Document:

EXHIBIT 4.9

 

THIS
WARRANT AND THE CAPITAL STOCK ISSUABLE HEREUNDER HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF.  NEITHER THIS
WARRANT NOR THE CAPITAL STOCK ISSUABLE HEREUNDER HAS BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR WITH ANY STATE SECURITIES COMMISSIONER
AND, ACCORDINGLY, MAY NOT BE SOLD OR TRANSFERRED UNLESS REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND QUALIFIED UNDER ALL APPLICABLE STATE
SECURITIES LAWS, OR UNLESS EXEMPTIONS FROM SUCH REGISTRATION AND QUALIFICATION
ARE AVAILABLE.

 

THE
WARRANT PRICE SET FORTH HEREIN REFLECTS ANTI-DILUTION ADJUSTMENTS AS OF
APRIL 1, 2004 PURSUANT TO SECTION 4 OF THE WARRANT.  THIS WARRANT SUPERSEDES ALL PREVIOUS COMMUNICATIONS,
UNDERSTANDINGS AND AGREEMENTS, EITHER ORAL OR WRITTEN, BETWEEN THE COMPANY AND
THE HOLDER WITH RESPECT TO THE WARRANT.

 

RAINING
DATA CORPORATION

COMMON STOCK PURCHASE WARRANT

 

	
  500,000 Shares of
  Common Stock

  	
   

  	
  Originally issued on November 30, 2000

  and as adjusted on April 1, 2003 and April 1, 2004

  
	
   

  	
   

  	
  Irvine, California

  

 

Reference is hereby made
to that certain Note and Warrant Purchase Agreement (the “Purchase Agreement”)
by and between Raining Data Corporation, a Delaware corporation, formerly Omnis
Technology Corporation (the “Company”) and Astoria Capital Partners, L.P., a
California limited partnership (“Astoria”), the terms of which are incorporated
by this reference.  The term “Holder”
shall initially refer to Astoria, which is the initial holder of this Warrant
and shall further refer to any subsequent permitted holder of this Warrant from
time to time.

 

The Company hereby
certifies that, for value received, Holder is entitled to purchase from the
Company, on or before the Expiration Date (as defined below), up to Five
Hundred Thousand (500,000) duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock of the Company, $0.10 par value (the
“Stock”) under the terms and conditions set forth herein.  Capitalized terms used and not otherwise
defined in this Common Stock Purchase Warrant (this “Warrant”) shall have the
respective meanings assigned to them in the Purchase Agreement as the same may
be supplemented, modified, amended, renewed or restated from time to time.

 

 

Section 1. Price and Exercise of
Warrant.

 

1.1  Term of Warrant.  This Warrant shall be exercisable for a period of five (5) years
after the date of original issuance (the expiration date for this Warrant is
hereinafter referred to as the “Expiration Date”).

 

1.2  Warrant Price.  The price per share at which the shares of Stock are issuable
upon exercise of this Warrant (the “Warrant Shares”) shall be Six Dollars and
Twenty-Nine Cents ($6.29) per share (the “Warrant Price”) as adjusted hereunder.

 

1.3  Exercise of Warrant.

 

(a)  This
Warrant may be exercised, in whole or in part, upon surrender to the Company at
its then principal offices in the United States of the certificate or
certificates evidencing this Warrant to be exercised, together with the form of
election to exercise attached hereto as Exhibit A duly completed and
executed, and upon payment to the Company of the aggregate Warrant Price for
the number of Warrant Shares in respect of which this Warrant is then being
exercised.

 

(b)  Payment of
the aggregate Warrant Price may be made (i) in cash or by cashier’s or
bank check or (ii) if the Stock is at the time traded on any national
securities exchange or in any United States interdealer quotation system, by
making a Cashless Exercise (as defined herein).  Upon a “Cashless Exercise” the Holder shall receive Stock on a
net basis such that, without the payment of any funds, the Holder shall
surrender this Warrant in exchange for the number of shares of Stock equal to
the product of (i) the number of shares of Stock as to which this Warrant
is being exercised, multiplied by (ii) a fraction, the numerator of which
is the per share closing price of such Stock as of the close of trading on the
last trading day prior to the date of the Cashless Exercise (or, if no such
closing price is reported for such day, the mean between the closing bid and
the closing asked prices on the principal national securities exchange or in
the principal United States interdealer quotation system on which the Stock is
traded)(“Trading Price”) less the then Warrant Price, and the denominator of
which is said Trading Price.

 

(c)  Subject to
Section 2 hereof, upon surrender of this Warrant, and the duly completed
and executed form of election to exercise, and payment of the Warrant Price in
cash or pursuant to the Cashless Exercise, the Company shall cause to be issued
and delivered to the Holder or such other person as the Holder may designate in
writing hereunder a certificate or certificates for the number of full shares
of Stock so purchased upon the exercise of this Warrant.  Such certificate or certificates shall be
deemed to have been issued and any person so designated to be named therein
shall be deemed to have become a holder of record of such Warrant Shares as of
the date of the surrender of this Warrant, and the duly completed and executed
form of election to exercise, and payment of the Warrant Price; provided
however, that if, the date of surrender of this Warrant and payment of the
Warrant Price is not a business day, the certificates for the Warrant Shares
shall be issued as of the next business day (whether before or after the
Expiration Date), and, until such date, the Company shall be under no duty to
cause to be delivered any certificate for such Warrant Shares or for shares of
such other class of stock.

