Document:

EX-4.3 Form of Preferred Stock Purchase Warrant

 

Exhibit 4.3

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER SUCH LAWS.

AUTHENTEC, INC.

Preferred Stock Purchase Warrant

     AuthenTec, Inc., a Delaware corporation (the “Company”), hereby certifies that, for value
received, ______________________ or its assigns or transferees (the “Holder”), is entitled, subject to
the terms set forth below, to purchase from the Company on or after the earliest of the following
to occur: (i) the closing of the Next Equity Financing, (ii) immediately prior to a Change in
Control (as defined in the Purchase Agreement, as defined below)) or (iii) June 30, 2001, and
before 5:00 P.M., New York time, on September 25, 2010, such number of fully paid and nonassessable
shares of Offered Securities as set forth in Section 1(a) (the “Warrant Shares”), at the Exercise
Price. The number and character of the Warrant Shares and the Exercise Price are subject to
adjustment as provided herein.

     This Warrant is issued pursuant to, and is subject to the terms and conditions of, the
Purchase Agreement (as defined below). All capitalized terms used herein and not otherwise defined
herein shall have the meanings attributed to such terms in the Note. The following terms, unless
the context otherwise requires, have the following respective meanings for purposes of this
Warrant:

	 	(a)	 	“Company” shall include AuthenTec, Inc. and any corporation
that shall succeed or assume the obligations of the Company hereunder.
	 
	 	(b)	 	“Common Stock” includes (i) the Company’s Common Stock, $0.01
par value per share, and (ii) any other securities into which or for which any
of the securities described in (i) may be converted or exchanged pursuant to a
plan of recapitalization, reorganization, merger, sale of assets or other
similar corporate rearrangement.

 

 

	 	(c)	 	“Certificate of Incorporation” shall mean the Company’s
Restated Certificate of Incorporation, as amended.
	 
	 	(d)	 	“Convertible Stock” means the Convertible Stock issued and sold
by the Company pursuant to the Convertible Stock and Warrant Purchase
Agreement.
	 
	 	(e)	 	“Convertible Stock and Warrant Purchase Agreement” means the
Convertible Stock and Warrant Purchase Agreement, between the Company and the
other party thereto, of even date herewith.
	 
	 	(f)	 	“Exercise Price” means the purchase price per share paid for
the Offered Securities by investors in the Next Equity Financing (as defined
below); provided, however, that (A) if the closing of the Next
Equity Financing does not occur on or before June 30, 2001 or (B) upon a Change
in Control (as defined in the Purchase Agreement) prior to the closing of the
Next Equity Financing, “Exercise Price” shall mean the lesser of (i) the
Conversion Price (as defined in the Certificate of Incorporation) for the
Company’s Series A Convertible Preferred Stock in effect at the time of
exercise of this Warrant and (ii) One Dollar ($1.00) (as appropriately adjusted
for stock splits, stock dividends and similar events affecting the capital
stock of the Company after the date hereof).
	 
	 	(g)	 	“Notes” means the Convertible Promissory Notes issued by the
Company pursuant to the Convertible Promissory Note and Warrant Purchase
Agreement, between the Company and the other parties thereto, of even date
herewith (the “Purchase Agreement”).
	 
	 	(h)	 	“Note Amount” means, with respect to each Note, that amount
equal to 10% of the original principal amount of such Note issued to such
Holder pursuant to the Purchase Agreement.
	 
	 	(i)	 	“Offered Securities” means the preferred stock of the Company
issued and sold at the close of the Company’s next equity financing in a single
transaction or series of related transactions yielding gross proceeds to the
Company of at least $15,000,000 in the aggregate, including conversion of all
outstanding Notes and Convertible Stock (the “Next Equity Financing”);
provided, however, that if the closing of the Next Equity
Financing does not occur on or before June 30, 2001, “Offered Securities” shall
mean the Company’s Series A Convertible Preferred Stock; provided
further, that upon a Change in Control (as defined in the Purchase
Agreement) prior to the Next Equity Financing, “Offered Securities” shall mean
the Company’s Series A Convertible Preferred Stock; and the term “Offered
Securities” includes any other securities into which or for which
any of the securities described above may be converted or exchanged pursuant
to a plan of recapitalization, reorganization, merger, sale of assets or
other similar corporate rearrangement.

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     1. Exercise of Warrant; Number of Shares.

          (a) Number of Shares. The Holder may exercise this Warrant at any time and from time
to time after the date hereof in accordance with the terms and conditions set forth herein. The
Holder is entitled, upon exercise of this Warrant, to purchase from the Company the number of
Warrant Shares equal to the Note Amount divided by the Exercise Price.

          (b) Full Exercise. This Warrant may be exercised by the Holder by surrender of this
Warrant, with the form of subscription at the end hereof duly executed by the Holder to the Company
at its principal office, accompanied by payment, in cash or by certified or official bank check
payable to the order of the Company, in the amount obtained by multiplying the number of Warrant
Shares for which this Warrant is then exercisable by the applicable Exercise Price.

          (c) Partial Exercise. This Warrant may be exercised in part by surrender of the
Warrant in the manner and at the place provided in Section 1(b) except that the amount payable by
the Holder on such partial exercise shall be the amount obtained by multiplying (i) the number of
Warrant Shares designated by the Holder in the subscription at the end hereof by (ii) the
applicable Exercise Price. On any such partial exercise the Company at its expense will forthwith
issue and deliver to or upon the order of the Holder a new warrant or warrants of like tenor, in
the name of the Holder or as the Holder (upon payment by the Holder of any applicable transfer
taxes) may request, calling in the aggregate on the face or faces thereof for the number of shares
of Warrant Shares for which such warrant or warrants may still be exercised.

