Document:

EXHIBIT 4.4

 

[FORM OF 2008 PLACEMENT AGENT WARRANT]

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN
THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

AMERICAN DEFENSE SYSTEMS, INC.

 

WARRANT TO PURCHASE COMMON SECURITIES

 

Warrant
No.: MT-

 

Number
of Shares of Common Securities:

 

Date
of Issuance: March 7, 2008 (“Issuance
Date”)

 

American
Defense Systems, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged,
                                      ,
the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms
set forth below, to purchase from the Company, at the Exercise Price (as
defined below) then in effect, upon surrender of this Warrant to Purchase
Common Securities (including any Warrants to Purchase Common Securities issued
in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or after the date hereof,
but not after 11:59 p.m., New York time, on the Expiration Date (as
defined below),
                         
fully paid nonassessable shares (the “Warrant
Securities”) of common stock, par value $0.001 per share (the “Common Stock”). 
Except as otherwise defined herein, capitalized terms in this Warrant
shall have the meanings set forth in Section 18.

 

1.     EXERCISE OF WARRANT.

 

(a)   Mechanics of Exercise. 
Subject to the terms and conditions hereof, this Warrant may be
exercised by the Holder on any day on or after the date hereof, in whole or in
part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A
(the “Exercise Notice”), of the
Holder’s election to exercise this Warrant and (ii) (A) payment to
the Company of an amount equal to the applicable Exercise Price multiplied by
the number of Warrant Securities as to which this Warrant is being exercised
(the “Aggregate Exercise Price”)
in cash or by wire transfer of immediately available funds or (B) by
notifying the Company that this

 

 

 

Warrant is being exercised pursuant to a Cashless Exercise (as defined
in Section 1(c)).  The Holder shall
not be required to deliver the original Warrant in order to effect an exercise
hereunder.  Execution and delivery of the
Exercise Notice with respect to less than all of the Warrant Securities shall
have the same effect as cancellation of the original Warrant and issuance of a
new Warrant evidencing the right to purchase the remaining number of Warrant
Securities.  On or before the fifth (5th)
Business Day following the date (the “Security Delivery Date”) on which the Company has received
each of the Exercise Notice and the Aggregate Exercise Price (the “Exercise Delivery Documents”), the Company
shall (X) at any time (A) prior to Public Company Date or (B) after
the Public Company Date if the Company’s transfer agent (the “Transfer Agent”) is not participating in
The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer Program, issue and dispatch by overnight
courier to the address as specified in the Exercise Notice, a certificate,
registered in the share register of the Company in the name of the Holder or
its designee, for the number of Warrant Securities to which the Holder is
entitled pursuant to such exercise or (Y) on or after the Public Company
Date, provided that the Transfer Agent is participating in the DTC Fast
Automated Securities Transfer Program and the Warrant Shares do not require any
legend, upon the request of the Holder, credit such aggregate number of Warrant
Shares to which the Holder is entitled pursuant to such exercise to the
Holder’s or its designee’s balance account with DTC through its Deposit
Withdrawal Agent Commission system.  Upon
delivery of the Exercise Notice and Aggregate Exercise Price referred to in
clause (ii) above, the Holder shall be deemed for all corporate purposes
to have become the holder of record of the Warrant Securities with respect to
which this Warrant has been exercised, irrespective of the date of delivery of
the certificates, if any, evidencing such Warrant Securities.  If this Warrant is submitted in connection
with any exercise pursuant to this Section 1(a) and the number of
Warrant Securities represented by this Warrant submitted for exercise is
greater than the number of Warrant Securities being acquired upon an exercise,
then the Company shall as soon as practicable and in no event later than three (3) Business
Days after any exercise and at its own expense, issue a new Warrant (in
accordance with Section 8(d)) representing the right to purchase the
number of Warrant Securities purchasable immediately prior to such exercise
under this Warrant, less the number of Warrant Securities with respect to which
this Warrant is exercised.  No fractional
Warrant Securities are to be issued upon the exercise of this Warrant, but rather
the number of Warrant Securities to be issued shall be rounded up to the
nearest whole number.

 

(b)   Exercise Price.  For
purposes of this Warrant, “Exercise Price”
means $2.00 (as adjusted for stock splits, stock dividends, recapitalizations,
reorganizations, reclassifications, combinations, reverse stock splits or other
similar events).

 

(c)   Cashless Exercise.  Notwithstanding anything contained
herein to the contrary, from and after the Public Company Date, the Holder may,
in its sole discretion, exercise this Warrant in whole or in part and, in lieu
of making the cash payment otherwise contemplated to be made to the Company
upon such exercise in payment of the Aggregate Exercise Price, elect instead to
receive upon such exercise the “Net Number” of shares of Public Company Stock
determined according to the following formula (a “Cashless Exercise”):

 

 

 

 

 

 

 

 

 

2

 

	
  Net
  Number = (A x B) - (A x C)

  
	
   

  
	
  B

  
	
   

  
	
  For purposes of the
  foregoing formula:

  

 

A= the total number of shares with respect to which this Warrant is
then being exercised.

 

B= the Closing Sale Price of the Public Company Stock (as reported by
Bloomberg) on the date immediately preceding the date of the Exercise Notice.

 

C= the Exercise Price then in effect for the applicable Warrant Shares
at the time of such exercise.

 

(d)           Disputes.  In the case of a dispute as to the
determination of the Exercise Price or the arithmetic calculation of the
Warrant Securities, the Company shall promptly issue to the Holder the number
of Warrant Securities that are not disputed and resolve such dispute in
accordance with Section 13.

