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Exhibit 10
NEITHER THIS WARRANT NOR ANY SHARES ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR UNDER ANY STATE
SECURITIES LAWS. NEITHER THIS WARRANT NOR ANY SUCH SHARES MAY BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND STATE SECURITIES LAWS OR THE AVAILABILITY OF AN
EXEMPTION FROM SUCH REGISTRATION.
WARRANT NO. 3 FOR THE PURCHASE OF 60,000 SHARES
LASERTECHNICS, INC.
COMMON STOCK PURCHASE WARRANT
THIS CERTIFIES THAT, for value received, ▇▇▇▇▇▇▇▇▇▇ Associates II
L.P. or its successors in interest, assigns or transferees (collectively, the
"Warrant Holder"), is entitled to purchase from Lasertechnics, Inc., a Delaware
corporation (the "Company"), 60,000 shares of the Company's Common Stock (as
defined in paragraph 9(a) hereof) (the "Warrant Shares") at the exercise price
of SEVENTY CENTS ($.70) per share ("Exercise Price"). The number of Warrant
Shares and the Exercise Price shall be adjusted and readjusted or changed from
time to time in accordance with paragraph 4 hereof.
This Warrant may be exercised at any time and from time to time on or
prior to the third anniversary of the date of issuance set forth on the
signature page of this Warrant.
1. Exercise of Warrant.
The rights represented by this Warrant may be exercised by the Warrant
Holder, in whole or in part, by (a) delivering to the Company a duly executed
notice of exercise in the form of Annex A hereto and (b) at the Warrant Holder's
option, either (i) delivering a check payable to (or wire transfer to the
account of) the Company in an amount equal to the product of (x) the Exercise
Price times (y) the number of Warrant Shares as to which this Warrant is being
exercised (such product, the "Total Exercise Price") or (ii) delivering to the
company a letter (the "Conversion Letter") requesting conversion or exchange of
a portion of any indebtedness owed by the Company to the Warrant Holder in an
amount equal to the Total Exercise Price or (iii) surrendering to the Company a
portion of this Warrant with a "Value" (as defined below) equal to the Total
Exercise Price. For the purpose of clause (b)(iii) above, "Value" shall mean the
product of (I) the amount by which the average closing price per share of the
Company's Common Stock over the ten trading days preceding the date of exercise,
as reported in The Wall Street Journal, exceeds the Exercise Price and (II) the
number of Warrant Shares as to which this Warrant is surrendered for the purpose
of effecting payment for Warrant Shares. This Warrant shall be deemed to have
been
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exercised immediately prior to the close of business on the date of delivery of
a duly executed notice of exercise, together with the amount (in cash or by
delivering the Conversion Letter or by surrender of a portion of this Warrant)
payable upon exercise of this Warrant and, as of such moment, (i) the rights of
the Warrant Holder, as such, with respect to the number of Warrant Shares as to
which this Warrant is being exercised (and, if applicable, surrendered as
payment of the Total Exercise Price) shall cease, and (ii) such Warrant Holder
shall be deemed to be the record holder of the shares of Common Stock issuable
upon such exercise. As soon as practicable after the exercise, in whole or in
part, of this Warrant, and in any event within 5 business days thereafter, the
Company at its expense (including the payment by it of any applicable issuance
or stamp taxes) will cause to be issued in the name of and delivered to the
Warrant Holder, or as the Warrant Holder (upon payment by the Warrant Holder of
any applicable transfer taxes) may direct, a certificate or certificates for the
number of fully paid and nonassessable shares of Common Stock to which the
Warrant Holder shall be entitled upon such exercise. In the event of partial
exercise of this Warrant and, if applicable, partial surrender of this Warrant
pursuant to clause (b)(iii) of this paragraph, the Warrant need not be delivered
to the Company provided that the Warrant Holder agrees to make a notation of
such partial exercise and, if applicable, surrender on the Warrant. If this
Warrant is delivered to the Company, the Company shall issue and deliver to the
Warrant Holder a new Warrant evidencing the rights to purchase the remaining
Warrant Shares, which new Warrant shall in all other respects be identical to
this Warrant.
2. Investment Representation.
The Warrant Holder by accepting this Warrant represents that the Warrant
Holder is acquiring this Warrant for its own account or the account of an
affiliate for investment purposes and not with the view to any offering or
distribution and that the Warrant Holder will not sell or otherwise dispose of
this Warrant or the underlying Warrant Shares in violation of applicable
securities laws. The Warrant Holder acknowledges that the certificates
representing any Warrant Shares will bear a legend indicating that they have not
been registered under the Act, and may not be sold by the Warrant Holder except
pursuant to an effective registration or pursuant to an exemption from
registration. The Warrant Holder shall be entitled to include the Warrant Shares
in any demand or piggyback registration to which Warrant Holder is otherwise
entitled in respect of Common Stock held by it, in accordance with (and subject
to) the terms and conditions of any agreement between the Company and the
Warrant Holder with respect to such registration rights.
