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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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SCHEDULE 13D/A
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Under the Securities Exchange Act
of 1934
(Amendment No. 6)*
(Name of Issuer)
Common
Stock, Par Value $0.01 Per Share
(Title of Class of
Securities)
(CUSIP Number)
Howard
S. Zeprun
Chief
Administrative Officer and General Counsel
Trident
Capital, Inc.
505
Hamilton Avenue
Palo
Alto, CA 94301
Telephone:
(650) 289-4400
(Name, Address and
Telephone Number of Person
Authorized to Receive Notices and Communications)
(Date of Event Which
Requires Filing of this Statement)
If the filing person has previously filed a statement
on Schedule 13G to report the acquisition that is the subject of this Schedule
13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box.
o
Note
: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Rule 13d-7 for other
parties to whom copies are to be sent.
*
The remainder of this cover page shall be
filled out for a reporting person's initial filing on this form with respect to
the subject class of securities, and for any subsequent amendment containing
information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this
cover page shall not be deemed to be "filed" for the purpose of
Section 18 of the Securities Exchange Act of 1934 ("Act") or
otherwise subject to the liabilities of that section of the Act but shall be
subject to all other provisions of the Act (however, see the Notes).
CUSIP No. 983882 30 9
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1.
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Name of Reporting Persons
Trident Capital Management-V, L.L.C.
I.R.S.
Identification Nos. of Above Persons (Entities Only)
77-0544011
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2.
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3.
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SEC Use Only
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4.
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Source of Funds (See
Instructions)
WC
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5.
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6.
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Citizenship or Place of Organization
Delaware, United States of America
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7.
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Sole Voting Power
8,162,784(1)
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8.
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Shared Voting Power
0
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9.
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Sole Dispositive Power
8,162,784(1)
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10.
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Shared Dispositive Power
0
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11.
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Aggregate Amount
Beneficially Owned by Each Reporting Person
8,162,784(1)
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12.
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13.
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Percent of Class
Represented by Amount in Row 11
48.2%
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14.
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Type of Reporting Person
(See Instructions)
OO
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(1) Comprised of (a) 2,043,793
shares of Series B Preferred Stock, (b) 1,269,036 shares of Series C
Preferred Stock, (c) 1,566,580 shares of Series D Preferred Stock, (d) 1,013,514
shares of Series F Preferred Stock, (e) warrants exercisable for an
aggregate of 1,149,028 shares of Common Stock, (f) 833,333 shares of Series G
Preferred Stock and warrants exercisable for 250,000 shares of Common Stock, in
each case following mandatory conversion of an aggregate principal amount of
$2,500,000 of the Notes in accordance with, and subject to, their terms, (g) options
exercisable for an aggregate of 25,000 shares of Common Stock, and (h) 12,500
shares of restricted Common Stock. Each share of Series B Preferred Stock,
Series C Preferred Stock, Series D Preferred Stock, Series F
Preferred Stock and Series G Preferred Stock (together, the Preferred
Stock) is convertible into one share of Common Stock. The options and shares
of restricted Common Stock were granted to Christopher P. Marshall, a former
member of Trident Capital Management-V, L.L.C. (TCMV ), in his former
capacity as a director nominated to the Board of Directors of the Issuer by
TCMV. Mr. Marshall holds such shares for
the benefit of TCMV pursuant to the terms of TCMVs operating agreement. Mr.
Marshall disclaims beneficial ownership of these options and shares of
restricted Common Stock, except to the extent of his retained economic
interests in each of the foregoing entities. The shares of Preferred Stock are
held by Trident Capital Fund-V, L.P., Trident Capital Fund-V Affiliates Fund,
L.P., Trident Capital Fund-V Affiliates Fund (Q), L.P., Trident Capital Fund-V
Principals Fund, L.P. (collectively, the Delaware Trident Entities), and
Trident Capital Parallel Fund-V, C.V. (TCPV). TCMV is the sole general
partner of each of the Delaware Trident Entities and the sole investment
partner of TCPV.
2
CUSIP No. 983882 30 9
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1.
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Name of Reporting Persons
Trident Capital Fund-V, L.P.
I.R.S.
Identification Nos. of Above Persons (Entities Only)
77-0544013
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2.
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3.
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SEC Use Only
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4.
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Source of Funds (See
Instructions)
WC
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5.
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6.
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Citizenship or Place of Organization
Delaware, United States of America
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7.
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Sole Voting Power
7,278,924(2)
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8.
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Shared Voting Power
0
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9.
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Sole Dispositive Power
7,278,924(2)
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10.
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Shared Dispositive Power
0
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11.
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Aggregate Amount
Beneficially Owned by Each Reporting Person
7,278,924(2)
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12.
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13.
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Percent of Class
Represented by Amount in Row 11
45.3%
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14.
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Type of Reporting Person (See
Instructions)
PN
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(2) Comprised
of (a) 1,830,903 shares of Series B Preferred Stock, (b) 1,136,849
shares of Series C Preferred Stock, (c) 1,403,400 shares of Series D
Preferred Stock, (d) 907,942 shares of Series F Preferred Stock, (e) warrants
exercisable for an aggregate of 1,029,341 shares of Common Stock, and (f) 746,530
shares of Series G Preferred Stock and warrants exercisable for 223,959
shares of Common Stock, in each case following mandatory conversion of the
aggregate principal amount of $2,239,591.26 of the Notes in accordance with,
and subject to, their terms. Each share of Preferred Stock is convertible into
one share of Common Stock.
3
CUSIP No. 983882 30 9
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1.
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Name of Reporting Persons
Trident Capital Fund-V Affiliates Fund, L.P.
I.R.S.
Identification Nos. of Above Persons (Entities Only)
77-0544015
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2.
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3.
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SEC Use Only
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4.
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Source of Funds (See
Instructions)
WC
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5.
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6.
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Citizenship or Place of Organization
Delaware, United States of America
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7.
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Sole Voting Power
42,305(3)
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8.
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Shared Voting Power
0
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9.
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Sole Dispositive Power
42,305(3)
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10.
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Shared Dispositive Power
0
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11.
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Aggregate Amount
Beneficially Owned by Each Reporting Person
42,305(3)
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12.
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13.
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Percent of Class
Represented by Amount in Row 11
Less than 1%
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14.
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Type of Reporting Person
(See Instructions)
PN
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(3) Comprised
of (a) 10,641 shares of Series B Preferred Stock, (b) 6,607
shares of Series C Preferred Stock, (c) 8,156 shares of Series D
Preferred Stock, (d) 5,277 shares of Series F Preferred Stock, (e) warrants
exercisable for an aggregate of 5,983 shares of Common Stock, and (f) 4,339
shares of Series G Preferred Stock and warrants exercisable for 1,302
shares of Common Stock, in each case following mandatory conversion of an
aggregate principal amount of $13,016.43 of the Notes in accordance with, and
subject to, their terms. Each share of Preferred Stock is convertible into one
share of Common Stock.
