Document:

exv10w69

EXHIBIT 10.69

SUBSCRIPTION AGREEMENT

     THIS SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of September 30, 2009, by and between
Irvine Sensors Corporation, a Delaware corporation (the “Company”), and the subscriber identified
on the signature page hereto (the “Subscriber”).

     WHEREAS, the Company is offering (the “Offering”) units (the “Units”), each of which is
comprised of one share of a newly-created Series B Convertible Preferred Stock of Irvine Sensors
Corporation, a Delaware corporation (the “Company” or “Irvine Sensors”) with a stated value of
$1,000 (the “Series B Stock”) as described in the Certificate of Designations of Rights,
Preferences, Privileges and Limitations attached hereto as Exhibit A (“Certificate of
Designations”), plus a five-year warrant to purchase the number of shares of Irvine Sensors’ Common
Stock (the “Common Stock”) equal to thirty percent (30%) of the number of shares of Common Stock
issuable from conversion of one share of Series B Stock (at the initial conversion price) at the
exercise price of the greater of 110% of the fair market value of one share of Common Stock as of
the closing with respect to the applicable Unit as determined by Nasdaq or $0.50 per share,
substantially in the form attached hereto as Exhibit B (the “Investor Warrants” or the “Warrants”).
The purchase price for each Unit will be $700. The Units will only be offered and sold to a
limited number of subscribers who are “Accredited Investors,” as such term is defined hereinafter,
in accordance with the terms and conditions set forth in the confidential private placement
memorandum dated August 25, 2009 (the “Confidential Placement Memorandum” or the “Memorandum”) that
was furnished by the Company to the Subscriber. Capitalized terms used but not otherwise defined
in this Agreement shall have the meanings ascribed to such terms in the Memorandum.

     WHEREAS, the Company and the Subscriber are executing and delivering this Agreement in
reliance upon an exemption from securities registration afforded by the provisions of Section 4(2)
and/or Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange
Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”),
and similar exemptions under applicable state securities laws.

     WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Company shall issue and sell to the Subscriber, as provided herein, and the Subscriber,
shall purchase the Units. The Subscriber desires to acquire the number of Units set forth on the
signature page hereto pursuant to the Confidential Placement Memorandum and the terms and
conditions of this Agreement. The Units, the Series B Stock and Investor Warrants contained
therein, and the shares of Common Stock issuable upon conversion of the Series B Stock or exercise
of the Investor Warrants, are collectively referred to herein as the “Securities.”

     NOW, THEREFORE, in consideration of the mutual covenants and other agreements contained in
this Agreement the Company and the Subscriber hereby agree as follows:

          1. (a) Subscription. In accordance with the terms and conditions of the Confidential
Placement Memorandum, the Subscriber, intending to be legally bound, hereby irrevocably subscribes
for and agrees to purchase the number of Units set forth on the signature page hereto and to pay
the purchase price for said Units in immediately available funds contemporaneously with the
execution and delivery of this Subscription Agreement. The execution and delivery of this
Agreement by the Subscriber will not constitute an agreement between the Subscriber and the Company
until this Agreement has been accepted by the Company evidenced by receipt by the Subscriber of an
acceptance page of this Agreement signed by the Company, and then subject to the terms and
conditions of this Agreement. The Subscriber understands that acceptance or rejection, in whole or
in part, by the Company and/or the Placement Agent (as defined herein) of the subscription and
agreement of the Subscriber to purchase the Units is within the sole and absolute discretion of the
Company and/or the Placement Agent, and the Company may reject any subscription in whole or in
part, for any reason or without reason. Likewise, the Subscriber understands acknowledges and
agrees that acceptance by the Company and/or the Placement Agent of any subscription of a
Subscriber, in whole or in part, is predicated upon the representations and warranties of the
Subscriber as set forth hereinafter and that SUBSCRIPTIONS, ONCE RECEIVED BY THE

 

 

COMPANY AND/OR THE PLACEMENT AGENT, ARE IRREVOCABLE BY THE SUBSCRIBER, AND, THEREFORE, MAY NOT BE
WITHDRAWN.

               (b) Closing Date. The closing of the purchase and sale of the Units hereunder and
under other Subscription Agreements (the “Closing”) shall be held at the offices of Dorsey &
Whitney LLP, 38 Technology Drive, Suite 100, Irvine, California 92618 after subscriptions for the
Units have been accepted by the Company (the date of the Closing being hereinafter referred to as
the “Closing Date”). Subscriptions will not be refunded unless the Company rejects the
Subscriber’s subscription, in whole or in part, in which case, the refund shall be without
interest.

               (c) Deliveries. The Subscriber shall deliver at the Closing the Omnibus Signature Page
to this Agreement, which the Company shall be authorized, upon satisfaction of the conditions set
forth in Sections 6 and 7 hereof, to attach to an execution version of the Investor Warrant, in
substantially the form attached to the Confidential Placement Memorandum with such minor
modifications thereto, if any, as the Company deems are necessary and appropriate and are approved
by the Placement Agent.

          2. Subscriber’s Representations and Warranties. The Subscriber hereby represents and
warrants to and agrees with the Company that:

               (a) Information on Company. The Subscriber acknowledges receipt of the Confidential
Placement Memorandum. The Subscriber has had access at the EDGAR Website of the Commission to the
Company’s Annual Report on Form 10-K for the year ended September 28, 2008, and all periodic and
current reports filed with the Commission thereafter (hereinafter referred to as the “Reports”).
The Subscriber has had the opportunity to review information regarding the Company, its business,
operations, financial condition and the terms and conditions of the Securities, and considered all
factors Subscriber deems material in deciding on the advisability of investing in the Securities.
The offer to sell the Securities to the Subscriber was communicated to the Subscriber by the
Company in such manner that the Subscriber was able to ask questions of and received answers from
the Company or a person acting on the Company’s behalf concerning the terms and conditions of this
transaction as well as to obtain any information requested by the Subscriber. Any questions raised
by the Subscriber or its representatives concerning the transactions contemplated by this Agreement
have been answered to the satisfaction of the Subscriber and its representatives. The Subscriber
can fend for itself, can bear the economic risk of its investment and has such knowledge and
experience in financial or business matters that it is capable of evaluating the merits and risks
of the investment in the Securities. Except as set forth in the Confidential Placement Memorandum
or this Agreement, no representations or warranties have been made to the Subscriber by the Company
or any agent, employee or affiliate of the Company and in entering into this Agreement, the
Subscriber is not relying on any information, other than that which is contained in the
Confidential Placement Memorandum and the results of any independent investigation by the
Subscriber.

               (b) Information on Subscriber. The Subscriber is, and will be at the time of issuance
of the Securities, an “accredited investor”, as such term is defined in Regulation D promulgated by
the Commission under the Securities Act, is experienced in investments and business matters, has
made investments of a speculative nature and has purchased securities of United States
publicly-owned companies in private placements in the past and has such knowledge and experience in
financial, tax and other business matters as to enable the Subscriber to utilize the information
made available by the Company to evaluate the merits and risks of and to make an informed
investment decision with respect to the proposed purchase, which represents a speculative
investment. The Subscriber is not a broker-dealer under Section 15 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) or an officer, director or affiliate of the Company
provided, however, that for purposes of this Section 2(b) an “affiliate” shall not include a
stockholder of the Company owning less than 5% of the outstanding common stock of the Company. The
Subscriber has the authority and is duly and legally qualified to purchase and own the Securities.
The Subscriber is able to bear the risk of such investment for an indefinite period and to afford a
complete loss thereof. The information set forth on the signature page hereto regarding the
Subscriber is accurate. The information set forth in Schedule 1 hereto is correct in all respects.

