Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.3    
    

Warrant
to Purchase

Shares of Common Stock 

PAW        

Issue Date:                        , 2004

NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND NEITHER THIS
WARRANT NOR SUCH SHARES MAY BE SOLD, ENCUMBERED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENT, AND,
IF AN EXEMPTION SHALL BE APPLICABLE, THE HOLDER SHALL HAVE DELIVERED AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

Void after 5:00 P.M. New York City time on the last day of the Exercise Period, as defined in the Warrant.

COMMON STOCK PURCHASE WARRANT

OF

PHOTONIC PRODUCTS GROUP, INC.  

        This is to certify that, FOR VALUE RECEIVED,
                        with an address
at                        (and or its assign(s) and/or transferee(s)) (hereinafter, each a
"Holder" and collectively the "Holders"), is entitled to purchase, subject to the provisions of this Warrant, from Photonic Products Group, Inc., a New Jersey corporation (the "Company"), at an
exercise price per share of One Dollar and Thirty-Five Cents ($1.35),            (            ) fully paid and non-assessable
shares of Common Stock. The shares of
Common Stock deliverable upon such exercise, and as adjusted from time-to-time as provided in this Warrant, are hereinafter sometimes referred to as "Warrant Stock," and the
exercise price for the purchase of a share of Common Stock pursuant to this Warrant in effect at any time and as adjusted from time-to-time is hereinafter sometimes referred to
as the "Exercise Price." The aggregate purchase price payable for the Warrant Stock purchasable hereunder is referred to as the "Aggregate Purchase Price." The Aggregate Purchase Price is not subject
to adjustment. In the event of an adjustment to the Exercise Price, as provided in Section 6 herein, the number of shares of Warrant Stock deliverable upon exercise of this Warrant shall be
adjusted by dividing the Aggregate Purchase Price by the Exercise Price in effect immediately after such adjustment. 

        This
warrant and additional warrants of like tenor, including warrants issued in exchange and/or substitution thereof (collectively, the "Warrants") were originally issued to Casimir
Capital L.P. (the "Placement Agent" or "Casimir") and its designees in connection with Casimir acting as placement agent with respect to a private offering of securities by the Company (the
"Offering"), pursuant to the terms of a Confidential Private Placement Memorandum dated June 1, 2004, as may be supplemented from time to time (the "Memorandum") and as further provided in a
Placement Agent Agreement between the Company and Casimir dated May 28, 2004. 

        1.    DEFINITIONS.    The following terms have the meanings set forth below: 

        "Current
Market Value" of a share of Warrant Stock as of a particular date (the "Determination Date") shall mean: 

        a.     If
the Common Stock is listed on a national securities exchange or admitted to unlisted trading privileges on such exchange or listed for trading on the Nasdaq National
Market, the current market value shall be the last reported sale price of the Common Stock on such exchange or market on the last business day prior to the date of exercise of this 

 

Warrant
or, if no such sale is made on such day, the average closing bid and asked prices for such day on such exchange or market; or 

        b.     If
the Common Stock is not so listed or admitted to unlisted trading privileges, but is traded on the Nasdaq SmallCap Market or elsewhere quoted, the current market value
shall be the average of the closing price of the Common Stock for the five (5) trading days prior to such day on such market and if the Common Stock is not so traded, the current market value
shall be the mean of the last reported bid and asked prices reported by the National Quotation Bureau, Inc. on the last business day prior to the date of the exercise of this Warrant; or 

        c.     If
the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are not so reported, the current market value shall be an amount,
not less than book value thereof as at the end of the most recent fiscal year of the Company ending prior to the date of the exercise of the Warrant, determined in such reasonable manner as may be
prescribed by the Board of Directors of the Company. 

        "Convertible
Securities" shall mean evidences of indebtedness, shares of stock or other securities, including but not limited to options, warrants or purchase, subscription or other
rights, which are convertible into, exchangeable or exercisable for, or represent the right to receive, with or without payment of additional consideration in cash or property, shares of Common Stock
(or other Convertible Securities), either immediately or upon the occurrence of a specified date or a specified event. 

