Prepared by MERRILL CORPORATION




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Exhibit 10.20  


THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 


 
 

WARRANT TO PURCHASE STOCK    
  



	Corporation:	 	SEEBEYOND TECHNOLOGY CORPORATION,

a Delaware Corporation
	Number of Shares:	 	25,000
	Class of Stock:	 	Common
	Initial Exercise Price:	 	$4.39 per share
	Issue Date:	 	October 31, 2001
	Expiration Date:	 	October 31, 2004





        THIS
WARRANT CERTIFIES THAT, in consideration of the payment of $1.00 and for other good and valuable consideration, COMERICA BANK CALIFORNIA, or its assignee ("Holder") is entitled to
purchase the number of fully paid and nonassessable shares of the class of securities (the "Shares") of the corporation (the "Company") at the initial exercise price per Share (the "Warrant Price")
all as set forth above and as adjusted pursuant to Article 2 of this warrant, subject to the provisions and upon the terms and conditions set forth in this warrant. 


ARTICLE
1.    EXERCISE.    



        1.1    Method of Exercise.    Holder may exercise this warrant by delivering this warrant and a duly executed Notice
of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth in Section 1.2, Holder
shall also deliver to the Company a check for the aggregate Warrant Price for the Shares being purchased. 


        1.2    Conversion Right.    In lieu of exercising this warrant as specified in Section 1.1, Holder may from
time to time convert this warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares or other securities otherwise issuable
upon exercise of this warrant minus the aggregate Warrant Price of such Shares by (b) the fair market value of one Share. The fair market value of the Shares shall be determined pursuant to
Section 1.3. 


        1.3    Fair Market Value.    If the Shares are traded regularly in a public market, the fair market value of the
Shares shall be the average closing price of the Shares (or the closing price of the Company's stock into which the Shares are convertible) reported for the ten (10) business days immediately
before Holder delivers its Notice of Exercise to the Company. If the Shares are not regularly traded in a public market, the Board of Directors of the Company shall determine fair market value in its
reasonable good faith judgment. The foregoing notwithstanding, if Holder advises the Board of Directors in writing that Holder disagrees with such determination, then the Company and Holder shall
promptly agree upon a reputable investment banking firm to undertake such valuation. If the valuation of such investment banking firm is greater than that determined by the Board of Directors, then
all fees and expenses of such investment banking firm shall be paid by the Company. In all other circumstances, such fees and expenses shall be paid by Holder. 


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        1.4    Delivery of Certificate and New Warrant.    Promptly after Holder exercises or converts this warrant the
Company shall deliver to Holder certificates for the Shares acquired and, if this warrant has not been fully exercised or converted and has not expired, a new warrant representing the Shares not so
acquired. 


        1.5    Replacement of Warrants.    On 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, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the
case of mutilation, on surrender and cancellation of this warrant, the Company at its expense shall execute and deliver, in lieu of this warrant, a new warrant of like tenor. 


        1.6    Repurchase on Sale, Merger, or Consolidation of the Company.    




        1.6.1    "Acquisition"    For the purpose of this warrant, "Acquisition" means any sale, license, or other disposition
of all or substantially all of the assets (including ??? property) of the Company, or any reorganization, consolidation, or merger of the Company where the holders of the Company's securities before
the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction. 


        1.6.2    Assumption of Warrant.    If upon the closing of any Acquisition the successor entity assumes the obligations
of this warrant, then this warrant shall be exercisable for the same securities, cash, and property as would be payable for the Shares issuable upon exercise of the unexercised portion of this warrant
as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price shall be adjusted accordingly. The Company shall use reasonable efforts to cause the
surviving corporation to assume the obligations of this warrant. 


        1.6.3    Nonassumption.    If upon the closing of any Acquisition the successor entity does not assume the obligations
of this warrant and Holder has not otherwise exercised this warrant in full, then Holder shall have the option either to (a) deem this warrant to have been automatically converted pursuant to
Section 1.2 and thereafter Holder shall participate in the Acquisition on the same terms as other holders of the same class of securities of the Company; or (b) require the Company to
purchase this warrant for cash upon the closing of the Acquisition for an amount per Share equal to three (3) times the Warrant Price. 





