Document:

Pricing Committee Minutes

 
EXHIBIT 4.3

 
MINUTES OF THE PRICING COMMITTEE OF THE

BOARD OF DIRECTORS OF 
PAN PACIFIC RETAIL PROPERTIES, INC. 
 
May 28, 2003 
 
A meeting of the pricing committee (the “Pricing Committee”) of Pan Pacific Retail Properties, Inc., a Maryland corporation (the “Company”), was held at 8:30 a.m., (California time) on May
28, 2003, by telephone conference call. 
 
The
following directors, constituting all of the members of the Pricing Committee, Stuart A. Tanz and Joseph P. Colmery, were present at the meeting by telephone by means of which all persons participating in the meeting could hear each other. Also
present at the meeting at the invitation of the foregoing directors was Joseph B. Tyson, Executive Vice President, Chief Financial Officer, Secretary and Treasurer of the Company. 
 
Mr. Tanz served as Chairman of the meeting and directed that Mr. Tyson serve as Secretary of the meeting.

 
The meeting followed a meeting of the members of
the Pricing Committee listed above and representatives of Credit Suisse First Boston Corporation, for itself or as representative of a group of investment banking firms, or one or more other investment banking firms (collectively the
“Underwriters”) at which the parties discussed the terms of the proposed offer and sale of a series of debt securities to be known as the 4.70% Senior Unsecured Notes due June 1, 2013 (the “Notes”) by the Company
(the “Offering”) to the Underwriters. 
 
After an opportunity for discussion, the following resolutions were moved, seconded and unanimously adopted by the Pricing Committee: 
 
WHEREAS, in resolutions adopted on May 23, 2003 (the “Resolutions”), the Board of Directors authorized the
registration, issuance and sale of up to $95 million of securities, such securities to be unsecured debt securities (the “Securities”); and 
 
WHEREAS, the Company has filed with the Securities and Exchange Commission (the “Commission”) a registration
statement on Form S-3 (File No. 333-63743) (as amended, the “Registration Statement”) relating to the Securities and the Commission declared the Registration Statement effective on October 5, 1998; and 
 
WHEREAS, the Board of Directors has determined to issue
the Notes pursuant to an indenture dated as of April 6, 2001 (the “Indenture”), the form of which is attached hereto as Exhibit A, between the Company and The Bank of New York, as Trustee (the “Trustee”), and
to offer and sell the Notes to the Underwriters, pursuant to a Terms Agreement and an Underwriting Agreement dated as of May 28, 2003 (the “Underwriting Agreement”) between the Company and the Underwriters; and 
 
WHEREAS, pursuant to resolutions adopted by the Board
of Directors on May 23, 2003, the Board of Directors established a Pricing Committee of the Board of Directors for 

the purpose of approving, among other things, the amount, manner and terms of the issuance and sale of the
Notes and appointed Stuart A. Tanz and Joseph P. Colmery to serve on such committee. 
 
NOW THEREFORE, BE IT RESOLVED, that in accordance with Section 301 of the Indenture, the amount, form and terms of the Notes are hereby established as follows (capitalized terms used in these
resolutions and not otherwise defined herein having the same definitions as in the Indenture): 
 
1. The Notes shall constitute a series of Securities having the title “4.70% Senior Unsecured Notes due June 1, 2013.” 
 
2. The aggregate principal amount of Notes that may be authenticated and delivered under the Indenture
(except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305, 306, 906, 1107 or 1305 of the Indenture) shall be initially limited in aggregate principal
amount to $75,000,000. 
 
3. The entire outstanding
principal of the Notes shall be payable on June 1, 2013 (the “Maturity Date”). 
 
4. The rate at which the Notes shall bear interest shall be 4.70% per annum; the date from which such interest shall accrue shall be December 1, 2003, the Interest Payment Dates on which such interest
will be payable shall be June 1 and December 1 of each year, beginning December 1, 2003; the Regular Record Dates for the interest payable on the Notes on any Interest Payment Date shall be May 15 or November 15, as the case may be, immediately
preceding the applicable Interest Payment Date; and the basis upon which interest shall be calculated shall be that of a 360-day year consisting of twelve 30-day months. If any principal of or premium, if any, or interest on any of the Notes is not
paid when due, then such overdue principal and, to the extent permitted by law, such overdue premium or interest, as the case may be, shall bear interest, until paid or until such payment is duly provided for, at the rate of 4.70% per annum.

