THE TRANSFER OF THIS WARRANT IS SUBJECT TO RESTRICTIONS
CONTAINED HEREIN. THIS WARRANT HAS BEEN ISSUED IN
RELIANCE UPON THE REPRESENTATION OF THE HOLDER THAT
IT HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TOWARDS THE RESALE OR OTHER
DISTRIBUTION THEREOF. NEITHER THIS WARRANT NOR
THE SHARES ISSUABLE UPON THE EXERCISE OF THIS
WARRANT, HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 OR ANY STATE SECURITIES LAWS.
SPACEDEV, INC.
Common Stock Purchase Warrant
August , 1998
---
THIS CERTIFIES that, pursuant to the signed and executed License Agreement dated
August 5, 1998 by and between ___________, (the "Holder") and SPACEDEV, INC., a
Colorado corporation (hereinafter called the "Corporation"), the Holder shall
receive Warrants entitling the Holder to purchase from the Corporation its
Common Stock under the following terms and conditions:
NUMBER OF SHARES: Holder shall be entitled to subscribe and
purchase the following shares of SpaceDev Common stock:
1. Upon the execution of License Agreement, the Holder
shall be entitled to purchase 25,000 shares.
2. For the next three anniversaries of the License
Agreement, the Holder shall entitled to purchase the
greater of (i) 25,000 shares or (ii) one share for
each One Hundred Twenty-five dollars ($125) in
revenue earned from the sale of the Technology as
referenced in the License Agreement.
3. For the fourth through the tenth anniversary of the
License Agreement, the Holder is entitled to purchase
25,000 shares per year.
STRIKE PRICE: Holder shall be entitled to exercise the
warrants at the strike price equal to fifty percent (50%) of
the average SpaceDev Common Stock closing price for the five
business days prior to the date the shares are to be
exercised.
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MAXIMUM LIMITATION: Under no event shall the Warrants entitle
the Holder, in cumulative, to purchase more than (i) three
million (3,000,000) shares; or (ii) six million dollars
($6,000,000) in Recognized Value. Recognized Value shall be
defined as the cumulative difference between the then current
full market value of the shares for which warrants have been
issued or exercised, as traded on the exchange on the date
that the warrants are first exercisable; and the price
actually paid for the stock (or if the warrants have not been
exercised, the price Summit would have paid for the stock on
the first day the warrants could be exercised), multiplied by
the number of shares for which warrants have been issued or
exercised.
SECTION 1
EXERCISE OF WARRANT
-------------------
The rights represented by this Warrant may be exercised by the Holder,
in whole at any time or from time to time in part, but not as to a fractional
share of Common Stock, by the completion of the purchase form attached hereto
and by the surrender of this Warrant (properly endorsed) at the office of the
Corporation as it may designate by notice in writing to the Holder hereof at the
address of the Holder appearing on the books of the Corporation, and by payment
to the Corporation of the Warrant Price in cash or by certified or official bank
check, for each share being purchased.
In the event of any exercise of the rights represented by this Warrant,
a certificate or certificates for the shares of Common Stock so purchased,
registered in the name of the Holder, or its nominee or other party designated
in the purchase form by the Holder hereof, shall be delivered to the Holder
within thirty (30) business days after the date in which the rights represented
by this Warrant shall have been so exercised; and, unless this Warrant has
expired or has been exercised in full, a new Warrant representing the number of
shares (except a remaining fractional share), if any, with respect to which this
Warrant shall not then have been exercised shall also be issued to the Holder
within such time.
The person in whose name any certificate for shares of Common Stock is
issued upon exercise of this Warrant shall for all purposes be deemed to have
become the Holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Warrant Price, except that, if the date of such
surrender and payment is a date on which the stock transfer books of the
Corporation are closed, such person shall be deemed to have become the Holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open. No fractional shares shall be issued upon
exercise of this Warrant and no payment or adjustment shall be made upon any
exercise on account of any cash dividends on the Common Stock issued upon such
exercise. If any fractional interest in a share of Common Stock would, except
for the provision of this Section 1, be delivered upon such exercise, the
Corporation, in lieu of delivery of a fractional share thereof, shall pay to the
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Holder an amount in cash equal to the current market price of such fractional
share as determined in good faith by the Board of Directors of the Corporation
(the "Board").