4
CUSIP No. 983882 30 9
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1.
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Name of Reporting Persons
Trident Capital Fund-V Affiliates Fund (Q), L.P.
I.R.S.
Identification Nos. of Above Persons (Entities Only)
77-0544014
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2.
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3.
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SEC Use Only
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4.
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Source of Funds (See
Instructions)
WC
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5.
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6.
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Citizenship or Place of Organization
Delaware, United States of America
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7.
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Sole Voting Power
40,368(4)
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8.
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Shared Voting Power
0
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9.
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Sole Dispositive Power
40,368(4)
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10.
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Shared Dispositive Power
0
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11.
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Aggregate Amount
Beneficially Owned by Each Reporting Person
40,368(4)
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12.
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13.
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Percent of Class
Represented by Amount in Row 11
Less than 1%
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14.
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Type of Reporting Person
(See Instructions)
PN
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(4) Comprised of (a) 10,153 shares of Series B Preferred
Stock, (b) 6,305 shares of Series C Preferred Stock, (c) 7,783
shares of Series D Preferred Stock, (d) 5,036 shares of Series F
Preferred Stock, (e) warrants exercisable for an aggregate of 5,709 shares
of Common Stock, and (f) 4,140 shares of Series G Preferred Stock and
warrants exercisable for 1,242 shares of Common Stock, in each case following
mandatory conversion of an aggregate principal amount of $12,420.91 of the
Notes in accordance with, and subject to, their terms. Each share of Preferred
Stock is convertible into one share of Common Stock.
5
CUSIP No. 983882 30 9
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1.
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Name of Reporting Persons
Trident Capital Fund-V Principals Fund, L.P.
I.R.S.
Identification Nos. of Above Persons (Entities Only)
77-0544016
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2.
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3.
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SEC Use Only
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4.
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Source of Funds (See
Instructions)
WC
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5.
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6.
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Citizenship or Place of Organization
Delaware, United States of America
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7.
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Sole Voting Power
210,680(5)
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8.
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Shared Voting Power
0
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9.
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Sole Dispositive Power
210,680(5)
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10.
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Shared Dispositive Power
0
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11.
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Aggregate Amount Beneficially
Owned by Each Reporting Person
210,680(5)
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12.
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13.
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Percent of Class
Represented by Amount in Row 11
2.3%
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14.
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Type of Reporting Person
(See Instructions)
PN
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(5) Comprised
of (a) 52,994 shares of Series B Preferred Stock, (b) 32,905
shares of Series C Preferred Stock, (c) 40,620 shares of Series D
Preferred Stock, (d) 26,279 shares of Series F Preferred Stock, (e) warrants
exercisable for an aggregate of 29,793 shares of Common Stock, and (f) 21,607
shares of Series G Preferred Stock and warrants exercisable for 6,482
shares of Common Stock, in each case following mandatory conversion of an
aggregate principal amount of $64,822.02 of the Notes in accordance with, and
subject to, their terms. Each share of Preferred Stock is convertible into one
share of Common Stock.
6
CUSIP No. 983882 30 9
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1.
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Name of Reporting Persons
Trident Capital Parallel Fund-V, C.V.
I.R.S.
Identification Nos. of Above Persons (Entities Only)
77-0566626
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2.
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3.
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SEC Use Only
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4.
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Source of Funds (See
Instructions)
WC
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5.
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6.
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Citizenship or Place of Organization
Netherlands
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7.
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Sole Voting Power
553,007(6)
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8.
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Shared Voting Power
0
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9.
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Sole Dispositive Power
553,007(6)
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10.
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Shared Dispositive Power
0
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11.
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Aggregate Amount
Beneficially Owned by Each Reporting Person
553,007(6)
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12.
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13.
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Percent of Class
Represented by Amount in Row 11
5.9%
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14.
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Type of Reporting Person
(See Instructions)
PN
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(6) Comprised
of (a) 139,102 shares of Series B Preferred Stock, (b) 86,370
shares of Series C Preferred Stock, (c) 106,621 shares of Series D
Preferred Stock, (d) 68,980 shares of Series F Preferred Stock, (e) warrants
exercisable for an aggregate of 78,202 shares of Common Stock, and (f) 56,717
shares of Series G Preferred Stock and warrants exercisable for 17,015 shares
of Common Stock, in each case following mandatory conversion of an aggregate
principal amount of $170,149.38 of the Notes in accordance with, and subject
to, their terms. Each share of Preferred Stock is convertible into one share of
Common Stock.
7
Item 1.
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Security and Issuer.
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This
Amendment No. 6 amends and supplements that Statement on Schedule 13D
(the Statement) filed by the parties on December 18, 2003, as amended
and supplemented by Amendment No. 1 filed by the parties on September 21,
2005, Amendment No. 2 filed by the parties on March 23, 2007,
Amendment No. 3 filed by the parties on June 25, 2007, Amendment No. 4
filed by the parties on February 17, 2009, and Amendment No. 5 filed
by the parties on April 15, 2009, respectively, with respect to the common
stock, par value $0.01 per share (Common Stock) of XATA Corporation, a
Minnesota corporation (the Issuer). The principal executive office of the
Issuer is located at 965 Prairie Center Drive, Eden Prairie, Minnesota 55344.
The Common Stock is quoted on the NASDAQ Capital Market under the symbol
XATA.
Item 2.
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Identity and Background.
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(a)
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Name:
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Trident
Capital Management-V, L.L.C. (TCMV)
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Trident
Capital Fund-V, L.P. (TCV)
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Trident
Capital Fund-V Affiliates Fund, L.P. (TCVA)
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Trident
Capital Fund-V Affiliates Fund (Q), L.P. (TCVAQ)
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Trident
Capital Fund-V Principals Fund, L.P. (TCVP)
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Trident
Capital Parallel Fund-V, C.V. (TCPV, and together with TCV, TCVA, TCVAQ and
TCVP, the Trident Entities)
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(b)
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Residence or business
address:
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Trident
Entities: 505 Hamilton Avenue,
Suite 200, Palo Alto, CA 94301
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(c)
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TCMV serves as the sole
general partner of TCV, TCVA, TCVAQ and TCVP and as the sole investment
general partner of TCPV. TCV, TCVA, TCVAQ and TCVP are each Delaware limited
partnerships whose principal business is investing in various companies.
TCPV, whose principal business is also investing in various companies, was
organized under the laws of the Netherlands.
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(d)
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During the last five years,
neither the Trident Entities nor, to the best knowledge of the Trident
Entities, any managing director of TCMV, has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors).
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(e)
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During the last five
years, neither the Trident Entities nor, to the best knowledge of the Trident
Entities, any managing director of TCMV, has been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction as
a result of which is or was subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any violation with
respect to such laws.
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(f)
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Citizenship.
