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Exhibit 4.2    
  

        UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), 55 WATER STREET, NEW YORK, NEW
YORK, TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

        THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING SET FORTH IN THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF DTC OR A NOMINEE OF DTC. THIS NOTE IS EXCHANGEABLE FOR
NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE OF
DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ITS NOMINEE TO A SUCCESSOR DEPOSITORY OR ITS NOMINEE. 

Registered
No.001 

$250,000,000

CUSIP
No. 648053 AA 4 

NEW
PLAN EXCEL REALTY TRUST, INC. 

5.875%
SENIOR NOTE DUE 2007 

        NEW
PLAN EXCEL REALTY TRUST, INC., a corporation duly organized and existing under the laws of the State of Maryland (herein referred to as the "Company," which term shall include
any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or registered assigns, upon presentation, the principal sum of
Two Hundred Fifty Million Dollars ($250,000,000) on June 15, 2007 (the "Stated Maturity Date"), unless redeemed in full prior to the Stated Maturity Date, and to pay interest on the outstanding
principal amount thereof from June 18, 2002 or from the immediately preceding Interest Payment Date (as defined below) to which interest has been paid or duly provided for,
semi-annually in arrears on June 15 and December 15 in each year (each, an "Interest Payment Date"), commencing December 15, 2002, at the rate of 5.875% per annum,
until the entire principal hereof is paid or made available for payment. The interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Note is registered at the close of business on the Regular Record Date for such interest, which shall be the June 1 or December 1
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date, and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee (as defined below), notice whereof shall be given to Holders of the Notes not more than 15 days and not less than 10 days prior to such Special Record
Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes (as defined below) may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the Indenture. 

        Payment
of the principal of and Make-Whole Amount (as defined below), if any, and interest on this Note on the Stated Maturity Date or date of earlier redemption will be made
in same day funds against presentation and surrender of this Note at the office or agency maintained for that purpose in 

 

the City of New York, or elsewhere as provided in the Indenture, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts; provided, however, that at the option of the Company payments of principal and interest on the Notes (other than payments of principal and Make-Whole Amount, if any, and interest
due on the Stated Maturity Date or date of earlier redemption) may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided
further, that interest due on an Interest Payment Date on or prior to a date previously set for redemption will be paid on such Interest Payment Date to the holder of this Note on the applicable
Regular Record Date. Interest on this Note will be computed on the basis of a 360-day year of twelve 30-day months. 

        This
Note will be part of a series of debt securities of the Company (herein called the "Debt Securities") titled "5.875% Senior Notes Due 2007" (herein called the "Notes"), issued and
to be
issued in one or more series under an Indenture, dated as of February 3, 1999 (the "Indenture"), by and among the Company, New Plan Realty Trust, as guarantor, and State Street Bank and Trust
Company, as trustee (herein called the "Trustee," which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are
authenticated and delivered. 

        This
Note may be redeemed at any time at the option of the Company, in whole or in part, in accordance with the terms of Article Eleven of the Indenture, at a redemption price equal to
the sum of (i) the principal amount being redeemed plus unpaid interest accrued thereon to the redemption date and (ii) the Make-Whole Amount, if any, with respect thereto. 

        Notwithstanding
anything in the Indenture to the contrary, "Make-Whole Amount" means, in connection with any optional redemption of any Notes, the excess, if any, of: 

	•
	the
aggregate present value as of the Redemption Date of each dollar of principal being redeemed and the amount of interest, exclusive of interest accrued to
the Redemption Date, that would have been payable in respect of each dollar if the redemption had not been made, determined by discounting, on a semi-annual basis, such principal and interest at the
Reinvestment Rate (as defined below), determined on the third business day preceding the date notice of the redemption is given, from the respective dates on which such principal and interest would
have been payable if the redemption had not been made, to the Redemption Date; over

	•
	the
aggregate principal amount of the Notes being redeemed. 

        "Reinvestment
Rate" means a rate per annum equal to the sum of 0.25% plus the arithmetic mean of the yields under the headings "Week Ending" published in the most recent Statistical
Release under the caption "Treasury Constant Maturities" for the maturity (rounded to the nearest month) corresponding to the remaining life to maturity of the Notes, as of the payment date of the
principal being redeemed. If no maturity exactly corresponds to the maturity, yields for the two published maturities most closely corresponding to that maturity shall be calculated pursuant to the
immediately preceding sentence and the Reinvestment Rate shall be interpolated or extrapolated from those yields on a straight-line basis, rounding each of the relevant periods to the
nearest month. For purposes of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the Make-Whole Amount shall be used. 

