Document:

EX-4.2 AMENDED AND RESTATED REGISTRATION RIGHTS

 

Exhibit
4.2

AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

     THIS FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (the “Agreement”), is made and
entered into as of the 14th day of June, 2004, by and among AuthenTec, Inc., a Delaware corporation
(the “Company”), the undersigned holders of the Company’s Series C Convertible Preferred Stock,
$0.01 par value (the “Series C Preferred Stock”), Series B Convertible Preferred Stock, $0.01 par
value (the “Series B Preferred Stock”), Series A Convertible Preferred Stock, $0.01 par value per
share (the “Series A Preferred Stock”), Junior Convertible Preferred Stock, $0.01 par value per
share (the “Junior Preferred Stock” and, together with the Series A Preferred Stock, the Series B
Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, the “Preferred Stock”), and
Silicon Valley Bank, a California-chartered bank, listed on Schedule A attached hereto (the
“Existing Holders”) and the undersigned holders of Series D Convertible Preferred Stock, $0.01 per
value (the “Series D Preferred Stock”), listed on Schedule B attached hereto (the “New
Holders” and, together with the Existing Holders, the “Investors”).

W I T N E S S E T H

     WHEREAS, the Company and the Existing Holders have certain registration and other rights
pursuant to the Third Amended and Restated Registration Rights Agreement dated as of February 24,
2003, among the Company and the Existing Holders (the “Prior Agreement”);

     WHEREAS, the Existing Holders wish to terminate the Prior Agreement and to accept the rights
created pursuant hereto in lieu of the rights granted to them under the Prior Agreement; and

     WHEREAS, the New Holders and certain of the Existing Holders are parties to that certain
Series D Preferred Stock Purchase Agreement dated of even date herewith, among the Company, the New
Holders and certain Existing Holders (the “Series D Purchase Agreement”), which provides, among
other things, that as a condition to the closing of the sale of the Series D Preferred Stock, this
Agreement must be executed and delivered by the New Holders, the Existing Holders and the Company,
and the Prior Agreement amended and restated as set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the
Company and the Existing Holders hereby agree that the Prior Agreement shall be superseded and
replaced in its entirety by this Agreement, and all parties hereto further agree as follows:

     1. Definitions. For purposes of this Agreement, the following terms shall have the
following respective meanings:

 

 

          (a) “Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute
enacted hereafter, and the rules and regulations of the Commission thereunder, all as the same
shall be in effect from time to time.

          (b) “Commission” shall mean the Securities and Exchange Commission or any other federal agency
at the time administering the Act.

          (c) “Eligibility Date” shall mean December 1, 2006.

          (d) The terms “register,” “registered” and “registration” refer to a registration effected by
preparing and filing a registration statement in compliance with the Act and the declaration or
ordering of effectiveness of such registration statement by the Commission.

          (e) “Registrable Securities” shall mean (i) shares of Preferred Stock and shares of Common
Stock issued or issuable upon conversion of the Preferred Stock held of record by a Holder, whether
now owned or hereafter acquired, including any Preferred Stock issued or issuable upon exercise of
warrants held by a Holder (ii) shares of Common Stock held of record by the Holder, whether now
owned or hereafter acquired, and (iii) any Common Stock issued as or issuable upon conversion or
exercise of any, warrant, right or other security which is issued as a dividend or other
distribution with respect to, or in exchange or in replacement of, the foregoing.

          (f) “Holder” shall mean an Investor if such Investor holds Registrable Securities and any
other person holding Registrable Securities to whom these registration rights have been transferred
pursuant to Section 14 of this Agreement; provided, however, that any person who
acquires any of the Registrable Securities after the Initial Offering in a public sale pursuant to
a registration statement filed by the Company under the Act or pursuant to a public sale under Rule
144 under the Act shall not be considered a Holder.

          (g) “1934 Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar
federal statute enacted hereafter, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect from time to time.

          (h) “Initial Offering” shall mean the closing of the Company’s first bona fide sale of its
Common Stock in a firm commitment underwritten public offering underwritten by a nationally
recognized underwriter under the Act pursuant to an effective registration statement filed by the
Company with the Commission (other than a registration relating solely to a transaction under Rule
145 under the Act (or any successor thereto) or any employee benefit plan of the Company on Form S-8 (or any successor
thereto).

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     2. Demand Registration. Subject to Section 10 hereof, if, at any time or from time to
time following the Eligibility Date (but in no event prior to six (6) months from the effective
date of any registration of the Company’s securities in connection with an Initial Offering), the
Company shall receive a written request (specifying that it is being made pursuant to this Section
2) from either (i) the Holders who hold at least twenty-five percent (25%) of the Registrable
Securities, (ii) Holders who hold at least forty percent (40%) of the Series C Preferred Stock (or
shares of Common Stock issued or issuable upon conversion thereof) or (iii) Holders who hold at
least forty percent (40%) of the Series D Preferred Stock (or shares of Common Stock issued or
issuable upon conversion thereof) that the Company effect a registration statement under the Act
covering the registration for offer and sale of at least 25% of the Registrable Securities held by
such Holders (or a lesser percentage if the aggregate offering price, net of underwriting discounts
and commissions, would exceed $10,000,000), then the Company shall use its best efforts to effect
as soon as practicable, and in any event within ninety (90) days of the receipt of such request,
the registration under the Act of all Registrable Securities that the initiating Holders request to
be registered, together with all Registrable Securities of any other Holder or Holders joining in
such request pursuant to this Section 2. The Company shall promptly notify in writing all other
Holders of such request for demand registration. Within twenty (20) calendar days after such
notice has been made by the Company, any other Holder may give written notice to the Company of its
intent to include its Registrable Securities in the registration, which notice shall specify the
number of shares to be included. The Holders may, if they so desire, individually or collectively
condition their request or participation on price or other market terms being available at the time
of registration. Notwithstanding the foregoing, the Company shall have the right to delay any
registration to be undertaken pursuant to this Section 2 for one time, but not more than one time,
not to exceed one hundred and twenty (120) consecutive days, provided that the Company
shall furnish to the Holders a certificate signed by the Chief Executive Officer of the Company
stating that in the good faith judgment of the Board, such registration and offering would
materially adversely affect the Company, and provided further that the Company shall
immediately cease such delay in the event the condition causing the deferral of the registration
and offering is no longer pending.

     3. Piggyback Registration. Subject to Sections 9 and 10 of this Agreement, if at any
time the Company proposes to register any of its securities under the Act, either for its own
account or for the account of a security holder (other than a registration relating solely to the
sale of securities to participants in a Company benefit plan, a registration relating solely to a
corporate reorganization or other transaction under Rule 145 of the Act or any successor rule), the
Company shall, each such time, promptly give each Holder written notice of such proposal and use
its best efforts to include in such registration (and any related qualification under blue sky laws
or other compliance), and in any underwriting involved therein, all the Registrable Securities
specified in a written request or requests made within twenty (20) days after receipt of such written notice from the
Company, by any such Holder.

     4. Registration on Form S-3.

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          (a) Subject to Section 10, if, at any time or from time to time a Holder or Holders of at
least 2% of the Company’s then outstanding Common Stock (including Common Stock issuable upon
conversion of Preferred Stock) request in writing (specifying that such request is being made
pursuant to this Section 4) that the Company effect a registration statement on Form S-3 (or any
successor registration form to Form S-3 regardless of its designation) for an offering of
Registrable Securities with a reasonably anticipated aggregate price to the public in excess of
$1,000,000 at a time when the Company is eligible to register securities on Form S-3 (or any
successor registration form to Form S-3 regardless of its designation), then the Company will
promptly give written notice of the proposed registration to all the Holders and will use its best
efforts to effect as soon as practicable thereafter the registration under the Act of all
Registrable Securities of any Holder joining in such request as are specified in a written request
received by the Company within thirty (30) days after the date of such written notice from the
Company. Notwithstanding the foregoing, the Company shall have the right to delay any registration
to be undertaken pursuant to this Section 4 for one time, but not more than one time, not to exceed
ninety (90) consecutive days provided that the Company furnishes to the Holders a
certificate signed by the Chief Executive Officer of the company stating that in the good faith
judgment of the Board, such registration and offering would materially and adversely affect the
Company and provided further that the Company shall immediately cease such delay in the
event the condition causing the deferral of the registration and offering is no longer pending.

          (b) The Holders’ rights to registration under this Section 4 are in addition to, and not in
lieu of, their rights to registration under Sections 2 and 3.

     5. Obligations of the Company. Whenever required under this Agreement to use its best
efforts to effect the registration of any Registrable Securities, the Company shall, at its
expense:

          (a) Prepare and file within sixty (60) days with the Commission a registration statement
covering such Registrable Securities and use its best efforts to cause such registration statement
to be declared effective by the Commission as expeditiously as possible and to keep such
registration effective until the earlier of (i) the date when all Registrable Securities covered by
the registration statement have been sold or (ii) two hundred seventy (270) days from the effective
date of the registration statement.

          (b) Prepare and file with the Commission such amendments and post-effective amendments to such
registration statement as may be necessary to keep such registration statement effective during the
period referred to in Subsections 5(a)(i) and (ii) and to comply with the provisions of the Act with respect to the disposition of all
securities covered by such registration statement, and cause the prospectus to be supplemented by
any required prospectus supplement, and as so supplemented to be filed with the Commission pursuant
to Rule 424 under the Act.

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          (c) Furnish to the selling Holders such numbers of copies of such registration statement, each
amendment thereto, the prospectus included in such registration statement (including each
preliminary prospectus), each supplement thereto and such other documents as they may reasonably
request in order to facilitate the disposition of Registrable Securities owned by them.

          (d) Use its best efforts to register and qualify the securities covered by such registration
statement under such other securities laws of such jurisdictions as shall be reasonably requested
by any selling Holder and do any and all other acts and things which may be reasonably necessary or
advisable to enable such selling Holder to consummate the disposition of the Registrable Securities
owned by such Holder in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto to qualify to transact
business or to file a general consent to service of process in any such states or jurisdictions;
and provided, further, that (anything in this Agreement to the contrary
notwithstanding with respect to the bearing of expenses) if any jurisdiction in which the
Registrable Securities shall be qualified shall require that expenses incurred in connection with
the qualification of the Registrable Securities in that jurisdiction be borne by selling
shareholders, then such expenses shall be payable by the selling Holders in that jurisdiction pro
rata, to the extent required by such jurisdiction.

          (e) Promptly notify each selling Holder of such Registrable Securities at any time when a
prospectus relating thereto is required to be delivered under the Act of the happening of any event
as a result of which the prospectus included in such registration statement contains an untrue
statement of a material fact or omits any fact necessary to make the statements therein not
misleading and promptly prepare a supplement or amendment to such prospectus and promptly provide
it to each selling Holder so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus will not contain an untrue statement of a material fact or omit to
state any fact necessary to make the statements therein not misleading.

          (f) Provide a transfer agent and registrar for all such Registrable Securities not later than
the effective date of such registration statement.

          (g) Enter into and perform its obligations under such customary agreements (including
underwriting agreements in customary form for a primary offering) and take all such other actions
as the Holders of a majority of the Registrable Securities being sold or the underwriters, if any,
reasonably request in order to expedite or facilitate the disposition of such Registrable
Securities (including, without limitation, effecting a stock split or a combination of shares).

          (h) Make available for inspection by any selling Holder of Registrable Securities, any
underwriter participating in any disposition pursuant to such registration statement and any
attorney, accountant or other agent retained by any such selling Holder or underwriter, all
material financial and other records, pertinent corporate documents and properties of the Company,
and cause the officers, directors, employees

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and independent accountants of the Company to supply
all material information reasonably requested by any such seller, underwriter, attorney, accountant
or agent in connection with such registration statement.

