Document:

exv4w3

Exhibit 4.3

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED OR
PLEDGED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPTION OF COUNSEL
(WHICH MAY BE COUNSEL FOR THE COMPANY) REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR
TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

SERIES A PREFERRED STOCK WARRANT

of

NOVASONICS, INC.

     THIS CERTIFIES THAT GLEN McLAUGHLIN (“Warrantholder”) is entitled to subscribe for and
purchase from NOVASONICS, INC., a California corporation (the “company”), 21,333 fully-paid and
non-assessable shares of the Company’s Series A Preferred Stock (the “Preferred”), at a price of
$0.75 per share (the “Warrant Price”), such price and such number of shares being subject to
adjustment upon the occurrence of the contingencies set forth in this Warrant. This Warrant is
granted in connection with the extension of a certain equipment lease line dated October 31, 1999
between the Company and Venture Leasing Associates for a consideration of $10.00.

     Upon delivery of this Warrant, together with payment of the Warrant Price of the shares of the
Preferred thereby purchased, at the principal office of the Company or at such other office or
agency as the Company may designate by notice in writing to the holder hereof, the holder of this
Warrant shall be entitled to receive a certificate or certificates for the shares of Preferred so
purchased. The date at which the Company receives (i) the Warrant and (ii) payment for the shares
of Preferred, either by payment in cash or by check, or by notice of the Warrantholder’s intent to
use the proceeds from the sale of shares at a public offering of securities pursuant to a
registration statement filed by the Company under the Act (as defined below) (a “Public Offering”)
or notice of intent to use shares of Preferred as payment, both as described in Section 1 below, or
such later date as such notice shall specify, shall be referred to herein as the “Exercise Date”.
All shares of Preferred which may be issued upon the exercise of this Warrant will, upon issuance,
be fully paid and non-assessable and free from all taxes, liens and charges with respect thereto,
other than taxes, liens and charges that may be imposed on the shares of Preferred by the
Warrantholder.

     This Warrant is subject to the following terms and conditions:

	 	1.	 	Exercise of Warrant: Subject to the terms and conditions set forth herein, this Warrant may
be exercised in whole or in part, at any time on or before October 31, 2009, by the
surrender of this Warrant at the principal office of the Company and by the
payment to the Company, in the manner provided for in the following paragraph,
of the Warrant Price for all of the Preferred purchased.

 

 

     This Warrant may be exercised by the payment to the Company, by cash or check,
or from the proceeds of the sale of shares of Common Stock issued upon the
conversion of shares of Preferred issued upon exercise of this Warrant sold by the
Warrantholder pursuant to a Public Offering of an amount equal to the aggregate
Warrant Price of the shares being purchased. In lieu of exercising this Warrant as
described above, the Warrantholder may elect to receive shares equal to the value
(as determined below) of this Warrant (or the portion thereof being exercised) by
surrender of this Warrant at the principal office of the Company together with
notice of such election (which notice shall include the number of shares being
exercised hereunder), in which event the Company shall issue to the Warrantholder a
number of shares of Preferred (or Common Stock if the Preferred has been converted
into Common Stock) equal to the quotient obtained by dividing (x) the value of the shares of Preferred being exercised (the “Exercised Shares”) on the Exercise Date,
which value shall be determined by subtracting (A) the aggregate Warrant Price of
the Exercised Shares immediately prior to the exercise of the Warrant from (B) the
aggregate fair market value of the Exercised Shares on the Exercise Date, by (y) the
fair market value of one share of Preferred (or Common Stock if the Preferred has
been converted into Common Stock) as of the Exercise Date. No fractional shares
shall be issuable upon exercise of this Warrant, and if the number of shares to be
issued determined in accordance with the foregoing formula is other than a whole
number, the Company shall pay to the Warrantholder an amount in cash equal to the
fair market value of the resulting fractional share on the Exercise Date.

     This Warrant may be exercised upon (i) the closing of an initial Public
Offering, subject to the restrictions set forth in the Rights Agreement dated June
11, 1999 among the Company and certain investors, as amended (the “Rights
Agreement”), (ii) the closing of any consolidation or merger of the Company with or
into any other unaffiliated corporation, entity or person, or any other
reorganization in which the Company shall not be the continuing or surviving entity
of such consolidation, merger or reorganization, or (iii) the sale of all or
substantially all of the assets of the Company. The Company shall notify the
Warrantholder if an event or transaction of the kind described in this paragraph is
proposed at lease fifteen days prior to the closing of such event or transaction;
such notice shall also contain such details of the proposed event or transaction as
are reasonable in the circumstances.

     Certificates for the shares issuable upon exercise of this Warrant and, if
applicable, a new warrant evidencing the balance of the shares remaining subject to
this Warrant shall be issued as of the Exercise Date and shall be delivered to the
Warrantholder, or as such Warrantholder may direct (subject to the restrictions upon
transfer contained herein and upon payment by such Warrantholder of any applicable
transfer taxes) within thirty days following the Exercise Date.

     For purposes of this Section 1, the fair market value of one share of the
Preferred (or Common Stock if the Preferred has be converted into Common Stock)
shall be determined as follows:

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	 	(i)	 	If this Warrant is exercised in connection with
and contingent upon a Public Offering, and if the Company’s
registration statement relating to such Public Offering has been
declared effective by the Securities and Exchange Commission, then the
fair market value shall be the initial “Price to Public” per share
specified in the final prospectus with respect to such offering.
	 
	 	(ii)	 	If this Warrant is exercised in connection with
a merger, consolidation or sale of substantially all assets of the
Company, then the fair market value per share shall be equal to the sum
of all cash, stock and other consideration received by the Company,
divided by the number of outstanding shares of the Company’s Capital
stock.
	 
	 	(iii)	 	If this Warrant is not exercised in connection
with (i) or (ii) above, then the fair market value shall be determined
in good faith by the Company’s Board of Directors and the Lessor if
such exercise occurs prior to the Company’s initial Public Offering.
Following the Company’s initial Public Offering, the fair market value
per share shall be the average of the closing sale prices of the
Company’s Common Stock as quoted on the New York Stock Exchange (or the
closing price on any exchange on which the Common Stock may be listed
at the time of exercise of this Warrant or the closing price as
reported by the NASDAQ National Market System at that time) as
published in The Wall Street Journal for the ten trading days prior to
the date of determination of the market value.

	 	2.	 	Transfer of Warrant. Except in accordance with the conditions contained in Section 3 hereof, this
Warrant and all rights hereunder are not transferable.
	 
