Document:

exv10w94

 

Exhibit 10.94

WARRANT

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR ANY STATE SECURITIES LAW. NEITHER THIS WARRANT NOR ANY WARRANT SHARES ISSUABLE
UPON EXERCISE HEREOF NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE SOLD,
ASSIGNED, OR TRANSFERRED EXCEPT IN COMPLIANCE WITH THE ACT AND APPLICABLE STATE SECURITIES
LAWS.

W-2005-1

INSIGNIA SOLUTIONS PLC

WARRANT

Original Issue Date:
February 10, 2005

     This Warrant (“Warrant”) is issued in connection with and pursuant to that
certain Securities Subscription Agreement (the “Subscription Agreement”) dated as of
February 10, 2005, by and between INSIGNIA SOLUTIONS PLC, a company incorporated under the
laws of England and Wales (the “Company”) and FUSION CAPITAL FUND II, LLC (the “Buyer”).

     FOR VALUE RECEIVED, the Buyer, the registered holder hereof, or its permitted assigns
(the “Holder”), is entitled to purchase from the Company, during the period specified in
this Warrant, 2,000,000 at
the greater of the U.S. Dollar equivalent of 20.5 UK pence or US$0.60 (subject to
adjustment as hereinafter provided) fully paid and non-assessable American depository
shares (each an “ADS” and collectively, the “ADSs”) of the Company at the purchase price
per ADS provided in Section 1.2 of this Warrant (the “Warrant Exercise Price”), all subject
to the terms and conditions set forth in this Warrant. Each ADS represents one ordinary
share, 20 UK pence per share nominal value, of the Company (the “Ordinary Shares”). The
ADSs to be purchased as described above are referred to herein as the “Warrant Shares.”
All terms not otherwise defined herein shall have the meaning ascribed to them in the
Subscription Agreement.

     Section 1. Period for Exercise and Exercise Price; Redemption.

     1.1 Period for Exercise. The right to purchase shares of Warrant Shares represented
by this Warrant shall be immediately exercisable, and shall expire at 5:00 p.m., Chicago
local time, February 28, 2010 (the “Expiration Date”). From and after the Expiration Date
this Warrant shall be null and void and of no further force or effect whatsoever.

     1.2 Warrant Exercise Price. The Warrant Exercise Price per share of Warrant Shares
shall be 2,000,000
at the greater of the US Dollar equivalent of 20.5 UK pence or US$0.60 (subject to
adjustment as hereinafter provided), calculated by reference to the average currency
conversion rate quoted by the Bank of America in London as the price for Pounds Sterling
purchased with U.S. Dollars prevailing at the date the Warrant is exercised.
Notwithstanding any provision hereof to the contrary (and in particular any provision
relating to adjustment to the Warrant Exercise Price), the Company shall not be required or
permitted to issue any Ordinary Shares under this

 

 

Warrant (or have its transfer agent or
Depositary issue any ADSs), if such issuance would breach the Company’s obligations under
the United Kingdom Companies Act 1985.

     Section 2. Exercise of Warrant.

     2.1 Manner of Exercise. The Holder may exercise this Warrant, in whole or in part,
immediately, but not after the Expiration Date, during normal business hours on any Trading
Day by surrendering this Warrant to the Company at the principal office of the Company,
accompanied by a Warrant Exercise Form in substantially the form annexed hereto duly
executed by the Buyer and by payment of the Warrant Exercise Price for the number of
Warrant Shares for which this Warrant is then exercisable, either (i) in immediately
available funds, (ii) by delivery of an instrument evidencing indebtedness owing by the
Company to the Holder in the appropriate amount, (iii) by authorizing the Company to retain
ADSs which would otherwise be issuable upon exercise of this Warrant (subject to and in
accordance with Section 2.4 hereof) or (iv) in a combination of (i), (ii) or (iii) above,
provided, however, that in no event shall the Holder be entitled to exercise this Warrant
for a number of Warrant Shares in excess of that number of Warrant Shares which, upon
giving effect to such exercise, would cause the aggregate number of ADSs or Ordinary Shares
beneficially owned by the Holder to exceed 9.9% of the outstanding ADSs or Ordinary Shares
following such exercise. For purposes of the foregoing proviso, the aggregate number of
ADSs or Ordinary Shares beneficially owned by the Holder shall include the number of ADSs
or Ordinary Shares issuable upon exercise of this Warrant with respect to which
determination of such proviso is being made, but shall exclude ADSs or Ordinary Shares
which would be issuable upon (i) exercise of the remaining, unexercised Warrants
beneficially owned by the Holder and (ii) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Company beneficially owned by the Holder
subject to a limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this paragraph,
beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. The Holder may waive the foregoing limitation by written
notice to the Company upon not less than 61 days prior written notice (with such waiver
taking effect only upon the expiration of such 61 day notice period).

