Document:

ex10-3.htm

Exhibit
10.3

    

    THE SECURITIES REPRESENTED HEREBY MAY
NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE
PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED OR (II) THE COMPANY HAS
RECEIVED AN OPINION OF COUNSEL (IF REQUIRED BY THE COMPANY) REASONABLY
SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION
UNDER THE SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE
SECURITIES LAWS.

    

    THIS WARRANT SHALL BE VOID AFTER 5:00
P.M. EASTERN TIME ON JULY 25, 2018 (THE “EXPIRATION DATE”).

    

    No.
2008-__

    

    PROXIM
WIRELESS CORPORATION

    

    WARRANT
TO PURCHASE 625,000 SHARES OF

    COMMON
STOCK, PAR VALUE $0.01 PER SHARE

    

    For VALUE RECEIVED,
__________________________ or registered assigns (“Warrantholder”), is entitled
to purchase, subject to the provisions of this Warrant, from Proxim Wireless
Corporation, a Delaware corporation (“Company”), at any time not later than 5:00
P.M., Eastern time, on the Expiration Date (as defined above), at an exercise
price per share equal to $0.53 (subject to adjustment as described herein) (the
exercise price in effect being herein called the “Warrant Price”), Six Hundred
Twenty-Five Thousand (625,000) shares (“Warrant Shares”) of the Company’s Common
Stock, par value $0.01 per share (“Common Stock”).  The number of
Warrant Shares purchasable upon exercise of this Warrant and the Warrant Price
shall be subject to adjustment from time to time as described
herein.  This Warrant is being issued pursuant to the Securities
Purchase Agreement, dated as of July 25, 2008 (as amended, supplemented or
otherwise modified from time to time) (the “Purchase Agreement”), among the
Company and the initial holders of the Company Warrants (as defined
below).  Capitalized terms used herein have the respective meanings
ascribed thereto in the Purchase Agreement unless otherwise defined
herein.

    

    Section 1.  Registration.  The
Company shall maintain books for the transfer and registration of the
Warrant.  Upon the initial issuance of this Warrant, the Company shall
issue and register the Warrant in the name of the Warrantholder.

    

    Section 2.  Transfers.  As
provided herein, this Warrant may be transferred only pursuant to a registration
statement filed under the Securities Act of 1933, as amended (the “Securities
Act”), or an exemption from such registration.  Subject to such
restrictions, the Company shall transfer this Warrant from time to time upon the
books to be maintained by the Company for that purpose, upon surrender hereof
for transfer, properly endorsed or accompanied by appropriate instructions for
transfer and such other documents as may be reasonably required by the Company,
including, if required by the Company, an opinion of its counsel to the effect
that such transfer is exempt from the registration requirements of the
Securities Act, to establish

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    that such
transfer is being made in accordance with the terms hereof, and a new Warrant
shall be issued to the transferee and the surrendered Warrant shall be canceled
by the Company.

    

    Section 3.  Exercise of
Warrant.  Subject to the provisions hereof, the Warrantholder
may exercise this Warrant, in whole or in part, at any time prior to its
expiration upon surrender of this Warrant, together with delivery of a duly
executed Warrant exercise form, in the form attached hereto as Appendix A (the
“Exercise Agreement”) and payment by cash, certified check or wire transfer of
funds (or, in certain circumstances, by cashless
exercise as provided in Section 18 below) of the aggregate Warrant Price
for that number of Warrant Shares then being purchased, to the Company during
normal business hours on any business day at the Company’s principal executive
offices (or such other office or agency of the Company as it may designate by
notice to the Warrantholder).  The Warrant Shares so purchased shall
be deemed to be issued to the Warrantholder or the Warrantholder’s designee, as
the record owner of such shares, as of the close of business on the date on
which this Warrant shall have been surrendered (or the date evidence of loss,
theft or destruction thereof and security or indemnity satisfactory to the
Company has been provided to the Company), the Warrant Price shall have been
paid and the completed Exercise Agreement shall have been
delivered.  Certificates for the Warrant Shares so purchased shall be
delivered to the Warrantholder (or at the Company’s option and with the
Warrantholder’s consent, electronic shares shall be made available to the
Warrantholder via DWAC) within a reasonable time, not exceeding three (3)
business days (seven (7) business days if the Warrantholder does not consent to
DWAC delivery), after this Warrant shall have been so exercised.  The
certificates so delivered shall be in such denominations as may be requested by
the Warrantholder and shall be registered in the name of the Warrantholder or
such other name as shall be designated by the Warrantholder, as specified in the
Exercise Agreement.  If this Warrant shall have been exercised only in
part, then, unless this Warrant has expired, the Company shall, at its expense,
at the time of delivery of such certificates, deliver to the Warrantholder a new
Warrant representing the right to purchase the number of shares with respect to
which this Warrant shall not then have been exercised.  As used
herein, “business day” means a day, other than a Saturday or Sunday, on which
banks in New York City are open for the general transaction of
business.  Each exercise hereof shall constitute the re-affirmation by
the Warrantholder that the representations and warranties contained in Section 3
of the Purchase Agreement are true and correct in all material respects with
respect to the Warrantholder as of the time of such exercise.

