Document:

THE WARRANT AND ANY SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT

HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITI

 

Exhibit

4.1

 

THE

WARRANT AND ANY SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN

REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE

SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED,

PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION

STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION

OF COUNSEL OR UPON EVIDENCE REASONABLY SATISFACTORY TO FIBERSTARS, INC. THAT

SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH

ACT OR ANOTHER APPLICABLE EXEMPTION.

 

FIBERSTARS, INC.

 

Warrant for the purchase of

[             ]

shares of Common Stock

 

	

  No. ____

  	

   

  	

  March 29, 2002

  

 

THIS

CERTIFIES that, for good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged,

[                       ]

or registered assigns (the “Holder”), is the registered holder of this

warrant (the “Warrant”), entitling the Holder to subscribe for and purchase

from FIBERSTARS, INC., a California corporation (the “Company”), upon the terms and

conditions set forth herein, at any time or from time to time, during the

period commencing with the date hereof and ending on 5:00 p.m. (Pacific time)

on the date of the fifth anniversary of the date hereof (the “Exercise

Period”), up to an aggregate of

[              ]

fully paid and non-assessable shares (the “Warrant Shares”) of the Company’s Common

Stock (“the

Common Stock”), at an initial exercise price (subject to adjustment

as set forth herein, the “Exercise Price”) per share equal to $4.30

per share, upon surrender of this Warrant and payment of the Exercise Price as

provided in Section 2.  As used herein,

the term “this

Warrant” shall mean and include this Warrant and any Warrant or

Warrants hereafter issued as a consequence of the exercise or transfer of this

Warrant in whole or in part.

 

1.             Warrant.  This Warrant is issued pursuant to, and in

accordance with, the Common Stock and Warrant Purchase Agreement between the

Company and Holder, dated the date hereof (the “Purchase Agreement”).

 

2.          Exercise

of Warrant. 

This Warrant may be exercised, in whole at any time or in part from time

to time, during the Exercise Period by the surrender of this Warrant (with the

Election to Exercise attached hereto), to the Company at its main office, or

such other place which the Company may designate in writing, together with

proper payment of an amount equal to the product of the Exercise Price and the

number of Warrant Shares being exercised (the “Aggregate Warrant Price”).  Payment of the Aggregate Warrant Price shall

be made by certified or official bank check payable to the order of the Company

or by wire transfer of immediately available funds to an account designated by

the Company.  If this Warrant is

exercised in part, this Warrant must be exercised for a number of whole shares

of the Common Stock, and the Holder shall be entitled to receive a new Warrant

covering the Warrant Shares which have not been exercised and setting forth the

proportionate part of the Aggregate Warrant Price applicable to 

 

 

such Warrant

Shares.  Upon surrender of this Warrant,

the Company will (a) issue a certificate or certificates in the name of

the Holder for the largest number of whole shares of Common Stock to which the

Holder shall be entitled and, if this Warrant is exercised in whole, in lieu of

any fractional share of the Common Stock to which the Holder shall be entitled,

pay to the Holder cash in an amount equal to the fair market value of such fractional

share (determined in such reasonable manner as the Board of Directors of the

Company shall determine), and (b) deliver the other securities and

properties receivable upon the exercise of this Warrant, or the proportionate

part thereof if this Warrant is exercised in part, pursuant to the provisions

of this Warrant.

 

(a)     Cashless

Exercise.  Notwithstanding anything

contained herein to the contrary, the holder of this Warrant may, in its sole

discretion, exercise this Warrant in whole or in part and, in lieu of making

the cash payment otherwise contemplated to be made to the Company upon such

exercise in payment of the Aggregate Warrant Price, elect instead to receive

upon such exercise the “Net Number” of shares of Common Stock determined

according to the following formula (a “Cashless Exercise”):

 

	

  Net Number = 

  	

    (A x B) - (A x C)

  
	

   

  	

  B

  	

   

  

 

For

purposes of the foregoing formula:

 

A   =                   the total number of shares with

respect to which this Warrant is then being exercised.

 

B   =                     the closing sale price of the

Common Stock (as reported by the Wall Street Journal) on the date immediately

preceding the date of the Exercise Notice.

 

C   =                     the Exercise Price then in effect

for the applicable Warrant Shares at the time of such exercise.

 

3.          Registration, Registration Rights,

and Transfers.  

 

(a)        Any Warrants issued upon the transfer or

exercise in part of this Warrant shall be numbered and shall be registered in a

warrant register (the “Warrant Register”) maintained by the

Company or its transfer agent as they are issued.  The Company shall be entitled to treat the registered holder of

any Warrant on the Warrant Register as the owner in fact thereof for all

purposes and shall not be bound to recognize any equitable or other claim to or

interest in such Warrant on the part of any other person, and shall not be

liable for any registration of transfer of Warrants which are registered or to

be registered in the name of a fiduciary or the nominee of a fiduciary unless

made in accordance with the terms hereof.

 

(b)        This Warrant, and the shares of Common

Stock issuable upon its exercise, are subject to the restrictions upon

transferability and registration rights as set forth in the Fiberstars, Inc.

Common Stock and Warrant Purchase Agreement of even date pursuant to which this

Warrant issues, and no others.

 

B-2

 

(c)        This Warrant may be exchanged, at the

option of the Holder hereof, for another Warrant, or other Warrants of

different denominations, of like tenor and representing in the aggregate the

right to purchase a like number of Warrant Shares (or portions thereof), upon

surrender to the Company or its duly authorized agent.

 

4.          Adjustment

of Exercise Price and Number of Shares.

 

(a)        Subdivision and Combination.  In case the Company shall at any time

subdivide (by stock split, stock dividend or otherwise) or combine the

outstanding Common Stock, the Exercise Price shall be decreased, in the case of

subdivision, or increased, in the case of combination, in the same proportion

as the Common Stock is subdivided or combined, in each case effective

automatically upon, and simultaneously with, the effectiveness of the

subdivision or combination which gives rise to the adjustment.

 

(b)        Adjustment in Number of Shares.  Upon each adjustment of the Exercise Price

pursuant to the provisions of this Section 4, the number of Warrant Shares

issuable upon the exercise of this Warrant shall be adjusted to the nearest

full amount by multiplying a number equal to the Exercise Price in effect

immediately prior to such adjustment by the number of Warrant Shares issuable

upon exercise of this Warrant immediately prior to such adjustment and dividing

the product so obtained by the adjusted Exercise Price.

 

(c)        Merger or Consolidation.  In case the Company after the date hereof

(i) shall consolidate with or merge into any other person and shall not be

the continuing or surviving corporation of such consolidation or merger, or

(ii) shall permit any other person to consolidate with or merge into the

Company and the Company shall be the continuing or surviving person but, in

connection with such consolidation or merger, the Common Stock shall be changed

into or exchanged for stock or other securities of any other person or cash or

any other property, or (iii) shall transfer all or substantially all of

its properties or assets to any other person, or (iv) shall effect a

capital reorganization or reclassification of the Common Stock (other than a

capital reorganization or reclassification resulting in the issue of additional

Common Stock for which adjustment in the Exercise Price is provided in this

Section 8), then, and in the case of each such transaction, proper

provision shall be made so that, upon the basis and the terms and in the manner

provided in this Warrant, the Holder of this Warrant, upon the exercise thereof

at any time after the consummation of such transaction, shall be entitled to

receive (at the aggregate Exercise Price in effect at the time of such

consummation for all Warrant Shares issuable upon such exercise immediately

prior to such consummation), in lieu of the Common Stock or other securities

issuable upon such exercise prior to such consummation, the highest amount of

securities, cash or other property to which the Holder would actually have been

entitled as shareholder upon such consummation if the Holder had exercised the

rights represented by this Warrant immediately prior thereto, subject to

adjustments (subsequent to such consummation) as nearly equivalent as possible

to the adjustments provided for in this Section 4.

 

(d)        Assumption of Obligations.  Notwithstanding anything contained in this

Warrant to the contrary, the Company will not effect any of the transactions

described in clauses (i) through (iv) of Section 4(c) unless, prior to the

consummation thereof, each person (other than the Company) which may be

required to deliver any stock, securities, cash or property upon the exercise

of this Warrant as provided herein shall assume, by written instrument

delivered to, and 

 

B-3

 

reasonably

satisfactory to, the Holder of this Warrant, (a) the obligations of the Company

under this Warrant (and if the Company shall survive the consummation of such

transaction, such assumption shall be in addition to, and shall not release the

Company from, any continuing obligations of the Company under this Warrant) and

(b) the obligation to deliver to the Holder such shares of stock, securities,

cash or property as, in accordance with the foregoing provisions of this

Section 4, the Holder may be entitled to receive.

 

(e)        Notice of Adjustment Events.  Whenever the Company contemplates the

occurrence of an event which would give rise to adjustments under this Section

4, the Company shall use its reasonable best efforts to notify the Holder of

this Warrant, at least thirty (30) days prior to the record date with respect

to such event or, if no record date shall be established, at least thirty (30)

days prior to such event, a notice specifying (i) the nature of the

contemplated event, (ii) the date of which any such record is to be taken for

the purpose of such event, (iii) the date on which such event is expected to

become effective and (iv) the time, if any is to be fixed, when the holders of

record of Common Stock shall be entitled to exchange their Common Stock for

securities or other property deliverable in connection with such event.

 

(f)         Notice of Adjustments.  Whenever the Exercise Price or the kind of

securities or property issuable upon exercise of this Warrant, or both, shall

be adjusted pursuant to this Section 4, the Company shall make a certificate

signed by an executive officer of the Company, setting forth, in reasonable

detail, the event requiring the adjustment, the amount of the adjustment, the

method of which such adjustment was calculated (including a description of the

basis on which the Company made any determination hereunder), and the Exercise

Price and the kind of securities or property issuable upon exercise of this

Warrant after giving effect to such adjustment, and shall cause copies of such

certificate to be mailed (by first class mail postage prepaid) to the Holder

promptly after each adjustment.