 

2.             ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SECURITIES.  The Exercise Price and the number of Warrant
Securities shall be adjusted from time to time as follows:

 

(a)           Adjustment
upon Issuance of Common Securities. 
If and whenever on or after the Subscription Date and through the third
anniversary of the Public Company Date the Company issues or sells, or in
accordance with this Section 2 is deemed to have issued or sold, any
Common Securities (including the issuance or sale of Common Securities owned or
held by or for the account of the Company), but excluding any Excluded
Securities (as such term is defined in the Certificate of Designations) for a
consideration per share (the “New Issuance Price”)
less than the Exercise Price (the “Applicable
Price”) in effect immediately prior to such issue or sale or deemed
issuance or sale (the foregoing a “Dilutive Issuance”), then
immediately after such Dilutive Issuance, the Exercise Price then in effect
shall be reduced to an amount equal to the product of (A) the Exercise
Price in effect immediately prior to such Dilutive Issuance and (B) the
quotient determined by dividing (1) the sum of (I) the product
derived by multiplying the Exercise Price in effect immediately prior to such
Dilutive Issuance and the number of shares of Common Securities Deemed
Outstanding immediately prior to such Dilutive Issuance plus (II) the
consideration, if any, received by the Company upon such Dilutive Issuance, by (2) the
product derived by multiplying (I) the Exercise Price in effect
immediately prior to such Dilutive Issuance by (II) the number of shares
of Common Securities Deemed Outstanding immediately after such Dilutive
Issuance.  Upon each such adjustment of
the Exercise Price hereunder, the number of Warrant Securities shall be
adjusted to the number of Common Securities determined by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Securities acquirable upon exercise of this Warrant immediately prior
to such adjustment and dividing the product thereof by the Exercise Price
resulting from such adjustment.  For
purposes of determining the adjusted Exercise Price under this Section 2(a),
the following shall be applicable:

 

 

 

 

3

 

(i)            Issuance
of Options.  If the Company in any
manner grants any Options and the lowest price per share for which one share of
Common Securities is issuable upon the exercise of any such Option or upon
conversion, exercise or exchange of any Convertible Securities issuable upon
exercise of any such Option is less than the Applicable Price, then such share
of Common Securities shall be deemed to be outstanding and to have been issued
and sold by the Company at the time of the granting or sale of such Option for
such price per share.  For purposes of
this Section 2(a)(i), the “lowest price per share for which one share of
Common Securities is issuable upon exercise of such Options or upon conversion,
exercise or exchange of such Convertible Securities” shall be equal to the sum
of the lowest amounts of consideration (if any) received or receivable by the
Company with respect to any one share of Common Securities upon the granting or
sale of the Option, upon exercise of the Option and upon conversion, exercise
or exchange of any Convertible Security issuable upon exercise of such
Option.  No further adjustment of the
Exercise Price or number of Warrant Securities shall be made upon the actual
issuance of such Common Securities or of such Convertible Securities upon the
exercise of such Options or upon the actual issuance of such Common Securities
upon conversion, exercise or exchange of such Convertible Securities.

 

(ii)           Issuance
of Convertible Securities.  If the
Company in any manner issues or sells any Convertible Securities and the lowest
price per share for which one share of Common Securities is issuable upon the
conversion, exercise or exchange thereof is less than the Applicable Price,
then such share of Common Securities shall be deemed to be outstanding and to
have been issued and sold by the Company at the time of the issuance or sale of
such Convertible Securities for such price per share.  For the purposes of this Section 2(a)(ii),
the “lowest price per share for which one share of Common Securities is
issuable upon the conversion, exercise or exchange” shall be equal to the sum
of the lowest amounts of consideration (if any) received or receivable by the
Company with respect to one share of Common Securities upon the issuance or
sale of the Convertible Security and upon conversion, exercise or exchange of
such Convertible Security.  No further
adjustment of the Exercise Price or number of Warrant Securities shall be made
upon the actual issuance of such Common Securities upon conversion, exercise or
exchange of such Convertible Securities, and if any such issue or sale of such
Convertible Securities is made upon exercise of any Options for which
adjustment of this Warrant has been or is to be made pursuant to other
provisions of this Section 2(a), no further adjustment of the Exercise
Price or number of Warrant Securities shall be made by reason of such issue or
sale.

 

(iii)          Change
in Option Price or Rate of Conversion. 
If the purchase price provided for in any Options, the additional
consideration, if any, payable upon the issue, conversion, exercise or exchange
of any Convertible Securities, or the rate at which any Convertible Securities
are convertible into or exercisable or exchangeable for Common Securities
increases or decreases at any time, the Exercise Price and the number of
Warrant Securities in effect at the time of such increase or decrease shall be
adjusted to the Exercise Price and the number of 

 

 

 

 

 

 

 

 

 

 

4

 

Warrant Securities which
would have been in effect at such time had such Options or Convertible
Securities provided for such increased or decreased purchase price, additional
consideration or increased or decreased conversion rate, as the case may be, at
the time initially granted, issued or sold. 
For purposes of this Section 2(a)(iii), if the terms of any Option
or Convertible Security that was outstanding as of the date of issuance of this
Warrant are increased or decreased in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the Common
Securities Stock deemed issuable upon exercise, conversion or exchange thereof
shall be deemed to have been issued as of the date of such increase or
decrease.  No adjustment pursuant to this
Section 2(a) shall be made if such adjustment would result in an
increase of the Exercise Price then in effect or a decrease in the number of
Warrant Securities.