        "Permitted
Issuances" shall mean (i) Common Stock issuable or issued to employees, consultants or directors of the Company pursuant to the Company's 2000 Equity Compensation Plan
(the "2000 Plan") and 1991 Inrad, Inc. Key Employee Compensation Program (the "1999 Plan," and together with the 2000 Plan, the "Existing Plans"), which in no event shall exceed 4,314,500
shares in the aggregate, provided, however, that, the Company may choose to either (A) increase the Existing Plans by up to 1,000,000 shares in
the aggregate or (B) adopt one or more plans providing for the issuance of Common Stock to employees, consultants or directors of the Company covering up to 1,000,000 shares in the aggregate,
but shall not in any event issue any securities thereunder until (1) the authorized capital stock of the Company is increased by a minimum of 10,000,000 shares of Common Stock and
(2) the Registration Statement required by Section 5.1 of the Subscription Agreement(s) has been declared effective by the Securities and Exchange Commission, (ii) Common Stock
issued or issuable upon conversion of the Warrants or any other securities exercisable or exchangeable for, or convertible into, shares of Common Stock outstanding as of the commencement of the
Offering (the "Commencement Date"), and (iii) Common Stock or Convertible Securities issued or issuable as consideration by the Company solely for the acquisition of lines of business, business
assets and capital assets. Notwithstanding the foregoing, during the six-month period commencing on the date of the final closing of the Offering, any issuances of Common Stock or
Convertible Securities pursuant to clause (iii) above in excess of 500,000 shares of Common Stock in the aggregate (including shares underlying Convertible Securities) shall not fall within the
definition of Permitted Issuances and shall be subject to the provisions of Section 6 herein. 

        2.    EXERCISE OF WARRANT.    (a) This Warrant may be exercised in whole or in part at
any time, or from time to time, commencing on the date hereof and ending at 5 P.M. New York City time on the day preceding the fifth (5th) anniversary of the date of issuance of
this Warrant (the "Exercise Period"); provided, however, that if either such day is a day on which banking institutions in the State of New York are
authorized by law to close, then on the next succeeding day which shall not be such a day. This Warrant may be exercised by presentation and surrender hereof to the Company at its principal office, or
at the office of its stock transfer agent, if any, with the Warrant Exercise Form 

2

 

annexed
hereto duly executed and accompanied by payment of the Exercise Price for the number of shares of Warrant Stock specified in such form. As soon as practicable after each such exercise of this
Warrant, but not later than seven (7) days from the date of such exercise, the Company shall issue and deliver to the Holder a certificate or certificates for the shares of Warrant Stock
issuable upon such exercise, registered in the name of the Holder or its designee. If this Warrant should be exercised in part only, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the rights of the Holder thereof to purchase the balance of the shares of Warrant Stock purchasable thereunder. Upon receipt by the Company of this Warrant
at its office, or by the stock transfer agent of the Company at its office, in proper form for exercise, the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable
upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such shares of Common Stock shall not then be physically
delivered to the Holder. 

        (b)   In
lieu of the payment method set forth in Section 2(a) above, at any time during the Exercise Period, the Holder may, at its option, exchange this Warrant, in
whole or in part (a "Warrant Exchange"), without payment by the Holder of any additional consideration, into the number of shares of Warrant Stock determined in accordance with this
Section 2(b), by surrendering this Warrant at the principal office of the Company or at the office of its stock transfer agent, if any, accompanied by a notice stating such Holder's intent to
effect such exchange, the number of shares of Warrant Stock so be exchanged and the date on which the Holder requests that such Warrant Exchange occur (the "Notice of Exchange"). The Warrant Exchange
shall take place on the date specified in the Notice of Exchange or, if later, the date the Notice of Exchange is received by the Company (the "Exchange Date"). Certificates for the shares issuable
upon such Warrant Exchange and, if applicable, a new warrant of like tenor evidencing the balance of the shares remaining subject to this Warrant, shall be issued as of the Exchange Date and delivered
to the Holder within seven (7) days following the Exchange Date. In connection with any Warrant Exchange, this Warrant shall represent the right to subscribe for and acquire the number of
shares of Warrant Stock (rounded to the next highest integer) equal to (i) the number of shares of Warrant Stock specified by the Holders in its Notice of Exchange (the "Total Number"), less
(ii) the number of shares of Warrant Stock equal to the quotient obtained by dividing (A) the product of the Total Number and the existing Exercise Price by (B) the Current Market
Value of a share of Common Stock. Current Market Value shall have the meaning set forth in Section 1 above, except that for the purposes hereof, the date of exercise, as used in such
Section 1, shall mean the Exchange Date. 