 

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1.4  Fractional Interests.  The Company shall not be required to issue
fractions of shares of Stock on the exercise of this Warrant.  If any fraction of a share of Stock would be
issuable upon the exercise of this Warrant (or any portion thereof), the
Company shall purchase such fraction for an amount in cash equal to the same
fraction of the last reported closing price of the Stock on the NASDAQ National
Market System or any other national securities exchange or market on which the
Stock is then listed or traded, and if not so listed or traded, at the then
fair market value of a single share of Stock as determined in good faith by the
Board of Directors of the Company, which determination shall be binding and
conclusive.

 

Section 2. Exchange and
Transfer of Warrant and Warrant Shares.

 

(a)  This
Warrant and the Warrant Shares have not been registered under any securities
laws and shall be subject to the rights, restrictions, limitations,
representations, warranties and covenants set forth in the Purchase Agreement
at all times.  In connection therewith
this Warrant hereby does bear and any stock certificates issued pursuant to the
exercise of this Warrant or any substitute therefor shall bear the legends
described in the Purchase Agreement.

 

(b)  This
Warrant may be transferred, in whole or in part, without restriction, subject
to receipt of an opinion from Wilson, Sonsini, Goodrich & Rosati or any
other law firm satisfactory to the Company that such transfer will not require
registration or qualification under applicable securities laws (or such
registration or qualification has been effected) and as otherwise provided in
the Purchase Agreement.  A transfer may
be registered with the Company by submission to it of this Warrant, together
with the annexed Assignment Form attached hereto as Exhibit B duly
completed and executed.  After the
receipt by the Company of this Warrant and the Assignment Form so completed and
executed and after compliance with all conditions hereunder, the Company will
issue and deliver to the transferee a new warrant (representing the portion of
this Warrant so transferred) at the same Warrant Price per share and otherwise
having the same terms and provisions as this Warrant, which the Company will
register in the new holder’s name.  In
the event of a partial transfer of this Warrant, the Company shall concurrently
issue and deliver to the transferring holder a new warrant that entitles the transferring
holder to purchase the balance of this Warrant not so transferred and that
otherwise is upon the same terms and conditions as this Warrant.  Upon the due delivery of this Warrant for
transfer, the transferee holder shall be deemed for all purposes to have become
the holder of the portion of this Warrant so transferred, effective immediately
prior to the close of business on the date of such delivery, irrespective of
the date of actual delivery of the new warrant representing this Warrant so transferred.

 

(c)  In the
event of the loss, theft or destruction of this Warrant, the Company shall
execute and deliver an identical new warrant to the Holder in substitution
therefor upon the Company’s receipt of (i) evidence reasonably
satisfactory to the Company of such event and (ii) if requested by the
Company, an indemnity agreement reasonably satisfactory in form and substance
to the Company.  In the event of the
mutilation of or other damage to this Warrant, the Company shall execute and
deliver an identical new warrant to the Holder in substitution therefor upon
the Company’s receipt of the mutilated or damaged warrant.

 

(d)  The
Company shall pay all costs and expenses incurred in connection with the
exercise, exchange, transfer or replacement of this Warrant, including, without
limitation, the costs

 

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of preparation, execution and delivery of a new
warrant and of stock certificates representing all Warrant Shares for which the
Warrant is being exercised; provided, that the Holder shall pay all taxes
payable in connection with the exercise or transfer or replacement of this
Warrant and any transfer or disposition of the Warrant Shares.

 

Section 3. Certain Covenants.

 

The Company covenants
that during the period this Warrant is exercisable in accordance with its
terms, the Company will (i) reserve from its authorized and unissued
Stock, a sufficient number of shares to provide for the issuance of Stock upon
exercise of this Warrant or (ii) if at any time the number of authorized
but unissued shares of Stock shall not be sufficient to effect the exercise of
this Warrant in full, in addition to such other remedies as shall be available
to the Holder, the Company will use its best efforts to take such corporate
action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of Stock to such number of shares as shall be
sufficient for such purposes; subject to applicable securities laws and the
limitations set forth in the Purchase Agreement.  The Company will not, by amendment of its Certificate of
Incorporation or otherwise, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant.

 

Section 4. Adjustment of
Warrant Price and Number of Warrant Shares.

 

The Warrant Price per
share and the number and kind of securities purchasable upon the exercise of
this Warrant shall be subject to adjustment from time to time upon the
occurrence of certain events, as hereinafter provided.