	 	3.	 	Condition of Transfer or Exercise of Warrant. It shall be a condition to any transfer or exercise of this Warrant that the
Company shall have received, at the time of such transfer or exercise, a
representation in writing that this Warrant (or portion hereof transferred) or the shares of Preferred or other securities being issued upon such exercise, as the case
may be, are being acquired for the investment not with a view to any sale or
distribution thereof, or a statement of the pertinent facts covering any proposed
distribution thereof. It shall be a further condition to any transfer of this
Warrant or of any or all of the shares of Preferred issued upon exercise of this
Warrant, or Common Stock issued upon conversion of the Preferred, other than a transfer
registered under the Securities Act of 1933, as amended (the “Act”), that the
Company shall have received a legal opinion, in form and substance satisfactory to
the Company and its counsel, reciting the pertinent circumstances surrounding the
proposed transfer and stating that such transfer is exempt form the prospectus and
the registration requirements of the Act. The requirement of a legal opinion shall
not apply to the transfer of this Warrant or any part thereof to a partnership of
which the Warrantholder is a

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	 	 	 	partner or to the beneficial owners of such partnership
without further consideration, so long as such transfer is in compliance with
applicable securities laws. Each certificate evidencing the shares of Preferred
issued upon exercise of this Warrant, or Common tock issued upon conversion of the
Preferred, or upon any transfer of such shares (other than a transfer registered
under the Act or any subsequent transfer of shares so registered) shall, at the
option of the Company, contain a legend, in form and substance satisfactory to the
Company and its counsel, restricting the transfer of such shares to sales or other
dispositions exempt from the requirements of the Act.

     It shall be a further condition to each such transfer that the transferee shall
receive and accept a Warrant, of like tenor and date, executed by the Company.

	 	4.	 	Adjustment of Warrant Price and Number of Shares Purchasable Hereunder. The Warrant Price and the number of shares purchasable hereunder shall be
subject to adjustment from time to time in accordance with the following provisions:

	 	(a)	 	Subdivisions or Combinations. In case the Company shall at any time subdivide the outstanding shares of
its Preferred Stock, the Warrant Price in effect immediately prior to such
subdivision shall be proportionately decreased, and in case the Company
shall at any time combine the outstanding shares of its Preferred Stock, the
Warrant Price in effect immediately prior to such combination shall be
proportionately increased, effective at the close of business on the date of
such subdivision or combination, as the case may be.
	 
	 	(b)	 	Stock Dividends. In case the Company shall at any time pay a dividend with respect to
Preferred payable in Preferred, then the Warrant Price in effect immediately
prior to the record date for distribution of such dividend shall be adjusted
to that price determined by multiplying the Warrant Price in effect
immediately prior to such record date by a fraction (i) the numerator of
which shall be the total number of shares of Preferred outstanding
immediately prior to distribution of such dividend and (ii) the denominator
of which shall be the total number of shares of Preferred outstanding
immediately after distribution of such dividend.
	 
	 	(c)	 	Number of Shares. Upon each adjustment pursuant to subdivisions (a) or (b) of this
Section 4, the registered holder of this Warrant shall thereafter (until
another such adjustment) be entitled to purchase, at the adjusted Warrant
Price, the number of shares of Preferred, calculated to the nearest full
share, obtained by multiplying the number of shares of Preferred purchasable
hereunder immediately prior to such adjustment by the Warrant Price in
effect prior to such adjustment and dividing the product so obtained by the
adjusted Warrant Price.
	 
	 	(d)	 	Reclassification. In case of any reclassification, change or conversion of securities of
the class or series issuable upon exercise of this Warrant

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	 	 	 	(other than as a result of an event described in Section 4(a) and 4(b) above), or any
consolidation or merger of the Company with another corporation, or the sale
of all or substantially all of its assets to another corporation, the
Company, or such successor or purchasing corporation, as the case may be,
shall duly execute and deliver to the Warrantholder a new warrant so that
the Warrantholder shall have the right to receive, at a total purchase price
not to exceed that payable upon the exercise of the unexercised portion of
this Warrant, and in lieu of the shares of Preferred theretofore issuable
upon exercise of this Warrant, the kind and amount of shares of stock, other
securities, money and property receivable upon such reclassification, change
or conversion or consolidation, merger or sale of assets by a holder of the
number of shares of Preferred than purchasable under this Warrant. Such new
warrant shall provide for adjustments that shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Section 4. The
provisions of this subparagraph (d) shall similarly apply to successive
reclassifications, changes, and conversions.
	 
	 	(e)	 	Antidilution Rights. The antidilution rights applicable to the Preferred and the Common Stock
of the Company are set forth in the Articles of Incorporation (the
“Articles”), as amended from time to time, a true and complete copy in its
current form which is attached hereto as Exhibit A. The Company shall
promptly provide the Warrantholder hereof with any restatement, amendment or
modification to the Articles promptly after the same has been made.

	 	5.	 	Notices.

	 	(a)	 	Upon any adjustment of the Warrant Price and any increase or
decrease in the number of shares of Preferred purchasable upon the exercise of
this Warrant, then, and in each such case, the Company, within thirty (30) days
thereafter, shall give written notice thereof to the registered holder of this
Warrant at the address of such holder as shown on the books of the Company
which notice shall state the Warrant Price as adjusted and the increased or
decreased number of shares purchasable upon the exercise of this Warrant,
setting forth in reasonable detail the method of calculation of each.
	 
	 	(b)	 	In the event that the Company shall propose at any time to
effect a Public Offering of the Company’s Common Stock pursuant to an effective
registration statement under the Act, the Company shall send to the
Warrantholder at least twenty days’ prior written notice of the date when the
same is anticipated to take place; provided, however, that the failure to give
such notice shall not give the Warrantholder the right to delay or otherwise
restrain or affect the Public Offering. Such written notice may be in lieu of
the notice required under the third paragraph of Section 1 and shall be given
by first class mail, postage prepaid, addressed to the

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	 	 	 	Warrantholder at the address as shown on the books of the Company for the Warrantholder.

	 	6.	 	Registration. The Warrantholder shall be entitled to the registration rights as set forth in
the Rights Agreement, provided that the Warrantholder agrees in writing to be bound
by such provisions.
	 
	 	7.	 	Representations of Warrantholder. Concurrently with the receipt of this Warrant, the Warrantholder shall have
executed the Investment Representation Statement in the form attached hereto as
Exhibit B.
	 
	 	8.	 	Representations and Warranties of the Company. The Company represents and warrants to the Warrantholder, as of the Effective
Date set forth below, as follows:

	 	(a)	 	This warrant has be duly authorized and executed by the Company
and is a valid and binding obligation of the Company, enforceable in accordance
with its terms except as to (i) the effect of applicable bankruptcy and similar
laws affecting the rights of creditors, and (ii) the effect of rules of law
governing specific performance, injunctive relief and other equitable remedies.
	 
	 	(b)	 	The Preferred has been duly authorized and reserved for
issuance by the Company and, when issued in accordance with the terms hereof,
will be validly issued, fully paid and non-assessable and free from all taxes, liens
and charges with respect to the issue of such shares, other than taxes,
liens and charges imposed by the Warrantholder.
	 
	 	(c)	 	The rights, preference, privileges and restrictions granted to
or imposed upon the Preferred and the holders thereof are set forth in the
Articles, and the Preferred Stock and Warrant Purchase Agreement, dated June
11, 1999 and the Rights Agreement, true and complete copies of which have been
delivered to the Warrantholder.
	 
	 	(d)	 	The execution and delivery of this Warrant is not, and the
issuance of the Preferred upon exercise of this Warrant in accordance with the
terms hereof is not, inconsistent with the Company’s Articles of Incorporation
or Bylaws, does not contravene any material law, governmental rules or
regulation, judgment or order applicable to the Company, and does not conflict
with or contravene any provision of, or constitute a default under, any
material indenture, mortgage, contract or other instrument of which the Company
is a party or by which it is bound or require the consent or approval of, the
giving of notice to, the registration or filing with or the taking of any
action in respect of or by, any federal, state or local government authority or
agency or other person, other than state or federal securities law filings.

