Document:

WNMI SB2 July 2004 stock purchase agree

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“1933 ACT”), OR ANY STATE SECURITIES LAWS AND SHALL NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED, WHETHER OR NOT FOR CONSIDERATION, BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO COUNSEL FOR THE COMPANY, IN EITHER CASE, TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS.

 

WARNING MODEL MANAGEMENT INC.

Common Stock Purchase Warrant
to
Purchase 5,000,000 Shares
of
Common Stock

This Common Stock Purchase Warrant is issued to:

Michael T. Covell

by WARNING MODEL MANAGEMENT, INC., a New York corporation (hereinafter called the “Company”, which term shall include its successors and assigns). 

 

FOR VALUE RECEIVED and subject to the terms and conditions hereinafter set out, the registered holder of this Warrant as set forth on the books and records of the Company (the “Holder”) is entitled upon surrender of this Warrant to purchase from the Company 5,000,000 fully paid and nonassessable shares of Common Stock, $.001 par value per share (the “Common Stock”), at the Exercise Price (as defined below) per share. 

 

This Warrant shall expire at the close of business on July 9, 2005. 

	
(a)   The right to purchase shares of Common Stock represented by this Warrant may be exercised by the Holder, in whole or in part, by the surrender of this Warrant (properly endorsed if required) at the principal office of the Company at 9440 Santa Monica Blvd. South, Suite 400, Beverly Hills, CA 90210 (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company), and upon payment to the Company, by cash or by certified check or bank draft, of the Exercise Price for such shares. The Company agrees that the shares of Common Stock so purchased shall be deemed to be issued to the Holder as the record owner of such shares of Common Stock as of the close of business on the date on which this Warrant shall have been surrendered and payment made for such shares of Common Stock as aforesaid. Certificates for the shares of Common Stock so purchased (together with a cash adjustment in lieu of any fraction of a share) shall be delivered to the Holder within a reasonable time, not exceeding five (5) business days, after the rights represented by this Warrant shall have been so exercised, and, unless this Warrant has expired, a new Warrant representing the number of shares of Common Stock, if any, with respect to which this Warrant shall not then have been exercised, in all other respects identical with this Warrant, shall also be issued and delivered to the Holder within such time, or, at the request of the Holder, appropriate notation may be made on this Warrant and the same returned to the Holder. 

	
This Warrant may be exercised to acquire, from and after the date hereof, the number of shares of Common Stock set forth on the first page hereof (subject to adjustments described in this Warrant); provided, however, the right hereunder to purchase such shares of Common Stock shall expire at 5:00 p.m. Alameda, California time on July 9, 2005.

	
This Warrant is being issued by the Company pursuant to the terms of the Consulting Agreement dated July 9, 2004. 

	
The Company covenants and agrees that all Common Stock upon issuance against payment in full of the Exercise Price by the Holder pursuant to this Warrant will be validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof (except to the extent resulting from the Holder’s own circumstances, actions or omissions). The Company covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will have at all times authorized, and reserved for the purpose of issue or transfer upon exercise of the rights evidenced by this Warrant, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant, and will procure at its sole expense upon each such reservation of shares the listing thereof (subject to issuance or notice of issuance) on all stock exchanges on which the Common Stock is then listed or inter-dealer trading systems on which the Common Stock is then traded. The Company will take all such action as may be necessary to assure that such shares of Common Stock may be so issued without violation of any applicable law or regulation, or of any requirements of any national securities exchange upon which the Common Stock may be listed or inter-dealer trading system on which the Common Stock is then traded. The Company will not take any action which would result in any adjustment in the number of shares of Common Stock purchasable hereunder if the total number of shares of Common Stock issuable pursuant to the terms of this Warrant after such action upon full exercise of this Warrant and, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon exercise of all options and other rights to purchase shares of Common Stock then outstanding, would exceed the total number of shares of Common Stock then authorized by the Company’s Restated and Amended Articles of Incorporation, as then amended. 