    

    If (1) a certificate representing the
Warrant Shares is not delivered to the Warrantholder (or electronic shares are
not made available to the Warrantholder) within three (3) Business Days (or
seven (7) Business Days if appropriate pursuant to the first paragraph of this
Section 3) of the due exercise of this Warrant by the Warrantholder and (2)
prior to the time such certificate is received by the Warrantholder (or
electronic shares are so made available), the Warrantholder, or any third party
on behalf of the Warrantholder or for the Warrantholder’s account, purchases (in
an open market transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Warrantholder of shares represented by such
certificate (a “Buy-In”), then the Company shall pay in cash to the
Warrantholder (for costs incurred either directly by such Warrantholder or on
behalf of a third party) the amount by which the total purchase price paid for
Common Stock as a result of the Buy-In (including brokerage commissions, if any)
exceeds the proceeds received by such Warrantholder as a result of the sale to
which such Buy-In relates.

    
      
         

      

      
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    The
Warrantholder shall provide the Company written notice indicating the amounts
payable to the Warrantholder in respect of the Buy-In.

    

    Section 4.  Compliance with the
Securities Act of 1933. Except as provided in the Purchase Agreement, the
Company may cause the legend set forth on the first page of this Warrant to be
set forth on each Warrant, and a similar legend on any security issued or
issuable upon exercise of this Warrant, unless counsel for the Company is of the
opinion as to any such security that such legend is unnecessary.

    

    Section 5.  Payment of
Taxes.  The Company will pay any documentary stamp taxes
attributable to the initial issuance of Warrant Shares issuable upon the
exercise of the Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a
name other than that of the Warrantholder in respect of which such shares are
issued, and in such case, the Company shall not be required to issue or deliver
any certificate for Warrant Shares or any Warrant until the person requesting
the same has paid to the Company the amount of such tax or has established to
the Company’s reasonable satisfaction that such tax has been
paid.  The Warrantholder shall be responsible for income taxes due
under federal, state or other law, if any such tax is due.

    

    Section 6.  Mutilated or Missing
Warrants.  In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue in exchange and substitution of
and upon surrender and cancellation of the mutilated Warrant, or in lieu of and
substitution for the Warrant lost, stolen or destroyed, a new Warrant of like
tenor and for the purchase of a like number of Warrant Shares, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft
or destruction of the Warrant, and with respect to a lost, stolen or destroyed
Warrant, reasonable indemnity or bond with respect thereto, if requested by the
Company.

    

    Section 7.  Reservation of Common
Stock.  The Company hereby represents and warrants that there
have been reserved, and the Company shall at all applicable times keep reserved
until issued (if necessary) as contemplated by this Section 7, out of the
authorized and unissued shares of Common Stock, sufficient shares to provide for
the exercise of the rights of purchase represented by this
Warrant.  The Company agrees that all Warrant Shares issued upon due
exercise of the Warrant shall be, at the time of delivery of the certificates
for such Warrant Shares, duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock of the Company.

    

    Section 8.  Adjustments.  Subject
and pursuant to the provisions of this Section 8, the Warrant Price and number
of Warrant Shares subject to this Warrant shall be subject to adjustment from
time to time as set forth hereinafter.

    

    (a)           If
the Company shall, at any time or from time to time while this Warrant is
outstanding, pay a dividend or make a distribution on its Common Stock in shares
of Common Stock, subdivide its outstanding shares of Common Stock into a greater
number of shares or combine its outstanding shares of Common Stock into a
smaller number of shares or issue by reclassification of its outstanding shares
of Common Stock any shares of its capital stock

    
      
         

      

      
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    (including
any such reclassification in connection with a consolidation or merger in which
the Company is the continuing corporation), then (i) the Warrant Price in effect
immediately prior to the date on which such change shall become effective shall
be adjusted by multiplying such Warrant Price by a fraction, the numerator of
which shall be the number of shares of Common Stock outstanding immediately
prior to such change and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after giving effect to such change and
(ii) the number of Warrant Shares purchasable upon exercise of this Warrant
shall be adjusted by multiplying the number of Warrant Shares purchasable upon
exercise of this Warrant immediately prior to the date on which such change
shall become effective by a fraction, the numerator of which shall be the
Warrant Price in effect immediately prior to the date on which such change shall
become effective and the denominator of which shall be the Warrant Price in
effect immediately after giving effect to such change, calculated in accordance
with clause (i) above.  Such adjustments shall be made successively
whenever any event listed above shall occur.

    

    (b)           If
any capital reorganization, reclassification of the capital stock of the
Company, consolidation or merger of the Company with another corporation in
which the Company is not the survivor, or sale, transfer or other disposition of
all or substantially all of the Company’s assets to another corporation shall be
effected, then, as a condition of such reorganization, reclassification,
consolidation, merger, sale, transfer or other disposition, lawful and adequate
provision shall be made whereby each Warrantholder shall thereafter have the
right to purchase and receive upon the basis and upon the terms and conditions
herein specified and in lieu of the Warrant Shares immediately theretofore
issuable upon exercise of the Warrant, such shares of stock, securities or
assets as would have been issuable or payable with respect to or in exchange for
a number of Warrant Shares equal to the number of Warrant Shares immediately
theretofore issuable upon exercise of the Warrant, had such reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition not
taken place, and in any such case appropriate provision shall be made with
respect to the rights and interests of each Warrantholder to the end that the
provisions hereof (including, without limitation, provision for adjustment of
the Warrant Price) shall thereafter be applicable, as nearly equivalent as may
be practicable in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise hereof.  The Company shall
not effect any such consolidation, merger, sale, transfer or other disposition
unless prior to or simultaneously with the consummation thereof the successor
corporation (if other than the Company) resulting from such consolidation or
merger, or the corporation purchasing or otherwise acquiring such assets or
other appropriate corporation or entity shall assume the obligation to deliver
to the Warrantholder, at the last address of the Warrantholder appearing on the
books of the Company, such shares of stock, securities or assets as, in
accordance with the foregoing provisions, the Warrantholder may be entitled to
purchase, and the other obligations under this Warrant.  The
provisions of this paragraph (b) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, sales, transfers or
other dispositions.

