Document:

EX-10.13

Exhibit
10.13

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER REGULATION D PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THIS
WARRANT SHALL NOT CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE
SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THE
SECURITIES ARE “RESTRICTED” AND MAY NOT BE RESOLD OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE
ACT PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

Issue Date:  

WARRANT

To Purchase One Million (1,000,000) Shares of $0.001 Par Value Common Stock (“Common Stock”) of
ICUITI CORPORATION

     THIS CERTIFIES that, for value received, New Light Industries, Ltd (the “Investor”) is
entitled, upon the terms and subject to the conditions hereinafter set forth, at any time on or
after the Issue Date and on or prior to 8:00 p.m. New York City Time on December 31, 2015 (the
“Termination Date”), but not thereafter, to subscribe for and purchase from ICUITI CORPORATION,
a Delaware corporation (the “Company”), One Million shares of Common Stock (the “Warrant
Shares”) of the Company at an Exercise Price per share equal to $0.01 per share (as adjusted
from time to time pursuant to the terms hereof, the “Exercise Price”). This Warrant is being
issued in connection with the Technology Purchase and Royalty Agreement dated December 23, 2005
(the “Technology Agreement”) entered into between the Company and the Investor.

     1. Title of Warrant. This Warrant and the rights hereunder may not be transferred
by the Investor, without the prior written consent of the Company. In the event the Company
shall consent to such a transfer, then the Holder shall surrender this Warrant in person or by
duly authorized attorney at the office of the Company, together with (a) the Assignment Form
annexed hereto properly endorsed, and (b) any other documentation reasonably necessary to
satisfy the Company that such transfer is in compliance with all applicable securities laws. The
Company may withhold its consent for any reason or for no reason. The term “Holder” shall refer
to the Investor or any subsequent transferee of this Warrant.

     2. Authorization of Shares. The Company covenants that all shares of Common Stock
which may be issued upon the exercise of rights represented by this Warrant will, upon exercise
of the rights represented by this Warrant and payment of the Exercise Price as set forth herein
will be duly authorized, validly issued, fully paid and non-assessable and free from all taxes,
liens and charges in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue or otherwise specified herein).

 

 

     3. Exercise of Warrant.

     (a) The Holder may exercise this Warrant as to 250,000 shares of Common Stock on or after the
Issue Date, as to an additional 250,000 shares of Common Stock on or after January 1, 2007, as to
an additional 250,000 shares of Common Stock on or after January 1, 2008 and as to all of the
shares of Common Stock that are the subject of this Warrant on and after January 1, 2009. Subject
to the foregoing sentence, the Holder may exercise this Warrant, in whole or in part, at any time
on or prior to the Termination Date and from time to time, by delivering to the offices of the
Company or any transfer agent for the Common Stock this Warrant, together with a Notice of
Exercise in the form annexed hereto specifying the number of Warrant Shares with respect to which
this Warrant is being exercised, together with payment to the Company of the Exercise Price
therefor.

     (b) In the event that the Warrant is not exercised in full, the number of Warrant Shares
shall be reduced by the number of such Warrant Shares for which this Warrant is exercised and/or
surrendered, and the Company, at its expense, shall within ten (10) calendar days issue and
deliver to the Holder a new Warrant of like tenor in the name of the Holder or as the Holder
(upon payment by Holder of any applicable transfer taxes) may request, reflecting such adjusted
Warrant Shares.

     (c) The Company shall use its best efforts to deliver the certificates for shares of Common
Stock purchased hereunder to the Holder hereof within ten (10) calendar days after the date on
which this Warrant shall have been exercised as aforesaid. The Holder may withdraw its Notice of
Exercise at any time if the Company fails to deliver within ten (10) calendar days the relevant
certificates to the Holder as provided in this Agreement.

     (d) Cashless Exercise. Notwithstanding the foregoing provision regarding payment of
the Exercise Price in cash, the Holder may elect to receive a reduced number of Warrant Shares in
lieu of tendering the Exercise Price in cash. In such case, the number of Warrant Shares to be
issued to the Holder shall be computed using the following formula:

X = Y x (A-B)

       A

	 	 	 	 	 
	 

	 	     where:
	 	X = the number of Warrant Shares to be issued to the Holder;
	 

	 	 	 	Y = the number of Warrant Shares to then be exercised under this Warrant
Certificate;
	 

	 	 	 	A = the Market Value (defined below) of one share of Common Stock; and B = the
Exercise Price.

     (e) As used herein, “Market Value” refers to the closing price of the Common Stock (as
reported by Bloomberg, L.P.) on the day before the Notice of Exercise and this Warrant are
duly surrendered to the Company for a full or partial exercise hereof. Notwithstanding the
foregoing definition, if the Common Stock is not listed on a national securities exchange or
quoted in the Nasdaq System at the time said Notice of Exercise is submitted to the Company in the
foregoing manner, the Market Value of the Common Stock shall be as reasonably determined in good
faith by the Board of Directors of the Company unless the Company shall become subject to a
merger, acquisition, or other consolidation pursuant to which the Company

 

 

is not the surviving entity, in which case the Market Value of the Common Stock shall be
deemed to be the value received by the Company’s common shareholders pursuant to the Company’s
acquisition (subject to Section 12 below).

     (f) Change in Control Transaction. If at any time there occurs any Change in Control
Transaction, then the Holder shall be deemed to have exercised the entirety of this Warrant
immediately prior to the effectiveness of such Change in Control Transaction becoming effective
or immediately prior to the applicable record date thereof, if earlier (notwithstanding any
restrictions imposed upon the ability of the Holder to do so), and the Holder shall be entitled
to receive upon or after such change in control becoming effective, and upon payment of the
Exercise Price then in effect, the number of shares or other securities of the Company, the
number of shares or other securities of any other entity and/or any other property which would
have been received by the Holder for the shares of stock subject to this Warrant had this Warrant
been exercised immediately prior to such Change in Control Transaction becoming effective or
immediately prior to the applicable record date thereof, if earlier. “Change in Control
Transaction” shall mean the occurrence of (x) any consolidation or merger of the Company with or
into any other corporation or other entity or person (whether or not the Company is the surviving
corporation) (excluding a consolidation or merger in connection with a corporate reorganization
in which the ultimate beneficial owners of the Company before and after such transaction are the
same), or (y) any other corporate reorganization or transaction or series of related transactions
in which in excess of 50% of the Company’s voting power is transferred through a merger,
consolidation or similar transaction, or (z) the liquidation or distribution to shareholders of
the Company of all or substantially all of the Company’s assets, or any sale or transfer of all
or substantially all of the Company’s assets.

