Document:

exv10w18

 

Exhibit 10.18

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT
TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN
THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

WARRANT TO PURCHASE STOCK

Company: Cavium Networks, a California corporation

Number of Shares: As set forth below

Class of Stock: Series D Preferred Stock, without par value

Warrant Price: $3.2888 per share

Issue Date:                                                             

Expiration Date:                                                     

     THIS WARRANT CERTIFIES THAT, for good and valuable consideration,                     
(“Holder”) is entitled to purchase the number of fully paid and nonassessable shares (as more fully
defined below, the “Shares”) of the class of securities of the above-named company (the “Company”)
at the above-stated Warrant Price, all as set forth above and as adjusted pursuant to Article 2 of
this Warrant, subject to the provisions and upon the terms and conditions set forth in this
Warrant.

     A. Number of Shares. This Warrant shall be exercisable for the Initial Shares plus the
Additional Shares (if any). As used herein:

          (1) “Initial Shares” means                      (                    ) shares of the Class.

          (2) “Additional Shares” means such number of additional shares of the Class as shall equal (a)
(i)                     , multiplied by (ii) the aggregate amount of each Advance (as defined in the Loan
Agreement), divided by (b) the Warrant Price in effect on and as of the date of such Advance, not
to exceed                      (                    ) Additional Shares in the aggregate for all Advances (as such
number may be adjusted for stock splits, stock dividends and the like). This Warrant shall
automatically become exercisable for Additional Shares in the foregoing manner upon the date of
each Advance, and “Additional Shares” as used herein shall refer to the cumulative number of all
such Additional Shares for which this Warrant becomes so exercisable.

          (3) “Shares” means the Initial Shares together with all Additional Shares (if any).

     Until such time as this Warrant is exercised in full or expires, the Warrant Price and the
number of Shares are subject to adjustment from time to time as hereinafter provided.

 

 

          ARTICLE 1. EXERCISE.

          1.1 Method of Exercise. Holder may exercise this Warrant by delivering the original
of this Warrant together with a duly executed Notice of Exercise in substantially the form attached
as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion
right set forth in Article 1.2, Holder shall also deliver to the Company a check, wire transfer (to
an account designated by the Company), or other form of payment acceptable to the Company for the
aggregate Warrant Price for the Shares being purchased.

          1.2 Conversion Right. In lieu of exercising this Warrant as specified in Article 1.1,
Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or other securities
otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares shall be determined
pursuant to Article 1.3.

          1.3 Fair Market Value. If the Company’s common stock is traded in a public market and
the shares are common stock, the fair market value of each Share shall be the closing price of a
Share reported for the business day immediately before Holder delivers this Warrant together with
its Notice of Exercise to the Company (or in the instance where the Warrant is exercised
immediately prior to the effectiveness of the IPO, the “price to public” per share price specified
in the final prospectus relating to the IPO). If the Company’s common stock is traded in a public
market and the Shares are preferred stock, the fair market value of a Share shall be the closing
price of a share of the Company’s common stock reported for the business day immediately before
Holder delivers this Warrant together with its Notice of Exercise to the Company (or, in the
instance where the Warrant is exercised immediately prior to the effectiveness of the IPO, the
initial “price to public” per share price specified in the final prospectus relating to the IPO),
in both cases, multiplied by the number of shares of the Company’s common stock into which a Share
is convertible. If the Company’s common stock is not traded in a public market, the Board of
Directors of the Company shall determine fair market value in its reasonable good faith judgment.

          1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant and, if applicable, the Company receives payment of the aggregate Warrant
Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this
Warrant has not been fully exercised or converted and has not expired, a new Warrant representing
the Shares not so acquired.

          1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company or, in the case of mutilation, or surrender and cancellation of this Warrant,
the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

          1.6 Treatment of Warrant Upon Acquisition of Company.

 

 

                1.6.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale,
license, or other disposition of all or substantially all of the assets of the Company, or any
reorganization, consolidation, or merger of the Company where the holders of the Company’s
securities before the transaction beneficially own less than 50% of the outstanding voting
securities of the surviving entity after the transaction.

