FIFTH AMENDED AND
RESTATED
INVESTORS’ RIGHTS
AGREEMENT
February 9,
2006
FIFTH AMENDED AND
RESTATED
INVESTORS’ RIGHTS
AGREEMENT
THIS FIFTH AMENDED AND RESTATED INVESTORS’
RIGHTS AGREEMENT is made as of the 9 th day of February,
2006, by and among Wintegra, Inc., a Delaware corporation (the
“ Company ”), the investors listed on
Schedule A hereto, each of which is
herein referred to as a “ D-Investor
”, the holders of Series A Preferred Shares listed on
Schedule B hereto, each of which is herein
referred to as an “A-Investor”, the
holders of Series B Preferred Shares listed on Schedule
C hereto, each of which is herein referred to as an
“B-Investor” and the holders of Series
C Preferred Shares listed on Schedule D
hereto, each of which is referred to as a "
C-Investor " (the D-Investors, C-Investors,
B-Investors and the A-Investors shall jointly be referred to as the
“Investors” ) and the holders of
Common Stock listed on Schedule E
hereto, each of whom is herein referred to as a “
Founder .”
RECITALS
WHEREAS, the Company, the Founders, the
C-Investors, the B-Investors and the A-Investors are parties to the
Fourth Amended and Restated Investors’ Rights Agreement dated
January, 2005 (the “ Previous IR Agreement
”); and
WHEREAS, the parties to the Previous IR
Agreement wish to amend and restate the Previous IR Agreement so
that this Agreement shall govern the rights of the Investors and
the Founders to cause the Company to register shares of Common
Stock issued or issuable to them and certain other matters as set
forth herein and shall replace the Previous IR
Agreement;
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS
FOLLOWS:
1.
Registration
Rights . The
Company covenants and agrees as follows:
1.1
Definitions . Capitalized terms used but not defined herein
shall have the meanings assigned to such terms in the Series D
Agreement. For purposes of this Agreement:
(i) The term “ Act ”
means the Securities Act of 1933, as amended.
(ii) The term “ Form S-3
” means such form under the Act as in effect on the date
hereof or any registration form under the Act subsequently adopted
by the SEC that permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company
with the SEC.
(iii) The term “ Holder ”
means any person owning or having the right to acquire Registrable
Securities or any assignee thereof in accordance with
Section 1.11 hereof; provided, however, that the Founders
shall not be deemed to be Holders for purposes of Section 1.2,
1.12 and 1.11.
(iv) The term “ Major Holder
” means a Holder that holds at least 3% of the Registrable
Securities then outstanding; provided however, that each of TI,
CDIB and Grindylow Group Ltd. (“ Grindylow
”) shall each be considered a Major Holder for so long as it
holds at least 2% of the Registrable Securities and further
provided that PMC-Sierra, Inc. (" PMC-Sierra ")
shall be considered a Major Holder for so long as it holds more
than 1.5% of the Registrable Securities.
(v) The term “ Major Investor
” means an Investor that holds at least 3% of the Registrable
Securities then outstanding, provided however, that Grindylow shall
be considered a “Major Investor” for so long as it
holds at least 2% of the Registrable Securities then outstanding
(on an as-converted basis) and further provided that PMC-Sierra
shall be considered a Major Investor for so long as it holds more
than 1.5% of the Registrable Securities then outstanding (on an
as-converted basis).
(vi) The term “ Initial
Offering ” means the Company’s first firm
commitment underwritten public offering of its Common Stock under
the Act.
(vii) The term “ 1934 Act
” means the Securities Exchange Act of 1934, as
amended.
(viii) The term “Common Stock
” means the Company’s Common Stock, par value $0.001
per share.
(ix) The term “ Preferred
Stock ” means the Company’s Series A Preferred
Stock, par value $0.001 per share, the Company’s Series B
Preferred Stock, par value $0.001 per share, the Company’s
Series C Preferred Stock, par value $0.001 per share and the
Company’s Series D Preferred Stock, par value $0.001 per
share (the “ Series D Preferred Stock
”) issued to the Investors, as defined in the Series D
Agreement.
(x) The term “ register
,” “ registered ,” and “
registration ” refer to a registration
effected by preparing and filing a registration statement or
similar document in compliance with the Act, and the declaration or
ordering of effectiveness of such registration statement or
document.