 

5.          Reservation of Shares; Fully Paid

Stock.

 

(a)        The Company shall at all times reserve

and keep available, free from pre-emptive rights, out of its authorized and

unissued Common Stock, solely for the purpose of providing for the exercise of

the rights to purchase all Warrant Shares granted pursuant to this Warrant,

such number of shares of Common Stock as shall, from time to time, be

sufficient therefor.

 

(b)        The Company covenants that all shares of

Common Stock issuable upon exercise of this Warrant, upon receipt by the

Company of the full Exercise Price therefor, shall be duly and validly issued,

fully paid, non-assessable, and the Holder shall receive good and valid title

to such shares free and clear from any adverse claim (as defined in the

applicable Uniform Commercial Code), except such as have been created by the

Holder.

 

6.          Taxes.  The issuance of any shares or other

securities upon the exercise of this Warrant, and the delivery of certificates

or other instruments representing such shares or other securities, shall be

made without charge to the Holder for any tax or other charge in respect of

such issuance, other than applicable transfer taxes.  The Company shall not, however, be required to pay any tax which

may be payable in respect of any transfer involved in the issue and delivery of

any certificate in a name other than that of the Holder and the Company shall

not be required to issue or deliver any such certificate unless and until the

person or persons requesting the issue 

 

B-4

 

thereof shall have

paid to the Company the amount of such tax or shall have established to the

satisfaction of the Company that such tax has been paid.

 

7.          Legend.  Unless subject to an effective registration

statement filed with the United States Securities and Exchange Commission, the

Warrant Shares issued upon exercise of this Warrant shall be subject to a stop

transfer order and the certificate or certificates evidencing such Warrant

Shares shall bear the following legend:

 

(a)        The following legend under the Act:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE

NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,

OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, OFFERED FOR SALE,

ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION

STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION

OF COUNSEL OR UPON EVIDENCE REASONABLY SATISFACTORY TO FIBERSTARS, INC. THAT

SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH

ACT OR ANOTHER APPLICABLE EXEMPTION.”

 

(b)        Such

other legends as may be required under state securities laws.

 

8.          Replacement Warrant.  Upon receipt of evidence satisfactory to the

Company of the loss, theft, destruction, or mutilation of any Warrant (and upon

surrender of any Warrant at the principal office of the Company if mutilated),

and upon reimbursement of the Company’s reasonable incidental expenses and, if

reasonably requested, an indemnity reasonably acceptable to the Company, the

Company shall execute and deliver to the holder thereof a new Warrant of like

date, tenor, and denomination.

 

9.          Notices.

 

(a)        Unless otherwise provided, any notice,

request, demand or other communication required or permitted under this Warrant

shall be given in writing and shall be deemed effectively given upon personal

delivery to the party to be notified, or when sent by facsimile (with receipt

confirmed and promptly confirmed by personal delivery, U.S. first class mail,

or courier), or overnight courier service, or upon deposit with the United

States Post Office, by registered or certified mail, postage prepaid and

addressed as follows (or at such other address as a party may designate by

notice to the other):

 

B-5

 

If

to the Company:

 

Fiberstars,

Inc.

44259

Nobel Drive

Fremont

California 94538

Attention:  David N. Ruckert, CEO

Facsimile:  (510) 490-0947

Telephone:  (650) 490-0719

 

with a copy to:

 

Pillsbury

Winthrop LLP

2550

Hanover Street

Palo

Alto, California 94304

Attention:  Richard Bebb

Facsimile:  (650) 233-4545

Telephone:  (650) 233-4500

 

If

to Holder:

 

See

the address provided by the Holder on its counter-part signature page to the

Purchase Agreement.

 

10.        Warrant Holder Not Shareholder.  The Holder of any Warrant shall not have,

solely on account of such status, any rights of a shareholder of the Company,

either at law or in equity, or to any notice of meetings of shareholders or of

any other proceedings of the Company, except as provided in this Warrant.

 

11.        Remedies.  The Company agrees that the remedies at law

of the Holder, in the event of any default or threatened default by the Company

in the performance of or compliance with any of the terms hereof, may not be

adequate and such terms may, in addition to and not in lieu of any other

remedy, be specifically enforced by a decree of specific performance of any

agreement contained herein or by an injunction against a violation of any of

the terms hereof or otherwise.

 

12.        Headings.  The headings contained in this Warrant are

for convenience of reference only and are not part of this Warrant.

 

13.        Applicable Law.  This Warrant shall be construed in

accordance with the laws of the State of California applicable to contracts

made and performed within such State, without regard to principles of conflicts

of law.

 

B-6

 

IN

WITNESS WHEREOF, the Company has executed and delivered this Warrant as of the

date set forth above.

 

	

   

  	

  FIBERSTARS,

  INC., 

  
	

   

  	

   

  
	

   

  	

  a California

  corporation

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  

 

B-7

 

	

  To:

  	

  Fiberstars, Inc.

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  

 

ELECTION TO EXERCISE

 

The

undersigned hereby exercises his or its rights to purchase

             

Warrant Shares covered by the within Warrant and tenders payment herewith in

accordance with the terms thereof, certifies that he owns this Warrant free and

clear of any and all claims, liens and/or encumbrances and requests that

certificates for such securities be issued in the name of, and delivered to:

 

	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

    (Print Name, Address and Social Security

  
	

   

  	

    or Tax Identification Number)

  

 

The undersigned

hereby elects to pay the Exercise Price (select one option):

 

o         By payment of cash, check or wire

transfer;  or

 

o         By Cashless Exercise (as calculated

pursuant to Section 2(a) of the Warrant).

 

If the number of

Warrant Shares purchased upon such exercise or surrendered in lieu of payment

of the Exercise Price shall not be all the Warrant Shares covered by the within

Warrant, that a new Warrant for the balance of the Warrant Shares covered by

the within Warrant be registered in the name of, and delivered to, the

undersigned at the address stated below.

 

All terms used and

not defined herein shall have their respective meanings as set forth under the

Warrant.

 

	

  Dated:

  	

   

  	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

  (Print)

  	

   

  
	

   

  
	

  Address:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  (Signature)

  	

   

  
									

 

B-8FIBERSTARS, INC

Exhibit

10.1

 

FIBERSTARS,

INC.

 

COMMON

STOCK AND WARRANT

 

PURCHASE

AGREEMENT

 

THIS COMMON STOCK AND WARRANT PURCHASE AGREEMENT (this

“Agreement”), dated March 29,

2002, is entered into by and among FIBERSTARS, INC., a California corporation

(the “Company”), and each Investor

identified at Schedule 1 hereto (each an “Investor,” and collectively, the “Investors”).

 

WHEREAS, the Company, upon the terms and conditions

set forth in this Agreement, proposes to issue and sell to each Investor

(i) such number of shares of Company common stock, no par value (the “Common Stock”), set forth opposite the name

of such Investor on the attached Schedule 1, for the aggregate purchase

price set forth opposite the name of the Investor on Schedule 1, and

(ii) a warrant to purchase, subject to the terms and conditions herein, up

to the aggregate number of shares Common Stock set forth opposite such

Investor’s name on the attached Schedule 2 at the per share

exercise price set forth opposite the name of each Investor on Schedule 2.

 

NOW, THEREFORE, in consideration of the mutual

covenants and agreements as set forth herein and for good and valuable

consideration, the receipt and adequacy of which are hereby acknowledged, the

parties hereto agree as follows:

 

1.             Definitions. 

For purposes of this Agreement, capitalized terms not otherwise defined

in this Agreement shall have the following meanings:

 

“Exchange Act”

means the Securities Exchange Act of 1934, as amended, or any similar successor

federal statute and the rules and regulations thereunder, all as the same shall

be in effect from time to time.

 

“Lien”

means, with respect to any asset, any mortgage, pledge, security interest,

encumbrance, lien or charge of any kind in respect of such asset.

 

“Material Adverse

Effect” means any change, violation, inaccuracy, circumstance or

effect that is materially adverse to the business, properties, assets

(including intangible assets), liabilities, capitalization or financial

condition of the Company and its Subsidiaries, taken as a whole; provided,

however that the following shall not be taken into account in determining

whether has been a Material Adverse Effect: 

(i) any occurrences relating to the economy of the United States in

general and (ii) changes in trading prices for the Company’s securities or

for securities in general.

 

“Person”

means an individual, a corporation, a limited liability company, a partnership,

an association, a trust or any other entity or organization, including a

government or political subdivision or any agency or instrumentality thereof.

 

 

“Securities Act”

means the Securities Act of 1933, as amended, or any similar successor federal

statute and the rules and regulations thereunder, all as the same shall be in

effect from time to time.

 

“Subsidiary” means a Person, whether incorporated or unincorporated, of which

(i) more than fifty percent (50%) of the securities or other ownership

interests or (ii) securities or other interests having by their terms

ordinary voting power to elect more than fifty percent (50%) of the board of

directors or others performing similar functions with respect to such

corporation or other organization, is directly owned or controlled by such

Person or by any one or more of its Subsidiaries.

 

“Related Agreements” means the Warrant in the form attached at Exhibit B

and Amendment No. 1 to the Rights Agreement attached at Exhibit D.

 

2.             Purchase

and Sale of Common Stock.

 

2.1           Sale and Issuance of Common Stock.  Subject to the terms and conditions set

forth in this Agreement, the Company agrees to sell and issue to each Investor

at the Closing (as defined below) and each Investor, severally and not jointly,

agrees to purchase at the Closing, such aggregate number of shares of Common

Stock (the “Shares”) as set forth

opposite such Investor’s name on Schedule 1.  As to each Investor, the Shares shall equal the quotient obtained

by dividing (x) the aggregate purchase price (the “Aggregate Purchase Price”) set forth

opposite that Investor’s name on Schedule 1, by (y) the Per Share

Purchase Price (as defined below), rounded to the nearest whole share.

