Document:

Exhibit 4.1

 

AMENDMENT NO. 1 TO

AMENDED AND RESTATED RIGHTS AGREEMENT

This Amendment No. 1 to the Amended and Restated Rights Agreement (this “Amendment”), dated as of February 10, 2017, is made by and between GigPeak, Inc., a Delaware corporation formerly known as GigOptix, Inc. (the “Company”), and American Stock Transfer & Trust Company, LLC, a New York limited liability company, as rights agent (the “Rights Agent”), and amends the Amended and Restated Rights Agreement, dated as of December 16, 2014, by and between the Company and the Rights Agent (the “Rights Agreement”).  Capitalized terms used in this Amendment and not otherwise defined below shall have the meanings given them in the Rights Agreement.

WHEREAS, the Company intends to enter into an Agreement and Plan of Merger (the “Merger Agreement”), among the Company, Integrated Device Technology, Inc., a Delaware corporation (“Parent”) and Glider Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Purchaser”), pursuant to which Parent intends to acquire all of the outstanding capital stock of the Company pursuant to the consummation by Purchaser of a tender offer for all of the issued and outstanding capital stock of the Company (the “Offer”), followed by a second-step merger of Purchaser with and into the Company, by which the Company will become a wholly-owned subsidiary of Parent (the “Merger”), the Board of Directors of the Company having approved the Merger Agreement, the Merger and the transactions contemplated thereby;

WHEREAS, in connection with the Merger Agreement and the transactions contemplated thereby, the Company desires to amend the Rights Agreement in certain respects as set forth herein, including to except from the operation of the Rights Agreement the Merger Agreement, the Offer, the Merger and any and all other transactions contemplated by the Merger Agreement and to provide that the Rights Agreement shall expire immediately prior to the Acceptance Time (as defined in the Merger Agreement); and

WHEREAS, pursuant to Section 27 of the Rights Agreement, the Board of Directors of the Company has determined that an amendment to the Rights Agreement as set forth herein is desirable and does not materially adversely affect the interest of the holders of Rights Certificates, and the Company and the Rights Agent now desire to evidence such amendment in writing.

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth in the Rights Agreement and herein, the parties hereto agree as follows:

1.    Amendment of Section 1.  Section 1 of the Rights Agreement is hereby supplemented and amended to add the following definitions in the appropriate alphabetical locations.

“Acceptance Time” shall have the meaning ascribed to such term in the Merger Agreement.

“Merger” shall have the term ascribed to such term in the Merger Agreement.

“Merger Agreement” shall mean the Agreement and Plan of Merger, to be entered into on or about February 11, 2017, by and among the Company, Parent and Purchaser (as the same may be amended from time to time).

“Parent” shall mean Integrated Device Technology, Inc., a Delaware corporation.

“Purchaser” shall mean Glider Merger Sub, Inc., a Delaware corporation.

2.    Amendment of Definition of “Acquiring Person”.  The definition of “Acquiring Person” in Section 1(a) of the Rights Agreement is hereby supplemented and amended by inserting the following sentence after the last sentence thereof:

“Notwithstanding anything in this Agreement to the contrary, neither Parent, Purchaser, nor any of their respective Affiliates or Associates shall be deemed, individually or collectively, to be an Acquiring Person as a result of the public announcement, approval, execution, delivery or performance of (i) the Merger Agreement, (ii) the consummation of the Offer (iii) the consummation of the Merger or (iv) any of the other transactions contemplated by the Merger Agreement (including, without limitation, execution and delivery of the Tender Agreement (as defined in the Merger Agreement)).”

3.    Amendment of Definition of “Stock Acquisition Date”.  The definition of “Stock Acquisition Date” in Section 1(hh) of the Rights Agreement is supplemented and amended by inserting the following sentence at the end thereof:

“Notwithstanding anything in this Agreement to the contrary, a Stock Acquisition Date shall not be deemed to have occurred as a result of the public announcement, approval, execution, delivery or performance of (i) the Merger Agreement, (ii) the consummation of the Offer, (iii) the consummation of the Merger or (iv) any of the other transactions contemplated by the Merger Agreement (including, without limitation, execution and delivery of the Tender Agreement).”

4.    Amendment to Section 3(a).  Section 3(a) of the Rights Agreement is supplemented and amended by inserting the following sentence after the first sentence thereof:

“Notwithstanding anything in this Agreement to the contrary, a Distribution Date shall not be deemed to have occurred as a result of the public announcement, approval, execution, delivery or performance of (i) the Merger Agreement, (ii) the consummation of the Offer, (iii) the consummation of the Merger or (iv) any of the other transactions contemplated by the Merger Agreement (including, without limitation, execution and delivery of the Tender Agreement).”