               (c) Purchase of Securities. The Subscriber is acquiring the Securities in the
ordinary course of its business as principal for its own account, and not as nominee, for
investment only and not with a view toward, or for resale in connection with, the public sale or
any distribution thereof. The Subscriber

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does not have any contract, undertaking, agreement, understanding or arrangement, directly or
indirectly, with any Person to distribute, sell, transfer or pledge to such Person, or anyone else,
all or any part of the Securities, and the Subscriber has no present plan to enter into any such
contract, undertaking, agreement, understanding or arrangement. The Subscriber further agrees to
execute and deliver any further investment certificates as counsel to the Company deems necessary
or advisable to comply with state or federal securities laws. The Subscriber understands that it
shall not have any of the rights of a stockholder with respect to the Series B Stock or any shares
of Common Stock issuable upon conversion of the Series B Stock or exercise of the Investor Warrants
until such Securities are issued pursuant to the terms thereof.

               (d) Compliance with Securities Act. The Subscriber understands and agrees that the
Securities have not been registered under the Securities Act or any applicable state securities
laws, by reason of their issuance in a transaction that does not require registration under the
Securities Act (based on the accuracy of the representations and warranties of the Subscriber
contained herein), and that such Securities may not be sold, assigned or transferred and must be
held indefinitely in the absence of (i) an effective registration statement under the Act and
applicable state securities laws with respect thereto or (ii) an opinion of counsel satisfactory to
the Company that such registration is not required. The Subscriber understands that the Company is
under no obligation to register the Securities.

               (e) Securities Legend. The Securities shall bear the following or similar legend (in
addition to such other restrictive legends as are required or deemed advisable under any applicable
law or any other agreement to which the Company is a party):

     “THE TRANSFER OF THIS SECURITY IS SUBJECT TO RESTRICTIONS
CONTAINED HEREIN. THIS SECURITY HAS BEEN ISSUED IN RELIANCE UPON
THE REPRESENTATION OF PAYEE THAT IT HAS BEEN ACQUIRED FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TOWARDS THE RESALE OR OTHER
DISTRIBUTION THEREOF. THIS SECURITY HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS
AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, ASSIGNED,
HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE
SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED. ”

               (f) Common Stock Legend. The Common Stock certificates for any shares of Common Stock
issued pursuant to conversion of the Series B Stock or upon exercise of the Investor Warrants shall
bear the following or similar legend (in addition to such other restrictive legends as are required
or deemed advisable under any applicable law or any other agreement to which the Company is a
party):

     “THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE
SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS (A) THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, AND APPLICABLE STATE
SECURITIES LAWS, COVERING ANY SUCH TRANSACTION INVOLVING SAID
SECURITIES OR (B) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY STATING THAT SUCH TRANSACTION IS EXEMPT
FROM REGISTRATION. ”

               (g) Communication of Offer. The offer to sell the Securities was directly
communicated to the Subscriber by the Company. At no time was the Subscriber presented with or
solicited by any
leaflet, advertisement, article, notice or other communication published in any newspaper,
magazine, or similar

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media or broadcast over television or radio, or any other form of general
advertising, or solicited or invited to attend a promotional meeting or any seminar or meeting by
any general solicitation or general advertising.

               (h) Authority; Enforceability. If the Subscriber is an entity, it is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization with
the requisite corporate, limited liability company or partnership power and authority to enter into
and to consummate the transactions contemplated by this Agreement and otherwise to carry out its
obligations hereunder. This Agreement has been duly authorized, executed and delivered by the
Subscriber and is a valid and binding agreement enforceable 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
principles of equity; and Subscriber has full corporate power and authority necessary to enter into
this Agreement and to perform its obligations hereunder.

               (i) No Governmental Review. The Subscriber understands that no United States federal
or state agency or any other governmental or state agency has passed on or made recommendations or
endorsement of the Securities or the fairness or suitability of the investment in the Securities
nor have such authorities passed upon or endorsed the merits of the offering of the Securities.
The Subscriber understands that neither legal counsel to the Company, the Placement Agent, nor its
counsel has independently verified the information concerning the Company included in the
Memorandum or herein, all of which has been provided by the Company, nor has such legal counsel
passed upon the adequacy or accuracy of the Memorandum. No independent third party, such as an
investment banking firm, the Placement Agent, or other expert in evaluating businesses or
securities, has made an evaluation of the economic potential of the Company.

               (j) Certain Trading Activities. The Subscriber has not directly or indirectly, nor
has any Person acting at the direction of the Subscriber, engaged in any transactions in the
securities of the Company (including, without limitation, any short sales involving the Company’s
securities) since the earlier to occur of (i) the time the Subscriber was first contacted by the
Company or any other Person regarding the investment in the Company and (ii) the 30th
day prior to the date of this Agreement. The Subscriber covenants that neither it nor any Person
acting at the direction of the Subscriber will engage in any transactions in the securities of the
Company (including short sales) after the date hereof and prior to the date that the transactions
contemplated by this Agreement are publicly disclosed.

               (k) Correctness of Representations. The Subscriber represents as to the Subscriber
that the foregoing representations and warranties are true and correct as of the date hereof and,
unless the Subscriber otherwise notifies the Company prior to the Closing Date shall be true and
correct as of the Closing Date and as of the issuance date of each of the Securities.

          3. Company Representations and Warranties. The Company represents and warrants to and
agrees with the Subscriber that:

               (a) Due Incorporation. 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 its properties and to carry on its business as disclosed in the Reports.
The Company is duly qualified as a foreign corporation to do business and is in good standing in
California.

               (b) Outstanding Stock. All issued and outstanding shares of capital stock of the
Company have been duly authorized and validly issued and are fully paid and nonassessable.

               (c) Authority; Enforceability. This Agreement, and any other agreements delivered
together with this Agreement or in connection herewith (collectively “Transaction Documents”) have
been duly authorized, executed and delivered by the Company and are valid and binding agreements
enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors’ rights generally and to general principles of equity. The
Company has full corporate power and authority necessary to enter into and deliver the
Transaction Documents and to perform its obligations thereunder.

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               (d) Consents. No consent, approval, authorization or order of any court, governmental
agency or body or arbitrator having jurisdiction over the Company is required for the execution by
the Company of the Transaction Documents and compliance and performance by the Company of its
obligations under the Transaction Documents, including, without limitation, the issuance and sale
of the Securities, other than the filing by the Company of a Notice of Sale of Securities on Form D
with the Commission under Regulation D of the Securities Act, any applicable Blue Sky filings, or
otherwise as may be required by The Nasdaq Stock Market. The Transaction Documents and the
Company’s performance of its obligations thereunder have been approved by the Company’s board of
directors.

               (e) No Violation or Conflict. Neither the issuance and sale of the Securities nor the
performance of the Company’s obligations under this Agreement and all other agreements entered into
by the Company relating thereto by the Company will violate, conflict with, result in a breach of,
or constitute a default under (A) the certificate of incorporation or bylaws of the Company, (B) to
the Company’s knowledge, any decree, judgment, order, law, treaty or regulation applicable to the
Company of any court, governmental agency or body, or arbitrator having jurisdiction over the
Company, or (C) the terms of any material bond, debenture, note or other evidence of indebtedness,
agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other
instrument to which the Company is a party or by which it is bound, except the violation, conflict,
breach, or default of which would not have a Material Adverse Effect. For purposes of this
Agreement, a “Material Adverse Effect” shall mean a material adverse effect on the financial
condition, results of operations, properties or business of the Company and its Subsidiaries taken
as a whole. For purposes of this Agreement, “Subsidiary” means, with respect to any entity at any
date, any corporation, limited or general partnership, limited liability company, trust, estate,
association, joint venture or other business entity) of which more than 50% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of
the board of directors or other managing body of such entity, (ii) in the case of a partnership or
limited liability company, the interest in the capital or profits of such partnership or limited
liability company or (iii) in the case of a trust, estate, association, joint venture or other
entity, the beneficial interest in such trust, estate, association or other entity business is, at
the time of determination, owned or controlled directly or indirectly through one or more
intermediaries, by such entity.

