Document:

exv10w3

EXHIBIT 10.3

SiGe Semiconductor, Inc.

a Delaware corporation

2002 STOCK PLAN

As
originally adopted January 21, 2003,

effective December 20, 2002

and Amended and Restated August 20, 2004

 

 

SIGE SEMICONDUCTOR INC.

2002 STOCK PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	1.
	 	Purpose	 	 	3	 
	2.
	 	Definitions	 	 	3	 
	3.
	 	Awards	 	 	6	 
	4.
	 	Effective Date	 	 	6	 
	5.
	 	Stock Covered by the Plan	 	 	7	 
	6.
	 	Administration	 	 	7	 
	7.
	 	Eligible Recipients	 	 	9	 
	8.
	 	Duration of the Plan	 	 	9	 
	9.
	 	Terms and Conditions of Awards	 	 	9	 
	10.
	 	Restrictions on Incentive Options	 	 	14	 
	11.
	 	Dissolution or Liquidation	 	 	15	 
	12.
	 	Adjustment in Shares	 	 	15	 
	13.
	 	Acquisition Events	 	 	15	 
	14.
	 	Investment Representations; Transfer Restrictions	 	 	16	 
	15.
	 	Lock-up Agreement	 	 	17	 
	16.
	 	Securities Law Compliance	 	 	17	 
	17.
	 	Termination or Amendment of Plan	 	 	17	 

 

 

SiGe Semiconductor, Inc.

a Delaware corporation

2002 Stock Plan

	1.	 	Purpose.
	 
	 	 	The purpose of this SiGe Semiconductor, Inc. 2002 Stock Plan (the “Plan”) is to advance the
interests of SiGe Semiconductor, Inc., a Delaware corporation (the “Company”), by (i)
strengthening the ability of the Company to attract, retain and motivate key employees,
directors, consultants and other individual contributors of or to the Company or any present
or future parent or subsidiary of the Company (together with the Company, the “Company
Group”) by providing them with an opportunity to purchase stock of the Company and thereby
permitting them to share in the Company’s success and (ii) further aligning such persons’
interests with those of the Company’s other stockholders through compensation that is based
on the Company’s Common Stock.
	 
	 	 	All capitalized terms not defined herein shall have the meaning set forth in Section 2 of
this Plan.

	2.	 	Definitions.

	 	(a)	 	“Acquisition Event” has the meaning set forth in Section 13 below.
	 
	 	(b)	 	“Affiliated Entity” means a person or company that is deemed to be an affiliated
entity of the Company pursuant to Section 1.1 of MI 45-105.
	 
	 	(c)	 	“Associate” has the meaning given to the term “associate” in Section 1(1) of the
OSA.
	 
	 	(d)	 	“Award” means any award or benefit granted under the Plan, including, without
limitation, the grant of Options (including Incentive Options or Nonqualified
Options), Purchase Authorizations and Stock Bonuses.
	 
	 	(e)	 	“Board” means the Board of Directors of the Company.
	 
	 	(f)	 	“Canadian Subsidiary” means SiGe Semiconductor Inc., a corporation formed
under the laws of Canada.
	 
	 	(g)	 	“Code” means the U.S. Internal Revenue Code of 1986, as heretofore and hereafter
amended, and the regulations promulgated thereunder.
	 
	 	(h)	 	“Committee” has the meaning set forth in Section 6 below.
	 
	 	(i)	 	“Common Stock” has the meaning set forth in Section 5 below.

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	 	(j)	 	“Company” and “Company Group” have the meanings set forth in Section 1 above.
	 
	 	(k)	 	“Consultant” means (i) in respect of a resident of Ontario an individual (A.) that
is engaged to provide on a bona fide basis consulting, technical, management or other
services to the Company (or to an Affiliated Entity) under a written contract between
the Company (or the Affiliated Entity) and the individual and a Consultant Company or
Consultant Partnership of the individual, and (B.) in the reasonable opinion of the
Board, spends or will spend a significant amount of time and attention on the affairs
and business of the Company (or an Affiliated Entity), and (ii) in respect of a
resident of a jurisdiction other than Ontario, any person who is determined by the
Board, having regard to applicable securities laws, to be a consultant of or other
contributor to any member of the Company Group.
	 
	 	(1)	 	“Consultant Company” means, for an individual Consultant, a company of which the
individual Consultant is an employee or shareholder.
	 
	 	(m)	 	“Consultant Partnership” means, for an individual consultant, a partnership of which
the individual Consultant is an employee or partner.
	 
	 	(n)	 	“Convertible Security” means a security of an issuer that is convertible into, or
carries the right of the holder to purchase or otherwise acquire, or of the Company to
cause the purchase or acquisition of, a security of the issuer.
	 
	 	(o)	 	“Director” means a director of the Company or an Affiliated Entity.
	 
	 	(p)	 	“Disability” has the meaning set forth in Section 22(e)(3) of the Code.
	 
	 	(q)	 	“Distribution” has the meaning given to the term “distribution” in Section 1(1) of
the OSA and includes a deemed distribution under applicable Ontario securities laws.
	 
	 	(r)	 	“Effective Date” has the meaning set forth
in Section 4 below.
	 
	 	(s)	 	“Employee” means:

	 	(i)	 	in respect of a resident of Ontario, an employee of the Company or an Affiliated
Entity;
	 
	 	(ii)	 	in respect of a U.S. resident, an “employee” as
defined in Section 3401(c)
of the Code; and
	 
	 	(iii)	 	in respect of a resident of any jurisdiction other than the U.S. or
Ontario, a person who is determined by the Board, having regard to applicable
securities laws, to be an employee of any member of the Company Group.

	 	(t)	 	“Event” has the meaning set forth in Section 11 below.

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	 	(u)	 	“Exchangeable Security” means a security of the issuer that is exchangeable for, or
carries the right of the holder to purchase or otherwise acquire, or of the issuer to cause
the purchase or acquisition of, a security of another issuer.
	 
	 	(v)	 	“Exchange Act” means the U.S. Securities Exchange Act of 1934, as heretofore and hereafter
amended.
	 
	 	(w)	 	“Executive” means an officer of the Company or of an Affiliated Entity or a director of the
Company or an Affiliated Entity.
	 
	 	(x)	 	“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

	 	(i)	 	If the Common Stock is listed on any established stock exchange or a national
market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, or the Toronto Stock Exchange, its Fair
Market Value shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system (or, if such stock is listed
on more than one such exchange or system, the exchange or system on which the highest
volume of shares were traded) for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or such other source as the Board
deems reliable;
	 
	 	(ii)	 	If the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, the Fair Market Value of a share of Common Stock shall
be the mean between the high bid and low asked prices for the Common Stock on the last
market trading day prior to the day of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable; or
	 
	 	(iii)	 	In the absence of an established market for the Common Stock, the Fair Market
Value shall be determined in good faith by the Board.

	 	(y)	 	“Incentive Option” has the meaning set forth in Section 3 below.
	 
	 	(z)	 	“Listed Issuer” has the meaning given to the term “listed issuer” in MI 45-105.
	 
	 	(aa)	 	“MI 45-105” means Multilateral Instrument 45-105 (Trades to Employees, Senior Officers,
Directors, and Consultants), as heretofore and hereafter amended.
	 
	 	(bb)	 	“Multiple Convertible Security” means a security of an issuer that is convertible into, or
exchangeable for, or carries the right of the holder to purchase or otherwise acquire, or of
the issuer to cause the purchase or acquisition of, a convertible security, an exchangeable
security or another multiple convertible security.
	 
	 	(cc)	 	“Nonqualified Option” has the meaning set forth in Section 3 below.
	 
	 	(dd)	 	“Option” has the meaning set forth in Section 3 below.

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	 	(ee)	 	“OSA” means the Securities Act (Ontario), as heretofore and hereafter amended.
	 
	 	(ff)	 	“Participant” has the meaning set forth in
Section 7 below.
	 
	 	(gg)	 	“Plan” has the
meaning set forth in Section 1 above.

	 	(i)	 	“Purchase Authorization” has the meaning set forth in Section 3 below.

	 	(hh)	 	“Related Person” means (i) a director or senior officer of the Company, or (ii) an
Associate of a director or senior officer of the Company.
	 
	 	(ii)	 	“Service” means the performance of work as an Employee, Director or Consultant.
	 
	 	(jj)	 	“Share Compensation Arrangement” means a compensation or incentive arrangement for
an Executive or a plan provide for compensation or incentive arrangements for an
Executive.
	 
	 	(kk)	 	“Shares” means shares of Common Stock.
	 
	 	(11)	 	“Stock Bonus” has the meaning set forth in Section 3 below.
	 
	 	(mm)	 	“Subsidiary” has the meaning set forth in Section 424(f) of the Code.

	3.	 	Awards.
	 
	 	 	The Board intends to achieve the Plan objectives by granting:

	 	(a)	 	options (“Options”), that, in the case of Participants that are resident in the
United States or are otherwise subject to taxation as U.S. residents, shall be (A.) incentive
stock options (“Incentive Options”), which are intended to qualify under the
provisions of Section 422 of the Code (as hereinafter defined) or (B.) non-statutory
stock options (“Nonqualified Options”), which are not intended to meet the
requirements of Section 422 of the Code and which are intended to be taxed upon
exercise under Section 83 of the Code (both Incentive Options and Nonqualified
Options are included in the definition of “Options”);
	 
	 	(b)	 	stock purchase authorizations (“Purchase Authorizations”); and/or
	 
	 	(c)	 	stock bonus awards (“Bonuses”).

	4.	 	Effective Date.
	 
	 	 	This Plan was adopted by the Board on January 21, 2003. The Effective Date of the Plan is
December 20, 2002.
	 
	 	 	Notwithstanding the foregoing, no Incentive Options shall be granted under this Plan unless
the stockholders of the Company shall have approved this Plan within twelve (12) months before
or after the Effective Date.

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	5.	 	Stock Covered by the Plan.
	 
	 	 	The shares of the Common Stock, US$0.0001 par value of the
Company (the “Common Stock”), for which Awards may be granted under the Plan shall be subject to the following:

	 	(a)	 	The maximum number of shares of Common Stock that may be delivered to
Participants under the Plan shall be Thirty-Five Million Five Hundred Thirty-Six
Thousand Nine Hundred Eighty-Two (35,536,982) shares of Common Stock.
	 
	 	(b)	 	If any shares of Common Stock covered by an Award are not delivered to a
Participant because the Award is forfeited or canceled, or the shares of Common
Stock are not delivered because they are used to satisfy the applicable tax withholding
obligation as permitted under Section 9(f) hereof, such shares shall not be deemed to
have been delivered for purposes of determining the maximum number of shares of
Common Stock available for delivery under the Plan.
	 
	 	(c)	 	If the exercise price of any Option granted under the Plan is satisfied by
tendering shares of Common Stock to the Company (by either actual delivery or by attestation),
only the number of shares of Common Stock issued net of the shares of Common
Stock tendered shall be deemed delivered for purposes of determining the maximum
number of shares of Common Stock available for delivery under the Plan.
	 
	 	(d)	 	The number of shares of Common Stock available for Awards under the Plan is
subject to adjustment as provided in Sections 11 and 12 below.
	 
	 	(e)	 	The shares underlying Awards under this Plan may, in whole or in part, be either
authorized but unissued Shares or issued Shares reacquired by the Company.

	6.	 	Administration.

	 	(a)	 	The Plan will be administered by the Board.
	 
	 	(b)	 	To the extent permitted by applicable law, the Board may delegate any or all of
its powers under the Plan to one or more committees or subcommittees
of the Board (a “Committee”). Different Committees with respect to different groups of Participants
may administer the Plan. If and when the Common Stock is registered under the
Exchange Act, then:

	 	(i)	 	to the extent that the Board determines it to be desirable to
qualify Options granted hereunder as “performance-based compensation” within the
meaning of Section 162(m) of the Code, the Plan shall be administered by a
Committee of two or more “outside directors” within the meaning of Section 162(m)
of the Code or otherwise meeting the requirements of Section 162(m) at such time;
and
	 
	 	(ii)	 	to the extent desirable to qualify transactions hereunder as exempt
under Rule 16b-3 of the Exchange Act, the transactions contemplated hereunder
shall be structured to satisfy the requirements for exemption under
Rule 16b-3.

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	 	(c)	 	To the extent permitted by applicable law, the Board may delegate to one or more
executive officers of the Company the power to make Awards and exercise such other
powers under the Plan as the Board may determine, provided that the Board shall fix
the maximum number of shares subject to Awards and the maximum number of
shares for any one Participant to be made by such executive officers.
	 
	 	(d)	 	All references in the Plan to the “Board” shall mean the Board or a Committee of the
Board or the executive officer referred to in Section 6(b) to the extent that the Board’s
power or authority under the Plan has been delegated to such Committee or executive
officer.
	 
	 	(e)	 	The Board shall have the authority, subject to the express provisions of the Plan, to
construe the Plan and the respective Awards and related agreements; to prescribe,
amend and rescind rules and regulations relating to the Plan; to determine the terms,
conditions, performance criteria (if any), restrictions and provisions of the respective
Awards and related agreements; to modify or amend any award (subject to Section
17(a)) hereof), including to accelerate the vesting, waive forfeiture provisions and
extend the post-termination exercisability periods of Awards; and to make all other
determinations in the judgment of the Board necessary or desirable for the
administration of the Plan. The Board may correct any defect or supply any omission
or reconcile any inconsistency in the Plan or in any Award or related agreement in the
manner and to the extent it shall deem expedient to carry the Plan into effect, and it
shall be the sole and final judge of such expediency. No member of the Board or any
person acting pursuant to the authority delegated by the Board hereunder shall be
liable for any action or determination relating to or under the Plan made in good faith.
All decisions by the Board shall be made in the Board’s sole discretion and shall be
final and binding on all persons having or claiming any interest in the Plan or in any
Award.
	 
	 	(f)	 	The Board shall have the authority to create and authorize one or more sub-plans
(each, a “Sub-Plan”, and collectively, the
“Sub-Plans”) for the purpose of granting
Awards under the Plan in compliance with the applicable tax, securities and other
legal and regulatory requirements of any particular jurisdiction and/or to the extent
necessary to qualify any Awards for favorable tax treatment under the laws of any
particular jurisdiction. Any Award granted pursuant to a Sub-Plan shall be subject to
all of the terms and conditions of the Plan, except to the extent specified in the Sub-
Plan and related agreement entered into by the Company pursuant thereto. No Sub-
Plan shall have the effect of increasing any maximum number of shares of Common
Stock that may be delivered to Participants under the Plan (including, for greater
certainty, any Sub-Plan) pursuant to Section 5(a) hereof. The creation and
authorization of a Sub-Plan shall not require further action on the part of the
stockholders of the Company unless required by Section 17 of the Plan. Unless the
context requires otherwise, references in the Plan to the term “Plan” shall include any
and all Sub-Plans in effect at the applicable time.

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	7.	 	Eligible Recipients.
	 
	 	 	Subject to the restrictions of Section 5 above, Awards may be granted to such
Employees, Directors or Consultants of any member of Company Group, including without
limitation members of any advisory boards if and to the extent such persons qualify as
“Consultants” as such term is defined herein, as are selected by the Board (any such
Employee, Director or Consultant being referred to herein as a
“Participant”); provided,
that:

	 	(a)	 	Only Employees of the Company Group shall be eligible for grants of Incentive
Options; and
	 
	 	(b)	 	the Company shall not make any Award to a registrant (as such term is defined in
the
OSA) who is a Consultant if such Award would be in connection with services
provided by the registrant relating to a Distribution.

	8.	 	Duration of the Plan.
	 
	 	 	This Plan shall terminate ten (10) years from the Effective Date hereof, unless
terminated earlier pursuant to Section 17 below, and no Awards may be granted or made
thereafter; provided, however, that in the event of Plan termination, the Plan shall
nonetheless remain in effect for all other purposes as long as any Awards under it are
outstanding with respect to such Awards.
	 
	9.	 	Terms and Conditions of Awards.
	 
	 	 	Awards granted under this Plan shall be evidenced by grant forms or agreements in
such form and containing such terms and conditions as the Board shall determine; provided,
however, that such grant form or agreement shall evidence among their terms and conditions
the following:

	 	(a)	 	Price. Unless otherwise determined by the Board, the purchase price per
Share payable upon the exercise or purchase of each Award granted or made hereunder
shall be determined in accordance with the following:

	 	(i)	 	Subject to Section 9(l)(i) below, if applicable, the purchase price
per Share payable upon the exercise of each Incentive Option granted hereunder
shall not be less than the Fair Market Value per Share on the day the Incentive
Option is granted.
	 