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TCMV:
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Delaware
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TCV:
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Delaware
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TCVA:
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Delaware
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TCVAQ:
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Delaware
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TCVP:
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Delaware
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TCPV:
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Netherlands
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Item 3.
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Source and Amount of Funds or Other
Consideration.
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Pursuant to the terms of a
Note Purchase Agreement, dated December 4, 2009, by and among the Issuer,
TCV VII, L.P., TCV VII(A), L.P., TCV Member Fund, L.P. (together, the TCV
Funds), the Trident Entities, and G.W. 2001 Fund L.P. (the Note Purchase
Agreement), the Trident Entities purchased from the Issuer an aggregate
principal amount of Senior
8
Mandatorily Convertible
Promissory Notes equal to $2,500,000 (the Notes). The Notes are mandatorily convertible, in
accordance with, and subject to, their terms, into (i) 833,333 shares (the
Shares) of Series G Preferred Stock of the Issuer (the Series G
Preferred Stock), and (ii) warrants to purchase 250,000 shares of Common
Stock at an exercise price of $3.00 per share (the Warrants and, together
with the Shares, the Securities), as further described in Item 6 below. Following the issuance of the Shares upon
conversion of the Notes, each Share will be immediately convertible into one
share of Common Stock.
The
Trident Entities funded these purchases from working capital. None of the funds
used for the purchase consisted of funds or other consideration borrowed.
Item 4.
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Purpose of Transaction.
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The
Trident Entities acquired the Issuers securities for investment purposes.
Subject
to applicable legal requirements, the Trident Entities may purchase additional
securities of the Issuer from time to time in open market or in private
transactions, depending on their evaluation of Issuers business, prospects and
financial condition, the market for the Issuers securities, other developments
concerning Issuer, the reaction of Issuer to the Trident Entities ownership of
the Issuers securities, other opportunities available to the Trident Entities,
and general economic, money market and stock market conditions. In addition,
depending upon the factors referred to above, the Trident Entities may dispose
of all or a portion of their securities of the Issuer at any time. Each of the
Trident Entities reserves the right to increase or decrease its or his holdings
on such terms and at such times as each may decide.
Other
than as described in this Item 4, the Trident Entities do not have any
plan or proposal relating to or that would result in: (a) the acquisition
by any person of additional securities of the Issuer or the disposition of
securities of the Issuer; (b) an extraordinary corporate transaction, such
as a merger, reorganization or liquidation, involving the Issuer or any of its
subsidiaries; (c) a sale or transfer of a material amount of assets of the
Issuer or any of its subsidiaries; (d) any change in the Board of Directors
or management of the Issuer, including any plans or proposals to change the
number or terms of directors or to fill any existing vacancies on the Board of
Directors of the Issuer; (e) any material change in the present
capitalization or dividend policy of the Issuer; (f) any other material
change in the Issuers business or corporate structure; (g) changes in the
Issuers charter, by-laws or instruments corresponding thereto or other actions
which may impede the acquisition of control of the Issuer by any person; (h) a
class of securities of the Issuer being delisted from a national securities
exchange or ceasing to be authorized to be quoted in an inter-dealer quotation
system of a registered national securities association; (i) a class of
equity securities of the Issuer becoming eligible for termination of
registration pursuant to Section 12(g)(4) of the Exchange Act; or (j) any
action similar to those enumerated above.
Item 5.
|
Interest in Securities of the Issuer.
|
The
following information with respect to the ownership of the Common Stock of the
Issuer by the persons filing this Amendment No. 6 to Statement on
Schedule 13D is provided as of December 4, 2009. Percentages are
based on (i) 8,787,994 shares of Common Stock of the Issuer outstanding as
of December 4, 2009 as represented by the Issuer in the Note Purchase
Agreement, plus (ii) shares of Common Stock deemed to be outstanding
pursuant to Rule 13d-3(d)(1)(i) with respect to such Trident Entity:
Reporting Persons
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|
Shares Held
Directly
|
|
Sole Voting
Power
|
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Shared
Voting
Power
|
|
Sole
Dispositive
Power
|
|
Shared
Dispositive
Power
|
|
Beneficial
Ownership (7)
|
|
Percentage
of Class
|
|
TCMV (1)
|
|
0
|
|
8,162,784
|
|
0
|
|
8,162,784
|
|
0
|
|
8,162,784
|
|
48.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCV (2)
|
|
7,278,924
|
|
7,278,924
|
|
0
|
|
7,278,924
|
|
0
|
|
7,278,924
|
|
45.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCVA (3)
|
|
42,305
|
|
42,305
|
|
0
|
|
42,305
|
|
0
|
|
42,305
|
|
less than 1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCVAQ (4)
|
|
40,368
|
|
40,368
|
|
0
|
|
40,368
|
|
0
|
|
40,368
|
|
less than 1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCVP (5)
|
|
210,680
|
|
210,680
|
|
0
|
|
210,680
|
|
0
|
|
210,680
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCPV (6)
|
|
553,007
|
|
553,007
|
|
0
|
|
553,007
|
|
0
|
|
553,007
|
|
5.9%
|
|
9
(1)
|
Consists
of the shares beneficially owned by TCV, TCVA, TCVAQ, TCVP and TCPV. See
notes (2) through (7) to this table. TCMV is the sole general
partner of each of TCV, TCVA, TCVAQ, and TCVP, and the sole investment
partner of TCPV. Also consists of options exercisable for an aggregate of
25,000 shares of Common Stock and 12,500 shares of restricted Common Stock, which
were granted to Christopher P. Marshall, a former member of TCMV, in his
former capacity as a director nominated to the Board of Directors of the
Issuer by TCMV. Mr. Marshall holds
such shares for the benefit of TCMV pursuant to the terms of TCMVs operating
agreement. Mr. Marshall disclaims beneficial ownership of these options and
shares of restricted Common Stock, except to the extent of his retained
economic interests in the Trident Entities.
|
|
|
(2)
|
Comprised
of (a) 1,830,903 shares of Series B Preferred Stock,
(b) 1,136,849 shares of Series C Preferred Stock,
(c) 1,403,400 shares of Series D Preferred Stock, (d) 907,942
shares of Series F Preferred Stock, (e) warrants exercisable for an
aggregate of 1,029,341 shares of Common Stock, and (f) 746,530 shares of
Series G Preferred Stock and warrants exercisable for 223,959 shares of
Common Stock, in each case following mandatory conversion of an aggregate
principal amount of $2,239,591.26 of the Notes in accordance with, and
subject to, their terms.
|
|
|
(3)
|
Comprised
of (a) 10,641 shares of Series B Preferred Stock, (b) 6,607
shares of Series C Preferred Stock, (c) 8,156 shares of
Series D Preferred Stock, (d) 5,277 shares of Series F
Preferred Stock, (e) warrants exercisable for an aggregate of 5,983
shares of Common Stock, and (f) 4,339 shares of Series G Preferred
Stock and warrants exercisable for 1,302 shares of Common Stock, in each case
following mandatory conversion of an aggregate principal amount of $13,016.43
of the Notes in accordance with, and subject to, their terms.