6

 

	 	(e)	 	During the period within which this Warrant may be exercised,
the Company will at all times have authorized and reserved for the purpose of
the issue upon exercise of this Warrant a sufficient number of shares of its
Preferred to provide for the exercise of this Warrant and a sufficient number
of shares of its Common Stock to provide for the conversion of the Preferred
into Common Stock.

	 	9.	 	Miscellaneous.

	 	(a)	 	The terms of this Warrant shall be binding upon and shall inure
to the benefit of any successors or assigns of the Company and of the holder or
holders hereof and of the Preferred issued or issuable upon the exercise
hereof, and all of the obligations of the Company relating to the Preferred
issuable upon exercise of this Warrant shall survive the exercise of this
Warrant.
	 
	 	(b)	 	No holder of this Warrant, as such, shall be entitled to vote
or receive dividends or be deemed to be a shareholder of the Company for any
purpose, nor shall anything contained in this Warrant be construed to confer
upon the holder of this Warrant, as such, any rights of a shareholder of the
Company or any right to vote, give or withhold consent to any
corporate action, receive notice of meetings, receive dividends or
subscription rights, or otherwise.
	 
	 	(c)	 	Receipt of this Warrant by the holder hereof shall constitute
acceptance of and agreement to the foregoing terms and conditions.
	 
	 	(d)	 	The Company will not, by amendment of it Articles of
Incorporation or through any other means, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of
all such action as may be necessary or appropriate in order to protect the
rights of the holder of this Warrant against impairment.
	 
	 	(e)	 	Upon receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and, in the case
of any such loss, theft or destruction, upon delivery of an indemnity agreement
reasonably satisfactory in form and amount to the Company, or in the case of
any such mutilation, upon surrender and cancellation of such Warrant, the
Company will execute and deliver, in lieu thereof, a new Warrant of like date
and tenor.
	 
	 	(f)	 	This Warrant shall be governed by, construed and enforced in
accordance with the laws of the State of California, as applied to agreements
made and performed in California by residents of the State of California.
	 
	 	(g)	 	The Warrantholder shall be entitled to receive such financial
and other information as set forth in the Rights Agreement.

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     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized
officer.

	 	 	 	 	 	 	 
	Effective Date of Warrant: October 31, 1999  	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	COMPANY: NOVASONICS, INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Mir Imran	 	 	 	 
	 	 	   	 	 
	 
	 	 	 	 	 	 
	Title:

	 	President	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Accepted and Agreed:	 	 
	 
	 	 	 	 	 	 
	WARRANTHOLDER: GLEN McLAUGHLIN	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Glen McLaughlin
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 	 	 	 	 

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EXHIBIT A

NOTICE OF ELECTION

Ladies and Gentlemen:

The undersigned warrantholder (the “Warrantholder”) hereby elects to exercise that certain Series
___ Preferred Stock Warrant (the “Warrant”) by and between the Warrantholder and the Company,
dated                     , by surrendering the Warrant at the principal office of the Company, in
exchange for ___ shares of Common Stock of                     .

The Warrantholder hereby confirms and acknowledges the investment representations and warranties
made in Section 8 of the Warrant, a copy of which is available from the Company, and accepts such
shares subject to the restrictions of the Warrant.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	WARRANTHOLDER:	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	(Signature)	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	(Typed or Printed Name)	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	(Title)	 	 
	 
	 	 	 	 
	Address:	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

 

 

EXHIBIT B

INVESTMENT REPRESENTATION STATEMENT

	 	 	 
	 

	 	Warrants to Purchase
	 

	 	___ Shares of Series
___ Preferred
	 

	 	Stock of                     

     In connection with the purchase of the above-listed securities the undersigned hereby
represents to                                          (the “Company”) as follows:

     Receipt of Information. The undersigned has received all the information it considers
necessary or appropriate for deciding whether to purchase the Preferred Stock issuable upon
exercise of the Warrant dated                      (the “Warrant”) issued by the Company to the
undersigned, and it has examined any information furnished to it by the Company in connection
therewith.

     Investment Representation.

(a) The shares of Stock to be received by the undersigned upon exercise of the Warrant (the
“Securities”) will be acquired for investment for its own account, not as a nominee or
agent, and not with a view to the sale or distribution of any part thereof, and the
undersigned has no present intention of selling, granting participation in or otherwise
distributing the same, but subject, nevertheless, to any requirement of law that the
disposition of its property shall at all times be within its control. By executing this
Statement, the undersigned further represents that it does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer, or grant
participations to such person or to any third person, with respect to any Securities
issuable upon exercise of the Warrant.

(b) The undersigned understands that the Securities issuable upon exercise of the Warrant at
the time of issuance may not be registered under the Securities Act of 1933, as amended (the
“Act”), and applicable state securities laws, on the ground that the issuance of such
securities is exempt pursuant to Section 4(2) of the Act and state law exemptions relating
to offers and sales not by means of a public offering, and that the Company’s reliance on
such exemptions is predicated on the undersigned’s representations set forth herein. The
undersigned is an “Accredited Investor” as such term is defined in Rule 501 of the
Securities and Exchange Commission.

(c) The undersigned agrees that in no event will it make a disposition of any Securities
acquired upon the exercise of the Warrant unless and until (i) it shall have notified the
Company of the proposed disposition and shall have furnished the Company with a statement of
the circumstances surrounding the proposed disposition, and (ii) it shall have furnished the
Company with an opinion of counsel satisfactory to the Company and the Company’s counsel to
the effect that (a) appropriate action necessary for compliance with the Act and any
applicable state securities laws has been taken or an

 

 

exemption from the registration requirements of the Act and such laws is available, and
(b) that the proposed transfer will not violate any of said laws.

(d) The undersigned represents that it is able to fend for itself in the transactions
contemplated by this Statement, has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investments, and has the
ability to bear the economic risks (including the risk of a total loss) of its investment.
The undersigned represents that it has had the opportunity to ask questions of the Company
concerning the Company’s business and assets and to obtain any additional information which
it considered necessary to verify the accuracy of or to amplify the Company’s disclosures,
and has had all questions which have been asked by it satisfactorily answered by the
Company.

(e) The undersigned acknowledges that the Securities issuable upon exercise of the Warrant
must be held indefinitely unless subsequently registered under the Act or an exemption from
such registration is available. The undersigned is aware of the provisions of Rule 144
promulgated under the Act which permit limited resale of shares purchased in a private
placement subject to the satisfaction of certain conditions, including, among other things,
the existence of a public market for the shares, the availability of certain current public
information about the Company, the resale occurring not less than one year after a party has
purchased and paid for the security to be sold, the sale being through a “broker’s
transaction” or in transactions directly with a “market maker” (as provided by Rule 144(f))
and the number of shares being sold during any three-month period not exceeding specified
limitations. The undersigned is aware that the conditions for resale set forth in Rule 144
have not been satisfied.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	(Signature)	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	(Typed or Printed Name)	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	(Title)	 	 

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STOCK WARRANT ASSIGNMENT

     FOR VALUE RECEIVED, Glen McLaughlin, the holder of a Series A Preferred Stock Warrant dated
October 31, 1999 (the “Warrant”) to purchase capital stock of NOVASONICS, INC. (the “Company”)
hereby transfers and assigns one-half thereof to each of Helen E. McLaughlin O’Rourke and Glen
Wallace McLaughlin, giving each of them separately the right to purchase one-half of the shares
purchasable in accordance with the terms of the Warrant.

