VIA FEDERAL EXPRESS June 14, 2002 Carol Parrella Chief Financial Officer IronPlanet.com, Inc. 4695 Chabot Drive, Suite 200 Pleasanton, CA 94588
Exhibit 4.5
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XXX XXXXXXX XXXXXXX
Xxxx 00, 0000
Xxxxx Xxxxxxxx
Chief Financial Officer
XxxxXxxxxx.xxx, Inc.
0000 Xxxxxx Xxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Chief Financial Officer
XxxxXxxxxx.xxx, Inc.
0000 Xxxxxx Xxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Re: Series A Preferred Warrant Agreement dated April 19, 2000 (“Warrant
Agreement”) issued in conjunction with the Master Lease Agreement dated
April 19, 2000, Equipment Schedule Nos. VL-1 and VL-2 dated as of April
19, 2000 by and between Comdisco, Inc. (“Warrantholder”) and
xxxxXxxxxx.xxx, Inc. (“Company”)
Dear Xxxxx,
Pursuant to the initial closing of the Company’s Series B Preferred
Stock financing on April 28, 2000, this letter confirms that
Warrantholder and the Company hereby agree that the Exercise Price under
the Warrant Agreement is $1.8275 per share of Series A Preferred Stock
and that Warrantholder has the right to purchase 21,887 shares of Series
A Preferred Stock for an aggregate price of $39,998.49 pursuant to the
terms of the Warrant Agreement.
Except as specifically set forth above, all other terms and conditions
of the Warrant Agreement shall remain in full force and effect
including any adjustments under Section 8.
Please indicate your acceptance by signing in the space provided below
and returning to the undersigned and I will have it countersigned and
will forward a copy to you to attach to your copy of the warrant. If
you have any questions, please do not hesitate to call me at (000)
000-0000.
| Sincerely, | ||||||
| XxxxXxxxxx.xxx, Inc. | ||||||
|
By: | /s/ Xxxxx Xxxxxxxx | ||||
Xxxxxxxxx Xxxx
|
Title: | CFO/CAO | ||||
Equity Portfolio Manager |
||||||
| Comdisco, Inc. | ||||||
| By: | /s/ | |||||
| Title: | Managing Director, Comdisco Ventures | |||||
COMDISCO VENTURES
XXX XXXX
XXXXXX, XXXXX 0000 | XXX XXXXXXXXX, XXXXXXXXXX 00000-0000 | TEL 000.000.0000 | FAX 000.000.0000
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE
COMPANY COUNSEL) REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAW.
To Purchase Shares of the Series A Preferred Stock of
XXXXXXXXXX.XXX,
INC.
Dated as of April 19, 2000 (the “Effective Date”)
WHEREAS, xxxxXXxxxx.xxx Inc., a Delaware corporation (the “Company”) has entered into a
Master Lease Agreement dated as of April 19, 2000, Equipment Schedule No. VL-1 and VL-2 dated as
of April 19, 2000, and related Summary Equipment Schedules (collectively, the “Leases”) with
Comdisco, Inc., a Delaware corporation (the “Warrantholder”); and
WHEREAS, the Company desires to grant to Warrantholder, in consideration for such Leases, the
right to purchase shares of its Series A Preferred Stock;
NOW,
THEREFORE, in consideration of the Warrantholder executing and delivering such Leases
and in consideration of mutual covenants and agreements contained herein, the Company and
Warrantholder agree as follows:
1. GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK.
The Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the
terms and subject to the conditions hereinafter set forth, to subscribe to and purchase, from the
Company, that number of fully paid and non-assessable shares of the Company’s Series A Preferred
Stock (“Preferred Stock”) equal to $40,000 divided by the numeric average of $0.655 per share and
the Series B Preferred Stock price of $3.00 per share. For purposes of calculating the numeric
average herein, the price per share of the Next Event snail be capped at a fully diluted pre-money
valuation of the Company (based on shares and options outstanding immediately prior to the Next
Event) as of the Next Event of One Hundred Million Dollars ($100,000,000).
