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Exhibit 4.4    
    

 
 

WARRANT TO PURCHASE COMMON STOCK    
    

THIS WARRANT AND THE SECURITIES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS. THEY MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE AVAILABILITY OF AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

WARRANT TO PURCHASE COMMON STOCK  

	Number of Shares:	 	75,000 shares
	
Warrant Price:	
 	

$5.00 per share
	
Issuance Date:	
 	

July 1, 2003
	
Expiration Date:	
 	

July 1, 2010

FOR VALUE RECEIVED, 1515 S. Manchester, LLC, a California limited liability company, (hereinafter called the
"Holder") is entitled to purchase from Odetics, Inc., a Delaware corporation (the "Company") the
above referenced number of shares of the Company's Class A Common Stock (the "Common Stock"), at the Warrant Price referenced above, all subject
to adjustment from time to time as described herein. The exercise of this Warrant shall be subject to the provisions, limitations and restrictions contained herein. 

	1.
	Term and Exercise.

        1.1   Term. This Warrant is exercisable in whole or in part (but not as to any fractional share of
Common Stock), at any time and from time to time prior to 5:00 p.m. on the Expiration Date set forth above. 

        1.2   Procedure for Exercise of Warrant.

        (a)   Holder
may exercise this Warrant by delivering the following to the principal office of the Company in accordance with  Section 5.1 hereof: (i) a duly executed Notice of Exercise in substantially the
form attached as  Schedule A, (ii) payment of the Warrant Price then in effect for each of the shares being purchased, as designated in the Notice of
Exercise, and (iii) this Warrant. Payment of the Warrant Price may be in cash, certified or official bank check payable to the order of the Company, or wire transfer of funds to the Company's
account (or any combination of any of the foregoing) in the amount of the Warrant Price for each share being purchased. 

        (b)   Notwithstanding
any provisions herein to the contrary, if the Fair Market Value (as defined below) is greater than the Warrant Price as of the day of exercise, the
Holder may elect to receive, without the payment by the Holder of any additional consideration, shares of Common Stock equal to the value of the "spread" on the shares (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company in accordance with Section 5.1, 

Page 1

 

together
with the Notice of Exercise, in which event the Company shall issue to the Holder hereof a number of shares of Common Stock computed using the following formula: 

X =
Y × (FMV - WP)

        FMV 

	Where:	 	X	=	 	the number of shares of Common Stock to be issued to the Holder pursuant to this net exercise
	

 	
 	

Y	

=	
 	

the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, that portion of the Warrant requested to be exercised
	

 	
 	

FMV	

=	
 	

the Fair Market Value (as of the date of such calculation) of one share of Common Stock
	

 	
 	

WP	

=	
 	

the Warrant Price (as adjusted as of the date of such calculation)

For
purposes of this Warrant, the "Fair Market Value" of one share of the Company's Common Stock as of a particular date shall be determined as follows:
(i) if traded on a national securities exchange or through the Nasdaq Stock Market, the Fair Market Value shall be deemed to be the volume weighted average trading price of the Common Stock on
such exchange for the five trading days immediately prior to the date of exercise indicated in the Notice of Exercise (or if no reported sales took place on
such day, the last date on which any such sales took place prior to the date of exercise); (ii) if traded over-the-counter only and not on the Nasdaq Stock Market, the
Fair Market Value shall be deemed to be the average of the closing bid and asked prices as of five trading days immediately prior to the date of exercise indicated in the Notice of Exercise (or if no
reported sales took place on such day, the last date on which any such sales took place prior to the date of exercise); and (iii) if there is no active public market, the Fair Market Value
shall be the fair market value of the Common Stock as of the date of exercise, as determined in good faith by the Board of Directors of the Company; provided that any such five trading day period
referenced above shall be extended by the number of trading days during such period on which trading in the Company's Common Stock is suspended, by, or not traded on the securities exchange, Nasdaq
Stock Market or over-the-counter market on which the Common Stock is then listed or traded. 

        1.3   Effective Date of Exercise; Delivery of Certificate.

        (a)   In
the event of any exercise of the rights represented by this Warrant, a certificate or certificates for the shares of Common Stock so purchased, registered in the name
of the Holder or such other name or names as may be designated by the Holder, together with any other securities or other property which the Holder is entitled to receive upon exercise of this
Warrant, shall be delivered to the Holder hereof, at the Company's expense, within a reasonable time after the rights represented by this Warrant shall have been so exercised; and, unless this Warrant
has expired or have been exercised in full, a new Warrant representing the number of shares (except a remaining fractional share), if any, with respect to which this Warrant shall not then have been
exercised shall also be issued to the Holder hereof. 

        (b)   The
person in whose name any certificate for shares of Common Stock is issued upon exercise of this Warrant shall for all purposes be deemed to have become the holder of
record of such shares on the date on which the Warrant was surrendered and payment of the Warrant Price was received by the Company, irrespective of the date of delivery of such certificate, except
that, if the date of such surrender and payment is on a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close
of business on the next succeeding date on which the stock transfer books are open. 