 

2.2           Per Share Purchase Price.  The purchase price for each share of Common

Stock shall be, as to all Investors except John B. Stuppin, three dollars

($3.00) per share; and, as to Investor John B. Stuppin, only, the Per Share

Purchase Price shall be the greater of (x) $3.03 and (y) the sum of

the closing price of one share of Company Common Stock on the NASDAQ National

Market on the Closing Date, plus three cents ($0.03).

 

2.3           Closing.  The completion of the purchase and sale of

the Shares (the “Closing”) shall

take place at the offices of Pillsbury Winthrop LLP, 2550 Hanover Street, Palo

Alto, California at 3:30 p.m., local California time, on March 29, 2002, or at

such other time and place as the Company and the Investors mutually agree in

writing.  The date on which the Closing

takes place is referred to as the “Closing

Date.”  At the Closing, after

receipt of payment therefore, the Company shall deliver to each Investor a duly

executed and irrevocable letter of instruction addressed to the Company’s

transfer agent, pursuant to which such transfer agent is instructed to deliver

the Shares to such Investor in certificated form, each such certificate to be

registered in the name of the Investor or if so indicated on the Stock

Certificate Questionnaire attached hereto as Exhibit A, in the name

of a nominee designated by the Investor.

 

3.             Issuance of Warrants to Purchase

Common Stock.

 

3.1           Issuance of Warrants.  Subject to the terms and conditions of this Agreement,

the Company agrees to issue to each Investor a Warrant (the “Warrant”) to purchase shares of Common

Stock in such number and at such exercise price as set forth opposite the name

of such

 

2

 

Investor at Schedule 2

hereto, which number of shares and exercise price shall be determined

consistent with Sections 3.2 and 3.3 hereof.

 

3.2           Number.  The Company shall issue a Warrant to each

Investor to purchase such number of shares (such number being subject to

appropriate adjustment for stock splits, reverse stock dividends and the like

after the date hereof) of Common Stock as set forth opposite that Investor’s

name on Schedule 2, hereto, which number shall equal the product of

(x) the number of Shares being purchased by such Investor as set forth

opposite that Investor’s name on Schedule 1 hereto, multiplied by

(y) twenty one-hundredths (0.20), rounded to the nearest whole share (such

product being such Investor’s “Warrant

Shares.”)  All Warrants shall

be governed by the terms and conditions of a Warrant Agreement in the form

attached hereto at Exhibit B, and the Company’s issuance of a

Warrant to each Investor shall be contingent upon execution by such Investor of

the Warrant Agreement for the applicable Warrant Shares.

 

3.3           Warrant Exercise Price.  The exercise price for each share of Common

Stock issuable upon exercise of the Warrant (the “Warrant Share Exercise Price”) shall be four dollars and

thirty cents ($4.30).

 

3.4           Closing.  Completion of the purchase and sale of the

Warrants shall be concurrent with the Closing under Section 2.2, above.  At the Closing, and subject to each

Investor’s purchase of his designated Shares, the Company shall deliver to the

Investor a Warrant for the purchase of such number of Warrant Shares at the

Warrant Exercise Price set forth opposite such Investor’s name on Schedule 2.

 

4.             Representations, Warranties and

Agreements of the Company.  The Company hereby represents and warrants

to, and agrees with, each Investor that, except as otherwise disclosed in the

Company’s periodic reports on Form 10–Q for the quarters ended

March 31, 2001, June 30, 2001 and September 30, 2001, the

Company’s Annual Report on Form 10–K405A for the year ended

December 31, 2000, the Company’s proxy statement for its 2001 annual

meeting, the Company’s current reports on Form 8–K filed on

February 12, 2001 and September 21, 2001, the Company’s registration

of rights filed on Form 8–A on September 27, 2001, and the

Company’s registration statement  filed

on Form S–8 filed on August 31, 2001 (collectively the “SEC Documents”), in its Press Release of

February 28, 2002, or in the Schedule of Exceptions attached at Exhibit E

all of which qualify the following representations and warranties in their entirety:

 

4.1           Organization

and Qualification.  The Company has

been duly organized and is validly existing as a corporation in good standing

under the laws of the State of California. 

The Company has all requisite corporate power and authority to own,

lease and operate its properties and to carry on its business as currently

conducted.  The Company is qualified as

a foreign corporation and is in good standing in all states where the conduct

of its business or its ownership or leasing of property requires such

qualification, except where the failure to be so qualified would not have a

Material Adverse Effect on the Company.

 

4.2           Authorization.  All corporate action on the part of the

Company necessary for the authorization, execution and delivery of this Agreement,

the performance of all obligations of the Company hereunder and thereunder, and

the authorization, issuance and delivery of the Shares 

 

3

 

and Warrants has been taken or will be taken on or prior to the

Closing.  This Agreement constitutes a

legal, valid and binding agreement of the Company, enforceable against the

Company in accordance with its terms, except (a) as limited by applicable

bankruptcy, insolvency, reorganization, moratorium and other laws of general

application affecting the enforcement of creditors’ rights generally,

(b) as limited by laws relating to the availability of specific

performance, injunctive relief or other equitable remedies, and (c) to the

extent the indemnification provisions contained in this Agreement may be

limited by applicable federal or state securities laws.

 

4.3           Valid

Issuance.  The Shares, the Warrants

and the shares of Common Stock issuable upon exercise of the Warrants have been

duly authorized and, when issued, sold and delivered to the Investors after

payment therefore in accordance with the terms hereof, will be validly issued,

fully paid and nonassessable, and, assuming the accuracy of the representations

and warranties of the Investors set forth at Section 5.4 of this Agreement,

will be issued in compliance with all applicable federal and state securities

laws and will be free of all Liens or other encumbrances other than as set

forth in the legends contained in Section 5.5 of this Agreement.

 

4.4           Non-Contravention.  The execution, delivery and performance by

the Company of this Agreement and the consummation by the Company of the

transactions contemplated hereby do not and will not (a) contravene or

conflict with the articles of incorporation or by-laws of the Company,

(b) to the Company’s knowledge, contravene or conflict with or constitute

a violation of any provision of any law, regulation, judgment, injunction,

order or decree binding upon or applicable to the Company or any of its

Subsidiaries, (c) constitute a default under or give rise to a right of

termination, cancellation or acceleration of any right or obligation of the

Company or any of its Subsidiaries or to a loss of any benefit to which the

Company or any of its Subsidiaries is entitled under any provision of any

agreement, contract or other instrument binding upon the Company or any of its

Subsidiaries or any license, franchise, permit or other similar authorization

held by the Company or any of its Subsidiaries, or (d) result in the

creation or imposition of any Lien on any asset of the Company or any of its

Subsidiaries, except for such contraventions, conflicts or violations referred

to in clause (b) or defaults, rights of termination, cancellation or

acceleration, or losses or Liens referred to in clause (c) or (d) that

would, individually or in the aggregate, have a Material Adverse Effect on the

Company.

 

4.5           Governmental Consents.  No consent, approval, qualification, order

or authorization of, or filing with, any local, state or federal governmental

authority is required on the part of the Company in connection with the

Company’s valid execution, delivery or performance of this Agreement or the

offer, sale or issuance of the Shares or Warrants except any notices of sale

required to be filed with the Securities and Exchange Commission (“SEC”) under Regulation D of the Securities

Act, or such post-Closing filings as may be required under applicable state

securities laws, which will be timely filed within the applicable periods

therefor.

 

4.6           Litigation.  Except as disclosed in the SEC Documents,

there is no action, suit or proceeding before or by any court or government

agency or body, domestic or foreign, now pending, or, to the knowledge of the

Company, threatened against or adversely affecting the Company that would

result in any material adverse change in the business, properties, results of 

 

 

4

 

operations or financial condition of the Company, or materially and

adversely affect the consummation of the transactions contemplated by this

Agreement.

 

4.7           SEC Filings and Financial

Statements.  The financial

statements included in the SEC Documents are hereafter collectively referred to

as the “Financial Statements.”  The balance sheet contained in the Company’s

quarterly report on Form 10-Q for the quarter ended September 30, 2001

shall be referred herein as the “Company

Balance Sheet” and the date of such balance sheet shall be referred

to herein as the “Company Balance Sheet Date.”  Each of the balance sheets included in the

Financial Statements (including any related notes and schedules) presents

fairly the financial position of the Company as of its date, and the other

financial statements included in the Financial Statements (including any related

notes and schedules) present fairly the results of operations or other

information included therein of the Company for the periods or as of the dates

therein set forth (subject, in the case of interim financial statements, to

normal year-end adjustments), and each of the Financial Statements was prepared

in accordance with generally accepted accounting principles consistently

applied during the periods involved (except as otherwise stated therein and

except that interim financial statements may not contain all footnotes required

by generally accepted accounting principles). 

The Company has filed all reports required to be filed by it since the

Company Balance Sheet Date pursuant to the reporting requirements of the Exchange

Act.  None of the documents filed with

the SEC and referred to in this Section 4.7 contained, as of its date, any

untrue statement of a material fact or omitted to state a material fact

required to be stated therein or necessary in order to make the statements

therein, in the light of the circumstances under which they were made, not

misleading.

 

4.8           No

Material Adverse Change.  Since the

Company Balance Sheet Date, except as set forth in the Company’s SEC Documents

(a) there has been no material adverse change in the business, properties,

results of operations or financial condition of the Company, whether or not

arising in the ordinary course of business, and (b) there has been no

dividend or distribution of any kind declared, paid or made by the Company on

any class of its capital stock.  Since

the Company Balance Sheet Date until the date of this Agreement, except as set

forth in the Company’s SEC Documents filed with the SEC on or prior to the date

of this Agreement, there have been no material transactions entered into by the

Company that have not arisen in the ordinary course of business.

 

4.9           Access

to Information.  Prior to the

Closing, the Company will provide to the Investor, its officers, employees and

professional representatives such information as such persons from time to time

may reasonably request with respect to the Company and the transactions

contemplated by this Agreement, and prior to the Closing shall permit the

Investor, its officers, employees and professional representatives reasonable

access, during regular business hours and upon reasonable notice, to the

properties, books and records of the Company as the Investor from time to time

may reasonably request.