 
5. The place where the principal of, premium, if
any, and interest on the Notes shall be payable, where Notes may be surrendered for the registration of transfer or exchange, and where notices or demands to or upon the Company in respect of the Notes and the Indenture may be served shall be the
office or agency maintained by the Company for such purpose in the Borough of Manhattan, The City of New York, which shall initially be the Corporate Trust Office of the Trustee at 101 Barclay St., Floor 21 West, New York, New York 10286.

 
6. The Notes shall be redeemable at any time at
the option of the Company, in whole or from time to time in part, at a Redemption Price (payable in Dollars) equal to the sum of (i) the principal amount of the Notes being redeemed plus accrued interest thereon to the Redemption Date and (ii) the
Make-Whole Amount (as defined in the form of Note attached hereto as Exhibit B), if any, with respect to such Notes; provided that installments of interest on Notes whose Stated Maturity is on or prior to the relevant Redemption Date shall be
payable to 

the Holders of such Notes (or one or more Predecessor Securities) registered as such at the close of
business on the relevant record dates according to their terms and the provisions of Section 307 of the Indenture. As used in the Indenture and these resolutions, all references to “premium” and “premium, if any” on the Notes,
and all similar references with respect to the Notes, shall be deemed to refer to and include the Make-Whole Amount, if any. 
 
7. The Notes shall not be redeemable at the option of any Holder thereof, upon the occurrence of any particular circumstance or otherwise.
The Notes will not have the benefit of any mandatory sinking fund. 
 
8. The Notes shall be issued in denominations of $1,000 and any integral multiples thereof. 
 
9. The Trustee shall be the initial Security Registrar, transfer agent and Paying Agent for the Notes. 
 
10. The entire outstanding principal amount of the Notes shall
be payable upon declaration of acceleration of the maturity of the Notes pursuant to Section 502 of the Indenture. 
 
11. Payment of the principal of, premium, if any, and interest on the Notes shall be made in Dollars, and the Notes shall be denominated
in Dollars. 
 
12. The amount of payments of
principal of, premium, if any, and interest on the Notes shall not be determined with reference to an index, formula or other similar method. 
 
13. Payments of the principal of, premium, if any, and interest on the Notes shall be made in Dollars, and the Holders have no right to
elect the currency in which such payments are made. 
 
14. In addition to the covenants of the Company set forth in the Indenture, the covenants set forth in the form of Note attached hereto as Exhibit B under the captions “Limitation on Incurrence of Total Debt,”
“Limitation on Incurrence of Secured Debt,” “Debt Service Coverage” and “Maintenance of Total Unencumbered Assets” (collectively, the “Additional Covenants”) shall be and hereby are added to the
Indenture for the benefit of the holders of the Notes, and the Additional Covenants, together with the defined terms (the “Additional Definitions”) set forth in such form of Note under the captions “Certain Definitions,”
are hereby incorporated by reference in and made a part of these resolutions and the Indenture as if set forth in full herein and therein; provided that the Additional Covenants shall only be effective for so long as any of the Notes is Outstanding.

 
15. The Notes shall be issuable only as
Registered Securities without coupons and shall initially be issued in permanent global form (the “Global Note”). Beneficial owners of interests in the Global Note may exchange such interests for Notes of like tenor of any
authorized denomination only under the circumstances provided in Section 305 of the Indenture. The Depository Trust Company (“DTC”) shall be the initial depository with respect to the Global Note. 

