Document:

EX-10.3

 Exhibit 10.3 

WARRANT CONVERSION AGREEMENT 

THIS WARRANT CONVERSION AGREEMENT (this “Agreement”) is entered into as of June     , 2015 by and
between LaserLock Technologies, Inc., a Nevada corporation (the “Company”), and [WARRANTHOLDER NAME] (the “Warrantholder”), with reference to the following facts: 

W I T N E S S E T H: 

WHEREAS, the Company issued one or more Warrants to Warrantholder to purchase from the Company up to [NUMBER WARRANTS] ([# WARRANTS]) fully
paid and nonassessable shares of the Company’s Common Stock, $0.001 par value per share (the “Common Stock”) at an exercise price of $X.XX per share, dated [ISSUE DATE] (the “Warrant”); and 

WHEREAS, the Company and Warrantholder desire to convert the outstanding and unexercised Warrants into shares of Company Common Stock on the
basis of a 1:1 ratio. 
 NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and agreements contained herein,
and other good and valuable consideration, the receipt, sufficiency and adequacy of which is hereby acknowledged, the parties hereby agree as follows: 
  

	 	1.	Conversion to Common Stock. Notwithstanding any term or provision contained in the Warrant to the contrary, effective upon the satisfaction of all of the conditions set forth in Article II of that certain Master
Acquisition Agreement, dated June [    ], 2015, attached hereto as Exhibit A (the “Effective Date”), the entire outstanding and unexercised portion of the Warrant shall be converted into shares of
Common Stock, at a conversion rate of one share of Common Stock for each of the outstanding and unexercised portion of the Warrants issuable on the exercise of the Warrant, which, for purposes of this Agreement, the Warrantholder and the Company
agree shall be equal to an aggregate of [NUMBER COMMON SHARES] ([# COMMON SHARES]) shares of Common Stock. Upon the Effective Date and return of the original Warrant as described below, the Company shall instruct its transfer agent to issue such
shares of Common Stock to the Warrantholder at the address on the signature page hereto. 

  

	 	2.	Return of Warrant; Release. Upon the Effective Date, the Warrant shall be deemed to be fully exercised, null and void and of no further force or effect and the Warrantholder shall have no rights thereunder. Upon
the execution of this Agreement, the Warrantholder shall return the original Warrant to the Company marked “CANCELLED,” to be held by the Company until the Effective Date. As of the Effective Date, Warrantholder hereby forever releases,
discharges, acquits and forever forgives Company and its shareholders, directors, officers, employees and agents from any and all claims, suits, actions, demands, liabilities and proceedings of every nature and description, known and unknown,
arising out of or pursuant to the Warrant. 

  

	 	3.	 Restricted Stock. The Common Stock to be issued hereunder has not been registered with the United States Securities and Exchange Commission or
with the securities regulatory authority of any state. The Common Stock is subject to restrictions imposed by federal and state securities laws and regulations on transferability and resale, and may not be

  
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transferred assigned or resold except as permitted under the Securities Act of 1933, as amended (the “Act”), and the applicable state securities laws, pursuant to registration
thereunder or exemption therefrom. 

  

	 	4.	Warrantholder Representations. The Company is issuing the Common Stock to the Warrantholder in reliance upon the following representations made by the Warrantholder: 

 

	 	(a)	Warrantholder is an “accredited investor” within the meanings set forth under Rule 501(a) of Regulation D of the Act (17 § C.F.R. § 230.501(a)). The Common Stock is being acquired by Warrantholder
for its own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof, and Warrantholder has no present intention of selling, granting any participation in or otherwise distributing the same

  

	 	(b)	Warrantholder: 

  

	 	(i)	has had, and continues to have, access to detailed information with respect to the business, financial condition, results of operations and prospects of the Company; 

 

	 	(ii)	has received or has been provided access to all material information concerning an investment in the Company; and 

  

	 	(iii)	has been given the opportunity to obtain any additional information or documents from, and to ask questions and receive answers of, the officers, directors and representatives of the Company to the extent necessary to
evaluate the merits and risks related to an investment in the Company represented by Common Stock. 

  

	 	(c)	As a result of Warrantholder’s study of the aforementioned information and Warrantholder’s prior overall experience in financial matters, and Warrantholder’s familiarity with the nature of businesses such
as the Company, Warrantholder is properly able to evaluate the capital structure of the Company, the business of the Company, and the risks inherent therein. 

