SEC Contract Filing

Filing Date: 2022-02-23

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>exhibit10-3.htm
<DESCRIPTION>EXHIBIT 10.3
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 <title>Hammer Fiber Optic Holdings Corp.: Exhibit 10.3 - Filed by newsfilecorp.com</title>
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 <p style="text-align: justify;">NEITHER THIS SECURITY NOR THE SECURITIES AS TO WHICH THIS SECURITY MAY BE EXERCISED HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.</p>
 <p style="margin-bottom: 0pt; text-align: center;"><b>COMMON STOCK PURCHASE WARRANT </b></p>
 <p style="margin-bottom: 0pt; margin-top: 0pt; text-align: center;"><b>HAMMER FIBER OPTICS HOLDINGS CORP.</b></p>
 <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Warrant Shares: 150,000</p>
 <p style="margin-top: 0pt; text-align: justify;">Date of Issuance: February 11, 2022 ("<u>Issuance Date</u>")</p>
 <p style="text-align: justify; text-indent: 36pt;">This COMMON STOCK PURCHASE WARRANT (the "<u>Warrant</u>") certifies that, for value received (in connection with the issuance of the promissory note in the principal amount of $550,000.00 to the Holder (as defined below) of even date) (the "Note"), MAST HILL FUND, L.P., a Delaware limited partnership (including any permitted and registered assigns, the "<u>Holder</u>"), is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date of issuance hereof, to purchase from HAMMER FIBER OPTICS HOLDINGS CORP., a Nevada corporation (the "<u>Company</u>"), 150,000 shares of Common Stock (the "<u>Warrant Shares</u>") (whereby such number may be adjusted from time to time pursuant to the terms and conditions of this Warrant) at the Exercise Price per share then in effect. This Warrant is issued by the Company as of the date hereof in connection with that certain securities purchase agreement dated February 11, 2022, by and among the Company and the Holder (the "<u>Purchase Agreement</u>").&#160;</p>
 <p style="text-align: justify; text-indent: 36pt;">Capitalized terms used in this Warrant shall have the meanings set forth in the Purchase Agreement unless otherwise defined in the body of this Warrant or in Section 12 below.&#160; For purposes of this Warrant, the term "Exercise Price" shall mean $3.00, subject to adjustment as provided herein (including but not limited to cashless exercise), and the term "Exercise Period" shall mean the period commencing on the Issuance Date and ending on 5:00 p.m. eastern standard time on the five-year anniversary thereof.</p>
 <p style="text-indent: 36pt; text-align: justify;">1.<font style="width: 27.75pt; text-indent: 0pt; display: inline-block;">&#160;</font><u>EXERCISE OF WARRANT</u>.</p>
 <p style="text-align: justify; text-indent: 72pt;">(a)<font style="width: 23.89pt; text-indent: 0pt; display: inline-block;">&#160;</font><i>Mechanics of Exercise</i>. Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in whole or in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto as <u>Exhibit A</u> (the "<u>Exercise Notice</u>"), of the Holder's election to exercise this Warrant. The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. On or before the third Trading Day (the "<u>Warrant Share Delivery Date</u>") following the date on which the Holder sent the Exercise Notice to the Company or the Company's transfer agent, and upon receipt by the Company of payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which all or a portion of this Warrant is being exercised (the "<u>Aggregate Exercise Price</u>" and together with the Exercise Notice, the "<u>Exercise Delivery Documents</u>") in cash or by wire transfer of immediately available funds (or by cashless exercise, in which case there shall be no Aggregate Exercise Price provided), the Company shall (or direct its transfer agent to) issue and deliver by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise (or deliver such shares of Common Stock in electronic format if requested by the Holder). Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares. If this Warrant is submitted in conn