Document:

ex_217845.htm

 

Exhibit 4.1

 

 

DESCRIPTION OF SECURITIES

 

GENERAL

 

RF Industries, Inc. (“RF Industries,” “we” or “our”) is incorporated in the State of Nevada. The following description of our common stock, par value $0.01 per share (“Common Stock”), is a summary and does not purport to be complete. The description of our Common Stock is subject to and qualified in its entirety by reference to our Amended and Restated Articles of Incorporation (the “Articles”), and our Amended and Restated By-Laws (the “Bylaws”), which are incorporated by reference as Exhibit 3.1 and Exhibit 3.2, respectively, to the Annual Report on Form 10-K of which this Exhibit 4.1 is a part (the “10-K”). We encourage you to read the Articles, the Bylaws and the applicable provisions of the Nevada Revised Statutes, Chapter 78 (the “Nevada Code”), for additional information.

 

DESCRIPTION OF COMMON STOCK

 

Authorized Capital Shares. Pursuant to the Articles, our authorized capital stock consists of 20,000,000 shares of Common Stock. All outstanding shares of Common Stock are fully paid and nonassessable.

 

Voting Rights. Each share of our Common Stock is entitled to one vote on all stockholder matters. Except for the election of directors, if a quorum is present, an action on a matter is approved if it receives the affirmative vote of the holders of a majority of the voting power of the shares of capital stock present in person or represented by proxy at the meeting and entitled to vote on the matter, unless otherwise required by applicable law, Nevada law, our Articles or Bylaws. The election of directors will be determined by a plurality of the votes cast in respect of the shares present in person or represented by proxy at the meeting and entitled to vote, meaning that the nominees with the greatest number of votes cast, even if less than a majority, will be elected.

 

Liquidation. In the event of a liquidation, dissolution or winding-up of RF Industries, the holders of Common Stock are entitled to share equally and ratably in the assets of RF Industries, if any, remaining after the payment of all debts and liabilities of RF Industries and the liquidation preference of any outstanding preferred stock.

 

Other Rights and Preferences. The Common Stock has no preemptive rights, no cumulative voting rights, and no redemption, sinking fund, or conversion provisions.

 

Dividends. The declaration and amount of any actual cash dividend are in the sole discretion of RF Industries’ Board of Directors and are subject to various factors that ordinarily affect dividend policy, including our financial condition, results of operations, capital requirements, plans for future acquisitions, contractual restrictions, general business conditions and other factors that our Board of Directors may deem relevant.

 

Size of the Board and Vacancies. Our Bylaws provide that the number of directors shall be not less than two (2) nor more than nine (9). Within the limits specified in our Bylaws, the exact number of directors is determined by resolution of the Board of Directors. Our Board of Directors has the right to fill any vacancies resulting from death, resignation, disqualification or removal, as well as any newly created directorships arising from an increase in the size of the Board. The directors are divided into three classes designated as Class I, Class II and Class III. Each class consist, as nearly as is possible, of one-third of the number of directors constituting the entire Board of Directors.

 

 

 

 

Liability. The Common Stock, after the amount of the purchase price has been paid, shall not be subject to assessment to pay debts of RF Industries; and no paid Common Stock and no Common Stock issued as fully paid up shall ever be assessable or assessed for any purpose whatever; and no holder of Common Stock shall be individually liable for any debt or liability of RF Industries.

