Document:

ex10_1.htm

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

VENDUM BATTERIES INC.

12% CONVERTIBLE PROMISSORY NOTE

 

	$50,000.00 	 July 12, 2010 

 

1.  Principal and Interest.

	
(a)  

	
Vendum Batteries Inc., (the "Company"), for value received, hereby promises to pay to the order of Murrayfield Limited (the "Investor" or the "Holder") the sum of Fifty Thousand USD ($50,000.00).

(b) This 12% Convertible Promissory Note (the "Convertible Note") shall bear interest from the date of issuance of this Convertible Note until paid in full at the rate of 12% per annum. 

This Convertible Note, including principal and accrued interest thereunder, shall be payable in full by July 13, 2011 (the "Demand Date).   

(c) Upon payment in full of the principal and bonus payment, this Convertible Note shall be surrendered to the Company for cancellation.

(d) The principal and interest payments due under this Convertible Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Holder hereof as such Holder shall from time to time designate.

2. Attorney's Fees. If the indebtedness represented by this Convertible Note or any part thereof is collected in bankruptcy, receivership or other judicial proceedings or if this Convertible Note is placed in the hands of attorneys for collection after default, the Company agrees to pay, in addition to the principal and bonus payment payable hereunder, reasonable attorneys' fees and costs incurred by the Investor.

3.  Conversion.

3.1 Voluntary Conversion. The Holder shall have the right, exercisable in whole or in part, to convert the outstanding principal and accrued interest hereunder into a number of fully paid and non-assessable whole shares of the Company's par value common stock ("Common Stock") determined in accordance with Section 3.2 below.

 

  

  

  

3.2 Shares Issuable. The number of whole shares of Common Stock into which this Convertible Note may be voluntarily converted during such specified periods of time (the "Conversion Shares") shall be determined by the Fair Market Value of the shares at the date of conversion. (the “Note Conversion Price”). For the avoidance of doubt Fair Market value will be considered the lesser of the following:

a. The share price at the last private offering of the company’s common stock

	
  

	
b. The 30 day average of the companies stock in the event a public listing of the companies stock has taken place.

3.3 Notice and Conversion Procedures. If the Holder elects to convert this Convertible Note, the Holder shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Convertible Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Holder certificate(s) for the Common Stock issuable upon such conversion and, if the entire principal amount hereunder was not so converted, a new note representing such balance. 

3.4 Other Conversion Provisions. 

(a)Adjustment of Note Conversion Price. In the event the Company shall in any manner, subsequent to the issuance of this Convertible Note, approve a reclassification involving a reverse stock split and subdivision of the Company’s issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be adjusted by proportionately increasing the Note Conversion Price on the date that such subdivision shall become effective.  In the event the Company shall in any manner, subsequent to the issuance of this Convertible Note, approve a reclassification involving a forward stock split and subdivision of the Company’s issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be adjusted by proportionately decreasing the Note Conversion Price on the date that such subdivision shall become effective.

   

(b)Common Stock Defined. Whenever reference is made in this Convertible Note to the shares of Common Stock, the term "Common Stock” shall mean the Common Stock of the Company authorized as of the date hereof, and any other class of stock ranking on a parity with such Common Stock. Shares issuable upon conversion hereof shall include only shares of Common Stock of the Company.

3.5 No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Convertible Note, the Company shall pay to the Holder the amount of outstanding principal hereunder that is not so converted.

3.6  Redemption. This Convertible Note, including principal and accrued interest thereunder, may be redeemed by the Company at any time at 110% of the then current value (the “Redemption Valuation Price”). If the Company elects to redeem this Convertible Note, the Company shall provide the Holder with a thirty day written notice of redemption. The notice must be delivered to the Holder.   

 

  

2

  

4. Representations, Warranties and Covenants of the Company. The Company represents, warrants and covenants with the Holder as follows:

(a) Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Convertible Note and the performance of all obligations of the Company hereunder has been taken, and this Convertible Note constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

(b) Governmental Consents. No consent, approval, qualification, order or authorization of, or filing with, any local, state or federal governmental authority is required on the part of the Company in connection with the Company's valid execution, delivery or performance of this Convertible Note except any notices required to be filed with the Securities and Exchange Commission under Regulation D of the Securities Act of 1933, as amended (the "1933 Act"), or such filings as may be required under applicable state securities laws, which, if applicable, will be timely filed within the applicable periods therefor.

(c) No Violation. The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.

5. Representations and Covenants of the Holder. The Company has entered into this Convertible Note in reliance upon the following representations and covenants of the Holder:

(a) Investment Purpose. This Note and the Common Stock issuable upon conversion of the Note are acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.

(b) Private Issue. The Holder understands (i) that this Convertible Note and the Common Stock issuable upon conversion of this Convertible Note are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 8.

 

  

3

  

(c) Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.

(d) Risk of No Registration. The Holder understands that if the Company does not register with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the 1933 Act is not in effect when it desires to sell the Common Stock issuable upon conversion of the Convertible Note, it may be required to hold such securities for an indefinite period. The Holder also understands that any sale of the Convertible Note or the Common Stock which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule.

6. Assignment. Subject to the restrictions on transfer described in Section 9 below, the rights and obligations of the Company and the Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

7. Waiver and Amendment. Any provision of this Convertible Note may be amended, waived or modified upon the written consent of the Company and the Holder.

8. Transfer of This Note or Securities Issuable on Conversion Hereof. With respect to any offer, sale or other disposition of this Note or securities into which this Convertible Note may be converted, the Holder will give written notice to the Company prior thereto, describing briefly the manner thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests, and notifies the Holder thereof within five (5) business days after receiving notice of the transfer, the Holder may effect such transfer. The Convertible Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.

9. Notices. Any notice, other communication or payment required or permitted hereunder shall be in writing and shall be deemed to have been given upon delivery if personally delivered or three (3) business days after deposit if deposited in the Canada’s mail for mailing by certified mail, postage prepaid, and addressed as follows:

 

	
If to Investor:

	
Murrayfield Limited

Conference House, 152 Morrison Street, Edinburgh, E83 8EB, UK

	
If to Company:

	
Vendum Batteries Inc.

Accounting Worx Suite, 400 Thames Valley Park Drive, Reading, RG6 1PT

  

4

  

 

Each of the above addressees may change its address for purposes of this Section by giving to the other addressee notice of such new address in conformance with this Section.

10. Governing Law. This Convertible Note is being delivered in and shall be construed in accordance with the laws of the United States, without regard to the conflicts of laws provisions thereof.

11. Heading; References. All headings used herein are used for convenience only and shall not be used to construe or interpret this Note. Except as otherwise indicated, all references herein to Sections refer to Sections hereof.

12. Waiver by the Company. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

13. Delays. No delay by the Holder in exercising any power or right hereunder shall operate as a waiver of any power or right.

14. Severability. If one or more provisions of this Convertible Note are held to be unenforceable under applicable law, such provision shall be excluded from this Convertible Note and the balance of the Convertible Note shall be interpreted as if such provision was so excluded and shall be enforceable in accordance with its terms.

15. No Impairment. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Note and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder of this Convertible Note against impairment.

THIS PART IS INTENTIONALLY BLANK

 

  

5

  

IN WITNESS WHEREOF, Vendum Batteries Inc. has caused this Convertible Note to be executed in its corporate name and this Convertible Note to be dated, issued and delivered, all on the date first above written.

 

	Vendum Batteries Incorporated	Murrayfield Limited
	
 

 

/s/ Fraser Cottington

	
 

 

/s/ Roger Knox

	
By Fraser Cottington

President

	By Roger Knox 
Authorized Signatory

 

  

6EX-10.87

COMMON STOCK PURCHASE AGREEMENT

Dated as of July 14, 2010

by and between

SYNTROLEUM CORPORATION

and

ENERGY OPPORTUNITY, LTD.

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I PURCHASE AND SALE OF COMMON STOCK
	 	 	1	 
	Section 1.1 Purchase and Sale of Stock
	 	 	1	 
	Section 1.2 Effective Date; Settlement Dates
	 	 	1	 
	Section 1.3 The Shares
	 	 	2	 
	Section 1.4 Current Report; Prospectus Supplement
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II FIXED REQUEST TERMS; OPTIONAL AMOUNT
	 	 	2	 
	Section 2.1 Fixed Request Notice
	 	 	2	 
	Section 2.2 Fixed Requests
	 	 	3	 
	Section 2.3 Share Calculation
	 	 	3	 
	Section 2.4 Limitation of Fixed Requests
	 	 	4	 
	Section 2.5 Reduction of Commitment
	 	 	4	 
	Section 2.6 Below Threshold Price
	 	 	5	 
	Section 2.7 Settlement
	 	 	5	 
	Section 2.8 Reduction of Pricing Period
	 	 	5	 
	Section 2.9 Optional Amount
	 	 	6	 
	Section 2.10 Calculation of Optional Amount Share
	 	 	7	 
	Section 2.11 Exercise of Optional Amount
	 	 	7	 
	Section 2.12 Aggregate Limit
	 	 	7	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE INVESTOR
	 	 	8	 
	Section 3.1 Organization and Standing of the Investor
	 	 	8	 
	Section 3.2 Authorization and Power
	 	 	8	 
	Section 3.3 No Conflicts
	 	 	9	 
	Section 3.4 Information
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	9	 
	Section 4.1 Organization, Good Standing and Power
	 	 	10	 
	Section 4.2 Authorization, Enforcement
	 	 	10	 
	Section 4.3 Capitalization
	 	 	10	 
	Section 4.4 Issuance of Shares
	 	 	11	 
	Section 4.5 No Conflicts
	 	 	11	 
	Section 4.6 Commission Documents, Financial Statements
	 	 	11	 
	Section 4.7 Subsidiaries
	 	 	13	 
	Section 4.8 No Material Adverse Effect
	 	 	13	 
	Section 4.9 Indebtedness
	 	 	13	 
	Section 4.10 Title To Assets
	 	 	13	 
	Section 4.11 Actions Pending
	 	 	14	 
	Section 4.12 Compliance With Law
	 	 	14	 
	Section 4.13 Certain Fees
	 	 	14	 
	Section 4.14 Operation of Business
	 	 	14	 
	Section 4.15 Environmental Compliance
	 	 	15	 
	Section 4.16 Material Agreements
	 	 	16	 
	Section 4.17 Transactions With Affiliates
	 	 	16	 
	Section 4.18 Securities Act; FINRA Rules
	 	 	16	 
	Section 4.19 Employees
	 	 	18	 
	Section 4.20 Use of Proceeds
	 	 	18	 
	Section 4.21 Investment Company Act Status
	 	 	18	 
	Section 4.22 ERISA
	 	 	19	 
	Section 4.23 Taxes
	 	 	19	 
	Section 4.24 Insurance
	 	 	19	 
	Section 4.25 Acknowledgement Regarding Investor’s Purchase of Shares
	 	 	19	 
	 
	 	 	 	 
	ARTICLE V COVENANTS
	 	 	20	 
	Section 5.1 Securities Compliance
	 	 	20	 
	Section 5.2 Registration and Listing
	 	 	20	 
	Section 5.3 Compliance with Laws.
	 	 	20	 
	Section 5.4 Keeping of Records and Books of Account; Foreign Corrupt
	 	 	 	 
	Practices Act
	 	 	21	 
	Section 5.5 Limitations on Holdings and Issuances
	 	 	21	 
	Section 5.6 Other Agreements and Other Financings
	 	 	22	 
	Section 5.7 Stop Orders
	 	 	23	 
	Section 5.8 Amendments to the Registration Statement; Prospectus Supplements;
	 	 	 	 
	Free Writing Prospectuses
	 	 	24	 
	Section 5.9 Prospectus Delivery
	 	 	25	 
	Section 5.10 Selling Restrictions
	 	 	25	 
	Section 5.11 Effective Registration Statement
	 	 	26	 
	Section 5.12 Non-Public Information
	 	 	26	 
	Section 5.13 Broker/Dealer
	 	 	26	 
	Section 5.14 Disclosure Schedule
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VI OPINION OF COUNSEL AND CERTIFICATE;
	 	 	 	 
	CONDITIONS TO THE SALE AND PURCHASE OF THE SHARES
	 	 	27	 
	Section 6.1 Opinion of Counsel and Certificate
	 	 	27	 
	Section 6.2 Conditions Precedent to the Obligation of the Company
	 	 	27	 
	Section 6.3 Conditions Precedent to the Obligation of the Investor
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VII TERMINATION
	 	 	31	 
	Section 7.1 Term, Termination by Mutual Consent
	 	 	31	 
	Section 7.2 Other Termination
	 	 	31	 
	Section 7.3 Effect of Termination
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VIII INDEMNIFICATION; LIMITATION OF DAMAGES
	 	 	32	 
	Section 8.1 General Indemnity
	 	 	32	 
	Section 8.2 Indemnification Procedures
	 	 	34	 
	Section 8.3 Limitation of Damages
	 	 	35	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	36	 
	Section 9.1 Fees and Expenses
	 	 	36	 
	Section 9.2 Specific Enforcement, Consent to Jurisdiction, Waiver of Jury
	 	 	37	 
	Trial
Section 9.3 Entire Agreement; Amendment
	 	 	37	 
	Section 9.4 Notices
	 	 	38	 
	Section 9.5 Waivers
	 	 	39	 
	Section 9.6 Headings
	 	 	39	 
	Section 9.7 Successors and Assigns
	 	 	39	 
	Section 9.8 Governing Law
	 	 	39	 
	Section 9.9 Survival
	 	 	39	 
	Section 9.10 Counterparts
	 	 	39	 
	Section 9.11 Publicity
	 	 	40	 
	Section 9.12 Severability
	 	 	40	 
	Section 9.13 Further Assurances
	 	 	40	 

Annex A. Definitions

COMMON STOCK PURCHASE AGREEMENT

This COMMON STOCK PURCHASE AGREEMENT, made and entered into on this 14th day of
July 2010 (this “Agreement”), by and between Energy Opportunity, Ltd., a business company
incorporated under the laws of the British Virgin Islands (the “Investor”), and Syntroleum
Corporation, a corporation organized and existing under the laws of the State of Delaware (the
“Company”). Capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in Annex A hereto.

RECITALS

WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Company may issue and sell to the Investor and the Investor shall thereupon purchase
from the Company up to $10,000,000 of newly issued shares of the Company’s common stock, $.01 par
value (“Common Stock”), subject, in all cases, to the Trading Market Limit; and

WHEREAS, the offer and sale of the shares of Common Stock hereunder have been registered by
the Company in the Registration Statement, which has been declared effective by order of the
Commission under the Securities Act;

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

PURCHASE AND SALE OF COMMON STOCK

Purchase and Sale of Stock. Upon the terms and subject to the conditions of this
Agreement, during the Investment Period the Company in its discretion may issue and sell to the
Investor up to $10,000,000 (the “Total Commitment”) of duly authorized, validly issued,
fully paid and non-assessable shares of Common Stock (subject in all cases to the Trading Market
Limit, the “Aggregate Limit”), by (i) the delivery to the Investor of not more than 24
separate Fixed Request Notices (unless the Investor and the Company mutually agree that a different
number of Fixed Request Notices may be delivered) as provided in Article II hereof and (ii) the
exercise by the Investor of Optional Amounts, which the Company may in its discretion grant to the
Investor and which may be exercised by the Investor, in whole or in part, as provided in Article II
hereof. The aggregate of all Fixed Request Amounts and Optional Amount Dollar Amounts shall not
exceed the Aggregate Limit.

Effective Date; Settlement Dates. This Agreement shall become effective and binding
upon delivery of counterpart signature pages of this Agreement executed by each of the parties
hereto, and the delivery of all other documents, instruments and writings required to be delivered
on the Effective Date, in each case as provided in Section 6.1 hereof, to the offices of Greenberg
Traurig, LLP, 200 Park Avenue, New York, New York 10166, at 9:00 a.m., New York time, on the
Effective Date. In consideration of and in express reliance upon the representations, warranties
and covenants, and otherwise upon the terms and subject to the conditions, of this Agreement, from
and after the Effective Date and during the Investment Period (i) the Company shall issue and sell
to the Investor, and the Investor agrees to purchase from the Company, the Shares in respect of
each Fixed Request and (ii) the Investor may in its discretion elect to purchase Shares in respect
of each Optional Amount. The issuance and sale of Shares to the Investor pursuant to any Fixed
Request or Optional Amount shall occur on the applicable Settlement Date in accordance with
Sections 2.7 and 2.9 (or on such Trading Day in accordance with Section 2.8, as applicable),
provided in each case that all of the conditions precedent thereto set forth in Article VI
theretofore shall have been fulfilled or (to the extent permitted by applicable law) waived.

The Shares. The Company has or will have duly authorized and reserved for issuance,
and covenants to continue to so reserve once reserved for issuance, free of all preemptive and
other similar rights, at all times during the Investment Period, the requisite aggregate number of
authorized but unissued shares of its Common Stock to timely effect the issuance, sale and delivery
in full to the Investor of all Shares to be issued in respect of all Fixed Requests and Optional
Amounts under this Agreement, in any case prior to the issuance to the Investor of such Shares.

Current Report; Prospectus Supplement. As soon as practicable, but in any event not
later than 5:30 p.m. (New York time) on the first Trading Day immediately following the Effective
Date, the Company shall file with the Commission a report on Form 8-K relating to the transactions
contemplated by, and describing the material terms and conditions of, this Agreement and disclosing
all information relating to the transactions contemplated hereby required to be disclosed in the
Registration Statement and the Base Prospectus (but which permissibly has been omitted therefrom in
accordance with the Securities Act), including, without limitation, information required to be
disclosed in the section captioned “Plan of Distribution” in the Base Prospectus (the “Current
Report”). The Current Report shall include a copy of this Agreement as an exhibit. To the
extent applicable, the Current Report shall be incorporated by reference in the Registration
Statement in accordance with the provisions of Rule 430B under the Securities Act. The Company
heretofore has provided the Investor a reasonable opportunity to comment on a draft of such Current
Report and has given due consideration to such comments. The Company shall file a final Base
Prospectus pursuant to Rule 424(b) under the Securities Act on or prior to the second Trading Day
immediately following the Effective Date. Pursuant to Section 5.9 and subject to the provisions of
Section 5.8, on the first Trading Day immediately following the last Trading Day of each Pricing
Period, the Company shall file with the Commission a Prospectus Supplement pursuant to Rule 424(b)
under the Securities Act disclosing the number of Shares to be issued and sold to the Investor
thereunder, the total purchase price therefor and the net proceeds to be received by the Company
therefrom and, to the extent required by the Securities Act, identifying the Current Report.

