Document:

smsi-ex1012_64.htm

 

Exhibit 10.12

 

 

March 5, 2018

 

 

Andrew Arno

160 Riverside Boulevard, Apt 31D

New York, New York, 10069

Email:  aarno9@gmail.com

 

	
 
	
Re:
	
Conversion of Smith Micro Software, Inc. (the “Company”) Series B 10% Convertible Preferred Stock

 

Mr. Arno:

 

Reference is hereby made to that certain Securities Purchase Agreement, dated as of September 29, 2017 (the “Purchase Agreement”), by and among the Company and each purchaser identified on the signature pages thereto.  You have purchased shares of the Company’s Series B 10% Convertible Preferred Stock (the “Series B Preferred”) pursuant to the Purchase Agreement.  Pursuant to Section 6(a) of the Certificate of Designation of Preferences, Rights and Limitations of the Series B Preferred delivered in connection with the Purchase Agreement (the “Certificate of Designation”), each share of the Series B Preferred is convertible at any time and from time to time at the option of the Holder (as defined in the Certificate of Designation) thereof, into a number of shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”). 

The Company is currently negotiating a private offering of additional shares of its Common Stock (the “Shares”) and Common Stock purchase warrants (the “Warrants”) to finance its ongoing capital needs (the “Proposed Transaction”).  In order to consummate the Proposed Transaction, the purchasers of the Shares and Warrants under the Proposed Transaction are requiring the Company to effectuate the conversion of certain of your shares of Series B Preferred into shares of Common Stock within a specified amount of time following the closing of the Proposed Transaction. Acknowledging the fact that the Company will need to devote considerable time and expense to finalize and close the Proposed Transaction, and in order to provide the Company with assurances that each of you will effectuate the required conversions in connection therewith, by executing this letter, you agree as follows:

	
 
	
1.
	
On or before the 75 day anniversary of the Closing Date of the Proposed Transaction, you hereby agree to convert all 50 of your shares of Series B Preferred into shares of Common Stock pursuant to the terms of the Certificate of Designation.

	
 
	
2.
	
You hereby waive your piggyback registration rights as set forth in Section 6(e) of that certain Registration Rights Agreement, dated as of September 29, 2017, among the 

 

 

 

Andrew Arno

Page 2

 

 

 

	
 
		
Company and each purchaser signatory to the Purchase Agreement, pursuant to which the shares of common stock issuable upon conversion of the Series B Preferred will not be included on any resale registration statement filed for the resale of the Shares and Shares issuable upon exercise of the Warrants in the Proposed Transaction.

This letter agreement and the obligations arising hereunder shall in all cases be contingent upon the closing of the Proposed Transaction.  The Company hereby covenants to provide the undersigned notice of the closing date of the Proposed Transaction at the email address above within one trading day of the closing date of the Proposed Transaction.  You agree to utilize the Notice of Conversion attached to this letter in accordance with the timing parameters outlined in this letter agreement.  To the extent the Proposed Transaction is not consummated, this letter agreement will be of no further force or effect.  

If you are in agreement with the foregoing, please execute and return a copy of this letter to thuffmyer@smithmicro.com at which time it will become a binding agreement upon the parties hereto, contingent upon the closing of the Proposed Transaction.

[remainder of page intentionally left blank]

 

 

 

Very truly yours,

SMITH MICRO SOFTWARE, INC.

By:  /s/Timothy C. Huffmyer

Name: Timothy C. Huffmyer

Title: Vice President and Chief Financial Officer

 

 

 

 

 

 

Accepted and agreed to on

this 5th day of March, 2018.

 

 

 

/s/Andrew Arno

Andrew Arno

 

 

 

NOTICE OF CONVERSION

(To be Executed by the Registered Holder in order to Convert Shares of Preferred Stock)

The undersigned hereby elects to convert the number of shares of Series B 10% Convertible Preferred Stock indicated below into shares of common stock, par value $0.001 per share (the “Common Stock”), of Smith Micro Software, Inc., a Delaware corporation (the “Corporation”), according to the conditions hereof, as of the date written below.  If shares of Common Stock are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as may be required by the Corporation in accordance with the Purchase Agreement.  No fee will be charged to the Holders for any conversion, except for any such transfer taxes.