	 	(ii)	 	The purchase price per Share payable upon the exercise of each Option
granted to any person who is not a non-resident of Canada for the purposes of the
Income Tax Act (Canada) shall be not less than the Fair Market Value per Share on
the date the Option is granted.
	 
	 	(iii)	 	The purchase price per Share payable upon the exercise of each
Nonqualified Option granted hereunder or upon the award of Shares pursuant to each
Purchase Authorization made hereunder shall be not less than eight-five percent
(85%) of the Fair Market Value per Share on the date of grant or award.

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	 	(iv)	 	Notwithstanding the foregoing, Options and Purchase Authorizations may be
granted or awarded with a per Share exercise price of less than the Fair Market
Value per Share on the date of grant or award pursuant to a merger or similar
corporate transaction.
	 
	 	(v)	 	No Share shall be issued for less than its par value, if any.
	 
	 	(vi)	 	Stock Bonuses shall be issued in consideration of Services previously
rendered, which shall be valued for such purposes by the Board.

	 	(b)	 	Number of Shares. Each grant form or agreement shall specify the number of
Shares to which it pertains.
	 
	 	(c)	 	Term of Option. The term of each Option shall be the term stated in the grant
form
or agreement; provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof or five (5) years in the case of Incentive Options to
which 

Section 9(1) applies.
	 
	 	(d)	 	Exercise of Options. Each Option shall be exercisable for the full amount or for
any
part thereof and at such intervals or in such installments as the Board may determine
at the time it grants such Option. An Option or Purchase Authorization shall be
exercisable only by delivery of a written notice to the Company’s CFO, or any other
employee of the Company designated by the Board to accept such notices on its
behalf, specifying the number of Shares for which such Award is exercised and
accompanied by either:

	 	(i)	 	payment or,
	 
	 	(ii)	 	if permitted by the Board, irrevocable instructions to a broker to
promptly deliver to the Company full payment in accordance with Section
9(e)(iii)II below of the amount necessary to pay the aggregate exercise price.
With respect to an Incentive Option, the permission of the Board referred to in
clause (ii) of the preceding sentence must be granted at the time the Incentive
Option is granted.

	 	(e)	 	Payment. Payment shall be made in full:

	 	(i)	 	at the time the Option is exercised, or
	 
	 	(ii)	 	promptly after the Participant forwards the irrevocable instructions
referred to in Section 9(d)(ii) above to the appropriate broker, if exercise of
an Option is made pursuant to Section 9(d)(ii) above, or
	 
	 	(iii)	 	at the time the purchase pursuant to a Purchase Authorization is made.
Payment shall be made:

	 	I.	 	in cash;

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	 	II.	 	by bank draft or certified check;
	 
	 	III.	 	subject to Section 9(g) below, in the case of an Option, if permitted
by the
Board (with respect to an Incentive Option, such permission to have been
granted at the time of the Incentive Option grant) and, with respect to any
Option held by a U.S. resident only when the Common Stock is registered
under the Exchange Act, by actual delivery or deemed delivery and
assignment to the Company of shares of Common Stock which (1) have a
fair market value equal to the exercise or purchase price (provided that the
fair market value of such shares for this purpose shall be deemed to be
equal to the Fair Market Value of same) and (2) except to the extent
otherwise permitted by the Board in any instance, have been owned by the
Participant (or other person(s) exercising the Participant’s rights under this
Plan) for at least six months prior to the date of delivery or deemed
delivery of such shares (or such other period as may be required to avoid a
charge to the Company’s earnings) or were not acquired, directly or
indirectly, from the Company and are acceptable to the Board;
	 
	 	IV.	 	if permitted by the Board, stated in the Agreement evidencing the
Option
or Purchase Authorization, and to the extent permitted by applicable law,
by the Participant’s recourse promissory note, which note must be due and
payable not more than five (5) years after the date the Option or Purchase
Authorization is exercised;
	 
	 	V.	 	by a combination of one or more of the foregoing methods; or
	 
	 	VI.	 	such other consideration and method of payment for the Common Stock
approved by the Board, to the extent permitted by applicable laws (and,
with respect to an Incentive Option, only if such approval was granted at
the time of the Incentive Option grant).

	 	 	 	For purposes of this Section and Section 9(f) below, a deemed delivery of shares shall mean
the offset by the Company of a number of shares subject to the Option or Purchase
Authorization against an equal number of shares of Common Stock owned by the Participant,
which may be accomplished by attestation by the Participant as to such shares owned. If shares
of Common Stock are to be used to pay the exercise price of an Incentive Option, the Company
must be furnished with evidence satisfactory to it prior to such payment that the acquisition
of such shares and their transfer in payment of the exercise price satisfy the requirements of
Section 422 of the Code and other applicable laws.
	 
	 	(f)	 	Withholding Taxes; Delivery of Shares. The Company’s obligation to deliver Shares
upon exercise of an Option or upon purchase pursuant to a Purchase Authorization or issuance
pursuant to a Stock Bonus shall be subject to the Participant’s satisfaction of all
applicable income, employment and non-resident tax withholding obligations. Without limiting
the generality of the foregoing, the Company shall have the right to deduct from payments of
any kind otherwise due to

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	 	 	 	the Participant any taxes of any kind required by law to be withheld with respect to any
Common Stock issued upon exercise of Options or purchased or issued pursuant to Purchase
Authorizations (to the extent the Participant, if a U.S. resident, files an election under
Section 83(b) of the Code) or which become vested pursuant to Purchase Authorizations (if, in
the case of a Participant who is a U.S. resident, no election under Section 83(b) of the Code
is filed) or Stock Bonuses. Payment of withholding taxes may be made

	 	(i)	 	by cash,
	 
	 	(ii)	 	subject to Section 9(g) below, through the surrender (by actual or deemed
delivery) of shares of Common Stock which the Participant already owns and which, except
to the extent otherwise permitted by the Board in any instance, have been owned by the
Participant for at least six months prior to the date of delivery or deemed delivery of
such Shares (or such other period as may be required to avoid a charge to the Company’s
earnings) or were not acquired, directly or indirectly, from the Company (provided,
that, in the case of Participants who are resident in the United States, such shares of
Common Stock are registered under the Exchange Act), or
	 
	 	(iii)	 	to the extent of the minimum applicable federal, state and/or provincial
withholding rate only, through the surrender of shares of Common Stock to which the
Participant is otherwise entitled under the Plan, subject to the discretion of the
Board to require payment in cash if it determines that payment by other methods is not
in the best interests of the Company.

	 	(g)	 	Restrictions. A Participant who is a resident of Ontario shall only be permitted to
(i) pay the exercise price or purchase price of an Option by actual delivery or deemed
delivery and assignment to the Company of Common Stock pursuant to Section 9(e)(iii)III above,
or (ii) pay withholding taxes by the surrender (by actual or deemed delivery) of shares of
Common Stock which the Participant already owns pursuant to Section 9(f) above, if the
aggregate number, or, in the case of debt securities that are Convertible Securities,
Exchangeable Securities or Multiple Convertible Securities, the aggregate principal amount, of
securities acquired by the Company within a 12 month period for such purpose(s) does not
exceed 5% of the outstanding shares of Common Stock at the beginning of the period.
	 
	 	(h)	 	Non-Transferability. Except as the Board may otherwise specify in an Award (which it
shall not do in any Incentive Option Award), no Option or Purchase Authorization shall be
transferable by the Participant otherwise than by will or the laws of descent or
distribution, and each Option or Purchase Authorization shall be exercisable during the
Participant’s lifetime only by the Participant. References to a Participant, to the extent
relevant in the context, shall include references to authorized transferees.
	 
	 	(i)	 	Termination of Options and Purchase Authorizations. Each Purchase Authorization
shall terminate and may no longer be exercised if the Participant ceases

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	 	 	 	for any reason to provide Services. Except to the extent the Board provides specifically in a
grant form or agreement for a lesser period (or a greater period, in the case of Options other
than Incentive Options only), each Option shall terminate and may no longer be exercised if
the Participant ceases for any reason to render continuous Service, in accordance with the
following provisions:

	 	(i)	 	if the Participant resigns from Service, the Option shall terminate on the date that
is thirty (30) days after the date of such resignation;
	 
	 	(ii)	 	if the Participant ceases to render Service for any reason other than death or
Disability, the Participant may, at any time within a period of three (3) months after
the date of such cessation of Service, exercise the Option to the extent that the Option
was exercisable on the date of such cessation;
	 
	 	(iii)	 	if the Participant ceases to render Service because of Disability (as determined
by the Board), the Participant may, at any time within a period of one (1) year after
the date of such cessation of Service, exercise the Option to the extent that the Option
was exercisable on the date of such cessation; and
	 
	 	(iv)	 	if the Participant ceases to render Service because of death, the Option, to the
extent that the Participant was entitled to exercise it on the date of death, may be
exercised within a period of one (1) year after the Participant’s death by the person or
persons to whom the Participant’s rights under the Option pass by will or by the laws of
descent or distribution;

	 	 	 	provided, however, that no Option or Purchase Authorization may be exercised to any extent by
anyone after the date of its expiration; and provided, further, that Options and Purchase
Authorizations may be exercised at any time only as to Shares which at such time are
available for acquisition pursuant to the terms of the applicable grant form or agreement.
	 
	 	 	 	The Board shall have full power and authority to extend the period of time for which an
Option is to remain exercisable following termination of Participant’s Service from the
periods set forth in subsection 9(i)(i), (ii), (iii) or (iv) above or in the applicable grant
form of agreement to such greater time as the Board shall deem appropriate, provided that in
no event shall such Option be exercisable later than the date of expiration of the term of
such Option as set forth in the grant form or agreement.
	 
	 	 	 	For the purposes of the Plan, the date of the cessation of Services shall be the date of
actual cessation of Services as determined by the Company Group without reference to any
period of notice of termination of employment that any member of the Company Group may be
required to provide at law or pursuant to the terms of any employment agreement between the
Participant and any member of the Company Group.
	 
	 	(j)	 	Rights as Stockholder. A Participant shall have no rights as a stockholder with
respect to any Shares covered by an Award until the date of issuance of a stock

13 of 18

 

	 	 	 	certificate in the Participant’s name for such Shares. The Company shall issue (or
cause to be issued) such stock certificate promptly upon exercise of
any Option or
Purchase Authorization or promptly upon issuance of a Stock Bonus.
	 
	 	(k)	 	Repurchase of Shares by the Company. Any Shares acquired upon
exercise of an Option or pursuant to a Purchase Authorization or Stock Bonus and
any gain realized upon exercise of any Options may in the discretion of the Board
be subject to repurchase by or forfeiture to the Company if and to the extent and
at the repurchase price, if any, specifically set forth in the grant form or
agreement pursuant to which the Shares were acquired or in any separate
repurchase agreement attached to or required by such Award grant form or
agreement. Certificates representing Shares subject to such repurchase or
forfeiture may be subject to such escrow and stock legending provisions as may be
set forth in the Award grant form or agreement pursuant to which the Shares were
acquired.
	 
	 	(l)	 	10% Stockholder. If any Participant to whom an Incentive Option is
granted pursuant to the provisions of the Plan is on the date of grant the owner
of stock (as determined under Section 424(d) of the Code) possessing more than
10% of the total combined voting power of all classes of stock of the Company,
its parent, if any, or subsidiaries, then the following special provisions shall
be applicable:

	 	(i)	 	The exercise price per Share subject to such Option shall not be
less than 110% of the fair market value of each Share on the date of grant; and
	 
	 	(ii)	 	The Option shall not have a term in excess of five (5) years from the date of
grant.

	 	(m)	 	Right to Terminate Service. Nothing contained in the Plan or in any
Award granted hereunder shall restrict the right of any member of the Company
Group to terminate the employment of any Participant or other Service by the
Participant at any time and for any reason.

	10.	 	Restrictions on Incentive Options.
	 
	 	 	Incentive Options granted under this Plan shall be specifically designated as such and
shall be subject to the additional restriction that the aggregate fair market value,
determined as of the date the Incentive Option is granted, of the Shares with respect
to which Incentive Options are exercisable for the first time by a Participant during
any calendar year shall not exceed US$100,000. If an Incentive Option which exceeds
the US$100,000 limitation of this Section 10 is granted, the portion of such Option
which is exercisable for Shares in excess of the US$100,000 limitation shall be
treated as a Nonqualified Option pursuant to Section 422(d) of the Code. In the event
that such Participant is eligible to participate in any other stock incentive plans of
the Company, its parent, if any, or a subsidiary which are also intended to comply
with the provisions of Section 422 of the Code, such annual limitation shall apply to
the aggregate number of shares for which options may be granted under all such plans.

14 of 18

 

	 	 	 	The Company shall have no liability to a Participant, or any other party, if an Option
(or any part thereof) intended to be an Incentive Option is not an Incentive Option.
	 
	 	11.	 	Dissolution or Liquidation.
	 
	 	 	 	Prior to any dissolution or liquidation of the Company (an
“Event”), the Board may
decide to terminate each outstanding Option and Purchase Authorization. If the Board so
decides, each Option and Purchase Authorization shall terminate as of the effective date of
the Event, but the Board shall suspend the exercise of all outstanding Options and Purchase
Authorizations at a reasonable time prior to the Event, giving each person affected thereby
not less than fourteen days written notice of the date of suspension, prior to which date
such person may purchase in whole or in part the Shares otherwise available to him as of the
date of purchase. For purposes of this section, the Shares available to any person as of the
date of purchase shall include all Shares issuable under any accelerated Awards of such
person pursuant to Section 13 below. In addition, the Board may provide for a Participant to
have the right to exercise his or her Option or Purchase Authorization as to all the Shares
covered thereby, including Shares as to which the Option or Purchase Authorization would not
otherwise be exercisable. The Board may specify the effect of a liquidation or dissolution on
any Purchase Authorization or other Award granted under the Plan at the time of the grant of
such Award. If the Event is not consummated, the suspension shall be removed and all Awards
shall continue in full force and effect, subject to their terms.
	 
	 	12.	 	Adjustment in Shares.
	 
	 	 	 	Appropriate adjustment shall be made by the Board in the maximum number of Shares
subject to the Plan and in the number, kind, and exercise price of Shares covered by
outstanding Awards granted hereunder to give effect to any stock dividends, stock splits,
stock combinations, recapitalizations and other similar changes in the capital structure of
the Company after the Effective Date of the Plan. In the event of a change of the Common
Stock resulting from a merger or similar reorganization as to which the Company is the
surviving corporation, the number and kind of Shares which thereafter may be purchased
pursuant to an Award under the Plan and the number and kind of Shares then subject to Awards
granted hereunder and the price per Share thereof shall be appropriately adjusted in such
manner as the Board may deem equitable to prevent dilution or enlargement of the rights
available or granted hereunder. The Board’s determination in any specific situation shall be
final, binding and conclusive. Except as expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Award.
	 
	 	13.	 	Acquisition Events.

	 	 	(a)	 	An “Acquisition Event” shall mean:

	 	(i)	 	any merger or consolidation after which the voting securities of the
Company outstanding immediately prior thereto represent (either by remaining
outstanding or by being converted into voting securities of the surviving or

15 of 18

 

	 	 	 	acquiring entity) less than 50% of the combined voting power of the voting
securities of the Company or such surviving or acquiring entity outstanding
immediately after such event; or
	 
	 	(ii)	 	any sale of all or substantially all of the assets or capital stock
of the Company (other than in a spin-off or similar transaction); or
	 
	 	(iii)	 	any other acquisition of the business of the Company, as determined
by the Board.

	 	(b)	 	Unless otherwise expressly provided in the applicable Award, upon the occurrence of
an Acquisition Event, the Board or the board of directors of any entity assuming the
obligations of the Company hereunder (as used in this
Section 13, also the “Board”)
shall, as to outstanding Options and Purchase Authorizations, either (i) make
appropriate provision for the continuation of such Options and
Purchase
Authorizations by substituting on an equitable basis for the shares then subject to
such Options or Purchase Authorizations either (a) the consideration payable with
respect to the outstanding shares of Common Stock in connection with the
Acquisition Event, (b) shares of stock of the surviving or successor corporation or (c)
such other securities as the Board deems appropriate, the fair market value of which
shall not materially differ from the fair market value of the shares of Common Stock
subject to such Options and Purchase Authorizations immediately preceding the
Acquisition Event; or (ii) upon written notice to the Participants, provide that all
Options and Purchase Authorizations must be exercised, to the extent then exercisable
or to be exercisable as a result of the Acquisition Event, within a specified number of
days of the date of such notice, at the end of which period the Options and Purchase
Authorizations shall terminate; or (iii) terminate all Options and
Purchase
Authorizations in exchange for a cash payment equal to the excess of the fair market
value of the Shares subject to such Options and Purchase Authorizations (to the
extent then exercisable or to be exercisable as a result of the Acquisition) over the
exercise price thereof.
	 