               (f) The Securities. The Securities upon issuance in accordance with
their respective terms:

                    (i) will be, free and clear of any security interests, liens, claims or other encumbrances,
subject to restrictions upon transfer set forth herein, under the Securities Act and any applicable
state securities laws;

                    (ii) have been, or will be, duly and validly authorized, duly and validly issued, and, in the
case of the Series B Stock and the Common Stock issuable upon conversion of the Series B Stock and
the exercise of the Investor Warrants, fully paid and nonassessable;

                    (iii) will not have been issued or sold in violation of any preemptive or other similar rights
of the holders of any securities of the Company;

                    (iv) will not subject the holders thereof to personal liability by reason of being such
holders; and

                    (v) will have been issued in reliance upon an exemption from the registration requirements of
and will not result in a violation of Section 5 under the Securities Act.

               (g) Reporting Company. The Company is a publicly-held company subject to reporting
obligations pursuant to Section 13 of the Exchange Act and has a class of common shares registered
pursuant to Section 12(g) of the Exchange Act. Pursuant to the provisions of the Exchange Act, the
Company has timely filed all reports and other materials required to be filed thereunder with the
Commission during the preceding twelve months.

               (h) No General Solicitation. Neither the Company, nor any of its affiliates, nor to
its knowledge, any person acting on its or their behalf, has engaged in any form of general

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solicitation or general advertising (within the meaning of Regulation D under the 1933 Act) in
connection with the offer or sale of the Securities.

               (i) Correctness of Representations. The Company represents that the foregoing
representations and warranties are true and correct as of the date hereof in all material respects,
and, unless the Company otherwise notifies the Subscribers prior to the Closing Date, shall be true
and correct in all material respects as of the Closing Date.

          4. Escrow and Use of Purchase Price. The subscription payments made pursuant hereto
prior to the Closing of the Offering will be deposited by the Placement Agent in an escrow account
at a commercial bank or trust company of the Placement Agent’s choosing and agreeable to the
Company. No interest will be earned by the Subscriber on subscription payments held in any escrow
account. If for any reason the Closing of the purchase and sale of the Units does not take place,
the subscription payment will be returned to the Subscriber without interest. Upon receipt of the
Agreement and the subscription payment, and upon acceptance of the subscription by the Company, the
subscription payments shall belong to the Company. If the subscription is not accepted by the
Company, then this Agreement will be null and void and the subscription payment will be returned to
the Subscriber without interest.

          5. Securities Law Disclosures. The Company may in its sole discretion, following the
Closing Date, (i) issue a press release and/or file a Current Report on Form 8-K disclosing the
transactions contemplated hereby and (ii) make such other disclosures, filings and notices in the
manner and time required by the Commission, any state securities commission, any national
securities exchange or Nasdaq.

          6. Registration Rights. The Company shall file a registration statement with the
Commission on Form S-3 (or a successor form) under the Securities Act for the resale of the
maximum number of shares of Common Stock issuable upon conversion of the Series B Stock as may
be permitted under Instruction IB6(a) of the General Instructions to Form S-3 as soon as possible
following the final closing of the Offering, but in no event later than 10 business days after
thereafter (or such additional time as may be necessary to obtain the consent of the Company’s
current and prior independent auditors). The Company shall use its reasonable business efforts to
cause such registration statement to become effective as soon as possible following the filing of
such registration statement and to maintain the effectiveness of such registration (in as much as
is within the Company’s power) until the earlier of (i) the date on which all of such Common Stock,
together with any shares of Common Stock issued or issuable upon any stock split, dividend or other
distribution, recapitalization or similar event has been sold or (ii) the date on which all of the
securities required to be registered on such registration statement held by an investor may be sold
without restriction pursuant to Rule 144 under the Securities Act. The Company shall pay all
expenses, if any, in connection with any registration statement filed pursuant to this Section 6.
The Company shall not be subject to any penalty or any damages if the effectiveness of such
registration statement is not declared or the effectiveness of such registration statement is not
maintained.

          7. Conditions to Subscriber’s Obligations. The obligations of the Subscriber under
Section 1(b) of this Agreement are subject to the fulfillment at or before the Closing of each of
the following conditions, any of which may be waived in writing by the Subscriber:

               (a) Representations and Warranties. The representations and warranties of the Company
contained in Section 3 shall be true and correct in all material respects on and as of the Closing
Date with the same effect as if made on and as of the Closing Date.

               (b) Performance. The Company shall have performed or fulfilled in all material
respects all agreements, obligations and conditions contained herein required to be performed or
fulfilled by the Company at or prior to the Closing.

               (c) Regulatory Matters. None of the issuance and sale of the Securities pursuant to
this Agreement or any of the transactions contemplated by any of the other Transaction Documents
shall be enjoined (temporarily or permanently) and no restraining order or other injunctive order
shall have been issued in respect
thereof. There shall not have been any legal action, order, decree or other administrative
proceeding instituted against the Company or against the Subscriber relating to the issuance of the
Securities or the Subscriber’s

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activities in connection therewith or any other transactions
contemplated by this Agreement or the other Transaction Documents.

               (d) Consents. The Company shall have obtained any and all consents, permits and
waivers necessary or appropriate for consummation of the transactions contemplated by the
Transaction Documents.

               (e) Certificate of Designations. The Certificate of Designations shall have been
filed with the Secretary of State of the State of Delaware.

          8. Conditions to the Company’s Obligations. The obligations of the Company under
Section 1(b) of this Agreement are subject to the fulfillment at or before the Closing of each of
the following conditions, any of which may be waived in writing by the Company:

               (a) Representations and Warranties. The representations and warranties of the
Subscriber contained in Section 2 shall be true and correct in all material respects on and as of
the Closing Date with the same effect as if made on and as of the Closing Date.

               (b) Performance. The Subscriber shall have performed or fulfilled in all material
respects all agreements, obligations and conditions contained herein required to be performed or
fulfilled by the Subscriber at or prior to the Closing.

               (c) Subscription Payments. The Subscriber shall have delivered the aggregate
subscription payment for the Units in the amount specified for the Subscriber on the signature page
hereto.

               (d) Regulatory Matters. None of the issuance and sale of the Securities pursuant to
this Agreement or any of the transactions contemplated by any of the other Transaction Documents
shall be enjoined (temporarily or permanently) and no restraining order or other injunctive order
shall have been issued in respect thereof. There shall not have been any legal action, order,
decree or other administrative proceeding instituted against the Company or against the Subscriber
relating to the issuance of the Securities or the Subscriber’s activities in connection therewith
or any other transactions contemplated by this Agreement or the other Transaction Documents.

               (e) Consents. The Company shall have obtained any and all consents, permits and
waivers necessary or appropriate for consummation of the transactions contemplated by the
Transaction Documents.

               (f) Certificate of Designations. The Certificate of Designations shall have been
filed with the Secretary of State of the State of Delaware.

          9. Covenants of Subscriber Not to Short Stock. The Subscriber and its affiliates and
assigns agree not to make any short sale of, or grant any option for the purchase of or enter into
any hedging or similar transaction with the same economic effect as a short sale, the Securities
until one-hundred eighty (180) days following the issuance of the Securities.

