Document:

exv10w39

EXHIBIT 10.39

 

FORM OF STOCKHOLDER AGREEMENT

by and between

TRIDENT MICROSYSTEMS, INC.

and

NXP B.V.

Dated as of [___], 2010

 

 

STOCKHOLDER AGREEMENT

     THIS STOCKHOLDER AGREEMENT (this “Agreement”) is entered into as of [___], 2010,1
(the “Agreement Date”) by and between Trident Microsystems, Inc., a Delaware corporation (the
"Company”) and NXP B.V., a Dutch besloten venootshap (the “Investor”). Capitalized terms used but
not defined herein shall have the meanings ascribed to them in Exhibit A.

RECITALS

     WHEREAS, the Company, Trident Microsystems (Far East) Ltd. and the Investor entered into a
Share Exchange Agreement, dated as of October [___], 2009 (the “Share Exchange Agreement”), pursuant
to which (1) Trident Microsystems (Far East) Ltd. has agreed to acquire (directly or through one
(1) or more of its Subsidiaries) the outstanding equity securities of the Companies and the
Transferred Newcos (as defined in the Share Exchange Agreement) and certain assets from the
Investor, (2) the Company has agreed to issue and Trident Microsystems (Far East) Ltd. has agreed
to transfer and sell in consideration therefor, and the Investor has agreed to acquire, shares of
the Company’s common stock, $0.001 par value per share, (3) the Company has agreed to issue and
sell, and the Investor has agreed to purchase for cash, additional shares of such Common Stock, and
(4) pursuant to the transactions contemplated by clauses (2) and (3), the Company will issue an
aggregate of [                    ] (___) shares of such Common Stock (the “Common Shares”) and four (4) shares
of the Company’s Series B Preferred Stock, par value $0.001 per share (the “Series B Shares”);

     WHEREAS, the parties desire to enter into this Agreement to provide for certain arrangements
relating to the Company, the Common Shares and the Series B Shares; and

     WHEREAS, it is a condition to the Closing (as defined in the Share Exchange Agreement) that,
among other things, this Agreement has been executed and delivered and that the parties have
complied with their obligations hereunder.

     NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual promises
hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1

CORPORATE GOVERNANCE AND INFORMATION RIGHTS

     Section 1.1 Board and Committee Representation.

          (a) Board Composition.

               (i) Immediately following the Closing, the Board shall consist of nine (9) Directors, and, for
so long as the Persons who Own the Series B Shares (the “Series B

 

			
	1	 	To be dated as of Closing.

 

Holders”) shall be entitled to nominate and elect at least one (1) Director pursuant to the
Certificate of Designation, the Board shall consist of nine (9) Directors. The Board shall at all
times consist of at least a majority of Directors who are Independent Directors.

               (ii) Pursuant to and on the terms and conditions set forth in the Certificate of Designation,
the Series B Holders (by majority vote of the Series B Shares) shall initially be entitled to
nominate and elect up to four (4) Directors (each, a “Series B Director”). The number of Series B
Directors shall be reduced from time to time as provided in the Certificate of Designations. One
(1) Director (the “Ninth Director”) shall be mutually agreed to between the Company Nominated
Directors (as defined below) and the Series B Directors, recommended by the Nominating and
Corporate Governance Committee, nominated by the Board and submitted to the Company’s stockholders
for election in accordance with the Company’s Certificate of Incorporation and Bylaws. The Ninth
Director shall be the Company’s Chief Executive Officer unless all other Directors otherwise agree,
in which case the Ninth Director shall be a Person independent of each of the Company, the
Investor, each Series B Holder, each other stockholder of the Company owning five percent (5%) or
more of the outstanding Voting Stock of the Company and each Affiliate of any of the foregoing.
The remaining Directors (the “Company Nominated Directors” and together with the Ninth Director,
the “At-Large Directors”) shall be recommended by the Nominating and Corporate Governance
Committee, nominated by the Board and from time to time shall be submitted to the Company’s
stockholders for election in accordance with the Company’s Certificate of Incorporation and Bylaws.

               (iii) Immediately following the Closing, the Series B Holders (by majority vote of the Series
B Shares) shall be entitled to designate a total of four (4) Series B Directors, one (1) of whom
shall be a member of the class of Directors whose term expires at the first annual meeting of the
Company’s stockholders following the Closing, one (1) of whom shall be a member of the class of
Directors whose term expires at the second annual meeting of the Company’s stockholders following
the Closing, and two (2) of whom shall be members of the class of Directors whose term expires at
the third annual meeting of the Company’s stockholders following the Closing. Immediately
following the Closing, the Board shall have four (4) Company Nominated Directors, one (1) of whom
shall be a member of the class of Directors whose term expires at the first annual meeting of the
Company’s stockholders following the Closing, two (2) of whom shall be members of the class of
Directors whose term expires at the second annual meeting of the Company’s stockholders following
the Closing, and one (1) of whom shall be a member of the class of Directors whose term expires at
the third annual meeting of the Company’s stockholders following the Closing. Immediately
following the Closing, the Ninth Director shall be the Company’s CEO, and shall be elected to the
class of Directors whose term expires at the first annual meeting of the Company’s stockholders
following the Closing.

          (b) Notifications Regarding Directors.

               (i) The Series B Holders will notify the Company in writing promptly, and in any event within
five (5) Business Days, of any action by the Series B Holders or any of their Affiliates (other
than the Company) that results in a reduction in the number of shares of Common Stock that are
Beneficially Owned by the Series B Holders representing, individually

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or together with all such reductions since the date of the filing of the Certificate of
Designation with the Secretary of State of the State of Delaware or the date of any previous such
notice, as applicable, one percent (1%) or more of the outstanding Common Stock as of the date of
such filing or such previous notice, which notice will set forth the number of shares of Common
Stock Beneficially Owned by the Series B Holders immediately following the occurrence of such
reduction; provided, that for purposes of this provision, in determining the shares of Common Stock
outstanding the Series B Holders may rely upon the Company’s most recent periodic report filed with
the SEC, or any update thereof, or any notice provided by the Company pursuant to Section
1.1(b)(iii) below. In the event that the number of Directors that the Series B Holders are
entitled to nominate and elect to the Board is reduced pursuant to Section 4(a) of the Certificate
of Designation, the Series B Holders shall promptly cause one (1) or more of the Series B Directors
to immediately resign, such that the number of remaining Series B Directors serving on the Board
shall equal the number of Directors that the Series B Holders are then entitled to elect to the
Board pursuant to such Section 4(a) of the Certificate of Designation. In the event that any such
Series B Director is unwilling to resign, the Series B Holders will take all such actions as are
necessary to cause the removal of such Series B Director. If any such Series B Director shall not
have resigned or been removed within thirty (30) days after the date on which such resignation was
required, the At-Large Directors, by majority vote, may remove the Series B Director selected by
the Series B Holders for removal, or if no such Series B Director has been so selected by the
Series B Holders within ten (10) Business Days of a request from the Company, the At-Large
Directors, by majority vote, may remove one (1) Series B Director selected by them. Any vacancies
created as a result of a reduction in the number of Series B Directors that the Series B Holders
are entitled to elect pursuant to Section 4(a) of the Certificate of Designation shall be filled by
nominees (A) who satisfy the requirements of Section 1.1(c), and (B) are recommended by the
Nominating and Corporate Governance Committee and approved by the Board. The Director appointed to
fill such vacancy shall stand for re-election at the next annual meeting of the Company’s
stockholders and shall, if elected, serve for the remaining term of the Series B Director that such
Director replaced.

               (ii) The Series B Holders shall notify the Company in writing at least ten (10) days in
advance of the anticipated date of the mailing of the Company’s proxy statement in connection with
its annual meeting of stockholders (as advised by the Company in writing to the Series B Holders
not less than twenty (20) nor more than sixty (60) days prior to such anticipated mailing date) of
the nominees to be elected as Series B Directors in the class of Directors to be elected at such
annual meeting. The Series B Holders shall, to the extent practicable, notify the Company in
writing a reasonable time in advance of any other nomination of any person to serve as Series B
Director, including for the purpose of electing or appointing a Series B Director to fill a vacancy
that the Series B Holders are entitled to fill, together, in each case, with all information
concerning such nominee that may be reasonably requested by the Company, or that may be required
for the Company to comply with its reporting obligations under the Exchange Act or Exchange listing
requirements; provided that in the absence of such notice, the Series B Holders shall be deemed to
have nominated and elected the person(s) then serving as Series B Director(s).

               (iii) The Company shall notify the Series B Holders promptly, and in any event within five (5)
Business Days, of any issuance of Common Stock representing, individually or together with all
issuances of Common Stock since the date of the filing of the

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Certificate of Designation with the Secretary of State of the State of Delaware or the date of
any previous such notice, as applicable, one percent (1%) or more of the outstanding Common Stock
as of the date of such filing or such previous notice together with the aggregate number of shares
of Common Stock outstanding following such issuance.

          (c) Limitations on Directors. Each Director shall, at all times during which such
Person serves as a Director, not have been during the last five (5) years convicted in a criminal
proceeding (excluding traffic violations or other misdemeanors not involving moral turpitude or
deliberate dishonesty) or a party to a civil proceeding brought by a Governmental Authority in
which such Director has been finally determined to have committed a violation of federal, state or
foreign law (excluding traffic violations or similar misdemeanors not involving moral turpitude or
deliberate dishonesty). The Series B Holders shall not nominate or elect any such Series B
Director who does not meet the requirements set forth in this Section 1.1(c) and shall cause any
such Series B Director who fails to meet the requirements set forth above to resign promptly. If
any such Series B Director is unwilling to resign, the Series B Holders will take such actions as
are necessary to cause the removal of the Series B Director as promptly as reasonably practicable.

          (d) Limitations on Series B Directors. At least two (2) of the Series B Directors
shall have substantial operating or industry experience, and no more than two (2) Series B
Directors may be Persons who are not Independent Directors. The Series B Holders shall consult
with the Nominating and Corporate Governance Committee (which may delegate such consultation to the
Committee Chairperson and/or the Chief Executive Officer of the Company) regarding the names,
backgrounds and qualifications of the persons to be nominated as Series B Directors after
considering the Company’s Corporate Governance Guidelines (as made publicly available from time to
time). However, the Nominating and Corporate Governance Committee shall not have any right nor
shall it have any duty to approve or disapprove any person meeting the requirements of
Section 1.1(c) selected as a Series B Director by the Series B Holders.

          (e) Limitations on Company Nominated Directors. No more than one (1) Company
Nominated Director may be a Person who is not an Independent Director. At least two (2) of the
Company Nominated Directors shall have substantial operating or industry experience.

     Section 1.2 Board Committees.

          (a) Subject to the requirements of applicable law and Committee Qualification Requirements
applicable to all Directors, for as long as there is at least one (1) Series B Director on the
Board, the Company shall maintain an Audit Committee, a Compensation Committee, a Nominating and
Corporate Governance Committee and a Strategy Committee. Subject to the terms set forth in this
Section 1.2, the power and authority of each such committee shall be as set forth in the charter of
such committee, and (except as otherwise provided in the charter of such committee or as required
by applicable law or any applicable Exchange rules) the exercise of such power and authority will
be at all times subject to the power and authority of the entire Board.

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               (i) Audit Committee. The Audit Committee shall be comprised of
three (3) Directors, each of whom shall be an Independent Director and satisfy the
requirements of applicable law and any applicable Exchange rules. One (1) member of the Audit
Committee shall be a Series B Director who is not an employee of the Investor or any of its
Subsidiaries and two (2) members of the Audit Committee shall be At-Large Directors.

               (ii) Compensation Committee. The Compensation Committee shall be comprised of three
(3) Directors, each of whom shall be an Independent Director and satisfy the requirements of
applicable law and any applicable Exchange rules. One (1) member of the Compensation Committee
shall be a Series B Director who is not an employee of the Investor or any of its Subsidiaries and
two (2) members of the Compensation Committee shall be At-Large Directors.

               (iii) Nominating and Corporate Governance Committee. The Nominating and Corporate
Governance Committee shall be comprised of three (3) Directors, each of whom shall be an
Independent Director and satisfy the requirements of applicable law and any applicable Exchange
rules. One (1) member of the Nominating and Corporate Governance Committee shall be a Series B
Director and two (2) members of the Nominating and Corporate Governance Committee shall be At-Large
Directors.

               (iv) Other Committees. With respect to each other committee or subcommittee of the
Board, the Board shall appoint to each such committee or subcommittee a number of Series B
Directors as is proportional to the representation of the Series B Directors on the Board as a
whole, rounded to the nearest whole number.

          (b) Any Directors appointed to a committee or subcommittee of the Board who are not Series B
Directors shall be recommended by the Nominating and Corporate Governance Committee and appointed
by the Board. If the members of the Nominating and Corporate Governance Committee are unable to
agree on any committee or subcommittee assignment, the Chairman of the Board shall act as a
temporary member of the Nominating and Corporate Governance Committee for purposes of casting the
deciding vote on such matter. The Series B Directors shall be entitled to designate the Series B
Director(s) to serve on each committee or subcommittee of the Board, provided that such Series B
Directors meet the applicable requirements set forth in Section 1.2(a), and the Board shall take
all actions necessary to appoint such Series B Directors to such committees or subcommittees.

          (c) Except for (i) routine commercial transactions entered into on an arms’ length basis in
the ordinary course of business, (ii) contracts or arrangement involving expenditures, revenues or
the incurrence of liabilities not in excess of $[ ], and (iii) the transactions contemplated by the
Share Exchange Agreement, the entry into, termination or variation of any contract or arrangement
between the Company and any Related Party shall be approved by the affirmative vote of a majority
of the disinterested Directors. For purpose of this Section 1.2(c), a “Related Party” includes the
Directors and officers of the Company, the spouses or children of such Directors and officers, the
Investor, any of the Series B Holders, any other stockholder that (together with its Affiliates)
Beneficially Owns more than ten percent (10%) of the outstanding Voting Stock of the Company, or
any Affiliate of any of the foregoing.

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          (d) Notwithstanding the foregoing, any Board committee may hold executive
sessions at which one (1) or more Directors is not permitted to be present to the extent the
committee determines in good faith that such exclusion is appropriate.

     Section 1.3 Voting.

          (a) Change of Control Transactions. Subject to compliance with Section 1.3(c),
Section 1.3(d) and Section 3.2, the Investor and its Affiliates may vote any Voting Stock
Beneficially Owned by any of them in their sole discretion on any Change of Control transaction
submitted to the stockholders of the Company for approval, provided that on and after the fourth
anniversary of the date of this Agreement, the Investor may, notwithstanding Section 1.3(c) or
Section 1.3(d) hereof, but subject to compliance with Section 3.2 hereof, vote in its discretion on
any proposal to replace Directors that is made by an unaffiliated third party in connection with a
Change of Control transaction proposed by such unaffiliated third party.

          (b) Amendments to Certificate of Incorporation or Bylaws. The Investor and its
Affiliates may vote the Voting Stock Beneficially Owned by any of them on any proposal related to
any amendment or restatement of the Certificate of Incorporation or Bylaws of the Company which is
in any way adverse to the Investor in their sole discretion.

          (c) Stockholders Agreement. The Investor shall, and shall cause its Permitted
Transferees to and shall use commercially reasonable efforts to cause its Affiliates to, vote the
Voting Stock Beneficially Owned by any them in favor of each matter required to effectuate any
provision of this Agreement and against any matter the approval of which would be inconsistent with
any provision of this Agreement.

          (d) Directors. With respect to the election, removal, replacement and classification
of Directors (other than Series B Directors) the Investor and its Affiliates shall either (i) vote
all of the Voting Stock Beneficially Owned by any of them in accordance with the recommendation of
the Board approved by a majority of the At-Large Directors or (ii) vote all of the Voting Stock
Beneficially Owned by any of them in the same proportion (for, against, abstain or withheld, or as
otherwise indicated) as the votes cast by all other holders of Voting Stock on all matters to be
voted on by holders of Voting Stock

          (e) Other Matters. Except as provided in Sections 1.3(a), 1.3(b), 1.3(c) and 1.3(d),
for so long as the Investor and its Affiliates in the aggregate Beneficially Own in excess of
thirty percent (30%) of the outstanding Voting Stock of the Company (the “Voting Limit”), the
Investor shall, and shall cause its Affiliates to, either (i) vote all of the Voting Stock
Beneficially Owned by any of them in excess of the Voting Limit in accordance with the
recommendation of the Board approved by a majority of the At-Large Directors or (ii) vote all of
the Voting Stock Beneficially Owned by any of them in excess of the Voting Limit in the same
proportion (for, against, abstain or withheld, or as otherwise indicated) as the votes cast by all
other holders of Voting Stock on all matters to be voted on by holders of Voting Stock. Subject to
the other provisions of this Agreement, the Investor and its Affiliates may vote the Voting Stock
Beneficially Owned up to and including (but not in excess of) the Voting Limit on any proposal in
its sole discretion.

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          (f) Quorum. At every meeting (or action by written consent, if applicable) of
the stockholders of the Company called, and at every postponement or adjournment thereof, the
Investor shall, and shall cause its Affiliates to, cause any and all shares of Common Stock
Beneficially Owned by it or them and entitled to be voted thereat to be present in person or
represented by proxy at the meeting so that all such shares shall be counted as present for
purposes of determining the presence of a quorum at such meeting.

