EXHIBIT 1
FIRST AMENDMENT TO THE SERIES C PREFERRED
STOCK PURCHASE AGREEMENT
THIS FIRST AMENDMENT TO THE SERIES C PREFERRED STOCK PURCHASE
AGREEMENT is made as of the 31st day of December, 2001, by and among USDATA
Corporation, a Delaware corporation (the "Company") and SCP Private Equity
Partners II, L.P., a Delaware limited partnership (the "Investor").
WHEREAS, the Company and the Investor are parties to that
certain Series C Preferred Stock Purchase Agreement dated March 30, 2001 (the
"Original Agreement"); and
WHEREAS, the Company and the Investor desire to amend the
Original Agreement to provide for an extension of the Company's right to sell
shares of the Option Preferred Stock and to provide the Investor with warrant
coverage for one-half of the Option Preferred Stock purchased by the Investor.
NOW THEREFORE, in consideration of the mutual promises
hereinafter set forth, the parties hereto, each intending to be legally bound
hereby, agree as follows:
1. AMENDMENT TO THE ORIGINAL AGREEMENT.
1.1 Amendment to Section 1.4. Section 1.4 of the Original
Agreement shall be renumbered as Section 1.4(a), and a new Section 1.4(b) shall
be added reading in its entirety as follows:
1.4(b) On the basis of the representations, warranties and
agreements herein contained, and upon the terms but subject to
the conditions herein set forth and the unanimous approval of
all disinterested members of the board of directors of the
Company with respect to the acceptance of this commitment by
the Investor and the exercise by the Company of its right to
sell shares of stock hereunder, the Investor commits to
purchase the remaining 21,250 shares of the Option Preferred
Stock not purchased under Section 1.4(a) hereof (the
"Remainder Stock") at the purchase price of $40.00 per share
of Option Preferred Stock at the sole option of the Company.
The Company may exercise its right to sell shares of the
Remainder Stock on or before December 31, 2002, by means of a
written notice therefore to the Investor (each, a "Notice")
which certifies (a) the amount of Remainder Stock the Company
wishes to sell to the Investor, (b) that the proceeds of the
issuance of Remainder Stock will be used solely for general
corporate purposes, provided, however, that such
proceeds shall not be used, directly or indirectly, for or on
account of the settlement or defense of any suit or proceeding
brought against the Company regarding its headquarters' lease
agreement (c) that the Company will issue a warrant in favor
of the Investor for the purchase of shares of the Company's
Series C-2 Preferred Stock in the amount of one-half of the
number of Remainder Stock issued. All other conditions and
requirements set forth in Section 1.4(a) with respect to the
exercise by the Company of its right to sell shares of the
Option Preferred Stock shall be inapplicable with respect to
the Remainder Stock. Each Notice must be received by the
Investor not less than ten (10) business days prior to the
desired date of payment. The purchase and sale of the
Remainder Stock pursuant to this Section may take place in one
or more closings at such times or places as the Company and
the Investor may mutually agree (each a "Remainder Closing").
At each Remainder Closing, the Company shall deliver to the
Investor a certificate or certificates, registered in the
Investor's name, representing such number of shares of
Remainder Stock purchasable for the amount of the Purchase
Price Installment to be paid to the Company, against payment
of such Purchase Price Installment therefore, by check payable
to the Company or wire transfer in accordance with the
Company's instructions. The Investor's obligation to purchase
the Remainder Stock at a Remainder Closing is conditioned upon
the Investor's receipt of a certificate, dated as of the date
of such Remainder Closing (the "Remainder Closing Date"), and
signed by an executive officer of the Company, certifying that
the representations contained in Section 2 of this Agreement,
are true and correct at and as of such Subsequent Closing
Date.