FIXED REQUEST TERMS; OPTIONAL AMOUNT

Subject to the satisfaction of the conditions set forth in this Agreement, the parties agree
(unless otherwise mutually agreed upon by the parties in writing) as follows:

Fixed Request Notice. The Company may, from time to time in its sole discretion, no
later than 9:30 a.m. (New York time) on the second Trading Day immediately preceding the first
Trading Day of the Pricing Period, provide to the Investor a Fixed Request notice, substantially in
the form attached hereto as Exhibit A (the “Fixed Request Notice”), which Fixed
Request Notice shall become effective at 9:30 a.m. (New York time) on the first Trading Day of the
Pricing Period specified in the Fixed Request Notice. The Fixed Request Notice shall specify the
Fixed Amount Requested, establish the Threshold Price for such Fixed Request, designate the first
and last Trading Day of the Pricing Period and specify the Optional Amount, if any, that the
Company elects to grant to the Investor during the Pricing Period and the applicable Threshold
Price for such Optional Amount (the “Optional Amount Threshold Price”). The Threshold
Price and the Optional Amount Threshold Price established by the Company in a Fixed Request Notice
may be the same or different, in the Company’s sole discretion. Upon the terms and subject to the
conditions of this Agreement, the Investor is obligated to accept each Fixed Request Notice
prepared and delivered in accordance with the provisions of this Agreement.

Fixed Requests. From time to time during the Investment Period, the Company may in
its sole discretion deliver to the Investor a Fixed Request Notice for a specified Fixed Amount
Requested, and the applicable discount price (the “Discount Price”) shall be determined, in
accordance with the price and share amount parameters as set forth below or such other parameters
mutually agreed upon by the Investor and the Company, and upon the terms and subject to the
conditions of this Agreement, the Investor shall purchase from the Company the Shares subject to
such Fixed Request Notice at the Discount Price; provided, however, that (i) if an
ex-dividend date is established by the Trading Market in respect of the Common Stock on or between
the first Trading Day of the applicable Pricing Period and the applicable Settlement Date, the
Discount Price shall be reduced by the per share dividend amount and (ii) the Company may not
deliver any single Fixed Request Notice for a Fixed Amount Requested in excess of the lesser of (a)
the amount in the applicable Fixed Amount Requested column below and (b) 2.5% of the Market
Capitalization:

	 	 	 	 	 
	Threshold Price	 	Fixed Amount Requested	 	Discount Price
	Equal to or greater than $8.00

	 	Not to exceed $6,400,000
	 	96.00% of the VWAP
	Equal to or greater than $7.00 and less than $8.00

	 	Not to exceed $5,600,000
	 	96.00% of the VWAP
	Equal to or greater than $6.00 and less than $7.00

	 	Not to exceed $4,800,000
	 	95.80% of the VWAP
	Equal to or greater than $5.00 and less than $6.00

	 	Not to exceed $4,000,000
	 	95.60% of the VWAP
	Equal to or greater than $4.50 and less than $5.00

	 	Not to exceed $3,600,000
	 	95.50% of the VWAP
	Equal to or greater than $4.00 and less than $4.50

	 	Not to exceed $3,200,000
	 	95.40% of the VWAP
	Equal to or greater than $3.50 and less than $4.00

	 	Not to exceed $2,800,000
	 	95.30% of the VWAP
	Equal to or greater than $3.00 and less than $3.50

	 	Not to exceed $2,400,000
	 	95.20% of the VWAP
	Equal to or greater than $2.75 and less than $3.00

	 	Not to exceed $2,200,000
	 	95.10% of the VWAP
	Equal to or greater than $2.50 and less than $2.75

	 	Not to exceed $2,000,000
	 	95.00% of the VWAP
	Equal to or greater than $2.00 and less than $2.50

	 	Not to exceed $1,600,000
	 	94.50% of the VWAP
	Equal to or greater than $1.50 and less than $2.00

	 	Not to exceed $1,200,000
	 	94.00% of the VWAP
	Equal to or greater than $1.00 and less than $1.50

	 	Not to exceed $800,000
	 	94.00% of the VWAP

Anything to the contrary in this Agreement notwithstanding, at no time shall the Investor
be required to purchase more than $6,400,000 worth of Common Stock in respect of any Pricing Period
(not including Common Stock subject to any Optional Amount). The date on which the Company
delivers any Fixed Request Notice in accordance with this Section 2.2 hereinafter shall be referred
to as a “Fixed Request Exercise Date”.

Share Calculation. With respect to the Trading Days during the applicable Pricing
Period for which the VWAP equals or exceeds the Threshold Price, the number of Shares to be issued
by the Company to the Investor pursuant to a Fixed Request shall equal the aggregate sum of each
quotient (calculated for each Trading Day during the applicable Pricing Period for which the VWAP
equals or exceeds the Threshold Price) determined pursuant to the following equation (rounded to
the nearest whole Share):

	 	 	 	 	 
	N
	 	=
	 	(A x B)/C, where:

	N

A
	 	=

=
	 	the number of Shares to be issued by the Company to the Investor in

respect of a Trading Day during the applicable Pricing Period for

which the VWAP equals or exceeds the Threshold Price,

0.10 (the “Multiplier”),

	 	 	 	 	 

	B

C
	 	=

=
	 	the total Fixed Amount Requested, and

the applicable Discount Price.

Limitation of Fixed Requests. The Company shall not make more than one Fixed Request
in each Pricing Period. Not less than five Trading Days shall elapse between the end of one
Pricing Period and the commencement of any other Pricing Period during the Investment Period.
There shall be permitted a maximum of 24 Fixed Requests during the Investment Period. Each Fixed
Request automatically shall expire immediately following the last Trading Day of each Pricing
Period.

Reduction of Commitment. On the Settlement Date with respect to a Pricing Period, the
Investor’s Total Commitment under this Agreement automatically (and without the need for any
amendment to this Agreement) shall be reduced, on a dollar-for-dollar basis, by the total amount of
the Fixed Request Amount and the Optional Amount Dollar Amount, if any, for such Pricing Period
paid to the Company at such Settlement Date.

Below Threshold Price. If the VWAP on any Trading Day in a Pricing Period is lower
than the Threshold Price, then for each such Trading Day the Fixed Amount Requested shall be
reduced, on a dollar-for-dollar basis, by an amount equal to the product of (x) the Multiplier and
(y) the total Fixed Amount Requested, and no Shares shall be purchased or sold with respect to such
Trading Day, except as provided below. If trading in the Common Stock on NASDAQ (or any other U.S.
national securities exchange on which the Common Stock is then listed) is suspended for any reason
for more than three hours on any Trading Day, the Investor may at its option deem the price of the
Common Stock to be lower than the Threshold Price for such Trading Day and, for each such Trading
Day, the total amount of the Fixed Amount Requested shall be reduced as provided in the immediately
preceding sentence, and no Shares shall be purchased or sold with respect to such Trading Day,
except as provided below. For each Trading Day during a Pricing Period on which the VWAP is lower
(or is deemed to be lower as provided in the immediately preceding sentence) than the Threshold
Price, the Investor may in its sole discretion elect to purchase such U.S. dollar amount of Shares
equal to the amount by which the Fixed Amount Requested has been reduced in accordance with this
Section 2.6, at the Threshold Price multiplied by the applicable percentage determined in
accordance with the price and share amount parameters set forth in Section 2.2. The Investor shall
inform the Company via facsimile transmission not later than 8:00 p.m. (New York time) on the last
Trading Day of such Pricing Period as to the number of Shares, if any, the Investor elects to
purchase as provided in this Section 2.6.

Settlement. The payment for, against simultaneous delivery of, Shares in respect of
each Fixed Request shall be settled on the second Trading Day next following the last Trading Day
of each Pricing Period, or on such earlier date as the parties may mutually agree (the
“Settlement Date”). On each Settlement Date, the Company shall deliver the Shares
purchased by the Investor to the Investor or its designees via DTC’s Deposit/Withdrawal at
Custodian (DWAC) system, against simultaneous payment therefor to the Company’s designated account
by wire transfer of immediately available funds, provided that if the Shares are received
by the Investor later than 1:00 p.m. (New York time), payment therefor shall be made with next day
funds. As set forth in Section 9.1(ii), a failure by the Company to deliver such Shares shall
result in the payment of liquidated damages by the Company to the Investor.

Reduction of Pricing Period. If during a Pricing Period the Company elects to reduce
the number of Trading Days in such Pricing Period (and thereby amend its previously delivered Fixed
Request Notice), the Company shall so notify the Investor before 9:00 a.m. (New York time) on any
Trading Day during a Pricing Period (a “Reduction Notice”) and the last Trading Day of such
Pricing Period shall be the Trading Day immediately preceding the Trading Day on which the Investor
received such Reduction Notice; provided, however, that if the Company delivers the
Reduction Notice later than 9:00 a.m. (New York time) on a Trading Day during a Pricing Period,
then the last Trading Day of such Pricing Period instead shall be the Trading Day on which the
Investor received such Reduction Notice.

Upon receipt of a Reduction Notice, the Investor (i) shall purchase the Shares in respect of
each Trading Day in such reduced Pricing Period for which the VWAP equals or exceeds the Threshold
Price in accordance with Section 2.3 hereof; (ii) may elect to purchase the Shares in respect of
any Trading Day in such reduced Pricing Period for which the VWAP is (or is deemed to be) lower
than the Threshold Price in accordance with Section 2.6 hereof; and (iii) may elect to exercise all
or any portion of an Optional Amount on any Trading Day during such reduced Pricing Period in
accordance with Sections 2.10 and 2.11 hereof.

In addition, upon receipt of a Reduction Notice, the Investor may elect to purchase such U.S.
dollar amount of additional Shares equal to the product determined pursuant to the following
equation:

	 	 	 	 	 
	D
	 	=
	 	(A/B) x (B – C), where:

	D

A

B

C
	 	=

=

=

=
	 	the U.S. dollar amount of additional Shares to be purchased,

the Fixed Amount Requested,

10 or, for purposes of this Section 2.8, such lesser number of

Trading Days as the parties may mutually agree to, and

the number of Trading Days in the reduced Pricing Period,

at a per Share price equal to (x) the Fixed Amount Requested attributable to the reduced Pricing
Period divided by (y) the number of Shares to be purchased during such reduced Pricing Period
pursuant to clauses (i) and (ii) (as applicable) of the immediately preceding paragraph.

The Investor may also elect to exercise any portion of the applicable Optional Amount which
was unexercised during the reduced Pricing Period by issuing an Optional Amount Notice to the
Company not later than 10:00 a.m. (New York time) on the first Trading Day next following the last
Trading Day of the reduced Pricing Period. The number of Shares to be issued upon exercise of such
Optional Amount shall be calculated pursuant to the equation set forth in Section 2.10 hereof,
except that “C” shall equal the greater of (i) the VWAP for the Common Stock on the last Trading
Day of the reduced Pricing Period or (ii) the Optional Amount Threshold Price.

The payment for, against simultaneous delivery of, Shares to be purchased and sold in
accordance with this Section 2.8 shall be settled on the second Trading Day next following the
Trading Day on which the Investor receives a Reduction Notice.

Optional Amount. With respect to any Pricing Period, the Company may in its sole
discretion grant to the Investor the right to exercise, from time to time during the Pricing Period
(but not more than once on any Trading Day), all or any portion of an Optional Amount. The maximum
Optional Amount Dollar Amount and the Optional Amount Threshold Price shall be set forth in the
Fixed Request Notice. If an ex-dividend date is established by the Trading Market in respect of
the Common Stock on or between the first Trading Day of the applicable Pricing Period and the
applicable Settlement Date, the applicable exercise price in respect of the Optional Amount shall
be reduced by the per share dividend amount. Each daily Optional Amount exercise shall be
aggregated during the Pricing Period and settled on the next Settlement Date. The Optional Amount
Threshold Price designated by the Company in its Fixed Request Notice shall apply to each Optional
Amount exercised during the applicable Pricing Period.

Calculation of Optional Amount Shares. The number of shares of Common Stock to be
issued in connection with the exercise of an Optional Amount shall be the quotient determined
pursuant to the following equation (rounded to the nearest whole Share):

	 	 	 	 	 
	O
	 	=
	 	A/(B x C), where:

	O

A

B

C
	 	=

=

=

=
	 	the number of shares of Common Stock to be issued in connection

with such Optional Amount exercise,

the Optional Amount Dollar Amount with respect to which the

Investor has delivered an Optional Amount Notice,

the applicable percentage determined in accordance with the price

and shares amount parameters set forth in Section 2.2 (with the

Optional Amount Threshold Price serving as the Threshold Price for

such purposes), and

the greater of (i) the VWAP for the Common Stock on the day the

Investor delivers the Optional Amount Notice or (ii) the Optional

Amount Threshold Price.

Exercise of Optional Amount. If granted by the Company to the Investor with respect
to a Pricing Period, all or any portion of the Optional Amount may be exercised by the Investor on
any Trading Day during the Pricing Period, subject to the limitations set forth in Section 2.9. As
a condition to each exercise of an Optional Amount pursuant to this Section 2.11, the Investor
shall issue an Optional Amount Notice to the Company no later than 8:00 p.m. (New York time) on the
day of such Optional Amount exercise. If the Investor does not exercise an Optional Amount in full
by 8:00 p.m. (New York time) on the last Trading Day of the applicable Pricing Period, such
unexercised portion of the Investor’s Optional Amount with respect to that Pricing Period
automatically shall lapse and terminate.

Aggregate Limit. Notwithstanding anything to the contrary contained in this
Agreement, in no event may the Company issue a Fixed Request Notice or grant an Optional Amount to
the extent that the sale of Shares pursuant thereto and pursuant to all prior Fixed Request Notices
and Optional Amounts issued hereunder would cause the Company to sell or the Investor to purchase
Shares which in the aggregate are in excess of the Aggregate Limit. If the Company issues a Fixed
Request Notice or Optional Amount that otherwise would permit the Investor to purchase shares of
Common Stock which would cause the aggregate purchases by Investor hereunder to exceed the
Aggregate Limit, such Fixed Request Notice or Optional Amount shall be void ab initio to the extent
of the amount by which the dollar value of shares or number of shares, as the case may be, of
Common Stock otherwise issuable pursuant to such Fixed Request Notice or Optional Amount together
with the dollar value of shares or number of shares, as the case may be, of all other Common Stock
purchased by the Investor pursuant hereto would exceed the Aggregate Limit. The Company hereby
represents, warrants and covenants that neither it nor any of its Subsidiaries (i) has effected any
transaction or series of transactions, (ii) is a party to any pending transaction or series of
transactions or (iii) shall enter into any contract, agreement, agreement-in-principle, arrangement
or understanding with respect to, or shall effect, any Other Financing which, in any of such cases,
may be aggregated with the transactions contemplated by this Agreement for purposes of determining
whether approval of the Company’s stockholders is required under any bylaw, listed securities
maintenance standards or other rules of the Trading Market; provided, however, that
the Company shall be permitted to take any action referred to in clause (iii) above if (a) the
Company has timely provided the Investor with an Integration Notice as provided in Section 5.6(ii)
hereof and (b) unless the Investor has previously terminated this Agreement pursuant to Section
7.2, the Company obtains any requisite stockholder approval prior to the closing of such Other
Financing.

At the Company’s sole discretion, and effective automatically upon delivery of notice by the
Company to the Investor, this Agreement may be amended by the Company from time to time to reduce
the Aggregate Limit by a specified dollar amount and/or number of shares of Common Stock as shall
be determined by the Company in its sole discretion; provided, however, that any
such amendment of this Agreement (and any such purported amendment) shall be void and of no force
and effect if the effect thereof would restrict, materially delay, conflict with or impair the
ability or right of the Company to perform its obligations under this Agreement, including, without
limitation, the obligation of the Company to deliver the Shares to the Investor in respect of a
previously provided Fixed Request or Optional Amount on the applicable Settlement Date. In the
event the Company shall have elected to reduce the Aggregate Limit as provided in the immediately
preceding sentence, at the Company’s sole discretion, and effective automatically upon delivery of
notice by the Company to the Investor, the Company may subsequently amend this Agreement to
increase the Aggregate Limit up to $10,000,000; provided, however, that in no event
shall the Company be entitled to issue Fixed Requests and grant Optional Amounts during the
remainder of the Investment Period for an aggregate amount greater than the amount obtained by
subtracting (x) the aggregate of all Fixed Request Amounts and Optional Amount Dollar Amounts
covered by all Fixed Requests and Optional Amounts theretofore issued or granted by the Company in
respect of which a settlement has occurred pursuant to Section 2.7 from (y) $10,000,000, subject in
all cases to the Trading Market Limit.

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

The Investor hereby makes the following representations and warranties to the Company:

Organization and Standing of the Investor. The Investor is an international business
company duly organized, validly existing and in good standing under the laws of the British Virgin
Islands.

Authorization and Power. The Investor has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement and to purchase the Shares in
accordance with the terms hereof. The execution, delivery and performance of this Agreement by the
Investor and the consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate action, and no further consent or authorization of the
Investor, its Board of Directors or stockholders is required. This Agreement has been duly
executed and delivered by the Investor. This Agreement constitutes a valid and binding obligation
of the Investor enforceable against it in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership, or similar laws relating to, or affecting generally the enforcement
of, creditor’s rights and remedies or by other equitable principles of general application.

No Conflicts. The execution, delivery and performance by the Investor of this
Agreement and the consummation by the Investor of the transactions contemplated herein do not and
shall not (i) result in a violation of such Investor’s charter documents, bylaws or other
applicable organizational instruments, (ii) conflict with, constitute a default (or an event which,
with notice or lapse of time or both, would become a default) under, or give rise to any rights of
termination, amendment, acceleration or cancellation of, any material agreement, mortgage, deed of
trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the
Investor is a party or is bound, (iii) create or impose any lien, charge or encumbrance on any
property of the Investor under any agreement or any commitment to which the Investor is party or
under which the Investor is bound or under which any of its properties or assets are bound, or (iv)
result in a violation of any federal, state, local or foreign statute, rule, or regulation, or any
order, judgment or decree of any court or governmental agency applicable to the Investor or by
which any of its properties or assets are bound or affected, except, in the case of clauses (ii),
(iii) and (iv), for such conflicts, defaults, terminations, amendments, acceleration, cancellations
and violations as would not, individually or in the aggregate, prohibit or otherwise interfere with
the ability of the Investor to enter into and perform its obligations under this Agreement in any
material respect. The Investor is not required under federal, state, local or foreign law, rule or
regulation to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency in order for it to execute, deliver or perform any of its
obligations under this Agreement or to purchase the Shares in accordance with the terms hereof.

