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Exhibit 4.05    
    

 
 

INSIGNIA SOLUTIONS, PLC
  
    REGISTRATION RIGHTS AGREEMENT
  
    January 5, 2004    
    

 
 

INSIGNIA SOLUTIONS, PLC
  
    REGISTRATION RIGHTS AGREEMENT    
    

        This Registration Rights Agreement (the "Agreement") is made as of the 5th day of January, 2004, by and among
Insignia Solutions, PLC, a public limited company incorporated under the laws of England and Wales (registered number: 1961960), the individuals and entities listed on the signature pages hereto (each
an "Investor" and collectively the "Investors") and Nash Fitzwilliams Ltd. (the
"Placement Agent"). 

 
 

RECITALS    
    

        The Company and the Investors have entered into a American Depositary Shares Purchase Agreement (the "Purchase
Agreement") of even date herewith pursuant to which the Company has agreed to issue to the Investors and the Investors have agreed to purchase from the Company American
depositary shares ("ADSs"), each ADS representing one ordinary share, with a par value of 20 pence per share, of
the Company (the "Purchased Shares") and Closing Date Warrants and, pursuant to the Purchase Agreement if the Registration Statement is not declared
effective with the Securities and Exchange Commission before the Effectiveness Deadline, one or more Monthly Penalty Warrants (the Closing Date Warrants and the Monthly Penalty Warrants, if any, are
collectively the "Investor Warrants") to purchase the Company's ADSs. In addition, the Company and the Placement Agent have entered into an engagement
letter dated October 9, 2003 (the "Placement Agent Letter") pursuant to which the Company has agreed to issue to the Placement Agent a warrant exercisable for ADSs (the "Placement Agent
Warrant"). 

        A
condition to each Investor's obligations under the Purchase Agreement and the Placement Agent's obligations under the Placement Agent Letter is that the Company enter into this
Agreement in order to provide the Investor and the Placement Agent with certain rights to register the Shares (as defined below). The Company and the Investors each desire to induce the Investors to
purchase the Purchased Shares and the Investor Warrants pursuant to the Purchase Agreement by agreeing to the terms and conditions set forth herein. Likewise, the Company and the Placement Agent each
desire to induce the Placement Agent to perform its duties and exercise the Placement Agent Warrant by agreeing to the terms and conditions set forth herein. 

        All
capitalized terms not otherwise defined herein shall have the meanings ascribed in the Purchase Agreement. 

 
 

AGREEMENT    
    

        The parties hereby agree as follows: 

        1.    Registration Rights.    The Company and the Investors covenant and agree as follows: 

        1.1    Definitions.    For purposes of this Section 1 (terms defined in the singular
shall apply to the plural form and vice-versa): 

        (a)   The
terms "register," "registered," and
"registration" refer to a registration effected by preparing and filing a Registration Statement or similar document in compliance with the Securities
Act of 1933, as amended (the "Act"), or any similar successor federal statute and the rules and regulations thereunder in effect from time to time, and
the declaration or ordering of effectiveness of such Registration Statement or document by the SEC; 

        (b)   The
term "Registrable Securities" means (i) the ADSs issued under the Purchase Agreement and on exercise of the
Investor Warrants and the Placement Agent Warrant (such American depositary shares are collectively referred to hereinafter as the "Shares"), and
(ii) any other Ordinary Shares (including ADSs) of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or
other distribution with respect to, or in exchange for or in 

 

replacement
of, the Shares, provided, that the foregoing definition shall exclude in all cases any Registrable Securities sold by a person in a
transaction in which its rights under this Agreement are not assigned. Notwithstanding the foregoing, ADSs or other securities shall only be treated as Registrable Securities if and so long as they
have not (A) been sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction, or (B) been sold in a transaction exempt from the
registration and prospectus delivery requirements of the Act under Section 4(1) thereof so that all transfer restrictions, and restrictive legends with respect thereto, if any, are removed upon
the consummation of such sale or (C) with regard to any individual Holder, become eligible for sale without limitation as to volume in any three month period pursuant to Rule 144; 

        (c)   The
number of shares of "Registrable Securities then outstanding" shall be determined by the number of ADSs outstanding
which are, and the number of shares of ADSs issuable pursuant to then exercisable or convertible securities which are, Registrable Securities; 

        (d)   The
term "Holder" means any person owning or having the right to acquire Registrable Securities or any assignee thereof
in accordance with this Agreement; 

        (e)   The
term "Form S-3" means such form under the Act as in effect on the date hereof or any successor
form under the Act; and 

        (f)    The
term "SEC" means the Securities and Exchange Commission. 

        1.2    Form S-3 Registration.    

        (a)    Registration.    Subject to the terms and conditions of this Agreement, on or before the date that is thirty
(30) days after the Closing of the Purchase Agreement (the "Filing Deadline"), the Company will file with the SEC a Registration Statement on
Form S-3 (the "Registration Statement") in order to register the Shares for registration thereon, and will use its reasonable best
efforts to effect
the Registration Statement as soon as practicable, subject to the terms of this Agreement, and effect any related qualification or compliance with respect to all Registrable Securities owned by the
Holders as soon as practicable thereafter, subject to the Company's ability to defer filing the Registration Statement pursuant to subsection 1.2(b)(ii) below. 

