Document:

Exhibit
10.2

UNI-PIXEL, INC.

INVESTORS’ RIGHTS AGREEMENT

This INVESTORS’
RIGHTS AGREEMENT (this “Agreement”)
is made as of February 13, 2007, by and among UNI-PIXEL, INC., a Delaware
corporation, (the “Company”),
and the investors listed in Schedule 1 hereto (each such investor
individually, an “Investor”
and, collectively, the “Investors”).

WHEREAS the
Investors are parties to the Securities Purchase Agreement of even date
herewith by and among the Company and the Investors (the “Securities
Purchase Agreement”), and it is a condition to the closing of
the sale of the Company’s Series B Preferred Stock, par value $0.001 per share
(the “Series B Preferred Stock”),
and Warrants (as defined below) to the Investors that the Company execute and
deliver this Agreement with the Investors.

NOW, THEREFORE, in
consideration of the premises and mutual covenants contained herein, the
parties hereto hereby agree as follows:

1.             Definitions. As used in this
Agreement, the following terms shall have the respective meanings set forth
below or elsewhere in this Agreement as described below:

“Affiliate” of any
Person means any other Person that, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
such Person, as such terms are used and construed under Rule 144 (as defined
below), and with respect to any Tudor Entity (as defined below), in addition to
the foregoing, the term “Affiliate”
shall also include the Related Entities.

“Board”
means the Board of Directors of the Company.

“Business Day” means
any day except Saturday, Sunday and any day which is a federal legal holiday or
a day on which banking institutions in the State of New York or Texas are
authorized or required by law or other governmental action to close.

“Certificate of Designations”
means the Certificate of Designations of the Series B Preferred Stock filed by
the Company with the Secretary of State of the State of Delaware establishing
the rights, preferences and privileges of the Series B Preferred Stock.

“Closing
Date” has the meaning set forth in the Securities Purchase
Agreement.

“Common Stock” means
the Company’s common stock, par value $0.001 per share, (including any
securities into which or for which such shares may be exchanged, or converted,
pursuant to any stock dividend, stock split, stock combination,
recapitalization, reclassification, reorganization or other similar event).

“Conversion Shares”
means the shares of Common Stock issuable upon conversion of the shares of
Series B Preferred Stock, as set forth in the Certificate of

Designations.

“Equity Securities”
means (i) any Common Stock, preferred stock or other equity security of the
Company, (ii) any security convertible into or exercisable or exchangeable for,
with or without consideration, any Common Stock, preferred stock or other
equity security of the Company (including any option to purchase such a
convertible security), (iii) any security carrying any option, warrant or right
to subscribe to or purchase any Common Stock, preferred stock or other equity
security or (iv) any such option, warrant or right.

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and all of the rules and
regulations promulgated thereunder.

“Fully Diluted Common Stock” means
the outstanding Common Stock and the shares of Common Stock issued or issuable
upon conversion in full of the shares of Series B Preferred Stock and exercise
in full of the Warrants, together with all other Equity Securities of the
Company outstanding as of any applicable record or measure date, treated on an
as-if-converted or as-if-exercised basis, as applicable.

“Holder” means any Investor who holds
Registrable Securities (as defined below) and any holder of Registrable
Securities to whom the registration rights conferred by this Agreement have
been duly and validly transferred in accordance with Section 9 of this
Agreement.

“Initial Public Offering” means the
closing of the Company’s first public offering of the Company’s Common Stock
registered under the Securities Act.

“Person” (whether or
not capitalized) means an individual, partnership, limited liability company,
corporation, association, trust, joint venture, unincorporated organization,
and any government, governmental department or agency or political subdivision
thereof.

“Prospectus” means the
prospectus included in any Registration Statement (as defined below)
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective Registration
Statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by such
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference in such Prospectus.

“Qualified Public Offering” means a
bona fide public offering, pursuant to an effective registration statement
under the Securities Act covering the offer and sale of Common Stock for the
account of the Company, by a reputable investment bank on a firm commitment
underwriting basis in which (x) the price per share of Common Stock is at least
five times (5x) the then applicable Series B Preferred Conversion Price (as
defined in the Certificate of Designations), and (y) the gross cash proceeds to
the Company (before underwriting discounts, commissions and fees) are
$75,000,000 or more (or such other amount as approved by the Board, including
at least one Series B Director (as defined in the Certificate of Designations),
if any are 

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on the Board at such
time), and following which offering the Common Stock is listed on the New York
Stock Exchange or admitted to quotation on NASDAQ (or such other appropriate
securities exchange as approved by the Board, including at least one Series B
Director, if any are on the Board at such time).

Qualifying
Holder means any Investor who (together with its Affiliates)
holds Series B Preferred Stock and/or Warrants representing (on an
as-if-converted and/or as-if-exercised basis, respectively) five percent (5%)
or more of the Company’s Fully Diluted Common Stock.

The terms “register,” “registered”
and “registration” shall refer to a
registration effected by preparing and filing a Registration Statement (as
defined below) in compliance with the Securities Act (as defined below) and the
declaration or ordering of the effectiveness of such registration.

“Registrable Securities”
means, at the relevant time of reference thereto, the Conversion Shares and the
Warrants Shares (including any shares of capital stock that may be issued in
respect thereof pursuant to a stock split, stock dividend, recombination,
reclassification or the like); provided,
however, that the term “Registrable Securities” shall not include any
of the Conversion Shares or Warrant Shares that (a) are actually sold pursuant
to a registration statement that has been declared effective under the
Securities Act by the SEC, (b) may be sold at such time by the holder thereof
pursuant to Rule 144(k) under the Securities Act, or (c) cease to be
outstanding.

“Registration Statement”
means any registration statements contemplated by this Agreement, including (in
each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, pre- and post-effective amendments thereto, all
exhibits thereto, and all material incorporated by reference in such
registration statement or Prospectus.

“Related Entities”
includes, with respect to any Tudor Entity, any entities for which any of the
Tudor Entities or any of its Affiliates serve as general partner and/or
investment advisor or in a similar capacity, and all mutual funds or other
pooled investment vehicles or entities under the control or management of any
of the Tudor Entities or its Affiliates. 
For purposes of this Agreement (a) “Tudor Entities” means each of the following:
Tudor Investment Corporation, Tudor Group Holdings, LLC, their respective
Affiliates, and any Affiliate or Affiliated Group of Tudor Investment
Corporation and/or Tudor Group Holdings LLC, and (b) with respect to the Tudor
Entities, “Affiliated
Group” has the meaning given to it in Section 1504 of the
Internal Revenue Code of 1986, as amended, and in addition includes any
analogous combined, consolidated or unitary group, as defined under any
applicable state, local or foreign income tax law.

“Restricted Securities” means any
Registrable Securities required to bear the legend set forth in Section 9(b)
of this Agreement.

“Rule 144” means Rule
144 promulgated under the Securities Act and any successor or substitute rule,
law or provision.

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“SEC” means the
Securities and Exchange Commission.

“Securities Act” means
the Securities Act of 1933, as amended, and all of the rules and regulations
promulgated thereunder.

“Shares” means the shares of Series B
Preferred Stock issued and sold by the Company to the Investors pursuant to the
Securities Purchase Agreement.

“Warrant Shares” means the shares of
Common Stock issued or issuable upon the exercise of the Warrants.

“Warrants” means the warrants to
purchase up to in aggregate 6,839,279 shares of Common Stock issued to the
Investors pursuant to Section 2.3 of the Securities Purchase Agreement.

2.             Demand Registration.

(a)           Request for Registration.  If the Company shall receive at any time
after one hundred eighty (180) days following the effective date of the
registration statement for the Initial Public Offering a written request from
(x) the Tudor Entities (together with their Related Entities), provided at such
time they collectively hold shares of Common Stock (on an as-if-converted to
Common Stock basis in respect of the Shares and as-if-exercised basis in
respect of the Warrants) representing in aggregate five percent (5%) or more of
the Fully Diluted Common Stock or (y) Investors (together with the Investors’
Affiliates) holding shares of Common Stock (on an as-if-converted to Common
Stock basis in respect of the Shares and as-if-exercised basis in respect of
the Warrants) representing in aggregate twenty percent (20%) or more of the
Fully Diluted Common Stock, that the Company effect any registration with
respect to all or a part of the Registrable Securities held by requesting Investors,
then the Company shall, subject to the conditions set forth in this Section
2, use its reasonable best efforts to:

(i)            as
soon as practicable, prepare and file with the SEC a Registration Statement on
such form under the Securities Act then available to the Company for the
purpose of registering under the Securities Act all or such portion of the
Registrable Securities as are specified in such request (together with any
shares of Common Stock desired to be included in such Registration Statement
for the account of the Company and/or the account of holders of piggy-back
registration rights with respect to the Company’s Common Stock, subject to any
limitations that may be advised by the managing underwriter regarding the
maximum size of the offering pursuant to Section 2(d)); and

(ii)           cause
such Registration Statement to be declared effective as soon as practicable but
in no event later than (x) the date that is ninety (90) days following the
receipt of such request, in the event that such Registration Statement is not
reviewed by the SEC or (y) the date that is one hundred twenty (120) days
following the receipt of such request in the event such review takes place
(including filing with the SEC, within 

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three (3) Business Days of the date that the Company is notified in
writing by the SEC that such Registration Statement will not be reviewed or
will not be subject to further review, a request for acceleration of
effectiveness in accordance with Rule 461 promulgated under the Securities Act,
which request shall request an effective date that is within three (3) Business
Days of the date of such request), and to remain effective, subject to the
provisions of Section 2(c), for not less than 180 days.  The Company shall notify each requesting
Investor in writing promptly (and in any event within three (3) Business Days)
after such Registration Statement has been declared effective by the SEC.

(b)           Limitations.  The Company shall not be obligated to effect,
or to take any action to effect, any registration pursuant to this Section 2:

(i)            in
any particular jurisdiction in which the Company would be required to execute a
general consent to service of process, qualify to do business as a foreign
corporation or become subject to taxation in such jurisdiction, in effecting
such registration, qualification, or compliance, unless the Company is already
subject to service, qualified to do business or subject to taxation in such
jurisdiction and except as may be required by the Securities Act;

(ii)           after
the Company, in the case of Investors meeting the requirements of Section
2(a)(x) or Section 2(a)(y), respectively, has effected two (2) such
registrations pursuant to this Section 2 (counting for these purposes
only registrations which have been (A) declared or ordered effective and
pursuant to which securities have been sold as contemplated in the Registration
Statement or (B) withdrawn at the request of the requesting Investors other
than as a result of a material adverse change to the Company);

(iii)          during
the period starting with the date sixty (60) days prior to the Company’s
good faith estimate of the date of the filing of and ending on a date one
hundred eighty (180) days following the effective date of a registration
for the Company’s account that is subject to Section 3 hereof; provided, however, that the Company is actively employing in
good faith its best efforts to cause such registration statement to become
effective; or

(iv)          if
the requesting Investors propose to dispose of Registrable Securities that may
be immediately registered on Form S-3 pursuant to Section 4
hereof for disposal in the manner requested.