     4. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. In lieu of issuance of a
fractional share upon any exercise hereunder, the Company will either round up to the nearest
whole number of shares or pay the cash value of that fractional share calculated on the basis of
the Fair Market Value (as defined below).

     5. Charges, Taxes and Expenses. Issuance of certificates for shares of Common Stock
upon the exercise of this Warrant shall be made without charge to the Holder hereof for any issue
or transfer tax or other incidental expense in respect of the issuance of such certificate, all
of which taxes and expenses shall be paid by the Company, and such certificates shall be issued
in the name of the Holder of this Warrant or in such name or names as may be directed by the
Holder of this Warrant; provided, however, that in the event certificates for
shares of Common Stock are to be issued in a name other than the name of the Holder of this
Warrant, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form
attached hereto duly executed by the Holder hereof; and provided, further, that
the Company shall not be required to pay any tax or taxes which may be payable in respect of any
transfer involved in the issuance of any Warrant certificates or any certificates for the Warrant
Shares other than the issuance of a Warrant Certificate to the Holder in connection with the
Holder’s surrender of a Warrant Certificate upon the exercise of all or less than all of the
Warrants evidenced thereby.

     6. Closing of Books. The Company will at no time close its shareholder books or
records in any manner which interferes with the timely exercise of this Warrant.

 

 

     7. No Rights as Shareholder until Exercise. Subject to Section 12 of this Warrant and
the provisions of any other written agreement between the Company and the Investor, the Investor
shall not be entitled to vote or receive dividends or be deemed the holder of Warrant Shares or
any other securities of the Company that may at any time be issuable on the exercise hereof for
any purpose, nor shall anything contained herein be construed to confer upon the Investor, as
such, any of the rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, change of par value, or change of stock to no par value, consolidation,
merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until the Warrant shall have been exercised as provided herein.
However, at the time of the exercise of this Warrant pursuant to Section 3 hereof, the Warrant
Shares so purchased hereunder shall be deemed to be issued to such Holder as the record owner of
such shares as of the close of business on the date on which this Warrant shall have been
exercised.

     8. Assignment and Transfer of Warrant. If permitted by the Company, in its sole
discretion, this Warrant may be assigned by the surrender of this Warrant and the Assignment Form
annexed hereto duly executed at the office of the Company (or such other office or agency of the
Company or its transfer agent as the Company may designate by notice in writing to the registered
Holder hereof at the address of such Holder appearing on the books of the Company);
provided, however, that this Warrant may not in any event be resold or otherwise
transferred except (i) in a transaction registered under the Securities Act of 1933, as amended
(the “Act”), or (ii) in a transaction pursuant to an exemption, if available, from registration
under the Act and whereby, if reasonably requested by the Company, an opinion of counsel
reasonably satisfactory to the Company is obtained by the Holder of this Warrant to the effect
that the transaction is so exempt. If this Warrant is permitted to be and is duly assigned in
accordance with the terms hereof, then the Company agrees, upon the request of the assignee, to
amend or supplement promptly any effective registration statement covering the Warrant Shares so
that the direct assignee of the original holder is added as a selling stockholder thereunder.

     9. Loss, Theft, Destruction or Mutilation of Warrant; Exchange. The Company represents
warrants and covenants that (a) upon receipt by the Company of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of any Warrant or stock certificate representing
the Warrant Shares, and in case of loss, theft or destruction, of indemnity reasonably satisfactory
to it, and (b) upon surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of
such cancellation, in lieu of this Warrant or stock certificate; provided, that the Company may
make a reasonable charge therefor. This Warrant is exchangeable at any time for an equal aggregate
number of Warrants of different denominations, as requested by the holder surrendering the same, or
in such denominations as may be requested by the Holder following determination of the Exercise
Price. The Company may impose a reasonable service charge for such registration or transfer,
exchange or reissuance.

     10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or
a

 

 

legal holiday, then such action may be taken or such right may be exercised on the next
succeeding day not a legal holiday.

     11. Specific Enforcement. The Company and the Holder acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this Warrant 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 Warrant and to enforce specifically the terms and provisions
hereof, this being in addition to any other remedy to which either of them may be entitled by law
or equity.

     12. Adjustments of Exercise Price and Number of Warrant Shares. The number of and kind
of securities purchasable upon exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time as set forth in this Section 12.

     (a)Subdivisions, Combinations, Stock Dividends and other Issuances. If the Company
shall, at any time while this Warrant is outstanding, (A) pay a stock dividend or otherwise make a
distribution or distributions on any equity securities (including instruments or securities
convertible into or exchangeable for such equity securities) in shares of Common Stock, (B)
subdivide outstanding shares of Common Stock into a larger number of shares, or (C) combine
outstanding Common Stock into a smaller number of shares, then the Exercise Price shall be
multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding before such event and the denominator of which shall be the number of shares of Common
Stock outstanding after such event. Any adjustment made pursuant to this Section 12(a) shall become
effective immediately after the record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective immediately after the effective
date in the case of a subdivision or combination. The number of shares which may be purchased
hereunder shall be increased proportionately to any reduction in Exercise Price pursuant to this
paragraph 12(a), so that after such adjustments the aggregate Exercise Price payable hereunder for
the increased number of shares shall be the same as the aggregate Exercise Price in effect just
prior to such adjustments.