          (i) Promptly notify the Holders of Registrable Securities and the underwriters, if any, of the
following events and (if requested by any such person) confirm such notification in writing: (1)
the filing of the prospectus or any prospectus supplement and the registration statement and any
amendment or post-effective amendment thereto and, with respect to the registration statement or
any post-effective amendment thereto, the declaration of the effectiveness of such documents, (2)
any requests by the Commission for amendments or supplements to the registration statement or the
prospectus or for additional information, (3) the issuance or threat of issuance by the Commission
of any stop order suspending the effectiveness of the registration statement or the initiation of
any proceedings for that purpose and (4) the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation or threat of initiation of any proceeding for such purpose.

          (j) Make every reasonable effort to prevent the entry of any order suspending the
effectiveness of the registration statement and obtain at the earliest commercially practicable
moment the withdrawal of any such order, if entered.

          (k) If reasonably requested by any underwriter or a selling Holder of Registrable Securities
in connection with any underwritten offering, promptly incorporate in a prospectus supplement or
post-effective amendment such information as the underwriters or the Holders of a majority of the
Registrable Securities being sold agree should be included therein relating to the sale of the
Registrable Securities, including, without limitation, information with respect to the number of
Registrable Securities being sold to such underwriters, the purchase price being paid therefor by
such underwriters and any other terms of the underwritten (or best efforts underwritten) offering
of the Registrable Securities to be sold in such offering, and make all required filings of such
prospectus supplement or post-effective amendment promptly after being notified of the matters to
be incorporated in such prospectus supplement or post-effective amendment.

          (l) Prior to the filing of any document which is to be incorporated by reference into the
registration statement or the prospectus (after the initial filing of the registration statement
with the Commission), (i) promptly provide copies of such document to counsel for the selling
Holders of the Registrable Securities and the counsel for the underwriters, if any, (ii) make representatives of the Company reasonably
available for discussion of such document and (iii) make such changes in such document prior to the
filing thereof as counsel for such Holders or underwriters may reasonably request.

          (m) Cooperate with the selling Holders of Registrable Securities and the underwriters, if any,
to facilitate the timely preparation and delivery of

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certificates representing Registrable
Securities to be sold and not bearing any restrictive legends, and enable such Registrable
Securities to be in such lots and registered in such names as the underwriters may request at least
two (2) business days prior to any delivery of Registrable Securities to the underwriters.

          (n) Provide a CUSIP number for all Registrable Securities no later than the effective date of
the registration statement.

          (o) Prior to the effectiveness of the registration statement and any post-effective amendment
thereto and at each closing of an underwritten offering, (i) make such representations and
warranties to the selling Holders of such Registrable Securities and the underwriters, if any, with
respect to the Registrable Securities and the registration statement as are reasonably requested by
the underwriters and the Holders; (ii) obtain opinions of counsel to the Company and updates
thereof (which counsel and which opinions shall be reasonably satisfactory to the underwriters, if
any, and to the Holders of a majority of the Registrable Securities being sold) addressed to each
selling Holder and the underwriters, if any, covering the matters customarily covered in opinions
requested in underwritten offerings and such other matters as may be reasonably requested by such
Holders and underwriters or their counsel; (iii) obtain “cold comfort” letters and updates thereof
from the Company’s independent certified public accountants addressed to the selling Holders of
Registrable Securities and the underwriters, if any, such letters to be in customary form and
covering matters of the type customarily covered in “cold comfort” letters by underwriters in
connection with primary underwritten offerings; and (iv) deliver such documents and certificates as
may be reasonably requested by the Holders of a majority of the Registrable Securities being sold
and by the underwriters, if any, to evidence compliance with clause (i) above or with any customary
conditions contained in the underwriting agreement or other agreement entered into by the Company.

          (p) Otherwise use its best efforts to comply with all applicable rules and regulations of the
Commission, and make generally available to its security holders earnings statements satisfying the
provisions of Section 11(a) of the Act, no later than forty-five (45) days after the end of any
twelve (12) month period (or ninety (90) days, if such period is a fiscal year) (i) commencing at
the end of any fiscal quarter in which Registrable Securities are sold to underwriters in a firm or
best efforts underwritten offering, or (ii) if not sold to underwriters in such an offering,
beginning with the first month of the first fiscal quarter of the Company commencing after the
effective date of the registration statement, which statements shall cover such twelve (12) month
periods.

          (q) Cause such Registrable Securities to be registered to be listed on each securities
exchange or national market on which similar securities issued by the Company are then listed.

     6. Furnish Information. It shall be a condition precedent to the obligations of the
Company under Sections 2, 3 and 4 that the Holders shall furnish to the

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Company such information
regarding them, the Registrable Securities held by them, and the intended method of disposition of
such Registrable Securities as the Company shall reasonably request.

     7. [Reserved]

     8. Expenses of Registration. All expenses incurred in connection with a registration
pursuant to Sections 2, 3 and 4 (excluding underwriters’ discounts and commissions but including
the reasonable fees and expenses of one legal counsel to the Holders), including, without
limitation all registration and qualification fees, printing and accounting fees, fees and
disbursements of counsel for the Company shall be borne by the Company; provided,
however, that the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Section 2 if the registration request is subsequently withdrawn at the
request of Holders of a majority of the Registrable Securities to be registered, unless the Holders
agree to forfeit their right to a demand registration pursuant to Section 2; provided further,
however, that if there has been a material adverse event or change in the business, condition
or prospects of the Company not known to the Holders at the time of their request and such event or
change is a reason for the request to be withdrawn, then the Holders shall not be required to pay
any of the expenses for such registration and shall retain the right to require the Company to
register Registrable Securities pursuant to Section 2. Any underwriting discounts and selling
commissions in connection with a registration that the Company is not obligated to pay pursuant to
this Agreement shall be borne pro rata among the selling Holders.

     9. Underwriting Requirements; Priorities.

          (a) The Holders of a majority of the Registrable Securities included in any registration under
Sections 2 or 4 will have the right to select the investment banker(s) and manager(s) to administer
the offering, if any, subject to the approval of the Company, which will not be unreasonably
withheld. The Company will not include in any registration under Sections 2 or 4 any securities
that are not Registrable Securities without the written consent of the Holders of at least
seventy-five percent (75%) of the Registrable Securities requesting such registration. If other
securities are permitted to be included in a registration under Sections 2 and 4 that is an
underwritten offering and the managing underwriters advise the Company that in their opinion the
number of Registrable Securities and other securities requested to be included exceeds the number
of Registrable Securities and other securities that can be sold at the desired price in such
offering, the Company will include in such registration (i) first, prior to the
inclusion of any securities that are not Registrable Securities, the number of Registrable
Securities requested to be included which in the opinion of such underwriters can be sold, pro rata
among the respective Holders participating in the registration on the basis of the amount of
Registrable Securities owned and (ii) second, all other securities permitted to be included in such
registration.

          (b) The Company will have the right to select the investment banker(s) and manager(s) to
administer any offering to which Section 3 is applicable,

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subject to the approval of the Holders of
at least seventy-five percent (75%) of the Registrable Securities included in such registration,
which approval will not be unreasonably withheld. If a registration under Section 3 is an
underwritten primary registration on behalf of the Company, and the managing underwriters advise
the Company that in their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold at the desired price in such offering, the
Company will include in such registration (i) first, the securities the Company proposes to sell,
(ii) second, the Registrable Securities requested to be included in such registration by the
Holders pro rata among the Holders thereof on the basis of the number of shares requested to be
registered, and (iii) third, all other securities requested to be included in such registration;
provided however, that in no event shall the number of Registrable Securities of the
Holders included in the registration be reduced below thirty three and a third percent (33 1/3%) of
the total amount of the securities included in such registration, unless such offering is the
Initial Offering of the Company’s securities, in which case the Registrable Securities of the
Holders may be excluded entirely if the underwriters make the determination described above and no
other stockholder’s securities are included. If a registration under Section 3 is an underwritten
secondary registration on behalf of holders of securities of the Company and the managing
underwriters advise the Company that in their opinion the number of securities requested to be
included in such registration exceeds the number that can be sold at the desired price in such
offering, the Company will include in such registration (i) first, the securities requested to be
included therein by the Holders requesting such registration and by other holders of Company
securities with contractual registration rights, pro rata among the holders of such securities on
the basis of the number of shares as requested to be included therein (provided that at least fifty
percent (50%) of Registrable Securities requested to be included in such registration can be so
included), and (ii) second, other securities requested to be included in such registration. If
under clause (i) of the foregoing sentence, at least fifty percent (50%) of the Registrable
Securities requested to be included in such registration cannot be so included, no securities other
than Registrable Securities may be included in such registration.

          (c) No person may participate in any underwritten registration hereunder unless such person
(i) agrees to sell such person’s securities on the basis provided in any underwriting arrangements
containing reasonable and customary terms for transactions of that type and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents reasonably required under the term of such underwriting arrangements.

          (d) If any Holder of Registrable Securities, or a holder of other securities entitled (upon
request) to included in such Registration, disapproves of the terms of the underwriting, such
person may elect to withdraw therefrom by written notice to the Company, the underwriter and
initiating Holders delivered at least seven (7) days prior to the effective date of the
registration statement. The securities so withdrawn shall also be withdrawn from the registration
statement.

     10. Termination of the Company’s Obligations.

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          (a) The Company shall have no further obligations pursuant to Section 2 with respect to any
request or requests made by any Holder after the Company has, at the demand of the Holders pursuant
to Section 2, effected two (2) registrations statements in which registration statements have
remained effective for at least two hundred seventy (270) days or have become effective and all
Registrable Securities included in such registration statement have been sold pursuant thereto.

          (b) The Company shall have no obligation to effect more than two registrations in any
twelve-month period pursuant to Section 4.

          (c) The Company shall have no further obligation to register shares pursuant to this Agreement
as to any Holder, at such earlier time at which all Registrable Securities held by such Holder (and
any affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be
sold in any three (3) month period without registration in compliance with Rule 144 of the Act.

     11. Reports Under the 1934 Act. With a view to making available to the Holders the
benefits of Rule 144 promulgated under the Act and any other rule or regulation of the Commission
that may at any time permit a Holder to sell securities of the Company to the public without
registration, the Company shall:

          (a) make and keep public information available, as those terms are understood and defined in
Rule 144, at all times subsequent to ninety (90) days after the effective date of the first
registration statement covering a public offering filed under the Act by the Company;

          (b) file with the Commission in a timely manner all reports and other documents required of
the Company under the Act and the 1934 Act at any time after it is subject to such registration
requirements, and take any action, including the voluntary registration of its Common Stock under
Section 12 of the 1934 Act, as is necessary to enable the Holders to utilize Form S-3 for sale of
their Registrable Securities; and

          (c) furnish to any Holder at the Company’s expense so long as such Holder owns any of the
Registrable Securities forthwith upon request a written
statement by the Company that it has complied with the reporting requirements of Rule 144 (at
any time after ninety (90) days after the effective date of said first registration statement filed
by the Company), and of the Act and the 1934 Act (at any time after it has become subject to such
reporting requirements), a copy of the most recent annual or quarterly report of the Company, and
such other reports and documents so filed by the Company as may be reasonably requested by any
Holder in availing any Holder of any rule or regulation of the Commission permitting the selling of
any such securities without registration or pursuant to Form S-3.

     12. Lockup Agreement.

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          (a) Each Holder hereby agrees that it will not, without the prior written consent of the
managing underwriter, during the period commencing on the date of the final prospectus relating to
the Company’s initial public offering and ending on the date specified by the Company and the
managing underwriter (such period not to exceed one hundred eighty (180) days) (i) lend, offer,
pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose
of, directly or indirectly, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock (whether such shares or any such securities are then
owned by the Holder or are thereafter acquired), or (ii) enter into any swap or other arrangement
that transfers to another, in whole or in part, any of the economic consequences of ownership of
the Common Stock, whether any such transaction described in clause (i) or (ii) above is to be
settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing
provisions of this Section 12 shall apply only to the Company’s Initial Offering of equity
securities, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting
agreement and shall only be applicable to the Holders if all officers, directors and greater than
one percent (1%) stockholders of the Company enter into similar agreements. The underwriters in
connection with the Company’s Initial Offering are intended third party beneficiaries of this
Section 12 and shall have the right, power and authority to enforce the provisions hereof as though
they were a party hereto. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of each Holder (and the
shares or securities of every other person subject to the foregoing restriction) until the end of
such period.

