Document:

Prepared by MERRILL CORPORATION

 

AMENDED

AND RESTATED

 

REGISTRATION

RIGHTS AGREEMENT

 

                THIS AMENDED AND RESTATED REGISTRATION RIGHTS

AGREEMENT is made and entered into as of the 29th day of August,

2001, by and among NETWORK COMPUTING DEVICES, INC., a Delaware

corporation (the "Company"), SCI TECHNOLOGY, INC., an

Alabama corporation (“SCI”), GUENTHER PFAFF, an individual

(“Pfaff”),

and HOFMANN

& CO., a Swiss Partnership (“Hofmann”).

 

ARTICLE

I

 

BACKGROUND

 

                Section 1.1.           Background.

SCI, Pfaff and Hofmann (each a “Holder” and collectively the “Holders”)

are the holders of certain convertible securities convertible into, and

Warrants to purchase, Common Stock, par value $.001 per share ("Stock"),

of the Company.  The parties

desire to provide for the registration of the shares of Stock issuable or

issued to the Holder upon conversion of the convertible securities or exercise

of the Warrants

 

Such

convertible securities and Warrants have been issued to the Holders without

registration under the Securities Act of 1933, as amended (the “Securities

Act”), and the Stock likewise has not been registered. The parties

desire to provide for the registration of the Stock.

 

SCI

and Pfaff have each entered into Registration Rights Agreements with the

Company (the “Prior Agreements”) pursuant to which the Company granted SCI and

Pfaff certain registration rights with respect to their Stock.  The parties desire to amend and restate the

Prior Agreements by terminating them and replacing them in their entirety with

this Agreement.

 

ARTICLE

II

 

DEFINITIONS

 

Section 2.1            Definitions.  For purposes of this Agreement, the

following capitalized terms have the respective meanings set forth below:

 

(a)           The term “Form S-3” means such form under the

Securities Act as in effect on the date hereof or any successor form under the

Securities Act.

 

 (b)          The

term “Holder”

means any person owning or having the right to acquire Registrable Securities

or any heirs or assigns thereof in accordance with this Agreement.

 

(c)           The term “register,” “registered,” and “registration” refers to a registration

effected by preparing and filing a registration statement or similar document

in compliance with the Securities Act, and the declaration or ordering of

effectiveness of such registration statement or document.

 

(d)           The term “Other Covered Securities” means

the shares of Common Stock of the Company issued to Tektronix, Inc. on December

8, 2000.

 

(e)           The term “Registrable Securities” means (i) the shares

of Stock, and (ii) any other securities 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 of Stock listed in clause (i) above.  Notwithstanding the foregoing, Stock or

other securities shall only be treated as Registrable Securities if and so long

as they have not been (A) effectively registered under the Securities Act and

sold or distributed to any Person pursuant to an effective registration

statement covering it, or (B) sold in a transaction exempt from the

registration and prospectus delivery requirement of the Securities Act so that

all transfer restrictions, and restrictive legends with thereto, if any, are

removed upon the consummation of such sale.

 

(f)            The number of shares of “Registrable Securities

then outstanding”

shall be the number of shares of Stock that are Registrable Securities which

are then issued and outstanding, plus those which are issuable pursuant to then

exercisable or convertible securities.

 

(g)           The term “Registration Expenses” means all expenses

incident to the Company's performance of or compliance with Article 3

including, without limitation, all registration and filing fees; all fees and

expenses of complying with securities or blue sky laws; all printing expenses;

the fees and disbursements of counsel for the Company and of its independent

public accountants, including the expenses of any special audits required by or

incident to such performance and compliance; and the reasonable fees and disbursements

of one counsel for the Holders.

 

(h)           The term “SEC” means the Securities and Exchange

Commission.

 

(i)            The term “Selling Expenses” means all underwriting

discounts, selling commissions and transfer taxes applicable to the sale of

Registrable Securities.

 

ARTICLE

III

 

REGISTRATION

RIGHTS

 

Section 3.1            Demand Registration.

 

(a)           If at any time after issuance of the

Stock to a Holder, the Company receives a written request from such Holder that

the Company file a registration statement under the Securities Act covering the

registration of all or a portion of the Registrable Securities of the Holder

then outstanding, then the Company shall as soon as practicable effect such

registration of the Registrable Securities of the Holder.  Such obligation shall include, without

limitation, the execution of an undertaking to file post-effective amendments

and to effect appropriate registrations or qualifications under applicable blue

sky or other state securities laws and appropriate compliance with exemptive

regulations issued under the Securities Act and any other governmental

requirements or regulations.

 

(b)

          If the Holder intends to use an

underwriter to distribute the Registrable Securities covered by its request, it

shall so advise the Company in its request. 

In such event, the Holder shall (together with the Company) enter into

an underwriting agreement with an underwriter selected by the Holder, subject

to the approval of the Company which shall not be unreasonably withheld.  The Company shall not register any other

securities in connection with any such demand registration, other than

Registrable Securities, Other Covered Securities and securities registered for

its own account.  Notwithstanding any

other provision of this subsection, if the underwriter advises the Holder and

the Company in writing that marketing factors require a limitation of the

number of shares to be included in the underwriting, then shares, if any, other

than Registrable Securities and Other Covered Securities shall first be excluded

from such registration to the extent required by such underwriting limitation,

and thereafter, Registrable Securities and Other Covered Securities shall be

excluded in proportion, as nearly as practicable, to the respective amounts of

Registrable Securities and Other Covered Securities held by such Holders and

such other holders. If the number of shares of Registrable Securities so

excluded exceeds twenty percent (20%) of the number of shares of Registrable

Securities which the Holder has requested be included in such registration,

then the Holder shall be entitled either (i) to require that the registration

be deferred for such period of time as the Holder, the Company and the

underwriter may mutually agree upon, but in no event for more than ninety (90) days

from delivery of a written notice of the Holder to the Company requesting such

delay, or (ii) to withdraw the registration request, in which case it shall not

count as a demand registration for purposes of the limitation in Section

3.1(d). The Company shall not effect a public offering of any

securities of the Company similar to the Registrable Securities being offered

in the underwritten offering, or convertible or exercisable for Registrable

Securities during the period commencing ten (10) days prior to and ending one

hundred twenty (120) days after the effective date of the applicable

registration statement, other than a sale of Other Covered Securities.

 

(c)           Notwithstanding the foregoing, if the

Company shall furnish to the Holder a certificate signed by the President or

Chief Executive Officer of the Company stating that, in the good faith judgment

of the board of directors of the Company, it would be seriously detrimental to

the Company and its shareholders for such registration statement to be filed

and it is therefore essential to defer the filing of such registration

statement, the Company shall have the right to defer such filing for a period

not more than ninety (90) days after receipt of the request of the Holder; provided,

however, that the Company may not utilize this right more than once

in any 12-month period.

