Document:

exv10w01

 

Exhibit
10.01

April 10, 2006

George Harrington

Dear George,

On behalf of Symantec Corporation, I am pleased to offer you employment as Senior
Vice President, Finance Operations. In this position you will report directly to
me, and be located in our Cupertino, California office. Your starting annual
base salary will be $300,000.00 and you will be eligible for an annual
focal (performance) review. At this rate of compensation, you would be
eligible, at 60% of company and individual performance, to an additional
$180,000.000 of annual base salary, which would bring your total target annual
cash to $480,000.000.

Additionally, you will be eligible to participate in a wide variety of
employee benefits plans including Symantec’s Stock Purchase Plan, matching 401(k) savings and
investment plan, health insurance and many other benefits.
Information regarding these benefits accompanies this letter and will be reviewed
with you in detail on your first day of employment.

We will recommend to the Board of Directors that you be granted an option to purchase 100,000
shares of Symantec’s common stock under our 1996 Stock Option
Plan. The price of the stock will be the closing price of the Company’s
Common Stock on the Nasdaq National Market on the last trading day prior
to the option grant date, as reported by NASDAQ. Typically, option grants are
approved on the fourth day of the month following the start of your employment.
The option will vest over a four-year period starting from your
first day of employment, at the rate of 25% of the option at the end of
your first year of employment, and on a monthly basis thereafter.

We will also provide you with the Symantec Executive
Relocation benefit, to relocate you to Cupertino, CA. We will also do a
buyout of your home in Houston, Texas.

This letter does not constitute a contract of employment for any specific period of
time but will create an “employment at will” relationship. This means that the employment
relationship may be terminated by either party for any reason at any time. Any
statements or representation to the contrary (and, indeed any statements
contradicting any provisions of this letter) are superseded by this offer.
Participation in any of Symantec’s stock option or benefit programs is not to be regarded as
assurance of continued employment for any particular period of time. Any modification
of this form must be in writing and signed by the company CEO.

Please note that to comply with regulations adopted in the
Immigration Reform and Control Act of 1986 (IRCA), we
require that you present documentation demonstrating that you have the
authorization to work in the United States on your first
working day. If you have any questions about this requirement, which applies to U.S.
citizens and non-U.S. citizens alike, please contact Rebecca Ranninger
in the Human Resources department.

Enclosed are two documents that must be signed
and returned with your signed offer letter or on
your first day of employment: the Symantec Confidentiality and
Intellectual Property Agreement and the Symantec Code of Conduct. The
Confidentiality and Intellectual Property Agreement requires that you hold
in confidence any proprietary information received as an employee of
Symantec and to assign to us any inventions that you make while employed by Symantec.
We wish to impress upon you that you are not to bring with you any
confidential or proprietary material of any former employer or to violate any
other obligation to your former employers, and that the
Agreement that you will be asked to sign contains a representation by you
that you have not brought nor will you use any such material at
Symantec. The Code of Conduct governs the conduct of all
Symantec employees; please read the Code and then sign the
attached Acknowledgment form.

Symantec Corporation     20330 Stevens Creek Blvd., Cupertino, CA 95014     telephone (408) 253 9600     www.symantec.com

 

 

George Harrington

Page 2

The offer described in this letter will be valid for three (3) working days
from the date of this letter unless we notify you otherwise. Please
confirm your acceptance of this offer by signing this letter in the
space indicated, and forwarding one (1) signed original to Symantec in
the pre-addressed envelope provided, or fax the signed letter to Becky Ranninger, followed by mailing of a signed original letter prior to your first working day.
This offer is contingent upon successful completion
of your background checks.

George, I believe that Symantec will continue to be a
leading force in the information security and availability industry and hope that you
will accept this offer and join us in building the future. I
look forward to working with you!

Enclosures
(please return with the signed offer letter):

	 	•	 	Confidentiality and Intellectual Property Agreement
	 
	 	•	 	Code of Conductexv10w12

 

Exhibit 10.12

VERAZ NETWORKS, INC.

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

DECEMBER 19, 2006

 

 

Table Of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1 GENERAL	 	 	1	 
	 
	 	 	 	 	 	 
	     1.1
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2 REGISTRATION; RESTRICTIONS ON TRANSFER	 	 	3	 
	 
	 	 	 	 	 	 
	     2.1
	 	Restrictions on Transfer	 	 	3	 
	     2.2
	 	Demand Registration	 	 	4	 
	     2.3
	 	Piggyback Registrations	 	 	6	 
	     2.4
	 	Form S-3 Registration	 	 	7	 
	     2.5
	 	Expenses of Registration	 	 	9	 
	     2.6
	 	Obligations of the Company	 	 	9	 
	     2.7
	 	Termination of Registration Rights	 	 	11	 
	     2.8
	 	Delay of Registration; Furnishing Information	 	 	11	 
	     2.9
	 	Indemnification	 	 	11	 
	     2.10
	 	Assignment of Registration Rights	 	 	13	 
	     2.11
	 	Amendment of Registration Rights	 	 	13	 
	     2.12
	 	Limitation on Subsequent Registration Rights	 	 	14	 
	     2.13
	 	“Market Stand-Off” Agreement	 	 	14	 
	     2.14
	 	Agreement to Furnish Information	 	 	14	 
	     2.15
	 	Rule 144 Reporting	 	 	14	 
	 
	 	 	 	 	 	 
	SECTION 3 COVENANTS	 	 	15	 
	 
	 	 	 	 	 	 
	     3.1
	 	Basic Financial Information and Reporting	 	 	15	 
	     3.2
	 	Inspection Rights	 	 	17	 
	     3.3
	 	Confidentiality of Records	 	 	17	 
	     3.4
	 	Reservation of Common Stock	 	 	17	 
	     3.5
	 	Stock Vesting	 	 	17	 
	     3.6
	 	Proprietary Information and Inventions Agreement	 	 	17	 
	     3.7
	 	Consent of Directors	 	 	17	 
	     3.8
	 	Certain Covenants Relating to SBA Matters	 	 	18	 
	     3.9
	 	Qualified Small Business	 	 	19	 
	     3.10
	 	Conflict Limitation	 	 	19	 

i.

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	     3.11
	 	Repayment of Credit Facility	 	 	20	 
	     3.12
	 	Termination of Covenants	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 4 RIGHTS OF FIRST REFUSAL	 	 	20	 
	 
	 	 	 	 	 	 
	     4.1
	 	Subsequent Offerings	 	 	20	 
	     4.2
	 	Exercise of Rights	 	 	20	 
	     4.3
	 	Issuance of Equity Securities to Other Persons	 	 	21	 
	     4.4
	 	Termination and Waiver of Rights of First Refusal	 	 	21	 
	     4.5
	 	Transfer of Rights of First Refusal	 	 	21	 
	     4.6
	 	Excluded Securities	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 5 MISCELLANEOUS	 	 	22	 
	 
	 	 	 	 	 	 
	     5.1
	 	Governing Law	 	 	22	 
	     5.2
	 	Successors and Assigns	 	 	22	 
	     5.3
	 	Entire Agreement	 	 	22	 
	     5.4
	 	Severability	 	 	22	 
	     5.5
	 	Amendment and Waiver	 	 	23	 
	     5.6
	 	Delays or Omissions	 	 	24	 
	     5.7
	 	Notices	 	 	24	 
	     5.8
	 	Attorneys’ Fees	 	 	24	 
	     5.9
	 	Titles and Subtitles	 	 	24	 
	     5.10
	 	Additional Investors	 	 	24	 
	     5.11
	 	Counterparts	 	 	24	 
	     5.12
	 	Aggregation of Stock	 	 	24	 
	     5.13
	 	Effective Date Of Agreement	 	 	25	 

ii.

 

VERAZ NETWORKS, INC.

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     This Amended and Restated Investor Rights Agreement (this “Agreement”) is entered
into as of the 19th day of December, 2006, by and among Veraz Networks, Inc., a Delaware
corporation (the “Company”) and the investors listed on Exhibit A hereto, referred to hereinafter
as the “Investors” and each individually as an “Investor.”