Information. All materials relating to the business, financial condition, management
and operations of the Company and materials relating to the offer and sale of the Shares which have
been requested by the Investor have been furnished or otherwise made available to the Investor or
its advisors (subject to Section 5.12 of this Agreement). The Investor and its advisors have been
afforded the opportunity to ask questions of representatives of the Company. The Investor has
sought such accounting, legal and tax advice as it has considered necessary to make an informed
investment decision with respect to its acquisition of the Shares. The Investor understands that
it (and not the Company) shall be responsible for its own tax liabilities that may arise as a
result of this investment or the transactions contemplated by this Agreement.

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Except as set forth in the disclosure schedule delivered by the Company to the Investor (which
is hereby incorporated by reference in, and constitutes an integral part of, this Agreement) (the
“Disclosure Schedule”), the Company hereby makes the following representations and
warranties to the Investor:

Organization, Good Standing and Power. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware and has the requisite
corporate power and authority to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted. The Company and each Subsidiary is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction in which the
nature of the business conducted or property owned by it makes such qualification necessary, except
for any jurisdiction in which the failure to be so qualified would not have a Material Adverse
Effect.

Authorization, Enforcement. The Company has the requisite corporate power and
authority to enter into and perform this Agreement and to issue and sell the Shares in accordance
with the terms hereof. Except for approvals of the Company’s Board of Directors or a committee
thereof as may be required in connection with any issuance and sale of Shares to the Investor
hereunder (which approvals shall be obtained prior to the delivery of any Fixed Request Notice),
the execution, delivery and performance by the Company of this Agreement and the consummation by it
of the transactions contemplated hereby have been duly and validly authorized by all necessary
corporate action and no further consent or authorization of the Company or its Board of Directors
or stockholders is required. This Agreement has been duly executed and delivered by the Company
and constitutes a valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws
relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other
equitable principles of general application.

Capitalization. The authorized capital stock of the Company and the shares thereof
issued and outstanding are as set forth in the Commission Documents as of the dates reflected
therein. All of the outstanding shares of Common Stock have been duly authorized and validly
issued, and are fully paid and nonassessable. Except as set forth in the Commission Documents, as
of the Effective Date, no shares of Common Stock were entitled to preemptive rights or registration
rights and there were no outstanding options, warrants, scrip, rights to subscribe to, call or
commitments of any character whatsoever relating to, or securities or rights convertible into or
exchangeable for, any shares of capital stock of the Company, other than those issued or granted in
the ordinary course of business. Except as set forth in the Commission Documents, there are no
contracts, commitments, understandings, or arrangements by which the Company is or may become bound
to issue additional shares of the capital stock of the Company or options, securities or rights
convertible into or exchangeable for any shares of capital stock of the Company, other than those
issued or granted in the ordinary course of business. Except for customary transfer restrictions
contained in agreements entered into by the Company to sell restricted securities or as set forth
in the Commission Documents, as of the Effective Date, the Company was not a party to, and it had
no knowledge of, any agreement restricting the voting or transfer of any shares of the capital
stock of the Company. Except as set forth in the Commission Documents, the offer and sale of all
capital stock, convertible or exchangeable securities, rights, warrants or options of the Company
issued prior to the Effective Date complied with all applicable federal and state securities laws,
and no stockholder has any right of rescission or damages or any “put” or similar right with
respect thereto that would have a Material Adverse Effect. The Company has furnished or made
available to the Investor via the Commission’s Electronic Data Gathering, Analysis and Retrieval
System (“EDGAR”) true and correct copies of the Company’s Certificate of Incorporation as
in effect on the Effective Date (the “Charter”), and the Company’s Bylaws as in effect on
the Effective Date (the “Bylaws”).

Issuance of Shares. The Shares to be issued under this Agreement have been or will be
(prior to the delivery of any Fixed Request Notice to the Investor hereunder), duly authorized by
all necessary corporate action on the part of the Company. The Shares, when paid for in accordance
with the terms of this Agreement, shall be validly issued and outstanding, fully paid and
nonassessable and free from all liens, charges, taxes, security interests, encumbrances, rights of
first refusal, preemptive or similar rights and other encumbrances with respect to the issue
thereof.

No Conflicts. The execution, delivery and performance by the Company of this
Agreement and the consummation by the Company of the transactions contemplated herein do not and
shall not (i) result in a violation of any provision of the Company’s Charter or Bylaws, (ii)
conflict with, constitute a default (or an event which, with notice or lapse of time or both, would
become a default) under, or give rise to any rights of termination, amendment, acceleration or
cancellation of, any material agreement, mortgage, deed of trust, indenture, note, bond, license,
lease agreement, instrument or obligation to which the Company or any of its Significant
Subsidiaries is a party or is bound (including, without limitation, any listing agreement with the
Trading Market), (iii) create or impose a lien, charge or encumbrance on any property of the
Company or any of its Significant Subsidiaries under any agreement or any commitment to which the
Company or any of its Significant Subsidiaries is a party or under which the Company or any of its
Significant Subsidiaries is bound or under which any of their respective properties or assets are
bound, or (iv) result in a violation of any federal, state, local or foreign statute, rule,
regulation, order, judgment or decree applicable to the Company or any of its Subsidiaries or by
which any property or asset of the Company or any of its Subsidiaries are bound or affected,
except, in the case of clauses (ii), (iii) and (iv), for such conflicts, defaults, terminations,
amendments, acceleration, cancellations, liens, charges, encumbrances and violations as would not,
individually or in the aggregate, have a Material Adverse Effect. The Company is not required
under federal, state, local or foreign law, rule or regulation to obtain any consent, authorization
or order of, or make any filing or registration with, any court or governmental agency in order for
it to execute, deliver or perform any of its obligations under this Agreement, or to issue and sell
the Shares to the Investor in accordance with the terms hereof (other than any filings which may be
required to be made by the Company with the Commission or the Trading Market subsequent to the
Effective Date, including but not limited to a Prospectus Supplement under Sections 1.4 and 5.9 of
this Agreement, and any registration statement, prospectus or prospectus supplement which has been
or may be filed pursuant to this Agreement).

Commission Documents, Financial Statements. (a) The Common Stock is registered
pursuant to Section 12(b) or 12(g) of the Exchange Act and, except as disclosed in the Commission
Documents, as of the Effective Date the Company had timely filed (giving effect to permissible
extensions in accordance with Rule 12b-25 under the Exchange Act) all Commission Documents. The
Company has delivered or made available to the Investor via EDGAR or otherwise true and complete
copies of the Commission Documents filed with the Commission prior to the Effective Date
(including, without limitation, the 2009 Form 10-K) and has delivered or made available to the
Investor via EDGAR or otherwise true and complete copies of all of the Commission Documents
heretofore incorporated by reference in the Registration Statement and the Prospectus. The Company
has not provided to the Investor any information which, according to applicable law, rule or
regulation, should have been disclosed publicly by the Company but which has not been so disclosed,
other than with respect to the transactions contemplated by this Agreement. As of its filing date,
each Commission Document filed with the Commission and incorporated by reference in the
Registration Statement and the Prospectus (including, without limitation, the 2009 Form 10-K)
complied in all material respects with the requirements of the Securities Act or the Exchange Act,
as applicable, and other federal, state and local laws, rules and regulations applicable to it,
and, as of its filing date (or, if amended or superseded by a filing prior to the Effective Date,
on the date of such amended or superseded filing), such Commission Document did not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. Each Commission Document to be filed with the Commission after the
Effective Date and incorporated by reference in the Registration Statement, the Prospectus and any
Prospectus Supplement required to be filed pursuant to Sections 1.4 and 5.9 hereof during the
Investment Period (including, without limitation, the Current Report), when such document becomes
effective or is filed with the Commission, as the case may be, shall comply in all material
respects with the requirements of the Securities Act or the Exchange Act, as applicable, and other
federal, state and local laws, rules and regulations applicable to it, and shall not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

The financial statements, together with the related notes and schedules, of the Company
included in the Commission Documents comply as to form in all material respects with all applicable
accounting requirements and the published rules and regulations of the Commission and all other
applicable rules and regulations with respect thereto. Such financial statements, together with
the related notes and schedules, have been prepared in accordance with GAAP applied on a consistent
basis during the periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent
they may not include footnotes or may be condensed or summary statements and are subject to normal
year-end audit adjustments), and fairly present in all material respects the financial condition of
the Company and its consolidated Subsidiaries as of the dates thereof and the results of operations
and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).

The Company has timely filed with the Commission and made available to the Investor via EDGAR
or otherwise all certifications and statements required by (x) Rule 13a-14 or Rule 15d-14 under the
Exchange Act or (y) 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002
(“SOXA”)) with respect to all relevant Commission Documents. The Company is in compliance
in all material respects with the provisions of SOXA applicable to it as of the date hereof. The
Company maintains disclosure controls and procedures required by Rule 13a-15 or Rule 15d-15 under
the Exchange Act; such controls and procedures are effective to ensure that all material
information concerning the Company and its Subsidiaries is made known on a timely basis to the
individuals responsible for the timely and accurate preparation of the Company’s Commission filings
and other public disclosure documents. As used in this Section 4.6(c), the term “file” shall be
broadly construed to include any manner in which a document or information is furnished, supplied
or otherwise made available to the Commission.

HoganTaylor LLP, who have expressed their opinions on the audited financial statements and
related schedules included or incorporated by reference in the Registration Statement and the Base
Prospectus are, with respect to the Company, independent public accountants as required by the
Securities Act and is an independent registered public accounting firm within the meaning of SOXA
as required by the rules of the Public Company Accounting Oversight Board.

Subsidiaries. The 2009 Form 10-K sets forth each Subsidiary of the Company as of the
Effective Date, showing its jurisdiction of incorporation or organization and the percentage of the
Company’s ownership of the outstanding capital stock or other ownership interests of such
Subsidiary, and the Company does not have any other Subsidiaries as of the Effective Date.

No Material Adverse Effect. Since December 31, 2009, the Company has not experienced
or suffered any Material Adverse Effect, and there exists no current state of facts, condition or
event which would have a Material Adverse Effect, except (i) as disclosed in any Commission
Documents filed since December 31, 2009 or (ii) continued losses from operations.

Indebtedness. The 2009 Form 10-K sets forth, as of December 31, 2009, all outstanding
secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or
any Subsidiary has commitments through such date. For the purposes of this Agreement,
“Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess
of $10,000,000 (other than trade accounts payable incurred in the ordinary course of business), (b)
all guaranties, endorsements, indemnities and other contingent obligations in respect of
Indebtedness of others in excess of $10,000,000, whether or not the same are or should be reflected
in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; and (c) the present value of any lease payments in excess of $10,000,000 due under leases
required to be capitalized in accordance with GAAP. Except as disclosed in any Commission
Documents, there is no existing or continuing default or event of default in respect of any
Indebtedness of the Company or any of its Subsidiaries.

Title To Assets. Each of the Company and its Subsidiaries has good and marketable
title to all of their respective real and personal property reflected in the Commission Documents,
free of mortgages, pledges, charges, liens, security interests or other encumbrances, except for
those indicated in the Commission Documents or those that would not have a Material Adverse Effect.
All real property leases of the Company are valid and subsisting and in full force and effect in
all material respects.

Actions Pending. There is no action, suit, claim, investigation or proceeding
pending, or to the knowledge of the Company threatened in writing, against the Company or any
Subsidiary which questions the validity of this Agreement or the transactions contemplated hereby
or any action taken or to be taken pursuant hereto or thereto. Except as set forth in the
Commission Documents, there is no action, suit, claim, investigation or proceeding pending, or to
the knowledge of the Company threatened in writing, against or involving the Company, any
Subsidiary or any of their respective properties or assets, or involving any officers or directors
of the Company or any of its Subsidiaries, including, without limitation, any securities class
action lawsuit or stockholder derivative lawsuit, in each case which, if determined adversely to
the Company, its Subsidiary or any officer or director of the Company or its Subsidiaries, would
have a Material Adverse Effect. With respect to each of those certain claims, disputes,
investigations, arbitrations, actions or proceedings under the caption “Item 3. Legal Proceedings”
in Part I of the 2009 Form 10-K, there has been no material event or material change that was
required to be disclosed in a filing under the Exchange Act that has not been so disclosed.

Compliance With Law. The business of the Company and the Subsidiaries has been and is
presently being conducted in compliance with all applicable federal, state, local and foreign
governmental laws, rules, regulations and ordinances, except as set forth in the Commission
Documents and except for such non-compliance which, individually or in the aggregate, would not
have a Material Adverse Effect.

Certain Fees. Except for the placement fee payable by the Company to Reedland Capital
Partners, an Institutional Division of Financial West Group, Member FINRA/SIPC
(“Reedland”), which shall be set forth in a separate engagement letter between the Company
and Reedland (a true and complete fully executed copy of which has heretofore been provided to the
Investor), no brokers, finders or financial advisory fees or commissions shall be payable by the
Company or any Subsidiary (or any of their respective affiliates) with respect to the transactions
contemplated by this Agreement.

Operation of Business. (b) The Company or one or more of its Subsidiaries possesses
such permits, licenses, approvals, consents and other authorizations (collectively,
“Governmental Licenses”) issued by the appropriate federal, state, local or foreign
regulatory agencies or bodies necessary to conduct the business now operated by it, except where
the failure to possess such Governmental Licenses, individually or in the aggregate, would not have
a Material Adverse Effect or as otherwise disclosed in the Commission Documents. The Company and
its Subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses,
except where the failure to so comply, individually or in the aggregate, would not have a Material
Adverse Effect or as otherwise disclosed in the Commission Documents. All of the Governmental
Licenses are valid and in full force and effect, except where the invalidity of such Governmental
Licenses or the failure of such Governmental Licenses to be in full force and effect, individually
or in the aggregate, would not have a Material Adverse Effect or as otherwise disclosed in the
Commission Documents. This Section 4.14 does not relate to environmental matters, such items being
the subject of Section 4.15.

The Company or one or more of its Subsidiaries owns or possesses adequate rights to use the
patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information, systems or
procedures), trademarks, service marks, trade names, trade dress, logos, copyrights and other
intellectual property, including, without limitation, all of the intellectual property described in
the Commission Documents as being owned or licensed by the Company (collectively, “Intellectual
Property”), necessary to carry on the business now operated by it, except where failure to own,
license, or have such rights would not, individually or in the aggregate, have a Material Adverse
Effect. Except as set forth in the Commission Documents, there are no actions, suits or judicial
proceedings pending, or to the Company’s knowledge threatened, relating to patents or proprietary
information to which the Company or any of its Subsidiaries is a party or of which any property of
the Company or any of its Subsidiaries is subject, and neither the Company nor any of its
Subsidiaries has received any notice or is otherwise aware of any infringement of or conflict with
asserted rights of others with respect to any Intellectual Property or of any facts or
circumstances which could render any Intellectual Property invalid or inadequate to protect the
interest of the Company and its Subsidiaries therein, and which infringement or conflict (if the
subject of any unfavorable decision, ruling or finding) or invalidity or inadequacy, individually
or in the aggregate, would have a Material Adverse Effect. Nothing contained in this Section 4.14
shall apply to any proceedings relating to new patents that as of the Effective Date have not been
issued to the Company.

Environmental Compliance. Except as disclosed in the Commission Documents, the
Company and each of its Subsidiaries have obtained all material approvals, authorization,
certificates, consents, licenses, orders and permits or other similar authorizations of all
governmental authorities, or from any other person, that are required under any Environmental Laws,
except for any approvals, authorization, certificates, consents, licenses, orders and permits or
other similar authorizations the failure of which to obtain does not or would not have a Material
Adverse Effect. “Environmental Laws” shall mean all applicable laws relating to the
protection of the environment including, without limitation, all requirements pertaining to
reporting, licensing, permitting, controlling, investigating or remediating emissions, discharges,
releases or threatened releases of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, materials or wastes, whether solid, liquid or gaseous in nature,
into the air, surface water, groundwater or land, or relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of hazardous substances,
chemical substances, pollutants, contaminants or toxic substances, material or wastes, whether
solid, liquid or gaseous in nature. Except for such instances as would not, individually or in the
aggregate, have a Material Adverse Effect, to the Company’s knowledge, there are no past or present
events, conditions, circumstances, incidents, actions or omissions relating to or in any way
affecting the Company or its Subsidiaries that violate or could reasonably be expected to violate
any Environmental Law after the Effective Date or that could reasonably be expected to give rise to
any environmental liability, or otherwise form the basis of any claim, action, demand, suit,
proceeding, hearing, study or investigation (i) under any Environmental Law, or (ii) based on or
related to the manufacture, processing, distribution, use, treatment, storage (including without
limitation underground storage tanks), disposal, transport or handling, or the emission, discharge,
release or threatened release of any hazardous substance.

Material Agreements. Except as set forth in the Commission Documents, neither the
Company nor any Subsidiary of the Company is a party to any written or oral contract, instrument,
agreement commitment, obligation, plan or arrangement, a copy of which would be required to be
filed with the Commission as an exhibit to an annual report on Form 10-K (collectively,
“Material Agreements”). Except as set forth in the Commission Documents, the Company and
each of its Subsidiaries have performed in all material respects all the obligations required to be
performed by them under the Material Agreements, have received no notice of default or an event of
default by the Company or any of its Subsidiaries thereunder and are not aware of any basis for the
assertion thereof, and neither the Company or any of its Subsidiaries nor, to the knowledge of the
Company, any other contracting party thereto are in default under any Material Agreement now in
effect, the result of which would have a Material Adverse Effect. Except as set forth in the
Commission Documents, each of the Material Agreements is in full force and effect, and constitutes
a legal, valid and binding obligation enforceable in accordance with its terms against the Company
and/or any of its Subsidiaries and, to the knowledge of the Company, each other contracting party
thereto, except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to,
or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable
principles of general application.

Transactions With Affiliates. Except as set forth in the Commission Documents, there
are no loans, leases, agreements, contracts, royalty agreements, management contracts, service
arrangements or other continuing transactions exceeding $120,000 between (a) the Company or any
Subsidiary, on the one hand, and (b) any person or entity who would be covered by Item 404(a) of
Regulation S-K, on the other hand. Except as disclosed in the Commission Documents, there are no
outstanding amounts payable to or receivable from, or advances by the Company or any of its
Subsidiaries to, and neither the Company nor any of its Subsidiaries is otherwise a creditor of or
debtor to, any beneficial owner of more than 5% of the outstanding shares of Common Stock, or any
director, employee or affiliate of the Company or any of its Subsidiaries, other than (i)
reimbursement for reasonable expenses incurred on behalf of the Company or any of its Subsidiaries
or (ii) as part of the normal and customary terms of such persons’ employment or service as a
director with the Company or any of its Subsidiaries.

Securities Act; FINRA Rules. The Company has complied with all applicable federal and
state securities laws in connection with the offer, issuance and sale of the Shares hereunder.