     Section 1.4 Information Rights.

          (a) Subject to Section 1.5, the Company will deliver to the Investor the following
information:

               (i) with respect to each fiscal year: (A) promptly after it has been made available (but in no
event later than fifteen (15) Business Days of the end of each fiscal year) the unaudited
consolidated financial statements of the Company and its Subsidiaries, (B) promptly after it has
been made available (but in no event later than twenty-five (25) Business Days of the end of each
fiscal year) the audited consolidated financial statements of the Company and its Subsidiaries,
audited in accordance with U.S. GAAS, and (C) promptly after it has been made available (but in no
event later than seventy (70) Business Days of the end of each fiscal year) the international
financial reporting standards (“IFRS”) consolidated financial statements of the Company and its
Subsidiaries; provided, that if the Company properly extends the date for filing of any such
statements specified in subparagraph (B) or (C) above with the SEC (i.e., by means of a filing on
Form 12b-25), then the date set forth above for delivery to the Investor shall be extended for a
corresponding period;

               (ii) with respect to each quarterly period, promptly after it has been made available,
quarterly unaudited U.S. GAAP consolidated financial statements of the Company and its
Subsidiaries, including (i) a detailed profit and loss statement, balance sheet and cash flow
statement (which may be unreviewed and subject to further adjustment) to be provided within ten
(10) Business Days of the end of each quarter, (ii) such information as may reasonably be required
for the Investor to prepare an update of the IFRS reconciliation for net income and shareholders
equity, (iii) a management discussion & analysis, including an analysis of revenue, (iv) a rolling
forecast in relation to the current quarter as presented to the Board of Directors and (vi)
financial information on related party matters, which information shall, to the extent possible, be
directly extracted from the Company ‘s information technology systems;

               (iii) with respect to each monthly period, promptly after it has been made available (but in
no event later than ten (10) Business Days of the end of each month) information including net
income and net assets and equity (which may be unreviewed and subject to adjustment) (provided,
that if such information is not delivered earlier, estimates of such information shall be made
available within seven (7) Business Days of the end of each month);

               (iv) draft business plans for the Company and its Subsidiaries for the subsequent three (3)
year period no later than two (2) Business Days after approval thereof by the Board, in the form
presented to the Board (but subject to Section 1.4(b));

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               (v) copies of all reports, certificates, and other information delivered
to the Company’s lenders or creditors in respect of any material indebtedness of the Company;
and

               (vi) any other financial information, reports and workpapers in the possession or under the
control of the Company or any of its Subsidiaries that the Investor reasonably requires to comply
with reporting, disclosure, filing or other requirements imposed on the Investor or any of its
Subsidiaries (A) by a Governmental Authority having jurisdiction over the Investor or any of its
Subsidiaries, including under applicable securities or tax laws, including the Sarbanes-Oxley Act
of 2002, as amended, (B) by IFRS adopted by the International Accounting Standards Board or any
successor entity, (C) by the covenants in financing arrangements to which the Investor is a party,
and (D) the rules and regulations thereunder, or applicable rules of any self-regulatory
organization.

          (b) The Investor shall be entitled to confer with each Series B Director regarding the
business, affairs, financial condition, results of operations and prospects of the Company and may
discuss any and all information (other than confidential compensation information) provided to the
Investor or any such Series B Director, subject to Section 1.5 below; provided, that if the Board
determines in good faith that any Company information must be held in confidence in order to (i)
preserve attorney-client privilege, (ii) comply with any applicable confidentiality or
non-disclosure agreement, or (iii) prevent a dissemination of competitively sensitive information
regarding (A) products, services or other activities of the Company with respect to which the
Investor or its Subsidiaries competes with the Company or (B) proposed products, services or other
activities of the Company that the Board reasonably determines that the Company may develop,
acquire or pursue that would be competitive with the current products, services or other activities
of the Investor or any of its Subsidiaries or (C) any other matter as to which the Board has
determined in good faith that the Company and the Investor have a material conflict of interest
based on a reasonable expectation that disclosure of such information may be harmful to the
Company, then the Series B Directors shall hold such information in confidence and not discuss such
information with the Investor except to the degree, if any, approved by the Board.

     Section 1.5 Confidentiality. (a) The Investor shall keep confidential (x) all proprietary
and non-public information regarding the Company and its Subsidiaries received pursuant to Sections
1.3 or 1.4 or otherwise, (y) all “Information” (as defined in the Confidentiality Agreement)
provided to the Investor or its representatives under the Confidentiality Agreement prior to the
date hereof (notwithstanding the termination of the Confidentiality Agreement), and (z) all
non-public information furnished or disclosed to or otherwise acquired by any Series B Director in
such Person’s capacity as a Director (clauses (x), (y) and (z) collectively, “Confidential
Information”), and in each case shall not disclose or reveal any such information to any Person
without the prior written consent of the Company, other than those of its employees, officers,
directors, First Tier Affiliates, attorneys, accountants and financial advisors (“Permitted
Representatives”) who need to know such information for the purpose of evaluating, monitoring or
taking any other action with respect to the investment by the Investor in the Common Shares or the
Series B Share and shall cause those Permitted Representatives to observe the terms of this Section
1.5 and agree for the benefit of the Company to do so (and any violation or breach of the terms of
this Section 1.5 by any Permitted

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Representative shall be deemed a breach hereof by the Investor).
Notwithstanding the foregoing,
no officer, employee or director of any Entity that is a Company Competitor shall be a
Permitted Representative, and no Confidential Information shall be furnished or disclosed to any
such Company Competitor.

          (b) The Investor shall not, and shall cause its First Tier Affiliates and Permitted
Representatives not to, use such proprietary and non-public information for any purpose other than
in connection with evaluating, monitoring or taking any other action with respect to the investment
by the Investor in the Common Shares or the Series B Share; provided, that nothing herein shall
prevent the Investor or any of its Permitted Representatives from disclosing any such information
that (1) is or becomes generally available to the public other than as a result of a disclosure by
the Investor or its Permitted Representatives in violation of this Section 1.5 or any other
confidentiality agreement between the Company and the Investor or any of its Permitted
Representatives or any other legal duty, fiduciary duty, or other duty of trust and confidence of
the Investor, any of its Permitted Representatives, or any Series B Director, (2) was within the
Investor’s or its Permitted Representative’s possession on a non-confidential basis prior to being
furnished with such information (provided that the source of such information was not known by the
Investor at the time of such disclosure by the Investor or any of its Permitted Representatives to
be bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation
of confidentiality to or other duty of trust and confidence to, the Company with respect to such
information), (3) was independently developed by Investor without use of any information furnished
to Investor, any of its Permitted Representatives or any Series B Director, or (4) becomes
available to the Investor or its Permitted Representative on a non-confidential basis from a source
other than the Company (provided that such source is not known by the Investor at the time of such
disclosure by the Investor or any of its Permitted Representatives to be bound by a confidentiality
agreement with, or other contractual, legal or fiduciary obligation of confidentiality to or other
duty of trust and confidence to, the Company with respect to such information).

          (c) If any Confidential Information is required to be disclosed by applicable law or judicial
order, then the Investor will notify the Company in writing and will cooperate with the Company if
the Company elects to seek a protective order or other appropriate remedy with respect to such
required disclosure. If no such protective order is obtained, and if Investor or any of its
Permitted Representatives has been advised by legal counsel in writing that it is legally compelled
to disclose any Confidential Information, then the Investor or such Permitted Representative may
disclose such Confidential Information, but will furnish only that portion of the Confidential
Information which Investor or is Permitted Representatives is advised by counsel is legally
required and will exercise its reasonable efforts to obtain reliable assurance that confidential
treatment will be accorded such Confidential Information.

          (d) Upon the redemption of all of the Series B Shares and the termination of the Investor’s
right to information under Section 1.4, the Investor shall return to the Company all written
Confidential Information that has been provided to the Investor by the Company; provided, that in
lieu of being returned to the Company such Confidential Information may be destroyed by Investor,
in which case Investor shall provide the Company with a written certification that such written
Confidential Information has been destroyed.

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     Section 1.6 Major Decisions. The approval of any of the following matters shall
require an affirmative vote of at least two-thirds (2/3) of the Directors present (in person
or by telephone or video conference) and voting for or against approval of any such matter at any
meeting at of which proper notice is provided to the Board in accordance with the Company’s Bylaws
(or is waived by all Directors) and such matter is considered:

               (i) any amendment to the Company’s Certificate of Incorporation, Bylaws or any other
organizational documents of the Company;

               (ii) the consummation of any merger, business combination, consolidation, corporate
reorganization or any transaction constituting a Change of Control, by the Company with or into any
Entity;

               (iii) any sale, transfer or other disposition (including by way of issuance of Equity
Securities of a Subsidiary) of assets of the Company and its Subsidiaries in an amount in excess of
$50,000,000;

               (iv) any acquisition, capital expenditure, investment (or any commitment in respect thereof)
by the Company or any of its Subsidiaries (or series of related acquisitions, expenditures,
investments or commitments) of the assets or securities of any other Entity in an amount in excess
of $50,000,000;

               (v) any Liquidation Proceeding;

               (vi) the removal or termination of employment of the Company’s Chief Executive Officer or the
selection of a replacement of the Chief Executive Officer;

               (vii) any transactions with the Investor or any of its Affiliates that involve more than
$1,000,000 or that are otherwise material to the Company;

               (viii) any authorization or approval of any amendment to or waiver under this Agreement;

               (ix) any payment or declaration of dividends on the Company’s capital stock, special or
otherwise;

               (x) any repurchase by the Company of any of its Equity Securities in an amount exceeding
$5,000,000 in any 12-month period;

               (xi) any equity or debt financing in an amount in excess of $50,000,000; and

               (xii) any other matters requiring stockholder approval under the listing rules of the NASDAQ
Stock Market or any other Exchange on which the Common Stock is listed.

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ARTICLE 2

TRANSFERS

     Section 2.1 Transfer Restrictions.

          (a) General Restriction. The Investor shall not Transfer any of the Series B Shares
or any Common Shares or other Equity Securities acquired pursuant to Section 3.1 hereof other than
as expressly permitted by, and in compliance with, the other provisions of this Section 2.1, and
any attempted Transfer in violation of this Agreement shall be of no effect and null and void, and
shall not be recorded on the stock transfer books of the Company, regardless of whether the
purported Transferee has any actual or constructive knowledge of the Transfer restrictions set
forth in this Agreement.

          (b) Two Year Lock-up Restriction.

               (i) Prior to the second anniversary of the Closing (the “Lock-up Period”), the Investor shall
not Transfer any Common Shares or other Equity Securities acquired pursuant to Section 3.1 hereof,
except that the Investor may Transfer any or all of its Common Shares or Equity Securities acquired
pursuant to Section 3.1 hereof (1) pursuant to any Approved Transaction in which stockholders of
the Company are offered, permitted or required to participate as holders of any of the Company’s
Equity Securities; (2) as a pledge of its assets pursuant to a bona fide financing transaction; or
(3) to one (1) or more First Tier Affiliates of the Investor; provided that in the case of clause
(3), any Transferee of Common Shares or other Equity Securities acquired pursuant to Section 3.1
hereof (x) agrees to be bound hereunder as an Investor, and (y) executes a counterpart to this
Agreement agreeing to the terms of this Agreement (including, without limitation, this Section 2.1
and Section 3.2) (the Transfers referred to in clauses (1) through (3) collectively referred to as
the “Exempt Transfers”). Upon a Transfer contemplated by clause (3) above, any Transferee of
Common Stock shall be deemed an Investor hereunder and shall be entitled to the rights (including,
but not limited to the registration rights pursuant to Article 4), and subject to the obligations
and restrictions (including, without limitation, the provisions of this Section 2.1 and Section
3.2), contained herein. As used herein, “Approved Transaction” means any tender offer, exchange
offer, merger, sale of the Company, reclassification, reorganization, recapitalization or other
transaction that has been approved or recommended by a majority of the At-Large Directors who are
Independent Directors (and which at the time of Transfer continues to be approved or recommended by
a majority of the At-Large Directors who are Independent Directors).

               (ii) Notwithstanding clause (i) above, the Investor may Transfer Common Shares or other Equity
Securities acquired pursuant to Section 3.1 hereof to one or more Persons that are Eligible
Transferees in an aggregate amount not to exceed 15% of the outstanding Voting Stock if and to the
extent that the Investor determines (after consultation with its independent registered public
accounting firm) that the Investor would otherwise be required to consolidate the Company’s
financial results in the Investor’s consolidated financial statements prepared under IFRS or US
generally accepted accounting principles. In connection with any such Transfer, (x) the Company
shall not have any obligation to register such transferred shares under the Securities Act or any
other applicable law in order to permit such Transfer, (y) any such Transfer must comply with all
of the provisions of Section 2.1(c), and (z) as a condition to

11

 

any such Transfer the Transferee
must (1) agree in writing to be bound by and comply with this
Section 2.1 and (2) agree in writing to be bound by and comply with the provisions of Section
1.3 and Section 3.2 hereof until the end of the Lock-up Period (with the reference to “Standstill
Limit” to be replaced by a reference to the percentage of the outstanding Voting Stock subject to
such Transfer). Any Transferee under this Section 2.1(b)(ii) shall not be considered an Investor
under this Agreement and shall have no rights under this Agreement (including, without limitation,
under Sections 1.4, 3.1 and 4.1 hereof) other than the right to participate in Piggyback
Registrations (if any) under Section 4.2. Upon any Transfer pursuant to this Section 2.1(b)(ii),
the Standstill Limit shall immediately be permanently reduced by a number of shares of Common Stock
equal to the number of shares of Common Stock so Transferred.

          (c) Ongoing Restrictions. After the Lock-up Period, unless otherwise approved by a
majority of the At-Large Directors (which approval shall not be unreasonably withheld or delayed),
the Investor shall not, and shall not permit any of its Affiliates to, Transfer any Common Stock or
agree to Transfer, directly or indirectly, any Common Stock, other than any Transfer:

               (i) that would have been an Exempt Transfer permitted during the Lock-up Period under clauses
(1), (2) or (3) of Section 2.1(b) (which, in the case of clause (3) of Section 2.1(b), the
Transferee shall be deemed an Investor hereunder and shall be entitled to the rights (including,
but not limited to the registration rights pursuant to Article 4), and subject to the obligations
and restrictions (including, without limitation, any applicable provisions of this Section 2.1 and
Section 3.2), contained herein);

               (ii) pursuant to and in compliance with the restrictions of Rule 144 under the Securities Act
applicable to sales by affiliates of an issuer;

               (iii) pursuant to a firm commitment underwritten distribution to the public, registered under
the Securities Act;

               (iv) pursuant to a distribution registered under the Securities Act (other than as provided in
clause (iii) above), in an amount not exceeding, on any trading day, 25% of the ADTV as in effect
on such trading day; or

               (v) to any Person that after consummation of such Transfer would Beneficially Own (A) in the
case of an Eligible Transferee, less than fifteen percent (15%), and (B) in the case of an
Ineligible Transferee, less than five percent (5%), of the outstanding Voting Stock of the Company;

provided, that, in the case of a Transfer pursuant to clause (ii) or clause (iv), the Investor
shall not knowingly Transfer any shares of Common Stock to any Person that, after consummation of
such Transfer, would Beneficially Own (I) in the case of an Eligible Transferee, more than fifteen
percent (15%), and (II) in the case of an Ineligible Transferee, more than five percent (5%), of
the outstanding Voting Stock of the Company; and provided further, that in the case of a Transfer
pursuant to clause (iii) that is effected through a firm commitment underwriting, the Investor
shall instruct the underwriters to use their reasonable best efforts to (A) effect as wide a
distribution as practicable of the Common Stock Transferred, consistent with best execution

12

 

standards and (B) not knowingly sell Common Stock to any Person that, after consummation of
such Transfer, would Beneficially Own (I) in the case of an Eligible Transferee, more than fifteen
percent (15%), and (II) in the case of an Ineligible Transferee, more than five percent (5%), of
the outstanding Voting Stock of the Company.

     Any Transferee acquiring Common Stock pursuant to clauses (ii), (iii), (iv) or (v) of this
Section 2.1(c) (other than the Investor, an Affiliate of the Investor or any member of a 13D Group
of which the Investor or any of its Affiliates are members) shall take such Common Stock free of
the obligations of the Investor under this Agreement (including, without limitation, this Section
2.1 and Section 3.2) and shall have no rights as an Investor or Permitted Transferee under this
Agreement (including, without limitation, any rights under Article 1, Section 3.1 or Article 4).

          (d) Restrictions on the Series B Share. Neither the Investor nor any other Series B
Holder may Transfer any of the Series B Shares to any other Person, except that the Investor shall
have the right to Transfer Series B Shares to any Permitted Transferee that acquires twenty percent
(20%) or more of the Investor Registrable Securities in compliance with the provisions of this
Section 2.1 in an aggregate amount representing. Upon such a Transfer, such Transferee shall be
deemed an Investor and a Series B Holder hereunder and shall be entitled to the rights, and subject
to the obligations and restrictions, contained herein.

     Section 2.2 Legends; Securities Act Compliance.

