Document:

Common Stock Purchase Agreement

 Exhibit 10.30 
 COMMON STOCK PURCHASE 
 AGREEMENT 

Dated as of June 27, 2011 
 among 
 API TECHNOLOGIES CORP. 

and 

THE PURCHASERS LISTED ON EXHIBIT A 

 TABLE OF CONTENTS 

 

									
	 	  	Page	 
		
	 ARTICLE I Purchase and Sale of Common Stock
	  	 	1	  
				
		  	Section 1.1	  	Purchase Price and Closing	  	 	1	  
		  	Section 1.2	  	Delivery	  	 	2	  
		
	 ARTICLE II Representations and Warranties
	  	 	2	  
				
		  	Section 2.1	  	Representations and Warranties of the Company	  	 	2	  
		  	Section 2.2	  	Representations and Warranties of the Purchasers	  	 	5	  
		
	 ARTICLE III Covenants
	  	 	7	  
				
		  	Section 3.1	  	Delivery of Share Certificates	  	 	7	  
		  	Section 3.2	  	NASDAQ Listing	  	 	8	  
		  	Section 3.3	  	Independent Directors	  	 	8	  
		  	Section 3.4	  	Participation Rights	  	 	9	  
		
	 ARTICLE IV Conditions
	  	 	10	  
				
		  	Section 4.1	  	Conditions Precedent to the Obligation of the Company to Close and to Sell the Shares	  	 	10	  
		  	Section 4.2	  	Conditions Precedent to the Obligation of the Purchasers to Close and to Purchase the Shares	  	 	11	  
		
	 ARTICLE V Certificate Legend
	  	 	12	  
				
		  	Section 5.1	  	Legend	  	 	12	  
		
	 ARTICLE VI Termination
	  	 	13	  
				
		  	Section 6.1	  	Termination by Mutual Consent	  	 	13	  
		  	Section 6.2	  	Effect of Termination	  	 	13	  
		
	 ARTICLE VII Miscellaneous
	  	 	13	  
				
		  	Section 7.1	  	Fees and Expenses	  	 	13	  
		  	Section 7.2	  	Specific Enforcement; Consent to Jurisdiction	  	 	13	  
		  	Section 7.3	  	Entire Agreement; Amendment	  	 	14	  
		  	Section 7.4	  	Notices	  	 	14	  
		  	Section 7.5	  	Waivers	  	 	15	  
		  	Section 7.6	  	Headings	  	 	15	  
		  	Section 7.7	  	Successors and Assigns	  	 	15	  
		  	Section 7.8	  	No Third Party Beneficiaries	  	 	15	  
		  	Section 7.9	  	Governing Law	  	 	15	  
		  	Section 7.10	  	Survival	  	 	15	  
		  	Section 7.11	  	Counterparts	  	 	16	  
		  	Section 7.12	  	Publicity	  	 	16	  
		  	Section 7.13	  	Securities Law	  	 	16	  
		  	Section 7.14	  	Severability	  	 	16	  
		  	Section 7.15	  	Further Assurances	  	 	16	  
		  	Section 7.16	  	Independent Nature of Purchasers’ Obligations and Rights	  	 	16	  

  
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 Table of Contents 

(continued) 
  

							
	 	    	 	  	Page	 
			
	 EXHIBIT A
	    	LIST OF PURCHASERS	  	 	A-1	  
			
	 EXHIBIT B
	    	FORM OF REGISTRATION RIGHTS AGREEMENT	  	 	B-1	  

  
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 COMMON STOCK PURCHASE AGREEMENT 

This COMMON STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of June 27, 2011, is made by and among API
Technologies Corp., a Delaware corporation (the “Company”) and the entities and individuals listed on Exhibit A hereto (each, a “Purchaser” and collectively, the “Purchasers”). 

RECITALS 
 A. The Company
and the Purchasers are executing and delivering this Agreement in reliance upon the exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the
“Securities Act”), including Regulation D (“Regulation D”), as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act. 

B. The Purchasers wish to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, up to 4,791,958 shares (the
“Shares”) of common stock, par value $0.001 per share, of the Company (“Common Stock”). 
 C. Concurrently
with the execution and delivery of this Agreement, the Company is entering into a Registration Rights Agreement, substantially in the form attached hereto as Exhibit B (the “Registration Rights Agreement”) with the Purchasers
with respect to the Shares. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and
valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers agree as follows: 
 ARTICLE I 
 Purchase and Sale of Common Stock 

Section 1.1 Purchase Price and Closing. Upon the terms and subject to the conditions set forth herein, the Company agrees to
issue and sell to the Purchasers and, the Purchasers, severally but not jointly, agree to purchase that number of Shares at a price per Share equal to $6.50, in each case as set forth opposite such Purchaser’s name on Exhibit A hereto.
The aggregate purchase price payable by each Purchaser for the Shares that such Purchaser is hereby agreeing to purchase is set forth opposite such Purchaser’s name on Exhibit A hereto (the “Purchase Price”). The closing
of the purchase and sale of the Shares to be acquired from the Company under this Agreement (the “Closing”) shall take place at the offices of Wilson Sonsini Goodrich & Rosati, P.C., 650 Page Mill Road, Palo Alto,
California 94304 at 10:00 a.m., Pacific Time (i) on or before June 27, 2011, provided, that all of the conditions set forth in Article IV hereof and applicable to the Closing shall have been fulfilled or waived in accordance
herewith, or (ii) at such other time and place or on such date as the Purchasers purchasing a majority of the Shares hereunder and the Company may agree upon (the “Closing Date”). The entire Purchase Price payable by each
Purchaser pursuant hereto shall be paid by such Purchaser in cash, by wire transfer of immediately available funds at the Closing. 

 Section 1.2 Delivery. At the Closing, the Company shall issue to each Purchaser
certificate(s) representing the Shares in such number as is set forth opposite such Purchaser’s name on Exhibit A hereto against payment of the Purchase Price therefor by wire transfer of immediately available funds to an account
designated by the Company. At the Closing, each Purchaser and the Company shall execute and deliver this Agreement, the Registration Rights Agreement and the other documents set forth in Article IV. 

ARTICLE II 

Representations and Warranties 
 Section 2.1 Representations and Warranties of the Company. In order to induce the Purchasers to enter into this Agreement and to purchase the Shares, the Company hereby makes the following
representations and warranties to the Purchasers: 
 (a) Organization, Good Standing and Power. The Company is a
corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being
conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except for any
jurisdiction(s) (alone or in the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect. For the purposes of this Agreement, “Material Adverse Effect” means any adverse effect on the business,
operations, properties or financial condition of the Company which is material to the Company taken as a whole. The Company’s subsidiaries are listed on Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the year ended
May 31, 2010 and are the only subsidiaries, direct or indirect, of the Company. 
 (b) Authorization; Enforcement.
The Company has the requisite corporate power and authority to enter into and perform this Agreement, the Registration Rights Agreement and the other agreements and documents contemplated hereby and thereby and executed by the Company or to which
the Company is party (collectively, the “Transaction Documents”), and to issue and sell the Shares in accordance with the terms hereof. The execution, delivery and performance of the Transaction Documents by the Company and the
consummation by it of the transactions contemplated thereby have been duly and validly authorized by all necessary corporate action, and no further consent or authorization of the Company, its board of directors (the “Board”) or its
stockholders is required. Each of the Transaction Documents constitutes, or shall constitute when executed and delivered, a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) to
the extent that the indemnification provisions contained in the Registration Rights Agreement may be limited by applicable law and principles of public policy, (ii) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors’ rights generally, and (iii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies or by general
principles of equity. 

  
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 (c) Capitalization. The authorized capital stock of the Company as of the date of
this Agreement consists of 100,000,000 shares of Common Stock, of which 49,142,342 shares are issued and outstanding as of May 31, 2011 and one share of Special Voting Stock, $0.01 par value, which is authorized, issued and outstanding as of
May 31, 2011. All of the outstanding shares of Common Stock and Special Voting Stock have been duly and validly authorized. No shares of Common Stock or Special Voting Stock of the Company are entitled to preemptive rights. As of May 31,
2011, except (i) options to purchase 2,317,915 shares of Common Stock issued pursuant to the Company’s Amended and Restated 2006 Equity Incentive Plan (the “Plan”) and outstanding as of the date of this Agreement,
(ii) an additional 3,557,085 shares of Common Stock reserved for issuance pursuant to the Plan, (iii) options to purchase 10,418 shares of Common Stock that were not issued under the Plan, (iv) 955,362 shares underlying outstanding
warrants and (v) as set forth in the Transaction Documents, there are no outstanding options, warrants, scrip, rights to subscribe to, call or commitments of any character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company, and there are no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue additional shares of the capital stock of the Company or options, securities or
rights convertible into shares of capital stock of the Company. Except as set forth in the Transaction Documents, the Company is not a party to or bound by any agreement or understanding granting registration or anti-dilution rights to any person
with respect to any of its equity or debt securities. The Company has furnished or made available to the Purchasers true and correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (the
“Certificate”) and the Company’s Bylaws as in effect on the date hereof (the “Bylaws”). 