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        1.4   Fractional Shares. This Warrant may not be exercised for fractional shares; and no fractional
share of any class or series of the Company's capital stock shall be issued upon exercise of the Warrant. 

        1.5   Redemption. If at any time during the term of this Warrant (a) the closing sale price for
the Company's Common Stock shall be $7.50 per share or more as reported by a national securities exchange, the Nasdaq Stock Market, the OTC Bulletin Board or any other comparable trading market or
quotation system for twenty (20) consecutive trading days then, at any time thereafter, the Company may, at its sole option, redeem the entire Warrant for an aggregate purchase price of One
Dollar ($1.00)(the "Redemption Price"). If the Company desires to exercise its right to redeem the Warrant, it shall give notice to the Holder,
specifying (i) the Redemption Price, (ii) the date the redemption is to be effective (the "Redemption Date"), which date shall be no
earlier than ten (10) business days after the date on which notice is deemed given in accordance with Section 5.1 hereof, (iii) the
place where the Holder shall deliver the Warrant and (iv) that the right to exercise the Warrant shall terminate at 5:00 p.m. on the business day immediately preceding the Redemption
Date. 

On
and after the Redemption Date, the Warrant shall expire and become void, and Holder shall have no further rights under the Warrant except to receive, upon surrender of the Warrant, the Redemption
Price. The Company shall, promptly after presentation and surrender to the Company by or on behalf of the Holder thereof of the Warrant to be redeemed, deliver to Holder a sum of cash equal to the
Redemption Price. 

	2.
	Compliance with Securities Laws.

        2.1   Own Account. The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and
the shares of Common Stock or other securities to which Holder is entitled pursuant to Section 3 hereof (such shares or securities, the
"Warrant Stock") to be issued upon exercise hereof are being acquired solely for the Holder's own account and not as a nominee for any other party, and
for investment, and that the Holder will not offer, sell, or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof or conversion thereof except under
circumstances that will not result in a violation of the Act, or any state securities laws. Upon exercise of this Warrant, the Holder shall, if reasonably requested by the Company, confirm in writing,
in a form reasonably satisfactory to the Company, that the shares of Warrant Stock (and any common stock to be issued upon conversion thereof) so purchased are being acquired solely for the Holder's
own account and not as a nominee for any other party, for investment, and not with a view toward distribution or resale. 

        2.2   Accredited Investor. Holder further acknowledges that it is familiar with the definition of
"accredited investor" in Rule 501 of Regulation D promulgated under the Act and certifies that Holder is an accredited investor as defined in such rule. 

        2.3   Unregistered Securities. Holder understands that neither this Warrant nor the Warrant Stock have
been registered under the Act, and therefore they may not be sold, assigned or transferred unless (i) a registration statement under the Act is in effect with respect thereto or (ii) an
exemption from registration is found to be available to the satisfaction of the Company. 

        2.4   Legends. Holder further acknowledges and agrees that the stock certificates evidencing the
Warrant Stock shall bear a restrictive legend, substantially in the following form (in addition to such other restrictive legends as are required or deemed advisable under the provisions of this
Warrant, any applicable law or regulation or any other agreement to which Holder is a party): 

"THE
SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS (I) THERE
IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, (II) THE COMPANY RECEIVES AN OPINION OF LEGAL 

Page 3

 

COUNSEL
FOR THE HOLDER OF THESE SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (III) THE COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH
TRANSACTION IS EXEMPT FROM REGISTRATION." 

	3.
	Adjustments.

        3.1   Subdivision or Combination of Shares. In case the Company shall at any time subdivide its
outstanding Common Stock into a greater number of shares, the Warrant Price in effect immediately prior to such subdivision shall be proportionately reduced and the number of shares obtainable upon
exercise of this Warrant shall be proportionately increased. Conversely, in case the outstanding Common Stock of the Company shall be combined into a smaller number of shares, the Warrant Price in
effect immediately prior to such combination shall be proportionately increased and the number of shares obtainable upon exercise of this Warrant shall be proportionately decreased. 

        3.2   Dividends in Common Stock, Other Stock or Property. If at any time or from time to time the
holders of Common Stock (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without payment
therefor: 

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

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

        (c)   Common
Stock or additional shares or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination of
shares or similar corporate rearrangement (other than Common Stock issued as a stock split or adjustments in respect of which shall be covered by the terms of  Section 3.1 above) and additional
shares, other securities or property issued in connection with a Change (as defined below) (which shall be
covered by the terms of Section 3.3 below), then and in each such case, the Holder hereof shall, upon the exercise of this Warrant, be entitled
to receive, in addition to the number of shares of Common Stock receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and
property (including cash in the cases referred to in clause (b) above and this clause (c)) which such Holder would hold on the date of such exercise had such Holder been the holder of
record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive such shares or all other additional stock and other securities and property. 