  

	 	(d)	The Warrantholder is the beneficial owner of the Warrant free and clear of any liens, security interests, encumbrances or other like items and is conveying good title to the Warrant back to the Company. The
Warrantholder holds no other warrants or rights to acquire shares in the Company. 

  

	 	(e)	Warrantholder’s financial condition is such that Warrantholder can afford to bear the economic risk of holding the Common Stock, and to suffer a complete loss of Warrantholder’s investment in the Company
represented by the Common Stock. 

  

	 	(f)	Warrantholder’s principal residence is as set forth on the signature page hereto. 

  
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	 	5.	Miscellaneous. 

  

	 	(a)	This Agreement shall be construed and enforced in accordance with the laws of the State of Nevada. 

  

	 	(b)	This Agreement constitutes the entire agreement between the parties and supersedes all prior oral or written negotiations and agreements between the parties with respect to the subject matter hereof. No modification,
variation or amendment of this Agreement (including any exhibit hereto) shall be effective unless made in writing and signed by both parties. To the extent any terms of the Warrant are inconsistent with the provisions of this Agreement,
Warrantholder waives the application of such inconsistent provision and covenants and agrees that the terms of this Agreement shall control. 

  

	 	(c)	Each party to this Agreement hereby represents and warrants to the other party that it has had an opportunity to seek the advice of its own independent legal counsel with respect to the provisions of this Agreement and
that its decision to execute this Agreement is not based on any reliance upon the advice of any other party or its legal counsel. Each party represents and warrants to the other party that in executing this Agreement such party has completely read
this Agreement and that such party understands the terms of this Agreement and its significance. This Agreement shall be construed neutrally, without regard to the party responsible for its preparation. 

 

	 	(d)	Each party to this Agreement hereby represents and warrants to the other party that: 

  

	 	(i)	the execution, performance and delivery of this Agreement has been authorized by all necessary action by such party; 

  

	 	(ii)	the representative executing this Agreement on behalf of such party has been granted all necessary power and authority to act on behalf of such party with respect to the execution, performance and delivery of this
Agreement; and 

  

	 	(iii)	the representative executing this Agreement on behalf of such party is of legal age and capacity to enter into agreements which are fully binding and enforceable against such party. 

 

	 	(e)	This Agreement may be executed in any number of counterparts, all of which taken together shall constitute a single instrument. 

[SIGNATURES CONTAINED ON FOLLOWING PAGE.] 

  
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 IN WITNESS WHEREOF, the parties have executed this Warrant Conversion Agreement as of the date
set forth above. 
  

									
	COMPANY:				WARRANTHOLDER:
			
	LASERLOCK TECHNOLOGIES, INC.				[                                    
    ]
					
	By:		  
				By:		  

					
	Name:		Paul Donfried				Name:		  

					
	Title:		Chief Executive Officer				Title:		  

					
	Address:		 591 Cone Hill Road
 Richmond, MA
01254
				Address:		  

					
	Telephone:		(202) 400-3700, x120						  

					
							Telephone:		  

	Facsimile:		(413) 698-8396						
							Facsimile:		  

	E-Mail:		pdonfried@laserlocktech.com						
							E-Mail:		  

  
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 EXHIBIT A 

MASTER ACQUISITION AGREEMENTEX-10.4

 Exhibit 10.4 
  

 
 June 16, 2015 

Dear Paul: 
 LaserLock Technologies, Inc. (the
“Company”) is pleased to offer you (“you” and its correlatives) full-time employment as Chief Executive Officer. 

You agree to devote your full-time and best efforts to the business and interests of the Company and its affiliates, and to abide by and carry
out the Company’s policies and procedures from time to time in effect. 
 1. Compensation. You will be entitled to a base salary
computed at an annual rate of $200,000 (pro rated for partial years). All payments will be made net of all applicable withholding taxes and in accordance with the Company’s then-current payroll practices (currently, two times per month). In
addition, subject to approval by the Company’s Board of Directors, you will be awarded, on a one-time basis, 42,500,000 options (the “Options”) to purchase a total of 42,500,000 shares of common stock of the Company, par value
$0.01 (the “Option Shares”), vesting quarterly over 2 years, under the Company’s 2013 Comprehensive Incentive Compensation Plan Equity Incentive Plan. The Options will be evidenced by, and subject to the terms of, an Option
Agreement, a form of which is attached hereto as Exhibit A. In addition, subject to approval by the Company’s Board of Directors, you will be awarded, on a one-time basis, 25,500,000 restricted stock units (the “RSUs”)
related to the Company’s common stock, $0.01 par value per share (the “RSU Shares”), vesting over a two year period with one-half vesting on the one-year anniversary of commencing employment and one-eigth vesting ratably on a
quarterly basis thereafter, under the Company’s 2013 Comprehensive Incentive Compensation Plan. The RSUs will be evidenced by, and subject to the terms of, a Restricted Stock Unit Agreement, a form of which is attached hereto as Exhibit
B. In addition, on an annual basis, or such other period to be determined by the Company, you shall be entitled to be considered for a bonus. The size of such periodic bonus and the criterion for receipt of such periodic bonus shall be
determined by the Company. The Options and RSUs are subject to adjustment, as provided in the Plan, in the event of a stock split, reverse stock split or other events affecting the holders of Shares after the date hereof. Furthermore, should the
company affect a reverse stock split prior to the employee’s start date, the amount of Options and RSUs provided for in this offer letter should be adjusted to account for the reverse stock split. 

