Document:

exv10w92

 

Exhibit 10.92

REGISTRATION RIGHTS AGREEMENT

     REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of
February 10, 2005, by and between
INSIGNIA SOLUTIONS PLC, a company incorporated under the laws of England and Wales (the “Company”),
and FUSION CAPITAL FUND II, LLC (together with it permitted assigns, the “Buyer”). Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in
the Securities Subscription Agreement by and between the parties hereto dated as of the date hereof
(as amended, restated, supplemented or otherwise modified from time to time, the “Subscription
Agreement”).

WHEREAS:

     A. The Company has agreed, upon the terms and subject to the conditions of the Subscription
Agreement, to issue to the Buyer (i) up to Twelve Million Dollars ($12,000,000) of the Company’s
Ordinary Shares, 20 UK pence per share nominal value, represented by American Depository Shares
(the “Common Stock”) (the “Purchase Shares”), and (ii) up to four million shares of Common Stock
issuable upon exercise of the Warrants (the “Warrant
Shares”); and

     B. To induce the Buyer to enter into the Subscription Agreement, the Company has agreed to
provide certain registration rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the “1933 Act”), and
applicable state securities laws.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Buyer hereby agree as follows:

     1. DEFINITIONS.

          As used in this Agreement, the following terms shall have the following meanings:

     
     a. “Investor” means the Buyer, any transferee or assignee thereof to whom a Buyer assigns its
rights under this Agreement and who agrees to become bound by the provisions of this Agreement in
accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee
assigns its rights under this Agreement and who agrees to become bound by the provisions of this
Agreement in accordance with Section 9.

         
 b. “Person” means any person or entity including any corporation, a limited liability company,
an association, a partnership, an organization, a business, an individual, a governmental or
political subdivision thereof or a governmental agency.

        
  c. “Register,” “registered,” and “registration” refer to a registration effected by preparing
and filing one or more registration statements of the Company in compliance with the 1933 Act and
pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on
a continuous basis (“Rule 415”), and the declaration or ordering of effectiveness of such
registration statement(s) by the United States Securities and Exchange Commission (the “SEC”).

 

 

       
   d. “Registrable Securities” means the Purchase Shares which have been, or which may from time
to time be, issued or issuable upon purchases of the Available Amount under the Subscription
Agreement (without regard to any limitation or restriction on purchases) the Warrant Shares
issuable upon exercise of the Warrants and any shares of capital stock issued or issuable with
respect to the Purchase Shares, the Warrant Shares or the Subscription Agreement as a result of any
stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without
regard to any limitation on purchases under the Subscription Agreement.

       
   e. “Registration Statement” means the registration statement of the Company covering only the
sale of the Registrable Securities.

     2. REGISTRATION.

          a. Mandatory Registration. The Company shall on or before March 31, 2005 file with
the SEC the Registration Statement. The Registration Statement shall register only the Registrable
Securities and no other securities of the Company. The Investor and its counsel shall have a
reasonable opportunity to review and comment upon such registration statement or amendment to such
registration statement and any related prospectus prior to its filing with the SEC. Investor shall
furnish all information reasonably requested by the Company for inclusion therein. The Company
shall use its reasonable best efforts to have the Registration Statement or amendment declared
effective by the SEC at the earliest possible date. The Company shall use reasonable best efforts
to keep the Registration Statement effective pursuant to Rule 415 promulgated under the 1933 Act
and available for sales of all of the Registrable Securities at all times until the earlier of (i)
the date as of which the Investor may sell all of the Registrable Securities without restriction
pursuant to Rule 144(k) promulgated under the 1933 Act (or successor thereto) or (ii) the date on
which (A) the Investor shall have sold all the Registrable Securities and no Available Amount
remains under the Subscription Agreement (the “Registration Period”). The Registration Statement
(including any amendments or supplements thereto and prospectuses contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein, or necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading.

          b. Rule 424 Prospectus. The Company shall, as required by applicable securities
regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the 1933
Act, the prospectus and prospectus supplements, if any, to be used in connection with sales of the
Registrable Securities under the Registration Statement. The Investor and its counsel shall have a
reasonable opportunity to review and comment upon such prospectus prior to its filing with the SEC.
The Investor shall use its reasonable best efforts to comment upon such prospectus within one (1)
Trading Day from the date the Investor receives the final version of such prospectus.

          c. 
Sufficient Number of Shares Registered. In the event the number of shares
available under the Registration Statement is insufficient to cover all of the Registrable
Securities, the Company shall amend the Registration Statement or file a new registration statement
(a “New Registration Statement”), so as to cover all of such Registrable Securities as soon as
practicable, but in any event not later than ten (10) Trading Days after the necessity therefor
arises. The Company shall use it reasonable best efforts to cause such amendment and/or New
Registration Statement to become effective as soon as practicable following the filing thereof.

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     3. RELATED OBLIGATIONS.

     With respect to the Registration Statement and whenever any Registrable Securities are to be
registered pursuant to Section 2(b) including on any New Registration Statement, the Company shall
use its reasonable best efforts to effect the registration of the Registrable Securities in
accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall
have the following obligations:

          a. The Company shall prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to any registration statement and the prospectus used in connection
with such registration statement, which prospectus is to be filed pursuant to Rule 424 promulgated
under the 1933 Act, as may be necessary to keep the Registration Statement or any New Registration
Statement effective at all times during the Registration Period, and, during such period, comply
with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities
of the Company covered by the Registration Statement or any New Registration Statement until such
time as all of such Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth in such registration
statement.