“Next Event” means the earlier of (1) the closing of Borrower’s next round of private or
public equity financing; or (2) the effective date of a merger or consolidation of the Company with
or into another corporation whether or not the Company is the surviving corporation, or (3) a
distribution to shareholders in connection with the sale of all or substantially all of the
Company’s properties and assets to any other person. The number and purchase price of such
shares are subject to adjustment as provided in Section 8 hereof.
2. TERM OF THE WARRANT AGREEMENT.
Except as otherwise provided for herein, the term of this Warrant Agreement and the
right to purchase Preferred Stock as granted herein shall commence on the Effective Date and shall
be exercisable for a period of (i) seven (7) years or (ii) five (5) years from the effective date
of the Company’s initial public offering, whichever is longer.
3. EXERCISE OF THE PURCHASE RIGHTS.
(a) Exercise. The purchase rights set forth in this Warrant Agreement are
exercisable by the
Warrantholder, in whole or in part, at any time, or from time to time, prior to the expiration of
the term set forth in Section 2 above, by tendering to the Company at its principal office a
notice of exercise in the form attached hereto as EXHIBIT I (the “Notice of Exercise”), duly
completed and executed. Promptly upon receipt of the Notice of Exercise and the payment of the
purchase price in accordance with the terms set forth below, and in no event later than twenty-one
(21) days thereafter, the Company shall issue to the Warrantholder a certificate for the number of
shares of Preferred Stock purchased and shall execute the acknowledgment of exercise in the form
attached hereto
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Exercise and the payment of the purchase price in accordance with the terms set forth below,
and in no event later than twenty-one (21) days thereafter, the Company shall issue to the
Warrantholder a certificate for the number of shares of Preferred Stock purchased and shall
execute the acknowledgment of exercise in the form attached hereto as EXHIBIT II (the
“Acknowledgment of Exercise”) indicating the number of shares which remain subject to future
purchases, if any.
| The Exercise Price may be paid at the Warrantholder’s election either (i) by cash or check, or (ii) by surrender of Warrants (“Net Issuance”) as determined below. If the Warrantholder elects the Net Issuance method, the Company will issue Preferred Stock in accordance with the following formula: |
| X = Y(A-B) A |
||||
Where:
|
X = | the number of shares of Preferred Stock to be issued to the Warrantholder. | ||
| Y = | the number of shares of Preferred Stock requested to be exercised under this Warrant Agreement. | |||
| A = | the fair market value of one (1) share of Preferred Stock. | |||
| B = | the Exercise Price. |
| For purposes of the above calculation, current fair market value of Preferred Stock shall mean with respect to each share of Preferred Stock: |
(i) if the exercise is in connection with an initial public offering of the Company’s Common
Stock, and if the Company’s Registration Statement relating to such public offering has
been declared effective by the SEC, then the fair market value per share shall be the
product of (x) the initial “Price to Public” specified in the final prospectus with
respect to the offering and (y) the number of shares of Common Stock into which each share
of Preferred Stock is convertible at the time of such exercise;
(ii) if this Warrant is exercised after, and not in connection with the Company’s initial public
offering, and:
(a) if traded on a securities exchange, the fair market value shall be deemed
to be the product of (x) the average of the closing prices over a five (5) day
period ending three days before the day the current fair market value of the
securities is being determined and (y) the number of shares of Common Stock into
which each share of Preferred Stock is convertible at the time of such exercise; or
(b) if actively traded over-the-counter, the fair market value shall be deemed
to be the product of (x) the average of the closing bid and asked prices quoted on
the NASDAQ system (or similar system) over the five (5) day period ending three days
before the day the current fair market value of the securities is being determined
and (y) the number of shares of Common Stock into which each share of Preferred
Stock is convertible at the time of such exercise;
(iii) if at any time the Common Stock is not listed on any securities exchange or
quoted in the NASDAQ System or the over-the-counter market, the current fair market value
of Preferred Stock shall be the product of (x) the highest price per share which the
Company could obtain from a willing buyer (not a current employee or director) for shares
of Common Stock sold by the Company, from authorized but unissued shares, as determined in
good faith by its Board of Directors and (y) the number of shares of Common Stock into
which each share of Preferred Stock is convertible at the time of such exercise, unless the
Company shall become subject to a merger, acquisition or other consolidation pursuant to
which the Company is not the surviving party, in which case the fair market value of
Preferred Stock shall be deemed to be the value received by the holders of the Company’s
Preferred Stock on a common equivalent basis pursuant to such merger or acquisition.