    

    (c)           In
case the Company shall fix a payment date for the making of a distribution to
all holders of Common Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing
corporation) of evidences of indebtedness or assets (other than cash dividends
or cash distributions payable out of

    
      
         

      

      
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    consolidated
earnings or earned surplus or dividends or distributions referred to in Section
8(a)), or subscription rights or warrants, the Warrant Price to be in effect
after such payment date shall be determined by multiplying the Warrant Price in
effect immediately prior to such payment date by a fraction, the numerator of
which shall be the total number of shares of Common Stock outstanding multiplied
by the Market Price (as defined below) per share of Common Stock immediately
prior to such payment date, less the fair market value (as determined by the
Company’s Board of Directors in good faith) of said assets or evidences of
indebtedness so distributed, or of such subscription rights or warrants, and the
denominator of which shall be the total number of shares of Common Stock
outstanding multiplied by such Market Price per share of Common Stock
immediately prior to such payment date.  “Market Price” as of a
particular date (the “Valuation Date”) shall mean the following: (a) if the
Common Stock is then listed on the Nasdaq Global Market or the Nasdaq Capital
Market (“Nasdaq”) or any other national stock exchange, the closing sale price
of one share of Common Stock on such exchange on the last trading day prior to
the Valuation Date; (b) if the Common Stock is then quoted on the National
Association of Securities Dealers, Inc. OTC Bulletin Board (the “Bulletin
Board”) or a similar quotation system or association, the closing sale price of
one share of Common Stock on the Bulletin Board or such other quotation system
or association on the last trading day prior to the Valuation Date or, if no
such closing sale price is available, the average of the high bid and the low
asked price quoted thereon on the last trading day prior to the Valuation Date;
or (c) if the Common Stock is not then listed on a national stock exchange or
quoted on the Bulletin Board or such other quotation system or association, the
fair market value of one share of Common Stock as of the Valuation Date, as
determined in good faith by the Board of Directors of the Company and the
Warrantholder.  If the Common Stock is not then listed on a national
securities exchange, the Bulletin Board or such other quotation system or
association, the Board of Directors of the Company shall respond promptly, in
writing, to an inquiry by the Warrantholder prior to the exercise hereunder as
to the fair market value of a share of Common Stock as determined by the Board
of Directors of the Company.  In the event that the Board of Directors
of the Company and the Warrantholder are unable to agree upon the fair market
value in respect of subpart (c) of this paragraph, the Company and the
Warrantholder shall jointly select an appraiser, who is experienced in such
matters.  The decision of such appraiser shall be final and
conclusive, and the cost of such appraiser shall be borne equally by the Company
and the Warrantholder.  Such adjustment shall be made successively
whenever such a payment date is fixed.

    

    (d)           An
adjustment to the Warrant Price shall become effective immediately after the
payment date in the case of each dividend or distribution and immediately after
the effective date of each other event which requires an
adjustment.

    

    (e)           In
the event that, as a result of an adjustment made pursuant to this Section 8,
the Warrantholder shall become entitled to receive any shares of capital stock
of the Company other than shares of Common Stock, the number of such other
shares so receivable upon exercise of this Warrant shall be subject thereafter
to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Warrant Shares contained in
this Warrant.

    

    (f)           To
the extent permitted by applicable law and the listing requirements of any stock
market or exchange on which the Common Stock is then listed, the Company
from

    
      
         

      

      
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    time to
time may decrease the Warrant Price by any amount for any period of time if the
period is at least twenty (20) days, the decrease is irrevocable during the
period and the Board shall have made a determination that such decrease would be
in the best interests of the Company, which determination shall be
conclusive.  Whenever the Warrant Price is decreased pursuant to the
preceding sentence, the Company shall provide written notice thereof to the
Warrantholder at least five (5) days prior to the date the decreased Warrant
Price takes effect, and such notice shall state the decreased Warrant Price and
the period during which it will be in effect.

    

    Section 9.  Fractional
Interest.  The Company shall not be required to issue fractions
of Warrant Shares upon the exercise of this Warrant.  If any
fractional share of Common Stock would, except for the provisions of the first
sentence of this Section 9, be deliverable upon such exercise, the Company, in
lieu of delivering such fractional share, shall pay to the exercising
Warrantholder an amount in cash equal to the Market Price of such fractional
share of Common Stock on the date of exercise.

    

    Section 10.  Intentionally
Omitted.