        (b)    Mechanics.    Pursuant to its obligations under Section 1.2(a) above, the Company will: 

        (i)    promptly
give written notice of the registration, and any related qualification or compliance, to the Investors; 

        (ii)    use
its reasonable best efforts to effect such registration and all such qualifications and compliances as may be necessary and as would permit or facilitate the sale
and distribution of all of the Investors' Registrable Securities; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to
this Section 1.2 if the Company shall furnish to the Investors a certificate signed by the President of the Company stating that in the good faith reasonable judgment of the Board of Directors
of the Company (with the concurrence of the managing underwriter, if any), the filing of the Registration Statement would adversely affect, or require premature disclosure of, any filing, financing,
acquisition or reorganization involving the Company, in which event the Company shall have the right to defer the filing of the Registration Statement for a reasonable period of time, which shall not
exceed thirty (30) days after the Filing Deadline under this Section 1.2; and 

2

 

        (iii)    any
and all expenses incurred in connection with the Registration Statement filed pursuant to this Section 1.2 shall be borne by the Company, including all
registration, filing, qualification, printers' and accounting fees but excluding any underwriters' discounts or commissions or fees and disbursements for counsel to the Investors, provided however
that the Company shall reimburse the Holders for up to $10,000 in fees and disbursements for a single counsel for the Investors. 

        1.3    Obligations of the Company.    Whenever required under this Section 1 to effect
the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 

        (a)   Prepare
and file with the SEC the Registration Statement with respect to such Registrable Securities and use its reasonable best efforts to cause such registration
statement to become effective and to keep the Registration Statement effective until the earlier of: (i) two years after the Closing Date; (ii) the date when all of the Registrable
Securities covered by the Registration Statement are sold; or (iii) the date when Rule 144(k) is available with respect to all of the securities covered by such Registration Statement. 

        (b)   Prepare
and file with the SEC such amendments, including Registration Statements, and supplements to such Registration Statement and the prospectus used in connection
with such Registration Statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such Registration Statement. 

        (c)   Furnish
to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Act, and such other
documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them. 

        (d)   Use
its best efforts to register and qualify the securities covered by such Registration Statement under such other securities or blue sky laws of such jurisdictions as
shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions. 

        (e)   Notify
each Holder of Registrable Securities covered by such Registration Statement at any time when a prospectus relating thereto is required to be delivered under the
Act of the happening of any event as a result of which the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. In such circumstance, the Company will use
reasonable commercial efforts to promptly update such prospectus to correct such untrue statement or disclose the necessary material facts within the period of time the Company may delay sales under
Section 1.4(a)(iii) below. 

        (f)    Cause
all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then
listed. 

3

 

        1.4    Restrictions on and Procedure for Sales Pursuant to a Registration Statement.    

        (a)    Each
Holder agrees to the following: 

        (i)    Notice to Company.    If any Holder shall propose to sell any Shares, the Holder shall notify the Company of
its intent to do so on or before one (1) business day prior to the date of such sale (the "Notice of Sale"), and the provision of the Notice of
Sale to the Company shall conclusively be deemed to establish an agreement by such Holder to comply with the registration provisions herein described.
The Notice of Sale shall be deemed to constitute a representation that any information previously supplied by such Holder is accurate as of the date of such Notice of Sale. 

        (ii)    Notice of Sale.    The Notice of Sale in substantially the form attached as  Exhibit A shall be given in accordance with the provisions of
Section 3.5 hereof. However, the Holder may give the Notice of Sale orally
by telephoning the Chief Financial Officer at the Company at (510) 360-3786. An oral Notice of Sale shall be deemed to have been received only at such time as the selling Holder
speaks directly with the Chief Financial Officer. In addition, an oral Notice of Sale shall only be deemed effective if it is followed by a written Notice of Sale received by the Company by personal
delivery or facsimile within twenty-four (24) hours after giving the oral Notice of Sale. 

        (iii)    Delay of Sale.    The Company may refuse to permit the Holder to resell any Shares for a period of time not
to exceed 30 days; provided, however, that in order to exercise this right, the Company must deliver a certificate in writing to the Holder to the effect that the Registration Statement in its
then current form contains an untrue statement of material fact or omits to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they
were made, not misleading. During any suspension period as contemplated by this Section 1.4 (a)(iii), of which there shall be no more than two (2) in any twelve (12) month period,
the Company will not allow any of its officers or directors to buy or sell shares of the Company's securities. 

        (b)    Representations of Holders.    Each Holder hereby represents to and covenants with the Company that, during the
period in which any Registration Statement effected pursuant to Section 1.2 remains effective, such Holder will: 

        (i)    not
engage in any stabilization activity in connection with any of the Company's securities; 

        (ii)    cause
to be furnished to any purchaser of the Shares and to the broker-dealer, if any, through whom Shares may be offered, a copy of the Prospectus; and 

        (iii)    not
bid for or purchase any securities of the Company or any rights to acquire the Company's securities, or attempt to induce any person to purchase any of the
Company's securities or any rights to acquire the Company's securities, in each case, other than as permitted under the Exchange Act. 