Upon partial exercise by either cash or Net Issuance, the Company shall promptly issue an
amended Warrant Agreement representing the remaining number of shares purchasable hereunder. All
other terms and conditions of such amended Warrant Agreement shall be identical to those contained
herein, including, but not limited to the Effective Date hereof.
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(b) Exercise Prior to Expiration. To the extent this Warrant is not previously
exercised as to all Preferred Stock subject hereto, and if the fair market value of one share of
the Preferred Stock is greater than the Exercise Price then in effect, this Warrant shall be
deemed automatically exercised pursuant to Section 3(a) above (even if not surrendered)
immediately before its expiration. For purposes of such automatic exercise, the fair market value
of one share of the Preferred Stock upon such expiration shall be determined pursuant to Section
3(a) above. To the extent this Warrant or any portion thereof is deemed automatically exercised
pursuant to this Section 3(b), the Company agrees to promptly notify the Warrantholder of the
number of Preferred Stock, if any, the Warrantholder is to receive by reason of such automatic
exercise.
4. RESERVATION OF SHARES.
During the term of this Warrant Agreement, the Company will at all times have
authorized and reserved a sufficient number of shares of its Preferred Stock to provide for the
exercise of the rights to purchase Preferred Stock as provided for herein.
5. NO FRACTIONAL SHARES OR SCRIP.
No fractional shares or scrip representing fractional shares shall be issued upon the
exercise of the Warrant, but in lieu of such fractional shares the Company shall make a cash
payment therefor upon the basis of the Exercise Price then in effect.
6. NO RIGHTS AS SHAREHOLDER.
This Warrant Agreement does not entitle the Warrantholder to any voting rights or other
rights as a shareholder of the Company prior to the exercise of the Warrant.
7. WARRANTHOLDER REGISTRY.
The Company shall maintain a registry showing the name and address of the registered
holder of this Warrant Agreement.
8. ADJUSTMENT RIGHTS.
The purchase price per share and the number of shares of Preferred Stock purchasable
hereunder are subject to adjustment, as follows:
(a) Merger and Sale of Assets. If at any time there shall be a capital reorganization of the
shares of the Company’s stock (other than a combination, reclassification, exchange or subdivision
of shares otherwise provided for herein), or a merger or consolidation of the Company with or into
another corporation whether or not the Company is the surviving corporation, or the sale of all or
substantially all of the Company’s properties and assets to any other person (hereinafter referred
to as a “Merger Event”), then, as a part of such Merger Event, lawful provision shall be made so
that the Warrantholder shall thereafter be entitled to receive, upon exercise of the Warrant, the
number of shares of preferred stock or other securities of the successor corporation resulting from
such Merger Event, equivalent in value to that which would have been issuable if Warrantholder had
exercised this Warrant immediately prior to the Merger Event. In any such case, appropriate
adjustment (as determined in good faith by the Company’s Board of Directors) shall be made in the
application of the provisions of this Warrant Agreement with respect to the rights and interest of
the Warrantholder after the Merger Event to the end that the provisions of this Warrant Agreement
(including adjustments of the Exercise Price and number of shares of Preferred Stock purchasable)
shall be applicable to the greatest extent possible.