(c)           Deferral.  Notwithstanding anything in this Section 2
to the contrary, if the Company shall furnish to the Investors a certificate
signed by the President, Chief Executive Officer or Chief Financial Officer of
the Company stating that the Board has made the good faith determination (i)
that the filing of a Registration Statement pursuant to this Section 2
covering the Registrable Securities would require, under the Securities Act,
premature disclosure in such Registration Statement (or the Prospectus relating
thereto) of material, nonpublic information concerning the Company, its
business or prospects or any proposed material transaction involving the Company,
(ii) that such premature disclosure would be materially adverse to the 

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Company, its business or
prospects or any such proposed material transaction or otherwise would not be
in the best interests of the Company and (iii) that it is therefore essential
to defer the filing of such Registration Statement (and the Prospectus relating
thereto), then the Company shall have the right to defer the filing of such
Registration Statement (and the Prospectus relating thereto) for a period not
greater than sixty (60) consecutive days; provided, however,
that the Company shall not defer its obligation in this manner more than twice
in any consecutive twelve (12) month period. 
The Company agrees that, as promptly as possible after the consummation,
abandonment or public disclosure of the circumstances that caused the Company
to defer the filing of such Registration Statement (and the Prospectus relating
thereto) pursuant to this Section 2(c), the Company will as soon as
practicable file such Registration Statement.

(d)           Underwriting.  If the requesting Investors intend to
distribute the Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as a part of their request made
pursuant to this Section 2.  In
such event, the right of any requesting Investor to include all or any portion
of its Registrable Securities in such registration pursuant to this Section
2 shall be conditioned upon such Investor’s participation in such
underwriting and the inclusion of such Investor’s Registrable Securities to the
extent provided herein.  The Company
shall (together with all Investors proposing to distribute their securities
through such underwriting) enter into an underwriting agreement in customary
form with the representative of the underwriter or underwriters selected for
such underwriting by the requesting Investors, which underwriters are
reasonably acceptable to the Company.

If the managing
underwriter advises the requesting Investors in writing that, in its opinion,
the number of shares requested by the Investors to be included in such
registration, as well as any other shares requested by other shareholders to be
included in such registration pursuant to any piggy-back registration rights or
proposed to be included by the Company, is likely to affect materially and
adversely the success of the offering, the timing, the method of distribution
or the price that would be received for any shares of Common Stock offered in
such offering, then, notwithstanding anything in this Section 2 or any
other agreements of the Company with any other shareholders to the contrary,
the Company shall be required to include in such registration the Registrable
Securities requested to be included in such registration for the account of the
requesting Investors, in priority to any other shareholders and the Company,
and as among the requesting Investors pro rata based on the number of
Registrable Securities held by them or on such other basis as they may agree
among themselves.

If an Investor
which has requested inclusion of Registrable Securities in such registration as
provided above does not agree to the terms of any such underwriting, such
Investor’s Registrable Securities may be excluded therefrom.  Any Registrable Securities excluded or
withdrawn from such underwriting shall also be withdrawn from such
registration.  If Registrable Securities
are so withdrawn from the registration, and if the number of Registrable
Securities to be included in such registration was previously reduced as a
result of marketing factors pursuant to this Section 2(d), then the Company shall then offer to other
shareholders who have retained rights to include securities in the registration
the right to include additional shares in the registration in an aggregate
amount equal to the number of shares so withdrawn.

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3.             “Piggyback” Registration.

(a)           Company Registration.  If at any time the Company proposes to
register any of its Common Stock under the Securities Act for an underwritten
offering, whether for its own account (other than in connection with the
Initial Public Offering) or the account of others (but excluding any
registrations to be effected on Forms S-4 or S-8 or other applicable successor
forms), the Company shall, each such time, give to all Holders twenty (20) days’
prior written notice of its intent to do so, and such notice shall describe the
proposed registration and shall offer such Holders the opportunity to include
in such registration such number of Registrable Securities as each such Holder
may request.  Upon the written request of
any Holder given to the Company within fifteen (15) days after the receipt of
any such notice by the Company, the Company shall include in such Registration
Statement the Registrable Securities of such Holder requested to be registered,
subject to cut-back as provided in Section 3(b) below.  The Holders of Registrable Securities shall
be permitted to join in any demand for registration by any other shareholders
of the Company pursuant to any registration rights that they may have
(including in respect of an Initial Public Offering), and in such event the
Registrable Securities held by such Holders shall be counted for purposes of
determining whether the minimum number of shares entitled to demand
registration shall have made such demand (to the extent required) and the Holders
shall be entitled to the piggyback registration rights provided in this Section
3 in any registration effected by the Company pursuant to such demand.

(b)           If the managing underwriter advises
the Company in writing that, in its opinion, the number of shares requested by
the Holders to be included in such registration is likely to affect materially
and adversely the success of the offering, the timing, the method of
distribution or the price that would be received for any shares of Common Stock
offered in such offering, then, notwithstanding anything in this Section 3
to the contrary, the Company shall only be required to include in such
registration, to the extent of the number of shares of Common Stock which the
Company is so advised can be sold in such offering without such effect (the “Maximum Number”), a number of shares
of Common Stock requested to be included in such registration: (i) if such
registration is being made pursuant to the exercise of the demand registration
rights of a shareholder of the Company, then those shares to be registered for
the account of the demanding shareholder up to the Maximum Number, and if all
such shares do not exceed the Maximum Number, then such other shares to be
registered for the account of the Company, such Holders and such other
stockholders of the Company exercising their piggy-back registration rights, in
an amount up to the remaining balance of the Maximum Number, pro rata on the
basis of the number of shares of Common Stock that each of them has requested or
proposed to be included in such registration; and (ii) if such registration is
being made for the Company’s own account, then those shares to be registered
for the Company up to the Maximum Number, and if all such shares do not exceed
the Maximum Number, then such other shares to be registered for the account of
the Holders and such other stockholders of the Company exercising their
piggy-back registration rights, in an amount up to the remaining balance of the
Maximum Number, pro rata on the basis of the number of shares of Common Stock
that each of them has requested or proposed to be included in such
registration.  Notwithstanding the
foregoing, in no event shall the amount of securities of the selling Holders
included in the offering be less than thirty percent (30%) of the total number
of shares originally requested by the Holders to be included in such
offering.  For purposes of the preceding
sentence concerning apportionment, for any selling shareholder that is a Holder
of Registrable Securities and that is an investment fund, partnership or
corporation, the affiliated investment funds, partners, retired partners and 

 7
 

shareholders of such
Holder, or the estates and family members of any such partners and retired
partners and any trusts for the benefit of any of the foregoing persons shall
be deemed to be a single selling Holder, and any pro rata reduction with
respect to such selling Holder, shall be based upon the aggregate amount of
Registrable Securities requested to be included in such registration by all
such related entities and individuals.

(c)           The Company shall not be required
under this Section 3 or otherwise to include the Registrable Securities
of any Holder in any such registration unless such Holder accepts and agrees to
the terms of the underwriting, which shall be reasonable and customary, as
agreed upon between the Company and the underwriters selected by the Company,
and such Holder complies with its obligations under Section 8 hereof.

4.                                       Registration
on Form S-3.

(a)           Request for Form S-3 Registration.  After the Initial Public Offering, the
Company shall use its reasonable best efforts to qualify for registration on
Form S-3 or any comparable or successor form or forms.  After the Company has qualified for the use
of Form S-3, in addition to the rights contained in Sections 2 and 3 and
subject to the conditions set forth in this Section 4, if the Company
shall receive from a Holder or Holders of Registrable Securities a written
request that the Company effect any registration on Form S-3 or any similar
short form registration statement with respect to all or part of the
Registrable Securities, the Company shall take all such action with respect to
the registration of such Registrable Securities as required by Section
2(a)(i) and (ii), and upon the effectiveness of the registration statement,
to maintain such effectiveness for offers and sales from time to time, on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act, of
the Registrable Securities requested to be included until all of the
Registrable Securities registered thereunder shall have been sold in the matter
contemplated therein.

(b)           Limitations on Form S-3
Registration.  The Company shall not
be obligated to effect, or take any action to effect, any such registration
pursuant to this Section 4 in any of the circumstances described in Section
2(b)(i) or (iii), and shall not be required to effect more than two
registrations per year pursuant to Section 4(a).

(c)           Deferral; Suspension.  Notwithstanding anything in this Section 4
to the contrary, if the Company shall furnish to the Investors a certificate
signed by the President, Chief Executive Officer or Chief Financial Officer of
the Company stating that the Board has made the good faith determination (i)
that upon the advice of counsel the continued use by the Investors of a
Registration Statement pursuant to this Section 4 for purposes of
effecting offers or sales of Registrable Securities pursuant thereto would
require, under the Securities Act, premature disclosure in such Registration
Statement (or the Prospectus relating thereto) of material, nonpublic
information concerning the Company, its business or prospects or any proposed
material transaction involving the Company and (ii) that such premature
disclosure would be materially adverse to the Company, its business or
prospects or any such proposed material transaction or otherwise would not be
in the best interests of the Company, then the right of the Investors to use
such Registration Statement (and the Prospectus relating thereto) for purposes
of effecting offers or sales of Registrable Securities pursuant thereto and the
filing of such 

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Registration
Statement pursuant to a request under this Section 4 may be suspended or
deferred, as the case may be, for a period (the “Suspension
Period”) not greater than sixty (60) consecutive days and with
not more than two (2) Suspension Periods in any consecutive twelve (12) month
period.  During the Suspension Period,
the Investors shall not offer or sell any Registrable Securities pursuant to or
in reliance upon such Registration Statement (or the Prospectus relating
thereto).  The Company agrees that, as
promptly as possible after the consummation, abandonment, public disclosure or
other appropriate resolution of the event or transaction that caused the
Company to suspend the use or delay the filing of such Registration Statement
(and the Prospectus relating thereto) pursuant to this Section 4(c), the
Company shall as promptly as possible lift any suspension or terminate any
delay, as the case may be, provide the Investors with revised Prospectuses, if
required, and notify the Investors of their ability to effect offers or sales
of Registrable Securities pursuant to or in reliance upon such Registration
Statement.

(d)           Underwriting.  If the Holders requesting registration under
this Section 4 intend to distribute the Registrable Securities covered
by their request by means of an underwriting, the provisions of Section 2(d)
shall apply to such registration. 
Notwithstanding anything contained herein to the contrary, registrations
effected pursuant to this Section 4 shall not be counted as requests for
registration or registrations effected pursuant to Section 2.

5.             Obligations of the Company.  In connection with the Company’s registration
obligations hereunder, the Company shall, as expeditiously as practicable:

(a)           (i) Furnish to each Holder copies of
all Registration Statements filed with the SEC prior to their being filed with
the SEC, (ii) use commercially reasonable efforts to cause its officers and
directors, counsel and certified public accountants to respond to such
inquiries and provide such certification, opinions and review letters as shall
be necessary, in the reasonable opinion of such Holder or its counsel, to conduct
a reasonable investigation within the meaning of the Securities Act and
customary for the registration and distribution pursuant thereto, and (iii)
notify the Holders of any stop order issued or threatened by the SEC and use
best efforts to prevent the entry of such stop order or to remove it if
entered.