 

Statutory Restrictions on Ownership. The Nevada Code contains provisions restricting the ability of a Nevada corporation to engage in business combinations with an interested stockholder. Under the Nevada Code, except under certain circumstances, business combinations with interested stockholders are not permitted for a period of two years following the date such stockholder becomes an interested stockholder. The Nevada Code defines an interested stockholder, generally, as a person who is the beneficial owner, directly or indirectly, of 10% of the outstanding shares of a Nevada corporation. In addition, the Nevada Code generally disallows the exercise of voting rights with respect to “control shares” of an “issuing corporation” held by an “acquiring person” after crossing certain ownership threshold percentages, unless such voting rights are conferred by a majority vote of the disinterested stockholders. “Control shares” are those outstanding voting shares of an issuing corporation which an acquiring person and those persons acting in association with an acquiring person (i) acquire or offer to acquire in an acquisition of a controlling interest and (ii) acquire within ninety days immediately preceding the date when the acquiring person became an acquiring person. An “issuing corporation” is a corporation organized in Nevada which has two hundred or more stockholders, at least one hundred of whom are stockholders of record and residents of Nevada, and which does business in Nevada directly or through an affiliated corporation.

 

National Securities Exchange. The Common Stock is listed on the NASDAQ Global Market under the trading symbol “RFIL”.

 

Transfer Agent and Registrar. The transfer agent and registrar for the Common Stock is Continental Stock Transfer & Trust Company.Exhibit
10.1

 

SUNHYDROGEN,
INC.

 

December
28, 2020

 

Holder
of Common Stock Purchase Warrants

 

	Re:	Inducement
Offer to Exercise Common Stock Purchase Warrants

 

Dear
Holder:

 

SunHydrogen,
Inc. (the “Company”) is pleased to offer to you the opportunity to exercise all of the warrants to purchase
shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), issued to you
on December 3, 2020 (the “Existing Warrants”), as set forth on the signature page hereto and currently held
by you (the “Holder”). The issuance of the shares of Common Stock underlying the Existing Warrants (the “Warrant
Shares”) has been registered pursuant to the registration statements on Form S-3 (File Registration Nos. 333-239632
and 333-251064) (the “Registration Statement”). The Registration Statement is currently effective and, upon
exercise of the Existing Warrants pursuant to this letter agreement, will be effective for the issuance of the Warrant Shares.
Capitalized terms not otherwise defined herein shall have the meanings set forth in the New Warrants.

 

In
consideration for exercising in full all of the Existing Warrants held by you and set forth on the Holder's signature page hereto
(the “Warrant Exercise”) at the exercise price per Warrant Share as set forth in the Existing Warrants of $0.075
per share, the Company hereby offers to issue you or your designee:

 

a
new unregistered Common Stock Purchase Warrant (“New Warrant”) pursuant to Section 4(a)(2) of the Securities
Act of 1933, as amended (“Securities Act”), to purchase up to a number of shares (the “New Warrant
Shares”) of Common Stock equal to 110% of the number of Warrant Shares issued pursuant to the Warrant Exercise hereunder,
which New Warrant shall be substantially in the form as reflected in Exhibit A hereto, will be exercisable immediately,
and have a term of exercise of thirty-six (36) months, and an exercise price per share equal to $0.075.

 

The
original New Warrant certificate(s) will be delivered within three (3) Trading Days following the date hereof. Notwithstanding
anything herein to the contrary, in the event that any Warrant Exercise would otherwise cause the Holder to exceed the beneficial
ownership limitations (“Beneficial Ownership Limitation”) set forth in Section 2(e) of the Existing Warrants
(or, if applicable and at the Holder’s election, 9.99%), the Company shall only issue such number of Warrant Shares to the
Holder that would not cause the Holder to exceed the maximum number of Warrant Shares permitted thereunder, as directed by the
Holder, with the balance to be held in abeyance until notice from the Holder that the balance (or portion thereof) may be issued
in compliance with such limitations, which abeyance shall be evidenced through the Existing Warrants which shall be deemed prepaid
thereafter (including the payment in full of the exercise price), and exercised pursuant to a Notice of Exercise in the Existing
Warrant (provided no additional exercise price shall be due and payable).

 

Expressly
subject to the paragraph immediately following this paragraph below, Holder may accept this offer by signing this letter below,
with such acceptance constituting Holder's exercise in full of the Existing Warrants for an aggregate exercise price set forth
on the Holder’s signature page hereto (the “Warrants Exercise Price”) on or before 11:59 p.m., Eastern
Time, on December 28, 2020 (the “Execution Time”).

