Document:

exv10w2

EXHIBIT 10.2

     EXECUTION COPY

EXCHANGE AGREEMENT

     EXCHANGE AGREEMENT, dated September 4, 2008 (this “Agreement”), is among LCC International,
Inc., a Delaware corporation (the “Company”), the Investors listed on the signature pages hereto
(collectively, the “Investors”) and the Guarantors (as defined below).

WITNESSETH:

     WHEREAS, the Investors currently hold shares of the Company’s Series A Convertible Preferred
Stock, par value $0.01 per share (the “Series A Preferred Stock”) as set forth on Schedule
1 attached hereto, convertible into the Company’s Class A Common Stock, par value $0.01 per
share (the “Common Stock”); and

     WHEREAS, the Company and the Investors are party to that certain Registration Rights
Agreement, dated as of April 19, 2007, as amended (the “Registration Rights Agreement”), pursuant
to which, among other things, the Company agreed to register the shares of Common Stock into which
the Preferred Stock is convertible with the Securities and Exchange Commission (the “SEC”) for
resale pursuant to the Securities Act of 1933, as amended (the “Act”); and

     WHEREAS, the Company and Bank of America, N.A. (“Lender”) are party to that certain Amended
and Restated Credit Agreement, dated as of May 29, 2007, as amended (the “Credit Agreement”); and

     WHEREAS, Lender has agreed to provide a new $9,000,000 term loan tranche (the “Tranche”) of
the existing Credit Agreement ranking pari passu with the current obligations under the Credit
Agreement in exchange for a limited guaranty (the “Guaranty”) by affiliates of the Investors (the
“Guarantors”) in an amount up to $9,000,000 and a deposit of cash by the Investors as collateral
for the Guaranty in the amount of $9,000,000 (the “Deposit”), which amount of cash will be pledged
to Lender; and

     WHEREAS, as an incentive for the Investors to cause the Guarantors to provide the Guaranty and
the Deposit for the benefit of the Company, the Company will, among other things, issue certain
warrants to the Guarantors and exchange the Investors’ existing Series A Preferred Stock specified
on Schedule 1 attached hereto for shares of the Company’s Series B Convertible Preferred
Stock, par value $0.01 per share (the “Series B Preferred Stock”) in the amount or amounts
specified on Schedule 1 attached hereto, all on the terms and subject to the conditions
provided herein.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, and intending to be
legally bound, the parties hereto agree as follows:

 

 

     Section 1. Exchange. At the Closing (as defined below), the Company shall exchange the
existing Series A Preferred Stock specified on Schedule 1 attached hereto owned by each
Investor for shares of the Series B Preferred Stock in the amount or amounts specified on
Schedule 1 attached hereto, such Series B Preferred Stock to have the relative rights,
preferences and designations set forth in Exhibit B attached hereto (the “Series B
Certificate of Designations”). In accordance with the terms of the Series B Certificate of
Designations, the Series B Preferred Stock shall be convertible into or otherwise exchangeable for
Common Stock of the Company to the extent specified therein. The Company shall file a
contemporaneous amendment and restatement of the Certificate of Designations, Preferences and
Rights of Series A Convertible Preferred Stock (the “Amended and Restated Series A Certificate of
Designations”) in the form attached hereto as Exhibit A to make the Series A Preferred
Stock rank pari passu with the Series B Preferred Stock and effect certain other amendments to the
terms of such Series A Preferred Stock.

     Section 2. Warrants. Contemporaneously with the execution of the Guaranty by the Guarantors
and the delivery thereof to the Lender and the provision of the Deposit to the Lender, the Company
shall issue to each Guarantor a warrant to purchase shares of the Company’s Series C Preferred
Stock, par value $0.01 (the “Series C Preferred Stock”) in the form attached hereto as Exhibit
D (each, a “Warrant”), and in the amount as set forth on Schedule 1 attached hereto.
The exercise price per share for such Warrant shall be as set forth in the Warrant and on the terms
and subject to the conditions set forth therein. The Series C Preferred Stock shall have the
rights, preferences and designations set forth in the Certificate of Designations, Preferences and
Rights of Series C Preferred Stock (the “Series C Certificate of Designations,” together with the
Amended and Restated Series A Certificate of Designations and the Series B Certificate of
Designations, the “Certificate of Designations”) in the form attached hereto as Exhibit C.

     Section 3. Additional Agreements.

     (a) On the date hereof, the Company shall notify Nasdaq that it is voluntarily delisting its
Common Stock from The Nasdaq Global Market exchange, and shall thereafter take any and all actions
required to accomplish such delisting as promptly as practicable, and in any event by no later than
September 30, 2008;

     (b) On or prior to the Closing, the Company shall have duly filed the Certificate of
Designations with the Secretary of State of the State of Delaware;

     (c) The Company shall take any and all actions necessary or desirable on its part to complete
the exchange of Series A Preferred Stock for Common Stock described in Section 8(a)(vi);

     (d) The Company shall take any and all actions necessary or desirable on its part to enter
into the amendment to the Credit Agreement described in Section 8(a)(vii);

     (e) The Company shall cause its counsel to deliver the legal opinion required pursuant to
Section 8(a)(x);

 

 

     (f) The Investors shall take any and all actions necessary or desirable on their part to cause
the Guarantors to deliver the Guaranty to the Lender and to provide the Deposit to the Lender; and

     (g) The Investors shall, in their capacity as holders of Series A Preferred Stock, consent to
the amendments set forth in the Amended and Restated Series A Certificate of Designations.

     (h) The Investors shall, in their capacity as holders of Common Stock and Series A Preferred
Stock, consent to any amendments to the Company’s Restated Certificate of Incorporation required to
authorize additional shares of Common Stock in order to allow any existing holders of Series A
Preferred Stock to convert their shares into Common Stock.

     Section 4. Registration Rights.

     (a) Effective at the Closing, the Registration Rights Agreement shall be amended as follows:

          (i) Section 1 shall be amended to include the following definitions:

               “Exchange Agreement’ means the Exchange Agreement, dated as of September 4, 2008,
among the Company and the Investors.”

