AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT
Exhibit 4.3
AMENDMENT NO. 1 TO
SECOND AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT
OF PAR3 COMMUNICATIONS, INC.
This Amendment No. 1 (the Amendment) to Second Amended and Restated Investors Rights Agreement, is entered into as of December 6, 2005, by and between PAR3 Communications, Inc., a Washington corporation (the Company), and the holders of at least a majority of the Companys Preferred Stock listed on the Schedule of Investors attached as Exhibit A to such agreement (collectively, the Investors), Scott Sikora and Michael Ho (the Founders), and the former holders of the Series E Preferred Stock of EnvoyWorldWide, Inc., a Delaware corporation (EnvoyWorldWide), listed on Exhibit A hereto (the EnvoyWorldWide Holders).
RECITALS
A. The Company, the Investors, and the Founders are parties to that certain Second Amended and Restated Investors Rights Agreement, dated as of August 7, 2002 (the Agreement). Capitalized terms used herein without definition shall have the meaning ascribed to them in the Agreement.
B. The Company, EWW Acquisition Corp., a wholly-owned subsidiary of the Company and a Delaware corporation (Merger Sub), and EnvoyWorldWide are parties to an Agreement and Plan of Merger dated as of November 21, 2005, whereby Merger Sub will merge with and into EnvoyWorldWide (the Merger). Pursuant to the Merger, the Company will issue shares of its Series C-1 Preferred Stock (the Series C-1 Preferred) to the EnvoyWorldWide Holders (the Shares). As a condition to the effectiveness of the Merger, the EnvoyWorldWide Holders have required the amendment of the Agreement to add the EnvoyWorldWide Holders as parties thereto.
C. The Agreement may be amended with the written consent of the Company and Holders of a majority in interest of the Registrable Securities, not including Common Stock held by the Founders.
In consideration of the mutual promises and covenants set forth herein, the parties agree to amend and restate the Agreement to add the EnvoyWorldWide Holders as parties to the Agreement as follows:
AGREEMENT
1. Amendment of Preamble. The preamble of the Agreement is hereby amended and restated in its entirety to read as follows:
THIS SECOND AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT (this Agreement) is made and entered into as of August 7,
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2002 by and among PAR3 Communications, Inc., a Washington corporation (the Company), Scott Sikora and Michael Ho (collectively, the Founders) and the parties, including the holders of Preferred Stock (as defined below) listed on the Schedule of Investors attached hereto as Exhibit A and Exhibit A-1 (each an Investor and collectively, the Investors).
2. Amendment of Section 2.3. Section 2.3 of the Agreement is hereby amended and restated in its entirety to read as follows;
Common Stock shall mean the Companys Common Stock and shares of Common Stock issued or issuable upon conversion of the Companys outstanding shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series C-1 Preferred Stock.
2. Amendment of Section 2.7. Section 2.7 of the Agreement is hereby amended and restated in its entirety to read as follows;
Holder means any holder of then-outstanding Registrable Securities.
3. Amendment of Section 2.9. Section 2.9 of the Agreement is hereby amended and restated in its entirety to read as follows:
Preferred Stock means the Companys outstanding shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series C-1 Preferred Stock.
4. Addition of New Section 2.22. The Agreement is hereby amended to insert a new Section 2.22 immediately following Section 2.21 to read in its entirety as follows:
Series C-1 Preferred Stock means the Series C-1 Preferred Stock of the Company.
5. Amendment of Section 9.1.4. Section 9.1.4 of the Agreement is hereby amended and restated in its entirety to read as follows:
At each election of directors in which the holders of Common Stock and holders of Series A, Series B, Series C and Series C-1 Preferred Stock, voting together as a single class, are entitled to elect directors of the Company, the Founders and Investors shall vote all of their respective shares so as to elect: (i) a nominee that is mutually acceptable to the other members of the Companys Board of Directors and is approved by a majority of the Series A Preferred Stock, Series B Preferred Stock, Series C and Series C-1 Preferred Stock, and (ii) the person then serving as the Chief Executive Officer of the Company. Any vote taken to remove any director elected pursuant to this Section 9.1.4, or to fill any vacancy created by the resignation, removal or death of a director elected pursuant to this Section 9.1.4, shall also be subject to the provisions of this Section 9.1.4.
