Exhibit 4.7
This
Share Purchase Agreement is made and entered into effective as of March 5, 2006 by and
among BVR Systems (1998) Ltd. (“BVR”), a company organized under the laws
of the State of Israel, with offices at 00 Xxxxxxxxx Xxxxxx, Xxxx Ha’ayin, Israel,
and Nir Dor acting on behalf of a limited partnership (in formation) (the
“Purchaser”).
WHEREAS |
|
The
Purchaser desires to acquire shares in BVR, and BVR wishes to issue and sell to the
Purchaser shares in BVR on the terms as set forth herein. |
Accordingly, in consideration of the
covenants and conditions hereinafter set forth, the parties hereto agree as follows:
1. |
Agreement
to Purchase and Sell |
1.1 |
Shares.
Subject to and in accordance with the terms and conditions of this Agreement, BVR shall
issue, and the Purchaser shall purchase 20,000,000 Ordinary Shares of BVR (the “Shares”),
nominal value NIS 1.00 each, at a price per share of $0.18 (eighteen cents) at an
aggregate consideration of $3,600,000 (three million six hundred thousand dollars) (the
“Purchase Price”). |
1.2 |
Warrant. Subject
to and in accordance with the terms and conditions of this Agreement, at the Closing BVR
shall issue to the Purchaser three warrants (the “Warrants”) to purchase, in
the aggregate, 18,000,000 Ordinary Shares (the “Warrant Shares”). Forms of the
Warrants are attached hereto as Exhibit 1.2. |
2.1 |
Closing
Date. The Closing of the transaction contemplated hereby (the "Closing") shall take
place on March 21, 2006 at 14:00 o'clock, at the offices of Xxxxx Xxxxx & Co., 0
Xxxxxxx Xxxxxx, Xxxxx Xxxxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxxxxx. |
2.2 |
Transfer
of Funds and Issuance of Certificate. At the Closing, the Purchaser shall transfer to
BVR the Purchase Price, by wire transfer into the account of BVR, Bank Hapoalim, Branch
615, Account #330330. |
2.3 |
At
the Closing BVR shall deliver to the Purchaser the following documents: |
|
(i) |
Resolutions
of BVR’s Board of Directors approving the execution and performance
of this Agreement including the issuance of the Shares and the Warrants
and the appointment of Mr. Nir Dor as a director of BVR until the next
annual shareholders meeting of BVR; |
|
(ii) |
The
Warrants dully executed; |
|
(iii) |
Approval
of the Investment Center, if required. |
2.4 |
BVR
hereby agrees, undertakes and covenants that it shall promptly after the Closing, but in
no event later than within 2 days thereafter record such issuance of the Shares and
Warrant in the name of the Purchaser on the records of BVR and in the Companies Registrar
and no later than 15 days thereafter provide the Purchaser with the share certificate
representing the Shares. |
3. |
Representations
and Warranties of BVR. |
|
BVR
hereby represents and warrants to the Purchaser as follows: |
3.1 |
Organization;
Power; etc. |
(a) |
BVR
is a company duly organized and validly existing under the laws of the State of
Israel. |
(b) |
BVR
has the requisite power and authority to execute, deliver and perform this
Agreement and to consummate the transactions contemplated hereby. The
execution, delivery and performance by BVR of this Agreement and consummation
of the transactions contemplated hereby have been duly authorized by all
necessary corporate actions of BVR. Following the execution of this Agreement,
this Agreement will constitute a valid and binding obligation of BVR,
enforceable in accordance with its terms. Except for the approvals of the
Office of the Chief Scientist and the Investment Center no consent or other
approval is necessary for the consummation of the transactions contemplated
hereby or the implementation thereof. |
3.2 |
Capitalization.
The authorized capitalization of BVR on the date of the Closing shall be 200,000,000 New
Israeli Shekel divided to 200,000,000 Ordinary Shares, par value NIS 1.00 each. Enclosed
as Exhibit 3.2 hereto is a capitalization table of the Company showing all of the
outstanding shares of the Company and all outstanding or enforceable subscriptions, calls
or convertible securities on the date hereof; notwithstanding the above the
capitalization table does not include the issuance of 11,111,111 Ordinary Shares of BVR,
par value NIS 1.00 each, to the shareholder of Blueridge Simulation Inc., which is
currently under negotiations. All of the outstanding Ordinary Shares have been validly
issued and are fully paid and non-assessable with no personal liability attaching to the
ownership thereof. |
3.3 |
Title
of Shares. The Shares of BVR which will be issued to the Purchaser according to this
Agreement, will be duly authorized, validly issued, fully paid, and non assessable, and
free and clear of liens, security interests, pledges, charges, claims, encumbrances,
pre-emptive rights or any other third party rights. |
3.4 |
Securities
Exchange Commission. All reports and statements required to be filed by BVR, with the
Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), have been filed and all such reports and
statements conformed in all material respects with the applicable requirements of the
Exchange Act and any pertinent rules and regulations thereunder, and did not, as of the
respective dates thereof, contain any untrue statement of any material fact or omit to
state any material fact required to be stated therein or necessary to make the statements
therein not materially misleading. |
4. |
Representations
and Warranties of the Purchaser. |
|
The
Purchaser hereby represents and warrants to BVR as follows: |
4.1 |
Organizations;
Power. |
|
(a) |
The
Purchaser is a duly organized, validly existing and in good standing under
the laws of its state of incorporation. |
|
(b) |
The
Purchaser has the requisite power and authority to execute, deliver and
perform this Agreement and to consummate the transactions
contemplated hereby. Following the execution of this Agreement, this
Agreement will constitute a valid and binding obligation of the
Purchaser, enforceable in accordance with its terms. No consent or
other approval is necessary for the consummation of the transaction
contemplated hereby or the implementation thereof. The performance by
the Purchaser of its obligations under this Agreement will not constitute, or
result in, a breach of any undertaking of the Purchaser. |
4.2 |
Purchase
for Investment. The Purchaser is acquiring the Shares for its own account for
investment and without a view to the distribution or resale of such Shares, it being
understood that this Section 4.2 shall not prevent the Purchaser from selling or
otherwise disposing of any of the Shares in any transaction which does not violate the
Securities Act of 1933, as amended (the “1933 Act”). |
4.3 |
U.S.