        "Statistical
Release" means the statistical release designated "H.15(519)" or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System
and which reports yields on actively traded United States government securities adjusted to constant maturities or, if the statistical release is not published at the time of any determination of the
Make-Whole Amount, then such other reasonably comparable index which shall be designated by us. 

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        The
Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of the Company on this Note and (b) certain restrictive covenants and the
related defaults and Events of Default applicable to the Company, in each case, upon compliance by the Company with certain conditions set forth in the Indenture, which provisions apply to this Note. 

        If
an Event of Default with respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in
the Indenture. 

        As
provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given written notice to the Trustee of a continuing Event of Default with respect to
the Notes, the Holders of not less than 25% in principal amount of the Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity and the Trustee shall not have received from the Holders of a majority in principal amount of the Notes at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall
not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal hereof or any Make-Whole Amount or interest hereon on or after the respective
due dates expressed herein. 

        The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the Outstanding Debt Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal
amount of the Outstanding Debt Securities of each series of the Notes then Outstanding affected thereby (voting as one class). The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Company with certain provisions of the Indenture
and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders
of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

        No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and Make-Whole Amount, if any) and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

        As
provided in the Indenture and subject to certain limitations therein and herein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this
Note for registration of transfer at the office or agency of the Company in any Place of Payment where the principal of (and Make-Whole Amount, if any) and interest on this Note are
payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder hereof or his or her attorney
duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

        The
Notes are issuable only in registered form in denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject to certain limitations therein and
herein set forth, this Note is exchangeable for a like aggregate principal amount of Notes of this series of a different authorized denomination, as requested by the Holder surrendering the same. 

3

 

        No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. 

        Prior
to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

        No
recourse under or upon any obligation, covenant or agreement contained in the Indenture or in this Note, or because of any indebtedness evidenced hereby or thereby, shall be had
against any promoter, as such, or against any past, present or future stockholder, officer or director, as such, of the Company or of any successor, either directly or through the Company or any
successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly
waived and released by the acceptance of this Note by the Holder thereof and as part of the consideration for the issue of the Notes. 

        All
capitalized terms used but not otherwise defined in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

        THE
INDENTURE AND THE NOTES, INCLUDING THIS NOTE, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

        Pursuant
to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused a "CUSIP" number to be printed on the Notes as a
convenience to the Holders of such Notes. No representation is made as to the correctness or accuracy of such CUSIP number as printed on the Notes, and reliance may be placed only on the other
identification numbers printed hereon. 

        Unless
the certificate of authentication hereon has been executed by or on behalf of the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose. 

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        IN
WITNESS WHEREOF, NEW PLAN EXCEL REALTY TRUST, INC. has caused this instrument to be duly executed under its corporate seal. 

Dated:
June 18, 2002 

	 	 	NEW PLAN EXCEL REALTY TRUST, INC.
	

 	
 	

By:	

 Name:

Title:
	

 	
 	

 	

 
	[Corporate Seal]	 	 	 
	

 	
 	

 	

 
	Attest:	 	 	 
	

 	
 	

 	

 
	
 Steven F. Siegel

Secretary	 	 	 

5

 

TRUSTEE'S
CERTIFICATE OF AUTHENTICATION: 

        This
is one of the Notes of the series designated therein referred to in the within-mentioned Indenture. 

	 	 	STATE STREET BANK AND TRUST COMPANY, as Trustee
	

 	
 	

By:	

 Name:

Title:

6

 
ASSIGNMENT
FORM 

FOR
VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers unto 

PLEASE
INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE 

(Please Print or Typewrite Name and Address including

Zip Code of Assignee) 

the within Note of New Plan Excel Realty Trust, Inc. and hereby does irrevocably

constitute and appoint 

                                        
        
Attorney to transfer said Note on the books of the within-named Company with full power of substitution in the premises. 

	Dated:	

	

 	

 
	 	

NOTICE:
The signature to this assignment must correspond with the name as it appears on the first page of the within Note in every particular, without alteration or enlargement or any change whatever. 