(b) Reclassification of Shares. If the Company at any time shall, by combination,
reclassification, exchange or subdivision of securities or otherwise, change any of the securities
as to which purchase rights under this Warrant Agreement exist into the same or a different number
of securities of any other class or classes, this Warrant Agreement shall thereafter represent the
right to acquire such number and kind of securities as would have been issuable as the result of
such change with respect to the securities which were subject to the purchase rights under this
Warrant Agreement immediately prior to such combination, reclassification, exchange, subdivision or
other change.
(c) Subdivision or Combination of Shares. If the Company at any time shall combine or
subdivide its Preferred Stock, the Exercise Price shall be proportionately decreased in the case
of a subdivision, or proportionately increased in the case of a combination.
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(d) Stock Dividends. If the Company at any time shall pay a dividend payable in, or make
any other distribution (except any distribution specifically provided for in the foregoing
subsections (a) or (b)) of the Company’s stock, then the Exercise Price shall be adjusted, from and
after the record date of such dividend or distribution, to that price determined by multiplying the
Exercise Price in effect immediately prior to such record date by a fraction (i) the numerator of
which shall be the total number of all shares of the Company’s stock outstanding immediately prior
to such dividend or distribution, and (ii) the denominator of which shall be the total number of
all shares of the Company’s stock outstanding immediately after such dividend or distribution. The
Warrantholder shall thereafter be entitled to purchase, at the Exercise Price resulting from such
adjustment, the number of shares of Preferred Stock (calculated to the nearest whole share)
obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the
number of shares of Preferred Stock issuable upon the exercise hereof immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment.
(e) Anti-dilution Rights. Warrantholder will be granted any anti-dilution rights granted to
holder’s of Series A Preferred Stock in the future. There are no anti-dilution rights applicable to
the Series A Preferred Stock as of the effective hereof.
(f) Notice of Adjustments. If: (i) the Company shall declare any dividend or distribution
upon its stock, whether in cash, property, stock or other securities; (ii) the Company shall offer
for subscription prorata to the holders of any class of its Preferred or other convertible stock
any additional shares of stock of any class or other rights; (ii) there shall be any Merger Event;
(iv) there shall be an initial public offering; or (v) there shall be any voluntary dissolution,
liquidation or winding up of the Company; then, in connection with each such event, the Company
shall send to the Warrantholder: (A) at least twenty (20) days’ prior written notice of the date on
which the books of the Company shall close or a record shall be taken for such dividend,
distribution, subscription rights (specifying the date on which the holders of Preferred Stock
shall be entitled thereto) or for determining rights to vote in respect of such Merger Event,
dissolution, liquidation or winding up; (B) in the case of any such Merger Event, dissolution,
liquidation or winding up, at least twenty (20) days’ prior written notice of the date when the
same shall take place (and specifying the date on which the holders of Preferred Stock shall be
entitled to exchange their Preferred Stock for securities or other property deliverable upon such
Merger Event, dissolution, liquidation or winding up); and (C) in the case of a public offering,
the Company shall give the Warrantholder at least twenty (20) days written notice prior to the
effective date thereof.
Each such written notice shall set forth, in reasonable detail, (i) the event requiring the
adjustment, (ii) the amount of the adjustment, (iii) the method by which such adjustment was
calculated, (iv) the Exercise Price, and (v) the number of shares subject to purchase hereunder
after giving effect to such adjustment, and shall be given by first class mail, postage prepaid,
addressed to the Warrantholder, at the address as shown on the books of the Company.
(g) Timely
Notice. Failure to timely provide such notice required by subsection (g) above
shall entitle Warrantholder to retain the benefit of the applicable notice period notwithstanding
anything to the contrary contained in any insufficient notice received by Warrantholder. The notice
period shall begin on the date Warrantholder actually receives a written notice containing all the
information specified above.
9. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.