     The undersigned transferees, each represent and warrant that they are acquiring their
respective one-half interests in the Warrant for investment purposes only, and not with a view to
the further sale or distribution thereof, and that they are accredited investors and subject to the
terms and obligations of the Warrant.

     The undersigned request that Company register each of them as owners of their one-half of the
Warrant on its books in the following names:

	 	 	 	 	 	 	 	 	 	 	 
	Helen E. McLaughlin O’Rourke	 	 	 	Glen Wallace McLaughlin	 	 
	14016 Camino Barco	 	 	 	14016 Camino Barco	 	 
	Saratoga, CA 95070-5661	 	 	 	Saratoga, CA 95070-5661	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ Helen E. McLaughlin O’Rourke
 

	 	 	 	Signature:
	 	/s/ Glen W. McLaughlin
 

	 	 

     All notices respecting the Warrant should be sent to:

Venture Asset Management, Inc.

1657 N. California Blvd., Suite 201

Walnut Creek, CA 94596

Attention: Jeremy D. Weinstein

SIGNATURE OF HOLDER/TRANSFEROR

     WITNESS MY HAND this 31st day of October, 1999

	 	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Glen McLaughlin	 	 
	 

	 	 	 	 

Glen McLaughlin
	 	 

 

CONSENT OF COMPANY

     The foregoing transfer and assignment is consented to by the Company. Company agrees to take
such further action, and execute such further documents, as are necessary to accomplish the intent
and purpose hereof.

	 	 	 	 	 
	Novasonics, Inc

	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mir Imran	 	 
	 

	 	 

	 	 
	Its:

	 	Presidenet and CEO	 	 
	 

	 	 

	 	 

2exv4w4

Exhibit 4.4

WARRANT

TO PURCHASE SHARES OF SERIES C PREFERRED STOCK

OF

Novasonics, Inc.

A Delaware Corporation

THIS WARRANT HAS BEEN, AND THE SHARES OF SERIES C PREFERRED STOCK WHICH MAY BE PURCHASED PURSUANT
TO THE EXERCISE OF THIS WARRANT (THE “WARRANT SHARES”) WILL BE, ACQUIRED SOLELY FOR INVESTMENT AND
NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF. NEITHER THIS
WARRANT NOR THE WARRANT SHARES (TOGETHER, THE “SECURITIES”) HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH
REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
DISPOSITION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES
ACT AND OF ANY APPLICABLE STATE SECURITIES LAWS.

			
	 	 	 
	Warrant No.: SCW – 1
	 	Issuance Date: May 14, 2002

THIS CERTIFIES THAT, for value received, Pentech Financial Services, Inc. (the “Holder”) is
entitled to subscribe for and purchase from Novasonics, Inc., a Delaware Corporation (the
“Company”), 55,000 fully paid and nonassessable shares (as adjusted pursuant to Section 2 hereof)
(the “Warrant Shares”) of Series C Preferred Stock of the Company (“Series C Preferred Stock”) at
the purchase price of $1.75 per share (as adjusted pursuant to Section 2 hereof) (the “Exercise
Price”), upon the terms and subject to the conditions hereinafter set forth:

1. EXERCISE RIGHTS.

     (a) Cash Exercise. The purchase rights represented by this Warrant may be exercised
by the Holder at any time and from time to time during the term hereof, in whole or in part, by
delivery to the principal offices of the Company of this Warrant and a completed and duly executed
Notice of Cash Exercise, in the form attached as Exhibit “A” hereto, accompanied by payment to the
Company of an amount equal to the Exercise Price then in effect multiplied by the number of Warrant
Shares to be purchased by the Holder in connection with such cash exercise of this Warrant, which
amount may be paid, at the election of the Holder, by wire transfer or delivery of a certified
check payable to the order of the Company.

     (b) Net Issue Exercise.

          (i) In lieu of exercising the purchase rights represented by this Warrant on a cash basis
pursuant to Section 1(a) hereof, the Holder may elect to exercise such rights represented by this
Warrant at any time and from time to time during the term hereof, in whole or in part, on a
net-issue basis by electing to receive the number of Warrant Shares which are equal in value to the
value of this Warrant (or any portion thereof to be canceled in connection with such net-issue
exercise) at the time of any such net-issue exercise, by delivery to the principal offices of the
Company of this Warrant and a completed and duly executed Notice of Net-Issue Exercise, in the form
attached as Exhibit “B” hereto, properly marked to indicate (A) the number of Warrant Shares to be
delivered to the Holder in connection with such net-issue exercise, (B) the number of Warrant
Shares with respect to which the Warrant is being surrendered in payment of the aggregate Exercise
Price for the Warrant Shares to be delivered to the Holder in connection with such net-issue
exercise, and (C) the number of Warrant Shares which remain subject to the Warrant after such
net-issue exercise, if any (each as determined in accordance with Section 1(b)(ii) hereof).

 

 

          (ii) In the event that the Holder shall elect to exercise the rights represented by this
Warrant in whole or in part on a net-issue basis pursuant to this Section 1(b) the Company shall
issue to the Holder the number of Warrant Shares determined in accordance with the following
formula:

	 	 	 	 	 	 	 	 	 
	 

	 	X
	 	=
	 	Y (A-B)
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	A	 	 

          X = the number of Warrant Shares to be issued to the Holder in connection with such net-issue
exercise.

          Y = the number of Warrant Shares purchasable under this Warrant or the portion of the Warrant
being exercised in connection with such net-issue exercise.

          A = the Fair Market Value of one share of Series C Preferred Stock.

          B = the Exercise Price in effect as of the date of such net-issue exercise (as adjusted
pursuant to Section 2 hereof.)

     (c) Fair Market Value. For purposes of this Section 1, the “Fair Market Value” of the
Series C Preferred Stock shall have the following meanings:

          (i) If the Series C Preferred Stock is not listed for trading on a national securities
exchange or admitted for trading on a national market system, then the Fair Market Value of the
Series C Preferred Stock shall be deemed to be the fair market value of Series C Preferred Stock as
determined in good faith from time to time by the Board of Directors of the Company (the “Board of
Directors”), and receipt and acknowledgement of this Warrant by the Holder shall be deemed to be an
acknowledgment and acceptance of any such determination of the fair market value of Series C
Preferred Stock by the Board of Directors as the final and binding determination of such fair
market value of purposes of this Warrant.