 

4.10         Registration

Rights.  In addition to Section 6.1

of this Agreement, the Company has granted registration rights, including

demand and piggyback registration rights, to the holders of approximately

1,489,000 shares of Company Common Stock.

 

5

 

4.11         Capitalization.  The authorized capital stock of consists of

30,000,000 shares of Common Stock and 2,000,000 of shares of preferred stock

(the “Preferred Stock”), of which

100,000 have been designated as Series A Participating Preferred

Stock.  As of September 30, 2001

(i) 4,321,326 shares of Company Common Stock were issued and outstanding,

and (ii) no shares of Preferred Stock were issued and outstanding.  As of December 31, 2001, the Company

had outstanding warrants to purchase up to approximately 1,100,000 shares of

Company Common Stock.  The Company has

reserved approximately 1,995,750 shares of Company Common Stock for issuance

under its employee equity incentive plans, of which approximately 1,632,000

were outstanding as of December 31, 2001. 

Since September 30, 2001, until the date of this Agreement, the

Company has not issued any shares of its capital stock or any voting securities

(including options, debt or similar rights and obligations convertible or

exchangeable for capital stock or voting securities of the Company) other than

pursuant to Company’s equity incentive plans, all of which has been filed on or

prior to the date of this Agreement with the SEC and are identified in the SEC

Documents.  All of the outstanding

shares of the Company’s capital stock are, and all shares of the Company Common

Stock that may be issued pursuant to the exercise of outstanding employee stock

options and convertible securities will be, when issued in accordance with the

terms thereof, duly authorized, validly issued, fully paid and non-assessable.  There are not as of the date hereof any

stockholder agreements, voting trusts or other agreements or understandings to

which the Company or any of its Subsidiaries is a party or by which it is bound

relating to the voting of any shares of the capital stock of the Company or any

agreements, arrange­ments, or other understandings to which the Company or any

of its Subsidiaries is a party or by which it is bound that will limit the

issuance of the Shares, the Warrant, or the Warrant Shares issuable upon

exercise of the Warrant.

 

4.12         Offering.  Neither the Company nor any Person acting on

its behalf authorized by the Company to act on its behalf has engaged in a

general solicitation of investors (including without limitation by way of

advertisement) with respect to the Shares or the Warrants.

 

5.             Representations and Warranties

of the Investor.  Each Investor except as to Section 0 below, hereby

represents and warrants to the Company and as to Section 5.9 Investor Trigran,

Investments L.P. (“Trigran”)

further warrants that:

 

5.1           Authorization.  The Investor has all requisite power and

authority to enter into the transactions contemplated by this Agreement and

that this Agreement constitutes a valid and legally binding obligation of the

Investor except (a) as limited by applicable bankruptcy, insolvency,

reorganization, moratorium and other laws of general application affecting the

enforcement of creditors’ rights generally, (b) as limited by laws

relating to the availability of specific performance, injunctive relief or

other equitable remedies, and (c)to the extent the indemnification provisions

contained in this Agreement may be limited by applicable federal or state

securities laws.

 

5.2           Purchase

Entirely for Own Account.  The

Shares, Warrant and Common Stock issuable upon exercise of the Warrant to be

purchased by the Investor will be acquired for investment for the Investor’s

own account, and not as a nominee or agent, and not with a view to the resale

or distribution of any part thereof; provided, however, that by making the

representations herein, the Investor does not agree to hold such securities for

any minimum or other specific term and reserves the right to dispose of any of

such securities at any time in 

 

6

 

accordance with or pursuant to a registration statement or an exemption

under the Securities Act.  The Investor

is not a party to any contract, undertaking, agreement or arrangement with any

person to sell, transfer or otherwise dispose of any of the Shares purchased by

it.

 

5.3           Reliance

Upon Investor’s Representations. 

The Investor understands that the issuance and sale of the Shares,

Warrant, and Common Stock issuable upon exercise of the Warrant will not be

registered under the Securities Act on the ground that such issuance and sale

will be exempt from registration under the Securities Act pursuant to

Rule 506 of Regulation D and/or section 4(2) thereof, and that the

Company’s reliance on such exemption is based on each Investor’s

representations set forth herein.

 

5.4           Receipt of Information.  The Investor has had an opportunity to ask

questions and receive answers from the Company regarding the terms and

conditions of the issuance and sale of the Shares, Warrant, and Common Stock

issuable upon exercise of the Warrant and the business, properties, prospects

and financial condition of the Company and to obtain additional information (to

the extent the Company possessed such information or could acquire it without

unreasonable effort or expense) necessary to verify the accuracy of any

information furnished to it or to which it had access.  The foregoing, however, does not limit or

modify the representations and warranties of the Company in Section 4 of this

Agreement or the right of the Investor to rely thereon. No person other that

the Company has been authorized to give any information or to give any

representation not contained in this Agreement in connection with the Offering

and, if given or made, such information or representation must not be relied

upon as having been authorized by the Company.

 

5.5           Investment Experience.  The Investor is experienced in evaluating

and investing in securities of companies and acknowledges that it is able to

fend for itself, can bear the economic risk of its investment, and has such

knowledge and experience in financial and business matters that it is capable

of evaluating the merits and risks of the investment in the Shares.

 

5.6           Accredited

Investor.  The Investor is an “accredited investor” as such term is

defined in Rule 501 of Regulation D promulgated under the Securities Act.

 

5.7           Restricted

Securities.  The Investor

understands that the Shares may not be sold, transferred or otherwise disposed

of without registration under the Securities Act or an exemption therefrom, and

that in the absence of an effective registration statement covering the Shares

or an available exemption from registration under the Securities Act, the

Shares must be held indefinitely.  In

particular, the Investor is aware that the Shares may not be sold pursuant to

Rule 144 promulgated under the Securities Act unless all of the conditions

of that Rule are met.  Among the

conditions for use of Rule 144 is the availability of current information

to the public about the Company.

 

5.8           Legends.  Each certificate or other document

evidencing any of the Shares, Warrants, and Common Shares issuable upon

execution of the Warrant shall be endorsed with the legends set forth below,

and the Investor covenants that, except to the extent such restrictions are

waived by the Company, the Investor shall not transfer the shares represented

by any such 

 

7

 

certificate without

complying with the restrictions on transfer described in the legends endorsed

on such certificate:

 

(i)            The

following legend under the Act:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE

NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,

OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, OFFERED FOR SALE,

ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A

REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT

OR AN OPINION OF COUNSEL OR UPON EVIDENCE REASONABLY SATISFACTORY TO

FIBERSTARS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT

TO RULE 144 OF SUCH ACT OR ANOTHER APPLICABLE EXEMPTION.”

 

(ii)           Such

other legends as may be required under state securities laws.

 

5.9           Beneficial Ownership.  Immediately prior to the Closing, the number

of shares of Company Common Stock beneficially owned by Trigran does not exceed

431,182.

 

6.             Registration

Rights.

 

6.1           Certain Definitions.  As used in this Section 6, the following

terms shall have the meanings set forth below:

 

(a)           “Commission” shall mean the Securities and

Exchange Commission or any other federal agency at the time administering the

Securities Act.

 

(b)           “Holder” shall mean any Investor who holds

Registrable Securities and any holder of Registrable Securities to whom the

registration rights conferred by this Agreement have been transferred in

compliance with Section 6.11 hereof.

 

(c)           “Investors” shall mean persons who purchased

Shares pursuant to the Series One Agreement.

 

(d)           “Other Stockholders” shall mean persons

other than Holders who, by virtue of agreements with the Company, are entitled

to include their securities in certain registrations hereunder.

 

(e)           “Registrable Securities” shall mean

(i) Shares issued pursuant to this Agreement, (ii) shares of Common

Stock issued or issuable upon exercise of Warrants acquired pursuant to this

Agreement, and (iii) any Common Stock issued as a dividend or other

distribution with respect to or in exchange for or in replacement of the shares

referenced in (i) and (ii) above; provided, however, that Registrable

Securities shall not include any shares of Common Stock which have previously

been registered or which have been sold to the public.  Notwithstanding the foregoing, Registrable

Securities shall not include shares held by any holder 

 

8

 

of less than one percent (1%) of the outstanding Common Stock of the

Company if such shares are available for sale pursuant to Rule 144.

 

(f)            The

terms “register,” “registered” and “registration” shall refer to a registration effected by

preparing and filing a registration statement in compliance with the Securities

Act and applicable rules and regulations thereunder, and the declaration or

ordering of the effectiveness of such registration statement.

 

(g)           “Registration Expenses” shall mean all expenses

incurred in effecting any registration pursuant to this Agreement, including,

without limitation, all registration, qualification, and filing fees, printing

expenses, escrow fees, fees and disbursements of counsel for the Company, blue

sky fees and expenses, and expenses of any regular or special audits incident

to or required by any such registration, but shall not include Selling

Expenses.

 

(h)           “Rule 144” shall mean Rule 144 as

promulgated by the Commission under the Securities Act, as such Rule may be

amended from time to time, or any similar successor rule that may be

promulgated by the Commission.

 

(i)            “Rule 145” shall mean Rule 145 as

promulgated by the Commission under the Securities Act, as such Rule may be

amended from time to time, or any similar successor rule that may be

promulgated by the Commission.

 

(j)            “Selling Expenses” shall mean all

underwriting discounts and selling commissions applicable to the sale of

Registrable Securities and fees and disbursements of counsel for any selling Holder.

 

6.2           Company Registration.

 

(a)           If

the Company shall determine to register any of its securities either for its

own account or the account of a security holder or holders exercising demand

registration rights, other than a registration relating solely to employee

benefit plans, or a registration relating solely to a Rule 145 transaction, or

a registration on any registration form that does not permit secondary sales,

the Company will:

 

(i)            promptly give to each Holder written

notice thereof; and

 

(ii)           use

its best efforts to include in such registration (and any related qualification

under blue sky laws or other compliance), except as set forth in Section 6.2(b)

hereof, and in any underwriting involved therein, all the Registrable

Securities specified in a written request or requests, made by any Holder and

received by the Company within twenty (20) days after the written notice

from the Company described in clause (i) above is mailed or delivered by

the Company.  Such written request may

specify all or a part of a Holder’s Registrable Securities.