The Company hereby represents and warrants to the Warrantholder that as of the Effective
Date:
(a) Reservation of Preferred Stock. The Preferred Stock issuable upon
exercise of the Warrantholder’s rights has been duly and validly reserved and, when issued in
accordance with the provisions of this Warrant Agreement, will be validly issued, fully paid and
non-assessable, and will be free of any taxes, liens, charges or encumbrances of any nature
whatsoever; provided, however, that the Preferred Stock issuable pursuant to this Warrant Agreement
may be subject to restrictions on transfer under state and/or Federal securities laws. The Company
has made available to the Warrantholder true, correct and complete copies of its Charter and
Bylaws, as amended. The issuance of certificates for shares of Preferred Stock upon exercise of the
Warrant Agreement shall be made without charge to the Warrantholder for any issuance tax in respect
thereof, or other cost incurred by the Company in connection with such exercise and the related
issuance of shares of Preferred Stock. The Company shall not be required to pay any tax which may
be payable in respect of any transfer involved and the issuance and delivery of any certificate in
a name other than that of the Warrantholder.
(b) Due Authority. The execution and delivery by the Company of this Warrant Agreement and
the performance of all obligations of the Company hereunder, including the issuance to
Warrantholder of the right to acquire the shares of Preferred Stock, have been duly authorized by
all necessary corporate action on the part of the Company, and the Leases and this Warrant
Agreement are not inconsistent with the Company’s Charter or Bylaws,
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do not contravene any law or governmental rule, regulation or order applicable to it, do not and
will not contravene any provision of, or constitute a default under, any indenture, mortgage,
contract or other instrument to which it is a party or by which it is bound, and the Leases and
this Warrant Agreement constitute legal, valid and binding agreements of the Company, enforceable
in accordance with their respective terms.
(c) Consents and Approvals. No consent or approval of, giving of notice to, registration
with, or taking of any other action in respect of any state, Federal or other governmental
authority or agency is required with respect to the execution, delivery and performance by the
Company of its obligations under this Warrant Agreement, except for the filing of notices pursuant
to Regulation D under the 1933 Act and any filing required by applicable state securities law,
which filings will be effective by the time required thereby.
(d)
Issued Securities. All issued and outstanding shares of Common Stock, Preferred
Stock or any other securities of the Company have been duly authorized and validly issued and are
fully paid and nonassessable. All outstanding shares of Common Stock, Preferred Stock and any other
securities were issued in full compliance
with all Federal and state securities laws. In addition:
(i) The authorized capital of the Company consists of (A) 44,600,000 shares of Common
Stock, of which 4,897,826 shares are issued and outstanding, and (B) 23,400,000 shares of
preferred stock, of which 23,018,292 shares are issued and outstanding and are convertible
into 23,018,292 shares of Common Stock .
(ii) The Company has reserved (A) 10,174,818 shares of Common Stock for issuance under
its 1999 Stock Option Plan, under which 4,053,759 options are outstanding. There are no
other options, warrants, conversion privileges or other rights presently outstanding to
purchase or otherwise acquire any authorized but unissued shares of the Company’s capital
stock or other securities of the Company.
(e) Insurance. The Company has in full force and effect insurance policies, with extended
coverage, insuring the Company and its property and business against such losses and risks, and in
such amounts, as are customary for corporations engaged in a similar business and similarly
situated and as otherwise may be required pursuant to the terms of any other contract or agreement.
(f) Other Commitments to Register Securities. Except as set forth in the Investors’
Rights Agreement dated November 19, 1999 among the Company and certain of its Securityholders (the
“Investors’ Rights Agreement”) and the Warrantholder in this Warrant Agreement, the Company is not,
pursuant to the terms of any other agreement currently in existence, under any obligation to
register under the 1933 Act any of its presently outstanding securities or any of its securities
which may hereafter be issued.
(g) Exempt Transaction. Subject to the accuracy of the Warrantholder’s representations in
Section 10 hereof, the issuance of the Preferred Stock upon exercise of this Warrant will
constitute a transaction exempt from (i) the registration requirements of Section 5 of the 1933
Act, in reliance upon Section 4(2) thereof, and (ii) the qualification requirements of the
applicable state securities laws.
