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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, DC 20549 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT PURSUANT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TO SECTION 13 OR 15(D) OF THE </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date of Report </B>(Date of earliest
event reported)<B>: July 13, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TRANSWITCH CORPORATION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; font-weight: bold; text-align: center">DELAWARE</TD>
    <TD STYLE="width: 33%; font-weight: bold; text-align: center">0-25996</TD>
    <TD STYLE="width: 33%; font-weight: bold; text-align: center">06-1236189</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of</TD>
    <TD STYLE="text-align: center">(Commission</TD>
    <TD STYLE="text-align: center">(I.R.S. Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">incorporation)</TD>
    <TD STYLE="text-align: center">&nbsp;File Number)</TD>
    <TD STYLE="text-align: center">&nbsp;&nbsp; Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Three Enterprise Drive </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Shelton, Connecticut 06484 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)
(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's telephone number, including
area code: <B>(203) 929-8810 </B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Not Applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name or former address, if changed
since last report.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -27pt">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -27pt">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -27pt">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 16, 2012, TranSwitch
Corporation, a Delaware corporation (the &ldquo;Company&rdquo;), entered into a Common Stock Purchase Agreement (the &ldquo;Purchase
Agreement&rdquo;) with Aspire Capital Fund, LLC, an Illinois limited liability company (&ldquo;Aspire Capital&rdquo;), which provides
that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up
to an aggregate of $11 million of shares of the Company&rsquo;s common stock (the &ldquo;Purchase Shares&rdquo;) over the two-year
term of the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><U>Summary of terms
of Purchase Agreement</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Purchase
Agreement, the Company initially will sell 990,099 Purchase Shares to Aspire Capital for the purchase price of $1,000,000.&nbsp;&nbsp;Thereafter,
on any business day on which the closing sale price of the Company&rsquo;s common stock equals or exceeds $0.75 per share, over
the 24-month term of the Purchase Agreement, the Company has the right, in its sole discretion, to present Aspire Capital with
a purchase notice (each, a &ldquo;Purchase Notice&rdquo;) directing Aspire Capital to purchase up to 50,000 Purchase Shares per
business day; however, no sale pursuant to such Purchase Notice may exceed five hundred thousand dollars ($500,000) per business
day, unless the Company and Aspire Capital mutually agree.&nbsp;&nbsp;The Company and Aspire Capital also may mutually agree to
increase the number of shares that may be sold per business day to as much as an additional 1,000,000 Purchase Shares per business
day.&nbsp;&nbsp;The purchase price per Purchase Share pursuant to such Purchase Notice (the &ldquo;Purchase Price&rdquo;) is the
lower of (i) the lowest sale price for the Company&rsquo;s common stock on the date of sale or (ii) the arithmetic average of the
three lowest closing sale prices for the Company&rsquo;s common stock during the 12 consecutive business days ending on the business
day immediately preceding the purchase date of those securities.&nbsp;&nbsp;The applicable Purchase Price will be determined prior
to delivery of any Purchase Notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, on any
date on which the Company submits a maximum Purchase Notice to Aspire Capital, the Company also has the right, in its sole discretion,
to present Aspire Capital with a volume-weighted average price purchase notice (each, a &ldquo;VWAP Purchase Notice&rdquo;) directing
Aspire Capital to purchase an amount of the Company&rsquo;s common stock equal to a percentage (not to exceed 15%, which limitation
may be increased to 30% by the mutual agreement of the parties) of the aggregate shares of common stock traded on the next business
day (the &ldquo;VWAP Purchase Date&rdquo;), subject to a maximum number of shares determined by the Company (the &ldquo;VWAP Purchase
Share Volume Maximum&rdquo;).&nbsp;&nbsp;The purchase price per Purchase Share pursuant to such VWAP Purchase Notice (the &ldquo;VWAP
Purchase Price&rdquo;) shall be the lower of (i) the closing sale price on the date of sale and (ii) 95% of the volume weighted
average price for the Company&rsquo;s common stock traded on the NASDAQ Capital Market on (i) the VWAP Purchase Date if the aggregate
shares to be purchased on that date does not exceeded the VWAP Purchase Share Volume Maximum, or (ii) the portion of such business
day until such time as the aggregate shares to be purchased will equal the VWAP Purchase Share Volume Maximum.&nbsp;&nbsp;Further,
if the sale price of the Company&rsquo;s common stock falls on the VWAP Purchase Date below the greater of (i) 90% of the closing
