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EXHIBIT 10.17
THIS STOCK PURCHASE WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE
EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, NOR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION UNDER SAID ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR AN OPINION SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.
FT. ▇▇▇▇▇▇, FLORIDA
GRANTED: AS OF DECEMBER 19, 1996
THIS STOCK PURCHASE WARRANT EXPIRES
IF NOT EXERCISED ON OR BEFORE
5:00 P.M., MIAMI TIME, DECEMBER 18, 1999
Stock Purchase Warrant
To Purchase 100,000 Shares of Common Stock
par value $.001 per share
of
PRO TECH COMMUNICATIONS, INC.
THIS IS TO CERTIFY that ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ ("▇▇▇▇▇▇▇▇▇▇▇") is
entitled upon the due exercise hereof at any time during the Exercise Period
(as hereinafter defined) to purchase from PRO TECH COMMUNICATIONS, INC. (the
"Company"), up to one hundred thousand (100,000) duly authorized, validly
issued, fully paid and non-assessable shares of common stock, par value $.001
per share, at a price of One Dollar and Fifty Cents ($1.50) (the "Exercise
Price") (subject to adjustment as provided herein) for each share of such
common stock so purchased and to exercise the other rights, powers and
privileges hereinafter provided, all on the terms and conditions and pursuant
to the provisions hereinafter set forth.
ARTICLE I
DEFINITIONS
The terms defined in this Article I, whenever used in this Stock
Purchase Warrant, shall have the respective meanings hereinafter specified.
Whenever used in this Stock Purchase Warrant, any noun or pronoun shall be
deemed to include both the singular and plural and to cover all genders.
"Common Stock" means the Company's authorized common stock, par value
$.001 per share.
"Company" means Pro Tech Communications, Inc., and any successor
corporation.
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"Exercise Period" means the period commencing on December 19, 1996 and
terminating at 5:00 p.m., Miami time, on December 18, 1999, or such time as
otherwise provided herein.
"Exercise Price" means One Dollar and Fifty Cents ($1.50) per share,
as such price may be adjusted from time to time pursuant to Article V.
"▇▇▇▇▇▇▇▇▇▇▇" means ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇.
"Person" means an individual, a corporation, a joint venture, a
general or limited partnership, a trust, an unincorporated organization or a
government or any agency or political subdivision thereof.
"Securities Act" means the Securities Act of 1933, as amended, or any
similar federal statute, and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder, all as the same shall be in effect
from time to time.
"Stock Purchase Warrant(s)" means this Stock Purchase Warrant.
"Warrant Shares" means shares of Common Stock issued upon the exercise
of this Stock Purchase Warrant.
ARTICLE II
NUMBER OF SHARES; EXERCISE OF STOCK PURCHASE WARRANT
2.1. Number of Shares. This Stock Purchase Warrant shall
entitle ▇▇▇▇▇▇▇▇▇▇▇ to subscribe to and purchase up to one hundred thousand
(100,000) shares of Common Stock.
2.2. Right to Exercise. Subject to the provisions contained in
this Stock Purchase Warrant and upon compliance with the conditions of this
Article II, ▇▇▇▇▇▇▇▇▇▇▇ shall have the right at any time and from time to time
during the Exercise Period to exercise this Stock Purchase Warrant in whole or
in portions.
2.3. Notice of Exercise; Issuance of Common Stock. To exercise
this Stock Purchase Warrant, ▇▇▇▇▇▇▇▇▇▇▇ shall deliver to the Company (a) a
Notice of Exercise substantially in the form attached hereto, duly executed by
▇▇▇▇▇▇▇▇▇▇▇, (b) an amount equal to the aggregate Exercise Price for the shares
of Common Stock purchased upon due exercise of this Stock Purchase Warrant, (c)
this Stock Purchase Warrant and (d) a certificate executed by ▇▇▇▇▇▇▇▇▇▇▇
certifying that attached thereto is a true and correct copy of the resolutions
or authorizations of the appropriate directors, owners or otherwise, approving
and authorizing the exercise of this Stock Purchase Warrant and the purchase of
the Warrant Shares.