 

(d)           Notwithstanding the foregoing, the

Company shall not be obligated to take any action to effect any registration,

qualification or compliance pursuant to this Section 3.1 in any particular

jurisdiction in which the Company would be required to execute a general

consent to service of process in effecting such registration, qualification or

compliance unless the Company is already subject to service in such

jurisdiction.

 

(e)           The Company shall not be obligated to

effect, or to take any action to effect, any registration pursuant to Section

3.1(a) at the request of any Holder after the Company has effected

two demand registrations at such Holder’s request and each such registration

has been declared or ordered effective and kept effective for at least one

hundred twenty (120) days. 

Notwithstanding the immediately preceding sentence or the provisions of Section

3.1(b), a registration will not count as a demand registration under

Section 3.1(a)

unless the Holder was able to sell a minimum of seventy-five (75%) of the

shares sought to be registered in such registration.

 

Section 3.2.           Company Registration.  If at any time the Company proposes to

register any of its securities under the Securities Act, whether or not for

sale for its own account, on a form and in a manner which would permit

registration of its shares for sale to the public under the Securities Act

(other than a registration statement relating either to the sale of securities

to employees of the Company pursuant to a stock option, stock purchase or

similar plan, an offering or sale of securities pursuant to a Form S-4 (or

successor form) registration statement, or an SEC Rule 145 transaction), it

will each such time give prompt written notice to the Holder of its intention

to do so, describing such securities and specifying the form and manner and the

other relevant facts involved in such proposed registration, and upon the

written request of the Holder delivered to the Company within thirty (30) days

after the giving of any such notice, the Company will effect the registration

under the Securities Act of all Registrable Securities which the Company has

been so requested to register by the Holder to the extent required to permit the

disposition (in accordance with the intended methods thereof as

aforesaid).  The Company will use its

commercially reasonable efforts to cause the Registrable Securities as to which

registration shall have been so requested to be included in the securities to

be covered by the registration statement proposed to be filed by the Company,

all to the extent required to permit the sale or other disposition by the

Holder of such Registrable Securities so registered.  If any registration pursuant to this Section 3.2 shall be, in

whole or in part, an underwritten public offering of securities, the Company

shall so advise the Holders as a part of the written notice given pursuant to

this Section 3.2.  In such event the

right of any Holder to registration pursuant to this Section 3.2 shall be

conditioned upon such Holder’s participation in such underwriting to the extent

provided herein.  All Holders proposing

to distribute their securities through such underwriting shall (together with

the Company and the other holders distributing their securities through such

underwriting) enter into an underwriting agreement in customary form with the

managing underwriter selected for such underwriting by the Company, but subject

to the reasonable approval of Holders holding more than a majority of the

Registrable Securities to be included in such registration. Notwithstanding any

other provision of this Section 3.2, if the managing underwriter determines

that marketing factors require limitation of the number of shares to be underwritten,

the managing underwriter may limit the Registrable Securities to be included in

such registration.  The Company shall so

advise all Holders and other holders distributing their securities through such

underwriting and the number of shares of securities that may be included in the

registration and underwriting (other than in behalf of the Company) shall be

allocated among all Holders and such other holders (provided that such other

holders have contractual rights to participate in such registration which are

not subordinate to the Holders’) in proportion, as nearly as practicable, to

the respective amounts of Registrable Securities held by such Holders and such

other holders.

 

Section 3.3            Form S-3 Registration.  If, at a time when Form S-3 (or any comparable

successor form) is available for the registration of Registrable Securities and

the Company is eligible to use Form S-3 (or such successor form) for such

registration, the Company shall receive from a Holder a written request that

the Company effect a registration on Form S-3 (or such successor form) of any

of the Holder's Registrable Securities, the Company will promptly give written

notice of the proposed registration to the Holder and, as soon as practicable,

effect such registration and all such related qualifications and compliances as

may be reasonably requested and as would permit or facilitate the sale and

distribution of all Registered Securities as are specified in such

request.  The rights of each Holder to

request registration under this Section 3.3 shall be in addition to all

other registration rights in this Agreement. 

The Company shall have no obligation to effect a registration under Section 3.3

more than three times for any particular Holder.

 

Section 3.4.           Registration Expenses.  All Registration Expenses incurred in

connection with any registration, qualification or compliance pursuant to Sections

3.1, 3.2 and 3.3 shall be borne by the Company; and all Selling

Expenses shall be borne by each Holder and any other holders of the securities

so registered pro rata on the basis of the number of their shares so

registered.

 

                Section 3.5. Registration Procedures.

 

(a)           When the Company is required to

effect the registration of any Registrable Securities under the Securities Act

as provided in this Article 3, the Company shall as

expeditiously as possible:

 

(i)            prepare and file with the SEC a

registration statement on the appropriate form with respect to such Registrable

Securities and use reasonable efforts to cause such registration statement to

become effective as promptly as practicable, and upon the request of the

Holders, keep such registration statement effective for at least one hundred

twenty (120) days;

 

(ii)           prepare and file with the SEC such

amendments and supplements to such registration statement and the prospectus

used in connection therewith as may be necessary to keep such registration

statement effective and to comply with the provisions of the Securities Act

with respect to the disposition of all Registrable Securities covered by such

registration statement until the earlier of: (a) such time as all of such

Registrable Securities have been disposed of in accordance with the intended

methods of disposition by the Holders set forth in such registration statement;

or (b) the expiration of one hundred and twenty (120) days after such

registration statement becomes effective;

 

(iii)          furnish to the Holders such number of

conformed copies of such registration statement and of each such amendment and

supplement thereto (in each case including all exhibits), such number of copies

of the prospectus included in such registration statement (including each

preliminary prospectus and any summary prospectus), in conformity with the

requirements of the Securities Act, such documents incorporated by reference in

such registration statement or prospectus, and such other documents, as the

Holder may reasonably request;

 

(iv)          use its best efforts to register and

qualify all securities covered by such registration statement under such other

securities or blue sky laws of such jurisdictions as the Holders shall

reasonably request, and do any and all other acts and things which may be

necessary or advisable to enable the Holders to consummate the disposition in

such jurisdictions of its Registrable Securities covered by such registration

statement, except that the Company shall not for any such purpose be required

to qualify generally to do business as a foreign corporation in any

jurisdiction wherein it is not so qualified, or to subject itself to taxation

in any such jurisdiction, or to consent to general service of process in any

such jurisdiction;