          (b) The Company agrees (i) not to effect any public sale or distribution of its equity
securities, or any securities convertible into or exchangeable or exercisable for such securities,
during the seven (7) days prior to and during the one hundred eighty (180) day period beginning on
the effective date of the final prospectus related to an underwritten offering pursuant to which
Registrable Securities are to be sold under Sections 2 or 4 hereof (except a registration relating
solely to a transaction under Rule 145 under the Act (or any successor thereto) or an employee
benefit plan of the Company on Form S-8 (or any successor thereto)), unless the underwriters
managing the registered public offering and the Holders of a majority of the Registrable Securities
then outstanding otherwise agree in writing, and (ii) to use best efforts to cause each holder of
at least two percent (2%) (on a fully diluted basis) of its equity securities, or any securities
convertible into or exchangeable or exercisable for such securities, purchased from the Company at
any time after the date of this Agreement (other than in a registered public offering) to agree not
to effect any sale or distribution of any such securities during such period (except as part of
such underwritten registration, or a registration under this Agreement if otherwise permitted),
unless the underwriters managing the registered public offering and the Holders of a majority of
the Registrable Securities then outstanding otherwise agree.

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          (c) If the Company or the underwriter of any public offering of the Company’s securities
waives or terminates any standoff or lockup restrictions imposed on any holder of securities of the
Company, then such waiver or termination shall be granted to all Holders subject to standoff or
lockup restrictions pro rata based on the number of shares of Common Stock beneficially held by or
issuable to such holders. From and after the date of this Agreement, the Company shall use its
best efforts to ensure that all holders of the capital stock of the Company agree to be bound by
terms substantially similar to this Section 12.

     13. Certain Limitations in Connection with Future Grants of Registration Rights.

          (a) From and after the date of this Agreement, the Company shall not enter into any agreement
with any holder or prospective holder of any securities of the Company providing for the granting
to such holder of registration rights unless such agreement:

               (i) includes the equivalent of Section 12 of this Agreement as a term; and

               (ii) does not contain rights that are more favorable than the rights granted to the Holders of
Registrable Securities in this Agreement, including without limitation, with respect to, a
limitation on the number of securities to be included in an underwriting.

          (b) In addition to the foregoing, the Company shall not without the written consent of the
Holders of at least 66% of the outstanding Series C Preferred Stock and Series D Preferred Stock,
voting together as a class on an as-if converted basis (or Common Stock issued or issuable upon
conversion thereof), subsequently grant any holder of the Company’s securities any registration
rights, including “demand registration rights” or “piggy-back registration rights” that are senior
to or on parity with the rights granted to Holders in this Agreement.

     14. Transfer of Registration Rights. Provided that the Company is given written
notice by the Holder at the time of such transfer or promptly thereafter
stating the name and address of the transferee and identifying the securities with respect to
which the rights under this Agreement are being assigned, the registration rights under this
Agreement may be transferred in whole or in part at any time, provided that the Holder is
transferring at least 20% of the Registrable Securities held as of the date hereof.
Notwithstanding the foregoing, a Holder may transfer and assign the rights under this agreement to
a partner, retired partner, member, shareholder or affiliate of the Holder (including spouses,
ancestors, lineal descendants and siblings of such partners, members, shareholders or affiliates
who acquire Registrable Securities by gift, will or intestate succession) without limitation. As a
condition to the transfer, the transferee must sign a

12

 

counterpart signature page whereby the
transferee consents to be bound by the terms and provisions of this Agreement.

     15. Indemnification. In the event any Registrable Securities are included in a
registration statement under this Agreement:

          (a) To the full extent permitted by law, the Company will, and hereby agrees to indemnify,
defend and hold harmless each Holder requesting or joining in a registration, each director,
officer, partner, member, employee, agent for or assignee of such 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, against all expenses, losses, claims, damages or
liabilities (or actions in respect thereof), joint or several (including without limitation any of
the foregoing incurred in settlement of any litigation) directly or indirectly arising out of,
relating to or based on (i) any untrue or alleged untrue statement of any material fact contained
in any registration statement, preliminary prospectus, final prospectus, offering, circular or
other document, or any amendments or supplements thereto, (ii) any omission or alleged omission to
state therein a material fact required to be stated therein in light of the circumstances under
which they were made or necessary to make the statements therein not misleading, (iii) any
violation by the Company of any rule or regulation promulgated under the Act applicable to the
Company, or (iv) any action or inaction taken or omitted to be taken by the Company in connection
with any such registration, qualification or compliance; and will reimburse each such person or
entity for any legal or other expenses reasonably incurred by them in connection with
investigating, preparing or defending any such loss, claim, damage, liability or action,
provided, however, that the Company shall not be liable for amounts paid in
settlement of any such loss, claim, damage, liability, or action if such settlement is effected
without the prior or subsequent consent of the Company (which consent shall not be unreasonably
withheld or delayed) and the Company shall not be liable in any such case for any such loss, claim,
damage, liability or action to the extent that it arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in connection with such
registration statement, preliminary prospectus, final prospectus, or amendments or supplements
thereto, in reliance upon and in conformity with written information furnished to the Company by an
instrument duly executed by or on behalf of such Holder or underwriter and stated to be expressly
for use in connection with such registration.

          (b) To the full extent permitted by law, each Holder will, if Registrable Securities held by
such Holder are included in the securities as to which such registration is being effected pursuant
to this Agreement, severally, and not jointly, indemnify and hold harmless the Company, each of its
directors, each of its officers who have signed the registration statement, each person, if any,
who controls the Company within the meaning of the Act, each underwriter, if any, each other
selling Holder, each of its officers, directors and constituent partners, and each person, if any,
who controls such other selling Holder within the meaning of Section 15 of the Act against all
losses, expenses, claims, damages or liabilities (or actions in respect thereof) arising out of,
relating to or based on any untrue statement or alleged untrue statement of any material

13

 

fact
contained in such registration statement, including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto, or any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or alleged omission was
made in such registration statement, preliminary or final prospectus, or amendments or supplements
thereto, in reliance upon and in conformity with written information furnished to the Company by an
instrument duly executed by or on behalf of such Holder and stated to be expressly for use in
connection with such registration; and each such Holder will reimburse any legal or other expenses
reasonably incurred by the Company or any such director, officer, controlling person or underwriter
in connection with investigating or defending any such loss, claim, damage, liability or action, in
each case to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in such registration statement, preliminary or
final prospectus, or amendments or supplements thereto, in reliance upon and in conformity with
written information furnished to the Company by an instrument duly executed by or on behalf of such
Holder and stated to be expressly for use in connection with such registration;
provided, however, that the indemnity agreement contained in this Section 15(b)
shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the prior or subsequent consent of such Holder (which
consent shall not be unreasonably withheld or delayed).

     Notwithstanding anything to the contrary, in no event shall the liability of any selling
Holder of Registrable Securities hereunder be greater than the dollar amount of the net proceeds
actually received by such Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

          (c) Promptly after receipt by an indemnified party under this Section 15 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 15, notify the indemnifying party in writing
of the commencement thereof. The indemnifying party shall have the right to participate in and to
assume the defense of such claim, jointly with any other indemnifying party similarly noticed, with
counsel mutually satisfactory to the parties; provided, however, if the indemnified party believes
representation of such indemnified party by the counsel retained by the indemnifying party
would be inappropriate due to actual or potential differing interests between such indemnified
party and any other party represented by such counsel in such proceeding, the indemnified party
(together with all other indemnified parties that may be represented without conflict by one
counsel) shall have the right to retain one separate counsel (together with local counsel), with
the fees and expenses to be paid by the indemnifying party. The failure to notify an indemnifying
party promptly of the commencement of any such action shall not relieve the indemnifying party of
its obligations under this Section 15, except to the extent, but only to the extent, that the
indemnifying party is actually and materially prejudiced by such failure to give notice. No
indemnifying party in the defense of any such claim or litigation shall, except with the consent of
each indemnified

14

 

party, consent to entry of judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a complete release from all liability in respect to such claim or litigation.

          (d) If the indemnification provided for in this Section 15 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim,
damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the statements or omissions that resulted in such
loss, liability, claim, damage or expense, as well as any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the indemnifying party
or by the indemnified party and the parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission. The parties agree that it would not
be just and equitable if contributions pursuant to this Section 15(d) were to be determined pro
rata or per capita allocation or by any other method that does not take account of the equitable
considerations set forth above. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this Section 15(d) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the subject of this Section
15(d). No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. Except for the Company, the amount of such contribution shall not exceed an
amount equal to the net proceeds before expenses and commissions actually received by such
indemnifying party from the sale of securities in the offering to which the losses, claims, damages
or liabilities of the indemnified parties relate.

          (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control to the extent the indemnifying party has executed such
underwriting agreement.

          (f) The obligations of the Company and Holders under this Section 15 shall be a continuing
right to indemnification and contribution and shall survive the completion of any offering of
Registrable Securities in a registration statement under this Agreement, the expiration,
modification or termination of this Agreement, and otherwise.

15

 

     16. Delay of Registration. Neither the Company nor any 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
Agreement.

     17. Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given without the prior written consent of (a)
the Company, (b) the holders of at least a majority of the Registrable Securities held by all of
the Holders and (c) the holders of 66% of the outstanding Series C Preferred Stock and Series D
Preferred Stock, voting together as a class on an as-if converted basis; provided,
however, that in the event such amendment, modification, supplement or waiver directly and
adversely affects the rights and/or obligations of a Holder in a different manner than all other
Holders, such amendment, modification, supplement or waiver shall also require the written consent
of such adversely affected Holder, and provided further that any such amendment that lowers
an approval threshold required for some act by Holders or holders of Series C Preferred Stock and
Series D Preferred Stock shall require written consent of Holders or holders of Series C Preferred
Stock and Series D Preferred Stock, as applicable, at least a high as the original threshold. Any
such amendment, termination or waiver effected in accordance with this Section 17 shall be binding
on all parties hereto, even if they do not execute such consent. No waivers of or exceptions to
any term, condition or provision of this Agreement, in any one or more instances, shall be deemed
to be, or construed as, a further or continuing waiver of any such term, condition or provision.

     18. Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered or certified first-class mail, or courier
guaranteeing overnight delivery:

          (a) if to a Holder of Registrable Securities, at the most current address given by such Holder
to the Company in accordance with the provisions of this Section 18, which address initially is,
with respect to the Investors, the address set forth on the Exhibits A and B hereto.

          (b) if to the Company, at its address set forth on the signature page hereto or such other
address, notice of which is given in accordance with the provisions of this Section 18.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five (5) business days after being deposited in the
mail, postage prepaid by registered or certified mail; and on the next business day, if timely
delivered by a courier guaranteeing overnight delivery.

     19. Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so

16

 

executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

     20. Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     21. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware.

     22. Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby, and the parties
(or a court if the parties cannot agree) shall insert a replacement provision that is valid and
legal and that most nearly matches the parties intent of such invalid or illegal provision.

     23. Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with respect to its
securities.

     24. Prior Agreement. The Prior Agreement is hereby superseded in its entirety and
shall be of no further force and effect.

     25. Parties Benefited. Nothing in this Agreement, unless stated expressly to the
contrary, is intended to confer upon any third party any rights, remedies, obligations or
liabilities.

     26. Additional Registration Rights. Pursuant to Section 13(b), holders of at least
66% of the Series C Preferred Stock, by execution of this Agreement, hereby
acknowledge and consent to the grant by the Company to the Investors (including the New Investors)
of (a) “demand registration rights” as set forth in Section 2 of this Agreement and (b) “piggy-back
registration rights” as set forth in Section 3 of this Agreement.