 

(a)  In case
the Company shall after the date hereof (i) pay a dividend or make a
distribution on its Stock in shares of its Stock, (ii) engage in a stock
split or reverse stock split or combination of its outstanding Stock, or
(iii) issue any shares by reclassification of its Stock (including any
such reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation) without receipt of consideration, the
Warrant Price for the Shares in effect at the time of such event shall be
proportionally adjusted as herein provided so that the Holder, upon exercise of
this Warrant after such date, shall be entitled to receive the aggregate number
and kind of shares of Stock which, if this Warrant had been exercised
immediately prior to such transaction date, it would have owned upon such
exercise and been entitled to receive upon such dividend, distribution, stock
split or reverse stock split, combination or reclassification.

 

(b)  Whenever
the Warrant Price payable upon exercise of this Warrant is adjusted pursuant to
Section 4(a) hereof, the number of Warrant Shares purchasable upon
exercise of this Warrant shall simultaneously be adjusted by multiplying the
number of Warrant Shares issuable upon exercise of this Warrant immediately
before the event that caused the adjustment by the Warrant Price in effect as
of the date of this Warrant and dividing the product so obtained by the Warrant
Price, as adjusted.

 

(c)  No
adjustment in the Warrant Price shall be required unless such adjustment would
require an increase or decrease of at least 0.75% in such price; provided
however that any such adjustments not required to be made in this
Subsection shall be carried forward and taken into

 

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account in any subsequent adjustment.  For these purposes all calculations under
this Section 4 shall be made to the nearest cent or to the nearest
one-thousandth of a share, as the case may be.

 

(d)  Whenever
the Warrant Price and number of Warrant Shares is adjusted hereunder, as herein
provided, the Company shall promptly cause a notice setting forth the adjusted
Warrant Price and adjusted number of shares issuable upon exercise of this
Warrant to be mailed to the Holder.  The
certificate setting forth the computation shall be signed by the Chief
Financial Officer of the Company.

 

(e)  In the
event that at any time, as a result of any adjustment made pursuant to the
foregoing Section 4(a), the holder of this Warrant thereafter shall become
entitled to receive any shares of the capital stock of the Company, other than
Stock, thereafter the number of such other shares so receivable upon exercise
of this Warrant shall be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with respect
to the Stock contained in Section 4(a). 
Subject to the foregoing exception, no adjustment shall be made
hereunder for (i) any dividend or distribution or other transaction by the
Company in any class of its preferred stock; or (ii) any changes occurring
on account of the issuance of capital stock of the Company at any time upon the
exercise of any stock options, rights or warrants or upon the conversion of any
convertible securities or debt (whether existence on or after the date of this
Warrant) or other issuance of capital stock of the Company in a private or
public offering for consideration.

 

(f)  In the
event that during the Term hereof the Company shall issue additional shares of
its Common Stock for a consideration per share (“Issue Price”) less than the
then applicable Warrant Price as adjusted hereunder, then and in each such case
the then existing Warrant Price shall be reduced, as of the opening of business
on the date of such issue or sale, to a price determined by multiplying the
Warrant Price by a fraction (i) the numerator of which shall be (A) the
number of shares of Common Stock deemed outstanding (as defined below)
immediately prior to such issue or sale, plus (B) the number of shares of
Common Stock which the aggregate consideration received (as defined below) by
the Company for the total number of additional shares of Common Stock so issued
would purchase at such Warrant Price and (ii) the denominator of which
shall be the number of shares of Common Stock deemed outstanding (as defined
below) immediately prior to such issue or sale plus the total number of
additional shares of Common Stock so issued. 
For the purposes of the preceding sentence, the number of shares of
Common Stock deemed to be outstanding as of a given date shall be the sum of
(A) the number of shares of Common Stock actually outstanding and (B) the
number of shares of Common Stock which could be obtained through the exercise
or conversion of all other rights, options and convertible securities on the
day immediately preceding the given date. 
For these purposes no adjustment shall be made for (i) any
transaction otherwise governed by this Section 4 or by Section 5
hereunder; (ii) any dividend or distribution or other transaction by the
Company in any class of its preferred stock; (iii) any issuance of capital
stock of the Company at any time upon the exercise of any stock options, rights
or warrants by any employee or independent contractor or other service
provider, licensor, vendor or lender of the Company; or (iv) the Merger as
defined in the Purchase Agreement.  For
the purpose of making any adjustment required under this Section 4(f), the
consideration received by the Company for any issue or sale of Common Stock
shall (A) to the extent it consists of cash, be computed at the net amount of
cash received by the Company after deduction of any underwriting or similar

 

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commissions, compensation or concessions paid or
allowed by the Company in connection with such issue or sale but without
deduction of any expenses payable by the Company, and (B) to the extent it
consists of property other than cash, be computed at the fair value of that
property as determined in good faith by the Board of Directors.

 

Section 5. Consolidation,
Merger or Sale of Assets.