7

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Exhibit 4.2QuickLinks
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EXHIBIT 4.1    
  

CONFIDENTIAL  

May 31,
2001 

Mr. Kris
Shah

Chairman and Chief Executive Officer

Litronic Inc.

17861 Cartwright Road

Irvine, California 92614 

Mr. Marvin
Winkler

Chief Executive Officer

SSP Solutions, Inc.

2030 Main Street, Suite 1250

Irvine, California 92614 

Dear
Gentlemen: 

        It
is our understanding that Biz Interactive Zone ("BIZ") and Litronic, Inc. ("LTNX" and together with BIZ, the "Merger Parties") intend to merge and hereby are jointly and
severally engaging Tucker Anthony Sutro Capital Markets ("TAS")to act as exclusive financial advisor and placement agent for the Merger Parties and subsequently the merged company S SP
Solutions, Inc. (together the "Company"). This letter will confirm that the Company has engaged TAS to act as exclusive placement agent for the private or public placement (the "Placement") of
equity securities (the "Securities"), generally in accordance with the attached "Summary of Terms". Such Placement of the Securities or Transaction and our engagement pursuant to this letter agreement
(the "Agreement") shall be referred to as the "Engagement." The Engagement is contingent upon the consummation of the merger between LTNX and BIZ. 

        1)    Scope of the Engagement.    TAS will assist the Company as follows: 

        a)    Placement.    TAS will assist the Company in effecting the Placement on the terms and conditions of this
Agreement. In this regard, we propose to undertake the following activities, to the extent each is appropriate, on your behalf: 

          i)  Advising
the Company as to the form and structure of the Placement; 

          ii)  Assisting
the Company and its counsel in the preparation of an Offering Memorandum (the "Memorandum") concerning the Company and the Securities. Responsibility for the
contents of such Memorandum shall be solely that of the Company, and, to protect the Company, the Memorandum shall not be made available to, or used in discussions with, prospective investors by TAS
until both the Memorandum and its use for those purposes have been approved by the Company; 

        iii)  Identifying
and introducing to, and consulting as to strategy for initiating discussions with, potential Investors; 

        iv)  Using
its best efforts to place the Securities with Investors; 

          v)  Negotiating
the sale of the Securities to Investors; and 

        vi)  Assisting
in the preparation of definitive documentation for the Placement 

        b)    Company Information.    In connection with TAS's engagement, the Company represents that to the best of its
knowledge all of the data, material, and information concerning the 

1

 

Company (the "Information") furnished to TAS by it and its advisors and agents shall be accurate and complete in all material respects at the time furnished; and further agrees that if any of such
Information becomes inaccurate, misleading or incomplete during the term of TAS's engagement hereunder, the Company shall promptly so advise TAS in writing and correct any such inaccuracy or omission.
The Company acknowledges that it is the exclusive source of such Information. The Company recognizes and confirms that TAS, in advising the Company and undertaking the Engagement assignment, will be
using and relying on the Information without independent verification or investigation and without performing any appraisal of the assets or businesses of the Company. The Company authorizes TAS to
use and deliver the Information, and any other data obtained by TAS from reliable published sources, to potential Investors. Pursuant to non-disclosure agreements, TAS agrees to keep any
nonpublic information confidential so long as it remains non-public, unless disclosure is required by law or requested by any governmental or regulatory agency or body, and TAS will not
make any use thereof, except for TAS's services for the Company as described in this Agreement. 

        c)    Memorandum.    TAS will assist the Company and its counsel in the preparation of a Memorandum and the Company
will provide TAS with the number of copies of such Memorandum as TAS shall request. The Company shall represent that the Memorandum and the Information are complete and correct in all material aspects
and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances under which
such statements are made, other than information furnished to the Company by TAS. 

        2)    Term and Termination Rights.    It is understood that the Company is engaging TAS on an exclusive basis to act
as exclusive financial advisor and lead placement agent in connection with the Placement for a period (the "Exclusivity Period") commencing as of the date of the Agreement, and ending on the earlier
of the closing of the sale of the Securities or six months from the date hereof. It is our mutual understanding that there may be a co-placement agent, currently anticipated to be L.H.
Friend, Weinress, Frankson & Presson, LLC. The split of compensation for this Engagement between TAS and a possible co-placement agent will be agreed upon between TAS and the
co-placement agent and approved by the Company. The Exclusivity Period may be renewed for successive periods upon mutual written consent of the Company and TAS. In addition, TAS may, at
its sole option, terminate this Engagement without liability if a material adverse change has occurred in the Company's financial condition, results of operations, properties, business or prospects,
or the composition of the Company's management or Board of Directors, which, has a material adverse affected on the Engagement. 