 

(iv)          Calculation
of Consideration Received.  In case
any Option is issued in connection with the issue or sale of other securities
of the Company, together comprising one integrated transaction (x) the
Options will be deemed to have been issued for a value determined by use of the
Black Scholes Option Pricing Model (the “Option Value”)
and (y) the other securities issued or sold in such integrated transaction
shall be deemed to have been issued for the difference of (I) the
aggregate consideration received by the Company, less (II) the Option
Value.  If any Common Securities, Options
or Convertible Securities are issued or sold or deemed to have been issued or
sold for cash, the consideration received therefor will be deemed to be the net
amount received by the Company therefor. 
If any Common Securities, Options or Convertible Securities are issued
or sold for a consideration other than cash, the amount of such consideration
received by the Company will be the fair value of such consideration, except
where such consideration consists of publicly traded securities, in which case
the amount of consideration received by the Company will be the Closing Sale
Price of such security on the date of receipt. 
If any Common Securities, Options or Convertible Securities are issued
to the owners of the non-surviving entity in connection with any merger in
which the Company is the surviving entity, the amount of consideration therefor
will be deemed to be the fair value of such portion of the net assets and
business of the non-surviving entity as is attributable to such Common
Securities, Options or Convertible Securities, as the case may be.  The fair value of any consideration other
than cash or publicly traded securities will be determined jointly by the
Company and the Holder.  If such parties
are unable to reach agreement within ten (10) days after the occurrence of
an event requiring valuation (the “Valuation  Event”),
the fair value of such consideration will be determined within five (5) Business
Days after the tenth day following the Valuation Event by an independent,
reputable appraiser jointly selected by the Company 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

and the Holder.  The
determination of such appraiser shall be final and binding upon all parties absent
manifest error and the fees and expenses of such appraiser shall be borne by
the Company.

 

(v)           Record
Date.  If the Company takes a record
of the holders of Common Securities for the purpose of entitling them (A) to
receive a dividend or other distribution payable in Common Securities, Options
or in Convertible Securities or (B) to subscribe for or purchase Common
Securities, Options or Convertible Securities, then such record date will be
deemed to be the date of the issue or sale of the Common Securities deemed to
have been issued or sold upon the declaration of such dividend or the making of
such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

 

(b)           Adjustment
upon Subdivision or Combination of Common Securities.  If the Company at any time on or after the
Subscription Date subdivides (by any security split, security dividend,
recapitalization or otherwise) one or more classes of its outstanding Common
Securities into a greater number of Common Securities, the Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Securities will be proportionately increased.  If the Company at any time on or after the
Subscription Date combines (by combination, reverse security split or
otherwise) one or more classes of its outstanding Common Securities into a
smaller number of Common Securities, the Exercise Price in effect immediately
prior to such combination will be proportionately increased and the number of
Warrant Securities will be proportionately decreased.  Any adjustment under this Section 2(b) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

 

(c)           Other
Events.  If any event occurs of the
type contemplated by the provisions of this Section 2 but not expressly
provided for by such provisions (including, without limitation, the granting of
stock appreciation rights, phantom stock rights or other rights with equity
features), then the Company’s Board of Directors will make an appropriate
adjustment in the Exercise Price and the number of Warrant Securities so as to
protect the rights of the Holder; provided that no such adjustment pursuant to
this Section 2(c) will increase the Exercise Price or decrease the
number of Warrant Securities as otherwise determined pursuant to this Section 2.

 

3.             RIGHTS
UPON DISTRIBUTION OF ASSETS.  If the
Company shall declare or make any dividend or other distribution of its assets
(or rights to acquire its assets) to holders of Common Securities, by way of
return of capital or otherwise (including, without limitation, any distribution
of cash, stock or other securities, property or options by way of a dividend,
spin off, reclassification, corporate rearrangement, scheme of arrangement or
other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case:

 

(a)           any
Exercise Price in effect immediately prior to the close of business on the
record date fixed for the determination of holders of Common Securities
entitled to receive the Distribution shall be reduced, effective as of the
close of business on such record date, to a price determined by multiplying
such Exercise Price by a fraction of which (i) the 

 

 

 

 

 

6

 

numerator shall be the Closing Bid Price of the Common Securities on
the Trading Day immediately preceding such record date minus the value of the
Distribution (as determined in good faith by the Company’s Board of Directors)
applicable to one share of Common Securities, and (ii) the denominator
shall be the Closing Bid Price of the Common Securities on the Trading Day
immediately preceding such record date; and

 

(b)           the
number of Warrant Securities shall be increased to a number of shares equal to
the number of Common Securities obtainable immediately prior to the close of
business on the record date fixed for the determination of holders of Common
Securities entitled to receive the Distribution multiplied by the reciprocal of
the fraction set forth in the immediately preceding paragraph (a); provided
that in the event that the Distribution is of Common Securities (or common
stock) (“Other Shares of Common Stock”)
of a company whose common shares are traded on a national securities exchange
or a national automated quotation system, then the Holder may elect to receive
a warrant to purchase Other Shares of Common Stock in lieu of an increase in
the number of Warrant Securities, the terms of which shall be identical to
those of this Warrant, except that such warrant shall be exercisable into the
number of shares of Other Shares of Common Stock that would have been payable
to the Holder pursuant to the Distribution had the Holder exercised this Warrant
immediately prior to such record date and with an aggregate exercise price
equal to the product of the amount by which the exercise price of this Warrant
was decreased with respect to the Distribution pursuant to the terms of the
immediately preceding paragraph (a) and the number of Warrant Securities
calculated in accordance with the first part of this paragraph (b).

 

4.             PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)           Purchase
Rights.  In addition to any
adjustments pursuant to Section 2 above, if at any time the Company
grants, issues or sells any Options, Convertible Securities or rights to
purchase stock, warrants, securities or other property pro rata to the record
holders of any class of Common Securities (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which the Holder could have acquired if the Holder had held the
number of Common Securities acquirable upon complete exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) immediately
before the date on which a record is taken for the grant, issuance or sale of
such Purchase Rights, or, if no such record is taken, the date as of which the
record holders of Common Securities are to be determined for the grant, issue
or sale of such Purchase Rights.