	
The Initial Exercise Price is $.01 per share of Common Stock (“Initial Exercise Price”). The Initial Exercise Price shall be adjusted as provided for below in this Section 4 (the Initial Exercise Price, and the Initial Exercise Price, as thereafter then adjusted, shall be referred to as the “Exercise Price”) and the Exercise Price from time to time shall be further adjusted as provided for below in this Section 4. Upon each adjustment of the Exercise Price, the Holder shall thereafter be entitled to receive upon exercise of this Warrant, at the Exercise Price resulting from such adjustment, the number of shares of Common Stock obtained by (i) multiplying the Exercise Price in effect immediately prior to such adjustment by the number of shares of Common Stock purchasable hereunder immediately prior to such adjustment, and (ii) dividing the product thereof by the Exercise Price resulting from such adjustment. The Exercise Price shall be adjusted as follows:

	
In the case of any amendment to the Company’s Articles of Incorporation to change the designation of the Common Stock or the rights, privileges, restrictions or conditions in respect to the Common Stock or division of the Common Stock, this Warrant shall be adjusted so as to provide that upon exercise thereof, the Holder shall receive, in lieu of each share of Common Stock theretofore issuable upon such exercise, the kind and amount of shares, other securities, money and property receivable upon such designation, change or division by the Holder issuable upon such exercise had the exercise occurred immediately prior to such designation, change or division. This Warrant shall be deemed thereafter to provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 4. The provisions of this Subsection 4(i) shall apply in the same manner to successive reclassifications, changes, consolidations and mergers. 

	
If the Company shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares of Common Stock, or declare a dividend or make any other distribution upon the Common Stock payable in shares of Common Stock, the Exercise Price in effect immediately prior to such subdivision or dividend or other distribution shall be proportionately reduced, and conversely, in case the outstanding shares of Common Stock shall be combined into a smaller number of shares of Common Stock, the Exercise Price in effect immediately prior to such combination shall be proportionately increased. 

	
If any capital reorganization or reclassification of the capital stock of the Company, or any consolidation or merger of the Company with or into another corporation or other entity, or the sale of all or substantially all of the Company’s assets to another corporation or other entity shall be effected in such a way that holders of shares of Common Stock shall be entitled to receive stock, securities, other evidence of equity ownership or assets with respect to or in exchange for shares of Common Stock, then, as a condition of such reorganization, reclassification, consolidation, merger or sale (except as otherwise provided below in this Section 4), lawful and adequate provisions shall be made whereby the Holder shall thereafter have the right to receive upon the exercise hereof upon the basis and upon the terms and conditions specified herein, such shares of stock, securities, other evidence of equity ownership or assets as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the number of shares of Common Stock immediately theretofore purchasable and receivable upon the exercise of this Warrant under this Section 4 had such reorganization, reclassification, consolidation, merger or sale not taken place, and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder to the end that the provisions hereof (including, without limitation, provisions for adjustments of the Exercise Price and of the number of shares of Common Stock receivable upon the exercise of this Warrant) shall thereafter be applicable, as nearly as may be, in relation to any shares of stock, securities, other evidence of equity ownership or assets thereafter deliverable upon the exercise hereof (including an immediate adjustment, by reason of such consolidation or merger, of the Exercise Price to the value for the Common Stock reflected by the terms of such consolidation or merger if the value so reflected is less than the Exercise Price in effect immediately prior to such consolidation or merger). Subject to the terms of this Warrant, in the event of a merger or consolidation of the Company with or into another corporation or other entity as a result of which the number of shares of common stock of the surviving corporation or other entity issuable to holders of Common Stock, is greater or lesser than the number of shares of Common Stock outstanding immediately prior to such merger or consolidation, then the Exercise Price in effect immediately prior to such merger or consolidation shall be adjusted in the same manner as though there were a subdivision or combination of the outstanding shares of Common Stock. The Company shall not effect any such consolidation, merger or sale, unless, prior to the consummation thereof, the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation purchasing such assets shall assume by written instrument executed and mailed or delivered to the Holder, the obligation to deliver to the Holder such shares of stock, securities, other evidence of equity ownership or assets as, in accordance with the foregoing provisions, the Holder may be entitled to receive or otherwise acquire. If a purchase, tender or exchange offer is made to and accepted by the holders of more than fifty (50%) percent of the outstanding shares of Common Stock, the Company shall not effect any consolidation, merger or sale with the person having made such offer or with any affiliate of such person, unless prior to the consummation of such consolidation, merger or sale the Holder of this Warrant shall have been given a reasonable opportunity to then elect to receive upon the exercise of this Warrant the amount of stock, securities, other evidence of equity ownership or assets then issuable with respect to the number of shares of Common Stock in accordance with such offer. 