          (d) Exercise by Exchange of Warrant. In addition to and without limiting the rights
of the Holder under the terms hereof, the Holder may, at its option, elect to pay some or all of
the Exercise Price payable upon an exercise of this Warrant by cancelling a portion of this Warrant
exercisable for such number of Warrant Shares as is determined by dividing (i) the total Exercise
Price payable in respect of the number of Warrant Shares being purchased upon such exercise by (ii)
the excess of the Fair Market Value of one Warrant Share (as defined below) as of the Exercise Date
(as defined in Section 1(e) below) over the Exercise Price per share. If the Holder wishes to
exercise this Warrant pursuant to this method of payment with respect to the maximum number of
Warrant Shares purchasable pursuant to this method, then the number of Warrant Shares so
purchasable shall be equal to the total number of Warrant Shares, minus the product obtained by
multiplying (x) the total number of Warrant Shares by (y) a fraction, the numerator of which shall
be the Exercise Price per share and the denominator of which shall be the Fair Market Value of one
Warrant Share as of the Exercise Date. The Fair Market Value of one Warrant Share shall be
determined as follows:

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               (i) if the Warrant Shares are listed on a national securities exchange, the Nasdaq National
Market or another nationally recognized trading system as of the Exercise
Date, the Fair Market Value of one Warrant Share shall be deemed to be the average of the high and
low reported sale prices per Warrant Share thereon on the trading day immediately preceding the
Exercise Date (provided that if no such price is reported on such day, the Fair Market Value of one
Warrant Share shall be determined pursuant to clause (iii)).

               (ii) if the Warrant Shares are exercisable for securities that are listed on a national
securities exchange, the Nasdaq National Market or another nationally recognized trading system as
of the Exercise Date, the Fair Market Value of one Warrant Share shall be deemed to be the product
of (A) the average of the high and low reported sale prices per Warrant Share thereon on the
trading day immediately preceding the Exercise Date and (B) the number of shares of such security
into which one Warrant Share is convertible at the date of calculation (provided that if no such
price is reported on such day, the Fair Market Value of one Warrant Share shall be determined
pursuant to clause (iii)).

               (iii) If neither the Warrant Shares nor the securities for which the Warrant Shares are
exercisable are listed on a national securities exchange, the Nasdaq National Market or another
nationally recognized trading system as of the Exercise Date, the Fair Market Value of one Warrant
Share shall be deemed to be the highest price per share which the Company could obtain on the date
of calculation from a willing buyer for Warrant Shares issued by the Company, as determined in good
faith by the Board of Directors.

Upon any such exercise, the number of Warrant Shares purchasable upon exercise of the Warrant shall
be reduced by such designated number of Warrant Shares and, if a balance of purchasable Warrant
Shares remains after such exercise, the Company shall execute and deliver to the Holder a new
Warrant for such balance of Warrant Shares. No payment of any cash or other consideration shall be
required or permitted. No fractional shares arising out of the above formula for determining the
number of shares issuable in such exchange shall be issued, and the Company shall in lieu thereof
make payment to the Holder of cash in the amount of such fraction multiplied by the then current
market value of such securities on the date of the exchange.

          (e) Exercise Date. Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the day on which this Warrant shall have
been surrendered to the Company, or at such later date as may be specified in such request (the
“Exercise Date”). At such time, the person or persons in whose name or names any certificates for
Warrant Shares shall be issuable upon such exercise shall be deemed to have become the holder or
holders of record of the Warrant Shares represented by such certificates.

          (f) Company Acknowledgment. The Company will, at the time of the exercise of the
Warrant and upon the request of the Holder, acknowledge in writing its continuing obligation to
afford to the Holder any rights to which the Holder shall continue to be entitled after such
exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any
such request, such failure shall not affect the continuing obligation of the Company to afford to
the Holder any such rights.

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     2. Delivery of Stock Certificates on Exercise. As soon as practicable after the
exercise of this Warrant in full or in part, and in any event within ten days thereafter, the
Company, at its expense (including the payment by it of any applicable issue taxes), will cause to
be issued in the name of and delivered to the Holder, or as the Holder (upon payment by the Holder
of any applicable transfer taxes) may direct, a certificate or certificates for the number of fully
paid and non-assessable Warrant Shares to which the Holder shall be entitled on such exercise,
plus, in lieu of any fractional share to which the Holder would otherwise be entitled, cash equal
to such fraction multiplied by the then current market value of one full share, together with any
other stock or other securities and property (including cash, where applicable) to which the Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

     3. Adjustment for Dividends in Other Stock, Property, Reclassification. In case at
any time or from time to time, the holders of Common Stock or Warrant Shares shall have received,
or (on or after the record date fixed for the determination of shareholders eligible to receive)
shall have become entitled to receive, without payment therefor,

	 	(a)	 	other or additional stock or other securities or property
(including cash, other than cash out of earnings or earned surplus, determined
in accordance with generally accepted accounting principles) by way of
dividend, or
	 
	 	(b)	 	other or additional stock or other securities or property
(including cash, other than cash out of earnings or earned surplus, determined
in accordance with generally accepted accounting principles) by way of
spin-off, split-up, reclassification, recapitalization, combination of shares
or similar corporate rearrangement or other distribution,

other than additional shares of Common Stock or Warrant Shares issued as a stock dividend or in a
stock-split (adjustments in respect of which are provided for in Section 5), then and in each such
case the Holder, on the exercise hereof as provided in Section 1, shall be entitled to receive the
amount of stock and other securities and property (including cash) that Holder would hold on the
date of such exercise if on the date hereof had he been the holder of record of the number of
Warrant Shares called for on the face of this Warrant and had thereafter, during the period from
the date hereof to and including the date of such exercise, retained such shares and all such other
or additional stock and other securities and property (including cash) receivable by him as
aforesaid during such period, giving effect to all adjustments called for during such period by
Sections 4 and 5.

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     4. Adjustment for Reorganization, Consolidation, Merger.

          (a) General. In case at any time or from time to time, the Company shall (i) effect a
reorganization or recapitalization, (ii) consolidate with or merge into any other person, or (iii)
transfer all or substantially all of its properties or assets to any other person under any plan or
arrangement contemplating the dissolution of the Company, then, in each such case, except as
otherwise provided in Section 4(c) hereof, the holder of this Warrant, on the exercise hereof,
as provided in Section 1, at any time after the consummation of such reorganization,
recapitalization, consolidation or merger or the effective date of such dissolution, as the case
may be, shall receive, in lieu of the Warrant Shares issuable on such exercise prior to such
consummation or such effective date, the stock and other securities and property (including cash)
to which such holder would have been entitled upon such consummation or in connection with such
dissolution, as the case may be, if such holder had so exercised this Warrant immediately prior
thereto, all subject to further adjustment thereafter as provided in Sections 3 and 5.