Recitals

     Whereas, certain of the Investors and the Company are parties to that certain
Investor Rights Agreement dated October 30, 2002 (the “Prior Agreement”);

     Whereas, certain Investors are purchasing shares of the Company’s Series D Preferred
Stock (the “Series D Stock”) pursuant to that certain Series D Preferred Stock Purchase Agreement
(the “Purchase Agreement”) of even date herewith (the “Financing”);

     Whereas, certain Investors hold shares of the Company’s Series C Preferred Stock (the
“Series C Stock” and together with the Series D Stock, the “Preferred Stock”) and/or Common Stock
issued upon conversion of the Company’s formerly outstanding Series A Preferred Stock and/or the
Company’s Series B Preferred Stock (together, the “Prior Preferred Stock”);

     Whereas, the parties to the Prior Agreement desire to amend and restate the Prior
Agreement and accept the rights and covenants hereof in lieu of their rights and covenants under
the Prior Agreement; and

     Whereas, in connection with the consummation of the Financing, the Company and the
Investors have agreed to the registration rights, information rights, and other rights as set forth
below.

     Now, Therefore, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree
hereto as follows:

SECTION 1 GENERAL.

     1.1 Amendment and Restatement of Prior Agreement. The Prior Agreement is hereby amended in
its entirety and restated herein. Such amendment and restatement is effective upon the execution
of this Agreement by the Company and the holders of a majority of the Series C Stock held by the
Prior Investors outstanding as of the date of this Agreement. Upon such execution, all provisions
of, rights granted and covenants made in the Prior Agreement are hereby waived, released and
superseded in their entirety and shall have no further force or effect, including, without
limitation, all rights of first refusal and any notice period associated therewith otherwise
applicable to the transactions contemplated by the Purchase Agreement.

1.

 

     1.2 Definitions. As used in this Agreement the following terms shall have the following
respective meanings:

     (a) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (b) “Form S-3” means such form under the Securities Act as in effect on the date hereof or any
successor or similar registration form under the Securities Act subsequently adopted by the SEC
which permits inclusion or incorporation of substantial information by reference to other documents
filed by the Company with the SEC.

     (c) “Holder” means any person owning of record Registrable Securities that have not been sold
to the public or any assignee of record of such Registrable Securities in accordance with Section
2.10 hereof.

     (d) “Initial Offering” means the Company’s first firm commitment underwritten public offering
of its Common Stock registered under the Securities Act.

     (e) “Qualified Offering” means a firm commitment underwritten primary public offering by the
Company of its Common Stock registered under the Securities Act which results in the automatic
conversion of the Company’s Preferred Stock into Common Stock pursuant to the Company’s certificate
of incorporation.

     (f) “Register,” “registered,” and “registration” refer to a registration effected by preparing
and filing a registration statement in compliance with the Securities Act, and the declaration or
ordering of effectiveness of such registration statement or document.

     (g) “Registrable Securities” means (a) Common Stock of the Company issuable or issued upon
conversion of the Shares, (b) Common Stock of the Company issued upon conversion of the Prior
Preferred Stock, (c) Common Stock of the Company issued pursuant to that certain Share Exchange
Agreement by and among the Company, ECI Telecom Ltd. (“ECI”), and ECI Telecom – NGTS, Inc., dated
October 30, 2002, and (d) any Common Stock of the Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued as) a dividend or
other distribution with respect to, or in exchange for or in replacement of, such above-described
securities. Notwithstanding the foregoing, Registrable Securities shall not include any securities
sold by a person to the public either pursuant to a registration statement or Rule 144 or sold in a
private transaction in which the transferor’s rights under Section 2 of this Agreement are not
assigned.

     (h) “Registrable Securities then outstanding” shall be the number of shares of the Company’s
Common Stock that are Registrable Securities and either (a) are then issued and outstanding or (b)
are issuable pursuant to then exercisable or convertible securities.

     (i) “Registration Expenses” shall mean all expenses incurred by the Company in complying with
Sections 2.2, 2.3 and 2.4 hereof, including, without limitation, all registration
and filing fees, printing expenses, fees and disbursements of counsel for the Company,
reasonable fees and disbursements of a single special counsel for the Holders, blue sky fees and
expenses and the expense of any special audits incident to or required by any such registration

2.

 

(but excluding the compensation of regular employees of the Company which shall be paid in any
event by the Company).

     (j) “SEC” or “Commission” means the Securities and Exchange Commission.

     (k) “Securities Act” shall mean the Securities Act of 1933, as amended.

     (l) “Selling Expenses” shall mean all underwriting discounts and selling commissions
applicable to the sale.

     (m) “Shares” shall mean the Preferred Stock held by the Investors listed on Exhibit A hereto
and their permitted assigns and the Series C Stock issuable upon exercise of the Warrants.

     (n) “Special Registration Statement” shall mean (i) a registration statement relating to any
employee benefit plan or (ii) with respect to any corporate reorganization or transaction under
Rule 145 of the Securities Act, including any registration statements related to the issuance or
resale of securities issued in such a transaction or (iii) a registration related to stock issued
upon conversion of debt securities.

     (o) “Warrants” shall mean that certain warrant to purchase Series C Stock held by Comdisco.

SECTION 2 REGISTRATION; RESTRICTIONS ON TRANSFER.

     2.1 Restrictions on Transfer.

     (a) Each Holder agrees not to make any disposition of all or any portion of the Shares,
Registrable Securities or other shares of Preferred Stock of the Company unless and until:

     (i) there is then in effect a registration statement under the Securities Act covering
such proposed disposition and such disposition is made in accordance with such registration
statement; or

     (ii) (A) The transferee has agreed in writing to be bound by the terms of this
Agreement, (B) such Holder shall have notified the Company of the proposed disposition and
shall have furnished the Company with a detailed statement of the circumstances surrounding
the proposed disposition, and (C) if reasonably requested by the Company, such Holder shall
have furnished the Company with an opinion of counsel, reasonably satisfactory to the
Company, that such disposition will not require registration of such shares under the
Securities Act. It is agreed that the Company will not require opinions of counsel for
transactions made pursuant to Rule 144, except in unusual circumstances. After its Initial
Offering, the Company will not require the transferee to be bound by the terms of this
Agreement.

     (b) Notwithstanding the provisions of subsection (a) above, no such restriction shall apply to
a transfer by a Holder that is (A) a partnership transferring to its partners or former partners in
accordance with partnership interests, (B) a corporation transferring to a wholly-owned subsidiary,
a parent corporation that owns all of the capital stock of the Holder or a

3.

 

corporation affiliated
with the Holder by common control with or by such Holder, provided that such affiliated corporation
is not reasonably deemed to be a competitor of the Company, (C) a limited liability company
transferring to its members or former members in accordance with their interest in the limited
liability company, or (D) an individual transferring to the Holder’s family member or trust for the
benefit of an individual Holder; provided that in each case the transferee will agree in writing to
be subject to the terms of this Agreement to the same extent as if he were an original Holder
hereunder.

     (c) Each certificate representing Shares or Registrable Securities shall be stamped or
otherwise imprinted with legends substantially similar to the following (in addition to any legend
required under applicable state securities laws):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND
UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT
SUCH REGISTRATION IS NOT REQUIRED.

THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND
CONDITIONS OF A CERTAIN INVESTOR RIGHTS AGREEMENT BY AND BETWEEN THE
STOCKHOLDER AND THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE
OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

     (d) The Company shall be obligated to reissue promptly unlegended certificates at the request
of any Holder thereof if the Company has completed its Initial Offering and the Holder shall have
obtained an opinion of counsel (which counsel may be counsel to the Company) reasonably acceptable
to the Company to the effect that the securities proposed to be disposed of may lawfully be so
disposed of without registration, qualification and legend.

     (e) Any legend endorsed on an instrument pursuant to applicable state securities laws and the
stop-transfer instructions with respect to such securities shall be removed upon receipt by the
Company of an order of the appropriate blue sky authority authorizing such removal.

     2.2 Demand Registration.

     (a) Subject to the conditions of this Section 2.2, if the Company shall receive a written
request from the Holders of a majority of the Registrable Securities (the “Initiating Holders”)
that the Company file a registration statement under the Securities Act covering the registration
of at least a twenty five percent (25%) of the Registrable Securities then outstanding (or a lesser

4.

