Document:

Common Stock Purchase Agreement

 Exhibit 10.1 
 COMMON STOCK PURCHASE AGREEMENT 
 Dated November 20, 2006 
 by and between 
 SYNTROLEUM
CORPORATION 
 and 
 AZIMUTH 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	  	4
	 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 Shares	  	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	  	8
	 Section 3.4
	  	Information	  	9
		
	Article IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	9
	 Section 4.1
	  	Organization, Good Standing and Power	  	9
	 Section 4.2
	  	Authorization, Enforcement	  	9
	 Section 4.3
	  	Capitalization	  	10
	 Section 4.4
	  	Issuance of Shares	  	10
	 Section 4.5
	  	No Conflicts	  	10
	 Section 4.6
	  	Commission Documents, Financial Statements	  	11
	 Section 4.7
	  	Subsidiaries	  	12
	 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	  	13
	 Section 4.12
	  	Compliance With Law	  	13
	 Section 4.13
	  	Certain Fees	  	14
	 Section 4.14    
	  	Operation of Business	  	14

  

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	 Section 4.15
	  	Environmental Compliance	  	15
	 Section 4.16
	  	Material Agreements	  	15
	 Section 4.17
	  	Transactions With Affiliates	  	15
	 Section 4.18
	  	Securities Act; NASD Conduct Rules	  	16
	 Section 4.19
	  	Employees	  	18
	 Section 4.20
	  	Use of Proceeds	  	18
	 Section 4.21
	  	Public Utility Holding Company Act and Investment Company Act Status	  	18
	 Section 4.22
	  	ERISA	  	18
	 Section 4.23
	  	Taxes	  	19
	 Section 4.24
	  	Insurance	  	19
	 Section 4.25
	  	Acknowledgement Regarding Investor’s Purchase of Shares	  	19
		
	Article V COVENANTS	  	19
	 Section 5.1
	  	Securities Compliance	  	19
	 Section 5.2
	  	Registration and Listing	  	19
	 Section 5.3
	  	Compliance with Laws	  	20
	 Section 5.4
	  	Keeping of Records and Books of Account; Foreign Corrupt Practices Act	  	20
	 Section 5.5
	  	Limitations on Holdings and Issuances	  	21
	 Section 5.6
	  	Other Agreements and Other Financings	  	21
	 Section 5.7
	  	Stop Orders	  	22
	 Section 5.8
	  	Amendments to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses	  	23
	 Section 5.9
	  	Prospectus Delivery	  	23
	 Section 5.10
	  	Selling Restrictions	  	24
	 Section 5.11
	  	Effective Registration Statement	  	25
	 Section 5.12
	  	Non-Public Information	  	25
	 Section 5.13    
	  	Broker/Dealer	  	25
	 Section 5.14
	  	Update of Disclosure Schedule	  	25
		
	 Article VI OPINION OF COUNSEL AND CERTIFICATE; CONDITIONS TO THE SALE AND PURCHASE OF THE SHARES
	  	25
	 Section 6.1
	  	Opinion of Counsel and Certificate	  	25
	 Section 6.2
	  	Conditions Precedent to the Obligation of the Company	  	25
	 Section 6.3
	  	Conditions Precedent to the Obligation of the Investor	  	27
		
	Article VII TERMINATION	  	29
	 Section 7.1
	  	Term, Termination by Mutual Consent	  	29
	 Section 7.2
	  	Other Termination	  	30
	 Section 7.3
	  	Effect of Termination	  	30
		
	Article VIII INDEMNIFICATION	  	30
	 Section 8.1
	  	General Indemnity	  	30
	 Section 8.2
	  	Indemnification Procedures	  	32
		
	 Article IX MISCELLANEOUS
	  	33
	 Section 9.1
	  	Fees and Expenses	  	33

  

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	 Section 9.2
	  	Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial	  	34
	 Section 9.3
	  	Entire Agreement; Amendment	  	35
	 Section 9.4
	  	Notices	  	35
	 Section 9.5
	  	Waivers	  	36
	 Section 9.6
	  	Headings	  	36
	 Section 9.7
	  	Successors and Assigns	  	36
	 Section 9.8
	  	Governing Law	  	36
	 Section 9.9
	  	Survival	  	36
	 Section 9.10
	  	Counterparts	  	37
	 Section 9.11
	  	Publicity	  	37
	 Section 9.12
	  	Severability	  	37
	 Section 9.13    
	  	Further Assurances	  	37
			
	Annex A.	  	Definitions	  	

  

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 COMMON STOCK PURCHASE AGREEMENT 
 This COMMON STOCK PURCHASE AGREEMENT, made and entered into on this 20th day of November 2006 (this “Agreement”), by and between Azimuth Opportunity Ltd., an international 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”). 
 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 $40,000,000 worth 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: 
 ARTICLE I 
 PURCHASE AND SALE OF
COMMON STOCK 
 Section 1.1 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 $40,000,000 (the “Total Commitment”) worth 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
in writing 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. 
 Section 1.2 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 by delivery of an opinion of counsel and a certificate of the Company as provided in Section 6.1 hereof, to the offices of Greenberg Traurig, LLP, 200 Park Avenue, New York,
New York 10166, at l0:00 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. 
 Section 1.3 The
Shares. The Company has duly authorized and reserved for issuance, and covenants to continue to reserve 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. 
 Section 1.4 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 briefly 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. If required under the Securities Act, 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. 
 ARTICLE II 
 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: 
 Section 2.1 Fixed Request Notice. Upon two Trading Days’ prior written notice to the Investor,
the Company may, from time to time in its sole discretion, provide a notice to the Investor of a Fixed Request before 9:30 a.m. (New York time) on the first Trading Day of the Pricing Period (the “Fixed Request Notice”),
substantially in the form attached hereto as Exhibit A. 
  