	 	(c)	 	Upon the occurrence of any Acquisition Event, the repurchase and other rights of
the
Company under each outstanding Award shall inure to the benefit of the Company’s
successor and shall apply to the cash, securities or other property which the Common
Stock was converted into or exchanged for pursuant to such Acquisition Event in the
same manner and to the same extent as they applied to the Common Stock subject to
such Award.
	 
	 	(d)	 	The Board shall specify the effect of an Acquisition Event on any other Award
granted under the Plan at the time of the grant of such Award.

	14.	 	Investment Representations; Transfer Restrictions.
	 
	 	 	The Company may require Participants, as a condition of acquiring Shares pursuant to
Awards hereunder, to give written assurances in substance and form satisfactory to the Company
to the effect that such person is acquiring the Shares for the Participant’s own

16 of 18

 

	 	 	account for investment and not with any present intention of selling or otherwise
distributing the same, and to such other effects as the Company deems necessary or
appropriate (including without limitation confirmation that the Participant is aware of any
applicable restrictions on transfer of the Shares, as specified in the by-laws of the Company
or otherwise) in order to comply with federal and applicable state, provincial or other
securities laws.
	 
	15.	 	Lock-up Agreement.
	 
	 	 	If requested in writing by the Company or any underwriter of the securities of the Company,
each Participant shall agree not to sell or otherwise transfer or dispose of any of the
Shares for a period not to exceed 180 days following the effective date of a registration
statement or receipt date of a (final) prospectus of the Company and, at the Company or such
underwriter’s request, shall sign a lock-up agreement to such effect.
	 
	16.	 	Securities Law Compliance.
	 
	 	 	While the Plan is intended to satisfy Section 25102(o) of the California Corporations Code,
SEC Rule 701, and MI 45-105, Options may be granted under the Plan in reliance upon other
state, U.S. federal or provincial securities law exemptions and to the extent another
exemption is relied upon, the terms of the Plan which are required only because of the
California Corporations Code, SEC Rule 701, and MI 45-105, as
applicable, need not apply.
	 
	17.	 	Termination or Amendment of Plan.
	 
	 	 	The Board may by written action at any time terminate the Plan or make such changes in or
additions to the Plan (including, without limitation, the creation or authorization of any
Sub-Plan as contemplated by Section 6(f)) as it deems advisable without further action on the
part of the stockholders of the Company, provided:

	 	(a)	 	that no such termination or amendment shall adversely affect or impair any then
outstanding Award or related agreement without the consent of the Participant
holding such Award or related agreement; and
	 
	 	(b)	 	that if the Plan itself shall have been approved by the stockholders of the
Company,
no such amendment which, pursuant to (i) the Code, (ii) the Exchange Act, or the
regulations thereunder, (iii) any rules and regulations of any stock exchange or
consolidated stock price reporting system on which prices for the Common Stock are
quoted at any time, (iv) MI 45-105, or (v) any other applicable federal, state or
foreign laws, rules and regulations requiring action by the stockholders, requires
action by the stockholders may be made without obtaining, or being conditioned
upon, stockholder approval.

	 	 	 	With the consent of the Participant affected, the Board may amend outstanding Awards or
related agreements in a manner not inconsistent with the Plan. The Board shall have the
right to amend or modify the terms and provisions of the Plan and of any outstanding
Incentive Options granted under the Plan to the extent necessary to qualify any or all such

17 of 18

 

	 	 	Options for such favorable federal income tax treatment (including deferral of taxation upon
exercise) as may be afforded incentive stock options under Section 422 of the Code.

18 of 18exv10w11

EXHIBIT 10.11

Execution Copy

AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

May 8, 2007

     THIS AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Agreement”) is made as of
the 8th day of May, 2007 by and among (i) SiGe Semiconductor, Inc., a Delaware corporation (the
“Company”), (ii) SiGe Semiconductor Inc., a Canadian corporation and subsidiary of the
Company (the “Canadian Subsidiary”), (iii) SVIC No. 4 New Technology Business Investment
L.L.P. (“Samsung”), (iv) the other investors listed on Schedule A hereto (the
“Existing Investors”), (v) each person who shall, after the date hereof, acquire shares of
Series A-1 Preferred or Class A-1 Exchangeable Shares (each as defined below) and join in and
become a party to this Agreement as an Investor by executing and delivering to the Company an
Instrument of Accession (an “Instrument of Accession”) in the form of Schedule B
hereto (together with Samsung and the Existing Investors, each an “Investor” and
collectively, the “Investors”), (vi) International Business Machines Corporation and (vii)
Fraser Milner Casgrain LLP (the “Voting Trustee”).

     WHEREAS, the Company, the Canadian Subsidiary, certain of the Investors and the Voting Trustee
have entered into a Stock Purchase Agreement of even date herewith (the “Purchase
Agreement”) regarding the issuance and sale of Series A-1 Preferred and Class A-1 Exchangeable
Shares (each as defined below);

     WHEREAS, the parties hereto desire to amend and restate that certain Amended and Restated
Investor Rights Agreement by and among the Company, the Canadian Subsidiary and the other parties
thereto, dated March 1, 2006 (the “Prior Agreement”), to set forth certain rights of the
parties hereto in respect of the shares of capital stock of the Company and the Canadian Subsidiary
owned by them; and

     WHEREAS, in connection with the sale and issuance of Series A-1 Preferred and Class A-1
Exchangeable Shares pursuant to the Purchase Agreement, effective immediately prior to, and
contingent upon, the Initial Closing (as defined in the Purchase Agreement), the then outstanding
shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D
Preferred Stock of the Company (collectively, the “Old Preferred Stock”) and the Class A
Exchangeable Shares, Class B Exchangeable Shares, Class C Exchangeable Shares and Class D
Exchangeable Shares of the Canadian Subsidiary (collectively, the “Old Exchangeable
Shares”) which are convertible into Common Exchangeable Shares of the Canadian Subsidiary (the
“Common Exchangeable Shares”) shall be converted into Common Stock (as defined below) and
Common Exchangeable Shares, respectively (the aforementioned conversion of Old Preferred Stock and
Old Exchangeable Shares, the “Preferred Stock Conversion”); and

 

 

     WHEREAS, in connection with the issuance and sale of Series A-1 Preferred and Class A-1
Exchangeable Shares pursuant to the Purchase Agreement, effective immediately after the Preferred
Stock Conversion and contingent upon and prior to the Initial Closing, each three (3) shares of
outstanding Common Stock shall be combined into one (1) share of Common Stock and each three (3)
Common Exchangeable Shares will be changed into one (1) Common Exchangeable Share (the
aforementioned 3:1 reverse stock split, the “Reverse Stock Split”);

     NOW, THEREFORE, in consideration of the mutual promises, representations, warranties,
covenants and conditions set forth in this Agreement, the parties mutually agree as follows:

     1. Certain Definitions. As used in this Agreement, the following terms shall have the
following respective meanings:

          “Affiliate” shall mean with respect to any Investor, a Person that directly or
indirectly through one or more intermediaries, controls or is controlled by, or is under common
control with, such Investor, or any investment fund sponsored by any such Person, any investment
fund whose manager or general partner is under common control with the manager or general partner
of such Investor, or any co-investment fund whose participants are comprised primarily of the
officers and/or employees of such Investor or its Affiliates.

          “Board of Directors” shall mean the board of directors of the Company as constituted
from time to time.

          “Change of Control” shall mean (a) consolidation or merger (or equivalent transaction
in any foreign jurisdiction) of the Company or any Subsidiary into or with any other entity or
entities (except a merger in which the Company is the surviving corporation and the holders of the
Company’s voting stock outstanding immediately prior to the transaction constitute the holders of a
majority of the voting stock outstanding immediately following the transaction or a consolidation
or merger of a Subsidiary the result of which is that the Company, directly or indirectly, controls
the surviving corporation immediately following the transaction), (b) the sale or transfer of all
or substantially all the assets of the Company or any Subsidiary which represents, on a
consolidated basis, substantially all the assets of the Company, (c) the sale, exchange or transfer
by the Company’s stockholders, in a single transaction or series of related transactions, of
capital stock representing a majority of the voting power at elections of directors of the
Corporation, or (d) the exclusive, irrevocable licensing of all or substantially all of the
intellectual property of the Company or any Subsidiary which represents, on a consolidated basis,
substantially all the assets of the Company, to any party other than a Subsidiary.

          “Class A-1 Exchangeable Shares” shall mean the Class A-1 Exchangeable Shares issued by
the Canadian Subsidiary.

          “Code” shall mean the United States Internal Revenue Code of 1986, as amended from
time to time. federal agency at the time administering the Securities Act.

 

 

          “Common Registrable Securities” shall mean (i) Common Stock owned as of the date of
this Agreement or hereafter acquired by any of the Investors or their permitted assigns other than
Common Stock acquired upon the exchange and/or conversion of any Shares, (ii) Common Stock issued
or issuable upon exchange of the Common Exchangeable Shares of the Canadian Subsidiary owned as of
the date of this Agreement or hereafter acquired by the Investors and their permitted assigns other
than Common Exchangeable Shares acquired upon the exchange and/or conversion of any Shares, (iii)
any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any
warrant, right or other security that is issued as) a dividend or other distribution with respect
to, or in exchange for or in replacement of such above-described securities in clause (i) and (ii).
Notwithstanding the foregoing, Common Registrable Securities shall not include any securities sold
by a person to the public pursuant to a registration statement or Rule 144 promulgated under the
Securities Act or sold in a private transaction in which the transferor’s rights under Sections 3,
4 and 5 of this Agreement are not assigned. For greater certainty, and not in limitation of the
foregoing, any reference to Common Registrable Securities held by an Investor or permitted assign
shall not be deemed to include Common Registrable Securities which such Investor or permitted
assign may acquire upon exchange and/or conversion of Shares then held by such Person.

          “Common Stock” shall mean the Standard Common Stock, $0.0001 par value, of the
Company.

          “Computer Programs” shall mean (i) any and all computer programs (consisting of sets
of statements or instructions to be used directly or indirectly in a computer in order to bring
about a certain result), and (ii) all associated data and compilations of data, regardless of their
form or embodiment. “Computer Programs” shall include, without limitation, all source code, object
code and natural language code therefor, all versions thereof, all screen displays and designs
thereof, all component modules, all descriptions, flow-charts and other work product used to
design, plan, organize and develop any of the foregoing, and all documentation, including without
limitation user manuals and training materials, relating to any of the foregoing.

          “Equity Securities” shall mean and include: (i) any shares of Common Stock, any shares
of Preferred Stock or other security of the Company, (ii) any security (including any security of
the Canadian Subsidiary) convertible or exchangeable, with or without consideration, into or for
any Common Stock, Preferred Stock or other security of the Company (including any option to
purchase such a convertible or exchangeable security), (iii) any security carrying any warrant or
right to subscribe to or purchase any Common Stock, Preferred Stock or other security of the
Company or (iv) any such warrant or right.

          “Exchange Act” shall mean the United States Securities Exchange Act of 1934, as
amended, or any similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

          “Exchangeable Shares” shall mean the Common Exchangeable Shares and the Class A-1
Exchangeable Shares of the Canadian Subsidiary.

          “IBM” shall mean International Business Machines Corporation or an Affiliate or
Affiliates thereof. For purposes of this Agreement, IBM shall not be considered an “Investor.”

 

 

          “IBM Registrable Securities” shall mean the IBM Shares with respect to which IBM is
granted registration rights by the Company solely under Section 4 of this Agreement.
Notwithstanding the foregoing, IBM Registrable Securities shall not include any securities sold by
IBM to the public pursuant to a registration statement or Rule 144 promulgated under the Securities
Act or sold in a private transaction in which the transferor’s rights under Sections 3, 4 and 5 of
this Agreement are not assigned. For greater certainty, and not in limitation of the foregoing,
any reference to IBM Registrable Securities held by IBM shall not be deemed to include IBM
Registrable Securities which IBM may acquire upon exchange and/or conversion of Shares then held by
IBM.

          “IBM Shares” shall mean the shares of Common Stock held by IBM.

          “Indebtedness” shall mean all obligations, contingent and otherwise, which should, in
accordance with United States generally accepted accounting principles, be classified upon the
obligor’s balance sheet (or the notes thereto) as indebtedness, but in any event including
liabilities secured by any mortgage on property owned or acquired subject to such mortgage, whether
or not the liability secured thereby shall have been assumed, and also including (i) all
guaranties, endorsements and other contingent obligations, in respect of Indebtedness of others,
whether or not the same are or should be so reflected in said balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business and (ii) the present value of any lease payments
due under leases required to be capitalized in accordance with United States generally accepted
accounting principals.

          “Intellectual Property Rights” shall mean all of the following: (i) patents, patent
applications, patent disclosures and all related continuation, continuation-in-part, divisional,
reissue, re-examination, utility, model, certificate of invention and design patents, patent
applications, registrations and applications for registrations, (ii) trademarks, service marks,
trade dress, logos, tradenames, service names and corporate names and registrations and
applications for registration thereof, (iii) copyrights and registrations and applications for
registration thereof, (iv) mask works and registrations and applications for registration thereof,
(v) trade secrets and confidential business information, whether patentable or unpatentable and
whether or not reduced to practice, know-how, manufacturing and product processes and techniques,
research and development information, copyrightable works, financial, marketing and business data,
pricing and cost information, business and marketing plans and customer and supplier lists and
information, (vi) Computer Programs, (vii) other proprietary rights relating to any of the
foregoing (including without limitation associated goodwill and remedies against infringements
thereof and rights of protection of an interest therein under the laws of all jurisdictions) and
(viii) copies and tangible embodiments thereof

          “Material Adverse Change” shall mean a material adverse change in the business,
operations, affairs, or condition (financial or otherwise) of the Company.

          “Person or Persons” shall mean an individual, corporation, partnership, joint venture,
trust, or unincorporated organization, or a government or any agency or political subdivision
thereof.

 

 

          “Preferred Registrable Securities” shall mean (i) Common Stock issued or issuable upon
conversion of the Shares, (ii) any Common Stock of the Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security that is issued as) a dividend or
other distribution with respect to, or in exchange for or in replacement of such above-described
securities. Notwithstanding the foregoing, Preferred Registrable Securities shall not include any
securities sold by a person to the public pursuant to a registration statement or Rule 144
promulgated under the Securities Act or sold in a private transaction in which the transferor’s
rights under Sections 3, 4 and 5 of this Agreement are not assigned. For greater certainty, and
not in limitation of the foregoing, any reference to Preferred Registrable Securities held by an
Investor or permitted assign shall be deemed to include Preferred Registrable Securities which such
Investor or permitted assign may acquire upon exchange and/or conversion of Shares then held by
such Person.

          “Preferred Stock” shall mean the Preferred Stock, $0.0001 par value, of the Company.

          “Publicly Available Software” shall mean each of (i) any software that contains, or is
derived in any manner (in whole or in part) from, any software that is distributed as free
software, open source software (e.g. Linux) or similar licensing or distribution models; and (ii)
any software that requires as a condition of use, modification and/or distribution of such software
that other software distributed with such software (a) be disclosed or distributed in source code
form; (b) be licensed for the purpose of making derivative works; or (c) be redistributable at no
charge. Publicly Available Software includes, without limitation, software licensed or distributed
under any of the following licenses or distribution models, or licenses or distribution models
similar to any of the following: (a) GNU’s General Public License (GPL) or Lesser/Library GPL
(LGPL), (b) The Artistic License (e.g., PERL), (c) the Mozilla Public License, (d) the Netscape
Public License, (e) the Sun Community Source License (SCSL), and (f) the Sun Industry Standards
License (SISL).