(b)           Prepare and file with the SEC such
amendments and supplements, including post-effective amendments, to each
Registration Statement and the Prospectus used in connection therewith as may
be necessary to comply with the Securities Act and to keep the Registration
Statement continuously effective as required herein, and prepare and file with
the SEC such additional Registration Statements as necessary to register for
resale under the Securities Act all of the Registrable Securities to include
naming any permitted transferees of Registrable Securities as selling
stockholders in such Registration Statement and otherwise as required pursuant
to Sections 5(c) or (d) below; (ii) cause any related Prospectus
to be amended or supplemented by any required Prospectus supplement, and as so
supplemented or amended to be filed pursuant to Rule 424; (iii) respond as
promptly as practicable to any comments received from the SEC with respect to
each Registration Statement or any amendment thereto and as promptly as
practicable provide the Holders true and complete copies of all correspondence
from and to the SEC relating to the Registration Statement (other than
correspondence containing material nonpublic information); and (iv) comply with
the provisions of the Securities Act and 

 9
 

the Exchange Act
with respect to the disposition of all Registrable Securities covered by such
Registration Statement as so amended or in such Prospectus as so supplemented.

(c)           Notify the Holders and their counsel
as promptly as practicable:  (i) when the
SEC notifies the Company whether there will be a “review” of a Registration
Statement and whenever the SEC comments in writing on such Registration
Statement and (ii) when a Registration Statement, or any post-effective
amendment or supplement thereto, has become effective, and after the
effectiveness thereof:  (A) of any
request by the SEC or any other federal or state governmental authority for amendments
or supplements to the Registration Statement or Prospectus or for additional
information; (B) of the issuance by the SEC or any state securities commission
of any stop order suspending the effectiveness of the Registration Statement
covering any or all of the Registrable Securities or the initiation of any
proceedings for that purpose; and (C) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any proceeding for such
purpose.  Without limitation of any
remedies to which the Investors may be entitled under this Agreement, if any of
the events described in Section 5(c)(ii)(A), (B), and (C)
occurs, the Company shall use best efforts to respond to and correct the
event.  Upon its receipt of written
notification from the Company of the occurrence of any of the events described
in Section 5(c)(ii)(A), (B) and (C), each Holder shall not
offer or sell any of its Registrable Securities pursuant to the Prospectus
until it has been advised in writing by the Company that it may resume sales,
either under such Prospectus or pursuant to any amendment or supplement thereto
delivered by the Company to such Holder.

(d)           Notify the Holders and their counsel
as promptly as practicable of the occurrence (but not the nature or details) of
any event as a result of which the Prospectus included in or relating to a
Registration Statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading; and,
thereafter, the Company shall as promptly as practicable prepare (and, when
completed, give notice to each Investor) a supplement or amendment to such
Prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such Prospectus will not contain an untrue statement of
a material fact or omit to state any fact necessary to make the statements
therein not misleading; provided, however,
that upon such notification by the Company, the Holders shall not offer or sell
Registrable Securities pursuant to such Prospectus until the Company has
notified the Investors that it has prepared a supplement or amendment to such
Prospectus and delivered copies of such supplement or amendment to the
Investors (it being understood and agreed by the Company that the foregoing
proviso shall in no way diminish or otherwise impair the Company’s obligation
to as promptly as practicable prepare a Prospectus amendment or supplement as
above provided in this Section 5(d) and deliver copies of same as above
provided in Section 5(h) hereof).

(e)           Upon the occurrence of any event
described in Section 5(d) hereof, as promptly as practicable, prepare a
supplement or amendment, including a post-effective amendment, to the
Registration Statement or a supplement to the related Prospectus or any
document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, neither the
Registration Statement nor such 

 10
 

Prospectus will contain
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they are made, not misleading.

(f)            Use reasonable best efforts to avoid
the issuance of or, if issued, obtain the withdrawal of, (i) any order
suspending the effectiveness of any Registration Statement or (ii) any
suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction, as promptly as possible.

(g)           Furnish to the Holders and their
counsel, without charge, at least one conformed copy of each Registration
Statement and each amendment thereto, and all exhibits to the extent requested
by such Holder or their counsel (including those previously furnished or
incorporated by reference) as promptly as practicable after the filing of such
documents with the SEC.

(h)           As promptly as practicable furnish to
each selling Holder, without charge, such number of copies of a Prospectus,
including a preliminary Prospectus, in conformity with the requirements of the
Securities Act, and such other documents (including, without limitation,
Prospectus amendments and supplements) as each such selling Holder may
reasonably request in order to facilitate the disposition of the Registrable
Securities covered by such Prospectus and any amendment or supplement
thereto.  The Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by each of
the selling Holders in connection with the offering and sale of the Registrable
Securities covered by such Prospectus and any amendment or supplement thereto
to the extent permitted by federal and state securities laws and regulations.

(i)            Use reasonable best efforts to
register and qualify (or obtain an exemption from such registration and
qualification of) the Registrable Securities under such other securities or
blue sky laws of the states of residence of each Holder and such other
jurisdictions as each Holder shall reasonably request, to keep such
registration or qualification (or exemption therefrom) effective during the
periods each Registration Statement is effective, and do any and all other acts
or things which may be reasonably necessary or advisable to enable each Holder
to consummate the public sale or other disposition of Registrable Securities in
such jurisdiction; provided, however,
that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business, to file a general consent to
service of process or become subject to taxation in any such states or
jurisdictions where it is not then qualified or subject to process or taxation.

(j)            Cooperate with the Holders to
facilitate the timely preparation and delivery of certificates representing the
Registrable Securities to be delivered to a transferee pursuant to a
Registration Statement, which certificates shall be free, to the extent permitted
by this Agreement, the Securities Purchase Agreement and applicable law, of all
restrictive legends, and to enable such Registrable Securities to be in such
denominations and registered in such names as such Holders may request.

(k)           Cooperate with any reasonable due
diligence investigation undertaken by 

 11
 

the Holders, any managing
underwriter participating in any disposition pursuant to a Registration
Statement, Holders’ counsel and any attorney, accountant or other agent
retained by Holders or any managing underwriter, in connection with the sale of
the Registrable Securities, including, without limitation, making available any
documents and information; provided, however, that the Company will not deliver or make available
to any Holder material, nonpublic information unless such Holder specifically
requests and consents in advance in writing to receive such material, nonpublic
information and, if requested by the Company, such Holder agrees in writing to
treat such information as confidential and use its reasonable best efforts to
maintain the confidentiality thereof.

(l)            At the request of an Affiliate of a
Holder, the Company shall amend any Registration Statement to include such
Affiliate as a selling stockholder in such Registration Statement.

(m)          Comply with all applicable rules and
regulations of the SEC.

6.             Expenses of Registration.  The Company shall pay for all expenses
(exclusive of underwriting discounts and commissions, if any) incurred in
connection with a registration pursuant to this Agreement and compliance with Section
5 of this Agreement, including, without limitation, (i) all registration,
filing and qualification fees and expenses (including without limitation those
related to filings with the SEC,  or any
national securities exchange or automated quotation system upon which the
Company’s securities are listed or admitted for quotation and in connection
with applicable state securities or blue sky laws), (ii) all printing expenses,
(iii) all messenger, telephone and delivery expenses incurred by the Company,
(iv) all fees and disbursements of counsel for the Company and of one counsel
for the Holders, such fees and disbursements of counsel for the Holders not to
exceed $40,000, and (v) all fees and expenses of all other Persons retained by
the Company in connection with the consummation of the transactions
contemplated by this Agreement.

7.             Indemnification.  In the event that any Registrable Securities
of the Investors are included in a Registration Statement pursuant to this
Agreement:

(a)           To the fullest extent permitted by
law, the Company will indemnify and hold harmless each Investor and each
officer, director, fiduciary, agent, investment advisor, employee, member (or
other equity holder), general partner and limited partner (and Affiliates
thereof) of such Investor, each broker, underwriter or other person acting on
behalf of such Investor and each person, if any, who controls such Investor
within the meaning of the Securities Act, against any losses, claims, damages
or liabilities, or administrative, judicial, regulatory or civil proceedings,
joint or several (the “Losses”)
to which they may become subject under the Securities Act or otherwise, insofar
as such Losses (or actions in respect thereof) arise out of or relate to any
untrue or alleged untrue statement of any material fact contained in the
Registration Statement, or arise out of or relate to the omission or alleged
omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading, or any violation by
the Company of the Securities Act or state securities or blue sky laws
applicable to the Company or the relevant registration and leading to action or
inaction required of the Company in connection with such registration or
qualification under such Securities Act or state 

 12
 

securities or blue sky
laws; and, subject to the provisions of Section 7(c) hereof, the Company
will reimburse on demand, upon receipt of written evidence, such Investor, such
broker or other person acting on behalf of such Investor or such officer,
director, fiduciary, employee, member (or other equity holder), general
partner, limited partner, affiliate or controlling person for any legal or
other expenses reasonably incurred by any of them in connection with
investigating or defending any such Losses (or actions in respect thereof); provided, however, that
the indemnity agreement contained in this Section 7(a) or Section
7(e) shall not apply to amounts paid in settlement of, or pursuant to any
judgment relating to, any such Losses if such settlement is effected, or
consent to such judgment is entered, without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable in
any such case for any such Losses (or actions in respect thereof), to the
extent that it arises out of or is based upon (i) an untrue statement of any
material fact contained in the Registration Statement or omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in the Registration Statement, in reliance upon and in conformity with written
information furnished by such Investor to the Company expressly for use in such
Registration Statement, or (ii) the failure of the Investor to cease all offers
and sales of Registrable Securities when required to do so pursuant to Sections
4(c), 5(c) and (d) hereof.

(b)           To the fullest extent permitted by
law, each Investor, severally (as to itself) and not jointly, will indemnify
and hold harmless the Company, each of its directors, each of its officers who
have signed the Registration Statement, each person, if any, who controls the
Company within the meaning of the Securities Act, all other Investors and each
broker, underwriter or other person acting on behalf of the Company or such
other Investors, against any Losses to which any of them may become subject
under the Securities Act or otherwise, insofar as and to the extent such Losses
(or actions in respect thereto) arise out of or are based upon any untrue
statement of any material fact contained in the Registration Statement, or
arise out of or relate to the omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent that such untrue statement or alleged
untrue statement or omission or alleged omission was made in the Registration
Statement in reliance upon and in conformity with written information furnished
by such Investor to the Company expressly for use in such Registration
Statement, or to the extent such Losses (or actions in respect thereof) arise
out of or are based upon the failure of the Investor to cease all offers and
sales of Registrable Securities when required to do so pursuant to Sections
4(c), 5(c) and (d); and, subject to the provisions of Section
7(d) hereof, such Investor will reimburse on demand, upon receipt of
written evidence, any legal or other expenses reasonably incurred by the
Company or any such director, officer, controlling person, or other Investor,
or such broker, underwriter or other person acting on behalf of the Company or
such Investor, in connection with investigating or defending any such Losses; provided, however, that
the maximum aggregate amount of liability of such Investor under this Section
7 shall be limited to the proceeds (net of underwriting discounts and commissions,
if any) actually received by such Investor from the sale of Registrable
Securities covered by such Registration Statement; and provided
further, however,
that the indemnity agreement contained in this Section 7(b) or Section
7(e) shall not apply to amounts paid in settlement of, or pursuant to any
judgment relating to, any such Losses if such settlement is effected, or
consent to such judgment is entered, 

 13
 

without the consent of
such Investor against which the request for indemnity is being made (which
consent shall not be unreasonably withheld).