2. Employee Benefits. As a full-time employee, you will be eligible to participate in all benefit programs that are generally available
to the Company’s employees, including Company-subsidized medical, dental, and vision insurance coverage and, at your election, life insurance and/or long-term disability coverage. Additionally, you will be eligible to take up to four
(4) weeks of paid time off per year. 
  

							
	LASERLOCK TECHNOLOGIES, INC.				Telephone:		(202) 400-3700
	3112 M Street NW				Facsimile:		(202) 400-3701
	Washington, DC 20007						

 June 16, 2015 
 Page
2 of 3 
 3. Policies and Procedures. As an employee of the Company, you will be required to comply with all applicable state and
federal regulations, and internal compliance policies and procedures in effect from time to time. 
 4. Representations and
Warranties. You represent and warrant to the Company that (i) your agreement to the terms of this letter agreement and the performance of your duties and obligations contemplated hereunder will not violate or conflict with the provisions of
any other agreement, understanding or order to which you are a party or by which you are bound; (ii) you have never been suspended, censured, or otherwise subjected to any disciplinary action or other proceeding, and you have not been notified
that you are the subject of any investigation that could result in any such suspension, censor, or other disciplinary action, by any federal, state, or foreign governmental entity, by the attorney disciplinary authorities of any state, or by any
securities or commodity exchange or self-regulatory organization; and (iii) you know of nothing that could result in any determination by the finder of fact in any action or matter (whether civil, criminal, regulatory or otherwise) relating to
the circumstances of your employment with any previous employer(s) that would either: (A) adversely affect your ability to fully perform your duties as an employee of the Company in the capacities described herein, or (B) would by their
nature cause material harm to your reputation and good standing within the Company’s industry, or to the reputation of the Company or its affiliates. Any exceptions to the foregoing must be described in factual detail and attached to this
letter agreement. 
 5. Confidentiality, Non-Disclosure, and Non-Interference Agreement. As a condition of your employment with the
Company, you will be required to sign the attached Non-Disclosure and Non-Solicitation Agreement (“NDA”), which is hereby incorporated herein by reference. 

6. Employment at Will. You hereby acknowledge and agree that your employment with the Company is at will. This means that although we
hope your employment relationship with us will be long-term, either you or the Company may terminate this relationship with or without cause at any time and without any prior notice, in which case your obligations under the NDA will continue in full
force and effect as specified therein. Neither this letter nor any other communication should be construed as a contract of employment for a particular period of time. The nature of your employment relationship may not be changed, except by written
agreement. 
 7. Entire Agreement. This agreement and the NDA constitute your entire agreement with respect to matters set forth
herein and therein, and supersede any prior agreement(s) with respect thereto. Any changes or waiver of any of the terms of this agreement must be in writing signed by both you and the Company. The failure of the Company at any time to require
performance of any of your obligations under this agreement shall in no manner affect its right to enforce the same at a later date. No waiver by the Company of any condition, or of any breach, of this agreement shall be deemed to be or construed as
a further or continuing waiver of any such condition or breach. 

*        *        * 

 

 
 [Signature Page to Letter Agreement] 

Please confirm your agreement to the foregoing by signing and returning one copy of this agreement to the Company. 

If you have any questions, please feel free to contact us. We look forward to working with you. 

 

			
	Sincerely,
	
	LASERLOCK TECHNOLOGIES, INC.
		
	By:		  

			Claudio Ballard
			Director
		
	By:		  

			Jonathan Weinberger
			Director

  

	
	Accepted and agreed as of the date
	first written above:
	
	  

	PAUL DONFRIED

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