          10. Miscellaneous.

               (a) Notices. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable overnight courier service with
charges prepaid, or (iv) transmitted by hand delivery, electronic mail, or facsimile, addressed as
set forth below or to such other address as such party shall have specified most recently by
written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by electronic mail or facsimile, with
accurate confirmation generated by the transmitting facsimile machine, at the address or number
designated below (if delivered on a business day during normal business hours where such notice is
to be received), (b) 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 (c) on the second business day following the date of mailing by
express courier service,

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fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to
the Company, to: Irvine Sensors Corporation, 3001 Red Hill Avenue, Costa Mesa, CA 92650, Attn:
Chief Financial Officer, facsimile: (714) 444-8773, with a copy by to: Dorsey & Whitney LLP, 38
Technology Drive, Suite 100, Irvine, CA 92618, Attn: Ellen S. Bancroft, Esq., facsimile: (949)
932-3601, and (ii) if to the Subscriber, to: the address and facsimile number indicated on the
signature pages hereto.

               (b) Entire Agreement; Assignment. This Agreement and other documents delivered in
connection herewith represent the entire agreement between the parties hereto with respect to the
subject matter hereof and may be amended only by a writing executed by both parties. Neither the
Company nor the Subscriber have relied on any representations not contained or referred to in this
Agreement and the documents delivered herewith. No right or obligation of the Company shall be
assigned without prior notice to and the written consent of the Subscriber.

               (c) Counterparts/Execution. This Agreement may be executed in any number of
counterparts and by the different signatories hereto on separate counterparts, each of which, when
so executed, shall be deemed an original, but all such counterparts shall constitute but one and
the same instrument. This Agreement may be executed by facsimile signature and delivered by
facsimile transmission.

               (d) Law Governing this Agreement. This Agreement shall be governed by and construed
in accordance with the laws of the State of California without regard to principles of conflicts of
laws. Any action brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts of California or in the
federal courts located in the state of California. The parties and the individuals executing this
Agreement and other agreements referred to herein or delivered in connection herewith on behalf of
the Company agree to submit to the jurisdiction of such courts. The prevailing party shall be
entitled to recover from the other party its reasonable attorney’s fees and costs. In the event
that any provision of this Agreement or any other agreement delivered in connection herewith is
invalid or unenforceable under any applicable statute or rule of law, then such provision shall be
deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to
conform with such statute or rule of law. Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of any other provision
of any agreement.

               (e) Specific Enforcement, Consent to Jurisdiction. The Company and the Subscriber
acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement 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 and to enforce
specifically the terms and provisions hereof, this being in addition to any other remedy to which
any of them may be entitled by law or equity. Subject to Section 10(d) hereof, each of the
Company, the Subscriber and any signatory hereto in his personal capacity hereby waives, and agrees
not to assert in any such suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction in California 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. Nothing in
this Section shall affect or limit any right to serve process in any other manner permitted by law.

               (f) Independent Nature of Subscribers. The Company acknowledges that the obligations
of the Subscriber under the Transaction Documents are several and not joint with the obligations of
any other Subscriber who is also purchasing Securities in the transaction (collectively, with the
Subscriber, referred to as the “Subscribers”), and none of the Subscribers shall be responsible in
any way for the performance of the obligations of any of the other Subscribers under the
Transaction Documents. The Company acknowledges that the decision of each of the Subscribers to
purchase Securities has been made by each of such Subscribers independently of any of the other
Subscribers and independently of any information, materials, statements or opinions as to the
business, affairs, operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company which may have been made or given by any of
the other Subscribers or by any agent or employee of any of the other Subscribers, and none of the
Subscribers or any of its agents or employees shall have any liability to any of the Subscribers
(or any other person) relating to or arising from any such information,
materials, statements or opinions. The Company acknowledges that nothing contained in any
Transaction

Page 8

 

Document, and no action taken by any of the Subscribers pursuant hereto or thereto
shall be deemed to constitute the Subscribers as a partnership, an association, a joint venture or
any other kind of entity, or create a presumption that the Subscribers are in any way acting in
concert or as a group with respect to such obligations or the transactions contemplated by the
Transaction Documents. The Company acknowledges that each of the Subscribers shall be entitled to
independently protect and enforce its rights, including without limitation, the rights arising out
of the Transaction Documents, and it shall not be necessary for any of the other Subscribers to be
joined as an additional party in any proceeding for such purpose. The Company acknowledges that it
has elected to provide all of the Subscribers with the same terms and Transaction Documents for the
convenience of the Company and not because Company was required or requested to do so by the
Subscribers. The Company acknowledges that such procedure with respect to the Transaction
Documents in no way creates a presumption that the Subscribers are in any way acting in concert or
as a group with respect to the Transaction Documents or the transactions contemplated thereby.

               (g) Consent. As used in the Agreement, “consent of the Subscribers” or similar
language means the consent of holders of not less than a majority of the outstanding shares of
Series B Stock owned by Subscribers on the date consent is requested.

               (h) Omnibus Signature Page. This Agreement is intended to be read and construed in
conjunction with the Certificate of Designations and the Form of Investor Warrant pertaining to the
issuance by the Company of the Securities pursuant to the Memorandum. Accordingly, pursuant to the
terms and conditions of this Agreement, it is hereby agreed that the execution by the Subscriber of
this Agreement, in the place set forth herein, shall constitute agreement to be bound by the terms
and conditions of the Certificate of Designations and the Investor Warrant, with the same effect as
if each such separate, but related agreement, was separately signed to the extent required to be
executed by the Subscriber.

          11. Wire Instructions

          For wiring the funds directly to the Escrow Account please use the following instructions:

	 	 	 
	Account Name:

	 	US National Bank as Escrow Agent
	 
	 	 
	 

	 	for Irvine Sensors Corp.
	 
	 	 
	ABA Number:

	 	 091000022
	 
	 	 
	A/C Number:

	 	 180121167365
	 
	 	 
	Reference:

	 	Daryl Hosch FFC to 133667000
	 
	 	 
	FBO:

	 	[Investor Name]
	 
	 	 
	 

	 	[Investor’s Social Security Number]
	 
	 	 
	 

	 	[Investor’s Address]

[THIS SPACE INTENTIONALLY LEFT BLANK]

Page 9

 

OMNIBUS SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT AND INVESTOR WARRANT

     IN WITNESS WHEREOF, the Subscriber hereby represents and warrants that the Subscriber has read
this entire Agreement and the Confidential Placement Memorandum and all documents annexed thereto
and incorporated by reference therein, including the Certificate of Designations and the Form of
Investor Warrant, and hereby executes and delivers this Agreement as of the ___ day of September,
2009.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	AGGREGATE	 
	SUBSCRIBER	 	NUMBER OF UNITS	 	 	PURCHASE PRICE	 
	Print Name:
	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Fax:
	 	 	 	 	 	 	 	 

	 	 	 
	 

(Signature)

	 	 
	 
	 	 
	Title:
	 	 

ACCEPTANCE

          IN WITNESS WHEREOF, the Company has duly executed and delivered this Agreement as of the 30th
day of September, 2009.