(c)           As promptly as practicable after
receipt by an indemnified party under this Section 7 of notice of the
threat, assertion or commencement of any action, such indemnified party will,
if a claim in respect thereof is to be made against any indemnifying party
under this Section 7, notify the indemnifying party in writing of the
commencement thereof and the indemnifying party shall have the right to
participate in and, to the extent the indemnifying party desires, jointly with
any other indemnifying party similarly noticed, to assume at its expense the
defense thereof with counsel mutually satisfactory to the parties; provided, however, that,
the failure to notify an indemnifying party promptly of the threat, assertion
or commencement of any such action shall not relieve such indemnifying party of
any liability to the indemnified party under this Section 7 except (and
only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have proximately and materially adversely prejudiced
the indemnifying party.

(d)           If any indemnified party shall have
reasonably concluded that there may be one or more legal defenses available to
such indemnified party which are different from or additional to those
available to the indemnifying party, or that such claim or litigation involves
or could have an effect upon matters beyond the scope of the indemnity agreement
provided in this Section 7, the indemnifying party shall not have
the right to assume the defense of such action on behalf of such indemnified
party, and such indemnifying party shall reimburse such indemnified party and
any person controlling such indemnified party for the fees and expenses of one
counsel retained by the indemnified party which are reasonably related to the
matters covered by the indemnity agreement provided in this Section 7.  Subject to the foregoing, an indemnified
party shall have the right to employ separate counsel in any such action and to
participate in the defense thereof but the fees and expenses of such counsel
shall not be at the expense of the indemnifying party.

(e)           If the indemnification provided for
in this Section 7 from the indemnifying party is applicable by its terms
but unavailable to an indemnified party hereunder in respect of any Losses,
then the indemnifying party, in lieu of indemnifying such indemnified party,
shall, subject to the maximum aggregate liability of such indemnifying party
hereunder, contribute to the amount paid or payable by such indemnified party
as a result of such Losses in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and indemnified party in connection
with the actions which resulted in such Losses, as well as any other relevant
equitable considerations.  The relative
faults of such indemnifying party and indemnified party shall be determined by
reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact, has been made by, or relates to information
supplied by, such indemnifying party or indemnified party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such action.  The amount paid or
payable by a party as a result of the Losses referred to above shall be deemed
to include, subject to the limitations set forth in Section 7(a), (b),
(c) and (d), any legal or other fees, charges or expenses
reasonably incurred by such party in connection with any investigation or
proceeding.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of
the 

 14
 

Securities Act) shall be
entitled to contribution from any person who was not guilty of fraudulent
misrepresentation.  The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section
7(e) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in this paragraph.

(f)            The indemnity and contribution
agreements contained in this Section are in addition to (not in lieu of) any liability
that any indemnifying party may have to any indemnified party.

8              Information by Holder.  Each Holder shall, as a condition to the
inclusion of any of its Registrable Securities in any registration hereunder,
furnish to the Company such information regarding itself and the Registrable
Securities held by it and the method or proposed method of disposition of such
securities as the Company may reasonably request in writing as necessary to
effect the registration, qualification, or compliance referred to in Sections
2, 3, 4 or 5 or as otherwise necessary to comply with
the Securities Act and any applicable state securities laws.

9.             Restrictions on Transfer.

(a)           The holder of each certificate
representing Registrable Securities by acceptance thereof agrees to comply in
all respects with the provisions of this Section 9.  Each Holder
agrees not to make any sale, assignment, transfer, pledge or other disposition
of all or any portion of the Restricted Securities, or any beneficial interest
therein, except (i) pursuant to an effective registration statement under the
Securities Act, including such as required hereunder, or (ii) pursuant to an
available exemption from registration under the Securities Act (including sales
permitted pursuant to Rule 144) and applicable state securities laws.  Any transfer or purported transfer of the
Restricted Securities in violation of this Section 9 shall be void.  The Company shall not be required to register
any transfer of the Restricted Securities in violation of this Section 9.  The Company may, and may instruct any
transfer agent for the Company, to place such stop transfer orders as may be
required on the transfer books of the Company in order to ensure compliance
with the provisions of this Section 9.

(b)           Each certificate representing
Registrable Securities shall (unless otherwise permitted by the provisions of
this Agreement) be stamped or otherwise imprinted with a legend substantially
similar to the following (in addition to any legend required under applicable
state securities laws):

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, REGISTRATION UNDER SAID ACT.

 15
 

(c)           The legend set forth in Section
9(b) shall be removed from the certificates evidencing the Restricted
Securities, (i) in connection with any sale of such Restricted Securities
pursuant to Rule 144 or any effective registration statement, including such as
required hereunder, or (ii) if such Restricted Securities are eligible for sale
under Rule 144(k) (and the holder of such Restricted Securities has submitted a
written request for removal of the legend certifying that the holder is in
compliance with the applicable provisions of Rule 144(k)) or (iii) if such
legend is not required under applicable requirements of the Securities Act
(including interpretations and pronouncements issued by the Staff of the SEC)
(and the holder of such Restricted Securities has submitted a written request
for removal of the legend certifying that such legend is not required under
applicable requirements of the Securities Act (including such interpretations
and pronouncements)) and, if reasonably requested by the Company, the Company
has received from the Holder’s counsel an opinion, in such form as is
reasonably satisfactory to Company’s counsel, that such legend is not so
required.  The Company shall cause its
counsel to issue a legal opinion to the Company’s transfer agent, if required,
promptly upon the occurrence of any of the events in clauses (i), (ii) or (iii)
above to effect the removal of the legend on certificates evidencing the Restricted
Securities and shall also cause its counsel to issue a “blanket” legal opinion
to the Company’s transfer agent, if required, promptly after the effective date
of any registration statement, including such as required hereunder, covering
the resale of the Restricted Securities to allow sales without restriction
pursuant to such registration statement. 
The Company agrees that at such time as such legend is no longer
required under this Section 9, it will, promptly following the delivery
by a Holder to the Company or the Company’s transfer agent of a certificate
representing the Restricted Securities issued with such legend, deliver or
cause to be delivered to or as directed by such Holder a certificate
representing such Restricted Securities that is free from such legend; provided, however, that in the case of removal of the legend
in connection with a sale pursuant to Rule 144, the holder of such Restricted
Securities has submitted a written request for removal of the legend indicating
that the holder has complied with the applicable provisions of Rule 144,
including delivery of a broker’s representation letter and a copy of a Form 144
filed in connection with such sale.  The
Company may not make any notation on its records or give instructions to any transfer
agent of the Company that enlarge the restrictions on transfer set forth in
this Section.

10.           Reports Under the Exchange Act.  With a view to making available to the
Holders the benefits of Rule 144 and any other rule or regulation of the SEC
that may at any time permit the Holders to sell the Registrable Securities to
the public without registration, the Company agrees to use best efforts to: (i)
make and keep public information available, as those terms are understood and
defined in Rule 144; (ii) file with the SEC in a timely manner all reports and
other documents required to be filed by an issuer of securities registered
under the Securities Act or the Exchange Act; (iii) as long as any Holder owns
any Restricted Securities, to furnish in writing upon such Holder’s request a
written statement by the Company that it has complied with the reporting
requirements of Rule 144 and of the Securities Act and the Exchange Act, and to
furnish to such Holder a copy of the most recent annual and quarterly reports
of the Company, and such other reports and documents so filed by the Company as
may be reasonably requested in availing such Holder of any rule or regulation
of the SEC permitting the selling of any such Restricted Securities without
registration; and (iv) undertake any additional actions reasonably necessary to
maintain the availability of a registration statement, including on any
successor or 

 16
 

substitute forms, and the
use of Rule 144.

11.           Limitations on Subsequent
Registration Rights.  From and after
the date of this Agreement, the Company shall not, without the prior written
consent of the Holders of a majority of the then outstanding Registrable
Securities, enter into any agreement with any holder or prospective holder of
any securities of the Company giving such holder or prospective holder any
registration rights the term of which are senior to the registration rights
granted to the Holders hereunder.

12.           Information Covenants of the
Company.  If at any time the Company
shall cease to be a reporting company under the Exchange Act, the Company shall
furnish the following reports to each Qualifying Holder:

(a)           As soon as practicable after the end
of each fiscal year of the Company, and in any event within ninety (90) days
after the end of each fiscal year of the Company, a consolidated balance sheet
of the Company and its subsidiaries, if any, as at the end of such fiscal year,
and consolidated statements of income and cash flows of the Company and its
subsidiaries, if any, for such fiscal year, prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”),
applied on a consistent basis during the periods involved, except as indicated
therein or in the notes thereto, audited by nationally recognized independent
accounting firm experienced with rapidly growing companies selected by the
Company.

(b)           As soon as practicable after the end
of each of the first three (3) quarterly accounting periods in each fiscal year
of the Company, and in any event within forty five (45) days after the end of
each such quarterly accounting period, (i) an unaudited consolidated balance
sheet of the Company and its subsidiaries, if any, as at the end of such
quarterly accounting period, and unaudited consolidated statements of income
and cash flows of the Company and its subsidiaries, if any, for such fiscal
period, prepared in accordance with GAAP, applied on a consistent basis during
the periods involved, subject to normal year-end audit adjustments, together
with an appropriately detailed and informative discussion and review by
management of the financial results and performance of the Company and material
developments in its business during such fiscal period, and (ii) a statement
showing the number of shares of each class and series of capital stock and
securities convertible into or exercisable for shares of capital stock
outstanding at the end of the period, the number of common shares issuable upon
conversion or exercise of any outstanding securities convertible or exercisable
for common shares and the exchange ratio or exercise price applicable thereto,
all in sufficient detail as to permit the Investor to calculate its percentage
equity ownership in the Company.

(c)           As soon as practicable after the end
of each month, and in any event within thirty (30) days after the end of each
month, an unaudited consolidated balance sheet of the Company and its
subsidiaries, if any, as at the end of such month, and unaudited consolidated
statements of income and cash flows of the Company and its subsidiaries, if
any, for such month, prepared in accordance with GAAP, applied on a consistent
basis during the period involved, subject to normal year-end audit adjustments.

(d)           At least thirty (30) days prior to
the beginning of each fiscal year, an 

 17
 

annual budget and
operating plans of the Company for such fiscal year (and as soon as available,
any subsequent revisions thereto), such annual budget and operating plans
(including an subsequent revisions thereto) to be approved by the Board.

13.           “Market Stand-Off” Agreement.  Each
of the Investors hereby agrees that it will not, without the prior written
consent of the managing underwriter, during the period commencing on the date
of the final prospectus relating to the Company’s Initial Public Offering and
ending on the date specified by the Company and the managing underwriter (such
period not to exceed one hundred eighty (l80) days) (i) lend, offer,
pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase, or otherwise transfer or dispose of, directly or indirectly, any
shares of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock held immediately prior to the effectiveness of
the Registration Statement for such offering, or (ii) enter into any swap
or other arrangement that transfers to another, in whole or in part, any of the
economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (i) or (ii) above is to be settled by
delivery of Common Stock or other securities, in cash or otherwise.  The foregoing provisions of this Section 13
shall only be applicable to the Investors if all officers, directors and
greater than one percent (1%) shareholders of the Company enter into similar
agreements.  The underwriters in
connection with the Company’s Initial Public Offering are intended third-party
beneficiaries of this Section 13 and shall have the right, power
and authority to enforce the provisions hereof as though they were a party
hereto.  Each of the Investors further
agrees to execute such agreements as may be reasonably requested by the
underwriters in the Company’s Initial Public Offering that are consistent with
this Section 13 or that are necessary to give further effect
thereto.  Any discretionary waiver or termination of the restrictions of any or all
of such agreements by the Company or the underwriters shall apply to all of the
parties subject thereto, including the Investors, pro rata based on the number
of shares subject to such restrictions.