        (c)    Information for Use in Registration Statement.    Each Holder covenants to the Company that such Holder will
complete the information requested by the Selling Holder's Questionnaire attached as Exhibit B hereto (the
"Questionnaire"), and further covenants to the Company that all information provided by such Holder in the Questionnaire will be true, accurate and
complete as of the date provided. Each Holder understands that the written information in the Questionnaire and all written 

4

 

representations
made in this Agreement are being provided to the Company specifically for use in, or in connection with, the Registration Statement and the Prospectus, and has executed this Agreement
with such knowledge. 

        1.5    Furnish Information.    It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding
itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder's Registrable Securities. 

        1.6    Delay of Registration.    No Holder shall have any right to obtain or seek an
injunction restraining or otherwise delaying any such registration as the result of any dispute that might arise with respect to the interpretation or implementation of this Section 1. 

        1.7    Indemnification.    In the event any Registrable Securities are included in a
Registration Statement under this Section 1: 

        (a)    To
the extent permitted by law, the Company will indemnify and hold harmless each Holder, each Holder's affiliates, and their respective officers, directors, employees,
representatives and agents, any underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Act or the Exchange Act,
against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Act, the Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a
"Violation"): (i) any untrue statement or alleged untrue statement of a material fact contained in such Registration Statement, including any
preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or (iii) any violation or alleged violation by the Company of
the Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Act, the Exchange Act or any state securities law; and the Company will, to the extent permitted by
law, pay to each such Holder, underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.7(a) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any
such case for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person. 

        (b)    To
the extent permitted by law, each selling Holder will severally indemnify and hold harmless the Company, each of its directors, each of its officers who has signed
the Registration Statement, each person, if any, who controls the Company within the meaning of the Act, any underwriter, any other Holder selling securities in such Registration Statement and any
controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the
Act, the Exchange Act or other 

5

 

federal
or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder
will pay, as incurred, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this subsection 1.7(b), in connection with investigating or defending any
such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.7(b) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, that, in no event shall any indemnity
under this subsection 1.7(b) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder. 

        (c)    Promptly
after receipt by an indemnified party under this Section 1.7 of notice of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.7, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by
the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in
such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action,
shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.7, but the omission so to deliver written notice to the indemnifying party will not relieve
it of any liability that it may have to any indemnified party otherwise than under this Section 1.7. 

        (d)    If
the indemnification provided for in this Section 1.7 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any
loss, liability, claim, damage, or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall, to the extent permitted by law, contribute
to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as
any other relevant equitable considerations; provided, that, in no event shall any contribution by a Holder under this Subsection 1.7(d) exceed the net proceeds from the offering received by such
Holder, except in the case of willful fraud by such Holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the
parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 

6

 

        (e)    The
obligations of the Company and Holders under this Section 1.7 shall survive the completion of any offering of Registrable Securities in a Registration
Statement under this Section 1. 

        1.8    Reports Under Securities Exchange Act of 1934.    With a view to making available to
the Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or
pursuant to a registration on Form S-3, the Company agrees, for so long as it remains subject to the periodic reporting requirements under Section 13 or 15(d) of the Exchange
Act, to: 

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

        (b)    file
with the SEC in a timely manner all reports and other documents required of the Company under the Act and the Exchange Act; and 

        (c)    furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company as to its compliance
with the reporting requirements of the Exchange Act and the rules and regulations promulgated thereunder, or that it qualifies as a registrant whose securities may be resold pursuant to
Form S-3, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form. 

        1.9    Assignment of Registration Rights.    The rights to cause the Company to register
Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of at least fifty percent (50%) of such
securities, provided that the Company is furnished with written notice of the name and address of such transferee or assignee and the securities with
respect to which such registration rights are being assigned; and provided, further, that such
assignment shall be effective only if the transferee agrees to be bound by this Agreement and such assignment shall be effective only if immediately following such transfer the further disposition of
such securities by the transferee or assignee is restricted under the Act. For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings
of transferees and assignees of a partnership who are partners or retired partners of such partnership (including spouses and ancestors, lineal descendants and siblings of such partners or spouses who
acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership; provided that all assignees and transferees who would not qualify
individually for assignment of registration rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under
Section 1. 

        1.10    Certain Limitations in Connection with Future Grants of Registration Rights.    From
and after the date of this Agreement until the Registration Statement is declared effective by the SEC, the Company shall not enter into any agreement with any holder or prospective holder of any
securities of the Company providing for the granting to such holder of registration rights unless such registration rights, if more favorable than those granted herein, are extended to the Holders or
their transferees permitted under paragraph 1.9. 

        2.    Miscellaneous.    

        2.1    Successors and Assigns.    Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective 

7

 

successors
and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any
rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

        2.2    Governing Law.    This Agreement and all acts and transactions pursuant hereto shall be
governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of laws. 

        2.3    Counterparts.    This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        2.4    Titles and Subtitles.    The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement. 