        It
is expressly understood that the provisions in this Agreement relating to the payment of fees and expenses will survive any such termination of the Engagement or completion of TAS's
services pursuant to this Agreement. The Company shall be obligated to pay TAS any Fees or Warrants (as these terms are defined in section 3 below) if during the Exclusivity Period or within
the three-month period following the termination of this Engagement the Company receives written commitments from any Investor introduced to the Company by TAS and such Investor commenced
negotiations, meaning an exchange of diligence materials, and an exchange of terms for an investment in the Placement. It is also understood that during the term of this Agreement the Company will
notify TAS of all solicitations and
conversations with potential investors in connection with the potential purchase of the Securities. It is understood that TAS's involvement in the Placement is strictly on a best efforts basis and the
consummation of the Placement will be subject to, among other things, prevailing market conditions. 

2

 

        3)    Compensation.    TAS's compensation for its services performed pursuant to this Agreement will be based upon a
success fee determined as follows: 

        a)    A
non-refundable retainer of $25,000, payable within ten (10) days of the consummation of the merger between LTNX and BIZ. This retainer shall be
credited against any cash fees and expenses payable to TAS pursuant to section 3(b) or 4. 

        b)    An
advisory fee (the "Advisory Fee") equal to a six percent (6.0%) of the amount raised in the Placement. The Advisory Fee will be payable in cash upon the closing of the
Placement and receipt of funds by the Company. 

        c)    A
warrant ("Warrant") to purchase shares of common stock equal to five percent (5%) of the shares of common stock into which the Securities sold in the Placement are
convertible. The Warrant will be granted upon the closing of the Placement. The Warrant shall have a five year term and shall have a strike price equal to 135% of the average closing price of the
common stock for the twenty trading days prior to closing. The Warrant shall contain a cashless exercise provision. The holders of the warrant shall be entitled to unlimited "piggyback" registration
rights during the first five years following the Placement. The Company shall bear all costs and expenses in connection with such registrations. 

        Notwithstanding
the foregoing, TAS agrees to accept 50% of its fee outlined in 3 (b) and (c) relating to potential investments by the following four potential investors or any of
their affiliates: (1) Broadcom Corporation, (2) Electronic Data Systems Corporation. (3) Dr. Henry T. Nicholas III and (4) Dr. Henry Samueli. 

        4)    Fees and Expenses.    In addition to the foregoing fees, and irrespective of whether the transaction
contemplated by this Agreement is consummated. the Company agrees, upon TAS's request to promptly reimburse TAS for all reasonable out-of-pocket expenses arising out of this
Engagement, including but not limited to, such costs as printing, travel. accommodations, meals, telephone, facsimile, courier service, copying, direct computer expenses and the reasonable fees and
disbursements of TAS's legal counsel, if any. Additionally, the Company agrees to pay the reasonable fees and disbursements of any special counsel for the Investors, upon completion of this Placement.
All such fees, expenses and costs will be billed not more frequently than monthly and are payable by the Company promptly upon receipt of TAS's request. Upon termination or expiration of the
Agreement, any unreimbursed fees and
expenses will be immediately due and payable. Such fees and expenses shall not exceed $25,000 without the prior written approval from the Company, which will not be unreasonably withheld. 

        5)    Indemnification.    In connection with the Engagement of TAS hereunder, the Company has entered into a separate
letter agreement, dated as of me date hereof (the "Indemnification Agreement"), providing for the indemnification of TAS and certain related patties by the Company. 