14.           Qualifying Holders’ Participation
Rights in Subsequent Financings.

(a)           Subject
to applicable securities laws, following the Closing and prior to the Qualified
Public Offering, the Company shall not, and shall not agree to, issue, sell or
exchange any Equity Securities in a financing transaction (any transaction
other than the excluded transactions described in subsection (c) below being
deemed to be a financing transaction) (a “Financing”),
unless the Company shall have first complied with this Section 14.  The Company shall deliver to each Qualifying
Holder a written notice (the “Offer”) of
any proposed or intended Financing and offer to each Qualifying Holder the
opportunity, but not the obligation, to participate in its pro rata share of
the Financing determined, in aggregate, by multiplying the total amount of the
Financing by a fraction, the numerator of which is (i) the number of shares of
Fully Diluted Common Stock held by such Qualifying Holder as of the date
immediately prior to the issuance of such Equity Securities (such date being
the “Measuring Date”),
and the denominator of which is (ii) the total number of shares of Fully
Diluted Common Stock outstanding as of the Measuring Date.  The Offer shall describe the terms, including
price and amount, of the Financing and include a reasonably detailed
calculation of each Qualifying Holder’s participation right in accordance with
the foregoing.  Each Qualifying Holder shall provide written
notice to the Company within ten (10)
Business Days from the giving of the 

 18
 

Offer (the “Election Period”) of the
amount, if any, of the Financing as to which they intend to exercise their
participation right as provided above and to indicate whether such Qualifying
Holder desires to exercise its over-allotment option as provided in subsection
(b) below.

(b)           In
the event any of the Qualifying Holders, or any other securityholder of the
Company with similar participation rights, decline or fail within the required
periods to exercise fully their respective participation rights, the Company
shall provide a further written notice to fully exercising Qualifying Holders
of the amount of such Financing not subscribed for pursuant to such rights.  The fully exercising Qualifying Holders shall
have the right, exercisable by written notice to the Company within five (5)
Business Days from the giving of such further notice by the Company (the “Over-Allotment Period”), to
subscribe for a pro rata share of the unsubscribed portion of the Financing on
the basis of the number of shares of Fully Diluted Common Stock held by fully
exercising Qualifying Holders and other fully exercising security-holders of
the Company.  The closing of the
Qualified Holder’s participation, and additional participation, if any, shall
occur at the time contemplated in the Offer, but in any case, not any earlier
than ten (10) days after the later of the Election Period and the
Over-Allotment Period, if any, at which time the Qualified Holder shall receive
certificates for such Qualifying Holder’s Equity Securities against payment
therefor in immediately available funds. 
The Company shall have ninety (90) days from the end of the
Over-Allotment Period, if any, to complete the unsubscribed portion of the
Financing on terms not more materially
advantageous to purchasers in the Financing than those described in the
Offer.  The Company shall comply anew
with the requirements, as to an Offer and otherwise, of this Section 14
as to any Financing not completed within such period.

(c)           The
foregoing right of first offer shall not apply to any of the following:

(i)            the conversion of the Series A
Preferred Stock or Series B Preferred Stock;

(ii)           the exercise of Warrants;

(iii)          shares of Common Stock (or options
thereon) (subject to adjustment for any stock splits, reverse stock splits,
combinations or similar events affecting the Common Stock after the date of
this Agreement) issued after the Closing Date to employees, officers or
directors of, or consultants or advisors to the Company or any subsidiary
thereof pursuant to stock purchase or stock option plans or other compensatory
arrangements (collectively, “Plans”); provided, however, that any such issuances are approved in
accordance with the Certificate of Designations;

(iv)          Equity Securities issued pursuant to
any rights or agreements, options, warrants or convertible securities that are
outstanding as of the date of this Agreement or that are issued or granted
thereafter; provided, however, that the transaction
pursuant to which such rights or agreements, options, warrants or convertible
securities are issued or granted after the Date of this Agreement was conducted
in compliance with this Section 14;

 19
 

(v)           any Equity Securities issued or
issuable in connection with any stock split, stock dividend or recapitalization
by the Company for which adjustment is made pursuant to Section 5 of the
Certificate of Designations;

(vi)          any Equity Securities that are issued
by the Company in a Qualified Public Offering;

(vii)         any Equity Securities issued in
connection with bona fide acquisitions, mergers or other strategic transactions
approved by the Board; and

(viii)        any Equity Securities issued to any
Person as a component of any business relationship with such Person, the terms
of which business relationship and transaction are approved by the Board,
primarily for (x) joint venture, technology licensing or development activities
purposes, (y) purposes of distribution, supply or manufacture of the Company’s
products or services or (z) any purposes other than raising capital.

15.           Entire Agreement.  This Agreement, the Securities Purchase
Agreement, the Certificate of Designations and the Warrants constitute and
contain the entire agreement and understanding of the parties with respect to
the subject matter hereof and supersede any and all prior negotiations,
correspondence, agreements or understandings with respect to the subject matter
hereof.

16.           Transfer of Rights.  Subject to Section 9, each Investor may
assign or transfer any or all of its rights under this Agreement to any Person,
provided such assignee or transferee agrees in writing to be bound by the
provisions hereof.  Upon any such, and
each successive, assignment or transfer to any permitted assignee or transferee
in accordance with the terms of this Section 16, such permitted assignee
or transferee shall be deemed to be an “Investor”
for all purposes of this Agreement.

17.           Inspection Rights.  Each Qualifying Holder, or any officer,
employee, agent or representative thereof, shall have the right to visit and
inspect any of the properties of the Company and its subsidiaries to discuss
the affairs, finances, accounts and operations of the Company and its
subsidiaries with their respective officers, directors, employees, agents or
representatives, and to review and copy such information as reasonably
requested from time to time.

18.           Miscellaneous.

(a)           This Agreement, and any right, term
or provision contained herein, may not be amended, modified or terminated, and
no right, term or provision may be waived, except with the written consent of
(i) the holders of a majority of the Series B Preferred Stock and (ii) the
Company; provided, however, that any amendment or
modification that is materially and disproportionately adverse to any
particular Investor (as compared to all Investors as a group) shall require the
consent of such Investor.

(b)           This Agreement shall be governed by
and construed and enforced in 

 20
 

accordance with the laws
of the State of Delaware, without giving effect to conflicts of laws principles
thereof.  Any action or proceeding
seeking to enforce any provision of, or based on any right arising out of, this
Agreement shall be adjudicated in the Supreme Court of the State of New York,
New York County, or the United States District Court for the Southern District
of New York and each party expressly consents to the jurisdiction of such
courts in any such adjudication and expressly waives any objection to venue
laid therein.

(c)           This Agreement shall be binding upon
the parties hereto and their respective heirs, personal representatives,
successors and permitted assigns and transferees, provided that, with respect
to any transfer of rights by any Investor, the terms and conditions of Section
16 are satisfied.

(d)           Any notices to be given pursuant to
this Agreement shall be in writing and shall be given by certified or
registered mail, return receipt request. 
Notices shall be deemed given when personally delivered or when mailed
to the addresses of the respective parties as set forth on Exhibit A, Schedule
1 and Schedule 2 hereto, as applicable, or to such changed address
of which any party may notify the others pursuant hereto, except that a notice
of change of address shall be deemed given when received.  An electronic communication (“Electronic Notice”)
shall be deemed written notice for purposes of this Section 18(d) if
sent with return receipt requested to the electronic mail address specified by
the receiving party on Exhibit A, Schedule 1 and Schedule 2
hereto, as applicable.  Electronic Notice
shall be deemed received at the time the party sending Electronic Notice
receives verification of receipt by the receiving party.

(e)           The parties acknowledge and agree
that in the event of any breach of this Agreement, remedies at law will be
inadequate, and each of the parties hereto shall be entitled to specific
performance of the obligations of the other parties hereto and to such
appropriate injunctive relief as may be granted by a court of competent
jurisdiction.  All remedies, either under
this Agreement or by law or otherwise afforded to any of the parties, shall be
cumulative and not alternative.

(f)            This Agreement may be executed in a
number of counterparts. All such counterparts together shall constitute one Agreement
and shall be binding on all the parties hereto notwithstanding that all such
parties have not signed the same counterpart. 
The parties hereto confirm that any facsimile copy of another party’s
executed counterpart of this Agreement (or its signature page thereof) will be
deemed to be an executed original thereof.

(g)           Except as contemplated in Section
7, Section 14, and Section 16 hereof, this Agreement is
intended solely for the benefit of the parties hereto and is not intended to
confer any benefits upon, or create any rights in favor of, any Person
(including, without limitation, any stockholder or debt holder of the Company)
other than the parties hereto.

(h)           If any provision of this Agreement is
invalid, illegal or unenforceable, such provision shall be ineffective to the
extent, but only to the extent of, such invalidity, illegality or
unenforceability, without invalidating the remainder of such provision or the
remaining provisions of this Agreement, unless such a construction would be
unreasonable.

 21

IN WITNESS WHEREOF, the
parties hereto have executed this Investors’ Rights Agreement as of the date
and year first above written.

	
  

  	
  THE COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNI-PIXEL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Reed J. Killion

  	
   

  
	
   

  	
  Name: Reed J. Killion

  
	
   

  	
  Title: President

  

 

 

	
  

  	
  INVESTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TUDOR INVESTMENT CORP., as investment adviser to
  each Investor listed on Schedule 1 (other than Tudor Proprietary Trading,
  L.L.C.)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David I. Ginsberg

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David I. Ginsburg

  
	
   

  	
   

  	
  Title:

  	
  Managing Director, Special

  
	
   

  	
   

  	
   

  	
  Opportunities Group

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TUDOR PROPRIETARY TRADING, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David I. Ginsberg

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David I. Ginsburg

  
	
   

  	
   

  	
  Title:

  	
  Managing Director, Special

  
	
   

  	
   

  	
   

  	
  Opportunities GroupExhibit
10.3

FINAL
FORM OF WARRANT

NEITHER
THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS, AND NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE
OF THIS WARRANT MAY BE SOLD OR TRANSFERRED OTHER THAN PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER SAID ACT AND IN COMPLIANCE
WITH APPLICABLE STATE SECURITIES LAWS.

February 13, 2007

UNI-PIXEL,
INC.

COMMON
STOCK PURCHASE WARRANT

Void after February 13,
2017

This WARRANT (this
“Warrant”)
entitles [applicable Tudor Entity] (including any successors or assigns, the “Holder”), for value
received, to purchase from Uni-Pixel,
Inc., a Delaware corporation, at any time and from time to time, subject
to the terms and conditions set forth herein, all or any portion of the Warrant
Shares (as defined in Section 1 below) at the Exercise Price (as defined
in Section 1 below), during the period starting from 5:00 a.m. on the
Initial Exercise Date (as defined in Section 1 below) to 5:00 p.m.,
Eastern time, on the Expiration Date (as defined in Section 1 below), at
which time this Warrant shall expire and become void.  This Warrant is subject to the following
terms and conditions:

1.             Definitions.  As
used in this Warrant, the following terms shall have the respective meanings
set forth below or elsewhere in this Warrant:

“Affiliate” of any Person
means any other Person that, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
such Person, as such terms are used and construed under Rule 144 under the
Securities Act of 1933, as amended (the “Securities Act”),
including, without limitation, any other Person that serves as a general
partner, managing member and/or investment adviser or in a similar capacity of
such Person or any other Person for which such Person serves as a general
partner, managing member and/or investment adviser or in a similar capacity.