 

(b)           Fundamental
Transactions.  The Company shall not enter into or be party to a Fundamental
Transaction unless the Successor Entity assumes in writing all of the obligations
of the Company under this Warrant and the other Transaction Documents in
accordance with the provisions of this Section (4)(b), including
agreements to deliver to each holder of Warrants
in exchange for such Warrants a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted
exercise price equal to the value for the Common Securities reflected by the
terms of such Fundamental Transaction, and exercisable for a corresponding
number of shares of capital stock equivalent to the Common Securities
acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) 

 

 

 

 

7

 

prior to such Fundamental Transaction. 
Upon the occurrence of any
Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant referring to the “Company” shall
refer instead to the Successor Entity), and may exercise every right and power
of the Company and shall assume all of the obligations of the Company under
this Warrant with the same effect as if such Successor Entity had been named as
the Company herein.  Upon
consummation of the Fundamental Transaction, the Successor Entity shall deliver
to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation
of the Fundamental Transaction, in lieu of the shares of the Common
Securities (or other securities, cash,
assets or other property) purchasable upon the
exercise of the Warrant prior to such Fundamental Transaction, such shares of the publicly traded Common Securities (or its equivalent)
of the Successor Entity (including its Parent Entity) which the Holder would
have been entitled to receive upon the happening of such Fundamental
Transaction had this Warrant been converted immediately prior to such Fundamental Transaction, as
adjusted in accordance with the provisions of this Warrant.  In addition to and not in
substitution for any other rights hereunder, prior to the consummation of any
Fundamental Transaction pursuant to which holders of Common Securities are
entitled to receive securities or other assets with respect to or in exchange
for Common Securities (a “Corporate Event”),
the Company shall make appropriate provision to insure that the Holder will
thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the Fundamental
Transaction but prior to the Expiration Date, in lieu of the Common Securities (or other securities, cash,
assets or other property) purchasable upon the
exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or
any other property whatsoever (including warrants or other purchase or
subscription rights) which the Holder would have been entitled to receive upon
the happening of such Fundamental Transaction had the Warrant been exercised
immediately prior to such Fundamental Transaction.  The provisions of this Section shall
apply similarly and equally to successive Fundamental Transactions and
Corporate Events and shall be applied without regard to any limitations on the
exercise of this Warrant.

 

5.             Intentionally Omitted.

 

6.             NONCIRCUMVENTION. 
The Company hereby covenants and agrees that the Company will not, by
amendment of its articles of incorporation, bylaws or other organization
documents or through any reorganization, transfer of assets, consolidation,
merger, scheme of arrangement, 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, and will at all times in good faith carry out
all the provisions of this Warrant and take all action as may be required to
protect the rights of the Holder. 
Without limiting the generality of the foregoing, the Company (i) shall
not increase the par value of any Warrant Securities receivable upon the
exercise of this Warrant above the Exercise Price then in effect and (ii) shall
take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Securities upon the exercise of this Warrant.

 

7.             WARRANT HOLDER NOT DEEMED A
SECURITY HOLDER.  Except as otherwise
specifically provided herein, the Holder, solely in such Person’s capacity as a
holder of this Warrant, shall not be entitled to vote or receive dividends or
be deemed the holder of Common Securities of the Company for any purpose, nor
shall anything contained in this 

 

 

 

 

 

 

8

 

Warrant be construed to
confer upon the Holder, solely in such Person’s capacity as the Holder of this
Warrant, any of the rights of a security holder of the Company or any right to
vote, give or withhold consent to any corporate action (whether any
reorganization, issue of Common Securities, reclassification of Common
Securities, consolidation, merger, conveyance or otherwise), receive notice of
meetings, receive dividends or subscription rights, or otherwise, prior to the
issuance to the Holder of the Warrant Securities which such Person is then
entitled to receive upon the due exercise of this Warrant.  In addition, nothing contained in this
Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a
security holder of the Company, whether such liabilities are asserted by the
Company or by creditors of the Company. 
Notwithstanding this Section 7, the Company shall provide the
Holder with copies of the same notices and other information given to the
security holders of the Company generally, contemporaneously with the giving
thereof to the security holders.

 

8.             REISSUANCE
OF WARRANTS.

 

(a)           Transfer
of Warrant.  If this Warrant is to be
transferred, the Holder shall surrender this Warrant to the Company, whereupon
the Company will forthwith issue and deliver upon the order of the Holder a new
Warrant (in accordance with Section 8(d)), registered as the Holder may
request, representing the right to purchase the number of Warrant Securities
being transferred by the Holder and, if less then the total number of Warrant
Securities then underlying this Warrant is being transferred, a new Warrant (in
accordance with Section 8(d)) to the Holder representing the right to
purchase the number of Warrant Securities not being transferred.

 

(b)           Lost,
Stolen or Mutilated Warrant.  Upon
receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Warrant, and, in the case of
loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary form and, in the case of mutilation, upon surrender
and cancellation of this Warrant, the Company shall execute and deliver to the
Holder a new Warrant (in accordance with Section 8(d)) representing the
right to purchase the Warrant Securities then underlying this Warrant.

 

(c)           Warrant
Exchangeable for Multiple Warrants. 
This Warrant is exchangeable, upon the surrender hereof by the Holder at
the principal office of the Company, for a new Warrant or Warrants (in
accordance with Section 8(d)) representing in the aggregate the right to
purchase the number of Warrant Securities then underlying this Warrant, and
each such new Warrant will represent the right to purchase such portion of such
Warrant Securities as is designated by the Holder at the time of such
surrender; provided, however, that no Warrants for fractional Warrant
Securities shall be given.