(h) Compliance
with Rule 144. At the written request of the Warrantholder, who
proposes to sell Preferred Stock issuable upon the exercise of the Warrant in compliance with Rule 144 promulgated
by the Securities and Exchange Commission, the Company shall furnish to the Warrantholder, within
ten days after receipt of such request, a written statement confirming the Company’s compliance
with the filing requirements of the Securities and Exchange Commission as set forth in such Rule,
as such Rule may be amended from time to time.
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10.
REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.
This Warrant Agreement has been entered into by the Company in reliance upon the
following representations and covenants of the Warrantholder:
(a) Investment Purpose. The right to acquire Preferred Stock or the Preferred Stock issuable
upon exercise of the Warrantholder’s rights contained herein will be acquired for investment and
not with a view to the sale or distribution of any part thereof, and the Warrantholder has no
present intention of selling or engaging in any public distribution of the same except pursuant to
a registration or exemption.
(b) Private Issue. The Warrantholder understands (i) that the Preferred Stock issuable
upon exercise of this Warrant is not registered under the 1933 Act or qualified under applicable
state securities laws on the ground that the issuance contemplated by this Warrant Agreement will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section
10.
(c) Disposition of Warrantholder’s Rights. In no event will the Warrantholder make a
disposition of any of its rights to acquire Preferred Stock or Preferred Stock issuable upon
exercise of such rights unless and until (i) it shall have notified the Company of the proposed
disposition, and (ii) if requested by the Company, it shall have furnished the Company with an
opinion of counsel (which counsel may either be inside or outside counsel to the Warrantholder)
satisfactory to the Company and its counsel to the effect that (A) appropriate action necessary for
compliance with the 1933 Act has been taken, or (B) an exemption from the registration requirements
of the 1933 Act is available. Notwithstanding the foregoing, the restrictions imposed upon the
transferability of any of its rights to acquire Preferred Stock or Preferred Stock issuable on the
exercise of such rights do not apply to transfers from the beneficial owner of any of the
aforementioned securities to its nominee or from such nominee to its beneficial owner, and shall
terminate as to any particular share of Preferred Stock when (1) such security shall have been
effectively registered under the 1933 Act and sold by the holder thereof in accordance with such
registration or (2) such security shall have been sold without registration in compliance with Rule
144 under the 1933 Act, or (3) a letter shall have been issued to the Warrantholder at its request
by the staff of the Securities and Exchange Commission or a ruling shall have been issued to the
Warrantholder at its request by such Commission stating that no action shall be recommended by such
staff or taken by such Commission, as the case may be, if such security is transferred without
registration under the 1933 Act in accordance with the conditions set forth in such letter or
ruling and such letter or ruling specifies that no subsequent restrictions on transfer are
required. Whenever the restrictions imposed hereunder shall terminate, as hereinabove provided,
the Warrantholder or holder of a share of Preferred Stock then outstanding as to which such
restrictions have terminated shall be entitled to receive from the
Company, without expense to such
holder, one or more new certificates for the Warrant or for such shares of Preferred Stock not
bearing any restrictive legend.
(d) Financial Risk. The Warrantholder has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its investment, and has
the ability to bear the economic risks of its investment.
(e) Risk of No Registration. The Warrantholder understands that if the Company does not
register with the Securities and Exchange Commission pursuant to Section 12 of the 1934 Act (the
“1934 Act”), or file reports pursuant to Section 15(d), of the 1934 Act, or if a registration
statement covering the securities under the 1933 Act is not in effect when it desires to sell (i)
the rights to purchase Preferred Stock pursuant to this Warrant Agreement, or (ii) the Preferred
Stock issuable upon exercise of the right to purchase, it may be required to hold such securities
for an indefinite period. The Warrantholder also understands that any sale of its rights of the
Warrantholder to purchase Preferred Stock or Preferred Stock which might be made by it in reliance
upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of
that Rule.