          (ii) In the event that the Warrant is being exercised for shares of the Company’s common stock
pursuant to Section 2.(a)(iv) hereof at the time the Company’s common stock is listed for trading
on a national securities exchange or admitted for trading on a national market system, or closing
bid and asked prices therefor are published in the Over-the-Counter Summary in the Western Edition
of The Wall Street Journal, then the per share Fair Market Value of the common stock for which the
Warrant is being exercised shall be deemed to be the closing price quoted on such national
securities exchange or such national market system, or if not so listed, the average of the closing
bid and asked prices for the Company’s common stock quoted on the Over-the-Counter Summary, for the
ten (10) trading days prior to the date of determination of Fair Market Value in accordance
herewith.

     (d) Additional Conditions to Exercise of Warrant. Unless there is a registration
statement declared or ordered effective by the Securities and Exchange Commission (the
“Commission”) under the Securities Act which includes the Warrant Shares to be issued upon the
exercise of the rights represented by this Warrant, such rights may not be exercised unless and
until:

          (i) the Company shall have received an Investment Representation Statement in the form
attached as Exhibit “C” hereto, certifying that, among other things, the Warrant Shares to be
issued upon the exercise of the rights represented by this Warrant are being acquired for
investment and not with a view to any sale or distribution thereof; and

          (ii) each certificate evidencing the Warrant Shares to be issued upon the exercise of the
rights represented by this Warrant shall be stamped or imprinted with a legend substantially in the
following form:

2

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”)
AND ARE “RESTRICTED SECURITIES” AS DEFINED IN RULE 144 PROMULGATED
UNDER THE SECURITIES ACT. SUCH SECURITIES MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISTRIBUTED EXCEPT (i)
PURSUANT TO A REGISTRATION STATEMENT DECLARED OR ORDERED EFFECTIVE
BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT
COVERING SUCH SECURITIES, OR (ii) IN COMPLIANCE WITH RULE 144, OR
(iii) PURSUANT TO AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
OF SUCH SECURITIES THAT SUCH REGISTRATION OR RULE 144 COMPLIANCE IS
NOT REQUIRED UNDER THE SECURITIES ACT AS TO SUCH SALE, OFFER OF
SALE, PLEDGE, HYPOTHECATION OR OTHER DISTRIBUTION. THIS CERTIFICATE
MUST BE SURRENDERED TO THE ISSUER HEREOF OR ITS TRANSFER AGENT AS A
CONDITION PRECEDENT TO THE TRANSFER OF ANY INTEREST IN THE
SECURITIES REPRESENTED HEREBY.

     (e) Fractional Shares. Upon the exercise of the rights represented by this Warrant,
the Company shall not be obligated to issue fractional shares of Series C Preferred Stock, and in
lieu thereof, the Company shall pay to the Holder an amount in cash equal to the Fair Market Value
per share of Series C Preferred Stock immediately prior to such exercise multiplied by such
fraction (rounded to the nearest cent).

     (f) Record Ownership of Warrant Shares. The Warrant Shares shall be deemed to have
been issued, and the person in whose name any certificate representing Warrant Shares shall be
issuable upon the exercise of the rights represented by this Warrant (as indicated in the
appropriate Notice of Exercise) shall be deemed to have become the holder of record of (and shall
be treated for all purposes as the record holder of) the Warrant Shares represented thereby,
immediately prior to the close of business on the date or dates upon which the rights represented
by this Warrant are exercised in accordance with the terms hereof.

     (g) Stock Certificates. In the event of any exercise of the rights represented by
this Warrant, certificates for the Warrant Shares so purchased pursuant hereto shall be delivered
to the Holder within a reasonable time and, unless this Warrant has been fully exercised or has
expired, a new Warrant representing the Warrant Shares with respect to which this Warrant shall not
have been exercised shall also be issued to the Holder within such time.

     (h) Issue Taxes. The issuance of certificates for shares of Series C Preferred Stock
upon the exercise of the rights represented by this Warrant shall be made without charge to the
Holder for any issuance tax in respect thereof, provided, however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved in the issuance
and delivery of any certificate in a name other than that of the Holder of the Warrant.

2. ADJUSTMENT RIGHTS.

     (a) Right to Adjustment. The number of Warrant Shares purchasable upon the exercise
of the rights represented by this Warrant, and the Exercise Price therefor, shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows:

          (i) Reclassifications. In the event of a reclassification of the Series C Preferred
Stock other than by stock split, subdivision, consolidation or combination thereof, the Company
shall execute a new Warrant, the terms of which provide that the holder of this Warrant shall have
the right to exercise the rights represented by such new Warrant, and procure upon such exercise
and payment of

3

 

the same aggregate Exercise Price then in effect, in lieu of the shares of Series C Preferred
Stock theretofore issuable upon exercise of the rights represented by this Warrant, the kind and
amount of shares of stock, other securities, money and property receivable upon such
reclassification by a holder of an equivalent number of shares of Series C Preferred Stock. Such
new Warrant shall provide for adjustments, which are as equivalent as practicable to the
adjustments provided for in this Section 2. The provisions of this Section 2(a)(i) shall apply
with equal force and effect to all successive reclassifications of the Series C Preferred Stock.

          (ii) Stock Splits, Dividends, Combinations and Consolidations. In the event of a
stock split, stock dividend or subdivision of or in respect of the outstanding shares of Series C
Preferred Stock, the number of Warrant Shares issuable upon the exercise of the rights represented
by this Warrant immediately prior to such stock split, stock dividend or subdivision shall be
proportionately increased and the Exercise Price then in effect shall be proportionately decreased,
effective at the close of business on the date of such stock split, stock dividend or subdivision,
as the case may be. In the event of a reverse stock split, consolidation, combination or other
similar event of or in respect of the outstanding shares of Series C Preferred Stock, the number of
Warrant Shares issuable upon the exercise of the rights represented by this Warrant immediately
prior to such reverse stock split, consolidation, combination or other similar event shall be
proportionately decreased and the Exercise Price shall be proportionately increased, effective at
the close of business on the date of such reverse stock split, consolidation, combination or other
similar event, as the case may be.

          (iii) Mergers and Consolidations: Sales of Assets or Stock. In the event of (1) a
merger or consolidation of the Company with or into another corporation, limited liability company,
general or limited partnership, joint venture, association or other legal entity (other than a
merger or consolidation pursuant to which the Company is the surviving corporation and the
shareholders of the Company immediately preceding such merger or consolidation continue to own at
least fifty percent (50%) of the capital stock of the Company entitled to vote following the
closing of such merger or consolidation and which does not result in any reclassification of the
Warrant Shares issuable upon the exercise of the rights represented by this Warrant, or (2) the
sale of all or substantially all of the assets or capital stock of the Company), the Company, or
any successor corporation or other legal entity, as the case may be, shall execute a new Warrant,
the terms of which provide that the holder of this Warrant shall have the right to exercise the
rights represented by such new Warrant, and procure upon such exercise and payment of the same
aggregate Exercise Price then in effect, in lieu of the shares of Series C Preferred Stock
theretofore issuable upon exercise of the rights represented by this Warrant, the kind and amount
of shares of stock, other securities, money and property receivable upon such merger, consolidation
or sale of assets or capital stock by a holder of an equivalent number of shares of Series C
Preferred Stock. Such new Warrant shall provide for adjustments, which are as equivalent as
practicable to the adjustments provided for in this Section 2. The provisions of this Section
2(a)(iii) shall apply with equal force and effect to all successive mergers, consolidations and
sales of assets and capital stock of the Company.