 
16. The Notes
will not be issuable as Bearer Securities, and a temporary global certificate will not be issued. 
 
17. Except as otherwise provided in the Indenture and in these resolutions with respect to the payment of Defaulted Interest, interest on
any Note shall be payable only to the Person in whose name that Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest. Payments of principal, premium, if any, and interest in
respect of the Notes will be made by the Company by wire transfer of immediately available funds; provided that, in the event that any Notes are issued in definitive certificated form, the Holders thereof shall have given appropriate wire transfer
instructions to the Company and, in the event that such wire transfer instructions shall not have been given to the Company by the Holder of any Note issued in definitive certificated form, payments of interest on such Note may be made by mailing a
check for such interest to the address of such Holder as it appears on the Security Register. 
 
18. Sections 1402 and 1403 of the Indenture shall be applicable to the Notes, and the provisions of Section 1403 shall also be applicable with respect to the Company’s obligations under the
Additional Covenants; provided that the Company shall be entitled to effect defeasance or covenant defeasance only with respect to all, and not less than all, of the Notes. 
 
19. The Notes will be authenticated and delivered as provided in Section 303 of the Indenture. 
 
20. The Company shall not be required to pay Additional
Amounts with respect to the Notes as contemplated by Section 1010 of the Indenture. 
 
21. The Notes shall not be convertible into Common Stock or Preferred Stock. 
 
22. The Notes will be direct, senior unsecured obligations of the Company and will rank equally with all other senior unsecured
indebtedness of the Company from time to time outstanding. 
 
23. Insofar as Section 801 of the Indenture is applicable to the Notes, the term “indebtedness,” as used in Section 801(2), shall be deemed to include “Debt” and “Secured Debt” (as such terms are defined
in the form of Note attached hereto as Exhibit B). 
 
24. The provisions of Section 1011 of the Indenture shall be applicable with respect to any term, provision or condition set forth in the Additional Covenants, in addition to any term, provision and condition set forth in Sections
1004 to 1008, inclusive, of the Indenture. 
 
25.
The Notes shall have such additional terms as are set forth in the form of Note attached hereto as Exhibit B, which terms are hereby incorporated by reference in and made a part of these resolutions and the Indenture as if set forth in full
herein and therein. 
 
RESOLVED, that the
offering price of the Notes shall be 99.755% of the principal amount thereof plus accrued interest from December 1, 2003, and the Notes shall be sold to the Underwriters at a price equal to 99.105% of the principal amount thereof. 

 
RESOLVED, that the form of Underwriting Agreement presented to and reviewed by this committee, and the form of Note attached hereto as Exhibit C and Exhibit B, respectively, be, and each of them hereby is,
approved (it being understood that, in the event that Notes are ever issued in definitive certificated form, the legends appearing as the first two paragraphs on the first page of such form of Notes may be removed); and the form and terms of the
Indenture, and the execution and delivery thereof by the Company, are hereby authorized, approved, ratified and reconfirmed in all respects. 
 
RESOLVED, that each of the Chairman of the Board, Chief Executive Officer, President, any Senior Vice President, Secretary and
Treasurer of the Company be, and each of them acting singly, hereby is, authorized and directed, in the name and on behalf of the Company and where appropriate under its corporate seal, attested by its Secretary or Treasurer, to execute and deliver
the Notes and the Underwriting Agreement in substantially the forms approved hereby, with such changes as shall have been approved by the executing officer, such approval to be conclusively evidenced by the execution thereof (it being understood
that any signatures, attestations and corporate seals appearing on the Notes may be facsimiles thereof). 
 
RESOLVED, that the prospectus dated October 5, 1998 and prospectus supplement dated May 28, 2003, relating to the Notes be, and the
same hereby are, ratified and approved in all respects. 
 
RESOLVED, that all officers of the Company be, and each of them hereby is, authorized, in the name and on behalf of the Company, to make, execute and deliver or cause to be made, executed and delivered, and to evidence the
approval of the Board of Directors of, all such officers’ certificates, depository agreements, letters of representation or other agreements or arrangements necessary or appropriate in connection with the administration of any book-entry
arrangements for the Notes, and such other agreements, undertakings, documents or instruments, and to perform all such acts and make all such payments, as may, in the judgment of such officer, be necessary, appropriate or desirable to effectuate the
purpose of these resolutions, including the performance of the obligations of the Company under the Indenture, the Notes, the Underwriting Agreement and any other agreement, undertaking, document or instrument referred to herein or therein.

