Document:

atec-ex41_236.htm

 

Exhibit 4.1

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR STATE SECURITIES LAWS AND NO TRANSFER OF THESE SECURITIES MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND THE RULES AND REGULATIONS THEREUNDER AND OF ALL APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS, OR (B) PURSUANT TO AN EXEMPTION THEREFROM UNDER SAID ACT AND ALL APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS WITH RESPECT TO WHICH THE COMPANY MAY, UPON REQUEST, REQUIRE A SATISFACTORY OPINION OF COUNSEL FOR THE HOLDER THAT SUCH TRANSFER IS EXEMPT FROM THE REQUIREMENTS OF THE ACT.  

amended and restated 

WARRANT TO PURCHASE COMMON STOCK
OF
Alphatec Holdings, Inc.

 

		
	
Warrant Shares: 1,327,434
	
November 4, 2020

 

THIS WARRANT CERTIFIES THAT, for value received, Patrick S. Miles (the “Holder”), or its assigns, is entitled to purchase up to 1,327,434 shares of Common Stock (the “Shares”) of Alphatec Holdings, Inc., a Delaware corporation (the “Company”) at an exercise price equal to $5.00 per Share (the “Exercise Price”), all on the terms and subject to the conditions and limitation as set forth herein.

	
I.
	
EXERCISE

Holder may exercise this Warrant in whole or in part, at any time and from time to time following June 28, 2018, in each case, by delivering a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 to the principal office of the Company and a check for the aggregate Exercise Price for the Shares being purchased.  Promptly after Holder exercises this Warrant, the Company shall deliver to Holder certificates for the Shares acquired, and, if this Warrant has not been fully exercised, a new Warrant representing the Shares not so acquired shall be delivered to Holder.  Subject to Article 4 and Section 5.2 below, the Company agrees that any Shares acquired by exercise of this Warrant in accordance with this Article 1 shall be deemed to be issued to the Holder as the record holder of such Shares as of the close of business on the date on which the Notice of Exercise shall have been delivered and payment made for the Exercise Price as aforesaid. 

Net Issue via Cashless Exercise.  In lieu of exercising this Warrant by delivering a check for the aggregate Exercise Price for the Shares being purchased, this Warrant may also be exercised, in whole or in part, by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Article 1 hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Article 1 hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, (y) the VWAP on the Trading Day immediately preceding the date the applicable Notice of Exercise is delivered or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter pursuant to Article 1 hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Article 1 hereof after the close of “regular trading hours” on such Trading Day;

(B) = the Exercise Price of this Warrant, as adjusted hereunder; and 

 

 

(X) = the number of Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

If Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Shares being issued may be tacked on to the holding period of this Warrant. The Company agrees not to take any position contrary to this provision.

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

The Holder may elect net issue via cashless exercise by delivering a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 to the principal office of the Company which affirmatively sets forth Holder’s election to elect net issue via cashless exercise. Notwithstanding anything herein to the contrary, on the termination date, as set forth in Article 3, this Warrant shall be automatically exercised via cashless exercise pursuant to this Article 1.

	
II.
	
ADJUSTMENTS TO THE SHARES

A.Split, Subdivision or Combination of Shares.  Upon any subdivision of the Shares, by split or otherwise, or combination of the Shares, the number of Shares issuable upon the exercise of this Warrant shall forthwith be proportionately increased, in the case of a subdivision, or proportionately decreased in the case of a combination, and the Exercise Price shall forthwith be proportionately decreased in the case of a subdivision, or proportionately increased in the case of a combination.

B.Reclassification, Merger, Exchange or Substitution.  Upon any reclassification, merger, exchange, substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise of this Warrant, the Holder shall be entitled to receive, upon exercise of this Warrant, the number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised immediately before such reclassification, merger, exchange, substitution, or other event.  The Company or its successor shall promptly issue to Holder a new Warrant for such new securities or other property.  The new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 

 

 

2 including, without limitation, adjustments to the Exercise Price and to the number of securities or property issuable upon exercise or conversion of the new Warrant.  The provisions of this Section 2.2 shall similarly apply to successive reclassifications, mergers, exchanges, substitutions, or other events.