          (a) Each certificate representing Common Shares, Series B Shares or other Equity Securities
acquired by the Investor or any of its Affiliates pursuant to Section 3.1 will bear a legend
conspicuously thereon to the following effect:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
OTHERWISE TRANSFERRED UNLESS REGISTERED OR EXEMPT FROM REGISTRATION
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS
OF A STOCKHOLDER AGREEMENT AND MAY NOT BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH SUCH
AGREEMENT.”

          (b) In addition to the restrictions set forth in Section 2.1, the Investor shall not offer,
sell or legally transfer any Common Shares or Equity Securities acquired pursuant to Section 3.1
hereof except pursuant to: (i) an effective Registration Statement under the Securities Act; (ii)
an opinion of legal counsel reasonably acceptable to the Company that such Transfer is exempt from
the registration requirements of Section 5 of the Securities Act; (iii) pursuant to Rule 144 under
the Securities Act; or (iv) a “no action” letter from the staff of the SEC addressed

13

 

to the
Investor or a Permitted Transferee to the effect that the Transfer without registration would
not result in a recommendation by the staff to the SEC that action be taken with respect
thereto.

          (c) In the event that any Common Shares Beneficially Owned by the Investor or any of its
Affiliates is Transferred in a Public Offering as provided in Section 2.1(c)(iii) or 2.1(c)(iv),
the Company shall promptly, upon request, but in any event not later than is necessary in order to
consummate the sale of such securities pursuant to such Public Offering, remove the legend set
forth above in connection with such Transfer. In the event that any Common Shares Beneficially
Owned by the Investor or any of its Affiliates is Transferred pursuant to Rule 144 under the
Securities Act in compliance with Section 2.1(c)(ii), the Company shall upon request, upon receipt
of documentation reasonably required by the Company to confirm such Investor’s eligibility to sell
such Common Shares pursuant to Rule 144 under the Securities Act, promptly but in any event not
later than is necessary in order to consummate the sale of such securities pursuant to Rule 144
under the Securities Act (subject to receipt of such documentation a reasonable period of time
prior to such sale), remove the second sentence of the legend set forth above in connection with
such Transfer.

          (d) In the event that any Common Shares are transferable without volume or manner of sale
restrictions pursuant to Rule 144 under the Securities Act and the terms of this Article 2 no
longer restrict the Transfer of such Common Shares by the holder thereof, the Company shall
promptly upon request remove the legends set forth above from the certificates representing such
Common Shares.

          (e) Upon the termination of the restrictions set forth in Section 2.1, the Company shall
promptly, upon request, deliver a replacement certificate not containing the second sentence of the
legend set forth above.

ARTICLE 3

CERTAIN COVENANTS

     Section 3.1 Right to Maintain. During the Right to Maintain Period:

          (a) The Company shall provide the Investor the opportunity to purchase in any Offering up to
its Pro Rata Share; provided, however, in no event shall the Investor be entitled to purchase an
amount of Equity Securities in any such Offering that would cause Section 3.2 to be violated.

          (b) No later than fifteen (15) Business Days prior to the anticipated consummation of an
Offering, the Company shall send a written notice (the “Offering Notice”) to the Investor,
indicating the material terms and conditions of the proposed Offering, including, without
limitation, (i) the number and type of Equity Securities expected to be offered or sold and the
material terms of such Equity Securities, (ii) the expected price at which it proposes to offer or
sell such Equity Securities, or the expected formula for determining such price, (iii) the expected
timing of the Offering, and (iv) the name, telephone and facsimile number or e-mail address of the
Person at the Company to whom the Investor should deliver a Response Notice (as defined below).
If, prior to the consummation of the Offering, the terms and conditions of the

14

 

proposed Offering
change, with the result that the price will be less than the minimum price set
forth in the Offering Notice or the other principal terms and conditions will be materially
more favorable to potential subscribers in the Offering than those set forth in the Offering
Notice, it will be necessary for a separate Offering Notice to be furnished, and the terms and
provisions of this Section 3.1 separately complied with, in order to consummate the Offering
pursuant to this Section 3.1.

          (c) The Investor shall have the right, by providing written notice to the Company no later
than five (5) Business Days prior to the anticipated consummation of an Offering and indicating the
name, telephone number, facsimile number or e-mail address of the Person or Persons that the
underwriter(s) of the Offering should call to coordinate with respect to any sales to the Investor,
to either (i) purchase Equity Securities up to its Pro Rata Share in the Offering upon the terms
and conditions specified in the Offering Notice and upon the same terms and conditions applicable
to all other participants in such proposed Offering, or (ii) waive its right to so purchase Equity
Securities up to its Pro Rata Share in the Offering (in either case, a “Response Notice”). If the
Investor or a Permitted Transferee shall fail to provide the Company with a Response Notice no
later than five (5) Business Days prior to the date of the expected Offering as set forth in the
Offering Notice, then the Investor shall not be entitled to purchase Equity Securities in the
Offering. In any event, it shall be a condition to the Investor’s or a Permitted Transferee’s
opportunity to purchase Equity Securities in an Offering that it comply with the reasonable
requests of the underwriter(s) necessary for it to purchase shares in the Offering (e.g.,
establishing an account with an underwriter in the Offering). The election by the Investor not to
exercise its rights to purchase up to its Pro Rata Share in, or failure to deliver a Response
Notice with respect to, any Offering shall not affect its rights as to future Offerings pursuant to
this Section 3.1. In the event that the Company has not sold the Equity Securities within sixty
(60) calendar days after the date of the expected Offering as set forth in the Offering Notice,
then the Company shall not thereafter issue or sell the Equity Securities without again first
complying with the provisions of this Section 3.1 and offering the Investor the right to purchase
its Pro Rata Share thereof.

          (d) For the avoidance of doubt, under no circumstances shall any pledgee of any Common Stock
or any Transferee from such pledgee be deemed an Investor for purposes of this Section 3.1, and no
such pledgee or Transferee shall have any rights under this Section 3.1.

     Section 3.2 Standstill.

          (a) For a period of six (6) years from the Closing (the “Standstill Period”), the Investor
shall not, and the Investor shall ensure that none of its Affiliates shall, nor shall any of the
foregoing Persons act in concert with any other Person to, directly or indirectly, without the
prior consent of a majority of the At-Large Directors who are Independent Directors:

               (i) acquire or agree to acquire (whether by purchase, tender or exchange offer, through
acquisition of control of another Person, by joining a 13D Group, through the use of a derivative
instrument or voting agreement, or otherwise), Beneficial Ownership of any Equity Securities, or
any Economic Right or Voting Right to or regarding any Equity Securities, or authorize or make a
tender offer, exchange offer or other offer or proposal, whether oral or written, to acquire Equity
Securities, in each case, if the effect of such

15

 

acquisition would be that the Common Stock
Beneficially Owned in the aggregate by the
Investor and its Affiliates (including, without limitation, any 13D Group of which any
Investor or any Affiliate thereof is a member), or with respect to which the Investor, its
Affiliates or any such 13D Group would have Economic Rights or Voting Rights, would exceed the
Standstill Limit (it being understood that in the event that there shall be more than one (1)
Investor, all shares Beneficially Owned and all Economic Rights and Voting Rights held by all
Investors and all other Persons that are participants in any 13D Group of which any Investor is a
member shall be aggregated, and deemed Beneficially Owned and held by each Investor, for purposes
of this Section 3.2(a)(i));

               (ii) (A) make or in any way participate in any “solicitation” of “proxies” (as such terms are
used in the rules and regulations of the SEC) with respect to any Voting Stock, or (B) seek to
advise or influence any Person with respect to the voting of any Voting Stock (other than (x) the
Investor or any Affiliate or (y) in accordance with and consistent with the recommendation of the
Board);

               (iii) deposit any Voting Stock or Series B Shares in a voting trust or, except as otherwise
provided or contemplated herein, subject any Voting Stock or Series B Shares to any arrangement or
agreement with any Person (other than between the Investor and any of its First Tier Affiliates)
with respect to the voting of such Voting Stock or Series B Shares;

               (iv) join a 13D Group (other than a group comprising solely of the Investor and its Permitted
Transferees) or other group, or otherwise act in concert with any third Person for the purpose of
acquiring, holding, voting or disposing of Voting Stock, Series B Shares or Convertible Securities;

               (v) effect or seek, offer or propose (whether publicly or otherwise) to effect any Change of
Control or any acquisition of Equity Securities in excess of the Standstill Limit;

               (vi) otherwise act, alone or in concert with others, to effect or seek, offer or propose
(whether publicly or otherwise) to effect control of the management, Board or policies of the
Company; or

               (vii) otherwise take any action that would or could reasonably be expected to compel the
Company to make a public announcement (including any disclosure required to be made in any SEC
filing under the rules and regulations of the SEC) regarding any of the matters set forth in this
Section 3.2(a).

     Notwithstanding the foregoing, the restrictions contained in this Section 3.2(a) shall not (A)
apply with respect to the election of the Series B Directors by Investor and its Permitted
Transferees in accordance with the Certificate of Designation, (B) prevent, restrict, encumber or
in any way limit the ability of any Series B Director to vote on matters, make non-public
statements to officers, employees, agents, management or other Directors or to take any action or
make any statement at any meeting of the Board or any committee or subcommittee thereof in his or
her capacity as a Director, (C) apply to or restrict any non-public discussions or other

16

 

non-public
communications between or among directors, members, officers, employees or agents of
the Investor or any First Tier Affiliate of the Investor, or (D) restrict any disclosure or
statements required to be made by any Series B Director or the Investor under applicable law.

          (b) If during the Standstill Period the Investor is entitled (as a result of dilution due to
future share issuances by the Company) to purchase shares of Common Stock (up to the Standstill
Limit) in compliance with this Section 3.2, then unless the Board otherwise approves such purchases
shall be made in full compliance with all applicable securities laws, but shall not be made by
means of any tender offer.

          (c) The restrictions set forth in Section 3.2(a) shall terminate if, at any time during the
Standstill Period, (i) the Company publicly announces its entry into a definitive agreement, the
consummation of which would result in a Change of Control, and such agreement has not been approved
by a majority of the Series B Directors, (ii) the Company shall have waived the terms of its Rights
Agreement to permit any Person (other than the Investor or any 13D Group of which the Investor is a
member) to effect a Change of Control or otherwise acquire more than fifteen percent (15%) of the
outstanding Common Stock, and such transaction has not been approved by a majority of the Series B
Directors, or (iii) any Person (other than the Investor or any Affiliate of the Investor or any 13D
Group of which the Investor or any Affiliate of the Investor is a member) shall have commenced a
bona fide public tender or exchange offer which if consummated would result in a Change of Control,
unless the Board recommends against such tender or exchange offer within ten (10) Business Days
after the commencement (as such term is defined in Rule 14d-2 under the Exchange Act) thereof and
thereafter continues to oppose such tender or exchange offer. If (x) the restrictions set forth in
Section 3.2(a) shall have terminated as provided in this Section 3.2(c), and (y) any definitive
agreement described in clause (i) above, or transaction described in clause (ii) above, or tender
or exchange offer described in clause (iii) above, as the case may be, shall have been terminated
or abandoned prior to consummation thereof, and (z) any alternative offer or proposal by Investor
in response to any such agreement, transaction, tender offer or exchange offer shall also have been
abandoned or withdrawn prior to consummation thereof, then the restrictions set forth in Section
3.2(a) shall be reinstated.

          (d) If during the Standstill Period the Board elects to commence a process intended to lead to
a proposal with respect to Change of Control of the Company (whether in response to a proposal from
a third party or otherwise), the Company will notify the Investor of the Board’s election and will
permit the Investor to participate in such process as a potential bidder, if the Investor so
elects, on the same terms and conditions as third party participants. As a condition to the
Investor’s participation in such process, the Board may require that the Investor agree in writing
with the Company that if such process results in the Board’s approval of a Change of Control
transaction with a Person other than the Investor that is a Superior Proposal as compared to any
bona fide written proposal from the Investor, then the Investor will consent to such transaction,
will raise no objection to the consummation thereof, and will tender shares of Equity Securities
Beneficially Owned by it, as applicable, upon the consummation of such transaction. In the event
that any such transaction requires the approval of the Company’s stockholders, the Investor agrees,
if the matter is brought to a vote at a stockholder meeting, that the Investor will be present, in
person or by proxy, as holders of Voting Stock, at all such meetings and be counted for determining
the presence of a quorum at such meetings and will

17

 

vote for the approval of any such transaction
approved and recommended by the Board. So long
as the Board continues to recommend such transaction, the Investor agrees to vote and to use
reasonable efforts to cause its Affiliates, as the case may be, to vote all shares of Voting Stock
Beneficially Owned by the Investor and its Affiliates in favor of such transaction and for the
approval of the terms thereof and in opposition to any and all other proposals that are intended,
or could reasonably be expected to delay, prevent, impair, interfere with, postpone or adversely
affect the ability of the Company to consummate the proposals that are approved and recommended by
the Board.

     Section 3.3 Other Share Acquisitions. Following the expiration of the Standstill Period, if
the Investor and its Affiliates desire to acquire Beneficial Ownership of Equity Securities that
would cause the aggregate Beneficial Ownership of the Investor and its Affiliates to exceed (a)
seventy percent (70%) of the number of shares of Common Stock outstanding , if prior to such
proposed acquisition the Beneficial Ownership of the Investor and its Affiliates is at least forty
percent (40%) of the number of shares of Common Stock outstanding, or (b) fifty percent (50%) of
the number of shares of Common Stock outstanding , if prior to such proposed acquisition the
Beneficial Ownership of the Investor and its Affiliates is less than forty percent (40%) of the
number of shares of Common Stock outstanding, only pursuant to a tender offer, exchange offer,
merger or other business combination involving the offer to acquire 100% of the Common Stock not
owned by the Investor and its Affiliates which in the case of any such transaction to be effected
by means of a tender or exchange offer, includes a commitment by the Investor or such Affiliate to
promptly consummate a merger (which may be a short-form merger) to acquire any remaining shares of
Common Stock at the same price.

     Section 3.4 Section 203 of the DGCL. The Board, prior to the execution of the Share Exchange
Agreement, has taken all necessary action to ensure that the transactions contemplated by the Share
Exchange Agreement and the consummation of any of the transactions contemplated thereby (including
the execution, delivery and performance of this Agreement) will be deemed to be exceptions to the
provisions of Section 203 of the Delaware General Corporation Law (the “DGCL”), including the
approval of any transaction contemplated thereby that results in any “affiliate” or “associate” (as
each such term is defined in Section 203 of the DGCL) of the Investor becoming an “interested
stockholder” (as defined in Section 203 of the DGCL) by virtue of the Investor or its “affiliates”
or “associates” owning any Common Stock acquired pursuant to the Share Exchange Agreement or after
the Closing pursuant to Section 3.1 of this Agreement. Accordingly, the ownership by the Investor,
its “affiliates” and its “associates” of Common Stock acquired pursuant to the Share Exchange
Agreement or after the Closing pursuant to Section 3.1 of this Agreement will not result in the
provisions of Section 203 of the DGCL applicable to a “business combination” (as defined in Section
203 of the DGCL) to apply between such persons (or their “affiliates” or “associates”) and the
Company.

     Section 3.5 Rights Agreement. The Board, prior to the execution of the Share Exchange
Agreement, has taken all necessary action to render the Rights Agreement inapplicable to the
transactions contemplated by the Share Exchange Agreement and the consummation of any of the
transactions contemplated thereby (including the execution, delivery and performance of this
Agreement)..

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ARTICLE 4

REGISTRATION RIGHTS

     Section 4.1 Demand Registrations.

          (a) Requests for Registration. After the expiration of the Lock-up Period and subject
to the terms, conditions and limitations of this Article 4, the holders of twenty-five percent
(25%) or more of the Investor Registrable Securities then outstanding may request that the Company
effect a registration for a Public Offering in the United States of all or any portion of the
Investor Registrable Securities; provided that the Investor Registrable Securities to be included
in such registration shall (i) have a market value on the date such request for registration is
received of at least $25 million based on the closing price of the Common Stock on the trading day
immediately preceding the day on which such request is delivered, or (ii) represent at least six
percent (6%) of the total shares of Common Stock then outstanding, or (iii) represent all Investor
Registrable Securities then outstanding. All registrations requested as described in and meeting
the requirements of this Section 4.1 are referred to herein as “Demand Registrations.” Each
request for a Demand Registration shall specify the approximate number of Registrable Securities
requested to be registered. Subject to Section 4.1(c) below, any such Demand Registration may
include registration of shares on a “shelf” Registration Statement pursuant to Rule 415 under the
Securities Act. Promptly after receipt of any such request pursuant to this Section 4.1, the
Company shall give written notice of such requested registration to all other holders of
Registrable Securities and, subject to the terms of this Agreement, shall include in such
registration all Registrable Securities with respect to which the Company has received written
requests indicating the holder of such Registrable Securities and the number of Registrable
Securities that such holder elects to include in such registration within twenty (20) days after
the receipt of the Company’s notice.