 

(b)           Underwriting.  If the registration of which the Company

gives notice is for a registered public offering involving an underwriting, the

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

pursuant to Section 6.2(a)(i) hereof. 

In such event, the right of any Holder to registration pursuant to this

Section 6.2(a)(i) shall be conditioned upon such Holder’s  

 

9

 

participation in such

underwriting and the inclusion of such Holder’s Registrable Securities in the

underwriting to the extent provided herein. 

All Holders proposing to distribute their securities through such

underwriting shall (together with the Company and the Other Stockholders

distributing their securities through such underwriting) enter into an

underwriting agreement in customary form with the representative of the

underwriter or underwriters selected by the Company.

 

Notwithstanding any other provision of this Section

6.2, if the representative of the underwriters advises the Company in writing,

and the Company’s Board of Directors determines, that marketing factors require

a limitation on the number of shares to be underwritten, the representative may

(subject to the limitations set forth below) limit or exclude the number of

Registrable Securities to be included in the registration and

underwriting.  The Company shall so

advise all holders of securities requesting registration, and the number of

shares of securities that are entitled to be included in the registration and

underwriting shall be allocated first to the Company for securities being sold

for its own account and thereafter as set forth in Section 6.9.  If any person does not agree to the terms of

any such underwriting, he shall be excluded therefrom by written notice from

the Company or the underwriter.  Any

Registrable Securities or other securities excluded or withdrawn from such

underwriting shall be withdrawn from such registration.

 

If shares are so withdrawn from the registration and

if the number of shares of Registrable Securities to be included in such

registration was previously reduced as a result of marketing factors, the

Company shall then offer to all persons who have retained the right to include

securities in the registration the right to include additional securities in

the registration in an aggregate amount equal to the number of shares so

withdrawn, with such shares to be allocated among the persons requesting

additional inclusion in accordance with Section 6.9 hereof.

 

6.3           Expenses

of Registration.  All Registration

Expenses incurred in connection with any registration pursuant to Section 6.2

hereof, shall be borne by the Company.

 

6.4           Registration

Procedures.  In the case of each

registration effected by the Company pursuant to Section 6, the Company will

keep each Holder advised in writing as to the initiation of each registration

and as to the completion thereof.  At

its expense, the Company will use its best efforts to:

 

(a)           Keep

such registration effective for a period of one hundred twenty (120) days

or until the Holder or Holders have completed the distribution described in the

registration statement relating thereto, whichever first occurs; provided,

however, that such one hundred twenty (120) day period shall be extended

for a period of time equal to the period the Holder refrains from selling any

securities included in such registration at the request of an underwriter of

Common Stock (or other securities) of the Company.

 

(b)           Prepare

and file with the Commission such amendments and supplements to such

registration statement and the prospectus used in connection with such

registration statement as may be necessary to comply with the provisions of the

Securities Act with respect to the disposition of all securities covered by

such registration statement;

 

10

 

(c)           Furnish

such number of prospectuses and other documents incident thereto, including any

amendment of or supplement to the prospectus, as a Holder or Underwriter from

time to time may reasonably request in order to facilitate the public offering

of such securities;

 

(d)           Notify

each seller of Registrable Securities covered by such registration statement 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 a material fact

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

misleading or incomplete in the light of the circumstances then existing, and

at the request of any such seller, prepare and furnish to such seller 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 shares, 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 or

incomplete in the light of the circumstances then existing;

 

(e)           Cause

all such Registrable Securities registered pursuant hereunder to be listed on

each securities exchange on which similar securities issued by the Company are

then listed;

 

(f)            Provide

a transfer agent and registrar for all Registrable Securities registered

pursuant to such registration statement and a CUSIP number for all such

Registrable Securities, in each case not later than the effective date of such

registration; and

 

(g)           Enter

into an underwriting agreement reasonably necessary to effect the offer and

sale of Common Stock, provided such underwriting agreement contains customary

underwriting provisions and provided further that if the underwriter so

requests the underwriting agreement will contain customary contribution

provisions.

 

6.5           Indemnification.

 

(a)           To

the extent permitted by law, the Company will indemnify each Holder, each of its

officers, directors, members and partners, legal counsel, and accountants and

each person controlling such Holder within the meaning of section 15 of the

Securities Act, on behalf of which registration, qualification, or compliance

has been effected pursuant to this Section 6, and each underwriter, if any, and

each person who controls within the meaning of section 15 of the Securities Act

any underwriter, against all expenses, claims, losses, damages, and liabilities

(or actions, proceedings, or settlements in respect thereof) arising out of or

based on any untrue statement (or alleged untrue statement) of a material fact

contained in any prospectus, offering circular, or other document (including

any related registration statement, notification, or the like) incident to any

such registration, qualification, or compliance, or based on 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, or any

violation by the Company of the Securities Act, the Exchange Act, any state

securities laws or any rule or regulation thereunder applicable to the Company

and relating to action or inaction required of the Company in connection with

any such registration, qualification, or compliance, and will reimburse each

such Holder, each of

 

11

 

 its officers, directors,

members, partners, legal counsel, and accountants and each person controlling

such Holder, each such underwriter, and each person who controls any such

underwriter, for any legal and any other expenses reasonably incurred in

connection with investigating and defending or settling any such claim, loss,

damage, liability, or action, provided that the Company will not be liable in

any such case to the extent that any such claim, loss, damage, liability, or

expense arises out of or is based on any untrue statement or omission based

upon written information furnished to the Company by such Holder or underwriter

and stated to be specifically for use therein or the failure by such Holder to

deliver a prospectus to the buyer.  It

is agreed that the indemnity agreement contained in this Section 6.5 shall not

apply to amounts paid in settlement of any such loss, claim, damage, liability,

or action if such settlement is effected without the consent of the Company

(which consent shall not be unreasonably withheld).

 

(b)           To

the extent permitted by law, each Holder will, if Registrable Securities held

by him are included in the securities as to which such registration,

qualification, or compliance is being effected, indemnify the Company, each of

its directors, officers, partners, legal counsel, and accountants and each

underwriter, if any, of the Company’s securities covered by such a registration

statement, each person who controls the Company or such underwriter within the

meaning of section 15 of the Securities Act, each other such Holder and Other

Stockholder, and each of their officers, directors, and partners, and each

person controlling such Holder or Other Stockholder, against all claims,

losses, damages and liabilities (or actions in respect thereof) arising out of

or based on any untrue statement (or alleged untrue statement) of a material

fact contained in any such registration statement, prospectus, offering

circular, or other document, 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, or the failure to deliver a prospectus to

the buyer, and will reimburse the Company and such Holders, Other Stockholders,

directors, officers, partners, legal counsel, and accountants, persons,

underwriters, or control persons for any legal and any other expenses

reasonably incurred in connection with investigating or defending any such

claim, loss, damage, liability, or action, in each case to the extent, but only

to the extent, that such untrue statement (or alleged untrue statement) or

omission (or alleged omission) is made in such registration statement,

prospectus, offering circular, or other document in reliance upon and in

conformity with written information furnished to the Company by such Holder and

stated to be specifically for use therein provided, however, that the obligations

of such Holder hereunder shall not apply to amounts paid in settlement of any

such claims, losses, damages, or liabilities (or actions in respect thereof) if

such settlement is effected without the consent of such Holder (which consent

shall not be unreasonably withheld); provided further that in no event shall

any indemnity under this subsection (b) exceed the net proceeds from the

offering received by such Holder, except in the case of willful fraud by such

Holder.

 

(c)           Each

party entitled to indemnification under this Section 6.5 (the “Indemnified

Party”) shall give notice to the party required to provide indemnification (the

“Indemnifying Party”) promptly after such Indemnified Party has actual

knowledge of any claim as to which indemnity may be sought, and shall permit

the Indemnifying Party to assume the defense of such claim or any litigation

resulting therefrom, provided that counsel for the Indemnifying Party, who

shall conduct the defense of such claim or any litigation resulting therefrom,

shall be approved by the Indemnified Party (whose approval shall not

unreasonably 

 

12

 

be withheld), and the Indemnified Party may participate in such defense

at such party’s expense, and provided further that the failure of any

Indemnified Party to give notice as provided herein shall not relieve the

Indemnifying Party of its obligations under this  Section 6, to the extent such failure is not prejudicial.  No Indemnifying Party, in the defense of any

such claim or litigation, shall, except with the consent of each Indemnified

Party, consent to entry of any judgment or enter into any settlement that does

not include as an unconditional term thereof the giving by the claimant or

plaintiff to such Indemnified Party of a release from all liability in respect

to such claim or litigation.  Each

Indemnified Party shall furnish such information regarding itself or the claim

in question as an Indemnifying Party may reasonably request in writing and as

shall be reasonably required in connection with defense of such claim and

litigation resulting therefrom.

 

(d)           If

the indemnification provided for in this Section 6.5 is held by a court of

competent jurisdiction to be unavailable to an Indemnified Party with respect

to any loss, liability, claim, damage, or expense referred to therein, then the

Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder,

shall contribute to the amount paid or payable by such Indemnified Party as a

result of such loss, liability, claim, damage, or expense in such proportion as

is appropriate to reflect the relative fault of the Indemnifying Party on the

one hand and of the Indemnified Party on the other in connection with the

statements or omissions that resulted in such loss, liability, claim, damage,

or expense as well as any other relevant equitable considerations.  The relative fault of the Indemnifying Party

and of the Indemnified Party shall be determined by reference to, among other things,

whether the untrue or alleged untrue statement of a material fact or the

omission to state a material fact relates to information supplied by the

Indemnifying Party or by the Indemnified Party and the parties’ relative

intent, knowledge, access to information, and opportunity to correct or prevent

such statement or omission.