|
|
|
(4)
|
Comprised
of (a) 10,153 shares of Series B Preferred Stock, (b) 6,305
shares of Series C Preferred Stock, (c) 7,783 shares of
Series D Preferred Stock, (d) 5,036 shares of Series F
Preferred Stock, (e) warrants exercisable for an aggregate of 5,709
shares of Common Stock, and (f) 4,140 shares of Series G Preferred
Stock and warrants exercisable for 1,242 shares of Common Stock, in each case
following mandatory conversion of an aggregate principal amount of $12,420.91
of the Notes in accordance with, and subject to, their terms.
|
|
|
(5)
|
Comprised
of (a) 52,994 shares of Series B Preferred Stock, (b) 32,905
shares of Series C Preferred Stock, (c) 40,620 shares of
Series D Preferred Stock, (d) 26,279 shares of Series F
Preferred Stock, (e) warrants exercisable for an aggregate of 29,793
shares of Common Stock, and (f) 21,607 shares of Series G Preferred
Stock and warrants exercisable for 6,482 shares of Common Stock, in each case
following mandatory conversion of an aggregate principal amount of $64,822.02
of the Notes in accordance with, and subject to, their terms.
|
|
|
(6)
|
Comprised
of (a) 139,102 shares of Series B Preferred Stock, (b) 86,370
shares of Series C Preferred Stock, (c) 106,621 shares of
Series D Preferred Stock, (d) 68,980 shares of Series F
Preferred Stock, (e) warrants exercisable for an aggregate of 78,202
shares of Common Stock, and (f) 56,717 shares of Series G Preferred
Stock and warrants exercisable for 17,015 shares of Common Stock, in each case
following mandatory conversion of an aggregate principal amount of
$170,149.38 of the Notes in accordance with, and subject to, their terms.
|
|
|
(7)
|
Each
share of Preferred Stock is convertible into one share of Common Stock as of
December 4, 2009.
|
(c). Except as set forth herein,
none of the Tridents Entities have effected any transaction in the Issuer stock
during the past 60 days.
(d). Except as set forth
herein, no other person is known to have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, the
Notes, the Securities or the underlying Common Stock.
(e). Not applicable.
Item 6.
|
Contracts, Arrangements, Understandings or
Relationships with Respect to Securities of the Issuer.
|
Summary
On December 6, 2003, the Issuer entered
into a Common Stock Warrant and Series B Preferred Stock Purchase
Agreement (the 2003 Stock Purchase Agreement) with the Trident Entities. On September 7,
2005, the Issuer entered into a Common Stock Warrant and Series C
Preferred Stock Purchase Agreement (the 2005 Stock Purchase Agreement) with
the Trident Entities. On June 18, 2007, the Issuer entered into a Common
Stock Warrant and Series D Preferred Stock Purchase Agreement with the
Trident Entities (the 2007 Stock Purchase Agreement). On February 12,
2009, the Issuer entered into a
10
Common
Stock Warrant and Series E Preferred Stock Purchase Agreement with the
Trident Entities (the 2009 Stock Purchase Agreement, and together with the
2003 Stock Purchase Agreement, the 2005 Stock Purchase Agreement and the 2007
Stock Purchase Agreement, the Stock Purchase Agreements). On April 15, 2009, pursuant to the terms
of the Exchange Agreement, each share of Series E Preferred Stock automatically
converted into one share of Series F Preferred Stock. On December 4, 2009, the Issuer entered
into the Note Purchase Agreement with the Trident Entities.
2003
Stock Purchase Agreement
Under
the 2003 Stock Purchase Agreement, the Trident Entities purchased an aggregate
of 1,612,903 shares of Series B Preferred Stock (the Series B
Preferred Stock) for $4,096,774, or $2.54 per share. The price per share of
the Series B Preferred Stock and the conversion price at which the Series B
Preferred Stock converts into Common Stock were equal to the market value of
the Common Stock (as defined in the rules of the NASDAQ Stock Market) on
the date of execution of the 2003 Stock Purchase Agreement. Pursuant to the
2003 Stock Purchase Agreement, the Issuer issued to the Trident Entities 5-year
warrants, which have now expired, to purchase an aggregate of 451,226 shares of
the Issuers Common Stock at an exercise price of $3.17 per share for an
aggregate purchase price of $56,403. These warrants permit cashless exercise.
In
connection with the 2003 Stock Purchase Agreement, the Trident Entities and the
Issuer entered into an indemnification agreement pursuant to which the Issuer
agreed to indemnify Trident Entities and certain related persons against
liabilities arising out of the Trident Entities or such related persons
status as a controlling person, fiduciary or other agent or affiliate of the
Issuer, including liabilities arising under the securities laws in connection
with the sale of securities.
2005
Stock Purchase Agreement
Under
the 2005 Stock Purchase Agreement, the Trident Entities purchased an aggregate
of 1,269,036 shares of Series C Preferred Stock (the Series C
Preferred Stock) for $5,000,002, or $3.94 per share. The price per share of
the Series C Preferred Stock and the conversion price at which the Series C
Preferred Stock converts into Common Stock were equal to the market value of
the Common Stock (as defined in the rules of the NASDAQ Stock Market) on
the date of execution of the 2005 Stock Purchase Agreement. Pursuant to the
2005 Stock Purchase Agreement, the Issuer issued to the Trident Entities 5-year
warrants, which exercise period was subsequently extended an additional two
years, to purchase an aggregate of 375,000 shares of the Issuers Common Stock
at an exercise price of $3.94 per share for an aggregate purchase price of
$46,875. These warrants permit cashless exercise.
In
addition, pursuant to the 2003 Stock Purchase Agreement and 2005 Stock Purchase
Agreement, the Issuer filed Registration Statements on Form S-3 to
register the resale, from time to time, of the Common Stock to be issued
pursuant to conversion of the Series B Preferred Stock and Series C
Preferred Stock and exercise of the warrants issued pursuant to the 2003 Stock
Purchase Agreement and 2005 Stock Purchase Agreement, and a reasonable estimate
of any Common Stock to be issued as dividends on the Series B Preferred
Stock.
2007
Stock Purchase Agreement
Under
the 2007 Stock Purchase Agreement, the Trident Entities purchased an aggregate
of 1,566,580 shares of Series D Preferred Stock (the Series D
Preferred Stock) for $6,000,001, or $3.83 per share. The price per share of
the Series D Preferred Stock and the conversion price at which the Series D
Preferred Stock converts into Common Stock were equal to the market value of
the Common Stock (as defined in the rules of the NASDAQ Stock Market) on
the date of execution of the 2007 Stock Purchase Agreement. Pursuant to the 2007 Stock Purchase
Agreement, the Issuer issued to the Trident Entities 5-year warrants, which
exercise period was subsequently extended an additional two years, to purchase
an aggregate of 469,974 shares of the Issuers Common Stock at an exercise
price of $3.83 per share for an aggregate purchase price of $58,747. These
warrants permit cashless exercise.