Federal Securities Laws. None of the Shares acquired hereunder may be sold,
transferred or otherwise disposed of (any such sale, transfer or other disposition, a
“sale”), except in compliance with (i) United States Federal Securities laws
(which generally provide for a 12 month waiting period before resale of restricted
securities), (ii) state blue sky laws. |
4.4 |
Legend
on Shares. The certificate representing the Shares shall be stamped or otherwise
imprinted on its face with a legend in the following form: |
|
“The
shares represented by this certificate have not been registered under the Securities Act
of 1933 (the “Securities Act”) and may not be sold, transferred, pledged,
hypothecated or otherwise disposed of in the absence of (1) an effective Registration
Statement under the securities act, (2) to the extent applicable, an exemption pursuant to
Rule 144 under Securities Act (or similar rule under the Securities Act relating to the
disposition of securities) or (3) an opinion of counsel, if such opinion shall be
reasonably satisfactory to counsel for issuer, that an exemption from registration under
the Securities Act is available. The Shares have been acquired for investment and may not
be sold, transferred or otherwise disposed of except in compliance with the Securities
Act.” |
5. |
Certain
Covenants of the Parties. |
|
(a) |
BVR
undertakes that, as long as the Purchaser holds at least nine percent (9%)
of the outstanding share capital of BVR, a nominee designated in
writing by the Purchaser (the “Purchaser’s Nominee”)
shall be appointed as a member of the Board of Directors of BVR. |
|
(b) |
The
Board of Directors of BVR shall appoint Nir Dor as a member of the Board of
Directors of BVR for the period commencing on the Closing and
expiring on the next annual shareholders meeting of BVR. |
|
(c) |
For
as long as the Purchaser holds at least nine percent (9%) of the outstanding
share capital of BVR, the Board of Directors of BVR will recommend to
the shareholders of BVR in the proxy materials prepared for the
annual shareholders meeting of BVR, to appoint the Purchaser’s
Nominee as a member of the Board of Directors of BVR. |
5.2 |
The
Parties shall use their best efforts, and will cooperate with one another, to secure all
necessary consents, approvals, authorizations and exemptions from governmental agencies
as shall be required in order to consummate the transactions contemplated hereby in
accordance with the terms and conditions hereof. |
5.3 |
From
the date of this Agreement to the Closing, BVR shall (i) provide Purchaser with such
information as Purchaser may from time to time reasonably request with respect to BVR and
the transactions contemplated by this Agreement, (ii) provide Purchaser and its officers,
counsel and other authorized representatives reasonable access during regular business
hours and upon reasonable notice to the properties, books, and records of BVR, or as may
otherwise from time to time reasonably request, and (iii) permit Purchaser to make such
inspections thereof as Purchaser may reasonably request. Notwithstanding the above BVR
shall only be required to provide the above information subject to the Purchaser signing
a non disclosure agreement which is reasonable in the circumstances. |
6.1 |
Successors
and Assigns. The terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors of the parties hereto; provided, however,
that this Agreement may not be assigned by any party without the prior written consent of
the other party hereto. |
6.2 |
Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all
purposes be deemed to be an original and all of which shall constitute the same
instrument. |
6.3 |
Headings.
The headings of the Sections and paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction hereof. |
6.4 |
No
Waiver. No action taken pursuant to this Agreement, including any investigation by or
on behalf of any party hereto, will be deemed to constitute a waiver by the party taking
any action of compliance with any representation, warranty or agreement contained herein.
The waiver by any party hereto of any condition or of a breach of any other provision of
this Agreement will not operate or be construed as a waiver of any other condition or
subsequent breach. The waiver by any party of any of the conditions precedent to its
obligations under the Agreement will not preclude it from seeking redress for breach of
this Agreement other than with respect to the condition so waived. |
6.5 |
No
Broker. Each of the Parties represents, as to itself, its subsidiaries and its
affiliates, that no agent, broker, investment banker or other firm or person, is or shall
be entitled to any broker’s or finder’s fee or any other commission or similar
fee in connection with this Agreement. |
6.6 |
Notices.
Any notice, request, instruction or other document (each, a “notice”) to be
given hereunder by any party hereto to any other party hereto shall be in writing and
delivered personally, faxed or sent by registered or certified mail, postage prepaid, |
|
Fax
number: 000-0-0000000 |
|
0
Xxxxxxx Xxxxxx, Xxx Xxxx |
|
Fax
number: 000-0-0000000 |
|
Attention
- Orly Tsioni, Adv. |
|
Erdinast,
Xxx Xxxxxx & Co. |
|
00
Xxxxxxxx Xxxxxx, Xxx Xxxx |
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Fax
number: 000-0-0000000 |
|
Attention:
Giora Erdinast, Adv. |
|
The
Laws of the State of Israel shall govern the validity, performance and enforcement of this
Agreement. The parties hereto irrevocably submit to the exclusive jurisdiction of the
Courts of Tel-Aviv in respect of any dispute or matter arising out of or connected with
this Agreement. |
IN WITNESS WHEREOF, each of the
parties hereto has caused this Agreement to be executed on its behalf as of the date first
above written.
/s/ Aviv Tzidon
——————————————
/s/ BVR Systems (1998) Ltd. |
/s/ Nir Dor
——————————————
Nir Dor |
Exhibit 3.2
Shareholders |
Total |
Total % |
Options |
fully diluted |
fully diluted % |
Chun |
58,142,608 |
60.03% |
10,864,444 |
69,007,052 |
51.54% |
YaronS |
456,328 |
0.47% |
72,000 |
528,328 |
0.39% |
Polar |
3,070,400 |
3.17% |
1,247,282 |
4,317,682 |
3.22% |
Koonras |
3,181,807 |
3.28% |
911,678 |
4,093,485 |
3.06% |
Public |
2,084,287 |
2.15% |
|
2,084,287 |
1.56% |
New Investors |
17,150,447 |
17.71% |
7,769,040 |
24,919,487 |
18.61% |
Bank Leumi |
6,111,111 |
6.31% |
- |
6,111,111 |
4.56% |
Bank Hapoalim |
3,888,889 |
4.01% |
1,388,889 |
5,277,778 |
3.94% |
Industrial Bank |
1,111,111 |
1.15% |
80,000 |
1,191,111 |
0.89% |
Aviv Tzidon |
- |
0.00% |
9,000,000 |
9,000,000 |
6.72% |
Gillies |
- |
0.00% |
1,000,000 |
1,000,000 |
0.75% |
ESOP |
- |
0.00% |
398,300 |
398,300 |
0.30% |
new ESOP |
- |
0.00% |
3,721,000 |
3,721,000 |
2.78% |
Directors |
- |
0.00% |
576,000 |
576,000 |
0.43% |
Wise Pte |
600,000 |
0.62% |
|
600,000 |
0.45% |
Tact |
63,547 |
0.07% |
|
63,547 |
0.05% |
Electra |
1,000,000 |
1.03% |
|
1,000,000 |
0.75% |
|
96,860,535 |
100.00% |
37,028,633 |
133,889,168 |
100.00% |
THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY STATE OR
FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS
THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING THIS
WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE
HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH
SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER
APPLICABLE STATE OR FOREIGN LAW.