          “Qualified Public Offering” shall mean a fully underwritten, firm commitment public
offering pursuant to an effective registration under the Securities Act covering the offer and sale
by the Company of its Common Stock in which the proceeds to the Company (before the deduction of
expenses, underwriting discounts and commissions) equal or exceed $30 million and in which the
price per share of such Common Stock equals or exceeds $2.5835 per share (such price subject to
equitable adjustment in the event of any stock splits, stock dividends, combinations,
reclassifications, recapitalizations or other similar events occurring after the date of this
Agreement).

          “Registrable Securities” shall mean (i) Common Registrable Securities other than the
IBM Registrable Securities, (ii) Preferred Registrable Securities, and (iii) solely for purposes of
Sections 4, 6, 7, 8, 9, 16(a), 16(b), 16(d), 16(e), 16(g) and 16(h) of this Agreement, the IBM
Registrable Securities. Notwithstanding the foregoing, Registrable Securities shall not include
any securities sold by a person to the public pursuant to a registration statement or Rule 144
promulgated under the Securities Act or sold in a private transaction in which the transferor’s
rights under Sections 3, 4 and 5 of this Agreement are not assigned. For greater certainty, and
not in limitation of the foregoing, any reference to Registrable Securities held by an Investor or
permitted assign shall be deemed to include Registrable Securities which such Investor or

 

 

permitted assign may acquire upon exchange and/or conversion of Shares then held by such
Person.

          “Registration Expenses” shall mean the expenses so described in Section 7.

          “Regulated Fund” shall mean an Investor that is governed by the Community Small
Business Investment Funds Act (Ontario), as it may be amended from time to time, or any successor
legislation thereto.

          “Reserved Employee Shares” shall mean shares of Common Stock reserved by the Company
from time to time for (i) the sale of shares of Common Stock to employees, consultants, officers or
directors of the Company or any Subsidiary or (ii) the issuance and/or exercise of options to
purchase Common Stock granted to employees, consultants, officers or directors of the Company or
any Subsidiary, not to exceed (in the case of clause (i) and (ii) combined) in the aggregate
23,048,194 shares of Common Stock (appropriately adjusted to reflect stock splits, stock dividends,
combinations, reclassifications, recapitalizations or other similar events occurring after the date
of this Agreement), after May 8, 2007 (it being understood that the foregoing number of shares of
Common Stock reserved includes shares of Common Stock subject to outstanding options under the New
Plan (as defined in Section 12(a)(xvii)) and shares of Common Stock previously issued pursuant to
the New Plan, which options or shares may be reissued under the New Plan following the termination
of any unexercised options outstanding or any repurchase of such shares previously issued pursuant
to the New Plan). The foregoing number of Reserved Employee Shares may be increased by vote or
written consent of a majority of the members of the Board of Directors.

          “Securities Act” shall mean the United States Securities Act of 1933, as amended, or
any similar federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.

          “Selling Expenses” shall mean the expenses so described in Section 7.

          “Series A-1 Preferred” shall mean the Series A-1 Preferred Stock, $0.0001 par value,
issued by the Company.

          “Shares” shall mean (i) the shares of Series A-1 Preferred held by the Investors and
their permitted assigns, and (ii) the shares of Series A-1 Preferred issuable upon the exchange of
the Class A-1 Exchangeable Shares held by the Investors and their permitted assigns.

          “Special A-1 Voting Stock” shall mean the Special A-1 Voting Stock, $0.0001 par value,
issued by the Company.

          “Special Common Voting Stock” shall mean the Special Common Voting Stock, $0.0001 par
value, issued by the Company.

          “Subsidiary” or “Subsidiaries” shall mean any corporation or trust of which the
Company and/or any of its other Subsidiaries (as herein defined) directly or indirectly owns at the
time outstanding shares of every class of such corporation or trust other than directors’

 

 

qualifying shares comprising at least fifty percent (50%) of the voting power of such
corporation or trust, including, without limitation, the Canadian Subsidiary.

          “U.S. Person” shall mean: (i) any natural person resident in the United States;
(ii) any partnership or corporation organized or incorporated under the laws of the United
States; (iii) any estate of which any executor or administrator is a U.S. Person; (iv) any trust of
which any trustee is a U.S. Person; (v) any agency or branch of a foreign entity located in the
United States; (vi) any non-discretionary account or similar account (other than an estate or
trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person; (vii) any
discretionary account or similar account (other than an estate or trust) held by a dealer or other
fiduciary organized, incorporated, or (if an individual) resident in the United States; and
(viii) any partnership or corporation if: (A) organized or incorporated under the laws of any
foreign jurisdiction; and (B) formed by a U.S. Person principally for the purpose of investing in
securities not registered under the Securities Act, unless it is organized or incorporated, and
owned, by accredited investors (as defined in Rule 501(a) under the Securities Act) who are not
natural persons, estates or trusts; provided, however, the following are not “U.S. Persons”:
(i) any discretionary account or similar account (other than an estate or trust) held for the
benefit or account of a non-U.S. Person by a dealer or other professional fiduciary organized,
incorporated, or (if an individual) resident in the United States; (ii) any estate of which any
provisional fiduciary acting as executor or administrator is a U.S. Person if: (A) an executor or
administrator of the estate who is not a U.S. Person has sole or shared investment discretion with
respect to the assets of the estate; and (B) the estate is governed by foreign law; (iii) any trust
of which any professional fiduciary acting as trustee is a U.S. Person, if a trustee who is not a
U.S. Person has sole and shared investment discretion with respect to the trust assets, and no
beneficiary of the trust (and no senior if the trust is revocable) is a U.S. Person; (iv) an
employee benefit plan established and administered in accordance with the law of a country other
than the United States and customary practices and documentation of such country; (v) any agency or
branch of a U.S. Person located outside the United States if: (A) the agency or branch operates for
valid business reasons; and (B) the agency or branch is engaged in the business of insurance or
banking and is subject to substantive insurance or banking regulation, respectively, in the
jurisdiction where located; and; (vi) the International Monetary Fund, the International Bank for
Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank,
the African Development Bank, the United Nations, and their agencies, affiliates and pension plans,
and any other similar international organizations, their agencies, affiliates and pension plans.

     2. Restrictive Legend. Each certificate representing Equity Securities held by a
party hereto shall, except as otherwise provided in this Section 2, be stamped or otherwise
imprinted with a legend substantially similar to the following, in addition to any legend setting
forth transfer restrictions under Canadian securities laws which the securities of the Canadian
Subsidiary and the securities held by Canadian residents shall bear, and any other legend required
by state or provincial securities laws:

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION

 

 

STATEMENT 1N EFFECT WITH RESPECT TO THE SECURITIES UNDER THE ACT OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED, OR
UNLESS SOLD PURSUANT TO RULE 144 PROMULGATED UNDER THE ACT OR IN COMPLIANCE WITH
REGULATION S UNDER THE ACT AND IN ACCORDANCE WITH APPLICABLE CANADIAN SECURITIES
LAWS. ANY SUCH TRANSFER MAY ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.
HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE ACT.”

A certificate shall not bear such legend if in the opinion of counsel satisfactory to the Company
the securities represented thereby may be publicly sold without registration under applicable
United States and/or Canadian federal, provincial and state securities laws.

     3. Required Registration.

          (a) At any time after the earlier of (i) the 181st day following the closing of Company’s
initial public offering and (ii) May 8, 2010, Investors holding at least twenty-five percent (25%)
in interest of the then outstanding Preferred Registrable Securities may request the Company to
register under the Securities Act all or any portion of the shares of Registrable Securities held
by such requesting holder or holders for sale in the manner specified in such notice, provided,
however, that Investors holding less than the aforementioned twenty-five percent (25%) in interest
may make such request for registration by the Company if the Registrable Securities for which
registration is requested have a reasonably anticipated aggregate offering price to the public of
at least $5,000,000. The only securities which the Company shall be required to register pursuant
to this Agreement shall be shares of Common Stock; provided, however, that in any underwritten
public offering contemplated by this Section 3 or Sections 4 and 5, the holders of Series A-1
Preferred shall be entitled to sell such Series A-1 Preferred to the underwriters for conversion
and sale of the shares of Common Stock issued upon conversion thereof. Notwithstanding anything to
the contrary contained herein, no request may be made under this Section 3 within 90 days after the
effective date of any registration statement on Form S-1 filed by the Company.

          (b) Following receipt of any notice under this Section 3, the Company shall immediately notify
all holders of Registrable Securities from whom notice has not been received and such holders shall
then be entitled within 15 days thereafter to request the Company to include in the requested
registration all or any portion of their shares of Registrable Securities. The Company shall use
its best efforts to register under the Securities Act, for public sale in accordance with the
method of disposition described in paragraph (a) above, the number of shares of Registrable
Securities specified in such notice (and in all notices received by the Company from other holders
of Registrable Securities within 15 days after the giving of such notice by the Company). The
Company shall be obligated to register Registrable Securities pursuant to this Section 3 on two (2)
occasions only (which limitation shall not restrict the number of demands for registration that are
permitted pursuant to and subject to Section 5 hereof) and only when the Investors propose to
register Registrable Securities that may not be immediately registered on Form S-3 pursuant to a
request for registration made pursuant to

 

 

Section 5; provided, however, that such obligation shall be deemed satisfied only when a
registration statement covering all shares of Registrable Securities specified in notices received
as aforesaid for sale in accordance with the method of disposition specified by the requesting
holders (other than any such shares excluded solely (i) due to a holder’s failure to provide the
Seller Information (as defined in Section 6) in accordance with Section 6 hereof or (ii) in the
case of an underwritten public offering, due to refusal of a holder to enter into the Underwriting
Agreement (as defined in Section 6) in accordance with Section 6 hereof) shall have become
effective or if such registration statement has been withdrawn prior to the consummation of the
offering at the request of the holders of Registrable Securities (other than as a result of a
Material Adverse Change of which the holders of Registrable Securities initiating such registration
were not aware at the time of their request under this Section 3) and, if such method of
disposition is a firm commitment underwritten public offering, all such shares shall have been sold
pursuant thereto (not including shares eligible for sale pursuant to the underwriters’
over-allotment option).

          (c) The Company shall not be entitled to include in any registration statement referred to in
this Section 3 shares of Common Stock to be sold by the Company for its own account. Except for
registration statements on Form S-4, S-8 or any successor thereto, the Company will not file with
the Commission any other registration statement with respect to its Common Stock, whether for its
own account or that of other stockholders, from the date of receipt of a notice from requesting
holders requesting sale pursuant to an underwritten offering pursuant to this Section 3 until the
completion of the period of distribution of the registration contemplated thereby.

          (d) If in the opinion of the managing underwriter the inclusion of all of the Registrable
Securities requested to be registered under this Section would adversely affect the marketing of
such shares, Registrable Securities shall be excluded from such registration to the extent deemed
advisable by the managing underwriter and shall be excluded in the following order:

               (i) first, the Common Registrable Securities, pro rata among the holders thereof based upon
the number of Common Registrable Shares requested to be registered by each such holder; and

               (ii) second, the Preferred Registrable Securities, pro rata among the holders thereof based
upon the number of Preferred Registrable Shares requested to be registered by each such holder.

          (e) Notwithstanding the foregoing, the Company shall not be obligated to effect, or to take
any action to effect, any registration requested pursuant to this Section 3 if, within 30 days of
the receipt of such request, the Company notifies the Investors requesting such registration, that
the Company intends to file a registration statement for a Company-initiated registration within 90
days from that date such notice is provided.

     3.1 Canadian Prospectus Requirements. If the Company at any time proposes to make a
public offering of its securities for its own account, it will be in the Company’s discretion as to
whether any such public offering will be made in both the United States or Canada, or in

 

 

only one of the aforementioned jurisdictions; provided, however, that notwithstanding the
foregoing:

          (a) unless the initial public offering of the Company’s securities already involves such a
filing, the Company shall, if requested by the holders of at least twenty percent (20%) of the
Registrable Securities held by Persons resident in Canada, concurrently file a prospectus in a
jurisdiction specified in Appendix B of MI 45-102 promulgated under Canadian securities laws for
the purposes of becoming a “reporting issuer” therein, and use its commercially reasonable efforts
to obtain a receipt therefor; and

          (b) in the event that the escrow of any Registrable Securities is required under applicable
Canadian securities laws in connection with the initial public offering of the Company’s securities
and a choice of escrow regime or policy is available to the Company, the Company agrees that it
will adopt such regime or policy as would be most beneficial to the holders of Registrable
Securities, as determined by the holders holding at least sixty-seven percent (67%) in interest of
the then outstanding Registrable Securities.

     The Company shall cease to be subject to the obligations in paragraph (a) above to file a
prospectus in any jurisdiction of Canada for the purposes of becoming a reporting issuer if the
Company demonstrates (i) with an opinion of counsel reasonably acceptable to the holders of at
least sixty-seven percent (67%) of the then outstanding Registrable Securities held by residents of
Canada that such holders are permitted to publicly sell their Registrable Securities on a stock
exchange or market in the United States without a prospectus in Canada, or (ii) with an opinion of
counsel reasonably acceptable to the holders of at least sixty-seven percent (67%) of the then
outstanding Registrable Securities held by residents of Canada that such holders are permitted to
publicly sell their Registrable Securities on a stock exchange or market in the United States in
reliance on a prospectus exemption under applicable Canadian securities laws other than a private
placement exemption.

     4. Incidental Registration. If the Company at any time (other than pursuant to
Section 3 or Section 5) proposes to register any of its securities under the Securities Act for
sale to the public, whether for its own account or for the account of other security holders or
both (except with respect to a registration statement in connection with the Company’s initial
public offering of Common Stock and registration statements on Forms S-4, S-8 or another form not
available for registering the Registrable Securities for sale to the public), each such time it
will give written notice to all holders of outstanding Registrable Securities of its intention so
to do. Upon the written request of any such holder, received by the Company within 15 days after
the giving of any such notice by the Company, to register any of its Registrable Securities, the
Company will use its best efforts to cause the Registrable Securities as to which registration
shall have been so requested to be included in the securities to be covered by the registration
statement proposed to be filed by the Company, all to the extent required to permit the sale or
other disposition by the holder of such Registrable Securities so registered. In the event that
any registration pursuant to this Section 4 shall be, in whole or in part, an underwritten public
offering of Common Stock, the number of shares of Registrable Securities to be included in such an
underwriting may be reduced if in the opinion of the managing underwriter the inclusion of all of
the Registrable Securities requested to be registered under this Section would adversely affect the
marketing of such shares. In such case, shares to be excluded from such registration shall be

 

 

to the extent deemed advisable by the managing underwriter and shall be excluded in the
following order:

          (a) first, the Common Registrable Securities and IBM Registrable Securities, pro rata among
the holders thereof based upon the number of Common Registrable Shares and IBM Registrable
Securities requested to be registered by each such holder;

          (b) second, the Preferred Registrable Securities, pro rata among the holders thereof based
upon the number of Preferred Registrable Shares requested to be registered by each such holder;
provided, that, in no event will less than thirty-five percent (35%) of the total number of shares
of Common Stock be included in such underwriting; and

          
(c) third, the securities to be registered for the Company’s own account.

     5. Registration on Form S-3. If at any time (i) holders of at least thirty percent
(30%) of then outstanding Registrable Securities request that the Company file a registration
statement on Form S-3 or any successor thereto for a public offering of all or any portion of the
shares of Registrable Securities held by such requesting holders, and (ii) the Company is a
registrant entitled to use Form S-3 or any successor thereto to register such shares, then the
Company shall use its best efforts to register under the Securities Act on Form S-3 or any
successor thereto, for public sale in accordance with the method of disposition specified in such
notice, the number of shares of Registrable Securities specified in such notice; provided, however,
that the Registrable Securities for which registration has been requested have a reasonably
anticipated aggregate offering price to the public of at least $1,000,000. Whenever the Company is
required by this Section 5 to use its best efforts to effect the registration of Registrable
Securities, each of the procedures and requirements of Section 3 (including but not limited to the
requirement that the Company notify all holders of Registrable Securities from whom notice has not
been received and provide them with the opportunity to participate in the offering and the
requirement that such request not be made within 90 days after the effective date of any
registration statement on Form S-1 filed by the Company) shall apply to such registration,
provided, however, that there shall be no limitation on the number of registrations on Form S-3
which may be requested and obtained under this Section 5, and provided, further, however, that the
requirements contained in the first sentence of Section 3(a) shall not apply to any registration on
Form S-3 which may be requested and obtained under this Section 5. Notwithstanding anything to the
contrary in this Section 5, the Company shall not be required to effect more than two (2)
registrations pursuant to this Section 5 in any 12 month period.