ARTICLE
2.    ADJUSTMENTS TO THE SHARES.    


        2.1    Stock, Dividends, Splits, Etc.    If the Company declares or pays a dividend on its common stock payable in
common stock, or other securities, subdivides the outstanding common stock into a greater amount of common stock, then upon exercise of this warrant, for each Share acquired, Holder shall receive,
without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. 


        2.2    Reclassification, Exchange or Substitution.    Upon any reclassification, exchange, substitution, or other
event that results in a change of the number and/or class of the securities issuable upon exercise or
conversion of this warrant, Holder shall be entitled to receive, upon exercise or conversion of this warrant, the number and kind of securities and property that Holder would have received for the
Shares if this warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. Such an event shall include any automatic conversion of the outstanding or
issuable securities of the Company of the same class or series as the Shares to common stock pursuant to the terms of the Company's Certificate of Incorporation upon the closing of a registered public
offering of the Company's common stock. The Company or its successor shall promptly issue to Holder a new warrant for such new securities or other property. The new warrant shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this 


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Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new warrant. The provisions of this
Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events. 


        2.3    No Impairments.    The Company shall not, by amendment of its Certificate of Incorporation or through a
reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed under this warrant by the Company, but shall at all times in good faith assist in carrying out all the provisions of this Article 2 and in taking all such
action as may be necessary or appropriate to protect Holder's rights under this Article against impairment. If the Company takes any action affecting the Shares or its common stock other than as
described above that adversely affects Holder's rights under this warrant, the Warrant Price shall be adjusted downward and the number of Shares issuable upon exercise of this warrant shall be
adjusted upward in such a manner that the aggregate Warrant Price of this warrant is unchanged. 


        2.4    Certificate as to Adjustments.    Upon each adjustment of the Warrant Price, the Company at its expense shall
promptly compute such adjustment and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company
shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 


ARTICLE
3.    REPRESENTATIONS AND COVENANTS OF THE COMPANY.    


        3.1    Representations and Warranties.    The Company hereby represents and warrants to the Holder as follows: 



        (a)  The
initial Warrant Price referenced on the first page of this warrant is not greater than the fair market value of the Shares as of the date of this warrant. 


        (b)  All
Shares which may be issued upon the exercise of the purchase right represented by this warrant, and all securities, if any, issuable upon conversion of the Shares,
shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under
applicable federal and state securities laws. 




        3.2    Notice of Certain Events.    If the Company proposes at any time (a) to declare any dividend or
distribution upon its common stock, whether in cash, property, stock or other securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to the holders of any
class or series of its stock any additional shares of stock of any class or series or other rights; (c) to effect any reclassification or recapitalization of common stock; or (d) to
merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up, then, in connection with each
such event, the Company shall give Holder (1) at least 20 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and
specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; and
(2) in the case of the matters referred to in (c) and (d) above at least 20 days prior written notice of the date when the same will take place (and specifying the date on which the
holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event). 



        3.3    Information Rights.    So long as the Holder holds this warrant and/or any of the Shares, the Company shall
deliver to the Holder (a) promptly after mailing, copies of all communiques to the shareholders of the Company, (b) within ninety (90) days after the end of each fiscal year of the
Company, the annual audited financial statements of the Company certified by independent public 


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accountants of recognized standing and (c) within forty-five (45) days after the end of each of the first three quarters of each fiscal year, the Company's quarterly, unaudited
financial statements. 


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ARTICLE 4.    MISCELLANEOUS.    


        4.1    Term.    This warrant is exercisable in whole or in part, at any time and from time to time on or before the
Expiration Date set forth above. If this warrant has not been exercised prior to the Expiration Date, this warrant shall be deemed to have been automatically exercised on the Expiration Date by
"cashless" conversion pursuant to Section 1.2. 