 

     

    	 

    

 

Additionally,
the Company agrees to the representations, warranties and covenants set forth on Annex A attached hereto. Holder represents
and warrants to the Company that, as of the date hereof it is, and on each date on which it exercises any New Warrants it will
be, an “accredited investor” as defined in Rule 501 of the Securities Act, and agrees that the New Warrants will contain
restrictive legends when issued, and neither the New Warrants nor the shares of Common Stock issuable upon exercise of the New
Warrants will be registered under the Securities Act, except as provided in Annex A attached hereto. Also, Holder represents
and warrants to the Company that (i) it is acquiring the New Warrants as principal for its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of the New Warrants (this representation
is not limiting Holder’s right to sell the New Warrant Shares pursuant to an effective registration statement under the
Securities Act or otherwise in compliance with applicable federal and state securities laws), and (ii) the Holder understands
that an investment in the Company involves a high degree of risk including risks set forth in the SEC Reports, and the Holder
has had an opportunity to review the SEC Reports.

 

The
Holder understands that the New Warrants and the New Warrant Shares are not, and may never be, registered under the Securities
Act, or the securities laws of any state and, accordingly, each certificate, if any, representing such securities shall bear a
legend substantially similar to the following:

 

“THIS
SECURITY HAS 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 OR SOLD 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.”

 

Certificates
evidencing the New Warrant Shares shall not contain any legend (including the legend set forth above), (i) while a registration
statement covering the resale of such New Warrant Shares is effective under the Securities Act, (ii) following any sale of such
New Warrant Shares pursuant to Rule 144 under the Securities Act, (iii) if such New Warrant Shares are eligible for sale under
Rule 144 (assuming cashless exercise of the New Warrant), without the requirement for the Company to be in compliance with the
current public information required under Rule 144 as to such New Warrant Shares and without volume or manner-of-sale restrictions,
(iv) if such New Warrant Shares may be sold under Rule 144 (assuming cashless exercise of the New Warrant) and the Company
is then in compliance with the current public information required under Rule 144 as to such New Warrant Shares, or (v) if such
legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Securities and Exchange Commission (the “Commission”) and the earliest of clauses
(i) through (v), the “Delegend Date”)). The Company shall cause its counsel to issue a legal opinion to the
Transfer Agent promptly after the Delegend Date if required by the Company and/or the Transfer Agent to effect the removal of
the legend hereunder, or at the request of the Holder, which opinion shall be in form and substance reasonably acceptable to the
Holder. From and after the Delegend Date, such New Warrant Shares shall be issued free of all legends. The Company agrees that
following the Delegend Date or at such time as such legend is no longer required under this Section, it will, no later than two
(2) Trading Days following the delivery by the Holder to the Company or the Transfer Agent of a certificate representing the New
Warrant Shares issued with a restrictive legend (such second (2nd) Trading Day, the “Legend Removal Date”),
deliver or cause to be delivered to the Holder a certificate representing such shares that is free from all restrictive and other
legends or, at the request of the Holder shall credit the account of the Holder’s prime broker with the Depository Trust
Company System as directed by the Holder.  

 

    2

    	 

    

 

In
addition to the Holder’s other available remedies, the Company shall pay to a Holder, in cash, (i) as partial liquidated
damages and not as a penalty, for each $1,000 of New Warrant Shares (based on the VWAP of the Common Stock on the date such New
Warrant Shares are submitted to the Transfer Agent) delivered for removal of the restrictive legend, $10 per Trading Day (increasing
to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal
Date until such certificate is delivered without a legend and (ii) if the Company fails to (a) issue and deliver (or cause to
be delivered) to the Holder by the Legend Removal Date a certificate representing the New Warrant Shares so delivered to the Company
by the Holder that is free from all restrictive and other legends and (b) if after the Legend Removal Date the Holder purchases
(in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all
or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion
of the number of shares of Common Stock that the Holder anticipated receiving from the Company without any restrictive legend,
then, an amount equal to the excess of the Holder’s total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses,
if any) (the “Buy-In Price”) over the product of (A) such number of New Warrant Shares that the Company was
required to deliver to the Holder by the Legend Removal Date and for which the Holder was required to purchase shares to timely
satisfy delivery requirements, multiplied by (B) the lowest closing sale price of the shares of Common Stock on any Trading Day
during the period commencing on the date of the delivery by the Holder to the Company of the applicable Warrant Shares (as the
case may be) and ending on the date of such delivery and payment under this clause (B).  

