice and shall not sell or distribute Registrable Securities more than five times in any calendar quarter.  If in response to a Sale Notice, the Company shall provide to the Holder a certificate signed by the Chief Executive Officer of the Company stating that in the good faith judgment of the Company such sale or distribution would require disclosure of non-public material information not otherwise required to be disclosed under applicable law and the Company has a bona fide business purpose for preserving the confidentiality of such information (the “Restriction”), then the Company may, by written notice thereof to the Holders requesting such sale or distribution (a “Suspension Notice”), suspend use of the Shelf Registration Statement by the Holders until the expiration of the Restriction (a “Shelf Suspension”).  In the case of a Shelf Suspension, the Holders agree to suspend use of the applicable prospectus and any issuer free writing prospectuses in connection with any sale or purchase of, or offer to sell or purchase, Registrable Securities, upon receipt of the Suspension Notice referred to above.  The Company shall immediately notify the Holders upon the termination of any Shelf Suspension and either confirm that the Shelf Registration can be used or supplement or make amendments to the Shelf Registration Statement to the extent required by the registration form used by the Company for the Shelf Registration or by the Securities Act or the rules or regulations promulgated thereunder and promptly notify the Holders thereof. The Company agrees to not deliver a Suspension Notice to any Holder or otherwise inform such Holder of a Restriction unless and until such Holder delivers a Sale Notice to the Company.

 

(d)      Registrations effected pursuant to this ‎Section 2.03 shall not be counted as demands for registration or registrations effected pursuant to ‎Section 2.01.  Notwithstanding the foregoing, in connection with an underwritten public offering by the Company of Common Stock, the Company shall not be obligated to permit any sales or distributions pursuant to this ‎Section 2.03 during the period starting on the date requested by the managing underwriters (which shall be no earlier than ten (10) days prior to the anticipated “pricing” date for such underwritten offering) and continuing to the date that is sixty (60) days following the date of the final prospectus for such underwritten offering; provided that the Company shall not exercise its right to block such sales or distributions more than twice in any calendar year.

 

Section 2.04.  Expenses of Registration.  Except as specifically provided below in this ‎Section 2.04, all Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to Sections ‎2.01, ‎2.02 or ‎2.03 herein shall be borne by the Company. All Selling Expenses incurred in connection with any registrations

 

  

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hereunder, shall be borne by the selling party, either the Company or the Holders selling the securities, as applicable. The Company shall not, however, be required to pay for Registration Expenses regarding any registration proceeding begun pursuant to ‎Section 2.01, the request of which has been subsequently withdrawn by the Initiating Holders (and such Initiating Holders hereby indemnify the Company (in the case there is more than one Initiating Holder, on a several basis in proportion to the number of shares included in such registration) against all such expenses) unless (a) the withdrawal is based upon material adverse information concerning the Company of which the Initiating Holders were not aware at the time of such request or (b) (i) in the case of a Seller Demand, the Seller and (ii) in the case of an Other Investor Demand, Holders of a majority of the Registrable Securities then outstanding held by the Other Investors and their respective permitted assignees hereunder, as applicable, agree to forfeit its or their (as applicable) right to one requested registration pursuant to ‎Section 2.01, in which event such right shall be forfeited by all Holders). If the Holders are required to pay the Registration Expenses, as provided above, such expenses shall be borne by the Holders requesting such registration in proportion to the number of shares included in such registration.

 

Section 2.05.  Obligations of the Company.  Whenever required to register any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

(a)      Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use all reasonable efforts to cause such registration statement to become effective, and, keep such registration statement effective until the Holder or Holders have completed the distribution related thereto but, other than with respect to a Shelf Registration Statement, in no event for more than one hundred and twenty (120) days after the date of such effectiveness (extended up to 180 days for each trading day on which the Company’s Common Stock price is less than 75% of the price of the Common Stock on the date of such effectiveness).

 

(b)      Notify each holder of Registrable Securities of (i) the issuance by the SEC of any stop order suspending the effectiveness of any registration statement or the initiation of any proceedings for that purpose, (ii) the receipt by the Company or its counsel of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and (iii) the effectiveness of each registration statement filed hereunder.  In the event of the issuance of any stop order suspending the effectiveness of a registration statement, or the issuance of any order suspending or preventing the use of any related prospectus or suspending the qualification of any Common Stock included in such registration statement for sale in any jurisdiction, the Company will use its reasonable best efforts to promptly obtain the withdrawal of such order.

 

(c)      Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to keep such registration effective and comply with the

 

  

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provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for the period set forth in paragraph ‎(a) above.

 

(d)      Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them.

 

(e)      Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

 

(f)      In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering.

 

(g)      Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing.  The Company shall use its reasonable best efforts to prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading

 

(h)      Use its reasonable best efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and (ii) a letter dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering addressed to the underwriters.

 

(i)      Otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC.

 

In addition to the other applicable requirements of this ‎Section 2.05, the Company will have a broad plan of distribution and will facilitate underwritten block trades, though unless the Company agrees otherwise, the Company’s facilitation will be limited to participating in a customary telephonic management due diligence session, providing the

 

  

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underwriters and underwriters counsel with customary access to the Company’s books and records, subject to customary confidentiality undertakings, requesting the Company’s lawyers to provide opinions in customary form and requesting the Company’s accountants to provide comfort letters in customary form.

 

Section 2.06.  Furnishing Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section ‎2.01, ‎2.02 or ‎2.03 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required under rules and regulations promulgated under the Securities Act to effect the registration of their Registrable Securities.

 

Section 2.07.  Indemnification.  In the event any Registrable Securities are included in a registration statement under Sections ‎2.01, ‎2.02 or ‎2.03:

 

(a)      To the extent permitted by law, the Company will indemnify and hold harmless each Holder and the partners, officers, directors and stockholders of each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively, a “Violation”) by the Company: (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law in connection with the offering covered by such registration statement; and the Company will pay as incurred to each such Holder, partner, officer, director, stockholder, underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this ‎Section 2.07(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by such Holder, partner, officer, director, stockholder, underwriter or controlling person of such Holder.