          (b) Priority on Demand Registrations. If a Demand Registration is an Underwritten
Offering and the managing underwriters, which shall be one (1) or more nationally recognized
investment banks selected by the Company and reasonably acceptable to the holders of a majority of
the Investor Registrable Securities to be included in such Demand Registration, advise the Company
in writing that they have determined in good faith that the number of Registrable Securities and,
if permitted hereunder, other securities requested to be included in such offering exceeds the
number of Registrable Securities and other securities, if any, which can be sold therein without
adversely affecting the marketability of the offering or the trading price of the Common Stock, the
Company shall include in such registration (i) first, the quantity of Investor Registrable
Securities requested to be included in such Demand Registration, pro rata among the respective
holders thereof on the basis of the number of Investor Registrable Securities requested to be
included in such registration by each such holder, (ii) second, securities to be sold by the
Company for its own account, to the extent that in the opinion of such underwriters such
securities can be sold without adversely affecting the marketability of the offering or the trading
price of the Common Stock, (iii) third, other Registrable Securities requested to be included in
such registration, which in the opinion of such underwriters can be sold without adversely
affecting the marketability of the offering or the trading price of the Common Stock, pro rata
among the respective holders thereof on the basis of the number of shares requested to be included
in such registration, and (iv) fourth, other securities requested to be included in such
registration, which in the opinion of such underwriters can be sold without

19

 

adversely affecting the marketability of the offering or the trading price of the Common
Stock, pro rata among the respective holders thereof on the basis of the number of shares requested
to be included in such registration by each such holder. Any Persons other than holders of
Registrable Securities who participate in Demand Registrations which are not at the Company’s or
its Subsidiaries’ expense must pay their share of the Registration Expenses.

          (c) Restrictions on Demand Registrations. Notwithstanding anything to the contrary in
this Section 4.1:

               (i) The Company shall not be obligated (A) to effect more than two (2) Demand Registrations in
any period of fifteen (15) months, (B) any Demand Registration within one hundred thirty-five (135)
days after the effective date of a previous Demand Registration or a previous registration in which
the holders of Registrable Securities were given piggyback rights pursuant to Section 4.2 hereof
(in which the number of Investor Registrable Securities requested to be included in such Piggyback
Registration were not reduced by more than 50% pursuant to Section 4.2(b) or (c) hereof) or (C) to
have more than one (1) “shelf” Registration Statement pursuant to Rule 415 effective under the
Securities Act at any time (other than shelf registrations filed pursuant to Rule 429 under the
Securities Act).

               (ii) A Demand Registration will not be deemed to have been effected for purposes of this
Section 4.1 unless the Registration Statement relating thereto (A) has become effective under the
Securities Act, (B) has remained effective for a period of at least sixty (60) days (or such
shorter period in which all Registrable Securities of the holders included in such registration
have actually been sold thereunder), and (C) at least seventy-five percent (75%) of the Registrable
Securities requested to be included in such Demand Registration by the holders of the Investor
Registrable Securities are so included.

               (iii) If the majority of the At-Large Directors determines in good faith that the filing or
effectiveness of a Registration Statement in connection with any requested Demand Registration (A)
would be reasonably likely to interfere with any pending or contemplated acquisition, divestiture,
financing, registered primary offering or other transaction involving the Company or (B) would
require disclosure of facts or circumstances and which the Company would not otherwise be required
to then disclose, which disclosure would, in the good faith judgment of the Board, be
disadvantageous to the Company, or (C) would otherwise be materially detrimental to the Company,
then the Company may delay (or if necessary or advisable withdraw) the filing, or delay the
effectiveness, of such registration (or offers and sales of securities registered under a shelf
Demand Registration) for a period of up to one hundred twenty (120) days so long as the basis for
such delay continues (it being agreed that the Company may not apply the provisions of this
clause (iii) to delay requested registrations for an aggregate period of more than one hundred
eighty (180) days in any twelve (12)-month period).

               (iv) In order to delay the filing of a Registration Statement pursuant to Section 4.1(c)(iii),
the Company shall promptly (but in any event within ten (10) calendar days) upon determining to
make such deferral, deliver to each holder requesting such Demand Registration a certificate of an
authorized officer stating that the Company is delaying such filing pursuant to Section 4.1(c)(iii)
and an approximation of the anticipated delay. Within twenty (20) calendar days after receiving
such certificate, the holders of a majority of the Investor

20

 

Registrable Securities participating in such offering may withdraw their request for a Demand
Registration by giving written notice to the Company, and if withdrawn, the request for Demand
Registration shall be deemed not to have been made for all purposes of this Agreement. In the
event the Company delays or suspends the sale of securities registered under a shelf Demand
Registration pursuant to Section 4.1(c)(iii), then the required period of effectiveness set forth
in Section 4.1(c)(ii)(B) shall be extended by the number of days of such delay or suspension that
occurred during the effectiveness of such Registration Statement.

          (d) Demand Withdrawal. Any holder of Registrable Securities that has requested its
Registrable Securities be included in a Demand Registration pursuant to Section 4.1(a) may withdraw
all or any portion of its Registrable Securities included in a Demand Registration from a Demand
Registration at any time prior to the effectiveness of the applicable Registration Statement. Upon
receipt of a notice to such effect from holders of Registrable Securities with respect to all of
the Registrable Securities included in such Demand Registration, the Company shall cease all
efforts to secure effectiveness of the applicable Demand Registration Statement and such
registration nonetheless shall be deemed a Demand Registration for purposes of Section 4.1(c)
unless the withdrawal is made (i) following the occurrence of a Material Adverse Change or (ii)
after a delay of more than ninety (90) days in the effectiveness of the registration statement from
the date on which the Demand Registration was requested.

          (e) Underwritings. In the case of any Demand Registration that is an Underwritten
Registration, the managing underwriters shall be selected by the Company and shall be reasonably
acceptable to the Investor. No holder of Registrable Securities may participate or have any of
such holder’s Registrable Securities included in such Underwritten Registration unless such holder
accepts the terms of such underwriting as approved by the Company and enters into such
underwriting, custody, indemnity and other agreements, each in customary form and containing such
representations, warranties and other provisions as are customarily made by selling stockholders in
connection with similar Underwritten Registrations, and completes and delivers such questionnaires
and other documents as reasonably requested by the managing underwriters of such Underwritten
Offering.

     Section 4.2 Piggyback Registrations.

          (a) Right to Piggyback. Following the expiration of the Lock-up Period, whenever the
Company proposes to register any of its securities (other than pursuant to a Demand Registration or
any registration effected pursuant to Form S-4, S-8 or any successor forms and other than a
registration relating solely to the sale of securities to participants in a Company plan, a
registration relating to a reorganization of the Company or other transaction under Rule 145 of the
Securities Act, or a registration on any form that does not include substantially the same
information as would be required to be included in a Registration Statement covering the sale of
Registrable Securities) and the registration form to be used may be used for the registration of
Registrable Securities (a “Piggyback Registration”), the Company shall give prompt written notice
(but in no event less than twenty (20) calendar days prior to the proposed filing of such
Registration Statement) to all holders of Registrable Securities of its intention to effect such a
registration, setting forth (to the extent then known) the principal terms and conditions of such
issuance, including the anticipated proposed offering price (or range of offering prices), the
anticipated date of the filing of the Registration Statement and

21

 

the number and type of securities to be registered, and shall, subject to the other provisions
of this Section 4.2, include in such registration all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within ten (10) calendar days after
the receipt of the Company’s notice. No registration of Registrable Securities effected under this
Section 4.2 will relieve the Company of any of its obligations to effect registrations of Investor
Registrable Securities pursuant to Section 4.1 hereof. The election by any holder of Registrable
Securities not to exercise its rights to have any or all of its Registrable Securities registered
pursuant to this Section 4.2 shall not affect its rights as to future issuances.

          (b) Priority on Primary Registrations. If a Piggyback Registration is an primary
Underwritten Registration on behalf of the Company, and the managing underwriters advise the
Company in writing that they have determined in good faith that the number of securities requested
to be included in such registration exceeds the number which can be sold in such offering without
adversely affecting the marketability of the offering, the Company shall include, subject to
Section 4.2(d), in such registration (i) first, the securities the Company proposes to sell, (ii)
second, Registrable Securities requested to be included in such registration, pro rata among the
respective holders thereof on the basis of the number of shares requested to be included in such
registration by each such holder and (iii) third, at the discretion of the Company, other
securities of the Company requested to be included in such registration, pro rata among the
respective holders thereof on the basis of the number of shares requested to be included in such
registration by each such holder.

          (c) Priority on Secondary Registrations. If a Piggyback Registration is an secondary
Underwritten Registration on behalf of holders of the Company’s securities who have the contractual
right to initiate such a registration (including pursuant to a Demand Registration), and the
managing underwriters advise the Company in writing that they have determined in good faith that
the number of securities requested to be included in such registration exceeds the number which can
be sold in such offering without adversely affecting the marketability of the offering, the Company
shall include, subject to the other provisions of this Section 4.2, in such registration, (i)
first, the securities requested to be included therein by the holders initially requesting such
registration, pro rata among the respective holders thereof on the basis of the number of shares
requested to be included in such registration by each such holder, and (ii) second, any Registrable
Securities requested (including under this Section 4.2) to be included therein, pro rata among the
respective holders thereof on the basis of the number of shares owned by each such holder.

          (d) Withdrawal. Any holder of Registrable Securities shall have the right to withdraw
all or part of its request for inclusion of its Registrable Securities in a Piggyback Registration
at any time prior to later of (1) the filing of the applicable Registration Statement, or (2) five
(5) Business Days prior to the effectiveness of the applicable Registration Statement, in each case
by giving written notice to the Company of its request to withdraw. The Company shall have the
right to terminate or withdraw any registration initiated by it under this Section 4.2 prior to the
effectiveness of the applicable Registration Statement whether or not any holder of Registrable
Securities has elected to include securities in such Registration Statement.

          (e) Certain Conditions. If any Piggyback Registration is an Underwritten
Registration, no holder of Registrable Securities may participate or have any of such holder’s

22

 

Registrable Securities included in such Underwritten Registration unless such holder accepts
the terms of such underwriting as approved by the Company and enters into such underwriting,
custody, indemnity and other agreements, each in customary form and containing such
representations, warranties and other provisions as are customarily entered into by selling
stockholders in connection with similar Underwritten Registrations, and completes and delivers such
questionnaires and other documents as reasonably requested by the managing underwriters of such
Underwritten Offering. No holders of Registrable Securities shall have any right to participate in
or approve the selection of the underwriters for an offering described in this Section 4.2.

     Section 4.3 Holdback Agreements.

          (a) Holders of Registrable Securities. Notwithstanding anything contained herein to
the contrary and to the extent not inconsistent with applicable law, each holder of Registrable
Securities shall not effect any public sale or distribution (including sales pursuant to Rule 144
under the Securities Act, but excluding, to the extent permitted by the underwriter managing the
registered public offering, sales effected to pay the exercise price of a stock option pursuant to
any broker-assisted exercise or “cashless” exercise of such stock option) of Equity Securities,
enter into a transaction which would have the same effect, or enter into any swap, hedge or other
arrangement that transfers, in whole or in part, any economic consequences of ownership of such
securities, whether any such aforementioned transaction is to be settled by delivery of such
securities or other securities, in cash or otherwise, or publicly disclose the intention to make
any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or
other arrangement, in each case during the ten (10) days prior to and the ninety (90) days after
the effective time of any (x) underwritten Demand Registration (except as part of such Underwritten
Registration) or (y) underwritten Piggyback Registration in which any of such holder’s Registrable
Securities are included (except as part of such Underwritten Registration) (a “Stand-off Period”),
except as otherwise agreed to by the underwriter managing the Underwritten Registration. If (i)
the Company issues an earnings release or other material news or a material event relating to the
Company and its Subsidiaries during the last seventeen (17) days of the Stand-off Period or (ii)
prior to the expiration of the Stand-off Period, the Company announces that it will release
earnings results during the sixteen (16)-day period beginning upon the expiration of the Stand-off
Period, then to the extent necessary for a managing or co-managing underwriter of a registered
offering required hereunder to comply with NASD Rule 2711(f)(4), the Stand-off Period shall be
extended until eighteen (18) days after the earnings release or the occurrence of the material news
or event, as the case may be.

          (b) The Company. The Company shall agree to such limitation on its public sale or
distribution of its Equity Securities as may be reasonably requested by the managing underwriters
in connection with any Underwritten Registration; provided, that such limitations shall not
continue beyond the one hundred thirty-fifth (135th) day after the effective date of the
Registration Statement in question.

     Section 4.4 Registration Procedures.

          (a) Whenever the holders of Investor Registrable Securities have requested that any Investor
Registrable Securities be registered pursuant to Section 4.1, the Company shall

23

 

use its reasonable best efforts to effect the registration and the sale of such Investor
Registrable Securities in accordance with the intended method of disposition thereof, and pursuant
thereto the Company shall as promptly as reasonably practicable (unless waived by the holders of a
majority of Investor Registrable Securities participating in such):

               (i) prepare the required Registration Statement including all exhibits and financial
statements required under the Securities Act to be filed therewith, and before filing a
Registration Statement, prospectus or any issuer free writing prospectus, or any amendments or
supplements thereto, (x) furnish to the underwriters, if any, and to the selling holders, copies of
all documents prepared to be filed, and to consider in good faith and discuss with such
underwriters, selling holders and counsel, any comments thereon by such underwriters, selling
holders and counsel and (y) not file any Registration Statement, prospectus or any amendments or
supplements thereto to which the holders of fifty percent (50%) of the Investor Registrable
Securities or the underwriters, if any, shall reasonably object (other any amendments or
supplements that, in the good faith judgment of the Company, are required to correct any
misstatement or omission of a material fact, or make any statement in any such Registration
Statement or prospectus not misleading, or are otherwise required to comply with applicable law,
rules or regulations);

               (ii) file with the SEC, a Registration Statement with respect to such Registrable Securities
and use its reasonable best efforts to cause such Registration Statement to become effective and to
remain effective until the earlier of eighteen (18) months (in the case of a shelf Demand
Registration Statement) or sixty (60) days (in the case of any other Demand Registration Statement)
from the effective time of such Registration Statement or such earlier time as the Registrable
Securities covered by such Registration Statement have been sold in accordance with the intended
method of distribution therefore; and

               (iii) prepare and file with the SEC such supplements and amendments to such Registration
Statement as may be required to keep such Registration Statement effective for the period of time
provided in Section 4.4(a)(ii) above.

          (b) With respect to each Registration Statement that includes Registrable Securities (unless
waived by the holders of a majority of Registrable Securities participating in such), the Company
shall:

               (i) notify the selling holders and the managing underwriters, if any, and (if requested)
confirm such advice in writing, as soon as practicable after notice thereof is received by the
Company (a) when the Registration Statement or any amendment thereto has been filed or becomes
effective or the prospectus or any amendment or supplement to the prospectus has been filed, (b) of
any written comments or requests by the SEC or any other federal, state or regulatory authority for
amendments or supplements to the Registration Statement (or the related prospectus), (c) of the
issuance by the SEC of any stop order or cease trade order suspending the effectiveness of the
Registration Statement or any order preventing or suspending the use of any preliminary prospectus
or prospectus, or the initiation or threatening of any proceedings for such purposes, (c) of the
receipt by the Company of any notification with respect to the suspension of the qualification of
the Registrable Securities for offering or sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, and (d) if, at

24

 

any time, the representations and warranties of the Company in any applicable underwriting
agreement cease to be true and correct in all material respects;

               (ii) furnish to each selling holder and each managing underwriter, without charge, one (1)
copy of the Registration Statement and any post-effective amendment or supplement thereto,
including without limitation financial statements and schedules, all documents incorporated therein
by reference and all exhibits (including without limitation those incorporated by reference);

               (iii) deliver to each selling holder and each underwriter, if any, without charge, as many
copies of the applicable prospectus (including each preliminary prospectus) and any amendment or
supplement thereto, and such other documents as such selling holder or underwriter may reasonably
request in order to facilitate the disposition of the Registrable Securities by such selling holder
or underwriter, it being understood that the Company consents (subject to the provisions of Section
4.4(b)(v) below) to the use of such prospectus or any amendment or supplement thereto by such
selling holder and the underwriters, if any, in connection with the offering and sale of the
Registrable Securities covered by such prospectus or any amendment or supplement thereto;

               (iv) use its reasonable best efforts to register or qualify such Registrable Securities under
such other securities or blue sky laws of such jurisdictions as the managing underwriter of any
Underwritten Registration reasonably requests; provided, that the Company shall not be required to
(i) qualify generally to do business in any jurisdiction where it would not otherwise be required
to qualify but for this subsection, (ii) subject itself to taxation in any such jurisdiction or
(iii) consent to general service of process in any such jurisdiction;

               (v) promptly notify the selling holders and the managing underwriters, if any, at any time
during the period of effectiveness set forth in Section 4.4(a) above, when the Company becomes
aware of the happening of any event as a result of which the prospectus included in such
Registration Statement (as then in effect) contains any untrue statement of a material fact or
omits to state a material fact necessary to make the statements therein when such prospectus was
delivered not misleading in light of the circumstances then existing or, if for any other reason it
shall be necessary during such time period to amend or supplement the prospectus in order to comply
with the Securities Act, as promptly as practicable thereafter, prepare and file with the SEC, a
supplement or amendment to such prospectus, which will correct such statement or omission or effect
such compliance. Each holder agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in this Section 4.4(b)(v) such holder will forthwith
discontinue disposition of Registrable Securities pursuant to such Registration Statement until
such holder’s receipt of the copies of the supplemented or amended prospectus contemplated by this
Section 4.4(b)(v) or until it is advised in writing by the Company that the use of the prospectus
may be resumed, and has received copies of any additional or supplemental filings which are
incorporated by reference in the prospectus and, if so directed by the Company, such holder will
deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then
in such holder’s possession, of the prospectus, covering such Registrable Securities current at the
time of receipt of such notice;

25

 

               (vi) use its reasonable best efforts to prevent, or obtain the withdrawal
of, any stop order or other order or notice preventing or suspending the use of any
preliminary or final prospectus or any issuer free writing prospectus;

               (vii) promptly incorporate in a prospectus supplement or post-effective amendment such
information as the managing underwriter or underwriters reasonably determines should be included
therein relating to the plan of distribution with respect to such Registrable Securities; and make
all required filings of such prospectus supplement or post-effective amendment as soon as
reasonably practicable after being notified of the matters to be incorporated in such prospectus
supplement or post-effective amendment;

               (viii) cause all Registrable Securities covered by the Registration Statement to be listed on
each securities exchange or automated quotation system on which similar securities issued by the
Company are then listed or quoted;

               (ix) provide a transfer agent and registrar and, if applicable, a CUSIP number for all such
Registrable Securities not later than the effective date of the first Registration Statement
relating to Registrable Securities or securities of any class of the Company;

               (x) cooperate with the selling holders and the managing underwriter or underwriters, if any,
to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be sold and not bearing any restrictive legends; and enable such Registrable
Securities to be in such denominations and registered in such names as the managing underwriters
may request; and

               (xi) if the Registration Statement is an Underwritten Registration, enter into an underwriting
agreement with the underwriters in customary form and containing such representations, warranties
and other provisions as are customarily made by issuers in connection with similar Underwritten
Registrations.