(xi) The term “ Preferred Registrable
Securities ” means (i) the Common Stock
issuable or issued upon conversion of the Preferred Stock,
(ii) any Common Stock of the Company issued as (or issuable
upon the conversion or exercise of any warrant, right or other
security that is issued as) a dividend or other distribution with
respect to, or in exchange for, or in replacement of, the shares
referenced in (i) above, excluding in all cases, however, any
Registrable Securities sold by a person in a transaction in which
his rights under this Section 1 are not assigned.
(xii) The term “ Founder Registrable
Securities ” means (i) Common Stock held by
the Founders as of the date of the signing of this Agreement,
provided, however, that such shares of Common Stock shall not be
deemed Registrable Securities for the purposes of Section 1.2,
1.11 and 1.12 and (ii) any Common Stock of the Company issued
as (or issuable upon the conversion or exercise of any warrant,
right or other security that is issued as) a dividend or other
distribution with respect to, or in exchange for, or in replacement
of, the shares referenced in (i) above, excluding in all cases,
however, any Registrable Securities sold by a Founder in a
transaction in which his rights under this Section 1 are not
assigned.
(xiii) The term “ Registrable
Securities ” means Preferred Registrable Securities
and Founder Registrable Securities.
(xiv) The term “ Merger and
Acquisition " means (A) the acquisition of this
Company by another entity by means of any transaction or series of
related trans-actions (including, without limitation, any
reorganization, merger or consolidation) that results in the
transfer of fifty percent (50%) or more of the outstanding voting
power of this corporation; or (B) a sale of all or
substantially all of the Company’s assets or
shares.
(xv) The number of shares of " Registrable
Securities then outstanding " shall be determined by the
number of Common Stock outstanding, calculated on an as-converted
basis, which are Registrable Securities.
(xvi) “ Permitted Transferee
” means with regards to any shareholder of the Company, any
person or entity, directly or indirectly, that controls or is
controlled by or is under common control with such shareholder, any
corporation wholly owned by such shareholder, the shareholders of
such shareholder, the spouse or member of such shareholder’s
immediate family, or a custodian, trustee (including a trustee of a
voting trust), executor, or other fiduciary for the account of such
shareholder’s spouse or members of such shareholder’s
immediate family, or a trust for such shareholder’s own self,
or a charitable remainder trust, or, if the shareholder is a
partnership, any partner of the partnership or any other
partnership or other entity managed by the same manager, and the
general or limited partners or managing entities of such
shareholder, or any affiliate of such shareholder or partner under
common or related management or control with such shareholder, and
in the case of either Genesis Partners II LDC or Genesis Partners
II (Israel) L.P., either of Genesis Partners I L.P. or Genesis
Partners I (Cayman) L.P., provided that each such transferee or
assignee, prior to the completion of the sale, transfer, or
assignment shall have executed documents assuming the obligations
of such shareholder under this Agreement.
Rights to
transfer shares of the Company to a Permitted Transferee are
intended to facilitate a shareholder's allocation of such
shareholder's shares of the Company among commonly controlled or
similarly situated persons or entities and are not intended to be
used to facilitate a change in control of the Company.
(xvii) “ TI ” means Texas
Instruments Incorporated, a company incorporated under the laws of
the state of Delaware.
1.2
Request for
Registration .
(i) Subject to the conditions of this
Section 1.2, if the Company shall receive within the five (5)
year period commencing 90 days after the effective date of the
Initial Offering a written request from the Holders of at least 35%
of the Preferred Registrable Securities then outstanding (the
“ Initiating Holders ”) that the
Company file a registration statement under the Act covering the
registration of Registrable Securities that requests the
registration of shares in a minimum amount of five million United
States dollars ($5,000,000), then the Company shall, within twenty
(20) days of the receipt thereof, give written notice of such
request to all Holders, and subject to the limitations of this
Section 1.2, use best efforts to effect, as soon as
practicable, the registration under the Act of all Registrable
Securities that the Holders request to be registered in a written
request received by the Company within twenty (20) days of the
mailing of the Company’s notice pursuant to this
Section 1.2(i).