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 The Fixed Request Notice shall specify the Fixed Amount Requested, establish the Threshold Price for such Fixed Request,
designate the first 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. 
 Section 2.2 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 in writing 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;
provided, however, that the Company may not deliver any single Fixed Request Notice for a Fixed Amount Requested in excess of the lesser of: (i) the amount in the applicable Fixed Amount Requested column below and (ii) 2.5%
of the Market Capitalization: 
  

					
	 Threshold Price
	  	 Fixed Amount Requested
	  	 Discount Price

	Equal to or greater than $15.00	  	Not to exceed $9,000,000        	  	96.875% of the VWAP        
	Equal to or greater than $14.00 and less than $15.00	  	Not to exceed $8,500,000	  	96.875% of the VWAP
	Equal to or greater than $13.00 and less than $14.00	  	Not to exceed $8,000,000	  	96.625% of the VWAP
	Equal to or greater than $12.00 and less than $13.00	  	Not to exceed $7,500,000	  	96.375% of the VWAP
	Equal to or greater than $11.00 and less than $12.00	  	Not to exceed $7,000,000	  	96.375% of the VWAP
	Equal to or greater than $10.00 and less than $11.00	  	Not to exceed $6,500,000	  	96.125% of the VWAP
	Equal to or greater than $9.00 and less than $10.00	  	Not to exceed $6,000,000	  	96.125% of the VWAP
	Equal to or greater than $8.00 and less than $9.00	  	Not to exceed $5,500,000	  	95.875% of the VWAP
	Equal to or greater than $7.00 and less than $8.00	  	Not to exceed $5,000,000	  	95.625% of the VWAP
	Equal to or greater than $6.00 and less than $7.00	  	Not to exceed $4,500,000	  	95.125% of the VWAP
	Equal to or greater than $5.00 and less than $6.00	  	Not to exceed $4,000,000	  	94.875% of the VWAP
	Equal to or greater than $4.00 and less than $5.00	  	Not to exceed $3,500,000	  	94.625% of the VWAP
	Equal to or greater than $3.00 and less than $4.00	  	Not to exceed $3,000,000	  	94.375% of the VWAP
	Equal to or greater than $2.00 and less than $3.00	  	Not to exceed $2,500,000	  	94.125% of the VWAP
	Equal to or greater than $1.50 and less than $2.00	  	Not to exceed $2,250,000	  	93.875% of the VWAP
	Equal to or greater than $1.37 and less than $1.50	  	Not to exceed $2,000,000	  	93.750% of the VWAP

  

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 Anything to the contrary in this Agreement notwithstanding, at no time shall the Investor be required to
purchase more than $9,000,000 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”. 
 Section 2.3 Share
Calculation. Subject to Section 2.6, 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 =	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, 

  

	A =	0.09 (the “Multiplier”); provided, however, that if the number of Trading Days constituting a Pricing Period is decreased as set forth in
Section 2.8 hereof, then the Multiplier correspondingly shall be increased to equal the decimal equivalent (in 10-millionths) of a fraction, the numerator of which is one and the denominator of which equals the number of Trading Days in the
Pricing Period as so decreased, 

  

	B =	the Fixed Amount Requested, and 

  

	C =	the applicable Discount Price. 

 Section 2.4
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. 

Section 2.5 Reduction of Commitment. On the last Trading Day of each 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. 
  

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 Section 2.6 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 total amount of 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 original
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 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 (or is deemed to be) lower 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. 
 Section 2.7 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 (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 Agent Commission (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. 
 Section 2.8 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. 
  

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 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 quotient determined pursuant to the following equation: 
  

	D =	A x 1/B x (B – C), where: 

  

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

  

	A =	the Fixed Amount Requested, 

  

	B =	11 or, for purposes of this Section 2.8, such lesser number of Trading Days as the parties may mutually agree to, and 

  

	C =	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 clause (i) 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. 
 Section 2.9 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. 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 during the applicable Pricing
Period. 
  

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 Section 2.10 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 =	the number of shares of Common Stock to be issued in connection with such Optional Amount exercise, 

  

	A =	the Optional Amount Dollar Amount with respect to which the Investor has delivered an Optional Amount Notice, 

  

	B =	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 

  

	C =	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.

 Section 2.11 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. 
 Section 2.12 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 or 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 
  

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 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 integrated 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 the Company has timely provided the Investor with an Integration Notice
as provided in Section 5.6(ii) hereof. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE INVESTOR 
 The Investor hereby makes the following
representations and warranties to the Company: 
 Section 3.1 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. 
 Section 3.2 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. 
 Section 3.3 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 
  

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 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. 
 Section 3.4 Information. The Investor and its advisors have been furnished with 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. 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. 
 ARTICLE IV 
 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: 
 Section 4.1 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 such 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. 
 Section 4.2 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. 
  

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 Section 4.3 Capitalization. The authorized capital stock of the Company and the shares
thereof issued and outstanding as of the Effective Date are as set forth in the Commission Documents, except for issued and outstanding shares of capital stock resulting from the issuance of equity awards under the Company’s benefit and equity
plans and arrangements or the exercise or conversion, as the case may be, of exercisable or convertible securities outstanding as of the Effective Date or issued in connection with an Acceptable Financing. 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.
Except as set forth in the Commission Documents, there were no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue a substantial number of 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 in connection with the issuance of equity awards under the Company’s benefit and equity plans and arrangements existing
on the date hereof or other than in connection with an Acceptable Financing. 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 which would have a Material Adverse Effect. The Company has furnished or made available to the Investor 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”), and true and correct copies (redacted as appropriate) of all
executed resolutions of the Company’s Board of Directors (and committees thereof) relating to the capital stock of the Company (and transactions in respect thereof) since December 31, 2004 (except with respect to issuances of shares of
capital stock of the Company to directors or employees of the Company as fees or compensation that were duly approved by the Company’s Board of Directors or a committee thereof). 
 Section 4.4 Issuance of Shares. The Shares to be issued under this Agreement have been or will be duly authorized by all necessary
corporate action and, when paid for or issued in accordance with the terms hereof, the Shares shall be validly issued and outstanding, fully paid and nonassessable, and the Investor shall be entitled to all rights accorded to a holder and beneficial
owner of Common Stock. 
 Section 4.5 No Conflicts. The execution, delivery and performance by the Company of this
Agreement and the consummation by the Company of the transactions contemplated 
  

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 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 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). 
 Section 4.6 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 (by filing on the Commission’s electronic data gathering and retrieval system (“EDGAR”) to the Investor true and complete copies of the Commission Documents filed with the
Commission prior to the Effective Date (including, without limitation, the 2005 Form 10-K) and has delivered or made available (by filing on EDGAR) to the Investor 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 2005 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, 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 
  

 11 

 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. 
 (b) 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 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). 
 (c) The Company has timely filed with the Commission and made available (by filing on EDGAR) to the Investor 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. 
 (d) Grant Thornton LLP, who have expressed their audit opinions on the Company’s audited financial statements and
related schedules included or incorporated by reference in the Registration Statement and the Base Prospectus is, with respect to the Company, an independent registered public accounting firm as required by the rules of the Public Company Accounting
Oversight Board. 
 Section 4.7 Subsidiaries. The 2005 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. 
  