          b. The Company shall permit the Investor to review and comment upon the Registration Statement
or any New Registration Statement and all amendments and supplements thereto at least two (2)
Trading Days prior to their filing with the SEC, and not file any document in a form to which
Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon
the Registration Statement or any New Registration Statement and any amendments or supplements
thereto within two (2) Trading Days from the date the Investor receives the final version thereof.
The Company shall furnish to the Investor, without charge any correspondence from the SEC or the
staff of the SEC to the Company or its representatives relating to the Registration Statement or
any New Registration Statement.

          c. Upon request of the Investor, the Company shall furnish to the Investor, (i) promptly after
the same is prepared and filed with the SEC, at least one copy of such registration statement and
any amendment(s) thereto, including financial statements and schedules, all documents incorporated
therein by reference and all exhibits, (ii) upon the effectiveness of any registration statement, a
copy of the prospectus included in such registration statement and all amendments and supplements
thereto (or such other number of copies as the Investor may reasonably request) and (iii) such
other documents, including copies of any preliminary or final prospectus, as the Investor may
reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by the Investor.

          d. The Company shall use reasonable best efforts to (i) register and qualify the Registrable
Securities covered by a registration statement under such other securities or “blue sky” laws of
such jurisdictions in the United States as the Investor reasonably requests, (ii) prepare and file
in those jurisdictions, such amendments (including post-effective amendments) and supplements to
such registrations and qualifications as may be necessary to maintain the effectiveness thereof
during the Registration Period, (iii) take such other actions as may be necessary to maintain such
registrations and qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the Registrable Securities for
sale in such jurisdictions; provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general
taxation in any such jurisdiction, or (z) file a general consent to service of process in any such
jurisdiction. The Company shall promptly notify the

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Investor who holds Registrable Securities of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of the Registrable
Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United
States or its receipt of actual notice of the initiation or threatening of any proceeding for such
purpose.

          e. As promptly as practicable after becoming aware of such event or facts, the Company shall
notify the Investor in writing of the happening of any event or existence of such facts as a result
of which the prospectus included in any registration statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading, and promptly prepare a supplement or amendment to such registration statement
to correct such untrue statement or omission, and deliver a copy of such supplement or amendment to
the Investor (or such other number of copies as the Investor may reasonably request). The Company
shall also promptly notify the Investor in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed, and when a registration statement or any
post-effective amendment has become effective (notification of such effectiveness shall be
delivered to the Investor by facsimile on the same day of such effectiveness and by overnight
mail), (ii) of any request by the SEC for amendments or supplements to any registration statement
or related prospectus or related information, and (iii) of the Company’s reasonable determination
that a post-effective amendment to a registration statement would be appropriate.

          f. The Company shall use its reasonable best efforts to prevent the issuance of any stop order
or other suspension of effectiveness of any registration statement, or the suspension of the
qualification of any Registrable Securities for sale in any jurisdiction and, if such an order or
suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible
moment and to notify the Investor of the issuance of such order and the resolution thereof or its
receipt of actual notice of the initiation or threat of any proceeding for such purpose.

          g. The Company shall (i) cause all the Registrable Securities to be listed on each securities
exchange on which securities of the same class or series issued by the Company are then listed, if
any, if the listing of such Registrable Securities is then permitted under the rules of such
exchange, or (ii) secure designation and quotation of all the Registrable Securities on the
Principal Market. The Company shall pay all fees and expenses in connection with satisfying its
obligation under this Section.

          h. The Company shall cooperate with the Investor to facilitate the timely preparation and
delivery of certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to any registration statement and enable such certificates to be
in such denominations or amounts as the Investor may reasonably request and registered in such
names as the Investor may request.

          i. The Company shall at all times provide a transfer agent and registrar with respect to its
Common Stock.

          j. If reasonably requested by the Investor, the Company shall (i) immediately incorporate in a
prospectus supplement or post-effective amendment such information as the Investor believes should
be included therein relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the number of Registrable Securities being sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable
Securities; (ii) make all required filings of such prospectus supplement or post-effective
amendment as

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soon as notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and (iii) supplement or make amendments to any registration statement.

          k. The Company shall use its reasonable best efforts to cause the Registrable Securities
covered by the any registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to consummate the disposition of such
Registrable Securities.

          l. Within one (1) Trading Day after any registration statement which includes the Registrable
Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal
counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with
copies to the Investor) confirmation that such registration statement has been declared effective
by the SEC in the form attached hereto as Exhibit A. Thereafter, if requested by the Buyer
at any time, the Company shall require its counsel to deliver to the Buyer a written confirmation
whether or not the effectiveness of such registration statement has lapsed at any time for any
reason (including, without limitation, the issuance of a stop order) and whether or not the
registration statement is current and available to the Buyer for sale of all of the Registrable
Securities.

          m. The Company shall take all other reasonable actions necessary to expedite and facilitate
disposition by the Investor of Registrable Securities pursuant to any registration statement.

     4. OBLIGATIONS OF THE INVESTOR.

          a. The Company shall notify the Investor in writing of the information the Company reasonably
requires from the Investor in connection with any registration statement hereunder. The Investor
shall furnish to the Company such information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable Securities held by it as shall be
reasonably required to effect the registration of such Registrable Securities and shall execute
such documents in connection with such registration as the Company may reasonably request.

          b. The Investor agrees to cooperate with the Company as reasonably requested by the Company in
connection with the preparation and filing of any registration statement hereunder.

          c. The Investor agrees that, upon receipt of any notice from the Company of the happening of
any event or existence of facts of the kind described in Section 3(f) or the first sentence of
3(e), the Investor will immediately discontinue disposition of Registrable Securities pursuant to
any registration statement(s) covering such Registrable Securities until the Investor’s receipt of
the copies of the supplemented or amended prospectus contemplated by Section 3(f) or the first
sentence of 3(e). Notwithstanding anything to the contrary, the Company shall cause its transfer
agent to promptly deliver shares of Common Stock without any restrictive legend in accordance with
the terms of the Subscription Agreement in connection with any sale of Registrable Securities with
respect to which an Investor has entered into a contract for sale prior to the Investor’s receipt
of a notice from the Company of the happening of any event of the kind described in Section 3(f) or
the first sentence of 3(e) and for which the Investor has not yet settled.

