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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[ ] Check this box if no longer subject of Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
DOHERTY SEAN P.
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(Last) (First) (Middle)
520 LOGUE AVENUE
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(Street)
MOUNTAIN VIEW CA 94043
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
SOFTNET SYSTEMS, INC. (SOF)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
05/98
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[XXX] Director [ ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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7. Individual or Joint/Group Filing (Check applicable line)
[XX] Form filed by one Reporting Person
[ ] Form filed by more than one Reporting Person
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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Page 1 of 3
<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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</TABLE>
* If the Form is filed by more than one Reporting Person, see Instruction
4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
Page 2 of 3
<PAGE>
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
9. 10.
Number Owner-
of ship
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
of Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series B Convertible Common by limited
Preferred Stock (1) 5/29/98 P 1,000(2) (3) 5/29/01 Stock (4) 1,000 1,000 I liability
company
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Common Stock Warrants Common by limited
(right to buy) 13.75 5/29/98 P 20,000(2) Immed. 5/29/02 Stock 20,000 (5) 20,000 I liability
company
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</TABLE>
Explanation of Responses:
(1) The conversion price shall be: (i) on and prior to March 1, 1999, $13.20,
(ii) March 1, 1999, and thereafter, the lesser of (a) the Market Price at
the time of conversion or (b) $13.20 per share; provided that if the
average price per share of common stock is greater than $14.30 for the
20-day period prior to March 1, 1999, the conversion price on March 1,
1999, and thereafter shall be $14.30 per share.
(2) The reporting person disclaims beneficial ownership of these securities
except to the extent of his pecuniary interest therein.
(3) The Series B Convertible Preferred Stock is convertible at the earlier of
(i) the day a registration statement registering the resale of the Common
Stock into which it is convertible is declared effective, or (ii) 8/29/98.
(4) The number of shares shall be determined upon the setting of the conversion
price, but in no event shall such number be less than 69,930 shares.
(5) Warrants to purchase 20,000 Common shares of SOF were issued for every
$1,000,000 invested in Series B Preferred Stock.
/s/ Sean P. Doherty 6-10-98
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedures.
Alternatively, this Form is permitted to be submitted to the
Commission in electronic format at the option of the reporting person
pursuant to ruke 101(b)(4) of Regulatiob S-T.
Page 3 of 3
(122797DTI)