        2.5    Notices.    Unless otherwise provided herein, any notice required or permitted by this
Agreement shall be in writing and shall be deemed duly given upon delivery, when delivered personally or by overnight courier or confirmed facsimile and addressed to a Holder to be notified at such
party's address as set forth on the signature page hereto or to the Company at its address on its signature page hereto, or as subsequently modified by written notice. In the event that any date
provided for in this Agreement falls on a Saturday, Sunday or legal holiday, such date shall be deemed extended to the next business day. Notwithstanding the foregoing, any notice delivered pursuant
to Section 1.3(e) or Section 1.4 hereto must be made by personal delivery or confirmed facsimile transmission. 

        2.6    Expenses.    If any action at law or in equity is necessary to enforce or interpret the
terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

        2.7    Amendments and Waivers.    Any term of this Agreement may be amended and the observance
of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders of
80% of the Registrable Securities then outstanding, provided, however, that any amendment hereof that would materially adversely affect a Holder in a
manner different from the other Holders shall also require the consent of such adversely affected Holder. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each
holder of any Registrable Securities then outstanding, each future Holder of any such Registrable Securities, and the Company. 

        2.8    Severability.    If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated. 

        2.9    Entire Agreement.    This Agreement, the Warrants, and the Purchase Agreement all dated
as of the date hereof, and the other documents delivered pursuant hereto or contemplated hereby constitute the full and entire understanding and agreement between the parties with regard to the
subject matter hereof and thereof and supersede all prior agreements and understandings among the parties relating to the subject matter hereof. 

[Signature Pages Follow] 

8

        The
parties have executed this Registration Rights Agreement as of the date first written above. 

	 	 	COMPANY:

INSIGNIA SOLUTIONS, PLC
	

 	
 	

By:	
 	

/s/ Mark McMillan

	 	 	 	 	Name:	 	Mark McMillan

	 	 	 	 	Title:	 	Chief Executive Officer

	 	 	 	 	Address:	 	41300 Christy St.

	 	 	 	 	 	 	Fremont, CA 94538

        The
parties have executed this Registration Rights Agreement as of the date first written above. 

	 	 	Castle Creek Technology Partners, LLC
	

 	
 	

By:	
 	

/s/ Thomas A. Frei

	 	 	 	 	Name:	Thomas A. Frei

	 	 	 	 	Title:	Managing Director of the Investment Manager

	

 	
 	

Technology Investors 1 Limited Partnership
	

 	
 	

By:	
 	

/s/ Michael Iles

	 	 	 	 	Name:	Michael Iles

	 	 	 	 	Title:	President, Closeburn Management

	

 	
 	

Neil McLoughlin
	

 	
 	

By:	
 	

/s/ Neil McLoughlin

	 	 	 	 	Name:	Neil McLoughlin

	 	 	 	 	Title:	n/a

	

 	
 	

Intercontinental Services Ltd.
	

 	
 	

By:	
 	

/s/ Colin Vibert

	 	 	 	 	Name:	Colin Vibert

	 	 	 	 	Title:	Director

	

 	
 	

William Byrd
	

 	
 	

By:	
 	

/s/ William Byrd

	 	 	 	 	Name:	William Byrd

	 	 	 	 	Title:	n/a

	

 	
 	

Mark Lewis Glatman
	

 	
 	

By:	
 	

/s/ Mark Lewis Glatman

	 	 	 	 	Name:	Mark Lewis Glatman

	 	 	 	 	Title:	n/a

	

 	
 	

John Nigel Kirkland
	

 	
 	

By:	
 	

/s/ John Nigel Kirkland

	 	 	 	 	Name:	John Nigel Kirkland

	 	 	 	 	Title:	n/a

	

 	
 	

Hare & Co.
	

 	
 	

By:	
 	

/s/ Michael Bourne

	 	 	 	 	Name:	Michael Bourne

	 	 	 	 	Title:	Managing Director of Reabourne

	

 	
 	

Paul Ensor
	

 	
 	

By:	
 	

/s/ Paul Ensor

	 	 	 	 	Name:	Paul Ensor

	 	 	 	 	Title:	n/a

	

 	
 	

BNY GIL Client Account
	

 	
 	

By:	
 	

/s/ Brian O'Neill

	 	 	 	 	Name:	Brian O'Neill

	 	 	 	 	Title:	Investment Manager

 
 

EXHIBIT A
  
    INSIGNIA SOLUTIONS PLC
  
    NOTICE OF SALE    
    

        Pursuant to the Registration Rights Agreement dated as of January 5, 2004 by and between Insignia Solutions plc (the
"Company") and the undersigned and other entities, the undersigned hereby gives notice to the Company of the undersigned's intent to sell
[            ] shares of the Company's ADSs registered pursuant to the Registration Statement on (File No.            ).

	Dated:	 	, 200	 	 	By:	 	 
	 	
	 	
	 	 	 	
 (signature)
	

 	

 	

 	

 	
 	

Name:	
 	

 
	 	 	 	 	 	 	 	
 (print)
	

 	

 	

 	

 	
 	

Title:	
 	

 
	 	 	 	 	 	 	 	
 (if applicable)

[Note: This Notice of Sale must be completed and delivered (via personal delivery or facsimile) to the Chief Financial Officer of the Company on or before one
(1) business day before the date of sale of the shares of the Company's ADSs registered pursuant to the Registration Statement.]