     5.1. Notwithstanding the obligations set forth in Section 3 and Section 5, if the Company
furnishes to Investors requesting a registration pursuant to Section 3 or Section 5 a certificate
signed by the Company’s chief executive officer stating that in the good faith judgment of the
Board of Directors it would be materially detrimental to the Company and its stockholders for such
registration statement to either become effective or remain effective for as long as such
registration statement otherwise would be required to remain effective, because such action would
(a) materially interfere with a significant acquisition, corporate reorganization, or other similar
transaction involving the Company; (b) require premature disclosure of material information that
the Company has a bona fide business purpose for preserving as confidential; (c) render the Company
unable to comply with requirements under the Securities Act or

 

 

Exchange Act or (d) result in the filing of, or continued effectiveness of, as applicable, a
registration statement or prospectus, or any document incorporated or deemed to be incorporated
therein by reference, which, in the case of a registration statement, would contain an untrue
statement of a material fact or omit a material fact required to be stated therein or necessary to
make the statements therein not misleading, or, in the case of the Prospectus, would contain an
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, then the Company shall have the right to defer taking action
with respect to registration request made pursuant Section 3 or Section 5 or may suspend an
effective registration statement filed pursuant to this Agreement; provided, however, that the
Company may not invoke this right for more than two periods not in excess of 90 days in the
aggregate in any twelve (12) month period.

     6. Registration Procedures. If and whenever the Company is required by the provisions
of Sections 3, 4 or 5 to use its best efforts to effect the registration of any shares of
Registrable Securities under the Securities Act, the Company will, as expeditiously as possible:

          (a) prepare and file with the Commission a registration statement (which, in the case of an
underwritten public offering pursuant to Section 3, shall be on Form S-1 or other form of general
applicability satisfactory to the managing underwriter selected as therein provided) with respect
to such securities and use its best efforts to cause such registration statement to become and
remain effective for the period of the distribution contemplated thereby (determined as hereinafter
provided);

          (b) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for the period specified in paragraph (a) above and comply with
the provisions of the Securities Act with respect to the disposition of all Registrable Securities
covered by such registration statement in accordance with the sellers’ intended method of
disposition set forth in such registration statement for such period;

          (c) furnish to each seller of Registrable Securities and to each underwriter such number of
copies of the registration statement and the prospectus included therein (including each
preliminary prospectus) as such persons reasonably may request in order to facilitate the public
sale or other disposition of the Registrable Securities covered by such registration statement;

          (d) use its best efforts to register or qualify the Registrable Securities covered by such
registration statement under the securities or “blue sky” laws of such jurisdictions as the sellers
of Registrable Securities or, in the case of an underwritten public offering, the managing
underwriter reasonably shall request, provided, however, that the Company shall not for any such
purpose be required to qualify generally to transact business as a foreign corporation in any
jurisdiction where it is not so qualified or to consent to general service of process in any such
jurisdiction;

 

 

          (e) use its best efforts to list the Registrable Securities covered by such registration
statement with any securities exchange on which the Common Stock of the Company is then listed;

          (f) provide a transfer agent and registrar for all such Registrable Securities registered
pursuant hereto and a CUSIP number for all such Registrable Securities, in each case not later than
the effective date of such registration statement;

          (g) immediately notify each seller of Registrable Securities and each underwriter under such
registration statement, at any time when a prospectus relating thereto is required to be delivered
under the Securities Act, of the happening of any event of which the Company has knowledge as a
result of which the prospectus contained in such registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing;

          (h) if the offering is underwritten and at the request of any seller of Registrable
Securities, use its best efforts to furnish on the date that Registrable Securities are delivered
to the underwriters for sale pursuant to such registration: (i) an opinion dated such date of
counsel representing the Company for the purposes of such registration, addressed to the
underwriters and to such seller, stating that such registration statement has become effective
under the Securities Act and that (A) to the best knowledge of such counsel, no stop order
suspending the effectiveness thereof has been issued and no proceedings for that purpose have been
instituted or are pending or contemplated under the Securities Act, (B) the registration statement,
the related prospectus and each amendment or supplement thereof comply as to form in all material
respects with the requirements of the Securities Act (except that such counsel need not express any
opinion as to financial statements contained therein) and (C) to such other effects as reasonably
may be requested by counsel for the underwriters or by such seller or its counsel and (ii) a letter
dated such date from the independent public accountants retained by the Company, addressed to the
underwriters and to such seller, stating that they are independent public accountants within the
meaning of the Securities Act and that, in the opinion of such accountants, the financial
statements of the Company included in the registration statement or the prospectus, or any
amendment or supplement thereof, comply as to form in all material respects with the applicable
accounting requirements of the Securities Act, and such letter shall additionally cover such other
financial matters (including information as to the period ending no more than five (5) business
days prior to the date of such letter) with respect to such registration as such underwriters
reasonably may request;

          (i) make available for inspection by each seller of Registrable Securities, any underwriter
participating in any distribution pursuant to such registration statement, and any attorney,
accountant or other agent retained by such seller or underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the Company’s officers,
directors and employees to supply all information reasonably requested by any such seller,
underwriter, attorney, accountant or agent in connection with such registration statement. The
rights granted pursuant to this subsection (i) may not be assigned or otherwise conveyed by such
person or by any subsequent transferee of any such rights without the written consent of the
Company, which consent shall not be unreasonably withheld; provided that the Company may

 

 

refuse such written consent if the proposed transferee is a competitor of the Company as
determined by the Board of Directors; and provided further, that no such written consent shall be
required if the transfer is made to a party who is not a competitor of the Company and who is a
parent, subsidiary, affiliate, partner or group member of such person;

          (j) advise each selling holder of Registrable Securities, promptly after it shall receive
notice or obtain knowledge thereof, of the issuance of any stop order by the Commission suspending
the effectiveness of such registration statement or the initiation or threatening of any proceeding
for such purpose and promptly use all reasonable efforts to prevent the issuance of any stop order
or to obtain its withdrawal if such stop order should be issued;

          (k) cooperate with the selling holders of Registrable Securities and the managing
underwriters, if any, to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold, such certificates to be in such denominations and
registered in such names as such holders or the managing underwriters may request at least two (2)
business days prior to any sale of Registrable Securities; and

          (l) permit any holder of Registrable Securities which holder, in the sole and exclusive
judgment, exercised in good faith, of such holder, might be deemed to be a controlling person of
the Company, to participate in good faith in the preparation of such registration or comparable
statement and to require the insertion therein of material, furnished to the Company in writing,
which in the reasonable judgment of such holder and its counsel should be included, subject to
review by the Company and its counsel after consultation with such holder.

     For purposes of Section 6(a) and 6(b) and of Section 3(c), the period of distribution of
Registrable Securities in a firm commitment underwritten public offering shall be deemed to extend
until each underwriter has completed the distribution of all securities purchased by it, and the
period of distribution of Registrable Securities in any other registration shall be deemed to
extend until the earlier of the sale of all Registrable Securities covered thereby and 180 days
after the effective date thereof.

     In connection with each registration hereunder, the sellers of Registrable Securities will
furnish to the Company in writing such information with respect to themselves and the proposed
distribution by them as reasonably shall be necessary in order to assure compliance with federal
and applicable provincial or state securities laws (the “Seller Information”).

     In connection with each registration pursuant to Sections 3, 4 or 5 covering an underwritten
public offering, the Company and each seller agree to enter into a written agreement with the
managing underwriter selected in the manner herein provided in such form and containing such
provisions as are customary in the securities business for such an arrangement between such
underwriter and companies of the Company’s size and investment stature (the “Underwriting
Agreement”).

     7. Expenses. All expenses incurred by the Company in complying with Sections 3, 4 and
5, including, without limitation, all registration and filing fees, printing expenses, fees and
disbursements of counsel (including the reasonable fees and expenses of one counsel selected by the
Investors participating in the applicable registration holding a majority of the Registrable

 

 

Securities being registered, which fees and expenses shall not exceed $30,000) and independent
public accountants for the Company, fees and expenses (including counsel fees) incurred in
connection with complying with state securities or “blue sky” laws, fees of the National
Association of Securities Dealers, Inc., fees of transfer agents and registrars, costs of
insurance, and fees and disbursements of one counsel for the sellers of Registrable Securities, but
excluding any Selling Expenses, are called “Registration Expenses”. All underwriting
discounts, selling commissions and transfer taxes applicable to the sale of Registrable Securities
are called “Selling Expenses”.

     The Company will pay all Registration Expenses in connection with each registration statement
under Sections 3, 4 or 5. All Selling Expenses in connection with each registration statement
under Sections 3, 4 or 5 shall be borne by the participating sellers in proportion to the number of
shares sold by each, or by such participating sellers other than the Company (except to the extent
the Company shall be a seller) as they may agree.

     8. Indemnification and Contribution.

          (a) In the event of a registration of any of the Registrable Securities under the Securities
Act pursuant to Sections 3, 4 or 5, the Company will indemnify and hold harmless each seller of
such Registrable Securities thereunder, each underwriter of such Registrable Securities thereunder
and each other person, if any, who controls such seller or underwriter within the meaning of the
Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such
seller, underwriter or controlling person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of any material fact contained
in any registration statement under which such Registrable Securities were registered under the
Securities Act pursuant to Sections 3, 4 or 5, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse each such seller, each
such underwriter and each such controlling person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action, provided, however, that the Company will not be liable in any such case if and
to the extent that any such loss, claim, damage or liability (i) arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission so made in conformity
with information furnished by any such seller, any such underwriter or any such controlling person
in writing specifically for use in such registration statement or prospectus or (ii) arises solely
due to failure of such seller to deliver any amendment or supplement to such registration statement
or prospectus which has previously been provided to such seller by the Company.

          (b) In the event of a registration of any of the Registrable Securities under the Securities
Act pursuant to Sections 3, 4 or 5, each seller of such Registrable Securities thereunder,
severally and not jointly, will indemnify and hold harmless the Company, each person, if any, who
controls the Company within the meaning of the Securities Act, each officer of the Company who
signs the registration statement, each director of the Company, each underwriter and each person
who controls any underwriter within the meaning of the Securities

 

 

Act, against all losses, claims, damages or liabilities, joint or several, to which the
Company or such officer, director, underwriter or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in the registration statement under which such Registrable Securities
were registered under the Securities Act pursuant to Sections 3, 4 or 5, any preliminary prospectus
or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or
are based upon the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and will reimburse the
Company and each such officer, director, underwriter and controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action, provided, however, that such seller will be liable hereunder in
any such case if and only to the extent that any such loss, claim, damage or liability arises out
of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission
made in reliance upon and in conformity with information pertaining to such seller, as such,
furnished in writing to the Company by such seller specifically for use in such registration
statement or prospectus, and provided, further, however, that the liability of each seller
hereunder shall be limited to the proportion of any such loss, claim, damage, liability or expense
which is equal to the proportion that the public offering price of the shares sold by such seller
under such registration statement bears to the total public offering price of all securities sold
thereunder, but not in any event to exceed the net proceeds received by such seller from the sale
of Registrable Securities covered by such registration statement.

          (c) Promptly after receipt by an indemnified party hereunder of notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so
to notify the indemnifying party shall not relieve it from any liability which it may have to such
indemnified party other than under this Section 8 and shall only relieve it from any liability
which it may have to such indemnified party under this Section 8 if and to the extent the
indemnifying party is prejudiced by such omission. In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall
wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such
indemnified party, and, after notice from the indemnifying party to such indemnified party of its
election so to assume and undertake the defense thereof, the indemnifying party shall not be liable
to such indemnified party under this Section 8 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected, provided, however, that, if the defendants
in any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be reasonable defenses available
to it which are different from or additional to those available to the indemnifying party or if the
interests of the indemnified party reasonably may be deemed to conflict with the interests of the
indemnifying party, the indemnified party shall have the right to select a separate counsel and to
assume such legal defenses and otherwise to participate in the defense of such action, with the
expenses and fees of such separate counsel and other expenses related to such participation to be
reimbursed by the indemnifying party as incurred.

 

 

          (d) In order to provide for just and equitable contribution to joint liability under the
Securities Act in any case in which either (i) any holder of Registrable Securities exercising
rights under this Agreement, or any controlling person of any such holder, makes a claim for
indemnification pursuant to this Section 8 but it is judicially determined (by the entry of a final
judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that this Section 8 provides for indemnification in such case, or (ii)
contribution under the Securities Act may be required on the part of any such selling holder or any
such controlling person in circumstances for which indemnification is provided under this Section
8; then, and in each such case, the Company and such holder will contribute to the aggregate
losses, claims, damages or liabilities to which they may be subject (after contribution from
others) in such proportion so that such holder is responsible for the portion represented by the
percentage that the public offering price of its Registrable Securities offered by the registration
statement bears to the public offering price of all securities offered by such registration
statement, and the Company is responsible for the remaining portion; provided, however, that, in
any such case, (A) no such holder will be required to contribute any amount in excess of the public
offering price of all such Registrable Securities offered by it pursuant to such registration
statement; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity
who was not guilty of such fraudulent misrepresentation.

     9. Rule 144 Reporting. With a view to making available the benefits of certain rules
and regulations of the Commission which may at any time permit the sale of the Registrable
Securities to the public without registration, at all times after 90 days after any registration
statement covering a public offering of securities of the Company under the Securities Act shall
have become effective, the Company agrees to:

          (a) make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act;

          (b) use its best efforts to file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act; and

          (c) furnish to each holder of Registrable Securities forthwith upon request a written
statement by the Company as to its compliance with the reporting requirements of such Rule 144 and
of the Securities Act and the Exchange Act, 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 such holder may
reasonably request in availing itself of any rule or regulation of the Commission allowing such
holder to sell any Registrable Securities without registration.

     10. Right of First Refusal

          (a) Right of First Refusal. The Company shall not issue, sell or exchange, agree or
obligate itself to issue, sell or exchange, or reserve or set aside for issuance, sale or exchange,
any Equity Securities, unless the Company shall have first offered to sell such securities (the
“Offered Securities”) to the Investors (each an “Offeree” and collectively, the

 

 

“Offerees”) as follows: Each Offeree shall have the right to purchase (x) that
portion of the Offered Securities as the number of shares of Registrable Securities then held by
such Offeree bears to total number of shares of Common Stock of the Company (including any shares
of Preferred Stock or Exchangeable Shares, on an as-exchanged and as-converted to Common Stock
basis) (the “Basic Amount”), and (y) such additional portion of the Offered Securities as
such Offeree shall indicate it will purchase should the other Offerees subscribe for less than
their Basic Amounts (the “Undersubscription Amount”), at a price and on such other terms as
shall have been specified by the Company in writing delivered to such Offeree (the
“Offer”), which Offer by its terms shall remain open and irrevocable for a period of 20
days from receipt of the Offer.

          (b) Notice of Acceptance. Notice of each Offeree’s intention to accept, in whole or
in part, any Offer made pursuant to Section 10(a) shall be evidenced by a writing signed by such
Offeree and delivered to the Company prior to the end of the 20-day period of such offer, setting
forth such of the Offeree’s Basic Amount as such Offeree elects to purchase and, if such Offeree
shall elect to purchase all of its Basic Amount, such Undersubscription Amount as such Offeree
shall elect to purchase (the “Notice of Acceptance”). If the Basic Amounts subscribed for
by all Offerees are less than the total Offered Securities, then each Offeree who has set forth
Undersubscription Amounts in its Notice of Acceptance shall be entitled to purchase, in addition to
the Basic Amounts subscribed for, all Undersubscription Amounts it has subscribed for; provided,
however, that should the Undersubscription Amounts subscribed for exceed the difference between the
aggregate Basic Amounts of all the Offerees and the Basic Amounts subscribed for (the
“Available Undersubscription Amount”), each Offeree who has subscribed for any
Undersubscription Amount shall be entitled to purchase only that portion of the Available
Undersubscription Amount as the Undersubscription Amount subscribed for by such Offeree bears to
the total Undersubscription Amounts subscribed for by all Offerees, subject to rounding by the
Company to the extent it reasonably deems necessary.

          (c) Conditions to Acceptances and Purchase.