    

    Section 11.  Benefits.  Nothing
in this Warrant shall be construed to give any person, firm or corporation
(other than the Company and the Warrantholder (and its registered assigns)) any
legal or equitable right, remedy or claim, it being agreed that this Warrant
shall be for the sole and exclusive benefit of the Company and the Warrantholder
(and its registered assigns).

    

    Section 12.  Notices to
Warrantholder.  Upon the happening of any event requiring an
adjustment of the Warrant Price, the Company shall promptly give written notice
thereof to the Warrantholder at the address appearing in the records of the
Company, stating the adjusted Warrant Price and the adjusted number of Warrant
Shares resulting from such event and setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is
based.  Failure to give such notice to the Warrantholder or any defect
therein shall not affect the legality or validity of the subject
adjustment.

    

    Section 13.  Identity of Transfer
Agent.  The Transfer Agent for the Common Stock is Registrar
& Transfer Company.  Upon the appointment of any subsequent
transfer agent for the Common Stock or other shares of the Company’s capital
stock issuable upon the exercise of the rights of purchase represented by the
Warrant, the Company will mail to the Warrantholder a statement setting forth
the name and address of such transfer agent.

    

    Section 14.  Notices.  Unless
otherwise provided, any notice required or permitted under this Warrant shall be
given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon
such delivery, (ii) if given by telex or facsimile, then such notice shall be
deemed given upon receipt of confirmation of complete transmittal, (iii) if
given by mail, then such notice shall be deemed given upon the earlier of (A)
receipt of such notice by the recipient or (B) three days after such notice is
deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be
deemed given one business day after delivery to such carrier.  All
notices shall be addressed as follows: if to the Warrantholder, at its address
as set forth in the Company’s books and records and, if to the Company, at the
address as

    
      
         

      

      
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    follows,
or at such other address as the Warrantholder or the Company may designate by
ten days’ advance written notice to the other:

    

    If to the
Company:

    

    Proxim
Wireless Corporation

    1561
Buckeye Drive

    Milpitas,
CA 95035

    Attention:
Pankaj Manglik

    Fax:  (408)
383-7680

    

    With a
copy to:

    

    Proxim
Wireless Corporation

    881 North
King Street, Suite 100

    Northamption,
Massachusetts 01060

    Attention:  David
L. Renauld

    Fax:  (413)
584-2685

    

    Section 15.  Intentionally
Omitted.

    

    Section 16.  
Successors.  All the covenants and provisions hereof by or for
the benefit of the Warrantholder shall bind and inure to the benefit of its
respective successors and assigns hereunder.

    

    Section 17.   Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial.  This Warrant shall be
governed by, and construed in accordance with, the internal laws of the State of
New York, without reference to the choice of law provisions
thereof.  The Company and, by accepting this Warrant, the
Warrantholder, each irrevocably submits to the exclusive jurisdiction of the
courts of the State of New York located in New York County and the United States
District Court for the Southern District of New York for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Warrant
and the transactions contemplated hereby.  Service of process in
connection with any such suit, action or proceeding may be served on each party
hereto anywhere in the world by the same methods as are specified for the giving
of notices under this Warrant.  The Company and, by accepting this
Warrant, the Warrantholder, each irrevocably consents to the jurisdiction of any
such court in any such suit, action or proceeding and to the laying of venue in
such court.  The Company and, by accepting this Warrant, the
Warrantholder, each irrevocably waives any objection to the laying of venue of
any such suit, action or proceeding brought in such courts and irrevocably
waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. EACH OF THE COMPANY AND, BY ITS
ACCEPTANCE HEREOF, THE WARRANTHOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL
BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT
COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

    
      
         

      

      
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    Section 18.  Cashless
Exercise.  The Warrantholder may elect to receive, without the
payment by the Warrantholder of the aggregate Warrant Price in respect of the
shares of Common Stock to be acquired, shares of Common Stock of equal value to
the value of this Warrant, or any specified portion hereof, by the surrender of
this Warrant (or such portion of this Warrant being so exercised) together with
a Net Issue Election Notice, in the form annexed hereto as Appendix B, duly
executed, to the Company.  Thereupon, the Company shall issue to the
Warrantholder such number of fully paid, validly issued and nonassessable shares
of Common Stock as is computed using the following formula:

    

    X = Y (A -
B)

         A

    

    where

    

    X
=           the number of
shares of Common Stock to which the Warrantholder is entitled upon such cashless
exercise;

    

    Y
=           the total
number of shares of Common Stock covered by this Warrant for which the
Warrantholder has surrendered purchase rights at such time for cashless exercise
(including both shares to be issued to the Warrantholder and shares as to which
the purchase rights are to be canceled as payment therefor);

    

    A
=           the “Market
Price” of one share of Common Stock as at the date the net issue election is
made; and

    

    B
=           the Warrant
Price in effect under this Warrant at the time the net issue election is
made.

    

    Section 19.  Intentionally
Omitted.

    

    Section 20.  No Rights as
Stockholder.  Prior to the exercise of this Warrant, the
Warrantholder shall not have or exercise any rights as a stockholder of the
Company by virtue of its ownership of this Warrant.