Payment of the Exercise Price shall be made, at the option
of ▇▇▇▇▇▇▇▇▇▇▇, (i) by wire transfer of immediately available funds to an
account in a bank located in the United States designated in writing for such
purpose by the Company or (ii) by certified or official bank check payable to
the order of the Company and drawn on a member of the Chicago or
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New York Clearing House. Upon receipt thereof, the Company shall, as promptly
as practicable, and in any event within seven (7) business days thereafter,
cause to be issued and delivered to ▇▇▇▇▇▇▇▇▇▇▇, a certificate representing the
aggregate number of duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock purchased pursuant to the exercise of
this Stock Purchase Warrant registered in the name of ▇▇▇▇▇▇▇▇▇▇▇. The
certificates representing such Warrant Shares shall bear the following legend:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF
WITHOUT REGISTRATION UNDER SUCH ACT OR AN OPINION OF COUNSEL,
REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT
REQUIRED.
Notwithstanding anything contained herein to the contrary,
this Stock Purchase Warrant may not be exercised if the issuance of the shares
of Common Stock upon such exercise would constitute a violation of any
applicable federal or state securities or other applicable laws or regulations.
As a condition to the exercise of this Stock Purchase Warrant, the Company may
require ▇▇▇▇▇▇▇▇▇▇▇ to make such representations and agree to such covenants as
may be required by any applicable law or regulation.
This Stock Purchase Warrant shall be deemed to have been
exercised and such certificate shall be deemed to have been issued, and
▇▇▇▇▇▇▇▇▇▇▇ shall be deemed to have become the holder of record of such Warrant
Shares for all purposes as of the close of business on the date the Notice of
Exercise, together with payment and a certificate as herein provided and this
Stock Purchase Warrant, are received by the Company.
2.4. Balance of Stock Purchase Warrant Certificate. Upon
exercise of this Stock Purchase Warrant in part rather than in whole, the
Company shall execute and deliver to ▇▇▇▇▇▇▇▇▇▇▇ a new Stock Purchase Warrant
certificate of like tenor evidencing the unexercised portion of the Stock
Purchase Warrant and otherwise in all respects identical with this Stock
Purchase Warrant.
ARTICLE III
REGISTRATION
3.1. Registration; Ownership. The Company will keep a register
in which, subject to such reasonable regulations as it may prescribe, the
Company will provide for the registration of ownership of this Stock Purchase
Warrant. The Company will not at any time, except upon the dissolution,
liquidation or winding up of the Company, close such register so as to result
in preventing or delaying the exercise of this Stock Purchase Warrant.
3.2. Replacement of Stock Purchase Warrant. Upon receipt by the
Company of evidence satisfactory to it, in the exercise of reasonable
discretion, of the ownership of and the loss, theft, destruction or mutilation
of any Stock Purchase Warrant and, in case of loss, theft
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or destruction, the written agreement of ▇▇▇▇▇▇▇▇▇▇▇ to indemnify the Company
against any resulting loss or expense or in case of mutilation upon surrender
and cancellation of such Stock Purchase Warrant, the Company will execute and
deliver in lieu thereof, a new Stock Purchase Warrant of like tenor.
ARTICLE IV
NO ASSIGNMENT OR TRANSFER
▇▇▇▇▇▇▇▇▇▇▇ shall not assign or transfer any of its rights under this
Stock Purchase Warrant. Any purported assignment or transfer of this Stock
Purchase Warrant in violation of this Article IV shall be void.
ARTICLE V
ADJUSTMENT OF SHARES
In the event of any increase or decrease in the number of shares of
Common Stock outstanding by reason of a stock split or reverse stock split, the
number of shares of Common Stock issuable upon the exercise of this Stock
Purchase Warrant and the Exercise Price shall be appropriately adjusted. The
number of shares of Common Stock issuable upon the exercise of this Stock
Purchase Warrant after such stock split or reverse stock split shall be equal
to an amount that ▇▇▇▇▇▇▇▇▇▇▇ would have been entitled to, had the Stock
Purchase Warrant been exercised immediately prior to the stock split or reverse
stock split.
In the event that the Company shall at any time increase its
outstanding shares of Common Stock into a greater number of shares of Common
Stock by reason of a stock split, the Exercise Price in effect immediately
prior to such increase shall be proportionately reduced, and, conversely, in
case the outstanding shares of Common Stock shall be reduced into a smaller
number of shares of Common Stock by reason of a reverse stock split, the
Exercise Price in effect immediately prior to such reduction shall be
proportionately increased, calculated by dividing (i) the product of the total
number of shares of Common Stock outstanding prior to the stock split or
reverse stock split, multiplied by the Exercise Price, by (ii) the total number
of shares of Common Stock outstanding after the stock split or reverse stock
split.