THIS WARRANT IS NOT
TRANSFERABLE
WARRANT TO PURCHASE ORDINARY
SHARES
BVR Systems (1998) Ltd., an Israeli
Company (the “Company”), hereby grants to H.S.N. General Managers
Holdings Limited Partnership (the “Holder”), the right to purchase from
the Company 6,000,000 Ordinary Shares of the Company, nominal value NIS 1.00 (the
“Ordinary Shares”), subject to the terms and conditions set forth below,
effective as of March 21, 2006 (the “Effective Date”).
1. |
Number
of Ordinary Shares Available for Purchase |
|
This
Warrant may be exercised to purchase up to 6,000,000 Ordinary Shares having an aggregate
exercise price in the amount of two million one hundred sixty thousand U.S. Dollars
($2,160,000) (the “Exercise Amount”), at an exercise price per each
Ordinary Share as set forth in Section 2 below, subject to adjustments under Section 7 of
this Warrant (the “Warrant Shares”). |
|
The
exercise price for each Warrant Share purchasable hereunder shall be equal to 36 Cents
($0.36), subject to adjustments under Section 7 of this Warrant (the “Warrant
Price”). |
|
This
Warrant may be exercised, in whole or in part, at any time and from time to time, during
the period beginning on the Effective Date and until March 21, 2009 (the “Exercise
Period”). |
|
This
Warrant may be exercised in whole or in part on one or more occasions during the Exercise
Period. The Warrant may be exercised by the surrender of the Warrant to the Company at its
principal office together with the Notice of Exercise annexed hereto duly completed and
executed on behalf of the Holder. |
|
To
exercise this Warrant, the Notice of Exercise must be accompanied by payment in full of
the amount of the aggregate Exercise Amount of the Warrant Shares being purchased upon
such exercise in immediately available funds. |
|
b. |
Issuance
of Shares on Exercise |
|
The
Company agrees that the Warrant Shares so purchased shall be issued as soon as possible
after receipt of the Notice of Exercise and payment of the exercise price and the Holder
shall be deemed the record owner of such Warrant Shares as of and from the close of
business on the date on which this Warrant shall be surrendered, together with payment in
full as required above. In the event of a partial exercise, in accordance with Section 4
above, the Company shall concurrently issue to the Holder a replacement Warrant on the
same terms and conditions as this Warrant, but representing the number of Warrant Shares
remaining after such partial exercise. |
|
(i)
the average closing price of the ordinary shares of the Company equals or
exceeds $0.45 per share, during a period of 90 consecutive days (the
“Period”); and |
|
(ii)
the trade volume of the ordinary shares of the Company is at least $1
million during the Period; and |
|
(iii)
either the Company registered the Holder’s ordinary shares in
the Company or the Warrant Shares under the Securities Act of 1933
making such shares transferable without any restrictions, or 12
months from the date hereof have elapsed; |
|
the
Holder must exercise this Warrant within 14 days from the end of the Period, or the
Warrant will expire (as the sole and only consequence in the event the Holder does not
exercise the Warrant). The Company shall notify the Holder within 2 days of the end of the
Period that the mandatory exercise provisions of this Section 4c. is effective. |
|
No
fractional shares will be issued in connection with any exercise hereunder, but in lieu of
such fractional shares the Company shall make cash payment therefor upon the basis of the
current market price of such shares then in effect as determined in good faith by the
Company’s Board of Directors. |
- 2 -
6. |
Warrant
Confers No Rights of Shareholder |
|
Except
as otherwise set forth in this Warrant, the Holder shall not have any rights as a
shareholder of the Company with regard to the Warrant Shares prior to actual exercise
resulting in the purchase of any Warrant Shares. |
7. |
Adjustment
of Warrant Price and Number of Shares |
|
The
number and kind of securities purchasable initially upon the exercise of this Warrant and
the Warrant Price shall be subject to adjustment from time to time upon the occurrence of
certain events, as follows: |
|
a. |
Adjustment
for Shares Splits and Combinations If the Company at any
time or from time to time effects a subdivision of the outstanding
Ordinary Shares, the number of Ordinary Shares issuable upon exercise of
this Warrant immediately before the subdivision shall be proportionately
increased, and conversely, if the Company at any time or from time to time
combines the outstanding Ordinary Shares, the number of Ordinary Shares
issuable upon exercise of this Warrant immediately before the combination
shall be proportionately decreased. Any adjustment under this Section 7(a)
shall become effective at the close of business on the date the
subdivision or combination becomes effective. |
|
b. |
Adjustment
for Certain Dividends and Distributions In the event the
Company at any time, or from time to time makes, or fixes a record date
for the determination of holders of Ordinary Shares entitled to receive a
dividend or other distribution payable in additional shares of Ordinary
Shares, then and in each such event the number of Ordinary Shares issuable
upon exercise of this Warrant shall be increased as of the time of such
issuance or, in the event such a record date is fixed, as of the close of
business on such record date, by multiplying the number of Ordinary Shares
issuable upon exercise of this Warrant by a fraction: (i) the numerator of
which shall be the total number of Ordinary Shares issued and outstanding
immediately prior to the time of such issuance or the close of business on
such record date plus the number of Ordinary Shares issuable in payment of
such dividend or distribution, and (ii) the denominator of which is the
total number of shares of Ordinary Shares issued and outstanding
immediately prior to the time of such issuance or the close of business on
such record date; provided, however, that if such record date is
fixed and such dividend is not fully paid or if such distribution is not
fully made on the date fixed thereof, the number of Ordinary Shares
issuable upon exercise of this Warrant shall be recomputed accordingly as
of the close of business on such record date and thereafter the number of
shares of Ordinary Shares issuable upon exercise of this Warrant shall be
adjusted pursuant to this Section 7(b) as of the time of actual payment of
such dividends or distributions. |
- 3 -
|
c. |
Adjustments
for Other Dividends and Distributions. In the event the Company at
any time or from time to time makes, or fixes a record date for the
determination of holders of Ordinary Shares entitled to receive a dividend
or other distribution payable in securities of the Company other than
Ordinary Shares, then in each such event provision shall be made so that
the Holder shall receive upon exercise of this Warrant, in addition to the
number of Ordinary Shares receivable thereupon, the amount of securities
of the Company that the Holder would have received had this Warrant been
exercised for Ordinary Shares immediately prior to such event (or the
record date for such event) and had the Holder thereafter, during the
period from the date of such event to and including the date of exercise,
retained such securities receivable by it as aforesaid during such period,
subject to all other adjustments called for during such period under this
Section and the Company’s Articles of Association with respect to the
rights of the Holder. |
|
d. |
Adjustment
for Reclassification, Exchange and Substitution If the
Ordinary Shares issuable upon the exercise of this Warrant are changed
