Document:

<Page>

                                                                   EXHIBIT 10.48

                          UNITED INDUSTRIES CORPORATION
                           DEFERRED COMPENSATION PLAN
                            FOR MANAGEMENT EMPLOYEES

                             (Effective May 1, 2002)

<Page>

                          UNITED INDUSTRIES CORPORATION
                           DEFERRED COMPENSATION PLAN
                            FOR MANAGEMENT EMPLOYEES

                                    ARTICLE I
                                  INTRODUCTION

     1.1  NAME. The name of this plan shall be the "United Industries
Corporation Deferred Compensation Plan for Management Employees." Unless
otherwise expressly provided herein, the capitalized terms used in this Plan
shall have the meanings set forth in ARTICLE II.
     1.2  PURPOSE. The Company established the United Industries Corporation
Deferred Compensation Plan effective January 20, 1999 (the "1999 Deferred
Compensation Plan") in connection with the recapitalization of the Company at
that time. The Company now wishes to adopt this Plan to provide a method of
providing additional equity incentive-based deferred compensation to select
management executives.
     This Plan shall constitute an unfunded nonqualified deferred compensation
arrangement established for the purpose of providing equity incentive based
deferred compensation to a select group of management and highly compensated
employees. The Plan is intended to be exempt from Parts 2 and 3 of Title I of
ERISA.
     1.3  ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Committee. The duties and authority of the Committee under the Plan shall
include (i) the interpretation of the provisions of the Plan, (ii) the adoption
of any rules and regulations which may become necessary or advisable in the
operation of the Plan, (iii) the making of such determinations as may be
permitted or required pursuant to the Plan, and (iv) the taking of such other
actions as may be required for the proper administration of the Plan in
accordance with its terns. Any decision of the Committee with respect to any
matter within the authority of the Committee shall be final, binding and
conclusive upon the Company and each Participant, former Participant, designated
beneficiary, and each person claiming under or through any Participant or
designated beneficiary; and no additional authorization or ratification by the
Board of Directors or stockholders of the Company shall be required, Any action
taken by the Committee with respect to any one or more Participants shall not be
binding on the Committee as to any action to be taken with respect to any other
Participant. A member of the Committee may be a Participant, but no member of
the Committee may participate in any decision directly affecting his rights or
the computation of his benefits under the Plan. Each determination required or
permitted under the Plan shall be made by the Committee in the sole and absolute
discretion of the Committee.

                                   ARTICLE II
                                   DEFINITIONS

     2.1  "ACCOUNT" means a bookkeeping account maintained by the Company for a
Participant under the Plan.
     2.2  "ACCOUNT BALANCE" means the value, as of a specified date, of any of
the Accounts of a Participant.
     2.3  "AFFILIATE" of any Person means any other Person, directly or
indirectly controlling, controlled by or under common control with such Person.
     2.4  "CAUSE" for termination by the Company of a Participant's employment
shall have the meaning set forth in the Management Agreement between such
Participant and the Company, if any, and if there is no such Management
Agreement in effect at the relevant time, Cause mean shall have the meaning set
forth in the Employment Letter Agreement between such Participant and the
Company, if any, and if there is no such Management Agreement and no such
Employment Letter Agreement in effect at the relevant time, Cause shall mean (a)
a conviction of or a plea of guilty or NOLO CONTENDERE by the Participant to (i)
any felony or misdemeanor related to the performance of his duties under this
Agreement, or (ii) any felony unrelated to the Employee's duties under this
Agreement, or (b) the commission by the Participant of any act of fraud,
misappropriation, embezzlement, theft, dishonesty, breach of fiduciary duty
involving personal profit, or the

<Page>

knowing violation of any governmental law, rule or regulation (other than
traffic violations or similar minor offenses), when such act or violation occurs
in connection with the business or operation of the Company.
     2.5  "CODE" means the Internal Revenue Code of 1986, as amended.
     2.6  "COMMITTEE" means either the persons who have been designated by the
Board of Directors of the Company to administer the United Industries
Corporation Deferred Compensation Plan effective January 20, 1999, or the
Compensation Committee of the Board of Directors of the Company, or both.
     2.7  "COMPANY" means United industries Corporation, a Delaware corporation,
or its successors or assigns under the Plan.
     2.8  "DEFERRAL CONTRIBUTIONS" means the contributions made on behalf of a
Participant pursuant to SECTION 4.1 of this Plan.
     2.9  "DEFERRAL CONTRIBUTION ACCOUNT" has the meaning set forth in
SECTION 4.2 of the Plan.
     2.10 "FAIR MARKET VALUE" of each share of any class or type of common stock
of the Company means the fair value of such shares or such class or type of
stock determined in good faith by the Board of Directors of the Company, based
on the assumption of an arm's-length transaction between a willing buyer and a
willing seller, taking into account all reasonable and customary factors
relevant to value including, without limitation, the fact that there may be no
public market for the Company's securities, but not including any minority
discount; provided that, until the first anniversary hereof, the Fair Market
Value of each share of common stock of the Company shall not be less than the
original amount used for purposes of determining the number of units of
Permitted Investments credited to the Deferral Account of a Participant in
accordance with Section 4.2.
     2.11 "MARKETABLE SECURITIES" means any securities which are, or will be
immediately after distribution hereunder, (i) covered by an effective
registration statement filed pursuant to the Securities Act of 1933, as amended
from time to time, (ii) listed for trading on a national securities exchange and
(iii) otherwise freely tradable.
     2.12 "PARTICIPANT" means any eligible employee of the Company who is
participating under the Plan pursuant to ARTICLE III.
     2.13 "PARTICIPANT SECURITIES" means, with respect to each Participant, the
Permitted Investments in which a Participant's Account is deemed to be invested.
     2.14 "PERMITTED INVESTMENT" means an investment of 50% in Class A voting
common stock of the Company ("CLASS A") or 50% in Class B nonvoting common stock
of the Company ("CLASS B"), or both, including any cash or property received in
exchange for, or with respect to the Class A or Class B, in connection with a
merger of the Company, a sale of substantially all of the stock of the Company,
or any similar transaction.
     2.15 "PERSON" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.
     2.16 "PLAN" means this "United Industries Corporation Deferred Compensation
Plan effective May 1, 2002," as amended from time to time.
     2.17 "PUBLIC OFFERING" means the sale in an underwritten public offering
registered under the Securities Act of shares of any class of the Company's
Common Stock.
     2.18 "PUBLIC SALE" means any sale pursuant to a Public Offering or any sale
to the public pursuant to Rule 144 promulgated under the Securities Act effected
through a broker, dealer or marker maker.
     2.18 "SALE OF THE COMPANY" means (a) the acquisition by an independent
third party of voting securities of (x) the Company or (y) the surviving entity
in any reorganization, merger or consolidation (each an "ACQUISITION") involving
the Company (any such entity referred to herein as the "CORPORATION") where such
Acquisition causes such independent third party to own more than fifty percent
(50%) of the combined voting power of the then outstanding voting securities of
the Corporation entitled to vote generally in the election of directors, other
than acquisitions by the Thomas H. Lee Company or its affiliates, (b) the
approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company, (c) the acquisition by an independent third party of
more than 50% of the Company's assets determined on a consolidated basis or (d)
if individuals who constitute the Board of Directors of the Company on the date
of the Company's initial Public

<Page>

Offering of equity securities (the "INCUMBENT BOARD") cease for any reason to
constitute at least a majority of the Board thereafter, it being understood that
any individual becoming a director subsequent to such date whose election, or
nomination for election, is, at any time, approved by a vote of at least a
majority of the directors comprising the Incumbent Board shall be considered a
member of the Incumbent Board. For purposes of this paragraph, "independent
third party" means any Person who, immediately prior to the contemplated
transaction, does not own in excess of 50% of the Company's voting common stock
on a fully-diluted basis (a "50% OWNER"), who is not an affiliate of any such
50% Owner, who is not the spouse or descendant (by birth or adoption) of any
such 50% Owner or a trust for the benefit of any such 50% Owner and/or such
other Persons, and who his not Person who through contract or other arrangements
(other than arrangements entered into in connection with the contemplated
transactions) would be an affiliate immediately after the contemplated
transaction.
     2.19 "STOCKHOLDERS" means the Persons holding the outstanding Common Stock
or other equity interests of the Company at the time in question.
     2.20 "SUBSIDIARY" means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of
which (i) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity, a majority
of the limited liability company, partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by
any Person or one or more Subsidiaries of that Person or a combination thereof.
For purposes hereof, a Person or Persons shall be deemed to have a majority
ownership interest in a limited liability company, partnership, association or
other business entity if such Person or Persons shall be allocated a majority of
limited liability company, partnership, association or other business entity
gains or losses or shall be or control the managing director or general partner
of such limited liability company, partnership, association or other business
entity.