 

percent if the anticipated aggregate offering price, net of underwriting discounts and commissions,
would exceed $5,000,000), then the Company shall, within thirty (30) days of the receipt thereof,
give written notice of such request to all Holders, and subject to the limitations of this Section
2.2, effect, as expeditiously as reasonably possible, the registration under the Securities Act of
all Registrable Securities that all Holders request to be registered.

     (b) If the Initiating Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, they shall so advise the Company as a part of their request
made pursuant to this Section 2.2 or any request pursuant to Section 2.4 and the Company shall
include such information in the written notice referred to in Section 2.2(a) or Section 2.4(a), as
applicable. In such event, the right of any Holder to include its Registrable Securities in such
registration shall be conditioned upon such Holder’s participation in such underwriting and the
inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided
herein. All Holders proposing to distribute their securities through such underwriting shall enter
into an underwriting agreement in customary form with the underwriter or underwriters selected for
such underwriting by a majority in interest of the Initiating Holders (which underwriter or
underwriters shall be reasonably acceptable to the Company). Notwithstanding any other provision
of this Section 2.2 or Section 2.4, if the underwriter advises the Company that marketing factors
require a limitation of the number of securities to be underwritten (including Registrable
Securities) then the Company shall so advise all Holders of Registrable Securities which would
otherwise be underwritten pursuant hereto, and the number of shares that may be included in the
underwriting shall be allocated first, to the Holders of the Preferred Stock on a pro rata basis
based on the total number of shares of Preferred Stock held by such Holders; and second to the
Holders of all other Registrable Securities on a pro rata basis based on the number of Registrable
Securities held by such Holders; provided, however, that the number of shares of Registrable
Securities to be included in such underwriting and registration shall not be reduced unless all
other securities of the Company are first entirely excluded from the underwriting and registration.
Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from
the registration.

     (c) The Company shall not be required to effect a registration pursuant to this Section 2.2:

     (i) prior to the earlier of (A) the first anniversary of the date of this Agreement or
(B) one hundred eighty (180) days following the effective date of the registration statement
pertaining to the Initial Offering;

     (ii) after the Company has effected two (2) registrations pursuant to this Section 2.2,
and such registrations have been declared or ordered effective;

     (iii) during the period starting with the date of filing of, and ending on the date one
hundred eighty (180) days following the effective date of the registration statement
pertaining to an underwritten public offering, other than pursuant to a Special Registration
Statement; provided that the Company makes reasonable good faith efforts to cause such
registration statement to become effective;

5.

 

     (iv) if within thirty (30) days of receipt of a written request from Initiating Holders
pursuant to Section 2.2(a), the Company gives notice to the Holders of the Company’s
intention to file a registration statement for a public offering, other than pursuant to a
Special Registration Statement, within ninety (90) days;

     (v) if the Company shall furnish to Holders requesting a registration statement
pursuant to this Section 2.2, a certificate signed by the Chairman of the Board of Directors
stating that in the good faith judgment of the Board of Directors of the Company, it would
be seriously detrimental to the Company and its stockholders for such registration statement
to be effected at such time, in which event the Company shall have the right to defer such
filing for a period of not more than one hundred twenty (120) days after receipt of the
request of the Initiating Holders; provided that such right to delay a request shall be
exercised by the Company not more than once in any twelve (12) month period;

     (vi) if the Initiating Holders propose to dispose of shares of Registrable Securities
that may be immediately registered on Form S-3 pursuant to a request made pursuant to
Section 2.4 below, in which case the Company shall comply with Section 2.4 upon such
request; or

     (vii) in any particular jurisdiction in which the Company would be required to qualify
to do business or to execute a general consent to service of process in effecting such
registration, qualification or compliance.

     2.3 Piggyback Registrations. The Company shall notify all Holders of Registrable Securities
in writing at least fifteen (15) days prior to the filing of any registration statement under the
Securities Act for purposes of a public offering of securities of the Company (including, but not
limited to, registration statements relating to secondary offerings of securities of the Company,
but excluding Special Registration Statements) and will afford each such Holder an opportunity to
include in such registration statement all or part of such Registrable Securities held by such
Holder. Each Holder desiring to include in any such registration statement all or any part of the
Registrable Securities held by it shall, within fifteen (15) days after the above-described notice
from the Company, so notify the Company in writing. Such notice shall state the intended method of
disposition of the Registrable Securities by such Holder. If a Holder decides not to include all
of its Registrable Securities in any registration statement thereafter filed by the Company, such
Holder shall nevertheless continue to have the right to include any Registrable Securities in any
subsequent registration statement or registration statements as may be filed by the Company with
respect to offerings of its securities, all upon the terms and conditions set forth herein.

     (a) Underwriting. If the registration statement under which the Company gives notice under
this Section 2.3 is for an underwritten offering, the Company shall so advise the Holders of
Registrable Securities. In such event, the right of any such Holder to be included in a
registration pursuant to this Section 2.3 shall be conditioned upon such Holder’s participation in
such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to
the extent provided herein. All Holders proposing to distribute their Registrable Securities
through such underwriting shall enter into an underwriting agreement in customary form with the

6.

 

underwriter or underwriters selected for such underwriting by the Company. Notwithstanding any
other provision of this Agreement, if the underwriter determines in good faith that marketing
factors require a limitation of the number of shares to be underwritten, the number of shares that
may be included in the underwriting shall be allocated, first, to the Company; second, to the
Holders of Preferred Stock on a pro rata basis based on the total number of shares of Preferred
Stock held by such Holders; third, to the Holders of all other Registrable Securities on a pro rata
basis based on the number of Registrable Securities held by such Holders; and fourth, to any
stockholder of the Company (other than a Holder) on a pro rata basis; provided, however, that no
such reduction shall reduce the amount of securities of the selling Holders included in the
registration below twenty-five percent (25%) of the total amount of securities included in such
registration, unless such offering is the Initial Offering and such registration does not include
shares of any other selling stockholders, in which event any or all of the Registrable Securities
of the Holders may be excluded in accordance with the immediately preceding clause. In no event
will shares of any other selling stockholder be included in such registration that would reduce the
number of shares which may be included by Holders without the written consent of Holders of not
less than a majority of the Registrable Securities proposed to be sold in the offering. If any
Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw
therefrom by written notice to the Company and the underwriter, delivered at least ten (10)
business days prior to the effective date of the registration statement. Any Registrable
Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the
registration. For any Holder which is a partnership or corporation, the partners, retired partners
and stockholders of such Holder, or the estates and family members of any such partners and retired
partners and any trusts for the benefit of any of the foregoing person shall be deemed to be a
single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the
aggregate amount of shares carrying registration rights owned by all entities and individuals
included in such “Holder,” as defined in this sentence.

     (b) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 2.3 prior to the effectiveness of such
registration whether or not any Holder has elected to include securities in such registration. The
Registration Expenses of such withdrawn registration shall be borne by the Company in accordance
with Section 2.5 hereof.

     2.4 Form S-3 Registration. In case the Company shall receive from any Holder or Holders of
Registrable Securities a written request or requests that the Company effect a registration on Form
S-3 (or any successor to Form S-3) or any similar short-form registration statement and any related
qualification or compliance with respect to all or a part of the Registrable Securities owned by
such Holder or Holders, the Company will:

     (a) promptly give written notice of the proposed registration, and any related qualification
or compliance, to all other Holders of Registrable Securities; and

     (b) as soon as practicable, effect such registration and all such qualifications and
compliances as may be so requested and as would permit or facilitate the sale and distribution of
all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any other Holder or
Holders joining in such request as are specified in a written request given within fifteen (15)
days

7.