        3.3   Reorganization, Reclassification, Consolidation, Merger or Sale. If any recapitalization,
reclassification or reorganization of the share capital of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its shares
and/or assets or other transaction (including, without limitation, a sale of substantially all of its assets followed by a liquidation) shall be effected in such a way that holders of Common Stock
shall be entitled to receive shares, securities or other assets or property (a "Change"), then, as a condition of such Change, lawful and adequate
provisions shall be made by the Company whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the Common Stock of the Company immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby) such shares, securities or other assets or property as may be issued or payable with respect to or in exchange for the
number of outstanding Common Stock which such Holder would have been entitled to receive had such Holder exercised this Warrant immediately prior to the consummation of such Change. The Company or its
successor shall promptly issue to Holder a new Warrant for such new securities or other property. The new Warrant shall provide for adjustments which shall be as nearly 

Page 4

 

equivalent
as may be practicable to give effect to the adjustments provided for in this Section 3 including, without limitation, adjustments to
the Warrant Price and to the number of securities or property issuable upon exercise of the new Warrant. The provisions of this Section 3.3 shall
similarly apply to successive Changes. 

	4.
	Ownership and Transfer.

        4.1   Ownership of This Warrant. The Company may deem and treat the person in whose name this Warrant
is registered as the holder and owner hereof (notwithstanding any notations of ownership or writing hereon made by anyone other than the Company) for all purposes and shall not be affected by any
notice to the contrary until presentation of this Warrant for registration of any permitted transfers. 

        4.2   Rights of Stockholder. This Warrant shall not entitle its holder to any of the rights of a
stockholder of the Company until the Warrant shall have been exercised and the shares of Warrant Stock purchasable upon the exercise hereof shall have been issued. 

        4.3   Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the
loss, theft, destruction, or mutilation of this Warrant and (a) in the case of loss, theft, or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance
to the Company or (b) in the case of mutilation, on surrender and cancellation of this Warrant, the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and
amount. The Holder shall reimburse the Company for all reasonable expenses incidental to replacement of this Warrant. 

        4.4   Warrant Not Transferable. This Warrant and the rights hereunder are not transferable and/or
assignable, in whole or in part, by the Holder. 

	5.
	Miscellaneous Provisions.

        5.1   Address for Notices. Any notice or other document required or permitted to be given or delivered
to the Holder shall be delivered or forwarded to the Holder at 18800 Von Karman, Irvine, CA 92612, or to such other address or number as shall have been furnished to the Company in writing by the
Holder. Any notice or other document required or permitted to be given or delivered to the Company shall be delivered or forwarded to the Company at 1515 S. Manchester Blvd., Anaheim, California
92802, Attention: President (Facsimile No.: 714/780-7857, with a copy to Dorsey & Whitney LLP, 38 Technology Drive, Irvine, California 92618, Attention: Ellen S. Bancroft, Esq.
(Facsimile No.: 714/424-5554), or to such other address or number as shall have been furnished to Holder in writing by the Company. 

        5.2   Timing of Notices. All notices, requests and approvals required by this Warrant shall be in
writing and shall be conclusively deemed to be given (a) when hand-delivered to the other party, (b) when received if sent by facsimile at the address and number set forth
above; provided that notices given by facsimile shall not be effective, unless either (i) a duplicate copy of such facsimile notice is promptly given by depositing the same in the mail, postage
prepaid and addressed to the party as set forth below or (ii) the receiving party delivers a written confirmation of receipt for such notice by any other method permitted under this paragraph;
and further provided that any notice given by facsimile received after 5:00 p.m. (recipient's time) or on a non-business day shall be deemed received on the next business day;
(c) five (5) business days after deposit in the United States mail, certified, return receipt requested, postage prepaid, and addressed to the party as set forth in Section 5.1
above; or (d) the next business day after deposit with an international overnight delivery service, postage prepaid, addressed to the party as set forth below with next business day delivery
guaranteed; provided that the sending party receives confirmation of delivery from the delivery service provider. 

        5.3   Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the
State of California as applied to agreements among California residents made and to be performed entirely within the State of California, without giving effect to the conflict of law principles
thereof. 

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        5.4   Waiver, Amendments and Headings. This Warrant and any provision hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by both parties (either generally or in a particular instance and either retroactively or prospectively). The headings in this Warrant
are for purposes of reference only and shall not affect the meaning or construction of any of the provisions hereof. 

        5.5   Counterparts. This Warrant may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 

[SIGNATURE
PAGE FOLLOWS] 

Page 6

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer as of the Issuance Date. 

	 	 	COMPANY:
	

 	
 	

ODETICS, INC.
	