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6.    Amendment to Section 7(a).  Section 7(a) of the Rights Agreement is hereby amended and restated in its entirety to read as follows:

“(a)       The Rights shall not be exercisable until, and shall become exercisable on, the Distribution Date (unless otherwise provided herein, including, without limitation, the restrictions on exercisability set forth in Sections 7(e) and 23(a) hereof). Except as otherwise provided herein, the Rights may be exercised, in whole or in part, at any time commencing with the Distribution Date upon surrender of the Rights Certificate, with the form of election to purchase on the reverse side thereof duly executed (with signatures duly guaranteed), to the Rights Agent at the principal office of the Rights Agent, together with payment of the Purchase Price for each Right exercised, subject to adjustment as hereinafter provided, at or prior to the Close of Business on the earlier of (i) the earlier of December 16, 2017 or immediately prior to the Acceptance Time (the “Final Expiration Date”), (ii) the date on which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), or (iii) the time at which such Rights are exchanged as provided in Section 24 hereof (such earlier date being herein referred to as the “Expiration Date”).”

7.    New Section 35.  A new Section 35 is hereby added to the Rights Agreement immediately following Section 34 of the Rights Agreement, and such new Section 35 shall read as follows:

“Effect of Merger.  For the avoidance of doubt, and in addition to the other provisions in this Agreement to such effect, the public announcement, approval, execution, delivery and performance of the Merger Agreement, and the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement (including, without limitation, execution and delivery of the Tender Agreement), shall not have any effect on the rights of any Person under this Agreement (except as set forth in Section 7(a) hereof) and this Agreement shall otherwise be inapplicable to the Merger Agreement, the Offer, the Merger and any other transactions contemplated by the Merger Agreement (including, without limitation, the execution and delivery of the Tender Agreement).  Immediately prior to the Acceptance Time (and contingent upon the occurrence of the Acceptance Time), this Agreement shall terminate and shall be of no further force or effect, and the rights shall be cancelled and shall no longer be outstanding without compensation therefor and without further action by the Company or any holder of Rights.  From and after the Acceptance Time, neither the Company, Parent, Purchaser, the Surviving Corporation (as such term defined in the Merger Agreement), nor any of their respective Affiliates shall have any obligations to any holder or former holder of Rights.”

8.    Miscellaneous

(a)           This Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

(b)           Except as specifically modified herein, the Rights Agreement shall not otherwise be supplemented or amended by virtue of this Amendment, but shall remain in full force and effect.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, constitute a waiver or amendment of any provision of the Rights Agreement.  Upon and after the effectiveness of this Amendment, each reference in the Rights Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Rights Agreement, and each reference in any other document to “the Rights Agreement”, “thereunder”, “thereof” or words of like import referring to the Rights Agreement, shall mean and be a reference to the Rights Agreement as modified hereby.

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(c)            This Amendment shall be deemed effective as of the date first written above, as if executed on such date.

(d)           This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made and performed entirely within such state.

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IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed, all as of the day and year first above written.

	
Attest:

	 	
GIGPEAK, INC.

	 	 	 	 	 
	 	 	 	 	 
	
By

	
/s Darren Ma

	 	
By

	
s/ Dr. Avi Katz

	 	
Name: Darren Ma

	 	 	
Name: Dr. Avi Katz

	 	 	 	 	
Title: President and Chief Executive Officer

	 	 	 	 	 
	 	 	 	 	 
	
Attest:

	 	
AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

	 	 	 	 	 
	 	 	 	 	 
	
By

	
/s Stanley Siekierski

	 	
By

	
/s Jennifer Donovan

	 	
Name: Stanley Siekierski

	 	 	
Name: Jennifer Donovan

	 	 	 	 	
Title: SVP

Signature Page to Amendment No. 1 to the Amended and Restated Rights AgreementExhibit 10.1

February 7, 2017

Raluca Dinu

Dear Raluca:

As you know, Integrated Device Technology, Inc. (“IDT”) and GigPeak, Inc. (“GigPeak”) are entering into an agreement pursuant to which GigPeak will become a wholly owned subsidiary of IDT (the “Merger”).  In connection with the Merger, we are pleased to offer you the following employment package with IDT.  Effective immediately at the closing of the merger, your title with IDT will be Vice President, General Manager, reporting directly to Sean Fan in our San Jose office.

For a short period of time, GigPeak will be a wholly owned subsidiary of IDT, and you will be employed by GigPeak, the IDT subsidiary.  Thereafter, you will transfer to the parent company, IDT (your “IDT Start Date”).  We currently anticipate this transfer to occur within 90 days following the close.  We will communicate with you further on the status of the harmonization schedule as that date approaches.  In the meantime, by signing this letter, you agree that as of the date of the closing of the Merger, the terms of employment for your San Jose based IDT position will be as follows:

		Salary:	
$341,250 annually; $13,125 payable biweekly.

