Document:

ex4_9.htm

Exhibit 4.9

 

XOMA Corporation

 

and

 

_____________, As Warrant Agent

 

Debt Securities

 

Warrant Agreement

 

Dated As Of __________

  

  

  

XOMA CORPORATION

 

DEBT SECURITIES WARRANT AGREEMENT

 

This Debt Securities Warrant Agreement (this “Agreement”), dated as of [●], between XOMA Corporation, a Delaware corporation (the “Company”) and [●], a [corporation] [national banking association] organized and existing under the laws of [●] and having a corporate trust office in [●], as warrant agent (the “Warrant Agent”).

 

Whereas, the Company has entered into an indenture dated as of [●] (the “Indenture”), with [●], as trustee (such trustee, and any successors to such trustee, herein called the “Trustee”), providing for the issuance from time to time of its debt securities, to be issued in one or more series as provided in the Indenture (the “Debt Securities”);

 

Whereas, the Company proposes to sell [If Warrants are sold with other securities — title of such other securities being offered] (the “Other Securities”) with] warrant certificates evidencing one or more warrants (the “Warrants” or, individually, a “Warrant”) representing the right to purchase [title of Debt Securities purchasable through exercise of Warrants] (the “Warrant Debt Securities”), such warrant certificates and other warrant certificates issued pursuant to this Agreement being herein called the “Warrant Certificates”; and

 

Whereas, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, registration, transfer, exchange, exercise and replacement of the Warrant Certificates, and in this Agreement wishes to set forth, among other things, the form and provisions of the Warrant Certificates and the terms and conditions on which they may be issued, registered, transferred, exchanged, exercised and replaced.

 

Now Therefore, in consideration of the premises and of the mutual agreements herein contained, the parties hereto agree as follows:

 

ARTICLE 1

 

ISSUANCE OF WARRANTS AND EXECUTION AND

DELIVERY OF WARRANT CERTIFICATES

 

1.1           Issuance Of Warrants.  [If Warrants alone — Upon issuance, each Warrant Certificate shall evidence one or more Warrants.] [If Other Securities and Warrants — Warrant Certificates will be issued in connection with the issuance of the Other Securities but shall be separately transferable and each Warrant Certificate shall evidence one or more Warrants.] Each Warrant evidenced thereby shall represent the right, subject to the provisions contained herein and therein, to purchase one Warrant Debt Security. [If Other Securities and Warrants — Warrant Certificates will be issued with the Other Securities and each Warrant Certificate will evidence [●] Warrants for each [$[●] principal amount] [[●] shares] of Other Securities issued.]

 

1.2           Execution And Delivery Of Warrant Certificates. Each Warrant Certificate, whenever issued, shall be in registered form substantially in the form set forth in Exhibit A hereto, shall be dated the date of its countersignature by the Warrant Agent and may have such letters, numbers, or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the officers of the Company executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which the Warrants may be listed, or to conform to usage. The Warrant Certificates shall be signed on behalf of the Company by any of its present or future chief executive officers, presidents, senior vice presidents, vice presidents, chief financial officers, chief legal officers, treasurers, assistant treasurers, controllers, assistant controllers, secretaries or assistant secretaries under its corporate seal reproduced thereon. Such signatures may be manual or facsimile signatures of such authorized officers and may be imprinted or otherwise reproduced on the Warrant Certificates. The seal of the Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant Certificates.

  

1.

  

 

No Warrant Certificate shall be valid for any purpose, and no Warrant evidenced thereby shall be exercisable, until such Warrant Certificate has been countersigned by the manual signature of the Warrant Agent. Such signature by the Warrant Agent upon any Warrant Certificate executed by the Company shall be conclusive evidence that the Warrant Certificate so countersigned has been duly issued hereunder.

 

In case any officer of the Company who shall have signed any of the Warrant Certificates either manually or by facsimile signature shall cease to be such officer before the Warrant Certificates so signed shall have been countersigned and delivered by the Warrant Agent, such Warrant Certificates may be countersigned and delivered notwithstanding that the person who signed such Warrant Certificates ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Warrant Certificate, shall be the proper officers of the Company, although at the date of the execution of this Agreement any such person was not such officer.

 

The term “holder” or “holder of a Warrant Certificate” as used herein shall mean any person in whose name at the time any Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent for that purpose.

 

1.3           Issuance Of Warrant Certificates. Warrant Certificates evidencing the right to purchase Warrant Debt Securities may be executed by the Company and delivered to the Warrant Agent upon the execution of this Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon receipt of Warrant Certificates duly executed on behalf of the Company, countersign such Warrant Certificates and shall deliver such Warrant Certificates to or upon the order of the Company.

 

ARTICLE 2

 

WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS

 

2.1           Warrant Price.  During the period specified in Section 2.2, each Warrant shall, subject to the terms of this Warrant Agreement and the applicable Warrant Certificate, entitle the holder thereof, to purchase the principal amount of Warrant Debt Securities specified in the applicable Warrant Certificate at an exercise price of [●]% of the principal amount thereof [plus accrued amortization, if any, of the original issue discount of the Warrant Debt Securities] [plus accrued interest, if any, from the most recent date from which interest shall have been paid on the Warrant Debt Securities or, if no interest shall have been paid on the Warrant Debt Securities, from the date of their initial issuance.] [The original issue discount ($[●] for each $1,000 principal amount of Warrant Debt Securities) will be amortized at a [●]% annual rate, computed on a[n] [semi-] annual basis [using a 360-day year consisting of twelve 30-day months].] Such purchase price for the Warrant Debt Securities is referred to in this Agreement as the “Warrant Price.”

  

2.

  

 

2.2           Duration Of Warrants.  Each Warrant may be exercised in whole or in part at any time, as specified herein, on or after [the date thereof] [●] and at or before [●] p.m., [City] time, on [●] or such later date as the Company may designate by notice to the Warrant Agent and the holders of Warrant Certificates mailed to their addresses as set forth in the record books of the Warrant Agent (the “Expiration Date”). Each Warrant not exercised at or before [●] p.m., [City] time, on the Expiration Date shall become void, and all rights of the holder of the Warrant Certificate evidencing such Warrant under this Agreement shall cease.

 

	
  

	
2.3

	
Exercise Of Warrants.

 

(a)           During the period specified in Section 2.2, the Warrants may be exercised to purchase a whole number of Warrant Debt Securities in registered form by providing certain information as set forth on the reverse side of the Warrant Certificate and by paying in full, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds] the Warrant Price for each Warrant Debt Security with respect to which a Warrant is being exercised to the Warrant Agent at its corporate trust office, provided that such exercise is subject to receipt within five business days of such payment by the Warrant Agent of the Warrant Certificate with the form of election to purchase Warrant Debt Securities set forth on the reverse side of the Warrant Certificate properly completed and duly executed. The date on which payment in full of the Warrant Price is received by the Warrant Agent shall, subject to receipt of the Warrant Certificate as aforesaid, be deemed to be the date on which the Warrant is exercised; provided, however, that if, at the date of receipt of such Warrant Certificates and payment in full of the Warrant Price, the transfer books for the Warrant Debt Securities purchasable upon the exercise of such Warrants shall be closed, no such receipt of such Warrant Certificates and no such payment of such Warrant Price shall be effective to constitute the person so designated to be named as the holder of record of such Warrant Debt Securities on such date, but shall be effective to constitute such person as the holder of record of such Warrant Debt Securities for all purposes at the opening of business on the next succeeding day on which the transfer books for the Warrant Debt Securities purchasable upon the exercise of such Warrants shall be opened, and the certificates for the Warrant Debt Securities in respect of which such Warrants are then exercised shall be issuable as of the date on such next succeeding day on which the transfer books shall next be opened, and until such date the Company shall be under no duty to deliver any certificate for such Warrant Debt Securities. The Warrant Agent shall deposit all funds received by it in payment of the Warrant Price in an account of the Company maintained with it and shall advise the Company by telephone at the end of each day on which a payment for the exercise of Warrants is received of the amount so deposited to its account. The Warrant Agent shall promptly confirm such telephone advice to the Company in writing.