 	
 	

By:	

/s/  GREG A. MINER      
 Gregory A. Miner, Chief Executive Officer and Chief Financial Officer

	

 	
 	
HOLDER:
	

 	
 	

1515 S. MANCHESTER, LLC, a California limited liability company
	

 	
 	

By:	

/s/  WILLIAM H. MCFARLAND      

	

 	
 	

Print Name:	

William H. McFarland

	

 	
 	

Title:	

 
	 	 	 	

Page 7

 
 

SCHEDULE A
  
    FORM OF NOTICE OF EXERCISE    
    

[To be signed only upon exercise of the Warrant]

TO BE EXECUTED BY THE REGISTERED HOLDER

TO EXERCISE THE WARRANT  

The undersigned hereby elects to purchase            shares of Class A Common Stock (the "Shares") of
Odetics, Inc. (the "Company") under the Warrant to Purchase Common Stock dated July     , 2003, which the undersigned is
entitled to purchase pursuant to the terms of such Warrant, and [check one]: 

	[    ]	 	Cash Exercise. The undersigned has delivered $                  , the aggregate Warrant Price
for            Shares purchased herewith, in full in cash or by certified or official bank check or wire transfer;
	

[    ]	
 	
Net Exercise. In exchange for the issuance of            shares, the undersigned hereby agrees to surrender the right to
purchase            Shares pursuant to the net exercise provisions set forth in Section 1.2(b) of the Warrant.

        Please
issue a certificate or certificates representing such Shares in the name of the undersigned or in such other name as is specified below and in the denominations as is set forth
below: 

__________________________________________________________________________

[Type name of Holder as it should appear on the stock certificate] 

__________________________________________________________________________

[Requested denominations—if no denomination is specified, a single certificate will be issued] 

The
initial address of such Holder to be entered on the books of the Company shall be: 

________________________________________________

________________________________________________

________________________________________________ 

        The
undersigned hereby represents and warrants that the undersigned is acquiring such shares for his own account for investment purposes only, and not for resale or with a view to
distribution of such shares or any part thereof. 

	 	 	By:	 
	 	 	 	

	 	 	Print Name:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	Dated:	 
	 	 	 	

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Exhibit 4.4

WARRANT TO PURCHASE COMMON STOCK

SCHEDULE A FORM OF NOTICE OF EXERCISEQuickLinks
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Exhibit 4.5    
    

 
 

SECURITIES PURCHASE AGREEMENT    
    

        This Securities Purchase Agreement (the "Agreement") is made as of July 29, 2003 by and among
Odetics, Inc., a Delaware corporation (the "Company"), and the purchasers listed on  Schedule A hereto (each a "Purchaser" and collectively, the
"Purchasers"). 

        1.    Purchase and Sale of the Securities.    Subject to the terms and conditions herein contained, each Purchaser
hereby purchases, and the Company hereby sells to such Purchaser, the number of shares of the Company's Class A Common Stock, par value $0.10 per share (the
"Class A Common Stock"), set forth next to such Purchaser's name on Schedule A attached
hereto at a purchase price of $0.60 per share. In connection with the purchase and sale of the shares of Class A Common Stock hereunder, the Purchasers will receive, for no additional
consideration, warrants, substantially in the form attached hereto at Exhibit A (the "Warrants"),
to acquire the number of shares of Class A Common Stock set forth under the heading "Warrant Shares" on Schedule A (collectively, the
"Warrant Shares"), at an exercise price of $1.50 per share, subject to adjustment as set forth in the Warrants. Concurrently with the execution of this
Agreement, each Purchaser shall deliver to the Company the purchase price (as indicated on Schedule A hereto) for the shares of Class A
Common Stock being purchased by it in cash, check or wire transfer, in each case in immediately available funds, or any combination thereof, and the Company shall deliver to such Purchaser a
certificate representing the shares so purchased and the applicable Warrant. Such delivery of and payment for the shares of Class A Common Stock and the Warrants shall be made at the offices of
Dorsey & Whitney LLP, 38 Technology Drive, Irvine, California 92618 or at such other place as the Purchasers and the Company may agree upon. 

        The
shares of Class A Common Stock set forth on Schedule A hereto (collectively, the
"Shares") and the Warrants are sometimes herein collectively referred to as the "Securities." This
Agreement and the Warrants are sometimes herein collectively referred to as the "Transaction Documents." 

        The
Securities will be offered and sold to the Purchasers without such offers and sales being registered under the Securities Act of 1933, as amended (together with the rules and
regulations of the Securities and Exchange Commission (the "SEC") promulgated thereunder, the "Securities
Act"), in reliance on exemptions therefrom. 

        2.    Representations and Warranties of the Company.    The Company represents and warrants that: 

        (a)   Each
of the Company and its subsidiaries, Iteris, Inc. and MAXxess, Inc. (together, the "Subsidiaries"),
has been duly incorporated and each of the Company and the Subsidiaries is validly existing in good standing as a corporation under the laws of its jurisdiction of incorporation, with the requisite
corporate power and authority to own its properties and conduct its business as now conducted as described in the Company's Annual Report on Form 10-K filed with the SEC on
June 30, 2003 (the "Form 10-K"). 