	
In case the Company shall, at any time prior to exercise of this Warrant, consolidate or merge with any other corporation or other entity (where the Company is not the surviving entity) or transfer all or substantially all of its assets to any other corporation or other entity, then the Company shall, as a condition precedent to such transaction, cause effective provision to be made so that the Holder of this Warrant upon the exercise of this Warrant after the effective date of such transaction shall be entitled to receive the kind and amount of shares, evidences of indebtedness and/or other securities or property receivable on such transaction by a holder of the number of shares of Common Stock as to which this Warrant was exercisable immediately prior to such transaction (without giving effect to any restriction upon such exercise); and, in any such case, appropriate provision shall be made with respect to the rights and interest of the Holder of this Warrant to the end that the provisions of this Warrant shall thereafter be applicable (as nearly as may be practicable) with respect to any shares, evidences of indebtedness or other securities or assets thereafter deliverable upon exercise of this Warrant. Upon the occurrence of any event described in this Section 4(iv), the holder of this Warrant shall have the right to (i) exercise this Warrant immediately prior to such event at an Exercise Price equal to lesser of (1) the then Exercise Price or (2) the price per share of Common Stock paid in such event, or (ii) retain ownership of this Warrant, in which event, appropriate provisions shall be made so that the Warrant shall be exercisable at the Holder’s option into shares of stock, securities or other equity ownership of the surviving or acquiring entity. 

Whenever the Exercise Price shall be adjusted pursuant to this Section 4, the Company shall issue a certificate signed by its President or Vice President and by its Treasurer, Assistant Treasurer, Secretary or Assistant Secretary, 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 on which the Board of Directors of the Company made any determination hereunder), and the Exercise Price after giving effect to such adjustment, and shall cause copies of such certificates to be mailed (by first-class mail, postage prepaid) to the Holder of this Warrant. The Company shall make such certificate and mail it to the Holder promptly after each adjustment. 

No fractional shares of Common Stock shall be issued in connection with any exercise of this Warrant, but in lieu of such fractional shares, the Company shall make a cash payment therefor equal in amount to the product of the applicable fraction multiplied by the Exercise Price then in effect. 

	
In the event the Company grants rights (other than rights granted pursuant to a shareholder rights or poison pill plan) to all shareholders to purchase Common Stock, the Holder shall have the same rights as if this Warrant had been exercised immediately prior to such grant. 

	
The shares of Common Stock issuable upon the exercise of this Warrant shall be registered by the Company pursuant to a Form S-8 to be filed with the Securities and Exchange Commission on or prior to August 30, 2003. 

	
This Warrant need not be changed because of any change in the Exercise Price or in the number of shares of Common Stock purchased hereunder. 

	
The terms defined in this paragraph, whenever used in this Warrant, shall, unless the context otherwise requires, have the respective meanings hereinafter specified. The term “Common Stock” shall mean and include the Company’s Common Stock, $.001 par value per share, authorized on the date of the original issue of this Warrant and shall also include in case of any reorganization, reclassification, consolidation, merger or sale of assets of the character referred to in Section 4 hereof, the stock, securities or assets provided for in such paragraph. The term “Company” shall also include any successor corporation to Famous Fixins Inc. by merger, consolidation or otherwise. The term “outstanding” when used with reference to Common Stock shall mean at any date as of which the number of shares thereof is to be determined, all issued shares of Common Stock, except shares then owned or held by or for the account of the Company. The term “1933 Act” shall mean the Securities Act of 1933, as amended, or any successor Federal statute, and the rules and regulations of the Securities and Exchange Commission, or any other Federal agency then administering the 1933 Act, thereunder, all as the same shall be in effect at the time. 