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ARTICLE VI
REGISTRATION RIGHTS
The Company grants ▇▇▇▇▇▇▇▇▇▇▇ the following rights to have the
Warrant Shares registered under the Securities Act:
6.1 Piggy-back Registration Rights. If, at any time during the
Exercise Period, the Company proposes to register any class of equity security
on any form for the general registration of securities under the Securities Act
(other than a registration form relating to a registration of a stock option,
stock purchase or compensation or incentive plan or of stock issued or issuable
pursuant to any such plan, or a dividend investment plan, a registration of
stock proposed to be issued in exchange for securities or assets of, or in
connection with the merger or consolidation with, another corporation or a
registration of stock proposed to be issued in exchange for other securities of
the Company), then the Company shall give prompt written notice thereof to
▇▇▇▇▇▇▇▇▇▇▇ and, upon the written request of ▇▇▇▇▇▇▇▇▇▇▇ made within ten (10)
days after the receipt of such notice, the Company shall use its best efforts
to effect as part of such registration the registration under the Securities
Act of that number of the Warrant Shares which ▇▇▇▇▇▇▇▇▇▇▇ requests the Company
to register, provided that the managing underwriter of the Company's public
offering, if any, shall be of the opinion that the inclusion in such
registration of such number of Warrant Shares will not interfere with the
successful marketing of all of the Company's securities being registered. If a
managing underwriting requests ▇▇▇▇▇▇▇▇▇▇▇ to reduce in whole or in part the
number of Warrant Shares, if any, sought to be registered by ▇▇▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇ shall comply with the request of the managing underwriter. In
connection with any registration pursuant to this Section 6.1, ▇▇▇▇▇▇▇▇▇▇▇
shall provide the Company with such information regarding himself and the
distribution of the Warrant Shares as the Company and the managing underwriter,
if any, shall reasonably request. The Company shall pay all costs and expenses
incident to the Company's registration of ▇▇▇▇▇▇▇▇▇▇▇'▇ Warrant Shares pursuant
to this Section 6.1, except the attorneys' fees and expenses of ▇▇▇▇▇▇▇▇▇▇▇.
The Company shall not be obligated to effect registration under the Securities
Act pursuant to this Section 6.1 on more than one occasion. Within five (5)
business days after the Securities and Exchange Commission (the "Commission")
declares the Company's registration statement to be effective, ▇▇▇▇▇▇▇▇▇▇▇
shall exercise this Stock Purchase Warrant in full and shall pay to the Company
the full Exercise Price therefor.
6.2 Demand Registration Rights. During the Exercise Period,
▇▇▇▇▇▇▇▇▇▇▇ shall have the following demand registration rights, subject to the
conditions contained in this Section 6.2:
(a) Registration Request. At any time during the
Exercise Period and as soon as reasonably practicable upon the written request
of ▇▇▇▇▇▇▇▇▇▇▇, the Company shall proceed to file with the Commission a
registration statement under the Securities Act on any appropriate form as the
Company shall select covering the Warrant Shares. The Company shall use its
best efforts to cause such registration statement to become effective as soon
as reasonably practicable following such request; provided, however, that the
Company shall not be required (i) to file a registration statement on more than
one occasion or (ii) to file any
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registration statement during any period of time (not to exceed 180 days) when
the Company is contemplating an underwritten offering of its shares of equity
securities and, in the judgment of the managing underwriter thereof, such
filing would have a material adverse effect on the contemplated offering.
(b) Information and Costs. ▇▇▇▇▇▇▇▇▇▇▇ shall provide
the Company with such information with respect to the Warrant Shares to be
sold, the plans for the proposed distribution thereof, and such other
information as shall in the opinion of counsel for the Company be necessary to
enable the Company to include in such registration statement (or any amendment
or supplement thereto) all material facts required to be disclosed with respect
to ▇▇▇▇▇▇▇▇▇▇▇. The Company shall bear the costs of such registration,
including, but not limited to, all registration and filing fees, and printing
expenses. Notwithstanding the foregoing, ▇▇▇▇▇▇▇▇▇▇▇ shall pay the fees and
disbursements of his own counsel and any underwriting fees and selling
commissions applicable to the Warrant Shares sold by ▇▇▇▇▇▇▇▇▇▇▇.
