Warrant AgreementAlign Technology Inc and Comdisco Inc Apr 12 1999.docx

Warrant AgreementAlign Technology Inc and Comdisco Inc Apr 12 1999.docx

《Warrant AgreementAlign Technology Inc and Comdisco Inc Apr 12 1999.docx》由会员分享，可在线阅读，更多相关《Warrant AgreementAlign Technology Inc and Comdisco Inc Apr 12 1999.docx（15页珍藏版）》请在冰豆网上搜索。

WarrantAgreementAlignTechnologyIncandComdiscoIncApr121999

THESESECURITIESHAVENOTBEENREGISTEREDUNDERTHESECURITIESACTOF1933AS

AMENDED,ORANYSTATESECURITIESLAWS.THEYMAYNOTBESOLD,OFFEREDFORSALE,

PLEDGED,ORHYPOTHECATEDINTHEABSENCEOFANEFFECTIVEREGISTRATIONSTATEMENT

RELATEDTHERETOORANOPINIONOFCOUNSEL（WHICHMAYBECOMPANYCOUNSEL）

REASONABLYSATISFACTORYTOTHECOMPANYTHATSUCHREGISTRATIONISNOTREQUIRED

UNDERTHESECURITIESACTOF1933,ASAMENDED,ORANYAPPLICABLESTATESECURITIES

LAWS.

WARRANTAGREEMENT

ToPurchaseSharesoftheSeriesBPreferredStockofALIGNTECHNOLOGYINC.

DatedasofApril12,1999（the"EffectiveDate"）

WHEREAS,AlignTechnologyIncorporated,aDelawarecorporation（the

"Company"）hasenteredintoaLoanandSecurityAgreementdatedasofApril12,

1999,andrelatedPromissoryNote（s）（collectively,the"Loans"）withComdisco,

Inc.,aDelawarecorporation（the"Warrantholder'）;and

WHEREAS,theCompanydesirestogranttoWarrantholder,in

considerationforsuchLoans,therighttopurchasesharesofitsSeriesB

PreferredStock;

NOW,THEREFORE,inconsiderationoftheWarrantholderexecutingand

deliveringsuchLoansandinconsiderationofmutualcovenantsandagreements

containedherein,theCompanyandWarrantholderagreeasfollows:

1.GRANTOFTHERIGHTTOPURCHASEPREFERREDSTOCK.

TheCompanyherebygrantstotheWarrantholder,andtheWarrantholder

isentitled,uponthetermsandsubjecttotheconditionshereinaftersetforth,

tosubscribetoandpurchase,fromtheCompany,266,667fullypaidandnon-

assessablesharesoftheCompany'sSeriesBPreferredStock（"PreferredStock"）

atapurchasepriceof$3.00pershare（the"ExercisePrice"）.Thenumberand

purchasepriceofsuchsharesaresubjecttoadjustmentasprovidedinSection8

hereof.

2.TERMOFTHEWARRANTAGREEMENT.

Exceptasotherwiseprovidedforherein,thetermofthisWarrant

AgreementandtherighttopurchasePreferredStockasgrantedhereinshall

commenceontheEffectiveDateandshallbeexercisableforaperiodof（i）ten

（10）yearsor（ii）five（5）yearsfromtheeffectivedateoftheCompany's

initialpublicoffering,whicheverisshorter.

NotwithstandingthetermofthisWarrantAgreementfixedpursuantto

theaboveparagraph,therighttopurchasePreferredStockasgrantedherein

shallexpire,ifnotpreviouslyexercisedimmediatelyupontheclosingofamergerorconsolidationoftheCompanywithorintoanothercorporationorentitywhentheCompany'sstockholdersimmediatelybeforetheconsummationofsuchtransactiondonotholdatleast50%oftheoutstandingsecuritiesofthesurvivingentity,orthesale

ofallorsubstantiallyalloftheCompany'spropertiesandassetstoanyother

person（collectively,a"Merger"）;providedinwhichWarrantholderrealizesa

valueforitssharesequaltoorgreaterthan$9.00pershare.

TheCompanyshallnotifytheWarrantholderiftheMergerisproposed

inaccordancewiththetermsof8（f）hereof,andiftheCompanyfailstodeliver

suchwrittennotice,thennotwithstandinganythingtothecontraryinthis

WarrantAgreement,therightstopurchasetheCompany'sPreferredStockshall

notexpireuntiltheCompanyhasdeliveredwrittennoticeoftheMergerandthe

noticeperiodsetforthin8（f）hereofhasexpired.Suchnoticeshallalso

containsuchdetailsoftheproposedMergerasarereasonableinthe

circumstances.Ifsuchclosingdoesnottakeplace,theCompanyshallpromptly

notifytheWarrantholderthatsuchproposedtransactionhasbeenterminated,and

theWarrantholdermayrescindanyexerciseofitspurchaserightspromptlyafter

suchnoticeofterminationoftheproposedtransactioniftheexerciseof

WarrantshasoccurredaftertheCompanynotifiedtheWarrantholderthatthe

Mergerwasproposed.Intheeventofsuchrecission,theWarrantswillcontinue

tobeexercisableonthesametermsandconditionscontainedherein.

3.EXERCISEOFTHEPURCHASERIGHTS.

ThepurchaserightssetforthinthisWarrantAgreementare

exercisablebytheWarrantholder,inwholeorinpart,atanytime,orfromtime

totime,priortotheexpirationofthetermsetforthinSection2above,by

tenderingtotheCompanyatitsprincipalofficeanoticeofexerciseinthe

formattachedheretoasExhibitI（the"NoticeofExercise"）,dulycompletedand

executed.PromptlyuponreceiptoftheNoticeofExerciseandthepaymentof

thepurchasepriceinaccordancewiththetermssetforthbelow,andinnoevent

laterthantwenty-one（21）daysthereafter,theCompanyshallissuetothe

WarrantholderacertificateforthenumberofsharesofPreferredStock

purchasedandshallexecutetheacknowledgmentofexerciseintheformattached

heretoasExhibit11（the"AcknowledgmentofExercise"）indicatingthenumberof

shareswhichremainsubjecttofuturepurchases,ifany.

