VOTING AND SUPPORT
AGREEMENT
THIS VOTING AND SUPPORT AGREEMENT (this
“Agreement”), dated as of October 12, 2009, by and
among Sigma Designs, Inc., a corporation incorporated under the
laws of the State of California (“ Purchaser
”), and the undersigned shareholders (each, a
“Shareholder” and, collectively, the
“Shareholders”) of CopperGate Communications Ltd., an
corporation incorporated under the laws of the State of Israel (the
“ Company ”). Except as otherwise
provided herein, capitalized terms that are used but not otherwise
defined herein shall have the meaning assigned to such terms in the
Acquisition Agreement (as defined below).
RECITALS
A . Contemporaneously
with the execution of this Agreement, the Company, Purchaser, and
Carmel V.C. 2 Ltd. and Tamir Fishman Ventures Management II Ltd. as
the Holder Representatives and certain shareholders of the Company
listed on Exhibit A attached thereto have entered into an
Acquisition Agreement (the “ Acquisition
Agreement ”), providing for, among other things, the
acquisition of all of the issued and outstanding share capital of
the Company including any and all securities convertible and/or
exercisable into Company Securities (as defined below), pursuant to
which the Company will become a wholly-owned subsidiary of
Purchaser whether by way of a share purchase of all of the issued
and outstanding share capital of the Company or by way of a merger
of a wholly owned subsidiary of Purchaser (to be incorporated in
Israel) with the Company, at the Closing thereof or subsequent
thereto.
B. The
Shareholders are the holders and beneficial owners of Company
Securities.
C. In
order to induce Purchaser to enter into the Acquisition Agreement,
each of the Shareholders, severally and not jointly, and solely in
its or his capacity as a shareholder, wish to enter into this
Agreement.
NOW, THEREFORE , for good and valuable consideration, the
receipt, sufficiency and adequacy of which is hereby acknowledged,
the parties hereto agree as follows:
1.
Representations of Shareholders .
Each of the Shareholders represents and warrants to Purchaser
solely with respect to itself, severally and not jointly,
that:
(a)
such
Shareholder is the holder and beneficial owner of the Company
Ordinary Shares and/or the Company Ordinary A Shares and/or Company
Preferred Shares including Preferred A-1 Shares and/or Preferred
A-3 Shares and/or Preferred B Shares and/or Preferred C Shares set
forth opposite such Shareholder’s name on Section 3.05(e) of
the Company Disclosure Schedule of the Acquisition Agreement (such
shares collectively referred to as “ Company
Securities ”), free and clear of all Liens and,
except for this Agreement or as set forth or specifically disclosed
in the Acquisition Agreement (including the Company Disclosure
Schedule), there are no options, warrants or other rights,
agreements, arrangements or commitments of any character to which
such Shareholder is a party relating to the pledge, disposition or
Voting (as defined below) of any Company Securities and there are
no Voting trusts or Voting agreements with respect to such
shares;
(b)
such
Shareholder does not beneficially own any Company Securities other
than as set forth in Section 3.05(e) of the Company Disclosure
Schedule of the Acquisition Agreement and, except as set forth or
specifically disclosed in the Acquisition Agreement (including the
Company Disclosure Schedule), does not have any options, warrants
or other rights to acquire any additional shares of capital stock
of the Company or any security exercisable for or convertible into
shares of capital stock of the Company (other than upon conversion
of any Company Preferred Shares into Company Ordinary
Shares);
(c)
such
Shareholder has full power and authority and has taken all actions
necessary to enter into, execute and deliver this Agreement and to
perform fully such Shareholder’s obligations
hereunder;
(d)
this
Agreement has been duly executed and delivered and constitutes the
legal, valid and binding obligation of such Shareholder enforceable
against such Shareholder in accordance with its terms except as
such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws affecting
creditors’ rights generally and by general equitable
principles (regardless of whether enforceability is considered in
proceeding in equity or at law); and
(e)
the
execution, delivery and performance of this Agreement by such
Shareholder does not, and the consummation by such Shareholder of
the transactions contemplated hereby will not (i) result in
a conflict with or in a breach of any provisions of the
organizational documents of the Shareholder, (ii) result in a
violation or breach of, or constitute (with or without due notice
or lapse of time or both) a default (or give rise to any right of
termination, cancellation, or acceleration) under any contract,
agreement, instrument, commitment, arrangement or understanding
with respect to the Shareholder’s Company Securities, (iii)
require any material consent, authorization or approval of any
person or (iv) violate or conflict with any writ, injunction or
decree applicable to the Shareholder or the Shareholder’s
Company Securities.
2.
Agreement to Vote; Proxy . Each of
the Shareholders hereby agrees to vote such Shareholder’s
Company Securities as follows at every meeting of the shareholders
of the Company and at every adjournment or postponement thereof or
at any written action of the shareholders or otherwise with respect
to any of the following matters:
(a)
in
favor of adoption and approval of the Acquisition Agreement and the
transactions contemplated thereby (the “
Acquisition ”), at every meeting of the
shareholders of the Company at which such matters are considered
and at every adjournment or postponement thereof, including but not
limited to, if notified by the Purchaser of its intent to
consummate the Merger under Section 6.11 in favor of the Merger and
any other proposals subject to and consistent with the provisions
of the Acquisition Agreement in support of the Merger;
and
(b)
against any action or agreement (other than the Acquisition
Agreement or the actions and transactions contemplated thereby)
that would result in a breach of any covenant, representation or
warranty or any other obligation or agreement of the Company or
such Shareholder under the Acquisition Agreement or that could
result in any of the conditions to the Company’s or the
Selling Shareholders' obligations under the Acquisition Agreement
not being fulfilled; and
(c)
except for the Acquisition or the Merger, against any Acquisition
Proposal, or merger, consolidation, business combination,
reorganization, recapitalization, liquidation or sale or transfer
of any material assets of the Company or its
Subsidiaries.
Each of the
Shareholders hereby delivers to Thinh Tran and Thomas E. Gay III an
irrevocable proxy (the “ Company Proxy ”)
substantially in the form attached hereto as
Exhibit A , to Vote such Shareholder’s
Company Securities, as set forth above. The Proxies delivered by
each of the Shareholders pursuant to this Section 2 shall be
irrevocable, to the fullest extent permissible by applicable law,
during the term of this Agreement. For purposes of this Agreement,
“ Vote ” or “ Voting
” includes voting in person or by proxy in favor of or
against any action, otherwise consenting or withholding consent in
respect of any action or taking other action in favor of or against
any action.
3.
No Voting Trusts . Each of the
Shareholders agrees that they will not, nor will they permit any
entity under their control to, deposit any of its Company
Securities in a Voting trust or subject any of their Company
Securities to any arrangement with respect to the Voting of such
shares in a manner inconsistent with this Agreement or the
Acquisition Agreement.