(d) Issuance of the Shares. The Shares to be issued at the Closing have been duly authorized by all necessary corporate action
and, when paid for or issued in accordance with the terms hereof, the Shares shall be validly issued and outstanding, fully paid and nonassessable and free and clear of all liens, encumbrances and rights of refusal of any kind (other than those
arising from the actions or inactions of the Purchasers themselves), and the holders shall be entitled to all rights accorded to a holder of Common Stock; provided, however, that the Shares may be subject to restriction on transfer
under state and federal securities laws. 
 (e) No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby do not and will not (i) violate any provision of the Certificate or Bylaws, (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which the Company is a party or by which the Company’s properties or assets are bound, (iii) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature on any property
or asset of the Company under any agreement or any commitment to which the Company is a party or by which the Company is bound or by which any of its properties or assets are bound, or (iv) result in a violation of any federal, state, local or
foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected, except, in all cases other
than violations pursuant to clause (i) above, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect. 

  
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 (f) Financial Statements. The consolidated financial statements and the related notes
of the Company and its subsidiaries included or incorporated by reference in the SEC Documents comply in all material respects with the applicable requirements of the Securities Act, the Exchange Act, and the rules and regulations of the SEC, as
applicable, and fairly present in all material respects the financial position, results of operations and cash flows of the Company and its subsidiaries as of the dates indicated and for the periods specified, subject, in the case of the unaudited
financial statements, to the absence of disclosures normally made in footnotes and to customary year-end adjustments that are not material. Such financial statements have been prepared in conformity with U.S. generally accepting accounting
principles applied on a consistent basis throughout the periods covered thereby (except as disclosed in the SEC Documents filed before the date of this Agreement), and the supporting schedules included or incorporated by reference in the SEC
Documents fairly present the information required to be stated therein. The other financial information included or incorporated by reference in the SEC Documents has been derived from the accounting records of the Company and its subsidiaries and
presents fairly or will present fairly the information shown thereby. 
 (g) Reporting Status. The Company is subject to
the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and has, in a timely manner, filed all documents that the Company was required to file thereunder during the twelve (12) months
prior to the Closing Date (the “SEC Documents”). The SEC Documents complied as to form in all material respects with the SEC’s requirements as of their respective filing dates, and the information contained therein as of the
date thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading,
except to the extent that information contained in any such document has been revised or superseded by a later filed SEC Document. 
 (h) Reporting Company; Form S-3. The Company is not an “ineligible issuer” (as defined in Rule 405 promulgated under the Securities Act) and is eligible to register the Shares
for resale by the Purchasers on a registration statement on Form S-3 under the Securities Act. Provided the Purchaser is not deemed to be an underwriter with respect to any shares, to the Company’s knowledge, there exist no facts or
circumstances (including without limitation any required approvals or waivers or any circumstances that may delay or prevent the obtaining of accountant’s consents) that reasonably could be expected to prohibit or delay the preparation and
filing of a registration statement on Form S-3 (the “Registration Statement”) that will be available for the resale of the Shares by the Purchasers. 
 (i) No Undisclosed Events or Circumstances. Since March 18, 2011, except as set forth in the SEC Documents, no event or circumstance has occurred or exists with respect to the Company or its
businesses, properties, operations or financial condition, which, under applicable federal securities law, rule or regulation, requires public disclosure or announcement by the Company but which has not been publicly so announced or disclosed.

  
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 (j) Securities Act of 1933. The Company has complied and will comply with all
applicable federal and state securities laws in connection with the offer, issuance and sale of the Shares hereunder. Neither the Company nor anyone acting on its behalf, directly or indirectly, has or will sell, offer to sell or solicit offers to
buy any of the Shares, or similar securities to, or solicit offers with respect thereto from, or enter into any preliminary conversations or negotiations relating thereto with, any person, or has taken or will take any action such that the issuance
and sale of any of the Shares are not exempt from the registration provisions of the Securities Act and applicable state securities laws. Neither the Company nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of any of the Shares. 
 (k) Governmental Approvals. Except for the filing of any notice prior or subsequent to the Closing that may be required under applicable state and/or federal securities laws (which if required,
shall be filed on a timely basis), no authorization, consent, approval, license, exemption of, filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality located in the United States is or
will be necessary for, or in connection with, the issuance or delivery of the Shares or for the performance by the Company of its obligations under the Transaction Documents. 
 (l) No Investment Company. Neither the Company nor any of its subsidiaries is or will be after giving effect to the transactions contemplated by the Purchase Agreement an “investment
company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 Section 2.2 Representations and Warranties of the Purchasers. Each of the Purchasers hereby makes the following representations and warranties to the Company with respect solely to itself and
not with respect to any other Purchaser: 
 (a) Organization and Standing of the Purchasers. If such Purchaser is an
entity, such Purchaser is a corporation, limited liability company or partnership duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization. 

(b) Authorization and Power. Such Purchaser has all requisite power and authority to execute and deliver the Transaction
Documents, to purchase the Shares and to carry out and perform its obligations under the terms of the Transaction Documents. All action on the part of such Purchaser necessary for the authorization, execution, delivery and performance of the
Transaction Documents, and the performance of all such Purchaser’s obligations under the Transaction Documents, has been taken or will be taken prior to the Closing. The Transaction Documents constitute, or shall constitute when executed and
delivered, valid and legally binding obligations of such Purchaser enforceable against such Purchaser in accordance with their terms, except: (i) to the extent that the indemnification provisions contained in the Registration Rights Agreement
may be limited by applicable law and principles of public policy, (ii) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
and (iii) as limited by laws 

  
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relating to the availability of specific performance, injunctive relief or other equitable remedies or by general principles of equity. No consent, approval, authorization, order, filing,
registration or qualification of or with any court, governmental authority or third person is required to be obtained by such Purchaser in connection with the execution and delivery of the Transaction Documents by such Purchaser or the performance
of such Purchaser’s obligations hereunder or thereunder. 
 (c) Acquisition for Investment. Such Purchaser is
purchasing the Shares solely for its own account, not as a nominee or agent, and for the purpose of investment and not with a view to or for resale in connection with the distribution thereof. Such Purchaser does not have a present intention to sell
any of the Shares, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of any of the Shares to or through any person or entity. Such Purchaser acknowledges that it (i) has such knowledge and
experience in financial and business matters such that such Purchaser is capable of evaluating the merits and risks of its investment in the Company and (ii) is able to bear the financial risks associated with an investment in the Company.

 (d) Rule 144. Such Purchaser understands that the Shares must be held indefinitely unless such Shares are registered
under the Securities Act or an exemption from registration is available. Such Purchaser acknowledges that it is familiar with the provisions of Rule 144 promulgated pursuant to the Securities Act (“Rule 144”), which permit resale of
shares purchased in a private placement subject to the satisfaction of certain conditions, which may include, among other things, the availability of certain current public information about the Company; the resale occurring not less than a
specified period after a party has purchased and paid for the security to be sold; the number of shares being sold during any three-month period not exceeding specified limitations; the sale being effected through a “brokers’
transaction,” a transaction directly with a “market maker” or a “riskless principal transaction” (as those terms are defined in the Securities Act or the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder); and the filing of a Form 144 notice, if applicable, and that such Purchaser has been advised that Rule 144 permits resales only under certain circumstances. Such Purchaser understands that to the extent that Rule
144 is not available, such Purchaser will be unable to sell any Shares without either registration under the Securities Act or the existence of another exemption from such registration requirement. Such Purchaser understands that, although Rule 144
is not exclusive, the SEC has expressed its opinion that persons proposing to sell restricted securities received in a private offering, other than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and the brokers who participate in the transactions do so at their own risk. 
 (e) General. Such Purchaser understands that the Shares are being offered and sold in reliance on a transactional exemption from the registration requirements of federal and state securities laws,
and the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the applicability of such exemptions and the
suitability of such Purchaser to acquire the Shares. Such Purchaser understands that no United States federal or state agency or any government or governmental agency has passed upon or made any recommendation or endorsement of the Shares.

  
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 (f) Opportunities for Additional Information. Such Purchaser acknowledges that such
Purchaser has had the opportunity to ask questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning the Transaction Documents, the exhibits and schedules attached hereto and thereto
and the transactions contemplated by the Transaction Documents, as well as the business, management, financial and other affairs of the Company, and to the extent deemed necessary in light of such Purchaser’s personal knowledge of the
Company’s affairs, such Purchaser has asked such questions and received answers to the full satisfaction of such Purchaser. Such Purchaser believes that it has received all the information such Purchaser considers necessary or appropriate for
deciding whether to purchase the Shares. Such Purchaser also acknowledges that it is relying solely on its own advisors and the representations, warranties, covenants, agreements and statements contained in the Purchase Agreement and in the other
Transaction Documents. 
 (g) No General Solicitation. Such Purchaser acknowledges that the Shares were not offered to
such Purchaser by means of any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any
newspaper, magazine, or similar media, or broadcast over television or radio, or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing means of communications. 