SECTION 2
STOCK SPLITS, CONSOLIDATION, MERGER AND SALE
--------------------------------------------
In the event the outstanding shares of Common Stock shall be split,
combined or consolidated, by dividend, reclassification or otherwise, into a
greater or lesser number of shares of Common Stock, the Warrant Price in effect
immediately prior to such combination or consolidation and the number of shares
purchasable under this Warrant shall, concurrently with the effectiveness of
such combination or consolidation, be proportionately adjusted.
If there shall be effected any consolidation or merger of the
Corporation with another corporation, or a sale of all or substantially all of
the Corporation's assets to another corporation, and if the holders of Common
Stock shall be entitled pursuant to the terms of any such transaction to receive
stock, securities or assets with respect to or in exchange for Common Stock,
then, as a condition of such consolidation, merger or sale, lawful and adequate
provisions shall be made whereby the Holder of this Warrant shall thereafter
have the right to receive, upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock immediately
theretofore receivable upon the exercise of such Warrant, such shares of stock,
securities or assets as may be issuable or payable with respect to or in
exchange for a number of outstanding shares of such Common Stock equal to the
number of shares of such Common Stock immediately theretofore so receivable had
such consolidation, merger or sale not taken place, and in any such case
appropriate provisions shall be made with respect to the rights and interests of
the Holder to the end that the provisions hereof shall thereafter be applicable,
as nearly as may be, in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise of this Warrant.
(a) STOCK TO BE RESERVED. The Corporation will at all times reserve and
keep available out of its authorized Common Stock, solely for the
purpose of issue upon the exercise of this Warrant as herein provided,
such number of shares of Common Stock as shall then be issuable upon
the exercise of this Warrant. The Corporation shall from time to time
in accordance with applicable law increase the authorized amount of its
Common Stock if at any time the number of shares of Common Stock
remaining unissued and available for issuance shall not be sufficient
to permit exercise of this Warrant. The Corporation covenants that all
shares of Common Stock which shall be so issued shall be duly and
validly issued and fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof, and,
without limiting the generality of the foregoing, the Corporation will
take all such action as may be necessary to assure that all such shares
of Common Stock may be so issued without violation of any applicable
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law or regulation, or of any requirements of any national securities
exchange upon which the Common Stock of the Corporation may be listed.
(b) ISSUE TAX. The issuance of certificates for shares of Common Stock
upon exercise of this Warrant shall be made without deduction to the
Holders of this Warrant for any issuance tax in respect thereof
provided that the Corporation shall not be required to pay any tax
which may be payable in respect of any transfer involved in the
issuance and delivery of any certificate in a name other than that of
Holder of this Warrant.
(c) CLOSING OF BOOKS. The Corporation will at no time close its
transfer books against the transfer of the shares of Common Stock
issued or issuable upon the exercise of this Warrant in any manner
which interferes with the timely exercise of this Warrant.
SECTION 3
NOTICES OF RECORD DATES
-----------------------
In the event of:
(1) any taking by the Corporation of a record of the Holders of
any class of securities for the purpose of determining the
Holders thereof who are entitled to receive any dividend or
other distribution (other than cash dividends out of earned
surplus), or any right to subscribe for, purchase or otherwise
acquire any shares of stock of any class or any other
securities or property, or to receive any other right;
(2) any capital reorganization of the Corporation, any
reclassification, or recapitalization of the capital stock of
the Corporation, or any transfer of all or substantially all
the assets of the Corporation to, or consolidation or merger
of the Corporation with or into any other corporation; or
(3) any voluntary or involuntary dissolution, liquidation or
winding-up of the Corporation;
then and in each such event the Corporation will give notice to the Holder of
this Warrant specifying (i) the date on which any such record is to be taken for
the purpose of such dividend, distribution or right and stating the amount and
character of such dividend, distribution or right, and (ii) the date on which
any such reorganization, reclassification, recapitalization, transfer,
consolidation, merger, dissolution, liquidation or winding-up is to take place,
and the time, if any is to be fixed, as of which the Holders of record of Common
Stock will be entitled to exchange their shares of Common Stock for securities
or other property deliverable upon such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or
winding-up. Such notice shall be given at least 10 days and not more than 90
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days prior to the date therein specified, and such notice shall state that the
action in question or the record date is subject to the effectiveness of a
registration statement under the Securities Act of 1933 or to a favorable vote
of shareholders, if either is required.