        3.    RESERVATION OF SHARES/FRACTIONAL SHARES.    The Company hereby agrees that at all times
there shall be reserved for issuance and/or delivery upon exercise of this Warrant such number of
shares of Common Stock as shall be required for issuance and delivery upon exercise of this Warrant. If the Company hereafter lists its Common Stock on any national securities exchange, the Nasdaq
National Market or the Nasdaq SmallCap Market, it shall use its best efforts to keep the Warrant Stock authorized for listing on such exchange upon notice of issuance. No fractional shares or script
representing fractional shares shall be issued upon the exercise of this Warrant. With respect to any fraction of a share called for upon exercise hereof, the Company shall pay to the Holder an amount
in cash equal to such fraction multiplied by the Current Market Value of a share of Warrant Stock. 

        4.    EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT.    This Warrant (and all rights
hereunder) is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other Warrants
of different denominations entitling the holder or any assignee and/or transferee thereof to purchase in the aggregate the same number of shares of Common Stock purchasable hereunder;  provided, however,
that any assignment or transfer of the Warrant must comply with Section 11 below. Upon surrender of this Warrant to the
Company or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, 

3

 

without
charge, execute and deliver a new Warrant in the name of the assignee and/or transferee named in such instrument of assignment and this Warrant shall promptly be canceled;  provided, however, that any
assignment or transfer of the Warrant must comply with Section 11 below. This Warrant may be divided or combined with
other Warrants which carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying the
names and denominations in which new Warrants are to be issued and signed by the Holder hereof. The term "Warrant" as used herein includes any Warrants into which this Warrant may be divided or
exchanged. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and deliver a new Warrant of like tenor. Any such new Warrant executed and
delivered shall constitute a substitute contractual obligation on the part of the Company. 

        5.    RIGHTS OF THE HOLDER.    The Holder shall not, by virtue of this Warrant, be entitled to
any rights of a stockholder in the Company, either at law or equity, and the rights of the Holder are limited to those expressed in the Warrant and are not enforceable against the Company except to
the extent set forth herein. In addition, no provision hereof, in the absence of affirmative action by Holder to purchase shares of Common Stock, and no enumeration herein of the rights or privileges
of Holder hereof, shall give rise to any liability of such Holder for the purchase price of any Common Stock or as a stockholder of Company, whether such liability is asserted by Company or by
creditors of Company. 

        6.    ANTI-DILUTION PROVISIONS.    The Exercise Price in effect at any time and
the number and kind of securities purchasable upon exercise of each Warrant shall be subject to adjustment as follows: 

        (a)    Stock Dividends, Subdivisions and Combinations.    If, at any time or from time to time after the date of this
Warrant, the Company shall (i) pay a dividend or make a distribution to any holder of its capital stock in shares of Common Stock, (ii) subdivide its outstanding shares of Common Stock
into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares, or (iv) issue by reclassification of its Common Stock any shares of
capital stock of the Company, the Exercise Price shall be adjusted to be equal to a fraction, the numerator of which shall be the Aggregate Purchase Price and the denominator of which shall be the
number of shares of Common Stock or other capital stock of the Company that the Holder would have owned immediately following such action had such Warrant been exercised immediately prior thereto. An
adjustment made pursuant to this Subsection (a) shall become effective immediately after the record date in the case of a dividend or distribution, and shall become effective immediately after
the effective date in the case of a subdivision, combination or reclassification, and shall result in a corresponding adjustment to the number of shares of Warrant Stock issuable upon exercise of this
Warrant. 

        (b)    Certain Other Distributions and Adjustments.    If, at any time or from time to time after the date of this
Warrant, the Company shall issue or distribute to any holder of shares of Common Stock evidence of its indebtedness, any other securities of the Company or any cash, property or other assets
(excluding a subdivision, combination or reclassification, or dividend or distribution payable in shares of Common Stock referred to in Subsection (a), and also excluding cash dividends or cash
distributions paid out of net profits legally available therefor in the full amount thereof (any such non-excluded event being herein called a "Special Dividend")), the Exercise Price
shall be adjusted by multiplying the Exercise Price then in effect by a fraction, the numerator of which shall be the then Current Market Value in effect on the record date of such issuance or
distribution less the fair market value (as determined pursuant to paragraph (g)(B) of this Section 6) of the evidence of indebtedness, cash, securities or property, or other assets
issued or distributed in such Special Dividend applicable to one share of Common Stock and the denominator of which shall be the then Current Market Value in effect on the record date of such 

4

 

issuance
or distribution. An adjustment made pursuant to this Subsection (b) shall become effective immediately after the record date of any such Special Dividend and shall result in a
corresponding adjustment to the number of shares of Warrant Stock issuable upon exercise of this Warrant. 