(ii) If the Initiating Holders intend to distribute
the Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as a part of their
request made pursuant to this Section 1.2 and the Company
shall include such information in the written notice referred to in
Section 1.2(i). In such event the right of any Holder to
include its Registrable Securities in such registration shall be
conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable
Securities in the underwriting (unless otherwise mutually agreed by
a majority in interest of the Initiating Holders and such Holder)
to the extent provided herein. All Holders proposing to distribute
their securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by a majority in
interest of the Initiating Holders which underwriter or
underwriters shall be reasonably acceptable to a majority in
interest of the Initiating Holders.
(iii) If the underwriter advises the Company that
marketing factors require a limitation of the number of securities
underwritten (including Registrable Securities), then the Company
shall so advise all Holders of Registrable Securities that would
otherwise be underwritten pursuant hereto, and the number of shares
that may be included in the underwriting shall be allocated to the
Holders of such Registrable Securities on a pro rata basis based on
the number of Registrable Securities held by all such Holders
(including the Initiating Holders). Any Registrable Securities
excluded or withdrawn from such underwriting shall be withdrawn
from the registration.
(iv) The Company shall not be required to effect a
registration pursuant to this Section 1.2:
(a) in any particular jurisdiction in which the
Company would be required to execute a general consent to service
of process in effecting such registration, unless the Company is
already subject to service in such jurisdiction and except as may
be required under the Act; or
(b) after the Company has effected two (2)
registrations pursuant to this Section 1.2, and such
registrations have been declared or ordered effective;
or
(c) during the period starting with the date
sixty (60) days prior to the Company’s good faith
estimate of the date of the filing of, and ending on a date one
hundred eighty (180) days following the effective date of, or,
if earlier, upon completion of the distribution contemplated by, a
Company-initiated registration subject to Section 1.3 below,
provided that the Company is actively employing in good faith all
reasonable efforts to cause such registration statement to become
effective; or
(d) if the Initiating Holders propose to dispose
of Registrable Securities that may be registered on Form S-3
pursuant to Section 1.4 hereof; or
(e) if the Company shall furnish to Holders
requesting a registration statement pursuant to this
Section 1.2, a certificate signed by the Chairman of the Board
stating that in the good faith judgment of the Board of Directors
of the Company, it would be seriously detrimental to the Company
and its shareholders for such registration statement to be effected
at such time, in which event the Company shall have the right to
defer such filing for a period of not more than ninety (90) days
after receipt of the request of the Initiating Holders, provided
that such right to delay a request shall be exercised by the
Company not more than once in any twelve (12)-month
period.
1.3
Company
Registration .
If (but without any obligation to do so) the Company proposes to
register (including for this purpose a registration effected by the
Company for shareholders other than the Holders) any of its stock
or other securities under the Act in connection with the public
offering of such securities (other than: (a) a registration
relating solely to the sale of securities to participants in a
Company stock plan, (b) a registration relating to a corporate
reorganization, merger, acquisition or other transaction under
Rule 145 of the Act, (c) 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 the
Registrable Securities which, for the sake of clarification, shall
not be deemed to include a registration on Form S-3 or any
equivalent form), or (d) a registration in which the only Common
Stock being registered is Common Stock issuable upon conversion of
debt securities that are also being registered), the Company shall,
at such time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder given within
twenty (20) days after mailing of such notice by the Company in
accordance with Section 3.5, the Company shall, subject to the
provisions of Section 1.3(ii), use all reasonable efforts to
cause to be registered under the Act all of the Registrable
Securities that each such Holder has requested to be
registered.
(i)
Right to Terminate
Registration .
The Company shall have the right to terminate or withdraw any
registration initiated by it under this Section 1.3 prior to
the effectiveness of such registration whether or not any Holder
has elected to include securities in such registration. The
expenses of such withdrawn registration shall be borne by the
Company in accordance with Section 1.7 hereof.
(ii)
Underwriting
Requirements .