        (b)   The
Company has the authorized, issued and outstanding capitalization set forth in the Form 10-K (subject to (i) the subsequent issuance of
shares pursuant to options issued or issuable under the Company's stock option plans, employee stock purchase plans, outstanding warrants or other rights to acquire shares described in the
Form 10-K and (ii) the issuance of shares of Class A Common Stock upon conversion of the Class B Common Stock in accordance with the terms of the Company's
Certificate of Incorporation, as amended). 

        (c)   The
Company has the requisite corporate power and authority to execute, deliver and perform its obligations under the Transaction Documents. Each of the Transaction
Documents has been duly and validly authorized by the Company and, when executed and delivered by the Company, will constitute a valid and legally binding agreement of the Company, enforceable against
the Company in accordance with its terms except as the enforcement thereof may be limited by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws
now or hereafter in effect relating to or affecting creditors' rights generally or 

 

(ii) general
principles of equity and the discretion of the court before which any proceeding therefore may be brought (regardless of whether such enforcement is considered in a proceeding at
law or in equity). 

        (d)   The
Shares have been duly authorized and, when issued upon payment thereof in accordance with this Agreement, will have been validly issued, fully paid and
nonassessable. The Warrant Shares have been duly authorized and validly reserved for issuance, and when issued upon exercise of the Warrants in accordance with the terms thereof, will have been
validly issued, fully paid and nonassessable. 

        (e)   No
consent, approval, authorization, license, qualification, exemption or order of any court or governmental agency or body or third party is required for the
performance of the Transaction Documents by the Company or for the consummation by the Company of any of the transactions contemplated thereby, except for such consents, approvals, authorizations,
licenses, qualifications, exemptions or orders (i) as have been obtained, (ii) as are not required to be obtained under the securities laws prior to the date hereof or (iii) which
the failure to obtain would not, individually or in the aggregate, have a material adverse effect on the business, condition (financial or other), properties, prospects or results of operations of the
Company and the Subsidiaries, taken as a whole (any such event, a "Material Adverse Effect"). All such consents, approvals, authorizations, licenses,
qualifications, exemptions and orders that are required to be obtained prior to the date hereof will be in full force and effect as of the date hereof and not be the subject of any pending or, to the
knowledge of the Company, threatened termination. 

        (f)    The
Company is not (i) in material violation of its Certificate of Incorporation or Bylaws (or similar organizational document), (ii) in breach or
violation of any statute, judgment, decree, order, rule or regulation applicable to it or any of its properties or assets, which breach or violation would, individually or in the aggregate, have a
Material Adverse Effect, or (iii) in default (nor has any event occurred which with notice or passage of time, or both, would constitute a default) in the performance or observance of any
obligation, agreement, covenant or condition contained in any material contract, indenture, mortgage, deed of trust, loan agreement, note, lease, franchise agreement, permit, certificate or agreement
or instrument to which it is a party or to which it is subject, which default would have a Material Adverse Effect. 

        (g)   The
execution, delivery and performance by the Company of the Transaction Documents and the consummation by the Company of the transactions contemplated thereby and the
fulfillment of the terms thereof will not (i) violate, conflict with or constitute or result in a breach of or a default under (or an event that, with notice or lapse of time, or both, would
constitute a breach of or a default under) any of (A) the terms or provisions of any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, franchise agreement, permit,
certificate or agreement or instrument to which the Company is a party or to which any of its properties or assets are subject, (B) the Certificate of Incorporation or Bylaws of the Company or
(C) any statute, judgment, decree, order, rule or regulation of any court or governmental agency or other body applicable to the Company or its properties or assets or (ii) result in the
imposition of any lien upon or with respect to any of the properties or assets now owned or hereafter acquired by the Company, which violation, conflict, breach, default or lien (as indicated in
subsections (i) and (ii) above) would have a Material Adverse Effect. 

        (h)   Other
than actions related to past due trade payables and other outstanding payables, there is not pending or, to the knowledge of the Company, threatened any action,
suit, proceeding, inquiry or investigation, governmental or otherwise, to which any of the Company or the Subsidiaries is a party, or to which their respective properties or assets are subject, before
or brought by any court, arbitrator or governmental agency or body, that, if determined adversely to 

2

 

the
Company or any such Subsidiary, would, individually or in the aggregate, have a Material Adverse Effect. 

        (i)    The
Company and the Subsidiaries own or possess adequate licenses or other rights to use all patents, trademarks, service marks, trade names, copyrights,
know-how and other intellectual property rights that are necessary to conduct their businesses as described in the Form 10-K. None of the Company or the Subsidiaries has
received any written notice of infringement of (or knows of any such infringement of) asserted rights of others with respect to any patents, trademarks, service marks, trade names, copyrights,
know-how or other intellectual property rights that, if such assertion of infringement or conflict were sustained, would, individually or in the aggregate, have a Material Adverse Effect. 