 12 

 Section 4.8 No Material Adverse Effect. Since December 31, 2005, 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
September 30, 2006 or (ii) continued losses from operations. 
 Section 4.9 Indebtedness. The Company’s
Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2006 sets forth, as of September 30, 2006, 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. There is no existing or continuing default or event of default in respect of any Indebtedness of the Company or any of its Subsidiaries.

 Section 4.10 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. 
 Section 4.11 Actions Pending. There is no action, suit, claim, investigation or proceeding pending, or to the knowledge of the Company threatened, 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, 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.

 Section 4.12 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. 
  

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 Section 4.13 Certain Fees. Except for the placement fee payable by the Company to
Reedland Capital Partners, an Institutional Division of the Financial West Group, Member NASD/SIPC (“Reedland”), which shall be set forth in a separate placement agency agreement 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. 
 Section 4.14 Operation of Business. (a) 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. 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. 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. This Section 4.14 does not relate
to environmental matters, such items being the subject of Section 4.15. 
 (b) The Company or one or more of its Subsidiaries owns or
possesses 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 the failure to so own or possess, individually or in the aggregate, would not 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, except as set forth in the Commission Documents, 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. 
  

 14 

 Section 4.15 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 best of 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. 
 Section 4.16 Material Agreements. Except as set forth or described 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”). 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 the Company has no knowledge of any basis for the assertion thereof, and neither the Company or any of its Subsidiaries nor, to the best
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. 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 best 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. 
 Section 4.17 Transactions With Affiliates. Except as set forth in
the Commission Documents, there are no loans, leases, agreements, contracts, royalty agreements, management 
  

 15 

 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. 
 Section 4.18 Securities
Act; NASD Conduct 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. 
 (i) The Company has prepared and filed with the Commission in accordance with the provisions of the Securities Act the Registration Statement, including
the Base Prospectus, relating to the Shares. The Registration Statement was declared effective by order of the Commission on June 6, 2001. 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. 
 (ii) The Company meets the requirements for the use
of Form S-3 under the Securities Act. The Commission has not notified the Company of any objection to the use of the form of the Registration Statement. The Registration Statement complied in all material respects on the date on which it was
declared effective by the Commission and on the Effective Date of this Agreement, and will comply in all material respects on each applicable Fixed Request Exercise Date and on each applicable Settlement Date, 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 on the Effective Date of this Agreement and shall not on each applicable Fixed Request
Exercise Date and 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 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 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 on each applicable Settlement Date contain an untrue statement of a material fact or omit to state a material fact required to be stated 
  

 16 

 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. 
 (iii) In accordance with Rule 2710(b)(7)(C)(i) of the Conduct Rules of
the National Association of Securities Dealers, Inc., the offering of the Shares pursuant to this Agreement has been registered with the Commission on Form S-3 under the Securities Act pursuant to the standards for Form S-3 in effect prior to
October 21, 1992, and the Shares are being offered pursuant to Rule 415 promulgated under the Securities Act. 
 (iv) Each Prospectus
Supplement required to be filed pursuant to Sections 1.4 and 5.9 hereof, 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. 
 (v) 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), without taking account of any determination by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an Ineligible Issuer. 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. 
 (vi) 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. 
  

 17 

 Section 4.19 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. 
 Section 4.20 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. 
 Section 4.21 Public Utility Holding Company Act and Investment Company Act Status. The Company is not a
“holding company” or a “public utility company” as such terms are defined in the Public Utility Holding Company Act of 1935, as amended. 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. 
 Section 4.22
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. 
  

 18 

 Section 4.23 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 best of the Company’s knowledge, proposed against it which would have a Material Adverse Effect. 
 Section 4.24 Insurance. The Company carries, or is covered by, insurance in such amounts and covering such risks as 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. 
 Section 4.25 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. 
 ARTICLE V 
 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: 
 Section 5.1 Securities
Compliance. The Company shall notify the Commission and the Trading Market, as applicable, 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. 
 Section 5.2 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, and shall comply with the Company’s reporting, filing and other obligations under the bylaws, listed securities
maintenance standards and other rules of the Trading Market. 
  

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 Section 5.3 Compliance with Laws. 
 (i) 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 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. 
 (ii) 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. 
 Section 5.4 Keeping of Records and Books of Account; Foreign Corrupt Practices Act. 
 (i) 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
which are sufficient to provide reasonable assurance that (a) transactions are executed with management’s authorization; (b) transactions are recorded as necessary to permit preparation of the consolidated financial statements of the
Company and to maintain accountability for the Company’s consolidated assets; (c) access to the Company’s assets is permitted only in accordance with management’s authorization; and (d) the reporting of the Company’s
assets is compared with existing assets at regular intervals. 
 (ii) 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 their 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. 
  

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 (iii) From time to time from and after the period beginning with the second 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. 
 Section 5.5 Limitations on Holdings and Issuances. At no time during the term of
this Agreement shall the Investor directly or indirectly own more than 9.9% of the then issued and outstanding shares of Common Stock. The Company shall not be obligated to issue and the Investor shall not be obligated to purchase any shares of
Common Stock which would result in the issuance under this Agreement to the Investor at any time of Shares which, when aggregated with all other shares of Common Stock then owned beneficially by the Investor, would result in the beneficial ownership
by the Investor of more than 9.9% of the then issued and outstanding shares of the Common Stock. 
 Section 5.6 Other Agreements
and Other Financings. 
 (i) 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 their obligations under this Agreement, including, without
limitation, the obligation of the Company to deliver Shares to the Investor in respect of a Fixed Request on the applicable Settlement Date. 
 (ii) The Company shall notify the Investor, within 48 hours (excluding Saturdays, Sundays and public holidays), 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 immediately (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 an Other Financing which would likely be integrated 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 simultaneously 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. 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

  

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 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
exchangeable for Common Stock other than in connection with a Below Market Offering; (2) shares of Common Stock or securities convertible into 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 or exchange of equity awards or
convertible or exchangeable securities outstanding as of the Effective Date; (4) shares of Common Stock and/or warrants 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 exercise 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. 
 Section 5.7 Stop Orders. The Company shall advise the Investor immediately 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 with respect thereto;
(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 of the suspension of qualification of the Shares for offering or sale in any
jurisdiction or the 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 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 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 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. If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement, the Company shall use commercially reasonable efforts to
obtain the withdrawal of such order at the earliest possible time. 
  

