initial licensing fees
EX-4.10 4 f19065exv4w10.htm EXHIBIT 4.10 exv4w10
EXHIBIT 4.10
THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR RULE 701 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY AN AFFILIATE OF THE COMPANY. NO SALE OR DISPOSITION OF THESE SHARES MAY BE EFFECTED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION RELATED THERETO OR IN COMPLIANCE WITH RULE 144 OR ITS SUCCESSOR OR PURSUANT TO AN OPINION OF COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
Warrant No. | Number of Shares: | |
(subject to adjustment) |
Date of Issuance: July 18, 2005
INSIGNIA SOLUTIONS PLC
Warrant to Purchase American Depositary Shares
Insignia Solutions plc (the Company), for value received equal to $0.0001 per share of Warrant Stock, hereby certifies that or his registered assigns (the Registered Holder), is entitled, subject to the terms set forth below, to have issued to it by the Company, at any time after the six month anniversary of the date hereof and on or before the Expiration Date (as defined in Section 6 below), American depositary shares (ADSs) (as adjusted from time to time pursuant to the provisions of this Warrant), with each ADS representing one ordinary share, 20 pence per share nominal value of the Company, at a per share Exercise Price equal to $1.11 per share (subject to adjustment as hereinafter provided), provided however that the Exercise Price shall be at least the U.S. Dollar equivalent of 20 pence per ADS calculated by reference to the average currency conversion rate quoted by the Bank of America in London as the price for Pounds Sterling purchased with U.S. Dollars prevailing at the date the Warrant is exercised. Notwithstanding any provision hereof to the contrary (and in particular any provision relating to the adjustment of the Exercise Price), the Company shall not be required or permitted to issue any ordinary shares under this Warrant (or have its transfer agent or Depositary issue any ADSs), if such issuance would breach the Companys obligations under the United Kingdom Companies Act 1985. The shares to be issued upon exercise of this Warrant and the exercise price per share, as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the Warrant Stock and the Exercise Price, respectively.
This Warrant is issued pursuant to that certain American Depositary Shares Purchase Agreement dated October 18, 2004 among the Company and certain individuals and entities listed on Exhibit A thereof (the Purchase Agreement). Any capitalized terms used herein, but not defined herein, shall carry those definitions ascribed to them in the Purchase Agreement.
1. Fully Vested Shares on Six Month Anniversary. The shares of Warrant Stock will become fully vested and exercisable as of the date that is six months after the date of this Warrant.
2. Exercise.
(a) Method of Exercise. This Warrant may be exercised by the Registered Holder, in whole or in part, by surrendering this Warrant, with the exercise form appended hereto as Exhibit A duly executed by such Registered Holder.
Holder or by such Registered Holders duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate in writing prior to the date of such exercise, accompanied by payment in full of the Exercise Price payable in respect of the number of shares of Warrant Stock issued upon such exercise. The Exercise Price may be paid by cash, check, wire transfer or by the surrender of promissory notes or other instruments representing indebtedness of the Company to the Registered Holder.
(b) Effective Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 2(a) above. At such time, the person or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such exercise as provided in Section 2(c) below shall be deemed to have become the holder or holders of record of the Warrant Stock represented by such certificates.
(c) Delivery to Holder. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within 10 days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct:
(i) an American Depositary Receipt representing such number of shares of Warrant Stock to which such Registered Holder shall be entitled, and
(ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock equal (giving effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of such shares issued to the Registered Holder upon such exercise as provided in Section 2(a) above.
3. Adjustments.
The following provisions in relation to adjustments shall be subject to the provisions in the opening clause of this Warrant relating to the minimum Exercise Price and to breaches of the United Kingdom Companies Act 1985:
(a) Share subdivision and Dividends. If the Companys outstanding shares shall be subdivided into a greater number of shares or a dividend in ordinary shares shall be paid in respect of the ADSs, the Exercise Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced, subject to the proviso that the Exercise Price shall never be less than the US Dollar equivalent to 20 pence on the date of exercise. If outstanding shares shall be combined into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased. When any adjustment is required to be made in the Exercise Price, the number of shares of Warrant Stock to be issued upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Exercise Price in effect immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately after such adjustment.