C.Notice of Adjustments.  Whenever the number of Shares or Exercise Price is adjusted or there is any other adjustment of this Warrant as herein provided, the Company shall provide notice to the Holder of such adjustment or adjustments setting forth in reasonable detail the adjustments so made, a brief statement of the facts requiring such adjustment, and the computation by which such adjustment was made.

D.No Impairment.  The Company shall not, through a 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 under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this Article 2.  The Company shall at all times reserve and keep available out of the aggregate of its authorized but unissued Shares, free of preemptive rights, such number of its duly authorized Shares, or other stock or securities deliverable pursuant to this Article 2, as shall be sufficient to enable the Company at any time to fulfill all of its obligations under this Warrant.  The Company covenants that all Shares that may be delivered upon exercise of this Warrant, assuming full payment of the Exercise Price, shall upon delivery by the Company be duly authorized and validly issued, fully paid and nonassessable, free from all stamp taxes, liens and charges with respect to the issue or delivery thereof and otherwise free of all other security interests, encumbrances and claims of any nature whatsoever other than those created by Holder.

	
III.
	
DURATION

This Warrant shall expire and no longer be exercisable, and its provisions shall have no further force or effect upon the earlier of (a) the date which this Warrant has been exercised for the maximum amount of Shares available for issuance upon an exercise of this Warrant and (b) December 28, 2022.

	
IV.
	
TRANSFER

This Warrant (as if this Warrant were the Common Stock issuable upon the exercise hereof) and the Shares issued upon the exercise thereof may be transferred in whole or in part only in compliance with all applicable securities laws related to the transfer of this Warrant or the Shares issuable upon the exercise hereof.  Subject to such restrictions, the Company shall transfer all or portion of this Warrant from time to time upon the books to be maintained by the Company for that purpose, upon surrender hereof for transfer, properly endorsed or accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company, including, if required by the Company, an opinion of its counsel reasonably satisfactory to the Company to the effect that such transfer is exempt from the registration requirements of the Act, to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant shall be issued to the transferee for the portion of this Warrant so transferred (and, if applicable, a new Warrant shall be issued to the Holder for any portion not transferred) and the surrendered Warrant shall be canceled by the Company.

	
V.
	
holder representation

The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Shares or any part thereof in violation of the Act or any applicable state securities law, except pursuant to sales registered or exempted under the Act. The Holder acknowledges that the Shares acquired upon the exercise of this Warrant will have restrictions upon resale imposed by state and federal securities laws.

	
VI.
	
MISCELLANEOUS

A.No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company with respect to the Shares issuable upon exercise hereof prior to such exercise as set forth in Section 1.

B.Loss or Destruction of this Warrant.  Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) 

 

 

of indemnity reasonably satisfactory to the Company, and upon surrender of this Warrant, if mutilated, the Company will execute and deliver, without charge, a new Warrant of like tenor.

C.Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder. This Warrant also may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

D.Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder.

E.Ownership of this Warrant and Shares.  The Company may deem and treat the person in whose name this Warrant is registered as the holder and owner hereof (notwithstanding any notations of ownership or writing thereon made by anyone other than the Company) for all purposes.  

F.Notices.  Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Warrant shall be in writing and shall be deemed to have been duly given (a) when hand delivered to the other party; (b) when sent by email as set forth on the signature page hereto if sent between 8:00 a.m. and 5:00 p.m. recipient’s local time on a business day, or on the next business day if sent other than between 8:00 a.m. and 5:00 p.m. recipient’s local time on a business day; (c) three business days after deposit in the U.S. mail with first class or certified mail receipt requested postage prepaid and addressed to the other party as set forth on the signature page hereto; or (d) the next business day after deposit with a national overnight delivery service, postage prepaid, addressed to the parties as set forth on the signature page hereto with next business day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider.  A party may change or supplement the addresses applicable hereunder, or designate additional addresses, for purposes of this Section 6.6 by giving the other party written notice of the new address in the manner set forth above.