          (iv) In the event of any merger, consolidation or sale of assets as described in paragraph
2.a.(iii) above, or the Company’s initial public offering, the Company shall have the option to
purchase this Warrant immediately prior to the closing date of such event for a per share price
equal to the greater of the Fair Market Value of a Warrant Share or five (5) times the Exercise
Price ($8.75); provided, however, that such option to purchase shall not be exercisable to the
extent that the Holder exercises this Warrant in connection with such merger, consolidation or
asset sale; provided further, however, that such option to purchase shall not be exercisable if in
connection with such merger, consolidation or asset sale all other warrants to acquire securities
of the Company will not expire and/or terminate, whether by their terms, complete exercise by the
holders thereof or the exercise of purchase rights by the Company. The Fair Market Value of each
Warrant Share shall be determined according to Section 1, above.

          (v) Conversion of Preferred Stock. Notwithstanding anything to the contrary contained
in this Warrant, in the event that all outstanding shares of the Company’s Series C Preferred Stock
are converted into Common Stock pursuant to the Company’s Certificate of Incorporation or

4

 

otherwise, this Warrant shall thereafter entitle the Holder to receive upon exercise that
number of shares of Common Stock into which the Warrant Shares otherwise issuable on exercise of
this Warrant would have been convertible at the time of such exercise, subject to the adjustments
of this Section 2.

     (b) Adjustment Notices. Upon any adjustment of the Exercise Price, and any increase
or decrease in the number of Warrant Shares subject to this Warrant, in accordance with this
Section 2, the Company, within sixty (60) days thereafter, shall give written notice thereof to the
Holder at the address of such Holder as shown on the books of the Company, which notice shall state
the Exercise Price as adjusted and, if applicable, the increased or decreased number of Warrant
Shares subject to this Warrant, setting forth in reasonable detail the method of calculation of
each such adjustment.

3. TRANSFER OF WARRANT.

     (a) Requirements for Transfer. This Warrant and the rights represented hereby are not
transferable, except in accordance with the conditions set forth in this Section 3. In order to
effect any transfer of all or a portion of this Warrant or the Warrant Shares, the Holder hereof
shall deliver to the Company a completed and duly executed Notice of Transfer, in the form attached
as Exhibit “D” hereto.

     (b) Additional Conditions to Transfer of Warrant. Unless there is a registration
statement declared or ordered effective by the commission under the Securities Act which includes
this Warrant, the Warrant may not be transferred unless and until:

          (i) the Company shall have received an Investment Representation Statement, in the form
attached as Exhibit “E” hereto, certifying that, among other things, this Warrant is being acquired
for investment and not with a view to any sale or distribution thereof, and

          (ii) the Company shall have received a written notice from the Holder which describes the
manner and circumstances of the proposed transfer accompanied by a written opinion of Holder’s
legal counsel, in form and substance reasonably satisfactory to the Company, stating that such
transfer is exempt from the registration and prospectus delivery requirements of the Securities Act
and all applicable state securities laws.

     (c) Competitor of the Company. Notwithstanding Sections 3(a) and 3(b) above, this
Warrant is not transferable, whether by sale, pledge or other disposition, voluntarily or by
operation of law or otherwise, to any competitor of the Company (as determined in good faith by the
Board of Directors of the Company).

4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents and
warrants to the Holder as follows:

     (a) This Warrant has been duly authorized and validly executed and delivered by the Company
and constitutes a valid and legally binding obligation of the Company enforceable against the
Company in accordance with its terms.

     (b) The Warrant Shares have been duly and validly authorized and reserved for issuance by the
Company upon the exercise of the rights represented by this Warrant and, when issued upon the
exercise of such rights in accordance with the terms and conditions hereof, the Warrant Shares will
be (A) duly authorized and validly issued, fully paid and nonassessable shares of Series C
Preferred Stock, (B) free from all preemptive rights, rights of first refusal or first offer,
taxes, liens, charges or other encumbrances with respect to the issuance thereof by the Company,
and (C) free of any restrictions on the transfer thereof other than restrictions on transfer
provided for herein or under applicable federal and state securities laws. At all times during the
term hereof, the Company shall have authorized and reserved for issuance a sufficient number of
shares of Series C Preferred Stock to provide for the exercise of the rights represented by this
Warrant.

5

 

     (c) The due execution and delivery of this Warrant are not, and the issuance of the Warrant
Shares upon the exercise of the rights represented by this Warrant in accordance with the terms
hereof will not, conflict with the Certificate of Incorporation or Bylaws of the Company, each as
amended to the date of issuance hereof.

     (d) The Company acknowledges that this Warrant does not constitute security for the repayment
of any lease, loan or other indebtedness due from the Company to the Holder.

5. REPRESENTATIONS AND WARRANTIES OF THE HOLDER. The Holder hereby represents and warrants
to the Company as follows:

     (a) This Warrant is being acquired for such Holder’s own account, for investment and not with
a view to, or for resale in connection with, any distribution or public offering thereof within the
meaning of the Securities Act. Upon the exercise of the rights represented by this Warrant, the
Holder shall, if so requested by the Company, confirm in writing, in a form reasonably satisfactory
to the Company, that the Warrant Shares issuable upon the exercise of such rights are being
acquired for investment and not with a view toward distribution or resale thereof.

     (b) The Holder understands that the Warrant and the Warrant Shares have not been registered
under the Securities Act by reason of their issuance in a transaction exempt from the registration
and prospectus delivery requirements of the Securities Act pursuant to Section 4(2) thereof and
Regulation D thereunder, and that such Warrant and the Warrant Shares, as the case may be, must be
held by the Holder indefinitely, and therefore, that the Holder must bear the economic risk of such
investment, unless a subsequent disposition thereof is registered under the Securities Act or is
exempt from such registration requirements. The Holder further understands that the Warrant Shares
have not been qualified under the California Securities Law of 1968 (the “California Law”) by
reason of their issuance in a transaction exempt from the qualification requirements of the
California Law pursuant to Section 25102(f) thereof, which exemption depends upon, among other
things, the bona fide nature of such Holder’s investment intent expressed herein.

     (c) The Holder has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of the purchase of this Warrant and the Warrant Shares
and of protecting its interests in connection therewith.

     (d) The Holder is able to bear the economic risk of the purchase of the Warrant Shares
pursuant to the terms of this Warrant.

     (e) Holder is an “accredited investor” within the meaning of Rule 501 of Regulation D, as
presently in effect.

6. NO SHAREHOLDER RIGHTS. The Holder of this Warrant (and any transferee hereof) shall not
be entitled to vote on matters submitted for the approval or consent of the shareholders of the
Company or to receive dividends declared on or in respect of shares of Series C Preferred Stock, or
otherwise be deemed to be the holder of Series C Preferred Stock or any other capital stock or
other securities of the Company which may at any time be issuable upon the exercise of the rights
represented hereby for any purpose, nor shall anything contained herein be construed to confer upon
the Holder (or any transferee hereof) any of the rights of a shareholder of the Company or any
right to vote for the election of directors or upon any matter submitted for the approval or
consent of the shareholders, or to give or withhold consent to any corporate action (whether upon
any recapitalization, issuance of stock, reclassification of stock, merger or consolidation,
conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription
rights or otherwise until this Warrant shall have been exercised and the Warrant Shares issuable
upon the exercise of the rights represented hereby shall have become deliverable as provided
herein.