               “Series A Preferred Stock’ means the Series A Convertible Preferred Stock, par value
$0.01 per share, issued pursuant to the terms of the Exchange and Settlement Agreement.”

               “Series B Preferred Stock’ means the Series B Convertible Preferred Stock, par value
$0.01 per share, issued pursuant to the terms of the Exchange Agreement.”

          (ii) The definition of “Preferred Stock” shall be deleted in its entirety and replaced to read
as follows:

               “Preferred Stock’ shall mean the Series A Preferred Stock and the Series B Stock,
collectively or separately as the context may require.”

     (b) Except as expressly modified hereby, the Registration Rights Agreement shall remain in
full force and effect.

 

 

     Section 5. Exchange and Settlement Agreement. Each of the Investors hereby acknowledges and
agrees that effective as of Closing, it shall continue to comply with Section 10 of the Exchange
and Settlement Agreement (as defined in the Registration Rights Agreement), as if the shares of
Series B Preferred Stock were Shares (as such term is defined in the Exchange and Settlement
Agreement).

     Section 6. Company Representations. The Company hereby represents and warrants to each of
the Investors and Guarantors as follows:

     (a) The Company is duly organized and validly existing under the laws of the State of Delaware
and has full power and authority to execute and deliver this Agreement and to perform its
obligations hereunder, all of which have been duly authorized by all requisite corporate action
except for those approvals of stockholders which are contemplated by this Agreement, which shall
have been obtained prior to Closing. This Agreement has been duly authorized, executed and
delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms.

     (b) No notice to, filing with, or authorization, registration, consent or approval of any
governmental authority or other person is necessary for the execution, delivery or performance of
this Agreement or the consummation of the transactions contemplated hereby or thereby by the
Company, except for filing the Certificate of Designations with the Secretary of State of the State
of Delaware, submitting notices and filings in connection with the delisting of the Company’s
Common Stock from The Nasdaq Global Market exchange and customary post-closing filings required
pursuant to applicable securities laws which will be made in the ordinary course.

     (c) The shares of Series B Preferred Stock to be issued hereunder have been duly and validly
authorized and, when issued pursuant to this Agreement, will be validly issued, fully paid and
nonassessable, and shall be free and clear of all Encumbrances (other than those created by the
Investors) and will be entitled to the relative rights, powers and preferences set forth in the
Series B Certificate of Designations. The Common Stock issuable upon the due conversion or other
exchange of the Series B Preferred Stock in accordance with the Series B Certificate of
Designations, will, when issued, be validly issued, fully paid and nonassessable, and shall be free
and clear of all Encumbrances (other than those created by the Investors).

     (d) The Warrants to be issued hereunder have been duly and validly authorized and, will
constitute, when executed and delivered, the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally. Upon the exercise of the Warrants and payment of the
exercise price therefor, all in accordance with the terms therein, the shares of Series C Stock
issuable upon such exercise shall be validly issued, fully paid and nonassessable, and shall be
free and clear of all Encumbrances (other than those created by the Investors) and will be entitled
to the relative rights, powers and preferences set forth in the Series C Certificate of
Designations.

 

 

     Section 7. Investor and Guarantor Representations. Each of the Investors and Guarantors
hereby, severally and not jointly, represents and warrants to the Company (as to itself only) as
follows:

     (a) It is duly organized and validly existing under the laws of its jurisdiction of formation
and has full power and authority to execute and deliver this Agreement and to perform its
obligations hereunder, all of which have been duly authorized by all requisite corporate,
partnership or limited liability company action, as applicable. This Agreement has been duly
authorized, executed and delivered by it and constitutes its valid and binding agreement,
enforceable against it in accordance with its terms.

     (b) No notice to, filing with, or authorization, registration, consent or approval of any
governmental authority or other person is necessary for the execution, delivery or performance of
this Agreement or the consummation of the transactions contemplated hereby or thereby by it.

     (c) It is the legal owner of the shares of Series A Preferred Stock listed on Schedule
1 attached hereto as owned by it, free and clear of all Encumbrances except those created
pursuant to the Registration Rights Agreement and those imposed generally by applicable securities
laws. It has the absolute and unrestricted right, power and capacity to exchange the shares of
Series A Preferred Stock as contemplated hereby free and clear of any Encumbrances (except for
restrictions imposed generally by applicable securities laws).

     (d) It has received from the Company all necessary information relating to the Company and its
business and has had a reasonable opportunity to ask questions of and receive answers from officers
and representatives of the Company concerning its financial condition and results of operations and
the transaction to which this Agreement relates, and any such questions have been answered to its
satisfaction. It has had the opportunity to review all publicly available records and filings and
all other documents concerning the Company that it considers necessary or appropriate to an
investment decision. It has conducted its own due diligence on the Company and the transaction to
which this Agreement relates and has made its own investment decisions based upon its own judgment,
due diligence and advice from such advisers as it has deemed necessary and not upon any view
expressed by or on behalf of the Company. It has consulted with its own legal, regulatory, tax,
business, investment, financial and accounting advisers in connection herewith to the extent it has
deemed necessary. Such Investor acknowledges that it can bear the economic risk and complete loss
of its investment in the shares of Series B Preferred Stock being acquired hereunder and has such
knowledge and experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment contemplated hereby.

     (e) It understands that the Company is in default of covenants on its senior debt and other
obligations, and is not able to pay all of its obligations as they become due. It acknowledges
that the Company has made no representation that the transaction contemplated by this Agreement
will lead to the satisfaction or waiver of all of the Company’s defaults, or that the Company will
be able to pay all of its obligations as they become due after the date of the transaction
contemplated by this Agreement.

 

 

     (f) It is an “accredited investor” as such term is defined in Rule 501 of Regulation D
promulgated under the Act. It is acquiring the Warrants and shares of Series B Preferred Stock
hereunder for its own account for investment purposes only and not with a view to, or for the
resale in connection with, any “distribution” thereof in violation of the Act. It understands that
the Warrants, the shares of Series C Preferred Stock issuable thereunder and the shares of Series B
Preferred Stock issuable hereunder have not been registered under the Act in reliance upon a
specific exemption therefrom, which exemption depends upon, among other things, the bona fide
nature of the Investor’s investment intent as expressed herein. It further understands that such
securities may not be transferred unless subsequently registered under the Act and qualified under
any applicable state securities laws, or unless exemptions from registration and qualification are
otherwise available. It is aware of the provisions of Rule 144, promulgated under the Act.