                1.6.2 Treatment of Warrant at
Acquisition.

A) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition in
which the sole consideration is cash, either (a) Holder shall exercise its conversion or purchase
right under this Warrant and such exercise will be deemed effective immediately prior to the
consummation of such Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant
will expire upon the consummation of such Acquisition. The Company shall provide the Holder with
written notice of its request relating to the foregoing (together with such reasonable information
as the Holder may request in connection with such contemplated Acquisition giving rise to such
notice), which is to be delivered to Holder not less than ten (10) days prior to the closing of the
proposed Acquisition. If Holder decides to exercise the Warrant to be effective immediately prior
to the consummation of such Acquisition, then Holder shall provide notice of the same not less than
three (3) days before the Closing of such Acquisition. The failure of Holder to provide such
notice shall result in Holder being deemed to have elected not to exercise the Warrant.

B) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that
is an “arms length” sale of all or substantially all of the Company’s assets (and only its assets)
to a third party that is not an Affiliate (as defined below) of the Company (a “True Asset Sale”),
either (a) Holder shall exercise its conversion or purchase right under this Warrant and such
exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b)
if Holder elects not to exercise the Warrant, this Warrant will continue until the Expiration Date
if the Company continues as a going concern following the closing of any such True Asset Sale. The
Company shall provide the Holder with written notice of its request relating to the foregoing
(together with such reasonable information as the Holder may request in connection with such
contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less
than ten (10) days prior to the closing of the proposed Acquisition. If Holder decides to exercise
the Warrant to be effective immediately prior to the consummation of such True Asset Sale, then
Holder shall provide notice of the same not less than three (3) days before the Closing of such
True Asset Sale. The failure of Holder to provide such notice shall result in Holder being deemed
to have elected not to exercise the Warrant. If the Warrant remains unexercised and the Company is
not a going concern following the closing of the True Asset Sale, then the Warrant shall expire
when the Company ceases to be a going concern (as reasonably determined by the Company’s Board).

C) Upon the closing of any Acquisition other than those particularly described in subsections (A)
and (B) above, the successor entity shall assume the obligations of this Warrant, and this Warrant
shall be exercisable for the same securities, cash, and property as would be payable for the Shares
issuable upon exercise of the unexercised portion of this Warrant as if such Shares were
outstanding on the record date for the

 

 

Acquisition and subsequent closing. The Warrant Price and/or number of Shares shall be adjusted
accordingly.

As used herein “Affiliate” shall mean any person or entity that owns or controls directly
or indirectly ten percent (10%) or more of the stock of Company, any person or entity that controls
or is controlled by or is under common control with such persons or entities, and each of such
person’s or entity’s officers, directors, joint venturers or partners, as applicable.

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

     2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on the
Shares payable in common stock, or other securities, then upon exercise of this Warrant, for each
Share acquired, Holder shall receive, without cost to Holder, the total number and kind of
securities to which Holder would have been entitled had Holder owned the Shares of record as of the
date the dividend occurred. If the Company subdivides the Shares by reclassification or otherwise
into a greater number of shares or takes any other action which increase the amount of stock into
which the Shares are convertible, the number of shares purchasable hereunder shall be
proportionately increased and the Warrant Price shall be proportionately decreased. If the
outstanding shares are combined or consolidated, by reclassification or otherwise, into a lesser
number of shares, the Warrant Price shall be proportionately increased and the number of Shares
shall be proportionately decreased.