 

(e)           Notwithstanding

the foregoing, to the extent that the provisions on indemnification and

contribution contained in the underwriting agreement entered into in connection

with the underwritten public offering are in conflict with the foregoing

provisions, the provisions in the underwriting agreement shall control.

 

6.6           Information

by Holder.  Each Holder of

Registrable Securities shall furnish to the Company such information regarding

such Holder and the distribution proposed by such Holder as the Company may

reasonably request in writing and as shall be reasonably required in connection

with any registration, qualification, or compliance referred to in this Section

6.

 

6.7           Rule

144 Reporting.  With a view to

making available the benefits of certain rules and regulations of the

Commission that may permit the sale of the Registrable Securities to the public

without registration, the Company agrees to use its best efforts to:

 

(a)           Make

and keep public information regarding the Company available as those terms are

understood and defined in Rule 144 under the Securities Act, at all times it

remains subject to the reporting requirements of the Securities Act;

 

(b)           File

with the Commission in a timely manner all reports and other documents required

of the Company under the Securities Act and the Exchange Act at any time it

remains subject to such reporting requirements;

 

13

 

(c)           So

long as a Holder owns any Registrable Securities, furnish to the Holder

forthwith upon written request a written statement by the Company as to its

compliance with the reporting requirements of Rule 144 and of the Securities

Act and the Exchange Act (at any time after it has become subject to such reporting

requirements), a copy of the most recent annual or quarterly report of the

Company, and such other reports and documents so filed as a Holder may

reasonably request in availing itself of any rule or regulation of the

Commission allowing a Holder to sell any such securities without registration.

 

6.8           Transfer

or Assignment of Registration Rights. 

The rights to register securities granted to a Holder by the Company

under this Section 6 may be transferred or assigned by a Holder provided that

the Company is given written notice at the time of or within a reasonable time

after such transfer or assignment, stating the name and address of the

transferee or assignee and identifying the securities with respect to which

such registration rights are being transferred or assigned, and, provided

further, that (i) the transferee or assignee of such rights assumes the

obligations of such Holder under this Agreement in a writing delivered to the

Company and (ii) the transferor assignment is made consistent with Section

8.2, hereof.

 

6.9           Allocation of Registration

Opportunities.  In any circumstance

in which all of the Registrable Securities and other shares of Common Stock of

the Company (including shares of Common Stock issued or issuable upon

conversion of shares of any currently unissued series of Preferred Stock of the

Company) with registration rights (the “Other

Shares”) requested to be included in a registration on behalf of the

Holders or other stockholders cannot be so included as a result of limitations

of the aggregate number of shares of Registrable Securities and Other Shares

that may be so included, the number of shares of Registrable Securities and

Other Shares that may be so included shall be allocated, subject to such

superior registration rights, if any, granted prior to the date hereof, among

the Holders of Registrable Securites and stockholders of Other Shares

requesting inclusion of shares pro rata on the basis of the number of shares of

Registrable Securities and Other Shares requested to be included.  The Company shall not limit the number of

Registrable Securities to be included in a registration pursuant to this

Agreement in order to include shares held by stockholders with no registration

rights.  To facilitate the allocation of

shares in accordance with the above provisions, the Company or the Underwriters

may round the number of Shares allocated to any Holder to the nearest 100

shares.

 

6.10         Delay

of Registration.  No Holder shall

have any right to take any action to restrain, enjoin, or otherwise delay any

registration as the result of any controversy that might arise with respect to

the interpretation or implementation of this Section 6.

 

6.11         Termination of Registration Rights.  The right of any Holder to request

registration or inclusion in any registration pursuant to this Section 6 hereof

shall terminate at such time that all shares of Registrable Securities held or

entitled to be held upon conversion by such Holder may immediately be sold

under Rule 144 during any ninety (90) day period.  Notwithstanding the foregoing, if not

already expired, all rights under this Section 6 shall expire on the earlier of

(i) the fifth anniversary of the Closing and (ii) the closing of an

acquisition of the Registrable Securities in exchange for publicly traded stock

(i.e., stock that has been registered under the Securities Act for issuance to

such Holder and is listed on a national securities exchange or Nasdaq) of

another entity.

 

14

 

7.             Restrictions

on Transferability.

 

7.1           General Restrictions.

 

(a)           The

Shares, Registrable Securities and any other securities issued in respect of

the Registrable Securities upon any stock split, stock dividend,

recapitalization, merger, consolidation or similar event shall not be sold,

assigned, transferred or pledged except upon the conditions specified in this

Agreement, which conditions are intended to ensure compliance with the

provisions of the Securities Act; provided, however, that, notwithstanding

anything to the contrary herein, a Holder may at any time and from time to time

transfer the Shares or its Registrable Securities in whole or in part to its

partners, members, affiliates, or a trust, partnership, limited liability

company or other entity controlled by (or for the benefit of) such Holder or

his or her spouse, parents, sibling, parents, former spouse, and/or

children.  The Holders will cause any

proposed purchaser, assignee, transferee, or pledgee of any such shares held by

the Holders (the “Transferee”)

that is not a party to this Agreement to execute and deliver to the Secretary

of the Company a written agreement, pursuant to which such Transferee shall

agree to take and hold such securities subject to the provisions and upon the

conditions specified in this Agreement.

 

(b)           Each

certificate representing the Shares, Registrable Securities and any other

securities issued in respect of the Shares or Registrable Securities upon any

stock split, stock dividend, recapitalization, merger, consolidation or similar

event, shall (unless otherwise permitted by the provisions of clause

(c) below) be stamped or otherwise imprinted with appropriate restrictive

legends as set forth in Section 5.8 hereof. 

Each Holder consents to the Company making a notation on its records and

giving instructions or stop transfer or other appropriate orders to any

transfer agent of the Preferred Stock or the Common Stock in order to implement

the restrictions on transfer established in this Agreement.

 

(c)           The

Holder of each certificate representing Registrable Securities by acceptance

thereof agrees to comply in all respects with the provisions of this Section

7.1.  Prior to any proposed sale,

assignment, transfer or pledge (each, a “Transfer”)

of any such Shares and/or Registrable Securities (other than (i) a

transfer not involving a change in beneficial ownership, (ii) in

transactions involving the distribution without consideration of Registrable

Securities by an Investor to any of its direct or indirect members, partners,

retired members or retired partners, or to the estate of any of its direct or

indirect members, partners, retired members or retired partners, (iii) in

transactions involving the transfer without consideration of Registrable

Securities by the Investor during his lifetime by way of gift or on death by

will or intestacy or for tax or estate planning purposes, (iv) in

transactions involving the transfer or distribution of Registrable Securities

by a corporation or limited liability company to any subsidiary, parent or

affiliated corporation or limited liability company of such corporation or

limited liability company, or (v) in transactions in compliance with Rule

144(k)), unless there is in effect a registration statement under the

Securities Act covering the proposed Transfer, the Holder shall give written

notice to the Company of such Holder’s intention to effect such Transfer.  Each such notice shall describe the manner

and circumstances of the proposed Transfer in sufficient detail, and shall be

accompanied, at such Holder’s expense, by either (A) an unqualified

written opinion of legal counsel who shall be, and whose legal opinion shall

be, reasonably satisfactory to the Company addressed to the Company, or other

evidence

 

15

 

reasonably satisfactory to the Company, to the effect that the proposed

Transfer of the Registrable Securities may be effected without registration

under the Securities Act, or (B) a “no action” letter from the Commission

to the effect that the Transfer of such securities without registration will

not result in a recommendation by the staff of the Commission that action be

taken with respect thereto, whereupon the Holder shall be entitled to transfer

such Registrable Securities in accordance with the terms of the notice

delivered by the Holder to the Company.

 

(d)           Not

later than fifteen (15) business days following the date of any Transfer

as to which prior notice is not required pursuant to this Section 7.1, the

transferor of the Registrable Securities shall deliver to the Secretary of the

Company written notification of such Transfer setting forth the name of the

transferor, name and address of the Transferee and the number of Registrable

Securities which have been so transferred. 

Additionally, the transferor shall deliver an Assignment and Assumption

Agreement duly executed by the Transferor with such notice.  Each certificate evidencing the Registrable

Securities transferred as above provided shall bear, except if such Transfer is

made pursuant to Rule 144, the appropriate restrictive legends, except that

such certificate shall not bear such restrictive legend if, in the opinion of

counsel for such Holder and the Company, such legends are not required in order

to establish compliance with any provision of the Securities Act.

 

8.             Conditions

to Closing.

 

8.1           Mutual

Conditions.  The obligations of the

Company and of the Investor under Sections 2.1 and 3.1 of this Agreement are

each subject to the fulfillment on or before the Closing of each of the

following conditions, any of which may, to the extent legally permissible, be

waived in writing in whole or in part by each party:

 

(a)           Litigation.  No order enjoining or restraining the

transactions contemplated by this Agreement shall be in effect and no action or

proceeding before any federal or state court or governmental agency or other

regulatory or administrative agency or instrumentality shall have been

instituted or pending that challenges the acquisition of the Shares, Warrant,

or Warrant Shares by the Investor or otherwise seeks to restrain or prohibit

consummation of the transactions contemplated by this Agreement or seeking to

impose any material limitations on any provisions of this Agreement.

 

(b)           Governmental

Approvals.  The Company and Investor

shall have received any necessary approvals, authorizations, permits or

consents under applicable laws and regulations (foreign or domestic) to

consummate and make effective the transactions contemplated by this Agreement.

 

(c)           Waiver

of Participation of ADLT.  The Company

shall have obtained from Advanced Lighting Technologies, Inc. (“ADLT”) waiver of its right to acquire

Shares or Warrants under this Agreement, and such waiver shall not have been

revoked as of Closing.