into the same or a different number of shares of any class or classes of
shares, whether by recapitalization, reclassification or otherwise (other
than a subdivision or combination of shares or shares dividend provided
for elsewhere in this Section), then and in any such event the Holder
shall have the right thereafter to exercise this Warrant into the kind and
amount of shares and other securities receivable upon such
recapitalization, reclassification or other change, by holders of the
number of shares of Ordinary Shares for which this Warrant might have been
exercised immediately prior to such recapitalization, reclassification or
change, all subject to further adjustment as provided herein and under the
Company’s Articles of Association. Similar adjustments will be made
in the event of a consolidation, merger or reorganization of the Company
with or into, or a sale of all or substantially all of the Company’s
assets, or substantially all of the Company’s issued and outstanding
share capital, to, any other company, or any other entity or person. |
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e. |
Adjustment
of Warrant Price. Upon each adjustment in the number of
Ordinary Shares purchasable hereunder, the Warrant Price shall be
proportionately increased or decreased, as the case may be, in a manner
that is the inverse of the manner in which the number of Ordinary Shares
purchasable hereunder shall be adjusted. |
|
f. |
General
Protection. The Company will not by amendment of its
Articles of Association or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of its securities or
any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed hereunder, or
impair the economic interest of the Holder, but will at all times in good
faith assist in the carrying out of all provisions hereof and in taking of
all such actions and making all such adjustments as may be necessary or
appropriate in order to protect the rights and economic interest of the
Holder against any impairment. |
- 4 -
8. |
Representations
and Covenants of the Company. The Company represents and
warrants as follows: |
|
a. |
that
all corporate actions on the part of the Company, its officers, directors
and shareholders necessary for the sale and issuance of the Warrant and
the Warrant Shares and the performance of the Company’s obligations
hereunder have been taken and are effective as of the date hereof. |
|
b. |
All
of the Warrants Shares issuable upon the exercise of this Warrant will, upon
issuance, be fully paid and nonassessable, and free from all liens,
charges, preemptive rights, rights of first refusal and similar rights
with respect to the issue thereof. |
9. |
Representations
and Warranties by the Holder. The Holder represents and warrants
to the Company as follows: |
|
a. |
The
Holder understands that the Warrant and the Warrant Shares have not been
registered under the Securities Act, or another comparable law, by reason
of their issuance in a transaction exempt from registration under the
Securities Act pursuant to Section 4(2) thereof, and that the Holder must
therefore bear the economic risk of such investment indefinitely, unless
the Warrant Shares have been registered for resale under the Securities
Act or such resale is exempted from such registration. The Holder is aware
of the provisions of Rule 144 promulgated under the Securities Act and its
requirements for the resale of the Warrant Shares which permits limited
resale of shares purchased in a private placement subject to the
satisfaction of certain conditions, including, among other things, the
existence of a public market for the shares, the availability of certain
current public information about the Company, the resale occurring not
less than one year after a party has purchased and paid for the security to
be sold, the sale being effected through a “broker’s transaction” or
in transactions directly with a “market maker” and the number of
shares being sold during any three-month period not exceeding specified
limitations. |
|
b. |
The
Holder has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of the purchase of
this Warrant and Warrant Shares purchasable pursuant to the terms of this
Warrant and of protecting its interests in connection therewith. The
Holder is able to bear the economic risk of the purchase of the Warrant
Shares pursuant to the terms of this Warrant including an entire loss of
the value of such investment. |
- 5 -
|
c. |
The
Holder understands that the Warrant and the Warrant Shares have not been
registered under the Securities Act, in part, by reason of a specific
exemption from the registration provisions of the Act, the availability of
which depends upon, among other things, the bona fide nature of the
investment intent and the accuracy of the Holder’s representations as
expressed herein. |
|
The
Holder consents to the placement of legend(s) on all securities hereunder as to the
applicable restrictions on transferability in order to ensure compliance with the
Securities Act. |
11. |
Loss,
Theft, Destruction or Mutilation of Warrant |
|
Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of any Warrant, and in case of loss, theft or destruction, of
indemnity, or security reasonably satisfactory to it, and upon reimbursement to the
Company of all reasonable expenses incidental thereto, and upon surrender and cancellation
of such Warrant, if mutilated, the Company will make and deliver a new Warrant of like
tenor and dated as of such cancellation, in lieu of such Warrant. |
12. |
Applicable
Law; Jurisdiction |
|
This
Warrant shall be governed by and construed in accordance with the laws of the State of
Israel as applicable to contracts between two residents of the State of Israel entered
into and to be performed entirely within the State of Israel. Any dispute arising under or
in relation to this Warrant shall be resolved exclusively in the competent court for Tel
Aviv-Jaffa district, and each of the parties hereby submits irrevocably to the exclusive
jurisdiction of such court. |
|
By:
Aviv Tsidon, CEO and Xxxxxx Xxxxxx, CFO |
- 6 -
NOTICE OF EXERCISE
To:
BVR Systems (1998) Ltd.
00 Xxxxxxxxx Xxxxxx,
Xxxx Xx'xxxx
Xxxxxx
1. |
The
undersigned hereby elects to purchase _________ shares of Ordinary Shares of
BVR Systems (1998) Ltd., pursuant to the terms of the attached Warrant, (a)
tenders herewith payment of the purchase price for such shares in full. |
2. |
In
exercising this Warrant, the undersigned hereby confirms and acknowledges the
representation under Section 9 of the Warrant and that the shares of Ordinary
Shares are being acquired solely for the account of the undersigned and not as
a nominee for any other party, or for investment, and that the undersigned will
not offer, sell or otherwise dispose of any such shares of Ordinary Shares
except under circumstances that will not result in a violation of the
Securities Act of 1933, as amended, or any state securities laws. |
3. |
Please
issue a certificate representing said shares of Ordinary Shares in the name of: _________________ _________________ _________________ _________________ |
4. |
Please
issue a new Warrant for the unexercised portion of the attached Warrant in the
name of the undersigned. |
|
|
|
|
|
|
_________________________ |
_________________________ |
(Date) |
(Print Name) |
|
|
_________________________ |
|
(Signature) |
- 7 -
THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY STATE OR
FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS
THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING THIS
WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE
HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH
SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER
APPLICABLE STATE OR FOREIGN LAW.