 

From
the date hereof until thirty (30) days after the Closing Date, neither the Company nor any Subsidiary shall (A) except for Exempt
Issuances (as defined hereunder), issue, enter into any agreement to issue or announce the issuance or proposed issuance of any
Common Stock or Common Stock Equivalents or (B) file any registration statement or any amendment or supplement to any existing
registration statement (other than a resale registration statement or prospectus supplements to the Registration Statements to
reflect the transactions contemplated hereby which the Company may file in its discretion). The Holder, by its signature below,
hereby waives all and any rights whatsoever under Section 4.12(a) of that certain securities purchase agreement, dated as of December
1, 2020, arising in connection with the transactions contemplated by this Agreement.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company
pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of
Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered
to the Company, (b) securities upon the exercise or exchange of or conversion of any securities issued hereunder or issued and
outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement,
(c) any securities issuable to the Placement Agent or its designees in connection herewith or any securities issuable upon conversion
or exercise or exchange of any such securities or (d) securities issued pursuant to acquisitions or strategic transactions approved
by a majority of the disinterested directors of the Company, provided that such securities are issued as “restricted securities”
(as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection
therewith during the thirty day prohibition period included herein, and provided that any such issuance shall only be to a Person
(or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to
the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities.

 

    3

    	 

    

 

If
this offer is accepted and the transaction documents are executed by the Execution Time, then on or before 8:00 a.m., Eastern
Time, on December 29, 2020, the Company shall issue a press release and/or file a Current Report on Form 8-K with the Commission
disclosing all material terms of the transactions contemplated hereunder. From and after the issuance of such press release or
the filing of such Current Report on Form 8-K, as applicable, the Company represents to you that it shall have publicly disclosed
all material, non-public information delivered to you by the Company, or any of its respective officers, directors, employees
or agents in connection with the transactions contemplated hereunder. In addition, effective upon the issuance of such press release
and/or Current Report on Form 8-K, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, agents, employees or Affiliates on the one hand, and you and your Affiliates on the other hand, shall terminate. The
Company represents, warrants and covenants that, upon acceptance of this offer, the Warrant Shares shall be issued free of any
legends or restrictions on resale by the Holder.

 

No
later than the second (2nd) Trading Day following the date hereof, the closing shall occur at such location as the parties shall
mutually agree. Unless otherwise directed by H.C. Wainwright & Co., LLC (the “Placement Agent”), settlement
of the Warrant Shares shall occur via “Delivery Versus Payment” (“DVP”) (i.e., on the Closing Date,
the Company shall issue the Warrant Shares registered in the Holders’ names and addresses and released by the Transfer Agent
directly to the account(s) at the Placement Agent identified by each Holder; upon receipt of such Warrant Shares, the Placement
Agent shall promptly electronically deliver such Warrant Shares to the applicable Holder, and payment therefor shall be made by
the Placement Agent (or its clearing firm) by wire transfer to the Company). The date of the closing of the exercise of the Existing
Warrants shall be referred to as the “Closing Date”.

 

The
Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated
hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its
rights, including, without limitation, the rights arising out of this letter agreement.

 

***************

 

    4

    	 

    

 

	 	Sincerely yours,
	 	 	 
	 	SUNHYDROGEN, INC.
	 	 	 