 
 

EXHIBIT B
  
    INSIGNIA SOLUTIONS, PLC
  
    SELLING STOCKHOLDER'S QUESTIONNAIRE AND COVENANTS    
    

[omitted]

QuickLinks

Exhibit 4.05

INSIGNIA SOLUTIONS, PLC REGISTRATION RIGHTS AGREEMENT January 5, 2004

INSIGNIA SOLUTIONS, PLC REGISTRATION RIGHTS AGREEMENT

RECITALS

AGREEMENT

EXHIBIT A INSIGNIA SOLUTIONS PLC NOTICE OF SALE

EXHIBIT B INSIGNIA SOLUTIONS, PLC SELLING STOCKHOLDER'S QUESTIONNAIRE AND COVENANTSQuickLinks
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Exhibit 4.06    
    

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR RULE 701 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE
COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT. 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY AN AFFILIATE OF THE COMPANY. NO SALE OR DISPOSITION OF THESE SHARES MAY BE EFFECTED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION RELATED
THERETO OR IN COMPLIANCE WITH RULE 144 OR ITS SUCCESSOR OR PURSUANT TO AN OPINION OF COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

	Warrant No.	 	 	 	Number of Shares:	 	 
	 	 	
	 	 	 	
 (subject to adjustment)

Date
of Issuance: January 5, 2004 

 
 

INSIGNIA SOLUTIONS PLC
  
    Warrant to Purchase American Depositary Shares    
    

        Insignia Solutions, plc (the "Company"), for value received equal to $0.001 per share of Warrant Stock, hereby
certifies that                        or its registered assigns (the "Registered Holder"), is entitled, subject to the terms set forth below, to have issued to
it by the Company, at any time after the date hereof and on or before the Expiration Date (as defined in Section 6 below), up
to                        
(                        ) American depositary shares
("ADSs") (as adjusted from time to time pursuant to the provisions of this Warrant), with each ADS representing one ordinary share, 20 pence per share
nominal value of the Company, at a per share Exercise Price equal to $1.04, which is the average closing sale price of the ADSs over the five trading day period ending on the trading day prior to the
Closing Date, as reported on the Nasdaq Market, multiplied by 1.1, (subject to adjustment as hereinafter provided), provided however that the Exercise
Price shall be at least the U.S. Dollar equivalent of 20.5 pence per ADS calculated by reference to the average currency conversion rate quoted by the Bank of America in London as the price for Pounds
Sterling purchased with U.S. Dollars prevailing at the date the Warrant is exercised. Notwithstanding any provision hereof to the contrary (and in particular any provision relating to the adjustment
of the Exercise Price), the Company shall not be required or permitted to issue any ordinary shares under this Warrant (or have its transfer agent or Depositary issue any ADSs), if such issuance would
breach the Company's obligations under the United Kingdom Companies Act 1985. The shares to be issued upon exercise of this Warrant and the exercise price per share, as adjusted from time to time
pursuant to the provisions of this Warrant, are hereinafter referred to as the "Warrant Stock" and the "Exercise
Price," respectively. 

        This
Warrant is issued pursuant to that certain American Depositary Shares Purchase Agreement dated approximately concurrently herewith among the Company and certain individuals and
entities listed on Exhibit A thereof (the "Purchase Agreement"). Any capitalized terms used
herein, but not defined herein, shall carry those definitions ascribed to them in the Purchase Agreement. 

        1.    Fully Vested Shares.    The shares of Warrant Stock are fully vested and exercisable as
of the date of this Warrant. 

 

        2.    Exercise.    

        (a)    Method of Exercise.    This Warrant may be exercised by the Registered Holder, in whole
or in part, by surrendering this Warrant, with the exercise form appended hereto as Exhibit A duly executed by such Registered Holder or by such
Registered Holder's duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate in writing prior to the date of such exercise,
accompanied by payment in full of the Exercise Price payable in respect of the number of shares of Warrant Stock issued upon such exercise. The Exercise Price may be paid by cash, check, wire transfer
or by the surrender of promissory notes or other instruments representing indebtedness of the Company to the Registered Holder. 

        (b)    Effective Time of Exercise.    Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 2(a) above. At such time, the person
or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such exercise as provided in Section 2(c) below shall be deemed to have become the holder or holders
of record of the Warrant Stock represented by such certificates. 

        (c)    Delivery to Holder.    As soon as practicable after the exercise of this Warrant in
whole or in part, and in any event within 10 days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as such Registered
Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct: 

          (i)  an
American Depositary Receipt representing such number of shares of Warrant Stock to which such Registered Holder shall be entitled, and 

         (ii)  in
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the
number of shares of Warrant Stock equal (giving effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of such shares issued to the
Registered Holder upon such exercise as provided in Section 2(a) above. 