<Page>

                                   ARTICLE III
                               PLAN PARTICIPATION

     3.1  ELIGIBILITY. Each management employee of the Company who entered into
a Participation Agreement dated May 1, 2002 to defer a portion of his bonus, and
any other management or highly compensated employee designated by the Board of
Directors of the Company, or by the Committee, from time to time as eligible to
participate, are eligible to participate in this Plan.
     3.2  PARTICIPATION. Each person eligible to participate in this Plan shall
become a Participant hereunder by timely executing a deferral election form with
the Committee in accordance with the requirements of ARTICLE IV.

                                   ARTICLE IV
                             DEFERRAL CONTRIBUTIONS

     4.1  DEFERRAL CONTRIBUTIONS. For each person who entered into a
Participation Agreement as of May 1, 2002, the amount of the bonus for 2002
deferred pursuant to that Agreement shall be deferred pursuant to this Plan.
     Each other person who is eligible to participate in this Plan for 2002, and
each person who is eligible to participate in this Plan for years after 2002,
may elect to reduce the amount that such person would otherwise be entitled to
be paid to the extent permitted by the Board of Directors of the Company, or by
the Committee, from time to time, and to defer the receipt of such compensation
to the time or times, and in the manner, provided by this Plan. Each Participant
desiring to defer compensation hereunder shall file an election with the
Committee in such form and at such time as the Committee may determine (a
"Participation Agreement"). The completion of such a Participation Agreement
shall evidence the Participant's authorization of the Company to reduce the
amount payable to such Participant and shall thereafter be irrevocable.
     4.2  DEFERRAL CONTRIBUTION ACCOUNT. The Committee shall establish and
maintain an account (the "DEFERRAL CONTRIBUTION ACCOUNT") with respect to each
Participant who has elected to make a Deferral Contribution under this ARTICLE
IV. The Participant's Deferral Contribution Account shall be a bookkeeping
account maintained by the Company and shall reflect the amount the Participant
has elected to defer under the Plan. The Participant's Deferral Account shall
also reflect the number of units or shares of Permitted Investments to which the
Participant is entitled under this Plan with respect to such deferred amount.
The amount of any deemed investment earnings and losses on the amounts reflected
in a Participant's Deferral Contribution Account shall be credited or charged to
his Deferral Contribution Account in accordance with ARTICLE V.
     For the year 2002, the Committee shall credit to the Deferral Contribution
Account of each person who entered into a Participation Agreement as of May 1,
2002, the amount of the bonus deferred pursuant to that Agreement. The number of
units or shares of Permitted Investments to which the Participant is entitled
under this Plan with respect to such deferred amount, shall be determined and
reflected in terms of common shares of United Industries Corporation (in an
equal number of Common A shares and Common B shares) at a value of $5.00 per
share.

                                    ARTICLE V
                          EARNINGS ON ACCOUNT BALANCES

     5.1  INVESTMENTS.
          (a)  PERMITTED INVESTMENTS. Except as provided in SECTION 5.1(b), all
of a Participant's Deferral Contribution Account shall be deemed to be invested
in the Permitted Investments. Such amounts shall be deemed to be invested as of
the time the Participant enters into a Participation Agreement pursuant to
SECTION 4.1. The Committee shall notify each Participant in writing of the
number of units or shares of

<Page>

Permitted Investments to which the Participant is entitled under this Plan with
respect to each amount deferred under this Plan (which notice may be
incorporated in the Participation Agreement).
          (b)  RECEIPTS. Each Account shall be deemed to receive all interest,
dividends, earnings and other payments of cash or property which would have been
received with respect to or in exchange for a Permitted Investment deemed to be
held in such Account if such Account was actually invested in such Permitted
Investment (including with respect to a Sale of the Company) to the extent that
such amounts are not previously included in the definition of Permitted
Investment. Any such payments of cash or of property consisting of Marketable
Securities shall be paid (in the case of property consisting of Marketable
Securities, at the option of the Company, in kind or in cash in an amount equal
to the Fair Market Value of such Marketable Securities) to the Participant to
whose Account it is attributable not more than ten days after the date it would
have been received with respect to the Permitted Investment.
          (c)  ACTUAL INVESTMENT NOT REQUIRED. The Company need not actually
make any Permitted Investment. If the Company should from time to time make any
investment similar to a Permitted Investment, such investment shall be solely
for the Company's own account and the Participant shall have no right, title or
interest therein. Accordingly, each Participant is solely an unsecured creditor
of the Company with respect to any amount distributable to him under the Plan.
     5.2  CREDITING OF DEFERRALS. The Company shall credit all Deferral
Contributions to a Participant's Deferral Contribution Account as of the date
such Deferral Contribution is made.

                                   ARTICLE VI
                             ESTABLISHMENT OF TRUST
     6.1  ESTABLISHMENT OF TRUST. The Company shall establish a grantor trust
(as described in Section 671 of the Code) for the purpose of accumulating assets
to provide for the obligations hereunder (the "TRUST"). The assets and income of
the Trust shall be subject to the claims of the general creditors of the
Company. The establishment of the Trust shall not affect the Company's liability
to pay benefits hereunder except that any such liability shall be offset by any
payments actually made to a Participant under the Trust. The Company shall cause
an amount in cash equal to each Participant's Deferral Contributions (determined
pursuant to SECTION 4.1) to be contributed to the Trust, and the Trust shall use
such cash to purchase Permitted Investments from the Company. Alternately, the
Company may contribute such Permitted Investments directly to the Trust. Any
additional amount to be contributed to the Trust shall be determined by the
Company and the investment of such assets shall be made in accordance with the
trust document.
     By adoption of this Plan, the Board of Directors authorizes and directs the
issuance to the Trust of the number of Common A shares and Common B shares of
United Industries Corporation equal to the number of such shares reflected in
the units credited to the Deferral Contribution Accounts in accordance with
Section 4.2 with respect to Participation Agreements entered into as of May 1,
2002.
     6.2  STATUS OF TRUST. Participants shall have no direct or secured claim in
any asset of the Trust or in specific assets of the Company and will have the
status of general unsecured creditors of the Company for any amounts due under
this Plan. The assets and income of the Trust will be subject to the claims of
the Company's creditors.

                                   ARTICLE VII
                        DISTRIBUTION OF ACCOUNT BALANCES
     7.1  VESTING. A Participant's benefit under his Deferral Contribution
Account shall be 100% vested and nonforfeitable and shall be distributable to
the Participant or, in the event of the Participant's death, to his beneficiary,
as provided in SECTION 7.2 below.
     7.2  TIMING OF DISTRIBUTIONS. Any Participant who is a member of the
Committee shall have no right to participate in any decision regarding the
effect of, or amend the provisions in, this SECTION 7.2. The amount and time of
a distribution shall be accelerated and changed only as described below.
          (a)  DISTRIBUTION FOLLOWING DECEMBER 31, 2009. Each Participant's
Account shall be distributed as soon as administratively practicable following
December 31, 2009. Any amount distributed to