The Company has prepared and filed with the Commission in accordance with the provisions of
the Securities Act the Registration Statement, including a base prospectus relating to the Shares.
The Registration Statement was declared effective by order of the Commission on May 22, 2009. As of
the date hereof, no stop order suspending the effectiveness of the Registration Statement has been
issued by the Commission or is continuing in effect under the Securities Act and no proceedings
therefor are pending before or, to the Company’s knowledge, threatened by the Commission. No order
preventing or suspending the use of the Prospectus or any Permitted Free Writing Prospectus has
been issued by the Commission.

The Company satisfies all of the requirements for the use of Form S-3 under the Securities Act
for the offering and sale of the Shares contemplated by this Agreement (without reliance on General
Instruction I.B.6. of Form S-3). The Commission has not notified the Company of any objection to
the use of the form of the Registration Statement pursuant to Rule 401(g)(1) under the Securities
Act. The Registration Statement complied in all material respects on the date on which it was
declared effective by the Commission, and will comply in all material respects at each deemed
effective date with respect to the Investor pursuant to Rule 430B(f)(2) of the Securities Act, with
the requirements of the Securities Act, and the Registration Statement (including the documents
incorporated by reference therein) did not on the date it was declared effective by the Commission,
and shall not at each deemed effective date with respect to the Investor pursuant to Rule
430B(f)(2) of the Securities Act, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading; provided that this representation and warranty does not apply to statements in
or omissions from the Registration Statement made in reliance upon and in conformity with
information relating to the Investor furnished to the Company in writing by or on behalf of the
Investor expressly for use therein. The Registration Statement, as of the Effective Date, meets the
requirements set forth in Rule 415(a)(1)(x) under the Securities Act. The Base Prospectus complied
in all material respects on its date and on the Effective Date, and will comply in all material
respects on each applicable Fixed Request Exercise Date and, when taken together with the
applicable Prospectus Supplement and any applicable Permitted Free Writing Prospectus, on each
applicable Settlement Date, with the requirements of the Securities Act and did not on its date and
on the Effective Date and shall not on each applicable Fixed Request Exercise Date and, when taken
together with the applicable Prospectus Supplement and any applicable Permitted Free Writing
Prospectus, on each applicable Settlement Date contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that this representation and warranty does not apply to statements in or omissions
from the Base Prospectus made in reliance upon and in conformity with information relating to the
Investor furnished to the Company in writing by or on behalf of the Investor expressly for use
therein.

The offering of the Shares pursuant to this Agreement qualifies for the exemption from the
filing requirements of Rule 5110 of the Financial Industry Regulatory Authority (the
“FINRA”) afforded by FINRA Rule 5110(b)(7)(C)(i).

Each Prospectus Supplement required to be filed pursuant to Sections 1.4 and 5.9 hereof, when
taken together with the Base Prospectus and any applicable Permitted Free Writing Prospectus, on
its date and on the applicable Settlement Date, shall comply in all material respects with the
provisions of the Securities Act and shall not on its date and on the applicable Settlement Date
contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under
which they are made, not misleading, except that this representation and warranty does not apply to
statements in or omissions from any Prospectus Supplement made in reliance upon and in conformity
with information relating to the Investor furnished to the Company in writing by or on behalf of
the Investor expressly for use therein.

At the earliest time after the filing of the Registration Statement that the Company or
another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the
Securities Act) relating to the Shares, the Company was not and is not an “ineligible issuer” (as
defined in Rule 405 under the Securities Act). Each Permitted Free Writing Prospectus (a) shall
conform in all material respects to the requirements of the Securities Act on the date of its first
use, (b) when considered together with the Prospectus on each applicable Fixed Request Exercise
Date and on each applicable Settlement Date, shall not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they are made, not misleading,
and (c) shall not include any information that conflicts with the information contained in the
Registration Statement, including any document incorporated by reference therein and any Prospectus
Supplement deemed to be a part thereof that has not been superseded or modified. The immediately
preceding sentence does not apply to statements in or omissions from any Permitted Free Writing
Prospectus made in reliance upon and in conformity with information relating to the Investor
furnished to the Company in writing by or on behalf of the Investor expressly for use therein.

Prior to the Effective Date, the Company has not distributed any offering material in
connection with the offering and sale of the Shares. From and after the Effective Date and prior
to the completion of the distribution of the Shares, the Company shall not distribute any offering
material in connection with the offering and sale of the Shares, other than the Registration
Statement, the Base Prospectus as supplemented by any Prospectus Supplement or a Permitted Free
Writing Prospectus.

Employees. As of the Effective Date, neither the Company nor any Subsidiary of the
Company has any collective bargaining arrangements or agreements covering any of its employees,
except as set forth in the Commission Documents. As of the Effective Date, except as disclosed in
the Registration Statement or the Commission Documents, no officer, consultant or key employee of
the Company or any Subsidiary whose termination, either individually or in the aggregate, would
reasonably be expected to have a Material Adverse Effect, has terminated or, to the knowledge of
the Company, has any present intention of terminating his or her employment or engagement with the
Company or any Subsidiary.

Use of Proceeds. The proceeds from the sale of the Shares shall be used by the
Company and its Subsidiaries as set forth in the Base Prospectus and any Prospectus Supplement
filed pursuant to Sections 1.4 and 5.9.

Investment Company Act Status. The Company is not, and as a result of the
consummation of the transactions contemplated by this Agreement and the application of the proceeds
from the sale of the Shares as set forth in the Base Prospectus and any Prospectus Supplement shall
not be, an “investment company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended.

ERISA. No liability to the Pension Benefit Guaranty Corporation has been incurred
with respect to any Plan by the Company or any of its Subsidiaries which has had or would have a
Material Adverse Effect. No “prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) or “accumulated funding deficiency” (as defined in Section 203 of ERISA)
or any of the events set forth in Section 4043(b) of ERISA has occurred with respect to any Plan
which has had or would have a Material Adverse Effect, and the execution and delivery of this
Agreement and the issuance and sale of the Shares hereunder shall not result in any of the
foregoing events. Each Plan is in compliance in all material respects with applicable law,
including ERISA and the Code; the Company has not incurred and does not expect to incur liability
under Title IV of ERISA with respect to the termination of, or withdrawal from, any Plan; and each
Plan for which the Company would have any liability that is intended to be qualified under Section
401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by
action or failure to act, which would cause the loss of such qualifications. As used in this
Section 4.22, the term “Plan” shall mean an “employee pension benefit plan” (as defined in
Section 3 of ERISA) which is or has been established or maintained, or to which contributions are
or have been made, by the Company or any Subsidiary or by any trade or business, whether or not
incorporated, which, together with the Company or any Subsidiary, is under common control, as
described in Section 414(b) or (c) of the Code.

Taxes. The Company (i) has filed all necessary federal, state and foreign income and
franchise tax returns or has duly requested extensions thereof, except for those the failure of
which to file would not have a Material Adverse Effect, (ii) has paid all federal, state, local and
foreign taxes due and payable for which it is liable, except to the extent that any such taxes are
being contested in good faith and by appropriate proceedings, except for such taxes the failure of
which to pay would not have a Material Adverse Effect, and (iii) does not have any tax deficiency
or claims outstanding or assessed or, to the Company’s knowledge, proposed against it which would
have a Material Adverse Effect.

Insurance. The Company carries, or is covered by, insurance in such amounts and
covering such risks as the Company deems is adequate for the conduct of its and its Subsidiaries’
businesses and the value of their respective properties and as is customary for companies engaged
in similar businesses in similar industries.

Acknowledgement Regarding Investor’s Purchase of Shares. The Company acknowledges and
agrees that the Investor is acting solely in the capacity of an arm’s length purchaser with respect
to this Agreement and the transactions contemplated hereunder. The Company further acknowledges
that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to this Agreement and the transactions contemplated hereunder, and
any advice given by the Investor or any of its representatives or agents in connection with this
Agreement and the transactions contemplated hereunder is merely incidental to the Investor’s
purchase of the Shares.

COVENANTS

The Company covenants with the Investor, and the Investor covenants with the Company, as
follows, which covenants of one party are for the benefit of the other party, during the Investment
Period:

Securities Compliance. The Company shall notify the Commission and the Trading
Market, as necessary, in accordance with their respective rules and regulations, of the
transactions contemplated by this Agreement, and shall take all necessary action, undertake all
proceedings and obtain all registrations, permits, consents and approvals for the legal and valid
issuance of the Shares to the Investor in accordance with the terms of this Agreement.

Registration and Listing. The Company shall take all action necessary to cause the
Common Stock to continue to be registered as a class of securities under Sections 12(b) or 12(g) of
the Exchange Act, shall comply with its reporting and filing obligations under the Exchange Act,
and shall not take any action or file any document (whether or not permitted by the Securities Act)
to terminate or suspend such registration or to terminate or suspend its reporting and filing
obligations under the Exchange Act or Securities Act, except as permitted herein. The Company shall
take all action necessary to continue the listing and trading of its Common Stock and the listing
of the Shares purchased by Investor hereunder on the Trading Market (including, without limitation,
maintaining sufficient tangible net assets), and shall comply with the Company’s reporting, filing
and other obligations under the bylaws, listed securities maintenance standards and other rules and
regulations of the FINRA and the Trading Market. The Company shall not take any action which could
reasonably be expected to result in the delisting or suspension of the Common Stock on the Trading
Market.

Compliance with Laws.

The Company shall comply, and cause each Subsidiary to comply, (a) with all laws, rules,
regulations and orders applicable to the business and operations of the Company and its
Subsidiaries except as would not have a Material Adverse Effect and (b) with all applicable
provisions of the Securities Act, the Exchange Act, the rules and regulations of the FINRA and the
listing standards of the Trading Market. Without limiting the generality of the foregoing, neither
the Company nor any of its officers, directors or affiliates has taken or will take, directly or
indirectly, any action designed or intended to stabilize or manipulate the price of any security of
the Company, or which caused or resulted in, or which would in the future reasonably be expected to
cause or result in, stabilization or manipulation of the price of any security of the Company.

The Investor shall comply with all laws, rules, regulations and orders applicable to the
performance by it of its obligations under this Agreement and its investment in the Shares, except
as would not, individually or in the aggregate, prohibit or otherwise interfere with the ability of
the Investor to enter into and perform its obligations under this Agreement in any material
respect. Without limiting the foregoing, the Investor shall comply with all applicable provisions
of the Securities Act and the Exchange Act.

Keeping of Records and Books of Account; Foreign Corrupt Practices Act.

The Company shall keep and cause each Subsidiary to keep adequate records and books of
account, in which complete entries shall be made in accordance with GAAP consistently applied,
reflecting all financial transactions of the Company and its Subsidiaries, and in which, for each
fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes,
bad debts and other purposes in connection with its business shall be made. The Company shall
maintain a system of internal accounting controls that (a) pertain to the maintenance of records
that in reasonable detail accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (b) provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Company are being made only in accordance
with authorizations of management and directors of the Company; and (c) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition
of the Company’s assets that could have a material effect on the Company’s financial statements.

Neither the Company, nor any of its Subsidiaries, nor to the knowledge of the Company, any of
their respective directors, officers, agents, employees or any other persons acting on their behalf
shall, in connection with the operation of the Company’s and its Subsidiaries’ respective
businesses, (a) use any corporate funds for unlawful contributions, payments, gifts or
entertainment or to make any unlawful expenditures relating to political activity to government
officials, candidates or members of political parties or organizations, (b) pay, accept or receive
any unlawful contributions, payments, expenditures or gifts, or (c) violate or operate in
noncompliance with any export restrictions, anti-boycott regulations, embargo regulations or other
applicable domestic or foreign laws and regulations, except for such violations or noncompliant
operations that would not likely result in a Material Adverse Effect.

Subject to the requirements of Section 5.12 of this Agreement, from time to time from and
after the period beginning with the third Trading Day immediately preceding each Fixed Request
Exercise Date through and including the applicable Settlement Date, the Company shall make
available for inspection and review by the Investor, customary documentation allowing the Investor
and/or its appointed counsel or advisors to conduct due diligence.

Limitations on Holdings and Issuances.

(i) The Company shall not be obligated to issue and the Investor shall not be obligated to
purchase any shares of Common Stock which, when aggregated with all other shares of Common Stock
then owned beneficially (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3
promulgated thereunder) by the Investor, would result in the beneficial ownership by the Investor
of more than 4.9% of the then issued and outstanding shares of Common Stock.

(ii) Neither the Investor nor any of its Tax Affiliates will at any time, directly, together
with or through Persons who have a formal or informal understanding to make a coordinated
acquisition of Common Stock with the Investor or its Tax Affiliates, acquire, offer to acquire, or
agree to acquire, by purchase or otherwise, shares of Common Stock which, when aggregated with all
other shares of Common Stock then owned beneficially (as calculated pursuant to Section 13(d) of
the Exchange Act and Rule 13d-3 promulgated thereunder) by the Investor and its Tax Affiliates,
would result in the beneficial ownership by the Investor of more than 4.9% of the then issued and
outstanding shares of Common Stock.

Other Agreements and Other Financings.

The Company shall not enter into, announce or recommend to its stockholders any agreement,
plan, arrangement or transaction in or of which the terms thereof would restrict, materially delay,
conflict with or impair the ability or right of the Company or any Subsidiary to perform its
obligations under this Agreement, including, without limitation, the obligation of the Company to
deliver the Shares to the Investor in respect of a Fixed Request or Optional Amount on the
applicable Settlement Date.

The Company shall notify the Investor, within 48 hours, if it enters into any agreement, plan,
arrangement or transaction with a third party, the principal purpose of which is to obtain during a
Pricing Period an Other Financing not constituting an Acceptable Financing (an “Other Financing
Notice”); provided, however, that the Company shall notify the Investor
promptly (but in no event later than 24 hours) (an “Integration Notice”) if it enters into
any agreement, plan, arrangement or transaction with a third party, the principal purpose of which
is to obtain at any time during the Investment Period an Other Financing that may be aggregated
with the transactions contemplated by this Agreement for purposes of determining whether approval
of the Company’s stockholders is required under any bylaw, listed securities maintenance standards
or other rules of the Trading Market and, if required under applicable law, including, without
limitation, Regulation FD promulgated by the Commission, or under the applicable rules and
regulations of the Trading Market, the Company shall publicly disclose such information in
accordance with Regulation FD and the applicable rules and regulations of the Trading Market. For
purposes of this Section 5.6(ii), any press release issued by, or Commission Document filed by, the
Company shall constitute sufficient notice, provided that it is issued or filed, as the
case may be, within the time requirements set forth in the first sentence of this Section 5.6(ii)
for an Other Financing Notice or an Integration Notice, as applicable. For greater certainty, the
entry by the Company into any agreement, plan, arrangement or transaction with a third party to
obtain an Other Financing (or any other financing) outside of a Pricing Period shall not trigger
any requirement for the Company to deliver an Other Financing Notice (it being acknowledged and
agreed that nothing contained in this Section 5.6(ii) shall limit or modify in any respect the
Company’s obligations in Section 7.2). During any Pricing Period in which the Company is required
to provide an Other Financing Notice pursuant to the first sentence of this Section 5.6(ii), the
Investor shall (i) have the option to purchase the Shares subject to the Fixed Request at (x) the
price therefor in accordance with the terms of this Agreement or (y) the third party’s per share
purchase price in connection with the Other Financing, net of such third party’s discounts, Warrant
Value and fees, or (ii) the Investor may elect to not purchase any Shares subject to the Fixed
Request for that Pricing Period. An “Other Financing” shall mean (x) the issuance of Common
Stock for a purchase price less than, or the issuance of securities convertible into or
exchangeable for Common Stock at an exercise or conversion price (as the case may be) less than,
the then Current Market Price of the Common Stock (in each case, after all fees, discounts, Warrant
Value and commissions associated with the transaction) (a “Below Market Offering”); (y) the
implementation by the Company of any mechanism in respect of any securities convertible into or
exchangeable for Common Stock for the reset of the purchase price of the Common Stock to below the
then Current Market Price of the Common Stock (including, without limitation, any antidilution or
similar adjustment provisions in respect of any Company securities, but specifically excluding
customary adjustments for stock splits, stock dividends, stock combinations and similar events); or
(z) the issuance of options, warrants or similar rights of subscription, in each case, not
constituting an Acceptable Financing. “Acceptable Financing” shall mean the issuance by the
Company of: (1) shares of Common Stock or securities convertible into or exercisable or
exchangeable for Common Stock other than in connection with a Below Market Offering; (2) shares of
Common Stock or securities convertible into or exercisable or exchangeable for Common Stock in
connection with awards under the Company’s benefit and equity plans and arrangements or shareholder
rights plan and the issuance of shares of Common Stock upon the conversion, exercise or exchange
thereof; (3) shares of Common Stock issuable upon the conversion, exercise or exchange of equity
awards or convertible, exercisable or exchangeable securities either outstanding as of the
Effective Date or as to which the exercise or conversion price (as the case may be) was not less
than the Current Market Price of the Common Stock on the date such convertible, exercisable or
exchangeable securities were issued; (4) shares of Common Stock or securities convertible into or
exercisable or exchangeable for Common Stock or similar rights to subscribe for the purchase of
shares of Common Stock in connection with technology sharing, licensing, research and joint
development agreements (or amendments thereto) with third parties, and the issuance of shares of
Common Stock upon the conversion, exercise or exchange thereof; and (5) shares of Common Stock
and/or warrants or similar rights to subscribe for the purchase of shares of Common Stock issued in
connection with equipment financings and/or real property leases (or amendments thereto) and the
issuance of shares of Common Stock upon the exercise thereof.

Stop Orders. The Company shall advise the Investor promptly (but in no event later
than 24 hours) and shall confirm such advice in writing: (i) of the Company’s receipt of notice of
any request by the Commission for amendment of or a supplement to the Registration Statement, the
Prospectus, any Permitted Free Writing Prospectus or for any additional information; (ii) of the
Company’s receipt of notice of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or prohibiting or suspending the use of the Prospectus
or any Prospectus Supplement, or of the suspension of qualification of the Shares for offering or
sale in any jurisdiction, or the initiation or contemplated initiation of any proceeding for such
purpose; and (iii) of the Company becoming aware of the happening of any event, which makes any
statement of a material fact made in the Registration Statement, the Prospectus or any Permitted
Free Writing Prospectus untrue or which requires the making of any additions to or changes to the
statements then made in the Registration Statement, the Prospectus or any Permitted Free Writing
Prospectus in order to state a material fact required by the Securities Act to be stated therein or
necessary in order to make the statements then made therein (in the case of the Prospectus, in
light of the circumstances under which they were made) not misleading, or of the necessity to amend
the Registration Statement or supplement the Prospectus or any Permitted Free Writing Prospectus to
comply with the Securities Act or any other law. The Company shall not be required to disclose to
the Investor the substance or specific reasons of any of the events set forth in clauses (i)
through (iii) of the immediately preceding sentence, but rather, shall only be required to disclose
that the event has occurred. The Company shall not issue any Fixed Request during the continuation
of any of the foregoing events. If at any time the Commission shall issue any stop order suspending
the effectiveness of the Registration Statement or prohibiting or suspending the use of the
Prospectus or any Prospectus Supplement, the Company shall use commercially reasonable efforts to
obtain the withdrawal of such order at the earliest possible time.