     (b) Other Distributions. If at any time after the date hereof the Company distributes
to holders of its Common Stock, other than as part of its dissolution, liquidation or the winding
up of its affairs, any shares of its capital stock, any evidence of indebtedness or any of its
assets (other than Common Stock), then the number of Warrant Shares for which this Warrant is
exercisable shall be increased to equal: (i) the number of Warrant Shares for which this Warrant
is exercisable immediately prior to such event, (ii) multiplied by a fraction, (A) the numerator
of which shall be the Fair Market Value (as defined below) per share of Common Stock on the record
date for the dividend or distribution, and (B) the denominator of which shall be the Fair Market
Value price per share of Common Stock on the record date for the dividend or distribution minus
the amount allocable to one share of Common Stock of the value (as jointly determined in good
faith by the Board of Directors of the Company and the Holder) of any and all such evidences of
indebtedness, shares of capital stock, other securities or property, so distributed. For purposes
of this Warrant, “Fair Market Value” shall equal the average closing price of the Common Stock for
the 5 Trading Days preceding the date of determination or, if the Common Stock is not listed or
admitted to trading on a national securities exchange or quoted in the Nasdaq System, and the
average price cannot be determined as contemplated above, the Fair

 

 

Market Value of the Common Stock shall be as reasonably determined in good faith by the
Company’s Board of Directors . The Exercise Price shall be reduced to equal: (i) the Exercise
Price in effect immediately before the occurrence of any event (ii) multiplied by a fraction, (A)
the numerator of which is the number of Warrant Shares for which this Warrant is exercisable
immediately before the adjustment, and (B) the denominator of which is the number of Warrant
Shares for which this Warrant is exercisable immediately after the adjustment.

     (c) Reclassification, etc. If at any time after the date hereof there shall be are
organization or reclassification of the securities as to which purchase rights under this Warrant
exist into the same or a different number of securities of any other class or classes, then the
Holder shall thereafter be entitled to receive upon exercise of this Warrant, during the period
specified herein and upon payment of the Exercise Price then in effect, the number of shares or
other securities or property resulting from such reorganization or reclassification, which would
have been received by the Holder for the shares of stock subject to this Warrant had this Warrant
at such time been exercised.

     (d) Exercise Price Adjustment. In the event of any adjustment in the number of
Warrant Shares issuable hereunder upon exercise, the Exercise Price shall be inversely
proportionately increased or decreased as the case may be, such that aggregate purchase price for
Warrant Shares upon full exercise of this Warrant shall remain the same. Similarly, in the event
of any adjustment in the Exercise Price, the number of Warrant Shares issuable hereunder upon
exercise shall be inversely proportionately increased or decreased as the case may be, such that
the aggregate purchase price for Warrant Shares upon full exercise of this Warrant shall remain
the same.

     13. Notice of Adjustment; Notice of Events. (i) Whenever the number of Warrant Shares
or number or kind of securities or other property purchasable upon the exercise of this Warrant or
the Exercise Price is adjusted, the Company shall promptly mail to the Holder of this Warrant a
notice setting forth the number of Warrant Shares (and other securities or property) purchasable
upon the exercise of this Warrant and the Exercise Price of such Warrant Shares after such
adjustment and setting forth the computation of such adjustment and a brief statement of the facts
requiring such adjustment. (ii) If: (A) the Company shall declare a dividend (or any other
distribution) on its Common Stock; or (B) the Company shall declare a special nonrecurring cash
dividend on or a redemption of its Common Stock; or (C) the Company shall authorize the granting to
all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of
capital stock of any class or of any rights; or (D) the approval of any stockholders of the Company
shall be required in connection with any reclassification of the Common Stock of the Company, any
consolidation or merger to which the Company is a party, any sale or transfer of all or
substantially all of the assets of the Company, or any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property; or (E) the Company shall authorize the
voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company
shall cause to be mailed to each Warrant holder at their last addresses as they shall appear upon
the Warrant register of the Company, at least 20 calendar days prior to the applicable record or
effective date hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a
record is not to be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are to be determined or
(y) the date on which such reclassification, consolidation, merger, sale,

 

 

transfer or share exchange is expected to become effective or close, and the date as of which
it is expected that holders of Common Stock of record shall be entitled to exchange their shares of
Common Stock for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation or winding up.

     14. Authorized Shares. The Company covenants that during the period the Warrant is
outstanding and exercisable, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise
of any and all purchase rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary certificates for the
Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take
all such reasonable action as may be necessary to assure that such Warrant Shares may be issued
as provided herein without violation of any applicable law, regulation, or rule of any applicable
market or exchange.

     15. Authorization of Warrant and Warrant Shares. The Company has all necessary
corporate power and authority to issue and sell the Warrant and the Warrant Shares (together, the
“Securities”). The issuance, sale and delivery of the Warrant in accordance herein and the
issuance and delivery of the Warrant Shares upon exercise of the Warrant have been duly
authorized by all necessary corporate action on the part of the Company. Sufficient authorized
but unissued shares of Common Stock have been reserved by appropriate corporate action in
connection with the prospective exercise of the Warrant at the applicable exercise price. The
Warrant Shares, when issued, sold and delivered upon exercise of the Warrant will be duly and
validly issued, fully paid, non- assessable and are not subject to preemptive rights or other
preferential rights in any present or future stockholders of the Company, will not be subject to
any lien, and will not conflict with any provision of any agreement or instrument to which the
Company is a party or by which it or its property is bound.

     16. Securities Representations of Investor: In connection with the acquisition of
the Warrant by Holder and the acquisition of the Warrant Shares upon the exercise of the
Warrant, Investor represents to the Company that:

     (a) The Investor is an “accredited investor” as that term is defined in Rule 501
promulgated by the Securities and Exchange Commission (the “SEC”) pursuant to the Securities Act
of 1933, as amended.

     (b) The Securities are being acquired for the Investor’s own account, for investment and not
with a view to, or for resale in connection with, any distribution thereof within the meaning of
the Securities Act or the securities laws of any state applicable to the Investor. The Investor
understands that the Securities have not been registered under the Securities Act by reason of
their issuance in a transaction exempt from the registration and prospectus delivery requirements
of the Securities Act pursuant to Section 4(2) thereof, which exemption depends upon, among other
things, the bona fide nature of the Investor’s investment intent expressed herein, that Investor
has no present intention of registering the Securities, and that the Securities must be held by
the Investor indefinitely unless a subsequent disposition thereof is registered under the
Securities Act or is exempt from registration.

