AGREEMENT TO ISSUE WARRANTS
This agreement is entered into on October 12, 1999, by and
between Dotronix, Inc., a Minnesota corporation (the "Company"), and Xxxxxxx X.
Xxxxxx ("Xxxxxx").
Xxxxxx hereby commits to provide up to $1,000,000 in financing
to the Company in the manner and on the terms set forth in the Company's Annual
Report on Form 10-KSB for the fiscal year ended June 30, 1999. This commitment
shall expire on the earlier of September 30, 2000, or the sale of the Company.
The Company hereby agrees that for every $4 of financing that
is provided by Xxxxxx to the Company pursuant to the foregoing commitment, the
Company will issue to Xxxxxx a warrant to purchase one share of the Company's
common stock, $0.05 par value.
The exercise price per share under each such warrant shall be
the closing market price per share of the Company's common stock on the day that
Xxxxxx provides such financing to the Company. The exercise price shall be
payable only in cash.
Each such warrant shall become exercisable at the earliest
time permitted under applicable law and shall cease to be exercisable 10 years
after the date of issuance.
Such warrants shall be transferable only pursuant to the laws
of descent and distribution.
In witness whereof, the parties have executed this agreement
on the date first set forth above.
DOTRONIX, INC.
By /s/ Xxxxxx X. Xxxxx
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Its Chief Financial Officer
/s/ Xxxxxxx X. Xxxxxx
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Xxxxxxx X. Xxxxxx