<Page>

such Participant pursuant to this SECTION 7.2(a) shall be paid, at the option of
the Company, in the form of (i) cash in an amount equal to the Fair Market Value
of the Permitted Investments deemed to be held in the portion of such
Participant's Account being distributed, (ii) Permitted Investments deemed to be
held in the portion of such Participant's Account being distributed, or (iii) a
combination of (i) and (ii) above, PROVIDED that, if the Permitted Investments
deemed to be held in the portion of such Participant's Account being distributed
do not consist of Marketable Securities, the distribution shall be made in the
form of cash to the extent necessary, in the reasonable determination of the
Committee, to allow such Participant to pay applicable income taxes imposed on
the amount being distributed (including, without limitation, any penalties or
interest assessed against such Participant with respect to his Account). Any
capital stock of the Company will be distributed pursuant to this SECTION 7.2(a)
only if the Participant executes a Shareholders Agreement substantially in the
form of the United Industries Corporation Stockholders Agreement For Management
Employees attached hereto (the "Stockholders Agreement"), and shall be subject
to repurchase by the Company pursuant to the Stockholders Agreement.
          (b)  DISTRIBUTION IF MARKETABLE. If at any time any Permitted
Investments deemed to be held in a Participant's Account consist of cash or
Marketable Securities, such Marketable Securities or, at the option of the
Company, cash in an amount equal to the Fair Market Value of such Marketable
Securities, shall be distributed to such Participant as soon as administratively
possible.
          (c)  OPTIONAL DISTRIBUTION FOLLOWING TERMINATION. In the event any
Participant ceases to be employed by the Company or its Subsidiaries for any
reason (including, without limitation, the death of the Participant) (the
"TERMINATION"), the Company may, but shall not be required to, distribute to
such Participant all or a portion of the balance of such Participant's Account
as of the date of the applicable Company Distribution Notice, as defined in
SECTION 7.2(d) or at any time thereafter. Any amount distributed to such
Participant pursuant to this SECTION 7.2(c) shall be paid, at the option of the
Company, in the form of (i) cash in an amount equal to the Fair Market Value of
the Permitted Investments deemed to be held in the portion of such Participant's
Account being distributed, (ii) Permitted Investments deemed to be held in the
portion of such Participant's Account being distributed, or (iii) a combination
of (i) and (ii) above, PROVIDED that, if the Permitted Investments deemed to be
held in the portion of such Participant's Account being distributed do not
consist of Marketable Securities, the distribution shall be made in the form of
cash to the extent necessary, in the reasonable determination of the Committee,
to allow such Participant to pay applicable income taxes imposed on the amount
being distributed (including, without limitation, any penalties or interest
assessed against such Participant with respect to his Account). Any capital
stock of the Company distributed pursuant to this SECTION 7.2(c) shall be
subject to repurchase by the Company pursuant to the Stockholders Agreement.
          (d)  NOTICE OF DISTRIBUTION. The Company may elect to distribute all
or a portion of a Participant's Account pursuant to SECTION 7.2(c) at any time
after a Participant's Termination by delivering written notice (the "Company
Distribution Notice") to the Participant. The Company Distribution Notice shall
set forth the portion of such Participant's Account to be distributed, the
portion of such distribution to be made in the form of cash, the Fair Market
Value of the Permitted Investments deemed to be held in the portion of such
Participant's Account being distributed and the time of such distribution. The
distribution shall be made on the date designated by the Company in the Company
Distribution Notice, which date shall not be more than 60 days nor less than 10
days after the delivery of such notice. Any distribution of cash shall be made
by delivery of a check or wire transfer of funds.
     7.3  FORM OF DISTRIBUTION OF ACCOUNTS. Subject to SECTION 7.2, each
Participant's benefit under this Plan shall be distributed in a lump sum payment
in cash or in-kind, in the Committee's discretion (excluding from this decision
any Committee members who are also Participants).
     7.4  INVOLUNTARY DISTRIBUTIONS. Notwithstanding the foregoing provisions of
this ARTICLE VII, the Committee (excluding from this decision any Committee
members who are also Participants) may on its own initiative authorize and
instruct the Company to distribute to any Participant (or to a designated
beneficiary in the event of the Participant's death) all or any portion of the
Participant's Account Balances. Such payment must be specifically authorized in
the event that the Committee determines in good faith that a Participant has or
is reasonably likely to recognize income for federal income tax purposes with
respect to amounts deferred under

<Page>

this Plan prior to the time such amounts otherwise would be paid to such
Participant, or in the event the Internal Revenue Service formally notifies such
Participant in writing of its position that such Participant has recognized
income for federal income tax purposes with respect to such amounts. Any amount
distributed to such Participant pursuant to this SECTION 7.4 shall be paid, at
the option of the Company, in the form of (i) cash in an amount equal to the
Fair Market Value of the Permitted Investments deemed to be held in such
Participant's Account, (ii) Permitted Investments deemed to be held in such
Participant's Account, or (iii) a combination of (i) and (ii) above, PROVIDED
that, if the Permitted Investments deemed to be held in such Participant's
Account do not consist of Marketable Securities, the distribution shall be made
in the form of cash to the extent necessary and to the extent permissible under
the restrictive covenants in the Company's debt documents, in the reasonable
determination of the Committee, to allow such Participant to pay applicable
income taxes imposed on the amount being distributed (including, without
limitation, any penalties or interest assessed against such Participant with
respect to his Account). Any capital stock of the Company distributed pursuant
to this SECTION 7.4 shall be subject to repurchase by the Company pursuant to
the Stockholders Agreement.
     7.5  DESIGNATION OF BENEFICIARIES. Each Participant may name any person
(who may be named concurrently, contingently or successively) to whom the
Participant's Account Balance under the Plan is to be paid if the Participant
dies before such Account Balance is fully distributed. Each such beneficiary
designation will revoke all prior designations by the Participant, shall not
require the consent of any previously named beneficiary, shall be in a form
prescribed by the Committee and will be effective only when filed with the
Committee during the Participant's lifetime. If a Participant fails to designate
a beneficiary before his death, as provided above, or if the beneficiary
designated by a Participant dies before the date of the Participant's death or
before complete payment of the Participant's Account Balance, the Committee, in
its discretion, may pay the Participant's Account Balance to either (i) one or
more of the Participant's relatives by blood, adoption or marriage and in such
proportions as the Committee determines, or (ii) the legal representative or
representatives of the estate of the last to die of the Participant and his
designated beneficiary.

                                  ARTICLE VIII
                            AMENDMENT AND TERMINATION
     8.1  AMENDMENT. The Company, in its discretion, shall have the right to
amend the Plan from time to time, except that no such amendment shall, without
the consent of the Participant to whom deferred compensation has been credited
to any Account under this Plan, adversely affect the right of the Participant
(or his beneficiary) to receive payments of such deferred compensation under the
terms of this Plan, including, but not limited to, the timing and amount of such
payments.
     8.2  PLAN TERMINATION. The Company may, in its discretion, terminate the
Plan at any time, however, no termination of this Plan shall alter the right of
a Participant (or his beneficiary) to payments of deferred compensation
previously credited to such Participant's Accounts under the Plan, including,
but not limited to, the timing and amount of such payments.

                                   ARTICLE IX
                               GENERAL PROVISIONS
     9.1  NON-ALIENATION OF BENEFITS. A Participant's rights to the amounts
credited to his Accounts under the Plan shall not be grantable, transferable,
pledgeable or otherwise assignable, in whole or in part, by the voluntary or
involuntary acts of any person, or by operation of law, and shall not be liable
or taken for any obligation of such person. Any such attempted grant, transfer,
pledge or assignment shall be null and void and without any legal effect.
     9.2  WITHHOLDING FOR TAXES. Notwithstanding anything contained in this Plan
to the contrary, the Company shall withhold from any distribution made under the
Plan such amount or amounts as may be required for purposes of complying with
the tax withholding provisions of the Code or any State income tax act for
purposes of paying any estate, inheritance or other tax attributable to any
amounts distributable or creditable under the Plan.