     2.2 When Exercise Effective. Each exercise of this Warrant shall be deemed to have
been effected on the day on which all requirements of Section 2.1 shall have been met with
respect to such exercise. At such time the person in whose name any certificate for shares
of Warrant Shares shall be issuable upon such exercise shall be deemed for all corporate
purposes to have become the Holder of record of such shares, regardless of the actual
delivery of certificates evidencing such shares.

     2.3 Delivery of Certificates. As soon as practicable after each exercise of this
Warrant, and in any event no later than 3 Trading Days after such exercise, the Company
will issue Warrant Shares for the number of Warrant Shares to which the Holder is entitled
upon such Holder’s submission of the applicable Warrant Exercise Form.

2

 

     2.4 Cashless Exercise. The Holder may, by providing notice thereof to the Company
along with the Warrant Exercise Form, elect to exercise the Warrant for a number of
Warrant Shares determined in accordance with the following formula:

          X = Y(A-B)

                     A

	 	 	 	 	 	 	 
	 	 	Where:
	 
	 	 	 	 	 	 
	

	 	X
	 	=
	 	The number of Warrant Shares to be issued to the
Holder.
	 
	 	 	 	 	 	 
	

	 	Y
	 	=
	 	The number of Warrant Shares
purchasable under this Warrant (at the date of such
exercise).
	 
	 	 	 	 	 	 
	

	 	A
	 	=
	 	The fair market value of one ADS (or
other security for which the Warrant is then exercisable
at the date of such exercise).
	 
	 	 	 	 	 	 
	

	 	B
	 	=
	 	Exercise Price (as adjusted to the date of such
exercise).

For purposes of this Section 2.4, the “fair market value” per share shall be the Closing
Sale Price of the ADSs for the Trading Day immediately prior to the notice of exercise of
the Warrant. Notwithstanding any provisions herein to the contrary, the “cashless
exercise” of the Warrants contemplated hereunder shall not be permitted to the extent that
the Company is prohibited under the corporate laws and regulations of England and Wales
from effectuating such “cashless exercise” of the Warrants.

     Section 3. Adjustment of Purchase Price and Number of Shares. The Warrant Exercise
Price and the kind of securities issuable upon exercise of the Warrant shall be adjusted
from time to time as follows (subject to Section 1.2):

     3.1 Subdivision or Consolidation of Shares (Share Splits). If the Company at any time
effects a subdivision or consolidation of the outstanding ADSs or Ordinary Shares (through
a split or otherwise), the number of Warrant Shares shall be increased, in the case of a
subdivision, or the number of shares of Warrant Shares shall be decreased, in the case of a
consolidation, in the same proportions as the ADSs or Ordinary Shares are subdivided or
consolidated, in each case effective automatically upon, and simultaneously with, the
effectiveness of the subdivision or consolidation which gives rise to the adjustment.