        (c)    Issuance of Additional Shares of Common Stock and Convertible Securities.    

          (i)  If
at any time the Company shall in any manner issue or sell any shares of Common Stock or Convertible Securities (whether directly or by assumption in a merger in
which the Company is the surviving corporation), in exchange for consideration in an amount per share of Common Stock (determined by dividing (i) the total amount, if any, received or
receivable by the Company as consideration at the time of issuance or sale of such securities plus the total consideration, if any, payable to the Company upon exercise, conversion or exchange
thereof, by (ii) the number of additional shares of Common Stock issued, sold or issuable upon the exercise, conversion or exchange of such securities) that is less than the Exercise Price
(excluding Permitted Issuances), then the Exercise Price shall be adjusted so that it shall equal the price determined by multiplying such Exercise Price by a
fraction, the numerator of which shall be the number of shares of Common Stock outstanding on the date of issuance or sale (calculated on a fully-diluted basis as if all securities exercisable,
convertible or exchangeable for Common Stock have been so exercised, converted or exchanged) plus the number of shares of Common Stock which the aggregate offering price would purchase based upon the
Exercise Price, and the denominator of which shall be the number of shares of Common Stock outstanding on the date of issuance or sale (calculated on a fully-diluted basis as if all securities
exercisable, convertible or exchangeable for Common Stock have been so exercised, converted or exchanged) plus the maximum number of additional shares of Common Stock issued, sold or issuable in
connection with such offering or transaction. 

         (ii)  The
provisions of paragraph (i) of this Section 6(c) shall not apply to any issuance of shares of Common Stock for which an adjustment is provided under
Section 6(a) or 6(b). No adjustment of the number of shares of Common Stock for which this Warrant shall be exercisable shall be made under paragraph (i) of this Section 6(c) upon
the issuance of any shares of Common Stock which are issued pursuant to the exercise of any warrants or other subscription or purchase rights or pursuant to the exercise of any conversion or exchange
rights in any Convertible Securities, if any such adjustment shall previously have been made upon the issuance of such warrants or other rights or upon the issuance of such Convertible Securities. 

        (d)    No Adjustment.    No adjustment in the Exercise Price shall be required unless such adjustment would require an
increase or decrease of at least one cent ($0.01) in such price; provided, however, that any adjustments which by reason of this Section 6(d) are
not required to be made shall be carried forward and taken into account in any subsequent adjustment; provided, further, however that adjustments shall
be required and made in accordance with the provisions of this Section 6 not later than such time as may be required in order to preserve the tax-free nature of a distribution to
the Holder of this Warrant or the Common Stock issuable upon the exercise hereof. All calculations under this Section 6(d) shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be. 

        (e)    Accountants.    The Company may retain a firm of independent public accountants of recognized standing selected
by the Board (who may be the regular accountants employed by the Company) to make any computation required by this Section 6. 

        (f)    Additional Adjustments.    In the event that at any time, as a result of an adjustment made pursuant to
Section 6(a), (b) or (c) of this Warrant, the Holder of any Warrant thereafter shall become entitled to receive any shares of the Company other than Common Stock, thereafter the
number of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions
with respect to the Common Stock contained in Sections 6(a) through (j), inclusive, of this Warrant. 

5

  

        (g)    Consideration.    For purposes of any computation respecting consideration received pursuant to this
Section 6, the following shall apply: 

        A.    in
the case of the issuance of shares of Common Stock for cash, the consideration shall be the amount of such cash, provided that in no case shall any deduction be made
for any commissions, discounts or other expenses incurred by the Company for any underwriting of the issue or otherwise in connection therewith; 

        B.    in
the case of the issuance of shares of Common Stock for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to be the
fair market value thereof as determined in good faith by the Board of Directors of the Company (irrespective of the accounting treatment thereof), whose determination shall be conclusive; and 

        C.    in
the case of the issuance of securities convertible, exchangeable or exercisable for shares of Common Stock, the aggregate consideration received therefor shall be
deemed to be the consideration received by the Company for the issuance of such securities plus the additional minimum consideration, if any, to be received by the Company upon the conversion or
exchange thereof (the consideration in each case to be determined in the same manner as provided in clauses (A) and (B) of this Subsection (g)). 