(h) Accredited Investor. Such Purchaser is an accredited investor (as defined in Rule 501 of Regulation D), and such Purchaser has
such experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the Shares. Such Purchaser acknowledges that an investment in the Securities is speculative and involves a high degree of
risk. 
 ARTICLE III 
 Covenants 
 The Company covenants with each Purchaser as follows:

 Section 3.1 Delivery of Share Certificates. At Closing or as soon thereafter as reasonably possible (but in any
event no later than two Business Days immediately following the Closing Date), the Company shall deliver to each Purchaser certificates representing the Shares (in such denominations as each Purchaser may request) acquired by such Purchaser at the
Closing. 

  
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 Section 3.2 NASDAQ Listing. Promptly following the Closing, the Company shall
use its commercially reasonable efforts to cause the Shares to be listed for trading on the NASDAQ Stock Market as soon as reasonably practicable. 
 Section 3.3 Independent Directors. 
 (a) From the date hereof, and
until the Company’s listing on the Nasdaq Stock Market, the Company shall not have less than three (3) independent directors (with independence being determined in accordance with the listing rules of the NASDAQ Stock Market). 

(b) Until the fifth (5th) anniversary of the date hereof, the Company shall not, and shall not permit any of its subsidiaries to,
without the prior written consent of a majority of the independent directors of the Company (with independence being determined in accordance with the listing rules of the NASDAQ Stock Market), either directly or indirectly: 

(i) enter into, modify, or amend any contract, agreement, arrangement, or transaction with any affiliate of the Company (including
Vintage Capital Management, LLC or any of its affiliates) (including without limitation any contract, agreement, arrangement, or transaction that would have any support or administrative services of the Company or its subsidiaries performed by
Vintage Capital Management, LLC or any of its affiliates), other than (x) any contract, agreement, arrangement, or transaction solely among the Company and any wholly-owned subsidiaries, and (y) any contract, agreement, arrangement, or
transaction which (A) is entered into by the Company or any of its subsidiaries in the ordinary course of their respective businesses, consistent with prior practice, and (B) involves payment of consideration by or to the Company or any of
its subsidiaries and otherwise has a value to the Company or any of its subsidiaries of less than $100,000; 
 (ii) effect any
reverse stock split or stock combination; 
 (iii) repurchase, redeem, cancel or otherwise consummate a transaction involving
any securities of the Company if the effect thereof would cause Vintage Capital Management, LLC and/or its affiliates to own ninety percent (90%) or more of any class of securities of the Company; or 

(iv) approve, enter into or consummate any Change in Control transaction in which Vintage Capital Management, LLC or any of its
affiliates (i) is receiving any transaction fees or other fees or (ii) is being paid, in respect of any equity securities of the Company, any consideration in addition to or in a different form than what is being paid to all other holders
of the Common Stock. For the purposes of this Agreement, “Change in Control” means (i) a change in ownership or control of the Company effected through a transaction or series of transactions whereby any individual or entity or
related “group” of individuals or entities directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the
total combined voting power of the Company’s securities outstanding immediately after such acquisition, whether by means of a sale, merger, consolidation or otherwise or (ii) the sale or conveyance of all or substantially all of the assets
of the Company and its subsidiaries, taken as a whole. 

  
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 Section 3.4 Participation Rights. 

(a) If the Company, after the Closing, subsequently authorizes the issuance or sale of any shares of Common Stock, any securities
(including debt securities) containing options or rights to acquire any shares of Common Stock (other than as a dividend on the outstanding shares of Common Stock) or any securities exchangeable for or convertible into Common Stock (collectively,
“Securities”), other than in an Exempt Issuance, the Company shall first offer to sell to each Purchaser a portion of such Securities, the allocation of which shall be equal to the number of such Securities multiplied by the
quotient determined by dividing (x) the number of shares of Common Stock held by such Purchaser (including shares of Common Stock issuable upon conversion or exchange of other securities of the Company) by (y) the total number of shares of
Common Stock then outstanding (including shares of Common Stock issuable upon conversion or exchange of other securities of the Company). The Purchasers shall be entitled to purchase all or any portion of its allotment of such Securities at the most
favorable price and on the most favorable terms as such Securities are to be offered to any other parties. The purchase price for all Securities offered to the Purchasers shall be payable in cash or, to the extent otherwise consistent with the terms
offered to any other parties, installments over time. For purposes of this Agreement, “Exempt Issuance” means any issuance of Securities (i) as consideration in connection with the acquisition of another company or business or
a joint venture agreement; (ii) to employees or consultants or directors of the Company or any of its subsidiaries pursuant to arrangements approved by the Board; (iii) upon conversion or exercise of, or in exchange for, any securities of
the Company or any options or other rights to acquire securities of the Company; (iv) in connection with any settlement of any action, suit, proceeding or litigation approved by the Board; (v) in connection with sponsored research,
collaboration, technology license, development, OEM, marketing or other similar agreements or strategic partnerships approved by the Board; (vi) to suppliers or third party service providers in connection with the provision of goods or services
pursuant to transactions approved by the Board; (vii) to banks, equipment lessors, real property lessors, financial institutions or other persons engaged in the business of making loans pursuant to a debt financing, commercial leasing or real
property leasing transaction approved by the Board; or (viii) pursuant to any stock split, stock dividend, stock combination, recapitalization or similar transaction that affects all stockholders or holders of any class of securities (as the
case may be) proportionately. 
 (b) In order to exercise its purchase rights hereunder, each Purchaser must within fifteen
(15) days after receipt of written notice from the Company describing in reasonable detail the Securities being offered, the purchase price thereof, the payment terms and such Purchaser’s allotment of the Securities deliver a written
notice to the Company describing its election hereunder. 
 (c) Upon the expiration of the offering period described above, the
Company shall be entitled to sell the Securities which the Purchasers have not elected to purchase during the 60 days following such expiration on terms and conditions no more favorable to the purchasers thereof than those offered to the Purchasers.
Any Securities offered or sold by the Company after such 60-day period must be reoffered to the Purchasers pursuant to the terms of this Section 3.4. 

  
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 (d) The provisions of this Section 3.4 shall terminate, with respect to each Purchaser,
upon the date that such Purchaser and its affiliates no longer own in the aggregate at least five percent (5%) of the outstanding Common Stock (calculated on a fully converted and exchanged basis). 

ARTICLE IV 

Conditions 
 Section 4.1 Conditions Precedent to the Obligation of the Company to Close and to Sell the Shares. The obligation hereunder of the Company to close and issue and sell the Shares to the
Purchasers on the Closing Date is subject to the satisfaction or waiver, at or before the Closing, of each of the conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any time in
its sole discretion. 
 (a) Accuracy of the Purchasers’ Representations and Warranties. The representations and
warranties of each Purchaser in this Agreement shall be true and correct in all material respects as of the date when made and as of the Closing as though made at that time, except for representations and warranties that are expressly made as of a
particular date, which shall be true and correct in all material respects as of such date. 
 (b) Performance by the
Purchasers. Each Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchasers at or prior
to the Closing Date. 
 (c) No Suspension, Etc. Trading in the Common Stock shall not have been suspended by the SEC
(except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by Bloomberg, nor shall a banking moratorium have been declared by the United States authorities, nor shall there
have occurred any national or international calamity or crisis of such magnitude in its effect on any financial market which, in each case, in the reasonable judgment of the Purchasers, makes it impracticable or inadvisable to purchase the Shares.

 (d) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been
enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement. 

(e) No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have
been commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated
by this Agreement, or seeking damages in connection with such transactions. 

  
 -10-

 (f) Delivery of Purchase Price. The Purchase Price for the Shares shall have been
delivered to the Company by each Purchaser at the Closing. 
 (g) Delivery of Transaction Documents. The Transaction
Documents to which the Purchasers are party shall have been duly executed and delivered by each of the Purchasers to the Company. 
 Section 4.2 Conditions Precedent to the Obligation of the Purchasers to Close and to Purchase the Shares. The obligation hereunder of the Purchasers to purchase the Shares and consummate the
transactions contemplated by this Agreement is subject to the satisfaction or waiver, at or before the Closing, of each of the conditions set forth below. These conditions are for each Purchaser’s sole benefit and may be waived by each
Purchaser at any time in its sole discretion. 
 (a) Accuracy of the Company’s Representations and Warranties. Each
of the representations and warranties of the Company in this Agreement shall be true and correct in all material respects as of the Closing, except for representations and warranties that speak as of a particular date, which shall be true and
correct in all material respects as of such date. 
 (b) Performance by the Company. The Company shall have performed,
satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. 