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 Section 5.8 Amendments to the Registration Statement; Prospectus Supplements; Free Writing
Prospectuses. 
 (i) 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 immediately 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. 
 (ii) The Company agrees that, unless it obtains the prior written
consent of the Investor, it has not made and 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 agrees that, unless it obtains the prior written consent of the Company, it has not made and 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. 
 Section 5.9 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.

  

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 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 Prospectus or any Permitted Free Writing Prospectus or should be set forth therein in order to make the statements made therein, in the light of the circumstances
under which they were made, not misleading, or if it is necessary to 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 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. 
 Section 5.10 Selling Restrictions. 
 (i) 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 (within the
meaning of the Exchange Act) nor any entity managed by the Investor shall, directly or indirectly, sell any securities of the Company, except the Shares that it owns or has the right to purchase as provided in a Fixed Request Notice. During the
Restricted Period, neither the Investor or any of its affiliates nor any entity managed by the Investor shall sell any shares of Common Stock of the Company it does not “own” or have the unconditional right to receive under the terms of
this Agreement (within the meaning of Rule 200 of Regulation SHO promulgated by the Commission under the Exchange Act), including Shares in any account of the Investor or in any account directly or indirectly managed by the Investor or any of its
affiliates or any entity managed by the Investor. Without limiting the generality of the foregoing, prior to and during the Restricted Period, neither the Investor nor any of its affiliates nor any entity managed by the Investor or any of its
affiliates shall enter into a short position with respect to shares of Common Stock of the Company, including in any account of the Investor’s or in any account directly or indirectly managed by the Investor or any of its Affiliates or any
entity managed by the Investor, except that the Investor may sell Shares that it is obligated to purchase under a pending Fixed Request Notice but has not yet taken possession of so long as the Investor (or the Broker-Dealer, as applicable) covers
any such sales with the Shares purchased pursuant to such Fixed Request Notice; provided, however, that the Investor (or the Broker-Dealer, as applicable) shall not be required to cover any such sales with the Shares purchased pursuant
to such Fixed Request Notice if (a) the Fixed Request is terminated by mutual agreement of the Company and the Investor and, as a result of such termination, no 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. Prior to and during the Restricted Period, the Investor shall not grant any option to purchase
or acquire any right to dispose or otherwise dispose for value of any shares of Common Stock or any securities convertible into or exercisable or exchangeable for, or warrants to purchase, any shares 
  

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 of Common Stock, or enter into any swap, hedge or other agreement that transfers, in whole or in part, the economic risk
of ownership of the Common Stock, except for such sales expressly permitted by this Section 5.10(i). 
 (ii) In addition to the
foregoing, in connection with any sale of the Company’s securities (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. 
 Section 5.11 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. 
 Section 5.12 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
simultaneous public announcement thereof is made by the Company in the manner contemplated by Regulation FD. 
 Section 5.13
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. 
 Section 5.14 Update of 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 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 remedies with respect thereto. 
 ARTICLE VI 
 OPINION OF COUNSEL AND CERTIFICATE; CONDITIONS TO THE SALE AND 
 PURCHASE OF THE SHARES 
 Section 6.1 Opinion of Counsel and Certificate. Simultaneously with the execution and delivery of this Agreement, the Investor has received and relied upon (i) an opinion of outside counsel to the Company, dated the
Effective Date, in the form mutually agreed to by the parties hereto, and (ii) a certificate from the Company, dated the Effective Date, in the form of Exhibit C hereto. 
 Section 6.2 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 
  

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 Request Notice 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. 
 (i) Accuracy of the Investor’s Representations and Warranties. The representations and warranties of the Investor contained in Article
III of this Agreement (i) 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 (ii) 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. 
 (ii) 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 of Shares registered under the Registration Statement
which are in an amount (A) as of the Effective Date, not less than the maximum dollar amount worth of Shares issuable pursuant to all Fixed Request Notices and Optional Amounts during the Investment Period and (B) as of the applicable
Fixed Request Exercise Date, 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. 
 (iii) 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. 
 (iv) 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. 
 (v) 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 
  

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 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 market which, in each case, in the reasonable
judgment of the Company, makes it impracticable or inadvisable to issue the Shares. 
 (vi) 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. 
 (vii) 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. 
 Section 6.3 Conditions Precedent to the Obligation of the
Investor. The obligation hereunder of the Investor to accept a Fixed Request 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. 
 (i) Accuracy of the Company’s Representations and Warranties. The representations and
warranties of the Company contained in Article IV of this Agreement (i) 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 (ii) 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. 
 (ii) 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 
  

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 have a maximum dollar amount of Shares registered under the Registration Statement which are in an amount (A) as of
the Effective Date, not less than the maximum dollar amount worth of Shares issuable pursuant to all Fixed Request Notices and Optional Amounts during the Investment Period and (B) as of the applicable Fixed Request Exercise Date, 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, 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. 
 (iii) 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, 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 market which, in each case, in the reasonable judgment of the Investor, makes it impracticable or inadvisable to purchase the Shares. 

(iv) 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. 
 (v) 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. 
 (vi) 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. 
  

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 (vii) 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. 
 (viii) 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. 
 (ix) Notification of Listing of Shares. The Company shall have submitted to the Trading Market a notification form of listing of additional shares related to the Shares issuable pursuant to such Fixed Request or Optional
Amount in accordance with the bylaws, listed securities maintenance standards and other rules of the Trading Market. 
 (x) Opinions 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 and an opinion from in-house 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 and an opinion “bring down” from in-house counsel to the Company in the form mutually agreed to by the parties hereto. 
 (xi) 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. On the
30th day of the third month in each calendar quarter during the Investment Period, the Company shall have paid by
wire transfer of immediately available funds (a) to an account designated by the Investor, the due diligence expenses incurred by the Investor and (b) to an account designated by the Investor’s counsel, the fees and expenses of the
Investor’s counsel, in each case, in accordance with the provisions of the second sentence of Section 9.1(i) of this Agreement. 
 ARTICLE VII 
 TERMINATION 
 Section 7.1 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 Shares 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). The Company may terminate this Agreement effective upon three Trading Days’ prior written
notice to the Investor under Section 9.4; provided, however, that such termination shall not occur during a Pricing Period or prior to a Settlement Date. 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 
  

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 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. 
 Section 7.2 Other Termination.
If the Company provides the Investor with an Other Financing Notice (other than in respect of an underwritten public offering or an Acceptable Financing) or an Integration Notice, 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 notify
the Investor and the Investor shall have the right to terminate this Agreement at any time if: (i) any condition, occurrence, state of facts or event constituting a Material Adverse Effect has occurred and is continuing; (ii) a Material
Change in Ownership has occurred; 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.