 

after receipt of such written notice from the Company; provided, however, that the Company
shall not be obligated to effect any such registration, qualification or compliance pursuant to
this Section 2.4:

     (i) if Form S-3 is not available for such offering by the Holders, or

     (ii) if the Holders, together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at an aggregate price to the public of less than five hundred
thousand dollars ($500,000), or

     (iii) if within thirty (30) days of receipt of a written request from any Holder or
Holders pursuant to this Section 2.4, the Company gives notice to such Holder or Holders of
the Company’s intention to make a public offering within ninety (90) days, other than
pursuant to a Special Registration Statement;

     (iv) if the Company shall furnish to the Holders a certificate signed by the Chairman
of the Board of Directors of the Company stating that in the good faith judgment of the
Board of Directors of the Company, it would be seriously detrimental to the Company and its
stockholders for such Form S-3 registration to be effected at such time, in which event the
Company shall have the right to defer the filing of the Form S-3 registration statement for
a period of not more than one hundred twenty (120) days after receipt of the request of the
Holder or Holders under this Section 2.4; provided, that such right to delay a request shall
be exercised by the Company not more than once in any twelve (12) month period, or

     (v) if the Company has, within the twelve (12) month period preceding the date of such
request, already effected one (1) registration on Form S-3 for the Holders pursuant to this
Section 2.4,

     (vi) if the Company has already effected four (4) registrations on Form S-3 for the
Holders pursuant to this Section 2.4, or

     (vii) in any particular jurisdiction in which the Company would be required to qualify
to do business or to execute a general consent to service of process in effecting such
registration, qualification or compliance.

     (c) Subject to the foregoing, the Company shall file a Form S-3 registration statement
covering the Registrable Securities and other securities so requested to be registered as soon as
practicable after receipt of the requests of the Holders. Registrations effected pursuant to this
Section 2.4 shall not be counted as demands for registration or registrations effected
pursuant to Section 2.2, respectively.

     2.5 Expenses of Registration. Except as specifically provided herein, all Registration
Expenses incurred in connection with any registration, qualification or compliance pursuant to
Section 2.2 or any registration under Section 2.3 or Section 2.4 herein shall be borne by the
Company. All Selling Expenses incurred in connection with any registrations hereunder, shall be
borne by the holders of the securities so registered pro rata on the basis of the number of

8.

 

shares so registered. The Company shall not, however, be required to pay for expenses of any registration
proceeding begun pursuant to Section 2.2 or 2.4, the request of which has been subsequently
withdrawn by the Initiating Holders unless (a) the withdrawal is based upon material adverse
information concerning the Company of which the Initiating Holders were not aware at the time of
such request or (b) the Holders of a majority of Registrable Securities agree to forfeit their
right to one requested registration pursuant to Section 2.2 or Section 2.4, as applicable, in which
event such right shall be forfeited by all Holders). If the Holders are required to pay the
Registration Expenses, such expenses shall be borne by the holders of securities (including
Registrable Securities) requesting such registration in proportion to the number of shares for
which registration was requested. If the Company is required to pay the Registration Expenses of a
withdrawn offering pursuant to clause (a) above, then the Holders shall not forfeit their rights
pursuant to Section 2.2 or Section 2.4 to a demand registration.

     2.6 Obligations of the Company. Whenever required to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as reasonably possible:

     (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use all reasonable efforts to cause such registration statement to become effective,
and, upon the request of the Holders of a majority of the Registrable Securities registered
thereunder, keep such registration statement effective for up to one hundred eighty (180) days or,
if earlier, until the Holder or Holders have completed the distribution related thereto; provided,
however, that at any time, upon written notice to the participating Holders and for a period not to
exceed sixty (60) days thereafter (the “Suspension Period”), the Company may delay the filing or
effectiveness of any registration statement or suspend the use or effectiveness of any registration
statement (and the Initiating Holders hereby agree not to offer or sell any Registrable Securities
pursuant to such registration statement during the Suspension Period) if the Company reasonably
believes that the Company may, in the absence of such delay or suspension hereunder, be required
under state or federal securities laws to disclose any corporate development the disclosure of
which could reasonably be expected to have a material adverse effect upon the Company, its
stockholders, a potentially significant transaction or event involving the Company, or any
negotiations, discussions, or proposals directly relating thereto. No more than two (2) such
Suspension Periods shall occur in any twelve (12) month period. In the event that the Company
shall exercise its right to delay or suspend the filing or effectiveness of a registration
hereunder, the applicable time period during which the registration statement is to remain
effective shall be extended by a period of time equal to the duration of the Suspension
Period. If so directed by the Company, the Initiating Holders shall use their best efforts
to deliver to the Company (at the Company’s expense) all copies, other than permanent file copies
then in such Initiating Holders’ possession, of the prospectus relating to such Registrable
Securities current at the time of receipt of such notice.

     (b) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such registration statement for the period set forth in subsection (a)
above.

9.

 

     (c) Furnish to the Holders such number of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such other documents as
they may reasonably request in order to facilitate the disposition of Registrable Securities owned
by them.

     (d) Use its reasonable efforts to register and qualify the securities covered by such
registration statement under such other securities or Blue Sky laws of such jurisdictions as shall
be reasonably requested by the Holders; provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions.

     (e) In the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of
such offering. Each Holder participating in such underwriting shall also enter into and perform
its obligations under such an agreement.

     (f) Notify each Holder of Registrable Securities covered by 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 as a result of which the prospectus included 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
the light of the circumstances then existing. The Company will use reasonable efforts to promptly
amend or supplement such prospectus in order to cause such prospectus not to include any 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 not misleading in the light of the circumstances then
existing.

     (g) Use its reasonable efforts to furnish, on the date that such Registrable Securities are
delivered to the underwriters for sale, if such securities are being sold through underwriters, (i)
an opinion, dated as of such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and (ii) a letter, dated as of such date,
from the independent certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.

10.

 

     2.7 Termination of Registration Rights. A Holder’s registration rights shall expire if (a)
the Company has completed its Initial Offering and is subject to the provisions of the Exchange
Act, (b) such Holder (together with its affiliates) as reflected on the Company’s list of
stockholders holds less than 1% of the Company’s outstanding Common Stock (treating all shares of
convertible Preferred Stock on an as converted basis) and (c) all Registrable Securities held by
and issuable to such Holder (and its affiliates) may be sold pursuant to Rule 144 during any ninety
(90) day period.

     2.8 Delay of Registration; Furnishing Information.

     (a) No Holder shall have any right to obtain or seek an injunction restraining or otherwise
delaying any such registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 2.

     (b) It shall be a condition precedent to the obligations of the Company to take any action
pursuant to Section 2.2, 2.3 or 2.4 that the selling Holders shall furnish to the Company such
information regarding themselves, the Registrable Securities held by them and the intended method
of disposition of such securities as shall be required to effect the registration of their
Registrable Securities.

     2.9 Indemnification. In the event any Registrable Securities are included in a registration
statement under Sections 2.2, 2.3 or 2.4:

     (a) Subject to Section 2.9(d), the Company will indemnify and hold harmless each Holder, the
partners, officers and directors of each Holder, any underwriter (as defined in the Securities Act)
for such Holder and each person, if any, who controls such Holder or underwriter within the meaning
of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities
(joint or several) to which they may become subject under the Securities Act, the Exchange Act or
other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements, omissions or
violations (collectively a “Violation”) by the Company: (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement or incorporated by reference
therein, including any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) 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, or (iii) any violation or alleged violation by the Company of the Securities Act, the
Exchange Act, any state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law in connection with the offering covered by such
registration statement; and the Company will reimburse each such Holder, partner, officer,
director, underwriter or 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 indemnity agreement contained in this Section 2.9(a) shall not
apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the consent of the
Company, which consent shall not be unreasonably withheld, nor shall the Company be liable in any
such case for any such loss, claim, damage, liability or action to the extent that it arises out of
or is based upon a Violation which occurs in reliance upon and in conformity with written

11.

 

information furnished expressly for use in connection with such registration by such Holder,
partner, officer, director, underwriter or controlling person of such Holder.

     (b) Subject to Section 2.9(d), each Holder will, if Registrable Securities held by such Holder
are included in the securities as to which such registration qualifications or compliance is being
effected, indemnify and hold harmless the Company, each of its directors, its officers and each
person, if any, who controls the Company within the meaning of the Securities Act, any underwriter
and any other Holder selling securities under such registration statement or any of such other
Holder’s partners, directors or officers or any person who controls such Holder, against any
losses, claims, damages or liabilities (joint or several) to which the Company or any such
director, officer, controlling person, underwriter or other such Holder, or partner, director,
officer or controlling person of such other Holder may become subject under the Securities Act, the
Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon any of the following statements: (i)
any untrue statement or alleged untrue statement of a material fact contained in such registration
statement or incorporated reference therein, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) 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, or (iii) any violation or alleged violation by the Company of
the Securities Act (collectively, a “Holder Violation”), in each case to the extent (and only to
the extent) that such Holder Violation occurs in reliance upon and in conformity with written
information furnished by such Holder under an instrument duly executed by such Holder and stated to
be specifically for use in connection with such registration; and each such Holder will reimburse
any legal or other expenses reasonably incurred by the Company or any such director, officer,
controlling person, underwriter or other Holder, or partner, officer, director or controlling
person of such other Holder in connection with investigating or defending any such loss, claim,
damage, liability or action if it is judicially determined that there was such a Holder Violation;
provided, however, that the indemnity agreement contained in this Section 2.9(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement
is effected without the consent of the Holder, which consent shall not be unreasonably withheld;
provided further, that in no event shall any indemnity under this Section 2.9 exceed the net
proceeds from the offering received by such Holder.