     Section 8. Conditions to Closing; Termination.

     (a) The obligations of each of the Investors hereunder are subject to the fulfillment to such
Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which
may be waived by it (as to itself only):

          (i) The representations and warranties made by the Company in Section 6 hereof shall be true
and correct in all material respects. The Company shall have performed in all material respects
all obligations and covenants herein required to be performed by it as of the Closing Date.

          (ii) The Company shall have obtained any and all consents, permits, approvals, registrations
and waivers necessary or appropriate for consummation of the transactions contemplated by this
Agreement, including but not limited to the delisting of the Company’s Common Stock from The Nasdaq
Global Market exchange, all of which shall be in full force and effect.

          (iii) The Certificate of Designations shall have been filed with the Secretary of State of
Delaware and shall have become effective.

          (iv) The Company shall have delivered to each Investor one or more certificates representing
the shares of Series B Preferred Stock acquired by such Investor hereunder, registered in such
names as the Investor may have requested.

          (v) The Company shall have delivered to each Guarantor one or more warrant certificates
representing the Warrant or Warrants acquired by such Guarantor hereunder, registered in such names
as the Guarantor may have requested.

          (vi) The Company and the Lender shall have entered into an amendment to the Credit Agreement,
which, among other things, provides a waiver and forbearance of certain defaults under the Credit
Agreement, a consent to the transactions contemplated herein and for the establishment of the
Tranche, in form and substance reasonably acceptable to the Investors and the Lender shall
contemporaneously with the Closing disburse the balance of proceeds from

 

 

the Tranche, after deduction of certain amounts set forth in a settlement statement provided by
Lender and agreed to by the Company.

          (vii) No judgment, writ, order, injunction, award or decree of or by any court, or judge,
justice or magistrate or any order of or by any governmental authority, shall have been issued, and
no action or proceeding shall have been instituted by any governmental authority, enjoining or
preventing the consummation of the transactions contemplated hereby.

          (viii) The Company shall have satisfied its obligations under the letter agreement with the
Guarantors of even date herewith regarding the appointment of two additional directors to the Board
designated by the Guarantors.

          (ix) The Company shall have caused its legal counsel to deliver to the Investors a legal
opinion in form and substance reasonably acceptable to the Investors with respect to the Series B
Preferred Stock, the Warrants and the Series C Preferred Stock.

     (b) The obligations of the Company hereunder are subject to the fulfillment to the Company’s
satisfaction, on or prior to the Closing Date, of the following conditions, any of which may be
waived by it:

          (i) The representations and warranties made by the Investors and Guarantors in Section 7
hereof shall be true and correct in all material respects on the Closing Date. The Investors and
Guarantors shall have performed in all material respects all obligations and covenants herein
required to be performed by them as of the Closing Date.

          (ii) The Investors shall have delivered to the Company the certificates representing the
shares of Series A Preferred Stock to be exchanged hereunder, in each case accompanied by such
executed stock powers or other transfer instruments reasonably requested by the Company.

          (iii) The Guarantors shall have delivered to Lender, with a copy to the Company, an executed
copy of the form of Guaranty attached hereto as Exhibit C and shall have provided the
Deposit to the Lender in accordance with the Guaranty.

          (iv) The Company shall have obtained the written consent of the holders of a majority of the
Series A Preferred Stock consenting to the issuance of the Series B Preferred Stock, the amendment
to the terms of the Series A Preferred Stock and the amendment to the Registration Rights
Agreement, as contemplated herein.

          (v) The Company shall have received (1) an executed copy from Lender of an amendment to the
Credit Agreement, which, among other things, provides a waiver and forbearance of certain defaults
under the Credit Agreement, a consent to the transactions contemplated herein and for the
establishment of the Tranche and (2) a disbursement from Lender of the balance of proceeds from the
Tranche, after deduction of certain amounts set forth in a settlement statement provided by Lender
and agreed to by the Company.

 

 

     (c) The obligations of the Company, on the one hand, and the Investors, on the other hand, to
effect the Closing shall terminate as follows:

          (i) Upon the mutual written consent of the Company and the Investors;

          (ii) By the Company if any of the conditions set forth in Section 8(b) shall have become
incapable of fulfillment, and shall not have been waived by the Company; or

          (iii) By an Investor (with respect to itself only) if any of the conditions set forth in
Section 8(a) shall have become incapable of fulfillment, and shall not have been waived by the
Investor;

provided, however, that, except in the case of clause (i) above, the party seeking to terminate its
obligation to effect the Closing shall not then be in breach of any of its representations,
warranties, covenants or agreements contained in this Agreement or the other documents contemplated
hereby if such breach has resulted in the circumstances giving rise to such party’s seeking to
terminate its obligation to effect the Closing.

     (d) In the event of termination by the Company or any Investor of its obligations to effect
the Closing pursuant to this Section 8, written notice thereof shall forthwith be given to the
other Investors and the other Investors shall have the right to terminate their obligations to
effect the Closing upon written notice to the Company and the other Investors.

     Section 9. Closing. The closing of this Agreement (the “Closing”) shall take place at the
offices of Pillsbury Winthrop Shaw Pittman LLP, 2300 N Street, NW, Washington DC 20037, after the
conditions to Closing set forth herein have been satisfied or waived, to the extent permitted by
applicable law or at such other location and on such other date as the Company and the Investors
shall mutually agree (the “Closing Date”). As used herein, “Business Day” means a day, other than
a Saturday, Sunday or legal holiday, on which commercial banks in New York City are open for the
general transaction of business.

     Section 10. Further Assurances. Subject to the terms and conditions herein provided, each of
the parties hereto shall take, or cause to be taken, all action, and to do, or cause to be done,
all things reasonably necessary, proper or advisable under applicable laws and regulations to
consummate and make effective the transactions contemplated by this Agreement. In the event that
at any time hereafter any further action is necessary to carry out the purposes of this Agreement,
the parties hereto shall take all such action without any further consideration therefor.