     2.2 Reclassification, Exchange, Combinations or Substitution. Upon any
reclassification, exchange, substitution, or other event that results in a change of the number
and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall
be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of
securities and property that Holder would have received for the Shares if this Warrant had been
exercised immediately before such reclassification, exchange, substitution, or other event. Such
an event shall include any automatic conversion of the outstanding or issuable securities of the
Company of the same class or series as the Shares to common stock pursuant to the terms of the
Company’s Sixth Amended and Restated Articles of Incorporation, as amended and in effect from time
to time (the “Articles”). The Company or its successor shall promptly issue to Holder an amendment
to this Warrant setting forth the number and kind of such new securities or other property issuable
upon exercise or conversion of this Warrant as a result of such reclassification, exchange,
substitution or other event that results in a change of the number and/or class of securities
issuable upon exercise or conversion of this Warrant. The amendment to this Warrant shall provide
for adjustments which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and
to the number of securities or property issuable upon exercise of the new Warrant. The provisions
of this Article 2.2 shall similarly apply to successive reclassifications, exchanges,
substitutions, or other events.

     2.3 Adjustments for Diluting Issuances. The number of shares of the Company’s common
stock for which the Shares are convertible shall be adjusted from time to time in accordance with
Section B(3) of Article III of the Articles (the “Series D Antidilution Provisions”),. The Series
D Antidilution Provision may not be amended, modified or waived, without the prior written consent
of Holder unless such amendment,

 

 

modification or waiver affects the rights associated with the Shares in the same manner as
such amendment, modification or waiver affects the rights associated with all other shares of the
same series as the Shares granted to the Holder.

     2.4 No Impairment. The Company shall not, by amendment of the Articles or through a
reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of
securities or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed under this Warrant by the Company, but shall at all
times in good faith assist in carrying out of all the provisions of this Article 2 and in taking
all such action as may be necessary or appropriate to protect Holder’s rights under this Article
against impairment.

     2.5 Fractional Shares. No fractional Shares shall be issuable upon exercise or
conversion of the Warrant and the number of Shares to be issued shall be rounded down to the
nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the
Warrant, the Company shall eliminate such fractional share interest by paying Holder the amount
computed by multiplying the fractional interest by the fair market value of a full Share.

     2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the
Company shall promptly notify Holder in writing, and, at the Company’s expense, promptly compute
such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth
such adjustment and the facts upon which such adjustment is based. The Company shall, upon written
request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date
thereof and the series of adjustments leading to such Warrant Price.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

     3.1 Representations and Warranties. The Company represents and warrants to the Holder
as follows:

          (a) The Warrant Price referenced on the first page of this Warrant is not greater than the
price per share at which shares of the Class were last issued in an arms-length transaction in
which at least $500,000 of such shares were sold.

          (b) All Shares which may be issued upon the exercise of the purchase right represented by this
Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance,
be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and
encumbrances except for restrictions on transfer provided for herein or under applicable federal
and state securities laws.

          (c) The Capitalization Table previously provided to Holder remains true and complete as of the
Issue Date.

     3.2 Notice of Certain Events. If the Company proposes at any time (a) to declare any
dividend or distribution upon the outstanding shares of the Class, whether in cash, property,
stock, or other securities and whether or not a regular cash dividend; (b) to offer for
subscription or sale pro rata to the holders of the outstanding shares of the Class any additional
shares of any class or series of the Company’s stock;

 

 

(c) to effect any reclassification, reorganization or recapitalization of any of its stock; (d) to
effect an Acquisition or to liquidate, dissolve or wind up; or (e) offer holders of registration
rights the opportunity to participate in an underwritten public offering of the company’s
securities for cash, then, in connection with each such event, the Company shall give Holder: (1)
at least 10 days prior written notice of the date on which a record will be taken for such
dividend, distribution, or subscription rights (and specifying the date on which the holders of
shares of the same class and series as the Shares will be entitled thereto) or for determining
rights to vote, if any, in respect of the matters referred to in (c) and (d) above; (2) in the case
of the matters referred to in (c) and (d) above at least 10 days prior written notice of the date
when the same will take place (and specifying the date on which the holders of shares of the same
class and series as the Shares will be entitled to exchange their shares for the securities or
other property deliverable upon the occurrence of such event); and (3) in the case of the matter
referred to in (e) above, the same notice as is given to the holders of such registration rights.