          (c) It shall be a condition precedent to the obligations of the Company to take any action
pursuant to Section 4.1 or 4.2 that each seller of Registrable Securities as to which any
registration is being effected shall furnish to the Company such information regarding such seller,
the Registrable Securities held by such seller, and the intended method of disposition of such
securities as shall be required to timely effect the registration of such seller’s Registrable
Securities.

          (d) If, at any time at a shelf registration under Rule 415 under the Securities Act and under
which Investor Registrable Securities have been registered is in effect, the Company shall furnish
to the Investor a certificate of an authorized officer stating that the continued use of such shelf
Registration Statement would require the Company to make an Adverse Disclosure, then the Company
may suspend the use by the Investor of such Registration Statement for period of up to ninety (90)
days (a “Shelf Suspension”); provided however, that the Company shall not be permitted to exercise
a Shelf Suspension more than twice in any twelve (12)-month period for each Registration Statement.
In the case of a Shelf Suspension, the Investor agrees to suspend use of the applicable prospectus.
The Company shall promptly notify

26

 

the Investor of the termination of any Shelf Suspension, and
shall promptly amend or supplement
the prospectus, if necessary, so it does not contain any untrue statement or omission and
furnish to the Investor such numbers of copies of the amended or supplemented prospectus as it may
reasonably request. The Company agrees, if necessary, to supplement or amend the Registration
Statement, if required by the Securities Act or the rules or regulations promulgated thereunder.
In the event the Company exercises a Shelf Suspension, then the required period of effectiveness
set forth in Section 4.1(c)(ii)(B) shall be extended by the number of days of such Shelf Suspension
that occurred during the effectiveness of such Registration Statement. As used herein, “Adverse
Disclosure” means public disclosure of material non-public information that, in the good faith
judgment of the At-Large Directors, (i) would be required to be made in any report or Registration
Statement filed with the SEC by the Company so that such report or Registration Statement would not
be materially misleading; (ii) would not be required to be made at such time but for the filing,
effectiveness or continued use of such report or Registration Statement, and (iii) the Company has
a bona fide business purpose for not disclosing publicly.

          (e) No holder of Investor Registrable Securities shall have any right to obtain or seek an
injunction restraining or otherwise delaying any registration as a result of any controversy that
might arise with respect to the interpretation or implementation of any provision of this
Agreement.

     Section 4.5 Registration Expenses.

          (a) All expenses incident to the Company’s performance of or compliance with this Agreement,
including all registration and filing fees, fees and expenses of compliance with securities or blue
sky laws, printing expenses, messenger and delivery expenses, fees and disbursements of custodians,
and fees and disbursements of counsel for the Company and all independent certified public
accountants, underwriters (excluding discounts and commissions and taxes imposed with respect to
Registrable Securities on the sale and transfer thereof) and other Persons retained by the Company
(all such expenses being herein called “Registration Expenses”), shall be borne by the Company, and
the Company shall pay its internal expenses (including all salaries and expenses of its officers
and employees performing legal or accounting duties), the expense of any annual audit or quarterly
review, the expense of any liability insurance and the expenses and fees for listing the securities
to be registered on the Exchange.

          (b) All other Registration Expenses to the extent not expressly reimbursed in this Section
4.5, shall be borne by all of the sellers of securities included in such registration in proportion
to the aggregate selling price of the securities to be so registered (it being understood that all
fees and expenses (including with respect to any fees and expenses of counsel and other advisors)
of any holder of Registrable Securities shall be borne by such holder).

     Section 4.6 Indemnification.

          (a) The Company agrees to indemnify and hold harmless, to the full extent permitted by law,
each holder of Registrable Securities, such holder’s officers, directors, stockholders, members,
partners, agents, advisors, representatives and employees, and each Person who controls such holder
(within the meaning of the Securities Act) against all losses, claims, damages, liabilities,
judgments, costs (including reasonable and documented costs of

27

 

investigation) and expenses
(including reasonable attorney’s fees) arising out of or based upon,
any untrue or alleged untrue statement of a material fact contained in any Registration
Statement, prospectus or preliminary prospectus with respect to such Registrable Securities or any
amendment thereof or supplement thereto, or any document incorporated by reference therein or any
omission in any application or other document or communication executed by or on behalf of the
Company filed in any jurisdiction in order to qualify any securities covered by such Registration
Statement under the “blue sky” or securities laws thereof, or any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements therein not
misleading, provided, that the Company shall not be obligated to indemnify any holder of
Registrable Securities (or any officer, director or controlling Person of such holder) to the
extent that any such loss, claim, damage, liability, judgment, cost or expense arises out of or is
based upon an untrue statement or alleged untrue statement or omission or alleged omission made in
reliance on and in conformity with written information furnished to the Company by such holder
expressly for use therein.

          (b) In connection with any Registration Statement in which a holder of Registrable Securities
is participating, each such holder shall furnish to the Company in writing such information and
affidavits as the Company reasonably requests for use in connection with any such Registration
Statement or prospectus and, to the extent permitted by law, shall indemnify the Company, its
Directors and officers and each Person who controls the Company (within the meaning of the
Securities Act), any underwriter and each other holder of Registrable Securities participating in
the offering contemplated by such Registration Statement against any losses, claims, damages,
liabilities, judgments, costs (including reasonable and documented costs of investigation) and
expenses (including reasonable attorney’s fees) arising out of or based upon any untrue or alleged
untrue statement of material fact contained in the Registration Statement, prospectus or
preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements
therein not misleading, to the extent (but only to the extent) that such untrue statement or
omission is made in reliance on and in conformity with any written information furnished to the
Company by such holder or its agents expressly for use therein; provided that such obligation to
indemnify shall be individual, not joint and several, for each holder and shall be limited to the
net amount of proceeds received by such holder from the sale of Registrable Securities pursuant to
such Registration Statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such holder or any indemnified party and shall survive
the transfer of such Registrable Securities by such holder.

          (c) Any Person entitled to indemnification hereunder shall (i) give prompt written notice to
the indemnifying party of any claim with respect to which it seeks indemnification or the
commencement of any action or proceeding for which the indemnified party intends to claim
indemnification or contribution pursuant to this Agreement and (ii) permit such indemnifying party
to participate in such claim, action or proceeding and, to the extent it may wish to assume the
defense at its own expense of such claim with counsel reasonably satisfactory to the indemnified
party, permit such indemnifying party to assume such defense; provided, that any Person entitled to
indemnification hereunder shall have the right to select and employ separate counsel and to
participate in the defense of such claim, which fees and expenses of such separate counsel shall be
at the expense of the indemnified party unless (A) the indemnifying party has agreed in writing to
pay such fees or expenses, (B) the indemnifying

28

 

party shall have elected not to, or shall have
failed to assume the defense of such claim within a
reasonable time after receipt of notice of such claim from the indemnified party and employ
counsel reasonably satisfactory to such indemnified party, (C) there may be legal defenses
available to it or other indemnified parties that are different from or in addition to those
available to the indemnifying party, or (D) the indemnified shall have been advised by counsel that
a conflict of interest may exist between such Person and the indemnifying party with respect to
such claims (in which case, if the indemnified party notifies the indemnifying party in writing
that such indemnified party elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of such claim on
behalf of such Person). In no event shall an indemnifying party be responsible, in any one action
or separate but similar actions arising out of the same general allegations, for the fees and
expenses of more than one separate counsel (plus one local counsel, if reasonably required) for all
indemnified parties. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, suit, proceeding or investigation shall not
relieve such indemnifying party of any liability to the indemnified party under this Section 4.6
except to the extent that the indemnifying party is actually prejudiced thereby. The omission of
an indemnified party to deliver written notice to the indemnifying party will not relieve such
indemnifying party of any liability that it may have to any indemnified party otherwise than under
this Section 4.6.

          (d) If the indemnification provided for in this Section 4.6 from the indemnifying party is
applicable by its terms but is unavailable to a party that would have been entitled to
indemnification pursuant to the provisions of this Section 4.6 or insufficient in respect of any
losses, claims, damages, liabilities, judgments, costs (including reasonable and documented costs
of investigation) and expenses (including reasonable attorney’s fees) referred to herein, then the
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities,
judgments, costs (including reasonable and documented costs of investigation) and expenses
(including reasonable attorney’s fees) in such proportion as is appropriate to reflect the relative
fault of the indemnifying party and indemnified parties in connection with the actions which
resulted in such losses, claims, damages, liabilities, judgments, costs (including reasonable and
documented costs of investigation) and expenses (including reasonable attorney’s fees), as well as
other relevant equitable considerations. The relative fault of such indemnifying party and
indemnified parties shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact, has been made by, or relates to information supplied by,
such indemnifying party or indemnified parties, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action. The amount paid or payable by a
party as a result of losses, claims, damages, liabilities, judgments, costs (including reasonable
and documented costs of investigation) and expenses (including reasonable attorney’s fees) referred
to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such
party in connection with any investigation or proceeding. The parties hereto agree that it would
not be just or equitable if contribution pursuant to this Section 4.6(d) were determined by pro
rata allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in this Section 4.6(d). No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to

29

 

contribution from any Person who was not guilty of such fraudulent misrepresentation.
Notwithstanding the provisions of this Section 4.6(d), in connection with any Registration
Statement filed by the Company, a selling holder of Registrable Securities shall not be required to
contribute any amount in excess of the net amount of proceeds received by such holder from the sale
of Registrable Securities giving rise to such contribution obligation.

          (e) No indemnifying party shall, without the prior written consent of each indemnified party,
effect the settlement or compromise of, or consent to the entry of any judgment with respect to,
any pending or threatened action or claim in respect of which indemnification or contribution may
be sought hereunder (whether or not the indemnified party is an actual or potential party to such
action or claim) unless such settlement, compromise, or judgment (A) includes an unconditional
release of the indemnified party from all liability arising out of such action or claim without any
payment or consideration provided or obligation incurred by any indemnified party and (B) does not
include a statement as to or an admission of fault, culpability, or a failure to act, by or on
behalf of any indemnified party. No indemnification shall be available under this Agreement in
respect of any settlement of any action or claim effected by any indemnified party without the
prior written consent of the indemnifying party, which shall not be unreasonably withheld or
delayed.

          (f) The indemnification and contribution by any such party provided for under this Agreement
shall be in addition to any other rights to indemnification or contribution which any indemnified
party may have pursuant to law or contract and will remain in full force and effect regardless of
any investigation made or omitted by or on behalf of the indemnified party or any officer,
director, or controlling Person of such indemnified party and will survive the transfer of
securities.

     Section 4.7 Relation to Article 2. Nothing contained in this Article 4 shall be deemed to
affect any provision of Article 2 of this Agreement, and any sales made in Demand Registrations or
Piggyback Registrations contemplated by this Article 4 may be made only in full compliance with all
of the restrictions and limitations set forth in Article 2.

ARTICLE 5

MISCELLANEOUS

     Section 5.1 Termination. This Agreement shall terminate, except for (a) this Article 5 and
Section 4.6 (which shall survive such termination), (b) Section 1.5 (which shall survive until the
second anniversary of the date on which this Agreement otherwise terminates as provided below), (c)
Section 3.2 (which shall survive until the first anniversary of the date on which this Agreement
otherwise terminates as provided below), and (d) Section 2.1 (which shall survive until the earlier
of (A) the second anniversary of the date on which Investor and its Affiliates no longer hold
shares of Common Stock representing in the aggregate eleven percent (11%) or more of the total
outstanding shares of Common Stock or (B) such time as Investor and its Affiliates no longer hold
shares of Common Stock representing, in the aggregate, five percent (5%) or more of the total
outstanding shares of Common Stock), as follows: (i) at such time as Investor and its Affiliates
no longer hold shares of Common Stock representing in the aggregate

30

 

eleven percent (11%) or more of
the total outstanding shares of Common Stock, and (ii) upon the
written consent of the parties hereto in such number and manner required for amendments hereto
as provided in Section 5.7. No termination under this Agreement will relieve any Person of
liability for breach prior to such termination.

     Section 5.2 Expenses. Except as otherwise provided herein (and except as provided in the
Share Exchange Agreement), all expenses incurred in connection with this Agreement and the
transactions contemplated hereby, including any fees and disbursements of counsel, independent
accountants and other advisors, shall be paid by the party incurring such expenses.

     Section 5.3 Successors and Assigns; Assignment. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors,
permitted assigns, heirs, executors and administrators of the parties hereto. Except as provided
in Section 2.1, this Agreement may not be assigned by the Investor or a Permitted Transferee
without the prior written consent of the Company. In the event of any such assignment as a result
of which more than one (1) Person shall be an Investor hereunder, all references to “the Investor”
shall be deemed to refer to all such Investors.

     Section 5.4 No Third Party Beneficiaries. This Agreement is not intended, and shall not be
deemed, to confer any rights or remedies upon any Person other than the parties hereto or otherwise
create any third-party beneficiary hereto.

     Section 5.5 Entire Agreement. This Agreement and the other agreements or documents referred
to herein, constitutes the full and entire understanding and agreement among the parties with
respect to the subject matter hereof and supersede any prior understandings, agreements or
representations by or among the parties, written or oral, that may have related to the subject
matter hereof in any way.

     Section 5.6 Severability. If any provision of this Agreement, or the application thereof,
shall for any reason and to any extent be invalid or unenforceable, then the remainder of this
Agreement and the application of such provision to other persons or circumstances shall be
interpreted so as reasonably to effect the intent of the parties hereto.

     Section 5.7 Amendment and Waiver. Any term or provision of this Agreement may be amended, and
the observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only by a writing signed by the Company and
the Investor (or, to the extent additional Persons have joined this Agreement as Investors, by the
Investors holding a majority of the Common Shares owned by all such Investors). The waiver by a
party of any breach hereof or default in the performance hereof shall not be deemed to constitute a
waiver of any other default or any succeeding breach or default. The failure of any party to
enforce any of the provisions hereof shall not be construed to be a waiver of the right of such
party thereafter to enforce such provisions.

     Section 5.8 Notices. Except as otherwise provided herein, all notices required or permitted
hereunder shall be in writing and shall be deemed effectively given and received: (a) upon
personal hand delivery to the party to be notified; (b) when sent by confirmed facsimile if sent
during normal business hours of the recipient, if not, then on the next Business Day; or (c)

31

 

one (1) Business Day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent,
with respect to the Company, the Investor and any Permitted Transferee, to their respective
addresses specified in the Share Exchange Agreement (or at such other address as any such party may
specify by like notice). The Investor will promptly provide the Company with written notice if at
any time an Investor or other Permitted Transferee no longer satisfies the criteria of a Permitted
Transferee.

     Section 5.9 Interpretation. The words “hereof”, “herein” and “hereunder” and words of like
import used in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement. When reference is made in this Agreement to an Article or a Section,
such reference shall be to an Article or Section of this Agreement, unless otherwise indicated.
The table of contents, table of defined terms and headings contained in this Agreement are for
convenience of reference only and shall not affect in any way the meaning or interpretation of this
Agreement. The language used in this Agreement shall be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict construction shall be applied
against any party. Whenever the context may require, any pronouns used in this Agreement shall
include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and
pronouns shall include the plural, and vice versa. All references to agreements shall mean such
agreement as may be amended or otherwise modified from time to time. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation.”

     Section 5.10 Governing law.