        6)    Sale Transaction.    If during the Exclusivity Period, and prior to any closing of the Placement, the Company
consummates a Sale Transaction (as defined below) or reaches a definitive agreement which subsequently results in a Sale Transaction or a transaction that has substantially similar effect, the Company
agrees to pay or cause to be paid to TAS, a sale transaction fee (the "Sale Transaction Fee") equal to a percentage of the Aggregate Consideration (as defined below) as follows: 

	Aggregate Consideration
 
	 	Percentage Fee
	 
	Less than $100 million	 	1.50	%
	Between $100 million and $125 million	 	1.25	%
	Cheater Ban $125 million	 	1.00	%

        The
term "Aggregate Consideration" shall be defined to include cash, equity securities, the fair market value of revolving credit facilities, straight and convertible debt instruments or
other obligations, and any other form of payment or assumption of obligations made to the Company or its shareholders 

3

 

in connection with the Sale Transaction. If any of the consideration to be received by the Company is contingent upon future performance of me Company's operations (e. g. revenues or income),
the portion of the Sale Transaction fee attributable to such contingent consideration shall be paid to TAS at such time or times as the Company receives such consideration. 

        7)    Right of First Refusal.    Upon the successful completion of the Placement, the Company shall grant to TAS a
right of first refusal for a two year period to serve as a co-managing underwriter on any public equity financing of the Company ("Future Services"). In the event such Future Services are
undertaken, the Company will use its reasonable efforts to ensure that TAS will receive no less than 20% of the
economic consideration received by the managing underwriters including all gross underwriting commissions, expense reimbursements and warrants issued to the managing underwriters upon the closing of a
public equity financing. In the event the Company notifies TAS of its intention to pursue an activity that would enable TAS to exercise its right of first refusal to provide Future Services, TAS shall
notify the Company, within ten days of its election to provide such Future Services. 

        8)    Private Offering.    TAS agrees that it will offer the securities in a manner which will not impair the
availability of the private offering exemption from federal securities registration provided by Section 4(2) of me Securities Act of 1933, and Regulation D promulgated thereunder, and in
accordance with all applicable securities laws of the jurisdictions in which offers or sales of the Securities are made. The Company shall conduct the Private Placement and shall cooperate with TAS to
ensure that the Private Placement is conducted, in compliance with the private offering exemption from federal securities law registration provided by Section 4(2) of the Securities Act of
1933, and Regulation D promulgated thereunder, and the securities laws of the jurisdictions in which offers and sales of the Securities are made by TAS in accordance with this Agreement. 

        9)    Successors.    This Agreement and all rights and obligations hereunder shall be binding upon and inure to the
benefit of each patty's successors, but may not be assigned without the prior written consent of the other party, which consent shall not be unreasonably withheld. 

        10)    Additional Services.    It is understood that if TAS is asked to provide any additional investment banking
services for the Company, then the Company shall pay to TAS additional fees based on TAS's customary fees for the services rendered and that the terms of the Indemnification Agreement shall apply to
any additional engagement. No other services will be provided by TAS without the prior written approval of the Company. 

        (11)    Contractual Relationship.    The Company expressly acknowledges that TAS has been retained solely as an
advisor and agent to the Company, and not as an advisor to or agent of any other person, and that the Company's engagement of TAS is not intended to confer rights upon any persons not a party hereto
(including shareholders, employees or creditors of the Company) as against TAS or its affiliates or their respective directors, officers, agents and employees. 

        Any
dispute arising from the interpretation, validity or performance of this Agreement and the Indemnification Agreement or any of their terms and provisions shall be submitted to
binding arbitration in accordance with the provisions of the Code of Arbitration Procedure of the National Association of Securities Dealers, Inc. or the Arbitration Rules of the New York Stock
Exchange, and judgment upon the award rendered by the arbitrators (or a majority of the arbitrators) may be entered in any court having jurisdiction thereof. In the event there is any dispute
involving TAS and the Company that is not arbitrated, each of the parties hereby waives its right to a trial by jury. Such arbitration proceeding, or court proceeding if a dispute is not arbitrated,
shall take place in Los Angeles, California. In any such proceeding, the prevailing party shall be entitled to recover from the other its costs and expenses incurred therewith, including reasonable
attorneys' fees. 

        If
any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void, unenforceable or against
its regulatory 

4

 

policy, the remainder of the terms, provisions, covenants and restrictions contained in this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

        In
no event shall the Company be liable for any expenses, or other costs or charges incurred by TAS hereunder unless expressly approved in writing by the Company. 

        This
Agreement contains a predispute arbitration clause. 