 
RESOLVED, that any and all actions
heretofore taken by the officers of the Company pursuant to the authority conferred by the preceding resolutions and consistent therewith is ratified, approved and confirmed. 

 
There being no
further business to come before the Committee, upon motion duly made, seconded and unanimously carried, the meeting was adjourned. 
 

	 /s/    JOSEPH B.
TYSON        

	 Joseph B. Tyson,
 Secretary of the Meeting

 

	 ATTEST:

	
	 /s/    STUART A.
TANZ        

	 Stuart A. Tanz,
 ChairmanStock Purchase Warrant exercisable until September 30, 2007

Exhibit 4.4 
 
THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH
REGISTRATION IS NOT REQUIRED. 
 
AMERICAN
TECHNOLOGY CORPORATION 
 
WARRANT TO PURCHASE
COMMON STOCK 
 
September 30, 2002 
 
Void After September 30, 2007 
 
THIS CERTIFIES THAT, for value received, Sunrise Capital,
Inc. or assigns (the “Holder”), is entitled to subscribe for and purchase at the Exercise Price (defined below) from American Technology Corporation, a Delaware corporation, (the “Corporation”) up to one hundred thousand
(100,000) shares of Common Stock of the Corporation (the “Common Stock”). The term “Warrant” as used herein shall mean this Warrant. 
 
1.    Definitions.  As used herein, the following terms shall have the following respective meanings:

 
(a)    “Exercise
Period” shall mean the period commencing with the date beginning 48 hours after the date hereof and ending five (5) years from September 30, 2002, unless sooner terminated as provided below. 
 
(b)    “Exercise Price” shall
mean $4.25 per share, subject to adjustment pursuant to Section 6.1. 
 
(c)    “Exercise Shares” shall mean the shares of the Corporation’s Common Stock issuable upon exercise of this Warrant. 
 
2.    Exercise of Warrant.  The rights represented by this Warrant may
be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Corporation at its address set forth above (or at such other address as it may designate by notice in writing to the Holder): 
 
(a)    An executed Notice of Exercise in
the form attached hereto; 
 
(b)    Payment of the Exercise Price either (i) in cash or by check, or (ii) by cancellation of indebtedness; and 
 
(c)    This Warrant or a true and correct copy thereof. 
 
Upon the exercise of the rights represented by this Warrant, certificates for the Exercise Shares so
purchased shall be registered in the name of, and issued and delivered to the Holder, together with a warrant of like tenor and effect for any Exercise Shares not purchased upon partial exercise hereof. 
 
The person in whose name any certificate or certificates for
Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date
of delivery of such certificate or certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the Corporation are closed, such person shall be deemed to have become the holder of such shares at
the close of business on the next succeeding date on which the stock transfer books are open. 

 
2.1    Net Exercise.  Notwithstanding any provisions herein to the contrary, if the fair market value of one share of the Corporation’s Common Stock is greater than the Exercise Price (at the
date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of
this Warrant at the principal office of the Corporation together with the properly endorsed Notice of Exercise in which event the Corporation shall issue to the Holder a number of shares of Common Stock computed using the following formula:

 
X = Y (A-B) 
    A 
 

	 Where
	 	 X =
	  	 the number of shares of Common Stock to be issued to the Holder

	 	 	 Y =
	  	 the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being
exercised, the portion of the Warrant being canceled (at the date of such calculation)

	 	 	 A =
	  	 the fair market value of one share of the Corporation’s Common Stock (at the date of such
calculation)

	 	 	 B =
	  	 Exercise Price (as adjusted to the date of such calculation)

 
For
purposes of this Section 2.1 fair market value of a share of Common Stock shall mean: 
 
(i)  If traded on a stock exchange, the fair market value of the Common Stock shall be deemed to be the average of the closing selling prices of the Common Stock on the stock exchange
determined by the Board of Directors to be the primary market for the Common Stock over the ten (10) trading day period ending on the date prior to the date the Warrant is exercised, as such prices are officially quoted in the composite tape of
transactions on such exchange; 
 