 Section 7.3 Effect of Termination. In the event of termination by the Company or the Investor, 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 as provided in Section 9.9 hereof. 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. 
 ARTICLE VIII 
 INDEMNIFICATION

 Section 8.1 General Indemnity. 
 (i) Indemnification by the Company. The Company shall indemnify and hold harmless the Investor, the Broker-Dealer, each affiliate, employee, representative and advisor of and to the Investor and the
Broker-Dealer, and each person, if any, who controls the Investor or the Broker-Dealer 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, the Broker-Dealer 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 (i) any violation of law (including United States federal securities laws) in connection with the transactions contemplated by
this Agreement by 
  

 30 

 the Company or any of its Subsidiaries, affiliates, officers, directors or employees, (ii) 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 (iii) 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 resulting 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, the Broker-Dealer and each such controlling person promptly upon demand (with accompanying presentation of documentary evidence) for all legal and other costs and expenses reasonably incurred by the Investor, the
Broker-Dealer 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. 
 (ii) Indemnification by the Investor. The Investor shall indemnify and hold harmless the Company, each of its directors and officers, 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 
  

 31 

 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 (i) any violation of law (including United States federal securities laws) in connection with the transactions contemplated by this Agreement by
the Investor or any of its affiliates, officers, directors or employees, or (ii) 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 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.

 Section 8.2 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 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 
  

 32 

 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, (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement, (iv) such settlement includes an unconditional release of the indemnifying party from all further liability for losses
arising out of such action or claim, (v) such settlement does not include an injunction that will materially adversely affect any indemnifying party, and (vi) such settlement does not admit liability or fault on the part of any
indemnifying party. 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. 
 ARTICLE IX 
 MISCELLANEOUS 
 Section 9.1 Fees and Expenses. 
 (i) 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, 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 
  

 33 

 Permitted Free Writing Prospectus. In addition, the Company shall pay, on the 30th day of the third month in each calendar quarter during the Investment Period, up to $12,500, representing (x) the due diligence expenses
incurred by the Investor during the Investment Period and (y) the attorneys’ fees and expenses incurred by the Investor in connection with ongoing legal due diligence of the Company, any amendments, modifications or waivers of this
Agreement and review of Prospectus Supplements, Permitted Free Writing Prospectuses, opinion “bring downs” and all other related documents to be delivered by the Company and its counsel in connection with a Fixed Request Exercise Date and
the applicable Settlement Date. 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. Notwithstanding the foregoing, the
Company shall not be responsible for any such amounts based on the income or capital gains of the Investor. 
 (ii) If the Company issues a
Fixed Request Notice and fails to deliver the Shares to the Investor on the applicable Settlement Date and such failure continues for 10 Trading Days, the Company shall pay the Investor, in cash (or, at the option of the Investor, in shares of
Common Stock which have not been registered under the Securities Act), 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 have been delivered, and an additional 2.0% for each additional 30-day period thereafter until the Shares have
been delivered, which amount shall be prorated for such periods less than thirty 30 days. 
 Section 9.2 Specific Enforcement,
Consent to Jurisdiction, Waiver of Jury Trial. 
 (i) 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 this being in addition to any other remedy to which either party may be entitled by law or equity.

 (ii) Each of the Company and the Investor (a) hereby irrevocably submits to the jurisdiction of the United States District Court and
other courts of the United States sitting in the State 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 that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that 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. Nothing in this Section 9.2 shall affect or limit any right to serve process in any other manner permitted by law. 
  

 34 

 (iii) 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. 
 Section 9.3 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. 
 Section 9.4 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
		  	4322 South 49th West Avenue
		  	Tulsa, Oklahoma
		  	Telephone Number: (918) 592-7900
		  	Fax: (918) 592-7979
		  	Attention: Richard Edmonson
		
	With copies to:	  	Baker Botts L.L.P.
		  	910 Louisiana St.
		  	Houston, TX 77002
		  	Telephone Number: (713) 229-1113
		  	Fax: (713) 229-2713
		  	Attention: John Geddes, Esq.

  

 35 

			
	If to the Investor:	  	Azimuth Opportunity Ltd.
		  	c/o Fortis Prime Fund Solutions (BVI) Limited
		  	P.O. Box 761, 1st Floor
		  	James Frett Building
		  	Road Town, Tortola
		  	British Virgin Islands
		  	Telephone Number: (284) 494-6046
		  	Fax: (284) 494-6898
		  	Attention: Becky McGinnis
		
	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: Clifford E. Neimeth, Esq.
		  	                    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. 
 Section 9.5 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. 
 Section 9.6 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. 
 Section 9.7 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. 
 Section 9.8 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. 
 Section 9.9
Survival. The representations and warranties of the Company and the Investor contained in Articles III and IV and the covenants contained in Article V shall survive the execution and delivery hereof until the termination of this
Agreement, and the agreements and covenants set forth in Article VIII of this Agreement shall survive the execution and delivery hereof. 
  

 36 

 Section 9.10 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 transmission, the party using such means of delivery shall cause four additional executed signature pages to be physically delivered to the other parties
within five days of the execution and delivery hereof. 
 Section 9.11 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. 
 Section 9.12 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. 
 Section 9.13 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] 
  

 37 

 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/ Greg G. Jenkins

	Name:	 	Greg G. Jenkins
	Title:	 	 Executive Vice President and Chief
 Financial
Officer

	
	AZIMUTH OPPORTUNITY LTD.:
		
	By:	 	 /s/ Peter W. Poole

	Name:	 	Peter W. Poole
	Title:	 	Director

  

 38 

 ANNEX A TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 DEFINITIONS 
 (a) “Acceptable Financing” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (b) “Aggregate Limit” shall have the meaning assigned to such term in Section 1.1 hereof. 
 (c) “Base Prospectus” shall mean the Company’s prospectus, dated November 20, 2006, a preliminary form of which is included in
the Registration Statement, including the documents incorporated by reference therein. 
 (d) “Below Market Offering” shall
have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (e) “Broker-Dealer” shall have the meaning
assigned to such term in Section 5.13 hereof. 
 (f) “Bylaws” shall have the meaning assigned to such term in
Section 4.3 hereof. 
 (g) “Charter” shall have the meaning assigned to such term in Section 4.3 hereof.

 (h) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (i) “Commission” shall mean the Securities and Exchange Commission or any successor entity. 
 (j) “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 January 1,
2006 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, 2005 (the “2005 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. 
 (k) “Common
Stock” shall have the meaning assigned to such term in the Recitals. 
 (l) “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. 