               (i) Permitted Sales of Refused Securities. In the event that Notices of Acceptance
are not given by the Offerees in respect of all the Offered Securities, the Company shall have 90
days from the expiration of the period set forth in Section 10(a) to close the sale of all or any
part of such Offered Securities as to which a Notice of Acceptance has not been given by the
Offerees (the “Refused Securities”) to the Person or Persons specified in the Offer, but
only for cash and otherwise in all respects upon terms and conditions, including, without
limitation, unit price and interest rates, which are no more favorable, in the aggregate, to such
other Person or Persons or less favorable to the Company than those set forth in the Offer.

               (ii) Reduction in Amount of Offered Securities. In the event the Company shall
propose to sell less than all the Refused Securities (any such sale to be in the manner and on the
terms specified in Section 10(c)(i) above), then each Offeree may, at its sole option and in its
sole discretion, reduce the number of, or other units of the Offered Securities specified in its
respective Notices of Acceptance to an amount which shall be not less than the amount of the
Offered Securities which the Offeree elected to purchase pursuant to Section 10(b) multiplied by a
fraction, (i) the numerator of which shall be the amount of Offered Securities which the Company
actually proposes to sell, and (ii) the denominator of which shall be the

 

 

amount of all Offered Securities. In the event that any Offeree so elects to reduce the
number or amount of Offered Securities specified in its respective Notices of Acceptance, the
Company may not sell or otherwise dispose of more than the reduced amount of the Offered Securities
until such securities have again been offered to the Offerees in accordance with Section 10(a).

               (iii) Closing. Upon the closing, which shall include full payment to the Company, of
the sale to such other Person or Persons of all or less than all the Refused Securities, the
Offerees shall purchase from the Company, and the Company shall sell to the Offerees, the number of
Offered Securities specified in the Notices of Acceptance, as reduced pursuant to Section 10(c)(ii)
if the Offerees have so elected, upon the terms and conditions specified in the Offer. The
purchase by the Offerees of any Offered Securities is subject in all cases to the preparation,
execution and delivery by the Company and the Offerees of a purchase agreement relating to such
Offered Securities reasonably satisfactory in form and substance to the Offerees and their
respective counsel.

          (d) Further Sale. In each case, any Offered Securities not purchased by the Offerees
or other Person or Persons in accordance with Section 10(c) may not be sold or otherwise disposed
of until they are again offered to the Offerees under the procedures specified in Sections 10(a),
10(b) and 10(c).

          (e) Exception. The rights of the Investors under this Section 10 shall not apply to:

               (i) shares of Common Stock issued or issuable upon conversion of the Preferred Stock;

               (ii) shares of Special Common Voting Stock and Special A-1 Voting Stock;

               (iii) shares of Common Stock and Preferred Stock issued or issuable upon exchange of
Exchangeable Shares of the Canadian Subsidiary;

               (iv) shares of Common Stock issued by reason of a dividend, stock split, split-up,
subdivision, combination or other distribution on shares of Common Stock;

               (v) securities issued in connection with a bona fide business acquisition of the Company;

               (vi) securities issued or issuable pursuant to strategic transactions entered into for
primarily non-equity financing purposes and approved by the Board of Directors (including a
majority of the members of the Board of Directors elected solely by the holders of the Series A-1
Preferred and Special A-1 Voting Stock);

               (vii) securities issued or issuable pursuant to equipment lease financings or bank credit
arrangements entered into for primarily non-equity financing purposes approved by the Board of
Directors (including a majority of the members of the Board of Directors elected solely by the
holders of the Series A-1 Preferred and Special A-1 Voting Stock); and

 

 

               (viii) Reserved Employee Shares.

          (f) Holders of Exchangeable Shares. If an Investor holding Exchangeable Shares (an
“Exchangeable Holder”) exercises its right of first refusal pursuant to this Section 10,
the Company and the Canadian Subsidiary shall, at the request of the Exchangeable Holder, use
commercially reasonable efforts to structure the proposed offer of Equity Securities to the
Exchangeable Holder as an offer of securities of the Canadian Subsidiary which are exchangeable
into such offered securities (the “Alternative Securities”), and make appropriate provision
(through special voting stock of the Company or otherwise) to provide for voting rights
representing such Exchangeable Holder’s interest; provided, however, that, the Exchangeable Holders
exercising their respective rights of first refusal pursuant to this Section 10 and requesting
Alternative Securities pursuant to this Section 10(f) shall have agreed to purchase Equity
Securities with an aggregate purchase price of at least $1,000,000 pursuant to this Section 10.

          (g) Termination. The rights of the Offerees under this Section 10 shall terminate
immediately prior to, but subject to the consummation of: (i) a Qualified Public Offering; (ii) the
sale of all or substantially all of the assets of the Company; or (iii) the merger or consolidation
(or equivalent transaction in any foreign jurisdiction) of the Company or any Subsidiary with or
into, any other entity or entities (except a merger in which the Company is the surviving
Corporation and the holders of the Company’s voting stock outstanding immediately prior to the
transaction constitute a majority of the holders of voting stock outstanding immediately following
the transaction or a consolidation or merger of a Subsidiary, the result of which is that the
Company, directly or indirectly, owns all of the issued and outstanding capital stock, and any
rights to acquire capital stock of the surviving Corporation immediately following the transaction)

     11. [Reserved]

     12. Covenants of the Company.

          (a) Affirmative Covenants of the Company Other Than Reporting Requirements. Without
limiting any other covenants and provisions hereof, and except to the extent the following
covenants and provisions of this Section 12(a) are waived in any instance by the holders of a
majority in interest of the holders of Registrable Securities, the Company covenants and agrees
that until the consummation of a Qualified Public Offering it will perform and observe the
following covenants and provisions, and will cause each Subsidiary, if and when such Subsidiary
exists, to perform and observe such of the following covenants and provisions as are applicable to
such Subsidiary:

               (i) Payment of Taxes and Trade Debt. Pay and discharge, and cause each Subsidiary to
pay and discharge, all taxes, assessments and governmental charges or levies imposed upon it or
upon its income, profits or business, or upon any properties belonging to it, prior to the date on
which penalties attach thereto, and all lawful claims which, if unpaid, might become a lien or
charge upon any properties of the Company or any Subsidiary; provided, however, that neither the
Company nor any Subsidiary shall be required to pay any such tax, assessment, charge, levy or claim
which is being contested in good faith and by appropriate

 

 

proceedings if the Company or any Subsidiary shall have set aside on its books sufficient
reserves, if any, with respect thereto. Pay and cause each Subsidiary to pay, when due, or in
conformity with customary trade terms, all lease obligations, all trade debt, and all other
Indebtedness incident to the operations of the Company or its Subsidiaries, except such as are
being contested in good faith and by proper proceedings if the Company or Subsidiary concerned
shall have set aside on its books sufficient reserves, if any, with respect thereto.

               (ii) Maintenance of Insurance. Use its best efforts to maintain from a responsible
and reputable insurance company or association a Directors and Officers insurance policy in an
aggregate amount of at least $5,000,000. Maintain, and cause each Subsidiary to maintain,
insurance with responsible and reputable insurance companies or associations in such amounts and
covering such risks as is customarily carried by companies engaged in similar businesses and owning
similar properties in the same general areas in which the Company or such Subsidiary operates, but
in any event in amounts sufficient to prevent the Company or Subsidiary from becoming a co-insurer.
The Company will continue to include Toronto Dominion Investments, Inc. and The VenGrowth
Investment Fund Inc. as notice parties to such policy and will request that the issuer(s) of such
policy provide such designees with at least ten (10) days’ notice before such policy is terminated
(for failure to pay premiums or otherwise) or assigned, or before any change is made in the
designation of the beneficiary thereof.

               (iii) Preservation of Corporate Existence. Preserve and maintain, and, unless the
Company deems it not to be in its best interests, cause each Subsidiary to preserve and maintain,
its corporate existence, rights, franchises and privileges in the jurisdiction of its
incorporation, and qualify and remain qualified, and cause each Subsidiary to qualify and remain
qualified, as a foreign corporation in each jurisdiction in which such qualification is necessary
or desirable in view of its business and operations or the ownership or lease of its properties.
Secure, preserve and maintain, and cause each Subsidiary to secure, preserve and maintain, all
licenses and other rights to use Intellectual Property Rights owned or possessed by it and deemed
by the Company to be necessary to the conduct of its business and the businesses of its
Subsidiaries, taken as a whole.

               (iv) Compliance with Laws. Comply, and cause each Subsidiary to comply, with the
requirements of all applicable laws, rules, regulations and orders of any governmental authority,
where noncompliance would have a material adverse effect on the Company or any Subsidiary or their
business operations, prospects or condition (financial or otherwise).

               (v) Inspection. Permit, upon reasonable request and notice, each of the Investors
holding at least 3,333,333 Shares (on an as-exchanged and as-converted basis, and as adjusted for
any stock splits, stock dividends, combinations, reclassifications, recapitalizations or similar
events occurring after the date of this Agreement) or any agents or representatives • thereof, to
examine and make copies of and extracts from the books of account of, and visit and inspect the
properties of the Company and any Subsidiary, to discuss the affairs, finances and accounts of the
Company and any Subsidiary with any of its officers, directors or employees and independent
accountants, and consult with and advise the management of the Company and any Subsidiary as to
their affairs, finances and accounts, all at reasonable times during normal business hours.
Subject to the disclosure of information of a non-technical nature, including

 

 

financial information, which such Investor discloses to its partners and/or shareholders
generally, each such Investor agrees that it will keep confidential and will not disclose or
divulge any confidential, proprietary or secret information which such Investor may obtain from the
Company pursuant to financial statements, reports and other materials submitted by the Company as
required hereunder, or pursuant to visitation or inspection rights granted hereunder unless such
information is or becomes known to such Investor from a source other than the Company or is or
becomes publicly known, or unless the Company gives its written consent to such Investor’s release
of such information, except that no such written consent shall be required (and such Investor shall
be free to release such information to such recipient) if such information is to be provided to
such Investor’s counsel or accountant, or to an officer, director or partner of such Investor,
provided that such Investor shall inform the recipient of the confidential nature of such
information, and shall instruct the recipient to treat the information as confidential.

          (vi) Keeping of Records and Books of Account. Keep, and cause each Subsidiary to
keep, adequate records and books of account in which complete entries will be made in accordance
with United States generally accepted accounting principles consistently applied, reflecting all
financial transactions of the Company and any Subsidiary, and in which, for each fiscal year, all
proper reserves for depreciation, depletion, returns of merchandise, obsolescence, amortization,
taxes, bad debts and other purposes in connection with its business shall be made.

          (vii) Maintenance of Properties. Maintain and preserve, and cause each Subsidiary to
maintain and preserve, all of its properties and assets, necessary for the proper conduct of its
business, in good repair, working order and condition, ordinary wear and tear excepted.

          (viii) Financings. Inform the Board of Directors of any negotiations, offers or
contracts relating to possible financings of any nature for the Company, whether initiated by the.
Company or any other Person, except for (A) arrangements with trade creditors, and (B) utilization
by the Company or any Subsidiary of commercial lending arrangements with financial institutions.

          (ix) By-laws.. At all times, cause the bylaws of the Company to provide that, unless
otherwise required by the laws of the State of Delaware, (i) any two directors and (ii) any holder
or holders of at least twenty-five (25%) of the outstanding Registrable Securities, shall have the
right to call a meeting of the Board of Directors or stockholders. At all times maintain
provisions in the bylaws or certificate of incorporation of the Company indemnifying all directors
against liability to the maximum extent permitted under the laws of State of Delaware. Cause each
of its directors and officers, and each director and officer elected or appointed following the
date hereof, to read the bylaws of the Company.

          (x) Proprietary Information and Inventions Agreements. The Company will obtain a duly
executed Proprietary Information and Inventions Agreement in the form previously adopted by the
Company, or in such other form as may be agreed upon by all members of the Board of Directors, from
each future employee and consultant of the Company.

 

 

          (xi) New Developments. Where reasonably practicable, cause all technological
developments, patentable or unpatentable inventions, discoveries or improvements by the Company’s
or any Subsidiary’s officers or employees to be documented in accordance with the appropriate
professional standards and, where possible and deemed by management to be commercially appropriate
based on the advice of legal counsel and other considerations, to file and prosecute United States
and foreign patent or copyright applications relating to and protecting such developments on behalf
of the Company or any Subsidiary.

          (xii) Meetings of Directors. Use its best efforts to cause meetings of the Board of
Directors to be held not less than monthly unless otherwise agreed to by a majority of the Board of
Directors, including four (4) meetings per year (on a quarterly basis), which are held in person,
and not via teleconference or other means except under exceptional circumstances.

          (xiii) Expenses of Directors. Promptly reimburse in full, each director of the
Company for all of his reasonable out-of-pocket expenses incurred in attending each meeting of the
Board of Directors or any committee thereof.

          (xiv) Stock Options. Unless otherwise approved by the Board of Directors (including a
majority of the members of the Board of Directors elected by the holders of Series A-1), (i) all
future grants of stock options and shares of stock to employees and consultants shall vest at the
rate of twenty-five percent (25%) per year (in an annual increment for the first year of an
employee’s first year of full-time employment and monthly thereafter) commencing with the start
date of employment or engagement, and (ii) vesting of such options and restricted stock shall
partially accelerate upon a Change of Control, such that immediately upon such Change of Control
such number of unvested shares underlying such options and/or unvested shares of restricted stock
shall become vested as would have been vested had such Change of Control occurred on the date which
is twelve months after the date of such Change in Control.

          (xv) Compensation Committee. The Board of Directors shall maintain a compensation
committee (the “Compensation Committee”) of the Board of Directors consisting of three
members, two of whom shall be directors elected by holders of Series A-1 Preferred. Subject to
subsection (xiv) above, the Board of Directors may delegate to such Compensation Committee
authority over all forms of compensation to be provided to executive officers, directors of sales
and sales personnel receiving or eligible for commissions of the Company and its Subsidiaries,
including all bonus, stock and other equity compensation, and to act as administrator for the
Company’s or any Subsidiary’s stock plan(s). Decisions of the Compensation Committee shall be
reached by simple majority.

          (xvi) Open Source Software. Prior to any sale, license, distribution or other
transfer of rights, the Company will remove any Publicly Available Software from any core product
components of the Company where the presence of such Publicly Available Software would have a
material adverse effect on the business, prospects, assets or condition, financial or otherwise, of
the Company as determined by the Company in its good faith discretion. It is recognized and agreed
that the Company may use Publicly Available Software for (1) interoperability, interface to
devices, ancillary software, internal development, testing and

 

 

other non-core uses and pm-poses, and (2) use in non-core product components (which may be
sold, licensed, distributed or the rights therein otherwise transferred separately or together with
core product components), so long as such use in non-core product components will not subject the
Company to a material adverse effect on the business, prospects, assets or condition, financial or
otherwise, of the Company. The determination of whether or not a product component or proposed
product component is a “core” product component of the Company and whether the presence of Publicly
Available Software in products or Intellectual Property Rights of the Company will have a material
adverse effect on the business, prospects, assets or condition, financial or otherwise, of the
Company shall be made by the Company in its good faith discretion.

               (xvii) Stock Option Grant Limitations. Notwithstanding that the Board of Directors
and the Stockholders have approved the amendment of the Company’s 2002 Stock Plan (the “New
Plan”) to provide for the issuance of up to 23,048,194 shares of Common Stock, (including
shares of Common Stock subject to outstanding options under the New Plan and shares of Common Stock
previously issued pursuant to the New Plan) (the “New Plan Amount”), the Company covenants
and agrees to issue options and restricted stock under the New Plan for only that number of shares
as is equal to (a) the New Plan Amount less (b) that number of shares of Common Stock (the “Old
Plans Amount”) purchasable pursuant to options outstanding under the Company’s stock plans other
than the New Plan (collectively, the “Old Plans”) as the Old Plans Amount may be reduced
from time to time based on the expiration or irrevocable cancellation of options under the Old
Plans. As of the date hereof, the Old Plans Amount is 639,893 shares of Common Stock. The Company
further covenants and agrees not to issue any additional options to purchase shares of Common Stock
or otherwise issue any shares of Common Stock under the Old Plans other than pursuant to the
options outstanding as of the date hereof and not to increase the number of shares purchasable
under any options outstanding under the Old Plans (except to the extent required for stock splits,
stock dividends, combinations, reclassifications, recapitalizations or other similar events).

               (xviii) European Data Protection Concerns. The Company covenants that it will deliver
to each of its officers and directors on the date hereof, and to each officer and director
appointed or elected after the date hereof, a notice, in the form attached hereto as Exhibit A
regarding Article VIII of the Company’s By-Laws, as amended and in effect on the date hereof, or in
the case of any such officer or director appointed or elected after the date hereof, at the time of
such appointment or election.