THIS WARRANT IS NOT
TRANSFERABLE
WARRANT TO PURCHASE ORDINARY
SHARES
BVR Systems (1998) Ltd., an Israeli
Company (the “Company”), hereby grants to H.S.N. General Managers
Holdings Limited Partnership (the “Holder”), the right to purchase from
the Company 6,000,000 Ordinary Shares of the Company, nominal value NIS 1.00 (the
“Ordinary Shares”), subject to the terms and conditions set forth below,
effective as of March 21, 2006 (the “Effective Date”).
1. |
Number
of Ordinary Shares Available for Purchase |
|
This
Warrant may be exercised to purchase up to 6,000,000 Ordinary Shares having an aggregate
exercise price in the amount of three million two hundred forty thousand U.S. Dollars
($3,240,000) (the “Exercise Amount”), at an exercise price per each
Ordinary Share as set forth in Section 2 below, subject to adjustments under Section 7 of
this Warrant (the “Warrant Shares”). |
|
The
exercise price for each Warrant Share purchasable hereunder shall be equal to 54 Cents
($0.54), subject to adjustments under Section 7 of this Warrant (the “Warrant
Price”). |
|
This
Warrant may be exercised, in whole or in part, at any time and from time to time, during
the period beginning on the Effective Date and until March 21, 2009 (the “Exercise
Period”). |
|
This
Warrant may be exercised in whole or in part on one or more occasions during the Exercise
Period. The Warrant may be exercised by the surrender of the Warrant to the Company at its
principal office together with the Notice of Exercise annexed hereto duly completed and
executed on behalf of the Holder. |
|
To
exercise this Warrant, the Notice of Exercise must be accompanied by payment in full of
the amount of the aggregate Exercise Amount of the Warrant Shares being purchased upon
such exercise in immediately available funds. |
|
b. |
Issuance
of Shares on Exercise |
|
The
Company agrees that the Warrant Shares so purchased shall be issued as soon as possible
after receipt of the Notice of Exercise and payment of the exercise price and the Holder
shall be deemed the record owner of such Warrant Shares as of and from the close of
business on the date on which this Warrant shall be surrendered, together with payment in
full as required above. In the event of a partial exercise, in accordance with Section 4
above, the Company shall concurrently issue to the Holder a replacement Warrant on the
same terms and conditions as this Warrant, but representing the number of Warrant Shares
remaining after such partial exercise. |
|
(i)
the average closing price of the ordinary shares of the Company equals or
exceeds $0.675 per share, during a period of 90 consecutive days (the
“Period”); and |
|
(ii)
the trade volume of the ordinary shares of the Company is at least $1
million during the Period; and |
|
(iii)
either the Company registered the Holder’s ordinary shares in
the Company or the Warrant Shares under the Securities Act of 1933
making such shares transferable without any restrictions, or 12
months from the date hereof have elapsed; |
|
the
Holder must exercise this Warrant within 14 days from the end of the Period, or the
Warrant will expire (as the sole and only consequence in the event the Holder does not
exercise the Warrant). The Company shall notify the Holder within 2 days of the end of the
Period that the mandatory exercise provisions of this Section 4c. is effective. |
|
No
fractional shares will be issued in connection with any exercise hereunder, but in lieu of
such fractional shares the Company shall make cash payment therefor upon the basis of the
current market price of such shares then in effect as determined in good faith by the
Company’s Board of Directors. |
- 2 -
6. |
Warrant
Confers No Rights of Shareholder |
|
Except
as otherwise set forth in this Warrant, the Holder shall not have any rights as a
shareholder of the Company with regard to the Warrant Shares prior to actual exercise
resulting in the purchase of any Warrant Shares. |
7. |
Adjustment
of Warrant Price and Number of Shares |
|
The
number and kind of securities purchasable initially upon the exercise of this Warrant and
the Warrant Price shall be subject to adjustment from time to time upon the occurrence of
certain events, as follows: |
|
a. |
Adjustment
for Shares Splits and Combinations If the Company at any
time or from time to time effects a subdivision of the outstanding
Ordinary Shares, the number of Ordinary Shares issuable upon exercise of
this Warrant immediately before the subdivision shall be proportionately
increased, and conversely, if the Company at any time or from time to time
combines the outstanding Ordinary Shares, the number of Ordinary Shares
issuable upon exercise of this Warrant immediately before the combination
shall be proportionately decreased. Any adjustment under this Section 7(a)
shall become effective at the close of business on the date the
subdivision or combination becomes effective. |
|
b. |
Adjustment
for Certain Dividends and Distributions In the event the
Company at any time, or from time to time makes, or fixes a record date
for the determination of holders of Ordinary Shares entitled to receive a
dividend or other distribution payable in additional shares of Ordinary
Shares, then and in each such event the number of Ordinary Shares issuable
upon exercise of this Warrant shall be increased as of the time of such
issuance or, in the event such a record date is fixed, as of the close of
business on such record date, by multiplying the number of Ordinary Shares
issuable upon exercise of this Warrant by a fraction: (i) the numerator of
which shall be the total number of Ordinary Shares issued and outstanding
immediately prior to the time of such issuance or the close of business on
such record date plus the number of Ordinary Shares issuable in payment of
such dividend or distribution, and (ii) the denominator of which is the
total number of shares of Ordinary Shares issued and outstanding
immediately prior to the time of such issuance or the close of business on
such record date; provided, however, that if such record date is
fixed and such dividend is not fully paid or if such distribution is not
fully made on the date fixed thereof, the number of Ordinary Shares
issuable upon exercise of this Warrant shall be recomputed accordingly as
of the close of business on such record date and thereafter the number of
shares of Ordinary Shares issuable upon exercise of this Warrant shall be
adjusted pursuant to this Section 7(b) as of the time of actual payment of
such dividends or distributions. |
- 3 -
|
c. |
Adjustments
for Other Dividends and Distributions. In the event the Company at
any time or from time to time makes, or fixes a record date for the
determination of holders of Ordinary Shares entitled to receive a dividend
or other distribution payable in securities of the Company other than
Ordinary Shares, then in each such event provision shall be made so that
the Holder shall receive upon exercise of this Warrant, in addition to the
number of Ordinary Shares receivable thereupon, the amount of securities
of the Company that the Holder would have received had this Warrant been
exercised for Ordinary Shares immediately prior to such event (or the
record date for such event) and had the Holder thereafter, during the
period from the date of such event to and including the date of exercise,
retained such securities receivable by it as aforesaid during such period,
subject to all other adjustments called for during such period under this
Section and the Company’s Articles of Association with respect to the
rights of the Holder. |
|
d. |
Adjustment
for Reclassification, Exchange and Substitution If the
Ordinary Shares issuable upon the exercise of this Warrant are changed