     3.2 Dividends. If the Company at any time pays a dividend, or makes any other
distribution, to holders of ADSs or Ordinary Shares payable in ADSs or Ordinary Shares, or
fixes a record date for the determination of holders of ADSs or Ordinary Shares entitled to
receive a dividend or other distribution payable in Ordinary Shares or ADSs, then the
number of shares of Warrant Shares in effect immediately prior to such action shall be
proportionately increased so that the Holder hereof may receive upon exercise of the
Warrant the aggregate number of ADSs which he or it would have owned immediately following
such action if the Warrant had been exercised immediately prior to such action. The
adjustment shall become effective immediately as of the date the Company shall take a
record of the holders of ADSs or Ordinary Shares for the purpose of receiving such dividend
or distribution (or if no such record is taken, as of the effectiveness of such dividend or
distribution).

3

 

     3.3 Reclassification, Consolidation or Merger. If at any time, as a result of:

     (a) a capital reorganization or reclassification (other than a subdivision,
consolidation or dividend provided for elsewhere in this Section 3), or

     (b) a merger or consolidation of the Company with another corporation (whether or not
the Company is the surviving corporation),

the ADSs issuable upon exercise of the Warrants shall be changed into or exchanged for the
same or a different number of shares of any class or classes of shares of the Company or
any other corporation, or other securities convertible into such shares, then, as a part of
such reorganization, reclassification, merger or consolidation, appropriate adjustments
shall be made in the terms of the Warrants (or of any securities into which the Warrants
are exercised or for which the Warrants are exchanged), so that:

     (y) the Holders of Warrants or of such substitute securities shall thereafter be
entitled to receive, upon exercise of the Warrants or of such substitute securities, the
kind and amount of shares, other securities, money and property which such Holders would
have received at the time of such capital reorganization, reclassification, merger, or
consolidation, if such Holders had exercised their Warrants immediately prior to such
capital reorganization, reclassification, merger, or consolidation, and

     (z) the Warrants or such substitute securities shall thereafter be adjusted on terms
as nearly equivalent as may be practicable to the adjustments theretofore provided in this
Section 3.3.

No consolidation or merger in which the Company is not the surviving corporation shall be
consummated unless the surviving corporation shall agree, in writing, to the provisions of
this Section 3.3. The provisions of this Section 3.3 shall similarly apply to successive
capital reorganizations, reclassifications, mergers and consolidations.

     3.4 Other Action Affecting ADSs or Ordinary Shares. If at any time the Company takes
any action affecting ADSs or Ordinary Shares, other than an action described in any of
Sections 3.1 — 3.3 which could reasonably be expected to have an adverse effect upon the
exercise rights of the Warrants, the Warrant Exercise Price or the kind of securities
issuable upon exercise of the Warrants, or both, shall be adjusted in such manner to be
equitable in the circumstances.

     3.5 Notice of Adjustment Events. Whenever the Company contemplates the occurrence of
an event which would give rise to adjustments under this Section 3, the Company shall mail
to each Warrant Holder, at least 5 days prior to the record date with respect to such event
or, if no record date shall be established, at least 5 days prior to such event, a notice
specifying (i) the nature of the contemplated event, and (ii) the date on which any such
record is to be taken for the purpose of such event, and (iii) the date on which such event
is expected to become effective, and (iv) the time, if any is to be fixed, when the holders
of record shall be entitled to exchange their ADSs or Ordinary Shares (or other securities)
for securities or other property deliverable in connection with such event.

     3.6 Notice of Adjustments. Whenever the kind or number of securities issuable upon
exercise of the Warrants, or both, shall be adjusted pursuant to Section 3, the Company
shall deliver a certificate signed by its Chief Executive Officer and by its Chief
Financial Officer,

4

 

setting forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated (including a description
of the basis of any determination hereunder), and the Warrant Exercise Price and the kind
of securities issuable upon exercise of the Warrants after giving effect to such
adjustment, and shall cause copies of such certificate to be mailed (by first class mail
postage prepaid) to each Warrant Holder promptly after each adjustment.