     27. Attorneys Fees. In the event that any dispute among the parties to this Agreement
should result in litigation, the prevailing party in such dispute shall be entitled to recover from
the non-prevailing party all fees, costs and expenses of enforcing any right of such prevailing
party under or with respect to this Agreement, including without limitation, such reasonable fees
and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs
and expenses of appeals.

17

 

     28. Aggregation of Stock. All shares of Registrable Securities held or acquired by
affiliated entities or persons shall be aggregated together for the purpose of determining the
availability of any rights under this Agreement.

[signature page follows]

18

 

     IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first above written.

	 	 	 	 	 
	 	COMPANY:

AUTHENTEC, INC.

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Gregory Teesdale, Vice President 	 
	 	 	And Chief Financial Officer

	 
	 	Address:	P.O. Box 2719

Melbourne, Florida 32902-2719 	 
	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

19

 

	 	 	 	 	 
	 	INVESTORS:

CARLYLE VENTURE PARTNERS II, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert E. Grady 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	CVP II COINVESTMENT, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert E. Grady 	 
	 	 	Title:  	Managing Director 	 
	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

20

 

	 	 	 	 	 
	 	INVESTORS:

SIERRA VENTURES VIII-A, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey M. Drazan 	 
	 	 	Title:  	Manager
	 
	 	 	on behalf of Sierra Ventures Associates VIII, LLC

the General Partner of Sierra Ventures VIII-A, L.P. 	 
	 

	 	 	 	 	 
	 	SIERRA VENTURES VIII-B, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey M. Drazan 	 
	 	 	Title:  	Manager	 
	 	 	on behalf of Sierra Ventures Associates VIII, LLC

the General Partner of Sierra Ventures VIII-B, L.P. 	 
	 

	 	 	 	 	 
	 	SIERRA VENTURES ASSOCIATES VIII, L.L.C.,

as nominee for its members

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey M. Drazan 	 
	 	 	Title:  	Manager 	 
	 

	 	 	 	 	 
	 	SIERRA VENTURES VII, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey M. Drazan 	 
	 	 	Title:  	Manager	 
	 	 	on behalf of Sierra Ventures Associates VII, LLC

the General Partner of Sierra Ventures VII, L.P. 	 
	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

21

 

	 	 	 	 	 
	 	SIERRA VENTURES ASSOCIATES VII, L.L.C.,

as nominee for its members

 	 
	 	By:  	 	 
	 	 	Name:  	Jeffrey M. Drazan 	 
	 	 	Title:  	Manager 	 
	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

22

 

	 	 	 	 	 
	 	INVESTORS:

SILICON VALLEY BANK

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

23

 

	 	 	 	 	 
	 	INVESTORS: 

TEXAS INSTRUMENTS

INCORPORATED

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:

	 	7839 Churchill Way, MS 3995
	 

	 	Dallas, Texas 75251
	 
	 	 
	 

	 	(or)
	 
	 	 
	 

	 	P.O. Box 650311, MS 3995
	 

	 	Dallas, Texas 75265
	 
	 	 
	With copies to:
	 	 
	 

	 	Texas Instruments Incorporated
	 

	 	12500 TI Boulevard, MS 8658
	 

	 	Dallas, Texas 75243
	 
	 	 
	 

	 	(or)
	 
	 	 
	 

	 	P.O. Box 660199, MS 8658
	 

	 	Dallas, Texas 75266
	 

	 	Attention: Joseph F. Hubach
	 

	 	Facsimile No.: (214) 480-5061
	 
	 	 
	With a copy to:
	 	 
	 
	 	 
	 

	 	Weil, Gotshal & Manges LLP
	 

	 	100 Crescent Court
	 

	 	Suite 1300
	 

	 	Dallas, Texas 75201
	 

	 	Attention: R. Scott Cohen, Esq.
	 

	 	Facsimile No.: (214) 746-

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

Knickerbocker 1999 Direct

Investments LLC

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 
	 	 	 	 
	 	Address:
	240 Main Street

Gladstone, NJ 07934 	 
	 

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

Bencas Capital Partners LP

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 
	 	 	 	 
	 	Address: 	 210 Main Street, P.O. Box 478

 Gladstone, NJ 07934 	 
	 

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26

 

	 	 	 	 	 
	 	INVESTORS:

Brookline Venture Partners LLC

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Address:  	
 	 

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	 	 
	 	 	 	 
	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

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	 	INVESTORS:

BOCF, LLC

 	 
	 	By:  	

 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:

	 	1 Harbour Place, Suite 375
	 

	 	777 South Harbour Island Blvd.
	 

	 	Tampa, FL 33602

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

Royal Bank of Canada

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:

	 	4th Floor, North Tower
	 

	 	Royal Bank Plaza
	 

	 	200 Bay Street
	 

	 	Toronto, Ontario
	 

	 	M5J 2W7
	 

	 	Canada

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

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	 	INVESTORS:

Advantage Capital Florida Partners I,

Limited Partnership, a Florida

limited partnership

 	 
	 	By:  	Advantage Capital Fl-GP-I, L.L.C.,	 
	 	 	a Florida limited liability company,

its general partner
 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:

	 	100 North Tampa Street
	 

	 	Suite 2410
	 

	 	Tampa, FL 33602

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	 	INVESTORS:

China Development Industrial Bank Inc.

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:

	 	125 Nanking E. Road Sec. 5
	 

	 	Taipei Taiwan 105 R.O.C.

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

Mt. Washington Associates II, L.L.C.

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:

	 	1200 Nineteenth Street, N.W.
	 

	 	Washington, D.C. 20036-2412

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

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	 	INVESTORS:

Harris Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Gary L. McArthur 	 
	 	 	Title:  	Vice President - Corporate Development 	 
	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

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	 	INVESTORS:

J. Douglass Mullins

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

34

 

	 	 	 	 	 
	 	INVESTORS:

Finn M. W. Caspersen

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

35

 

	 	 	 	 	 
	 	INVESTORS:

Newlight Associates II, L.P.

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 	 	 
	 	Newlight Associates II (BVI), L.P.

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 	 	 
	 	Newlight Associates II-E, L.P.

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

Firsthand Technology Value Fund,

a Series of Firsthand Funds

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 	 	 
	 	INVESTORS:

Firsthand Technology Innovators Fund, a

Series of Firsthand Funds

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

W. Andrew Grubb

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

J. Douglass Mullins as Trustee under

Irrevocable Trust Agreement fbo Christine

Jennifer Mullins

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

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	 	INVESTORS:

J. Douglass Mullins as Trustee under

Irrevocable Trust Agreement fbo James

Douglass Mullins, III

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

40

 

	 	 	 	 	 
	 	INVESTORS:

W. Andrew Grubbs as Trustee
under
Irrevocable Trust Agreement fbo
Alexander McLean Grubbs

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

41

 

	 	 	 	 	 
	 	INVESTORS:

W. Andrew Grubbs as Trustee
under
Irrevocable Trust Agreement fbo
James William Grubbs

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

42

 

	 	 	 	 	 
	 	INVESTORS:

Community Foundation of Brevard

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

43

 

	 	 	 	 	 
	 	INVESTORS:

SOUNDVIEW TECHNOLOGY

 	 
	 	By:  	 	 

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Title:  	
 	 

	 	 	 
	Address:

	 	One Market Steuart Tower, 3rd Floor

	 

	 	San Francisco, CA 94105

SIGNATURE PAGE TO AUTHENTEC, INC.

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

44

 

SCHEDULE
A

SCHEDULE OF EXISTING HOLDERS

China Development Industrial Bank Inc.

Knickerbocker 1999 Direct Investments LLC

Bencas Capital Partners LP

Brookline Venture Partners LLC

BOCF, LLC

Royal Bank of Canada

Advantage Capital Florida Partners I

Limited Partnership, A Florida Limited Partnership

Texas Instruments Incorporated

SEE SIGNATURE PAGE FOR ADDRESSES

Mt. Washington Associates LLC

1200 Nineteenth Street, N.W.

Washington, D.C.

20036-2412

SIERRA VENTURES VIII-A, L.P.

on behalf of Sierra Ventures Associates VIII, LLC the General

Partner of Sierra Ventures VIII-A, L.P.

SIERRA VENTURES VIII-B, L.P.

on behalf of Sierra Ventures Associates VIII, LLC the General

Partner of Sierra Ventures VIII-B, L.P.

SIERRA VENTURES ASSOCIATES VIII, L.L.C.,

as nominee for its members

SIERRA VENTURES VII, L.P.

on behalf of Sierra Ventures Associates VII, LLC the

General Partner of Sierra Ventures VII, L.P.

SIERRA VENTURES ASSOCIATES VII, L.L.C.,

45

 

as nominee for its members

Finn M. W. Caspersen

J. Douglass Mullins

Newlight Associates II, L.P.

Newlight Associates II (BVI), L.P.

Newlight Associates II-E, L.P.

Firsthand Technology Value Fund, a series of Firsthand Funds

Firsthand Technology Innovators Fund, a series of Firsthand Fund

Harris Corporation

W. Andrew Grubbs

J. Douglass Mullins as Trustee under Irrevocable Trust

Agreement fbo Christine Jennifer Mullins

J. Douglass Mullins as Trustee under Irrevocable Trust

Agreement fbo James Douglass Mullins, III

W. Andrew Grubbs as Trustee under Irrevocable Trust

Agreement fbo Alexander McLean Grubbs

W. Andrew Grubbs as Trustee under Irrevocable Trust

Agreement fbo James William Grubbs

Community Foundation of Brevard

46

 

SCHEDULE
B

SCHEDULE OF NEW HOLDERS

Carlyle Venture Partners II, L.P.

CVP II Coinvestments, L.P.

47EX-10.2 FORM OF INCENTIVE STOCK OPTION GRANT

 

EXHIBIT 10.2

 

 

AuthenTec, Inc.

Stock Option Certificate

THIS CERTIFIES THAT           (the “Employee”) has been awarded under the AuthenTec, Inc.
2004 Stock Incentive Plan (the “Plan”), incentive stock options (each, an “Option” or collectively,
the “Options”) to purchase           shares of Common Stock, par value $0.01 per share (“Common
Stock”) of AuthenTec, Inc., a Delaware corporation (the “Company”), at a price of $  per share
(the “Exercise Price”). This Certificate constitutes part of and is subject to the terms and
provisions of the attached Incentive Stock Option Grant Agreement (the “Agreement”), which is
incorporated by reference herein.

			
	Grant Date:
	 	Initial Vesting Date:                                   

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
prior to the tenth anniversary of the Initial Vesting Date (the “Expiration Date”), unless fully
exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the vesting
schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	25% of the Options vest and become exercisable on the first anniversary
of the Initial Vesting Date, and
	 
	 	(b)	 	1/48th of the Options vest and become exercisable on the
date one month after the first anniversary date of the Initial Vesting Date and
on such date every month thereafter, through the fourth anniversary of the
Initial Vesting Date.

The extent to which the Options are vested and exercisable as of a particular vesting date is
rounded down to the nearest whole share. However, vesting is rounded up to the nearest whole share
on the fourth anniversary of the Initial Vesting Date.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on this            day of

	 	 	 	 	 
	 	AUTHENTEC, INC.:

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

The undersigned hereby acknowledges that he/she has carefully read the attached Agreement and the
Plan and agrees to be bound by all of the provisions set forth in such documents.

	 	 	 	 	 
	 	EMPLOYEE:

 	 
	 	 	 
	 
	 	Date:  	 	 
	 

	 	 	 
	Enclosures:

	 	Incentive Stock Option Grant Agreement

AuthenTec, Inc. 2004 Stock Incentive Plan

Stock Restriction Agreement

Exercise Form

 

 

Incentive Stock Option Grant Agreement

Under The

AuthenTec, Inc. 2004 Stock Incentive Plan

          1. Terminology.     All capitalized words that are not defined in this Agreement have the
meanings ascribed to them in the Plan. For purposes of this Agreement, the terms below have the
following meanings:

               (a)     “Cause” has the meaning ascribed to such term or words of similar import in the Employee’s
written employment or service contract with the Company and, in the absence of such agreement or
definition, means the Employee’s (i) material breach of any written employment, consulting,
advisory, proprietary information, nondisclosure or other agreement with the Company and his or her
subsequent failure to cure such breach to the satisfaction of the Board within thirty (30) days
following written notice of such breach to the Employee by the Company; (ii) conviction of, or
entry of a plea of guilty or nolo contendere to, a felony or any misdemeanor involving moral
turpitude if the Board reasonably determines that such conviction or plea materially adversely
affects the Company; (iii) commission of an act of fraud or dishonesty by the Employee if the Board
reasonably determines that such act materially adversely affects the Company; or (iv) intentional
damage or destruction of substantial property of the Company. The determination of “cause” shall
be made by the Board and its determination shall be final and conclusive.