 (m) “Current Report” shall have the meaning assigned to such term in Section 1.4
hereof. 
 (n) “Discount Price” shall have the meaning assigned to such term in Section 2.2 hereof. 
 (o) “Effective Date” shall mean November 20, 2006. 
 (p) “Environmental Laws” shall have the meaning assigned to such term in Section 4.15 hereof. 
 (q) “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 (r) “Event
Period” shall have the meaning assigned to such term in Section 7.2 hereof. 
 (s) “Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder. 
 (t) “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. 
 (u) “Fixed Request” means the transactions contemplated under Sections 2.1 through 2.8 of this Agreement. 
 (v) “Fixed Request Amount” means the actual amount of proceeds received by the Company pursuant to a Fixed Request under this Agreement. 
 (w) “Fixed Request Exercise Date” shall have the meaning assigned to such term in Section 2.2 hereof. 
 (x) “Fixed Request Notice” shall have the meaning assigned to such term in Section 2.1 hereof. 
 (y) “Free Writing Prospectus” shall mean a “free writing prospectus” as defined in Rule 405 promulgated under the Securities
Act. 
 (z) “GAAP” shall mean generally accepted accounting principles in the United States of America as applied by the
Company. 
 (aa) “Governmental Licenses” shall have the meaning assigned to such term in Section 4.14(a) hereof.

 (bb) “Indebtedness” shall have the meaning assigned to such term in Section 4.9 hereof. 
 (cc) “Integration Notice” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
  

 (dd) “Intellectual Property” shall have the meaning assigned to such term in
Section 4.14(b) hereof. 
 (ee) “Investment Period” shall have the meaning assigned to such term in Section 7.1
hereof. 
 (ff) “Issuer Free Writing Prospectus” shall mean an “issuer free writing prospectus” as defined in Rule
433 promulgated under the Securities Act. 
 (gg) “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.

 (hh) “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 in no event shall any of
the following changes, in and of themselves, constitute a “Material Adverse Effect”: (i) any change resulting from the announcement of any of the transactions contemplated in this Agreement; or (ii) any change resulting from
compliance by the Company with the terms of, or the taking of any action contemplated by, this Agreement. 
 (ii) “Material
Agreements” shall have the meaning assigned to such term in Section 4.16 hereof. 
 (jj) “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. 
 (kk) “Multiplier” shall have the meaning assigned to such term in Section 2.3 hereof. 
 (ll) “NASDAQ” means the NASDAQ Global Market or any successor thereto. 
 (mm) “Optional Amount” means the transactions contemplated under Sections 2.9 through 2.11 of this Agreement. 
 (nn) “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. 
 (oo) “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. 
 (pp) “Optional Amount Threshold Price” shall have the meaning assigned to such term in Section 2.1 hereof. 
 (qq) “Other Financing” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (rr) “Other Financing Notice” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (ss) “Permitted Free Writing Prospectus” shall have the meaning assigned to such term in Section 5.8(ii) hereof. 
 (tt) “Plan” shall have the meaning assigned to such term in Section 4.22 hereof. 
 (uu) “Pricing Period shall mean a period of 11 consecutive Trading Days commencing on the day of delivery of a Fixed Request Notice (or, if
the Fixed Request Notice is delivered after 9:30 a.m. (New York time), on the next Trading Day), or such other period mutually agreed upon by the Investor and the Company. 

 (vv) “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. 
 (ww) “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. 
 (xx) “Reduction Notice” shall have the meaning assigned to such term in
Section 2.8 hereof. 
 (yy) “Registration Statement” shall mean the registration statement on Form S-3, Commission File
Number 333-62290, 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 the documents incorporated by
reference therein and the information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430A or Rule 430B under the Securities Act. 
 (zz) “Restricted Period” shall have the meaning assigned to such term in Section 5.10 hereof. 
 (aaa) “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder. 
 (bbb) “Settlement Date” shall have the meaning assigned to such term in Section 2.7 hereof. 
 (ccc) “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. 
 (ddd) “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. 
 (eee) “SOXA” shall have the meaning assigned to such term
in Section 4.6(c) hereof. 
 (fff) “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. 
 (ggg) “Total Commitment” shall have the meaning assigned to such term in Section 1.1
hereof. 
 (hhh) “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 $1.37 per share unless the Company and the Investor mutually shall otherwise agree in writing. 
 (iii) “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. 
 (jjj) “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 American Stock Exchange, the New York Stock Exchange or the NASDAQ. 
 (kkk) “Trading Market Limit” means that
number of shares which is one less than 20.0% of the issued and outstanding shares of the Common Stock as of the Effective Date. 
 (lll)
“VWAP” shall mean the daily volume weighted average price (based on a Trading Day from 9:30 p.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. 

(mmm) “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 November 20, 2006, (the “Purchase Agreement”) between
Syntroleum Corporation, a corporation organized and existing under the laws of the State of Delaware (the “Company”), and Azimuth Opportunity Ltd., an international 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 Request Amount 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 and Number of Shares of Common Stock Currently Unissued under the Registration Statement;	  	  

		
	Dollar Amount and Number of Shares 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 November 20, 2006 (the “Purchase Agreement”) between
Syntroleum Corporation, a corporation organized and existing under the laws of the State of Delaware (the “Company”), and Azimuth Opportunity Ltd., an international 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 November 20,
2006 (the “Agreement”), by and between the Company and Azimuth Opportunity Ltd., an international 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
Azimuth Opportunity Ltd. (the “Investor”) pursuant to Article II of the Common Stock Purchase Agreement, dated November 20, 2006, 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 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
[                    ], 200[    ]. 
  