(c) Financial Statements. The Company shall not be
required to furnish any audited financial statements at the request of
▇▇▇▇▇▇▇▇▇▇▇ other than those statements customarily prepared at the end of its
fiscal year, unless (i) ▇▇▇▇▇▇▇▇▇▇▇ shall agree to reimburse the Company for
the out-of-pocket expenses incurred by the Company in the preparation of such
other audited financial statements or (ii) such other audited financial
statements are to be required by the Commission as a condition to ordering a
registration statement effective under the Securities Act.
(d) The Company's Obligation to Maintain the
Registration Statement Current. The Company shall be
required to maintain the registration statement covering the Warrant Shares
current until the earlier to occur of (i) the sale of all of the Warrant Shares
or (ii) twelve (12) months from the date that the registration statement
covering the Warrant Shares was declared effective by the Commission.
(e) Exercise of Warrant Shares. Within five (5)
business days after the registration statement covering the Warrant Shares is
declared effective by the Commission, ▇▇▇▇▇▇▇▇▇▇▇ shall exercise this Stock
Purchase Warrant in full and shall pay the full Exercise Price to the Company
therefor.
ARTICLE VII
MISCELLANEOUS
7.1. Nonwaiver. No course of dealing or any delay or failure to
exercise any right hereunder on the part of ▇▇▇▇▇▇▇▇▇▇▇ or the Company shall
operate as a waiver of such right or otherwise prejudice the rights, powers or
remedies of ▇▇▇▇▇▇▇▇▇▇▇ or the Company.
7.2. Notice Generally. Any notice, demand or delivery to be
made pursuant to or in connection with this Stock Purchase Warrant shall be
sufficiently given or made if sent by first class mail, postage prepaid,
addressed to (a) ▇▇▇▇▇▇▇▇▇▇▇ at its last known address appearing on the books
or register of the Company maintained for such purpose or (b) the
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Company at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇. ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇. ▇▇▇▇▇▇▇▇▇▇▇
and the Company may each designate a different address by written notice to the
other pursuant to this Section 7.2.
7.3. Payment of Certain Expenses. Except as otherwise provided
in this Stock Purchase Warrant, the Company and ▇▇▇▇▇▇▇▇▇▇▇ shall each pay
their respective expenses in connection with, and all taxes and other
governmental charges that may be imposed in respect of, the issue, sale and
delivery of the shares of Common Stock issuable upon the exercise of this Stock
Purchase Warrant.
7.4. Amendment. This Stock Purchase Warrant may not be modified
or amended except by written agreement duly executed by the Company and
▇▇▇▇▇▇▇▇▇▇▇.
7.5. Headings. The headings of the Articles and Sections of
this Stock Purchase Warrant are for the convenience of reference only and shall
not, for any purpose, be deemed a part of this Stock Purchase Warrant.
7.6 Governing Law. This Stock Purchase Warrant shall be
governed by the laws of the State of Florida without reference to the conflict
of laws principles thereof.
Date of Grant: As of December 19, 1996
Pro Tech Communications, Inc.
By:/s/ ▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇▇ ▇▇▇▇▇▇
Title: Chief Executive Officer
The undersigned agrees to comply with the terms and conditions contained
herein.
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇
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Date
Pro Tech Communications, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇. ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Re: Exercise of Stock Purchase Warrant
Dear Sir:
Please be advised that pursuant to the Stock Purchase Warrant
Agreement ("Agreement"), granted as of December 19, 1996, by Pro Tech
Communications, Inc. (the "Company") to the undersigned, the undersigned hereby
exercises the Stock Purchase Warrant in the amount of ______________ shares of
common stock of the Company and herewith tenders its cashier's check or
certified check to the Company in the amount of _______________________________
($__________) in payment for such shares of common stock. Capitalized terms
not otherwise defined herein are defined as set forth in the Agreement.
The undersigned requests _______ stock certificates for such shares
issued in the name of ______________________ whose address is _________________
and whose social security number is __________________.
The undersigned hereby acknowledges, warrants and represents the
following:
(1) The undersigned's acknowledgements, representations,
warranties and agreements contained in the Agreement are true, complete and
accurate as of the date of this letter.
(2) The Stock Purchase Warrant is presently exercisable and as
such, has vested and has not expired.
(3) The undersigned is presently and has been in full
compliance with all the terms, conditions and provisions of the Agreement.
Sincerely,
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