        4.2    Legends.    This warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion
of the Shares, is any) shall be imprinted with a legend in substantially the following form: 


THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR
PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 


        4.3  Compliance with Securities Laws on Transfer.    This warrant and the Shares issuable upon exercise of this
warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal
and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the
Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder or if there is no material question as to the availability of current
information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker represents that it has complied with
Rule 144(f), and the Company is provided with a copy of Holder's notice of proposed sale. 


        4.4  Transfers Procedure.    Subject to the provisions of Section 4.3, Holder may transfer all or part of
this warrant or the Shares issuable upon exercise of this warrant (or the securities issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company notice of the
portion of the warrant being transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this warrant to the Company for reissuance to the
transferee(s) (and Holder, if applicable); provided, however, that Holder may transfer all or part of
this warrant to its affiliates, including, without limitation, Holder's parent company, at any time without notice to the Company, and such affiliate shall then be entitled to all the rights of Holder
under this warrant and
any related agreements, and the Company shall cooperate fully in ensuring that any stock issued upon exercise of this warrant is issued in the name of the affiliate that exercises the warrant. The
terms and conditions of this warrant shall insure to the benefit of, and be binding upon, the Company and the holders hereof and their respective permitted successors and assigns. Unless the Company
is filing financial information with the SEC pursuant to the Securities Exchange Act of 1934, the Company shall have the right to refuse to transfer any portion of this warrant to any person who
directly competes with the Company. 


        4.5  Notices.    All notices and other communications from the Company to the Holder, or vice versa, shall be deemed
delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company or the 


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Holder, as the case may be, in writing by the Company or such Holder from time to time. All notices to the Holder shall be addressed as follows: 



	

 	
 	

Comerica Bank-California

Attn: Controllers Department

P.O. Box 97991

Los Angeles, CA 90009-2991	
 	

 
	

 	
 	

 	
 	

 
	

with a copy to:	
 	

 	
 	

 
	

 	
 	

Comerica Bank-California

Attn: Warrant Administrator

Special Markets Division

P.O. Box 7279

San Francisco, CA 94120-7279	
 	

 
	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

 





        4.6  Waiver.    This warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 


        4.7  Attorney's Fees.    In the event of any dispute between the parties concerning the terms and provisions of this
warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys' fees. 


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        4.8  Governing Law.    This warrant shall be governed by and construed in accordance with the laws of the State of
California, without giving effect to its principles regarding conflicts of law. 



	

 	
 	

SEEBEYOND TECHNOLOGY CORPORATION
	



 	

 	



By:	

 	



/s/  BARRY J. PLAGA      

	



 	

 	



Name:	

 	



Barry J. Plaga

	



 	

 	



Title:	

 	



Senior VP of Finance & CFO

	



 	

 	



 	

 	



 
	



 	

 	



By:	

 	





	



 	

 	



Name:	

 	





	



 	

 	



Title:	

 	










Authorized
signatories under Corporate Resolutions to Borrow or an authorized signer(s) under a resolution covering warrants must sign the warrant. 


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APPENDIX I



NOTICE OF EXERCISE  


        1.    The
undersigned hereby elects to purchase                                 shares of the
Common stock of SEEBEYOND TECHNOLOGY CORPORATION pursuant to the terms of the attached
warrant, and tenders herewith payment of the purchase price of such shares in full. 


        1.    The
undersigned hereby elects to convert the attached warrant into shares in the manner specified in the warrant. This conversion is exercised with respect to
                                of the shares covered by the warrant. 


        [Strike paragraph that does not apply.]


        2.    Please
issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below: 




Comerica
Bank-California

Attn: Controllers Department

P.O. Box 92991

Los Angeles, CA 90009

Or Registered Assignee 





        3.    The
undersigned represents it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or
distribution thereof except in compliance with applicable securities laws. 


COMERICA BANK-CALIFORNIA or Registered Assignee 





(Signature)






(Date)










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WARRANT TO PURCHASE STOCK