EXHIBIT
4.10
NEITHER THIS SECURITY NOR THE SECURITY
INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH
THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE
OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
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#W-2008-_____
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__________Warrants
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Void after 5:00 p.m., Eastern Standard
Time on May 14, 2013
COMMON STOCK PURCHASE
WARRANT
OF
BREKFORD INTERNATIONAL CORP.
Brekford International Corp., a Delaware
corporation (the “ Company ”), hereby certifies
that, for value received, Birch Systems, LLC, a Georgia limited
liability corporation (“ Birch ” or “
Warrant Holder ” and together with other holders
hereunder as a result of permitted transfers hereof, collectively,
“ Holders ”) is the owner of the number of
common stock purchase warrants (“ Warrants ”)
specified above, each of which entitles the Holder to purchase, at
any time during the period commencing on the Commencement Date (as
defined herein) and ending on the Expiration Date (as defined
herein), one fully paid and non-assessable share of common stock,
par value $0.0001 per share (“ Common Stock ”),
of the Company at a purchase price equal to the Exercise Price of
$____ per share in lawful money of the United States of America in
cash, subject to adjustment as hereinafter provided.
1.
WARRANT; EXERCISE PRICE
.
1.1
Each Warrant shall entitle the Warrant
Holder the right to purchase one share of Common Stock of the
Company (individually, a “ Warrant Share ”
severally, the “ Warrant Shares ”).
1.2
The purchase price payable upon exercise
of each Warrant (“ Exercise Price ”) shall be
$_____ per Warrant Share. The Exercise Price and number of Warrant
Shares purchasable pursuant to each Warrant are subject to
adjustment as provided in Section 8.
2.
EXERCISE OF WARRANT; EXPIRATION
DATE .
2.1
This Warrant is exercisable at any time
and from time to time commencing the date hereof (“
Commencement Date ”) and ending at 5:00 p.m., Eastern
Standard Time on May 14, 2013, or if such date shall in the State
of Delaware be a holiday or a day on which banks are authorized to
close, then 5:00 p.m., Eastern Standard Time the next following day
which in the State of Delaware is not a holiday or a day on which
banks are authorized to close (the “ Expiration Date
”), in whole or from time to time in part, at the option of
the Warrant Holder, upon surrender of this Warrant to the Company
together with a duly completed Notice of Exercise in the form
attached hereto and payment of an amount equal to the then
applicable Exercise Price multiplied by the number of Warrant
Shares then being purchased upon such exercise.
2.2
Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of
business on the day on which this Warrant shall have been
surrendered to the Company as provided in Section 2.1. At
such time, the person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such
exercise as provided in subsection 2.3 below shall be deemed to
have become the holder or holders of record of the Warrant Shares
represented by such certificates.
2.3
Within three business days after the
exercise of the purchase right represented by this Warrant, the
Company at its expense will use its best efforts to cause to be
issued in the name of, and delivered to, the Warrant Holder, or,
subject to the terms and conditions hereof, to such other
individual or entity as such Warrant Holder (upon payment by such
Warrant Holder of any applicable transfer taxes) may
direct:
(a)
a certificate or certificates for the
number of full Warrant Shares to which such Warrant Holder shall be
entitled upon such exercise plus, in lieu of any fractional share
to which such Warrant Holder would otherwise be entitled, cash in
an amount determined pursuant to Section 2.4 hereof, and
(b)
in case such exercise is in part only, a
new Warrant or Warrants (dated the date hereof) of like tenor,
stating on the face or faces thereof the number of shares currently
stated on the face of this Warrant minus the number of such shares
purchased by the Warrant Holder upon such exercise as provided in
subsection 2.1 ( in each case prior to any adjustments made thereto
pursuant to the provisions of this Warrant).
2.4
The Company shall not be required upon
the exercise of this Warrant to issue any fractional shares, but
shall make an adjustment thereof in cash on the basis of the
“last sale price” (as defined below) of the Company's
Common Stock on the trading day immediately prior to the date of
exercise. For purposes of Sections 2.1 and 2.4, “last
sale price” shall mean (i) if the Common Stock is listed on
an Exchange or quoted on the Nasdaq markets or NASD OTC
Bulletin Board (or successor such as the
Bulletin Board Exchange), the last sale price of the Common Stock
in the principal trading market for the Common Stock as reported by
the Exchange, Nasdaq or the NASD, as the case may be; (ii) if the
Common Stock is not listed on an Exchange or quoted on the Nasdaq
markets, or the NASD OTC Bulletin Board (or successor such as the
Bulletin Board Exchange), but is traded in the over-the-counter
market, the closing bid price for the Common Stock on the last
trading day preceding the date in question for which such
quotations are reported by the Pink OTC Markets Inc. or similar
publisher of such quotations; and (iii) if the fair market value of
the Common Stock cannot be determined pursuant to clause (i) or
(ii) above, such price as the Board of Directors of the Company
shall determine, in good faith, in the Board’s sole
discretion.
3.
REGISTRATION AND TRANSFER ON COMPANY
BOOKS .
3.1
The Company (or an agent of the Company)
will maintain a register containing the names and addresses of the
Warrant Holders. Any Warrant Holder may change its, his or
her address as shown on the warrant register by written notice to
the Company requesting such change.
3.2
The Company shall register upon its books
any transfer of a Warrant upon surrender of same as provided in
Section 5.
4.