	 	 	 	 	 
	 	IRVINE SENSORS CORPORATION

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Page 10

 

	 	 	 	 	 

SCHEDULE OF MATERIAL OMITTED DETAILS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate	 	 	 	 
	 	 	Number	 	Purchase	 	Company	 	 
	Subscriber	 	of Units	 	Price	 	Signatory	 	Title
	Gaston Alciatore
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Theodore Bintz, Jr
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Shmyer Breuer
	 	 	285.7142	 	 	$	200,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	John A. Brooks
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Daniel Bush
	 	 	28.5714	 	 	$	20,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Jim Carlson
	 	 	107.1428	 	 	$	75,000	 	 	John C. Carson	 	President & CEO
	Frank Richard Chastek
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	William Church
	 	 	35.7142	 	 	$	25,000	 	 	John C. Carson	 	President & CEO
	Dennis Colbert Living Trust
	 	 	107.1428	 	 	$	75,000	 	 	John C. Carson	 	President & CEO
	Gregory Coppola
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Daniel Cromie1
	 	 	30.0	 	 	$	21,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Denis & Margaret Curtin
	 	 	10.0	 	 	$	7,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	John Davis
	 	 	71.4285	 	 	$	50,000	 	 	John C. Carson	 	President & CEO
	DII Capital,
Inc.
	 	 	35.7142	 	 	$	25,000	 	 	John C. Carson	 	President & CEO
	Danette Dziekan
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Larry Ehlers
	 	 	35.0	 	 	$	24,500	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Paul Enquist
	 	 	42.8571	 	 	$	30,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Audrey Farb
	 	 	71.4285	 	 	$	50,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David Genecco
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David & Sarah Genecco
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David Genecco (FBO Frank Genecco)
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Leo Genecco & Sons
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Louis & Coralie Glantz
	 	 	30.0	 	 	$	21,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Lawrence Guindi
	 	 	28.5714	 	 	$	20,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert Guindi2
	 	 	21.4285	 	 	$	15,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Chris Hall
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO

 

			
	1	 	Mr. Cromie executed two Subscription Agreements for an
aggregate purchase of 30 Units.
	 
	2	 	Mr. Guindi executed two Subscription Agreements for an
aggregate purchase of 21.4285 Units.

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate	 	 	 	 
	 	 	Number	 	Purchase	 	Company	 	 
	Subscriber	 	of Units	 	Price	 	Signatory	 	Title
	Myra Halpern
	 	 	30.0	 	 	$	21,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Jay Harris
	 	 	10.0	 	 	$	7,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Jeffrey Heaman
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Nadine Holter
	 	 	30.0	 	 	$	21,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Alec Jaret
	 	 	71.4285	 	 	$	50,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	George Jewell
	 	 	285.7142	 	 	$	200,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Michael Johnson
	 	 	11.4285	 	 	$	8,000	 	 	John C. Carson	 	President & CEO
	Robert Kaminski
	 	 	42.8571	 	 	$	30,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Sami Kapanen
	 	 	85.7142	 	 	$	60,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Brian Kern
	 	 	100.0	 	 	$	70,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Daniel E. Kern Roth IRA
	 	 	200.0	 	 	$	140,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Joseph Manochio
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Tod McBean
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Alan Meyer
	 	 	25.7142	 	 	$	18,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert & Carleen Mouly
	 	 	35.7142	 	 	$	25,000	 	 	John C. Carson	 	President & CEO
	Marcus Neyenhaus
	 	 	71.4285	 	 	$	50,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	William C. Pawson
	 	 	17.8571	 	 	$	12,500	 	 	John C. Carson	 	President & CEO
	Richard Rammacher
	 	 	71.4285	 	 	$	50,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert C. Randall
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Murdock & Janie Richard
	 	 	142.8571	 	 	$	100,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	James Ridener
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Sanford Ring
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	William Rodgers
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Roger & Jory Ann Rubinger
	 	 	30.0	 	 	$	21,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Randy Schaefer
	 	 	40.0	 	 	$	28,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David Schotz
	 	 	28.5714	 	 	$	20,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Irving Schotz
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	James Giasmis Sideris
	 	 	35.7142	 	 	$	25,000	 	 	John C. Carson	 	President & CEO
	William Smith
	 	 	28.5714	 	 	$	20,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Sandra Sparano
	 	 	107.1428	 	 	$	75,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Richard Spencer
	 	 	20.0	 	 	$	14,000	 	 	John C. Carson	 	President & CEO
	John Suttles
	 	 	71.4285	 	 	$	50,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Jon Stanich
	 	 	35.7142	 	 	$	25,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Lee I. Turner Revocable Trust
	 	 	21.4285	 	 	$	15,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate	 	 	 	 
	 	 	Number	 	Purchase	 	Company	 	 
	Subscriber	 	of Units	 	Price	 	Signatory	 	Title
	Robert Uhrin
	 	 	28.5714	 	 	$	20,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Arnold Weiss
	 	 	285.7142	 	 	$	200,000	 	 	John C. Carson	 	President & CEO
	Francis & Susan Williams
	 	 	20.0	 	 	$	14,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	John Williamson
	 	 	71.4285	 	 	$	50,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David A. and Nancy W. Wood
	 	 	35.7142	 	 	$	25,000	 	 	John C. Carson	 	President & CEO
	Timothy Zakriski
	 	 	14.2857	 	 	$	10,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFOexv10w70

EXHIBIT 10.70

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED BY THE HOLDER HEREOF FOR ITS OWN ACCOUNT FOR
INVESTMENT WITH NO INTENTION OF MAKING OR CAUSING TO BE MADE A PUBLIC DISTRIBUTION OF ALL OR ANY
PORTION THEREOF. SUCH SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED
OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SUCH
ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO IRVINE SENSORS CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

September 30, 2009

IRVINE SENSORS CORPORATION

WARRANT TO PURCHASE COMMON STOCK

Void after September 29, 2014

     IRVINE SENSORS CORPORATION, a Delaware corporation (the “Company”), hereby
certifies that, for value received,                      (including any permitted successors and assigns,
the “Holder”), is entitled, subject to the terms set forth below, to purchase from the
Company at any time or from time to time during the Exercise Period, defined below, and prior to
5:00 PM Central time, on September 29, 2014 (the “Expiration Date”), fully paid and
nonassessable shares of Common Stock (the “Warrant Shares”) under the terms set forth
herein.

     1. Number of Warrant Shares; Exercise Price. This Warrant shall evidence the right of
the Holder to purchase up to                      Warrant Shares at an exercise price per Warrant Share of $0.55
per share, subject to adjustment as provided in Section 6 below (the “Exercise Price”).

     2. Definitions. As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

          (a) The term “Common Stock” shall mean the common stock, $0.01 par value per share, of
the Company.

          (b) The term “Company” shall include any company which shall succeed to or assume the
obligations of the Company hereunder.

          (c) The term “Corporate Transaction” shall mean (i) a sale, transfer or conveyance of
all or substantially all of the assets of the Company; (ii) a consolidation of the Company with, or
merger of the Company with or into, another corporation or other business entity in which the
stockholders of the Company immediately prior to such consolidation or merger own less than 50% of
the voting power of the surviving entity immediately after such consolidation or merger; or (iii)
any transaction or series of related transactions to which the Company is a party in which in
excess of 50% of the Company’s voting power is transferred, excluding any consolidation or merger
effected exclusively to change the domicile of the Company and excluding any transaction for the
primary purpose of raising capital or acquiring another corporation or business entity.

          (d) The term “Stock” shall mean (i) Common Stock or (ii) any other class of stock
resulting from successive changes or reclassifications of such Common Stock consisting solely of
changes in par value, or from par value to no par value, or from no par value to par value.

     3. Exercise Date; Expiration. Subject to the terms hereof, this Warrant may be
exercised by the Holder at any time or from time to time before the Expiration Date (the
“Exercise Period”).