	
This Warrant is exchangeable, upon the surrender hereby by the Holder at the office or agency of the Company, for new Warrants of like tenor representing in the aggregate the right to subscribe for and purchase the number of shares of Common Stock which may be subscribed for and purchased hereunder, each of such new Warrants to represent the right to subscribe for and purchase such number of shares of Common Stock as shall be designated by the Holder at the time of such surrender. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant or any such new Warrants and, in the case of any such loss, theft, or destruction, upon delivery of a bond of indemnity, reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender or cancellation of this Warrant or such new Warrants, the Company will issue to the Holder a new Warrant of like tenor, in lieu of this Warrant or such new Warrants, representing the right to subscribe for and purchase the number of shares of Common Stock which may be subscribed for and purchased hereunder. 

	
The Company will at no time close its transfer books against the transfer of this Warrant or of any shares of Common Stock issued or issuable upon the exercise of this Warrant in any manner which interferes with the timely exercise of this Warrant. This Warrant shall not entitle the Holder to any voting rights or any rights as a shareholder of the Company. The rights and obligations of the Company, of the Holder, and of any holder of shares of Common Stock issuable hereunder, shall survive the exercise of this Warrant. 

	
This Warrant sets forth the entire agreement of the Company and the Holder of the Common Stock issuable upon the exercise of this Warrant with respect to the rights of the Holder and the Common Stock issuable upon the exercise of this Warrant, notwithstanding the knowledge of such Holder of any other agreement or the provisions of any agreement, whether or not known to the Holder, and the Company represents that there are no agreements inconsistent with the terms hereof or which purport in any way to bind the Holder of this Warrant or the Common Stock. 

	
The validity, interpretation and performance of this Warrant and each of its terms and provisions shall be governed by the laws of the State of California. 

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer under its corporate seal and dated as of June 27, 2003. 

Warning Model Management, INC.

By:    

Name: Michael Rudolph

Title: Chief Executive Officer

	 
	 	 	 
	

	 

FORM OF ELECTION TO PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common Stock under the Warrant to which this form applies, issued by Famous Fixins Inc. ("FIXN"))

 

To Famous Fixins inc.:

 

The undersigned hereby irrevocably elects to purchase _____________ shares of common stock, $0.001 par value per share, of FIXN (the "Common Stock") and, if such Holder is not utilizing the cashless exercise provisions set forth in this Warrant, encloses herewith $________ in cash, certified or official bank check or checks, which sum represents the aggregate Exercise Price (as defined in the Warrant) for the number of shares of Common Stock to which this Form of Election to Purchase relates, together with any applicable taxes payable by the undersigned pursuant to the Warrant.

The undersigned requests that certificates for the shares of Common Stock issuable upon this exercise be issued in the name of

                   

PLEASE INSERT SOCIAL SECURITY OR

 TAX IDENTIFICATION NUMBER

 

 

(Please print name and address)

Dated:       ,                Name of Holder:

(Print)

(By:)

(Name:)

(Title:)

(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

	 
	 	 	 
	

	 

FORM OF ASSIGNMENT

 

[To be completed and signed only upon transfer of Warrant]

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the within Warrant to purchase ____________ shares of Common Stock of Warning Model Management Inc. to which the within Warrant relates and appoints ________________ attorney to transfer said right on the books of Famous Fixins Inc. with full power of substitution in the premises.

Dated:

_______________, ____

_______________________________________

(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

_______________________________________

Address of Transferee

_______________________________________

_______________________________________

In the presence of:

__________________________Sopheon plc - Exhibit 4.2

Number               
of the Roll of Deeds for 2003

 

 

 

 

NEGOTIATED

In Frankfurt am Main on
August 11, 2003

Before me, the
undersigned Notary

 

Ralph Kästner

with the official
residence in Frankfurt am Main

 

appeared today in the office of
Freshfields Bruckhaus Deringer, Taunusanlage 11, 60329 Frankfurt am Main, where
I was present on request of the appeared persons:

  
  	1.	Tim
        Brouwer, company director

        Place of business: Kurfürsten-Anlage 6, 69115 Heidelberg

        Identified by: German identity card
	 	
		acting
        in the following in his name and for Dr Georg Kraus of
        Kurfürsten-Anlage 6, 69115 Heidelberg (in the following referred to
        jointly as "Purchaser") pursuant to a power of attorney dated
        July 31, 2003 which is attached to this deed.
	 	