 

(d)           Issuance
of New Warrant.  Whenever the Company
is required to issue a new Warrant pursuant to the terms of this Warrant, such
new Warrant (i) shall be of like tenor with this Warrant, (ii) shall
represent, as indicated on the face of such new Warrant, the right to purchase
the Warrant Securities then underlying this Warrant (or in the case of a new
Warrant being issued pursuant to Section 8(a) or Section 8(c),
the Warrant Securities designated by the Holder which, when added to the number
of Securities underlying the other new Warrants issued 

 

 

 

 

 

9

 

in connection with such issuance, does not exceed the number of Warrant
Securities then underlying this Warrant), (iii) shall have an issuance
date, as indicated on the face of such new Warrant which is the same as the
Issuance Date, and (iv) shall have the same rights and conditions as this
Warrant.

 

9.             NOTICES.  Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Warrant must be in writing and will be deemed to have been delivered:  (a) upon receipt, when delivered
personally; (b) upon transmission, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (c) one Business Day after deposit
with an overnight courier service, in each case properly addressed to the party
to receive the same.  The addresses and
facsimile numbers for such communications shall be:

 

If
to the Company:

 

American
Defense Systems, Inc.

230 Duffy Avenue, Unit C

Hicksville, NY 11801

Facsimile:              (516) 390-5308

Attention:             Chief Financial Officer

 

With a copy (for
informational purposes only) to:

 

Greenberg
Traurig, LLP

1750
Tysons Boulevard

Suite 1200

McLean,
Virginia 22102

Facsimile:              (703) 749-1301

Attention:             Jeffrey R. Houle

 

If
to the Holder:

 

[INSERT]

Facsimile:               

Attention:

 

or to such other address
and/or facsimile number and/or to the attention of such other Person as the
recipient party has specified by written notice given to each other party five (5) days
prior to the effectiveness of such change.

 

10.           AMENDMENT AND WAIVER.  Except as otherwise provided herein, the
provisions of this Warrant may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed
by it, only if the Company has obtained the written consent of the Person who
was the Holder as of the Issuance Date.

 

11.           GOVERNING LAW.  This Warrant shall be governed by and
construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by,
the internal laws of the

 

10

 

State of Delaware, without
giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Delaware or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of Delaware.

 

12.           CONSTRUCTION; HEADINGS.  This Warrant shall be deemed to be jointly
drafted by the Company and the Holder and shall not be construed against any
Person as the drafter hereof.  The
headings of this Warrant are for convenience of reference and shall not form
part of, or affect the interpretation of, this Warrant.

 

13.           DISPUTE RESOLUTION. 
In the case of a dispute as to the determination of the Exercise Price
or the arithmetic calculation of the Warrant Securities, the Company shall
submit the disputed determinations or arithmetic calculations via facsimile
within two (2) Business Days of receipt of the Exercise Notice giving rise
to such dispute, as the case may be, to the Holder.  If the Holder and the Company are unable to
agree upon such determination or calculation of the Exercise Price or the
Warrant Securities within three (3) Business Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the
Company shall, within two (2) Business Days submit via facsimile (a) the
disputed determination of the Exercise Price to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the
disputed arithmetic calculation of the Warrant Securities to the Company’s
independent, outside accountant.  The
Company shall cause at its expense the investment bank or the accountant, as
the case may be, to perform the determinations or calculations and notify the
Company and the Holder of the results no later than ten Business Days from the
time it receives the disputed determinations or calculations.  Such investment bank’s or accountant’s
determination or calculation, as the case may be, shall be binding upon all
parties absent demonstrable error.

 

14.           REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE
RELIEF.  The remedies provided in
this Warrant shall be cumulative and in addition to all other remedies
available under this Warrant and the other Transaction Documents, at law or in
equity (including a decree of specific performance and/or other injunctive
relief), and nothing herein shall limit the right of the Holder right to pursue
actual damages for any failure by the Company to comply with the terms of this
Warrant.  The Company acknowledges that a
breach by it of its obligations hereunder will cause irreparable harm to the
Holder and that the remedy at law for any such breach may be inadequate.  The Company therefore agrees that, in the
event of any such breach or threatened breach, the holder of this Warrant shall
be entitled, in addition to all other available remedies, to an injunction
restraining any breach, without the necessity of showing economic loss and
without any bond or other security being required.

 

15.           TRANSFER.          This
Warrant and the Warrant Securities may not be offered for sale, sold,
transferred, pledged or assigned without the consent of the Company.

 

16.           SEVERABILITY. If any provision of this Agreement is
prohibited by law or otherwise determined to be invalid or unenforceable by a
court of competent jurisdiction, the provision that would otherwise be
prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or
unenforceability of such provision shall not affect the validity of the
remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material 

 

 

 

 

11

 

change, the original intentions of the
parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially
impair the respective expectations or reciprocal obligations of the parties or
the practical realization of the benefits that would otherwise be conferred
upon the parties.  The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or
unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

17.           PIGGYBACK REGISTRATION RIGHTS.

 

(a)           If at any time the Company determines
to file a registration statement (including pursuant to the request of any
security holder of the Company which has the right to require the Company to
file such a registration statement) under the 1933 Act to register an offering
of shares of Common Stock, it must give to the Holder written notice of such
determination at least 20 days prior to each such filing.  If, within 10 days after delivery of any such
notice, the Holder so requests in writing, the Company must include in such
registration statement, subject to the remainder of this Section 17, all
of the Warrant Securities that such Holder requests to be so included.  All such Warrant Securities are sometimes
referred to herein as the “Registrable Securities.”