        12)    Entire Agreement Governing Law.    This Agreement and the Indemnification Agreement constitute the entire
agreement between TAS and the Company relating to this Engagement and supersedes and takes precedence over all prior agreements or understandings whether oral or written, between TAS and the Company
with respect to this Engagement and may only be modified by written agreement that is signed by both parties. This Agreement and the Indemnification Agreement shall be governed by and construed in
accordance with the laws of the State of California. 

        Please
confirm that the foregoing correctly sets forth our agreement by signing and returning to us the enclosed duplicate copy of this Agreement. We look forward to working with you and
to the successful conclusion of this Engagement. 

        Very
truly yours, 

	 	 	 	TUCKER ANTHONY SUTRO CAPITAL MARKETS, INC.
	

 	

 	
 	

By:	

/s/  FORBES W. BURTT      
 Forbes W. Burtt
 Managing Director
	

Accepted and Agreed to as of the date written above:	
 	

 	

 
	

LITRONIC INC.	
 	

 	

 
	

By:	

/s/  KRIS SHAH      
 Mr. Kris Shah
 Chairman and Chief Executive Officer	
 	

 	

 
	

Accepted and Agreed to as of the date written above:	
 	

 	

 
	

BIZ INTERACTIVE ZONE	
 	

 	

 
	

By:	

/s/  MARVIN J. WINKLER      
 Mr. Marvin J. Winkler
 Chief Executive Officer	
 	

 	

 

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Summary of Terms    
  

	Issuer	 	SSP Solutions, Inc. (the "Company")
	

Stock Exchange Symbol	
 	

SSPX / NASDAQ
	

Issue	
 	

Private Placement of up to approximately $30 million of Convertible Preferred Stock (the "Shares").
	

Term	
 	

10 Years
	

Dividend	
 	

            %. Payable at the option of the Company in cash or in kind.
	

Conversion Price	
 	

Convertible at a slight premium to the market price of the Common Stock.
	

Mandatory Conversion	
 	

At any time after the Issue Date, so long as the average of the daily closing market prices of the issued and outstanding shares of Common Stock during the twenty most recent Trading Days is equal to or greater than 200 percent of the Conversion
Price, the Company shall have the right to require the issued and outstanding shares of Convertible Preferred Stock to be converted, in whole or in part, into shares of Common Stock at the applicable Conversion Price.
	

Ranking and Liquidation Preference	
 	

The Convertible Preferred Stock ranks prior to the common stock upon liquidation. In the event of any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, before any payment or distribution of the assets of the
Company, or proceeds thereof (whether capital or surplus), shall be made to or set apart for the holders of any class or series of stock of the Company ranking junior to the Convertible Preferred Stock upon liquidation, the holders of the Convertible
Preferred Stock shall be entitled to receive $                  per share.
	

Warrant Coverage	
 	

Might require warrant sweetener to close.
	

Investor Qualifications	
 	

Each investor must be an "accredited investor," as defined under Regulation D of the Securities Act of 1933, and must represent and warrant to The Company that it is acquiring the Shares for investment only with no present intention of distributing
any of such Shares.
	
 	
 	

 

6

 

	

Registration of Securities	
 	

The Company shall (i) use commercially reasonable efforts to file a Registration Statement on Form S-3 (the "Registration Statement") relating to resale of the Shares by investors to be filed with the Securities and Exchange Commission
("SEC") within 60 days following the Closing Date, (ii) use commercially reasonable efforts to cause the Registration Statement to be declared effective by the SEC within 120 days following the Closing Date, and (iii) effect such
other registrations, qualifications or compliance (including under applicable state securities laws) as may be reasonably requested by the investors to permit or facilitate the resale of the Shares. If The Company fails to cause the Registration
Statement to be declared effective within such 120-day period, The Company will offer each investor the opportunity to purchase additional Shares at the original issuance price, as set forth in the Registration Rights Agreement.
	

 	
 	

Once declared effective. The Company shall use its commercially reasonable efforts to keep the Registration Statement effective until the earlier of (i) the date on which all of the Shares registered have been sold or (ii) the date on which
all of the Shares registered may be immediately sold without restriction under the Securities Act.
	

Subscription Agreement:	
 	

The Subscription Agreements with each of the investors will contain, among other things, customary representations and warranties of The Company and each investor and conditions to closing, including the approval of the issuance of the Shares by The
Company's stockholders and delivery of opinions of counsel.

7

QuickLinks

EXHIBIT 4.1

Summary of Terms

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