     Section 4. Reservation. The Company covenants and agrees that it will at all times
have authorized, reserve and keep available, solely for issuance and delivery upon the
exercise of this Warrant, the number of Ordinary Shares represented by ADSs from time to
time issuable upon the exercise of this Warrant. The Company further covenants and agrees
that this Warrant is, and any Warrants issued in substitution for or replacement of this
Warrant and all Warrant Shares, will upon issuance be duly authorized and validly issued
and, in the case of Ordinary Shares represented by ADSs issuable hereunder, upon issuance
will be fully paid and non-assessable and free from all preemptive rights of any
shareholder, and from all taxes, liens and charges with respect to the issue thereof.

     Section 5. Ownership, Transfer and Substitution of Warrants.

     5.1 Ownership of Warrants. The Company may treat the person in whose name
any Warrant is registered on the register kept at the principal office of the Company as
the owner and Holder thereof for all purposes, notwithstanding any notice to the contrary,
but in all events recognizing any transfers made in accordance with the terms of this
Warrant.

     5.2 Transfer and Exchange of Warrants. Upon the surrender of any Warrant, properly
endorsed, for registration of transfer or for exchange at the principal office of the
Company, the Company at its expense will execute and deliver to the Holder thereof, upon
the order of such Holder, a new Warrant or Warrants of like tenor, in the name of such
Holder or as such Holder may direct, for such number of ADSs with respect to each such
Warrant, the aggregate number of ADSs in any event not to exceed the number of ADSs for
which the Warrant so surrendered had not been exercised.

     5.3 REGISTRATION RIGHTS. THE HOLDER OF THIS WARRANT IS ENTITLED TO CERTAIN
REGISTRATION RIGHTS WITH RESPECT TO THE WARRANT SHARES ISSUABLE UPON EXERCISE THEREOF. SAID
REGISTRATION RIGHTS ARE SET FORTH IN A REGISTRATION RIGHTS AGREEMENT BY AND BETWEEN THE
BUYER AND THE COMPANY.

     5.4 Exemption from Registration. If an opinion of counsel provides that registration
is not required for the proposed exercise or transfer of this Warrant or the proposed
transfer of the Warrant Shares and that the proposed exercise or transfer in the absence of
registration would require the Company to take any action including executing and filing
forms or other documents with the Securities and Exchange Commission (the “SEC”) or any
state securities agency, or delivering to the Holder any form or document in order to
establish the right of the Holder to effectuate the proposed exercise or transfer, the
Company agrees promptly, at its expense, to take any such action. At any time
after the registration statement contemplated in Section 4(a) of the Subscription
Agreement is declared effective by the SEC, any Warrant Shares issued to the Holder in
connection with any exercise of this Warrant shall be issued in certificated form and shall
bear no restrictive legend. At any time before the registration statement
contemplated in Section 4(a) of the Subscription Agreement is declared effective by the
SEC, any

5

 

Warrant Shares issued to the Holder in connection with any exercise of this Warrant
shall be issued in certificated form and shall bear the following restrictive legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES
LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

On the Commencement Date (as defined in the Subscription Agreement), the Company shall
cause any restrictive legend on any outstanding Warrant Shares to be removed.

     Section 6. No Rights or Liabilities as Shareholder. Nothing contained in this Warrant
shall be construed as conferring upon the Holder hereof any rights as a shareholder of the
Company or as imposing any liabilities on such holder to purchase any securities or as a
shareholder of the Company, whether such liabilities are asserted by the Company or by
creditors of the Company.

     Section 7. Rule 144 Sales. At the request of any Holder who proposes to sell
securities in compliance with Rule 144 of the SEC, the Company will (i) forthwith furnish
to such Holder a written statement of compliance with the filing requirements of the SEC as
set forth in Rule 144, as such rules may be amended from time to time and (ii) make
available to the public and such Holder such information as will enable the Holder to make
sales pursuant to Rule 144.

     Section 8.
Miscellaneous.

     8.1 Amendment and Waiver. This Warrant may be amended with, and only
with, the written consent of the Company and the Holder. Any waiver of any term, covenant,
agreement or condition contained in this Warrant shall not be deemed a waiver of any other
term, covenant, agreement or condition, and any waiver of any default in any such term,
covenant, agreement or condition shall not be deemed a waiver of any later default thereof
or of any default of any other term, covenant, agreement or condition.