Page 1

 

     4. Exercise of Warrant; Partial Exercise.

          (a) Subject to Section 4(b) below, this Warrant may be exercised in full by the Holder by
surrender of this Warrant, together with the Holder’s duly executed form of subscription attached
hereto as Exhibit A, to the Company at its principal office, accompanied by payment, in
cash or by certified or official bank check payable to the order of the Company, of the aggregate
exercise price (as determined above) of the number of Warrant Shares to be purchased hereunder.
The exercise of this Warrant pursuant to this Section 4 shall be deemed to have been effected
immediately prior to the close of business on the business day on which this Warrant is surrendered
to the Company as provided in this Section 4, and at such time the person in whose name any
certificate for Warrant Shares shall be issuable upon such exercise shall be deemed to be the
record holder of such Warrant Shares for all purposes. No later than seven (7) business days after
the exercise of this Warrant, the Company at its expense will cause to be issued in the name of and
delivered to the Holder, or as the Holder may direct, a certificate or certificates for the number
of fully paid and nonassessable full shares of Warrant Shares to which the Holder shall be entitled
on such exercise, together with cash, in lieu of any fraction of a share, equal to such fraction of
the fair market value (as defined in Section 5(c) below) of one full Warrant Share as of the close
of business on the business day on which this Warrant is surrendered, and, if applicable, a new
warrant evidencing the balance of the shares remaining subject to the Warrant.

          (b) The Holder may not exercise that portion of the Warrant on the deemed exercise date (the
“Exercise Amount”) in amounts that would result in the Holder having a beneficial ownership of
Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock
beneficially owned by the Holder and its affiliates on such deemed exercise date, and (ii) the
number of shares of Common Stock issuable upon the exercise of the Exercise Amount with respect to
which the determination of this Section 4(b) is being made on such deemed exercise date, which
would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the
outstanding shares of Common Stock of the Company. For the purposes of this Section 4(b),
beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the
Holder shall not be limited to successive exercises which would result in the aggregate issuance of
more than 4.99%. The Holder may revoke the exercise limitation described in this Section 4(b), in
whole or in part, upon 61 days prior notice to the Company. The Holder may allocate which of the
equity of the Company deemed beneficially owned by the Holder shall be included in the 4.99% amount
described above and which shall be allocated to the excess above 4.99%. The Holder may waive the
exercise limitation described in this Section 4(b) in whole or in part, upon and effective after 61
days prior written notice to the Company to increase such percentage to up to 9.99%.

     5. Net Issuance.

          (a) Cashless Exercise. In the event that the Company has not registered the Warrant
Shares issued or issuable upon the exercise of this Warrant for resale under the Securities Act of
1933, as amended, on or prior to the six-month anniversary (the “Net Issuance Date”) of the
issuance date of this Warrant, the Holder shall have the right to convert this Warrant (the
“Conversion Right”) into Warrant Shares as provided in this Section 5 from time to time
after the Net Issuance Date until the Expiration Date. Subject to Section 4(b), upon exercise of
the Conversion Right with respect to shares subject to the Warrant (the “Converted Warrant
Shares”), the Company shall deliver to the Holder (without payment by the Holder of any
exercise price or any cash or other consideration) that number of fully paid and nonassessable
Warrant Shares computed using the following formula:

     X = Y (A – B)

                    A

Where:     X =     the number of Warrant Shares to be delivered to the Holder;

                Y =     the number of Converted Warrant Shares;

                A =     the fair market value of one Warrant Share on the Conversion Date (as defined below); and

Page 2

 

                B =     the Exercise Price (as adjusted on the Conversion Date).

     No fractional shares shall be issuable upon exercise of the Conversion Right, and if the
number of shares to be issued (determined in accordance with the foregoing formula) is other than a
whole number, the Company shall pay to the Holder an amount in cash equal to the fair market value
of the resulting fractional share on the Conversion Date (as defined below). Shares issued
pursuant to the Conversion Right shall be treated as if they were issued upon the exercise of the
Warrant.

          (b) Method of Exercise. The Conversion Right may be exercised by the Holder by the
surrender of the Warrant at the principal office of the Company together with a written statement
specifying that the Holder thereby intends to exercise the Conversion Right and indicating the
total number of shares under the Warrant that the Holder is exercising through the Conversion
Right. Such conversion shall be effective upon receipt by the Company of the Warrant together with
the aforesaid written statement, or on such later date as is specified therein (the “Conversion
Date”). Certificates for the shares issuable upon exercise of the Conversion Right shall be
delivered to the Holder within seven (7) business days following the Conversion Date and, if
applicable, a new warrant evidencing the balance of the shares remaining subject to the Warrant
shall also be delivered to the Holder.

          (c) Determination of Fair Market Value. For purposes of this Section 5, fair market
value of a Warrant Share on the Conversion Date shall be determined as follows:

               (i) If the Common Stock is traded on a national securities exchange or the Nasdaq Capital
Market, the fair market value of a Warrant Share shall be deemed to be the closing sales price of
the Common Stock on the stock exchange or market determined by the Board to be the primary market
for the Common Stock as of the trading day immediately prior to the Conversion Date, as such prices
are officially quoted in the composite tape of transactions on such exchange or market;

               (ii) If the Common Stock is traded over-the-counter or in the “pink sheets”, the fair market
value of a Warrant Share shall be deemed to be the closing bid price (or, if such information is
available, the closing selling price, or, in the case of the “pink sheets,” the most recent bid
price) of the Common Stock as of the trading day immediately prior to the Conversion Date; and

               (iii) If there is no public market for the Common Stock, then the fair market value of a
Warrant Share shall be determined by the Board of Directors of the Company in good faith and, upon
request of the Holder, the Board (or a representative thereof) shall, as promptly as reasonably
practicable, but in any event not later than 15 days after such request, notify the Holder of the
Fair Market Value per share of Common Stock.

     6. Adjustments to Exercise Price and Number of Warrant Shares. The number and kind of
Warrant Shares (or any shares of stock or other securities which may be) issuable upon the exercise
of this Warrant and the Exercise Price hereunder shall be subject to adjustment from time to time
upon the happening of certain events, as follows:

          (a) Splits and Subdivisions. In the event the Company should at any time or from time
to time fix a record date for the effectuation of a split or subdivision of the outstanding shares
of Common Stock into a greater number of shares, then, as of such record date (or the date of such
split or subdivision if no record date is fixed), the Exercise Price shall be appropriately
decreased and the number of Warrant Shares for which this Warrant is exercisable shall be
appropriately increased in accordance with Section 6(f) hereof.

          (b) Combination of Shares. If the number of shares of Common Stock outstanding at any
time after the date hereof is decreased by a combination of the outstanding shares of Common Stock,
the Exercise Price shall be appropriately increased and the number of Warrant Shares for which this
Warrant is exercisable shall be appropriately decreased in accordance with Section 6(f) hereof.

          (c) Dividends in Common Stock or Common Stock Equivalents. In the event the Company
should at any time or from time to time fix a record date for the determination of the holders of
Common Stock entitled to receive a dividend or other distribution payable in additional shares of
Common Stock or other securities or rights convertible into, or entitling the holder thereof to
receive directly or indirectly, additional shares of

Page 3

 

Common Stock (hereinafter referred to as the “Common Stock Equivalents”) without
payment of any consideration by such holder for the additional shares of Common Stock or Common
Stock Equivalents, then, as of such record date (or the date of such distribution if no record date
is fixed), 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 Common Stock and Common Stock Equivalents 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 of Common Stock or Common Stock Equivalents.