“Board” means the Board of Directors
of the Company.

“Business Day” means
any day except Saturday, Sunday and any day which is a federal legal holiday or
a day on which banking institutions in the State of New York or Texas are
authorized or required by law or other governmental action to close.

“Certificate
of Designations” means the Certificate of Designations of the
Series B 

Preferred Stock filed on or before the Closing (as
defined in the Securities Purchase Agreement) by the Company with the Secretary
of State of the State of Delaware, establishing the rights, preferences and
privileges of the Series B Preferred Stock.

“Common Stock” means
the Company’s common stock, par value $0.001 per share (including any
securities into which or for which such shares may be exchanged, or converted,
pursuant to any stock dividend, stock split, stock combination,
recapitalization, reclassification, reorganization or other similar event).

“Company” means
Uni-Pixel, Inc., a Delaware corporation.

“Exercise Price” means
$1.24 per share of Common Stock, subject to adjustment under the terms of this
Warrant.

“Expiration Date”
means February 13, 2017.

“Fair Market Value” on
any date of determination shall mean (i) if the Common Stock is listed on a
national securities exchange or admitted to quotation on a national automated
quotation system, then the last reported sale price per share of Common Stock
on such exchange or quotation system, as the case may be, on the date
immediately preceding the date of determination or, if no such sale price is
reported on such date, such price on the next preceding trading day in which
such price was reported, (ii) if the Common Stock is not listed on a national
securities exchange or quoted on a national automated quotation system, but is
actively traded over-the-counter, then the average of the closing bid and asked
prices over the five (5) trading days ended on the trading day immediately
preceding the date of determination or (iii) if such Common Stock is not
traded, quoted or listed on any national securities exchange, national
automated quotation system or the over-the-counter market, then the fair market
value of a share of Common Stock, as determined in good faith by the Board.

“Holder” has the
meaning set forth in the preamble of this Warrant.

“Initial Exercise Date”
means February 13, 2007.

“Initial
Public Offering” means the closing of the Company’s first public
offering of the Company’s Common Stock registered under the Securities Act.

“Investors’ Rights Agreement” means
that certain Investors’ Rights Agreement dated February 13, 2007, by and among
the Company, the Holder and the other investors in the Company party thereto.

“Person” (whether or
not capitalized) means an individual, entity, partnership, limited liability
company, corporation, association, trust, joint venture, unincorporated
organization, and any government, governmental department or agency or
political subdivision thereof.

 2
 

“SEC” means the
Securities and Exchange Commission.

“Securities Purchase Agreement”
means that certain Securities Purchase Agreement dated February 13, 2007, by
and among the Company, the Holder and the other parties thereto.

“Series B Preferred” means the
Company’s Series B Preferred Stock, par value $0.001 per share.

“Warrant Shares” means
an aggregate of 6,839,279 shares of Common Stock, subject to adjustments under
the terms of this Warrant, issued or issuable upon the exercise of this
Warrant.

2.             Exercise
of Warrant.

2.1           Method of Exercise.  Subject
to all of the terms and conditions hereof, this Warrant may be exercised, in
whole or in part, at any time and from time to time during the period
commencing on the Initial Exercise Date and ending on the Expiration Date.
Exercise shall be by presentation and surrender to the Company at its principal
office, or to the transfer agent of the Company, of this Warrant and the Notice
and Subscription form attached hereto as Exhibit 1, executed by the
Holder, which shall indicate the number of Warrant Shares for which the Holder
intends to exercise this Warrant, together with payment to the Company in
accordance with Section 3 hereof in an amount equal to the product of
(x) the Exercise Price multiplied by (y) the number of Warrant Shares issuable
upon such exercise.  Upon and as of
receipt by the Company (or the transfer agent) of such properly completed and
duly executed Notice and Subscription form accompanied by payment as herein
provided, the Holder shall be deemed to be the Holder of record of the Warrant
Shares issuable upon such exercise, notwithstanding that the stock transfer
books of the Company shall then be closed or that certificates representing
such Warrant Shares shall not then actually be, or have been, delivered to the
Holder.

2.2           Delivery
of Stock Certificates on Exercise. 
As soon as practicable after an exercise of this Warrant, and in any
event within five (5) Business Days thereafter, the Company, at its expense,
and in accordance with applicable securities laws, shall cause to be issued in
the name of and delivered to the Holder, or as the Holder may direct (subject
in all cases, to the provisions of Section 8 hereof), a certificate or
certificates for the number of Warrant Shares issued on the date of such
exercise, plus,in lieu of any
fractional share to which the Holder would otherwise be entitled, an amount of
cash equal to such fraction multiplied by the Fair Market Value.

2.3           Shares To Be Fully
Paid and Nonassessable.  All
Warrant Shares issued upon an exercise of this Warrant shall be validly issued,
fully paid and nonassessable, free of all liens, taxes, charges and other
encumbrances or restrictions on sale (other than those expressly set forth
herein).

 3
 

2.4           Fractional Shares.  No fractional shares of Common Stock or scrip
representing fractional shares of Common Stock shall be issued upon the
exercise of this Warrant. With respect to any fraction of a share of Common
Stock otherwise issuable upon any exercise hereof, the Company shall make a
cash payment to the Holder as set forth in Section 2.2 hereof.

2.5           Issuance of New
Warrants; Company Acknowledgment. 
Upon any partial exercise of this Warrant, the Company, at its expense,
will as soon as practicable and, in any event within five (5) Business Days
thereafter, issue and deliver to the Holder a new Warrant, registered in the
name of the Holder, exercisable, in the aggregate, for the balance of the
Warrant Shares and substantially identical to this Warrant.  Moreover, the Company shall, at the time of
any exercise of this Warrant, upon the request of the Holder, acknowledge in
writing its continuing obligation to afford to the Holder any rights to which
the Holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant; provided, however, that if the Holder does not make any such request,
the continuing obligation of the Company to afford to the Holder any such
rights shall not be affected.

2.6           Payment of Taxes
and Expenses.  The Company
shall pay any recording, filing, stamp or similar tax which may be payable in
respect of any transfer involved in the issuance of, and the preparation and
delivery of certificates (if applicable) representing, (i) any Warrant Shares
issued upon exercise of this Warrant and (ii) new or replacement Warrants in
the Holder’s name or the name of any transferee of all or any portion of this
Warrant; provided, however, that any tax payable
as a result of such transfer by the Holder to a transferee shall be paid by the
Holder.

3.             Payment of
Exercise Price.  The Exercise
Price for the Warrant Shares being purchased upon any exercise of this Warrant
may be paid, at the election of the Holder (i) in cash, by certified check or
by wire transfer to an account designated in writing by the Company, (ii) by cancellation of indebtedness owing from
the Company to the Holder, (iii) by the Holder surrendering a number of Warrant
Shares having a Fair Market Value on the date of exercise equal to, greater
than (but only if by a fractional share) or less than the Exercise Price, in
which case the Holder shall receive the number of Warrant Shares to which it
would otherwise be entitled upon such exercise, less the surrendered shares, or
(iv) any combination of the methods described in the foregoing clauses (i),
(ii) and (iii).

4.             Adjustment of
Exercise Price and Number of Warrant Shares.  The Exercise Price shall be subject to
adjustment from time to time upon the occurrence of certain events as follows:

4.1.          Subdivision or
Combination of Stock.  If at any
time or from time to time after the date hereof, the Company shall subdivide
(by way of stock dividend, stock split or otherwise) its outstanding shares of
Common Stock, the Exercise Price in effect immediately prior to such
subdivision shall be reduced proportionately and the number of Warrant Shares
(calculated to the nearest whole share) shall be increased proportionately, and
conversely, in the event the outstanding shares of Common Stock shall be
combined 

 4
 

(whether by stock
combination, reverse stock split or otherwise) into a smaller number of shares,
the Exercise Price in effect immediately prior to such combination shall be
increased proportionately and the number of Warrant Shares (calculated to the
nearest whole share) shall be decreased proportionately.  The Exercise Price and the number of Warrant
Shares, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described in this Section 4.1.

4.2           Adjustment for
Stock Dividends.  If at any
time after the date hereof, the Company shall declare a dividend or make any
other distribution upon any class or series of capital stock of the Company
payable in shares of Common Stock or other rights or securities convertible
into or exercisable for shares of Common Stock (other than the payment of
dividends on the Series A Preferred Stock of the Company (the “Series A Preferred”) in accordance
with the terms of the Certificate of Designations for the Series A Preferred,
the Exercise Price and the number of Warrant Shares shall be adjusted
proportionately.  The Exercise Price and
the number of Warrant Shares, as so adjusted, shall be readjusted in the same
manner upon the happening of any successive event or events described in this Section
4.2.

4.3           Adjustments for
Reclassifications.  If the Common Stock
issuable upon exercise of this Warrant shall be changed into, or the right to
receive, the same or a different number of shares of any other class(es) or
series of stock or other securities or property, whether by reclassification,
reorganization or otherwise (other than an adjustment under Section 4.1
and Section 4.2 or a merger, consolidation, or sale of assets provided
for under Section 4.4), then and in each such event, the Holder
hereof shall have the right thereafter to receive upon exercise of this Warrant
the kind and amount of shares of stock and other securities and property
receivable upon such reclassification, reorganization or other change in
respect of a number of shares of Common Stock equal to the number of Warrant
Shares otherwise issuable upon such exercise of this Warrant, all subject to
successive adjustments thereafter from time to time pursuant to and in
accordance with the provisions of this Section 4.

4.4           Sale of
Shares Below Exercise Price.

(a)           If
at any time or from time to time after the Initial Exercise Date, the Company
issues or sells, or is deemed by the express provisions of this Section 4.4(a)
to have issued or sold, Additional Shares of Common Stock (as defined below),
other than as provided in Section 4.1, Section 4.2 or Section
4.3, for an Effective Price (as defined below) less than the then effective
Exercise Price (such issuance, a “Qualifying
Dilutive Issuance”), then and in each such case, the then
existing Exercise Price shall be reduced, as of the opening of business on the
date immediately after such issue or sale, to a price determined by multiplying
the Exercise Price in effect immediately prior to such issuance or sale by a
fraction:

(i)            the numerator of
which shall be (x) the number of shares of Common Stock deemed outstanding (as
determined below) immediately prior to such issue or sale, plus (y) the
number of shares of Common Stock which the Aggregate Consideration (as defined 

 5
 

below)
received or deemed received by the Company for the total number of Additional
Shares of Common Stock so issued would purchase at the then effective Exercise
Price (prior to such adjustment); and

(ii)           the denominator of
which shall be the number of shares of Common Stock deemed outstanding (as
determined below) immediately prior to such issue or sale plus the total number
of Additional Shares of Common Stock so issued.