6

 

7. REGISTRATION RIGHTS. The Holder shall be entitled to participate in piggyback
registrations as set forth in Section 5.2 of that certain Amended and Restated Investor Rights
Agreement dated as of January 14, 2002, as amended, to the same extent as the holders of the
Company’s Registrable Securities, as defined therein.

8. EXPIRATION OF WARRANT. This Warrant shall expire, and the rights represented hereby may
no longer be exercised on the close of business on the tenth anniversary of the date of issuance
hereof.

9. LOCK-UP AGREEMENT. The Holder hereby agrees that, upon request of the Company or the
managing underwriter of a public offering of any securities of the Company, such Holder shall not
sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of
all or any portion of the Warrant Shares without the prior written consent of the Company or the
managing underwriter, as the case may be, for such period of time (not to exceed one hundred eighty
(180) days from the date upon which the registration statement relating to such public offering is
declared or ordered effective by the Securities and Exchange Commission) as may be requested by the
Company or the underwriters, as the case may be.

10. MISCELLANEOUS.

     (a) Governing Law. This Warrant is being delivered in the State of California, and
shall be construed and enforced in accordance with and governed by the laws of such State. The
parties expressly stipulate that any litigation under this Warrant shall be brought in the State
courts of the County of Santa Clara, California, or in the United States District Court for the
Northern District of California. The parties agree to submit to the jurisdiction and venue of such
courts.

     (b) Notice Procedures. Any written notice by the Company required hereunder shall be
made by hand delivery or first class mail, postage prepaid, address to the Holder at the address
set forth on the books of the Company.

     (c) Successors and Assigns. The terms of this Warrant shall be binding upon and shall
inure to the benefit of any successors or assigns of the Company and of the Holder or Holders of
this Warrant and the Warrant Shares issued or issuable upon the exercise of the rights represented
by this Warrant.

     (d) Entire Agreement. This Warrant constitutes the full and entire understanding and
agreement between the parties with respect to the subject matter hereof and supersedes in their
entirety any prior or contemporaneous agreements by and between the Company and the Holder with
respect to such matters.

     (e) Further Assurances: No Impairment. The Company shall not, by amendment of its
Articles of Incorporation or through any other means, directly or indirectly, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant and shall at all times in
good faith assist in the carrying out of all such terms and in the taking of all such action as may
be necessary or appropriate in order to protect the rights of the holder of this Warrant against
impairment. The Company shall at no time close its transfer books against the transfer of this
Warrant or of any Warrant Shares issued or issuable upon the exercise of the rights represented by
this Warrant in any manner, which interferes with a timely exercise of such rights.

     (f) Lost Warrant. Upon receipt of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft
or destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and amount
to the Company or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, the Company at the Holder’s expense shall execute and deliver to the Holder, in lieu
thereof, a new Warrant of like date and tenor.

7

 

     (g) Amendments. This Warrant and any provision hereof may be amended, waived or
terminated (either generally or in a particular instance, retroactively or prospectively and for a
specified period of time or indefinitely) only by a written instrument signed by the Company and
the Holder, or, in the event of any partial transfer of the rights represented by this Warrant, the
Holders of rights to purchase more than fifty percent (50%) of the Warrant Shares issuable upon
exercise of the rights represented by this Warrant, and with the same consent the Company may enter
into a supplementary agreement for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Warrant or the Warrants, as the case may be,
provided, however, that no such amendment, waiver, termination or supplemental agreement shall
reduce the aforesaid percentage which is required for consent to any amendment, waiver, termination
or supplemental agreement without the consent of all of the Holders of the rights represented by
this Warrant.

8

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized
officer.

Issued this 14th day of May, 2002.

	 	 	 	 	 	 	 
	 	 	Novasonics, Inc.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ S. Zafar Hamdini	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	S. Zafar Hamdini	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	 CEO/President	 	 

	 	 	 	 	 
	Acknowledged and Accepted:	 	 
	 
	 	 	 	 
	PENTECH FINANCIAL SERVICES, INC.

A California corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Norman H. Nelson
 

	 	 
	 
	 	 	 	 
	Name:

	 	Norman H. Nelson	 	 
	 
	 	 	 	 
	Title:

	 	President & COO	 	 

 

 

EXHIBIT A

NOTICE OF CASH EXERCISE

	 	 	 
	To:

	 	Novasonics, Inc.
	 

	 	1061 Terra Bella Avenue
	 

	 	Mountain View, CA 94043

     1. The
undersigned hereby elects to purchase _______ shares of Series C Preferred Stock of
Novasonics, Inc., a Delaware corporation (the “Company”), pursuant to the terms of Warrant No SCW
— 1, issued on May 14, 2002, to and in the name of Pentech Financial Services, Inc., a copy of
which is attached hereto (the ‘Warrant”), and tenders herewith full payment of the aggregate
Exercise Price for such shares in accordance with the terms of the Warrant.

     2. Please issue a certificate or certificates representing said shares of Series C Preferred
Stock in such name or names as specified below:

Pentech Financial Services, Inc.

a California corporation

310 West Hamilton Avenue, Suite 202

Campbell, CA 95008

     3. The undersigned hereby represents and warrants that the aforesaid shares of Series C
Preferred Stock are being acquired for the account of the undersigned for investment and not with a
view to, or for resale in connection with, the distribution thereof, and that the undersigned has
no present intention of distributing or reselling such shares and all representations and
warranties of the undersigned set forth in attached Warrant are true and correct as of the date
hereof. In support thereof, the undersigned has executed an Investment Representation Statement,
in the form attached as Exhibit C to the Warrant, concurrently herewith.

	 	 	 	 	 	 	 
	 	 	Pentech Financial Services, Inc.

a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT B

NOTICE OF NET-ISSUE EXERCISE

	 	 	 
	To:

	 	Novasonics, Inc.
	 

	 	1061 Terra Bella Avenue
	 

	 	Mountain View, CA 94043

     1. The
undersigned hereby elects to purchase _______ shares of Series C Preferred Stock of
Novasonics, Inc., a Delaware corporation (the “Company”), on a net-issue basis pursuant to the
terms of Warrant No. SCW—1, issued on May 14, 2002, to and in the name of Pentech Financial
Services, Inc., a copy of which is attached hereto (the ‘Warrant”).

     2. Net-Issue Information:

     (a) Number of Shares of Series C Preferred Stock to be Delivered:                     

     (b) Number of Shares of Series C Preferred Stock Surrendered:                     

     (c) Number of Shares Remaining Subject to Warrant:                                         

     3. Please issue a certificate or certificates representing said shares of Series C Preferred
Stock in such name or names as specified below:

Pentech Financial Services, Inc.

310 West Hamilton Avenue, Suite 202

Campbell, CA 95008

     4. The undersigned hereby represents and warrants that the aforesaid shares of Series C
Preferred Stock are being acquired for the account of the undersigned for investment and not with a
view to, or for resale in connection with, the distribution thereof, and that the undersigned has
no present intention of distributing or reselling such shares and all representations and
warranties of the undersigned set forth in attached Warrant are true and correct as of the date
hereof. In support thereof, the undersigned has executed an Investment Representation Statement,
in the form attached as Exhibit C to the Warrant, concurrently herewith.