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     5. EXPENSES OF REGISTRATION.

          All reasonable expenses, other than sales or brokerage commissions, incurred in connection
with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees, printers and accounting fees, and
fees and disbursements of counsel for the Company, shall be paid by the Company.

     6. INDEMNIFICATION.

          a. To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold
harmless and defend the Investor, each Person, if any, who controls the Investor, the members, the
directors, officers, partners, employees, agents, representatives of the Investor and each Person,
if any, who controls the Investor within the meaning of the 1933 Act or the Securities Exchange Act
of 1934, as amended (the “1934 Act”) (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid in
settlement or expenses, joint or several, (collectively, “Claims”) incurred in investigating,
preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken
from the foregoing by or before any court or governmental, administrative or other regulatory
agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or
may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as
such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise
out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact
in the Registration Statement, any New Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification of the offering under the
securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered
(“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, (ii) any untrue
statement or alleged untrue statement of a material fact contained in the final prospectus (as
amended or supplemented, if the Company files any amendment thereof or supplement thereto with the
SEC) or the omission or alleged omission to state therein any material fact necessary to make the
statements made therein, in light of the circumstances under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the
1934 Act, any other law, including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the
Registration Statement or any New Registration Statement or (iv) any material violation by the
Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being,
collectively, “Violations”). The Company shall reimburse each Indemnified Person promptly as such
expenses are incurred and are due and payable, for any legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section
6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a
Violation which occurs in reliance upon and in conformity with information furnished in writing to
the Company by such Indemnified Person expressly for use in connection with the preparation of the
Registration Statement, any New Registration Statement or any such amendment thereof or supplement
thereto, if such prospectus was timely made available by the Company pursuant to Section 3(c) or
Section 3(e); (ii) with respect to any superceded prospectus, shall not inure to the benefit of any
such person from whom the person asserting any such Claim purchased the Registrable Securities that
are the subject thereof (or to the benefit of any person controlling such person) if the untrue
statement or omission of material fact contained in the superceded prospectus was corrected in the
revised prospectus, as then amended or supplemented, if such revised prospectus was timely made

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available by the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person
was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to
a violation and such Indemnified Person, notwithstanding such advice, used it; (iii) shall not be
available to the extent such Claim is based on a failure of the Investor to deliver or to cause to
be delivered the prospectus made available by the Company, if such prospectus was timely made
available by the Company pursuant to Section 3(c) or Section 3(e); and (iv) shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the
Indemnified Person and shall survive the transfer of the Registrable Securities by the Investor
pursuant to Section 9.

          b. In connection with the Registration Statement or any New Registration Statement, the
Investor agrees to severally and not jointly indemnify, hold harmless and defend, to the same
extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors,
each of its officers who signs the Registration Statement or any New Registration Statement, each
Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act
(collectively and together with an Indemnified Person, an “Indemnified Party”), against any Claim
or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or
otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such Violation occurs in
reliance upon and in conformity with written information about the Investor set forth on
Exhibit B attached hereto and furnished to the Company by the Investor expressly for use in
connection with such registration statement; and, subject to Section 6(d), the Investor will
reimburse any legal or other expenses reasonably incurred by them in connection with investigating
or defending any such Claim; provided, however, that the indemnity agreement contained in this
Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply
to amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of the Investor, which consent shall not be unreasonably withheld; provided, further,
however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim
or Indemnified Damages as does not exceed the net proceeds to the Investor as a result of the sale
of Registrable Securities pursuant to such registration statement. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of such Indemnified
Party and shall survive the transfer of the Registrable Securities by the Investor pursuant to
Section 9.

          c. Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6
of notice of the commencement of any action or proceeding (including any governmental action or
proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party under this Section 6, deliver to the
indemnifying party a written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the defense thereof with
counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the
Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified
Party shall have the right to retain its own counsel with the fees and expenses to be paid by the
indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party,
the representation by such counsel of the Indemnified Person or Indemnified Party and the
indemnifying party would be inappropriate due to actual or potential differing interests between
such Indemnified Person or Indemnified Party and any other party represented by such counsel in
such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the
indemnifying party in connection with any negotiation or defense of

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any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates
to such action or claim. The indemnifying party shall keep the Indemnified Party or Indemnified
Person fully apprised at all times as to the status of the defense or any settlement negotiations
with respect thereto. No indemnifying party shall be liable for any settlement of any action,
claim or proceeding effected without its written consent, provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party
shall, without the consent of the Indemnified Party or Indemnified Person, consent to entry of any
judgment or enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or
Indemnified Person of a release from all liability in respect to such claim or litigation.
Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to
all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party within a reasonable time of the commencement of
any such action shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party
is prejudiced in its ability to defend such action.

          d. The indemnification required by this Section 6 shall be made by periodic payments of the
amount thereof during the course of the investigation or defense, as and when bills are received or
Indemnified Damages are incurred.

          e. The indemnity agreements contained herein shall be in addition to (i) any cause of action
or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or
others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

     7. CONTRIBUTION.

          To the extent any indemnification by an indemnifying party is prohibited or limited by law,
the indemnifying party agrees to make the maximum contribution with respect to any amounts for
which it would otherwise be liable under Section 6 to the fullest extent permitted by law;
provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable
Securities.