     3.3 Registration Under Securities Act of 1933, as amended. The Company agrees that
the Shares or, if the Shares are convertible into common stock of the Company, such common stock,
shall have certain “S-3” and “Piggyback,” registration rights pursuant to and as set forth in the
Company’s Investor Rights Agreement or similar agreement. The provisions set forth in the
Company’s Investors’ Right Agreement or similar agreement relating to the above in effect as of the
Issue Date may not be amended, modified or waived without the prior written consent of Holder
unless such amendment, modification or waiver affects the rights associated with the Shares in the
same manner as such amendment, modification, or waiver affects the rights associated with all other
shares of the same series and class as the Shares granted to the Holder.

     3.4 No Shareholder Rights. Except as provided in this Warrant, the Holder will not
have any rights as a shareholder of the Company until the exercise of this Warrant.

ARTICLE 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER. The Holder represents and warrants
to the Company as follows:

     4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon
exercise of this Warrant by the Holder will be acquired for investment for the Holder’s account,
not as a nominee or agent, and not with a view to the public resale or distribution within the
meaning of the Act. Holder also represents that the Holder has not been formed for the specific
purpose of acquiring this Warrant or the Shares.

     4.2 Disclosure of Information. The Holder has received or has had full access to all
the information it considers necessary or appropriate to make an informed investment decision with
respect to the acquisition of this Warrant and its underlying securities. The Holder further has
had an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of this Warrant and its underlying securities and to obtain additional
information (to the extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify any information furnished to the Holder or to
which the Holder has access.

 

 

     4.3 Investment Experience. The Holder understands that the purchase of this Warrant
and its underlying securities involves substantial risk. The Holder has experience as an investor
in securities of companies in the development stage and acknowledges that the Holder can bear the
economic risk of such Holder’s investment in this Warrant and its underlying securities and has
such knowledge and experience in financial or business matters that the Holder is capable of
evaluating the merits and risks of its investment in this Warrant and its underlying securities
and/or has a preexisting personal or business relationship with the Company and certain of its
officers, directors or controlling persons of a nature and duration that enables the Holder to be
aware of the character, business acumen and financial circumstances of such persons.

     4.4 Accredited Investor Status. The Holder is an “accredited investor” within the
meaning of Regulation D promulgated under the Act.

     4.5 The Act. The Holder understands that this Warrant and the Shares issuable upon
exercise or conversion hereof have not been registered under the Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the
Holder’s investment intent as expressed herein. The Holder understands that this Warrant and the
Shares issued upon any exercise or conversion hereof must be held indefinitely unless subsequently
registered under the 1933 Act and qualified under applicable state securities laws, or unless
exemption from such registration and qualification are otherwise available.

ARTICLE 5. MISCELLANEOUS.

     5.1 Term: This Warrant is exercisable in whole or in part at any time and from time
to time on or before the Expiration Date. 

     5.2 Legends. This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED
UNDER THE ACT, OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND
PURSUANT TO THE PROVISIONS OF ARTICLE 5 OF THAT CERTAIN WARRANT TO
PURCHASE STOCK ISSUED BY THE COMPANY TO                      DATED AS
OF                     , MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND
APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH
OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM
REGISTRATION.

     5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable
upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion
of the Shares, if any) may not be transferred or assigned

 

 

in whole or in part without compliance with applicable federal and state securities laws by the
transferor and the transferee (including, without limitation, the delivery of investment
representation letters and legal opinions reasonably satisfactory to the Company, as reasonably
requested by the Company). The Company shall not require Holder to provide an opinion of counsel
if the transfer is to an affiliate of Holder, provided that any such transferee is an “accredited
investor” as defined in Regulation D promulgated under the Act.