Pursuant to the 2007 Stock Purchase Agreement, the Issuer has filed a
Registration Statement on Form S-3 to register the resale, from time to
time, of the Common Stock to be issued pursuant to conversion of the Series D
Preferred Stock and exercise of the warrants issued pursuant to the 2007 Stock
Purchase Agreement.
11
2009
Stock Purchase Agreement and the Exchange Agreement
Under
the 2009 Stock Purchase Agreement, the Trident Entities purchased an aggregate
of 1,013,514 shares of Series E Preferred Stock (the Series E
Preferred Stock) for $2,250,001, or $2.22 per share. The price per share of
the Series E Preferred Stock and the conversion price at which the Series E
Preferred Stock converts into Common Stock were equal to the market value of
the Common Stock (as defined in the rules of the NASDAQ Stock Market) on
the date of execution of the 2009 Stock Purchase Agreement. Pursuant to the 2009
Stock Purchase Agreement, the Issuer issued to the Trident Entities 7-year
warrants to purchase an aggregate of 304,054 shares of the Issuers Common
Stock at an exercise price of $2.22 per share for an aggregate purchase price
of $38,007. These warrants permit cashless exercise. As described above, on April 15, 2009,
pursuant to the terms of the Exchange Agreement, each share of Series E
Preferred Stock automatically converted into one share of Series F
Preferred Stock (the Series F Preferred Stock, and together with the Series B
Preferred Stock, Series C Preferred Stock and Series D Preferred
Stock, the Preferred Stock). The
conversion price at which the Series F Preferred Stock converts into
Common Stock is initially equal to $2.22 per share, subject to certain
capitalization and other customary adjustments.
Pursuant to the 2009 Stock Purchase Agreement, the Issuer has filed a
Registration Statement on Form S-3 to register the resale, from time to
time, of the Common Stock to be issued pursuant to conversion of the Series F
Preferred Stock and exercise of the warrants issued pursuant to the 2009 Stock
Purchase Agreement.
Pursuant
to the terms of the Exchange Agreement, on April 14, 2009, the Issuer held
a special meeting of its shareholders, at which meeting its shareholders
approved an amendment to its articles of amendment to, among other things,
authorize the Series F Preferred Stock, which has a liquidation preference
senior to the Issuers existing series of preferred stock. On April 15,
2009, pursuant to the terms of the Exchange Agreement, the Issuer issued to the
purchasers of Series E Preferred Stock one share of newly issued Series F
Preferred Stock in exchange for each share of Series E Preferred Stock
then held by such purchasers.
Rights
of Preferred Stock
The
Series B Preferred Stock pays an annual cumulative dividend of 4% of the
original issue price (payable, at the option of the holders, in additional
shares of Preferred Stock rather than cash). The Preferred Stock has a
non-participating preferred liquidation right equal to the original issue price
plus accrued unpaid dividends, with the liquidation rights of (i) the Series G
Preferred Stock being senior to those of the Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock and Series F Preferred
Stock, (ii) the Series F Preferred Stock being senior to those of the
Series B Preferred Stock, Series C Preferred Stock and Series D
Preferred Stock, (iii) the Series B Preferred Stock being senior to
those of the Series C Preferred Stock and the Series D Preferred
Stock and (iv) the Series C Preferred Stock being senior to those of
the Series D Preferred Stock.
Subject to the senior accumulating dividend rights of the Series B
Preferred Stock, the Series B Preferred Stock, Series C Preferred
Stock, Series D Preferred Stock, Series F Preferred Stock and Series G
Preferred Stock have pari passu dividend rights.
The
Preferred Stock is redeemable by the Issuer, after five (5) years from the
original issuance of the respective shares of Preferred Stock, at the original
issue price plus accrued unpaid dividends, if the market value of the Common
Stock is at least three (3) times the then effective conversion price for
a specified period. The Issuer is required to redeem the Preferred Stock in
certain events described therein, including default on debt, significant
adverse judgments in litigation, bankruptcy, or a Change in Control (as defined
in Section 4(D) of the Certificate of Designation pertaining to the Series B
Preferred Stock). So long at least 325,000 shares of the Issuers Series B
Preferred Stock remain outstanding, the holders of Series B Preferred
Stock are entitled to vote as a class to elect two (2) members of the
Issuers Board of Directors.
Investor
Rights Agreement
Under
the investor rights agreement, the Trident Entities have a right of first
refusal on certain issuances of stock of the Issuer, certain rights to
financial information, and certain inspection rights. The Issuer has also
agreed that it will not, without first obtaining the approval of holders of a
majority in interest of shares held by the Trident Entities, (a) enter
into transactions with the Issuers affiliates except upon terms that are at
least as favorable to the Issuer as could be obtained in a transaction with
unaffiliated or disinterested parties; (b) create or issue any class or
series of stock or other securities convertible into equity securities having
any right, preference or privilege senior to or on a parity with any series of
preferred stock then held by the Trident Entities; (c) adversely change
the rights of, or increase the authorized number of shares of, the Preferred
Stock; (d) enter into any bankruptcy filing, liquidation, assignment for
the benefit of creditors, or similar event; (e) redeem, repurchase, pay or
declare dividends or make any distribution on capital stock other than the
Preferred Stock; or (f) subject to certain limitations and exceptions,
issue or sell, or be deemed to have issued or sold, Common Stock for an
effective price less than the fair market value of the Common Stock, unless at
the time of the action the Trident Entities and their affiliates hold
12
less
than a requisite number of shares of the Issuers capital stock. The Issuer
also has agreed to limit, in certain circumstances, the terms of registration
rights granted after the date of the 2005 Stock Purchase Agreement. The Issuer
further agreed to consult, in good faith, with the Trident Entities on matters
relating to termination or selection of the Issuers president or chief
executive officer and to maintain director and officer liability insurance in
an amount not less than $3,000,000, unless the Trident Entities consent to a
lower amount.
Notes and Note Purchase
Agreement
Tridents Entities purchased
the Notes from the Issuer pursuant to the Note Purchase Agreement. The Notes are senior unsecured obligations of
the Issuer that bear interest at a rate of 14% per year. All principal and accrued but unpaid interest
is due and payable on the earlier of (i) November 1, 2010 and (ii) immediately
upon consummation of a Change in Control (as defined in the Notes). In the event that a Change in Control occurs
prior to payment in full of the Notes, in addition to payment of principal and
accrued but unpaid interest, the Trident Entities will be entitled to receive
an amount upon consummation of such Change in Control equal to the greater of (x) 50%
of the principal amount of the Notes or (y) the amount above the principal
amount of the Notes which the Trident Entities would have received in the
Change in Control had the Notes been converted into the Securities immediately
prior to the consummation of such Change in Control.