 

(b)      To the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration,

 

  

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qualification or compliance is being effected, severally and not jointly, indemnify and hold harmless the Company, each of its directors, its officers and each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter and any other Holder selling securities under such registration statement or any of such other Holder’s partners, directors, officers or stockholders or any person who controls such Holder, against any losses, claims, damages or liabilities to which the Company or any such person may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder under an instrument duly executed by such Holder and stated to be specifically for use in connection with such registration; and each such Holder will pay as incurred any legal or other expenses reasonably incurred by the Company or any such person in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially determined that there was such a Violation; provided, however, that the indemnity agreement contained in this ‎Section 2.07(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, further, that in no event shall any indemnity and payment obligation under this ‎Section 2.07 exceed the net proceeds (after deducting commissions, taxes and other expenses) from the offering received by such Holder.

 

(c)      Promptly after receipt by an indemnified party under this ‎Section 2.07 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this ‎Section 2.07, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this ‎Section 2.07, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this ‎Section 2.07.

 

(d)      If the indemnification provided for in this ‎Section 2.07 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a

 

  

12

  

 

result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided that in no event shall any contribution by a Holder hereunder exceed the net proceeds (after deducting commissions, taxes and other expenses) from the offering received by such Holder.

 

(e)      The obligations of the Company and Holders under this ‎Section 2.07 shall survive completion of any offering of Registrable Securities in a registration statement and the termination of this Agreement. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

Section 2.08.  Termination of Registration Rights.  All registration rights granted under this ‎Article 2 shall terminate and be of no further force and effect, with respect to (a) INCAP Sub on the earliest to occur of (i) the date all Registrable Securities held by or issuable to INCAP Sub may be sold (x) free of any resale restrictions under the Stockholders’ Agreement (as defined in the Share Purchase Agreement) and (y) under Rule 144 without limitation or restriction under any of the requirements of Rule 144, (ii) the fifth anniversary of the date hereof and (iii) the date on which Seller and the Affiliates of Seller, collectively, hold less than 10% of the Common Stock then outstanding (including Common Stock issuable upon the conversion of the Convertible Note (assuming that the Company elects Physical Settlement (as such term is defined in the Convertible Notes Indenture) to settle all conversions of the Convertible Notes, and without regard to whether there are conditions that would prevent the conversion of the Convertible Notes at such time)) and (b) each other Holder, on the date on which all Registrable Securities held by or issuable to such Holder may be sold under Rule 144 without limitation or restriction under any of the requirements of Rule 144.

 

Section 2.09.  Assignment of Registration Rights.  The rights to cause the Company to register Registrable Securities pursuant to this ‎Article 2 may be assigned by any Holder (including the general partner of any of the VantagePoint Entities and any of the Edison Entities but excluding Seller) to a transferee or assignee of Registrable Securities which (i) is a subsidiary, parent, general partner, limited partner, member, shareholder, or Affiliate of such Holder, (ii) is a Holder’s immediate family member or a trust for the benefit of an individual Holder or immediate family members of such Holder, (iii) acquires at least fifty percent (50%) of the shares of Registrable Securities then held by the transferring Holder, or (iv) acquires at least twenty percent (20%) of the Registrable Securities then outstanding (as adjusted for stock splits and combinations);

 

  

13

  

 

provided, however, (A) the transferor shall, within ten (10) business days after such transfer or assignment, furnish to the Company written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned and (B) such transferee or assignee shall agree to be subject to all provisions of this Agreement  as a “Holder” by execution and delivery of a counterpart signature page hereto.

 

Section 2.10.  Limitation on Subsequent Registration Rights.  As of the effective time of this Agreement, the Company represents and warrants that it is not a party to, or otherwise subject to, any other agreement granting registration rights with respect to any securities of the Company.  After the date of this Agreement, the Company shall not, without the prior written consent of each Holder holding (together with its Affiliates) at least ten percent (10%) of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company that would grant such holder registration rights senior to those granted to the Holders hereunder.

 

Section 2.11.  Rule 144 Reporting.  The Company shall use commercially reasonable efforts to satisfy the condition contained in Rule 144 under the Securities Act with respect to current public information and any other conditions to make such Rule available to the Holders for the sale of Registrable Securities, including filing with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act.  In addition, the Company shall furnish to each Holder so long as such Holder owns Registrable Securities, promptly upon request, a written statement by the Company as to its compliance with the reporting requirements of Rule 144.

 

ARTICLE 3

MISCELLANEOUS

 

Section 3.01.  Governing Law.  This Agreement shall be governed by and construed under the laws of the State of Delaware, without regard to the conflicts of laws rules of such state.

 

Section 3.02.  Jurisdiction.  The parties hereby agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the District of Delaware or any Delaware State court, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of Delaware, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be

 

  

14

  

 

served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party agrees that service of process on such party as provided in ‎‎Section 3.11 shall be deemed effective service of process on such party.

 

Section 3.03.  WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 3.04.  Survival.  The representations, warranties, covenants, and agreements made herein shall survive any investigation made by any Investor and the closing of the transactions contemplated hereby. All statements as to factual matters contained in any certificate or other instrument delivered by or on behalf of the Company pursuant hereto in connection with the transactions contemplated hereby shall be deemed to be representations and warranties by the Company hereunder solely as of the date of such certificate or instrument.

 

Section 3.05.  Successors and Assigns.  (a) Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors and permitted assigns, heirs, executors, and administrators of the parties hereto and shall inure to the benefit of and be enforceable by each person who shall be a permitted assignee of a Holder in accordance with ‎Section 2.09 and a holder of Registrable Securities from time to time.  Immediately after the Distribution and the Contribution, INCAP Sub shall automatically become the “Seller” hereunder and succeed to all of the rights and obligations of City in its capacity as Seller under this Agreement; provided that INCAP Sub executes and delivers a counterpart hereto.