     8.2 Representations and Warranties to Survive Closing. All representations,
warranties and covenants contained herein shall survive the execution and delivery of this
Warrant and the issuance of any Warrant Shares upon the exercise hereof.

     8.3 Severability. In the event that any court or any governmental authority or agency
declares all or any part of any Section of this Warrant to be unlawful or invalid, such
unlawfulness or invalidity shall not serve to invalidate any other Section of this Warrant,
and in

6

 

the event that only a portion of any Section is so declared to be unlawful or invalid,
such unlawfulness or invalidity shall not serve to invalidate the balance of such Section.

     8.4 Binding Effect; No Third Party Beneficiaries. All provisions of this Warrant
shall be binding upon and inure to the benefit of the parties and their respective heirs,
legatees, executors, administrators, legal representatives, successors, and permitted
transferees and assigns. No person other than the holder of this Warrant and the Company
shall have any legal or equitable right, remedy or claim under or in respect of, this
Warrant.

     8.5 Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Warrant must be in writing and will be
deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (iii) one Trading Day
after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

If to the Company:

Insignia Solutions plc

41300 Christy Street

Fremont, CA 94538

Telephone: 510-360-3700

Facsimile: 510-360-3701

Attention: Chief Executive Officer

With a copy to:

Venture Law Group

2800 Sand Hill Road

Menlo Park, CA 94025

Telephone: 650-854-4488

Facsimile: 650-233-8386

Attention: Mark A. Medearis

If to the Holder:

Fusion Capital Fund II, LLC

222 Merchandise Mart Plaza, Suite 9-112

Chicago, IL 60654

Telephone: 312-644-6644

Facsimile: 312-644-6244

Attention: Steven G. Martin

If to the Transfer Agent:

Bank of New York

ADR Department

620 Avenue of the Americas, 6th Floor

New York, NY 10011

Telephone: 212-815-4305

Facsimile: 212-571-3050

Attention: Tom Abbott

7

 

or at such other address and/or facsimile number and/or to the attention of such other
person as the recipient party has specified by written notice given to each other party
three (3) Trading Days prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine containing
the time, date, and recipient facsimile number or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

     8.6 Taxes, Costs and Expenses. The Company covenants and agrees that it will pay when
due and payable any and all United Kingdom, English, Welsh, federal, state and local taxes
(other than income taxes) and any other costs and expenses (including any and all
transfer, stamp or similar taxes) which may be payable in respect of the preparation,
issuance, delivery, exercise, or surrender of this Warrant pursuant to the terms of this
Warrant or the issuance of any shares of Warrant Shares as a result thereof. If any suit
or action is instituted or attorneys employed to enforce this Warrant or any part thereof,
the Company promises and agrees to pay all costs and expenses associated therewith,
including reasonable attorneys’ fees and court costs. 

     8.7 Governing Law; Jurisdiction; Jury Trial. The corporate laws of England and Wales
shall govern all issues concerning the relative rights of the Company and its shareholders
and the powers and capacity of the Company. All other questions concerning the
construction, validity, enforcement and interpretation of this Warrant shall be governed by
the internal laws of the State of Illinois, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Illinois or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of Chicago, for the adjudication of any
dispute hereunder or under the other Transaction Documents or in connection herewith or
therewith, or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

     8.8 Loss of Warrant. Upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) of indemnification from the Holder, and upon surrender and
cancellation of this Warrant, if mutilated, the Company shall execute and deliver a new
Warrant of like tenor and date.

     8.9 Entire Agreement. This Warrant, the Subscription Agreement and the Registration
Rights Agreement of even date herewith represent the entire agreement and

8

 

understanding between the parties concerning the subject matter hereof and supercede
all prior and contemporaneous agreements, understandings, representations and warranties
with respect thereto.

     8.10 Headings. The headings used herein are used for convenience only and are not to
be considered in construing or interpreting this Warrant.