     8. REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

          With a view to making available to the Investor the benefits of Rule 144 promulgated under the
1933 Act or any other similar rule or regulation of the SEC that may at any time permit the
Investor to sell securities of the Company to the public without registration (“Rule 144”), the
Company agrees, at the Company’s sole expense, to:

          a. make and keep public information available, as those terms are understood and defined in
Rule 144;

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          b. file with the SEC in a timely manner all reports and other documents required of the
Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such
requirements and the filing of such reports and other documents is required for the applicable
provisions of Rule 144; and

          c. furnish to the Investor so long as the Investor owns Registrable Securities, promptly upon
request, (i) a written statement by the Company that it has complied with the reporting and or
disclosure provisions of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably requested to permit the Investor to
sell such securities pursuant to Rule 144 without registration.

          d. take such additional action as is requested by the Investor to enable the Investor to sell
the Registrable Securities pursuant to Rule 144, including, without limitation, delivering all such
legal opinions, consents, certificates, resolutions and instructions to the Company’s Transfer
Agent as may be requested from time to time by the Investor and otherwise fully cooperate with
Investor and Investor’s broker to effect such sale of securities pursuant to Rule 144.

The Company agrees that damages may be an inadequate remedy for any breach of the terms and
provisions of this Section 8 and that Investor shall, whether or not it is pursuing any remedies at
law, be entitled to equitable relief in the form of a preliminary or permanent injunctions, without
having to post any bond or other security, upon any breach or threatened breach of any such terms
or provisions.

     9. ASSIGNMENT OF REGISTRATION RIGHTS.

          The Company shall not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Investor, including by merger or consolidation. The Investor may not
assign its rights under this Agreement without the written consent of the Company, other than to an
affiliate of the Investor controlled by Steven G. Martin or Joshua B. Scheinfeld.

     10. AMENDMENT OF REGISTRATION RIGHTS.

          Provisions of this Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Investor.

     11. MISCELLANEOUS.

          a. A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is
deemed to own of record such Registrable Securities. If the Company receives conflicting
instructions, notices or elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or election received from
the registered owner of such Registrable Securities.

          b. Any notices, consents, waivers or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have been delivered:
(i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile

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(provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party); or (iii) one (1) Trading Day after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to receive the same. The
addresses and facsimile numbers for such communications shall be:

     If to the Company:

	 	   	Insignia Solutions plc

41300 Christy Street

Fremont, CA 94538

Telephone: 510-360-3700

Facsimile: 510-360-3701

Attention: Chief Executive Officer

     With a copy to:

	 	   	Venture Law Group

2775 Sand Hill Road

Menlo Park, CA 94025

Telephone: 650-854-4488

Facsimile: 650-233-8386

Attention: Mark A. Medearis

     If to the Investor:

	 	   	Fusion Capital Fund II, LLC

222 Merchandise Mart Plaza, Suite 9-112

Chicago, IL 60654

Telephone: 312-644-6644

Facsimile: 312-644-6244

Attention: Steven G. Martin

or at such other address and/or facsimile number and/or to the attention of such other person as
the recipient party has specified by written notice given to each other party three (3) Trading
Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient
facsimile number and an image of the first page of such transmission or (C) provided by a
nationally recognized overnight delivery service, shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

          c. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or
delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

          d. The corporate laws of England and Wales shall govern all issues concerning the relative
rights of the Company and its stockholders. All other questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by the internal laws
of the State of Illinois, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Illinois or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of Illinois. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting the City
of Chicago, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it

10

 

is not personally subject to the jurisdiction of any such court, that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding
is improper. Each party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. If
any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of
this Agreement in that jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

          e. This Agreement, and the Purchase Agreement constitute the entire agreement among the
parties hereto with respect to the subject matter hereof and thereof. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein and therein.
This Agreement and the Subscription Agreement supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

          f. Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and
be binding upon the permitted successors and assigns of each of the parties hereto.

          g. The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.

          h. This Agreement may be executed in identical counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same agreement. This Agreement, once
executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy
of this Agreement bearing the signature of the party so delivering this Agreement.

          i. Each party shall do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

          j. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent and no rules of strict construction will be applied against any
party.

          k. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be
enforced by, any other Person.

* * * * * *

11

 

     IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly
executed as of day and year first above written.

	 	 	 	 	 
	 	 	THE COMPANY:
	 
	 	 	 	 
	 	 	INSIGNIA SOLUTIONS plc
	 
	

	 	By:	 	/s/ Mark McMillan
	

	 	 	 	

	 	 	Name: Mark McMillan
	 	 	Title: CEO
	 
	 	 	 	 
	 	 	BUYER:
	 
	 	 	 	 
	 	 	FUSION CAPITAL FUND II, LLC
	 	 	BY: FUSION CAPITAL PARTNERS, LLC
	 	 	BY: SGM HOLDINGS CORP.
	 
	 	 	 	 
	

	 	By:	 	/s/ Steven G. Martin
	

	 	 	 	

	 	 	Name: Steven G. Martin
	 	 	Title: President

12

 

EXHIBIT A

TO REGISTRATION RIGHTS AGREEMENT

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

[Date]

[TRANSFER AGENT]

                                                                                

                                                                                

Re: [                                        ]

Ladies and Gentlemen:

          We are counsel to INSIGNIA SOLUTIONS plc, a company incorporated under the laws of England and
Wales (the “Company”), and have represented the Company in connection with that certain Securities
Subscription Agreement, dated as of ___, 2005 (the
“Subscription Agreement”), entered into by
and between the Company and Fusion Capital Fund II, LLC (the
“Buyer”) pursuant to which the Company
has agreed to issue to the Buyer Ordinary Shares, 20 UK pence nominal value per share, of the
Company represented by American Depository Shares (the “Common Stock”), in an amount up to Twelve
Million Dollars ($12,000,000) (the “Purchase Shares”), in accordance with the terms of the
Subscription Agreement. In addition, pursuant to the Subscription Agreement, the Company issued to
the Buyer warrants to purchase up to 4,000,000 shares of Common Stock (the “Warrant Shares”).
Pursuant to the Subscription Agreement, the Company also has entered into a Registration Rights
Agreement, dated as of ___, 2005, with the Buyer (the
“Registration Rights Agreement”) pursuant
to which the Company agreed, among other things, to register the Purchase Shares, and the Warrant
Shares under the Securities Act of 1933, as amended (the
“1933 Act”). In connection with the
Company’s obligations under the Subscription Agreement and the Registration Rights Agreement, on
___, 2005, the Company filed a Registration Statement (File No. 333-___) (the
“Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the
sale of the Purchase Shares, and the Warrant Shares.