Amendments to the Registration Statement; Prospectus Supplements; Free Writing
Prospectuses.

Except as provided in this Agreement and other than periodic reports required to be filed
pursuant to the Exchange Act, the Company shall not file with the Commission any amendment to the
Registration Statement that relates to the Investor, the Agreement or the transactions contemplated
hereby or file with the Commission any Prospectus Supplement that relates to the Investor, this
Agreement or the transactions contemplated hereby with respect to which (a) the Investor shall not
previously have been advised, (b) the Company shall not have given due consideration to any
comments thereon received from the Investor or its counsel, or (c) the Investor shall reasonably
object after being so advised, unless it is necessary to amend the Registration Statement or make
any supplement to the Prospectus to comply with the Securities Act or any other applicable law or
regulation, in which case the Company shall promptly (but in no event later than 24 hours) so
inform the Investor, the Investor shall be provided with a reasonable opportunity to review and
comment upon any disclosure relating to the Investor and the Company shall expeditiously furnish to
the Investor an electronic copy thereof. In addition, for so long as, in the reasonable opinion of
counsel for the Investor, the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a)
under the Securities Act) is required to be delivered in connection with any purchase of Shares by
the Investor, the Company shall not file any Prospectus Supplement with respect to the Shares
without delivering or making available a copy of such Prospectus Supplement, together with the Base
Prospectus, to the Investor promptly.

The Company has not made, and agrees that unless it obtains the prior written consent of the
Investor it will not make, an offer relating to the Shares that would constitute an Issuer Free
Writing Prospectus or that would otherwise constitute a Free Writing Prospectus required to be
filed by the Company or the Investor with the Commission or retained by the Company or the Investor
under Rule 433 under the Securities Act. The Investor has not made, and agrees that unless it
obtains the prior written consent of the Company it will not make, an offer relating to the Shares
that would constitute a Free Writing Prospectus required to be filed by the Company with the
Commission or retained by the Company under Rule 433 under the Securities Act. Any such Issuer
Free Writing Prospectus or other Free Writing Prospectus consented to by the Investor or the
Company is referred to in this Agreement as a “Permitted Free Writing Prospectus.” The
Company agrees that (x) it has treated and will treat, as the case may be, each Permitted Free
Writing Prospectus as an Issuer Free Writing Prospectus and (y) it has complied and will comply, as
the case may be, with the requirements of Rules 164 and 433 under the Securities Act applicable to
any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission,
legending and record keeping.

Prospectus Delivery. The Company shall file with the Commission a Prospectus
Supplement pursuant to Rule 424(b) under the Securities Act on the first Trading Day immediately
following the last Trading Day of each Pricing Period. The Company shall provide the Investor a
reasonable opportunity to comment on a draft of each such Prospectus Supplement and any Issuer Free
Writing Prospectus, shall give due consideration to all such comments and, subject to the
provisions of Section 5.8 hereof, shall deliver or make available to the Investor, without charge,
an electronic copy of each form of Prospectus Supplement, together with the Base Prospectus, and
any Permitted Free Writing Prospectus on each applicable Settlement Date. The Company consents to
the use of the Prospectus (and of any Prospectus Supplement thereto) in accordance with the
provisions of the Securities Act and with the securities or “blue sky” laws of the jurisdictions in
which the Shares may be sold by the Investor, in connection with the offering and sale of the
Shares and for such period of time thereafter as the Prospectus (or in lieu thereof, the notice
referred to in Rule 173(a) under the Securities Act) is required by the Securities Act to be
delivered in connection with sales of the Shares. If during such period of time any event shall
occur that in the judgment of the Company and its counsel is required to be set forth in the
Registration Statement or the Prospectus or any Permitted Free Writing Prospectus or should be set
forth therein in order to make the statements made therein (in the case of the Prospectus, in light
of the circumstances under which they were made) not misleading, or if it is necessary to amend the
Registration Statement or supplement or amend the Prospectus or any Permitted Free Writing
Prospectus to comply with the Securities Act or any other applicable law or regulation, the Company
shall forthwith prepare and, subject to Section 5.8 above, file with the Commission an appropriate
amendment to the Registration Statement or Prospectus Supplement to the Prospectus (or supplement
to the Permitted Free Writing Prospectus) and shall expeditiously furnish or make available to the
Investor an electronic copy thereof.

Selling Restrictions.

Except as expressly set forth below, the Investor covenants that from and after the date
hereof through and including the 90th day next following the termination of this
Agreement (the “Restricted Period”), neither the Investor nor any of its affiliates nor any
entity managed or controlled by the Investor (collectively, the “Restricted Persons” and
each of the foregoing is referred to herein as a “Restricted Person”) shall, directly or
indirectly, (i) intentionally engage in any Short Sales involving the Company’s securities or (ii)
grant any option to purchase, or acquire any right to dispose of or otherwise dispose for value of,
any shares of Common Stock or any securities convertible into or exercisable or exchangeable for
any shares of Common Stock, or enter into any swap, hedge or other similar agreement that
transfers, in whole or in part, the economic risk of ownership of the Common Stock. Notwithstanding
the foregoing, it is expressly understood and agreed that nothing contained herein shall (without
implication that the contrary would otherwise be true) prohibit any Restricted Person during the
Restricted Period from: (1) selling “long” (as defined under Rule 200 promulgated under Regulation
SHO) the Shares; or (2) selling a number of shares of Common Stock equal to the number of Shares
that such Restricted Person is or may be obligated (or has the right) to purchase under a pending
Fixed Request Notice but has not yet taken possession of so long as such Restricted Person (or the
Broker-Dealer, as applicable) delivers the Shares purchased pursuant to such Fixed Request Notice
to the purchaser thereof or the applicable Broker-Dealer; provided, however, such
Restricted Person (or the applicable Broker-Dealer, as applicable) shall not be required to so
deliver any such Shares subject to such Fixed Request Notice if (a) such Fixed Request is
terminated by mutual agreement of the Company and the Investor and, as a result of such
termination, no such Shares are delivered to the Investor under this Agreement or (b) the Company
otherwise fails to deliver such Shares to the Investor on the applicable Settlement Date upon the
terms and subject to the provisions of this Agreement.

In addition to the foregoing, in connection with any sale of the Shares (including any sale
permitted by paragraph (i) above), the Investor shall comply in all respects with all applicable
laws, rules, regulations and orders, including, without limitation, the requirements of the
Securities Act and the Exchange Act.

Effective Registration Statement. During the Investment Period, the Company shall use
its best efforts to maintain the continuous effectiveness of the Registration Statement under the
Securities Act.

Non-Public Information. Neither the Company nor any of its directors, officers or
agents shall disclose any material non-public information about the Company to the Investor, unless
a timely public announcement thereof is made by the Company in the manner contemplated by
Regulation FD.

Broker/Dealer. The Investor shall use one or more broker-dealers to effectuate all
sales, if any, of the Shares that it may purchase from the Company pursuant to this Agreement which
(or whom) shall be unaffiliated with the Investor and not then currently engaged or used by the
Company (collectively, the “Broker-Dealer”). The Investor shall provide the Company with
all information regarding the Broker-Dealer reasonably requested by the Company. The Investor
shall be solely responsible for all fees and commissions of the Broker-Dealer, which shall not
exceed customary brokerage fees and commissions.

Disclosure Schedule.

During the Investment Period, the Company shall from time to time update the Disclosure
Schedule as may be required to satisfy the condition set forth in Section 6.3(i). For purposes of
this Section 5.14, any disclosure made in a schedule to the Compliance Certificate substantially in
the form attached hereto as Exhibit D shall be deemed to be an update of the Disclosure
Schedule. Notwithstanding anything in this Agreement to the contrary, no update to the Disclosure
Schedule pursuant to this Section 5.14 shall cure any breach of a representation or warranty of the
Company contained in this Agreement and shall not affect any of the Investor’s rights or remedies
with respect thereto.

Notwithstanding anything to the contrary contained in the Disclosure Schedules or in this
Agreement, the information and disclosure contained in any Schedule of the Disclosure Schedules
shall be deemed to be disclosed and incorporated by reference in any other Schedule of the
Disclosure Schedules as though fully set forth in such Schedule for which applicability of such
information and disclosure is readily apparent on its face. The fact that any item of information
is disclosed in the Disclosure Schedules shall not be construed to mean that such information is
required to be disclosed by this Agreement. Except as expressly set forth in this Agreement, such
information and the thresholds (whether based on quantity, qualitative characterization, dollar
amounts or otherwise) set forth herein shall not be used as a basis for interpreting the terms
“material” or “Material Adverse Effect” or other similar terms in this Agreement.

OPINION OF COUNSEL AND CERTIFICATE; CONDITIONS TO THE SALE AND

PURCHASE OF THE SHARES

Opinion of Counsel and Certificate. Simultaneously with the execution and delivery of
this Agreement, the Investor’s counsel shall have received (a) an opinion of outside counsel to the
Company, dated the Effective Date, in the form mutually agreed to by the parties hereto and (b) a
certificate from the Company, dated the Effective Date, in the form of Exhibit C hereto.

Conditions Precedent to the Obligation of the Company. The obligation hereunder of
the Company to issue and sell the Shares to the Investor under any Fixed Request or Optional Amount
is subject to the satisfaction or (to the extent permitted by applicable law) waiver of each of the
conditions set forth below. These conditions are for the Company’s sole benefit and (to the extent
permitted by applicable law) may be waived by the Company at any time in its sole discretion.

Accuracy of the Investor’s Representations and Warranties. The representations and
warranties of the Investor contained in this Agreement (a) that are not qualified by “materiality”
shall have been true and correct in all material respects when made and shall be true and correct
in all material respects as of the applicable Fixed Request Exercise Date and the applicable
Settlement Date with the same force and effect as if made on such dates, except to the extent such
representations and warranties are as of another date, in which case, such representations and
warranties shall be true and correct in all material respects as of such other date and (b) that
are qualified by “materiality” shall have been true and correct when made and shall be true and
correct as of the applicable Fixed Request Exercise Date and the applicable Settlement Date with
the same force and effect as if made on such dates, except to the extent such representations and
warranties are as of another date, in which case, such representations and warranties shall be true
and correct as of such other date.

Registration Statement. The Registration Statement is effective and neither the
Company nor the Investor shall have received notice that the Commission has issued or intends to
issue a stop order with respect to the Registration Statement. The Company shall have a maximum
dollar amount certain of Common Stock registered under the Registration Statement which (A) as of
the Effective Date, is sufficient to issue to the Investor not less than the Total Commitment worth
of Shares and (B) as of the applicable Fixed Request Exercise Date and the applicable Settlement
Date, is sufficient to issue to the Investor not less than the maximum dollar amount worth of
Shares issuable pursuant to the applicable Fixed Request Notice and applicable Optional Amount, if
any. The Current Report shall have been filed with the Commission, as required pursuant to Section
1.4, and all Prospectus Supplements shall have been filed with the Commission, as required pursuant
to Sections 1.4 and 5.9 hereof, to disclose the sale of the Shares prior to each Settlement Date,
as applicable. Any other material required to be filed by the Company or any other offering
participant pursuant to Rule 433(d) under the Securities Act shall have been filed with the
Commission within the applicable time periods prescribed for such filings by Rule 433 under the
Securities Act.

Performance by the Investor. The Investor shall have performed, satisfied and
complied in all material respects with all covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by the Investor at or prior to the applicable
Fixed Request Exercise Date and the applicable Settlement Date.

No Injunction. No statute, regulation, order, decree, writ, ruling or injunction
shall have been enacted, entered, promulgated, threatened or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of or which would materially
modify or delay any of the transactions contemplated by this Agreement.

No Suspension, Etc. Trading in the Common Stock shall not have been suspended by the
Commission or the Trading Market (except for any suspension of trading of limited duration agreed
to by the Company, which suspension shall be terminated prior to the applicable Fixed Request
Exercise Date and applicable Settlement Date), and, at any time prior to the applicable Fixed
Request Exercise Date and applicable Settlement Date, none of the events described in clauses (i),
(ii) and (iii) of Section 5.7 shall have occurred, trading in securities generally as reported on
the Trading Market shall not have been suspended or limited, nor shall a banking moratorium have
been declared either by the United States or New York State authorities, nor shall there have
occurred any material outbreak or escalation of hostilities or other national or international
calamity or crisis of such magnitude in its effect on, or any material adverse change in, any
financial, credit or securities market which, in each case, in the reasonable judgment of the
Company, makes it impracticable or inadvisable to issue the Shares.

No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or
any court or governmental authority shall have been commenced or threatened, and no inquiry or
investigation by any governmental authority shall have been commenced or threatened, against the
Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any
Subsidiary, seeking to restrain, prevent or change the transactions contemplated by this Agreement,
or seeking damages in connection with such transactions.

Aggregate Limit. The issuance and sale of the Shares issuable pursuant to such Fixed
Request Notice or Optional Amount shall not violate Sections 2.2, 2.12 and 5.5 hereof.

Conditions Precedent to the Obligation of the Investor. The obligation hereunder of
the Investor to accept a Fixed Request Notice or Optional Amount grant and to acquire and pay for
the Shares is subject to the satisfaction or (to the extent permitted by applicable law) waiver, at
or before each Fixed Request Exercise Date and each Settlement Date, of each of the conditions set
forth below. These conditions are for the Investor’s sole benefit and (to the extent permitted by
applicable law) may be waived by the Investor at any time in its sole discretion.

Accuracy of the Company’s Representations and Warranties. The representations and
warranties of the Company contained in this Agreement (a) that are not qualified by “materiality”
or “Material Adverse Effect” shall have been true and correct in all material respects when made
and shall be true and correct in all material respects as of the applicable Fixed Request Exercise
Date and the applicable Settlement Date with the same force and effect as if made on such dates,
except to the extent such representations and warranties are as of another date, in which case,
such representations and warranties shall be true and correct in all material respects as of such
other date and (b) that are qualified by “materiality” or “Material Adverse Effect” shall have been
true and correct when made and shall be true and correct as of the applicable Fixed Request
Exercise Date and the applicable Settlement Date with the same force and effect as if made on such
dates, except to the extent such representations and warranties are as of another date, in which
case, such representations and warranties shall be true and correct as of such other date.

Registration Statement. The Registration Statement is effective and neither the
Company nor the Investor shall have received notice that the Commission has issued or intends to
issue a stop order with respect to the Registration Statement. The Company shall have a maximum
dollar amount certain of Common Stock registered under the Registration Statement which (A) as of
the Effective Date, is sufficient to issue to the Investor not less than the Total Commitment worth
of Shares and (B) as of the applicable Fixed Request Exercise Date and the applicable Settlement
Date, is sufficient to issue to the Investor not less than the maximum dollar amount worth of
Shares issuable pursuant to the applicable Fixed Request Notice and applicable Optional Amount, if
any. As of the Effective Date, the applicable Fixed Request Exercise Date and the applicable
Settlement Date, the Investor shall be permitted to utilize the Prospectus to resell all of the
Shares it then owns or has the right to acquire pursuant to all Fixed Request Notices issued
pursuant to this Agreement. The Current Report shall have been filed with the Commission, as
required pursuant to Section 1.4, and all Prospectus Supplements shall have been filed with the
Commission, as required pursuant to Sections 1.4 and 5.9 hereof, to disclose the sale of the Shares
prior to each Settlement Date, as applicable, and an electronic copy of each such Prospectus
Supplement together with the Base Prospectus shall have been delivered or made available to the
Investor in accordance with Section 5.9 hereof. Any other material required to be filed by the
Company or any other offering participant pursuant to Rule 433(d) under the Securities Act shall
have been filed with the Commission within the applicable time periods prescribed for such filings
by Rule 433 under the Securities Act.

No Suspension. Trading in the Common Stock shall not have been suspended by the
Commission or the Trading Market (except for any suspension of trading of limited duration agreed
to by the Company, which suspension shall be terminated prior to the applicable Fixed Request
Exercise Date and applicable Settlement Date), and the Company shall not have received any notice
that the listing or quotation of the Common Stock on the Trading Market shall be terminated on a
date certain. At any time prior to the applicable Fixed Request Exercise Date and applicable
Settlement Date, none of the events described in clauses (i), (ii) and (iii) of Section 5.7 shall
have occurred, trading in securities generally as reported on the Trading Market shall not have
been suspended or limited, nor shall a banking moratorium have been declared either by the United
States or New York State authorities, nor shall there have occurred any material outbreak or
escalation of hostilities or other national or international calamity or crisis of such magnitude
in its effect on, or any material adverse change in, any financial, credit or securities market
which, in each case, in the reasonable judgment of the Investor, makes it impracticable or
inadvisable to purchase the Shares.

Performance of the Company. The Company shall have performed, satisfied and complied
in all material respects with all covenants, agreements and conditions required by this Agreement
to be performed, satisfied or complied with by the Company at or prior to the applicable Fixed
Request Exercise Date and the applicable Settlement Date and shall have delivered to the Investor
on the applicable Settlement Date the Compliance Certificate substantially in the form attached
hereto as Exhibit D.

No Injunction. No statute, rule, regulation, order, decree, writ, ruling or injunction
shall have been enacted, entered, promulgated, threatened or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of or which would materially
modify or delay any of the transactions contemplated by this Agreement.

No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or
any court or governmental authority shall have been commenced or threatened, and no inquiry or
investigation by any governmental authority shall have been commenced or threatened, against the
Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any
Subsidiary, seeking to restrain, prevent or change the transactions contemplated by this Agreement,
or seeking damages in connection with such transactions.

Aggregate Limit. The issuance and sale of the Shares issuable pursuant to such Fixed
Request Notice or Optional Amount shall not violate Sections 2.2, 2.12 and 5.5 hereof.

Shares Authorized. The Shares issuable pursuant to such Fixed Request Notice or
Optional Amount shall have been duly authorized by all necessary corporate action of the Company.
The Company shall have delivered all Shares relating to all prior Fixed Request Notices and
Optional Amounts, as applicable.

Listing of Shares. The Company shall have submitted to the Trading Market, at or
prior to the applicable Fixed Request Exercise Date, a notification form of listing of additional
shares related to the Shares issuable pursuant to such Fixed Request and Optional Amount, in
accordance with the bylaws, listed securities maintenance standards and other rules of the Trading
Market and, prior to the applicable Settlement Date, such Shares shall have been approved for
listing or quotation on the Trading Market, subject only to notice of issuance.