<Page>

     9.3  IMMUNITY OF COMMITTEE MEMBERS. The members of the Committee may rely
upon any information, report or opinion supplied to them by any officer of the
Company or any legal counsel, independent public accountant or actuary, and
shall be fully protected in relying upon any such information, report or
opinion. No member of the Committee shall have any liability to the Company or
any Participant, former Participant, designated beneficiary, person claiming
under or through any Participant or designated beneficiary or other person
interested or concerned in connection with any decision made by such member of
the Committee pursuant to the Plan which was based upon any such information,
report or opinion if such member of the Committee relied thereon in good faith.
     9.4  PLAN NOT TO AFFECT EMPLOYMENT RELATIONSHIP. Neither the adoption of
the Plan nor its operation shall in any way affect the right and power of the
Company to dismiss or otherwise terminate the employment or change the terms of
the employment or amount of compensation of any Participant at any time for any
reason or without cause. By deferring compensation under this Plan, each
Participant, former Participant, designated beneficiary and each person claiming
under or through such person, shall be conclusively bound by any action or
decision taken or made under the Plan by the Committee.
     9.5  ASSUMPTION OF COMPANY LIABILITY. The obligations of the Company under
the plan may be assumed by any Affiliate of the Company, in which case such
Affiliate shall be obligated to satisfy all of the Company's obligations under
the Plan and the Company shall be released from any continuing obligation under
the Plan. At the Company's request, a Participant or designated beneficiary
shall sign such documents as the Company may require in order to effectuate the
purposes of this SECTION 9.5.
     9.6  NOTICES. Any notice required to be given by the Company or the
Committee hereunder shall be in writing and shall be delivered in person, by
reputable overnight courier with charges prepaid or by registered mail, return
receipt requested. Any notice given by courier or registered mail shall be
deemed to have been given upon the date of delivery, correctly addressed to the
last known address of the person to whom such notice is to be given.
     9.7  GENDER AND NUMBER; HEADINGS. Wherever any words are used herein in the
masculine gender they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply; and wherever any words
are used herein in the singular form they shall be construed as though they were
also used in the plural form in all cases where they would so apply. Headings of
sections and subsections of the Plan are inserted for convenience of reference
and are not part of the Plan and are not to be considered in the construction
thereof.
     9.8  CONTROLLING-LAW. The Plan shall be construed in accordance with the
laws of the State of Delaware, to the extent not preempted by any applicable
federal law.
     9.9  SUCCESSORS. The Plan is binding on all persons entitled to benefits
hereunder and their respective heirs and legal representatives, on the Committee
and its successor and on the Company and its successor, whether by way of
merger, consolidation, purchase or otherwise.
     9.10 SEVERABILITY. If any provision of the Plan shall be held illegal or
invalid for any reason, such illegality or invalidity shall not affect the
remaining provisions of the Plan, and the Plan shall be enforced as if the
invalid provisions had never been set forth therein.
     9.11 ACTION BY COMPANY. Any action required or permitted by the Company
under the Plan shall be by resolution of its Board of Directors or by a duly
authorized committee of its Board of Directors, or by a person or persons
authorized by resolution of its Board of Directors or such committee.
     9.12 REVIEW OF BENEFIT DETERMINATIONS. If a claim for benefits made by a
Participant or his or her beneficiary is denied, the Committee shall within 90
days (or 180 days if special circumstances require an extension of time) after
the claim is made furnish the person making the claim with a written notice
specifying the reasons for the denial. Such notice shall also refer to the
pertinent Plan provisions on which the denial is based, describe any additional
material or information necessary for properly completing the claim and explain
why such material or information is necessary, and explain the Plan's claim
review procedures. If requested in writing, the Committee shall afford each
claimant whose claim has been denied a full and fair review of the Committee's
decision and, within 60 days (120 days if special circumstances require
additional time) of the

<Page>

request for reconsideration of the denied claim, the Committee shall notify the
claimant in writing of the Committee's final decision.

     IN WITNESS WHEREOF, the undersigned hereby certifies that the Company duly
adopted this United Industries Corporation Deferred Compensation Plan effective
as of May 1, 2002.

                                   By:
                                        ------------------------------

                                   Title:
                                        ------------------------------

                                   Date:
                                        ------------------------------Exhibit
10.85

 

 

WARRANT AGREEMENT BETWEEN

 

INSIGNIA SOLUTIONS PLC

 

AND

 

INTERNATIONAL BUSINESS MACHINES
CORPORATION

 

 

 

Table of Contents

 

 

	
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  	 

	
  1.

  	
   

  	
  Exercise and
  Expiration of Warrant 

  	
   

  	 

	
  2.

  	
   

  	
  Representations

  	
   

  	 

	
  3.

  	
   

  	
  Certain Agreements of
  the Company

  	
   

  	 

	
  4.

  	
   

  	
  Antidilution Adjustments

  	
   

  	 

	
  5.

  	
   

  	
  Registration Rights

  	
   

  	 

	
  6.

  	
   

  	
  Mergers; Transfer of Assets

  	
   

  	 

	
  7.

  	
   

  	
  Transfer, Exchange, and Replacement

  	
   

  	 

	
  8.

  	
   

  	
  Notices

  	
   

  	 

	
  9.

  	
   

  	
  Governing Law,
  Jurisdiction and Venue

  	
   

  	 

	
  10.

  	
   

  	
  Miscellaneous

  	
   

  	 

	
   

  	
   

  	
  Appendix A — Definitions

  	
   

  	 

	
   

  	
   

  	
  Appendix B —
  Registration Rights

  	
   

  	 

 

 

STOCK
PURCHASE WARRANT

 

Neither this Warrant nor the Warrant Shares as defined
herein have been  registered under the
Securities Act of 1933, as amended, or any applicable state securities
laws.  Neither this Warrant nor the
Warrant Shares may be sold or transferred in the absence of such registration
or any exemption from such registration.

 

 

 

Right to Purchase up to
500,000 American Depository Shares

 

Dated as of  November 24, 2003

 

Insignia Solutions plc, a
company incorporated under the laws of England and Wales (the “Company”),
grants International Business Machines Corporation,  a New York corporation (“IBM” and each of its successors
and assigns, a “Holder”) a warrant (this “Warrant”) to purchase
the Warrant Shares at the Purchase Price (as defined in Section 1(a)
below).  Capitalized terms not otherwise
defined have the definitions set forth in Appendix A.

 

 

1.   Exercise
and Expiration of Warrant.

 

(a)           Initially, this Warrant shall not be
exercisable for any Warrant Shares. 
Upon achievement of the milestones set forth below (the “Milestones”),
this Warrant will be exercisable for the lot of Warrant Shares set forth
opposite such respective Milestones below up to an aggregate of 500,000 Warrant
Shares:

 

	
  Milestone

  	
   

  	
  Warrant
  Shares

  	
   

  
	
  [*]

  	
   

  	
  200,000

  	
   

  
	
  [*]

  	
   

  	
  100,000

  	
   

  
	
  [*]

  	
   

  	
  100,000

  	
   

  
	
  [*]

  	
   

  	
  100,000

  	
   

  

 

Upon achievement of each Milestone, IBM shall provide
written notice thereof, including the date such Milestone was achieved, to the
Company.  In the event that the Company
does not agree that such Milestone has been achieved, the Company may object in
writing to IBM within ten business days. 
In the event that the Company objects in writing to IBM within ten
business days and the Company and IBM are not able to agree to the achievement
or failure to achieve such Milestone, then the Company and IBM shall use
commercially reasonable efforts to choose

 

  [*]Certain information on this page has
been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.

 

 

an independent auditor to determine whether such
Milestone has been achieved, in which case the costs and expenses of such
independent auditor will be paid by the party against whom the independent
auditor ruled.  The lot of Warrant
Shares attributable to such Milestone shall be exercisable on the earlier of:
(a) the close of business on the tenth business day following IBM’s notice, if
the Company does not object thereto, (b) the close of business on the day the
Company acknowledges that such Milestone has been achieved, or (c) if the
Company so objects, the earlier of (i) the close of business on the first
business day following written agreement between the Company and IBM that the
Milestone has been achieved  or (ii) the
close of business on the day that an independent auditor chosen by the Company
and IBM determines that such Milestone has been achieved (such date of exercisability
is referred to herein as the “Milestone Completion Date”).  Promptly, but in no event greater than ten
(10) days following each Milestone Completion Date, the Company will send a
report, certified by the Chief Financial Officer of the Company (the “Company
Report”) to IBM updating the number of Warrant Shares exercisable hereunder as
of such date and the Purchase Price(s) for such Warrant Shares; provided,
however, that the failure of the Company to deliver such certificate shall not
affect the immediate vesting of the Warrants for such additional Warrant
Shares.

 

 

The Purchase Price for the Warrant Shares shall be (i)
in the case of the Warrant Shares exercisable upon achievement of the General
Announce of WEDM, a price equal to $1.03, and (ii) in the case of other Warrant
Shares a price equal to the average of $1.03 and the Market Price as of the
date the Milestone applicable to such Warrant Shares was achieved.