          In connection with the foregoing, we advise you that a member of the SEC’s staff has advised
us by telephone that the SEC has entered an order declaring the Registration Statement effective
under the 1933 Act at 5:00 P.M. on ___, 200___and we have no knowledge, after telephonic
inquiry of a member of the SEC’s staff, that any stop order suspending its effectiveness has been
issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and
the Purchase Shares, and the Warrant Shares are available for sale under the 1933 Act pursuant to
the Registration Statement.

          The Buyer has confirmed it shall comply with all securities laws and regulations applicable
to it including applicable prospectus delivery requirements upon sale of the Purchase Shares, and
the Warrant Shares.

Very truly yours,

[Company Counsel]

By:                                                            

 

CC: Fusion Capital Fund II, LLC

 

 

EXHIBIT B

TO REGISTRATION RIGHTS AGREEMENT

Information About The Investor Furnished To The Company By The Investor

Expressly For Use In Connection With The Registration Statement

As of the date of the Subscription Agreement, Fusion Capital beneficially owned _______ shares
of common stock of the Company. Steven G. Martin and Joshua B. Scheinfeld, the principals of
Fusion Capital, are deemed to be beneficial owners of all of the shares of common stock owned by
Fusion Capital. Messrs. Martin and Scheinfeld have shared voting and investment power over the
shares being offered under the prospectus filed with the SEC in connection with the transactions
contemplated under the Subscription Agreement.exv10w93

 

Exhibit 10.93

WARRANT

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR ANY STATE SECURITIES LAW. NEITHER THIS WARRANT NOR ANY WARRANT SHARES ISSUABLE
UPON EXERCISE HEREOF NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE SOLD,
ASSIGNED, OR TRANSFERRED EXCEPT IN COMPLIANCE WITH THE ACT AND APPLICABLE STATE SECURITIES
LAWS.

W-2005-2

INSIGNIA SOLUTIONS PLC

WARRANT

Original Issue Date:
February 10, 2005

     This Warrant (“Warrant”) is issued in connection with and pursuant to that
certain Securities Subscription Agreement (the “Subscription Agreement”) dated as of
February 10, 2005, by and between INSIGNIA SOLUTIONS PLC, a company incorporated under the
laws of England and Wales (the “Company”) and FUSION CAPITAL FUND II, LLC (the “Buyer”).

     FOR VALUE RECEIVED, the Buyer, the registered holder hereof, or its permitted assigns
(the “Holder”), is entitled to purchase from the Company, during the period specified in
this Warrant, 2,000,000 at the U.S. Dollar equivalent of 20.5 UK
pence (subject to
adjustment as hereinafter provided) fully paid and non-assessable American depository
shares (each an “ADS” and collectively, the “ADSs”) of the Company at the purchase price
per ADS provided in Section 1.2 of this Warrant (the “Warrant Exercise Price”), all subject
to the terms and conditions set forth in this Warrant. Each ADS represents one ordinary
share, 20 UK pence per share nominal value, of the Company (the “Ordinary Shares”). The
ADSs to be purchased as described above are referred to herein as the “Warrant Shares.”
All terms not otherwise defined herein shall have the meaning ascribed to them in the
Subscription Agreement.

     Section 1. Period for Exercise and Exercise Price; Redemption.

     1.1 Period for Exercise. The right to purchase shares of Warrant Shares represented
by this Warrant shall be immediately exercisable, and shall expire at 5:00 p.m., Chicago
local time, February 28, 2010 (the “Expiration Date”). From and after the Expiration Date
this Warrant shall be null and void and of no further force or effect whatsoever.

     1.2 Warrant Exercise Price. The Warrant Exercise Price per share of Warrant Shares
shall be 2,000,000 at the US Dollar equivalent of 20.5 UK pence per ADS (subject to
adjustment as hereinafter provided), 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 adjustment to the Warrant 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 Company’s obligations under
the United Kingdom Companies Act 1985.

     Section 2. Exercise of Warrant.

     2.1 Manner of Exercise. The Holder may exercise this Warrant, in whole or in part,
immediately, but not after the Expiration Date, during normal business hours on any Trading
Day by surrendering this Warrant to the Company at the principal office of the Company,
accompanied by a Warrant Exercise Form in substantially the form annexed hereto duly
executed by the Buyer and by payment of the Warrant Exercise Price for the number of
Warrant Shares for which this Warrant is then exercisable, either (i) in immediately
available funds, (ii) by delivery of an instrument evidencing indebtedness owing by the
Company to the Holder in the appropriate amount, (iii) by authorizing the Company to retain
ADSs which would otherwise be issuable upon exercise of this Warrant (subject to and in
accordance with Section 2.4 hereof) or (iv) in a combination of (i), (ii) or (iii) above,
provided, however, that in no event shall the Holder be entitled to exercise this Warrant
for a number of Warrant Shares in excess of that number of Warrant Shares which, upon
giving effect to such exercise, would cause the aggregate number of ADSs or Ordinary Shares
beneficially owned by the Holder to exceed 9.9% of the outstanding ADSs or Ordinary Shares
following such exercise. For purposes of the foregoing proviso, the aggregate number of
ADSs or Ordinary Shares beneficially owned by the Holder shall include the number of ADSs
or Ordinary Shares issuable upon exercise of this Warrant with respect to which
determination of such proviso is being made, but shall exclude ADSs or Ordinary Shares
which would be issuable upon (i) exercise of the remaining, unexercised Warrants
beneficially owned by the Holder and (ii) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Company beneficially owned by the Holder
subject to a limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this paragraph,
beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. The Holder may waive the foregoing limitation by written
notice to the Company upon not less than 61 days prior written notice (with such waiver
taking effect only upon the expiration of such 61 day notice period).