Opinion of Counsel; Bring-Down. Subsequent to the filing of the Current Report
pursuant to Section 1.4 and prior to the first Fixed Request Exercise Date, the Investor shall have
received an opinion from outside counsel to the Company in the form mutually agreed to by the
parties hereto. On each Settlement Date, the Investor shall have received an opinion “bring down”
from outside counsel to the Company in the form mutually agreed to by the parties hereto.

Payment of Investor’s Counsel Fees; Due Diligence Expenses. On the Effective Date,
the Company shall have paid by wire transfer of immediately available funds to an account
designated by the Investor’s counsel, the fees and expenses of the Investor’s counsel in accordance
with the proviso to the first sentence of Section 9.1(i) of this Agreement.

TERMINATION

Term, Termination by Mutual Consent. Unless earlier terminated as provided hereunder,
this Agreement shall terminate automatically on the earliest of (i) the first day of the month next
following the 24-month anniversary of the Effective Date (the “Investment Period”), (ii)
the date that the entire dollar amount of Common Stock registered under the Registration Statement
have been issued and sold and (iii) the date the Investor shall have purchased the Total Commitment
of shares of Common Stock (subject in all cases to the Trading Market Limit). Subject to Section
7.3, this Agreement may be terminated at any time by the mutual written consent of the parties,
effective as of the date of such mutual written consent unless otherwise provided in such written
consent, it being hereby acknowledged and agreed that the Investor may not consent to such
termination during a Pricing Period or prior to a Settlement Date in the event the Investor has
instructed the Broker-Dealer to effect an open-market sale of Shares which are subject to a pending
Fixed Request Notice but which have not yet been physically delivered by the Company (and/or
credited by book-entry) to the Investor in accordance with the terms and subject to the conditions
of this Agreement. Subject to Section 7.3, the Company may terminate this Agreement effective upon
three Trading Days’ prior written notice to the Investor delivered in accordance with Section 9.4;
provided, however, that (i) such termination shall not occur during a Pricing
Period or, subsequent to the issuance of a Fixed Request Notice, prior to the Settlement Date
related to such Fixed Request Notice, and (ii) prior to issuing any press release, or making any
public statement or announcement, with respect to such termination, the Company shall consult with
the Investor and shall obtain the Investor’s consent to the form and substance of such press
release or other disclosure, which consent shall not be unreasonably delayed or withheld.

Other Termination. If the Company provides the Investor with an Other Financing
Notice (other than in respect of an underwritten public offering of equity securities of the
Company or a registered direct public offering of equity securities of the Company) or an
Integration Notice, in each case pursuant to Section 5.6(ii) of this Agreement, or if the Company
otherwise enters into any agreement, plan, arrangement or transaction with a third party, the
principal purpose of which is to obtain outside a Pricing Period, but otherwise during the
Investment Period, an Other Financing not constituting an Acceptable Financing (other than in
respect of an underwritten public offering of equity securities of the Company or a registered
direct public offering of equity securities of the Company), in which latter case the Company shall
so notify the Investor within 48 hours thereof, then in all such cases the Investor shall have the
right to terminate this Agreement within the subsequent 30-day period (the “Event Period”),
effective upon one Trading Day’s prior written notice delivered to the Company in accordance with
Section 9.4 at any time during the Event Period. The Company shall immediately notify the Investor
(and, if required under applicable law, including, without limitation, Regulation FD promulgated by
the Commission, or under the applicable rules and regulations of the Trading Market, the Company
shall simultaneously publicly disclose such information in accordance with Regulation FD and the
applicable rules and regulations of the Trading Market), and the Investor shall have the right to
terminate this Agreement at any time after receipt of such notification, if: (i) any condition,
occurrence, state of facts or event constituting a Material Adverse Effect has occurred; (ii) a
Material Change in Ownership has occurred or the Company enters into a definitive agreement
providing for a Material Change in Ownership; or (iii) a default or event of default has occurred
and is continuing under the terms of any agreement, contract, note or other instrument to which the
Company or any of its Subsidiaries is a party with respect to any indebtedness for borrowed money
representing more than 10% of the Company’s consolidated assets, in any such case, upon one Trading
Day’s prior written notice delivered to the Company in accordance with Section 9.4 hereof.

Effect of Termination. In the event of termination by the Company or the Investor
pursuant to Section 7.1 or 7.2, as applicable, written notice thereof shall forthwith be given to
the other party as provided in Section 9.4 and the transactions contemplated by this Agreement
shall be terminated without further action by either party. If this Agreement is terminated as
provided in Section 7.1 or 7.2 herein, this Agreement shall become void and of no further force and
effect, except that the provisions of Article VIII (Indemnification), Section 9.1 (Fees and
Expenses), Section 9.2 (Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial),
Section 9.4 (Notices), Section 9.8 (Governing Law), Section 9.9 (Survival), Section 9.11
(Publicity), Section 9.12 (Severability) and this Article VII (Termination) shall remain in full
force and effect notwithstanding such termination. Nothing in this Section 7.3 shall be deemed to
release the Company or the Investor from any liability for any breach under this Agreement, or to
impair the rights of the Company and the Investor to compel specific performance by the other party
of its obligations under this Agreement.

INDEMNIFICATION; LIMITATION OF DAMAGES

General Indemnity.

Indemnification by the Company. The Company shall indemnify and hold harmless the
Investor each affiliate, employee, representative and advisor of and to the Investor, and each
person, if any, who controls the Investor within the meaning of Section 15 of the Securities Act or
Section 20(a) of the Exchange Act from and against all losses, claims, damages, liabilities and
expenses (including reasonable costs of defense and investigation and all attorneys’ fees) to which
the Investor and each such other person may become subject, under the Securities Act or otherwise,
insofar as such losses, claims, damages, liabilities and expenses (or actions in respect thereof)
arise out of or are based upon (a) any violation of law (including United States federal securities
laws) in connection with the transactions contemplated by this Agreement by the Company or any of
its Subsidiaries, affiliates, officers, directors or employees, (b) any untrue statement or alleged
untrue statement of a material fact contained, or incorporated by reference, in the Registration
Statement or any amendment thereto or any omission or alleged omission to state therein, or in any
document incorporated by reference therein, a material fact required to be stated therein or
necessary to make the statements therein not misleading, or (c) any untrue statement or alleged
untrue statement of a material fact contained, or incorporated by reference, in the Prospectus, any
Issuer Free Writing Prospectus, or in any amendment thereof or supplement thereto, or in any
“issuer information” (as defined in Rule 433 under the Securities Act) of the Company, which
“issuer information” is required to be, or is, filed with the Commission or otherwise contained in
any Free Writing Prospectus, or any amendment or supplement thereto, or any omission or alleged
omission to state therein, or in any document incorporated by reference therein, a material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, however, that
(A) the Company shall not be liable under this Section 8.1(i) to the extent that a court of
competent jurisdiction shall have determined by a final judgment (from which no further appeals are
available) that such loss, claim, damage, liability or expense resulted directly and solely from
any such acts or failures to act, undertaken or omitted to be taken by the Investor or such person
through its bad faith or willful misconduct, (B) the foregoing indemnity shall not apply to any
loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or
based upon any untrue statement or alleged untrue statement or omission or alleged omission made in
reliance upon and in conformity with written information furnished to the Company by the Investor
expressly for use in the Current Report or any Prospectus Supplement or Permitted Free Writing
Prospectus, or any amendment thereof or supplement thereto, and (C) with respect to the Prospectus,
the foregoing indemnity shall not inure to the benefit of the Investor or any such person from whom
the person asserting any loss, claim, damage, liability or expense purchased Common Stock, if
copies of all Prospectus Supplements required to be filed pursuant to Section 1.4 and 5.9, together
with the Base Prospectus, were timely delivered or made available to the Investor pursuant hereto
and a copy of the Base Prospectus, together with a Prospectus Supplement (as applicable), was not
sent or given by or on behalf of the Investor or any such person to such person, if required by law
to have been delivered, at or prior to the written confirmation of the sale of the Common Stock to
such person, and if delivery of the Base Prospectus, together with a Prospectus Supplement (as
applicable), would have cured the defect giving rise to such loss, claim, damage, liability or
expense.

The Company shall reimburse the Investor and each such controlling person promptly upon demand
(with accompanying presentation of documentary evidence) for all legal and other costs and expenses
reasonably and actually incurred by the Investor or such indemnified persons in investigating,
defending against, or preparing to defend against any such claim, action, suit or proceeding with
respect to which it is entitled to indemnification pursuant to this Article VII; provided,
that the Company shall only be required to pay the costs and expenses of one legal counsel for all
indemnified persons in connection with the matter giving rise to the indemnification claim in
question, and such costs and expenses in connection with such matter shall in no event exceed more
than $500,000.

Indemnification by the Investor. The Investor shall indemnify and hold harmless the
Company, each of its directors, officers, employees, representatives and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act from and against all losses, claims, damages, liabilities and expenses (including
reasonable costs of defense and investigation and all attorneys fees) to which the Company and each
such other person may become subject, under the Securities Act or otherwise, insofar as such
losses, claims, damages, liabilities and expenses (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of a material fact contained in the
Current Report or any Prospectus Supplement or Permitted Free Writing Prospectus, or in any
amendment thereof or supplement thereto, or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading, in each case, to the extent, but
only to the extent, the untrue statement, alleged untrue statement, omission or alleged omission
was made in reliance upon, and in conformity with, written information furnished by the Investor to
the Company expressly for inclusion in the Current Report or such Prospectus Supplement or
Permitted Free Writing Prospectus, or any amendment thereof or supplement thereto.

The Investor shall reimburse the Company and each such director, officer, employee,
representative or controlling person promptly upon demand for all legal and other costs and
expenses reasonably incurred by the Company or such indemnified persons in investigating, defending
against, or preparing to defend against any such claim, action, suit or proceeding with respect to
which it is entitled to indemnification pursuant to this Article VII; provided, that the
Investor shall only be required to pay the costs and expenses of one legal counsel for all
indemnified persons in connection with the matter giving rise to the indemnification claim in
question, and such costs and expenses in connection with such matter shall in no event exceed more
than $500,000.

Indemnification Procedures. Promptly after a person receives notice of a claim or the
commencement of an action for which the person intends to seek indemnification under Section 8.1,
the person will notify the indemnifying party in writing of the claim or commencement of the
action, suit or proceeding; provided, however, that failure to notify the
indemnifying party will not relieve the indemnifying party from liability under Section 8.1, except
to the extent it has been materially prejudiced by the failure to give notice. The indemnifying
party will be entitled to participate in the defense of any claim, action, suit or proceeding as to
which indemnification is being sought, and if the indemnifying party acknowledges in writing the
obligation to indemnify the party against whom the claim or action is brought, the indemnifying
party may (but will not be required to) assume the defense against the claim, action, suit or
proceeding with counsel satisfactory to it. After an indemnifying party notifies an indemnified
party that the indemnifying party wishes to assume the defense of a claim, action, suit or
proceeding, the indemnifying party will not be liable for any legal or other expenses incurred by
the indemnified party in connection with the defense against the claim, action, suit or proceeding
except that if, in the opinion of counsel to the indemnifying party, one or more of the indemnified
parties should be separately represented in connection with a claim, action, suit or proceeding,
the indemnifying party will pay the reasonable fees and expenses of one separate counsel for the
indemnified parties. Each indemnified party, as a condition to receiving indemnification as
provided in Section 8.1, will cooperate in all reasonable respects with the indemnifying party in
the defense of any action or claim as to which indemnification is sought. No indemnifying party
will be liable for any settlement of any action effected without its prior written consent.
Notwithstanding the foregoing sentence, if at any time an indemnified party that is entitled to
reimbursement pursuant to this Article VIII shall have requested (by written notice provided in
accordance with Section 9.4) an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of
the nature contemplated hereby effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the aforesaid request,
(ii) such indemnifying party shall have received written notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall
not have reimbursed such indemnified party in accordance with such request prior to the date of
such settlement. No indemnifying party will, without the prior written consent of the indemnified
party, effect any settlement of a pending or threatened action with respect to which an indemnified
party is, or is informed that it may be, made a party and for which it would be entitled to
indemnification, unless the settlement includes an unconditional release of the indemnified party
from all liability and claims which are the subject matter of the pending or threatened action.

If for any reason the indemnification provided for in this Agreement is not available to, or
is not sufficient to hold harmless, an indemnified party in respect of any loss or liability
referred to in Section 8.1 as to which such indemnified party is entitled to indemnification
thereunder, each indemnifying party shall, in lieu of indemnifying the indemnified party,
contribute to the amount paid or payable by the indemnified party as a result of such loss or
liability, (i) in the proportion which is appropriate to reflect the relative benefits received by
the indemnifying party, on the one hand, and by the indemnified party, on the other hand, from the
sale of Shares which is the subject of the claim, action, suit or proceeding which resulted in the
loss or liability or (ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above, but also the relative fault of the indemnifying party, on the one hand, and the
indemnified party, on the other hand, with respect to the statements or omissions which are the
subject of the claim, action, suit or proceeding that resulted in the loss or liability, as well as
any other relevant equitable considerations.

The remedies provided for in Section 8.1 and this Section 8.2 are not exclusive and shall not
limit any rights or remedies which may otherwise be available to any indemnified person at law or
in equity.

Limitation of Damages.

(i) Except as provided in Section 8.1 hereof, in the event that the Company fails to fulfill
its obligations under this Agreement in accordance with the terms and conditions of this Agreement
for any reason other than a failure of any condition precedent to the Company’s obligations
hereunder, the remedies of the Investor for such failure shall be limited to: (i) actual damages,
(ii) liquidated damages as set forth in Section 9.1(ii) below, and (iii) the remedies set forth in
Section 9.2(i) below. The Investor shall not be entitled to pursue any other remedies, including
any incidental, special, punitive or consequential damages arising from or as a result of such
failure by the Company.

(ii) Except as provided in Section 8.2 hereof, in the event that the Investor fails to fulfill
its obligations under this Agreement in accordance with the terms and conditions of this Agreement
for any reason other than a failure of any condition precedent to the Investor’s obligations
hereunder, the remedies of the Company for such failure shall be limited to: (i) actual damages,
and (ii) the remedies set forth in Section 9.2(i) below. The Company shall not be entitled to
pursue any other remedies, including any incidental, special, punitive or consequential damages
arising from or as a result of such failure by the Investor.

MISCELLANEOUS

Fees and Expenses.

Each party shall bear its own fees and expenses related to the transactions contemplated by
this Agreement; provided, however, that the Company shall pay, on the Effective
Date, by wire transfer of immediately available funds to an account designated by the Investor’s
counsel, promptly following the receipt of an invoice therefor, all reasonable attorneys’ fees and
expenses (exclusive of disbursements and out-of-pocket expenses) incurred by the Investor, up to
$35,000, in connection with the preparation, negotiation, execution and delivery of this Agreement,
legal due diligence of the Company and review of the Registration Statement, the Base Prospectus,
the Current Report, any Permitted Free Writing Prospectus and all other related transaction
documentation. The Company shall pay all U.S. federal, state and local stamp and other similar
transfer and other taxes and duties levied in connection with issuance of the Shares pursuant
hereto.

If the Company issues a Fixed Request Notice and fails to deliver the Shares (which have been
approved for listing or quotation on the Trading Market) to the Investor on the applicable
Settlement Date and such failure continues for 10 Trading Days, the Company shall pay the Investor,
in cash, as liquidated damages for such failure and not as a penalty, an amount equal to 2.0% of
the payment required to be paid by the Investor on such Settlement Date (i.e., the sum of the Fixed
Amount Requested and the Optional Amount Dollar Amount) for the initial 30 days following such
Settlement Date until the Shares (which have been approved for listing or quotation on the Trading
Market) have been delivered, and an additional 2.0% for each additional 30-day period thereafter
(up to a maximum of 12 consecutive 30-day periods) until the Shares (which have been approved for
listing or quotation on the Trading Market) have been delivered, which amount shall be prorated for
such periods less than 30 days (subject in all cases to the Trading Market Limit). Nothing in this
Section 9.1(ii) shall be deemed to release the Company from any liability for any breach under this
Agreement (subject to the limitations set forth in Section 8.3, as applicable), or to impair the
rights of the Investor to compel specific performance by the Company of its obligations under this
Agreement.

In any litigation, arbitration, or other proceeding by which either party seeks to enforce its
rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any
rights or obligations under this Agreement, the prevailing party shall be awarded its actual and
reasonable attorneys fees, and costs and expenses (in an aggregate amount not to exceed $500,000).

Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial.

The Company and the Investor acknowledge and agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that either party shall be
entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this
Agreement by the other party and to enforce specifically the terms and provisions hereof. Except as
provided in Sections 8.1 and 8.2 hereof, the parties agree that, other than (i) actual damages and
(ii) the liquidated damages payment that may be owed by the Company pursuant to Section 9.1(ii),
the remedy set forth in this Section 9.2(i) shall be the sole remedy to which either party may be
entitled by law or equity.

Each of the Company and the Investor (a) hereby irrevocably submits to the exclusive
jurisdiction of the United States District Court and other courts of the United States sitting in
the Southern District of New York for the purposes of any suit, action or proceeding arising out of
or relating to this Agreement, and (b) hereby waives, and agrees not to assert in any such suit,
action or proceeding, any claim or objection that (i) it is not personally subject to the
jurisdiction of such court, (ii) the suit, action or proceeding is brought in an inconvenient
forum, or (iii) the venue of the suit, action or proceeding is improper. Each of the Company and
the Investor consents to process being served in any such suit, action or proceeding by mailing a
copy thereof to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice
thereof. Investor further consents to service by mail, or otherwise, on Greenberg Traurig, LLP, 200
Park Avenue, New York, New York, 10166, which shall constitute good and sufficient service on
Investor, and Investor hereby waives and agrees not to assert any objection for failure to make
personal service on Investor. Nothing in this Section 9.2 shall affect or limit any right to serve
process in any other manner permitted by law.

Each of the Company and the Investor hereby waives to the fullest extent permitted by
applicable law, any right it may have to a trial by jury in respect to any litigation directly or
indirectly arising out of, under or in connection with this Agreement or the transactions
contemplated hereby or disputes relating hereto. Each of the Company and the Investor (a) certifies
that no representative, agent or attorney of any other party has represented, expressly or
otherwise, that such other party would not, in the event of litigation, seek to enforce the
foregoing waiver and (b) acknowledges that it and the other parties hereto have been induced to
enter into this Agreement by, among other things, the mutual waivers and certifications in this
Section 9.2.