          5.4 Transfer Procedure. Subject to the provisions of Article 5.3 and upon
providing Company with written notice, Holder may transfer all or part of this Warrant or the
Shares issuable upon exercise of this Warrant (or the Shares issuable directly or indirectly, upon
conversion of the Shares, if any) to any transferee, provided, however, in connection with any such
transfer, Holder will give the Company notice of the portion of the Warrant being transferred with
the name, address and taxpayer identification number of the transferee and Holder will surrender
this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). The
Company may refuse to transfer this Warrant or the Shares to any person who directly competes with
the Company, unless, in either case, the stock of the Company is publicly traded.

          5.5 Notices. All notices and other communications from the Company to the Holder, or
vice versa, shall be in writing and shall be deemed delivered and effective when given personally
or mailed by first-class registered or certified mail, postage prepaid (or on the first business
day after transmission by facsimile), at such address as may have been furnished to the Company or
the Holder, as the case may be. Notices to the Holder shall be delivered as follows until the
Company receives notice of a change of address in connection with a transfer or otherwise:

                                                            

                                                            

                                                            

                                                            

                                                            

     Notice to the Company shall be addressed as follows until the Holder receives notice of a
change in address:

Cavium Networks

Attn: Chief Financial Officer

805 East Middlefield Road

Mountain View, CA 94043

Telephone:                    

Facsimile:                    

          5.6 Waiver. This Warrant and any term hereof may be changed, waived, amended,
discharged or terminated only by an instrument in writing signed by the party against which
enforcement of such change, waiver, discharge or termination is sought; provided however, that in
the event, as a result of one or more transfers by Holder or its transferees, this Warrant is split
into more than one warrant (collectively, the “Split Warrants”), then the holder of the Split
Warrant then exercisable for the greatest number of Shares (as compared the remaining Split
Warrants) may waive,

 

 

amend, discharge or terminate any term of the Split Warrants on behalf of all holders of the Split
Warrants; provided that such waiver, amendment, discharge or termination shall effect all Split
Warrants in the same manner.

          5.7 Attorney’s Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorney’s
fees.

          5.8 Automatic Conversion upon Expiration. In the event that, upon the Expiration
Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as
determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such
date, then this Warrant shall automatically be deemed on and as of such date to be converted
pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not
previously have been exercised or converted, and the Company shall promptly deliver a certificate
representing the Shares (or such other securities) issued upon such conversion to the Holder.

          5.9 Counterparts. This Warrant may be executed in counterparts, all of which together
shall constitute one and the same agreement.

          5.10 Governing Law. This Warrant shall be governed by and construed in accordance
with the laws of the State of California, without giving effect to its principles regarding
conflicts of law.

	 	 	 	 	 
	“COMPANY”	 	 
	 
	 	 	 	 
	CAVIUM NETWORKS	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Print)	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	“HOLDER”	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Print)	 	 
	Title:
	 	 	 	 

 

 

APPENDIX 1

NOTICE OF EXERCISE

     1. Holder elects to purchase                                  shares of the Common/Series D Preferred [strike one]
Stock of Cavium Networks pursuant to the terms of the attached Warrant, and tenders payment of the
purchase price of the shares in full.

          [or]

     1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in the manner
specified in the Warrant. This conversion is exercised for                      of the Shares
covered by the Warrant.

     [Strike paragraph that does not apply.]

     2. Please issue a certificate or certificates representing the shares in the name specified
below:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Holders Name
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Address)	 	 

     3. By its execution below and for the benefit of the Company, Holder hereby restates each of
the representations and warranties in Article 4 of the Warrant as the date hereof.