1.2 Amendment to Section 2.5. Section 2.5 of the Original
Agreement is hereby amended and restated in its entirety to read as follows:
2.5 Stockholder Approval. Except as otherwise provided in
Section 1.4 of the Agreement and Section 1.1 of the Warrant,
approval by the stockholders of the Company is not required
for the authorization, execution and delivery of this
Agreement, the Warrant, and the Second Amended and Restated
Investors' Rights Agreement, the performance of all
obligations of the Company hereunder and thereunder, and the
authorization, issuance (or reservation for issuance) and
delivery of the Securities being sold hereunder, the Series C
Preferred Stock issuable upon exercise of the Warrant and the
Common Stock issuable upon conversion of the Series C
Preferred Stock. The Company agrees to use its best efforts to
obtain stockholder approval of the transactions contemplated
in Section 1.4(a) of the Agreement and Section 1.1
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of the Warrant, as soon as practicable, but no later than the
date of the Company's next Annual Meeting of Stockholders.
2. GOVERNING LAW. This Amendment and related agreements,
instruments and documents shall be governed by, and construed and enforced in
accordance with the laws of the State of Delaware, without regard to its
otherwise applicable conflicts of laws rules.
3. NON-WAIVER. Except as otherwise expressly set forth herein,
this Amendment does not and shall not be deemed to constitute a waiver by the
parties hereto of any breach or violation of any representation, warranty or
covenant contained in the Original Agreement, and all claims and rights of the
non-breaching party resulting from any such breach or violation are expressly
reserved by such non-breaching party.
4. INCORPORATION AND REAFFIRMATION. This Amendment shall amend and
is incorporated into and made part of the Original Agreement. To the extent that
any term or provision of this Amendment may be deemed expressly inconsistent
with any term or provision in the Original Agreement, the terms and provisions
of this Amendment shall control. Except as expressly amended by this Amendment,
all of the terms, conditions and provisions of the Original Agreement are hereby
ratified and continue unchanged and remain in full force and effect.
5. ENTIRE AGREEMENT. Subject to Section 4 above, this Amendment
constitutes the complete understanding of the parties hereto regarding the
subject matter hereof and supersedes any and all other agreements, either oral
or in writing, between the parties hereto with respect to the subject matter
hereof, and no other agreements, either oral or in writing, between the parties
hereto with respect to the subject matter hereof, and no other statement or
promise relating to the subject matter hereof which is not contained herein,
shall be valid or binding.
6. BINDING EFFECT. This Amendment shall be binding upon and shall
inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, trustees, representatives, successors and permitted
assigns.
7. NO MODIFICATION. No modification of this Amendment or any
related agreements, instruments or documents shall be binding or enforceable
unless in writing and signed on behalf of the party against whom enforcement is
sought.
8. SEVERABILITY. The provisions of this Amendment are to be deemed
severable and the invalidity, illegality or unenforceability of one or more of
the provisions of this Amendment in any jurisdiction shall not affect the
validity, legality or enforceability of the remaining provisions of this
Amendment in such jurisdiction, or the validity, legality or enforceability of
this Amendment, including any such provision, in any other jurisdiction.
9. HEADINGS. The headings of any section or paragraph of this
Amendment are for convenience of reference only and shall not be used to
interpret any provision of this Amendment.
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10. EXECUTION BY COUNTERPARTS AND FACSIMILE. This Amendment may be
executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one
and the same agreement. Signature by facsimile shall also bind the parties
hereto.
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IN WITNESS WHEREOF, the parties have executed this First
Amendment to the Series C Preferred Stock Purchase Agreement as of the date
first above written.
COMPANY:
USDATA CORPORATION
By: /s/ XXXXXX XXXXX
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Xxxxxx Xxxxx,
Chief Executive Officer
INVESTOR:
SCP PRIVATE EQUITY PARTNERS II, L.P.
By: SCP Private Equity II General Partner,
L.P., its General Partner
By: SCP Private Equity II LLC,
its Manager
By: /s/ XXXXXXX X. XXXXXXXXX
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Name: Xxxxxxx X. Xxxxxxxxx
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Title: __________________________________