	2.	Arif
        Karimjee, company director

        Place of business: Stirling House, Surrey Research Park, Guildford, GU2
        7RF, United Kingdom

        Identified by: British passport
	 	
		acting
        in the following not in his own name but

        for the company Sopheon plc, Stirling House, Surrey Research Park,
        Guildford GU2 7RF, United Kingdom (in the following referred to as
        "Seller") pursuant to a power of attorney dated 11 August 2003
        which is attached to this deed.

  

The Notary asked the appearing persons
if he or one of his partners or colleagues was involved in this matter before
the notarisation (§ 3 (1) no.7 Notarization Act). The appearing persons
declared that such involvement does not exist.

The appearing persons requested that
this deed should be recorded in the English language and declared that they are
in sufficient command of the English language . The Notary himself is in
sufficient command of the English language. As advised by the Notary of their
rights to the assistance of a sworn interpreter and receipt of a certified
translation of this deed, the appearing persons waived such rights.

The appearing persons acting as
heretofore indicated then requested the notarization of the attached agreement
and the attached resolution:

- Sale and Transfer Agreement between
Seller and Purchaser (Attachment 1)

***********************************************

 

The above deed including the Attachment
(1) were read aloud to the appearing persons by the Notary, approved by them and
signed by them and the Notary in their own hands as follows:

 

 

__________________________

Signature of Mr Tim Brouwer

 

 

__________________________

Signature of Mr Arif Karimjee

 

 

__________________________

NOTARY

 

 

 

AGREEMENT OF SALE AND
TRANSFER

 

Concerning a
Shareholding

in Sopheon GmbH

 

 

between

 

 

Tim Brouwer & Dr.
Georg Kraus

c/o SVP Deutschland AG

Kurfürsten-Anlage 6, 69115 Heidelberg

Germany

 

- jointly hereinafter
referred to as "Purchasers"

 

and

 

 

Sopheon Plc

Stirling House

Surrey Research Park

Guildford, Surrey

GU2 5RF, United Kingdom

 

- hereinafter referred to
as "Seller"

 

 

 

 

Definitions:

"Agreement"
means this Sale and Transfer Agreement.

"Business
Day" means a day on which commercial banks in Frankfurt am Main (Germany)
and London (England) are open for business.

"Closing" has
the meaning as defined in § 6 (1) of this Agreement.

"Closing
Condition" has the meaning as defined in § 6 (2) of this Agreement.

"Closing
Date" has the meaning as defined in § 6 (1) of this Agreement.

"Shareholding"
means the shareholding ("Geschäftsanteil") Seller holds in the
nominal amount of €25,000.00 (in words: twenty five thousand Euro) in Sopheon,
registered in the Commercial Register of the Lower District Court of Frankfurt
am Main under HR B 51621.

"Sopheon"
means Sopheon GmbH, Industriepark Höchst, Building F 821, 65926 Frankfurt am
Main, Germany.

 

§ 1 Sale and
Purchase of the Share

Seller hereby sells the
Shareholding to Purchasers. Purchasers hereby accepts such sale of the
Shareholding.

 

§ 2 Transfer of the
Shareholding

  
  	(1)	
        Seller hereby
        transfers the Shareholding to Purchasers. Purchasers accept such
        transfer.

      
	 	
	(2)	
        The transfer
        pursuant to subsection (1) is made with commercial effect as of the
        Closing Date. This transfer is subject to the condition precedent that
        the Closing Condition pursuant to § 6 (2) has been met.

	 	
	(3)	
        Purchasers will
        give notice to Sopheon of the share transfer pursuant to § 16 (1) of
        the German Limited Liability Company Act immediately after the Closing.