 

(b)           The Warrant Agent shall, from time to time, as promptly as practicable, advise the Company of (i) the number of Warrant Debt Securities with respect to which Warrants were exercised, (ii) the instructions of each holder of the Warrant Certificates evidencing such Warrants with respect to delivery of the Warrant Debt Securities to which such holder is entitled upon such exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any, of the Warrants for the remaining Warrant Debt Securities after such exercise, and (iv) such other information as the Company or the Trustee shall reasonably require.

  

3.

  

 

(c)           As soon as practicable after the exercise of any Warrant, the Company shall issue, pursuant to the Indenture, in authorized denominations, to or upon the order of the holder of the Warrant Certificate evidencing such Warrant, the Warrant Debt Securities to which such holder is entitled, in fully registered form, registered in such name or names as may be directed by such holder. If fewer than all of the Warrants evidenced by such Warrant Certificate are exercised, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, a new Warrant Certificate evidencing Warrants for the number of Warrant Debt Securities remaining unexercised.

 

(d)           The Company shall not be required to pay any stamp or other tax or other governmental charge required to be paid in connection with any transfer involved in the issue of the Warrant Debt Securities, and in the event that any such transfer is involved, the Company shall not be required to issue or deliver any Warrant Debt Securities until such tax or other charge shall have been paid or it has been established to the Company’s satisfaction that no such tax or other charge is due.

 

(e)           Prior to the issuance of any Warrants there shall have been reserved, and the Company shall at all times through the Expiration Date keep reserved, out of its authorized but unissued Warrant Debt Securities, a number of shares sufficient to provide for the exercise of the Warrants.

 

ARTICLE 3

 

OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF

WARRANT CERTIFICATES

 

3.1           No Rights As Holders of Warrant Debt Securities Conferred By Warrants or Warrant Certificates.  No Warrant Certificate or Warrant evidenced thereby shall entitle the holder thereof to any of the rights of a holder of Warrant Debt Securities, including, without limitation, the right to receive the payment of principal of (or premium, if any) or interest, if any, on the Warrant Debt Securities or to enforce any of the covenants in the Indenture.

 

3.2           Lost, Stolen, Mutilated Or Destroyed Warrant Certificates.  Upon receipt by the Warrant Agent of evidence reasonably satisfactory to it and the Company of the ownership of and the loss, theft, destruction or mutilation of any Warrant Certificate and/or indemnity reasonably satisfactory to the Warrant Agent and the Company and, in the case of mutilation, upon surrender of the mutilated Warrant Certificate to the Warrant Agent for cancellation, then, in the absence of notice to the Company or the Warrant Agent that such Warrant Certificate has been acquired by a bona fide purchaser, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, in exchange for or in lieu of the lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant Certificate of the same tenor and evidencing Warrants for a like principal amount of Warrant Debt Securities. Upon the issuance of any new Warrant Certificate under this Section 3.2, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Warrant Agent) in connection therewith. Every substitute Warrant Certificate executed and delivered pursuant to this Section 3.2 in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an additional contractual obligation of the Company, whether or not the lost, stolen or destroyed Warrant Certificate shall be at any time enforceable by anyone, and shall be entitled to the benefits of this Agreement equally and proportionately with any and all other Warrant Certificates duly executed and delivered hereunder. The provisions of this Section 3.2 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement of mutilated, lost, stolen or destroyed Warrant Certificates.

  

4.

  

 

3.3           Holder Of Warrant Certificate May Enforce Rights.  Notwithstanding any of the provisions of this Agreement, any holder of a Warrant Certificate, without the consent of the Warrant Agent, the Trustee, the holder of any Warrant Debt Securities or the holder of any other Warrant Certificate, may, in such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company suitable to enforce, or otherwise in respect of, such holder’s right to exercise the Warrants evidenced by such holder’s Warrant Certificate in the manner provided in such holder’s Warrant Certificates and in this Agreement.

 

3.4           Merger, Sale, Conveyance or Lease.  In case of (a) any share exchange, merger or similar transaction of the Company with or into another person or entity (other than a share exchange, merger or similar transaction in which the Company is the acquiring or surviving corporation) or (b) the sale, exchange, lease, transfer or other disposition of all or substantially all of the properties and assets of the Company as an entirety (in any such case, a “Reorganization Event”), then, as a condition of such Reorganization Event, lawful provisions shall be made, and duly executed documents evidencing the same from the Company’s successor shall be delivered to the holders of the Warrants, so that such successor shall succeed to and be substituted for the Company, and assume all the Company’s obligations under, this Agreement and the Warrants. The Company shall thereupon be relieved of any further obligation hereunder or under the Warrants, and the Company as the predecessor corporation may thereupon or at any time thereafter be dissolved, wound up or liquidated. Such successor or assuming entity thereupon may cause to be signed, and may issue either in its own name or in the name of the Company, any or all of the Warrants issuable hereunder which heretofore shall not have been signed by the Company, and may execute and deliver securities in its own name, in fulfillment of its obligations to deliver Warrant Debt Securities upon exercise of the Warrants. All the Warrants so issued shall in all respects have the same legal rank and benefit under this Agreement as the Warrants theretofore or thereafter issued in accordance with the terms of this Agreement as though all of such Warrants had been issued at the date of the execution hereof. In any case of any such Reorganization Event, such changes in phraseology and form (but not in substance) may be made in the Warrants thereafter to be issued as may be appropriate. The Warrant Agent may receive a written opinion of legal counsel as conclusive evidence that any such Reorganization Event complies with the provisions of this Section 3.4.

 

3.5           Notice to Warrantholders.  In case the Company shall (a) effect any Reorganization Event or (b) make any distribution on or in respect of the [title of Warrant Debt Securities] in connection with the dissolution, liquidation or winding up of the Company, then the Company shall mail to each holder of Warrants at such holder’s address as it shall appear on the books of the Warrant Agent, at least ten days prior to the applicable date hereinafter specified, a notice stating the date on which such Reorganization Event, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of [title of Warrant Debt Securities] of record shall be entitled to exchange their shares of [title of Warrant Debt Securities] for securities or other property deliverable upon such Reorganization Event, dissolution, liquidation or winding up. No failure to mail such notice nor any defect therein or in the mailing thereof shall affect any such transaction.

  

5.

  

ARTICLE 4

 

EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES

 

4.1           Exchange And Transfer Of Warrant Certificates. Upon surrender at the corporate trust office of the Warrant Agent, Warrant Certificates evidencing Warrants may be exchanged for Warrant Certificates in other denominations evidencing such Warrants or the transfer thereof may be registered in whole or in part; provided that such other Warrant Certificates evidence Warrants for the same aggregate principal amount of Warrant Debt Securities as the Warrant Certificates so surrendered. The Warrant Agent shall keep, at its corporate trust office, books in which, subject to such reasonable regulations as it may prescribe, it shall register Warrant Certificates and exchanges and transfers of outstanding Warrant Certificates, upon surrender of the Warrant Certificates to the Warrant Agent at its corporate trust office for exchange or registration of transfer, properly endorsed or accompanied by appropriate instruments of registration of transfer and written instructions for transfer, all in form satisfactory to the Company and the Warrant Agent. No service charge shall be made for any exchange or registration of transfer of Warrant Certificates, but the Company may require payment of a sum sufficient to cover any stamp or other tax or other governmental charge that may be imposed in connection with any such exchange or registration of transfer. Whenever any Warrant Certificates are so surrendered for exchange or registration of transfer, an authorized officer of the Warrant Agent shall manually countersign and deliver to the person or persons entitled thereto a Warrant Certificate or Warrant Certificates duly authorized and executed by the Company, as so requested. The Warrant Agent shall not be required to effect any exchange or registration of transfer which will result in the issuance of a Warrant Certificate evidencing a Warrant for a fraction of a Warrant Debt Security or a number of Warrants for a whole number of Warrant Debt Securities and a fraction of a Warrant Debt Security. All Warrant Certificates issued upon any exchange or registration of transfer of Warrant Certificates shall be the valid obligations of the Company, evidencing the same obligations and entitled to the same benefits under this Agreement as the Warrant Certificate surrendered for such exchange or registration of transfer.