(c) No Suspension, Etc. Trading in the Common Stock shall not have been suspended by the SEC (except for any suspension of trading
of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg shall not have been suspended or limited,
or minimum prices shall not have been established on securities whose trades are reported by Bloomberg, nor shall a banking moratorium have been declared by the United States authorities, nor shall there have occurred any national or international
calamity or crisis of such magnitude in its effect on any financial market which, in each case, in the reasonable judgment of the Purchasers, makes it impracticable or inadvisable to purchase the Shares. 

(d) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement. 

(e) No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have
been commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated
by this Agreement, or seeking damages in connection with such transactions. 

  
 -11-

 (f) Shares. The Company shall have made arrangements for delivery of the certificates
representing the Shares (in such denominations as each Purchaser may request) being acquired by the Purchasers at the Closing. 

(g) Officer’s Certificate. On the Closing Date, the Company shall have delivered to the Purchasers a certificate of an
executive officer of the Company, dated as of the Closing Date, confirming the accuracy of the Company’s representations, warranties and covenants as of the Closing Date and confirming the compliance by the Company with the conditions precedent
set forth in Section 4.2(a) and Section 4.2 (b) as of the Closing Date. 
 (h) Registration
Rights Agreement. As of the Closing Date, the parties shall have entered into the Registration Rights Agreement. 
 (i)
Minimum Investment. The Company shall have received the entire Purchase Price from each Purchaser, representing an aggregate amount equal to a minimum of $31,147,727 in gross proceeds in respect of the sale of the Shares. 

ARTICLE V 

Certificate Legend 
 Section 5.1 Legend. Each certificate representing the Shares shall be stamped or otherwise imprinted with a legend substantially in the following form (in addition to any legend required by
applicable state securities or “blue sky” laws): 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR
UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.” 
 The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Shares upon which it is stamped if, unless otherwise required by state
securities laws, (i) while such Shares are registered for resale under the Securities Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel reasonably satisfactory to
the Company, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Shares may be made without registration under the applicable requirements of the Securities Act and that such legend is no longer required, or
(iii) such holder provides the Company with reasonable assurance that the Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A, and such holder delivers the legended Shares to the Company or the Company’s transfer
agent. 

  
 -12-

 ARTICLE VI 
 Termination 
 Section 6.1 Termination by Mutual Consent. This
Agreement may be terminated at any time prior to the Closing Date by the mutual written consent of the Company and the Purchasers. 
 Section 6.2 Effect of Termination. In the event of termination by the Company or the Purchasers, written notice thereof shall forthwith be given to the other party and the transactions
contemplated by this Agreement shall be terminated without further action by any party. If this Agreement is terminated as provided in Section 6.1 herein, this Agreement shall become void and of no further force and effect, except for
Sections 7.1 and 7.2. Nothing in this Section 6.2 shall be deemed to release the Company or any Purchaser from any liability for any breach under this Agreement or to impair the rights of the Company or such Purchaser to
compel specific performance by the other party of its obligations under this Agreement. 
 ARTICLE VII 

Miscellaneous 
 Section 7.1 Fees and Expenses. Each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement; provided, however, that the Company shall pay the brokers’, finders’ and placement agents’ fees for the brokers, finders
and placement agents that have been retained by the Company. 
 Section 7.2 Specific Enforcement; Consent to
Jurisdiction. 
 (a) The Company and the Purchasers acknowledge and agree that irreparable damage would occur in the event
that any of the provisions of this Agreement or the other Transaction Documents were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement or the other Transaction Documents and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them
may be entitled by law or equity. 
 (b) With respect to any disputes arising out of or related to this Agreement or any of the
other Transaction Documents or the transactions contemplated hereby or thereby, the parties consent to the exclusive jurisdiction of, and venue in, the state courts in Wilmington 

  
 -13-

 
County in the State of Delaware (or in the event of exclusive federal jurisdiction, the courts of the District of Delaware). The parties hereby waive, and agree not to assert in any such suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. The Company
and each Purchaser consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing in this Section 7.2 shall affect or limit any right to serve process in any other manner permitted by law. The Company and the Purchasers hereby agree that the prevailing party in
any suit, action or proceeding arising out of or relating to the Shares, this Agreement or the Registration Rights Agreement, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party. 

Section 7.3 Entire Agreement; Amendment. This Agreement and the Transaction Documents contain the entire understanding and
agreement of the parties with respect to the matters covered hereby and, except as specifically set forth herein or in the other Transaction Documents, neither the Company nor any Purchaser make any representation, warranty, covenant or undertaking
with respect to such matters, and they supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein. No provision of this Agreement may be waived or amended other than by a written instrument
signed by the Company and the holders of at least a majority in interest of the then-outstanding Shares, and no provision hereof may be waived other than by a written instrument signed by the party against whom enforcement of any such amendment or
waiver is sought. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Shares then outstanding. No consideration shall be offered or paid to any person to amend or consent to a waiver or
modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents or holders of Shares, as the case may be. 

Section 7.4 Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder
shall be in writing and shall be effective (a) upon hand delivery if delivered in person or upon transmission if sent by telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), or (b) on the second business day
following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

	 If to the Company: 
	API Technologies Corp. 

	 	4705 S. Apopka Vineland Road 

	 	Suite 210 

	 	Orlando, FL 32819 

	 	Attention: Brian Kahn, Chairman and Chief Executive Officer 

	 	Facsimile: (208) 728-8007 

  
 -14-

			
		    	With copies (which shall not constitute notice) to:
		
		    	Wilson Sonsini Goodrich & Rosati, P.C.
		    	650 Page Mill Road
		    	Palo Alto, California 94304
		    	Attn: Bradley L. Finkelstein
		    	Facsimile: (650) 493-6811
		
	If to any Purchaser:	    	At the address of such Purchaser set forth on Exhibit A to this Agreement.

 Any party hereto may from time to time change its address for notices by giving at least ten
(10) days written notice of such changed address to the other party hereto. 
 Section 7.5 Waivers. No waiver
by any party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter. 
 Section 7.6 Headings. The article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall
not be deemed to limit or affect any of the provisions hereof. 
 Section 7.7 Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their successors and assigns. After the Closing, the assignment by a party to this Agreement of any rights hereunder shall not affect the obligations of such party under this
Agreement. Except as provided herein, the Purchasers may not assign the Shares and their rights under this Agreement and the other Transaction Documents and any other rights hereto and thereto without the consent of the Company. 

Section 7.8 No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 
 Section 7.9 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to the choice of law
provisions. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted. 
 Section 7.10 Survival. Unless this Agreement is terminated under Section 6.1, the representations and warranties of the Company and the Purchasers contained in Article II shall
survive the execution and delivery hereof and the Closing until the date one (1) year from the Closing Date, and the agreements and covenants set forth in Articles I, III, V and VII of this Agreement shall survive the execution and delivery
hereof and the Closing hereunder. 

  
 -15-

 Section 7.11 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need
not sign the same counterpart. 
 Section 7.12 Publicity. The Company agrees that it will not disclose, and will not
include in any public announcement, the names of the Purchasers without the consent of the Purchasers in accordance with Section 7.3, which consent shall not be unreasonably withheld or delayed, or unless and until such disclosure is
required by law, rule or applicable regulation, and then only to the extent of such requirement; provided, however, that the Purchasers acknowledge and agree that they will be included as selling shareholders in the Registration
Statement. 
 Section 7.13 Securities Laws. THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS AGREEMENT
HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF ANY STATE AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES
IS EXEMPT FROM QUALIFICATION. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT. 
 Section 7.14 Severability. The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or
part of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of
this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to
the maximum extent possible. 
 Section 7.15 Further Assurances. From and after the date of this Agreement, upon the
request of the Purchasers or the Company, the Company and each Purchaser shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent
and purposes of this Agreement and the Registration Rights Agreement. 
 Section 7.16 Independent Nature of
Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as
a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the
Transaction Documents. Each Purchaser confirms that it has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. Each Purchaser shall be entitled to independently

  
 -16-

 
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for such purpose. 
 [Remainder of page intentionally left blank.
Signature pages to follow.] 

  
 -17-

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the date first above written. 
  

			
	 COMPANY:

	
	 API TECHNOLOGIES CORP.

		
	 By:
	 	 /s/ Brian
Kahn

			
	 Name:
	 	 Brian Kahn

	 Title:
	 	 Chairman and Chief Executive Officer

  

[Signature Page to Common Stock Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the date first above written. 
  