SECTION 4
NO SHAREHOLDER RIGHTS OR LIABILITIES
------------------------------------
This Warrant shall not entitle the Holder hereof to any voting rights
or other rights as a shareholder of the Corporation. No provision hereof, in the
absence of affirmative action by the Holder hereof to purchase shares of Common
Stock, and no mere enumeration hereon of the rights or privileges of the Holder
hereof, shall give rise to any liability of such Holder for the Warrant Price or
as a shareholder of the Corporation, whether such liability is asserted by the
Corporation or by creditors of the Corporation.
SECTION 5
REPRESENTATIONS OF HOLDER
-------------------------
The Holder hereby represents and acknowledges to the Corporation that:
(1) this Warrant, the Common Stock issuable upon exercise of this
Warrant, and any securities issued with respect to either of
them by way of a stock dividend or stock split or in
connection with a recapitalization, merger, consolidation or
other reorganization will be "restricted securities" as such
term is used in the rules and regulations under the Securities
Act and that such securities have not been and will not be
registered under the Securities Act or any state securities
law, and that such securities must be held indefinitely unless
registration is effected or transfer can be made pursuant to
appropriate exemptions;
(2) it has read, and fully understands, the terms of this Warrant
set forth on its face and the attachment hereto, including the
restrictions on transfer contained herein;
(3) it has either a pre-existing personal or business relationship
with the Corporation or one of its officers, directors or
controlling persons;
(4) it is receiving this Warrant for investment and for its own
account and not with a view to or for sale in connection with
any distribution of this Warrant or the Common Stock of the
Corporation issuable upon exercise of this Warrant, and it has
no intention of selling such securities in a public
distribution in violation of the federal securities laws or
any applicable state securities laws; provided that nothing
contained herein will prevent Holder from transferring such
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securities in compliance with the terms of this Warrant and
the applicable federal and state securities laws;
(5) it is an "accredited investor" within the meaning of paragraph
(a) of Rule 501 of Regulation D promulgated by the Securities
and Exchange Commission and an "excluded purchaser" within the
meaning of Section 25102 of the California Corporate
Securities Law of 1968;
(6) it has been afforded access to the Corporation's financial and
business information through disclosure meetings or otherwise,
and has had an opportunity to ask the Corporation's officers
questions regarding the Corporation and its financial and
business condition and to get independent advice from a
professional or investment advisor concerning the investment;
and it will not exercise the Warrant unless the same is true
with respect to its decision to exercise;
(7) it has the knowledge and experience in financial and business
matters to be capable of evaluating the merits and risks of
this investment and to protect its own interest;
(8) it acknowledges that an investment in the Corporation and this
Warrant involves a high degree of risk; and
(9) the Warrant, or any substitution warrant, issued to Holder (or
his assigns) will be imprinted with a legend in substantially
the form provided below:
"The transfer of this Warrant is subject to
restrictions contained herein. This Warrant has been
issued in reliance upon the representation of the
Holder that it has been acquired for investment
purposes and not with a view towards the resale or
other distribution thereof. Neither this Warrant nor
the shares issuable upon the exercise of this Warrant
have been registered under the Securities Act of
1933."
(10) the Corporation may affix the following legend (in addition to
any other legend(s), if any, required by applicable state
corporate and/or securities laws) to certificates for shares
of Common Stock (or other securities) issued upon exercise of
this Warrant ("Warrant Shares"):
"The securities represented by this certificate have
not been registered under the Securities Act of 1933
as amended or any state securities law, and may not
be sold, transferred or assigned in the absence of an
effective registration statement or an opinion of the
company's counsel that registration is not required
under said act."
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SECTION 6
NOTICE OF PROPOSED TRANSFERS
----------------------------
The Holder of this Warrant, by acceptance hereof, agrees to comply in all
respects with the provisions of this Section 6. Prior to any proposed transfer
of this Warrant or any Warrant Shares, unless there is in effect a registration
statement under the Securities Act of 1933, as amended (the "Securities Act")
covering the proposed transfer, the Holder of such securities shall give written
notice to the Corporation of such Holder's intention to effect such transfer.