     2.2 When Exercise Effective. Each exercise of this Warrant shall be deemed to have
been effected on the day on which all requirements of Section 2.1 shall have been met with
respect to such exercise. At such time the person in whose name any certificate for shares
of Warrant Shares shall be issuable upon such exercise shall be deemed for all corporate
purposes to have become the Holder of record of such shares, regardless of the actual
delivery of certificates evidencing such shares.

     2.3 Delivery of Certificates. As soon as practicable after each exercise of this
Warrant, and in any event no later than 3 Trading Days after such exercise, the Company
will issue Warrant Shares for the number of Warrant Shares to which the Holder is entitled
upon such Holder’s submission of the applicable Warrant Exercise Form.

2

 

     2.4 Cashless Exercise. The Holder may, by providing notice thereof to the Company
along with the Warrant Exercise Form, elect to exercise the Warrant for a number of
Warrant Shares determined in accordance with the following formula:

          X = Y(A-B)

                     A

	 	 	 	 	 	 	 
	 	 	Where:
	 
	 	 	 	 	 	 
	

	 	X
	 	=
	 	The number of Warrant Shares to be issued to the
Holder.
	 
	 	 	 	 	 	 
	

	 	Y
	 	=
	 	The number of Warrant Shares
purchasable under this Warrant (at the date of such
exercise).
	 
	 	 	 	 	 	 
	

	 	A
	 	=
	 	The fair market value of one ADS (or
other security for which the Warrant is then exercisable
at the date of such exercise).
	 
	 	 	 	 	 	 
	

	 	B
	 	=
	 	Exercise Price (as adjusted to the date of such
exercise).

For purposes of this Section 2.4, the “fair market value” per share shall be the Closing
Sale Price of the ADSs for the Trading Day immediately prior to the notice of exercise of
the Warrant. Notwithstanding any provisions herein to the contrary, the “cashless
exercise” of the Warrants contemplated hereunder shall not be permitted to the extent that
the Company is prohibited under the corporate laws and regulations of England and Wales
from effectuating such “cashless exercise” of the Warrants.

     Section 3. Adjustment of Purchase Price and Number of Shares. The Warrant Exercise
Price and the kind of securities issuable upon exercise of the Warrant shall be adjusted
from time to time as follows (subject to Section 1.2):

     3.1 Subdivision or Consolidation of Shares (Share Splits). If the Company at any time
effects a subdivision or consolidation of the outstanding ADSs or Ordinary Shares (through
a split or otherwise), the number of Warrant Shares shall be increased, in the case of a
subdivision, or the number of shares of Warrant Shares shall be decreased, in the case of a
consolidation, in the same proportions as the ADSs or Ordinary Shares are subdivided or
consolidated, in each case effective automatically upon, and simultaneously with, the
effectiveness of the subdivision or consolidation which gives rise to the adjustment.

     3.2 Dividends. If the Company at any time pays a dividend, or makes any other
distribution, to holders of ADSs or Ordinary Shares payable in ADSs or Ordinary Shares, or
fixes a record date for the determination of holders of ADSs or Ordinary Shares entitled to
receive a dividend or other distribution payable in Ordinary Shares or ADSs, then the
number of shares of Warrant Shares in effect immediately prior to such action shall be
proportionately increased so that the Holder hereof may receive upon exercise of the
Warrant the aggregate number of ADSs which he or it would have owned immediately following
such action if the Warrant had been exercised immediately prior to such action. The
adjustment shall become effective immediately as of the date the Company shall take a
record of the holders of ADSs or Ordinary Shares for the purpose of receiving such dividend
or distribution (or if no such record is taken, as of the effectiveness of such dividend or
distribution).

3

 

     3.3 Reclassification, Consolidation or Merger. If at any time, as a result of:

     (a) a capital reorganization or reclassification (other than a subdivision,
consolidation or dividend provided for elsewhere in this Section 3), or

     (b) a merger or consolidation of the Company with another corporation (whether or not
the Company is the surviving corporation),

the ADSs issuable upon exercise of the Warrants shall be changed into or exchanged for the
same or a different number of shares of any class or classes of shares of the Company or
any other corporation, or other securities convertible into such shares, then, as a part of
such reorganization, reclassification, merger or consolidation, appropriate adjustments
shall be made in the terms of the Warrants (or of any securities into which the Warrants
are exercised or for which the Warrants are exchanged), so that:

     (y) the Holders of Warrants or of such substitute securities shall thereafter be
entitled to receive, upon exercise of the Warrants or of such substitute securities, the
kind and amount of shares, other securities, money and property which such Holders would
have received at the time of such capital reorganization, reclassification, merger, or
consolidation, if such Holders had exercised their Warrants immediately prior to such
capital reorganization, reclassification, merger, or consolidation, and

     (z) the Warrants or such substitute securities shall thereafter be adjusted on terms
as nearly equivalent as may be practicable to the adjustments theretofore provided in this
Section 3.3.