     Section 11. Successors and Assigns. This Agreement may not be assigned by a party hereto
without the prior written consent of the other parties hereto. The provisions of this Agreement
shall inure to the benefit of and be binding upon the respective permitted successors and assigns
of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

 

 

     Section 12. Counterparts; Faxes; Titles and Subtitles. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. This Agreement may also be executed via facsimile, which
shall be deemed an original. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

     Section 13 Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii)
if given by telex or telecopier, then such notice shall be deemed given upon receipt of
confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed
given upon receipt and (iv) if given by an internationally recognized overnight air courier, then
such notice shall be deemed given one Business Day after delivery to such carrier. All notices
shall be addressed to the party to be notified at the address as follows, or at such other address
as such party may designate by written notice to the other party:

If to the Company:

LCC International, Inc.

7900 West Park Drive, Suite 315-A

Mclean, Virginia 22101

Attention: General Counsel

Tel: (703) 873-2000

Fax: (703) 873-2100

With a copy to:

Pillsbury Winthrop Shaw Pittman LLP

2300 N Street NW

Washington, D.C. 20037

Attention: Robert B. Robbins

Tel: (202) 663-8136

Fax: (202) 663-8007

               If to the Investors or the Guarantors to the addresses set forth on Schedule 1
attached hereto.

     Section 14. Expenses. The parties hereto shall pay their own costs and expenses in
connection herewith except that the Company shall pay the reasonable attorneys’ fees and expenses
of the Investors. Such expenses shall be paid not later than the Closing.

     Section 15. Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a

 

 

particular instance and either retroactively or prospectively), only with the written consent of
the Company and the Investors.

     Section 16. Publicity. No public release or announcement concerning the transactions
contemplated hereby shall be issued by the Company or the Investors without the prior consent of
the Company (in the case of a release or announcement by the Investors) or the Investors (in the
case of a release or announcement by the Company) (which consents shall not be unreasonably
withheld), except that the Company may issue a press release describing the terms of this
Agreement. Notwithstanding the foregoing, the Investors acknowledge that the Company shall be
permitted to file a Current Report on Form 8-K to report the transactions contemplated by the
Agreement if the Company determines that such filing is necessary or advisable to comply with its
reporting obligations under applicable securities laws.

     Section 17. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof but shall
be interpreted as if it were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which renders any
provision hereof prohibited or unenforceable in any respect.

     Section 18. Entire Agreement. This Agreement, including the Exhibits, constitutes the entire
agreement among the parties hereof with respect to the subject matter hereof and thereof and
supersede all prior agreements and understandings, both oral and written, between the parties with
respect to the subject matter hereof and thereof.

     Section 19. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of New York
without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York
County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the
transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably
consents to the jurisdiction of any such court in any such suit, action or proceeding and to the
laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of
venue of any such suit, action or proceeding brought in such courts and irrevocably waives any
claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

 

 

     Section 20. No Strict Construction. Each of the parties hereto acknowledge that this
Agreement has been prepared jointly by the parties hereto, and shall not be construed against any
party.

[signature pages follow]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 
	 	LCC INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Louis Salamone, Jr.
 	 
	 	 	Name:  	Louis Salamone, Jr. 	 
	 	 	Title:  	Executive Vice President and
Chief Financial Officer 	 
	 
	 	INVESTORS:

 	 
	 	/s/ Lloyd I. Miller, III
 	 
	 	Lloyd I. Miller, III 	 
	 	 	 
	 
	 	 MILFAM II, L.P.
 	 
	 	By: Milfam LLC, its General Partner
 	 
	 	 	 
	 	By:  	                        /s/ Lloyd I. Miller, III
 	 
	 	 	Name:  	Lloyd I. Miller, III 	 
	 	 	Title:  	Manager 	 
	 
	 	TRUST A-4 — LLOYD I. MILLER

 	 
	 	By: PNC Bank, National Association, as Trustee
 	 
	 	 	 
	 	By:  	                        /s/ Lloyd I. Miller
 	 
	 	 	Name:  	Lloyd I. Miller, III 	 
	 	 	Title:  	Investment Advisor 	 
	 
	 	RILEY INVESTMENT PARTNERS MASTER FUND, L.P.

 	 
	 	By: Riley Investment Management LLC, its General

       Partner
 	 
	 	 	 
	 	By:  	/s/ Bryant Riley	 
	 	 	Name:  	Bryant Riley	 
	 	 	Title:  	Managing Member	 
	 

Signature Page to Exchange Agreement

 

 

	 	 	 	 	 
	 	GUARANTORS:

MILFAM GUARANTOR, LLC

 	 
	 	By:  	/s/ Lloyd I. Miller, III
 	 
	 	 	Name:  	Lloyd I. Miller, III 	 
	 	 	Title:  	President 	 
	 
	 	BR INVESTCO, LLC

 	 
	 	By:  	/s/ Bryant Riley	 
	 	 	Name:  	Bryant Riley	 
	 	 	Title:  	Manager	 
	 

Signature Page to Exchange Agreement

 

 

Schedule 1

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	Number of	 	 
	 	 	shares of	 	shares of	 	 
	 	 	Series A	 	Series B	 	 
	 	 	Preferred	 	Preferred	 	Number of
	Investor / Guarantor	 	Stock	 	Stock	 	Warrant Shares
	Lloyd I. Miller, III

4550 Gordon Drive

Naples, Florida
34102
	 	 	447,761.25	 	 	 	447,761.25	 	 	 	0	 
	Milfam II, L.P.

4550 Gordon Drive

Naples, Florida
34102
	 	 	447,761.25	 	 	 	447,761.25	 	 	 	0	 
	Trust A-4 — Lloyd
I. Miller

4550 Gordon Drive

Naples, Florida
34102
	 	 	447,761.25	 	 	 	447,761.25	 	 	 	0	 
	Riley Investment 

Partners Master Fund, L.P.