 

(a)  In case of
any consolidation of the Company with, or merger of the Company with or into
any other entity (other than a merger which does not result in any
reclassification, conversion, exchange or cancellation of outstanding shares of
Stock), or any sale or transfer of all or substantially all of the assets of
the Company or of the entity formed by such consolidation or resulting from
such merger or which acquires such assets, as the case may be, after the date
hereof, the Holder shall have the right thereafter to exercise this Warrant for
the kind and amount of securities, cash and other property receivable upon such
consolidation, merger, sale or transfer by a holder of the number of shares of
Stock for which this Warrant may have been exercised immediately prior to such
consolidation, merger, sale or transfer, assuming (i) such holder of Stock
is not a person with which the Company consolidated or into which the Company
merged or which merged into the Company or to which such sale or transfer was
made, as the case may be (“Constituent Person”), or an Affiliate of a
Constituent Person and (ii) in the case of a consolidation, merger, sale
or transfer which includes an election as to the consideration to be received
by the holders, such holder of Stock failed to exercise its rights of election
as to the kind or amount of securities, cash and other property receivable upon
such consolidation, merger, sale or transfer (provided however that if the kind
or amount of securities, cash and other property receivable upon such
consolidation, merger, sale or transfer is not the same for each share of Stock
held immediately prior to such consolidation, merger, sale or transfer by other
than a Constituent Person or an Affiliate thereof and in respect of which such
rights of election shall not have been exercised (“Non-Electing Share”), then
for the purposes of this Section the kind and amount of securities, cash,
and other property receivable upon such consolidation, merger, sale or transfer
by each Non-Electing Share shall be deemed to be the kind and amount so
receivable per share by a plurality of the Non-Electing Shares).  For purposes of this Section 5, “Affiliate”
shall have the meaning given to such term in Rule 12b-2 promulgated under
the Securities and Exchange Act of 1934, as amended (the “1934 Act”).

 

(b)  Adjustments
for events subsequent to the effective date of such a consolidation, merger and
sale of assets shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Warrant. 
In any such event, the Company shall exercise its best efforts to have
effective provisions made in the certificate or articles of incorporation of
the resulting or surviving corporation, in any contract of sale, conveyance,
lease or transfer, or otherwise so that the provisions set forth herein for the
protection of the rights of the Holder shall thereafter continue to be
applicable; and any such resulting or surviving corporation shall expressly
assume the obligation to deliver, upon exercise, such shares of stock, other
securities, cash and property.  The
provisions of this Section 5 shall similarly apply to successive
consolidations, mergers, sales, leases or transfers.

 

6

 

Section 6. Registration
Rights.

 

(a)  Piggyback
Registration.  If the Company
proposes to register any of its securities at any time after the date hereof,
the Company shall notify the Holder in writing at least thirty (30) days prior
to filing any such registration statement under the Securities Act or 1933, as
amended (the “Securities Act”), for purposes of effecting a public offering of
securities of the Company (excluding registration statements relating to any
employee benefit plan or a corporate reorganization, including securities
issued by the Company in an acquisition transaction).  The Holder shall have the right to include in such registration
statement all or any part of the Holder’s Warrant Shares or other securities
into which the Warrant Shares have been or may be converted (“Registrable
Securities”).  If the Holder elects to
include in any such registration statement all or any part of the Holder’s
Registrable Securities, then the Holder shall, within twenty (20) days after
receipt of the above-described notice from the Company, so notify the Company
in writing, and in such notice shall inform the Company of the number of
Registrable Securities the Holder wishes to include in such registration
statement.  If the Holder decides not to
include all of its Registrable Securities in any registration statement
thereafter filed by the Company, the Holder shall nevertheless continue to have
the right to include any Registrable Securities in any subsequent registration
statement or registration statements as may be filed by the Company on or
before the date set forth above with respect to offerings of its securities,
all upon the terms and conditions set forth herein.

 

(b)  Underwriting.  If a registration statement under which the
Company gives notice under this Section is for an underwritten offering,
then the Company shall so advise the Holder. 
In such event, the right of the Holder to include its Registrable
Securities in a registration pursuant to this Section shall be conditioned
upon the Holder’s participation in such underwriting and the inclusion of the
Holder’s Registrable Securities in the underwriting to the extent provided
herein.  The Holder shall enter into an
underwriting agreement in customary form with the managing underwriter or
underwriter(s) selected for such underwriting. 
Notwithstanding any other provision of this Agreement, if the managing
underwriter determine(s) in good faith that marketing factors require a limitation
of the number of shares to be underwritten, then the managing underwriter(s)
may exclude shares (including Registrable Securities) from the registration and
the underwriting, and the number of shares that may be included in the
registration and the underwriting shall be allocated, first, to the Company,
and second, to the Holder.  The Holder
may elect to withdraw from any offering by written notice to the Company and
the underwriter, delivered at least twenty (20) days prior to the effective
date of the registration statement.  Any
Registrable Securities excluded or withdrawn from such underwriting shall be
excluded and withdrawn from the registration.