 

(b)           This Warrant will expire in its
entirety upon the third anniversary of the latest Milestone Completion
Date.  “Exercise Period” shall
mean, for a Warrant Share, the period of time between the Milestone Completion
Date for such Warrant Share and the third anniversary of such Milestone
Completion Date.

 

(c)           This Warrant may be exercised by the
Holder for the Warrant Shares during the Exercise Period applicable to such
Warrant Shares, in whole or in part, by delivering this Warrant to the Company
with payment of the Purchase Price in U.S. dollars.  If this Warrant is exercised in part, the Holder shall identify
in writing the specific lot or lots of Warrant Shares for which the Holder is
exercising, including the Milestone and Purchase Price for each such lot.  In lieu of such cash payment, the Holder may
also exercise the Warrant by delivery to the Company of a written notice of an election
to effect a cashless exercise for Warrant Shares pursuant to this Section 1(c)
(“Cashless Exercise”).  To effect a
Cashless Exercise, the Holder will surrender this Warrant for that number of
shares of Common Stock determined by multiplying the number of Warrant Shares
to which it would otherwise be entitled by a fraction, the numerator of which
shall be the difference between (i) the then current Market Price of a share of
Common Stock on the date of exercise and (ii) the Purchase Price, and the denominator
of which shall be the then current Market Price per share of Common Stock.  In the event that this Warrant is not
exercised in full immediately prior to the end of the Exercise Period and at
such time the then current Market Price of a share of the Common Stock is
greater than the Purchase Price, this Warrant

 

 

shall be deemed automatically exercised as to the
remaining Warrant Shares at such time by Cashless Exercise without the delivery
of any written notice from the Holder.

 

(d)  Upon exercise of this Warrant, the Company
will cause the issuance to the Holder (i) a certificate or certificates for the
number of full Warrant Shares to which the Holder shall be entitled upon such
exercise plus the value of any fractional share to which the Holder would
otherwise be entitled, and (ii) in case such exercise is in part only, a new
warrant or warrants representing the remaining Warrant Shares.

 

(d)  Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of business on the
day on which this Warrant shall have been surrendered pursuant to Section 1(c).

 

2.  Representations.

 

(a)  By the Holder.  The Holder represents and warrants to the Company as follows:

 

(i)            It is an “accredited investor” within
the meaning of Rule 501 of the Securities Act.   This Warrant is acquired for the Holder’s own account for
investment purposes and not with a view to any offering or distribution within
the meaning of the Securities Act and any applicable state securities
laws.  The Holder has no present
intention of selling or otherwise disposing of the Warrant or the Warrant
Shares in violation of such laws; and

 

(ii)           The Holder has sufficient knowledge
and expertise in financial and business matters so as to be capable of evaluating
the merits and risks of its investment in the Company.  The Holder understands that this investment
involves a high degree of risk and could result in a substantial or complete
loss of its investment.  The Holder is
capable of bearing the economic risks of such investment.

 

The Holder acknowledges that the Company has indicated
that the Warrant and the Warrant Shares have not been registered under the
Securities Act by reason of their issuance in a transaction exempt from the
registration requirements thereof, and that the Warrant Shares will bear a
legend stating that such securities have not been registered under the
Securities Act and may not be sold or transferred in the absence of such
registration or an exemption from such registration.

 

(b)  By the Company.  The Company represents and warrants that:

 

(i)  It (A) is a company duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (B) has all requisite power and authority to conduct its business
as now conducted and as presently contemplated and to consummate the
transactions contemplated hereby and (C) is duly qualified to do business and
is in good standing in each jurisdiction in which the character of the
properties owned or leased by it or in which the transaction of its business
makes such qualification necessary.

 

 

(ii)  It has outstanding as of September 30, 2003,
24,036,351 shares of Common Stock, calculated on a fully diluted basis, giving
effect to the conversion of all options, warrants, rights and other securities
convertible into, or exchangeable for, Common Stock.

 

(iii)  The execution, delivery and performance by
the Company of this Warrant (A) has been duly authorized by all necessary
corporate action, (B) does not and will not contravene the Company’s charter or
bylaws or any other organizational document and (C) does not and will not
contravene any applicable law or any contractual restriction binding on or
otherwise affecting the Company or any of its properties or result in a default
under any agreement or instrument to which the Company is a party or by which
the Company or its properties may be subject.

 

(iv)  This Warrant has been duly executed and
delivered by the Company, and is a legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except
as may be limited by applicable bankruptcy, insolvency, moratorium and other
laws affecting the rights of creditors generally and general principles of
equity.

 

(v)  Assuming the accuracy of the representations
made by the Holder in Section 2(a) hereof, no authorization, consent, approval,
license, exemption or other action by, and no registration, qualification,
designation, declaration or filing with, any governmental authority is or will
be necessary in connection with the execution and delivery by the Company of
this Warrant, the issuance by the Company of the Warrant Shares, the
consummation of the transactions contemplated hereby, the performance of or
compliance with the terms and conditions hereof, or to ensure the legality,
validity, and enforceability hereof.

 

(vi)  The Company has reserved solely for issuance
and delivery upon the exercise of this Warrant, such number of shares of Common
Stock to provide for the exercise in full of this Warrant.

 

(vii)  Neither the Company, nor any of its
Affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security or solicited any offers to
buy any security under circumstances that would require registration, or the
filing of a prospectus qualifying the distribution, of this Warrant being
issued hereby under the Securities Act or cause the issuance of this Warrant to
be integrated with any prior offering of securities of the Company for purposes
of the Securities Act.

 

3.  Certain
Agreements of the Company. 
The Company agrees as follows:

 

(a)   Shares to be Fully Paid.  All Warrant Shares will, upon issuance in
accordance with the terms of this Warrant, be validly issued, fully paid, and
nonassessable and free from all taxes, liens, claims and encumbrances.

 

(b)   Authorization and Reservation of  Shares. 
During the Exercise Period, the Company shall have duly authorized a
sufficient number of shares of Common Stock, free from preemptive

 

 

rights and from any other restrictions imposed by the
Company without the consent of the Holder, to provide for the exercise in full
of this Warrant.  The Company shall at
all times during the Exercise Period reserve and keep available out of such
authorized but unissued shares of Common Stock such number of shares to provide
for the exercise in full of this Warrant.

 

(c)    Certain Actions Prohibited.  The Company will not, by amendment of its
charter or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed by it hereunder, but will at all times in good
faith assist in the carrying out of all the provisions of this Warrant and in
the taking of all such action as may reasonably be requested by the Holder of
this Warrant in order to protect the exercise privilege of the Holder of this
Warrant against dilution or other impairment, consistent with the tenor and
purpose of this Warrant.

 

(d)   Successors and Assigns.  Except as expressly provided otherwise
herein, this Warrant will be binding upon any entity succeeding to the Company
by merger, consolidation, or acquisition of all or substantially all of the
Company’s assets.

 

(e)   Blue Sky Laws.  The Company shall, on or before the date of issuance of any
Warrant Shares, take such actions as the Company shall reasonably determine are
necessary to qualify the Warrant Shares for, or obtain exemption for the
Warrant Shares for, sale to the Holder of this Warrant upon the exercise
hereof  under applicable securities or
“blue sky” laws of the states of the United States, and shall provide written
evidence of any such action so taken to the Holder of this Warrant prior to
such date;  provided, however, that the
Company shall not be required to 
qualify as a foreign corporation or file a general consent to service of
process in any such jurisdiction.

 

(f)            Rule 144 Reports.  If the Company becomes subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, but only for
so long as the Company is so subject, the Company shall take all actions
reasonably necessary to enable the Holder to sell the Registrable Securities
without registration under the Securities Act within the limitations of the
exemptions provided by Rule 144 under the Securities Act, as such rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by
the SEC, including filing on a timely basis all reports required to be filed by
the Exchange Act.  Upon the request of
the Holder, the Company shall deliver to the Holder a written statement as to
whether it has complied with such requirements.

 

4.             Adjustments.  All references to the number of Warrant
Shares and the Purchase Price and all calculations related to the foregoing
shall be equitably adjusted to reflect any stock split, combination,
reorganization, recapitalization, reclassification, stock distribution, stock
dividend or similar event affecting the Common Stock during the period from the
date hereof until the end of the Exercise Period applicable to such Warrant
Shares.