          (a) This Agreement shall be governed in all respects by the laws of the State of Delaware.
Any disagreement, issue, dispute, claim, demand or controversy arising out of or relating to this
Agreement (each, a “Dispute”) shall be brought in the Chancery Court of Delaware, so long as such
court shall have subject matter jurisdiction over such Dispute, or if it does not have subject
matter jurisdiction over such Dispute, the United States District Court or other state court in
Delaware having jurisdiction of the Dispute. Each of the parties hereby irrevocably consents to
the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such
Dispute and irrevocably waives, to the fullest extent permitted by law, any objection that it may
now or hereafter have to the laying of the venue of any such Dispute in any such court and that any
such Dispute which is brought in any such court has been brought in an inconvenient forum. Process
in any such Dispute may be served on any party anywhere in the world, whether within or without the
jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of
process on such party as provided in Section 5.8 shall be deemed effective service of process on
such party.

          (b) TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF

32

 

LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 5.10(b).

     Section 5.11 Specific Performance; No Special Damages.

          (a) The parties hereto agree that the obligations imposed on them in this Agreement are
special, unique and of an extraordinary character, and that, in the event of breach by any party,
damages would not be an adequate remedy and each of the other parties shall be entitled to specific
performance and injunctive and other equitable relief in addition to any other remedy to which it
may be entitled, at law or in equity; and the parties hereto further agree to waive any requirement
for the securing or posting of any bond in connection with the obtaining of any such injunctive or
other equitable relief.

          (b) Each party agrees that there shall be no special, exemplary, punitive or multiple damages
connected with or resulting from any breach of this Agreement, or actions undertaken in connection
with or related hereto, including any such damages which are based upon breach of contract, tort,
breach of warranty, strict liability, statute, operation of law or any other theory of recovery,
except to the extent such damages are actually incurred by a party hereunder to a third party, and
hereby waives any rights to claim such damages. For purposes of clarity, the foregoing does not
exclude consequential, indirect or incidental damages. Notwithstanding anything to the contrary in
the foregoing, no damages (including lost profits) based on potential appreciation of the value of
the Common Stock or of hypothetical investment returns or of potential alternative investments
shall be taken into account in determining the amount of damages.

     Section 5.12 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original, but all of which together shall constitute one instrument.

[Remainder of Page Intentionally Left Blank.]

33

 

     IN WITNESS WHEREOF, the parties hereto have executed this Stockholder Agreement as of the date
first set forth above.

	 	 	 	 	 
	 	TRIDENT MICROSYSTMES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NXP B.V.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT A

Defined Terms

     “ADTV” means, as of any trading day, the average daily reported trading volume for the Common
Stock on all national securities exchanges for the twelve full calendar weeks immediately preceding
such trading day.

     “Activist Investor” means, as of any date of determination, a Person that has, within the five
year period immediately receding such date of determination, (i) made or been a “participant” in
any “solicitation” of “proxies” (as such terms are used in Regulations 14A or 14C under the
Exchange Act) for an issuer’s equity securities in connection with a proposed Change of Control or
a proposal for the election or replacement of directors not approved (at the time of the first such
proposal) by the board of directors of such issuer, or (ii) commenced a “tender offer” (as such
term is used in Regulation 14D under the Exchange Act) to acquire the equity securities of an
issuer that was not approved (at the time of commencement) by the board of directors of such issuer
in a Schedule 14D-9 filed under such Regulation 14D, or (iii) publicly indicated an intention or
expectation to do any of the foregoing.

     “Affiliate” means, with respect to any Person, means any other Person that directly, or
indirectly through one (1) or more intermediaries, controls, or is controlled by or under common
control with such Person. For purposes of this definition, “control” (including the terms
“controlling,” “controlled” and “under common control with”) means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise; provided, that
possession of ten percent (10%) of the voting securities of any Person shall be deemed to
constitute “control” for purposes of this Agreement.

     “Beneficially Own” and “Beneficial Ownership” and similar terms have the meaning set forth in
Rule 13d-3 under the Securities and Exchange Act of 1934, as amended.

     “Board” means the Board of Directors of the Company.

     “Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are
required or authorized by law to be closed in New York, New York.

     “Bylaws” means the Bylaws of the Company, as in effect on the Agreement Date and as the same
may be amended, supplemented or otherwise modified from time to time in accordance with the terms
thereof and the terms of the Certificate of Incorporation.

     “Capital Stock” means any and all shares of capital stock of the Company, including without
limitation, any and all shares of Common Stock and Preferred Stock.

     “Certificate of Designation” means the Certificate of Designation with respect to the
Company’s Series B Preferred Stock, par value $0.001 per share, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the terms thereof and
hereof.

A-1

 

     “Certificate of Incorporation” means the Second Amended and Restated Certificate of
Incorporation (including the Certificate of Designation) of the Company, as in effect on the
Agreement Date and as the same may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof and the terms of this Agreement.

     “Change of Control” means any of: (a) the purchase or other acquisition by any Person or group
of Persons, directly or indirectly, in one transaction or a series of related transactions, of
Common Stock that, immediately following consummation of the transaction(s), when combined with any
other Common Stock Beneficially Owned by such Person or group, represent more than fifty percent
(50%) of the Diluted Common Shares Outstanding; (b) the consummation of any tender offer or
exchange offer by any Person or group that results in such Person or group Beneficially Owning,
when combined with any other Common Stock Beneficially Owned by such Person or group, more than
fifty percent (50%) of the Diluted Common Shares Outstanding immediately following the consummation
of such tender or exchange offer; (c) the consummation of a merger, consolidation, amalgamation,
joint venture, business combination or other similar transaction involving the Company pursuant to
which the stockholders of the Company immediately preceding such transaction hold less than fifty
percent (50%) of the voting equity interests in the surviving or resulting entity of such
transaction; or (d) the purchase or other acquisition of a substantial portion of the assets of the
Company by any Person or group of Persons.

     “Committee Qualification Requirements” shall mean that the Series B Director shall, in the
good faith judgment of the Board, meet at all times during the Series B Director’s service on a
particular committee: (i) all independence requirements applicable to companies listed for
quotation on any Exchange on which the Common Stock is listed for members of the particular
committee pursuant to Exchange listing requirements and applicable law, (ii) in the case of the
Compensation Committee, be a “non-employee director” (within the meaning of Rule 16b-3) and an
“outside director” (within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder), and (iii) in the case of the Audit Committee, satisfy the
requirements of NASDAQ Marketplace Rule 5605(c) and any other requirements of any Exchange on which
the Common Stock is listed for serving on the Audit Committee.

     “Company Competitor” means any Person listed on Exhibit B hereto, together with any
Subsidiaries or controlled Affiliates of such Person. The Company shall be entitled to amend
Exhibit B annually by adding or substituting Persons reasonably believed by the Company to
be significant competitors of the Company and deleting Persons no longer reasonably believed to be
significant competitors of the Company. The Company will consult in good faith with Investor
regarding any proposed amendment of Exhibit B, but any such amendment shall be in the
Company’s sole discretion and Investor shall have no right to approve or object to any such
amendment.

     “Common Stock” means the Common Stock, par value $0.001 per share, of the Company and any
securities issued in respect thereof, or in substitution therefor, in connection with any stock
split, dividend or combination, or any reclassification, recapitalization, merger, consolidation,
exchange or other similar reorganization.

A-2

 

     “Confidentiality Agreement” means the confidentiality agreement, dated as of January 14, 2009
between the Company and the Investor.

     “Convertible Securities” means any outstanding securities which are convertible into,
exchangeable for or otherwise exercisable to acquire Voting Stock of the Company, including
convertible securities, warrants, rights or options to purchase Voting Stock.

     “Diluted Common Shares Outstanding” means the sum of (i) the number of outstanding shares of
Common Stock plus (ii) the number of shares of Common Stock issuable upon the conversion, exercise,
exchange or issuance of any other Equity Securities of the Company.

     “Director” means any member of the Board.

     “Economic Rights” means, with respect to a security, (i) the right to any pecuniary interest
in the security, including, without limitation, the right to receive dividends and distributions,
proceeds upon liquidation and receive the proceeds of disposition or conversion (if applicable) of
the security, (ii) or the right or ability to realize any profit or loss based on changes in the
trading price of the security, whether by means of any hedging, swap, option, short sale,
borrowing, lending, put, call or other derivative transaction or agreement.

     “Eligible Transferee” means any Person other than an Ineligible Transferee.

     “Equity Securities” means (a) any Capital Stock of the Company (including, without limitation,
Common Stock), (b) any warrants, options, or other rights to subscribe for or to acquire, directly
or indirectly, Capital Stock of the Company, whether or not then exercisable or convertible, (c)
any stock, notes, or other securities which are convertible into or exchangeable for, directly or
indirectly, Capital Stock of the Company, whether or not then convertible or exchangeable, (d) any
Capital Stock of the Company issued or issuable upon the exercise, conversion, or exchange of any
of the securities referred to in clauses (a) through (c) above, and (e) any securities issued or
issuable directly or indirectly with respect to the securities referred to in clauses (a) through
(d) above by way of stock dividend or stock split or in connection with a combination of shares,
recapitalization, reclassification, merger, consolidation, or other reorganization.

     “Exchange” means the stock exchange on which the Company’s securities are then traded, as the
case may be. For the avoidance of doubt, The NASDAQ Stock Market, or any successor thereto, shall
constitute an Exchange for purposes of this Agreement.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “First Tier Affiliate” means any of (i) any Subsidiary of the Investor and (ii) the Persons
listed in Exhibit C hereto.

     “Governmental Authority” means any: (A) nation, state, commonwealth, province, territory,
county, municipality, district or other jurisdiction of any nature; (B) national, federal, state,
local, municipal, foreign or other government; (C) governmental authority of any nature

A-3

 

(including any governmental division, department, agency, commission, instrumentality,
official, ministry, fund, foundation, center, organization, unit, body or Entity and any court or
other tribunal); or (D) entity to whom a Governmental Authority has assigned or delegated any
authority or oversight responsibilities.

     “Independent Director” means a Director who is independent of the Company under applicable law
and the rules of the Exchange.

     “Ineligible Transferee” means a Strategic Investor or an Activist Investor.

     “Investor Maximum Ownership Percentage” shall initially mean sixty percent (60%). Thereafter,
upon the disposition by the Investor or its Affiliates of any Common Stock or other Equity
Securities to any Person other than a Permitted Transferee, the Investor Maximum Ownership
Percentage shall be reduced to an amount (expressed as a percentage) equal to the lesser of (a) the
Investor Maximum Ownership Percentage immediately prior to such disposition, and (b) a fraction, of
which the numerator is the number of shares of Voting Stock Beneficially Owned by the Investor and
its Affiliates immediately following such disposition and the denominator of which is the total
number of shares of Voting Stock outstanding immediately following such disposition. The Investor
Maximum Ownership Percentage shall not be adjusted other than following dispositions of Equity
Securities by the Investor or its Affiliates to Persons other than the Investor and its Permitted
Transferees; provided, that if (i) pursuant to Section 3.1 Investor is offered the opportunity to
purchase Equity Securities in any Offering and does not elect to purchase its full Pro Rata Share
in such Offering, and (ii) within one year after the Closing of such Offering Investor has not
purchased (in the manner provided in Section 3.2(b)) additional shares of Common Stock equal to the
difference between Investor’s Pro Rata Share of such Offering and the number of shares of Common
Stock actually purchased by Investor under Section 3.1 in connection with such Offering, then the
Investor Maximum Ownership Percentage shall be reduced as if (x) Investor had purchased its full
Pro Rata Share in such Offering and (y) Investor had thereafter sold a number of shares of Common
Stock equal to the amount (if any) by which such Pro Rata Share exceeds the sum of (A) the number
of share of Common Stock actually purchased by Investor under Section 3.1 in connection with such
Offering and (B) the number of shares of Common Stock actually purchased by Investor in the manner
provided in Section 3.2(b) during the one-year period immediately following the closing of such
Offering. Once reduced, the Investor Maximum Ownership Percentage shall never be increased
following any subsequent disposition or acquisition of Common Stock or other event or transaction.
The Investor Maximum Ownership Percentage shall never exceed sixty percent (60%).

     “Investor Registrable Securities” means (i) the Common Shares and any Common Stock acquired
pursuant to Section 3.1 hereof, (ii) all shares of Common Stock transferred to any Person in
accordance with clause (3) of Section 2.1(b), or (iii) any shares of Common Stock issued or
issuable with respect to any other Equity Securities acquired pursuant to Section 3.1 upon
conversion or exercise of any security directly or indirectly convertible into or exchangeable or
exercisable for shares of Common Stock or (iv) any Common Stock issued with respect to any of the
foregoing by way of a stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any particular Investor
Registrable Securities, such securities shall cease to be Investor Registrable Securities when (a)
a Registration Statement with respect to the sale of such securities has

A-4

 

become effective under the Securities Act and such securities have been disposed of in
accordance with the plan of distribution set forth in such Registration Statement, (b) they have
been sold to the public through a broker, dealer, or market maker in compliance with Rule 144 under
the Securities Act, (c) they have been repurchased by the Company or any Subsidiary thereof, (d)
they have been transferred as provided in Section 2.1(b)(ii) hereof (provided, that shares so
transferred shall nonetheless be entitled to piggyback registration rights as provided in Section
4.2 and shall be considered Investor Registrable Securities solely for purposes of participation in
such a Piggyback Registration), (e) they have been transferred as contemplated by clause (1) of
Section 2.1(b) hereof or by Section 2.1(c)(v) hereof, (f) in the case of a holder which is a
limited partnership or limited liability company, unless such holder otherwise elects, when they
have been distributed to the partners or members of such holder, (g) they have been otherwise
transferred, new certificates for them not bearing a legend restricting further transfer shall have
been delivered by the Company and subsequent public distribution of them shall not require
registration under the Securities Act, or (h) all of such securities held by an Investor may be
sold without volume or manner of sale restrictions pursuant to Rule 144 under the Securities Act;
provided, that nothing in this sentence shall be deemed to permit any Transfer of any Common Stock
or other Equity Security other than in full compliance with Section 2.1 hereof. For purposes of
this Agreement, a Person shall be deemed to be a holder of Investor Registrable Securities, and the
Investor Registrable Securities shall be deemed to be in existence, whenever such Person has the
right to acquire directly or indirectly such Investor Registrable Securities (upon conversion or
exercise in connection with a transfer of securities or otherwise, but disregarding any
restrictions or limitations upon the exercise of such right), whether or not such acquisition has
actually been effected, and such Person shall be entitled to exercise the rights of a holder of
Investor Registrable Securities hereunder.

     “Liquidation Proceeding” means any liquidation, dissolution or winding up of the Company or
any of its Subsidiaries or the commencement of proceedings to adjudicate the Company or any of its
Subsidiaries as bankrupt, or consenting to the filing of a bankruptcy proceeding against any of
them, or filing a petition or answer or consent seeking reorganization of any of them under any
bankruptcy or insolvency law, or consenting to the filing of any such petition, or consenting to
the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency, or
making an assignment for the benefit of creditors, or admitting inability to pay debts generally as
they become due.

     “Material Adverse Change” means (i) any general suspension of trading in, or limitation on
prices for, securities on any national securities exchange or in the over-the-counter market in the
United States; (ii) the declaration of a banking moratorium or any suspension of payments in
respect of banks in the United States; (iii) a material outbreak or escalation of armed hostilities
or other international or national calamity involving the United States or the declaration by the
United States of a national emergency or war; and (iv) any event, change, circumstance or effect
that is or is reasonably likely to be materially adverse to the business, properties, assets,
liabilities, financial condition, operations or results of operations of the Company and its
subsidiaries taken as a whole.

     “Offering” means (i) a firm commitment underwritten public offering of shares of Common Stock
by the Company, or (ii) any offering or sale of Common Stock or of Equity Securities convertible
into, or exchangeable or exercisable for, Common Stock by the Company

A-5

 

conducted primarily for financing purposes (and expressly excluding offers or sales of Common
Stock or other Equity Securities offered or issued (A) to directors, officers or employees of the
Company or its Subsidiaries (excluding the Investor or any of its Affiliates) pursuant to incentive
compensation plans or similar arrangements approved by the Board, or (B) in connection with any
stock split, stock consolidation or stock dividend or any recapitalization in which all of the
Company’s stockholders are treated in the same manner and which does not affect the percentage of
the outstanding shares owned by the Investor, or (C) in any merger, consolidation or business
combination approved by the Board, or (D) as consideration for the purchase of any assets or
securities of any other Person, in a transaction approved by the Board).

     “Other Registrable Securities” means the Common Stock issued or issuable upon the exercise,
conversion or exchange of all Equity Securities subject to any contractual or other right of
registration with the Company, excepting such Equity Securities as are unvested, subject to
repurchase by the Company or otherwise not then exercisable, convertible or exchangeable into
Common Stock.

     “Own” and “Ownership” shall mean, with respect to any Person and any Series B Shares, that
such Person is the record owner of such Series B Shares.

     “PE Investor” shall mean any entity that is commonly referred to as a “private equity fund” or
a “venture capital firm”. This definition is intended to apply to any entity that (i) qualifies
under an exclusion from the definition of “investment company” under Section 3(c)(1) or 3(c)(7) of
the Investment Company Act of 1940, (ii) is intended to be of limited duration and (iii) is
primarily in the business of using capital to purchase assets, businesses or securities with the
intention of profiting (or enabling its general or limited partners, members or shareholders to
profit) from the resale of such assets, businesses or securities or, in the case of non-controlling
investments, from distributions from entities in which such non-controlling investments are made).