  

 

§ 3 Purchase Price

The consideration
for the sale and transfer (the "Purchase Price") of the Shareholding
will be €1 (in words: One Euro)

 

§ 4 Covenants and
Warranties of Purchasers

  
  	(1)	Purchasers
        shall change the name of Sopheon such that it does not contain the word
        "Sopheon", in any event before 31 December 2003.
        Notwithstanding the foregoing, Purchasers shall effect such name change,
        if not already effected, prior to the execution of any sale or transfer
        of ownership of its share in Sopheon or of substantially all of Sopheon's
        business activities. Purchasers shall also make best efforts to effect
        such name change, if not already effected, prior to making any
        application for insolvency or liquidation of Sopheon.
	 		
	(2)	Purchasers
        warrant and undertake to Seller that each of the warranties set out
        below is true and accurate and not misleading as at the date of this
        Agreement:
	 		
		a)	all
        necessary authorisations, approvals, consents and licenses required by
        the Purchasers for entering into and performing this Agreement have been
        obtained;
	 		
		b)	this
        Agreement when executed by the Purchasers will constitute a valid and
        binding obligation on Purchasers and will be enforceable in accordance
        with its terms or any provision of Purchasers' memorandum or articles
        of association as applicable; and
	 		
		c)	to
        the best of the knowledge of the Purchasers, there is no litigation or
        governmental proceedings or investigation current or threatened or
        pending against them relating to or affecting the execution, delivery
        and performance of this Agreement.

  

 

§ 5 Covenants and
Warranties of Seller

  
  	(1)	On
        or prior to August 15, 2003, Seller shall pay to Sopheon (the "Intercompany
        Payment") amounts recorded as net intercompany receivables
        totalling €67,587 (in words: Sixty Seven Thousand Five Hundred and
        Eighty-Seven Euros). In addition, on or prior to August 15, 2003, Seller
        will pay to Sopheon (the "Contribution") €100,000 (in words:
        One Hundred Thousand Euros). All amounts payable as of the date of this
        Agreement by Sopheon to the Seller or other members of Seller's
        corporate group have been taken into consideration in the calculation of
        the Intercompany Payment.
	 		
	(2)	
        Seller warrants
        and undertakes to Purchasers that each of the warranties set out below
        is true and accurate and not misleading as at the date of this
        Agreement:

	 		
		a)	all
        necessary authorisations, approvals, consents and licenses required by
        the Seller for entering into and performing this Agreement have been
        obtained;
	 		
		b)	this
        Agreement when executed by the Seller will constitute a valid and
        binding obligation on Seller and will be enforceable in accordance with
        its terms or any provision of Seller's memorandum or articles of
        association as applicable; and
	 		
		c)	to
        the best of the knowledge of the Seller, there is no litigation or
        governmental proceedings or investigation current or threatened or
        pending against it relating to or affecting the execution, delivery and
        performance of this Agreement.
	 		
		d)	
        Sopheon is a
        limited liability company duly organised and validly existing under the
        laws of the Federal Republic of Germany.

	 		
		e)	
        Seller is the
        sole shareholder of Sopheon which has a stated share capital of €25,000
        (in words: Twenty Five Thousand Euros), represented by one capital
        interest in the nominal amount of €25,000. The Seller is the legal and
        beneficial owner of the Shares that are free from any encumbrance and
        third party rights. The Seller may freely dispose of the Shares and does
        not require any consent of a third party and a disposal does not result
        in any infringement of any third party rights. The Shares are fully paid
        in; no refunds of the share contributions, whether actual or
        constructive, were made. There are no shareholders other than the
        Seller.

  

 

§ 6 Closing

  
  	(1)	Pursuant
        to the terms of this Agreement, the consummation of the transactions
        contemplated by this Agreement ("Closing") shall take place no
        later than on Friday August 15, 2003 at 13:00 local time or as the
        parties hereto mutually agree. The date and time at which the Closing
        actually takes place and thus the time at which the transfers
        contemplated by this Agreement actually occur or become effective shall
        be referred to as the "Closing Date" in this Agreement.
	 	
	(2)	
        Closing is
        subject to the payment to Sopheon of the Contribution and the
        Intercompany Payment by Seller (the "Closing Condition") as
        set out in § 5 (1).