 

 

5.  Registration
Rights.  The Warrant shall have the
Registration Rights set forth in Appendix B. 
Notwithstanding anything to the contrary contained herein (including in
Appendix B) the Holder agrees not to exercise any of the registration rights
set forth in Appendix B at any time that it is able to sell all of its Registrable
Securities pursuant to Rule 144 of the Securities Act in any three (3) month
period.

 

6.               Mergers;
Transfer of Assets.  If there
shall occur any capital reorganization or reclassification of the Company’s
Common Stock (other than a subdivision or combination as provided for in
Section 4), or any consolidation or merger of the Company with or into another
corporation, or a transfer of all or substantially all of the assets of the
Company, then, as part of any such reorganization, reclassification, consolidation,
merger or sale, as the case may be, lawful provision shall be made so that the
Holder of this Warrant shall have the right thereafter to receive upon the
exercise hereof the kind and amount of shares of stock or other securities or
property which such Holder would have been entitled to receive if, immediately
prior to any such reorganization, reclassification, consolidation, merger or
sale, as the case may be, such Holder had held the number of shares of Common
Stock which were then purchasable upon the exercise of this Warrant. In any
such case, appropriate adjustment (as reasonably determined in good faith by
the Board) shall be made in the application of the provisions set forth herein
with respect to the rights and interests thereafter of the Holder of this
Warrant, such that the provisions set forth herein shall thereafter be
applicable, as nearly as is reasonably practicable, in relation to any shares
of stock or other securities or property thereafter deliverable upon the
exercise of this Warrant.

 

7.  Transfer,
Exchange, and Replacement

 

(a)  Transferability.  (i)  The Holder covenants
not to transfer this Warrant or the Warrant Shares except in compliance with
this Section 7(a).  Subject to
compliance with the transfer restrictions set forth in clause (ii) of this
Section 7(a), this Warrant, the Warrant Shares and the rights granted to the
holder hereof are freely transferable, in whole or in part, upon surrender of
this Warrant, together with an assignment form, at the office or agency of the Company
referred to in Section 8 below.

 

(ii) The Holder shall not
effect any transfer of this Warrant or the Warrant Shares except pursuant to a
transaction either registered, or exempt from registration, under the
Securities Act.  Prior to any transfer in
reliance upon an exemption from such registration other than Rule 144 of the
Securities Act, the Holder shall provide to the Company an opinion letter from
counsel to the Holder (which counsel may include in-house counsel), reasonably
satisfactory to the Company, opining that such transfer does not require
registration under the Securities Act. 
The transferee pursuant to a transaction that is neither registered
under the Securities Act nor exempt from registration pursuant to Rule 144 of
the Securitites Act shall acknowledge in writing that it takes such Warrant
Shares subject to the terms and conditions hereof.  Until due presentment for registration of transfer on the books
of the Company, the Company may treat the registered Holder hereof as the owner
hereof for all purposes, and the Company shall not be affected by any notice to
the contrary.

 

 

(iii)  Notwithstanding the foregoing, IBM shall not
transfer this Warrant or the Warrant Shares prior to the first anniversary of
the date hereof.

 

(b)  Warrant Exchangeable for Different
Denominations.  This Warrant is
exchangeable, upon the surrender hereof by the Holder hereof at the office or
agency of the Company referred to in Section 8 below, for new warrants of like
tenor of different denominations representing in the aggregate the right to
purchase the number of shares of Common Stock which may be purchased hereunder,
each of such new warrants to represent the right to purchase such number of
shares as shall be designated by the Holder hereof at the time of such
surrender.

 

(c)  Replacement of Warrant.  Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction, or mutilation of
this Warrant and, in the case of any such loss, theft, or destruction, upon
delivery of an indemnity agreement reasonably satisfactory in form and amount
to the Company, or, in the case of any such mutilation, upon surrender and
cancellation of this Warrant, the Company, at its expense, will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

 

(d)   Cancellation; Payment of  Expenses. 
Upon the surrender of this Warrant in connection with any transfer,
exchange, or replacement as provided in this Section 7, this Warrant shall be
promptly canceled by the Company.  The
Company shall pay all taxes (other than securities transfer taxes) and all
other out-of-pocket expenses and charges payable in connection with the
preparation, execution, and delivery of warrants pursuant to this Section 7.

 

(e)   Warrant Register.  The Company shall maintain, at its  principal executive offices (or such other office or  agency of the Company as it may designate by
notice to the Holder hereof), a register for this Warrant, in which the Company
shall record  the name and address of
the person in whose name this Warrant has been issued, as well as the name and
address of each transferee and each prior owner of this Warrant.

 

8.   Notices.  Any notices required or permitted to be
given under the terms of this Warrant shall be sent by certified or registered
mail (return  receipt  requested) or delivered personally or by
courier or by confirmed telecopy, and 
shall be effective five days after being placed in the mail, if mailed,
or upon receipt or refusal of receipt, if delivered personally or by courier, or
by confirmed telecopy, in each case addressed 
to a party.  The addresses for
such communications shall be:

 

	
  If to
  the Company:

  	
   

  	
  If to
  IBM: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  David
  L. Johnson  

  Vice
  President, Corporate 

  Development  

  IBM
  Corporation  

  New
  Orchard Road  

  Mail
  Drop 329 

  Armonk, NY 10504

  

 

 

If to any other Holder, at such address as such Holder
shall have provided  in writing to the
Company, or at such other address as any Holder furnishes by notice given in
accordance with this Section 8.

 

9.   Governing
Law; Jurisdiction and Venue. 
This Warrant shall be governed by the laws of the State of New York,
without regard to conflicts or choice of law rules or principles.  Each of the Company and the Holder submits
to the exclusive jurisdiction and venue of the federal and state courts located
in New York, County of Westchester, to resolve all issues that may arise out of
or relate to this Warrant. The parties waive any right to a jury trial.

 

10.  Miscellaneous.

 

(a)  Amendments. 
This Warrant and any provision hereof may only be amended by an
instrument in writing signed by the Company and all Holders hereof.

 

(b)  U.S. Dollars.  All references in this Warrant to “dollars” or “$”
shall mean the U.S. dollar.

 

(c)  Fractional Shares.  The Company shall not be required upon the exercise of this
Warrant to issue any fractional shares, but shall make an adjustment therefor
in cash on the basis of the fair market value per share of Common Stock, as
determined in good faith by the Board.

 

(d)  Descriptive Headings.  The descriptive headings of the several
sections of this Warrant are inserted for purposes of reference only, and shall
not affect the meaning or construction of any of the provisions hereof.

 

(e)  Business Day.  For purposes of this Warrant, the term “business day” means
any day, other than a Saturday or Sunday or a day on which banking institutions
in New York, New York or the city and state provided in Section 8 hereof for
notices to the Company, are authorized or obligated by law, regulation or
executive order to close.

 

(f)  Counterparts. This agreement may be executed
in counterparts, and any such executed counterpart shall be, and shall be
deemed to be, an original instrument.

 

(g)  Severability.  If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, void or
unenforceable, it shall be deemed replaced with a valid and enforceable
provision, which comes as close as possible to the economic purpose of the
invalid, void or unenforceable provision, and the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated.

 

(h) Successors and
Assigns.  This Agreement shall be
binding on, and shall inure to the benefit of, the parties hereto and their
respective successors and assigns, including all Holders.

 

 

(i)  Survival. 
The representations, warranties and covenants made by the parties hereto
shall survive the execution and delivery of this Agreement.

 

IN WITNESS WHEREOF,  the undersigned have executed this Warrant
as of the date first written above.

 

	
  Insignia Solutions plc

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ PETER BERNARD

  	
   

  	
   

  
	
   

  	
  Name: Peter Bernard

  	
   

  
	
   

  	
  Title: Chief Product Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  INTERNATIONAL BUSINESS MACHINES CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ DAVID L. JOHNSON

  	
   

  	
   

  
	
   

  	
  Name: David L. Johnson

  	
   

  
	
   

  	
  Title: Vice President, Corporate Development

  	
   

  

 

 

Appendix A – Definitions

 

 

“Affiliate” shall
mean any entity directly or indirectly controlled by, controlling or under common
control with another entity.

 

“Board” shall mean
the Board of Directors of the Company.