 

4.2           Treatment Of Holders Of Warrant Certificates. The Company, the Warrant Agent and all other persons may treat the registered holder of a Warrant Certificate as the absolute owner thereof for any purpose and as the person entitled to exercise the rights represented by the Warrants evidenced thereby, any notice to the contrary notwithstanding.

 

4.3           Cancellation Of Warrant Certificates.  Any Warrant Certificate surrendered for exchange, registration of transfer or exercise of the Warrants evidenced thereby shall, if surrendered to the Company, be delivered to the Warrant Agent and all Warrant Certificates surrendered or so delivered to the Warrant Agent shall be promptly canceled by the Warrant Agent and shall not be reissued and, except as expressly permitted by this Agreement, no Warrant Certificate shall be issued hereunder in exchange therefor or in lieu thereof. The Warrant Agent shall deliver to the Company from time to time or otherwise dispose of canceled Warrant Certificates in a manner satisfactory to the Company.

 

ARTICLE 5

 

CONCERNING THE WARRANT AGENT

 

5.1           Warrant Agent.  The Company hereby appoints [●] as Warrant Agent of the Company in respect of the Warrants and the Warrant Certificates upon the terms and subject to the conditions herein set forth, and [●] hereby accepts such appointment. The Warrant Agent shall have the powers and authority granted to and conferred upon it in the Warrant Certificates and hereby and such further powers and authority to act on behalf of the Company as the Company may hereafter grant to or confer upon it. All of the terms and provisions with respect to such powers and authority contained in the Warrant Certificates are subject to and governed by the terms and provisions hereof.

 

5.2           Conditions Of Warrant Agent’s Obligations.  The Warrant Agent accepts its obligations herein set forth upon the terms and conditions hereof, including the following to all of which the Company agrees and to all of which the rights hereunder of the holders from time to time of the Warrant Certificates shall be subject:

  

6.

  

 

(a)           Compensation And Indemnification.  The Company agrees promptly to pay the Warrant Agent the compensation to be agreed upon with the Company for all services rendered by the Warrant Agent and to reimburse the Warrant Agent for reasonable out-of-pocket expenses (including reasonable counsel fees) incurred without negligence, bad faith or willful misconduct by the Warrant Agent in connection with the services rendered hereunder by the Warrant Agent. The Company also agrees to indemnify the Warrant Agent for, and to hold it harmless against, any loss, liability or expense incurred without negligence, bad faith or willful misconduct on the part of the Warrant Agent, arising out of or in connection with its acting as Warrant Agent hereunder, including the reasonable costs and expenses of defending against any claim of such liability.

 

(b)           Agent For The Company.  In acting under this Warrant Agreement and in connection with the Warrant Certificates, the Warrant Agent is acting solely as agent of the Company and does not assume any obligations or relationship of agency or trust for or with any of the holders of Warrant Certificates or beneficial owners of Warrants.

 

(c)           Counsel.  The Warrant Agent may consult with counsel satisfactory to it, which may include counsel for the Company, and the written advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice of such counsel.

 

(d)           Documents.  The Warrant Agent shall be protected and shall incur no liability for or in respect of any action taken or omitted by it in reliance upon any Warrant Certificate, notice, direction, consent, certificate, affidavit, statement or other paper or document reasonably believed by it to be genuine and to have been presented or signed by the proper parties.

 

(e)           Certain Transactions.  The Warrant Agent, and its officers, directors and employees, may become the owner of, or acquire any interest in, Warrants, with the same rights that it or they would have if it were not the Warrant Agent hereunder, and, to the extent permitted by applicable law, it or they may engage or be interested in any financial or other transaction with the Company and may act on, or as depositary, trustee or agent for, any committee or body of holders of Warrant Debt Securities or other obligations of the Company as freely as if it were not the Warrant Agent hereunder. Nothing in this Warrant Agreement shall be deemed to prevent the Warrant Agent from acting as Trustee under the Indenture.

 

(f)           No Liability For Interest.  Unless otherwise agreed with the Company, the Warrant Agent shall have no liability for interest on any monies at any time received by it pursuant to any of the provisions of this Agreement or of the Warrant Certificates.

 

(g)           No Liability For Invalidity.  The Warrant Agent shall have no liability with respect to any invalidity of this Agreement or any of the Warrant Certificates (except as to the Warrant Agent’s countersignature thereon).

 

(h)           No Responsibility For Representations.  The Warrant Agent shall not be responsible for any of the recitals or representations herein or in the Warrant Certificates (except as to the Warrant Agent’s countersignature thereon), all of which are made solely by the Company.

 

(i)           No Implied Obligations.  The Warrant Agent shall be obligated to perform only such duties as are herein and in the Warrant Certificates specifically set forth and no implied duties or obligations shall be read into this Agreement or the Warrant Certificates against the Warrant Agent. The Warrant Agent shall not be under any obligation to take any action hereunder which may tend to involve it in any expense or liability, the payment of which within a reasonable time is not, in its reasonable opinion, assured to it. The Warrant Agent shall not be accountable or under any duty or responsibility for the use by the Company of any of the Warrant Certificates authenticated by the Warrant Agent and delivered by it to the Company pursuant to this Agreement or for the application by the Company of the proceeds of the Warrant Certificates. The Warrant Agent shall have no duty or responsibility in case of any default by the Company in the performance of its covenants or agreements contained herein or in the Warrant Certificates or in the case of the receipt of any written demand from a holder of a Warrant Certificate with respect to such default, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or, except as provided in Section 6.2 hereof, to make any demand upon the Company.

  

7.

  

 

5.3           Resignation, Removal And Appointment Of Successors.

 

(a)           The Company agrees, for the benefit of the holders from time to time of the Warrant Certificates, that there shall at all times be a Warrant Agent hereunder until all the Warrants have been exercised or are no longer exercisable.

 

(b)           The Warrant Agent may at any time resign as agent by giving written notice to the Company of such intention on its part, specifying the date on which its desired resignation shall become effective; provided that such date shall not be less than three months after the date on which such notice is given unless the Company otherwise agrees. The Warrant Agent hereunder may be removed at any time by the filing with it of an instrument in writing signed by or on behalf of the Company and specifying such removal and the intended date when it shall become effective. Such resignation or removal shall take effect upon the appointment by the Company, as hereinafter provided, of a successor Warrant Agent (which shall be a bank or trust company authorized under the laws of the jurisdiction of its organization to exercise corporate trust powers) and the acceptance of such appointment by such successor Warrant Agent. The obligation of the Company under Section 5.2(a) shall continue to the extent set forth therein notwithstanding the resignation or removal of the Warrant Agent.

 

(c)           In case at any time the Warrant Agent shall resign, or shall be removed, or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or shall commence a voluntary case under the Federal bankruptcy laws, as now or hereafter constituted, or under any other applicable Federal or state bankruptcy, insolvency or similar law or shall consent to the appointment of or taking possession by a receiver, custodian, liquidator, assignee, trustee, sequestrator (or other similar official) of the Warrant Agent or its property or affairs, or shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall take corporate action in furtherance of any such action, or a decree or order for relief by a court having jurisdiction in the premises shall have been entered in respect of the Warrant Agent in an involuntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or state bankruptcy, insolvency or similar law, or a decree or order by a court having jurisdiction in the premises shall have been entered for the appointment of a receiver, custodian, liquidator, assignee, trustee, sequestrator (or similar official) of the Warrant Agent or of its property or affairs, or any public officer shall take charge or control of the Warrant Agent or of its property or affairs for the purpose of rehabilitation, conservation, winding up or liquidation, a successor Warrant Agent, qualified as aforesaid, shall be appointed by the Company by an instrument in writing, filed with the successor Warrant Agent. Upon the appointment as aforesaid of a successor Warrant Agent and acceptance by the successor Warrant Agent of such appointment, the Warrant Agent shall cease to be Warrant Agent hereunder.