(f) Accredited Investor. Warrantholder is an “accredited investor” within the
meaning of the Securities and Exchange Rule 501 of Regulation D, as presently in effect.
11. REGISTRATION RIGHTS.
The Company grants to the Warrantholder registration rights contained in Section 1 of the
Company’s Investors’ Rights Agreement dated as of November 19, 1999, as amended thereafter from
time to time (the “Investors’ Rights Agreement”) so that (i) the Preferred Stock issuable upon
exercise of this Warrant shall be “Registrable Securities” as defined thereunder and (ii)
Warrantholder shall be a “Holder” and an “Investor for all purposes of the Investors’ Rights
Agreement, including the obligations as a Holder thereunder, including without
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limitation, the market stand-off restrictions under Section 1.14 thereunder; provided,
however, that the Warrantholder
signs the Investor Rights Agreement and warrantholder
shall not be entitled to the right of first offer and other rights
contained in section 2 of the Investor Rights Agreement.
All transferees of Warrantholder shall agree in writing to be
bound by the same terms of the Investor Rights Agreement
12. TRANSFERS.
Subject to the terms and conditions contained in Section 10 hereof and Section 1.14
of the Investors’ Rights Agreement, this Warrant Agreement and all rights hereunder are
transferable in whole or in part by the Warrantholder and any successor transferee, provided,
however, in no event shall the number of transfers of the rights and interests in all of the
Warrants exceed three (3) transfers, including subsequent transfers. The transfer shall be
recorded on the books of the Company upon receipt by the Company of a notice of transfer in the
form attached hereto as Exhibit III (the “Transfer Notice”), at its principal offices and the
payment to the Company of all transfer taxes and other governmental charges imposed on such
transfer.
13. MISCELLANEOUS.
(a) Effective
Date. The provisions of this Warrant Agreement shall be construed and
shall be given effect in all respects as if it had been executed and delivered by the Company on
the date hereof. This Warrant Agreement shall be binding upon any successors or assigns of the
Company.
(b) Attorney’s Fees. In any litigation, arbitration or court proceeding between the
Company and the Warrantholder relating hereto, the prevailing party shall be entitled to attorneys’
fees and expenses and all costs of proceedings incurred in enforcing this Warrant Agreement.
(c) Governing Law. This Warrant Agreement shall be governed by and construed for all
purposes under and in accordance with the laws of the State of California.
(d) Counterparts. This Warrant Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.
(e) Notices. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery, facsimile transmission (provided that the
original is sent by personal delivery or mail as hereinafter set forth) or seven (7) days after
deposit in the United States mail, by registered or certified mail, addressed (i) to the
Warrantholder at 0000 Xxxxx Xxxxx Xxxx, Xxxxxxxx, Xxxxxxxx 00000, Attention: Venture Lease
Administration, cc: Legal Department, Attention: General Counsel, (and/or, if by Facsimile, (847)
518- 5465 and (000)000-0000) and (ii) to the Company at 000 Xxxxxxxxxx Xxx., Xxxxx 000, Xxxx Xxxx,
XX 00000, Attention: President (and/or if by Facsimile, (000) 000-0000) or at such other address as
any such party may subsequently designate by written notice to the other party.
(f) Remedies. In the event of any default hereunder, the non-defaulting party may proceed to
protect and enforce its rights either by suit in equity and/or by action at law, including but not
limited to an action for damages as a result of any such default, and/or an action for specific
performance for any default where Warrantholder will not have an adequate remedy at law and where
damages will not be readily ascertainable. The Company expressly agrees that it shall not oppose an
application by the Warrantholder or any other person entitled to the benefit of this Agreement
requiring specific performance of any or all provisions hereof or enjoining the Company from
continuing to commit any such breach of this Agreement.
(g) No Impairment of Rights. The Company will not, by amendment of its Charter or through any
other means, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in
the taking of all such actions as may be necessary or appropriate in order to protect the rights of
the Warrantholder against impairment.