 

(v)           furnish to each Holder a signed

counterpart, addressed to the seller, of (A) an opinion of counsel for the

Company, dated the effective date of such registration statement (and, if such

registration includes an underwritten public offering, dated the date of the

closing under the underwriting agreement), and (B) a "cold comfort"

letter signed by the independent public accountants who have certified the

Company's financial statements included in such registration statement,

covering substantially the same matters with respect to such registration

statement (and the prospectus included therein) and, in the case of such

accountants' letter, with respect to events subsequent to the date of such

financial statements, as are customarily covered in opinions of issuer's

counsel and its accountants' letters delivered to underwriters in underwritten

public offerings of securities and, in the case of the accountants' letter,

such other financial matters, as the Holder may reasonably request;

 

(vi)          in the event of any underwritten

public offering, enter into and perform its obligations under an underwriting

agreement in usual and customary form, with the managing underwriter of such

offering;

 

(vii)         immediately notify the Holders, at any

time when a prospectus relating thereto is required to be delivered under the

Securities 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 any material fact

required to be stated therein or necessary to make the statements therein not

misleading in the light of the circumstances then existing, and at the request

of each Holder prepare and furnish a reasonable number of copies of a

supplement to or an amendment of such prospectus as may be necessary so that,

as thereafter delivered to the purchasers of such Registrable Securities, such

prospectus shall not include an untrue statement of a material fact or omit 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; and

 

(viii)        otherwise use its best efforts to comply

with all applicable rules and regulations of the SEC, and make available to its

securities holders, as soon as reasonably practicable, an earnings statement

covering the period of at least twelve months, but not more than eighteen

months, beginning with the first month of the first fiscal quarter after the

effective date of such registration statement, which earnings statement shall

satisfy the provisions of Section 11(a) of the Securities Act.

 

The Company may require

each Holder, when any registration is being effected with respect to any of the

Holder's Registrable Securities, to furnish the Company such information

regarding the Holder and the distribution of the securities as the Company may

from time to time request in writing for inclusion in the applicable

registration statement as required by law or by the SEC in connection

therewith.

 

Section 3.6.           Preparation; Reasonable Investigation.  In connection with the preparation and

filing of each registration statement registering Registrable Securities under

the Securities Act, the Company will give the Holders and any underwriter, if

any, and their counsel and accountants, a reasonable opportunity to participate

in the preparation of such registration statement and other documents related

thereto, and will give them reasonable access to books and records and

personnel such as is reasonably necessary to facilitate preparation of such

documents and filing.

 

Section 3.7.           Furnish Information.  It shall be a condition precedent to the

obligation of the Company to take any action pursuant to this Article 3

with respect to the Registrable Securities of any Holder that the 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 the Holder's

Registrable Securities.

 

Section 3.8.           Indemnification. In the

event any Registrable Securities are included in a registration statement under

this Article

3:

 

(a)           The Company will indemnify and hold

harmless the Holder, its directors and officers, and each other person, if any,

who controls the Holder within the meaning or the Securities Act, against any

losses, claims, damages, liabilities and expenses (including reasonable legal

fees and expenses and costs of investigation), joint or several, to which the

Holder or any such director or officer or controlling person may become subject

under the Securities Act or otherwise, insofar as such losses, claims, damages,

liabilities or expenses (or actions or proceedings in respect thereof) arise

out of or are based upon (i) any untrue statement or alleged untrue statement

of any material fact contained in any registration statement under which such

securities were registered under the Securities Act, any preliminary

prospectus, final prospectus or summary prospectus included therein, or any

amendment or supplement thereto, or any document incorporated by reference

therein, or (ii) any omission or alleged omission to state therein a material

fact required to be stated therein or necessary to make the statements therein

not misleading, and the Company will reimburse the Holder, and each such

director, officer, and controlling person for any legal or any other expenses

reasonably incurred by them in connection with investigating or defending any

such loss, claim, liability, action or proceeding; provided that the Company

shall not be liable to such an indemnified person in any such case to the extent

(but only to the extent) that any such loss, claim, damage, liability (or

action or proceeding in respect thereof) or expense arises out of or is based

upon an untrue statement or alleged untrue statement or omission or alleged

omission made in such registration statement, any such preliminary prospectus,

final prospectus summary prospectus, amendment or supplement or any documents

incorporated by reference in any of the above in reliance upon and in

conformity with written information furnished by such indemnified person to the

Company and designated by such person to be for use therein.  Such indemnity shall remain in full force

and effect regardless of any investigation made by or on behalf of the Holder

or any such director, officer, or controlling person and shall survive the

transfer of such securities by the Holder.

 

(b)           To the extent permitted by law, the

Holder will indemnify and hold harmless the Company, each of its directors,

each of its officers who has signed the registration statement and each other

person, if any, who controls the Company within the meaning of the Securities

Act, with respect to any statement in or omission from such registration

statement, any preliminary prospectus, final prospectus or summary prospectus

included therein, or any amendment or supplement thereto or any documents

incorporated by reference in any of the above, if such statement or omission

was made solely in reliance upon and in conformity with written information

furnished to the Company through an instrument duly executed by the Holder

specifically stating that it is for inclusion in such registration statement,

preliminary prospectus, final prospectus, summary prospectus, amendment or

supplement. Such indemnity shall remain in full force and effect regardless of

any investigation made by or on behalf of the Company or any such director,

officer or controlling person and shall survive the transfer of such securities

by the Holder; provided, however, that the Holder's liability hereunder

shall not exceed the aggregate net offering proceeds received by the Holder.

 

(c)           If the indemnification provided for

in this Section

3.8 is unavailable or insufficient to hold harmless an indemnified

party in respect of any losses, claims, damages, liabilities, expenses or

action in respect thereof referred to herein, then the indemnifying party shall

contribute to the amount paid or payable by such indemnified party as a result

of such losses, claims, damages, liabilities, expenses or actions in such

proportion as is appropriate to reflect the relative fault of the indemnifying

party on the one hand, and the indemnified party on the other, in connection

with the statement or omissions which resulted in such losses, claims, damages,

liabilities, expenses or actions as well as any other relevant equitable

considerations, including the failure to give the notice required

hereunder.  The relative fault of the

indemnifying party and the indemnified party shall be determined by reference

to, among other things, whether the untrue or alleged untrue statement of a

material fact relates to information supplied by the indemnifying party or the

indemnified party and the parties' relative intent, knowledge, access to

information and opportunity to correct or prevent such statement or omission.  The Company and the Holder agree that it

would not be just and equitable if contributions pursuant to this Section

3.8(c) were determined by pro rata allocation or by any other method

of allocation which did not take account of the equitable considerations

referred to above.  The amount paid or

payable to an indemnified party as a result of the losses, claims, damages,

liabilities or action in respect thereof, referred to above, shall be deemed to

include any legal or other expenses reasonably incurred by such indemnified

party in connection with investigating or defending any such action or

claim.  Notwithstanding the contribution

provisions of this Section 3.8, in no event shall the amount

contributed by the Holder exceed the aggregate net offering proceeds received

by such seller from the sale of such shares. 