     (c) Promptly after receipt by an indemnified party under this Section 2.9 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Section 2.9,
deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires,
jointly with any other indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing interests
between such indemnified party and any other party represented by such counsel in such proceeding.
The failure to deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if materially prejudicial to its ability to defend such action,

12.

 

shall relieve such indemnifying party of any liability to the indemnified party under this Section
2.9, but the omission so to deliver written notice to the indemnifying party will not relieve it of
any liability that it may have to any indemnified party otherwise than under this Section 2.9.

     (d) If the indemnification provided for in this Section 2.9 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages
or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified
party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or liability in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other in connection with the Violation(s) that resulted in
such loss, claim, damage or liability, as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and of the indemnified party shall be determined by a
court of law by reference to, among other things, whether the untrue or alleged untrue statement of
a material fact or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission; provided, that in
no event shall any contribution by a Holder hereunder exceed the net proceeds from the offering
received by such Holder.

     (e) The obligations of the Company and Holders under this Section 2.9 shall survive completion
of any offering of Registrable Securities in a registration statement and the termination of this
Agreement. No indemnifying party, in the defense of any such claim or litigation, shall, except
with the consent of each indemnified party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect to such claim or
litigation.

     2.10 Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Section 2 may be assigned by a Holder to a transferee or
assignee of Registrable Securities that (a) is a subsidiary, parent, general partner, limited
partner, retired partner, member or retired member, of a Holder, (b) is a Holder’s family member or
trust for the benefit of an individual Holder, or (c) acquires at least one million (1,000,000)
shares of Registrable Securities (as adjusted for stock splits and combinations); or (d) is an
entity affiliated by common control (or other related entity) with such Holder; provided, however,
(i) the transferor shall, within ten (10) days after such transfer, furnish to the Company written
notice of the name and address of such transferee or assignee and the securities with respect to
which such registration rights are being assigned and (ii) such transferee shall agree to be
subject to all restrictions set forth in this Agreement.

     2.11 Amendment of Registration Rights. Any provision of this Section 2 may be amended and the
observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the Holders of at
least a majority of the Registrable Securities then outstanding. Any amendment or waiver effected
in accordance with this Section 2.11 shall be binding upon each Holder and the

13.

 

Company. By
acceptance of any benefits under this Section 2, Holders of Registrable Securities hereby agree to
be bound by the provisions hereunder.

     2.12 Limitation on Subsequent Registration Rights. Other than as provided in Section 5.10,
after the date of this Agreement, the Company shall not, without the prior written consent of the
Holders of at least a majority of the Registrable Securities then outstanding, enter into any
agreement with any holder or prospective holder of any securities of the Company that would grant
such holder registration rights on a parity with or senior to those granted to the Holders
hereunder, other than the right to a Special Registration Statement.

     2.13 “Market Stand-Off” Agreement. Each Holder hereby agrees that such Holder shall not sell,
transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging
or similar transaction with the same economic effect as a sale, any Common Stock (or other
securities) of the Company held by such Holder (other than those included in the registration) for
a period specified by the representative of the underwriters of Common Stock (or other securities)
of the Company not to exceed one hundred eighty (180) days following the effective date of a
registration statement of the Company filed under the Securities Act; provided that:

     (i) such agreement shall apply only to the Company’s Initial Offering; and

     (ii) all officers and directors of the Company and holders of at least one percent (1%)
of the Company’s voting securities enter into similar agreements.

     2.14 Agreement to Furnish Information. Each Holder agrees to execute and deliver such other
agreements as may be reasonably requested by the Company or the underwriter that are consistent
with the Holder’s obligations under Section 2.13 or that are necessary to give further effect
thereto. In addition, if requested by the Company or the representative of the underwriters of
Common Stock (or other securities) of the Company, each Holder shall provide, within ten (10) days
of such request, such information as may be reasonably required by the Company or such
representative in connection with the completion of any public offering of the Company’s securities
pursuant to a registration statement filed under the Securities Act. The obligations described in
Section 2.13 and this Section 2.14 shall not apply to a Special Registration Statement. The
Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other
securities) subject to the foregoing restriction until the end of said one hundred eighty (180) day
period. Each Holder agrees that any transferee of any shares of Registrable Securities shall be
bound by Sections 2.13 and 2.14. The underwriters of the Company’s stock are intended third party
beneficiaries of Sections 2.13 and 2.14 and shall have the right, power and authority to enforce
the provisions hereof as though they were a party hereto.

     2.15 Rule 144 Reporting. With a view to making available to the Holders the benefits of
certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to
the public without registration, the Company agrees to use its best efforts to:

     (a) Make and keep public information available, as those terms are understood and defined in
SEC Rule 144 or any similar or analogous rule promulgated under the Securities Act,

14.

 

at all times
after the effective date of the first registration filed by the Company for an offering of its
securities to the general public;

     (b) File with the SEC, in a timely manner, all reports and other documents required of the
Company under the Exchange Act; and

     (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon
request: a written statement by the Company as to its compliance with the reporting requirements
of said Rule 144 of the Securities Act, and of the Exchange Act (at any time after it has become
subject to such reporting requirements); a copy of the most recent annual or quarterly report of
the Company filed with the Commission; and such other reports and documents as a Holder may
reasonably request in connection with availing itself of any rule or regulation of the SEC allowing
it to sell any such securities without registration.

SECTION 3 COVENANTS.

     3.1 Basic Financial Information and Reporting.

     (a) The Company will maintain true books and records of account in which full and correct
entries will be made of all its business transactions pursuant to a system of accounting
established and administered in accordance with generally accepted accounting principles
consistently applied (except as noted therein) and will set aside on its books all such proper
accruals and reserves as shall be required under generally accepted accounting principles
consistently applied.

     (b) As soon as practicable after the end of each fiscal year of the Company, and in any event
within one hundred twenty (120) days thereafter, the Company will furnish (i) each Investor holding
(with its affiliates) at least one million (1,000,000) shares of Registrable Securities (as
adjusted for stock splits and combinations) (a “Major Investor”) and (ii) at the written request of
each Investor holding (with its affiliates) at least one hundred thousand (100,000) shares of
Registrable Securities (as adjusted for stock splits and combinations), a balance sheet of the
Company, as at the end of fiscal year, and a statement of income and a statement of cash flows of
the Company, for such year, all prepared in accordance with generally accepted accounting
principles consistently applied (except as noted therein) and setting forth in
each case in comparative form the figures for the previous fiscal year, all in reasonable
detail. Such financial statements shall be accompanied by a report and opinion thereon by
independent public accountants of national standing selected by the Company’s Board of Directors.

     (c) The Company will furnish each Major Investor, as soon as practicable after the end of the
first, second and third quarterly accounting periods in each fiscal year of the Company, and in any
event within forty-five (45) days thereafter, a balance sheet of the Company as of the end of each
such quarterly period, and a statement of income and a statement of cash flows of the Company for
such period and for the current fiscal year to date, prepared in accordance with generally accepted
accounting principles consistently applied (except as noted therein) or; with the exception that no
notes need be attached to such statements and year-end audit adjustments may not have been made.

15.