			
	By:	 	  

	Name:	 	  

	Title:Chittenden Corporation Senior Executive Severance Agreement

 Exhibit 10.1 
 CHITTENDEN CORPORATION 
 Senior Executive Severance Agreement 
 AGREEMENT made as of this              day of
             , 2006 by and among Chittenden Corporation, a Vermont corporation with its principal place of business in Burlington, Vermont (the “Company” and the
“Employer”), and              (the “Executive”), an individual presently employed as the
             of the Company. 
 1. Purpose. The Company
considers it essential to the best interest of its stockholders to foster the continuous employment of key management personnel. The Board of Directors of the Company (the “Board”) recognizes, however, that, as is the case with many
publicly held corporations, the possibility of a Change in Control (as defined in Section 2 hereof) exists and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or
distraction of management personnel to the detriment of the Company and its stockholders. Therefore, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the
Employer’s management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control. Nothing in this Agreement shall be construed
as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Executive and the Employer, the Executive shall not have any right to be retained in the employ of the Employer. 
 2. Change in Control. A “Change in Control” shall mean the occurrence of any one of the following events: 
 (a) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (other than the Company or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 25% of the number of the Company’s then outstanding securities; or 
 (b) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board, and any new director
(other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Section 2(a), (c) or (d) of this Section 2) whose election by the Board or nomination for
election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was
previously so approved, cease by any reason to constitute at least a majority thereof; or 
 (c) the stockholders of the
Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto 
  

 1 

 continuing to represent (either by remaining outstanding or being converted into voting securities of the
surviving entity) more than 60% of the number of outstanding securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; provided that a Change in Control will occur in the circumstances described
above only if the merger or consolidation is ultimately consummated; or 
 (d) the stockholders of the Company approve a plan
of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
 3. Terminating Event. A “Terminating Event” shall mean any of the events provided in this Section 3 occurring within two years subsequent to a Change in Control as defined in Section 2:

 (a) termination by the Employer of the employment of the Executive with the Employer for any reason other than for gross
misconduct or due to death or disability of the Executive; or 
 (b) termination by the Executive of the Executive’s
employment with the Employer for any reason, at Executive’s option. 
 A Terminating Event shall not be deemed to have occurred pursuant to this
Section 3 solely as a result of the Executive being an employee of any direct or indirect successor to the business or assets of the Employer, rather than continuing as an employee of the Employer following a Change in Control. For purposes of
this Agreement, “gross misconduct” shall mean (i) Executive’s willful misconduct in the performance of his or her duties which is materially injurious to the Employer or (ii) Executive’s indictment for, or conviction
of, or pleading guilty or nolo contendere to, a felony; and “disability” shall have the meaning given to such term in the Chittenden Corporation Long-Term Disability Plan. 
 4. Special Termination Payments. In the event a Terminating Event occurs within two years after a Change in Control: 
 (a) the Employer shall pay to the Executive an amount equal to the sum of the following: 
 (i) X times the amount of the highest base salary of the Executive in effect at or following a Change in Control, determined prior to any
reductions for pre-tax contributions to a cash or deferred arrangement or a cafeteria plan; and 
 (ii) X times the amount of
the highest target bonus of the Executive in effect at or following a Change in Control; and 
 (iii) X times the amount equal
to the Core Contribution that would have been contributed on behalf of the Executive pursuant to Section 4.2 of the Chittenden Corporation Incentive Savings and Profit Sharing Plan in the event Executive continued employment with the Employer
until the end of the plan year in which the Terminating Event occurs; and 
 (iv) X times the amount equal to the 401(k) match
and the profit sharing portion of the 401(k) contribution that would have been contributed on behalf of the Executive in the event Executive continued employment with the Employer until the end of the plan year in which the Terminating Event occurs;
and 
  

 2 

 (v) X times the amount equal to any payment that would have been contributed on behalf of
the Executive under the Chittenden Corporation Supplemental Executive Savings Plan in the event Executive continued employment with the Employer until the end of the plan year in which the Terminating Event occurs; and 
 Said amount shall be paid in one lump sum payment no later than thirty-one (31) days following the Date of Termination (as such term is defined in
Section 8(b)), except that, if Executive is a specified employee within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and such delay is required to avoid subjecting Executive to the
additional taxes imposed under such Section, then such payment shall be made on the first business day after the six-month anniversary of Executive’s Date of Termination; and 
 (b) the Employer shall, regardless of whether Employee is unable to utilize Company related benefit plans, continue to provide to the
Executive at Employer’s expense all medical, dental, or other welfare benefits received by Executive in the year of a Change in Control, on the same terms and same conditions as though the Executive had remained an active employee, for
             months, but in no event beyond the earlier of (i) December 31 of the second calendar year commencing after the Terminating Event or (ii) the day on which
Executive becomes eligible to receive any group medical, dental, or other welfare benefits as the case may be, under any plan or program of any other employer for active employees (the “Benefit Termination Date”). At Executive’s
election, the Employer will be required to pay to Executive the cash equivalent of the foregoing, determined by a reputable accounting or actuarial firm selected by Executive and paid for by Employer. Following such Benefit Termination Date, the
Executive shall be eligible to participate in Employer’s medical and dental plans and programs until Executive becomes eligible for Medicare. The Executive will be responsible for the full premium expense of this coverage. 
 (c) the Employer shall provide Executive with professional advice of a financial planner, or actuary or an accountant of Executive’s
choice to help Executive determine which elections Executive will make with respect to this Agreement; and 
 (d) Employer
shall pay for outplacement services selected by Executive and shall provide an office and clerical assistance to the Executive for one year after a termination of Executive’s employment; and 
 (e) the Employer shall pay to the Executive all reasonable legal and mediation fees and expenses incurred by the Executive in obtaining or
enforcing any right or benefit provided by this Agreement, except in cases involving frivolous or bad faith litigation initiated by the Executive. 
 5. Additional Benefits. 
 (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined
that any compensation, payment or distribution by the Employer to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Severance Payments”),
would be subject to the excise tax imposed by Section 4999 of the Code, or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and 
  

 3 

 penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled
to receive an additional payment (a “Gross-Up Payment”) such that the net amount retained by the Executive, after deduction of any Excise Tax on the Severance Payments, any Federal, state, and local income tax, employment tax and Excise
Tax upon the payment provided by this subsection, and any interest and/or penalties assessed with respect to such Excise Tax, shall be equal to the Severance Payments. 
 (b) Subject to the provisions of Section 5(c), all determinations required to be made under this Section 5, including whether a
Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be determined by Vitale, Caturano & Company or any other nationally recognized accounting firm selected by the Employer (the “Accounting Firm”), which
shall provide detailed supporting calculations both to the Employer and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Employer or the Executive. For
purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the Gross-Up
Payment is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes
which could be obtained from deduction of such state and local taxes. All Gross-Up Payments will be paid to Executive as and when payments are made to Executive that are subject to the Excise Tax, and in relation to the Excise Tax payable with
respect to each such payment, but in no event later than two and one-half months following the end of the taxable year in which the corresponding amount payable as a Gross-Up Payment is no longer subject to a “substantial risk of
forfeiture” (as such term is defined for purposes of Section 409A of the Code). If the Accounting Firm determines that no Excise Tax is payable by the Executive, the Employer shall furnish the Executive with an opinion of counsel that
failure to report the Excise Tax on the Executive’s applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the Employer and the
Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the
Employer should have been made (an “Underpayment”) or Gross-Up Payments are made by the Employer which should not have been made (“Overpayment”). In the event that the Employer exhausts its remedies pursuant to Section 5(c)
and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred, consistent with the calculations required to be made hereunder, and any such
Underpayment, and any interest and penalties imposed on the Underpayment and required to be paid by the Executive in connection with the proceedings described in Section 5(c), shall be promptly paid by the Employer to or for the benefit of the
Executive. In the event the amount of the Gross-Up Payment exceeds the amount necessary to reimburse Executive for the Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that has been made and any such Overpayment
(together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by Executive (to the extent Executive has received a refund if the applicable Excise Tax has been paid to the Internal Revenue Service) to or
for the benefit of the Employer. Executive shall cooperate, to the extent Executive’s expenses are reimbursed by the Employer, with any reasonable requests by the Employer in connection with any contests or disputes with the Internal Revenue
Service in connection with the Excise Tax. 
  