        (h)    Voluntary Adjustment by the Company.    The Company may at any time during the term of this Warrant reduce the
then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. 

        (i)    No Adjustment.    Notwithstanding the foregoing, no adjustment shall be effected due to, or as a result of, any
Permitted Issuances. 

        (j)    Enforcement of Intent and Principles.    If any event or condition occurs as to which other provisions of this
Section 6 are not strictly applicable or if strictly applicable would not fairly protect the exercise or purchase rights of this Warrant in accordance with the essential intent and principles
of such provisions, or which might materially and adversely affect the exercise or purchase rights of the Holder under any provisions of the Warrant, then the Company shall make an adjustment in the
application of such provisions, in accordance with such essential intent and principles, so as to protect such exercise and purchase rights as aforesaid, and any adjustment necessary with respect to
the Exercise Price and the
number of shares of Common Stock purchasable hereunder so as to preserve without dilution the rights of the Holders. 

        7.    REGISTRATION RIGHTS.    The Warrant Stock shall be entitled to the registration rights
set forth in Article V of the Subscription Agreements entered into between the Company and the several subscriber(s) as further described in Section 5 of the Placement Agent Agreement. 

        8.    OFFICER'S CERTIFICATE.    Whenever the Exercise Price(s) shall be adjusted as required
by the provisions of Section 6 of this Warrant, the Company shall forthwith file in the custody of its Secretary or an Assistant Secretary at its principal office and with its stock transfer
agent, if any, an officer's certificate showing the adjusted Exercise Price(s) and the adjusted number of shares of Common Stock issuable upon exercise of each Warrant, determined as herein provided,
setting forth in reasonable detail the facts requiring such adjustment, including a statement of the number of additional shares of Common Stock, if any, and such other facts as shall be necessary to
show the reason for and the manner of computing such adjustment. Each such officer's certificate shall immediately be forwarded by certified mail to Holder as provided in Section 13. 

        9.    NOTICES TO WARRANT HOLDERS.    So long as this Warrant shall be outstanding,
(a) if the Company shall pay any dividend or make any distribution upon Common Stock, or (b) if the Company shall offer to the holders of Common Stock for subscription or purchase by
them any share of any class 

6

 

or
any other rights, or (c) if any capital reorganization of the Company, reclassification of the capital stock of the Company, consolidation or merger of the Company with or into another
entity, tender offer transaction for the Company's Common Stock, sale, lease or transfer of all or substantially all of the property and assets of the Company, or voluntary or involuntary dissolution,
liquidation or winding up of the Company shall be effected, or (d) if the Company shall file a registration statement under the Securities Act of 1933, as amended (the "Act"), on any
form other than on Form S-4 or S-8 or any successor form, then in any such case, the Company shall cause to be mailed by certified mail to the Holder, at least ten
(10) days prior to the date specified in clauses (a), (b), (c) or (d) above, as the case may be, of this Section 9 a notice containing a brief description of the proposed
action and stating the date on which (i) a record is to be taken for the purpose of such dividend, distribution or rights, or (ii) such reclassification, reorganization, consolidation,
merger, tender offer transaction, conveyance, lease, dissolution, liquidation or winding up is to take place and the date, if any is to be fixed, as of which the holders of Common Stock or other
securities shall receive cash or other property deliverable upon such reclassification, reorganization, consolidation, merger, conveyance, dissolution, liquidation or winding up, or (iii) such
registration statement is to be filed with the Securities and Exchange Commission. 