RESERVATION OF SHARES
. The Company will at all times
reserve and keep available, solely for issuance and delivery upon
the exercise of this Warrant, such Warrant Shares and other stock,
securities and property, as from time to time shall be issuable
upon the exercise of this Warrant. As long as the Warrant
shall be outstanding, the Company shall use its commercially
reasonable efforts to cause all Warrant Shares issuable upon
exercise of the Warrants to be listed (subject to official notice
of issuance) on each Exchange (or, if applicable on Nasdaq, NASD
OTC Bulletin Board or Pink OTC Markets Inc. or any successor
electronic quotation service and trading market) on which the
Common Stock is then listed and/or quoted, if any.
5.
EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS
OR MUTILATION OF WARRANTS . This Warrant is exchangeable, without
expense, at the option of the Warrant Holder, upon presentation and
surrender hereof to the Company for other warrants of different
denominations entitling the holder thereof to purchase in the
aggregate the same number of shares of Common Stock purchasable
hereunder. Subject to the terms of Section 6, upon surrender
of this Warrant to the Company at its principal office or at the
office of its transfer agent, if any, with the Assignment Form
annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and
deliver a new Warrant in the name of the assignee named in such
instrument of assignment and this Warrant shall be promptly
canceled. This Warrant may be divided or combined with other
warrants which carry the same rights upon presentation hereof at
the principal office of the Company together with a written notice
specifying the names and denominations in which new Warrants are to
be issued and signed by the Warrant Holder hereof. The term
“Warrant” as used herein includes any Warrants into
which this Warrant may be divided or exchanged. Upon receipt
by the Company of reasonable evidence of the ownership of and the
loss, theft, destruction or mutilation of this Warrant and, in the
case of loss, theft or destruction, of indemnity reasonably
satisfactory to the
Company, or, in the case of mutilation,
upon surrender and cancellation of the mutilated Warrant, the
Company shall execute and deliver in lieu thereof a new Warrant of
like tenor and date representing an equal number of
Warrants.
6.
LIMITATION ON EXERCISE AND
SALES .
(a)
Each holder of this Warrant acknowledges
that this Warrant and the Warrant Shares have not been registered
under the Securities Act, as of the date of issuance hereof.
This Warrant only may be transferred to a transferee who
certifies in writing to the Warrant Holder and to the Company that
such transferee is an “accredited investor” within the
meaning of Rule 501 of Regulation D promulgated by the Commission
under the Securities Act. The Company shall be under no obligation
to issue the shares covered by such exercise unless and until the
Warrant Holder shall have executed the form of exercise annexed
hereto that states that at the time of such exercise that it is
then an “accredited investor” within the meaning of
Rule 501 of Regulation D, is acquiring such shares for its own
account, and will not transfer the Warrant Shares unless pursuant
to an effective and current registration statement under the
Securities Act or an exemption from the registration requirements
of the Securities Act and any other applicable restrictions, in
which event the Warrant Holder shall be bound by the provisions of
a legend or legends to such effect that shall be endorsed upon the
certificate(s) representing the Warrant Shares issued pursuant to
such exercise. In such event, the Warrant Shares issued upon
exercise hereof shall be imprinted with a legend in substantially
the form provided in Section 7(b).
(b)
Warrant Holder represents and warrants
that it is acquiring this Warrant for its own account, for purposes
of investment, and not with a view to, or for sale in connection
with, any distribution thereof within the meaning of the Securities
Act and the rules and regulations promulgated thereunder.
Warrant Holder represents, warrants and agrees that it will
not sell, exercise, transfer or otherwise dispose of this Warrant
(or any interest therein) or any of the Common Stock purchasable
upon exercise hereof, except pursuant to (i) an effective
registration statement under the Securities Act and applicable
state securities laws or (ii) an opinion of counsel, satisfactory
to Company, that an exemption from registration under the
Securities Act and such laws is available. Warrant Holder
further acknowledges and agrees that Company is not required,
legally or contractually, so to register or qualify the Warrant or
such Common Stock or to take any action to make such an exemption
available. Warrant Holder understands that Company will be
relying upon the truth and accuracy of the representations and
warranties contained in this Section 6 in issuing this Warrant and
such Common Stock without first registering the issuance thereof
under the Securities Act or qualifying or registering the issuance
thereof under any state securities laws that may be
applicable.
(c)
Warrant Holder acknowledges that (i)
there is not now, and there will not be in the future, any public
market for the Warrant, (ii) although there currently is a public
trading market for the Common Stock, there can be no assurance that
any such market will be sustained, and (iii) there can be no
assurance that Warrant Holder will be able to liquidate its
investment in Company. Warrant Holder represents and warrants
that it is familiar with and understands the terms and conditions
of Rule 144 promulgated under the Securities Act.
(d)
Warrant Holder represents and warrants to
Company that (i) it has such knowledge and experience in financial
and business matters as is necessary to enable it to evaluate the
merits and risks of any investments in Company and is not utilizing
any other person to be a purchaser representative in connection
with evaluation of such merits and risks; and (ii) it has no need
for liquidity in an investment in Company and is able to bear the
risk of that investment for an indefinite period and to afford a
complete loss thereof.
(e)
Warrant Holder represents and warrants
that it has had access to, and has been furnished with, all of the
information it has requested from Company and has had an
opportunity to review the books and records of Company and to
discuss with management and members of the board of directors of
Company the business and financial affairs of Company.
(f)
Warrant Holder agrees that at
the