	 	 	 	 	 
	 	 	INSIGNIA SOLUTIONS PLC
	 
	 	 	 	 
	

	 	By:	 	/s/ Mark McMillan
	

	 	 	 	

	

	 	Name:	 	Mark McMillan
	

	 	 	 	

	

	 	Title:	 	CEO
	

	 	 	 	

9

 

WARRANT EXERCISE FORM

Date:                                        

INSIGNIA SOLUTIONS PLC

                                        

                                        

Attention:                                        

Ladies
and Gentlemen:

 The undersigned, being the registered holder of your Warrant for the
purchase of ___Warrant Shares issued ___accompanying this letter, hereby
irrevocably exercises such Warrant for ___Warrant Shares (as defined in said
Warrant), and herewith makes payment therefor [via “cash-less exercise”] in accordance with
the Warrant, and requests that such Warrant Shares be issued in the name of, and delivered
to FUSION CAPITAL FUND II, LLC, at the address shown below the signature line
hereof.

If said number of Warrant Shares shall not be all the Warrant Shares issuable upon exercise
of the attached Warrant, a new Warrant is to be issued in the name of the undersigned for
the balance remaining of such Warrant Shares.

FUSION CAPITAL FUND II, LLC

BY: FUSION CAPITAL PARTNERS, LLC

By:

Name:

Title:
 

Fusion Capital Fund II, LLC

222 Merchandise Mart Plaza, Suite 9-112

Chicago, IL 60654

10exv10w95

 

Exhibit 10.95

MUTUAL TERMINATION AGREEMENT

     MUTUAL
TERMINATION AGREEMENT (the “Agreement”), dated as of
February 10, 2005, by and between
INSIGNIA SOLUTIONS PLC, a public limited company incorporated under the laws of England and Wales
(registered number: 1961960) (the “Company”), and FUSION CAPITAL FUND II, LLC, an Illinois limited
liability company (the “Buyer”).

     WHEREAS, the Buyer and the Company mutually desire to terminate the Securities Subscription
Agreement dated as of October 17, 2002, by and between the Company and the Buyer (the “Purchase
Agreement”). All capitalized terms used in this Agreement that are not defined in this Agreement
shall have the meanings set forth in the Purchase Agreement;

     NOW THEREFORE, the Company and the Buyer hereby agree as follows:

     1. TERMINATION OF THE PURCHASE AGREEMENT.

     The Purchase Agreement, and the other Transaction Documents between the Buyer and the Company
related to the Purchase Agreement (other than this Agreement, that certain Registration Rights
Agreement between the Company and Buyer dated October 17, 2002, the “Registration Rights
Agreement”) are hereby terminated effective as of the date hereof and any and all rights, duties
and obligations arising thereunder or in connection with the Purchase Agreement, and the
Transaction Documents (other then the Registration Rights Agreement and this Agreement) are now and
hereafter fully and finally terminated, provided, however, that (i) the representations and
warranties of the Buyer and Company contained in Sections 2 and 3 of the Purchase Agreement, (ii)
the indemnification provisions set forth in Section 8 of the Purchase Agreement, (iii) the
agreements and covenants set forth in Section 11 of the Purchase Agreement, including, but not
limited to, the Company’s and the Buyer’s obligations with respect to any pending purchases of
Common Stock under the Purchase Agreement, and (iv) the Registration Rights Agreement, shall
survive such termination and shall continue in full force and effect (the “Surviving Obligations”).

2. MUTUAL GENERAL RELEASE.

     Except as may arise under or in connection with this Agreement and the Surviving Obligations,
the Company and the Buyer hereby release and forever discharge each party hereto and its
predecessors, successors and assigns, employees, shareholders, partners, managing members,
officers, directors, agents, subsidiaries, divisions and affiliates from any and all claims, causes
of actions, suits, demands, debts, dues, accounts, bonds, covenants, contracts, agreements,
judgments whatsoever in law or in equity, whether known or unknown, including, but not limited to,
any claim arising out of or relating to the transactions described in the Purchase Agreement and
Transaction Documents (other than the Registration Rights Agreement or the Surviving Obligations)
which any party hereto had, now has or which its heirs, executors, administrators, successors or
assigns, or any of them, hereafter can, shall or may have, against any party hereto