          (b) Dissolution. Except as otherwise provided in Section 4(c) hereof, in the event of
any dissolution of the Company following the transfer of all or substantially all of its properties
or assets, the Company, prior to such dissolution, shall at its expense deliver or cause to be
delivered the stock and other securities and property (including cash, where applicable) receivable
by the holders of this Warrant after the effective date of such dissolution pursuant to this
Section 4 to a bank or trust company, as trustee for the holder or holders of this Warrant.

          (c) Continuation of Terms. Except as otherwise provided herein, upon any
reorganization, consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 4, this Warrant shall continue in full force and effect and the terms
hereof shall be applicable to the shares of stock and other securities and property receivable on
the exercise of this Warrant after the consummation of such reorganization, consolidation or merger
or the effective date of dissolution following any such transfer, as the case may be, and shall be
binding upon the issuer of any such stock or other securities, including, in the case of any such
transfer, the person acquiring all or substantially all of the properties or assets of the Company,
whether or not such person shall have expressly assumed the terms of this Warrant.

     5. Adjustment for Extraordinary Events. In the event that the Company shall (a)
subdivide its outstanding shares of Common Stock or Offered Securities, or (b) combine its
outstanding shares of Common Stock or Offered Securities into a smaller number of shares of Common
Stock or Offered Securities, as applicable, then, in each such event, the Exercise Price shall,
simultaneously with the happening of such event, be adjusted by multiplying the then Exercise Price
by a fraction, the numerator of which shall be the number of shares of Common Stock or Offered
Securities, as applicable, outstanding immediately prior to such event and the denominator of which
shall be the number of shares of Common Stock or Offered Securities outstanding immediately after
such event, and the product so obtained shall thereafter be the Exercise Price then in effect.

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     In the event that the Company shall issue additional shares of Common Stock or Offered
Securities as a dividend or other distribution on outstanding Common Stock or Offered Securities,
or fix a record date for the determination of holders of Common Stock or Offered Securities
entitled to receive such dividend or distribution, then, in each such event, the Exercise Price
shall, simultaneously with the happening of such event, or in the event such a record date shall
have been fixed, as of such record date, be adjusted by multiplying the then Exercise Price by a
fraction, the numerator of which shall be the number of shares of Common Stock or Offered
Securities, as applicable, outstanding immediately prior to such event and the denominator of which
shall be the number of shares of Common Stock or Offered Securities outstanding immediately after
such event, and the product so obtained shall thereafter be the Exercise Price then in effect.

     The Exercise Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described in this Section 5. The holder of this Warrant shall
thereafter, on the exercise hereof as provided in Section 1, be entitled to receive that number of
Warrant Shares determined by multiplying the number of shares of Offered Securities or Common
Stock, as applicable, which would otherwise (but for the provisions of this Section 5) be issuable
on such exercise by a fraction, the numerator of which is the Exercise Price that would otherwise
(but for the provisions of this Section 5) be in effect, and the denominator of which is the
Exercise Price in effect on the date of such exercise.

     6. No Dilution or Impairment. The Company will not, by amendment of its charter or
through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of the Holder against dilution or other impairment. Without limiting the
generality of the foregoing, the Company (a) will not increase the par value of any shares of stock
receivable on the exercise of this Warrant above the amount payable therefor on such exercise, (b)
will take all such action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and non-assessable shares of stock on the exercise of all Warrants
from time to time outstanding, (c) will not issue any capital stock of any class which is preferred
as to dividends or as to the distribution of assets upon voluntary or involuntary dissolution,
liquidation or winding up, unless the rights of the holders thereof shall be limited to a fixed sum
or percentage of par value in respect of participation in dividends and in any such distribution of
assets, and (d) will not transfer all or substantially all of its properties and assets to any
other person (corporate or otherwise), or consolidate with or merge into any other person or permit
any such person to consolidate with or merge into the Company (if the Company is not the surviving
person), unless such other person shall expressly assume in writing and will be bound by all the
terms of this Warrant.

     7. Certificate as to Adjustments. In each case of any adjustment or readjustment in
the Warrant Shares issuable on the exercise of this Warrant, the Company at its expense will
promptly cause its Treasurer or Chief Financial Officer to compute such adjustment or readjustment
in accordance with the terms of this Warrant and prepare a certificate setting forth such
adjustment or

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readjustment (including the kind and amount of securities, cash or other property for
which this Warrant shall be exercisable and the Exercise Price) and showing in detail the facts
upon which such adjustment or readjustment is based, including a statement of (a) the number of
shares of Offered Securities or Common Stock, as the case may be, outstanding or deemed to be
outstanding, and (b) the Exercise Price and the number of shares of Warrant Shares to be received
upon exercise of this Warrant, in effect immediately prior to such issue or sale and
as adjusted and readjusted as provided in this Warrant. The Company will, as soon as practical,
mail a copy of each such certificate to any holder of this Warrant, and will, on the written
request at any time of any holder of this Warrant, furnish to the Holder a like certificate setting
forth the number of Warrant Shares that the Holder may purchase pursuant to this Warrant, the
Exercise Price then in effect, and the manner in which the foregoing was calculated.

8. Notices of Record Date, Etc. In the event of

	 	(a)	 	any taking by the Company of a record of the holders of any
class of securities for the purpose of determining the holders thereof who are
entitled to receive any dividend or other distribution, or any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class
or any other securities or property, or to receive any other right, or
	 
	 	(b)	 	any capital reorganization of the Company, any reclassification
or recapitalization of the capital stock of the Company or any transfer of all
or substantially all the assets of the Company to or consolidation or merger of
the Company with or into any other person, or any voluntary or involuntary
dissolution, liquidation or winding-up of the Company,

then and in each such event the Company will mail or cause to be mailed to any holder of this
Warrant a notice specifying (i) the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, and stating the amount and character of such dividend,
distribution or right, (ii) the date on which any such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding-up is to
take place, and the time, if any is to be fixed, as of which the holders of record of Offered
Securities or Common Stock shall be entitled to exchange their shares of Offered Securities or
Common Stock for securities or other property deliverable on such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding-up, and
(iii) the amount and character of any stock or other securities, or rights or options with respect
thereto, proposed to be issued or granted, the date of such proposed issue or grant and the persons
or class of persons to whom such proposed issue or grant is to be offered or made. Such notice
shall be mailed at least 20 days prior to the date specified in such notice on which any such
action is to be taken. In addition, the Company shall give any holder of this Warrant a copy of
any notice given to holders of Common Stock or Offered Securities at the same time that such notice
is given to the holders of Common Stock or Offered Securities.