 

(b)           Any Registrable Securities of the
Holder that are to be included in an underwritten public offering pursuant to
this Section 17 shall be offered and sold upon such terms as the managing
underwriters thereof determine; provided, however,
that any such terms must be the same as the terms to which any other holder of
Registrable Securities will be bound and must not be substantially different
from the terms pursuant to which the Company and any other security holder
selling shares of Common Stock in such offering are selling such shares.  The managing underwriters may condition the
Holder’s participation in such an underwritten public offering upon such
Holder’s execution of an underwriting agreement containing customary terms and
conditions.  If the managing underwriters
for an underwritten public offering determine that the number of shares of
Common Stock proposed to be sold in such offering would adversely affect the
marketing of the shares of Common Stock to be sold by the Company therein or by
the person or persons who exercised their right to require the Company to
register such offering under the 1933 Act, then the number of shares of Common
Stock to be included in such offering shall be reduced in the following order
until the number of such shares does not exceed the number that the managing
underwriters believe can be sold without any such adverse effects:

 

(i)            The shares of Common Stock to be
included in such offering for the accounts of persons who do not have any
contractual registration rights shall be reduced pro rata among such persons
based upon the number of shares of Common Stock beneficially owned by them
until the number of shares to be included for such persons is equal to zero.

 

(ii)           The Registrable Securities to be
included in such offering for the accounts of persons whose contractual
registration rights are inferior to the registration rights of the Holder shall
be reduced pro rata among such persons based upon the number of Registrable
Securities beneficially owned by them until the number of Registrable
Securities to be included for such persons is equal to zero.

 

 

 

 

 

 

12

 

(iii) 
The Registrable Securities to be included in such offering for the accounts of
the Holder and other persons who have equivalent contractual registration
rights shall be reduced pro rata among such persons based upon the number of
Registrable Securities beneficially owned by them until the number of
Registrable Securities to be included for such persons is equal to zero.  The reduction of Registrable Securities to
zero as set forth in the immediate preceding sentence must occur prior to any
reduction of Registrable Securities to be included in such offering for the
accounts of (a) the Company or (b) other persons who have superior
contractual registration rights as against the Holder.

 

If the Holder, after
electing to participate in an underwritten public offering determines that it
does not approve of the terms of any such offering prior to the effectiveness
of the related registration statement under the 1933 Act, then such Holder may
elect to withdraw therefrom by giving written notice of such withdrawal to the
Company and the managing underwriters prior to such effectiveness.

 

(c)           All registration rights granted under
this Section 17 shall terminate and be of no further force or effect from
and after the second anniversary of the effective date under the 1933 Act of
the registration statement for the Company’s first firm commitment underwritten
public offering of shares of Common Stock (the “Initial
Offering”).  A Holder shall
not be entitled to exercise its registration rights under this Section 17
at any time that (i) the Company is subject to and is in compliance with
the applicable reporting requirements under the Securities Exchange Act of
1934, as amended; and (ii) all Registrable Securities beneficially owned
by such Holder may be sold pursuant to Rule 144 under the 1933 Act.

 

(d)           Notwithstanding anything to the
contrary set forth herein, (i) the provisions of this Section 17
shall not apply to any registration statement that is being filed to register
the offering of (A) securities being offered in the Initial Offering, (B) securities
to be issued solely in connection with the acquisition of any entity or
business, (C) securities issuable solely pursuant to employee benefit
plans (including pursuant to the exercise of stock options), or (D) securities
the offering of which is being registered on a registration form that does not
permit the registration of the offering of securities for security holders; and
(ii) the Company may withdraw any registration statement referred to in
this Section 17 in accordance with the provisions of the 1933 Act without
thereby incurring any liability to the Holder.

 

18.           CERTAIN DEFINITIONS.  For purposes of this Warrant, the following
terms shall have the following meanings:

 

(a)           “Black Scholes Value” means the value of this Warrant based
on the Black and Scholes Option Pricing Model obtained from the “OV” function
on Bloomberg determined as of the day of closing of the applicable Fundamental
Transaction for pricing purposes and reflecting (i) a risk-free interest
rate corresponding to the U.S. Treasury rate for a period equal to the
remaining term of this Warrant as of such date of request, (ii) an
expected volatility equal to the lesser of 75% and the 100 day volatility
obtained from the HVT function on Bloomberg as of the day immediately following
the public announcement of the applicable Fundamental Transaction and (iii) the
underlying price per share used in such calculation shall be the sum of the
price per share being offered in cash, if any, plus the value of any non cash
consideration, if any, being offered in the Fundamental Transaction.

 

 

 

 

13

 

(b)           “Bloomberg”
means Bloomberg Financial Markets.

 

(c)           “Board of Directors”
means the board of directors of the Company.

 

(d)           “Business Day”
means any day other than Saturday, Sunday or other day on which commercial
banks in The City of New York are authorized or required by law to remain
closed.

 

(e)           “Certificate of
Designations” means the certificate of designations for the Series A
Convertible Preferred Stock filed by the Company with the Secretary of State of
the State of Delaware on or about the Issuance Date.

 

(f)            “Closing Bid Price”
and “Closing Sale Price” means,
for any security as of any date on or after the Public Company Date, the last
closing bid price and last closing trade price, respectively, for such security
on the Principal Market, as reported by Bloomberg, or, if the Principal Market
begins to operate on an extended hours basis and does not designate the closing
bid price or the closing trade price, as the case may be, then the last bid
price or last trade price, respectively, of such security prior to 4:00:00 p.m.,
New York Time, as reported by Bloomberg, or, if the Principal Market is not the
principal securities exchange or trading market for such security, the last
closing bid price or last trade price, respectively, of such security on the
principal securities exchange or trading market where such security is listed
or traded as reported by Bloomberg, or if the foregoing do not apply, the last
closing bid price or last trade price, respectively, of such security in the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg, or, if no closing bid price or last trade price,
respectively, is reported for such security by Bloomberg, the average of the
bid prices, or the ask prices, respectively, of any market makers for such
security as reported in the “pink sheets” by Pink Sheets LLC (formerly the
National Quotation Bureau, Inc.). 
If the Closing Bid Price or the Closing Sale Price cannot be calculated
for a security on a particular date on any of the foregoing bases either before
or after the Public Company Date, the Closing Bid Price or the Closing Sale
Price, as the case may be, of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder.  If the Company and the Holder are unable to
agree upon the fair market value of such security, then such dispute shall be
resolved pursuant to Section 13.  All such determinations to be appropriately
adjusted for any stock dividend, stock split, stock combination or other
similar transaction during the applicable calculation period.