  

8.

  

 

(d)           Any successor Warrant Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the Company an instrument accepting such appointment hereunder, and thereupon such successor Warrant Agent, without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such predecessor with like effect as if originally named as Warrant Agent hereunder, and such predecessor, upon payment of its charges and disbursements then unpaid, shall thereupon become obligated to transfer, deliver and pay over, and such successor Warrant Agent shall be entitled to receive, all monies, securities and other property on deposit with or held by such predecessor, as Warrant Agent hereunder.

 

(e)           Any corporation into which the Warrant Agent hereunder may be merged or converted or any corporation with which the Warrant Agent may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party, or any corporation to which the Warrant Agent shall sell or otherwise transfer all or substantially all the assets and business of the Warrant Agent, provided that it shall be qualified as aforesaid, shall be the successor Warrant Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto.

 

ARTICLE 6

 

MISCELLANEOUS

 

6.1           Amendment.  This Agreement may be amended by the parties hereto, without the consent of the holder of any Warrant Certificate, for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein, or making any other provisions with respect to matters or questions arising under this Agreement as the Company and the Warrant Agent may deem necessary or desirable; provided that such action shall not materially adversely affect the interests of the holders of the Warrant Certificates.

 

6.2           Notices And Demands To The Company And Warrant Agent.  If the Warrant Agent shall receive any notice or demand addressed to the Company by the holder of a Warrant Certificate pursuant to the provisions of the Warrant Certificates, the Warrant Agent shall promptly forward such notice or demand to the Company.

 

6.3           Addresses.  Any communication from the Company to the Warrant Agent with respect to this Agreement shall be addressed to [●], Attention: [●] and any communication from the Warrant Agent to the Company with respect to this Agreement shall be addressed to XOMA Corporation, 2910 Seventh Street, Berkeley, California 94710, Attention: [●] (or such other address as shall be specified in writing by the Warrant Agent or by the Company).

 

6.4           Governing Law.  This Agreement and each Warrant Certificate issued hereunder shall be governed by and construed in accordance with the laws of the State of New York.

 

6.5           Delivery Of Prospectus.  The Company shall furnish to the Warrant Agent sufficient copies of a prospectus meeting the requirements of the Securities Act of 1933, as amended, relating to the Warrant Debt Securities deliverable upon exercise of the Warrants (the “Prospectus”), and the Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent will deliver to the holder of the Warrant Certificate evidencing such Warrant, prior to or concurrently with the delivery of the Warrant Debt Securities issued upon such exercise, a Prospectus. The Warrant Agent shall not, by reason of any such delivery, assume any responsibility for the accuracy or adequacy of such Prospectus.

  

9.

  

 

6.6           Obtaining Of Governmental Approvals.  The Company will from time to time take all action which may be necessary to obtain and keep effective any and all permits, consents and approvals of governmental agencies and authorities and securities act filings under United States Federal and state laws (including without limitation a registration statement in respect of the Warrants and Warrant Debt Securities under the Securities Act of 1933, as amended), which may be or become requisite in connection with the issuance, sale, transfer, and delivery of the Warrant Debt Securities issued upon exercise of the Warrants, the issuance, sale, transfer and delivery of the Warrants or upon the expiration of the period during which the Warrants are exercisable.

 

6.7           Persons Having Rights Under Warrant Agreement.  Nothing in this Agreement shall give to any person other than the Company, the Warrant Agent and the holders of the Warrant Certificates any right, remedy or claim under or by reason of this Agreement.

 

6.8           Headings.  The descriptive headings of the several Articles and Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

6.9           Counterparts.  This Agreement may be executed in any number of counterparts, each of which as so executed shall be deemed to be an original, but such counterparts shall together constitute but one and the same instrument.

 

6.10         Inspection Of Agreement.  A copy of this Agreement shall be available at all reasonable times at the principal corporate trust office of the Warrant Agent for inspection by the holder of any Warrant Certificate. The Warrant Agent may require such holder to submit his Warrant Certificate for inspection by it.

  

10.

  

In Witness Whereof, the parties hereto have caused this Agreement to be duly executed, all as of the day and year first above written.

 

	  	
XOMA Corporation, as Company

	  	  	  
	  	  	  
	  	
By:

	  
	  	
Name:

	
 

	  	
Title:

	
 

	  	  	  
	  	  	  
	  	
Attest:

	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	
Countersigned

	  	  	  
	  	  	  
	  	
[●], as Warrant Agent

	  	  	  
	  	  	  
	  	
By:

	  
	  	
Name:

	
 

	  	
Title:

	
 

	  	  	  
	  	  	  
	  	
Attest:

	  
	 	 	 

 

 

[SIGNATURE PAGE TO DEBT SECURITIES WARRANT AGREEMENT]

  

11.

  

Exhibit A

 

FORM OF WARRANT CERTIFICATE

[FACE OF WARRANT CERTIFICATE]

 

	
[Form of Legend if Warrants are not immediately exercisable.]

	 	
[Prior to [●] Warrants evidenced by this Warrant Certificate cannot be exercised.]

EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT AGENT AS

PROVIDED HEREIN

VOID AFTER [●] P.M., [City] time, ON [●].

  

  

  

XOMA CORPORATION

WARRANT CERTIFICATE REPRESENTING

WARRANTS TO PURCHASE

[TITLE OF WARRANT DEBT SECURITIES]

 

	
No. [●]

	
[●] Warrants

 

This certifies that [●] or registered assigns is the registered owner of the above indicated number of Warrants, each Warrant entitling such owner  to purchase, at any time [after [●] p.m., [City] time, [on [●] and] on or before [●] p.m., [City] time, on, $[●] principal amount of [Title of Warrant Debt Securities] (the “Warrant Debt Securities”) of XOMA Corporation (the “Company”) issued or to be issued under the Indenture (as hereinafter defined), on the following basis: during the period from [●], through and including [●], each Warrant shall entitle the Holder thereof, subject to the provisions of this Agreement, to purchase the principal amount of Warrant Debt Securities stated in the Warrant Certificate at the warrant price (the “Warrant Price”) of [●]% of the principal amount thereof [plus accrued amortization, if any, of the original issue discount of the Warrant Debt Securities] [plus accrued interest, if any, from the most recent date from which interest shall have been paid on the Warrant Debt Securities or, if no interest shall have been paid on the Warrant Debt Securities, from the date of their original issuance]. [The original issue discount ($[●] for each $1,000 principal amount of Warrant Debt Securities) will be amortized at a [●]% annual rate, computed on a[n] [semi-]annual basis [using a 360-day year consisting of twelve 30-day months]. The Holder may exercise the Warrants evidenced hereby by providing certain information set forth on the back hereof and by paying in full, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], the Warrant Price for each Warrant Debt Security with respect to which this Warrant is exercised to the Warrant Agent (as hereinafter defined) and by surrendering this Warrant Certificate, with the purchase form on the back hereof duly executed, at the corporate trust office of [name of Warrant Agent], or its successor as warrant agent (the “Warrant Agent”), which is, on the date hereof, at the address specified on the reverse hereof, and upon compliance with and subject to the conditions set forth herein and in the Warrant Agreement (as hereinafter defined).

 

The term “Holder” as used herein shall mean the person in whose name at the time this Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent for that purpose pursuant to Section 4 of the Warrant Agreement.