 

 

     (c) During the negotiation of the transactions contemplated herein, the Investor and its
representatives have been afforded full and free access to corporate books, documents, and other
information concerning the Buyer and to its offices and facilities, have been afforded an
opportunity to ask such questions of the Buyer and its officers, employees, agents, accountants,
and representatives concerning the Buyer’s business, operations, financial condition, assets,
liabilities, and other relevant matters as they have deemed necessary or desirable, and have
been given all such information as has been requested, in order to evaluate the merits and risks
of the prospective investments contemplated herein.

     (d) The Investor and its representatives have been solely responsible for the Investor’s
own “due diligence” investigation of the Buyer and its management and business, for its own
analysis of the merits and risks of this investment, and for its own analysis of the fairness
and desirability of the terms of the investment. The Investor has such knowledge and experience
in financial and business matters that the Investor is capable of evaluating the merits and
risks of acquiring the Securities pursuant to the terms of this Agreement and of protecting
Investor’s interests in connection therewith.

     (e) The Investor is able to bear the economic risk of the purchase of the Securities
pursuant to the terms of this Agreement, including a complete loss of the Investor’s investment
in the Securities.

     (f) The Securities are transferable only pursuant to (1) public offerings registered under
the Securities Act, (2) Rule 144 or Rule 144A promulgated under the Securities Act (or any
similar rule or rules then in force) if such rule is available, (3) upon satisfaction of the
conditions specified in Section 8,8.8 or (4) any other legally available means of transfer.

     (g) Legend. Each certificate or instrument representing the Securities shall be imprinted
with a legend in substantially the following form. The securities represented hereby have not
been registered under the Securities Act of 1933, as amended. The transfer of the securities
represented by this certificate is subject to the conditions specified in the Rights Agreement,
dated as of December 21, 2005, as amended and modified from time to time, between the issuer
(the “Company”) and certain investors, as amended and modified from time to time. A copy of such
Agreement will be furnished by the Company to the holder hereof upon written request and without
charge.

     (h) In connection with the transfer of any of the Securities (other than a transfer
described in Section (f)(1) above), the holder thereof shall deliver written notice to the
Company describing in reasonable detail the transfer or proposed transfer, together with an
opinion of legal counsel which (to the Company’s reasonable satisfaction) is knowledgeable in
securities law matters to the effect that such transfer of the Securities may be effected
without registration of the Securities under the Securities Act. In addition, if the holder of
the Securities delivers to the Company an opinion of such counsel that no subsequent transfer of
such Securities shall require registration under the Securities Act, the Company shall promptly
upon such contemplated transfer deliver new certificates for such Securities which do not bear
the Securities Act legend set forth in Section (g). If the Company is not required to deliver
new certificates for such Securities not bearing such legend, the holder thereof shall not
transfer the same until the prospective transferee has confirmed to the Company in writing its
agreement to

 

 

be bound by the conditions contained in this Section (h).

     17. Compliance with Securities Laws

     (a) The Holder hereof acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered (or if no exemption from registration exists), will have restrictions
upon resale imposed by state and federal securities laws. Each certificate representing the
Warrant Shares issued to the Holder upon exercise (if not registered, for resale or otherwise, or
if no exemption from registration exists) will bear substantially the following legend:

	 	 	 	THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, TRANSFERRED,
SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
	 
	 	(b)	 	Without limiting the Investor’s right to transfer, assign or
otherwise convey the Warrant or Warrant Shares in compliance with all applicable
securities laws, the Investor of this Warrant, by acceptance hereof,
acknowledges that this Warrant and the Warrant Shares to be issued upon exercise
hereof are being acquired solely for the Investor’s own account and not as a
nominee for any other party, and that the Investor will not offer, sell or
otherwise dispose of this Warrant or any Warrant Shares to be issued upon
exercise hereof except under circumstances that will not result in a violation
of applicable federal and state securities laws.

               18. Miscellaneous.

     (a) Issue Date; Choice of Law; Venue; Jurisdiction. The provisions of this Warrant shall be
construed and shall be given effect in all respects as if it had been issued and delivered by the
Company on the date hereof. This Warrant shall be binding upon any successors or assigns of the
Company. This Warrant will be construed and enforced in accordance with and governed by the laws
of the State of New York, except for matters arising under the Act, without reference to
principles of conflicts of law. Each of the parties consents to the exclusive jurisdiction of the
Federal and State Courts sitting in the County of Monroe in the State of New York in connection
with any dispute arising under this Warrant and hereby waives, to the maximum extent permitted by
law, any objection, including any objection based on forum non

 

 

conveniens, to the bringing of any such proceeding in such jurisdiction. Each party hereby
agrees that if the other party to this Warrant obtains a judgment against it in such a
proceeding, the party which obtained such judgment may enforce same by summary judgment in the
courts of any country having jurisdiction over the party against whom such judgment was obtained,
and each party hereby waives any defenses available to it under local law and agrees to the
enforcement of such a judgment. Each party to this Warrant irrevocably consents to the service of
process in any such proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to such party at its address in accordance with Section 18(c). Nothing herein
shall affect the right of any party to serve process in any other manner permitted by law.

     (b) Modification and Waiver. This Warrant and any provisions hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the party against
which enforcement of the same is sought. Any amendment effected in accordance with this
paragraph shall be binding upon the Investor, each future Holder of this Warrant and the
Company. No waivers of, or exceptions to, any term, condition or provision of this Warrant, in
any one or more instances, shall be deemed to be, or construed as, a further or continuing
waiver of any such term, condition or provision.