        10.    RECLASSIFICATION, REORGANIZATION OR MERGER.    In case of any reclassification, capital
reorganization or other change of outstanding shares of Common Stock of the Company, or in case of any consolidation or merger of the Company with or into another corporation (other than a merger with
a subsidiary in which merger the Company is the continuing or surviving corporation and which does not result in any reclassification, capital reorganization or other change of outstanding shares of
Common Stock of the class issuable upon exercise of this Warrant) or in case of any sale, lease or conveyance of all or substantially all of the assets of the Company, or in the case of any statutory
exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Company), the Company shall, as a condition precedent to
such transaction, cause effective provisions to be made so that (a) the Holder shall have the right thereafter by exercising this Warrant, to purchase the kind and amount of shares of stock and
other securities and property receivable upon such reclassification, capital reorganization and other change, consolidation, merger, sale, conveyance or statutory exchange by a holder of the number of
shares of Common Stock which could have been purchased upon exercise of this Warrant immediately prior to such reclassification, change, consolidation, merger, sale, conveyance, or statutory exchange
and (b) the successor or acquiring entity shall expressly assume the due and punctual observance and performance of each covenant, agreement, obligation and condition of this Warrant to be
performed and observed by Company and all obligations and liabilities hereunder (including but not limited to the provisions of Section 6 regarding the increase in the number of shares of
Warrant Stock potentially issuable hereunder). Any such provision shall include provision for adjustments which shall be as nearly equivalent as possible to the adjustments provided for in this
Warrant. The foregoing provisions of this Section 10 shall similarly apply to successive reclassifications, capital reorganizations and changes of shares of Common Stock and to successive
consolidations, mergers, sales or conveyances. In the event that in connection with any such capital reorganization or reclassification, consolidation, merger, sale, conveyance or statutory exchange,
additional shares of Common Stock shall be issued in exchange, conversion, substitution or payment, in whole in part, for a security of the Company other than Common Stock, any such issue shall be
treated as an issuance of Common Stock covered by the provisions of Section 6 of this Warrant. Notice of any such event shall be mailed by certified mail to the Holders of the Warrants no less
than thirty (30) days prior to such event. A sale of all or substantially all of the Company's assets for a consideration consisting primarily of securities shall be deemed a consolidation or
merger for the foregoing purposes. 

7

 

        11.    TRANSFER TO COMPLY WITH THE SECURITIES ACT OF 1933.    This Warrant or the Warrant
Stock or any other security issued or issuable upon exercise of this Warrant may not be sold or otherwise disposed of except as follows: 

        (a)   to
a person who, in the opinion of counsel for the Company, or counsel for the Holder who is reasonably acceptable to the Company, is a person to whom this Warrant or
Warrant Stock may legally be transferred without registration and without the delivery of a current prospectus under the Act with respect thereto and then only against receipt of an agreement of such
person to comply with the provisions of this Section 11 with respect to any resale or other disposition of such securities which agreement shall be satisfactory in form and substance to the
Company and its counsel; or 

        (b)   to
any person upon delivery of a prospectus then meeting the requirements of the Act relating to such securities and the offering thereof for such sale or disposition. 

        12.    GOVERNING LAW; JURISDICTION.    The corporate laws of the State of New York shall
govern all issues concerning the relative rights of the Company and its stockholders. All issues concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed
by and construed in accordance with the internal laws of the State of New York without giving effect to the principles of conflicts of law thereof. The parties hereto agree that venue in any and all
actions and proceedings related to the subject matter of this Warrant shall be in the state and federal courts in and for New York, New York, which courts shall have exclusive jurisdiction for such
purpose, and the parties hereto irrevocably submit to the exclusive jurisdiction of such courts and irrevocably waive the defense of an inconvenient forum to the maintenance of any such action or
proceeding. Service of process may be made in any manner recognized by such courts. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the change, waiver, discharge or termination is sought. 

        13.    NOTICES.    Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile telephone number specified in this Section 13 prior to 6:30 p.m. (New York City time) on a Business Day, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Agreement later than 6:30 p.m. (New York City time) on such date,
(iii) the Business Day following the date of the mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be as follows: 

	If to the Company:	 	Photonic Products Group, Inc.

181 Legrand Avenue

Northvale, NJ 07647

Attention: Daniel Lehrfeld

Fax: (201) 767-9644
	

If to Casimir:	
 	

Casimir Capital L.P.

100 Broadway, 11th Floor

New York, NY 10005

Attention: Richard Sands

Fax: (212) 798-1300
	

If to any other Holder:	
 	

To the address set forth on the cover page hereof.

        14.    MODIFICATION OF WARRANT.    Other than as provided in Section 6(h), this Warrant
shall not be modified, supplemented or altered in any respect, nor any provision waived, except with the 

8

 

consent
in writing of the Holders representing not less than fifty percent (50%) of the Warrants then outstanding. 