 

(g)           “Common Securities”
means (x) prior to the Public Company Date, the shares of Common Stock or (y) after
the Public Company Date, the Public Company Stock.

 

(h)           “Common Securities Deemed Outstanding” means, at any
given time, the number of shares of Common Securities actually outstanding at
such time, plus the number of shares of Common Securities deemed to be
outstanding pursuant to Sections 2(a)(i) and 2(a)(ii) hereof
regardless of whether the Options or Convertible Securities are actually
exercisable at such time, but excluding any Common Securities owned or held by
or for the account of the Company or issuable upon exercise of the SPA
Warrants.

 

 

 

 

14

 

(i)            “Convertible Securities”
means any Common Securities or securities (other than Options) directly or
indirectly convertible into or exercisable or exchangeable for Common
Securities.

 

(j)            “Eligible Market” means The New York
Stock Exchange, Inc., the American Stock Exchange, The NASDAQ Global
Market, The NASDAQ Global Select Market or The NASDAQ Capital Market.

 

(k)           “Expiration Date”
means the date that is sixty (60) months after the Issuance Date or, if such
date falls on a day other than a Business Day or on which trading does not take
place on the Principal Market (a “Holiday”),
the next date that is not a Holiday.

 

(l)            “Fundamental
Transaction” means that the Company shall, directly or
indirectly, in one or more related transactions, (i) consolidate or merge
with or into (whether or not the Company is the surviving corporation) another
Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all
or substantially all of the properties or assets of the Company to another
Person, or (iii) allow another Person to make a purchase, tender or
exchange offer that is accepted by the holders of more than the 50% of the outstanding
Common Securities (not including any Common
Securities held by the Person or Persons making or party to, or associated or
affiliated with the Person or Persons making or party to, such purchase, tender
or exchange offer), or (iv) consummate a stock purchase agreement or other
business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another
Person whereby such other Person acquires more than the 50% of the
outstanding Common Securities (not including any Common
Securities held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to, such stock
purchase agreement or other business combination), or
(v) reorganize, recapitalize or reclassify its Common Securities, or (vi) any “person” or
“group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of 50% of the aggregate
ordinary voting power represented by issued and outstanding Common Securities.

 

(m)          “Options”
means any rights, warrants or options to subscribe for or purchase Common
Securities or Convertible Securities.

 

State of Delaware, without
giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Delaware or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of Delaware.

 

(n)           “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable
Person and whose common stock or equivalent equity security is quoted
or listed on an Eligible Market,
or, if there is more than one such Person or Parent Entity, the Person or
Parent Entity with the largest public market capitalization as of the date of
consummation of the Fundamental Transaction.

 

(o)           “Person” means an individual, a limited
liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, any other entity and a government or any
department or agency thereof.

 

(p)           “Principal Market” means the Eligible Market
that the Company’s Public Company Stock is traded immediately following the Public
Company Date.

 

 

 

15

 

(q)           “Public Company Date” means the date the shares of Common
Stock of the Company (or its successor by merger, recapitalization,
reorganization, or otherwise) is registered under the 1934 Act or the
Securities Act of 1933, as amended (the “1933 Act”) (a “Public Company Event”).

 

(r)            “Public Company Stock” means shares of the class of common
equity of the Company registered under the 1934 Act or the 1933 Act.

 

(s)           “Qualified  Public Offering”
means a public offering of the Common Stock at a price of at least $4.00 per
share (subject to adjustment for stock splits, stock dividends,
recapitalizations, reorganizations, reclassification, combinations, reverse
stock splits or other similar events) which generates gross proceeds to the
Company in excess of $25,000,000; provided, however, that such
public offering may not (i) include warrants with an exercise price of
less than $5.00 (subject to adjustment for stock splits, stock dividends, recapitalizations,
reorganizations, reclassification, combinations, reverse stock splits or other
similar events) and (ii) the number of warrants may not exceed fifty
percent (50%) of the shares of Common Stock being offered in such public
offering.

 

(t)            “Successor Entity” means the Person (or the Parent Entity) formed by, resulting from or
surviving any Fundamental Transaction or the Person (or the Parent Entity) with
which such Fundamental Transaction shall have been entered into.

 

(u)           “Trading Day” means (i) prior to the Public
Company Date, any Business Day or (ii) on or after the Public Company
Date, any day on which the Public Company Stock is traded on the Principal
Market, or, if the Principal Market is not the principal trading market for the
Public Company Stock, then on the principal securities exchange or securities
market on which the Public Company Stock is then traded; provided that “Trading
Day” shall not include any day on which the Public Company Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the
Public Company Stock are suspended from trading during the final hour of
trading on such exchange or market (or if such exchange or market does not
designate in advance the closing time of trading on such exchange or market,
then during the hour ending at 4:00:00 p.m., New York time).