G.Binding Effects; Benefits.  This Warrant shall inure to the benefit of and shall be binding upon the Company and the Holder and their respective heirs, legal representatives, successors and permitted assigns; provided however, that neither this Warrant nor any rights or obligations hereunder shall be assigned by the Holder other than pursuant to a transfer permitted in accordance with Article 4.  Nothing in this Warrant, expressed or implied, is intended to or shall confer on any person other than the Company and the Holder, or their respective heirs, legal representatives, successors or permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Warrant.

H.Severability.  Any term or provision of this Warrant which is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the terms and provisions of this Warrant or affecting the validity or enforceability of any of the terms or provisions of this Warrant in any other jurisdiction.

I.Governing Law.  This Warrant shall be governed by and construed in accordance with the laws of the State of California.

J.Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

K.Further Assurances.  Each of the Company and the Holder shall do and perform all such further acts and things and execute and deliver all such other certificates, instruments and documents as the Company or the Holder may, at any time and from time to time, reasonably request in connection with the performance of any of the provisions of this Warrant.

 

 

IN WITNESS WHEREOF, Alphatec Holdings, Inc. has caused this Warrant to be executed by its officer thereunto duly authorized.

 

	
Alphatec Holdings, Inc.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Jeffrey G. Black

	
Name:
	
 
	
Jeffrey G. Black

	
Title:
	
 
	
Chief Financial Officer

	
 
	
 
	
 

	
Address:
	
 
	
 

	
 
	
 
	
 

	
Email:
	
 
	
 

	
 
	
 
	
 

 

 

 

 

 

APPENDIX 1

NOTICE OF EXERCISE

1.The undersigned hereby elects to purchase _____ shares of Common Stock of Alphatec Holdings, Inc. pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full.

2.Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below:

 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

3.The undersigned represents it is acquiring the shares of Common Stock solely for its own account and not as a nominee for any other party and not with a view toward the resale or distribution thereof except in compliance with applicable securities laws.

 

	
	
 

	
(Signature)

	
 

	
 

	
(Date)Exhibit 10.1

 

[FORM OF DIRECTORS AGREEMENT]

 

[Date] 

 

RE: Vertical Computer Systems, Inc./ Director’s Agreement

 

Dear __________,

 

On behalf of Vertical Computer Systems,
Inc., a Delaware corporation (the “Company”), I am pleased to offer you this agreement (the “Agreement”)
to engage you to serve as a director (“Director”) on the Board of Directors of the Company, effective on the date first
set forth above. The parties agree as follows:

 

1.           Services. Under your engagement as a Director of the Company, you will perform the following services: (a) carryout
and assume responsibilities of a director as required under Delaware law, the Company’s Articles of Incorporation, the Company’s
Amended and Restated By-Laws, the Company’s Code of Ethics, resolutions adopted by the directors or shareholders of the Company,
and such other regulations and policies adopted by the Company from time-to-time; (b) provide guidance setting overall objectives;
(c) review, discuss, and approve plans and programs of operation; (d) formulate general policies and offer advice and counsel;
(e) review management performance; (f) participate in the appointment and removal of officers of the Company; (g) participate in
disclosure of Company information in accordance with the securities regulations of the United States and elsewhere as applicable;
(h) review internal and external financial and disclosure controls and procedures; and (i) use best efforts to attend scheduled
meetings of the Company’s board of directors and shareholders.

 

2.           Term. The term of this Agreement will run from the date set forth above through the date the Company actually holds
its next annual shareholder meeting and will continue thereafter under the terms of any new director compensation arrangement,
provided that you continue to serve as a director after the next annual shareholder meeting.

 

3.           Compensation. In consideration for your services as a member of the Board of Directors, you will receive the following
compensation:

 

(a)          The Company shall pay you the sum of Three Thousand Dollars ($3,000) per month, adjusted pro-rata, which shall be paid within
15 days after the end of each month, provided that the Company has “Available Cash” to pay such fees. “Available
Cash” means all cash from the Company’s operations on hand or on deposit from time to time after the Company has raised
sufficient funds or has sufficient funds to meet the working capital requirement of the Company for the then current-month. If
the Company does not have sufficient “Available Cash” to pay the monthly fees, the fees will accrue without interest
for up to 90 days, at which time such fees will become due.