price of our common stock on the business day immediately preceding the VWAP Purchase Date or (ii) the price set by us in the VWAP
Purchase Notice (the &ldquo;VWAP Minimum Price Threshold&rdquo;), the VWAP Purchase Price will be determined using the percentage
in the VWAP Purchase Notice of the total shares traded for such portion of the VWAP Purchase Date prior to the time that the sale
price of our common stock fell below the VWAP Minimum Price Threshold and the volume weighted average price of our common stock
sold during such portion of the VWAP Purchase Date prior to the time that the sale price of our common stock fell below the VWAP
Minimum Price Threshold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The number of Purchase
Shares covered by, and the timing of, each Purchase Notice or VWAP Purchase Notice are determined by the Company, at its sole discretion.&nbsp;&nbsp;The
Company may deliver multiple Purchase Notices and VWAP Purchase Notices to Aspire Capital from time to time during the term of
the Purchase Agreement, so long as the most recent purchase has been completed. There are no trading volume requirements or restrictions
under the Purchase Agreement. Aspire Capital has no right to require any sales by the Company, but is obligated to make purchases
as directed in accordance with the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Purchase Agreement
contains customary representations, warranties, covenants, closing conditions and indemnification and termination provisions. The
Purchase Agreement may be terminated by the Company at any time, at its discretion, without any cost or penalty. Aspire Capital
has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company&rsquo;s
common stock.&nbsp;&nbsp;The Company did not pay any additional amounts to reimburse or otherwise compensate Aspire Capital in
connection with the transaction. There are no limitations on use of proceeds, financial or business covenants, restrictions on
future fundings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement.&nbsp;
In consideration for entering into the Purchase Agreement, the Company issued 297,030 shares of its common stock (the &ldquo;Commitment
Shares&rdquo;) to Aspire Capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company&rsquo;s
net proceeds will depend on the Purchase Price, the VWAP Purchase Price and the frequency of the Company&rsquo;s sales of Purchase
Shares to Aspire Capital; provided, however, that the maximum aggregate proceeds from sales of Purchase Shares is $11 million under
the terms of the Purchase Agreement.&nbsp;&nbsp;The Company&rsquo;s delivery of Purchase Notices and VWAP Purchase Notices will
be made subject to market conditions, in light of the Company&rsquo;s capital needs from time to time and under the limitations
contained in the Purchase Agreement. In order to satisfy any NASDAQ market requirements, the number of shares which may be issued
under the Purchase Agreement may not exceed an amount that would result in the Company breaching its obligations under the rules
of the NASDAQ Capital Market. The Company expects to use proceeds from sales of Purchase Shares for general corporate purposes
and working capital requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><U>Registration Rights</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with
the Purchase Agreement, the Company also entered into a Registration Rights Agreement (the &ldquo;Registration Rights Agreement&rdquo;)
with Aspire Capital, dated July 16, 2012.&nbsp;&nbsp;The Registration Rights Agreement provides, among other things, that the Company
will register the sale of the Commitment Shares and the Purchase Shares (collectively, the &ldquo;Securities&rdquo;) to Aspire
Capital.&nbsp;&nbsp;In accordance with the Registration Rights Agreement, the sale of the Securities to Aspire Capital is being
made under the Company&rsquo;s Registration Statement on Form S-3 (File No. 333-162609), filed with the Securities and Exchange
Commission on October 21, 2009, as amended and supplemented from time to time (the &ldquo;Registration Statement&rdquo;).&nbsp;&nbsp;The
Company further agreed to keep the Registration Statement effective and to indemnify Aspire Capital for certain liabilities in
connection with the sale of the Securities under the terms of the Registration Rights Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The foregoing description
of the Purchase Agreement and the Registration Rights Agreement is not a complete description of all the terms of those agreements.&nbsp;&nbsp;For
a complete description of all the terms, we refer you to the full text of the Purchase Agreement and the Registration Rights Agreement,
copies of which are filed herewith as Exhibits 10.1 and 4.1, respectively, to this Current Report on Form 8-K and are incorporated
herein by reference.&nbsp;&nbsp;This Current Report on Form 8-K also incorporates by reference the Purchase Agreement and Registration
Rights Agreement into the Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.02 Termination of a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On February 10, 2012,
the Company entered into an At Market Issuance Sales Agreement (the &ldquo;Sales Agreement&rdquo;) with MLV &amp; Co. LLC (&ldquo;MLV&rdquo;),
pursuant to which the Company, from time to time, could issue and sell through MLV, acting as the Company&rsquo;s sales agent,
shares of the Company&rsquo;s common stock. Under the terms of the Sales Agreement, the Company could issue and sell through MLV