 

     (d) The Company will furnish each Major Investor: (i) at least thirty (30) days prior to the
beginning of each fiscal year an annual budget and operating plans for such fiscal year (and as
soon as available, any subsequent written revisions thereto); and (ii) as soon as practicable after
the end of each month, and in any event within twenty (20) days thereafter, a balance sheet of the
Company as of the end of each such month, and a statement of income and a statement of cash flows
of the Company for such month and for the current fiscal year to date, including a comparison to
plan figures for such period, prepared in accordance with generally accepted accounting principles
consistently applied (except as noted thereon), with the exception that no notes need be attached
to such statements and year-end audit adjustments may not have been made.

16.

 

     3.2 Inspection Rights. Each Major Investor shall have the right to visit and inspect any of
the properties of the Company or any of its subsidiaries, and to discuss the affairs, finances and
accounts of the Company or any of its subsidiaries with its officers, and to review such
information as is reasonably requested all at such reasonable times and as often as may be
reasonably requested; provided, however, that the Company shall not be obligated under this Section
3.2 with respect to a competitor of the Company or with respect to information which the Board of
Directors determines in good faith is confidential or subject to attorney-client privilege and
should not, therefore, be disclosed.

     3.3 Confidentiality of Records. Each Investor agrees to use the same degree of care as such
Investor uses to protect its own confidential information to keep confidential any information
furnished to it that the Company identifies as being confidential or proprietary (so long as such
information is not in the public domain), except that such Investor may disclose such proprietary
or confidential information (i) to any partner, subsidiary, affiliate or parent of such Investor
for the purpose of evaluating its investment in the Company as long as such partner, subsidiary,
affiliate or parent is advised of the confidentiality provisions of this Section 3.4 and is
reasonably deemed by such Investor not to be a competitor of the Company; (ii) at such time as it
enters the public domain, not through the fault of such Investor; (iii) that is communicated to
such Investor free of any obligation of confidentiality; or (iv) that is developed by Investor or its agents
independently of and without reference to any confidential information communicated by the Company.

     3.4 Reservation of Common Stock. The Company will at all times reserve and keep available,
solely for issuance and delivery upon the conversion of the Preferred Stock, all Common Stock
issuable from time to time upon such conversion.

     3.5 Stock Vesting. Unless otherwise approved by the Board of Directors, all stock options and
other stock equivalents issued after the date of this Agreement to employees, directors,
consultants and other service providers shall be subject to vesting as follows: (a) twenty-five
percent (25%) of such stock shall vest at the end of the first year following the earlier of the
date of issuance or such person’s services commencement date with the company, and (b) seventy-five
percent (75%) of such stock shall vest monthly over the remaining three (3) years. With respect to
any shares of stock purchased by any such person, the Company’s repurchase option shall provide
that upon such person’s termination of employment or service with the Company, with or without
cause, the Company or its assignee shall have the option to purchase at cost any unvested shares of
stock held by such person.

     3.6 Proprietary Information and Inventions Agreement. The Company shall require all employees
and consultants to execute and deliver a Proprietary Information and Inventions Agreement
substantially in the Company’s standard form.

     3.7 Consent of Directors. The consent of a majority of the Board of Directors, shall be
required to approve any of the following actions of the Company:

     (i) loans, leases, contracts or other transactions with any director, officer or key
employee of the Company, or any member of any such person’s family, including the

17.

 

parents,
spouse, children and other relatives of any such person; except advances to employees for
reasonable travel expenses;

     (ii) creation of any mortgage, pledge or other security interest over all or
substantially all of the assets of the Company or any of its subsidiaries;

     (iii) engagement and disengagement of the independent public accountants of the
Company;

     (iv) appointment and removal of the Chief Executive Officer, Chief Financial Officer,
Chief Technical Officer, President, Vice President of Sales, Vice President of Business
Development and any other executive officer serving in such capacity whether
or not holding such title or serving at a comparable level, and amendment of any terms
of their employment;

     (v) compensation of any of its employees, including officers, in an amount greater than
$75,000;

     (vi) creation or amendment of any signatory rights;

     (vii) provision of any guarantee by the Company or any subsidiary in an amount in
excess of $25,000;

     (viii) adoption of an annual budget or an operating plan;

     (ix) any sale, or grant of an exclusive license or license outside the ordinary course
of business to, any or all of the Company’s intellectual property;

     (x) any capital expenditure or commitment in an amount greater than fifty thousand
dollars ($50,000) in a single transaction or one hundred thousand dollars ($100,000) in a
series of related transactions, unless specifically provided for in the approved annual
budget;

     (xi) increasing the number of shares reserved for grant under the Company’s equity
incentive plans;

     (xii) making or modifying any election regarding the characterization of the Company
for United States tax purposes;

     (xiii) incurring indebtedness in excess of $500,000, other than trade debt incurred in
the ordinary course of business, or

     (xiv) entering into any strategic alliance with a corporation or other entity.

     3.8 Certain Covenants Relating to SBA Matters

     (a) Use of Proceeds. The proceeds from the issuance and sale of the Series D Stock pursuant
to the Purchase Agreement (the “Proceeds”) shall be used by the Company for its

18.

 

growth, modernization or expansion. The Company shall provide each Investor which is a licensed Small
Business Investment Company (an “SBIC Investor”) and the Small Business Administration (the “SBA”)
reasonable access to the Company’s books and records for the purpose of confirming the use of
Proceeds.

     (b) Business Activity. For a period of one year following the Closing under the Purchase
Agreement the Company shall not change the nature of its business activity if such change would
render the Company ineligible as provided in 13 C.F.R. Section 107.720.

     (c) Compliance. So long as any SBIC Investor holds any securities of the Company, the Company
will at all times comply with the non-discrimination requirements of 13 C.F.R. Parts 112, 113 and
117.

     (d) Information for SBIC Investor. Within forty-five (45) days after the end of each fiscal
year and at such other times as an SBIC Investor may reasonably request, the Company shall deliver
to such SBIC Investor a written assessment, in form and substance satisfactory to such SBIC
Investor, of the economic impact of such SBIC Investor’s financing specifying the full-time
equivalent jobs created or retained in connection with such investment, and the impact of the
financing on the Company’s business in terms of profits and on taxes paid by the Company and its
employees. Upon request, the Company agrees to promptly provide each SBIC Investor with sufficient
information to permit such Investor to comply with their obligations under the Small Business
Investment Act of 1958, as amended, and the regulations promulgated thereunder and related thereto;
provided, however, each SBIC Investor agrees that it will protect any information which the Company
labels as confidential to the extent permitted by law. Any submission of any financial information
under this Section shall include a certificate of the Company’s president, chief executive officer,
treasurer or chief financial officer.

     (e) Number of Holders of Voting Securities. So long as any SBIC Investor holds any securities
purchased pursuant to the Purchase Agreement or issued by the Company with respect thereto, the
Company shall notify each SBIC Investor (i) at least fifteen (15) days prior to taking any action
after which the number of record holders of the Company’s voting securities would be increased from
fewer than fifty (50) to fifty (50) or more, and (ii) of any other action or occurrence after which
the number of record holders of the Company’s voting securities was increased (or would increase)
from fewer than fifty (50) to fifty (50) or more, as soon as practicable after the Company becomes
aware that such other action or occurrence has occurred or is proposed to occur.

     3.9 Qualified Small Business. The Company will use reasonable efforts to comply with the
reporting and recordkeeping requirements of Section 1202 of the Internal Revenue Code of 1986, as
amended (the “Code”), any regulations promulgated thereunder and any similar state laws and
regulations, and agrees not to repurchase any stock of the Company if such repurchase would cause
the Shares not to so qualify as “Qualified Small Business Stock,” so long as the Company’s Board of
Directors determines that it is in the best interests of and not unduly burdensome to the Company
to comply with the provisions of Section 1202 of the Code.

     3.10 Conflict Limitation. Notwithstanding any other term contained herein, in the event the
Company proposes, negotiates or enters into any transaction with ECI, the directors of

19.

 

the Company
designated by ECI shall recuse themselves from any discussion or decision of the Board of Directors
with respect to such transaction. The foregoing provision shall also apply if a direct competitor
of ECI proposes an acquisition of the Company and the competitor so requests, it being understood
that this shall not affect ECI’s right as a stockholder.

     3.11 Repayment of Credit Facility. The Company shall use its best efforts to satisfy the
repayment in full of its debt obligation pursuant to its credit facility with Bank Leumi-le Israel
B.M. as soon as practicable following the date of this Agreement.