			
	PURCHASER:
	
	
	
	
		
	Email:	 	
		
	Address:	 	
	
	

  

					
	Number of Shares:	 		  	

			
		
	Price Per Share:	  	$[        ]

			
		
	Aggregate Purchase Price:	  	$        

 Please provide us with the following information: 

 

			
	 1. The exact name that your Shares are to be registered in. You may use a nominee name if appropriate:
	 	
		
	 2. The relationship between the Purchaser and the registered holder listed in response to item 1 above:
	 	
		
	 3. The mailing address of the registered holder listed in response to item 1 above:
	 	
		
	 4. The Social Security Number or Tax Identification Number of the registered holder listed in response to item 1
above:
	 	

  

[Signature Page to Common Stock Purchase Agreement] 

 EXHIBIT A 

LIST OF PURCHASERS 
 Purchasers 
  

													
	 Name
	  	Number of Shares	 	  	Price Per
Share	 	  	Aggregate
Purchase Price	 
	 Dialectic Capital Partners
	  	 	127,159	  	  	 	6.50	  	  	$	826,533.50	  
	 Dialectic Offshore Ltd Technology
	  	 	111,093	  	  	 	6.50	  	  	$	722,104.50	  
	 Dialectic Antithesis Offshore Ltd
	  	 	312,638	  	  	 	6.50	  	  	$	2,032,147.00	  
	 Dialectic Offshore L2 Ltd Technology
	  	 	190,475	  	  	 	6.50	  	  	$	1,238,087.50	  
	 Dialectic Antithesis Partners
	  	 	335,559	  	  	 	6.50	  	  	$	2,181,133.50	  
	 Senator Sidecar Master Fund LP
	  	 	769,231	  	  	 	6.50	  	  	$	5,000,001.50	  
	 B. Riley & Co. LLC
	  	 	292,307	  	  	 	6.50	  	  	$	1,899,995.50	  
	 B. Riley & Co. Commission
	  	 	202,154	  	  	 	6.50	  	  	$	1,314,001.00	  
	 Riley Investment Partners
	  	 	44,000	  	  	 	6.50	  	  	$	286,000.00	  
	 Robert Antin Irrevocable Trust 1/1/01
	  	 	76,923	  	  	 	6.50	  	  	$	499,999.50	  
	 Hoak Public Equities
	  	 	153,847	  	  	 	6.50	  	  	$	1,000,005.50	  
	 Palogic Value Fund LP
	  	 	108,000	  	  	 	6.50	  	  	$	702,000.00	  
	 Catalysis Partners LLC
	  	 	269,230	  	  	 	6.50	  	  	$	1,749,995.00	  
	 Catalysis Offshore Ltd
	  	 	115,384	  	  	 	6.50	  	  	$	749,996.00	  
	 Equitec Proprietary Markets
	  	 	384,615	  	  	 	6.50	  	  	$	2,499,997.50	  
	 Pyramid Trading LP
	  	 	384,615	  	  	 	6.50	  	  	$	2,499,997.50	  
	 L. Kevin Dann
	  	 	100,000	  	  	 	6.50	  	  	$	650,000.00	  
	 Michael J. Alpert
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Thomas E. Alpert
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Mark Berman
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Mark Reichenbaum IRA
	  	 	46,154	  	  	 	6.50	  	  	$	300,001.00	  
	 MAR Family LP
	  	 	107,693	  	  	 	6.50	  	  	$	700,004.50	  
	 James English IV Revocable Trust 4/16/91
	  	 	50,000	  	  	 	6.50	  	  	$	325,000.00	  

  
 A-1

													
	 Name
	  	Number of Shares	 	  	Price Per
Share	 	  	Aggregate
Purchase Price	 
	 David & Wanda Brown As Tenants
	  	 	75,000	  	  	 	6.50	  	  	$	487,500.00	  
	 Atlas Allocation Fund
	  	 	77,000	  	  	 	6.50	  	  	$	500,500.00	  
	 Don Schenkler
	  	 	7,692	  	  	 	6.50	  	  	$	49,998.00	  
	 Darren Schenkler
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Aaron Quiggle
	  	 	3,846	  	  	 	6.50	  	  	$	24,999.00	  
	 Chris Temple
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Boldt Partners I LP
	  	 	21,748	  	  	 	6.50	  	  	$	141,362.00	  
	 Boldt Partners II LP
	  	 	9,022	  	  	 	6.50	  	  	$	58,643.00	  
	 Kenneth Silverman
	  	 	10,000	  	  	 	6.50	  	  	$	65,000.00	  
	 PMI Family LP
	  	 	46,153	  	  	 	6.50	  	  	$	299,994.50	  
	 Benchmark Partners LP
	  	 	25,000	  	  	 	6.50	  	  	$	162,500.00	  
	 Grand Slam Caoutak Master Fund Ltd.
	  	 	120,000	  	  	 	6.50	  	  	$	780,000.00	  
	 Intrinsic Edge Capital
	  	 	138,500	  	  	 	6.50	  	  	$	900,250.00	  
		  	  
	  
	 	  				  	  
	  
	 
	 TOTAL
	  	 	4,791,958	  	  				  	$	31,147,727	  
		  	  
	  
	 	  				  	  
	  
	 

  
 A-2

 EXHIBIT B 

FORM OF REGISTRATION RIGHTS AGREEMENT 

  
 B-1Registration Rights Agreement

 Exhibit 10.31 
 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement
(this “Agreement”) is made and entered into as of June 27, 2011, by and among API Technologies Corp., a Delaware corporation (the “Company”), the persons and entities listed on Exhibit A hereto (each, an
“Investor” and, collectively, the “Investors”), and, with respect to Section 8(l) only, Vintage Albany Acquisition, LLC, a Delaware limited liability company. 

RECITALS 

WHEREAS, upon the terms and subject to the conditions of the Common Stock Purchase Agreement, dated as of the date hereof (the
“Purchase Agreement”), the Company has agreed to issue and sell certain shares of common stock, par value $0.001 per share, of the Company (“Common Stock”) to the Investors; and 

WHEREAS, to induce the Investors to execute and deliver the Purchase Agreement and to purchase the Shares (as defined in the Purchase
Agreement), the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, with respect to the Shares. 
 NOW, THEREFORE, in consideration of the representations, warranties and agreements contained herein and other good and valuable consideration, the receipt and legal adequacy of which are hereby
acknowledged by the parties, the Company and the Investors hereby agree as follows: 
 1. Definitions. 

Capitalized terms used but not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement. As used in
this Agreement, the following terms shall have the following meanings: 
 “Affiliate” means, with respect to
any Person, any other Person that directly or indirectly controls or is controlled by or under common control with such Person. For the purposes of this definition, “control,” when used with respect to any Person, means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “affiliated,”
“controlling” and “controlled” have meanings correlative to the foregoing. 

“Board” shall have the meaning set forth in Section 3(m). 

 “Business Day” means any day except Saturday, Sunday and any day which is a
legal holiday or a day on which banking institutions in the state of Florida generally are authorized or required by law or other government actions to close. 
 “Commission” means the Securities and Exchange Commission. 

“Common Shares” shall have the meaning set forth in the definition of “Registrable Securities.” 

“Common Stock” shall have the meaning set forth in the Recitals. 

“Effectiveness Date” means, with respect to the Registration Statement, the date on which the Registration is declared
effective by the Commission. 
 “Effectiveness Period” shall have the meaning set forth in Section 2.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Existing Registration Rights Agreement” means that certain Registration Rights Agreement, dated January 21, 2011,
by and between the Company and Vintage Albany Acquisition, LLC. 
 “Holder” means, collectively, each holder
from time to time of Registrable Securities including, without limitation, each Investor and its permitted assignees. To the extent this Agreement refers to an election, consent, waiver, request or approval of or by the Holders, such reference shall
mean an election, consent, waiver, request or approval by the Holders of a majority in interest of the then-outstanding Registrable Securities. 
 “Indemnified Party” shall have the meaning set forth in Section 6(c). 
 “Indemnifying Party” shall have the meaning set forth in Section 6(c). 
 “Losses” shall have the meaning set forth in Section 6(a). 

“Person” means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint
venture, limited liability company, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind. 
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or
threatened. 
 “Prospectus” means the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and
all material incorporated by reference in such Prospectus, as applicable. 

  
 -2-

 “Registrable Securities” means (i) the shares of Common Stock issued
pursuant to the Purchase Agreement, and upon any stock split, stock dividend, recapitalization or similar event with respect to such shares of Common Stock and any other securities issued in exchange of or replacement of such shares of Common Stock
(collectively, the “Common Shares”); until in the case of any particular Common Share (a) a Registration Statement covering such Common Share has been declared effective by the Commission and continues to be effective during
the Effectiveness Period, (b) such Common Share is sold in compliance with Rule 144 or (c) such Common Share may be sold in compliance with Rule 144 without restriction, after which time such Common Share shall not be a Registrable
Security 
 “Registration Statement” means the registration statement, including the Prospectus, amendments and
supplements to such registration statement or Prospectus, including, as applicable, any pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference in such registration statement, for the Shares required to
be filed by the Company with the Commission pursuant to this Agreement. 
 “Required Effective Date” shall have
the meaning set forth in Section 8(b). 
 “Rule 144” means Rule 144 promulgated by the Commission pursuant
to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

“Rule 158” means Rule 158 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
 “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted
by the Commission having substantially the same effect as such Rule. 
 “Securities Act” means the Securities
Act of 1933, as amended. 
 “Special Counsel” means a single attorney selected by and acting as special counsel
on behalf of all of the Holders. 