     “Permitted Transferee” means the Company or any of its Subsidiaries or any First Tier
Affiliate of the Investor that is not a Company Competitor. In the event that any First Tier
Affiliate of the Investor, subsequent to a Transfer hereunder, ceases to be a Permitted Transferee
(any such cessation, a “Disqualifying Event”), such Disqualifying Event shall be considered a
Transfer and shall be subject to the terms hereof with respect thereto, including Section 2.1. If
such Transfer fails to comply with the provisions of Section 2.1, such Person that shall have
ceased to be a First Tier Affiliate as a result of such Disqualifying Event shall cease to be
considered an Investor or Permitted Transferee for any purpose hereunder, but for all purposes of
Sections 1.3, 1.5, 2.1 and 3.2, such Person shall continue to be bound by the provisions of this
Agreement as an Investor.

     “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, governmental authority or other entity.

     “Preferred Stock” means the shares of preferred stock, par value $0.001 per share, of the
Company and any securities issued in respect thereof, or in substitution therefor, in connection
with any stock split, dividend or combination, or any reclassification, recapitalization, merger,
consolidation, exchange or other similar reorganization.

A-6

 

     “Pro Rata Share” means, for any Investor, such number of Equity Securities (of the same type
as the Equity Securities being sold in the Offering) as shall equal the product obtained by
multiplying (i) the quotient obtained by dividing (A) the number of shares of Common Stock (on an
as converted basis) Beneficially Owned by such Investor, by (B) the number of Diluted Common Shares
Outstanding as of the most recent practicable date prior to the Offering, by (ii) the aggregate
number of such Equity Securities being sold in the Offering.

     “Public Offering” means a public offering of shares of Common Stock pursuant to an effective
registration statement (other than a registration statement on Form S-8 or Form S-4, or their
successors, or any other form for a similar limited purpose) under the Securities Act that meets
the requirements of Section 2.1(c)(iii).

     “Registrable Securities” means the Investor Registrable Securities and Other Registrable
Securities.

     “Registration Statement” shall mean any registration statement filed by the Company with the
SEC for a Public Offering under the Securities Act (other than a registration statement on Form S-8
or Form S-4, or their successors, or any other form for a similar limited purpose) and all
amendments and supplements to any such Registration Statement, including pre- and post-effective
amendments, in each case including the prospectus contained therein, all exhibits thereto and all
material incorporated by reference (or deemed to be incorporated by reference) therein.

     “Right to Maintain Period” means the period beginning on the Agreement Date and ending upon
the earliest to occur of (i) the first date on which the Investor (or one of its Affiliates) ceases
to own the Series B Share, (ii) the first date on which the Investor and its Affiliates
collectively own less than eleven percent (11%) of the outstanding Voting Stock, and (iii) a Change
of Control.

     “Rights Agreement” means the Amended and Restated Rights Agreement between the Company and
Mellon Investor Services, LLC, as Rights Agent dated as of July 23, 2008, as amended from time to
time.

     “SEC” means the U.S. Securities and Exchange Commission or any other federal agency then
administering the Securities Act or the Exchange Act and other federal securities laws.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     “Standstill Limit” shall mean, at any time and with respect to any contemplated acquisition of
Equity Securities by the Investor or any of its Affiliates, a number of shares of Common Stock
equal to the product of (x) the Investor Maximum Ownership Percentage at such time and (y) the
number of outstanding shares of Common Stock.

     “Strategic Investor” means, with respect to the Company, a Person that (whether directly or
through one or more Subsidiaries) (a) conducts business in the same industry as that in which the
Company conducts business (or in an industry functionally related to the industry in which the
Company conducts business), or (b) develops, manufactures, licenses or sells products,

A-7

 

services or technology that are of relevance to, or are reasonably likely in the future to be
of relevance with respect to, a strategic transaction involving the purchase of equity securities
of the Company, in each case whether or not such purchases or equity securities are registered
under the Securities Act; provided that the term “Strategic Investor” shall not include any PE
Investor.

     “Subsidiary” means, with respect to any Person, each and all corporations, partnerships,
limited liability companies, limited liability partnerships, joint ventures or other entities (A)
of which such Person owns (directly or indirectly, beneficially or of record) at least a fifty
percent (50%) equity, beneficial or financial interest; (B) of which such Person owns (directly or
indirectly, beneficially or of record) an amount of voting securities of other interests sufficient
to enable such Person to elect at least a majority of the members of such entity’s board of
directors or other governing body; or (C) that is otherwise, directly or indirectly, controlled by
such Person.

     “Superior Proposal” means a bona fide written proposal with respect to a Change of Control
transaction by a third party that is determined by Board, in its good faith judgment, after
consultation with a financial advisor of nationally recognized reputation, and after taking into
account the likelihood and anticipated timing of consummation and all legal, financial and
regulatory aspects of the offer and the Person making the offer, to be more favorable from a
financial point of view to the Company’s stockholders than a transaction proposed by the Investor
under Section 3.2(d).

     “13D Group” means any group of Persons formed for the purpose of acquiring, holding, voting or
disposing of Equity Securities which would be required under Section 13(d) of the Exchange Act, and
the rules and regulations promulgated thereunder, to file a statement on Schedule 13D (a “Schedule
13D”) pursuant to Rule 13d-1(a) of the rules and regulations promulgated under the Exchange Act or
a Schedule 13G of the rules and regulations promulgated under the Exchange Act pursuant to Rule
13d-1(c) of the rules and regulations promulgated under the Exchange Act with the SEC as a “person”
within the meaning of Section 13(d)(3) of the Exchange Act if such group Beneficially Owns Equity
Securities representing more than five percent (5%) of any class of Equity Securities then
outstanding.

     “Transfer” means, directly or indirectly, to sell, transfer, assign, pledge, encumber,
hypothecate or similarly dispose of, either voluntarily or involuntarily, or to enter into any
contract, option or other arrangement or understanding with respect to the sale, transfer,
assignment, pledge, encumbrance, hypothecation or similar disposition of, any Common Stock or
Series B Shares Beneficially Owned by a Person or any interest (including any Economic Rights or
Voting Rights) in any Common Stock or Series B Shares Beneficially Owned by a Person, and any
transaction which would have the same effect, or any swap, hedge or other arrangement that
transfers, in whole or in part, any economic consequences of ownership of any Common Stock, whether
any such aforementioned transaction is to be settled by delivery of Common Stock or other
securities, in cash or otherwise,. “Transferred” shall have the correlative meaning.

     “Transferee” means any Person to whom any Investor or any Permitted Transferee or any
Transferee thereof Transfers Equity Securities of the Company in accordance with the terms hereof.

A-8

 

     “Underwritten Registration” or “Underwritten Offering” shall mean a sale of securities of the
Company to an underwriter for reoffering to the public pursuant to an effective Registration
Statement.

     “U.S. GAAP” means United States generally accepted accounting principles.

     “U.S. GAAS” means United States generally accepted auditing standards.

     “Voting Rights” means any rights to vote, or cause or direct any other Person to vote, any
shares of Common Stock, whether conditional or unconditional, and whether limited to specified
matters or generally.

     “Voting Stock” means any Equity Securities of the Company or its successor having the power to
vote in the election of At-Large Directors or members of the board of directors of the Company’s
successor (including voting in accordance with Section 1.3 hereof), including, without limitation,
all shares of Common Stock.

A-9exv10w11

Exhibit 10.11

MANAGEMENT SERVICES AGREEMENT

     This Management Services Agreement (this “Agreement”) is made and entered into this 19
day of October 2006, by and between Ashmore Energy International Limited, a Cayman Islands exempted
company (“AEI”) and Ashmore Investment Management Limited, a company formed under the laws
of England and Wales (“AIML” or the “Provider”). AEI and AIML are referred to
herein individually as a “Party”, and collectively as the “Parties”.

W I T N E S S E T H:

     WHEREAS, AEI owns significant direct or indirect stakes in power companies;

     WHEREAS, AEI wishes to retain AIML to provide certain services to the Companies (as defined in
Section 2.03);

     NOW THEREFORE, in consideration of the premises and the agreements contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

ARTICLE I

APPOINTMENT OF THE PROVIDER

     Section 1.01 The Recipient hereby appoints the Provider to act upon the terms herein contained
until its appointment shall be terminated as hereinafter provided and the Provider hereby accepts
such appointment and agrees to assume the obligations set forth herein.

ARTICLE II

SERVICES TO BE PROVIDED

     Section 2.01 Management Services to be Provided to the Recipient. On the terms and
subject to the conditions set forth herein, and subject to the overall direction and supervision of
AEI, the Provider will provide, or cause to be provided, to the Companies during the Term of this
Agreement such of the services set forth on Schedule I (such services being the
“Management Services”) as may be reasonably requested from time to time by the Recipient
and consented to by the Provider. The Provider shall provide the Management Services in accordance
with the service standard set out in Article III.

     Section 2.02 Power of Delegation. The Provider shall have full power to delegate or
sub-contract the whole or any part of its functions hereunder to any Person (including, but not
limited to, any Affiliate) provided that, any such delegation or sub-contracting shall not relieve
Provider of any of its obligations under this Agreement; provided further that except with the
consent of the Recipient, the Provider shall not have power to delegate any part of its functions
to any Person (the “Appointee”) who is for the time being resident for tax purposes in any
jurisdiction where the delegation of such functions would result in the Recipient becoming liable
to pay any taxes in any jurisdiction (other than the place of its domicile) in which the Recipient
would not otherwise be liable to pay taxes and in the event of an Appointee to whom any part of the
Provider’s functions shall have been delegated becoming or being deemed by the appropriate taxing
authority to become so resident in such a jurisdiction the Provider shall upon becoming aware
thereof take immediate steps to withdraw from such Appointee any authority so delegated. Any
delegation or sub-contracting by the Provider pursuant to this Section 2.02 shall be upon
reasonable advance notice to the Recipient and subject to the Recipient’s approval.

 

 

     Section 2.03 Certain Definitions. For purposes of this Agreement, the following terms
shall have the meanings specified in this Section 2.03:

     “Action” means any action, suit, arbitration, inquiry, proceeding or investigation by
or before any Governmental Authority of any nature, civil, criminal, regulatory or otherwise, in
law or in equity.

     “Affiliate” (and, with a correlative meaning “affiliated”) means solely for
purposes of this Agreement, with respect to any Person, any direct or indirect subsidiary of such
Person, and any other Person that directly, or through one or more intermediaries, controls or is
controlled by or is under common control with such first Person; provided, that, that for
purposes of clarification, for purposes of this Agreement, AEI and AIML shall not be deemed to be
Affiliates of one another. As used in this definition, “control” (including with
correlative meanings, “controlled by” and “under common control with”) means
possession, directly or indirectly, of power to direct or cause the direction of management or
policies (whether through ownership of securities or partnership or other ownership interests, by
contract or otherwise).

     “Applicable Law” means, with respect to any Person, any Law applicable to such Person
or its business, properties or assets.

     “Business Day” means a day (other than Saturday or Sunday) on which commercial banks
are open for business in London and New York City.

     “Companies” means AEI and all of the direct or indirect subsidiaries (wholly owned or
otherwise) of AEI.

     “Confidential Information” means non-public information about the disclosing Party’s
or any of its Affiliates’ businesses or activities that is proprietary and confidential, which
shall include, without limitation, all business, financial, technical and other information of the
disclosing Party or its Affiliates that is marked or designated “confidential” or “proprietary” or
that by its nature or the circumstances surrounding its disclosure should reasonably be regarded as
confidential or proprietary. Confidential Information includes not only written or other tangible
information, but also information transferred orally, visually, electronically or by any other
means. Confidential Information shall not include information that (i) is in or enters the public
domain without breach of this Agreement, (ii) the receiving Party lawfully receives from a third
party without restriction on disclosure and, to the receiving Party’s knowledge, without breach of
a nondisclosure obligation, or (iii) is independently developed by the receiving Party.

     “Governmental Authority” means any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, including any governmental
authority, independent or autonomous official authority, agency, department, board, commission or
instrumentality of the United States or any other country, or any political subdivision thereof,
whether federal, state or local, and any tribunal, court or arbitrator(s) of competent
jurisdiction.

     “Law” means any foreign, federal, state or local law, statute, code, ordinance, rule,
regulation or other requirement enacted, promulgated, issued or entered by any Governmental
Authority.

     “Person” means and includes natural persons, corporations, limited partnerships,
limited liability companies, general partnerships, joint stock companies, joint ventures,
associations, companies, trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and all Governmental Authorities.

- 2 -

 

     “Recipient” means any Company in its capacity as a recipient of Management Services
from the Provider.

ARTICLE III

SERVICE STANDARD

     Section 3.01 Standard of Care; Limited Warranty. The Management Services shall be
performed with at least the same level of skill, diligence, prudence and quality as the Provider
utilizes in performing similar services within its own operations. THE PRECEDING IS THE ONLY
WARRANTY CONCERNING THE MANAGEMENT SERVICES AND ANY RESULTS, WORK PRODUCT OR PRODUCTS RELATED
THERETO, AND IS MADE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES AND REPRESENTATIONS EXPRESSED OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY OR NONINFRINGEMENT. THE PARTIES UNDERSTAND, ACKNOWLEDGE AND AGREE THAT THE LEVEL
OF COMPENSATION THE PARTIES HAVE AGREED TO ACCEPT IS PREDICATED ON THIS LIMITATION OF LIABILITY AND
DISCLAIMER OF WARRANTIES.

     Section 3.02 Consequences of Breach or Non-Performance. The Recipient shall promptly
notify the Provider of any failure by the Provider to perform one or more of the Management
Services in accordance with the terms of this Agreement. In the event that the Provider (a) does
not cure such non-performance within ten (10) Business Days of the receipt of such notice (the
“Cure Period”), or (b) has not performed a particular Management Service in accordance with
the terms of this Agreement for thirty (30) Business Days in the aggregate, then the Recipient may
terminate such Management Service(s) by delivering notice to the Provider. Upon such termination,
neither the Recipient nor the Provider shall have any further obligations hereunder (except that
the Provider shall continue to be entitled to payment of fees as provided in Section 5.01 and to
reimbursement of costs as provided in Section 5.02, and the provisions of this Section 3.02 and
Articles VI and IX shall survive). No termination of this Agreement as herein provided shall
relieve any Party of any liability it may have for any breach of its obligations hereunder.

     Section 3.03 Relationship of Parties. It is understood and agreed that in providing
the Management Services and otherwise in connection with this Agreement, the Provider is an
independent contractor and is not, and shall not hold itself out as, an agent, employee or legal
representative of the Recipient or any of its Affiliates or otherwise as having power or authority
to bind the Recipient or any of its Affiliates in any manner.

ARTICLE IV

TERM

     Section 4.01 Term. The appointment of the Provider shall, subject as herein provided,
be for an initial term of one year (the “Initial Term”) and shall automatically be renewed
for further successive terms of one year thereafter (each, a “Renewal Period”) unless
either Party provides not less than thirty (30) days’ notice in writing to the other Party of its
intent not to renew this Agreement, in which event this Agreement shall expire on the last day of
the Initial Term or the last day of the then current Renewal Period as applicable (the Initial Term
and all Renewal Periods, collectively, the “Term”).

     Section 4.02 Termination. A Party may not terminate this Agreement during the Term
except under the following circumstances:

- 3 -

 

          (a) The Recipient and the Provider may terminate any Management Service, all Management
Services with respect to one or more Companies, or this Agreement by the execution of a written
agreement signed by authorized representatives of both such Parties, in which event the termination
shall be effective on the date specified in such agreement.

          (b) The Recipient shall be permitted to terminate any Management Service, all Management
Services with respect to one or more Companies, or this Agreement upon written notice to the
Provider, in which event the termination shall be effective on the date that is ninety (90) days
after the Provider receives such notice; provided, that in the event of a sale or other transfer of
one or more Companies to a third party, such notice period with respect to such Company or
Companies shall be reduced to fourteen (14) days.

          (c) The Provider shall be permitted to terminate any Management Service in the event the
Recipient fails to pay the Provider’s invoice for such Management Service within sixty (60) days of
the invoice date, in which event the termination shall be effective on the date on which the
Recipient receives notice from the Provider of such termination.

          (d) The Recipient shall be permitted to terminate any Management Service pursuant to
Section 3.02, in which event the termination shall be effective on the date on which the Provider
receives notice of termination pursuant to Section 3.02 hereof.

ARTICLE V

BILLING AND PAYMENT

     Section 5.01 Effect of Discontinuance of Purchase of Services. If the purchase of a
Management Service is terminated pursuant to Section 3.02 or 4.02 hereof, the Provider shall, upon
the effective date of such termination, as set forth in Section 3.02 or 4.02 hereof, as applicable,
of that Management Service, discontinue billing the Recipient for any fees for such Management
Service; provided, however, that the Recipient will be obligated to pay for Management Services
received up to and through the effective date of termination of such Management Service.

     Section 5.02 Rates and Reimbursable Expenses.

          (a) The Provider shall charge the Recipient for the cost of its employees performing the
Management Services.

          (b) The Recipient shall be charged for and shall reimburse the Provider for all reasonable and
documented expenses incurred by the Provider in providing the Management Services including, but
not limited to, employee-related travel and lodging costs and the actual cost of goods and
services, including but not limited to, third party professional service fees such as accounting,
legal, technical and environmental, health and safety services purchased by the Provider in
providing the Management Services.