 

“Cashless Exercise”
shall have the meaning specified in Section 1(c) of the Warrant.

 

“Company” shall
have the meaning specified in the initial paragraph of the Warrant.

 

“Common Stock”
shall mean the common shares of the Company.

 

“Demand Registration
Right” shall mean a right of the Holder under Appendix C(b).

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

“Exercise Period”
shall have the meaning specified in Section 1(a) of the Warrant.

 

“Holder” shall
have the meaning specified in the initial paragraph of the Warrant.

 

“IBM” shall have
the meaning specified in the initial paragraph of the Warrant.

 

“Market Price”
shall mean the following:  (i) the
average of the closing sale prices for the shares of Common Stock as reported
on the  principal trading exchange  or the Nasdaq National Market for the Common
Stock for the five (5) consecutive trading days immediately  preceding such date, or if no sale price is
so reported for such period, the last bid price for such period, or (ii) if the
foregoing does not apply, the last sale price of such security in the
over-the-counter market on the pink sheets or bulletin board for such security
on the last trading day immediately preceding such date, or if  no sale price is so reported for such
security, the average of the last bid and ask price for such security on the
last trading day immediately preceding such date, or (iii) if market value cannot
be calculated as of such date on any of 
the foregoing bases, the Market Price shall be the fair market
value  as reasonably determined by an
investment banking firm selected by the Company and reasonably acceptable to
the Holder, with the costs of the appraisal to be borne by the Company.

 

“Person” or “person”
shall mean all natural persons, corporations, business trusts, associations,
companies, partnerships, joint ventures, governments, agencies, political
subdivisions and other entities.

 

“Piggyback
Registration Right” shall mean a right of the Holder under Appendix C(a)

 

1

 

“Purchase Price”
shall have the meaning specified in Section 1(b) of the Warrant, as may be
adjusted from time to time pursuant to Appendix B.

 

“Registrable
Securities” shall mean the Warrant Shares issued or issuable with respect
to the Warrant.

 

“Registration Expenses”
shall mean all expenses incident to the Company’s performance of or compliance
with the registration provisions of Appendix C herein, including without
limitation (i) all fees and expenses of compliance with federal securities and
state securities laws; (ii) all U.S. Securities and Exchange Commission and
state securities laws filing fees; (iii) all printing expenses; (iv) all fees
and disbursements of counsel for the Company; and (v) all fees and
disbursements of accountants of the Company, but excluding (i) underwriter’s
discounts relating to securities sold by the Selling Holder; (ii) filings made
with the NASD and counsel fees in connection therewith; and (iii) fees and
disbursements of counsel for the Selling Holder.

 

“Registration Rights”
shall mean the Piggyback, Demand and S-3 registration rights set forth in Appendix
C.

 

“S-3 Registration
Right” shall mean a right of the Holder under Appendix C(c).

 

“Securities Act”
shall mean the Securities Act of 1933, as amended.

 

“Selling Holder”
shall have the meaning specified in Appendix C(d)(ii) of the Warrant.

 

“Warrant” shall
have the meaning specified in the initial paragraph of the Warrant.

 

“Warrant Shares”
shall mean American depository shares, each representing one ordinary share, 20
pence per share nominal value, of the Company.

 

2

 

Appendix B — Registration Rights

 

(a)  Piggyback Registration.

 

(i)  Participation.   If the Company elects to file a registration statement under the
Securities Act covering the offer and sale of any Common Stock (or equity
securities converted into Common Stock) in connection with any public offering
(other than a registration statement on Form S-8 or Form S-4, or their
successors, or any other form for a similar limited purpose, or any
registration statement covering only securities proposed to be issued in
exchange for securities or assets of another corporation), the Company shall
give written notice thereof to the Holder at least twenty business days before
filing. The Holder shall have a Piggyback Registration Right to participate in
such offering on a pro rata basis with the Company and any other Holders upon
the giving of notice to the Company within ten business days of receipt by it
of notice from the Company. If the Holder notifies the Company of its intent to
exercise such Piggyback Registration Right, subject to (a)(ii) below, the
Company shall include in such registration statement such number of shares of
Registrable Securities as requested by the Holder. Such Registrable Securities
shall be included in the underwriting for the public offering on the same terms
and conditions as the securities otherwise being sold in such offering.

 

(ii)  Underwriters’ Cutback.  If, in the opinion of the managing
underwriter of such offering the inclusion of all of the shares of Registrable
Securities and other Common Stock requested to be registered would be
inappropriate, then the number of shares of Registrable Securities and other
Common Stock to be included in the offering shall be reduced, with the

participation in such
offering to be in the following order of priority:  (1) first, securities to be issued by the Company shall be
included, and (2) second, any other Common Stock required to be included
pursuant to any demand registration right granted to such other holder of
Common Stock shall be included, and (3) third Registrable Securities and any
other Common Stock requested to be included, on a pro rata basis (based upon
the number of registrable securities owned by the Holder and the holders of
Common Stock requesting participation in the offering), shall be included.

 

(iii)  Registrant Controls.  The Company may decline to file a
Registration Statement after giving notice to any Holder, or withdraw a
Registration Statement after filing and after such notice, but prior to the
effectiveness thereof, provided that such registrant shall promptly notify each
Holder of Registrable Securities in writing of any such action and provided
further that such registrant shall bear all reasonable expenses incurred by
such Holder of Registrable Securities or otherwise in connection with such
withdrawn Registration Statement.

 

(iv)  Underwriting Agreement.  In connection with any registration under
this Section (a) involving an underwriting, the Company shall not be required
to include any Registrable Shares in such registration unless the Holder accepts
the terms of the underwriting as determined by the underwriters selected by the
Company  (provided that such terms must
be consistent with this Agreement and provided, further, that any inability of
the Holder to agree with the underwriters shall not restrict the ability of the
Company to proceed with the registration).

 

3

 

(b)  Demand Registration Rights.

 

(i)            In General. Subject to clauses (ii)
and (v) of this paragraph  (b), the
Holder may request on one occasion by written notice to the Company that the
Company file a Registration Statement under the Securities Act covering the
Registrable Securities at any time, provided, however, that the
Holder shall not exercise such Demand Registration Right unless the reasonably
anticipated aggregate price to the public, net of underwriting discounts and
commissions, is in excess of $500,000.

 

(ii)           Effectiveness. Subject to the
following sentences, the Company shall be obligated to prepare, file and use
its best efforts to cause a Registration Statement to become effective in
connection with each Demand Registration requested pursuant to (b), and to
remain effective for a period of ninety days or until the sale of all
securities registered thereunder. 
If  (A)  the Company withdraws a Registration Statement filed pursuant to
a Demand Registration prior to the effectiveness thereof, or  (B) 
the sale of securities to which a Registration Statement filed pursuant
to a Demand Registration applies is not consummated other than by action of the
Selling Holder, such Registration Statement shall not be counted in determining
the number of registrations in which Holder’s securities have been included or
otherwise adversely affect Holder’s rights hereunder.

 

(iii)          Piggyback Registrations on Demand
Registration Rights.  The Company and
other holders of Common Stock of the Company may include such securities in
registrations made pursuant to (b) only if the managing underwriter concludes that
such inclusion will not interfere with the successful marketing of all the
Registrable Securities requested to be included in such registration .

 

(iv)          Managing Underwriter.  The managing underwriter or underwriters of
any underwritten public offering covered by a Demand Registration shall be
selected by the Holders of a majority of the shares of Registrable Securities
that participate in such registration, subject to the approval of the Board,
which approval shall not be unreasonably withheld.

 

(v)           Company’s Right to Defer.  If the Company is requested to effect a
Demand Registration and the Company furnishes to the Holders of Registrable
Securities requesting such registration a copy of a resolution of the Board
certified by the Secretary of the Company stating that in the good faith judgment
of the Board it would be seriously detrimental to the Company and its
stockholders for such registration statement to be filed on or before the date
such filing would otherwise be required hereunder, the Company shall have the
right to defer such filing for a period of not more than 90 days after receipt
of the request for such registration from the Holder or Holders of Registrable
Securities requesting such registration; provided that during such time the
Company may not file a registration statement (other than a registration
statement on Form S-4 or Form S-8 or a registration statement already approved
by the Board) for securities to be issued and sold for its own account or that
of anyone other than the Holder or Holders of Registrable Securities requesting
such registration.