	 	 	 	 	 	 	 
	 	 	HOLDER:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(Date):exv4w2

 

Exhibit 4.2

AMENDMENT NO. 1 TO TENDER AND SUPPORT AGREEMENT

     This AMENDMENT NO. 1 (this “Amendment”) dated as of February 7, 2007 by and among KLA Tencor
Corporation, a Delaware corporation (“Parent”), Fenway Acquisition Corporation, a Delaware
corporation and a wholly-owned subsidiary of Parent (“Merger Subsidiary”), Therma-Wave, Inc., a
Delaware corporation (the “Company”), and the parties listed on Annex I and Annex
II (each, a “Securityholder”) to the Tender and Support Agreement dated as of January 7, 2006
by and among Parent, Merger Subsidiary, the Company and each Securityholder (the “Tender and
Support Agreement”), hereby amends certain provisions of the Tender and Support Agreement. Any
capitalized term that is used but not otherwise defined in this Amendment shall have the meaning
given to that term in the Tender and Support Agreement.

RECITALS

     WHEREAS, the parties to the Tender and Support Agreement desire to amend the Tender and
Support Agreement by amending and restating Annex I thereto, as set forth in this Amendment; and

     WHEREAS, the parties hereto have duly authorized and approved this Amendment.

     NOW THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth in this Amendment and the Tender and Support
Agreement, as applicable, the parties hereto hereby agree as follows:

AGREEMENT

     SECTION 1. Annex I. Annex I to the Tender and Support Agreement is hereby amended
and superseded in its entirety as set forth in Annex A hereto.

     SECTION 2. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to the conflicts of law rules of
such state.

     SECTION 3. Counterparts; Effectiveness. This Amendment may be signed in any number
of counterparts, each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. This Amendment shall become effective when each
party hereto shall have received a counterpart hereof signed by all of the other parties hereto.

     SECTION 4. Amendment. This Amendment may not be altered, amended or supplemented
except by an agreement in writing signed by each of the parties hereto.

     SECTION 5. Tender and Support Agreement. Except as amended by this Amendment, the
Tender and Support Agreement shall remain in full force and effect.

[signature page follows]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	KLA-TENCOR CORPORATION

 	 
	 	By:  	/s/ Jeffrey L. Hall
 	 
	 	 	Name:  	Jeffrey L. Hall 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	FENWAY ACQUISITION CORPORATION

 	 
	 	By:  	/s/ Jeffrey L. Hall
 	 
	 	 	Name:  	Jeffrey L. Hall 	 
	 	 	Title:  	President 	 
	 
	 	THERMA-WAVE, INC.

 	 
	 	By:  	/s/ Boris Lipkin
 	 
	 	 	Name:  	Boris Lipkin 	 
	 	 	Title:  	President and CEO 	 
	 

[Signature Page to Amendment]

 

 

	 	 	 	 	 
	 	SECURITYHOLDERS

NORTH RUN MASTER FUND, LP

 	 
	 	By:  	North Run GP, LP, its General Partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	North Run Advisors, LLC, its General Partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Thomas B. Ellis
 	 
	 	 	Thomas B. Ellis, Member 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Todd B. Hammer
 	 
	 	 	Todd B. Hammer, Member 	 
	 	 	 	 
	 

[Signature Page to Amendment]

 

 

	 	 	 	 	 
	 	DEEPHAVEN LONG/SHORT EQUITY TRADING LTD.

 	 
	 	By:  	Deephaven Capital Management LLC
 	 
	 	 	 	 
	 	 	 	 
	 
	 	Its: Investment Manager

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Scott Nelson
 	 
	 	 	Name:  	Scott Nelson 	 
	 	 	Title:  	Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	DEEPHAVEN RELATIVE VALUE

EQUITY TRADING LTD.

 	 
	 	By:  	Deephaven Capital Management LLC
 	 
	 	 	 	 
	 	 	 	 
	 
	 	Its: Investment Manager

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Scott Nelson
 	 
	 	 	Name:  	Scott Nelson 	 
	 	 	Title:  	Chief Operating Officer 	 
	 

[Signature Page to Amendment]

 

 

	 	 	 	 	 
	 	LAWRENCE TOMLINSON

 	 
	 	/s/ Lawrence Tomlinson
 	 
	 	 	 
	 	 	 
	 
	 	G. LEONARD BAKER, JR.

 	 
	 	/s/ G. Leonard Baker, Jr.
 	 