 

The Warrants evidenced by this Warrant Certificate may be exercised to purchase Warrant Debt Securities in the principal amount of $1,000 or any integral multiple thereof in registered form. Upon any exercise of fewer than all of the Warrants evidenced by this Warrant Certificate, there shall be issued to the Holder hereof a new Warrant Certificate evidencing Warrants for the aggregate principal amount of Warrant Debt Securities remaining unexercised.

 

This Warrant Certificate is issued under and in accordance with the Warrant Agreement dated as of [●] (the “Warrant Agreement”), between the Company and the Warrant Agent and is subject to the terms and provisions contained in the Warrant Agreement, to all of which terms and provisions the Holder of this Warrant Certificate consents by acceptance hereof. Copies of the Warrant Agreement are on file at the above-mentioned office of the Warrant Agent.

 

The Warrant Debt Securities to be issued and delivered upon the exercise of Warrants evidenced by this Warrant Certificate will be issued under and in accordance with an Indenture, dated as of [●] (the “ Indenture”), between the Company and [●], as trustee (such trustee, and any successors to such trustee, the “Trustee”) and will be subject to the terms and provisions contained in the Warrant Debt Securities and in the Indenture. Copies of the Indenture, including the form of the Warrant Debt Securities, are on file at the corporate trust office of the Trustee.

  

  

  

 

Transfer of this Warrant Certificate may be registered when this Warrant Certificate is surrendered at the corporate trust office of the Warrant Agent by the registered owner or such owner’s assigns, in the manner and subject to the limitations provided in the Warrant Agreement.

 

After countersignature by the Warrant Agent and prior to the expiration of this Warrant Certificate, this Warrant Certificate may be exchanged at the corporate trust office of the Warrant Agent for Warrant Certificates representing Warrants for the same aggregate principal amount of Warrant Debt Securities.

 

This Warrant Certificate shall not entitle the Holder hereof to any of the rights of a holder of the Warrant Debt Securities, including, without limitation, the right to receive payments of principal of (and premium, if any) or interest, if any, on the Warrant Debt Securities or to enforce any of the covenants of the Indenture.

 

Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

This Warrant Certificate shall not be valid or obligatory for any purpose until countersigned by the Warrant Agent.

  

  

  

In Witness Whereof, the Company has caused this Warrant to be executed in its name and on its behalf by the facsimile signatures of its duly authorized officers.

 

	
Dated:

	  	  

	  	
XOMA Corporation, as Company

	  	  	  
	  	  	  
	  	
By:

	  
	  	
Name:

	
 

	  	
Title:

	
 

	  	  	  
	  	  	  
	  	
Attest:

	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	
Countersigned

	  	  	  
	  	
[●], as Warrant Agent

	  	  	  
	  	  	  
	  	
By:

	  
	  	
Name:

	
 

	  	
Title:

	
 

	  	  	  
	  	  	  
	  	
Attest:

	  
	  	  	  

  

  

  

[REVERSE OF WARRANT CERTIFICATE]

 

(Instructions for Exercise of Warrant)

 

To exercise any Warrants evidenced hereby for Warrant Debt Securities (as hereinafter defined), the Holder must pay, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], the Warrant Price in full for Warrants exercised, to [●] [address of Warrant Agent], Attention: [●], which payment must specify the name of the Holder and the number of Warrants exercised by such Holder. In addition, the Holder must complete the information required below and present this Warrant Certificate in person or by mail (certified or registered mail is recommended) to the Warrant Agent at the appropriate address set forth above. This Warrant Certificate, completed and duly executed, must be received by the Warrant Agent within five business days of the payment.

 

(To be executed upon exercise of Warrants)

 

The undersigned hereby irrevocably elects to exercise [●] Warrants, represented by this Warrant Certificate, to purchase $[●] principal amount of the [Title of Warrant Debt Securities] (the “Warrant Debt Securities”) of XOMA Corporation and represents that he has tendered payment for such Warrant Debt Securities, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], to the order of XOMA Corporation, c/o [insert name and address of Warrant Agent], in the amount of $[●] in accordance with the terms hereof. The undersigned requests that said principal amount of Warrant Debt Securities be in fully registered form in the authorized denominations, registered in such names and delivered all as specified in accordance with the instructions set forth below.

 

If the number of Warrants exercised is less than all the Warrants evidenced hereby, the undersigned requests that a new Warrant Certificate evidencing the Warrants for the aggregate principal amount of Warrant Debt Securities remaining unexercised be issued and delivered to the undersigned unless otherwise specified in the instructions below.

 

	
Dated:

	  	  	
Name:

	  
	  	  	  	  	
Please Print

Address:

	  	  
	
(Insert Social Security or Other Identifying Number of Holder)

	  

	
Signature Guaranteed:

	  	  
	  	
Signature

	  

(Signature must conform in all respects to name of holder as specified on the face of this Warrant Certificate and must bear a signature guarantee by a FINRA member firm).

 

This Warrant may be exercised at the following addresses:

 

By hand at:

 

By mail at:

 

[Instructions as to form and delivery of Warrant Debt Securities and, if applicable, Warrant Certificates evidencing Warrants for the number of Warrant Debt Securities remaining unexercised—complete as appropriate.]

  

  

  

ASSIGNMENT

 

[Form of assignment to be executed if Warrant Holder desires to transfer Warrant]

 

For Value Received, [●] hereby sells, assigns and transfers unto:

 

 

	  	  	  
	
(Please print name and address including zip code)

	  	
Please print Social Security or other identifying number

the right represented by the within Warrant to purchase $[●] aggregate principal amount of shares [Title of Warrant Debt Securities] of XOMA Corporation to which the within Warrant relates and appoints attorney to transfer such right on the books of the Warrant Agent with full power of substitution in the premises.

 

	
Dated:

	  	  	  
	  	  	  	
Signature

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

Signature Guaranteed[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission.

 

Effective Date: June 13, 2005

 

Distributor Agreement 

 

THIS AGREEMENT is between:

 

CDW Logistics, Inc. ("CDW")

 

Address: 200 North Milwaukee Avenue Vernon Hills, Illinois 60061

 

Contact: Matt Troka       Telephone
Number: 847-968-0700     Fax Number: 847-968-0800

 

And Promark Technology. Inc ("Supplier") Address
10810 Guilford Road, Suite 101

 

City Annapolis Junction State MD  Zip Code 20701

 

Contact Todd Hartung Telephone Number 800.634.0255
Fax

Number 301.725.7869 

 

		I.	Parties Supplier sells computer systems, related products and software of various manufacturers. CDW desires to resell the
computer systems, related products and software offered by Supplier. Each party represents that it has all rights and authority
to enter into this Agreement and undertake the obligations contained herein. 

 

		II.	Scope of this Agreement Subject to the terms and conditions of this Agreement, including any Exhibits, attached hereto and
incorporated herein, Supplier agrees to sell and CDW agrees to purchase the Products <as defined below) during the term of this
Agreement.

 

		III.	Entire Agreement This Agreement, including any Exhibits, contains the entire understanding and agreement of the parties with
respect to the subject matter herein, and supersedes all other communications or agreements, whether oral or written, relating
to the subject matter hereof.

 

EACH PARTY ACKNOWLEDGES THAT IT HAS READ, UNDERSTANDS
AND AGREES TO BE BOUND BY ALL OF THE TERMS AND CONDITIONS OF THIS AGREEMENT INCLUDING ANY EXHIBITS. ANY ADDITIONAL OR DIFFERENT
TERMS IN ANY FORMS DELIVERED BY SUPPLIER ARE HEREBY DEEMED TO BE MATERIAL AND NOTICE OF OBJECTION TO THEM AND REJECTION OF THEM
IS HEREBY GIVEN.

 

	[Supplier] Promark Technology	CDW Logistics, Inc.
	 	 
	Signature  /s/ Dale Foster	Signature /s/ Doug Eckrote
	 	 
	Print Name Dale Foster	Print Name Doug Eckrote
	 	 
	Title President	Title President
	 	 
	Date 06/13/2005	Date 06/30/05

 

    	06/13/2005	Page 1 of 7	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission.