  
 -3-

 2. Registration. The Company shall prepare and file with the Commission a
Registration Statement covering the resale of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415 as soon as commercially practicable after the date hereof. Such Registration Statement shall be on Form
S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance with the Securities Act and the rules promulgated
thereunder) and shall contain (except if otherwise directed by the Investors) the “Plan of Distribution” attached hereto as Exhibit B. The Company shall (i) use its commercially reasonable efforts to cause the
Registration Statement to be declared effective under the Securities Act (including filing with the Commission a request for acceleration of effectiveness in accordance with Rule 461 promulgated under the Securities Act within five (5) Business
Days of the date that the Company is notified in writing by the Commission that the Registration Statement will not be “reviewed,” or not be subject to further review) as soon as possible after the filing thereof and (ii) keep such
Registration Statement continuously effective under the Securities Act until the earliest to occur of: (x) the five (5) year anniversary of the Closing Date (as defined in the Purchase Agreement), (y) the date on which all of the
Shares sold pursuant to the Purchase Agreement may be sold under Rule 144, or (z) the date on which all of the Shares sold pursuant to the Purchase Agreement have been sold by the Investors who purchased such shares pursuant to the Purchase
Agreement (the “Effectiveness Period”). 
 3. Registration Procedures; Company’s Obligations.

 In connection with the registration of the Registrable Securities, the Company shall: 

(a) Prepare and file with the Commission a Registration Statement on Form S-3 (or if the Company is not then eligible to register for
resale the Registrable Securities on Form S-3 such registration shall be on another appropriate form in accordance with the Securities Act and the Rules promulgated thereunder) in accordance with the method or methods of distribution thereof as
specified herein, and use its commercially reasonable efforts to cause the Registration Statement to become effective as soon as commercially practicable after the date hereof and remain effective as provided herein; provided, however,
that not less than three (3) Business Days prior to the filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated therein by reference), the Company
shall furnish to the Special Counsel copies of all such documents proposed to be filed, which documents (other than those incorporated by reference) will be subject to the timely review of and comment by such Special Counsel. 

(b) Use its commercially reasonable efforts to (i) prepare and file with the Commission such amendments, including post-effective
amendments, to the Registration Statement as may be necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period in order to register for resale under the Securities Act
all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424 (or any similar provisions then in
force) promulgated under the Securities Act; (iii) respond promptly to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and promptly provide the

  
 -4-

 
Special Counsel with true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition set
forth in the Registration Statement as so amended or in such Prospectus as so supplemented. 
 (c) Promptly notify the Special
Counsel (and, in the case of (i)(C) below, no later than the first Business Day following the date on which the Registration Statement becomes effective) and (only if requested by such Special Counsel) confirm such notice in writing no later than
three (3) Business Days following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is proposed to be filed, (B) when the Commission notifies the Company whether there
will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to the Registration Statement or any post-effective amendment, when the same has
become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by
the Commission of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of
the occurrence of any event that makes any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to the
Registration Statement, Prospectus or other documents so that, in the case of the Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 (d) The Company shall promptly furnish to the Special Counsel, without charge, (i) any correspondence from the Commission or the Commission’s staff to the Company or its representatives relating
to any Registration Statement, and (ii) promptly after the same is prepared and filed with the Commission, a copy of any written response to the correspondence received from the Commission. 

(e) Use its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, (i) any order
suspending the effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any U.S. jurisdiction, at the earliest practicable
moment. 
 (f) If requested by the Special Counsel, (i) promptly incorporate in a Prospectus supplement or post-effective
amendment to the Registration Statement such information as the Company reasonably agrees should be included therein, and (ii) make all required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after
the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment. 

  
 -5-

 (g) Promptly deliver to the Holder and any Special Counsel, without charge, as many copies
of the Registration Statement, Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. 
 (h) Prior to any public offering of Registrable Securities, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holder and any Special Counsel in connection with
the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as the Holder reasonably
requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions
of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any
action that would subject it to general service of process in any such jurisdiction where it is not then so subject or subject the Company to any tax in any such jurisdiction where it is not then so subject. 

(i) Cooperate with the Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be
sold pursuant to a Registration Statement and to enable such Registrable Securities to be in such denominations and registered in such names as the Holder may request to the Company’s transfer agent at least two (2) Business Days prior to
any sale of Registrable Securities. 
 (j) Upon the occurrence of any event contemplated by Section 3(c)(v), promptly
prepare a supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other
required document so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading. 
 (k) Use its commercially
reasonable efforts to cause all Registrable Securities relating to such Registration Statement to be quoted on any securities exchange, quotation system, market or over-the-counter bulletin board on which the same securities issued by the Company
are then listed. 
 (l) Use its commercially reasonable efforts to comply in all material respects with all applicable rules and
regulations of the Commission and make generally available to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 not later than ninety (90) days after the end of any twelve
(12) month period commencing on the first day of the first fiscal quarter of the Company after the effective date of the Registration Statement, which statement shall conform to the requirements of Rule 158. 

  
 -6-

 (m) If, in the good faith judgment of the Board of Directors of the Company (the
“Board”) and reflected in a formal resolution of the Board, the continued effectiveness of the Registration Statement covering the Registrable Securities would be detrimental to the Company, and the Board concludes, as a result,
that it is in the best interests of the Company to suspend the effectiveness of such Registration Statement at such time, then the Company may suspend effectiveness of the Registration Statement and suspend the sale of Registrable Securities under
the Registration Statement; provided, however, that the Company may not suspend effectiveness of the Registration Statement or suspend the sale of Registrable Securities thereunder for more than sixty (60) days in the aggregate in
any twelve (12) month period or for more than thirty (30) consecutive days. 
 (n) Within two (2) Business Days
of the Effectiveness Date, the Company shall deliver, or shall cause its legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Special Counsel) confirmation that the Registration
Statement has been declared effective by the Commission in the form attached hereto as Exhibit C. 
 4. Registration
Procedures; Holder’s Obligations 
 In connection with the registration of the Registrable Securities, each Holder
shall: 
 (a) (i) not sell any Registrable Securities under the Registration Statement until it has received copies of the
Prospectus as then amended or supplemented as contemplated by Section 3(f) and notice from the Company to the Special Counsel that such Registration Statement and any post-effective amendments thereto have become effective as contemplated by
Section 3(c), (ii) comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement, and (iii) furnish to the Company
information regarding such Holder and the distribution of such Registrable Securities as is required by law to be disclosed in the Registration Statement, and the Company may exclude from such registration the Registrable Securities of the Holder if
it fails to furnish such information within a reasonable time prior to the filing of each Registration Statement, supplemented Prospectus and/or amended Registration Statement. 

(b) upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c)(ii), 3(c)(iii),
3(c)(iv), 3(c)(v) or 3(l), forthwith discontinue disposition of such Registrable Securities under the Registration Statement until the Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement
contemplated by Section 3(i), or, with respect to the suspension of effectiveness of a Registration Statement under Section 3(l), until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed, and,
in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. 

  
 -7-

 5. Registration Expenses 

All reasonable fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the
Company whether or not the Registration Statement is filed or becomes effective and whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include,
without limitation, the following: (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with each securities exchange or other market on which Registrable
Securities are listed, (B) with respect to filings required to be made with the Commission, and (C) in compliance with state securities or Blue Sky laws); (ii) printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities and of printing prospectuses, if the printing of prospectuses is requested by the holders of a majority of the Registrable Securities included in the Registration Statement); (iii) messenger, telephone
and delivery expenses; (iv) fees and disbursements of counsel for the Company; and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement,
including, without limitation, the Company’s independent public accountants (including the expenses of any comfort letters or costs associated with the delivery by independent public accountants of a comfort letter or comfort letters). In
addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual audit, and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. The Company shall
not be responsible for the payment of any commissions or other expenses incurred by the Holder in connection with their sales of Registrable Securities or for the fees of any Special Counsel. 