 

(c)  Expenses.  All expenses incurred in connection with a
registration pursuant to this Section (excluding underwriters’ and
brokers’ discounts and commissions; and the fees and disbursements of special
counsel for the Holder), including, without limitation all federal registration
and qualification fees, “blue sky” registration and qualification fees for up
to five (5) states, printers’ and accounting fees, fees and disbursements of
counsel for the Company shall be borne by the Company.

 

(d)  Indemnification.  In the event any Registrable Securities are
included in a registration statement pursuant hereto:

 

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(1)  By the
Company.  To the extent permitted by
law, the Company will indemnify and hold harmless the Holder, the partners,
officers and directors of the Holder, any underwriter (as defined in the
Securities Act) for Holder and each person, if any, who controls the Holder or
underwriter within the meaning of the Securities Act or the 1934 Act, against
any losses, claims, damages, or liabilities (joint or several) to which they
may become subject under the Securities Act, the l934 Act or other federal or
state law, insofar as such losses, claims, damages, or liabilities (or actions
in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively, “Violations” and,
individually, a “Violation”): (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto; (ii) the 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 (iii) any
violation or alleged violation by the Company of the Securities Act, the 1934
Act, any federal or state securities law or any rule or regulation promulgated
under the Securities Act, the 1934 Act or any federal or state securities law
in connection with the offering covered by such registration statement; and the
Company will reimburse the Holder, each partner, officer or director,
underwriter or controlling person for any legal or other expenses reasonably
incurred by them, as incurred, in connection with investigating or defending
any such loss, claim, damage, liability or action; provided however, that the
indemnity agreement contained in this subsection 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), nor shall the Company be liable in
any such case for any such loss, claim, damage, liability or action to the
extent that it arises out of or is based upon a Violation which occurs in
reliance upon and in conformity with written information furnished expressly
for use in connection with such registration by such Holder, partner, officer,
director, underwriter or controlling person of the Holder.

 

(2)  By the
Holder.  To the extent permitted by
law, the Holder will indemnify and hold harmless the Company, each of its
directors, each of its officers who have signed the registration statement,
each person, if any, who controls the Company within the meaning of the
Securities Act, any underwriter, against any losses, claims, damages or liabilities
(joint or several) to which the Company or any such director, officer,
controlling person, or underwriter may become subject under the Securities Act,
the 1934 Act or other federal or state law, insofar as such losses, claims,
damages or liabilities (or actions in respect thereto) arise out of or are
based upon any Violation, in each case to the extent (and only to the extent)
that such Violation occurs in reliance upon and in conformity with written
information furnished by the Holder expressly for use in connection with such
registration; and the Holder will reimburse any legal or other expenses
reasonably incurred by the Company or any such director, officer, controlling
person, or underwriter in connection with investigating or defending any such loss,
claim, damage, liability or action; provided however, that the indemnity
agreement contained in this subsection 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 Holder, which consent shall
not be unreasonably withheld; and provided further, that the total amounts
payable in indemnity by the Holder under this Section in respect of any
Violation shall not exceed the net proceeds received by the Holder in the
registered offering out of which such Violation arises.

 

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(3)  Notice.  Promptly after receipt by an indemnified
party under this Section of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this
Section, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided however, that an
indemnified party shall have the right to retain its own counsel, with the fees
and expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential conflict of interests between such
indemnified party and any other party represented by such counsel in such
proceeding.  The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend such
action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section, but the omission so to deliver written
notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section.

 

(4)  Defect
Eliminated in Final Prospectus.  The
foregoing indemnity agreements of the Company and the Holder are subject to the
condition that, insofar as they relate to any Violation made in a preliminary
prospectus but eliminated or remedied in the amended prospectus on file with
the SEC at the time the registration statement in question becomes effective or
the amended prospectus filed with the SEC pursuant to SEC
Rule 424(b) (the “Final Prospectus”), such indemnity agreement shall
not inure to the benefit of any person if a copy of the Final Prospectus was
furnished to the indemnified party and was not furnished to the person
asserting the loss, liability, claim or damage at or prior to the time such
action is required by the Securities Act.

 

(e)  “Market
Stand-Off” Agreements.

 

(i)  Notwithstanding
any contrary provision in the Purchase Agreement or this Warrant, the Holder
agrees that such Holder shall not (A) lend, offer, pledge, sell, contract to
sell, sell any option or contract to purchase, purchase any option or contract
to sell, grant any option, right or warrant to purchase, or otherwise transfer
or dispose of, directly or indirectly, this Warrant or any shares of Stock
issuable under this Warrant or any securities convertible into or exercisable
or exchangeable for this Warrant or such Stock, or (B) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the
economic consequences of ownership of this Warrant or such Stock or any
securities convertible into or exercisable or exchangeable for this Warrant or
such Stock, whether any such transaction is to be settled by delivery of Stock
or such other securities, in cash or otherwise, without the prior written
consent of the Company during the period beginning on the Effective Date of
this Warrant and ending on March 31, 2001.