    

    Section 21.  Amendment;
Waiver.  This Warrant is one of two Warrants of like tenor
issued by the Company pursuant to the Purchase Agreement and initially covering
an aggregate of 1,250,000 shares of Common Stock (collectively, the “Company
Warrants”).  Any term of this Warrant may be amended or waived
(including the adjustment provisions included in Section 8 of this Warrant) upon
the written consent of the Company and the holders of Company Warrants
representing at least 50% of the number of shares of Common Stock then subject
to all outstanding Company Warrants (the “Majority Holders”); provided, that (x)
any such amendment or waiver must apply to all Company Warrants and (y) the
number of Warrant Shares subject to this Warrant, the Warrant Price and the
Expiration Date may not be amended, and the right to exercise this Warrant may
not be altered or waived, without the written consent of the
Warrantholder.

    
      
         

      

      
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    Section 22. Section
Headings.  The section headings in this Warrant are for the
convenience of the Company and the Warrantholder and in no way alter, modify,
amend, limit or restrict the provisions hereof.

     

     

     

     

     

     

    
      
         

      

      
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               IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as of
the 25th day of July, 2008.

    

    
      	 
      	
              PROXIM
      WIRELESS CORPORATION

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            	 
      
	 
      	
              Title:

            	 
      

    

    

    

    
      
         

      

      
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    APPENDIX
A

    PROXIM
WIRELESS CORPORATION

    WARRANT
EXERCISE FORM

    

    To Proxim
Wireless Corporation:

    

    The undersigned hereby irrevocably
elects to exercise the right of purchase represented by the within Warrant
(“Warrant”) for, and to purchase thereunder by the payment of the Warrant Price
and surrender of the Warrant, _______________ shares of Common Stock (“Warrant
Shares”) provided for therein, and requests that certificates for the Warrant
Shares be issued as follows:

    

    
      	 
      	 
      	 
      
	 
      	
              Name

            	 
      
	 
      	 
      	 
      
	 
      	
              Address

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Federal
      Tax ID or Social Security No.

            	 
      

    

    

    and delivered
by       (certified mail to the above address,
or

         (electronically
(provide DWAC Instructions:________________ ), or

                                                     
   (other (specify):
________________________________________).

    

    and, if
the number of Warrant Shares shall not be all the Warrant Shares purchasable
upon exercise of the Warrant, that a new Warrant for the balance of the Warrant
Shares purchasable upon exercise of this Warrant be registered in the name of
the undersigned Warrantholder or the undersigned’s Assignee as below indicated
and delivered to the address stated below.

    

    

    Dated:
___________________, ____

    

    Note:  The
signature must correspond
with                                                                                                
           
Signature:______________________________

    

    
      	
              the
      name of the Warrantholder as written

            	 
      	 
      
	
              on
      the first page of the Warrant in every

            	 
      	 
      
	
              particular,
      without alteration or enlargement

            	 
      	
              Name
      (please print)

            
	
              or
      any change whatever, unless the Warrant

            	 
      	 
      
	
              has
      been assigned.

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              Address

            
	 
      	 
      	 
      
	 
      	 
      	
              Federal
      Identification or

            
	 
      	 
      	
              Social
      Security No.

            

    

    

    

    
      
         

      

      
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                Assignee:

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      

      

    
      
         

      

      
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    APPENDIX
B

    PROXIM
WIRELESS CORPORATION

    NET ISSUE
ELECTION NOTICE

    

    

    To:
Proxim Wireless Corporation

    

    Date:[_________________________]

    

    

    The
undersigned hereby elects under Section 18 of this
Warrant to surrender the right to purchase [____________] shares of Common Stock
pursuant to this Warrant and hereby requests the issuance of [_____________]
shares of Common Stock.  The certificate(s) for the shares issuable
upon such net issue election shall be issued in the name of the undersigned or
as otherwise indicated below.

    

    

    

    
      	 
      	 
      
	
              Signature

            	 
      
	 
      	 
      
	 
      	 
      
	
              Name
      for Registration

            	 
      
	 
      	 
      
	 
      	 
      
	
              Mailing
      Address

            	 
      

    

    

     

    - 13 -Exhibit 10.1

COMMUTATION AGREEMENT

          This Commutation Agreement (“Agreement”) is entered into as of July 25, 2008 (the “Effective Date”) by and between XL Financial Assurance Ltd., a Bermuda exempted company (“XLFA”), and RAM Reinsurance Company
Ltd., a Bermuda exempted company (“RAM Re”). XLFA and RAM Re are hereinafter referred to collectively as the “Parties” and individually as a
“Party”.

          WHEREAS, the Parties entered into the Amended and Restated Variable Comprehensive Automatic Treaty Retrocession Agreement, dated as of March 4, 2008 (the “Variable Retrocession
Agreement”), between XLFA and RAM Re, the Restricted Cession Agreement, dated as of April 19, 2004 (the “Restricted Cession Agreement”),
between XLFA and RAM Re and the Master Facultative Retrocession Agreement, effective as of September 15, 2003  (the “Master Retrocession Agreement” and collectively with the
Variable Retrocession Agreement and the Restricted Cession Agreement, the “Retrocession Agreements”), between XLFA and RAM Re; 

          WHEREAS, the Parties now wish, effective as of the Effective Date, to fully and finally terminate, release, determine and fully and finally
settle, commute and extinguish all their respective obligations and liabilities, known and unknown, fixed and contingent, under, arising out of, in connection with and/or pursuant to the Retrocession Agreements; and 

          WHEREAS, in connection herewith, the Parties desire to fully and finally settle any and all obligations between them with respect to the Retrocession Agreements. 