 

4

 

(c)  Registration on Form S-3.

 

(i)  The 
Company will use its best efforts to qualify for the registration of its
securities on Form S-3 (or any successor form).  Subject to paragraph (h) of this Appendix C, if the Holder
requests that the Company file a Registration Statement on Form S-3 (or any
successor form) for a public offering of 
Registrable Securities the reasonably anticipated aggregate price to the
public of which, net of underwriting discounts and commissions, would exceed
$500,000, and the Company is a registrant entitled to use Form S-3 to register
the Registrable Securities for such an offering, the Company shall use its best
efforts to cause such Registrable Shares to be registered for the offering on
such form and to cause such Registrable Securities to be qualified in such
jurisdictions as the Holder may reasonably request; provided, however,
that the Company shall not be required to effect more than one (1) such registration
at the request of the Holder.  The
Company shall prepare and file any amendments and supplements to such
registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all the Registrable
Securities.

 

(ii)  Notwithstanding the foregoing, the Company
shall not be obligated to take any action pursuant to this section (c) during
the period starting with the date sixty (60) days prior to the Company’s good
faith estimate of the date of filing of, and ending on a date one hundred
eighty (180) days following the effective date of, a Company-initiated
Registration Statement that is subject to paragraph (a) of this Appendix C,
provided that the Company is actively employing in good faith all
reasonable effort to cause such Registration Statement to become effective.

 

(d)  Indemnification.

 

(i)  Indemnification by the Company.  The Company agrees to indemnify and hold harmless
any Holder of Registrable Securities which has included Registrable Securities
in a registration statement, its officers, directors and agents and each
Person, if any, who controls such Holder within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act  from and against any and all losses, claims, damages, liabilities
and expenses (including reasonable attorneys fees and costs of investigation)
arising out of or based upon any untrue statement or alleged untrue statement of
a material fact contained in any registration statement or final prospectus
relating to the Registrable Securities or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or based upon any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except insofar as such losses, claims, damages, liabilities or expenses arise
out of, or are based upon, any such untrue statement or omission based upon
information furnished in writing to Company by the Holder of the Registrable
Securities or on such Holder’s behalf expressly for use therein; provided, that
with respect to any untrue statement or omission made in any preliminary prospectus,
the indemnity agreement contained in this paragraph shall not apply to the
extent that any such loss, claim, damage, liability or expense results from the
fact that a current copy of the prospectus was not sent or given to the person
asserting any such loss, claim, damage, liability or expense at or prior

 

5

 

to the written confirmation of the sale of the
Registrable Securities concerned if it is determined that it was the
responsibility of the Holder of such Registrable Securities to provide such
person with a current copy of the prospectus and such current copy of the
prospectus would have cured the defect giving rise to such loss, claim, damage,
liability or expense. The Company also agrees to indemnify any underwriters of
the Registrable Securities, their officers and directors and each person who
controls such underwriters on substantially the same basis as that of the
indemnification of the Holder of such Registrable Securities provided in this section
(d).

 

(ii)  Indemnification by the Holder of Registrable
Securities.  The Holder of Registrable
Securities, to the extent it is selling Registrable Securities (“Selling
Holder”), agrees to indemnify and hold harmless the Company, its directors
and officers and each Person, if any, who controls the Company within the
meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the foregoing indemnity from the Company to
the Selling Holder, but only with respect to, and to the extent that,
information furnished in writing by the Selling Holder or on the Selling
Holder’s behalf expressly for use in any registration statement or final
prospectus relating to the Registrable Securities (or any amendment or supplement
thereto, or any preliminary prospectus) which contained an untrue statement or
alleged untrue statement of a material fact or omitted or allegedly omitted to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading. Notwithstanding anything to the
contrary contained herein, the liability of the Holder hereunder shall be
limited to the proportion of any such loss, claim, damage, liability or expense
that is equal to the proportion that the public offering price of the shares of
Registrable Securities sold by the Holder bears to the total public offering
price of all securities sold in such offering. 
The Selling Holder also agrees to indemnify and hold harmless the
underwriters on substantially the same basis of that of the indemnification of
the Company provided in the preceding subsection.

 

(e)  Contribution.  If the indemnification provided for in this Appendix C is
unavailable to the Company, the Selling Holder or the underwriters in respect
of any losses, claims, damages, liabilities, expenses or judgments referred to
herein, then each such indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such

indemnified party as a result of such losses, claims,
damages, liabilities, expenses and judgments (i) as between the Company and the
Selling Holder on the one hand and the underwriters on the other, in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Selling Holder on the one hand and the underwriters on the
other from the offering of the Registrable Securities, or if such allocation is
not permitted by applicable law, in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the
Company and the Selling Holder on the one hand and of the underwriters on the
other in connection with the statements or omissions which resulted in such
losses, claims, damages, liabilities, expenses or judgments, as well as any
other relevant equitable considerations and (ii) as between the Company on the
one hand and each Selling Holder on the other, in such proportion as is
appropriate to reflect the relative fault of the Company and of each Selling Holder
in connection with such statements or omissions, as well as any other relevant
equitable considerations.  The relative
benefits received by the Company and the Selling Holder on the one

 

6

 

hand and the underwriters on the other shall be deemed
to be in the same proportion as the total proceeds from the offering (net of
underwriting discounts and commissions but before deducting expenses) received
by the Company and the Selling Holder bear to the total underwriting discounts
and commissions received by the underwriters, in each case as set forth in the
table on the cover page of the prospectus. 
The relative fault of the Company on the one hand and of each Selling Holder
on the other shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
such party, and the party’s relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

 

The Company and the
Holder agree that it would not be just and equitable if contribution pursuant
to this section were determined by pro rata allocation or by any other method
of allocation which does not take account of the equitable considerations
referred to in the immediately preceding paragraph.  The amount paid or payable by an indemnified party as a result of
the losses, claims, damages, liabilities, expenses or judgments referred to in
the immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim.  Notwithstanding the
provisions of this section, no underwriter shall be required to contribute any
amount in excess of the amount by which the total price at which the
Registrable Securities underwritten by it and distributed to the public were
offered to the public exceeds the amount of any damages which such underwriter
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission, and no Selling Holder shall be
required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities of such Selling Holder were offered
to the public exceeds the amount of any damages which such Selling Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

 

(f)  Registration Expenses and Enforcement.

 

(i)  Registrations Rights.  The Company shall bear all Registration
Expenses incurred in connection with Piggyback Registration Rights, the Demand
Registration Right and the S-3 Registration Right.

 

(ii)  Expenses of Registrant.  The Company 
shall pay its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit, the fees and expenses
incurred in connection with any listing of the securities to be registered on a
securities exchange, and the fees and expenses of any person, including special
experts, retained by the Company.

 

(iii)  Enforcement of Registration Rights.  Notwithstanding anything to the contrary
contained herein, the Company hereby agrees that each Holder of Registrable
Securities

 

7

 

shall be entitled to specific performance of the
registration rights hereunder, and that the Company shall pay any expenses,
including without limitation attorneys’ fees, in connection with the
enforcement by any Holder of such specific performance.

 

(g)  Assignment of Registration Rights.  Any of the 
rights of the Holders hereunder, including the right to have the Company
register Registrable Securities pursuant 
to this Agreement, may be assigned 
by each Holder to any transferee of all or any portion of the Warrant or
the Registrable Securities if: (i)  the
Holder agrees in writing with the transferee or assignee to assign such rights,
and a copy of such agreement is furnished to the Company after such assignment,
(ii) the Company is furnished with written notice of (A) the name and address
of such transferee or assignee, and (B) the securities with respect to which
such registration rights are being transferred or assigned,  (iii) 
following such transfer or assignment, the further disposition of such
securities by the transferee or assignee is restricted under the Securities Act
and applicable state securities laws, and (iv) such transfer shall have been
made in accordance with the applicable requirements of the Warrant. The
transferee, by acceptance of the transfer of any registration rights hereunder,
acknowledges that it takes such rights subject to the terms and conditions
hereof.  Upon any transfer of less than
all of its Registrable Securities, the Holder retains registration rights with
respect to Registrable Securities held by it.

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]