Entire Agreement; Amendment. This Agreement, together with the exhibits referred to
herein and the Disclosure Schedule, represents the entire agreement of the parties with respect to
the subject matter hereof, and there are no promises, undertakings, representations or warranties
by either party relative to subject matter hereof not expressly set forth herein. No provision of
this Agreement may be amended other than by a written instrument signed by both parties hereto.
The Disclosure Schedule and all exhibits to this Agreement are hereby incorporated by reference in,
and made a part of, this Agreement as if set forth in full herein.

Notices. Any notice, demand, request, waiver or other communication required or
permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery
or facsimile (with facsimile machine confirmation of delivery received) at the address or number
designated below (if delivered on a business day during normal business hours where such notice is
to be received), or the first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to
such address, or upon actual receipt of such mailing, whichever shall first occur. The address for
such communications shall be:

	 	 	 	If to the Company: Syntroleum Corporation

	 	 	 
	5416 S. Yale, Suite 400

	Tulsa, Oklahoma 74135

	 	

	Telephone Number: (918) 592-7900

	Fax: (918) 592-7979

	 	

	Attention: Ron Stinebaugh

	With copies to:

	 	Hall, Estill, Hardwick, Gable, Golden & Nelson, PC

	 	 	 
	320 South Boston Avenue, Suite 200

	Tulsa, Oklahoma 74103

	 	

	Telephone Number: (918) 594-0413

	Fax: (918) 594-0505

	 	

	Attention: Del L. Gustafson, Esq.

	If to the Investor:

	 	Energy Opportunity, Ltd.

	 	 	 
	4th Floor, Rodus Building

	Road Reef, P.O. Box 765

Tortola

British Virgin Islands

	 	

	Telephone Number: (284) 494-8086

	Fax: (284) 494-9474

	 	

	Attention: Peter W. Poole

	With copies to:

	 	Greenberg Traurig, LLP

The MetLife Building

200 Park Avenue

New York, NY 10166

Telephone Number: (212) 801-9200

Fax: (212) 801-6400

Attention: Anthony J. Marsico, Esq.

Either party hereto may from time to time change its address for notices by giving at least 10 days
advance written notice of such changed address to the other party hereto.

Waivers. No waiver by either party of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any other provisions, condition or requirement hereof nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter. No provision of this Agreement may be waived other than in a
written instrument signed by the party against whom enforcement of such waiver is sought.

Headings. The article, section and subsection headings in this Agreement are for
convenience only and shall not constitute a part of this Agreement for any other purpose and shall
not be deemed to limit or affect any of the provisions hereof.

Successors and Assigns. The Investor may not assign this Agreement to any person
without the prior consent of the Company, in the Company’s sole discretion. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and assigns. The
assignment by a party to this Agreement of any rights hereunder shall not affect the obligations of
such party under this Agreement.

Governing Law. This Agreement shall be governed by and construed in accordance with
the internal procedural and substantive laws of the State of New York, without giving effect to the
choice of law provisions of such state that would cause the application of the laws of any other
jurisdiction.

Survival. The representations, warranties, covenants and agreements of the Company
and the Investor contained in this Agreement shall survive the execution and delivery hereof until
the termination of this Agreement; provided, however, that the provisions of
Article VII (Termination), Article VIII (Indemnification), Section 9.1 (Fees and Expenses), Section
9.2 (Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial), Section 9.4 (Notices),
Section 9.8 (Governing Law), Section 9.11 (Publicity), Section 9.12 (Severability) and this Section
9.9 (Survival) shall remain in full force and effect notwithstanding such termination.

Counterparts. This Agreement may be executed in counterparts, all of which taken
together shall constitute one and the same original and binding instrument and shall become
effective when all counterparts have been signed by each party and delivered to the other parties
hereto, it being understood that all parties hereto need not sign the same counterpart. In the
event any signature is delivered by facsimile, digital or electronic transmission, such
transmission shall constitute delivery of the manually executed original and the party using such
means of delivery shall thereafter cause four additional executed signature pages to be physically
delivered to the other parties within five days of the execution and delivery hereof. Failure to
provide or delay in the delivery of such additional executed signature pages shall not adversely
affect the efficacy of the original delivery.

Publicity. On or after the Effective Date, the Company may issue a press release or
otherwise make a public statement or announcement with respect to this Agreement or the
transactions contemplated hereby or the existence of this Agreement (including, without limitation,
by filing a copy of this Agreement with the Commission); provided, however, that
prior to issuing any such press release, or making any such public statement or announcement, the
Company shall consult with the Investor on the form and substance of such press release or other
disclosure.

Severability. The provisions of this Agreement are severable and, in the event that
any court of competent jurisdiction shall determine that any one or more of the provisions or part
of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of this Agreement, and this Agreement shall be reformed
and construed as if such invalid or illegal or unenforceable provision, or part of such provision,
had never been contained herein, so that such provisions would be valid, legal and enforceable to
the maximum extent possible.

Further Assurances. From and after the date of this Agreement, upon the request of
the Investor or the Company, each of the Company and the Investor shall execute and deliver such
instrument, documents and other writings as may be reasonably necessary or desirable to confirm and
carry out and to effectuate fully the intent and purposes of this Agreement.

[Signature Page Follows]

1

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

SYNTROLEUM CORPORATION:

By:/s/ Edward G. Roth

Name: Edward G Roth

Title: Chief Executive Officer

ENERGY OPPORTUNITY, LTD.:

By:/s/ Peter W. Poole

Name: Peter W. Poole

Title: Director

	 
	ANNEX A TO THE

	COMMON STOCK PURCHASE AGREEMENT

	DEFINITIONS

“Acceptable Financing” shall have the meaning assigned to such term in Section 5.6(ii)
hereof.

“Aggregate Limit” shall have the meaning assigned to such term in Section 1.1 hereof.

“Base Prospectus” shall mean the Company’s prospectus, dated July 14, 2010, a
preliminary form of which is included in the Registration Statement, including the documents
incorporated by reference therein.

“Below Market Offering” shall have the meaning assigned to such term in Section
5.6(ii) hereof.

“Broker-Dealer” shall have the meaning assigned to such term in Section 5.13 hereof.

“Bylaws” shall have the meaning assigned to such term in Section 4.3 hereof.

“Charter” shall have the meaning assigned to such term in Section 4.3 hereof.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Commission” shall mean the Securities and Exchange Commission or any successor
entity.

“Commission Documents” shall mean (1) all reports, schedules, registrations, forms,
statements, information and other documents filed by the Company with the Commission pursuant to
the reporting requirements of the Exchange Act, including all material filed pursuant to Section
13(a) or 15(d) of the Exchange Act, which have been filed by the Company since December 31, 2009
and which hereafter shall be filed by the Company during the Investment Period, including, without
limitation, the Current Report and the Form 10-K filed by the Company for its fiscal year ended
December 31, 2009 (the “2009 Form 10-K”), (2) the Registration Statement, as the same may
be amended from time to time, the Prospectus and each Prospectus Supplement, and each Permitted
Free Writing Prospectus and (3) all information contained in such filings and all documents and
disclosures that have been and heretofore shall be incorporated by reference therein.

“Common Stock” shall have the meaning assigned to such term in the Recitals.

“Current Market Price” means, with respect to any particular measurement date, the
closing price of a share of Common Stock as reported on the Trading Market for the Trading Day
immediately preceding such measurement date.

“Current Report” shall have the meaning assigned to such term in Section 1.4 hereof.

“Discount Price” shall have the meaning assigned to such term in Section 2.2 hereof.

“EDGAR” shall have the meaning assigned to such term in Section 4.3 hereof.

“Effective Date” shall mean the date of this Agreement.

“Environmental Laws” shall have the meaning assigned to such term in Section 4.15
hereof.

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

“Event Period” shall have the meaning assigned to such term in Section 7.2 hereof.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission thereunder.

“FINRA” shall have the meaning assigned to such term in Section 4.18 hereof.

“Fixed Amount Requested” shall mean the amount of a Fixed Request requested by the
Company in a Fixed Request Notice delivered pursuant to Section 2.1 hereof.

“Fixed Request” means the transactions contemplated under Sections 2.1 through 2.8 of
this Agreement.

“Fixed Request Amount” means the actual amount of proceeds received by the Company
from the Investor pursuant to a Fixed Request under this Agreement.

“Fixed Request Exercise Date” shall have the meaning assigned to such term in Section
2.2 hereof.

“Fixed Request Notice” shall have the meaning assigned to such term in Section 2.1
hereof.

“Free Writing Prospectus” shall mean a “free writing prospectus” as defined in Rule
405 promulgated under the Securities Act.

“GAAP” shall mean generally accepted accounting principles in the United States of
America as applied by the Company.

“Governmental Licenses” shall have the meaning assigned to such term in Section
4.14(a) hereof.

“Indebtedness” shall have the meaning assigned to such term in Section 4.9 hereof.

“Integration Notice” shall have the meaning assigned to such term in Section 5.6(ii)
hereof.

“Intellectual Property” shall have the meaning assigned to such term in Section
4.14(b) hereof.

“Investment Period” shall have the meaning assigned to such term in Section 7.1
hereof.

“Issuer Free Writing Prospectus” shall mean an “issuer free writing prospectus” as
defined in Rule 433 promulgated under the Securities Act.

“Market Capitalization” shall be calculated on the Trading Day preceding the
applicable Pricing Period and shall be the product of (x) the number of shares of Common Stock
outstanding and (y) the closing bid price of the Common Stock, both as determined by Bloomberg
Financial LP using the DES and HP functions.

“Material Adverse Effect” shall mean any condition, occurrence, state of facts or
event having, or insofar as reasonably can be foreseen would likely have, any effect on the
business, operations, properties or condition (financial or otherwise) of the Company that is
material and adverse to the Company and its Subsidiaries, taken as a whole, and/or any condition,
occurrence, state of facts or event that would prohibit or otherwise materially interfere with or
delay the ability of the Company to perform any of its obligations under this Agreement;
provided, however, that none of the following, individually or in the aggregate,
shall be taken into account in determining whether a Material Adverse Effect has occurred or
insofar as reasonably can be foreseen would likely occur: (i) changes in conditions in the U.S. or
global capital, credit or financial markets generally, including changes in the availability of
capital or currency exchange rates, provided such changes shall not have affected the Company in a
materially disproportionate manner as compared to other similarly situated companies; (ii) changes
generally affecting the renewable fuels industries, provided such changes shall not have affected
the Company in a materially disproportionate manner as compared to other similarly situated
companies; and (iii) any effect of the announcement of this Agreement or the consummation of the
transactions contemplated by this Agreement on the Company’s relationships, contractual or
otherwise, with customers, suppliers, vendors, bank lenders, strategic venture partners or
employees.

“Material Agreements” shall have the meaning assigned to such term in Section 4.16
hereof.

“Material Change in Ownership” shall mean the occurrence of any one or more of the
following: (i) the acquisition by any person, including any syndicate or group deemed to be a
“person” under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or
indirectly, through a purchase, merger or other acquisition transaction or series of transactions,
of shares of capital stock or other securities of the Company entitling such person to exercise,
upon an event of default or default or otherwise, 50% or more of the total voting power of all
series and classes of capital stock and other securities of the Company entitled to vote generally
in the election of directors, other than any such acquisition by the Company, any Subsidiary of the
Company or any employee benefit plan of the Company; (ii) any consolidation or merger of the
Company with or into any other person, any merger of another person into the Company, or any
conveyance, transfer, sale, lease or other disposition of all or substantially all of the
properties and assets of the Company to another person, other than (a) any such transaction (x)
that does not result in any reclassification, conversion, exchange or cancellation of outstanding
shares of capital stock of the Company and (y) pursuant to which holders of capital stock of the
Company immediately prior to such transaction have the entitlement to exercise, directly or
indirectly, 50% or more of the total voting power of all shares of capital stock of the Company
entitled to vote generally in the election of directors of the continuing or surviving person
immediately after such transaction or (b) any merger which is effected solely to change the
jurisdiction of incorporation of the Company and results in a reclassification, conversion or
exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving
entity; (iii) during any consecutive two-year period, individuals who at the beginning of that
two-year period constituted the Board of Directors (together with any new directors whose election
to the Board of Directors, or whose nomination for election by the stockholders of the Company, was
approved by a vote of a majority of the directors then still in office who were either directors at
the beginning of such period or whose elections or nominations for election were previously so
approved) cease for any reason to constitute a majority of the Board of Directors then in office;
or (iv) the Company is liquidated or dissolved or a resolution is passed by the Company’s
stockholders approving a plan of liquidation or dissolution of the Company. Beneficial ownership
shall be determined in accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act.
The term “person” shall include any syndicate or group which would be deemed to be a “person” under
Section 13(d)(3) of the Exchange Act.

“Multiplier” shall have the meaning assigned to such term in Section 2.3 hereof.

“NASDAQ” means the NASDAQ Global Market or any successor thereto.

“Optional Amount” means the transactions contemplated under Sections 2.9 through 2.11
of this Agreement.

“Optional Amount Dollar Amount” shall mean the actual amount of proceeds received by
the Company pursuant to the exercise of an Optional Amount under this Agreement.

“Optional Amount Notice” shall mean a notice sent to the Company with regard to the
Investor’s election to exercise all or any portion of an Optional Amount, as provided in Section
2.11 hereof and substantially in the form attached hereto as Exhibit B.

“Optional Amount Threshold Price” shall have the meaning assigned to such term in
Section 2.1 hereof.

“Other Financing” shall have the meaning assigned to such term in Section 5.6(ii)
hereof.

“Other Financing Notice” shall have the meaning assigned to such term in Section
5.6(ii) hereof.

“Permitted Free Writing Prospectus” shall have the meaning assigned to such term in
Section 5.8(ii) hereof.

“Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.

“Plan” shall have the meaning assigned to such term in Section 4.22 hereof.

“Pricing Period shall mean a period of 10 consecutive Trading Days commencing on the
Pricing Period start date set forth in the Fixed Request Notice, or such other period mutually
agreed upon by the Investor and the Company.

“Prospectus” shall mean the Base Prospectus, together with any final prospectus filed
with the Commission pursuant to Rule 424(b), as supplemented by any Prospectus Supplement,
including the documents incorporated by reference therein.

“Prospectus Supplement” shall mean any prospectus supplement to the Base Prospectus
filed with the Commission pursuant to Rule 424(b) under the Securities Act, including the documents
incorporated by reference therein.

“Reduction Notice” shall have the meaning assigned to such term in Section 2.8 hereof.

“Reedland” shall have the meaning assigned to such term in Section 4.13 hereof.

“Registration Statement” shall mean the registration statement on Form S-3, Commission
File Number 333-157879, filed by the Company with the Commission under the Securities Act for the
registration of the Shares, as such Registration Statement may be amended and supplemented from
time to time (including pursuant to Rule 462(b) under the Securities Act), including all documents
filed as part thereof or incorporated by reference therein, and including all information deemed to
be a part thereof at the time of effectiveness pursuant to Rule 430A or Rule 430B under the
Securities Act.

“Restricted Period” shall have the meaning assigned to such term in Section 5.10(i)
hereof.

“Restricted Person” shall have the meaning assigned to such term in Section 5.10(i)
hereof.

“Restricted Persons” shall have the meaning assigned to such term in Section 5.10(i)
hereof.

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the Commission thereunder.

“Settlement Date” shall have the meaning assigned to such term in Section 2.7 hereof.

“Shares” shall mean shares of Common Stock issuable to the Investor upon exercise of a
Fixed Request and shares of Common Stock issuable to the Investor upon exercise of an Optional
Amount.

“Short Sales” means “short sales” as defined in Rule 200 promulgated under Regulation
SHO under the Exchange Act.

“Significant Subsidiary” means any Subsidiary of the Company that would constitute a
Significant Subsidiary of the Company within the meaning of Rule 1-02 of Regulation S-X of the
Commission.

“SOXA” shall have the meaning assigned to such term in Section 4.6(c) hereof.

“Subsidiary” shall mean any corporation or other entity of which at least a majority
of the securities or other ownership interest having ordinary voting power (absolutely or
contingently) for the election of directors or other persons performing similar functions are at
the time owned directly or indirectly by the Company and/or any of its other Subsidiaries.

“Tax Affiliate” means any Person in which the Investor, directly or indirectly through
one or more intermediaries, owns any equity interest.

“Threshold Price” is the lowest price (except to the extent otherwise provided in
Section 2.6) at which the Company may sell Shares during the applicable Pricing Period as set forth
in a Fixed Request Notice (not taking into account the applicable percentage discount during such
Pricing Period determined in accordance with Section 2.2); provided, however, that
at no time shall the Threshold Price be lower than $1.00 per share unless the Company and the
Investor mutually shall agree.

“Total Commitment” shall have the meaning assigned to such term in Section 1.1 hereof.

“Trading Day” shall mean a full trading day (beginning at 9:30 a.m., New York City
time, and ending at 4:00 p.m., New York City time) on the NASDAQ.

“Trading Market” means the following markets or exchanges on which the Common Stock is
listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the
Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any
successors to any of the foregoing), whichever is at the time the principal trading exchange or
market for the Common Stock.

“Trading Market Limit” means 15,491,880 shares of duly authorized, validly issued,
fully paid and non-assessable shares of Common Stock (as adjusted for any stock splits, stock
combinations, stock dividends, recapitalizations and other similar transactions that occur on or
after the date of this Agreement); provided, however, that the Trading Market Limit
shall not exceed under any circumstances that number of shares of Common Stock that the Company may
issue pursuant to this Agreement and the transactions contemplated hereby without (a) breaching the
Company’s obligations under the rules and regulations of the Trading Market or (b) obtaining
stockholder approval under the applicable rules and regulations of the Trading Market.

“VWAP” shall mean the daily volume weighted average price (based on a Trading Day from
9:30 a.m. to 4:00 p.m. (New York time)) of the Company on the NASDAQ as reported by Bloomberg
Financial L.P. using the AQR function.

“Warrant Value” shall mean the fair value of all warrants, options and other similar
rights issued to a third party in connection with an Other Financing, determined by using a
standard Black-Scholes option-pricing model using an expected volatility percentage as shall be
mutually agreed by the Investor and the Company. In the case of a dispute relating to such
expected volatility assumption, the Investor shall obtain applicable volatility data from three
investment banking firms of nationally recognized reputation, and the parties hereto shall use the
average thereof for purposes of determining the expected volatility percentage in connection with
the Black-Scholes calculation referred to in the immediately preceding sentence.

EXHIBIT A TO THE

COMMON STOCK PURCHASE AGREEMENT

FORM OF FIXED REQUEST NOTICE

Reference is made to the Common Stock Purchase Agreement dated as of July 14, 2010, (the
“Purchase Agreement”) between Syntroleum Corporation, a corporation organized and existing
under the laws of the State of Delaware (the “Company”), and Energy Opportunity, Ltd., a
business company incorporated under the laws of the British Virgin Islands. Capitalized terms used
and not otherwise defined herein shall have the meanings given such terms in the Purchase
Agreement.