  

 

§ 7 General Obligation
of the Parties

The parties to this
Agreement commit each other to use their best efforts to realize the transfer of
the Share from Seller to Purchasers.

 

§
8 Notices

  
  	(1)	
        All notices or
        other communications hereunder shall be in writing, unless a stricter
        form is required by applicable law.

	 			
	(2)	
        All notices or
        communications shall be sent to the following addresses, or to such
        other addresses of which a party may have informed the other party from
        time to time, which change of address shall be effective only when
        received by the other party:

	 			
		a)	
        If to
        Seller:

        Arif Karimjee

        Sopheon Plc

        Stirling House, Surrey Research Park, Guildford, Surrey, GU2 5RF

        United Kingdom

			Telephone:

        Facsimile:	 +
        44 (0) 14 83 88 30 00

         + 44 (0) 14 83 88 30 50
	 			
		b)	If
        to Purchasers:

        Tim Brouwer

        SVP Deutschland AG

        Kurfürsten-Anlage 6, 69115 Heidelberg

        Germany
			Telephone:

        Facsimile:	 +
        49 (0) 6221 16 70 18

         + 49 (0) 6221 18 14 63

  

 

§ 9 Severability

  
  	(1)	
        Should any
        provision of this Agreement be or become invalid, ineffective, or
        unenforceable, the remaining provisions of this Agreement shall be
        valid.

	 	
	(2)	The
        parties agree to replace the invalid, ineffective, or unenforceable
        provision with a valid, effective, and enforceable provision which
        economically best meets the intention of the parties had they foreseen
        the invalidity, ineffectiveness, or unenforceability at that time. The
        same shall apply in the case of an omission or if this Agreement is
        silent.
	 	
	(3)	If
        a provision of this Agreement should be held invalid by a competent
        court or arbitration tribunal because of the scope of its coverage (such
        as territory, subject matter, time period or amount), said provision
        shall not be deemed to be completely invalid but shall be deemed to be
        valid with the permissible scope that is nearest to the originally
        agreed-upon scope.

  

 

§ 10 Entire Agreement

  
  

  
  	(1)	
        This Agreement
        contains the entire agreement and understanding of the parties thereto
        in respect of the transaction contemplated by this Agreement. This
        Agreement supersedes all other prior agreements and understandings, both
        written and oral, among the parties with respect to such transactions,
        provided, however, that such prior agreements and understanding may to
        the extent necessary and appropriate be used in the interpretation of
        this Agreement.

      
	 	
	(2)	
        There are no
        restrictions, promises, representations, warranties, covenants or
        undertakings, other than those expressly set forth or referred to
        herein.

      
	 	
	(3)	
        Any changes of
        this Agreement have to be made in writing unless a stricter form is
        required by applicable law.

      
	 	
	(4)	
        This Agreement
        has been made in the English language.

  

 

§ 11 Applicable Law

This Agreement shall be
governed by and construed in accordance with the laws of the Federal Republic of
Germany (regardless of the laws that might otherwise govern under applicable
principles of conflicts of law thereof) as to all matters, including but not
limited to, matters of validity, construction, effect, performance and remedies.

 

§ 12 Costs, Fees, and
Expenses

  
  	(1)	Each
        Party shall bear the cost of its own legal and other advisors, bank
        charges and other directly incurred incidental expenses that arise in
        connection with its execution of this Agreement and the performance of
        its obligations hereunder.
	 	
	(2)	Sopheon
        shall bear any transfer taxes, sales taxes, notary fees, government
        approvals and other third party expenses that arise in connection with
        the execution and consummation of this Agreement.

  

 

 

  
  	Frankfurt am Main,
        August 11, 2003	____________________________________
		Seller

        By: Mr Arif Karimjee, for and on behalf of Seller
	 
         

      	
	Frankfurt am Main,
        August 11, 2003	____________________________________
		
        Purchasers

        By: Tim Brouwer himself for himself and Tim Brouwer by authorisation for
        Dr. Georg Kraus, for and on behalf of Purchasers

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]