(h) Survival. The representations, warranties, covenants and conditions of the respective
parties contained herein or made pursuant to this Warrant Agreement shall survive the execution
and delivery of this Warrant Agreement.
(i) Severability. In the event any one or more of the provisions of this Warrant
Agreement shall for
any reason be held invalid, illegal or unenforceable, the remaining provisions of this Warrant
Agreement shall be
unimpaired, and the invalid, illegal or unenforceable provision shall be replaced by a mutually
acceptable valid, legal and enforceable provision, which comes closest to the intention of the
parties underlying the invalid, illegal or unenforceable provision.
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(j) Amendments. Any provision of this Warrant Agreement may be amended by a written
instrument signed by the Company and by the Warrantholder.
(k) Additional Documents. The Company, upon execution of this Warrant Agreement, shall
provide the Warrantholder with certified resolutions with respect to the representations,
warranties and covenants set forth in subparagraphs (a) through (d), (f) and (g) of Section 9
above. The Company shall also supply such other documents as the Warrantholder may from time to
time reasonably request.
IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to be executed by
its officers thereunto duly authorized as of the Effective Date.
| COMPANY: | IRONPLANET. COM. INC. | |||||
| By: | /s/ Xxxxx Xxxxxx | |||||
| Title: | President | |||||
| WARRANTHOLDER: | COMDISCO, INC. | |||||
| By: | /s/ Xxxx X. Xxxxxx | |||||
| Title: | SENIOR VICE PRESIDENT | |||||
| MAY 09 2000 | ||||||
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EXHIBIT I
NOTICE OF EXERCISE
| To: | ||
| (1) | The undersigned Warrantholder hereby elects to purchase shares of the Series Preferred Stock of , pursuant to the terms of the Warrant Agreement dated the day of , (the“WarrantAgreement”) between ___________ and the Warrantholder, and tenders herewith payment of the purchase price for such shares in full, together with all applicable transfer taxes, if any. | |
| (2) | In exercising its rights to purchase the Series Preferred Stock of , the undersigned hereby confirms and acknowledges the investment representations and warranties made in Section 10 of the Warrant Agreement. | |
| (3) | Please issue a certificate or certificates representing said shares of Series Preferred Stock in the name of the undersigned or in such other name as is specified below. | |
| (Name) | ||||||
| (Address) | ||||||
| WARRANTHOLDER: | COMDISCO, INC. | |||||
| By: | ||||||
| Title: | ||||||
| Date: | ||||||
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EXHIBIT II
ACKNOWLEDGMENT OF EXERCISE
The
undersigned , hereby acknowledge receipt of the “Notice of
Exercise” from Comdisco, Inc., to purchase _____ shares of the
Series ____ Preferred Stock of
,
pursuant to the terms of the Warrant Agreement, and further
acknowledges that ___ shares remain subject to purchase under the terms of the Warrant Agreement.
COMPANY: |
||||||
| By: | ||||||
| Title: | ||||||
| Date: | ||||||
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EXHIBIT IIl
TRANSFER NOTICE
(To
transfer or assign the foregoing Warrant Agreement execute this form
and supply required information.
Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant Agreement and all rights evidenced thereby are hereby
transferred and assigned to
| (Please Print) |
||
whose address is |
||
Dated: |
||
Holder’s Signature: |
||
Holder’s Address: |
||
Signature Guaranteed: |
||
| NOTE: | The signature to this Transfer Notice must correspond with the name as it appears on the face of the Warrant Agreement, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant Agreement. |
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EXHIBIT IV
(INSERT CHARTER)
COMPARISON OF HEADERS
-HEADER 1-
-HEADER 2-
Header Discontinued
Header Discontinued
-HEADER 3-
Header Discontinued
Header Discontinued
COMPARISON OF FOOTERS
-FOOTER 1-
-FOOTER 2-
Lease. Warrant (9.99) — 1 — Comdisco Confidential Information
Lease. Warrant (9.99) — 1 — Comdisco Confidential Information
-FOOTER 3-
T
T
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