 

Section 3.06.  Effectiveness.  This Agreement shall not become effective until (a)execution and delivery of a counterpart hereto by each of the Company, City and each of the Other Investors and (b) the occurrence of the Closing.  For the avoidance of doubt, the Amended and Restated Investor Rights Agreement dated as of January 1, 2008 by and among the Company, each Other Investor and the other parties thereto, as amended (the “Investor Rights Agreement”), shall remain in full force and effect until the effectiveness of this Agreement in accordance with this ‎Section 3.06.

 

Section 3.07.  Entire Agreement.  This Agreement and the Schedule hereto, constitute the full and entire understanding and agreement among the parties with regard to the subject matter hereof.

 

Section 3.08.  Severability.  In case any provision of the Agreement shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 3.09.  Amendment and Waiver.  Except as otherwise expressly provided herein, this Agreement may be amended or modified and the observance thereof may be waived (either generally or in a particular instance and either retroactively or

 

  

15

  

 

prospectively), only with the written consent of the Company and each Holder holding (together with its Affiliates) at least ten percent (10%) of the Registrable Securities then outstanding; provided that no such amendment or waiver shall affect any Holder in a more adverse or disproportionate manner than the other Holders, without obtaining the consent of such adversely and disproportionately affected Holder.  Any amendment or waiver effected in accordance with this ‎Section 3.09 shall be binding upon each Holder and the Company.

 

Section 3.10.  Delays or Omissions.  It is agreed that no delay or omission to exercise any right, power, or remedy accruing to any party hereto, upon any breach, default or noncompliance of any other party hereto under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring.

 

Section 3.11.  Notices and Consents.  All notices, requests and other communications to any party hereunder shall be in writing (including facsimile transmission and electronic mail (“e-mail”) transmission, so long as a receipt of such e-mail is requested and received) and shall be given to the party to be notified at the address as set forth on the signature pages hereof or Exhibit A hereto or at such other address as such party may hereafter specify for the purpose by notice to the other parties hereto.  All notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt.  Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.

 

Section 3.12.  Titles and Subtitles.  The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

 

Section 3.13.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

  

16

  

IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of the date set forth in the first paragraph hereof.

 

	
GAIN CAPITAL HOLDINGS, INC.

	 
	 	 	 	 
	 	 	 	 
	
By:

	  	 
	  	
Name:

	 	 
	  	
Title:

	 	 
	  	  	 	 

 

 

[Signature Page to Registration Rights Agreement]

 

  

 

  

 

	
CITI INDEX GROUP LIMITED

	 
	 	 	 	 
	 	 	 	 
	
By:

	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

	
INCAP GAMING B.V.

	 
	 	 	 	 
	 	 	 	 
	
By:

	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

[Signature Page to Registration Rights Agreement]

 

  

 

  

 

 

 

	

VANTAGEPOINT VENTURES PARTNERS IV (Q), L.P

	 	 	 	 
	
By:

	
VantagePoint Venture Associates IV, L.L.C.,

its General Partner

	 
	 	 	 
	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

 

 

 

 

	

VANTAGEPOINT VENTURE PARTNERS IV, L.P.

	 	 	 	 
	
By:

	
VantagePoint Venture Associates IV, L.L.C.,

its General Partner

	 
	 	 	 
	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 
	 	 	 	 

 

 

[Signature Page to Registration Rights Agreement]

 

 

  

 

  

	

VANTAGEPOINT VENTURE PARTNERS IV PRINCIPALS FUND, L.P.

	 	 	 	 
	
By:

	

VantagePoint Venture Associates IV, L.L.C.,

its General Partner

	 
	 	 	 
	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

	

VP NEW YORK VENTURE PARTNERS, L.P.

	 	 	 	 
	
By:

	

VantagePoint Venture Associates IV, L.L.C.,

its General Partner

	 
	 	 	 
	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

[Signature Page to Registration Rights Agreement]

  

 

  

 

	

EDISON VENTURE FUND IV SBIC, L.P.

	 	 	 	 
	
By:

	

Edison Partners IV SBIC, LLC,

its General Partner

	 
	 	 	 
	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

	

EDISON PARTNERS IV SBIC, LLC

	 	 	 
	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

 

[Signature Page to Registration Rights Agreement]

  

 

  

 

GAIN CAPITAL HOLDINGS, INC.

 

COUNTERPART SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

 

[Month, Year]

 

The undersigned desiring to become a Holder as defined under that Registration Rights Agreement dated as of _______ ___, 20__ (as amended, the “Agreement”), among GAIN Capital Holdings, Inc., a Delaware corporation (the “Company”) and the other parties thereto as of the date set forth above, hereby adopts and agrees to be bound by all of the terms and provision of, and shall be entitled to all of the benefits and privileges of, the Agreement applicable to a Holder and authorizes the Company to attach this signature page to the Agreement in order to make the undersigned a party to the Agreement.

 

	 	 	 
	
By:

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 

  

 

  

 

SCHEDULE A

 

Schedule of Other Investors

 

Edison Entities:

 

Edison Venture Fund IV SBIC, L.P.

1009 Lenox Drive #4

Lawrenceville, NJ 08648

Edison Partners IV SBIC, LLC

1009 Lenox Drive #4

Lawrenceville, NJ 08648

 

VantagePoint Entities:

 

VantagePoint Venture Partners IV (Q), L.P.

1001 Bayhill Drive, Suite 300

San Bruno, CA 94066

VantagePoint Venture Partners IV, L.P.

1001 Bayhill Drive, Suite 300

San Bruno, CA 94066

VantagePoint Venture Partners Principals Fund, L.P.

1001 Bayhill Drive, Suite 300

San Bruno, CA 94066

VP New York Venture Partners, L.P.