(b) Merger, Sale, Reclassification, Etc. In case of any (i) sale or other disposal of all or substantially all of the Companys assets or distribution of property to shareholders (other than distributions payable out of distributable profits available for that purpose), (ii) reclassification, change or conversion of the share capital of the Company or of any reorganization of the Company (or any other company the shares or securities of which are at the time receivable upon the exercise of this Warrant) or (iii) any similar corporate reorganization on or after the date hereof, then and in each such case the holder of this Warrant, upon the exercise hereof at any time thereafter shall be entitled to receive, in lieu of the shares or other securities and property receivable upon the exercise hereof prior to such
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sale or other disposal, reclassification, change, conversion or reorganization, the shares or property to which such holder would have been entitled upon such consummation if such holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in Section 3(a) or 3(b); and in each such case, the terms of this Section 3 shall be applicable to the shares or other securities properly receivable upon the exercise of this Warrant after such sale or other disposal, reclassification, change, conversion or reorganization.
(c) Adjustment Certificate. When any adjustment is required to be made in the Warrant Stock or the Exercise Price pursuant to this Section 3, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Exercise Price after such adjustment and (iii) the kind and amount of shares or other securities or property into which this Warrant shall be exercisable after such adjustment.
4. Transfers.
(a) Unregistered Security. Each holder of this Warrant acknowledges that this Warrant and the Warrant Stock have not been registered under the Securities Act of 1933, as amended (the Securities Act), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise in the absence of (i) an effective registration statement under the Securities Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Stock issued upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect.
(b) Transferability. Subject to the provisions of Section 4(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, to (i) any entity controlling, controlled by or under common control of the Registered Holder that is not in the good faith determination of the Companys Board of Directors involved in a business that is competitive with the Companys business, or (ii) to any other proposed transferee of at least fifty percent (50%) of the Warrant Shares by surrendering the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the principal office of the Company.
(c) Warrant Register. The Company will maintain a register containing the names and addresses of the Registered Holders of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary. Any Registered Holder may change such Registered Holders address as shown on the warrant register by written notice to the Company requesting such change.
5. No Impairment. The Company will not, by amendment of its memorandum and articles of association or through reorganization, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will (subject to Section 14 below) at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment.
6. Termination. This Warrant (and the right to purchase securities upon exercise hereof) shall terminate on the earlier of: (i) April 18, 2010 or (ii) the closing of any sale of all or substantially all of the assets of the Company, or any transaction or series of related transactions in which the Companys shareholders (which shall include, for the avoidance of doubt, indirect shareholders who hold ADSs through the depositary) immediately prior thereto own less than a majority of the voting shares of the Company (or its successor or parent) immediately thereafter (an Acquisition) (the Expiration Date).
7. Notices of Certain Transactions. In case:
(a) the Company shall take a record of the holders of its Ordinary Shares (including ADSs) (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any
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shares of any class or any other securities, or to receive any other right, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or
(b) of any capital reorganization of the Company, any reclassification of the share capital of the Company, or
(c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, then, and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Ordinary Shares (including ADSs) (or such other securities at the time deliverable upon such reorganization, reclassification, transfer, dissolution, liquidation or winding-up) are to be determined.
8. Reservation of Shares. The Company shall ensure that it will have sufficient authorized but unissued share capital out of which it can allot and issue such shares of Warrant Stock as may need to be issued to the Registered Holder upon the exercise of this Warrant.
9. Exchange of Warrants. Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 4 hereof, issue and deliver to or upon the order of such Holder, at the Companys expense, a new Warrant or Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of ADSs called for on the face or faces of the Warrant or Warrants so surrendered.
10. Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.
11. Notices. Any notice required or permitted by this Warrant shall be in writing and shall be deemed duly given upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the regular mail as certified or registered mail (airmail if sent internationally) with postage prepaid, addressed (a) if to the Registered Holder, to the address of the Registered Holder most recently furnished in writing to the Company and (b) if to the Company, to the address set forth on the signature page of this Warrant or as subsequently modified by written notice to the Registered Holder.
