SERIES B PREFERRED STOCK REPURCHASE AGREEMENT
EXHIBIT
10.02
This
Settlement Agreement (this “Agreement”)
is
made and entered into as of June 4, 2007 (the “Effective
Date”)
by and
between Insignia Solutions plc, a public limited company incorporated under
the
laws of England and Wales (the “Company”),
Insignia Solutions Inc., a company incorporated under the laws of Delaware
(the
“Issuer”)
and
those persons and entities listed on Exhibit A hereto (the “Investors”).
The
Company, the Issuer and the Investors are collectively referred to as
“Parties”.
WHEREAS,
each Investor purchased shares of the Issuer’s Series B Preferred Stock, stated
value of $100 per share (the “Series
B Stock”)
pursuant
to that certain Securities Subscription Agreement between the Company, the
Issuer, the Investors and certain other investors dated December 29, 2005,
as
amended (the “Subscription
Agreement”),
and
in connection therewith entered into that certain Registration Rights Agreement
between the Company, the Investors and certain other investors dated December
29, 2005, as amended (the “Rights
Agreement”)
and a
certain Warrant to purchase American depositary shares of the Company issued
by
the Company to each Investor on or about December 29, 2005, as amended (each
such warrant, a “Warrant”);
WHEREAS,
the Issuer wishes to repurchase certain shares of Series B Stock held by the
Investors, and the Investors concurrently desire to have the Issuer repurchase
such shares of Series B Stock;
NOW,
THEREFORE, in consideration of the above premises and for good and valuable
consideration, the sufficiency and receipt of which is hereby acknowledged,
the
Parties hereto agree as follows:
1. Repurchase
of Series B Stock.
Each
Investor hereby severally agrees to sell to the Company, and the Issuer hereby
agrees to repurchase, the number of shares of Series B Stock set forth besides
each respective Investor’s name in the column entitled “Shares of Series B
Preferred Stock Repurchased” on Exhibit
A
hereto
(the “Repurchased
Shares”)
at a
price of US$128.00 per share (the “Repurchase
Price”,
payable by wire transfer of funds to the XXXX account of Grushko & Xxxxxxx
P.C. Such repurchase shall be effective, with respect to each Investor,
immediately upon receipt of such funds in such account (the “Effective
Time”),
and
from and after such time, the Repurchased Shares shall no longer be outstanding.
Each Investor agrees that payment of the Repurchase Price shall be deemed to
satisfy in full any and all rights that the Invesor may have to accrued
dividends with respect to the Repurchased Shares and to liquidated damages
pursuant to Section 2(e) of the Rights Agreement (as amended). Each Investor
agrees that promptly after the Effective Time, it will return the certificates
evidencing the Repurchased Shares to the Issuer by federal express or other
overnight courier to:
Insignia
Solutions, Inc.
00
Xxxx
Xxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxx,
Xxxxxxxxxx 00000
Attention:
Xxxxxx Xxxx
2. Cancellation
of Warrants.
The
Company and each undersigned Investor acknowledge and agree that, from and
after
the Effective Time, each Warrant issued to such Investor shall be null and
void
and of no further force and effect whatsoever. Each Investor agrees that
promptly after the Effective Time, it will return the Warrants to the Issuer
by
federal express or other overnight courier to the address set forth in Section
1.
3. No
Rights to Series B Stock or Warrants.
Each
Investor hereby acknowledges and agrees that from and after the Effective Time,
such Investor will have no further rights with respect to his/her/its respective
Repurchased Shares and Warrant
4. General
Release of Claims.