No person guilty of a fraudulent misrepresentation (within the meaning

of Section 11(f) of the Securities Act) shall be entitled to contribution from

any person who is not guilty of such fraudulent misrepresentation.

 

(d)           Promptly after receipt by an

indemnified party of notice of the commencement of any action or proceeding

involving a claim referred to in the preceding subdivisions of this Section 3.8,

such indemnified party will, if a claim in respect thereof is to be made

against an indemnifying party, give written notice to the latter of the

commencement of such action; provided, that the failure of any

indemnified party to give notice as provided herein shall not relieve the

indemnifying party of its obligations under the preceding subdivisions of this Section 3.8

except to the extent the failure to give notice is prejudicial to the

indemnifying party. In case any such action is brought against an indemnified

party, the indemnifying party shall be entitled to participate in and to assume

the defense thereof, jointly with any other indemnifying party similarly

notified, to the extent that it may wish, with counsel reasonably satisfactory

to such indemnified party, and after notice from the indemnifying party to such

indemnified party of its election so to assume the defense thereof, the

indemnifying party shall not be liable to such indemnified party for any legal

or other expenses subsequently incurred by the latter in connection with the

defense thereof; provided, however, that if the indemnified party or parties

reasonably determine that there may be a conflict between the positions of the

indemnifying party or parties and of the indemnified party or parties in

conducting the defense of such action or proceeding or that there may be legal

defenses available to such indemnified party or parties different from or in

addition to those available to the indemnifying party or parties, then counsel

for the indemnified party or parties shall be entitled to conduct the defense

to the extent reasonably determined by such counsel to be necessary to protect

the interests of the indemnified party or parties (and the indemnifying party

or parties shall bear the reasonable legal and other expenses incurred in connection

therewith).  No indemnifying party will

consent to entry of any judgment or enter into any settlement which does not

include as an unconditional term thereof the giving by the claimant or

plaintiff to such indemnified party of a full and final release from all

liability in respect to such claim or litigation.

 

Section 3.9.           Rule 144 and 144A.  The Company will file the reports required

to be filed by it under the Securities Act and the Securities Exchange Act of

1934 (the "Exchange Act') (or, if the Company is not required to file such

reports, will, upon the request of a Holder, make publicly available other

information necessary to comply with Rule 144(c) and Rule 144A, as applicable),

and will take such further action as a Holder may reasonably request, all to

the extent required from time to time to enable the Holder to sell shares of

the Company without registration under the Securities Act within the limitation

of the exemptions provided by (a) Rule 144 under the Securities Act, as such

Rule may be amended from time to time, or (b) any similar rule or regulation

hereafter adopted by the SEC.  Upon the

request of a Holder, the Company will deliver to the Holder (i) a verified,

written statement of the President or Chief Financial Officer as to whether it

has complied with such requirements; (ii) if applicable, a copy of the most

recent annual or quarterly report of the Company; and (iii) such other reports

and documents as the Holder may reasonably request to avail itself of Rule 144,

144A or any other rule or regulation of the SEC allowing the Holder to sell its

shares of the Company without registration.

 

Section 3.10.        Termination. Any registration rights granted

pursuant to this Article III shall terminate with respect to any Holder at such

date when the Registrable Securities beneficially owned by such Holder

represents not more than 1% of the Company’s outstanding Common Stock and may

be sold under Rule 144 during any ninety (90) day period.

 

ARTICLE

IV

 

GENERAL

 

Section 4.1.           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 Holders

beneficially owning a majority of the Registrable Securities then outstanding.

 

Section 4.2            Notices. 

Except as otherwise provided in this Agreement, notices and other

communications under this Agreement shall be in writing and shall be delivered,

or mailed by first-class mail, postage prepaid, addressed, if to a Holder, to

the attention of such Holder, addressed in the manner set forth beneath the

Holder’s signature below or at such address, or to the attention of such other

officer, as the Holder shall have furnished to the Company in writing a notice

properly given hereunder or, if to the Company, to the attention of its

Secretary, addressed in the manner set forth beneath the Company's signature

below, or at such other address, or to the attention of such other officer, as

the Company shall have furnished to the Holder in a notice properly given

hereunder.

 

Section 4.3.           Adjustments.  This Agreement shall apply to any shares of

Stock issued to the Holder with respect to, upon exercise or conversion of, or

in exchange for, any Registrable Securities, held by the Holder, by way of a

stock dividend or stock split or in connection with a combination of shares,

recapitalization, merger, consolidation or other reorganization or otherwise,

except for shares of capital stock which have been distributed by the Holder to

the public pursuant to a registration statement or Rule 144 (or any successor

provision) under the Securities Act.

 

Section 4.4.           Miscellaneous.

 

(a)           This Agreement shall be binding upon

and inure to the benefit of and be enforceable by the respective successors and

assigns of the parties hereto, whether so expressed or not.  This Agreement may not be assigned by any

Holder other than to a transferee of all of the Registrable Securities that

such Holder holds or has the right to acquire.

 

(b)           This Agreement embodies the entire

agreement and understanding between the Holder and the Company and supersedes

all prior agreements and understandings relating to the subject matter hereof.

 

 (c)          The

headings in this Agreement are for purposes of reference only and shall not

limit or otherwise affect the meaning hereof.

 

(d)           This Agreement may be executed in two

or more counterparts (including by facsimile), each of which shall be deemed an

original, but all of which together shall constitute one and the same

instrument.

 

(e)           Time is of the essence under this

Agreement.

 

(f)            This Agreement shall be governed by

and construed under the internal laws of the State of Delaware without giving

effect to conflicts of laws.  Whenever

possible, each provision of this Agreement shall be interpreted in such manner

as to be effective and valid under applicable law, but if any provision of this

Agreement shall be prohibited by or invalid under applicable law, such provision

shall be ineffective only to the extent of such prohibition or invalidity,

without invalidating the remainder of such provision or the remaining

provisions of this Agreement.

 

(g)           Each of the Prior Agreements is

hereby terminated and shall be of no further force or effect.