     3.12 Termination of Covenants. All covenants contained in Section 3 of this Agreement shall
expire and terminate as to each Investor upon the earlier of (i) the effective date of the
registration statement pertaining to a Qualified Offering or (ii) upon (a) the sale, lease or other
disposition of all or substantially all of the assets of the Company or (b) an acquisition of the
Company by another corporation or entity by consolidation, merger or other reorganization in which
the holders of the Company’s outstanding voting stock immediately prior to such transaction own,
immediately after such transaction, securities representing less than fifty percent (50%) of the
voting power of the corporation or other entity surviving such transaction, provided that this
Section 3.12(ii)(b) shall not apply to a merger effected exclusively for the purpose of changing
the domicile of the Company (a “Change in Control”).

SECTION 4 RIGHTS OF FIRST REFUSAL.

     4.1 Subsequent Offerings. Each Major Investor shall have a right of first refusal to purchase
its pro rata share of all Equity Securities, as defined below, that the Company may, from time to
time, propose to sell and issue after the date of this Agreement, other than the Equity Securities
excluded by Section 4.6 hereof. Each Investor’s pro rata share is equal to the ratio of (a) the
number of shares of the Company’s Common Stock (including all shares of Common Stock issuable or
issued upon conversion of the Shares) which such Investor is deemed to be a holder immediately
prior to the issuance of such Equity Securities to (b) the total number of shares of the Company’s
outstanding Common Stock (including all shares of Common Stock issued or issuable upon conversion
of the Shares or upon the exercise of any outstanding warrants or options) immediately prior to the
issuance of the Equity Securities. The term “Equity Securities” shall mean (i) any Common Stock,
Preferred Stock or other security of the Company, (ii) any security convertible into or exercisable
or exchangeable for, with or without consideration, any Common Stock, Preferred Stock or other
security (including any option to purchase such a convertible security), (iii) any security
carrying any warrant or right to subscribe to or purchase any Common Stock, Preferred Stock or
other security or (iv) any such warrant or right.

     4.2 Exercise of Rights. If the Company proposes to issue any Equity Securities, it shall give
each Major Investor written notice of its intention, describing the Equity Securities, the price
and the terms and conditions upon which the Company proposes to issue the same. Each Major
Investor shall have fifteen (15) business days from the giving of such notice to agree to purchase
its pro rata share of the Equity Securities for the price and upon the terms and conditions
specified in the notice by giving written notice to the Company and stating therein the quantity of
Equity Securities to be purchased. Notwithstanding the foregoing, the Company shall not be
required to offer or sell such Equity Securities to any Major Investor who would

20.

 

cause the Company to be
in violation of applicable federal securities laws by virtue of such offer or sale.

     4.3 Issuance of Equity Securities to Other Persons. If not all of the Major Investors elect
to purchase their pro rata share of the Equity Securities, then the Company shall promptly notify
in writing the Major Investors who do so elect and shall offer such Major Investors the right to
acquire such unsubscribed shares. The Major Investors shall have five (5) business days after
receipt of such notice to notify the Company of its election to purchase all or a portion thereof
of the unsubscribed shares. If the Major Investors fail to exercise in full the rights of first
refusal, the Company shall have ninety (90) days thereafter to sell the Equity Securities in
respect of which the Major Investor’s rights were not exercised, at a price and upon general terms
and conditions not more favorable to the purchasers thereof than specified in the Company’s notice
to the Major Investors pursuant to Section 4.2 hereof. If the Company has not sold such Equity
Securities within ninety (90) days of the notice provided pursuant to Section 4.2, the Company
shall not thereafter issue or sell any Equity Securities, without first offering such securities to
the Major Investors in the manner provided above.

     4.4 Termination and Waiver of Rights of First Refusal. The rights of first refusal
established by this Section 4 shall not apply to, and shall terminate upon the earlier of (i) the
effective date of the registration statement pertaining to a Qualified Offering or (ii) a Change in
Control. The rights of first refusal established by this Section 4 may be amended, or any provision
waived with the written consent of Major Investors holding a majority of the Registrable Securities
held by all Major Investors, or as permitted by Section 5.6.

     4.5 Transfer of Rights of First Refusal. The rights of first refusal of each Major Investor
under this Section 4 may be transferred to the same parties, subject to the same restrictions as
any transfer of registration rights pursuant to Section 2.10.

     4.6 Excluded Securities. The rights of first refusal established by this Section 4 shall have
no application to any of the following Equity Securities:

     (a) shares of common stock and/or options, warrants or other Common Stock purchase rights and
the Common Stock issued pursuant to such options, warrants or other rights (as adjusted for any
stock dividends, combinations, splits, recapitalizations and the like) after the date hereof to
employees, officers or directors of, or consultants or advisors to, the Company or any subsidiary
pursuant to stock purchase or stock option plans or other arrangements that are approved by the
Board of Directors;

     (b) stock issued or issuable pursuant to any rights or agreements, options, warrants or
convertible securities outstanding as of the date of this Agreement; and stock issued pursuant to
any such rights or agreements granted after the date of this Agreement, so long as the rights
of first refusal established by this Section 4 were complied with respect to the initial sale or
grant by the Company of such rights or agreements;

     (c) any Equity Securities issued for consideration other than cash pursuant to a merger,
consolidation, strategic alliance, acquisition or similar business combination approved by the
Board of Directors;

21.

 

     (d) shares of Common Stock issued in connection with any stock split, stock dividend or
recapitalization by the Company;

     (e) shares of Common Stock issued upon conversion of shares of the Company’s Preferred Stock;

     (f) any Equity Securities issued pursuant to any equipment loan or leasing arrangement, real
property leasing arrangement, or debt financing from a bank or similar financial or lending
institution approved by the Board of Directors;

     (g) any Equity Securities that are issued by the Company pursuant to a registration statement
filed under the Securities Act;

     (h) any Equity Securities issued in connection with strategic transactions involving the
Company and other entities, including (i) joint ventures, manufacturing, marketing or distribution
arrangements or (ii) technology transfer or development arrangements; provided that the issuance of
shares therein has been approved by the Company’s Board of Directors; and

     (i) any Equity Securities issued by the Company pursuant to the terms of the Purchase
Agreement.

SECTION 5 MISCELLANEOUS.

     5.1 Governing Law. This Agreement shall be governed by and construed under the laws of the
State of California as applied to agreements among California residents entered into and to be
performed entirely within California.

     5.2 Successors and Assigns. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs,
executors, and administrators of the parties hereto and shall inure to the benefit of and be
enforceable by each person who shall be a holder of Registrable Securities from time to time;
provided, however, that prior to the receipt by the Company of adequate written notice of the
transfer of any Registrable Securities specifying the full name and address of the transferee, the
Company may deem and treat the person listed as the holder of such shares in its records as the
absolute owner and holder of such shares for all purposes, including the payment of dividends or
any redemption price.

     5.3 Entire Agreement. This Agreement, the Exhibits and Schedules hereto, the Purchase
Agreement and the other documents delivered pursuant thereto constitute the full and entire
understanding and agreement between the parties with regard to the subjects hereof and no party
shall be liable or bound to any other in any manner by any representations, warranties, covenants
and agreements except as specifically set forth herein and therein. Upon the effective date of
this Agreement as set forth in Section 5.13 below, the Prior Agreement is hereby amended and
restated in its entirety as set forth herein and shall be of no further force or effect.

     5.4 Severability. In the event one or more of the provisions of this Agreement should, for
any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provisions of this Agreement,

22.

 

and this
Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

     5.5 Amendment and Waiver.

     (a) Except as otherwise expressly provided, this Agreement may be amended or modified only
upon the written consent of the Company and the holders of at least a majority of the Registrable
Securities, provided however, that so long as ECI or its affiliates continue to hold Registrable
Securities, the written consent of ECI shall be required for any amendment or modification of
Sections 3.10.

     (b) Except as otherwise expressly provided, the obligations of the Company and the rights of
the Holders under this Agreement may be waived only with the written consent of the holders of at
least a majority of the Registrable Securities.

     (c) For the purposes of determining the number of Holder or Investors entitled to vote or
exercise any rights hereunder, the Company shall be entitled to rely solely on the list of record
holders of its stock as maintained by or on behalf of the Company.

23.