shares of the Company&rsquo;s common stock for aggregate gross sales proceeds of up to $10,000,000, subject to the terms and conditions
set forth in the Sales Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 13, 2012, the
Company delivered to MLV notice of termination of the Sales Agreement, which termination will become effective July 23, 2012. The
Company has decided to terminate the Sales Agreement because it does not intend to utilize the Sales Agreement to raise additional
capital. The Company will not incur any termination penalties as a result of its termination of the Sales Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A description of the
terms and conditions of the Sales Agreement is set forth in the Company&rsquo;s current report on Form 8-K filed on February 10,
2012 and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01 Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 17, 2012, the
Company issued a press release announcing that it has entered into the Purchase Agreement with Aspire Capital. A copy of the press
release is filed as Exhibit 99.1 to this Current Report and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 17, 2012, pursuant
to Rule 424(b)(3) under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), the Company filed a prospectus
supplement (the &ldquo;ATM Prospectus Supplement&rdquo;) amending the prospectus supplement dated February 10, 2012 related to
the Sales Agreement with MLV, to terminate any future sales of its common stock under the ATM Prospectus Supplement pursuant to
the Sales Agreement, effective July 17, 2012. The ATM Prospectus Supplement is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 17, 2012, pursuant
to Rule 424(b)(5) under the Securities Act, the Company filed a prospectus supplement (the &ldquo;Aspire Capital Prospectus Supplement&rdquo;)
to the Company&rsquo;s Registration Statement on Form S-3 (File No. 333-162609) describing the Aspire Capital offering referred
to above in Item 1.01. The Aspire Capital Prospectus Supplement is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(d) Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="width: 8%; vertical-align: top; border-bottom: black 1.5pt solid"><B>Exhibit <BR>
    Number</B></TD>
    <TD STYLE="width: 1%; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 91%; vertical-align: bottom; border-bottom: black 1.5pt solid; font-weight: bold; text-align: center">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Rights Agreement, dated as of July 16, 2012, by and between the Company and Aspire Capital Fund, LLC. &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">5.1</TD>
    <TD>&nbsp;</TD>
    <TD>Opinion of Pierce Atwood LLP.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Common Stock Purchase Agreement, dated as of July 16, 2012, by and between the Company and Aspire Capital Fund, LLC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">23.1</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of Pierce Atwood LLP (included in Exhibit 5.1).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press Release, dated July 17, 2012.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B>TranSwitch Corporation</B></FONT></P>
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    <TD STYLE="width: 30%; text-align: center">Date: July 17, 2012</TD>
    <TD STYLE="width: 20%">&nbsp;</TD>
    <TD STYLE="width: 4%">By:</TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid">/s/ Robert Bosi</TD></TR>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name: Robert Bosi</TD></TR>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>Title: Chief Financial Officer</TD></TR>
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[{"type": "8-K", "sequence": "1", "filename": "v318712_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 28790}]
{"company-data": {"conformed-name": "TRANSWITCH CORP /DE", "cik": "0000944739", "assigned-sic": "3674", "irs-number": "061236189", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-25996", "film-number": "12964644"}, "business-address": {"street1": "THREE ENTERPRISE DRIVE", "city": "SHELTON", "state": "CT", "zip": "06484", "phone": "2039298810"}, "mail-address": {"street1": "THREE ENTERPRISE DRIVE", "city": "SHELTON", "state": "CT", "zip": "06484"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest
event reported)
: July 13, 2012
TRANSWITCH CORPORATION
(Exact name of registrant as specified in
its charter)
DELAWARE
0-25996
06-1236189
(State or other jurisdiction of
(Commission
(I.R.S. Employer
incorporation)
File Number)
Identification No.)
Three Enterprise Drive
Shelton, Connecticut 06484
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including
area code:
(203) 929-8810
Not Applicable
(Former name or former address, if changed
since last report.)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction
A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
On July 16, 2012, TranSwitch
Corporation, a Delaware corporation (the "Company"), entered into a Common Stock Purchase Agreement (the "Purchase
Agreement") with Aspire Capital Fund, LLC, an Illinois limited liability company ("Aspire Capital"), which provides
that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up
to an aggregate of $11 million of shares of the Company's common stock (the "Purchase Shares") over the two-year
term of the Purchase Agreement.