11100 Santa Monica

Blvd., Suite 800

Los Angeles,

California 90025
	 	 	1,287,882.00	 	 	 	1,287,882.00	 	 	 	0	 
	Riley Investment 

Partners Master Fund, L.P.

11100 Santa Monica

Blvd., Suite 800

Los Angeles,

California 90025
	 	 	83,954.25	 	 	 	83,954.25	 	 	 	0	 
	Milfam Guarantor,
LLC

4550 Gordon Drive

Naples, Florida
34102
	 	 	0	 	 	 	0	 	 	 	66,890.901	 
	BR Investco, LLC

11100 Santa Monica

Blvd., Suite 800

Los Angeles,

California 90025
	 	 	0	 	 	 	0	 	 	 	66,890.901	 

 

 

Exhibit A

Amended and Restated Series A Certificate of Designations

 

 

Exhibit B

Series B Certificate of Designations

 

 

Exhibit C

Series C Certificate of Designations

 

 

Exhibit D

Form of Warrantexv10w3

EXHIBIT 10.3

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE LAWS OF ANY
STATE. THEY MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER SUCH ACT OR
AN EXEMPTION FROM REGISTRATION IS AVAILABLE. THE SHARES ISSUABLE UPON EXERCISE OF THESE SECURITIES
MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF BY THE HOLDER EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT FILED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND IN
COMPLIANCE WITH APPLICABLE SECURITIES LAWS OF ANY STATE WITH RESPECT THERETO OR IN ACCORDANCE WITH
AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER THAT AN EXEMPTION FROM SUCH
REGISTRATION IS AVAILABLE.

LCC INTERNATIONAL, INC.

WARRANT CERTIFICATE

Warrant to Purchase

____________ Shares of Series C Preferred Stock

Date of Issue: ____________

          This warrant certificate (“Warrant Certificate”) certifies that for value received
                                        ,                                         ,
or registered successors or assigns (the “Holder”) is
the owner of the warrant specified above (the “Warrant”), which entitles the Holder thereof to
purchase, at any time after the sooner of following to occur (i) 30 days after the Date of Issue or
(ii) upon the filing of the Certificate of Designations (hereinafter defined) with the Delaware
Secretary of State and on or before the Expiration Date (hereinafter defined), up to ____________
fully paid and non-assessable shares of Series C Preferred Stock, $0.01 par value (“Series C
Stock”), of LCC International, Inc., a Delaware corporation (the “Company”), at a purchase price of
$____________ per share of Series C Stock in lawful money of the United States of America in cash or by
certified or cashier’s check or a combination of cash and certified or cashier’s check, subject to
adjustment as hereinafter provided. Each share of Series C Stock shall have the rights,
preferences and designations set forth in the Certificate of Designations, Preferences and Rights
of Series C Preferred Stock (the “Certificate of Designations”) in the form attached hereto as
Exhibit C and shall correspond to 100 shares of the Company’s Class A Common Stock, $0.01
par value (“Common Stock”), except that such shares of Series C Preferred Stock shall have no
voting rights with respect to the election of directors of the Company.

1. Warrant; Exercise Price

     This
Warrant shall entitle the Holder to purchase up to ____________ shares of Series C Stock of
the Company and the purchase price payable upon exercise of the Warrant shall initially be $____________
per share of Series C Stock, subject to adjustment as hereinafter provided (the

 

 

“Exercise Price”). The Exercise Price and number of shares of Series C Stock issuable upon
exercise of this Warrant are subject to adjustment as provided in Section 6.

2. Exercise; Expiration Date

     2.1 This Warrant is exercisable, at the option of the Holder, at any time or times after the
sooner of the following to occur (a) 30 days after the Date of Issue or (b) upon the filing of the
Certificate of Designations with the Delaware Secretary of State and on or before the Expiration
Date, upon surrender of this Warrant Certificate to the Company together with a duly completed
Notice of Exercise, in the form attached hereto as Exhibit A, and payment of an amount
equal to the Exercise Price times the number of shares of Series C Stock to be acquired. Payment
of the Exercise Price for the Warrant Shares (as defined in Section 3.3) shall be by wire
transfer or cashier’s check drawn on a United States bank or pursuant to the terms of Section
7. In the case of exercise of the Warrant for less than all the Warrant Shares represented by
this Warrant Certificate, the Company shall cancel the Warrant Certificate upon the surrender
thereof and shall promptly execute and deliver a new Warrant Certificate for the balance of such
Warrant Shares.

     2.2
The term “Expiration Date” shall mean 5:00 p.m. New York time on ____________ or if
such date shall in the State of New York be a holiday or a day on which banks are authorized to
close, then 5:00 p.m. New York time the next following date which in the State of New York is not a
holiday or a day on which banks are authorized to close.

     2.3 Issuance of certificates for Warrant Shares shall be made without charge to the Holder for
any issue or transfer tax or other incidental expense in respect of the issuance of such
certificate, all of which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be directed by the
Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a
name other than the name of the Holder, the Company may require, as a condition thereto, the
payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. Upon receipt
by the Company of this Warrant and such Notice of Exercise, together with proper payment of the
Exercise Price, the Holder shall be deemed to be the holder of record of the Warrant Shares,
notwithstanding that the stock transfer books of the Company shall then be closed or that
certificates representing such Warrant Shares shall not then be actually delivered to the Holder.

3. Registration and Transfer on Company Books

     3.1 The Company shall maintain books for the registration and transfer of the Warrants and the
registration and transfer of the shares of Series C Stock issued upon exercise of the Warrants.

     3.2 Prior to due presentment for registration of transfer of this Warrant Certificate, or the
shares of Series C Stock issued upon exercise of the Warrants, the Company may deem and treat the
registered Holder as the absolute owner thereof.