TheExercisePricemaybepaidattheWarrantholder'selectioneither

（i）bycashorcheck,or（ii）bysurrenderofWarrants（"NetIssuance"）as

determinedbelow.IftheWarrantholderelectstheNetIssuancemethod,the

CompanywillissuePreferredStockinaccordancewiththefollowingformula:

X=Y（A-B）

------

A

Where:

X=thenumberofsharesofPreferredStocktobeissuedtotheWarrantholder.

Y=thenumberofsharesofPreferredStockrequestedtobeexercisedunderthisWarrantAgreement.

A=thefairmarketvalueofone

（1）shareofPreferredStock.

B=theExercisePrice.

Forpurposesoftheabovecalculation,currentfairmarketvalueof

PreferredStockshallmeanwithrespecttoeachshareofPreferredStock:

（i）iftheexerciseisinconnectionwithaninitialpublicofferingoftheCompany'sCommonStock,andiftheCompany'sRegistrationStatementrelatingtosuchpublic

offeringhasbeendeclaredeffectivebytheSEC,thenthefairmarketvaluepershareshallbetheproductof（x）theinitial"PricetoPublic"specifiedinthefinalprospectuswithrespecttotheofferingand（y）thenumberofsharesofCommonStockintowhicheachshareofPreferredStock-isconvertibleatthetimeofsuchexercise;

（ii）ifthisWarrantisexercisedafter,andnotinconnectionwiththeCompany'sinitialpublicoffering,and:

（a）iftradedonasecuritiesexchange,thefairmarketvalueshallbedeemedtobetheproductof（x）theaverageoftheclosingpricesoverafive（5）dayperiodendingthreedaysbeforethedaythecurrentfairmarketvalueofthesecuritiesisbeingdeterminedand（y）thenumberofsharesofCommonStockintowhicheachshareofPreferredStockisconvertibleatthetimeofsuchexercise;or

（b）ifactivelytradedover-the-counter,thefairmarketvalueshallbedeemedtobetheproductof（x）theaverageoftheclosingbidandaskedpricesquotedontheNASDAQsystem（orsimilarsystem）overthefive（5）dayperiodendingthreedaysbeforethedaythecurrentfairmarketvalueofthesecuritiesisbeingdeterminedand

（y）thenumberofsharesofCommonStockintowhicheachshareofPreferredStockisconvertibleatthetimeofsuchexercise;

（iii）ifatanytimetheCommonStockisnotlistedonanysecuritiesexchangeorquotedintheNASDAQSystemortheover-the-countermarket,thecurrentfairmarketvalueofPreferredStockshallbetheproductof（x）thehighestpricepersharewhichtheCompanycouldobtainfromawillingbuyer（notacurrentemployeeordirector）forsharesofCommonStocksoldbytheCompany,fromauthorizedbutunissuedshares,asdeterminedingoodfaithbyitsBoardofDirectorsand（y）thenumberofsharesofCommonStockintowhicheachshareofPreferredStockisconvertibleatthetimeofsuchexercise,unlesstheCompanyshallbecomesubjecttoamerger,acquisitionorotherconsolidationpursuanttowhichtheCompanyisnotthesurvivingparty,inwhichcasethefairmarketvalueofPreferredStockshallbedeemedtobethevaluereceivedbytheholdersoftheCompany'sPreferredStock

onacommonequivalentbasispursuanttosuchmergeroracquisition.

UponpartialexercisebyeithercashorNetIssuance,theCompany

shallpromptlyissueanamendedWarrantAgreementrepresentingtheremaining

numberofsharespurchasablehereunder.AllothertermsandconditionsofsuchamendedWarrantAgreementshallbeidenticaltothosecontainedherein,including,butnotlimitedtotheEffectiveDatehereof.

4.RESERVATIONOFSHARES.

（a）AuthorizationandReservationofShares.Duringthetermofthis

WarrantAgreement,theCompanywillatalltimeshaveauthorizedandreserveda

sufficientnumberofsharesofitsPreferredStocktoprovidefortheexercise

oftherightstopurchasePreferredStockasprovidedforherein.

（b）RegistrationorListing.IfanysharesofPreferredStockrequiredto

bereservedhereunderrequireregistrationwithorapprovalofanygovernmental

authorityunderanyFederalorStatelaw（otherthananyregistrationunderthe

SecuritiesActof1933,asamended（"1933Act"）,asthenineffect,orany

similarFederalstatutethenenforced,oranystatesecuritieslaw,requiredby

reasonofanytransferinvolvedinsuchconversion）,orlistingonanydomestic

securitiesexchange,beforesuchsharesmaybeissueduponconversion,the

Companywill,atitsexpenseandasexpeditiouslyaspossible,useitsbest

effortstocausesuchsharestobedulyregistered,listedorapprovedfor

listingonsuchdomesticsecuritiesexchange,asthecasemaybe.

5.NOFRACTIONALSHARESORSCRIP.

Nofractionalsharesorscriprepresentingfractionalsharesshallbe

issuedupontheexerciseoftheWarrant,butinlieuofsuchfractionalshares

theCompanyshallmakeacashpaymentthereforuponthebasisoftheExercise

Pricethenineffect.

6.NORIGHTSASSHAREHOLDER.

ThisWarrant