 

(v)           “Weighted Average Price” means, for any
security as of any date, the dollar volume-weighted average price for such
security on the Principal Market during the period beginning at 9:30:01 a.m.,
New York City Time, and ending at 4:00:00 p.m., New York City Time, as
reported by Bloomberg through its “Volume at Price” function or, if the
foregoing does not apply, the dollar volume-weighted average price of such
security in the over-the-counter market on the electronic bulletin board for
such security during the period beginning at 9:30:01 a.m., New York City
Time, and ending at 4:00:00 p.m., New York City Time, as reported by
Bloomberg, or, if no dollar volume-weighted average price is reported for such
security by Bloomberg for such hours, the average of the highest closing bid
price and the lowest closing ask price of any of the market makers for such
security as reported in the “pink sheets” by Pink Sheets LLC (formerly
the National Quotation Bureau, Inc.).  If the Weighted Average Price cannot be
calculated for such security on such date on any of the foregoing bases, the
Weighted Average Price of such security on such date shall be the fair market
value as mutually determined by the Company and the Holder.  If the Company and the Holder are unable to
agree upon the fair market value of the Common Securities, then such dispute
shall be resolved pursuant to Section 13. All such determinations shall be
appropriately adjusted for any stock dividend, stock split or other similar
transaction during such period.

 

[Signature Page Follows]

 

 

 

16

 

                IN
WITNESS WHEREOF, the Company has caused this Warrants to Purchase
Common Securities to be duly executed as of the Issuance Date set out above.

 

	
   

  	
   

  	
  AMERICAN DEFENSE SYSTEMS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary Sidorsky

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

                EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER TO 

EXERCISE THIS WARRANT TO PURCHASE COMMON SECURITIES

 

AMERICAN DEFENSE SYSTEMS, INC.

 

                The undersigned holder hereby
exercises the right to purchase
                                  
of shares of Common Securities (“Warrant
Securities”) of American Defense Systems, Inc., a Delaware
corporation (the “Company”),
evidenced by the attached Warrant (the “Warrant”).  Capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

 

                1.  Form of Exercise
Price.  The Holder intends that payment
of the Exercise Price shall be made as:

 

                                                                                a “Cash
Exercise” with respect to
                     Warrant
Securities; and/or

 

                                                                                a “Cashless
Exercise” with respect to
              
Warrant Securities.

 

                2.  Payment of Exercise Price.  In the event that the holder has elected a
Cash Exercise with respect to some or all of the Warrant Securities to be
issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in
the sum of
$                                      
to the Company in accordance with the terms of the Warrant.

 

                3.  Delivery of Warrant Securities.  The Company shall deliver to the holder
                    
Warrant Securities in accordance with the terms of the Warrant.

 

	
  Date:
                                
      ,

  	
   

  
	
   

  	
   

  
	
  Name of Registered Holder

  	
   

  

 

	
  By:

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

 

 

ACKNOWLEDGMENT

 

                The Company hereby acknowledges
this Exercise Notice and, if after the Public Company Date, hereby directs the
Transfer Agent to issue the
above indicated number of Warrant Securities.

 

AMERICAN
DEFENSE SYSTEMS, INC.

 

	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:EXHIBIT 4.5

 

Restricted (See Reverse)

Number                                                                                                                                                                                  Shares

 

INCORPORATED UNDER THE LAWS OF THE STATE OF
DELAWARE

 

American Defense Systems, Inc.

 

Series A Convertible Preferred Stock

 

Total Authorized Issue

15,000 shares $.001 Par Value

 

 

 

This is to Certify that
                                                                             
is the owner of                                                                                                       fully
paid and non-assessable shares of the above Corporation transferable only on
the books of the Corporation by the holder hereof in person or by duly
authorized Attorney upon surrender of this Certificate properly endorsed.

 

Witness, the seal of the Corporation and the signatures of its duly
authorized officers.

 

	
  Dated

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  	
  Chief Executive Officer

  

 

 

 

 

                The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed as though they
were written out in full according to applicable laws or regulations:

 

	
  TEN COM

  	
   

  	
  — as tenants in common

  
	
  TEN ENT

  	
   

  	
  — as tenants by the
  entireties

  
	
  JT TEN

  	
   

  	
  — as joint tenants with
  right of survivorship and not as tenants in common

  
	
  UNIF TRANSFERS MIN ACT

  	
   

  	
  —
                             Custodian

  
	
   

  	
   

  	
           (Cust)                                       (Minor)

  
	
   

  	
   

  	
          under
  Uniform Transfers to Minor Act
                               

  
	
   

  	
   

  	
                                                                               (State)

  
	
   

  	
   

  	
  Additional Abbreviations
  may also be used though not in the above list

  

 

For value received,
                                                           
hereby sell, assign and transfer unto

 

	
  PLEASE INSERT SOCIAL
  SECURITY OR OTHER

  	
   

  
	
  IDENTIFYING NUMBER OF
  ASSIGNEE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (PLEASE PRINT OR TYPEWRITE
  NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
  Shares represented by the
  within Certificate, and do hereby irrevocably constitute and appoint

  
	
   

  	
   

  
	
   

  
	
  Attorney to transfer the
  said Shares on the books of the within named Corporation with full power of
  substitution in the premises.

  

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
     In
  presence of

  	
   

  

 

NOTICE: THE SIGNATURE TO
THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.

 

NEITHER THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH
THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (1) IN THE ABSENCE OF
(A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT AND APPLICABLE STATE
SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER
SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

 

ANY TRANSFEREE OF THIS
CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE COMPANY’S CERTIFICATE OF
DESIGNATIONS RELATING TO THE PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE,
INCLUDING SECTION 2(d)(vii) THEREOF. THE NUMBER OF PREFERRED SHARES REPRESENTED
BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF PREFERRED SHARES STATED ON
THE FACE HEREOF PURSUANT TO SECTION 2(d)(vii) OF THE CERTIFICATE OF DESIGNATIONS
RELATING TO THE PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE.

 

THE CORPORATION IS
AUTHORIZED TO ISSUE MORE THAN ONE CLASS OR SERIES OF STOCK. THE CORPORATION
WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWER,
DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER
SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE QUALIFICATIONS,
LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS. ANY SUCH REQUEST
SHOULD BE ADDRESSED TO THE SECRETARY OF THE CORPORATION.

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