For and
in consideration of the repurchase by the Issuer
of the
Repurchased Shares, each
Investor hereby waives, releases, and forever discharges the Company and the
Issuer and each of their respective past and present employees, officers,
shareholders, directors, owners, agents, attorneys, predecessors and successors
(in each case in their capacity as such), , and the Company and the Issuer
hereby waive, release and forever discharge each of the Investors and each
of
their respective past and present employees, officers, shareholders, directors,
owners, agents, attorneys, predecessors and successors (in
each
case in their capacity as such),
from
any and all claims, charges, complaints, rights, demands, actions, or causes
of
action, whether based in contract or tort, which such Investor, the Company
or
the Issuer has, may have or claims to have had against any of them, whether
known or unknown, including, without limitation, any rights to any liquidated
damages, accrued dividends or other amounts pursuant to the Subscription
Agreement, the Rights Agreement or the Warrants, from the beginning of time
to
the present. Each Investor, the Company and the Issuer further agree not to
initiate any action, including any legal, administrative, or other proceeding
to
assert any such claims; provided,
however,
that
nothing in this Section shall waive or release any rights any Party hereto
may
have to seek enforcement of, or make a claim for breach of, the covenants,
representations, promises and provisions of this Agreement.
5. California
Civil Code Section 1542 Waiver.
Each
Investor, the Issuer and the Company hereby acknowledge that it is familiar
with
the provisions of Section 1542 of the Civil Code of the State of California,
which provides that:
A
GENERAL
RELEASE DOES NOT EXTEND TO THE CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.
Each
Investor, the Company and the Issuer hereby expressly, knowingly, and
intentionally waives and relinquishes any and all rights that it has against
the
other party under Section 1542, and hereby assumes full responsibility for
any
injuries, damages or losses that it may incur as a result of the execution
of
this Agreement, the Subscription Agreement and the transactions provided for
therein.
7. No
Assignment of Released Claims. Each
Investor represents and warrants that it has not assigned or conveyed any
claims, which it has or purports to have against the Releasees to any other
person.
8. Confidentiality.
The
Investors each agree not to reveal the terms of the Agreement, nor the
consideration for settlement set forth in the Agreement, to any person, other
than counsel, except for tax purposes or to fulfill corporate financial
reporting obligations, without the prior written consent of the Issuer or the
Company. Any breach of this confidentiality provision shall be deemed a material
breach of this Agreement.
9. Binding
Agreement.
The
Parties agree that this Agreement shall be binding on the Parties and their
predecessors, successors, parent companies, subsidiaries, affiliates, employees,
officers, shareholders, directors, benefit plans (and fiduciaries thereof),
and
agents.
2
10. Final
Agreement and Modification.
This
Agreement and all exhibits hereto contain all of the terms, provisions, and
understandings between and the Parties in connection with the subject matter
hereof, and are meant to be a full and final agreement between them as to said
subject matter. No modification of this Agreement shall be effective except
if
in writing and signed by all Parties.
11. Governing
Law.
This
Agreement shall be governed by and interpreted under the laws of the State
of
California, without regard to conflict of laws.
12. Litigation
Expense.
If any
Party to this Agreement shall bring an action against the other Party hereto
by
reason of the breach of any covenant, warranty, representation, obligation
or
condition imposed by this Agreement, or otherwise relating to or arising out
of
this Agreement, whether for declaratory or other relief, the prevailing party
in
said action shall be entitled to said party’s costs of suit and reasonable
attorneys’ fees.
13. Execution
in Counterparts.
This
Agreement may be executed in counterparts, each of which shall be deemed an
original, and all such counterparts collectively shall constitute but one and
the same Agreement. This Agreement may be executed by facsimile, and a facsimile
signature shall have the same force and effect as an original signature on
this
document.
14. Severability.
In the
event that any provision of this Agreement, or the application of any such
provision, is held by a tribunal of competent jurisdiction to be contrary to
law, the remaining provisions of this Agreement will remain in full force and
effect, and this Agreement will be interpreted as if said invalid provision
was
omitted.
15. Authority
of Signatory.
The
Parties each represent and warrant that each Party’s signatory has full
authority to enter into this Agreement and to bind his respective
entity
16. Effectiveness.
The
Issuer agrees to make payment to the Investors party hereto as provided in
Section 1 hereof not later than five business days following execution and
delivery of this Agreement by such Investors.
[Signature
Page Follows]
3
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
COMPANY:
By:
/s/
Xxxxxx
Xxxx
Name:
Xxxxxx
Xxxx
Title:
CFO
ISSUER:
INSIGNIA
SOLUTIONS, INC.
By:
/s/
Xxxxxx
Xxxx
Name:
Xxxxxx
Xxxx
Title:
CFO
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
ALPHA
CAPITAL AG.