(ii)  If traded over-the-counter or if listed by the National Daily Quotation Service “Pink Sheets,” the fair market value of the Common Stock shall be deemed to be the average of the closing bid prices (or, if
such information is available, the closing selling prices) of the Common Stock over the ten (10) trading day period ending on the date prior to the date the Warrant is exercised, as such prices are reported by the National Association of Securities
Dealers through its NASDAQ system, any successor system, the Pink Sheets, or any exchange on which it is listed, whichever is applicable; or 
 
(iii)  If there is no public market for the Common Stock, then the fair market value shall be determined by the Board of
Directors of the Corporation in good faith. 
 
3.    Covenants of the Corporation. 
 
3.1    Covenants as to Exercise Shares.  The Corporation covenants and agrees that all Exercise Shares that may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be duly authorized, validly issued and outstanding, fully paid and nonassessable, and free from all preemptive rights of any shareholder and all taxes, liens and charges with respect to the issuance
thereof. The Corporation further covenants and agrees that the Corporation will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of its Common Stock to provide for the
exercise of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Common Stock shall not be sufficient to permit exercise of this Warrant, the Corporation will take such
corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes. 
 

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3.2    No Impairment.  Except and to the extent as waived or consented to by the Holder, the Corporation will not, by amendment of its Certificate of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Corporation, but
will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order to protect the exercise rights of the Holder against impairment.

 
3.3    Notices of Record
Date.  In the event of any taking by the Corporation of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, the
Corporation shall mail to the Holder, at least ten (10) days prior to the date specified herein, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution. 
 
4.    Representations of Holder.

 
4.1    Acquisition of
Warrant for Personal Account; Financial Risk.  The Holder represents and warrants that it is acquiring the Warrant solely for its account for investment and not with a view to or for sale or distribution of said Warrant or any part
thereof. The Holder also represents that the entire legal and beneficial interests of the Warrant and Exercise Shares the Holder is acquiring are being acquired for, and will be held for, its account only. Holder has such knowledge and experience in
financial and business matters, or Holders professional advisors who are not affiliated with and who are not associated with the Corporation have such knowledge and experience in financial or business matters, as to be capable of evaluating the
merits and risks of its investment and of protecting their own interests in connection with the transaction, and has the ability to bear the economic risks of its investment and can afford a complete loss of Holder’s investment. 
 
4.2    Accredited
Investor.  The Holder represents and warrants that it is an “Accredited Investor” as that term is defined in Regulation D, Rule 501 of the Securities Act of 1933. 
 
4.3    Securities Are Not Registered. 
 
(a)    The Holder understands that the
Warrant and the Exercise Shares have not been registered under the Securities Act of 1933, as amended (the “Act”) on the basis that no distribution or public offering of the stock of the Corporation is to be effected by the issuance of
this Warrant. The Holder realizes that the basis for the exemption may not be present if, notwithstanding its representations, the Holder has a present intention of acquiring the securities for a fixed or determinable period in the future, selling
(in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the securities. The Holder has no such present intention. 
 
(b)    The Holder recognizes that the Warrant and the Exercise Shares must be held
indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. The Holder recognizes that the Corporation has no obligation hereunder to register the Warrant or the Exercise Shares or to
comply with any exemption from such registration, provided, however, the Exercise Shares are subject to piggyback registration rights as set forth in Section 5 herein. 
 
(c)    The Holder is aware that neither the Warrant nor the Exercise Shares may be sold
pursuant to Rule 144 adopted under the Act unless certain conditions are met, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Corporation, the resale
following the required holding period under Rule 144 and the number of shares being sold during any three month period not exceeding specified limitations. 
 

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4.4    Disposition of Warrant and Exercise Shares. 
 