 

Terms and Conditions 

 

		1.	Appointment as a Distributor

 

		1.1	Supplier appoints CDW as an independent non-exclusive representative for the purpose of selling
the Products to End-Users.

 

		1.2	"End-Users" means any person or entity that acquires a Product from CDW.

 

		1.3	CDW may appoint its affiliates as sub-resellers to market and sell the Products to End-Users. For
purposes of this Agreement, "affiliates" shall mean any direct or indirect subsidiary or parent of CDW and any direct
or indirect subsidiary of any such parent entity of CDW.

 

		1.4	Nothing in this Agreement shall prevent CDW from marketing products or services of other suppliers or distributors even if
such products or services may be similar to the Products hereunder.

 

		2.	Products 

 

		2.1	"Products" means the computer systems, related
products, and software made available by Supplier to CDW from time to time (collectively, the "Products").

 

		2.2.	CDW may make modifications to the Products for resale to End-Users.

 

		2.3	Supplier reserves the right to discontinue any Products
upon ninety (90) days prior written notice to CDW. Supplier may add Products at any time upon written notice to CDW. All such
added products shall be Products as defined herein.

 

		2.4	Supplier shall assemble and ship the Products in a timely
manner. [***] Supplier may, with prior approval from CDW send partial shipments with prior notice.

 

		2.6	Supplier shall offer a pass through of the Manufacture's Warranty directly to the End-User.

 

		2.6	CDW may export Products from the United States, including
software, which will be in accordance with U.S export guidelines and requirements. CDW shall not export the Products into the
embargoed countries identified by the United States Department of Commerce.

 

		2.7	The parties agree that Supplier shall serve as the importer
of record of the Products into the United States. Supplier shall be responsible for complying with all relevant customs, laws
and regulations, and for the payment of any duties, fees and other taxes imposed on the Products by reason of their importation
into the United States. Supplier will neither cause nor permit CDW's name to be shown as "Importer of Record" on any
customs entry, declaration or other document.

 

		3.	Marketing Assistance 

 

		3.1	Supplier shall provide CDW, at no cost, with all available
information relating to the Products, including Product specifications, part lists, service manuals and instructions. Supplier
shall also provide, at no cost to CDW, marketing support services and training programs for sales and technical support. Supplier
authorizes CDW to reproduce all such materials for its internal use without payment of any fees to Supplier

 

		3.2	[***]

 

		4.	Term

 

		4.1	This Agreement shall commence on the Effective Date specified
on the first page of this Agreement and continue in effect until terminated as provided herein.

 

		4.2	Either Supplier or CDW may terminate this Agreement without
cause at any time upon thirty (30) days prior written notice.

 

    	06/13/2005	Page 2 of 7	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission. 

 

		4.3	This Agreement may also be terminated upon written notice
by either party: (a) upon thirty (30) days prior written n the other party commits a material breach of this Agreement and fails
to cure such breach within thirty (30) days of such notice; or (b) immediately if the other party has filed for or has instituted
against it any proceedings as to its bankruptcy, insolvency,
reorganization, liquidation, receivership or dissolution or there is an assignment for the benefit of creditors.

 

		4.4	Termination of this Agreement shall not affect the obligations
of either Supplier or CDW under any orders accepted by Supplier prior to the effective date of termination.

 

		4.5	[***]

 

		4.6	The terms and conditions of this Agreement shall survive
for the purpose of allowing CDW to resell the Products in accordance with Sections 4.4 and 4.5 herein.

 

		5.	Orders, Delivery and Acceptance

 

		5.1	CDW shall place all purchase orders via facsimile, e-mail,
electronic data interchange or such other means acceptable to CDW. "Purchase orders, including any changes, shall
be considered valid only if i>sued by a representative of CDW's Purchasing Department. Supplier shall, within twenty-four (24)
hours after receipt of CDW's purchase order, submit to CDW a Purchase Order Receipt Acknowledgement. The Purchase Order Receipt
Acknowledgement shall note any adjustments, including back orders, price and quantity relating to the order but shall not alter
or change any other term or condition of this Agreement.

 

		5.2	Supplier shall include the purchase order number and
purchase order line number on all correspondence sent to CDW with respect to a purchase. Failure to include a purchase order number
on an invoice may result in non-payment of the invoice. All boxes containing CDW's orders must also have the purchase order number
visible on the shipping label. If Supplier drop ships the Products directly to the End-User, Supplier must place CDW's logo on
the packing slip.

 

		5.3	[***]

 

		5.4	Supplier shall use best efforts to deliver the Products
on or before the delivery dates specified on the purchase order. If Supplier cannot deliver the Products on or before the dates
specified on the purchase order, Supplier shall, prior to the delivery date, issue an updated delivery date to CDW.

 

		5.5	Supplier shall be responsible for providing adequate
packaging, tagging, labeling, packing, shipping and billing reasonably requested by CDW and/or established by applicable laws,
regulations, carrier tariffs and classification. Supplier shall ship only the quantities ordered by CDW and Supplier shall make
no substitutions without CDW's prior written approval. Supplier may make partial deliveries of CDW's orders. CDW may, in its sole
discretion, refuse over shipments. Supplier shall communicate any shipment discrepancies to CDW in a timely manner, If such discrepancies
are not communicated to CDW within thirty (30) days from the date of shipment to CDW then the matter shall be deemed .losed.

 

		5.6	CDW reserves the right to cancel or reschedule an order
without incurring any cancellation or rescheduling fee as long as the Products have not been shipped. CDW may cancel or
reschedule an order by facsimile, e-mail, or such other means acceptable to CDW. Supplier shall within twenty-four (24) hours
of receipt of such notice forward to CDW a written confirmation of any such cancelled or rescheduled order. Notwithstanding the
foregoing, CDW shall not be responsible for Supplier's failure to cancel the order on its system. Furthermore, CDW shall not be
liable for any shipping or handling charges associated with a cancelled or rescheduled order.

 

		5.7	All Products shall be subject to final inspection and
acceptance by CDW and any Products that do not comply with this Agreement, the purchase order or which are damaged or contain
defective material or workmanship may be rejected by CDW. Title to Products will not pass to CDW (i) until inspection and acceptance
of the Products at CDW's location, or (ii) if the Products
are shipped directly to an End-User until the End-User inspects and accepts the Products. Title to software shall remain with
Supplier or its licensor.

 

    	06/13/2005	Page 3 of 7	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission. 

 

		5.8	[***]

 

		5.9	Supplier shall comply with CDW's Freight Receiving Policies
and Procedures. Supplier should contact CDW ' s Purchasing
Department to obtain a current version of such Policies and Procedures.

 

		6.	Prices and Payment Terms

 

		6.1	The purchase price for Products, including discounts,
shall be in accordance with the pricing schedule provided to CDW by Supplier. [***]

 

		6.2	Supplier shall
                                                                                invoice CDW upon shipment of the Products. [***]

 

		6.3	[***] CDW
                                                                                shall provide a copy of its Illinois Sales Tax
                                                                                Exemption Certificate upon request.

 

		6.4	[***]

 

		6.5	[***]

 

		6.6	[***]

 

		6.7	[***]

 

		7.	Product Returns and Account Reconciliation 

 

		7.1	[***]

 

		7.2	[***]

 

		7.3	[***]

 

		7.4	Supplier shall transmit all invoices with purchase order
numbers, product descriptions, part numbers, quantity, dollar amounts and serial numbers. Invoices shall display tracking numbers
so that mis-shipments and Product shortages can be resolved.

 

    	06/13/2005	Page 4 of 7	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission. 

 

		7.5	Supplier shall provide CDW with a monthly reconciliation
statement on the first day of every month. All such statements shall list CDW's purchase order numbers. In addition to the foregoing,
Supplier and CDW shall meet prior to the 20th of each month
to resolve any open issues.