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6. Amendment of Section 12.5. Section 12.5 of the Agreement is hereby amended and restated in its entirety to read as follows:
Amendment. Any provision of this Agreement may be amended, waived, modified, discharged or terminated only with the written consent of the Company and the Holders of a majority in interest of the Registrable Securities (or Common Stock issuable upon conversion thereof) not including the Founders Stock; provided that if such amendment has the effect of affecting the Founders Stock (i) in a manner different than securities issued to the Investors and (ii) in a manner adverse to the interests of the holders of the Founders Stock, then such amendment shall require the consent of the holder or holders of a majority of the Founders Stock; provided further, that Section 9.1.1 of this Agreement shall not be amended or waived without the written consent of Draper Fisher Jurvetson; Section 9.1.2 of this Agreement shall not be amended or waived without the written consent of Nokia Ventures; and Section 9.1.3 of this Agreement shall not be amended or waived without the written consent of InterWest Partners; provided further, that if such amendment to this Agreement materially and adversely affects a series of Preferred Stock in a manner different from the other series of Preferred Stock, such amendment shall require the consent of the majority of the holders of Registrable Securities constituting such series to be effective. Any amendment or waiver effected in accordance with this paragraph will be binding upon the Company and each Holder of any securities subject to this Agreement (including securities into which such securities are convertible) and future holders of all such securities. Any Holder may waive his or her rights or the Companys obligations hereunder without obtaining the consent of any other person.
7. Addition of New Exhibit A-1. The Agreement is hereby amended to add Exhibit A hereto as Exhibit A-1 to the Agreement.
8. Amendment of Agreement. The undersigned Investors, the Company and the Founders hereby consent and agree that this Agreement hereby amends the Agreement, and that this Amendment is hereby binding upon and shall contain the obligations of all of the parties to the Agreement with respect to the shares of capital stock of the Company now held by all such parties or hereinafter acquired. The Company, the Investors and the Founders hereby acknowledge and agree that the consent and agreement referenced in this Section 8 is hereby given by more than the required number of Holders of the capital stock of the Company necessary to amend the Agreement pursuant to the terms thereof and add the EnvoyWorldWide Holders as parties thereto.
9. No Other Amendments. Except as expressly amended as set forth above, the Agreement shall remain in full force and effect in accordance with its terms.
10. Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one document.
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The parties have executed this Amendment No. 1 to Second Amended and Restated Investors Rights Agreement of PAR3 Communications, Inc. as of the date first written above.
COMPANY: | ||
PAR3 COMMUNICATIONS, INC. | ||
By: | /s/ Don Schlosser | |
Name: | Don Schlosser | |
Its: | Chief Financial Officer |
SIGNATURE PAGE TO AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED INVESTORS
RIGHTS AGREEMENT OF PAR3 COMMUNICATIONS, INC.
Exhibit A
EnvoyWorldWide Holders
Battery Investment Partners
Battery Ventures Convergence
Battery Ventures V
Longworth Venture Partners, L.P.
Longworth Venture Partners II-A, L.P.
Soffinova Capital
Liberty Mutual Insurance Company
David Page
Jahm Najafi
Francis Najafi
One & Co
William Booth
Josef Von Rickenbach
David R. Clark, Trust
Osprey V.C. Partnership
Barn Ventures
J. Scott Benson
Kitty Clark Rev Trust
E.L. Perry Rev Trust
James H. Wakelin III
Jerome C. Hunsaker, III
George Moussallem
Zarrin-Taj Afridoon
Christopher Williams
Jonathan Clark, Rev Trust
Ben Levitan
Thomas Walker
Jonathan Piper
Martin Streeter
Marcie Hunsaker
Melanie Ranney
David Hunter
Bowen, David & Co (Ben Williams)
Richard Benedson
Patricia Riley Rev Trust
Hampton Lane Corporation
Alain Daste
A. Bancroft Burrage Min Trust
A. Burrage Rev Trust
C. Burrage Min Trust
A-1
K. Burrage Min Trust
S. Burrage Min Trust
Gabriella Haroutunian
Mark H. Knelson
Patricia Meigs
F&C Strasburger
Elizabeth Courtney
Helen Whitney Watriss
Ian Gardiner
Wallace Meigs
Helen D. Burrage
Bruce Lenthall Rev Trust
Joshua Lenthall Rev Trust
Arthur Bowen
Walter Burrage
Steven Hill
Hadi Taheri
Cheryl Martucci
Hedy Page
William Sobo
Claude P. Sheer
Marie Ferguson
Anita Alden Bers
Nicholas Burrage
Lisa Lenthall Rev Trust
Minoo Taheri
Bob Lapides
Paul OBrien
Nelson Blitz
A-2