(a)    The Holder further agrees not to make any disposition of all or any part of the Warrant or Exercise Shares in any event unless and until: 
 
(i)    The Corporation shall have
received a letter secured by the Holder from the Securities and Exchange Commission stating that no action will be recommended to the Commission with respect to the proposed disposition; 
 
(ii)    There is then in effect a registration statement under the Act covering such
proposed disposition and such disposition is made in accordance with said registration statement; or 
 
(iii)    The Holder shall have notified the Corporation of the proposed disposition and shall have furnished the
Corporation with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Corporation, the Holder shall have furnished the Corporation with an opinion of counsel, reasonably satisfactory to
the Corporation, for the Holder to the effect that such disposition will not require registration of such Warrant or Exercise Shares under the Act or any applicable state securities laws. 
 
(b)    The Holder understands and agrees that all certificates evidencing the shares to
be issued to the Holder may bear the following legend: 
 
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO
THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED. 
 
5.    Registration Rights. 
 
(a)    Holder shall have the right, at any time and from time to time until September 30,
2007, to include all of the shares purchased or purchasable upon the exercise of this Warrant ( the “Registrable Shares”) within any Registration Statement of the Corporation filed by the Corporation covering shares of its Common Stock
other than a Registration Statement filed solely with respect to any employee benefit plan of the Corporation or an offering solely related to an acquisition or for which such Registrable Shares cannot, in the sole judgment of the Corporation, be
appropriately registered. The Corporation shall promptly give written notice to Holder of any intended registration of its Common Stock not less than forty-five (45) days prior to the anticipated effective date of the Registration Statement, and
Holder shall, within fifteen (15) days of receipt thereof, notify the Corporation of the number of Registrable Shares it desires to include in the Registration Statement. The number of Registrable Shares which may be included by the Holder in any
such Registration Statement may be restricted by the Corporation if, in the opinion of the Corporation’s managing underwriter, the number of shares proposed to be sold by the Holder and by the Corporation in such offering exceeds the number of
securities which can be sold in such offering. In such event, the Registrable Shares of Holder to be included within such Registration Statement shall not exceed the number approved for inclusion therein by the Corporation and its managing
underwriter. All costs or expenses, incident to the registration, qualification or listing of such securities shall be paid by the Corporation, and the Corporation shall comply with all reasonable requests of Holder made in connection with the
registration, qualification, listing or sale of Registrable Shares. 
 
(b)    Each Holder of Warrants and Warrant Shares to be sold pursuant to any Registration Statement (each, a “Distributing Holder”) shall severally, and not jointly, indemnify and hold harmless
the Corporation, its officers and directors, each underwriter and each person, if any, who controls the Corporation and such underwriter, against any loss, claim, damage, expense or liability, joint or several, as incurred, to which any of 

 

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them may become subject under the Securities Act or any other statute or at common law, in so far as such loss, claim, damage, expense or
liability (or actions in respect thereof) arises out of or is based upon any untrue statement or alleged untrue statement of any material fact contained in any such Registration Statement, any preliminary prospectus or final prospectus contained
therein, or any amendment or supplement thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the
Corporation by such Distributing Holder specifically for use therein. Such Distributing Holder shall reimburse the Corporation, such underwriter and each such officer, director or controlling person for any legal or other expenses reasonably
incurred by any of them in connection with investigating or defending any such liability, as incurred. Notwithstanding the foregoing, such indemnity with respect to such preliminary prospectus or such final prospectus shall not inure to the benefit
of the Corporation, its officers or directors, or such underwriter (or such controlling person of the Corporation or the underwriter) if the person asserting any such loss, claim, damage, expense or liability purchased the securities that are the
subject thereof and did not receive a copy of the final prospectus (or the final prospectus as then amended, revised or supplemented) at or prior to the time such furnishing is required by the Securities Act in any case where any such untrue
statement or omission of a material fact contained in the preliminary prospectus was corrected in the final prospectus (or, if contained in the final prospectus, was subsequently corrected by amendment, revision or supplement). 
 