No consolidation or merger in which the Company is not the surviving corporation shall be
consummated unless the surviving corporation shall agree, in writing, to the provisions of
this Section 3.3. The provisions of this Section 3.3 shall similarly apply to successive
capital reorganizations, reclassifications, mergers and consolidations.

     3.4 Other Action Affecting ADSs or Ordinary Shares. If at any time the Company takes
any action affecting ADSs or Ordinary Shares, other than an action described in any of
Sections 3.1 — 3.3 which could reasonably be expected to have an adverse effect upon the
exercise rights of the Warrants, the Warrant Exercise Price or the kind of securities
issuable upon exercise of the Warrants, or both, shall be adjusted in such manner to be
equitable in the circumstances.

     3.5 Notice of Adjustment Events. Whenever the Company contemplates the occurrence of
an event which would give rise to adjustments under this Section 3, the Company shall mail
to each Warrant Holder, at least 5 days prior to the record date with respect to such event
or, if no record date shall be established, at least 5 days prior to such event, a notice
specifying (i) the nature of the contemplated event, and (ii) the date on which any such
record is to be taken for the purpose of such event, and (iii) the date on which such event
is expected to become effective, and (iv) the time, if any is to be fixed, when the holders
of record shall be entitled to exchange their ADSs or Ordinary Shares (or other securities)
for securities or other property deliverable in connection with such event.

     3.6 Notice of Adjustments. Whenever the kind or number of securities issuable upon
exercise of the Warrants, or both, shall be adjusted pursuant to Section 3, the Company
shall deliver a certificate signed by its Chief Executive Officer and by its Chief
Financial Officer,

4

 

setting forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated (including a description
of the basis of any determination hereunder), and the Warrant Exercise Price and the kind
of securities issuable upon exercise of the Warrants after giving effect to such
adjustment, and shall cause copies of such certificate to be mailed (by first class mail
postage prepaid) to each Warrant Holder promptly after each adjustment.

     Section 4. Reservation. The Company covenants and agrees that it will at all times
have authorized, reserve and keep available, solely for issuance and delivery upon the
exercise of this Warrant, the number of Ordinary Shares represented by ADSs from time to
time issuable upon the exercise of this Warrant. The Company further covenants and agrees
that this Warrant is, and any Warrants issued in substitution for or replacement of this
Warrant and all Warrant Shares, will upon issuance be duly authorized and validly issued
and, in the case of Ordinary Shares represented by ADSs issuable hereunder, upon issuance
will be fully paid and non-assessable and free from all preemptive rights of any
shareholder, and from all taxes, liens and charges with respect to the issue thereof.

     Section 5. Ownership, Transfer and Substitution of Warrants.

     5.1 Ownership of Warrants. The Company may treat the person in whose name
any Warrant is registered on the register kept at the principal office of the Company as
the owner and Holder thereof for all purposes, notwithstanding any notice to the contrary,
but in all events recognizing any transfers made in accordance with the terms of this
Warrant.

     5.2 Transfer and Exchange of Warrants. Upon the surrender of any Warrant, properly
endorsed, for registration of transfer or for exchange at the principal office of the
Company, the Company at its expense will execute and deliver to the Holder thereof, upon
the order of such Holder, a new Warrant or Warrants of like tenor, in the name of such
Holder or as such Holder may direct, for such number of ADSs with respect to each such
Warrant, the aggregate number of ADSs in any event not to exceed the number of ADSs for
which the Warrant so surrendered had not been exercised.

     5.3 REGISTRATION RIGHTS. THE HOLDER OF THIS WARRANT IS ENTITLED TO CERTAIN
REGISTRATION RIGHTS WITH RESPECT TO THE WARRANT SHARES ISSUABLE UPON EXERCISE THEREOF. SAID
REGISTRATION RIGHTS ARE SET FORTH IN A REGISTRATION RIGHTS AGREEMENT BY AND BETWEEN THE
BUYER AND THE COMPANY.

     5.4 Exemption from Registration. If an opinion of counsel provides that registration
is not required for the proposed exercise or transfer of this Warrant or the proposed
transfer of the Warrant Shares and that the proposed exercise or transfer in the absence of
registration would require the Company to take any action including executing and filing
forms or other documents with the Securities and Exchange Commission (the “SEC”) or any
state securities agency, or delivering to the Holder any form or document in order to
establish the right of the Holder to effectuate the proposed exercise or transfer, the
Company agrees promptly, at its expense, to take any such action. At any time
after the registration statement contemplated in Section 4(a) of the Subscription
Agreement is declared effective by the SEC, any Warrant Shares issued to the Holder in
connection with any exercise of this Warrant shall be issued in certificated form and shall
bear no restrictive legend. At any time before the registration statement
contemplated in Section 4(a) of the Subscription Agreement is declared effective by the
SEC, any

5

 

Warrant Shares issued to the Holder in connection with any exercise of this Warrant
shall be issued in certificated form and shall bear the following restrictive legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES
LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

On the Commencement Date (as defined in the Subscription Agreement), the Company shall
cause any restrictive legend on any outstanding Warrant Shares to be removed.

     Section 6. No Rights or Liabilities as Shareholder. Nothing contained in this Warrant
shall be construed as conferring upon the Holder hereof any rights as a shareholder of the
Company or as imposing any liabilities on such holder to purchase any securities or as a
shareholder of the Company, whether such liabilities are asserted by the Company or by
creditors of the Company.

     Section 7. Rule 144 Sales. At the request of any Holder who proposes to sell
securities in compliance with Rule 144 of the SEC, the Company will (i) forthwith furnish
to such Holder a written statement of compliance with the filing requirements of the SEC as
set forth in Rule 144, as such rules may be amended from time to time and (ii) make
available to the public and such Holder such information as will enable the Holder to make
sales pursuant to Rule 144.