 

(b)          The Company shall also issue warrants to you as follows: (i) a 5-year warrant from the date set forth above to purchase
Five Hundred Thousand (500,000) shares of the Company’s common stock at a purchase price of $0.01 per share and (ii) a 5-year
warrant that will be issued on the date the Company actually holds its next annual shareholders meeting to purchase Two Hundred
Fifty-Thousand (250,000) shares of the Company’s common stock at a purchase price that is 85% of the 15-day average of the
closing per share price of the Company’s common stock for the 15 days preceding the actual date the Company holds its annual
shareholder meeting.

 

     

     

    

 

(c)          Except as expressly set forth in the agreement, you will receive no other compensation for your services as a member of
the Board of Directors of the Company. The Company acknowledges that in the event you provide other services on behalf of the Company
and its subsidiaries beyond the scope of your engagement as a Director hereunder, you will be entitled to receive additional compensation
as mutually agreed to between you and the Company for providing such services

 

4.           Expenses; Reimbursement. The Company shall reimburse you for reasonable travel and other expenses incurred in the
course of performing services hereunder.

 

5.           Confidentiality. You agree to execute the Company's standard Confidentiality and Standstill Agreement, a copy of
which is attached as Exhibit “A” and incorporated herein by this reference. In addition, you acknowledge that you have
received the Company's any Insider Trading Policies in effect from time to time and will abide by the Company’s strict policy
that prohibits any new officer, director, employee, consultant or advisor from using or bringing with him or her from any previous
employer any confidential information, trade secret, or proprietary materials or processes of such employer.

 

6.           Indemnification. The Company shall indemnify you in your capacity as a directors and/or officers for acts taken or
omitted to be taken on behalf of the Corporation to the full extent provided or permitted by the laws of the State of Delaware
from time to time in effect and the Company’s By-Laws, as amended from time to time. The Company agrees that, so long as
you shall continue to serve as an agent of the Company and thereafter so long as you shall be subject to any possible proceeding
by reason of the fact that you were an agent of the Company, the Company shall use reasonable efforts to obtain and maintain in
full force and effect directors’ and officers’ liability insurance (“D&O Insurance”) in reasonable
amounts from established and reputable insurers. You acknowledge that the Company had provided you a copy of the Company’s
D&O Insurance policy and confirm that such policy and coverage is currently acceptable to you. You and the Company acknowledge
that the Company will be evaluating additional terms to include under indemnity agreement in order to attract and retain all directors
and officers of the Company and its subsidiaries and that the terms of any such subsequent agreement entered into between you and
the Company will be incorporated into the terms of this Agreement attached as Exhibit B.

 

7.           Governing Law. The validity, interpretation, performance and enforcement of this Agreement shall be governed
by the laws of the State of Delaware without giving effect to principles of conflict of laws. Should any provision or paragraph
of this Agreement, or any clause hereof, be held to be invalid, illegal or unenforceable, in whole or in part, the remaining provisions,
paragraphs and clauses of this Agreement shall remain fully enforceable and binding on the parties.

 

8.           Waiver. No waiver of any term, provision or condition of the Agreement, whether by conduct or otherwise, in any one
or more instances, shall be deemed to be or be construed as a further or continuing waiver of any such term, provision or condition
or as a waiver of any other term, provision or condition of the Agreement.

 

9.           Entire Agreement. The Agreement (including any exhibits attached hereto) contains the entire agreement and understanding
of the parties with respect to the subject matter hereof, and merges and supersedes all prior agreements, discussions and writings
with respect thereto. No modification or alteration of the Agreement shall be effective unless made in writing and signed by both
you and the Company.

 

10.         Counterparts. This Agreement may be signed in two or more counterparts, each of which shall be deemed an original,
and all of which shall be deemed one instrument.

 

     

     

    

 

We look forward to working
together. Please indicate your acceptance by signing and returning the enclosed copy of this letter agreement and any attachments.

 

Best regards,

 

VERTICAL COMPUTER SYSTEMS INC.

 

	By:	 	 
	 	Luiz Valdetaro	 
	 	Chief Technology Officer	 

 

ACCEPTED AND AGREED:

 

	By:	 	 
	 	________________, an individual

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