        (j)    None
of the Company, the Subsidiaries or any of their respective Affiliates (as defined in Rule 501(b) of Regulation D under the Securities Act) directly,
or through any agent, engaged in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) in connection with the offering of
the Securities or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. Assuming the accuracy of the representations and warranties of the
Purchasers in Section 3 hereof, it is not necessary to register any of the Securities under the Securities Act to offer, sell and deliver the
Securities to the Purchasers in the manner contemplated by this Agreement. 

        (k)   The
Company does not know of any claims for services, either in the nature of a finder's fee or financial advisory fee with respect to the offering of the Shares and the
transactions contemplated by the Transaction Documents. 

        3.    Representations and Warranties of the Purchasers.    Each Purchaser represents, warrants and covenants as
follows: 

        (a)   The
Securities to be acquired by it hereunder (including the Warrant Shares that it may acquire upon exercise of the Warrants) are being acquired for such Purchaser's
own account for investment (and/or on behalf of managed accounts who are purchasing solely for their own accounts for investment) and with no intention of distributing or reselling such Securities
(including the Warrant Shares that it may acquire upon exercise of the Warrants, as the case may be) or any part thereof or interest therein in any transaction which would be in violation of the
securities laws of the United States of America or any State, without prejudice, however, to such Purchaser's right, subject to the provisions of this Agreement, at all times to sell or otherwise
dispose of all or any part of such Shares or Warrant Shares under an effective registration statement under the Securities Act and in compliance with applicable state securities laws or under an
exemption from such registration, and subject, nevertheless, to the disposition of such Purchaser's property being at all times within its control. 

        (b)   Such
Purchaser understands that the Securities (including the Warrant Shares that it may acquire upon exercise of the Warrants) have not been registered under the
Securities Act and may not be offered, resold, pledged or otherwise transferred except (i) pursuant to an exemption from registration under the Securities Act (and, if requested by the Company,
based upon an opinion of counsel acceptable to the Company) or pursuant to an effective registration statement under the Securities Act
and (ii) in accordance with all applicable securities laws of the states of the United States and other jurisdictions. 

        (c)   Such
Purchaser agrees to the imprinting of a legend, substantially in the following form, on the Securities (including the Warrant Shares that it may acquire upon
exercise of the Warrants) together with any other legends required under applicable state securities laws): 

These securities have not been registered under the Securities Act of 1933, as amended. They may not be sold, offered for sale, pledged, hypothecated  

3

 

 or otherwise transferred (i) in the absence of a registration statement in effect with respect to the securities under such Act or (ii) unless transferred pursuant to an exemption from
the Act, and assurances (including but not limited to an opinion of counsel), if so required by the company, are provided to the company, satisfactory in form and content to the company, stating that
such sale or transfer is exempt from the registration requirements of such Act.

        The
legend set forth above may be removed if and when the Shares or the Warrant Shares, as the case may be, are sold pursuant to an effective registration statement under the Securities
Act or in the opinion of counsel reasonably acceptable to the Company experienced in the area of United States Federal securities laws such legends are no longer required under applicable requirements
of the Securities Act. The Shares and the Warrant Shares shall also bear any other legends required by applicable Federal or state securities laws, which legends may be removed when in the opinion of
counsel to the Company experienced in the applicable securities laws, the same are no longer required under the applicable requirements of such securities laws. The Company agrees that it will provide
each Purchaser, upon request, with a substitute certificate, not bearing such legend at such time as such legend is no longer applicable. Each Purchaser agrees that, in connection with any transfer of
the Shares or the Warrant Shares by it pursuant to an effective registration statement under the Securities Act, such Purchaser will comply with all prospectus delivery requirements of the Securities
Act. The Company makes no representation, warranty or agreement as to the availability of any exemption from registration under the Securities Act with respect to any resale of the Shares or the
Warrant Shares. 

        (d)   Such
Purchaser is an "accredited investor" within the meaning of Rule 501(a) of Regulation D under the Securities Act. 

        (e)   Such
Purchaser or its general partner (i) has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Securities, (ii) has been represented by counsel, (iii) has evaluated the merits and risks of such investment and is able to
bear the economic risk of such investment and (iv) at the present time, is able to afford a complete loss of such investment. 

        (f)    The
purchase of the Securities to be purchased by such Purchaser has been duly and properly authorized and this Agreement has been duly executed and delivered by it or
on its behalf and constitutes the valid and legally binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights generally and to general principals of equity; and (ii) the purchase of
the Securities to be purchased by it does not conflict with or violate its limited partnership agreement, operating agreement or other charter documents, or any law, regulation or court order
applicable to it. 

        (g)   Neither
such Purchaser nor any of its directors, officers, employees, agents, partners, members, or controlling persons has taken, directly or indirectly, any actions
designed, or might reasonably be expected to cause or result, under the Securities Act or the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise, in, or that has constituted, stabilization, or manipulation of the price of the Class A Common Stock. 

        (h)   Such
Purchaser acknowledges it has reviewed the Form 10-K and further acknowledges that it has been afforded (i) the opportunity to ask such
questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of
investing in the Securities; and (ii) access to information about the Company and the Company's financial condition, results of 

4

 

operations,
business, properties, management and prospects sufficient to enable it to evaluate its investment in the Securities. 