 

(ii)  The
Holder hereby further agrees that it shall not, to the extent Registrable Securities
are not included in any registration statements and if requested by the Company
or an underwriter of securities of the Company, sell or otherwise transfer or
dispose of any Warrant Shares or securities into which they have been or may be
converted (other than to donees or partners of the Holder who agree to be
similarly bound and further subject to the prior written consent of the
Company, which shall not be unreasonably withheld) for up to one hundred eighty

 

9

 

(180) days following the effective date of a
registration statement of the Company filed under the Securities Act for a firm
commitment underwritten offering of newly-issued common stock of the Company;
provided, however, that all executive officers, directors and 1% shareholders
of the Company then holding Common Stock of the Company enter into similar
agreements.  In order to enforce the
foregoing covenant, the Company shall have the right to place restrictive
legends on the certificates representing the shares subject to this
Section and to impose stop transfer instructions with respect to the
Warrant Securities (and the Warrant Shares of every other person subject to the
foregoing restriction) until the end of such period.

 

Section 7. Limitations on
Rights and Obligations of the Warrant Holder.

 

This Warrant shall not
entitle the Holder to any voting rights or dividends or any other rights of a
stockholder in the Company.

 

Section 8. Capital
Transactions.

 

Neither the grant of this
Warrant nor the issuance of Warrant Shares nor any other provision of this
Warrant shall in any manner limit or affect the right of the Company to adjust,
reclassify, recapitalize, restructure, reorganize or otherwise change its
capital or business structure or issue options or warrants or other rights to
its securities or to merge, consolidate, dissolve, liquidate or sell or
transfer or otherwise dispose of all or any part of its stock, business or
assets at any time.

 

Section 9. Notices.

 

Any notice or other communication
or payment required or permitted hereunder shall made pursuant to the notice
provisions set forth in the Purchase Agreement.

 

Section 10. Amendments and
Waivers.

 

This Warrant and any
provision hereof may be modified, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such
modification, waiver, discharge or termination is sought.

 

Section 11. Applicable Law.

 

This Warrant is being
delivered in and shall be construed in accordance with the laws of the State of
California, without regard to conflicts of laws principles.

 

Section 12. Severability.

 

If any provision of this
Warrant shall be judicially determined to be invalid, illegal or unenforceable
by a court of competent jurisdiction, the validity, legality and enforceability
of the remaining provisions shall not in any manner be affected or impaired and
shall remain in full force and effect.

 

10

 

Section 13. Interpretation.

 

Sections and
section headings contained in this Warrant are for reference purposes
only, and shall not affect in any manner the meaning of interpretation of this
Warrant.  Whenever the context requires,
references to the singular shall include the plural and the plural the singular
and any gender shall include any other gender. 
The parties acknowledge that each party has reviewed this Warrant, and
no provision of this Warrant shall be interpreted for or against any party
because such party or its representative drafted such provision.

 

Section 14. Successors and
Assigns.

 

Except as otherwise
expressly provided herein and subject to any restrictions on transfer under
applicable securities laws, the provisions hereof shall inure to the benefit of
and be binding upon each of the parties; the successors and assigns of the
Company; and the heirs, devisees, executors, administrators, representatives,
successors and assigns of Holder.

 

11

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed on the day and year first
above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  RAINING DATA
  CORPORATION,

  a Delaware corporation F/K/A

  OMNIS TECHNOLOGY CORPORATION,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian C. Bezdek

  
	
   

  	
  Name:

  	
  Brian C. Bezdek

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
  Address:

  	
  17500 Cartwright Road

  Irvine, CA  92614

  
				

 

 

EXHIBIT
A

 

To:          Raining Data Corporation

 

ELECTION
TO EXERCISE

 

The undersigned hereby
exercises its right to subscribe for and purchase from Raining Data Corporation
                                               
fully paid, validly issued and nonassessable shares of Common Stock covered by
the within Warrant and tenders payment herewith in the amount of
$                 
in accordance with and subject to the terms thereof, and requests that
certificates for such shares be issued in the name of, and delivered to:

 

 

 

The undersigned hereby
reaffirms the representations, warranties and covenants set forth in
Section 3 of the Note and Warrant Purchase Agreement by and between
Raining Data Corporation, a Delaware corporation and Astoria Capital Partners,
L.P., a California limited partnership, as of the date hereof.

 

	
  Date:

  	
   

  	
   

  	
  [Holder]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

To:          Raining Data Corporation

 

The undersigned hereby
assigns and transfers this Warrant to

 

(Insert assignee’s social
security or tax identification number)

 

 

 

 

(Print or type assignee’s
name, address and postal code)

 

and irrevocably appoints

 

to transfer this Warrant
on the books of the Company.