     Section 8.
Miscellaneous.

     8.1 Amendment and Waiver. This Warrant may be amended with, and only
with, the written consent of the Company and the Holder. Any waiver of any term, covenant,
agreement or condition contained in this Warrant shall not be deemed a waiver of any other
term, covenant, agreement or condition, and any waiver of any default in any such term,
covenant, agreement or condition shall not be deemed a waiver of any later default thereof
or of any default of any other term, covenant, agreement or condition.

     8.2 Representations and Warranties to Survive Closing. All representations,
warranties and covenants contained herein shall survive the execution and delivery of this
Warrant and the issuance of any Warrant Shares upon the exercise hereof.

     8.3 Severability. In the event that any court or any governmental authority or agency
declares all or any part of any Section of this Warrant to be unlawful or invalid, such
unlawfulness or invalidity shall not serve to invalidate any other Section of this Warrant,
and in

6

 

the event that only a portion of any Section is so declared to be unlawful or invalid,
such unlawfulness or invalidity shall not serve to invalidate the balance of such Section.

     8.4 Binding Effect; No Third Party Beneficiaries. All provisions of this Warrant
shall be binding upon and inure to the benefit of the parties and their respective heirs,
legatees, executors, administrators, legal representatives, successors, and permitted
transferees and assigns. No person other than the holder of this Warrant and the Company
shall have any legal or equitable right, remedy or claim under or in respect of, this
Warrant.

     8.5 Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Warrant must be in writing and will be
deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (iii) one Trading Day
after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

If to the Company:

Insignia Solutions plc

41300 Christy Street

Fremont, CA 94538

Telephone: 510-360-3700

Facsimile: 510-360-3701

Attention: Chief Executive Officer

With a copy to:

Venture Law Group

2800 Sand Hill Road

Menlo Park, CA 94025

Telephone: 650-854-4488

Facsimile: 650-233-8386

Attention: Mark A. Medearis

If to the Holder:

Fusion Capital Fund II, LLC

222 Merchandise Mart Plaza, Suite 9-112

Chicago, IL 60654

Telephone: 312-644-6644

Facsimile: 312-644-6244

Attention: Steven G. Martin

If to the Transfer Agent:

Bank of New York

ADR Department

620 Avenue of the Americas, 6th Floor

New York, NY 10011

Telephone: 212-815-4305

Facsimile: 212-571-3050

Attention: Tom Abbott

7

 

or at such other address and/or facsimile number and/or to the attention of such other
person as the recipient party has specified by written notice given to each other party
three (3) Trading Days prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine containing
the time, date, and recipient facsimile number or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

     8.6 Taxes, Costs and Expenses. The Company covenants and agrees that it will pay when
due and payable any and all United Kingdom, English, Welsh, federal, state and local taxes
(other than income taxes) and any other costs and expenses (including any and all
transfer, stamp or similar taxes) which may be payable in respect of the preparation,
issuance, delivery, exercise, or surrender of this Warrant pursuant to the terms of this
Warrant or the issuance of any shares of Warrant Shares as a result thereof. If any suit
or action is instituted or attorneys employed to enforce this Warrant or any part thereof,
the Company promises and agrees to pay all costs and expenses associated therewith,
including reasonable attorneys’ fees and court costs. 

     8.7 Governing Law; Jurisdiction; Jury Trial. The corporate laws of England and Wales
shall govern all issues concerning the relative rights of the Company and its shareholders
and the powers and capacity of the Company. All other questions concerning the
construction, validity, enforcement and interpretation of this Warrant shall be governed by
the internal laws of the State of Illinois, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Illinois or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of Chicago, for the adjudication of any
dispute hereunder or under the other Transaction Documents or in connection herewith or
therewith, or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

     8.8 Loss of Warrant. Upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) of indemnification from the Holder, and upon surrender and
cancellation of this Warrant, if mutilated, the Company shall execute and deliver a new
Warrant of like tenor and date.

     8.9 Entire Agreement. This Warrant, the Subscription Agreement and the Registration
Rights Agreement of even date herewith represent the entire agreement and

8

 

understanding between the parties concerning the subject matter hereof and supercede
all prior and contemporaneous agreements, understandings, representations and warranties
with respect thereto.

     8.10 Headings. The headings used herein are used for convenience only and are not to
be considered in construing or interpreting this Warrant.

	 	 	 	 	 
	 	 	INSIGNIA SOLUTIONS PLC
	 
	 	 	 	 
	

	 	By:	 	/s/ Mark McMillan
	

	 	 	 	

	

	 	Name:	 	Mark McMillan
	

	 	 	 	

	

	 	Title:	 	CEO
	

	 	 	 	

9

 

WARRANT EXERCISE FORM

Date:                                        

INSIGNIA SOLUTIONS PLC

                                        

                                        

Attention:                                        

Ladies
and Gentlemen:

 The undersigned, being the registered holder of your Warrant for the
purchase of ___Warrant Shares issued ___accompanying this letter, hereby
irrevocably exercises such Warrant for ___Warrant Shares (as defined in said
Warrant), and herewith makes payment therefor [via “cash-less exercise”] in accordance with
the Warrant, and requests that such Warrant Shares be issued in the name of, and delivered
to FUSION CAPITAL FUND II, LLC, at the address shown below the signature line
hereof.

If said number of Warrant Shares shall not be all the Warrant Shares issuable upon exercise
of the attached Warrant, a new Warrant is to be issued in the name of the undersigned for
the balance remaining of such Warrant Shares.

FUSION CAPITAL FUND II, LLC

BY: FUSION CAPITAL PARTNERS, LLC

By:

Name:

Title:
 

Fusion Capital Fund II, LLC

222 Merchandise Mart Plaza, Suite 9-112

Chicago, IL 60654

10

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