		Status:	
Full time / Exempt

		Signing Bonus:	
You will receive a one-time cash-signing bonus of $839,173, subject to applicable taxes and withholdings, which is be paid to you on the first regular pay cycle immediately following the closing of the Merger.

		Bonus Plan:	
After the close of the merger, you will be eligible participate in IDT’s Annual Incentive Plan (AIP) pursuant to the terms of the Plan. Your participation will be at an annual target of 50% of your base earnings.

		Equity:	
After the closing of the Merger, you will participate in IDT’s 2004 Equity Plan as amended from time to time, and the Fiscal 2018 Performance Equity Plan.  Conditional upon approval from our Board of Directors, you will receive:

		(i)	
A Restricted Stock Unit (“RSU”) grant with a value equal to $600,000 on the date of grant that will vest over a four year period, subject to your continued service with an IDT entity, and subject to the terms of the IDT 2004 Equity Plan.  This award will be delivered on or about the 15th day of the month following the last day of the month in which the closing of the merger occurs.

		(ii)	
A performance-based restricted stock unit (PSU) grant with a value equal to $200,000 on the date of grant.  This PSU award is subject to all provisions of the IDT Fiscal 2018 Performance Equity Plan.  Your PSU award will be granted on or about the 15th day of the third month following the start of IDT’s Fiscal Year 2018.

Integrated Device Technology, Inc.  6024 Silver Creek Valley Rd., San Jose, CA 95138  Tel (800) 345 7015  Fax (408) 284 1442  www. IDT.com

		(iii)	
A RSU grant with a value equal to $400,000 on the date of grant and to be awarded on or about the 15th day of the month (grant date) immediately following the closing of the merger. This award will vest a year following the date of grant.

		(iv)	
On the closing date of the Merger, your vested an unvested stock options and restricted stock units will be cancelled and converted into the right to receive a cash payment as set forth in the Merger agreement.

		Benefits:	
On the date closing date of the merger, you will continue on your current health and welfare and retirement benefit plans such as medical, dental, vision, 401k and life insurance.  Beginning on your IDT Start Date, you will be eligible for IDT’s full range of U.S. employee benefits including medical, dental, vision, life, disability, and 401(k) plan participation.  You will be given credit for your years of service with GigPeak for purposes of certain IDT benefits, including vacation entitlement.  Based on your bridged service date (April 30, 2001), you will earn 4 weeks of vacation per year.  You acknowledge and agree that your accrued but unused paid vacation with GigPeak will be assumed by IDT at the closing of the Merger, and you shall be permitted to use such accrued but unused paid vacation in accordance with IDT vacation policies.  A summary of our benefits programs is attached as Exhibit A.

Employment with IDT is at the mutual consent of the employee and IDT.  Accordingly, as a U.S.-based employee, you and IDT retain the right to terminate the employment relationship at will, at any time, with or without cause.  Please understand that no representative of IDT other than the CEO has the authority to make any contrary agreement or representation, and that such agreement made by the CEO changing your at-will status must be in writing and signed by you and me.

You acknowledge and agree that this offer letter and the changes to your employment described herein do not constitute a termination without cause or a resignation for good reason or any terms of similar effect under the terms of any plan, policy or agreement with GigPeak.

This offer is contingent upon IDT’s completion of a standard background check. In order to comply with the Immigration Reform and Control Act of 1986, this offer also is contingent upon you providing proof of eligibility to work in the United States. During the first week of your employment you will be required to sign an Employee Confidentiality and Invention Agreement, a form of which is attached as Exhibit B to this offer letter.

Because of the responsibilities associated with this position, it is essential that our office receive your acceptance of this package offer no later than February 10, 2017.  This offer is contingent on the successful closing of the Merger.  Effective as of the closing of the Merger, this offer letter will become our binding agreement with respect to your employment and its terms. It will merge and  supersede in their entirety all other or prior offers, agreements and communications, whether written or oral, by you and GigPeak relating to the terms and conditions of your employment, including, without limitation, that certain Fourth Amended and Restated Employment Agreement between you and GigPeak Inc. dated November 17, 2016. Notwithstanding the foregoing, any confidential or proprietary information and inventions agreement between you and GigPeak will remain in effect, as it pertains to subject matters existing prior to the closing of the Merger.

Integrated Device Technology, Inc.  6024 Silver Creek Valley Rd., San Jose, CA 95138  Tel (800) 345 7015  Fax (408) 284 1442  www. IDT.com

Raluca, I look forward to your contributions as a key member of my staff.   Please call me directly to discuss any questions you have regarding this offer or your role at IDT.

Sincerely,

Sean Fan

Vice President and General Manager, Computing and Communications Division

	 	 
	 	
Raluca Dinu Signature of Acceptance

	 	 
	 	 
	 	
Date

Integrated Device Technology, Inc.  6024 Silver Creek Valley Rd., San Jose, CA 95138  Tel (800) 345 7015  Fax (408) 284 1442  www. IDT.com

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