into the same or a different number of shares of any class or classes of
shares, whether by recapitalization, reclassification or otherwise (other
than a subdivision or combination of shares or shares dividend provided
for elsewhere in this Section), then and in any such event the Holder
shall have the right thereafter to exercise this Warrant into the kind and
amount of shares and other securities receivable upon such
recapitalization, reclassification or other change, by holders of the
number of shares of Ordinary Shares for which this Warrant might have been
exercised immediately prior to such recapitalization, reclassification or
change, all subject to further adjustment as provided herein and under the
Company’s Articles of Association. Similar adjustments will be made
in the event of a consolidation, merger or reorganization of the Company
with or into, or a sale of all or substantially all of the Company’s
assets, or substantially all of the Company’s issued and outstanding
share capital, to, any other company, or any other entity or person. |
|
e. |
Adjustment
of Warrant Price. Upon each adjustment in the number of
Ordinary Shares purchasable hereunder, the Warrant Price shall be
proportionately increased or decreased, as the case may be, in a manner
that is the inverse of the manner in which the number of Ordinary Shares
purchasable hereunder shall be adjusted. |
|
f. |
General
Protection. The Company will not by amendment of its
Articles of Association or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of its securities or
any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed hereunder, or
impair the economic interest of the Holder, but will at all times in good
faith assist in the carrying out of all provisions hereof and in taking of
all such actions and making all such adjustments as may be necessary or
appropriate in order to protect the rights and economic interest of the
Holder against any impairment. |
- 4 -
8. |
Representations
and Covenants of the Company. The Company represents and
warrants as follows: |
|
a. |
that
all corporate actions on the part of the Company, its officers, directors
and shareholders necessary for the sale and issuance of the Warrant and
the Warrant Shares and the performance of the Company’s obligations
hereunder have been taken and are effective as of the date hereof. |
|
b. |
All
of the Warrants Shares issuable upon the exercise of this Warrant will, upon
issuance, be fully paid and nonassessable, and free from all liens,
charges, preemptive rights, rights of first refusal and similar rights
with respect to the issue thereof. |
9. |
Representations
and Warranties by the Holder. The Holder represents and warrants
to the Company as follows: |
|
a. |
The
Holder understands that the Warrant and the Warrant Shares have not been
registered under the Securities Act, or another comparable law, by reason
of their issuance in a transaction exempt from registration under the
Securities Act pursuant to Section 4(2) thereof, and that the Holder must
therefore bear the economic risk of such investment indefinitely, unless
the Warrant Shares have been registered for resale under the Securities
Act or such resale is exempted from such registration. The Holder is aware
of the provisions of Rule 144 promulgated under the Securities Act and its
requirements for the resale of the Warrant Shares which permits limited
resale of shares purchased in a private placement subject to the
satisfaction of certain conditions, including, among other things, the
existence of a public market for the shares, the availability of certain
current public information about the Company, the resale occurring not
less than one year after a party has purchased and paid for the security to
be sold, the sale being effected through a “broker’s transaction” or
in transactions directly with a “market maker” and the number of
shares being sold during any three-month period not exceeding specified
limitations. |
|
b. |
The
Holder has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of the purchase of
this Warrant and Warrant Shares purchasable pursuant to the terms of this
Warrant and of protecting its interests in connection therewith. The
Holder is able to bear the economic risk of the purchase of the Warrant
Shares pursuant to the terms of this Warrant including an entire loss of
the value of such investment. |
- 5 -
|
c. |
The
Holder understands that the Warrant and the Warrant Shares have not been
registered under the Securities Act, in part, by reason of a specific
exemption from the registration provisions of the Act, the availability of
which depends upon, among other things, the bona fide nature of the
investment intent and the accuracy of the Holder’s representations as
expressed herein. |
|
The
Holder consents to the placement of legend(s) on all securities hereunder as to the
applicable restrictions on transferability in order to ensure compliance with the
Securities Act. |
11. |
Loss,
Theft, Destruction or Mutilation of Warrant |
|
Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of any Warrant, and in case of loss, theft or destruction, of
indemnity, or security reasonably satisfactory to it, and upon reimbursement to the
Company of all reasonable expenses incidental thereto, and upon surrender and cancellation
of such Warrant, if mutilated, the Company will make and deliver a new Warrant of like
tenor and dated as of such cancellation, in lieu of such Warrant. |
12. |
Applicable
Law; Jurisdiction |
|
This
Warrant shall be governed by and construed in accordance with the laws of the State of
Israel as applicable to contracts between two residents of the State of Israel entered
into and to be performed entirely within the State of Israel. Any dispute arising under or
in relation to this Warrant shall be resolved exclusively in the competent court for Tel
Aviv-Jaffa district, and each of the parties hereby submits irrevocably to the exclusive
jurisdiction of such court. |
|
By:
Aviv Tsidon, CEO and Xxxxxx Xxxxxx, CFO |
- 6 -
NOTICE OF EXERCISE
To:
BVR Systems (1998) Ltd.
16 Xxxxxxxxx Xxxxxx,
Xxxx Xx'xxxx
Xxxxxx
1. |
The
undersigned hereby elects to purchase _________ shares of Ordinary Shares of
BVR Systems (1998) Ltd., pursuant to the terms of the attached Warrant, (a)
tenders herewith payment of the purchase price for such shares in full. |
2. |
In
exercising this Warrant, the undersigned hereby confirms and acknowledges the
representation under Section 9 of the Warrant and that the shares of Ordinary
Shares are being acquired solely for the account of the undersigned and not as
a nominee for any other party, or for investment, and that the undersigned will
not offer, sell or otherwise dispose of any such shares of Ordinary Shares
except under circumstances that will not result in a violation of the
Securities Act of 1933, as amended, or any state securities laws. |
3. |
Please
issue a certificate representing said shares of Ordinary Shares in the name of: _________________ _________________ _________________ _________________ |
4. |
Please
issue a new Warrant for the unexercised portion of the attached Warrant in the
name of the undersigned. |
|
|
|
|
|
|
_________________________ |
_________________________ |
(Date) |
(Print Name) |
|
|
_________________________ |
|
(Signature) |
- 7 -
THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY STATE OR
FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS
THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING THIS
WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE
HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH
SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER
APPLICABLE STATE OR FOREIGN LAW.