 

                IN WITNESS WHEREOF, the parties hereto have caused

this Agreement to be duly executed and delivered by their respective duly

authorized corporate officers as of the date first written above.

 

	

   

  	

   

  	

  "Company"

  
	

   

  	

   

  	

  NETWORK COMPUTING DEVICES, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:  Rudolph G. Morin

  
	

   

  	

   

  	

  Title:  President and Chief Executive Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Address for notices:

  
	

   

  	

   

  	

  301

  Ravendale Drive

  
	

   

  	

   

  	

  Mountain

  View, California 94043-5207

  

 

 

	

   

  	

   

  	

  "Holders"

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  SCI TECHNOLOGY, INC.

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  By:

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  Title:

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  Address for notice:

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  GUENTHER PFAFF

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  Address for notice:

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  HOFMANN & CO.

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  By: 

  	

   

  	 

	

   

  	

   

  	

  Name: 

  	

  Gottfried Hofmann

  	 

	

   

  	

   

  	

  Title:

  	

  Partner

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

  Address for notice:

  	 

	

   

  	

   

  	

  Wiesenrain

  5

  	 

	

   

  	

   

  	

  6314

  Unteraegeri

  	 

	

   

  	

   

  	

  SwitzerlandPrepared by MERRILL CORPORATION

NETWORK

COMPUTING DEVICES, INC.

 

	

  WARRANT

  	

   

  	

  NO.  13

  

 

 

THE SECURITIES

REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES

ACT OF 1933, AS AMENDED, AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN

MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF

SUCH REGISTRATION OR AN EXEMPTION UNDER SUCH ACT AND THE RULES AND REGULATIONS

THEREUNDER. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF LEGAL

COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY

PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY

APPLICABLE STATE SECURITIES LAWS.

 

	

  Void after 5:00 p.m. August 29, 2006

  	

   

  	

  Warrants To Purchase

  Common Stock
 Dated: August 29, 2001

  

 

WARRANT

CERTIFICATE REPRESENTING

WARRANTS

TO PURCHASE COMMON STOCK OF

NETWORK

COMPUTING DEVICES, INC.

 

FOR VALUE RECEIVED, NETWORK COMPUTING

DEVICES, INC., a corporation organized and existing under the laws of Delaware

(the "Company"), hereby certifies that the holder identified on the

final page (the “Holder”) of this Warrant (the "Warrants", and each

right to purchase a share of Common Stock, a "Warrant") is entitled,

subject to the terms set forth below, at any time or from time to time

hereafter, but not later than August 29, 2006, to purchase from the Company

fully paid and non-assessable shares of Common Stock  in the amount set forth opposite the Holder’s name. These

Warrants and all rights hereunder, to the extent such rights shall not have

been exercised, shall terminate and become null and void at 5:00 p.m., New York

time, on August 29, 2006.

 

DEFINITIONS

 

The terms defined below, whenever used in this

Warrant, shall have the respective meanings hereinafter specified.  Whenever used in this Warrant, any noun or

pronoun shall be deemed to include both the singular and plural and to cover

all genders.

 

"Assignment"

means the form of Assignment appearing at the end of this Warrant.

 

"Common

Stock" means the Company's authorized Common Stock, $.001 par value.

 

"Commission" means the United States

Securities and Exchange Commis­sion, or any other Federal agency then

administering the Securities Act.

 

"Exchange Act" means the Securities Exchange

Act of 1934, as amended, and any similar or successor U.S. federal statute, and

the rules and regulations of the Com­mission (or its successor) thereunder, all

as the same shall be in effect at the time.

 

"Exercise Period" means the period

commencing on the date hereof and terminating at 5:00 p.m., New York time,

on August 29, 2006.

 

"Exercise Price" means the price per share

of Common Stock set forth in Section 1A hereof, as such price may be adjusted

from time to time pursuant to Section 1.

 

"Form of

Subscription" means the Form of Subscription appearing at the end of this

Warrant.

 

"Holder" means the person in whose name this

Warrant is registered on the books of the Company maintained for such purpose.

 

"Securities Act" means the Securities Act of

1933, as amended, or any similar U.S. Federal statute, and the rules and regu­lations

of the Commission promulgated thereunder, all as the same shall be in effect

from time to time.

 

 

SECTION 1.           Exercise of

Warrants: Term; Exercise Price;

Adjustments of Exercise Price

 

1A.          Exercise

of Warrants.  Subject to

the condi­tions of this Section 1, the holder of any Warrant at the holder's

option may exercise such holder's rights under all or any part of the Warrants

to purchase shares of the Company's Common Stock (the "Warrant

Shares") at any time during the Exercise Period at a price (the

"Exercise Price") equal to Fifty Cents ($.50) per share, subject to

adjustment as hereinafter provided.

 

1B.          Adjustment

of Exercise Price for Other Transactions.  If and whenever after the date hereof the

Company shall issue or sell any shares of its Common Stock for a consideration

per share less than the Exercise Price in effect immediately prior to the time

of such issue or sale then, forthwith upon such issue or sale, the Exercise

Price with respect to the exercise of any Warrant subsequent to such event

shall be reduced to the lower of the prices (calculated to the nearest cent)

determined as follows:

 

(a)           by dividing (1) an amount equal to

the sum of (A) the aggregate number of shares of Common Stock outstanding

immediately prior to such issue or sale multiplied by the then existing

Exercise Price, and (B) the consideration, if any, received by the Company upon

such issue or sale, by (2) the aggregate number of shares of Common Stock of

all classes outstanding immediately after such issue or sale; and

 

(b)           by multiplying the Exercise Price in

effect immediately prior to the time of such issue or sale by a fraction, the

numerator of which shall be (1) the sum of (A) the aggregate number of

shares of Common Stock outstand­ing immediately prior to such issue or sale multiplied

by the Market Price immediately prior to such issue or sale plus (B) the

consideration received by the Company upon such issue or sale; and the

denominator of which shall be (2) the product of (A) the aggregate number

of shares of Common Stock of all classes outstanding immediately after such

issue or sale, multiplied by (B) the Market Price immediately prior to such

issue or sale.

 

No adjustment of the Exercise Price, however, shall be made in an

amount less than 1% of the Exercise Price, but any such lesser adjustment shall

be carried forward and shall be made at the time of and together with the next

subsequent adjust­ment, provided, however, upon the exercise of

the Warrants, the Company shall make all necessary adjustments not theretofore

made to the Exercise Price up to and including the date upon which the Warrant

is exercised.

 

1C.          Subdivision

or Combination of Stock. 