        3.    Adjustments.    The following provisions in relation to adjustments shall be subject to
the provisions in the opening clause of this Warrant relating to the minimum Exercise Price and to breaches of the United Kingdom Companies Act 1985: 

        (a)    Share subdivision and Dividends.    If the Company's outstanding shares shall be
subdivided into a greater number of shares or a dividend in ordinary shares shall be paid in respect of the ADSs, the Exercise Price in effect immediately prior to such subdivision or at the record
date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced, subject to the proviso that the
Exercise Price shall never be less than the US Dollar equivalent to 20.5 pence on the date of exercise. If outstanding shares shall be combined into a smaller number of shares, the Exercise Price in
effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately
increased. When any adjustment is required to be made in the Exercise Price, the number of shares of Warrant Stock to be issued upon the exercise of this Warrant shall be changed to the number
determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Exercise Price in effect
immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately after such adjustment. 

        (b)    Merger, Sale, Reclassification, Etc.    In case of any (i) sale or other
disposal of all or substantially all of the Company's assets or distribution of property to shareholders (other than distributions payable out of distributable profits available for that purpose),
(ii) reclassification, 

2

 

change
or conversion of the share capital of the Company or of any reorganization of the Company (or any other company the shares or securities of which are at the time receivable upon the exercise of
this Warrant) or (iii) any similar corporate reorganization on or after the date hereof, then and in each such case the holder of this Warrant, upon the exercise hereof at any time thereafter
shall be entitled to receive, in lieu of the shares or other securities and property receivable upon the exercise hereof prior to such sale or other disposal, reclassification, change, conversion or
reorganization, the shares or property to which such holder would have been entitled upon such consummation if such holder had exercised this Warrant immediately prior thereto, all subject to further
adjustment as provided in Section 3(a) or 3(b); and in each such case, the terms of this Section 3 shall be applicable to the shares or other securities properly receivable upon the
exercise of this Warrant after such sale or other disposal, reclassification, change, conversion or reorganization. 

        (c)    Adjustment Certificate.    When any adjustment is required to be made in the Warrant
Stock or the Exercise Price pursuant to this Section 3, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring
such adjustment, (ii) the Exercise Price after such adjustment and (iii) the kind and amount of shares or other securities or property into which this Warrant shall be exercisable after
such adjustment. 

        4.    Transfers.    

        (a)    Unregistered Security.    Each holder of this Warrant acknowledges that this Warrant
and the Warrant Stock have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and agrees not to sell, pledge,
distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise in the absence of (i) an effective registration statement under the
Securities Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal or state securities law then in effect
or (ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Stock issued
upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect. 

        (b)    Transferability.    Subject to the provisions of Section 4(a) hereof, this
Warrant and all rights hereunder are transferable, in whole or in part, to (i) any entity controlling, controlled by or under common
control of the Registered Holder that is not in the good faith determination of the Company's Board of Directors involved in a business that is competitive with the Company's business, or
(ii) to any other proposed transferee of at least fifty percent (50%) of the Warrant Shares by surrendering the Warrant with a properly executed assignment (in the form of  Exhibit B hereto) at
the principal office of the Company. 

        (c)    Warrant Register.    The Company will maintain a register containing the names and
addresses of the Registered Holders of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute
owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank,
the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary. Any Registered Holder may change such
Registered Holder's address as shown on the warrant register by written notice to the Company requesting such change. 

        5.    No Impairment.    The Company will not, by amendment of its memorandum and articles of
association or through reorganization, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will
(subject to Section 14 below) at all times in good faith assist in the carrying out of all such terms and in the taking 

3

 

of
all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment. 

        6.    Termination.    This Warrant (and the right to purchase securities upon exercise hereof)
shall terminate on the earlier of: (i) January 5, 2009 or (ii) the closing of any sale of all or substantially all of the assets of the Company, or any transaction or series of
related transactions in which the Company's shareholders (which shall include, for the avoidance of doubt, indirect shareholders who hold ADSs through the depositary) immediately prior thereto own
less than a majority of the voting shares of the Company (or its successor or parent) immediately thereafter (an "Acquisition") (the
"Expiration Date"). 

        7.    Notices of Certain Transactions.    In case: 

        (a)   the
Company shall take a record of the holders of its Ordinary Shares (including ADSs) (or other stock or securities at the time deliverable upon the exercise of this
Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of any class or any other
securities, or to receive any other right, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or 

        (b)   of
any capital reorganization of the Company, any reclassification of the share capital of the Company, or 

        (c)   of
the voluntary or involuntary dissolution, liquidation or winding-up of the Company, 

then,
and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to
be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such
reorganization, reclassification, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Ordinary
Shares (including ADSs) (or such other securities at the time deliverable upon such reorganization, reclassification, transfer, dissolution, liquidation or winding-up) are to be
determined. 

        8.    Reservation of Stock.    The Company shall ensure that it will have sufficient
authorized but unissued share capital out of which it can allot and issue such shares of Warrant Stock as may need to be issued to the Registered Holder upon the exercise of this Warrant. 

        9.    Exchange of Warrants.    Upon the surrender by the Registered Holder of any Warrant or
Warrants, properly endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 4 hereof, issue and deliver to or upon the order of
such Holder, at the Company's expense, a new Warrant or Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registereda Holder of any
applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of ADSs called for on the face or faces of the Warrant or Warrants so surrendered. 