1001 Bayhill Drive, Suite 300

San Bruno, CA 94066EX 10.1 Letter Agreement 01-12-15

Aviat Networks, Inc.
5200 Great America Parkway
Santa Clara, CA 95054

January 11, 2015
Steel Partners Holdings L.P.
590 Madison Avenue, 32nd Floor
New York, NY 10022
Attn:    Warren G. Lichtenstein
Lone Star Value Investors, LP
c/o Lone Star Value Management, LLC
53 Forest Avenue, 1st Floor
Old Greenwich, CT 06870
Attn:    Jeffrey E. Eberwein

Gentlemen: 
This letter (this “Agreement”) constitutes the agreement between (a) Aviat Networks, Inc. (the “Company”); (b) Steel Partners Holdings L.P. (“Steel”) and each of the other related Persons (as defined below) set forth on the signature pages hereto (collectively with Steel, the “Steel Group”); and (c) Lone Star Value Investors, LP (“Lone Star”) and each of the other related Persons set forth on the signature pages hereto (collectively with Lone Star, the “Lone Star Group”). The Steel Group and each of their Affiliates (as defined below) and Associates (as defined below) and the Lone Star Group and each of their Affiliates and Associates are collectively referred to as the “Investors.”
1.On the date of this Agreement, Clifford H. Higgerson, Raghavendra Rau, Mohsen Sohi and Edward F. Thompson will retire from the Company’s Board of Directors (the “Board”), and their service as directors will immediately conclude.
2.On the date of this Agreement, the Board will appoint James R. Henderson, John Mutch, Robert G. Pearse and John Quicke (collectively, the “New Directors”) to the Board. Messrs. Mutch and Quicke are referred to as the “Steel Designees,” and Messrs. Henderson and Pearse are referred to the “Lone Star Designees.”
3.At the Company’s Annual Meeting of Stockholders in respect of its 2014 fiscal year (the “2014 Annual Meeting”), the Board’s nominees to stand for election will be Charles D. Kissner, William A. Hasler, Michael A. Pangia and Dr. James C. Stoffel (collectively, the “Continuing Incumbent Directors”) and the New Directors. 
4.The Company will use its reasonable best efforts to hold the 2014 Annual Meeting no later than February 15, 2015, or as soon thereafter as possible. At the 2014 Annual Meeting, the election of directors, the ratification of auditors and the non-binding advisory vote on the compensation of the Company’s named executive officers are the only matters that the Company intends to present to a vote of stockholders.
5.During the Restricted Period (as defined below), the Company will not increase the size of the Board to more than eight members.

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6.Following the appointment of the New Directors, the Company will cause the initial composition of the Board’s committees to be as follows. Thereafter, the Board will be free to make adjustments to the composition of its committees from time to time as it determines in its discretion.
	
			
	Audit Committee
	Governance and Nominating Committee
	Compensation Committee

	John Mutch (Chairman)
	John Quicke (Chairman)
	Dr. James C. Stoffel (Chairman)

	James R. Henderson
	Robert Pearse
	John Quicke

	William A. Hasler
	William A. Hasler
	Robert Pearse

7.During the Restricted Period, the Board will appoint at least one New Director to any committees of the Board formed after the date of this Agreement.
8.Mr. Kissner does not intend to continue his service as Chairman of the Board following the conclusion of the 2014 Annual Meeting (but, for the avoidance of doubt, intends to continue to serve as a director). The Company will elect Mr. Mutch as Chairman of the Board immediately after the 2014 Annual Meeting.
9.During the Restricted Period, if any of the (a) Steel Designees ceases to be a member of the Board for any reason, then the Steel Group will be entitled to designate (and the Board will appoint promptly after the approval of the Governance and Nominating Committee) another person (a “Steel Successor Designee”) to serve as a director in place of such Steel Designee; and (b) Lone Star Designees ceases to be a member of the Board for any reason, then the Lone Star Group will be entitled to designate (and the Board will appoint promptly after the approval of the Governance and Nominating Committee) another person (a “Lone Star Successor Designee”) to serve as a director in place of such Lone Star Designee. Any Steel Successor Designee or Lone Star Successor Designee, as applicable, must (i) be qualified to serve as a member of the Board under all applicable corporate governance policies or guidelines of the Company and the Board and applicable legal, regulatory and stock market requirements; (ii) meet the independence requirements with respect to the Company of the listing rules of The NASDAQ Stock Market LLC or any successor thereto; and (iii) be reasonably acceptable to the Board (including the Governance and Nominating Committee) in its good faith business judgment. Upon becoming a member of the Board, the Steel Successor Designee or Lone Star Successor Designee, as applicable, will succeed to all of the rights and privileges, and will be bound by the terms and conditions, of a Steel Designee or Lone Star Designee, as applicable, under this Agreement.
10.As a condition to the appointment of the New Directors as contemplated by paragraph 2, and as a condition to the continuing directorships of the Continuing Incumbent Directors, each of the New Directors and the Continuing Incumbent Directors have agreed in writing, during the term of any service as a director of the Company, to (a) comply with all policies, procedures, processes, codes, rules, standards and guidelines applicable to members of the Board, including, without limitation, the Company’s code of conduct, insider trading policy, Regulation FD policy, related party transactions policy and corporate governance guidelines, in each case as amended from time to time; and (b) keep confidential and not publicly disclose discussions and matters considered in meetings of the Board and its committees, unless previously disclosed publicly by the Company.
11.Notwithstanding anything to the contrary in this Agreement, each of the New Directors, during his term of service as a director of the Company, will not be prohibited from acting in his capacity as a director or from complying with his fiduciary duties as a director of the Company 