THIS WARRANT IS NOT
TRANSFERABLE
WARRANT TO PURCHASE ORDINARY
SHARES
BVR Systems (1998) Ltd., an Israeli
Company (the “Company”), hereby grants to H.S.N. General Managers
Holdings Limited Partnership (the “Holder”), the right to purchase from
the Company 6,000,000 Ordinary Shares of the Company, nominal value NIS 1.00 (the
“Ordinary Shares”), subject to the terms and conditions set forth below,
effective as of March 21, 2006 (the “Effective Date”).
1. |
Number
of Ordinary Shares Available for Purchase |
|
This
Warrant may be exercised to purchase up to 6,000,000 Ordinary Shares having an aggregate
exercise price in the amount of six million U.S. Dollars ($6,000,000) (the “Exercise
Amount”), at an exercise price per each Ordinary Share as set forth in Section 2
below, subject to adjustments under Section 7 of this Warrant (the “Warrant Shares”). |
|
The
exercise price for each Warrant Share purchasable hereunder shall be equal to one US
Dollar ($1.00), subject to adjustments under Section 7 of this Warrant (the “Warrant
Price”). |
|
This
Warrant may be exercised, in whole or in part, at any time and from time to time, during
the period beginning on the Effective Date and until March 21, 2009 (the “Exercise
Period”). |
|
This
Warrant may be exercised in whole or in part on one or more occasions during the Exercise
Period. The Warrant may be exercised by the surrender of the Warrant to the Company at
its principal office together with the Notice of Exercise annexed hereto duly completed
and executed on behalf of the Holder. |
|
To
exercise this Warrant, the Notice of Exercise must be accompanied by payment in full of
the amount of the aggregate Exercise Amount of the Warrant Shares being purchased upon
such exercise in immediately available funds. |
|
b. |
Issuance
of Shares on Exercise |
|
The
Company agrees that the Warrant Shares so purchased shall be issued as soon as possible
after receipt of the Notice of Exercise and payment of the exercise price and the Holder
shall be deemed the record owner of such Warrant Shares as of and from the close of
business on the date on which this Warrant shall be surrendered, together with payment in
full as required above. In the event of a partial exercise, in accordance with Section 4
above, the Company shall concurrently issue to the Holder a replacement Warrant on the
same terms and conditions as this Warrant, but representing the number of Warrant Shares
remaining after such partial exercise. |
|
(i)
the average closing price of the ordinary shares of the Company equals or
exceeds $1.25 per share, during a period of 90 consecutive days (the
“Period”); and
(ii) the trade volume of the ordinary shares of the
Company is at least $1 million during the Period; and
(iii) either the Company
registered the Holder’s ordinary shares in the Company or the Warrant
Shares under the Securities Act of 1933 making such shares transferable without
any restrictions, or 12 months from the date hereof have elapsed; |
|
the
Holder must exercise this Warrant within 14 days from the end of the Period, or the
Warrant will expire (as the sole and only consequence in the event the Holder does not
exercise the Warrant). The Company shall notify the Holder within 2 days of the end of
the Period that the mandatory exercise provisions of this Section 4c. is effective. |
|
No
fractional shares will be issued in connection with any exercise hereunder, but in lieu
of such fractional shares the Company shall make cash payment therefor upon the basis of
the current market price of such shares then in effect as determined in good faith by the
Company’s Board of Directors. |
- 2 -
6. |
Warrant
Confers No Rights of Shareholder |
|
Except
as otherwise set forth in this Warrant, the Holder shall not have any rights as a
shareholder of the Company with regard to the Warrant Shares prior to actual exercise
resulting in the purchase of any Warrant Shares. |
7. |
Adjustment
of Warrant Price and Number of Shares |
|
The
number and kind of securities purchasable initially upon the exercise of this Warrant and
the Warrant Price shall be subject to adjustment from time to time upon the occurrence of
certain events, as follows: |
|
a. |
Adjustment
for Shares Splits and Combinations If the Company at
any time or from time to time effects a subdivision of the
outstanding Ordinary Shares, the number of Ordinary Shares issuable
upon exercise of this Warrant immediately before the subdivision
shall be proportionately increased, and conversely, if the Company at
any time or from time to time combines the outstanding Ordinary
Shares, the number of Ordinary Shares issuable upon exercise of this
Warrant immediately before the combination shall be proportionately
decreased. Any adjustment under this Section 7(a) shall become
effective at the close of business on the date the subdivision or
combination becomes effective. |
|
b. |
Adjustment
for Certain Dividends and Distributions In the event
the Company at any time, or from time to time makes, or fixes a record
date for the determination of holders of Ordinary Shares entitled to
receive a dividend or other distribution payable in additional shares
of Ordinary Shares, then and in each such event the number of
Ordinary Shares issuable upon exercise of this Warrant shall be
increased as of the time of such issuance or, in the event such a
record date is fixed, as of the close of business on such record
date, by multiplying the number of Ordinary Shares issuable upon
exercise of this Warrant by a fraction: (i) the numerator of which
shall be the total number of Ordinary Shares issued and outstanding
immediately prior to the time of such issuance or the close of
business on such record date plus the number of Ordinary Shares
issuable in payment of such dividend or distribution, and (ii) the
denominator of which is the total number of shares of Ordinary Shares issued
and outstanding immediately prior to the time of such issuance or the
close of business on such record date; provided, however, that
if such record date is fixed and such dividend is not fully paid or
if such distribution is not fully made on the date fixed thereof, the
number of Ordinary Shares issuable upon exercise of this Warrant
shall be recomputed accordingly as of the close of business on such
record date and thereafter the number of shares of Ordinary Shares
issuable upon exercise of this Warrant shall be adjusted pursuant to this
Section 7(b) as of the time of actual payment of such dividends or
distributions. |
- 3 -
|
c. |
Adjustments
for Other Dividends and Distributions. In the event the
Company at any time or from time to time makes, or fixes a record date for
the determination of holders of Ordinary Shares entitled to receive a
dividend or other distribution payable in securities of the Company
other than Ordinary Shares, then in each such event provision shall
be made so that the Holder shall receive upon exercise of this
Warrant, in addition to the number of Ordinary Shares receivable
thereupon, the amount of securities of the Company that the Holder
would have received had this Warrant been exercised for Ordinary Shares
immediately prior to such event (or the record date for such event)
and had the Holder thereafter, during the period from the date of
such event to and including the date of exercise, retained such
securities receivable by it as aforesaid during such period, subject
to all other adjustments called for during such period under this
Section and the Company’s Articles of Association with respect
to the rights of the Holder. |