               (b)     “Change in Control” means: the earliest to occur of (i) a merger or consolidation to
which the Company is a party and which results in, or is effected in connection with, a change in
ownership of a majority of the outstanding shares of voting stock of the Company, (ii) any sale or
transfer of all or substantially all of the assets of the Company to an unaffiliated third party,
(iii) the sale by the stockholders of the Company of a majority of the voting stock of the Company
to an unaffiliated third party or (iv) a liquidation or dissolution of the Company.

               (c)     “Company” includes AuthenTec, Inc. and its Affiliates, except where the context otherwise
requires.

               (d)     “Good Reason” has the meaning ascribed to such term or words of similar import in the
Employee’s written employment or service contract with the Company and, in the absence of such
agreement or definition, means any of the following that occurs coincident with or following a
Change in Control, if not cured and corrected by the Company or its successor within 10 business
days after written notice thereof by the Employee to the Company or its successor: (i) any change
in the Employee’s title or position that constitutes a material diminution in authority as compared
to the authority of the Employee’s title or position immediately prior to the occurrence of the
Change in Control; (ii) any material reduction in the Employee’s annual base salary as in effect on
the effective date of the Change in Control; (iii) a substantial diminution in the Employee’s
duties and responsibilities (other than a change due to the Employee’s Total and Permanent
Disability or as an accommodation under the Americans With Disabilities Act); or (iv) any
requirement that the Employee relocate, by more than 100 miles, the principal location from which
he performs services for the Company as compared to such location immediately prior to the
occurrence of the Change in Control; provided, however, that no diminution of
title, position, duties or responsibilities shall be deemed to occur solely because the Company
becomes a subsidiary of another corporation or entity or because there has been a change in the
reporting hierarchy incident thereto involving the Employee.

 

 

               (e)     “Option Shares” mean the shares of Common Stock underlying the Options.

               (f)     “Total and Permanent Disability” means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether the Employee is totally and permanently disabled will be
final and binding on all parties concerned.

          2. Vesting.

               (a)     The Options vest in accordance with the vesting schedule identified in the Stock Option
Certificate which is attached hereto and constitutes a part of the Agreement (the “Vesting
Schedule”), so long as the Employee is in the continuous employ of, or in a service relationship
with, the Company from the Grant Date through the applicable date upon which vesting is scheduled
to occur. No vesting will accrue to any Options after the Employee ceases to be in either an
employment or other service relationship with the Company.

               (b)     Except to the extent that the Options have earlier terminated or become fully vested,
including by way of the provisions of Section 10(c) of this Agreement, the lesser of 25% of the
Options or the remaining unvested Options shall become vested upon the termination date of the
Employee’s employment or other service relationship with the Company if (i) the Company or its
successor terminates the Employee without Cause or the Employee terminates with Good Reason, and
(ii) such termination occurs coincident with or within one year following a Change in Control.

               (c)     Unless the Options have earlier terminated, if before the Employee has vested in any
Options, his or her employment or other service relationship with the Company terminates due to
death or Total and Permanent Disability, then as of such termination a number of Options will be
vested equal to (i) the total number of Options granted under this Agreement as specified on the
Stock Option Certificate, multiplied by (ii) 25%, multiplied by (iii) a fraction, the numerator of
which is the total number of days measured from the Employee’s date of hire to the date that the
employment or other service relationship ceased and the denominator of which is 365.

          3. Exercise of Options.

               (a)     Right to Exercise. The Employee may exercise the Options to the extent vested at
any time on or before the Expiration Date or the earlier termination of the Options, unless
otherwise provided in this Agreement. Section 4 below describes certain limitations on exercise of
the Options that apply in the event of the Employee’s death, Total and Permanent Disability, or
termination of employment or other service relationship with the Company. The Options may be
exercised only in multiples of whole shares and may not be exercised at any one time as to fewer
than one hundred shares (or such lesser number of shares as to which the Options are then
exercisable). No fractional shares will be issued under the Options.

               (b)     Exercise Procedure. In order to exercise the Options, the following items must be
delivered to the Secretary of the Company before the expiration or termination of the Options: (i)
an exercise notice, in such form as the Administrator may require from time to time, specifying the
number of Option Shares to be purchased, (ii) full payment of the Exercise Price for such Option
Shares or properly executed, irrevocable instructions, in such form as the Administrator may
require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance
with Section 3(c) of this Agreement, and (iii) an executed copy of any other

-3-

 

agreements requested by the Administrator pursuant to Section 3(d) of this Agreement. An
exercise will not be effective until all of the foregoing items are received by the Secretary of
the Company.

               (c)     All Shares acquired by the Optionee upon exercise of the Option, whether before or after
termination of the Optionee’s employment with the Company or a related corporation, and all other
Shares or other securities of the Company issued as a dividend on such Shares or as a result of a
stock split, recapitalization or similar transaction shall be considered acquired upon exercise of
the Option and shall be subject to and Optionee agrees:

     a.     that all Shares shall be deposited in and made subject to the terms and
conditions of that certain Voting Trust Agreement in the form attached hereto as
Exhibit B (the “Voting Trust Agreement”) to be held for the benefit of the Optionee
pursuant to the terms thereof; and

     b. in addition to any other legend required by law or agreement, each
certificate evidencing the Shares now or hereafter owned by the Optionee, his or
her successors, and assigns, shall be stamped or otherwise imprinted with a legend
to the following effect:

SALE, TRANSFER, OR HYPOTHECATION OF THE SHARES REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED BY THE PROVISIONS OF THE EMPLOYEE STOCK OPTION
AGREEMENT AMONG THE UNDERSIGNED AND THE COMPANY, A COPY OF WHICH MAY BE
INSPECTED AT THE PRINCIPAL OFFICE OF THE COMPANY, AND ALL THE PROVISIONS
OF WHICH ARE INCORPORATED BY REFERENCE IN THIS CERTIFICATE. THE AGREEMENT
PROVIDES, AMONG OTHER THINGS, FOR TRANSFER RESTRICTIONS AND SUBJECTS THE
SHARES TO A VOTING TRUST AGREEMENT BY ACCEPTING THE SHARES OF STOCK
EVIDENCED BY THIS CERTIFICATE THE HOLDER OF THIS CERTIFICATE AGREES TO BE
BOUND BY SAID AGREEMENTS.

               A copy of this Agreement shall be delivered to the Secretary of the Company, and shall be
shown to any shareholder making inquiry about it.

               (d)     Method of Payment. Payment of the Exercise Price may be made by delivery of cash,
certified or cashier’s check, money order or other cash equivalent acceptable to the Administrator
in its discretion, a broker-assisted cashless exercise in accordance with Regulation T of the Board
of Governors of the Federal Reserve System through a brokerage firm approved by the Administrator,
or a combination of the foregoing. In addition, payment of the Exercise Price may be made by any
of the following methods, or a combination thereof, as determined by the Administrator in its
discretion at the time of exercise:

     (i) by tender (via actual delivery or attestation) to the Company of other shares of
Common Stock of the Company which have a Fair Market Value on the date of tender equal to
the Exercise Price, provided that such shares have been owned by the
Employee for a period of at least six months free of any substantial risk of forfeiture or
were purchased on the open market without assistance, direct or indirect, from the Company;

     (ii) by withholding of Option Shares otherwise issuable pursuant to the exercise which
have a Fair Market Value on the date of exercise equal to the Exercise Price; or

     (iii) by any other method approved by the Administrator.

-4-

 

               (e)     Agreement by Employee to Execute Other Agreements. The Employee hereby agrees to
execute, as a condition precedent to the exercise of the Options and at any time thereafter as may
reasonably be requested by the Administrator, a Voting Trust Agreement, substantially in the form,
and containing the terms and provisions, of the Voting Trust Agreement attached hereto as Exhibit
B, with respect to any Option Shares acquired by the Employee pursuant to this Agreement;
provided, however, that execution of the Voting Trust Agreement will not be
required upon any exercise of the Options that occurs after the closing of the first public
offering of capital stock of the Company that is effected pursuant to a registration statement
filed with, and declared effective by, the Securities and Exchange Commission under the Securities
Act of 1933 or, if later, the expiration of any market stand-off agreement that applies to other
shareholders of the Company respecting such public offering of capital stock.

               (f)     Issuance of Shares upon Exercise. Upon exercise of the Options in accordance with
the terms of this Agreement, the Company will issue to the Employee, the brokerage firm specified
in the Employee’s delivery instructions pursuant to a broker-assisted cashless exercise, or such
other person exercising the Options, as the case may be, the number of shares of Common Stock so
paid for, in the form of fully paid and nonassessable stock. The Company will deliver stock
certificates for the Option Shares as soon as practicable after exercise, which certificates will,
unless such Option Shares are registered or an exemption from registration is available under
applicable federal and state law, bear a legend restricting transferability of such shares and
referencing any applicable Stock Restriction Agreement.

          4. Termination of Employment or Service.

               (a)     Exercise Period Following Cessation of Employment or Other Service Relationship, In
General. If the Employee ceases to be employed by, or in a service relationship with, the
Company for any reason other than death, Total and Permanent Disability, or discharge for Cause,
(i) the unvested Options, after giving effect to the provisions of Section 2 of this Agreement,
terminate immediately upon such cessation, and (ii) the vested Options remain exercisable during
the 90-day period following such cessation, but in no event after the Expiration Date. Unless
sooner terminated, the vested Options terminate upon the expiration of such 90-day period.

               (b)     Disability of Employee. Notwithstanding the provisions of Section 4(a) above, if
the Employee ceases to be employed by, or in a service relationship with, the Company as a result
of the Employee’s Total and Permanent Disability, (i) the unvested Options, after giving effect to
the provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii)
the vested Options remain exercisable during the one-year period following such cessation, but in
no event after the Expiration Date. Unless sooner terminated, the vested Options terminate upon
the expiration of such one-year period.

               (c)     Death of Employee. If the Employee dies prior to the expiration or other
termination of the Options, (i) the unvested Options, after giving effect to the provisions of
Section 2 of this Agreement, terminate immediately upon the Employee’s death, and (ii) the vested
Options remain exercisable during the one-year period following the Employee’s death, but in no
event after the Expiration Date, by the Employee’s executor, personal representative, or the
person(s) to whom the Options are transferred by will or the laws of descent and distribution.
Unless sooner terminated, the vested Options terminate upon the expiration of such one-year period.

               (d)     Misconduct. Notwithstanding anything to the contrary in this Agreement, the
Options terminate in their entirety, regardless of whether the Options are vested, immediately upon
the Employee’s discharge of employment or other service relationship for Cause or upon the
Employee’s commission of any of the following acts during any period following the cessation of
employment or other service relationship during which the Options otherwise would be

-5-

 

 exercisable: (i) fraud on or misappropriation of any funds or property of the Company, or (ii)
breach by the Employee of any provision of any employment, non-disclosure, non-competition,
non-solicitation, assignment of inventions, or other similar agreement executed by the Employee for
the benefit of the Company, as determined by the Administrator, which determination will be
conclusive.