Prior to their maturity, the
Notes will mandatorily convert into the Securities upon (i) the Issuers
receipt of all necessary approvals from its shareholders in order to permit the
consummation of the transactions contemplated by the Note Purchase Agreement
and the Notes, including approval of an amendment and restatement of the
Issuers articles of incorporation (the Amended Articles) from a majority of
the holders of the Common Stock and each series of outstanding preferred stock
of the Issuer (calculated on an as-converted to Common Stock basis) and
approvals that are necessary under the rules and regulations of Nasdaq in
connection with the issuance of the Securities (the Shareholder Approvals)
from a majority of the holders of the Common Stock (calculated on an
as-converted to Common Stock basis), and (ii) following receipt of the
Shareholder Approvals, the filing of the Amended Articles with the Secretary of
State of the State of Minnesota. Upon
conversion, all accrued but unpaid interest on the Notes will be forgiven and
the Issuer will not have any obligation to pay such interest to the Trident
Entities. In the event the Issuer fails
to make payment on the Note when due, overdue amounts will bear interest at a
rate of 20% per year.
Under the terms of the Note
Purchase Agreement, the Issuer has agreed to (i) prepare a proxy statement
and file it with the Securities and Exchange Commission within 60 days
following the date of the Note Purchase Agreement in order to convene a meeting
of the Issuers shareholders at which the Issuer will seek the Shareholder
Approval (the Shareholders Meeting), (ii) cause such proxy statement to
be mailed to the Issuers shareholders within 90 days following the date of the
Note Purchase Agreement, and (iii) hold the Shareholders Meeting within
120 days following the date of the Note Purchase Agreement.
In the Note Purchase Agreement, the Issuer
has also agreed, subject to certain limitations, to register the resale of all
or a portion of the shares of Common Stock issuable upon conversion of the
Shares and upon exercise of the Warrants (the Registrable Securities)
following the written request of the holders of a majority of the Registrable
Securities (the Majority Holders) by filing one or more registration
statements on Form S-3 (or another appropriate form) or, in certain
circumstances in connection with an underwritten public offering, on Form S-1
(or a similar form) with the Securities and Exchange Commission within 90 days
following such request, and to cause such registration statement to become
effective within 150 days following the date of such registration request (or,
in the case of a Form S-3 other than the initial Form S-3 requested
by the Majority Holders, 30 days and 90 days following the date of the
applicable registration request, respectively).
In the event that the Issuer fails to file or cause to be declared
effective a registration statement on Form S-3 within certain specified
time periods following a registration request from the Majority Holders the
Issuer may, in certain circumstances, be required to issue additional warrants
to purchase shares of Common Stock to the Trident Entities on the terms set
forth in the Note Purchase Agreement.
The Issuer has agreed to take such actions as may be necessary to keep
any registration statement filed pursuant to the Note Purchase Agreement
continuously effective until the earlier of (i) December 4, 2018 and (ii) such
time as all Registrable Securities then held by the Trident Entities may be
sold without volume or other restrictions during any and all three months
periods without compliance with the registration requirements of the securities
laws pursuant to Rule 144, subject to the Issuers right to suspend the
sale of Common Stock pursuant to such registration statement and the use of the
related prospectus that is part of the registration statement during specified
periods under certain circumstances. The
Issuer has also agreed to provide the Trident Entities with certain piggyback
registration rights to participate in underwritten public offerings of the
Issuers securities.
13
The
Issuer is obligated to pay all of the expenses it incurs in connection with
complying with its registration obligations under the Note Purchase Agreement
and the purchasers exercise of their registration rights contained in the Note
Purchase Agreement (other than underwriting discounts and selling commissions),
including reasonable fees and expenses of one counsel to the purchasers not to
exceed $50,000. The Issuer has agreed to indemnify the Trident Entities and
related persons against certain liabilities under the securities laws in
connection with the sale of securities under such registrations.
A copy of the Note Purchase
Agreement is attached hereto as Exhibit 2 and a copy the form of Note
issued to the Trident Entities is attached hereto as Exhibit 3, each of
which is incorporated by reference herein.
Support Agreements
On
December 4, 2009, Trident Entities (referred to herein as, the Supporting
Stockholders) entered into a support agreement (the Support Agreement) with
TCV Funds.
Pursuant
to the terms of the Support Agreement, the Supporting Stockholders has agreed
to vote any Common Stock or other equity securities of the Issuer owned by the
Supporting Stockholder as of the date of the Support Agreement or thereafter
acquired (subject to certain limitations), among other things, (a) in
favor of the approval of the Note Purchase Agreement and the Notes, (b) in
favor of approving the Amended Articles, including any amendment to any
certificate of designation of preferences of any series of preferred stock of
the Issuer owned by the Supporting Stockholder, (c) in favor of any
approvals necessary or required under the rules and regulations of Nasdaq
in connection with the transactions contemplated by the Note Purchase Agreement
and the Notes and the issuance of any Securities (including approval under
Nasdaq Listing Rule 5635), (d) in favor of any adjournment or
postponement recommended by the Issuer with respect to the Shareholders
Meeting, (e) against any Alternative Transaction (as defined in the Note
Purchase Agreement), (f) against any change in the business, management or
Board of Directors of the Issuer (other than in connection with the
transactions contemplated by the Note Purchase Agreement or as approved by a
majority of the Board of Directors) and (g) against any proposal, action
or agreement that would impede, frustrate, prevent or nullify any provision of
the Support Agreement, the Note Purchase Agreement, the Notes or the approval
of the Amended Articles. In the Support
Agreement the Supporting Stockholders also agree, among other matters, not to
sell or transfer, offer to sell or transfer or enter into any agreement to sell
or transfer any shares of Common Stock or other equity securities of the Issuer
owned by the Supporting Stockholder as of the date of the Support Agreement or
thereafter acquired without the prior written approval of TCV VII and TCV
VII(A), or to grant any power-of-attorney or proxy with respect thereto, and
not to solicit or participate in any Alternative Transaction. The Support Agreement terminates upon the
mutual agreement of TCV VII and TCV VII(A) and the Supporting Stockholders
or the conversion or payment in full of all of the Notes in accordance with
their terms.
A
copy of the form of Support Agreement is attached hereto as Exhibit 4 and
is incorporated by reference herein.
Certificate
of Designation
The
rights and privileges of the Shares are contained in the Certificate of
Designation of Preferences of Series G Preferred Stock of the Issuer (the
Certificate of Designation) which is included within the Amended
Articles. The Issuer has agreed to file
the Amended Articles, including the Certificate of Designation, within two
business days after the date on which the Issuer receives confirmation that the
Shareholder Approval was obtained at the Shareholders Meeting and, upon such
filing, the Notes will automatically convert into the Shares and the Warrants.