In case the Company shall at any time subdivide its outstanding shares

of Common Stock into a greater number of shares, the number of shares issuable

on exercise of this Warrant shall be proportionately increased, and conversely,

in case the outstand­ing shares of Common Stock of the Company shall be

combined into a smaller number of shares, the number of shares issuable on exercise

of this Warrant shall be proportionately reduced.

 

1D.          Changes

in Common Stock.  If any

capital reorganization or reclassification of the capital stock of the Company,

or consolidation or merger of the Company with another corporation, or sale,

transfer or other disposition of all or substantially all of its properties to

another corpora­tion, shall be effected, then, as a condition of such reorga­nization,

reclassification, consolidation, merger, sale, transfer or other disposition,

lawful and adequate provision shall be made whereby each holder of Warrants

shall thereafter have the right to purchase and receive upon the basis and upon

the terms and conditions herein specified and in lieu of the shares of the

Common Stock of the Company immediately thereto­fore issuable upon exercise of

the Warrants, such shares of stock, securities or properties, if any, as may be

issuable or payable with respect to or in exchange for a number of outstanding

shares of such Common Stock equal to the number of shares of such Common Stock

immediately theretofore issuable upon exercise of the Warrants had such

reorganization, reclassification, consolidation, merger, sale, transfer or

other disposition not taken place, and in any such case appropriate provisions

shall be made with respect to the rights and interests of each holder of

Warrants to the end that the provisions hereof (including without limitation

provisions for adjustment of the Exercise Price) shall thereafter be

applicable, as nearly equivalent as may be practicable in relation to any

shares of stock, securities or properties thereafter deliverable upon the

exercise thereof.  The Company shall not

effect any such consolidation, merger, sale, transfer or other disposition,

unless prior to or simultaneously with the consummation thereof the successor

corporation (if other than the Company) resulting from such consolidation or

merger or the corporation purchasing or otherwise acquiring such properties

shall assume, by written instrument executed and mailed or delivered to the

holders of Warrants at the last address of such holders appearing on the books

of the Company, the obligation to deliver to such holders such shares of stock,

securities or properties as, in accordance with the foregoing provisions, such

holders may be entitled to acquire.  The

above provisions of this subpara­graph shall similarly apply to successive

reorganizations, reclassifications, consolidations, mergers, sales, transfers,

or other dispositions.

 

1E.           Notice of

Adjustment.  Upon any

adjustment of the Exercise Price, then and in each such case the Company shall

give written notice thereof to the registered Holder, which notice shall state

the Warrant price resulting from such adjustment and the increase or decrease,

if any, in the number of shares purchasable at such price upon the exercise of

this Warrant, setting forth in reasonable detail the method of calculation and

the facts upon which such calculation is based.  Upon written request of the Holder, the Company shall promptly

obtain the opinion of a firm of independent certified public accountants (which

may be the regular auditors of the Company) of recognized national standing

selected by the Company's Board of Directors, which opinion shall state the

Exercise Price resulting from such adjustment and the increase or decrease, if

any, in the number of shares of Common Stock issuable upon Exercise of the

Warrant or Warrants held by each holder of Warrants, setting forth in

reasonable detail the method of calculation and the facts upon which such

calculation is based.  The good faith

determination of the Board of Directors based upon such accountants opinion

shall be final and binding with respect to any adjustment required hereunder.

 

1F.           Certain

Events.  If any event

occurs as to which in the opinion of the Board of Directors of the Company the

other provisions of Section 1 hereof are not strictly applicable or if strictly

applicable would not fairly protect the conversion rights of the holders of the

Warrants in accordance with the essential intent and principles of such

provisions, then such Board of Directors shall appoint a firm of independent

certified public accountants (which may be the regular auditors of the Company)

of recognized national standing, which shall give their opinion upon the

adjustment, if any, on a basis consistent with such essential intent and

principles, necessary to preserve, without dilution, the rights of the holders

of the Warrants.  Upon receipt of such

opinion by the Board of Directors, the Company shall forthwith make the

adjustments described therein; provided, however, that no such

adjustment pursuant to this Section 1F shall have the effect of increasing the

Exercise Price as otherwise determined pursuant to Section 1 hereof except in

the event of a combination of shares of the type contemplated in Section ID and

then in no event to an amount larger than the exercise price as adjusted

pursuant to Section ID.

 

1G.          Prohibition

of Certain Actions.  The

Company will not (i) authorize or issue, or agree to authorize or issue, any

shares of its capital stock of any class preferred as to dividends or as to the

distribution of assets upon voluntary or involuntary liquidation, dissolution

or winding-­up of the Company otherwise than for full and fair consideration in

hand paid to the  Company concurrent

with any such issuance; or (ii) take any action which would result in any

adjustment of the Exercise Price if the total number of shares of Common Stock

issuable after such action upon exercise of all of the Warrants would exceed

the total number of shares of Common Stock then authorized by the Company's

Certificate of Incorporation.

 

1H.          Stock to

be Reserved.  The Company

will at all times reserve and keep available out of its authorized Common

Stock, solely for the purpose of issue upon the exercise of Warrants as herein

provided, such number of shares of Common Stock as shall then be issuable upon

the exercise of all outstanding Warrants, and the Company will maintain at all

times all other rights and privileges sufficient to enable it to fulfill all

its obligations hereunder.  

 

1I.            Registration

and Listing of Common Stock. 

If any shares of Common Stock required to be reserved for purposes of

exercise of Warrants hereunder require registration with or approval of any

governmental authority under any Federal or state law (other than the

Securities Act) before such shares may be issued upon exercise, the Company

will, at its expense and as expeditiously as possible, use its best efforts to

cause such shares to be duly registered or ap­proved, as the case may be.  Shares of Common Stock issuable upon

exercise of the Warrants shall be registered by the Company under the

Securities Act or similar statute then in effect.  If and so long as the Common Stock is listed on any national

securities exchange or quoted on the Nasdaq Stock Market, the Company will, at

its expense, obtain promptly and maintain the approval for listing or quotation

thereon upon official notice of issuance, of shares of Common Stock issuable

upon exercise of the then outstanding Warrants and maintain the listing or

quotation of such shares after their issuance; and the Company will also cause

the listing on such national securities exchange or quotation on Nasdaq, will

register under the Exchange Act and will maintain such listing or quotation of,

any other securities that at any time are issuable upon exercise of the

Warrants, if and at the time that any securi­ties of the same class shall be

listed on such national securities exchange 

or quoted on Nasdaq by the Company or shall require registra­tion under

the Exchange Act.  The Shares are

subject to a separate Registration Rights Agreement.