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     9. Amendment. This Warrant is one of a series of Warrants issued by the Company
pursuant to the Purchase Agreement and the Convertible Stock and Warrant Purchase Agreement, all
dated the date hereof and of like tenor, except as to the number of Warrant Shares subject thereto
(collectively, the “Company Warrants”). Any term of this Warrant may be amended or waived upon the
written consent of the Company and the holders of Company Warrants representing at least fifty-five
percent (55%) of Warrant Shares then subject to outstanding Company Warrants; provided that any
such amendment or waiver must apply to all
Company Warrants then outstanding; and provided further that the number of Warrant Shares subject
to this Warrant and the Exercise Price of this Warrant may not be amended, and the right to
exercise this Warrant may not be waived, without the written consent of the Holder.

     10. Reservation of Stock, etc., Issuable on Exercise of Warrant.
The Company will at all times reserve and keep available, solely for issuance and delivery on the
exercise of this Warrant, all Warrant Shares from time to time issuable on the exercise hereof.
Any Warrant Shares issued hereunder shall be deemed to be “Shares” as such term is defined in the
Purchase Agreement.

     11. Exchange of Warrant. On surrender for exchange of this Warrant, properly
endorsed, to the Company, the Company at its expense will issue and deliver to or on the order of
the Holder thereof a new warrant or warrant of like tenor, in the name of the Holder or as the
Holder (on payment by the Holder of any applicable transfer taxes) may direct, calling in the
aggregate on the face or faces thereof for the number of Warrant Shares called for on the face or
faces of this Warrant or Warrants so surrendered.

     12. Warrant Agent. The Company may, by written notice to any holder of this Warrant,
appoint an agent for the purpose of issuing Warrant Shares on the exercise of this Warrant pursuant
to Section 1 or exchanging this Warrant pursuant to Section 11, and thereafter any such issuance or
exchange, as the case may be, shall be made at such office by such agent.

     13. Negotiability, Etc. This Warrant is issued upon the following terms, to all of
which any holder or owner hereof by the taking hereof consents and agrees:

	 	(a)	 	title to this Warrant may be transferred by endorsement (by the
Holder executing the form of assignment at the end hereof) and delivery in the
same manner as in the case of a negotiable instrument transferable by
endorsement and delivery;
	 
	 	(b)	 	any person in possession of this Warrant properly endorsed is
authorized to represent himself as absolute owner hereof and is empowered to
transfer absolute title hereto by endorsement and delivery hereof to a bona
fide purchaser hereof for value; each prior taker or owner waives and renounces
all of his equities or rights in this Warrant in favor of each such bona fide
purchaser, and each such bona fide purchaser shall acquire absolute title
hereto and to all rights represented hereby; and

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	 	(c)	 	until this Warrant is transferred on the books of the Company,
the Company may treat the registered Holder as the absolute owner hereof for
all purposes, notwithstanding any notice to the contrary.

     14. Notices, Etc. All notices and other communications from the Company to the Holder
of this Warrant shall be mailed by first class registered or certified mail, postage prepaid,
at such address as may have been furnished to the Company in writing by the Holder or, until the
Holder furnishes to the Company an address, then to, and at the address of, the last holder of this
Warrant who has so furnished an address to the Company. All notices and other communications from
the Holder or in connection herewith to the Company shall be mailed by first-class certified or
registered mail, postage prepaid, to the Company at its principal office set forth below. If the
Company should at any time change the location of its principal office to a place other than as set
forth below, it shall give prompt written notice to the Holder and thereafter all references in
this Warrant to the location of its principal office at the particular time shall be as so
specified in such notice.

     15. Governing Law. This Warrant shall be governed by, and construed in accordance
with, the laws of the State of Delaware (without reference to the conflicts of laws provisions
thereof).

     16. Miscellaneous. The headings in this Warrant are for purposes of reference only,
and shall not limit or otherwise affect any of the terms hereof. This Warrant is being executed as
an instrument under seal. The invalidity or unenforceability of any provision hereof shall in no
way affect the validity or enforceability of any other provision.

	 	 	 	 	 
	Issue Date: September ___, 2000	AUTHENTEC, INC.

 	 
	 	By:  	
 	 
	 	 	Scott Moody, President 	 
	 	 	 	 	 
	 	 	Address:	 	 
	 	 	 	 
	 

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FORM OF SUBSCRIPTION

(To be signed only on exercise of Warrant)

			
	TO: AuthenTec, Inc.
	 	Dated: _____________

     The undersigned, pursuant to the provisions set forth in the attached Warrant (No. ___),
hereby irrevocably elects to purchase (check applicable box):

	 	o 	 _____________ shares of the ___Stock covered by such Warrant; or
	 
	 	o 	 the maximum number of shares of _____________ Stock covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 1(d).

     The undersigned herewith makes payment of the full purchase price for such shares at the price
per share provided for in such Warrant, which is $___. Such payment takes the form of (check
applicable box or boxes):

	 	 	o $_____________ in lawful money of the United States; and/or
	 
	 	 	o the cancellation of such portion of the attached Warrant as is exercisable for
a total of _____________ Warrant Shares (using a Fair Market Value of
$ _____________  per share for
purposes of this calculation); and/or
	 
	 	 	o the cancellation of such number of Warrant Shares as is necessary, in
accordance with the formula set forth in Section 1(d), to exercise this Warrant with
respect to the maximum number of Warrant Shares purchasable pursuant to the cashless
exercise procedure set forth in Section 1(d).

     The undersigned hereby also requests that the certificates for such shares be issued in the
name of, and delivered to _____________, whose address is _____________.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 

	 	(Signature must conform to name of holder as
specified on the face of this Warrant)
	 
	 	 
	 

	 	 
	 

	 	(Address)

 

 

FORM OF ASSIGNMENT

(To be signed only on transfer of Warrant)

     For value received, the undersigned hereby sells, assigns, and transfers unto _____________
the right represented by the within Warrant to purchase that number of shares of _____________;
Stock of AuthenTec, Inc. to which the within Warrant relates, and appoints _____________;
Attorney to transfer such right on the books of AuthenTec, Inc. with full power of substitution in
the premises.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 

	 	(Signature must conform to name of holder as
specified on the face of this Warrant)
	 
	 	 
	 

	 	 
	 

	 	(Address)

Signed in the presence of:

____________________________EX-4.4 Form of Warrant

 

Exhibit 4.4

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE
SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION
STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY
TO THE COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED OR (iii) RECEIPT OF NO-ACTION LETTERS FROM
THE APPROPRIATE GOVERNMENTAL AUTHORITIES.