Under the Certificate of Designation, the
Trident Entities, at each of their option, will be able to convert their Shares
at any time into a number of shares of Common Stock determined by dividing the
initial issuance price for the Series G Preferred Stock, equal to $3.00
per share (the Original Series G Issue Price), by the Conversion Price
(as such term is defined in the Certificate of Designation), which is initially
set at $3.00 per share, rounded to the nearest whole number of shares. The Conversion Price is subject to certain
anti-dilution adjustments related to stock splits, recapitalizations, mergers,
reorganizations and similar transactions.
In the event of a Liquidation Event (as such
term is defined in the Certificate of Designation), unless waived by a majority
of the outstanding shares of Series G Preferred Stock (or any class or
series that has priority or preference over the Series G Preferred Stock),
each holder of Series G Preferred Stock is entitled to receive, prior to
any distribution to the holders of the Issuers outstanding Series F
Preferred Stock, Series D Preferred Stock, Series C Preferred Stock, Series B
Preferred Stock and Common Stock, the greater of (i) an amount per share
equal to the Original Series G Issue Price (as adjusted for any stock
14
dividends,
combinations or splits with respect to such shares), plus any declared but
unpaid dividends, and (ii) the amount such holder would have received in
connection with the Liquidation Event if the holder held the number of shares
of Common Stock issuable upon conversion of the Series G Preferred Stock
then held by such holder. If the Issuer
pays a dividend on any capital stock of the Issuer other than the Series G
Preferred Stock, including the Common Stock (other than any dividend with
respect to any subsequently issued class or series of capital stock that by its
terms is senior to the Series G Preferred with respect to the payment of
dividends and other than the existing accruing dividend paid on the Series B
Preferred Stock), then the Issuer must pay a dividend on all outstanding shares
of Series G Preferred Stock in an amount per share equal to the maximum
amount paid or set aside for any such other share of capital stock (determined
on an as-converted to Common Stock basis).
Except
as noted in the following sentence, the Issuer is required to redeem all of the
outstanding shares of Series G Preferred Stock at the election of 60% of
the holders thereof, at a price per Share equal to the Original Series G
Issue Price (as adjusted for stock dividends, splits, recapitalizations and the
like) plus accrued and unpaid dividends, at any time following the occurrence
of the earliest of (i) the date that is five years after the first
issuance of Series G Preferred Stock, (ii) a Change in Control (as
defined in the Certificate of Designation), or (iii) the occurrence of
certain adverse judgments against the Issuer, certain defaults on the Issuers
indebtedness or a bankruptcy of the Issuer or similar event. However, the Issuer may, at its option,
decline to redeem such shares of Series G Preferred Stock, but if the
Issuer declines to redeem the Series G Preferred Stock, the Series G
Preferred Stock will begin to bear cumulative dividends from the time of the
election to redeem at the rate of 4% of the original issue price per annum. The
Shares are also redeemable by the Issuer at any time following the date five
years from the original issuance of the Shares, at a price per Share equal to
the Original Series G Issue Price (as adjusted for stock dividends,
splits, recapitalizations and the like) plus accrued and unpaid dividends, but
only if (i) the market value of the Common Stock is at least three times
the then effective Conversion Price on each of the 70 consecutive trading days
immediately preceding the date the notice of such optional redemption is
delivered by the Issuer and on each of the 20 consecutive trading days
immediately preceding the date scheduled for such redemption and (ii) either
(x) a registration statement is in effect with respect to all of the
shares of Common Stock issuable upon conversion of the Series G Preferred
Stock then outstanding and all such shares of Common Stock would then be
saleable into the public market by the holders therefor pursuant to such
registration statement without any other restriction under applicable
securities laws (other than notice requirements and volume limitations, if
applicable, due to status as an affiliate of the Issuer) or (y) all of the
shares of Common Stock issuable upon conversion of the Series G Preferred
Stock can be sold without volume or other restrictions during any and all
three-month periods without compliance with registration requirements pursuant
to Rule 144(b)(1).
The
Certificate of Designation provides that the holders of a majority of the
outstanding shares of Series G Preferred Stock, voting as a separate
class, are entitled to nominate and elect one member of the Issuers Board of
Directors for so long as at least 2,500,000 shares of Series G Preferred
Stock remain outstanding.
The
holders of the Series G Preferred Stock have the right to vote with the
holders of Common Stock as a single class on any matter submitted to a vote of
the holders of Common Stock and are entitled to vote that number of votes equal
to the aggregate number of shares of Common Stock issuable upon the conversion
of such holders shares of Series G Preferred Stock. In addition, for so long as at least
3,000,000 shares of Series G Preferred Stock are outstanding, the
affirmative vote of the holders of a majority of the outstanding shares of Series G
Preferred Stock, voting as a separate class, is required for the Issuer to (i) create
(by new authorization, recapitalization, designation or otherwise) or issue any
class or series of stock or any other securities convertible into equity
securities, or issued as units or in connection with equity securities of the
Issuer, having any right, preference or privilege senior to or on parity with the
Series G Preferred Stock with respect to dividends, redemption or
liquidation preference, (ii) alter or change (whether pursuant to
amendment, waiver or repeal of the Issuers articles or incorporation or bylaws
or otherwise) the rights, preferences or privileges of the Series G
Preferred Stock so as to adversely affect such shares, (iii) make any
redemption, repurchase, payment or declaration of any dividend or distribution
on any shares of capital stock of the Issuer other than the Series G
Preferred Stock and certain dividends payable on Series B Preferred Stock,
or (iv) enter into any bankruptcy, filing, liquidation or similar
event. In addition, for so long as any
shares of Series G Preferred Stock remain outstanding, the Issuer may not
increase or decrease the number of authorized shares of Series G Preferred
Stock without the written consent of holders of not less than 60% of the
outstanding shares of Series G Preferred Stock.
A
copy of the Certificate of Designation in the form included in the Articles
Amendment is attached hereto as Exhibit 5 and is incorporated by reference
herein.
15
Warrants
The Warrants
represent the right to purchase shares of the Issuers Common Stock at an
exercise price of $3.00 per share. Payment of the exercise price may be made in
cash, or, subject to certain exceptions, through the surrender of Common Stock
underlying Warrants with a fair market value equal to the exercise price of the
Warrants being exercised (otherwise known as net-issue exercise). The exercise
price and the number of shares issuable upon exercise of the Warrants is
subject to anti-dilution adjustment in the event of stock splits and under
certain other circumstances as set forth in the Warrants. The Warrants expire
on the seventh anniversary of the date they were first issued.
A copy of the form of
Warrant issued to the Trident Entities is attached hereto as Exhibit 6 and
is incorporated by reference herein.