          NOW, THEREFORE, in consideration of the covenants, conditions, promises and releases contained herein, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as
follows: 

          1.      Consideration. In consideration of the release and discharge set forth in Section 2 below, RAM Re hereby agrees to pay to XLFA the sum of ninety-four million four
hundred thousand United States dollars (US$94,400,000.00) (hereinafter referred to as the “Commutation Amount”) by no later than four (4) Business Days after the Effective Date
in cash by wire transfer pursuant to the wire transfer instructions set out in Schedule A to this Agreement. XLFA shall accept the Commutation Amount in full, final and complete settlement of any and all amounts due or claimed to be due by RAM Re to
XLFA, or any of XLFA’s heirs, administrators, predecessors, successors and assigns, including, but not limited to, any Affiliates of XLFA, relating to, or arising out of, or in any way related to, the Retrocession Agreements, including,
without limitation, any and all amounts due or claimed to be due relating to, or arising out of, or in any way related to any policies ceded, or purported to have been ceded, under the Retrocession Agreements (the “Policies”). “Affiliates” means, with respect to either Party, any person or entity that (at the time when the determination is to
be made) directly, or indirectly

through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, such Party.  As used in the foregoing sentence, the term “control” (including, with correlative meaning, the terms
“controlling,” “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to vote ten percent (10%) or more of the voting securities of such Party.
“Business Day” means any day other than a Saturday or Sunday or any other day on which commercial banking institutions in the Islands of Bermuda are authorized or obligated by
law, executive order or government decree to be closed.

          2.     Release.  Each of the Parties, on behalf of itself and its Affiliates and their respective agents, representatives, officers, directors, employees, advisors, attorneys
and auditors (collectively, “Representatives”), and their respective heirs, administrators, predecessors, successors and assigns and each of them unconditionally releases,
acquits and forever discharges the other Party and its Affiliates and their respective Representatives, and their respective heirs, administrators, predecessors, successors and assigns, from and against any and all past, present and future claims,
demands, debts, obligations, liabilities, payments, damages, adjustments, executions, offsets, sums of money, accounts, reckonings, bonds, bills, costs, expenses, actions, causes of action, controversies, covenants, contracts, agreements, promises,
judgments, and/or losses, of every nature, kind, character, and description whatsoever, whether grounded in law or in equity, in contract, tort, or otherwise (including, without limitation, any claims based on fraud, bad faith, or extra-contractual
liabilities), all whether known or unknown, which such Party now owns, holds or has, or at any time heretofore, owned, held or had, or which such Party hereafter can, shall or may own, hold or have against the other Party, and each of them, arising
out of, resulting from, or in any way related to the Retrocession Agreements, including, without limitation, the Policies, it being the intent of the Parties that this release shall operate to fully and finally settle and extinguish any and all
obligations and liabilities arising out of, resulting from, or in way relating to the Retrocession Agreements, including, without limitation, the Policies. 

          3.     No Challenge. Neither Party, nor such Party’s heirs, administrators, predecessors, successors or assigns, including, but not limited
to, such Party’s Affiliates, shall challenge or contest the validity or enforceability of this Agreement or any of the provisions herein. 

          4.     Representations and Warranties.

                  (a.)       Mutual Representations and Warranties.  Each of the Parties expressly severally represents and warrants
to the other Party that:  (i) such Party is a company, duly organized, validly existing and in good standing under the laws of the Islands of Bermuda; (ii) such Party is duly licensed as an insurance company by the Bermuda Monetary Authority (the
“BMA”); (iii) the execution and delivery of, giving effect to, and performance of, such Party’s obligations under this Agreement and the transactions contemplated hereby
are fully authorized by such Party, including such Party’s Board of Directors; (iv) the person executing this Agreement on behalf of such Party has the necessary and appropriate authority to do so; (v) this Agreement constitutes a valid and
binding obligation of such Party; (vi) such Party derives a 

2

substantial economic benefit from this Agreement and the transactions contemplated hereby and will not assert a lack of fair or sufficient consideration for entering into this Agreement; (vii) there are no pending agreements,
transactions or negotiations to which such Party is a party that would render this Agreement or any part thereof void, avoidable or unenforceable; (viii) there is no authorization, consent or approval of any government or regulatory authority that
is required to make this Agreement valid, enforceable in accordance with its terms and binding upon such Party; (ix) no claim or account being paid or settled hereunder has previously been assigned or transferred to another person or entity; (x) no
order has been made or petition presented or other step taken for such Party to be wound up or for the appointment of a liquidator, provisional liquidator, receiver, administrator or other like office holder under the laws of any jurisdiction
whatsoever; (xi) such Party has not made an election to be treated as a United States company pursuant to Section 953(d) of the Internal Revenue Code of 1986, as amended from time to time; (xii) the execution and delivery of, giving effect to, and
performance of, such Party’s obligations under this Agreement do not conflict with, result in a breach or violation or imposition of any lien, charge or encumbrance upon any property or assets of such Party or its Affiliates pursuant to, the
charter or bye-laws or other organizational document of such Party or its Affiliates or the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or
instrument to which such Party or any of its Affiliates is a party or bound or to which such Party’s of any of its Affiliates’ property is subject; and (xiii) the execution and delivery of, giving effect to, and performance of, such
Party’s obligations under this Agreement do not contravene, or fail to comply with, any Applicable Laws. “Applicable Laws” means any Bermuda or foreign law (including
common law), statute, ordinance, rule, regulation, order, writ, injunction, judgment, permit, governmental agreement or decree applicable to a Party or any of such Party’s subsidiaries, properties, assets, or to such Party’s
Representatives in their capacity as such. 