     3.3 (a) Neither this Warrant nor the shares of Series C Stock issuable upon exercise hereof
(the “Warrant Shares”) have been registered under the Securities Act of 1933, as amended (the
“Act”). The Company will not transfer this Warrant or transfer the Warrant Shares

-2-

 

unless (i) there is an effective registration covering such Warrant or Warrant Shares, as the
case may be, under the Act, (ii) it first receives a letter from an attorney, reasonably acceptable
to the Company’s board of directors (the “Board of Directors”) or its agents, the reasonable fees
of which shall be paid by the Company, stating that in the opinion of the attorney the proposed
transfer is exempt from registration under the Act, or (iii) the transfer is made pursuant to Rule
144 under the Act. Subject to the foregoing, this Warrant Certificate, the Warrant represented
hereby, and the Warrant Shares, may be sold, assigned or otherwise transferred voluntarily by the
Holder to any third party. The Company shall register upon its books any permitted transfer of a
Warrant Certificate, upon surrender of same to the Company with a written instrument of transfer
duly executed by the registered Holder or by a duly authorized attorney. Upon any such
registration of transfer, new Warrant Certificate(s) shall be issued to the transferee(s) and the
surrendered Warrant Certificate shall be canceled by the Company. A Warrant Certificate may also
be exchanged, at the option of the Holder, for new Warrant Certificates representing in the
aggregate the number of Warrant Shares evidenced by the Warrant Certificate surrendered.

          (b) The Holder of this Warrant, by acceptance hereof, agrees and acknowledges that this
Warrant, and the Warrant Shares are being acquired for investment and that such Holder will not
offer, sell or otherwise dispose of this Warrant, or any Warrant Shares except under circumstances
which will not result in a violation of the Act or any applicable state securities laws. Upon
exercise of this Warrant, unless the shares being acquired are registered under the Act or an
exemption from such registration is available, the Holder hereof shall confirm in writing that the
shares of Series C Stock so purchased are being acquired for investment and not with a view toward
distribution or resale in violation of the Act and shall confirm such other matters related thereto
as may be reasonably requested by the Company. This Warrant and all Warrant Shares (unless
registered under the Act) shall be stamped or imprinted with a legend in substantially the
following form:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD
OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER SUCH ACT OR AN EXEMPTION FROM
REGISTRATION IS AVAILABLE. THE SHARES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY NOT BE SOLD,
TRANSFERRED, OR OTHERWISE DISPOSED OF BY THE HOLDER EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT FILED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND IN COMPLIANCE WITH APPLICABLE
SECURITIES LAWS OF ANY STATE WITH RESPECT THERETO OR IN ACCORDANCE WITH AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER THAT AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE.

               (1) Said legend shall be removed by the Company, upon the request of the Holder, at such time
as the restrictions on the transfer of the applicable security shall have terminated.

4. Reservation of Shares

     4.1 The Company covenants that it will at all times reserve and keep available out of its
authorized Series C Stock, solely for the purpose of issue upon exercise of the Warrant, such

-3-

 

number of shares of Series C Stock as shall then be issuable upon exercise of the entire
Warrant. The Company covenants that all such shares of Series C Stock shall be duly and validly
issued and, upon payment for such shares as set forth herein, fully paid and non-assessable and
free from all taxes, liens and charges with respect to the issue thereof.

     4.2 The Company shall not by any action, including, without limitation, amending 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 express terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms. Without limiting the generality
of the foregoing, the Company will (a) take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares
upon the exercise of this Warrant and (b) use reasonable best efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof
as may be necessary to enable the Company to perform its obligations under this Warrant. The
Company shall not take any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price unless the Company shall
obtain all such authorizations or consents for such adjustment as may be necessary from any public
regulatory body or bodies having jurisdiction over the Company.

5. Loss or Mutilation

     Upon receipt by the Company of reasonable evidence of the ownership of and the loss, theft,
destruction or mutilation of any Warrant Certificate and, in the case of loss, theft or
destruction, of indemnity reasonably satisfactory to the Company, or, in the case of mutilation,
upon surrender and cancellation of the mutilated Warrant Certificate, the Company shall execute and
deliver in lieu thereof a new Warrant Certificate representing the number of Warrant Shares
evidenced by the lost, stolen, destroyed or mutilated Warrant Certificate.

6. Adjustments of Exercise Price and Shares

     6.1 If on the first trading day that is two (2) years after the Date of Issue the Market Price
Per Share (as defined in and determined pursuant to Section 8.2) is less than the then
current Exercise Price as of the Closing Date, then the Exercise Price shall be reduced to be 120%
of the then current Market Price Per Share, subject to any subsequent adjustments to the Exercise
Price pursuant to this Section 6.

     6.2 In the event of changes in the outstanding Common Stock of the Company by reason of stock
dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares,
separations, reorganizations, liquidations, consolidation, acquisition of the Company (whether
through merger or acquisition of substantially all the assets or stock of the Company), or the
like, the number and class of shares available under the Warrant in the aggregate and the Exercise
Price shall be correspondingly adjusted (as if each share of Series C Stock were convertible into
100 shares of Common Stock) 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 (as if each share of Series C Stock were convertible into 100 shares of Common Stock)
had the Warrant been exercised prior to the event

-4-

 

and had the Holder continued to hold such shares until the event requiring adjustment. The
form of this Warrant need not be changed because of any adjustment in the number of Warrant Shares
subject to this Warrant or the Exercise Price provided herein.

     6.3 If at any time or from time to time the holders of all of the shares of Common Stock of
the Company (or the holders of all of the shares of stock or other securities at the time
receivable upon the exercise of this Warrant) shall, as a class, have received or become entitled
to receive, without payment therefor:

(a) Common Stock or any shares of stock or other securities which are at any time directly
or indirectly convertible into or exchangeable for Common Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or
other distribution (other than a dividend or distribution covered in Section 6.2
above),

(b) any cash paid or payable otherwise than as a cash dividend; or

(c) Common Stock or additional stock or other securities or property (including cash) by way
of spinoff, split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock pursuant to Section 6.2 above),

then and in each such case, the Holder hereof will, upon the exercise of this Warrant, be entitled
to receive, in addition to the number of Warrant Shares receivable thereupon, and without payment
of any additional consideration therefor, the amount of stock and other securities and property
(including cash in the cases referred to in clauses (ii) and (iii) above and as if each share of
Series C Stock were convertible into 100 shares of Common Stock) which such Holder would hold on
the date of such exercise had he been the holder of record of such Common Stock as of the date on
which holders of Common Stock received or became entitled to receive such shares or all other
additional stock and other securities and property.