 

1J.           No Charge

for Issuance.  The

issuance of certificates for shares of Common Stock upon exercise of Warrants

shall be made without charge to the holders of the Warrants, other then payment

of the exercise price.

 

1K.          Closing

of Books.  The Company

will at no time close its transfer books against the transfer of any Warrant or

of any shares of Common Stock issued or issuable upon the exercise of any

Warrant in any manner which interferes with the timely exercise of such

Warrant.

 

1L.           No Rights

or Liabilities as Shareholders. 

No Warrant shall entitle any holder thereof to any of the rights of a

shareholder of the Company.  No

provision of this Warrant, in the absence of the actual exercise of such

Warrant or any part thereof by the holder thereof into Common Stock issuable

upon such exercise, shall give rise to any liability on the part of such holder

as a shareholder of the Company, whether such liability shall be asserted by

the Company or by creditors of the Company.

 

1M.         Fractional

Shares.  The Company

shall not issue fractional shares of Common Stock or scrip representing

fractional shares of Common Stock upon any exercise of this Warrant.  As to any fractional share of Common Stock

which the Holder would oth­er­wise be entitled to purchase from the Company

upon such exercise, the Company shall purchase from the Holder such fractional

share at a price equal to an amount calculated by multiplying such fractional

share (calculated to the nearest 1/100th of a share) by its Market Price on the

date the Form of Subscription is received by the Company.  Payment of such amount shall be made in cash

or by check payable to the order of the Holder at the time of delivery of any

certificate or certifi­cates arising upon such exercise.

 

SECTION 2.           METHOD OF

EXERCISE OF WARRANTS

 

The Warrants may be

exercised by the surrender of this Certificate, with the Form of Subscription

attached hereto duly executed by the holder, to the Company at its principal

office, accompanied by payment of the Exercise Price for the number of shares

of Common Stock specified.  The Warrants

may be exercised for less than the full number of shares of Common Stock called

for hereby by surrender of this Certificate in the manner and at the place

provided above, accompanied by payment for the number of shares of Common Stock

being purchased.  If the Warrants should

be exercised in part only, the Company shall, upon surrender of this Warrant

Certificate for cancellation, execute and deliver a new Warrant Certificate

evidencing the right of the holder to purchase the balance of the shares

purchasable hereunder.  Upon receipt by

the Company of this Warrant Certificate at the office of the Company, in proper

form for exercise, accompa­nied by the full Exercise Price in cash or certified

or bank cashier's check, the holder shall be deemed to be the holder of record

of the shares of Common Stock issuable upon such exercise, notwithstanding that

the stock transfer books of the Company shall then be closed or that

certificates representing such Common Stock shall not then be actually

delivered to the holder.

 

As soon as practicable after the exercise of these

Warrants in whole or in part and, in any event, within ten (10) days

thereafter, the Company at its expense will cause to be issued in the name of

and delivered to the holder a certifi­cate or certificates for the number of

fully paid and nonassessable shares of Common Stock (and any new Warrants) to

which the holder shall be entitled upon such exercise.  Each certificate for shares of Common Stock

so delivered shall be in such denominations as may be requested by the holder

and shall be registered in the name of the holder or such other name as the

holder may designate.

 

SECTION 3.           PAYMENT

OF TAXES

 

The issuance of certificates for shares of Common

Stock upon exercise of the Warrants shall be made without charge to the holders

of the Warrants exercised for any issuance tax in respect thereto; provided,

however, that the Company shall not be required to pay any tax which may

be payable in respect of any transfer of any certificate or Warrant.

 

SECTION 4.           MUTILATED

OR MISSING WARRANT CERTIFICATES

 

Upon receipt by the Company of evidence reasonably

satisfactory to it of the loss, theft, destruction or mutila­tion of this

Warrant Certificate, and (in the case of loss, theft or destruction) of

reasonably satisfactory indemnifica­tion and upon surrender and cancellation of

this Warrant Certificate, if mutilated, the Company will execute and deliver a

new Warrant Certificate of like tenor and date.

 

SECTION 5.           RESTRICTIONS

ON TRANSFER

 

5A.          In General. This Warrant and the Common

Stock issued upon the exercise hereof shall not be transferable except upon the

conditions hereinafter specified, which conditions are intended to insure

compliance with the provisions of the Securities Act and any applicable state

securities laws in respect of the transfer of this Warrant or any such Common

Stock.

 

5B.          Restrictive

Legends. This Warrant (including each Warrant issued upon the

transfer of any Warrant) shall bear on the face thereof a legend substantially

in the form of the notice endorsed on the first page of this Warrant.

 

Each certificate for shares of Common Stock initially

issued upon the exercise of this Warrant and each certificate for shares of

Common Stock issued to a subsequent transferee of such certificate shall, bear

on the face thereof a legend reading substantially as follows:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE

NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND NEITHER

THE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR

OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION UNDER

SUCH ACT AND THE RULES AND REGULATIONS THEREUNDER. THE ISSUER OF THESE

SECURITIES MAY REQUIRE AN OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE

SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE

IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES

LAWS.

 

In the event that

a registration statement covering the shares of Common Stock issued upon

exercise of this Warrant shall become effective under the Securities Act or in

the event that the Company shall receive an opinion of its counsel that, in the

opinion of such counsel, such legend is not, or is no longer, necessary or

required (including, without limitation, because of the availability of the

exemption afforded by Rule 144 of the Regulations of the Securities and

Exchange Commission), the Company shall, or shall instruct its transfer agents

and registrars to, remove such legend from the certificates evidencing such

shares of Common Stock or issue new certificates without such legend in lieu

thereof.

 

5C.          Notice of

Proposed Transfer; Registration Not Required.  The Holder of this Warrant or the holder of

any shares of Common Stock issuable upon the exercise hereof  (the “Warrant Shares”) by acceptance hereof

or thereof, agrees to give written notice to the Company, prior to any transfer

of this Warrant, the Warrant Shares or any portion hereof or thereof, of its

intention to make such transfer which notice shall include a brief description

of such proposed transfer.

 

If in the opinion of

counsel to the Company or counsel to the transferor reasonably acceptable to

the Company the proposed transfer may be effected without registration or

qualification under any Federal or state law whereupon the Holder shall be

entitled to transfer this Warrant or Warrant shares in accordance with the

terms of the notice delivered to the Company and the opinion of counsel.  The Company shall not be required to

implement any unregistered transfer of the Warrant or Warrant Shares without

such opinion of counsel.