 

8.2           Conditions of the Investor’s

Obligations at the Closing.  The

obligations of the Investor under Sections 2.1 and 3.1 of this Agreement are

subject to the fulfillment on or before the Closing of each of the following

conditions, any of which may be waived in writing in whole or in part by the

Investor:

 

16

 

(a)           Representations and Warranties.  The representations and warranties of the

Company contained in Section 4 shall be true on and as of the Closing with the

same effect as though such representations and warranties had been made on and

as of the Closing Date (provided that any such representation and warranty made

as of a specific date shall be true and correct as of such specific date).

 

(b)           Performance.  The Company shall have performed and complied

with all agreements, obligations and conditions contained in this Agreement

that are required to be performed or complied with by it on or before the

Closing.

 

(c)           Compliance

Certificate.  The Chief Executive

Officer, President, Chief Financial Officer or Treasurer of the Company shall

deliver to the Investor at the Closing a certificate certifying that the

conditions specified in Sections 8.2(a), (b) and (d) have been fulfilled.

 

(d)           No Material Adverse Effect.  No Material Adverse Effect shall have occurred

with respect to the Company.

 

(e)           Stock

Certificates.  The Company shall

have delivered to the Investor a duly executed and irrevocable letter of

instruction addressed to the Company’s transfer agent, pursuant to which such

transfer agent is instructed to deliver the Shares to the Investor in

certificated form.

 

(f)            Opinion

of Counsel.  Each Investor shall

have received the opinion of Pillsbury Winthrop LLP, counsel to the Company,

substantially in the form of Exhibit C subject to such exceptions

and qualifications reasonably acceptable to such Investor.

 

8.3           Conditions

of the Company’s Obligations at the Closing.  The obligations of the Company to the Investor under this

Agreement are subject to the fulfillment on or before the Closing of each of

the following conditions by the Investor, any of which may be waived in writing

in whole or in part by the Company:

 

(a)           Related Agreements.  The Investor shall have delivered to the

Company signature pages to this Agreement and the Related Agreements (except Amendment

No. 1 to the Rights Agreement) duly executed by the Investor at the Closing.

 

(b)           Representations

and Warranties.  The representations

and warranties of the Investor contained in Section 5 shall be true on and as

of the Closing with the same effect as though such representations and

warranties had been made on and as of the date of the Closing.

 

(c)           Compliance

Certificate.  The Investor, or

Managing Partner, Chief Executive Officer, President or Chief Financial Officer

of the Investor, as applicable, shall have delivered to the Company at the

Closing a certificate certifying that the conditions specified in Sections

8.3(a) and (b) have been fulfilled.

 

17

 

9.             Miscellaneous.

 

9.1           Reasonable

Efforts; Other Actions.  Subject to

the terms and conditions herein provided and applicable law, the Company and

Investor shall use all commercially reasonable efforts promptly to take, or

cause to be taken, all other actions and do, or cause to be done, all other things

necessary, proper or appropriate under applicable laws and regulations to

consummate and make effective the transactions contemplated by this Agreement.

 

9.2           Successors

and Assigns.  The terms and

conditions of this Agreement shall inure to the benefit of and be binding upon

the respective successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to

confer upon any party other than the parties hereto or their respective successors

and assigns any rights, remedies, obligations, or liabilities under or by

reason of this Agreement, except as expressly provided in this Agreement.  Neither the Company nor the Investor shall

assign this Agreement or any rights hereunder or delegate any duties hereunder

without the prior written consent of the other (which consent may not be

unreasonably withheld from whom consent is sought) except as otherwise provided

herein.

 

9.3           Notices.  Unless otherwise provided, any notice,

request, demand or other communication 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 when sent by Facsimile (with

receipt confirmed and promptly confirmed by personal delivery, U.S. first class

mail, or courier), or overnight courier service, or upon deposit with the

United States Post Office, by registered or certified mail, postage prepaid and

addressed as follows (or at such other address as a party may designate by

notice to the other):

 

If to the Company:

 

Fiberstars, Inc.

44259 Nobel Drive

Fremont California 94538

Attention: 

David N. Ruckert, CEO

Facsimile: 

(510) 490-0947

Telephone: 

(650) 490-0719

 

with a copy to:

 

Pillsbury Winthrop LLP

2550 Hanover Street

Palo Alto, California 94304

Attention: 

Richard Bebb

Facsimile: 

(650) 233-4545

Telephone: 

(650) 233-4500

 

If to the Investor:

 

See the address provided by the Investor on its

counter-part signature page.

 

18

 

9.4           Survival.  All representations and warranties contained

or provided for herein shall remain operative and in full force and effect

regardless of any investigation made by or on behalf of the party benefiting

from any such representation or warranty, and shall survive the Closing to the

extent of applicable statutes of limitations; provided, however, that the

representations and warranties in Sections 4 and 5 of this Agreement shall not

be construed so as to constitute representations and warranties concerning

circumstances existing after any date specifically referred to therein, or the

Closing Date, as the case may be.

 

9.5           Finders or Brokers.  Each Investor represents that it has not

engaged any investment banker, finder or broker, and neither is nor will be

obligated for any finder’s fee or commission, in connection with the

transactions contemplated hereby.  The

Company represents that it has not engaged any investment banker, finder or

broker, and neither is nor will be obligated for any finder’s fee or

commission, in connection with the transactions contemplated hereby.  Each party agrees to indemnify and hold

harmless the other from the liability for any fees, commissions and other

payments (and the costs and expenses of defending against such liability or

asserted liability) that may be owing as a result of such party’s breach of its

representation made in this Section 9.5.

 

9.6           Specific

Performance.  Each of the parties

hereto recognizes and acknowledges that a breach by it of any covenants or

agreements contained in this Agreement will cause the other party to sustain

damages for which it would not have an adequate remedy at law for money,

damages.  Therefore, in the event of any

such breach, the aggrieved party shall be entitled to the remedy of specific

performance of such covenants and agreements and injunctive and other equitable

relief (without posting bond) in addition to any other remedy to which it may

be entitled, at law or in equity.

 

9.7           Expenses.  Each party hereto shall pay all of its own

costs and expenses incurred in connection with the negotiation, preparation,

execution, delivery and performance of this Agreement and the transactions

contemplated herein, whether or not such transactions are consummated.

 

9.8           Amendments

and Waivers.  This Agreement may be

amended or modified only by a written instrument signed by the Company and the

Investors hereunder. 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 party against whom such

waiver is sought to be enforced.  No

waiver by either party of any default with respect to any provision, condition

or requirement hereof shall be deemed to be a continuing waiver in the future

thereof or a waiver of any other provision, condition or requirement hereof;

nor shall any delay or omission of either party to exercise any right hereunder

in any manner impair the exercise of any such right accruing to it thereafter.

 

9.9           Severability.  If one or more provisions of this Agreement

are held to be unenforceable, invalid or void by a court of competent

jurisdiction, such provision shall be excluded from this Agreement and the

balance of this Agreement shall be interpreted as if such provision were so

excluded and shall be enforceable in accordance with its terms.

 

19

 

9.10         Entire

Agreement.  This Agreement and the

documents referred to herein contain the entire understanding of the parties

with respect to the matters covered herein and supersedes all prior agreements

and understandings, written or oral, between the parties relating to the

subject matter hereof.

 

9.11         Governing

Law.  This Agreement shall be

governed by and construed under the laws of the State of California

(irrespective of its choice of law principles); provided, however, that neither

this Agreement nor any provision hereof shall be construed for or against any

party on the basis that such party drafted this Agreement or any provision

hereof.

 

9.12         Counterparts.  This Agreement may be executed by facsimile

copies and in two or more counterparts, each of which shall be deemed an

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

instrument.

 

9.13         Titles

and Subtitles.  The titles and

subtitles used in this Agreement are used for convenience only and are not to

be considered in construing or interpreting this Agreement.  Any reference in this Agreement to a

statutory provision or rule or regulation promulgated thereunder shall be deemed

to include any similar successor statutory provision or rule or regulation

promulgated thereunder.

 

IN WITNESS WHEREOF, the parties have executed this

Agreement as of the date first above written.

 

	

   

  	

  COMPANY

  	

   

  
	

   

  	

   

  
	

   

  	

  FIBERSTARS, INC.

  
	

   

  	

   

  
	

   

  
	

   

  	

  By

  	

  /s/ David N. Ruckert

  	

   

  
	

   

  
	

   

  	

  Name

  	

  David N. Ruckert

  	

   

  
	

   

  
	

   

  	

  Title

  	

  President, CEO

  	

   

  
	

   

  
	

   

  	

  INVESTORS

  	

   

  
	

   

  	

   

  
	

   

  	

  [Investor signatures follow on attached

  counter-parts]

  
						

 

20

 

SIGNATURE

PAGE TO

 

STOCK

AND WARRANT PURCHASE AGREEMENT

 

DATED AS

OF MARCH 2002

 

BY AND

AMONG

 

FIBERSTARS,

INC.

 

AND EACH

INVESTOR NAMED THEREIN

 

The undersigned hereby executes and delivers the

Fiberstars, Inc. Stock and Warrant Purchase Agreement (the “Agreement”) to

which this Signature Page is attached effective as of the date of the

Agreement, which Agreement and Signature Page, together with all counterparts

of such Agreement and signature pages of the other Investors named in such

Agreement, shall constitute one and the same document in accordance with the terms

of such Agreement.

 

	

   

  	

  Number of Shares:

  	

  200,000

  	

   

  
	

   

  
	

   

  	

  Number of Warrant Shares:

  	

  40,000

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Trigran Investments

  L.P.

  	

   

  
	

   

  	

  Print Name of Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

  /s/ Lawrence A. Oberman

  	

   

  	 

	

   

  	

   

  	

  Signature

  	

   

  
	

   

  
	

   

  
	

   

  	

  [If Investor is an entity]

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Vice President of

  General Partner

  	

   

  
	

   

  	

  Title of Signatory with

  Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Investor’s Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Facsimile:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Telephone:

  	

   

  	

   

  
										

 

21

 

SIGNATURE

PAGE TO

 

STOCK

AND WARRANT PURCHASE AGREEMENT

 

DATED AS

OF MARCH 2002

 

BY AND

AMONG

 

FIBERSTARS,

INC.