               (e)     Change in Status. If the Employee’s relationship with the Company ceases to be a
“common law employee” relationship but the Employee continues to provide bona fide services to the
Company following such cessation in a different capacity, including without limitation as a
director, consultant or independent contractor, then a termination of employment or other service
relationship shall not be deemed to have occurred for purposes of this Section 4 upon such change
in relationship. Notwithstanding the foregoing, the Options shall not be treated as incentive
stock options within the meaning of Code section 422 with respect to any exercise that occurs more
than three months after such cessation of the common law employee relationship (except as otherwise
permitted under Code section 421 or 422).

          5. Non-Competition.

               (a)     During Employee’s term of employment with the Company and for twelve (12) months after
termination thereof, whether with or without cause, Employee will not directly or indirectly (i) as
an individual proprietor, partner, stockholder, officer, employee, director, joint venturer,
investor, lender, or in any other capacity whatsoever (other than as the holder of not more than
five percent (5%) of the total outstanding stock of a publicly-held company), engage in any
business activity that directly competes with the Company, or is based on technology of the kind or
type acquired, developed or being developed, produced, marketed, distributed, planned, furnished or
sold by the Company while Employee was employed by the Company; (ii) recruit, solicit or induce, or
attempt to induce, any employees of the Company to terminate their employment with, or otherwise
cease their relationship with, the Company; or (iii) solicit, divert, reduce, take away, or attempt
to divert, reduce or take away, the business or patronage (with respect to products or services of
the kind or type developed, produced, marketed, furnished or sold by the Company) of any of the
Company’s clients, customers, or accounts, or prospective clients, customers or accounts, that were
contacted, solicited or served by Employee while employed by the Company.

               (b)     Employee acknowledges that the covenant in Section 5(a) has a unique, very substantial and
immeasurable value to the Company. Employee acknowledges and agrees that the products and services
developed by the Company are or are intended to be marketed and licensed to customers worldwide.
Employee further acknowledges and agrees to the reasonableness of this covenant not to compete and
the reasonableness of the geographic area and duration of time which are a part of said covenant.
Employee also acknowledges and agrees that this covenant will not prevent Employee from becoming
gainfully employed, or otherwise earning a livelihood following termination of employment with the
Company.

          6. Market Stand-Off Agreement. The Employee agrees that following the effective date
of a registration statement of the Company filed under the Securities Act of 1933, the Employee,
for the duration specified by and to the extent requested by the Company and an underwriter of
Common Stock or other securities of the Company, shall not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any equity securities of the Company, or any
securities convertible into or exchangeable or exercisable for such 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 of the 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

-6-

 

other arrangement, in each case during the seven days prior to and the 180 days after the
effectiveness of any underwritten offering of the Company’s equity securities (or such longer or
shorter period as may be requested in writing by the managing underwriter and agreed to in writing
by the Company) (the “Market Stand-Off Period”), except as part of such underwritten registration
if otherwise permitted. In addition, the Employee agrees to execute any further letters,
agreements and/or other documents requested by the Company or its underwriters which are consistent
with the terms of this Section 5. The Company may impose stop-transfer instructions with respect
to securities subject to the foregoing restrictions until the end of such Market Stand-Off Period.

          7. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during the lifetime of the Employee, the Options
may be exercised only by the Employee or, during the period the Employee is under a legal
disability, by the Employee’s guardian or legal representative. Except as provided above, the
Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.

          In the event the employment or other service relationship of the Employee with the Company or
a related corporation is terminated for Cause, the Company shall have an irrevocable exclusive
option for a period ending 60 days after such termination to repurchase any or all Shares acquired
upon exercise of the Option and held by the Employee at such time at a price equal to the original
price per Option Share paid by the Employee (as adjusted for subsequent stock splits, stock
dividends or similar transactions).

          8. Qualified Nature of the Options. The Options are intended to qualify as incentive
stock options within the meaning of Code section 422 (“Incentive Stock Options”), to the fullest
extent permitted by Code section 422, and this Agreement shall be so construed. Pursuant to Code
section 422(d) the aggregate fair market value (determined as of the Grant Date) of shares of
Common Stock with respect to which all Incentive Stock Options first become exercisable by the
Employee in any calendar year under the Plan or any other plan of the Company (and its parent and
subsidiary corporations, within the meaning of Code section 424(e) and (f), as may exist from time
to time) may not exceed $100,000 or such other amount as may be permitted from time to time under
Code section 422. To the extent that such aggregate fair market value exceeds $100,000 or other
applicable amount in any calendar year, such stock options will be treated as nonstatutory stock
options with respect to the amount of aggregate fair market value thereof that exceeds the Code
section 422(d) limit. For this purpose, the Incentive Stock Options will be taken into account in
the order in which they were granted. In such case, the Company may designate the shares of Common
Stock that are to be treated as stock acquired pursuant to the exercise of Incentive Stock Options
and the shares of Common Stock that are to be treated as stock acquired pursuant to nonstatutory
stock options by issuing separate certificates for such shares and identifying the certificates as
such in the stock transfer records of the Company.

          Notwithstanding anything herein to the contrary, if the Employee owns, directly or indirectly
through attribution, stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or of any of its subsidiaries (within the meaning of Code section
424(f)) on the Grant Date, then the Exercise Price is the greater of (a) the Exercise Price stated
on the Stock Option Certificate which is attached hereto and constitutes a part of this Agreement
or (b) 110% of the Fair Market Value of the Common Stock on the Grant Date, and the Expiration Date
is the last business day prior to the fifth anniversary of the Grant Date.

          Code section 422 provides additional limitations respecting the treatment of these Options as
Incentive Stock Options.

-7-

 

          9. Notice of Disqualifying Disposition. If the Employee makes a disposition (as that
term is defined in Code section 424(c)) of any Option Shares acquired pursuant to these Options
within two years of the Grant Date or within one year after the Option Shares are transferred to
the Employee, the Employee agrees to notify the Administrator of such disposition in writing within
30 days of the disposition.

          10. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, the Employee hereby authorizes withholding
from payroll or any other payment of any kind due the Employee and otherwise agrees to make
adequate provision for foreign, federal, state and local taxes required by law to be withheld, if
any, which arise in connection with the Options (including upon a disqualifying disposition within
the meaning of Code section 421(b)). The Company may require the Employee to make a cash payment
to cover any withholding tax obligation as a condition of exercise of the Options or issuance of
share certificates representing Option Shares.

          The Administrator may, in its sole discretion, permit the Employee to satisfy, in whole or in
part, any withholding tax obligation which may arise in connection with the Options either by
electing to have the Company withhold from the shares to be issued upon exercise that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a Fair
Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due.

          11. Adjustments for Corporate Transactions and Other Events.

               (a)     Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the Common Stock, the number of shares covered by and
the exercise price and other terms of the Options, shall, without further action of the Board, be
adjusted to reflect such event unless the Board determines, at the time it approves such stock
dividend, stock split or reverse stock split, that no such adjustment shall be made. The
Administrator may make adjustments, in its discretion, to address the treatment of fractional
shares and fractional cents that arise with respect to the Options as a result of the stock
dividend, stock split or reverse stock split.

               (b)     Non-Change in Control Transactions. Except with respect to the transactions set
forth in Section 10(a), in the event of any change affecting the Common Stock, the Company or its
capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part of a transaction resulting
in a Change in Control, the Administrator, in its discretion and without the consent of the
Employee, shall make any adjustments in the Options, including but not limited to modifying the
number, kind and price of securities subject to the Options.

               (c)     Change in Control Transactions. In the event of any transaction resulting in a
Change in Control, the Options will terminate upon the effective time of any such Change in Control
unless provision is made in connection with the transaction in the sole discretion of the parties
thereto for the continuation or assumption of the Options, or the substitution of the Options with
new options of the surviving or successor entity or a parent thereof. In the event of such
termination, (A) the outstanding Options that will terminate upon the effective time of the Change
in Control shall become fully vested immediately before the effective time of the Change in
Control, and (B) the Employee will be permitted, immediately before the Change in Control, to
exercise all portions of such Options that are then exercisable or which become exercisable upon or
prior to the effective time of the Change in Control. If, immediately before the Change in
Control, no stock of the Company is readily tradeable on an established securities market or
otherwise, and the vesting of the Options pursuant to this Section 10(c) would be treated as a
“parachute payment” (as defined in section 280G of the Code), then such Options shall not vest

-8-

 

unless the requirements of the shareholder approval exemption of section 280G(b)(5) of the
Code have been satisfied with respect to such Options.

               (d)     Adjustments for Unusual Events. The Administrator is authorized to make, in its
discretion and without the consent of the Employee, adjustments in the terms and conditions of, and
the criteria included in, the Options in recognition of unusual or nonrecurring events affecting
the Company, or the financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Administrator determines that
such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Options or the Plan.

               (e)     Binding Nature of Adjustments. Adjustments under this Section 10 will be made by
the Administrator, whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. No fractional shares will be issued pursuant to the
Options on account of any such adjustments. The terms and conditions of this Agreement shall apply
with equal force to any additional and/or substitute securities received by the Employee pursuant
to this Section 10 in exchange for, or by virtue of the Employee’s ownership of, the Options or the
Option Shares, except as otherwise determined by the Administrator.

          12. Confidential Information. In consideration of the Options granted to the Employee
pursuant to this Agreement, the Employee agrees and covenants that, except as specifically
authorized by the Company, the Employee will keep confidential any trade secrets or confidential or
proprietary information of the Company which are now or which hereafter may become known to the
Employee as a result of the Employee’s employment by or other service relationship with the
Company, and shall not at any time, directly or indirectly, disclose any such information to any
person, firm, Company or other entity, or use the same in any way other than in connection with the
business of the Company, at all times during and after the Employee’s employment or other service
relationship. The provisions of this Section 11 shall not narrow or otherwise limit the
obligations and responsibilities of the Employee set forth in any agreement of similar import
entered into between the Employee and the Company.

          13. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement shall alter the at-will or other employment status or other service relationship of the
Employee, nor be construed as a contract of employment or service relationship between the Company
and the Employee, or as a contractual right of Employee to continue in the employ of, or in a
service relationship with, the Company for any period of time, or as a limitation of the right of
the Company to discharge the Employee at any time with or without cause or notice and whether or
not such discharge results in the failure of any Options to vest or any other adverse effect on the
Employee’s interests under the Plan.

          14. No Rights as a Stockholder. The Employee shall not have any of the rights of a
stockholder with respect to the Option Shares until such shares have been issued to him or her upon
the due exercise of the Options. No adjustment shall be made for dividends or distributions or
other rights for which the record date is prior to the date such shares are issued.

          15. The Company’s Rights. The existence of the Options shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

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          16. Employee. Whenever the word “Employee” is used in any provision of this Agreement
under circumstances where the provision should logically be construed, as determined by the
Administrator, to apply to the estate, personal representative, or beneficiary to whom the Options
may be transferred by will or by the laws of descent and distribution, the word “Employee” shall be
deemed to include such person.

          17. Notices. All notices and other communications made or given pursuant to this
Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed
by certified mail, addressed to the Employee at the address contained in the records of the
Company, or addressed to the Administrator, care of the Company for the attention of its Corporate
Secretary at its principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission mechanism as may be available to
the parties.

          18. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the Options granted hereunder. Any oral or written agreements,
representations, warranties, written inducements, or other communications made prior to the
execution of this Agreement with respect to the Options granted hereunder shall be void and
ineffective for all purposes.

          19. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the Options or Option Shares as determined in
the discretion of the Administrator, except as provided in the Plan or in a written document signed
by each of the parties hereto.

          20. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.

          21. Governing Law. The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Administrator relating to this Agreement, and the rights of
any and all persons having or claiming to have any interest under this Agreement, shall be
determined exclusively in accordance with the laws of the State of Delaware, without regard to its
provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in the federal or state courts in the districts which include the city and
state in which the principal offices of the Company are located, and the Employee hereby agrees and
submits to the personal jurisdiction and venue thereof.

          22. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

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EXHIBIT A

EXERCISE FORM

Administrator of 2004 Stock Incentive Plan

c/o Office of the Corporate Secretary

AuthenTec, Inc.