     (c) Notices. Any notice, request or other document required or permitted to be
given or delivered to the Investor or future Holders hereof or the Company shall be personally
delivered or shall be sent by certified or registered mail, postage prepaid, to the Investor or
each such Holder at its address as shown on the books of the Company or to the Company at the
address set forth in the Technology Agreement. All notices under this Warrant shall be deemed to
have been given when received. A party may from time to time change the address to which notices
to it are to be delivered or mailed hereunder by notice given in accordance with the provisions
of this Section 18(c)

     (d) Severability. Whenever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect the validity, legality or enforceability of any other provision of this Warrant
in such jurisdiction or affect the validity, legality or enforceability of any provision in any
other jurisdiction, but this Warrant shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never been contained
herein.

     (e) No Impairment. The Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder against
impairment. Without limiting the generality of the foregoing, the Company (a) will not increase
the par value of any Warrant Shares above the amount payable therefor on such exercise, and (b)
will take all such action as may be reasonably necessary or appropriate in order that the
Company may validly and legally issue fully paid and non-assessable Warrant Shares on the
exercise of this Warrant.

 

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officers
thereunto duly authorized.

	 	 	 	 	 	 	 
	 	 	ICUITI CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul J. Travers	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Paul J. Travers	 	 
	 

	 	Title:
	 	President	 	 

 

 

NOTICE OF EXERCISE

TO: ICUITI CORPORATION

(1) The undersigned hereby elects to exercise the attached Warrant for and to purchase
thereunder, shares of Common Stock, [and herewith makes payment therefor of] or [and elects
to utilize the cashless exercise provisions of Section 3(b) of this Warrant, resulting in shares of
Common Stock issuable hereunder].

(2) Please issue a certificate or certificates representing said shares of Common Stock in the
name of the undersigned or in such other name as is specified below (please provide a Taxpayer ID
if being registered in another name):

	 	 	 	 	 	 	 
	 

	 	(Name)	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	(Address)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(Tax ID #)
	 	 	 	 	 

(3) Please issue a new Warrant for the unexercised portion of the attached Warrant
                     remaining Warrants after this exercise) in the name of the undersigned or in such
other name as is specified below):

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	(Name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(Date)
	 	 	 	(Signature)               	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Address)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Dated:	 	 	 	 
	 	 	 	 	 	 	 
	 
	Signature
	 	 	 	 	 	 	 	 

 

 

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to whose address is                          

Dated:

Holder’s Signature: Holder’s Address:

Signature Guaranteed:                                                              
                   

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in an fiduciary
or other representative capacity should file proper evidence of authority to assign the foregoing
Warrant.EX-10.14

Exhibit
10.14

RIGHTS AGREEMENT

     THIS RIGHTS AGREEMENT (this “Agreement”) dated as of December 23, 2005, is by and among Icuiti
Corporation., a Delaware corporation (the “Company”) and New Light Industries, Ltd. the holders of
a Warrant to purchase shares of the Common Stock of the Company (“New Light”), a Washington state
corporation. The names and addresses of the parties to this Agreement are set forth on Schedule
I hereto.

     WHEREAS, New Light is acquiring a Warrant (the :“Warrant”) entitling it to purchase up to
1,000,000 shares of the Company’s Common Stock, in connection with a Technology Purchase and
Royalty Agreement between the Company and New Light of even date herewith (the “Technology
Agreement”); and

     WHEREAS, in order to induce New Light to enter into the Technology Agreement, the parties
desire to enter into this Agreement.

     NOW, THEREFORE, in consideration of the foregoing, the mutual promises and agreements set
forth below, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

1. CERTAIN DEFINITIONS

     As used in this Agreement, the following terms have the following respective meetings:

     “Affiliate” means any Person who, directly or indirectly controls, is controlled by, or is
under common control with any other Person; provided, that Persons shall not be deemed Affiliates
based solely upon those Persons having made investments in the same entity.

     “Board” means the board of directors of the Company as constituted from time to time.

     “Common Stock” means the Common Stock, $.001 par value, of the Company, as constituted as of
the date of this Agreement.

     “Warrant Shares” means shares of Common Stock issued or issuable upon exercise of the
Warrant.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder, all as the same shall be in effect from time to time.

     “Form S-3” means Form S-3 promulgated by the SEC, or any successor or similar form so
promulgated.

     “Holder” means any Person owning or having the right to acquire Registrable Securities or
any assignee thereof in accordance with Section 2.09 hereof

     “Initial Public Offering” means the Company’s first firm commitment underwritten public
offering of its Common Stock under the Securities Act.

 

 

     “Person” means an individual, corporation, partnership, limited liability company, joint
venture, trust, or unincorporated organization, or a government or any agency or political
subdivision thereof, and “Persons” means any two or more of any of the foregoing.

     “Warrant Holders” means the holders the Warrant from time to time.

     “Qualified Public Offering” means a firm commitment underwritten public offering of shares of
Common Stock in which (x) the aggregate gross proceeds from such offering to the Company shall be
at least $20,000,000.

     The terms “register,” “registered” and “registration” refer to a registration effected by
preparing and filing a registration statement or similar document in compliance with the Act, and
the declaration or ordering of effectiveness of such registration statement or document.

     “Registrable Securities” means the Warrant Shares and any shares of Common Stock of the
Company issued as (or issuable upon the conversion or exercise of any warrant, right or other
security that is issued as) a dividend or other distribution with respect to, or in exchange for,
or in replacement of, the Warrant Shares; provided, however, that “Registrable
Securities” shall not include any shares sold or otherwise transferred by a Person in a
transaction in which such Person’s rights under Article 2 are not assigned as permitted by Section
2(g) of this Agreement. When reference is made in this Agreement to a request or consent of
holders of a certain percentage of Registrable Securities, the determination of such percentage
shall include shares of Common Stock issuable upon conversion or exercise of the Warrant.

     “SEC” means the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act and the Exchange Act.

     “Securities” means the Warrant and the Warrant Shares.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, all as the same shall be in effect from time to time.

2. REGISTRATION RIGHTS

     (a) Company Registration.