Each such notice shall describe the manner and circumstances of the proposed
transfer in sufficient detail, and shall be accompanied (except in transactions
in compliance with Rule 144) by either (i) a written opinion of legal counsel
who shall be reasonably satisfactory to the Corporation addressed to the
Corporation and reasonably satisfactory in form and substance to the
Corporation's counsel, to the effect that the proposed transfer of the Warrant
and/or Warrant Shares may be effected without registration under the Securities
Act, or (ii) a "no action" letter from the U.S. Securities and Exchange
Commission (the "Commission") to the effect that the transfer of such securities
without registration will not result in a recommendation by the staff of the
Commission that enforcement action be taken with respect thereto, whereupon the
Holder of such securities shall be entitled to transfer such securities in
accordance with the terms of the notice delivered by the Holder to the
Corporation. Each new certificate evidencing the Warrant and/or Warrant Shares
so transferred shall bear the appropriate restrictive legends set forth in
Section 5 above, except that such certificate shall not bear such restrictive
legend if, in the opinion of counsel for the Corporation, such legend is not
required in order to establish or assist in compliance with any provisions of
the Securities Act or any applicable state securities laws.
SECTION 7
LOST, STOLEN, MUTILATED OR DESTROYED WARRANT
--------------------------------------------
If this Warrant is lost, stolen, mutilated or destroyed, the Corporation may, on
such terms as to indemnity or otherwise as it may in its discretion reasonably
impose (which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination and tenor as the Warrant so
lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an
original contractual obligation of the Corporation, whether or not the allegedly
lost, stolen, mutilated or destroyed. The Warrant shall be at any time
enforceable by anyone.
SECTION 8
PRESENTMENT
-----------
Prior to due presentment for registration of transfer of this Warrant, the
Corporation may deem and treat the Holder as the absolute owner of the Warrant,
notwithstanding any notation of ownership or other writing thereon, for the
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purpose of any exercise thereof and for all other purposes, and the Corporation
shall not be affected by any notice to the contrary.
SECTION 9
NOTICE
------
Notice or demand pursuant to this Warrant shall be sufficiently given or made,
if sent by first-class mail, postage prepaid, addressed, if to the Holder of
this Warrant, to the Holder at has last known address as it shall appear in the
records of the Corporation, and if to the Corporation, at ▇▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: SpaceDev Corporate
Counsel. The Corporation may alter the address to which communications are to be
sent by giving notice of such change of address in conformity with the
provisions of this Section 9 for the giving of notice.
SECTION 10
GOVERNING LAW
-------------
The validity, interpretation and performance of this Warrant shall be governed
by the laws of the State of California without regard to principles of conflicts
of laws.
SECTION 11
SUCCESSORS, ASSIGNS
-------------------
Subject to the restrictions on transfer by Holder set forth in Section 6 hereof,
all the terms and provisions of the Warrant shall be binding upon and inure to
the benefit of and be enforceable by the respective successors and assigns of
the parties hereto.
SECTION 12
SEVERABILITY
------------
Should any part but not the whole of this Warrant for any reason be declared
invalid, such decision shall not affect the validity of any remaining portion,
which remaining portion shall remain in force and effect as if this Warrant had
been executed with the invalid portion thereof eliminated, and it is hereby
declared the intention of the parties hereto that they would have executed the
remaining portion of this Warrant without including therein any such part which
may, for any reason, be hereafter declared invalid.
SECTION 13
GENDER AND NUMBER
-----------------
In this Warrant, the masculine, feminine and neuter genders and the singular and
plural shall be deemed to include one another as appropriate.
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SECTION 14
CAPTIONS
--------
The descriptive headings of the various Sections or parts of this Warrant are
for convenience only and shall not affect the meaning or construction of any of
the provisions hereof.
IN WITNESS WHEREOF, the Corporation has caused this Warrant to be duly
executed and delivered on and as of the day and year first above written by one
of its officers thereunto duly authorized.
Dated: August ,1998 SPACEDEV, INC.
------ a Colorado corporation
By:
----------------------------------
▇▇▇▇▇ ▇▇▇▇▇▇, President
The undersigned Holder agrees and accepts this Warrant and acknowledges
that he/she/it has read and confirms each of the representations contained in
Section 5.
By:
----------------------------------
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