          (d) Reclassification or Reorganization. If the Warrant Shares issuable upon the
exercise of this Warrant shall be changed into the same or different number of shares of any class
or classes of stock, whether by capital reorganization, reclassification or otherwise (other than a
split or subdivision provided for in Section 6(a) above or stock dividend provided for in Section
6(c) above or a combination of shares provided for in Section 6(b) above, or a reorganization,
merger or consolidation provided for in Section 6(e) below), then and in each such event the Holder
shall be entitled to receive upon the exercise of this Warrant the kind and amount of shares of
stock and other securities and property receivable upon such reorganization, reclassification or
other change, to which a holder of the number of Warrant Shares issuable upon the exercise of this
Warrant would have received if this Warrant had been exercised immediately prior to such
reorganization, reclassification or other change, all subject to further adjustment as provided
herein.

          (e) Merger or Consolidation. If at any time there shall be a capital reclassification
or reorganization of the Warrant Shares or a Corporate Transaction (other than a subdivision,
combination, reclassification or exchange of shares provided for elsewhere in this Section 6) of
the Company, then as a part of such reorganization or Corporate Transaction, lawful and adequate
provision shall be made so that the Holder shall thereafter be entitled to receive upon the
exercise of this Warrant, the number of shares of stock or other securities or property of the
Company, resulting from such reorganization, recapitalization or Corporate Transaction to which a
holder of the number of Warrant Shares issuable upon the exercise of this Warrant would have
received if this Warrant had been exercised immediately prior to such reorganization or Corporate
Transaction. In any such case, the Company will make lawful and appropriate provision to insure
that the provisions of this Section 6(e) hereof will thereafter be applicable as nearly as may be
in relation to any shares of stock or securities thereafter deliverable upon the exercise of this
Warrant. The Company shall not effect any such Corporate Transaction unless prior to or
simultaneously with the consummation thereof the successor corporation (if other than the Company)
resulting from such Corporate Transaction or the corporation purchasing or acquiring such assets or
other appropriate corporation or entity shall assume the obligation to deliver to the Holder, at
the last address of the Holder appearing on the books of the Company, such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the Holder may be entitled to
purchase, and the other obligations under this Warrant. The provisions of this Section 6(e) shall
similarly apply to successive reorganizations, reclassifications, or Corporate Transactions.

          (f) Adjustment in Number of Warrant Shares. Upon each adjustment of the Exercise
Price pursuant to the provisions of this Section 6, the number of Warrant Shares issuable upon the
exercise of this Warrant shall be adjusted to the nearest full amount by multiplying a number equal
to the Exercise Price in effect immediately prior to such adjustment by the number of Warrant
Shares issuable upon exercise of the Warrants immediately prior to such adjustment and dividing the
product so obtained by the adjusted Exercise Price.

          (g) Notice of Record Dates; Adjustments. In the event of a Corporate Transaction, the
Company shall provide to the Holder ten (10) days advance written notice of such Corporate
Transaction. The Company shall promptly notify the Holder in writing of each adjustment or
readjustment of the Exercise Price and the number of Warrant Shares issuable upon the exercise of
this Warrant. Such notice shall state the adjustment or readjustment and show in reasonable detail
the facts on which that adjustment or readjustment is based.

     7. Replacement of Warrants. On receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement reasonably satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of such Warrant, the Company at its expense will execute
and deliver to the Holder, in lieu thereof, a new Warrant of like tenor.

Page 4

 

     8. No Rights or Liability as a Stockholder. This Warrant does not entitle the Holder
to any voting rights or other rights as a stockholder of the Company. No provisions, in the
absence of affirmative action by the Holder to purchase Warrant Shares, and no enumeration of the
rights or privileges of the Holder contained herein, shall give rise to any liability of the Holder
as a stockholder of the Company.

     9. Miscellaneous.

          (a) Transfer of Warrant; Permitted Designees. The Holder agrees not to make any
disposition of this Warrant, the Warrant Shares or any rights hereunder without the prior written
consent of the Company. Any such permitted transfer must be made by the Holder in person or by
duly authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto
as Exhibit B to any such permitted transferee. As a condition precedent to such transfer,
the transferee shall sign an investment letter in form and substance satisfactory to the Company.
Subject to the foregoing, the provisions of this Warrant shall inure to the benefit of and be
binding upon any successor to the Company and shall extend to any holder hereof. Notwithstanding
anything contained herein, the Company shall, upon written instructions to be delivered to the
Company within fifteen (15) business days following the date hereof, transfer all or a portion of
this Warrant to officers, directors, employees and other registered agents or associated persons of
the Holder (collectively, “Permitted Designees”) in accordance with this Section 9;
provided, however, the Company shall not be required to issue such Warrants to any person who is
not an “accredited investor” within the meaning of Regulation D promulgated under the Securities
Act of 1933, as amended, and provided, further, that Holder provides an opinion of counsel
reasonably satisfactory to the Company that such transfer complies with applicable Federal and
state securities laws. Each Permitted Designee shall be required to execute fully and completely
the Investor Representation Letter in the form attached hereto as Exhibit C prior to the
issuance of the Warrant to such person.

          (b) Restrictive Legend. Each certificate for Warrant Shares shall bear a restrictive
legend in substantially the form as follows, together with any additional legend required by (i)
any applicable state securities laws and (ii) any securities exchange upon which such Warrant
Shares may, at the time of such exercise, be listed:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, 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 AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IRVINE SENSORS CORPORATION
THAT SUCH REGISTRATION IS NOT REQUIRED.”

          (c) Titles and Subtitles. The titles and subtitles used in this Warrant are for
convenience only and are not to be considered in construing or interpreting this Warrant.

          (d) Notices. Any notice required or permitted to be given to a party pursuant to the
provisions of this Warrant shall be in writing and shall be effective and deemed given to such
party under this Warrant on the earliest of the following: (i) the date of personal delivery; (ii)
the date of transmission by facsimile, addressed to the other party at its facsimile number, with
confirmation of transmission; (iii) the next business day after deposit with an overnight courier
for United States deliveries; or (iv) five (5) business days after deposit in the United States
mail by registered or certified mail (return receipt requested) for United States deliveries. All
notices not delivered personally or by facsimile will be sent with postage and/or other charges
prepaid and properly addressed to such party at the address set forth on the signature page hereto,
or at such other address as such party may designate by ten (10) days advance written notice to the
other party hereto. Notices to the Company will be marked “Attention: Chief Financial Officer.”

          (e) Attorneys’ Fees. If any action at law or in equity is necessary to enforce or
interpret the terms of this Warrant, the prevailing party shall be entitled to reasonable
attorneys’ fees, costs and disbursements in addition to any other relief to which such party may be
entitled.

          (f) Amendments and Waivers. Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a particular instance
and either

Page 5

 

retroactively or prospectively) with the written consent of the Holder and the Company. Any
amendment or waiver effected in accordance with this Section 9(f) shall be binding upon the Holder
of this Warrant (and of any securities into which this Warrant is convertible), each future holder
of all such securities, and the Company.

          (g) Severability. If one or more provisions of this Warrant are held to be
unenforceable under applicable law, such provision shall be excluded from this Warrant and the
balance of the Warrant shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

          (h) Governing Law. This Warrant shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware, without giving effect to its conflicts of laws
principles.

          (i) Counterparts. This Warrant may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

Page 6

 

     In Witness Whereof, the Company has caused this Warrant to be executed by its duly
authorized officer as of the date first written above.