2

(including, without limitation, voting on any matter submitted for consideration by the Board, participating in deliberations or discussions of the Board and making suggestions or raising any issues or recommendations to the Board), all in accordance with the agreement set forth in paragraph 10.
12.During the Restricted Period, at each annual or special meeting of the Company’s stockholders at which directors are elected, the Investors will (a) cause all Voting Securities beneficially owned by them to be present for quorum purposes; and (b) if applicable, vote, or cause to be voted, all Voting Securities beneficially owned by them in favor of the Company’s slate of directors.
13.During the Restricted Period, at each annual or special meeting of the Company’s stockholders at which directors are elected, the Company will recommend, support and solicit proxies for the election of the New Directors in the same manner as for the other nominees standing for election at that meeting.
14.Each of the New Directors will be (a) compensated for his service as a director and will be reimbursed for his expenses on the same basis as all other non-employee directors of the Company; (b) granted equity-based compensation and other benefits on the same basis as all other non-employee directors of the Company; and (c) entitled to the same rights of indemnification and directors’ and officers’ liability insurance coverage as the other non-employee directors of the Company as such rights may exist from time to time.
15.From the date of this Agreement until 30 days prior to the deadline for the submission of director nominations in respect of the Company’s Annual Meeting of Stockholders in respect of its 2015 fiscal year (such meeting, the “2015 Annual Meeting,” and such period, the “Restricted Period”), none of the Investors will, and each Investor will cause its respective Affiliates and Associates and its and their respective principals, directors, general partners, officers, employees, and agents and representatives acting on its behalf not to, in any way, directly or indirectly (in each case, except as expressly permitted by this Agreement):
(a)(i) make, participate in or encourage any “solicitation” (as such term is used in the proxy rules of the Securities and Exchange Commission (the “SEC”)) of proxies or consents with respect to the election or removal of directors or any other matter or proposal; (ii) become a “participant” (as such term is used in the proxy rules of the SEC) in any such solicitation of proxies or consents; or (iii) seek to advise, encourage or influence any Person with respect to the voting of any Voting Securities, it being understood that, except as set forth in paragraph 12, nothing in this paragraph 15(a) will be interpreted to restrict the Investors’ ability to vote their shares of the Company’s common stock on any proposal duly brought before the Company’s stockholders as each of the Investors determines in its sole discretion;
(b)initiate, propose or otherwise “solicit” (as such term is used in the proxy rules of the SEC), directly or indirectly, the Company’s stockholders for the approval of any shareholder proposal, whether made pursuant to Rule 14a-4 or Rule 14a-8 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise, or cause or encourage any Person to initiate or submit any such shareholder proposal;
(c)other than as provided in this Agreement, (i) seek, alone or in concert with others, election or appointment to, or representation on, the Board or nominate or propose the nomination of, or recommend the nomination of, any candidate to the Board; (ii) seek, alone or in 

3

concert with others, the removal of any member of the Board; or (iii) make a request for any stockholder list or other similar Company records;
(d)(i) form or join (whether or not in writing) in a partnership, limited partnership, syndicate or other group, including, without limitation, a “group” as defined pursuant to Section 13(d) of the Exchange Act, with respect to any Voting Securities (including any group comprised of the Steel Group and the Lone Star Group); (ii) deposit any Voting Securities into a voting trust, arrangement or agreement; or (iii) subject any Voting Securities to any voting trust, arrangement or agreement, in each case other than solely with other Affiliates of the Steel Group or the Lone Star Group, as applicable, with respect to Voting Securities now or hereafter owned by them;
(e)act, alone or in concert with others, to (i) control or seek to control, or influence or seek to influence, the management, the Board or the policies of the Company (including, without limitation, any material change to the capitalization or dividend policy of the Company or any material change in the Company’s management, business or corporate structure), it being understood that nothing in this paragraph 15(e)(i) will limit the Investors’ ability to communicate their views with respect to the aforementioned privately to the Board and management of the Company in a manner that would not reasonably require the Company to make any public disclosure relating to such communication; or (ii) seek, propose or make any public statement with respect to any merger, consolidation, business combination, tender or exchange offer, sale or purchase of assets, sale or purchase of securities, dissolution, liquidation, restructuring, recapitalization or similar transaction involving the Company or its subsidiaries, except that, solely with respect to an Opposition Matter (as defined below), the Investors will have the right to communicate with stockholders and third parties (but not solicit in opposition) for the limited purpose of informing them as to how the Investors will vote their shares of the Company’s common stock in connection with the stockholder vote on an Opposition Matter and nothing in this Agreement shall be interpreted to restrict their ability to do so;
(f)other than as provided in this Agreement, with respect to the Company or the Voting Securities, (i) communicate with the Company’s stockholders or others pursuant to Rule 14a-1(l)(2)(iv) pursuant to the Exchange Act; (ii) participate in, or take any action pursuant to, any “proxy access” proposal adopted by the SEC; or (iii) conduct any nonbinding referendum or “stockholder forum”;
(g)publicly make or disclose any statement regarding any intent, purpose, plan or proposal with respect to the Board or the Company, its management, policies, affairs or assets, or the Voting Securities or this Agreement, that is inconsistent with the provisions of this Agreement, including, without limitation, any intent, purpose, plan or proposal that is conditioned on, or would require, the waiver, amendment, nullification or invalidation of any provision of this Agreement, or take any action that could require the Company to make any public disclosure relating to any such intent, purpose, plan, proposal or condition;
(h)other than with other Affiliates of the respective Investor, enter into any agreements, understandings or arrangements (whether written or oral), with, or advise, finance, assist or encourage, any Person, in connection with any of the foregoing;
(i)sell, offer or agree to sell all or substantially all, directly or indirectly, through swap or hedging transactions, derivative agreements or otherwise, voting rights decoupled from the underlying Voting Shares held by the Investors to any third party; and