          Notice of Company Registration. If, at any time or from time to time, the Company
proposes to register (including for this purpose a registration effected by the Company for
stockholders other than the Holders) any of its capital stock or other securities under the
Securities Act in connection with the public offering of such securities (other than (i) a
registration statement on Form S-4 relating solely to a transaction under Rule 145 of the
Securities Act, (ii) a registration statement on Form S-8 relating to employee stock option or
purchase plans, (iii) a registration statement on any successor to such Forms S-4 and S-8) or
(iv) a registration statement relating to the Company’s Initial Public Offering, the Company
shall notify each Holder in writing at least thirty (30) days prior to the filing of any such
registration and will afford each such Holder an opportunity to include in such registration
statement all or part of such Registrable Securities held by such Holder. Upon the written
request of each Holder given within twenty (20) days after receipt of such notice from the

 

 

Company in accordance with Section 5(a), the Company shall, subject to the other provisions
of this Section 2(a), use its best efforts to cause to be registered under the Securities Act all
of the Registrable Securities that each such Holder has requested to be registered.

          Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 2(a) prior to the effectiveness of
such registration whether or not any Holder has elected to include securities in such
registration. The expenses of such withdrawn registration shall be borne by the Company in
accordance with Section 2(d) hereof.

          Underwriting Requirements. In connection with any offering involving an underwriting
of shares of the Company’s capital stock, the Company shall not be required under this Section
2(a) to include any of the Holders’ securities in such underwriting unless they accept the terms
of the underwriting reasonably agreed upon between the Company and the underwriters selected by
it (or by other Persons entitled to select the underwriters) and enter into an underwriting
agreement in customary form with an underwriter or underwriters selected by the Company. In the
event that the underwriters advise the Company that marketing factors require a limitation of the
number of shares to be underwritten, the Company and its underwriters shall allocate the number
of shares requested to be registered by each of the holders thereof as follows: (i) first, to the
Company; (ii) second, to the holders of the class of security to be included in such registration
statement that have been granted registration rights prior to the date of this Agreement, (iii)
third, persons who are officers or directors of the Company who are holders of the class of
security to be included in such registration statement (iv) fourth, to Holders of Registrable
Securities that have elected to participate in such offering, pro rata according to the number of
Registrable Securities held by each such Holder; and (v) fifth, to the extent additional
securities may be included in such offering, to those holders of securities that may be offered
as part of the registration who are seeking to participate in such registration, in amounts to be
determined in the discretion of the Board. If any Holder disapproves of the terms of any such
underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and
the underwriter, delivered no later than ten (10) business days prior to the effective date of
the registration statement.

     (b) Obligations of the Company. Whenever required under this Article 2 to effect the
registration of any Registrable Securities, the Company shall, as expeditiously as reasonably
practicable: prepare and file with the SEC a registration statement with respect to such
Registrable Securities and use its best efforts to cause such registration statement to become
effective, and keep such registration statement effective for a period of up to two years or, if
earlier, until the distribution contemplated in the registration statement has been completed;
prepare and file with the SEC such amendments and supplements to such registration statement and
the prospectus used in connection with such registration statement as may be necessary to comply
with the provisions of the Securities Act with respect to the disposition of all securities covered
by such registration statement; furnish to the Holders such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the Securities Act, and
such other documents as they may reasonably request in order to facilitate the disposition of
Registrable Securities owned by them; use best efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders, provided that the

 

 

Company shall not be required in connection therewith or as a condition thereto to qualify to
do business or to file a general consent to service of process in any such states or jurisdictions,
unless the Company is already subject to service in such jurisdiction and except as may be required
under the Securities Act; in the event of any underwritten public offering, enter into and perform
its obligations under an underwriting agreement, in usual and customary form, with the managing
underwriter of such offering; immediately notify each Holder of Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to
make the-statements therein not misleading in the light of the circumstances then existing; cause
all such Registrable Securities registered pursuant hereunder to be listed on each securities
exchange on which similar securities issued by the Company are then listed; provide a transfer
agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number
for all such Registrable Securities, in each case not later than the effective date of such
registration; use its best efforts to furnish, on the date that such Registrable Securities are
delivered to the underwriters for sale, if such securities are being sold through underwriters, (i)
an opinion, dated as of such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and (ii) a letter dated as of such date,
from the independent certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters; and in connection with the registration of any
Registrable Securities, prior to the filing of such registration statement, make available for
inspection by each Holder selling Registrable Securities in such registration, any underwriter
participating in any distribution pursuant to such registration statement, and any attorney,
accountant or other agent retained by such seller or underwriter, a copy of the registration
statement, all pertinent financial and other records, pertinent corporate documents and properties
of the Company, and cause the Company’s officers, directors and employees to supply all information
reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection
with such registration statement and provide each holder and its counsel with the opportunity to
participate in the preparation of the registration statement.

     (c) Information from Holder. It shall be a condition precedent to the obligations of
the Company to take any action pursuant to this Article 2 with respect to the Registrable
Securities of any selling Holder that such Holder shall furnish to the Company such information
regarding itself, the Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder’s Registrable
Securities.

     (d) Expenses of Registration. All expenses (other than underwriting discounts and
commissions) incurred in connection with registrations, filings or qualifications pursuant to
Sections 2(a), 2(b) and 2(c), including, without limitation, all registration, filing and
qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the
Company and the reasonable fees and disbursements of one counsel for the selling Holders shall be
borne by the Company.

 

 

     (e) Indemnification; Contribution.

     In the event of a registration of any of the Registrable Securities under the Securities Act
pursuant to this Article 2, the Company will indemnify and hold harmless each seller of such
Registrable Securities thereunder, each underwriter of such Registrable Securities thereunder and
each other Person, if any, who controls such seller or underwriter within the meaning of the
Securities Act, against any losses, claims, damages or liabilities, joint or several, to which
such seller, underwriter or controlling Person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in any registration statement under which such Registrable Securities were
registered under the Securities Act pursuant to this Article II, any preliminary prospectus or
final prospectus contained therein, or any amendment or supplement thereof, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, or (iii) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act, any federal, state or other securities law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any federal or state
securities law in connection with the offering covered by such registration statement and the
Company will reimburse each such seller, each such underwriter and each such controlling Person
for any legal or other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action, including amounts paid in settlement
thereof; provided, however, that the Company will not be liable in any such case
if and to the extent that any such loss, claim, damage or liability arises out of or is based upon
an untrue statement or alleged untrue statement or omission or alleged omission which occurs in
reliance upon or in connection with written information furnished expressly for use in connection
with such registration by any such seller, any such underwriter or any such controlling Person.