          (b) Negative Covenants of the Company. Without limiting any other covenants and
provisions hereof, the Company covenants and agrees that, until the consummation of a Qualified
Public Offering or, while this Agreement remains outstanding, it will comply with and observe the
following covenants and provisions, and will cause each Subsidiary, if and when such Subsidiary
exists, to comply with and observe such of the following covenants and provisions as are applicable
to such Subsidiary, and will not, unless consented to by a majority of the members of the Board of
Directors (including a majority of the members of the Board of Directors elected by the holders of
Series A-1 Preferred), without the written consent or waiver of a majority in interest of the
holders of Registrable Securities:

 

 

               (i) Restrictions on Indebtedness. Create, incur, assume or suffer to exist, or permit
any Subsidiary to create, incur, assume or suffer to exist, any liability with respect to
Indebtedness for money borrowed which exceeds, in the aggregate, $1,000,000.

               (ii) Assumptions or Guaranties of Indebtedness of Other Persons. Assume, guarantee,
endorse or otherwise become directly or contingently liable on, or permit any Subsidiary to assume,
guarantee, endorse or otherwise become directly or contingently liable on (including, without
limitation, liability by way of agreement, contingent or otherwise, to purchase, to provide funds
for payment, to supply funds to or otherwise invest in the debtor or otherwise to assure the
creditor against loss) any Indebtedness of any other Person, except for guaranties by endorsement
of negotiable instruments for deposit or collection in the ordinary course of business, and except
for the guaranties of the permitted obligations of any Subsidiary.

               (iii) Issuance of Reserved Employee Shares. Grant to any of its employees, officers,
directors or consultants options or other rights to purchase Reserved Employee Shares unless
authorized by vote of the Company’s Compensation Committee pursuant to Section 12(a)(xv) hereof or
by the Board of Directors and subject, in all cases, to all other provisions of this Agreement.

               (iv) Dealings with Affiliates and Others. Other than as contemplated by this
Agreement or the Stockholders Agreement by and among the Company, the Canadian Subsidiary, the
Voting Trustee and the other signatories thereto dated as of the date hereof, and other than
transactions in the ordinary course of business involving less than $10,000, enter into, after the
date of this Agreement, any transaction, including, without limitation, any loans or extensions of
credit or royalty agreements, with any officer, director or affiliate of the Company or any
Subsidiary or any member of their respective immediate families or any corporation or other entity
directly or indirectly affiliated with one or more of such officers, directors or members of their
immediate families. The $10,000 limitation above shall not apply to reasonable expense
reimbursement or compensation approved by the Compensation Committee and made pursuant to and in
accordance with the Company’s policies.

               (v) Maintenance of Ownership of Subsidiaries; Activities of Subsidiaries. (A) Sell or
otherwise dispose of any shares of capital stock of any Subsidiary, except to another Subsidiary,
or permit any Subsidiary to issue, sell or otherwise dispose of any shares of its capital stock or
the capital stock of any Subsidiary, except to the Company or another Subsidiary; provided,
however, that the Company may liquidate, merge or consolidate any Subsidiary or Subsidiaries into
or with itself, provided that the Company is the surviving entity, or into or with another
Subsidiary or Subsidiaries; (B) organize or acquire any entity that would be a Subsidiary unless
such Subsidiary is wholly owned (directly or indirectly) by the Company; (C) permit any Subsidiary
to consolidate or merge into or with another entity or sell or transfer all or substantially all
its assets, except that any Subsidiary may (x) consolidate or merge into or with or sell or
transfer assets to any other Subsidiary, or (y) merge into or sell or transfer assets to the
Company; or (D) permit any Subsidiary (other than the Canadian Subsidiary in accordance with the
share provisions applicable to the Exchangeable Shares issued by the Canadian Subsidiary) to
purchase or set aside any sums for the purchase of, or pay any dividend or make any distribution
on, any shares of its stock, except for dividends or other distributions payable to the Company or
another Subsidiary.

 

 

               (vi) Transfers of Technology. Transfer any ownership or interest in, or material
rights relating to, any of the Intellectual Property Rights of the Company or any Subsidiary to any
Person or entity which is not a member of the consolidated group of the Company and its
Subsidiaries; provided, however, that this Section shall not apply to transfers of Intellectual
Property Rights accomplished in the ordinary course of business.

               (vii) Material Expenditures. Make, or permit any Subsidiary to make, any expenditures
(other than expenses for inventory or equipment purchases in the ordinary course of business) in
excess of $1,000,000 in the aggregate in any fiscal year, or any individual expenditure in excess
of $500,000, and not included in the Company’s annual operating budget, or any acquisition by the
Company or any Subsidiary of another person or entity for a consideration in excess of $100,000.

               (viii) Accounting Methods. Make any changes in auditors, or the accounting methods or
policies of the Company or any Subsidiary, other than in accordance with United States generally
accepted accounting principles;

               (ix) Security Interests. Pledge the assets of the Company or any Subsidiary, or
permit any Subsidiary to pledge its assets, for any purpose, except for (i) operating purposes in
the normal course of the Company or such Subsidiary’s business including working capital needs,
improvement and expansion and (ii) in connection with purchase financing by the Company or such
Subsidiary.

               (x) Change in Nature of Business. Make, or permit any Subsidiary to make, any
material change in the nature of the business of the Company or any Subsidiary as contemplated in
written materials delivered to the Investors.

               (xi) Restriction on Option Grants. Make, or permit any Subsidiary to make, any grants
of stock options or other equity interests in any Subsidiary to employees, officers, directors,
consultants or other individuals, including pursuant to the 1998 Stock Option Plan and/or 2000
Stock Option Plan of the Canadian Subsidiary.

          (c) Reporting Requirements. As long as there are Shares outstanding or until the
consummation of a Qualified Public Offering, the Company will furnish the following to the
Investors holding at least 416,666 Shares (on an as-exchanged and as-converted basis, and as
adjusted for any stock splits, stock dividends, combinations, reclassifications, recapitalizations
or similar events occurring after the date of this Agreement) (the “Qualified Investors”):

               (i) Monthly Reports: as soon as available and in any event within 30 days after the
end of each calendar month, unaudited consolidated financial statements of the Company and its
Subsidiaries as of the end of such month and statements of earnings and retained earnings and cash
flows of the Company and its Subsidiaries for such month and fiscal year to date, and in each case
compared to the budget and the prior year, and including a schedule showing each major capital
expenditure during such month, and a summary discussion of the Company’s principal functional
areas, all in reasonable detail;

               (ii) Quarterly Reports: as soon as available and in any event within 45 days after the
end of each of the first three quarters of each fiscal year of the Company,

 

 

consolidated financial statements of the Company and its Subsidiaries as of the end of such
quarter and statements of earnings and retained earnings and cash flows of the Company and its
Subsidiaries for such quarter and fiscal year to date, and in each case compared to the budget and
the prior year, and including a schedule showing each major capital expenditure during such
quarter, and a summary discussion of the Company’s principal functional areas, all in reasonable
detail and duly certified by the chief financial officer of the Company as having been prepared in
accordance with United States generally accepted accounting principles consistently applied
(subject to year-end audit adjustments);

               (iii) Annual Reports: as soon as available and in any event within 90 days after the
end of each fiscal year of the Company, a copy of the annual audited financial statements for such
year for the Company and its Subsidiaries, including therein consolidated balance sheets of the
Company and its Subsidiaries as of the end of such fiscal year and consolidated statements of
operations and cash flow of the Company and its Subsidiaries for such fiscal year, setting forth in
each case in comparative form the corresponding figures for the preceding fiscal year, all such
consolidated statements to be duly certified by the chief financial officer of the Company and by
such independent public accountants of recognized national standing approved by a majority of the
Board of Directors; provided, however, that any information related to SR&ED tax credits may be
furnished as soon as available and in any event within 120 days after the end of each fiscal year;

               (iv) Budgets: as soon as available after approval by the Board of Directors and in any
event at least 30 days prior to the beginning of each fiscal year at the Company, a business plan
and annual budgets including monthly details, for the forthcoming fiscal year, unless otherwise
approved by a majority of the Board of Directors; and

               (v) Other Information: such other information respecting the business, properties or
the condition or operations, financial or other, of the Company or any of its Subsidiaries as any
such Qualified Investor may from time to time reasonably request.

     The holders of Registrable Securities hereby covenant and agree that all of the information
disclosed to such holders pursuant to the provisions of this Section 12(c) shall be treated in
accordance with Section 12(a)(v) of this Agreement.

          (d) Observer Rights.

               (i) Until the consummation of a Qualified Public Offering, the Company shall invite
representatives with relevant knowledge of the Company’s industry (each, a
“Representative”) sponsored by (i) if at any time Samsung does not have the right to
designate a member of the Board of Directors pursuant to Section 6 of the Company’s Amended and
Restated Stockholders. Agreement (the “Stockholders Agreement”), dated as of the date
hereof, Samsung, (ii) if at any time 3i Technology Partners L.P. (“3i”) does not have the
right to designate a member of the Board of Directors pursuant to Section 6 of the Stockholders
Agreement, 3i, and (iii) if at any time The VenGrowth Investment Fund Inc. and The VenGrowth II
Investment Fund Inc. (together, “VenGrowth”) do not have the right to designate a member
of the Board of Directors pursuant to Section 6 of the Stockholders Agreement, VenGrowth, in each
case to attend at the expense of the respective sponsoring party in a

 

 

nonvoting observer capacity all meetings of the Board of Directors and, in this respect, shall
give each Representative copies of all notices, minutes, consents, and other material that it
provides to its directors (subject to the limitations and exceptions in this Section 12(d)). Each
Representative shall be subject to the approval of the Board of Directors in its good faith
judgment. No Representative will have the right to attend any meetings of the committees of the
Board of Directors.

                 (ii) The Company reserves the right to exclude any Representative from access to any material
or meeting or portion thereof if the Company believes that such exclusion is reasonably necessary
to preserve the attorney-client privilege, fulfill the Company’s obligations with respect to
confidential or proprietary or similar confidential information of third parties, or preserve the
integrity of the Company’s trade secrets, or protect similar proprietary information.

                 (iii) Each Representative shall immediately report to the Board of Directors if he or she
becomes aware of the existence of conflict of interest of such Representative or the business
organization affiliated with such Representative (for the purpose of such determination, it shall
be assumed that the Representative is in a fiduciary relationship with the Company). In the event
that a majority of the Board, acting reasonably and in good faith (and after deliberation in a
closed session in which they can exclude the applicable Representative), determines that the
presence of the Representative at portions of a Board meeting would result in an actual or
potential conflict of interest, inhibit deliberations by the Board on a material matter or could
otherwise be injurious to the Company, the Company shall have the right to exclude the
Representative from portions of any meetings of the Board dealing with such matter and to omit to
provide the Representative with certain information if such information involves information or
analysis dealing with such matter.

                 (iv) Samsung, 3i and VenGrowth each covenants and agrees that all of the information disclosed
to its Representative pursuant to the provisions of this Section 12(d) shall be treated in
accordance with Section 12(a)(v) of this Agreement. Each person who is sponsored as a
Representative, shall agree to treat information disclosed to him or here in accordance with
Section 12(a)(v) of this Agreement and to otherwise comply with the requirements of this Section
12(d).

                 (v) Notwithstanding the foregoing, in the event any of Samsung, VenGrowth or 3i for any reason
ceases to hold Shares representing a value of at least $1,250,000 calculated based on the original
cost of such capital stock, then such party shall no longer be entitled to sponsor an observer as
specified above.

          (e) Notice of Certain Transactions. Samsung shall be entitled to notice in the event
that the Company receives a bona fide offer to be acquired by means of (i) a merger, consolidation
or other business combination pursuant to which the stockholders of the Company immediately prior
to the effective time of such transaction have beneficial ownership of less than a majority of the
total combined voting power with respect to the election of directors of the surviving entity (and
the entity that controls such surviving entity) immediately following such transaction, or (ii) the
sale, lease or other disposition of all or substantially all of the assets of the Company, within
ten (10) business days after receipt of a proposal for any such transaction. The

 

 

Company shall provide Samsung only with written notice that an offer has been received and
shall not be required to disclose the name of the proposed acquirer or any summary of the terms of
the proposed transaction. Samsung agrees that information disclosed to it pursuant to the
provisions of this Section 12(e) shall be treated in accordance with Section 12(a)(v) of this
Agreement.

     13. Representations and Warranties of the Company and the Canadian Subsidiary. The
Company and the Canadian Subsidiary represent and warrant as follows:

               (a) The execution, delivery and performance of this Agreement by the Company and the Canadian
Subsidiary have been duly authorized by all requisite corporate action and will not violate any
provision of law, any order of any court or other agency of government, the charter or by-laws of
the Company or the Canadian Subsidiary or any provision of any indenture, agreement or other
instrument to which the Company or the Canadian Subsidiaries or any of their properties or assets
is bound, conflict with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any such indenture, agreement or other instrument or result in the creation
or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the
properties or assets of the Company or the Canadian Subsidiary.

               (b) This Agreement has been duly executed and delivered by the Company and the Canadian
Subsidiary and constitutes the legal, valid and binding obligation of the Company and the Canadian
Subsidiary, enforceable in accordance with its terms.

     14. Confidentiality.

               (a) The Investors agree that the Company may use their names in connection with an
announcement regarding the sale of the Shares, subject to the approval of any such announcement by
the applicable Investor or Investors, which approval shall not be unreasonably withheld or delayed,
and to permit the Company to make other reasonable uses of the Investors’ names such as disclosure
to be made at investor or analyst conferences and boilerplate disclosure that the Company may use
in connection with press releases and other company announcements.

               (b) If the Company believes public disclosure of Samsung’s relationship with the Company is
required by law, it shall no less than five (5) days prior to the filing of such public disclosure
(including, without limitation, filing any document or material with the Commission, or any other
competent regulatory authority, which contains a reference to Samsung) provide Samsung with notice
of and a copy of such disclosure, and revise such disclosure as reasonably requested by Samsung
within two (2) days following the delivery of such information to Samsung, and if available, seek
confidential treatment for such portions of such disclosure as may be reasonably requested by
Samsung.

     15. Affiliates of Investors. (a) Any right of an Investor pursuant to this Agreement
may, at the option of such Investor and subject to applicable law, be exercised by any Affiliate of
such Investor, and (b) all Shares held or acquired by any Affiliate of any Investor shall be
aggregated together with Shares held or acquired by such Investor for the purpose of determining
the availability of any rights under this Agreement; provided, however, that in each case such

 

 

Affiliate agrees in writing to be bound by the terms hereof to the same extent as if such
Affiliate were an Investor hereunder.

     16. Miscellaneous.

          (a) Preferred Stock Conversion and Reverse Stock Split. All references to share and
dollar amounts in this Agreement reflect and give effect to the Preferred Stock Conversion and
Reverse Stock Split.

          (b) Successors and Assigns; Certain Transfers. All covenants and agreements contained
in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit
of the respective successors and assigns of the parties hereto (including without limitation
permitted transferees of any Registrable Securities), whether so expressed or not, provided,
however, that registration rights conferred herein on the Investors shall only inure to the benefit
of a transferee of Registrable Securities if (i) there is transferred to such transferee at least
1,666,667 shares of Registrable Securities (subject to equitable adjustment in the event of any
stock splits, stock dividends, combinations, reclassifications, recapitalizations or other similar
events occurring after the date of this Agreement) or (ii) such transferee is, in the case of a
transfer by a partnership, a partner or retired partner, in the case of a transfer by a limited
liability company, a member or former member, or in any other case, a shareholder or affiliate, of
a party hereto; and provided further, however, that in all cases such transferees agree in writing
to be bound by the terms hereof to the same extent as if such transferees were Investors hereunder.

          (c) Notices. All notices, requests, consents and other communications hereunder shall
be in writing and , and shall be deemed to have been given: (a) upon receipt, if given by courier
or overnight delivery service guaranteeing next day delivery; (b) on the date of transmission, if
sent by facsimile during normal business hours or on the next succeeding business day if sent
during other than normal business hours; or (c) five (5) days after being deposited in the mail
postage prepaid, addressed as follows:

          if to the Company or any other party hereto, at the address of such party set forth in the
Purchase Agreement;

          if to any subsequent holder of Registrable Securities, to it at such address as may have been
furnished to the Company in writing by such holder;

or, in any case, at such other address or addresses as shall have been furnished in writing to the
Company (in the case of a holder of Registrable Securities) or to the holders of Registrable
Securities (in the case of the Company) in accordance with the provisions of this paragraph.