 

	
  Date:

  	
   

  	
   

  	
  [Holder]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  

 

(Sign exactly as your
name appears on the face of this Warrant)

 

Signature guarantee:Exhibit 10.4

 

EMPLOYMENT AND SERVICE AGREEMENT

 

This Employment and Service Agreement (“Agreement”) is effective April
1, 2004, between and among Raining Data Corporation, including its UK
subsidiary, RAINING DATA UK, LTD., and its successors in interest (collectively
referred to as “Raining Data Corporation” or the “Company”) whose registered
office is located at Mitford House, Benhall, Saxmindham, Suffolk, UK IP17 1JS
and Gwyneth Margaret Gibbs, an employee of Raining Data UK, LTD, whose address
is Church Farm House, Church Road, Blaxhall, Woodbridge, Suffolk, UK IP12 2DH.

 

NOW IT IS HEREBY AGREED AS FOLLOWS:

 

1.              TERM OF
EMPLOYMENT.  With effect from April 1,
2004 the Company shall employ the Employee and the Employee shall serve the
Company. The Agreement will continue to until either party gives written notice
of intent to terminate in accordance with the terms of this Agreement.

 

2.             DUTIES AND
RESPONSIBILITES.   During the term of
employment the Employee’s role will include, but is not limited to:

 

•             Manage and oversee
the European Operations as directed by the Company

•             Oversee the day to
day operations of Mitford House

•             Oversee and direct
the sales, marketing, engineering and corporate operations as directed by the
Company, its management and directors

 

(a) During
Employee’s employment hereunder, the Employee shall devote the whole of
Employee’s time and attention during business hours to the business of the
Company and shall use Employee’s best endeavors at all times to promote the
interest and welfare of the Company.

 

(b) The
Employee shall exercise and perform such powers and duties as the Company shall
from time to time delegate to Employee.

 

(c) The
Employee shall conform to such hours of work as may be required for the proper
performance of Employee’s duties and shall not be entitled to receive any
additional remuneration for work performed outside Employee’s normal business
hours.

 

3.             RENUMERATION.  The Company shall, during the continuance of
the agreement, pay to the employee by way of remuneration:

 

(a) A basic
salary of Pound Sterling £125,000 per annum which shall be payable pro rata in
arrears on the last day of each calendar month by equal monthly installments.

 

(b)
Reimbursement for all expenses reasonably and properly incurred by the Employee
in or about the discharge of Employee’s duties

 

(c) Company
makes no promise or representation that Employee will receive any salary
increases. Company shall review Employee’s salary on an annual basis.

Any increases to the salary as stated in Section 3 (a) above shall be
at the sole discretion of the Company, and the provisions of the Agreement
shall continue to apply as varied.

 

4.             MEDICAL AND HEALTH
BENEFITS.  The Company shall provide the
Employee with private medical and permanent health insurance in a category and
at a cost considered appropriate by Company for the Employee during this
Agreement.

 

 

5.             HOLIDAYS.  The
Employee shall be entitled to twenty-five (25) working days’ holiday in each
holiday year in addition to the statutory public and bank holidays. Such
holidays other than public and bank holidays will be taken within the period of
twelve months starting on the 1st April in each year (“the holiday year”) at
such times as are agreed with the Board of Directors of the Company and shall
accrue from month to month. No more than five (5) days holidays may be carried
forward and no payment will be made in respect of holidays which have not been
taken by the expiry of the holiday year.

 

6.             ABSENCE.  If the
Employee is absent from Employee’s duties as a result of sickness or injury
Employee will be entitled to payment of Employee’s basic salary under Section 3
(a) hereof (except to the extent to which Employee receives any social security
or other insurance benefits as a result of such absence) for a period, (whether
consecutive or in aggregate) of no more than six months in any period of twelve
months and shall thereafter only be entitled to payment of basic salary at the
discretion of the Company. The Employee shall furnish to the Company
satisfactory evidence of such incapacity and the cause thereof and any payments
hereunder shall be counted towards any statutory sick pay payable by the
Company under the Statutory Sick Pay Act 1994 and the Social Security
Contributions and Benefits Act 1992. The qualifying days for the purposes of
the Acts are Monday to Friday inclusive.

 

7.                                       CONFIDENTIALITY
AND NON-COMPETITION.

 

(a) The
Employee shall not during the continuance of the Agreement or at anytime after
its determination disclose to any persons whatsoever and shall use Employee’s
best endeavors to prevent the publication or disclosure of any of the secrets
confidential knowledge business data or processed or any financial or trading
information relating to the Company or any of its subsidiaries or associated
companies or its or their customers which may come into Employee’s knowledge
during or in the course of Employee’s employment hereunder.

 

(b) All
documents lists and other materials excluding director materials coming into
the possession of the Employee shall be the property of the Company and the
Employee shall hand over all or any of them to the Company on demand and in any
event upon the termination of the Agreement for whatever cause.

 

(c) Upon
termination of the Agreement for any cause, the Employee shall not without
written consent of the Company, for a period of two years from such termination
be either directly or indirectly in any capacity engaged employed or associated
with any person firm or Company engaged in any work or process or research
similar to that to which the Employee has been employed by the Company or with
which Employee’s work for the Company has made Employee familiar providing
always that this sub-clause shall not apply if the Agreement is terminated
under the provisions of Section 9 hereof.