For the purposes of the
preceding sentence, the number of shares of Common Stock deemed to be
outstanding as of a given date shall be the sum of (x) the number of shares of
Common Stock outstanding and (y) the number of shares of Common Stock into
which the then outstanding shares of Series B Preferred could be converted if
fully converted on the day immediately preceding the given date.

(b)           No
adjustment shall be made to the Exercise Price in an amount less than one cent
per share.  Any adjustment otherwise
required by this Section 4.4 that is not required to be made due to the
preceding sentence shall be included in any subsequent adjustment to the
Exercise Price.

(c)           For
the purpose of making any adjustment required under this Section 4.4,
the aggregate consideration received by the Company for any issue or sale of
Additional Shares of Common Stock (the “Aggregate Consideration”) shall be
defined as: (i) to the extent it consists of cash, the amount of cash received
by the Company before deduction of any underwriting or similar commissions,
compensation or concessions paid or allowed by the Company in connection with
such issue or sale and without deduction of any expenses payable by the Company
in connection with such issue or sale, (ii) to the extent it consists of
property other than cash, the fair market value of that property as determined
in good faith by the Board (irrespective of accounting treatment), and (iii) if
Additional Shares of Common Stock, Convertible Securities (as defined below) or
rights or options to purchase either Additional Shares of Common Stock or
Convertible Securities are issued or sold together with other stock or
securities or other assets of the Company for a consideration which covers
both, the portion of the consideration so received that may be reasonably
determined in good faith by the Board to be allocable to such Additional Shares
of Common Stock, Convertible Securities or rights or options.

(d)           For
the purpose of the adjustment required under this Section 4.4, if the
Company issues or sells (x) preferred stock or other stock, options, warrants,
purchase rights or other securities convertible into Additional Shares of
Common Stock (such convertible stock or instruments being herein referred to as
“Convertible Securities”)
or (y) rights or options for the purchase of Additional Shares of Common Stock
or Convertible Securities and if the Effective Price (defined below) of such
Additional Shares of Common Stock is less than the then effective Exercise
Price, in each case the Company shall be deemed to have issued at the time of
the issuance of such rights or options or Convertible Securities the maximum
number of Additional Shares of Common Stock issuable upon exercise or
conversion in full thereof and to have received as consideration 

 6
 

for the issuance of such shares an amount equal to the total amount of
the consideration, if any, received by the Company for the issuance of such
rights or options or Convertible Securities plus:

(i)            in the case of such
rights or options, the minimum amount of consideration, if any, payable to the
Company upon the exercise of such rights or options; and

(ii)           in the case of
Convertible Securities, the minimum amount of consideration, if any, payable to
the Company upon the conversion thereof (other than by cancellation of
liabilities or obligations evidenced by such Convertible Securities); provided, however, that if the minimum amount of such
consideration cannot be ascertained, but are a function of antidilution or
similar protective clauses, the Company shall be deemed to have received the
minimum amount of consideration without reference to such clauses.

If the minimum amount of consideration payable to the Company upon the
exercise or conversion of rights, options or Convertible Securities is reduced
over time or on the occurrence or non-occurrence of specified events other than
by reason of antidilution adjustments, the Effective Price shall be
recalculated using the decreased minimum amount of consideration; provided further, however, that if the minimum amount of
consideration payable to the Company upon the exercise or conversion of such
rights, options or Convertible Securities is subsequently increased (other than
by reason of antidilution adjustments), the Effective Price also shall be
recalculated using the increased minimum amount of consideration.

No further adjustment of the Exercise Price, as adjusted upon the
issuance of such rights, options or Convertible Securities, shall be made as a
result of the actual issuance of Additional Shares of Common Stock or the
exercise of any such rights or options or the conversion of any such
Convertible Securities.  If any such
rights or options or the conversion privilege represented by any such
Convertible Securities shall expire or terminate without having been exercised,
the then effective Exercise Price, which was adjusted upon the issuance of such
rights, options or Convertible Securities, shall be readjusted on the basis of
the Additional Shares of Common Stock, if any, actually issued or sold on the
exercise of such rights or options or rights of conversion of such Convertible
Securities, the consideration actually received by the Company upon such
exercise (other than by cancellation of liabilities or obligations evidenced by
such Convertible Securities) and the consideration, if any, actually received
by the Company upon the original issuance of all such rights or options or
Convertible Securities, whether or not exercised; provided,
however, that such readjustment shall not apply to prior exercises
of Warrants.  No adjustments made
pursuant to this Section 4.4 shall apply to prior exercises of Warrants.

(e)           For
the purpose of making any adjustment to the Exercise Price required under this Section
4.4, “Additional Shares of
Common Stock” shall mean all shares of Common Stock issued by
the Company or deemed to be issued pursuant to this 

 7
 

Section 4.4 (including shares of Common Stock
subsequently reacquired or retired by the Company), other than:

(i)            shares of Common
Stock issued upon conversion of shares of Series A Preferred or Series B
Preferred or exercise of any other Convertible Securities (including the other
warrants issued concurrently with the Series B Preferred under the Securities
Purchase Agreement) outstanding as of the Initial Exercise Date;

(ii)           the payment of
dividends on the Series A Preferred in additional shares of Series A Preferred
in accordance with the terms of the Certificate of Designations for the Series
A Preferred;

(iii)          the shares of
Common Stock (or options thereon) issued after the Initial Exercise Date to
employees, officers or directors of, or consultants or advisors to the Company
or any subsidiary pursuant to stock purchase or stock option plans or other
compensatory arrangements which, if required by the Certificate of
Designations, have been approved by the requisite holders of Series B Preferred
(collectively, “Plans”); provided, however,
that any such issuances are approved by the Board;

(iv)          shares of Common
Stock or Convertible Securities issued pursuant to any equipment loan or
leasing arrangement, real property leasing arrangement or debt financing from a
bank or similar financial institution approved by the Board;

(v)           shares of Common
Stock or Convertible Securities issued in connection with bona fide
acquisitions, mergers or similar transactions, the terms of which are approved
by the Board; or

(vi)          shares of Common
Stock or Convertible Securities issued to any person as a component of any
business relationship with such person primarily for (A) joint venture,
technology licensing or development activities purposes, (B) purposes of
distribution, supply or manufacture of the Company’s products or services or
(C) any purposes other than raising capital, the terms of which are approved by
the Board.

References to Common
Stock in the subsections of this clause (e) above shall mean all shares of
Common Stock issued by the Company or deemed to be issued pursuant to this Section
4.4.

(f)            The
“Effective Price”
of Additional Shares of Common Stock shall mean the quotient determined by
dividing the total number of Additional Shares of Common Stock issued or sold,
or deemed to have been issued or sold by the Company under this Section 4.4,
into the Aggregate Consideration received, or deemed to have been 

 8
 

received, by the Company for such issue under this Section 4.4,
for such Additional Shares of Common Stock. 
In the event that the number of shares of Additional Shares of Common
Stock or the Effective Price cannot be ascertained at the time of issuance,
such Additional Shares of Common Stock shall be deemed issued immediately upon
the occurrence of the first event that makes such number of shares or the
Effective Price, as applicable, determinable.

(g)           In
the event that the Company issues or sells, or is deemed to have issued or
sold, Additional Shares of Common Stock in a Qualifying Dilutive Issuance (the “First Dilutive Issuance”) and then
issues or sells, or is deemed to have issued or sold, Additional Shares of
Common Stock in additional Qualifying Dilutive Issuances as part of the same
transaction or series of related transactions as the First Dilutive Issuance (a
“Subsequent Dilutive Issuance”), then
and in each such case upon a Subsequent Dilutive Issuance the Exercise Price
shall be reduced to the Exercise Price that would have been in effect had the
First Dilutive Issuance and each Subsequent Dilutive Issuance all occurred on
the closing date of the First Dilutive Issuance.

4.5           Adjustments for
Merger or Consolidation.  In the event that, at any
time or from time to time after the date hereof, the Company shall (a) effect a
reorganization, (b) consolidate with or merge into any other Person, or (c)
sell or transfer all or substantially all of its properties or assets or more
than fifty percent (50%) of the voting capital stock of the Company (whether
issued and outstanding, newly issued, from treasury, or any combination
thereof) to any other person under any plan or arrangement contemplating the
consolidation or merger, sale or transfer, or dissolution of the Company, then,
in each such case, the Holder, upon the exercise of this Warrant at any time or
from time to time after the consummation of such reorganization, consolidation,
merger or sale or the effective date of such dissolution, as the case may be,
shall receive, in lieu of the Warrant Shares otherwise issuable upon such
exercise, the stock and property (including cash) to which the Holder would
have been entitled upon the consummation of such consolidation or merger, or
sale or transfer, or in connection with such dissolution, as the case may be,
if the Holder had exercised this Warrant immediately prior thereto (assuming
the payment by the Holder of the Exercise Price therefor as required hereby,
which payment shall be included in the assets of the Company for the purposes
of determining the amount available for distribution), all subject to
successive adjustments thereafter from time to time pursuant to, and in
accordance with, the provisions of this Section 4.

4.6           Continuation of Terms.  Upon any reorganization,
consolidation, merger or transfer (and any dissolution following any such
transfer) referred to in this Section 4, this Warrant shall continue in
full force and effect and the terms hereof shall be applicable to the shares of
stock and other securities and property to which the Holder has a right to
receive upon the exercise of this Warrant after the consummation of such
reorganization, consolidation or merger or the effective date of dissolution
following any such transfer, as the case may be, and shall be binding upon the
issuer or owner of any such stock or other securities and property, including,
in the case of any such transfer, the Person acquiring all or substantially all
of the properties or assets or more than fifty percent (50%) of the voting
capital stock of the Company (whether issued and outstanding, newly issued or 

 9
 

from
treasury or any combination thereof), whether or not such Person shall have
expressly assumed the terms of this Warrant.

4.7           Certificate as to
Adjustments.  Upon the
occurrence of each event requiring adjustment or readjustment of the Exercise
Price and number of Warrant Shares pursuant to this Section 4, this
Warrant shall, without any action on the part of the Holder, be adjusted in
accordance with this Section 4, and the Company, at its expense,
promptly shall compute such adjustment or readjustment in accordance with the
terms hereof and prepare and furnish to the Holder a certificate setting forth
such adjustment or readjustment, showing in reasonable detail the facts and
calculations upon which such adjustment or readjustment is based.  The Company will forthwith send a copy of
each such certificate to the Holder in accordance with Section 10.4
below.

5.             Registration
Rights.  The Warrant Shares
shall be entitled to registration rights and all other rights as applicable to
such shares in accordance with the Investors’ Rights Agreement.

6.             Notices of Record
Date.  Upon (a) any
establishment by the Company of a record date of the holders of Common Stock
for the purpose of determining the holders thereof who are entitled to receive
any dividend or other distribution, or right or option to acquire securities of
the Company, or any other right, or (b) any capital reorganization,
reclassification, recapitalization, merger or consolidation of the Company with
or into any other corporation, any transfer of all or substantially all the
assets of the Company, or any voluntary or involuntary dissolution, liquidation
or winding up of the Company, or the sale, in a single transaction, of more
than fifty percent (50%) of the Company’s voting capital stock (whether newly
issued, or from treasury, or previously issued and then outstanding, or any
combination thereof), the Company shall mail to the Holder at least ten (10)
Business Days, or such longer period as may be required by law, prior to the
applicable record date or effective date, a notice specifying (i) the date
established as the record date for the purpose of such dividend, distribution,
option or right and a description of such dividend, distribution, option or
right, (ii) the date on which any such reorganization, reclassification,
transfer, consolidation, merger, dissolution, liquidation or winding up, or
sale is expected to become effective and (iii) the date, if any, fixed as to
when the holders of record of Common Stock shall be entitled to exchange their
shares of Common Stock for securities or other property deliverable upon such
reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding up.