     6.4 Whenever the number of Warrant Shares purchasable upon the exercise of the Warrant or the
Exercise Price of such Warrant Shares is adjusted, as herein provided, the Company shall mail to
the Holder, at the address of the Holder shown on the books of the Company, a notice of such
adjustment or adjustments, prepared and signed by the Chief Financial Officer or Secretary of the
Company, which sets forth the number of Warrant Shares purchasable upon the exercise of each
Warrant and the Exercise Price of such Warrant Shares after such adjustment, a brief statement of
the facts requiring such adjustment and the computation by which such adjustment was made.

7. Conversion 

     7.1 In lieu of exercise of any portion of the Warrant as provided in Section 2.1
hereof, the Warrants represented by this Warrant Certificate (or any portion thereof) may, at the
election of the Holder, be converted into the nearest whole number of shares of Series C Stock as
is determined according to the following formula:

	 	 	 	 	 
	     X =

	 	  B — A  	 	 
	 

	 	Y

	 	 

-5-

 

	 	 	 	 	 
	Where:

	 	X  =
	 	the number of shares of Series C Stock that shall be issued to Holder
	 
	 	 	 	 
	 

	 	Y  =
	 	the Market Price Per Share of one Warrant Share
	 
	 	 	 	 
	 

	 	A  =
	 	the aggregate warrant price of the specified number of
converted Warrant Shares immediately prior to the exercise of the conversion
right (i.e., the number of converted Warrant Shares multiplied by the
Exercise Price)
	 
	 	 	 	 
	 

	 	B  =
	 	the aggregate fair market value of the specified number of
converted Warrant Shares (i.e., the number of converted Warrant Shares
multiplied by the Market Price Per Share of one Warrant Share)

     7.2 The conversion rights provided under this Section 7 may be exercised in whole or
in part and at any time and from time to time while any Warrants remain outstanding. In order to
exercise the conversion privilege, the Holder shall surrender to the Company, at its offices, this
Warrant Certificate accompanied by a duly completed Notice of Conversion in the form attached
hereto as Exhibit B. The Warrant (or so much thereof as shall have been surrendered for
conversion) shall be deemed to have been converted immediately prior to the close of business on
the day of surrender of such Warrant Certificate for conversion in accordance with the foregoing
provisions. As promptly as practicable on or after the conversion date, the Company shall issue
and shall deliver to the Holder (i) a certificate or certificates representing the number of shares
of Series C Stock to which the Holder shall be entitled as a result of the conversion, and (ii) if
the Warrant Certificate is being converted in part only, a new certificate in principal amount
equal to the unconverted portion of the Warrant Certificate.

8. Fractional Shares and Warrants; Determination of Market Price Per Share

     8.1 Anything contained herein to the contrary notwithstanding, the Company shall not be
required to issue any fraction of a share of Series C Stock in connection with the exercise of
Warrants. Warrants may not be exercised in such number as would result (except for the provisions
of this paragraph) in the issuance of a fraction of a share of Series C Stock unless the Holder is
exercising the entire Warrant then owned by the Holder. In such event, the Company shall, upon the
exercise of Warrant, issue to the Holder the largest aggregate whole number of shares of Series C
Stock called for thereby upon receipt of the Exercise Price for the entire Warrant and pay a sum in
cash equal to the remaining fraction of a share of Series C Stock, multiplied by its Market Price
Per Share (as determined pursuant to Section 8.2 below) as of the last business day
preceding the date on which the Warrants are presented for exercise.

     8.2 As used herein, the “Market Price Per Share” as of a particular date (the “Valuation
Date”), shall mean 100 multiplied by one of the following, as applicable: (a) if the Common Stock
is then listed on the Nasdaq Global Market or the Nasdaq Capital Market (“Nasdaq”) or another
national stock exchange, the closing sale price of one share of Common Stock on such exchange on
the last Trading Day prior to the Valuation Date; (b) if the Common Stock is then quoted on the
National Association of Securities Dealers, Inc. OTC Bulletin Board (the “Bulletin Board”) or such
similar quotation system or association, the closing sale price of one share of Common Stock on the
Bulletin Board or such other quotation system or association on the last Trading Day prior to the
Valuation Date or, if no such closing sale price is available, the average of the high bid and the
low asked price quoted thereon on the last trading day prior to

-6-

 

the Valuation Date; (c) if such security is then included in the “pink sheets,” the closing
sale price of one share of Common Stock on the “pink sheets” on the last Trading Day prior to the
Valuation Date or, if no such closing sale price is available, the average of the high bid and the
low ask price quoted on the “pink sheets” as of the end of the last Trading Day prior to the
Valuation Date; or (d) if the Common Stock is not then listed on a national stock exchange or
quoted on the Bulletin Board, the “pink sheets” or such other quotation system or association, the
fair market value of one share of Common Stock as of the Valuation Date, as determined in good
faith by the Board of Directors of the Company and the Holde. If the Common Stock is not then
listed on a national securities exchange or quoted on the Bulletin Board, the “pink sheets” or
other quotation system or association, the Board of Directors of the Company shall respond
promptly, in writing, to an inquiry by the Holder as to the fair market value of a share of Common
Stock as determined by the Board of Directors of the Company. In the event that the Board of
Directors of the Company and the Holders of a majority of the Warrants then outstanding are unable
to agree upon the fair market value in respect of subpart (d) of this paragraph, the Company and
the Holders of a majority of the Warrants then outstanding shall jointly select an appraiser, who
is experienced in such matters. The decision of such appraiser shall be final and conclusive, and
the cost of such appraiser shall be borne equally by the Company and the Holders.

9. Miscellaneous

     9.1 Definitional Provisions.

          (a) All terms defined in this Warrant shall have the defined meanings when used in any
certificates, reports or other documents made or delivered pursuant hereto or thereto, unless the
context otherwise requires.

          (b) Terms defined in the singular shall have a comparable meaning when used in the plural, and
vice versa.

          (c) All accounting terms shall have a meaning determined in accordance with GAAP.