3. Validity of Warrant and Issue of Shares.
The Company represents and warrants that this Warrant has been duly
authorized and validly issued and covenants and agrees that all shares of Common
Stock that may be issued upon the exercise of the rights represented by this
Warrant will, when issued upon such exercise, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
with respect to the issue thereof. The Company further covenants and agrees that
during the period within which the rights represented by this Warrant may be
exercised, the Company will
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at all times have authorized and reserved a sufficient number of shares of
Common Stock to provide for the exercise of the rights represented by this
Warrant.
4. Antidilution Provisions.
The terms of this Warrant shall be subject to adjustment as follows:
(a) If the Company shall (i) pay a stock dividend or make a distribution
to holders of Common Stock in shares of its Common Stock, (ii) subdivide its
outstanding shares of Common Stock, (iii) combine its outstanding shares of
Common Stock into a smaller number of shares, or (iv) issue by reclassification
of its shares of Common Stock any shares of capital stock of the Company, (A)
the Exercise Price shall be increased or decreased, as the case may be, to an
amount which shall bear the same relation to the Exercise Price in effect
immediately prior to such action as the total number of shares outstanding
immediately prior to such action shall bear to the total number of shares
outstanding immediately after such action and (B) this Warrant automatically
shall be adjusted so that it shall thereafter evidence the right to purchase the
kind and number of Warrant Shares or other securities which the Warrant Holder
would have owned and would have been entitled to receive after such action if
this Warrant had been exercised immediately prior to such action or any record
date with respect thereto. An adjustment made pursuant to this subparagraph (a)
shall become effective retroactively immediately after the record date in the
case of a dividend or distribution of Common Stock and shall become effective
immediately after the effective date in the case of a subdivision, combination
or reclassification.
(b) If the Company shall fix a record date for the making of a
distribution to all holders of Common Stock (including any such distribution
made in connection with a consolidation or merger in which the Company is the
continuing corporation) of (i) assets (other than cash dividends or cash
distributions payable out of consolidated net income or retained earnings or
dividends payable in Common Stock), (ii) evidences of indebtedness or other debt
or equity securities of the Company, or of any corporation other than the
Company (except for the Common Stock of the Company) or (iii) subscription
rights, options or warrants to purchase any of the foregoing assets or
securities, whether or not such rights, options or warrants are immediately
exercisable (hereinafter collectively called "Distributions on Common Stock"),
the Company shall make provisions for the Warrant Holder to receive upon
exercise of this Warrant, a proportional amount (depending upon the extent to
which this Warrant is exercised) of such assets, evidences of indebtedness,
securities or such other rights, as if such Warrant Holder had exercised this
Warrant on or before such record date.
(c) In the case of any consolidation or merger of the Company with or into
another corporation or the sale of all or substantially all the assets of the
Company to another person or entity, this Warrant thereafter shall be
exercisable for the kind and amount of shares of stock or other securities or
property to which a holder of the number of shares of Common Stock of the
Company deliverable upon exercise of this Warrant would have been entitled upon
such
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consolidation, merger or sale; and, in such case, appropriate adjustment shall
be made in the application of the provisions in this paragraph 4, to the end
that the provisions set forth in this paragraph 4 (including provisions with
respect to changes in and adjustments of the exercise price) shall thereafter be
applicable, as nearly as reasonably may be, in relation to any shares of stock
or other securities or property thereafter deliverable upon the exercise of this
Warrant.
(d) Upon the occurrence of each adjustment or readjustment of the exercise
price or any change in the number of Warrant Shares or in the shares of stock or
other securities or property deliverable upon exercise of this Warrant pursuant
to this paragraph 4, the Company at its expense shall promptly compute such
adjustment or readjustment and change in accordance with the terms hereof and
furnish to each holder hereof a certificate signed by the chief financial
officer of the Company, setting forth such adjustment or readjustment and change
and showing in detail the facts upon which such adjustment or readjustment and
change is based. The Company shall, upon the written request at any time of the
Warrant Holder, furnish or cause to be furnished to such Holder, a similar
certificate setting forth (i) such adjustment or readjustment and change, (ii)
the Exercise Price then in effect, and (iii) the number of Warrant Shares and
the amount. if any, of other shares of stock and other securities and property
which would be received upon the exercise of the Warrant.
(e) The Company shall not be required upon the exercise of this Warrant to
issue any fraction of shares, but shall make any adjustment therefor by rounding
the number of shares obtainable upon exercise to the next highest whole number
of shares.