     In the event of a registration of any of the Registrable Securities under the Securities Act
pursuant to this Article 2, each seller of such Registrable Securities thereunder, severally and
not jointly, will indemnify and hold harmless the Company, each Person, if any, who controls the
Company within the meaning of the Securities Act, each officer of the Company who signs the
registration statement, each director of the Company, each underwriter and each Person who
controls any underwriter within the meaning of the Securities Act, against all losses, claims,
damages or liabilities, joint or several, to which the Company or such officer, director,
underwriter or controlling Person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in the registration statement under which such Registrable Securities were registered
under the Securities Act pursuant to this Article 2, any preliminary prospectus or final
prospectus contained therein, or any amendment or supplement thereof, or arise out of or are
based upon the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and will reimburse the
Company and each such officer, director, underwriter and controlling Person for any legal or
other expenses reasonably incurred by them in connection with investigating or defending any such
loss, claim, damage, liability or action, provided, however, that such seller
will be liable hereunder in any such case if and only to the extent that any such loss, claim,
damage or

 

 

liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in reliance upon or in connection with written information
furnished by such seller expressly for use in connection with such registration, and
provided, further, however, that the liability of each seller hereunder
shall be limited to the proportion of any such loss, claim, damage, liability or expense which is
equal to the proportion that the public offering price of the shares sold by such seller under
such registration statement bears to the total public offering price of all securities sold
thereunder, but not in any event to exceed the net proceeds received by such seller from the sale
of Registrable Securities covered by such registration statement.

     Promptly after receipt by an indemnified party hereunder of notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be made against an
indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission
so to notify the indemnifying party shall not relieve it from any liability which it may have to
such indemnified party other than under this Section 2(e) and shall only relieve it from any
liability which it may have to such indemnified party under this Section 2(e) if and to the
extent the indemnifying party is prejudiced by such omission. In case any such action shall be
brought against any indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate in and, to the
extent it shall wish, to assume and undertake the defense thereof with counsel reasonably
satisfactory to such indemnified party, and, after notice from the indemnifying party to such
indemnified party of its election so to assume and undertake the defense thereof, the
indemnifying party shall not be liable to such indemnified party under this Section 2(e) for any
legal expenses subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation and of liaison with counsel so selected,
provided, however, that, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that there may be reasonable defenses available to it which are different from or
additional to those available to the indemnifying party or if the interests of the indemnified
party reasonably may be deemed to conflict with the interests of the indemnifying party, the
indemnified party shall have the right to select a separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the expenses and fees
of such separate counsel and other expenses related to such participation to be reimbursed by the
indemnifying party as incurred. The indemnifying party shall not be liable to indemnify any
indemnified party for any settlement of any action effected without the indemnifying party’s
consent (which consent shall not be unreasonably withheld or delayed). The indemnifying party
shall not, except with the approval of each party being indemnified under this Section 2(e)(iii),
consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving of the claimant or the plaintiff to the parties being so
indemnified of a release from all liability in respect to such claim or litigation.

     In order to provide for just and equitable contribution to joint liability under the
Securities Act in any case in which either (i) any holder of Registrable Securities exercising
rights under this Agreement, or any controlling Person of any such holder, makes a claim for
indemnification pursuant to this Section 2(e) but it is judicially determined (by the entry of a
final judgment or decree by a court of competent jurisdiction and the expiration of time to

 

 

appeal or the denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 2.05 provides for indemnification
in such case, or (ii) contribution under the Securities Act may be required on the part of any
such selling holder or any such controlling Person in circumstances for which indemnification is
otherwise required under this Section 2(e); then, and in each such case, the Company and such
holder will contribute to the aggregate losses, claims, damages or liabilities to which they may
be subject (after contribution from others) in such proportion as is appropriate to reflect the
relative fault of the Company on the one hand and of the holder of Registrable Securities on the
other in connection with the statements or omissions which resulted in such losses, claims,
damages or liabilities, as well as any other relevant equitable considerations or, if the
allocation provided herein is not permitted by applicable law, in such proportion as shall be
appropriate to reflect the relative benefits received by the Company and any holder of Registrable
Securities from the offering of the securities covered by such registration statement. The
relative fault of the Company on the one hand and of the holder of Registrable Securities on the
other shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or by the holder of Registrable
Securities on the other, and each party’s relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission; provided, however,
that, in any such case, (A) no such holder will be required to contribute any amount in excess of
the public offering price of all such Registrable Securities offered by it pursuant to such
registration statement, but not in any event to exceed the net proceeds received by such seller
from the sale of Registrable Securities covered by such registration statement; and (B) no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
will be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

          The obligations of the Company and Holders under this Section 2(e) shall survive the
completion of any offering of Registrable Securities in a registration statement under this
Article 2 and shall survive the termination of this Agreement.

     (f) Reports Under the Exchange Act. With a view to making available to the Holders the
benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the
SEC that may at any time permit a Holder to sell securities of the Company to the public without
registration, the Company agrees that after the Company is subject to the reporting requirements
of the Exchange Act it will use its best efforts to:

	 	(i)	 	make and keep public information available, as those terms are
understood and defined in SEC Rule 144;
	 
	 	(ii)	 	file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;
and
	 
	 	(iii)	 	furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (a) a written statement by the Company that
it has complied with the reporting requirements of SEC Rule 144, the Securities
Act and the Exchange Act (at any time after it has become subject to such
reporting

 

 

	 	 	 	requirements), (b) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company, and (c) such
other information as may be reasonably requested in availing any Holder of any
rule or regulation of the SEC that permits the selling of any such securities
without registration or pursuant to such form.