12. No Rights as Shareholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any rights by virtue hereof as a shareholder of the Company.
13. No Fractional Shares. No fractional shares of ADSs will be issued in connection with any exercise hereunder.
14. Amendment or Waiver. Any term of this Warrant may be amended or waived upon written consent of the Company and the registered holders of at least 80% of the ADSs issuable upon exercise of the outstanding warrants purchased pursuant to the Purchase Agreement. By acceptance hereof, the Registered Holder acknowledges that in the event the required consent is obtained, any term of this Warrant may be amended or waived with or without the consent of the Registered Holder; provided, however, that any amendment hereof that would materially adversely affect the Registered Holder in a manner different from the holders of the remaining warrants issued pursuant to the Purchase Agreement shall also require the consent of Registered Holder.
15. Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant.
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16 Governing Law. This Warrant and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of CaliforniaEngland,without giving effect to principles of conflicts of law.
17. Registration Rights. The Warrant Shares are subject to the re-sale registration rights described in the Registration Rights Agreement by and between the Company and the Registered Holder and dated October 18, 2004.
18. Representations and Covenants of the Holder. This Warrant has been entered into by the Company in reliance upon the following representations and covenants of the Registered Holder:
(a) Investment Purpose. The Registered Holder is acquiring the Warrant and the ADSs issuable upon exercise of the Warrant for its own account, not as a nominee or agent and with no present intention of selling or otherwise distributing any part thereof.
(b) Private Issue. The Registered Holder understands, except as provided in the Registration Rights Agreement, (i) that neither the Warrant nor the ADSs issuable upon exercise of this Warrant is, nor will be, registered under the Securities Act or qualified under applicable state securities laws on the ground that the issuance contemplated by this Warrant will be exempt from the registration and qualifications requirements thereof pursuant to Section 4(2) of the Securities Act and any applicable state securities laws, and (ii) that the Companys reliance on such exemption is predicated on the representations set forth in this Section 18.
(c) Disposition of Holders Rights. In no event will the Registered Holder make a disposition of the Warrant or the ADSs issuable upon exercise of the Warrant in the absence of (i) an effective registration statement under the Securities Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration and qualification are not required. Notwithstanding the foregoing, the restrictions imposed upon the transferability of any of its rights to acquire ADSs do not apply to transfers from the beneficial owner of any of the aforementioned securities to its nominee or from such nominee to its beneficial owner, and shall terminate as to any particular ADS when (1) such security shall have been effectively registered under the Securities Act and sold by the holder thereof in accordance with such registration or (2) such security shall have been sold without registration in compliance with Rule 144 under the Securities Act, or (3) a letter shall have been issued to the Registered Holder at its request by the staff of the Securities and Exchange Commission (the SEC) or a ruling shall have been issued to the Registered Holder at its request by the SEC stating that no action shall be recommended by such staff or taken by SEC, as the case may be, if such security is transferred without registration under the Securities Act in accordance with the conditions set forth in such letter or ruling and such letter or ruling specifies that no subsequent restrictions on transfer are required. Whenever the restrictions imposed hereunder shall terminate, as hereinabove provided, the Registered Holder or holder of an ADS then outstanding as to which such restrictions have terminated shall be entitled to receive from the Company, without expense to such holder, one or more new certificates for the Warrant or for such ADSs not bearing any restrictive legend.
(d) Financial Risk. The Registered Holder has such business and financial experience as is required to give it the capacity to protect its own interests in connection with its investment.
(e) Accredited Investor. The Registered Holder is an accredited investor as defined by Rule 501 of Regulation D under the Securities Act, as presently in effect.
(f) 4.99% Maximum Share Holding. Notwithstanding anything to the contrary contained herein, the Holder shall not exercise this Warrant to the extent (but only to the extent) that such Holder would be the beneficial owner of more then 4.99% of the shares of the Companys common stock outstanding thereafter. For purposes of this paragraph, beneficial ownership and all determinations and calculations shall be determined and calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and all applicable rules and regulations thereunder. It is expressly a term of this Warrant that the limitations set forth herein shall apply to each successive holder of any of this Warrant. The foregoing restriction may not be altered, amended, deleted or changed in any manner whatsoever unless the holders of a majority of the Companys outstanding shares of common stock and the Holder (or any successive holder) approve such alteration, amendment, deletion or change.