|
d. |
Adjustment
for Reclassification, Exchange and Substitution If the
Ordinary Shares issuable upon the exercise of this Warrant are changed
into the same or a different number of shares of any class or classes
of shares, whether by recapitalization, reclassification or otherwise
(other than a subdivision or combination of shares or shares dividend
provided for elsewhere in this Section), then and in any such event
the Holder shall have the right thereafter to exercise this Warrant
into the kind and amount of shares and other securities receivable
upon such recapitalization, reclassification or other change, by
holders of the number of shares of Ordinary Shares for which this
Warrant might have been exercised immediately prior to such
recapitalization, reclassification or change, all subject to further
adjustment as provided herein and under the Company’s Articles
of Association. Similar adjustments will be made in the event of a
consolidation, merger or reorganization of the Company with or into,
or a sale of all or substantially all of the Company’s assets,
or substantially all of the Company’s issued and outstanding share
capital, to, any other company, or any other entity or person. |
|
e. |
Adjustment
of Warrant Price. Upon each adjustment in the number
of Ordinary Shares purchasable hereunder, the Warrant Price shall be
proportionately increased or decreased, as the case may be, in a
manner that is the inverse of the manner in which the number of
Ordinary Shares purchasable hereunder shall be adjusted. |
|
f. |
General
Protection. The Company will not by amendment of its
Articles of Association or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of its
securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or
performed hereunder, or impair the economic interest of the Holder,
but will at all times in good faith assist in the carrying out of all
provisions hereof and in taking of all such actions and making all
such adjustments as may be necessary or appropriate in order to
protect the rights and economic interest of the Holder against any
impairment. |
- 4 -
8. |
Representations
and Covenants of the Company. The Company represents and
warrants as follows: |
|
a. |
that
all corporate actions on the part of the Company, its officers, directors
and shareholders necessary for the sale and issuance of the Warrant
and the Warrant Shares and the performance of the Company’s
obligations hereunder have been taken and are effective as of the
date hereof. |
|
b. |
All
of the Warrants Shares issuable upon the exercise of this Warrant will, upon
issuance, be fully paid and nonassessable, and free from all liens,
charges, preemptive rights, rights of first refusal and similar
rights with respect to the issue thereof. |
9. |
Representations
and Warranties by the Holder. The Holder represents and warrants
to the Company as follows: |
|
a. |
The
Holder understands that the Warrant and the Warrant Shares have not been
registered under the Securities Act, or another comparable law, by
reason of their issuance in a transaction exempt from registration
under the Securities Act pursuant to Section 4(2) thereof, and that
the Holder must therefore bear the economic risk of such investment
indefinitely, unless the Warrant Shares have been registered for
resale under the Securities Act or such resale is exempted from such
registration. The Holder is aware of the provisions of Rule 144
promulgated under the Securities Act and its requirements for the resale of
the Warrant Shares which permits limited resale of shares purchased
in a private placement subject to the satisfaction of certain
conditions, including, among other things, the existence of a public
market for the shares, the availability of certain current public
information about the Company, the resale occurring not less than one
year after a party has purchased and paid for the security to be
sold, the sale being effected through a “broker’s transaction” or
in transactions directly with a “market maker” and the number of
shares being sold during any three-month period not exceeding
specified limitations. |
|
b. |
The
Holder has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of the purchase
of this Warrant and Warrant Shares purchasable pursuant to the terms
of this Warrant and of protecting its interests in connection
therewith. The Holder is able to bear the economic risk of the
purchase of the Warrant Shares pursuant to the terms of this Warrant
including an entire loss of the value of such investment. |
- 5 -
|
c. |
The
Holder understands that the Warrant and the Warrant Shares have not been
registered under the Securities Act, in part, by reason of a specific
exemption from the registration provisions of the Act, the
availability of which depends upon, among other things, the bona fide
nature of the investment intent and the accuracy of the Holder’s
representations as expressed herein. |
|
The
Holder consents to the placement of legend(s) on all securities hereunder as to the
applicable restrictions on transferability in order to ensure compliance with the
Securities Act. |
11. |
Loss,
Theft, Destruction or Mutilation of Warrant |
|
Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of any Warrant, and in case of loss, theft or destruction, of
indemnity, or security reasonably satisfactory to it, and upon reimbursement to the
Company of all reasonable expenses incidental thereto, and upon surrender and
cancellation of such Warrant, if mutilated, the Company will make and deliver a new
Warrant of like tenor and dated as of such cancellation, in lieu of such Warrant. |
12. |
Applicable
Law; Jurisdiction |
|
This
Warrant shall be governed by and construed in accordance with the laws of the State of
Israel as applicable to contracts between two residents of the State of Israel entered
into and to be performed entirely within the State of Israel. Any dispute arising under
or in relation to this Warrant shall be resolved exclusively in the competent court for
Tel Aviv-Jaffa district, and each of the parties hereby submits irrevocably to the
exclusive jurisdiction of such court. |
|
By:
Aviv Tsidon, CEO and Xxxxxx Xxxxxx, CFO |
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NOTICE OF EXERCISE
To:
BVR Systems (1998) Ltd.
16 Xxxxxxxxx Xxxxxx,
Xxxx Xx'xxxx
Xxxxxx
1. |
The
undersigned hereby elects to purchase _________ shares of Ordinary Shares of BVR Systems
(1998) Ltd., pursuant to the terms of the attached Warrant, (a) tenders herewith payment
of the purchase price for such shares in full. |
2. |
In
exercising this Warrant, the undersigned hereby confirms and acknowledges the
representation under Section 9 of the Warrant and that the shares of Ordinary Shares are
being acquired solely for the account of the undersigned and not as a nominee for any
other party, or for investment, and that the undersigned will not offer, sell or
otherwise dispose of any such shares of Ordinary Shares except under circumstances that
will not result in a violation of the Securities Act of 1933, as amended, or any state
securities laws. |
3. |
Please
issue a certificate representing said shares of Ordinary Shares in the name of:
_________________ _________________ _________________
_________________ |
4. |
Please
issue a new Warrant for the unexercised portion of the attached Warrant in the name of
the undersigned. |
|
|
|
|
|
|
_________________________ |
_________________________ |
(Date) |
(Print Name) |
|
|
_________________________ |
|
(Signature) |
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