	 	 	 
	 	 	 
	 
	 	JOHN J. D’ERRICO

 	 
	 	/s/ John J. D’Errico
 	 
	 	 	 
	 	 	 
	 
	 	GREGORY GRAVES

 	 
	 	/s/ Gregory Graves
 	 
	 	 	 
	 	 	 
	 
	 	NAM PYO SUH

 	 
	 	/s/ Nam Pyo Suh
 	 
	 	 	 
	 	 	 
	 

[Signature Page to Amendment]

 

 

	 	 	 	 	 
	 	JOHN WILLINGE

 	 
	 	/s/ John Willinge
 	 
	 	 	 
	 	 	 
	 
	 	PETER HANLEY

 	 
	 	/s/ Peter Hanley
 	 
	 	 	 
	 	 	 
	 
	 	DAVID E. ASPNES

 	 
	 	/s/ David E. Aspnes
 	 
	 	 	 
	 	 	 
	 
	 	PAPKEN DER TOROSSIAN

 	 
	 	/s/ Papken Der Torossian
 	 
	 	 	 
	 	 	 
	 
	 	BORIS LIPKIN

 	 
	 	/s/ Boris Lipkin
 	 
	 	 	 
	 	 	 
	 

[Signature Page to Amendment]

 

 

	 	 	 	 	 
	 	JOSEPH PASSARELLO

 	 
	 	/s/ Joseph Passarello
 	 
	 	 	 
	 	 	 
	 
	 	BRIAN RENNER

 	 
	 	/s/ Brian Renner
 	 
	 	 	 
	 	 	 
	 
	 	JON L. OPSAL

 	 
	 	/s/ Jon L. Opsal
 	 
	 	 	 
	 	 	 
	 
	 	JOHN MATHEWS

 	 
	 	/s/ John Mathews
 	 
	 	 	 
	 	 	 
	 
	 	RAUL TAN

 	 
	 	/s/ Raul Tan
 	 
	 	 	 
	 	 	 
	 

[Signature Page to Amendment]

 

 

	 	 	 	 	 
	 	NOEL SIMMONS

 	 
	 	/s/ Noel Simmons
 	 
	 	 	 
	 	 	 
	 
	 	LENA NICOLAIDES

 	 
	 	/s/ Lena Nicolaides
 	 
	 	 	 
	 	 	 
	 

[Signature Page to Amendment]

 

 

ANNEX A

	 	 	 
	Securityholder	 	Subject Company Shares
	Larry Tomlinson (BOD)
	 	—
	Leonard Baker (BOD)
	 	150,807
	Leonard Baker (BOD)
	 	186,631(1)
	John D’Errico (BOD)
	 	20,000
	Gregory Graves (BOD)
	 	—
	Nam Suh (BOD)
	 	—
	John Willinge (BOD)
	 	—
	Peter Hanley (BOD)
	 	—
	David Aspnes (BOD)
	 	25,500
	Papken Der Torossian (Chairman)
	 	37,000
	Papken Der Torossian (Chairman)
	 	234,733(2)
	Boris Lipkin
	 	30,599
	Joe Passarello
	 	14,275
	Brian Renner
	 	5,079
	Jon Opsal
	 	159,976
	John Mathews
	 	5,386
	Raul Tan
	 	17,050
	Noel Simmons
	 	44,721
	Lena Nicolaides
	 	11,460
	North Run Master Fund
	 	3,606,900

(1) Of these shares, 69,831 are held in a trust where Mr. Baker is a trustee. The remaining 116,800
shares are held by a limited partnership of which Mr. Baker is a general partner. Mr. Baker
disclaims beneficial ownership in these shares as he only has pecuniary interest in the trust and
limited partnership.

(2) The shares are held in a family trust of which Mr. Der Torossian is a trustee. Mr. Der
Torossian disclaims beneficial ownership in these shares as he only has pecuniary interest in the
trust.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]