 

AND EACH

INVESTOR NAMED THEREIN

 

The undersigned hereby executes and delivers the

Fiberstars, Inc. Stock and Warrant Purchase Agreement (the “Agreement”) to

which this Signature Page is attached effective as of the date of the

Agreement, which Agreement and Signature Page, together with all counterparts

of such Agreement and signature pages of the other Investors named in such

Agreement, shall constitute one and the same document in accordance with the

terms of such Agreement.

 

	

   

  	

  Number of Shares:

  	

  40,299

  	

   

  
	

   

  
	

   

  	

  Number of Warrant Shares:

  	

  8,060

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  John B. Stuppin & Jane K. Stuppin Trustees

  UTD 3/11/91

  	

   

  
	

   

  	

  Print Name of Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

  /s/ John B. Stuppin

  	

   

  	 

	

   

  	

   

  	

  Signature

  	

   

  
	

   

  
	

   

  
	

   

  	

  [If Investor is an entity]

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Trustee

  	

   

  
	

   

  	

  Title of Signatory with

  Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Investor’s Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Facsimile:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Telephone:

  	

   

  	

   

  
											

 

 

22

 

SIGNATURE

PAGE TO

 

STOCK

AND WARRANT PURCHASE AGREEMENT

 

DATED AS

OF MARCH 2002

 

BY AND

AMONG

 

FIBERSTARS,

INC.

 

AND EACH

INVESTOR NAMED THEREIN

 

The undersigned hereby executes and delivers the

Fiberstars, Inc. Stock and Warrant Purchase Agreement (the “Agreement”) to

which this Signature Page is attached effective as of the date of the

Agreement, which Agreement and Signature Page, together with all counterparts

of such Agreement and signature pages of the other Investors named in such

Agreement, shall constitute one and the same document in accordance with the

terms of such Agreement.

 

	

   

  	

  Number of Shares:

  	

  33,333

  	

   

  
	

   

  
	

   

  	

  Number of Warrant Shares:

  	

  6,667

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  F. Van Kasper

  	

   

  
	

   

  	

  Print Name of Investor

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By

  	

  /s/ F. Van Kasper

  	

   

  
	

   

  	

   

  	

  Signature

  	

   

  
	

   

  
	

   

  	

  [If Investor is an entity]

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Title of Signatory with

  Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Investor’s Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Facsimile:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Telephone:

  	

   

  	

   

  
													

 

23

 

SIGNATURE

PAGE TO

 

STOCK

AND WARRANT PURCHASE AGREEMENT

 

DATED AS

OF MARCH 2002

 

BY AND

AMONG

 

FIBERSTARS,

INC.

 

AND EACH

INVESTOR NAMED THEREIN

 

The undersigned hereby executes and delivers the

Fiberstars, Inc. Stock and Warrant Purchase Agreement (the “Agreement”) to

which this Signature Page is attached effective as of the date of the

Agreement, which Agreement and Signature Page, together with all counterparts

of such Agreement and signature pages of the other Investors named in such

Agreement, shall constitute one and the same document in accordance with the

terms of such Agreement.

 

	

   

  	

  Number of Shares:

  	

  16,667

  	

   

  
	

   

  
	

   

  	

  Number of Warrant Shares:

  	

  3,333

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Dan Smith

  	

   

  
	

   

  	

  Print Name of Investor

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By

  	

  /s/ Dan Smith

  	

   

  
	

   

  	

   

  	

  Signature

  	

   

  
	

   

  
	

   

  	

  [If Investor is an entity]

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Title of Signatory with

  Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Investor’s Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Facsimile:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Telephone:

  	

   

  	

   

  
										

 

24

 

SIGNATURE

PAGE TO

 

STOCK

AND WARRANT PURCHASE AGREEMENT

 

DATED AS

OF MARCH 2002

 

BY AND

AMONG

 

FIBERSTARS,

INC.

 

AND EACH

INVESTOR NAMED THEREIN

 

The undersigned hereby executes and delivers the

Fiberstars, Inc. Stock and Warrant Purchase Agreement (the “Agreement”) to

which this Signature Page is attached effective as of the date of the

Agreement, which Agreement and Signature Page, together with all counterparts

of such Agreement and signature pages of the other Investors named in such

Agreement, shall constitute one and the same document in accordance with the

terms of such Agreement.

 

	

   

  	

  Number of Shares:

  	

  16,667

  	

   

  
	

   

  
	

   

  	

  Number of Warrant Shares:

  	

  3,333

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Robert R. Tufts and Joyce A. Tufts, Trustees U/A,

  Dated September 18, 1987

  	

   

  
	

   

  	

  Print Name of Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

  /s/ Robert R. Tufts

  	

   

  
	

   

  	

   

  	

  Signature

  	

   

  
	

   

  
	

   

  	

  [If Investor is an entity]

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Title of Signatory with

  Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Investor’s Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Facsimile:

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  
	

   

  	

  Telephone:

  	

   

  	

   

  	 

													

 

25

 

SIGNATURE

PAGE TO

 

STOCK

AND WARRANT PURCHASE AGREEMENT

 

DATED AS

OF MARCH 2002

 

BY AND

AMONG

 

FIBERSTARS,

INC.

 

AND EACH

INVESTOR NAMED THEREIN

 

The undersigned hereby executes and delivers the Fiberstars,

Inc. Stock and Warrant Purchase Agreement (the “Agreement”) to which this

Signature Page is attached effective as of the date of the Agreement, which

Agreement and Signature Page, together with all counterparts of such Agreement

and signature pages of the other Investors named in such Agreement, shall

constitute one and the same document in accordance with the terms of such

Agreement.

 

	

   

  	

  Number of Shares:

  	

   

  	

   

  
	

   

  
	

   

  	

  Number of Warrant Shares:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  William E. Mercer

  	

   

  
	

   

  	

  Print Name of Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

  /s/ William E. Mercer

  	

   

  
	

   

  	

   

  	

  Signature

  	

   

  
	

   

  
	

   

  
	

   

  	

  [If Investor is an entity]

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Title of Signatory with

  Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Investor’s Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Facsimile:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Telephone:

  	

   

  	

   

  
													

 

26

 

SIGNATURE

PAGE TO

 

STOCK

AND WARRANT PURCHASE AGREEMENT

 

DATED AS

OF MARCH 2002

 

BY AND

AMONG

 

FIBERSTARS,

INC.

 

AND EACH

INVESTOR NAMED THEREIN

 

The undersigned hereby executes and delivers the

Fiberstars, Inc. Stock and Warrant Purchase Agreement (the “Agreement”) to

which this Signature Page is attached effective as of the date of the

Agreement, which Agreement and Signature Page, together with all counterparts

of such Agreement and signature pages of the other Investors named in such

Agreement, shall constitute one and the same document in accordance with the

terms of such Agreement.

 

	

   

  	

  Number of Shares:

  	

  6,667

  	

   

  
	

   

  
	

   

  	

  Number of Warrant Shares:

  	

  1,333

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Walter L. Skaggs and

  Diane K. Skaggs

  	

   

  
	

   

  	

  Print Name of Investor

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  /s/ Walter L. Skaggs

  	

   

  
	

   

  	

  By

  	

  /s/ Diane K. Skaggs

  	

   

  
	

   

  	

   

  	

  Signature

  	

   

  
	

   

  
	

   

  	

  [If Investor is an entity]

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Title of Signatory with

  Investor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Investor’s Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Facsimile:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Telephone:

  	

   

  	

   

  
											

 

27

 

SCHEDULE 1

 

SCHEDULE OF

INVESTORS AND SHARES

 

	

  Investor

  	

   

  	

  Aggregate

  Purchase Price

  	

   

  	

  Per Share

  Purchase

  Price

  	

   

  	

  Common

  Shares

  Purchased

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Trigran Investments L.P.

  	

   

  	

  $

  	

  600,000.00

  	

   

  	

  $

  	

  3.00

  	

   

  	

  200,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  John B. Stuppin

  & Jane K. Stuppin, Trustees under the John B. and Jane K.

  Stuppin Revocable Living Trust dated March 11, 1991

  	

   

  	

  $

  	

  135,000.00

  	

   

  	

  $

  	

  3.35

  	

   

  	

  40,299

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Van Kasper

  	

   

  	

  $

  	

  100,000.00

  	

   

  	

  $

  	

  3.00

  	

   

  	

  33,333

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Dan Smith

  	

   

  	

  $

  	

  50,000.00

  	

   

  	

  $

  	

  3.00

  	

   

  	

  16,667

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Robert R. Tufts

  	

   

  	

  $

  	

  50,000.00

  	

   

  	

  $

  	

  3.00

  	

   

  	

  16,667

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  William E. Mercer, Jr.

  	

   

  	

  $

  	

  45,000.00

  	

   

  	

  $

  	

  3.00

  	

   

  	

  15,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Diane Skaggs

  	

   

  	

  $

  	

  20,000.00

  	

   

  	

  $

  	

  3.00

  	

   

  	

  6,667

  	

   

  

 

S-1-1

 

SCHEDULE

2

 

SCHEDULE OF

WARRANTS

 

	

  Investor

  	

   

  	

  Warrant

  Shares

  	

   

  	

  Warrant

  Exercise 

  Price

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Trigran

  Investments L.P.

  	

   

  	

  40,000

  	

   

  	

  4.30

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  John B.

  Stuppin and Jane K. Stuppin, Trustees under the John B. and

  Jane K. Stuppin Revocable Living Trust dated March 11, 1991

  	

   

  	

  8,060

  	

   

  	

  4.30

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Van Kasper

  	

   

  	

  6,667

  	

   

  	

  4.30

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Dan Smith

  	

   

  	

  3,333

  	

   

  	

  4.30

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Robert R.

  Tufts

  	

   

  	

  3,333

  	

   

  	

  4.30

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  William E.

  Mercer, Jr.

  	

   

  	

  3,000

  	

   

  	

  4.30

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Diane Skaggs

  	

   

  	

  1,333

  	

   

  	

  4.30

  	

   

  

 

 

S-2-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]