 

(d) The
Employee further covenants that during such period Employee will not solicit or
approach any firm person or Company who was a customer of the Company during
the period of two years prior to termination of the Agreement with a view to
obtaining business or employment nor will Employee approach any person employed
by the Company during such period prior to termination with a view to
terminating the relationship of that employee with the Company during the said
period.

 

(e) The
restrictions in this Section 7 are separate and severable restrictions and are
considered by the parties to be reasonable in all the circumstances.  It is agreed that if any such restrictions
by themselves, or taken together, shall be adjudged to go beyond what is
reasonable in all the circumstances for the protection of the legitimate
interests of the Company but would be adjudged reasonable if part or parts of
the wording were deleted, or the length or the geographical coverage of the
restrictions reduced, the relevant restriction or restrictions shall apply with
such deletion(s) or reduction(s) as may be necessary to make it or them valid
and effective.

 

8.             TERMINATION FOR CAUSE. 
The Company shall be entitled to terminate this Agreement forthwith without
any notice or payment in lieu of notice and the Employee shall not be entitled
to any payment compensation or damages by reason of such termination if:

 

(a) The
Employee breaks any terms of this Agreement

 

 

(b) The
Employee neglects, omits or refuses to discharge the duties hereunder or to
comply with any lawful instruction given to Employee by the Board

 

(c) The
Employee is guilty of gross misconduct or is convicted of any criminal offense
involving dishonesty

 

(d) The
Employee is declared bankrupt or a receiving order is made against Employee or
Employee makes or attempts to make any composition with Employee’s creditors

 

(e) For a
period of 180 working days (whether consecutive or in aggregate) in any period
of one year the Employee has been absent from Employee’s duties as a result of
sickness or injury whether mental or physical

 

(f) The fixed
term of this Agreement, as set out in Section 1, expires and Company had not
previously agreed to a renewal of the Agreement.

 

9.             TERMINATION BY COMPANY. 
The Company can terminate this Agreement for any other reason by giving
to the Employee three (3) months notice in writing or payment in lieu of
notice.  In addition the Company may
require the Employee to retire from employment at the age of 65.

 

10.           TERMINATION BY
EMPLOYEE.  The Employee may terminate
this Agreement at any time by providing three (3) months written notice to the
Company.

 

11.            EMPLOYMENT
RIGHTS.  For the purposes of the
Employment Rights Act 1996 the Employee is hereby given written notice of the
following matters:

 

(a) There is a
pension scheme in existence in which the Employee is entitled to participate by
virtue of Employee’s employment hereunder full particulars of which are set out
in a booklet which has been given to the Employee (or which may be read during
normal working hours on application to the Company Secretary)

 

(b) The
Employee has been continuously employed by the Company since October 17, 1994.

 

(c) The
disciplinary rules, which apply to the Employee by virtue of Employee’s
employment hereunder, are specified in Appendix 1 to this Agreement.

 

(d) The
grievance procedure, which applies to the Employee by virtue of Employee’s
employment hereunder, are specified in a Appendix 2 to this Agreement.

 

(e)
Notwithstanding what is stated in Appendix 1 or 2,theEmployee should refer in
writing any grievance about Employee’s employment hereunder or any disciplinary
decision relating to the Employee, to any member of the Raining Data
Corporation Board and the reference will be dealt with by discussion and a
majority of those present at the relevant Board meeting at which the grievance
is discussed.

 

(f) The
Employee’s normal place of work will be within twenty miles of the Company’s
present headquarters at Mitford House, Benhall, Saxmundham, Suffolk, UK.  However, from time to time the Employee may
be required to travel within and outside the UK for business reasons.  Required travel may be worldwide in nature.

 

12.           NOTICES.  Notices
given in pursuance of this agreement shall be in writing and if to be given to
the Company delivered or dispatched by registered or recorded delivery post to
its registered office and if to be given to the Employee handed to other or
sent to Employee’s last known residential address in Britain by registered or
recorded delivery post. A notice dispatched by post is deemed to be given three
days’ after dispatch.

 

 

13.           PREVIOUS CONTRACTS.
The contractual terms in this Agreement shall be in substitution for all or any
existing contracts of employment entered into between Employee and the Company
which cease to have effect on the date Employee signs this Agreement as set out
below.

 

AS WITNESS THE HANDS OF THE EMPLOYEE AND AN
AUTHORIZED EMPLOYEE ON BEHALF OF THE COMPANY THE DAY AND YEAR FIRST BEFORE
WRITTEN

 

On behalf of Raining Data Corporation:

 

	
  /s/ Brian C. Bezdek

  	
   

  	
   /s/ Gwyneth M. Gibbs

  
	
  Name & Title

  	
  Gwyneth M. Gibbs

  
	
   

  	
   

  
	
   

  	
   

  
	
  May 13, 2004

  	
   

  	
  May 12, 2004

  
	
  Date

  	
  Date

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