AUTHENTEC, INC. 

WARRANT TO PURCHASE _____ SHARES

OF SERIES C PREFERRED STOCK

     THIS
CERTIFIES THAT, for value received, ________________ (the “Holder”) is entitled to subscribe
for and purchase ________________ shares of the fully paid and nonassessable Series C Convertible Preferred
Stock, par value $0.01 per share (as adjusted pursuant to Section 4 hereof, the “Shares”) of
AuthenTec, Inc., a Delaware corporation (the “Company”), at the price of $0.50119 per share (such
price and such other price as shall result, from time to time, from the adjustments specified in
Section 4 hereof is herein referred to as the “Warrant Price”), subject to the provisions and upon
the terms and conditions hereinafter set forth. As used herein, (a) the term “Series Preferred”
shall mean the Company’s presently authorized Series C Preferred Stock, and any stock into or for
which such Series C Preferred Stock may hereafter be converted or exchanged, and after the
automatic conversion of all the Series C Preferred Stock to Common Stock, if any, shall mean the
Company’s Common Stock, (b) the term “Date of Grant” shall mean February 24, 2003, and (c) the term
“Other Warrants” shall mean any other warrants to purchase Series C Preferred Stock issued by the
Company pursuant to the terms of the Series C Preferred Stock and Warrant Purchase Agreement, dated
February 24, 2003 (the “Purchase Agreement”) and warrants to purchase Series C Preferred Stock
issued by the Company pursuant to the SoundView Side Letter, as defined in the Purchase Agreement,
and any warrant issued upon transfer or partial exercise of or in lieu of this Warrant. The term
“Warrant” as used herein shall be deemed to include Other Warrants unless the context clearly
requires otherwise.

     1. Term. The purchase right represented by this Warrant is exercisable, in whole or
in part, at any time and from time to time from the Date of Grant through December 31, 2007.

     2. Method of Exercise; Payment; Issuance of New Warrant. Subject to Section 1 hereof,
the purchase right represented by this Warrant may be exercised by the Holder hereof, in whole or
in part and from time to time, at the election of the Holder hereof, by (a) the surrender of this
Warrant (with the notice of exercise substantially in the form attached hereto as Exhibit A-1 duly
completed and executed) at the principal office of the Company and by the payment to the Company,
by certified or bank check, or by wire transfer to an account designated by the Company (a “Wire
Transfer”) of an amount equal to the then applicable Warrant Price multiplied by the number of
Shares then being purchased; (b) if in connection with a public offering (a “Public Offering”)
under

 

 

the Securities Act of
1933, as amended (the “Act”) of the Company’s securities, pursuant to an effective
registration statement under the Act (a “Registration Statement”), the surrender of this Warrant
(with the notice of exercise form attached hereto as Exhibit A-2 duly completed and executed) at
the principal office of the Company together with notice of arrangements reasonably satisfactory to
the Company for payment to the Company either by certified or bank check or by Wire Transfer from
the proceeds of the sale of shares to be sold by the Holder in such public offering of an amount
equal to the then applicable Warrant Price per share multiplied by the number of Shares then being
purchased; or (c) exercise of the conversion right provided for in Section 10.2 hereof. The person
or persons in whose name(s) any certificate(s) representing shares of Series Preferred shall be
issuable upon exercise of this Warrant shall be deemed to have become the holder(s) of record of,
and shall be treated for all purposes as the record Holder(s) of, the shares represented thereby
(and such shares shall be deemed to have been issued) immediately prior to the close of business on
the date or dates upon which this Warrant is exercised. In the event of any exercise of the rights
represented by this Warrant, certificates for the shares of stock so purchased shall be delivered
to the Holder hereof as soon as possible and in any event within thirty (30) days after such
exercise and, unless this Warrant has been fully exercised or expired, a new Warrant representing
the portion of the Shares, if any, with respect to which this Warrant shall not then have been
exercised shall also be issued to the Holder hereof as soon as possible and in any event within
such thirty-day period; provided, however, at such time as the Company is subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended, if requested by the Holder, the
Company shall cause its transfer agent to deliver the certificate representing Shares issued upon
exercise of this Warrant to a broker or other person (as directed by the Holder exercising this
Warrant) within the time period required to settle any trade made by the Holder after exercise of
this Warrant.

     3. Stock Fully Paid; Reservation of Shares. All Shares that may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance pursuant to the terms and
conditions herein, be fully paid and nonassessable, and free from all preemptive rights and taxes,
liens and charges with respect to the issue thereof. During the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have authorized, and
reserved for the purpose of the issue upon exercise of the purchase rights evidenced by this
Warrant, a sufficient number of shares of its Series Preferred to provide for the exercise of the
rights represented by this Warrant and a sufficient number of shares of its Common Stock to provide
for the conversion of the Series Preferred into Common Stock.

     4. Adjustment of Warrant Price and Number of Shares. The number and kind of
securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows:

          (a) Reclassification or Merger. In case of any reclassification or change of
securities of the class issuable upon exercise of this Warrant (including without limitation the
automatic conversion of the Series Preferred to Common Stock)(other than a change in par value, or
from par value to no par value, or from no par value to par value, or as a result of a subdivision
or combination), or in case of any merger of the Company with or into another corporation (other
than a merger with another corporation in which the Company is the acquiring and the surviving

2

 

corporation and which does not result in any reclassification or change of outstanding securities
issuable upon
exercise of this Warrant), or in case of any sale of all or substantially all of the assets of
the Company, the Company, or such successor or purchasing corporation, as the case may be, shall
duly execute and deliver to the Holder a new Warrant (in form and substance satisfactory to the
Holder), or the Company shall make appropriate provision without the issuance of a new Warrant, so
that the Holder shall have the right to receive upon exercise of this Warrant, at a total purchase
price not to exceed that payable upon the exercise of the unexercised portion of this Warrant, and
in lieu of the shares of Series Preferred theretofore issuable upon exercise of this Warrant, (i)
the kind and amount of shares of stock, other securities, money and property receivable upon such
reclassification, change, merger or sale by a Holder of the number of shares of Series Preferred
then purchasable under this Warrant, or (ii) in the case of such a merger or sale in which the
consideration paid consists all or in part of assets other than securities of the successor or
purchasing corporation, at the option of the Holder, the securities of the successor or purchasing
corporation having a value at the time of the transaction equivalent to the value of the Series
Preferred purchasable upon exercise of this Warrant at the time of the transaction. Any new
Warrant shall provide for adjustments that shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Section 4. The provisions of this Section 4(a) shall
similarly apply to successive reclassifications, changes, mergers and sales.