                  (b.)     Representations and Warranties of XLFA.

                  (i)       Save in respect of Merrill Lynch ABS and/or CDO transactions originated by XL Capital Assurance Inc.  and retroceded to RAM Re, XLFA
expressly represents and warrants to RAM Re that neither XLFA nor XL Capital Assurance Inc. has, as of the Effective Date, executed, or agreed in principle to enter into, any agreement pursuant to which any Policy directly or indirectly insuring,
covering or otherwise related to, risks in connection with swaps or other derivative contracts (including, without limitation, credit default swaps and other credit derivatives, options or futures), structured notes, asset backed securities, or
collateralized debt obligations will be commuted, restructured or otherwise compromised; and 

                  (ii)      XLFA
represents and warrants that the written loss reserve information it has provided
to RAM Re as at the Effective Date is the same  information as the management
of XLFA has provided as its loss reserves for the quarter ended June 30, 2008
to its Board of Directors and to its independent auditors as at the Effective
Date. 

3

          5.     Covenants.  Notwithstanding any other provision in this Agreement to the contrary, XLFA shall obtain from the BMA an order or letter that
this Agreement and the transactions contemplated hereby do not violate applicable Bermuda law or regulations and that the BMA approves, or does not disapprove of, this Agreement and the transactions contemplated hereby, and XLFA shall promptly
deliver to RAM Re such order, letter or other written evidence prior to the time by which RAM Re shall be obligated to pay to XLFA the Commutation Amount. 

          6.     Public Announcements. Neither Party nor any of their respective Affiliates shall issue or cause the dissemination of any press release or other public announcements or
statements with respect to this Agreement or the transactions contemplated hereby without the consent of the other Party, which consent will not be unreasonably withheld, except as either Party reasonably believes is required by Applicable Law or by
any listing agreement with a national securities exchange or trading market (and in such case shall use all reasonable efforts to consult the other Party prior to such release or statement). XLFA and RAM Re agree to consult with each other before
issuing any press release or making any public statement with respect to this Agreement or the transactions contemplated hereby and, except as may be required by Applicable Law, will not issue any such press release or make any such public statement
prior to such consultation.

          7.     Hold Harmless and Indemnification.  Each Party shall indemnify and hold harmless the other Party from and against damages, losses, claims
(whether or not the other Party is a party to any action or proceeding that gives rise to any indemnification obligation), actions, suits, demands, judgments, liabilities (including penalties), obligations or disbursements of any kind or nature
whatsoever, and related costs and expenses (including reasonable attorneys’ fees and disbursements), awarded against or incurred by the other Party arising out of or as a result of (A) any representation or warranty made by a Party hereunder
having been untrue or incorrect in any material respect when made or deemed to have been made, or (B) any breach by a Party of any of its covenants, agreements or obligations hereunder. 

           8.     Arbitration.  Any dispute, controversy or claim arising out of, relating to or in connection with this Agreement, including, without
limitation, any dispute regarding the termination, performance or breach of this Agreement, or any statutory claims relating hereto, shall be finally settled by arbitration administered by the AIDA Reinsurance and Insurance Arbitration Society
(“ARIAS”).  The arbitration shall be conducted in accordance with the ARIAS Arbitration Guidelines in effect at the time of the arbitration, except as they may be modified herein
or by agreement of the Parties to the arbitration. 

                  (a)      The place of arbitration shall be Hamilton, Bermuda. 

                  (b)      The arbitration shall be conducted by one (1) arbitrator (the “Arbitrator”), who shall be a disinterested third party with
significant experience in reinsurance and 

4

commutation transactions or disputes, who is not employed by, a consultant to, or otherwise affiliated with, and has at no time been employed by, a consultant to, or otherwise affiliated with, either Party or their respective
Affiliates. The Parties shall appoint the Arbitrator within thirty (30) days following the transmittal of written demand of either Party to arbitrate any dispute arbitrable under this Agreement. If the Parties hereto shall fail to appoint an
arbitrator, as herein provided, within thirty (30) days following the transmittal of written demand of either Party to arbitrate any dispute arbitrable under this Agreement, then the President of the ARIAS shall appoint the Arbitrator. The
Arbitrator will not be bound by formal rules of legal procedure. 

                  (c)      The award rendered by the Arbitrator shall be final and binding on the Parties to the arbitration. The award shall be rendered by the Arbitrator in the form of a written reasoned opinion, and
shall not be appealable to the Arbitrator nor in a court of law. In no event shall any award include special, indirect, consequential or punitive damages. Judgment on the award may be entered in any court of competent jurisdiction. 

                  (d)      To initiate arbitration, a Party shall send a notice demanding arbitration to the other Party.