Conversion calculations: 

	
 
	
 

	
Date to Effect Conversion: _____________________________________________

	
Number of shares of Preferred Stock owned prior to Conversion: _______________

	
Number of shares of Preferred Stock to be Converted: ________________________

	
Stated Value of shares of Preferred Stock to be Converted: ____________________

	
Number of shares of Common Stock to be Issued: ___________________________

	
Applicable Conversion Price:____________________________________________

	
Number of shares of Preferred Stock subsequent to Conversion: ________________

	
Address for Delivery: ______________________

or

DWAC Instructions:

Broker no: _________

Account no: ___________

	
[HOLDER]

By:

Name:

Title:smsi-ex1013_62.htm

 

Exhibit 10.13

 

LOCK-UP AGREEMENT

 

March 5, 2018

 

Each Purchaser referenced below:

 

	
 
	
Re:
	
Securities Purchase Agreement, dated as of March 5, 2018 (the “Purchase Agreement”), between Smith Micro Software, Inc., a Delaware corporation (the “Company”) and the purchasers signatory thereto (each, a “Purchaser” and, collectively, the “Purchasers”)

Ladies and Gentlemen:

Defined terms not otherwise defined in this letter agreement (the “Letter Agreement”) shall have the meanings set forth in the Purchase Agreement.  Pursuant to Section 2.2(a)(viii) of the Purchase Agreement and in satisfaction of a condition of the Company’s obligations under the Purchase Agreement, the undersigned irrevocably agrees with the Company that, from the date hereof until 180 days following the date of the Purchase Agreement (such period, the “Restriction Period”), the undersigned will not offer, sell,  contract to sell, hypothecate, pledge or otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by the undersigned or any Affiliate of the undersigned or any person in privity with the undersigned or any Affiliate of the undersigned), directly or indirectly, including the filing (or participation in the filing) of a registration statement with the Commission in respect of, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act with respect to, any shares of Common Stock or Common Stock Equivalents beneficially owned, held or hereafter acquired by the undersigned (the “Securities”), provided, however, that such restrictions shall not apply to, or limit the undersigned’s ability to effectuate, the conversion of Series B Preferred held by the undersigned into shares of Common Stock during the Restriction Period, as contemplated by the terms of the Purchase Agreement, provided further that any shares of Common Stock issued or issuable upon conversion of the Series B Preferred shall be subject to the provisions of this Letter Agreement.  Beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act.

 

In order to enforce this covenant, the Company shall impose irrevocable stop-transfer instructions preventing the Transfer Agent from effecting any actions in violation of this Letter Agreement.

 

The undersigned acknowledges that the execution, delivery and performance of this Letter Agreement is a material inducement to each Purchaser to complete the transactions contemplated by the Purchase Agreement and that each Purchaser (which shall be a third party beneficiary of this Letter Agreement) and the Company shall be entitled to specific performance of the undersigned’s obligations hereunder.  The undersigned hereby represents that the undersigned has the power and authority to execute, deliver and perform this Letter Agreement, that the 

 

 

undersigned has received adequate consideration therefor and that the undersigned will indirectly benefit from the closing of the transactions contemplated by the Purchase Agreement.  

This Letter Agreement and the undersigned’s obligations hereunder may not be amended, waived or otherwise modified in any respect without the written consent of each of the Company, each Purchaser and the undersigned.  This Letter Agreement shall be construed and enforced in accordance with the laws of the State of New York without regard to the principles of conflict of laws. The undersigned hereby irrevocably submits to the exclusive jurisdiction of the United States District Court sitting in the Southern District of New York and the courts of the State of New York located in Manhattan, for the purposes of any suit, action or proceeding arising out of or relating to this Letter Agreement, and hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that (i) it is not personally subject to the jurisdiction of such court, (ii) the suit, action or proceeding is brought in an inconvenient forum, or (iii) the venue of the suit, action or proceeding is improper. The undersigned hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by receiving a copy thereof sent to the Company at the address in effect for notices to it under the Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  The undersigned hereby waives any right to a trial by jury.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  The undersigned agrees and understands that this Letter Agreement does not intend to create any relationship between the undersigned and each Purchaser and that each Purchaser is not entitled to cast any votes on the matters herein contemplated and that no issuance or sale of the Securities is created or intended by virtue of this Letter Agreement.

This Letter Agreement shall be binding on successors and assigns of the undersigned with respect to the Securities and any such successor or assign shall enter into a similar agreement for the benefit of the Purchasers.

 

 

*** SIGNATURE PAGE FOLLOWS***

 

 

2

 

 

This Letter Agreement may be executed in two or more counterparts, all of which when taken together may be considered one and the same agreement.

 

 

 

Signature

 

Print Name

 

Position in Company

 

Address for Notice:

 

 

 

 

 

 

Number of shares of Common Stock

 

_____________________________________________________________________________

Number of shares of Common Stock underlying subject to warrants, options, debentures or other convertible securities

By signing below, the Company agrees to enforce the restrictions on transfer set forth in this Letter Agreement.

__________________________________

 

 

By: _________________________________

Name: Timothy C. Huffmyer

Title: Vice President and Chief Financial Officer

 

 

 

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