709 S. Harbor City Blvd., Suite 400

Melbourne, FL 32901

Gentlemen:

          I hereby exercise the Options granted to me on __________________, ___, by AuthenTec, Inc.
(the “Company”), subject to all the terms and provisions of the applicable grant agreement and of
the AuthenTec, Inc. 2004 Stock Incentive Plan (the “Plan”), and notify you of my desire to purchase
______shares of Common Stock of the Company at a price of $______ per share pursuant to
the exercise of said Options.

          This will confirm my understanding with respect to the shares to be issued to me by reason of
this exercise of the Options (the shares to be issued pursuant hereto shall be collectively
referred to hereinafter as the “Shares”) as follows:

               (a)     I am purchasing the Shares for my own account for investment only, and not with a view to,
or for sale in connection with, any distribution of the Shares in violation of the Securities Act
of 1933 (the “Securities Act”), or any rule or regulation under the Securities Act.

               (b)     I understand that the Shares are being issued without registration under the Securities
Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is
based in part on the above representation. I also understand that the Company is not obligated to
comply with the registration requirements of the Securities Act or with the requirements for an
exemption under Regulation A under the Securities Act for my benefit.

               (c)     I have had such opportunity as I deemed adequate to obtain from representatives of the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company.

               (d)     I have sufficient experience in business, financial and investment matters to be able to
evaluate the risks involved in the purchase of the Shares and to make an informed investment
decision with respect to such purchase.

               (e)     I can afford a complete loss of the value of the Shares and am able to bear the economic
risk of holding such Shares for an indefinite period.

               (f)     I understand that (i) the Shares have not been registered under the Securities Act and are
“restricted securities” within the meaning of Rule 144 under the Securities Act; (ii) the Shares
cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under
the Securities Act or an exemption from registration is then available and, therefore, they may
need to be held indefinitely; and (iii) there is now no registration statement on file with the
Securities and Exchange Commission with respect to any stock of the Company and the Company has no
obligation or current intention to register the Shares under the Securities Act. As a condition to
any transfer of the Shares, I understand that the Company may require an opinion of counsel
satisfactory to the Company to the effect that such transfer does not require registration under
the Securities Act or any state securities law.

 

 

          (g) I understand that the certificates for the Shares to be issued to me will bear a legend
substantially as follows:

The shares of stock represented by this certificate are subject to restrictions on
transfer, an option to purchase and a market stand-off agreement set forth in a
certain Stock Restriction Agreement between the corporation and the registered owner
of this certificate (or his predecessor in interest), and no transfer of such shares
may be made without compliance with that Agreement. A copy of that Agreement is
available for inspection at the office of the corporation upon appropriate request and
without charge.

The securities represented by this stock certificate have not been registered under
the Securities Act of 1933 (the “Act”) or applicable state securities laws (the “State
Acts”), and shall not be sold, pledged, hypothecated, donated, or otherwise
transferred (whether or not for consideration) by the holder except upon the issuance
to the corporation of a favorable opinion of its counsel and/or submission to the
corporation of such other evidence as may be satisfactory to counsel for the
corporation, to the effect that any such transfer shall not be in violation of the Act
and the State Acts.”

Appropriate stop transfer instructions will be issued by the Company to its transfer agent.

               (h)     I am a party to a grant agreement and a stock restriction agreement with the Company,
pursuant to which I have agreed to certain restrictions on the transferability of the Shares and
other matters relating thereto.

			
	Total Amount Enclosed: $	 	

 

 

			
	Date:	 	

 

 

(Employee)

 

Received by AUTHENTEC, INC. on

_________________________, __________

	 	 	 	 
	 	 
	By:  	 
 	 
	 	 	 
	 	 	 
	 

 

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EXHIBIT B

VOTING TRUST AGREEMENT

          THIS AGREEMENT, dated this ___day of _________, 20___, by and between the undersigned
parties to create a Voting Trust of the stock of AuthenTec, Inc., a Delaware corporation,
hereinafter referred to as the “Company.”

ARTICLE I

CONSIDERATION AND PURPOSE OF TRUST

          1.01 Consideration. In consideration of their mutual promises contained within that certain
Stock Option Agreement by and between AuthenTec, Inc., and the undersigned and other good and
valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned
hereby agrees to enter into this Voting Trust Agreement.

          1.02 Purpose of Trust. The parties enter into this Voting Trust Agreement for the purpose of
concentrating the vote of the shares represented under this Agreement in the hands of the Voting
Trustee and to provide a clear and definite policy of management to guide the discretion of the
Voting Trustee.

ARTICLE II

PARTIES AND EFFECTIVE DATE

          2.01 Parties. The parties to this Agreement are:

          (1) ____________, owner of ____________(______) shares of common stock of the
Company, hereinafter called “Shareholder” before Voting Trust Certificates are issued to him and a
“Voting Trust Certificate Holder” after Voting Trust Certificates are issued to him.

          (2) F. Scott Moody or such other appointee as from time to time selected by the Board of
Directors pursuant to Section 3.04 (hereinafter called the “Trustee”).

          2.02 Effective Date. This Voting Trust Agreement shall become effective when signed by
Shareholder and the Trustee in accordance with Section 9.08.

 

 

ARTICLE III

TRUSTEE AND DEPOSITARY

          3.01 Number and Term of Trustee. There shall be one (1) Trustee of this trust. The first
Trustee shall be F. Scott Moody and his successor(s) shall be appointed as provided in Section
3.04. The Trustee shall serve for such term of this trust in the absence of his resignation or
death.

          3.02 Death of Trustee. The rights and duties of the Trustee shall terminate upon death and no
interest in any of the property owned or held by the trust nor any of the rights or duties of the
Trustee may be transferred by will, devise, succession, or in any manner except as provided in this
Agreement.

          3.03 Resignation. The Trustee may resign by giving sixty (60) days notice of resignation to
Shareholder and to the Company.

          3.04 Successor Trustee; Removal.

          (1) In the event of the death, resignation, removal, or incapacity to act of any Trustee, a
successor or successors shall be appointed by the Board of Directors of the Company representing at
least a majority of the Board of Directors of the Company, regardless of whether said shareholders
are parties to this Agreement.

          (2) Any trustee under this Agreement may be removed by an affirmative vote of the majority of
the then members of the Board of Directors of the Company.

ARTICLE IV

DEPOSITS AND TRANSFER OF SHARES — ISSUANCE AND TRANSFER OF VOTING

TRUST CERTIFICATES

          4.01 Deposit of Shares. On the execution of this Agreement, Shareholder shall deposit with
the Trustee share certificates for all shares of the Company issued to Shareholder from the
exercise of options pursuant to that certain Stock Option Agreement granted to Shareholder under
the AuthenTec, Inc. 1998 Stock Option Plan, as amended and restated from time to time. All these
share certificates shall be endorsed in blank or to the Trustee, and be accompanied by instruments
of transfer reasonably requested by Trustee including but not limited to Stock Power in the form
attached hereto as Attachment A, which will enable the Trustee to cause the share certificates to
be transferred to the name of the Trustee.

          4.02 Transfer of Shares to Trustee. All share certificates of the Company delivered to the
Trustee shall be surrendered by the Trustee to the Company in return for new share certificates to
be issued in the name of the Trustee. The new share certificates shall state that they are issued
pursuant to this Agreement, and in the entry of ownership of the shares by the Trustee in the stock
transfer records of the Company that fact shall also be noted.

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          4.03 Transfer of Shares to Successor Trustee. Despite any changes in the Trustee, the
certificates for shares standing in the name of the Trustee may be endorsed and transferred by any
successor Trustee with the same effect as if endorsed and transferred by the Trustee who has ceased
to act. The Trustee is authorized and empowered to cause any further transfer of the shares to be
made which may be necessary because of any change of persons holding the office of Trustee.

          4.04 No Sale of Shares. Notwithstanding the provisions of paragraph 4.01, the Trustee shall
have no authority to sell or otherwise dispose of or encumber any of the stock deposited pursuant
to the provisions of this Agreement.

          4.05 Voting Trust Certificate. On receipt by the Trustee of the share certificates and
transfer of them into the name of the Trustee, the Trustee shall hold the share certificates
subject to the terms of this Agreement, and the Trustee shall issue and deliver to Shareholder a
Voting Trust Certificate, in substantially the form of Attachment “A,” attached hereto.

          4.06 Transfer of Voting Trust Certificates. The Voting Trust Certificate shall not be
transferable by Shareholder except upon the issuance to the Company of a favorable opinion of
counsel for Shareholder in the form acceptable to Company or the submission to the Company of such
other evidence as may be satisfactory to Company and its counsel, in either case to the effect that
any such transfer shall not be in violation of the Securities Act of 1933, as amended, and
applicable state securities laws.

          Further, transfer of the Voting Trust Certificates and the rights evidenced thereby shall be
subject to all the transfer restrictions set forth in that certain Employee Option Agreement
related to the shares subject to this Voting Trust Agreement by and between undersigned and Company
including but not limited those set forth in Sections 6 and 7. The terms of such Employee Option
Agreement are hereby incorporated by this reference.

          All transfers shall be recorded in the Certificate Book and any transfer made of any Voting
Trust Certificate shall vest in the transferee all rights of the transferor and shall subject the
transferee to the same limitations as those imposed on the transferor by the terms of the Voting
Trust Certificate and this Agreement. The Trustee shall deliver the Voting Trust Certificate to
the transferee for the number of shares represented by the Voting Trust Certificate so transferred.

          4.07 Proof of Ownership. The Trustee shall not be required to recognize any transfer of a
Voting Trust Certificate not made in accordance with the provisions of this Agreement unless the
persons claiming ownership shall have produced indicia of title satisfactory to the Trustee, and
shall have deposited with the Trustee indemnity satisfactory to him.

          4.08 Holder of Certificate as Owner. The Trustee may treat the Voting Trust Certificate
Holders as the absolute owners and holders of the Voting Trust Certificates and as having all the
rights and interests represented by them for all purposes, and the Trustee shall not be bound or
affected by any notice to the contrary.

          4.09 Replacement of Certificates. If a Voting Trust Certificate shall become mutilated or be
destroyed, stolen or lost, the Trustee, in his discretion, may issue a new Voting Trust Certificate
of like tenor and denomination in exchange and substitution for and on cancellation

-3-

 

of the mutilated Voting Trust Certificate, or in substitution for the Certificate so
destroyed, stolen, or lost. The applicant for a substituted Voting Trust Certificate shall furnish
to the Trustee evidence of the destruction, theft, or loss of the Certificate satisfactory to him
in his discretion. The applicant shall also furnish indemnity satisfactory to the Trustee and to
his agent.

ARTICLE V

VOTING AND ACTION BY TRUSTEE

          5.01 Voting of Shares. While the Trustee holds shares transferred pursuant to the provisions
of this Agreement, he shall possess, subject to this Agreement, the right to exercise in person, or
by his nominees, agents, attorneys-in-fact, or proxies, all rights and powers of absolute owners
for the purposes of this Agreement and to vote or assent the Shares with respect thereto and to
take part in and consent to any shareholders’ action in proportion to the vote of all other shares
on any matter brought before the stockholders for a vote. In the event the Trustee receives
dividends and distributions, said dividends and distributions shall be made in accordance with
Article VI, hereof.

          No other person shall have any voting rights in respect to the Shares so long as this
Agreement is in effect.

          5.02 Any Trustee, its employees or agents and any firm or corporation of which it may be a
member, agent, or employee and any corporation, trust, or association of which it may be a trustee,
stockholder, director, officer, agent, or employee may contract with or be or become interested in
a pecuniary manner, directly or indirectly, in any matter or transaction to which the Company or
any subsidiary or controlled or affiliated corporation may be a party or in which it may be
concerned, as fully and freely as though the Trustee were not a Trustee hereunder. The Trustee,
his employees, or agents may act as directors or officers of the Company or of any subsidiary or
controlled or affiliated corporation.