Voting Agreement
So long at least
325,000 shares of the Issuers Series B Preferred Stock remain
outstanding, the holders of Series B Preferred Stock are entitled to vote
as a class to elect two (2) members of the Issuers Board of
Directors. The Trident Entities, the
Issuer, and JDSTG entered into a Amended and Restated Voting Agreement on December 4,
2009 (the Voting Agreement), replacing a prior voting agreement having
similar terms. Under Voting Agreement,
if the Trident Entities are no longer able to elect two (2) members of the
Issuers Board of Directors as provided in the Certificate of Designation of Series B
Preferred Stock, then for so long as the Trident Entities hold at least 800,000
common stock equivalents, the parties to the voting agreement agree to vote all
shares of capital stock held by them for the election of designees of the
Trident Entities as follows: (a) if the authorized size of the Issuers
Board of Directors is at least eight members, then the Trident Entities may
designate two persons for the election of directors; and (b) if the
authorized size of the Issuers Board of Directors is seven or fewer members,
then the Trident Entities may designate one person for the election of
directors and all parties agree to vote for a second member who is nominated by
the Trident entities, acceptable to a majority of the remaining members of the
Board of Directors, an industry representative, and not affiliated with the
Issuer. The voting agreement also provides that the Issuer will not take any
action to increase the authorized number of shares of Series B Preferred
Stock or Series C Preferred Stock without the written consent of holders
of at least 60% of the Series B Preferred Stock or Series C Preferred
Stock, as applicable. Additionally, subject to certain limitations, the voting
agreement provides that the Issuer will use its best efforts to cause its Board
of Directors to appoint at least one of the Trident Entities designees to each
of the committees of the Board of Directors.
The Voting Agreement also provides that the Issuer will enter into a
customary indemnification agreement with any individual nominated by the
Trident Entities to serve as a director on the Issuers Board of Directors.
JDSTG grants the Trident Entities a right of first refusal in the event that
JDSTG proposes to sell or transfer shares of capital stock (subject to certain
exceptions) with respect to a portion of such shares to be transferred or sold
equal to the aggregate number of shares of Common Stock owned by the Trident
Entities (as calculated on a fully diluted, as-converted and as-exercised
basis) over the aggregate number of shares of Common Stock owned by the Trident
Entities and any other stockholders having a right of first refusal with
respect to the purchase of such shares from JDSTG (as calculated on a fully
diluted, as-converted and as-exercised basis).
A copy of the
Voting Agreement is attached hereto as Exhibit 7 and is incorporated by
reference herein.
Item 7.
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Material to be Filed as Exhibits.
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Item 7 is hereby amended and supplemented by the
addition of the following exhibits:
Exhibit 1 Agreement
regarding filing of joint Schedule 13D/A.
Exhibit 2
Note Purchase Agreement, dated December 4, 2009, among Xata Corporation,
TCV VII, L.P., TCV VII(A), L.P., TCV Member Fund, L.P., Trident Capital Fund-V,
L.P., Trident Capital Fund-V Affiliates Fund, L.P., Trident Capital Fund-V
Affiliates Fund (Q), L.P., Trident Capital Fund-V Principals Fund, L.P.,
Trident Capital Parallel Fund-V, C.V., and GW 2001 Fund, L.P.*
Exhibit 3 Form of
Senior Mandatorily Convertible Promissory Note of Xata Corporation*
16
Exhibit 4 Form of
Support Agreements entered into between TCV VII, L.P. and TCV VII(A), L.P and
Trident Capital Fund-V, L.P., Trident Capital Fund-V Affiliates Fund, L.P.,
Trident Capital Fund-V Affiliates Fund (Q), L.P., Trident Capital Fund-V
Principals Fund, L.P., Trident Capital Parallel Fund-V, C.V.*
Exhibit 5
Certificate of Designation of Preferences of Series G Preferred Stock of
Xata Corporation*
Exhibit 6 Form of
Warrant to Purchase Common Stock of Xata Corporation*
Exhibit 7
Voting Agreement, dated December 4, 2009, among Xata Corporation., Trident
Capital Fund-V, L.P., Trident Capital Fund-V Affiliates Fund, L.P., Trident
Capital Fund-V Affiliates Fund (Q), L.P., Trident Capital Fund-V Principals
Fund, L.P., Trident Capital Parallel Fund-V, C.V. and John Deere Special Technologies Group, Inc.*
*
Filed as an exhibit to the Issuers Current Report on Form 8-K,
relating the transactions described herein, to be filed with the Securities and
Exchange Commission on December 10, 2009, and incorporated herein by
reference.
17
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: December 11, 2009
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Trident Capital
Fund-V, L.P.
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Trident Capital
Fund-V Affiliates Fund, L.P.
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Trident Capital
Fund-V Affiliates Fund (Q), L.P.
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Trident Capital
Fund-V Principals Fund, L.P.
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Executed on
behalf of the foregoing funds by the undersigned as an authorized signatory
of Trident Capital Management-V, L.L.C., which serves as the sole general
partner of each such fund, and on behalf of Trident Capital Management-V,
L.L.C.:
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/s/ Donald R.
Dixon
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Signature
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Donald R. Dixon,
Managing Director
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Name/Title
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Trident Capital
Parallel Fund-V, C.V.
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Executed on
behalf of Trident Capital Parallel Fund-V, C.V. by the undersigned as an
authorized signatory of Trident Capital Management-V, L.L.C., which serves as
its sole investment partner:
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/s/ Donald R.
Dixon
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Signature
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Donald R. Dixon,
Managing Director
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Name/Title
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The original
statement shall be signed by each person on whose behalf the statement is filed
or his authorized representative. If the statement is signed on behalf of a
person by his authorized representative (other than an executive officer or
general partner of the filing person), evidence of the representatives
authority to sign on behalf of such person shall be filed with the statement:
provided, however, that a power of attorney for this purpose which is already
on file with the Commission may be incorporated by reference. The name and any
title of each person who signs the statement shall be typed or printed beneath
his signature.
Attention:
Intentional misstatements or omissions of fact
constitute Federal criminal violations (See 18 U.S.C. 1001)
18
EXHIBIT
1
Joint
Filing Statement
We, the
undersigned, hereby express our agreement that the attached Schedule 13D/A
(and any amendments thereto) relating to the Common Stock of XATA Corporation
is filed on behalf of each of the undersigned.
Date: December 11,
2009
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Trident Capital
Fund-V, L.P.
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Trident Capital
Fund-V Affiliates Fund, L.P.
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Trident Capital
Fund-V Affiliates Fund (Q), L.P.
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Trident Capital
Fund-V Principals Fund, L.P.
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Executed on
behalf of the foregoing funds by the undersigned as an authorized signatory
of Trident Capital Management-V, L.L.C., which serves as the sole general
partner of each such fund, and on behalf of Trident Capital Management-V,
L.L.C.:
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/s/ Donald R.
Dixon
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Signature
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Donald R. Dixon,
Managing Director
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Name/Title
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Trident Capital
Parallel Fund-V, C.V.
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Executed on
behalf of Trident Capital Parallel Fund-V, C.V. by the undersigned as an
authorized signatory of Trident Capital Management-V, L.L.C., which serves as
its sole investment partner:
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/s/ Donald R.
Dixon
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Signature
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Donald R. Dixon,
Managing Director
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Name/Title
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