 4 

 (c) The Executive shall notify the Employer in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Employer of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 10 business days after the Executive knows of such claim and shall
apprise the Employer of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the
Employer (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Employer notifies the Executive in writing prior to the expiration of such period that they desire to contest such claim,
provided that the Employer has set aside adequate reserves to cover the Underpayment and any interest and penalties thereon that may accrue, the Executive shall: 
 (i) give the Employer any information reasonably requested by the Employer relating to such claim, 
 (ii) take such action in connection with contesting such claim as the Employer shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Employer, 
 (iii) cooperate with the Employer in good faith in order effectively to contest such claim, and 
 (iv) permit the
Employer to participate in any proceedings relating to such claim; provided, however, that the Employer shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs and expenses. Without
limitation on the foregoing provisions of this Section 5(c), the Employer shall control all proceedings taken in connection with such contest and, at their sole option, may pursue or forego any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of such claim and may, at their sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive
agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Employer shall determine; provided, however, that if the Employer directs the
Executive to pay such claim and sue for a refund, the Employer shall advance the amount of such payment to the Executive on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax, including interest or penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Employer’s control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issues raised by the Internal Revenue Service or any other taxing authority. 
  

 5 

 (d) If, after the receipt by the Executive of an amount advanced by the Employer pursuant
to Section 5(c), the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Employer complying with the requirements of Section 5(c)) promptly pay to the Employer the amount of such
refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Employer pursuant to Section 5(c), a determination is made that the Executive shall
not be entitled to any refund with respect to such claim and the Employer does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance shall be an offset, to the extent thereof, to the amount of Gross-Up Payment required to be paid. 
 6. Term. This Agreement shall take effect on the date first set forth above and shall terminate upon the later of (a) December 31, 2011
or (b) two years following a Change in Control that occurs prior to December 31, 2011. 
 7. Withholding. All payments made
by the Employer under this Agreement shall be subject to any tax or other amounts required to be withheld by the Employer under applicable law. 
 8. Notice and Date of Termination; Disputes; Etc. 
 (a) Notice of Termination. After a Change in
Control and during the term of this Agreement, any purported termination of the Executive’s employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in
accordance with this Section 8. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and the Date of Termination.

 (b) Date of Termination. “Date of Termination,” with respect to any purported termination of the
Executive’s employment after a Change in Control and during the term of this Agreement, shall mean the date specified in the Notice of Termination. In the case of a termination by the Executive, the Date of Termination shall not be less than 15
days from the date such Notice of Termination is given. Notwithstanding Section 3(a) of this Agreement, in the event that the Executive gives a Notice of Termination to the Employer, the Employer may unilaterally accelerate the Date of
Termination and such acceleration shall not result in a second Terminating Event for purposes of Section 3(a) of this Agreement. 
 (c) No Mitigation. The Employer agrees that, if the Executive’s employment by the Employer is terminated during the term of this Agreement, the Executive is not required to seek other employment or to
attempt in any way to reduce any amounts payable to the Executive by the Employer pursuant to Sections 4 and 5 hereof. Further, the amount of any payment provided for in this Agreement shall not be reduced by any compensation earned by the Executive
as a result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Employer, or otherwise, except as expressly provided in this Agreement. 
 (d) Mediation of Disputes. The parties shall endeavor in good faith to settle within 90 days any controversy or claim arising out
of or relating to this Agreement or the breach thereof through mediation with JAMS, Endispute or similar organizations. If the controversy or claim is not resolved within 90 days, the parties shall be free to pursue other legal remedies in law or
equity. 
  

 6 

 9. Assignment; Prior Agreements. Neither the Employer nor the Executive may make any assignment of
this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other party, and without such consent any attempted transfer shall be null and void and of no effect. This Agreement shall inure to the
benefit of and be binding upon the Employer and the Executive, their respective successors, executors, administrators, heirs and permitted assigns. In the event of the Executive’s death after a Terminating Event but prior to the completion by
the Employer of all payments due him under Section 4 and 5 of this Agreement, the Employer shall continue such payments to the Executive’s beneficiary designated in writing to the Employer prior to his death (or to his estate, if the
Executive fails to make such designation). 
 10. Enforceability. If any portion or provision of this Agreement shall to any extent be
declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable,
shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 
 11. Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party to require the performance of any term or obligation of this
Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. 
 12. Notices. Any notices, requests, demands, and other communications provided for by this Agreement shall be sufficient if in writing and
delivered in person or sent by registered or certified mail, postage prepaid, to the Executive at the last address the Executive has filed in writing with the Employer, or to the Employer at its main office, attention to the Board of Directors.

 13. Effect on Other Plans. Nothing in this Agreement shall be construed to limit the rights of the Executive under the
Employer’s benefit plans, programs or policies. 
 14. Amendment. This Agreement may be amended or modified only by a written
instrument signed by the Executive and by a duly authorized representative of the Employer. 
 15. Governing Law. This is a Vermont
contract and shall be construed under and be governed in all respects by the laws of the State of Vermont. 
 16. Obligations of
Successors. In addition to any obligations imposed by law upon any successor to the Employer, the Employer shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of the Employer to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Employer would be required to perform if no such succession had taken place. 
 IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Employer by its duly authorized officer and by Executive, as of the
date first above written. 
  

			
	CHITTENDEN CORPORATION
		
	By:	 	
	Name:	 	
	Title:	 	
	Date:	 	
		
	[Executive]	 	
		
	Date:	 	

  

 7

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