 

		7.6	[***]

 

		8.	Trademarks

 

		8.1	During the term of this Agreement, CDW shall be authorized
to use the manufacturer and Supplier's trademarks, trade names, logos, and product designations in the sale or advertising of
the Products in accordance with the manufacturer and Supplier's policies as communicated in writing by Supplier to CDW. CDW shall
acquire no rights under this Agreement in any trademark, trade name or logo of Supplier.

 

		8.2	If Supplier has provided CDW with any photos to be used
as part of a promotion, advertisement, website, or any other public use, Supplier hereby grants CDW a non-exclusive, royalty-free
license to reproduce the photos solely for such promotional use. In addition, CDW may, at its own expense and without payment
to Supplier, use photographs of the Products that are taken by CDW. All such photographs taken by CDW shall remain the property
of CDW. CDW may also reproduce materials related to the Product including, without limitation, any Product descriptions, specifications
or Product images, wherever published, including those contained on Supplier's internet site or in Supplier's catalogs.

 

		8.3	Supplier shall not use CDW's trademarks, trade name or
logos without CDW's prior written consent.

 

		9.	Warranties and Indemnification

 

		9.1	Supplier hereby represents and warrants that it has all
right, title and ownership interest necessary to sell the Products to CDW. Supplier further represents and warrants that: (a)
it has not entered into any agreements or commitments that are inconsistent with or conflict with the rights granted to CDW in
this Agreement; (b) the Products are new; and (c) the Products are free and clear of all liens and encumbrances.

 

		9.2	Supplier shall defend, indemnify and hold CDW, its affiliates
and their officers, directors, employees, and agents harmless, without limitation, from and against any and all claims, demands,
actions, lawsuits, proceedings, liabilities, losses, costs and
expenses (including reasonable attorneys' fees) arising out of any actual or alleged (a) unfair or deceptive advertising or other
similar claims based on advertising, marketing or packaging content provided by Supplier or the manufacturer; (b) bodily
injury or death of any person or damage to property arising from the Products, including the use thereof; (c) infringement of
any patent, trademark, trade name, copyright, trade secret or other proprietary or privacy right of a third party in connection
with the Products; (d) failure of the Products to conform to published specifications; (e) defect in the Products, patent or latent,
including improper construction and/or design; (I) violation of any federal, state or local laws, rules, regulations, or ordinances
in the manufacturing or sale of the Products; and (g) inadequate warning and/or instructions in connection with the Products.
For purposes of this Section 9.2, affiliates of CDW shall be deemed to be third party beneficiaries and shall have the right to
enforce all rights and obligations directly against Supplier.

 

		10.	Limitation of Liability

 

EXCEPT FOR SUPPLIER'S OBLIGATIONS
UNDER SECTION 9.2, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR DIRECT DAMAGES IN EXCESS OF THE LESSER OF THE PURCHASE PRICE OF
THE PRODUCTS GIVING RISE TO THE CLAIM OR ONE MILLION DOLLARS ($1,000,000.00). EXCEPT FOR SUPPLIER'S OBLIGATIONS UNDER SECTION 9.2,
NEITHER PARTY SHALL BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, PUNITIVE, SPECIAL, EXEMPLARY OR INDIRECT DAMAGES (INCLUDING LOST
PROFITS OR SAVINGS), EVEN IF SUCH PARTY WAS ADVISED OF THE POSSIBILITY OF THE OCCURRENCE OF SUCH DAMAGES.

 

    	06/13/2005	Page 5 of 7	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission.

 

		11.	Software

 

		11.1	Title
to all software Products supplied to CDW under this Agreement shall remain with Supplier or its licensors and CDW shall
acquire no rights to any software Product, except to the extent CDW acquires the right to use software Products as an end-user,
in which case it will be bound by the applicable end-user agreement.

 

		11.2	Supplier grants to CDW a non-transferable and non-exclusive
right to distribute the software Products and documentation it obtains under this Agreement to End-Users.

 

		11.3	Any license agreement required by Supplier in connection
with the software products shall be entered into by Supplier and the End-User.

 

		12.	Confidential Information

 

The parties understand and agree that all terms and conditions
of this Agreement and all exchanges in connection therewith shall be deemed to be "Confidential Information" of each
party as defined in the Mutual Non-Disclosure Agreement dated May 31, 2005and shall be subject to and governed by the terms
and conditions of the Mutual Non-Disclosure Agreement.

 

		13.	Notices.

 

Notices provided under this Agreement will be given in writing
and deemed received upon the earlier of actual receipt or three (3) days after mailing if mailed postage prepaid by regular mail
or airmail to the address set forth below, or one (1) day after such notice is sent by courier or facsimile transmission. A facsimile
counterpart of any notice may be delivered to the parties and each party
adopts its signature on the facsimile as its original signature and agrees that the facsimile will have the same effect as if the
document had been signed and delivered by mail or in person. 

 

	If to CDW:	with a copy to
	 	 
	CDW Logistics, Inc.	CDW Corporation
	200 N. Milwaukee Avenue	200 N. Milwaukee Avenue
	Vernon Hills, IL 60061	Vernon Hills, IL 60061
	Attention: Senior Vice President,	Attention: General Counsel
	Purchasing and Operations	 

 

	If to Supplier:	with a copy to:
	Promark Technology, Inc	Promark Technology. Inc
	10810 Guilford Road, STE 101	10810 Guilford Road. STE 101
	Annapolis Junction. MD 20701	Annapolis Junction, MD 20701
	Attn : Dale Foster, President	Attn: Todd Hartung, Vice President

 

		14.	General.

 

		14.1	THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAWS RULES. ANY ACTION ARISING OUT OF A DISPUTE BETWEEN THE PARTIES SHALL BE BROUGHT
IN COOK COUNTY, ILLINOIS AND SUPPLIER CONSENTS TO THE JURISDICTION OF THE FEDERAL AND STATE COURTS LOCATED IN COOK COUNTY, ILLINOIS
AND SUBMITS TO THE JURISDICTION THEREOF AND WAIVES THE RIGHT TO CHANGE VENUE. SUPPLIER FURTHER CONSENTS TO THE EXERCISE OF PERSONAL
JURISDICTION BY ANY SUCH COURT WITH REPECT TO ANY SUCH PROCEEDING. ALL REMEDIES SET FORTH IN THIS AGREEMENT ARE IN ADDITION TO,
AND NOT IN LIEU OF THE REMEDIES A V AILABLE TO CDW AT LAW OR IN EQUITY.

 

    	06/13/2005	Page 6 of 7	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission.

 

		14.2	Neither party may assign this Agreement without the prior
written consent of the other party, and any purported assignment without such consent shall be void. Notwithstanding the foregoing,
CDW shall have the right without Supplier's consent to assign any or all of its rights and obligations under this Agreement to
any of its affiliates. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties'
successors in interest.

 

		14.3	Except as otherwise provided in this Agreement, this
Agreement may not be extended, supplemented or modified in any way except in a writing signed by an authorized representative
of each party.

 

		14.4	If any term or provision of this Agreement is found by
a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable, the same shall not affect the other terms
or provisions hereof or the whole of this Agreement, but such term or provision shall be deemed modified to the extent necessary
in the court's opinion to render such term or provision enforceable,
and the rights and obligations of the parties shall be construed and enforced accordingly, preserving to the fullest permissible
extent the intent and agreements of the parties herein set forth.

 

		14.5	Those terms and conditions which would, by their meaning
or intent, survive the termination of this Agreement shall so survive.

 

		14.6	The delay or failure by either party to exercise or enforce
any of its rights under this Agreement shall not constitute or be deemed a waiver of that party's right thereafter to enforce
those rights. Any waiver granted hereunder must be in writing, signed by the parties and shall be valid only in the specific
instance in which given.