	 	 	 	 	 
	 	IRVINE SENSORS CORPORATION

a Delaware corporation

 	 
	 	By:  	 	 
	 	Name:	  	 	 
	 	Title:	  	 	 
	 

			
	Address:	 	3001 Red Hill Avenue

Building 4, Suite 108

Costa Mesa, CA 92626

ACKNOWLEDGED AND AGREED:

Holder:

Acknowledgement contained in the Omnibus Signature Page in the Subscription Agreement of each Holder

Page 7

 

EXHIBIT A TO INVESTOR WARRANT

FORM OF SUBSCRIPTION

(To be signed only on exercise of Warrant)

			
	To:	 	IRVINE SENSORS CORPORATION

     The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby
irrevocably elects to (a) purchase ___ shares of the Common Stock covered by such Warrant and
herewith makes payment of $___, representing the full purchase price for such shares at the
price per share provided for in such Warrant, or (b) exercise such Warrant for the issuance of
___ shares of Common Stock in exchange for the surrender of the right to purchase ___
shares of Common Stock under the Warrant pursuant to the Net Issue Exercise provisions of Section 5
of such Warrant.

     Please issue a certificate or certificates representing ___ shares of Common Stock in the
name of the undersigned or in such other name or names as are specified below:

 

(Name)

 

 

(Address)

     The undersigned represents that the undersigned is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act of 1933, as amended, and that the aforesaid
shares are being acquired for the account of the undersigned for investment and not with a view to,
or for resale in connection with, the distribution thereof and that the undersigned has no present
intention of distributing or reselling such shares, all except as in compliance with applicable
securities laws.

	 	 	 	 	 
	 

	 	 

(Signature must conform in all respects to name of the
Holder as specified on the face of the Warrant)
	 	 
	 
	 	 	 	 
	 

	 	 

(Print Name)
	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

(Address)
	 	 

Dated:                                         

Page 8

 

EXHIBIT B TO INVESTOR WARRANT

FORM OF ASSIGNMENT

(To assign the foregoing Warrant, execute this form and supply

required information. Do not use this form to purchase shares.)

     For Value Received, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to:

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 

Dated:                     , 20__

	 	 	 	 	 
	Holder’s

Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Holder’s

Address:
	 	 	 	 
	 

	 	 

	 	 

NOTE: The signature to this Assignment must correspond with the name as it appears on the face of
the Warrant, without alteration or enlargement or any change whatever. Officers of corporations
and those acting in a fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.

Page 9

 

EXHIBIT C TO INVESTOR WARRANT

FORM OF INVESTOR REPRESENTATION LETTER

DATE:                     

Irvine Sensors Corporation

3001 Red Hill Avenue

Building 4, Suite 108

Costa Mesa, CA 92626

Gentlemen:

          In connection with my receipt of warrants (“Warrants”) to purchase the number of shares of
common stock referred to below, I hereby represent, warrant and covenant as follows:

1. Check each one which is applicable:

                     I am an “accredited investor” within the meaning of Regulation D promulgated
under the Securities Act of 1933, as amended (the “Act”);

                     I am able to fend for myself, can bear the economic risk of my investment and
have such knowledge and experience in financial, tax, and business matters so as to utilize
information made available to me in order to evaluate the merits and risks of an investment
decision with respect thereto, or I have a preexisting personal or business relationship with the
Company or one or more of the officers or directors of the Company;

2.                      I have had the opportunity to ask questions and receive and review such
answers and information concerning Irvine Sensors Corporation (the “Issuer”) as I have deemed
pertinent;

3.                      I am not relying on the Issuer or J.P. Turner & Company, L.L.C. respecting the
tax and other economic considerations of an investment in the Issuer;

4.                      I am acquiring the Warrants and the underlying securities related thereto
solely for my own account for investment and not with a view to resale or distribution. I
acknowledge that neither the Warrants nor the underlying securities have been registered under
the Act or any state securities laws and may not be resold except pursuant to an effective
registration statement thereunder or an exemption therefrom;

	 	 	 	 	 
	 

	 	 

Name:
	 	 
	 
	 	 	 	 
	 	 	Holder of Warrants to purchase                     
shares of common stock of Irvine Sensors
Corporation pursuant to the terms of the Common Stock
Purchase Warrant of even date herewith

Page 10

 

SCHEDULE OF MATERIAL OMITTED DETAILS

	 	 	 	 	 	 	 	 	 
	 	 	Warrant	 	Company	 	 
	Holder	 	Shares	 	Signatory	 	Title
	Gaston Alciatore
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Theodore Bintz, Jr
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Shmyer Breuer
	 	 	171,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	John A. Brooks
	 	 	8,571	 	 	John C. Carson	 	President & CEO
	Daniel Bush
	 	 	17,142	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Jim Carlson
	 	 	64,285	 	 	John C. Carson	 	President & CEO
	Frank Richard Chastek
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	William Church
	 	 	21,428	 	 	John C. Carson	 	President & CEO
	Dennis Colbert Living Trust
	 	 	64,285	 	 	John C. Carson	 	President & CEO
	Gregory Coppola
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Daniel Cromie
	 	 	18,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Denis & Margaret Curtin
	 	 	6,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	John Davis
	 	 	42,857	 	 	John C. Carson	 	President & CEO
	DII Capital,
Inc.
	 	 	21,428	 	 	John C. Carson	 	President & CEO
	Danette Dziekan
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Larry Ehlers
	 	 	21,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Paul Enquist
	 	 	25,714	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Audrey Farb
	 	 	42,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David Genecco
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David & Sarah Genecco
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David Genecco (FBO Frank Genecco)
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Leo Genecco & Sons
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Louis & Coralie Glantz
	 	 	18,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Lawrence Guindi
	 	 	17,142	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert Guindi
	 	 	12,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Chris Hall
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Myra Halpern
	 	 	18,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Jay Harris
	 	 	6,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO

 

 

	 	 	 	 	 	 	 	 	 
	 	 	Warrant	 	Company	 	 
	Holder	 	Shares	 	Signatory	 	Title
	Jeffrey Heaman
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Nadine Holter
	 	 	18,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Alec Jaret
	 	 	42,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	George Jewell
	 	 	171,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Michael Johnson
	 	 	6,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert Kaminski
	 	 	25,714	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Sami Kapanen
	 	 	51,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Brian Kern
	 	 	60,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Daniel E. Kern Roth IRA
	 	 	120,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Joseph Manochio
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Tod McBean
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Alan Meyer
	 	 	15,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert & Carleen Mouly
	 	 	21,428	 	 	John C. Carson	 	President & CEO
	Marcus Neyenhaus
	 	 	42,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	William C. Pawson
	 	 	10,714	 	 	John C. Carson	 	President & CEO
	Richard Rammacher
	 	 	42,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert C. Randall
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Murdock & Janie Richard
	 	 	85,714	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	James Ridener
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Sanford Ring
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	William Rodgers
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Roger & Jory Ann Rubinger
	 	 	18,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Randy Schaefer
	 	 	24,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David Schotz
	 	 	17,142	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Irving Schotz
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	James Giasmis Sideris
	 	 	21,428	 	 	John C. Carson	 	President & CEO
	William Smith
	 	 	17,142	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Sandra Sparano
	 	 	64,285	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Richard Spencer
	 	 	12,000	 	 	John C. Carson	 	President & CEO
	John Suttles
	 	 	42,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Jon Stanich
	 	 	21,428	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Lee I. Turner Revocable Trust
	 	 	12,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Robert Uhrin
	 	 	17,142	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	Arnold Weiss
	 	 	171,428	 	 	John C. Carson	 	President & CEO

Page 2

 

	 	 	 	 	 	 	 	 	 
	 	 	Warrant	 	Company	 	 
	Holder	 	Shares	 	Signatory	 	Title
	Francis & Susan Williams
	 	 	12,000	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	John Williamson
	 	 	42,857	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO
	David A. and Nancy W. Wood
	 	 	21,428	 	 	John C. Carson	 	President & CEO
	Timothy Zakriski
	 	 	8,571	 	 	John J. Stuart, Jr.	 	Sr. VP & CFO

Page 3

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