        10.    Replacement of Warrants.    Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an
amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. 

        11.    Notices.    Any notice required or permitted by this Warrant shall be in writing and
shall be deemed duly given upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the regular mail as
certified or registered mail (airmail if sent internationally) with postage prepaid, addressed (a) if to the Registered Holder, to the 

4

 

address
of the Registered Holder most recently furnished in writing to the Company and (b) if to the Company, to the address set forth on the signature page of this Warrant or as subsequently
modified by written notice to the Registered Holder. 

        12.    No Rights as Stockholder.    Until the exercise of this Warrant, the Registered Holder
of this Warrant shall not have or exercise any rights by virtue hereof as a shareholder of the Company. 

        13.    No Fractional Shares.    No fractional shares of ADSs will be issued in connection with
any exercise hereunder. 

        14.    Amendment or Waiver.    Any term of this Warrant may be amended or waived upon written
consent of the Company and the registered holders of at least 80% of the ADSs issuable upon exercise of the outstanding warrants purchased pursuant to the Purchase Agreement. By acceptance hereof, the
Registered Holder acknowledges that in the event the required consent is obtained, any term of this Warrant may be amended or waived with or without the consent of the Registered Holder;  provided,
however, that any amendment hereof that would materially adversely affect the Registered
Holder in a manner different from the holders of the remaining warrants issued pursuant to the Purchase Agreement shall also require the consent of Registered Holder. 

        15.    Headings.    The headings in this Warrant are for purposes of reference only and shall
not limit or otherwise affect the meaning of any provision of this Warrant. 

        16.    Governing Law.    This Warrant and all acts and transactions pursuant hereto and the
rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of
law. 

        17.    Registration Rights.    The Warrant Shares are subject to the re-sale
registration rights described in the Registration Rights Agreement by and between the Company and the Registered Holder and dated concurrently herewith. 

        18.    Representations and Covenants of the Holder.    This Warrant has been entered into by
the Company in reliance upon the following representations and covenants of the Registered Holder: 

        (a)    Investment Purpose.    The Registered Holder is acquiring the Warrant and the ADSs
issuable upon exercise of the Warrant for its own account, not as a nominee or agent and with no present intention of selling or otherwise distributing any part thereof. 

        (b)    Private Issue.    The Registered Holder understands, except as provided in the
Registration Rights Agreement, (i) that neither the Warrant nor the ADSs issuable upon exercise of this Warrant is, nor will be, registered under the Securities Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will be exempt from the registration and qualifications requirements thereof pursuant to
Section 4(2) of the Securities Act and any applicable state securities laws, and (ii) that the Company's reliance on such exemption is predicated on the representations set forth in this
Section 18. 

        (c)    Disposition of Holder's Rights.    In no event will the Registered Holder make a
disposition of the Warrant or the ADSs issuable upon exercise of the Warrant in the absence of (i) an effective registration statement under the Securities Act as to this Warrant or such
Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel,
reasonably satisfactory to the Company, that such registration and qualification are not required. Notwithstanding the foregoing, the restrictions imposed upon the transferability of any of its rights
to acquire ADSs do not apply to transfers from the beneficial owner of any of the aforementioned securities to its nominee or from such nominee to its beneficial owner, and shall terminate as to any
particular ADS when (1) such security shall have been effectively registered under the Securities Act and sold by the holder thereof in accordance with such registration or (2) such
security shall have been 

5

 

sold
without registration in compliance with Rule 144 under the Securities Act, or (3) a letter shall have been issued to the Registered Holder at its request by the staff of the
Securities and Exchange Commission (the "SEC") or a ruling shall have been issued to the Registered Holder at its request by the SEC stating that no
action shall be recommended by such staff or taken by SEC, as the case may be, if such security is transferred without registration under the Securities Act in accordance with the conditions set forth
in such letter or ruling and such letter or ruling specifies that no subsequent restrictions on transfer are required. Whenever the restrictions imposed hereunder shall terminate, as hereinabove
provided, the Registered Holder or holder of an ADS then outstanding as to which such restrictions have terminated shall be entitled to receive from the Company, without expense to such holder, one or
more new certificates for the Warrant or for such ADSs not bearing any restrictive legend. 

        (d)    Financial Risk.    The Registered Holder has such business and financial experience as
is required to give it the capacity to protect its own interests in connection with its investment. 

        (e)    Accredited Investor.    The Registered Holder is an "accredited investor" as defined by
Rule 501 of Regulation D under the Securities Act, as presently in effect. 

        (f)    4.99% Maximum Share Holding.    Notwithstanding anything to the contrary contained
herein, the Holder shall not exercise this Warrant to the extent (but only to the extent) that such Holder would be the beneficial owner of more then 4.99% of the shares of the Company's common stock
outstanding thereafter. For purposes of this paragraph, beneficial ownership and all determinations and calculations shall be determined and calculated in accordance with Secion 13(d) of the
Securities Exchange Act of 1934, as amended, and all applicable rules and regulations thereunder. It is expressly a term of this Warrant that the limitations set forth herein shall apply to each
successive holder of any of this Warrant. The foregoing restriction may not be altered, amended, deleted or changed in any manner whatsoever unless the holders of a majority of the Company's
outstanding shares of common stock and the Holder (or any successive holder) approve such alteration, amendment, deletion or change. 