 

		14.7	The relationship of Supplier and CDW under this Agreement
is that of seller and buyer only and neither is authorized to act as the agent of the other. No franchise is intended or created
by the relationship of Supplier and CDW under this Agreement.

 

		14.8	Each party represents that this Agreement shall have
been executed by a duly authorized representative with full power and authority to legally bind such party.

 

[END OF DOCUMENT

 

    	06/13/2005	Page 7 of 7	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission.

 

 MUTUAL NON-DISCLOSURE AGREEMENT

 

This Agreement is made and entered into
this 31st day of May , 2005 by and between the undersigned (the "CDW Contracting Party") and Promark Technology,
Inc. under the following terms and conditions:

 

		1.	Nature and Purpose. The parties to this Agreement desire to engage in certain business arrangements and/or contractual relationships
which may involve the disclosure of financial, proprietary, competitively sensitive, and/or market sensitive information and/or
contain trade secrets. The purpose of this Agreement is to define their rights and obligations with respect to such information.
This Agreement does not obligate either party to disclose any information to the other or to enter into any other agreement or
arrangement, nor shall it be construed as granting any rights by license or otherwise in any trade secrets or other intellectual
property rights of either party. As provided for herein, the parties' obligations under this Agreement shall survive the termination
of their business arrangements and/or contractual relationships, regardless of the manner of such termination.

 

		2.	Confidential Information. Either party ("Discloser") may at its option make available to the other party ("Recipient")
in the performance of this Agreement information of a confidential or proprietary nature to such party, including information of
its affiliates or of a third party (hereinafter referred to as "Confidential Information"). As used in this Agreement,
the Confidential Information shall mean any information or data in oral and/or written form which Recipient knows or has reason
to know is Confidential Information and which is disclosed in connection with this Agreement or which Recipient may have access
to in connection with this Agreement, including but not limited to business and marketing plans, strategic alliances, cost or pricing
data, the identities of customers and prospective customers. To the extent practicable, Confidential Information shall be clearly
identified or labeled as such at the time of disclosure or as promptly thereafter as possible, however, failure to so identify
or label such Confidential Information shall not be evidence that such information is not proprietary or protectable. Confidential
Information shall not include any information which (a) was rightfully in the possession of Recipient prior to disclosure by Discloser;
(b) was or is independently developed by Recipient without use of the Confidential Information; (c) is now or hereafter becomes
available to the public other than as a result of disclosure by Recipient in violation of this Agreement; or (d) becomes available
to Recipient on a non-confidential basis from a source other than Discloser and such source was under no obligation to Discloser
to keep such information confidential.

 

		3.	Degree of Care. Recipient shall maintain the Confidential Information using the same degree of care as it uses to protect its
own confidential and proprietary information but in any case using no less than a reasonable degree of care. In addition, Recipient
shall not use the Confidential Information received from Discloser for its own benefit or, except as expressly provided for herein,
disclose the Confidential Information to third parties without the prior written consent of an authorized representative of Discloser.

 

		4.	Disclosure. Recipient agrees to disclose the Confidential Information
only to its directors, officers, employees, agents, independent contractors and consultants who have a need to know the Confidential
Information as required in furtherance of the objectives of the business relationship between the parties, and with respect to
independent contractors and consultants, only those who have agreed to substantially similar non-disclosure obligations
as those contained herein. Notwithstanding the foregoing, the CDW Contracting Party may disclose the Confidential Information to
its affiliates and their directors, officers, employees and agents who may also have a need to know the Confidential Information
in furtherance of the business relationship.

 

MNDA

12/10/04

    	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission.

 

		1.	Legal Action Requiring Disclosure. If Recipient is required by law, rule or regulation, or requested in any judicial
or administrative proceeding or by any governmental or regulatory authority, to disclose the Confidential Information, Recipient
shall give Discloser prompt notice of such request so that Discloser may seek an appropriate protective order or similar protective
measure. Upon Discloser's written request Recipient shall, at Discloser's expense, cooperate with Discloser in seeking such order
or similar protective measure. If Recipient is nonetheless compelled to disclose the Confidential Information, Recipient shall
disclose only that portion of the Confidential Information, which Recipient is legally required to disclose and upon Discloser's
request and expense, shall use reasonable efforts to obtain assurances that confidential treatment will be accorded to such Confidential
Information to the extent such assurances are available.

 

		2.	Return Or Destruction Of Confidential Information. Recipient is hereby authorized to make only the number of copies
of the Confidential Information necessary to disseminate the Confidential Information to those who are entitled to have access
to it, and ensure that all confidentiality notices set forth on the Confidential Information are reproduced in full on such copies.
At the written request of Discloser, Recipient agrees to return or, at Discloser's sole discretion, destroy all materials in its
possession and control, which contain any Confidential Information and shall, at Discloser's written request, certify in writing
to Discloser that all copies (in any form or media) have been destroyed or returned to Discloser.

 

		3.	Limitation On Use. Recipient shall use the Confidential Information
only in connection with the furtherance of the business relationship between the parties, and Recipient shall make no further use,
in whole or in part, of any Confidential Information. However, nothing in this Agreement shall restrict Discloser from using, disclosing,
or disseminating its own Confidential Information in any way. 

 

		4.	Injunctive Relief. Each party acknowledges that unauthorized disclosure or use of the Confidential Information by Recipient
may cause irreparable harm and damage to the business of Discloser which may be difficult to ascertain and which may not be adequately
compensated by damages at law. Therefore, each party agrees that, in the event of a breach or threatened breach of the terms of
this Agreement, Discloser shall be entitled to an injunction prohibiting any unauthorized disclosure or use of its Confidential
Information. Any such injunctive relief shall be in addition to, and not in lieu of, any appropriate monetary damages.

 

		5.	Term of Confidentiality. Recipient shall maintain the Confidential
Information III accordance with this Agreement for a period of
five (5) years from the date of disclosure. 

 

		6.	Validity. In the event of the invalidity or unenforceability of any provision of this Agreement under applicable law,
the parties agree that such invalidity or unenforceability shall not affect the validity or enforceability of the remaining portions
of this Agreement.

 

MNDA

12/10/04

 

    	 

    	 

    

 

[***] – Indicates omission pursuant to a request for confidential
treatment. The omitted text has been filed separately with the Securities and Exchange Commission.

 

		1.	Assignment. This Agreement shall not be assigned by either party without the prior written consent of the other party,
and any purported assignment without such consent shall be void. This approval requirement shall not apply to the assignment to
any successor corporation in the event of a merger or acquisition. In addition, the CDW Contracting Party shall have the right,
without consent, to assign any or all of its rights and obligations under this Agreement to any of its affiliates. Subject to the
foregoing, this Agreement shall be binding upon and inure to the benefit of the parties' successors in interest.

 

		2.	Miscellaneous. This Agreement constitutes the entire agreement between the parties with respect to the subject matter
hereof, and shall supersede all previous communications, representations, understandings, and agreements, either oral or written,
between the parties thereof. This Agreement may not be changed or modified except by a written agreement signed by the parties
hereto. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois without regard to
its conflicts of law rules. Any action arising out of a dispute between the parties shall be brought in the courts located in Cook
County, Illinois and each party consents to the jurisdiction of the federal and state courts located in Cook County, Illinois and
submits to the jurisdiction thereof and waives the right to change venue.

 

IN WITNESS WHEREOF, the parties
have caused this Agreement to be executed by their duly authorized officers as of the date and year first set forth above.

 

	PROMARK TECHNOLOGY, INC.	 	THE CDW CONTRACTING PARTY
	 	 	 
	By:	/s/ Dale R. Foster	 	By:	 
	 	 	 	 
	Name :	Dale R. Foster	 	Name :	 
	 	 	 
	Title:	President	 	Title:	 
	 	 	 
	Address: 10810 Guilford Road, Suite 101 Address:	 	Address:	 

 

Annapolis Junction, MD 20701

 

MNDA

12/10/04

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