        (i)    Such
Purchaser understands and acknowledges that (i) the Securities are offered and sold without registration under the Securities Act in a private placement that
is exempt from the registration provisions of the Securities Act and (ii) the availability of such exemption depends in part on, and that the Company and its counsel will rely upon, the
accuracy and truthfulness of the foregoing representations. 

        4.    Registration.    Within 30 days from the date hereof, the Company shall use its best efforts to prepare
and file with the SEC a registration statement covering the resale of the Shares and the Warrant Shares (collectively, the "Registrable Securities") for
an offering to be made on a continuous basis pursuant to Rule 415 (the "Registration Statement"). The Registration Statement required hereunder
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). The Company shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act until all Registrable Securities
covered by such Registration Statement have been sold or may be sold without volume restrictions pursuant to Rule 144(k) as determined by the counsel reasonably acceptable to the Company
pursuant to a written opinion to such effect addressed and acceptable to the Company's transfer agent. 

        5.    Furnishing of Information.    As long as any Purchaser owns Securities, the Company covenants 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 the Exchange Act. Upon the request
of any such person, the Company shall deliver to such person a written certification of a duly authorized officer as to whether it has complied with the preceding sentence. 

        6.    Notices.    All communications hereunder shall be in writing and shall be sent (a) if to the Company, at
the addresses set forth below, or (b) if to a Purchaser, to the address(es) set forth on the signature page hereto, or (c) to such other address as such party may designate by ten days
advance written notice to the other parties hereto. 

If
to the Company: 

Odetics, Inc.

1515 S. Manchester Avenue

Anaheim, CA 92802

Attention: Chief Executive Officer

Facsimile: (714) 780-7857 

with
a copy to: 

Dorsey
& Whitney LLP

38 Technology Drive

Irvine, California 92618

Attention: Ellen S. Bancroft, Esq.

Facsimile: (714) 424-5554 

        All
such notices and communications shall be deemed to have been duly given: (i) when delivered by hand, if personally delivered; (ii) five business days after being
deposited in the mail, postage prepaid, if mailed certified mail, return receipt requested; (iii) one business day after being timely delivered to a next-day air courier
guaranteeing overnight delivery; (iv) the date of transmission if sent via facsimile to the facsimile number as set forth in this Section or the signature page hereof prior to 6:00 p.m.
on a business day, or (v) the business day following the date of transmission if sent via facsimile at a facsimile number set forth in this Section or on the signature page hereof after
6:00 p.m. 

5

 

or
on a date that is not a business day. Change of a party's address or facsimile number may be designated hereunder by giving notice to all of the other parties hereto in accordance with this
Section. 

        7.    Successors.    This Agreement shall inure to the benefit of and be binding upon the Purchasers and the Company
and their respective successors and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person any legal or equitable right,
remedy or claim under or in respect of this Agreement, or any provisions herein contained. This Agreement and all conditions and provisions hereof being intended to be and being for the sole and
exclusive benefit of such persons and for the benefit of no other person. Neither the Company nor any Purchaser may assign this Agreement or any rights or obligation hereunder without the prior
written consent of the other parties. 

        8.    No Waiver; Modifications in Writing.    No failure or delay on the part of the Company or any Purchaser in
exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to the Company or any Purchaser
at law or in equity or otherwise. No waiver of or consent to any departure by the Company or any Purchaser from any provision of this Agreement shall be effective unless signed in writing by the party
entitled to the benefit thereof. Except as otherwise provided herein, no amendment, modification or termination of any provision of this Agreement shall be effective unless signed in writing by or on
behalf of each of the Company and the relevant Purchaser. 

        9.    Entire Agreement.    This Agreement, together with the other Transaction Documents, constitutes the entire
agreement among the parties hereto and supersedes all prior agreements, understandings and arrangements, oral or written, among the parties hereto with respect to the subject matter hereof and
thereof. 

        10.    Severability.    If any provision of this Agreement is held to be invalid or unenforceable in any respect, the
validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby. 

        11.    Applicable Law.    The validity and interpretation of this agreement, and the terms and conditions set forth
herein shall be governed by and construed in accordance with the laws of the state of California, without giving effect to provisions relating to conflicts of law to the extent the application of the
laws of another jurisdiction would be required thereby. 

        12.    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 

        13.    Attorney's Fees.    If either party to this Agreement shall bring any action, suit, counterclaim, appeal,
arbitration, or mediation for any relief against the other, declaratory or otherwise, to enforce the terms hereof or to declare rights hereunder, the losing party shall pay to the prevailing party's
reasonable attorneys' fees and costs incurred in bringing and prosecuting such action and/or enforcing any judgment, order, ruling or award. 

[SIGNATURE
PAGE FOLLOWS] 

6

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 

	 	 	COMPANY:
	

 	
 	

Odetics, Inc.
	