        15.    PAYMENT OF TAXES.    The Company will pay all documentary stamp taxes attributable to
the issuance of shares of Common Stock underlying this Warrant upon exercise of this Warrant; provided, however, that the Company shall not be required
to pay any tax which may be payable in respect of any transfer involved in the registration of any certificate for shares of Common Stock underlying this Warrant in a name other than that of the
Holder. The Holder is responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving shares of Common Stock underlying this Warrant upon
exercise hereof. 

        16.    REMEDIES.    Holder, in addition to being entitled to exercise all rights granted by
law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 

        17.    SUCCESSORS AND ASSIGNS.    Subject to applicable securities laws, this Warrant and the
rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and assigns of Holder. The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder or holder of Warrant Shares. 

        18.    SEVERABILITY.    Wherever possible, each provision of this Warrant shall be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to
the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. 

        19.    HEADINGS.    The headings used in this Warrant are for the convenience of reference
only and shall not, for any purpose be deemed a part of this Warrant. 

        IN
WITNESS WHEREOF, this Warrant has been duly executed as of                        , 2004. 

	 	 	PHOTONIC PRODUCTS GROUP, INC.
	

 	
 	
By:	

 
	 	 	 	
 Daniel Lehrfeld
 President and CEO
	

ATTEST:	
 	

 	

 
	

    
 Secretary	
 	

 	

 
	

[CORPORATE SEAL]	
 	

 	

 

9

 
PHOTONIC PRODUCTS GROUP, INC.

WARRANT EXERCISE FORM  

To
Photonic Products Group, Inc.: 

        The
undersigned hereby irrevocably elects to exercise the right of purchase represented by the within warrant ("Warrant") for, and to purchase thereunder by the payment of the Exercise
Price and surrender of the Warrant, shares of Common Stock ("Warrant Stock") provided for therein, and requests that certificates for the Warrant Stock be issued as follows: 

	

    
 Name	
 	

 
	

    
 Address	
 	

 
	

    
 Federal Tax ID or Social Security Number	
 	

 

and
delivered by certified mail to the above address, or electronically (provide DWAC instructions:                        ), or
(please specify:                        ). 

and,
if the number of shares of Warrant Stock shall not be all the Warrant Stock purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Stock purchasable upon the
exercise of this Warrant be registered in the name of the undersigned Holder or the undersigned's Assignee as below indicated and delivered to the address stated below. 

	Dated:	 	 	 	 
	 	 	
	 	 

NOTE:
The signature must correspond with the name of the Holder as written on the first page of the Warrant in every particular, without alteration or enlargement or any change whatsoever, unless the
Warrant has been assigned. 

	

    
 Name (please print)	
 	

 
	

    
 Address	
 	

 
	

    
 Federal Tax ID or Social Security Number	
 	

 
	

Assignee:	
 	

 
	

    
	
 	

 
	

    
	
 	

 

10

 
ASSIGNMENT  

        FOR VALUE RECEIVED                        hereby sells, assigns
and transfers unto                        the foregoing Warrant and all rights evidenced thereby, and does
irrevocably constitute and appoint                        , attorney, to transfer said Warrant on the books
of                        .
 

	Dated:	 	 	 	Signature:	 	 
	 	 	
	 	 	 	

	

 	
 	

 	
 	

Address:	
 	

 
	 	 	 	 	 	 	

PARTIAL ASSIGNMENT  

        FOR VALUE RECEIVED                        hereby sells, assigns
and transfers unto                        the right to
purchase                        shares of Common Stock, par
value $.01 per share, of Photonic Products Group, Inc. covered by the foregoing Warrant, and a proportionate part of said Warrant and the rights evidenced thereby, and does irrevocably
constitute and appoint                        , attorney, to transfer such part of said Warrant on the books
of                        . 

	Dated:	 	 	 	Signature:	 	 
	 	 	
	 	 	 	

	

 	
 	

 	
 	

Address:	
 	

 
	 	 	 	 	 	 	

11

QuickLinks

Exhibit 4.3QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 4.4  

 
 

PROMISSORY NOTE    
    

	

Principal Amount: $1,700,000	
 	

June 30, 2003

        FOR
VALUE RECEIVED, INRAD, INC., a New Jersey corporation (hereinafter called "Issuer"), hereby promises to pay to the order of CLAREX, LTD. and its successors and assigns
(hereinafter called the "Holder"), at such address as the Holder may designate in writing to Issuer, the principal sum of ONE MILLION SEVEN HUNDRED THOUSAND DOLLARS ($1,700,000) plus all accrued
interest owing hereunder in lawful money of the United States of America on or before the Maturity Date (as defined below). For purposes of this Note, "Maturity Date" shall mean January 31,
2005. 