5. Transfer of Rights.
This Warrant is transferable in whole or in part, at the option of the
Warrant Holder upon delivery of the Warrant Assignment Form annexed as Annex B
hereto, duly executed. The Company shall execute and deliver a new Warrant or
Warrants in the form of this Warrant with appropriate changes to reflect the
issuance of subsequent Warrants, in the name of the assignee or assignees named
in such instrument of assignment and, if the Warrant Holder's entire interest is
not being transferred or assigned, in the name of the Warrant Holder, and this
Warrant shall promptly be canceled. Any transfer or exchange of this Warrant
shall be without charge to the Warrant Holder and any new Warrant or Warrants
issued shall be dated the date hereof. The term "Warrant" as used herein
includes any Warrants into which this Warrant may be divided or for which it may
be exchanged. The Warrant Holder (and not the Company) will be responsible for
any stamp, transfer or other taxes payable on any such transfer.
6. Lost, Mutilated or Missing Warrant.
Upon receipt by the Company of evidence satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant, and upon surrender and
cancellation of this Warrant, if mutilated, the Company shall execute and
deliver a new Warrant of like denomination and date.
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7. Rights of Warrant Holder.
The Warrant Holder shall not, by virtue hereof, be entitled to any voting
or other rights of a shareholder of the Company, either at law or equity, and
the rights of the Warrant Holder are limited to those expressed in this Warrant.
8. Successors.
All the provisions of this Warrant by or for the benefit of the Company or
the Warrant Holder shall bind and inure to the benefit of their respective
successors and assigns.
9. Miscellaneous.
(a) As used herein, the term "Common Stock" shall mean and include the
Company's currently authorized common stock, $.0l par value per share, and stock
of any other class or other consideration into which such currently authorized
Common Stock may hereafter have been changed.
(b) This Warrant shall be construed in accordance with and governed by
the laws of the State of Delaware.
(c) The caption headings used in this Warrant are for convenience of
reference only and shall not be construed in any way to affect the
interpretation of any provisions of this Warrant.
10. Notices.
Any notice pursuant to this Warrant shall be effective if sent by
first-class mail, postage prepaid, or delivered by facsimile transmission,
addressed as follows:
If to the Company, then to it at:
Lasertechnics, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: Chief Financial Officer
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
(or to such other address as the Company may have furnished in writing to
the Warrant Holder for this purpose); and
If to the Warrant Holder, then to it at such address as such Warrant
Holder may have furnished in writing to the Company for this purpose.
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IN WITNESS WHEREOF, the Company, intending to be legally bound hereby, has
caused this Warrant to be signed by its Vice President, and attested by its
Secretary or Assistant Secretary as of the date set forth below.
LASERTECHNICS, INC.
By: /s/ E.A. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Name: E.A. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Vice President
Attest:
/s/ E.A. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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Name: E.A. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Secretary
ISSUANCE DATE: September 5, 1997
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ANNEX A
COMMON STOCK PURCHASE WARRANT
NOTICE OF EXERCISE
____________________, 19__
To: LASERTECHNICS, INC.
The undersigned, pursuant to the provisions set forth in Warrant No. ________,
hereby irrevocably elects and agrees to purchase _______ shares of the Company's
Common Stock covered by such Warrant, and makes payment herewith in full
therefor of the Total Exercise Price of $_______.
The undersigned hereby represents that the undersigned is exercising such
Warrant for its own account or the account of an affiliate and will not sell or
otherwise dispose of the underlying Warrant Shares in violation of applicable
securities laws. If said number of shares is less than all of the shares
purchasable hereunder the undersigned requests that a new Warrant evidencing the
rights to purchase the remaining Warrant Shares (which new Warrant shall in all
other respects be identical to the Warrant exercised hereby) be registered in
the name of ____________________________ whose address is:
Signature:______________________________
Printed Name:___________________________
Address:________________________________
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ANNEX B
ASSIGNMENT
FOR VALUE RECEIVED ____________ hereby sells, assigns and transfers all of
its rights as set forth in Warrant No. ________ with respect to the shares of
the Company's Common Stock covered thereby as set forth below unto:
NAME OF ASSIGNEE(S) ADDRESS(ES) NO. OF SHARES
All notices to be given by the Company to the Warrant Holder pursuant to
paragraph 10 of Warrant No. _________ shall be sent to the Assignee(s) at the
above stated addresses, and, if the number of shares being hereby assigned is
less than all of the shares covered by Warrant No. _______, then also to the
undersigned.
The undersigned requests that the Company execute and deliver, if
necessary to comply with the provisions of paragraph 5 of Warrant No. _________,
a new Warrant or, if the number of shares being hereby assigned is less than all
of the shares covered by Warrant No. _______, new Warrants in the name of the
undersigned, the assignee and/or the assignees, as is appropriate.
Dated:._________, 19_
Signature:_______________________________
Printed Name:____________________________
Address:_________________________________
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