In accordance with and pursuant to Section 2.1 of the Purchase Agreement, the Company hereby
issues this Fixed Request Notice to exercise a Fixed Request for the Fixed Amount Requested
indicated below.

	 	 	 
	Fixed Amount Requested:

	 	

	Optional Amount Dollar Amount:

	 	

	Pricing Period start date:

	 	

	Pricing Period end date:

	 	

	Settlement Date:

	 	

	Fixed Request Threshold Price:

	 	

	Optional Amount Threshold Price:

	 	

	Dollar Amount of Common Stock Currently Unissued

under the Registration Statement;

	 	

	Dollar Amount of Common Stock Currently Available

under the Aggregate Limit:

	 	

	Dated:

	 	By:
	
 
	 	Name

Title:
	
 
	 	Address:
	
 
	 	Facsimile No.

AGREED AND ACCEPTED

	 	 	By:

Name

Title:

EXHIBIT B TO THE

COMMON STOCK PURCHASE AGREEMENT

FORM OF OPTIONAL AMOUNT NOTICE

To:

Fax#:

Reference is made to the Common Stock Purchase Agreement dated as of July 14, 2010 (the
“Purchase Agreement”) between Syntroleum Corporation, a corporation organized and existing
under the laws of the State of Delaware (the “Company”), and Energy Opportunity, Ltd., a
business company incorporated under the laws of the British Virgin Islands (the
“Investor”). Capitalized terms used and not otherwise defined herein shall have the
meanings given such terms in the Purchase Agreement.

In accordance with and pursuant to Section 2.1 of the Purchase Agreement, the Investor hereby
issues this Optional Amount Notice to exercise an Optional Amount for the Optional Amount Dollar
Amount indicated below.

	 	 	 
	Optional Amount Dollar Amount Exercised

	 	

	Number of Shares to be purchased

	 	

	VWAP on the date hereof:

	 	

	Discount Price:

	 	

	Settlement Date:

	 	

	Threshold Price:

	 	

	Dated:

	 	By:
	
 
	 	Name

Title:
	
 
	 	Address:
	
 
	 	Facsimile No.

EXHIBIT C TO THE

COMMON STOCK PURCHASE AGREEMENT

CERTIFICATE OF THE COMPANY

CLOSING CERTIFICATE

_________ 200__

The undersigned, the [      ] of Syntroleum Corporation, a corporation organized and
existing under the laws of the State of Delaware (the “Company”), delivers this certificate
in connection with the Common Stock Purchase Agreement, dated as of July 14, 2010 (the
“Agreement”), by and between the Company and Energy Opportunity, Ltd., a business company
incorporated under the laws of the British Virgin Islands (the “Investor”), and hereby
certifies on the date hereof that (capitalized terms used herein without definition have the
meanings assigned to them in the Agreement):

1. Attached hereto as Exhibit A is a true, complete and correct copy of the Certificate of
Incorporation of the Company as filed with the Secretary of State of the State of Delaware. The
Certificate of Incorporation of the Company has not been further amended or restated, and no
document with respect to any amendment to the Certificate of Incorporation of the Company has been
filed in the office of the Secretary of State of the State of Delaware since the date shown on the
face of the state certification relating to the Company’s Certificate of Incorporation, which is in
full force and effect on the date hereof, and no action has been taken by the Company in
contemplation of any such amendment or the dissolution, merger or consolidation of the Company.

2. Attached hereto as Exhibit B is a true and complete copy of the Bylaws of the Company, as
amended and restated through, and as in full force and effect on, the date hereof, and no proposal
for any amendment, repeal or other modification to the Bylaws of the Company has been taken or is
currently pending before the Board of Directors or stockholders of the Company.

3. The Board of Directors of the Company has approved the transactions contemplated by the
Agreement; said approval has not been amended, rescinded or modified and remains in full force and
effect as of the date hereof.

4. Each person who, as an officer of the Company, or as attorney-in-fact of an officer of the
Company, signed (i) the Agreement and (ii) any other document delivered prior hereto or on the date
hereof in connection with the transactions contemplated by the Agreement, was duly elected,
qualified and acting as such officer or duly appointed and acting as such attorney-in-fact, and the
signature of each such person appearing on any such document is his genuine signature.

IN WITNESS WHEREOF, I have signed my name as of the date first above written.

By:

Title:EXHIBIT D TO THE

COMMON STOCK PURCHASE AGREEMENT

COMPLIANCE CERTIFICATE

In connection with the issuance of shares of common stock of Syntroleum Corporation, a
corporation organized and existing under the laws of the State of Delaware (the “Company”),
pursuant to the Fixed Request Notice, dated [      ], delivered by the Company to Energy
Opportunity, Ltd. (the “Investor”) pursuant to Article II of the Common Stock Purchase
Agreement, dated as of July 14, 2010, by and between the Company and the Investor (the
“Agreement”), the undersigned hereby certifies as follows:

1. The undersigned is the duly elected [      ] of the Company.

2. Except as set forth in the attached Disclosure Schedule, the representations and warranties
of the Company set forth in Article IV of the Agreement (i) that are not qualified by “materiality”
or “Material Adverse Effect” are true and correct in all material respects as of [insert Fixed
Request Exercise Date] and as of the date hereof with the same force and effect as if made on such
dates, except to the extent such representations and warranties are as of another date, in which
case, such representations and warranties are true and correct in all material respects as of such
other date and (ii) that are qualified by “materiality” or “Material Adverse Effect” are true and
correct as of [insert Fixed Request Exercise Date] and as of the date hereof with the same force
and effect as if made on such dates, except to the extent such representations and warranties are
as of another date, in which case, such representations and warranties are true and correct as of
such other date.

3. The Company has performed, satisfied and complied in all material respects with all
covenants, agreements and conditions required by the Agreement to be performed, satisfied or
complied with by the Company at or prior to [insert Fixed Request Exercise Date] and the date
hereof.

Capitalized terms used but not otherwise defined herein shall have the meanings assigned to
them in the Agreement.

The undersigned has executed this Certificate this [      ] day of [      ], 20[      ].

By:

Name:

Title:

2

DISCLOSURE SCHEDULE

RELATING TO THE COMMON STOCK

PURCHASE AGREEMENT, DATED AS OF JULY 14, 2010

BETWEEN SYNTROLEUM CORPORATION AND ENERGY OPPORTUNITY, LTD.

This disclosure schedule is made and given pursuant to Article IV of the Common Stock Purchase
Agreement, dated as of July 14, 2010 (the “Agreement”), by and between Syntroleum
Corporation, a Delaware corporation (the “Company”), and Energy Opportunity, Ltd., a
business company incorporated under the laws of the British Virgin Islands. Unless the context
otherwise requires, all capitalized terms are used herein as defined in the Agreement. The numbers
below correspond to the section numbers of representations and warranties in the Agreement most
directly modified by the below exceptions.

3

FORM OF OPINION OF OUTSIDE COUNSEL TO BE DELIVERED PURSUANT TO

SECTION 6.1(i) OF THE COMMON STOCK PURCHASE AGREEMENT

DATED AS OF JULY 14, 2010 BETWEEN SYNTROLEUM CORPORATION

AND ENERGY OPPORTUNITY, LTD.

[Company Counsel’s Letterhead]

	1.	 	The Company has been duly incorporated and is validly existing and in good standing under the
laws of the State of Delaware, with full corporate power and authority to own its properties
and to conduct its business as described in the Registration Statement and the Prospectus.
Based on certificates from public officials, we confirm that the Company is validly existing
and in good standing under the laws of the State of Delaware and is qualified to do business
as a foreign corporation and is in good standing in the State of Oklahoma.

	2.	 	The Company has the requisite corporate power and authority to execute, deliver and perform
its obligations under the Purchase Agreement and to issue the Shares in accordance with the
terms thereof. The execution, delivery and performance of the Purchase Agreement by the
Company and the consummation by it of the transactions contemplated thereby (including,
without limitation, the issuance of the Shares) have been duly and validly authorized by all
necessary corporate action of the Company and, except for any consent or authorization of the
Company’s Board of Directors or a committee thereof in connection with the delivery of a Fixed
Request Notice to the Investor, no further consent or authorization of the Company, its Board
of Directors or its stockholders is required.

	3.	 	The Purchase Agreement has been duly executed and delivered by the Company and (assuming the
due authorization, execution and delivery thereof by the Investor) the Purchase Agreement
constitutes a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing (regardless of
whether enforcement is sought in a proceeding at law or in equity).

	4.	 	The Registration Statement has become effective under the Securities Act. With your consent,
based solely on a telephonic confirmation by a member of the Staff of the Commission on July
14, 2010, no stop order suspending the effectiveness of the Registration Statement has been
issued under the Securities Act and no proceedings therefor have been initiated by the
Commission. Any required filing of the Prospectus and a Prospectus Supplement pursuant to
Rule 424 under the Securities Act with respect to the offering to the Investor has been made
in accordance with Rule 424 under the Securities Act. Any other material required to be filed
by the Company pursuant to Rule 433(d) under the Securities Act has been filed with the
Commission within the applicable time periods prescribed for such filings by Rule 433 under
the Securities Act.

4

FORM OF OPINION OF OUTSIDE COUNSEL TO BE DELIVERED PURSUANT TO

SECTION 6.3(x) OF THE COMMON STOCK PURCHASE AGREEMENT

DATED AS OF JULY 14, 2010 BETWEEN SYNTROLEUM CORPORATION

AND ENERGY OPPORTUNITY, LTD.

[Company Counsel’s Letterhead]

	1.	 	The Company has been duly incorporated and is validly existing and in good standing under the
laws of the State of Delaware, with full corporate power and authority to own its properties
and to conduct its business as described in the Registration Statement and the Prospectus.
Based on certificates from public officials, we confirm that the Company is validly existing
and in good standing under the laws of the State of Delaware and is qualified to do business
as a foreign corporation and is in good standing in the State of Oklahoma.

	2.	 	The issuance and sale of the Shares by the Company pursuant to the Purchase Agreement will
not, as of the date hereof: (i) violate the Company’s or any of its Subsidiaries certificate
of incorporation or bylaws (or similar organizational documents); (ii) violate the general
corporation law of the State of Delaware, or any federal or Oklahoma State statute, rule or
regulation applicable to the Company; or (iii) require any consents, approvals, or
authorizations to be obtained by the Company, or any registrations, declarations or filings to
be made by the Company, in each case, under the general corporation law of the State of
Delaware or any federal or Oklahoma statute, rule or regulation applicable to the Company that
have not been obtained or made; (iv) conflict with, or constitute a default (or an event which
with notice or lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any material agreement,
mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or
obligation to which the Company or any of its Significant Subsidiaries is a party which is an
exhibit to the Company’s Form 10-K for the year ended December 31, 2009 (the “2009 Form
10-K”); (v) create or impose a lien, charge or encumbrance on any property of the Company
under any agreement or any commitment to which the Company or any Significant Subsidiary is a
party or by which the Company or any Significant Subsidiary is bound or by which any of its
respective properties or assets are bound which is an exhibit to the 2009 Form 10-K; or (vi)
result in a violation of any federal or state order, judgment or decree applicable to the
Company or any of its Subsidiaries or by which any property or asset of the Company or any of
its Subsidiaries are bound or affected, except, in the cases described in clauses (iv), (v)
and (vi), for such conflicts, defaults, terminations, amendments, acceleration, cancellations
and violations as would not, individually or in the aggregate, have a Material Adverse Effect.

	3.	 	There is no action, suit, claim, investigation or proceeding pending or, to our knowledge,
threatened against the Company or any Subsidiary which questions the validity of the Purchase
Agreement or the transactions contemplated thereby or any action taken or to be taken pursuant
thereto. To our knowledge, except as set forth in the Commission Documents, there is no
action, suit, claim, investigation or proceeding pending or, to our knowledge, threatened,
against or involving the Company, any Subsidiary or any of their respective properties or
assets and which, if determined adversely to the Company or any such Subsidiary, would have a
Material Adverse Effect.

	4.	 	The Registration Statement has become effective under the Securities Act. With your consent,
based solely on a telephonic confirmation by a member of the Staff of the Commission on
[      ], 2010, no stop order suspending the effectiveness of the Registration Statement
has been issued under the Securities Act and no proceedings therefor have been initiated by
the Commission. Any required filing of the Prospectus and a Prospectus Supplement pursuant to
Rule 424 under the Securities Act with respect to the offering to the Investor has been made
in accordance with Rule 424 under the Securities Act. Any other material required to be filed
by the Company pursuant to Rule 433(d) under the Securities Act has been filed with the
Commission within the applicable time periods prescribed for such filings by Rule 433 under
the Securities Act.

	5.	 	The Registration Statement, at its most recent effective date (and at each deemed effective
date with respect to the Investor pursuant to Rule 430B(f)(2)), and the Prospectus and each
Prospectus Supplement, as of its date, complied as to form in all material respects with the
requirements for registration statements on Form S-3 under the Act; it being understood,
however, that we express no opinion with respect to Regulation S-T or the financial
statements, schedules or other financial data included in or incorporated by reference in or
omitted from the Registration Statement, the Prospectus or any Prospectus Supplement, and, for
purposes of this paragraph, we express no opinion concerning the accuracy or completeness of
any information contained in the Registration Statement, the Prospectus and each Prospectus
Supplement.

	6.	 	When issued and paid for in accordance with the Purchase Agreement, the Shares will be duly
authorized and validly issued, fully paid and nonassessable, free and clear of all liens,
charges, rights of first refusal and preemptive or similar rights contained in the Company’s
Governing Documents or under the laws of the State of Delaware or any material agreement,
mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or
obligation to which the Company is a party or is bound that has been filed as an exhibit to
the 2009 Form 10-K or any other Commission Document filed after the 2009 Form 10-K.

	7.	 	The Company is not an “investment company” or any entity controlled by an “investment
company,” as such term is defined in the Investment Company Act of 1940, as amended.

In addition, we have participated in conferences with officers of the Company at which the
contents of the Registration Statement, the Prospectus (including the Commission Documents
incorporated by reference therein) and each Prospectus Supplement, and each Issuer Free Writing
Prospectus (if any) (collectively, the “Offering Documents”) were discussed. The purpose of our
professional engagement was not to establish or to confirm factual matters set forth in the
Offering Documents. We have not undertaken to pass upon and are not passing upon, and we do not
assume any responsibility for, the accuracy, completeness or fairness of the statements contained
or incorporated by reference in the Offering Documents, and we have not made any independent check
or verification thereof. Moreover, many of the determinations required to be made in the
preparation of the Offering Documents involve matters of a non-legal nature.

Subject to the foregoing and on the basis of the information we gained in the course of
performing the services referred to above, we confirm to you that no facts came to our attention
that caused us to believe that the Registration Statement, as of its most recent effective date
(and at each deemed effective date with respect to the Investor pursuant to Rule 430B(f)(2)), and
as of the date hereof, together with the Commission Documents incorporated by reference therein, at
such times and as of the date hereof, insofar as such Offering Documents relate to the offering of
the Shares, contained an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not misleading, or that
the Prospectus, as of its date and as of the date hereof, together with the Commission Documents
incorporated by reference therein, at that date and as of the date hereof, and each Issuer Free
Writing Prospectus, on the date of its first use, insofar as such Offering Documents relate to the
offering of the Shares, contained an untrue statement of a material fact or omitted to state a
material fact necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading; it being understood that we express no belief with respect to the
financial statements, the notes and schedules thereto, other financial, accounting or statistical
data, or assessments of or reports on the effectiveness of internal control over financial
reporting or exhibits included in, incorporated by reference in, or omitted from, any Offering
Document.

5

FORM OF OPINION “BRING DOWN” OF OUTSIDE COUNSEL TO BE DELIVERED PURSUANT TO SECTION 6.3(x) OF THE

COMMON STOCK PURCHASE AGREEMENT DATED AS OF JULY 14, 2010 BETWEEN SYNTROLEUM CORPORATION AND ENERGY

OPPORTUNITY, LTD.

[Company Counsel’s Letterhead]

	1.	 	The Registration Statement has become effective under the Securities Act. With your consent,
based solely on a telephonic confirmation by a member of the Staff of the Commission on
[      ] [      ], 20[      ], no stop order suspending the effectiveness of the Registration Statement
has been issued under the Securities Act and no proceedings therefor have been initiated by
the Commission. Any required filing of the Prospectus and a Prospectus Supplement pursuant to
Rule 424 under the Securities Act with respect to the offering to the Investor has been made
in accordance with Rule 424 under the Securities Act. Any other material required to be filed
by the Company pursuant to Rule 433(d) under the Securities Act has been filed with the
Commission within the applicable time periods prescribed for such filings by Rule 433 under
the Securities Act.

	2.	 	Based on our inquiry of the Company’s [      ], no facts have come to our attention
that cause us to believe that (i) any of the opinions expressed in our opinion letter to you
dated July 14, 2010 are not true and correct as of the date hereof or (ii) any of the opinions
expressed in our opinion letter to you dated [      ], 20[      ] are not true and correct as of
the date hereof.

In addition, we have participated in conferences with officers of the Company at which the
contents of the Registration Statement, the Prospectus (including the Commission Documents
incorporated by reference therein) and each Prospectus Supplement, and each Issuer Free Writing
Prospectus (if any) (collectively, the “Offering Documents”) were discussed. The purpose of our
professional engagement was not to establish or to confirm factual matters set forth in the
Offering Documents. We have not undertaken to pass upon and are not passing upon, and we do not
assume any responsibility for, the accuracy, completeness or fairness of the statements contained
or incorporated by reference in the Offering Documents, and we have not made any independent check
or verification thereof. Moreover, many of the determinations required to be made in the
preparation of the Offering Documents involve matters of a non-legal nature.

Subject to the foregoing and on the basis of the information we gained in the course of
performing the services referred to above, we confirm to you that no facts came to our attention
that caused us to believe that the Registration Statement, as of its most recent effective date
(and at each deemed effective date with respect to the Investor pursuant to Rule 430B(f)(2)), and
as of the date hereof, together with the Commission Documents incorporated by reference therein, at
such times and as of the date hereof, insofar as such Offering Documents relate to the offering of
the Shares, contained an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not misleading, or that
the Prospectus, as of its date and as of the date hereof, together with the Commission Documents
incorporated by reference therein, at that date and as of the date hereof, and each Issuer Free
Writing Prospectus, on the date of its first use, insofar as such Offering Documents relate to the
offering of the Shares, contained an untrue statement of a material fact or omitted to state a
material fact necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading; it being understood that we express no belief with respect to the
financial statements, the notes and schedules thereto, other financial accounting or statistical
data, or assessments of or reports on the effectiveness of internal control over financial
reporting or exhibits included in, incorporated by reference in, or omitted from, any Offering
Document.

6

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