          (b) Split, Subdivision or Combination of Shares. If the Company shall at any time
while this Warrant remains outstanding and unexpired increase the outstanding shares of Series
Preferred by split, subdivision or otherwise, the Warrant Price shall be proportionately decreased
and the number of Shares issuable hereunder shall be proportionately increased; conversely, if the
Company shall at any time while this Warrant remains outstanding and unexpired reduce the
outstanding shares of Series Preferred by reverse split, combination or otherwise, the Warrant
Price shall be proportionately increased and the number of Shares issuable hereunder shall be
proportionately decreased.

          (c) Stock Dividends and Other Distributions. If the Company at any time while this
Warrant is outstanding and unexpired shall (i) pay a dividend with respect to Series Preferred
payable in Series Preferred, then the Warrant Price shall be adjusted, from and after the date of
determination of stockholders entitled to receive such dividend or distribution, to that price
determined by multiplying the Warrant Price in effect immediately prior to such date of
determination by a fraction (A) the numerator of which shall be the total number of shares of
Series Preferred outstanding immediately prior to such dividend or distribution, and (B) the
denominator of which shall be the total number of shares of Series Preferred outstanding
immediately after such dividend or distribution; or (ii) make any other distribution with respect
to Series Preferred (except any distribution specifically provided for in Sections 4(a) and 4(b)),
then, in each such case, provision shall be made by the Company such that the Holder shall receive
upon exercise of this Warrant a proportionate share of any such dividend or distribution as though
it were the holder of the Series Preferred (or Common Stock issuable upon conversion thereof) as of
the record date fixed for the determination of the stockholders of the Company entitled to receive
such dividend or distribution.

3

 

          (d) Adjustment of Number of Shares. Upon each adjustment in the Warrant Price, the
number of Shares of Series Preferred purchasable hereunder shall be adjusted, to the nearest whole
share (with one half rounded up), to the product obtained by multiplying the number of Shares
purchasable immediately prior to such adjustment in the Warrant Price by a fraction, the numerator
of
which shall be the Warrant Price immediately prior to such adjustment and the denominator of
which shall be the Warrant Price immediately thereafter.

          (e) Antidilution Rights. The other antidilution rights applicable to the Shares
purchasable hereunder set forth in the Company’s Second Amended and Restated Certificate of
Incorporation, a true and complete copy of which is attached as Exhibit A to the Purchase Agreement
(the “Charter”), including the price-based antidilution set forth in Article IV, Section I(6)(j) of
the Charter, shall apply to the Shares prior to exercise and after exercise of this Warrant. The
Company shall promptly provide the Holder hereof with a certified copy of any restatement,
amendment, modification or waiver of the Charter promptly after the same has been made.

     5. Notice of Adjustments. Whenever the Warrant Price or the number of Shares
purchasable hereunder shall be adjusted pursuant to Section 4 hereof, the Company shall deliver
(pursuant to Section 12) to the Holder a certificate signed by its chief financial officer setting
forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated, and the Warrant Price and the number of Shares
purchasable hereunder after giving effect to such adjustment. In addition, whenever the conversion
price or conversion ratio of the Series Preferred shall be adjusted, the Company shall deliver
(pursuant to Section 12) to the Holder a certificate signed by its chief financial officer setting
forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated, and the conversion price or ratio of the Series
Preferred after giving effect to such adjustment.

     6. Fractional Shares. No fractional shares of Series Preferred will be issued in
connection with any exercise hereunder, but in lieu of such fractional shares the Company shall
make a cash payment therefor based on the fair market value of the Series Preferred on the date of
exercise as reasonably determined in good faith by the Company’s Board of Directors.

     7. Disposition of Warrant or Shares. Holder agrees not to make any disposition of all
or any portion of this Warrant unless and until the Holder has complied with the terms of the
Stockholders’ Agreement, as defined in the Purchase Agreement, and the transferee has agreed in
writing for the benefit of the Company to be bound by this Section 7 and the Ancillary Agreements
(as defined in the Purchase Agreement) provided and to the extent this Section and such agreements
are then applicable, and:

          (a) There is then in effect a Registration Statement under the Act covering such proposed
disposition and such disposition is made in accordance with such Registration Statement; or

          (b) (i) Such Holder shall have notified the Company of the proposed disposition and shall have
furnished the Company with a detailed statement of the circumstances surrounding the proposed
disposition, and (ii) if reasonably requested by the Company, such Holder
 

4

 

shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition
will not require registration of such shares under the Act. It is agreed
that the Company will not require opinions of counsel for transactions made pursuant to Rule
144 except in unusual circumstances.

          (c) Notwithstanding the provisions of Paragraphs (a) and (b) above, no such registration
statement or opinion of counsel shall be necessary for a transfer by a Holder to any of its
affiliates or to a Holder that is a limited liability company to a member of such limited liability
company, that is a partnership to a partner of such partnership or a retired partner of such
partnership who retires after the date hereof, or to the estate of any such member, partner or
retired partner or the transfer by gift, will or intestate succession of any member or partner to
his or her spouse or to the siblings, lineal descendants or ancestors of such member, partner or
his or her spouse, if the transferee agrees in writing to be subject to the terms hereof to the
same extent as if he or she were an original Holder hereunder.

     8. Rights as Stockholders; Information. No Holder, as such, shall be entitled to vote
or receive dividends upon or be deemed the Holder of the Shares underlying this Warrant until this
Warrant shall have been exercised and the Shares purchasable upon the exercise hereof shall have
become deliverable, as provided herein. Notwithstanding the foregoing, the Company will transmit
to the Holder such information, documents and reports as are generally distributed to the holders
of any preferred class or series of the securities of the Company concurrently with the
distribution thereof to such stockholders.