          (d) The words “hereof,” “herein” and “hereunder,” and words of similar import, when used in
this Warrant shall refer to this Warrant as a whole (including any exhibits and schedules hereto)
and not to any particular provision of this Warrant.

     9.2 Notices. All notices, requests, demands, claims, and other communications
hereunder shall be in writing and shall be delivered by certified or registered mail (first class
postage pre-paid), guaranteed overnight delivery, or facsimile transmission if such transmission is
confirmed by delivery by certified or registered mail (first class postage pre-paid) or guaranteed
overnight delivery, to the following addresses and telecopy numbers (or to such other addresses or
telecopy numbers which such party shall subsequently designate in writing to the other party):

if to the Company:

-7-

 

LCC International, Inc.

7900 Westpark Drive, Suite A-315

McLean, VA 22102

Attention: Chief Executive Officer or Chief Financial Officer

Telecopy: 703.873.2100

with a copy to:

Pillsbury Winthrop Shaw Pittman LLP

2300 N Street, NW

Washington, DC 20037

Attention: Robert B. Robbins, Esq.

Telecopy: 202.663.8007

if to the Holder:

[Name of Holder]

[Street Address]

[City, State ZIP]

     Each such notice or other communication shall for all purposes of this Warrant be treated as
effective or having been given when delivered if delivered by hand, by messenger or by courier, or
if sent by facsimile, upon confirmation of receipt.

     9.3 Entire Agreement. This Warrant contains the entire understanding of the parties
in respect of its subject matter and supersede all prior agreements and understandings between the
parties with respect to such subject matter.

     9.4 Expenses. Except as otherwise provided in this Warrant, the parties shall pay
their own fees and expenses, including their own counsel fees, incurred in connection with this
Agreement or any transaction contemplated hereby. Any sales tax, stamp duty, deed transfer or
other tax (except taxes based on the income of the Investor) arising out of the issuance of the
Warrant or the Warrant Shares (but not with respect to subsequent transfers) by the Company to the
Holder and consummation of the transactions contemplated by this Warrant shall be paid by the
Company.

     9.5 Amendment; Waiver. This Agreement may not be modified, amended, supplemented,
canceled or discharged, except by written instrument executed by both parties. No failure to
exercise, and no delay in exercising, any right, power or privilege under this Agreement shall
operate as a waiver, nor shall any single or partial exercise of any right, power or privilege
hereunder preclude the exercise of any other right, power or privilege. No waiver of any breach of
any provision shall be deemed to be a waiver of any preceding or succeeding breach of the same or
any other provision, nor shall any waiver be implied from any course of dealing between the
parties. No extension of time for performance of any obligations or other acts hereunder or under
any other agreement shall be deemed to be an extension of the time for performance of any other
obligations or any other acts. The rights and remedies of the parties

-8-

 

under this Agreement are in addition to all other rights and remedies, at law or equity, that
they may have against each other.

     9.6 Headings. The headings contained in this Warrant are for convenience of reference
only and are not to be given any legal effect and shall not affect the meaning or interpretation of
this Warrant.

     9.7 Severability. The parties stipulate that the terms and provisions of this Warrant
are fair and reasonable as of the date of this Warrant Certificate. However, any provision of this
Warrant shall be determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Warrant
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
If, moreover, any of those provisions shall for any reason be determined by a court of competent
jurisdiction to be unenforceable because excessively broad or vague as to duration, activity or
subject, it shall be construed by limiting, reducing or defining it, so as to be enforceable.

10. Governing Law

     This Warrant Certificate shall be governed by and construed in accordance with the laws of the
State of New York.

11. WAIVER OF JURY TRIAL.

     EACH OF COMPANY AND HOLDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS WARRANT CERTIFICATE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

[Signature Page Follows]

-9-

 

     IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed by its
officers thereunto duly authorized and its corporate seal to be
affixed hereon, as of this ____ day
of ____________.

	 	 	 	 	 
	 	LCC INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Attest:

 	 	 
	
 	 	 
	Name:  	 	 	 
	Title:  	 	 	 

Signature Page

Warrant Certificate

 

 

EXHIBIT A

NOTICE OF EXERCISE

	 	 	 	 	 
	     To:

	 	LCC International, Inc.	 	 
	 

	 	7900 Westpark Drive, Suite A-315
	 	_________, 20__
	 

	 	McLean, VA 22102	 	 
	 

	 	Attention: Chief Executive Officer or Chief Financial Officer	 	 
	 

	 	Telecopy: 703.873.2100	 	 

          The undersigned hereby irrevocably elects to purchase, pursuant to Section 2 of the
Warrant Certificate accompanying this Notice of Exercise, _________ Warrant Shares of the total
number of Warrant Shares owned by the undersigned pursuant to the accompanying Warrant Certificate,
and herewith makes payment of $_____ in payment of the Exercise Price of such shares in full.

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

          _____________________________________

          The Warrant Shares shall be delivered to the following:

          _____________________________________

          _____________________________________

          _____________________________________

	 	 	 	 	 
	 	Name of Holder

 	 
	 	
 	 
	 	Signature
 	 
	 	Address: 	 
	 	
 	 
	 	
 	 
	 	
 	 

 

 

	 	 	 	 	 

EXHIBIT B

                                        , 20     

NOTICE OF CONVERSION

     The undersigned hereby irrevocably elects to convert, pursuant to Section 7 of the
Warrant Certificate accompanying this Notice of Conversion, __________ Warrant Shares of the total
number of Warrant Shares owned by the undersigned pursuant to the accompanying Warrant Certificate
into shares of Series C Stock of the Company (the “Shares”).

     The number of Shares to be received by the undersigned shall be calculated in accordance with
the provisions of Section 7.1 of the accompanying Warrant Certificate.

          _____________________________________

          The Warrant Shares shall be delivered to the following:

          _____________________________________

          _____________________________________

          _____________________________________

	 	 	 	 	 
	 	Name of Holder

 	 
	 	
 	 
	 	Signature
 	 
	 	Address: 	 
	 	
 	 
	 	
 	 

 

 

	 	 	 	 	 

EXHIBIT C

FORM OF

CERTIFICATE OF DESIGNATIONS OF

SERIES C PREFERRED STOCK

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