 

     5.6 Delays or Omissions. It is agreed that no delay or omission to exercise any right, power,
or remedy accruing to any Holder, upon any breach, default or noncompliance of the Company under
this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a
waiver of any such breach, default or noncompliance, or any acquiescence therein, or of any similar
breach, default or noncompliance thereafter occurring. It is further agreed that any waiver,
permit, consent, or approval of any kind or character on any Holder’s part of any breach, default
or noncompliance under this Agreement or any waiver on such Holder’s part of any provisions or
conditions of this Agreement must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Agreement, by law, or
otherwise afforded to Holders, shall be cumulative and not alternative.

     5.7 Notices. All notices required or permitted hereunder shall be in writing and shall be
deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by
confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if
not, then on the next business day, (c) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt. All communications shall be sent to the party to be notified at the address as set forth
on the signature pages hereof or Exhibit A hereto or at such other address as such party may
designate by ten (10) days advance written notice to the other parties hereto.

     5.8 Attorneys’ Fees. In the event that any suit or action is instituted to enforce any
provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from
the losing party all fees, costs and expenses of enforcing any right of such prevailing party under
or with respect to this Agreement, including without limitation, such reasonable fees and expenses
of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses
of appeals.

     5.9 Titles and Subtitles. The titles of the sections and subsections of this Agreement are
for convenience of reference only and are not to be considered in construing this Agreement.

     5.10 Additional Investors. Notwithstanding anything to the contrary contained herein, if the
Company shall issue additional shares of its Series D Stock pursuant to the Purchase Agreement, any
purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and
delivering an additional counterpart signature page to this Agreement and shall be deemed an
“Investor,” a “Holder” and a party hereunder.

     5.11 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one instrument.

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

24.

 

     5.13 Effective Date Of Agreement. This Agreement and the rights and obligations contained
herein shall be effective immediately upon and simultaneously with the Closing as defined in the
Purchase Agreement.

[THIS SPACE INTENTIONALLY LEFT BLANK]

25.

 

In Witness Whereof, the parties hereto have executed this Amended and Restated
Investor Rights Agreement as of the date set forth in the first paragraph hereof.

COMPANY:

Veraz Networks, Inc.

	 	 	 	 	 
	By:

	 	/s/ Doug Sabella
 

	 	 
	 

	 	Doug Sabella, Chief Executive Officer	 	 

	 	 	 	 	 
	Address:

	 	926 Rock Ave., Suite 20
	 	 
	 

	 	San Jose, CA 95131	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	ECI Telecom Ltd.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Giora Bitan
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:
	 	Giora Bitan	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President and Chief	 	 
	 

	 	 	 	Financial Officer	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	STAR BAY TECHNOLOGY VENTURES IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By Levensohn Capital Partners II LLC,	 	 
	 	 	its General Partner	 	 
	 	 	By Levensohn Venture Partners LLC	 	 
	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pascal N. Levensohn
 

	 	 
	 

	 	 	 	Pascal N. Levensohn, President	 	 
	 
	 	 	 	 	 	 
	 	 	STAR BAY PARTNERS, L.P. (ROLLOVER FUND)	 	 
	 
	 	 	 	 	 	 
	 	 	By APH Capital Management LLC,	 	 
	 	 	its General Partner	 	 
	 	 	By Levensohn Venture Partners LLC	 	 
	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pascal N. Levensohn
 

	 	 
	 

	 	 	 	Pascal N. Levensohn, President	 	 
	 
	 	 	 	 	 	 
	 	 	STAR BAY ENTREPRENEURS FUND, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By Levensohn Venture Partners LLC	 	 
	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pascal N. Levensohn
 

	 	 
	 

	 	 	 	Pascal N. Levensohn, President	 	 
	 
	 	 	 	 	 	 
	 	 	STAR BAY ASSOCIATES FUND, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By Levensohn Venture Partners LLC	 	 
	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pascal N. Levensohn
 

	 	 
	 

	 	 	 	Pascal N. Levensohn, President	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	Comdisco Ventures Fund A, LLC 	 	 
	 	 	Successor in Interest to Comdisco, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ John W. Bullock
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:
	 	John W. Bullock	 	 
	 
	 	 	 	 	 	 
	 	 	Title: Manager	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	Battery Ventures V, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Battery Partners V, LLC	 	 
	 

	 	 	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Morgan M. Jones	 	 
	 	 	 
	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 Member Manager	 	 
	 
	 	 	 	 	 	 
	 	 	Battery Ventures Convergence Fund, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Battery Convergence Partners, LLC	 	 
	 

	 	 	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Morgan M. Jones	 	 
	 	 	 
	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 Member Manager	 	 
	 
	 	 	 	 	 	 
	 	 	Battery Investment Partners V, LLC	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Morgan M. Jones	 	 
	 	 	 
	 	 
	 

	 	Name:	 	 	 	 
	 	 	Title: Member Manager	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	Norwest Venture Partners VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Itasca VC Partners VII, LLP	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Kurt L. Betcher	 	 
	 	 	 
	 	 
	 

	 	Name:
	 	Kurt L. Betcher	 	 
	 

	 	Title:
	 	Administrative Partner & CFO	 	 
	 
	 	 	 	 	 	 
	 	 	Norwest Venture Partners IX, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Genesis VC Partners IX, LLC	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Kurt L. Betcher	 	 
	 	 	 
	 	 
	 

	 	Name:
	 	Kurt L. Betcher	 	 
	 

	 	Title:
	 	Administrative Partner & CFO	 	 
	 
	 	 	 	 	 	 
	 	 	NVP Entrepreneurs Fund IX, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Genesis VC Partners IX, LLC	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Kurt L. Betcher	 	 
	 	 	 
	 	 
	 

	 	Name:
	 	Kurt L. Betcher	 	 
	 

	 	Title:
	 	Administrative Partner & CFO	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	Norwest Venture Partners VII-A, LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: Itasca VC Partners VII-A, LLC, General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Kurt L. Betcher	 	 
	 	 	 
	 	 
	 

	 	Name:
	 	Kurt L. Betcher	 	 
	 

	 	Title:
	 	Administrative Partner & CFO	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	Dominion Capital Management L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Robert Molke
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:
	 	Robert Molke	 	 
	 
	 	 	 	 	 	 
	 	 	Title: Manager	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	Comerica Bank, successor by merger to 	 	 
	 	 	Comerica Bank-California, a Michigan 	 	 
	 	 	Banking Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Kenneth W. Lepest
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:
	 	Kenneth W. Lepest	 	 
	 
	 	 	 	 	 	 
	 	 	Title: FVP-TLS Division	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	LMIA Coinvestment LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Ronald D. Ulich
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:
	 	Ronald D. Ulich	 	 
	 
	 	 	 	 	 	 
	 	 	Title: Vice President	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

In Witness Whereof, the parties hereto have executed this Amended and
Restated Investor Rights Agreement as of the date set forth in the first paragraph
hereof.

	 	 	 	 	 	 	 
	 	 	Argonaut Holdings	 	 
	 
	 	 	 	 	 	 
	 	 	By: Argonaut Private Equity LLC, its Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Jason Martin
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:
	 	Jason Martin	 	 
	 
	 	 	 	 	 	 
	 	 	Title: Managing Director	 	 

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

Exhibit A

Schedule of Investors

ECI Telecom Ltd.

Star Bay Technology Ventures IV, L.P.

Star Bay Partners, L.P. (Rollover Fund)

Star Bay Entrepreneurs Fund, L.P.

Star Bay Associates Fund, L.P.

Comdisco, Inc.

GATX Ventures, Inc., a Delaware Corporation

Battery Ventures V, L.P.

Battery Ventures Convergence Fund, L. P.

Battery Investment Partners V, LLC

Norwest Venture Partners VII, L.P.

Norwest Venture Partners IX, L.P.

NVP Entrepreneurs Fund IX, L.P.

KPCB Holdings, Inc., as Nominee

Dominion Capital Management L.L.C.

Comerica Bank, successor by merger to Comerica Bank-California, a Michigan Banking
Corporation

Liberty Mutual Insurance Company

Argonaut Holdings

LMIA Coinvestment LLC

Norwest Venture Partners VII-A, LP

A-1

SCHEDULE OF INVESTORS

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