     9. Registration Rights. The registration and other rights of the Third Amended and
Restated Registration Rights Agreement dated February 24, 2003, shall apply to the Holder(s).

     10. Additional Rights.

     10.1 Acquisition Transactions. The Company shall provide the Holder with at least
twenty (20) days’ written notice prior to closing thereof of the terms and conditions of any of the
following transactions (to the extent the Company has notice thereof): (i) the sale, lease,
exchange, conveyance or other disposition of all or substantially all of the Company’s property or
business, or (ii) its merger into or consolidation with any other corporation (other than a
wholly-owned subsidiary of the Company), or any transaction (including a reorganization or sale of
securities) or series of related transactions, in which more than 50% of the voting power of the
Company is disposed of.

     10.2 Right to Convert Warrant into Stock: Net Issuance.

          (a) Right to Convert. In addition to and without limiting the rights of the Holder
under the terms of this Warrant, the Holder shall have the right to convert this Warrant or any
portion thereof (the “Conversion Right”) into shares of Series Preferred as provided in this
Section 10.2 at any time or from time to time during the term of this Warrant. Upon exercise of
the Conversion Right with respect to a particular number of shares subject to this Warrant (the
“Converted Warrant Shares”), the Company shall deliver to the Holder (without payment by the

5

 

          Holder
of any exercise price or any cash or other consideration) that number of shares of fully paid and
nonassessable Series Preferred as is determined according to the following formula:

	 	 	 	 	 
	X

	 	=
	 	B - A

      Y

	 	 	 	 	 	 	 
	Where:

	 	X
	 	=
	 	the number of shares of Series Preferred that shall be issued to Holder
	 
	 	 	 	 	 	 
	 

	 	Y
	 	=
	 	the fair market value of one share of Series Preferred
	 
	 	 	 	 	 	 
	 

	 	A
	 	=
	 	the aggregate Warrant Price of the specified number of
Converted Warrant Shares immediately prior to the exercise of the Conversion
Right (i.e., the number of Converted Warrant Shares multiplied by the Warrant
Price)
	 
	 	 	 	 	 	 
	 

	 	B
	 	=
	 	the aggregate fair market value of the specified number of
Converted Warrant Shares (i.e., the number of Converted Warrant Shares
multiplied by the fair market value of one Converted Warrant Share)

     No fractional shares shall be issuable upon exercise of the Conversion Right, and, if the
number of shares to be issued determined in accordance with the foregoing formula is other than a
whole number, the Company shall pay to the Holder an amount in cash equal to the fair market value
of the resulting fractional share on the Conversion Date (as hereinafter defined). For purposes of
Section 10 of this Warrant, shares issued pursuant to the Conversion Right shall be treated as if
they were issued upon the exercise of this Warrant.

     (b) Method of Exercise. The Conversion Right may be exercised by the Holder by the
surrender of this Warrant at the principal office of the Company together with a written statement
(in the form of Exhibit A-1 or Exhibit A-2 hereto) specifying that the Holder thereby intends to
exercise the Conversion Right and indicating the number of shares subject to this Warrant which are
being surrendered (referred to in Section 10.2(a) hereof as the Converted Warrant Shares) in
exercise of the Conversion Right. Such conversion shall be effective upon receipt by the Company
of this Warrant together with the aforesaid written statement, or on such later date as is
specified therein (the “Conversion Date”), and, at the election of the Holder hereof, may be made
contingent upon the closing of the sale of a Public Offering. Certificates for the shares issuable
upon exercise of the Conversion Right and, if applicable, a new warrant evidencing the balance of
the shares remaining subject to this Warrant, shall be issued as of the Conversion Date and shall
be delivered to the Holder within thirty (30) days following the Conversion Date.

     (c) Determination of Fair Market Value. For purposes of this Section 10.2, “fair
market value” of a share of Series Preferred as of a particular date (the “Determination Date”)
shall mean:

          (i) If the Conversion Right is exercised in connection with and contingent upon a Public
Offering, and if the Company’s Registration Statement relating to such Public Offering
(“Registration Statement”) has been declared effective by the Securities and Exchange Commission,
then the initial “Price to Public” specified in the final prospectus with respect to such offering.

6

 

          (ii) If the Conversion Right is not exercised in connection with and contingent upon a Public
Offering, then as follows:

               (A) If traded on a securities exchange, the fair market value of the Series Preferred shall be
deemed to be the average of the closing prices of the Series Preferred on such exchange over the
twenty (20) trading days immediately prior to the Determination Date;

               (B) If traded on the Nasdaq Stock Market or other over-the-counter system, the fair market
value of the Common Stock shall be deemed to be the average of the closing bid prices of the Series
Preferred over the twenty trading (20) days immediately prior to the Determination Date; and

               (C) If there is no public market for the Series Preferred, then fair market value shall be
determined by mutual agreement of the Holder and the Company’s Board of Directors.

In making a determination under clauses (A) or (B) above, if on the Determination Date, twenty
trading days had not passed since the Public Offering, if such Public Offering was the Company’s
initial public offering of its shares of Common Stock (the “IPO”), then the fair market value of
the Common Stock shall be the average closing prices or closing bid prices, as applicable, for the
shorter period beginning on and including the date of the IPO and ending on the trading day prior
to the Determination Date (or if such period includes only one trading day the closing price or
closing bid price, as applicable, for such trading day). If closing prices or closing bid prices
are no longer reported by a securities exchange or other trading system, the closing price or
closing bid price shall be that which is reported by such securities exchange or other trading
system at 4:00 p.m. New York City time on the applicable trading day.

     10.3 Exercise Prior to Expiration.  To the extent this Warrant is not previously
exercised as to all of the Shares subject hereto, and if the fair market value of one share of the
Series Preferred is greater than the Warrant Price then in effect, this Warrant shall be deemed
automatically exercised pursuant to Section 10.2 above (even if not surrendered) immediately before
its expiration. For purposes of such automatic exercise, the fair market value of one share of the
Series Preferred upon such expiration shall be determined pursuant to Section 10.2(c). To the
extent this Warrant or any portion thereof is deemed automatically exercised pursuant to this
Section 10.3, the Company agrees to promptly notify the Holder hereof of the number of Shares, if
any, the Holder hereof is to receive by reason of such automatic exercise.