	 	By:	                     
	 	Name: 	 
	 	Title:	 

 

     

    

    

 

Accepted
and Agreed to:

 

Name
of Holder: ________________________________________________________

 

Signature
of Authorized Signatory of Holder: _________________________________

 

Name
of Authorized Signatory: _______________________________________________

 

Title
of Authorized Signatory: ________________________________________________

 

Number
of Existing Warrants: __________________

 

Aggregate
Warrant Exercise Price: _________________

 

New
Warrants: (110% of total Existing Warrants being exercised): ___________

 

Beneficial
Ownership Blocker: ☐ 4.99% or ☐ 9.99%

 

DTC
Instructions:

 

     

    

    

 

Annex
A

 

Representations,
Warranties and Covenants of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

	a)	SEC
                                         Reports. The Company has filed all reports, schedules, forms, statements and other
                                         documents required to be filed by the Company under the Exchange Act, including pursuant
                                         to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such
                                         shorter period as the Company was required by law or regulation to file such material)
                                         (the foregoing materials, including the exhibits thereto and documents incorporated by
                                         reference therein “SEC Reports”). As of their respective dates, the
                                         SEC Reports complied in all material respects with the requirements of the Exchange Act
                                         and none of the SEC Reports, when filed, contained any untrue statement of a material
                                         fact or omitted to state a material fact required to be stated therein or necessary in
                                         order to make the statements therein, in the light of the circumstances under which they
                                         were made, not misleading. The Company has never been an issuer subject to Rule 144(i)
                                         under the Securities Act.

 

	b)	Authorization;
                                         Enforcement. The Company has the requisite corporate power and authority to enter
                                         into and to consummate the transactions contemplated by this letter agreement and otherwise
                                         to carry out its obligations hereunder and thereunder. The execution and delivery of
                                         this letter agreement by the Company and the consummation by the Company of the transactions
                                         contemplated hereby have been duly authorized by all necessary action on the part of
                                         the Company and no further action is required by the Company, its board of directors
                                         or its stockholders in connection therewith. This letter agreement has been duly executed
                                         by the Company and, when delivered in accordance with the terms hereof, will constitute
                                         the valid and binding obligation of the Company enforceable against the Company in accordance
                                         with its terms, except (i) as limited by general equitable principles and applicable
                                         bankruptcy, insolvency, reorganization, moratorium and other laws of general application
                                         affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
                                         to the availability of specific performance, injunctive relief or other equitable remedies
                                         and (iii) insofar as indemnification and contribution provisions may be limited by applicable
                                         law.

 

	c)	No
                                         Conflicts. The execution, delivery and performance of this letter agreement by the
                                         Company and the consummation by the Company of the transactions contemplated hereby do
                                         not and will not: (i) conflict with or violate any provision of the Company’s certificate
                                         or articles of incorporation, bylaws or other organizational or charter documents; or
                                         (ii) conflict with, or constitute a default (or an event that with notice or lapse of
                                         time or both would become a default) under, result in the creation of any  liens,
                                         claims, security interests, other encumbrances or defects upon any of the properties
                                         or assets of the Company in connection with, or give to others any rights of termination,
                                         amendment, acceleration or cancellation (with or without notice, lapse of time or both)
                                         of, any material agreement, credit facility, debt or other material instrument (evidencing
                                         Company debt or otherwise) or other material understanding to which such Company is a
                                         party or by which any property or asset of the Company is bound or affected; or (iii)
                                         conflict with or result in a violation of any law, rule, regulation, order, judgment,
                                         injunction, decree or other restriction of any court or governmental authority to which
                                         the Company is subject (including federal and state securities laws and regulations),
                                         or by which any property or asset of the Company is bound or affected, except, in the
                                         case of each of clauses (ii) and (iii), such as could not have or reasonably be expected
                                         to result in a material adverse effect upon the business, prospects, properties, operations,
                                         condition (financial or otherwise) or results of operations of the Company, taken as
                                         a whole, or in its ability to perform its obligations under this letter agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}]]