          (d) Governing Law. This Agreement shall be governed by and construed in accordance
with the General Corporation Law of the State of Delaware as to matters within the scope thereof,
and as to all other matters shall be governed by and construed in accordance with the internal laws
of the Commonwealth of Massachusetts, without regard to its principles of conflicts of laws.

 

 

          (e) Waiver; Amendment.

               (i) Any of the rights of holders of Registrable Securities pursuant to this Agreement may be
waived by an instrument in writing executed and delivered by the holders of a majority in interest
of the Preferred Registrable Securities; provided, however, that any rights of any Regulated Fund
pursuant to Section 10(f) hereof may not be waived without the written consent of such Regulated
Fund. Any waiver effected in accordance with this paragraph shall be binding on all holders of
Registrable Securities. Any waiver by any party of a breach of any provision of this Agreement
shall not operate or be construed as a waiver of any subsequent breach of that provision or of any
other provision hereof.

               (ii) This Agreement may not be amended or modified, and except as provided in subsection
(e)(i) above, no provision hereof may be waived, without the written consent of the Company and the
holders of a majority in interest of the Preferred Registrable Securities. Notwithstanding the
foregoing, (A) no amendment to Section 10(f) hereof which adversely affects a Regulated Fund’s
rights thereunder shall be effective without the written consent of such Regulated Fund, and (B) no
amendment to this Agreement that materially and adversely affects Investors holding Exchangeable
Shares in a manner different than the Investors holding shares of capital stock of the Company
shall be effective without the written consent of a majority in interest of the Investors holding
Exchangeable Shares. Additional purchasers of Series A-1 Preferred or Class A-1 Exchangeable
Shares pursuant to the Purchase Agreement who are not already parties to this Agreement may become
parties to this Agreement without further action or consent by any party thereto, by executing and
delivering to the Company an Instrument of Accession. Such additional purchasers shall thereafter
be “Investors” for purposes of this Agreement and Schedule A shall be updated accordingly.

          (g) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          (h) Termination of Registration Obligations. The obligations of the Company to
register shares of Registrable Securities under Sections 3, 4 or 5 shall terminate on the earlier
of: (i) the fifth anniversary of the date of a Qualified Public Offering or (ii) with respect to
any particular shares of Registrable Securities, the date on which such Registrable Securities are
eligible for resale pursuant to Rule 144(k) promulgated under the Securities Act.

          (i) Lock-up. If requested in writing by the underwriters for the initial underwritten
public offering of securities of the Company, each holder of Registrable Securities who is a party
to this Agreement hereby agrees in connection with such initial public offering, not to sell
publicly any shares of Registrable Securities or any other shares of Common Stock (other than
shares of Registrable Securities or other shares of Common Stock being registered in such
offering), without the consent of the managing underwriter for a period not to exceed 180 days
following the effective date of the registration statement relating to such offering and, at such
underwriter’s request, shall sign a lock-up agreement to such effect; provided, however, that all
persons entitled to registration rights with respect to shares of Common Stock who are not parties
to this Agreement, all other persons selling shares of Common Stock in such offering, all persons
holding in excess of five percent (5%) of the capital stock of the Company on a fully

 

 

diluted basis and all executive officers and directors of the Company shall also have agreed
not to sell publicly any Registrable Securities or other shares of Common Stock under the
circumstances and pursuant to the terms set forth in this Section 16(i); and provided, further,
however, that any such lock-up agreement shall provide that if the managing underwriter releases
any shares from the lock-up with respect to such offering (other than discretionary releases due to
financial hardship with respect to such number of shares as does not exceed an aggregate of $50,000
in value for any holder) prior to the scheduled expiration date, the managing underwriter shall
contemporaneously release a pro rata portion of the Registrable Securities held by all other
persons subject to such lock-up. Notwithstanding the foregoing, if: (x) during the last 17 days of
the 180-day lock-up period the Company issues an earnings release or material news or a material
event relating to the Company occurs; or (y) prior to the
expiration of the 180-day lock-up period,
the Company announces that it will release earnings results during the 16-day period beginning on
the last day of the 180-day lock-up period, the restrictions described above shall continue to
apply until the expiration of the 18-day period beginning on the issuance of the earnings release
or the occurrence of the material news or material event.

          (j) Subsequent Grants of Registration Rights. Except to the extent that additional
purchasers of Series A-1 Preferred and Class A-1 Exchangeable Shares are permitted to become
parties to this agreement after the date hereof, the Company shall not grant to any third party any
registration rights more favorable than or inconsistent with any of those contained herein, so long
as any of the registration rights under this Agreement remains in effect.

          (k) Severability. If any provision of this Agreement shall be held to be illegal,
invalid or unenforceable, such illegality, invalidity or unenforceability shall attach only to such
provision and shall not in any manner affect or render illegal, invalid or unenforceable any other
provision of this Agreement, and this Agreement shall be carried out as if any such illegal,
invalid or unenforceable provision were not contained herein.

          (l) Entire Agreement. This Agreement amends, restates and supersedes the Prior
Agreement in its entirety and the Company and the Investors representing the holders of a majority
in interest of the Registrable Securities hereby consent to such amendment and restatement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 

	 	 	SIGE SEMICONDUCTOR, INC.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ William H. Burke
 

William H. Burke
	 	 
	 

	 	Title:
	 	Chief Financial Officer and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	SIGE SEMICONDUCTOR INC.,	 	 
	 	 	a Canadian corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ William H. Burke
 

William H. Burke
	 	 
	 

	 	Title:
	 	Chief Financial Officer and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	FRASER MILNER CASGRAIN LLP,	 	 
	 	 	as Voting Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ A. Johnson
 

A. Johnson
	 	 
	 

	 	Title:
	 	Partner	 	 

 

 

	 	 	 	 	 	 	 

	 	 	INVESTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	SVIC NO. 4 NEW TECHNOLOGY BUSINESS INVESTMENT L.L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By:     Samsung Venture Investment Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Sang Ki Kim
 

Sang Ki Kim
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BDC CAPITAL INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	CAISSE DE DEPOT ET PLACEMENT DU QUEBEC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	Nicholas Deeble	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	David Edwards	 	 

 

 

	 	 	 	 	 	 	 

	 	 	LAWRENCE ENTERPRISE FUND INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LOEB INVESTORS CO. 142, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	Dr. John B. Millard	 	 

	 	 	 	 	 	 	 	 	 	 	 

	 	 	PRISM VENTURE PARTNERS IV, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Prism Investment Partners IV, L.P.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Prism Venture Partners IV, L.L.C.	 	 
	 	 	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ William M. Seifert
 

Managing Director
	 	 

	 	 	 	 	 	 	 

	 
	 	 	 	 	 
	 	 	Paul M. Russo	 	 
	 
	 	 	 	 	 	 
	 	 	Thomas P. Jalkut, as Trustee for SANIBEL TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	 	 	3i TECHNOLOGY PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	3i Technology Associates LLC,	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	3i Technology Corporation,	 	 
	 	 	 	 	 	 	its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Jim McLean
 

	 	 
	 	 	 	 	 	 	Name: Jim McLean	 	 
	 	 	 	 	 	 	Title: Vice President	 	 

	 	 	 	 	 	 	 

	 	 	TD CAPITAL GROUP LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rick Greene
 

	 	 
	 	 	Name: Rick Greene	 	 
	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	And	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frank Gawlinth
 

	 	 
	 	 	Name: Frank Gawlinth	 	 
	 	 	Title: Vice President & Director	 	 
	 
	 	 	 	 	 	 
	 	 	TORONTO DOMINION INVESTMENTS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Martha L. Gariepy
 

	 	 
	 	 	Name: Martha L. Gariepy	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	TRUDELL MEDICAL LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 

	 	 	THE VENGROWTH III INVESTMENT FUND INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Allen Lupyrypo
 

Allen Lupyrypo
	 	 
	 

	 	Title:
	 	Managing General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	And	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jay Heller	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jay Heller	 	 
	 

	 	Title:
	 	General Partner	 	 

 

 

	 	 	 	 	 	 	 

	 	 	THE VENGROWTH INVESTMENT FUND INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Pat DiPietro
 

Pat DiPietro
	 	 
	 

	 	Title:
	 	Managing General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	And	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jay Heller	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jay Heller	 	 
	 

	 	Title:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	THE VENGROWTH II INVESTMENT FUND INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pat DiPietro	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Pat DiPietro	 	 
	 

	 	Title:
	 	Managing General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	And	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jay Heller	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jay Heller	 	 
	 

	 	Title:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	HUNT VENTURES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NIF VENTURES CO., LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit A

Notice Regarding European Directive on Data Protection

     This Notice of Article VIII of the By-Laws of SiGe Semiconductor, Inc. (the “Company”)
is being delivered to you pursuant to Section 12(a)(xviii) of that certain Amended and Restated
Investor Rights Agreement, dated May 8, 2007 (the “Rights Agreement”) by and among the
Company, the Canadian Subsidiary and the Investors (as defined in the Rights Agreement).

     3i Group plc, a holding company of one of the holders of the Company’s Preferred Stock (the
“3i Entity”), is incorporated in Europe and is subject to a European Directive on data
protection (as enshrined by UK Act of Parliament in The Data Protection Act of 1998) (the
“Directive”). The primary effect of the Directive is to prohibit the processing of personal
data without notification and consent. Because it is possible that the 3i Entities may be deemed to
have processed personal data within the meaning of the Directive in connection with their
investments in portfolio companies, the 3i Entity requires each of their portfolio companies to
insert certain standard language regarding the Directive into such portfolio company’s certificate
of incorporation or bylaws. The language regarding the Directive contained in the Company’s
Certificate of Incorporation is set forth below:

For the purposes of all applicable legislation and regulation, each of the
stockholders, officers and directors of SiGe Semiconductor, Inc. authorize 3i
Technology II Partners LP, 3i Group plc and affiliates of 3i Group plc (both within
and outside the United States) (“3i Group”) to process (but only amongst the 3i
Group and its advisers and only within the meaning of European Directive 95/46/EC)
any data or information concerning them which is obtained in the course of its and
their due diligence and other investment business. The data and information which
may be processed for such purposes shall include any information which may have a
bearing on the prudence or commercial merits of investing, or disposing of any stock
(or other investment or security) in the Company. Nothing in this authority shall
entitle any 3i Group entity to make any disclosure of such data or information for
third parties.

 

 

SCHEDULE A

SCHEDULE OF INVESTORS

BDC CAPITAL INC.

5 Place Ville-Marie,

Suite 300,

Montreal, Quebec, H3B 2E7

CANADA

Attn: Sylvain Gendron

Fax: (514) 283-9731

Caisse de depot et placement du Quebec

Vantage Point Venture Partners

Suite 1240

1200 McGill College

Montreal, Quebec H3B 4G7

CANADA

Attention: Jean-David Begin

Fax: (514) 847-2628

Nicholas Deeble

42 Foothills Drive

Nepean, Ontario

K2H 6K3 Canada

David Edwards

38 Roycroft Way

Kanapa, Ontario

K2W 1C7 Canada

Valentine Edwards

38 Roycroft Way

Kanapa, Ontario

K2W 1C7 Canada

GrowthWorks Canadian Fund Ltd.

200 Queen Street West

Suite 3504

Toronto, ON M5H 3R3

CANADA

Attn: Richard Charlesbois

Fax:                    

Robert Huband

19 Warbonnet Drive

Ottawa, Ontario

K2E 5L9 Canada

 

 

David Humphrys

173 Timber Lane

Fitzroy Harbour, Ontario

KOA 1X0 Canada

Hunt Ventures, L.P.

Building 1, Suite 500

6300 Ridge Point Parkway

Austin, TX 78701

Attn: Steve Coffey

Fax: (512) 795-5849

Colin Hurman

RR #3, 1265 County Road 43

Merrickville, Ontario

K0G 1N0 Canada

Investment Enterprise Partnership “NIF 21-ONE (1)

NIF Ventures Co., Ltd.

1-2-1 Kyobashi Chuo-ku

Tokyo 104-0031

JAPAN

Attention: Yasuo Miyazawa

Fax: +81 (0)3 5201 1518

With a copy to:

Suite 220

2300 Geng Road

Palo Alto, CA 94303

Attention: Yasuo Miyazawa

Fax: (650) 858-0892

Lawrence Enterprise Fund Inc.

Lawrence Venture Fund Inc.

Lawrence Technology Venture Fund Inc.

c/o Lawrence & Company Inc.

Suite 1500, 70 York Street

Toronto, ON M5J 1S9

CANADA

Attn: Grant McCutcheon

Fax: (416) 362-0063

 

 

Loeb Investors Co. 142, L.P.

c/o Harvey L. Tepner

Compass Advisors, LLP

599 Lexington Avenue

New York, NY 10022

Fax: (212) 594-7701

Dr. John B. Millard

200 County Road

Cullman, AL 35057

Fax: (256) 287-1004

Prism Venture Partners IV, L.P.

Suite 2500

100 Lowder Brook Drive

Westwood, MA 02492

Attn: Daniel Wright

Fax: (781) 302-4040

Paul M. Russo

c/o Silicon Optix Inc.

13050 La Paloma Rd.

Los Altos Hills, CA 94022

Fax: (408) 487-9299

RWI Ventures

2440 Sand Hill Road,

Suite 100,

Menlo Park, CA 94025

Attention: William R. Baumel

Fax: (650) 543-3339

SVIC No. 4 New Technology Investment L.L.P.

16th Fl. KIPS Center 647-9, Yeoksam-Dong,

Gangnam-Gu, Seoul, Korea 135-980

Fax: 82 2 3430-5566

Sanibel Trust

Thomas P. Jalkut, Trustee

c/o Mr. W.H. MacCrellish, Jr.

Nutter, McClennan & Fish

155 Seaport Boulevard

Boston MA 02110

U.S.A.

Attention: W.H. MacCrellish

Fax: (617) 973-9748

 

 

3i Technology Partners L.P.

880 Winter Street, Suite 330

Waltham, MA 02451

Attn: Peter Bollier

Fax: (781) 890-8301

Toronto Dominion Investments, Inc.

TD Capital Group Limited

29th Floor

101 Federal Street

Boston, MA 02113

Attn: Paul Ciriello

Fax: (617) 425-0801

Trudell Medical Limited

725 Third Street

London ON N5V 5G4

CANADA

Attention: Bob Paterson

Fax: (519) 455-4469

The VenGrowth Investment Fund Inc.

The VenGrowth II Investment Fund Inc.

The VenGrowth III Investment Fund Inc.

105 Adelaide Street West

Suite 1000

Toronto, Ontario M5H 1P9

CANADA

Attn: Chief Financial Officer

Fax: (416) 971-6519

With a copy to:

411 Legget Drive

Suite 705

Kanata, ON K2K 3C9

CANADA

Fax: (613) 591-7377

Attention: Pat DiPietro

Vista Ventures Advantage, L.P.

1011 Walnut Street, Suite 410

Boulder, Colorado 80302

Attention: Molly Nasky

Fax: (303) 543-5717

 

 

SCHEDULE B

SIGE SEMICONDUCTOR, INC.

INSTRUMENT OF ACCESSION

     The undersigned,                                         , as a condition precedent to becoming the owner or
holder of record of                                          (                    ) shares of the                
      stock, [par value $0.0001
per share,] of [SiGe Semiconductor, Inc., a Delaware corporation] [SiGe Semiconductor Inc., a
Canadian corporation] (the “Company”), hereby agrees to become a party to and be bound by that
certain Amended and Restated Investor Rights Agreement dated as of May 8, 2007 by and among the
Company, Fraser Milner Casgrain LLP and certain stockholders of the Company (the “Agreement”) as an
Investor thereunder subject to all of the restrictions and conditions set forth in such Agreement.
This Instrument of Accession shall take effect and shall become an integral part of the Agreement
immediately upon acceptance by the Company.

     IN WITNESS WHEREOF, this INSTRUMENT OF ACCESSION has been duly executed by or on behalf of the
undersigned under the laws of the Commonwealth of Massachusetts as of the date below written.

	 	 	 	 	 	 	 

	 

	 	Signature:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	(Print Name)	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Accepted:	 	 
	 
	 	 	 	 	 	 
	 	 	SIGE SEMICONDUCTOR, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]