(c)    In connection with any public
registration of this Corporation’s securities, the Holder (and any transferee of Holder) agrees, upon the request of the Corporation or the underwriter(s) managing such underwritten offering of the Corporation’s securities, not to sell,
make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of this Warrant, any of the shares of Common Stock issuable upon exercise of this Warrant or any other securities of the Corporation heretofore or hereafter
acquired by Holder (other than those included in the registration) without the prior written consent of the Corporation and such underwriter(s), as the case may be, for a period of time not to exceed one hundred eighty (180) days from the effective
date of the registration. Upon request by the Corporation, Holder (and any transferee of Holder) agrees to enter into any further agreement in writing in a form reasonably satisfactory to the Corporation and such underwriter(s). The Corporation may
impose stop-transfer instructions with respect to the securities subject to the foregoing restrictions until the end of said 180-day period. Any shares issued upon exercise of this Warrant shall bear an appropriate legend referencing this lock-up
provision. 
 
6.    Adjustments.  The Exercise Price and Exercise Shares purchaseable hereunder are subject to adjustment form time to time as follows: 
 
6.1    Recapitalizations,
Reorganizations, etc.  In the event of changes in the outstanding Common Stock of the Corporation by reason of stock dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares, separations,
reorganizations, liquidations, or the like, the number and class of shares or other property available under the Warrant in the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the
same aggregate Exercise Price, the total number, class, and kind of shares or other property as the Holder would have owned had the Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the event
requiring adjustment; provided, however, that such adjustment shall not be made with respect to, and this Warrant shall terminate if not exercised prior to, the events set forth in Section 8 below. The form of this Warrant need not be changed
because of any adjustment in the number of Exercise Shares subject to this Warrant. Upon any adjustment pursuant to this Section 6.1, the Corporation shall give written notice thereof, by first class mail postage prepaid, addressed to the registered
Holder of this Warrant at the address of such Holder as shown on the books of the Corporation. The notice shall be signed by the Corporation’s’ chief financial officer and shall state the Exercise Price resulting from such adjustment and
number, class and kind of shares or other property purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. 
 
7.    Fractional
Shares.  No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) issuable upon exercise of 

 

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this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share. If,
after aggregation, the exercise would result in the issuance of a fractional share, the Corporation shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting
from multiplying the then current fair market value of an Exercise Share by such fraction. 
 
8.    Early Termination.  In the event of, at any time during the Exercise Period, the consolidation or merger of the Corporation with or into another corporation
in which the Corporation is not the surviving entity or in which the stockholders of the Corporation do not own at least 51% of the voting power of the surviving entity (other than a merger solely to effect a reincorporation of the Corporation into
another state), or the sale or other disposition of all or substantially all the properties and assets of the Corporation in its entirety to any other person, the Corporation shall provide to the Holder twenty (20) days advance written notice of
such consolidation, merger or sale or other disposition of the Corporation’s assets, and of this Warrant shall terminate unless exercised prior to the date of the occurrence of such consolidation, merger or sale or other disposition of the
Corporation’s assets. 
 
9.    No Stockholder Rights.  This Warrant in and of itself (prior to the exercise of rights hereunder) shall not entitle the Holder to any voting rights or other rights as a shareholder of the
Corporation. 
 
10.    Transfer of Warrant.  Subject to applicable laws, the restriction on transfer set forth on the first page of this Warrant, this Warrant and all rights hereunder are transferable, by the
Holder in person or by duly authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder. The transferee shall sign an investment representation letter in form and substance
reasonably satisfactory to the Corporation. 
 
11.    Lost, Stolen, Mutilated or Destroyed Warrant.  If this Warrant is lost, stolen, mutilated or destroyed, the Corporation may, on such terms as to indemnity or otherwise as it may reasonably
impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original
contractual obligation of the Corporation, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone. 
 
12.    Notices, etc.  All notices and other communications required or
permitted hereunder shall be in writing and shall be sent by telex, telegram, express mail or other form of rapid communications, if possible, and if not then such notice or communication shall be mailed by first-class mail, postage prepaid,
addressed in each case to the party entitled thereto at the following addresses: (a) if to the Corporation, to American Technology Corporation, Attention: President, 13114 Evening Creek Drive South, San Diego, California 92128 and (b) if to the
Holder, Sunrise Capital, Inc., 8617 Canyon View Drive, Las Vegas, NV 89117 or at such other address as one party may furnish to the other in writing. Notice shall be deemed effective on the date dispatched if by personal delivery, telecopy, telex or
telegram, two days after mailing if by express mail, or three days after mailing if by first-class mail. 
 