     (g) Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Article 2 may be assigned (but only with all related
obligations) by a Holder to a transferee or assignee of such Registrable Securities, provided
that: (A)-the Company is, within a reasonable time after such transfer, furnished with written
notice of the name and address of such transferee or assignee and the securities with respect to
which such registration rights are being assigned; (B) such transferee or assignee agrees in
writing to be bound by and subject to the terms and conditions of this Agreement; and (C) such
assignment shall be effective only if immediately following such transfer the further disposition
of such securities by the transferee or assignee is restricted under the Securities Act.

     (h) “Market Stand-Off’ Agreement. Each Holder hereby agrees that it will not, without the
prior written consent of the managing underwriter, during the period commencing on the date of
the final prospectus relating to the Initial Public Offering and ending on the date specified by
the Company and the managing underwriter (such period not to exceed one (1) year, (i) lend,
offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer
or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock (whether such shares or any such securities
are then owned by the Holder or are thereafter acquired), or (ii) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing provisions of this Section 2(h) shall (a) apply only to the Initial Public Offering,
(b) not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement,
and (c) apply to the Holders only if all officers and directors and greater than one percent (1%)
stockholders of the Company enter into similar agreements, and if any of the provisions of such
agreements are waived or terminated with respect to any of such persons, the foregoing provisions
shall be waived or terminated with respect to each Holder to the same extent. In order to enforce
the foregoing covenant, the Company may impose stop-transfer instructions with respect to the
Registrable Securities of each Holder (and the shares or securities of every other Person subject
to the foregoing restriction) until the end of such period.

     (i) Termination of Registration Rights. The Company shall have no obligation to
include Registrable Securities in a Company-initiated registration filed after the earlier to
occur of (a) the fifth anniversary of the Company’s Initial Public Offering (such fifth
anniversary, the “Fifth Anniversary Date”) or (b) all Registrable Securities of the Holders are
eligible for sale without restriction under Rule 144(k).

3. RIGHT OF FIRST REFUSAL

 

 

     (a) Restrictions on Transfer. New Light may not transfer any of the Securities without
first complying with this section; provided, however, that New Light shall be
permitted to transfer the Securities to its shareholder, provided that the transferee delivers
to the Company a written instrument agreeing to be bound by the terms of this Agreement.

     (b) Notice of Proposed Transfer. If New Light desires to transfer any of the Securities in
any transaction, it shall first deliver written notice of his, her or its desire to do so (the
“Notice”) to the Company, in the manner prescribed in this Agreement. The Notice must specify: (a)
the name and address of the party to which New Light proposes to sell or otherwise dispose of the
Securities (the “Offeror”), (b) the Securities it proposes to sell or otherwise dispose of (the
“Offered Securities”), (c) the consideration per Warrant or share of Common Stock to be delivered
to New Light for the proposed sale, transfer or disposition, and (d) all other material terms and
conditions of the proposed transaction.

     (c) The Company shall have the first option to purchase all or any part of the
Securities for the consideration per share and on the terms and conditions specified in the
Notice. Such option shall be exercised by delivery by the Company of written notice to New Light
(the “Company Notice”) within 15 days after receipt of the Notice from New Light. The Company
shall deliver copies of such Company Notice to the Founder.

     (d) The closing of the purchase of the Offered Securities shall take place at the offices of
the Company no later than five days after the date of the Company Notice. The Company shall not
have any right to purchase any of the Offered Securities hereunder unless the Company exercises
their option to purchase all of the Offered Securities

     (e) To the extent that the consideration proposed to be paid by the Offeror for the
Offered Securities consists of property other than cash or a promissory note, the
consideration required to be paid by the Company exercising their options under this section may
consist of cash equal to the value of such property, as determined in good faith by agreement of
New Light and the Company.

     (f) In the event the Company does not exercise its option in full within such time periods
specified in this section with respect to all of the Offered Securities, the Company shall
provide notice of such decision (the “Non-Exercise Notice”).

     (g) The closing of the purchase of the Remaining Securities shall take place no later than
five days after the expiration of the latest 15-day period specified in Section 3(f).

     (h) Notwithstanding the foregoing, in the event the Company does not purchase all of
the Offered Securities within the time periods prescribed by this section, New Light may sell any
or all of the Offered Securities only upon the same terms set forth in the Notice within 30 days
after the expiration of the last 15-day notice period. If such transaction is not consummated
within such 30-day period, then New Light must again comply with this section.

4. GENERAL PROVISIONS

     (a) Notices. Unless otherwise provided, any notice required or permitted under this

 

 

Agreement shall be given in writing and shall be deemed given effectively upon personal
delivery to the party to be notified or upon delivery by confirmed facsimile-transmission,
internationally-recognized overnight courier service, or by registered or certified U.S. mail
postage prepaid and addressed to the party to be notified at the address indicated for such party
on the signature page hereof, or at such other address as such party may designate by ten days’
advance written notice to the other parties.

     (b) Entire Agreement. This Agreement constitutes the full and entire understanding and
agreement among the parties with regard to the subjects hereof and thereof.

     (c) Amendment and Waiver. This Agreement may not be amended or waived except in a writing
executed by the Company and New Light/

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

     (e) Successors and Assigns. Except as otherwise provided herein, the terms and conditions
of this Agreement shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties (including transferees of any shares of Registrable Securities).
Nothing in this Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

     (f) Governing Law. This Agreement shall be governed by and construed under the internal laws
of the State of New York, without regard to conflicts of law rules of such state.

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

     (h) Counterparts; Execution by Facsimile. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. This Agreement may be executed by facsimile signature(s)
which shall be binding on the party delivering same, to be followed by delivery of originally
executed signature pages.

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

 

 

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

	 	 	 	 	 
	ICUITI CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Paul J. Travers	 	 
	 

	 	 	 	 
	Name:

	 	Paul J. Travers	 	 
	Title:

	 	President	 	 
	 
	 	 	 	 
	NEW LIGHT INDUSTRIES, LTD.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Steve McGrew	 	 
	 

	 	 	 	 
	Name:

	 	Steve McGrew	 	 
	Title:

	 	President

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