7.             Exchange of Warrant.  Subject
to the provisions of Section 8 hereof (if and to the extent applicable),
this Warrant shall be exchangeable, upon the surrender hereof by the Holder at
the principal office of the Company, for new Warrants, each registered in the
name of the Holder or in the name of such other persons as the Holder may
direct (upon payment by the Holder of any applicable transfer taxes).  Each of such new Warrants shall be
exercisable for such number of Warrant Shares as the Holder shall direct; provided, however, that
all of such new Warrants shall represent, in the aggregate, the right to
purchase the same number of Warrant Shares and cash, securities or other
property, if any, 

 10
 

which
may be purchased by the Holder upon exercise of this Warrant at the time of its
surrender and shall otherwise be substantially identical as this Warrant.

8.             Transfer
Provisions, etc.

8.1           Legends.  Each certificate representing Warrant Shares
issued upon exercise of this Warrant shall bear the following legend:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
REGISTRATION UNDER SAID ACT.”

8.2           Mechanics
of Transfer.

(a)           Subject to compliance
with the Investors’ Rights Agreement and the Securities Purchase Agreement, any
transfer of all or any portion of this Warrant, or of any interest herein, that
is otherwise in compliance with applicable law and the Securities Purchase
Agreement shall be effected by surrendering this Warrant to the Company at its
principal office, together with a duly executed form of assignment, in the form
attached as Exhibit 2 hereto.

(b)           In the event of any
transfer of all or any portion of this Warrant in accordance with Section
8.2(a) above, the Company shall issue (i) a new Warrant to the transferee,
representing the right to purchase the number of Warrant Shares, and cash,
securities or other property, if any, which were purchasable by the Holder of
the transferred portion of this Warrant, and (ii) a new Warrant to the Holder,
representing the right to purchase the number of Warrant Shares, and cash,
securities or other property, if any, purchasable by the Holder of the balance
of this Warrant.  Until this Warrant or
any portion thereof is transferred on the books of the Company, the Company may
treat the Holder as the absolute holder of this Warrant and all right, title
and interest therein for all purposes, notwithstanding any notice to the
contrary.

8.3           No
Restrictions on Transfer.  Subject to compliance with applicable
securities laws, the Securities Purchase Agreement and the Investors’ Rights
Agreement (including, but not limited to, the transfer restrictions in the
Investors’ Rights Agreement), this Warrant and any portion hereof, the Warrant
Shares and the rights hereunder may be transferred by the Holder in its sole
discretion at any time and to any Person or Persons, including, without
limitation, Affiliates and affiliated groups of such Holder, without the
consent of the Company.

8.4           Warrant Register. 
The Company shall keep at its principal office a register for the
registration, and registration of transfers, of the Warrants.  The name and address of each Holder of one or
more of the Warrants, each transfer thereof and the name 

 11
 

and address of each
transferee of one or more of the Warrants shall be registered in such
register.  The Company shall give to any
Holder of a Warrant promptly upon request therefor, a complete and correct copy
of the names and addresses of all registered Holders of the Warrants.

9.             Lost, Stolen or
Destroyed Warrant.  Upon
receipt by the Company of evidence satisfactory to the Company of loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or
destruction, on delivery of a customary affidavit of the Holder and indemnity
agreement, or, in the case of mutilation, upon surrender of this Warrant, the
Company at its expense will execute and deliver, or will instruct its transfer
agent to execute and deliver, a new Warrant and any such lost, stolen or
destroyed Warrant thereupon shall become void.

10.           General.

10.1         Authorized
Shares, Reservation of Shares for Issuance.  At all times while this Warrant
is outstanding, the Company shall maintain its corporate authority to issue,
and shall have authorized and reserved for issuance upon exercise of this
Warrant, such number of shares of Common Stock and any other capital stock or
other securities as shall be necessary to perform its obligations under this
Warrant, taking into account any and all adjustments to the Warrant Shares
under this Warrant.

10.2         No
Dilution or Impairment.  The Company will not, by amendment of its
Certificate of Incorporation or Bylaws or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issuance or sale of securities,
sale or other transfer of any of its assets or properties, or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Holder hereunder
against dilution or other impairment. Without limiting the generality of the
foregoing, the Company (a) will not increase the par value of any shares of
Common Stock issuable upon the exercise of this Warrant above the amount
payable therefor on such exercise, and (b) will take all action that may be necessary
or appropriate in order that the Company may validly and legally issue fully
paid and nonassessable shares of Common Stock (and any other capital stock or
other securities) upon the exercise of this Warrant.

10.3         No Rights as
Stockholder. The Holder shall not be entitled to vote or to
receive dividends or to be deemed the holder of the shares of Common Stock that
may at any time be issuable upon exercise of this Warrant for any purpose
whatsoever, nor shall anything contained herein be construed to confer upon the
Holder any of the rights of a stockholder of the Company or any right to vote
for the election of directors or upon any matter submitted to stockholders at
any meeting thereof, or to give or withhold consent to any corporate action
(whether upon any recapitalization, issuance or reclassification of stock,
change of par value or change of stock to no par value, consolidation, merger
or conveyance or otherwise), or to receive notice of meetings (except to the
extent otherwise provided in this Warrant), or to receive dividends or
subscription rights, until the Holder 

 12
 

shall have
exercised this Warrant and been issued Warrant Shares or other securities in
accordance with the provisions hereof.

10.4         Notices.  All notices, requests, consents and other
communications (hereinafter collectively referred to as “correspondence”)
required or permitted to be given hereunder shall be given in writing and shall
be deemed given if sent by certified or registered mail (return receipt
requested), overnight courier or telecopy (with confirmation of receipt), or
delivered by hand to the party to whom such correspondence is required or
permitted to be given hereunder.  An
electronic communication (“Electronic Notice”)
shall be deemed written notice for purposes of this Section 10.4 if sent
with return receipt requested to the electronic mail address specified by the
receiving party in this Section 10.4. 
Electronic Notice shall be deemed received at the time the party sending
Electronic Notice receives verification of receipt by the receiving party.  All correspondence shall be addressed as
follows:

(a)  if to the
Company at:

Uni-Pixel, Inc.

8708 Technology Forest
Place

Suite 100

The Woodlands, Texas
77381

Attention:  James Tassone, President

Facsimile:  (281) 825-4599

Email: 
jtassone@unipixel.com

with copies to:

Jones, Walker, Waechter,
Poitevent, Carrère & Denègre, L.L.P.

Four United Plaza

8555 United Plaza
Boulevard

Baton Rouge, LA 70809

Attention: Scott D.
Chenevert, Esq.

Facsimile: (225) 248-2010

Email: schenevert@joneswalker.com

(b)  if to the Holder, at the Holder’s address
appearing in the books maintained by the Company.

11.           Amendment and
Waiver.  No failure or delay of the Holder in exercising
any power or right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Holder are
cumulative and not exclusive of any rights or remedies which it would otherwise
have. The terms of this 

 13
 

Warrant may be amended,
modified or waived only with the written consent of the Company and the Holder.

12.           Governing Law.  This Warrant shall be governed by and
construed in accordance with the laws of the State of Delaware, as such laws
are applied to contracts entered into and wholly to be performed within the
State of Delaware and without giving effect to any principles of conflicts or
choice of law that would result in the application of the laws of any other
jurisdiction.

13.           Covenants To Bind Successor and Assigns.  All covenants, stipulations,
promises and agreements in this Warrant contained by or on behalf of the Company
shall bind its successors and assigns, whether so expressed or not.

14.           Severability.  In case
any one or more of the provisions contained in this Warrant shall be held
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby.  The
parties shall endeavor in good faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

15.           Construction.  The definitions of this Warrant shall apply
equally to both the singular and the plural forms of the terms defined.
Wherever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The section and paragraph headings used
herein are for convenience of reference only, are not part of this Warrant and
are not to affect the construction of or be taken into consideration in
interpreting this Warrant.

16.           Remedies.  The Holder, in addition to being
entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The
Company agrees that monetary damages would not be adequate compensation for any
loss incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive the defense in any action for specific performance that
a remedy at law would be adequate. In any action or proceeding brought to
enforce any provision of this Warrant or where any provision hereof is validly
asserted as a defense, the successful party to such action or proceeding shall
be entitled to recover reasonable attorneys’ fees in addition to any other
available remedy.

[The remainder of this page
is left intentionally blank.]

 14

IN WITNESS WHEREOF, the Company has executed this Common Stock Purchase
Warrant as of the date set forth above.

	
  

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNI-PIXEL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Reed J. Killion

  	
   

  
	
   

  	
   

  	
  Title: President

  	
   

  

 

SIGNATURE PAGE TO COMMON STOCK
PURCHASE WARRANT OF

Uni-Pixel, INC.

EXHIBIT 1

NOTICE AND

SUBSCRIPTION

	
  To:

  	
  Uni-Pixel, Inc.

  	
  Date:                              

  
	
   

  	
  8708 Technology Forest Place

  	
   

  
	
   

  	
  Suite 100

  	
   

  
	
   

  	
  The Woodlands, Texas 77381

  	
   

  

 

The undersigned
hereby irrevocably elects to exercise the right of purchase represented by the
attached Warrant for, and to exercise thereunder,                     
shares of Common Stock of Uni-Pixel, Inc., a Delaware corporation, and tenders
herewith payment of $                    ,
representing the aggregate purchase price for such shares based on the price
per share provided for in such Warrant. Such payment is being made in
accordance with [Section 3(i)] [Section 3(ii)] [Section 3(iii)] [Section 3(iv)]
of the attached Warrant.

Please issue a
certificate or certificates for such shares of Common Stock in the following
name or names and denominations and deliver such certificate or certificates to
the person or persons listed below at their respective addresses set forth
below:

 

If said number of shares
of Common Stock shall not be all the shares of Common Stock issuable upon
exercise of the attached Warrant, a new Warrant is to be issued in the name of
the undersigned for the balance remaining of such shares of Common Stock less
any fraction of a share of Common Stock paid in cash.

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  

 

EXHIBIT 2

FORM OF ASSIGNMENT

For value received,                                                              
hereby sells, assigns and transfers unto                                               
the attached Warrant [a portion of the attached Warrant representing the right
to purchase            ,
of the total        , shares of Common
Stock issuable upon exercise of this Warrant, together with all right, title
and interest therein, and does hereby irrevocably constitute and appoint                                           
attorney to transfer said Warrant [said portion of said Warrant] on the books
of Uni-Pixel, Inc., a Delaware corporation, with full power of substitution in
the premises.

If only a portion
of the attached Warrant is to be so transferred, a new Warrant is to be issued
in the name of the undersigned for the balance of said Warrant.

The undersigned
hereby agrees that it will not sell, assign, or transfer the right, title and
interest in and to the Warrant unless applicable federal and state securities
laws have been complied with.

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

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