FINAL
EXHIBIT 10.37
Cancellation of Warrants Agreement
This CANCELLATION OF WARRANTS AGREEMENT is made as of the 25 day of
July, 2002, by and among RED BEND LTD., an Israeli company (Reg. No.
51-260506-4) with principal offices at 00 Xxxx Xx., Xxxx Xx'xxxx, Xxxxxx (the
"COMPANY"), -AND- entities of the CARMEL VENTURES FUNDS and entities of the FBR
INFINITY II FUNDS as listed on Exhibit A hereto, XXXX XXXXX and BACKWEB
TECHNOLOGIES LTD. (each an "INVESTOR" and collectively, the "INVESTORS"), on the
other part.
WHEREAS, the Company, Xxxx Xxxxx, Xxxxxx Xxxxx, Xxxxx B.V. and the
Investors, have entered into a Share Purchase and Shareholders Rights Agreement,
dated October 10, 2000 (the "SPA"); and
WHEREAS, the Company wishes to induce certain shareholders of the
Company to participate in an additional investment of US $1,700,000 in the
Company (the "ADDITIONAL INVESTMENT") and in the framework of the Additional
Investment the parties hereto have agreed to rescind the Warrants (as such term
is defined under the SPA).
NOW, THEREFORE, the parties agree as follows:
1. Any capitalized term used herein not otherwise defined, shall have the
meaning ascribed to it in the SPA.
2. The First Warrant and the Second Warrant issued to the Investors under
section 3.1 to the SPA are hereby rescinded. Each of the Series B
Warrant Certificates issued to the Investors in accordance with section
2.2.1 (g) to the SPA is hereby cancelled and each Investor agrees to
surrender to the Company such certificate.
3. Each of the Investors hereby unconditionally and irrevocably waives, as
of the closing of the Additional Investment, all rights under or
pursuant to or in connection with the First Warrants and the Second
Warrants and these rights shall be as of the closing of the Additional
Investment forever exhausted.
[Signature page follows]
IN WITNESS WHEREOF, the parties have executed this Cancellation of Warrants
Agreement, as of this ____ day of July 2002.
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Red Bend Ltd.
By:
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Title:
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THE INVESTORS:
/s/ XXXXXXX XXXXXX /s/ XXXXXXX XXXXXX
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Carmel Software Fund (Israel) LP Carmel Software Fund (Cayman) LP
By: Carmel V.C. Limited By: Carmel Software Limited
By: Carmel Software L.P.
By: Xxxxxxx Xxxxxx By: Xxxxxxx Xxxxxx
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Title: Title:
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/s/ XXXXXXX XXXXXX /S/ XXXXXXX XXXXXX
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Carmel Software Fund (Delaware) LP Carmel VC Ltd. (for Siemens Venture
Capital GmbH)
By: Carmel Software Limited
By: Carmel Software L.P.
By: Xxxxxxx Xxxxxx By: Xxxxxxx Xxxxxx
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Title: Title:
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/s/ XXXXXXX XXXXXX
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Carmel Software Fund GbR
By: Carmel Software Limited
By: Carmel Software L.P.
By: Xxxxxxx Xxxxxx
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Title:
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/s/ XXX XXXXXX
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XXXX XXXXX Backweb Technologies Ltd.
By: Xxx Xxxxxx
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Title: CEO
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FBR Infinity II Ventures (Israel) LP FBR Infinity II Ventures LP
By: By:
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Title: Title:
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EXHIBIT A
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Carmel Software Fund (Israel) LP
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Carmel Software Fund (Cayman) LP
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Carmel Software Fund (Delaware) LP
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Carmel VC Ltd. (for Siemens Venture Capital GmbH)
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Carmel Software Fund GbR
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FBR Infinity II Ventures (Israel) LP
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FBR Infinity II Ventures LP
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