4

(j)(i) make or in any way participate as an offerer (as such term is defined in Schedule TO under the Exchange Act), directly or indirectly, in any tender offer, exchange offer, merger, business combination, recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction involving the Company or its securities or assets (it being understood that the foregoing will not restrict the Investors from tendering shares, receiving payment for shares or otherwise participating in any such transaction on the same basis as other stockholders of the Company, or from participating in any such transaction that has been approved by the Board); or (ii) make, or support any third party in making, any public proposal, either alone or in concert with others, to the Company or the Board that would reasonably be expected to require the Company to make a public announcement regarding any of the types of matters set forth above in this paragraph 15(j).
16.During the Restricted Period, none of members of the Steel Group will, and Steel will cause each member of the Steel Group and its and their respective Affiliates and Associates and its and their respective principals, directors, general partners, officers, employees, and agents and representatives acting on its behalf not to, in any way, directly or indirectly, except with the prior written consent of the Company, acquire, or offer, seek or agree to acquire, by purchase or otherwise, or direct any third party in the acquisition of, any Voting Securities or assets, or rights or options to acquire any Voting Securities or assets, of the Company, or engage in any swap or hedging transactions or other derivative agreements of any nature with respect to Voting Securities, if such acquisition or transaction would result in the Steel Group having beneficial ownership of more than 24.9% of the voting power of the Voting Securities or economic exposure to more than 24.9% of the Voting Securities.
17.During the Restricted Period, none of members of the Lone Star Group will, and Lone Star will cause each member of the Lone Star Group and its and their respective Affiliates and Associates and its and their respective principals, directors, general partners, officers, employees, and agents and representatives acting on its behalf not to, in any way, directly or indirectly, except with the prior written consent of the Company, acquire, or offer, seek or agree to acquire, by purchase or otherwise, or direct any third party in the acquisition of, any Voting Securities or assets, or rights or options to acquire any Voting Securities or assets, of the Company, or engage in any swap or hedging transactions or other derivative agreements of any nature with respect to Voting Securities, if such acquisition or transaction would result in the Lone Star Group having beneficial ownership of more than 9.9% of the voting power of the Voting Securities or economic exposure to more than 9.9% of the Voting Securities.
18.The Board has duly approved (the “Board Approval”) the acquisition by the Steel Group and its Affiliates and Associates, whether in a single transaction or multiple transactions from time to time, of additional shares of the Company’s common stock to the extent that such acquisitions would result in the Steel Group and its Affiliates and Associates being the owner of 15% or more, but less than 24.9%, of the voting power of the shares of voting stock of the Company issued and outstanding from time to time, subject to (a) the limitations provided for in this paragraph 18; and (b) the accuracy of the representations and warranties of the Steel Group in this Agreement. The Steel Group, on behalf of itself and its Affiliates and Associates, agrees that if it or its Affiliates and Associates becomes the owner of shares of voting stock of the Company such that it would, together with its Affiliates and Associates, own 24.9% or more of the voting power of the shares of voting stock of the Company issued and outstanding from time to time under circumstances in which it would be an “interested stockholder” as defined in Section 203 of the General Corporation Law of 

5

the State of Delaware (the “DGCL,” and such section, “DGCL 203”) (but, for this purpose, replacing 15% in such definition with 24.9%) (any event causing the Steel Group and its Affiliates and Associates to own in the aggregate 24.9% or more of the voting power of the shares of voting stock of the Company issued and outstanding from time to time, an “Additional Acquisition”), then (i) notwithstanding the Board Approval, the restrictions under DGCL 203 applicable to a “business combination” with an “interested stockholder” will apply as a matter of contract pursuant to this Agreement (except as modified herein) to the Steel Group and its Affiliates and Associates as if the Board Approval had not been granted and as if the Additional Acquisition had caused the Steel Group and its Affiliates and Associates to become an interested stockholder for purposes of DGCL 203 (except that wherever 15% is used in DGCL 203 it shall mean, for all purposes of this Agreement, 24.9%); and (ii) the Steel Group and its Affiliates and Associates will not engage in any business combination with the Company for a period of three years following the time that it and its Affiliates and Associates became the owner of 24.9% or more of the voting power of the shares of voting stock of the Company issued and outstanding from time to time unless (a) prior to such time the Board approved, including approval by a majority of the directors who are not the New Directors, either the business combination or the Additional Acquisition; (b) upon consummation of the transaction which resulted in the Steel Group and its Affiliates and Associates becoming the owner of 24.9% or more of the voting power of the shares of voting stock of the Company issued and outstanding from time to time, the Steel Group and its Affiliates and Associates owned at least 85% of the voting power of the voting stock of the Company outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the Steel Group and its Affiliates and Associates) those shares owned by (i) persons who are directors and also officers of the Company; and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or (c) at or subsequent to such time the business combination is approved by the Board, including by a majority of the directors who are not the New Directors, and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 662⁄3% of the voting power of the voting stock of the Company outstanding which is not owned by the Steel Group and its Affiliates and Associates. Notwithstanding the foregoing, the restrictions set forth in this paragraph 18 will not apply if any of the exceptions in DGCL Section 203(b)(4), (5) or (6) would be applicable at the time of such business combination. 
19.For so long as it beneficially owns at least 9.9% of the Company’s outstanding common stock, the Steel Group will be entitled to have one observer (the “Steel Observer”) attend each meeting of the Board. For so long as it beneficially owns at least 9.9% of the Company’s outstanding common stock, the Lone Star Group will be entitled to have one observer (the “Lone Star Observer”) attend each meeting of the Board. The Steel Observer and the Lone Star Observer, as applicable, will (a) receive copies of all notices and written information furnished to the Board reasonably in advance of each meeting (to the extent practicable); and (b) be permitted to be present at all meetings of the Board (whether by telephone or in person). Notwithstanding the foregoing, the Company will be entitled to withhold any information and exclude the Steel Observer or the Lone Star Observer, as applicable, from any (i) executive or private sessions of any meeting; or (ii) meeting or portion thereof as is reasonably determined by the Company to be necessary to protect the Company’s attorney-client privilege or as may otherwise be appropriate. Prior to attending any meetings of the Board, the Steel Observer and the Lone Star Observer will execute a confidentiality agreement in form and substance reasonably acceptable to the parties with respect to the information and discussions to which they will have access. Notwithstanding anything to the contrary in this 