     Section 5.03 Invoices. Charges for Management Services to be performed by the Provider
under this Agreement (other than for reimbursable expenses) shall be invoiced to the Recipient by
the Provider on or before the seventh business day prior to each payroll date for Provider.
Invoices for reimbursement of expenses as set forth in Section 5.02 hereof shall be delivered
monthly to the Recipient by the Provider. Invoices shall contain sufficient detail to permit the
Recipient to determine the basis for the charges and the specific services to which the billed
amounts relate. The Recipient shall pay all invoices by wire transfer or other means of immediate
payment, on or before the 30th day after receipt of

- 4 -

 

each invoice without setoff or deduction of any kind, except as provided in Section 5.04. Any
payment by the Recipient made more than 

forty-five (45) days after the Recipient is invoiced shall
incur a late fee of ten percent (10%) per annum, calculated from and after the expiration of such
forty-five (45) day period until the date of payment.

     Section 5.04 Disputed Amounts. In the event that a good-faith dispute arises as to
the amount of any statement or invoice or any portions thereof submitted by the Provider to the
Recipient pursuant to this Article V, the Recipient may withhold all disputed amounts on such
invoice or statement but shall pay all charges on such invoice or statement that are not disputed.
The Recipient shall promptly notify the Provider in writing of such disputed amounts and the
reasons each such charge is disputed by the Provider. The Provider shall provide the Recipient
sufficient records relating to the disputed charge so as to enable the Parties to resolve the
dispute. In the event the determination is that the Recipient should have paid the disputed
amount, the Recipient shall pay the disputed amount to the Provider, with interest on the disputed
amount at a rate of ten percent (10%) per annum, calculated from and after the forty-five (45) days
following the date of such invoice until the date of payment.

ARTICLE VI

LIMITATION OF LIABILITY AND INDEMNITIES

     Section 6.01 Provider’s Limitation of Liability. The Recipient agrees that the
Provider shall not be liable for, and hereby releases the Provider and its Affiliates, and each
officer, director, employee, agent, representative, permitted successor and assign of the Provider
and/or any of its Affiliates from any loss, liability, cost, expense, penalty, damage, claim or
cause of action (the “Liabilities”) arising from any act or omission of the Provider in
connection with the Management Services. In no event shall any Party (or its Affiliates) be liable
to any other Party (or its Affiliates) for any consequential, exemplary, special, incidental or
punitive damages or expenses (including, without limit, lost data, profits, revenues, income or
savings, cost of capital or loss of business reputation or opportunity) arising from this Agreement
or any breach thereof or breach of warranty or error in the performance of the Management Services
regardless of the fault or negligence (whether sole, joint or concurrent, active or passive) of a
Party or its Affiliates even if the other Party has been advised of the possibility of the
occurrence of such damages. The Recipient, by its acceptance of any Management Services
acknowledges and agrees that the level of compensation the Provider has agreed to accept is
predicated on this limitation of liability and disclaimer of warranties.

     Section 6.02 Recipient’s Indemnification.

          (a) The Recipient (the “Indemnifying Party”), at its expense, agrees to defend,
protect, release, indemnify, and hold harmless the Provider and any of its Affiliates, and each
officer, director, employee, agent, representative, permitted successor and assign of the Provider
and/or any of its Affiliates (the “Provider Indemnified Parties”) from and against any and
all claims, liabilities, losses, damages, awards and judgments incurred by a Provider Indemnified
Party (including reasonable and documented fees and disbursements of the respective Provider
Indemnified Party and such Provider Indemnified Party’s counsel relating thereto) which arise out
of, or result from, the Management Services provided under this Agreement, including actions taken
or omitted to be taken by the Provider Indemnified Party on behalf of the Recipient prior to the
date hereof (“Losses”), other than for any Losses arising as a result of the gross
negligence or wilful misconduct of any Provider Indemnified Party.

          (b) Any Provider Indemnified Party seeking indemnification shall give the Indemnifying Party
reasonably prompt notice of any claim for which it is seeking indemnification pursuant to this

- 5 -

 

Article VI. An Indemnifying Party’s obligations under this Section 6.02 shall survive even if
a Provider Indemnified Party does not provide such Indemnifying Party with reasonably prompt notice
of any such claim, so long as such failure does not materially prejudice such Indemnifying Party.

          (c) The foregoing right to indemnity shall be in addition to any rights that the Provider
and/or any other Provider Indemnified Party may have at common law or otherwise and shall remain in
full force and effect following the completion or any termination of the engagement. The Recipient
hereby consents to personal jurisdiction and to service and venue in any court in which any claim
which is subject to this agreement is brought against the Provider or any other Provider
Indemnified Party.

          (d) It is understood that, in connection with the Provider’s engagement, the Provider may also
be engaged to act for the Recipient in one or more additional capacities, and that the terms of
this engagement or any such additional engagement may be embodied in one or more separate written
agreements. This indemnification shall apply to the engagement specified in this Agreement as well
as to any such additional engagement(s) (whether written or oral) and any modification of said
engagement or such additional engagement(s) and shall remain in full force and effect following the
completion or termination of said engagement or such additional engagements.

          (e) For the avoidance of doubt, no Company, other than AEI, shall have any liability under
this Section 6.02 to any Provider Indemnified Party for any indemnity obligation under this
Agreement.

     Section 6.03 Defense of Claims. Subject to the provisions of Section 6.02(f), it is
understood and agreed by the Indemnifying Party that in the event a Provider Indemnified Party is
made a defendant in any Action for which it is indemnified pursuant to this Agreement, and the
Indemnifying Party fails or refuses to assume the defense thereof, after having been notified by
the Provider Indemnified Party to do so, that the Provider Indemnified Party may compromise and
settle or defend any such claim, and the Indemnifying Party shall be bound and obligated to
reimburse the Provider Indemnified Party for the amount expended by the Provider Indemnified Party
in settling and compromising any such claim, or for the amount expended by the Provider Indemnified
Party in paying any judgment rendered therein, together with all reasonable attorneys’ fees
incurred by the Provider Indemnified Party for defense or settlement of such claim. Subject to the
limitation set forth in Section 6.02(f) hereof, any judgment rendered against a Provider
Indemnified Party or amount expended by a Provider Indemnified Party in compromising or settling
such claim shall be conclusive as determining the amount for which the Indemnifying Party is liable
to reimburse the Provider Indemnified Party hereunder.

ARTICLE VII

FORCE MAJEURE

     Section 7.01 Force Majeure. Subject to the standards set forth in Article III, if, by
reason of force majeure, the Provider is rendered unable, wholly or in part, to carry out its
obligations under this Agreement, and if the Provider gives notice and reasonable particulars of
such force majeure to the Recipient within a reasonable time after the occurrence of the cause
relied on, upon giving such notice, so far as and to the extent that it is affected by such force
majeure, the Provider shall not be liable solely on account of such inability to perform during the
continuance of any inability so caused; provided, however, the Provider shall use
commercially reasonable efforts to recommence performance of the affected services.

     Section 7.02 Definition of Force Majeure. The term “force majeure” as employed in
this Agreement shall mean acts of God; strikes, lockouts or industrial disputes or disturbances;
civil

- 6 -

 

disturbances; arrests and restraints from rulers of people; interruptions by government,
administrative agency or court orders, other than as a result of a failure to comply with laws;
present and future valid orders, decisions or rulings of any governmental or administrative entity
having proper jurisdiction; acts of a public enemy; wars; riots; blockades; insurrections;
inability to secure materials by reason of allocations promulgated by authorized governmental
agencies; epidemics; landslides; lightning; earthquakes; fire; storm; floods; washouts; whether of
the kind herein enumerated or otherwise, not reasonably within the control of the Provider and not
caused, in whole or in part, by the acts or omissions of the Provider.

ARTICLE VIII

NOTICES AND REPORTS

     Section 8.01 Notices. All notices and other communications under this Agreement shall
be in writing and shall be deemed duly given (i) when delivered personally or by prepaid overnight
courier, with a record of receipt, (ii) the fourth day after mailing if mailed by certified mail,
return receipt requested, or (iii) the day of transmission, if sent by facsimile or telecopy during
regular business hours, or the day after transmission, if sent after regular business hours (with a
copy promptly sent by prepaid overnight courier with record of receipt or by certified mail, return
receipt requested), to the Parties at the following addresses or telecopy numbers (or to such other
address or telecopy number as a Party may have specified by notice given to the other Party
pursuant to this provision):

     If to AEI, to:

Ashmore Energy International Limited

c/o International Management Services Limited

Harbour Centre, 4th Floor

North Church Street

P.O. Box 61GT

George Town, Grand Cayman

Cayman Islands

Attention: Director

Facsimile: +1 345 949 8635

     If to AIML, to:

Ashmore Investment Management Limited

20 Bedfordbury

London

WC2N 4BL

United Kingdom

Attention: General Counsel

Facsimile: +44 20 7557 4141

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ARTICLE IX

MISCELLANEOUS

     Section 9.01 Confidentiality.

          (a) Nondisclosure. Each of the Parties agrees that (i) it will not, and will cause
each of its Affiliates receiving or providing Management Services not to, disclose to any third
party or use any Confidential Information disclosed hereunder to such Person, except as expressly
permitted in this Agreement or in the exercise of its rights and obligations hereunder, and (ii) it
will take reasonable measures to maintain the confidentiality of all Confidential Information of
the other Party in its or its Affiliates’ possession or control, which will in no event be less
than the measures it uses to maintain the confidentiality of its own information of similar type
and importance.

          (b) Permitted Disclosure. Notwithstanding the foregoing, each of the Parties may
disclose Confidential Information of any other Party (i) to the extent required by a court of
competent jurisdiction or other Governmental Authority or otherwise as required by Law, provided
that such Party has given such other Party reasonable prior notice of such requirement when legally
permissible and to the extent reasonably possible to permit such other Party to take such legal
action to prevent the disclosure as it deems reasonable, appropriate or necessary, or (ii) to its
or its Affiliates’ employees, agents, representatives, legal counsel, auditors, accountants and
advisors; provided, however, that such persons shall be specifically informed of
the confidential nature of such Confidential Information and that by receiving such information
they are agreeing to be bound by the terms of this Agreement relating to the confidential treatment
of such Confidential Information.

          (c) Ownership of Confidential Information. All Confidential Information disclosed
hereunder shall be and shall remain the sole and exclusive property of the disclosing party.

     Section 9.02 Applicable Law. THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT, AND ANY CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED ON
CONTRACT, TORT, OR ANY OTHER THEORY), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, SHALL IN ALL RESPECTS BE GOVERNED BY AND INTERPRETED, CONSTRUED, AND DETERMINED IN
ACCORDANCE WITH, THE APPLICABLE PROVISIONS OF THE STATE OF NEW YORK.

     Section 9.03 Waiver. The performance of or compliance with a Party’s obligations
hereunder may be waived, but only in writing signed by an authorized representative of the other
Party. No waiver or failure of enforcement by any Party of any default by any other Party in the
performance of any provision, condition or requirement herein shall be deemed to be a waiver of, or
in any manner a release of the defaulting Party from, performance of any other provision, condition
or requirement herein, nor deemed to be a waiver of, or in any manner a release of the defaulting
Party from, future performance of the same provision, condition or requirement; nor shall any delay
or omission of any non-defaulting Party to exercise any right hereunder in any manner impair the
exercise of any such right or any like right accruing to it thereafter.

     Section 9.04 Modification. This Agreement may not be modified, varied or amended
except by an instrument in writing signed by the Parties.

- 8 -

 

     Section 9.05 Headings. The headings to each of the various Articles and Sections in
this Agreement are included for convenience and reference only and shall have no effect on, or be
deemed as part of the text of, this Agreement.

     Section 9.06 Third Parties. Except as provided in Article VI hereof (with respect to
Provider Indemnified Parties), this Agreement is not intended to confer upon any Person not a Party
hereto (other than the Recipient) any rights or remedies hereunder, and no Person other than the
Parties hereto (and the Recipient) is entitled to rely on or enforce any representation, warranty
or covenant contained herein.

     Section 9.07 Survival; Limitations Period. Notwithstanding any other provisions in
this Agreement, all indemnity, limitation of liability and payment obligations set forth in this
Agreement shall survive the termination or expiration of this Agreement, in whole or in part. NO
PARTY MAY ASSERT ANY CAUSE OF ACTION AGAINST ANY OTHER PARTY ARISING UNDER OR IN CONNECTION WITH
THIS AGREEMENT MORE THAN SIX (6) MONTHS AFTER THE EXPIRATION OF THE TERM.

     Section 9.08 Binding Effect; Assignment.

          (a) Subject to Section 2.02 and paragraphs (b) and (c) below, no Party hereto may assign this
Agreement, in whole or in part, except with the prior written approval of each other Party, which
approval shall not be unreasonably withheld. This Agreement shall inure to the benefit of, and
shall be binding upon, the Parties and their respective successors and permitted assigns.

          (b) A Party may assign this Agreement to any successor in interest of such Party of all or
substantially all of the assets of such Party.

          (c) The Recipient may make a collateral assignment of its rights under this Agreement to any
lender to the Recipient or its Affiliates without the consent of the other Parties, so long as such
assignment shall not relieve the Recipient of its obligations hereunder.

     Section 9.09 Entire Agreement. This Agreement, including any exhibits, attachments
and schedules hereto, constitutes the entire agreement between the Parties concerning the subject
matter hereof, and same supersedes any prior understandings or written or oral agreements relative
to said matter.

     Section 9.10 Submission to Jurisdiction; Consent to Service of Process.

          (a) Each Party hereby agrees to unconditionally and irrevocably submit to the exclusive
jurisdiction of the United States District Court for the Southern District of New York sitting in
New York County or the Commercial Division, Civil Branch of the Supreme Court of the State of New
York sitting in New York County and any appellate court from any thereof, for the resolution of any
Action arising out of or relating to this Agreement or any of the transactions contemplated hereby,
and agrees that any such Action shall be brought only in such court.

          (b) Each Party hereby unconditionally and irrevocably waives, to the fullest extent permitted
by Applicable Law, any objection which they may now or hereafter have to the laying of venue of any
Action arising out of or relating to this Agreement or any of the transactions contemplated hereby
brought in any court specified in paragraph (a) above, or any defense of inconvenient forum for the
maintenance of such Action. Each of the Parties hereto agrees that a judgment in any such dispute
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law.

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          (c) Each of the Parties hereto hereby consents to process being served by any Party to this
Agreement in any Action by the mailing of a copy thereof in accordance with the provisions of
Section 8.01

     Section 9.11 Waiver of Jury Trial. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT THEY MAY HAVE TO TRIAL BY
JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED
ON CONTRACT, TORT, OR ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT,
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTIES
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 9.12 No Strict Construction. The Parties to this Agreement have participated
jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises with respect to this Agreement, this Agreement shall be
construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise
favoring or disfavoring a Party by virtue of the authorship of any of the provisions of this
Agreement.

     Section 9.13 Severability. If any provision of this Agreement is invalid or
unenforceable, the balance of this Agreement shall remain in effect.

     Section 9.14 Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which together will constitute
one and the same instrument.

     Section 9.15 Construction and Interpretation. All references herein to agreements and
other contractual instruments shall be deemed to include all exhibits, attachments and appendices
attached thereto and all amendments and other modifications to such agreements and instruments.
Words used herein in the singular, where the context so permits, shall also apply to words when
used in the plural and vice versa. The term “including” when used in the Agreement will be by way
of example and not considered in any way to be a limitation, and means “including, without
limitation”.

     Section 9.16 Recipient’s Action. Any action required or permitted hereunder to be
taken by the Recipient, including, without limitation, the billing and payment provisions set forth
in Article V, shall be taken by AEI on behalf of itself and its Affiliates. All actions taken by
AEI hereunder shall be binding on its respective Affiliates and the Provider shall have the right
to rely on all such actions. In addition, each Affiliate of AEI, by accepting any Management
Services provided by a Provider, shall be deemed to have agreed to the provisions hereof,
including, without limitation the services standard provided in Article III, the payment provisions
in Article V and the limitation of liability provisions set forth in Article VI.

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     IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed in multiple originals
by their respective officers thereunto duly authorized, all as of the date first above written.

	 	 	 	 	 
	 	ASHMORE ENERGY INTERNATIONAL LIMITED

 
	 	By:  	/s/ K. George Wasaff
 	 
	 	 	Name:  	K. George Wasaff 	 
	 	 	Title:  	Director 	 
	 
	 	ASHMORE INVESTMENT MANAGEMENT LIMITED

 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SCHEDULE I

MANAGEMENT SERVICES

Provision of operational, administrative and technical services (e.g., services including, but not
limited to, accounting and legal services, internal audit, implementation and compliance,
preparation of financial statements, preparation and filing of tax returns, maintenance and
retention of corporate books and records, advice and services related to business development,
acquisitions and divestitures, transaction and financing structuring, treasury and cash management
services).

Preparation and filing of required materials/filings with any national, state or other regulators.

Provision of board members and authorised signatories (including for bank account management) to
the Recipient and the Companies.

Co-ordination and management of service providers to the Recipient and the Companies.

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