          5.03 Compensation of Trustee. The Trustee shall serve without compensation.

          5.04 Expenses. The Trustee is expressly authorized to incur and pay those reasonable charges
and expenses that he may deem necessary and proper for administering this Agreement and loan
documents. The Company shall reimburse and indemnify the Trustee for all expenses incurred by him
in connection with the discharge of his duties under this Agreement.

          5.05 Trustee’s Liability. The Trustee shall be free from liability in acting upon any paper,
document, or signature reasonably believed by him to be genuine and to have been signed by the
proper party. The Trustee shall not be liable for any error of judgment in good faith and with due
diligence, nor for any act done or omitted, nor for any mistake of fact or law, nor for anything
which he may do or refrain from doing in good faith with due diligence, except that the Trustee
shall be liable for his own neglect or malfeasance.

-4-

 

ARTICLE VI

DIVIDEND, DISTRIBUTION, SUBSCRIPTION RIGHTS OF CERTIFICATE HOLDERS

          6.01 Cash Dividends. Each Voting Trust Certificate Holder shall be entitled to receive from
time to time payments equal to the amount of cash distributions and/or dividends, if any, collected
or received by the Trustee on the shares in regard to which Voting Trust Certificates were issued,
less the deductions provided for in paragraph 6.04. These payments shall be made, as soon as
practicable after the receipt of the distributions/dividends, to the Voting Trust Certificate
Holders at the close of business on the record date determined pursuant to the provisions of
paragraph 6.05.

          6.02 Distributions on Liquidation. In the event of the dissolution or total or partial
liquidation of the Company, the Trustee shall receive the moneys, securities, rights, or property
to which Shareholders of the Company are entitled, and shall distribute it among the Voting Trust
Certificate Holders in proportion to their interests, as shown by the books of the Trustee. The
Trustee may withhold therefrom the deductions provided for in paragraph 6.04.

          6.03 Other Distributions to Shareholders. If at any time during the continuation of this
Agreement the Trustee shall receive or collect any moneys through a distribution by the Company to
its Shareholders, other than in payment of cash distributions/dividends, or shall receive any
property (other than shares of stock of the Company) through a distribution by the Company to its
Shareholders, the Trustee shall distribute it to the Voting Trust Certificate Holders registered as
such at the close of business on the record date determined pursuant to the provisions of paragraph
6.05. The Trustee may withhold therefrom the deductions provided for in Paragraph 6.04.

          6.04 Deductions for Distributions. There shall be deducted and withheld from every
distribution of every kind under this Agreement any taxes, assessments, or other charges that may
be required by law to be deducted or withheld, as well as expenses and charges incurred pursuant to
paragraph 5.06, to the extent that the expenses and charges are not reimbursed or remain unpaid.

          6.05 Record Date for Distributions. The Trustee may, if he deems it advisable, fix a date not
exceeding twenty (20) days preceding any date for the payment or distribution of dividends or for
the distribution of assets or rights as a record date for the determination of the Voting Trust
Certificate Holders entitled to receive the payment or distribution, and the Voting Trust
Certificate Holders of record on that date shall be exclusively entitled to participate in the
payments or distributions. If the Trustee fails to fix a record date, the date three (3) days
prior to the date of payment or distribution of dividends or the distribution of assets or rights
shall constitute the record date for the determination of the Voting Trust Certificate Holders
entitled to receive the payment or distribution.

          6.06 Subscription Rights. If any securities of the Company shall be offered for subscription
to the Voting Trust Certificate Holders, the Trustee, promptly on receipt of notice of the offer,
shall mail a copy of the notice to the Voting Trust Certificate Holder of record. On receipt by
the Trustee, at least thirty (30) days prior to the last date fixed by the Company for
subscription, of a request from the Voting Trust Certificate Holder to be subscribed in his behalf,
accompanied by the sum of money required to be paid for the securities, the Trustee shall make

-5-

 

the subscription and payment on behalf of the Voting Trust Certificate Holder. On receiving
from the Company the certificate for the securities subscribed for, the Trustee shall issue to the
Voting Trust Certificate Holder a Voting Trust Certificate; if they are securities other than
shares, then the Trustee shall deliver the same to the Voting Trust Certificate Holder.

ARTICLE VII

BOOKS AND RECORDS

          7.01 Record of Shares. It shall be the duty of the Trustee to maintain a record of all share
certificates of the Company transferred to the Trustee, indicating the name in which the stock was
held, the date of issuance of the stock, the class and series of the stock, the number of shares,
and the number of the certificates representing those shares. The Trustee shall also maintain a
record of the date on which any share certificates were received by him, the date on which they
were delivered to the corporation for transfer to the Trustee and shall obtain a receipt for any
certificates so delivered. The Trustee shall receive and hold the new share certificates issued by
the corporation in the name of the Trustee and shall maintain a record indicating the date of
issuance of the certificates, the date of receipt of the certificates, and the place in which the
certificates are held by him.

          7.02 Record of Trust Certificates. The Trustee shall maintain a record showing the names and
addresses of the Voting Trust Certificate Holders. The record shall show the number of
Certificates held by each person. The record shall show the dates on which the Voting Trust
Certificates were issued, cancelled, transferred, or replaced. The record shall be known as the
Certificate Record Book and shall be open to inspection by any of the parties to this Agreement or
their successors at any reasonable time. The record shall show any subsequent transfer,
assignment, pledge, attachment, execution, and any other matter affecting the title to the Voting
Trust Certificates which comes to the attention of the Trustee. Any documents purporting to affect
the title of the Voting Trust Certificates shall also be kept in the Certificate Record Book,
together with a sample copy of the Voting Trust Certificate.

          7.03 Other Records. The Trustee shall maintain such other books and records and shall perform
the duties required of him to be performed elsewhere in this Agreement.

          7.04 Inspection of Records. The parties to this Agreement shall deposit a counterpart of this
Agreement with the Company at its principal office and the Agreement shall be subject to the same
right of examination by a Shareholder of the Company, in person or by agent or attorney, as are the
books and records of the Company, and shall be subject to examination by any holder of a beneficial
interest in the voting trust, either in person or by agent or attorney, at any reasonable time for
any proper purpose.

ARTICLE VIII

TERM OF TRUST

          8.01 Irrevocability of Trust. The Trust created by this Agreement is expressly declared to be
irrevocable, except as otherwise provided in this Agreement.

-6-

 

          8.02 Termination. This Agreement shall automatically terminate upon the earlier of the
following:

          (1) The liquidation of the Company; or

          (2) Ten (10) years after the date hereof; or

          (3) Upon the closing of a firm commitment underwritten public offering of shares of the
Company’s common stock described in Section II of the Certificate of Incorporation of the
Company.

          8.03 Return of Share Certificates After Termination. Within thirty (30) days after the
termination of this Agreement, the Trustee shall transfer to the Voting Trust Certificate Holders
share certificates representing the number of shares in respect of which the Voting Trust
Certificates were issued on the surrender of the Voting Trust Certificates properly endorsed and on
payment by the persons entitled to receive the share certificates of a sum sufficient to cover any
governmental charges on the transfer or delivery of the share certificates.

          8.04 Final Accounting. Within ninety (90) days after termination of this Trust, the Trustee
shall render a final accounting to the Voting Trust Certificate Holders and to the Company and
shall distribute any funds or other assets held by him to the parties entitled thereto.

ARTICLE IX

MISCELLANEOUS

          9.01 Place of Performance. This Agreement is made, executed, and entered into at Melbourne,
Florida, and it is mutually agreed that the performance of all parts of this contract shall be made
at Melbourne, Florida.

          9.02 Governing Law. This Agreement is intended by the parties to be governed and construed in
accordance with the laws of the State of Delaware and venue is agreed to be in Brevard County,
Florida.

          9.03 Severability of Provisions. This Agreement shall not be severable or divisible in any
way but it is specifically agreed that, if any provision should be held invalid, the invalidity
shall not affect the validity of the remainder of the Agreement.

          9.04 Notice to Trustee . Any notice to be given to the Trustee under this Agreement shall be
sufficiently given if mailed to the Trustee at P.O Box 2719, Melbourne, Florida 32902, or at such
other address as the Trustee may from time to time designate by written notice given to the Voting
Trust Certificate Holders.

          9.05 Notice to Voting Trust Certificate Holders. Any notice to be given to a Voting Trust
Certificate Holder shall be sufficiently given if delivered personally, or mailed by certified

-7-

 

mail, return receipt requested, to him at the address of the Voting Trust Certificate Holder
appearing on the Certificate Book to be maintained by the Trustee. Every notice given pursuant
hereto shall be effective whether or not received and shall be deemed as given on the date of
mailing thereof.

          9.06 Meetings of Voting Trust Certificate Holders. The Trustee may call a meeting of the
Voting Trust Certificate Holders at any time by providing written notice fourteen (14) days prior
to such meeting. The notice shall contain a statement of the matters to be discussed at the
meeting.

          9.07 Execution of Counterparts. This Agreement shall be prepared in multiple copies and
forwarded to each of the parties for execution. This Agreement shall become effective at the time
provided in paragraph 2.02. All of the signatures may be affixed to one copy or to separate
copies, and when all copies are received and signed by all the parties, they shall constitute one
Agreement which is not otherwise separable or divisible.

          9.08 Amendment of Agreement. If at any time the Trustee deems it advisable to amend this
Agreement, he shall submit the amendment to the Voting Trust Certificate Holders of the then
outstanding Voting Trust Certificates for their approval at a special meeting of Voting Trust
Certificate Holders which shall be called for that purpose. Notice of the time and place of the
meeting shall be given in the manner provided in paragraph 9.07, and shall contain a copy of the
proposed amendment. If at the meeting or any adjournment thereof the proposed amendment shall be
approved by the affirmative vote of the majority of the Voting Trust Certificate Holders, the
proposed amendment so approved shall become a part of this Agreement as if originally incorporated
herein.

          9.09 Advice of Counsel. Each of the parties agrees and represents that he has been
represented by his own counsel with regard to the execution of this Agreement or that, if acting
without counsel, he has had adequate opportunity and has been encouraged to take the advice of his
own counsel prior to the execution of this Agreement.

          9.10 Share Certificates. Each certificate representing shares held by any of the parties to
this Agreement shall contain a statement that the shares represented by the certificate are subject
to the provisions of a Voting Agreement.

          Execution. Executed on ___, 200___, at ___, Florida.

Trustee:

 

 

F. Scott Moody, Trustee

 

 

 

 

(Name)

 

 

(SS#)

Witnesses:

 

 

 

 

 

 

 

 

 

 

-8-

 

Attachment A

          THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED PURSUANT TO AN INVESTMENT REPRESENTATION
ON THE PART OF THE VOTING TRUST CERTIFICATE HOLDER HEREOF AND SHALL NOT BE SOLD, PLEDGED,
HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED, WHETHER OR NOT FOR CONSIDERATION, BY THE VOTING
TRUST CERTIFICATE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS
COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO SUCH
COUNSEL, IN EITHER CASE TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

VOTING TRUST CERTIFICATE

          THIS IS TO CERTIFY that the undersigned Trustee has received a Certificate or Certificates
issued in the name of __________________________, evidencing the ownership of ___
(___) shares of common stock of AuthenTec, Inc. (“Company”), a Delaware corporation, and
that the shares are held subject to all the terms and conditions of that Agreement, dated
___, 200___, by and between F. SCOTT MOODY, as Trustee, and certain Shareholders of
AuthenTec, Inc. During the term of the Voting Trust, the Trustee shall possess and be entitled to
exercise the absolute right to vote and otherwise represent the shares of the Shareholders of the
Company pursuant and subject to the terms and conditions of the Voting Trust Agreement. It is
expressly understood and agreed that no voting rights shall pass to the holder by virtue of the
ownership of this Trust Certificate. Upon the termination of the Trust, this Certificate shall be
surrendered to the Trustee by the holder upon delivery to that holder of a stock certificate
representing a like number of shares.

          IN
WITNESS WHEREOF, the undersigned Trustee have executed this
Certificate on ____________________,
20___.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	F. Scott Moody, Trustee 	 
	 	 	 
	 

-9-

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