Interest.    Interest shall accrue on the unpaid principal amount of this Note at the rate of six and one-half percent (6.0%) per
annum and shall be due and payable on the Maturity Date. Interest shall be computed on the basis of a 360 day year for the actual number of days elapsed. 

Optional Prepayment; Order of Payments.    Issuer may prepay this Note at any time, in whole or in part, without premium or penalty; provided,
however, Issuer shall provide to the Holder written notice at least ten (10) business days prior to such prepayment. All payments made on account of this Note shall be applied first to the
payment of any costs of enforcement then due hereunder, second to the payment of accrued and unpaid interest then due hereunder, and the remainder, if any, shall be applied to the unpaid principal
balance of this Note. 

Event of Default Defined; Acceleration of Maturity.    If one or more of the following events ("Events of Default") shall have occurred: 

        a
default in the payment of all or any part of the principal or interest due under this Note as and when the same shall become due and payable, at maturity, by declaration as permitted
hereunder, upon acceleration or otherwise; 

        Issuer
shall merge or consolidate with or into any other person or entity, sell, transfer, lease or otherwise dispose of all or any substantial portion of its assets or adopt a plan of
liquidation or dissolution; provided, however, that Issuer shall have the right to merge with any other
entity without creating an Event of Default so long as Issuer shall be the surviving entity in any such merger; 

        Issuer
shall have applied for or consented to the appointment of a custodian, receiver, trustee or liquidator, or other court-appointed fiduciary of all or a substantial part of its
properties; or a custodian, receiver, trustee or liquidator or other court appointed fiduciary shall have been appointed with the consent of Issuer; or Issuer is generally not paying its debts as they
become due or is insolvent, or has made a general assignment for the benefits of its creditors; or Issuer files a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or
an arrangement with its creditors or seeking to take advantage of any insolvency law, or an answer admitting the material allegations of a petition in any bankruptcy, reorganization or 

insolvency
proceeding or has taken action for the purpose of effecting any of the foregoing; or if, within sixty (60) days after the commencement of any proceeding against Issuer seeking any
reorganization, rehabilitation, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the Federal bankruptcy code or similar order under future similar legislation,
the appointment of any trustee, receiver, custodian, liquidator, or other court-appointed fiduciary of Issuer or of all or any substantial part of its properties, such order or appointment shall not
have been vacated or stayed on appeal or if, within sixty (60) days after the expiration of any such stay, such order or appointment shall not have been vacated (all such events, collectively
"Insolvency Events"); 

Then
Holder, by notice in writing to Issuer (the "Acceleration Notice"), may declare the principal amount of this Note and all accrued but unpaid interest to be due and payable immediately, and upon
any such declaration the same shall become immediately due and payable; provided that if an Insolvency Event occurs, the principal amount of this Note and all accrued but unpaid interest shall become
and be immediately due and payable without any declaration or other act on the part of the Holder. 

        Security.    Payment of this Note is secured pursuant to the terms of a separate Security Agreement dated the date of this Note.

Miscellaneous.

        5.1    Binding Effect; Assignability.    This Note shall be binding upon Issuer, its successors and its assigns, and
shall inure to the benefit of Holder, its successors and its assigns. This Note is transferable or assignable by the Holder or any transferee of the Holder only to an Affiliate or a partner, or an
heir, administrator, executor or successor of the Holder. 

        5.2    Governing Law; Jurisdiction; Venue.    This Note has been executed in and shall be governed by the laws of the
State of New Jersey. Issuer irrevocably submits to the exclusive jurisdiction of the courts of the State of New Jersey which will be the exclusive jurisdiction for disputes arising under the Note and
the United States District Court for the District of New Jersey for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Note. 

        IN
WITNESS WHEREOF, Issuer has caused this Note to be signed in its name by its duly authorized officer and its corporate seal to be affixed hereto. 

	

 	
 	

INRAD, INC.
	

 	
 	

By:	

/s/  WILLIAM S. MIRAGLIA      

QuickLinks

PROMISSORY NOTE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]