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paragraph 19, the attendance of either the Steel Observer or the Lone Star Observer at any meetings of the Board held after the 2015 Annual Meeting will be at the discretion of the Board.
20.During the Restricted Period, the Company and the Investors will each refrain from making, and will cause their respective Affiliates and Associates and its and their respective principals, directors, stockholders, members, general partners, officers and employees not to make, any statement or announcement that both relates to and constitutes an ad hominem attack on, or that both relates to and otherwise disparages, impugns or is reasonably likely to damage the reputation of, (a) in the case of statements or announcements by any of the Investors, the Company or any of its Affiliates or subsidiaries or any of its or their respective officers or directors or any person who has served as an officer or director of the Company or any of its Affiliates or subsidiaries; and (b) in the case of statements or announcements by the Company, the Investors and their respective Affiliates and Associates and their respective principals, directors, stockholders, members, general partners, officers, employees and advisors, or any person who has served as such. The foregoing will not prevent the making of any factual statement in any compelled testimony or production of information, whether by legal process, subpoena or as part of a response to a request for information from any governmental authority with jurisdiction over the party from whom information is sought.
21.Within two business days of the date of this Agreement, the Company will reimburse the Steel Group for its reasonable and documented out-of-pocket expenses (up to a maximum of $75,000) incurred by the Steel Group in connection with the negotiation and execution of this Agreement and all related activities and matters. Within two business days of the date of this Agreement, the Company will reimburse the Lone Star Group for its reasonable and documented out-of-pocket expenses (up to a maximum of $75,000) incurred by the Lone Star Group in connection with the preparation of its notice of nomination of candidates to the Board, the negotiation and execution of this Agreement and all related activities and matters. Except as provided in this  paragraph 21, each cost or expense incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.
22.The Lone Star Group agrees that automatically and without any additional action by any party hereto, upon the execution of this Agreement by the parties, Lone Star irrevocably withdraws, and will be deemed to have irrevocably withdrawn, its nomination of candidates for election as directors of the Company set forth in its letter to the Company dated September 9, 2014.
23.On the date of this Agreement, the Company will issue a press release in the form attached as Exhibit A (the “Press Release”). Neither the Company nor the Investors will make any public statements with respect to the matters covered by this Agreement (including, without limitation, in any filing with the SEC, any other regulatory or governmental agency, any stock exchange or in any materials that would reasonably be expected to be filed with the SEC) that are inconsistent with, or otherwise contrary to, the statements in the Press Release.
24.As used in this Agreement, the term (a) “Person” will be interpreted broadly to include, among others, any individual, general or limited partnership, corporation, limited liability or unlimited liability company, joint venture, estate, trust, group, association or other entity of any kind or structure; (b) “Affiliate” will have the meaning set forth in Rule 12b-2 promulgated under the Exchange Act and will include Persons who become Affiliates of any Person subsequent to the date of this Agreement; (c) “Associate” will have the meaning set forth in Rule 12b-2 promulgated under the Exchange Act and will include Persons who become Associates of any Person subsequent to the date of this Agreement, but will exclude any Person not controlled by or under common control with the related Person; (d) “Voting Securities” will mean the shares of the Company’s common stock 

7

and any other securities of the Company entitled to vote in the election of directors, or securities convertible into, or exercisable or exchangeable for, such shares or other securities, whether or not subject to the passage of time or other contingencies; (e) “business day” will mean any day other than a Saturday, Sunday or a day on which the Federal Reserve Bank of San Francisco is closed; (f) “beneficially own,” “beneficially owned” and “beneficial ownership” will have the meaning set forth in Rule 13d-3 promulgated under the Exchange Act; and (g) “Opposition Matter” means any of the following transactions, but only to the extent required by the DGCL (or, exclusively in the case of the issuance of more than 20% of the outstanding shares of the Company’s common stock, the rules of The NASDAQ Stock Market), to be submitted by the Board to the Company’s stockholders for approval: (i) the sale or transfer of all or substantially all of the Company’s assets in one or a series of transactions; (ii) the sale or transfer of a majority of the outstanding shares of the Company’s common stock (through a merger, stock purchase or otherwise); and (iii) any merger, consolidation, acquisition of control or other business combination, tender or exchange offer, dissolution, liquidation, reorganization, or change in capital structure (including issuance in the aggregate of more than 20% of the outstanding shares of the Company’s common stock), in each case that has been approved by the Board but voted against by all of the New Directors.
25.Each of the Investors, severally and not jointly, represents and warrants as to itself that (a) this Agreement has been duly authorized, executed and delivered by it and is a valid and binding obligation of such Investor, enforceable against it in accordance with its terms; (b) as of the date of this Agreement, none of Investors or any of their Affiliates is a party to any swap or hedging transactions or other derivative agreements of any nature with respect to the Voting Securities; and (c) as of the date of this Agreement, the Investors have not, directly or indirectly, compensated or agreed to compensate the New Directors for their service as a nominee or director of the Company with any cash, securities (including, without limitation, any rights or options convertible into or exercisable for or exchangeable into securities or any profit sharing agreement or arrangement) or other form of compensation directly or indirectly related to the Company or its securities (collectively, “Unpermitted Compensation Arrangements”). The Steel Group represents and warrants that as of the date of this Agreement, it is the beneficial owner of an aggregate of 8,042,892 shares of Voting Securities. The Lone Star Group represents and warrants that as of the date of this Agreement, it is the beneficial owner of an aggregate of 1,250,000 shares of Voting Securities.
26.During the Restricted Period, the Investors will not, directly or indirectly, compensate the New Directors for their service as a director of the Company in any way, including, without limitation, with any Unpermitted Compensation Arrangements.
27.The Company represents and warrants that (a) this Agreement has been duly authorized, executed and delivered by it and is a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms; (b) does not require the approval of the stockholders of the Company; and (c) does not and will not violate any law, any order of any court or other agency of government, the Company’s Certificate of Incorporation or Bylaws, each as amended from time to time, or any provision of any agreement or other instrument to which the Company or any of its properties or assets is bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such agreement or other instrument, or result in the creation or imposition of, or give rise to, any material lien, charge, restriction, claim, encumbrance or adverse penalty of any nature whatsoever pursuant to any such indenture, agreement or other instrument.

