Common use of Shareholder Derivative Actions Clause in Contracts

Shareholder Derivative Actions. a. On February 23, 2012, an additional lawsuit that relates to the above purported shareholder class action was filed. The lawsuit, ▇▇▇ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇. et al., filed in the Superior Court of California, is a shareholder derivative action, purported to be brought by an individual shareholder on behalf of Powerwave, against certain executive officers and the current directors of Powerwave. Powerwave is also named as a nominal defendant. The allegations of the derivative complaint closely resemble those in the class action and pertain to the time period of February 1, 2011 through October 18, 2011. Based on those allegations, the derivative complaint asserts various claims for breach of fiduciary duty under state law. This case has been stayed pending a resolution of the shareholder class action. b. On March 7, 2012, an additional lawsuit that relates to the above purported shareholder class action was filed. The lawsuit, Verar v.