In connection with any offering involving an underwriting of shares
of the Company’s capital stock, the Company shall not be
required under this Section 1.3 to include any of the
Holders’ securities in such underwriting unless they accept
the terms of the underwriting, in customary form, as agreed upon
between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters) and enter into
an underwriting agreement in customary form with an underwriter or
underwriters selected by the Company and approved by majority in
interest of holders of Preferred Registrable Securities, and then
only in such quantity as the underwriters determine in their sole
discretion will not materially and adversely jeopardize the success
of the offering by the Company. If the total amount of securities,
including Registrable Securities, requested by Holders to be
included in such offering exceeds the amount of securities sold
other than by the Company that the underwriters determine in their
sole discretion could materially and adversely jeopardize the
success of the offering, then the Company shall be required to
include in the offering only that number of such securities,
including Registrable Securities, that the underwriters determine
in their sole discretion will not materially and adversely
jeopardize the success of the offering, the securities so included
to be apportioned among the holders of Registrable Securities
requested to be included in such offering and among the holders of
the Founder Registrable Securities requested to be included in such
offering as follows: 75% of the shares to be sold by shareholders
shall be allocated among the holders of Preferred Registrable
Securities and 25% shall be allocated between the holders of the
Founder Registrable Securities, with the internal allocation among
such groups being on a pro rata basis based on the number of
Registrable Securities held by all the holders requested to be
included in such offering, provided however, that in no event shall
the number of Founder Registrable Securities sold by any Founder
(as a percentage of all shares sold in the offering by
shareholders) exceed the Founder’s percentage holding in the
Company.
(iii) For purposes of the preceding parenthetical
concerning apportionment, for any Stockholder that is a Holder of
Registrable Securities that is a partnership or corporation, the
partners, retired partners and stockholders of such Holder, or the
estates and family members of any such partners and retired
partners and any trusts for the benefit of any of the foregoing
persons (“Related Party”) shall be deemed to be a
single “Holder,” as applicable and any pro rata
reduction with respect to such “Holder” shall be based
upon the aggregate amount of Registrable Securities owned by all
such related entities and individuals.
1.4
Form S-3
Registration .
In case the Company shall receive from the (i) Initiating Holders
(as such term is defined in section 1.2 above) or (ii) the Holders
of the majority in interest of the Founder Registrable Securities
(" Initiating Founders "), a written request or
requests that the Company effect a registration on Form S-3
and any related qualification or compliance with respect to all or
a part of the Registrable Securities owned by such Holder or
Holders, the Company shall:
(i) promptly give written notice of the proposed
registration, and any related qualification or compliance, to all
other Holders; and
(ii) use best efforts to effect, as soon as
practicable, such registration and all such qualifications and
compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such
Holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable
Securities of any other Holders joining in such request as are
specified in a written request given within fifteen (15) days after
receipt of such written notice from the Company, provided, however,
that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this
section 1.4:
(a) if Form S-3 is not available for such
offering by the Holders;
(b) if the Company shall furnish to the Holders
a certificate signed by the Chairman of the Board of the Company
stating that in the good faith judgment of the Board of Directors
of the Company, it would be seriously detrimental to the Company
and its shareholders for such Form S-3 Registration to be
effected at such time, in which event the Company shall have the
right to defer the filing of the Form S-3 registration
statement for a period of not more than ninety (90) days after
receipt of the request of the Holder or Holders under this
Section 1.4; provided, however, that the Company shall not
utilize this right more than once in any twelve month
period;
(c) in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a
general consent to service of process in effecting such
registration, qualification or compliance.
(iii) Subject to the foregoing, the Company shall file
a registration statement covering the Registrable Securities and
other securities so requested to be registered as soon as
practicable after receipt of the request or requests of the
Holders. Registrations effected pursuant to this Section 1.4
shall not be counted as requests for registration effected pursuant
to Sections 1.2.
1.5
Obligations of the
Company .
Whenever required under this Section 1 to effect the
registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible:
(i) prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use best
efforts to cause such registration statement to become effective,
and, upon the request of the Holders of a majority of the
Registrable Securities registered thereunder, keep such
registration statement effective for a period of up to one hundred
eighty (180) days or, if earlier, until the distribution
contemplated in the Registration Statement has been
completed;
(ii) prepare and file with the SEC such amendments
and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be
necessary to comply with the provisions of the Act with respect to
the disposition of all securities covered by such registration
statement;
(iii) furnish to the Holders such numbers of copies of
a prospectus, including a preliminary prospectus, in conformity
with the requirements of the Act, and such other documents as they
may reasonably request in order to facilitate the disposition of
Registrable Securities owned by them;
(iv) use best efforts to register and qualify the
securities covered by such registration statement under such other
securities or Blue Sky laws of such jurisdictions as shall be
reasonably requested by the Holders, provided that the Company
shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions;
(v) in the event of any underwritten public
offering, enter into and perform its obligations under an
underwriting agreement, in usual and customary form, with the
managing underwriter of such offering;
(vi) notify each Holder of Registrable Securities
covered by such registration statement at any time when a
prospectus relating thereto is required to be delivered under the
Act or the happening of any event as a result of which the
prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the
circumstances then existing;
(vii) notify each Holder of Registrable Securities
covered by such registration statement, promptly after the Company
shall receive notice thereof, of the time when such registration
statement becomes effective or when any amendment or supplement or
any prospectus forming a part of such registration has been
filed.