13.    Acceptance.  Receipt of this Warrant by the Holder shall constitute acceptance of and
agreement to all of the terms and conditions contained herein. 
 
14.    Amendment.  Any term of this Warrant may be amended with the written consent of the Corporation and the holders of Warrants representing a majority in interest of the then outstanding
Exercise Shares issuable upon exercise of any outstanding Warrant which was issued in connection with the Notes. Any amendment effected in accordance with this Section 14 shall be binding upon each holder of the Warrants. 
 
15.    Governing
Law.  This Warrant and all rights, obligations and liabilities hereunder shall be governed by the laws of the State of California. 
 

6 

IN WITNESS WHEREOF, the Corporation has caused this Warrant to be executed by its duly
authorized officer as of September 30, 2002. 
 

	 American Technology Corporation

	
	 By
	 	 /s/    ELWOOD G.
NORRIS

	 	

 
Accepted:

 
/s/    JAMES
BARNES 

Sunrise Capital, Inc. 
 

7 

 
NOTICE OF
EXERCISE 
 
TO: American Technology Corporation 
 
(1)     The undersigned hereby elects to
purchase              shares of the Common Stock of American Technology Corporation (the “Corporation”) pursuant to the terms of the attached Warrant, and tenders herewith
payment of the exercise price in full, together with all applicable transfer taxes, if any. 
 
The undersigned hereby elects to purchase              shares of the Common Stock of American Technology Corporation. (the
“Corporation”) pursuant to the terms of the net exercise provisions set forth in Section 2.1 of the attached Warrant, and shall tender payment of all applicable transfer taxes, if any. 
 
(2)    Please issue a certificate or
certificates representing said shares of Common Stock in the name of: 
 

(Name) 
 

 

(Address)

 
(3)    The undersigned
represents that (i) the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present
intention of distributing or reselling such shares; (ii) the undersigned is aware of the Corporation’s business affairs and financial condition, has read and reviewed the Corporation’s Form 10-K Annual Report for the latest fiscal year,
and the Form 10-Q Quarterly Reports for the latest fiscal quarters and all other reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, and has acquired sufficient information about the
Corporation to reach an informed and knowledgeable decision regarding its investment in the Corporation; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters
that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned’s own interests; (iv) the undersigned understands that the shares of Common Stock issuable upon exercise of this Warrant have
not been registered under the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption from the registration provisions of the Securities Act, which exemption depends upon, among other things, the bona
fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Securities Act, they must be held indefinitely unless subsequently registered under the Securities Act or an exemption from
such registration is available; (v) the undersigned is aware that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the
shares for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information to the public about the Corporation and (vi) the undersigned agrees not to make any disposition of all or
any part of the aforesaid shares of Common Stock unless and until there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said registration
statement, or the undersigned has provided the Corporation with an opinion of counsel reasonably satisfactory to the Corporation, stating that such registration is not required. 
 

	
 (Date)
	 	
 (Signature)
	 	 
	
	
 (Print name)
	 	 	 	 

 

8 

Exhibit 4.4 
 
ASSIGNMENT FORM 
 
(To assign the foregoing Warrant, execute this form 
and supply required information. Do not use this 
form to purchase shares.)

 
FOR VALUE RECEIVED, the foregoing Warrant and
all rights evidenced thereby are hereby assigned to 
 
 

	 Name:
	  	  

	  	 
	 	  	 (Please Print)
	  	 
	
	 Address:
	  	  

	  	 
	 	  	 (Please Print)
	  	 
	
	 Dated:
	  	  

	  	 
	
	 Holder’s Signature:
	  	  
  

	  	 
	
	 Holder’s Address:
	  	  
  

	  	 

 
NOTE: The signature to
this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should
provide proper evidence of authority to assign the foregoing Warrant. 
 

9

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