 

SECTION 6            MISCELLANEOUS

 

6A.          Nonwaiver.  No course of dealing or any delay or failure

to exercise any right hereunder on the part of the Holder shall operate as a

waiver of such right or otherwise prejudice the Holder's rights, powers or

remedies.

 

6B.          Notice

Generally.  Any notice,

demand or delivery to be made pursuant to the provisions of this Warrant shall

be sufficiently given or made if sent by first class mail, postage prepaid,

addressed to (a) the Holder at its last known address appear­ing on the books

of the Company maintained for such pur­pose or (b) the Company at its principal

office referred to in the Purchase Agreement. 

The Holder and the Company may each designate a different address by

notice to the other pursuant to this Section 6B.

 

6C.          Successors

and Assigns.  This

Warrant and the rights evidenced hereby shall inure to the benefit of and be

binding upon the successors of the Company and the Holder.  The provisions of this Warrant are intended

to be for the benefit of all Holders from time to time of this Warrant, and

shall be en­force­able by any such Holder.

 

6D.          Amendment.  This Warrant may not be modified or amended

except by written agreement of the parties.

 

6E.           Headings.  The headings of the Sections of this Warrant

are for the convenience of reference only and shall not, for any purpose, be

deemed a part of this Warrant.

 

6F.           Governing

Law.  Except to the

extent the corporation statute of Delaware applies, this Agreement shall be

governed by and construed and enforced under the laws of California without

reference to the principles of the conflicts of laws thereof.

 

IN WITNESS WHEREOF, the Company has caused

this Warrant Certificate to be duly executed, as of the day and year first

above written.

 

	

  WARRANT

  NO. 13

  	

  WARRANTS  TO PURCHASE

  
	

   

  	

  1,200,000 WARRANT SHARES

  
	

  ISSUED TO: HOFMANN & CO.

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  NETWORK COMPUTING DEVICES, INC.

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  
	

  Name: Rudolph G.

  Morin

  	

   

  
	

  Title:  

  President and Chief Executive Officer

  	

   

  
	

   

  	

   

  
	

  Dated:  Mountain View, California

  	

   

  
	

  August 29, 2001

  	

   

  
					

 

FORM OF SUBSCRIPTION

 

DATE:  _______________, 200__

 

WARRANT #

____________

 

TO: NETWORK

COMPUTING DEVICES, INC.

 

The Undersigned,

the holder of the within Warrants, hereby, irrevocably elects to exercise all

or part of the purchase right represented by such Warrants for, and to purchase

thereunder, shares of Common Stock of NETWORK COMPUTING DEVICES, INC. (the

"Company") and herewith makes payment of $__________ to the Company,

evidenced by delivery of the Holder’s certified or bank check and requests that

the certificate representing such shares be issued in the name of, and be

delivered to Holder, at the address indicated below.

 

The Undersigned

represents that he is acquiring the Common Stock  for his own account, for investment and without any view to

resale or distribution of the Common Stock or any portion thereof. The

Undersigned acknowledges that the sale of the Common Stock hereunder has not

been registered or qualified under the Securities Act, or under any state

securities laws, and that any retransfer of the Common Stock by the Undersigned

will accordingly be restricted.  The

certificates representing the Common Stock will bear a legend to the effect

that the Common Stock may not be transferred except in a transaction registered

or qualified under applicable securities laws or in a transaction exempt from

such registration or qualification, as evidenced by an opinion of counsel or

other evidence satisfactory to the Company and its counsel.

 

The Undersigned

acknowledges that the Common Stock must be held indefinitely unless

subsequently registered under the Securities Act or the Company receives an

opinion of counsel satisfactory to the Company that such registration is not

required. The Undersigned is aware of the provisions of Rule 144 promulgated

under the Securities Act which permit limited resale of stock purchased in a

private placement subject to the satisfaction of certain conditions, including,

among other things, the existence of a public market for the stock.  In the absence of a prior registration of

the Common Shares underlying the securities being sold, the Undersigned agrees

to be bound by any applicable restrictions, and acknowledges that the

Undersigned may be required to hold the Shares for an indefinite period of

time, subject to prior registration of the Common Stock into which the Shares

are convertible.

 

The Undersigned

further acknowledges that, in the event all of the requirements of Rule 144 are

not met, compliance with another registration exemption will be required; and

that, although Rule 144 is not exclusive, the staff of the SEC has expressed

its opinion that persons proposing to sell private placement securities other

than in a registered offering and other than pursuant to Rule 144, will have a

substantial burden of proof in establishing that an exemption from registration

is available for such offers or sales, that such persons and the brokers who

participate in the transactions do so at their own risk.  There is no assurance that any exemption

from registration under the Securities Act will be available or, if available,

will allow such person to dispose of, or otherwise transfer, all or any portion

of the Common Stock.

 

The Undersigned

acknowledges that he can bear the economic risk and complete loss of his investment

in the Common Stock and has such knowledge and experience in financial or

business matters that he is capable of evaluating the merits and risks of the

investment contemplated hereby.

 

 

	

   

  	

   

  	

   

  
	

   

  	

  (Name of Holder)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  (Authorized Signatory)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  (Address)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  (Telephone #)

  	

   

  

 

ASSIGNMENT FORM

 

(To be executed

only upon the assignment of the within Warrant)

 

To:          NETWORK

COMPUTING DEVICES, INC.

 

FOR VALUE RECEIVED

the undersigned registered Holder of the within Warrant

 

hereby sells,

assigns and transfers unto

 

whose address is

 

all of the rights

of the under­signed under the within Warrant, with respect to a certain Warrant

to purchase shares of Common Stock of NETWORK COMPUTING DEVICES,  INC. and if such shares of Common Stock shall

not include all the shares of Common Stock issuable as provided in the within

Warrant, then a new Warrant of like tenor for the number of shares of Common

Stock of NETWORK COMPUTING DEVICES, INC., not being transferred hereunder shall

be issued in the name of and delivered to the undersigned, and does hereby irre­vocably

constitute and appoint

 

as attorney in

fact to register such transfer on the books of The Company maintained for the

purpose, with full power of substitution in the premises.

 

	

  Dated

  	

  ______________,_________

  	

   

  	

   

  
	

   

  	

   

  
	

  Signature Guaranteed:

  	

  By:

  
	

   

  	

  (Signature of

  Registered Holder)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  
	

      [Title:                                                                 ]

  	

   

  

 

NOTICE:  The signature to this Assignment must

correspond with the name as written upon the face of the within Warrant in

every particular, without alteration or enlargement or any change whatever.

 

The signature to

this Assignment must be guaranteed by a commercial bank or trust company of the

United States or a member firm of the New York Stock Exchange.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]