 	
 	

By:	

 
	 	 	 	 	
 Gregory A. Miner

Chief Executive Officer
	

 	
 	
PURCHASERS:
	

 	
 	
SACC PARTNERS
	

 	
 	

By:	

 
	 	 	 	 	
 Bryant Riley,

General Partner

	

 	
 	

Address:	

11550 Santa Monica Blvd., Suite 750

Los Angeles, CA 90025
	 	 	 	Fax No.:	(310) 966-1448
	

 	
 	

State of incorporation (if corporate purchaser) or state of residence (if individual purchaser): California
	

 	
 	

PLEIADES INVESTMENT PARTNERS, L.P.

	

 	
 	

By:	

 
	 	 	 	 	
 Edward F. Bowman,

President, PNC GPI, Inc.

	

 	
 	

Address:	

6022 West Chester Pike

Edgemont, PA 19028
	 	 	 	Fax No.:	(610) 640-0401
	

 	
 	

State of incorporation (if corporate purchaser) or state of residence (if individual purchaser): Delaware
	

 	
 	

B. RILEY & CO.

	

 	
 	

By:	

 
	 	 	 	 	
 Bryant Riley,

Chairman

	

 	
 	

Address:	

11550 Santa Monica Blvd., Suite 750

Los Angeles, CA 90025
	 	 	 	Fax No.:	(310) 966-1448
	 	 	 	 

7

 

	

 	
 	

State of incorporation (if corporate purchaser) or state of residence (if individual purchaser): California
	

 	
 	

 BRYANT RILEY
	

 	
 	

Address:	

11550 Santa Monica Blvd., Suite 750

Los Angeles, CA 90025
	 	 	 	Fax No.:	(310) 966-1448
	

 	
 	

State of incorporation (if corporate purchaser) or state of residence (if individual purchaser): California
	

 	
 	

 JEREMY NOWAK & WILLIAM NOWAK
	

 	
 	

Address:	

6212 Shore Acres Drive, N.W.

Bradenton, FL 34209
	 	 	 	Fax No.:	(310) 966-1448
	

 	
 	

State of incorporation (if corporate purchaser) or state of residence (if individual purchaser): Florida
	

 	
 	

WACHOVIA SECURITIES, LLC C/F

GREGORY A. MINER, IRA

	

 	
 	

By:	

 
	 	 	 	 	
 Gregory A. Miner

	

 	
 	

Address:	

One New York Plaza, 10th Floor

New York, NY 10292
	 	 	 	 	(Tax Id No.: 34-1542819)
	 	 	 	Fax No.:	(212) 778-7589
	

 	
 	

State of incorporation (if corporate purchaser) or state of residence (if individual purchaser): California
	

 	
 	

 TOM KELLEHER
	

 	
 	

Address:	

11550 Santa Monica Blvd., Suite 750

Los Angeles, CA 90025
	 	 	 	Fax No.:	(310) 966-1448
	

 	
 	

State of incorporation (if corporate purchaser) or state of residence (if individual purchaser): California

8

 
 
 

Schedule A
  
  
  PURCHASERS    
    

	Name
 
	 	No. of Shares

of Class A

Common

Stock
	 	Price

Per

Share
	 	Aggregate

Purchase Price
	 	No. of

Warrant

Shares
	 	Warrant

Exercise

Price

	Sacc Partners	 	1,833,333	 	$	0.60	 	$	1,099,999.80	 	183,333	 	$	1.50
	

Pleiades Investment Partners R L.P.	
 	

583,333	
 	
$	

0.60	
 	
 	

349,999.80	
 	

58,333	
 	
$	

1.50
	

B. Riley & Co.	
 	

416,667	
 	
$	

0.60	
 	
 	

250,000.20	
 	

41,667	
 	
$	

1.50
	

Bryant Riley	
 	

333,333	
 	
$	

0.60	
 	
 	

199,999.80	
 	

33,333	
 	
$	

1.50
	

Jeremy Nowak and William Nowak	
 	

250,000	
 	
$	

0.60	
 	
 	

150,000.00	
 	

25,000	
 	
$	

1.50
	

Wachovia Securities, LLC C/F

Gregory A. Miner, IRA	
 	

166,667	
 	
$	

0.60	
 	
 	

100,000.20	
 	

16,667	
 	
$	

1.50
	

Tom Kelleher	
 	

83,333	
 	
$	

0.60	
 	
 	

49,999.80	
 	

8,333	
 	
$	

1.50
	
TOTAL	
 	

3,666,666	
 	
 	

 	
 	
$	

2,199,999.60	
 	

366,666	
 	
 	

 

9

 
 
 

Exhibit A    
    

 
 

FORM OF WARRANT
  (attached hereto)    

10

QuickLinks

Exhibit 4.5

SECURITIES PURCHASE AGREEMENT

Schedule A PURCHASERS

Exhibit A

FORM OF WARRANT (attached hereto)

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