(viii) notify each Holder of Registrable Securities
covered by such registration statement, promptly of any request by
the SEC for the amending of supplementing of such registration
statement or prospectus for additional information.
(ix) advise each Holder whose Registrable Shares are
included in such registration statement promptly after the Company
shall receive notice or otherwise obtain knowledge of the issuance
of any order by the SEC suspending the effectiveness of such
registration statement or amendment thereto or of the initiation or
threatening of any proceeding for that purpose; and promptly use
its best efforts to prevent the issuance of any stop order or to
obtain its withdrawal promptly if a stop order should be
issued.
(x) use its best efforts to furnish, at the request
of any Holder requesting registration of Registrable Securities
pursuant to this agreement on the date that such Registrable
Securities are delivered to the underwriters for sale in connection
with a registration pursuant to this agreement, if such securities
are being sold through underwriters, on the date that the
registration statement with respect to such securities becomes
effective, (i) an opinion, dated such date, of the counsel
representing the Company for the purposes of such registration, in
form and substance as is customarily given to underwriters in an
underwritten public offering, addressed to the underwriters, if
any, and (ii) a letter dated such date, from the independent
certified public accountants of the Company, in form and substance
as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to
the underwriters, if any.
(xi) cause all such Registrable Securities registered
pursuant hereunder to be listed on each securities exchange on
which similar securities issued by the Company are then listed;
and
(xii) provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereunder and a CUSIP
number for all such Registrable Securities, in each case not later
than the effective date of such registration.
1.6
Information from
Holder . It
shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Section 1 with respect to the
Registrable Securities of any selling Holder that such Holder shall
furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of
disposition of such securities as shall be required under the Act
to effect the registration of such Holder’s Registrable
Securities.
1.7
Expenses of
Registration .
All expenses other than underwriting discounts and commissions
incurred in connection with registrations, filings or
qualifications pursuant to Sections 1.2, 1.3 and 1.4 including
(without limitation) all registration, filing and qualification
fees, printers’ and accounting fees, fees and disbursements
of counsel for the Company and the reasonable fees and
disbursements of one counsel for the selling Holders shall be borne
by the Company. Notwithstanding the foregoing, the Company shall
not be required to pay for any expenses of any registration
proceeding begun pursuant to Section 1.2 or Section 1.4
if the registration request is subsequently withdrawn at the
request of the Holders of a majority of the Registrable Securities
to be registered (in which case all participating Holders shall
bear such expenses pro rata based upon the number of Registrable
Securities that were to be requested in the withdrawn
registration), unless, in the case of a registration requested
under Section 1.2, the Holders of a majority of the
Registrable Securities agree to forfeit their right to one demand
registration pursuant to Section 1.2, provided, however, that
if at the time of such withdrawal, the Holders have learned of a
material adverse change in the condition, business, or prospects of
the Company that is different from that known to the Holders at the
time of their request and have withdrawn the request with
reasonable promptness following disclosure by the Company of such
material adverse change, then the Holders shall not be required to
pay any of such expenses and shall retain their rights pursuant to
Section 1.2 or 1.4.
1.8
Delay of
Registration .
No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the
result of any controversy that might arise with respect to the
interpretation or implementation of this Section 1.
1.9
Indemnification . In the event any Registrable Securities are
included in a registration statement under this
Section 1:
(i) To the extent permitted by law, the Company will
indemnify and hold harmless each Holder, the partners or officers,
directors and shareholders of each Holder, legal counsel and
accountants for each Holder, any underwriter (as defined in the
Act) for such Holder and each person, if any, who controls such
Holder or underwriter within the meaning of the Act or the 1934
Act, against any losses, claims, damages or liabilities (joint or
several) to which they may become subject under the Act, the 1934
Act or any state securities laws, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out
of or are based