By:
/s/
Xxxxxx
Xxxxxxxx
Name:
Xxxxxx
Xxxxxxxx
Title:
Director
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
XXXXX
INTERNATIONAL LLC
By:
/s/
Xxxxxxx
Xxxxx
Name:
Xxxxxxx
Xxxxx
Title:
Officer
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
DKR
SOUNDSHORE OASIS HOLDING
FUND
LTD.
By:
DKR Oasis Management Company LP,
its
investment manager
By:
/s/
Xxxxxxx
Xxxxxx
Name:
Xxxxxxx
Xxxxxx
Title:
Authorized
Signatory
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
PLATINUM
LONG TERM GROWTH I, L.L.C.
By:
/s/
Xxxx
Xxxxxxxxx
Name:
Xxxx
Xxxxxxxxx
Title:
General
Manager
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
WHALEHAVEN
CAPITAL FUND LIMITED
By:
/s/
Xxxxxx
Xxxxxxx
Name:
Xxxxxx
Xxxxxxx
Title:
Secretary
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
MONARCH
CAPITAL FUND LTD.
By:
/s/
Illegible
Name:
Navigator Management
Ltd.
Title:
Director
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
CMS
CAPITAL
By:
/s/
Xxxxxx
Xxxxx
Name:
Xxxxxx
Xxxxx
Title:
Director
IN
WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as
of the Effective Date.
INVESTOR:
/s/
Xxxx
Xxxxxxxx
Xxxx
Xxxxxxxx
EXHIBIT
A
Investors
|
Investor
|
Shares
of
Series
B
Preferred
Stock
Originally
Purchased
|
Shares
of
Series
B
Preferred
Stock
Held
as of
Effective
Date
|
Shares
of
Series
B
Preferred
Stock
Repurchased
|
Warrant
Shares
to
be
Cancelled
|
|||||||||
|
Alpha
Capital ag.
Xxxxxxxx
0
Xxxxxxxxxxx
0000
Xxxxx
Xxxxxxxxxxxxx
|
5,000
|
5,000
|
5,000
|
2,300,000
|
|||||||||
|
Xxxxx
International LLC
Xxxxx
00 Xxxxxxxxxxxx Xxxxxxxx
Xxxxxxx
Xxxxx Xxxxx Bank Piso 00
Xxxxxx
Xxxx, Xxxxxx (Xxxxxxxx of)
|
3,500
|
3,500
|
3,500
|
1,610,000
|
|||||||||
|
DKR
Soundshore Oasis Holding Fund LTD.
0000
Xxxx Xxxx Xxxxxx, 0xx
Xxxxx
Xxxxxxxx,
XX 00000
|
3,000
|
3,000
|
3,000
|
1,180,000
|
|||||||||
|
Platinum
Long Term Growth I, LLC
000
Xxxx 00xx
Xxxxxx, 00xx
Xxxxx
Xxx
Xxxx, XX 00000
|
2,500
|
2,500
|
2,500
|
1,150,000
|
|||||||||
|
Whalehaven
Capital Fund Limited
c/o
Consolidated Group of Companies
00
Xxx-Xx-Xxxxx Xxxx
Xxx-Xx-Xxxxx
Place, 3rd
Floor
Xxxxxxxx
HMJX
Bermuda
|
3,000
|
3,000
|
3,000
|
1,380,000
|
|||||||||
|
Monarch
Capital Fund Ltd.
Xxxxxx
Xxxxx, 0xx
Xxxxx
Xxxx
Xxxx, Xxxxxxx
Xxxxxxx
Xxxxxx Xxxxxxx
|
1,500
|
1,500
|
1,500
|
690,000
|
|||||||||
|
CMS
Capital
0000
Xxx Xxxx Xxxx., #000
Xxxxxxxx
Xxxx, XX 00000
|
750
|
750
|
750
|
345,000
|
|||||||||
|
Xxxx
Xxxxxxxx
0
Xxxxxxx Xxxxx
Xxxxxxx,
XX 00000
|
500
|
500
|
500
|
230,000
|
|||||||||