                  (e)      After a notice demanding arbitration is received and the Arbitrator is appointed, each Party is required immediately to disclose to the other Party all documents in its control pertaining to
any of the disputes, controversies or claims contained in the notice demanding arbitration or as directed by the Arbitrator. Each Party to the arbitration shall have the right to promptly obtain written interrogatories from, and depositions of, any
persons possessing knowledge or cognizance of the facts relevant to the disputes, controversies or claims contained in the notice demanding arbitration or as directed by the Arbitrator. 

                  (f)      Each Party shall be responsible for the fees and costs of the Arbitrator and any costs and expenses of the other Party in connection with any arbitration hereunder in the same proportion as (x)
the aggregate dollar amount of items submitted to the Arbitrator that are unsuccessfully disputed by such Party (as finally determined by the Arbitrator) bears to (y) the aggregate dollar amount of disputed items so submitted. 

          9.     Expenses.  All expenses incurred in connection with this Agreement (including the fees and disbursements of legal, actuarial, accounting
and other advisors incurred on or before the Effective Date) shall be paid by the Party incurring such expenses. 

          10.   Waivers
and Amendments.  This Agreement may be amended,
superseded, cancelled, renewed or extended, and the terms and conditions hereof
 may be waived, only by a written instrument signed by both of the Parties, or
in the case of a waiver, by the Party waiving compliance. No delay on the part
of any Party in exercising any right, power or privilege hereunder shall operate
as a  waiver thereof, nor shall any waiver on the part of either Party of 

5

any right, power or privilege, nor any single or partial exercise of any right, power or privilege, preclude any further exercise thereof or the exercise of any other such right, power or privilege. 

          11.   Notices. Any notices given pursuant to this Agreement shall be in writing and shall be sent, postage pre-paid by registered or certified
mail or by overnight courier or by confirmed facsimile transmission, such facsimile transmission to be accompanied by the mailing, postage pre-paid by registered or certified mail or overnight courier, of a hard copy of any such facsimile
transmission to the other Party at the address or facsimile number set forth below. 

  	To XLFA: 
	 
	XL Financial Assurance
          Ltd. 
	A.S. Cooper Building 
	26 Reid Street, 4th
          Floor 
	Hamilton HM 11 
	Bermuda 
	Attention: Michael
          Rego 
	Fax: 441-296-4351 
	Tel: 441-279-7483 
	 
	To RAM Re: 
	 
	RAM Re House 
	46 Reid Street 
	Hamilton, HM 12, Bermuda 
	Attention: Vern Endo 
	Fax: 441-296-6509 
	Tel: 441-298-2113 

          12.   Further Assurances. The Parties agree to do or cause to be done such further acts and things and deliver or cause to be delivered to the
other Parties such additional assignments, agreements, powers and instruments as such Parties may reasonably require or deem advisable to carry into effect the purposes of this Agreement or to better assure and confirm unto the other Party the
rights, powers and remedies of each hereunder. 

          13.   Successors and Assigns. The rights, duties and obligations set forth herein shall inure to the benefit of and be binding upon XLFA and RAM Re and their respective
successors and permitted assigns and is not intended to confer any rights or benefits upon persons or entities other than the foregoing entities.

6

          14.   Governing Law and Jurisdiction. The validity and interpretation of this Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the Islands of Bermuda. 

          15.   Severability of Provisions. If it is found in a final judgment by the Arbitrator or a court of competent jurisdiction (not subject to
further appeal) that any term or provision hereof is invalid or unenforceable, (i) the remaining terms and provisions hereof shall be unimpaired and shall remain in full force and effect and (ii) the invalid or unenforceable provision or term shall
be replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of such invalid or unenforceable term or provision. 

          16.   Entire Agreement; Superseding Definitive Agreement. This Agreement embodies the entire agreement and understanding of the Parties and
supersedes any and all prior agreements, arrangements and undertakings relating to the matters provided for herein.  No alteration, waiver, amendment, change or supplement hereto shall be binding or effective unless the same is set forth in writing
signed by a duly authorized representative of RAM Re and XLFA.

          17.   Counterparts. For the convenience of the Parties, any number of counterparts of this Agreement may be executed by the Parties. Each such
counterpart shall be, and shall be deemed to be, an original instrument, but all such counterparts taken together shall constitute one and the same Agreement. 

          18.   Investigation.  The Parties acknowledge that they have entered into this Agreement in reliance upon their own independent investigation and analysis and not on the
basis of any representation or warranty by the other Parties hereto other than those representations and warranties set forth in this Agreement. 

[The Remainder of this Page Has Been Intentionally Left Blank.]

 

 

 

 

 

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          IN WITNESS WHEREOF the Parties, by their respective duly authorized officers, have executed this Agreement as of the date set forth above. 

	 
	
XL FINANCIAL ASSURANCE LTD.  
	   
	   
	
By:  	
/s/ Michael Rego  
	
Name: Michael Rego  
	
Title:    Chief Operating Officer  
	   
	   
	   
	
RAM REINSURANCE COMPANY LTD.  
	   
	   
	
By:  	
/s/ Vernon M. Endo  
	
Name: Vernon M. Endo  
	
Title:    President and Chief Executive Officer  

 

 

 

 

 

 

Schedule A 

Wire Transfer Instructions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

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