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28.The Company and the Investors each acknowledge and agree that money damages would not be a sufficient remedy for any breach (or threatened breach) of this Agreement by it and that, in the event of any breach or threatened breach hereof, (a) the non-breaching party will be entitled to injunctive and other equitable relief, without proof of actual damages; (b) the breaching party will not plead in defense thereto that there would be an adequate remedy at law; and (c) the breaching party agrees to waive any applicable right or requirement that a bond be posted by the non-breaching party. Such remedies will not be the exclusive remedies for a breach of this Agreement, but will be in addition to all other remedies available at law or in equity. The obligations of each group of Investors in this Agreement are several and not joint, and neither group of Investors will have any liability for a breach of this Agreement by the other group of Investors.
29.This Agreement and the Exhibit constitute the only agreement between the Investors and the Company with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written. This Agreement is binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. No party may assign or otherwise transfer either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other party. Any purported transfer requiring consent without such consent is void. No amendment, modification, supplement or waiver of any provision of this Agreement will be effective unless it is in writing and signed by the party affected thereby, and then only in the specific instance and for the specific purpose stated therein. Any waiver by any party of a breach of any provision of this Agreement will not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions will not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
30.If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. The parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the purposes of such invalid or unenforceable provision.
31.This Agreement is governed by and will be construed in accordance with the laws of the State of Delaware. Each of the Investors and the Company (a) irrevocably and unconditionally consents to the personal jurisdiction and venue of the federal or state courts located in Wilmington, Delaware; (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court; (c) agrees that it will not bring any action relating to this Agreement or otherwise in any court other than the such courts; and (d) waives any claim of improper venue or any claim that those courts are an inconvenient forum. The parties agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in paragraph 33 or in such other manner as may be permitted by applicable law, will be valid and sufficient service thereof. Each of the parties, after consulting or having had the opportunity to consult with counsel, knowingly, voluntarily and intentionally waives any right that such party may have to a trial by jury in any litigation based upon or arising out of this Agreement or any related instrument or agreement, or any of the transactions contemplated thereby, or any course of conduct, dealing, statements (whether oral or written), or actions of any of them. No party will 

9

seek to consolidate, by counterclaim or otherwise, any action in which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived.
32.This Agreement is solely for the benefit of the parties and is not enforceable by any other Person.
33.All notices, consents, requests, instructions, approvals and other communications provided for herein, and all legal process in regard hereto, will be in writing and will be deemed validly given, made or served if (i) given by fax, when such fax is transmitted to the fax number set forth below and the appropriate confirmation is received; or (ii) if given by any other means, when delivered in person, by overnight courier or two business days after being sent by registered or certified mail (postage prepaid, return receipt requested) as follows:
(a)If to the Company:
Aviat Networks, Inc.
5200 Great America Parkway
Santa Clara, CA 95054
Attn:    General Counsel
Fax:    (408) 567-7111
with a copy (which will not constitute notice) to:
Wilson Sonsini Goodrich & Rosati
Professional Corporation
650 Page Mill Road
Palo Alto, CA 94303 
Attn:    Larry W. Sonsini
Robert G. Day
Bradley L. Finkelstein
Fax:    (650) 493-6811

(b)If to the Steel Group:
Steel Partners Holdings L.P.
590 Madison Avenue, 32nd Floor
New York, NY 10022
Attn:    Jack Howard
Fax:    (212) 546-9217
with a copy (which will not constitute notice) to:
Olshan Frome Wolosky LLP
Park Avenue Tower
65 East 55th Street
New York, NY 10022
Attn:    Steve Wolosky
Fax:    (212) 451-2222

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(c)If to the Lone Star Group:
Lone Star Value Management, LLC
53 Forest Avenue, 1st Floor
Old Greenwich, CT 06870
Attn:    Jeffrey E. Eberwein
Fax:    (203) 990-0727
with a copy (which will not constitute notice) to:
Schulte Roth & Zabel LLP
919 Third Avenue
New York, NY 10022
Attn:    Marc Weingarten
Fax:    (212) 593-5955
At any time, any party may, by notice given in accordance with this paragraph to the other party, provided updated information for notices hereunder.
34.Each of the parties acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed this Agreement with the advice of such counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this Agreement, and any and all drafts relating thereto exchanged among the parties will be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties, and any controversy over interpretations of this Agreement will be decided without regard to events of drafting or preparation.
35.This Agreement and any amendments hereto may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart. Any such counterpart, to the extent delivered by fax or .pdf, .tif, .gif, .jpg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”), will be treated in all manner and respects as an original executed counterpart and will be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party may raise the use of an Electronic Delivery to deliver a signature, or the fact that any signature or agreement or instrument was transmitted or communicated through the use of an Electronic Delivery, as a defense to the formation of a contract, and each party forever waives any such defense, except to the extent such defense relates to lack of authenticity.
[Signature page follows.]

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If the terms of this Agreement are in accordance with your understanding, please sign below, whereupon this Agreement will constitute a binding agreement among us.

Very truly yours,
AVIAT NETWORKS, INC.
	
			
	By:
	/s/ Charles Kissner

	 
	Name:   
	Charles Kissner

	 
	Title:   
	Chairman of the Board

ACCEPTED AND AGREED
as of the date written above:
STEEL PARTNERS HOLDINGS L.P.
By:    Steel Partners Holdings GP Inc.
General Partner
By:    /s/ Jack Howard    
Name:    Jack Howard
Title:    President
STEEL PARTNERS HOLDINGS GP INC.
By:    /s/ Jack Howard    
Name:    Jack Howard
Title:    President
STEEL EXCEL INC.
By:    /s/ Jack Howard    
Name:    Jack Howard
Title:    Principal Executive Officer

12

SPH GROUP LLC
By:    Steel Partners Holdings GP Inc.
Managing Member
By:    /s/ Jack Howard    
Name:    Jack Howard
Title:    President
SPH GROUP HOLDINGS LLC
By:    Steel Partners Holdings GP Inc.
Manager
By:    /s/ Jack Howard    
Name:    Jack Howard
Title:    President
LONE STAR VALUE INVESTORS, LP
By:    /s/ Jeffrey E. Eberwein    
Name:    Jeffrey E. Eberwein
Title:    Manager
LONE STAR VALUE MANAGEMENT, LLC
By:    /s/ Jeffrey E. Eberwein    
Name:    Jeffrey E. Eberwein
Title:    Sole Member

13

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