FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT
Exhibit
10.1
FIRST
AMENDMENT TO REGISTRATION RIGHTS AGREEMENT
AMENDMENT
DATED AS OF APRIL 10, 2006 TO REGISTRATION RIGHTS AGREEMENT
(the
“Agreement”),
dated
as of December 29, 2005 by and among INSIGNIA
SOLUTIONS PLC,
a
public limited company incorporated under the laws of England and Wales
(registered number: 1961960) (the “Company”),
and
the Buyers identified on the signature page hereto (the “Buyers”).
Capitalized terms used herein and not otherwise defined herein are defined
in
the Agreement.
WHEREAS,
the
Company and the Insignia Solutions. Inc. (the “Issuer”)
have
entered into the Agreement pursuant to which the Company has agreed to register
American depository shares (each an “ADS”
and
collectively, the “ADSs”)
issuable on exchange of Series B Preferred Stock, stated value of $100 per
share (the “Preferred
Stock”)
of the
Issuer, and on exercise of certain warrants;
WHEREAS,
the
Buyers identified on the signature page hereto own shares of Preferred Stock
representing at least 70% in interest of the outstanding Preferred Stock of
the
Issuer; and
WHEREAS,
the
Company, the Issuer and the Buyers now wish to amend the Agreement as provided
herein:
NOW
THEREFORE,
the
Issuer, the Company and the Buyers hereby agree as follows:
1. AMENDMENT
TO THE AGREEMENT
Section
2(e) of the Agreement is hereby amended to read as follows:
Monthly
Liquidated Damages.
If the
Registration Statement required to be filed pursuant to Section 2(a) of this
Agreement (i) has not been filed with the SEC on or prior to the Filing
Date, (ii) has not been declared effective by the SEC on or prior to the
Effective Date or (iii) is not available for resales of Registrable
Securities at any time during the Registration Period, the Company will make
pro
rata payments to each Investor, as liquidated damages and not as a penalty,
a
number of ADSs having an aggregate Stated Value equal to 2.0% of the sum of
(1) the aggregate purchase price paid by the Investors for the outstanding
Preferred Stock. Exchange Shares and Warrant Shares then held by the Investors
and (2) the aggregate exercise price of the Warrant Shares then issuable
upon exercise of outstanding Warrants then held by the Investors, for each
monthly anniversary following the dote by which such Registration Statement
should have been filed or have been declared effective by the SEC as applicable.
Such pro rata payments shall cease to accrue immediately at such time as the
Registration Statement is filed with the SEC for purposes of payments due under
clause (i) of the immediately preceding sentence or is declared effective
by the SEC with respect to payments due under clause (ii) of the
immediately preceding sentence, as applicable. Such payments shall constitute
the Investors’ sole monetary remedy for such events. As used herein, the term
“Stated
Value”
means
$0.25 per ADS. Notwithstanding the foregoing, (1) in no event shall the
total number of ADSs issuable pursuant to this Section 2(e) exceed 30% of
the total number of Exchange Shares issuable upon exchange of the Preferred
Stock. and (2) the Company may elect to deliver cash, in an amount equal to
the Stated Value of ADSs deliverable under this Section 2(e) multiplied by
the number of ADSs so deliverable, in lieu of delivering such ADSs (and in
full
satisfaction of its obligation to issue such ADSs).
2. MISCELLANEOUS
Subject
to the amendment and acknowledgements herein provided, the Agreement shall
remain in full force and effect. Except as expressly set forth herein, this
Amendment shall not be deemed to be a waiver, amendment or modification of
any
provisions of any Agreement or of any right, power or remedy of the Buyers,
or
constitute a waiver of any provision of the Agreement (except to the extent
herein set forth), or any other document, instrument and/or agreement executed
or delivered in connection therewith, in each ease whether arising before or
after the date hereof or as a result of performance hereunder or thereunder.
Except as set forth herein, the Buyers reserve all rights, remedies, powers,
or
privileges available under the transaction documents, at law or otherwise.
This
Amendment shall not constitute a novation or satisfaction and accord of the
Agreement or any other document, instrument and/or agreement executed or
delivered in connection therewith.
3. COUNTERPARTS
This
amendment may be executed in two or more identical counterparts, all of which
shall be considered one and the same document and shall become effective when
counterparts have been signed by each party and delivered to the other party;
provided
that a
facsimile signature shall be considered due execution and shall be binding
upon
the signatory thereto with the same force and effect as if the signature were
an
original, not a facsimile signature.
IN
WITNESS WHEREOF, the Company and the Buyers have caused this Amendment to the
Registration Rights Agreement to be duly executed as of the date first written
above.
THE
COMPANY:
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By:
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Name:
Xxxx
XxXxxxxx
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Title:
President
and Chief Executive Officer
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BUYER:
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Name
of Investor (Print)
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By:
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Name:
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Title:
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