        (g)    Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (S12001/1335), as amended,
("FPO").    To the extent that the Purchaser is a resident of the United Kingdom or would otherwise be subject to the Financial Services and Markets Act 2000, the
Purchaser is either a person of a kind described in Article 19 (Investment Professionals), Article 49 (High Net Worth Companies, Unincorporated Association etc.) and/or Article 50
(Sophisticated Investors) of FPO, as presently in effect. 

        19.    Representations and Warranties of the Company.    This Warrant has been entered into by
the Registered Holder in reliance upon the following representations and covenants of the Company: 

        (a)    Authorization.    The Warrant has been duly executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of
debtors and rules of law governing specific performance, injunctive relief or other equitable remedies. 

        (b)    Valid Issuance.    The Warrant Stock is duly authorized and reserved for issuance, and
when issued, sold and delivered in accordance with the terms of this Warrant will be duly and validly issued and fully paid. 

        (c)    No Conflict.    The execution and delivery of this Warrant do not, and the consummation
of the transactions contemplated hereby will not, conflict with, or result in any violation of, breach or default (with or without notice or lapse of time, or both), or give rise to a right of
termination, cancellation or acceleration of any obligation or to a loss of a material benefit, under, any provision of the memorandum and articles of association of the Company or any material 

6

 

agreement
attached as an exhibit to the Company's SEC Documents (as defined in the Purchase Agreement), or any judgment, order, decree, statute, law, ordinance, rule, listing requirement or regulation
applicable to the Company, its properties or assets, which conflict, violation, default or right would have a material adverse effect on the business, properties, prospects, financial condition or
operations of the Company. 

        20.    Counterparts.    This Warrant may be executed in counterparts, and each such
counterpart shall be deemed an original for all purposes. 

[Signature Pages Follow] 

7

        IN
WITNESS WHEREOF, the parties have executed this Warrant to Purchase American Depositary Shares as of the date first above written. 

	 	 	 	 	INSIGNIA SOLUTIONS, PLC
	

 	
 	

 	
 	

By	
 	

 
	 	 	 	 	 	 	

	

 	
 	

 	
 	

Name:	
 	

 
	 	 	 	 	 	 	
 (print)
	

 	
 	

 	
 	

Title:	
 	

 
	 	 	 	 	 	 	

	

 	
 	

 	
 	

Address:	
 	

41300 Christy Street

Fremont, CA 94538-3115

Attention: Chief Financial Officer
	

 	
 	

 	
 	

Fax Number: (510) 360-3701
	
AGREED TO AND ACCEPTED BY:
	

	
 	

 	
 	

 
	

By	
 	

	
 	

 	
 	

 
	

Name:	
 	

 (print)	
 	

 	
 	

 
	

Title:	
 	

	
 	

 	
 	

 
	

Address:	
 	

 	
 	

 	
 	

 
	

Fax Number:

 
 

EXHIBIT A
  
    PURCHASE/EXERCISE FORM    
    

To:    Insignia
Solutions,
plc                                         
                 Dated:
 

        The
undersigned, pursuant to the provisions set forth in the attached Warrant No.            , hereby irrevocably elects to
purchase            American depositary shares covered
by such Warrant and herewith makes payment of
$                                         
 , representing the full purchase price for such shares at the price per share provided for in such Warrant. 

        The
undersigned acknowledges that it has reviewed the representations and warranties contained in Section 18 of the Warrant, including subsection (f) with regard to the
number of shares held by the undersigned, and by its signature below hereby makes such representations and warranties to the Company. The undersigned has delivered currently herewith a representation
letter, signed by the undersigned, stating the number of shares of the Company held by the undersigned immediately prior to the exercise of this Warrant and representing that the exercise of the
Warrant (or portion hereof) would not violate the provision of Section 18(f). Defined terms contained in such representations and warranties shall have the meanings assigned to them in the
Warrant. 

	 	 	Signature:	 	 
	 	 	 	 	

	

 	
 	

Name (print):	
 	

 
	 	 	 	 	

	

 	
 	

Title (if applic.):	
 	

 
	 	 	 	 	

	

 	
 	

Company (if applic.):	
 	

 
	 	 	 	 	

 
 

EXHIBIT B
  
    ASSIGNMENT FORM    
    

        FOR VALUE RECEIVED,                        hereby sells, assigns
and transfers all of the rights of the undersigned under the attached Warrant with respect to the number
of American depositary shares covered thereby set forth below, unto: 

	Name of Assignee
	 	Address/Fax Number
	 	No. of Shares

	

    	
 	

 	
 	

 
	

 	
 	

 	
 	

 

	Dated:	 	 	 	Signature:	 	 
	 	 	
	 	 	 	

	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

Witness:	
 	

 
	 	 	 	 	 	 	

QuickLinks

Exhibit 4.06

INSIGNIA SOLUTIONS PLC Warrant to Purchase American Depositary Shares

EXHIBIT A PURCHASE/EXERCISE FORM

EXHIBIT B ASSIGNMENT FORM

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