 

 

or such parties predecessors, successors and assigns, employees, shareholders, partners, managing
members, officers, directors, agents, subsidiaries, divisions and affiliates, for or by reason of
any cause, matter or thing whatsoever, whether arising prior to, on or after the date hereof,
provided, however, that (i) this Agreement, (ii) the Surviving Obligations including, but not
limited to, the Registration Rights Agreement, shall continue in full force and effect as the
legal, valid and binding obligation of each party thereto enforceable against each such party in
accordance with its terms.

     3. MISCELLANEOUS.

     (a) Governing Law; Jurisdiction; Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of Illinois, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Illinois or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of Illinois. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of Chicago, for the adjudication of any dispute hereunder or under the other
Transaction Documents or in connection herewith or therewith, or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

     (b) Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an original, not a
facsimile signature.

     (c) Headings. The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement.

     (d) Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the
validity or

2

 

enforceability of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.

     (e) Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Trading Day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

If to the Company:

          Insignia Solutions plc

          41300 Christy Street

          Fremont, CA 94538

          Telephone: 510-360-3700

          Facsimile: 510-360-3701

          Attention: Chief Executive Officer

If to the Buyer:

          Fusion Capital Fund II, LLC

          222 Merchandise Mart Plaza, Suite 9-112

          Chicago, IL 60654

          Telephone: 312-644-6644

          Facsimile: 312-644-6244

          Attention: Steven G. Martin

or at such other address and/or facsimile number and/or to the attention of such other person as
the recipient party has specified by written notice given to each other party three (3) Trading
Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, and recipient
facsimile number or (C) provided by a nationally recognized overnight delivery service, shall be
rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

     (f) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns. The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of the
Buyer, including by merger or consolidation. The Buyer may not assign its rights or obligations
under this Agreement.

3

 

     (g) No Third Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

     (h) Further Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement.

     (i) No Strict Construction. The language used in this Agreement is the language
chosen by the parties to express their mutual intent, and no rules of strict construction will be
applied against any party.

     (j) Changes to the Terms of this Agreement. This Agreement and any provision hereof
may only be amended by an instrument in writing signed by the Company and the Buyer. The term
“Agreement” and all reference thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as so amended or
supplemented.

     (k) Failure or Indulgence Not Waiver. No failure or delay in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privilege.

     (l) Entire Agreement. This Agreement supersedes all other prior oral or written
agreements between the Buyer, the Company, their affiliates and persons acting on their behalf with
respect to the matters discussed herein, and this Agreement, the other Transaction Documents and
the instruments referenced herein contain the entire understanding of the parties with respect to
the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with
respect to such matters. The Company acknowledges and agrees that is has not relied on, in any
manner whatsoever, any representations or statements, written or oral, other than as expressly set
forth in this Agreement.

* *   *   *

4

 

     IN WITNESS WHEREOF, the Buyer and the Company have caused this Mutual Termination Agreement to
be duly executed as of the date first written above.

	 	 	 	 	 
	 	 	THE COMPANY:
	 
	 	 	 	 
	 	 	INSIGNIA SOLUTIONS plc
	 
	 	 	 	 
	

	 	By:	 	/s/ Mark McMillan
	

	 	 	 	

	

	 	Name:	 	Mark McMillan
	

	 	Title:	 	CEO
	 
	 	 	 	 
	 	 	BUYER:
	 
	 	 	 	 
	 	 	FUSION CAPITAL FUND II, LLC
	 	 	BY: FUSION CAPITAL PARTNERS, LLC
	

	 	BY:	 	SGM Holdings Corp.
	

	 	 	 	

	 
	 	 	 	 
	

	 	By:	 	/s/ Steven G. Martin
	

	 	 	 	

	

	 	Name:	 	Steven G. Martin
	

	 	Title:	 	President

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]