6. Indemnification 
 (a) Indemnification by the Company. To the extent permitted by law, the Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, each of its
officers, directors, legal counsel, and accountants, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of
each such controlling Person, and the respective successors, permitted assigns, estate and personal representatives of each of the foregoing, to the fullest extent permitted by applicable law, from and against any and all claims, losses, damages,
liabilities, penalties, judgments, costs (including, without limitation, costs of investigation) and expenses (including, without limitation, reasonable attorneys’ fees and expenses) (collectively, “Losses”), as incurred,
arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus, as supplemented or amended, if applicable, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not
misleading, except (i) to the extent that such untrue statements or omissions are based upon information regarding the Holder furnished in writing to the Company by the Holder, or its officers, directors, legal counsel, or

  
 -8-

 
accountants, or each person controlling such Holder, which information was reviewed and expressly approved by the Holder or Special Counsel expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto, (ii) as a result of the failure of the Holder to deliver a Prospectus, as amended or supplemented, to a purchaser in connection with an offer or sale (provided
that copies of the Prospectus, as amended or supplemented, have been made available, as required by this Agreement, to the Holder by the Company for delivery to such purchaser), or (iii) for amounts paid in settlement of any such Loss if such
settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld, conditioned or delayed). Each party shall notify the other promptly of the institution, threat or assertion of any Proceeding of which it is
aware in connection with the transactions contemplated by this Agreement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined in Section 6(c) hereof) and
shall survive the transfer of the Registrable Securities by the Holder. 
 (b) Indemnification by Holders. Each Holder
shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act, and the directors, officers,
agents or employees of such controlling Persons, and the respective successors, assigns, estate and personal representatives of each of the foregoing, to the fullest extent permitted by applicable law, from and against any and all Losses, as
incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus, as supplemented or amended, if applicable, or arising out of or relating to any omission or
alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made)
not misleading, to the extent that (i) such untrue statement or omission is contained in or omitted from any information furnished in writing by the Holder or the Special Counsel to the Company for inclusion in the Registration Statement or
such Prospectus, and (ii) such information was reasonably relied upon by the Company for use in the Registration Statement, such Prospectus or such form of prospectus. Notwithstanding anything to the contrary contained herein, each Holder shall
be liable under this Section 6(b) for only that amount as does not exceed the gross proceeds to such Holder as a result of the sale of Registrable Securities pursuant to such Registration Statement. 

(c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to
indemnity pursuant to Section 6(a) or 6(b) hereunder (an “Indemnified Party”), such Indemnified Party promptly shall notify the Person from whom indemnity is sought (the “Indemnifying Party) in writing, and the
Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the
failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except to the extent that such failure shall have materially and adversely prejudiced the
Indemnifying Party. 

  
 -9-

 An Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses; or
(ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to
represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying
Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written
consent, which consent shall not be unreasonably withheld, conditioned or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, which consent shall not unreasonably be withheld, conditioned or delayed,
effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such
Proceeding. 
 All reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 6(c)) shall be paid to the Indemnified Party, as incurred, within ten (10) Business Days of written notice
thereof to the Indemnifying Party provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is
not entitled to indemnification hereunder or pursuant to applicable law. 
 (d) Contribution. If a claim for
indemnification under Section 6(a) or 6(b) is unavailable to an Indemnified Party because of a failure or refusal of a governmental authority to enforce such indemnification in accordance with its terms (by reason of public policy or
otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or
made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The
amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been indemnified for such fees or 

  
 -10-

 
expenses if the indemnification provided for under Section 6(a) or 6(b) was available to such party in accordance with its terms. Notwithstanding anything to the contrary contained herein,
each Holder shall be liable or required to contribute under this Section 6(d) for only that amount as does not exceed the gross proceeds to such Holder as a result of the sale of Registrable Securities pursuant to the Registration Statement.

 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were
determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 The indemnity and contribution agreements contained in this Section 6(d) are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 

7. Rule 144. 
 As long as the Holder owns Registrable Securities, the Company covenants to use its commercially reasonable efforts to timely file (or obtain extensions in respect thereof and file within the applicable
grace period) all reports required to be filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act for so long as the Company is subject to such reporting requirements. As long as the Holder owns
Registrable Securities, if the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will use its commercially reasonable efforts to prepare and furnish to the Holder, and make publicly available in
accordance with Rule 144(c) promulgated under the Securities Act, annual and quarterly financial statements, together with a discussion and analysis of such financial statements in form and substance substantially similar to those that would
otherwise be required to be included in reports required by Section 13(a) or 15(d) of the Exchange Act, as well as any other information required thereby, in the time period that such filings would have been required to have been made under the
Exchange Act. The Company further covenants to use its commercially reasonable efforts to take such further action as the Holder may reasonably request, all to the extent required from time to time to enable the Holder to sell the Shares without
registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act. Upon the request of any Holder, the Company shall deliver to such Holder a written certification of a duly
authorized officer as to whether it has complied with such requirements. 
 8. Miscellaneous. 

(a) Remedies. The remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by law, and in the
event of a breach by the Company or by the Holder of any of their obligations under this Agreement, the Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, will be entitled to specific performance of its rights under this Agreement. 

  
 -11-

 (b) Consent to Jurisdiction. With respect to any disputes arising out of or related
to this Agreement or any of the other Transaction Documents or the transactions contemplated hereby or thereby, the parties hereto consent to the exclusive jurisdiction of, and venue in, the state courts in Wilmington County in the State of Delaware
(or in the event of exclusive federal jurisdiction, the courts of the District of Delaware). The parties hereto hereby waive, and agree not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. The Company and each Investors consent to process being served in any such suit,
action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this
Section 8(b) shall affect or limit any right to serve process in any other manner permitted by law. The Company and the Investors hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to the Shares,
this Agreement or the Registration Rights Agreement, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party. 
 (c) Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders holding a majority of the Registrable Securities (excluding any of such shares that have been sold to the public or pursuant to Rule
144); provided, however, that if any amendment, modification, or supplement operates in a manner that treats any Holder different from other Holders, the consent of such Holder shall also be required for such amendment, modification or
supplement. Any such amendment, modification, or supplement effected in accordance with this paragraph shall be binding upon each Holder and each future holder of all such securities of Holder. Each Holder acknowledges that by the operation of this
paragraph, the holders of a majority of the Registrable Securities (excluding any of such shares that have been sold to the public or pursuant to Rule 144) will have the right and power to diminish or eliminate all rights of such Holder under this
Agreement. 
 (d) Notices. Any notice, demand, request, waiver or other communication required or permitted to be given
hereunder shall be in writing and shall be effective (a) upon hand delivery if delivered in person or upon transmission if sent by telecopy or facsimile at the address or number designated below (if delivered on a Business Day during normal
business hours where such notice is to be received), or the first Business Day following such delivery (if delivered other than on a Business Day during normal business hours where such notice is to be received), or (b) on the second Business
Day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

	 	(x)	if to the Company: 

 API
Technologies Corp. 
 4705 S. Apopka Vineland Road 
 Suite 210 
 Orlando, FL 32819 

Attention: Brian Kahn, Chairman and Chief Executive Officer 
 Facsimile: (208) 728-8007 

  
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 with a copy to: 
 Wilson Sonsini Goodrich & Rosati, P.C. 
 650 Page Mill Road 

Palo Alto, California 94304 
 Attention: Bradley L. Finkelstein, Esq. 
 Facsimile No.: (650) 493-6811

  

	 	(y)	if to any Holder: 

 At the
address of such Holder set forth on Exhibit A to this Agreement. 
 or to such other address or addresses or facsimile number or numbers
as any such party may most recently have designated in writing to the other parties hereto by such notice. 
 (e) Successors
and Assigns. Subject to Section 8(f), this Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns and shall inure to the benefit of their successors and assigns. 

(f) Assignment of Registration Rights. The rights of each Holder hereunder, including the right to have the Company register for
resale the Registrable Securities in accordance with the terms of this Agreement, shall be assignable by each Holder to any transferee of the Holder of all or a portion of the shares of the Registrable Securities if: (i) the Holder agrees in
writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (A) the name and address of such transferee or assignee, and (B) the securities with respect to which such registration rights are being transferred or assigned; (iii) following such
transfer or assignment the further disposition of such securities by the transferee or assignees is restricted under the Securities Act and applicable state securities laws; (iv) at or before the time the Company receives the written notice
contemplated by clause (ii) of this Section 8(f), the transferee or assignee agrees in writing with the Company to be bound by all of the provisions of this Agreement; and (v) such transfer shall have been made in accordance with the
applicable requirements of the Purchase Agreement and shall be for no less than 20% of the Registrable Securities held by such Holder. The rights to assignment shall apply to the Holder (and to subsequent) successors and assigns. In the event of an
assignment pursuant to this Section 8(f), if requested by the Company, the Holder shall pay all incremental costs and expenses incurred by the Company in connection with filing a Registration Statement (or an amendment to the Registration
Statement) to register the shares of Registrable Securities assigned to any assignee or transferee of the Holder. 

  
 -13-

 (g) Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof. 

(h) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without
regard to principles of conflicts of law thereof. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted. 

(i) Termination. This Agreement shall terminate on the earlier of the date when the Effectiveness Period expires and the date on
which all remaining Registrable Securities may be sold without restriction pursuant to Rule 144. 
 (j) Severability. If
any term, provision, covenant or restriction of this Agreement is held to be invalid, illegal, void or unenforceable in any respect, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable. 
 (k) Headings. The headings herein are for convenience
only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 
 (l)
Consent of Existing Investor. Vintage Albany Acquisition, LLC hereby consents to the entry by the Company into this Agreement, which consent shall satisfy the condition set forth in Section 2.12 of the Existing Registration Rights
Agreement. 