Summary of terms
of Purchase Agreement
Under the Purchase
Agreement, the Company initially will sell 990,099 Purchase Shares to Aspire Capital for the purchase price of $1,000,000.  Thereafter,
on any business day on which the closing sale price of the Company's common stock equals or exceeds $0.75 per share, over
the 24-month term of the Purchase Agreement, the Company has the right, in its sole discretion, to present Aspire Capital with
a purchase notice (each, a "Purchase Notice") directing Aspire Capital to purchase up to 50,000 Purchase Shares per
business day; however, no sale pursuant to such Purchase Notice may exceed five hundred thousand dollars ($500,000) per business
day, unless the Company and Aspire Capital mutually agree.  The Company and Aspire Capital also may mutually agree to
increase the number of shares that may be sold per business day to as much as an additional 1,000,000 Purchase Shares per business
day.  The purchase price per Purchase Share pursuant to such Purchase Notice (the "Purchase Price") is the
lower of (i) the lowest sale price for the Company's common stock on the date of sale or (ii) the arithmetic average of the
three lowest closing sale prices for the Company's common stock during the 12 consecutive business days ending on the business
day immediately preceding the purchase date of those securities.  The applicable Purchase Price will be determined prior
to delivery of any Purchase Notice.
In addition, on any
date on which the Company submits a maximum Purchase Notice to Aspire Capital, the Company also has the right, in its sole discretion,
to present Aspire Capital with a volume-weighted average price purchase notice (each, a "VWAP Purchase Notice") directing
Aspire Capital to purchase an amount of the Company's common stock equal to a percentage (not to exceed 15%, which limitation
may be increased to 30% by the mutual agreement of the parties) of the aggregate shares of common stock traded on the next business
day (the "VWAP Purchase Date"), subject to a maximum number of shares determined by the Company (the "VWAP Purchase
Share Volume Maximum").  The purchase price per Purchase Share pursuant to such VWAP Purchase Notice (the "VWAP
Purchase Price") shall be the lower of (i) the closing sale price on the date of sale and (ii) 95% of the volume weighted
average price for the Company's common stock traded on the NASDAQ Capital Market on (i) the VWAP Purchase Date if the aggregate
shares to be purchased on that date does not exceeded the VWAP Purchase Share Volume Maximum, or (ii) the portion of such business
day until such time as the aggregate shares to be purchased will equal the VWAP Purchase Share Volume Maximum.  Further,
if the sale price of the Company's common stock falls on the VWAP Purchase Date below the greater of (i) 90% of the closing
price of our common stock on the business day immediately preceding the VWAP Purchase Date or (ii) the price set by us in the VWAP
Purchase Notice (the "VWAP Minimum Price Threshold"), the VWAP Purchase Price will be determined using the percentage
in the VWAP Purchase Notice of the total shares traded for such portion of the VWAP Purchase Date prior to the time that the sale
price of our common stock fell below the VWAP Minimum Price Threshold and the volume weighted average price of our common stock
sold during such portion of the VWAP Purchase Date prior to the time that the sale price of our common stock fell below the VWAP
Minimum Price Threshold.
The number of Purchase
Shares covered by, and the timing of, each Purchase Notice or VWAP Purchase Notice are determined by the Company, at its sole discretion.  The
Company may deliver multiple Purchase Notices and VWAP Purchase Notices to Aspire Capital from time to time during the term of
the Purchase Agreement, so long as the most recent purchase has been completed. There are no trading volume requirements or restrictions
under the Purchase Agreement. Aspire Capital has no right to require any sales by the Company, but is obligated to make purchases
as directed in accordance with the Purchase Agreement.
The Purchase Agreement
contains customary representations, warranties, covenants, closing conditions and indemnification and termination provisions. The
Purchase Agreement may be terminated by the Company at any time, at its discretion, without any cost or penalty. Aspire Capital
has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company's
common stock.  The Company did not pay any additional amounts to reimburse or otherwise compensate Aspire Capital in
connection with the transaction. There are no limitations on use of proceeds, financial or business covenants, restrictions on
future fundings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement. 
In consideration for entering into the Purchase Agreement, the Company issued 297,030 shares of its common stock (the "Commitment
Shares") to Aspire Capital.