     11. Modification and Waiver. This Warrant and any provision hereof may be changed,
waived, discharged or terminated upon the written consent of the Company and the holders of 66% of
the Warrant Shares issuable upon exercise of the Warrants held by all holders of the Warrants and
Other Warrants. Any amendment or waiver effected in accordance with this Section 11 shall be
binding upon each Holder of Warrants and Other Warrants.

7

 

     12. Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given upon personal delivery to
the party to be notified or five (5) days after mailing if deposited with the United States Post
Office,
by registered or certified mail, postage prepaid and addressed to the party to be notified at
the address indicated for such party on the signature page hereof, or at such other address as such
party may designate by ten (10) days’ advance written notice to the other parties.

     13. Binding Effect on Successors. This Warrant shall be binding upon all successors
and assigns, including without limitation any corporation succeeding the Company by merger,
consolidation or acquisition of all or substantially all of the Company’s assets. All of the
obligations of the Company relating to the Series Preferred issuable upon the exercise or
conversion of this Warrant shall survive the exercise, conversion and termination of this Warrant
and all of the covenants and agreements of the Company shall inure to the benefit of the successors
and assigns of the Holder hereof.

     14. Lost Warrants or Stock Certificates. The Company covenants to the Holder hereof
that, upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate and, in the case of any such
loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or
in the case of any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, the Company will make and deliver a new Warrant or stock certificate, of like tenor,
in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate.

     15. Descriptive Headings. The descriptive headings of the various Sections of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant. The
language in this Warrant shall be construed as to its fair meaning without regard to which party
drafted this Warrant.

     16. Governing Law. This Agreement shall be governed by and construed under the laws of
the State of Delaware as applied to agreements among Delaware residents entered into and to be
performed entirely within Delaware.

     17. Remedies. In case any one or more of the covenants and agreements contained in
this Warrant shall have been breached, the Holders hereof (in the case of a breach by the Company),
or the Company (in the case of a breach by a Holder), may proceed to protect and enforce their or
its rights either by suit in equity and/or by action at law, including, but not limited to, an
action for damages as a result of any such breach and/or an action for specific performance of any
such covenant or agreement contained in this Warrant.

     18. No Impairment of Rights. Except as pursuant to an amendment of the Charter in
compliance with the requirements of Article IV Section I(8) of the Charter or any successor
provision thereto, the Company will not, by amendment of its Charter or through any other means,
avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will
at all times in good faith assist in the carrying out of all such terms and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of the Holder against
impairment.

8

 

     19. Severability. The invalidity or unenforceability of any provision of this Warrant
in any jurisdiction shall not affect the validity or enforceability of such provision in any other
jurisdiction, or affect any other provision of this Warrant, which shall remain in full force and
effect.

     20. Recovery of Litigation Costs. If any legal action or other proceeding is brought
for the enforcement of this Warrant, or because of an alleged dispute, breach, default, or
misrepresentation in connection with any of the provisions of this Warrant, the successful or
prevailing party or parties shall be entitled to recover reasonable attorneys’ fees and other costs
incurred in that action or proceeding, in addition to any other relief to which it or they may be
entitled.

     21. Entire Agreement. This Warrant constitutes the entire agreement between the
parties pertaining to the subject matter contained in it and supersedes all prior and
contemporaneous agreements, representations, and undertakings of the parties, whether oral or
written, with respect to such subject matter.

     The Company has caused this Warrant to be duly executed and delivered as of the Date of Grant
specified above.

	 	 	 	 	 
	 	Authen Tec, Inc.

 	 
	 	By:  	
 	 
	 	Title:  	
 	 
	 	 	 	 

9

 

	 	 	 	 	 

EXHIBIT A-1

NOTICE OF EXERCISE

	 	 	 	 	 	 	 	 	 
	To:	 	AUTHENTEC, INC. (the “Company”)
	 
	 	 	 	 	 	 	 	 
	 	 	 	1.	 	 	The undersigned hereby:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	elects to purchase _____________ shares of [Series Preferred Stock] [Common Stock]
of the Company pursuant to the terms of the attached Warrant, and tenders
herewith payment of the purchase price of such shares in full, or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	elects to exercise its net issuance rights pursuant to Section 10.2 of the
attached Warrant with respect to _____________ Shares of [Series Preferred Stock]
[Common Stock].
	 
	 	 	 	 	 	 	 	 
	 	 	 	2.	 	 	Please issue a certificate or certificates representing ________ shares in the name of the undersigned or in such other name or names as are specified below:

	 	 	 
	 
	 
	 	 
	 	(Name)	 
	 	 	 
	 	 	 
	 
	 	 
	 	 	 
	 	 	 
	 
	 	 
	 
	(Address)	 

     3. The undersigned represents that the aforesaid shares are being acquired for the account of
the undersigned for investment and not with a view to, or for resale in connection with, the
distribution thereof and that the undersigned has no present intention of distributing or reselling
such shares, all except as in compliance with applicable securities laws.

_____________________________________________

(Signature)

_____________

        (Date)

A-1

 

EXHIBIT A-2

NOTICE OF EXERCISE

To: AUTHENTEC, INC. (the “Company”)

     1. Contingent upon and effective immediately prior to the closing (the “Closing”) of the
Company’s public offering contemplated by the Registration Statement on Form S___, filed___,
200___, the undersigned hereby:

     o
elects to purchase _____________ shares of [Series Preferred Stock] [Common Stock] of the Company (or
such lesser number of shares as may be sold on behalf of the undersigned at the Closing) pursuant
to the terms of the attached Warrant, or

     o elects to exercise its net issuance rights pursuant to Section 10.2 of the attached Warrant
with respect to _____________ Shares of [Series Preferred Stock] [Common Stock].

     2. Please deliver to the custodian for the selling stockholders a stock certificate
representing such _____________  shares.

     3. The undersigned has instructed the custodian for the selling stockholders to deliver to the
Company $_____________ or, if less, the net proceeds due the undersigned from the sale of shares in the
aforesaid public offering. If such net proceeds are less than the purchase price for such shares,
the undersigned agrees to deliver the difference to the Company prior to the Closing.

_____________________________________________

(Signature)

_____________

        (Date)

A-2

 

EXHIBIT B

CHARTER

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