  
 -14-

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized persons as of the date first indicated above. 
  

			
	API TECHNOLOGIES CORP.
		
	By:	 	 /s/ Brian Kahn

		 	Name: Brian Kahn
		 	Title: Chairman and Chief Executive Officer

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized persons as of the date first indicated above. 
  

			
	INVESTOR:
	
	  

		
	By:	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized persons as of the date first indicated above. 
  

			
	VINTAGE ALBANY ACQUISITION, LLC
		
	By:	 	 Vintage Albany Partners, LP, its sole member

		
	By:	 	 Vintage Albany Partners GP, LLC, its general partner

		
	By:	 	 /s/ Brian R. Kahn

		 	Name: Brian R. Kahn
		 	Title: Manager

 EXHIBIT A 

INVESTORS 
  

													
	 Name
	  	Number of Shares	 	  	Price Per
Share	 	  	Aggregate
Purchase Price	 
	 Dialectic Capital Partners
	  	 	127,159	  	  	 	6.50	  	  	$	826,533.50	  
	 Dialectic Offshore Ltd Technology
	  	 	111,093	  	  	 	6.50	  	  	$	722,104.50	  
	 Dialectic Antithesis Offshore Ltd
	  	 	312,638	  	  	 	6.50	  	  	$	2,032,147.00	  
	 Dialectic Offshore L2 Ltd Technology
	  	 	190,475	  	  	 	6.50	  	  	$	1,238,087.50	  
	 Dialectic Antithesis Partners
	  	 	335,559	  	  	 	6.50	  	  	$	2,181,133.50	  
	 Senator Sidecar Master Fund LP
	  	 	769,231	  	  	 	6.50	  	  	$	5,000,001.50	  
	 B. Riley & Co. LLC
	  	 	292,307	  	  	 	6.50	  	  	$	1,899,995.50	  
	 B. Riley & Co. Commission
	  	 	202,154	  	  	 	6.50	  	  	$	1,314,001.00	  
	 Riley Investment Partners
	  	 	44,000	  	  	 	6.50	  	  	$	286,000.00	  
	 Robert Antin Irrevocable Trust 1/1/01
	  	 	76,923	  	  	 	6.50	  	  	$	499,999.50	  
	 Hoak Public Equities
	  	 	153,847	  	  	 	6.50	  	  	$	1,000,005.50	  
	 Palogic Value Fund LP
	  	 	108,000	  	  	 	6.50	  	  	$	702,000.00	  
	 Catalysis Partners LLC
	  	 	269,230	  	  	 	6.50	  	  	$	1,749,995.00	  
	 Catalysis Offshore Ltd
	  	 	115,384	  	  	 	6.50	  	  	$	749,996.00	  
	 Equitec Proprietary Markets
	  	 	384,615	  	  	 	6.50	  	  	$	2,499,997.50	  
	 Pyramid Trading LP
	  	 	384,615	  	  	 	6.50	  	  	$	2,499,997.50	  
	 L. Kevin Dann
	  	 	100,000	  	  	 	6.50	  	  	$	650,000.00	  
	 Michael J. Alpert
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Thomas E. Alpert
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Mark Berman
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Mark Reichenbaum IRA
	  	 	46,154	  	  	 	6.50	  	  	$	300,001.00	  
	 MAR Family LP
	  	 	107,693	  	  	 	6.50	  	  	$	700,004.50	  
	 James English IV Revocable Trust 4/16/91
	  	 	50,000	  	  	 	6.50	  	  	$	325,000.00	  

													
	 Name
	  	Number of Shares	 	  	Price Per
Share	 	  	Aggregate
Purchase Price	 
	 David & Wanda Brown As Tenants
	  	 	75,000	  	  	 	6.50	  	  	$	487,500.00	  
	 Atlas Allocation Fund
	  	 	77,000	  	  	 	6.50	  	  	$	500,500.00	  
	 Don Schenkler
	  	 	7,692	  	  	 	6.50	  	  	$	49,998.00	  
	 Darren Schenkler
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Aaron Quiggle
	  	 	3,846	  	  	 	6.50	  	  	$	24,999.00	  
	 Chris Temple
	  	 	15,384	  	  	 	6.50	  	  	$	99,996.00	  
	 Boldt Partners I LP
	  	 	21,748	  	  	 	6.50	  	  	$	141,362.00	  
	 Boldt Partners II LP
	  	 	9,022	  	  	 	6.50	  	  	$	58,643.00	  
	 Kenneth Silverman
	  	 	10,000	  	  	 	6.50	  	  	$	65,000.00	  
	 PMI Family LP
	  	 	46,153	  	  	 	6.50	  	  	$	299,994.50	  
	 Benchmark Partners LP
	  	 	25,000	  	  	 	6.50	  	  	$	162,500.00	  
	 Grand Slam Caoutak Master Fund Ltd.
	  	 	120,000	  	  	 	6.50	  	  	$	780,000.00	  
	 Intrinsic Edge Capital
	  	 	138,500	  	  	 	6.50	  	  	$	900,250.00	  
		  	  
	  
	 	  				  	  
	  
	 
	 TOTAL
	  	 	4,791,958	  	  				  	$	31,147,727	  
		  	  
	  
	 	  				  	  
	  
	 

 EXHIBIT B 

PLAN OF DISTRIBUTION 
 We are registering shares of common stock on behalf of the selling stockholders. The common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale,
at prices related to the prevailing market prices, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected at various times in one or more of the following transactions, or in other kinds of
transactions: 
  

	 	•	 	 transactions on the NASDAQ Stock Market or on any other national securities exchange or U.S. inter-dealer system of a registered national securities
association on which our common stock and the warrants may be listed or quoted at the time of sale; 

  

	 	•	 	 in the over-the-counter market; 

  

	 	•	 	 in private transactions and transactions otherwise than on these exchanges or systems or in the over-the-counter market; 

 

	 	•	 	 in connection with short sales of shares of our common stock; 

 

	 	•	 	 by pledge to secure or in payment of debt and other obligations; 

 

	 	•	 	 through the writing of options, whether the options are listed on an options exchange or otherwise; 

 

	 	•	 	 in connection with the writing of non-traded and exchange-traded call options, in hedge transactions and in settlement of other transactions in
standardized or over-the-counter options; or 

  

	 	•	 	 through a combination of any of the above transactions. 

 The selling stockholders and their successors, including their transferees, pledgees or donees or their successors, may sell the common stock and the warrants directly to purchasers or through
underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions or commissions from the selling stockholders or the purchasers. These discounts, concessions or commissions as to any particular underwriter,
broker-dealer or agent may be in excess of those customary in the types of transactions involved. 
 In addition, any securities
covered by this prospectus which qualify for sale pursuant to Rule 144 of the Securities Act may be sold under Rule 144 rather than pursuant to this prospectus. 
 We entered into a registration rights agreement for the benefit of the selling stockholders to register the common stock and the warrants under applicable federal and state securities laws. The
registration rights agreement provides for cross-indemnification of the selling stockholders 

  
 B-1

 
and us and our respective directors, officers and controlling persons against specific liabilities in connection with the offer and sale of the common stock and the warrants, including
liabilities under the Securities Act. We will pay substantially all of the expenses incurred by the selling stockholders with respect to the registration of the offering and sale of the common stock and the warrants. 

  
 B-2

 EXHIBIT C 

FORM OF NOTICE OF EFFECTIVENESS OF 
 REGISTRATION STATEMENT 
 [Name and address of Transfer Agent] 

 
  
 Attn:
                            
  

	 	Re:	API Technologies Corp. 

 Ladies and
Gentlemen: 
 We are counsel to API Technologies Corp., a Delaware corporation (the “Company”), and have
represented the Company in connection with that certain Common Stock Purchase Agreement (the “Purchase Agreement”), dated as of June 27, 2011, by and among the Company and the purchasers (the “Purchasers”)
named therein pursuant to which the Company issued to the Purchasers shares (the “Shares”) of its common stock, $0.001 par value. Pursuant to the Purchase Agreement, the Company has also entered into a Registration Rights Agreement
with the Purchasers (the “Registration Rights Agreement”), dated as of June 27, 2011, pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights
Agreement), including the Shares, under the Securities Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration Rights Agreement, on
[                ], 2011, the Company filed a Registration Statement on Form S-3 (File
No. 333-            ) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the resale of the Registrable
Securities which names the Purchasers as selling stockholders thereunder. 
 In connection with the foregoing, we advise you
that the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge that any stop order suspending its
effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and, accordingly, the Registrable Securities are available for resale under the 1933 Act in the manner specified in, and pursuant to
the terms of, the Registration Statement. 
  

			
	Very truly yours,
	
	By: 

  

	cc:	[PURCHASERS] 

  
 C-1

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