The Company's
net proceeds will depend on the Purchase Price, the VWAP Purchase Price and the frequency of the Company's sales of Purchase
Shares to Aspire Capital; provided, however, that the maximum aggregate proceeds from sales of Purchase Shares is $11 million under
the terms of the Purchase Agreement.  The Company's delivery of Purchase Notices and VWAP Purchase Notices will
be made subject to market conditions, in light of the Company's capital needs from time to time and under the limitations
contained in the Purchase Agreement. In order to satisfy any NASDAQ market requirements, the number of shares which may be issued
under the Purchase Agreement may not exceed an amount that would result in the Company breaching its obligations under the rules
of the NASDAQ Capital Market. The Company expects to use proceeds from sales of Purchase Shares for general corporate purposes
and working capital requirements.
Registration Rights
In connection with
the Purchase Agreement, the Company also entered into a Registration Rights Agreement (the "Registration Rights Agreement")
with Aspire Capital, dated July 16, 2012.  The Registration Rights Agreement provides, among other things, that the Company
will register the sale of the Commitment Shares and the Purchase Shares (collectively, the "Securities") to Aspire
Capital.  In accordance with the Registration Rights Agreement, the sale of the Securities to Aspire Capital is being
made under the Company's Registration Statement on Form S-3 (File No. 333-162609), filed with the Securities and Exchange
Commission on October 21, 2009, as amended and supplemented from time to time (the "Registration Statement").  The
Company further agreed to keep the Registration Statement effective and to indemnify Aspire Capital for certain liabilities in
connection with the sale of the Securities under the terms of the Registration Rights Agreement.
The foregoing description
of the Purchase Agreement and the Registration Rights Agreement is not a complete description of all the terms of those agreements.  For
a complete description of all the terms, we refer you to the full text of the Purchase Agreement and the Registration Rights Agreement,
copies of which are filed herewith as Exhibits 10.1 and 4.1, respectively, to this Current Report on Form 8-K and are incorporated
herein by reference.  This Current Report on Form 8-K also incorporates by reference the Purchase Agreement and Registration
Rights Agreement into the Registration Statement.
Item 1.02 Termination of a Material Definitive Agreement.
On February 10, 2012,
the Company entered into an At Market Issuance Sales Agreement (the "Sales Agreement") with MLV & Co. LLC ("MLV"),
pursuant to which the Company, from time to time, could issue and sell through MLV, acting as the Company's sales agent,
shares of the Company's common stock. Under the terms of the Sales Agreement, the Company could issue and sell through MLV
shares of the Company's common stock for aggregate gross sales proceeds of up to $10,000,000, subject to the terms and conditions
set forth in the Sales Agreement.
On July 13, 2012, the
Company delivered to MLV notice of termination of the Sales Agreement, which termination will become effective July 23, 2012. The
Company has decided to terminate the Sales Agreement because it does not intend to utilize the Sales Agreement to raise additional
capital. The Company will not incur any termination penalties as a result of its termination of the Sales Agreement.
A description of the
terms and conditions of the Sales Agreement is set forth in the Company's current report on Form 8-K filed on February 10,
2012 and is incorporated herein by reference.
Item 8.01 Other Events.
On July 17, 2012, the
Company issued a press release announcing that it has entered into the Purchase Agreement with Aspire Capital. A copy of the press
release is filed as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
On July 17, 2012, pursuant
to Rule 424(b)(3) under the Securities Act of 1933, as amended (the "Securities Act"), the Company filed a prospectus
supplement (the "ATM Prospectus Supplement") amending the prospectus supplement dated February 10, 2012 related to
the Sales Agreement with MLV, to terminate any future sales of its common stock under the ATM Prospectus Supplement pursuant to
the Sales Agreement, effective July 17, 2012. The ATM Prospectus Supplement is incorporated by reference herein.
On July 17, 2012, pursuant
to Rule 424(b)(5) under the Securities Act, the Company filed a prospectus supplement (the "Aspire Capital Prospectus Supplement")
to the Company's Registration Statement on Form S-3 (File No. 333-162609) describing the Aspire Capital offering referred
to above in Item 1.01. The Aspire Capital Prospectus Supplement is incorporated by reference herein.
Item 9.01  Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number
Description
4.1
Registration Rights Agreement, dated as of July 16, 2012, by and between the Company and Aspire Capital Fund, LLC.
5.1
Opinion of Pierce Atwood LLP.
10.1
Common Stock Purchase Agreement, dated as of July 16, 2012, by and between the Company and Aspire Capital Fund, LLC.
23.1
Consent of Pierce Atwood LLP (included in Exhibit 5.1).
99.1
Press Release, dated July 17, 2012.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
TranSwitch Corporation
Date: July 17, 2012
By:
/s/ Robert Bosi
Name: Robert Bosi
Title: Chief Financial Officer