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(g) Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (S12001/1335), as amended, (FPO). To the extent that the Purchaser is a resident of the United Kingdom or would otherwise be subject to the Financial Services and Markets Act 2000, the Purchaser is either a person of a kind described in Article 19 (Investment Professionals), Article 49 (High Net Worth Companies, Unincorporated Association etc.) and/or Article 50 (Sophisticated Investors) of FPO, as presently in effect.
19. Representations and Warranties of the Company. This Warrant has been entered into by the Registered Holder in reliance upon the following representations and covenants of the Company:
(a) Authorization. The Warrant has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.
(b) Valid Issuance. The Warrant Stock is duly authorized and reserved for issuance, and when issued, sold and delivered in accordance with the terms of this Warrant will be duly and validly issued and fully paid.
(c) No Conflict. The execution and delivery of this Warrant do not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of, breach or default (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit, under, any provision of the memorandum and articles of association of the Company or any material agreement attached as an exhibit to the Companys SEC Documents (as defined in the Purchase Agreement), or any judgment, order, decree, statute, law, ordinance, rule, listing requirement or regulation applicable to the Company, its properties or assets, which conflict, violation, default or right would have a material adverse effect on the business, properties, prospects, financial condition or operations of the Company.
20. Counterparts. This Warrant may be executed in counterparts, and each such counterpart shall be deemed an original for all purposes.
Signature Pages Follow
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IN WITNESS WHEREOF, the parties have executed this Warrant to Purchase American Depositary Shares as of the date first above written.
INSIGNIA SOLUTIONS PLC
By: | ||||
Name: Roger Friedberger | ||||
Title: Company Secretary |
Address:
41300 Christy Street
Fremont, CA ###-###-####
Attention: Company Secretary
41300 Christy Street
Fremont, CA ###-###-####
Attention: Company Secretary
Fax Number: (510)  ###-###-####
AGREED TO AND ACCEPTED BY:
[Warrantholder]
By: | ||||
Name: | ||||
(print) | ||||
Title: | ||||
Address:
c/o Abstract Securities Ltd.
Queens House
34 Wellington Street
Leeds, UK
LS1 2DE
Tel: +44783 181 2812
Queens House
34 Wellington Street
Leeds, UK
LS1 2DE
Tel: +44783 181 2812
Fax Number: | ||||
SIGNATURE PAGE TO WARRANT TO PURCHASE
AMERICAN DEPOSITARY SHARES
AMERICAN DEPOSITARY SHARES
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EXHIBIT A
PURCHASE/EXERCISE FORM
To: Insignia Solutions plc
Dated: | ||||
The undersigned, pursuant to the provisions set forth in the attached Warrant No. 2 , hereby irrevocably elects to purchase American Depositary Shares covered by such Warrant and herewith makes payment of $ , representing the full purchase price for such shares at the price per share provided for in such Warrant.
The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 18 of the Warrant, including subsection (f) with regard to the number of shares held by the undersigned, and by its signature below hereby makes such representations and warranties to the Company. The undersigned has delivered currently herewith a representation letter, signed by the undersigned, stating the number of shares of the Company held by the undersigned immediately prior to the exercise of this Warrant and representing that the exercise of the Warrant (or portion hereof) would not violate the provision of Section 18(f). Defined terms contained in such representations and warranties shall have the meanings assigned to them in the Warrant.
Signature: | ||||
Name (print): | ||||
Title (if applicable): | ||||
Company (if applicable): | ||||
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EXHIBIT B
ASSIGNMENT FORM
FOR VALUE RECEIVED, hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with respect to the number of American Depositary Shares covered thereby set forth below, unto:
Name of Assignee | Address/Fax Number | No. of Shares |
Dated: | ||||
Signature: | ||||
Witness: | ||||
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