	 	 	 	 	 	 	 
	 	 	Pentech Financial
Services, Inc,

a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT C

INVESTMENT REPRESENTATION STATEMENT

	 	 	 
	PURCHASER:

	 	Pentech Financial Services, Inc.
	 
	 	 
	SELLER: Novasonics, Inc.
	 
	 	 
	COMPANY: Novasonics, Inc.
	 
	 	 
	SECURITY: Series C Preferred Stock Issued Upon The Exercise Of Warrant No
                     Issued On                     , 2002.
	 
	 	 
	AMOUNT:                      SHARES
	 
	 	 
	DATE:                                         

     The undersigned hereby represent and warrants to Novasonics, Inc., a Delaware corporation (the
“Company”), as follows:

     1. The undersigned is aware of the business affairs, financial condition and results of
operations of the Company and has acquired sufficient information about the Company to reach an
informed and knowledgeable investment decision to acquire the Securities. The undersigned is
purchasing the Securities for its own account for investment purposes only and not with a view to,
or for the resale in connection with, any “distribution” thereof for purposes of the Securities Act
of 1933, as amended (the “Securities Act”).

     2. The undersigned understands that the Securities have not been registered under the
Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among
other things, the bona fide nature of its investment intent as expressed herein. The undersigned
understands that, in the view of the Securities and Exchange Commission (the “Commission”), the
statutory basis for such exemption may be unavailable if my representation was predicated solely
upon a present intention to hold the Securities for the minimum capital gains period specified
under tax statutes, for a deferred sale, for or until an increase or decrease in the market price
of the Securities, or for a period of one year or any other fixed period in the future.

     3. The undersigned further understands that the Securities must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from registration is
otherwise available. In addition, the undersigned understands that the certificate evidencing the
Securities will be imprinted with a legend, which prohibits the transfer of the Securities unless
they are registered or such registration is not required in the opinion of counsel for the Company.

     4. The undersigned is familiar with the provisions of Rule 144, promulgated under the
Securities Act, which, in substance, permits limited public resale of “restricted securities”
acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions.

     5. The undersigned further understands that in the event all of the applicable requirements of
Rule 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or
some other registration exemption will be required; and that, notwithstanding the fact that Rule
144 is not exclusive, the Staff of the Commission has expressed its opinion that persons proposing
to sell private placement securities other than in a registered offering and otherwise than
pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and their respective
brokers who participate in such transactions do so at their own risk.

 

 

     6. The undersigned is an “accredited investor” within the meaning of Rule 501 of Regulation D,
as presently in effect.

     7. The undersigned hereby agrees that, upon request of the Company or the managing underwriter
of a public offering of any securities of the Company, such undersigned shall not sell, make any
short sale of, loan, grant any option for the purchase of, or otherwise dispose of all or any
portion of the Securities without the prior written consent of the Company or the managing
underwriter, as the case may be, for such period of time (not to exceed one hundred eighty (180)
days from the date upon which the registration statement relating to such public offering is
declared or ordered effective by the Securities and Exchange Commission) as may be requested by the
Company or the underwriters, as the case may be.

	 	 	 	 	 	 	 
	 	 	Pentech Financial Services, Inc,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT D

NOTICE OF TRANSFER

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                     the right represented by Warrant No. SCW—1, issued on May 14, 2002, to and in
the name of Pentech Financial Services, Inc., to purchase
________  shares of Series C Preferred
Stock of Novasonics, Inc., a Delaware corporation (the “Company”), a copy of which is attached
hereto (the ‘Warrant”), and appoints                      as attorney-in-fact to transfer such
right on the books of the Company with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	Pentech Financial Services, Inc.,
	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	a California corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature must conform in all respects to name of
the Holder as set forth on the face of the Warrant)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	310 West Hamilton Avenue, Suite 202

Campbell, CA 95008	 	 

	 	 	 
	Signed in the presence of:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

 

 

EXHIBIT E

INVESTMENT REPRESENTATION STATEMENT

	 	 	 
	TRANSFEROR:

	 	Pentech Financial Services, Inc., a California corporation
	 
	 	 
	TRANSFEREE:

	 	                                        
	 
	 	 
	COMPANY:                                          
	 
	 	 
	COMPANY:  Novasonics, Inc.
	 
	 	 
	SECURITY:   WARRANT NO ___, ISSUED ON                     ,  2002
	 
	 	 
	AMOUNT:                       SHARES
	 
	 	 
	DATE:                      

     The undersigned hereby represents and warrants to Novasonics, Inc., a Delaware corporation
(the “Company”), as follows:

     1. The undersigned is aware of the business affairs, financial condition and results of
operations of the Company and has acquired sufficient information about the Company to reach an
informed and knowledgeable investment decision to acquire the Securities. The undersigned is
purchasing the Securities for its own account for investment purposes only and not with a view to,
or for the resale in connection with, any “distribution” thereof for purposes of the Securities Act
of 1933, as amended (the “Securities Act”).

     2. The undersigned understands that the Securities have not been registered under the
Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among
other things, the bona fide nature of my investment intent as expressed herein. The undersigned
understands that, in the view of the Securities and Exchange Commission (the “Commission”), the
statutory basis for such exemption may be unavailable if my representation was predicated solely
upon a present intention to hold the Securities for the minimum capital gains period specified
under tax statutes, for a deferred sale, for or until an increase or decrease in the market price
of the Securities, or for a period of one year or any other fixed period in the future.

     3. The undersigned further understands that the Securities must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from registration is
otherwise available. In addition, the undersigned understands that the certificate evidencing the
Securities will be imprinted with a legend, which prohibits the transfer of the Securities unless
they are registered or such registration is not required in the opinion of counsel for the Company.

     4. The undersigned is familiar with the provisions of Rule 144, promulgated under the
Securities Act, which, in substance, permits limited public resale of “restricted securities”
acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions.

     5. The undersigned further understands that in the event all of the applicable requirements of
Rule 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or
some other registration exemption will be required; and that, notwithstanding the fact that Rule
144 is not exclusive, the Staff of the Commission has expressed its opinion that persons proposing
to sell private placement securities other than in a registered offering and otherwise than
pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from
registration is available for such

 

 

offers or sales, and that such persons and their respective brokers who participate in such
transactions do so at their own risk.

     6. The undersigned is an “accredited investor” within the meaning of Rule 501 of Regulation D,
as presently in effect.

     7. The undersigned hereby agrees that, upon request of the Company or the managing underwriter
of a public offering of any securities of the Company, such undersigned shall not sell, make any
short sale of, loan, grant any option for the purchase of, or otherwise dispose of all or any
portion of the Securities without the prior written consent of the Company or the managing
underwriter, as the case may be, for such period of time (not to exceed one hundred eighty (180)
days from the date upon which the registration statement relating to such public offering is
declared or ordered effective by the Securities and Exchange Commission) as may be requested by the
Company or the underwriters, as the case may be.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	Transferee:	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:

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